E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 111 CONGRESS, SECOND SESSION

Vol. 156 WASHINGTON, WEDNESDAY, APRIL 28, 2010 No. 61 House of Representatives The House met at 10 a.m. and was PLEDGE OF ALLEGIANCE Meanwhile, Goldman Sachs and oth- called to order by the Speaker pro tem- The SPEAKER pro tempore. Will the ers reaped millions of dollars in bo- pore (Mr. ISRAEL). gentleman from North Carolina (Mr. nuses even as the economy was crash- ing. These synthetic CDOs were syn- f COBLE) come forward and lead the House in the Pledge of Allegiance. thetic garbage. DESIGNATION OF THE SPEAKER Mr. COBLE led the Pledge of Alle- Unscrupulous individuals on Wall Street PRO TEMPORE giance as follows: worsened the financial crisis by creating gar- The SPEAKER pro tempore laid be- I pledge allegiance to the Flag of the bage, selling it and betting against it. Oh, they United States of America, and to the Repub- drove away with a garbage truck full of cash. fore the House the following commu- lic for which it stands, one nation under God, nication from the Speaker: Let’s ban the creation and sale of them, and indivisible, with liberty and justice for all. prevent this from ever happening again. WASHINGTON, DC, f April 28, 2010. f I hereby appoint the Honorable STEVE ANNOUNCEMENT BY THE SPEAKER ISRAEL to act as Speaker pro tempore on this PRO TEMPORE AMERICANS ABROAD FACE day. The SPEAKER pro tempore. The BANKING ROADBLOCKS NANCY PELOSI, Speaker of the House of Representatives. Chair will entertain up to 15 requests (Mr. WILSON of South Carolina for 1-minute speeches on each side of asked and was given permission to ad- f the aisle. dress the House for 1 minute and to re- PRAYER f vise and extend his remarks.) Mr. WILSON of South Carolina. Mr. The Chaplain, the Reverend Daniel P. GAMBLING ON SYNTHETIC Speaker, Americans living abroad con- Coughlin, offered the following prayer: GARBAGE tinue to face unnecessary roadblocks O Divine Peace, bless this place, (Ms. SPEIER asked and was given not only to U.S. banks, but increas- holding in its silence human hopes and permission to address the House for 1 ingly at foreign banks as well. The re- America’s dreams. Plant seeds of minute and to revise and extend her re- quests from expats continue to come in equality and hopefulness in other na- marks.) at a startling rate. tions as well. May the history of our Ms. SPEIER. Mr. Speaker, as I I want to thank Congresswoman struggles make us patient as the map watched yesterday’s Senate investiga- CAROLYN MALONEY for helping to bring of the world changes. tions subcommittee hearing, I was dis- these banking roadblocks to the atten- In all our efforts to establish peace, appointed to discover it was not just tion of the Treasury Department. We fair trade, civil rights, and freedom of the greedy, irresponsible, and likely il- are hoping that the Financial Services religion, may we provide learning and legal actions of some of Goldman Committee will soon hold hearings to experience to others. Lift all beyond Sachs’ more dubious employees that review current U.S. banking laws and mere material prosperity to seek true were the center of attention. In fact, regulations that may prevent Ameri- compassion for those most in need and the useless and dangerous financial in- cans living overseas from accessing create a spiritual dynamic that will struments known as synthetic U.S. banking services. build a kingdom of unity and happiness collateralized debt obligations, or International Herald Tribune re- where Your Presence will be realized. CDOs, shared the spotlight as well. porter Brian Knowlton recently high- This we ask calling forth Your Spirit Fabrice Tourre, one of Goldman’s lighted that ‘‘amid mounting frustra- upon us and the whole world both now hotshot young stars who created and tion over taxation and banking prob- and forever. Amen. sold these so-called investments to Goldman’s clients, testified yesterday lems, small but growing numbers of f that they were, quote, ‘‘things which overseas Americans are taking the had no purpose,’’ and likened them to weighty step of renouncing their citi- THE JOURNAL Frankenstein’s monster. Sadly, he’s zenship.’’ I encourage the Financial The SPEAKER pro tempore. The right. These CDOs did nothing for our Services Committee to read Knowlton’s Chair has examined the Journal of the economy and spread billions of dollars article and schedule a hearing in the last day’s proceedings and announces in toxic assets, heightened speculation, very near future. to the House his approval thereof. and added dangerous risk to our finan- In conclusion, God bless our troops Pursuant to clause 1, rule I, the Jour- cial system that ultimately was borne and we will never forget September nal stands approved. by the U.S. taxpayers. 11th in the Global War on Terrorism.

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

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VerDate Mar 15 2010 00:10 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00001 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.000 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2940 CONGRESSIONAL RECORD — HOUSE April 28, 2010 CUT CONGRESSIONAL PAY who are asked for legal documents and will recover from this disaster. We will (Mrs. KIRKPATRICK of Arizona those that are not. Anyone who values continue working with authorities at asked and was given permission to ad- fairness is opposed to this kind of hate all levels of government toward the dress the House for 1 minute and to re- and should not spend one cent of shared goal of recovery. vise and extend her remarks.) money in Arizona except to create jobs. I ask my colleagues to join me in ex- Mrs. KIRKPATRICK of Arizona. Mr. I urge Americans to show their sup- pressing our condolences for those who Speaker, yesterday the House passed a port of the boycott by wearing red, yel- lost their lives during this weekend’s bill to stop the 2011 congressional pay low, and blue wristbands. This mis- storm, praying for those who were in- hike. I am proud to cosponsor this ef- guided law is another example why we jured or lost their homes or businesses, fort. Member salaries come out of tax- must act now. We need Republicans to and wishing Mississippi a swift recov- payer dollars. Washington needs to stand with Democrats in a bipartisan ery. know it would be unacceptable to have fashion to support comprehensive re- taxpayers who are making less pay us form now. f more. f When millions of Americans are A NUCLEAR IRAN IS A SEVERE PROMOTING DISTRICT EVENT—RE- THREAT tightening their belts, folks have the CESSION PROOF YOUR FINANCES right to expect their elected officials to (Mr. FLEMING asked and was given (Mr. SAM JOHNSON of Texas asked do the same. Blocking the pay hike was permission to address the House for 1 and was given permission to address a necessary first step, but it cannot be minute.) the House for 1 minute and to revise the last. Washington can and must do Mr. FLEMING. Mr. Speaker, the and extend his remarks.) more. DOD’s recently released Military Mr. SAM JOHNSON of Texas. During Members have not reduced their sala- Power Report on Iran should be a these tough economic times, many peo- ries for 77 years, since the Great De- wake-up call for the President and the ple are experiencing financial uncer- pression. I do not know anyone back in leadership here in Congress. While I am tainty. That’s why on Saturday, May 8, Arizona who has gone eight decades glad the Pentagon undertook this as- at 9 a.m. in Plano, Texas, I will host a without a pay cut. Senators and Rep- sessment, I and most Americans didn’t free workshop titled Recession Proof- resentatives should be no different. need a report to confirm the Iranian ing Your Resources. I will host the free That is why I introduced legislation to threat is real and credible. seminar in conjunction with Consumer cut congressional pay by 5 percent. Iran’s extremist regime poses a sig- Credit Counseling Service of Greater This Congress needs to pass my bill nificant danger to the United States Dallas. now. Americans are tired of waiting for and our allies, particularly Israel. Also, Unplanned emergencies like job loss, Washington to get it. because of our failure to implement illness, natural disaster, or death can tough sanctions against Iran, many na- f be overwhelming and financially tax- tions will feel the need to develop ing. Financial knowledge and a sound VETERANS MEMORIAL nukes, while we are reducing our financial contingency plan are vital to DEDICATION stockpile and failing to modernize our ensuring that you and your family nuclear inventory. (Mr. COBLE asked and was given per- come out of this fiscal crisis in the In addition, we have halted the pro- mission to address the House for 1 black. duction of F–22s, allowed a window of minute and to revise and extend his re- Fortunately, there are ways to plan vulnerability in missile defense, and marks.) for unexpected life changes. An expert have delayed development of the Mr. COBLE. Mr. Speaker, last Sun- will be on hand to show people how to NextGen bomber. I hope the Democrat day afternoon I attended the Robbins, learn more. Visit SamJohnson.house.gov majority and the President do not North Carolina, First Wesleyan or you may RSVP by calling my Texas shortchange the DOD again this year Church’s Veterans Memorial Dedica- office in Richardson. tion. The program was generously on key investments in ballistic missile f laced with patriotic music and appro- defense, the NextGen bomber, and priate hymns. Veterans, living and de- SUPPORT FOR MISSISSIPPI AFTER other vital initiatives to protect our ceased, were recognized. THE TORNADOES homeland and our allies well into the It has been said, Mr. Speaker, that (Mr. CHILDERS asked and was given future. many Americans do not practice patri- permission to address the House for 1 otism as they did in the past, in the minute.) f World War II era in particular. Not Mr. CHILDERS. Mr. Speaker, this true in Robbins, when last Sunday pa- weekend Mississippi communities were HONORING RENAE OGLETREE triotism was alive and well. And I am struck by the largest natural disaster (Mr. QUIGLEY asked and was given appreciative to the Wesleyan Church in to hit our State since Hurricane permission to address the House for 1 Robbins for the invitation that I re- Katrina. Saturday’s devastating torna- minute.) ceived to attend that very special day does hit several areas in North Mis- Mr. QUIGLEY. Mr. Speaker, Renae in Robbins Saturday last. sissippi, including three counties in the Ogletree dedicated her life to fighting f First Congressional District, which I for others. She fought for equality in represent. Damages included more than the GLBT community. She fought for COMPREHENSIVE IMMIGRATION 700 homes or mobile homes destroyed, equality for everyone. She fought to REFORM various businesses, 49 injuries, and 10 bring people together around issues of (Mr. BACA asked and was given per- deaths. diversity, development, and health mission to address the House for 1 I would like to express my deepest care. She fought for the children in the minute and to revise and extend his re- condolences to the families of the vic- Chicago Public Schools. marks.) tims killed in Choctaw, Holmes, and In the final days of her life, the com- Mr. BACA. I stand to voice my strong Yazoo Counties. Choctaw County spe- munity she served for so long sur- opposition to the new Arizona law, S.B. cifically is located in Mississippi’s rounded her with love and comfort. 1070. This is an unjust law, inspired by First District. Upon learning of her illness, President hate and racism. The new law opens My thoughts and prayers go out to Obama wrote to Renae, ‘‘In trying the door to serious civil rights abuses, the families of Andra Patterson, sisters times, each of us draw on the power of and will lead to racial profiling of Tyana and Brittney Jobe, and Mary hope, determination, perseverance, and Latinos and Latinas in Arizona and and Bobby Yates. I would also like to faith.’’ people of color. express my support for all those Mis- Renae Ogletree lived her life chang- It is unconstitutional, violating the sissippians who suffered injuries and ing the community she served through 4th and 14th amendments. This new law damage to their homes and businesses. a perseverance few may ever know. will create a division between people We are a strong community, and we Renae, we’ll continue your fight.

VerDate Mar 15 2010 00:10 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00002 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.003 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2941 CMS REPORT ON HEALTH CARE Americans will have access to health minute and to revise and extend her re- BILL insurance. marks.) (Mr. SMITH of Nebraska asked and Americans are already realizing the Ms. TITUS. Today I join with people benefits of this legislation. For in- was given permission to address the across the country to commemorate stance, for the past few years, as chair- House for 1 minute and to revise and Workers’ Memorial Day, honoring man of the Oversight and Investiga- extend his remarks.) workers killed, injured, or harmed at tions Subcommittee, we have inves- Mr. SMITH of Nebraska. Mr. Speak- work. tigated the industry practice of rescis- er, despite assurances the health care Unfortunately, workers in Nevada sion. Rescission occurs when the insur- bill would actually lower costs for the are all too aware of the dangers they ance company pores through your pol- American people, actually things are face in the workplace. A number of icy application to find any excuse to quite different. An independent CMS deaths on the job in recent years led to drop you from coverage when you be- report released last week concluded Nevada’s being the first State in the come ill. So when you need the insur- America will spend $311 billion more on country to undergo an in-depth review ance the most, they look for an excuse that highlighted the problems facing health care under the new law than we to abandon you. This rescission prac- would have without it. It increases the State’s OSHA program. This review tice used by insurance companies em- made it clear to me that Federal OSHA taxes on the middle class. About 3 mil- ploy up to 1,400 different computer en- lion people will have to pay the insur- needs an additional option to work tries to kick out claims of people who with States that are not meeting Fed- ance mandate penalty tax. It also kills may become seriously ill, to drop them jobs through mandates on small busi- eral standards. Currently, OSHA can when they are sick, and will cost the only suggest improvements or com- nesses. insurance companies some money. The American people have said this pletely take over the State’s program. As chair of Oversight and Investiga- That’s why I introduced the Ensuring is not the direction in which they tions, I have written to the largest in- would choose to go. Health care reform Worker Safety Act. This legislation surance companies to stop this practice aims to protect both workers and should be patient-centered to increase of rescission now. Under the health access to care and reduce costs without States’ rights by giving Federal OSHA care legislation we passed, it says re- additional tools to make sure that bankrupting our Nation and limiting scission practice will stop in Sep- our liberties. We should, rather, allow State OSHA plans like Nevada’s are at tember, but I urge the insurance com- least as effective as Federal standards individuals to band together across panies to stop this unconscionable State lines to allow deductibility to ev- and enforcement. practice now. In America health care is The slogan of Workers’ Memorial eryone for the cost of premiums, and to a right; it’s not a privilege. crack down on junk lawsuits. Day is ‘‘Remember the Dead and Fight f for the Living.’’ That’s what I intend to f WALL STREET REFORM do in Congress. WALL STREET REFORM (Mr. WALZ asked and was given per- f (Mr. MILLER of North Carolina mission to address the House for 1 PARTY OF ‘‘NO’’ asked and was given permission to ad- minute and to revise and extend his re- (Mr. YARMUTH asked and was given dress the House for 1 minute.) marks.) permission to address the House for 1 Mr. MILLER of North Carolina. Sen- Mr. WALZ. Mr. Speaker, 2 years ago, minute.) ator MCCONNELL said yesterday about our Nation experienced the beginning Mr. YARMUTH. Mr. Speaker, I know Wall Street reform that ‘‘as you look of the worst financial crisis since the our Republican friends don’t like it at the bill closer and closer, it is most- stock market crash of 1929, resulting in when we call them the party of ‘‘no,’’ ly about Main Street.’’ Yes, Wall the longest, deepest financial downturn but let’s review the score for just a Street reform is about Main Street be- since the Great Depression. minute. cause Americans trying to make an While the factors that contributed to On health care reform, 177 noes, no honest living on Main Street are being the crash were numerous and com- yeses. On Wall Street reform, 175 noes, bled dry by Wall Street. plicated, there’s one simple underlying no yeses. On the American Recovery The vulgar excesses of Wall Street, cause: Unchecked greed. Our history and Reinvestment Act, 177 noes, no the bonuses, and the profits, and all teaches us the best way to focus this yeses. the rest are at the expense of working greed into something constructive is to Let’s look at the Senate. In two con- and middle class American families. have rules to protect consumers and in- secutive votes whether to bring Wall Ordinary Americans know that the fine vestors and to put cops on the beat to Street reform to the floor for a debate, print that big banks’ lawyers wrote in ensure those rules are enforced. But for 40 noes, no yeses. their credit card contracts, and their decades, this country has pursued a They’re not just the party of ‘‘no’’; mortgages, and their overdraft agree- policy of deregulation and lax enforce- they’re the party of no jobs for Amer- ments were filled with traps to take ment, believing that ‘‘greed is good’’ ica, for no energy security, for no Wall their income, and their life savings, and the ‘‘invisible hand of the market’’ Street reform, for no consumer protec- and who knows what worthless junk would protect hardworking Americans. tions against predatory practices, for Wall Street unloaded on their pension Well, that invisible hand did some- no equal pay for women in the work- funds. thing. It gave billions in bonuses to place, and the party of ‘‘no’’ for tax re- Every issue I have worked on I’ve those who used other people’s money lief for middle class families. compromised, but there comes a time like poker chips. When that game went If the Republicans don’t want to be to pick a side. I pick the side of work- bust, it slapped the American tax- called the party of ‘‘no,’’ they’d better ing and middle class Americans trying payers to the tune of 8 million jobs and learn to say ‘‘yes.’’ to make an honest living to support billions in bailouts. Now that this Con- themselves and their families. gress is moving to restore fairness and f accountability, there are those among WALL STREET REFORM f us who would prefer to huddle with b 1015 Wall Street and delay or dilute our ef- (Mr. DEUTCH asked and was given permission to address the House for 1 HEALTH CARE REFORM forts. The status quo is bailouts for too-big-to-fail banks. minute.) (Mr. STUPAK asked and was given I urge my colleagues, both here and Mr. DEUTCH. Mr. Speaker, as the permission to address the House for 1 in the Senate, to stand with the Amer- newest Member of Congress, I just minute and to revise and extend his re- ican people, pass reform, end bailouts. spent 6 months talking to voters every marks.) f day, and I can say with confidence that Mr. STUPAK. Mr. Speaker, I am there are a lot of partisan issues out pleased health care reform passed the WORKERS’ MEMORIAL DAY there. However, there was one issue House of Representatives and the Con- (Ms. TITUS asked and was given per- that united people of all political per- gress on March 21 so 32 million more mission to address the House for 1 suasions. That was our urgent need to

VerDate Mar 15 2010 00:10 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00003 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.004 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2942 CONGRESSIONAL RECORD — HOUSE April 28, 2010 prevent an economic meltdown from Record votes on postponed questions ‘‘(iii) the volume of payments made happening again. will be taken later. through the program or activity reviewed; ‘‘(iv) whether payments or payment eligi- I have only been in Congress for a f week, but I can say that the actions of bility decisions are made outside of the those turning Wall Street reform into a IMPROPER PAYMENTS ELIMI- agency, such as by a State or local govern- ment; political issue are no less appalling in NATION AND RECOVERY ACT OF 2009 ‘‘(v) recent major changes in program fund- person than they are on TV. For the ing, authorities, practices, or procedures; millions of seniors who lost so much of Mr. TOWNS. Mr. Speaker, I move to ‘‘(vi) the level, experience, and quality of their life savings, Wall Street reform is suspend the rules and pass the bill training for personnel responsible for mak- not a political issue. For the 8 million (H.R. 3393) to amend the Improper Pay- ing program eligibility determinations or workers who lost their jobs, Wall ments Information Act of 2002 (31 certifying that payments are accurate; and Street reform is not a political issue. U.S.C. 3321 note) in order to prevent ‘‘(vii) significant deficiencies in the audit And for the 2.2 million families who the loss of billions in taxpayer dollars, report of the agency or other relevant man- lost their homes, Wall Street reform is as amended. agement findings that might hinder accurate payment certification.’’. not a political issue. For them Wall The Clerk read the title of the bill. The text of the bill is as follows: (b) ESTIMATION OF IMPROPER PAYMENTS.— Street reform is about financial secu- Section 2 of the Improper Payments Infor- rity. It is about oversight and honesty. H.R. 3393 mation Act of 2002 (31 U.S.C. 3321 note) is And, most importantly, it is about ac- Be it enacted by the Senate and House of Rep- amended by striking subsection (b) and in- countability. resentatives of the United States of America in serting the following: Let’s put politics aside and do the job Congress assembled, ‘‘(b) ESTIMATION OF IMPROPER PAYMENTS.— SECTION 1. SHORT TITLE. With respect to each program and activity that the American people sent us here This Act may be cited as the ‘‘Improper identified under subsection (a), the head of to do by passing Wall Street reform Payments Elimination and Recovery Act of the relevant agency shall— and sending a tough bill to the Presi- 2010’’. ‘‘(1) produce a statistically valid estimate, dent’s desk. SEC. 2. IMPROPER PAYMENTS ELIMINATION AND or an estimate that is otherwise appropriate f RECOVERY. using a methodology approved by the Direc- (a) SUSCEPTIBLE PROGRAMS AND ACTIVI- tor of the Office of Management and Budget, COMPREHENSIVE IMMIGRATION TIES.—Section 2 of the Improper Payments of the improper payments made by each pro- REFORM Information Act of 2002 (31 U.S.C. 3321 note) gram and activity; and (Ms. JACKSON LEE of Texas asked is amended by striking subsection (a) and in- ‘‘(2) include those estimates in the accom- serting the following: and was given permission to address panying materials to the annual financial ‘‘(a) IDENTIFICATION OF SUSCEPTIBLE PRO- statement of the agency required under sec- the House for 1 minute.) GRAMS AND ACTIVITIES.— Ms. JACKSON LEE of Texas. Mr. tion 3515 of title 31, United States Code, or ‘‘(1) IN GENERAL.—The head of each agency similar provision of law and applicable guid- Speaker, I join my good friend from shall, in accordance with guidance pre- ance of the Office of Management and Budg- Florida in acknowledging that many of scribed by the Director of the Office of Man- et.’’. the issues that we debate on this floor agement and Budget, periodically review all (c) REPORTS ON ACTIONS TO REDUCE IM- are not political issues. programs and activities that the relevant PROPER PAYMENTS.—Section 2 of the Im- So I ask America and I ask my agency head administers and identify all proper Payments Information Act of 2002 (31 friends on the other side of the aisle, programs and activities that may be suscep- U.S.C. 3321 note) is amended by striking sub- tible to significant improper payments. let us not internally implode over a de- section (c) and inserting the following: ‘‘(2) FREQUENCY.—Reviews under paragraph ‘‘(c) REPORTS ON ACTIONS TO REDUCE IM- cent human rights issue of immigra- (1) shall be performed for each program and PROPER PAYMENTS.—With respect to any pro- tion reform. While the economy is fail- activity that the relevant agency head ad- gram or activity of an agency with esti- ing and questions are being asked ministers during the year after which the mated improper payments under subsection about the integrity of Wall Street, let Improper Payments Elimination and Recov- (b), the head of the agency shall provide with us look to a reasoned response to im- ery Act of 2010 is enacted and at least once the estimate under subsection (b) a report on migration reform. Not troops on the every 3 fiscal years thereafter. For those what actions the agency is taking to reduce border, not the National Guard on the agencies already performing a risk assess- improper payments, including— border, but a real comprehensive immi- ment every 3 years, agencies may apply to ‘‘(1) a description of the causes of the im- the Director of the Office of Management proper payments, actions planned or taken gration reform that provides access to and Budget for a waiver from the require- to correct those causes, and the planned or this country, legalization, and the ment of the preceding sentence and continue actual completion date of the actions taken picking up of the criminals. We under- their 3-year risk assessment cycle. to address those causes; stand that. There is no time for poli- ‘‘(3) RISK ASSESSMENTS.— ‘‘(2) in order to reduce improper payments ticking and grandstanding on the ques- ‘‘(A) DEFINITION.—In this subsection the to a level below which further expenditures tion of students and families who want term ‘significant’ means— to reduce improper payments would cost to be reunited. ‘‘(i) except as provided under clause (ii), more than the amount such expenditures I am ashamed of the action of the that improper payments in the program or would save in prevented or recovered im- Governor of Arizona, but I sympathize activity in the preceding fiscal year may proper payments, a statement of whether the have exceeded— agency has what is needed with respect to— with the people. Let us have real bor- ‘‘(I) $10,000,000 of all program or activity ‘‘(A) internal controls; der security. I will be reintroducing my payments made during that fiscal year re- ‘‘(B) human capital; and legislation that asks for ramping up of ported and 2.5 percent of program outlays; or ‘‘(C) information systems and other infra- Customs and Border Patrol agents, ‘‘(II) $100,000,000; and structure; more technology to secure the border. ‘‘(ii) with respect to fiscal years following ‘‘(3) if the agency does not have sufficient Let’s do this the right way. The faith September 30th of a fiscal year beginning be- resources to establish and maintain effective community, the business community of fore fiscal year 2013 as determined by the Of- internal controls under paragraph (2)(A), a America, let’s talk reasonably. The fice of Management and Budget, that im- description of the resources the agency has business community should be talking proper payments in the program or activity requested in its budget submission to estab- in the preceding fiscal year may have ex- lish and maintain such internal controls; across America about the importance ceeded— ‘‘(4) program-specific and activity-specific of comprehensive immigration reform. ‘‘(I) $10,000,000 of all program or activity improper payments reduction targets that f payments made during that fiscal year re- have been approved by the Director of the ported and 1.5 percent of program outlays; or Office of Management and Budget; and ANNOUNCEMENT BY THE SPEAKER ‘‘(II) $100,000,000. ‘‘(5) a description of the steps the agency PRO TEMPORE ‘‘(B) SCOPE.—In conducting the reviews has taken to ensure that agency managers, The SPEAKER pro tempore. Pursu- under paragraph (1), the head of each agency programs, and, where appropriate, States ant to clause 8 of rule XX, the Chair shall take into account those risk factors and localities are held accountable through will postpone further proceedings that are likely to contribute to a suscepti- annual performance appraisal criteria for— today on motions to suspend the rules bility to significant improper payments, ‘‘(A) meeting applicable improper pay- such as— ments reduction targets; and on which a recorded vote or the yeas ‘‘(i) whether the program or activity re- ‘‘(B) establishing and maintaining suffi- and nays are ordered, or on which the viewed is new to the agency; cient internal controls, including an appro- vote incurs objection under clause 6 of ‘‘(ii) the complexity of the program or ac- priate control environment, that effec- rule XX. tivity reviewed; tively—

VerDate Mar 15 2010 00:10 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00004 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.006 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2943 ‘‘(i) prevent improper payments from being underpayments) under statutory, contrac- to significant improper payments under sec- made; and tual, administrative, or other legally appli- tion 2(a) of the Improper Payments Informa- ‘‘(ii) promptly detect and recover improper cable requirements; and tion Act of 2002 (31 U.S.C. 3321 note); payments that are made.’’. ‘‘(B) includes any payment to an ineligible (ii) shall implement this subsection in a (d) REPORTS ON ACTIONS TO RECOVER IM- recipient, any payment for an ineligible good manner designed to ensure the greatest fi- PROPER PAYMENTS.—Section 2 of the Im- or service, any duplicate payment, any pay- nancial benefit to the Government; and proper Payments Information Act of 2002 (31 ment for a good or service not received (ex- (iii) may conduct recovery audits directly, U.S.C. 3321 note) is amended— cept for such payments where authorized by by using other departments and agencies of (1) by striking subsection (e); law), and any payment that does not account the United States, or by procuring perform- (2) by redesignating subsections (d) and (f) for credit for applicable discounts. ance of recovery audits by private sector as subsections (f) and (g), respectively; and ‘‘(3) PAYMENT.—The term ‘payment’ means sources by contract (subject to the avail- (3) by inserting after subsection (c) the fol- any transfer or commitment for future ability of appropriations), or by any com- lowing: transfer of Federal funds such as cash, secu- bination thereof. ‘‘(d) REPORTS ON ACTIONS TO RECOVER IM- rities, loans, loan guarantees, and insurance (C) RECOVERY AUDIT CONTRACTS.—With re- PROPER PAYMENTS.—With respect to any im- subsidies to any non-Federal person or enti- spect to recovery audits procured by an proper payments identified in recovery au- ty, that is made by a Federal agency, a Fed- agency by contract— dits conducted under section 2(h) of the Im- eral contractor, a Federal grantee, or a gov- (i) subject to subparagraph (B)(iii), and ex- proper Payments Elimination and Recovery ernmental or other organization admin- cept to the extent such actions are outside Act of 2010 (31 U.S.C. 3321 note), the head of istering a Federal program or activity. the agency’s authority, as defined by section the agency shall provide with the estimate ‘‘(4) PAYMENT FOR AN INELIGIBLE GOOD OR 605(a) of the Contract Disputes Act of 1978 (41 under subsection (b) a report on all actions SERVICE.—The term ‘payment for an ineli- U.S.C. 605(a)), the head of the agency may the agency is taking to recover improper gible good or service’ shall include a pay- authorize the contractor to notify entities payments, including— ment for any good or service that is rejected (including persons) of potential overpay- ‘‘(1) a discussion of the methods used by under any provision of any contract, grant, ments made to such entities, respond to the agency to recover overpayments; lease, cooperative agreement, or any other questions concerning potential overpay- ‘‘(2) the amounts recovered, outstanding, funding mechanism.’’. ments, and take other administrative ac- and determined to not be collectable, includ- (f) GUIDANCE BY THE OFFICE OF MANAGE- tions with respect to overpayment claims ing the percent such amounts represent of MENT AND BUDGET.—Section 2 of the Im- made or to be made by the agency; and the total overpayments of the agency; proper Payments Information Act of 2002 (31 (ii) such contractor shall have no author- ‘‘(3) if a determination has been made that U.S.C. 3321 note) is amended by striking sub- ity to make final determinations relating to certain overpayments are not collectable, a section (g) (as redesignated by this section) whether any overpayment occurred and justification of that determination; and inserting the following: whether to compromise, settle, or terminate ‘‘(4) an aging schedule of the amounts out- ‘‘(g) GUIDANCE BY THE OFFICE OF MANAGE- overpayment claims. standing; MENT AND BUDGET.— (D) CONTRACT TERMS AND CONDITIONS.—The ‘‘(5) a summary of how recovered amounts ‘‘(1) IN GENERAL.—Not later than 6 months agency shall include in each contract for have been disposed of; after the date of enactment of the Improper procurement of performance of a recovery ‘‘(6) a discussion of any conditions giving Payments Elimination and Recovery Act of audit a requirement that the contractor rise to improper payments and how those 2010, the Director of the Office of Manage- shall— conditions are being resolved; and ment and Budget shall prescribe guidance for (i) provide to the agency periodic reports ‘‘(7) if the agency has determined under agencies to implement the requirements of on conditions giving rise to overpayments section 2(h) of the Improper Payments this section. The guidance shall not include identified by the contractor and any rec- Elimination and Recovery Act of 2010 (31 any exemptions to such requirements not ommendations on how to mitigate such con- U.S.C. 3321 note) that performing recovery specifically authorized by this section. ditions; and audits for any applicable program or activity ‘‘(2) CONTENTS.—The guidance under para- (ii) notify the agency of any overpayments is not cost effective, a justification for that graph (1) shall prescribe— identified by the contractor pertaining to determination. ‘‘(A) the form of the reports on actions to the agency or to any other agency or agen- ‘‘(e) GOVERNMENTWIDE REPORTING OF IM- reduce improper payments, recovery actions, cies that are beyond the scope of the con- PROPER PAYMENTS AND ACTIONS TO RECOVER and governmentwide reporting; and tract. IMPROPER PAYMENTS.— ‘‘(B) strategies for addressing risks and es- (E) AGENCY ACTION FOLLOWING NOTIFICA- ‘‘(1) REPORT.—Each fiscal year the Director tablishing appropriate prepayment and TION.—An agency shall take prompt and ap- of the Office of Management and Budget postpayment internal controls.’’. propriate action in response to a report or shall submit a report with respect to the pre- (g) DETERMINATIONS OF AGENCY READINESS notification by a contractor under subpara- ceding fiscal year on actions agencies have FOR OPINION ON INTERNAL CONTROL.—Not graph (D)(ii), to collect overpayments and taken to report information regarding im- later than 1 year after the date of enactment shall forward to other agencies any informa- proper payments and actions to recover im- of this Act, the Director of the Office of Man- tion that applies to such agencies. proper overpayments to— agement and Budget shall develop— (3) DISPOSITION OF AMOUNTS RECOVERED.— ‘‘(A) the Committee on Homeland Security (1) specific criteria as to when an agency (A) IN GENERAL.—Amounts collected by and Governmental Affairs of the Senate; and should initially be required to obtain an agencies each fiscal year through recovery ‘‘(B) the Committee on Oversight and Gov- opinion on internal control over financial re- audits conducted under this subsection shall ernment Reform of the House of Representa- porting; and be treated in accordance with this para- tives. (2) criteria for an agency that has dem- graph. The agency head shall determine the ‘‘(2) CONTENTS.—Each report under this onstrated a stabilized, effective system of in- distribution of collected amounts, less subsection shall include— ternal control over financial reporting, amounts needed to fulfill the purposes of sec- ‘‘(A) a summary of the reports of each whereby the agency would qualify for a tion 3562(a) of title 31, United States Code, in agency on improper payments and recovery multiyear cycle for obtaining an audit opin- accordance with subparagraphs (B), (C), and actions submitted under this section; ion on internal control over financial report- (D). ‘‘(B) an identification of the compliance ing, rather than an annual cycle. (B) USE FOR FINANCIAL MANAGEMENT IM- status of each agency to which this Act ap- (h) RECOVERY AUDITS.— PROVEMENT PROGRAM.—Not more than 25 per- plies; (1) DEFINITION.—In this subsection, the cent of the amounts collected by an agency ‘‘(C) governmentwide improper payment term ‘‘agency’’ has the meaning given under through recovery audits— reduction targets; and section 2(f) of the Improper Payments Infor- (i) shall be available to the head of the ‘‘(D) a discussion of progress made towards mation Act of 2002 (31 U.S.C. 3321 note) as re- agency to carry out the financial manage- meeting governmentwide improper payment designated by this Act. ment improvement program of the agency reduction targets.’’. (2) IN GENERAL.— under paragraph (4); (e) DEFINITIONS.—Section 2 of the Improper (A) CONDUCT OF AUDITS.—Except as pro- (ii) may be credited, if applicable, for that Payments Information Act of 2002 (31 U.S.C. vided under paragraph (4) and if not prohib- purpose by the head of an agency to any 3321 note) is amended by striking subsections ited under any other provision of law, the agency appropriations and funds that are (f) (as redesignated by this section) and in- head of each agency shall conduct recovery available for obligation at the time of collec- serting the following: audits with respect to each program and ac- tion; and ‘‘(f) DEFINITIONS.—In this section: tivity of the agency that expends $1,000,000 or (iii) shall be used to supplement and not ‘‘(1) AGENCY.—The term ‘agency’ means an more annually if conducting such audits supplant any other amounts available for executive agency, as that term is defined in would be cost-effective. that purpose and shall remain available until section 102 of title 31, United States Code. (B) PROCEDURES.—In conducting recovery expended. ‘‘(2) IMPROPER PAYMENT.—The term ‘im- audits under this subsection, the head of an (C) USE FOR ORIGINAL PURPOSE.—Not more proper payment’— agency— than 25 percent of the amounts collected by ‘‘(A) means any payment that should not (i) shall give priority to the most recent an agency— have been made or that was made in an in- payments and to payments made in any pro- (i) shall be credited to the appropriation or correct amount (including overpayments and gram or programs identified as susceptible fund, if any, available for obligation at the

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time of collection for the same general pur- (A) IN GENERAL.—(i) Except as provided in (C) if required, publishes improper pay- poses as the appropriation or fund from clause (ii), subchapter VI of chapter 35 of ments estimates for all programs and activi- which the overpayment was made; title 31, United States Code, is repealed, ties identified under section 2(b) of the Im- (ii) shall remain available for the same pe- (ii) Section 3562(a) of title 31, United States proper Payments Information Act of 2002 (31 riod and purposes as the appropriation or Code, shall continue in effect, except that U.S.C. 3321 note) in the accompanying mate- fund to which credited; and references in such section 3562(a) to pro- rials to the annual financial statement; (iii) if the appropriation from which the grams carried out under section 3561 of such (D) publishes programmatic corrective ac- overpayment was made has expired, shall be title, shall be interpreted to mean programs tion plans prepared under section 2(c) of the newly available for the same time period as carried out under section 2(h) of this Act. Improper Payments Information Act of 2002 the funds were originally available for obli- (B) TECHNICAL AND CONFORMING AMEND- (31 U.S.C. 3321 note) that the agency may gation, except that any amounts that are re- MENTS.— have in the accompanying materials to the covered more than five fiscal years from the (i) TABLE OF SECTIONS.—The table of sec- annual financial statement; tions for chapter 35 of title 31, United States last fiscal year in which the funds were (E) publishes improper payments reduction Code, is amended by striking the matter re- available for obligation shall be deposited in targets established under section 2(c) of the lating to subchapter VI. the Treasury as miscellaneous receipts, ex- Improper Payments Information Act of 2002 (ii) DEFINITION.—Section 3501 of title 31, cept that in the case of recoveries of over- (31 U.S.C. 3321 note) that the agency may United States Code, is amended by striking have in the accompanying materials to the payments that are made from trust or spe- ‘‘and subchapter VI of this title’’. cial fund accounts, such amounts shall re- annual financial statement for each program (iii) HOMELAND SECURITY GRANTS.—Section vert to those accounts. assessed to be at risk, and is meeting such 2022(a)(6) of the Homeland Security Act of targets; and (D) USE FOR INSPECTOR GENERAL ACTIVI- 2002 (6 U.S.C. 612(a)(6)) is amended by strik- (F) has reported an improper payment rate TIES.—Not more than 5 percent of the ing ‘‘(as that term is defined by the Director of less than 10 percent for each program and amounts collected by an agency shall be of the Office of Management and Budget activity for which an estimate was published available to the Inspector General of that under section 3561 of title 31, United States under section 2(b) of the Improper Payments agency— Code)’’ and inserting ‘‘under section 2(h) of Information Act of 2002 (31 U.S.C. 3321 note). (i) for— the Improper Payments Elimination and Re- (b) ANNUAL COMPLIANCE REPORT BY INSPEC- (I) the Inspector General to carry out this covery Act of 2010 (31 U.S.C. 3321 note)’’. TORS GENERAL OF AGENCIES.—Each fiscal Act; or (7) RULE OF CONSTRUCTION.—Except as pro- year, the Inspector General of each agency (II) any other activities of the Inspector vided under paragraph (5), nothing in this shall determine whether the agency is in General relating to investigating improper section shall be construed as terminating or compliance and submit a report on that de- payments or auditing internal controls asso- in any way limiting authorities that are oth- termination to— ciated with payments; and erwise available to agencies under existing (1) the head of the agency; (ii) shall remain available for the same pe- provisions of law to recover improper pay- (2) the Committee on Homeland Security riod and purposes as the appropriation or ments and use recovered amounts. and Governmental Affairs of the Senate; fund to which credited. (i) REPORT ON RECOVERY AUDITING.—Not (3) the Committee on Oversight and Gov- (E) REMAINDER.—Amounts collected that later than 2 years after the date of the enact- ernmental Reform of the House of Represent- are not applied in accordance with subpara- ment of this Act, the Chief Financial Offi- atives; and graphs (A), (B), (C), or (D) shall be deposited cers Council established under section 302 of (4) the Comptroller General. in the Treasury as miscellaneous receipts, the Chief Financial Officers Act of 1990 (31 except that in the case of recoveries of over- U.S.C. 901 note), in consultation with the (c) REMEDIATION.— payments that are made from trust or spe- Council of Inspectors General on Integrity (1) NONCOMPLIANCE.— cial fund accounts, such amounts shall re- and Efficiency established under section 7 of (A) IN GENERAL.—If an agency is deter- mined by the Inspector General of that agen- vert to those accounts. the Inspector General Reform Act of 2009 (Public Law 110–409) and recovery audit ex- cy not to be in compliance under subsection (F) DISCRETIONARY AMOUNTS.—This para- perts, shall conduct a study of— (b) in a fiscal year, the head of the agency graph shall apply only to recoveries of over- (1) the implementation of subsection (h); shall submit a plan to Congress describing payments that are made from discretionary (2) the costs and benefits of agency recov- the actions that the agency will take to appropriations (as that term is defined by ery audit activities, including those under come into compliance. paragraph 7 of section 250 of the Balanced subsection (h), and including the effective- (B) PLAN.—The plan described under sub- Budget and Emergency Deficit Control Act ness of using the services of— paragraph (A) shall include— of 1985) and shall not apply to recoveries of (A) private contractors; (i) measurable milestones to be accom- overpayments that are made from discre- (B) agency employees; plished in order to achieve compliance for tionary amounts that were appropriated (C) cross-servicing from other agencies; or each program or activity; prior to enactment of this Act. (D) any combination of the provision of (ii) the designation of a senior agency offi- (G) APPLICATION.—This paragraph shall not services described under subparagraphs (A) cial who shall be accountable for the apply to recoveries of overpayments if the through (C); and progress of the agency in coming into com- appropriation from which the overpayment (3) submit a report on the results of the pliance for each program or activity; and was made has not expired. study to— (iii) the establishment of an accountability (4) FINANCIAL MANAGEMENT IMPROVEMENT (A) the Committee on Homeland Security mechanism, such as a performance agree- PROGRAM.— and Governmental Affairs of the Senate; ment, with appropriate incentives and con- (A) REQUIREMENT.—The head of each agen- (B) the Committee on Oversight and Gov- sequences tied to the success of the official cy shall conduct a financial management im- ernment Reform of the House of Representa- designated under clause (ii) in leading the ef- provement program, consistent with rules tives; and forts of the agency to come into compliance prescribed by the Director of the Office of (C) the Comptroller General. for each program and activity. Management and Budget. SEC. 3. COMPLIANCE. (2) NONCOMPLIANCE FOR 2 FISCAL YEARS.— (B) PROGRAM FEATURES.—In conducting the (a) DEFINITIONS.—In this section: (A) IN GENERAL.—If an agency is deter- program, the head of the agency— (1) AGENCY.—The term ‘‘agency’’ has the mined by the Inspector General of that agen- (i) shall, as the first priority of the pro- meaning given under section 2(f) of the Im- cy not to be in compliance under subsection gram, address problems that contribute di- proper Payments Information Act of 2002 (31 (b) for 2 consecutive fiscal years for the same rectly to agency improper payments; and U.S.C. 3321 note) as redesignated by this Act. program or activity, and the Director of the (ii) may seek to reduce errors and waste in (2) ANNUAL FINANCIAL STATEMENT.—The Office of Management and Budget deter- other agency programs and operations. term ‘‘annual financial statement’’ means mines that additional funding would help the (5) PRIVACY PROTECTIONS.—Any nongovern- the annual financial statement required agency come into compliance, the head of mental entity that, in the course of recovery under section 3515 of title 31, United States the agency shall obligate additional funding, auditing or recovery activity under this sub- Code, or similar provision of law. in an amount determined by the Director, to section, obtains information that identifies (3) COMPLIANCE.—The term ‘‘compliance’’ intensified compliance efforts. an individual or with respect to which there means that the agency— (B) FUNDING.—In providing additional fund- is a reasonable basis to believe that the in- (A) has published an annual financial ing described under subparagraph (A), the formation can be used to identify an indi- statement for the most recent fiscal year head of an agency shall use any reprogram- vidual, may not disclose the information for and posted that report and any accom- ming or transfer authority available to the any purpose other than such recovery audit- panying materials required under guidance agency. If after exercising that reprogram- ing or recovery activity and governmental of the Office of Management and Budget on ming or transfer authority additional fund- oversight of such activity, unless disclosure the agency website; ing is necessary to obligate the full level of for that other purpose is authorized by the (B) if required, has conducted a program funding determined by the Director of the individual to the executive agency that con- specific risk assessment for each program or Office of Management and Budget under sub- tracted for the performance of the recovery activity that conforms with section 2(a) the paragraph (A), the agency shall submit a re- auditing or recovery activity. Improper Payments Information Act of 2002 quest to Congress for additional reprogram- (6) OTHER RECOVERY AUDIT REQUIREMENTS.— (31 U.S.C. 3321 note); and ming or transfer authority.

VerDate Mar 15 2010 00:10 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00006 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.005 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2945 (3) REAUTHORIZATION AND STATUTORY PRO- The Office of Management and Budg- tremely large but smaller than today POSALS.—If an agency is determined by the et recently reported the Federal Gov- programs, I hope that we will see that Inspector General of that agency not to be in ernment made $98 billion in improper we must find all, all, improper pay- compliance under subsection (b) for more and overpayments last year. This is a ments in government and set them than 3 consecutive fiscal years for the same program or activity, the head of the agency staggering amount and completely un- right. The American people expect no shall, not later than 30 days after such deter- acceptable. No family or business in less. mination, submit to Congress— this great country would tolerate being Mr. Speaker, I reserve the balance of (A) reauthorization proposals for each pro- charged twice or even overbilled for my time. gram or activity that has not been in com- anything and neither should the gov- Mr. TOWNS. Mr. Speaker, I yield 5 pliance for 3 or more consecutive fiscal ernment. We need to do everything we minutes to the sponsor of the bill, Mr. years; or can to ensure that the government PATRICK MURPHY, who is really respon- (B) proposed statutory changes necessary spends every tax dollar in the most re- sible for our being here today. He has to bring the program or activity into compli- sponsible way possible. In fact, we have worked so hard on this legislation, and, ance. of course, as I have said to many staff- (d) COMPLIANCE ENFORCEMENT PILOT PRO- an obligation to the taxpayers to fight ers along the way, this makes a whole GRAMS.— waste, fraud, and abuse and to ensure (1) IN GENERAL.—The Director of the Office that if the government overpays for lot of sense, and I want to thank him, of Management and Budget may establish 1 something, it has the means to recover and, of course, Mr. PLATTS and people or more pilot programs which shall test po- those precious tax dollars. that have worked on this and kept it tential accountability mechanisms with ap- The bill we are now considering, H.R. going. propriate incentives and consequences tied 3393, the Improper Payments Elimi- Mr. PATRICK J. MURPHY of Penn- to success in ensuring compliance with this sylvania. I thank the chairman for Act and eliminating improper payments. nation and Recovery Act of 2009, will provide the government with the yielding. (2) REPORT.—Not later than 5 years after I would like to start off by thanking means to fulfill this obligation to the the date of enactment of this Act, the Direc- my colleague from across the aisle, tor of the Office of Management and Budget taxpayers. Congressman BRIAN BILBRAY from Cali- shall submit a report to Congress on the Mr. Speaker, I reserve the balance of fornia, for partnering with me on this findings associated with any pilot programs my time. conducted under paragraph (1). The report Mr. ISSA. Mr. Speaker, I yield myself bipartisan bill for the past 2 years. shall include any legislative or other rec- such time as I may consume. Today is a great day for our country, ommendations that the Director determines Mr. Speaker, this is an important and I want to also highlight his part- necessary. and bipartisan bill being brought to the nership and his commitment to fiscal (e) REPORT ON CHIEF FINANCIAL OFFICERS floor today. It has been well thought responsibility. It’s been an honor to ACT OF 1990.—Not later than 1 year after the work with you, sir. date of the enactment of this Act, the Chief out and well crafted, and I want to I also want to thank Senator TOM Financial Officers Council established under thank Mr. MURPHY and Mr. BILBRAY for CARPER for his tireless efforts in ad- section 302 of the Chief Financial Officers their diligent work on this subject, vancing this legislation in the Senate. Act of 1990 (31 U.S.C. 901 note) and the Coun- also Mr. TODD PLATTS, who has worked Mr. Speaker, most of us would be cil of Inspectors General on Integrity and Ef- in this area for a number of years and outraged if we realized that our phone ficiency established under section 7 of the In- has brought to light this failure of gov- spector General Reform Act of 2009 (Public company charged twice for last ernment. Law 110–409), in consultation with a broad month’s bill or that we paid for car re- Mr. Speaker, when there are $2 tril- cross-section of experts and stakeholders in pairs that were never made to our car. lion worth of payments being made and Government accounting and financial man- We would figure out the problem, we $100 billion worth of improper pay- agement shall— would get our money back, and we (1) jointly examine the lessons learned dur- ments being noted, one would say we would make sure that that never hap- ing the first 20 years of implementing the must be doing a good job of finding im- pened again. Chief Financial Officers Act of 1990 (31 U.S.C. proper payments that would allow us 901) and identify reforms or improvements, if But every day the Federal Govern- to get to the bottom of this large ment either overpays or pays twice the any, to the legislative and regulatory com- amount of money. But, Mr. Speaker, pliance framework for Federal financial amount for products or services it was management that will optimize Federal without this corrective action, it is supposed to. But until now, there was agency efforts to— clear that what we are seeing is the tip too little action and even less outrage. (A) publish relevant, timely, and reliable of a very large iceberg. reports on Government finances; and Under the current law, since you b 1030 (B) implement internal controls that miti- must have the greater of both $10 mil- According to the Office of Manage- gate the risk for fraud, waste, and error in lion and 2.5 percent in order to trigger ment and Budget, in fiscal year 2009, Government programs; and reporting, this only really triggers $10 Federal agencies made nearly $98 bil- (2) jointly submit a report on the results of million events with very small agen- the examination to— lion in improper payments. Let me re- (A) the Committee on Homeland Security cies. As we look at the Department of peat that: In 2009, Federal agencies and Governmental Affairs of the Senate; Defense and other large agencies, real- made nearly $98 billion in improper (B) the Committee on Oversight and Gov- istically the 2.5 percent becomes the payments in just 1 fiscal year. ernment Reform of the House of Representa- trigger. If I were able to, with a stroke Mr. Speaker, numbers get thrown tives; and of a pen, change things from day one, I around in this Chamber all the time. (C) the Comptroller General. would look and say the American peo- So let me put this number in context. The SPEAKER pro tempore. Pursu- ple consider not only $10 million a lot This is more than double the budget for ant to the rule, the gentleman from of money, but $2 million and $1 million, the Department of Homeland Security New York (Mr. TOWNS) and the gen- $100,000. and triple the budget of the National tleman from California (Mr. ISSA) each We cannot quickly make those kinds Institutes of Health. These improper will control 20 minutes. of changes in reporting, I am told. payments occur as a result of fraud or The Chair recognizes the gentleman However, today we are taking a fairly from poor fiscal management systems from New York. significant step. By automatically hav- that do not detect or prevent mistakes GENERAL LEAVE ing anytime when $100 million is at before Federal dollars are already out Mr. TOWNS. Mr. Speaker, I ask stake be reported and by reducing from the door. This bill—our bill—the Im- unanimous consent that all Members 2.5 to 1.5 percent the program outlays, proper Payments Elimination and Re- have 5 legislative days in which to re- we are catching an unknown amount of covery Act, will help better identify, vise and extend their remarks. greater waste, fraud, and abuse in gov- reduce, and eliminate these improper The SPEAKER pro tempore. Is there ernment. These improper payments payments. It will cut down on fraud objection to the request of the gen- will undoubtedly rise, perhaps double, and waste by requiring agencies to de- tleman from New York? perhaps triple in reporting as a result velop and implement action plans to There was no objection. of this new law, but it is not enough. avoid improper payments. Mr. TOWNS. Mr. Speaker, I yield my- As this reporting becomes more wide- Mr. Speaker, no business owner self such time as I may consume. spread and we’re able to investigate ex- would allow an employee to get away

VerDate Mar 15 2010 00:10 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00007 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.005 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2946 CONGRESSIONAL RECORD — HOUSE April 28, 2010 with these mistakes. American tax- sible, needs to do more and, frankly, agencies more accountable for properly payers should not have to foot the bill demand more from Washington and the managing taxpayers’ funds. The bill re- when the government mismanages bureaucracy and less from the Amer- quires agencies to develop and report their hard-earned dollars. That is why ican people when it comes to account- corrective action plans based on meas- this legislation has strong measures to ability. ured error rates and creates incentives hold those accountable for failing to We’re talking about the fact that we for meeting their goals and penalties protect taxpayer dollars. Perhaps most need now to lower the thresholds of re- for failure to meet their goals. Impor- importantly, Mr. Speaker, this legisla- porting so the problem can be more tantly, the bill also gives the agencies tion would force the Federal Govern- transparent. We need to make sure the means to go after the funds that ment to reclaim more money that was that we hold those who are trusted in they have overpaid, which will make improperly sent. the Departments with the American the taxpayers, agencies, programs, and It’s pretty simple. If a family in Bris- taxpayers’ money to do more, report activities which relied on those appro- tol, Bucks County, found out that they more, and be more accountable for the priations whole. were getting double billed for their car mismanagement of those funds. Frank- We are living in a time, Mr. Speaker, payments or paying for groceries they ly, we need to demand more recovery of when our government is under extreme never got, they’d fix the problem, get the money when we detect these funds fiscal demands, and we need to do ev- their money back, and would not allow are being misappropriated. erything possible to ensure that every it to happen again. My bill ensures Frankly, right now, I think the out- tax dollar goes to where it is needed. that the Federal Government holds rage across this country is something To ensure this takes place, we need to itself to the same standard of fiscal re- that is healthy for all of us—Demo- provide our Federal agencies with the sponsibility that will save taxpayers crats, Republicans, Independents. We tools to properly manage their spend- billions of dollars. should not be asking, Why are the ing. We also need to give the agencies Mr. Speaker, there is no question American people so outraged? We’re the ability to follow through with their that we must do more to tackle our na- saying, Why didn’t we realize this ear- oversight and provide them with the tional debt. While the debate grows in- lier and sooner so that that outrage did ability to recover erroneous payments. creasingly partisan, the solutions seem not just show up in screaming town However, we cannot stop there. We sometimes out of political reach. But hall meetings and protests around this must do everything that we can to en- this proposal is not. This commonsense country? sure that Federal agencies who make measure is something that Democrats I want to thank Mr. MURPHY for join- improper payments fix the problem and Republicans have come together to ing with me at showing the American that allows the improper payments to support. Cutting wasteful spending and people there are some of us that hear it take place. At the end of the day, this growing our economy will lead us out loud and clear. We do not blame the bill amends current law to require of this recession and help put us on a American people for being outraged. more accountability through reports, path toward fiscal responsibility. I We blame ourselves and the Wash- plans, definitions, clarification of re- urge all of my colleagues to vote ‘‘yes’’ ington establishment for not address- sponsibility, allocation of funds, and oversight. and pass this legislation on behalf of ing this issue before and not moving Again, I would like to thank my col- the American taxpayer. forward. leagues, Representatives MURPHY, Mr. ISSA. At this time I would yield So I, again, thank the chairman and BILBRAY, ISSA, and others, for working 3 minutes to the coauthor of the bill, the ranking member. I thank my co- together in a truly, truly bipartisan the gentleman from California (Mr. author on this. And I think, Mr. Speak- manner to get this piece of important BILBRAY). er, this is more than just money. We’re Mr. BILBRAY. I would like to thank legislation to the House floor. H.R. 3393 talking about we have taken hard- is a commonsense, good government the coauthor of the bill, Mr. MURPHY, earned resources from hardworking bill, and I encourage my colleagues to and especially Chairman TOWNS and Americans and we have been trusted in join me in supporting it. Ranking Member ISSA for bringing this the past; and we have violated that I reserve the balance of my time. item up today. I appreciate the ability trust. Mr. ISSA. Mr. Speaker, I yield myself to address it. The SPEAKER pro tempore. The such time as I may consume. Mr. Speaker, all across America, time of the gentleman has expired. Mr. Speaker, in closing, I’d like to Americans are speaking out loudly. In Mr. ISSA. Mr. Speaker, I yield the share with you something that hap- fact, there’s a degree of dismay for gentleman 30 additional seconds. pened this morning. I was on C–SPAN those of us in Washington when we go Mr. BILBRAY. This bill will start on and a woman named Betty called in home to see the outrage that is coming a pattern towards earning the trust and was very concerned that we were out from the average taxpayer in this back from the American people. But we not working on a bipartisan basis; that country. I think we are just now really do not have a right to ask them to there was no consensus or compromise; realizing that there is a justification trust us with more money until we that we were paralyzed. It’s sometimes for the outrage and the strong feelings. prove to them that we can correct this hard to answer somebody on the other Basically, as we tell the American peo- problem and take care of the money end of a telephone line, but I would ple that they must give more and that that we have already been endowed like to today take note that this is an we are going to take more, they are with. So I ask that this body pass this example of the dozens of times every saying, No way. You have not earned bill and address it. It’s a small step in week that we come together, the chair- the right to be trusted with our tax the direction that America has asked man and myself, members of the com- money. us to go to for far too long. mittee, and we find things we can agree Mr. MURPHY and I have been able to Mr. TOWNS. I yield myself such time on that are good for America, the com- identify one of those items that the as I may consume. mon good, and they will not usually be American people have been calling for The Improper Payments Elimination noted. for a long time. How do we explain to and Recovery Act, H.R. 3393, provides So today I would hope that we all our constituents that we are giving the Federal Government with the tools note that—and for Betty who called in away inappropriately twice as much needed to prevent mistakes and over- this morning—that in fact this is an money as we spend to defend their payments in the first place and recover example where we can find com- neighborhoods from terrorism when it funds that are paid in error. That’s the promise. We can find a win-win for the comes to homeland security? How do reason why I’d like to salute Congress- American people. I would hope that we we have the gall to ask them to trust man ISSA of California, Congressman would do more of it. Chairman TOWNS us with more money when we have this BILBRAY, and of course Congressman has been good at looking for those ex- kind of mismanagement of public PLATTS and Congressman MURPHY for amples, and I pledge to be better at funds—not just recently, but histori- the outstanding job that they have looking for opportunities like this. I’d cally. And I think this is one place we done on this legislation. like to, lastly, thank Leader HOYER can, in a bipartisan effort, admit that The bill we are considering today and Leader BOEHNER for the help they Washington needs to be more respon- takes the next step and makes Federal gave us in expediting this to the floor.

VerDate Mar 15 2010 03:25 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00008 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.009 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2947 With that, Mr. Speaker, I urge sup- New York (Mr. TOWNS) and the gen- new mailing which includes the same port and passage of the bill and yield tleman from California (Mr. ISSA) each deceptive practices. The new mailing is back the balance of my time. will control 20 minutes. also labeled a census, and it does not Mr. TOWNS. Mr. Speaker, let me just The Chair recognizes the gentleman include a return address or identify the make this statement, and I will yield from New York. sender as the RNC, as required by law, back as well. GENERAL LEAVE Mr. Speaker. One of these offensive Let me again say how glad I am that Mr. TOWNS. Mr. Speaker, I ask mailings is dated April 12, only 5 days we are taking the time to fight waste, unanimous consent that all Members after the President signed H.R. 4621 fraud, and abuse of our precious tax may have 5 legislative days in which to into law. Apparently, the RNC cannot dollars. With this measure, I want to revise and extend their remarks. even let 1 week go by without deceiv- thank the gentleman from California The SPEAKER pro tempore. Is there ing the American public. for his comments and the fact that we objection to the request of the gen- Despite the unanimous action of Con- are working together to get rid of tleman from New York? gress, the RNC continues to act in defi- waste, fraud, and abuse here. This is a There was no objection. ance of Congress and plain common classic example. I want to thank him Mr. TOWNS. Mr. Speaker, I yield my- sense and fairness. These mailings con- for working with me and the relation- self such time as I may consume. tinue to mislead citizens, confuse vot- ship that we have had over the years in I rise in support of H.R. 5148, the bill ers, and annoy recipients. terms of doing these kinds of things. to further prohibit deceptive mailings On that note, Mr. Speaker, I reserve I yield back the balance of my time. using the word ‘‘census.’’ Only a few the balance of my time. The SPEAKER pro tempore. The weeks ago, on March 10 to be exact, the Mr. ISSA. Mr. Speaker, I yield myself question is on the motion offered by House acted unanimously to deal with such time as I may consume. the gentleman from New York (Mr. the misleading fundraising mail de- I rise in support of H.R. 5148. Not sur- TOWNS) that the House suspend the signed to look like it is from the Cen- prisingly, I’m the author of it. I in- rules and pass the bill, H.R. 3393, as sus Bureau. Congresswoman MALONEY sisted on being the author because it amended. introduced H.R. 4621, the Prevent De- was the right thing to do and because The question was taken; and (two- ceptive Census Look Alike Mailing there needed to be a message sent loud thirds being in the affirmative) the Act, which was originally cosponsored and clear. Deceptive advertising is al- rules were suspended and the bill, as by me and Congressman CLAY, chair- ready bad enough in America today. amended, was passed. man of the subcommittee with juris- We often receive things that look like A motion to reconsider was laid on diction over the census. Congress- your credit card bill when, in fact, the table. woman MALONEY and Congressman they’re an offer to buy or to get some- f CLAY are longtime supporters of the thing or, in fact, to apply for a credit CLARIFY DECEPTIVE CENSUS census, and they have worked hard to card. We’ve all received cards that look MAILINGS LAW make sure we have an accurate count like you’re already getting a card in 2010. when, in fact, it’s John Doe on the card Mr. TOWNS. Mr. Speaker, I move to H.R. 4621 was also cosponsored by the and it’s only the opportunity to spend suspend the rules and pass the bill ranking member of the committee, money to get the real card. (H.R. 5148) to amend title 39, United Congressman ISSA of California, as well But when it comes to the census, States Code, to clarify the instances in as the ranking member of the sub- there is no separation between Repub- which the term ‘‘census’’ may appear committee with jurisdiction over the licans and Democrats and Independ- on mailable matter. postal service, Congressman JASON ents. There is no separation between The Clerk read the title of the bill. CHAFFETZ. I thank them for their sup- the House and the Senate. The sanctity The text of the bill is as follows: port and for helping us to move it to of this constitutional responsibility to H.R. 5148 the floor today. Be it enacted by the Senate and House of Rep- The goal of the bill was simple. The get it right, to count everyone, cannot resentatives of the United States of America in United States Census, currently under be allowed to be interfered with by Congress assembled, way, is a critical source of information anyone’s attempt to raise money. SECTION 1. REQUIREMENT FOR MAIL BEARING for America’s future. Regrettably, When the earlier bill was passed—au- THE TERM ‘‘CENSUS’’ ON THE ENVE- thored by CAROLYN MALONEY and co- LOPE OR OUTSIDE COVER OR WRAP- scammers and con artists are trying to PER. hijack the word ‘‘census’’ to confuse sponsored by many of us—we thought (a) MATTER SOLICITING THE PURCHASE OF A citizens into opening and responding to we had ended this. As a matter of fact, PRODUCT OR SERVICE.—Section 3001(h) of title mail that is unrelated to the actual for all of us on both sides of the aisle, 39, United States Code, is amended— U.S. Census. We must protect the U.S. we believed then that an independent (1) in paragraph (1), by inserting ‘‘; or on agency, the post office, could have which the term ‘census’ is visible through Census from this kind of fraud. H.R. 4621 simply requires mailings which stopped that mail without the law. But the envelope or outside cover or wrapper’’ we wanted to make the intent of Con- after ‘‘or which bears the term ‘census’ on have the term ‘‘census’’ on the enve- the envelope or outside cover or wrapper’’; lope or cover to also include an accu- gress clear. By passing that bill, we and rate return address and the name of made the intent of Congress clear. We (2) in paragraph (2), by inserting ‘‘or mat- the sender on the envelope. all talked about deceptive advertising, ter on which the term ‘census’ is visible about people seeing something, think- through the envelope or outside cover or b 1045 ing it was from the Census Bureau, wrapper’’ after ‘‘In the case of matter bear- H.R. 4621 was drafted narrowly to thinking that, in fact, it was a census ing the term ‘census’ on the envelope or out- avoid the First Amendment concerns form. We crafted it in a way, as the side cover or wrapper’’. chairman said, that was intended not (b) MATTER SOLICITING INFORMATION OR and avoid interfering with the legiti- CONTRIBUTION OF FUNDS.—Section 3001(i) of mate use of the mail by nonprofit orga- to cross over anyone’s free speech title 39, United States Code, is amended— nizations. The bill was intended to pre- rights, including that through the (1) in paragraph (1), by inserting ‘‘; or on vent the deceptive use of look-alike mail. We achieved that. But lawyers at which the term ‘census’ is visible through mailings by requiring transparency and the Republican National Committee the envelope or outside cover or wrapper’’ disclosure. The House voted 416–0 to made a decision that the language of after ‘‘or which bears the term ‘census’ on pass H.R. 4621. The Senate passed the the bill was such that they could con- the envelope or outside cover or wrapper’’; same bill by unanimous consent. Not tinue having a piece of the successful and (2) in paragraph (2), by inserting ‘‘or mat- many bills pass this House unani- mailing go on. ter on which the term ‘census’ is visible mously, but this one did—both Houses. Let me make something very clear through the envelope or outside cover or That’s not something that happened here today: You cannot say we are be- wrapper’’ after ‘‘In the case of matter bear- real quick around here. You would yond the letter of the law when you ing the term ‘census’ on the envelope or out- think the message sent by that law was truly are within the intent of the law side cover or wrapper’’. very clear. and tell the American people it’s okay. The SPEAKER pro tempore. Pursu- Unfortunately, days after H.R. 4621 The four squares of the law may or ant to the rule, the gentleman from was signed into law, the RNC sent a may not have been violated by the

VerDate Mar 15 2010 00:10 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00009 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.010 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2948 CONGRESSIONAL RECORD — HOUSE April 28, 2010 NRCC. Most of us believe, as I said be- another partisan mailer, raising money words; her thoughts are our thoughts. fore, the post office could have stopped for the RNC in an envelope that looked Perhaps as a proud Republican, I can it before the law and certainly could like it was an official document for the do more than the thought she made. stop this after the law; and I have sent, Census Bureau. I suggest that Mr. Mr. Speaker, I want everyone to be along with my ranking subcommittee Steele contact the members of his own counted in the census. I want everyone member, a letter to the Postmaster en- party before he acts in such a way, be- to open their envelopes from the cen- couraging him to make that decision, cause the Republicans supported stop- sus. As a Republican, I am particularly as has Congresswoman MALONEY. ping using the census mailer in any sensitive that I don’t want Republicans Notwithstanding their eventual ac- way for partisan gain. to be undercounted. So I would advise, tion, we’re making it clear here today Specifically, this Congress passed as I will do, if I receive anything and it that we will plug any perceived loop- legislation to stop mailers, fake mail- looks like it’s from the census, I’m holes or any questions about whether ers, look-alike mailers, that made the going to open it. When I open it, if it’s or not you can or you cannot. The RNC document look official, like a census from the census, I’m going to fill it sent out mailings which certainly vio- document, to open it up. The RNC and out. If it’s not from the census, I’m lated the spirit of H.R. 4621. The mail- others were mailing fundraisers, acting going to throw it out because, ulti- ings contained text visible from out- like they were the census. This is mately, all of us, regardless of our side the envelope—not printed on the wrong. We passed legislation to stop it. party, should be indignant if we receive envelope, but effectively the same as It is now under review by the postal de- a request for money and we open it, be- printed on the envelope. partment. I have every bit of con- lieving it’s from the census, only to I would say to people who raise fidence that they will report that it find out that it is a request for money. money, whether it’s the Republican violated not only the spirit of the law The census does not ask us for National Committee, the Democratic but that it violated the law. money. They ask us for sensitive infor- National Committee, other political The ink wasn’t even dry from Presi- mation leading to a correct count of entities, or nonpolitical entities who dent Obama signing the legislation the American population, and from simply want to have their envelopes into law, and 5 days later the RNC that, Congress does its work to allo- opened for an opportunity to raise leadership sent out another partisan cate resources and, quite personally, to money or get a message out, don’t use mailer designed to look like the census allocate representation here in the the census. Don’t even think about to mislead people. This is dangerous House. So I, for one, will open all the using the census, because it’s wrong. If because the census is important to our mail and encourage all to open all the something is deceptive, then it is country. It is mandated by the Con- mail. And when you open it, do the wrong under the law that we already stitution. It must take place every 10 right thing if it’s from the census; do passed. It is wrong under the law that years, and the census numbers are the the right thing if it’s from somebody we expect this bill to represent. numbers that we use to decide rep- trying to fundraise. Let there be no So, Mr. Speaker, I would like to resentation. Practically every funding doubt, this is important to us in the thank the chairman, Congresswoman formula is based on census numbers. So House. We speak with one voice. We we want people to respond to the cen- MALONEY and Congressman JASON speak today. I suspect that they will sus. It’s important. To the degree that CHAFFETZ and, more importantly, the speak by tomorrow in the Senate, and leadership of the House, both Mr. mock, fake mailers are out there de- we will make sure that this cannot be ceiving people, it will drive down the BOEHNER and Mr. HOYER, because they allowed. made it possible for us to come to the participation. In closing, I did join with the gentle- So today we are united on enforcing floor quickly, get it to the Senate lady from New York and Mr. CHAFFETZ, the law in a bipartisan way. And I con- quickly, allow the Senate to deal with the gentleman from Utah, and the gratulate particularly the leadership it quickly so the President can make a chairman in calling on the Postmaster on the other side of the aisle that are to assert any jurisdiction he may be- statement for the second time in less speaking out against the leadership of lieve he can, which we believe he has, than a month. He shouldn’t have to do their own RNC, knowing that the cen- to stop mailings even if they’re going it. He does have to do it. We’re going to sus is important and should not be used make sure that while the census is un- for partisan reasons. So I compliment out today. But certainly within a mat- derway, that we not have anyone think ter of hours or days, we expect there STENY HOYER and Mr. BOEHNER for that this is a time where they can con- moving this to the floor immediately will be new power without any ques- tinue to do fundraising that ultimately so that another mailer doesn’t go out. tion that would allow for the holding of links itself to the ongoing census. This is a critical time for the census. that mail and its destruction. With that, I reserve the balance of It is in full swing. People are respond- So with that, Mr. Speaker, I encour- my time. ing to their mail. There will be enu- age passage of the bill. Mr. TOWNS. Mr. Speaker, I yield 5 merators. There will be additional I yield back the balance of my time. Mr. TOWNS. Mr. Speaker, I would minutes to the gentlewoman from New mail. To the extent that people are like to close by saying that we need to York, CAROLYN MALONEY, who has been fundraising with fake look-alike docu- very involved in this issue, of course, ments, it will drive down the participa- send the kind of message that will and to say to my colleague from Cali- tion in the federally mandated, con- make certain this stops. However, I do fornia, I really appreciate his involve- stitutionally required, and federally believe the new RNC mailings are ille- ment in this as well, the ranking mem- funded census. It is undercutting tax gal under current law. That’s number ber of the committee, Congressman dollars from the public that are trying one. This bill will clarify that any use ISSA. to get an accurate count and an accu- of the word ‘‘census’’ that is visible Mrs. MALONEY. I thank the gen- rate picture of where we are from the through the envelope would trigger a tleman for yielding and for his leader- census data. So this is a very impor- requirement to disclose the name and ship in so many ways, and I thank my tant action, and it’s one that we are return address of the sender. Congress good friend on the other side of the acting quickly on. And I hope the RNC should not have to act twice to make it aisle for his leadership on this issue and anyone else who wants to put out clear that it is wrong to imitate the and many others. a deceptive, misleading mailing will census, which is mandated by our Con- We are united today in a bipartisan stop and respect the law, respect the stitution. Unfortunately, the foolish- effort, Republicans and Democrats. We census, and respect this Congress. ness of the RNC has forced us to act are united in our efforts to stop the I thank my colleagues on both sides again. RNC from using census mailings for po- of the aisle. Mr. Speaker, I want to thank all of litical gain and to fundraise for the Mr. TOWNS. I reserve the balance of my colleagues, especially the ranking RNC. my time. member of the committee, Congress- Mr. Steele, in particular, the head of Mr. ISSA. Mr. Speaker, I yield myself woman MALONEY, and Mr. CHAFFETZ the RNC, 5 days after this Congress in such time as I may consume. and others, especially their staffs, who a bipartisan vote that was unanimous I would like to thank the gentlelady understand and recognize how impor- on both sides of the aisle, mailed out from New York. Her words are our tant the census is and that we should

VerDate Mar 15 2010 00:10 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00010 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.013 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2949 not get involved in any kind of trick- erect upon the Capitol Grounds such stage, Capitol grounds for the 29th annual Na- ery when it comes to the census be- sound amplification devices, and other re- tional Peace Officers’ Memorial Serv- cause there are so many things that de- lated structures and equipment, as may be ice to be held on May 15. The memorial pend on the census. Therefore, to play required for the event. service will be just one event of many around with it, to me, is so unfair when SEC. 4. ENFORCEMENT OF RESTRICTIONS. planned for Police Week to honor the you’re talking about, really, playing The Capitol Police Board shall provide for enforcement of the restrictions contained in sacrifices of the men and women who around with the lives of people, be- section 5104(c) of title 40, United States Code, serve in law enforcement and to give cause so many things are based on the concerning sales, advertisements, displays, special recognition of those who lost fact that the count, the count is so im- and solicitations on the Capitol Grounds, as their lives in the line of duty. portant. So it’s my hope that the RNC well as other restrictions applicable to the In 1962, Congress established Peace will recognize this and stop this trick- Capitol Grounds, in connection with the Officers Memorial Day and Police ery, because there is no place, no time event. Week through a joint resolution of do we need that today. The SPEAKER pro tempore. Pursu- Congress. And, in 1982, the first official b 1100 ant to the rule, the gentleman from Il- memorial service took place in Senate linois (Mr. COSTELLO) and the gen- We need to make certain that every- Park with 125 people gathered to honor tleman from Wisconsin (Mr. PETRI) 91 officers. Since that time, law en- body fills out their census form, and each will control 20 minutes. gets it back in as soon as possible. forcement from around the world have The Chair recognizes the gentleman come to D.C. to participate in week- Mr. Speaker, I yield back the balance from Illinois. of my time. long events to honor the brave service The SPEAKER pro tempore. The GENERAL LEAVE and sacrifice of officers who have fallen question is on the motion offered by Mr. COSTELLO. Mr. Speaker, I ask in the line of duty. the gentleman from New York (Mr. unanimous consent that all Members Today, thousands of people partici- TOWNS) that the House suspend the may have 5 legislative days within pate in the events, including the me- rules and pass the bill, H.R. 5148. which to revise and extend their re- morial service, and over 3,000 law en- The question was taken; and (two- marks and include extraneous material forcement officers have been honored thirds being in the affirmative) the on H. Con. Res. 264. from around our Nation. Currently, rules were suspended and the bill was The SPEAKER pro tempore. Is there there are approximately 900,000 law en- passed. objection to the request of the gen- forcement officers in the United States A motion to reconsider was laid on tleman from Illinois? that selflessly risk their lives so that the table. There was no objection. we can be safe and protected. Mr. COSTELLO. Mr. Speaker, I yield f Unfortunately, on average, 160 offi- myself such time as I may consume. cers each year lose their lives in the AUTHORIZING USE OF CAPITOL Mr. Speaker, House Concurrent Reso- line of duty. And there are approxi- GROUNDS FOR NATIONAL PEACE lution 264 authorizes use of the Capitol mately 16,000 assaults on police officers OFFICERS’ MEMORIAL SERVICE grounds for the 29th annual National each year, resulting in nearly 60,000 in- Peace Officers’ Memorial Service, a Mr. COSTELLO. Mr. Speaker, I move juries. This year, 324 fallen officers will solemn and respectful public event in to suspend the rules and agree to the be honored, including 116 who lost their our Nation’s capital honoring our he- concurrent resolution (H. Con. Res. 264) lives in 2009. Police Week will serve to roic civil servants who were killed in authorizing the use of the Capitol honor the service and sacrifice law en- the line of duty in the previous year. Grounds for the National Peace Offi- forcement officers make for us every Mr. Speaker, 116 brave men and cers’ Memorial Service. day. The Clerk read the title of the con- women were killed in the line of duty current resolution. in 2009, the fewest number since 1959. I support this resolution and encour- The text of the concurrent resolution The total number of officers killed in age my colleagues to do the same. is as follows: the line of duty declined 16 percent Mr. OBERSTAR. Mr. Speaker, I rise in H. CON. RES. 264 from 2008. Unfortunately, the number strong support of H. Con. Res. 264, author- Resolved by the House of Representatives (the of officers shot and killed had a dra- izing the use of the Capitol Grounds for the Senate concurring), matic rise and increased 22 percent National Peace Officers’ Memorial Service on SECTION 1. USE OF CAPITOL GROUNDS FOR NA- from the previous year. According to May 15, 2010. This memorable event will pro- TIONAL PEACE OFFICERS’ MEMO- vide an opportunity to honor the officers who RIAL SERVICE. the National Law Enforcement Offi- cers’ Memorial Fund, the number of in- work for States, counties, Federal law enforce- (a) IN GENERAL.—The Grand Lodge of the ment, military police, correction officers, and Fraternal Order of Police and its auxiliary cidents where more than one officer (in this resolution referred to as the ‘‘spon- was killed by a single gunman ac- as peace officers in the United States and its sor’’) shall be permitted to sponsor a public counted for 15 deaths, nearly a third of territories and to also honor those officers that event, the 29th Annual National Peace Offi- the officers killed in firearms-related have died in the line of duty in 2009. cers’ Memorial Service (in this resolution re- incidents. In October 1962, President Kennedy pro- ferred to as the ‘‘event’’), on the Capitol There were three peace officers who claimed May 15th as National Peace Officers’ Grounds, in order to honor the law enforce- died in Illinois in 2009, including one Memorial Day. Each year on this date, we, as ment officers who died in the line of duty a nation, have an opportunity to honor the during 2009. from my congressional district in Cen- (b) DATE OF EVENT.—The event shall be treville, Illinois, Gregory Jonas. commitment with which peace officers perform held on May 15, 2010, or on such other date as The National Peace Officers’ Memo- their daily task of protecting our local commu- the Speaker of the House of Representatives rial Service is a fitting tribute to all nities. Today, the National Peace Officers’ Me- and the Committee on Rules and Adminis- Federal, State and local peace officers morial Service on Capitol Hill has become one tration of the Senate jointly designate. who gave their lives in the daily work in a series of well-attended events during the SEC. 2. TERMS AND CONDITIONS. of protecting our families, our homes annual Police Week organized by the National (a) IN GENERAL.—Under conditions to be and our workplaces. Law Enforcement Memorial Fund, the Fra- prescribed by the Architect of the Capitol ternal Order of Police, and Concerns of Police and the Capitol Police Board, the event shall Consistent with all Capitol Hill be— events, the memorial service will be Survivors. (1) free of admission charge and open to the free and open to the public. I support The 2010 event marks the 29th time the public; and the resolution and urge my colleagues Capitol Grounds will be used for this note- (2) arranged not to interfere with the needs to join me in supporting this tribute to worthy event. According to the National Peace of Congress. our fallen peace officers. Officers’ Memorial Fund, there are approxi- (b) EXPENSES AND LIABILITIES.—The spon- Mr. Speaker, I reserve the balance of mately 900,000 sworn law enforcement offi- sor shall assume full responsibility for all expenses and liabilities incident to all activi- my time. cers serving the American public today. Thirty- ties associated with the event. Mr. PETRI. Mr. Speaker, I yield my- five states and Puerto Rico had officers killed SEC. 3. EVENT PREPARATIONS. self such time as I may consume. in 2009. Of the 116 officers killed, 51 were Subject to the approval of the Architect of Mr. Speaker, House Concurrent Reso- killed during a traffic-related incident, 49 were the Capitol, the sponsor is authorized to lution 264 authorizes the use of the killed in a firearms-related incident, and 16

VerDate Mar 15 2010 00:10 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00011 Fmt 4634 Sfmt 9920 E:\CR\FM\K28AP7.014 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2950 CONGRESSIONAL RECORD — HOUSE April 28, 2010 were killed in other types of incidents. Al- (2) by inserting ‘‘or the Airport and Airway ‘‘(6) $2,220,252,132 for the period beginning though the 116 peace officers that died in ac- Extension Act of 2010’’ before the semicolon on October 1, 2009, and ending on July 3, tion in 2009 is the lowest number since 1959, at the end of subparagraph (A). 2010.’’. (b) CONFORMING AMENDMENT.—Paragraph SEC. 8. RESEARCH, ENGINEERING, AND DEVEL- each officer’s death is a tragedy, and we (2) of section 9502(e) of such Code is amended OPMENT. should honor the sacrifices made by those by striking ‘‘May 1, 2010’’ and inserting Section 48102(a)(14) of title 49, United who have been killed in the line of duty. ‘‘July 4, 2010’’. States Code, is amended to read as follows: Activities on the Capitol Grounds conducted (c) EFFECTIVE DATE.—The amendments ‘‘(14) $144,049,315 for the period beginning under H. Con. Res. 264 will be coordinated made by this section shall take effect on on October 1, 2009, and ending on July 3, with the Architect of the Capitol, will be free, May 1, 2010. 2010.’’. and open to the public. SEC. 4. EXTENSION OF AIRPORT IMPROVEMENT The SPEAKER pro tempore. Pursu- It is fitting that we pay tribute the lives, sac- PROGRAM. ant to the rule, the gentleman from Il- (a) AUTHORIZATION OF APPROPRIATIONS.— rifices, and public service of our brave peace (1) IN GENERAL.—Section 48103(7) of title 49, linois (Mr. COSTELLO) and the gen- officers and their families today. I urge my col- United States Code, is amended to read as tleman from Wisconsin (Mr. PETRI) leagues to join me in supporting H. Con. Res. follows: each will control 20 minutes. 264. ‘‘(7) $3,024,657,534 for the period beginning The Chair recognizes the gentleman Mr. PETRI. Mr. Speaker, I have no on October 1, 2009, and ending on July 3, from Illinois. further requests for time, and I yield 2010.’’. GENERAL LEAVE back the balance of my time. (2) AVAILABILITY OF AMOUNTS.—Sums made Mr. COSTELLO. Mr. Speaker, I ask Mr. COSTELLO. Mr. Speaker, I urge available pursuant to the amendment made by paragraph (1) shall remain available until unanimous consent that all Members support of this resolution, and I yield expended. may have 5 legislative days within back the balance of my time. (3) PROGRAM IMPLEMENTATION.—For pur- which to revise and extend their re- The SPEAKER pro tempore. The poses of calculating funding apportionments marks and to include extraneous mate- question is on the motion offered by and meeting other requirements under sec- rial on H.R. 5147. the gentleman from Illinois (Mr. tions 47114, 47115, 47116, and 47117 of title 49, The SPEAKER pro tempore. Is there COSTELLO) that the House suspend the United States Code, for the period beginning objection to the request of the gen- rules and agree to the concurrent reso- on October 1, 2009, and ending on July 3, 2010, tleman from Illinois? lution, H. Con. Res. 264. the Administrator of the Federal Aviation There was no objection. The question was taken; and (two- Administration shall— (A) first calculate funding apportionments Mr. COSTELLO. Mr. Speaker, I yield thirds being in the affirmative) the on an annualized basis as if the total amount myself such time as I may consume. rules were suspended and the concur- available under section 48103 of such title for Mr. Speaker, I rise in support of H.R. rent resolution was agreed to. fiscal year 2010 were $4,000,000,000; and 5147, the Airport and Airway Extension A motion to reconsider was laid on (B) then reduce by 17 percent— Act of 2010. I want to thank Chairman the table. (i) all funding apportionments calculated OBERSTAR and Ranking Member MICA, under subparagraph (A); and f as well as Mr. PETRI for working with (ii) amounts available pursuant to sections me to bring this bill to the floor today. AIRPORT AND AIRWAY EXTENSION 47117(b) and 47117(f)(2) of such title. In both the 110th and 111th Con- ACT OF 2010 (b) PROJECT GRANT AUTHORITY.—Section 47104(c) of such title is amended by striking gresses, the House passed comprehen- Mr. COSTELLO. Mr. Speaker, I move ‘‘April 30, 2010,’’ and inserting ‘‘July 3, 2010,’’. sive legislation to reauthorize the FAA to suspend the rules and pass the bill SEC. 5. EXTENSION OF EXPIRING AUTHORITIES. and to provide for much-needed mod- (H.R. 5147) to amend the Internal Rev- (a) Section 40117(l)(7) of title 49, United ernization of our aviation system. Last enue Code of 1986 to extend the funding States Code, is amended by striking ‘‘May 1, month, the other body passed its own and expenditure authority of the Air- 2010.’’ and inserting ‘‘July 4, 2010.’’. FAA reauthorization bill. We look for- port and Airway Trust Fund, to amend (b) Section 44302(f)(1) of such title is ward to the completion of a final com- title 49, United States Code, to extend amended— prehensive bill, and are in the process authorizations for the airport improve- (1) by striking ‘‘April 30, 2010,’’ and insert- ing ‘‘July 3, 2010,’’; and of working out the differences in both ment program, and for other purposes. (2) by striking ‘‘July 31, 2010,’’ and insert- legislation to reconcile and bring a The Clerk read the title of the bill. ing ‘‘September 30, 2010,’’. conference report to the floor. The text of the bill is as follows: (c) Section 44303(b) of such title is amended However, the airport and airways H.R. 5147 by striking ‘‘July 31, 2010,’’ and inserting trust fund will expire on April 30, 2010, Be it enacted by the Senate and House of Rep- ‘‘September 30, 2010,’’. and the bill before us today is needed resentatives of the United States of America in (d) Section 47107(s)(3) of such title is to extend the aviation taxes and ex- Congress assembled, amended by striking ‘‘May 1, 2010.’’ and in- serting ‘‘July 4, 2010.’’. penditure authority, and the airport SECTION 1. SHORT TITLE. (e) Section 47115(j) of such title is amended improvement program contract author- This Act may be cited as the ‘‘Airport and by striking ‘‘May 1, 2010,’’ and inserting ity until July 3, 2010. Airway Extension Act of 2010’’. ‘‘July 4, 2010,’’. Specifically, H.R. 5147 provides $3 bil- SEC. 2. EXTENSION OF TAXES FUNDING AIRPORT (f) Section 47141(f) of such title is amended lion in AIP contract authority through AND AIRWAY TRUST FUND. by striking ‘‘April 30, 2010.’’ and inserting early July, which translates to an (a) FUEL TAXES.—Subparagraph (B) of sec- ‘‘July 3, 2010.’’. annualized amount of $4 billion for fis- tion 4081(d)(2) of the Internal Revenue Code (g) Section 49108 of such title is amended of 1986 is amended by striking ‘‘April 30, by striking ‘‘April 30, 2010,’’ and inserting cal year 2010. This level of funding is 2010’’ and inserting ‘‘July 3, 2010’’. ‘‘July 3, 2010,’’. consistent with the annual levels pro- (b) TICKET TAXES.— (h) Section 161 of the Vision 100—Century vided by the House and Senate reau- (1) PERSONS.—Clause (ii) of section of Aviation Reauthorization Act (49 U.S.C. thorization bills, as well as the fiscal 4261(j)(1)(A) of the Internal Revenue Code of 47109 note) is amended by striking ‘‘May 1, year 2010 concurrent budget resolution. 1986 is amended by striking ‘‘April 30, 2010’’ 2010,’’ and inserting ‘‘July 4, 2010,’’. These additional funds will allow air- and inserting ‘‘July 3, 2010’’. (i) Section 186(d) of such Act (117 Stat. ports to continue critical safety capac- (2) PROPERTY.—Clause (ii) of section 2518) is amended by striking ‘‘May 1, 2010,’’ ity enhancement projects. Addition- 4271(d)(1)(A) of such Code is amended by and inserting ‘‘July 4, 2010,’’. striking ‘‘April 30, 2010’’ and inserting ‘‘July (j) The amendments made by this section ally, the bill provides $7 billion for the 3, 2010’’. shall take effect on May 1, 2010. FAA operations; $2.2 billion for facility (c) EFFECTIVE DATE.—The amendments SEC. 6. FEDERAL AVIATION ADMINISTRATION OP- and equipment programs; and $144 mil- made by this section shall take effect on ERATIONS. lion for research, engineering and de- May 1, 2010. Section 106(k)(1)(F) of title 49, United velopment programs. SEC. 3. EXTENSION OF AIRPORT AND AIRWAY States Code, is amended to read as follows: When translated to yearly amounts, TRUST FUND EXPENDITURE AU- ‘‘(F) $7,070,158,159 for the period beginning these AIP figures equal the funding THORITY. on October 1, 2009, and ending on July 3, levels passed in the Transportation, (a) IN GENERAL.—Paragraph (1) of section 2010.’’. Housing and Urban Development, and 9502(d) of the Internal Revenue Code of 1986 SEC. 7. AIR NAVIGATION FACILITIES AND EQUIP- is amended— MENT. Related Agencies Appropriation Act of (1) by striking ‘‘May 1, 2010’’ and inserting Section 48101(a)(6) of title 49, United States 2010. In addition, aviation excise taxes ‘‘July 4, 2010’’; and Code, is amended to read as follows: will also be extended through July 3,

VerDate Mar 15 2010 01:38 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00012 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.022 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2951 2010. These taxes are necessary to sup- Mr. PETRI is the ranking member of internationally coherent and inter- port the airport and airways trust aviation, Mr. COSTELLO the current nationally compliant way to proceed fund, which funds a large portion of the chair. When I came to Congress, Mr. for repair stations. Those controversial FAA’s budget. Any lapse in these taxes OBERSTAR was the chair of the Avia- provisions need to be put aside. could drain the trust fund’s balance, so tion Subcommittee and I was in the Move forward. People are crying out it is important that we act now pend- minority but a member of the com- for jobs in this country, and one of the ing the passage of a longer-term reau- mittee. From 2001 to 2008, I was the best employers that we have in this thorization bill. chairman of the Aviation Sub- Nation is the aviation industry. It pays Aviation is too important to our Na- committee. In fact, in 2003, I wrote the some of the highest salaries, and we tion’s economy, contributing $1.2 tril- current FAA authorization that has have the potential for expanding that. lion in output and approximately 11.4 been extended some 13 times with the When you expand aviation, you enter million jobs, to allow the taxes or the passage of this today. I know I did a global markets with such ease today, funding for critical aviation programs great job and a thorough job, but I but we are leaving that behind. So I to expire. Congress must ensure that never intended it to last on and on. am, indeed, deeply saddened that we this extension passes today to ensure And it wasn’t intended to last on and are not at a point where we are passing that our aviation system is not dis- on. At that time we did a 4-year bill. this. rupted and continues to function safe- We set the policies, the projects. We set Now, I ask Members to support this ly. I urge my colleagues to support this all of the safety criteria for aviation in extension, the 13th extension. This is a legislation. the country. very embarrassing moment for the Mr. Speaker, I reserve the balance of But what particularly burns me right Congress, and I’m sad that our work is my time. now is we have a commuter aviation not done. Mr. PETRI. Mr. Speaker, I yield my- safety piece of legislation that we in- Mr. PETRI. Mr. Speaker, I urge my self such time as I may consume. tend to incorporate in this extension. colleagues to support H.R. 5147, and I In May of last year, the House passed We have had it done for some time. We yield back the balance of my time. H.R. 915, the FAA Reauthorization Act worked in a bipartisan fashion; and Mr. COSTELLO. Mr. Speaker, I yield of 2009. Last month, the Senate passed myself such time as I may consume. its own FAA reauthorization bill which that sits idle. We sat down in a bipar- tisan fashion after we had a number of Mr. Speaker, let me concur with the the House took up, amended and remarks of the ranking member of the passed, and sent back to the Senate. disastrous commuter flights, one up in full committee, Mr. MICA, and Mr. While a conference has not been called, New York, and our heart aches for those families who have suffered the PETRI in his statement. I do want to staff from both Chambers have begun make it clear, though, that in this informal discussions to reconcile the loss of a loved one. We had a responsi- bility to pass that legislation; and that House we have done our job, both in two versions of bill. 2007 and in 2009. The committee, and This process will take time, and legislation, which is part of the exten- also the full House, passed the reau- given that the current FAA extension sion, is still sitting today undone. But thorization bill; and on both occasions, expires at the end of this month, we again, 15 times we have been here. This need to again extend the FAA’s taxes is the 13th extension. This goes on to in 2007 and 2009, we sent it over to the and authorities to allow time to get a July of a bill that I authored back in Senate and waited for the other body final, conferenced FAA bill. 2003 that expired in 2007. to act. Unfortunately, the other body did not act until recently, and as I said H.R. 5147 would extend the taxes, pro- b 1115 grams, and funding of the FAA to July in my opening remarks, we are negoti- 3 of this year. This bill provides just And it couldn’t come at a worse time ating with them now to resolve our dif- over $3 billion in airport improvement for the economy. We need in place that ferences so that we can bring a bill to program funding; extends the war risk policy. We need the funding formula in the floor in order to get it to the Presi- insurance program; and extends other place. We need the ability to move and dent. authorities related to small commu- expand our airports which are our main Mr. MICA is right about the Airline nity air service, airport and safety pro- transportation hub of today and the fu- Pilot and Safety Act as well. We did grams. ture. pass that legislation both in the com- This bill will ensure that our na- The modernization of the air traffic mittee and the House. It was a bipar- tional airspace system continues to op- control system and the provisions that tisan bill. It is urgently needed. It is a erate and that the FAA continues to we put in this to move that forward are part of the reauthorization process. fund important airport projects while also stalled, it’s called NextGen, next- And, again, it is my hope that we can the Congress completes action on a generation air traffic control. This is work out our differences and quickly final reauthorization bill. very sad. When you stop and think bring a conference report to the floor. Mr. Speaker, I would now like to about it, 11 percent of the economy of I urge my colleagues to support this yield such time as he may consume to the United States of America deals legislation. the senior Republican on the Public around the aviation industry. This is Mr. OBERSTAR. Mr. Speaker, I rise in Works and Transportation Sub- big business, it’s big jobs, and, unfortu- strong support of H.R. 5147, the ‘‘Airport and committee, the gentleman from Flor- nately it’s stalled. And that’s sad. Airway Extension Act of 2010’’. ida (Mr. MICA). I’m not here to point fingers. The H.R. 5147 ensures that aviation programs, Mr. MICA. Mr. Speaker, I thank Mr. House has done due diligence. The taxes, and Airport and Airway Trust Fund ex- PETRI, our ranking member on the other body continues to work on the penditure authority will continue without inter- Aviation Subcommittee, for yielding measure. They’ve made some progress ruption, pending completion of a long-term me this time. I am pleased also to rec- of late. There are some issues in here, Federal Aviation Administration, FAA, reau- ognize the fine work of the current one that’s called the FedEx provision, thorization act. chair of the Aviation Subcommittee, which does expand some unionization The most recent long-term FAA reauthoriza- Mr. COSTELLO and our chair of the full provisions if it is passed. Quite frankly, tion act, the Vision 100—Century of Aviation committee, Mr. OBERSTAR. the Senate has said that provision is Reauthorization Act, P.L. 108–176, expired on I am here today, Mr. Speaker and my not going to be accepted. Many on the September 30, 2007. The House passed an colleagues, and folks, you haven’t House oppose this on both sides of the FAA reauthorization bill during the 110th Con- tuned in here to the comedy hour. In aisle. Let’s take the controversial gress, and again last year. I am pleased that fact, it is almost sort of a sad time. It things, put them aside, and move for- the Senate passed its own comprehensive re- almost seems like a bit of a sad com- ward with the bill. authorization bill last month, and I look forward edy that we are back here for the 15th Foreign repair stations. We cannot to the passage of final legislation that will pro- time extending FAA authorization, au- abrogate our obligations under inter- vide for the modernization of our aviation sys- thorization for all of the policy, Fed- national treaties. We can’t leave planes tem and reauthorize the FAA over the long eral programs that deal with aviation, in some foreign location without the term. the 15th time, and this is the 13th ex- ability to repair them. So we have to We must ensure in the meantime that the tension. have a reasonable standard and an FAA’s programs and authority do not lapse.

VerDate Mar 15 2010 01:38 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00013 Fmt 4634 Sfmt 9920 E:\CR\FM\K28AP7.019 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2952 CONGRESSIONAL RECORD — HOUSE April 28, 2010 Accordingly, H.R. 5147 is the latest short-term considered as read, shall be debatable for the poorly not just on the Pentagon, but on extension act. It ensures continuity of funding time specified in the report equally divided Congress as well. The $640 toilet seat is and program authority beyond April 30, 2010, and controlled by the proponent and an op- now the stuff of legend, but sadly it is ponent, shall not be subject to amendment, when the FAA’s current extension expires. often just the tip of the iceberg. and shall not be subject to a demand for divi- In recent years, excesses stemming H.R. 5147 provides a two-month extension of sion of the question. All points of order aviation programs, through July 3, 2010. against such amendments are waived except from the ill considered rush towards I thank my Committee colleagues—espe- those arising under clause 9 or 10 of rule XXI. privatization championed by the pre- cially Ranking Member MICA, Aviation Sub- At the conclusion of consideration of the bill vious administration have become in- committee Chairman COSTELLO, and Aviation for amendment the Committee shall rise and creasingly common. The push to con- Subcommittee Ranking Member PETRI—as report the bill to the House with such tract out nearly every part of the mili- well as Ways and Means Committee Chair- amendments as may have been adopted. The tary’s mission has inevitably led to previous question shall be considered as or- man LEVIN and Ranking Member CAMP for waste, fraud, and abuse involving some dered on the bill and amendments thereto to of the biggest corporate names in this working with me on this critical legislation. final passage without intervening motion ex- I strongly urge my colleagues to join me in cept one motion to recommit with or with- country. Sadly, I believe that many supporting H.R. 5147. out instructions. years from now historians will asso- Mr. COSTELLO. Mr. Speaker, I yield SEC. 2. The Chair may entertain a motion ciate a significant part of the war in back the balance of my time. that the Committee rise only if offered by Iraq with wasteful and poorly managed The SPEAKER pro tempore. The the chair of the Committee on Armed Serv- contracts that made private companies question is on the motion offered by ices or his designee. The Chair may not en- millions of dollars, billions of dollars, the gentleman from Illinois (Mr. tertain a motion to strike out the enacting actually, often at the expense of our words of the bill (as described in clause 9 of COSTELLO) that the House suspend the rule XVIII). own men and women in uniform and rules and pass the bill, H.R. 5147. certainly of taxpayers. The question was taken; and (two- The SPEAKER pro tempore. The gen- Two years ago in Congress, I was here thirds being in the affirmative) the tlewoman from New York is recognized on the floor as the House debated H.R. rules were suspended and the bill was for 1 hour. 1362, the Accountability in Contracting passed. Ms. SLAUGHTER. Mr. Speaker, for Act. That, too, was intended to save A motion to reconsider was laid on the purpose of debate only, I yield the taxpayer money. Earlier in the 110th the table. customary 30 minutes to the gentle- Congress, I worked with my friend, Ms. woman from North Carolina, Dr. Foxx. f SCHAKOWSKY, on H.R. 897, the Iraq and All time yielded during consideration Afghanistan Contractor Sunshine Act. PROVIDING FOR CONSIDERATION of the rule is for debate only. I hesitate to say that those and other OF H.R. 5013, IMPLEMENTING GENERAL LEAVE efforts towards contracting reform MANAGEMENT FOR PERFORM- Ms. SLAUGHTER. I ask unanimous have been unsuccessful. Clearly, we ANCE AND RELATED REFORMS consent that all Members have 5 legis- have made significant reforms and part TO OBTAIN VALUE IN EVERY AC- lative days within which to revise and of our work in Congress involves reg- QUISITION ACT OF 2010 extend their remarks and to insert ex- ular and diligent oversight. It is a Ms. SLAUGHTER. Mr. Speaker, by traneous materials into the CONGRES- never-ending process. direction of the Committee on Rules, I SIONAL RECORD. For my part, one of my proudest ef- call up House Resolution 1300 and ask The SPEAKER pro tempore. Is there forts during my career in Congress has for its immediate consideration. objection to the request of the gentle- been to force the Pentagon to acknowl- The Clerk read the resolution, as fol- woman from New York? edge that some of the testing done on lows: There was no objection. body armor for troops during an early H. RES. 1300 Ms. SLAUGHTER. I yield myself part of the war was deeply flawed. My Resolved, That at any time after the adop- such time as I may consume. work on this issue grew out of a 2006 tion of this resolution the Speaker may, pur- Mr. Speaker, the resolution provides audit that I read about in The New suant to clause 2(b) of rule XVIII, declare the a structured rule for consideration of York Times that found that 80 percent House resolved into the Committee of the H.R. 5013, the IMPROVE Acquisition of marines who had died in Iraq of Whole House on the state of the Union for Act of 2010. The rule waives all points upper body wounds would have sur- consideration of the bill (H.R. 5013) to amend of order against consideration of the vived with the proper body armor. I title 10, United States Code, to provide for bill except those arising under clause 9 performance management of the defense ac- waited for other committees to take quisition system, and for other purposes. The or 10 of rule XXI. It makes in order the the lead, but no one came to the floor. first reading of the bill shall be dispensed committee amendment as an original We are still working on this issue, with. All points of order against consider- bill and provides that the bill shall be but we have come a very long way. ation of the bill are waived except those aris- considered as read. Major changes have been made in test- ing under clause 9 or 10 of rule XXI. General The rule waives all points of order ing labs, some of them taken back into debate shall be confined to the bill and shall against the committee amendment ex- the Army rather than contracted out, not exceed one hour equally divided and con- cept those arising under clause 10 of which in this case did not work. trolled by the chair and ranking minority rule XXI. The rule makes in order the member of the Committee on Armed Serv- Thankfully, however, the work did ac- ices. After general debate the bill shall be 16 amendments printed in the Rules complish one thing: the military considered for amendment under the five- Committee report and waives all points agreed to no more poorly managed minute rule. It shall be in order to consider of order against those amendments ex- deals for outside contractors to test as an original bill for the purpose of amend- cept those arising under clause 9 or 10 the body armor. All current and future ment under the five-minute rule the amend- of rule XXI. The rule provides one mo- body armor testing will be conducted ment in the nature of a substitute rec- tion to recommit with or without in- internally by the Department of Test- ommended by the Committee on Armed structions. ing and Evaluation within the DOD Services now printed in the bill. The com- The rule provides the Chair may en- mittee amendment in the nature of a sub- with strict standards to ensure our stitute shall be considered as read. All points tertain a motion that the committee troops receive nothing but the highest of order against the committee amendment rise only if offered by the Chair of the quality of body armor. in the nature of a substitute are waived ex- Committee on Armed Services or a des- When it comes to the safety of our cept those arising under clause 10 of rule ignee. The Chair may not entertain a troops, which we send into battle, it is XXI. Notwithstanding clause 11 of rule motion to strike out the enacting foolish to put the bid out to the lowest- XVIII, no amendment to the committee words of the bill. priced contractor. amendment in the nature of a substitute Mr. Speaker, over the years we have But today we have moved into a new shall be in order except those printed in the watched as countless stories revealed chapter of oversight and reform, and I report of the Committee on Rules accom- panying this resolution. Each such amend- flaws in the military’s procurement op- am happy to see it come. This morning ment may be offered only in the order print- eration. Disappointment with the way we are bringing up an important piece ed in the report, may be offered only by a the Department of Defense manages of legislation intended to help the Pen- Member designated in the report, shall be the money we appropriate it reflects tagon reform inefficient procurement

VerDate Mar 15 2010 01:38 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00014 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.023 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2953 operations. It’s called the Imple- record number of structured and closed or 5 percent. Military spending rep- menting Management for Performance rules the Democrats have arbitrarily resents less than one-fifth of the Fed- and Related Reforms to Obtain Value used since they have been in the major- eral budget and approximately half of in Every Acquisition Act of 2010, other- ity. the average level of defense spending wise known as the IMPROVE Act. This Today, the Democrats in charge have during the Cold War as a percentage of bill will help the Defense Department rejected nine amendments offered by our economy. Meanwhile, Medicare, immediately, once this is signed, to their colleagues, and they have refused Medicaid, Social Security, and the crack down on cost overruns and lax to allow these amendments to be de- President’s new health care takeover oversight of contractors. Not only bated and for their colleagues’ voices are on course to consume the entire that, but the bill should help reduce to be heard. Democrats have chosen to Federal budget, including defense. Ac- our dangerous reliance oftentimes on stifle and control the debate today, cording to the Heritage Foundation, outside companies to do so many var- presenting the Congress with another under current projections, it is ex- ied functions on behalf of the military. structured rule, eliminating the ability pected that the Federal Government It is hard to overstate how important of both the Republicans and the Demo- will spend more on interest payments this bill is. My colleague, Mr. CONAWAY crats to offer important amendments for the national debt than on defense of Texas, who is the ranking member of affecting their constituents. by the year 2015, if not sooner. the House Armed Services Committee After promising to have the most The Obama administration’s recently Defense Acquisition Panel, offered the honest and open Congress in history, released Nuclear Posture Review and following testimonial on how urgent why has the Speaker consistently gone New START agreement will weaken national security, and it will make our the need is for contracting and acquisi- back on her word? Why are the Demo- Nation less safe. It will cause the U.S. tion reform. He said: ‘‘The Department crats in charge shutting off debate and to fall dangerously behind at a time of Defense is the largest agency in the silencing their colleagues on both sides when other countries are seeking to Federal Government, owning 86 percent of the aisle? Are they afraid of debate? strengthen and to develop their own of the government’s assets, estimated Are they protecting their Members nuclear weapons. The President seems at $4.6 trillion. Over the last two dec- from tough votes? to believe that the power of New ades, millions of dollars have been Regardless of their motives, one START’s example will somehow en- spent by DOD in the quest to obtain thing is clear: The Democrats in charge courage Iran and North Korea to sur- auditable financial statements.’’ Yet are doing the American people an in- justice by refusing to allow their Rep- render their ambitions, but there is no getting those numbers has proven elu- evidence to believe this is the case. resentatives to offer their amendments sive, if not at times impossible. No Since the end of the Cold War, these on the floor of the people’s House. more, Mr. Speaker, after this bill is countries have only increased their at- Therefore, Mr. Speaker, I urge my col- signed. tempts to gain nuclear weapons even as leagues to reject this structured rule. This bill mandates that the Pentagon the U.S. and Russia have been reducing consider shifting work away from con- I reserve the balance of my time. Ms. SLAUGHTER. I yield myself their supplies. tractors if they don’t meet the cost What would do far more good is a such time as I may consume. goals. It will set up a new system of loud and clear declaration that the Mr. Speaker, I need to point out to cost objectives and schedules which U.S. and Russia will stop Iran from the gentlewoman that there were 26 DOD procurement officers would have gaining a nuclear military capability amendments offered on this bill. Only to follow. The bill says that by 2017 by whatever means necessary. The one was a Republican amendment. Ten Pentagon agencies must prepare NPR references existing treaties that amendments were not allowed, but the records that can be audited and draft a our enemies disregard and treaties that Republican amendment was. We are new policy that wouldn’t reward those have yet to be negotiated, which will who don’t meet requirements. These not afraid of debate. We are not afraid take years of diplomatic effort to are simple, sensible reforms that the of discussion. As a matter of fact, I am achieve but will do little to make American people can understand and somewhat taken aback by your calling America more secure. appreciate. for a ‘‘no’’ vote on this rule given that The threat to international non- this legislation passed unanimously b 1130 proliferation is a nuclear Iran, not the out of the committee. U.S. nuclear arsenal. Nuclear weapons No matter what anyone in Congress I have no further requests for time, are an inevitable truth in our modern- thinks of the ongoing wars in Afghani- so I reserve the balance of my time. day world, so, unfortunately, they are stan and Iraq, all of us know that the Ms. FOXX. I appreciate the com- essential to our national survival. As men and women who are serving over- ments of the gentlewoman from New long as they exist, we must have the seas rely on the equipment, and they York. world’s most effective nuclear arsenal deserve to know that the funds for Mr. Speaker, I do realize that the bill and possess a missile defense system to their equipment are not being squan- passed out of committee unanimously, protect ourselves against any actor dered and that they are given equip- and I am sure it is going to receive that employs nuclear weapons. This is ment of the highest quality. strong support on the floor. Yet we necessary in order to comply with the Another bright note on this legisla- know that providing protection for our Constitution’s requirements to provide tion is that, when it was approved by Nation is one of the few jobs specifi- for our common defense. the Armed Services Committee, the cally assigned to the Federal Govern- The NPR signifies that the Obama vote was 56–0. Such bipartisanship is ment by the U.S. Constitution. Indeed, administration plans to neglect this re- rare in the House these days, and I am the Federal Government is the only sponsibility. The administration’s NPR happy to speak on a bill that all of us level of government that can provide provides many carrots but few sticks. can agree on. Although there is not for the defense of this Nation. However, It commits the U.S. to unilateral disar- currently any pending movement on based on the policies of this adminis- mament while hoping that this will the bill in the Senate, it is my hope a tration and the Democrats in charge, give incentives to other nations to do decisive and strong bipartisan vote who have slashed defense spending even the same, which it will not. It leaves today on this bill will spur the Senate in the midst of ongoing terror threats, the U.S. with no deterrent against into action. Billions of taxpayer dollars only to increase domestic spending and rogue nations, such as North Korea and and the trust of our troops depend on our national debt, you would never Iran, which continue to develop nu- it. know this was true. clear arsenals and to assert they will I reserve the balance of my time. I am very concerned about the back- use nuclear weapons if they so much as Ms. FOXX. I thank my colleague ward spending priorities of this admin- feel threatened by the U.S. from New York for yielding time. istration and of the Democrats in A ‘‘nuclear zero,’’ which the Obama Mr. Speaker, I am very concerned charge. While the defense budget pro- administration talks eloquently about, that the underlying bill we have before posed by the administration is flat, cannot be achieved unilaterally or even us today is being brought forward growing only by 1 percent last year, bilaterally. It will require many coun- under a structured rule, adding to the automatic spending grew by $77 billion, tries to make the strategic decision

VerDate Mar 15 2010 01:38 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00015 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.022 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2954 CONGRESSIONAL RECORD — HOUSE April 28, 2010 that nuclear weapons are unnecessary How ironic, Mr. Speaker, to have had equipment they need to keep them safe for their security. Yet the rest of the those words spoken by now Speaker on the battlefield as well as to protect world, including our allies, friends and PELOSI. our country. And when that system foes, see the continuing value in nu- In 2006, then-Minority Whip HOYER breaks down, they suffer. clear weapons. told Republicans, ‘‘You have voted for In recent years, I and many of my Winston Churchill once warned the budgets which have provided the larg- colleagues on the Armed Services Com- U.S. to ‘‘be careful, above all things, est deficits in our history. You are in mittee have become increasingly con- not to let go of the atomic weapon charge of the House; you are in charge cerned that this flawed defense acquisi- until you are sure and more than sure of the Senate, and you have the Presi- tion system was not responsive enough that other means of preserving peace dency.’’ to today’s mission needs, not rigorous are in your hands.’’ I would tell the majority leader enough in protecting the tax dollars of We are not even close to meeting today to heed his own words and to ask millions of families who are struggling Churchill’s requirement, because we himself if his Democrat Congress is financially, and not disciplined enough have not yet found an alternative basis doing the right thing by the American in the acquisition of weapons systems for preventing war. Weakening our nu- people, by our children, and by our for tomorrow’s wars. clear arsenal will stop us from being grandchildren. We took action. Mr. Chairman, last able to follow through on our commit- Mr. Speaker, I urge my colleagues to year we worked with the Senate to ments to our allies. Many of our clos- vote ‘‘no’’ on the rule, and I yield back enact legislation to reform weapons est allies see U.S. nuclear weapons as a the balance of my time. system acquisition, which covers about large component of their security and Ms. SLAUGHTER. Mr. Speaker, I 20 percent of all of the military acqui- the reason they remain nonnuclear. urge a ‘‘yes’’ vote on both the previous sitions. However, weapon systems Without the U.S. nuclear umbrella, question and on the rule. make up only a small piece of our de- they may fear that they lack security I yield back the balance of my time, fense. That bill was a great launching and, thus, will develop their own alter- and I move the previous question on pad; however, we need to do more. native nuclear deterrent capabilities. the resolution. In the House, we continued the effort As the late British nuclear expert, The previous question was ordered. by creating a Panel on Defense Acqui- Sir Michael Quinlan, stated, ‘‘Better a The resolution was agreed to. sition Reform, ably led by Congress- world with nuclear weapons but no A motion to reconsider was laid on men ROB ANDREWS and MIKE CONAWAY major war than one with major war but the table. to carry out a comprehensive review of no nuclear weapons.’’ f the current system and to identify Nuclear weapons have served our Na- what steps we need to take to make tion as a primary deterrent and are the IMPLEMENTING MANAGEMENT this system work. The panel could not reason we have not had a world war FOR PERFORMANCE AND RE- have done a better job scrutinizing the since their inception. Without them, LATED REFORMS TO OBTAIN defense acquisition system. It deals we will lose our ability to deter rogue VALUE IN EVERY ACQUISITION with everything from paper clips to nations from attacking us or our allies. ACT OF 2010 boots to food, everything under the ac- Thus, we will lose the ability to lead The SPEAKER pro tempore. Pursu- quisition umbrella. our world towards peace. During the course of this past year, Mr. Speaker, not so long ago, the ant to House Resolution 1300 and rule this panel held 14 hearings plus two Democrats in charge were outspoken XVIII, the Chair declares the House in briefings on a broad range of issues critics of the Bush administration’s the Committee of the Whole House on dealing with the acquisition system, spending. However, it is clear that the State of the Union for the consider- unearthing everything from contract these same Democrats either have very ation of the bill, H.R. 5013. fraud to simple process errors that led short memories or their criticism was b 1148 to billions of wasted dollars. They put all for show because, since being in IN THE COMMITTEE OF THE WHOLE charge, they have not only failed to together an excellent report with sug- Accordingly, the House resolved improve our current economic situa- gestions to fix the system. And we are itself into the Committee of the Whole tion but have undeniably made it here today, with the good will of the House on the State of the Union for the worse. While both Republicans and House, to pass legislation that will consideration of the bill (H.R. 5013) to Democrats need to work to hold the enact those recommendations as out- amend title 10, United States Code, to line on spending, it is only appropriate lined in the panel headed by Mr. AN- provide for performance management that the Democrats in charge be re- DREWS and Mr. CONAWAY. of the defense acquisition system, and minded of their criticisms of deficit This act will overhaul the defense ac- for other purposes, with Mr. KIND in spending under a Republican Congress, quisition system in many respects. Ba- the chair. which their own spending under their sically, however, requiring the depart- The Clerk read the title of the bill. Democrat Congress now dwarfs. ment to set clear objectives for the de- In 2006, then-Minority Leader PELOSI The CHAIR. Pursuant to the rule, the fense acquisition system and manage stated, ‘‘When Republicans spend the bill is considered read the first time. performance in achieving those objec- Federal budget into the red, the U.S. The gentleman from Missouri (Mr. tives; requiring the department to in- Treasury borrows money from foreign SKELTON) and the gentleman from Cali- troduce real accountability into the re- countries. Our national debt is a na- fornia (Mr. MCKEON) each will control quirements process, and create a re- tional security issue. Countries that 30 minutes. quirements process for the acquisition own our debt will not only be making The Chair recognizes the gentleman of services; strengthening and revital- our toys, our clothes, and our com- from Missouri. izing the acquisition workforce; requir- puters, pretty soon, they will be mak- Mr. SKELTON. Mr. Chairman, I yield ing the department to develop mean- ing our foreign policy.’’ myself such time as I may consume. ingful consequences for success or fail- Actions speak louder than words. If I rise in strong support of H.R. 5013, ure in financial management; and only Speaker PELOSI still held these which is known as the IMPROVE Ac- strengthening the industrial base to beliefs today, maybe our fiscal situa- quisition Act of 2010. For many years enhance competition and gain access to tion would look quite different. we’ve witnessed waste in the Depart- more innovative technology. Again in 2006, Minority Leader ment of Defense’s acquisition system In other words, the legislation before PELOSI is quoted as saying, ‘‘If some- spiral out of control, placing a heavy us today would require the Department thing is important to you, figure out burden both on the American tax- of Defense to adopt the basic manage- how to pay for it, but do not make my payers as well as our men and women ment practices that are necessary for children and grandchildren have to pay in uniform. Less frequently, but still anything as complex as the acquisi- for it or anybody’s children or grand- far too often, fraud and abuse have tions system to function properly. children have to pay for it. It is im- crept into the system, as sadly it hap- These changes will make sure that the moral for us to heap these deficits on pened recently in Iraq. Our troops rely men and women who are risking their our children.’’ on the acquisition system to buy the lives to protect our country are getting

VerDate Mar 15 2010 03:25 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00016 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.025 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2955 the proper equipment they need to do claims to certain provisions in this impor- debate on the bill. Thank you for your co- their jobs and to protect themselves, tant legislation, and I am most appreciative operation as we work towards enactment of and that they get it sooner. Addition- of your decision not to schedule a mark-up of this legislation. ally, we expect this bill to prevent the this bill in the interest of expediting consid- Very truly yours, eration. I agree that by agreeing to waive IKE SKELTON, waste of billions of taxpayer dollars consideration of certain provisions of the Chairman. over the next 5 years. bill, the Committee on Ways and Means is I reserve the balance of my time. This is a bipartisan bill. I am very not waiving its jurisdiction over these mat- Mr. MCKEON. Mr. Chairman, I yield proud of that fact. It passed our Armed ters. Services Committee by a vote of 56–0. A This exchange of letters will be included in myself such time as I may consume. great deal of credit goes to Mr. ROB AN- the committee report of the bill and inserted Today I rise in support of H.R. 5013, DREWS and Mr. MIKE CONAWAY. And a in the Congressional Record as part of con- the IMPROVE Acquisition Act of 2010. special thanks to my partner, BUCK sideration of the bill in the House. Thank The very first thing I would like do is you for your cooperation as we work towards MCKEON, the ranking member, the gen- thank my partner across the aisle, enactment of this legislation. Chairman IKE SKELTON. Chairman tleman from California. Very truly yours, SKELTON has shown considerable lead- I urge my colleagues to join us in IKE SKELTON, sending the strongest possible message Chairman. ership on this front, as well as the tone to the men and women in uniform, as he has set for our committee through- well as to the American people, that we COMMITTEE ON OVERSIGHT AND GOV- out this Congress. I want to commend are serious about protecting the tax- ERNMENT REFORM, HOUSE OF REP- him and his staff for working so closely payers’ dollars and making the acquisi- RESENTATIVES, with us on this bipartisan bill. tion system work more smoothly. It’s Washington, DC, April 22, 2010. Subcommittee Chairman ROB AN- really for them as well as for our coun- Hon. IKE SKELTON, DREWS and Ranking Member MIKE Chairman, Committee on Armed Services, CONAWAY deserve special recognition as try. Washington, DC. COMMITTEE ON WAYS AND MEANS, DEAR CHAIRMAN SKELTON: I am writing well. I salute the HASC Defense Acqui- U.S. HOUSE OF REPRESENTATIVES, about H.R. 5013, the ‘‘Implementing Manage- sition Reform Panel that they have Washington, DC, April 21, 2010. ment for Performance and Related Reforms chaired for all of their hard work. Hon. IKE SKELTON, to Obtain Value in Every Acquisition Act of Under the leadership of Congressman Chairman, Committee on Armed Services, 2010’’, which the Committee on Armed Serv- ANDREWS and Congressman CONAWAY, Washington, DC. ices ordered reported on April 21, 2010. this panel and its seven members DEAR CHAIRMAN SKELTON: Thank you for I appreciate your efforts to consult with working with the Committee on Ways and the Committee on Oversight and Govern- delved into the complex world of de- Means (‘‘Committee’’) on H.R. 5013, the ‘‘Im- ment Reform regarding those provisions of fense acquisition. Over the last year, plementing Management for Performance H.R. 5013 that fall within the Oversight Com- the panel held more than 20 events and and Related Reforms to Obtain Value in mittee’s jurisdiction. These provisions in- supported the drafting and passage of Every Acquisition Act of 2010.’’ As you know, volve the federal workforce and federal ac- the Weapons System Acquisition Re- section 403 of H.R. 5013 is of jurisdictional in- quisition policy. form Act of 2009. Late last month, terest to the Committee as it would require In the interest of expediting consideration based upon their detailed study, the tax return information to be supplied by the of H.R. 5013, the Oversight Committee will panel released its final report con- Internal Revenue Service (‘‘IRS’’). not object to its consideration in the House. Generally, tax return information is con- I would, however, request your support for taining recommendations for improve- fidential. However, Section 6103(c) of the In- the appointment of conferees from the Over- ments to defense acquisition. On April ternal Revenue Code permits the Secretary sight Committee should H.R. 5013 or a simi- 14, I was proud to honor their efforts by of the Treasury to disclose the tax return in- lar Senate bill be considered in conference cosponsoring H.R. 5013, a bill that im- formation of a taxpayer to such person as with the Senate. Moreover, this letter should plements the panel’s recommendations. the taxpayer designates. The Committee not be construed to prejudice the Oversight Moreover, last week’s unanimous com- continues to monitor the expanding IRS Committee’s jurisdictional interest or pre- mittee vote on the bill speaks loudly to workload and remains concerned about pro- rogatives in the subject matter of H.R. 5013, the hard work that this team put into grams that greatly increase the agency’s or any other similar legislation. workload outside of its core mission. In cal- I request that you include our exchange of their task. endar year 2009, the IRS made nearly 11,000 letters on this matter in the Congressional Last year’s Weapons System Acquisi- tax disclosures under section 6103(c). It is un- Record during consideration of this legisla- tion Reform Act reformed the organi- known how many additional disclosures will tion on the House floor. zation and processes used by the De- be made under H.R. 5013. As such, the Com- Sincerely, partment of Defense to manage major mittee worked with the Armed Services EDOLPHUS TOWNS, weapons programs, which account for Committee to develop a provision that is ad- Chairman. approximately 20 percent of the Penta- ministrable by the IRS. The Committee re- mains committed to ensuring that any addi- COMMITTEE ON ARMED SERVICES, gon’s procurement spending. This year tional responsibilities imposed on the IRS do HOUSE OF REPRESENTATIVES, Congressmen ANDREWS and CONAWAY not strain agency resources and welcomes Washington, DC, April 23, 2010. tackled the other 80 percent. When you the opportunity to re-evaluate this provision Hon. EDOLPHUS TOWNS, consider that over 50 percent of the in the future. Chairman, Committee on Oversight and Govern- Pentagon’s procurement dollars are for As we have discussed, this exchange of let- ment Reform, House of Representatives, services contracts alone, the legisla- ters will be placed in the Committee Report Washington, DC. tion we intend to introduce today has on H.R. 5013 and inserted in the Congres- DEAR MR. CHAIRMAN: Thank you for your sional Record as part of the consideration of letter regarding your Committee’s jurisdic- the potential to effect major changes this legislation in the House. Thank you for tional interest in H.R. 5013, the Imple- at the Department of Defense and save the cooperative spirit in which you have menting Management for Performance and taxpayer dollars. worked with the Committee regarding this Related Reforms to Obtain Value in Every I believe these reforms are just as im- matter. Acquisition Act of 2010. portant as those implemented by last Sincerely, I appreciate your willingness to support year’s acquisition reform legislation. SANDER M. LEVIN, expediting floor consideration of this impor- First, because they address the remain- Chairman. tant legislation. I acknowledge that H.R. 5013 contains provisions under the jurisdic- ing 80 percent of defense acquisition, COMMITTEE ON ARMED SERVICES, tion of the Committee on Oversight and Gov- but more notably because true reform HOUSE OF REPRESENTATIVES, ernment Reform. I understand and agree can only be accomplished by the men Washington, DC, April 23, 2010. that your willingness to waive further con- and women of the acquisition work- Hon. SANDER LEVIN, sideration of the bill is without prejudice to force. Chairman, Committee on Ways and Means, your Committee’s jurisdictional interests in The bill provides tools to enhance the House of Representatives, Washington, DC. this or similar legislation in the future. In experience and structure of this work- DEAR MR. CHAIRMAN: Thank you for your the event of a House-Senate conference on force. Our legislation will help the De- letter regarding H.R. 5013, the Implementing this or similar legislation is convened, I Management for Performance and Related would support your request for an appro- partment of Defense design better ways Reforms to Obtain Value in Every Acquisi- priate number of conferees. to measure value within the defense ac- tion Act of 2010. I agree that the Committee I will include a copy of your letter and this quisition system, create a link between on Ways and Means has valid jurisdictional response in the Congressional Record in the financial management and acquisition,

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It does this I am pleased that many of my acqui- I think it’s important to pursue every by creating a better accountability sition reform priorities are included in avenue we can for savings. I personally system, improving the management of H.R. 5013. There is no doubt that there believe we should be spending more on the acquisition workforce, and expand- is a great need for enhanced account- our national security. But ultimately, ing and strengthening the industrial ability within the defense acquisition we have a responsibility to ensure that base. system. Maintaining our Nation’s de- we spend the money we do have as I routinely meet with small busi- fense industrial base is paramount. Re- wisely as possible. Nobody argues that nesses in San Diego that have so much cruiting, training, and retaining a pro- the Department of Defense faces rising to offer the defense world in the form fessional and experienced acquisition costs associated with military per- of quality products and efficient serv- workforce within the Department of sonnel and health care. When you cou- ices. Yet it has been frustrating to hear Defense is crucial to ensuring the best ple this reality with the fact that the from these very capable and resource- use of taxpayer dollars in the most DOD’s operating costs are migrating ful companies that they continually cost-effective way. We must also reem- from supplemental spending measures run into barriers. phasize the need for program stability One example is the negative impact into the base budget, the future for the beginning with realistic requirements contract bundling has on our industrial DOD’s investment accounts looks and periodic reassessments. base. Contract bundling is when mul- bleak. tiple requirements are combined into a The IMPROVE Acquisition Act of I am concerned that the depart- single contract. While in theory this 2010 will cut down on waste, fraud, and ment’s ability to invest in technology practice generates savings and speeds abuse, potentially saving billions of tax options for the future and to procure up the procurement cycle, it often dollars. It will also get the right equip- the equipment needed by our forces out small businesses that can’t ment to our warfighters sooner. warfighters will be curtailed. There- compete for large contracts. Especially If Representative GERRY CONNOLLY’s fore, anything we can do to save money now, at the brink of economic recov- amendment regarding the establish- and invest that savings back into our ery, our government needs to help ment of an Industrial Base Council is top national security priorities should bring more businesses into the DOD adopted today, I strongly urge that the be viewed as an imperative, not just as procurement system, not push them council consider the issue of supply a good thing. out. chain vulnerability, especially with re- In closing, I want to give special ac- So that’s why I am so pleased that spect to rare earth metals. knowledgment to the dedicated men the amendment I offered in committee I urge my colleagues to join me in and women of the defense acquisition to reduce contract bundling is included voting in favor of this important legis- workforce. They hold the key to im- in this bipartisan bill, because smaller lation. proving acquisition outcomes and im- firms are hurt when only a select num- Mr. SKELTON. Mr. Chairman, I yield plementing H.R. 5013 without falling ber of companies are able to bid for myself such time as I may consume. victim to bureaucracy. A significant DOD projects, and I also must say, so is Let me point out that this acquisi- challenge, but one for which that de- the American taxpayer hurt by that. tion legislation is based upon a com- partment has our full support. Mr. Chairman, I believe the IM- plicated set of facts. You just don’t go Mr. Chairman, I reserve the balance PROVE Act will help small businesses down to the local store and buy the of my time. and transform the defense acquisition necessary equipment for the young b 1200 process into a system the American men and young women in uniform. people can trust. Mr. SKELTON. Mr. Chairman, at this Many of the issues deal with the pro- Mr. MCKEON. Mr. Chairman, I am time let me pay tribute to members of duction, with the purchase, with the happy to yield such time as he may right sizing, and all of the intricacies our committee. BUCK MCKEON, the consume to the gentleman from Colo- ranking member, a gentleman of the and technologies of today’s high-level rado (Mr. COFFMAN), a member of the first order, is helping so very, very type of efforts. committee. So to explain all of this in much much to achieve end results in a bipar- Mr. COFFMAN of Colorado. Mr. greater detail is the gentleman who is tisan manner. National security is an Chairman, I am proud to stand before the key sponsor of this legislation, the American challenge. It is not a Demo- you today in strong support of H.R. gentleman who chaired the panel, and I crat or a Republican challenge but one 5013, the IMPROVE Acquisition Act of that is bipartisan. And I certainly ap- 2010. compliment him on the excellent job preciate his efforts. As a member of the House Armed that he and Mr. CONAWAY and the other ROB ANDREWS, MIKE CONAWAY, and Services Defense Acquisition Reform members of the panel did. So I yield at all those on the panel, the bipartisan Panel, I commend Chairman ROB AN- this time 5 minutes to my friend, the panel, which made the recommenda- DREWS and Ranking Member MIKE sponsor, the gentleman from New Jer- tions for this legislation did so unani- CONAWAY for their leadership over the sey (Mr. ANDREWS). mously. We had a full hearing, debat- past year as we delved into the com- (Mr. ANDREWS asked and was given ing the issues that arise in this bill, plex world of defense acquisition. permission to revise and extend his re- and it was passed out to this floor with Recently, based on our panel’s de- marks.) a vote of 56–0. So I want to say a spe- tailed study, we released our final re- Mr. ANDREWS. I thank my chair- cial thanks to the members of the port containing recommendations for man and mentor and friend for yield- Armed Services Committee, all the improvements to defense acquisition. ing. members, and especially the gentleman Today’s legislation implements our De- I want to begin by thanking Chair- from California (Mr. MCKEON) for his fense Acquisition Reform Panel’s rec- man SKELTON and Mr. MCKEON for untiring efforts in this regard. ommendation, and I am proud to co- their guidance and leadership. The two Mr. Chairman, I yield 2 minutes to sponsor this very important bill. As a of them have run the Armed Services my friend and my colleague, who is result of the panel’s efforts, this legis- Committee as I believe Congress should also the chairwoman of the Sub- lation reforms the remaining 80 per- run, on a factual, nonpartisan basis, committee on Military Personnel, the cent of the defense acquisition system and I appreciate very much the leader- gentlewoman from California (Mrs. not addressed by last year’s Weapon ship they have shown. I also want to DAVIS). Systems Acquisition Reform Act. specifically thank Congressman MIKE Mrs. DAVIS of California. Mr. Chair- These measures will potentially save CONAWAY of Texas, who is the senior man, for a bill designed to increase ef- billions of taxpayer dollars. Republican on the panel, who served

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They should be ments in the committee voting process; Here is what this bill is about: The compensated more for doing a good job and it will include a number of amend- Department of Defense, even after you and saving money for the taxpayer. ments that we will consider here today. take away the purchase of aircraft car- When they fail to do so, however, there So just as we’re trying to get the best riers or fighter jets or what have you, should be significant consequences, and and the brightest to contribute to the is spending almost $1 billion every day there are. process of buying a billion dollars a of the week, every week of the year. Another idea in this bill is that if a day worth of items, we try to get the Almost $1 billion. And sometimes the system would work well for the Marine very best ideas of the Members of this people who run that system of buying Corps or the Air Force, then there body, Democrat and Republican, on the everything from software to lawn mow- ought to be one system, not two or committee and not on the committee. ing services do a really good job. They three or four. And yet another idea is So I’d like to conclude by again provide value to the taxpayer and great before we buy services, we ought to thanking Chairman SKELTON, Ranking tools for our servicemembers. But think about what we really need before Member MCKEON, and Congressman that’s not always the case. we start spending money. CONAWAY for their work in making this A few years ago the Air Force went The second very good idea comes process work. I believe we have come to buy a refrigeration unit to put on a from Mr. CONAWAY, an issue he has pur- up with a product that will do very plane, and they paid $13,000 for the re- sued his entire time in the Congress, well by our servicemembers and do frigeration unit. Less than 24 months which is that every part of the Defense very well by our taxpayers as well. I later, they bought exactly the same re- Department should be auditable, mean- would urge careful consideration of the frigeration unit for the same sort of ing that auditors and accountants amendments as we go through the plane and paid $32,000 for the same ought to be able to look at the books afternoon, and I would obviously urge a thing. I would not want to go home, and see if the money is being spent on ‘‘yes’’ vote from both parties for final Mr. Chairman, to my spouse and ex- things it is supposed to be spent on, the passage of the bill. plain to her I had done that kind of way virtually every business and orga- Mr. MCKEON. Mr. Chairman, I’m cost overrun buying anything for our nization in America is today. happy to yield such time as he may household, and I don’t want to have to The third idea of this bill is our consume to the gentleman who has explain that to the American taxpayer workforce, that we not only enlarge served as the ranking member on the either. the number of people working in our panel, ranking member on the sub- A few years ago there was a contract purchasing organizations—— committee that had jurisdiction in this let, or at least discussed, to provide re- The SPEAKER pro tempore (Mr. area, the gentleman from Texas (Mr. fined petroleum products to truck MORAN of Virginia). The time of the CONAWAY). them from Kuwait up into Iraq, and it gentleman has expired. Mr. CONAWAY. I rise today in sup- was about a $220 million contract, and Mr. SKELTON. I yield the gentleman port of H.R. 5013, the IMPROVE Acqui- $201 million was paid for and com- an additional 5 minutes. sition Act of 2010. First, I want to mitted before the contract was even Mr. ANDREWS. I thank the chair. thank Chairman SKELTON and Ranking signed. This is a $220 million contract Not only do we want to increase the Member MCKEON for the trust and con- where $201 million was paid out before number of people working on solving fidence they placed in the Defense Ac- there was a written contract even this problem, we want to increase the quisition Reform Panel. I want to give signed. None of us, Mr. Chairman, quality of their work. So this bill pro- special thanks and commendation to would buy a house that way or an auto- vides for education and training. It my good friend, ROB ANDREWS, for the mobile that way or have our kitchen provides for diversification of our hard work he did in leading this effort. remodeled that way. Neither should workforce. It provides for the use of He led it very, very well. He proved the taxpayers here. the best and the brightest to get the once and for all that we can start When the Department of Defense job done. meetings on time and get our work buys software or hardware, when it The final aspect of this bill is to in- done, even if those meetings start at 8 buys information technology, from the duce and provide more competition in a.m. in the morning. So I have enjoyed time they think of what they need to the provision of goods and services to this work with ROB. He and I may not the time they actually start to use the our Department of Defense. You know, agree on certain things, but in this technology, it typically takes 81 somewhere in America today, there are arena and most things on the Armed months. Now, the way computer tech- probably a couple of people who are Services, we are in pretty good agree- nologies work these days is about scientists on a college campus or who ment, and on this work, full agree- every 18 months, computer power dou- are working in a tool and dye shop ment. I want to tell him thank you bles, which means that every 36 somewhere in the country who have a very much for the good work and his months or so what was a cutting-edge much better solution to some problem commitment to making this thing product is now obsolete. This would be than a person working for an immense work. the equivalent of using a phone that defense contractor. Now, if the im- The panel truly did approach its you used in 2003 as the phone you use mense defense contractor has the best work on a nonpartisan basis. In fact, if today. solution, that’s what we ought to buy. you were to read the transcript of the The phone that most of us used in But if the three people in the college hearings and read the questions with- 2003 just made phone calls, and we were lab or the five people in the tool and out the names attached, you could not happy that it did. Today the little ma- dye shop have a better idea, we need to tell or distinguish between a Repub- chines that our children and others get them into the competition so they lican question or a Democratic ques- carry around can record video, can can have their idea heard, have their tion. I think that speaks volumes for upload and download video, they can proposal heard, and if it’s the best one the way most of the work on the access the Internet, send text message, for the servicemembers and for the tax- Armed Services Committee occurs and e-mails, act as a GPS. Imagine using a payers, that’s the one that ought to be in particular the work of our panel. I 2003 phone in 2010. That’s the equiva- chosen. We refer to that as broadening was very proud to be a part of that and lent of what we’re doing when it takes and diversifying the industrial base. to lend my efforts. us 81 months to go from the idea of a I also want to thank Chairman SKEL- piece of technology to actually fielding b 1215 TON and Ranking Member MCKEON for it. I’m especially gratified, Mr. Chair- their generous praise for ROB and me, This bill changes that and it has a man, that, by my count, 43 Members of but I would be remiss if I don’t also ac- couple of key ideas. The first key idea this body will have written a part of knowledge the other dedicated mem- is that the people who are running this legislation by the time it reaches bers of the panel: JIM COOPER, DUNCAN

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Ad- did an outstanding job, Andrew Hunter will not be the proper accountability ministration after administration talk and Jenness Simler, who made this for acquisition costs or new require- about it; and then as soon as they work—they put this together and did ments. Perhaps every dime is in fact leave, we talk again about waste, the heavy drafting—as well as the staff being well spent. But we don’t know fraud, and abuse. Whether it’s a Repub- from my office, Serge Morosoff, for the that, the Department of Defense lican administration or Democratic ad- great job that they did in making this doesn’t know that, and the taxpayer ministration, we all talk about it, and work product come together as quickly doesn’t know that. Financial account- then we immediately talk about it as it did. ability must continue to be the high after the last administration has left. As ranking member of the Panel on priority. If correctly implemented, this Americans need to know that their dol- Defense Acquisition Reform, I can at- legislation will allow American tax lars are being spent correctly. That’s test that H.R. 5013 will truly be instru- dollars to be stretched further and will what this bill is focused on. Defense ac- mental in reforming the full range of have a substantial impact on waste, quisition reform is part of that work, the defense acquisition system. I be- fraud, and abuse. because defense spending accounts for lieve this bill will improve the way we I applaud the panel and the House nearly one-fifth of our Federal budget. measure value in acquisition, create a Armed Services Committee for adopt- We took an important step last year more responsive requirements process, ing these recommendations and en- when we passed and the President sustain the acquisition workforce, and courage each of the components of the signed the Weapons Systems Acquisi- will manage certain elements of the ac- Department of Defense to take full ad- tion Reform Act. quisition system. vantage of the incentives provided in I see we have now been rejoined by My colleague, Mr. ANDREWS, has this bill to accelerate the auditability the chairman of the committee, my talked at length about the reforms the of the financial statements of the De- good friend, IKE SKELTON. Chairman bill implements, but I would like to partment of Defense. Again, I want to SKELTON has been an extraordinary speak to one that’s a little dearer to thank my colleague, ROB ANDREWS, for chairman of that committee, and there my heart that’s a little less obvious the hard work he did in moving this is no person in the Congress who has but no less important, a provision that forward by his strength of will. fought harder to make sure that the plays a critical role in improving the In closing, I look forward to the quality of life for our members of our financial management practices of the progress this legislation will allow, and armed services is more attended to Department of Defense and provides in- I encourage my colleagues to vote for than Chairman IKE SKELTON of Mis- centives to achieve an unqualified this bill later on this afternoon. souri. I thank him for that. audit opinion for all of the Department Mr. ANDREWS. Mr. Chair, this bill But he also understands that we need of Defense. The publication of a clean has the potential to save $135 billion to spend our defense dollars smartly, audit, an unqualified audit of DOD over 5 years. I’m pleased to yield 1 without waste, and make sure that would finally give the American people minute to my friend and colleague, they are effective in providing our the confidence that their tax dollars someone who has made a career-long warfighters with the tools that they are, in fact, being accounted for and commitment to fiscal discipline, the need but make sure that the dollars we spent wisely in the defense of this majority leader of the House of Rep- spend to do that are done so effec- great Nation. resentatives, the gentleman from tively. Today, we can go a step further Since 1990, there’s been a require- Maryland (Mr. HOYER). than we went last year toward fiscally ment for the Federal Government to Mr. HOYER. I thank my friend for responsible defense spending which publish audited financial statements, yielding. I thank Mr. ANDREWS for his still ensures that our troops can ac- but the Federal Government is not in extraordinary work on making sure complish their mission, which is our compliance with that Federal law. A that our national defense is strong and number one objective. large share of the responsibility for ready and that our troops are provided The IMPROVE Acquisition Act con- that circumstance rests with the De- for as we put them in harm’s way. I tains a number of important provi- partment of Defense. The Department thank him for his leadership. I also sions, Mr. Chair, to eliminate waste of Defense is the largest agency in the want to thank Mr. MCKEON for his without compromising our military ef- Federal Government, owning about 68 leadership on the committee in helping fectiveness. While last year’s acquisi- percent of the government’s assets, es- to bring this bill to the floor. tion reform went a long way towards timated at $4.6 trillion. America faces a massive budget chal- eliminating waste in major defense ac- Over the last two decades, money has lenge, and it must be addressed. The quisition programs, this bill recognizes been spent by the Department of De- consequences of our dangerous budg- that more than 50 percent of the De- fense in an unsuccessful quest to ob- etary situation are truly wide-ranging. fense Department’s procurement budg- tain auditable financial statements. We all know where America’s et goes towards service contracts. As a There have been good people working unsustainable path of debt leads. result, the IMPROVE Acquisition Act very hard on this issue for a long, long Among other things, it leads to a dra- requires rigorous accountability and time, and good people today in the De- matically diminished American role in clear standards for DOD’s acquisition partment of Defense who are working the world. History has seen time and of services. The public expects no less hard at this issue. But we’re not there time again great powers forced into re- and deserves no less in the care of their yet. We have got a lot of work to go. treat by unbearable debt. Simply stat- dollars. It creates a better-trained and Quite frankly, we cannot allow these ed, they did not pay attention to the more professional acquisition work- past failures and past unsuccessful ef- bottom line. force, which ultimately, of course, forts to deter us from the heavy lift Democrats take that lesson seri- saves us money, and it brings more re- that’s ahead of us to get this job done. ously, which is why we made fiscal re- sponsible financial management to the I’m a CPA and I used to audit enti- sponsibility such a priority under Defense Department. ties. And I’m fully aware how hard this President Obama. We passed the As Chairman SKELTON, who worked is; it is not an easy task. But it is pos- PAYGO law, which ensures that Con- so hard on this bill, put it: ‘‘This legis- sible and it’s necessary to implement gress pays for what it buys. We passed lation will require DOD to adopt the the financial control systems necessary a health insurance reform bill that sig- basic management practices that are to generate auditable financial state- nificantly cuts the deficit. President necessary for anything as complex as ments. This bill ensures that DOD is no Obama has proposed a budget that the acquisition system to function longer held to a separate standard from freezes non-security discretionary properly.’’ I congratulate Chairman

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It’s pretty simple: Bad Our position in the world is depend- using them properly to manage their actors don’t just cheat us, they cheat ent on the brave efforts and sacrifice of business. So unlike previous efforts in the government of tax revenue, and our troops. But it also depends on our this regard, I think these improve- they also gain an unfair advantage demonstrating more responsibility ments are subject to being properly over businesses that are doing the here at home. Our long-term security oversighted, if that’s a proper word, by right thing. rests, to a great extent, on that chal- the Armed Services Committee, and I With that, I urge my colleagues to lenge. We need a national conversation know that we are committed to do support this provision. Vote for the IM- about balancing our budget, and this that. PROVE Acquisition Act. bill is an important part of achieving Mr. ANDREWS. Mr. Chairman, I am Mr. ANDREWS. Mr. Chair, at this that larger goal. I am pleased that we pleased now to yield 2 minutes to the time I yield 2 minutes to the gentle- bring it to the floor with bipartisan gentleman from Indiana (Mr. ELLS- lady from New Hampshire (Ms. SHEA- PORTER), the gentlelady who built on support. I’m pleased that we will pass WORTH), the author of a key provision it with bipartisan support. And I con- in this bill regarding tax cheats and de- the work Mr. ELLSWORTH just talked gratulate both the Chair, sub- fense contracts. about to make sure that same standard applies to subcontractors. committee Chair, and ranking mem- Mr. ELLSWORTH. Mr. Chair, I would Ms. SHEA-PORTER. I want to thank bers for their leadership on this bill like to thank the gentleman for yield- ing the time. Chairman SKELTON and everyone who and urge my colleagues to strongly has worked on the IMPROVE Acquisi- support it. I rise today in strong support of this critically important defense acquisi- tion Act. This bill cleans up defense ac- Mr. MCKEON. Mr. Chair, I reserve quisitions spending, saving taxpayers the balance of my time. tion reform legislation. Last year, Mr. Chair, Democrats and Republicans in an estimated $27 billion a year and ex- Mr. ANDREWS. At this time I am pediting the process to get necessary pleased to yield 1 minute to a new the House and Senate came together to pass bipartisan major weapons system equipment to our troops. member of the committee who clearly Accountability in the contracting acquisition reform legislation. Last understands the balance Mr. HOYER process is critical to protect taxpayer year’s reform effort aimed to reel in just spoke of between a strong national dollars. According to a Government the cost overruns of approximately $300 defense and fiscal responsibility, my Accountability Office report, 63,000 billion in major weapons systems. The friend, the gentleman from New Mexico Federal contractors had total tax debts bill we are considering today, the IM- (Mr. HEINRICH). of $7.7 billion in 2007. These contractors PROVE Acquisition Act, serves as a Mr. HEINRICH. Mr. Chairman, there profit through taxpayer dollars but worthy companion to the acquisition can be no dispute that our Nation’s refuse to pay their own taxes. That is reform overhaul by focusing on how warfighters deserve the most state-of- why I am pleased that section 403 of the-art equipment on the battlefield. the Department of Defense procures ap- this bill, based on my colleague Mr. proximately $200 billion a year in serv- They risk their lives in defense of our ELLSWORTH’s Contracting and Tax Ac- Nation. In turn, we must protect them ices. countability Act, requires contractors The ideas included in this bill were with the most innovative technologies to disclose seriously delinquent tax realized through a year’s worth of available. However, far too often the debt. Department of Defense’s acquisition hearings held by the Defense Acquisi- The bill also includes my amendment system has been compromised by tion Reform Panel. I was honored to to hold the first-tier subcontractors ac- waste, abuse, and even fraud. I applaud participate in the seven-member panel countable by adding a certification re- the DOD acquisition panel for working which was tasked by Chairman IKE quirement to ensure they, too, do not on this problem. SKELTON to conduct a comprehensive have unpaid taxes. Those who have in- Last week, in the House Armed Serv- review of the defense acquisition sys- curred a significant tax debt and have ices Committee, we unanimously tem. Thanks to the focused leadership avoided paying it should not be eligible passed H.R. 5013, the IMPROVE Acqui- of Chairman ROB ANDREWS and Rank- for defense contracts. There is no rea- sition Act, to put the panel’s rec- ing Member MIKE CONAWAY, the panel son for the government to pay money ommendations into action. The IM- put forward final recommendations through a contract to those who owe PROVE Acquisition Act will bring that have guided us to this point. money to the government in taxes. strategic financial management to the Today we will be voting on a reform Again, I would like to thank the Department’s acquisition system and package that will strengthen the de- chairman, ranking member, and De- save taxpayers an estimated $135 bil- fense acquisition workforce. fense Acquisition Panel for their hard lion over the next 5 years. I would also like to thank Chairman work on this bill. ANDREWS for working with me to in- Mr. ANDREWS. Mr. Chairman, I am 1230 b clude a commonsense contractor tax pleased to yield 2 minutes to my friend This bill will ensure that our service- compliance provision in this bill. This and colleague, the gentlelady from members have the most advanced re- is an issue I’ve been working on for ap- Massachusetts (Ms. TSONGAS), who sources while making the most effi- proximately 3 years, and I will con- brought the expertise of a technical cient use of taxpayer dollars. Our men tinue to do so until it’s fully enacted. base in her district to the deliberations and women in uniform deserve no less, The provision is quite simple. It re- on this bill. and I would urge my colleagues to sup- quires companies seeking a defense Ms. TSONGAS. I thank my colleague port this legislation. contract to prove they are in good Mr. ANDREWS, and I rise today in sup- Mr. CONAWAY. One comment and standing with the Internal Revenue port of the IMPROVE Acquisition Act then I will reserve, and that is that Service. To do this, a company must of 2010. I applaud the efforts of my col- some of the criticisms about the mul- certify they carry no serious delin- leagues on the House Armed Services titude of defense acquisition reform quent tax debt. The Department of De- Committee and believe we have made a studies and laws and bills that line the fense will not merely rely on their real step forward in improving the ac- shelves of many offices is that they word. The company must allow the quisition process, a process beset by haven’t worked. This one, Mr. Chair, I Treasury Department to verify the cer- issues such as cost overruns and ever- would argue will have a better chance tification. False certification will be changing requirements. of working with proper oversight by reported to a contractor’s integrity This is good legislation that reflects the Armed Services Committee, which database. This is a practical and cost- a bipartisan effort to combat waste, in- I know the chairman and the ranking effective way to ensure all companies crease efficiency, and get good value

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Mr. Chairman, again, port, for example, that this bill re- more of a priority. I would like to thank the Members for quires better communication with and The Department of Defense spends billions their cooperation and for your steward- stability for our industrial base. I also of taxpayer dollars each year, but minority, ship of this debate. applaud legislative mandates that re- women, and veteran-owned businesses are I yield back the balance of my time. quire contracting for best value and not getting to participate. I often use my The Acting CHAIR. All time for gen- provisions that enhance the Defense grandma’s sweet potato pie as an example. eral debate has expired. Department’s ability to control costs We all pay for the ingredients and we should Pursuant to the rule, the amendment while, most importantly, protecting all get a slice. But they can’t even get a sliver. in the nature of a substitute printed in our soldiers. These same big companies keep getting all the bill shall be considered as an origi- My thanks to the Acquisition Panel the contracts and make little effort to include nal bill for the purpose of amendment members and staff for their hard work, smaller companies. This is completely unac- under the 5-minute rule and shall be careful study, and dedicated effort to ceptable. considered read. the task at hand, and I urge passage of The Defense Department doesn’t need to The text of the committee amend- this landmark legislation. look any further than the Department of Trans- ment in the nature of a substitute is as Mr. MCKEON. Mr. Chairman, we have portation in seeking a model for including mi- follows: no further speakers at this time, and nority participation. The DOT has a strong pro- H.R. 5013 we will continue to reserve. gram for inclusion and I would encourage the Be it enacted by the Senate and House of Rep- Mr. ANDREWS. Mr. Chairman, the Department of Defense to ensure that they de- resentatives of the United States of America in only thing I would like to do in general velop a system that included minority, women, Congress assembled, debate is thank the staff and other and veteran-owned businesses. These are SECTION 1. SHORT TITLE. Members and read their names into the their tax dollars we are spending and they de- This Act may be cited as the ‘‘Implementing RECORD. With that, we would close gen- serve to be at the table. Management for Performance and Related Re- eral debate. I am pleased to see that Section 401 of the forms to Obtain Value in Every Acquisition Act of 2010’’. Mr. MCKEON. We are willing to con- bill expands the industrial base by identifying SEC. 2. DEFINITION OF CONGRESSIONAL DE- cur in the thanks to the staff and to all non-traditional suppliers and using tools and FENSE COMMITTEES. those who have worked so hard. I en- resources available within the Federal Govern- In this Act, the term ‘‘congressional defense courage our colleagues to vote in sup- ment and in the private sector. committees’’ has the meaning given that term in port of this bill. This legislation is a good vehicle to make section 101(a)(16) of title 10, United States Code. I yield back the balance of my time. sure that Congress and the Department of De- SEC. 3. TABLE OF CONTENTS. Mr. ANDREWS. Mr. Chairman, again, fense work to minimize discrimination and in- The table of contents for this Act is as follows: I want to begin by thanking Chairman clude all companies in the defense of our na- Sec. 1. Short title. SKELTON and Ranking Member MCKEON tion. Sec. 2. Definition of congressional defense com- for their extraordinary efforts. I want Small and minority businesses are the back- mittees. to associate myself with the remarks bone of our economy. We need to make sure Sec. 3. Table of contents. of Mr. CONAWAY in thanking the other all companies have an opportunity to con- TITLE I—DEFENSE ACQUISITION SYSTEM panel members—Mr. COOPER, Mr. ELLS- tribute to our national defense. Sec. 101. Performance management of the de- WORTH, Mr. SESTAK on our side, and Mr. Mr. VAN HOLLEN. Mr. Chairman, I want to fense acquisition system. Sec. 102. Meaningful consideration by Joint Re- COFFMAN and Mr. HUNTER on the Re- thank Chairman SKELTON and Ranking Mem- quirements Oversight Council of publican side. The panel members all ber MCKEON for their efforts in crafting this im- input from certain officials. worked very hard on this, and we ap- portant, bi-partisan bill to reform the acquisi- Sec. 103. Performance management for the Joint preciate that. tion system of the Department of Defense. I Capabilities Integration and De- We obviously want to extend our ap- would also like to commend Congressmen AN- velopment System. preciation to the incredible members of DREWS and CONAWAY for their leadership and Sec. 104. Requirements for the acquisition of the staff of the committee and the for their many vital contributions to the legisla- services. panel. I want to thank Andrew Hunter, tion. Sec. 105. Joint evaluation task forces. who did a tremendous job on this; Reports of waste, fraud and abuse in the Sec. 106. Review of defense acquisition guid- ance. Cathy Garman, who particularly DoD acquisition system have been the source Sec. 107. Requirement to include references to worked very hard on the issues regard- of great concern for Members of Congress for services contracting throughout ing labor relations; Jenness Simler, many years. As a result, a congressional the Federal Acquisition Regula- who was an all-star on last year’s bill panel was established to carry out a com- tion. and once again proved her impeccable prehensive review of the DoD acquisition sys- Sec. 108. Procurement of military purpose non- credentials; Zach Steacy; Jennifer tem. Led by Representatives ANDREWS and developmental items. Kohl; Paul Arcangeli, who is our brand- CONAWAY, this panel held more than a dozen TITLE II—DEFENSE ACQUISITION new staff director; Bob Simmons; hearings exploring a broad range of issues WORKFORCE Kevin Gates; Mary Kate Cunningham; within the acquisition system. Their findings Sec. 201. Acquisition workforce excellence. Debra Wada; Megan Howard; Matt Bell, and recommendations resulted in a report that Sec. 202. Amendments to the acquisition work- force demonstration project. who worked very tirelessly on this in is the basis of the IMPROVE Acquisition Act Sec. 203. Incentive programs for civilian and my office, and I appreciate his excel- of 2010. military personnel in the acquisi- lent efforts; Phil MacNaughton; and The IMPROVE Act is designed to overhaul tion workforce. Lara Battles. And if there are any oth- the entire defense acquisition system. It re- Sec. 204. Career development for civilian and ers, I apologize for that, but there was quires DoD to introduce effective account- military personnel in the acquisi- extraordinary work. ability measures into its requirements process tion workforce. Mr. Chairman, did you want to add to create an acquisition system with clear ob- Sec. 205. Recertification and training require- anything during general debate? jectives and meaningful consequences for ments. Sec. 206. Information technology acquisition Mr. SKELTON. No. I appreciate the success or failure. Not only will the bill encour- workforce. gentleman from New Jersey. I have age the development and deployment of im- Sec. 207. Definition of acquisition workforce. nothing further to add, except that proved financial management techniques with- Sec. 208. Defense Acquisition University cur- hopefully this bill will receive a unani- in the DoD, it will also enhance competition riculum review. mous vote at a later moment. and increase access to more innovative tech- Sec. 209. Cost estimating internship and schol- Ms. CORRINE BROWN of Florida. Thank nology. arship programs. you, Mr. Chair, for your leadership and hard As our Nation struggles through these dif- TITLE III—FINANCIAL MANAGEMENT work on defense acquisition and making sure ficult economic times, this common sense ini- Sec. 301. Incentives for achieving auditability.

VerDate Mar 15 2010 03:25 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00022 Fmt 4634 Sfmt 6343 E:\CR\FM\K28AP7.034 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2961 Sec. 302. Measures required after failure to shall be appropriately tailored pursuant to sub- and Defense Agency and including classified achieve auditability. section (a)(3) and may include measures of— and proprietary information) that the Director Sec. 303. Review of obligation and expenditure ‘‘(A) cost, quality, and delivery; considers necessary to review in order to per- thresholds. ‘‘(B) contractor performance; form or oversee performance assessments pursu- TITLE IV—INDUSTRIAL BASE ‘‘(C) excessive use of contract bundling and ant to this section. availability of non-bundled contract vehicles; ‘‘(f) DEFINITIONS.—In this section: Sec. 401. Expansion of the industrial base. ‘‘(D) workforce quality and program manager ‘‘(1) The term ‘defense acquisition system’ Sec. 402. Commercial pricing analysis. tenure (where applicable); means the acquisition workforce; the process by Sec. 403. Contractor and grantee disclosure of ‘‘(E) the quality of market research; which the Department of Defense manages the delinquent Federal tax debts. ‘‘(F) appropriate use of integrated testing; Sec. 404. Independence of contract audits and acquisition of goods and services, including ‘‘(G) appropriate consideration of long-term weapon systems, commodities, commercial and business system reviews. sustainment; and Sec. 405. Blue ribbon panel on eliminating bar- military unique services, and information tech- ‘‘(H) appropriate acquisition of technical data nology; and the management structure for car- riers to contracting with the De- and other rights and assets necessary to support partment of Defense. rying out the acquisition function within the long-term sustainment. Department of Defense. Sec. 406. Inclusion of the providers of services ‘‘(2) Each service acquisition executive within and information technology in the ‘‘(2) The term ‘element of the defense acquisi- the Department of Defense shall establish goals tion system’ means an organization that oper- national technology and indus- and standards (including, at a minimum, a trial base. ates within the defense acquisition system and threshold standard and an objective goal) for that focuses primarily on acquisition. TITLE I—DEFENSE ACQUISITION SYSTEM each metric established under paragraph (1) by ‘‘(3) The term ‘metric’ means a specific meas- SEC. 101. PERFORMANCE MANAGEMENT OF THE the executive. In establishing the goals and ure that serves as a basis for comparison. DEFENSE ACQUISITION SYSTEM. standards for an element of the defense acquisi- ‘‘(4) The term ‘threshold performance stand- (a) PERFORMANCE MANAGEMENT OF THE DE- tion system, a service acquisition executive shall ard’ means the minimum acceptable level of per- FENSE ACQUISITION SYSTEM.— consult with the head of the element to the max- formance in relation to a metric. (1) IN GENERAL.—Part IV of title 10, United imum extent practicable, but the service acquisi- ‘‘(5) The term ‘objective performance goal’ States Code, is amended by inserting after chap- tion executive shall retain the final authority to means the most desired level of performance in ter 148 the following new chapter: determine the goals and standards established. relation to a metric. ‘‘CHAPTER 149—PERFORMANCE MANAGE- The service acquisition executive shall update ‘‘(6) The term ‘Office of Performance Assess- MENT OF THE DEFENSE ACQUISITION the goals and standards as necessary and ap- ment and Root Cause Analysis’ means the office SYSTEM propriate consistent with the guidance issued reporting to the senior official designated by the under subsection (b)(2). Secretary of Defense under section 103(a) of the ‘‘Sec. ‘‘(3) The Under Secretary of Defense for Ac- Weapon Systems Acquisition Reform Act of 2009 ‘‘2545. Performance assessment of the defense quisition, Technology, and Logistics shall peri- (Public Law 111–23, 10 U.S.C. 2430 note). acquisition system. odically review the metrics, goals, and stand- ‘‘2546. Audits of performance assessment. ‘‘§ 2546. Audits of performance assessment ards established by service acquisition execu- ‘‘2547. Use of performance assessments for man- ‘‘(a) AUDITS REQUIRED.—The Secretary of De- tives under this subsection to ensure that they aging performance. fense shall ensure that the performance assess- ‘‘2548. Acquisition–related functions of the are consistent with the guidance issued under ments of the defense acquisition system required Chiefs of Staff of the armed subsection (b)(2). by section 2545 of this title are subject to peri- ‘‘(d) RESPONSIBILITY FOR OVERSIGHT AND DI- forces. odic audits to determine the accuracy, reli- RECTION OF PERFORMANCE ASSESSMENTS.—(1) ability, and completeness of such assessments. ‘‘§ 2545. Performance assessment of the de- Performance assessments required by subsection fense acquisition system ‘‘(b) STANDARDS AND APPROACH.—In per- (a) shall either be carried out by, or shall be forming the audits required by subsection (a), ‘‘(a) PERFORMANCE ASSESSMENTS REQUIRED.— subject to the oversight of, the Director of the the Secretary shall ensure that such audits— (1) The Secretary of Defense shall ensure that Office of Performance Assessment and Root ‘‘(1) comply with generally accepted govern- all elements of the defense acquisition system Cause Analysis. The authority and responsi- ment auditing standards issued by the Comp- are subject to regular performance assessments— bility granted by this subsection is in addition to troller General; ‘‘(A) to determine the extent to which such any other authority or responsibility granted to ‘‘(2) use a risk-based approach to audit plan- elements deliver appropriate value to the De- the Director of the Office of Performance Assess- ning; and partment of Defense; and ment and Root Cause Analysis by the Secretary ‘‘(3) appropriately account for issues associ- ‘‘(B) to enable senior officials of the Depart- of Defense or by any other provision of law. In ated with auditing assessments of activities oc- ment of Defense to manage the elements of the the performance of duties pursuant to this sec- curring in a contingency operation. defense acquisition system to maximize their tion, the Director of the Office of Performance ‘‘§ 2547. Use of performance assessments for value to the Department. Assessment and Root Cause analysis shall co- managing performance ‘‘(2) The performance of each element of the ordinate with the Deputy Chief Management defense acquisition system shall be assessed as Officer to ensure that performance assessments ‘‘(a) IN GENERAL.—The Secretary of Defense needed, but not less often than annually. carried out pursuant to this section are con- shall ensure that the results of performance as- ‘‘(3) The Secretary shall ensure that the per- sistent with the performance management initia- sessments are used in the management of ele- formance assessments required by this sub- tives of the Department of Defense. ments of the defense acquisition system through section are appropriately tailored to reflect the ‘‘(2) A performance assessment may be carried direct linkages between the results of a perform- diverse nature of defense acquisition so that the out by an organization under the control of the ance assessment and the following: performance assessment of each element of the service acquisition executive of a military de- ‘‘(1) The size of the bonus pool available to defense acquisition system accurately reflects partment if— the workforce of an element of the defense ac- the work performed by such element. ‘‘(A) the assessment fulfills the requirements quisition system. ‘‘(b) SYSTEMWIDE CATEGORIES.—(1) The Sec- of subsection (a); ‘‘(2) Rates of promotion in the workforce of an retary of Defense shall establish categories of ‘‘(B) the organization is approved to carry out element of the defense acquisition system. metrics for the defense acquisition system, in- the assessment by the Director of the Office of ‘‘(3) Awards for acquisition excellence. ‘‘(4) The scope of work assigned to an element cluding, at a minimum, categories relating to Performance Assessment and Root Cause Anal- of the defense acquisition system. cost, quality, delivery, workforce, and policy im- ysis; and ‘‘(b) ADDITIONAL REQUIREMENTS.—The Sec- plementation that apply to all elements of the ‘‘(C) the assessment is subject to the oversight retary of Defense shall ensure that actions defense acquisition system. of the Director of the Office of Performance As- taken to manage the acquisition workforce pur- ‘‘(2) The Secretary of Defense shall issue guid- sessment and Root Cause Analysis in accord- suant to subsection (a) are undertaken in ac- ance for service acquisition executives within ance with paragraph (1). cordance with the requirements of subsections the Department of Defense on the establishment ‘‘(e) RETENTION AND ACCESS TO RECORDS OF (c) and (d) of section 1701a of this title. of metrics, and goals and standards relating to PERFORMANCE ASSESSMENTS WITHIN THE MILI- such metrics, within the categories established TARY DEPARTMENTS AND DEFENSE AGENCIES.— ‘‘§ 2548. Acquisition–related functions of the by the Secretary under paragraph (1) to ensure The Secretary of Defense shall ensure that in- Chiefs of Staff of the armed forces that there is sufficient uniformity in perform- formation from performance assessments of all ‘‘(a) ASSISTANCE.—The Secretary of Defense ance assessments across the defense acquisition elements of the defense acquisition system are shall ensure, notwithstanding section system so that elements of the defense acquisi- retained electronically and that the Director of 3014(c)(1)(A), section 5014(c)(1)(A), and section tion system can be meaningfully compared. the Office of Performance Assessment and Root 8014(c)(1)(A) of this title, that the Chief of Staff ‘‘(c) METRICS, GOALS, AND STANDARDS.—(1) Cause Analysis— of the Army, the Chief of Naval Operations, the Each service acquisition executive of the De- ‘‘(1) promptly receives the results of all per- Chief of Staff of the Air Force, and the Com- partment of Defense shall establish metrics to be formance assessments conducted by an organi- mandant of the Marine Corps assist the Sec- used in the performance assessments required by zation under the control of the service acquisi- retary of the military department concerned in subsection (a) for each element of the defense tion executive of a military department; and the performance of the following acquisition-re- acquisition system for which such executive is ‘‘(2) has timely access to any records and data lated functions of such department: responsible within the categories established by in the Department of Defense (including the ‘‘(1) The development of requirements relating the Secretary under subsection (b). Such metrics records and data of each military department to the defense acquisition system.

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00023 Fmt 4634 Sfmt 6333 E:\CR\FM\A28AP7.009 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2962 CONGRESSIONAL RECORD — HOUSE April 28, 2010 ‘‘(2) The development of measures to control to the area of responsibility or functions of that (E) Such other outcomes as the Secretary shall requirements creep in the defense acquisition command will be under consideration by the determine appropriate. system. Council.’’. (d) IMPLEMENTATION.—The program required ‘‘(3) The development of career paths in ac- (b) AMENDMENT RELATED TO REPORT.—Para- by subsection (a) shall be developed and ini- quisition for military personnel (as required by graph (2) of section 105(c) of the Weapon System tially implemented not later than one year after section 1722a of this title). Acquisition Reform Act of 2009 (Public Law 111– the date of the enactment of this Act and shall ‘‘(4) The assignment and training of con- 23; 123 Stat. 1718) is amended to read as follows: apply to requirements documents entering the tracting officer representatives when such rep- ‘‘(2) MATTERS COVERED.—The report shall in- requirements process after the date of initial im- resentatives are required to be members of the clude, at a minimum, an assessment of— plementation. armed forces because of the nature of the con- ‘‘(A) the extent to which the Council has ef- (e) INITIAL REPORT.—Not later than 90 days tract concerned. fectively sought, and the commanders of the after the initial implementation of the program ‘‘(b) DEFINITIONS.—In this section: combatant commands have provided, meaning- required by subsection (a), the Secretary shall ‘‘(1) The term ‘requirements creep’ means the ful input on proposed joint military require- submit to the congressional defense committees a addition of new technical or operational speci- ments; report on the steps taken to develop and imple- ‘‘(B) the extent to which the Council has fications after a requirements document is ap- ment the performance management program for meaningfully considered the input and expertise proved. joint military requirements. The report shall ad- of the Under Secretary of Defense for Acquisi- ‘‘(2) The term ‘requirements document’ means dress the measures specified in subsection (c)(1). tion, Technology, and Logistics in its discus- a document produced in the requirements proc- (f) FINAL REPORT.—Not later than four years sions; after the initial implementation of the program ess that is provided for an acquisition program ‘‘(C) the extent to which the Council has required by subsection (a), the Secretary shall to guide the subsequent development, produc- meaningfully considered the input and expertise submit to the congressional defense committees a tion, and testing of the program and that— of the Director of Cost Assessment and Program report on the effectiveness of the program for ‘‘(A) justifies the need for a materiel ap- Evaluation in its discussions; proach, or an approach that is a combination of ‘‘(D) the quality and effectiveness of efforts to joint military requirements in achieving the out- materiel and non-materiel, to satisfy one or estimate the level of resources needed to fulfill comes specified in subsection (c)(2). more specific capability gaps; joint military requirements; and (g) DEFINITIONS.—In this section: ‘‘(B) details the information necessary to de- ‘‘(E) the extent to which the Council has con- (1) REQUIREMENTS PROCESS.—The term ‘‘re- velop an increment of militarily useful, sidered trade-offs among cost, schedule, and quirements process’’ means the Joint Capabili- logistically supportable, and technically mature performance objectives.’’. ties Integration and Development System (JCIDS) process or any successor to such process capability, including key performance param- SEC. 103. PERFORMANCE MANAGEMENT FOR THE eters; or JOINT CAPABILITIES INTEGRATION established by the Chairman of the Joint Chiefs ‘‘(C) identifies production attributes required AND DEVELOPMENT SYSTEM. of Staff to support the statutory responsibility for a single increment of a program.’’. (a) REQUIREMENT FOR PROGRAM.—The Sec- of the Joint Requirements Oversight Council in (2) CLERICAL AMENDMENTS.—The table of retary of Defense shall ensure that the Depart- advising the Chairman and the Secretary of De- chapters at the beginning of subtitle A of title ment of Defense develops and implements a pro- fense in identifying, assessing, and validating 10, United States Code, and at the beginning of gram to manage performance in establishing joint military capability needs, with their asso- part IV of such subtitle, are each amended by joint military requirements pursuant to section ciated operational performance criteria, in order inserting after the item relating to chapter 148 181 of title 10, United States Code. to successfully execute missions. the following new item: (b) LEADERS.—The Secretary of Defense shall (2) REQUIREMENTS DOCUMENT.—The term ‘‘re- designate an officer identified or designated as quirements document’’ means a document pro- ‘‘149. Performance Management of the a joint qualified officer to serve as leader of a duced in the requirements process that is pro- Defense Acquisition System ...... 2545’’. joint effort to develop the performance manage- vided for an acquisition program to guide the (b) PHASED IMPLEMENTATION OF PERFORM- ment program required by subsection (a). The subsequent development, production, and test- ANCE ASSESSMENTS.—The Secretary of Defense Secretary shall also designate an officer from ing of the program and that— shall implement the requirements of chapter 149 each Armed Force to serve as leader of the effort (A) justifies the need for a materiel approach, of title 10, United States Code, as added by sub- within the Armed Force concerned. Officers des- or an approach that is a combination of materiel section (a), in a phased manner while guidance ignated pursuant to this section shall have the and non-materiel, to satisfy one or more specific is issued, and categories, metrics, goals, and seniority and authority necessary to oversee and capability gaps; standards are established. Implementation shall direct all personnel engaged in establishing joint (B) details the information necessary to de- begin with a cross section of elements of the de- military requirements within the Joint Staff or velop an increment of militarily useful, fense acquisition system representative of the within the Armed Force concerned. logistically supportable, and technically mature entire system and shall be completed for all ele- (c) MATTERS COVERED.—The program devel- capability, including key performance param- ments not later than two years after the date of oped pursuant to subsection (a) shall: eters; or the enactment of this Act. (1) Measure the following in relation to each (C) identifies production attributes required SEC. 102. MEANINGFUL CONSIDERATION BY joint military requirement: for a single increment of a program. JOINT REQUIREMENTS OVERSIGHT (A) The time a requirements document takes (3) REQUIREMENTS CREEP.—The term ‘‘require- COUNCIL OF INPUT FROM CERTAIN to receive validation through the requirements ments creep’’ means the addition of new tech- OFFICIALS. process. nical or operational specifications after a re- (a) ADVISORS TO THE JOINT REQUIREMENTS (B) The quality of cost information associated quirements document is approved. OVERSIGHT COUNCIL.— with the requirement and the extent to which (h) DISCRETIONARY IMPLEMENTATION AFTER 5 (1) ADDITIONAL CIVILIAN ADVISORS.—Sub- cost information was considered during the re- YEARS.—After the date that is five years after section (d)(1) of section 181 of title 10, United quirements process. the initial implementation of the performance States Code, is amended by striking ‘‘The Under (C) The extent to which the requirements management program under this section, the re- Secretary’’ and all that follows through ‘‘and process established a meaningful level of pri- quirement to implement a program under this expertise.’’ and inserting the following: ‘‘The ority for the requirement. section shall be at the discretion of the Sec- following officials of the Department of Defense (D) The extent to which the requirements retary of Defense. shall serve as advisors to the Council on matters process considered trade-offs between cost, schedule, and performance objectives. SEC. 104. REQUIREMENTS FOR THE ACQUISITION within their authority and expertise: OF SERVICES. (E) The quality of information on sustainment ‘‘(A) The Under Secretary of Defense for Ac- (a) PROCESS REQUIRED.—The Secretary of De- associated with the requirement and the extent quisition, Technology, and Logistics. fense shall ensure that each military department to which sustainment information was consid- ‘‘(B) The Under Secretary of Defense (Comp- establishes a process for identifying, assessing, troller). ered during the requirements process. (F) Such other matters as the Secretary shall and approving requirements for the acquisition ‘‘(C) The Under Secretary of Defense for Pol- determine appropriate. of services, and that commanders of unified icy. (2) Achieve, to the maximum extent prac- combatant commands and other officers identi- ‘‘(D) The Director of Cost Assessment and ticable, the following outcomes in the require- fied or designated as joint qualified officers Program Evaluation.’’. ments process: have an opportunity to participate in the proc- (2) ROLE OF COMBATANT COMMANDERS AS (A) Timeliness in delivering capability to the ess of each military department to provide input MEMBERS OF THE JROC.—Paragraph (1) of sub- warfighter. on joint requirements for the acquisition of serv- section (c) of such section is amended— (B) Mechanisms for controlling requirements ices. (A) by striking ‘‘and’’ at the end of subpara- creep. (b) GUIDANCE AND PLAN REQUIRED.—The graph (D); (C) Responsiveness to fact-of-life changes oc- Chief of Staff of the Army, the Chief of Naval (B) by striking the period at the end of sub- curring after the approval of a requirements Operations, the Chief of Staff of the Air Force, paragraph (E) and inserting ‘‘; and’’; and document, including changes to the threat envi- and the Commandant of the Marine Corps (C) by adding at the end the following new ronment, the emergence of new capabilities, or shall— subparagraph: changes in the resources estimated to procure or (1) issue and maintain guidance relating to ‘‘(F) when directed by the chairman, the com- sustain a capability. each process established under subsection (a); mander of any combatant command (or, as di- (D) The development of the personnel skills, and rected by that commander, the deputy com- capacity, and training needed for an effective (2) develop a plan to implement each process mander of that command) when matters related and efficient requirements process. established under subsection (a).

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(c) MATTERS REQUIRED IN GUIDANCE.—The procurement, or fielding of a new item, or of a United States Code, is amended by adding at the guidance issued under subsection (b) shall es- modification to an existing item, necessary to end the following new section: tablish, in relation to a process for identifying, equip, operate, maintain, and support military ‘‘§ 2410r. Military purpose nondevelopmental assessing, and approving requirements for the activities. items acquisition of services, the following: SEC. 106. REVIEW OF DEFENSE ACQUISITION (1) Organization of such process. GUIDANCE. ‘‘(a) DEFINITIONS.—In this section: (2) The level of command responsibility re- (a) REVIEW OF GUIDANCE.—The Secretary of ‘‘(1) The term ‘military purpose nondevelop- quired for identifying and validating require- Defense shall review the acquisition guidance of mental item’ means an item— ments for the acquisition of services in accord- the Department of Defense, including, at a min- ‘‘(A) developed exclusively at private expense; ance with the categories established under sec- imum, the guidance contained in Department of ‘‘(B) that meets a validated military require- tion 2330(a)(1)(C) of title 10, United States Code. Defense Instruction 5000.02 entitled ‘‘Operation ment and for which the United States has rights (3) The composition of billets necessary to op- of the Defense Acquisition System’’. in technical data as prescribed in section erate such process. (b) MATTERS CONSIDERED.—The review per- 2320(a)(2)(B) of this title, as certified in writing (4) The training required for personnel en- formed under subsection (a) shall consider— by the responsible program manager; gaged in such process. (1) the extent to which it is appropriate to ‘‘(C) for which delivery of an initial lot of pro- (5) The relationship between doctrine and apply guidance relating to the acquisition of duction-representative items may be made with- such process. weapon systems to acquisitions not involving in nine months after contract award; and (6) Methods of obtaining input on joint re- weapon systems (including the acquisition of ‘‘(D) for which the unit cost is less than quirements for the acquisition of services. commercial goods and commodities, commercial $10,000,000. (7) Procedures for coordinating with the ac- and military unique services, and information ‘‘(2) The term ‘item’ has the meaning provided quisition process. technology); in section 2302(3) of this title. (8) Considerations relating to opportunities (2) whether long-term sustainment of weapon ‘‘(b) REQUIREMENTS.—The Secretary of De- for strategic sourcing. systems is appropriately emphasized; fense shall ensure that, with respect to a con- (d) MATTERS REQUIRED IN IMPLEMENTATION (3) whether appropriate mechanisms exist to tract for the acquisition of a military purpose PLAN.—Each plan required under subsection (b) communicate information relating to the mission nondevelopmental item, the following require- shall provide for initial implementation of a needs of the Department of Defense to the in- ments apply: process for identifying, assessing, and approving dustrial base in a way that allows the industrial ‘‘(1) The contract shall be awarded using com- requirements for the acquisition of services not base to make appropriate investments in infra- petitive procedures in accordance with section later than 180 days after the date of the enact- structure, capacity, and technology development 2304 of this title. ment of this Act and shall provide for full imple- to help meet such needs; ‘‘(2) Certain contract clauses, as specified in mentation of such process at the earliest date (4) the extent to which earned value manage- regulations prescribed under subsection (c), practicable. ment should be required on acquisitions not in- shall be included in each such contract. (e) CONSISTENCY WITH JOINT GUIDANCE.— volving the acquisition of weapon systems and ‘‘(3) The type of contract used shall be a firm, Whenever, at any time, guidance is issued by whether measures of quality and technical per- fixed price type contract. the Chairman of the Joint Chiefs of Staff relat- formance should be included in any earned ‘‘(c) REGULATIONS.—The Secretary of Defense ing to requirements for the acquisition of serv- value management system; shall prescribe regulations to carry out this sec- ices, each process established under subsection (5) the extent to which it is appropriate to tion. Such regulations shall be included in regu- (a) shall be revised in accordance with such apply processes primarily relating to the acqui- lations of the Department of Defense prescribed joint guidance. sition of weapon systems to the acquisition of as part of the Federal Acquisition Regulation. (f) DEFINITION.—The term ‘‘requirements for information technology systems, consistent with At a minimum, the regulations shall include— the acquisition of services’’ means objectives to the requirement to develop an alternative proc- ‘‘(1) a list of contract clauses to be included in be achieved through acquisitions primarily in- ess for such systems contained in section 804 of each contract for the acquisition of a military volving the procurement of services. the National Defense Authorization Act for Fis- purpose nondevelopmental item; cal Year 2010 (Public Law 111–84; 123 Stat. 2401; SEC. 105. JOINT EVALUATION TASK FORCES. ‘‘(2) definitions for the terms ‘developed’ and 10 U.S.C. 2225 note); and (a) TASK FORCES REQUIRED.—For each joint ‘exclusively at private expense’ that— (6) such other matters as the Secretary con- military requirement involving a materiel solu- ‘‘(A) are consistent with the definitions devel- siders appropriate. tion for which the Chairman of the Joint Re- (c) REPORT.—Not later than 270 days after the oped for such terms in accordance with quirements Oversight Council is the validation date of the enactment of this Act, the Secretary 2320(a)(3) of this title; and authority, the Chairman shall designate a com- of Defense shall submit to the Committees on ‘‘(B) also exclude an item developed in part or mander of a unified combatant command to pro- Armed Services of the Senate and of the House in whole with— vide a joint evaluation task force to participate of Representatives a report detailing any ‘‘(i) foreign government funding; or in such materiel solution. Such task force changes in the acquisition guidance of the De- ‘‘(ii) foreign or Federal Government loan fi- shall— partment of Defense identified during the review nancing at nonmarket rates; and (1) come from a military unit or units des- required by subsection (a), and any actions ‘‘(3) standards for evaluating the reasonable- ignated by the combatant commander con- taken, or planned to be taken, to implement ness of price for the military purpose non- cerned; such changes developmental item, in lieu of certified cost or (2) be selected based on the relevance of such pricing data.’’. materiel solution to the mission of the unit; and SEC. 107. REQUIREMENT TO INCLUDE REF- ERENCES TO SERVICES CON- (2) CLERICAL AMENDMENT.—The table of sec- (3) participate consistent with its operational TRACTING THROUGHOUT THE FED- tions at the beginning of such chapter is amend- obligations. ERAL ACQUISITION REGULATION. ed by adding at the end the following new item: (b) RESPONSIBILITIES.—A task force provided (a) FINDINGS.—Congress finds the following: ‘‘2410r. Military purpose nondevelopmental pursuant to subsection (a) shall, for the materiel (1) The acquisition of services can be ex- items.’’. solution concerned— tremely complex, and program management (b) COST OR PRICING DATA EXCEPTION.—Sec- (1) provide input to the analysis of alter- skills, tools, and processes need to be applied to tion 2306a(b)(1) of title 10, United States Code, is natives; services acquisitions. (2) participate in testing (including limited (2) An emphasis on the concept of ‘‘services’’ amended— user tests and prototype testing); throughout the Federal Acquisition Regulation (1) by striking ‘‘or’’ at the end of subpara- (3) provide input on a concept of operations would enhance and support the procurement graph (B); and doctrine; and project management community in all as- (2) by striking the period at the end of sub- (4) provide end user feedback to the resource pects of the acquisition planning process, in- paragraph (C) and inserting ‘‘; or’’; and sponsor; and cluding requirements development, assessment of (3) by adding at the end the following new (5) participate, through the combatant com- reasonableness, and post-award management subparagraph: mander concerned, in any alteration of the re- and oversight. ‘‘(D) for the acquisition of a military purpose quirement for such solution. (b) REQUIREMENT FOR CHANGES TO FAR.—The nondevelopmental item, as defined in section (c) ADMINISTRATIVE SUPPORT.—The resource Federal Acquisition Regulation shall be revised 2410r of this title, if the contracting officer de- sponsor for the joint military requirement shall to provide, throughout the Regulation, appro- termines in writing that— provide administrative support to the joint eval- priate references to services contracting that are ‘‘(i) the contract, subcontract or modification uation task force for purposes of carrying out in addition to references provided in part 37 will be a firm, fixed price type contract; and this section. (which relates specifically to services con- ‘‘(ii) the offeror has submitted sufficient infor- (d) DEFINITIONS.—In this section: tracting). mation to evaluate, through price analysis, the (1) RESOURCE SPONSOR.—The term ‘‘resource (c) DEADLINE.—This section shall be carried reasonableness of the price for the military pur- sponsor’’ means the organization responsible for out within 270 days after the date of the enact- pose nondevelopmental item.’’. all common documentation, periodic reporting, ment of this Act. (c) EFFECTIVE DATE.—Section 2410r of title 10, and funding actions required to support the ca- SEC. 108. PROCUREMENT OF MILITARY PURPOSE United States Code, as added by subsection (a), pabilities development and acquisition process NONDEVELOPMENTAL ITEMS. and the amendment made by subsection (b), for the materiel solution. (a) IN GENERAL.— shall apply with respect to contracts entered (2) MATERIEL SOLUTION.—The term ‘‘materiel (1) PROCUREMENT OF MILITARY PURPOSE NON- into after the date that is 120 days after the date solution’’ means the development, acquisition, DEVELOPMENTAL ITEMS.—Chapter 141 of title 10, of the enactment of this Act.

VerDate Mar 15 2010 03:25 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00025 Fmt 4634 Sfmt 6333 E:\CR\FM\A28AP7.009 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2964 CONGRESSIONAL RECORD — HOUSE April 28, 2010 TITLE II—DEFENSE ACQUISITION a Government-wide rule or regulation under sec- ‘‘(B) An explanation of the flexibilities used in WORKFORCE tion 7117(a)(1) of such title.’’. the project to appoint individuals to the acquisi- SEC. 201. ACQUISITION WORKFORCE EXCEL- (2) CLERICAL AMENDMENT.—The table of sec- tion workforce and whether those appointments LENCE. tions at the beginning of such subchapter is are based on competitive procedures and recog- (a) IN GENERAL.— amended by inserting after the item relating to nize veteran’s preferences. (1) ACQUISITION WORKFORCE EXCELLENCE.— section 1701 the following new item: ‘‘(C) An explanation of the flexibilities used in Subchapter I of chapter 87 of title 10, United ‘‘1701a. Management for acquisition workforce the project to develop a performance appraisal States Code, is amended by inserting after sec- excellence.’’. system that recognizes excellence in performance tion 1701 the following new section: (b) AUTHORITY TO APPOINT HIGHLY QUALIFIED and offers opportunities for improvement. ‘‘§ 1701a. Management for acquisition work- EXPERTS ON PART-TIME BASIS.—Section ‘‘(D) The steps taken to ensure that such sys- force excellence 9903(b)(1) of title 5, United States Code, is tem is fair and transparent for all employees in amended by inserting ‘‘, on a full-time or part- the project. ‘‘(a) PURPOSE.—The purpose of this chapter is ‘‘(E) How the project allows the organization to require the Department of Defense to develop time basis,’’ after ‘‘positions in the Department to better meet mission needs. and manage a highly skilled professional acqui- of Defense’’ the first place it appears. ‘‘(F) An analysis of how the flexibilities in sition workforce— SEC. 202. AMENDMENTS TO THE ACQUISITION ‘‘(1) in which excellence and contribution to WORKFORCE DEMONSTRATION subparagraphs (B) and (C) are used, and what PROJECT. mission is rewarded; barriers have been encountered that inhibit ‘‘(2) which has the technical expertise and (a) CODIFICATION INTO TITLE 10.— their use. (1) IN GENERAL.—Chapter 87 of title 10, United business skills to ensure the Department receives ‘‘(G) Whether there is a process for (i) ensur- States Code, is amended by inserting after sec- the best value for the expenditure of public re- ing ongoing performance feedback and dialogue tion 1761 the following new section: sources; among supervisors, managers, and employees ‘‘(3) which serves as a model for performance ‘‘§ 1762. Demonstration project relating to cer- throughout the performance appraisal period, management of employees of the Department; tain acquisition personnel management and (ii) setting timetables for performance ap- and policies and procedures praisals. ‘‘(4) which is managed in a manner that com- ‘‘(a) COMMENCEMENT.—The Secretary of De- ‘‘(H) The project’s impact on career progres- plements and reinforces the performance man- fense is encouraged to carry out a demonstra- sion. agement of the defense acquisition system pur- tion project, the purpose of which is to deter- ‘‘(I) The project’s appropriateness or inappro- suant to chapter 149 of this title. mine the feasibility or desirability of one or more priateness in light of the complexities of the ‘‘(b) PERFORMANCE MANAGEMENT.—In order proposals for improving the personnel manage- workforce affected. to achieve the purpose set forth in subsection ment policies or procedures that apply with re- ‘‘(J) The project’s sufficiency in terms of pro- (a), the Secretary of Defense shall— spect to the acquisition workforce of the Depart- viding protections for diversity in promotion and ‘‘(1) use the full authorities provided in sub- ment of Defense and supporting personnel as- retention of personnel. sections (a) through (d) of section 9902 of title 5, signed to work directly with the acquisition ‘‘(K) The adequacy of the training, policy including flexibilities related to performance workforce. guidelines, and other preparations afforded in management and hiring and to training of man- ‘‘(b) TERMS AND CONDITIONS.—(1) Except as connection with using the project. agers; otherwise provided in this subsection, any dem- ‘‘(L) Whether there is a process for ensuring ‘‘(2) require managers to develop performance onstration project described in subsection (a) employee involvement in the development and plans for individual members of the acquisition shall be subject to section 4703 of title 5 and all improvement of the project. workforce in order to give members an under- other provisions of such title that apply with re- ‘‘(3) The first such assessment under this sub- standing of how their performance contributes spect to any demonstration project under such section shall be completed not later than Sep- to their organization’s mission and the success section. tember 30, 2011, and subsequent assessments of the defense acquisition system (as defined in ‘‘(2) Subject to paragraph (3), in applying sec- shall be completed every two years thereafter section 2545 of this title); tion 4703 of title 5 with respect to a demonstra- until the termination of the project. The Sec- ‘‘(3) to the extent appropriate, use the lessons tion project described in subsection (a)— retary shall submit to the covered congressional learned from the acquisition demonstration ‘‘(A) ‘180 days’ in subsection (b)(4) of such committees a copy of the assessment within 30 project carried out under section 1762 of this section shall be deemed to read ‘120 days’; days after receipt by the Secretary of the assess- title related to contribution-based compensation ‘‘(B) ‘90 days’ in subsection (b)(6) of such sec- ment. and appraisal, and how those lessons may be tion shall be deemed to read ‘30 days’; and ‘‘(f) COVERED CONGRESSIONAL COMMITTEES.— applied within the General Schedule system; ‘‘(C) subsection (d)(1) of such section shall be In this section, the term ‘covered congressional ‘‘(4) develop attractive career paths; disregarded. committees’ means— ‘‘(5) encourage continuing education and ‘‘(3) Paragraph (2) shall not apply with re- training; spect to a demonstration project unless— ‘‘(1) the Committees on Armed Services of the ‘‘(6) develop appropriate procedures for warn- ‘‘(A) for each organization or team partici- Senate and the House of Representatives; ings during performance evaluations and due pating in the demonstration project— ‘‘(2) the Committee on Homeland Security and process for members of the acquisition workforce ‘‘(i) at least one-third of the workforce partici- Governmental Affairs of the Senate; and who consistently fail to meet performance stand- pating in the demonstration project consists of ‘‘(3) the Committee on Oversight and Govern- ards; members of the acquisition workforce; and ment Reform of the House of Representatives. ‘‘(7) take full advantage of the Defense Civil- ‘‘(ii) at least two-thirds of the workforce par- ‘‘(g) TERMINATION OF AUTHORITY.—The au- ian Leadership Program established under sec- ticipating in the demonstration project consists thority to conduct a demonstration program tion 1112 of the National Defense Authorization of members of the acquisition workforce and under this section shall terminate on September Act for Fiscal Year 2010, (Public Law 111–84; 123 supporting personnel assigned to work directly 30, 2017. Stat. 2496; 10 U.S.C. 1580 note prec.); with the acquisition workforce; and ‘‘(h) CONVERSION.—Within six months after ‘‘(8) use the authorities for highly qualified ‘‘(B) the demonstration project commences be- the authority to conduct a demonstration experts under section 9903 of title 5, to hire ex- fore October 1, 2007. project under this section is terminated as pro- perts who are skilled acquisition professionals ‘‘(c) LIMITATION ON NUMBER OF PARTICI- vided in subsection (g), employees in the project to— PANTS.—The total number of persons who may shall convert to the civilian personnel system ‘‘(A) serve in leadership positions within the participate in the demonstration project under created pursuant to section 9902 of title 5.’’. acquisition workforce to strengthen management this section may not exceed 120,000. (2) CLERICAL AMENDMENT.—The table of sec- and oversight; ‘‘(d) EFFECT OF REORGANIZATIONS.—The ap- tions at the beginning of subchapter V of chap- ‘‘(B) provide mentors to advise individuals plicability of paragraph (2) of subsection (b) to ter 87 of title 10, United States Code, is amended within the acquisition workforce on their career an organization or team shall not terminate by by inserting after the item relating to section paths and opportunities to advance and excel reason that the organization or team, after hav- 1761 the following new item: ing satisfied the conditions in paragraph (3) of within the acquisition workforce; and ‘‘1762. Demonstration project relating to certain ‘‘(C) assist with the design of education and such subsection when it began to participate in acquisition personnel manage- training courses and the training of individuals a demonstration project under this section, ment policies and procedures.’’. in the acquisition workforce; and ceases to meet one or both of the conditions set ‘‘(9) use the authorities for expedited security forth in subparagraph (A) of such paragraph (3) (b) CONFORMING REPEAL.—Section 4308 of the clearance processing pursuant to section 1564 of as a result of a reorganization, restructuring, National Defense Authorization Act for Fiscal this title. realignment, consolidation, or other organiza- Year 1996 (Public Law 104–106; 10 U.S.C. 1701 ‘‘(c) NEGOTIATIONS.—Any action taken by the tional change. note) is repealed. Secretary under this section, or to implement ‘‘(e) ASSESSMENT.—(1) The Secretary of De- SEC. 203. INCENTIVE PROGRAMS FOR CIVILIAN this section, shall be subject to the requirements fense shall designate an independent organiza- AND MILITARY PERSONNEL IN THE of chapter 71 of title 5. tion to review the acquisition workforce dem- ACQUISITION WORKFORCE. ‘‘(d) REGULATIONS.—Any rules or regulations onstration project described in subsection (a). (a) IN GENERAL.—Chapter 87 of title 10, prescribed pursuant to this section shall be ‘‘(2) Such assessment shall include: United States Code, is amended by inserting deemed an agency rule or regulation under sec- ‘‘(A) A description of the workforce included after section 1762, as added by section 202, the tion 7117(a)(2) of title 5, and shall not be deemed in the project. following new section:

VerDate Mar 15 2010 03:25 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00026 Fmt 4634 Sfmt 6333 E:\CR\FM\A28AP7.009 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2965 ‘‘§ 1763. Incentive programs for civilian and section 115b(d) of this title the following infor- ment disciplines through academic programs military personnel in the acquisition work- mation related to the acquisition workforce for and other self-developmental activities; and force the period covered by the report (which shall be ‘‘(2) develop key work experiences, including ‘‘(a) CIVILIAN ACQUISITION WORKFORCE IN- shown for the Department of Defense as a whole the creation of a program sponsored by the De- CENTIVES.—The Secretary of Defense, acting and separately for the Army, Navy, Air Force, partment of Defense that facilitates the periodic through the Under Secretary of Defense for Ac- Marine Corps, Defense Agencies, and Office of interaction between individuals in the acquisi- quisition, Technology, and Logistics, shall pro- the Secretary of Defense): tion workforce and the end user in such end vide for an enhanced system of incentives for ‘‘(1) The total number of persons serving in user’s environment to enhance the knowledge the encouragement of excellence in the acquisi- the Acquisition Corps, set forth separately for base of such workforce, for individuals in the tion workforce by providing rewards for employ- members of the armed forces and civilian em- acquisition workforce so that the individuals ees who contribute to achieving the agency’s ployees, by grade level and by functional spe- may gain in-depth knowledge and experience in performance goals. The system of incentives cialty. the acquisition process and become seasoned, shall include provisions that— ‘‘(2) The total number of critical acquisition well-qualified members of the acquisition work- ‘‘(1) relate salary increases, bonuses, and positions held, set forth separately for members force.’’. awards to performance and contribution to the of the armed forces and civilian employees, by SEC. 205. RECERTIFICATION AND TRAINING RE- agency mission (including the extent to which grade level and by other appropriate categories QUIREMENTS. (a) CONTINUING EDUCATION.—Section 1723 of the performance of personnel in such workforce (including by program manager, deputy pro- title 10, United States Code, as amended by sec- contributes to achieving the goals and standards gram manager, and division head positions). For tion 204, is further amended by amending sub- established for acquisition programs pursuant to each such category, the report shall specify the section (a) to read as follows: section 2545 of this title; number of civilians holding such positions com- pared to the total number of positions filled. ‘‘(a) QUALIFICATION REQUIREMENTS.—(1) The ‘‘(2) provide for consideration, in personnel Secretary of Defense shall establish education, evaluations and promotion decisions, of the ex- ‘‘(3) The number of employees to whom the re- quirements of subsections (b)(2)(A) and (b)(2)(B) training and experience requirements for each tent to which the performance of personnel in acquisition position, based on the level of com- of section 1732 of this title did not apply because such workforce contributes to achieving such plexity of duties carried out in the position. In of the exceptions provided in paragraphs (1) and goals and standards; establishing such requirements, the Secretary (2) of section 1732(c) of this title, set forth sepa- ‘‘(3) use the Department of Defense Civilian shall ensure the availability and sufficiency of rately by type of exception. Workforce Incentive Fund established pursuant training in all areas of acquisition, including ‘‘(4) The number of program managers and to section 9902(a) of title 5; and additional training courses with an emphasis on deputy program managers who were reassigned ‘‘(4) provide opportunities for career broad- services contracting, long-term sustainment after completion of a major milestone occurring ening experiences for high performers. strategies, information technology, and rapid closest in time to the date on which the person ‘‘(b) MILITARY ACQUISITION WORKFORCE IN- acquisition. CENTIVES.—The Secretaries of the military de- has served in the position for four years (as re- ‘‘(2) In establishing such requirements for po- partments shall fully use and enhance incentive quired under section 1734(b) of this title), and sitions other than critical acquisition positions programs that reward individuals, through rec- the proportion of those reassignments to the designated pursuant to section 1733 of this title, ognition certificates or cash awards, for sugges- total number of reassignments of program man- the Secretary may state the requirements by cat- tions of process improvements that contribute to agers and deputy program managers, set forth egories of positions. improvements in efficiency and economy and a separately for program managers and deputy ‘‘(3) The Secretary of Defense, acting through better way of doing business.’’. program managers. The Secretary also shall in- the Under Secretary of Defense for Acquisition, (b) CLERICAL AMENDMENT.—The table of sec- clude the average length of assignment served Technology, and Logistics, shall establish re- tions at the beginning of subchapter V of chap- by program managers and deputy program man- quirements for continuing education and peri- ter 87 of title 10, United States Code, is amended agers so reassigned. odic renewal of an individual’s certification. by inserting after the item relating to section ‘‘(5) The number of persons, excluding those Any requirement for a certification renewal 1762, as added by section 202, the following new reported under paragraph (4), in critical acqui- shall not require a renewal more often than item: sition positions who were reassigned after a pe- once every five years.’’. ‘‘1763. Incentive programs for civilian and mili- riod of three years or longer (as required under (b) STANDARDS FOR TRAINING.— tary personnel in the acquisition section 1734(a) of this title), and the proportion (1) IN GENERAL.—Subchapter IV of Chapter 87 workforce.’’. of those reassignments to the total number of re- of title 10, United States Code, is amended by assignments of persons, excluding those reported adding at the end the following new section: SEC. 204. CAREER DEVELOPMENT FOR CIVILIAN AND MILITARY PERSONNEL IN THE under paragraph (4), in critical acquisition posi- ‘‘§ 1748. Guidance and standards for acquisi- ACQUISITION WORKFORCE. tions. tion workforce training ‘‘(6) The number of times a waiver authority (a) CAREER PATHS.— ‘‘(a) FULFILLMENT STANDARDS.—The Sec- was exercised under section 1724(d), 1732(d), (1) AMENDMENT.—Chapter 87 of title 10, retary of Defense, acting through the Under 1734(d), or 1736(c) of this title or any other pro- United States Code, is amended by inserting Secretary of Defense for Acquisition, Tech- vision of this chapter (or other provision of law) after section 1722a the following new section: nology, and Logistics, shall develop fulfillment which permits the waiver of any requirement re- ‘‘§ 1722b. Special requirements for civilian em- standards, and implement and maintain a pro- lating to the acquisition workforce, and in the ployees in the acquisition field gram, for purposes of the training requirements case of each such authority, the reasons for ex- of sections 1723, 1724, and 1735 of this title. Such ‘‘(a) REQUIREMENT FOR POLICY AND GUIDANCE ercising the authority. The Secretary may REGARDING CIVILIAN PERSONNEL IN ACQUISI- fulfillment standards shall consist of criteria for present the information provided under this determining whether an individual has dem- TION.—The Secretary of Defense, acting through paragraph by category or grouping of types of the Under Secretary of Defense for Acquisition, onstrated competence in the areas that would be waivers and reasons.’’. taught in the training courses required under Technology, and Logistics, shall establish poli- (2) CLERICAL AMENDMENT.—The table of sec- cies and issue guidance to ensure the proper de- those sections. If an individual meets the appro- tions at the beginning of subchapter II of chap- priate fulfillment standard, the applicable train- velopment, assignment, and employment of civil- ter 87 of title 10, United States Code, is amended ian members of the acquisition workforce to ing requirement is fulfilled. by inserting after the item relating to section ‘‘(b) GUIDANCE AND STANDARDS RELATING TO achieve the objectives specified in subsection (b). 1722a the following new item: ‘‘(b) OBJECTIVES.—Policies established and CONTRACTS FOR TRAINING.—The Secretary of guidance issued pursuant to subsection (a) shall ‘‘1722b. Special requirements for civilian employ- Defense shall develop appropriate guidance and ensure, at a minimum, the following: ees in the acquisition field.’’. standards to ensure that the Department of De- ‘‘(1) A career path in the acquisition field that (b) CAREER EDUCATION AND TRAINING.—Chap- fense will continue, where appropriate and cost- attracts the highest quality civilian personnel, ter 87 of title 10, United States Code, is amended effective, to enter into contracts for the training from either within or outside the Federal Gov- in section 1723 by redesignating subsection (b) requirements of sections 1723, 1724, and 1735 of ernment. as subsection (c) and inserting after subsection this title, while maintaining appropriate control ‘‘(2) A deliberate workforce development strat- (a) the following new subsection: over the content and quality of such training.’’. egy that increases attainment of key experiences ‘‘(b) CAREER PATH REQUIREMENTS.—For each (2) CLERICAL AMENDMENT.—The table of sec- that contribute to a highly qualified acquisition career path, the Secretary of Defense, acting tions at the beginning of such subchapter is workforce. through the Under Secretary of Defense for Ac- amended by adding at the end the following ‘‘(3) Sufficient opportunities for promotion quisition, Technology, and Logistics shall estab- new item: and advancement in the acquisition field. lish requirements for the completion of course ‘‘1748. Guidance and standards for acquisition ‘‘(4) A sufficient number of qualified, trained work and related on-the-job training and dem- workforce training.’’. members eligible for and active in the acquisi- onstration of qualifications in the critical acqui- (3) DEADLINE FOR FULFILLMENT STANDARDS.— tion field to ensure adequate capacity, capa- sition-related duties and tasks of the career The fulfillment standards required under section bility, and effective succession for acquisition path. The Secretary of Defense, acting through 1748(a) of title 10, United States Code, as added functions, including contingency contracting, of the Under Secretary, shall also— by paragraph (1), shall be developed not later the Department of Defense. ‘‘(1) encourage individuals in the acquisition than 90 days after the date of the enactment of ‘‘(c) INCLUSION OF INFORMATION IN ANNUAL workforce to maintain the currency of their ac- this Act. REPORT.—The Secretary of Defense shall in- quisition knowledge and generally enhance (4) CONFORMING REPEAL.—Section 853 of Pub- clude in the report to Congress required under their knowledge of related acquisition manage- lic Law 105–85 (111 Stat. 1851) is repealed.

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Information technology acquisition The heading of section 1746 of such title is nent of the Department of Defense to achieve a positions amended to read as follows: financial statement validated as ready for audit ‘‘(a) PLAN REQUIRED.—The Secretary of De- ‘‘§ 1746. Defense Acquisition University’’. by September 30, 2017. fense shall develop and carry out a plan to (b) MEASURES REQUIRED.—Not later than 180 (B) The item relating to section 1746 in the strengthen the part of the acquisition workforce days after the date of the enactment of this Act, table of sections at the beginning of subchapter that specializes in information technology. The the Secretary shall develop and issue guidance IV of chapter 87 of such title is amended to read plan shall include the following: detailing measures to be taken in accordance as follows: ‘‘(1) Defined targets for billets devoted to in- with subsection (a). Such measures shall in- formation technology acquisition. ‘‘1746. Defense Acquisition University.’’. clude— ‘‘(2) Specific certification requirements for in- SEC. 209. COST ESTIMATING INTERNSHIP AND (1) the development of a remediation plan to dividuals in the acquisition workforce who spe- SCHOLARSHIP PROGRAMS. ensure the component can achieve a financial cialize in information technology acquisition. (a) PURPOSE.—The purpose of this section is statement validated as ready for audit within ‘‘(3) Defined career paths for individuals in to require the Department of Defense to develop one year; the acquisition workforce who specialize in in- internship and scholarship programs in cost es- (2) additional reporting requirements that may formation technology acquisitions. timating to underscore the importance of cost es- be necessary to mitigate financial risk to the ‘‘(b) DEFINITIONS.—In this section: timating, as a core acquisition function, to the component; ‘‘(1) The term ‘information technology’ has acquisition process. (3) delaying the release of appropriated funds the meaning provided such term in section 11101 (b) REQUIREMENT.—The Secretary of Defense to such component, consistent with the need to of title 40 and includes information technology shall develop intern and scholarship programs fund urgent warfighter requirements and oper- incorporated into a major weapon system. in cost estimating for purposes of improving ational needs, until such time as the Secretary ‘‘(2) The term ‘major weapon system’ has the education and training in cost estimating and is assured that the component will achieve a fi- meaning provided such term in section 2379(f) of providing an opportunity to meet any certifi- nancial statement validated as ready for audit this title.’’. cation requirements in cost estimating. within one year; (2) CLERICAL AMENDMENT.—The table of sec- (c) IMPLEMENTATION.—Such programs shall be (4) specific consequences for key personnel in tions at the beginning of such subchapter is established not later than 270 days after the order to ensure accountability within the lead- amended by adding at the end the following date of the enactment of this Act and shall be ership of the component; and new item: implemented for a four-year period following es- (5) such other measures as the Secretary con- ‘‘1725. Information technology acquisition posi- tablishment of the programs. siders appropriate. tions.’’. TITLE III—FINANCIAL MANAGEMENT (c) DEFINITION.—The term ‘‘component’’ of (b) DEADLINE.—The Secretary of Defense shall the Department of Defense means any organiza- develop the plan required under section 1725 of SEC. 301. INCENTIVES FOR ACHIEVING tion within the Department of Defense that is AUDITABILITY. title 10, United States Code, as added by sub- required to submit an auditable financial state- (a) PREFERENTIAL TREATMENT AUTHORIZED.— section (a), not later than 180 days after the ment to the Secretary of Defense. The Under Secretary of Defense (Comptroller) date of the enactment of this Act. SEC. 303. REVIEW OF OBLIGATION AND EXPENDI- shall ensure that any component of the Depart- TURE THRESHOLDS. SEC. 207. DEFINITION OF ACQUISITION WORK- ment of Defense that the Under Secretary deter- FORCE. (a) SENSE OF CONGRESS.—It is the sense of Section 101(a) of title 10, United States Code, mines has financial statements validated as Congress that— is amended by inserting after paragraph (17) the ready for audit earlier than September 30, 2017, (1) Department of Defense program managers following new paragraph: shall receive preferential treatment, as the should be encouraged to place a higher priority ‘‘(18) The term ‘acquisition workforce’ means Under Secretary determines appropriate— on seeking the best value for the Government the persons serving in acquisition positions (1) in financial matter matters, including— than on meeting arbitrary benchmarks for within the Department of Defense, as des- (A) consistent with the need to fund urgent spending; and ignated pursuant to section 1721(a) of this warfighter requirements and operational needs, (2) actions to carry out paragraph (1) should title.’’. priority in the release of appropriated funds to be supported by the Department’s leadership at such component; SEC. 208. DEFENSE ACQUISITION UNIVERSITY every level. CURRICULUM REVIEW. (B) relief from the frequency of financial re- (b) POLICY REVIEW.—Not later than 180 days (a) CURRICULUM REVIEW.—Not later than one porting of such component in cases in which after the date of the enactment of this Act, the year after the date of the enactment of this Act, such reporting is not required by law; Chief Management Officer of the Department of the Under Secretary of Defense for Acquisition, (C) relief from departmental obligation and Defense, in coordination with the Chief Man- Technology, and Logistics shall lead a review of expenditure thresholds to the extent that such agement Officer of each military department, the curriculum offered by the Defense Acquisi- thresholds establish requirements more restric- shall review and update as necessary all rel- tion University to ensure it adequately supports tive than those required by law; or evant policy and instruction regarding obliga- the training and education requirements of ac- (D) such other measures as the Under Sec- tion and expenditure benchmarks to ensure that quisition professionals, particularly in service retary considers appropriate; and such guidance does not inadvertantly prevent contracting, long term sustainment strategies, (2) in the availability of personnel manage- achieving the best value for the Government in information technology, and rapid acquisition. ment incentives, including— the obligation and expenditure of funds. The review shall also involve the service acquisi- (A) the size of the bonus pool available to the (c) PROCESS REVIEW.—Not later than one year tion executives of each military department. financial and business management workforce after the date of the enactment of this Act, the (b) ANALYSIS OF FUNDING REQUIREMENTS FOR of the component; Chief Management Officer, in coordination with TRAINING.—Following the review conducted (B) the rates of promotion within the finan- the Chief Management Officer of each military under subsection (a), the Secretary of Defense cial and business management workforce of the department, the Director of the Office of Per- shall analyze the most recent future-years de- component; formance Assessment and Root Cause Analysis, fense program to determine the amounts of esti- (C) awards for excellence in financial and the Under Secretary of Defense (Comptroller), mated expenditures and proposed appropria- business management; or and the Comptrollers of the military depart- tions necessary to support the training require- (D) the scope of work assigned to the finan- ments, shall conduct a comprehensive review of ments of the amendments made by section 205 of cial and business management workforce of the the use and value of obligation and expenditure this Act, including any new training require- component. benchmarks and propose new benchmarks or ments determined after the review conducted (b) INCLUSION OF INFORMATION IN REPORT.— processes for tracking financial performance, in- under subsection (a). The Secretary shall iden- The Under Secretary shall include information cluding, as appropriate— tify any additional funding needed for such on any measure initiated pursuant to this sec- (1) increased reliance on individual obligation training requirements in the separate chapter on tion in the next semiannual report pursuant to and expenditure plans for measuring program the defense acquisition workforce required in section 1003(b) of the National Defense Author- financial performance; the next annual strategic workforce plan under ization Act for Fiscal Year 2010 (Public Law (2) mechanisms to improve funding stability 115b of title 10, United States Code. 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note) after and to increase the predictability of the release (c) REQUIREMENT FOR ONGOING CURRICULUM such measure is initiated. of funding for obligation and expenditure; and DEVELOPMENT WITH CERTAIN SCHOOLS.— (c) EXPIRATION.—This section shall expire on (3) streamlined mechanisms for a program (1) REQUIREMENT.—Section 1746 of title 10, September 30, 2017. manager to submit an appeal for funding United States Code, is amended by adding at the (d) DEFINITION.—In this section, the term changes and to have such appeal evaluated end the following new subsection: ‘‘component of the Department of Defense’’ promptly. ‘‘(c) CURRICULUM DEVELOPMENT.—The Presi- means any organization within the Department (d) TRAINING.—The Under Secretary of De- dent of the Defense Acquisition University shall of Defense that is required to submit an fense for Acquisition, Technology, and Logistics

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and the Under Secretary of Defense (Comp- description of the actions taken to identify and ‘‘(e) REGULATIONS.—The Administrator for troller) shall ensure that as part of the training address any unjustified price escalation for the Federal Procurement Policy, in consultation required for program managers and business categories of items. with the Secretary of the Treasury, shall pro- managers, an emphasis is placed on obligating ‘‘(6) This subsection shall not be in effect on mulgate regulations that— and expending appropriated funds in a manner and after April 1, 2013.’’. ‘‘(1) treat corporations and partnerships as that achieves the best value for the Government SEC. 403. CONTRACTOR AND GRANTEE DISCLO- having a seriously delinquent tax debt if such and that the purpose and limitations of obliga- SURE OF DELINQUENT FEDERAL TAX corporation or partnership is controlled (directly tion and expenditure benchmarks are made DEBTS. or indirectly) by persons who have a seriously clear. (a) REQUIREMENT.— delinquent tax debt; ‘‘(2) provide for the proper application of sub- TITLE IV—INDUSTRIAL BASE (1) IN GENERAL.—Chapter 37 of title 31, United States Code, is amended by adding at the end of sections (a)(2) and (b)(2) in the case of corpora- SEC. 401. EXPANSION OF THE INDUSTRIAL BASE. subchapter II the following new section: tions and partnerships; and (a) PROGRAM TO EXPAND INDUSTRIAL BASE ‘‘(3) provide for the proper application of sub- ‘‘§ 3720F. Contractor and grantee disclosure of REQUIRED.—The Secretary of Defense shall es- section (a) to first-tier subcontractors that are delinquent Federal tax debts tablish a program to expand the industrial base identified in a bid or proposal and are a signifi- of the Department of Defense to increase the ‘‘(a) REQUIREMENT RELATING TO CON- cant part of a bid or proposal team.’’. Department’s access to innovation and the bene- TRACTS.—The head of any executive agency that (2) CLERICAL AMENDMENT.—The table of sec- fits of competition. issues an invitation for bids or a request for pro- tions at the beginning of chapter 37 of such title (b) IDENTIFYING AND COMMUNICATING WITH posals for a contract in an amount greater than is amended by adding after the item relating to NONTRADITIONAL SUPPLIERS.—The program es- the simplified acquisition threshold shall require section 3720E the following new item: tablished under subsection (a) shall use tools each person that submits a bid or proposal to ‘‘3720F. Contractor and grantee disclosure of de- and resources available within the Federal Gov- submit with the bid or proposal a form— linquent Federal tax debts.’’. ernment and available from the private sector, ‘‘(1) certifying that the person does not have (b) REVISION OF FEDERAL ACQUISITION REGU- to provide a capability for identifying and com- a seriously delinquent tax debt; and LATION.—Not later than 90 days after the final municating with nontraditional suppliers, in- ‘‘(2) authorizing the Secretary of the Treasury promulgation of regulations under section cluding commercial firms and firms of all busi- to disclose to the head of the agency informa- 3720F(e) of title 31, United States Code, as added ness sizes, that are engaged in markets of impor- tion strictly limited to verifying whether the per- by subsection (a), the Federal Acquisition Regu- tance to the Department of Defense. son has a seriously delinquent tax debt. lation shall be revised to incorporate the re- (c) INDUSTRIAL BASE REVIEW.—The program ‘‘(b) REQUIREMENT RELATING TO GRANTS.— quirements of section 3720F of such title. required by subsection (a) shall include a con- The head of any executive agency that offers a tinuous effort to review the industrial base sup- SEC. 404. INDEPENDENCE OF CONTRACT AUDITS grant in excess of an amount equal to the sim- AND BUSINESS SYSTEM REVIEWS. porting the Department of Defense, including plified acquisition threshold may not award (a) DEFENSE CONTRACT AUDIT AGENCY GEN- the identification of markets of importance to such grant to any person unless such person ERAL COUNSEL.— the Department of Defense. submits with the application for such grant a (1) IN GENERAL.—Subchapter II of chapter 8 of EFINITION.—In this section: (d) D form— title 10, United States Code, is amended by add- (1) NONTRADITIONAL SUPPLIERS.—The term ‘‘(1) certifying that the person does not have ing at the end the following new section: ‘‘nontraditional suppliers’’ means firms that a seriously delinquent tax debt; and ‘‘§ 204. Defense Contract Audit Agency general have received contracts from the Department of ‘‘(2) authorizing the Secretary of the Treasury counsel Defense with a total value of not more than to disclose to the head of the executive agency $100,000 in the previous 5 years. information strictly limited to verifying whether ‘‘(a) GENERAL COUNSEL.—The Director of the (2) MARKETS OF IMPORTANCE TO THE DEPART- the person has a seriously delinquent tax debt. Defense Contract Audit Agency shall appoint a MENT OF DEFENSE.—The term ‘‘markets of impor- ‘‘(c) FORM FOR RELEASE OF INFORMATION.— General Counsel of the Defense Contract Audit tance to the Department of Defense’’ means in- The Secretary of the Treasury shall make avail- Agency. dustrial sectors in which the Department of De- able to all executive agencies a standard form ‘‘(b) DUTIES.—(1) The General Counsel shall fense spends more than $500,000,000 annually. for the certification and authorization described perform such functions as the Director may pre- SEC. 402. COMMERCIAL PRICING ANALYSIS. in subsections (a) and (b). scribe and shall serve at the discretion of the Di- Section 803(c) of the Strom Thurmond Na- ‘‘(d) DEFINITIONS.—In this section: rector. tional Defense Authorization Act for Fiscal ‘‘(1) CONTRACT.—The term ‘contract’ means a ‘‘(2) Notwithstanding section 140(b) of this Year 1999 (Public Law 105–261; 10 U.S.C. 2306a binding agreement entered into by an executive title, the General Counsel shall be the chief legal note) is amended to read as follows: agency for the purpose of obtaining property or officer of the Defense Contract Audit Agency. ‘‘(c) COMMERCIAL PRICE TREND ANALYSIS.— services, but does not include— ‘‘(3) The Defense Contract Audit Agency shall ‘‘(1) The Secretary of Defense shall develop ‘‘(A) a contract for property or services that is be the exclusive legal client of the General and implement procedures that, to the maximum intended to be entered into through the use of Counsel. extent practicable, provide for the collection and procedures other than competitive procedures by ‘‘(c) OFFICE OF THE GENERAL COUNSEL.— analysis of information on price trends for cat- reason of section 2304(c)(2) of this title; or There is established an Office of the General egories of exempt commercial items described in ‘‘(B) a contract designated by the head of the Counsel within the Defense Contract Audit paragraph (2). agency as necessary to the national security of Agency. The Director may appoint to the Office ‘‘(2) A category of exempt commercial items re- the United States. to serve as staff of the General Counsel such legal counsel as the Director determines is ap- ferred to in paragraph (1) consists of exempt ‘‘(2) EXECUTIVE AGENCY.—The term ‘executive commercial items that are in a single Federal agency’ has the meaning given that term in sec- propriate.’’. (2) CLERICAL AMENDMENT.—The table of sec- Supply Group or Federal Supply Class, are pro- tion 4(1) of the Office of Federal Procurement tions at the beginning of subchapter II of chap- vided by a single contractor, or are otherwise Policy Act (41 U.S.C. 403(1)). ter 8 of such title is amended by adding at the logically grouped for the purpose of analyzing ‘‘(3) PERSON.—The term ‘person’ includes— end the following new item: information on price trends. ‘‘(A) an individual; ‘‘(3) The analysis of information on price ‘‘(B) a partnership; and ‘‘204. Defense Contract Audit Agency general trends under paragraph (1) shall include, in any ‘‘(C) a corporation. counsel.’’. category in which significant escalation in ‘‘(4) SERIOUSLY DELINQUENT TAX DEBT.—The (b) CRITERIA FOR BUSINESS SYSTEM RE- prices is identified, a more detailed examination term ‘seriously delinquent tax debt’— VIEWS.— of the causes of escalation for such prices with- ‘‘(A) means any Federal tax liability— (1) IN GENERAL.—Chapter 131 of title 10, in the category and whether such price esca- ‘‘(i) that exceeds $3,000; United States Code, is amended by inserting lation is consistent across the Department of De- ‘‘(ii) that has been assessed by the Secretary after section 2222 the following new section: fense. of the Treasury and not paid; and ‘‘§ 2222a. Criteria for business system reviews ‘‘(4) The head of a Department of Defense ‘‘(iii) for which a notice of lien has been filed ‘‘(a) CRITERIA FOR BUSINESS SYSTEM RE- agency or the Secretary of a military depart- in public records; and VIEWS.—The Secretary of Defense shall ensure ment shall take appropriate action to address ‘‘(B) does not include any Federal tax liabil- that any contractor business system review car- any unjustified escalation in prices being paid ity— ried out by a military department, a Defense for items procured by that agency or military ‘‘(i) being paid in a timely manner under an Agency, or a Department of Defense Field Activ- department as identified in an analysis con- offer-in-compromise or installment agreement; ity— ducted pursuant to paragraph (1). ‘‘(ii) with respect to which collection due proc- ‘‘(1) complies with generally accepted govern- ‘‘(5) Not later than April 1 of each of year, the ess proceedings are not completed; or ment auditing standards issued by the Comp- Secretary of Defense shall submit to the Com- ‘‘(iii) with respect to which collection due troller General; mittee on Armed Services of the Senate and the process proceedings are completed and no fur- ‘‘(2) is performed by an audit team that does Committee on Armed Services of the House of ther payment is required. not engage in any other official activity (audit- Representatives a report on the analyses of price ‘‘(5) SIMPLIFIED ACQUISITION THRESHOLD.— related or otherwise) involving the contractor trends that were conducted for categories of ex- The term ‘simplified acquisition threshold’ has concerned; empt commercial items during the preceding fis- the meaning given that term in section 4(11) of ‘‘(3) is performed in a time and manner con- cal year under the procedures prescribed pursu- the Office of Federal Procurement Policy Act (41 sistent with a documented assessment of the risk ant to paragraph (1). The report shall include a U.S.C. 403(11)). to the Federal Government; and

VerDate Mar 15 2010 03:25 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00029 Fmt 4634 Sfmt 6333 E:\CR\FM\A28AP7.010 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2968 CONGRESSIONAL RECORD — HOUSE April 28, 2010 ‘‘(4) involves testing on a representative sam- (1) in paragraph (1), by striking ‘‘or mainte- Page 5, line 1, strike ‘‘assessment’’ and in- ple of transactions sufficient to fully examine nance’’ and inserting ‘‘integration, services, or sert ‘‘assessments’’. the integrity of the contractor business system information technology’’; Page 8, line 12, strike ‘‘analysis’’ and insert concerned. (2) in paragraph (4), by striking ‘‘or produc- ‘‘Analysis’’. ‘‘(b) CONTRACTOR BUSINESS SYSTEM REVIEW tion’’ and inserting ‘‘production, integration, Page 11, line 1, strike ‘‘assessment’’ and in- DEFINED.—In this section, the term ‘contractor services, or information technology’’; sert ‘‘assessments’’. business system review’ means an audit of poli- (3) in paragraph (9)(A), by striking ‘‘and Page 16, line 9, strike ‘‘System’’ and insert cies, procedures, and internal controls relating manufacturing’’ and inserting ‘‘manufacturing, ‘‘Systems’’. to accounting and management systems of a integration, services, and information tech- Page 26, line 10, insert ‘‘primarily’’ after contractor.’’. nology’’; and ‘‘guidance’’. (4) by adding at the end the following new (2) CLERICAL AMENDMENT.—The table of sec- Page 27, line 22, strike ‘‘CONTRACTING’’ paragraph: tions at the beginning of chapter 131 of such and insert ‘‘ACQUISITION’’. ‘‘(15) The term ‘integration’ means the process title is amended by inserting after the item relat- Page 28, line 14, strike ‘‘contracting’’ and of providing systems engineering and technical ing to section 2222 the following new item: insert ‘‘acquisition’’. direction for a system for the purpose of achiev- Page 28, lines 15 and 16, strike ‘‘con- ‘‘2222a. Criteria for business system reviews.’’. ing capabilities that satisfy contract require- tracting’’ and insert ‘‘acquisition’’. (c) CONTRACT AUDIT GUIDANCE.—Not later ments.’’. Page 29, beginning on line 8, strike ‘‘and than 180 days after the date of the enactment of (b) REVISED OBJECTIVES.—Section 2501(a) of for which’’ and all that follows through this Act, the Secretary of Defense shall issue such title is amended— ‘‘title’’ on line 10. guidance relating to contract audits carried out (1) in paragraph (1), by striking ‘‘Supplying Page 30, insert after line 5 the following: by a military department, a defense agency, or and equipping’’ and inserting ‘‘Supplying, ‘‘(4) Nothing in the contract shall further a Department of Defense field activity that are equipping, and supporting’’; restrict or otherwise affect the rights in not contractor business system reviews, as de- (2) in paragraph (2), by striking ‘‘and logistics technical data of the Government, the con- scribed under section 2222a of title 10, United for’’ and inserting ‘‘logistics, and other activi- tractor, or any subcontractor of the con- States Code, that— ties in support of’’; tractor for items developed by the con- (1) requires that such audits comply with gen- (3) in paragraph (4), by striking ‘‘and tractor or any such subcontractor exclu- erally accepted government auditing standards produce’’ and inserting ‘‘, produce, and sup- sively at private expense, as prescribed in issued by the Comptroller General and are per- port’’; and (4) by redesignating paragraph (6) as para- regulations implementing section formed in a time and manner consistent with a graph (8) and inserting after paragraph (5) the 2320(a)(2)(B) of this title. documented assessment of risk to the Federal following new paragraphs: Page 69, line 17, strike ‘‘of the risk’’ and in- Government; ‘‘(6) Providing for the generation of services (2) establishes guidelines for discussions of the sert ‘‘of risk’’. capabilities that are not core functions of the scope of the audit with the contractor concerned Page 73, line 12, strike ‘‘contract’’ and in- armed forces and that are critical to military op- that ensure that such scope is not improperly sert ‘‘program’’. erations within the national technology and in- influenced by the contractor; The Acting CHAIR. Pursuant to dustrial base. (3) provides for withholding of contract pay- ‘‘(7) Providing for the development, produc- House Resolution 1300, the gentleman ments when necessary to compel the submission tion, and integration of information technology from Missouri (Mr. SKELTON) and a of documentation from the contractor; and within the national technology and industrial Member opposed each will control 5 (4) requires that the results of contract audits base.’’. minutes. performed on behalf of an agency of the Depart- (c) REVISED ASSESSMENTS.—Section 2505(b)(4) ment of Defense be shared with other Federal The Chair recognizes the gentleman of such title is amended by inserting after ‘‘of from Missouri. agencies upon request, without reimbursement. this title)’’ the following ‘‘or major automated (d) EFFECTIVE DATES.— information systems (as defined in section 2445a Mr. SKELTON. Mr. Chairman, the (1) SECTION 204.—Section 204 of title 10, United of this title)’’. amendment before us is one that is States Code, as added by subsection (a), shall (d) REVISED POLICY GUIDANCE.—Section technical in nature. It merely seeks to take effect on the date of the enactment of this 2506(a) of such title is amended by striking clarify certain technical errors and in- Act. ‘‘budget allocation, weapons’’ and inserting consistencies that arose during the (2) SECTION 2222A.—Section 2222a of title 10, ‘‘strategy, management, budget allocation,’’. process of drafting the bill. It conforms United States Code, as added by subsection (b), The Acting CHAIR. No amendment shall take effect 180 days after the date of the the bill to the intent of the Armed enactment of this Act. to the committee amendment is in Services Committee in its markup. It order except those printed in House Re- SEC. 405. BLUE RIBBON PANEL ON ELIMINATING makes no substantive changes, is non- BARRIERS TO CONTRACTING WITH port 411–467. Each amendment may be controversial, and I would certainly THE DEPARTMENT OF DEFENSE. offered only in the order printed in the hope that we could adopt the amend- (a) REQUIREMENT TO ESTABLISH.—The Sec- report, by a Member designated in the ment. retary of Defense shall establish a panel con- report, shall be considered read, shall Mr. ANDREWS. Mr. Chairman, I rise sisting of owners of large and small businesses be debatable for the time specified in to claim the time in opposition to the that are not traditional defense suppliers, for the report equally divided and con- purposes of creating a set of recommendations amendment, although I will not oppose trolled by the proponent and an oppo- the amendment. on eliminating barriers to contracting with the nent, shall not be subject to amend- Department of Defense and its defense supply The Acting CHAIR. Without objec- centers. ment, and shall not be subject to a de- tion, the gentleman from New Jersey is (b) MEMBERS.—The panel shall consist of nine mand for division of the question. recognized for 5 minutes. members, of whom— AMENDMENT NO. 1 OFFERED BY MR. SKELTON There was no objection. (1) three shall be appointed by the Secretary The Acting CHAIR. It is now in order Mr. ANDREWS. We find it com- of the Army; to consider amendment No. 1 printed in pletely acceptable to yield to the mi- (2) three shall be appointed by the Secretary House Report 111–467. nority if they have any comments. of the Navy; and Mr. SKELTON. Mr. Chairman, I have Otherwise, we support the amendment. (3) three shall be appointed by the Secretary an amendment at the desk. of the Air Force. The Acting CHAIR. The Clerk will I yield back the balance of my time. (c) APPOINTMENT DEADLINE.—Members shall designate the amendment. Mr. SKELTON. At this time, Mr. be appointed to the panel not later than 180 The text of the amendment is as fol- Chairman, I yield 2 minutes to the gen- days after the date of the enactment of this Act. lows: tleman from New York (Mr. ARCURI). (d) DUTIES.—The panel shall be responsible Amendment No. 1 offered by Mr. SKELTON: Mr. ARCURI. Mr. Chairman, thank for developing a set of recommendations on you for yielding me this time, and I eliminating barriers to contracting with the De- Page 3, in the table of contents, strike the partment of Defense and its defense supply cen- item relating to section 107 and insert the ask that we enter a colloquy to discuss ters. following: the Arcuri-Shuler-Davis amendment (e) REPORT.—Not later than one year after the Sec. 107. Requirement to include references and the health of the titanium indus- date of the enactment of this Act, the panel to services acquisition through- trial base. shall submit to Congress a report containing its out the Federal Acquisition As this bill recognizes, providing recommendations. Regulation. high technology equipment to the De- SEC. 406. INCLUSION OF THE PROVIDERS OF Page 4, after line 12, strike the items relat- partment of Defense is a major source ing to sections 2545 and 2546 and insert the SERVICES AND INFORMATION TECH- of high-paying, high-skilled jobs NOLOGY IN THE NATIONAL TECH- following: NOLOGY AND INDUSTRIAL BASE. ‘‘2545. Performance assessments of the de- throughout this country. Although it is (a) REVISED DEFINITIONS.—Section 2500 of fense acquisition system. easy to think of the industrial base in title 10, United States Code, is amended— ‘‘2546. Audits of performance assessments. terms of big aerospace companies, the

VerDate Mar 15 2010 03:25 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00030 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.010 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2969 real guts of these systems are mostly vantage of American taxpayers, which women commit their very lives to the service built by small parts assembly suppliers not only costs us money but restricts of the Nation. They deserve the best equip- located throughout this country. I rep- our ability to get our soldiers the ment, the best materials, and the best pos- resent a number of those firms in my equipment they need in a timely man- sible support. Bringing together all the materiel district. ner. This bill ends waste, fraud, and that makes the world’s greatest military pos- Congress has long recognized that abuse and makes sure that we get five sible has been a continuous challenge. In ad- certain industrial capacities important cents of value for every nickel spent. dition to the process and business reforms in to the Department of Defense are crit- As a former small business owner in the bill, H.R. 5013 brings the commanders into ical to maintain in this country; North Carolina, I know what it takes the loop, so they can be confident that they among these are the ability to produce to balance the books and get value for will get the right tools to their soldiers in the titanium parts made from titanium. the dollar invested. field. The progress we have made in this bill Section 2533(b) of Title 10 of the United b 1245 will empower the Armed Forces to better meet States Code requires the products pro- the many challenges faced by our military. cured by the Department of Defense This bill and amendment modernizes Simply put, this reform saves lives and which contain titanium must use tita- the Defense Department’s acquisitions saves money. Mr. Chair, I support this legisla- nium metal and titanium parts pro- by practices that are proven in busi- tion, and I urge my colleagues to join me in duced in the United States. The law ness. More broadly, this bill makes passing H.R. 5013. contains a number of exceptions, how- sure that our men and women in Mr. SKELTON. Mr. Chairman, I yield ever, that allow for metal and parts harm’s way can get the tools they need back the balance of my time. produced overseas to enter the supply to protect our Nation quickly and effi- The Acting CHAIR. The question is chain. I am concerned that the use of ciently. Simply put, this reform saves on the amendment offered by the gen- these exceptions has expanded far be- lives and saves money, Mr. Chairman. I tleman from Missouri (Mr. SKELTON). yond Congress’ original intent and may thank the gentlemen for this legisla- The amendment was agreed to. be undermining the law. tion. AMENDMENT NO. 2 OFFERED BY MR. SESSIONS I, along with my colleagues HEATH I rise today in support of H.R. 5013, the IM- The Acting CHAIR. It is now in order SHULER and GEOFF DAVIS, filed an PROVE Act for defense acquisition reform. to consider amendment No. 2 printed in amendment with the Rules Committee This bill reflects two major responsibilities of House Report 111–467. requiring the Department of Defense to our government: keeping Americans safe and Mr. SESSIONS. Mr. Chairman, I have prepare a report on the impact that restoring discipline to our budget by elimi- an amendment at the desk. these exceptions are having on the do- nating unnecessary government spending. The Acting CHAIR. The Clerk will mestic industrial base. However, it was For too long, unscrupulous defense contrac- designate the amendment. brought to our attention that your tors have been taking advantage of the Amer- The text of the amendment is as fol- committee is working on this issue as ican taxpayer, which not only costs us money lows: part of the National Defense Author- but restricts our ability to get our soldiers the Amendment No. 2 offered by Mr. SESSIONS: ization Act for fiscal year 2011 and that equipment they need. At the end of title IV, add the following this matter will be addressed in a few This bill ends waste, fraud, and abuse and new section: weeks. makes sure that we get five cents of value for SEC. 407. CONSTRUCTION OF ACT ON COMPETI- Mr. Chairman, is that correct? every nickel spent. TION REQUIREMENTS FOR THE AC- Mr. SKELTON. Will the gentleman QUISITION OF SERVICES. As a former small business owner in North Nothing in this Act or the amendments yield? Carolina, I know what it takes to balance the Mr. ARCURI. I yield to the gen- made by this Act shall be construed to affect books and get value from purchases. This bill the competition requirements of section 2304 tleman from Missouri. modernizes Department of Defense acquisition of title 10, United States Code, with respect Mr. SKELTON. The gentleman is cor- using practices that have been proven to work to the acquisition of services. rect. The Armed Services Committee in business. The IMPROVE Acquisition Act will has under consideration a number of The Acting CHAIR. Pursuant to boost DOD transparency and accountability, requests from Members of the House House Resolution 1300, the gentleman increase innovation and competitiveness in the related to the impacts of current law from Texas (Mr. SESSIONS) and a Mem- acquisition process, and modernize the DOD regarding titanium and other specialty ber opposed each will control 5 min- workforce and financial management system. metals on the industrial base. We will utes. It reforms the business of our national de- The Chair recognizes the gentleman consider these requests when we mark fense, providing the military with the power to from Texas. up the National Defense Authorization tackle greed, corruption and self-serving busi- Mr. SESSIONS. Mr. Chairman, my Act for fiscal year 2011. I look forward to working with Mr. ness practices that threaten our safety and amendment to the IMPROVE Act sets waste our money the record straight on the importance ARCURI, Mr. SHULER, and Mr. DAVIS on This reform provides a fair and level playing the issue in the coming weeks so that of competition in Federal contracting. field. Businesses that play by the rules should these important concerns are ad- My amendment simply clarifies that not be disadvantaged by those who don’t. dressed. I thank the gentleman for his nothing in this bill restricts the cur- Businesses that have been giving fair value efforts on this bill, H.R. 5013, and for rent public-private competition re- should be rewarded, and contractors that fail agreeing to assist the committee in quirements that already exist in title should not get another dime. This reform re- putting together our authorization bill. 10 of the United States Code. The Acting CHAIR. The time of the stores common sense to a system that should Competing contracts help the govern- gentleman has expired. reward patriotic businesses who are trying to ment to be a ‘‘smarter shopper.’’ This Mr. SKELTON. Mr. Chairman, I yield serve our nation. process simply compares costs and per- 1 minute to the gentleman from North This acquisition reform provides incentives formance currently being used by the Carolina (Mr. ETHERIDGE). for acquisition managers to protect our invest- Federal Government to alternatives (Mr. ETHERIDGE asked and was ment, proud and certain that they can say available in the private and nonprofit given permission to revise and extend ‘‘No!’’ to cynical manipulation of contracts. organizations. Whether the benefits are his remarks.) The bill also sets reasonable expectations produced by keeping the work within Mr. ETHERIDGE. Mr. Chair, I rise in for contractors, that, my North Carolina neigh- the agency, or from contracting out, support of the amendment and thank bors would be surprised aren’t already in the best deal for the taxpayer and our the gentleman for yielding. place. For example, if you owe taxes you national defense should win every sin- This bill really reflects two major re- should not be planning to be paid by the gov- gle time. sponsibilities of our government— ernment. That is basic fairness and judgment, The Office of Management and Budg- keeping America safe and restoring straight out common sense, and this reform et Report on Competitive Sourcing Re- discipline to our budget by eliminating provides more of that. sults for fiscal year 2007 showed that unnecessary government spending—and More broadly, this bill makes sure that our competitions between year 2003 and I commend them. men and women in harm’s way can get the 2007 have saved the taxpayer $7.2 bil- For too long, the unscrupulous de- tools they need to protect our nation quickly lion. Expected savings from competi- fense contractors have been taking ad- and efficiently. Service men and service tion are approximately $1 billion a

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00031 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.037 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2970 CONGRESSIONAL RECORD — HOUSE April 28, 2010 year. Taxpayers will receive a return of The Acting CHAIR. The question is report of the Director required under section about $30 for every dollar spent on on the amendment offered by the gen- 103(f) of the Weapon Systems Acquisition Re- competition. Competition simply gives tleman from Texas (Mr. SESSIONS). form Act of 2009 (Public Law 111-23; 123 Stat. the taxpayer the opportunity to be a The amendment was agreed to. 1716), including information on any perform- ance assessment required by subsection (a) smarter shopper and to get the best AMENDMENT NO. 3 OFFERED BY MR. ANDREWS with significant findings. In addition, if a products available for the very best The Acting CHAIR. It is now in order performance assessment uncovers particu- price. to consider amendment No. 3 printed in larly egregious problems, as identified by the I not only encourage my colleagues House Report 111–467. Director, the Director shall submit to the to support this amendment, but also to Mr. ANDREWS. I have an amend- Committees on Armed Services of the Senate adopt competitive sourcing procedures ment at the desk as the designee of the and the House of Representatives a report on such problems within 30 days after the prob- in all of our Federal agencies. What is author, Mr. HASTINGS. lems are identified. good for the Department of Justice and The Acting CHAIR. The Clerk will the Department of Defense and all Page 9, line 23, strike ‘‘(f)’’ and insert designate the amendment. ‘‘(g)’’. across this government is certainly The text of the amendment is as fol- The Acting CHAIR. Pursuant to good enough for the Department of lows: House Resolution 1300, the gentleman Labor and all agencies. Amendment No. 3 offered by Mr. ANDREWS: This IMPROVE Act is one step to- Page 44, after line 17, insert the following: from New York (Mr. HALL) and a Mem- ward combating the waste, fraud and ‘‘(5) A deliberate workforce development ber opposed each will control 5 min- abuse of contracting within the Fed- strategy that ensures diversity in pro- utes. eral Government. I support this legisla- motion, advancement, and experiential op- The Chair recognizes the gentleman tion and believe it is not only intended portunities commensurate with the general from New York. for the right purposes, but will also workforce outlined in this section. Mr. HALL of New York. Mr. Chair- achieve that. I ask that all of my col- The Acting CHAIR. Pursuant to man, I thank Mr. ANDREWS for sup- leagues support passage of this amend- House Resolution 1300, the gentleman porting this amendment and offering ment. from New Jersey (Mr. ANDREWS) and a me the time to rise in support of in- I reserve the balance of my time. Member opposed each will control 5 creasing reporting requirements and Mr. ANDREWS. Mr. Chairman, I rise minutes. Congressional oversight of defense ac- to claim the time in opposition to the The Chair recognizes the gentleman quisition systems. I thank Chairwoman amendment, although I do not oppose from New Jersey. SLAUGHTER of the Rules Committee for the amendment. Mr. ANDREWS. Mr. Chairman, Mr. making this amendment in order, and The Acting CHAIR. Without objec- HASTINGS makes a very valid amend- also to Chairman SKELTON and Mr. AN- tion, the gentleman from New Jersey is ment to this bill that acknowledges DREWS for bringing H.R. 5013 forward recognized for 5 minutes. that when we want to build the best and supporting the amendment. I There was no objection. workforce and brightest workforce, we would also like to thank the staff of Mr. ANDREWS. Mr. Chairman, I should reach for diversity of the work- the House Armed Services Committee would like to thank my friend from force. Mr. HASTINGS’ amendment ac- and the Office of Legislative Counsel Texas for offering this amendment. I knowledges the fact that we are living for helping draft this amendment. think it makes a very significant con- in a global economy, and one of the I am pleased that we are addressing tribution to this legislation. principal assets of our country is the this critical issue. Last year when Con- What it effectively says is that com- diversity of our population in under- gress reformed defense weapons pro- petition should always be the general standing literally every corner of the curement, we tackled only about 20 rule. Only when there is a compelling world because our people come from cents of each dollar that this Nation reason for an exception should there be every corner of the world. spends on defense contracting. The one. So, for example, if there is a na- Mr. HASTINGS’s amendment directs other 80 percent is on non-weapons sys- tional emergency or there truly is only that the Department of Defense, in its tem contracts. This amounts to more one entity that could provide a good or efforts under Title II of this bill, to im- than $1 billion a day. service, then in those exceptional cir- prove the quality of our workforce, Today’s bill may seems to address cumstances, but only in those excep- take into account the diversity of life the less glamorous side of defense tional circumstances, should there be experiences and backgrounds of those spending until you remember our men no competition before rewarding of a who apply for those positions. It is a and women in uniform rely every day contract. very worthy amendment, entirely con- on contractors to provide them with Again, I think the amendment is sistent with the purposes of the bill. I meals, equipment, and even health very much consistent with the purpose, urge its adoption. care. Increased accountability for spirit and letter of the bill, and I would Mr. ANDREWS. I yield back the bal- these service contracts is critical to urge my colleagues to support it. ance of my time. I reserve the balance of my time. the well-being of our soldiers and to en- Mr. SESSIONS. Mr. Chairman, I do The Acting CHAIR. The question is suring that the taxpayers are not on want to thank the gentleman from New on the amendment offered by the gen- the hook for wasteful spending. tleman from New Jersey (Mr. AN- Jersey (Mr. ANDREWS) not only for his As the Representative for New York’s testimony before the Rules Committee DREWS). 19th Congressional District, I am also yesterday, but also that of Mr. The amendment was agreed to. well aware of importance of this sort of AMENDMENT NO. 4 OFFERED BY MR. HALL OF CONAWAY. defense spending since I have the honor With the intent of their legislation, NEW YORK and privilege of representing the they are trying to streamline the gov- The Acting CHAIR. It is now in order United States military academy at ernment, save money, produce a better to consider amendment No. 4 printed in West Point and serving on its board of product, and perhaps more impor- House Report 111–467. visitors. tantly, to make sure that the Amer- Mr. HALL of New York. Mr. Chair- West Point does not develop major ican people have confidence in the man, I have an amendment at the desk. weapons systems, but it does develop money that they are spending that The Acting CHAIR. The Clerk will the Army’s next generation of leaders. goes for the intended reasons. For that designate the amendment. The cadets at West Point rely on ex- I not only appreciate you, Mr. Chair- The text of the amendment is as fol- actly the services and products covered man, but also the hard work and the lows: by this bill. They, and all service men thoughtfulness that the gentleman Amendment No. 4 offered by Mr. HALL of and women, deserve to know that they New York: from New Jersey (Mr. ANDREWS) has are getting the best. Page 9, after line 22, insert the following: This amendment would require the put into this. ‘‘(f) INCLUSION IN ANNUAL REPORT.—The Di- I yield back the balance of my time. rector of the Office of Performance Assess- DOD to include the performance assess- Mr. ANDREWS. I urge support of the ment and Root Cause Analysis shall include ments required by H.R. 5013 in an an- amendment, and I yield back the bal- information on the activities undertaken by nual report to Congress, similar to pro- ance of my time. the Director under this section in the annual visions in last year’s weapons systems

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00032 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.040 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2971 procurement bill. It also requires that to understand the quality or lack My amendment will help businesses DOD report to Congress when it uncov- thereof of procurement activities. I that are in the vicinity of defense in- ers a particularly egregious problem. commend him for that, and urge sup- stallations, especially small, minority When I visited Afghanistan last port of his amendment. and women-owned businesses and vet- April, I talked to soldiers from all over I reserve the balance of my time. eran-owned businesses, access defense New York and asked them what they b 1300 contracting opportunities. needed, what Congress could do to im- Mr. HALL of New York. Once again, I have heard the frustration of my prove their lives. I expected to hear constituent small businesses that are more about MRAPs or shorter tours of I urge my colleagues to support the amendment and yield back the balance unable to access the complex system of duty. Instead, they told me they want- defense acquisition and procurement. ed more shower facilities with more of my time. Mr. ANDREWS. Mr. Chairman, I For example, one company located just hot water that works, and faster Inter- yield back the time in opposition and across the street from Andrews Air net broadband connections so they urge a ‘‘yes’’ vote. Force Base in Camp Springs, Maryland, could talk with their families. These The Acting CHAIR. The question is in my congressional district has re- services which we take for granted pro- on the amendment offered by the gen- peatedly attempted to access on-base vide a slice of home life and comfort to tleman from New York (Mr. HALL). business opportunities. This company our troops serving in the most difficult The question was taken; and the Act- has the capacity, as indicated by con- of circumstances. ing Chair announced that the ayes ap- tracts they have with other govern- This amendment will help ensure peared to have it. ment entities, but they have been sty- Congress is made aware of defense ac- Mr. HALL of New York. Mr. Chair, I mied on every attempt at Andrews. quisition systems that are not deliv- demand a recorded vote. With this amendment, this company ering a useful service to our men and The Acting CHAIR. Pursuant to will receive the technical assistance women in uniform, or are wasting tax- clause 6 of rule XVIII, further pro- necessary to compete. payer funds. Prompt knowledge of the ceedings on the amendment offered by In my conversations with the base worst offenders will help Congress bet- the gentleman from New York will be leadership at Andrews—and I want to ter address these issues. Our soldiers postponed. serving overseas and here at home and thank them for their hard work—I hear AMENDMENT NO. 5 OFFERED BY MS. EDWARDS OF their desire to work with the sur- the cadets at West Point deserve no MARYLAND rounding community and the busi- less. Their safety, comfort and health The Acting CHAIR. It is now in order nesses in it. With this amendment, depend on it, and I urge my colleagues to consider amendment No. 5 printed in they will receive the authority they to support this amendment and the un- House Report 111–467. derlying bill. Ms. EDWARDS of Maryland. Mr. need to engage in outreach to drive I reserve the balance of my time. Chairman, I have an amendment at the economic development activity di- Mr. ANDREWS. Mr. Chairman, I rise desk. rectly around the base with entities to claim the time in opposition to the The Acting CHAIR. The Clerk will such as the company I referenced in amendment, although we do not oppose designate the amendment. Camp Springs. This is true all across the amendment. The text of the amendment is as fol- the country where we have installa- The Acting CHAIR. Without objec- lows: tions located. tion, the gentleman from New Jersey is Amendment No. 5 offered by Ms. EDWARDS I am encouraged that through this recognized for 5 minutes. of Maryland: provision this scenario can really play There was no objection. Page 61, line 3, strike ‘‘(c)’’ and insert out in Maryland, from Andrews to Fort Mr. ANDREWS. We support Mr. ‘‘(d)’’. Page 61, line 8, strike ‘‘(d)’’ and insert Meade and all across the country; and HALL’s amendment. He has been an ad- ‘‘(e)’’. in some regions this is particularly im- vocate for government transparency Page 61, insert after line 2 the following portant. This provision will help build since his first day in this institution. new subsection: communities around our defense instal- This amendment is a significant stride (c) OUTREACH TO LOCAL FIRMS NEAR DE- lations by directly including the busi- forward for transparency. FENSE INSTALLATIONS.—The program estab- nesses which are oftentimes right Last year’s major weapons system lished under subsection (a) shall include out- along the fence line but are currently reach, using procurement technical assist- bill and this bill vests significant au- left out of the contracting opportunity. thority in the PARCA office, which is ance centers, to notify firms of all business sizes in the vicinity of Department of De- By including these community busi- the review office or the auditing office fense installations of opportunities to obtain nesses, capable community businesses, of the Secretary of Defense. This office, contracts and subcontracts to perform work small businesses, the installations will under this bill, will compile annual re- at such installations. strengthen their bonds to the commu- ports judging the quality of the work Page 61, insert after line 18 the following nity and these areas will receive a by procurement organizations through- new paragraph: much needed economic boost. It is as (3) PROCUREMENT TECHNICAL ASSISTANCE out the Department of Defense. important for those communities as it CENTER.—The term ‘‘procurement technical Mr. HALL’s amendment ensures that is for our installations. We want there those reports become public documents assistance center’’ means a center operating under a cooperative agreement with the De- to be a bond with the local community so the taxpayer can understand with fense Logistics Agency to provide procure- because we want them to embrace the great specificity the quality or lack ment technical assistance pursuant to the installations that surround them. thereof by which their tax dollars are authority provided in chapter 142 of title 10, In the Fourth Congressional District being spent. Mr. HALL is providing a United States Code. of Maryland, I have so many competent valuable tool for oversight. Future The Acting CHAIR. Pursuant to and capable businesses that provide Congresses will be able to understand House Resolution 1300, the gentle- products and services that could really those reports and act efficiently in woman from Maryland (Ms. EDWARDS) be used by the Department of Defense; terms of their oversight responsibil- and a Member opposed each will con- but due to a lack of knowledge and a ities. trol 5 minutes. lack of communication and a lack of I think even more importantly what The Chair recognizes the gentle- outreach, these companies often don’t Mr. HALL has done is given the public woman from Maryland. an opportunity for that oversight. Ms. EDWARDS of Maryland. Mr. even hear about the opportunities until Some of the very best work on fer- Chairman, I yield myself such time as it’s way too late. This amendment reting out wasteful government spend- I may consume. takes a step toward ensuring our busi- ing has come as a result of the First I want to first thank Representative nesses are aware of those opportunities Amendment, from the press and from ANDREWS for introducing the IM- and then supports competing for them. the public. PROVE Act, H.R. 5013, and to Chair- This amendment is a powerful tool So Mr. HALL’s amendment will give man SKELTON for all their hard work for the Defense Department to use to the press and the public, as well as the on this legislation and really steadfast be more inclusive of our businesses Members of this body, an opportunity support of our armed services. that all too often watch competitors

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00033 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.044 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2972 CONGRESSIONAL RECORD — HOUSE April 28, 2010 from other States, regions, and some- believe that this amendment does ex- cerns remain about bundled contracts times even other nations receive con- actly that. and the ability of those businesses to tracting opportunities right in those Again, as Mr. ANDREWS has pointed fully participate on a level playing communities. out, the gentleman from New Jersey field against larger defense contrac- Mr. Chairman, I reserve the balance has pointed out, in fact this is about tors. of my time. enhancing competition. It’s not about I know I have heard these concerns Mr. ANDREWS. Mr. Chairman, I getting in the way of it. And it’s about from businesses in my district, includ- claim time in opposition, although I do giving the Department of Defense the ing just this morning. I’m sure that my not oppose the amendment. Again, I kind of tools that it needs to engage in colleagues can share similar stories. would yield to the minority at any that kind of community outreach. And When the rubber hits the road at the time it wishes. so no more will there be an excuse of Department of Defense, small busi- The Acting CHAIR. Without objec- not understanding how to reach those nesses find a giant pothole waiting for tion, the gentleman from New Jersey is businesses, but they will have a tool to them in pursuing contracts. recognized for 5 minutes. make sure that they get to them. If we are to reform this broken acqui- There was no objection. Mr. Chairman, I urge the passage of sition system, which is the goal of this Mr. ANDREWS. I want to strongly this amendment and yield back the bipartisan bill, we need to ensure that support the gentlelady’s amendment. I balance of my time. it is working for small businesses as think there is scarcely a Member of Mr. ANDREWS. Mr. Chairman, I urge well. We can’t do that without assess- this body who has not encountered a a ‘‘yes’’ vote and yield back the bal- ing how well it is working for those situation where a strong, viable busi- ance of my time. businesses now, and that’s what my ness just outside the gate of a military The Acting CHAIR. The question is amendment intends to do. establishment finds frustration that it on the amendment offered by the gen- My amendment calls upon the De- cannot fairly compete for business op- tlewoman from Maryland (Ms. ED- partment, when developing measures portunities, and the gentlelady has WARDS). to assess contractor performance as well described the situation. The amendment was agreed to. called for in this bill before us, to spe- I have never heard a constituent say AMENDMENT NO. 6 OFFERED BY MS. MOORE OF cifically measure how the prime con- they want a special deal or they want WISCONSIN tractors themselves are involving to have special rules under the com- The Acting CHAIR. It is now in order small businesses, including those petition. What I’ve heard them say, Mr. to consider amendment No. 6 printed in owned by veterans, women, and so- Chairman, is that they want a fair and House Report 111–467. cially and economically disadvantaged even chance to compete, but they want Ms. MOORE of Wisconsin. Mr. Chair- individuals, as well as subcontractors. to be able to show there is some benefit man, I have an amendment at the desk. If I’m not mistaken, Federal law re- to shopping locally. I think this is true The Acting CHAIR. The Clerk will quires that large Federal prime con- in each of the districts that we all rep- designate the amendment. tractors receiving Federal contracting resent. The text of the amendment is as fol- exceeding $550,000—and $1 million in I think the gentlelady has struck ex- lows: the case of construction—on a contract actly the right balance between the Amendment No. 6 offered by Ms. MOORE of which offers subcontracting opportuni- need for true competition, so if the Wisconsin: ties must have subcontracting plans best deal is further away, you take it; Page 6, line 21, insert after ‘‘perform- with goals that provide maximum op- ance’’ the following: ‘‘, including compliance but where there is careful and delib- portunities to these small businesses. erate consideration of the companies with the Department of Defense policy re- garding the participation of small business I am so pleased that the bill already and vendors that already exist in the concerns owned and controlled by socially would require the Department to look community in which the military base and economically disadvantaged individuals, at the excessive use of contract bun- is located, not only does this have the veteran-owned small businesses, service-dis- dling which has previously been identi- benefit of offering better value for the abled, veteran-owned small businesses, and fied as an obstacle for small businesses tax dollar, it also, I think, will build women-owned small businesses’’. competing for DOD contracts. And I better community relations for our The Acting CHAIR. Pursuant to also know that in the report accom- bases throughout the country. House Resolution 1300, the gentle- panying this bill, the House Armed So I think she has done a great serv- woman from Wisconsin (Ms. MOORE) Services Committee urged the Depart- ice by offering this amendment. and a Member opposed each will con- ment to develop a metric for small I would urge a ‘‘yes’’ vote on it and trol 5 minutes. business utilization as part of the new reserve the balance of my time in oppo- The Chair recognizes the gentle- assessment tools the bill requires. My sition. woman from Wisconsin. amendment supports that goal. Ms. EDWARDS of Maryland. Let me Ms. MOORE of Wisconsin. Mr. Chair- Mr. Chairman, I reserve the balance just conclude—and I thank you, Mr. man, my amendment addresses the role of my time. ANDREWS, for your comments because that small businesses can play in help- Mr. ANDREWS. Mr. Chairman, I rise it’s so true that as a Nation we have al- ing our Defense Department and the to claim time in opposition, although I ready seen the beginnings of an eco- men and women in uniform who ulti- do not oppose the amendment. nomic recovery, what looks to be a mately are benefited by a properly The Acting CHAIR. Without objec- strong economic recovery, but we need functioning acquisition process. tion, the gentleman from New Jersey is to make sure that our constituents and Now, there is not an elected official recognized for 5 minutes. that communities and businesses anywhere who won’t tell you that There was no objection. throughout this country, especially the small businesses are the key engines of Mr. ANDREWS. Mr. Chairman, I ones that are located in proximity and economic growth for communities would like to thank the gentlelady for vicinity to defense installations, also across our country, including Mil- offering this amendment and for her enjoy the benefits of this economic re- waukee, which I have the honor to rep- fierce advocacy for the people not only covery. resent. We’ve heard this statement of the Milwaukee area, but small busi- And so it is true, it is my goal that, countless times. nesses across the country. with this amendment, no more of my According to the Department of De- The gentlelady is correct that one of constituents will drive by an on-base fense, small business is the key to sus- the underlying ideas in this bill is that construction job and look at that job taining and improving our industrial defense procurement organizations in progress or see a delivery truck base and to maintain competition and within the Department of Defense will going into that base and through the innovation. Yet despite congressional be evaluated by measurements of how gates of the installation and say to efforts to encourage the participation well they are doing their job. They in themselves, I wish I knew how to get of small economically and socially dis- turn will measure contractors, prime business with the Defense Department. advantaged businesses, including those contractors, on how well they are I understand that frustration, and I un- owned by veterans, small businesses, in doing their job for the servicemember derstand why we must address it; and I Defense Department acquisitions, con- and for the taxpayer.

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00034 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.046 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2973 One of the criteria by which the pro- Amendment No. 7 offered by Mr. MURPHY came to me, and they said, Listen, Rep- curement organization should be meas- of Connecticut: resentative MURPHY. We could do more, ured and by which the prime contrac- Page 60, line 19, insert after the period the but we just don’t have the capacity to following: ‘‘The program shall be limited to tors should be measured is their com- firms within the national technology and in- compete with some of these tradi- pliance with the law with respect to in- dustrial base (as defined in section 2500(1) of tional, large manufacturers. clusion of small businesses. That is title 10, United States Code).’’. This is the type of program that can what the gentlelady’s amendment does. The Acting CHAIR. Pursuant to help DI-EL Tool, and it could probably We strive to include small businesses House Resolution 1300, the gentleman help thousands of others across this country. This amendment simply seeks not only because we acknowledge on from Connecticut (Mr. MURPHY) and a to clarify that this program will be both sides of the aisle that small busi- Member opposed each will control 5 operational here at home. nesses are the economic generator of minutes. Mr. Chair, I reserve the balance of three-quarters of the private sector The Chair recognizes the gentleman jobs created in our country, but also my time. from Connecticut. Mr. ANDREWS. Mr. Chairman, I rise because we understand that competi- Mr. MURPHY of Connecticut. Mr. to claim time in opposition, although I tion that is engendered by the inclu- Chairman, first, let me express my sion of more small businesses improves am not opposed to the amendment. thanks to Mr. ANDREWS, to the com- The Acting CHAIR. Without objec- the quality and value of the con- mittee, and to the ranking members tion, the gentleman from New Jersey is tracting process, it improves the qual- for all of their work by bringing this recognized for 5 minutes. ity of what we’re buying for the serv- bipartisan bill to the floor today. There was no objection. icemembers and their families, and My amendment is similar, but I Mr. ANDREWS. Mr. Chairman, I value for the taxpayer as well. think it adds a very important clari- would like to thank my friend from So the gentlelady’s amendment, I be- fication to the bill. There is a really Connecticut for offering this very im- lieve, institutionalizes the practice of important program in title IV of this portant amendment which clarifies the evaluating inclusion of small business legislation which seeks to have the De- legislation and which, I think, drives competition, not in lieu of a better partment of Defense do outreach to home a very important point. deal, but to create a better deal for the nontraditional suppliers, to nontradi- He has been very focused, as many of servicemembers and for the taxpayer. tional manufacturers, throughout the us have, on protecting and on expand- So I thank her very much for her con- country. ing the industrial base of our country tribution to this bill. With a little bit of outreach and with to create jobs and national security. He I would urge a ‘‘yes’’ vote in favor of a little bit of contracting help, those tells the story of his visit to the firm her amendment, and I reserve the bal- small manufacturers, by and large, in Connecticut that has six or seven ance of my time in opposition. which may have very small numbers of employees. That is precisely the firm Ms. MOORE of Wisconsin. It is time contracts with the Department of De- that title IV of this bill wants the De- that the rhetoric meets reality. Small fense or which may have no contracts partment of Defense to reach out to, business is the key to economic growth at all, can be future suppliers and fu- not simply because we understand the in our country and ensuring that small ture members of our industrial mili- job creation benefits of it but because businesses can compete and that the tary base in this country. we understand the ingenuity and the Defense Department gets the products, This amendment simply seeks to creativity of small firms like the ones services and goods it needs on time and make sure that that program is oper- that Mr. MURPHY just mentioned. Some on budget, which are not mutually ex- ational for firms here in the United of the very best solutions—engineering clusive goals. But unfortunately for States of America, specifically tar- solutions, software solutions, logistical small businesses, business as usual at geting the help to the national tech- solutions—have come from very small the DOD and too many other Federal nology and industrial base, which is de- organizations that are agile enough agencies means little or no business for fined as those companies in the United and creative enough to solve very big them. States and Canada. problems. Innovation is not the exclusive do- We know why it is so important to In his careful reading of this bill, Mr. main of large companies. Small busi- spend our military acquisition dollars MURPHY realized that there was some nesses are innovative. In fact, they here at home. First, we need to be question as to whether or not that out- may have a greater incentive to be in- using taxpayer dollars to grow jobs reach would occur to firms based in the novative because that innovation is right here in our backyard. By better United States or in Canada under the what may allow them to successfully targeting U.S. taxpayer dollars, 70 per- terms of the statute to which he re- compete against larger firms. When we cent of which are used to purchase ferred, and I think he has made a very put all of America’s ingenuity to work, goods through the military budget here important contribution in making sure it benefits our military, our taxpayers, in the United States, we are growing that that outreach is targeted to those and our communities. the American workforce. firms as this is not only a mechanism I urge a ‘‘yes’’ vote on my amend- We also have national security rea- for creating jobs in our country and for ment and yield back the balance of my sons we should be purchasing here at assisting the national security of our time. home. By making sure that we have country but for inviting ingenuity and Mr. ANDREWS. I yield back the bal- American manufacturers building for competition into the defense procure- ance of my time in opposition and urge our military and that we are securing a ment process, therefore, saving the a ‘‘yes’’ vote. long-term industrial manufacturing taxpayers money. The Acting CHAIR. The question is base for our military equipment, we So I very much appreciate his efforts on the amendment offered by the gen- further protect the security of this Na- in bringing forth this amendment, and tlewoman from Wisconsin (Ms. MOORE). tion. I would urge its adoption. The amendment was agreed to. This is a great program, and I am so I reserve the balance of my time. b 1315 thankful to both parties here for bring- Mr. MURPHY of Connecticut. Again, AMENDMENT NO. 7 OFFERED BY MR. MURPHY OF ing it before us for a vote today. I thank you, Mr. ANDREWS, for working CONNECTICUT think that you will find a myriad of with us on this. The Acting CHAIR. It is now in order companies throughout the country Mr. Chair, all of us who represent to consider amendment No. 7 printed in which, with a little bit of help and with small manufacturers have heard the House Report 111–467. a little bit of outreach, can be part of stories as they seek to compete with Mr. MURPHY of Connecticut. Mr. this industrial base. companies that are underpricing them Chairman, I have an amendment at the I can think of one company in Meri- from China, Asia, and across the globe. desk made in order under the rule. den, Connecticut, DI-EL Tool, which is The defense dollars that we spend here The Acting CHAIR. The Clerk will a small manufacturing firm with only on acquisition better targeted to help designate the amendment. about six or seven employees. They’ve those small firms is part of their future The text of the amendment is as fol- got a small number of military con- salvation. Overall, I think this bill rep- lows: tracts as a subcontractor today. They resents a tremendous opportunity for

VerDate Mar 15 2010 03:25 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00035 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.048 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2974 CONGRESSIONAL RECORD — HOUSE April 28, 2010 the U.S. taxpayers and for U.S. manu- There was no objection. I join my colleagues on the Armed facturers alike. Mr. ANDREWS. I yield myself such Services Committee, and I especially I yield back the balance of my time. time as I may consume. want to thank the bill managers—Mr. Mr. ANDREWS. I urge a ‘‘yes’’ vote (Mr. ANDREWS asked and was given ANDREWS, Mr. CONAWAY, Mr. SKELTON, on the amendment, and I yield back permission to revise and extend his re- Mr. MCKEON, Mr. ELLSWORTH, Mr. the balance of my time in opposition. marks.) COFFMAN, and Mr. HUNTER—who The Acting CHAIR. The question is Mr. ANDREWS. Mr. Chairman, I worked so diligently on this bipartisan on the amendment offered by the gen- would like to thank Mr. QUIGLEY for of- legislation. tleman from Connecticut (Mr. MUR- fering this amendment, as well as Ms. I am very pleased to join my col- PHY). GIFFORDS and Mr. BARTLETT for their leagues Congressman QUIGLEY and Con- The amendment was agreed to. joint authorship of this amendment. gresswoman GIFFORDS in offering this AMENDMENT NO. 8 OFFERED BY MR. QUIGLEY As I stated earlier, the basic mecha- amendment. This amendment provides The Acting CHAIR. It is now in order nism in this bill is to provide perform- the Department of Defense the full sup- to consider amendment No. 8 printed in ance criteria for the purchasing organi- port of Congress to use energy effi- House Report 111–467. zations within the Department of De- ciency as a key tool toward improving Mr. QUIGLEY. Mr. Chairman, I have fense. This amendment says that one our national security and toward pro- an amendment at the desk. criterion may be energy-efficiency viding more value to taxpayers for our The Acting CHAIR. The Clerk will standards in the purchasing. defense dollars. This amendment will designate the amendment. Now, what does this mean? send an important and strong signal to The text of the amendment is as fol- It means that the procurement orga- defense contractors that their bids will lows: nization should get the very best deal be more competitive if their products Amendment No. 8 offered by Mr. QUIGLEY: from the point of view of the service- and services will use less energy. Page 7, line 4, insert after ‘‘sustainment’’ member as well as of the taxpayer and I urge the support of this bill. I am the following: ‘‘and energy efficiency’’. that one of the factors that should be Page 26, line 15, insert ‘‘and energy effi- very pleased that, among all of the in- ciency’’ after ‘‘sustainment’’. taken into account is energy effi- stitutions in our country, our Defense ciency. For example, if under this bill The Acting CHAIR. Pursuant to Department is the most aggressive in the procurement organization is pur- House Resolution 1300, the gentleman pursuing good energy policies. We and chasing landscaping services and if, all from Illinois (Mr. QUIGLEY) and a Mem- the world face a huge crisis in energy, other things being equal for the quality ber opposed each will control 5 min- so I am pleased that our Defense De- of the landscaping services and the utes. partment is leading the way in our The Chair recognizes the gentleman price, one of the organizations uses country. I am very pleased to be here from Illinois. more energy-efficient lawnmowers or to support this good amendment and a Mr. QUIGLEY. Mr. Chairman, I rise other gardening machines, that pur- really good bill. today in strong support of H.R. 5013, chase would be favored under this The Acting CHAIR. The question is and I want to commend Mr. ANDREWS mechanism to encourage but not to re- on the amendment offered by the gen- and all of his colleagues who have quire energy efficiency. tleman from Illinois (Mr. QUIGLEY). worked so diligently on this important This goes to a much broader question The amendment was agreed to. piece of legislation. in our country that obviously involves AMENDMENT NO. 9 OFFERED BY MR. QUIGLEY I have offered an amendment, along the fact that we are buying nearly $300 The Acting CHAIR. It is now in order with Congresswoman GIFFORDS and billion a year worth of imported oil to consider amendment No. 9 printed in Congressman BARTLETT, which seeks to from countries around the world which House Report 111–467. make the Department of Defense more may or may not be friendly to us. Mr. QUIGLEY. Mr. Chairman, I have energy efficient. This goal is abso- The largest consumer of energy in an amendment at the desk. lutely essential to improving defense the United States’ economy is the De- The Acting CHAIR. The Clerk will acquisition. partment of Defense. Commendably, designate the amendment. The Department of Defense accounts the Department under Republican and The text of the amendment is as fol- for 80 percent of the U.S. Government’s Democratic administrations has adopt- lows: energy consumption, including 330,000 ed, as a matter of policy, a methodical Amendment No. 9 offered by Mr. QUIGLEY: barrels of oil each day. Just petroleum increase in the amount of renewable Page 17, after line 8, insert the following: energy the Department is using. One of (c) ASSESSMENT OF INDEPENDENCE OF COST products cost the DOD $13 billion per ESTIMATORS AND COST ANALYSTS REQUIRED IN year. Passing my amendment will save the ways it can reduce consumption to- NEXT ANNUAL REPORT ON COST ASSESSMENT money and will conserve energy by in- ward that goal is by implementing en- ACTIVITIES.—In the next annual report pre- cluding energy efficiency as a metric in ergy efficiency. pared by the Director of Cost Assessment performance assessment of defense ac- The amendment the gentleman from and Program Evaluation under section quisitions. It will also make weapon Illinois is offering is entirely con- 2334(e) of title 10, United States Code, the Di- systems more energy efficient, which is sistent with that purpose because what rector shall include an assessment of wheth- er and to what extent personnel responsible a critical reform that can save lives. it does is integrates into the procure- ment decisionmaking process a set of for cost estimates or cost analysis developed In Afghanistan, consider that the by a military department or defense agency Marines alone consume 800,000 gallons ideas which says that the procurement for a major defense acquisition program are of fuel each day. These 800,000 gallons organization will look at the energy-ef- independent and whether their independence of fuel must cross from Pakistan into ficiency ideas of a given competitor for or lack thereof affects their ability to gen- Afghanistan through a lawless border a given contract. erate reliable cost estimates. region. During this 400-mile trip from We support this amendment because The Acting CHAIR. Pursuant to Karachi, convoys are extremely vulner- we believe it will save the taxpayers House Resolution 1300, the gentleman able to IEDs, but energy-efficient money, that it will add value to our ef- from Illinois (Mr. QUIGLEY) and a Mem- weapons systems reduces fuel use, forts to protect the environment, and ber opposed each will control 5 min- which reduces the number of convoys, that it will provide inducements to the utes. which reduces the number of troops in ability to promote renewable energy, The Chair recognizes the gentleman harm’s way. so we would urge a ‘‘yes’’ vote. from Illinois. I urge you to support my amendment Mr. Chairman, I yield the balance of Mr. QUIGLEY. Mr. Chairman, this and to support energy efficiency in the my time to one of the coauthors of the amendment directs the Cost Assess- defense acquisition process, and I yield amendment, the gentleman from Mary- ment and Program Evaluation, or back the balance of my time. land (Mr. BARTLETT). CAPE, in its next report to Congress to Mr. ANDREWS. Mr. Chairman, I rise The Acting CHAIR. The gentleman do two things: to claim time in opposition, although I from Maryland is recognized for the 2 First, the amendment asks the CAPE am not opposed to the amendment. minutes remaining. to assess whether and to what extent The Acting CHAIR. Without objec- Mr. BARTLETT. Mr. Chairman, I am program cost estimators for major de- tion, the gentleman from New Jersey is very pleased and proud to rise today in fense acquisition programs are, indeed, recognized for 5 minutes. strong support of H.R. 5013. independent.

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00036 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.051 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2975 Second, the amendment asks the new equipment for the military. This is Department of Defense for the purpose of ob- CAPE to determine whether a lack of a smart amendment from a green tech- taining the services of a senior mentor. independence affects their ability to nology standpoint. But let me also (b) INTERPRETATION.—Nothing in this sec- tion shall be interpreted to prohibit the em- generate reliable cost estimates. stress that this is not just about being ployment of a senior mentor as a highly For 30 years now, DOD officials, ana- green. First and foremost, platform ef- qualified expert pursuant to section 9903 of lysts, and industry experts have argued ficiency is a national security issue. title 5, United States Code, subject to the that a primary cause of the cost Our military’s use of fuel and elec- pay and term limitations of that section. A growth in DOD acquisitions is unreal- tricity has intertwining impacts on our senior mentor employed as a highly qualified istically low cost estimates. Many of greater national security. expert shall be required to submit a financial these unrealistic cost estimates are A 2007 Army report cites 170 service- disclosure report and comply with all con- generated by individuals, such as pro- members killed transporting fuel or flict of interest laws and regulations applica- gram representatives, who have a stake ble to other Federal employees with similar guarding fuel convoys. Requiring the conditions of service. in the approval of their systems. The department to examine how well cur- (c) DEFINITIONS.—In this section: newly created CAPE is designed to gen- rent and new systems use that precious (1) The term ‘‘contract for personal serv- erate reliable cost estimates, but cost commodity will help us reduce con- ices’’ means a contract awarded under the estimates are still generated by con- sumption, a good green tech benefit, authority of section 129b(a) of title 10, tractors and program representatives but also saving lives of our military, United States Code, or section 3109 of title 5, whose independence is paramount to the overarching national security ben- United States Code. creating reliable estimates. This efit. (2) The term ‘‘component of the Depart- ment of Defense’’ means a military depart- amendment seeks to address this prob- In terms of electricity usage, most of ment, a defense agency, a Department of De- lem. our military bases’ critical loads are fense field activity, a unified combatant I urge my colleagues to support this dependent upon the fragile national command, or the joint staff. commonsense amendment, and I re- grid system that is underpinned by a 60 (3) The term ‘‘senior mentor’’ means any serve the balance of my time. percent dependence on foreign oil. person— Mr. ANDREWS. Mr. Chairman, I rise The Acting CHAIR. The time of the (A)(i) who has served as a general or flag in opposition, although I do not intend gentlewoman has expired. officer in the Armed Forces; or to oppose the amendment. Mr. QUIGLEY. I yield the gentlelady (ii) who has served in a position at a level at or above the level of the senior executive The Acting CHAIR. Without objec- 1 additional minute. service; tion, the gentleman from New Jersey is Ms. GIFFORDS. This represents a (B) has retired within the 10 years pre- recognized for 5 minutes. single point of possible failure for our ceding the award of a contract; and There was no objection. most important military assets. The (C) who serves as a mentor, teacher, train- Mr. ANDREWS. Mr. Chairman, I, in requirement that this amendment puts er, or advisor to government personnel on fact, support this amendment. I think in place will mean we must take into matters pertaining to the former official du- it not only adds important tools to the account the stresses placed upon the ties of such person. bill before the body today but to the grid and how we can reduce those to The Acting CHAIR. Pursuant to law that was enacted last year. enhance the security of our defense in- House Resolution 1300, the gentleman Both today’s bill and last year’s law frastructure. from Oregon (Mr. SCHRADER) and a require the Department of Defense to By considering the use of on-site re- Member opposed each will control 5 make early decisions about whether a newable generation, like the array that minutes. product or service it is buying or a sys- will be installed at Davis-Monthan Air The Chair recognizes the gentleman tem that it is buying is on track or Force Base in my district, we can bet- from Oregon. not. If it is not on track, the idea is to ter secure our base critical infrastruc- Mr. SCHRADER. Mr. Chairman, I either get it on track or to not buy it. ture against possible attack. yield myself such time as I may con- This is how we can eliminate some of I urge my colleagues to support this sume. the $296 billion in cost overruns in amendment and vote for the under- I rise today because it is no secret to weapons systems that the Government lying bill. I commend Chairman SKEL- any Member of the House that the Accountability Office found in its re- TON and Ranking Member MCKEON for United States faces a looming budget port of 2 years ago. bringing this to the floor and Congress- crisis. To address this crisis and bring our deficits under control, we must b 1330 men ANDREWS and CONAWAY for their hard work putting it together. consider all options. Today we con- What Mr. QUIGLEY has done is to say Mr. ANDREWS. Mr. Chairman, I urge tinue our work on reining in the prof- that the cost estimators on whom we a ‘‘yes’’ vote, and I yield back the bal- ligate spending on defense contracts. are relying need to be truly inde- ance of my time. We do this work to strengthen our pendent and competent. If that esti- Mr. QUIGLEY. I yield back the bal- budget and our national security. mator has a vested interest in buying ance of my time. The amendment I am offering today the product or building the system, The Acting CHAIR. The question is will control a small portion of this then he or she is not going to give us on the amendment offered by the gen- spending and ensure necessary trans- an accurate or honest judgment about parencies are in place within the de- tleman from Illinois (Mr. QUIGLEY). whether to go forward. So this amend- The amendment was agreed to. fense-industrial relationship. My ment assures that there will be both amendment addresses the Department AMENDMENT NO. 10 OFFERED BY MR. SCHRADER independence and competence in those of Defense’s use of contracts for per- cost estimators. I think it’s an excel- The Acting CHAIR. It is now in order sonal services to hire senior mentors. lent addition to the bill. to consider amendment No. 10 printed The current use of contracts for senior I reserve the balance of my time. in House Report 111–467. mentor personal services circumvents Mr. QUIGLEY. Mr. Chairman, I yield Mr. SCHRADER. Mr. Chairman, I necessary transparency protocols the 1 minute to my friend and colleague, have an amendment at the desk. rest of the department has. the gentlelady from Arizona (Ms. GIF- The Acting CHAIR. The Clerk will The Defense Department has no uni- FORDS). designate the amendment. form policy on the use of the senior Ms. GIFFORDS. Mr. Chairman, as The text of the amendment is as fol- mentor contracts, which vary among one of the sponsors of this amendment, lows: the services. They do not know, we do and a strong advocate for defense ac- Amendment No. 10 offered by Mr. not know, and the public does not quisition reform, I rise today in sup- SCHRADER: know how many of these contracts are port of the amendment and urge its At the end of title II, add the following awarded or even at what cost. My new section: passage. amendment would open these contracts SEC. 210. PROHIBITION ON PERSONAL SERVICES The amendment requires the Depart- CONTRACTS FOR SENIOR MENTORS. to regular procedures for transparency. ment of Defense to make energy effi- (a) PROHIBITION.—The Secretary of Defense The amendment will establish standard ciency a consideration in buying and shall prohibit the award of a contract for rates of pay for senior mentors and developing new weapons systems and personal services by any component of the allow and apply financial disclosure

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00037 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.056 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2976 CONGRESSIONAL RECORD — HOUSE April 28, 2010 and conflict of interest provisions al- I think is possible under our current rennial defense reviews performed pursuant ready applicable to other Federal em- statute and laws. This should actually to section 118 of this title. ployees. The military will still benefit make it easier for our members who ‘‘(2) Managing the industrial base. from the knowledge and wisdom of re- have served our country gallantly over ‘‘(3) Providing recommendations to the Secretary on budget matters pertaining to tired officers while ensuring taxpayer their careers to come back and con- the industrial base. money is spent wisely and appro- tinue to share with us in a forthright, ‘‘(4) Providing recommendations to the priately. transparent manner. We win, they win, Secretary on supply chain management and I reserve the balance of my time. and the taxpayer wins. supply chain vulnerability. Mr. CONAWAY. Mr. Chairman, I I yield back the balance of my time. ‘‘(5) Providing input on industrial base claim the time in opposition even The Acting CHAIR. The question is matters to defense acquisition policy guid- though I am not opposed to the amend- on the amendment offered by the gen- ance. ‘‘(6) Issuing and revising the Department of ment. tleman from Oregon (Mr. SCHRADER). The Acting CHAIR. Without objec- Defense technology and industrial base guid- The amendment was agreed to. ance required by section 2506 of this title. tion, the gentleman from Texas is rec- AMENDMENT NO. 11 OFFERED BY MR. CONNOLLY ‘‘(7) Such other duties as are assigned by ognized for 5 minutes. OF VIRGINIA the Secretary. There was no objection. The Acting CHAIR. It is now in order ‘‘(e) REPORTING OF ACTIVITIES.—The Sec- Mr. CONAWAY. Mr. Chairman, I to consider amendment No. 11 printed retary shall include a section describing the want to just add a word of caution to in House Report 111–467. activities of the Council in the annual report the amendment. We intend to support to Congress required by section 2505 of this Mr. CONNOLLY of Virginia. Mr. title.’’. it. The Department of Defense has in Chairman, I have an amendment at the fact instituted a suspension of the pol- (2) CLERICAL AMENDMENT.—The table of desk. sections at the beginning of such chapter is icy that led to these problems, and The Acting CHAIR. The Clerk will amended by adding at the end the following have put in place a policy that looks designate the amendment. new item: very similar to this codification of the The text of the amendment is as fol- ‘‘188. Industrial Base Council.’’. rules. The Department of Defense will lows: (b) INDUSTRIAL BASE FUND.— live under those rules over the next (1) IN GENERAL.—Chapter 148 of title 10, Amendment No. 11 offered by Mr. several months, but I worry that the United States Code, is amended by adding at CONNOLLY of Virginia: the end the following new section: policy is too strict and will limit De- At the end of title IV, add the following partment of Defense’s access to the new section: ‘‘§ 2508. Industrial Base Fund ‘‘(a) ESTABLISHMENT.—The Secretary of De- right people for the right information SEC. 407. INDUSTRIAL BASE COUNCIL AND FUND. at the right time. None of us want fense shall establish an Industrial Base Fund (a) INDUSTRIAL BASE COUNCIL.— (in this section referred to as the ‘Fund’). that. (1) IN GENERAL.—Chapter 7 of title 10, ‘‘(b) CONTROL OF FUND.—The Fund shall be We all want transparency, we all United States Code, is amended by adding at under the control of the Industrial Base want evidence of conflict of interest to the end the following new section: Council established pursuant to section 188 be out there so that we all know that. ‘‘§ 188. Industrial Base Council of this title. I am in agreement with the spirit of ‘‘(a) COUNCIL ESTABLISHED.—There is in the ‘‘(c) AMOUNTS IN FUND.—The Fund shall what the gentleman is trying to do; I Department of Defense an Industrial Base consist of amounts appropriated or otherwise Council. made available to the Fund. just offer a word of caution that if the ‘‘(d) USE OF FUND.—Subject to subsection ‘‘(b) MISSION.—The mission of the Indus- practice under the Department of De- (e), the Fund shall be used— trial Base Council is to assist the Secretary fense’s current policy, which is very ‘‘(1) to support the monitoring and assess- in all matters pertaining to the industrial ment of the industrial base required by this similar to this, shows problems and base of the Department of Defense, including chapter; issues that we don’t anticipate with matters pertaining to the national defense ‘‘(2) to address critical issues in the indus- this, that we would in conference come technology and industrial base included in trial base relating to urgent operation needs; back and address those properly. chapter 148 of this title. ‘‘(3) to support efforts to expand the indus- Mr. ANDREWS. Will the gentleman ‘‘(c) MEMBERSHIP.—The following officials trial base; and of the Department of Defense shall be mem- yield? ‘‘(4) to address supply chain bers of the Council: Mr. CONAWAY. I yield to the gen- vulnerabilities. ‘‘(1) The Chairman of the Council, who tleman from New Jersey. ‘‘(e) USE OF FUND SUBJECT TO APPROPRIA- shall be the Under Secretary of Defense for Mr. ANDREWS. I support the amend- TIONS.—The authority of the Secretary of Acquisition, Technology, and Logistics, the ment. I also share my friend the rank- Defense to use the Fund under this section in functions of which may be delegated by the any fiscal year is subject to the availability ing member’s concerns. I think the Under Secretary only to the Principal Dep- amendment addresses them in two of appropriations for that purpose. uty Under Secretary of Defense for Acquisi- ‘‘(f) EXPENDITURES.—The Secretary shall ways. One is that the language of the tion, Technology, and Logistics. establish procedures for expending monies in amendment is quite flexible, that as ‘‘(2) The Executive Director of the Council, the Fund in support of the uses identified in long as there is transparency and ad- who shall be an official from within the Of- subsection (d), including the following: herence to high quality, the depart- fice of the Under Secretary responsible for ‘‘(1) Direct obligations from the Fund. ment is not restricted from these rela- industrial base matters and who shall report ‘‘(2) Transfers of monies from the Fund to directly to the Under Secretary or the Prin- relevant appropriations of the Department of tionships. It simply has to be more cipal Deputy Under Secretary. careful about them. And secondly, ob- Defense.’’. ‘‘(3) Officials from within the Office of the (2) CLERICAL AMENDMENT.—The table of viously the committee has continuing Secretary of Defense, as designated by the sections at the beginning of such chapter is oversight over this issue. The gen- Secretary, with direct responsibility for amended by adding at the end the following tleman has my assurances that if we matters pertaining to following areas: new item: see an undue restriction on access to ‘‘(A) Manufacturing. ‘‘2508. Industrial Base Fund.’’. ‘‘(B) Research and development. talent, then we are in a position to The Acting CHAIR. Pursuant to take appropriate action to correct that ‘‘(C) Systems engineering and system inte- gration. House Resolution 1300, the gentleman problem. ‘‘(D) Services. from Virginia (Mr. CONNOLLY) and a Mr. CONAWAY. With that, I will sup- ‘‘(E) Information Technology. Member opposed each will control 5 port the amendment and yield back the ‘‘(F) Sustainment and logistics. minutes. balance of my time. ‘‘(4) The Director of the Defense Logistics The Chair recognizes the gentleman Mr. SCHRADER. In closing, I appre- Agency. from Virginia. ciate the concerns of the Member from ‘‘(5) Officials from the military depart- Mr. CONNOLLY of Virginia. Mr. Texas and acknowledge the Member ments, as designated by the Secretary of Chairman, I yield myself such time as from New Jersey’s responses. I think each military department, with responsi- I may consume. that this is a good amendment. It does bility for industrial base matters relevant to the military department concerned. Let me start by thanking the chair- hopefully make sure that our senior of- ‘‘(d) DUTIES.—The Council shall assist the man and ranking member of the com- ficers can continue to give their in- Secretary in the following: mittee and the subcommittee for their sight, knowledge, and wisdom, without ‘‘(1) Providing input on industrial base leadership on this thoughtful legisla- any hint or taint of opprobrium, which matters to strategy reviews, including quad- tion to deliver long-needed reforms to

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00038 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.059 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2977 our military acquisition. I would also This amendment, Mr. Chairman, cre- and generals are paid up to $1,600 a day like to acknowledge the tremendous ates an Industrial Base Fund, which to be Defense Department ‘‘mentors.’’ work of the Armed Services Commit- when supported by appropriations, will Eighty percent of these mentors have tee’s bipartisan Panel on Acquisition support the actions and recommenda- ties to defense contractors, in what one Reform, led of course by Mr. ANDREWS tions of the council itself. This is a observer described as an amazing con- of New Jersey and Mr. CONAWAY of good government initiative that will flict of interest. Texas. strengthen our industrial base, b 1345 My amendment builds upon the pan- strengthen our small business commu- el’s recommendations for getting the nity, and our military readiness mov- I do want to say that I commend the most out of the industrial base. Defin- ing forward. Secretary of Defense, who has, as I un- ing and assessing the industrial base I urge my colleagues to support the derstand, put in new rules recently to has been an ongoing challenge for both amendment and these important acqui- try to correct some of this, but this is the Department of Defense and Con- sition reforms. a problem that has been crying out for gress, dating back to the creation of I reserve the balance of my time. action, and I hope that this bill will the Armed Forces themselves. One of Mr. CONAWAY. Mr. Chairman, I correct some of this that has gone on. the key findings of the panel was the claim time in opposition even though I It’s something that we need to keep an need to cast a wider net in terms of de- am in support of the amendment. eye on to make sure that some of these fining the industrial base beyond the The Acting CHAIR. Without objec- scandalous types of sweetheart insider traditional players. Many of today’s tion, the gentleman from Texas is rec- deals don’t continue as they have, un- technology innovations are being ognized for 5 minutes. fortunately, in the past. brought forth by small- and mid-sized There was no objection. Mr. CONAWAY. Mr. Chairman, I companies that are more commercial Mr. CONAWAY. Mr. Chairman, I yield to the gentleman from New Jer- in nature and don’t fit the traditional yield as much time as he may consume sey. mold of the industrial base. While we to my colleague from Tennessee (Mr. Mr. ANDREWS. I thank my friend for must preserve those unique industrial DUNCAN). yielding. capabilities that have made our Armed Mr. DUNCAN. I thank the gentleman I would like to thank our friend from Forces the world’s most advanced mili- from Texas for yielding me this time. I Tennessee for his comments, which we tary force, we also must adjust to the rise in support of this bill to make embrace. I think one of the purposes of innovative changes within the supply some very needed and commonsense re- Mr. SCHRADER’s amendment, which we chain to ensure that we provide our forms in the defense acquisition pro- just adopted, was to try to address that troops with the tools they need to per- gram. concern, and we thank him for his sup- form their duties. To accomplish this, I want to say that I support the last port. we need to adjust our industrial policy amendment that just passed to help re- I want to commend and thank my to reflect the growing importance of lieve the problem that I have been con- friend from Virginia for his excellent services and information technology cerned about for a long time, the re- amendment. We have tried to establish providers in the industrial base. volving door at the Pentagon, and I in this bill the idea that the Defense We also need, Mr. Chairman, to ac- support this amendment which hope- Department should coordinate the in- knowledge the importance of systems fully will help, and I think is intended, dustrial base and broaden it so the engineering and integration to our at least in part, to make it easier for servicemembers and taxpayers get a military operations. This amendment small businesses to get involved in the better deal and we invite ingenuity and would create an Industrial Base Coun- Defense Department contracting proc- innovation. Mr. CONNOLLY has made cil within the DOD. The council would ess. Far too many defense contracts in sure that our good intentions in this complement the Blue Ribbon Panel on recent years have been sweetheart in- bill will become a good reality. By the Eliminating Barriers to Contracting sider deals that have gone primarily to establishment of the council that Mr. with the Department of Defense that’s very large businesses, very large, well- CONNOLLY establishes, there will be a also created by this legislation. Where- connected businesses. group that oversees the implementa- as the Blue Ribbon Panel would be USA Today reported on its front page tion of the ideas that we have. comprised of industry representatives on December 29 that the Durango So I think it strengthens the bill con- that will present recommendations to Group has 59 former high ranking mili- siderably. I commend Mr. CONNOLLY for the Pentagon on eliminating barriers tary officers advising clients on how to being a fierce advocate for his district to those nontraditional industrial base get defense contracts while many are and his area, which is so intimately in- suppliers, this council would be tasked also being paid by the Defense Depart- volved in solving this problem. I thank with assessing those and other pro- ment to give it advice. And they are him for his contribution and urge a posed policy changes and then recom- drawing huge pensions, with some get- ‘‘yes’’ vote. mending specific actions to the Sec- ting 15,000 a month or more plus free Mr. CONAWAY. Mr. Chairman, I retary of Defense. health care. yield back the balance of my time. The council will be comprised of the Some of these people connected with Mr. CONNOLLY of Virginia. I just Under Secretary of Defense for Acquisi- this Durango Group even serve as cor- want to thank my colleague for his tion, Technology, and Logistics, who porate directors or paid advisers to the gracious remarks. shall chair the group. An official from defense contractors in addition to their Mr. Chair, I have no further requests within the Under Secretary’s office will pay from Durango. The founder of Du- for time, and I yield back the balance be appointed to oversee the council. rango, a former Air Force chief of staff, of my time. Council membership will also include: refused to be interviewed for the USA The Acting CHAIR. The question is officials within the Secretary’s office Today story about this, but he received on the amendment offered by the gen- responsible for manufacturing, re- $180,000 in 2009 from one defense con- tleman from Virginia (Mr. CONNOLLY). search and development, systems engi- tractor, $127,000 from another, served The question was taken; and the Act- neering and systems integration, serv- on the board of four other defense con- ing Chair announced that the ayes ap- ices, information technology, and tractors that do not disclose compensa- peared to have it. sustainment and logistics; the director tion, was a board member of another Mr. CONNOLLY of Virginia. Mr. of DLA; and representatives from other company that buys and sells defense Chair, I demand a recorded vote. military departments. companies, and a consultant to three The Acting CHAIR. Pursuant to In addition to providing budget and other defense giants. He has been de- clause 6 of rule XVIII, further pro- policy guidance to the Secretary on scribed as a ‘‘military-industrial leg- ceedings on the amendment offered by modernizing the industrial base, the end’’ by one columnist. Too much of the gentleman from Virginia will be council will provide strategic input for this has gone on in recent years. And I postponed. the Quadrennial Defense Review and hope and I think that this is what in AMENDMENT NO. 12 OFFERED BY MR. CHILDERS other reports, and will revise and issue part this bill is directed at. The Acting CHAIR. It is now in order new guidance for the DOD’s technology In addition to pensions as high as to consider amendment No. 12 printed and industrial base. $220,000 a year, many retired admirals in House Report 111–467.

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00039 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.061 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2978 CONGRESSIONAL RECORD — HOUSE April 28, 2010 Mr. CHILDERS. Mr. Chairman, I cused on job creation and preservation Mrs. DAHLKEMPER. Mr. Chairman, have an amendment at the desk. as well as restoring a balanced budget. I have an amendment at the desk. The Acting CHAIR. The Clerk will My amendment ensures that the DOD The Acting CHAIR. The Clerk will designate the amendment. can consider the impact of defense ac- designate the amendment. The text of the amendment is as fol- quisition on local jobs and that the The text of the amendment is as fol- lows: government has additional tools to find lows: Amendment No. 12 offered by Mr. new ways to cut costs and promote fis- Amendment No. 13 offered by Mrs. CHILDERS: cal responsibility. DAHLKEMPER: Page 48, line 21, insert ‘‘market research I urge my colleagues to support this At the end of title IV, add the following strategies (including assessments of local amendment. new section: contracting capabilities),’’ after ‘‘services Mr. Chairman, I reserve the balance SEC. 407. ACQUISITION SAVINGS PROGRAM. contracting,’’. of my time. (a) PROGRAM REQUIRED.— The Acting CHAIR. Pursuant to (1) IN GENERAL.—The Secretary of Defense, Mr. ANDREWS. Mr. Chairman, I rise acting through the Under Secretary of De- House Resolution 1300, the gentleman to claim the time in opposition to the fense for Acquisition, Technology, and Logis- from Mississippi (Mr. CHILDERS) and a amendment, although I am not opposed tics, shall carry out a program to provide op- Member opposed each will control 5 to the amendment. portunities to provide cost-savings on non- minutes. The Acting CHAIR. Without objec- developmental items. The Chair recognizes the gentleman tion, the gentleman from New Jersey is (2) SAVINGS.—The program, to be known as from Mississippi. recognized for 5 minutes. the Acquisition Savings Program, shall pro- Mr. CHILDERS. I would like to add There was no objection. vide any person or activity within or outside the Department of Defense with the oppor- my thanks to Mr. ANDREWS and the Mr. ANDREWS. I thank my friend from Mississippi for offering this very tunity to offer a proposal to provide savings House Armed Services Committee, es- in excess of 15 percent, to be known as an ac- pecially my dear friend and chairman, well-thought-out amendment. One of the key ideas of this bill is quisition savings proposal, for covered con- IKE SKELTON, for putting forth this im- tracts. portant legislation. that we have a high-quality, well- (3) SUNSET.—The program shall cease to be Changing the way the Department of trained acquisition workforce. Mr. required on September 30, 2013. Defense conducts its acquisition activi- CHILDERS’s amendment makes sure (b) QUALIFYING ACQUISITION SAVINGS PRO- ties is essential to restoring fiscal dis- that that workforce is well trained in a POSALS.—A proposal shall qualify as an ac- cipline in our government. I commend key area, which is understanding that quisition savings proposal for purposes of this section if it offers to supply a non- the committee’s efforts to ensure that a contract does not simply affect the firm that wins the contract and the developmental item that is identical to, or acquisition personnel at the Depart- equivalent to (under a performance specifica- ment of Defense are well trained to employees that work for that firm. It tion or relevant commercial standard), an make the best decisions for both our affects the entire region for which a item being procured under a covered con- national security and our economy. contract is awarded. tract. My amendment makes a small addi- Now, again, nothing in Mr. (c) REVIEW BY CONTRACTING OFFICER.—Each tion to this training by including CHILDERS’s amendment would divert acquisition savings proposal shall be re- the procurement organizations away viewed by the contracting officer for the cov- ‘‘market research strategies.’’ This ered contract concerned to determine if such minor addition is of great importance from best value for the taxpayer dollar. But what he does suggest is that when proposal qualifies under this section and to to many districts like mine. Today, up- calculate the savings provided by such pro- wards of 4,000 North Mississippians are one defines the concept of value, it’s posal. employed by defense contractors, and broader than just the four corners of (d) ACTIONS UPON FAVORABLE REVIEW.—If that number continues to grow. These the contract being considered. The area the contracting officer for a covered con- employees work hard every day to cre- he represents so ably is one where the tract determines after review of an acquisi- economy really pivots on the presence tion savings proposal that the proposal ate many of the products and services would provide an identical or equivalent that keep our troops safe in theater or absence of military contracts, and in his efforts to try to make sure that his nondevelopmental item at a savings in ex- and protect our homeland from outside cess of 15 percent, and that a contract award threats. These include many contrac- region prospers, I know that he wants to the offeror of the proposal would not re- tors on Columbus Air Force Base as to be sure, as each of us does, that sult in the violation of a minimum purchase well as contractors that produce every- there is fair consideration of the re- agreement or otherwise cause a breach of thing from military uniforms to gional and community economic im- contract for the covered contract, the con- MRAPS and Unmanned Aerial Sys- pact of a contracting decision. tracting officer may make an award under the covered contract to the offeror of the ac- tems. I think the amendment that he has offered, which goes to the training of quisition savings proposal or otherwise The defense companies are vital to award a contract for the nondevelopmental the economy of Mississippi. It is impor- decision-makers, is entirely appro- priate in that regard. We appreciate his item concerned to such offeror. tant that when the Department of De- (e) ACTIONS UPON UNFAVORABLE REVIEW.— fense makes a decision about who re- contribution to the bill, and I would If a contracting officer determines after re- ceives a military contract and what encourage the Members to vote ‘‘yes.’’ view of an acquisition savings proposal that Mr. Chairman, I reserve the balance term that contract contains, it con- the proposal would not satisfy the require- of my time. siders how surrounding communities ments of this section, the contracting officer Mr. CHILDERS. I want to thank my shall debrief the person or activity offering are affected and how these commu- colleague and the gentleman for his such proposal within 30 days after comple- nities can contribute to that contract. concurrence in my amendment. I urge tion of the review. The addition of market research my colleagues to support this amend- (f) REPORT.—Not later than March 1, 2013, strategies to acquisition training ment and the underlying bill as well. the Secretary of Defense shall submit to the would ensure that the acquisition per- Committees on Armed Services of the Senate Mr. Chairman, I have no further re- and House of Representatives a report re- sonnel at the Department of Defense quests for time, and I yield back the are trained to take into account the garding the program, including the number balance of my time. of acquisition savings proposals submitted, local economy surrounding a potential Mr. ANDREWS. I yield back the bal- the number favorably reviewed, the cumu- defense contractor and how the unique ance of my time. lative savings, and any further recommenda- makeup of the local community could The Acting CHAIR. The question is tions for the program. provide added value to the department. on the amendment offered by the gen- (g) DEFINITIONS.—In this section: It will assist the department in taking tleman from Mississippi (Mr. (1) NONDEVELOPMENTAL ITEM.—The term ‘‘nondevelopmental item’’ has the meaning into account the unique workforces CHILDERS). that communities like the Golden Tri- The amendment was agreed to. provided for such term in section 4 of the Of- angle region in my district encompass fice of Federal Procurement Policy Act (41 AMENDMENT NO. 13 OFFERED BY MRS. U.S.C. 403). DAHLKEMPER and their ability to save the govern- (2) COVERED CONTRACT.—The term ‘‘covered ment money. The Acting CHAIR. It is now in order contract’’— During this difficult economy, it is to consider amendment No. 13 printed (A) means an indefinite delivery indefinite important that Congress remains fo- in House Report 111–467. quantity contract for property as defined in

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00040 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.063 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2979 section 2304d(2) of title 10, United States lower price. There are rules which friends and colleagues HOWARD COBLE Code; and today would preclude the Defense De- from North Carolina and MIKE MICHAUD (B) does not include any contract awarded partment from taking advantage of from Maine for helping me sponsor this under an exception to competitive acquisi- that offer. amendment. tion authorized by the Small Business Act (15 U.S.C. 631 et seq.) What Mrs. DAHLKEMPER’s amendment This amendment is very simple in its (3) PERFORMANCE SPECIFICATION.—The term says is that so long as the quality is intent. For over 60 years, Mr. Chair- ‘‘performance specification’’ means a speci- preserved and so long as there at least man, the Berry amendment has al- fication of required item functional charac- is a 15 percent savings at a minimum lowed the Department of Defense to teristics. and all other rules are complied with buy clothing and other apparel mate- (4) COMMERCIAL STANDARD.—The term that the Defense Department can take rials that are made in the United ‘‘commercial standard’’ means a standard advantage of that offer. Any business States when available. There has, in re- used in industry promulgated by an accred- in this country would jump at that op- cent years, however, been a list of ited standards organizations that is not a Federal entity. portunity. And the gentlewoman has clothing articles that our soldiers and offered an amendment which makes an military personnel are required to pur- The Acting CHAIR. Pursuant to awful lot of sense, which will let the chase that are not provided by the De- House Resolution 1300, the gentle- Department of Defense operate on partment of Defense. The Department woman from Pennsylvania (Mrs. those sound business principles. of Defense does provide a clothing cash DAHLKEMPER) and a Member opposed Again, her amendment does not pro- allowance for this purchase, but these each will control 5 minutes. vide for any deviation from the rules of items that are on this list are not nec- The Chair recognizes the gentle- conflict of interest or legal procedure, essarily made in the United States. woman from Pennsylvania. but it says if there is an opportunity to This amendment would require the Mrs. DAHLKEMPER. Mr. Chairman, achieve at least a 15-percent reduction GAO to look at this list, to look at the my amendment to the IMPROVE Ac- and all other things are appropriate, possibilities and potential for making quisition Act of 2010 will help cut then we should achieve that reduction. these materials in the United States or wasteful spending and ensure that tax- This makes eminent common sense. is the capacity there to make them payer funds used for our national de- We thank her for offering the amend- there now to meet the demands, get fense are spent responsibly and effi- ment. I urge a ‘‘yes’’ vote. with the Department of Defense, and ciently. I yield back the balance of my time. then the Department of Defense, with- The agencies charged with our de- The Acting CHAIR. The question is in 6 months, would be required to get fense have a responsibility to ensure on the amendment offered by the gen- back to the House Armed Services that taxpayers get the highest return tlewoman from Pennsylvania (Mrs. Committee with its findings as to on their investment while providing for DAHLKEMPER). whether or not these materials could the safety of our soldiers and of our The amendment was agreed to. be made in the United States under the Nation. AMENDMENT NO. 14 OFFERED BY MR. KISSELL Berry amendment. So it’s a common- My amendment gives the Department The Acting CHAIR. It is now in order sense approach to expanding the Berry of Defense a way to save 15 percent or to consider amendment No. 14 printed amendment. more on its existing contracts for non- in House Report 111–467. Mr. Chairman, I reserve the balance developmental items by allowing con- Mr. KISSELL. Mr. Chairman, I have of my time. tract officers to opt for more efficient an amendment at the desk. Mr. ANDREWS. Mr. Chairman, I rise proposals as long as doing so does not The Acting CHAIR. The Clerk will to claim time in opposition to the breach existing contracts. designate the amendment. amendment, although I do not oppose This legislation furthers our commit- The text of the amendment is as fol- the amendment. ment to fiscal responsibility in defense lows: The Acting CHAIR. Without objec- spending by putting performance tion, the gentleman from New Jersey is metrics where they are needed most: Amendment No. 14 offered by Mr. KISSELL: At the end of the bill, add the following: recognized for 5 minutes. on the service and other contracts that There was no objection. make up the majority of our defense TITLE V—OTHER MATTERS SEC. 501. CLOTHING ALLOWANCE REQUIREMENT. Mr. ANDREWS. Mr. Chairman, I budget. commend the gentlemen from North I urge my colleagues to support my The Comptroller General shall conduct a study of the items purchased under section Carolina and from Maine for offering amendment and to support the under- 418 of title 37, United States Code, to deter- the amendment and support it. lying bill. mine if there is sufficient domestic produc- The general rule under the law is I yield back the balance of my time. tion of such items to adequately supply that the Defense Department must buy Mr. ANDREWS. Mr. Chairman, I rise members of the Armed Forces and shall goods and services made in the United to claim the time in opposition to the transmit the results of such study to the States. There’s an exception to that amendment, although I do not oppose Secretary of Defense. Not later than 6 months after receiving the results of such rule which deals with vouchers, essen- it. tially, where if there’s a voucher given The Acting CHAIR. Without objec- study, the Secretary of Defense shall trans- mit to the Committees on Armed Services of to a servicemember to buy certain tion, the gentleman from New Jersey is the Senate and the House of Representatives goods, there’s an exception to that. recognized for 5 minutes. an evaluation on whether such items under b 1400 There was no objection. the study should be considered subject to Mr. ANDREWS. Mr. Chairman, I rise section 2533a of title 10, United States Code The gentlemen who are offering this in strong support of this amendment, (popularly known as the ‘‘Berry Amend- amendment are interested in finding which is almost as striking in its com- ment’’). out whether that exception could be mon sense as it is striking that there is The Acting CHAIR. Pursuant to accomplished in a way that would pro- any legal issue as to whether a canon House Resolution 1300, the gentleman tect the choice and quality for the should be done. There is such a legal from North Carolina (Mr. KISSELL) and servicemembers while promoting the issue, unfortunately, and the gentle- a Member opposed each will control 5 purchase of American goods and serv- woman’s amendment clears that legal minutes. ices. I think that inquiring into that is issue up. The Chair recognizes the gentleman entirely appropriate. Here is the situation her amendment from North Carolina. At this time I would like to yield to contemplates: The Defense Department Mr. KISSELL. Mr. Chairman, I yield my friend, the ranking member, the lets a contract to a vendor. The vendor myself such time as I may consume. gentleman from Texas (Mr. CONAWAY), is performing the contract. Because of Mr. Chairman, as a member of the for his comments on this. a new efficiency or a drop in the price House Armed Services Committee, I Mr. CONAWAY. I appreciate that. I of a material, let’s say that the price of would like to thank my colleagues and also tentatively support the amend- food or gasoline that the vendor is our chairman, IKE SKELTON, for bring- ment—certainly, the spirit of the Berry using drops dramatically, the vendor ing this much-needed legislation to the amendment—as well. But, as drafted, offers to continue the contract at a floor. I would also like to thank my the GAO study, I think, will be very

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00041 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.043 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2980 CONGRESSIONAL RECORD — HOUSE April 28, 2010 difficult to implement. Servicemem- tleman from North Carolina (Mr. Under current law, the DOD con- bers are not required to keep records of KISSELL). tracting officer—could be a GS–8, GS– the items that they purchase with The amendment was agreed to. 9—has no authority, no guidance from their clothing allowance; nor are they AMENDMENT NO. 15 OFFERED BY MR. GRAYSON this institution to determine how required to set aside these dollars in a The Acting CHAIR. It is now in order much should be considered for cost or teacup to purchase uniforms only. So to consider amendment No. 15 printed price. Rather, the contracting officer the GAO may not be able to determine in House Report 111–467. on his or her own volition establishes what servicemembers bought with Mr. GRAYSON. Mr. Chairman, I have an evaluation scheme before each pro- their clothing allowance, let alone an amendment at the desk. curement, telling the offerers how whether those items were produced do- The Acting CHAIR. The Clerk will their proposal will be evaluated. Cur- mestically. designate the amendment. rent law permits DOD to announce an If the sponsor will allow us to revise The text of the amendment is as fol- evaluation scheme that would consider the amendment in conference to spe- lows: price or cost as only 1 percent of the cifically evaluate the sufficiency of the Amendment No. 15 offered by Mr. GRAYSON: evaluation and other more subjective At the end of the bill add the following new domestic supply of military uniforms, section: factors as 99 percent of the evaluation then I can certainly support that. But SEC. 501. REQUIREMENT THAT COST OR PRICE scheme. In practice, price or cost fre- I support it with some reservations TO THE FEDERAL GOVERNMENT BE quently is weighed as only 25 percent that the study as drafted specifically GIVEN AT LEAST EQUAL IMPOR- or 33 percent of the evaluation scheme; under this rule would be less than opti- TANCE AS TECHNICAL OR OTHER and other, more subjective, factors re- CRITERIA IN EVALUATING COMPETI- mal. And if the sponsor would allow us TIVE PROPOSALS FOR DEFENSE main in the balance. to work on it in conference, I would CONTRACTS. The resulting waste is twofold. First, support it. (a) REQUIREMENT.—Subparagraph (A) of DOD frequently rejects the low-cost Mr. ANDREWS. Mr. Chairman, we section 2305(a)(3) of title 10, United States proposal because its own evaluation look forward to reviewing the results Code, is amended by striking ‘‘proposals; scheme dictates that it does so. This of the GAO study so we can work with and’’ at the end of clause (ii) and all that fol- alone costs the taxpayers untold bil- all the gentlemen to achieve the objec- lows through the end of the subparagraph and inserting the following: ‘‘proposals and lions of dollars. Secondly, defense con- tive they have set forth. that must be assigned importance at least tractors who know how to build a bet- I reserve the balance of my time. equal to all evaluation factors other than ter mousetrap that could actually save Mr. KISSELL. Mr. Chairman, I would cost or price when combined.’’. DOD substantial amounts of money like to yield 2 minutes to my friend (b) WAIVER.—Section 2305(a)(3) of such title don’t even bother to frame their pro- from Maine (Mr. MICHAUD). is further amended by striking subparagraph posals that way because they know Mr. MICHAUD. I’d like to thank the (B) and inserting the following: that the evaluation will not turn on ‘‘(B) The requirement of subparagraph gentleman for yielding. I rise today in cost, but rather will turn on factors support of this amendment. This is a (A)(ii) relating to assigning at least equal importance to evaluation factors of cost or other than cost. So they don’t even bipartisan effort to ensure that our price may be waived by the head of the agen- submit such a proposal. troops are outfitted with American- cy. The authority to issue a waiver under Our amendment solves these prob- made goods as much as possible. Under this subparagraph may not be delegated.’’. lems by mandating that DOD procure- current policy, clothing items that sol- (c) REPORT.—Section 2305(a)(3) of such title ments weigh cost or price at 50 percent diers purchase with DOD-issued cash is further amended by adding at the end the of the evaluation scheme, or more, un- allowances are not subject to the Berry following new subparagraph: less the head of the agency decides oth- amendment. Our amendment asks GAO ‘‘(C) Not later than 180 days after the end of each fiscal year, the Secretary of Defense erwise. For large purchases of standard to determine whether U.S. companies shall submit to Congress, and post on a pub- commodities like fuels, hammers, et make enough of these cash-allowance licly available website of the Department of cetera, there’s no reason not to do this. items to meet the demands of our Defense, a report containing a list of each And for items that are mission critical, troops. DOD will report to Congress on waiver issued by the head of an agency under the head of the agency, under our GAO’s findings and indicate whether or subparagraph (B) during the preceding fiscal amendment, has the discretion to not they will extend the Berry amend- year.’’. weigh cost or price at less than 50 per- ment to any of these American-made The Acting CHAIR. Pursuant to cent, in fact, to weigh it any amount products. House Resolution 1300, the gentleman the head of the agency deems appro- This amendment supports United from Florida (Mr. GRAYSON) and a priate. States businesses. This amendment Member opposed each will control 5 In my 20 years in government con- protects and creates American jobs. minutes. tracts procurement before I was elected And this amendment makes sure that, The Chair recognizes the gentleman to serve in Congress, including my wherever possible, our troops are out- from Florida. time spent fighting war profiteers in fitted with goods made with pride in Mr. GRAYSON. I want to also express Iraq, I saw substantial overuse of sub- the U.S.A. my thanks to the chairman of the jective factors in DOD contractor I urge my colleagues to support this Armed Services Committee, the mem- awards at taxpayer expense. Our bipartisan amendment. bers of the committee and the staff, amendment is a commonsense solution Mr. KISSELL. Mr. Chairman, the and specifically and especially to Con- to that problem, which will allow all us strength of America is shown in many gressman ANDREWS and Congressman of to say at the end of the day that we ways—the strength of our military and CONAWAY, who brought this bill to the fought hard to fight against waste, its personnel and families that make floor today and allowed this to be con- fraud, and abuse in defense procure- up our service, but also shown in the sidered for amendments. I also want to ment. strength of a strong economy and as express my thanks to the members of I reserve the balance of my time. many Americans working as possible. the Rules Committee and their staff for Mr. ANDREWS. Mr. Chairman, I rise This amendment would help ensure finding this amendment in order for to claim time in opposition to the that as many Americans as possible are consideration today. amendment, although I do not oppose working to make the clothing articles This is an amendment, in short, that the amendment. that our great servicepeople use. I en- gives guidance to contracting officers The Acting CHAIR. Without objec- courage my colleagues to vote ‘‘yes’’ that they never had before in DOD con- tion, the gentleman from New Jersey is on this amendment. cerning the question of to what extent recognized for 5 minutes. I yield back the balance of my time. cost or price should be considered in There was no objection. Mr. ANDREWS. Mr. Chairman, we procurement. I ask for the support of Mr. ANDREWS. Mr. Chairman, I’d would urge a ‘‘yes’’ vote, and I yield the Grayson amendment to the IM- like to thank my friends from Florida, back the balance of my time in opposi- PROVE Act to give legislative guid- Mr. GRAYSON and Mr. HASTINGS, for of- tion. ance to the Defense Department con- fering this amendment. It makes emi- The Acting CHAIR. The question is cerning the need to emphasize price or nently good sense. It says this: if a pro- on the amendment offered by the gen- cost in defense procurement. curement officer decides to buy the

VerDate Mar 15 2010 04:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00042 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.069 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2981 product that isn’t the least expensive, seems like it would be appropriate to amendment addresses the concerns the a couple of rules apply. First of all, get that knowledge base from GAO be- gentleman raises. I think it provides price has to be at least equal to the fore going further with another re- sufficient flexibility. I commend the greatest factor that’s being used. It quirement at this time. gentleman for offering it. can’t be any less than equal. And if it So I don’t oppose the intent of the I urge a ‘‘yes’’ vote and yield back is less than equal, the procurement of- sponsor of the amendment. We are cer- the balance of my time. ficer has to explain why. tainly in agreement that we want to The Acting CHAIR. The question is Now this makes pretty good sense. I get the best value, but just believe it on the amendment offered by the gen- think most people would agree that it’s may be helpful to wait for GAO to com- tleman from Florida (Mr. GRAYSON). not always true that the least expen- plete its work. The amendment was agreed to. sive item is the best. But if you think Mr. GRAYSON. I yield myself the AMENDMENT NO. 16 OFFERED BY MR. HARE a more expensive item is the best, then balance of my time, and I thank my The Acting CHAIR. It is now in order you ought to explain why. I think most colleague for making these points. I’d to consider amendment No. 16 printed of us would want that in the way we like to respond to them briefly. in House Report 111–467. manage our household budgets, our With regard to the first point, I want Mr. HARE. Mr. Chairman, I have an businesses, our towns, our local school to make it clear that within the literal amendment at the desk. districts. wording of this amendment no agency The Acting CHAIR. The Clerk will Mr. GRAYSON, based upon his years of is ever required to choose the least- designate the amendment. experience in this field, has written an cost product. All that this amendment The text of the amendment is as fol- amendment that carries that idea for- says is that in the evaluation scheme, lows: ward. I think it’s very worthy. Again, I in order to encourage people who are Amendment No. 16 offered by Mr. HARE: think it strikes the right balance be- offerers to think about how to save At the end of title IV, add the following tween flexibility for the procurement money for DOD, we make the commit- new section: officer to make a decision that he or ment in general, overall, that cost or SEC. 407. SENSE OF CONGRESS REGARDING COM- she thinks is the right one, but jus- price will be considered at least as PLIANCE WITH THE BERRY AMEND- tification to the public as to why we’re much as all the other factors com- MENT, THE BUY AMERICAN ACT, AND LABOR STANDARDS OF THE UNITED not spending the least amount of bined. STATES. money on something that we’re buy- In addition to that, we allow the In order to create jobs, level the playing ing. I think most of our constituents head of the agency to suspend the rule field for domestic manufacturers, and would want us to presume that we at will, without any condition or limi- strengthen economic recovery, it is the sense should get the best price available; and tation in the statute. The head of the of Congress that the Department of Defense only if it can be demonstrated that the agency can determine that for any should— best price available is not the best item, including mission-critical items, (1) ensure full contractor and subcon- cost or price can be 40 percent, 30 per- tractor compliance with the Berry Amend- value available, should we make a dif- ment (10 U.S.C. 2533a) and the Buy American ferent decision. So I think this amend- cent, 10 percent, even 5 percent of the Act (41 U.S.C. 10a et seq.); and ment makes very, very good sense. I evaluation factors. (2) not procure products made by manufac- would urge its adoption. So I think that although the gentle- turers in the United States that violate I would now like to yield such time man’s point is well taken, that we labor standards as defined under the laws of as he may consume to my friend from should not ever bind the hands of the the United States. Pennsylvania (Mr. PLATTS). DOD when DOD needs to get items that The Acting CHAIR. Pursuant to Mr. PLATTS. I appreciate the gen- may not be the low cost item, this is House Resolution 1300, the gentleman tleman yielding. I certainly rise in an amendment that does not do that. from Illinois (Mr. HARE) and a Member agreement with the maker of the This amendment simply says that, in opposed each will control 5 minutes. amendment that we need to get the general, under ordinary circumstances, The Chair recognizes the gentleman best value for the American taxpayers particularly in buying volume com- from Illinois. when it comes to the acquisition of modities that are identical to each 1415 goods and services. In fact, the under- other, we should in fact make 50 per- b lying bill we’re discussing here today is cent of the consideration cost or price. Mr. HARE. Mr. Chair, I yield myself about achieving that exact goal—get- Now, I’ve seen procurements where, as much time as I may consume. ting that best value. for instance, a commodity like gaso- Let me begin by taking this oppor- I do want to express a concern, how- line is being bought by DOD and some- tunity to thank Chairman SKELTON and ever, that sometimes getting the best how they determine that two-thirds of Ranking Member MCKEON as well as value may mean paying more for a su- the evaluation factor should be some- Chairman ANDREWS and Ranking Mem- perior product or service, especially thing other than cost or price. Some- ber CONAWAY for their leadership on when it comes to the complex techno- times we waste billions of dollars on the underlying bill and for their com- logical requirements of the equipment account of decisions like that. mitment to our Nation’s Armed of our men and women in the American So I think that this is a rule that Forces. Armed Forces. There may be legiti- really needs to take place. I understand The amendment before us today is mate cases where the cost, the price of the gentleman’s point concerning the one of great importance that aims to a good or service, is less important study that’s ongoing; but, frankly, I ensure a level playing field for domes- than other factors. Probably a good ex- think that if we do this now, we’ll save tic manufacturers with the hope of ample of that is pretty recently the ac- money now. If we do this later, we’ll strengthening our economic recovery quisition of MRAPs and body armor save less money. I’d rather see the through the defense acquisition proc- that certainly have saved the lives of money saved now, particularly when ess. My amendment declares that it is our courageous troops. we have such great needs abroad and the sense of Congress that the Depart- A concern that I think we need to our defense budget is so great. I think ment of Defense should ensure full weigh here is just that this may be a that this simple rule, this common- compliance throughout the acquisition little premature, this specific amend- sense rule, will help to save billions al- process with the Berry Amendment and ment, because a similar amendment most immediately as soon as it’s im- the Buy American Act. Further, the was included in the 2010 National De- plemented. I thank the gentleman for amendment declares the sense of Con- fense Authorization Act. During the his comments. gress that the Department of Defense conference, a provision was added to I yield back the balance of my time. not procure products made by domestic that language that requires the Gov- Mr. ANDREWS. Mr. Chairman, I manufacturers that fail to comply with ernment Accountability Office to do a would urge a ‘‘yes’’ vote on the amend- the labor standards that are set by the study to determine how often it occurs ment. I do share the concerns of my laws established by Congress. that cost is not the overriding factor or friend from Pennsylvania. I believe Both the Buy American Act and the the primary factor. That study is due that the amendment that’s in front of Berry Amendment are intended to ben- back to us in October of this year. It us here, I think the language of the efit American industry and workers.

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00043 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.071 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2982 CONGRESSIONAL RECORD — HOUSE April 28, 2010 And at a time of high unemployment, I yield back the balance of my time. Edwards (TX) Latham Posey we must ensure compliance with these Ehlers LaTourette Price (GA) Mr. HARE. Once again, I just want to Ellison Latta Price (NC) important laws to ensure that DOD thank Chairman SKELTON for his won- Ellsworth Lee (CA) Putnam procurement benefits American fami- derful work on this bill. Emerson Lee (NY) Quigley lies in every corner of this Nation With that, Mr. Chair, I yield back the Engel Levin Radanovich Eshoo Lewis (CA) Rahall whenever possible. balance of my time. Etheridge Lewis (GA) Rehberg I think we can all agree here that we The Acting CHAIR. The question is Farr Linder Reichert want the best equipment and items on the amendment offered by the gen- Fattah Lipinski Reyes procured for our Armed Forces, and I tleman from Illinois (Mr. HARE). Filner LoBiondo Richardson think we can all agree that we want to Flake Loebsack Rodriguez The amendment was agreed to. Fleming Lofgren, Zoe Roe (TN) ensure that these acquisitions adhere ANNOUNCEMENT BY THE ACTING CHAIR Forbes Lowey Rogers (AL) to the laws and labor standards of the Fortenberry Lucas Rogers (KY) The Acting CHAIR. Pursuant to land. My amendment simply expresses Foster Luetkemeyer Rogers (MI) clause 6 of rule XVIII, proceedings will ´ and reaffirms congressional intent and Foxx Lujan Rohrabacher now resume on those amendments Frank (MA) Lummis Rooney aims to aid the economic recovery that printed in House Report 111–467 on Franks (AZ) Lungren, Daniel Ros-Lehtinen our Nation so desperately needs. I urge Frelinghuysen E. Roskam which further proceedings were post- my colleagues to join me in supporting Gallegly Lynch Ross poned, in the following order: this amendment. Garamendi Mack Rothman (NJ) I reserve the balance of my time. Amendment No. 4 by Mr. HALL of Garrett (NJ) Maffei Roybal-Allard New York. Gerlach Maloney Royce Mr. SKELTON. Mr. Chairman, I rise Giffords Manzullo Ruppersberger in opposition to the amendment, but I Amendment No. 11 by Mr. CONNOLLY Gingrey (GA) Marchant Rush do not oppose it. of Virginia. Gonzalez Markey (CO) Ryan (OH) The Acting CHAIR. Without objec- The Chair will reduce to 5 minutes Goodlatte Markey (MA) Ryan (WI) Granger Marshall Sablan tion, the gentleman from Missouri is the time for any electronic vote after Graves Matheson Salazar recognized for 5 minutes. the first vote in this series. Grayson Matsui Sa´ nchez, Linda There was no objection. AMENDMENT NO. 4 OFFERED BY MR. HALL OF Green, Al McCarthy (CA) T. McCarthy (NY) Sanchez, Loretta Mr. SKELTON. The amendment be- NEW YORK Green, Gene fore us is a sense of Congress amend- Griffith McCaul Sarbanes The Acting CHAIR. The unfinished Grijalva McClintock Scalise ment. In essence it says, we should fol- business is the demand for a recorded Guthrie McCollum Schakowsky low the law. It reaffirms Congress’ sup- vote on the amendment offered by the Gutierrez McCotter Schauer port for the Buy American Act and Hall (NY) McDermott Schiff gentleman from New York (Mr. HALL) Hall (TX) McGovern Schmidt other United States labor laws, and on which further proceedings were Halvorson McHenry Schock Congress has acted in recent years to postponed and on which the ayes pre- Hare McIntyre Schrader make contracting officers aware of vailed by voice vote. Harper McKeon Schwartz firms seeking contracts that have en- Hastings (FL) McMahon Scott (GA) The Clerk will redesignate the Hastings (WA) McMorris Scott (VA) gaged in certain violations of the law. amendment. Heinrich Rodgers Sensenbrenner This is a ‘‘wake up and pay attention The Clerk redesignated the amend- Heller McNerney Sessions to the law’’ sense of Congress. ment. Hensarling Meek (FL) Sestak Today, Mr. Chairman, we have done Herger Melancon Shadegg more than adopt 16 amendments and RECORDED VOTE Herseth Sandlin Mica Shea-Porter The Acting CHAIR. A recorded vote Higgins Michaud Sherman had an excellent general debate on this Hill Miller (FL) Shimkus bill. We have exhibited in a very sub- has been demanded. Himes Miller (MI) Shuler stantial and substantive piece of legis- A recorded vote was ordered. Hinchey Miller (NC) Shuster lation that Democrats and Republicans The vote was taken by electronic de- Hinojosa Miller, Gary Simpson vice, and there were—ayes 416, noes 0, Hirono Miller, George Sires can work together, that, in a bipar- Hodes Minnick Skelton tisan effort, we can make things better not voting 20, as follows: Holden Mitchell Slaughter for the young men and women in uni- [Roll No. 227] Holt Mollohan Smith (NE) Honda Moore (KS) Smith (NJ) form, that we can save the taxpayer AYES—416 Hoyer Moore (WI) Smith (TX) dollars, and over a period of time, it Ackerman Boucher Clay Hunter Moran (KS) Smith (WA) will be in the billions of dollars if this Aderholt Boustany Cleaver Inglis Moran (VA) Snyder legislation becomes law. And we cer- Adler (NJ) Boyd Clyburn Inslee Murphy (CT) Souder Akin Brady (PA) Coble Israel Murphy (NY) Space tainly hope that it will not only pass Alexander Brady (TX) Coffman (CO) Issa Murphy, Patrick Speier here with a substantial vote but also Altmire Braley (IA) Cohen Jackson (IL) Murphy, Tim Spratt pass the United States Senate with a Andrews Bright Cole Jackson Lee Myrick Stark substantial vote, because it is a hall- Arcuri Broun (GA) Conaway (TX) Nadler (NY) Stearns Austria Brown (SC) Connolly (VA) Jenkins Napolitano Stupak mark piece of real legislation. It Baca Brown, Corrine Conyers Johnson (GA) Neal (MA) Sullivan should have been done before, but it Bachmann Brown-Waite, Cooper Johnson (IL) Neugebauer Sutton wasn’t. And here we are, taking up leg- Bachus Ginny Costa Johnson, E. B. Norton Taylor Baird Buchanan Costello Johnson, Sam Nunes Terry islation that will be good for the young Baldwin Burgess Courtney Jones Nye Thompson (CA) men and young women in uniform and Barrow Burton (IN) Crenshaw Jordan (OH) Oberstar Thompson (MS) save the American taxpayer dollars. Bartlett Butterfield Crowley Kagen Obey Thompson (PA) I am really proud of the committee. I Barton (TX) Buyer Cuellar Kanjorski Olson Tiahrt Bean Calvert Cummings Kaptur Olver Tiberi am really proud of BUCK MCKEON, the Becerra Camp Dahlkemper Kennedy Ortiz Tierney ranking member, for his excellent co- Berkley Campbell Davis (CA) Kildee Owens Titus operation and work; ROB ANDREWS, the Berman Cantor Davis (IL) Kilpatrick (MI) Pallone Tonko chairman of the panel that I appointed; Berry Cao Davis (KY) Kilroy Pascrell Towns Biggert Capito Davis (TN) Kind Pastor (AZ) Tsongas MIKE CONAWAY, for the excellent work Bilbray Capps DeFazio King (IA) Paul Turner that he did, in particular, the sections Bilirakis Capuano Delahunt King (NY) Paulsen Upton relating to the required audits that Bishop (GA) Cardoza DeLauro Kingston Payne Van Hollen Bishop (NY) Carnahan Dent Kirk Pence Vela´ zquez will be part of this legislation. We have Bishop (UT) Carney Deutch Kirkpatrick (AZ) Perlmutter Visclosky just done marvelous work. I could not Blackburn Carson (IN) Diaz-Balart, L. Kissell Perriello Walden be prouder of the Armed Services Com- Blumenauer Carter Diaz-Balart, M. Klein (FL) Peters Walz mittee and those who worked on it as Blunt Cassidy Dicks Kline (MN) Peterson Wasserman Boccieri Castle Dingell Kosmas Petri Schultz well as those who offered the very im- Boehner Castor (FL) Doggett Kratovil Pierluisi Watson portant amendments. Bonner Chaffetz Donnelly (IN) Kucinich Pingree (ME) Watt With that, Mr. Chairman, I am very Bono Mack Chandler Doyle Lamborn Pitts Waxman grateful for the work that has been Boozman Childers Dreier Lance Platts Weiner Bordallo Christensen Driehaus Langevin Poe (TX) Welch done, and I do urge a ‘‘yes’’ vote on this Boren Chu Duncan Larsen (WA) Polis (CO) Westmoreland particular amendment. Boswell Clarke Edwards (MD) Larson (CT) Pomeroy Whitfield

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00044 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.075 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2983 Wilson (OH) Woolsey Young (AK) Grayson Marchant Ros-Lehtinen Fudge Kline (MN) Teague Wilson (SC) Wu Young (FL) Green, Al Markey (CO) Roskam Harman Miller (NC) Thornberry Wittman Yarmuth Green, Gene Markey (MA) Ross Hoekstra Rangel Wamp Griffith Marshall Rothman (NJ) Johnson (GA) Tanner NOT VOTING—20 Grijalva Matheson Roybal-Allard ANNOUNCEMENT BY THE ACTING CHAIR Barrett (SC) Gohmert Tanner Guthrie Matsui Royce Culberson Gordon (TN) Teague Gutierrez McCarthy (CA) Ruppersberger The Acting CHAIR (during the vote). Davis (AL) Harman Thornberry Hall (NY) McCarthy (NY) Rush There are 2 minutes remaining in this DeGette Hoekstra Wamp Hall (TX) McCaul Ryan (OH) vote. Faleomavaega Meeks (NY) Waters Halvorson McClintock Ryan (WI) Fallin Rangel Wolf Hare McCollum Sablan b 1458 Fudge Serrano Harper McCotter Salazar Hastings (FL) McDermott Sa´ nchez, Linda So the amendment was agreed to. b 1448 Hastings (WA) McGovern T. The result of the vote was announced Heinrich McHenry Sanchez, Loretta as above recorded. So the amendment was agreed to. Heller McIntyre Sarbanes The Acting CHAIR. The question is The result of the vote was announced Hensarling McKeon Scalise Herger McMahon Schakowsky on the committee amendment in the as above recorded. Herseth Sandlin McMorris Schauer nature of a substitute, as amended. AMENDMENT NO. 11 OFFERED BY MR. CONNOLLY Higgins Rodgers Schiff The committee amendment in the OF VIRGINIA Hill McNerney Schmidt Himes Meek (FL) Schock nature of a substitute, as amended, was The Acting CHAIR (Mr. SALAZAR). Hinchey Meeks (NY) Schrader agreed to. The unfinished business is the demand Hinojosa Melancon Schwartz The Acting CHAIR. Under the rule, for a recorded vote on the amendment Hirono Mica Scott (GA) Hodes Michaud Scott (VA) the Committee rises. offered by the gentleman from Virginia Holden Miller (FL) Sensenbrenner Accordingly, the Committee rose; (Mr. CONNOLLY) on which further pro- Holt Miller (MI) Serrano and the Speaker pro tempore (Mr. Honda Miller, Gary Sessions ceedings were postponed and on which JACKSON of Illinois) having assumed the ayes prevailed by voice vote. Hoyer Miller, George Sestak Hunter Minnick Shadegg the chair, Mr. SALAZAR, Acting Chair The Clerk will redesignate the Inglis Mitchell Shea-Porter of the Committee of the Whole House amendment. Inslee Mollohan Sherman on the State of the Union, reported The Clerk redesignated the amend- Israel Moore (KS) Shimkus Issa Moore (WI) Shuler that that Committee, having had under ment. Jackson (IL) Moran (KS) Shuster consideration the bill (H.R. 5013) to RECORDED VOTE Jackson Lee Moran (VA) Simpson amend title 10, United States Code, to The Acting CHAIR. A recorded vote (TX) Murphy (CT) Sires Jenkins Murphy (NY) Skelton provide for performance management has been demanded. Johnson (IL) Murphy, Patrick Slaughter of the defense acquisition system, and A recorded vote was ordered. Johnson, E. B. Murphy, Tim Smith (NE) for other purposes, pursuant to House The Acting CHAIR. This is a 5- Johnson, Sam Myrick Smith (NJ) Resolution 1300, he reported the bill Jones Nadler (NY) Smith (TX) minute vote. Jordan (OH) Napolitano Smith (WA) back to the House with an amendment The vote was taken by electronic de- Kagen Neal (MA) Snyder adopted in the Committee of the vice, and there were—ayes 417, noes 2, Kanjorski Neugebauer Souder Whole. not voting 17, as follows: Kaptur Norton Space The SPEAKER pro tempore. Under Kennedy Nunes Speier [Roll No. 228] Kildee Nye Spratt the rule, the previous question is or- AYES—417 Kilpatrick (MI) Oberstar Stark dered. Kilroy Obey Stearns The question is on the amendment. Ackerman Brown-Waite, Davis (KY) Kind Olson Stupak Aderholt Ginny Davis (TN) King (IA) Olver Sullivan The amendment was agreed to. Adler (NJ) Buchanan DeFazio King (NY) Ortiz Sutton The SPEAKER pro tempore. The Akin Burgess Delahunt Kingston Owens Taylor question is on the engrossment and Alexander Burton (IN) DeLauro Kirk Pallone Terry third reading of the bill. Altmire Butterfield Dent Kirkpatrick (AZ) Pascrell Thompson (CA) Andrews Buyer Deutch Kissell Pastor (AZ) Thompson (MS) The bill was ordered to be engrossed Arcuri Calvert Diaz-Balart, L. Klein (FL) Paul Thompson (PA) and read a third time, and was read the Austria Camp Diaz-Balart, M. Kosmas Paulsen Tiahrt third time. Baca Cantor Dicks Kratovil Payne Tiberi Bachmann Cao Dingell Kucinich Pence Tierney MOTION TO RECOMMIT Bachus Capito Doggett Lamborn Perlmutter Titus Mr. BUYER. Mr. Speaker, I have a Baird Capps Donnelly (IN) Lance Perriello Tonko Baldwin Capuano Doyle motion to recommit at the desk. Langevin Peters Towns The SPEAKER pro tempore. Is the Barrow Cardoza Dreier Larsen (WA) Peterson Tsongas Bartlett Carnahan Driehaus Larson (CT) Petri Turner gentleman opposed to the bill? Barton (TX) Carney Duncan Latham Pierluisi Upton Mr. BUYER. In its present form, I am Bean Carson (IN) Edwards (MD) LaTourette Pingree (ME) Van Hollen opposed to the bill. Becerra Carter Edwards (TX) Latta Pitts Vela´ zquez Berkley Cassidy Ehlers Lee (CA) Platts Visclosky The SPEAKER pro tempore. The Berman Castle Ellison Lee (NY) Poe (TX) Walden Clerk will report the motion to recom- Berry Castor (FL) Ellsworth Levin Polis (CO) Walz mit. Biggert Chaffetz Emerson Lewis (CA) Pomeroy Wasserman The Clerk read as follows: Bilbray Chandler Engel Lewis (GA) Posey Schultz Bilirakis Childers Eshoo Linder Price (GA) Waters Mr. Buyer moves to recommit the bill H.R. Bishop (GA) Christensen Etheridge Lipinski Price (NC) Watson 5013 to the Committee on Armed Services Bishop (NY) Chu Farr LoBiondo Putnam Watt with instructions to report the same back to Bishop (UT) Clarke Fattah Loebsack Quigley Waxman the House forthwith with the following Blackburn Clay Filner Lofgren, Zoe Radanovich Weiner Blumenauer Cleaver Fleming amendment: Lowey Rahall Welch At the end of title III, add the following Blunt Clyburn Forbes Lucas Rehberg Westmoreland Boccieri Coble Fortenberry Luetkemeyer Reichert Whitfield new section: Boehner Coffman (CO) Foster Luja´ n Reyes Wilson (OH) SEC. 304. DISCLOSURE AND TRACEABILITY OF Bonner Cohen Foxx Lummis Richardson Wilson (SC) THE COST OF DEPARTMENT OF DE- Bono Mack Cole Frank (MA) Lungren, Daniel Rodriguez Wittman FENSE HEALTH CARE CONTRACTS. Boozman Conaway Franks (AZ) E. Roe (TN) Wolf (a) DISCLOSURE REQUIREMENT.—The Sec- Bordallo Connolly (VA) Frelinghuysen Lynch Rogers (AL) Woolsey Boren Conyers Gallegly retary of Defense shall require— Mack Rogers (KY) Wu (1) an offeror that submits a bid or pro- Boswell Cooper Garamendi Maffei Rogers (MI) Yarmuth Boucher Costa Garrett (NJ) Maloney Rohrabacher Young (AK) posal in response to an invitation for bids or Boustany Costello Gerlach Manzullo Rooney Young (FL) a request for proposals issued by a compo- Boyd Courtney Giffords nent of the Department of Defense for a Brady (PA) Crenshaw Gingrey (GA) NOES—2 health care contract to submit with the bid Brady (TX) Crowley Gohmert or proposal a disclosure of the additional Braley (IA) Cuellar Gonzalez Campbell Flake Bright Cummings Goodlatte cost, if any, contained in such bid or pro- Broun (GA) Dahlkemper Gordon (TN) NOT VOTING—17 posal associated with compliance with the Brown (SC) Davis (CA) Granger Barrett (SC) Davis (AL) Faleomavaega Patient Protection and Affordable Care Act Brown, Corrine Davis (IL) Graves Culberson DeGette Fallin (Public Law 111–148) and the Health Care and

VerDate Mar 15 2010 04:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00045 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.040 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2984 CONGRESSIONAL RECORD — HOUSE April 28, 2010 Education Reconciliation Act of 2010 (Public budget period, the cost estimates that sumers in the form of higher drug Law 111–152); and were shown in the memorandum do not prices.’’ That means a pass-through to (2) a contractor for a health care contract represent a full 10-year cost of the leg- DOD. We need to know and to under- awarded following the date of the enactment islation. stand the impact of those increased of this Act to disclose on an annual basis the fees upon us. additional cost, if any, incurred for such con- So, even though they are projecting tract associated with compliance with the that it is going to be $311 billion, please Section 9011 of the President’s health Patient Protection and Affordable Care Act understand that this is really not a care law already requires the Depart- (Public Law 111–148) and the Health Care and true 10-year time frame. This is why I ment of Veterans Affairs to conduct a Education Reconciliation Act of 2010 (Public want to bring this to everyone’s atten- study of the impact of the increased Law 111–152). tion. costs on veterans’ health care which (b) REPORT.— Please, Members, look at this report. are imposed by the new law. This in- (1) REQUIREMENT.—Not later than April 1, Please, look at the report. As policy- cludes reporting on the costs to the VA 2011, and each April 1st thereafter until April makers, all of us who have responsibil- of any fees assessed on brand-name pre- 1, 2016, the Secretary of Defense shall submit scription drugs and medical device to the Committee on Armed Services of the ities for health initiatives need to un- derstand what the impacts will be upon manufacturers. Senate and the Committee on Armed Serv- It seems only reasonable, if we sup- ices of the House of Representatives a de- our areas of responsibility. Of the Fed- tailed report on the additional cost to the eral expenditure for only the 6-year ported that provision for the VA, as Department of Defense associated with com- time frame, it is going to be about $251 many of my colleagues on the other pliance with the Patient Protection and Af- billion. side of the aisle did, that we should do fordable Care Act (Public Law 111–148) and As you know, the Department of De- the very same thing with DOD. That is the Health Care and Education Reconcili- fense is one of the largest procurers of what I am asking in this motion to re- ation Act of 2010 (Public Law 111–152). health care goods and services in the commit. The Pentagon is slated to (2) MATTERS COVERED.—The report required spend $56 billion on the next procure- by paragraph (1) shall include— country. Now, I’m not even talking about VA. We’re only going to focus for ment round of TRICARE contracts. (A) the projected costs of compliance for This amendment simply asks for the the moment here on DOD because of ju- all health care contracts awarded during the DOD to identify through their acquisi- preceding year, as disclosed in a bid or pro- risdictional matters. By caring for our tion process any additional costs as a posal in accordance with subsection (a)(1); wounded warriors and their families, result of the President’s new health (B) for all other health care contracts, the the Pentagon strives to support our incurred cost of compliance for the preceding care law and to report that to Con- brave wounded soldiers, sailors, air- gress. We are asking for transparency. year, as disclosed in accordance with sub- men, and marines along the road to re- section (a)(2); and I urge a ‘‘yes’’ vote on the motion to (C) any additional costs to the Department covery. This support not only includes recommit, and I yield back the balance of Defense necessary to comply with such medical care for injured troops but also of my time. Acts. for our active duty military, their fam- ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE (c) HEALTH CARE CONTRACT DEFINED.—In ilies, and the retirees as well. The SPEAKER pro tempore. Mem- this section, the term ‘‘health care contract’’ In order to provide that level of care, bers are reminded not to traffic the means a contract in an amount greater than the DOD purchases from a network of the simplified acquisition threshold for the well when other Members are speaking. managed care support organizations, Mr. SKELTON. Mr. Speaker, I claim acquisition of any of the following: from health care professionals, manu- (1) Medical supplies. time in opposition, though I do not op- (2) Health care services and administra- facturers, and from information tech- pose the motion. tion, including the services of medical per- nology providers. What CMS has made The SPEAKER pro tempore. The gen- sonnel. clear to all of us in this report is that tleman from Missouri is recognized for (3) Durable medical equipment. this network is heavily impacted by 5 minutes. (4) Pharmaceuticals. the new health care law. Mr. SKELTON. I yield to the gen- (5) Health care-related information tech- Let me remind my colleagues that tleman from New Jersey (Mr. AN- nology. CMS is not a partisan group. CMS, for- DREWS). Mr. BUYER (during the reading). Mr. merly known as the Health Care Fi- (Mr. ANDREWS asked and was given Speaker, I ask unanimous consent to nancing Administration, or HCFA, is permission to revise and extend his re- waive the reading of the bill. very much part of President Obama’s marks.) The SPEAKER pro tempore. Is there administration. So, if CMS estimates Mr. ANDREWS. Mr. Speaker, I would objection to the request of the gen- that there are greater costs, I am sure urge Members to vote ‘‘yes’’ on this tleman from Indiana? that these are likely to be conservative motion to recommit because the lan- Mr. SKELTON. Mr. Speaker, I object. estimates, and greater costs are not guage of the recommit does what the The SPEAKER pro tempore. Objec- something the Pentagon is prepared to gentleman’s argument doesn’t do. tion is heard. absorb. As many of you are aware, the The language of this argument says The Clerk will read. Department’s overall expenditures for we should have full, accurate trans- The Clerk continued to read. health care are rising rapidly. Sec- parency about the cost of the new health care bill as it applies to defense The SPEAKER pro tempore. The gen- retary Gates testified in the fall that contracts. In other words, we ought to tleman from Indiana is recognized for 5 the increased costs are ‘‘beginning to know the facts. We agree with that. minutes. eat us alive.’’ With all of the respect of the gentle- Mr. BUYER. Last Thursday’s report So, if there are direct or secondary man’s argument, the facts were kind of by the Department of Health and effects of the President’s health care Human Services has now been delivered missing. Here is what the facts are: program, the only way to cover those As to the report that he references to all of our offices. In particular, a re- costs is to raise the premiums to bene- from CMS, I would take due note of the port by the Centers for Medicare & ficiaries, to families, and to retirees or fact that the ‘‘M’’ in CMS means Medicaid Services has confirmed that to eat further into DOD’s ability to ‘‘Medicare.’’ Here is what the report President Obama’s new health care law support the needs of our men and said: will increase costs for taxpayers and women in uniform. This is not what we Before the President signed the patients. The CMS has estimated that want to do. This is why we must under- health care law, the Medicare Trust the new law will increase health care stand the impact of the President’s Fund was due to run out of money in spending in this country by $311 bil- new health care law on DOD. We know 2017. Because the President signed the lion. Now, that $311 billion figure is on that the health care law includes new health care law, the Medicare Trust page 4, but all Members should note, on fees on manufacturers of brand-name Fund will live for at least 12 more page 2, that they are very up front prescription drugs. We sell to the Fed- years. about this. eral health care programs, including The fact is that the report said that On page 2, it reads: Because of the the Department of Defense. future forecasts of health care costs transition effects and the fact that CMS stated in last Thursday’s report: are, to quote the report: only a pre- most coverage provisions are going to ‘‘We anticipate these fees would gen- diction, difficult to ascertain, subject be in effect for 6 of the 10 years of the erally be passed through to health con- to interpretation.

VerDate Mar 15 2010 02:26 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00046 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.041 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2985 Well, here are some interpretations Culberson Kagen Obey Thompson (PA) Vela´ zquez Westmoreland that the American public are beginning Cummings Kanjorski Olson Thornberry Visclosky Whitfield Dahlkemper Kaptur Olver Tiahrt Walden Wilson (OH) to see: When sons and daughters under Davis (CA) Kennedy Ortiz Tiberi Walz Wilson (SC) the age of 26 years old can be covered Davis (IL) Kildee Owens Tierney Wasserman Wittman on their parents’ policies, the Amer- Davis (KY) Kilpatrick (MI) Pallone Titus Schultz Wolf Tonko Waters ican people support that. When people Davis (TN) Kilroy Pastor (AZ) Woolsey DeFazio Kind Paul Towns Watson Wu Tsongas Watt cannot be turned away from buying in- Delahunt King (IA) Paulsen Yarmuth Turner Waxman surance or cannot have their premiums DeLauro King (NY) Payne Young (AK) Dent Kingston Pence Upton Weiner raised because they had breast cancer Young (FL) Deutch Kirk Perlmutter Van Hollen Welch or asthma, the American people sup- Diaz-Balart, L. Kirkpatrick (AZ) Perriello NOES—1 port that. When an insurance company Diaz-Balart, M. Kissell Peters cannot cancel people’s policies when Dicks Klein (FL) Peterson Pascrell they’re on the way to the operating Dingell Kline (MN) Petri NOT VOTING—10 Doggett Kosmas Pingree (ME) rooms after they’ve paid premiums for Donnelly (IN) Kratovil Pitts Barrett (SC) Fallin Teague years, the American people support Doyle Kucinich Platts Davis (AL) Fudge Wamp that. Dreier Lamborn Poe (TX) DeGette Harman Driehaus Lance Polis (CO) Ehlers Hoekstra We embrace and support the idea of Duncan Langevin Pomeroy learning the facts about the health ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Edwards (MD) Larsen (WA) Posey The SPEAKER pro tempore (Mr. care bill. That’s what the amendment Edwards (TX) Larson (CT) Price (GA) MORAN of Virginia) (during the vote). says. We support the idea of speaking Ellison Latham Price (NC) Ellsworth LaTourette Putnam There are 2 minutes remaining in this the truth about the health care bill. Emerson Latta Quigley vote. That’s what all Members of the House Engel Lee (CA) Radanovich should do. That’s what the American Eshoo Lee (NY) Rahall b 1533 people are entitled to do. Etheridge Levin Rangel Farr Lewis (CA) Rehberg Mr. DICKS changed his vote from Vote ‘‘yes’’ on the motion to recom- Fattah Lewis (GA) Reichert ‘‘no’’ to ‘‘aye.’’ mit, and vote ‘‘yes’’ on the underlying Filner Linder Reyes So the motion to recommit was bipartisan bill. Flake Lipinski Richardson agreed to. Fleming LoBiondo Rodriguez The result of the vote was announced Mr. SKELTON. I yield back the bal- Forbes Loebsack Roe (TN) ance of my time. Fortenberry Lofgren, Zoe Rogers (AL) as above recorded. The SPEAKER pro tempore. Without Foster Lowey Rogers (KY) Stated for: objection, the previous question is or- Foxx Lucas Rogers (MI) Mr. EHLERS. Mr. Speaker, on rollcall No. Frank (MA) Luetkemeyer Rohrabacher 229 I was detained in the Attending Physi- dered on the motion to recommit. ´ Franks (AZ) Lujan Rooney cian’s Office, and arrived on the House floor There was no objection. Frelinghuysen Lummis Ros-Lehtinen too late to be recorded on this rollcall. Had I The SPEAKER pro tempore. The Gallegly Lungren, Daniel Roskam Garamendi E. Ross been present, I would have voted ‘‘yes.’’ question is on the motion to recommit. Garrett (NJ) Lynch Rothman (NJ) Mr. SKELTON. Mr. Speaker, pursu- The question was taken; and the Gerlach Mack Roybal-Allard ant to the instructions of the House in Speaker pro tempore announced that Giffords Maffei Royce Gingrey (GA) Maloney Ruppersberger the motion to recommit, I report the the ayes appeared to have it. Gohmert Manzullo Rush bill, H.R. 5013, back to the House with RECORDED VOTE Gonzalez Marchant Ryan (OH) an amendment. Mr. BUYER. Mr. Speaker, I demand a Goodlatte Markey (CO) Ryan (WI) The SPEAKER pro tempore. The Gordon (TN) Markey (MA) Salazar Clerk will report the amendment. recorded vote. Granger Marshall Sa´ nchez, Linda A recorded vote was ordered. Graves Matheson T. The Clerk read as follows: Grayson Matsui Sanchez, Loretta Amendment offered by Mr. SKELTON: The SPEAKER pro tempore. Pursu- Green, Al McCarthy (CA) Sarbanes At the end of title III, add the following ant to clause 9 of rule XX, the Chair Green, Gene McCarthy (NY) Scalise new section: will reduce to 5 minutes the minimum Griffith McCaul Schakowsky SEC. 304. DISCLOSURE AND TRACEABILITY OF time for any electronic vote on the Grijalva McClintock Schauer THE COST OF DEPARTMENT OF DE- Guthrie McCollum Schiff FENSE HEALTH CARE CONTRACTS. question of passage. Gutierrez McCotter Schmidt (a) DISCLOSURE REQUIREMENT.—The Sec- The vote was taken by electronic de- Hall (NY) McDermott Schock retary of Defense shall require— vice, and there were—ayes 419, noes 1, Hall (TX) McGovern Schrader Halvorson McHenry Schwartz (1) an offeror that submits a bid or pro- not voting 10, as follows: Hare McIntyre Scott (GA) posal in response to an invitation for bids or [Roll No. 229] Harper McKeon Scott (VA) a request for proposals issued by a compo- Hastings (FL) McMahon Sensenbrenner AYES—419 nent of the Department of Defense for a Hastings (WA) McMorris Serrano health care contract to submit with the bid Ackerman Boccieri Capuano Heinrich Rodgers Sessions or proposal a disclosure of the additional Aderholt Boehner Cardoza Heller McNerney Sestak cost, if any, contained in such bid or pro- Adler (NJ) Bonner Carnahan Hensarling Meek (FL) Shadegg Akin Bono Mack Carney Herger Meeks (NY) Shea-Porter posal associated with compliance with the Alexander Boozman Carson (IN) Herseth Sandlin Melancon Sherman Patient Protection and Affordable Care Act Altmire Boren Carter Higgins Mica Shimkus (Public Law 111–148) and the Health Care and Andrews Boswell Cassidy Hill Michaud Shuler Education Reconciliation Act of 2010 (Public Arcuri Boucher Castle Himes Miller (FL) Shuster Law 111–152); and Austria Boustany Castor (FL) Hinchey Miller (MI) Simpson (2) a contractor for a health care contract Baca Boyd Chaffetz Hinojosa Miller (NC) Sires awarded following the date of the enactment Bachmann Brady (PA) Chandler Hirono Miller, Gary Skelton Bachus Brady (TX) Childers Hodes Miller, George Slaughter of this Act to disclose on an annual basis the Baird Braley (IA) Chu Holden Minnick Smith (NE) additional cost, if any, incurred for such con- Baldwin Bright Clarke Holt Mitchell Smith (NJ) tract associated with compliance with the Barrow Broun (GA) Clay Honda Mollohan Smith (TX) Patient Protection and Affordable Care Act Bartlett Brown (SC) Cleaver Hoyer Moore (KS) Smith (WA) (Public Law 111–148) and the Health Care and Barton (TX) Brown, Corrine Clyburn Hunter Moore (WI) Snyder Education Reconciliation Act of 2010 (Public Bean Brown-Waite, Coble Inglis Moran (KS) Souder Law 111–152). Becerra Ginny Coffman (CO) Inslee Moran (VA) Space Berkley Buchanan Cohen Israel Murphy (CT) Speier (b) REPORT.— Berman Burgess Cole Issa Murphy (NY) Spratt (1) REQUIREMENT.—Not later than April 1, Berry Burton (IN) Conaway Jackson (IL) Murphy, Patrick Stark 2011, and each April 1st thereafter until April Biggert Butterfield Connolly (VA) Jackson Lee Murphy, Tim Stearns 1, 2016, the Secretary of Defense shall submit Bilbray Buyer Conyers (TX) Myrick Stupak to the Committee on Armed Services of the Bilirakis Calvert Cooper Jenkins Nadler (NY) Sullivan Senate and the Committee on Armed Serv- Bishop (GA) Camp Costa Johnson (GA) Napolitano Sutton ices of the House of Representatives a de- Bishop (NY) Campbell Costello Johnson (IL) Neal (MA) Tanner Bishop (UT) Cantor Courtney Johnson, E. B. Neugebauer Taylor tailed report on the additional cost to the Blackburn Cao Crenshaw Johnson, Sam Nunes Terry Department of Defense associated with com- Blumenauer Capito Crowley Jones Nye Thompson (CA) pliance with the Patient Protection and Af- Blunt Capps Cuellar Jordan (OH) Oberstar Thompson (MS) fordable Care Act (Public Law 111–148) and

VerDate Mar 15 2010 03:23 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00047 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.082 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2986 CONGRESSIONAL RECORD — HOUSE April 28, 2010 the Health Care and Education Reconcili- Chandler Hodes Miller, George Slaughter Thompson (MS) Waters ation Act of 2010 (Public Law 111–152). Childers Holden Minnick Smith (NE) Thompson (PA) Watson Smith (NJ) Thornberry (2) MATTERS COVERED.—The report required Chu Holt Mitchell Watt Smith (TX) Tiahrt by paragraph (1) shall include— Clarke Honda Mollohan Waxman Clay Hoyer Moore (KS) Smith (WA) Tiberi (A) the projected costs of compliance for Weiner Cleaver Hunter Moore (WI) Snyder Tierney Welch all health care contracts awarded during the Clyburn Inglis Moran (KS) Souder Titus Westmoreland preceding year, as disclosed in a bid or pro- Coble Inslee Moran (VA) Space Tonko Whitfield Speier Towns posal in accordance with subsection (a)(1); Coffman (CO) Israel Murphy (CT) Wilson (OH) Spratt Tsongas (B) for all other health care contracts, the Cohen Issa Murphy (NY) Wilson (SC) Cole Jackson (IL) Murphy, Patrick Stark Turner incurred cost of compliance for the preceding Wittman Conaway Jackson Lee Murphy, Tim Stearns Upton year, as disclosed in accordance with sub- Wolf Connolly (VA) (TX) Myrick Stupak Van Hollen section (a)(2); and Woolsey Conyers Jenkins Nadler (NY) Sullivan Vela´ zquez Wu (C) any additional costs to the Department Cooper Johnson (GA) Napolitano Sutton Visclosky of Defense necessary to comply with such Costa Johnson (IL) Neal (MA) Tanner Walden Yarmuth Acts. Costello Johnson, E. B. Neugebauer Taylor Walz Young (AK) (c) HEALTH CARE CONTRACT DEFINED.—In Courtney Johnson, Sam Nunes Terry Wasserman Young (FL) this section, the term ‘‘health care contract’’ Crenshaw Jones Nye Thompson (CA) Schultz means a contract in an amount greater than Crowley Jordan (OH) Oberstar NOES—3 the simplified acquisition threshold for the Cuellar Kagen Obey Culberson Kanjorski Olson Broun (GA) Flake Paul acquisition of any of the following: Kaptur Cummings Olver NOT VOTING—10 (1) Medical supplies. Dahlkemper Kennedy Ortiz (2) Health care services and administra- Davis (CA) Kildee Owens Barrett (SC) Fattah Teague tion, including the services of medical per- Davis (IL) Kilpatrick (MI) Pallone Davis (AL) Fudge Wamp sonnel. Davis (KY) Kilroy Pascrell DeGette Harman (3) Durable medical equipment. Davis (TN) Kind Pastor (AZ) Fallin Hoekstra DeFazio King (IA) Paulsen (4) Pharmaceuticals. ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE (5) Health care-related information tech- Delahunt King (NY) Payne DeLauro Kingston Pence The SPEAKER pro tempore (during nology. Dent Kirk Perlmutter the vote). There are 2 minutes remain- Mr. SKELTON (during the reading). Deutch Kirkpatrick (AZ) Perriello ing in this vote. Mr. Speaker, I ask unanimous consent Diaz-Balart, L. Kissell Peters that the amendment be considered as Diaz-Balart, M. Klein (FL) Peterson Dicks Kline (MN) Petri b 1541 read and printed in the RECORD. Dingell Kosmas Pingree (ME) The SPEAKER pro tempore. Is there Doggett Kratovil Pitts So the bill was passed. objection to the request of the gen- Donnelly (IN) Kucinich Platts The result of the vote was announced Doyle Lamborn Poe (TX) as above recorded. tleman from Missouri? Dreier Lance Polis (CO) There was no objection. Driehaus Langevin Pomeroy A motion to reconsider was laid on The SPEAKER pro tempore. The Duncan Larsen (WA) Posey the table. question is on the amendment. Edwards (MD) Larson (CT) Price (GA) Edwards (TX) Latham Price (NC) f The amendment was agreed to. Ehlers LaTourette Putnam The SPEAKER pro tempore. The Ellison Latta Quigley question is on the engrossment and Ellsworth Lee (CA) Radanovich GENERAL LEAVE Emerson Lee (NY) Rahall third reading of the bill. Engel Levin Rangel Mr. SKELTON. Mr. Speaker, I ask The bill was ordered to be engrossed Eshoo Lewis (CA) Rehberg unanimous consent that all Members and read a third time, and was read the Etheridge Lewis (GA) Reichert may have 5 legislative days in which to third time. Farr Linder Reyes Filner Lipinski Richardson revise and extend their remarks and in The SPEAKER pro tempore. The Fleming LoBiondo Rodriguez which to insert extraneous materials in question is on the passage of the bill. Forbes Loebsack Roe (TN) the RECORD on the bill, H.R. 5013, just The question was taken; and the Fortenberry Lofgren, Zoe Rogers (AL) passed. Foster Lowey Rogers (KY) Speaker pro tempore announced that Foxx Lucas Rogers (MI) The SPEAKER pro tempore. Is there the ayes appeared to have it. Frank (MA) Luetkemeyer Rohrabacher objection to the request of the gen- RECORDED VOTE Franks (AZ) Luja´ n Rooney tleman from Missouri? Frelinghuysen Lummis Ros-Lehtinen Mr. SKELTON. Mr. Speaker, I de- Gallegly Lungren, Daniel Roskam There was no objection. mand a recorded vote. Garamendi E. Ross A recorded vote was ordered. Garrett (NJ) Lynch Rothman (NJ) f Gerlach Mack Roybal-Allard The SPEAKER pro tempore. This Giffords Maffei Royce will be a 5-minute vote. Gingrey (GA) Maloney Ruppersberger UM RESEARCH DISCOVERY ON The vote was taken by electronic de- Gohmert Manzullo Rush ALZHEIMER’S vice, and there were—ayes 417, noes 3, Gonzalez Marchant Ryan (OH) Goodlatte Markey (CO) Ryan (WI) (Ms. ROS-LEHTINEN asked and was not voting 10, as follows: Gordon (TN) Markey (MA) Salazar given permission to address the House [Roll No. 230] Granger Marshall Sa´ nchez, Linda for 1 minute and to revise and extend Graves Matheson T. AYES—417 Grayson Matsui Sanchez, Loretta her remarks.) Ackerman Bilirakis Brown-Waite, Green, Al McCarthy (CA) Sarbanes Ms. ROS-LEHTINEN. Mr. Speaker, I Aderholt Bishop (GA) Ginny Green, Gene McCarthy (NY) Scalise would like to extend my congratula- Adler (NJ) Bishop (NY) Buchanan Griffith McCaul Schakowsky tions to the University of Miami re- Akin Burgess Grijalva McClintock Schauer Bishop (UT) searchers on their recent discovery Alexander Blackburn Burton (IN) Guthrie McCollum Schiff Altmire Blumenauer Butterfield Gutierrez McCotter Schmidt that will lead toward a new under- Andrews Blunt Buyer Hall (NY) McDermott Schock standing of Alzheimer’s disease. Arcuri Boccieri Calvert Hall (TX) McGovern Schrader University of Miami researchers Austria Boehner Camp Halvorson McHenry Schwartz Baca Campbell Hare McIntyre Scott (GA) identified a gene that appears to double Bonner Bachmann Cantor Harper McKeon Scott (VA) Bono Mack a person’s risk of developing late-onset Bachus Cao Hastings (FL) McMahon Sensenbrenner Boozman Alzheimer’s. Alzheimer’s, as we all Baird Capito Hastings (WA) McMorris Serrano Boren Baldwin Capps Heinrich Rodgers Sessions know, is a debilitating disease that im- Barrow Boswell Capuano Heller McNerney Sestak pacts 5 million Americans. As a daugh- Bartlett Boucher Cardoza Hensarling Meek (FL) Shadegg ter of a mother with Alzheimer’s dis- Barton (TX) Boustany Carnahan Herger Meeks (NY) Shea-Porter Bean Boyd Carney Herseth Sandlin Melancon Sherman ease, I know how painful this disease Becerra Brady (PA) Carson (IN) Higgins Mica Shimkus can be for both the individual and the Berkley Brady (TX) Carter Hill Michaud Shuler family. Berman Braley (IA) Cassidy Himes Miller (FL) Shuster I would like to thank Director Mar- Berry Bright Castle Hinchey Miller (MI) Simpson Biggert Brown (SC) Castor (FL) Hinojosa Miller (NC) Sires garet Pericak-Vance and all of the staff Bilbray Brown, Corrine Chaffetz Hirono Miller, Gary Skelton of the John P. Hussman Institute for

VerDate Mar 15 2010 04:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00048 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.047 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2987 Human Genomics at the University of that health legislation being consid- ing into the United States from all Miami Medical School for their hard ered by Congress would not add to the over the world through the country of work and dedication to this valuable Federal deficit but was silent about Mexico. Because Mexico has a vast research. States bearing the weight of unfunded coastline in the Atlantic and the Pa- The University of Miami will con- mandates. The proposed legislation cific, people go to Mexico, sneak into tinue to take steps to improve our asks Congress to refrain from imposing Mexico, and then sneak into the United knowledge about Alzheimer’s so that unfunded mandates on the State and States through our southern border. families will not have to feel the pain asks that every Member be given a Part of those people that are coming in of watching their loved ones being copy. are called drug cartels. They’re coming slowly ravaged by this terrible afflic- We already have a law against un- in to sell narcotics—a profit of over $40 tion. funded mandates, but that did not stop billion a year to the drug cartels that f the Democrat majority from adding a smuggle dope into this country. But huge burden on the States with this also other people are coming into the b 1545 new law. I agree with this resolution United States. EXPIRATION OF 45G CREDIT and will encourage Pennsylvania legis- Here’s a photograph that was taken lators to support it. in Zapata County, Texas. I’m sure (Mr. MORAN of Kansas asked and you’ve never been there, Mr. Speaker, f was given permission to address the but it’s down on the Texas-Mexico bor- House for 1 minute.) FEDERAL GOVERNMENT IS MIA der. It’s a small county. This is an RV Mr. MORAN of Kansas. Mr. Speaker, parked near the border. But this hap- for 7 years now, my colleague Mr. POM- (Mr. POE of Texas asked and was given permission to address the House pens to be a helicopter. It turns out it’s EROY and I have worked to preserve a Russian-made helicopter with Mexi- transportation connections for commu- for 1 minute.) Mr. POE of Texas. Mr. Speaker, a bi- can markings on it. It’s about a mile nities that would be disconnected but and a half to two miles into the United for their short line and regional freight partisan group of Members rep- resenting all the southern border States across the border. railroads. Our bill, H.R. 1132, which ex- Now, the border with Mexico and States today called for armed National tends the section 45G short line rail- Texas is not a land border. There’s a Guard troops at the border. Our border road tax credit, is supported by 259 of river there. So there is no way some- State Governors have been specifically our colleagues. body can be mistaken when they acci- asking for troops over a year. Violence Unfortunately for Kansas businesses dentally, they say, come into the is escalating. Law enforcement lacks that depend upon rail service, the 45G United States. We don’t know the in- the manpower and equipment they credit expired last year. As a result, tentions of this helicopter. Two weeks need to protect the people on the bor- small railroads like the Kansas & Okla- before this photograph was taken, der. National Guard troops must be homa Railroad, the Kyle Railroad, and other photographs were taken of either armed and sent to the border, with the Nebraska, Kansas & Colorado Rail- this helicopter or a similar helicopter, clear and concise rules of engagement way are unable to maximize their in- once again, coming into the United that allow them to defend themselves frastructure investments to best serve States—intentions unknown. Are these if fired upon. their customers. The 45G tax credit folks guarding a shipment of drugs? Seventy-nine American citizens were generates nearly 7 million good-paying Are they working with the drug car- murdered in Juarez, Mexico, just last track worker hours each year. More tels? Are they looking for bad guys, or year. Last month, an Arizona rancher importantly, the tax credit helps farm- what are they doing? We don’t know. was shot dead on his own property. His ers and coops in rural communities of The problem is the border is porous. murderer was tracked to the border. Kansas move grain to food processors The southern border of the United Assaults against Border Patrol agents in Kansas City and manufacturers in States is porous with that border of have increased 16 percent so far this Wichita to move steel and their fin- Mexico. The violence in Mexico is esca- year. Border Patrol Agent Robert ished goods to market. lating. Of course, it comes into the Rosas was murdered in July—execution I rise today to express my hope that United States. There are 14 border style. we can find a path forward to continue counties in Texas that border Mexico. I Border States need help. The Federal the economic development and sound recently talked to the sheriffs of those Government has been missing in ac- transportation policy fostered by the counties on the same day and asked tion. National Guard troops should be tax provisions contained in H.R. 1132. them this question: How many people sent to the border to help the Border in your local jail are foreign nationals f Patrol and local sheriffs protect the charged with crimes that are not immi- safety and security of the people. UNFUNDED MANDATES ON STATES gration violations? The total number And that’s just the way it is. (Mr. THOMPSON of Pennsylvania was 37 percent. That’s right, 37 percent asked and was given permission to ad- f of the people in border county jails in dress the House for 1 minute and to re- SPECIAL ORDERS Texas are foreign nationals charged vise and extend his remarks.) with misdemeanors and felonies. That’s Mr. THOMPSON of Pennsylvania. The SPEAKER pro tempore (Mr. a lot of folks. That costs somebody a Mr. Speaker, I received a letter from a DRIEHAUS). Under the Speaker’s an- lot of money. And that is because the member of the Pennsylvania State nounced policy of January 6, 2009, and crime problem goes back and forth House explaining a resolution he has under a previous order of the House, across the border. It’s in Texas and it’s introduced to stop the Federal Govern- the following Members will be recog- also in Mexico. It’s because the borders ment from imposing unfunded man- nized for 5 minutes each. are porous. dates on the State. The resolution cites f We have down on the border with the Urban Institute as estimating Mexico the Border Patrol. They’re Pennsylvania will see an additional MORE NEWS FROM THE BORDER doing as marvelous a job as they pos- 818,390 people eligible for Medicaid The SPEAKER pro tempore. Under a sibly can, but they need some help. under the health care reform law. The previous order of the House, the gen- Here’s a photograph, Mr. Speaker, that cost to the Commonwealth of that ad- tleman from Texas (Mr. POE) is recog- was also recently taken. This is a Bor- ditional burden totals $2.31 billion be- nized for 5 minutes. der Patrol vehicle. It has been impro- tween 2014 and 2019. Some 12 percent of Mr. POE of Texas. I bring you news vised. It’s a pickup truck. They call Pennsylvania is now enrolled in Med- from the third front—that being the these things the ‘‘war wagons.’’ Now icaid, making welfare entitlements one southern border of the United States why do they do that? Because they of the top-spending categories in the with Mexico. The first front, of course, think they may be in a war zone down budget. is that engagement in Iraq; the second, on the border. If you notice, Mr. Speak- The resolution states that on Sep- in Afghanistan; the third, on our vio- er, there’s a mesh steel wire across the tember 9, 2009, the President promised lent southern border. People are com- windshield, across all of the windows.

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00049 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.088 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2988 CONGRESSIONAL RECORD — HOUSE April 28, 2010 There’s even a mesh cage that protects guided.’ But it wouldn’t be necessary if at the V–22 Osprey, a plane so wasteful the emergency lights on top of the ve- the Federal Government fulfilled its and unnecessary that even former Vice hicle. responsibilities to secure the border. President Cheney was trying to kill it The question is, Why do they have We are a Nation of immigrants—legal as far back as the late 1980s when he that stuff on their Border Patrol vehi- immigrants—but we are also a Nation was Secretary of Defense. According to cles? Well, you see, when they patrol of laws that 70 percent of Arizonans our analysis at the Congressional Pro- the border with Mexico, people who and most Americans want to see en- gressive Caucus, we can save $60 bil- wish to come into the United States il- forced. The first duty of the Federal lion, at least, a year by eliminating legally pelt rocks at our Border Patrol. Government is to protect the rights, such Cold War relics. And so they have to protect themselves property, and lives of U.S. citizens.’’ And, Mr. Speaker, then there’s the and their vehicles by putting this wir- I couldn’t agree more. biggest ticket item of all, purportedly ing, this cage, around their own vehi- f keeping us safe but actually spending cle. Now, if somebody threw rocks at a us into bankruptcy and undermining police officer in the United States, nor- DON’T STOP WITH IMPROVING our national security interests. I’m re- mally those people get arrested and go DEFENSE PROCUREMENT ferring to the ongoing wars in Afghani- to jail. But it doesn’t seem like that is The SPEAKER pro tempore. Under a stan and Iraq. Every day, at a pre- what is occurring, and so they have to previous order of the House, the gentle- dicted price tag of around $1 trillion, protect themselves. woman from California (Ms. WOOLSEY) we are sending American soldiers to die This is just one example of the vio- is recognized for 5 minutes. for a strategy that is a moral outrage lence that is occurring. Border Patrol Ms. WOOLSEY. Mr. Speaker, this and a practical failure. For a fraction in the Tucson area, assaults against body took an important step today by of the cost, we could take a smarter ap- them this year are up 300 percent from passing the IMPROVE Acquisitions proach by expanding poor countries’ last year. That’s right, assaults on our Act, which will bring badly needed re- capacity to provide for their own peo- agents who are trying to protect the forms to the defense procurement proc- ple. That means more resources for de- border, protect us. So we have to do ess. The Pentagon, of course, is leg- mocracy promotion, physical infra- more than that. We have to support the endary for bureaucratic inefficiency, structure, human capital development, Border Patrol, the sheriffs that work cost overruns, and even outright cor- et cetera, et cetera. That would be the along the border; and we have to do ruption in its purchasing practices. Re- way to fight terrorism—with compas- what the Governors of some of those member the $640 toilet seat that the sion, not aggression; using diplomacy, States have asked for, and that’s send Navy bought back in the 1980s? Re- not destruction; by investing, rather the National Guard down to the border. member our soldiers in Iraq sifting than invading. We protect the borders of other na- through scrap heaps for makeshift So let’s do more than streamline pro- tions. Why don’t we protect our own? body armor? curement, because, Mr. Speaker, if we We don’t know. I think it’s politics. b 1600 overhaul the way we go about pro- It’s time that we have the moral will tecting America and we redefine what to secure the dignity of the United For too long, Mr. Speaker, the Pen- it means to provide for the common de- States. It’s about border security. It’s tagon has been the irresponsible teen- fense as the Constitution instructs us about national security. It’s not an ager who gets a ridiculously generous to do, we will do the right thing, and issue of immigration. It’s an issue of allowance, loses part of it, and then the right thing will be to start by whether or not people can come into spends the rest on junk food. With this bringing our troops home. new bill, though, mom and dad will the United States legally or illegally. f We must have the moral will to keep begin to exercise some oversight over The SPEAKER pro tempore (Ms. that allowance. Given the size of the the criminal gangs, the drug cartels, CHU). Under a previous order of the the human smugglers out of the United DOD budget and the nature of its mis- House, the gentleman from North Caro- sion, it is about time. It’s remarkable States. They know our borders are po- lina (Mr. JONES) is recognized for 5 rous. People in other countries know that up until now, there’s been no ef- minutes. our borders are porous. They go fective performance metric system to (Mr. JONES addressed the House. His through Mexico and come into the assure that taxpayers are getting value remarks will appear hereafter in the United States. for their defense dollars. Extensions of Remarks.) We’re living through a time, Mr. The Federal Government has been f missing in action. It’s time that they Speaker, when nearly every American show up on the border and send the Na- family is tightening its belt and mak- CONGRATULATING ALLISON tional Guard to support our troops, ing sure that every dollar it spends is NOVACK FOR BEING NAMED THE support the border sheriffs, and support on something it truly needs. We owe it TOP OUTSTANDING SCHOOL the Border Patrol. to these families to ensure that the YOUTH VOLUNTEER OF THE And that’s just the way it is. government agency charged with keep- YEAR ing them safe is doing the same. f The SPEAKER pro tempore. Under a As pleased as I am with the passage previous order of the House, the gentle- ARIZONA PROTECTS ITS CITIZENS of the IMPROVE Act, I can’t help but woman from Florida (Ms. ROS- The SPEAKER pro tempore. Under a think that we are nibbling around the LEHTINEN) is recognized for 5 minutes. previous order of the House, the gen- edges of a much, much larger problem. Ms. ROS-LEHTINEN. Madam Speak- tleman from Texas (Mr. SMITH) is rec- The issue is not just a managerial one er, I rise today with a wonderful mis- ognized for 5 minutes. of how the Pentagon goes about its ac- sion—to recognize a local student, Alli- Mr. SMITH of Texas. Mr. Speaker, in quisitions. The more significant matter son Novack. Allison has recently been a recent editorial praising Arizona for is the Nation’s overall defense policy named the Top Outstanding School its action to enforce immigration laws, and budget priorities. For example, we Youth Volunteer of the Year for the Investor’s Business Daily said the fol- continue to spend billions of dollars Miami-Dade County Public Schools lowing: ‘‘There are 460,000 illegal immi- every year on sacred cow weapons sys- system. Our superintendent of schools, grants in Arizona, a number that in- tems that were designed for a bygone Alberto Carvalho, presented her with creases daily, placing an undue burden era. this impressive award at Miami’s Jun- on the State’s schools, hospitals, and Finally, last year, we cut off funding gle Island earlier this month. law enforcement. Arizona has a window for the F–22 Raptor, designed to neu- As a senior at Miami Beach Senior seat to an illegal invasion and on the tralize the next generation of Soviet High School, Allison has volunteered in escalating and violent drug war in planes. I guess it took almost 20 years numerous capacities. She has served as Mexico that has put American lives to figure out there has been no genera- the president of the Miami Beach chap- and society at risk. tion of Soviet plane because there’s ter of the Junior State of America. She ‘‘President Obama calls Arizona’s been no generation of the Soviet has served as producer for the non- tough new law ‘irresponsible’ and ‘mis- Union. But we’re still throwing money profit group 1308 Productions. She is

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00050 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.090 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2989 also known for her work as part of Sky efit our area in her volunteer work and The men who are good and the men News and as the creator of the Rock will be a magnificent addition to the who are bad, as good and as bad as I. I the Vote concerts and shows in our University of Miami Canes team. would not sit in the scorner’s seat, nor area. And I can personally attest, she Congratulations, Allison. Congratu- hurl the cynic’s ban. Let me live in a was a fabulous host to my recent con- lations to the Novack family. house by the side of the road and be a gressional visit to Miami Beach High. f friend to man. As an elected public official, I under- ‘‘I see from my house by the side of stand the great effort and the personal A TRIBUTE TO DR. DOROTHY the road, by the side of the highway of sacrifice that goes along with trying to HEIGHT life, the men who press with the ardor make a difference in our community. The SPEAKER pro tempore. Under a of hope, the men who faint with the The time that Allison has spent and previous order of the House, the gen- strife. But I turn not away from their the care she has demonstrated are tleman from Illinois (Mr. DAVIS) is rec- smiles and tears, both parts of an infi- truly beyond her years. All of us in ognized for 5 minutes. nite plan. Let me live in a house by the south Florida are fortunate to have Mr. DAVIS of Illinois. Madam Speak- side of the road and be a friend to man. someone like Allison who gives so gen- er, I take this opportunity to pay trib- ‘‘I know there are brook-gladdened erously of her time and energy to our ute to one of the most accomplished, meadows ahead, and mountains of wea- area. This award is yet another shining most engaged, and most effective so- risome height; that the road passes on example of how one individual’s hard cial workers that this country has ever through the long afternoon, and stretches away to the night. And still I work can make a difference. Allison is known, Dr. Dorothy Height. Following rejoice when the travelers rejoice, and an inspirational and energetic student in the footsteps and tradition of Mary weep with the strangers that moan, nor leader who has created positive results McLeod Bethune, Dr. Height became live in my house by the side of the for her school and our greater commu- renowned for her dedication to social justice in her roles as administrator, road, like a man who dwells alone. nity. ‘‘Let me live in my house by the side Allison’s public service has also been educator, and social activist. of the road, where the race of men go recognized by organizations such as Dr. Height was born in 1912, the same by. They are good, they are bad, they Voice of America radio as well as many year as my father, and, therefore, expe- are weak, they are strong, wise, fool- other media and civic groups. rienced and endured all of the social ish; so am I. Then why should I sit in This dedication to civic engagement characteristics of her childhood era. the scorner’s seat, or hurl the cynic’s stems from Allison’s family, which has Nevertheless, she attended college at ban? Let me live in my house by the a legacy of public service. Allison is New York University and did post- side of the road’’—like Dr. Dorothy the daughter of Surfside mayor emer- graduate work at Columbia University Height—‘‘and be a friend to man.’’ itus Paul Novack. Mayor Novack and the New York School of Social served as mayor for six terms and is Work. Working as a social worker, Dr. f himself, also, a graduate of Miami Height came into contact with the The SPEAKER pro tempore. Under a Beach Senior High School, the Hi- problems and conditions of the average previous order of the House, the gen- Tides. Also, Allison’s grandmother citizen or common man. These experi- tleman from Kansas (Mr. MORAN) is Mickey Novack served as Surfside vice ences and understandings guided her recognized for 5 minutes. (Mr. MORAN of Kansas addressed the mayor, as president of Women in Gov- thinking, ignited her passions, and House. His remarks will appear here- ernment Service, WIGS, and as treas- kept her going until just a few days after in the Extensions of Remarks.) urer of several educational and civic ago. organizations, including the PTA and Dr. Height joined the National Coun- f Hadassah. cil of Negro Women and became its The SPEAKER pro tempore. Under a It is wonderful to see Allison con- voice and leader. She served as the na- previous order of the House, the gentle- tinuing in the family tradition of giv- tional president of Delta Sigma Theta, woman from Ohio (Ms. KAPTUR) is rec- ing back to our community. Her hard Inc. for 11 years and was the only ognized for 5 minutes. work is fundamental in making our woman engaged in leadership of the (Ms. KAPTUR addressed the House. community better for years to come. United Civil Rights Organization with Her remarks will appear hereafter in With the support of wonderful parents Dr. Martin Luther King, Jr., Whitney the Extensions of Remarks.) like Paul and Denise, I am certain that Young, Jr., A. Phillip Randolph, James f Allison enjoyed the strong family net- Farmer, Roy Wilkins, and JOHN LEWIS. The SPEAKER pro tempore. Under a work of support and guidance that is When the movement subsided, Dr. previous order of the House, the gen- needed to accomplish so much for this Height’s work continued. tleman from Indiana (Mr. BURTON) is young woman who is soon to be off She was energetic, went everywhere recognized for 5 minutes. going to college. Allison’s steadfast and to everything. She developed (Mr. BURTON of Indiana addressed commitment to public service is a tes- women by serving as their mentor and the House. His remarks will appear tament to her character and to her friend. The women that I know and hereafter in the Extensions of Re- family. She is a wonderful example of worked with in Chicago are Ms. Rosie marks.) today’s young adults who have the will Bean and Ms. Anetta Wilson, both of f to affect positive change in our com- whom are always willing to call them- The SPEAKER pro tempore. Under a munity. selves disciples of Dr. Dorothy Height. previous order of the House, the gen- Allison will soon graduate from Dr. Height was an incredible, unbe- tleman from Oregon (Mr. DEFAZIO) is Miami Beach Senior High School this lievably committed and dedicated recognized for 5 minutes. June as an exemplary student who has woman whose life was the true essence (Mr. DEFAZIO addressed the House. been a credit to her school and our of living. And I think that the poet His remarks will appear hereafter in community. Next semester, she will be Sam Walter Foss may have had Dr. the Extensions of Remarks.) joining the proud ranks of students at- Dorothy Height in mind when he f tending the University of Miami—go penned, ‘‘House by the Side of the The SPEAKER pro tempore. Under a Canes—and pursuing a degree in com- Road.’’ previous order of the House, the gen- munications. ‘‘There are hermit souls that live tleman from Virginia (Mr. FORBES) is Again, I congratulate Allison for her withdrawn, in the place of their self- recognized for 5 minutes. recent award as Top Outstanding content. There are souls like stars that (Mr. FORBES addressed the House. School Youth Volunteer. I also wish dwell apart, in a fellowless firmament. His remarks will appear hereafter in her the best as she makes the transi- There are pioneer souls that blaze the the Extensions of Remarks.) tion to college life, and I look forward paths, where highways never ran. But f to hearing from her about her contin- let me live by the side of the road and The SPEAKER pro tempore. Under a ued work in making this community be a friend to man. previous order of the House, the gen- an even better place in which to live. I ‘‘Let me live in a house by the side of tleman from Pennsylvania (Mr. DENT) know that Allison will continue to ben- the road, where the race of men go by. is recognized for 5 minutes.

VerDate Mar 15 2010 04:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00051 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.094 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2990 CONGRESSIONAL RECORD — HOUSE April 28, 2010 (Mr. DENT addressed the House. His ing too much, so the government needs if you are among those who already remarks will appear hereafter in the to take it all over. have a health insurance policy, nothing Extensions of Remarks.) But the whole thing was sold on we in this plan will require you or your f are going to bend the cost curve down employer to change. Well, for how so Medicare and Medicaid, also health long? Well, until the bill goes into ef- ADDITIONAL FACTS AND FIGURES care in America, will cost less. Here we fect; then it will make you change. So FROM THE HEALTH CARE BILL have Obama’s hand-picked Center for this is really something here. Particu- The SPEAKER pro tempore. Under Medicare and Medicaid Services saying larly the people who are going to be the Speaker’s announced policy of Jan- that, in fact, this bill is going to in- rather cynical when they read this are uary 6, 2009, the gentleman from Mis- crease the cost of health care. Well, the people who are the Medicare sen- souri (Mr. AKIN) is recognized for 60 that is kind of odd because the whole iors on Medicare Advantage. I don’t minutes as the designee of the minor- logic for doing it was because we are know how many hundreds of thousands ity leader. going to decrease it. And now we are of people are in Medicare Advantage. Mr. AKIN. Madam Speaker, I appre- hearing it will increase it. We are going You are going to have half a billion ciate being recognized. As we do on oc- to look at some of the different prom- dollars taken out, $500 billion being casion on Wednesday, after the main ises, quotes, and comments. taken out of Medicare Advantage. And part of the House business is closed, we I am joined by a good friend of mine obviously when you take that money have an opportunity to take a look at from Pennsylvania, and hopefully we out, the people on that plan are not various topics and subjects. Usually we will have some other guests on the going to have that same plan. About 50 have chosen subjects of significant im- floor tonight. I will introduce things percent of the seniors in Medicare Ad- portance to Americans, ones that af- first, and then we will discuss this. vantage are not going to have the same fect everybody’s lives. And it might This was an attempt to try to sum- thing. seem odd in that we have already marize the 2,000-page bill. They say a I want to contrast back and forth, passed the government takeover of picture is worth a thousand words. the President says something, but yet, health care bill that we would go back Well, this picture may be a little it taint necessarily so, as the song to that bill, but I think there is con- tough. I don’t know if it is worth 2,000 goes. tinuing information that is being re- pages or not, but it is a tough picture. Mr. THOMPSON of Pennsylvania. I leased that a lot of people may not This is a rough idea what the govern- thank my good friend from Missouri have known about when the bill was ment has to take over on the bill we for leading this discussion. It is such passed, additional facts and figures just passed. So obviously it is going to an important discussion as we look at which are, at a minimum, quite dis- be complicated. It shouldn’t surprise us the consequences of this health care turbing. when we see this and ask: Is this going bill that has been passed. The facts and figures that I thought to save money? The answer now from Mr. AKIN. Do you think we really that would be important to talk a lit- Obama’s own people is, No, this is know the consequences? I don’t think tle bit about today are the facts and going to cost more money than it is people have a clue what the con- figures that come from the President’s going to save. sequences are. own people, the Centers for Medicare & So this is one of those things, just to Mr. THOMPSON of Pennsylvania. Medicaid Services. These are people get a sense of how complex the change That’s right. I don’t think we do either. that the administration has chosen. is, and people are asking our offices all The original Senate bill was 2,000 They are a group of people who are the time: When is this going to take pages. We had a manager’s amendment, taking a good look at the bill that was place? For instance, those of us in Con- and a reconciliation bill on top of that. proposed and has been passed, what its gress, we lose our health care coverage We are talking close to 4,000 pages, and implications are and some of the finan- with this bill. So we are asking our- now the bureaucrats have to take that cial facts. selves: When do we no longer have bill and put it into regulatory lan- So this was something that was actu- health insurance; and where do we have guage. We may not know certainly for ally approved by the Obama adminis- to go to buy it? months and maybe years everything tration. This was not the House Con- Well, you have to go to an open ex- that is in here. gressional Budget Office, which is change. And there are a lot of ques- It really comes down to one word, viewed as being fairly bipartisan and tions about how is it that the Federal and it is credibility. To say one thing, has its own numbers. But these facts Government is going to take over one- words one way and your actions com- have just come out recently. We have sixth of the U.S. economy and some- pletely opposite, it lacks credibility. to assume the President knew them, how make it more efficient than what We shouldn’t be surprised. We saw that and the facts are in sharp contradic- we have right now. The answer is they going back. Stretch our imaginations, tion, in complete disagreement with are not. They are not. The authorities we don’t have to go that far back, we statements made by the President him- appointed by the Obama administra- saw that a little over a year ago with self. tion again say it is not going to be the stimulus bill. The President said So I think we need to take a look at more efficient, it is going to be more we have to do this stimulus bill. It was some of these things. Particularly, expensive. his words then that said we have to do there was the claim in the health care There were all kinds of promises that this stimulus bill because if we don’t, bill that we have to bend the cost curve we heard about, and I think it is impor- unemployment may go over 8 percent. down because the numbers financially, tant to go back and look at some of So we spent $878 billion on the stim- for our Nation, we can’t continue to those things. Congressman THOMPSON ulus bill; and in the end, what did we have increasing health care costs. from Pennsylvania may remember get? Well, we are at 10 percent or just some of those quotes. under 10 percent unemployment at this b 1615 First, this is one that the President point. Everything was centered on the fact said: If you are among the hundreds of Mr. AKIN. So we are getting this rad- that we are spending too much on millions of Americans who already ical, one statement says one thing and health care. First of all, of course, the have health insurance through your yet when you look at it, it is the exact premise of that is a little odd. If you job, Medicare or Medicaid or the VA, opposite. are a sick person, maybe you are not nothing will require your employer to Mr. THOMPSON of Pennsylvania. Ac- spending too much on health care. change the coverage with the doctor tions as we know, speak louder than Maybe you spent what you needed to you have. Try to explain that to the words. get well. But we are looking when that Members of Congress who are all losing Mr. AKIN. The promise was if you comment is made on what the govern- their health insurance. This doesn’t don’t pass the stimulus bill, this was a ment is spending on health care, par- even pass the laugh test. This is ridicu- year ago, you could have unemploy- ticularly Medicare and Medicaid. So we lous to make this statement. ment above 8 percent. I wish we hadn’t are saying the government runs Med- The proposal that is before us, and passed it because our unemployment is icaid and Medicare and they are spend- you can probably technically say first, now 10 percent.

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00052 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.100 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2991 You were on the floor here about a do here, and as I go back and think pany is being faced with some choices year ago saying it wasn’t going to through the last 15 months, and re- now. Their first choice is just take work. It wasn’t that we were being pes- member when this debate first began: their employees and dump them into, simistic, but we learned from history What is the problem that we are trying is it the State or the Federal? from Henry Morgenthau, FDR’s Sec- to fix? Well, the problem we are trying Mr. ROE of Tennessee. The Federal retary of the Treasury. He said this to fix was we had 40-plus million unin- exchange. economic approach of the government sured people in America, and that is Mr. AKIN. You can take your em- spending tons of money doesn’t fix this untenable in this country. ployees and unload them on the Fed- problem of unemployment and reces- Number two, health care costs were eral Government, and if you do that, sion. It just doesn’t work. After trying going up faster than inflation. That how much money does it save? it for 8 years, it wasn’t that we were was a problem. There is no question Mr. ROE of Tennessee. It saves $40 rocket scientists, it is just we learned that the uninsured and rising health million. It is a large company. a little something from history. care costs had to be addressed. There Mr. AKIN. So if you are a big com- Yet we get this one promise that if are many ways you can address this. I pany, you can make $40 million by just you don’t do this, unemployment is brought to the table 17 years experi- dumping your employees onto this going to go as high as 8 percent. In- ence with a failed plan in Tennessee. plan? stead it went to 10 when we spent what- Mr. AKIN. I want to mention that Mr. ROE of Tennessee. That’s cor- ever it was, $700 billion or $800 billion. there may be some people joining us rect. That is just amazing. That is one of the that are not always here on Wednesday Mr. AKIN. Why wouldn’t somebody promises. I was thinking about the evening. You are not just a Member of do that? health care promises, but you’re right Congress, you are not just a former Mr. ROE of Tennessee. Why wouldn’t on that. doctor, but you are also from the State they do that. Exactly. That is exactly Mr. THOMPSON of Pennsylvania. of Tennessee, and the State of Ten- what happened in Tennessee. What One of the premises that I have always nessee is one of two States that tried happened in Tennessee is employers led my life by is the best predictor of this ObamaCare kind of approach to saw they could let their employees go future performance is past perform- health care. And your experience in the to the TennCare plan, and 45 percent of ance. I think there is a significant State of Tennessee was did it decrease the people who got on TennCare had issue, a great divide being what is premiums and decrease the cost of in- private health insurance and those being said, what the President said surance? That is what was promised by costs were shifted to the State of Ten- about the health care and some of the the President when he was a Senator. nessee. promises that were made in order to He said we are going to start by reduc- What happened, the little caveat that get this bill pushed through Congress ing premiums by as much as $2,500 a isn’t ever talked about is that no Fed- and what we see now and what we have family. Did you believe that? eral plan, including Medicare, pays the now is the reality as we take our time Mr. ROE of Tennessee. No, I did not. actual cost of the care. What you are to look through this bill. One of the reasons was just the prac- talking about right there in Tennessee, Mr. AKIN. Here is one that might be tical experience I had for over 16 years the TennCare plan paid about 50 or 60 of interest to you. I have a couple of has shown that was not in the case. cents on the dollar. So guess what hap- examples. Back in the 1990s, we had a lot of unin- pened to private businesses, those costs This is a quote from Senator Barack sured people, and we asked for a Med- got shifted and their premiums not Obama and it was on 10–4-08. We will icaid exemption and we got that in only went up at the rate of inflation, start—talking about his health care Tennessee to form a managed care but you got those added costs added to proposal—we will start by reducing plan. The idea was we were going to it. premiums as much as $2,500 a family. If have various plans compete among b 1630 somebody told me that, I am saying I each other to hold health care costs like that. Our expenses, we go through down. What actually happened was So that’s where your $2,000 comes as a lot of money with a bunch of kids and over about a 10-year period of time our cost shift that we’re talking about. health care. If you are going to reduce costs tripled in this particular plan. Mr. AKIN. Okay, I’m starting to un- my premiums by $2,500 a family, that is Mr. AKIN. So your costs tripled when derstand. Doctor, you’re great at ex- a great promise if it is any good. And you went this route? plaining this stuff. yet after making this promise, now Mr. ROE of Tennessee. Over 10 years So what you’re saying is you’ve got a here we go, not only the Congressional they tripled. What happened was a lot certain number of people that are all Budget Office which is our bean of people, and I will predict this right kicking into the system and paying for counters, Republican and Democrat here on the House floor right now, medical care. All of a sudden you cre- bean counters in the House and Senate, what is going to happen nationally ate a government incentive to dump all our guys, and this Center for Medicare with this plan is exactly what hap- those people on the government. Now and Medicaid Services which is the ad- pened with our plan. I have seen this the government is having to pick it up, ministration’s, it is Obama’s bean picture before. What will happen is you and guess who’s going to pick up the counters, are saying it is going to re- will have people, and we already have a bill? Well, it’s the people who are still duce the premiums by as much as business in west Tennessee that is a buying private insurance. So when you $2,500, both of these offices are saying large plan. And remember, the Federal take these people out—the company is that the insurance premiums will in- Government is going to determine not paying for them anymore—now the crease under the Obama care, not de- what is adequate health care coverage private insurance guys, their cost goes crease by $2,500, it is going to increase in this great scheme, not you the indi- way up to compensate for these other and it is going to increase by, I think vidual or you the company, what you people because the government is not they are saying—let’s see, here it is: can afford, but the Federal Govern- paying enough to cover the insurance. Americans who buy their own health ment will decide what is adequate So if the government puts in 50 cents insurance plans will pay an average of health care coverage. on the dollar, somebody’s got to make $2,100 a year more for their policies. This particular business their cov- up the other 50 cents. Guess who it’s So if you are somebody going out and erage that they have now the Federal going to be? The other poor sucker out buying your health insurance, instead Government says no, this is not ade- there who’s trying to buy his own of decreasing by $2,500, it is going to in- quate coverage. And so it will cost this health insurance. crease by $2,100. That is a little dif- one business $40 million more. Now if Mr. ROE of Tennessee. And then ferent story. That is the sort of thing they drop their coverage, their covered what’s going to happen is going to be, that gets people upset. workers into the exchange and they in a few years—in our State, it took We are joined by a doctor with a pay the $2,000 fine per individual, it about 5 or 6 years for us to recognize medical opinion on this subject. will save that company $40 million. that we had a big problem on our Mr. ROE of Tennessee. Thank you. Mr. AKIN. Let’s get this straight. hands. What’s going to happen is that One of the things that we are trying to You have a company here and the com- then, us, the politicians, are going to

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00053 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.102 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2992 CONGRESSIONAL RECORD — HOUSE April 28, 2010 step up and say, see, the private sector difficulty recruiting and retaining in Tennessee—if you look at the demo- failed; we told you it was going to fail. health care professionals, especially to graphics, they tend to be older and less This system that we have, Congress- rural areas and some urban areas, when affluent. And those smaller hospitals man AKIN, is designed to fail, and it you look at escalating costs of medical that don’t get the more affluent people will. liability insurance—which our col- have a higher percentage of Medicaid Mr. AKIN. Oh, so we’re designed to leagues across the aisle refuse to deal and Medicare patients, meaning there’s fail because if you get the private sys- with—they allow $39 billion annually more pressure on them. You lower tem to fail, guess who’s going to end up to be spent for medical malpractice in- those reimbursements and there’s a having to run the whole system? surance. That’s $39 billion that could very real chance they will be in finan- Mr. ROE of Tennessee. You got it. be reduced out of the cost of providing cial trouble. Mr. AKIN. The Federal Government. health care, let alone the impacts of I yield back. What a treat. defensive medicine practice. So you’ve Mr. AKIN. Wow. Well, we’re joined by Every time we take a look at this got that 1 to 4 percent. You also have a good friend of mine who does rep- thing and we discuss it on the floor, no hospitals under pressure to continually resent a rural area from the great matter which way you poke at it, it invest in new technology because we State of Missouri, BLAINE seems to me you come to the came con- want them to have the technology to LUETKEMEYER, a gentleman that I have clusion. There’s one solution to this save lives. already a tremendous amount of re- problem: repeal this silly bill that we Mr. AKIN. Let me just cut to the spect for, and somebody who is also passed. It’s a disaster. chase for a minute here. Are you sug- going to share a couple of his ideas on Congressman THOMPSON from Penn- this whole ridiculous situation with sylvania, please join us. gesting that with this new proposal, because of the tremendous pressure this government takeover of health Mr. THOMPSON of Pennsylvania. care. Well, I thank my good friend from Mis- that’s going to be placed on those hos- pitals, that they’re basically going to Congressman. souri. Mr. LUETKEMEYER. Thank you, be starting to close? The other part of that is, what they Congressman AKIN. It’s good to be with Mr. THOMPSON of Pennsylvania. are paying, what my good friend, Dr. you. ROE from Tennessee, talked about how Well, not only am I suggesting that, I’ve had a number of visitors over the Medicare pays today less in costs. Com- but the President’s agency, the Centers last several days that have been talk- mercial insurance on the average na- for Medicare and Medicaid Services, ing about the health care bill. It’s tionally pays 130 percent of cost. And put that in writing. amazing, people are now starting to sit there is only one reason—well, there’s Mr. AKIN. So they’re saying that down and look at the bill, trying to fig- two reasons for that, but it all comes this new bill, among other things, is ure out what kind of implications it from the government. The government going to close hospitals. has for themselves, their business, pays Medicare 80, 90 cents on the dol- Mr. THOMPSON of Pennsylvania. their families, whatever it may be. lar, if we’re lucky. Medical assistance, That is correct. They’re estimating up And to follow up on the gentleman which has been expanded tremendously to 15 percent. from Pennsylvania’s comment, yester- under this bill, only pays 40 to 60 cents Mr. AKIN. Now there’s something day I had a group of rural hospital for every dollar cost. here that just seems to be ironic to an folks in, and not only is it going to af- The President’s own agency, the Cen- extreme. We passed this massive gov- fect the hospitals, it’s also going to af- ters for Medicare and Medicaid Serv- ernment takeover of health care, and fect the doctors from the standpoint ices, in their actuarial report—so the very people that the President and that the payment schedule can’t be that’s taking the folks at Medicare and his administration chose to take a look made whole so that they can make taking the brightest and the best in at and study the effect on Medicare and enough money to keep their doors terms of determining the economic im- Medicaid of this proposal are saying open. Private practices will be a thing pact of this bill, the section that talks it’s going to close hospitals; and yet of the past. You’re looking at them all about how will this impact our hos- this bill is going to hire 16,000 new IRS becoming employees of hospitals or the pitals? Right in that bill, and I’ll agents to try and enforce the plan. You government, whichever one is the sur- quote: ‘‘Medicare cuts could drive would think if you had a medical bill, viving—I guess the last one standing about 15 percent of hospitals and other you would hire more nurses and doc- here. So it’s really a challenging time institutional providers into the red’’ tors. No, we’re going to do 16,000 IRS for not only the medical professionals, and ‘‘possibly jeopardizing access’’ to agents. but also for the businesses as well. care for seniors. That’s a significant Mr. ROE of Tennessee. Will the gen- Mr. AKIN. I really appreciate you risk. tleman yield? bringing that point up, gentleman, be- My background was working in reha- Mr. AKIN. Yes. cause what you’re really saying is bilitation therapy as a manager within Mr. ROE of Tennessee. I want to just there are a whole lot of question marks rural hospitals. And most rural hos- comment on that right now before I out there. It almost seems like to me, pitals—and, frankly, underserved urban have to go on blood pressure medica- coming from our State of Missouri, it’s hospitals—in my experience, if they’re tion. almost like maybe you fall off your having a banner year, make a margin Mr. AKIN. Which is brought on by roof and you land on the ground and of about 1 to 4 percent. And out of that the bill, is my question. you know you hit pretty hard—you get 1 to 4 percent, we hope that they can Mr. ROE of Tennessee. Which is to be an old geezer like me—and you give cost-of-living increases because we brought on by the bill. kind of pick yourself up and say, I won- want them to keep the best and the Here we have something as ridiculous der if anything’s broken. You start brightest and be able to recruit and re- as hiring 16,000 IRS agents to check a reaching around to see what’s the dam- tain—and that’s a challenge when it box to see whether you have bought age. It seems like now people are kind comes to recruiting health care profes- health insurance, where if you took of asking the question, what’s the dam- sionals. that $10 billion right there, you could age going to be? You really hit the nail Mr. AKIN. Just interrupting for a solve the uninsured, and our TennCare on the head. minute, from a business standpoint, be- problems in the State of Tennessee Go ahead, I didn’t mean to interrupt cause my background was engineering could actually provide the care. Now, you. and business, when a business is run- that’s absurd when you hire govern- Mr. LUETKEMEYER. And, again, as ning at 1 to 4 percent, that’s like if you ment bureaucrats to check a box when you talk to the individuals—and each think about somebody that has to you could actually provide care for individual industry is a little different, breathe keeping his lips above the pregnant women, for the elderly on but I know the fast food industry, I was water, you don’t have much margin Medicaid, for young people. talking to a gentleman who has 25 fast there before you go into the red when The gentleman from Pennsylvania food franchises from Missouri all the you’re running at 1 to 4 percent. brings up a great point on rural hos- way to South Dakota. He said it’s Mr. THOMPSON of Pennsylvania. pitals. Typically, if you look at the de- going to cost him about $20,000 per lo- And you don’t. When you’re looking at mographics—and I live in a rural area cation. And some of his locations don’t

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00054 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.104 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2993 make $20,000 because they’re small from Tennessee talking about what thing like $150 billion. That plan is towns or smaller locations. happened when Tennessee did this going to go away, certainly. Before the bill passed, he was looking crazy harebrained idea and how it real- Mr. AKIN. If you let me just cut in not only at trying to figure out how he ly messed up the economy in the State for a second, Doctor, I’ve actually got could make some more dollars here, of Tennessee. And now you’re saying, that exact quote. Here it is. This is but he was looking to expand his oper- actually, if I remember right, is that President Obama, June 15, 2009: ‘‘If you ation. He was looking to purchase today the President is coming to Mis- like your doctor, you will be able to eight other units from another fast souri to some degree to assure people keep your doctor. If you like your food franchise owner as well as build that he’s concerned with unemploy- health care plan, you will be able to four additional ones. But now he says, ment, and yet what you’re telling me is keep your health care plan. No one will Because of this extra cost, I not only you had small business owners going to take it away no matter what.’’ And yet am not going to expand my operation, bankers—I think you had a banking this center is saying that’s not true. Go I’m probably going to have to contract background, is that right, gentleman? ahead. because I can’t afford it. Mr. LUETKEMEYER. That’s correct. b 1645 At the end of the day, he’s looking at That’s correct. half a million dollars in additional Mr. AKIN. They’re going to bankers, Mr. GINGREY of Georgia. That is the costs. He did nothing wrong. He didn’t those loans are all set up, and when exact quote, and I thank him for hav- change his business model, but all of a this thing passes, they go, Forget it, ing that. It is exactly what we all predicted on sudden now, under this bill, he’s got we’re not going to expand business that our side of the aisle, and that’s why no another half a million dollar bill that way. And so you literally have people Republicans could vote for this massive he has to figure out how to—— you know in the banking business in takeover of the health care system—a Mr. AKIN. You’re talking about a bill the State where the President is vis- sixth of our economy. It’s part of a that is actually driving the unemploy- iting today, and they’re saying, These grand scheme, of course, and that’s ment worse. It’s a bill that’s going to people came to us and said we don’t why you see people all across this create unemployment is what you’re want your money because we can’t country who are upset, certainly not saying. That’s what this small business make enough profit on it to pay you just Republicans, but Independents and owner says. In other words, you’re say- back because we passed this piece—you the grass root activists, be they Tea ing he’s making enough money as it is keep coming to the same conclusion Party patriots or the 9–12 Group or now to open additional franchises, but that—and I don’t mean to beat on this Freedom First or the Doctors for Pa- with the cost of this bill, it pushes him a little bit—the solution to this is re- tient Care. All of these folks have been under water, which says, I’ve got to peal. We’ve got to get rid of this thing. coming to the people’s House, to the close some rather than open them, and I am also joined by another good Nation’s Capitol, over the last year. there goes some more jobs. So why in friend of ours, another doctor who has They are the same folks who were the world are we doing this when we’ve been a stalwart on this from Georgia, turning out for the town hall meetings got an unemployment problem? my good friend, Congressman GINGREY. Mr. LUETKEMEYER. Well, I think We’ve just been talking about this last August to whom the Democratic it’s pretty obvious, gentleman. I think tremendous gap between statements majority, Madam Speaker, just abso- that we’re not about preventing health that the President is making, and now lutely turned a deaf ear. They came care in this bill. It’s about a govern- the gap between what the President is back, and then all they did was change ment takeover of one-sixth of our econ- saying and what this Centers for Medi- the name and the number of the bill. So I thank the gentleman for giving omy. It’s about control; they want to care and Medicaid, the center that’s me an opportunity to weigh in as a control that portion of the economy. collecting the numbers, is saying to- physician Member. There are 10 M.D.’s Again, I’ve got another friend of tally different than what the President on our side of the aisle. There have mine who owns three manufacturing is saying. I just wanted your thoughts been 31 years of experience for me and plants around the country, looking to on that because you’ve been very much many, many years of experience for my open a fourth, but with the uncertainty on top of this bill. of our economy, with bills like the Mr. GINGREY of Georgia. Madam colleagues who practice medicine. Mr. AKIN. How many of those doc- health care bill, cap-and-trade, the Speaker, I thank the gentleman for tors voted for this bill? Of those 10 doc- stimulus package, additional tax in- yielding. tors you just mentioned, how many creases that are sitting on the back I think the truth is finally coming out. I guess it’s kind of like what voted for this bill? burner right now, he says, I’m not Mr. GINGREY of Georgia. I thank Speaker PELOSI said maybe a week or going to open this business; I’m not the gentleman for asking. going to build a new manufacturing just a matter of days before the vote on The answer is nada, a big zero. That plant. ObamaCare. They finally did get that is also true for the two Republican To bring another business example passed, as we all know, by deem-and- Senators, the only M.D.’s, in fact, in here, I had a group of bankers in yes- scheme and reconciliation and every- the Senate—Dr. COBURN and Dr. terday and I asked them, I said, How is thing that you can think of. It barely BARRASSO. your money supply? Have you got plen- passed. But her famous quote was, There is expertise that we had. In the ty of funds to loan out and what is Well, we need to hurry up and do this House organization of the Doctors Cau- your loan demand? And he said, We so that the American people can find cus, of the GOP’s Doctors Caucus, there have the funds to loan out. The demand out what’s in it. And, boy, was she pro- are, in fact, 15 of us—10 are M.D.’s, and is sort of lukewarm right now, but the phetic. Nothing could be further from there are others who were health care last five guys we’ve had come in who the truth—finally. providers in their professional lives. wanted to take out business loans were And I think the gentleman from Mis- The unfortunate thing is that none of all ready to sign the papers. We had ap- souri is absolutely right: now all of a us got an opportunity to try to help. proved them, everything was fine. sudden the true numbers coming out Even though we were knocking on that They’re good customers, they’re good from the Centers for Medicare and door, it was never opened. business people, they decided at the Medicaid Services, CMS, are showing I yield back. last minute, we’re not going to expand. quite clearly that this pledge that the Mr. AKIN. There was no chance for We don’t want to do this because we’re President, then-Senator Obama, made I input or anything else. going to endanger our whole operation guess back in as late as October of 2008 My good friend, Congressman if we go down this road. So they actu- that if you like what you have you can LUETKEMEYER, you recently have been ally backed off, and as a result, look at keep it. Certainly, nothing could be elected to Congress. You come from an how many jobs we’re not providing or further from the truth for those 11 mil- out-State part of Missouri with a lot of jobs that we’re killing because of bills lion, I think, Medicare recipients who pretty conservative, but Democrats, in like this. get their Medicare coverage under the your district. Mr. AKIN. I would like to underline Advantage Plan. That’s cut 18 percent Now, what would they have thought that point. We just had my good friend a year over the next 10 years, some- if you had voted, first of all, for cutting

VerDate Mar 15 2010 04:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00055 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.105 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2994 CONGRESSIONAL RECORD — HOUSE April 28, 2010 Medicare? Next, you’ve got a brilliant of concerns. It’s at a place where the more day, tomorrow. We have a 40-day idea for a tax on wheelchairs, on med- President has been visiting, and session, and tomorrow is the last day. ical devices and on something which is they’re turning out to say, We’re not They passed a budget for fiscal year going to increase the average person’s buying this solution. 2011, which begins on July 1 in the cost to health care and which is going My good friend from Pennsylvania, State of Georgia, and it had to cut al- to force the person to go to the Federal are you getting the same kind of sense most $1 billion. Now, that has been ex- Government ultimately to get health from your constituents that there is a tremely painful, and I’m sure it’s pain- care. deep-seated concern for a plan that is ful in the State of Pennsylvania. What would they have thought of you just going to put 16,000 new IRS agents Though, I want to commend the Gov- if you had voted for this thing? on the line to try and monitor whether ernor of the State of Georgia and my Mr. LUETKEMEYER. They would you’ve done the right government colleagues in the general assembly—a have literally rode me out of town on a thing? Republican majority in the House and rail. The people in my district are con- Mr. THOMPSON of Pennsylvania. Senate. Madam Speaker, they have servatives. Whether Republicans or Yes, and not just from my constitu- made these tough cuts, and most Democrats, they are conservatives, and ents. States—I think 47 States in the they don’t believe in government take- When I get home, I am out all over Union—have this balanced budget re- overs. They don’t believe in govern- my district. My district is a great quirement as part of their constitu- ments solving problems that people can snapshot of Pennsylvania because it is tions. If they can do it, why in the solve for themselves. Regardless of actually 22 percent of the landmass of world are we sitting here with—what is party, I think they are appalled by the commonwealth State, so it is a it?—$12.8 trillion worth of debt and what is going on. fairly large piece of Pennsylvania, and with a $700 billion deficit already in Last night, for instance—and, in fact, consistently, people are very conserv- this current fiscal year? today—we have the President in my ative. Yet it’s not just the people. I hope my colleagues and anybody district. He had a closed meeting with Their State representatives are con- who might happen to be listening to us some folks versus an open meeting cerned as well. here tonight get what I’m trying to where the people could have actually I just received a resolution that is say. This is serious business, and we’re spoken to him and where they could being put forward in the Pennsylvania not doing our job up here, quite hon- have actually listened to what’s going State House by members of that cham- estly, and it embarrasses me. on, which is concerning to me because, ber. It is essentially expressing their I yield back. here in D.C., we hear more lecturing concern over this health care mandate. Mr. AKIN. Maybe we’re doing a bad than we do listening from him, and it’s You know, Pennsylvania, with the ex- job. unfortunate, because I think there are panded roles of Medicaid, is expected to I want to continue back with my a lot of people who have a lot of good have a bill of somewhere in excess of $3 friend from Pennsylvania. things to say, and a lot of information billion between 2014 and 2019. Three bil- Mr. THOMPSON of Pennsylvania. could be transferred back and forth. lion dollars. Thank you. At the end of the day, I think the I’ve got to tell you that, financially, In terms of Medicaid, I think it’s an folks in my district—and there were Pennsylvania is strapped right now. We important area for us to look at in 1,100 people at a rally last night in a were the last State to get a budget this terms of, again, the credibility of what town of 5,000, and they weren’t sup- past fiscal year, and this year’s budget the President said he was going to de- porting what the President was doing. is not going to be much better, I don’t liver, of what the Democrats say they So I think that will tell you—and this think. These are very, very challenging are going to deliver and what the re- was in an area that is conservative times for States, for a lot of States, ality is in the actions that have taken Democrat by nature. not just for Pennsylvania. place here and that will take place. Mr. AKIN. There were 1,100 people in Mr. AKIN. Could I interrupt just for Now that we have these volumes of a town that had 1,000 people? a moment and jump in there? I do have pages, we will read through them and Mr. LUETKEMEYER. Well, 5,000 peo- specifics on that very point that you’ve begin to see what the reality is. ple. made. When it comes to Medicaid, there Mr. AKIN. There were 5,000. So more I don’t know if you gentlemen were will be 18 million more people on the than one out of five were there. aware of it, but as of today, there are Medicaid program. Essentially, that Mr. LUETKEMEYER. I think that 19 States representing 41 percent of the means they will have coverage. To me, tells you that there is a lot of concern population—and our State of Missouri that means they’re going to have cards and that there is a lot of frustration. is not here, but I know they have this in their wallets or in their purses These are people who are watching on the burner to do. As of today, there which will say they’re eligible for Med- what’s going on. They don’t approve of are 19 States, representing 41 percent icaid insurance, which is a form of gov- it, and they want their voices heard. of the population, which have sued the ernment insurance. We’ve already had I think this is the key—that nobody Federal Government over ObamaCare, the discussion of the flaws of it. It pays here in D.C. is listening to these folks. which has caused Justice Briar to 40 cents to 60 cents for every dollar of They don’t perceive what is happening make the statement: ObamaCare, a cost today. I suspect that will probably with this administration as listening good candidate for review by the Su- go down. If you include 18 million more to their voices, as listening to their preme Court of the United States. people in that program, the pressure concerns, as listening to them when So it’s not just Tennessee. It’s not that that will put on it will be signifi- they point out that there are problems just Missouri. It’s not just Georgia. It’s cant. with this bill, that there are problems not just Pennsylvania. There are 19 We have a problem today. The credi- with this thought process, that there States here that are saying something. bility issue for the Democrats is the are problems with this ideology. They Mr. GINGREY of Georgia. Will the difference between coverage and ac- are being shut out just like we are as gentleman yield for just a second? cess. The fact is, today, there are 40 minority Members. As a result, they’re Mr. AKIN. I do yield to my good percent of physicians in this country standing up, and they’re doing what friend from Georgia. who will accept medical assistance pa- they can, which is to raise their voices Mr. GINGREY of Georgia. Madam tients. That’s family practice. even louder. Speaker, I thank the gentleman for Mr. ROE of Tennessee. Sixty. So it was exciting to be able to talk yielding, and of course I will yield the Mr. THOMPSON of Pennsylvania. to that group last night by conference time back so the gentleman from Penn- Sixty. phone. They’re energized, and they’re sylvania can continue to make his For specialists today, it’s 60 percent. going to be very vocal come November. point. It’s expected to go to 80 percent. Mr. AKIN. Well, I’ll tell you that I’m He is right on target in regard to So they may have coverage, but they going to be talking to one in another what is happening in the States and in really don’t have access. If you don’t hour or two not very far from my dis- the Commonwealth of Pennsylvania. In have a physician who is able to accept trict. I think they’ve got the same set the great State of Georgia, we have one you or who will see you, then we’re not

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00056 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.107 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2995 really providing them access to quality The problem with it is that people b 1700 care. from a patient standpoint don’t under- Mr. AKIN. Influence the debate with Mr. ROE of Tennessee. Will the gen- stand that, if I’ve got a card, I’ve got any facts? My goodness, people might tleman yield? health insurance coverage. Not nec- not vote for this thing. Mr. THOMPSON of Pennsylvania. I essarily. That’s what happened with Mr. LAMBORN. These are vital facts certainly will. Senator NELSON in Nebraska. He ex- to have. It really is a lot more expen- Mr. ROE of Tennessee. You bring up empted Nebraska. Then, of course, the sive. And it is going to raise taxes and a very, very pertinent point, which is, final bill that was passed put every- throw people out of the insurance they this year in America, as of the last body in, and the States were made have now than what the administra- number I saw, we were training a whole for the first 3 or 4 years of this tion was claiming. So if we had known whopping total of 600 primary care plan. this maybe it wouldn’t have passed by physicians. Mr. AKIN. Was that the cornhusker the four or five votes that it passed by. Mr. AKIN. You’re saying we are kickback? Maybe it would have failed, and we training this year 600 primary care Mr. ROE of Tennessee. That was the would have been on a whole different physicians? kickback. Exactly. trajectory right now if they had been Mr. ROE of Tennessee. This is for a open and honest about this report that country with 300 million people in it. Eventually what happens is that it will be an unfunded mandate for the the American people and us as their Also, 15 percent of the practicing phy- Representatives should have had access sicians in America today are over 65, States. They see it coming. They get it. We have a gubernatorial election to. and you know what they’re going to do Mr. AKIN. That is really frustrating, when this ObamaCare plan hits. right now in Tennessee, and it’s a hot topic. Who is going to pay this un- isn’t it, to basically give people a I’ve studied the Massachusetts plan mushroom treatment. You keep them in detail. It’s a little different than funded mandate? We’ve dealt with it for so long. in the dark, smother them in some sort what we did in Tennessee. What they of a fertilizing material, and we tell did there was to impose the mandates You’re right. This was a fiscally con- servative Democratic Governor who them these things: if you like your doc- like they have in this plan. The idea tor, you will be able to keep your doc- was to spread the costs over more peo- understood. He got it. He had to deal with it, and he asked them not to do tor, period. If you like your health care ple. Therefore, we were going to hold plan, you will be able to keep your the costs down, and we’d have fewer that, not to pass this bill. He was very much against it. health care plan, period. No one will people going to the emergency rooms. take it away, no matter what. And yet So what’s going on in Massachusetts? Mr. AKIN. Wow. This is the fourth year that they’ve We’ve been joined by a good friend of the report that you are talking about had it. It was initiated in 2006, and it’s mine, Congressman LAMBORN. makes it clear that this just flat is not like in Tennessee. You can’t spend $8 Welcome to the discussion. We’re just true. So it is a frustrating thing. And billion and not help some people. You taking a look at the fact that, you in a sense, all of these things are fall- do. There is no question about that. No know, you’d think logically: What in ing out now, and it wasn’t so obvious one is arguing that point. In Massachu- the world are these Congressmen doing, before. My good friend from Louisiana, Con- setts, with the billions of dollars that standing on the floor, railing about gressman SCALISE, please join us. have been spent, you are going to help some bill that has already been passed? Mr. SCALISE. I thank the gentleman some folks because they’ve included Well, part of the reason is there was from Missouri. And this latest smoking another 400,000-plus people. What the some truth in what Speaker PELOSI gun that’s come out is just yet one Governor is now doing is recom- said, which is that you’ve got to pass more example of why the American mending that almost all of the private the bill to find out what’s in it. We’re people are so angry about what hap- plans’ premiums be capped. still discovering all kinds of surprises. pened with this government takeover Why are they going up faster than In a way, that’s what we’ve been talk- of health care, with the way it was they thought they would? ing about tonight—things that the rammed through, with all the broken Well, they’ve added more people to Obama accountants in the Medicare/ the rolls that they’re not paying the promises. Medicaid group are analyzing in the And you can go back to the very be- costs of, and the idea was we were bill. They’re saying, Whoops. It’s not ginning when the President was a can- going to get people out to primary care going to bend the cost curve down; it’s didate. He said multiple times all of doctors and that we were going to cut going to bend the cost curve up, so it’s these hearings would be on C–SPAN so the number of people who would be going to be more expensive. Uh-oh, it’s you could actually have transparency going to the emergency rooms. going to cost jobs. Well, guess what? That didn’t hap- and find out what’s going on. In fact, Anyway, please join us. none of that transparency happened. pen. Why? Mr. LAMBORN. Well, thank you. As the gentleman from Pennsylvania None of those meetings were held on C– This is a great discussion that you all just pointed out, Mr. THOMPSON, who is SPAN. And now we see this document are having. Thanks for letting me par- going to see you? That is the problem that comes out conveniently just 2 ticipate for a few minutes. with this whole plan. The fallacy is: weeks, 3 weeks after the vote that You raised a really good point, which Who is going to see these patients? barely passed by three votes that con- Let me just make one final point. is that this report has shown that this firms what we were saying, that this Mr. AKIN. I don’t want you to make is going to be a lot more expensive, would actually raise the costs of health just a final point, but I’d like you to that it’s going to raise taxes, that it’s care for most American families at a answer this question: going to raise health insurance pre- time when we should be lowering the The Democrat Governor of Ten- miums, that it’s going to make people cost of health care, like our bill did nessee, before this bill was passed, drop out of the existing coverage they that we filed that actually would have called this the mother of all unfunded have. They will be thrown into the gov- addressed the real problems in health mandates. In other words, one thing ernment plan. This is a CMS report, care. But in fact their bill does the op- State legislators hate is when we up the Centers for Medicare & Medicaid posite, and now it’s confirmed that. here pass some piece of legislation Services, which is nonpartisan and ob- What I really want to find out is which busts their budgets. Then they jective. when did the administration know have to take the political hit for the What really is outrageous about this about this report? Was this report pro- fact that we’re fiscally irresponsible report, Representative AKIN, is that duced by CMS, a Federal agency, be- and legislatively irresponsible. they had it over at DHS before we ever fore the vote and then covered up, lit- Now, is this a budget buster for a had the final vote on ObamaCare. They erally held under wraps so that this State? were sitting on it. Their language now couldn’t become public until after the Mr. ROE of Tennessee. There is no is, Oh, we didn’t want to influence the vote, when the American people would question. In Tennessee, it’s over $1 bil- debate. once again see that yet another prom- lion. Isn’t that what a report is all about? ise by this administration on health

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00057 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.108 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2996 CONGRESSIONAL RECORD — HOUSE April 28, 2010 care was broken with their government Mr. AKIN. What you just said is so that has just now been released con- takeover? common sense and straightforward. veniently after the bill was voted on. Mr. AKIN. That’s an incredible ques- You are going to take how many more Mr. THOMPSON of Pennsylvania. tion, isn’t it, the control of the infor- people and put them into Medicare? After the vote. mation, the spin on the whole thing, Mr. ROE of Tennessee. Thirty-six Mr. AKIN. Let’s get the exact quote. the promises initially of it being a million in the next 10 years. Mr. THOMPSON of Pennsylvania. transparent process, it’s going to be on Mr. AKIN. Thirty-six million more The question is for the President, Mr. C–SPAN, everybody can watch it, and people go into Medicare—now, you President, when did you have this re- in fact everything is closed doors. don’t have to be too much of a wizard port? And why did Congress not have A couple of our doctors have left, on business—36 million people go into it? but, Dr. ROE, were you invited to take Medicare that weren’t there before, it’s As the actuaries put it: part in the drafting and putting this going to cost more money. And then ‘‘Therefore, it is reasonable to expect bill together? Were you allowed to go you are going to cut $575 billion out of that a significant portion of the in- into their meetings? I think that’s an the program. So now you are doing two creased demand for Medicaid would be important question. things: one, you are adding millions of difficult to meet, particularly over the Mr. ROE of Tennessee. I am smiling people into the program, you are tak- next few years.’’ because this actually is kind of funny. ing billions out of the program, and They continue: What happened, the President last July you are saying, hey, maybe your qual- ‘‘For now, we believe that consider- said he would go over this line by line ity of health care is going to go down. ation should be given to the potential with any Congressman that would like That’s pretty straightforward. consequences of a significant increase to go over this bill. So I wrote the Mr. THOMPSON of Pennsylvania. in demand for health care meeting a President the next day, and then was Will the gentleman yield? relatively fixed supply of health care on Greta Van Susteren three or four Mr. AKIN. I yield to my good friend providers and services.’’ In other times. We contacted the White House from Pennsylvania. words, there will be shortages of both by email, by phone, by letter. I guess I Mr. THOMPSON of Pennsylvania. I physicians and hospitals. That really was going to have to try a carrier pi- want to reach back into the past, the amounts to having less access to qual- Balanced Budget Act of 1997, where geon and smoke signals. But we never ity care. did hear one word back. similar cuts were made to the Medicare Mr. AKIN. Less access or, as you used And the Physicians Caucus, with program, because we have been accused the word, rationing. over 400 years experience, not one of us of making this things up on this side of Mr. ROE of Tennessee. Let me give was consulted in a meaningful way. I the aisle when it comes to rationing of you just one quick example. You talk practiced medicine, Congressman AKIN, services by our Democratic colleagues. about rationing of care. In the State of And they just don’t know how to deal for 31 years in Johnson City, Ten- Tennessee this year, what we did to get with the facts. They don’t know how to nessee, left my practice and got myself control of our TennCare plan was cut deal with the reality. The Medicare elected to Congress to become part of the rolls by hundreds of thousands of part B cuts have been made. Today in the debate. I was never included in any people. And this year we are going to way whatsoever. this country we ration health care limit doctor access to 10 visits per Mr. AKIN. So I guess from what you services. But we ration government year, unless something can be done in are saying, a quick summary, 31 years health care services. in medicine, you thought maybe you Medicare part B. My background was the budget, and a grand total of a hos- knew something about medicine, de- rehabilitation services, licensed as a pital pay of $10,000. I don’t care if you cided to take the huge amount of effort nursing home administrator. An older have a massive wreck and your bill is to come to Congress so you would have adult that is going in for therapy, $100,000, the State will pay $10,000. And something to say about the debate. physical therapy, occupational ther- in rehabilitative services, as of July, And in spite of the fact that you tried apy, speech therapy, you are going to right now, unless something changes everything other than carrier pigeons an outpatient clinic or into a skilled before the end of the State legislature, and smoke signals, the White House re- nursing facility because you have had there will be no rehabilitative services. fused to honor their promise to let you some type of a disease or disability If you have a knee replacement, you look at line by line what’s going on. So that disabled you that you need reha- are just going to have to rehabilitate it the logical conclusion is you are going bilitation services, did you know that on your own because the State cannot to run for President? Is that where we today the Federal Government under afford to pay for it. are going? Medicare part B rations those services? That is rationing of care going on Mr. ROE of Tennessee. No, that’s not There is a cap that is placed on how right now with the government plan. where we are going. A couple of things much therapy services you can receive Mr. AKIN. Wow. I want to go over I think that our sen- on an annual basis. Mr. ROE of Tennessee. And we just iors get, and all of us here understand I know that because, unfortunately, I voted to massively expand this plan. this. One of the things as a physician was the person that was responsible in Mr. AKIN. I have not jumped in from that bothers me about it, and Dr. my facilities to track where those pa- a personal point of view because you GINGREY was here a moment ago, our tients were in terms of that cap. And guys are all experts. I am just the poor concern is the quality of care that our when they reached that cap, we had to sucker that receives the services. I am patients are going to get. When you serve them notice and their family a cancer survivor. I happened to have take our senior citizens and you cut, members notice that they were no taken a look at the cancer survival the new CMS estimate is, $575 billion longer eligible for Medicare, for Medi- rates in foreign countries that have so- out of a Medicare plan—and remember, care part B specifically, for those reha- cialized medicine. You notice the U.K. beginning next year, 2011, we begin to bilitation services. survival rate of cancer in men is a add the baby boomers at 3 million per And you think about the people who whole lot less than it is in the U.S. year. So in the next 10 years we are wind up in skilled nursing facilities, Well, why would that be? Is it that the going to add 35, 36 million more people they are the sickest of the sick. These cancer technology is different? I don’t to the Medicare plan with almost $600 are people who have no other place to think so. billion less money. go for the type of compassion and care I think the deal on cancer is if you’ve Let me tell you three things that will that they need to receive. Yet there is got it, you want to get treated as quick happen. One, you will have decreased an example of how we ration already. as you can. So what happens in the access to your doctor. Two, you will Going forward, I want to read from a U.S., you don’t have the same waiting have decreased quality of care because report from the actuary on this Medi- line. Now, you start putting those you can’t get to your doctor. Number care part B so we have that language. waiting lines in and it starts to affect three, it’s going to cost you more This is according to CMS, the Centers your statistics of what’s going to hap- money. The seniors understand that. I for Medicare and Medicaid Services. pen on a disease. That’s what we talk understand that. And the American Mr. AKIN. This is part of that same about when you all of a sudden hear people understand that. report that we were just talking about your doctor say, oh, by the way, you’re

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00058 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.110 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2997 doing great, Blaine, but little detail, Let’s speak precisely about one deal, was saying. Now, Mr. Tourre is the in- you have cancer. That kind of gets the deal called Abacus. And in Abacus dividual who was selling these syn- your attention. And you think, I better their clients were many people. They thetic collateralized debt obligations. get that dealt with right away. They had a client named John Paulson, the He was the one that was doing the say, well, that’s just fine, but you are biggest hedge fund individual in this work on behalf of Mr. Paulson. So what going to have to wait for, you know, country. He wanted Goldman to sell did he say? He said, ‘‘The whole build- whatever it is. You are going to have mortgage-backed securities that were ing is about to collapse anytime now.’’ to wait 6 months to get treated. You bad. They were subprime. And he pre- Those were Mr. Tourre’s words. He de- got melanoma, that’s probably not a cisely wanted them to sell them to scribed himself in an e-mail as the only real good idea to be waiting 6 months. many of their clients, and he was going potential survivor, the Fabulous Fab, I have a good friend that’s a doctor to short them, meaning he was going standing in the middle of all these friend of mine, Steve Smith. He has to bet against them. complex, highly leveraged, exotic told me that on these kinds of things, trades he created without necessarily you just don’t want waiting lines. You b 1715 understanding all the implications of just don’t want socialized medicine. But it just doesn’t end there. He spe- these monstrosities. He then went on His advice to me is the same as the cifically designed the package. He to say in an e-mail in 2007, he described doctor friends we have down here, just handpicked the mortgages that were the mortgage business as ‘‘totally dead repeal this piece of junk. That’s what going to be in the package. And then and the poor little subprime borrowers he is saying. Goldman sold them to unsuspecting would not last too long.’’ Yet 2 months My good friend from Missouri, Con- buyers. And lo and behold, what hap- later, he was boasting that he contin- gressman LUETKEMEYER. pened? What happened was Mr. Paulson ued to dump some of the worthless Mr. LUETKEMEYER. I thank the made a billion dollars, and the other mortgage securities on, and I quote, gentleman. clients of Goldman Sachs lost a billion ‘‘widows and orphans that I run into at I think at the end of the day every- dollars, and Goldman Sachs walked the airport.’’ body understands now what’s in this away with $50 million of fees that were This is a man of integrity and hon- bill. And it’s not something that’s good paid to Goldman Sachs by Mr. Paulson. esty. I would suggest that is not the for our country, it’s not good for our Now, that is the basis of the SEC com- case. people, it’s not good for our business plaint filed against Goldman Sachs for And, finally, in an e-mail to his climate. It’s impacting everybody in a civil fraud. girlfriend, he called his Frankenstein negative way. And I think the only al- So what is civil fraud, you might creation, these synthetic CDOs, a prod- ternative is to replace and repeal it. I ask? Civil fraud is, It shall be unlawful uct of pure intellectual masturbation, think that at some point we are going for any person in the offer or sale of the type of thing which you invent tell- to be able to do that. And I think it’s any securities to obtain money or prop- ing yourself, well, what if we created a imperative that now that we have seen erty by means of any untrue state- thing which has no purpose, which is what’s in it, and again have another re- ments of a material fact or any omis- absolutely conceptual and highly theo- port that’s come out that shows it’s sion to state a material fact necessary. retical and which nobody knows how to going to cost more than anticipated, So the question is, was it a material price? That’s Mr. Tourre, who yester- this thing is a boondoggle. It’s got to fact that Abacus was made up of these day when he testified said, and I quote, be replaced, it’s got to be repealed. mortgage-backed securities, 90 percent ‘‘I firmly believe that my conduct was This can’t continue because it’s of which were what are considered no correct.’’ That is Mr. Tourre. That is going to lead us over a cliff, as the gen- doc mortgages? That means there was Goldman Sachs. tleman from Tennessee has talked no documentation that the people that I would like to now ask my good about TennCare. The Massachusetts got those mortgages could pay for friend, JOHN YARMUTH from Kentucky, plan continues to go over a cliff as them. There was no documentation of to join me in this colloquy. well. We are headed over that cliff with Mr. YARMUTH. I thank the gentle- income, no documentation of debt. our national health care as well. woman for yielding. Mr. AKIN. Thank you very much, Mr. Those were no doc loans. And there was It’s a great pleasure to be here today Speaker. I appreciate my colleagues a history of no doc loans going back. to discuss with the American people joining me here tonight and for being a So it was fixed from the very begin- the fundamentals of the problem that part of an important discussion. It is ning. we’re trying to deal with with the Wall an ongoing story. They were arranged by John Paulson, Street reform legislation now working a material fact that was not disclosed f its way through Congress. to the other buyers, and it was not dis- I had the privilege in the last Con- THE NEED FOR FINANCIAL closed to the other buyers that John gress to be a member of the Oversight REFORM Paulson created this because he wanted and Government Reform Committee The SPEAKER pro tempore (Mr. to short them, because he wanted to when all of this was unfolding, in the GARAMENDI). Under the Speaker’s an- bet against them. So if there ever was fall of 2008 when for the first time peo- nounced policy of January 6, 2009, the a case of fraud, I would argue that that ple were getting a sense that Wall gentlewoman from California (Ms. was a case of fraud. Yet Goldman Sachs Street was essentially operating like SPEIER) is recognized for 60 minutes as says, ‘‘Our very first priority is that an unregulated casino. It was essen- the designee of the majority leader. our clients come first.’’ tially the Wild West of finance. And my Ms. SPEIER. Mr. Speaker, I am Let’s move over here to No. 14: ‘‘In- economics training, as skimpy as it joined this evening by a number of col- tegrity and honesty are at the heart of may have been, taught me that the fi- leagues who are going to give us, I our business. We expect our people to nancial system in our capitalist form think, the reasons why financial re- maintain high ethical standards in ev- of government, in our free market, is form is a must in this country. And the erything they do, both in their work supposed to help with the allocation of biggest poster child for why we have to for the firm and in their personal capital in its most productive way so do financial reform really is in Gold- lives.’’ that capital finds its most productive man Sachs. Well, there is one gentleman who has uses. And what we found looking at So we thought we would start our worked for Goldman Sachs that they these incidents as they unfolded back discussion tonight by looking at the referred to as the Fabulous Fab. He’s a in 2008 and as we have seen even up principles that Goldman Sachs has pro- gentleman by the name of Fabrice until the last couple of weeks is that moted on its Web site. There are 14 Tourre out of their office in London. the giants of the financial system in principles that Goldman Sachs has pro- Well, I wouldn’t suggest to you that this country, Goldman Sachs, the other moted on its Web site. The very first, Mr. Tourre is fabulous. I would suggest major Wall Street financial institu- and one I would like to start out with, to you that he is fraudulent. tions, weren’t guiding capital to its is ‘‘Our clients’ interests always come In some of the e-mails that the Sen- most productive use. first.’’ Well, let’s talk about their cli- ate Committee on Investigations was They were guiding capital, hoarding ents’ interests coming first. able to collect, this is what Mr. Tourre capital, accumulating enormous sums

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00059 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.111 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H2998 CONGRESSIONAL RECORD — HOUSE April 28, 2010 of capital, in some cases essentially So while we worry about what Gold- sell you. Unfortunately, other parts of creating capital out of the ether, and man has done, and I think most of us, Goldman Sachs had assembled this deploying it for their own very greedy most Americans, are outraged at, if for product with the intention that it use. And I know that when we have had nothing else, the ethical shortcomings would fail, and these other people were arguments both inside of Congress and of the techniques that they have been not informed of that fact and pur- out over the last few years, we say, using, we have to ask ourselves as well chasing them, although Goldman well, why would government allow what good does Goldman Sachs, what would say they didn’t have an obliga- these institutions to get so big that good does Bear Stearns, may it rest in tion to tell people that they had de- they can wield this kind of power? And peace, and Lehman Brothers, what signed it to fail, working with someone the answer we always got from the good do they do for the American econ- who was betting it to fail, and that Goldman Sachses of the world and from omy? Because I think the evidence is Goldman itself was betting on it to others was, well, we need to be that big pretty strong that, in fact, they have fail. so we can compete in the global econ- been extremely detrimental to the But the bottom line of all is it’s a omy. American economy and to the average huge amount of churning on things The question they have never an- American in their activities over the that don’t help the economy, help the swered to my satisfaction and I don’t last few years. American people, help us compete in think to the congresswoman’s satisfac- Ms. SPEIER. Reclaiming my time, the world. tion and certainly I don’t think to the you mentioned that they paid a tax b 1730 American people’s satisfaction is com- rate of less than 1 percent. The average peting for whom? For what? To what American pays a tax rate of what? Goldman has gone to the point in purpose? Because if we allow, as a soci- Mr. YARMUTH. Well, actually, as we 2007, their gambling income—excuse ety, companies to get that big where heard just a few weeks ago, about 47 me—their financial services, invest- they can threaten to bring down the percent of the lowest income earners in ment, self-proprietary, et cetera stuff, entire economy and they don’t produce America pay almost no income tax. whatever you want to call it, was actu- any good for society at large, then why They do pay a significant employment ally five times larger than their invest- do we care if they can compete? tax, Social Security and Medicare. In ment banking activities. So 20 cents of Whom are they competing for? Are fact, every American working pays 7.5 every dollar at Goldman was going into they competing just for their stock- percent combined Social Security and productive investment. The other 80 holders? In the case of Goldman, are employment tax. Income tax will vary. cents was going into gambling on they competing just for their partners I think the average Federal income imaginary products. It’s a lot like fan- who take home $13 billion, $15 billion tax, people making $40,000 to $50,000 a tasy football. A lot of Americans can worth of bonuses each year? That’s the year, was in the 3 or 4 percent range, understand that. Imagine if they took question I think that is at the core of which is still three or four times what out and created synthetic products this debate and has to be as we move Goldman Sachs was paying. And, of that related to fantasy football. Maybe forward trying to decide exactly what course, once you get to higher levels, some Americans can understand that. policies we should adopt. the Federal income tax is somewhere— Recently, one firm actually proposed, In Goldman’s case, as I mentioned, I I think the average American making a Cantor Fitzgerald subsidiary, pro- think in 2009, the total bonuses they more than $250,000 a year pays an aver- posed to do futures on movies. In L.A. have allocated for their partners, their age of 23 percent. So that’s just some- they would produce a movie and then principals, and their employees is body making $250,000, $300,000 a year, the people on Wall Street would bet on something like $13 billion. Do you not the billions and billions of dollars what the opening weekend was going to know how much their Federal tax rate that Goldman Sachs has made. They return, and they would bet on how was? It was .9 percent, .9 percent. pay 23 percent on average more than much money it might make. This be- Now, virtually every American pays Goldman Sachs paid. came of such concern to producers in a higher tax rate than that. Goldman Ms. SPEIER. Thank you. L.A. because they thought, My God, if Sachs paid less than 1 percent of its net I now yield to my good friend from they start out shorting us right away, income in taxes, while its principals the State of Oregon, PETER DEFAZIO. that’s going to depress our investment and its employees, its top earners, Mr. Mr. DEFAZIO. Thank you for yield- potential for the movie, et cetera, et Blankfein and others, were making ing. cetera. So in the Senate bill they’re ac- millions upon millions. I think the American people are a bit tually banning this sort of derivative. So we have to say, does society ben- confused as to what is really going on So they have banned two kinds of de- efit from having Goldman Sachs here? here. And, you know, it’s a lot like the rivatives. One has been historically No. I think we can make a pretty Humphrey Bogart movie: What’s going banned for some reason lost in the mist strong case that over the last couple of on here is gambling, plain and simple. of time. Onions, you can’t do them on years, this country has suffered enor- It would be one thing if these so- onions. And the second would be mov- mous damage, and not just in New called investment banks like Goldman ies from Hollywood. Otherwise, you can York but throughout the country, Sachs were lending into the productive bet on anything. You can bet on the throughout Main Street, with defaults, sector of the U.S. economy, if they weather tomorrow as a derivative prod- mortgage, collapse of banks, all sorts were lending to people who had good uct. You can market it on Wall Street, of things. The enormous problems with ideas to produce products and goods, et cetera, et cetera. AIG and its cost to the taxpayers when employ Americans and help us compete This is not a productive activity. I we had to bail them out, largely attrib- in the world economy. But they are not would suggest a simple way to deal utable to the type of activity that doing that. In this case, they weren’t with it. One thing that’s good is the Goldman and others were involved in. even helping to package and move Senate has actually, for once, proposed So as we look through Goldman’s mortgages off of people’s portfolios and something useful, which is to say that business principles, and I think you someplace else. They were merely if Goldman wants to have a proprietary have done an excellent job of pointing mimicking with what are called syn- trading section and trade in these gam- out some of the ironies, to use a gentle thetic collateralized debt obligations, bling products, that they couldn’t be term, some of the ironies involved in packages of bad or potentially bad insured by the FDIC or draw money those principles, we have to ask our- mortgages to bet on, for this one hedge through special windows at the Treas- selves, what are Goldman’s principles fund to bet against and make a billion ury. We should not subsidize their ad- for being part of the American econ- dollars. diction to gambling. The taxpayers omy? Where do we show anywhere in But then, of course, unfortunately, should not subsidize it. That would be there that they want to help our econ- other parts of Goldman Sachs, appar- a good step. omy prosper? No. This is for their ently unbeknownst to them, I mean, in But the other thing we could do shareholders, their principals, and totally good faith, went to clients of would be to put a very modest tax on their clients who are among the Goldman Sachs and said, Hey, we’ve this gambling and to say, Look, for le- wealthiest individuals in the world. got a good product here we’d like to gitimate hedgers, airlines who want to

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00060 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.112 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H2999 hedge against fuel price increases, lost so much over the last few years. saying, Well, you know, maybe it may farmers who are worried about failure The people who have lost their homes, be a little teeny bit unethical, but we of the corn crop, those people. We al- lost their savings, lost their jobs, lost did not have a duty. When you have a ready distinguish between hedgers and opportunities. Children cannot go to slogan like our clients’ interests al- speculators over at the Commodity Fu- school. They can’t get loans. Yet, still ways come first, it seems to me that tures Trading Commission. folks sitting there from Goldman al- you would operate on the highest level Let’s just say hedgers would be ex- most acting as if, You know what, of integrity, transparency, clarity, and empt from the tax. But speculators, don’t even bother asking us about what accountability, end of case. those who have no skin in the game, we do. It’s our business. But that’s not what happened here. aren’t producers, or even worse, are not Well, it’s not just their business be- And so you’re absolutely right. We even actually involved in any way as a cause it affects almost every single have got to make sure that we shine counterparty but just merely creating American, the types of things they do. some light on this system, that we synthetic things to bet for or against, That’s why 60 Members of this Con- have the kind of reform that we are they would pay a very modest tax. If gress wrote to the SEC—and I’m very trying to get through here. And I know the tax was approximately two-tenths glad to see Mary Schapiro taking over that there are people who are saying, of 1 percent—that’s .0002—on each of the SEC and doing what needs to be Well, maybe too much is being done. I these, we could raise somewhere be- done—and said to them, Look, we’re just want to take one more minute to tween $30 billion to $50 billion a year to glad that you’re bringing the civil ac- talk about that. help pay for some of the damage they tion, but we also want you to look at It seems to me that if you want peo- have caused to our economy. other deals similar to this one because ple to invest in something, you want It might not raise that much because we want to get to the bottom of this. them to understand and believe that it might rein in some of this specula- And we also said that if any money was it’s not rigged before they get there. I tive activity, which I think would be a paid from AIG to Goldman and Paulsen don’t know how many people—and desirable impact; but I would suggest and it was ill-gotten, we want our that’s basically what you’re talking that would be one way to deal with this money back. But we said another about—How many people are going to very, very reckless activity. thing. We said that if there appeared to go into a card game believing it’s I congratulate the gentlelady for be criminal activity, we wanted it re- rigged before they get there. They’re having this hour to highlight these ferred to the Justice Department so just not going to do them, that the concerns and the contradictions that that they could take appropriate ac- odds are against them big time. we see in the business principles versus tion. They’re not going to do it. what we all saw going on. Now let me be clear: I live in Balti- This shining of the light, this trans- With that, I’d yield back. more. There are people in my neighbor- parency, would be good for the market, Ms. SPEIER. I thank the gentleman hood in the inner city of Baltimore for Wall Street. Americans would feel for his great commentary. I now would that if they stole a $300 bike, they’re comfortable and others would feel com- like to recognize from the State of going to jail, period. A $300 bike. And fortable in investing in Wall Street. Maryland (Mr. CUMMINGS). the reason why it’s so important to me And therefore, in the end, in the end, Mr. CUMMINGS. I want to thank the that we look at all these other trans- we have a solid, strong Wall Street gentlelady for holding this hour. And I actions and try to figure out if there that people feel comfortable about in- want to thank her for yielding and I was criminal activity is because I want vesting their hard-earned money. want to thank all my colleagues for the folks on Wall Street to be treated Again, I want to thank the gentle- being here tonight. As I listen to my like the folks on Madison Avenue in lady. I yield to the gentlelady. colleagues this evening, I could not Baltimore. And so I think what we are Ms. SPEIER. I thank the gentleman help but think that the American peo- doing here is so important. I think that from Maryland, who’s been passionate ple have lost in at least two ways. One, we are at the tip of an iceberg, but we about trying to get to the bottom of they have lost with regard to money have got to chisel down. AIG. I think it’s important to point that they could have been making on The gentlelady, when she first start- out—and this may curl the hair on top the market. Two, they have lost be- ed our discussion, she said reform is so of your head, my dear friend—but on cause the so-called swaps that were important that we’ve got to deal with top of everything else, Goldman Sachs’ purchased, these insurance—what we reform now. I think when you look at directors, the CEO, Mr. Blankfein, all could call insurance, for those people what has happened in this deal as it have insurance for any omissions or who may be listening, Mr. Speaker— has been so wonderfully and accurately conduct that they may become the sub- some of that money, particularly the described by my colleagues, we under- ject of any inquiry for. If they commit ones that we’re dealing with right now, stand why it is so important that we any civil fraud or criminal fraud, they were bought from AIG. When these have transparency. We have got to have insurance for that. You won’t be bonds went down, AIG ended up paying. have it. surprised probably to know who their Folks may be asking the question, Ms. SPEIER. Will the gentleman insurance is with. What does that have to do with me? yield? Mr. CUMMINGS. Please don’t tell Well, the fact is that when those bonds Mr. CUMMINGS. Yes, I yield to the me. were paid off, those are the kinds of— gentlelady. Ms. SPEIER. None other than AIG. because they were paid off from AIG, Ms. SPEIER. When you speak to the And who owns AIG today but the just like an insurance policy would term ‘‘transparency,’’ do you think American people. pay—a lot of American money had to that Goldman would have sold a dol- Mr. CUMMINGS. The American peo- go into AIG to keep it propped up—to lar’s worth of those synthetic ple. the tune of $180 billion, with a B. collateralized debt obligations if people Ms. SPEIER. The U.S. taxpayers. I cannot help but think about yester- knew that their other client was short- Mr. CUMMINGS. To the tune of $180 day as I listened to Fabulous Fab— ing them and that 90 percent of them billion. Ms. SPEIER. Fraudulent Fab. were no-doc loans that were destined to Ms. SPEIER. Correct. What is even Mr. CUMMINGS. Fraudulent Fab. As fail? more disconcerting, and we will find he talked, I heard no remorse. I heard Mr. CUMMINGS. No, I really don’t. that out in the upcoming weeks, just folks basically saying, This is the way Goldman, they said our slogan is: Our like the synthetic CDO known as Aba- we do it, this is how we do it, and al- customers always come first. cus, it appears that Mr. Blankfein and most implying that it was none of our Ms. SPEIER. Very first principle. Goldman Sachs also sold to AIG more business, none of the business of the Our clients’ interests always come of the CDOs that were rigged. Senate or the House. The sad part first. Mr. CUMMINGS. Again, you make about it, as I sat there, I really wanted Mr. CUMMINGS. Our clients’ inter- the case for why we have to have re- to almost come through the television ests always come first. If that were form. We have to have reform and act screen because I thought about all of truly their goal, they would have put with the urgency of now, because every the people who have lost so much, have out that information. They seem to be moment that goes by, I’m afraid

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00061 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.114 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H3000 CONGRESSIONAL RECORD — HOUSE April 28, 2010 there’s going to be another Goldman record unemployment with roughly 15 tween commercial and investment Sachs deal. By the way, others are million Americans currently out of banking that was first established in watching all of this in the market. And work. Obviously, much needs to be that Banking Act back in 1933. The there may be others doing the same done to deal with this and correct it. original bill was put in place as a re- things. Wall Street recovered rather quickly, sponse to the Great Depression and re- Ms. SPEIER. Clearly. interestingly enough, while the jobs sulted in decades of economic stability Mr. CUMMINGS. So the urgency is and housing market remain on life sup- and prosperity. Throughout the 1990s, now. We’ve got to act on this now. I’m port. It seems that Wall Street was the banking lobby worked hard to un- hoping that that will happen. We have able to recover quickly because it dermine the Glass-Steagall Act, and it done our part. Then we’ve got to wait knew the housing bubble was on the was ultimately overturned in 1999. for our brothers and sisters on the verge of bursting and hedged their bets Ms. SPEIER. Will the gentleman other side to do theirs. Again, we just appropriately. And they knew that the yield? cannot continue to wait. housing bubble was on the verge of Mr. HINCHEY. Yes. Ms. SPEIER. I thank the gentleman. bursting because of the subprime mort- Ms. SPEIER. You make the case for Mr. CUMMINGS. I want to thank the gages that they manipulated into the this great poster that shows the cracks gentlelady for yielding. context of investing operations. They in Wall Street. And back in 1996, the Ms. SPEIER. I now would like to in- knew what they had done, and they Federal Reserve reinterpreted the vite my good friend from the State of knew what was happening as a result of Glass-Steagall Act several times at the New York, Congressman HINCHEY, to what they had done. behest of Wall Street, eventually al- engage. As we all know, the Securities and lowing bank holding companies to earn Exchange Commission recently made up to 25 percent of their revenues in in- b 1745 claims that Goldman purposefully cre- vestment banking. Mr. HINCHEY. Well, thank you very ated an investment, a collateralized But you know what? That wasn’t much. I want to express to you my ap- debt obligation called ABACUS 2007– enough for them. They then came back preciation for you engaging and initi- AC1, that was designed to fail. The SEC in 1999 and repealed the Glass-Steagall ating this discussion here. It’s some- suspects that a Goldman Sachs em- Act that worked for over 60 years in thing that’s very important; it’s some- ployee—and probably not just one— this country, brought about, as you thing that needs attention, and it cer- Goldman Sachs employees purposefully pointed out, because of the Great De- tainly needs relief. As I think we all misled clients into buying investments pression that created those firewalls know, we are facing—involved in one of that were not only worthless but were between investment banking, commer- the most serious economic crises in the almost guaranteed to have a dev- cial banks, and insurance companies. history of this country. We haven’t had astating effect on the great economy. And then in 2000, what was the next an economic downturn as serious as I have signed my name onto two let- thing that happened? The next thing this one since the Great Depression, ters that are aimed at expanding the that happened in 2000 when Brooksley which happened in 1929 and ran through investigation of Goldman Sachs. One of Born, who was then the Commodity the thirties. those letters is to the Securities and Futures Trading Commission Chair- One of the most interesting things Exchange Commission Chair Mary man, said, We should regulate deriva- about the way in which this economic Schapiro and the other to Attorney tives, and our friends in the White recession has come about and con- General Eric Holder. Goldman Sachs House and around basically said, Oh, tinues is the failure, in fact, in many deserves to be thoroughly investigated no. We can’t. We passed a law that ba- ways, the refusal of responsible people for this suspicious activity, but we sically prevented Congress from regu- to understand what happened back in need to keep in mind that they are not lating derivatives. Those derivatives the 1930s and the relationship between solely to blame. are the things we’re talking about what’s happening now, the kinds of cir- It’s not just Goldman Sachs that was today, these credit default swaps that cumstances that caused that Great De- responsible for this problem. Through- brought AIG down; these collateralized pression similar to the circumstances out the 1990s, there was unprecedented debt obligations, synthetic or other- that are causing this deep recession deregulation of the banking sector, wise, that brought the entire financial that we are experiencing now. And it’s which set the stage for Wall Street to services industry down. only a recession because we have So- run amok. Safeguards put in place in And as you can see, the other cracks, cial Security now, which went into the 1930s to deal with that Great De- the regulation that was created in 2004 place after the Depression in the 1930s pression were thrown out, and that is that took away the leverage cap of 12 as a means to sort of fight against that just fascinating how intentionally that to 1, and as a result, where were they Depression, and a number of other was done. Safeguards put in place in leveraged at but at 30 to 1, the Lehman things which were engaged in to try to the 1930s, thrown out and unraveled by Brothers, the Goldman Sachs of the deal with it effectively. both Congress and the Federal Reserve. world. There are a lot of people who are try- As they let this happen, some of us And then again in 2005, a very inter- ing to eliminate some of those effective tried to stop the deregulation, but we esting rule that basically exempted things. In fact, we had a President re- were in the minority. We should not stockbrokers from the Investment Ad- cently come in and say that we should delay in getting commonsense reforms visers Act. Do you know why? Because privatize Social Security. I think we passed that will increase consumer pro- they didn’t want to have a fiduciary could imagine what might have hap- tections, regulate hedge funds and the duty to their clients. They only wanted pened if we had privatized Social Secu- derivatives market. And let us not for- to have a duty to themselves. rity and how much worse this eco- get to include a stronger Volcker Rule. Mr. HINCHEY. That is exactly right, nomic recession would be today if the The Volcker Rule, interestingly and I very much appreciate you put- Social Security system had been enough, puts an end to an investment ting that form up there, Cracks in Wall privatized, and it then certainly would bank’s ability to conduct proprietary Street. It’s a very interesting presen- have been lost. trading with their bank deposits. This tation and a very accurate presen- So this is a serious issue, and it’s an proposal also prevents bank holding tation of the set of circumstances that issue that needs financial regulatory companies from housing hedge funds or were put into play over that period of reform; and that need for financial reg- private equity branches. The over- time beginning in 1996 with this Con- ulatory reform has never been more arching goal is very similar to what I gress here trying to manipulate the sit- evident for us in the context of our tried to achieve when I submitted a uation. lives and especially our experience here Glass-Steagall amendment to the I remember how many of us fought in this Congress. We are still feeling House financial regulatory reform bill. against those things. We fought the effects of that meltdown, which Restoring the Glass-Steagall Act— against them. We voted against them. began in 2007 and then hit hard in 2008 which of course was passed back in the And, of course, we voted against that on Wall Street. And now, 2 years after context of the Great Depression—would elimination of that Glass-Steagall Act that 2008 meltdown, we still have put back in place the clean division be- because we understood very clearly

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00062 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.115 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H3001 that the elimination of investments, by comments and his recommendations to up until the early 1990s—we had over allowing investment banks to work our colleagues in the other House. 1,000 investigators in financial fraud at closely together with commercial I now have the great pleasure of join- this Department of Justice. After 9/11, banks and take issues like mortgages ing in colloquy with my good friend that was reduced to about 75; and, and manipulate the mortgages into from the State of Ohio, the great and therefore, we were totally unequipped subprime mortgages, and sell mort- passionate MARCY KAPTUR. at the Justice Department to deal with gages to people who were not able to Ms. KAPTUR. I thank you very a lot of the wrongdoing that was pro- afford them, and to continue to manip- much, Congresswoman JACKIE SPEIER, ceeding through those years and those ulate that mortgage system and to in- for spearheading this effort this decades. clude that mortgage system into large evening and for the incredible work b 1800 investment packages, and those large that you do for this House and for our investment packages which were weak country and for your superior knowl- I have a bill, H.R. 3995, to close that and really didn’t deserve nearly the edge of the financial markets and the gap and increase the number of inves- kind of attention or the funding that banking industry. America really needs tigators. Quite frankly, I have a deep they received were successful based you now more than ever, and I thank concern about some of the self-serving upon—largely based upon, at least, the your constituents for electing you individuals that may have been rep- fact that they had mortgages within here. You are the right person at the resenting private interests rather than them. And people had the idea that, right time and the right place, that’s the public interest as they were con- Well, mortgages are secure. Anyone for sure. ducting their business through Gold- who has a mortgage is going to pay Ms. SPEIER. I thank the gentlelady. man Sachs and other firms. that mortgage off. Hardly anybody Ms. KAPTUR. It’s a pleasure to join I would like to place on the record, misses their mortgage payment. you tonight to place information on for example, the following: Joshua And it was the intentional manipula- the RECORD related to Goldman’s be- Bolten, who was President Bush’s chief tion of the mortgages in those invest- havior as well as other institutions of staff in the White House at the time ments which led to, to a great extent, that have caused our country so much that the markets melted down, had ac- the collapse of this economy and the harm. And as others have mentioned, tually been the person who ran Gold- collapse that we’re experiencing now on April 16, the Securities and Ex- man Sachs’ London office, and yet then and all of the difficult circumstances change Commission announced that it he came to be President Bush’s chief we have to deal with. was filing a civil lawsuit at long last budget officer and then went to be Now, a lot of these things need to be against the big speculator Goldman chief of staff at the White House at the addressed. Some of them have been ad- Sachs, accusing it of committing fraud, key moment when decisions had to be dressed in the context of legislation but it was a civil filing. made about how to handle the financial that we have passed. The Senate is now We know that what happened on Wall markets struggling with that legislation, trying Street in the financial markets, the In the current administration, it is to pass something similar to it so that commodities markets, and in the hous- no secret that the chief of staff to the we could agree on something that is ing markets led to enormous financial current Secretary of the Treasury, going to begin to modify this dire situ- turmoil in our country and, ulti- Mark Patterson, had come directly ation that we’re dealing with. But the mately, this great economic crisis that from Goldman Sachs as its top lob- fact of the matter is there is more that we are facing. And the American people byist. In addition, Neel Kashkari from we’re going to have to do, not just the want answers. They want to know who Goldman Sachs had gone to handle the situations that are pending right at did what, and they ultimately want TARP. I think this goes far beyond this moment. Even though they are justice. party, this has to do with America and critically important and they need to A few days after that filing, over five standing up as patriots for this country be dealt with and completed, there is dozen of our colleagues signed on to a and asking the question: Isn’t that too more that needs to be done. And what bipartisan letter sent to the Attorney much insider dealing? How do you needs to be done, including other General on April 23, and our letter know that they are really representing things, is the prevention in the future called upon the Attorney General to their client’s interest or the public in- of the manipulation of mortgages and terest when they are personally in- the other kind of investment manipula- begin a criminal investigation and volved both on the private side and tion that took place in the context of prosecution. One of our concerns continues to be then on the public side like a very fast this molding together of commercial that if, in fact, a civil case is filed by revolving door? and investment banking. We need honest banking in this coun- the SEC, could it be possible down the I will also place on the Record to- try. We have had it for most of the road that some of that evidence could night the fact that since the crisis time, and most of the bankers in this be inadmissible in the event there is a started the six institutions in addition country are honest and strong and safe criminal proceeding. So we urged At- to Goldman Sachs, that includes and secure and working in the best in- torney General Holder to proceed Citibank and Wells Fargo, HSBC, Mor- terests of the people in their commu- quickly, and today we delivered—in ad- gan Stanley, all these big banks now nity. But there are exceptions to that, dition to that letter—signatures from control two-thirds of the deposits and and those exceptions can be deep and over 140,000 Americans who have been GDP of this country. Six institutions. dire, and we’ve seen the results of it in signing up on an e-petition to the At- They are raiding equity out of our the context of this economic situation torney General urging the same. local communities. They are just sim- that we are dealing with now. It needs We thank the organizations Progres- ply too powerful and they are too irre- to be corrected, and I deeply appreciate sive Change Campaign Committee and sponsible. They are not doing loan you for bringing this subject up in this MoveOn.org for alerting citizens across workouts in places I come from. I way and for bringing attention to the this country that they don’t have to be thank the gentlelady for calling into issues that you have presented in the neutral in this fight. They can let their question their business principles as context there next to you. views be known to the Attorney Gen- you so ably put on the floor here as to So thank you very much. It’s a great eral of our country about the impor- who their interests really are. pleasure to be with you in this context, tance of criminal proceedings. That is my bottom line question: and I sure hope that the opponents of What makes that so important is the Who do these people represent? They this bill in the Senate are going to get fact that the Attorney General’s office seem to be getting bonuses at extraor- the kind of pressure that they need in the Department of Justice has been dinary levels, in the millions of dollars. from sensible places and sensible peo- understaffed throughout the last 10 When people in my district have fallen ple, conscientious people, to make sure years, unable to do the type of finan- off unemployment benefits, these com- that they stop blocking it. We need to cial crimes investigations that are nec- panies like JPMorgan Chase do not re- get these things passed. essary. Back in the savings and loan turn phone calls to do loan workouts. Ms. SPEIER. I thank the gentleman crisis at the end of the 1990s and early Wells Fargo, they are totally irrespon- from New York for his well-placed 2000s—or I should say at the end of 1989 sible. They have too much power and

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We ask assurance from you that the holding this Special Order this evening U.S. Department of Justice is closely look- Cox as the head of the SEC, you will and for giving us a chance to place on ing at this case and similar cases to further not be surprised to know that there the RECORD the letter that we sent to investigate and prosecute the criminals in- was an 80 percent reduction in enforce- the attorney general asking for crimi- volved in this, and other financially fraudu- ment actions at the SEC and 60 percent nal proceedings, and also the names of lent acts. Furthermore, if the DOJ is not reduction in disgorgement actions at the Members of Congress who have currently looking into this particular case, the SEC. signed on this letter. I urge other col- we respectfully ask you to ensure that the So no surprise that we had an SEC leagues who wish to join us to please U.S. Department of Justice immediately that was ill-equipped, and also a dif- open a case on this matter and investigate it ferent perspective. It was not there to give us a call. I thank you for allowing with the full authority and power that your me to place this information into the agency holds. The American people both de- protect the American people but to RECORD. mand and deserve justice in the matter of allow business to flourish. And the CONGRESS OF THE UNITED STATES, Wall Street banks whom the American tax- business that flourished was much like Washington, DC, April 23, 2010. payers bailed out, only to see unemployment what Goldman Sachs was doing where Hon. ERIC HOLDER and housing foreclosures rise. they actually put AIG in some of these U.S. Attorney General, U.S. Department of Jus- This matter is of deep importance to us. As synthetic collateralized debt obliga- tice, Washington, DC. you may know, H.R. 3995, the Financial Cri- tions that they knew were going to DEAR ATTORNEY GENERAL HOLDER: The sis of 2008 Criminal Investigation and Pros- U.S. Securities and Exchange Commission fail. ecution Act, has been introduced, which au- Lehman Brothers, Goldman Sachs (SEC) announced on Friday, April 16, 2010, thorizes you to hire more prosecutors, Direc- that it had filed a securities fraud action tor Mueller of the Federal Bureau of Inves- shorted Lehman Brothers and helped against the Wall Street company Goldman tigation to hire 1,000 more agent as well as make sure it did come down. It was re- Sachs & Co (GS& Co.) and one of its employ- additional forensic experts, and Chair Mary portedly in many of the e-mails at ees for making materially misleading state- Schapiro of the U.S. Securities and Exchange Goldman Sachs by employees when ments and omissions in connection with a Commission to hire more investigators to they were communicating with some of synthetic collateralized debt obligation continue to pursue justice and route out the their clients that they said that they (‘‘CDO’’) that GS & Co. structured and mar- criminals in our financial system. Part of fi- were no longer going to support or keted to investors. The SEC alleges that: nancial regulatory reform should include re- 1. This synthetic CDO, ABACUS 2007–AC1, back up Bear Stearns, and then all of a moving the criminals and crafting a system sudden Bear Stearns went down. was tied to the performance of sub-prime res- that supports those who follow the law. idential mortgage-backed securities We in Congress stand ready to support you We now have China suing Goldman (‘‘RMBS’’) and was structured and marketed in protecting the American taxpayers from Sachs over bad derivative deals. We by GS & Co. in early 2007 when the United financial crimes such as the fraud that the have Germany, France, and the U.K.; States housing market and related securities U.S. Securities and Exchange Commission and God knows, what did they do with were beginning to show signs of distress. has charged Goldman Sachs with commit- Greece? Much like Enron, Goldman Synthetic CDOs like ABACUS 2007–AC1 con- ting. We ask that you take up this case, and Sachs went to Greece and created a tributed to the recent financial crisis by others, to pursue justice for the American way by which they could take some of magnifying losses associated with the down- people, to put criminals in jail, and seek to their debts off their balance sheet so turn in the United States housing market. restore the integrity of our nation’s finan- they could get support from the EU, 2. GS & Co. marketing materials for ABA- cial system. CUS 2007–AC1—including the term sheet, flip Sincerely, and in the course of doing so, hid much book and offering memorandum for the Marcy Kaptur, John Conyers, Michael of the debt. And now we all know what CDO—all represented that the reference Burgess, Jim McDermott, Diane E. has happened to Greece. We all know portfolio of RMBS underlying the CDO was Watson, Christopher P. Carney, Rau´ l what has happened to the stock market selected by ACA Management with experi- Grijalva, Keith Ellison, Charlie just yesterday as a result of the rating ence analyzing credit risk in RMBS. Undis- Melancon, Tom Perriello, Betty Sut- agencies taking the steps they did. closed in the marketing materials and unbe- ton, Jay Inslee, Pete Stark, Michael This company has no shame. This knownst to investors, a large hedge fund, Honda, John T. Salazar, Niki Tsongas, company is willing to do any deal as Paulson & Co. Inc. (‘‘Paulson’’), with eco- Alan Grayson, David Loebsack, Bob nomic interests directly adverse to investors long as it makes them money. Filner, Betsy Markey, John Barrow, Ms. KAPTUR. Do you happen to in the ABACUS 2007–AC1 CDO, played a sig- Jesse Jackson Jr., Eleanor Holmes nificant role in the portfolio selection proc- Norton, Grace F. Napolitano, Maurice know what the bonuses were for Gold- ess. After participating in the selection of Hinchey, Peter Welch, Marcia L. man Sachs? I know they totaled into the reference portfolio, Paulson effectively Fudge, Rush Holt, Peter DeFazio, Mi- the billions. shorted the RMBS portfolio it helped select chael E. Capuano, Bill Pascrell, Jr., Mi- Mr. DEFAZIO. Last year it was rath- by entering into credit default swaps chael H. Michaud, Steve Cohen, Bruce er modest for Mr. Blankfein, he only (‘‘CDS’’) with GS & Co. to buy protection on L. Braley, Bart Stupak, Mark Schauer, got a $9 million bonus which was con- specific layers of the ABACUS 2007–AC1 cap- Chellie Pingree, Martin Heinrich, siderably less than previous, but that ital structure. Jackie Speier, Janice D. Schakowsky, does figure out to $1,000 an hour, 24 3. In sum, GS & Co. arranged a transaction Sheila Jackson Lee, Tammy Baldwin, at Paulson’s request in which Paulson heav- hours a day, 7 days a week, 365 days a Barbara Lee, Mike Doyle, Gene Taylor, year. Most Americans would be happy ily influenced the selection of the portfolio Wm. Lacy Clay, Jr., James Moran, to suit its economic interests, but failed to Danny K. Davis, Ben Chandler, Dennis to have that salary for a fraction of a disclose to investors, as part of the descrip- Kucinich, Carol Shea-Porter, Bennie G. week. tion of the portfolio selection process con- Thompson, Laura Richardson, Loretta Ms. KAPTUR. I think he thought it tained in the marketing materials used to Sanchez, Dale Kildee, Leonard L. Bos- was too little, didn’t he? promote the transaction, Paulson’s role in well, Donna F. Edwards, Frank Mr. DEFAZIO. Well, compared to the the portfolio selection process or its adverse Pallone, Jr., Ann Kirkpatrick, Carolyn enormous wealth that he created by economic interests. C. Kilpatrick, Mazie K. Hirono, James shorting and manipulating and synthe- As the SEC notes, financial manipulations P. McGovern. such as this contributed to the near collapse sizing. You know, the one thing I would of the U.S. financial system and cost Amer- Ms. SPEIER. I thank the gentlelady reflect on, I was a little puzzled yester- ican taxpayers hundreds of billions of dol- from Ohio. You referenced the number day when I kept hearing him say, We lars. On the face of the SEC filing, criminal of people in the Department of Justice are the market makers. We are the fraud on a historic scale seems to have oc- that are tasked with doing the inves- market makers. curred in this instance. As an ever growing tigations. It was very interesting this After awhile I started thinking about mountain of evidence reveals, this case is week when we had the hearing on Leh- book makers, market makers, is there neither unique nor isolated. man Brothers and Mary Schapiro spoke a difference. What is the difference If both global and domestic confidence in the integrity of the U.S. financial system is to their ability to do their job when when they are not dealing in reality or to be regained, there must be confidence that they only had 24 staff members in that productive investment, they are deal- criminal acts will be vigorously pursued and specific division to do investigations of ing in manipulated investments, prod- perpetrators punished. all of the Wall Street firms. ucts that are designed to fail. I mean,

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00064 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.118 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H3003 we have too-big-to-fail institutions commercial bank as we know them, ness owners and everyone else who that create products that are designed and yet they have the luxury of being played by the rules only to find them- to fail, and they profit immensely by at the discount window getting the selves devastated by the economic doing that. What’s that about market money cheap even though they have downturn. And it should convince making? not been a commercial bank as we every Member of this body to prioritize Ms. SPEIER. The hardest thing to know a commercial bank to be. All legislation that puts consumers first try to explain to the American people they have done is bet on how to rig and demands accountability of our reg- is what is a synthetic CDO and liken it these various mortgage-backed securi- ulators and financial institutions. to what goes on in our lives. So I have ties and make a truckload of money off Sadly, Wall Street has been fighting such been scratching my head trying to them. reform tooth and nail when in fact they should think of what it would be like. This Ms. KAPTUR. What amazed me is be embracing our efforts to ensure that the may not be a good analogy, but I offer when all of the house of cards started rules are clear, the system is transparent and it up. It would be like a doctor going in to fall, sometimes in my part of the the playing field is even. Once again, I urge and doing open heart surgery knowing country you see chipmunks tearing the financial sector to join us instead of fight- that his patient was very close to across the concrete, and they go so ing us—if your practices are legitimate, you death anyway, and then taking out a fast. The minute they got in trouble, should have, nothing to fear from this legisla- life insurance policy on that patient what did they do, they came under the tion. because he was clearly going to win umbrella of the Bank Holding Company The reckless actions of Goldman Sachs and each way. Act so they could not be a speculator other financial institutions provide a clear illus- Ms. KAPTUR. Excellent analogy. any more, now they are a legitimate tration of why we need to place a greater im- They created rules by which only they bank; right? Even though they were portance on good corporate governance. We could win, and that doesn’t seem to me trafficking in all of those securities, must create an environment in which busi- to be the spirit of free enterprise. They they were just like those little chip- nesses take care of—and are held account- created so much collateral damage it munks. They hid themselves right able to—their shareholders, employees and brought down the economy of the under the Bank Holding Company Act. customers. Companies should be encouraged whole country. They keep using the ar- I don’t agree with what was done, but to have sustainable environmental policies and gument if we didn’t have the TARP, they took good care of themselves. practices, solid workplace relations and then things would have really gone Ms. SPEIER. I now yield time to my produce safe products. wrong. I thought, How could it be good friend, the gentleman from Rhode That is why I plan to reintroduce the Federal worse? How could it be worse than Island (Mr. LANGEVIN). Employees Responsible Investment Act, which Mr. LANGEVIN. I thank the gentle- this? Is what they did with the TARP would add a socially responsible investment lady for yielding, and I want to echo just bailing themselves out, because option to the Thrift Savings Plan. Making an the concerns and the words of my col- they certainly have not done anything investment in companies that are committed to leagues who have spoken on this issue for the American people. They have corporate responsibility will have a positive im- thrown all of the bills of all of their of financial reform and the outrageous financial business practices that have pact on our financial system, as well as em- mistakes on Fannie Mae, Freddie Mac, power individuals to reward companies that FHA, all of the instrumentalities of the been taking place on Wall Street. I am angry, as you are, and I cer- share their values. United States for decades to come. tainly want to take the opportunity to We must do everything in our power to They didn’t take any losses on those express my strong support for the work move our economy forward, and I urge all my themselves. They were enriched by the being done to crack down on Wall colleagues, especially those in the Senate, to taxpayers of the United States who Street and enact reform to prevent an- support legislation that ends Wall Street’s lifted them right up. And they are not other near-economic collapse from en- gambling with our hard-earned dollars. I agree dealing with the damage across this dangering our financial system and with President Obama when he said last country where foreclosures continue to American families. week, ‘‘this issue is too important and the cost go up. I was certainly proud to vote for the of inaction is too great.’’ My constituents in I place on the Record the names of Wall Street Reform and Consumer Pro- Rhode Island couldn’t agree more. the six companies that now hold two- tection Act this past December, and I Ms. SPEIER. I thank the gentleman thirds of the wealth of this Nation, and look forward to voting for its final pas- and recognize we could have spoken for they are Goldman Sachs, Morgan Stan- sage into law this year. 2 hours this evening, and we will con- ley, JPMorgan Chase, Citigroup, Bank In my home State of Rhode Island, tinue this. of America, and Wells Fargo. They we are still feeling the repercussions of f have enriched themselves handsomely. the Great Recession. With an unem- ECONOMIC CRISIS IN AMERICA They doubled their importance since ployment rate of 12.6 percent, we are the beginning of this crisis while tied for the third highest unemploy- The SPEAKER pro tempore (Mr. quashing community banks across this ment rate in the Nation. And I’m angry BOCCIERI). Under the Speaker’s an- country, seeing forced mergers as insti- that while Wall Street banks were nounced policy of January 6, 2009, the tutions like PNC bought up National propped up with taxpayer funds last gentleman from Iowa (Mr. KING) is rec- Citibank in Ohio, as local community year, our small businesses on Main ognized for 60 minutes. banks that didn’t do anything wrong Street are struggling to keep their Mr. KING of Iowa. Mr. Speaker, I lis- and were not permitted to do this kind doors open. American families are tened with interest to the presen- of wild-eyed business deal, found them- struggling to keep their homes, and tations made here in the previous hour, selves having to pay huge FDIC fees. they are still asking where is their as- and there were a couple of visuals that And the net yield of all of this is the sistance because it hasn’t been enough. I want to look at and commit some of big ones got bigger and the American Over the past few years, I, like many that to memory. people are continuing to be kicked out Rhode Islanders, have been angered by I heard from Ms. KAPTUR that this is of their homes and these institutions the greed exhibited by Wall Street and not a partisan issue, it is an economic won’t return phone calls and they have other companies that took advantage issue and an American issue, and I hold of the auction process and their of their investors, preyed on our con- agree. I have been troubled for some investment intermediaries are holding stituents, and rewarded executives time not just the influence that comes the equity and the ownership in these with outrageous pay packages. This out of Goldman Sachs, but the influ- properties. How is that good for this week, we heard Goldman Sachs execu- ence that comes out of Wall Street. country? tives testify before the Senate that Here is my concern and here how it was Ms. SPEIER. I thank the gentlelady they are not to blame for the bad in- internalized. from Ohio. It is very important to vestment deals that were based on the I lived much of my life watching make the point that Goldman Sachs mortgage market and added to its col- from a distance what was going on on has never loaned a dime, has never of- lapse. Wall Street, and I believed that as fered a loan to an American trying to This testimony is a slap in the face those investors and those bankers sat buy a house. They have never been a to hardworking Americans, small busi- down there and began to trade on the

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00065 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.119 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H3004 CONGRESSIONAL RECORD — HOUSE April 28, 2010 streets of Wall Street and began to If we start a business, we have to Black, an attorney who was recently build the edifices that exist there guarantee those payments. We have to on television, that I think is very, very today so very close to Ground Zero, get a line of credit at the bank so we probing about the enormous potential that they were keepers of the free en- can make our monthly bills and we can here for financial fraud, control fraud, terprise flame in America. meet the payroll and the utilities and the lack of investigators inside the all of the things that come along with b 1815 FBI, and as Congresswoman SPEIER the free enterprise side of this. mentioned, inside of the SEC. And then I had great trust that they were the I looked at Wall Street and I found also an interview with Dr. Simon John- ones that understood from the top out that they had a different set of son of MIT and Mr. James Kwak about down, from the multiple billions of dol- rules, a different way of looking at what is actually happening in this cri- lars in investments down, how to hold this, that their checks and balances sis and how we are not addressing it together free enterprise, how to plan were not built in so that there was an fully in the reform bills proceeding for the long term, how to put provi- assurance that—the built-in compo- through this Congress. sions in place so that each generation nent that is a check and balance that So I just appreciate you giving me could have that opportunity to do free would require that the people who the opportunity to say that and to say enterprise capitalism and free market would make the over-investments and we are in common cause here. I appre- capitalism. take the excessive risks would pay the ciate your comments very much. I am I got my first wide open eyes when I price for that. first went to Wall Street when I was very worried about where we’re headed So as we get to this point now where as a country. I see community banks elected to Congress; it would be fairly we have seen the downward spiral in early in 2003 for me. It’s a long story, being destroyed in my region. I see our economy, this ‘‘Great Recession’’ these big money center institutions but the short version of it was after I as some will call it and the massive went around Wall Street and met with that have been prone to moral hazard government bailouts that we have had having greater and greater authority a lot of the CEOs and the players that and the tremendous burden on the tax- were there, on the way back I turned to in our country. And the amount of payers, born and unborn, that we will money they give to political cam- my wife and I said, Marilyn, they don’t have this obligation to try to service have a vision for the long term. They paigns, and with the recent decision by the interest and the principal on this the Supreme Court to allow endless don’t have a plan in place to protect debt, still the guarantee is there, more our investments and see to it that this funding by any group in our political than implicit, it’s now nearly explicit campaigns. Any one of them could wipe doesn’t collapse. They’re looking at the with this legislation. And we may or short term. They’re looking at taking us out. may not agree on how we go forward, That’s not what this country was set their margins out and they’re looking but I think we can agree that the at their quarterly reports, but they’re up for. We were set up for opportunity. things that we’ve done in the past We were set up for the individual to not looking at where we are in 10 years haven’t had enough checks and bal- or a generation or 50 years or 100. That matter, for our communities to matter, ances internally. for the equity that our people, when was well before we saw anything except As I listened to this dialogue—I they create it in their homes, that they a dot-com bubble that was, at the time, didn’t come to the floor to speak about just don’t lose it because these people being filled by an unnatural housing this subject, but I wanted to express market that was partially fueled by this right in the aftermath of this pre- think of some scheme to raid them. unnaturally low interest rates. But vious Special Order, Mr. Speaker, to let And yet that’s what we’re facing now. So we have an enormous obligation that was my vision then. you know and everyone know that we to educate the American people and As I watch this unfold, I reflect upon do have a common cause to put respon- learn from them and hear their best ad- an individual we brought in as an ex- sibility and government responsibility vice on how we can dig ourselves out of pert, and since I’m going to quote him in the market system. I just watched on the floor, I don’t want to attribute the gentlelady pay attention here. I this hole. I thank you for allowing me a few it to the name, but it’s 30 years in in- would yield to whatever remarks she moments of your time. vestment banking. This was in the be- might choose to make. ginning of the subprime mortgage cri- Ms. KAPTUR. I want to thank Con- INTERVIEW: EXCERPTS FROM BILL MOYERS JOURNAL, APRIL 23, 2010, GUEST: BILL BLACK sis as the dialogue was beginning in the gressman KING very much for coming country before we actually saw this to the floor because we share a concern Bill Moyers: Bill Black is with me now. One of the country’s leading experts on starting to tail off. He explained it this that goes beyond party. This is so seri- way: when you’re in this investment crimes in high places he teaches economics ous for our country, it’s serious for our and law at the University of Missouri-Kansas banking business, what you do is—and generation, it’s serious for the next City, and wrote this book, ‘‘The Best Way To these would be the experts—what you generation. Rob a Bank Is To Own One.’’ do is pretty much what everybody If we look at the abuses of the finan- Welcome back to the Journal. does. That way if they’re making cial system over the last 30 years, let’s William K. Black: Thank you. money, you’re making money, and if say, every time something bad hap- Bill Moyers: What did you think of the things fall apart and they get bailed President’s speech late this week? pened, the government bailed them William K. Black: It’s a good speech. He’s out, you’ll be bailed out with them. out. And then the next crisis was worse a very good spokesman for his causes. I don’t That was more than 3 years ago. than the one before it. I came here dur- think substantively the measures are going That’s another incident that was ing the 1980s. I saw what happened, and to prevent a future crisis. And I was dis- branded into my memory because it I saw a huge debt put on the American appointed that he wasn’t willing to be blunt. was a seminal moment in my under- people, $140 billion at that point. And He used a number of euphemisms, but he was standing that the economy that most rather than strengthening the laws to unwilling to use the F word. of us deal with as individuals, bal- prevent moral hazard, we loosen them. Bill Moyers: The F word? William K. Black: The F word’s fraud in ancing our checkbook, paying our cred- And then we got a worse crisis. it card bills, looking at the income this. And it’s the word that explains why we If you look back to Enron, if you have these recurrent, intensifying crisis. that comes in weekly or monthly and look back to everything that happened Bill Moyers: How is that? What do you budgeting our expenses and knowing during the 1990s, rather than repairing mean when you say fraud is at the center of that there are checks and balances in it, what we did was we gave them more it? everything that we do, if we fail to latitude—it’s inexplicable what oc- William K. Black: Well, first, when you de- make our house payment, somebody curred—and the moral hazard got regulate or never regulate, mortgage bank- comes and sells our house. If we fail to greater. And now with this, this is so ers were never regulated, you effectively make our car payment, somebody re- much larger than the last two crises, have decriminalized that industry, because only the regulators can serve as the sherpas, possesses our car. They don’t come and it’s a real question as to whether that the FBI and the prosecutors need to be along and say, oh, sorry, you didn’t buy the so-called ‘‘reform’’ coming out of able to understand and prosecute these kind a nice enough car, we’re going to tax the Congress will actually work. of complex frauds. They can do one or two or somebody and fund that. We have to be I would like to place in the RECORD maybe three on their own, but when an en- responsible for our finances. an interview with Professor William tire industry is beset by wide scale fraud,

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00066 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.121 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H3005 you have to have the regulators. And the chief risk officer and discussed the letter, on William K. Black: Yeah, this was pretty regulators were the problem. They became a the Wednesday I sat down with the general disingenuous, because other portions of his self-fulfilling prophecy of failure, because counsel and the head of internal audit, dis- testimony, he explained why there was this they, President Bush appointed people who cussed the letter. On the Thursday I was on gap. And he said it was because we repealed hated regulation. I call them the anti-regu- a conference call to Brazil. Somebody came Glass-Steagall. Well, the Fed pushed for the lators. And that’s what they were. into my office, pulled me out, and fired me repeal of Glass-Steagall. Bill Moyers: This hearing that, where you on the spot without any notification. I Bill Moyers: Glass-Steagall was the act testified this week, looking into the bank- stayed, sorry. that was repealed in the late nineties that ruptcy at Lehman Brothers, had something Bill Moyers: Matthew Lee, vice-president separated regular banks from investment on this. of Lehman Brothers, fired because he tried banks, right? Timothy Geithner: And tragically, when to blow the whistle. What does that say to William K. Black: Correct. So this is a de- we saw firms manage themselves to the edge you? liberately created regulatory black hole, cre- of failure, the government had exceptionally William K. Black: Well, it tells me that ated by the Fed. And then the Fed comes limited authority to step in and to protect they were covering up the frauds, that they into the hearing, eight years later, and said, the economy from those failures. knew about the frauds and that they were we were helpless. Helpless to do anything, Ben Bernanke: In September 2008, no gov- desperate to prevent other people from because of a black hole we designed. ernment agency had sufficient authority to learning. INTERVIEW: EXCERPTS FROM BILL MOYERS Bill Moyers: Matthew Lee told the ac- compel Lehman to operate in a safe and JOURNAL, APRIL 16, 2010, GUESTS: SIMON counting firm Ernst & Young what was going sound manner and in a way that did not pose JOHNSON AND JAMES KWAK dangers to the broader financial system. on. Isn’t the accounting firm supposed to re- port this, once they learn from somebody Simon Johnson is a former chief economist Anton Valukas: What is clear is that the at the International Monetary Fund. He now regulators were not fully engaged and did like him that there’s fraud going on? William K. Black: Yes, they’re supposed to teaches at MIT’s Sloan School of Manage- not direct Lehman to alter the conduct ment and is a Senior Fellow at the Peterson which we now know in retrospect led to Leh- be the most important gatekeeper. They’re supposed to be independent. They’re sup- Institute for International Economics. man’s ruin. James Kwak is studying law at Yale Law Bill Moyers: The regulators were not fully posed to be ultra-professional. But they have an enormous problem, and it’s compensation. School—a career he decided to pursue after engaged. I mean, this is an old story. We all working as a management consultant at know about regulatory capture where the And that is, the way you rise to power with- in one of these big four accounting firms is McKinsey & Company and co-founding the regulated take control of the regulators. by being a rainmaker, bringing in the big cli- successful software company, Guidewire. To- William K. Black: Yeah, but this one is far gether James Kwak and Simon Johnson run worse. That’s not very candid testimony on ents. And so, every single one of these major the indispensable economic website anybody’s part there. The Fed had unique frauds we call control frauds in the financial BaselineScenario.com. authority. And it had it since 1994 to regu- sphere has been—their weapon of choice has Welcome to you both. late every single mortgage lender in Amer- been accounting. And every single one, for Let me get to the blunt conclusion you ica. And you might think the Fed would use many years, was able to get what we call reach in your book. You say that two years that authority. clean opinions from one of the most pres- after the devastating financial crisis of ’08 And you might especially think that, if tigious audit firms in the world, while they our country is still at the mercy of an oligar- you knew that Gramlich, one of the Fed were massively fraudulent and deeply insol- chy that is bigger, more profitable, and more members, went personally to Alan Greenspan vent. resistant to regulation than ever. Correct? and said, there’s a housing bubble. And Bill Moyers: I read an essay last night Simon Johnson: Absolutely correct, Bill. there’s a terrible crisis in non-prime. We where you describe what you call a The big banks became stronger as a result of need to send the examiners in. We need to criminogenic environment. What is a the bailout. That may seem extraordinary, use our regulatory authority. And Greenspan criminogenic environment? but it’s really true. They’re turning that in- refused. Lehman was brought down pri- William K. Black: A criminogenic environ- creased economic clout into more political marily by selling liar’s loans. It was the big- ment is a steal from pathology, a pathogenic power. And they’re using that political gest seller of liar’s loans in the world. environment, an environment that spreads power to go out and take the same sort of And when we look at these liar’s loans, we disease. In this case, it’s an environment risks that got us into disaster in September find 90 percent fraud. 90 percent. And we find that spreads fraud. And there are two key 2008. that most of the frauds are not induced by elements. One we talked about. If you don’t Bill Moyers: And your definition of oligar- the borrower, but they’re overwhelmingly regulate, you create a criminogenic environ- chy is? done by the loan brokers. ment because you can get away with the Simon Johnson: Oligarchy is just—it’s a Bill Moyers: And liar’s loans are? frauds. The second is compensation. And very simple, straightforward idea from Aris- William K. Black: A liar’s loan is we don’t that has two elements. One is the executive totle. It’s political power based on economic get any verified information from you about compensation that people have talked about power. And it’s the rise of the banks in eco- your income, your employment, your job his- that creates the perverse incentives. But the nomic terms, which we document at length, tory or your assets. second is for these professionals. And for the that it’d turn into political power. And they Bill Moyers: You give me a loan, no ques- lower level employees, to give the bonuses. then feed that back into more deregulation, tions asked? And it creates what we call a Gresham’s dy- more opportunities to go out and take reck- William K. Black: No real questions asked. namic. And that just means cheaters pros- less risks and—and capture huge amounts of Certainly no answers checked. In fact, we per. And when cheaters prosper, markets be- money. just had hearings last week about WaMu, come perverse and they drive honesty out of Bill Moyers: And you say that these this which is also a huge player—— the market. oligarchy consists of six megabanks. What Bill Moyers: Washington Mutual—— Bill Moyers: You also wrote that the New are the six banks? William K. Black [continuing]: In these York Federal Reserve knew about this so- James Kwak: They are Goldman Sachs, frauds. Washington Mutual, which used to called three-card monte routine. But that, Morgan Stanley, JPMorgan Chase, make, run all those ads making fun of bank- the man who led it, at the time, Timothy Citigroup, Bank of America, and Wells ers who, because they were stuffy and looked Geithner, now the treasury secretary, testi- Fargo. at loan quality before they made a loan. fied that there was nothing he could do. Bill Moyers: And you write that they con- Well, WaMu didn’t do any of that stuff. And Timothy Geithner: In our system the Fed- trol 60 percent of our gross national product? of course, WaMu had just massive failures. eral Reserve was a fire station, a fire station James Kwak: They have assets equivalent And who got in trouble at WaMu? Who got in with important, if limited, tools to put foam to 60 percent of our gross national product. trouble at Lehman? You got in trouble if you on the runway, to provide liquidity to mar- And to put this in perspective, in the mid- told the truth. They fired the people who kets in extremis. However, the Federal Re- 1990s, these six banks or their predecessors, found the problems. They promoted the peo- serve, under the laws of this land was not since there have been a lot of mergers, had ple that caused the problem, and they gave given any legal authority to set or enforce less than 20 percent. Their assets were less them massive bonuses. limits on risk-taking by large financial in- than 20 percent of the gross national prod- Bill Moyers: I watched the testimony stitutions like the independent investment uct. where you were present the other day in the banks, insurance companies like AIG, Fannie Bill Moyers: And what’s the threat from an Lehman hearings. And there was a very mov- and Freddie, or the hundreds of non-bank fi- oligarchy of this size and scale? ing moment with a former vice-president of nancial firms that operated outside the con- Simon Johnson: They can distort the sys- Lehman Brothers who had gone and tried to straints of the banking system. tem, Bill. They can change the rules of the blow the whistle, who tried to get people to Bill Moyers: Now, what I hear is the gen- game to favor themselves. And unfortu- pay attention to what was going on. Take a tleman who was then chairman of the New nately, the way it works in modern finance look. York Fed, saying, I, we had this job to do, is when the rules favor you, you go out and Matthew Lee: I hand-delivered my letter to but we didn’t have the authority to do it. you take a lot of risk. And you blow up from the four addressees and I’ll give a quick William K. Black: Yeah. time to time, because it’s not your problem. timeline of what happened, May 16th was a Bill Moyers: We were the fire truck, but we When it blows up, it’s the taxpayer and it’s Friday, on the Monday I sat down with the didn’t have any water in our hose. the government that has to sort it out.

VerDate Mar 15 2010 04:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00067 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.050 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H3006 CONGRESSIONAL RECORD — HOUSE April 28, 2010 Bill Moyers: So, you’re not kidding when ECONOMIC CRISIS IN AMERICA However, by the end of World War II, you say it’s an oligarchy? The SPEAKER pro tempore. The gen- we had not recovered economically James Kwak: Exactly. I think that in par- from where we were in 1929. And by the ticular, we can see how the oligarchy has ac- tleman may resume. tually become more powerful in the last Mr. KING of Iowa. I am always happy beginning of the Korean War—let me since the financial crisis. If we look at the to yield when the Rules Committee is say by the beginning of the Cold War in way they’ve behaved in Washington. For ex- conducting business here on the floor. 1948, as it was illustrated by Winston ample, they’ve been spending more than $1 So I will go back to the beginning, Churchill—we had not recovered from million per day lobbying Congress and fight- Mr. Speaker, and that is this: that if the Great Depression. By the beginning ing financial reform. I think that’s for some we would go to 1978—and I want to il- of the Korean War, we had not yet re- time, the financial sector got its way in lustrate the chronology of how we got covered from the Great Depression. Washington through the power of ideology, to where we are today financially. Ex- And by the end of the Korean War, we through the power of persuasion. And in the last year and a half, we’ve seen the gloves cuse me, Mr. Speaker, I will take it had still not yet recovered from the come off. They are fighting as hard as they back even further than that. Let’s go Great Depression. If you measure it as can to stop reform. back to October of 1929 when the stock the Dow Jones Industrial Average re- Simon Johnson: I know people react a lit- market crashed and it launched the covering back to the place where it was tle negatively when you use this term for the Great Depression rather than the Great in October of 1929, that happened, Mr. United States. But it means political power Recession. We saw a downward spiral Speaker, 9 years after Franklin Delano derived from economic power. That’s what in the value of that Dow Jones Stock Roosevelt had passed away. It was 1954 we’re looking at here. It’s disproportionate, Exchange and the other shares that it’s unfair, it is very unproductive, by the when the stock market got back to way. Undermines business in this society. were not registered on the Dow at the where it was in October of 1929. All of And it’s an oligarchy like we see in other time, or as part of the Dow Jones In- those years. countries. dustrial Average, and Americans lost And I will argue, Mr. Speaker, that Mr. KING of Iowa. Reclaiming my equity. Some jumped out of windows— overspending by government, the inter- time and, Mr. Speaker, I would point actually, not nearly as many as history est and the principal overspending by out that it is unusual for Democrats would have us believe—but that crash government delays the recovery. It and Republicans to share time sponta- in the stock market precipitously may diminish the depths to which we neously on the floor, but it’s because dropped. Of course it came up and went might have otherwise fallen, but it there is a bond of common interest and down, and it’s always been a sawtooth. delays the recovery. But we went through the thirties. We a bond of a serious legislator that I rec- It’s the same as in a business. Let’s saw Franklin Delano Roosevelt being ognize that’s here on the floor for a se- say, for example, you’re a small busi- elected in 1932. And actually, prior to rious reason. ness and you’re grossing $500,000 a year I thank the gentlelady from Ohio for that, but certainly accelerated from and meeting a payroll and all the bills the presentation. that point, he borrowed money and that I talked about earlier and you I’m going to shift off now into the spent money and created make-work have a flood that wipes out your asset subject matters that I had on the front projects, and he put the United States base. Then along comes FEMA, and if of my mind, but I was compelled to ad- in debt like never before and never en- you’re in business, they’re not going to dress this and I appreciate the re- visioned by the Founding Fathers. give you a grant; they might help you sponse. Even his own people, including John get an SBA loan. So if there’s a dis- Mr. Speaker, I come here to the floor Maynard Keynes, got nervous with the aster loan, it might even be a pref- tonight to talk about a range of issues. amount of money that was spent. His erable interest rate, but let’s say your Perhaps if I would pick up on the finan- Treasurer, Morgenthau, expressed his debt was $100,000 and you’re grossing cial side of this and go through a list of concern that we spent all this money $500,000 and meeting a payroll of some of the things that have happened and what do we have to show for it. Un- $250,000 a year. Now, it takes another that I think contributed to the ‘‘Great employment is still high; the economy $400,000 to put all the pieces back in Recession’’ that some refer to it as. still hasn’t recovered. And they lum- your business, and you’re able to bor- And I would take us back a long ways. bered all the way through the thirties row that money at 4 percent or 5 or 6 I would take us far back to the time with marginal improvement in the percent. that there became implicit guarantees economy. Now you have the interest rate on that the Federal Government would do And one has to question if it ever the $400,000, plus the requirement to bailouts. would have recovered if it hadn’t been pay the principal off on that $400,000. I remember those years of the for World War II. In fact, the President All of that money that you’re spending eighties that the gentlelady men- of the United States, the current Presi- now that is the result of the over- tioned. I went through 28 years of busi- dent, has made the remark that World leveraging that may be necessary to ness, and I was highly leveraged going War II was the largest stimulus plan keep you in business is money that’s into the farm crisis of the eighties. I ever. He can make that statement and earned, it’s money that you had to know the pain of that. I lived for 31⁄2 challenge it or not, I don’t take issue earn, you would have earned it any- years with a knot in my stomach that with the concept that he is illustrating way, but now that money goes off for didn’t go away unless there was some- in that point, Mr. Speaker. interest and principal rather than cap- thing incredibly distracting that would But I would continue and make this ital investment, which is what creates cause it to disappear, and then I re- point, that from October of 1929 we saw jobs. all of this spending in the New Deal era member it would form again. b 1830 The SPEAKER pro tempore. The gen- of the Great Depression throughout the tleman will suspend. thirties. We saw all the borrowed At a certain point, you can’t service f money that went into winning World the debt any longer. At a certain point, War II, and it’s a good thing that we a business can’t pay the interest; it REPORT ON RESOLUTION PRO- did. I believe Franklin Delano Roo- can’t pay the principal, and it becomes VIDING FOR CONSIDERATION OF sevelt was an outstanding war leader insolvent if the debt and the leverage is H.R. 2499, PUERTO RICO DEMOC- for the better part of the Second World too high. That is true for a family that RACY ACT OF 2009 War, not so much of an economic lead- runs their credit card bills up too much Mr. ARCURI, from the Committee on er, in my view, nor a social and cul- to where they can’t service even the in- Rules, submitted a privileged report tural one; but he did hold us together terest or the minimum payments on (Rept. No. 111–468) on the resolution (H. as a Nation and he provided that clear their credit cards. It’s true also for a Res. 1305) providing for consideration voice and that leadership that was so small business. It’s true for a large of the bill (H.R. 2499) to provide for a important during that period of time, business—and, Mr. Speaker, it’s true federally sanctioned self-determination and he stood on the ground of uncondi- for a government. It’s true for a small process for the people of Puerto Rico, tional surrender. So I tip my hat to government like Greece. It’s true for a which was referred to the House Cal- that contribution to history to that large government like the United endar and ordered to be printed. man. States of America. At some point, this

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00068 Fmt 4634 Sfmt 0634 E:\CR\FM\A28AP7.052 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H3007 debt that we have taken on here in this nice home in a neighborhood that’s not I’m not privy to. He set about a policy time, in this era, becomes too great for as nice as it used to be. Even though here in the United States to unnatu- even the most robust economy in the you keep your home up, people don’t rally lower the interest rates so that world to overcome—to service, to pay want to buy that home because they more people could buy homes in order the interest, and to pay the principal don’t want to move into that neighbor- to drive the housing market. This was on that debt. hood, so the value is going down. to partially compensate for the burst- That’s where I think we are headed. The bankers and the lenders were ing of the dot-com bubble. We had more We may already be there. doing what they call ‘‘redlining.’’ I homes built than before, a higher de- That was the fear that they had dur- have a red pen in my hand. They would mand because of the unnaturally low ing the thirties, and that was some- draw, Mr. Speaker, a line around this interest rates and favorable terms, and thing that may have restrained Roo- neighborhood or this area in the city, we had the lower underwriting stand- sevelt in his spending to where we were and they would make a determination ards that had been provided to Fannie able to recover from it; although, it that they were no longer going to lend Mae and Freddie Mac as far as their took a long, long time—from 1929 until money on real estate in those neigh- secondary mortgages were concerned. 1954, until 9 years after the Second borhoods or in those commercial indus- There was pressure that was put on World War was over and 9 years after trial property areas that were being the lenders. They had been pushed by Franklin Delano Roosevelt passed run down. ACORN, which found itself in the away. We carried this burden through- It may well have been a prudent busi- inner-city neighborhoods brokering out this whole period of time. ness decision. It was defined as a racist home loans and approving the conduct Through the fifties, during those decision, and in some cases, I think it of the lenders as to whether they were idyllic years of Fun with Dick and probably was. This Congress passed leg- complying with the Community Rein- Jane, which is the life that I grew up islation called the Community Rein- vestment Act. in, we were responsible for our budgets. vestment Act. It compelled lenders to So we have a political organization The people who were coming into make bad loans in bad neighborhoods. that has turned out to be a corrupt adulthood at that period of time had That was in 1978. ACORN was formed criminal enterprise, promoting bad now cut their economic teeth on fiscal and shaped around that same period of loans in bad neighborhoods at unnatu- responsibility because they had time. rally low interest rates, driving up a pinched pennies and had made it As this moved forward into the 1990s, false economy in the housing market through the Great Depression. Then under the Clinton administration, to, presumably to some degree, com- they fought and won a world war. Then there was a refreshment of the Commu- pensate for the bursting of the dot-com they were engaged in a Cold War. Of nity Reinvestment Act that set yet bubble that was brought about by the course, we had the war in Korea that higher standards for making more bad suits of the States’ attorneys general, was a negotiated settlement in the end. loans into bad neighborhoods. They including by my attorney general, Tom These were a frugal, hardened people had found that Fannie Mae and Freddie Miller. who were the sons and daughters, in Mac had become quasi-government en- While all of that was going on, we got my part of the country, of pioneers tities for formerly private entities who hit by the September 11 attack on our who came across the prairie in a cov- were not making, according to the financial centers. There were the ensu- ered wagon—generally walking beside opinion of this Democrat majority in ing extra costs involved, and there was the team of oxen, not riding in the this Congress, enough bad loans into a tremendous loss in life and in treas- wagon—to live free or die on the prai- bad neighborhoods. So they changed ure that took place due to that. Then what do we see happening here? rie. These were independent, hard- the standards in the Community Rein- We have seen now an economic crisis working, industrious, entrepreneurial vestment Act. They were lobbied by that has been, perhaps, averted, but spirited, strong faith family people who ACORN to lower the standards for maybe it would have been better if we took advantage of the opportunity to Fannie Mae and Freddie Mac. They would have simply allowed some of be legally here in America, to build lowered the standards for Fannie Mae those businesses that were too big to lives for themselves and to lay the and Freddie Mac for the secondary loan fail to just simply fail. We’d have reor- foundation for their children and their market so that more lenders could ganized them, and we would have put grandchildren. These were the people make more bad loans in more bad them through the process to get them in the fifties. neighborhoods and could peddle them back into the system again. We would Now we watch the next generation, off into the secondary loan market of have recovered more quickly. It may the baby boomer generation, blossom Fannie Mae and Freddie Mac. have hurt more, but in the end, we with the component of the generation Now we are into the mid-1990s, and would have reestablished the principle which was referred to as the ‘‘flower still it wasn’t such a crisis until such that you simply cannot have ‘‘too big children,’’ who didn’t take that respon- time as the dot-com bubble burst. The to fail’’ unless you are going to have a sibility, who weren’t hardened by those dot-com bubble burst, I think, was ini- government guarantee. Now the gov- experiences, which were only the sec- tiated by the lawsuits against Micro- ernment guarantee on Fannie and ondhand experiences of what had been soft that were joined by several State Freddie is $5.5 trillion in contingent li- transferred from their parents to them, attorneys general, including by my abilities. All of this has taken place, and they began to push this irrespon- State attorney general, Tom Miller. I and it has moved us away from those sibility. think that he and others wielded the standards of free enterprise and ac- By 1978, the class envy component lance that pierced the dot-com bubble countability. got high enough, and there were some when they filed the class-action law- I would be very happy to yield so things that were inappropriate in what suit against Bill Gates’ operation and much time as she may consume to the was going on, but the lending institu- Microsoft. Even though I believe that gentlewoman from Minnesota, who is tions were redlining neighborhoods. that bubble was swelling and that it on the Financial Services Committee They would look at the inner cities in would have burst at some point, I and who is extremely knowledgeable America that were losing asset value. think the lance that was wielded was about this and about any subject that Now think of this: If you owned an by those State attorneys general. That she might choose to change it to. apartment—a ‘‘condominium’’ is how brought about the bursting of the dot- Mrs. BACHMANN. I thank the gen- we refer to it today—or a house or a com bubble. tleman from Iowa for laying out the piece of industrial or commercial prop- In the aftermath of the bursting of history of where we are today in terms erty in an inner city that was being the dot-com bubble, we had, I’ll say, a of the financial problem. run down, the value of the real estate mini recession. Alan Greenspan saw Really, the concern that I have on was diminished sometimes by the that mini recession. Mr. Speaker, this the bill that is being debated over on crime rates that were there, by the is my interpretation of his actions. the Senate side right now is that it abusive drugs, by the businesses that Certainly, this is subject to rebuttal by seems that this bill effectively wants weren’t sustaining their value and Alan Greenspan or by somebody else to institutionalize the very bad govern- their cash flows. So you might have a who may have some knowledge that ment interventionist policies that got

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00069 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.124 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H3008 CONGRESSIONAL RECORD — HOUSE April 28, 2010 us to the point at which we are now. GM stock was taken off of the New Usually, secured creditors take a Here are just a couple of things that York Stock Exchange because the lower interest rate. They get paid back this bill will do over on the Senate value of their stock plummeted so far. at a lower rate because they are first in side: So, contrary to what President Obama line. When Chrysler went under, what Number one, it makes bailouts per- said as to his being able to save the car happened is that, rather than making manent. It’s as though we had bailout companies with this bailout fund, the the bondholders whole first, they actu- 1.0, which no one really liked. It was a car companies went under. They failed. ally had their secured interests taken $700 billion bailout. I know Congress- As a matter of fact, President Obama away from them, and other creditors man KING and I both voted against the then decided—I don’t know where he were made whole first. original $700 billion bailout, but it got the power from—to fire the head of b 1845 would institutionalize and make per- GM. Out of what power? No one knows. manent the bailouts. So here you have the President of the How can you do that? That’s an abro- This is something that is not gen- United States deciding that a CEO of a gation of contract law; an abrogation erally known: With the first bailout— company is going to be fired. That is a of bankruptcy law. And so we saw a and it was under President Bush, unfor- jurisdictional issue. The President of violation of law. That’s something that tunately, that the first bailout was the United States does not have the is foundational to the United States passed—the President had to come to power to fire anyone in the private sec- that gives us a good business climate. Congress and ask us for our permission tor, but isn’t it amazing what a whole The rule of law is a good thing. The for the $700 billion fund to be created. lot of money will do for a person. That sanctity of contracts works. When we Now, remember, this never had hap- money put so much power into one start violating the law and when we pened in the history of the United man’s hands that he was able to do vir- start penetrating contracts and vio- States whereby the Secretary of the tually anything he wanted, including lating contracts, that’s when we get Treasury was given a blank check for overturning about 150 years of bank- into trouble with our business climate. $700 billion. The Treasury Secretary ruptcy law. We saw that happen in this bailout. virtually was able to do whatever he How was that? Because Chrysler Not only did the Federal Government wanted to do with that $700 billion, and bondholders, who are the people who take money that we don’t have. Re- he had, effectively, no oversight from invested money into the Chrysler car member, we had to borrow money. So Congress. He got a blank check for $700 company, had an investment. this wasn’t money that we had sitting billion. Let’s say you put $100 into a com- in a bank vault here in Washington, In good conscience, I could not give pany that your friend holds. That’s D.C., where we opened up the bank that kind of money to one single indi- your money that you put in. Then the vault and we pulled out big wads of $700 vidual, because, if you give that sum of company gives you a bond. It says, billion that we could give to the Treas- money, which had never before been Hey, if anything happens to our com- ury Secretary to give out to whatever given to any individual in American pany, we’ll make sure that your $100 is his favorite private business was or his history, you know there is going to be paid back first before anyone else is favorite group was. No. We had to bor- waste; you know there is going to be paid back, and we’ll pay you back all of row that money from the Chinese or fraud; you know there is going to be your $100. whoever we could go and sell our debt abuse. That is something that govern- Well, unfortunately, President to. And so who’s going to pay that Obama and his team decided to turn ment tends to do when it spends too back? That money is going to be paid upside down 150 years of bankruptcy much money. So, of course, that’s what back by the debt-paying generation. law. What they did is they said, You we saw. We saw that the money went That gets us into a whole ’nother area. bondholders who have a secured inter- all over the place, and we still don’t The gentleman was talking about the est in your investment are no longer have a full accounting of where all of financial mess we’re in. You were talk- getting your secured investment. We the TARP money is. ing about ACORN. You were talking Yet what did that money fund? Think are taking your money, and we are giv- about the subprime mortgages, where ing it to well-connected political peo- of it. all of that’s gone, Freddie and Fannie. That money allowed the United ple. We want to make sure they get And the point I guess that I’m trying States to purchase the largest banks in that money. In that case, those people to make is that the Federal Govern- this country, and the United States were their friends at the UAW, at the ment with this TARP bailout ended up Federal Government still owns those unions. taking that money and, rather than Mr. KING of Iowa. Will the gentle- private banks—Citibank and Bank of making our economy whole, rather lady yield? than creating jobs, because, remember, America. That money also allowed the Mrs. BACHMANN. Yes. Federal Government to buy AIG, the Mr. KING of Iowa. I thank the gen- President Obama said, again, this is largest insurance company in America. tlelady. with the stimulus spending, $787 worth Barack Obama, who is now our Presi- In reclaiming my time, I wanted to of stimulus spending, we were promised dent, was elected in November of 2008. explore this ‘‘secured creditor’’ so that that we wouldn’t see unemployment go Shortly after his election, he went to the Speaker and those who are observ- above 8 percent, and we were promised then-President George Bush and said, ing will understand clearly what this that he would create 31⁄2 million jobs. President Bush, I would like to have means. A ‘‘secured creditor’’ would be I know my colleague STEVE KING 1 something under $20 billion. I want to someone who holds collateral, which is knows that rather than creating 3 ⁄2 1 set up an automobile task force be- a guaranty that’s behind the bond. million jobs, we lost 3 ⁄2 million jobs. cause, if we don’t spend money now, I’m going to ask you to flesh this out So the spread of error for President Chrysler and GM could fail, and to pre- a little bit, but I’m going to say that it Obama is about 7 million jobs, let alone vent their failure and to prevent job includes, perhaps, real property, which the fact that the debt-paying genera- loss, we need to have an automobile could be the actual factory, itself. It tion that will pay back the $787 billion, task force fund. could be the equipment inside the fac- those today that are age 5 to age 30, President Bush was on his way out tory. It could be cash collateral, secu- that age cohort for the next 45 years of the door. He was ending his Presidency. rity. It could be the cars sitting as their work history will have to pay President Obama was about to begin ready for shipment to the dealers but back the same amount of money as if his. He gave that amount of money not the cars in the dealers’ lots, be- they went to the store and bought an over to President Obama and to his cause they own those cars. iPod for $300. So the 5- to 30-year-olds team to set up the automobile task Is that a reasonable picture of what for the next 45 years of their work life force. We all know what happened. The ‘‘secured collateral’’ is when you talk will have to go down to a store, buy an automobile task force was set up. Lit- about bondholders and the secured iPod, at the end of the month crush the erally, billions of dollars were pumped creditors? iPod under their heel; then buy an- into Chrysler and GM. I would yield to the gentlelady. other one the next month, crush it; buy What happened? Mrs. BACHMANN. That’s right, and one the next month. Every month for Chrysler filed bankruptcy. GM filed there is something else to know on se- 45 years of work history, the debt-pay- bankruptcy. In fact, it was so bad that cured creditors. ing generation in America will have to

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00070 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.125 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H3009 effectively buy an iPod and crush it society that was a meritocracy, that job paying in excess of $44,000 a year to and then replace it to equal what will rewarded people for their work, that replace the welfare benefits that be spent in this stimulus bill. That’s now has become a welfare state. they’re receiving from the Federal just one of the egregious spending bills. One of his definitive studies, Mr. Government. That is the level of gen- And when I think of the debt-paying Speaker, was this. He went in and erosity of the welfare benefits that are generation, the 5- to 30-year-olds are looked at households that are headed currently available to people in the saving up and would love to buy an by high school dropouts, without re- United States. There are people in my iPod, just own one. But now they’re gard to their immigration status; district that would love to be making condemned to, for 45 years of their life whether they were legal, illegal, for- an income of $44,000 a year. And yet every month, going out and buying a eign or natural-born Americans, what- that is what the United States is pro- brand new iPod and effectively giving ever their category might have been viding on average for welfare benefits it over to the Federal Government. with their immigration status, if they across the United States. Of course Mr. KING of Iowa. Reclaiming my headed households, and the average there are exceptions to that, but that’s time, I would add onto that that I household, a family of four, and they on average. Again I would refer people, hadn’t thought of that in terms of, and were a high school dropout, they would Mr. Speaker, to the heritage Web site this is a presumption that iPods will draw down an average of $32,000 a year and the work is by Robert Rector. stay the price they are, which we know in taxes in the whole collection of the Mr. KING of Iowa. Reclaiming my that competition and mass production benefits that are there and they would time, I appreciate the gentlelady re- will probably reduce the cost. But pay about $9,000 a year in taxes. They freshing that point. I had actually for- under current value and current dol- would draw down 32, they would pay gotten that number. I remember it now lars, a child born today, for being a about $9,000 a year in taxes. The net when you say it. $44,000. And now I natural-born American citizen, their cost to the taxpayer was $22,449 a year, think in terms of, if you have all the share of the national debt is $44,000. and that’s an average, and the average free time in the world to do whatever it That’s like here’s your mortgage, sign sustained life of that household, Mr. is you want to do and you have rent here with your little ink footprint Rector calculated, was 50 years. subsidy and heat subsidy and food when you’re born, we’ll wheel you right So the math comes out to about $1.5 stamps and the refundable child care out of the delivery room and you’ve got million to subsidize that household. credit and the earned income tax cred- a $44,000 debt that you have to pay the And we’ve got people here in this coun- it. interest and the principal on. That try that are arguing that we need to Mrs. BACHMANN. And you’ve got a same child born today, by the time open up our borders and bring in any home mortgage, a home mortgage that they start fifth grade in school, their number of people because our economy is subsidized by the taxpayers. Be- share of the national debt will be needs this labor and we need someone cause, remember, this was a part of the $88,000. That’s the difference between to pay for the Social Security of the problem with the amendments to the the Obama budget and the budget that baby boomers. Well, if they can’t sus- Community Reinvestment Act in the we had coming into the Obama admin- tain themselves here, if they’re under- 1990s, and it was this: An individual istration. That’s that kind of a burden educated, even though we have entre- could have no income, no assets, no that I’m going to presume cross-ref- preneurs that fit that category, that job. With all of that, you could still get erences to the $300 a month that the are going to make millions of dollars a mortgage just based on your welfare gentlelady from Minnesota has talked and create millions of jobs, on average benefits. This was a complete change in about. it is a net cost to the taxpayer of the way mortgages were given out. And Mrs. BACHMANN. Also, remember, $22,449 a year, $1.5 million for the dura- welfare is inherently unstable. that’s if every American is paying tion of that household, that’s a burden So to think that a 30-year mortgage taxes and paying the debt. But one on the taxpayers that is not a stimula- is being given to someone on the basis thing that we saw from this current fil- tion to the economy, it’s a drag and a of their welfare payments. We had ing of income tax is that 47 percent of drain on the economy. And the argu- never done that before in the United Americans paid no taxes. Now, that ment that they are paying Social Secu- States. And so what we saw is a cor- doesn’t mean that 47 percent of Ameri- rity with the payroll tax and, there- relation with a very high rate of fore- cans are deadbeats, because they fore, that’s good for those of us that closure. What inducement or incentive aren’t. Many Americans don’t have in- are looking at retirement, members of is there for an individual to save up to come because they’re senior citizens the baby boom generation, which I am buy a house, save up for a down pay- living off of fixed assets. There are a and Mrs. BACHMANN is not. That’s my ment, be frugal, do what you need to do number of reasons. But still the num- little pandering piece here, Mr. Speak- to have a good credit score to get into ber remains true, that 47 percent of er. a house when if in fact because of the Americans aren’t paying the taxes. An Mrs. BACHMANN. If I could just add Community Reinvestment Act, banks increasingly smaller group of people with Robert Rector from the Heritage were forced to not look at credit scores are paying a larger share of the taxes. Foundation, he also did a study on wel- essentially and to give mortgages to And so the debt burden on particular fare and increasing use of welfare in people on the basis of their welfare Americans will be especially egregious. the United States. The trajectory that checks? Mr. KING of Iowa. One of the impor- we’re on with the growth in welfare is And a lot of these mortgages that tant studies was done not that long ago also unsustainable. And we also recall were given would give cash back to by Robert Rector of the Heritage Foun- that shortly after President Obama people. Then people went out and took dation. He’s done a couple of very im- came into office, one thing that he did home equity loans against their home portant studies in the last 2 years. One is he rescinded all of the welfare re- and they had virtually nothing in the of them was the level of welfare that’s form regulations that were put into home. No wonder we’re in the problem here in the country. I believe he count- place by the Republican Congress after we’re in. If you change your banking ed 72 different programs that distribute they won control in 1994. So all of the standards to ones that don’t even rank the wealth from taxpayers in America reforms that actually got people off of up with a comic strip level of regula- to people who are sometimes taxpayers welfare and into working jobs and ac- tions, you’re going to get disastrous re- but more often a greater share of them tually plateaued the cost of the wel- sults. That’s what we’re in the middle are tax users. Of those programs, even fare, now all of those restraints have of living with now. though we brought down some of the been taken off. We’re seeing a dramatic Unfortunately the bill that’s going welfare in the mid nineties, it didn’t increase in the trajectory in welfare through the Senate is institutional- really reduce it so much as it produced spending. izing the worst aspects that there are a temporary plateau; and then it was But something else that was inter- about government policy that led to built up again with a whole series of esting from Robert Rector, he said that the financial meltdown. programs that we can’t track. if an individual on the full panoply of Mr. KING of Iowa. Reclaiming my Well, he has done so. And it’s a welfare benefits leaves welfare, that time, I think it might be useful for the chilling thing to see what happens to a that individual would have to seek a gentlelady and I to go through this list

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00071 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.126 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H3010 CONGRESSIONAL RECORD — HOUSE April 28, 2010 of things that have happened about the ment effectively control the energy in- further poison our legislation and our nationalization. Because if I look at dustry. That’s another 8 percent of the laws in America and further diminish the dialogue in the country, we’ve car- economy. He also wants to have the the vitality of the American people. ried this dialogue, I think, back and Federal Government control the finan- I recall that President Obama as a forth together and teamed up on it. cial services industry. Some people cal- candidate consistently was critical of The gentlelady has talked about $700 culate that at 15 percent. So that President Bush for not having an exit billion in TARP. We haven’t brought it would take us from 51, an additional 8 strategy in Iraq. He pounded on Presi- up so much, but it is part of this, that with cap and trade, to 59 percent. Then dent Bush for not having an exit strat- three large investment banks were na- if we add the financial services sector egy in Iraq. However, that exit strat- tionalized, either by action of or the on, that would take us then up to 74 egy actually is being implemented, support and approval of President percent. ironically by the very individual who Obama; along with AIG, the large in- President Obama hasn’t even been in was so critical. surance company, for some amount office 18 months, and we’re already at My point is that Barack Obama has around $180 billion. We might have the point where we could be at effec- been involved in the nationalization of used $185 billion at one time. It’s in tively nearly three-fourths of the pri- these huge sections of our private sec- that area. Then we’ve seen Fannie Mae vate economy under the thumb of tor, as the gentlelady has described, and Freddie Mac, which I did mention Uncle Sam, which is why we absolutely more than 51 percent of our private earlier. The President by his executive have no choice. This fall we have to see sector activity. And when we add the order has swallowed up the balance of constitutional conservatives retake financial sector to it, it becomes a the risk, put it on the taxpayers, to the both the House and the Senate, and number that approaches that three- tune of $5.5 trillion in the contingent then 2 years from now we need a Presi- quarters, as she has said. I sent a letter to Secretary Geithner, liability should Fannie and Freddie, ei- dent who will be a constitutional con- a formal letter. The response needed to ther combination of them, collapse. servative President so we can repeal While that’s going on, we watched be under oath because it was within a the government takeover of health the nationalization, the takeover, of hearing of Financial Services and Ag care and truly unwind the Federal Gov- two of our proud American car compa- hearing that we did jointly. The ques- ernment getting out of owning or con- nies: General Motors and Chrysler. We tion was if the President was elected at trolling private businesses. saw the CEO of General Motors fired least in part because he was critical of and replaced by a CEO that was essen- b 1900 President Bush for not having an exit tially de facto hired by the President of We have no choice, because otherwise strategy in Iraq, what’s President the United States. We’ve seen all but we will go the way of the rest of the Obama’s exit strategy to divest the two of the board of directors of General world. And all we have to do is take a taxpayers of their invested interest in Motors put in place by the President of page out of Greece. Greece is effec- this whole list of private entities that the United States who doesn’t even tively a bankrupt country that’s being we have talked about from the banks deny it. He takes a little bow and a bailed out by the European Union. Be- to AIG to Fannie and Freddie to the smile as if that’s what we should be cause of the bailouts that the European car companies? I didn’t get to the point doing with government. Union is giving to Greece, the Euro is of the student loan or ObamaCare be- We have them looking in at CEOs’ dropping in value. cause that hadn’t been nationalized yet pay. We look at the student loan pro- The same thing with the United at that point. gram that’s been taken over by the States. We can’t think that just be- Two months later I did get an an- Federal Government. We’ve watched cause we have been the greatest power swer. And it took a couple of days for the nationalization of our skin and ev- and the greatest Nation the world has the smartest lawyers I had to analyze erything inside it with ObamaCare ever known that we will always con- all the language, which boils down to taken over by the Federal Government. this: The response from Secretary of tinue that way. If we change our eco- Now we’re watching the financial insti- the Treasury Geithner, well, we will di- nomic policies so they have more in tutions all the way down to the small- vest ourselves of these assets when the line with left of socialist nations, if est credit transaction will be looked time is right. And only he would know that’s our economic policy that we are over by the Federal Government. This when that was. But there was no cri- embracing, then should we be surprised is a chilling display of the continuum teria for the Federal Government get- if the result is analogous to that of of history of the last 18 months. ting out of this business. Mrs. BACHMANN. What we have wit- countries that are left of socialist-em- It appears that there is a powerful in- nessed in the last 18 months is effec- bracing economies? That’s not who we centive that is driven within the White tively an economic coup. Because as are. It’s not our character as a people. House and within the progressives, the you have correctly stated with Fannie And I think it would shock the Amer- very liberals in this Congress, of which and Freddie, today the Federal Govern- ican people to realize, Mr. Speaker, there are at least 77, to continue the ment owns over 50 percent of all pri- that today the Federal Government nationalization, the management now vate home mortgages in this country. owns or controls 51 percent of the pri- that they are seeking to do of man- So over 50 percent of the homes, they vate economy. That cannot be. And I aging all of our financial industry, tak- aren’t owned by the people occupying know Congressman KING joins me in ing over student loans, and now every them paying the mortgage. It’s really putting his marker in the ground, say- credit account in America. And addi- owned by the Federal Government. Not ing that on his watch in Congress he tionally to that, I would give a new ex- only that, for anyone going to secure a will do everything he can, as I will do ample that was exposed to me the mortgage today for a home, nine times everything I can, to get the Federal other day. out of 10 they have to go to the Federal Government in its proper realm of ju- We have an example of how the Fed- Government to get their mortgage. So risdictional authority. eral Government takes over the insur- that number will swell for the number The government doesn’t have sov- ance industry. They did so in about of homes that are owned by the Federal ereignty over private business. Only 1963 or 1964 with the Federal flood in- Government. private business has sovereignty over surance program. They argued that the According to an economist from Ari- private business. private sector didn’t produce enough zona State University, if you add up all Mr. KING of Iowa. And reclaiming competition so that you couldn’t buy of those sectors of the private econ- my time, I do wish to join in that flood insurance in flood plains. Maybe omy, we’ve gone from, 18 months ago, pledge and putting my marker here. We there was a reason for that, because 100 percent of the private economy, pri- have joined together in the introduc- you would be flooded and the risks vate, now we have over 51 percent of tion of legislation to repeal were too high. So they set up the Fed- the private economy effectively di- ObamaCare, to pull it out root and eral flood insurance program to provide rectly owned or controlled by the Fed- branch, lock, stock, and barrel, to competition to the private sector that eral Government. eliminate ObamaCare so there is not was property and casualty at the time. But President Obama isn’t done. He one vestige of ObamaCare DNA left be- In a few years, it came to pass that— is demanding that the Federal Govern- hind that could reproduce itself and and it is true today—that the only

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00072 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.127 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE April 28, 2010 CONGRESSIONAL RECORD — HOUSE H3011 flood insurance that you can buy in eral Government intervention. They Year’s, but the deal is then you have to America is under the Federal flood in- want more Federal Government spend- clam up and not be clamoring for surance program. It’s also true today ing, which necessitates more Federal change any more, you have to live that that program is $19.2 billion in the Government borrowing, which will under all of the rules and all of the red because their premiums don’t re- mean more taxes. changes that you advocate for, here is flect the risk because they offer this But what are those taxes? The Presi- what I can guarantee you. They would insurance—and by the way, it’s com- dent has punted that issue to his new work night and day to make this list as pulsory to buy that insurance if you commission. But we all know a boat- complete as possible. borrow the money through a mortgage load of taxes needs to be raised. And we They would work right up to the last loan under a national bank. So it looks are in all likelihood looking at a new minute. They would have an amend- to me as though FEMA has been as- form of a national sales tax with a ment they were trying to slip in as the signed by Congress and is carrying out VAT tax, which would mean every item ball was dropping at Times Square to an action that has now expanded the we purchase would have a tax of about bring New Year’s about and grant them flood plains dramatically so that the 25 percent attached to it. So if you go their wish. And then when they were people in these flood plains have to buy through the value drive-in meal at granted everything they wished, they more and more flood insurance. McDonald’s or a fast food place, al- would stay up the rest of the night try- And I looked at one area within one though I guess we aren’t going to be al- ing to figure out how they got cheated county in my district where there are lowed to eat fast food anymore, it and what they forgot. And they would 2,200 more properties and 1,100 more looks like that’s the road we are going never keep their word about having to property owners that will be compelled down next, instead of paying a dollar live under the rules and the regulations to pay for the national flood insurance for that item, now we are going to have that were part of their wish list. premium. Presumably, if you expand to pay $1.25. We, on the other hand, believe in the areas that people are compelled to All of this means real consequences timeless values. We believe in the in- buy insurance and do business with the for real people’s lives. It means fewer tegrity of the human being. We believe Federal Government, then you will be choices we can make. And apparently that our rights come from God. We be- able to bring this Federal flood insur- what President Obama and the Demo- lieve in free enterprise capitalism. We ance out of their $19.2 billion in the crats who control Congress believe is believe in property rights. We think red. that the American people have too that people that work should live bet- Think of what happens when the Fed- much discretionary income and the ter than those that don’t. We believe eral Government sticks their regu- American people shouldn’t have that the wealth of this Nation is not a zero latory nose in every transaction in discretionary income. They really are sum game, but it’s something that’s America, every credit transaction, the party of big government and of built upon the entrepreneurial spirit every private flood insurance trans- government making the choices over and the foundations of free enterprise, action, every health insurance trans- our lives. property rights, individual rights, not action, operates and manufactures The Republicans have a different group rights. And the destiny of Amer- probably two-thirds of the American view. We believe that people make the ica is going to be determined by the cars, probably not quite that many ac- better choices, and we want them to amount of liberty that we can grant to tually, and has already taken over the keep their money. But unfortunately, people out of this Congress instead of secondary loan market to where they President Obama has laid all his cards diminish from them. are in more than 50 percent of the real down on the table, as have the Demo- And my mission is to go forth and to estate. crats that run Congress, and they have give back out of this Congress the Mrs. BACHMANN. It even gets more made a decision. It’s very clear. We rights that rightfully come from God minute than that because under the know because their bills are already to the people that have worked so hard bill that’s being debated right now over before us. Anyone can read them on- to build this country, and not to de- in the Senate, if a person has a trans- line. And they want to be involved in stroy it incrementally by these huge action where it’s four payments or the smallest financial transactions of bites out of our freedom and our lib- more, so presumably if you buy braces our lives. And ultimately they want to erty. And the question that comes to for your child and you are paying by decide who will get credit in this coun- me is what would a socialist do, what payments for your child’s braces. If try and who won’t. That will stifle would a progressive do, what would a you have four payments or more that’s every one of us in this country. And it liberal do that a communist would not? a financial transaction that could come won’t mean job growth, it won’t mean Where do they draw the line? This has under the purview of the Federal Gov- job creation. But we can do far better been a breathtaking sweep into a take- ernment. So the orthodontist would than that. over of huge chunks of our economy. then have to conform with regulatory Mr. KING of Iowa. Well, and they de- And they have designs on big chunks of requirements from the Federal Govern- cided who would get the credit on home the economy yet. When there is no re- ment. That’s how insidious this is get- loan mortgages based upon the cash straint except the American people and ting. flow of the welfare check. And it didn’t the constitutional conservatives that As a matter of fact, the bill I believe work out so well. That’s one of the ex- are filling the streets of America. on the House side would give the Fed- amples. I am standing here thinking They come out with their American eral Government the authority about this. Where would they stop? A flags, their yellow Gadsden ‘‘Don’t through a new pay czar that has been party whose policy is change, who Tread on Me’’ flags, their constitutions selected who would establish the wages don’t have any timeless values, there is in their pocket, and patriotism in their of like a bank teller in Peoria, Illinois. not even a definition of truth over on hearts, and tears running down their So the Federal Government isn’t just that side that they can agree on, it is cheeks because of what they see is hap- getting into big things, they are get- about change. pening to America under this ruling ting into every small area of our life. And I have often said that if you troika of Obama, PELOSI, and REID. And I think we just haven’t begun to would give me the magic wand and I And it’s going to turn around, Mr. see the levels of involvement. could grant to the progressives, the lib- Speaker. It’s going to turn around this The other thing you had mentioned, erals, the people that fit that defini- November. It’s coming back into the Congressman KING, and Madam Speak- tion of folks on that side of the aisle hands of the people. And we will have a er, is that you had wondered about their wish, which would be the entire lot of work to do to clean up the mess. President Obama and where he is wish list of all the things that they One of the things is on the immigra- going. There is no exit strategy be- could compile on that list between now tion cards, the flash cards that train cause this current financial reform bill and New Year’s, and say to them you people to study their naturalization that we are looking at is all we need to get all of this, you get all of this, every and pass the test. On one side it will know about where President Obama policy that you can possibly dream of, say, ‘‘Who is the father of our coun- and the Democrats that control Con- and we are going to give it to you when try?’’ You snap it around and it says, gress want to go. They want more Fed- the ball drops at Times Square for New ‘‘George Washington.’’ You pick up I

VerDate Mar 15 2010 03:17 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00073 Fmt 4634 Sfmt 0634 E:\CR\FM\K28AP7.128 H28APPT1 cprice-sewell on DSK8KYBLC1PROD with HOUSE H3012 CONGRESSIONAL RECORD — HOUSE April 28, 2010 think it’s card 11, and it says, ‘‘What is p.m.), the House adjourned until to- 7236. A letter from the Director Office of the economic system of the United morrow, Thursday, April 29, 2010, at 10 Sustainable Fisheries, NMFS, National Oce- States?’’ You flap that card around and a.m. anic and Atmospheric Administration, trans- mitting the Administration’s final rule — it says, ‘‘Free enterprise capitalism.’’ f Fisheries of the Exclusive Economic Zone It probably isn’t the case today given EXECUTIVE COMMUNICATIONS, Off Alaska; Sablefish Managed Under the In- what’s happened. ETC. dividual Fishing Quota Program [Docket I don’t want to have to pull that card No.: 0910131362-0087-02 and 0910131363-0087-02] out of the deck. I want the freedom, Under clause 2 of rule XIV, executive (RIN: 0648-XV03) received April 9, 2010, pursu- the liberty card in the deck. And I communications were taken from the ant to 5 U.S.C. 801(a)(1)(A); to the Committee Speaker’s table and referred as follows: on Natural Resources. want to be able to see my children and 7237. A letter from the Acting Director, Of- 7227. A letter from the Assistant Secretary, grandchildren and every succeeding fice of Sustainable Fisheries, NMFS, Na- Financial Management and Comptroller, De- generation not live the American tional Oceanic and Atmospheric Administra- partment of the Navy, transmitting Fiscal tion, transmitting the Administration’s final dream, but live the American dream in Year 2009 annual report on the authority rule — Fisheries of the Exclusive Economic addition with a higher standard of liv- granted therein to pay for meals sold by Zone Off Alaska; Pollock in Statistical Area ing and greater aspirations and more messes for United States Navy and Naval liberty than we had, which is tremen- 630 in the Gulf of Alaska [Docket No.: Auxiliary vessels; to the Committee on 0910091344-9056-02] (RIN: 0648-XV12) received dous. Armed Services. April 9, 2010, pursuant to 5 U.S.C. 801(a)(1)(A); 7228. A letter from the Chairman, Occupa- This is what is pulling at the heart of to the Committee on Natural Resources. America. This is why the constitu- tional Safety and Health Review Commis- 7238. A letter from the Deputy Assistant sion, transmitting Buy American Act report tional conservatives, which are com- Administrator for Regulatory Programs, for Fiscal Year 2009; to the Committee on NMFS, National Oceanic and Atmospheric prised of the Obamaites with buyers’ Education and Labor. remorse, the independents that really Administration, transmitting the Adminis- 7229. A letter from the Secretary, Depart- tration’s final rule — Magnuson-Stevens don’t want a label but they understand ment of Health and Human Services, trans- Fishery Conservation and Management Act the Constitution and free enterprise, mitting written notification of the deter- Provisions; Fisheries of the Northeastern the 9–12 Project people that have been mination that a public health emergency ex- United States; Monkfish Fishery [Docket so activated here on September 12, all ists and has existed in the state of North Da- No.: 0907221160-91412-02] (RIN: 0648-AY01) re- of the Tea Party groups that are there, kota since February 26, 2010, pursuant to 42 ceived April 8, 2010, pursuant to 5 U.S.C. U.S.C. 247d(a) Public Law 107-188, section the conservative Republicans, in fact, 801(a)(1)(A); to the Committee on Natural 144(a); to the Committee on Energy and Com- Resources. almost every Republican constitu- merce. 7239. A letter from the Paralegal Spe- tional conservative, people that under- 7230. A letter from the Department Direc- cialist, Department of Transportation, trans- stand that our default position needs tor, Regulations Policy and Management mitting the Department’s final rule — Air- to be the Constitution itself and not Staff, Department of Health and Human worthiness Directives; Various Aircraft some activist judge’s idea of what they Services, transmitting the Department’s Equipped With Honeywell Primus II RNZ- would want that Constitution to say, ‘‘Major’’ final rule — Regulations Restrict- 850()/-851() Integrated Navigation Units ing the Sale and Distribution of Cigarettes [Docket No.: FAA-2008-0556; Directorate but what it actually says, what it was and Smokeless Tobacco To Protect Children Identifier 2007-NM-028-AD; Amendment 39- understood to mean at the time of its and Adolescents [Docket No.: FDA-1995-N- 16246; AD 2010-07-02] (RIN: 2120-AA64) received ratification. 0259] (formerly Docket No. 1995N-0253) (RIN: April 13, 2010, pursuant to 5 U.S.C. f 0910-AG33) received April 20, 2010, pursuant 801(a)(1)(A); to the Committee on Transpor- to 5 U.S.C. 801(a)(1)(A); to the Committee on tation and Infrastructure. LEAVE OF ABSENCE Energy and Commerce. 7240. A letter from the Paralegal Spe- 7231. A letter from the Administrator, En- cialist, Department of Transportation, trans- By unanimous consent, leave of ab- vironmental Protection Agency, transmit- mitting the Department’s final rule — Cer- sence was granted to: ting the FY 2008 Superfund Five-Year Review tification of Aircraft and Airmen for the Op- Mr. CULBERSON (at the request of Mr. Report to Congress, in accordance with the eration of Light-Sport Aircraft; Modifica- BOEHNER) for today until 3:15 p.m. on requirements in Section 121(c) of the Com- tions to Rules for Sport Pilots and Flight In- account of illness. prehensive Environmental Response, Com- structors With a Sport Pilot Rating; Correc- pensation, and Liability Act, as amended by tion [Docket No.: FAA-2007-29015; Amdt. No. f the Superfund Amendments and Reauthor- 61-125A] (RIN: 2120-AJ10) received April 13, 2010, pursuant to 5 U.S.C. 801(a)(1)(A); to the SPECIAL ORDERS GRANTED ization Act of 1986; to the Committee on En- ergy and Commerce. Committee on Transportation and Infra- By unanimous consent, permission to 7232. A letter from the Deputy Chief structure. address the House, following the legis- Human Capital Officer and Director for 7241. A letter from the Paralegal Spe- Human Resources Management, Department cialist, Department of Transportation, trans- lative program and any special orders mitting the Department’s final rule — Air- heretofore entered, was granted to: of Commerce, transmitting the Department’s report on the use of the Category Rating worthiness Directives; The Boeing Company (The following Members (at the re- Model 767-200, -300, and -300F Series Air- System; to the Committee on Oversight and planes [Docket No.: FAA-2008-0978; Direc- quest of Ms. WOOLSEY) to revise and ex- Government Reform. tend their remarks and include extra- 7233. A letter from the Chairman, National torate Identifier 2008-NM-014-AD; Amend- neous material:) Labor Relations Board, transmitting the ment 39-16234; AD 2010-06-10] (RIN: 2120-AA64) received April 13, 2010, pursuant to 5 U.S.C. Board’s FY 2009 Buy American Act report; to Ms. WOOLSEY, for 5 minutes, today. 801(a)(1)(A); to the Committee on Transpor- the Committee on Oversight and Govern- Mr. DAVIS of Illinois, for 5 minutes, tation and Infrastructure. today. ment Reform. 7242. A letter from the Paralegal Spe- 7234. A letter from the Deputy Assistant cialist, Department of Transportation, trans- Ms. KAPTUR, for 5 minutes, today. Administrator for Regulatory Programs, mitting the Department’s final rule — Estab- Mr. DEFAZIO, for 5 minutes, today. NMFS, National Oceanic and Atmospheric (The following Members (at the re- lishment of Class E Airspace; Kindred, ND Administration, transmitting the Adminis- [Docket No.: FAA-2009-0802; Airspace Docket quest of Mr. POE of Texas) to revise and tration’s final rule — Fisheries Off West No. 09-AGL-22] received April 13, 2010, pursu- extend their remarks and include ex- Coast States; Coastal Pelagic Species Fish- ant to 5 U.S.C. 801(a)(1)(A); to the Committee traneous material:) eries; Annual Specifications [Docket No.: on Transportation and Infrastructure. Mr. MORAN of Kansas, for 5 minutes, 0912281446-0111-02] (RIN: 0648-XT32) received 7243. A letter from the Paralegal Spe- May 5. April 9, 2010, pursuant to 5 U.S.C. 801(a)(1)(A); cialist, Department of Transportation, trans- to the Committee on Natural Resources. Mr. POE of Texas, for 5 minutes, May mitting the Department’s final rule — Air- 7235. A letter from the Director Office of worthiness Directives; SOCATA Model TBM 5. Sustainable Fisheries, NMFS, National Oce- 700 Airplanes [Docket No.: FAA-2009-1256; Di- Mr. JONES, for 5 minutes, May 5. anic and Atmospheric Administration, trans- rectorate Identifier 2009-CE-064-AD; Amend- f mitting the Administration’s final rule — ment 39-16252; AD 2010-07-07] (RIN: 2120-AA64) Fisheries of the Caribbean, Gulf of Mexico, received April 13, 2010, pursuant to 5 U.S.C. ADJOURNMENT and South Atlantic; Snapper-Grouper Fish- 801(a)(1)(A); to the Committee on Transpor- ery of the South Atlantic; Closure [Docket tation and Infrastructure. Mr. KING of Iowa. Madam Speaker, I No.: 040205043-4043-01] (RIN: 0648-XU86) re- 7244. A letter from the Paralegal Spe- move that the House do now adjourn. ceived April 9, 2010, pursuant to 5 U.S.C. cialist, Department of Transportation, trans- The motion was agreed to; accord- 801(a)(1)(A); to the Committee on Natural mitting the Department’s final rule — Air- ingly (at 7 o’clock and 14 minutes Resources. worthiness Directives; Aircraft Industries

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a.s. Model L23 Super Blanik Gliders [Docket torate Identifier 2009-NM-107-AD; Amend- BACHUS, Mrs. HALVORSON, Mr. No.: FAA-2010-0357; Directorate Identifier ment 39-16255; AD 2010-07-10] (RIN: 2120-AA64) WHITFIELD, Mr. HODES, Mr. TAYLOR, 2010-CE-017-AD; Amendment 39-16256; AD received April 13, 2010, pursuant to 5 U.S.C. Mr. GERLACH, Mr. CALVERT, Mr. 2010-08-01] (RIN: 2120-AA64) received April 13, 801(a)(1)(A); to the Committee on Transpor- PERRIELLO, Ms. GIFFORDS, Mr. 2010, pursuant to 5 U.S.C. 801(a)(1)(A); to the tation and Infrastructure. MCNERNEY, Mr. STUPAK, Ms. MARKEY Committee on Transportation and Infra- 7253. A letter from the President and Chief of Colorado, Mr. DENT, Mr. TANNER, structure. Executive Officer, Amtrak, National Rail- and Mr. BISHOP of Utah): 7245. A letter from the Paralegal Spe- road Passenger Corporation, transmitting H.R. 5162. A bill to restore Second Amend- cialist, Department of Transportation, trans- the Corporation’s FY 2011 General and Legis- ment rights in the District of Columbia; to mitting the Department’s final rule — Air- lative annual report supporting documents; the Committee on Oversight and Govern- worthiness Directives; Turbomeca ARRIEL to the Committee on Transportation and In- ment Reform. 1B, 1D, 1D1, 2B, and 2B1 Turboshaft Engines frastructure. By Mr. ALTMIRE (for himself, Mr. [Docket No.: FAA-2009-0302; Directorate 7254. A letter from the Chairman, Board of BARTON of Texas, Mr. FOSTER, Mr. Identifier 2009-NE-09- AD; Amendment 39- Veterans’ Appeals, Department of Veterans HALL of Texas, Mr. ROSS, Mr. UPTON, 16245; AD 2009-08-08R1] (RIN: 2120-AA64) re- Affairs, transmitting a copy of the Report of Mr. MELANCON, Mrs. MYRICK, Mr. ceived April 13, 2010, pursuant to 5 U.S.C. the Chairman for FY 2009; to the Committee MCMAHON, Mr. ROGERS of Michigan, 801(a)(1)(A); to the Committee on Transpor- on Veterans’ Affairs. Mr. MURPHY of New York, Mr. BART- tation and Infrastructure. LETT, Mr. PERRIELLO, Mrs. BIGGERT, f 7246. A letter from the Paralegal Spe- Mr. MURPHY of Connecticut, Mr. cialist, Department of Transportation, trans- REPORTS OF COMMITTEES ON SHIMKUS, Mr. SALAZAR, Mrs. BONO mitting the Department’s final rule — PUBLIC BILLS AND RESOLUTIONS MACK, Mrs. HALVORSON, and Mr. Amendment to Restricted Area R-2510A; El GRIFFITH): Centro, CA [Docket No.: FAA-2010-0346; Air- Under clause 2 of rule XIII, reports of H.R. 5163. A bill to amend the Energy Pol- space Docket No. 10-AWP-3] (RIN: 2120-AA66) committees were delivered to the Clerk icy Act of 2005 to require the Secretary of received April 13, 2010, pursuant to 5 U.S.C. for printing and reference to the proper Energy to carry out a research program to 801(a)(1)(A); to the Committee on Transpor- calendar, as follows: reduce manufacturing and construction costs relating to nuclear reactors, and for other tation and Infrastructure. Mr. POLIS: Committee on Rules. House 7247. A letter from the Paralegal Spe- purposes; to the Committee on Science and Resolution 1305. Resolution providing for cialist, Department of Transportation, trans- Technology. consideration of the bill (H.R. 2499) to pro- mitting the Department’s final rule — Air- By Mr. ALTMIRE (for himself, Mr. vide for a federally sanctioned self-deter- worthiness Directives; Kelly Aerospace En- BARTON of Texas, Mr. FOSTER, Mr. mination process for the people of Puerto ergy Systems, LLC Rebuilt Turbochargers UPTON, Mr. ROSS, Mrs. MYRICK, Mr. Rico (Rept. 111–468). Referred to the House [Docket No.: FAA-2009-1259; Directorate MELANCON, Mr. ROGERS of Michigan, Calendar. Identifier 2009-NE-41-AD; Amendment 39- Mr. MCMAHON, Mr. BARTLETT, Mr. 16253; AD 2010-07-08] (RIN: 2120-AA64) received f MURPHY of New York, Mrs. BIGGERT, Mr. PERRIELLO, Mr. SHIMKUS, Mr. April 13, 2010, pursuant to 5 U.S.C. PUBLIC BILLS AND RESOLUTIONS 801(a)(1)(A); to the Committee on Transpor- MURPHY of Connecticut, Mrs. BONO tation and Infrastructure. Under clause 2 of rule XII, public MACK, Mr. SALAZAR, Mr. GRIFFITH, 7248. A letter from the Paralegal Spe- bills and resolutions of the following and Mrs. HALVORSON): cialist, Department of Transportation, trans- titles were introduced and severally re- H.R. 5164. A bill to amend the Energy Pol- icy Act of 2005 to require the Secretary of mitting the Department’s final rule — Air- ferred, as follows: worthiness Directives; Bombardier, Inc. Energy to carry out programs to develop and Model BD-100-1A10 (Challenger 300) Airplanes By Mr. MILLER of North Carolina (for demonstrate 2 small modular nuclear reactor [Docket No.: FAA-2009-1214; Directorate himself, Mr. CHANDLER, Mr. COHEN, designs, and for other purposes; to the Com- Identifier 2009-NM-091-AD; Amendment 39- Mr. ELLISON, and Mr. SHERMAN): mittee on Energy and Commerce, and in ad- 16251; AD 2010-07-06] (RIN: 2120-AA64) received H.R. 5159. A bill to provide for a safe, ac- dition to the Committee on Science and April 13, 2010, pursuant to 5 U.S.C. countable, fair, and efficient banking sys- Technology, for a period to be subsequently 801(a)(1)(A); to the Committee on Transpor- tem, and for other purposes; to the Com- determined by the Speaker, in each case for tation and Infrastructure. mittee on Financial Services. consideration of such provisions as fall with- 7249. A letter from the Paralegal Spe- By Mr. RANGEL (for himself, Mr. in the jurisdiction of the committee con- cialist, Department of Transportation, trans- LEVIN, and Mr. CAMP): cerned. mitting the Department’s final rule — Air- H.R. 5160. A bill to extend the Caribbean By Mr. CASTLE: worthiness Directives; Rolls-Royce plc Basin Economic Recovery Act, to provide H.R. 5165. A bill to amend title V of the El- ementary and Secondary Education Act of RB211-Trent 700 Series Turbofan Engines customs support services to Haiti, and for 1965 to provide grants to State educational [Docket No.: FAA-2005-19559; Directorate other purposes; to the Committee on Ways agencies in order to provide subgrants to eli- Identifier 2004-NE-03-AD; Amendment 39- and Means. gible local entities to promote financial edu- 16254; AD 2010-07-09] (RIN: 2120-AA64) received By Mr. REYES: H.R. 5161. A bill to authorize appropria- cation to students in the classroom; to the April 13, 2010, pursuant to 5 U.S.C. Committee on Education and Labor. 801(a)(1)(A); to the Committee on Transpor- tions for fiscal year 2011 for intelligence and intelligence-related activities of the United By Mr. DENT: tation and Infrastructure. H.R. 5166. A bill to amend the Immigration 7250. A letter from the Paralegal Spe- States Government, the Community Man- agement Account, and the Central Intel- and Nationality Act to provide for the loss of cialist, Department of Transportation, trans- United States citizenship by individuals who ligence Agency Retirement and Disability mitting the Department’s final rule — Air- are unprivileged enemy belligerents; to the System, and for other purposes; to the Com- worthiness Directives; The Boeing Company Committee on the Judiciary. mittee on Intelligence (Permanent Select). Model 747-200C and -200F Series Airplanes By Mr. ELLISON: [Docket No.: FAA-2009-0684; Directorate By Mr. CHILDERS (for himself, Mr. H.R. 5167. A bill to amend the Richard B. Identifier 2008-NM-149-AD; Amendment 39- SOUDER, Mr. ALTMIRE, Mr. DAVIS of Russell National School Lunch Act to reduce 16247; AD 2010-07-03] (RIN: 2120-AA64) received Alabama, Mr. MELANCON, Mr. MICA, stigma associated with unpaid meal fees, and April 13, 2010, pursuant to 5 U.S.C. Mr. CARNEY, Mr. BURTON of Indiana, for other purposes; to the Committee on 801(a)(1)(A); to the Committee on Transpor- Mr. DAVIS of Tennessee, Mr. SHULER, Education and Labor. tation and Infrastructure. Mr. ROSS, Mr. GINGREY of Georgia, By Mr. ELLSWORTH: 7251. A letter from the Paralegal Spe- Mr. SESSIONS, Mr. SHUSTER, Mr. H.R. 5168. A bill to amend the Internal Rev- cialist, Department of Transportation, trans- WESTMORELAND, Mr. WILSON of South enue Code of 1986 to extend the first-time mitting the Department’s final rule — Air- Carolina, Mr. SIMPSON, Mr. ELLS- homebuyer tax credit through December 31, worthiness Directives; The Boeing Company WORTH, Mr. WILSON of Ohio, Mr. 2010, and for other purposes; to the Com- 737-600, -700, -700C, -800, -900, and -900ER Se- BISHOP of Georgia, Mr. CARDOZA, Mr. mittee on Ways and Means. ries Airplanes [Docket No.: FAA-2010-0230; BOUCHER, Mr. KAGEN, Mr. BARROW, By Mr. GENE GREEN of Texas: Directorate Identifier 2010-NM-071-AD; Mr. WALZ, Mr. HILL, Mr. HOLDEN, Mr. H.R. 5169. A bill to amend title 49, United Amendment 39-16250; AD 2010-06-51] (RIN: HEINRICH, Mr. YOUNG of Alaska, Mr. States Code, to require the Secretary of 2120-AA64) received April 13, 2010, pursuant PATRICK J. MURPHY of Pennsylvania, Transportation to promulgate rules to re- to 5 U.S.C. 801(a)(1)(A); to the Committee on Mr. MACK, Mr. MARSHALL, Mr. quire that all motor vehicles be equipped Transportation and Infrastructure. KISSELL, Mr. MORAN of Kansas, Mr. with event data recorders by 2015, and for 7252. A letter from the Paralegal Spe- RAHALL, Mr. DINGELL, Mr. DONNELLY other purposes; to the Committee on Energy cialist, Department of Transportation, trans- of Indiana, Mr. KINGSTON, Mr. and Commerce. mitting the Department’s final rule — Air- MINNICK, Mr. TIAHRT, Mr. TEAGUE, By Mr. HOLT (for himself, Ms. SHEA- worthiness Directives; Airbus Model A300 B2- Mr. JONES, Mr. OWENS, Ms. JENKINS, PORTER, Mr. GEORGE MILLER of Cali- 1C, B2K-3C, B2-203, B4-2C, B4-103, and B4-203 Mr. BOYD, Mr. GENE GREEN of Texas, fornia, Ms. BERKLEY, Mr. BARTLETT, Airplanes [Docket No.: FAA-2009-1166; Direc- Mr. CHANDLER, Mr. MCHENRY, Mr. and Mr. HIMES):

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H.R. 5170. A bill to amend title 10, United to House Joint Resolution 1302 urging the H.R. 3781: Mr. SALAZAR. States Code, to direct the Secretary of De- United States Congress to enact the Lyme H.R. 3790: Mr. MCMORRIS RODGERS, Mr. fense to provide members of the Individual and Tick-Borne Disease Prevention, Edu- COLE, Mr. SMITH of New Jersey, and Mr. ROG- Ready Reserve who served in Afghanistan or cation, and Research Act of 2009; to the Com- ERS of Michigan. Iraq with information on counseling to pre- mittee on Energy and Commerce. H.R. 3995: Mr. CLAY. vent suicide; to the Committee on Armed H.R. 4011: Mr. FORBES. f Services. H.R. 4085: Mr. MINNICK and Mr. STARK. ´ By Mr. GARY G. MILLER of Cali- ADDITIONAL SPONSORS H.R. 4109: Ms. VELAZQUEZ. fornia: H.R. 4191: Mr. DEUTCH. H.R. 5171. A bill to create a program under Under clause 7 of rule XII, sponsors H.R. 4286: Mr. STARK and Mr. CLAY. which qualified and available United States were added to public bills and resolu- H.R. 4301: Mr. STARK. construction workers and appropriate equip- tions as follows: H.R. 4302: Mr. MCNERNEY, Mr. HASTINGS of Florida, Mr. AL GREEN of Texas, Mr. ROSS, ment can be sent to Haiti to assist Haitians H.R. 24: Ms. MARKEY of Colorado, Mr. CAN- Mr. JOHNSON of Georgia, Mrs. DAHLKEMPER, in the rebuilding of their country after the TOR, Ms. KILROY, Mr. POLIS, Mr. INSLEE, and Mr. SKELTON, Ms. HERSETH SANDLIN, Ms. devastating January 12, 2010, earthquake, as Mr. PERRIELLO. MARKEY of Colorado, Mr. MCGOVERN, and requested by the government of Haiti, and H.R. 40: Mr. SERRANO, Mr. MEEKS of New Mrs. CAPPS. for other purposes; to the Committee on For- York, Mr. ELLISON, Mr. JACKSON of Illinois, H.R. 4321: Mr. HINCHEY. eign Affairs. Mr. FILNER, and Mr. KUCINICH. By Mr. SARBANES (for himself, Mr. H.R. 4322: Mr. PASTOR of Arizona. H.R. 211: Ms. HIRONO. H.R. 4472: Ms. KILPATRICK of Michigan and POLIS, and Ms. FUDGE): H.R. 275: Mr. TIBERI, Mr. PETRI, Ms. TITUS, Mr. SCHAUER. H.R. 5172. A bill to amend the Elementary and Mr. COLE. H.R. 4530: Mr. SARBANES and Mr. YARMUTH. and Secondary Education Act of 1965 (20 H.R. 313: Mr. MEEKS of New York. H.R. 4544: Mr. HOLT. U.S.C. 6301 et seq.) to authorize competitive H.R. 333: Mr. VAN HOLLEN and Mr. STARK. H.R. 4671: Mr. STARK. grants to train school principals in instruc- H.R. 442: Mr. BOSWELL. H.R. 4674: Mr. SULLIVAN. tional leadership skills and to promote the H.R. 484: Mr. WILSON of South Carolina. H.R. 4684: Mr. BOCCIERI and Mr. DAVIS of incorporation of standards of instructional H.R. 673: Ms. PINGREE of Maine. Tennessee. leadership into State-level principal certifi- H.R. 855: Mr. HEINRICH. H.R. 4720: Mr. CARNAHAN, and Ms. TSONGAS. cation or licensure; to the Committee on H.R. 886: Ms. WASSERMAN SCHULTZ, Mr. H.R. 4722: Mr. KIND, Mr. BOUCHER, and Mr. Education and Labor. ELLISON, Mr. LARSEN of Washington, Mr. JACKSON of Illinois. By Mr. TIAHRT (for himself, Mr. LATHAM, Mr. PLATTS, Ms. CLARKE, and Mr. H.R. 4728: Mr. BILIRAKIS, Mr. SCHOCK, and BILBRAY, Mr. ROHRABACHER, Mr. ARCURI. Mr. ISSA. AKIN, and Mr. CALVERT): H.R. 1017: Mr. ARCURI. H.R. 4755: Mr. ROGERS of Michigan. H.R. 5173. A bill to provide for certain en- H.R. 1034: Mr. BOUCHER. H.R. 4812: Ms. CASTOR of Florida and Mr. hanced border security measures, and for H.R. 1126: Ms. FUDGE and Mr. LUJA´ N. SCHIFF. other purposes; to the Committee on Home- H.R. 1173: Mr. ROONEY. H.R. 4844: Mrs. MCMORRIS RODGERS and Mr. land Security. H.R. 1193: Ms. MARKEY of Colorado, Mr. KAGEN. By Mr. TONKO: VAN HOLLEN, and Mr. HOLT. H.R. 4850: Ms. KOSMAS and Mr. H.R. 5174. A bill to amend the Internal Rev- H.R. 1410: Mr. BOSWELL. BLUMENAUER. enue Code of 1986 to modify the credit for H.R. 1422: Mr. TIM MURPHY of Pennsyl- H.R. 4858: Mr. POLIS. qualified fuel cell motor vehicles by main- vania. H.R. 4869: Mr. CLAY and Mr. THOMPSON of taining the level of credit for vehicles placed H.R. 1503: Mr. CONAWAY. Mississippi. in service after 2009 and by allowing the H.R. 1547: Mr. GARAMENDI, Mr. SENSEN- H.R. 4876: Mr. DINGELL and Mr. KILDEE. credit for certain off-highway vehicles; to BRENNER, and Mr. TIBERI. H.R. 4879: Mr. WELCH, Mr. MOORE of Kan- the Committee on Ways and Means. H.R. 1551: Ms. HARMAN. sas, Mr. CARNAHAN, and Mr. MCDERMOTT. By Ms. LEE of California (for herself, H.R. 1570: Ms. LEE of California. H.R. 4886: Mr. CALVERT. H.R. 4890: Mr. COHEN. Mr. BAIRD, Mr. FILNER, and Mr. H.R. 1587: Mr. ROSKAM. H.R. 4903: Mr. COLE. ELLISON): H.R. 1596: Ms. RICHARDSON. H.R. 4933: Mr. STARK. H. Con. Res. 270. Concurrent resolution H.R. 1597: Mr. HODES. H.R. 4947: Mr. BOOZMAN and Mr. KING of calling on the United States Government to H.R. 1708: Ms. SHEA-PORTER. Iowa. investigate the case of Tristan Anderson, a H.R. 1806: Mr. BLUMENAUER. H.R. 4959: Mr. DOGGETT and Mr. MCNERNEY. United States citizen from Oakland, Cali- H.R. 1826: Ms. FUDGE. H.R. 4960: Mr. OLSON. fornia, who was critically injured in the H.R. 1939: Mr. LEE of New York. H.R. 4972: Mr. PRICE of Georgia. West Bank village of Ni’lin on March 13, 2009, ESTMORELAND ITTS H.R. 2000: Mr. W , Mr. P , H.R. 5000: Ms. BERKLEY and Mr. CAPUANO. and expressing sympathy to Tristan Ander- and Mr. YOUNG of Florida. son and his family, friends, and loved ones H.R. 5015: Mrs. NAPOLITANO. H.R. 2030: Mr. CAPUANO. H.R. 5019: Mr. CONNOLLY of Virginia, Mr. during this trying time; to the Committee on H.R. 2049: Mr. GINGREY of Georgia. BISHOP of New York, Mr. SCOTT of Georgia, Foreign Affairs. H.R. 2067: Mr. STARK, Ms. SPEIER, and Mr. Mr. POLIS, Mr. PATRICK J. MURPHY of Penn- By Ms. NORTON: WAXMAN. sylvania, Ms. NORTON, Mr. CARNEY, Mr. JACK- H. Res. 1306. A resolution expressing the H.R. 2149: Mr. TAYLOR and Mr. BARROW. SON of Illinois, Mr. DOYLE, Ms. RICHARDSON, sense of the House of Representatives that a H.R. 2378: Mr. FOSTER. Ms. HIRONO, Ms. MATSUI, and Mr. PERRIELLO. postage stamp should be issued to honor the H.R. 2413: Mr. COHEN, Mr. CARNAHAN, and H.R. 5037: Mr. CAPUANO and Mr. FRANK of lives of Joseph Curseen, Jr. and Thomas Mr. RYAN of Ohio. Massachusetts. Morris, Jr., the two United States Postal H.R. 2417: Mr. HODES and Ms. BERKLEY. H.R. 5040: Mr. SKELTON. Service workers and District of Columbia na- H.R. 2555: Mr. FILNER, Mr. MICA, and Mr. H.R. 5041: Mr. CARSON of Indiana and Ms. tives who died as a result of their contact DEUTCH. GIFFORDS. with anthrax while working at the United H.R. 2906: Mr. BLUMENAUER and Mr. H.R. 5091: Ms. MOORE of Wisconsin and Mr. States Postal Service facility located at 900 MCGOVERN. LEWIS of Georgia. Brentwood Road, NE, Washington, D.C., dur- H.R. 3035: Mr. MCGOVERN, Mr. ELLISON, Mr. H.R. 5092: Ms. HIRONO, Mr. MOORE of Kan- ing the anthrax attack in the fall of 2001; to HARE, Ms. MOORE of Wisconsin, Mr. sas, Mr. PAYNE, Ms. ESHOO, Ms. KILPATRICK the Committee on Oversight and Govern- LATOURETTE, Mr. CHANDLER, Ms. MCCOLLUM, of Michigan, Mr. PASTOR of Arizona, Mr. ment Reform. Mr. BISHOP of Georgia, Mr. CLAY, Mr. AUS- RADANOVICH, Mr. SCOTT of Georgia, Mr. f TRIA, and Mr. SCHOCK. COFFMAN of Colorado, Ms. EDDIE BERNICE H.R. 3151: Mr. BISHOP of Georgia and Mr. JOHNSON of Texas, Mr. SMITH of New Jersey, MEMORIALS KAGEN. Mr. ROE of Tennessee, Ms. LEE of California, Under clause 4 of rule XXII, memo- H.R. 3339: Mr. PASTOR of Arizona. Mrs. NAPOLITANO, Mrs. MILLER of Michigan, H.R. 3393: Mr. MICHAUD. rials were presented and referred as fol- Mr. CARNAHAN, and Mr. YOUNG of Florida. H.R. 3421: Mr. MCCARTHY of New York. H.R. 5117: Ms. ZOE LOFGREN of California, lows: H.R. 3439: Mr. CONNOLLY of Virginia. Mr. POMEROY, and Ms. WOOLSEY. 267. The SPEAKER presented a memorial H.R. 3457: Ms. WOOLSEY. H.R. 5121: Mr. CLAY. of the House of Representatives of the State H.R. 3517: Mr. MCDERMOTT. H.R. 5125: Mr. FARR. of Maine, relative to House Joint Resolution H.R. 3564: Mr. CUELLAR. H.R. 5128: Mr. GEORGE MILLER of Cali- 1326 urging the United States Congress to H.R. 3577: Ms. PINGREE of Maine. fornia, Mr. MATHESON, Mr. MEEKS of New support the restoring and conserving the H.R. 3615: Mrs. DAHLKEMPER and Mr. York, Mr. HODES, Mr. SHULER, Mr. MARKEY Northeast Great Waters; to the Committee THOMPSON of Pennsylvania. of Massachusetts, Ms. MARKEY of Colorado, on Appropriations. H.R. 3662: Mr. ELLISON. Mr. SALAZAR, Mrs. CAPPS, Mr. NADLER of 268. Also, a memorial of the House of Rep- H.R. 3712: Mr. RAHALL and Mr. REICHERT. New York, Mr. RAHALL, Mr. KILDEE, Mr. resentatives of the State of Maine, relative H.R. 3764: Ms. WATERS. CONNOLLY of Virginia, and Ms. DEGETTE.

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H.R. 5138: Mr. KILDEE. H. Res. 416: Mr. MCDERMOTT. Mr. WEINER, Mr. THOMPSON of California, Mr. H.R. 5142: Mr. MCDERMOTT, Mr. MAFFEI, H. Res. 988: Mr. GRAVES. HALL of New York, Ms. ZOE LOFGREN of Cali- Ms. KILROY, Ms. KAPTUR, Mr. MARKEY of H. Res. 1016: Ms. LEE of California. fornia, Mr. LYNCH, Ms. DELAURO, Mr. CON- Massachusetts, Mr. INSLEE, and Mr. BISHOP H. Res. 1158: Mr. MORAN of Virginia and Ms. YERS, and Mr. HONDA. of New York. KILROY. H. Res. 1261: Ms. NORTON. H.J. Res. 14: Mr. COLE. H. Res. 1196: Mr. HASTINGS of Washington. H.J. Res. 81: Mr. CROWLEY, Mr. ENGEL, and H. Res. 1211: Ms. RICHARDSON. H. Res. 1273: Mr. CASSIDY, Mr. HALL of Mr. MAFFEI. H. Res. 1226: Mr. SIMPSON, Mr. BOOZMAN, Texas, Mr. JONES, Mr. BOEHNER, Mr. H. Con. Res. 49: Mr. BUTTERFIELD. Mrs. MALONEY, and Mr. ISSA. COFFMAN of Colorado, Mr. SENSENBRENNER, H. Con. Res. 262: Mr. LIPINSKI, Mr. MCGOV- H. Res. 1256: Mr. BARROW, Mr. LINDER, Mr. Mr. WHITFIELD, Mr. REHBERG, Mr. NUNES, Mr. ERN, Ms. KILPATRICK of Michigan, Ms. NOR- LEWIS of Georgia, and Mr. JOHNSON of Geor- MARCHANT, Mr. TURNER, Mr. RYAN of Wis- TON, Mr. TOWNS, Ms. MATSUI, Mr. MCNERNEY, gia. consin, and Mr. ROHRABACHER. H. Res. 1258: Mr. LUJ´AN, Mr. FRANK of Mas- Mr. THOMPSON of Mississippi, Mr. H. Res. 1283: Mr. CONYERS. BUTTERFIELD, Mr. HARE, Mr. SCOTT of Geor- sachusetts, Mr. LEVIN, Ms. ESHOO, Mr. GON- H. Res. 1294: Mr. BRIGHT. gia, and Mr. HASTINGS of Florida. ZALEZ, Mr. PIERLUISI, Mr. KILDEE, Ms. BALD- H. Con. Res. 266: Mr. AUSTRIA and Mr. WIN, Mr. BARROW, Mrs. CAPPS, Mr. ENGEL, H. Res. 1297: Ms. PINGREE of Maine, Mr. EHLERS. Mr. GENE GREEN of Texas, Mr. MELANCON, DINGELL, Ms. BALDWIN, Mr. LOEBSACK, Mr. H. Res. 20: Mrs. MYRICK. Mr. PALLONE, Ms. SCHAKOWSKY, Mr. STUPAK, SNYDER, and Mr. MOORE of Kansas.

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Vol. 156 WASHINGTON, WEDNESDAY, APRIL 28, 2010 No. 61 Senate The Senate met at 9:30 a.m. and was from the State of New Mexico, to perform kin’s lymphoma, he has endured, while called to order by the Honorable TOM the duties of the Chair. working as a full-time Senator. He has UDALL, a Senator from the State of ROBERT C. BYRD, not had it easy, but he has fought hard. New Mexico. President pro tempore. I consider it a privilege to work with Mr. UDALL of New Mexico thereupon ARLEN SPECTER. He is a strong contrib- PRAYER assumed the chair as Acting President utor to our caucus, a valuable Member The Chaplain, Dr. Barry C. Black, of- pro tempore. of this body and, most importantly, a fered the following prayer: f fine public servant for the people of Pennsylvania. Let us pray. RECOGNITION OF THE MAJORITY It would not surprise anyone to learn Eternal God, Heavenly Father, give LEADER our lawmakers strength and courage to that over 25 years Senator SPECTER and serve You with gladness and singleness The ACTING PRESIDENT pro tem- I have not always agreed on every of heart. May they delight in Your will pore. The majority leader is recog- issue. But I have never seen another and walk in Your ways. Protect them nized. Senator with a greater willingness to from that preoccupation with trivial f work in a bipartisan manner, put peo- ple over party, and to encourage others things which saps the ability of the SCHEDULE mind to deal with the things that real- to search their hearts and to do what is ly matter. Lord, prepare them for the Mr. REID. Mr. President, following right. role committed to their fallible hands leader remarks, there will be a period Senator SPECTER has fought to end in these challenging days, as You bring of morning business for 90 minutes, the partisanship in Washington as hard their desires and powers into con- with Senators permitted to speak for as he has fought for his constituents in formity to Your will. May their indi- up to 10 minutes each. The first 30 min- Pennsylvania. He has often reminded vidual lives be lighted windows amid utes will be under the control of the us, in key times, including right here the encircling gloom. We pray in Your Republicans, the majority will control on the Senate floor, that we had to go righteous Name. Amen. the next 30 minutes, and the remaining in a direction he thought was impor- time will be equally divided. tant. He would tell us about that, that f Following morning business, the Sen- we were sent here to govern, not to ate will resume consideration of the demagogue. PLEDGE OF ALLEGIANCE motion to proceed to the Wall Street He has warned his former colleagues The Honorable TOM UDALL, led the reform legislation, with the time until on the other side of the aisle not to let Pledge of Allegiance, as follows: 12:20 equally divided. At 12:20 p.m., the a strategy of obstructing obscure their I pledge allegiance to the Flag of the Senate will proceed to vote on the mo- responsibility to govern. That is a mes- United States of America, and to the Repub- tion to invoke cloture on the motion to sage with particular relevance with the lic for which it stands, one nation under God, proceed to Wall Street reform. That issue before us this week. Without Sen- indivisible, with liberty and justice for all. will be the third such vote we will have ator SPECTER’s courage to reach across taken in the last few days. f the aisle, we would not have passed the f economic recovery plan that is pulling our Nation out of recession and putting APPOINTMENT OF ACTING SENATOR ARLEN SPECTER PRESIDENT PRO TEMPORE people back to work. ARLEN SPECTER Mr. REID. Mr. President, I wish to did not vote for it for political reasons; The PRESIDING OFFICER. The say a few words about one of the Sen- he supported it because he saw what clerk will please read a communication ate’s most senior Members but one of the Great Depression did to his family. to the Senate from the President pro the newest on this side of the aisle. I It forced the Specters to move from tempore (Mr. BYRD). have known Senator ARLEN SPECTER their home in Wichita to his aunt’s The assistant legislative clerk read for many years. I have worked with home in Philadelphia. He did not want the following letter: him, learned from him, and admired to see it slip up again and fall into a U.S. SENATE, him. He is truly a legal scholar. depression. PRESIDENT PRO TEMPORE, Anyone who has read his books—and Senator SPECTER then came over to Washington, DC, April 28, 2010. To the Senate: I have—knows Senator SPECTER’s life our side of the aisle and helped us pass Under the provisions of rule I, paragraph 3, has been a struggle. From his days as the historic health care reform law of the Standing Rules of the Senate, I hereby the son of immigrants in Depression- that will help so many Americans af- appoint the Honorable TOM UDALL, a Senator era Kansas to the treatment for Hodg- ford to live healthier lives. When the

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

S2715

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VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2716 CONGRESSIONAL RECORD — SENATE April 28, 2010 anger of the townhall meetings con- that. This issue that is now before us is time to move forward on this legisla- sumed the country last summer, Sen- going to be one where we can amend, tion. ator SPECTER found himself on the offer amendments and have debate and What are my friends afraid of? This is frontline. He did not back up a step. He move forward. My friends on both sides the Senate. We are supposed to legis- did not give in to the myths and misin- of the aisle want to offer amendments. late. Negotiate? There comes a time formation and never lost his cool. As a They have told me that. That is what when we have to legislate. That time senior member and former chairman of we will do, but we cannot do that until has arrived. the Judiciary Committee, Senator we get on the bill. f I say to my friends on the other side SPECTER played a critical role in the RECOGNITION OF THE MINORITY of the aisle, again, let’s stop talking historic confirmation of Justice LEADER Sotomayor. I know he will do an equal- about this negotiation. It is going no- ly commendable job this summer when where. We started off months of nego- The ACTING PRESIDENT pro tem- we work to replace Justice Stevens. tiations with the chairman and rank- pore. The minority leader is recog- I wish to thank my friend for his ing member, Senator SHELBY, until nized. good counsel, his service to the good they broke it off, and then a Senator f people of Pennsylvania, and all he does, from Tennessee thought he would have FINANCIAL REGULATORY REFORM both publicly and privately, for the his try at it. He tried. That failed. We Mr. MCCONNELL. Mr. President, yes- Senate. went before the committee. There were terday, I came to the floor and noted The State of Pennsylvania, of course, a lot of amendments filed by the Re- that an increasing number of busi- is home to some of our Nations’s most publicans. They did not offer a single nesses large and small have been significant political history: the Dec- amendment before the committee. weighing in on the financial regulatory laration of Independence, the Constitu- That is why it was reported to the bill. And what we have seen from these tion was drafted in Senator SPECTER’s floor. groups is a growing concern about the hometown of Philadelphia. He has re- We need to move on. Republicans and adverse effect this bill could have on corded some history of his own. No Democrats have held months of bipar- their businesses. Everyone from candy Pennsylvanian has served that State in tisan meetings, negotiations, and con- bar companies to motorcycle makers, the Senate of the United States longer sensus. But the time has come to move it seems, is now worried about the im- than he has. this conversation from the sidelines to pact of this bill. His moderate voice has been an asset the playing field. It is time this debate So this has been a very useful exer- to our diverse caucus, and I look for- happened on the Senate floor where it cise: by giving people time to actually ward to working with him for many belongs. look at this bill and study the details years to come. They think all the negotiations, I for themselves, we have enabled them f guess, should happen behind closed to assess not only potential impact of doors. They want all the disagreements FINANCIAL REGULATORY REFORM the actual text of the bill itself but to end before the discussion begins. I also some of the unintended con- Mr. REID. Mr. President, I can re- was so disappointed in one of my sequences it could have. member as a boy we moved from friends. I heard her on the radio this As we know, this is something Amer- Searchlight, and my dad got a job in morning saying: Well, this is a com- icans were denied in the lead-up to the Henderson, where I was going to high plicated bill, and we have to get it vote on the stimulus bill. Democrats school, and we rented a home there. We worked out before we are going to let insisted we vote on that bill about 18 had a TV set, the first TV set. I can re- this bill go to the floor. Now that, I say hours after we got the text. And we member way back then my mother with all due respect, does not make have seen how that turned out. This is watching a program called ‘‘As The much sense. something Americans were denied World Turns.’’ It was a soap opera. I They want everything worked out be- again on the health spending bill, had never watched it on purpose but fore we get to the floor. Is that the new which was basically written by a few passing by, I guess. She watched that standard, they want all the disagree- guys in a room, then jammed through anytime she could, anytime she had a ments to end before the discussion be- the Senate during a blizzard on Christ- TV set. gins? I wonder what they think the mas Eve. And we have seen how that My wife as a young woman, a young purpose of debate is or why we have an turned out: a bill that was sold on the mother, to get away from the chores of amendment process. Negotiations are promise of lower costs and lower pre- taking care of those children of ours, not moving forward. It is ‘‘As The miums is now expected to lead to high- would watch ‘‘As The World Turns.’’ World Turns.’’ This soap opera never er costs and higher premiums. This soap opera went from my mother, ends. So this time people have actually had to my wife. That show is still going on, Well, this is going to end. We have to a chance to look at one of these mas- ‘‘As The World Turns.’’ This soap opera continue on this legislation. The Re- sive Democrat bills for a change, and is never going to end, I guess. I want publican leadership’s insistence we what is perfectly clear to most of them everyone in the Senate to know that work this out in the backrooms is a is that this bill needs some work, the negotiations we hear so much stalling tactic. Every day they stall it which is precisely what Republicans about are never going to end. a day, they say to Wall Street: Keep up have been saying for the last 2 weeks. We have to get on this bill. My the good work. Let’s just start with the basics. The friends on the other side of the aisle I have learned a little bit about this first thing we had to ensure with this should understand, we have negotiated debate as we have moved on. I have bill is that it did not leave taxpayers in good faith and we have tried and we learned, having been in the past chair- on the hook for any more Wall Street have to get to this bill. Negotiations man of the Nevada Gaming Commis- bailouts. And that is the first thing are similar to ‘‘As The World Turns.’’ sion, which is the gambling commis- some of us on this side of the aisle no- Similar to a soap opera, they are never sion, we tried to make those games fair ticed: the loopholes. So I raised the going to end, until we get on this bill. so people who came to gamble—and alarm on that issue, and the two par- I would say to my friends, let’s get on they gamble with their own money—if ties have been looking into it. this bill because we are going to con- they lost that money, they lost it fair But there are other problems. In par- tinue having rollcall votes on this mat- and square. But one thing they lost was ticular there is growing concern that ter as long as it takes. I am happy their own money. in an effort to hold Wall Street ac- when we get on the bill. I have told ev- The deal on Wall Street is an inter- countable, this bill could catch the lit- erybody, on numerous occasions, pub- esting gamble. They use our money, tle guys up in the same net as the big licly and privately, on 90 percent of and then they keep all the profits, and banks. And this is now a major concern issues brought to this floor we have if there are losses, they come to us for for a lot of people, a concern we need to had open debate. help. It has been more than 2 years address head on. We have had the most open debate in since the financial collapse and months For instance, whether the authors of many Congresses. I am happy about since these negotiations started. It is this bill intended it or not, there is real

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2717 concern that this bill could penalize So the supporters of this bill may who buy GE appliances like washers anyone in this country who buys or have locked up the support of the folks and dryers and water heaters that are sells something on an installment plan, at Goldman Sachs. But Republicans made in Louisville. as a result of some language in section aren’t about to rush this bill just to Homeowners and small business own- 1027. make Lloyd Blankfein happy, and not ers in Kentucky didn’t have anything As the New York Times put it this before there’s an ironclad protection to do with the financial crisis. I am morning, and here I am quoting the against any taxpayer funding of Wall sure none of the Kentuckians who work Times, ‘‘this bill gives broad powers to Street firms like his. Americans want at GE in Louisville had anything to do a consumer protection agency to regu- to knew that this bill will protect them with it either. But because this bill late almost any business that extends too. And right now, they have got more doesn’t distinguish between utilities credit, meaning that companies like questions than answers. that use derivatives for a legitimate car dealers and professionals like or- I already mentioned concerns about use and those who abused them, rate- thodontists who allow customers to section 1027. How about section 1022? It payers and others in my State will al- pay over time could be subject to a new relates to government collection of in- most certainly get hit by this bill. regulatory and supervisory regime.’’ formation through a new Bureau of These are some of the concerns peo- Does this mean that some graduate Consumer Protection. Here’s what that ple are raising about this bill. And the student in Louisville looking to buy an section of the bill says: ‘‘In conducting fact is, those concerns are only mag- engagement ring would now be re- research on the offering and provision nified by the recent performance of the quired to pay a higher interest rate, or of consumer financial products or serv- Democrat majority. I am afraid those that the jeweler wouldn’t do the deal ices.’’ It continues: ‘‘The Bureau shall who claim that this bill wouldn’t do because this bill would create new have the authority to gather informa- any of the things people are afraid of oversight over any nonfinancial insti- tion from time to time regarding the now have a higher hurdle to cross after tutions that lend money to consumers? organization, business conduct, mar- the assurances they gave the American What about the parent trying to spread kets, and activities of persons oper- people on the stimulus, the debt, and out payments for their child’s braces? ating in consumer financial services health care. A lot of people took Demo- Will they now have to pay for it all up- markets.’’ crats at their word in those debates, front? Will the orthodontist be willing It continues: and they got burned. Now they want to expose his or her practice to Federal more than a verbal assurance that this supervision because they allow pa- In order to gather such information, the Bureau may make public such information bill doesn’t allow bailouts. They want tients to pay the bill in more than four obtained by the Bureau under this section, proof. installments? as is in the public interest in reports or oth- I don’t think anybody really thinks I don’t know the answer to these erwise in the manner best suited for public questions. But I do like to have a good the Fertilizer Institute is responsible information and use. for the financial crisis. And I don’t answer if one of my constituents asks I have a question: Does having a me about it. Right now I don’t. No one think the authors of this bill think credit card make you a person oper- Kentucky farmers are to blame for the can deny that the language of the bill ating in consumer financial service is ambiguous, that it lends itself to collapse of Lehman Brothers. But markets? What if you sell something whether they intended to or not, this broad interpretation. So let’s tighten it on eBay and someone pays you with up. And why shouldn’t we? Why bill would punish them. And that is not their credit card through Paypal? Does right. shouldn’t we tighten up the language that make you someone operating in to make it crystal clear exactly what So Americans want a number of consumer financial service market? I things in this bill fixed. And they want this bill means and what it doesn’t am sure it is not the intent of the mean? more than verbal assurances. At this chairman to give the government the The last thing we want is for the lit- point, Americans want the supporters authority to collect personal financial tle guy to get hurt by a piece of legisla- of this bill to put a highlighter through tion that is intended to rein in bankers information on Kentuckians who use the relevant passages and then tab the on Wall Street. But that is precisely Paypal. But why not make it clear? pages. Americans expect us to prove we These are just some of the questions why we have gotten so many letters of are doing what we say we are doing. opposition to this bill over the last few people are asking once they have had a And after the past few debates, I don’t days from groups like the National chance to look at this bill. And I am blame them one bit. None of this Federation of Independent Business, just talking now about the unintended should be viewed as a burden. After all, the U.S. Chamber of Commerce, Ameri- consequences. Plenty of other groups isn’t that how the legislative process is cans for Tax Reform, and the National have pointed out some of the real, supposed to work: major legislation is Taxpayers Union. practical adverse consequences of this proposed, the American people get to That is also why we have gotten so bill on people who had absolutely noth- take a look at it, they let us know how many letters expressing serious con- ing to do with the financial crisis. it would affect them, and then we cerns from groups like the United For instance: I have heard from a weigh those concerns against the var- States Automobile Association, the number of utilities in Kentucky that ious problems at hand? The authors of Military Officers Association of Amer- use traditional derivatives as a way of this bill may believe some of these con- ica, the National Council of Farmer Co- keeping prices low for themselves and, cerns are misplaced. But they are going operatives, the Farm Credit Council, by extension, for homeowners and to have to prove it. the American Council of Life Insurers, small business owners across my state. I yield the floor. General Electric employs more than the Housing Policy Council, the Na- f tional Association of Home Builders, 5,000 people in Kentucky, so I want to the National Association of Manufac- hear what they have to say about this RESERVATION OF LEADER TIME turers, and the Fertilizer Institute. bill. And what they are telling me is The ACTING PRESIDENT pro tem- The list goes on. that this bill could really hurt them. pore. Under the previous order, the In fact, the only people who seem They have got a lot of concerns. They leadership time is reserved. willing to come out in support of this are concerned this bill will increase the f bill are the executives at Goldman cost of managing foreign exchange risk Sachs, the biggest bankers at the big- associated with their vast global sup- MORNING BUSINESS gest Wall Street firm of all. The CEO of ply chain. The ACTING PRESIDENT pro tem- Goldman Sachs was here on the Hill They are concerned about the poten- pore. Under the previous order, there yesterday discussing his firm’s role in tial cost increases related to the hedg- will be a period of morning business for the financial crisis, and the point he ing of commodities they use in the 90 minutes, with Senators permitted to made about this bill is that he agrees manufacturing process. And they are speak for up to 10 minutes each, and with the President, who said last week concerned about increased hedging with the time equally divided and con- that the biggest beneficiaries of this costs related to the financing they pro- trolled between the two leaders or bill are on Wall Street. vide to suppliers and retail customers their designees, with the Republicans

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2718 CONGRESSIONAL RECORD — SENATE April 28, 2010 controlling the first 30 minutes and the his remarks. Listening to him, I was recession or to make sure we don’t majority controlling the next 30 min- wondering how Kentuckians would re- have one, then we should not be in this utes. spond to the thought that—as we seem one. Anyone who has filled out a mort- The Senator from Pennsylvania is to be hearing now about this so-called gage application lately knows one has recognized. consumer protection bureau—‘‘We are to fill out a stack that high of con- Mr. SPECTER. Mr. President, I from Washington and we are here to sumer protection forms. thank the distinguished majority lead- protect you.’’ So just adding another layer of con- er for his generous and complimentary Mr. MCCONNELL. I would say to the sumer protection forms to buying a comments. As today completes 1 year Senator from Tennessee, now that we house or borrowing money or buying since my return to the Democratic are getting a chance to take a look at something on credit, what does that Party, I have a few observations on this bill, it is pretty clear that it has a have to do with Wall Street? What does what we should do as Senators, not as broad reach that would touch a whole that have to do with this great reces- Democrats or Republicans, to tend to lot of people in Tennessee and Ken- sion? the Nation’s business in these difficult tucky and has nothing to do with what We need to make it possible for com- days. happened on Wall Street. It is note- munity banks to make a loan to a Partisanship ran high in 2005, with worthy that the most conspicuous sup- small business who can then hire a per- Republican threats to invoke the nu- porter of this bill is the chairman of son, who can make an investment to clear or constitutional option, which Goldman Sachs. help get the economy moving again. would, in effect, change the rule to Mr. ALEXANDER. I wonder if the Most of us thought this Wall Street allow 51 votes to cut off filibusters. The Republican leader would agree with bill was about Wall Street, but it is so-called ‘‘Gang of 14,’’ a group of cen- me, if I may say through the Chair, turning out to be more about Main trists from both parties, structured a that it is noteworthy that the legisla- Street. The auto dealer and the com- compromise which confirmed some ju- tion we are talking about focuses on munity banker and the retailer and the dicial nominees, rejected others, and shop owners, auto dealers, real estate dentist say: Main Street is us. It is established a standard that filibusters agents, farmers, community bankers, about whether we can borrow money, should not be employed except in ‘‘ex- doctors, and dentists who had virtually get credit, expand the store, or create a ceptional circumstances.’’ That spirit nothing to do with this recession we job. ‘‘We are from Washington and we of compromise, I suggest, should be re- are in, but this legislation completely are here to protect you’’ sounds hollow visited today. leaves out the two giant Federal hous- to a lot of Americans, and it sounds In the threat of a great depression in ing agencies, Fannie Mae and Freddie like another Washington takeover to February 2009, I refused to join the Re- Mac, that had almost everything to do me. publican obstructionism and played a with the recession we are in. We have already made Washington key role in the passage of the Amer- Mr. MCCONNELL. Many, if not most the new American automotive capital. ican Recovery and Reinvestment Act. I experts, believed the crisis began We have already made Washington the am fully aware that my vote put my through Fannie and Freddie. As far as new American health care capital. We job on the line. I can tell, they are not addressed in have already made Washington the new Achieving civility and cooperation this measure at all. American student loan capital. Now we for the common good in 2010, as it oc- Mr. ALEXANDER. I thank the Re- are going to move Main Street to curred in 2005 with respect to judicial publican leader. Washington, DC, for every little credit nominations, will require independence Mr. President, ‘‘We are from Wash- transaction up and down Main Street? and risk-taking by Senators. Senators ington and we are here to protect you’’ We need to be careful about that. I must be willing to cross the aisle and is a promise or an offer that is creating don’t think Chicago and New York City work with their colleagues even at the a lot of suspicion around my State of want to move the great financial cen- peril of the disfavor of their own polit- Tennessee, and I suspect around the ters of this country to Washington. ical party. The problems of the country country. I am hearing from a lot of With some of the kind of restrictions today are too severe, too many Ameri- people who don’t like the sound of we are talking about passing, we may cans are out of work, too many Ameri- that—shop owners, auto dealers, real move those financial centers and those cans are fighting and dying in foreign estate agents, community bankers, re- jobs to Singapore, to Shanghai, to Lon- lands, for members of this body to be tailers, doctors, dentists, traders on don, or to other places. But moving unwilling to risk their seats for the eBay—they’re afraid the so-called con- Main Street to Washington, what is public good. The stakes for America re- sumer protection legislation we are this all about? Why is this even in the quire we all do our level best and per- hearing about will make it harder to bill? mit the public to judge us accordingly. borrow money. It will take more time If the bill is about reining in Wall At the moment, there is a pressing to borrow money. It will be more ex- Street, that is a good idea. But why are need for Republicans to join with us in pensive to borrow money. They will we going up and down Main Street reforming Wall Street to prevent the have to fill out more forms to borrow reining in Main Street when Main kind of financial crisis that cost this money. They will have fewer choices to Street is having a very hard time these country 8 million jobs. Both sides agree borrow money. days? that legislation is necessary. On a mo- If the shop owner, the auto dealer, The President is in Iowa today talk- tion to proceed, which is now pending the real estate agent, the community ing about Main Street. I hope he is ex- on this legislation, there is no realistic banker, the doctor or the dentist, and plaining why we have a piece of con- contention that ‘‘extraordinary cir- the traders on eBay can’t borrow sumer protection legislation that says cumstances’’ justify a filibuster. Once money, then they can’t invest, we can’t ‘‘We are from Washington and we are the bill is being debated, there will be create jobs, and we can’t put an end to here to protect you,’’ when most real- opportunity for amendments. Forty- this recession. tors, most auto dealers, most commu- one Republican Senators will then have We wouldn’t want to pass a piece of nity banks, most dentists, most traders the opportunity to filibuster whatever legislation, I would not think, that on eBay say: Wait a minute. We are not proposed legislation evolves before says ‘‘We are from Washington and we sure we need or want that kind of pro- final passage occurs. ‘‘Extraordinary are here to protect you,’’ and the effect tection, if what it means is to make it circumstances’’ now call for Repub- of it, to people up and down Main harder to borrow money, take more licans to join Democrats in passing leg- Street, is to make it harder to borrow time to borrow money, make it more islation to prevent another economic money, take more time to borrow expensive to borrow money, to fill out crisis. money, and make it more expensive to more forms to borrow money, or to f borrow money. have fewer choices to borrow money. If Someone said yesterday, I believe the it means all that, we might not be able FINANCIAL REFORM Senator from North Carolina—if the to create more jobs. Mr. ALEXANDER. Mr. President, I number of forms one has to fill out to Of course, what we are saying on the congratulate the Republican leader on buy a house is what it takes to stop a Republican side is, we want to exercise

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2719 the prerogative the Democrats offered erly. Does this legislation give big I believe this could be a tipping point when they were in the minority, which banks an advantage over community in the economic recovery. So why is to provide some checks and balances banks? Does it make big banks perma- would we play politics in the Senate on to the proposals made here. The major- nently too big to fail? The Republican this? Why would the other side keep of- ity leader, rather than encouraging leader said: Well, Goldman Sachs sup- fering ‘‘no’’ motions that cut off our that, is already the world recordholder ports the bill. Well, they may. But yes- right to debate, our right to offer in offering ‘‘no’’ motions. A ‘‘no’’ mo- terday, in my office, the dentists did amendments, our constitutional pre- tion says no to more amendments, no not, the auto dealer did not, the com- rogative to offer checks and balances to more debate, no to more checks and munity bankers did not, the people up on a runaway Washington government? balances. and down Main Street did not. So what We think most Americans want those So we will vote on that again today. are we to take from that difference of checks and balances. And should we We want more debate. We want more opinion? have them, and should we demonstrate amendments. We want more checks So we are here today to say, let’s a bipartisan bill here, we will not only and balances. We want to exercise the work together. Let’s take advantage of get a good bill, we will not only help prerogative we have to make sure the this great system of checks and bal- create good rules for the future, we can people up and down Main Street have a ances that our Founders wrote into the avoid putting handcuffs on Main right to see what is in the bill, and so Constitution that says in the Senate Street. We can send a signal to our we are well informed about the bill be- we come to consensus. Let’s look care- country there is certainty in the mar- fore we pass it. fully at this Bureau of Consumer Fi- ketplace. Go ahead and make your in- We are writing the rules for the econ- nancial Protection, which will have so vestment. Go ahead and create your omy of the United States of America. much independence, which will have a job. The world will respond favorably We produce 25 percent of all the money partisan appointment, which can to that, and we can get out of this in the world. What we do here affects choose what financial products can and great recession we are in. not just Nashville and Maryville and cannot be offered, and could regulate I am here to say today there are a lot Main Street American towns, but it af- hundreds of thousands of nonbank busi- of people suspicious about this phrase: fects the entire world economy. We nesses. Let’s look at a consumer bu- We are from Washington, and we are need to be careful. reau that could place new burdens on here to protect you. They think it is a I suppose our friends on the other Main Street businesses that had noth- better idea to say: We would like to see side think: Well, maybe it is politically ing to do with the economic crisis and some checks and balances applied to smart to offer all these ‘‘no’’ motions. have very little to do with the finan- the majority’s push for this new con- We would like to be known as the cial world. These mandates and time- sumer regulation legislation. And if we party—they may be thinking—that consuming requirements and these new do apply those checks and balances, wants to cut off, for a record number of forms to fill out are not the way to times, the opportunity to debate, the and come to a bipartisan agreement on help create new jobs and get the Amer- opportunity to offer amendments, the the bill, the country will be pleased ican economy moving again. with the work we are doing here, and opportunity to have checks and bal- What we are saying on the Repub- ances. I do not think it is so politically the economic recovery, hopefully, will lican side of the aisle is, we think we have a chance to move along a little wise. I think it is politically tone deaf. have a great opportunity. We think, as The people in my State do not want more rapidly. the President said in his campaign, we to see another big bill run through Mr. President, I thank the Chair and can come together, write rules that Congress as fast as a freight train with- yield the floor. help to fix the problems that helped out checks and balances. We saw that I suggest the absence of a quorum. create the great recession. We cannot with the health care bill. And do you The ACTING PRESIDENT pro tem- guarantee there will never be another know what we got? We got a health pore. The clerk will call the roll. care law that over the weekend the recession, but we can avoid some of the The legislative clerk proceeded to Obama administration’s Chief Actuary abuses. This all started out in a good call the roll. said does just what Republicans said it way with Senator DODD, the chairman Mr. CARDIN. Mr. President, I ask would do: it increases spending, in- of the committee, appointing Repub- unanimous consent that the order for creases premiums, and will have Medi- licans and then Democrats, dividing the quorum call be rescinded. care cuts. them into teams to work on bipartisan The ACTING PRESIDENT pro tem- Republicans said all that. We argued legislation, and suddenly, in the middle pore. Without objection, it is so or- strongly that it would be better—in- of the discussions, somebody said: Wait dered. stead of expanding a health care deliv- a minute, we won the election, we will Mr. CARDIN. Mr. President, I under- ery system that already is too expen- write the bill and pass it. We have the stand that although the Republicans sive—to, instead, focus our attention votes. We do not need the Republicans. still have time left under the division, on reducing the cost of health care so But should we not have learned with with their consent, it is permissible to more Americans could buy insurance. the health care law that it is not just proceed with the time for the majority. That was our effort at checks and bal- a matter of passing a bill, it is gaining The ACTING PRESIDENT pro tem- ances. I think we won the argument. confidence in the bill? Do we not want pore. Without objection, it is so or- But we lost the vote on the floor of the the country to look up at Washington dered. Senate by one vote. We would like to and say: ‘‘I am relieved to see Repub- f lican and Democratic Senators are win the argument here on financial RENEWABLE ENERGY SOLUTIONS regulation as well, to say: let’s rein in working together on these great issues, Wall Street, but why are we making it and 70 or 80 of them voted yes. We have Mr. CARDIN. Mr. President, I take harder to borrow money on Main written the rules for the future for the this time to emphasize the need of our Street, for heaven’s sake? financial system of the United States, Nation to move forward with a com- We should be making it easier to cre- which is in some trouble, and it is not prehensive energy policy. I know the ate jobs and to make investments on going to be changed whether we have a Presiding Officer shares that commit- Main Street. Why are we reining in Republican Congress or a Democratic ment and is working very hard on the Main Street and ignoring the two great Congress after November. This is some- Environment and Public Works Com- housing agencies that were at the root thing you can rely on’’? mittee to produce legislation that will cause of this great recession we are in? Then small businesspeople up and solve the three major issues we have in Main Street was not the cause of the down Main Street, big businesspeople this Nation with regard to energy. No. recession. So we are reining in Main on Wall Street, the commodities mar- 1 is to create jobs. We need to create Street lending and we are ignoring ket in Chicago—they can say: We see good, clean energy jobs here in Amer- Fannie Mae and Freddie Mac—the two some certainty because of this sta- ica and not lose them to overseas com- great housing agencies. bility in Washington, and we are ready petitors. We understand that. We also We have some questions that we to make investment decisions. We are understand we need an energy policy want to make sure are answered prop- ready to create new jobs. that boosts our national security. We

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2720 CONGRESSIONAL RECORD — SENATE April 28, 2010 don’t want to continue to support the Let me tell my colleagues something. An article in the New York Times efforts of countries that disagree with Deepwater Horizon is considered to be today says we might have to have a our way of life. We have to become en- the most technologically advanced off- controlled burn of the oil floating on ergy secure here in America. Also, we shore oil rig in the world, and $600 mil- the surface of the water because cap- need such a policy for the sake of our lion was spent in constructing this rig ping the well is such a challenge. First, environment. We know greenhouse gas so it would be safe. My point is, it ex- we are told we have technology to deal emissions and carbon emissions are ploded, capsized, and sank, and it cost with this type of incident; now, we are polluting our air. people their lives and it has created an being told we are going to have burn We know we can answer all three of environmental disaster. the oil instead. these issues—creating jobs, enhancing This oil rig is located 50 miles south- The first thing to do when we have an national security, and protecting the east of Venice, LA. There was 700,000 event such as this one is that we try to environment—by using alternative and gallons of No. 2 fuel onboard that ei- plug the hole so it doesn’t spew more renewable energy sources, by using less ther burned or was spilled into the oil into the gulf. Guess what. We are energy, and by moving forward with gulf. It is currently leaking about 1,000 told that because of the depth of this nuclear energy. We need to do all of barrels a day into the Gulf of Mexico. well—5,000 feet—it could take up to that. The oilspill is spreading. several months to plug the leak by With regard to obtaining sufficient If I could just show my colleagues drilling what are know as relief wells. and secure energy supplies, we cannot this image. This is hard to see, but this So what can we do? Oil is pouring out. drill our way out of this problem. I say is a picture taken from space, taking a They said: Well, we are going to try to that because America has somewhere look at this region of the United States funnel the oil for collection under- around 3 percent of the global oil re- of America. We start to see the coast- water, before it reaches the surface. serves. We use about 25 percent. We line of Louisiana and Mississippi, and This procedure has never been done be- can’t drill our way out of that dis- we can also see where the spill is lo- fore at this depth. They are trying to equilibrium. Secondly, we have to use cated. The spill is right here. So in a design and fabricate the equipment less carbon-emitting fuel sources for picture taken from space, one can actu- right now to deal with that approach. the sake of our environment. ally see the spill area. The spill has Will it work? I don’t know. But these President Obama recently announced spread 1,800 miles, an area larger than are the risks inherent in offshore drill- the opening of eight frontier Outer the State of Rhode Island. ing. It underscores my concern and op- Continental Shelf (OCS) areas in the This is another, close-up view of the position to the offshore drilling plan as United States for oil and gas explo- spill area. What this is showing is the proposed by the President. ration and development. I oppose that oil we saw on the surface of the water. So let me talk about why this is not policy. I wish to explain to my col- This is all oil that is currently in the just a hypothetical to the people of leagues why I oppose that policy. Gulf of Mexico, and it is spreading. Maryland but this is a real problem. Interior Secretary Salazar said we The next image shows the color- There is a site known as lease sale 220. need to protect our most environ- coded trajectory of the spill over the Lease sale 220 is located off the shore of mentally sensitive areas from drilling. past several days. What we saw in the Virginia. It is a 2.9 million-acre site. I agree. The President’s plan protects previous image includes just this area. The site where they want to drill is the the west coast and the North Atlantic. It doesn’t include the green area; it green triangle we see on this chart. I can tell my colleagues, just talk to doesn’t include this light-orange area. The purple shows the current flows of people in this part of the country, and That is where the spill was projected to the Gulf Stream, and here you see the they will tell you that the Chesapeake go yesterday. So you can see how rap- coasts of New Jersey, Delaware, Mary- Bay and our coastlines here in the mid- idly the spill is spreading. land, Virginia, North Carolina, and Atlantic region are just as precious and Let me tell my colleagues, the good South Carolina. This chart is instruc- just as vulnerable as the west coast of news of this—to the extent there is tive because we see how the currents the United States or the North Atlan- good news—is that the winds have been go. tic. blowing from the north and northwest. Let me also tell my colleagues that I oppose the President’s policy be- If they hadn’t been blowing from that the National Atmospheric and Oceanic cause there are other OCS areas which direction, it is very likely this oilspill Administration (NOAA) tells us that 72 are currently available. Sixty-eight would be much closer to the Louisiana percent of the time, the prevailing million acres that have not yet been coastline. winds in this region blow toward or explored are already available in this There are many areas that are vul- along the coast—72 percent of the time. country for oil and gas exploration. nerable as a result of this spill, many If there is a catastrophe, if there is an Many of those areas are along the coastal areas in Louisiana, Mississippi, oilspill related to this site, the likeli- Outer Continental Shelf, so there is no Alabama, and Florida. The spill is ap- hood of oil washing up on the shores of need at this time to expand that net- proaching the Delta and Breton Na- New Jersey, Delaware, Maryland, Vir- work. I must tell my colleagues, the tional Wildlife Refuges and the ginia, and the Outer Banks is quite risk-reward ratio is what I am mostly Chandeleur Barrier Islands. It threat- high. concerned about—the risk of doing en- ens our coasts, bird-nesting habitats, Here is the mouth of the Chesapeake vironmental damage versus the little oyster production areas, wildlife, wet- Bay, 50 miles away from this site. As oil that may be recovered in these lands, and the list goes on and on and the Presiding Officer knows, we are areas. It just doesn’t pay. on. struggling to deal with the clean-up of I have heard the advocates of off- I know the Presiding Officer knows the Chesapeake Bay. It is hard enough shore drilling say: Well, modern tech- the importance of bird-nesting habitats just dealing with the known pollutants nology has substantially reduced the for the protection of species. He under- that come in from farming and from risk. We now know how to deal with stands that oyster spawning and pro- development and from storm runoff. this issue and avoid any type of cata- duction areas can be destroyed for gen- Put into that a potential oilspill and it strophic environmental risk. erations as a result of pollution; that would set us back decades in trying to Let me share this photo with my col- when we lose wildlife, we can lose it restart our oyster crops and help our leagues. What we are looking at is the permanently, and when we lose wet- watermen with the blue crabs and to Deepwater Horizon offshore drilling rig lands, we lose the filtration system help the rock fish return and thrive. It in the Gulf of Mexico. This photograph that protects us from pollutants com- is too great of a risk. was taken shortly after an accident ing into estuaries and we lose the As Secretary Salazar said, there are that occurred just 8 days ago. There ‘‘speed bumps’’ that can slow and ab- certain parts of this country that are was a tragic explosion and fire and in sorb storms and hurricanes, causing so environmentally sensitive, they are which 11 people lost their lives, which more havoc when they hit our coasts. not worth the risk—the west coast of is the greatest tragedy—the loss of This is all happening as a result of a the United States, the North Atlantic, life—but it also created an environ- fire and a spill from the most techno- parts of Alaska. And I tell my col- mental disaster. logically advanced rig in the world. leagues that the coast around the

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2721 Chesapeake Bay falls into that cat- But that is where the logic goes into Stop the daily cloture votes. I under- egory. We should not permit that type the ditch. Once this bill does get to the stand the political theater of that, but of drilling. floor of the Senate, we all recognize it it doesn’t lend itself to solving prob- We can do something about this. We is going to be very difficult to change lems. What we need is a bipartisan ef- are going to have a chance. I am a it. Look at the health care bill to see fort, where people sit down and work strong proponent of what Senator how difficult it was to make changes. through these differences of opinion. KERRY is attempting to do in bringing Let me make that comparison because With that, I yield the floor and sug- forward a bill that will solve all three I think it is a fair comparison. gest the absence of a quorum. of our problems: creating jobs, enhanc- During the health care debate, let me The ACTING PRESIDENT pro tem- ing our national security, and respon- remind my colleagues, there were 488 pore. The clerk will call the roll. sibly dealing with pollutants in our en- amendments that were filed. Of those The legislative clerk proceeded to vironment while being an international 488 amendments, only 28 received a call the roll. leader in the effort to reduce carbon vote—28 out of 488. Of those 28 amend- Mr. LEVIN. Mr. President, I ask emissions. We can achieve all of those ments, only 11 amendments passed. unanimous consent that the order for objectives without this drilling. This being said, only 2 percent of all the quorum call be rescinded. The ACTING PRESIDENT pro tem- We will have a chance to say some- the health care amendments filed actu- pore. Without objection, it is so or- thing about it. I urge my colleagues to ally got passed. dered. take a look at what happened in the If we look at the partisan nature of Mr. LEVIN. Mr. President, yesterday, Gulf of Mexico last week, what con- this bill, it even becomes more blatant. the Senate Permanent Subcommittee tinues to happen there, and work with If we look at the Republican amend- on Investigations, which I chair, held those of us who want to make sure we ments, we come to the conclusion that the fourth in our series of hearings to have a sensible and sustainable energy there was a serious problem. Only one explore some of the causes and con- policy in this country and help me and Republican amendment passed. So the sequences of the financial crisis. These help our Nation protect the Chesa- death knell of the amendment de- hearings are the culmination of nearly peake Bay and protect those lands that pended upon whether it had an ‘‘R’’ or a year and a half of investigation. are just too valuable and too sensitive a ‘‘D’’ behind the name. The freezing of financial markets and to risk oil drilling. The notion that we will be able to fix the collapse of financial institutions With that, Mr. President, I yield the a bill—and again, everybody is ac- that sparked our investigation are not floor and suggest the absence of a knowledging it is a flawed bill—on the just a matter of numbers on a balance quorum. Senate floor is pure folly. History is sheet. These are numbers reflecting The ACTING PRESIDENT pro tem- our greatest teacher. Instead, I respect- millions of Americans who lost their pore. The clerk will call the roll. fully suggest that what we need to do jobs, their homes, and their businesses The legislative clerk proceeded to is get serious about reaching a bipar- in a recession that the housing crisis call the roll. tisan compromise. sparked, the worst economic decline Mr. UDALL of New Mexico. Mr. I have said publicly, and I will say on since the Great Depression. Behind President, I ask unanimous consent the Senate floor every opportunity I these numbers are American families that the order for the quorum call be get, that with a sufficient amount of who are still suffering the effects of a rescinded. work, this bill can get 70 or 80 votes. manmade economic catastrophe. The PRESIDING OFFICER (Mr. We have worked on this issue on the Our goal has been to construct a CARDIN). Without objection, it is so or- Banking Committee for months and record of the facts in order to try to dered. months, trying to understand what deepen public understanding of what The Senator from New Mexico is rec- went wrong and how best to fix it. The went wrong, to inform a legislative de- ognized. American people want Members of the bate about the need for financial re- (The remarks of Mr. UDALL of New Senate to work together on the bill. form, and to provide a foundation for Mexico pertaining to the introduction They wonder what on Earth has come building better defenses to protect of S. 3217 are located in today’s RECORD of Congress when they see us holding Main Street from Wall Street. under ‘‘Statements on Introduced Bills the exact same cloture vote on the Our first hearing, 3 or 4 weeks ago, and Joint Resolutions.’’) exact same legislation day after day. dealt with the impact of high-risk The PRESIDING OFFICER. The Sen- They ask a simple question: Why mortgage lending. It focused on a case ator from Nebraska is recognized. can’t you just sit down and work study, as our committee does, of Wash- f through these differences of opinion? ington Mutual Bank, known as WaMu, I am mindful of the fact that this is a thrift whose leaders embarked on a FINANCIAL REGULATORY REFORM probably clever messaging—a clever reckless strategy to pursue higher prof- Mr. JOHANNS. Mr. President, I rise messaging ploy by Washington’s stand- its by emphasizing high-risk loans. for a few minutes to talk about S. 3217, ards. But by Nebraskan standards, we WaMu didn’t just make loans that were the financial regulatory reform bill. I are tired of Washington cleverness and likely to fail; these loans also created focus, if I could, my comments today the partisan rhetoric that goes with it. real hardships for the borrowers, as on why the cloture vote on financial I can tell you that people want a bill well as risk for the bank itself. What reform is such an important key vote. that will end too big to fail and protect happened was there was basically a My colleagues from the other side our economy from financial meltdown. conveyor belt that fed those toxic have talked about this vote, and it is What they don’t want is a bill written loans into the financial system like a often referred to as a procedural vote so broadly that it impacts businesses polluter dumping poison pollution into to begin debate. Almost in the same in segments of our economy that play a river. That poison came packaged in sentence, I think both sides of the aisle no part in the economic collapse. I mortgage-backed securities that WaMu recognize that notwithstanding the want these same things. sold to get the enormous risk of these good work that has been done by Chair- I still believe we can accomplish this. mortgages off its own books and shift- man DODD and Ranking Member SHEL- My hope is that we can quit making ed to somebody else’s. BY, there is still much to be done on this an issue of political gamesmanship Our second hearing examined how this bill, and there are still some sig- and talking points and start working Federal regulators at the Office of nificant flaws within the bill. toward a solution. Thrift Supervision watched and ob- The argument goes on to say: Don’t I have consistently stated that the served WaMu—saw the problems year worry, these problems can be worked issue of regulatory reform isn’t a par- after year—and did nothing to stop out on the Senate floor. We will have a tisan exercise. The issue just doesn’t them. Regulation by the Office of robust debate, and we will have floor cut on ‘‘R’’ or ‘‘D’’ lines. We can get a Thrift Supervision that should have amendments. So get the bill to the broad, bipartisan bill if we stop the at- been conducted at arm’s length was in- floor—the argument goes—and the tacks and focus on trying to solve the stead done arm-in-arm with WaMu. promises made to fix it will then hap- differences that still exist on this bill— The third hearing dealt with credit pen. important policy differences. rating agencies. These are specific case

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2722 CONGRESSIONAL RECORD — SENATE April 28, 2010 studies of Standard & Poor’s and rities. We see the problems and Ameri- I yield myself 5 additional minutes. Moody’s, the Nation’s two largest cred- cans see the problems. We cannot un- The ACTING PRESIDENT pro tem- it raters. And while WaMu and other derstand, and Americans cannot under- pore. Without objection, it is so or- lenders—and WaMu wasn’t alone by a stand, how a company can design and dered. long shot—dumped these bad loans, build a product and sell that product to Mr. LEVIN. Now, throughout these regulators failed to stop the behavior. its clients while at the same time they hearings we see a lack of account- Credit rating agencies were assuring are betting that product will fail. It ability. Executives of Washington Mu- everybody that the poisoned water was runs contrary to common sense—a tual make the reckless mortgage safe to drink. Triple A ratings were kind of common ethics. loans—not held accountable. Execu- slapped on bottles of high-risk finan- If you are going to sell somebody a tives at Goldman Sachs and their com- cial products. So that was the third pair of shoes, and you know or believe pany packaged many of these same hearing. We have to do something that pair of shoes is defective and you loans that were toxic securities and about the inherent conflict of interest bet against that pair of shoes so that then took a conflict-of-interest posi- that is involved when the credit rating your profit is not just the profit you tion on it—no accountability. Regu- agencies are paid by the people whose would make on the immediate sale of lators, credit rating agencies that were actual documents and whose trans- that pair of shoes, but when the pair of supposed to check these excesses—no actions they are rating, putting labels shoes fails there is, in some way, a accountability. In each case, the senior of triple A, double A, what have you, profit that comes to you as well. When leaders managed to avoid responsi- on them. There is a built-in conflict of you are betting on the failure of the bility for their contribution to a crisis interest. product and will make money from which has caused millions of Ameri- Yesterday’s hearing explored the role that bet when that product fails, most cans to lose their jobs or their homes of investment banks in the develop- Americans, and I think most members or their businesses. ment of this crisis, and we focused on of the committee—hopefully, maybe all Others may fail to take responsi- the period of 2007, when that housing of us—would say to ourselves: That bility for their actions, but we must bubble burst, of Goldman Sachs, one of kind of conflict of interest has got to exercise our accountability. We must the oldest firms on Wall Street. Gold- be stopped. act. I do not understand our Repub- That is not what the Wall Street man’s documents made it very clear lican colleagues, knowing what they folks were telling us yesterday is that it was betting against the housing know about the crisis, knowing there is ‘‘making a market,’’ where you have no real regulator on the beat on Wall market while it was aggressively sell- someone who comes in and wants to ing investments in the housing market sell something and somebody who Street, can vote against beginning a to its own clients. It was selling the wants to buy something and they are debate. We don’t have a cop on the beat clients high-risk, mortgage-backed se- put together. That is ‘‘making a mar- on Wall Street. We need a regulator curities and what they call CDOs, and ket’’—bringing a buyer and a seller to- there. We need credit rating agencies synthetic CDOs, that it wanted to get gether. not involved in conflicts of interest off its books. They wanted to get secu- This is where the firm—the entity which are inherent to the way they are rities off the books. They were reach- that is going to be benefitting is on one now being paid. We need a banking reg- ing out with one hand to prospective side of the deal—and that entity was ulator which acts; one that doesn’t just buyers and saying: Here. But with the Goldman Sachs. They actually, in some observe and watch things going off other hand they were betting against of these deals, were taking securities track but acts, and has a responsibility those same securities. from their own inventory that they to act as well. The bottom line is that what we have wanted to get rid of, packaging them The Dodd bill takes very significant discovered in this investigation, and into a financial instrument and selling steps relative to each of these areas. heard yesterday at our hearing, is that that instrument to their customers. So Whether it is the banking area, the there is a conflict of interest too often far, so good, providing they disclose it regulator area, the credit rating area, between what was in Goldman’s inter- is their own product they are selling. there are some critical steps that are est—what was good for their bottom That is okay. But then they take what taken in the Dodd bill. There are some line—and what was in their clients’ they call a short position. They take a people who say they do not like por- best interest. bet. They make a bet against the very tions of the Dodd bill. Okay, bring the These are deeply troubling findings. instrument they put together to sell to bill to the floor and let’s debate it. There not only was a collapse of a their customers. Let’s legislate. housing market, there was a collapse of That, to me, is incredible. They also The legislative process is supposed to values. Extreme greed is the thread are engaged—and a lot of people are en- involve, sooner or later, a bill which that connects these events, starting gaged—in what we call these credit de- comes to the floor and then is open to with those mortgages that were sold fault swaps, which are nothing more amendment and then debate. There are out there in the State of Washington than casino bets as to whether some- a lot of areas in this bill that can be by Washington Mutual Bank; extreme thing will happen; where, for instance, strengthened. There are some areas in greed that indeed involved the people people are betting that a particular the bill that some people don’t like and who were supposed to be doing the stock will go up or down. Neither party wish to strike. We have been on this credit rating, being paid and doing a owns the stock, if it is a so-called syn- bill now in committees of jurisdiction lousy job of rating the financial instru- thetic default swap. I bet that stock for months. There have been hearings ments that pension funds and others will go up, you bet it will go down. in those committees. I think we know they were buying, and the greed, of That is okay; if people want to bet on what the issues are. course, that was involved in Wall that, let them bet. But when the gov- There is no agreement on the resolu- Street selling securitizing financial in- ernment ends up paying the winning tion of this. There is no unanimous struments which they believed were bettor, now you have a problem. Where consent, obviously, as to exactly what not good and that they were betting the company that is making those reform should be put in place and how against at the same time they were bets, or insuring those bets, as it was that should be written. But we can’t al- selling them to their clients and cus- called in the case of AIG—supposed to ways operate in the middle of a crisis tomers. be insuring those bets—is too big to by unanimous consent. At some point, What we have to do is build defenses fail—they have insured so many bets where there are differences, we have to against these kinds of excesses. I think for so many companies and so many bring those difference to the floor and most of us at the hearing—Democratic pension funds that if that private com- debate them and offer amendments on and Republican Senators on the Per- pany fails, the economy is going to be them and vote them up or down. That manent Subcommittee on Investiga- terribly damaged as a result and we is our responsibility. It is not respon- tions—saw the problems right from the end up, as taxpayers, paying off those sible—it is irresponsible—to block that beginning, upstream where the mort- bets—that has got to be stopped as process from taking place. gages were created and downstream well. These are casino bets and we I think almost all of us say that we where they landed in Wall Street secu- shouldn’t be paying them. want reforms. But there are enough of

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2723 us who say we are not going to allow Mr. DURBIN. Mr. President, I ask the bill promoted by the Senate Banking this to be debated unless we get our unanimous consent that following the Committee Chairman Chris Dodd will elimi- way that this has been stymied. The Senator from the Louisiana I be recog- nate it. reform process has been thwarted by a nized for 15 minutes in morning busi- Simon Johnson, distinguished MIT filibuster here. It is wrong. And the ness. professor, put it succinctly: remedies that are offered and can be The ACTING PRESIDENT pro tem- Too big to fail is opposed by the right and debated and can be amended are essen- pore. Without objection, it is so or- the left, though not, apparently, by the peo- tial to avoid a repeat of this disaster. dered. ple drafting legislation. These are complex issues. We all know Mr. VITTER. Mr. President, I rise to These are specific ways the Dodd bill that. But there has been a huge strongly agree with Chairman LEVIN actually expands too big to fail, spe- amount of debate, attention, and anal- that what we have heard in many of cific authorities, specific sections that ysis on these issues. There are going to these hearings regarding Goldman clearly do that. A lot of the attention be differences on these issues, but the Sachs’ activity and others is extremely has been paid recently to the $50 billion place to resolve differences finally is disturbing—outrageous—and I don’t prepaid fund, and that is problematic here on the floor. support that activity in any way, in my mind. But that is not the only, Often we can resolve them before we shape, or form. I think I have a lot of not even the most problematic section get to the floor. Fine. But to stop a leg- credibility saying that, because back in of the bill that expands too big to fail. islative process from taking place, it the fall of 2008, I didn’t support huge All these sections go directly to that seems to me, is an irresponsible act taxpayer bailouts to Goldman Sachs issue. My second main objection to the bill when we are in the middle of a crisis and the other megafirms. I opposed is, the bill also creates an all-powerful and where the people of the United those taxpayer bailouts. I thought it superbureaucracy that goes well be- States want confidence that their leg- was wrong and counterproductive and yond the need for targeted regulation islators are addressing this crisis. So I moving us in the wrong direction. to prevent what has happened in the would hope our Republican colleagues But I have to disagree with the dis- last 5 years. Again, these are specific will allow this bill to come to the floor tinguished chairman that the present sections that create this huge, new, all- and to offer amendments. version of the Dodd bill fixes these key powerful superbureaucracy. One of the There are many amendments that issues. I don’t think it does. So I en- most worrisome is section 1081. That are going to be offered. Senator courage us to have a true bipartisan subjects anybody, any business that ac- MERKLEY and I have an amendment bill that can come to the floor to ad- cepts four installment payments to the which we believe will strengthen the dress the problems that exist. bill, to give one example. That amend- CFPB, the new superbureaucracy. I have three major sets of concerns That is not just Goldman Sachs. That ment has not yet been ‘‘worked out’’ about the Dodd bill in its present form. with the sponsors of the bill. Hopefully, is not just Citigroup, Bank of America. The first is very fundamental. It goes That is my family’s orthodontist. That we can get them to agree to language exactly to what I was talking about, which will allow for a stronger step to is my neighborhood store that sells having opposed all the bailouts. The electronic equipment. That is a huge be taken in an area which we think in- Dodd bill expands too big to fail. It volves a serious conflict of interest. coverage affecting millions of small doesn’t end it. The Dodd bill ensures businesses throughout America. But if we can’t ‘‘work it out in ad- future bailouts; it does not stop bail- vance,’’ okay. There is such a thing Imagine, anybody who accepts four outs. That is a big problem to me and called an amendment. It is part of our installment payments—is that the I believe to American taxpayers. problem actor we are going after? This rule book. You can offer amendments if It is not just me saying this. It is you want to. You can’t always work is a huge overreach, in terms of Fed- many educated folks. Take Time maga- out things in a back room somewhere. eral regulation, and this is a funda- zine, not exactly an arch-conservative I don’t want to denigrate working out mental problem with the bill. publication. They have reported: problems. I try to do it all the time, as Finally, the third major problem chairman of the Armed Services Com- Policy experts and economists from both with the bill is, the present version of ends of the political spectrum say the bill the Dodd bill does nothing to fix cer- mittee. I don’t denigrate that process does little to end the problem of banks be- of working things out in advance. Lord tain key causes of the crisis. What do I coming so big that the Government is forced mean by that? It does nothing on knows, we work out most things in ad- to bail them out when they stumble. Some vance. But with a threat of this size, say the proposed financial reform may even Fannie Mae and Freddie Mac; a 1,100- which requires us to act, and where make the problem worse. page bill, supposedly comprehensive fi- there has been a good-faith effort to Also, Jeffrey Lacker—he is the Presi- nancial regulatory reform. Yet the four come to some kind of agreement in ad- dent of the Richmond Federal Reserve words ‘‘Fannie Mae, Freddie Mac’’ are vance that proves not to be possible, Board—agrees with that. In a CNBC nowhere in those 1,100 pages. This was for heaven’s sake we have to legislate. interview, CNBC asked him: ‘‘Doesn’t not the only cause of the crisis, but We have to have an ability to move to the Dodd bill allow for winding down this clearly, admittedly, was a key the floor with a bill and to go through failed institutions?’’ And Lacker said: cause of the crisis—disastrous policy the legislative process with it. That is ‘‘It allows those things but it does not and administration at Fannie Mae and what has been thwarted. That is what require them.’’ Freddie Mac. As Lawrence White, dis- has been denied us because we don’t Let me repeat that because that goes tinguished economics professor, has have 60 votes. to the heart of the problem: said: I hope our Republican colleagues will The silence on Fannie and Freddie is deaf- It allows those things but it does not re- ening. How can they look at themselves in see the importance of this issue, the es- quire them. Moreover, it provides tremen- the mirror every morning thinking that they sential need for reform, and allow this dous discretion for the Treasury and FDIC to have a regulatory reform bill and they are bill to come to the floor and be legis- use that fund to buy assets from the failed totally silent on Fannie and Freddie? It just lated upon. firm, to guarantee liabilities of the failed boggles my mind. I yield the floor. firm, to buy liabilities of the failed firm. The ACTING PRESIDENT pro tem- They can support creditors in the failed firm. It boggles my mind as well. pore. The Senator from Louisiana is They have a tremendous amount of discre- Also, there is nothing on lending recognized. tion. standards. Clearly, one of the funda- Mr. DURBIN. Would the Senator Again, they have the ability for more mental problems that caused the finan- from Louisiana yield for a question, bailouts, for continued pumping of tax- cial crisis is institutions which lent very briefly? payer dollars into failed firms. money, subprime loans, with no mean- Mr. VITTER. Yes, I will. William Isaac is a respected former ingful standards. What are the new Mr. DURBIN. If I could ask the Sen- Chairman of the FDIC. He agrees. standards we are enacting, putting into ator how long he expects to hold the Nearly all of our political leaders agree this bill? Absolutely nothing—silence floor. that we must banish the ‘‘too big to fail’’ on lending standards, underwriting Mr. VITTER. I would expect to hold doctrine in banking, but neither the finan- standards. Clearly, that was a huge the floor for 14 minutes, at the least. cial reform bill approved in the House nor part of the last crisis.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2724 CONGRESSIONAL RECORD — SENATE April 28, 2010 Where is the change? These are the be the third time this week we have huge sums of money that the invest- top firms that got bailout funds, in- given the Republicans an opportunity ment they were selling to their cus- cluding Goldman Sachs. I voted against to join us in a bipartisan effort to bring tomers was going to fail. These men all these bailouts. But these are the real reform to Wall Street and the big sat before that committee and said firms that got them. banks on Wall Street. that is business. That is how we do These are the billions of taxpayer Twice now we have failed to get a business. dollars that they received. This is their single Republican who will stand and That is the sort of thing that has to old regulator, the Federal Reserve, and vote with us for Wall Street reform. I come to an end in this country. There this is the brave new world this Dodd don’t understand it. Certainly, they is a man by the name of Paul bill will be introducing—exactly, pre- understand what we have been through Krugman, who writes for the New York cisely the same regulator. Where is the as a nation with this recession. They Times. He wrote an article about what change? realize that some $16 trillion of value happened at Goldman Sachs, which led We need meaningful financial reform, has been yanked out of our economy, to their investigation as well as but we need it targeted on the problem. yanked out of savings accounts and charges that have been lodged against We need it to include all the causes of 401(k)s and out of business ledgers. them. I would like to read from this ar- the problem. They know what has happened when ticle, from April 19 of this year, where These are key principles that would businesses have failed and millions of Mr. Krugman says: mean permanently ending bailouts and Americans are out of work and they re- We’ve known for some time that Goldman too big to fail. I fought against the alize the root cause of this was on Wall Sachs and other firms marketed mortgage- bailouts a few years ago. We cannot Street, with some of their dealings backed securities even as they sought to continue that policy. We need to end it. that, frankly, were outrageous, and make profits by betting that such securities Ending all bailout authorities for the now we are trying to change them. Yet would plunge in value. This practice, how- Federal Reserve and FDIC. It is not ever, while arguably reprehensible, wasn’t il- we have failed to come up with one Re- legal. But now the S.E.C. is charging that good enough to say we have a new reso- publican Senator who will vote to Goldman created and marketed securities lution mechanism. If those bailout au- begin the debate on Wall Street re- that were deliberately designed to fail, so thorities continue as they do in the form—not one. that an important client could make money Dodd bill, they will be used again. A colleague of mine analyzed what off that failure. Enhanced consumer protection with- Wall Street is doing to lobby against Krugman writes, ‘‘That’s what I out overreach, without creating this this bill. He took the amount of money would call looting.’’ new all-powerful superbureaucracy. that Wall Street banks and financial He goes on to say, this legislation we Greater transparency for derivatives, institutions are paying their lobbyists are considering contains consumer fi- while allowing businesses to properly, on Capitol Hill and divided it and came nancial protection, the strongest law legitimately manage risk. up with a number. They are spending in the history of the United States. Begin addressing Fannie Mae and $120,000 a day to stop Wall Street re- Here is what Krugman writes: Freddie Mac. Again, the current Dodd form—$120,000 a day, 2 to 21⁄2 times the For one thing, an independent consumer bill does not include four words, average income of an American, the protection bureau could have helped limit ‘‘Fannie Mae, Freddie Mac.’’ Wall Street banks are spending each predatory lending. Another provision in the Establish minimum lending stand- day to stop this bill. proposed Senate bill,— ards for mortgages. We had subprimes So far they have been successful. Which is before us, being filibustered with no underwriting standards, no They have convinced every Republican by the Republicans— lending standards. This present Dodd Senator to vote against beginning the requiring that lenders retain 5 percent of the bill does not change that. We must debate on this bill. They have con- value of loans they make, would have lim- change that. vinced every Republican Senator to ited the practice of making bad loans and Increase competition for credit rat- vote to continue the filibuster because quickly selling them off to unwary investors. ing agencies. They were clearly part of the Wall Street lobbyists know that if He goes on to write: the last crisis. this bill doesn’t come to the floor, they The main moral you should draw from the Improve coordination and commu- are not going to have to change their charges against Goldman, though, doesn’t in- nication among all financial Federal ways. They can keep doing what they volve the fine print of reform; it involves the regulators. have done for so long and they do not urgent need to change Wall Street. These are the principles of strong have to face any new laws, any new Listening to financial industrial lob- regulatory reform. I hope these are the oversight, any new regulation. byists and the Republican politicians principles around which we can come Of course, the American people know who have been huddling with them, together in a bipartisan way. I cer- what has happened too. They saw the you would think that everything will tainly support that effort by RICHARD hearings yesterday. Senator CARL be fine as long as the Federal Govern- SHELBY and Chairman DODD. I encour- LEVIN of Michigan, who was just on the ment promises not to do any more bail- age that effort. But those negotiations floor, presided over the Permanent outs. But that is totally wrong, not will not be meaningful unless we de- Subcommittee of Investigations of the just because no such promise would be mand on the Senate floor that they be Committee on Homeland Security. credible, but the fact is that much of meaningful and demand that a bill CARL LEVIN told me he had worked for the financial industry has become a moving to the Senate floor is true re- 16 months in preparation for that hear- racket, a game in which a handful of form and a bipartisan approach. I urge ing, trying to understand the com- people are lavishly paid to mislead and that approach. I enthusiastically sup- plexity of Wall Street and how it exploit consumers and investors. If we port that approach. works. He brought in the highest ex- do not lower the boom on those prac- I yield the floor. ecutives from Goldman Sachs and tices, the racket will just go on. The PRESIDING OFFICER (Mr. asked them point blank to explain Every day that the Republican fili- BURRIS). The Senator from Illinois is what they had been doing. We saw it on buster of Wall Street reform continues recognized. television, last night and this morning. is another day that we will fail to take Mr. DURBIN. Mr. President, in about When the men who were called before into consideration this bill, this Finan- 1 hour, the Senate will convene for a him, who have literally made millions cial Stability Act, which is pending be- vote. It is one of the few times this of dollars out of this investment fore the Senate. Each day that the Re- week that the Senate comes together. scheme, were asked to explain it— publican filibuster continues is a vic- Those who are following our pro- something as basic as this—how could tory for the Wall Street lobbyists. That ceedings will see Senators from all they sell a product to a consumer at is just wrong. Have we learned nothing over the United States gather on the Goldman Sachs without disclosing that from the recession we are in? Have we floor of the Senate. That gathering will Goldman Sachs was betting that con- learned nothing from the hearing yes- be for a crucial vote as to whether the sumer would lose money, that is what terday where these men, these multi- Republican filibuster on Wall Street happened. They were so-called shorting millionaires who pay themselves lav- reform will continue or end. This will the market, meaning they were betting ishly sat and said they thought it was

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2725 perfectly acceptable to sell a product the other after the other, until after 20 closure and honest dealings with con- to one of their customers that they or 30 minutes it is all over, they hand sumers; clear English language wheth- were betting would fail with their own you the keys, and you head on out to er you are taking out a credit card, money? They think that is just fine. It see your new house. Well, most people buying a car, buying a home, a student is part of the casino they run on Wall do not know what is in those papers. loan, or a retirement benefit for the Street. Even if a lawyer is sitting at the table rest of your life. Shouldn’t the lan- Well, JOHN ENSIGN of Nevada took ex- with them, it is unlikely that they guage be clear? We have to make that ception to that and said: That gives have parsed every single word. As a re- clear as part of this. Las Vegas casinos a bad name because sult, a lot of people end up signing up At some point, I hope the Repub- we deal with things honestly, and peo- for things they did not understand. We licans who are filibustering this Wall ple know the odds are against them. It want to change that. I do not think it Street reform will decide, if they have is not like the situation on Wall Street is too much to ask that these financial a good cause and they want to bring it where people are misled into believing obligations and instruments be in plain to the floor, that they can open the de- they are making a good bet when the English so the average person knows bate, provide their side of the story, house is betting against them. And what they are getting into. and urge the Members of the Senate to that is what happened at Goldman What we want to do in this bill is to go along with them. If a majority Sachs. That is the sort of thing that empower consumers so that you can agrees, it will be in the bill. If not, it will come to an end. make the right choice for yourself, will be outside the bill. What this bill does is it holds Wall your family, your business, and your If that sounds vaguely familiar, like Street accountable. We are fighting to future. We do not want you to fall vic- the Senate you read about when you hold them accountable for the reckless tim to the tricks and traps of the lat- were going to school, it is. It is what gambling that led to our recession and est little turn of a phrase that can turn we are supposed to be doing. This is not the loss of 8 million jobs in America— your world upside down. That is why supposed to be an empty Chamber of 8 million. There are 8 million families the consumer financial protection law desks here waiting as we launch day to affected by these activities on Wall is included in this bill. It is the strong- day another filibuster vote. Ninety- Street, and the Republican filibuster est consumer financial protection law nine Senators are supposed to be out would stop us from even considering in the history of the United States. here with me in heated debate over the changes to the regulation and over- There are lobbyists lined up outside biggest financial issue of our genera- sight of Wall Street activities. this Chamber trying to carve out ex- tion. Instead, the Republicans continue We want to end taxpayer bailouts for ceptions. They are trying to argue: to filibuster, stop the debate, refuse to good. I listened to the criticism of this Wait a minute, we do not want this to go to amendments, refuse to take their bill. I try to draw an analogy which I apply to pawn brokers; let’s give them special pleadings on what they want to heard Senator MENENDEZ of New Jersey a pass. We do not want this to apply to achieve in this bill to the court of pub- use. What we try to do in this bill is to casinos; let’s give them a pass. We do lic opinion. That is not fair, and it is create, for lack of a better term, under not want this to apply to automobile not right. Senator MENENDEZ’s analysis, a pre- companies, auto agencies; let’s give It is also interesting, when we were paid burial plan. What it basically them a pass. They want to have loop- in the middle of the health care debate, means is that if your company—finan- holes and carve-outs for the favorite how many times those on the other cial institution—is going to go out of industries they represent. side of the aisle stood up and said: Do business, we want to make sure we I was at the airport coming out here you know what the problem is here? have put enough money in the bank to this week, and one of these folks, a The Democrats are trying to write this pay for funeral expenses—literally the good, local businessman in the suburbs bill behind closed doors. They will not winding down and liquidation of the of Chicago, came up and said: I am an bring it out to the floor of the Senate. company—because we don’t want the honest businessman. I did not cause Now fast forward to the current de- American taxpayer to do it. So this bill the recession. I have never had a prob- bate. What are the Republicans saying? creates a so-called prepaid corporate lem in my life. People do not complain You know what the problem is here— funeral fund and says, let the banks about me. The Better Business Bureau the Democrats refuse to change this themselves fund it so the taxpayers do gives me the highest of marks. Why bill behind closed doors. They want to not have to. I think that is reasonable. should I be regulated? Why should the amend it right here on the Senate The Republican approach, though, is government look at what I am doing? floor. to say: Well, let’s just bet there is And I said to him: If you are doing It seems to me they are in an incon- enough money left in the estate to pay everything you said, you should not sistent position. for the funeral. Maybe there will be worry about it. What you ought to If they believe these amendments are and maybe there will not be. In that worry about is your competitor down good amendments, they should not be case, the taxpayers are on the hook the street who is fleecing people and afraid to offer them in front of the again. That is not a good outcome. So giving folks in your industry a bad American people. But if they want to trying to create some assurance that name. cook a deal behind closed doors, I do there is money to liquidate and wind These carve-outs and these changes— have some problems with that. If they down these financial institutions pro- and they have been arguing for them have a good cause, they should bring it tects taxpayers from another bailout. all morning on the Republican side of to the floor and deal with it. Shady in- The Republicans object to that, but the aisle—are the reason they are hold- stitutions are not good for this country they have not come up with a better ing up the bill. They have promised the and sunlight is good, transparency is solution. lobbyists that they will cut out loop- good. I believe it is time we stand up The third thing we want to do is to holes in this bill for the special inter- for the American people and say that put commerce and consumers in con- est groups that are represented by reckless gambling on Wall Street with trol in America. I do not have to re- them. They would exempt the auto- the future of the American economy is mind most people, if you open a bank mobile dealers, some of them would ex- absolutely unacceptable. account, if you enter into a mortgage, empt the home loan industry, and some Some of them argue: Well, let’s go if you decide to sign up for a credit of them would exempt pawn brokers. after the biggest financial institutions. card, go off to buy an automobile, sign The exemptions could be as long as Let’s not blame the little people who up for a student loan, sign up for a re- your arm, exemptions as long as the are involved in the credit business. tirement plan, they usually send you list of lobbyists who are trying to push There was an article in the New York some legal documents along the way. these loopholes. Times on Sunday, April 18, by Jim At a real estate closing—I have been I don’t think that is a good outcome. Dwyer. He was talking about credit to many as a consumer and a lawyer— I don’t believe we should be creating card companies turning $2.50 slices of they give you a stack of papers and you lobbyist loopholes in this law. Let’s pizza into a $37.50 slice. They did it, of sit there at the bank, with your spouse hold everyone to the same legal stand- course, when they bought a slice of nearby, signing these papers, one after ard, a good-faith standard of real dis- pizza with a debit card that was over

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2726 CONGRESSIONAL RECORD — SENATE April 28, 2010 the limit and the penalty was $35. The RESTORING AMERICAN FINANCIAL changes, that is what the amendment question on that fee was, Were the peo- STABILITY ACT OF 2010—MOTION process is for. We are not cutting off ple notified ahead of time what they TO PROCEED anyone. It will be open for amendment. were going to face? I don’t think it is The PRESIDING OFFICER. Under Why are the Republicans so afraid of unfair to notify people what they have the previous order, the Senate will re- offering amendments on the Senate to pay. I believe this kind of disclosure sume consideration of the motion to floor if they have a better idea on how is important to confidence in our econ- proceed to S. 3217, which the clerk will we should do this? omy. report. It is a bitter irony that, even as we I am urging my colleagues to stand spent a fortune in taxpayer dollars to and join us in making sure we have a The assistant legislative clerk read as follows: rescue the global financial system, the chance to bring this bill to the floor. In self-appointed masters of the universe Motion to proceed to the consideration of less than 1 hour, this empty floor will on Wall Street rewarded themselves be filled with Senators, Democrats and S. 3217, a bill to promote the financial sta- bility of the United States by improving ac- with billions in bonuses and have Republicans. We need 60 Senators to countability and transparency in the finan- geared up to fight the efforts to pre- step up and say: This recession has cial system, to end ‘‘too big to fail,’’ to pro- vent—to prevent—this from happening taught us a lesson. We are not going to tect the American taxpayer by ending bail- again. let America go through this again be- outs, to protect consumers from abusive fi- Well, it seems Wall Street is all too cause of the greed and malpractice of nancial services practices, and for other pur- used to living a different life, playing those in Wall Street and financial in- poses. by different rules than the rest of the stitutions. We are going to change the The PRESIDING OFFICER. Under country. Nowhere is this disconnect be- system. We are going to require them the previous order, the time until 12:20 tween Wall Street and Main Street to be more transparent, more account- p.m. will be equally divided and con- more stark than in the area of com- able, to put their own money on the trolled between the two leaders or pensation. Over the last decades, com- table, and to be honest with their cus- their designees. pensation in the financial sector has tomers. We are going to require finan- The Senator from Iowa is recognized. skyrocketed, with some executives cial institutions to make full disclo- Mr. HARKIN. Mr. President, yester- walking away with annual compensa- sure to the people they deal with so day, in the Permanent Subcommittee tion of hundreds of millions of dollars, that those customers can be empow- on Investigations, chaired by the dis- ered to make the right decisions for even as the inflation-adjusted incomes tinguished Senator from Michigan, Mr. of ordinary working Americans have themselves and their families. We are LEVIN, we learned more about the reck- not going to exclude certain businesses remained stagnant. less actions of traders and executives This chart I have in the Chamber in America and say they can do what- at Goldman Sachs. Goldman Sachs was ever they like when what is at stake is traces the financial industry profits as hardly the only bad actor in bringing a share of domestic profits since 1948. the financial security of a family. our financial system to the brink of Everybody is going to be held to the From 1948 to about 1980, as you can collapse in 2008. Traders and executives same basic standard of honesty, a see, it remained fairly stable, between standard which good businesses live up at many other financial institutions 8 percent and 18 percent. Think about to every single day. I urge the good got fabulously wealthy by gaming the everything in this country, all the businesses across America not to stand unregulated casinos on Wall Street. profits made. About 8 percent to 18 per- in defense of the bottom feeders. I urge They walked away with fortunes, even cent was taken by the financial sector them to stand up for good business as millions of Americans lost their on Wall Street. But starting in 1984, fi- practices which are part of the free jobs, their savings, and their homes. nancial profits began to rise dramati- market system and have made our Na- Yet as we witnessed in yesterday’s cally. We can see it on the chart, going tion so strong as the entrepreneurial hearing, Wall Street remains quite ar- way up. spirit has blossomed into more jobs and rogant and quite unrepentant and quite In 2001, financial industry profits economic growth. That spirit needs to unwilling to change its ways. It has the were almost 45 percent of all domestic be regained, the confidence needs be re- gall to believe it should remain free to profits in America—almost half; 45 per- gained. do business as usual. To that end, I am cent—up from about 8 percent to 18 The embarrassing chapter yesterday told it has mobilized a legion of lobby- percent. Today, despite the 2008 melt- in the Committee on Homeland Secu- ists—an estimated 1,500 of them; 15 lob- down, they are back above 35 percent. rity, when these Wall Street titans byists for every Senator—to try to kill So 35 percent of all the profits made in came in and said they saw nothing or water down, stop this financial regu- America are going to Wall Street, wrong with misleading their customers lation reform from coming to the floor. going to the financial sector. This is a into millions of dollars of losses, has to It is deeply unfortunate that every concentration of wealth unprecedented come to an end. It will only end when one of our colleagues on the other side in our history. the Republican filibuster ends on the of the aisle—every single Republican— This second chart I have in the floor of the Senate. has joined with Wall Street in ob- Chamber contrasts this explosion of I will hope at 12:20 when this vote be- structing this legislation—every single wealth on Wall Street to what hap- gins that at least a handful of Repub- Republican not just filibustering the pened to ordinary Americans on Main licans will stand up and say: Enough is bill but preventing it from even coming Street. From 1990 to 2008, real median enough. Let’s move forward with re- to the floor for debate and amendment. household income stagnated at about form. Let’s move forward to putting They keep saying they want to im- $50,000 per year. It just stagnated. the American economy back on track. prove the bill. Well, is that not what Since 2000, real median household in- I yield the floor and suggest the ab- the debate and amendment process is come has actually fallen. sence of a quorum. about? If someone has a better idea, From 2000 to today, real median The PRESIDING OFFICER. The offer it as an amendment. Let’s debate household income has stagnated and clerk will call the roll. it. Maybe it is a better idea. Maybe we The assistant legislative clerk pro- has actually fallen from where it was. will adopt it; maybe we will not. But it ceeded to call the roll. We had a steady increase over the Mr. HARKIN. Mr. President, I ask seems that is the way we ought to be years. Then, since 1990, it stagnated. unanimous consent that the order for conducting the Nation’s business on Since 2000, it has fallen. That is what is the quorum call be rescinded. the Senate floor. happening to the average household in The PRESIDING OFFICER. Without So I say to my Republican col- America, the median household in objection, it is so ordered. leagues, Senator DODD and Senator America. LINCOLN have bent over backwards to f Well, let’s see what was happening to consult with them and invite bipar- our friends on Wall Street then. CONCLUSION OF MORNING tisan cooperation. Their good-faith ef- Just as median household income BUSINESS forts have produced solid, common- was stagnating from about 1990 on, The PRESIDING OFFICER. Morning sense legislation. But if people on the look what happened to the average business is closed. other side of the aisle want some Wall Street bonus—huge. Wall Street

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2727 compensation skyrocketed nearly 300 accept; that every so often we are The PRESIDING OFFICER. The Sen- percent during this period of time. going to have a flood or have a hurri- ator’s time has expired. Since 1990, the average Wall Street cane hit the coast or we are going to Mr. HARKIN. Mr. President, since I bonus—I am not even talking about have a drought someplace. Financial see no one else on the floor, I ask unan- salaries; I am just talking about bo- collapses that happened in the past imous consent for another 7 minutes. nuses—soared from just under $50,000 in were not preordained kinds of hap- The PRESIDING OFFICER. Without the early 1990s to more than $200,000 in penings to our system. They happen be- objection, it is so ordered. 2006. cause we let people run amok with Mr. HARKIN. Thank you. Now, go out and talk to our constitu- large sums of money and gamble it. As I said, I have no objection to basic ents, go out and talk to the Main So, again, to protect ourselves derivatives. It is when these deriva- Street businesspeople who run our against floods, what do we do? Well, we tives get out of hand; it is when you shops, and talk to anybody out in do a lot of upland treatment. We build have a derivative on a derivative on a America today. Did their income in- dams. We build levees. We do all kinds derivative and on and on and on. That crease 300 percent during that period of of things to protect ourselves from is what is happening in the derivatives time? No; it stayed level. But look at these things. Well, there are some markets. the bonuses—and that is just the bo- things we can do to protect ourselves So, despite the usefulness of deriva- nuses. I am not even talking about from a financial collapse too. It is put- tives in certain cases, it got out of their salaries. These are bonuses. ting into place the kinds of oversight hand. The bill we reported out of the Well, I dwell on this and point this and transparency and regulations that Agriculture Committee will bring all of out because I think it points to a larg- allow our capitalist system to operate, these transactions into the light of er issue. In my view, a big reason for but to operate within some bounds. I day. No more behind the scenes; deriva- the financial collapse of 2008 is that don’t think anyone wants to return to tives would be reported to regulators in things got out of balance and they got the boom and bust cycle of unbridled real time. It would bring the vast ma- out of whack. As Glass-Steagall was re- capitalism that we had in the 19th cen- jority of these into clearinghouses and pealed—and I might say this forth- tury and the early part of the 20th cen- exchanges. It would help to reduce the rightly—there were eight Senators on tury. I don’t think anybody wants to concentration of risk and bolster pub- this floor who voted against the repeal go back to those days. Yes, we believe lic transparency. The legislation we of Glass-Steagall. I am proud to say I in a capitalist system where people can are trying to bring to the floor that the was one of them. I remember at that take their savings and invest it, make Republicans keep blocking gets to the time saying: Wait a minute, there is a their money work for them, loan it out heart of the too-big-to-fail problem by reason in the 1930s, under President to other people so they can start busi- prohibiting swaps entities from also Roosevelt, we did not want to have this nesses. That is the capitalist model. being commercial banks. A commercial happening again. But should we let people take our bank backed by the government or the So we said to commercial banks: If money we have saved up for pensions, FDIC should not be able to use that you want to be a bank and take bank for example, or other kinds of invest- government backing to support high- deposits, fine; you can be a bank. But ments, and go to Las Vegas? I don’t stakes gambling. That only magnifies you cannot do insurance and you can- think so. We want some rules and regu- the level of risk in the banking system. not do investments. You cannot do lations so they can make true invest- It is unfair to taxpayers, bank cus- swaps and derivatives and all that kind ments, so those investments can be tomers, and community banks. of stuff. You are a commercial bank, used to start businesses, to invest in I met in my office yesterday with and for that we give you FDIC protec- economic growth on a broad basis, but some of the community banks in Iowa. tion. We also give you Federal Reserve not to be used for gross speculation on They don’t deal in swaps and deriva- protection. Wall Street. tives. They take deposits, they loan We said to insurance companies: If That is why we need this financial re- them out for business starts, people you want to be insurance companies, form bill we are trying to get to the who need a loan for different things. fine; but you cannot be a bank. We said floor. It will guard against future mas- They are not dealing in swaps and de- to investment houses: If you want to sive meltdowns that always cost us, rivatives, so why should we allow these take money in to invest, fine; that is not only money, but also in ruined big banks on Wall Street to do it? your deal. But you cannot take depos- lives. We also need a strong, independent its. You are not a depository bank, and Strong financial reform must include financial consumer protection agency you do not get the protections of the regulations of the derivatives market. to guard against rip-offs and abuses in FDIC and the Federal Reserve. This is something I have been involved mortgages, credit cards, payday loans, Well, in 1999, this Congress repealed in for a long time on the Agriculture and other financial profits to protect that, and allowed them all to come to- Committee, for all the years I have consumers. It is sorely needed. gether. I said at the time—and the served, working with the Commodities We also need to slam the door on too- record will show I said it—I hope it Futures Trading Commission. I am big-to-fail financial institutions. No does not happen. I hope all these smart pleased to say the legislation we are more AIGs or Citigroups. When compa- people know what they are doing, but I trying to bring to the floor includes nies make bets and lose, there ought to do not trust them. I do not trust them the provisions that passed out of the be a process for liquidating those com- because we are going to start having a Agriculture Committee under the lead- panies, period. lot of funny games playing. In the last ership of our chairman, Senator LIN- To further improve the bill, I have 10 years, we saw the games they COLN. Derivatives contracts have been cosponsored legislation introduced by played. at the heart of Wall Street’s financial Senator CANTWELL that would recreate Well, after Glass-Steagall was re- manipulation. From December of 2000 the Great Depression-era regulation pealed, the special interests attacked to June of 2008, the height of the Wall that prohibited the mixing of commer- the very idea of government regula- Street boom, the notional value of cial banks, investment banks, and in- tion. The SEC and other watchdog over-the-counter derivatives grew from surance companies. We ought to return agencies failed to regulate and Wall $95 billion in 2000 to $683 trillion in to the Glass-Steagall law that worked Street stepped into the void. And they 2008. well for so many years. Senator CANT- just drove our economy off a cliff, and I wish to make it clear. People say, WELL has been a strong leader for this, ordinary, hard-working Americans had Are you against all derivatives? I say, and I thank her. to pick up the tab. That is why we need No. There are basic derivatives that I am also a cosponsor of the SAFE this serious financial reform. can be helpful for our economy and for Banking Act offered by Senators As others have noted—and I say individuals, from businesses to farm- BROWN and KAUFMAN that would limit again—financial crises in this country ers. Farmers use derivatives. Busi- the size of the largest institutions. No should not be looked upon as floods nesses use them to protect against cur- more too big to fail. that just come every 10 years or some rency fluctuations. That is fine. These In addition, I support legislation by kind of natural disaster that we sort of are basic derivatives. Senators MERKLEY and LEVIN that

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2728 CONGRESSIONAL RECORD — SENATE April 28, 2010 blocks institutions that are insured by I hope the American people under- most people, I am somewhat mystified. the FDIC from proprietary trading stand this. I hope they understand that I have heard my colleagues over the with their own funds. We can’t have the Republican side of the aisle will last day or so raise issues, concerns high-risk gambling with money that is not let this bill even come to the floor they have with the bill. It is no great backed by the taxpayers of this coun- for debate. shock that would be the case. That is try. The PRESIDING OFFICER. The Sen- normally what happens with a bill of Mr. President, America has been ator has used his 7 minutes. this size and obviously this complexity, through financial collapses and deep Mr. HARKIN. I ask unanimous con- covering as much of an area as we do economic downturns before. In chart- sent for 1 more minute. across the economic spectrum of our ing the way forward, we can learn im- The PRESIDING OFFICER. Without country. I am somewhat mystified. I portant lessons from the financial objection, it is so ordered. understand having objections to parts crash of 1929 that led to the Great De- Mr. HARKIN. I thank the Senator of the bill and wanting to be heard and pression. FDR answered that crisis by from Connecticut for all the hard work wanting to have an opportunity to implementing tough new regulations to he has put into this, he and his staff change the bill, either add to it or sub- stabilize the financial system, rein in and the committee. It is a good bill. tract from it; that is how we normally risk taking and recklessness on Wall Again, we may not agree on every de- engage in the legislative process, but I Street, and made the economy work for tail. There are some things I would like can’t very well help on that front if I ordinary Americans. Because of those to see in it; maybe they will, maybe am not allowed to get to the bill. reforms made in the 1930s, we had dec- they won’t. It is a good bill, a solid bill, This morning, the major newspapers ades of shared economic prosperity un- and it will help us get control back of the country of course reported about precedented in our Nation’s history. again over Wall Street and all the wild the hearings yesterday here in Wash- Well, what we did in the 1930s needs to speculations and it will help our coun- ington. I don’t need to say much more be our model. Not exactly the same— try grow as it should, not in one small about it. Again, the headlines: Looking we have a different system—but it area, but broadly-based economic into mortgage deals and the like have needs to be our model as we shape to- growth in our country. reached a certain crescendo. Most peo- day’s financial reform legislation. Fi- I thank Senator DODD for his great ple are probably aware of those things. nancial reform legislation ought to leadership on this. I hope my Repub- There was another headline, however, separate these big entities out. We lican friends will understand that we that wasn’t at the top of the newspaper can’t have too big to fail. We need to have to get this bill up on the floor so but underneath it. In this case, the have transparency. We need to stop we can protect the American people local paper here in Washington had the banks from engaging in swaps and de- from these financial collapses that headline ‘‘Greek debt downgraded to rivatives if they are backed by the have happened over the last couple of junk.’’ It says, ‘‘European crisis FDIC. years. These amendments—the Cantwell deepens. Dow falls 2 percent on global Mr. President, I yield the floor. amendment, the Merkley-Levin amend- sell-off.’’ The PRESIDING OFFICER. The Sen- The reason I mention that here is ment, the Brown-Kaufman amendment, ator from Connecticut. that obviously the Goldman Sachs and others I happen to be supporting— Mr. DODD. Mr. President, it is my story was the one that got the atten- again, we can’t offer them unless we understanding that the time of the tion, but there are problems emerging get the bill to the floor. I don’t know if Democratic side has expired, is that around the world that affect us as well. they will win, but we ought to have the correct? right to offer those amendments. Our legislation doesn’t write inter- The PRESIDING OFFICER. That is I wish to thank Senator DODD. He has national rules, but the United States been at the forefront of this fight for a correct. has led, historically, in financial serv- long time, trying to bring this bill to Mr. DODD. I don’t have a Republican ices. If we are unable to get a bill the floor, to crack down on abusive colleague to ask unanimous consent to passed to change the rules, give us a speculation, to put in strong regula- speak for a couple of minutes. I ask greater sense of fairness and trans- tion, to have a consumer protection unanimous consent to be allowed to parency and protection, then we are agency to protect our consumers. Sen- speak for 5 minutes. missing an opportunity to correct what The PRESIDING OFFICER. Without ator DODD has led this effort. I know over the last number of years helped where his heart is. I know how he is objection, it is so ordered. create some of the problems we are trying to make certain this system Mr. DODD. I thank the Chair. now facing and then to lead globally so works for everybody, not just Wall Let me first thank my friend from that other nations will harmonize their Street. I don’t want to be on a roll of Iowa for his tremendous work on so rules with ours so that the problems bashing Wall Street all the time. I many issues but also his deep interest that exist in a Shanghai or a Greece know that is a popular sport. Wall in this subject matter. Obviously, the can’t affect us here. Street has a role to play in our society. subject of exotic instruments—deriva- We have a lot of work to do. I expect They surely do. tives and the like—is a critical issue that if we get on this bill, we are going But, let’s get Wall Street back to for all of the country but particularly to be working for weeks engaging in what Wall Street does best: accumu- in the farm State of Iowa where he has several amendments and ideas to try to lating capital and investing that cap- played a considerable role. All of us strengthen this bill—make it better, if ital in the economic growth of Amer- have a higher degree of interest in one you will. ica. That is what the Dodd bill does. It subject matter or the other, but I am I am one of the authors of the bill. I gets us back to that system. It grateful to him for his longstanding in- don’t claim this is a perfect piece of straightens things out and helps to terest. His is not an interest that legislation. I have never seen one of protect us from these kinds of collapses emerged with the problems that spiked those in my 30 years here. Normally, in the future. 18 months ago, but go back 8 years. In you bring out a bill and do the best you I do not understand why the Repub- fact, he has written legislation and can. Obviously, others have different licans will not let this bill come to the held hearings in his former capacity as points of view. It would be presump- floor. I don’t mind if they want to vote chairman of the Agriculture Com- tuous of Senator SHELBY and me to against it. If they want to be on the mittee, so he knows the subject well. I suggest that we can come to some side of keeping Wall Street speculating appreciate his kind comments about great agreement here and tell every- with taxpayers’ dollars and letting the effort of the Banking Committee body else that, whether you like it or these banks get too big to fail, that is and the effort of BLANCHE LINCOLN, our not, this is the deal. That is not what their right, but why not let the bill colleague from Arkansas, and the Agri- we get elected to do here. come to the floor so we can debate it culture Committee she now chairs and I have colleagues on my side who are and amend it. If they want to change where she has been working on a very sympathetic to what I have tried to do, it, let them offer amendments, but we important piece of our efforts here. but they want to change this bill. can’t do that unless we bring the bill to There are only a few minutes left be- There is one amendment by my col- the floor. fore this vote will occur again. As are league from Vermont, and I think it

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2729 has 33 cosponsors, two-thirds of whom The question is, Is it the sense of the They stand with the big banks. They do are on that side of the aisle and a third Senate that debate on the motion to not stand with the infrastructure of ev- are over on this side. They ought to proceed to S. 3217, the Restoring Amer- eryday people who make this country have the right to offer an amendment ican Financial Stability Act of 2010, the great place we have become. They to change this bill, which is what they shall be brought to a close? do not stand for opportunities such as want to do. The yeas and nays are mandatory the ones that allowed Americans to I am fully prepared as a manager of under the rule. come together after World War II to this product to allow that amendment The clerk will call the roll. get an education, get jobs, become the process to go forward, engage in that The legislative clerk called the roll. greatest generation that built our Na- debate. But I cannot get there if you Mr. DURBIN. I announce that the tion into the greatest on Earth. won’t even allow me to bring up the Senator from West Virginia (Mr. Instead, our friends across the aisle bill. So the incongruity of complaining BYRD), is necessarily absent. stand with Wall Street lobbyists who about the product and simultaneously Mr. KYL. The following Senator is demand that we do not take up this saying: I am not going to let you vote necessarily absent: the Senator from bill. What an outrage. They stand for on it, I don’t know how you explain Utah (Mr. BENNETT). maintaining a banking system that de- that to people in this country. The PRESIDING OFFICER (Mrs. nies people and businesses the funds At the end of the day, if you want to HAGAN). Are there any other Senators they need and sells people mortgages vote against the bill, do so. If you want in the Chamber desiring to vote? they cannot afford, while lining execu- to vote for or against amendments, do The yeas and nays resulted—yeas 56, tives’ pockets with billions in com- it. I am not suggesting that anything I nays 42, as follows: pensation. The picture is quite clear. It am offering at this juncture would pre- is very obvious as to what has taken clude you from that conclusion, but [Rollcall Vote No. 127 Leg.] place here. After hearing the demands you cannot get to that conclusion un- YEAS—56 of the Wall Street lobbyists, the other less we have the product in front of us. Akaka Franken Mikulski All we have had is a series of speech- Baucus Gillibrand Murray side of the aisle systematically es over 3 days, denying us the nec- Bayh Hagan Nelson (FL) marches down here and votes no in Begich Harkin Pryor lockstep, not once, not twice but three essary votes in order to move effec- Bennet Inouye Reed times. There is no one bold enough to tively. In effect, a filibuster is ongoing Bingaman Johnson Rockefeller here. The only way to break that is by Boxer Kaufman Sanders say: Yes, we ought to do something Brown (OH) Kerry Schumer about this situation that hurt our getting 60 votes that will allow us to Burris Klobuchar Shaheen move to the product. Fifty-seven of us Cantwell Kohl economy so; that destroyed jobs, lives, Specter Cardin Landrieu and homes. have said: Let’s get there. Stabenow Carper Lautenberg What the Republicans voted against I have said this before, and I will say Tester Casey Leahy three times this week was simply to it again. At this juncture, this ought Conrad Levin Udall (CO) not to be a partisan issue. It may get Dodd Lieberman Udall (NM) start debating the Wall Street reform partisan over some of the ideas. I am Dorgan Lincoln Warner bill, to make it an even fairer system. fully aware that there are a number of Durbin McCaskill Webb The banking lobbyists may not want us Feingold Menendez Whitehouse to take up this bill, but everyday peo- my colleagues here who believe we Feinstein Merkley Wyden ought to get to this debate. We ought ple do want reform. They do want to get there sooner rather than later. NAYS—42 change. They do want to see capital That is not to suggest they agree with Alexander DeMint McCain flowing into small businesses so they the product by taking that position. In Barrasso Ensign McConnell can get on with work and planning Bond Enzi Murkowski fact, I suspect they don’t agree with at Brown (MA) Graham Nelson (NE) their families’ and their children’s fu- least some parts of this product. I Brownback Grassley Reid ture. think they understand the importance Bunning Gregg Risch On behalf of the everyday people, of getting to a point where we can try Burr Hatch Roberts whose side we are on, we will keep vot- Chambliss Hutchison Sessions to change this in some way. Coburn Inhofe Shelby ing to take up this bill until the other I will conclude. I make that appeal Cochran Isakson Snowe side understands that is what the once more. We have been through this Collins Johanns Thune American people want and gives them twice already. I hate coming and get- Corker Kyl Vitter Cornyn LeMieux Voinovich a break. ting into a partisan debate about this. Crapo Lugar Wicker Some say they voted no because they We should not do this. It doesn’t reflect wanted more time to make a deal. The NOT VOTING—2 well on this institution on a matter of reality is, the American people are fed this import not to allow this to go for- Bennett Byrd up with backroom deals that leave ward. The PRESIDING OFFICER. On this them out in the cold. We have carefully I yield the floor, and I yield back all vote, the yeas are 56, the nays are 42. listened to testimony that has been de- time. Three-fifths of the Senators duly cho- veloped these days. We are shocked to The PRESIDING OFFICER. All time sen and sworn not having voted in the find out how they think hiding the is yielded back. The clerk will report affirmative, the motion is rejected. deals was OK, but they didn’t want it the motion to invoke cloture. The majority leader. to be known to the public. They want The assistant legislative clerk read Mr. REID. Madam President, I enter us to roll up our sleeves, talk aloud as follows: a motion to reconsider the vote by about this bill, tell the public the CLOTURE MOTION which cloture was not invoked on the truth, vote on amendments, and pass a We, the undersigned Senators, in accord- motion to proceed. ance with the provisions of rule XXII of the strong Wall Street reform bill. That is Standing Rules of the Senate, hereby move The PRESIDING OFFICER. The mo- what the average person in this coun- to bring to a close debate on the motion to tion is entered. try wants. proceed to Calendar No. 349, S. 3217, the Re- The Senator from New Jersey. Why don’t the banking lobbyists like storing American Financial Stability Act of Mr. LAUTENBERG. Madam Presi- our bill? There are several reasons: Be- 2010. dent, I think it has been said before, cause it puts an end to giant, taxpayer- Christopher J. Dodd, Blanche L. Lincoln, but here we go again. What we have funded bailouts by creating a safe, re- Jeff Bingaman, Mark Begich, Charles just seen tells us what the American sponsible way to liquidate failing E. Schumer, Arlen Specter, Robert Menendez, Benjamin L. Cardin, Daniel people ought to know. There are funda- firms. They don’t like it because it will K. Inouye, Jack Reed, Edward E. Kauf- mental questions being asked of Sen- end the era of too big to fail and stop man, Byron L. Dorgan, Richard J. Dur- ators this week, principal of those: protecting irresponsible executives bin, Tom Udall, John F. Kerry, Sheldon Whose side are you on? Whom do you who mismanaged their companies and Whitehouse, Robert P. Casey, Jr. work for? because it will help prevent reckless The PRESIDING OFFICER. By unan- On Monday, Tuesday, and yet again gambling with investors’ money by imous consent, the mandatory quorum today we got an answer. On the other starting a new consumer protection call has been waived. side of the aisle they made it clear. watchdog. They don’t want those

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We have an infrastruc- bunch of smart people who decided that problems. Many struggle to find a job, ture that is even far more precious stuff is old-fashioned. We have to com- meet their monthly bills. Many are than our fiscal infrastructure; that is, pete with the Europeans, let’s allow struggling to pay for a college edu- our human infrastructure. We are holding companies to be created, and cation. Far too many of our people are going to continue to tell the American we will bring banks and investment unable to keep their homes from fall- people what is happening so we can banks and real estate and all these ing into foreclosure. That is why we make changes necessary to avoid the things together into one big holding have been working so hard to reform catastrophe we have had over this last company, under one roof. It will be our financial system, to make big couple years. fine. banks accountable, and shine the light Thank goodness that through the It turns out it was not fine. At the on Wall Street—but not on the other leadership of President Obama and the same time this was happening, big side of the aisle. administration and the work of col- holding companies now being created They literally have taken their leagues we are making progress, but in which you brought risky things in marching orders directly from Wall the progress is not rapid enough nor the middle of banking enterprises Street. We know key Republicans met broad enough. We are going to insist on whose very perception of safety and with Wall Street executives and polit- moving down the road of progress. We soundness is critical to their future—at ical consultants about how to attack are going to insist on doing what is the very same time that was hap- this bill, about not permitting us to ex- right for our country and for our fami- pening, we had a bunch of people come ercise the responsibility we have. But lies and for our future. I hope some- to town who were supposed to be regu- it is not working because we are on the body, someone on the other side of the lators, the referees, who said: You side of everyday people, the people who political aisle, will say: Listen, we are know what. We are going to be will- sent us here. They sent us here with a not getting anywhere by just walking fully blind. We are not going to regu- plea: Help us, help us with our lives, down the steps together and saying no late. We don’t even like government. help us take care of our families, help and not permitting change to take So do what you want. We will not us educate our kids, help us protect place that is critical for our society watch, we will not look. ourselves when health care is required. and our world. At the same time that was going on, The American people have made it I yield the floor. Alan Greenspan, at the Federal Re- clear they are not fooled by the delay- The PRESIDING OFFICER. The Sen- serve Board, decided we will let all ing tactics and secret deals. They want ator from North Dakota. these institutions behave in their own Wall Street reformed. Mr. DORGAN. Madam President, self-interest, and their self-interest In the last decade, we saw how much first, I wish to make a couple com- will be what governs what will be the power the financial sector has over our ments about what has just transpired right thing. entire economy. Irresponsible actions on the floor of the Senate. For the He now says that was a huge mis- by big banks led to the subprime bub- third time, we had a vote, not on any- take. Yes, I guess so, probably a $15 ble that led homes to appreciate far be- thing relating to the ingredients of a trillion mistake. But the fact is, those yond their worth and led millions of bill dealing with financial reform or who were supposed to be regulating and Americans to take on loans for which Wall Street reform, just on the ques- decided not to regulate, those who were they should never have qualified. The results were catastrophic and tion of the motion to proceed to debate supposed to be the referees to call the the collateral damage immense. Many the bill. Just the motion to proceed, fouls, wear the striped shirts, blow the of these people were seduced into tak- yes or no, shall we proceed to bring the whistle, call the fouls when the free ing loans they were advised they could bill to the floor and debate it? For the market system was being abused, were handle. They didn’t use good judgment, third day in a row, all the members of not around. They were out to lunch but they paid a heck of a price for it. the minority voted, no, we will not someplace for years and years and Eight million jobs were lost, retire- even allow the Senate to proceed to de- years. ment accounts shriveled, and small bate Wall Street reform. My colleagues who say, well, we do businesses shut their doors. It is unbelievable to me. In the shad- not want government to do this—look, The ethical failures of Wall Street al- ow of yesterday’s hearings, with one of I do not know who else is going to set most brought our economy to the the major investment banks of this the rules here to decide we are not brink of a second Great Depression. As country and the disclosure of e-mails going to let this happen again. Does it a former CEO of a major company, I deep from the bowels of that bank that take any amount of intelligence to un- understand the need for a strong finan- clearly suggested they were peddling derstand a mortgage company adver- cial sector. But I also come to work securities to clients and customers tising to people in the following way: every day reminded of the millions of that they knew to be bad securities and Do you have no credit? Slow credit? No people who have lost their jobs through also betting against the position of pay? Bankrupt? Come to us. We would no fault of their own. their clients, betting against a recov- like to give you a loan. Make no mistake, Wall Street re- ery for our country—in the shadow of On the floor of the Senate, I have form, Wall Street change is absolutely all that, how on Earth can the minor- shown solicitation after solicitation by necessary, and that is why we are going ity decide we should not even move to companies that said: If you have got to keep moving forward on this critical debate Wall Street reform? bad credit, slow pay, no pay, come to bill. We have to continue to take our I find it interesting we have people us. We would like to give you a home message to the American people and saying government cannot solve this. loan. It does not take a lot of intel- let the other people, on the other side There is too much government, too ligence to understand that does not of the aisle, say: No, no, no. Those on much this, too much that. When we work. the other side of the aisle may try to had suffered a Great Depression in this And by the way, they also said: If you disrupt. They may try to distort. They country, it was the Federal Govern- have got bad credit, come to us. In may try to destruct. But we are going ment that took action to put in place fact, we will not even ask you what to continue the fight for ordinary some things to try to protect our coun- your income is. We will give you a no- Americans, for people who wake every try’s economy and did so for about 60 document loan. You do not have to morning and play by the rules and or 70 years. They said: We are not document your income. It is called a no work hard. going to allow banks and FDIC-insured doc. By the way, we will give you a I repeat something I said a moment banks and investment banks and secu- liar’s loan. They do not call it that, but ago; that is, how can we ignore sup- rities dealers and others to commingle a no-doc is a liar’s loan.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2731 It does not take a genius to under- ness.’’ It was about the danger that de- We need a banking system, we need a stand that is not working very well. rivatives posed to the banking system. financing system, with all of the levels But why was everyone anxious to do all That is almost 16 years ago now. of finance. Yes, FDIC-insured banks. of that? Because you could wrap it into I made the same point in the year Yes, investment banks, venture cap- a big fat security. Then you could sell 1999 when Glass-Steagall was repealed, ital. We need all of those things. But it to an investment bank. They could and I opposed it. Very risky business. we need to get back to the basics of the sell it to a hedge fund. They could sell So they create synthetic credit default old-fashioned standard of what banking it back again. And, meanwhile, who- swaps. Synthetic would be the same as should and used to be; that is, taking ever made the original loan got rid of calling it naked credit default swaps. deposits and then making loans. the liability once they sold it up- That means, instead of having some- When you make a loan, you do what stream. thing at either end of a contract, there is called underwriting; that is, you sit They got the rating agencies to rate is nothing. It is two people making a across the desk from someone who these things as triple A. Incidentally, wager or a bet that something else will needs a loan, and you look them in the conveniently, the rating agencies are happen. eye and you evaluate: What is their in- paid by the very companies whose secu- I happen to think there ought not be come? What is their idea; their need; rities they rate. Sounds like trouble to what is called a naked credit default their property; and you decide, yes or me. So all of these things were hap- swap. I think they ought to be out- no. There has been no underwriting on pening, and everybody understands lawed. That is gambling. That is not many of those loans that helped create that is not going to hold up. Ulti- investing. That is betting. If you want this foundation of sand in this econ- mately all of this is going to collapse. to bet, there are plenty of places to bet omy. It is a house of cards that is being in this country, starting with Las There was no underwriting. Because built. So how do you put this back to- Vegas and Atlantic City. They have a if you could say to someone: You know gether? business doing that. No one ought to what, we will give you a new home Well, Senator DODD and the Banking show up on an airplane in Las Vegas or mortgage and you do not have to pay Committee put a bill together. That is Atlantic City, however, with their de- any interest, and you do not have to the bill we are trying to get to the positors’ money or with their clients’ pay any principal, even, and you do not floor of the Senate. I think it is a pret- money and decide that is what they are have to tell us what your income is— ty good bill. It tightens things up. It going to wager on a craps table or a that is a no-doc liar’s loan—we will do gives authorities to regulators they are keno table. that for you. Why would someone do Yet that is exactly what has been going to need and will try to prevent that? Because they are not going to happening with what are called naked this from ever happening again. have any risk. The minute they do it, credit default swaps. One study I have This was not some Hurricane Katrina they get it wrapped into a fat security seen suggests that of the credit default that came ashore and flattened a bunch swaps in England, and I suspect it and sell it to someone else. of buildings. This was not a volcano And because the rating agencies would hold true here, 80 percent of erupting. This was not a tornado that think all of these things are triple A, them had no insurable value on the came sweeping through and destroyed whoever else bought it thought it was a other side. the town. This was an economic catas- I would not be allowed today, this safe security, and then they sold it trophe that took away $15 trillion from afternoon, to decide I am going to buy again and again and again. You passed this country. It devastated a lot of an insurance policy on the house of the the risk forward. This was a cesspool of families, put a lot of people out of Presiding Officer in North Carolina. It greed with a lot of people making a lot work, a lot of people out of their would be illegal for me to say my inter- of money and creating a structure that homes, and in the meantime we see est today is to invest in fire insurance was destined to fall. what has happened. And while there on the Presiding Officer’s home, be- The question is: Are we going to do are substantial amounts of misery cause I have no insurable interest in something about that? Is somebody around this country for families and that home. And it might be that I going to take some action to say that people who have still not recovered would buy fire insurance, if I could, you cannot do that any more? That is from the devastation of this financial and walk around with a box of what the Senator from Connecticut near collapse, the folks at the top are matches. That is a problem. Right? So asks with a bill coming from the Bank- now making record profits. I have no insurable interest. It would ing Committee. Yes, the investment bank that testi- be against the law for me to buy fire The fact is, he brought that bill out fied yesterday, record profits, big bo- insurance on the home of the Presiding of the Banking Committee, and not one nuses. I described earlier bonuses of Officer. Republican offered an amendment. Not $142 billion were projected on Wall That is not the case with respect to one. They said, we are not going to par- Street. I talked about in the year 2008, naked credit default swaps. You do not ticipate. After they had had hearings at a point when this all began to col- have to have an insurable interest in for a year, and the Senator from Con- lapse, we had something like $36 billion anything. You, with someone else, say necticut had negotiated with them for in losses just on Wall Street. And those let’s make a wager here on what is 5, 6 months, following all of that, they firms that had $36 billion of losses paid going to happen to this bond. There is had a markup on a bill to write the $17 billion in bonuses to their employ- an investment bank. Perhaps the in- bill, and the Republicans said, we are ees. vestment bank will take part of that not going to participate. We will not I have an MBA and went to business wager. They will certainly want to ar- offer any suggestions, no amendments. school. There is not any book that range it because they get great big fat Then when the bill is now brought to teaches that in business school: Lose a fees. That is not investing in America. the floor of the Senate, the Repub- ton of money and get big bonuses. Yet That is not making loans to small and licans say: Well, we were not part of it. that is what has been happening. It is medium-sized businesses. That is not Well, sure, they decided they did not a carnival of greed at the top. investing in America’s future and want to be part of it, and that is why By the way, the instruments they strength; that is gambling. And that is they were not part of it. That was an created with these mortgage securities what we have come to. action they took. They say: Well, we and others, securitizing almost any- You cannot, in a country such as believe this is a bailout bill. It is not a thing they could get their hands on, ours, expand our economy without two bailout bill. I will tell them what a with exotic titles such as credit default things: production and finance. There bailout bill is. I voted against it. A swaps—credit default swaps. We have have been, over 200 years, times when bailout bill was when George W. Bush always known about derivatives. I production has the upper hand and and his Treasury Secretary came to wrote an article which was the cover when finance has the upper hand. We the Congress and said: I want you to story for the ‘‘Washington Monthly’’ have been through a period here in the pass a three-page bill in the next 3 magazine in 1994. That is almost 16 last couple of decades where the fi- days, putting up $700 billion to bail out years ago. My cover story for that nancing system of our country has the America’s biggest financial firms. Yes, magazine was titled ‘‘Very Risky Busi- upper hand. that was a bailout bill. And most of

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2732 CONGRESSIONAL RECORD — SENATE April 28, 2010 those who called this a bailout bill tem is the best allocator of goods and role I consider betting; it is a role I voted for that. They know what a bail- services that I am aware of, but it is consider to be investing. If they want out is because they voted for it. I did not perfect. Sometimes there are fouls to continue to simply make wagers not. in the free market system. Sometimes about America and about securities, But, nonetheless, this is not a bailout people try to manipulate it and do so that is not the financing system we bill. This is a bill that finally begins to successfully. That is why you need a have known and grown to believe is im- shut the door on activities that should referee and that is why you need effec- portant for this country’s future. never have been taking place. Is the tive regulations that work. I know there is a lot of disappoint- bill perfect? No. Should it be changed? That is what the bill is about. Put to- ment after this last vote. My hope is There are a number of areas where I gether those effective regulations that there will be some who continue to think it will be changed once it gets to work. Prevent this kind of economic think and rethink. Is this what my the floor. But you cannot even address collapse from happening again. This is constituents want? Do they want me to those unless you get past the motion to not just some academic exercise. There decide to block even the opportunity to proceed. are somewhere around 16 to 17 million address these unbelievable gaping holes What the minority is doing is saying, people today in this country who woke in our financing structure that allowed we do not intend to let you proceed at up this morning and they are jobless this country to be steered right into all. Well, how about deciding that we and do not have any work. Some of the ditch, the biggest economic wreck are going to do this together and we them not only feel jobless, but they in 70 years? I think they would under- will get the best of what both political feel helpless and hopeless because they stand that is not what citizens and parties have to offer, get the best cannot find work. Some of them, by their constituents want for the future. the way, have not only lost their jobs, amendments that can be offered. I have I yield the floor and suggest the ab- they have lost their homes. This is a suggested one; that is, naked credit de- sence of a quorum. fault swaps. If you have no insurable very deep recession we have been in, interest, ban them. and it has caused unbelievable pain The PRESIDING OFFICER. The Mr. Pearlstein, who writes a column across this country. But not for every- clerk will call the roll. for the Washington Post, made a sug- body. Because once again, some of the The assistant legislative clerk pro- gestion that makes a lot of sense to largest financial institutions in this ceeded to call the roll. me. Why would you allow more securi- country are now showing record profits Mr. CARDIN. I ask unanimous con- ties in the form of credit default swaps and paying record bonuses. sent that the order for the quorum call to insure bonds? Why would you allow The question is, are they doing that be rescinded. more of them than there are bonds to because they are making loans out The PRESIDING OFFICER. Without insure? there to businesses that are ready to objection, it is so ordered. Well, the answer is obvious, because recover and to expand? No. The answer Mr. CARDIN. Madam President, let that is gambling above that level. It is is, unfortunately, no. Once again they me express to my colleagues how dis- very much like about a year and a half are trading securities back and forth, appointed I am that we were unable to ago when the price of oil, or almost 2 exchanging fees, securitizing virtually move forward with debate on Wall years ago, the price of oil went to $147 everything. There is a much better way Street reform. People should know a barrel in day trading, and I made the to do financing and banking in this that what we recently voted on was a point on the floor: There was 20 times country that will strengthen the future motion to proceed so a bill could be more oil bought and sold each day than of this country. I want to get at the brought to the floor for debate. It did there was produced each day—an unbe- business of getting this bill to the not speak to how that bill would be lievable orgy of speculation in the oil floor, having the minority stop block- considered. It is open to amendment. market. Nearly broke that market. ing us, and begin offering amendments Each Member of the Senate would have Well, it finally came back down and so we can get the best of what both the opportunity to submit amendments the people who made the money on the parties have to offer. for consideration. upside also made money on the down- It has been a long time since we have The bill Senator DODD has brought side. But, you know, that is what has had that sort of thing happen on the out of his committee is a bill that es- been happening in this country now for floor of the Senate. I was hoping that if tablishes the types of reforms of Wall too long. there is one thing that might galvanize The bill that should come to the floor some bipartisanship in this body, it Street that are necessary, strict new of the Senate—and my hope is that per- might be an understanding of the unbe- regulations to stop Wall Street gam- haps the next vote will have a couple of lievably excruciating pain the Amer- bling so that we have a clear responsi- folks on the other side who agree with ican people have felt as a result of the bility in the regulatory framework, so us, let us bring a bill to the Senate, let deepest recession since the Great De- each of the financial institutions un- us address these issues that caused this pression and perhaps an understanding derstands the clear roles which they unbelievable avalanche of greed on that the American people demand that must operate under and how those reg- Wall Street and elsewhere, and let us this Congress stand up and do some- ulations will take place. The frame- tighten the reins so this cannot happen thing about it, to try to do the things work is based upon the size of the insti- again. that plug the holes and shut the gates tution and the jurisdiction. Do we want to continue the practice? and prevent this sort of thing from The bill provides for adequate capital I showed yesterday on the floor of the ever happening again. I guess that was to prevent too big to fail. Our first goal Senate I think four examples of compa- too much to hope for, at least until is to avoid an institution from becom- nies that are still advertising: Do you now, on Wednesday. We will have an ing so large, so vulnerable that its fail- have bad credit? Come to us. We will opportunity on Thursday and Friday, ure jeopardizes the economy. If we give you a loan. Do you have no credit? perhaps, and I hope perhaps we can get have a clear regulatory structure and Slow pay? Come to us, we will give you one or two people who agree with us to the right capital rules and the right a loan. Okay. Are you bankrupt? Come say: Yes, let’s bring this to the floor, regulatory oversight, we have a much to us, we will give you a loan. have it wide open for amendments, better chance of protecting the public’s It is still going on. All of this is offer amendments, debate amend- interest. That is why the strict new about securitizing everything and ev- ments, and do what is necessary for the guidelines to stop Wall Street gam- erybody making big fees and being paid people. bling are critically important, so that big bonuses. There is a smarter way to I know the biggest financial institu- we don’t run into that situation from do financing and banking in this coun- tions have some big disagreements the past. try. We have watched it work for dec- with this bill, but I have some big dis- No more taxpayer bailouts. I hear ades, and it has gotten far afield in the agreements with them. I think what that over and over again from my con- past decade or two. We need to pull it has gone on is pretty unbelievable. stituents. I agree. If an institution back in and say, that is not what our They have a role to play in this coun- can’t make it, it should fail. It should country is about. The free market sys- try’s future going ahead, but it is not a not be getting a government bailout.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2733 This bill makes it clear: no more gov- gotiate in good faith; the opposition is debate—whether it is a good idea or a ernment bailouts. It gives the regu- to avoid the public knowing the bad idea—and now you are looking at lators the authority they need to inter- changes they are seeking in the bill or trillions of dollars of taxpayer money vene a lot earlier and, if necessary, to to weaken this bill or, even worse, in being placed at risk, and we do not restructure the institution or to break the hopes that major sections of this know who received that. That, to me, it apart or to have it merge or to close bill will be deleted or struck. That is is an outrage and that, to me, is unac- it down. It does not involve public not what the process should be about. ceptable. funds. We will have a regulatory struc- We need to move forward with Wall On that very day, after Ben Bernanke ture. Street reform. We all know how our denied the American people the right Today, we see institutions that call economy was brought to near the brink to know who received those loans, I in- themselves banks that are not regu- of destruction. We know how many troduced legislation requiring the Fed lated under banking statutes. We find millions of Americans have been ad- to put that information on their Web insurance companies that claim they versely affected by what happened on site. are insurance companies but they do Wall Street. People of Maryland, the The Presiding Officer knows as well things other than insurance and get people of the Nation are saying: Let’s as I do, millions of lives have been ru- themselves into trouble, and there is reform Wall Street. Let’s make sure ined by the greed, the recklessness, and no regulatory consistency. That will the reckless gambling doesn’t take the illegal behavior of Wall Street. change with the bill Senator DODD has place in the future. Let’s make sure While the Fed was providing secret brought to the floor. too big to fail ends. Let’s make sure loans, at virtually no interest, to some This bill puts consumers in control of those who are responsible are held ac- of the largest financial institutions in information in plain English, by a countable. The Dodd bill is a very good this country, millions of Americans strong consumer provision within the start to the process. were losing their jobs, their homes, bill. This is absolutely necessary. We Debating the issue is what we should their life savings, their ability to send know today that consumers and small be doing in the Senate. The delay is their kids to college—as a direct result businesses are being victimized under aimed at preventing the public from of the same Wall Street firms the Fed the current financial structure. Con- knowing what is going on or, even was propping up. sumers have been victimized by preda- worse, weakening this bill or making So you have a situation where all tory lending. Small businesses have sure it doesn’t pass. over this country families are suf- been victimized by banks that won’t I urge my colleagues to reconsider. fering, small- and medium-sized busi- make loans to small businesses. We Let’s move forward and debate the nesses are in desperate need of afford- need a strong consumer presence. Sen- Wall Street reform bill. Let’s get on able loans. Yet you have the Fed pro- viding trillions of dollars to the people ator DODD, in his bill, has brought out with the people’s business first, our Na- an independent consumer agency. tion’s security first, our Nation’s eco- who caused the recession and to some What this bill provides is tough regu- nomic growth first. Let’s bring this bill of the wealthiest and most powerful lation, the framework in which we can to the floor for immediate debate. CEOs in the country. The very least we can do for the intervene earlier in order to protect I yield the floor and suggest the ab- American people is to tell them, to the economy, no government bailout, sence of a quorum. give them the information as to who and a way in which consumer issues The PRESIDING OFFICER. The got bailed out by the Fed. I do not can be handled independently to pro- clerk will call the roll. think that is too much to ask. We have tect consumers. The assistant legislative clerk pro- Why not move forward? I am puzzled. ceeded to call the roll. to explore whether there were conflicts I listened to my colleagues who oppose of interest. How does it work when fi- f nancial institutions get huge amounts bringing this bill forward speak on the Mr. SANDERS. Madam President, I of zero or near zero interest loans? Who floor. I still don’t understand their ar- ask unanimous consent that the order sits on the committee? Are there con- gument. If we move forward, amend- for the quorum call be rescinded. flicts of interest? ments are in order. Amendments that The PRESIDING OFFICER. Without We have to know, for example, what are germane will have to be considered, objection, it is so ordered. I believe to be the case: that some of will have to be voted on. Those are the Mr. SANDERS. Madam President, those financial institutions that re- rules of the Senate. For us to move the since the beginning of the financial cri- ceived billions in zero or near zero in- bill off the floor, we will need at least sis, the Federal Reserve, the Fed, has terest loans may have invested that 60 votes. We know that. It should not provided over $2 trillion in taxpayer- money in T-bills, in Treasury bonds, take it. It should be an up-or-down backed loans and other financial assist- earning 3 or 4 percent interest. What vote. But we know from the prior ance to some of the largest financial kind of scam is that? You get zero in- record that the minority will insist institutions and corporations in the terest loans from the Fed, and you in- upon 60 votes. We should be willing, on world. Let me repeat that: over $2 tril- vest in government-backed T bonds at an important issue such as this, to vote lion—with a ‘‘t’’—$2 trillion. 3 or 4 percent interest. That is an in- up or down on amendments and final Over a year ago, as a member of the credible scam. Did some of those finan- passage, but they will still have that Budget Committee, I asked Ben cial institutions do that? I suspect right. So they are not jeopardizing the Bernanke, the Chairman of the Fed, a they did. But we do not know what ability of the minority to block final very simple question—very simple they did with that money and we have consideration of the bill. question; it could not be simpler—and a right to find out. What they are doing is blocking de- the question, in so many words, was: Let us be very clear: The money put bate on the bill. The only thing I can Mr. Bernanke, you lent out $2 trillion. at risk does not belong to the Fed. It think of is that they would prefer to Who got that money? Who received the belongs to the American people. The work out their issues behind closed money? What were the terms of those American people have a right to know doors rather than on the floor of the loans? where their taxpayer dollars are going. Senate. The reason is kind of self-evi- Mr. Bernanke’s answer was: No; I am Therefore, during the debate on finan- dent: If you are trying to weaken the not going to tell you, Senator SAND- cial reform, I will be offering an regulatory framework and you don’t ERS. I am not going to tell the Budget amendment to audit the Federal Re- want your fingerprints on it, it would Committee, and I am not going to tell serve and to require that the Fed re- be easier to do that outside of the spot- the American people. lease all the details regarding the more light of the Chamber. If you are trying I think that is outrageous. I think than $2 trillion in virtually zero inter- to diminish the consumer protections when $2 trillion of taxpayers’ money is est loans the Fed has provided to large in the bill, you certainly would rather placed at risk, the American people financial institutions since the begin- have that in a bill brought to the floor have a right to know. How many de- ning of the economic crisis. than having to offer an amendment to bates have we had on the floor of the We talk a lot around here about the change it. I can only presume from the Senate about legislation dealing with need for bipartisanship or delay that the opposition is not to ne- $5 million, $30 million, with feverish tripartisanship. I am an Independent.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2734 CONGRESSIONAL RECORD — SENATE April 28, 2010 Well, this amendment does that. I do Last year, the Speaker of the House, operations, where average people who not know that there is any amendment NANCY PELOSI, said Congress should are struggling economically go in for out there that has more bipartisan sup- ask the Fed to put this information high-interest loans that are then rolled port. This amendment is being cospon- ‘‘on the Internet like they’ve done with over, time and time and time again, sored by Senators FEINGOLD, LEAHY, the recovery package and the budget.’’ until they lose whatever security has WYDEN, DORGAN, and BOXER; Demo- That is exactly what this amendment been offered for the loan and, frankly, crats. It is being cosponsored by Sen- would do. Interestingly enough, not find themselves even deeper in debt. ators DEMINT, MCCAIN, GRASSLEY, only do we have widespread bipartisan I would like to ask the Senator from VITTER, BROWNBACK, GRAHAM, RISCH, support in the Congress, not only has Vermont, whom I have discussed this and WICKER; Republicans. But, quite the House moved vigorously on this with on many occasions, his thoughts significantly, on the base bill I intro- issue already, but, importantly, the about consumer financial protections duced, from which this amendment courts have ruled in support of what we and the interest rates being charged comes, this legislation is being sup- are trying to do. across this Nation. ported by 32 cosponsors; that is, 22 Re- Bloomberg News has been very ag- Mr. SANDERS. I thank my friend publicans and 10 Democrats, and they gressive on this issue, and they have from Illinois for raising that question. run the gamut from some of the most won court decisions requiring the Fed I wish to congratulate him because our conservative Members of the Senate to to release this information to the pub- colleagues should know he has been a some of the most progressive. lic. But despite widespread congres- leader on this issue for many years and The Senators who are supporting the sional support, despite two court deci- has already achieved some significant base bill are Senators BARRASSO, BEN- sions, the Fed continues to resist the success. NETT, BOXER, BROWNBACK, BURR, transparency which our country des- My memory is, we had payday lend- CARDIN, CHAMBLISS, COBURN, COCHRAN, perately needs. ers that, if you can believe this, were CORNYN, CRAPO, DEMINT, DORGAN, As long as the Fed is allowed to keep charging men and women in the U.S. FEINGOLD, GRAHAM, GRASSLEY, HARKIN, the information on their loans secret, Armed Forces—who, in many cases, do HATCH, HUTCHISON, INHOFE, ISAKSON, we may never know the true financial not have a lot of money, who are try- LANDRIEU, LEAHY, LINCOLN, MCCAIN, condition of the banking system. This ing to take care of their families—out- MURKOWSKI, RISCH, THUNE, VITTER, has resulted in a whole myriad of prob- rageously high interest rates on check WEBB, WICKER, and WYDEN. lems, and I think it is time we brought cashing and payday loans. The Senator That is a very broad cross-section of some sunshine to the goings on of the from Illinois led the effort successfully the Senate, from some of the most con- Fed. to put a cap on that, and I thank him servative to some of the most progres- Let me conclude by saying this: The very much for doing that. That is a sive Members on the base bill, who say American people are outraged, regard- start. it is absurd that the Fed could lend out less of their political views, by the be- But, clearly, as the Senator from Illi- trillions of dollars without the Amer- havior of Wall Street. They have seen nois indicates, we have to go further. ican people knowing who has received the greed of Wall Street lead us into a Here is the story. Just a couple weeks that money. recession in which millions of jobs ago, there was a rally, right here on Let me tell you what our amendment Capitol Hill, led by religious groups— would do, and it is pretty simple. No. 1, have been lost, homes have been lost, religious groups—who said it is im- it would require the nonpartisan Gov- savings have been lost, families have moral and unacceptable that in the ernment Accountability Office, the been destroyed, and they want to make United States of America we are now GAO, to conduct an independent and sure we do everything we can to make seeing usury and loan sharking taking comprehensive audit of the Fed within sure what caused this terrible recession place by some of the largest financial 1 year. Secondly, it would require the never happens again. institutions in this country. So we are Fed to disclose the names of the finan- I think one of the most important not just talking, I would say to my cial institutions that received over $2 things we can do in terms of Wall friend from Illinois, about an economic trillion in virtually zero interest loans Street reform is to bring transparency issue; we are talking about a basically since the start of the recession. That is to the Fed. So this is an incredibly it. That is the whole amendment. Pret- simple amendment. This is an amend- moral issue. If one reads the Bible, the ty simple. I would hope and expect we ment that has grassroots support. This Old Testament, the New Testament, would have widespread bipartisan sup- is an amendment that has support from the Koran, every major religion on this port for this amendment when it gets the most progressive and conservative planet has said that usury is immoral; to the floor. Members of the Congress. that if you are desperate and you need This amendment also has widespread When I bring up this amendment, I money, I cannot charge you out- community support from organizations certainly hope we can get a great deal rageously high interest rates. That is all over this country. It has the sup- of support from Members of the Senate. immoral and the wrong thing to do. port of Americans for Financial Re- Mr. DURBIN. Madam President, will Yet in this country today, as a result form—a coalition of over 250 consumer, the Senator from Vermont yield for a of a Supreme Court decision some employee, investor, community, and question? years ago, we have millions of Ameri- civil rights groups, including the AFL– Mr. SANDERS. I am very pleased to cans who are paying 25, 30, 35, 40 per- CIO and the AARP. yield to my friend from Illinois. cent interest rates. This is not from I should also mention that increasing The PRESIDING OFFICER. The Sen- loan shark gangsters on a street corner transparency at the Fed is obviously ator from Illinois. in Chicago; this is from some of the something the American people want Mr. DURBIN. I would like to ask the largest, most distinguished financial to see, and poll after poll suggests that. Senator from Vermont, through the institutions in the world. We have to This amendment is similar to the Chair, about another issue in this bill put an end to that. Federal Reserve Transparency Act that relative to the interest rates that are I would tell my friend from Illinois was introduced in the House by Con- being charged across America. I would that the legislation we have offered gressman RON PAUL and now has 320 bi- like to ask the Senator from Vermont would put a cap of 15 percent, except partisan cosponsors. That is a lot. if he would tell me his take or evalua- under extraordinary circumstances, on There are 435 Members of the House, tion of the provision in this bill which the interest rates banks can charge the and 320 are on the House bill. A version exempts usury laws and interest rates American people. We came up with this of that bill passed the House Financial from the consideration of the Con- idea because this is what credit unions Services Committee by a vote of 43 to sumer Financial Protection Agency. in this country have been doing for sev- 28 and was incorporated into the finan- I know the Presiding Officer has an eral decades, and they have been doing cial reform bill that passed the House interest in some exploitation that is it successfully. last December. So not only do we have occurring in her State of North Caro- Mr. DURBIN. Madam President, I widespread bipartisan support in the lina—frankly, in my State of Illinois, wish to ask through the Chair again— Senate, that same type of support ex- and probably across this Nation—by first, I wish to give credit where it is ists in the House. the so-called payday loan and title loan due. The original amendment we

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2735 talked about that protects military are empty on the Senate floor, chairs Mr. BURRIS. Madam President, we families was offered by Senator Jim that could be filled with Members of just witnessed a few moments ago the Talent of Missouri, and I supported it the Senate from both political parties third attempt to try to do something and everyone supported it because we debating the issues we are talking about financial reform legislation in found men and women in the military about; actually voting on amendments, this body, and for the third time, it trained to defend our country who proposing changes in the law to ulti- went down. I am an old baseball player. signed up for these payday loans and mately work with the House and send I played a lot of baseball in my young quick loans, and they became so deeply it to the President to solve some of the days, and there is a rule in baseball mired in debt they were forced to leave problems of our Nation. But as long as that says three strikes and you are out. military service. So we said as a mat- we are facing—and we have had three Well, we have had three tries at this fi- ter of national security, we can’t sac- filibuster votes so far this week with nancial reform, and I will tell my dis- rifice well-trained men and women who more to follow—as long as we are fac- tinguished colleagues on the other side can keep us safe as a nation to loan ing this Republican filibuster where of the aisle: We are not out. We are just sharks who have these storefront oper- not one single Republican Senator will beginning to fight under the cir- ations in my hometown of Springfield break with the Republican caucus or cumstances we are confronted with be- and in your hometown in Vermont and the Wall Street position that opposes cause we are fighting on behalf of the all across the Nation. any reform, we can’t even bring this American people. I would say to the Senator from bill to the floor for debate so we can Earlier this week, our distinguished Vermont—and he and I have joked address the biggest economic and fi- majority leader called for a vote to about this a little bit—I tried to come nancial challenge America has faced in open the debate on major financial re- up with a number to say this will be decades. form. We have seen well-designed pro- the maximum interest rate that can be Mr. SANDERS. Madam President, posals from the Senator from Con- charged. I went to a mutual friend my friend from Illinois is exactly right. necticut, Chairman DODD. This bill re- whom I respect and said: What is a Let me just add to it. We have the flects the priorities articulated by number that no one can argue with? House of Representatives that voted to President Obama and supported by an She said 36 percent. When I mentioned go forward. We have the President of overwhelming majority of the Amer- that number to people back in Illinois the United States who wants to go for- ican people. It will end the so-called and other places, they were aghast. ward. We have 57, or whatever the ‘‘too big to fail’’ and prevent massive They said: We don’t want to pay 36 per- number is, Senators who wish to go banks from making risky decisions cent for anything. I said: I don’t either. forward. Now is the time to go forward. that threaten the entire American But this is like a ceiling. I would add to what my friend from economy. It will eliminate the need for Well, it turned out it is a little more Illinois has just said. Let’s be very government bailouts, and it will insti- confusing than illuminating. I happen clear about this. Last year, in 2009, as tute commonsense regulations so com- to think the Senator from Vermont is I understand it, our friends on Wall panies cannot create investments that Street who are doing everything they certainly right with the cap he is sug- are designed to fail and then bet can to make sure Congress does noth- gesting. against them. Now, is it not true, I ask the Senator ing to reform the way they do busi- In short, this legislation is a good from Vermont, as this rollcall vote re- ness—that is what they want; let’s be starting point. As a matter of fact, we clear about it—do you know what they flects, if the Republican Senators in have heard Chairman DODD say time this Chamber continue this filibuster spent last year? I would tell my friend and time again we have to get it on the against this financial reform bill, this from Illinois that my understanding is Senate floor so we can improve this Wall Street reform bill, this consumer they spent $300 million on lobbying and legislation. I know I am supportive of a campaign contributions. financial protection bill, we can’t even couple of amendments that would be I know my friend from Illinois knows engage in this debate, let alone this beneficial to improve the legislation. It that we can’t walk around the Capitol amendment, to try to protect families without bumping in to one or another may not be the complete Wall Street across America from being preyed upon lobbyist representing Wall Street. Why reform package in its final form, but it by these outrageous reptilian credit op- are they here? Why are they rep- contains a number of good provisions, erations? resenting hedge fund managers who and it is worth debating. So I am ask- Mr. SANDERS. The Senator from Il- ing my colleagues, let’s stop debating linois is, of course, absolutely right. make billions of dollars in a year? They want to be able to continue to do to debate. The point the Senator from Illinois is The majority leader scheduled a vote the exact same things they have done making, which makes eminent sense, is to bring this bill to the floor so Mem- in the past which has led to this ter- if our friends disagree, if our friends bers of both parties could offer amend- want to offer an amendment, if the Re- rible recession. So let’s not be naive. There are huge ments and make improvements. This publicans want to alter the bill, that is amounts of money flooding Capitol Hill was not a vote on the legislation itself. their right. That is what the Senate is right now, and the goal is, no matter Leader REID was not asking the Senate about. But we can’t proceed or go for- what anybody may say: Let’s do no to pass the bill without debate or with- ward in putting a cap on the out- Wall Street reform. out amendment. He simply wanted to rageous interest rates financial institu- Mr. DURBIN. I thank the Senator start the process. He wanted to begin tions are charging the American peo- from Vermont for yielding for ques- deliberations on the floor of this Cham- ple—the loan sharking—unless we get tions. I yield the floor and unless some- ber in front of C–SPAN cameras and in this bill going. We can’t talk about Fed one—— front of the American people. But when transparency unless we get this bill Mr. SANDERS. Madam President, I the roll was called and my colleagues going. wish to thank the Senator from Illinois and I came to the Chamber, every sin- So I certainly agree with my friend for his continued efforts on Wall Street gle one of my Republican friends voted from Illinois. People have a right to reform and the excellent work he has to block the debate, plus one of ours. disagree, but the American people are done. So we will try again, I hope, this disgusted and frustrated with what is Mr. DURBIN. I suggest the absence of afternoon, if not tomorrow, but we are going on on Wall Street. They want ac- a quorum. not playing baseball on the floor of the tion. So to simply have our Republican The PRESIDING OFFICER. The Senate. This is not the all-American friends saying: No, no, no, we are not clerk will call the roll. game, but it is the all-American future. going forward, doesn’t make any sense The bill clerk proceeded to call the There was a second vote to start de- to me. roll. bate—to move ahead this process and Mr. DURBIN. Madam President, I Mr. BURRIS. Madam President, I ask take up the consideration of financial would ask the Senator from Vermont unanimous consent that the order for reform. But for a third time, my Re- through the Chair, as informative and the quorum call be rescinded. publican friends stood in the way. They as entertaining as our presentations The PRESIDING OFFICER. Without know they will have plenty of oppor- are on the floor, the fact is, 98 chairs objection, it is so ordered. tunity to try and defeat the bill once it

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2736 CONGRESSIONAL RECORD — SENATE April 28, 2010 is on the Senate floor, but they decided Without intelligent risk manage- Mr. President, I yield the floor. to drag their feet anyway. ment, capital standards, and basic The ACTING PRESIDENT pro tem- We have seen this kind of thing be- rules of the road, these bets have the pore. The Senator from Missouri is rec- fore. This is the same Republican play- potential to undermine the strength of ognized. book we saw with health care reform, our entire economy. Wall Street is a Mr. BOND. Mr. President, I am de- the same obstructionism, the same casino gone wild, and they are gam- lighted to join in this debate, and I in- tired politics. In the past, they have bling with our money not theirs. They vite my friends on the other side to lis- been able to use this strategy to score are making money off of our money. ten to what the people in communities political points. This time, I would re- The American people know this. in our home States are saying, who spectfully suggest that my Republican They can see through the distractions don’t spend time soliciting funds on friends have miscalculated. The issue and political posturing. They recognize Wall Street. of health care reform was complicated, the need to reform Wall Street so we Let’s be very clear: We all agree we so when it came time for debate, it was can end bailouts, put commonsense need to hold Wall Street accountable easy to distract and delay and to rules in place, and make sure we never for the havoc wreaked on Main Street. spread misinformation. experience this kind of economic crisis We all agree we need to enact reform to It was easy to muddy the waters so ever again. prevent another financial crisis. Where they could gain traction and delay I am not sure what my Republican we disagree on is what the responsible President Obama’s agenda. When the friends hope to gain by blocking our reform looks like. I have real concerns health care debate was over, good pol- debate on this bill. They say they want that, in its current form, the Demo- icy won out over good politics, and we to improve it, but that is exactly what crats’ bill, written with the White passed the bill—but not before my we would be able to do once it is on the House, is a massive government over- friends on the other side had scored floor. Maybe they believe they can reach that will punish Main Street, some political points. water down our reform package by hurt families, and cost jobs by stifling This time it is different. Financial dragging out this process. Maybe they small businesses and entrepreneurs. reform itself is very complex. That is would like the chance to hold some To sum it up, Democrats want to why it is so easy for big banks to take more Wall Street fundraisers before treat Main Street, our community advantage of consumers. That is why it they have to take a vote on the legisla- banks, our farm lenders, and our auto is difficult to apply the kind of over- tion itself. Maybe they simply don’t dealers like they were Goldman Sachs sight we should have seen in the years have an alternative plan, and they or others on Wall Street. We Repub- leading up to the recent collapse. know they cannot win this argument licans want to ensure we fix Wall The issue itself is hard. This time on the floor of the Senate, with the Street, without crippling Main Street. around, the tactics of distraction and eyes of the Nation on them. The only way to do that is to force the delay will not work. That is because I am not sure what they hope to gain Democrats to listen to the concerns of Americans are smarter than that. They by stalling financial reform. I urge my Main Street, to open this up and make know who the bad guys are. distinguished colleagues on the other it a bipartisan process. It has not been, About 2 years ago, Lehman brothers side to please let us move ahead with and it isn’t going to be until we get was one of the first dominoes to fall. this process. I urge them to set aside some discussion and real substantive Next came Bernie Madoff. Then a hand- these political tactics and bring their changes in what I view as a very dan- ful of other Ponzi schemes came crash- ideas to the table so we can strengthen gerous bill to the economic climate ing down. Most recently—just yester- this bill and make sure our economic and health of our country, our States, day—we witnessed Goldman Sachs, one future is safe. our communities, and the creation of of the largest and most respected firms I call upon them to join us in debat- jobs. on Wall Street, was charged with fraud. ing, amending, and improving this im- Today, let me share with you some of When it comes to financial reform, portant legislation rather than drag- the concerns I have heard from Main we know where the problem lies. My ging their feet on a bill that has so Street. Like families in every commu- Republican friends can try to distract much public support. nity and every State, small businesses and obstruct all they want, but they When we pass this into law, after ex- were the victims. They weren’t the per- will not succeed in confusing the Amer- tensive discussion, it will be a victory petrators of the financial crisis caused, ican people. Ordinary folks have had for the American people. If my Repub- among other places, on Wall Street. their pocketbooks bled dry by this fi- lican friends join us in this effort, it Small businesses were not respon- nancial crisis. They have seen their can be a victory for both political par- sible for the financial crisis and should hard-earned savings disappear and ties, as well. We will all benefit. The not be treated as if they were. But that their future become dramatically less American people will benefit. is exactly what this bill does. This secure, and they know exactly who to This legislation deserves to be de- 1,400-page bill reaches far beyond Wall blame. bated in open session. I ask my Repub- Street and will impose new costs and For far too long, Wall Street banks lican friends to let us move ahead. But onerous new regulations on small busi- have been subject to relaxed oversight. if they will not, and they continue to nesses to fix a problem they were not As a result, the focus of their business delay and obstruct, then I challenge responsible for causing. In short, this has changed. It stopped being about them to come to the floor and explain. bill would change the way every Amer- lending money to businesses, making I challenge any one of my distin- ican does business. smart investments, and encouraging guished colleagues on the other side of We are not just talking about chang- free enterprise. When I was in the the aisle to walk into the Senate ing the way Wall Street banks do busi- banking business, that is what we did. Chamber today and seek recognition ness, but also how every community I was at the biggest bank in Illinois, from the Chair. I challenge them to banker, local dentist, farm lender, and the seventh largest bank in America, stand before the American people and auto dealer does business. I urge my where we worked with companies, tell them why American families colleagues to take time away from the made loans, collected interest, and should be asked to fund Wall Street’s floor and listen to the people at home. took the people’s deposits in and paid recklessness and greed. They have a very different message them interest. And we kept the econ- I want them to explain that, Mr. than that which we are hearing from omy going. President. I believe we need to end our friends on the other side of the Instead, Wall Street has basically these practices. I believe we need to aisle. turned into a casino. Look at the de- take up the issue of financial reform These concerns are not just Repub- rivatives market. Here you essentially without delay. If my friends on the lican concerns. I hope my colleagues on have an object that is being traded other side disagree, it is their privilege the other side of the aisle are also that has no value of its own. It has no to do so. But I believe they owe the hearing from their constituents back ties to the actual economy. There is no American people an explanation. I am home about disturbing provisions in product, no business idea, and no ac- pretty sure it will be very difficult to the Democrats’ proposal and have tual investment. It is just a high- explain to them why they are holding begun to agree with Senate Repub- stakes bet. up this important piece of legislation. licans that there is a lot of work to be

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2737 done before we bring this 1,400-page provides, which this country des- and retired military members who fear monstrosity to the floor. perately needs. Raising the net worth this bill would hurt their financial se- Don’t misunderstand me. Like the threshold for those who can invest in curity. You see, under the Democrats’ nearly two-thirds of all Americans who these venture capital firms to $2.3 mil- bill, United Services Automobile Asso- favor some sort of reform of Wall lion from the existing $1 million, and ciation—USAA, a financial and insur- Street, so do I and my Republican col- raising the annual household income ance provider for members of the U.S. leagues. But we need responsible and threshold to $450,000, as the Dodd bill military and their families—would, bipartisan reform that all Americans proposes to do, would disqualify two- after an 87-year track record, no longer and businesses can be proud of. I want thirds of the current accredited inves- be able to manage their own portfolio. to work with my friends on the other tors, according to the Wall Street Also as a result of the Dodd bill, this side to ensure that the concerns I have Journal, who otherwise would help company that serves our military and heard from Missourians—1,000 miles fund small startups in our commu- veterans would have their ability to away from Wall Street—are addressed nities. These are the people whom offer certain competitive products to as the process moves forward. these innovators and entrepreneurs servicemembers and their families First, I continue to be stumped that have to go to, and this will make it im- jeopardized and their ability to return any real form of our financial system possible for them to get the money money to servicemembers and their could ignore Fannie Mae and Freddie they need. Therefore, some woman, families limited by this massive expan- Mac, which were significant—if not the some man with a great idea is much sion of government authority. This majority—contributors to the financial less likely in your hometown to be able must be fixed. I would urge my col- crisis. But that is what this bill does. to get the funds she or he needs to leagues to listen to the military and That is a mistake, and so is leaving out start a business. veterans and their families in your the rating agencies who gave triple-A I believe strongly—and I have always States. See what they think. Unfortunately, the unintended con- ratings to bad paper that was foisted said and will continue to say—that sequences of this bill keep piling up. small businesses and the startup com- on the system. The next major concern I have heard Fannie Mae and Freddie Mac—these panies are the backbone of our coun- from Missouri community banks that government-sponsored GSEs—contrib- try. I understand the critical role these provide critical lending to families and so-called angel investors can play in uted to the financial meltdown by buy- small businesses is the creation of the ing high-risk loans made to people who the creation and development of new so-called Consumer Financial Protec- could not afford them. In addition to companies, small or large. Let me tell tion Bureau—CFPB. This massive new the cost to taxpayers, these irrespon- you about my position. Right now, in government bureaucracy has unprece- sible actions turned the American Missouri, I have been working to help dented authority and enforcement pow- dream into the American nightmare build an agri-biotech corridor across ers to impose mandates on any entities for too many families who faced fore- the State. In Missouri, we have the po- that extend credit. We are not just closure, lost their homes, which dev- tential to foster a whole new industry talking about big Wall Street banks astated entire neighborhoods and com- in advanced agricultural research and here but also your community banker, munities as the property values dimin- biotechnology. This agriculture re- your local dentist. Dentists are telling ished, as well as the credit rating of search and biotech industry is our best me that if they offer credit, they would the families displaced. opportunity to stimulate and create be regulated. Farm lenders would find Responsible reform must address the high-paying skilled jobs in rural Mis- it very difficult for them to be able to GSEs. Responsible reform would put an souri, rural America, and in the cities operate to make their farm loans and end to the taxpayer-funded bailout of as well. to be able to hedge the risk that they Fannie and Freddie and refocus them The stimulus these biotech compa- normally do. Auto dealers can sell cars on promoting affordable housing. nies are spurring in Missouri is also only through the benefit of private sec- Next, it is critical that in reforming happening in other States across the tor financing. As a result, there will be Wall Street, we are not punishing Main Nation. According to the Kauffman no choice but to pass the costs on for Street. Instead, we should be pro- Foundation, located in Kansas City, be- this financing, if they can get it, to the tecting small business startups that tween 1980 and 2005, companies less consumers—the very people this bill is are so critical to job creation. than 5 years old accounted for all— supposed to protect. And it may cut Unfortunately, this bill will kill all—net job growth in the United some of them out of getting credit al- small business startups. While title IX States. As a matter of fact, the same together. of the Dodd bill has been little noticed, study showed that in 2008, angel inves- The National Federation of Inde- it would have devastating con- tors provided roughly $19 billion in pendent Businesses, a strong voice for sequences. Specifically, this provision more than 55,000 companies. You are small businesses, voiced their serious would kill small business startups by going to put an end to that with this concern over the creation of this new delaying and limiting the availability bill? bureaucracy. I am sure you all have re- of private investor seed capital, which Let us go back and think about it be- ceived it, but if you have not, I would is essential for the survival and growth fore we bring this monstrosity to the urge you to check your mail, because of these startups. floor. The new bill, if enacted, would the letter from the NFIB to Congress Through new, burdensome regulation deny immediate access to capital. If says: by the SEC, innovators and entre- enacted, it would say to innovators and These small businesses had nothing to do preneurs would be subject to reg- entrepreneurs: You are too small to with the Wall Street meltdown and should istering with the Commission for a 4- succeed, too small to survive. That is not be faced with onerous new and duplica- month review before they could get out far different from what this bill was tive regulations because of a problem they did not cause. Further, as the most recent and start soliciting money. This tying promised and promoted as doing—stop- NFIB Small Business Economic Trends sur- up of vital venture capital dollars ping too big to fail. Yes, I am going to vey shows, small businesses continue to needed for immediate use by small see in my communities and you are struggle with lost sales, and such regulations businesses would cripple their startup going to see in your communities too could make these problems worse—stifling efforts. This is not a measure that will small to survive. That is not where we any small business recovery. protect people from Wall Street. This should be going. In other words, they are saying: We is not a measure needed because ven- Killing small business startups and do this and small businesses are going ture capitalists and small startup en- jobs on Main Street is not the only un- to be even less likely to be able to cre- trepreneurs and innovators were caus- intended consequence of the Demo- ate jobs. We have already put too much ing the crisis. No, they are part of the crats’ current proposal that has come debt on the Federal books. We are solution of the jobless problems we to light. Caught up in the Democrats’ threatening to increase their taxes by have now. fervor to pass a bill—any bill—without a tremendous amount, and now we see This provision is an overreach by the careful consideration, are members of regulations that are going to interfere Federal Government, which would shut the U.S. military and their families. with their normal credit operations. down the job creation that Main Street Last week, I heard from active-duty That is a cause for concern.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2738 CONGRESSIONAL RECORD — SENATE April 28, 2010 This very high unemployment the can do for consumer protection is to re- utilities, and the agricultural industry stimulus bill didn’t touch, other than peal all the laws that require a stack of are used to manage risks associated getting more people working for the paper that high that you are supposed with their daily commercial operation, Federal Government. It was supposed to sign saying you have read it. Have from cost fluctuations in materials and to bring our unemployment rate down consumer protection with a very sim- commodities to foreign currencies used to 8 percent, but it is going to continue ple one- or two-page form. I have in international business. These end to fail and fail miserably if we stifle talked about that before. That is sim- users, these commodity hedgers, make the ability of small businesses to cre- ple consumer protection. Let people up less than 3 percent of the market. ate jobs. know, for people who are not ade- I don’t know of any farmer or any The only way to ensure that the quately informed on financial situa- farm agency or any utility who caused CFPB does not unintentionally hurt tions. the crisis on Wall Street by entering Main Street but still protects con- The one thing we found out when I into a long-term supply-and-purchase sumers is to narrow the scope and au- joined with the chairman of the Bank- contract. There is no reason to make thority with clear language outlining ing Committee, Senator DODD, in push- this be traded on an exchange when exactly who this new regulator will ing home foreclosure counseling, as we you have an ongoing partner; no reason regulate and what it will do. Instead of worked with agencies that were coun- to acquire collateral to be posted. The unlimited authority, this new regu- seling people who were losing their end users, as they are called, do so in lator should focus on the shadow bank- homes through foreclosure, is these order to plan for future pricing so they ing entities operating outside of the agencies were crying out and saying: can provide the least expensive goods regulatory framework and preying on We need financial counseling for these or services to the consumer as possible. vulnerable people. The banks and the people before they get into homes. Costly margin requirements for the end savings and loans that issue loans are That is the best way to avoid fore- users will be directly passed on to their regulated by government regulators. closure. Let us go back to that. It families. Guess who pays for that? Are the people who are making these sounds simple, but it happens to be the That is us. That is us. Because all large loans, such as home loans, regu- thing that would work. Americans will see their costs go up whenever they turn on their lights, put lated? In a lot of areas they are not. I doubt my Democratic colleagues in- food on their table, and use any form of CFPB could look at those. tend to pass a bill that will hurt fami- I proposed 2 years ago a mortgage lies every time they turn on the light transportation—whether it be cars, origination commission to make sure switch or try to heat their home, but trucks, buses, or airplanes. This is a problem that must be fixed. everybody originating mortgages was that is what this bill in its current For the purpose of my time on the form will do, once again, trying to go regulated by some appropriate State floor, I won’t go into each and every agency. Well, we haven’t done it. We for the easy one-size-fits-all approach problem I have heard about in the bill. also need to ensure that we are not em- to entities that it does not fit in any I have only been given minutes to powering, through this new govern- way. The $592 trillion over-the-counter speak rather than hours. But the cur- ment agency regulator, the same orga- derivatives market needs stronger rent concerns I have outlined are crit- nizations which pushed home owner- rules of transparency on the things ical. The unintended consequences on ship at any cost onto families who that are run through Wall Street. which I have shined a light must be could not afford to repay their loans. Some of these derivatives traded in stopped. Americans do not want an- This is one of the key problems we had. this market played a significant role in other massive flawed bill that will kill People who couldn’t afford homes were the recent crisis, through products more jobs, make it harder to get a told that they could get them with no such as credit default swaps. home or car loan, or make it more ex- downpayment, even if they had bad I have called these derivatives com- pensive to heat their homes. credit. If they didn’t have the money to puter game derivatives. They were so Yes, Americans are rightfully angry have a home, they were told they could complex. They were something some- and frustrated about the bad actors on have a home anyhow. These are the body thought up and ran through a Wall Street who caused the financial people who saw their American dream computer. You know what. Our regu- crisis, costing many Americans their turn into the American nightmare. lators fell down on the job. They didn’t jobs and even their homes. Americans These are the people whose houses were look at these derivatives. They were are rightfully angry and frustrated foreclosed, their families thrown out, not transparent. They were not regu- about the trillions of dollars the gov- their communities devastated, and ul- lated. Some of that is the fault of the ernment has committed to rescuing the timately the entire network of not regulators, who are now scrambling to financial industry when so many of only America’s financial system but come in and file suits. They are sup- them are still struggling to pay their the world’s financial system brought posed to regulate and make sure that bills. These are the people from whom down by this bad paper. these products that are complicated I am hearing. I agree with the majority Surely, my colleagues would not are fully transparent and related to re- of Americans who believe it is unfair want to vote for a bill that creates a ality and go to those who are at least for bad actors who caused this finan- new government bureaucracy without sophisticated. You can’t guarantee cial crisis to get bailed out with their knowing exactly what the bureaucracy that they win or lose, but at least tax dollars—with our tax dollars—when is empowered to do and if it will take know what they are; make sure they there is no bailout for families who lost on the real bad actors who got us into are clearly understood by everybody; their savings or jobs. I agree with the this mess. This CFPB is a perfect ex- get the rating agencies to judge them majority of Americans who are rightly ample of how the ‘‘one size fits all’’ of independently, not as captured entities skeptical of the Democrats’ bill and this hurried legislation will have unin- for the people who issue them and will the rush the majority wants to pass it tended consequences for those who did pay the rating agency if they get the in. It is no surprise that my constitu- not contribute to the financial melt- rating they want. ents are skeptical. After all, it is the down. Treating community banks like But there is an important distinction few bad actors on Wall Street who Goldman Sachs is a mistake, and one between the computer game deriva- caused the financial crisis who are now we cannot afford to make. tives or the very sophisticated deriva- cheerleading this so-called reform bill. If we are aware of these unintended tives that are traded on Wall Street. I was stunned when I read that the consequences now, why won’t we cor- You can make good financial argu- head of the investment bank Goldman rect them now? Why do my colleagues ments for them, so long as they are Sachs, Mr. Blankfein, said, ‘‘The big- want to bring these unintended con- traded on an exchange—the Wall Street gest beneficiary of reform is Wall sequences in the bill closer to being derivatives, so long as somebody is Street itself.’’ The head of Goldman codified into law on the Senate floor? If looking at them to make sure there is Sachs said that the biggest beneficiary you want to have some real consumer some integrity in them. But not all de- of this reform bill is Wall Street. Did protection, I purchased several homes, rivative contracts pose systemic risk. you hear that, everybody who has been as we have moved around recently, and As a matter of fact, commercial con- looking at Goldman Sachs? I also un- I can tell you that the best thing we tracts initiated by energy companies, derstand that Citigroup now supports

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2739 this measure. They are huge Wall prises. The cost of this crisis is some- on the floor through debate, through Street players who have had access to thing we all should not only recognize discussion, and through a vote, and the White House and the majority lead- but commit to preventing in the fu- let’s move on. We have a lot of work to ers of both Houses to push for all the ture. We also should calculate the cost do. The underlying bill Senator DODD good things this bill does for them. not just in terms of gross domestic has brought to the floor already incor- They are the ones who have been in product and how well executives on porates so many of these disparate there. They are the major contributors. Wall Street are doing, who are doing views, and I think in a very sensible Look where the money goes. If you pretty well, but how well the average way. want to say: OK, who is looking for family in this country is doing, and Let me, for the record, recall that contributions, look at that and see how well they will do in the future. We legislation like this has been pending what is in the bill. must consider how much in terms of for months and months and months. This bill clobbers Main Street and it their wealth has been diminished, if The Presiding Officer will recall—be- glances off of Wall Street. Instead of not lost, in rebuilding our economy. cause he participated with me in the helping Wall Street, I want to ensure a One of the major functions of any fi- first markup last November—Senator bill is passed that will protect Main nancial sector in any part of the world DODD brought a bill to the committee, Street. While Wall Street may be is to efficiently allocate capital to opened it up to amendment, and it was cheering this bill, I am here to ensure grow domestic product—not to reduce quite clear there was going to be no se- this bill represents Main Street con- it—to invest in productive enterprise rious discussion. In fact, our colleagues cerns. What I am hearing from Main and employ people. The financial sec- on the other side said: We need more Street, they are concerned, and it tor shouldn’t undercut companies or time. We want to participate with you. doesn’t address their concerns, it puts force them to lay off workers. All of I think it was done with great sin- more burdens on them. I urge you, I this, in the last few months, I think cerity. Senator DODD entertained those ask you to listen to the folks at home. has represented a failure in that basic proposals for months. From November We need to hold Wall Street account- function of making sure capital is ac- until a few weeks ago, we were working able for the havoc wreaked on Main cumulated and then efficiently allo- collaboratively and creatively to try to Street and enact reform to prevent an- cated to productive means. bridge our gaps and bring a bill to the So Wall Street, I think, has a lot to other financial crisis. This bill is too floor. regret about their role, and we have a large, too costly for consumers, and Well, finally—and somewhat in exac- lot to do to improve the situation, to will kill job creation at a time when erbation—Senator DODD concluded this ensure the regulatory structure is in working Americans need to be left to was leading nowhere, except to more place, and to set clear rules for the do what they do best; that is, succeed. delay, if not denial of the great prob- conduct of financial business that will My friends on the other side of the lem we face. So we had a committee protect families, protect consumers, aisle can hold vote after vote, but until markup. Again, it was an opportunity and protect the taxpayers. for our colleagues on the other side to this bill fixes the problems and I can be This is the third time our colleagues sure it is not just Goldman Sachs, on the other side have blocked such ef- bring forth their proposals, their ideas, Citigroup, and the rest of Wall Street forts to begin the discussion. We recog- in a markup in which we would be able that will benefit, I will continue to nize this is a complex topic, with many to consider their views, vote on them, force Democrats to listen to the con- different parts: credit rating agencies, and then move that bill to the floor. cerns of Main Street America. capital requirements, financial institu- But it was a perfunctory session. They I urge my colleagues to turn up the tions, derivatives. You can go on and had concluded that, no, they were not hearing and turn down the volume and on and on. So anyone who implies they quite yet ready to offer their proposals, listen to what the people in your have all the wisdom, I think, will find their ideas, and to engage in the busi- States are saying. themselves sadly mistaken. But we ness of legislation. I yield the floor and suggest the ab- have to get on with this bill because So now the bill is before us, months sence of a quorum. unless we bring the bill to the floor, we after we started this process, months The ACTING PRESIDENT pro tem- cannot begin to, in the open, talk after we have entertained and incor- pore. The clerk will call the roll. about those policy issues that people porated proposals that have been made The assistant editor of the Daily Di- can disagree on—people have different by our colleagues because they are gest proceeded to call the roll. approaches—and ultimately resolve very good proposals. It was Senator Mr. REED. I ask unanimous consent this and create a better regulatory CORKER and Senator WARNER—who that the order for the quorum call be structure and a stronger foundation for have done an outstanding job—who rescinded. our economy. structured the whole issue of resolu- The PRESIDING OFFICER (Mr. But in the last several days, this has tion, that there would be an upfront MERKLEY). Without objection, it is so been, again, ‘‘say no and the problem fund so that financial institutions—not ordered. might go away.’’ Well, if they continue taxpayers—would pay for the failure of Mr. REED. Mr. President, yesterday to say no, the problem will get worse. a financial institution. we and the nation heard from Goldman We are looking across the globe today Yet when that bill was brought to the Sachs executives indicating they had at a crisis in Europe because of Greek floor—or we attempted to do it—that no regrets about the financial crisis, a sovereign debt. It is spiraling. Already, provision, that bipartisan provision crisis that has left 8.5 million people Spanish debt has been downgraded. If was singled out for, shall we say, criti- without jobs and stripped billions of we think we are immune from these cism, if not ridicule, as a perpetual dollars of retirement savings from global currents, both good and bad, we bailout bill. That was a misrepresenta- working Americans. In fact, the Pew are mistaken. If we do not put in a tion of the bill and it, frankly, contra- Institute released a study that indi- stronger structure of regulation, the dicted the whole effort, the whole bi- cates the financial crisis and recession next crisis might not be starting on partisan effort to come up with some- have already cost U.S. households Wall Street, but the impact on Main thing that both sides could support. $100,000, on average, in lost wealth and Street could be the same, and it could But this bill incorporates so many income. That is a huge blow to the be just as devastating. different ideas and aspects that have families who are struggling to pay for We have to look forward. We have to been shared. In fact, it was interesting, their retirement, to pay for their chil- move on. The notion that we have all in the lead up to this floor consider- dren’s education, and provide a better the time in the world and we can sort ation, so many times on both sides of life for themselves and their children. of nonchalantly go about our busi- the aisle, people would say, routinely: We have seen, in the last five quar- ness—or in some cases, if it is a polit- well, we agree on 80 percent of the bill. ters, because of this financial crisis as- ical judgment that it is better to re- I think if you have 80 percent of the sociated with and connected with the sist—is not serving the people of this bill agreed to, at least conceptually, recession, $648 billion less in gross do- Nation well. you are probably ready to bring the bill mestic product than was projected ini- We recognize there are principle dif- up for debate and to vote. Yet again, tially—$648 billion of productive enter- ferences. Let’s resolve them, as we do the Republican side refuses to do that.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2740 CONGRESSIONAL RECORD — SENATE April 28, 2010 They are, I think, assuming, I guess, monitors local banks and large banks the real value. On a trading platform, they have a lot of time. But as you that was created in the Wilson admin- there is a market value and people can look around the globe, at the crises in istration. value it because basically if someone Europe, at the stock market falling All of them have a little different will buy it, that is the value. So we dramatically yesterday because of Eu- piece of the action, and all of them have to do that. This legislation goes a rope, I think we have to move aggres- have been routinely used in what is long way to doing that. sively to protect American families, termed regulatory arbitrage, to move With respect to credit rating agen- and that means getting the bill on the to the most favorable position for your cies, one of the great failures is the floor and voting for it. business, which may not be favorable credit rating agencies. As to all of This bill will make changes that are to the overall economy. Some of the these exotic mortgage products that urgently necessary. Again, the issue of big mortgage lenders that ultimately collapsed in value, most of them were too big to fail—through the extraor- collapsed started off being regulated by rated investment grade—AA, AAA, ac- dinary effort, painstaking effort, the the Office of the Comptroller of the cording to whatever the rating is—and hours of discussions by Senator WAR- Currency, and then they decided they yet they failed. Part of it was because NER and Senator CORKER, there was a would have a better deal at OTS. of the way credit rating agencies oper- proposal for resolution that effectively Frankly, if they had an opportunity—if ate. ends too big to fail. In fact, Sheila they were still with us—they would be Senator LEVIN conducted recently Bair, who is the Chairwoman of the looking elsewhere. Hit and run, I some very good hearings on this issue. FDIC and was appointed by President think, was probably the business plan. The familiarity between the invest- Bush, says it virtually eliminates the We have to stop that. ment bank that is bringing the product possibility of a taxpayer bailout. So This bill takes a strong step forward, to the street and the raters, the inter- that is part of it. Strengthening con- consolidating that supervision, by con- connectedness, the failure to have the sumer protection. There has been, I solidating the Office of the Comptroller appropriate checks on the models that think, an unfortunate generalization of the Currency and the Office of Thrift raters were using, an independent risk that consumer protections are bad for Supervision, by limiting the super- analysis within the rating agency that business. Frankly, we should have dis- vision of the Federal Reserve over a is going to look at these models not for covered in the last several months that countless number of small banks, and the benefit of who is paying for it but good consumer protections are very concentrating their efforts at the big for the propriety and correctness of the good for business. Many of those con- institutions, where their expertise and model. That is in the legislation. We have done something else too: We sumer laws—which would have pro- their focus should make a difference. tected people seeking mortgages— This is a huge improvement over have inserted language that would which were ignored or exempted would what the present system is. Yet our allow someone who has invested their have, I think, improved dramatically colleagues are not recognizing the need savings through a pension plan or other method to go to court and make the mortgage situation. It would have to improve and the need to move for- the case that they should find out what improved business. It would have made ward. We have been engaged, through happened within the rating agency that overriding issue of efficient allo- Senator LINCOLN and Senator DODD, with respect to the poorly rated invest- cation of capital much easier. with derivatives legislation, which, for But when you have very little protec- ment that caused them to lose their the first time, recognizes and regulates savings. Today, these cases are rou- tions for consumers, they are at the those derivatives. There was a great tinely dismissed before anyone can mercy of people who will exploit them debate here in the 1990s, and through question the rating agency. Our legis- for a quick buck. And that is what hap- that debate derivatives were left un- lation would allow them to get beyond pened. Mortgages were given to people regulated. Today we have to recognize the pleadings stage. But it would also who were not qualified. Why? Because we have to put them back under regu- give the rating agencies an affirmative no one was watching out for them. But latory supervision. defense. They would have to factually not only that, the individual issuing The legislation creates the steps, the check their models. They would have the mortgage did not have, as they say, architecture, which will go a long way to actually look at some of these mort- any skin in the game because they sim- to prevent some of the problems we gages. Frankly, this might be 20/20 ply sent it in to the big securitization have seen. It requires reporting all de- hindsight, but if someone drove out to process. Someone got a fee for rivative transactions to a data reposi- one of those counties in Florida where securitizing it. Someone wrapped it up tory which the regulators will have ac- there were all of these exotic mort- into a big mortgage-backed security. cess to so they can see firsthand in real gages but no one seemed to be living Someone else wrapped it up into a time what is happening out there. Is there and the communities were dete- collateralized debt obligation, which is there a big buildup in Greek debt? Are riorating, I think they would pretty a collection of securities. Then some- there huge positions in credit default quickly check their rating. That ap- one else wrapped that up into a syn- swaps on Greek bonds? They can quick- pears not to have been done. thetic collateralized debt obligation ly get a macro sense of what is hap- For the first time, hedge funds are and sold it off. Not a lot of efficient al- pening. regulated. They would have to register location of capital for productive Then, with limited exceptions, all de- with the SEC and be subject to reg- means, but a lot of fees for investment rivatives have to be cleared on a clear- istration, notifying the SEC of the size bankers, securitizers, and mortgage ing platform. That takes away the bi- of their pool and other basic informa- brokers. At the very beginning, good lateral nature of transactions. Some- tion. consumer protections would have been one says: I will sell you insurance on Well, we have had months of opportu- an effective way to mitigate some of this interest rate for a fee. You give me nities to share additional thoughts and that damage. They are in this bill. the fee, et cetera. That is bilateral. If work together to amend the bill in We are attempting to eliminate huge one of these parties is unable to carry committee, which was not done, but, gaps and loopholes in financial regula- out its obligations, the transaction more importantly, to begin today—in tion. Our regulatory scheme has grown fails. In a clearing platform, there is a fact, we should have begun last week— up over many years, in fact, through central party that assumes the risk of this issue of finally passing a Senate the life of this country. So we have a one of the parties failing. It is a bill that responds to the crisis we saw; national bank authority that was cre- mutualization, really, of risk, and it is that builds a stronger foundation of fi- ated in the 1860s. We have an Office of a step forward. nancial expansion; that protects con- Thrift Supervision that was created But we have to step even farther than sumers and taxpayers as well as leads many years later because of thrift in- that. We have to push as many of these to the increase in the wealth of fami- stitutions. We have the FDIC, which trades onto a trading platform, not lies, not to the dramatic decrease and was created in the 1930s by Franklin just clearing it and holding collateral, decline we have witnessed because of Roosevelt as a result of the Depression but actually pricing it. Because of the some of these forces at work today in and the need to insure deposits. We complexity of some of these products, the marketplace on Wall Street, which have the Federal Reserve System that unless there is a market, no one knows still have to be addressed.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2741 There will be parts of the proposals we need a situation in which capital is Mr. NELSON of Florida. Mr. Presi- that come up that will be an attempt dedicated to growth and to investment dent, we have now voted three times— to weaken some of these provisions, and productivity. once on Monday, the second time on particularly with respect to consumer The speculators will continue to reap Tuesday, and a third time today— protection. Again, I think it flows from billions of dollars of profits. I am sure merely trying to get to the Wall Street the false logic that if it is good for con- there are several clever people who are financial reform bill. Each time we sumers, it is bad for business. Actually, doing quite well over the demise of sov- have been blocked from being able to I always thought, in smalltown busi- ereign wealth in Greece, who have proceed because we can’t muster 60 ness, the customer is always right. You taken short positions on Greek bonds votes to cut off the debate to get to the believed the customer, made sure you and are making a lot of money. That is bill. provided value for your product, and not helping us, it is not helping the The Republican leadership remains made sure he or she would come back country, and indeed it is not helping united in opposition to bringing up the because they were happy and satisfied. our trading partners across the globe. bill, at a time in which we have just Apparently, that old-fashioned rule has That, unchecked, will continue. seen a display of extraordinarily in- been tossed out, but I think that old- The opaque and unregulated market tense, shall we say, arrogance on the fashioned rule has to be reestablished. that I just referred to in derivatives, a part of executives at a major Wall We have seen, as a way to deflect at- $600 trillion notional market. When Street firm in the way they conducted tention from the need to reform and you talk to people about clearing of de- themselves in front of Senator CARL the need to move this legislation, mis- rivatives, it is not billions, no; it is LEVIN’s investigation subcommittee representations about the bill. I men- trillions of dollars. That market is un- yesterday in a hearing. It is rather ex- tioned one: It is a bailout bill. Well, I regulated, and if it goes the wrong way traordinary that the Republican lead- think that has been dropped because it quickly, the consequences can be dev- ership is not letting us come up with was transparently misleading. Indeed, astating. We have seen that with the the bill so we can get it out here, de- this bailout mechanism was a bipar- mortgage crisis. bate it, and amend it. tisan product of two of our distin- So we have to move. We have to This Senator has a number of amend- ments that I would like to offer in guished colleagues, Senator WARNER move at every level, not just the big order to, as we say, perfect the Bank- and Senator CORKER. Now we are at the banks, but we have to provide appro- old standby: It is going to hurt busi- priate regulation for people in terms of ing Committee’s bill. But we can’t even ness. I will tell my colleagues what has the mortgage industry so those abuses get to that. I don’t know what the thinking of hurt business, and that is the behavior in mortgages will be corrected. We the Republican leadership is that they on Wall Street. have to go ahead and look at payday would do this, especially in light of the I can recall that several years ago lenders who are charging 900 percent fact that the American people want there was a study by the McKinsey interest, who are stripping people of some changes with the way invest- Company that said that if we did not their hard-won resources. We have to ments are handled on Wall Street. loosen further the already, I think, lax look at the credit card companies. We They want to see some movement. rules, we would lose all the securities have passed legislation, but we have to They want to see some action. So when business; all of Wall Street would go to look at what they are doing. If those we attempt to bring up a comprehen- England or other places; we would lose people—the payday lenders and the sive bill to reform Wall Street and the thousands of jobs. Guess what. They mortgage brokers—can continue to op- reckless practices that nearly brought have lost, unfortunately, thousands of erate with impunity, the bankers win. down the global economy, we are pre- jobs there. And it wasn’t because regu- Who loses? Well, consumers lose—pay- vented from having a free and open de- lation was too stringent; it was be- ing the excessive rates, seeing their bate on the bill and we are prevented cause it was too lax. homes devalued, all of that. from perfecting that bill by adopting Again, if there is any case to be made I think we have to stand up and start amendments. for what hurts business, it is irrational the work of legislating. The status quo I guess the Republican leadership’s allocation of capital; lax rules with re- is no longer affordable, and I think the alternative to this, since we can’t do it spect to consumers; a market driven notion that we will never see another out here in the normal legislative proc- not by value but by compensation, not crisis is undercut by looking around. If ess, is to do this in the backroom, be- by long-term growth but by short-term there are not today some steady hands hind closed doors, outside of the sun- profit. That is what has cost every at the tiller in Europe in terms of the shine. They want to have a deal cut be- family in America $100,000. European community and their finan- fore it comes to the floor in order to So if we move purposely and with the cial arrangements, the cascading effect avoid an open and free debate to reform input of our colleagues, which we have of Greece to Spain to Ireland, et cetera, the financial system. already accepted, we can establish a could be another problem we have to Why do they want to do this? Well, it framework where business will begin to deal with. seems to me common sense would tell grow again. So I reject the argument We have lots of work to do, and the us it is because they want to water that what we are doing will hurt busi- longer we delay, the more we are ne- down the bill. They want to water it ness. In fact, I think this uncertainty glecting the real needs of our constitu- down to the point where Wall Street— of whether we will have this reform or ents. I urge that on the next vote we where we are trying to tighten the that reform continues to, at least to a get down to business. screws in order to better regulate them degree, impede capital formation and Mr. President, I note the absence of a and prevent another near financial to impede investments in the country. quorum. meltdown such as we had—will sign off When there are clear rules of the road, The PRESIDING OFFICER. The on a final compromise, and that is why then the economy will again begin to clerk will call the roll. they are blocking the motion to pro- pick up, as it is beginning to pick up The assistant bill clerk proceeded to ceed to get to the bill. for other reasons. call the roll. Does this tactic sound familiar? It is If we don’t take up this bill, work on Mr. NELSON of Florida. Mr. Presi- the exact kind of backroom wheeling it, and pass good legislation, who wins? dent, I ask unanimous consent that the and dealing the American people have Well, I will tell my colleagues who order for the quorum call be rescinded. come to resent. The only difference be- wins. It is the big banks that have sur- The PRESIDING OFFICER (Mr. tween now and decades ago is that in vived this crisis today, that are report- FRANKEN). Without objection, it is so the old days those deals were cut in ing record profits. What are they mak- ordered. smoke-filled backrooms. At least now ing their money on? Giving loans to Mr. NELSON of Florida. Mr. Presi- there is not a lot of tobacco that is small business men and women across dent, I ask unanimous consent to speak being consumed in those backrooms. America? Investing in municipalities? on the motion to proceed for up to 30 But what is similar is that the special No. They are making huge profits in minutes. interests are still calling the shots. trading—betting, in some respects, on The PRESIDING OFFICER. Without So my plea is that we break this fili- how the economy is going to do. Well, objection, it is so ordered. buster. Let’s get a bill in front of the

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2742 CONGRESSIONAL RECORD — SENATE April 28, 2010 Senate so it can be in the full light and default, and there are three major cred- ess for registering rating agencies, and the glare of the headlights and the it rating agencies on Wall Street: it gave the SEC some new oversight cameras. Let’s get it in front of the There is Moody’s, there is Standard & powers over rating agencies. At the American people and then let’s let the Poor’s, and there is Fitch Ratings. For same time, however, this so-called re- legislative process work its will as we most of the last century, the rating form act prohibited the SEC from regu- amend the bill. agencies were paid by investors who lating ‘‘the substance of credit ratings Listen to some of the arguments the subscribed to their services. Why did or the procedures and methodologies Republican leadership, over and over they do that? Because it made sense. by which any rating agency determines and over, has used. They have said the Investors were the ones who were in- credit ratings.’’ It gutted the ability to Banking Committee bill guarantees fu- vesting their money and they were the double-check credit rating agencies. ture bailouts. Well, that is not true. It consumers of the ratings. They wanted Furthermore, to add insult to injury, might be a good sound bite, but it is the best information regarding the risk the act also clarified that it creates no simply untrue. The Banking Com- that they would have in that invest- private right of action. So if a party in- mittee bill puts an end to the promise ment. vested in a particular financial instru- of future bailouts. Well, unfortunately, in the 1970s, all ment because that credit rating was The Republican leadership attacks this changed and the business model high, and it turned out to be a dog and the $50 billion resolution fund created flipped. The rating agencies began they lost lots of money, they had no in the bill. This Senator is not con- charging the issuers of the bonds, not private right of action through the vinced we need that fund, and I am cer- the people who were seeking to know if courts. tainly not convinced it is going to sur- it was a good credit risk in order to in- No wonder the industry supported vive the debate on the floor, but we vest their money. It was reversed. It that legislation back in 2006. The bill, ought to have some honest debate was the very issuers of the credit, rath- written by the Republican leadership, about that particular provision. The er than the investors, who were charg- took away any power of Federal regu- fund is paid for in the Banking Com- ing for their services. So beginning in lators that they might have had to mittee bill directly from the coffers of the 1970s, rating agencies began to be crack down on the baseless credit rat- the largest banks. The fund acts, in the paid by the very same people who had ings that were fueling the boom in way it is devised by the Banking Com- a vested interest in receiving a high in- subprime lending. To make matters mittee, as a buffer to protect taxpayers vestment grade. worse, the bill made it clear it was not so that if there is another breakup, an- Think about that. The very issuers of empowering the private sector to hold other potential meltdown, the fund is the bonds who wanted people to invest the credit rating agencies liable for there—already funded by the banks—so their money in these bonds needed a their ratings. the taxpayers don’t have to go in and high credit rating on that bond in The bill we hope one day, at some do the rescue operation such as we order to get people to invest. If they hour, to get to the floor so we can start have done in the past. working on it does some important Under the Banking Committee bill, could be rated at AAA, as opposed to B, things to improve credit rating agen- the fund can only be used to liquidate people were much more willing to put cies. It requires these agencies to dis- a financial institution, to break it up. their money into this instrument. Well, talk about a conflict of inter- close their methodologies and their In short, it is a funeral tax. It is a fu- est. Now the issuers of the bonds, who ratings track record. Wouldn’t you neral tax on the largest banks, not the have an interest in a high AAA rating, think you would want to know their taxpayers. The $50 billion fund in that Banking Committee bill only gets go out and hire the services of the cred- track record if you are going to invest tapped to pay for their funeral ex- it rating agencies. a lot of money based on their triple-A Did you ever hear the old adage, ‘‘He penses. rating? It requires agencies to consider So here we are. The American people who pays the piper calls the tune’’? information in their ratings that hear the Republican leadership talking Well, those who were going to pay the comes from outside sources. But when about all this, and it is a red herring. piper were going to call what that tune it comes to addressing the fundamental The American people want action, and was. Do you think if you are paying the conflict of interest in the credit rating here we are stuck in procedural grid- bill to the credit rating agency that agency business model, this bill com- lock. Guess who the only real winners you have a better chance of getting a ing out on the Senate floor falls short. are. As we sit here, trying to break a AAA rating than a lower rating? Of It would require the rating agencies filibuster on Monday, again Tuesday, course you do. That is a walking con- to separate ratings activities from and again today, shortly after noon, flict of interest. their sales and marketing activities, the only winners are the Wall Street How could we allow this unavoidable and that is like saying my left arm has bankers who have mastered the art of conflict of interest to exist and allow it no idea what my right arm is doing. In using the broken financial regulatory to exist since the 1970s is unfathomable reality, it is the brain in your head system to almost bring down the coun- and unbelievable. Yet that is the way that controls both the right arm and try’s finances by deceiving investors it is. Credit rating agencies failed mis- the left arm, and no one is proposing to and, ultimately, in order to save our erably in the runup to the financial cri- chop off the head. So we have to deal system, milking the American tax- sis, and it sure looks like—looking with this conflict of interest, and we payer. backward—they put profits ahead of are going to. Here is what we are going One of the major beneficiaries of the professionalism. They failed to detect to do. current system is the credit rating the severe deterioration in lending We are going to do this with the help agencies. This is a subject matter the standards that began in the late 1990s. of the Presiding Officer of the Senate. Senator from Minnesota—who now sits They failed to review all available in- We are going to offer an amendment in the Presiding Officer’s chair—has formation about the loans on which the that would establish a clearinghouse to some familiarity with and on which he securities they were rating were based. randomly assign rating assignments will be offering an amendment. This The conflict of interest in their busi- with rating issuers. As simple as that, Senator is going to join him in that ness model gave the rating agencies an we can end the conflict of interest in amendment. Credit rating agencies— enormous incentive to overlook prob- the credit rating industry if, randomly, something that normally is down in lems in mortgage-backed security mar- it is going to be assigned among com- the weeds because it is so com- kets. panies that rate issuers of financial in- plicated—are private companies that In 2006, Congress passed the Credit struments. assess the creditworthiness of various Rating Agency Reform Act. I put that Second, this Senator is going to offer types of debt instruments, such as in quotes, the Credit Rating Agency an amendment to require the rating bonds and mortgage-backed securities, ‘‘Reform’’ Act. The bill was written in agencies to monitor, to review, and to as well as the issuers—rating the the Senate by the Republican leader- update their credit ratings after the issuers of those instruments. ship, and it had the full sign-off of the initial issuance of their credit rating so They typically assign a letter grade credit rating industry. Here is what the it does not become stale. They are that is designed to convey the risk of bill did—2006. It standardized the proc- going to have to continue to look at it,

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2743 to review it, to update it, and to pub- Are we pleased about the executive That is the issue. The groups that are lish it. The rating agency should not be compensation of some of these folks opposing Dodd’s bill are the National able to walk away from a rating after who have nearly caused the financial Federation of Independent Businesses, it has been issued. It is going to be collapse of our country? When taxpayer the small businesses of our country; fresh. The rating agencies ought to money, through the TARP system, was the U.S. Chamber of Commerce; Ameri- conduct continued surveillance of bailing out these institutions—whether cans for Tax Reform; the Americans for these securities and update them along it was directly, such as into AIG, or di- Limited Government; Freedom Works; the line. rectly into a place such as Bank of the National Taxpayer Union; the The credit rating agency reform is America, or whether it was indirectly United States Automobile Association. just one of the many areas the Senate coming through these credit default We have had auto dealers in our of- needs to debate. But as long as the Re- swaps that were getting paid off 100 fices all week who are very concerned publican leadership continues to pre- cents on the dollar that I just de- about not being able to get credit from vent the bill from coming to the floor, scribed, through the conduit of AIG— the little banks and the ability to fi- this broken system remains in place. what was happening to the compensa- nance the buying of automobiles. It is The Wall Street bankers win and the tion of those executives? Were they the Military Officers Association that American public loses. still getting bonuses? Were they still has concerns with this bill; the Na- Let me give some other examples. getting high salaries? Were they hav- tional Council of Farmer Cooperatives; Remember the name ‘‘AIG’’? It was ing to tighten up their belts when, in the Farm Credit Council; the National this Goliath organization that started fact, their financial institutions were Association of Home Builders; the Fer- out as an insurance company. It be- kept alive by the American taxpayer tilizer Institute. came this huge financial institution. bailing them out? This is a bill that is going to affect The core product of this company was No, we didn’t see that tightening of our economy. So many of the groups I its insurance. It was deemed too big to the belt. We did not see any evidence of have named are the groups that are fail at the time of the near meltdown humility. We didn’t see any evidence of providing jobs in our country that we of our financial system. This was back appreciation. But, instead, we saw ar- want to encourage to create more jobs, in the fall of 2008. not discourage in a time such as this. It was deemed that when we passed rogance displayed through huge bo- So, yes, Republicans have been trying the Troubled Assets Relief Program, nuses that were being given with a to have input on this bill. There has TARP, that money had to go into this total disregard for the American peo- not been any Republican input at all. If big, Goliath organization, all the way ple’s sacrifice, of putting their hard- we have learned one thing as Repub- to the tune of about $80 billion of tax- earned taxpayer dollars in to save licans, it is that we know what it is payer money, as I last recall. It may be those financial institutions. like to be completely shut out. We a lot more than that. Mr. President, I think you will see Guess what this did. They had al- once we get out here on the floor that were completely shut out of the health ready issued, in effect, an insurance we are, in fact, going to get a number care debate. We had amendments of- policy that had a fancy name. It was of amendments, including the amend- fered day after day after day. Oh, the called a credit default swap. It was an ment of this Senator, on a limitation— process worked. Not one Republican insurance policy against some of the not on executive compensation but a amendment was passed. Not one. Nei- companies if their investments went limitation on the ability to deduct ther was there one Republican vote in bad. That is not bad. But what hap- from their tax liability excessive exec- the House or Senate on the health care pened was, when the American tax- utive compensation, and a tie of that bill. So we have had that experience. payer dollars went in to save AIG, AIG excessive executive compensation to, So this time, because we see the dan- took those taxpayer dollars and turned in fact, performance for that company gers in the Dodd bill to our economy around and paid off those insurance that pays their salary. We are going to and the small businesses and the small policies, 100 cents on the dollar. Is that see that. Sooner or later, we, in fact, banks, we are saying we are not going fair, when folks like some of these are going to get to the bill, even to let this bill go to the floor if we have folks who have been in the news re- though the Republican leadership con- the power to stop it until there is Re- cently, such as Goldman Sachs, got tinues to try to obstruct and delay be- publican input. paid off to the tune of $13 billion in- cause sooner or later the American The biggest failure in the bill is that stead of going in and negotiating a people are going to have their way. it still allows taxpayer bailouts. That lower payoff since it was taxpayer They clearly want Wall Street finan- is wrong. That is why Republicans are money? We ought to change that, and I cial reform. voting not to bring it up yet, because think we will if we can ever get to the I yield the floor. we are trying to change the language bill, if the Republican leadership will The PRESIDING OFFICER. The Sen- in the bill before it comes to the floor ever allow us to get to the bill. ator from Texas. to assure that the taxpayers will not Let’s take another example. What Mrs. HUTCHISON. Mr. President, I have the responsibility to bail out big about the same insurance policies rise today to speak on the financial financial institutions that took gam- called credit default swaps? Let’s say regulatory reform, and particularly the bles with other peoples’ money. That is the same set of circumstances with effect of the Dodd proposal that came the holdup. AIG occurred, but AIG had not been out of the Banking Committee on This bill is not a bill that is favored bailed out by the American taxpayer which I sit, that we have been voting by community and little banks. It is and instead had gone into bankruptcy. on cloture on for this whole week. favored by the big banks. It is favored AIG, in this hypothetical example, had I heard Senators from the other side by Goldman Sachs and Citigroup. So a lot of creditors that would get in line talk about delay; the Republicans are let’s be clear about that. As we con- under the bankruptcy law to get what- delaying this bill. I have heard them sider the bill before us, the Dodd bill, it ever they could. But, oh, no; these in- for the last week say it is because we should focus on the gaps and holes in surance policies called credit default are siding with Wall Street, Repub- regulations that led to our nation’s fi- swaps would be exempt from the bank- licans are siding with Wall Street. nancial crisis from which we have not ruptcy laws. They would get paid off in That is odd to me because it is the yet recovered, because there are still full first instead of having to get in Wall Street big banks that are for this millions of people who are unemployed line with all the other creditors under bill. It is Citigroup, it is Goldman because of the financial crisis. the bankruptcy law. Sachs that are in support of this bill. We must end too big to fail. We must That is not right. This Senator is They are publicly supporting the bill. end taxpayer bailouts. That is not done going to have an amendment to the It is the community banks that are in this bill, and that is why Repub- Banking Committee’s bill to correct flooding my office and the offices of my licans are saying: Stop this bill from that. There is no reason those insur- colleagues. It is the community banks coming to the floor until it does at ance policies should be at the head of that had nothing to do with the finan- least that one major thing; that is, to the line of everybody else in the case of cial meltdown that are hugely con- be clear, that we stop too big to fail in bankruptcy. cerned with this bill. this country.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2744 CONGRESSIONAL RECORD — SENATE April 28, 2010 Putting the big banks in one level of can invest and create jobs that will lift As an example, in 2009 alone, the FTC operation and scrutiny and one level of our Nation into a recovery. and the States, working together close- access to the Fed, which this bill does, Do not talk to me about recovery ly, brought more than 200 cases against the Fed keeps its scrutiny of every when it is still a jobless—that is an firms that peddled phony mortgage bank company holding company of $50 oxymoron—a jobless recovery. There modification and foreclosure rescue billion or more in assets. That is it. All are millions of people out there unem- scams. Rather than focusing on too big of the other banks in our system ployed. Is that a recovery? No. ‘‘Job- to fail or the practices of large banks, throughout our country are not al- less recovery’’ should be out of our the Dodd bill overreaches and threat- lowed access to the Federal Reserve. lexicon. That is wrong. If we are going ens the authority of the FTC to protect They cannot be members of the Federal to build jobs in this country, it is going consumers of nonbank financial prod- Reserve under the Dodd bill. That is to be through small businesses. The big ucts, as it has for many years. the major reason I am not supporting businesses are not hiring. Do you know The FTC wrote a letter to me as this bill. why the stock market is up right now? ranking member of Commerce, and our In fact, I have an amendment, if this It is because the big businesses are not chairman, Jay Rockefeller, and asked bill comes to the floor, I am going to hiring. They have lowered their costs. for assistance with preserving their offer that says the law today will pre- Yes, they are more profitable because consumer protection and enforcement vail, that is, that community banks they are working with fewer people. I authority. I am working now with may join the Fed, the State-chartered do not considering that a success. I Chairman ROCKEFELLER. He is very fo- banks may join the Fed, because if you think we have to save our community cused on this. I can tell you he is very do not do that, you are going to give banks. This bill before us is going to focused, because I talked to him on the the impression that the $50-billion-and- hurt them. That is why we are holding telephone yesterday several times, in- above banks are in one category, that it up. cluding at 8 o’clock last night, because they are going to be taxpayer pro- I wish I could say that is the only he is so concerned that we are not tected. That means they are going to part of the bill that hurts community going to fix this bill to make sure the be able to give lower rates in competi- banks, but there is another part. It is FTC is not shut off from what it al- tion with the community banks be- the Consumer Financial Protection Bu- ready does, what it already has in cause it will be perceived that the risk reau that is created in the Dodd bill place, with a new overlay of a new is less. that will add a new layer of regulations agency that does not have the experi- That is not what we ought to be and a new agency issuing new regula- ence, that does not now exist, and doing. So I am going to offer an amend- tions that will affect those same com- would need startup time and more tax- ment to the Dodd bill which would munity banks that are already fully payer dollars. eliminate that part of the Dodd bill regulated. Instead, Senator ROCKEFELLER will that takes away Fed access to the com- We have seen the effect of poor and have an amendment, and I will cospon- munity banks. The other reason it is predatory lending standards in this fi- sor it, that will keep the FTC exactly important is that we have regional Fed nancial meltdown. We need reform in where it is now with the enforcement banks. The reason it was set up that that area. Americans should under- actions against companies that offer way is so that throughout the country stand all the terms of a transaction, nonbank financial products. I hope the Federal Reserve would be able to and they need to be creditworthy. Senator DODD will work with us on make monetary policy with input, with Subprime loans to people who are not that amendment. In fact, I am going to input from Kansas City, and Dallas, creditworthy are not healthy for our expand it even beyond that and say: We and Houston, and San Antonio, and Los economy. We have learned that for should put all of the nonbank regula- Angeles, and San Francisco, and San sure. We do not need a new bureauc- tion into the FTC instead of this new Diego, and Minnesota, and Wisconsin. racy housed in the Fed but without Fed agency that will be another bureauc- That was the concept of the regional oversight, which is sort of a non sequi- racy that will be confusing in many in- Fed bank. Let me give you an example. tur. But that is the way it is in this stances to the banks which are already The Federal Reserve Bank of Dallas is bill, which I hope we can change. Com- regulated. headed by Richard Fisher, who came to munity banks are already regulated. I hope we can do something in this see me last week. He said: I would go They have all of the regulations, either bill that is right in the regulatory from regulating about $70 billion in State bank regulation or by the FDIC area, and particularly the area that bank assets, with all the community insuring them, requiring reserves. contributed to the financial meltdown, bank members that we have in the Dal- They are doing their job. such as the nonbank financial institu- las Regional Fed, to 3. The new agency would remove safety tions, not the banks. The community If the Fed is going to listen in Wash- and soundness from consumer protec- banks did not have a part in this finan- ington, when they are making the tion and have unlimited and unchecked cial meltdown. I hope we can fix this monetary policy, to the Kansas City rule-writing authority. The legislation bill when it comes to the floor. Fed chief who completely agrees that does include an exemption which would It appears that the chairman of the we need to keep access for State and allow a community bank with less than Banking Committee and the ranking community banks to the Fed, for their $10 billion in assets to retain examina- Republican, Senator DODD and Senator information, as well as the level play- tion from its prudential regulators, or SHELBY, have come to an agreement on ing field. So that will be my amend- the regulators they have now. the language that will tighten and ment. But the exemption is false because close the loophole in too big to fail. We Community banks did not cause the community banks will still be subject are going to hear exactly what that financial meltdown. In fact, they pro- to the new agency’s new rules, pricing, language is in a few minutes in our Re- vided lending and depository services and prohibitions, all of which will only publican caucus. That will be very good to families and small businesses across serve to curtail consumer credit op- for us to be able to then come to the Texas and across our country. Even in tions. floor, if the Democrats will allow Re- the hard times they were mostly the Enhancing consumer protections publicans to have some input into this ones that helped small business get should instead focus on leveraging the bill on the other issues, such as Federal their inventory loans and the help they experience of agencies that are already Trade Commission jurisdiction, the needed for liquidity. in place, such as the Federal Trade new consumer agency that I think is A lot of people I talked to in my Commission. I am the ranking Repub- overreach and overkill, and most cer- home State, when I visit the small lican on the Commerce Committee. I tainly to keep community banks with- businesses and the community, felt as see the work the FTC is doing on a out a competitive disadvantage against though nobody was lending. The big daily basis to stop unfair and deceptive the big banks. I want a level playing banks certainly were not. So the com- practices that prey on consumers of fi- field because I don’t want the commu- munity banks are continuing to make nancial products and services offered nity banks to suffer in this country. credit available, much more than the by nonbank entities such as mortgage They are the lifeblood of the heartland, big banks, so businesses and consumers loan services. and they are in peril with this bill.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2745 I am somewhat frustrated at hearing the RECORD at the end of my remarks through SEC filings and special inspec- some of the speeches in the last week some letters to which I will refer. tors general reports. that have railed against Republicans The PRESIDING OFFICER. Without The GM commercial also did not for holding up this bill. Sometimes objection, it is so ordered. mention that GM could have used the ‘‘no’’ is the right answer because if we (See exhibit 1.) TARP escrow funds to repay a $2.5 bil- bring a bill to the floor with no ability Mr. GRASSLEY. Mr. President, last lion 9 percent loan it received from its to amend it and we don’t fix too big to Thursday, I wrote Secretary Geithner union health plan as part of the bank- fail, then once again, like the health asking why the Treasury Department ruptcy process. The union loan runs care reform bill that was jammed allowed General Motors to use TARP until 2017. The TARP loan was at 7 per- through the Senate and the House with money from a Treasury escrow account cent and ran until 2015. What sort of no Republican support and no input, we to repay its multibillion-dollar TARP money manager would advise you to will be doing it to our economy and our taxpayer loan. This afternoon, I re- financial institutions. I hope we will pay off a lower interest loan before a ceived a response from Treasury. I higher interest loan? GM and Treasury not do that again. would like to say a few words about the I hope that we will have a bill we can have still not explained that, and I reply and the questions that remain have asked the TARP watchdog, Spe- all agree closes the loopholes on too unanswered. big to fail so that taxpayers will not be cial Inspector Neil Barofsky, to get to Last week, Treasury and GM an- the bottom of it. And to make matters on the hook again for big financial in- nounced with press releases and na- stitutions that bet with other people’s worse, Treasury has admitted that it tionwide TV commercials that GM had let GM take an additional 6.6 billion of money on fancy derivatives and all of repaid its TARP loans ‘‘in full, with in- the hedges that don’t make sense; that TARP dollars out of the escrow fund terest, ahead of schedule, because more last week with no strings attached. we protect the hedges that do make customers are buying [GM vehicles].’’ sense, that are used by the end user to That money, too, could have been used However, the hype does not match to repay the high interest union loan. keep a budget in place rather than the reality. Taxpayers have not been passing big price hikes on to consumers repaid in full—far from it. Many bil- There are reports that GM also ap- in oil and commodities. That is what lions of TARP dollars remain invested plied to the Department of Energy for derivatives are supposed to be for, and by Treasury in GM, and much of it will a $10 billion 5 percent loan to retool its we don’t need to stop that. We just never be repaid. The Congressional plants to meet fuel economy standards. need to know what is in those big de- Budget Office estimates that taxpayers GM seems to be using government rivatives so that people will have the will lose around $30 billion on GM. money to pay back government money, information and so will the regulators. and then asking for more government We can do this job right. This should In addition, the payment that oc- curred last week did not come from money at a lower interest rate. It not be political. Democrats and Repub- sounds like a plan to refinance GM’s licans aren’t going to get an advantage revenue GM earned by selling cars, de- spite what was claimed. Instead, Treas- government debt with more taxpayer for passing a financial regulation bill money—not pay it back. because most people are not going to ury allowed GM to use funds in a sepa- know how it will affect them until it is rate escrow account to pay its TARP GM had to ask permission from passed and in place. Why don’t we do it debt. The Treasury Department’s re- Treasury to use the taxpayers’ stock right? Let’s bring the bill to the floor sponse to me today makes a point of investment to pay off the taxpayers’ with some key parts that are agreed to, saying that GM ‘‘owns’’ the money in loan. Treasury’s response to my letter and then let’s start having amend- the escrow account, as if that somehow says that ‘‘Treasury retained approval ments. I am not saying every Repub- justifies all the hoopla about GM’s so- rights over GM’s use of funds from the lican amendment should pass, but I called ‘‘repayment.’’ escrow account in order to protect the think it should have a fair hearing. Well, let’s look at how GM came to taxpayer.’’ Well, why didn’t they pro- And I think some of them should pass ‘‘own’’ those escrow funds in the first tect the taxpayer then? if this bill is going to pass the test of place. The escrow funds were part of Why would Treasury allow GM to use a true bipartisan bill that will have the TARP money Treasury paid for GM its equity investment to pay off the more than just a partisan vote out of stock coming out of the bankruptcy. loan when it means giving up the legal the Senate. The money was supposed to be used by right to 7 percent rate of return for the I thank the Chair for listening—not GM for expenses, as Treasury concedes. taxpayers in exchange for essentially that it was his choice, but I appreciate Treasury had the power to approve or nothing? Since the taxpayer has an eq- it anyway. disapprove GM’s use of the money to uity stake in the company, it’s true I hope we will do the right thing on repay the TARP taxpayer loan. Treas- that future growth of GM could theo- this bill. It will affect our financial ury approved, and GM pretended it was retically make taxpayers whole, but communities, every community in paying the loan back from revenue be- taxpayers already had that equity in- Texas, and especially small businesses cause business had improved. terest before this latest transaction and community banks that are going Business may have improved, but and didn’t get any more equity as a re- to be the reason we recover, if we do that is not how they paid the loan. sult of the transaction. this right. Taking TARP money out of one ac- I suggest the absence of a quorum. count to pay back TARP loans in an- Another key question is: Why would The PRESIDING OFFICER. The other account is not at all the same as GM orchestrate a major media cam- clerk will call the roll. paying off a loan with earnings, as paign to make the public think this all The assistant editor of the Daily Di- GM’s TV commercials imply they have represents some big accomplishment gest proceeded to call the roll. done. That is why I called it ‘‘an elabo- by GM when the truth is that the tax- Mr. GRASSLEY. I ask unanimous rate TARP money shuffle’’ and nothing payers are still on the hook for billions consent that the order for the quorum in Treasury’s reply today changes that. that we may never recover? call be rescinded. The public would know nothing Using the taxpayers’ stock invest- The PRESIDING OFFICER. Without about the TARP escrow money being ment in GM to reduce its debt to the objection, it is so ordered. the source of the supposed repayment taxpayers is not the same as repaying Mr. GRASSLEY. I ask unanimous from simply watching GM’s TV com- that debt from money actually earned consent to speak for 12 minutes as in mercials or reading Treasury’s press by selling cars. Treasury’s reply today morning business. release. Treasury’s letter today says does not explain why it approved this The PRESIDING OFFICER. Without all these details are public knowledge transaction. Maybe it is a step in the objection, it is so ordered. and nothing new. Well, that may be right direction, maybe not. But instead GENERAL MOTORS AND TARP technically correct, but it wasn’t clear- of misleading the American people, we Mr. GRASSLEY. Mr. President, I ask ly communicated that way to the aver- should be clear and up front about unanimous consent to have printed in age citizen. Most Americans don’t pore what happened here.

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EXHIBIT 1 The bottom line seems to be that the Treasury and Canadian loans, if it did not U.S. SENATE, TARP loans were ‘‘repaid’’ with other TARP otherwise need them for expenses. Under COMMITTEE ON FINANCE, funds in a Treasury escrow account. The GM’s loan agreement with Treasury, any Washington, DC, April 22, 2010. TARP loans were not repaid from money GM funds in the escrow account on June 30, 2010 Hon. TIMOTHY F. GEITHNER, is earning selling cars, as GM and the Ad- had to be used to repay the Treasury and Ca- Secretary, U.S. Department of the Treasury, ministration have claimed in their speeches, nadian loans. We have highlighted the repay- Washington, DC. press releases and television commercials. ment requirement in our monthly Section DEAR SECRETARY GEITHNER: General Mo- When these criticisms were put to GM’s Vice 105(a) reports to Congress. During a meeting tors (GM) yesterday announced that it re- Chairman Stephen Girsky in a television last fall, we also informed the staff of the paid its TARP loans. I am concerned, how- interview yesterday, he admitted that the Special Inspector General of TARP ever, that this announcement is not what it criticisms were valid: (SIGTARP), Neil Barofsky, that we expected seems. In fact, it appears to be nothing more Question: Are you just paying the govern- GM to use these funds to repay these loans. than an elaborate TARP money shuffle. ment back with government money? In fact, according to the SIGTARP Report on On Tuesday of this week, Mr. Neil Mr. Girsky: Well listen, that is in effect the Use of Funds (released on December 10, Barofsky, the Special Inspector General for true, but a year ago nobody thought we’d be 2009), ‘‘GM officials stated that it intends to TARP, testified before the Senate Finance able to pay this back. seek release of additional escrow funds to Committee. During his testimony Mr. Mr. Girsky then said that GM originally repay its outstanding $6.7 billion loan to Barofsky addressed GM’s recent debt repay- planned to pay the loan over the next five Treasury and $1.3 billion loan to the Cana- ment activity, and stated that the funds GM years. So the question is why—other than a dian Government.’’ is using to repay its TARP debt are not com- desire to justify excluding GM from the ad- After the full repayment of the Treasury ing from GM earnings. Instead, GM seems to ministration’s TARP tax proposal—would loan, approximately $6.6 billion remained in be using TARP funds from an escrow account Treasury and GM reduce GM’s TARP debt GM’s escrow account. These funds became at Treasury to make the debt repayments. with TARP equity and then mischaracterize unrestricted on April 20 and available for The most recent quarterly report from the it as a repayment from earnings? Accord- GM’s general use. Office of the Special Inspector General for ingly, please explain: In addition, it is not correct that the tim- TARP says ‘‘The source of funds for these Your department’s justification for allow- ing of the repayment was motivated by con- quarterly [debt] payments will be other ing GM to use funds from the TARP escrow current Senate hearings. In fact, GM’s Board TARP funds currently held in an escrow ac- account to repay TARP loans, of Directors approved the loan repayment at count.’’ See, Office of the Special Inspector The amount of funds remaining in the its monthly meeting on April 13, 2010. General for TARP, Quarterly Report to Con- TARP escrow account at Treasury that may As is widely known, Treasury continues to gress dated April 20, 2010, page 115. be released to GM, and hold $2.1 billion in preferred stock and 60.8% Furthermore, Exhibit 99.1 of the Form 8K The date that you anticipate that the re- of the GM’s common equity that it received filed by GM with the SEC on November 16, maining funds in escrow will be released to in the restructuring in July 2009. Treasury 2009, seems to confirm that the source of GM. will begin selling equity once GM makes an funds for GM’s debt repayments was a multi- Thank you in advance for your coopera- initial public offering. billion dollar escrow account at Treasury— tion. Please provide the requested informa- Thank you again for your attention to this not from earnings. In the 8K filing GM ac- tion by April 30, 2010. Should you have any important matter. knowledged: questions regarding the contents of this let- Sincerely, ter please do not hesitate to contact Jason Of the $42.6 billion in cash and marketable HERBERT M. ALLISON, Jr., securities available to GM as of September, Foster. All formal correspondence should be Assistant Secretary for Financial Stability. 30, 2009, $17.4 billion came from an escrow ac- sent electronically in PDF format to [email protected]. count with Treasury, RESERVE NOTICE $6.7 billion of the escrow account available Sincerely, to GM was allocable to the repayment of CHARLES E. GRASSLEY, U.S. DEPARTMENT OF THE TREASURY, loans to Treasury, Ranking Member. 1500 Pennsylvania Avenue, NW., $5.6 billion in cash would remain in the Washington, DC. Treasury escrow account following the re- DEPARTMENT OF THE TREASURY, Attention: [XXXXX] payment by GM of their loans, and Washington, DC, April 27, 2010. Telecopy: [XXXXX] Upon repaying Treasury, any balance of es- Hon. CHARLES E. GRASSLEY, Email: [XXXXX] crow funds would be released to GM. U.S. Senate, Washington, DC. with a copy to: Therefore, it is unclear how GM and the Dear SENATOR GRASSLEY: Thank you for The U.S. Department of the Treasury, Administration could have accurately an- your letter dated April 22, 2010 to the Sec- 1500 Pennsylvania Avenue, NW., nounced yesterday that GM repaid its TARP retary regarding General Motors’ (GM) re- Washington, DC. loans in any meaningful way. In reality, it payment of its loan from the Department of looks like GM merely used one source of the Treasury. He asked me to respond on his Attention: Cash Management Officer TARP funds to repay another. The taxpayers behalf. Telephone (for borrowing requests): are still on the hook, and whether TARP Your letter states that the repayment of [XXXXX] funds are ultimately recovered depends en- the loan was made with funds from ‘‘an es- Email: [XXXXX] tirely on the government’s ability to sell GM crow account at Treasury’’ and that it con- Reference is made to that certain stock in the future. Treasury has merely ex- stituted a ‘‘debt-for-equity’’ swap. These $7,072,488,605 Second Amended and Restated changed a legal right to repayment for an statements are not accurate. Secured Credit Agreement dated as of Au- uncertain hope of sharing in the future On April 20, GM repaid the Treasury loan gust 12, 2009, as amended, supplemented or growth of GM. A debt-for-equity swap is not with cash in an escrow account that it owns. modified from time to time (the ‘‘Credit a repayment. The escrow account was created last summer Agreement’’), among General Motors Holdings I am also troubled by the timing of this in connection with the restructuring of GM. LLC, a Delaware limited liability company latest maneuver. According to Mr. Barofsky, The money used to fund the escrow account (the ‘‘Borrower’’), the Guarantors named Treasury had supervisory authority over came from a portion of the proceeds of a loan therein and The United States Department GM’s use of these TARP escrow funds. Since made by both the Treasury and the Canadian of the Treasury (the ‘‘Lender’’). Terms de- GM’s exit from bankruptcy court, Treasury government. The escrowed funds were ex- fined in the Credit Agreement and not other- had approved the use of the escrow funds for pected to be used for extraordinary expenses, wise defined herein are used herein with the costs such as GM’s obligations to its parts and a portion of the funds were so used. meanings so defined. supplier Delphi. See, Office of the Special In- Treasury retained approval rights over GM’s In connection with the repayment in full of spector General for TARP, Additional In- use of fluids from the escrow account in the outstanding Loans and other Obligations sight on Use of Troubled Asset Relief Pro- order to protect the taxpayer, but the cash on April 20, 2010 (the ‘‘Repayment Date’’), the gram Fund (SIGTARP–10–004), dated Decem- was still the property of GM. Borrower hereby requests that a Reserve ber 10, 2009, at page 6. According to the GM In making its April 20 loan repayment, GM Disbursement in an amount equal to the en- 8K, GM had planned to use the TARP funds determined that it did not need to retain the tire amount of the Reserve Funds (the ‘‘Dis- in escrow to pay back the TARP loans on a escrowed funds for expenses. The fact that bursement’’) be made as described below. quarterly basis beginning in the fourth quar- GM made that determination and repaid the $4,684,964,350.73 of the proceeds of the Dis- ter of 2009. But following the April 20, 2010, remaining $4.7 billion to the U.S. govern- bursement shall be used to pay the entire hearing of the Senate Finance Committee, ment now is good news for the company, our outstanding amount of the Loans and other where Treasury’s decision to exempt GM investment, and the American people. Con- Obligations, including all accrued and un- from the bank TARP excise tax was ques- sistent with Treasury’s goal of recovering paid interest on the Loans, on the Repay- tioned and GM’s refusal to testify was noted, funds for the taxpayer and exiting TARP in- ment Date. it is odd that GM suddenly drew down on the vestments as soon as practicable, we ap- In accordance with Section 4.2(e) of the TARP escrow and accelerated the repayment proved GM’s loan repayment. Credit Agreement, the balance of the pro- of the remaining balance of GM’s out- It has long been public knowledge that GM ceeds of the Disbursement shall be retained standing TARP loans. would use these specific funds to repay the by the Borrower.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2747 The Borrower hereby requests that the pro- This bill we have is the product of of all, it updates the Federal Reserve’s ceeds of the Disbursement be made available months of bipartisan negotiations. For authority to allow systemwide support to it as follows: the first time ever, this bill would cre- but no longer allows it to prop up an A. On the Repayment Date, $4,684,964,350.73 ate a nine-member financial oversight individual firm. Second, it requires to be wired to: council chaired by the Treasury Sec- large, complex financial companies to Bank: [XXXXX] ABA No: [XXXXX] retary and made up of Federal finan- submit plans for their rapid and or- Beneficiary: [XXXXX] cial regulators. This council would derly shutdown should they start to go Account No.: [XXXXX] serve as an early warning system for under. These plans will help regulators B. On the Repayment Date or on any date systemic risk, something that was understand the structure of the compa- thereafter, as shall be determined by the clearly lacking 3 years ago when these nies they oversee and serve as a road- Borrower in its sole discretion, all remaining institutions that people were adver- map for shutting them down if the amount of the Disbursement or a portion tising as gold and their investments as company fails. thereof, as shall be directed by the Borrower Under this plan, most large financial in its sole discretion, are to be wired to: gold went tumbling down onto the peo- ple of this country. companies are expected to be resolved Bank: [XXXXX] ABA No: [XXXXX] The domino effect of deeply inter- through the bankruptcy process. Bank- Beneficiary: [XXXXX] connected financial companies, such as ruptcy allows those who invest in a Account No.: [XXXXX] insurance giant AIG, didn’t just create firm to better access their risks, and it General Motors Holdings LLC economic ripples, they sent a tsunami allows the possibility that a company By: [XXXXX] surging through the entire economy. will emerge again in some way intact. Dated: April 19, 2010. This financial oversight council will be If we have a situation where a firm I suggest the absence of a quorum. charged with scanning the system for would not go into bankruptcy and its The PRESIDING OFFICER. The systemic risks and putting speed failure could bring down the whole sys- clerk will call the roll. bumps in place to ensure we never see tem, we make the process of resolution The assistant editor of the Daily Di- a crisis such as this one again. This as hard as we can on that firm. We gest proceeded to call the roll. council will, for the first time, bring start by shutting down the business Ms. KLOBUCHAR. Mr. President, I the regulators together to form a pic- and throwing out those who caused the ask unanimous consent that the order ture of the entire system, so one regu- mess. This is a very different route for the quorum call be rescinded. lator will not be dealing with one prob- than we took in this crisis where we The PRESIDING OFFICER. Without lem while another is dealing with an- propped up firms and kept them alive objection, it is so ordered. other with no information being because of the risk it was going to pose Ms. KLOBUCHAR. Mr. President, I shared. This way there will be one for the entire financial system. We rise to discuss the very important bill place where they can look at the entire don’t want to be in that position again. we are very hopeful we can move on financial system and look for those The taxpayers don’t want to be in that today to start the debate on Wall warning signs of problems. position again. Street reform. I understand there may This bill will also stand at the inter- If a firm chooses our resolution, the be an agreement to move forward with section and make firms slow down by Treasury, the FDIC, and the Federal this bill. We don’t know that yet. If it increasing the costs of being large and Reserve must first all agree to put a is true that we have an agreement to complex. The most interconnected company into the orderly liquidation start the debate on this bill, then it is firms will be required to hold larger process. A panel of three bankruptcy very fitting that I go through why this levels of capital to minimize their risk judges must then convene and agree bill is so important. If we don’t have an to the system if the investments go within 24 hours that a company is in- agreement, then it is even more fitting bad. All we are asking for, so taxpayers solvent. At that point, the FDIC would because we know the American people don’t have to bail out these firms, is step in and resolve the firm through got severely hurt by the crisis on Wall that they have significant resources this orderly process and in a way that Street, by the fall of many of our fi- and enough resources on hand in case doesn’t harm the overall system. The nancial institutions, and they were not they face troubled times again. If firms cost of resolution would be paid for not the ones who were supposed to be hurt. are going to create risk to the system, by the taxpayer but by a $50 billion So we need to fix this so it doesn’t hap- they need to take some responsibility. fund built up over time—and this is pen again. We clearly saw in this crisis what a key—paid for by the industry, paid for Nearly 3 years after the financial sys- lack of capital can do, how it can bring by the industry, not by the taxpayers. tem began to melt down, America con- a firm to the brink, and the downward Finally, I wish to talk about a key tinues to suffer the effects of the worst spiral it can cause when they are un- portion of the bill that came out of the economic crisis since the Great Depres- able to attract new investors. Agriculture Committee, a committee sion. Millions of Americans have lost As much as we would like, we simply on which I serve, led by Chairman LIN- their jobs, homes, and their retirement can’t predict how a future crisis might COLN. The portion of that bill I wish to savings. Although some key indicators unfold. I believe one of the most impor- talk about is the focus on transparency are beginning to move in the right di- tant lessons we can take from this cri- and accountability to the over-the- rection, many families, such as those sis is that the American taxpayer counter derivatives market. we know in Minnesota, are still strug- should never again be left on the hook Bringing transparency and account- gling, and the economic damage is very for the unconscionable bets of Wall ability to the over-the-counter deriva- slow to heal in their towns. Street. The American taxpayers’ tives market is essential to our eco- On Wall Street, however, it seems to money is not meant to be used to play nomic system and the American tax- be back to business as usual. games within a casino, where you can payer and is as important as any other Last year, Wall Street’s largest firms throw their money around and then piece of reform we are going to be de- handed out record bonuses totaling maybe some of it will come back and bating. Reckless trading of unregulated nearly $146 billion, an 18-percent in- some of it will not. We have to make over-the-counter derivatives played a crease from 2008. Meanwhile, overall sure this doesn’t happen again. Pre- significant role in triggering the finan- U.S. per capita income declined 2.6 per- venting American taxpayers from cial crisis in the fall of 2008. AIG, using cent. So it is little surprise that Wall being forced to bail out financial firms a type of derivative known as a credit Street financiers are not enthusiastic starts with strengthening big financial default swap, took enormous risks in about reforms that could change the firms to better withstand stress, look- guaranteeing at least $400 billion worth way they do business. In fact, some of ing out for systemic risk, and putting a of other companies’ loans, including them claim Wall Street just has a few price on activities that pose a risk to those of Lehman Brothers. When the fi- potholes that need fixing. Well, I think the financial system. nancial crisis hit and AIG was unable they need more than that. What Wall In the event that a firm was to fail, to make good on its commitments, Street needs is more stop signs and key this bill creates a safe way to liquidate Treasury and the Federal Reserve were intersections and some good traffic failed financial firms that will not forced to step in to accept untold, un- cops. leave the taxpayer on the hook. First known risk to the financial system. In

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2748 CONGRESSIONAL RECORD — SENATE April 28, 2010 the end, the government put up $180 American taxpayers’ money. So we motions be in order prior to the offer- billion of taxpayer money to save AIG have to remember that as we go for- ing of the Dodd-Lincoln substitute from collapse. ward. amendment; and that once the sub- I bring up AIG to point out the dan- But the most important thing is to stitute amendment is offered, it be gers of an unregulated, over-the- make sure we put a traffic cop at those considered read. counter derivatives market. Deriva- intersections, that we put some stop The PRESIDING OFFICER. Is there tives, when used properly and backed signs at those intersections, that Wall objection? by sufficient collateral, play a crucial Street isn’t allowed to drive down in Without objection, it is so ordered. role in our financial and economic sys- their Ferraris while the government is The Republican leader. tems. We think about airlines that following behind in a Model T Ford. Mr. MCCONNELL. Mr. President, I want to hedge their risk with the price Enacting these reforms is not just want to take a few moments here to of oil. You think about agribusinesses. important for our financial markets, it thank the distinguished Senator from All over this country that goes on. But is important for ordinary Americans. Alabama who has been our leader on this is a whole different issue we are While very few people outside of those the Banking Committee and an expert talking about. When irresponsible fi- involved in these markets understand on this very complex subject of finan- nancial institutions are allowed to or see the impact of derivatives on cial regulation, for his steadfast effort make unconscionable bets, hidden from their daily lives, their misuse contrib- in bringing us to where we are today. the view of the markets and its regu- uted to a recession that left millions As Senate Republicans plus Senator lators, the stability of our entire finan- without jobs, businesses shuttered, and BEN NELSON of Nebraska have dem- cial system is threatened. trillions in household savings lost. The onstrated over the last few days, we be- lieved the bill we started with was not Right now, the over-the-counter mar- legislation we passed out of the Agri- insignificant but that it needed to be ket counts its transactions in the hun- culture Committee and that Chairman improved. Senator SHELBY was given dreds of trillions of dollars, but under DODD has worked to incorporate into the opportunity, as a result of us stay- the current system, there are almost this bill will bring these dark markets ing together, to be empowered to im- no requirements that the most basic into the light of day and ensure they prove the bill that had previously come terms of these contracts or even their will never again threaten the stability out of the Banking Committee on a existence be disclosed to regulators or of this financial system. straight party-line vote. So I want to the public. Think about it: Trillions of It is very important that we bring take the opportunity to thank all of dollars changing hands and no one even this before the Senate, that we begin my Republican colleagues, plus Sen- knows what is happening. debate on this bill. That is why, as we ator NELSON of Nebraska, in giving us The goal of the bill we have today is look at the rumors swirling around the opportunity to improve the under- to finally bring transparency and ac- that, in fact, there is a deal and that countability to these unregulated mar- lying bill. we are going to be able to at least I want to thank the Senator from kets. For the first time, under this bill, begin the debate on whether to pro- all trades will be required to be re- Alabama for his efforts in that regard. ceed—not debate on the bill—we are I think we have a better starting place ported to the regulators and to the still working out the details. We think public. With this information, regu- than we would have had earlier and we this is a good bill. We look forward to look forward to, as the majority leader lators will be able to effectively mon- working with our colleagues on it, but indicated, an open amendment process itor risks to the system and prevent we can’t even get to ‘‘go,’’ we can’t and plenty of opportunities to treat market manipulation and abuse. even get to ‘‘start’’ if we can’t get this this like the serious comprehensive bill Transparency will also benefit those bill on the floor to debate. it is. We have many amendments we in- who use derivatives to hedge risks, as So we are looking forward to dis- tend to offer. Our members will be pre- they will be better equipped to evalu- cussing this bill, debating for the pared to accept reasonable and short ate the market, as price information American public and getting it done. time agreements so we can get these will finally be made public. By requir- The Americans who lost their jobs, amendments up and voted on, and ing mandatory clearing and trading for their homes and their savings and are hopefully have an opportunity to make standardized derivatives, this bill will scared every day that it is going to further improvements in the bill. greatly reduce the ability of risk to happen again because of the reckless- I know Senator SHELBY may want to build up to a point that could, once ness of Wall Street deserve no less. make a few observations. again, burst and threaten the financial Thank you. I yield the floor. I note The PRESIDING OFFICER. The ma- stability of our financial system. the absence of a quorum. jority leader. I have often said that when Wall The PRESIDING OFFICER. The Mr. REID. I will be happy to yield to Street gets a cold, Main Street gets clerk will call the roll. my friend from Alabama and my friend pneumonia. We can’t let this happen The assistant bill clerk proceeded to from Connecticut, but I want to say a again. In this bill, careful consider- call the roll. few words first. I too have great re- ation has been made to ensure that Mr. REID. Mr. President, I ask unan- spect for my friend Senator SHELBY. He commercial entities—this was the imous consent the order for the and I were neighbors in the Longworth work done in our Agriculture Com- quorum call be rescinded. Building many years ago and we have mittee—to make sure that commercial The PRESIDING OFFICER (Mr. maintained that friendship since. entities that hedge solely to mitigate BEGICH). Without objection, it is so or- There are times when we disagree on their own commercial risk are not dered. issues but our relationship is one of brought under requirements meant to Mr. REID. Mr. President, I now ask friendship. address the failures of a market they unanimous consent the motion to pro- CHRIS DODD has had an extremely dif- had no hand in. We think about all the ceed to S. 3217 be agreed to; and that ficult year. He has had to legislate on people who didn’t have a hand in this once the bill is reported tonight, the some of the most difficult issues to problem that got affected. We think Senate then proceed to a period of come before this body, and he has been even about our small banks in the morning business, with Senators per- the one who has been the chairman of State of Minnesota. They didn’t engage mitted to speak therein for up to 10 that committee and had to do it. In ad- in this kind of risky behavior. I think minutes each, and on Thursday, April dition to that, his dear friend, his best about them sometimes standing there 29, following the recognition of the friend, Senator Kennedy, was ill. He with their briefcases in the heartland, leaders or their designees, the Senate had to take over that committee and with those credit default risks swirling then resume consideration of S. 3217; do his Banking Committee. It has been around their head that they never used that after the reporting of the bill and a tremendously difficult year for him. or engaged in, saying: Toto, we are not recognition of Senators DODD and He has done it with mastery of the in Kansas anymore. Because, as we SHELBY to make opening statements on Senate rules and with the ability to ar- know, some banks in this country had the bill, Senator LINCOLN then be rec- ticulate his position as well as anyone a brain. Some banks didn’t go to Oz ognized to speak for up to 20 minutes; who has ever served in the Senate. I ad- and think they could go back with the that on Thursday, no amendments or mire and appreciate him so very much.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2749 We also have a new chairman, Sen- American people we will listen to what We will now be on this bill, which the ator LINCOLN, on the Ag Committee. they say. American people want us to be on. This She has done a very good job. She took There will be no more votes tonight. is an important issue. As I pointed out it over a couple of months ago but The PRESIDING OFFICER. The Re- this morning, we had the headlines, the stepped into that committee and has publican leader. hearings here yesterday involving done a remarkably good job on an ex- Mr. MCCONNELL. Mr. President, let mortgage deals and the other headlines tremely difficult issue dealing with de- me say again before turning to Senator about Greece and its debt. Its bonds rivatives and things such as that. I ad- SHELBY how much we appreciate his were sinking, causing economic prob- mire her work and I appreciate so leadership on this and how much we lems in Europe and potentially here. much the ability of Senator DODD and appreciate all of our Republican col- These problems are huge. As Senator her to work together. Their staffs leagues, plus Senator NELSON, giving SHELBY has said and I have said over worked all weekend, trying to put to- him the ability to improve the bill that and over, this is a complex area of law gether this substitute amendment we came out of committee. Much has in- we are talking about and it has to be will offer tomorrow. I am very grateful deed changed since Monday. I thank gotten right. We have had very good for their leadership in the conference, Senator SHELBY for his leadership. I conversations on a number of issues, the Democratic conference. They do also commend Senator DODD for the but on this over many weeks, going good work all the time. spirit in which those discussions were back, obviously, and clearly we both We have so much to do in the weeks commenced. share, as everyone does in this Cham- ahead in this work period. But this is I see the Senator from Alabama on ber, our determination that we never the issue we are going to go on. The the floor. again have institutions that become American people waited long enough I yield the floor. too big to fail where there is that im- for their leaders to get to work clean- The PRESIDING OFFICER. The Sen- plicit guarantee that the Federal Gov- ing up Wall Street—first on Monday, ator from Alabama. ernment will bail them out. then on Tuesday, and twice more Mr. SHELBY. I will be brief. I am satisfied that our bill does that today. We didn’t have to vote today. First, I thank the Republican leader already, but I appreciate that there are That is a decision that Senator MCCON- Senator MCCONNELL for his kind words. others who would like to see it tighter, NELL and I made—that there was no Also I thank my friend, the majority who think we can do more to make it need to have a vote. There was an leader, Senator REID, for helping bring better and more workable. I am anx- agreement to move to the bill and that us where we are today. ious to hear them. is what we have been trying to do all But more than that, I commend Sen- I know our colleague from California, week. ator DODD, the chairman of the Bank- BARBARA BOXER, has some ideas on this Senate Democrats have asked one ing Committee, with whom I have as well that she has raised and I men- thing, that we be allowed to debate, we worked for years and years. We have tioned those with my friend from Ala- simply be allowed to do our job as leg- worked exceedingly closely on many bama. He has raised issues with me islators and legislate. We believe in issues dealing with the Banking Com- that I like as well, and he can help us this bill to crack down on Wall Street, mittee. What we are bringing to the get there. As he rightly points out, we to protect families’ savings and sen- floor now is something very complex, have not sealed anything but we have iors’ pensions. We never asked the Sen- very far reaching. The idea that some- had great conversations, as two people ate to unanimously or blindly approve thing should be too big to fail is very of good will can have, that I think will a single policy. We never sought to important to me. Nothing should be allow us to get there. send this bill directly from the com- too big to fail, in my judgment, in this We are going to have a very busy mittee room to the President’s desk. country. couple of weeks coming up now. There The only thing we fought for is the op- I commend Senator DODD. In our ne- are a lot of Members who have very portunity to have that conversation. gotiations, they haven’t been all loss— strong feelings about this bill. My job— After months of bipartisan meetings we have reached some assurances in our job—will be to see to it people have and negotiations, it is time to move that. He and his staff have made some a chance to offer their amendments, to this debate from the sidelines to the recommendations that we like. We debate them, to go through that proc- playing field, to the Senate floor, made some they liked. I think we have ess. which is where it belongs. Senate Re- made real progress. I know we have to I may sound pretty old-fashioned in publicans have finally agreed to let us seal it all, but I think Senator DODD is this regard. I pointed out last night, I begin this debate. I appreciate that and working in good faith on that. first got involved in this Chamber as a I hope it foreshadows more cooperation But we have the derivatives title and young person sitting here in the same to come. I know Republicans have their we have the consumer products deal. outfits as these young people in their own suggestions and amendments for We have not been able to resolve those blue suits, as a page, watching Lyndon improving this bill. So do Democrats. yet. I hope we will on the floor of the Johnson sitting in that chair where Now that we will be able to begin that Senate. We have moved to a new forum you are, Mr. President, and watching process, the American people will fi- and it is going to be a very important Mike Mansfield in that chair over here nally have the opportunity to watch debate in the weeks ahead here because and Everett Dirkson in that chair. and weigh those ideas. Nothing has this is very important to the American I remember sitting there and listen- changed from our end since Monday. people. ing to the debates on civil rights in the The only thing that is different is the The PRESIDING OFFICER. The Sen- early 1960s, when this Chamber, in dif- date. We have always wanted to start ator from Connecticut. ficult moments, worked together to the debate on Wall Street reform with Mr. DODD. Let me begin by thanking achieve great results for our country. I an open, bipartisan amendment proc- the majority leader for his work. I have great reverence for this institu- ess. thank the minority leader as well. This tion and I want to see it work as our I will offer the first amendment com- has been a bit acrimonious over the Founders intended, where you have a bining the best parts of the Banking last 10 days or so as we tried to get to great, important debate—and this is Committee and Agriculture Commit- the floor with this bill. one—that we work together as Amer- tee’s bills. That will be what we will Of course I thank RICHARD SHELBY. ican citizens chosen by our respective work from. Obstruction has wasted He and I, as he points out, have been States to represent them in this great enough of the American people’s time. working together over the last about 37 hall. That is what I intend to do as the Now let’s do our work and do our ut- months during my stewardship of the manager of this bill, to make sure that most to make the American people Banking Committee that I inherited in each and every one of my colleagues— proud of our efforts. Let’s work for January of 2007. whether they sit on this side of the them, the American people. Let them I noted the other day there are some aisle or that side of the aisle—are all in know Wall Street needs reforming. 42 measures we brought out of our com- this Chamber together to try to im- Democrats and Republicans all over mittee and 37 of them have become the prove the quality of life for the people America believe it, so let’s show the law of the land. This is a good result. who have been so badly hurt, homes

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We have all seen the tre- to the majority leader, to act with fair- speak for up to 10 minutes. mendous cost of Wall Street’s excesses. ness, to work together to try to resolve The Senator from Washington. In my home State of Washington, it matters so we can have a good outcome f has cost us over 150,000 jobs. It has cost on this bill. WALL STREET REFORM small businesses access to credit they Obviously we cannot predict that. I need to grow and hire. It has cost know there are some who want to Mrs. MURRAY. Mr. President, I workers their retirement accounts make this a great fight—that this is a thank the Senators from Connecticut they were counting on to carry them great, great issue, maybe, for the day and Alabama for all their hard work on through their golden years. It has cost or the week you do it—who wins, who this issue. I am delighted that after students their college savings that loses. That is a great story. But this is three votes and 3 full days of pres- would help launch their careers. It has not an athletic contest we are involved suring those on the other side of the cost homeowners the value of their in. It is a decision to try to put our aisle to allow us to at least begin de- most important asset, as neighbor- country on a far more sound and secure bating this critical bill, it appears they hoods have been decimated by fore- footing than it is today. I look forward have relented. Finally, it appears they closures. It has cost our school- to the opportunity to work, as I have, are willing to listen to not only what teachers, our police officers, and our Democrats have been saying about the with Senator SHELBY. We are good communities. friends. I admire him immensely. He importance of a strong new reform bill It has cost young people such as was chairman of this committee before for Wall Street but what the American David Corrado of Seattle, whose moth- er, since he was very young, would I was. He understands the job of being people have been saying. take $400 out of her paycheck and put a chairman. What we have been saying is it is it toward David’s education fund. It I am determined to get this job right. time to hold Wall Street accountable. was a long-term, smart investment she I encourage our colleagues who have It is time to pass strong reforms that knew would pay off for David’s future. ideas and amendments to come forward cannot be ignored or sidestepped. It is When the financial crisis occurred, he and share them with us. We are going time to end bailouts and give Wall lost one-third of his college fund, to set up shop over the weekend to Street the responsibility of cleaning up their own mess. It is time credit card $10,000. make sure we are there. So we have It has also cost older people such as ideas to consider, accept, maybe mod- statements are in plain English, in loan terms that are spelled out. It is Edward Diaz, who is also from Wash- ify, make it work right. If that spirit ington State. He was not only laid off comes forward we can do a good job time for Wall Street to come out of the shadows and into the light of day. It is from his job of 21 years due to the re- here and we can leave this Chamber at cession, he also lost $100,000 from his the end of this Congress, knowing we time for negotiations to come out of the back room and on to the Senate 401(k) account. On the verge of retire- confronted a serious problem and ment, Edward tells me he now scours stepped up to the best of our ability to floor. It is time to put an end to ob- struction and begin working for Amer- the classifieds every day searching for try to solve it for the people we seek to any way to get back to work. represent. ican families. I am glad we are finally now on this In the days ahead, as we debate this Again, I thank the majority leader bill, those are the people we have to re- and the staff and others for their work. bill. For most American families, this debate is not complex; it is simple. It is member constantly. We have to keep I thank Senator SHELBY in his work. them in mind as we work to protect This conversation will continue. We not about derivatives or credit default swaps. It is about fundamental fair- against this happening ever again; the have a lot of work to do. It has been people who, through no fault of their very worthwhile and very productive ness. It is a debate about when they walk into a bank to sign a mortgage or own, paid the price for the risks and ir- over these last number of weeks and we responsible behavior of Wall Street. intend to keep it in that form. I thank apply for a credit card or start a retire- ment plan, are the rules on their side? There are people in my State and the minority leader as well and the Re- across the country who scrimped and publican Conference. I know it must Are they with the big banks or Wall Street? saved and made right decisions and have been probably a healthy, good, vi- were left holding the bag. brant conversation for the last hour For far too long, the financial rules of the road have not favored the Amer- Now is not the time for half meas- and a half in there. But for those who ures. The American people are looking question whether we can do this, I ican people. Instead, they favored big banks and credit card companies and to us now for real reform and to put want this institution to get back again progress before politics. We have to put to the idea of listening to each other, Wall Street. For too long they have abused those rules. Whether it was people before Wall Street. debating the issues, taking our votes I yield the floor and suggest the ab- and putting together the best product gambling with the money in our pen- sion funds or making bets they could sence of a quorum. we can. The PRESIDING OFFICER. The never cover or peddling mortgages to I yield the floor. clerk will call the roll. people they knew could never pay f The assistant editor of the Daily Di- them, Wall Street made expensive gest proceeded to call the roll. RESTORING AMERICAN FINANCIAL choices that came at the expense of Mrs. BOXER. Mr. President, I ask STABILITY ACT OF 2010 working families. That is exactly the unanimous consent that the order for The PRESIDING OFFICER. Under reason we have all fought so hard to the quorum call be rescinded. the previous order, the motion to pro- move forward now with a strong bill. The PRESIDING OFFICER. Without ceed to S. 3217 is agreed to. It is why we have refused to back objection, it is so ordered. The clerk will report the bill. down or sit by while it was watered Mrs. BOXER. Mr. President, what is The bill clerk read as follows: down, and it is why we were ready to the order? stay up all night or vote to move for- The PRESIDING OFFICER. The Sen- A bill (S. 3217) to promote the financial ward with this bill all week long. It is stability of the United States by improving ate is in morning business, and Sen- accountability and transparency in the fi- why we have insisted on a bill that in- ators are able to speak for up to 10 nancial system, to end ‘‘too big to fail,’’ to cludes the strongest protection for con- minutes each. protect the American taxpayer by ending sumers ever enacted, an end to tax- Mrs. BOXER. Mr. President, I ask bailouts, to protect consumers from abusive payer bailouts, and tools to give indi- unanimous consent that I be allowed to

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2751 speak for as much time as I may con- Sweeping Plan To Fight Crisis As Tur- thing when energy prices went through sume. moil Worsens In Credit Markets.’’ And the roof. The PRESIDING OFFICER. Without here is one: ‘‘Full Of Doubts, U.S. In 2007 and in the first part of 2008, objection, it is so ordered. Shoppers Cut Spending.’’ the house of cards began to collapse, Mrs. BOXER. Mr. President, thank I read these headlines to my col- because backing up these new complex you very much. leagues to bring back those dark, dark, instruments Wall Street created were f dark days and why we are here today these exotic loans that consumers trying to make sure it never happens could never repay unless housing prices FINANCIAL REGULATORY REFORM again. If we don’t learn from history, continued to soar to unrealistic levels. Mrs. BOXER. Mr. President, this is we are doomed to repeat it, and we So they created these instruments that good news we just received that our have learned and we are ready to make were backed by these mortgages that Republican colleagues have decided to sure this never happens again. were doomed to fail unless the econ- allow us to proceed to the debate on Those dark times came because we omy continued to shoot like a star the Wall Street reform bill. I was, allowed Wall Street to engage in un- straight up and the housing market frankly, confused as to why they were regulated and unsupervised gambling. I went up. The housing bubble began to objecting. But in any event, without have to say I am an economics major. deflate, and think about all of these de- going through that, I am very pleased That goes back quite a bit of time. rivatives and all of these exotic securi- they have backed down in terms of Many years ago, before any of these ties that were based on housing. Mort- their objection because we want to get kinds of exotic instruments were cre- gage lenders and financial institutions to this bill. ated, I worked on Wall Street as a began to fail; first Countrywide, then Many of us have ways we feel it can stockbroker. I can tell my colleagues Bear Stearns. The Federal Reserve had be made stronger. I bet there will be that every time the President of the to intervene behind the scenes to try some amendments to make it weaker. United States would sneeze and the and keep credit flowing. Remember, in And that is what the process is all market went down a few points, I wor- a capitalist society, in our economy, about. The most important thing for ried. I can just imagine how I would we have to have credit flowing. Credit, the American people to know tonight have felt if I would have had clients in that is what the small businesses need. is that an issue of critical importance this kind of situation where there was That is what governments need, over- is moving forward in the Senate. no control. night credit. The State of California I think it is important for us to re- A shadow banking system grew up couldn’t even get overnight credit. The member the real reasons as to why we that fueled an unsustainable housing worst crisis hit in September 2008—the are taking up this bill. Even though it bubble. From 2001 to 2007, the issuance worst since the 1929 Great Depression. is painful to review the dark times of of toxic private mortgage-backed secu- Listen to this: Over just 3 days, Sep- 2008, when our economy and the world rities increased by over 400 percent. tember 13, 14, and 15, three major fi- economy were really on the brink, I be- These securities were rated by credit nancial institutions failed—Lehman, lieve it is important for us to do that rating agencies—the credit rating AIG, and Merrill Lynch. Oh, my God, review. agencies that were supposed to be tell- the shock in the country. Regulators I asked my staff to put together some ers of the truth. They are supposed to were unprepared. They had no warning. of the headlines from those days. We say to the consumer, uh-oh—I sound Panic spread from this Wall Street de- are going to go through a couple of like my grandchild who says uh-oh— bacle as banks lost confidence in the charts and I will read a few of them, that is what they are supposed to say: solvency of the financial system and because we need to remember what it Don’t buy those securities because they refused to lend. Credit was frozen. was like in those dark moments in our they are not good. But these credit Consumers started to withdraw their history. agencies, rating agencies such as money from failing money market Here is a picture of a Wall Street Moody’s and Standard & Poor’s, frank- funds, and some of them found out that trader and he is under a headline that ly, acted as though they were in the they weren’t insured, the money mar- says ‘‘Black Monday.’’ It was at a mo- pockets of the issuers who paid them. kets. We had to actually create insur- ment when the first bailout happened. In other words, they gave a good an- ance. It says, ‘‘Bailout Fails, Stock Drop swer. If you wanted to issue securi- The stock market dropped 25 percent Most In History.’’ Then we look at this ties—I don’t care whether it is Gold- in September alone, part of a larger 50- one: ‘‘Where Do We Go From Here?’’ man or anybody else—you go to these percent drop from 2008 to 2009. Trillions ‘‘NASDAQ: The Biggest Fall Since fellows, you pay them, and they tell of dollars in pensions and savings Dot.com Crash.’’ ‘‘Dow Down 778.’’ you something good. What went wealth were lost. Without the tools to ‘‘Time’’ magazine, ‘‘Wall Street’s Lat- wrong? That is a disaster. Where is the handle the crisis, the Bush administra- est Downfall: Madoff Charged With fiduciary responsibility in any of these tion was forced to approach us for di- Fraud.’’ ‘‘Feds’ Rescue Plan: The Bail- relationships? rect taxpayer assistance. I will never out To End All Bailouts.’’ ‘‘Jobs, The unregulated over-the-counter de- forget the day when the Republican Wages, Nowhere Near Rock Bottom rivatives market also grew by over 400 Treasury Secretary Hank Paulson Yet.’’ ‘‘Credit Crunch Continues As percent to a value greater than the en- looked me in the eye, along with all of Lending Rates Climb.’’ ‘‘U.S. Consumer tire U.S. economy. The unregulated my colleagues, and said capitalism was Sentiment Decreases To A 28–Year over-the-counter derivatives market on the brink of collapse. I will tell my Low.’’ ‘‘U.S. Loses 533,000 Jobs In The grew by over 400 percent to a value colleagues, I asked him a number of Biggest Drop Since 1974.’’ greater than the entire United States questions that day about the role that That is one chart, and I have one economy. Wall Street institutions crit- credit default swaps played in this, and other, just to remind us where we were. ical to our economy purposely created derivatives, and to be totally candid, San Jose Mercury News: ‘‘Foreclosure complex paper instruments that had no he didn’t have an answer. He was so Wave: San Jose Fights To Protect real value. In these hearings Senator concerned about staving off this col- Neighborhoods.’’ ‘‘Carnage Continues: LEVIN is holding, we see what happened lapse. 524,000 Jobs Lost.’’ ‘‘Wall Street Em- when one company—Goldman—knew— It was too late. It was too late to ployees Set To Get $145 billion.’’ That and I can’t use the words they used be- stop Wall Street’s crisis from impact- is in bonuses during all of this. ‘‘Econ- cause it would be improper on the ing the rest of our economy. Business omy In Crisis,’’ ‘‘Foreclosure,’’ ‘‘Leh- floor—they knew a product they were lending plummeted. I know the Pre- man Files For Bankruptcy,’’ ‘‘Merrill selling was just plain junk and they siding Officer knows that small busi- Sold,’’ ‘‘AIG Seeks Cash.’’ We know all sold it to their customers, to their cli- nesses have created 64 percent of all of about that. ‘‘What now?’’ ‘‘The Dow ents. One of the people said in an e- the new jobs in the last 15 years. When Falls 777,’’ ‘‘Economy On The Brink.’’ mail: Wow, think of all the orphans those good, strong businesses couldn’t ‘‘U.S. Pension Insurer Lost Billions In and the widows we are hurting. That get credit, some of them couldn’t keep The Market.’’ ‘‘Housing Prices Take sounds to me like the Enron scandal the doors open. I can tell my colleagues Biggest Dive Since 1991.’’ ‘‘U.S. Drafts where we had traders doing the same that none of them expanded. They

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2752 CONGRESSIONAL RECORD — SENATE April 28, 2010 couldn’t. They didn’t have the capital. cuse me, you are looking at the wrong ator DODD would never have accepted Retail spending fell by 14 percent, driv- bill. this amendment if it wasn’t in concert en by historic declines in consumer Second, it puts a cop on the beat for with the bill. confidence, and because consumer consumers. The bill creates the con- Again, I know that many colleagues spending accounts for 70 percent of our sumer financial protection bureau, have ideas for changing the bill. That economy, this was another disaster on which will have the sole job of pro- is why we are here. My Republican another disaster on another disaster. tecting the American consumers from friends decided not to make any As the recession fueled by the finan- the kind of deceptive and abusive fi- amendments in committee, so this is cial crisis spread, job losses exploded to nancial practices that fueled the crisis. their opportunity to do so. I look for- 750,000 a month, the highest ever re- It will also look out for credit cards ward to seeing their ideas. I say that corded. Some 8.4 million jobs were lost and other things. with sincerity. A lot of Republican in 2008 and 2009. In my own home State We will finally have disclosure in amendments were included in the of California, almost 1 out of every 10 these dark markets. Remember, I health care bill, and that is good. We jobs was lost—1 out of every 10 jobs. To talked about these toxic assets—assets want to see some of their ideas to put a human face on that and think made up of slices of mortgages, many strengthen this bill because, as Senator about those families in that situation of which had no value. They were in DODD has said many times, no Senator where not only did they lose a lot of the dark. Now these dark markets are has a corner on wisdom. We have to their net worth in the stock market over, derivatives markets will be open, work together, and we can get our best which was going down, down, down, and the shadow banking system will be ideas by working together. they were losing the value of their over—over. No more darkness but I am going to work with anyone on home, and then they lost their job, and transparency, openness, and the rest either side of the aisle who has the goal it exacerbated the problem. Unemploy- that goes with it. of protecting the American taxpayers ment rose above 10 percent for the first Here is what the Dodd bill does. It and has the goal of protecting the time in 28 years. In my State it is over curbs risky behavior on Wall Street. It American economy from future crises. 12 percent today. Even though we are says, essentially, no more gambling. I will vote for a couple of colleagues’ now creating jobs in California and in There will be strict new capital and amendments to strengthen this bill. I the country, they are not at a fast borrowing requirements, so you cannot am looking forward to that. enough pace as more people come into go out and superleverage. You have to Let’s not oppose this bill on the the jobs market. We had a situation be able to have some balance in your grounds that to do nothing is better, where almost one out of every five bank. There will be an early warning because, clearly, to do nothing will Americans who wanted to work was un- system to prevent a future crisis. lead us back to this road of getting up deremployed. There will be a financial stability over- in the morning and shaking in our I don’t see how anyone who knows sight council to focus on problems be- boots about what is happening with un- this history—and all you had to do was fore they lead to a crisis. employment and with the loss of our wake up and read the paper or, if you As a last resort, the regulators can pension funds. It is extraordinary to go didn’t do that, put on the TV or, if you break up a company that is too big to back, just to 2007, not that long ago, didn’t do that, look at your Internet fail. Too big to fail is over. If anyone when this all started. We have to com- or, if you didn’t do that, listen to the tells you it is not over, they have not mit ourselves to never having it hap- radio. And if you were without all that, read the bill, because this bill com- pen again. you could have listened to what we pletely and clearly says if a company is Now is the time for Wall Street re- were debating here, and there were too big to fail, the regulators can break form. I am very pleased at this change probably not too many people doing it up. We will see protection against se- of heart on the other side. I was ready that. So how could we ever for one sec- curities market scams. to spend the evening here, and I am ond deny the need for the Dodd bill, The bill mandates management im- happy that I can actually go home to which reflects the President’s Wall provements and increased funding for my family tonight. As much as I enjoy Street reform bill, even for a minute? I the SEC. A new office in SEC will be my colleagues’ company, I would prefer can’t imagine anyone living through created to look at credit rating agen- to be with my family, my grandkids, this crisis could ever doubt the need to cies. Remember, I mentioned that, the my husband, and not have to spend the do the bill that we, thank goodness, are credit rating agencies were just giving night here. But I was prepared to spend on right now. AAA ratings to junk. No more. They the weekend here or whatever it took The bill directly addresses the prob- will have someone looking over their because once in a while an opportunity lems that led to the crisis. It gives reg- shoulders. That is very important. for reform comes along. It did with ulators the tools they need to prevent I want to put the headlines back up. health care. We are in an era of reform, a crisis in the future without ever Clearly, this bill does what we need to and we have to keep doing it. It is all turning to taxpayers. do. The bill stops taxpayer bailouts, expressed right here on this chart. We I am going to quickly go through the and if ever there was a time to agree on know what will happen if we keep this provisions of the Dodd bill. I am going one thing, it would be that. going. Deregulation on steroids didn’t Again, to eliminate all doubt, I pro- to go through six provisions. work. We need sensible regulations, posed an amendment to Senator DODD, First, the bill ends taxpayer bailouts. sensible rules of the road. which he is in agreement with and the The bill guarantees taxpayers will We want everyone to prosper, but we President’s people are in agreement never again be forced to bail out Wall don’t want to see gambling lead to the with, to make it clear that failing Street firms. Failing companies will be pain and suffering that is still going on firms cannot be bailed out. It is very liquidated. Any losses will be absorbed throughout this country. Thank you clear because it says it in this amend- by companies and the financial sector, very much. ment. It cannot keep a company alive, not taxpayers. I yield the floor. That is a jobs bill. on life support, and it cannot stop it By the way, when I heard my col- from failing. When it is liquidated, the f leagues on the other side say they cost of that liquidation will be paid for didn’t think this is true, I went up to by Wall Street firms. UNANIMOUS CONSENT Senator DODD and I talked to the ad- I am excited about the fact that we ministration. I said I am going to offer are finally moving to this bill. By the AGREEMENT an amendment that says this in plain way, the last sentence in the Boxer Mrs. BOXER. Mr. President, I ask English; will you accept it? They did. amendment is very short on this page: unanimous consent that tomorrow, fol- So we will have that amendment ac- Taxpayers shall bear no losses from the ex- lowing the recognition of Senator LIN- cepted. ercise of any authority under the title. COLN, Senator CHAMBLISS be recognized If anybody ever says to you this bill So if anyone says to you this bill for up to 20 minutes. is about giving more taxpayer funds to isn’t clear, I have to say they are mak- The PRESIDING OFFICER. Without bail out Wall Street, you can say: Ex- ing it up because it is very clear. Sen- objection, it is so ordered.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2753 TRIBUTE TO ARTHUR M. TRIBUTE TO THOMAS MORRIS anty agency, lender, and servicer. It is CUMMINGS II GRIFFIN my understanding that some of these earnings will no longer be available to Mr. REID. Mr. President, I rise today Mr. REID. Mr. President, I rise today PHEAA or to other similar agencies to acknowledge the extraordinary work to recognize the extraordinary work of across the country. of Arthur M. Cummings II, who has Thomas Morris Griffin, Jr., during his Would Senator HARKIN agree that served with distinction for more than 12 years with the U.S. Secret Service. some of the services provided by these 20 years with the Federal Bureau of In- In his prior positions, Special Agent agencies are vital and should, to the vestigation. Griffin was assigned to train agents, handle daily operations of the First extent possible, be continued? Mr. Cummings was appointed on Jan- Mr. HARKIN. I am pleased that this uary 9, 2008 as executive assistant di- Lady Whip and protect the President of the United States. Special Agent Grif- bill provides significant support to con- rector of the FBI’s National Security tinue outreach and default aversion ac- branch. In that position, Mr. Cum- fin began his law enforcement career in 1985 at the Richland County Sheriff’s tivities through the College Access mings worked diligently to oversee the Challenge Grant Program funded at FBI’s counterterrorism, counterintel- Office in Columbia, SC. This depart- ment of more than 300 sworn officers $750 million, more than double the ligence, weapons of mass destruction amount we have provided for these and intelligence programs, as well as served a county of more than 300,000 citizens. At that agency, he served as a grants in years past. However, I agree the Terrorist Screening Center. His that these activities are very impor- outstanding work leading the FBI in detective and sergeant in the Major Crimes Unit and as a team leader in tant and we could do more to assist the coordination and liaison with the students. U.S. Director of National Intelligence the narcotic division. Special Agent Griffin also served as a Sheriff’s Dep- Mr. SCHUMER. Mr. President, as and the rest of the Intelligence com- Senator GILLIBRAND and I have ex- munity contributed greatly to the FBI uty with the uniform division, greatly enhancing the safety and security of pressed to Senator HARKIN, we share and the entire intelligence field. Mr. Senator SPECTER’s concerns. The citi- Cummings brought to the job a wealth Columbia, SC. Special Agent Griffin received his zens of our State rely upon the New of investigative and managerial experi- York State Higher Education Services ence. bachelor of science in criminal justice from the University of South Carolina, Corporation, HESC, to provide similar Since becoming an FBI special agent received hundreds of hours of training services, which have also been funded in 1987, Mr. Cummings was assigned to as a special agent, and was duly recog- with the earnings HESC has retained five field offices and to the Counterter- nized in 1994 with the Medal of Valor from their role as a State guaranty rorism Division at FBI headquarters. for hunting down and exchanging fire agency. He managed ounterterrorism, counter- Mrs. GILLIBRAND. Mr. President, I with a murderer who had shot three intelligence, violent crimes and drug ask does Senator HARKIN agree that people, killing two of them. programs in several field offices, and the Secretary of Education has the au- Special Agent Griffin’s work at the had deployed overseas to support sev- thority to contract for these types of Capitol since 2007 has greatly enhanced eral major counterterrorism investiga- services? the safety and security of United tions. Mr. HARKIN. I do. States Secret Service protectees and, Mrs. GILLIBRAND. And, Mr. Presi- Following the terrorist attacks on ultimately, those working in and vis- dent, I ask if Senator SCHUMER would September 11, 2001, Mr. Cummings iting the Capitol complex. He has cul- also agree that in our State and many played an instrumental role in the re- tivated and maintained partnerships other States these agencies provide organization of the FBI’s counterter- with the United States Capitol Police, valuable services to students and fami- rorism program and later served as and the offices of the Senate Sergeant chief of the Counterterrorism Oper- lies? and Arms and House Sergeant at Arms. Mr. SCHUMER. Yes, I do. That is ational Response Section, responsible Through these relationships, the needs why Senator GILLIBRAND, Senator for the development and oversight of of the United States Secret Service SPECTER, and I believe it would be ben- FBI operations in foreign theaters such protective missions are communicated as Afghanistan. In 2003, Mr. Cummings eficial for the Secretary of Education and security plans coordinated. As he to use this authority for State guar- became Chief of the International Ter- is promoted to special agent-in-charge, rorism Operations Section, responsible anty agencies that provide valuable Special Agent Griffin leaves the United services. for developing and managing FBI strat- States Capitol where he has forged egy and operations directed against al- great partnerships as the assistant to f Qaida and its affiliated organizations the special agent-in-charge of the FIRE GRANTS REAUTHORIZATION and networks. Mr. Cummings also United States Secret Service Liaison ACT OF 2010 served in 2004–05 as deputy director of Division. Mr. LIEBERMAN. Mr. President, yes- the National Counterterrorism Center, I wish Special Agent Griffin all the terday Senators DODD, COLLINS, CAR- NCTC, a multiagency organization best in his promotion and new assign- PER, MCCAIN, and I introduced the Fire dedicated to eliminating the terrorist ment. Grants Reauthorization Act of 2010. threat to U.S. interest domestically The bill we presented to the Senate is and abroad. f a bipartisan piece of legislation that After his tenure at NCTC, Mr. HIGHER EDUCATION provides support to our Nation’s fire- Cummings was named special agent-in- Mr. SPECTER. Mr. President, as I fighters and emergency medical service charge of the Counterterrorism Divi- have expressed to Senator HARKIN and responders. It reauthorizes the Assist- sion and Intelligence branch of the to Secretary Duncan, I am concerned ance to Firefighters, AFG, program FBI’s Washington field office. that the Student Aid and Fiscal Re- and the Staffing for Adequate Fire and In recognition of his accomplish- sponsibility Act, SAFRA, may not ade- Emergency Response program, ments, Mr. Cummings was awarded the quately provide for the replacement of SAFER—two highly successful pro- 2004 Attorney General’s Award for Ex- the early college awareness, default grams I worked to establish in 2000 and ceptional Service and the 2006 Presi- prevention, financial literacy, and 2003, respectively. dential Rank Award for Meritorious school support services that are pro- I think we are all aware of the great Executive. Mr. Cummings is a former vided by State guaranty agencies in sacrifices first responders make for us. Navy SEAL and speaks Mandarin Chi- some States. The citizens of my State Since September 11 and the Hurricane nese. He is a graduate of the University rely upon the Pennsylvania Higher Katrina catastrophe, firefighters in of California in San Diego. Education Assistance Agency, PHEAA, communities large and small have as- I, along with all of my Senate col- to provide these services. Over the sumed a greater role in overall na- leagues, congratulate Arthur on his years, PHEAA has funded these serv- tional emergency preparedness. They well-deserved retirement after such a ices with the earnings they have re- are now the frontline of defense in distinguished career. tained from their role as a State guar- most communities for disasters of all

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2754 CONGRESSIONAL RECORD — SENATE April 28, 2010 types. More than ever, firefighters need Our bill contains a number of other the transaction was not blocked be- the training and equipment to deal not important provisions. It raises the cause the State of Virginia had not only with fires but also with hazardous maximum grant amounts available provided his mental health records to materials, nuclear, radioactive and ex- under AFG. As common sense would the National Instant Criminal Back- plosive devices, and other potential suggest, large communities often re- ground Check System, NICS. The Vir- threats. quire a substantial amount of equip- ginia Tech tragedy serves as a somber The demands on firefighters have in- ment, and they will now be able to illustration of the importance of the creased in other ways as well. As the apply for funding in amounts more in NICS database containing accurate New York Times reported last year, line with what they need. criminal history and mental health firefighters are responding more and We also would provide funding for na- records of prohibited individuals. more to medical emergencies—15.8 mil- tional fire safety organizations and in- The Virginia Tech shooting prompted lion in 2008, a 213 percent increase from stitutions of higher education that the passage of the NICS Improvement 1980. Right here in Washington, DC, at wish to create joint programs estab- Amendments Act of 2007, Public Law Fire Engine Company 10—known as the lishing fire safety research centers. 110–180, which authorized funds to as- ‘‘House of Pain’’ for its grueling sched- There is a great need for research de- sist States and State courts in the au- ule—80 percent of the calls are for med- voted to fire safety and prevention and tomation of mental health and crimi- ical emergencies. Our Nation’s fire- improved technology. The work these nal records and in the transmittal of fighters—like other first responders are centers do will help us reduce fire cas- these records to the Federal NICS data- the first to arrive and the last to leave ualties among firefighters and civilians base. Unfortunately, due to budget con- whenever trouble hits. They deserve all and make communities safer. straints, some States still have not the support we can give them. As important as it is to help our fire- fully digitized their criminal history Regrettably, they do not always get fighters, we must also demand account- records, nor do they have the funds it. Firefighters often lack the equip- ability when we spend taxpayer dollars. necessary to process the transfer of ment and vehicles they need to do their For this reason, we require that FEMA State records into NICS. According to jobs safely and effectively. The U.S. create performance management sys- the group Mayors Against Illegal Guns, Fire Administration reported in 2006 tems for these programs, complete the NICS database contains less than that 60 percent of fire departments did with quantifiable metrics that will 20 percent of the mental health records not have enough breathing apparatuses allow us to see how well they perform. it should. In addition, according to the to equip all firefighters on a shift, 65 Going forward, this will allow us to see Brady Campaign, NICS is missing 25 percent did not have enough portable what works in these programs and percent of the necessary felony convic- radios, and 49 percent of all fire engines what does not so that we can make tion data from States. These gaps in were at least 15 years old. We can and should do more so that needed improvements when required. needed records weaken the ability of We have also included provisions to these brave men and women have what current Federal law to stop firearms they need to protect their communities prevent earmarks from being attached from getting into the hands of dan- and themselves as they perform a very to these programs. AFG and SAFER gerous or potentially dangerous indi- dangerous job. Our bill takes much- have never been earmarked—an im- viduals. needed steps to ensure that they do. pressive accomplishment—and we want It is essential that States and State To start with, because career, volun- to keep it that way. The funding for courts have the resources needed to en- teer, and combination fire departments these programs needs to go to fire- sure that the Federal background all suffer from shortages in equipment, fighters, not pet projects. check system contains comprehensive vehicles, and training, our bill requires Finally, this legislation authorizes and up-to-date records. To that end, I that each type receives at least 25 per- $950 million each for these vital pro- recently joined seven of my colleagues cent of the available AFG grant fund- grams. This is actually less than what in urging the Senate Appropriations ing. The remaining funds will be allo- was authorized in the past. We believe Committee to include $325 million in cated based on factors such as risk and that supporting our nation’s fire- the fiscal year 2011 Commerce, Justice, the needs of individual communities fighters and emergency medical service Science, and Related Agencies appro- and the country as a whole. This cre- responders ought to be a priority, but priations bill to fully implement the ates an appropriate balance, ensuring we recognize that these tough fiscal NICS Improvement Amendments Act. that funds are directed at departments times require some belt-tightening. NICS is a powerful tool in the preven- facing the most significant risks while Authorizing funding for AFG and tion of gun violence that deserves full guaranteeing that no department is SAFER at these amounts sends the congressional support. left out. message that Congress can direct fund- f We have also taken a number of steps ing where it is needed while also show- WORKER’S MEMORIAL DAY 2010 in our bill to help fire departments re- ing discipline. cover from the recession. Faced with These programs address a vital na- Mr. HARKIN. Mr. President, each economic difficulties, local govern- tional need. Our legislation ensures year, we set aside April 28 as Workers ments have reduced spending on vital that fire departments get the support Memorial Day, a time to remember and services, including fire departments. they need to protect their communities honor those who have been killed or in- Among other things, these cuts have while also protecting taxpayer dollars. jured or have contracted a serious ill- prevented many departments from re- I urge my colleagues to join me in sup- ness in the workplace. Since the pas- placing old equipment and forced them porting the reauthorization of these sage of the Coal Mine Health and Safe- to lay off needed firefighters. To help important programs. ty Act and Occupational Safety and departments rebuild, we have lowered f Health Act four decades ago, countless the matching requirements for AFG lives have been saved and the number IMPORTANCE OF FUNDING NICS and SAFER. Departments are still re- of workplace accidents has been dra- quired to match some of their grant Mr. LEVIN. Mr. President, April 16 matically reduced. awards with funds of their own—ensur- marked the 3-year anniversary of the Yet too many workers still remain in ing they have some skin in the game— deadliest shooting rampage in our Na- harm’s way. In 2008, over 5,200 people but the reduced amount will make it tion’s history, a tragedy that took the were killed at work in the United easier for them to accept awards. lives of 32 Virginia Tech students and States and roughly 50,000 workers died We have also created an economic faculty members and wounded 17 more. from occupational diseases. Millions hardship waiver for both grant pro- In the aftermath of the shooting, inves- more were injured on the job. This grams that will allow FEMA to waive tigations uncovered that the gunman, means that, on an average day, 151 certain requirements, such as requiring Seung-Hui Cho, was able to purchase workers lose their lives, 14 from inju- that grantees provide matching funds, two guns in violation of Federal law. ries and 137 from job-related diseases. for departments in communities that Due to his history of mental illness, These are workers from all walks of have been especially hard hit by tough Mr. Cho was legally prohibited from life—firefighters, police officers, coal economic times. purchasing these firearms. However, miners and farmers, men and women

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2755 who are working to put food on the a worker is killed. To date, OSHA has As a student at Saint Michael’s in table to support their families and cited Motiva for nearly two dozen the late 1940s and early 1950s, Father loved ones. These deaths are tragedies other violations since Jeff Davis’ Ray graced the George ‘‘Doc’’ Jacobs that can and should be prevented. death. In 2009, workers went on strike baseball program as a starting and re- Our entire Nation mourned when we against the same company that leased lief pitcher for the college. Later in his learned of the terrible tragedy that its barge to Armco, protesting unsafe career, Father Ray would serve as a killed 29 miners in Montcoal, WV. But workplace practices, after a deckhand key member of the college’s 1987 and it is important to remember that was crushed to death between two 1996 athletic tasks forces. Last year, mines aren’t our only dangerous work- barges. As Holly said to me, ‘‘another the Saint Michael’s community hon- places. Our Nation suffered another family suffers because of the same neg- ored that legacy by inducting him in to great loss when we learned of the 11 ligence.’’ the Saint Michael’s College Athletic missing oil rig workers off the coast of This has to change. We need to in- Hall of Fame. Louisiana, and we still mourn the lives crease penalties for irresponsible em- Saint Michael’s widely recognized of those workers who died in explosions ployers who ignore the law, and give reputation for encouraging its students in Washington State and Connecticut our federal agencies the enforcement and alumni to foster peace and justice earlier this year. All of these incidents tools they need to keep workers away has been bolstered by Father Ray’s could have been prevented. These ter- from imminent danger. This week we commitment to community service and rible tragedies illustrate the dangers held a hearing in the HELP Committee helping those in need. His frequent in- to explore these challenging issues. hardworking Americans face on the job volvement in Saint Michael’s signature And, in the weeks ahead, I intend to every day, and why we need to redouble service organization, the Mobilization work with my colleagues on both sides our efforts to make every workplace a of Volunteer efforts, MOVE, has been of the aisle on legislation to make our safe workplace. an example to all. mines and all our dangerous work- Every April 28, for the past 9 years, Two years ago, in 2008, Father Ray Mary Davis and her family have ob- places safer. Workplace safety is an issue that is and the Edmundite community cele- served Workers Memorial Day in honor brated the 50th anniversary of his ordi- of her husband Jeff Davis, a boiler- very personal to me. My father was a coal miner, and I saw firsthand the nation. As Father Ray marks another maker who was killed in a sulfuric acid milestone this year, I join with count- tank farm explosion at a refinery in devastating effects of the lung prob- lems created by his work in the mines. less of fellow Michaelmen in wishing Delaware. His body was never recov- him the happiest of birthdays. We all ered, most likely because it was dis- We still have a long way to go to en- sure that our sons and daughters, look forward to his continued support solved in acid. The disaster also injured of the Saint Michael’s mission. eight other workers and caused major moms and dads, brothers and sisters all f environmental impact in the sur- come home safe from a hard day’s rounding area. Motiva, the company work, and we should not rest until ADDITIONAL STATEMENTS workplace tragedies are a chapter in that owned the refinery, pleaded guilty the history books, and we no longer to discharging pollutants into the have any need to observe a day of REMEMBERING ERNEST BRAUN Delaware River and negligently releas- mourning for American workers killed ing sulfuric acid into the air, both in ∑ Mrs. BOXER. Mr. President, it is on the job. violation of the Clean Air Act, result- with a heavy heart that I ask my col- ing in a $10 million fine. For the same f leagues to join me today in honoring accident, OSHA initially cited three se- TRIBUTE TO FATHER RAY the memory of a remarkable man, Er- rious and two willful violations against DOHERTY nest Braun of Marin County, CA. Er- Motiva for Jeff Davis’ death. The Agen- Mr. LEAHY. Mr. President, on May 4, nest was a passionate photographer cy proposed a penalty of $175,000 that the Saint Michael’s College community and avid environmentalist who loved Motiva later was able to reduce will celebrate the 80th birthday of a sharing the gifts of photography and through settlement for a total of only fellow Michaelman and longtime friend nature with his family and community. $132,000. of many, Reverend Raymond Doherty. He passed away on March 23, 2010. I recently spoke with Holly Shaw, a Father Ray, as he is known to many, Ernest Braun was born on September school teacher living in Pennsylvania. graduated from Saint Michael’s College 13, 1921, in St. Louis, MO, to Maurice Her husband Scott drowned after fall- in 1951, and began what has become a and Hazel Braun. At their home in San ing into the Schuylkill River while lifetime of service to the Saint Mi- Diego, the Braun family celebrated the working on two barges, helping to chael’s community. A devoted member out of doors during Ernest’s early dredge the river. The barges had no life of the Society of Saint Edmund, whose years. Maurice Braun, an impressionist jackets for workers to wear, and no life members founded Saint Michael’s over painter inspired by California’s land- preservers in the event of an accident. 100 years ago, Father Ray embodies the scape, shared his deep appreciation of The two barges were connected by a se- deep commitment to social justice that nature with his children. While still ries of old tires that workers had to has become the hallmark of a Saint very young, Ernest was given his first navigate to move from barge to barge. Michael’s College education. It is camera as a Christmas gift, and his OSHA found Armco, the company that among the many reasons I am proud to world would never be the same. The employed Scott, had committed four join Saint Michael’s alumni every- camera became Ernest’s tool for shar- serious violations and was fined $4,950. where in celebrating this milestone. ing his perspective of the world with Holly later found out that Armco was For the past seven decades, Father those around him. given the opportunity to plead down Ray has advised, counseled, and sup- During World War II, Ernest served the fine and ended up only paying ported countless Saint Michael’s stu- in the U.S. Army as a combat photog- $4,000 for Scott’s death. It is truly dents, faculty, alumni, and rapher, capturing images of the atroc- shocking that the company faced such Vermonters. His contributions have ities of war in Europe. Ernest’s photos minor consequences for its appallingly not gone unnoticed. In 2005, a fellow of concentration camps and numerous inadequate safety practices. classmate established the Reverend battles brought the conflict home to Unfortunately, stories like Jeff Raymond Doherty SSE ’51 Scholarship American shores. He served his country Davis’s and Scott Shaw’s are all too to honor Father Ray’s significant con- greatly with his portrayals of the common. Although a willful or repeat tributions as a college administrator, human cost of war. Following the end violation of OSHA carries a maximum friend, and religious leader. Saint Mi- of the war, he lived briefly in New York penalty of $70,000 and willful violations chael’s students continue to learn and before he and his new wife, Sally Long, a minimum of $5,000, most penalties grow from Father Ray’s contributions settled in San Anselmo, CA. Inspired are far smaller. In both cases, current to the Saint Michael’s community. by the beautiful vistas of Marin Coun- penalties weren’t sufficient to force re- Countless students, and in many cases ty, in the 1960s Ernest discovered his calcitrant employers to take work- generations of families, are lucky to true love: nature photography. He be- place safety more seriously even when know him. lieved strongly in the importance of

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2756 CONGRESSIONAL RECORD — SENATE April 28, 2010 humanity’s relationship to the natural won the South Dakota State ‘‘B’’ new pieces of art. According to Authur world, and he created images to help Championship. After high school, he Amiotte, during her long career she as- people see and maintain that connec- played with the All American Indian sisted in and witnessed the beginning tion. Semi-Pro team. Illustrating his endur- careers of many traditional tribal arti- Ernest became an award-winning ing commitment to community, he san and contemporary painters, sculp- photographer serving architectural, in- maintained contact throughout his life tors, and jewelers. Among her varied dustrial, and commercial clients while with his high school basketball coach, responsibilities, she coordinated a nurturing his dedication to showcasing Gus Kolb. Keeler worked for many number of special exhibits each year to the beauty of Mother Nature. Ernest years as a certified building and trades highlight the work of emerging artists. was deeply committed to his craft and professional and also served as a bus The integrity of the collections within worked to ensure others had the oppor- driver for the Takini School before he the museum and their existence for fu- tunity to explore photography. Ernest was elected to the Cheyenne River ture generations is in no small part taught photography at several schools Tribal Council in 2002. He served a 4- thanks to Ms. Montileaux. including the University of California, year term. Ms. Montileaux went about her im- Berkeley, and the University of Cali- In 2003, I met Keeler when he hosted portant work each day quietly and fornia, San Diego. In addition, he trav- me and former Indian Health Service without any self interest; all of her at- eled around the world teaching envi- Director Dr. Charles Grim in Cherry tention was always focused on the col- ronmental photography workshops in Creek. We joined him for a tour and lections and their importance to the Peru, Kenya, New Zealand, Alaska, Ec- pow-wow. I remember well his constant tribes and all residents of South Da- uador, China, New Zealand, the Gala- advocacy for better health care and an kota. Again, I congratulate her on her pagos Islands, and elsewhere. Ernest improved quality of life for tribal com- retirement and wish her and her hus- was a revered and sought-after photog- munities. After Keeler retired from the band Don Montileaux all the best on rapher whose gift for the art form was Tribal Council, he continued to be a their future endeavors.∑ admired by many. consistent presence at Tribal Head- f Ernest’s photography has been exhib- quarters in Eagle Butte. He would take ited in prestigious institutions all over the time to visit with many tribal REMEMBERING CHRISTOPHER W. the country, including the San Fran- members and provide guidance to the WHITE cisco Museum of Modern Art and the elected leaders. ∑ Mr. KAUFMAN. Mr. President, in the Time-Life Gallery in New York City. In I am sure that Keeler’s entire family, past couple of years, the economy took 1968, Ernest was voted the Nation’s top including his wife Frieda, four chil- a turn for the worse, and the Commu- architectural photographer by the dren, and two stepchildren are very nity Legal Aid Society, Inc.—CLASI, American Institute of Architects, and proud of his accomplishments, as they for short—in my home State of Dela- in 1970 he won first prize in the land- ought to be. Strong leaders are central ware, was hit with a triple whammy. scape division of Life magazine’s photo to the well-being of tribal commu- More people needed help while there contest. Many of his images have also nities, and the Cheyenne River Sioux were fewer private and government been published in books celebrating our Tribe certainly benefited from Keeler’s contributions to go around. environment. contributions.∑ CLASI’s executive director, Chris- Ernest was a kind and decent man f topher W. White, faced these new, in- with whom I had the great pleasure of creasing, and difficult challenges TRIBUTE TO PAULETTE being personally acquainted. He will bravely and with an amazing sense of MONTILEAUX certainly be remembered for his skill- determination. Some would say Chris ful photographic representations of the ∑ Mr. JOHNSON. Mr. President, I wish did his best work when the going got world around him and for his love and today to pay tribute to Ms. Paulette particularly tough. dedication to nature. Although he will Montileaux of Rapid City, SD, on an Today, the Legal Aid Society is a be dearly missed, we take comfort in outstanding 42 years of service to the wonderful and esteemed nonprofit law knowing that future generations will Federal Government as an employee of firm dedicated to providing advice to continue to benefit from the timeless the U.S. Department of Interior’s In- people with low incomes or disabilities gifts of the photographs he left behind. dian Arts and Crafts Board. An en- as well as those who are elderly. The Ernest is survived by his daughter rolled member of the Rosebud Sioux success of CLASI is in large part due to Jennifer; his sons Jeff, Christopher, Tribe, Ms. Montileaux began her serv- Chris’s almost two decades of hard and Jonathan; and his four grand- ice in Rapid City as a clerk and typist work, direction, and excellent fund- children. Our hearts go out to Ernest’s for the Indian Arts and Crafts Board in raising abilities. His devotion to CLASI family and friends during this difficult 1967. In 1978, she was promoted to Mu- was clear during the recent recession, time.∑ seum Assistant, and in 1983 she was when he lowered his own salary so that f named Curator for the Sioux Indian others could keep their jobs. Museum. However, the Delaware and legal REMEMBERING KEELER CONDON The Sioux Indian Museum in Rapid communities faced a tragic blow last ∑ Mr. JOHNSON. Mr. President, today City was founded in 1939 and is home to week when Chris’s life was tragically I wish to recognize Keeler Bud Condon, the historic Anderson Collection from cut short on Wednesday, April 21. He former councilman of the Cheyenne the Rosebud Reservation, which was was 48. River Sioux Tribe in South Dakota. gathered in the 1880s and 1890s. This You can’t go far in Wilmington with- Keeler passed away on March 30, 2010. museum is one of three such unique out hearing that Chris was a brilliant The community of Cherry Creek, SD, and important Museums nationwide advocate and overall great person. and all of the Cheyenne River Indian under the care of the Indian Arts and When you talked with Chris, his pas- Reservation lost a great leader and Crafts Board. Over the years, this Mu- sion and drive would rub off on you. He friend. seum’s collections have grown into one had the effect of making everyone who Keeler’s Lakota name, Iktomi of the most extensive collections of knew him want to become a better per- Kuwapi, is translated as ‘‘Cannot Be Lakota/Dakota/Nakota artifacts. Ms. son. Fooled.’’ He was born on May 5, 1941, in Montileaux and her staff have worked Much of this was owed to Chris’s cha- Porcupine, SD, on the Pine Ridge Res- tirelessly to preserve these possessions. risma. He was one-of-a-kind, and his in- ervation, and he spent his childhood Housed within the Journey Museum for telligence never came off as preten- years there. Keeler attended a number the past 13 years, items from the Sioux tious. Everything that Chris did was of tribal schools before graduating Indian Museum are viewed by the pub- driven by his heart—not politics or ca- from Cheyenne-Eagle Butte High lic in a realistic travel through time. reer-climbing—and a strong desire to School in 1961. For 42 years, Ms. Montileaux worked make things better in his community. One of Keeler’s greatest joys was to preserve the history of the Lakota/ Chris was a preacher’s son and a sports. He was an avid sports fan and Dakota/Nakota people by maintaining graduate of Boston College and Suffolk athlete; in 1959, his basketball team existing collections, as well acquiring University Law School. During law

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2757 school, Chris had a summer internship Research Service. He held a bachelor’s of Naval Operations, CNO, for Fleet at Harvard Legal Aid, which changed degree in international relations from Readiness and Logistics, a position of his life. He could have been a private the University of Minnesota, a mas- great responsibility, from January 2007 attorney with a high salary and a frac- ter’s degree in international affairs to April 2010. tion of the workload of a public inter- from American University in Wash- Vice Admiral Loose brought a unique est attorney. However, Chris devoted ington, DC, and a master’s degree in and remarkable perspective to the his entire professional career to Dela- national security strategy from the CNO’s leadership team, resulting in ware’s Community Legal Aid Society. National War College in Washington, profound innovations to Navy policy, Some of the highlights of his very DC. programs, and resourcing. His profes- bright career were when he argued be- Christopher was born on June 13, sional reach extended to the Joint fore the Delaware Supreme Court. 1962, in Minneapolis, MN, raised there Staff, the other Services, our inter- One of his passions was the issue of and then spent his adult life and career national defense partners, and the in- safe, affordable, and adequate housing. in the National Capitol Region until dustry to achieve alignment and col- The original Legal Aid Society dates his untimely death on May 1, 2009. laboration resulting in great benefits back to 1946, but just recently CLASI Christopher was recognized through- to everyone involved. He was the vi- added the Fair Housing Program to en- out Congress, the military Services, sionary leader and driving force behind force fair housing rights for all people the defense community, and the aero- the Navy’s transition from a level-of- regardless of race, color, religion, sex, nautical industry as an expert on the effort based budget to a model-based national origin, age, disability, and fa- management, operational use and pro- approach that links Afloat Readiness milial status. This is in large part due curement of military aircraft. In that to output metrics and resources. This to Chris’s commitment to this issue. capacity, he assisted Congress in its transformational leap provided senior He was involved with many community legislative and oversight activities, in- Navy leadership the intellectual basis development and housing organizations cluding testifying before the Senate and the tools to enhance core and took up the cause before the State Armed Services Committee; the House Warfighting capabilities in a restrained general assembly. He wrote a new Armed Services Committee; the Senate fiscal environment and to clearly de- State law to settle conflicts between Commerce, Science and Transportation fine the relationship between baseline manufactured-home owners and land- Committee; and the Senate Govern- and overseas contingency operations lords. He also reworked New Castle mental Affairs Committee. Christopher funding. County’s landlord-tenant code so ten- published many influential CRS re- Vice Admiral Loose was also the van- ants could better understand their ports on such subjects as Air Force aer- guard who recognized the strategic im- rights. ial refueling; the role of airpower in perative of energy to the employment Chris’s hard work was widely recog- counterinsurgency operations; tactical of Navy combat forces and spearheaded nized by his peers. He received the New aviation and bomber force moderniza- the establishment of Task Force En- Lawyers Distinguished Service Award tion; military aviation safety; suppres- ergy and the Navy Energy Coordina- from the Delaware State Bar Associa- sion of enemy air defenses; and pro- tion Office 2 years ago. He fully estab- tion in 1999 and the Kind Policy Award tecting commercial aircraft from lished the mindset that energy is a tac- from the Delaware Housing Coalition shoulder-fired missiles. He provided ob- tical advantage and strategic enabler in 1997. jective, expert analysis on a number of for military forces. In short order, his Only days after his passing, one of issues, including the Joint Strike Energy organization was recognized as his many projects was opened in down- Fighter and the KC–X Tanker, to Con- the premier model for the other Serv- town Wilmington. He had led the ren- gress, the Senate Armed Services Com- ices and as the foundation for the ovation of an abandoned commercial mittee, and to me and my staff person- DON’s Energy program. In addition, he space into ‘‘Shipley Lofts,’’ a 23-unit ally—analysis for which I am very profoundly reshaped and expertly guid- artist community. The 1,500-square- grateful. ed the Navy’s Environmental Program Christopher displayed generous en- foot gallery has been named the Chris- at a time when the importance of the thusiasm for meeting the professional topher W. White Gallery in his mem- program was paramount. His foresight needs of colleagues and clients, enliv- ory, and the nonprofit organization and energetic leadership ensured the ened by persistent humor and wit in that oversees the project has been re- Navy achieved regulatory milestones his interpersonal relations. He worked named the Christopher W. White Com- and uninterrupted, critical operational hard at his public duties. He also munity Development Corporation. training in support of national com- Chris gave everything he had—mind, played hard with friends, whether ski- mand authority objectives. body, time, resources—to those with- ing or kick-boxing, and found time to out a voice. Tragically, he was hit by a serve others, at for example the Falls In recognition of the enormous chal- car in front of the building he worked Church Presbyterian Church in Falls lenges inherently facing the funding of so hard to develop as a place of vitality Church, VA. future ownership costs of existing and and creativity. On this occasion—the first anniver- new systems Vice Admiral Loose di- The loss of Christopher W. White is a sary of Christopher’s passing away—I rected the development of a ‘‘2030 and great loss to Delaware. He will be truly want to honor the life and achieve- Beyond’’ assessment that dem- missed. My sympathies go out to his ments of Congressional Research Serv- onstrated that the growth in future family, friends, and colleagues, espe- ice Specialist Christopher Bolkcom, ownership costs of existing and new cially his wife Leandria and their chil- who is survived by his loving family, systems would far exceed the expected dren, Josh and Kayla, and his mother, including his children Jessica and Max- growth in the Navy’s topline budget Donna.∑ well Bolkcom; their mother Mary Anne over the next 20 years. His efforts led to an increased focus on total owner- f Alexander; his parents Gene and Ann Bolkcom; his sister Elizabeth ship costs across the Navy, specific di- REMEMBERING CHRISTOPHER C. Matteson; his brother Bill Bolkcom; rection in the 2010 Chief of Naval Oper- BOLKCOM and his nephew Tristin Matteson.∑ ations Guidance and his assignment as ∑ the Navy’s Executive Agent for Total Mr. MCCAIN. Mr. President, I wish to f speak in order to honor the life and Ownership Costs. achievements of Christopher C. TRIBUTE TO VICE ADMIRAL MIKE Today, I honor Vice Admiral Loose Bolkcom, Congressional Research LOOSE for his service to our country, his in- Service Specialist, on the occasion of ∑ Mr. MCCAIN. Mr. President, I would spirational and visionary leadership, the first anniversary of his passing like to take a moment today to recog- his extraordinary strength of character away, on May 1, 2009. nize the extraordinary contributions of and moral courage, and his irrepress- Christopher Bolkcom served Congress VADM Mike Loose, Civil Engineer ible drive and leadership. He and his with distinction for 9 years at the Li- Corps, U.S. Navy to our Nation. Vice wife Carol and their son Chris have brary of Congress as a specialist in Admiral Loose has served with excep- made many sacrifices during his career military aviation for the Congressional tional distinction as the Deputy Chief in the Navy. I call upon my colleagues

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MESSAGES FROM THE PRESIDENT COMMITTEES * Nomination was reported with rec- Messages from the President of the The following executive reports of ommendation that it be confirmed sub- United States were communicated to nominations were submitted: ject to the nominee’s commitment to the Senate by Mrs. Neiman, one of his respond to requests to appear and tes- secretaries. By Mr. KERRY for the Committee on For- eign Relations. tify before any duly constituted com- f * Mari Carmen Aponte, of the District of mittee of the Senate. Columbia, to be Ambassador Extraordinary f EXECUTIVE MESSAGES REFERRED and Plenipotentiary of the United States of As in executive session the Presiding America to the Republic of El Salvador. INTRODUCTION OF BILLS AND Officer laid before the Senate messages Nominee: Mari Carmen Aponte JOINT RESOLUTIONS from the President of the United Post: El Salvador The following bills and joint resolu- (The following is a list of all members of States submitting sundry nominations my immediate family and their spouses. I tions were introduced, read the first which were referred to the appropriate have asked each of these persons to inform and second times by unanimous con- committees. me of the pertinent contributions made by sent, and referred as indicated: (The nominations received today are them. To the best of my knowledge, the in- By Mrs. BOXER: printed at the end of the Senate pro- formation contained in this report is com- S. 3268. A bill to amend title 49, United ceedings.) plete and accurate.) States Code, to prohibit individuals who Contributions, amount, date, donee: have worked on motor vehicle safety issues f 1. Self: $500, 4–22–05, Cong. Nydia at NHTSA from assisting motor vehicle man- MESSAGES FROM THE HOUSE Vela´ zquez; ¥$540, 6–29–05, Latina RoundTable ufacturers with NHTSA compliance matters PAC ($540 Refund from Contribution prior to for a period of 3 years after terminating em- At 9:52 a.m., a message from the 2005.); $4000, 6–30–06, DCCC; $250, 2–23–07, ployment at NHTSA, and for other purposes; House of Representatives, delivered by Cong. Jose Serrano; $400, 4–30–0, Dorgan for to the Committee on Commerce, Science, Mrs. Cole, one of its reading clerks, an- Senate; $2000, 12–28, Salazar 2008; $1000, 2–19– and Transportation. nounced that the House has passed the 0, H Clinton Committee; $150, 3–05–0, Tadeo By Mrs. GILLIBRAND (for herself, Mr. for Congress; $200, 6–10–0, McMahon for Con- DODD, and Ms. KLOBUCHAR): following bills, in which it requests the S. 3269. A bill to provide driver safety concurrence of the Senate: gress; $800, 6–10–0, Salazar 2008; $5000, 9–19–0, Poder PAC; $5000, 10–30–08, Obama Victory grants to States with graduated driver li- H.R. 3808. An act to require any Federal or Fund; $1000, 12–05–08, Poder PAC; $1000, 03–03– censing laws that meet certain minimum re- State court to recognize any notarization 09, Becerra for Congress; $500, 03–18–09, quirements; to the Committee on Environ- made by a notary public licensed by a State Pleitez for Congress; $500, 04–22–09, Cong. ment and Public Works. other than the State where the court is lo- Nydia Vela´ zquez; $500, 05–11–09, DSCC; $100, By Mr. MCCAIN: cated when such notarization occurs in or af- 6–29–09, Amigos de Salazar; $250, 9–11–09, S. 3270. A bill to include the county of Mo- fects interstate commerce. DSCC; $1000, 10–16–09; Menendez for Senate; have, in the State of Arizona, as an affected H.R. 5017. An act to ensure the availability $1000, 10–28–09, Ctee to Re-elect N Vela´ zquez; area for purposes of making claims under the of loan guarantees for rural homeowners. $1000, 11–11–09, Ctee to Re-elect N Vela´ zquez; Radiation Exposure Compensation Act based H.R. 5146. An act to provide that Members ¥$1000, 02–02–10, Refund Poder PAC ($1000 Re- on exposure to atmospheric nuclear testing; of Congress shall not receive a cost of living fund from Contribution made in error in to the Committee on the Judiciary. adjustment in pay during fiscal year 2011. 2008). By Mr. UDALL of New Mexico: S. 3271. A bill to amend section 30166 of 2. Grandparents: All four Grandparents de- title 49, United States Code, to require the At 1:23 p.m., a message from the ceased before 2005. installation of event data recorders in all House of Representatives, delivered by 3. Father: Rene Aponte—deceased on June motor vehicles manufactured for sale in the 17, 1989. Mr. Novotny, one of its reading clerks, United States, and for other purposes; to the 4. Mother: Maria Cristina Rodriguez, since announced that the House has passed Committee on Commerce, Science, and 2005—DCCC, 6–24–06, $2000; DNC, 9–15–08, $35. the following bill, in which it requests Transportation. 5. Sister: Maria Teresita Aponte Aloma, the concurrence of the Senate: By Mr. BENNET: since 2005—DCCC, 6–30–06, $2000; Salazar 2008, S. 3272. A bill to provide greater controls H.R. 5147. An act to amend the Internal 12–28–07, $1000. Revenue Code of 1986 to extend the funding and restrictions on revolving door lobbying; 6. Step Sister: Kate Wood, since 2005—Ctee to the Committee on Homeland Security and and expenditure authority of the Airport and ´ to Re-elect N Velazquez, 4–25–05, $1000; Ctee Governmental Affairs. Airway Trust Fund, to amend title 49, United ´ to Re-elect N Velazquez, 10–20–05, $1000; By Mr. CORNYN (for himself and Mrs. States Code, to extend authorizations for the Obama for America, 9–17–08, $300; Obama for airport improvement program, and for other HUTCHISON): America, 9–30–08, $250. S. 3273. A bill to establish a program to purposes. 7. Step Brother: Bill Wood, since 2005—Ctee provide southern border security assistance f to Re-elect N Vela´ zquez, 9–29–05, $500. grants, to authorize the appointment of addi- tional Federal judges in states along the MEASURES REFERRED By Mr. LIEBERMAN for the Committee on southern border, and for other purposes; to The following bills were read the first Homeland Security and Governmental Af- the Committee on the Judiciary. fairs. By Mr. CORNYN (for himself and Mr. and the second times by unanimous * Dana Katherine Bilyeu, of Nevada, to be a consent, and referred as indicated: BROWN of Ohio): Member of the Federal Retirement Thrift In- S. 3274. A bill to amend the Controlled Sub- H.R. 3808. An act to require any Federal or vestment Board for a term expiring October stances Act to address the use of intrathecal State court to recognize any notarization 11, 2011. pumps; to the Committee on the Judiciary. made by a notary public licensed by a State * Michael D. Kennedy, of Georgia, to be a By Mr. BAUCUS (for himself and Mr. other than the State where the court is lo- Member of the Federal Retirement Thrift In- GRASSLEY): cated when such notarization occurs in or af- vestment Board for a term expiring Sep- S. 3275. A bill to extend the Caribbean fects interstate commerce; to the Committee tember 25, 2010. Basin Economic Recovery Act, to provide on the Judiciary. * Michael D. Kennedy, of Georgia, to be a customs support services to Haiti, and for H.R. 5017. An act to ensure the availability Member of the Federal Retirement Thrift In- other purposes; to the Committee on Fi- of loan guarantees for rural homeowners; to vestment Board for a term expiring Sep- nance. the Committee on Banking, Housing, and tember 25, 2014. By Mr. WYDEN (for himself and Ms. Urban Affairs. * Dennis P. Walsh, of Maryland, to be MURKOWSKI): Chairman of the Special Panel on Appeals f S. 3276. A bill to provide an election to ter- for a term of six years. minate certain capital construction funds MEASURES PLACED ON THE * Milton C. Lee, Jr., of the District of Co- without penalties; to the Committee on Fi- CALENDAR lumbia, to be an Associate Judge of the Su- nance. perior Court of the District of Columbia for By Mr. UDALL of New Mexico: The following bill was read the first the term of fifteen years. S. 3277. A bill to amend the American Re- and second times by unanimous con- * Todd E. Edelman, of the District of Co- covery and Reinvestment Act of 2009 to re- sent, and placed on the calendar: lumbia, to be an Associate Judge of the Su- serve funds under the programs for payments

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2759 to the Bureau of Indian Education of the De- safety officers employed by States or S. 3196 partment of the Interior for Indian children; their political subdivisions. At the request of Mr. KAUFMAN, the to the Committee on Health, Education, S. 1681 name of the Senator from Delaware Labor, and Pensions. At the request of Mr. LEAHY, the (Mr. CARPER) was added as a cosponsor f name of the Senator from California of S. 3196, a bill to amend the Presi- SUBMISSION OF CONCURRENT AND (Mrs. BOXER) was added as a cosponsor dential Transition Act of 1963 to pro- SENATE RESOLUTIONS of S. 1681, a bill to ensure that health vide that certain transition services insurance issuers and medical mal- shall be available to eligible candidates The following concurrent resolutions practice insurance issuers cannot en- before the general election. and Senate resolutions were read, and gage in price fixing, bid rigging, or S. 3201 referred (or acted upon), as indicated: market allocations to the detriment of At the request of Mr. UDALL of Colo- By Mr. WHITEHOUSE (for himself, Ms. competition and consumers. rado, the name of the Senator from COLLINS, Mr. CARDIN, Mr. WYDEN, S. 1695 Montana (Mr. TESTER) was added as a Mrs. FEINSTEIN, Mr. SANDERS, Ms. CANTWELL, Mr. LEVIN, Mr. KERRY, At the request of Mr. BURRIS, the cosponsor of S. 3201, a bill to amend and Mr. LAUTENBERG): names of the Senator from North Caro- title 10, United States Code, to extend S. Res. 503. A resolution designating May lina (Mr. BURR) and the Senator from TRICARE coverage to certain depend- 21, 2010, as ‘‘Endangered Species Day’’; to the North Carolina (Mrs. HAGAN) were ents under the age of 26. Committee on the Judiciary. added as cosponsors of S. 1695, a bill to S. 3254 By Mr. WICKER (for himself and Mr. authorize the award of a Congressional At the request of Mr. BROWN of Ohio, COCHRAN): gold medal to the Montford Point Ma- S. Res. 504. A resolution expressing the the name of the Senator from Mary- condolences of the Senate to those affected rines of World War II. land (Ms. MIKULSKI) was added as a co- by the tragic events following the tornado S. 2862 sponsor of S. 3254, a bill to amend the that hit central Mississippi on April 24, 2010; At the request of Ms. SNOWE, the Fair Labor Standards Act of 1938 to re- considered and agreed to. name of the Senator from Massachu- quire persons to keep records of non- f setts (Mr. KERRY) was added as a co- employees who perform labor or serv- sponsor of S. 2862, a bill to amend the ices for remuneration and to provide a ADDITIONAL COSPONSORS Small Business Act to improve the Of- special penalty for persons who S. 384 fice of International Trade, and for misclassify employees as non-employ- At the request of Mr. LUGAR, the other purposes. ees, and for other purposes. name of the Senator from Minnesota S. 2962 S. 3262 (Ms. KLOBUCHAR) was added as a co- At the request of Mr. DODD, the name At the request of Mr. MENENDEZ, the sponsor of S. 384, a bill to authorize ap- of the Senator from Alaska (Ms. MUR- name of the Senator from Idaho (Mr. propriations for fiscal years 2010 KOWSKI) was added as a cosponsor of S. RISCH) was added as a cosponsor of S. through 2014 to provide assistance to 2962, a bill to amend title II of the So- 3262, a bill to amend the Internal Rev- foreign countries to promote food secu- cial Security Act to apply an earnings enue Code of 1986 to provide that the rity, to stimulate rural economies, and test in determining the amount of volume cap for private activity bonds to improve emergency response to food monthly insurance benefits for individ- shall not apply to bonds for facilities crises, to amend the Foreign Assist- uals entitled to disability insurance for the furnishing of water and sewage ance Act of 1961, and for other pur- benefits based on blindness. facilities. poses. S. 2986 S. 3265 S. 777 At the request of Ms. LANDRIEU, the At the request of Mr. MCCAIN, the At the request of Mr. BROWN of Ohio, name of the Senator from Mississippi names of the Senator from Montana the name of the Senator from New (Mr. WICKER) was added as a cosponsor (Mr. BAUCUS) and the Senator from Hampshire (Mrs. SHAHEEN) was added of S. 2986, a bill to authorize the Ad- Kansas (Mr. ROBERTS) were added as as a cosponsor of S. 777, a bill to pro- ministrator of the Small Business Ad- cosponsors of S. 3265, a bill to restore mote industry growth and competitive- ministration to waive interest for cer- Second Amendment rights in the Dis- ness and to improve worker training, tain loans relating to damage caused trict of Columbia. retention, and advancement, and for by Hurricane Katrina, Hurricane Rita, S.J. RES. 28 other purposes. Hurricane Gustav, or Hurricane Ike. At the request of Mr. DODD, the name S. 781 S. 3039 of the Senator from Pennsylvania (Mr. At the request of Mr. ROBERTS, the At the request of Mr. UDALL of New SPECTER) was added as a cosponsor of name of the Senator from Kansas (Mr. Mexico, the name of the Senator from S.J. Res. 28, a joint resolution pro- BROWNBACK) was added as a cosponsor Louisiana (Mr. VITTER) was added as a posing an amendment to the Constitu- of S. 781, a bill to amend the Internal cosponsor of S. 3039, a bill to prevent tion of the United States relating to Revenue Code of 1986 to provide for col- drunk driving injuries and fatalities, contributions and expenditures in- legiate housing and infrastructure and for other purposes. tended to affect elections. grants. S. 3065 S. CON. RES. 61 S. 1055 At the request of Mr. LIEBERMAN, the At the request of Mr. NELSON of Flor- At the request of Mrs. BOXER, the name of the Senator from Minnesota ida, his name was added as a cosponsor names of the Senator from Vermont (Ms. KLOBUCHAR) was added as a co- of S. Con. Res. 61, a concurrent resolu- (Mr. SANDERS), the Senator from Ar- sponsor of S. 3065, a bill to amend title tion expressing the sense of the Con- kansas (Mr. PRYOR) and the Senator 10, United States Code, to enhance the gress that general aviation pilots and from Minnesota (Mr. FRANKEN) were readiness of the Armed Forces by re- industry should be recognized for the added as cosponsors of S. 1055, a bill to placing the current policy concerning contributions made in response to grant the congressional gold medal, homosexuality in the Armed Forces, Haiti earthquake relief efforts. collectively, to the 100th Infantry Bat- referred to as ‘‘Don’t Ask, Don’t Tell’’, talion and the 442nd Regimental Com- with a policy of nondiscrimination on f bat Team, United States Army, in rec- the basis of sexual orientation. ognition of their dedicated service dur- S. 3181 STATEMENTS ON INTRODUCED ing World War II. At the request of Mrs. BOXER, the BILLS AND JOINT RESOLUTIONS S. 1611 name of the Senator from Connecticut By Mrs. BOXER: At the request of Mr. GREGG, the (Mr. DODD) was added as a cosponsor of S. 3268. A bill to amend title 49, name of the Senator from Connecticut S. 3181, a bill to protect the rights of United States Code, to prohibit individ- (Mr. LIEBERMAN) was added as a co- consumers to diagnose, service, main- uals who have worked on motor vehicle sponsor of S. 1611, a bill to provide col- tain, and repair their motor vehicles, safety issues at NHTSA from assisting lective bargaining rights for public and for other purposes. motor vehicles manufacturers with

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2760 CONGRESSIONAL RECORD — SENATE April 28, 2010 NHTSA compliance matters for a pe- to fines not less than $100,000 and the for Highway and Auto Safety; Jack riod of 3 years after terminating em- amount equal to 90 percent annual Gillis, Director of Public Affairs, Con- ployment at NHTSA, and for other pur- compensation paid to that employee. sumer Federation of America; Andrew poses; to the Committee on Commerce, Finally, our bill requires the Inspec- McGuire, Executive Director, Trauma Foundation; Ellen Bloom, Director, Science, and Transportation. tor General to conduct a comprehen- Federal Policy and Washington Office, Mrs. BOXER. Mr. President, last Au- sive study of DOT’s policies related to Consumers Union. gust, California Highway Patrol Officer post-employment restrictions for em- Mark Saylor, his wife, 13 year old ployees who handle motor vehicle safe- By Mr. MCCAIN: daughter, and brother-in-law were ty related work beyond NHTSA at S. 3270. A bill to include the county killed in a tragic car accident that DOT, and DOT employees who handle of Mohave, in the State of Arizona, as shocked the community of San Diego all safety related work across all trans- an affected area for purposes of making and the nation. portation modes. My legislation gives claims under the Radiation Exposure Their vehicle, a rental Lexus ES350, DOT the authority to take appropriate Compensation Act based on exposure to reached speeds of 120 mph as the family action as warranted. atmospheric nuclear testing; to the desperately called 911 in vain for help. We need to ensure that consumer Committee on the Judiciary. This tragedy should not have occurred, safety is not compromised by cozy rela- Mr. MCCAIN. Mr. President, I am and sadly, it is just one of many exam- tionships between government regu- pleased to introduce legislation that ples across California and the country lators and industry. I am proud to in- would amend the Radiation Exposure of accidents involving Toyota and troduce this bill to protect the public Compensation Act, RECA, by adding Lexus vehicles. and look forward to working with my Mohave County, AZ, to the list of These accidents raise serious ques- colleagues to enact this legislation as counties eligible for downwinder com- tions about the effectiveness of the re- quickly as possible. pensation. A similar proposal was in- calls and whether Toyota and federal Mr. President, I ask unanimous con- troduced in the House of Representa- regulators at the National Highway sent that a letter of support be printed tives by Congressman TRENT FRANKS. Traffic Safety Administration, NHTSA, in the RECORD. I’m hopeful this bill will help close a took appropriate and timely action to There being no objection, the mate- painful chapter for those Arizonans protect the public. rial was ordered to be printed in the who were arguably the most affected At the Senate Commerce Committee RECORD, as follows: by nuclear weapons testing during the hearing on the Toyota recalls this past APRIL 27, 2010. Cold War. March, I called attention to reports Hon. BARBARA BOXER, In 1990, Congress enacted the Radi- that former NHTSA employees now U.S. Senate, ation Exposure Compensation Act to employed by Toyota worked to limit Washington, DC. compensate victims or their survivors Toyota’s recall. In fact, Toyota’s own DEAR SENATOR BOXER; We are writing to who suffered certain illnesses caused strongly endorse the Motor Vehicle Safety by fallout exposure ‘‘down wind’’ of at- internal documents stated that the Integrity Employment Act you are spon- company had achieved a ‘‘win’’ by ‘‘ne- soring that will close a legal loophole con- mospheric nuclear weapons testing in gotiating an equipment recall’’ on the cerning post-government employment in the the 1940’s and lasting into the 1960’s. Camry and Lexus ES vehicles that auto industry by former government per- Among various requirements, com- saved Toyota $100 million. It is a sonnel of the National Highway Traffic Safe- pensation eligibility is limited to cer- shocking example of a company count- ty Administration (NHTSA). Congressional tain affected counties which are spe- ing profit wins at the expense of the hearings and media investigations into high cifically listed in the law. Astonish- public’s health and safety. speed crashes and deaths caused by unin- ingly, despite its close proximity to the tended acceleration, the premature closure Nevada Test Site, the original RECA The revolving door that exists be- of agency defect investigations and the sub- tween government regulators at sequent recall of ten million vehicles by law and its subsequent amendments NHTSA and the auto industry is unac- Toyota Motor Corporation exposed a revolv- never listed Mohave County proper as ceptable, and it puts consumers at risk. ing door of former NHTSA regulators rep- an affected area. I believe the people of In fact, the Washington Post reported resenting the automaker in safety matters Mohave County deserve to see righted that as many as 33 former NHTSA and before the agency. this unjust policy which has obstructed Department of Transportation, DOT, Activities by former NHTSA employees their ability to qualify for compensa- employees continue to work on vehicle who are subsequently hired by automakers tion. have the potential to jeopardize the agency’s I understand that several of my col- recalls and safety compliance, capac- investigations, rulemakings, and oversight ities that deal directly with NHTSA’s functions. These ethics issues need to be cor- leagues have proposed similar RECA oversight authority over the industry. rected and addressed in legislation. It is es- amendments based on data suggesting That is why I am introducing the sential and expected that NHTSA conducts that their home states were also ‘‘down Motor Vehicle Safety Integrity Em- impartial analyses of all vehicle safety wind’’ of nuclear weapons testing. In ployment Act, to end the revolving issues. It is critical to protect the integrity addition, my colleague, Senator TOM door that exists between our vehicle of the agency’s investigatory and enforce- UDALL, has introduced a far reaching safety regulatory agency—NHTSA— ment role, as well as to ensure public safety legislative proposal to vastly expand when the agency sets safety standards. Your the RECA program. I would hope that and the auto industry. legislation is needed in order to restore the My bill prohibits NHTSA employees trust of the American public in our govern- as these various RECA proposals ad- from working for auto manufacturers ment regulators and ensure the safety of vance through the legislative process, for three years in any job that involves millions of vehicles that families depend on Congress gives thorough consideration written or oral communication with to travel to work, transport children to to an April 2005 report by the National NHTSA, representing or advising a school and to bring us home safely. Academy of Sciences, NAS, that as- manufacturer with respect to motor Your legislation, when enacted, will pre- sessed, among other things, whether vehicle safety, or assisting a manufac- vent undue industry influence in the agen- additional geographic areas should be cy’s enforcement and regulatory decision- added to the RECA program. The NAS turer with responding to a request for making and address an unacceptable defect information from NHTSA. in current ethics restrictions for former study revealed a much wider area of ra- This restriction applies to high rank- NHTSA employees. Thank you for your lead- dioactive fallout then originally identi- ing NHTSA officials, as well as any in- ership. fied when the RECA law was first writ- dividual whose responsibilities during Sincerely, ten. The report also recommended re- the last 12 months at NHTSA included Joan Claybrook, President Emeritus, placing the geographic area criteria administrative, managerial, legal, su- Public Citizen; Clarence Ditlow, Execu- with a new science-based process for pervisory, or senior technical responsi- tive Director, Center for Auto Safety; determining compensation eligibility, Janette Fennell, Founder & President, a method similar to what’s used in the bility for any motor vehicle safety-re- KIDS AND CARS; Rosemary Shahan, lated program. President, Consumers for Auto Reli- Radiation Exposed-Veterans Com- My legislation provides penalties for ability and Safety; Ami Gadhia, Policy pensation Act and the Energy Employ- individuals and manufacturers who vio- Counsel, Consumers Union; Jacqueline ees Occupational Illness Compensation late the law. Manufacturers are subject S. Gillan, Vice President, Advocates Program Act. I believe it is worthwhile

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2761 for policy makers to consider the rec- a suitcase of readers with them on in- In 2009, Haiti’s future was beginning ommendations of the NAS report. vestigations. This is an unnecessary to strengthen. A U.S. trade preference In the meantime and until a com- burden that can be easily addressed. program, known as the Haitian Hemi- prehensive overhaul of RECA is devel- This particular burden came to light spheric Opportunity through Partner- oped, I will work within the param- recently in the context of the tragic ship Encouragement Act, or HOPE II, eters of the existing RECA law in my Toyota crashes. During hearings held created incentives to increase textile efforts to ensure that the people of Mo- by Chairman ROCKEFELLER in the Com- and apparel production in Haiti. As a have County are treated fairly in this merce Committee, we learned that al- result, Haiti’s textile and apparel sec- matter. I encourage my colleagues to though Toyotas were equipped with tor was growing, creating new jobs and support this bill. EDRs, until recently they were only a viable economic future. able to be read by one computer in the But on January 12, 2010, Haiti was By Mr. UDALL of New Mexico: entire United States. That is why, in struck by a 7.0 magnitude earthquake S. 3271. A bill to amend section 30166 addition to requiring recorders in all that took hundreds of thousands of of title 49, United States Code, to re- vehicles for sale in the United States, lives, left a million people homeless, quire the installation of event data re- the Vehicle Safety Improvements Act and shattered Haiti’s burgeoning econ- corders in all motor vehicles manufac- will also require that recorders be eas- omy. As Haiti recovers from this devas- tured for sale in the United States, and ily read by a universal tool regardless tation, we must unite with our neigh- for other purposes; to the Committee of make or model of the vehicle. bor to help provide the strength that it on Commerce, Science, and Transpor- In addition, NHTSA’s rule also fails needs to recover and rebuild. tation. to address medium- and heavy-duty ve- Today, Senator GRASSLEY and I in- Mr. UDALL of New Mexico. Mr. hicles. My legislation would require troduce the Haiti Economic Lift Pro- President, I rise today to introduce leg- NHTSA to issue a rule addressing those gram Act of 2010—the HELP Act—to islation that I believe will help im- vehicles as well. While they comprise a strengthen Haiti’s path to economic re- prove the safety of automobile drivers small percentage of the vehicle miles covery. Congressmen LEVIN, CAMP, and and passengers. The legislation, the traveled on an annual basis, medium- RANGEL are also introducing a com- Vehicle Safety Improvements Act, and heavy-duty vehicles are overrepre- panion bill in the House. would, among other things, require all sented in crashes resulting in fatali- The HELP Act would build on the automobiles sold in the United States ties. In these crashes, an event data re- success of the HOPE Act by expanding be equipped with an event data re- corder would be a useful tool during access to the U.S. market for textile corder, an EDR. the crash investigation in determining and apparel products from Haiti. As a Event data recorders provide a report the cause of the crash. result, it would create incentives for of a vehicle’s operating statistics— Finally, my bill protects privacy by immediate and long-term private in- things like the throttle position and ensuring that the data can only be vestment in Haiti, which would in turn speed of the vehicle—during the last accessed with the vehicle owner’s per- create sustainable jobs and a stable seconds before and immediately after a mission when authorized by a court or economy. The HELP Act would also ex- crash. a legal proceeding or by a government tend all of our trade preference pro- They serve a similar function as the motor vehicle safety agency. grams for Haiti to 2020, ensuring that black boxes that are in each airplane Adding these recorders would not Haiti could rely on these tariff benefits by documenting critical information cost much. In their rulemaking, as it plans its own economic future. leading up to an incident. Unlike black NHTSA estimated the cost for the As we considered the needs of Haiti, boxes, an EDR doesn’t record the manufacturer to install an event data we were also watchful of the needs of voices of the vehicle occupants. It sim- recorder at just over $2 per vehicle. our domestic textile industry. We ply preserves the vehicle’s internal op- That is a small price to pay for the worked closely with the domestic in- erating data. critical information that can ulti- dustry for months to craft a bill that The information stored by an EDR mately be used to save lives in the fu- would not hurt our own workers, even can be crucial in determining what ture. as we help others. happened in the last few seconds prior Vehicle crashes are horrible and of- The HELP Act represents a landmark to a crash and the moments imme- tentimes tragic. They result in dam- union among the Senate, the House, diately after. If a vehicle doesn’t have age, injuries, and too often fatalities. Democrats, Republicans, and the do- a recorder, or if the data is not easily They create congestion and cost our mestic textile industry to help Haiti accessible, this information can be economy billions of dollars each year. recover from its devastation. This lost. That leaves local and Federal in- Event data recorders will not prevent union resulted in an unprecedented bill vestigators little to work with as they crashes, but they will help to deter- that will help Haiti emerge from the try to determine whether a vehicle mine what caused the crash and, in the earthquake stronger than ever. malfunction was to blame. Unfortu- case of a vehicle malfunction, help to I urge my colleagues to join this nately, while the majority of vehicles identify solutions to improve vehicle union and quickly approve this legisla- in the United States are currently performance. In the end, the data they tion. equipped with these recorders, many provide will serve to ensure a safer Mr. GRASSLEY. Mr. President, I still do not have them. travel environment for all. have come to the floor to speak about In 2006, the National Highway Traffic I urge my Senate colleagues to join a bill that Senator BAUCUS and I have Safety Administration, NHTSA, cre- me in this important effort to improve introduced today. It’s called the Haiti ated a framework for the type of infor- vehicle safety. I look forward to work- Economic Lift Program Act of 2010. mation to be recorded by event data re- ing with them and my chairman, The purpose of our bill is to help corders in light-duty vehicles, but it Chairman ROCKEFELLER, who has been Haiti recover from the devastation it stopped short of requiring the record- a champion on issues of transportation suffered in the massive earthquake ers. If the vehicle manufacturer in- safety, to pass the Vehicle Safety Im- that struck the country in January. stalls an event data recorder in a car, provements Act this year. How we respond to natural disasters it must comply with the rule. But says a lot about ourselves, whether it’s there is no requirement that the manu- By Mr. BAUCUS (for himself and flooding in Iowa or an earthquake in facturer install the recorder in the first Mr. GRASSLEY): Haiti. place. S. 3275. A bill to extend the Carib- The idea behind the bill is simple. NHTSA’s 2006 rule further requires bean Basin Economic Recovery Act, to First, we extend current trade pref- the manufacturers to ensure that a provide customs support services to erences for Haiti through fiscal year tool to read the recorder is commer- Haiti, and for other purposes; to the 2020, to provide more certainty for cially available. Today, while there are Committee on Finance. companies doing business either in tools commercially available, there is Mr. BAUCUS. Mr. President, one of Haiti or with Haitian partners. no one universal tool—creating a chal- Aesop’s Fables teaches us, ‘‘In union Second, we grant additional duty-free lenge for investigators who must carry there is strength.’’ access to the U.S. market for targeted

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2762 CONGRESSIONAL RECORD — SENATE April 28, 2010 categories of textile and apparel prod- Haiti with a path forward for long-term eco- fishing vessels. At the same time, any ucts. That will help to draw more in- nomic recovery in the wake of its dev- unauthorized withdrawals from CCF vestment into Haiti’s economy and astating earthquake, it also takes into ac- accounts were subject to severe inter- thereby promote long-term job cre- count various sensitivities from the perspec- est and other penalties. tive of the U.S. textile industry. The program was a success—the CCF ation, economic development, and po- For example, the bill grants significant in- litical stability. creases in duty free treatment through a sys- program helped the U.S. industry build Our bill is a bipartisan, bicameral tem of Tariff Preference Levels (TPLs) but a modern state-of-the-art fishing fleet. compromise. It is the product of 3 also institutes sub-limits on highly sensitive Unfortunately, that fleet has now be- months of collaborative negotiations products that can be exported under the come overcapitalized—a problem that among the chairmen and ranking mem- TPLs. The sub-limits were a key priority for has been exacerbated as managers have bers of the Senate Finance and House the domestic industry and will prevent over become more and more concerned concentration of exports in one or two key Ways and Means committees and with about potential overfishing and have areas that could be particularly damaging to begun to reduce the amount of fish representatives of the U.S. textile in- U.S. producers. In addition, the bill extends dustry and the Haitians themselves. that they allow fishers to catch each the current Caribbean Basin Trade Partner- year. As a result, the U.S. commercial We also reached out to members of ship Act (CBTPA) through 2020. This exten- Congress who have constituent textile sion will help to provide long-term certainty fishing fleet now has more harvesting and apparel interests, to ensure that for a program that is of significant value for capacity than the U.S. fishery resource their concerns were addressed. U.S. and Western Hemispheric trading part- can sustainably support. The problem Our ability to reach agreement on ners. now is that the monies that remain on Obviously, we take very seriously the im- deposit in CCF accounts represent a po- the bill is a testament to the good will pact that additional duty free imports may and good faith of all those involved in tential for further overcapitalization have on U.S. producers and workers as well at a time when less capitalization is our negotiations. as our Western Hemispheric customers. Not- needed. Yet the CCF regulations cur- The result reflects a careful bal- ing those concerns, we also recognize that rently penalize withdrawals made for ancing of interests, including Haiti’s the devastating circumstances in Haiti pro- anything other than a bigger or better interest in spurring more investment duced an exceptional case that motivated Congress to develop a quick response and boat. in its economy, the interests of our The issue now is what to do about the trading partners in Central America in have worked with the Committee to develop a package that strikes an acceptable bal- money that remains ‘‘stranded’’ in ex- maintaining existing trade relation- ance. We must stress, however, that this isting CCF accounts. Ironically, just as ships, and our own domestic textile in- package does not set a precedent for Any fu- the current generation of fishers is get- terests. ture trade preference legislation. ting ready to retire, the program puts We took special care to address the For all these reasons, we are encouraging heavy penalties on them if they take sensitivities of our domestic producers. our Congressional members that represent money out of their CCF accounts with- In fact, I have a letter here from the the nearly 500,000 U.S. textile and apparel workers to approve this legislation in an ex- out using it for anything other than to two leading U.S. textile industry orga- further capitalize an already overcapi- nizations. Their letter expresses sup- peditious manner under suspension of the rules in the House and by unanimous consent talized fleet. port for our bill and encourages the in the Senate. The resulting situation is problem- Senate to pass the bill in an expedi- Sincerely, atic for the fishers, the industry and tious manner by unanimous consent. AUGUSTINE D. TANTILLO, the resource. That’s why I am intro- Finally, I want to make special men- Executive Director, ducing legislation today along with my tion of my colleagues from states with American Manufac- colleague Senator MURKOWSKI—to ad- textile interests, and to thank them for turing Trade Action dress the problem of stranded capital their constructive input in developing Coalition (AMTAC). still on deposit in various CCF ac- this legislation. CASS M. JOHNSON, President, National counts and to relieve the pressure to Without their engagement and sup- Council of Textile increase further capitalization of the port, we would not have arrived at the Organizations fishing fleet. My legislation will enable compromise bill that is being intro- (NCTO). CCF fund-holders to make a one-time duced today in both the Senate and the withdrawal from their CCF accounts House of Representatives. Mr. WYDEN (for himself and Ms. without requiring them to re-invest it This is a balanced bill that addresses MURKOWSKI): in the fishing industry. Instead, they an urgent priority in the Western S. 3276. A bill to provide an election will be required to pay the taxes due on Hemisphere. to terminate certain capital construc- the monies withdrawn, but without I ask my colleagues to give the bill tion funds without penalties; to the having to pay interest or other pen- their unanimous support when it comes Committee on Finance. alties on such withdrawals. Those before the Senate. Mr. WYDEN. Mr. President, today I funds would be freed up for other pur- Mr. President, I ask unanimous con- am introducing a bill to reform the poses, including starting a new busi- sent that a letter of support be printed Capital Construction Fund to address ness and finding other ways to support in the RECORD. major changes in the Nation’s fisheries and create jobs. An income-averaging There being no objection, the mate- and to allow the Nation’s fishers to formula would be applied to the with- rial was ordered to be printed in the have access to needed funds, to prevent drawals so as to avoid an excessive tax RECORD, as follows: over-fishing and to help create jobs. rate on the one-time withdrawal. The APRIL 26, 2010. The Capital Construction Fund, CCF, fishers taking advantage of such an op- Hon. MAX BAUCUS, program was originally developed at a portunity to take money out of their Chairman, Committee on Finance, U.S. Senate, time when American fishes were hav- CCF accounts penalty free would then Dirksen Senate Office Building, Wash- ing a hard time competing with highly be required to close their CCF accounts ington, DC. efficient foreign fishing vessels—mod- and would be prohibited from further Hon. CHARLES GRASSLEY, ern boats that often harvested US fish- Ranking Member, Committee on Finance, U.S. participation in the program. This is a Senate, Dirksen Senate Office Building, ery resources within sight of our own win-win-win situation. The fisher gets Washington, DC. shores. The initial idea behind the CCF to take the money out of his CCF with- DEAR CHAIRMAN BAUCUS and RANKING MEM- Program was to enable US fishers to out having to pay penalties and inter- BER GRASSLEY: As representatives of the accumulate the funds necessary to de- est, but still pays the taxes when due; United States textile industry, we are writ- velop a modern fishing fleet by allow- the Government gets taxes on the ing in regard to the Haiti Economic Lift Pro- ing them to deposit a portion of their withdrawals; and the resource and the gram Act of 2010, a bill to provide enhanced fishing-related earnings into a CCF fishers who remain in the fishery avoid market access for apparel products manufac- savings account on a tax-deferred tured in Haiti. further capitalization of an already After lengthy negotiations with your basis. Under the CCF program, monies over-capitalized industry. staffs, we are pleased that we were able to subsequently withdrawn from the CCF I look forward to working with Sen- reach an acceptable compromise on this im- accounts would remain tax free as long ator MURKOWSKI, the fishing commu- portant legislation. While the bill provides as they were invested in new or rebuilt nity and the bill’s other supporters to

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2763 advance this legislation to the Presi- ‘‘(i) A special temporary capital construc- for the person’s last taxable year ending on dent’s desk. tion fund shall be established without regard or before December 31, 2012; and Mr. President, I ask unanimous con- to any agreement under section 53503 and ‘‘(C) shall apply to all amounts in the cap- sent that the text of the bill be printed without regard to any eligible or qualified ital construction fund with respect to which vessel. the election is made. in the RECORD. There being no objection, the text of ‘‘(ii) Section 53505 shall not apply and no ‘‘(b) ELECTION TO AVERAGE INCOME.—At the amounts may be deposited into a special election of an individual who has received a the bill was ordered to be printed in temporary capital construction fund other distribution described in subsection (a), for the RECORD, as follows: than amounts received pursuant to a dis- purposes of section 1301 of the Internal Rev- S. 3276 tribution described in subparagraph (A)(i). enue Code of 1986— Be it enacted by the Senate and House of Rep- ‘‘(iii) In the case of any amounts distrib- ‘‘(1) such individual shall be treated as en- resentatives of the United States of America in uted from a special temporary capital con- gaged in a fishing business, and Congress assembled, struction fund directly to a capital construc- ‘‘(A) such distribution shall be treated as SECTION 1. ELECTION TO TERMINATE CERTAIN tion fund of the taxpayer established under income attributable to a fishing business for CAPITAL CONSTRUCTION FUNDS. section 53505— such taxable year.’’. (a) AMENDMENTS TO CHAPTER 535 OF TITLE ‘‘(I) no gain or loss shall be recognized; (2) CONFORMING AMENDMENTS.— 46, UNITED STATES CODE.— ‘‘(II) the limitation under section 53505 (A) Section 53511 of title 46, United States (1) IN GENERAL.—Chapter 535 of title 46, shall not apply with respect to any amount Code, is amended by striking ‘‘section 53513’’ United States Code, is amended by adding at so transferred; and inserting ‘‘sections 53513 and 53518’’. the end the following new section: ‘‘(III) such amounts shall not reduce tax- (B) The table of sections for chapter 535 of ‘‘§ 53518. Election to terminate able income under section 53507(a)(1); and title 46, United States Code, is amended by ‘‘(a) IN GENERAL.— ‘‘(IV) for purposes of section 53511(e), such inserting after the item relating to section ‘‘(1) ELECTION.—Any person who has en- amounts shall be treated as deposited in the 53517 the following new item: tered into an agreement under this chapter capital construction fund on the date that ‘‘53518. Election to terminate.’’. such funds were deposited in the capital con- with respect to a vessel operated in the fish- (b) AMENDMENTS TO THE INTERNAL REVENUE eries of the United States may make an elec- struction fund with respect to which the election under paragraph (1) was made. CODE OF 1986.— tion under this paragraph to terminate the (1) IN GENERAL.—Section 7518 of the Inter- capital construction fund established under ‘‘(iv) In the case of any amounts distrib- uted from a special temporary capital con- nal Revenue Code of 1986 is amended by add- such agreement. ing at the end the following new subsection: ‘‘(2) EFFECT OF ELECTION ON INDIVIDUALS.— struction fund pursuant to an election under paragraph (1), clauses (i) and (ii) of para- ‘‘(j) ELECTION TO TERMINATE CAPITAL CON- In the case of an individual who makes an STRUCTION FUNDS.— election under paragraph (1) with respect to graph (2)(A) shall not apply to so much of such amounts as are attributable to earnings ‘‘(1) IN GENERAL.—Any person who has en- a capital construction fund— tered into an agreement under chapter 535 of ‘‘(A) any amount remaining in such capital accrued after the date of the establishment of such special temporary capital construc- title 46 of the United States Code, with re- construction fund on the applicable date spect to a vessel operated in the fisheries of shall be distributed to such individual as a tion fund. ‘‘(v) Any amount not distributed from a the United States may make an election nonqualified withdrawal, except that— under this paragraph to terminate the cap- ‘‘(i) in computing the tax on such with- special temporary capital construction fund before the due date of the tax return (includ- ital construction fund established under such drawal, except as provided in paragraph (4), agreement. subsections (c)(3)(B) and (f) of section 53511 ing extension) for the last taxable year of the individual ending before January 1, 2012, ‘‘(2) EFFECT OF ELECTION ON INDIVIDUALS.— shall not apply; and In the case of an individual who makes an ‘‘(ii) the taxpayer may elect to average the shall be treated as distributed to the tax- payer on the day before such due date as if election under paragraph (1) with respect to income from such withdrawal as provided in a capital construction fund, any amount re- subsection (b); and an election under paragraph (1) were made maining in such capital construction fund on ‘‘(B) such individual shall not be eligible to by the taxpayer on such day. the applicable date shall be distributed to enter into, directly or indirectly, any future ‘‘(C) REGULATIONS.—The joint regulations such individual as a nonqualified with- agreement to establish a capital construc- shall provide rules for— drawal, except that— tion fund under this chapter with respect to ‘‘(i) assigning the amounts received by the ‘‘(A) in computing the tax on such with- a vessel operated in the fisheries of the shareholders, partners, or members in a dis- drawal, except as provided in paragraph (4), United States. tribution described in subparagraph (A)(i) to paragraphs (3)(C)(ii) and (6) of subsection (g) ‘‘(3) EFFECT OF ELECTION FOR ENTITIES.— the accounts described in section 53508(a) in shall not apply, and ‘‘(A) IN GENERAL.—In the case of a person special temporary capital construction (other than an individual) who makes an funds; and ‘‘(B) the taxpayer may elect to average the election under paragraph (1)— ‘‘(ii) preventing the abuse of the purposes income from such withdrawal as provided in ‘‘(i) the total amount in the capital con- of this section. paragraph (7). struction fund on the applicable date shall be ‘‘(4) TAX BENEFIT RULE.—Rules similar to ‘‘(3) EFFECT OF ELECTION FOR ENTITIES.— distributed to the shareholders, partners, or the rules under section 53511(f)(3) shall apply ‘‘(A) IN GENERAL.—In the case of a person members of such person in accordance with for purposes of determining tax liability on (other than an individual) who makes an the terms of the instruments setting forth any nonqualified withdrawal under para- election under paragraph (1)— the ownership interests of such shareholders, graph (2)(A), (3)(A)(v), or (3)(B)(v). ‘‘(i) the total amount in the capital con- partners, or members; ‘‘(5) APPLICABLE DATE.—For purposes of struction fund on the applicable date shall be ‘‘(ii) each shareholder, partner, or member this subsection, the term ‘applicable date’ distributed to the shareholders, partners, or shall be treated as having established a spe- means— members of such person in accordance with cial temporary capital construction fund and ‘‘(A) with respect to any capital construc- the terms of the instruments setting forth having deposited amounts received in the tion fund which has a balance of less than the ownership interests of such shareholders, distribution into such special temporary cap- $1,000,000 on the date that an election under partners, or members, ital construction fund; paragraph (1) was made, the date of such ‘‘(ii) each shareholder, partner, or member ‘‘(iii) no gain or loss shall be recognized election; and shall be treated as having established a spe- with respect to such distribution; ‘‘(B) with respect to any other capital con- cial temporary capital construction fund and ‘‘(iv) the basis of any shareholder, partner, struction fund, the last day of the taxable having deposited amounts received in the or member in the person shall not be reduced year which includes the date of the enact- distribution into such special temporary cap- as a result of such distribution; ment of this section. ital construction fund, ‘‘(v) any amounts not distributed pursuant ‘‘(6) ELECTION.—Any election under para- ‘‘(iii) no gain or loss shall be recognized to clause (i) shall be distributed in a non- graph (1)— with respect to such distribution, qualified withdrawal; and ‘‘(A) may only be made— ‘‘(iv) the basis of any shareholder, partner, ‘‘(vi) such person shall not be eligible to ‘‘(i) by a person who maintains a capital or member in the person shall not be reduced enter into, directly or indirectly, any future construction fund with respect to a vessel as a result of such distribution, and agreement to establish a capital construc- operated in the fisheries of the United States ‘‘(v) any amounts not distributed pursuant tion fund under this chapter with respect to on the date of the enactment of this section; to clause (i) shall be distributed as a non- a vessel operated in the fisheries of the or qualified withdrawal. United States. ‘‘(ii) by a person who maintains a capital ‘‘(B) SPECIAL TEMPORARY CAPITAL CON- ‘‘(B) SPECIAL TEMPORARY CAPITAL CON- construction fund which was established pur- STRUCTION FUNDS.—For purposes of this sec- STRUCTION FUNDS.—For purposes of this chap- suant to paragraph (3)(A)(ii) as a result of an tion, a special temporary capital construc- ter, a special temporary capital construction election made by an entity in which such tion fund shall be treated in the same man- fund shall be treated in the same manner as person was a shareholder, partner, or mem- ner as a capital construction fund estab- a capital construction fund established under ber; lished under section 53503 of title 46, United section 53503, except that the following rules ‘‘(B) shall be made not later than the due States Code, except that the following rules shall apply: date of the tax return (including extensions) shall apply:

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2764 CONGRESSIONAL RECORD — SENATE April 28, 2010 ‘‘(i) Subsection (a) shall not apply and no ‘‘(7) ELECTION TO AVERAGE INCOME.—At the SENATE RESOLUTION 504—EX- amounts may be deposited into a special election of an individual who has received a PRESSING THE CONDOLENCES OF temporary capital construction fund other distribution described in paragraph (2), for THE SENATE TO THOSE AF- than amounts received pursuant to a dis- purposes of section 1301— FECTED BY THE TRAGIC EVENTS tribution described in subparagraph (A)(i). ‘‘(A) such individual shall be treated as en- ‘‘(ii) In the case of any amounts distrib- gaged in a fishing business, and FOLLOWING THE TORNADO THAT uted from a special temporary capital con- ‘‘(B) such distribution shall be treated as HIT CENTRAL MISSISSIPPI ON struction fund directly to a capital construc- income attributable to a fishing business for APRIL 24, 2010 tion fund of the taxpayer established under such taxable year.’’. Mr. WICKER (for himself and Mr. section 53505 of title 46, United States Code— (2) CONFORMING AMENDMENT.—Section COCHRAN) submitted the following reso- ‘‘(I) no gain or loss shall be recognized; 7518(g)(1) of such Code is amended by strik- ‘‘(II) the limitation under subsection (a) ing ‘‘subsection (h)’’ and inserting ‘‘sub- lution; which was considered and shall not apply with respect to any amount sections (h) and (j)’’. agreed to: so transferred; f S. RES. 504 ‘‘(III) such amounts shall not reduce tax- Whereas, on the afternoon of April 24, 2010, able income under subsection (c)(1)(A); and SUBMITTED RESOLUTIONS a tornado passed across the State of Mis- ‘‘(IV) for purposes of subsection (g)(5), such sissippi, leaving a path of destruction 11⁄2 amounts shall be treated as deposited in the miles wide; capital construction fund on the date that SENATE RESOLUTION 503—DESIG- Whereas 10 lives were tragically lost, and such funds were deposited in the capital con- many other people were injured; struction fund with respect to which the NATING MAY 21, 2010, AS ‘‘EN- Whereas this tornado was classified as an election under paragraph (1) was made. DANGERED SPECIES DAY’’ EF–4 by the National Weather Service, with ‘‘(iii) In the case of any amounts distrib- Mr. WHITEHOUSE (for himself, Ms. winds estimated at 170 miles per hour; uted from a special temporary capital con- COLLINS, Mr. CARDIN, Mr. WYDEN, Mrs. Whereas the tornado is the largest to struction fund pursuant to an election under EINSTEIN ANDERS ANT strike Mississippi since 2001; paragraph (1), subparagraphs (A) and (B) of F , Mr. S , Ms. C - paragraph (2) shall not apply to so much of WELL, Mr. LEVIN, Mr. KERRY, and Mr. Whereas almost 1,000 homes were damaged such amounts as are attributable to earnings LAUTENBERG) submitted the following or destroyed; accrued after the date of the establishment resolution; which was referred to the Whereas thousands of residents across 18 of such special temporary capital construc- Committee on the Judiciary. counties have been displaced from their tion fund. homes; and S. RES. 503 ‘‘(iv) Any amount not distributed from a Whereas, in response to the declaration by special temporary capital construction fund Whereas, in the United States and around the President of a major disaster, the Ad- before the due date of the tax return (includ- the world, more than 1,000 species are offi- ministrator of the Federal Emergency Man- ing extension) for the last taxable year of cially designated as at risk of extinction and agement Agency has made Federal disaster the individual ending before January 1, 2012, thousands more also face a heightened risk assistance available for the State of Mis- shall be treated as distributed to the tax- of extinction; sissippi to assist in local recovery efforts: payer on the day before such due date as if Whereas the actual and potential benefits Now, therefore, be it an election under paragraph (1) were made that may be derived from many species have Resolved, That the Senate— by the taxpayer on such day the date. not yet been fully discovered and would be (1) expresses its heartfelt condolences to ‘‘(C) REGULATIONS.—The joint regulations permanently lost if not for conservation ef- the families and friends of those who lost shall provide rules for— forts; their lives in the terrible events of April 24, ‘‘(i) assigning the amounts received by the Whereas recovery efforts for species such 2010; shareholders, partners, or members in a dis- as the whooping crane, Kirtland’s warbler, (2) extends its wishes for a full recovery for tribution described in subparagraph (A)(i) to the peregrine falcon, the gray wolf, the gray all those who were injured; the accounts described in subsection (d)(1) in whale, the grizzly bear, and others have re- (3) extends its thanks to the first respond- special temporary capital construction sulted in great improvements in the viabil- ers, firefighters, law enforcement, and med- funds; and ity of such species; ical personnel who took quick action to pro- ‘‘(ii) preventing the abuse of the purposes Whereas saving a species requires a com- vide aid and comfort to the victims; and of this section. bination of sound research, careful coordina- (4) stands with the people of Mississippi as ‘‘(4) TAX BENEFIT RULE.—Rules similar to tion, and intensive management of conserva- they begin the healing process following this the rules under subsection (g)(6)(B) shall tion efforts, along with increased public terrible event. apply for purposes of determining tax liabil- awareness and education; f ity on any nonqualified withdrawal under Whereas 2⁄3 of endangered or threatened paragraph (2), (3)(A)(v), or (3)(B)(iv). species reside on private lands; AMENDMENTS SUBMITTED AND ‘‘(5) APPLICABLE DATE.—For purposes of Whereas voluntary cooperative conserva- PROPOSED this subsection, the term ‘applicable date’ tion programs have proven to be critical to means— habitat restoration and species recovery; and SA 3731. Mr. WYDEN submitted an amend- ‘‘(A) with respect to any capital construc- Whereas education and increasing public ment intended to be proposed by him to the tion fund which has a balance of less than awareness are the first steps in effectively bill S. 3217, to promote the financial sta- $1,000,000 on the date that an election under informing the public about endangered spe- bility of the United States by improving ac- paragraph (1) was made, the date of such cies and species restoration efforts: Now, countability and transparency in the finan- election; and therefore, be it cial system, to end ‘‘too big to fail’’, to pro- ‘‘(B) with respect to any other capital con- Resolved, That the Senate— tect the American taxpayer by ending bail- struction fund, the last day of the taxable (1) designates May 21, 2010, as ‘‘Endangered outs, to protect consumers from abusive fi- year which includes the date of the enact- Species Day’’; nancial services practices, and for other pur- ment of this subsection. (2) encourages schools to spend at least 30 poses; which was ordered to lie on the table. ‘‘(6) ELECTION.—Any election under para- minutes on Endangered Species Day teach- SA 3732. Mr. CARDIN (for himself, Mr. graph (1)— ing and informing students about— LUGAR, Mr. DURBIN, Mr. SCHUMER, Mr. FEIN- ‘‘(A) may only be made— (A) threats to endangered species around GOLD, Mr. MERKLEY, and Mr. JOHNSON) sub- ‘‘(i) by a person who maintains a capital the world; and mitted an amendment intended to be pro- construction fund with respect to a vessel (B) efforts to restore endangered species, posed by him to the bill S. 3217, supra; which operated in the fisheries of the United States including the essential role of private land- was ordered to lie on the table. on the date of the enactment of this sub- owners and private stewardship in the pro- SA 3733. Mr. BROWN of Ohio (for himself, section, or tection and recovery of species; Mr. KAUFMAN, Mr. CASEY, Mr. WHITEHOUSE, ‘‘(ii) by a person who maintains a capital (3) encourages organizations, businesses, Mr. MERKLEY, Mr. HARKIN, Mr. SANDERS, and construction fund which was established pur- private landowners, and agencies with a Mr. BURRIS) submitted an amendment in- suant to subparagraph (3)(A)(ii) as a result of shared interest in conserving endangered tended to be proposed by him to the bill S. an election made by an entity in which such species to collaborate in developing edu- 3217, supra; which was ordered to lie on the person was a shareholder, partner, or mem- cational information for use in schools; and table. ber, (4) encourages the people of the United SA 3734. Mr. CARDIN submitted an amend- ‘‘(B) shall be made not later than the due States— ment intended to be proposed by him to the date of the tax return (including extensions) (A) to become educated about, and aware bill S. 3217, supra; which was ordered to lie for the person’s last taxable year ending on of, threats to species, success stories in spe- on the table. or before December 31, 2012, and cies recovery, and opportunities to promote SA 3735. Mr. CARDIN submitted an amend- ‘‘(C) shall apply to all amounts in the cap- species conservation worldwide; and ment intended to be proposed by him to the ital construction fund with respect to which (B) to observe the day with appropriate bill S. 3217, supra; which was ordered to lie the election is made. ceremonies and activities. on the table.

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2765 TEXT OF AMENDMENTS ‘‘(D) the term ‘resource extraction issuer’ ‘‘(A) IN GENERAL.—To the extent prac- Mr. WYDEN submitted an means an issuer that— ticable, the Commission shall make avail- SA 3731. ‘‘(i) is required to file an annual report able online, to the public, a compilation of amendment intended to be proposed by with the Commission; and the information required to be submitted him to the bill S. 3217, to promote the ‘‘(ii) engages in the commercial develop- under the rules issued under paragraph financial stability of the United States ment of oil, natural gas, or minerals; (2)(A). by improving accountability and trans- ‘‘(E) the term ‘interactive data format’ ‘‘(B) OTHER INFORMATION.—Nothing in this parency in the financial system, to end means an electronic data format in which paragraph shall require the Commission to ‘‘too big to fail’’, to protect the Amer- pieces of information are identified using an make available online information other ican taxpayer by ending bailouts, to interactive data standard; and than the information required to be sub- ‘‘(F) the term ‘interactive data standard’ mitted under the rules issued under para- protect consumers from abusive finan- means standardized list of electronic tags cial services practices, and for other graph (2)(A). that mark information included in the an- ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— purposes; which was ordered to lie on nual report of a resource extraction issuer. There are authorized to be appropriated to the table; as follows: ‘‘(2) DISCLOSURE.— the Commission such sums as may be nec- At the end of subtitle A of title I, add the ‘‘(A) INFORMATION REQUIRED.—Not later essary to carry out this subsection.’’. following: than 270 days after the date of enactment of SEC. 996. SENSE OF CONGRESS. SEC. 122. DISCLOSURE OF FINANCIAL INTERESTS the Restoring American Financial Stability It is the sense of Congress that— IN THE DECLINE IN VALUE OF FI- Act of 2010, the Commission shall issue final (1) the President should work with foreign NANCIAL PRODUCTS. rules that require each resource extraction governments, including members of the (a) RECOMMENDATIONS BY COUNCIL.—Not issuer to include in the annual report of the Group of 8 and the Group of 20, to establish later than 180 days after the date of enact- resource extraction issuer information relat- domestic requirements that companies under ment of this Act, the Council shall make rec- ing to any payment made by the resource ex- the jurisdiction of each government publicly ommendations to the primary financial reg- traction issuer, a subsidiary of the resource disclose any payments made to a govern- ulatory agencies to require any seller of a fi- extraction issuer, or an entity under the con- ment relating to the commercial develop- nancial product or instrument to disclose to trol of the resource extraction issuer to a ment of oil, natural gas, and minerals; and the purchaser or prospective purchaser of foreign government or the Federal Govern- (2) the President should commit the United that product, whether the seller has any di- ment for the purpose of the commercial de- States to become a Candidate Country of the rect financial interest in the decline in value velopment of oil, natural gas, or minerals, Extractive Industries Transparency Initia- of the product. including— tive. (b) PROCEDURES AND IMPLEMENTATION.— ‘‘(i) the type and total amount of such pay- The procedural and implementation provi- ments made for each project of the resource Mr. BROWN of Ohio (for sions of subsections (b) and (c) of section 120 extraction issuer relating to the commercial SA 3733. shall apply to recommendations of the Coun- development of oil, natural gas, or minerals; himself, Mr. KAUFMAN, Mr. CASEY, Mr. cil under this section. and WHITEHOUSE, Mr. MERKLEY, Mr. HAR- ‘‘(ii) the type and total amount of such KIN, Mr. SANDERS, and Mr. BURRIS) sub- SA 3732. Mr. CARDIN (for himself, payments made to each government. mitted an amendment intended to be Mr. LUGAR, Mr. DURBIN, Mr. SCHUMER, ‘‘(B) INTERACTIVE DATA FORMAT.—The rules proposed by him to the bill S. 3217, to Mr. FEINGOLD, Mr. MERKLEY, and Mr. issued under subparagraph (A) shall require promote the financial stability of the JOHNSON) submitted an amendment in- that the information included in the annual United States by improving account- tended to be proposed by him to the report of a resource extraction issuer be sub- mitted in an interactive data format. ability and transparency in the finan- bill S. 3217, to promote the financial cial system, to end ‘‘too big to fail’’, to stability of the United States by im- ‘‘(C) INTERACTIVE DATA STANDARD.— ‘‘(i) IN GENERAL.—The rules issued under protect the American taxpayer by end- proving accountability and trans- subparagraph (A) shall establish an inter- ing bailouts, to protect consumers parency in the financial system, to end active data standard for the information in- from abusive financial services prac- ‘‘too big to fail’’, to protect the Amer- cluded in the annual report of a resource ex- tices, and for other purposes; which ican taxpayers by ending bailouts, to traction issuer. was ordered to lie on the table; as fol- protect consumers from abusive finan- ‘‘(ii) ELECTRONIC TAGS.—The interactive data standard shall include electronic tags lows: cial services practices, and for other On page 92, strike lines 8 through 12 and in- purposes; which was ordered to lie on that identify, for each payment made by a resource extraction issuer to a foreign gov- sert the following: the table; as follows: ernment or the Federal Government— (ii) liquidity requirements; On page 1030, between lines 9 and 10, insert ‘‘(I) the amount of the payment; (iii) resolution plan and credit exposure re- the following: ‘‘(II) the currency used to make the pay- port requirements; and Subtitle K—Resource Extraction Issuers ment; (iv) concentration limits. SEC. 995. DISCLOSURE OF PAYMENTS BY RE- ‘‘(III) the financial period in which the On page 105, between lines 1 and 2, insert SOURCE EXTRACTION ISSUERS. payment was made; the following: Section 13 of the Securities Exchange Act ‘‘(IV) the business segment of the resource (i) LEVERAGE RATIO FOR BANK HOLDING of 1934 (15 U.S.C. 78m), as amended by this extraction issuer that made the payment; COMPANIES AND FINANCIAL COMPANIES.— Act, is amended by adding at the end the fol- ‘‘(V) the government that received the pay- (1) AMENDMENT.—The Bank Holding Com- lowing: ment, and the country in which the govern- pany Act of 1956 (12 U.S.C. 1841 et seq.) is ‘‘(o) DISCLOSURE OF PAYMENTS BY RE- ment is located; amended by adding at the end the following: SOURCE EXTRACTION ISSUERS.— ‘‘(VI) the project of the resource extraction ‘‘SEC. 13. LIMITS ON LEVERAGE. ‘‘(1) DEFINITIONS.—In this subsection— issuer to which the payment relates; and ‘‘(a) DEFINITIONS.—In this section, the fol- ‘‘(A) the term ‘commercial development of ‘‘(VII) such other information as the Com- lowing definitions shall apply: oil, natural gas, or minerals’ includes the ac- mission may determine is necessary or ap- ‘‘(1) FINANCIAL COMPANY.—The term ‘finan- quisition of a license, exploration, extrac- propriate in the public interest or for the cial company’ means any nonbank financial tion, processing, export, and other signifi- protection of investors. company, as that term is defined in section cant actions relating to oil, natural gas, or ‘‘(D) INTERNATIONAL TRANSPARENCY EF- 102 of the Restoring American Financial Sta- minerals, as determined by the Commission; FORTS.—To the extent practicable, the rules bility Act of 2010, that is supervised by the ‘‘(B) the term ‘foreign government’ means issued under subparagraph (A) shall support Board. a foreign government, an officer or employee the commitment of the Federal Government ‘‘(2) INCORPORATED TERMS.—The terms ‘av- of a foreign government, an agent of a for- to international transparency promotion ef- erage total consolidated assets’ and ‘tier 1 eign government, a company owned by a for- forts relating to the commercial develop- capital’ have the meanings given those terms eign government, or a person who will pro- ment of oil, natural gas, or minerals. in part 225 of title 12, Code of Federal Regu- vide a personal benefit to an officer of a gov- ‘‘(E) EFFECTIVE DATE.—With respect to lations, or any successor thereto. ernment if that person receives a payment, each resource extraction issuer, the final ‘‘(b) LEVERAGE RATIO REQUIREMENTS FOR as determined by the Commission; rules issued under subparagraph (A) shall BANK HOLDING COMPANIES AND FINANCIAL ‘‘(C) the term ‘payment’— take effect on the date on which the resource COMPANIES.— ‘‘(i) means a payment that is— extraction issuer is required to submit an ‘‘(1) LEVERAGE RATIO.—A bank holding ‘‘(I) made to further the commercial devel- annual report relating to the fiscal year of company or financial company may not opment of oil, natural gas, or minerals; and the resource extraction issuer that ends not maintain tier 1 capital in an amount that is ‘‘(II) not de minimis; and earlier than 1 year after the date on which less than 6 percent of the average total con- ‘‘(ii) includes taxes, royalties, fees, li- the Commission issues final rules under sub- solidated assets of the bank holding com- censes, production entitlements, bonuses, paragraph (A). pany or financial holding company. and other material benefits, as determined ‘‘(3) PUBLIC AVAILABILITY OF INFORMA- ‘‘(2) BALANCE SHEET LEVERAGE RATIO.—A by the Commission; TION.— bank holding company or financial company

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2766 CONGRESSIONAL RECORD — SENATE April 28, 2010 may not maintain less than 6 percent of tier Senate and the Committee on Financial ‘‘(A) with respect to a bank holding com- 1 capital for all outstanding balance sheet li- Services of the House of Representatives a pany— abilities, as required to be recorded under plan detailing the manner by which the bank ‘‘(i) the total assets of the banking holding section 13(p) of the Securities Exchange Act holding company or financial company will company; minus of 1934. be brought into compliance with subsection ‘‘(ii) the sum of— ‘‘(c) EXEMPTIONS.— (b). ‘‘(I) the tier 1 capital of the bank holding ‘‘(1) IN GENERAL.—The Board may adjust ‘‘(3) REPORTS TO CONGRESS.— company, taking into account any off-bal- the leverage ratio requirements under sub- ‘‘(A) WRITTEN REPORTS.—At the end of each ance-sheet liabilities; and section (b) for any class of institutions, 60-day period following the date on which the ‘‘(II) the FDIC-assessed deposits of the based upon the size or activity of such class Board submits a plan under paragraph (2) bank holding company; and of institutions. No adjustment made under during which a bank holding company or fi- ‘‘(B) with respect to a financial company— this paragraph may allow an institution to nancial company remains in violation of sub- ‘‘(i) the total assets of the financial com- carry less capital than is required under sub- section (b), the Board shall submit to the pany; minus section (b). Committee on Banking, Housing, and Urban ‘‘(ii) the tier 1 capital of the financial com- ‘‘(2) INTERNATIONAL AGREEMENTS.—Con- Affairs of the Senate and the Committee on pany, taking into account any off-balance- sistent with this subsection, the Board may Financial Services of the House of Rep- sheet liabilities. adjust the leverage ratio requirements under resentatives a report on the compliance of ‘‘(5) TIER 1 CAPITAL.—The term ‘tier 1 cap- subsection (b), as necessary to harmonize the bank holding company or financial hold- ital’ has the meaning given that term in part such ratios with official international agree- ing company with the plan. 225 of title 12, Code of Federal Regulations, ments regarding capital standards, if the ‘‘(B) TESTIMONY.—At the end of each 120- or any successor thereto. Board determines that the capital standards day period following the date on which the ‘‘(b) LIMIT ON NON-DEPOSIT LIABILITIES FOR under such international agreements are Board submits a plan under paragraph (2) BANK HOLDING COMPANIES.— commensurate with the credit, market, oper- during which a bank holding company or fi- ‘‘(1) LIMITS FOR BANK HOLDING COMPANIES.— ational, or other risks posed by the bank nancial company remains in violation of sub- No bank holding company may control non- holding companies or financial companies to section (b), the Board shall testify before the deposit liabilities that exceed 2 percent of which such international agreements apply. Committee on Banking, Housing, and Urban the annual gross domestic product of the ‘‘(3) TEMPORARY EMERGENCY EXEMPTION.— Affairs of the Senate and the Committee on United States. ‘‘(2) LIMITS FOR FINANCIAL COMPANIES.—No ‘‘(A) IN GENERAL.—The appropriate Federal Financial Services of the House of Rep- financial company may control non-deposit banking agency may, in a manner consistent resentatives with respect to the compliance liabilities that exceed 3 percent of the an- with this subsection, grant any bank holding of the bank holding company or financial nual gross domestic product of the United company a temporary emergency exemption holding company with the plan.’’. States. from the leverage ratio requirements under (2) EFFECTIVE DATE.—The amendment ‘‘(3) DETERMINATION OF GROSS DOMESTIC subsection (b), if the appropriate Federal made by this subsection shall take effect 1 PRODUCT.—For purposes of this subsection, banking agency determines such an exemp- year after the date of enactment of this Act. tion is necessary to prevent an imminent On page 497, strike line 9 and all that fol- the annual gross domestic product of the threat to the financial stability of the lows through page 501, line 15, and insert the United States shall be determined using the United States. following: average of the annual gross domestic product of the United States, as calculated by the ‘‘(B) PUBLICATION.— SEC. 620. CONCENTRATION LIMITS FOR BANK ‘‘(i) PUBLICATION REQUIRED.—The appro- HOLDING COMPANIES AND FINAN- Bureau of Economic Analysis of the Depart- priate Federal banking agency shall publish CIAL COMPANIES. ment of Commerce, during the 16 calendar a notice of any exemption granted under this (a) DEPOSIT CONCENTRATION LIMIT.— quarters most recently completed at the paragraph in the Federal Register within a (1) AMENDMENT.—Section 3 of the Bank time of the determination under paragraph reasonable period after granting the exemp- Holding Company Act of 1956 (12 U.S.C. 1842) (1) or (2). tion, and in no case later than 90 days after is amended by striking subsection (f) and in- ‘‘(4) TREATMENT OF INSURANCE COMPANIES.— the date on which the exemption is granted. serting the following: ‘‘(A) IN GENERAL.—Notwithstanding the limits under paragraphs (1) and (2), the ‘‘(ii) CONTENTS.—The notice under clause ‘‘(f) NATIONWIDE CONCENTRATION LIMITS.— (i) shall include— ‘‘(1) CONCENTRATION LIMIT ESTABLISHED.— Board may establish a separate liability ‘‘(I) the name of the bank holding company No single bank holding company may con- limit for a bank holding company or finan- or financial company that is granted an ex- trol more than 10 percent of the total cial company that the Board determines is emption; amount of deposits of all insured depository primarily engaged in the business of insur- ‘‘(II) the reason for the exemption; and institutions in the United States. ance, if the Board determines that such a ‘‘(III) a plan detailing the manner by which ‘‘(2) SALE OR TRANSFER REQUIRED.—The limit is necessary in order to provide for con- the bank holding company will be brought Board shall require any bank holding com- sistent and equitable treatment of the bank into compliance with subsection (b). pany that the Board determines is in viola- holding company or financial company. ‘‘(d) LEVERAGE RATIO REQUIREMENTS FOR tion of paragraph (1) to sell or otherwise ‘‘(B) CONSULTATION.—In establishing a li- OPERATING SUBSIDIARIES OF BANK HOLDING transfer assets to an unaffiliated company, ability limit under subparagraph (A), the COMPANIES AND FINANCIAL COMPANIES.—Not- to the extent that the Board determines is Board shall consult with the State insurance withstanding any other provision of law ap- necessary to bring the company into compli- regulator for any bank holding company or plicable to insured depository institutions, ance with paragraph (1).’’. financial company described in subparagraph not later than 1 year after the date of enact- (2) EFFECTIVE DATE.—The amendment (A) having a subsidiary that is regulated by ment of the Restoring American Financial made by this subsection shall take effect 1 a State insurance regulator. Stability Act of 2010, the Board shall promul- year after the date of enactment of this Act. ‘‘(5) TREATMENT OF FOREIGN DEPOSITS.—The gate regulations establishing leverage ratio (b) SIZE REQUIREMENTS FOR BANK HOLDING Board may exclude from the calculation of requirements under subsection (b) for the op- COMPANIES AND FINANCIAL COMPANIES.— non-deposit liabilities under this subsection erating subsidiaries of bank holding compa- (1) AMENDMENT.—The Bank Holding Com- any foreign or other deposits that are not nies and financial companies. pany Act of 1956 (12 U.S.C. 1841 et seq.), as FDIC-assessed deposits, if the Board deter- ‘‘(e) PROMPT CORRECTIVE ACTION.— amended by this Act, is amended by adding mines that such action is necessary to en- ‘‘(1) AUTHORITIES.—The Board shall require at the end the following: sure the consistent and equitable treatment a bank holding company or financial com- ‘‘SEC. 14. LIMITS ON NON-DEPOSIT LIABILITIES of institutions with international oper- pany that violates subsection (b) to comply FOR BANK HOLDING COMPANIES ations. with the leverage ratio requirements under AND FINANCIAL COMPANIES. ‘‘(c) PROMPT CORRECTIVE ACTION.— subsection (b) by— ‘‘(a) DEFINITIONS.—In this section, the fol- ‘‘(1) AUTHORITIES.—The Board shall require ‘‘(A) selling or otherwise transferring as- lowing definitions shall apply: a bank holding company or financial com- sets or off-balance sheet items to unaffili- ‘‘(1) FDIC-ASSESSED DEPOSITS.—The term pany that violates subsection (a) to comply ated firms; ‘FDIC-assessed deposits’ means the assess- with the limit under subsection (a) by— ‘‘(B) terminating 1 or more activities of ment base of a bank holding company, as ‘‘(A) selling or otherwise transferring as- the bank holding company or financial com- calculated under part 327 of title 12 Code of sets or off-balance-sheet items to unaffili- pany; or Federal Regulations, or any successor there- ated firms; ‘‘(C) imposing conditions on the manner in to. ‘‘(B) terminating 1 or more activities of which the bank holding company or financial ‘‘(2) FINANCIAL COMPANY.—The term ‘finan- the bank holding company or financial com- company conducts an activity of the bank cial company’ means any nonbank financial pany; or holding company or financial company. company supervised by the Board. ‘‘(C) imposing conditions on the manner in ‘‘(2) CORRECTIVE ACTION PLAN.—Not later ‘‘(3) NONBANK FINANCIAL COMPANY.—The which the bank holding company or financial than 60 days after the Board determines that term ‘nonbank financial company’ has the company conducts an activity of the bank a bank holding company or financial holding same meaning as in section 102 of the Restor- holding company or financial company. company has violated subsection (b), the ing American Financial Stability Act of 2010. ‘‘(2) CORRECTIVE ACTION PLAN.—Not later Board shall submit to the Committee on ‘‘(4) NON-DEPOSIT LIABILITIES.—The term than 60 days after the Board determines that Banking, Housing, and Urban Affairs of the ‘non-deposit liabilities’ means— a bank holding company or financial holding

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE April 28, 2010 CONGRESSIONAL RECORD — SENATE S2767 company has violated subsection (a), the may exclude that liability from the balance (1) by striking ‘‘The Attorney General’’ Board shall submit to the Committee on sheet of the issuer only if the issuer discloses and inserting the following: Banking, Housing, and Urban Affairs of the an explanation of— ‘‘(1) IN GENERAL.—The Attorney General’’; Senate and the Committee on Financial ‘‘(i) the nature of the liability and purpose and Services of the House of Representatives a for incurring the liability; (2) by adding at the end the following: plan detailing the manner by which the bank ‘‘(ii) the most likely loss and the maximum ‘‘(2) CIVIL INVESTIGATIVE DEMANDS.—If the holding company or financial company will loss the issuer may incur from the liability; Attorney General has reason to believe that be brought into compliance with subsection ‘‘(iii) whether any other person has re- any person may be in possession, custody, or (a). course against the issuer with respect to the control of any documentary material or in- ‘‘(3) REPORTS TO CONGRESS.— liability and, if so, the conditions under formation relevant to an investigation under ‘‘(A) WRITTEN REPORTS.—At the end of each which such recourse may occur; and this title, the Attorney General may, before 60-day period following the date on which the ‘‘(iv) whether the issuer has any con- commencing a civil proceeding under this Board submits a plan under paragraph (1) tinuing involvement with an asset financed section, issue in writing and cause to be during which a bank holding company or fi- by the liability or any beneficial interest in served upon the person, a civil investigative nancial company remains in violation of sub- the liability. demand. The authority to issue and enforce section (a), the Board shall submit to the ‘‘(3) COMPLIANCE.—The Commission shall civil investigative demands under this para- Committee on Banking, Housing, and Urban issue rules to ensure compliance with this graph shall be identical to the authority of Affairs of the Senate and the Committee on subsection that allow for enforcement by the the Attorney General under section 3733 of Financial Services of the House of Rep- Commission and civil liability under this title 31, United States Code, except that the resentatives a report on the compliance of title and the Securities Act of 1933.’’. provisions of that section relating to qui tam the bank holding company or financial hold- realtors shall not apply.’’. Mr. CARDIN submitted an ing company with the plan. SA 3734. f ‘‘(B) TESTIMONY.—At the end of each 120- amendment intended to be proposed by day period following the date on which the him to the bill S. 3217, to promote the NOTICE OF HEARING Board submits a plan under paragraph (1) financial stability of the United States COMMITTEE ON ENERGY AND NATURAL during which a bank holding company or fi- by improving accountability and trans- RESOURCES nancial company remains in violation of sub- parency in the financial system, to end Mr. BINGAMAN. Mr. President, I section (a), the Board shall testify before the Committee on Banking, Housing, and Urban ‘‘too big to fail’’, to protect the Amer- would like to announce for the infor- Affairs of the Senate and the Committee on ican taxpayer by ending bailouts, to mation of the Senate and the Public Financial Services of the House of Rep- protect consumers from abusive finan- that a business meeting has been resentatives with respect to the compliance cial services practices, and for other scheduled before the Committee on En- of the bank holding company or financial purposes; which was ordered to lie on ergy and Natural Resources on Thurs- holding company with the plan. the table; as follows: day, May 6, 2010, at 9:30 a.m., imme- ‘‘SEC. 15. CAPITAL ASSESSMENT PROGRAM. On page 837, between lines 2 and 3, insert diately preceding the Full Committee ‘‘(a) ANNUAL CAPITAL ASSESSMENT RE- the following: Hearing. QUIRED.—Not later than 1 year after the date (b) PROTECTION FOR EMPLOYEES OF NATION- The purpose of this business meeting of enactment of the Restoring American Fi- ALLY RECOGNIZED STATISTICAL RATING ORGA- is to consider cleared legislative agen- nancial Stability Act of 2010, and annually NIZATIONS.—Section 1514A(a) of title 18, da items, and the nominations of Phil- thereafter, the Board shall conduct a capital United States Code, is amended— assessment of each bank holding company (1) by inserting ‘‘or nationally recognized ip D. Moeller and Cheryl A. LaFleur, to and financial company, to estimate the statistical rating organization (as defined in be Members of the Federal Energy Reg- losses, revenues, and reserve needs for the section 3(a) of the Securities Exchange Act ulatory Commission. bank holding company or financial company. of 1934 (15 U.S.C. 78c),’’ after ‘‘78o(d)),’’; and For further information, please con- ‘‘(b) REPORT.—The Board shall submit an (2) by inserting ‘‘or organization’’ after tact Sam Fowler at (202) 224–7571 or annual report on the results of the capital ‘‘such company’’. assessments under subsection (a) to the Sec- Amanda Kelly at (202) 224–6836. retary of the Treasury, the Committee on SA 3735. Mr. CARDIN submitted an f Banking, Housing, and Urban Affairs of the amendment intended to be proposed by AUTHORITY FOR COMMITTEES TO Senate, and the Committee on Financial Services of the House of Representatives.’’. him to the bill S. 3217, to promote the MEET (2) EFFECTIVE DATE.—The amendment financial stability of the United States COMMITTEE ON HEALTH, EDUCATION, LABOR, made by this subsection shall take effect 3 by improving accountability and trans- AND PENSIONS years after the date of enactment of this parency in the financial system, to end Mr. DURBIN. Mr. President, I ask Act. ‘‘too big to fail’’, to protect the Amer- unanimous consent that the Com- On page 969, between lines 4 and 5, insert ican taxpayer by ending bailouts, to mittee on Health, Education, Labor, the following: protect consumers from abusive finan- SEC. 919C. FINANCIAL REPORTING. and Pensions be authorized to meet Section 13 of the Securities Exchange Act cial services practices, and for other during the session of the Senate to con- of 1934 (15 U.S.C. 78m), as amended by this purposes; which was ordered to lie on duct a hearing entitled ‘‘ESEA Reau- Act, is amended by adding at the end the fol- the table; as follows: thorization: Standards and Assess- lowing: On page 1014, between lines 5 and 6, insert ments’’ on April 28, 2010. The hearing ‘‘(p) STANDARD BALANCE SHEET CALCULA- the following: will commence at 2 p.m. in room 430 of TION FOR REPORTS.— SEC. 989C. CIVIL INVESTIGATIVE DEMANDS. the Dirksen Senate Office Building. ‘‘(1) STANDARD ESTABLISHED.—Not later (a) EQUAL CREDIT OPPORTUNITY ACT.—Sec- The PRESIDING OFFICER. Without than 1 year after the date of enactment of tion 706(h) of the Equal Credit Opportunity the Restoring American Financial Stability Act (15 U.S.C. 1691e(h)) is amended— objection, it is so ordered. Act of 2010, the Commission, or a standard (1) by inserting ‘‘(1)’’ after ‘‘(h)’’; and COMMITTEE ON HOMELAND SECURITY AND setter designated by and under the oversight (2) by adding at the end the following: GOVERNMENTAL AFFAIRS of the Commission, shall establish a stand- ‘‘(2) If the Attorney General has reason to Mr. DURBIN. Mr. President, I ask ard requiring each that each issuer that is believe that any person may be in posses- unanimous consent that the Com- required to submit reports to the Commis- sion, custody, or control of any documentary mittee on Homeland Security and Gov- sion under this section record all assets and material or information relevant to an inves- ernmental Affairs be authorized to liabilities of the issuer on the balance sheet tigation under this title, the Attorney Gen- meet during the session of the Senate of the issuer. eral may, before commencing a civil pro- ‘‘(2) CONTENTS.—The standard established ceeding under this subsection, issue in writ- on April 28, 2010, at 10 a.m. under paragraph (1) shall require that— ing and cause to be served upon the person, The PRESIDING OFFICER. Without ‘‘(A) the recorded amount of assets and li- a civil investigative demand. The authority objection, it is so ordered. abilities reflect a reasonable assessment by to issue and enforce civil investigative de- COMMITTEE ON THE JUDICIARY the issuer of the most likely outcomes with mands under this paragraph shall be iden- Mr. DURBIN. Mr. President, I ask respect to the amount of assets and liabil- tical to the authority of the Attorney Gen- unanimous consent that the Com- ities, given information available at the eral under section 3733 of title 31, United mittee on the Judiciary be authorized time of the report; States Code, except that the provisions of to meet during the session of the Sen- ‘‘(B) each issuer record any financing of as- that section relating to qui tam realtors ate on April 28, 2010, at 2:30 p.m., in sets for which the issuer has more than mini- shall not apply.’’. mal economic risks or rewards; and (b) FAIR HOUSING ACT.—Section 814(c) of room SD–226 of the Dirksen Senate Of- ‘‘(C) if an issuer cannot determine the the Fair Housing Act (42 U.S.C. 3614(c)) is fice Building, to conduct a hearing en- amount of a particular liability, the issuer amended— titled ‘‘Nominations.’’

VerDate Mar 15 2010 03:45 Jul 08, 2010 Jkt 079060 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S28AP0.REC S28AP0 mmaher on DSKD5P82C1PROD with CONG-REC-ONLINE S2768 CONGRESSIONAL RECORD — SENATE April 28, 2010 The PRESIDING OFFICER. Without ation of Calendar No. 359, H.R. 5146, an The preamble was agreed to. objection, it is so ordered. act to prohibit a cost-of-living adjust- The resolution, with its preamble, AD HOC SUBCOMMITTEE ON CONTRACTING ment for Members of Congress in 2011, reads as follows: OVERSIGHT an act that is identical to S. 3244, S. RES. 504 Mr. DURBIN. Mr. President, I ask which passed the Senate on April 22; Whereas, on the afternoon of April 24, 2010, unanimous consent that the Ad Hoc that the bill be read the third time, a tornado passed across the State of Mis- Subcommittee on Contracting Over- passed, and the motion to reconsider be sissippi, leaving a path of destruction 11⁄2 sight of the Committee on Homeland laid upon the table, with any state- miles wide; Security and Governmental Affairs be ments relating to the bill be printed in Whereas 10 lives were tragically lost, and authorized to meet during the session the RECORD, as if read. many other people were injured; The PRESIDING OFFICER. Without Whereas this tornado was classified as an of the Senate on April 28, 2010, at 2:30 EF–4 by the National Weather Service, with p.m. to conduct a hearing entitled, objection, it is so ordered. winds estimated at 170 miles per hour; ‘‘Oversight of Contract Management at The bill (H.R. 5146) was ordered to a Whereas the tornado is the largest to the Centers for Medicare & Medicaid third reading, was read the third time, strike Mississippi since 2001; Services.’’ and passed. Whereas almost 1,000 homes were damaged The PRESIDING OFFICER. Without f or destroyed; objection, it is so ordered. Whereas thousands of residents across 18 AIRPORT AND AIRWAY EXTENSION counties have been displaced from their SUBCOMMITTEE ON PERSONNEL ACT OF 2010 homes; and Mr. DURBIN. Mr. President, I ask Whereas, in response to the declaration by Mrs. BOXER. Mr. President, I ask unanimous consent that the Sub- the President of a major disaster, the Ad- committee on Personnel of the Com- unanimous consent that the Senate ministrator of the Federal Emergency Man- mittee on Armed Services be author- proceed to the immediate consider- agement Agency has made Federal disaster ized to meet during the session of the ation of H.R. 5147, received from the assistance available for the State of Mis- Senate on April 28, 2010, at 10 a.m. House and at the desk. sissippi to assist in local recovery efforts: The PRESIDING OFFICER. The Now, therefore, be it The PRESIDING OFFICER. Without Resolved, That the Senate— objection, it is so ordered. clerk will report the bill by title. The assistant legislative clerk read (1) expresses its heartfelt condolences to SUBCOMMITTEE ON PUBLIC LANDS AND FORESTS the families and friends of those who lost as follows: Mr. DURBIN. Mr. President, I ask their lives in the terrible events of April 24, A bill (H.R. 5147) to amend the Internal 2010; unanimous consent that the Sub- Revenue Code of 1986 to extend the funding committee on Public Lands and For- (2) extends its wishes for a full recovery for and expenditure authority of the Airport and all those who were injured; ests be authorized to meet during the Airway Trust Fund, to amend title 49, United (3) extends its thanks to the first respond- session of the Senate to conduct a States Code, to extend authorizations for the ers, firefighters, law enforcement, and med- hearing on April 28, 2010, at 2:30 p.m., in airport improvement program, and for other ical personnel who took quick action to pro- room SD–366 of the Dirksen Senate Of- purposes. vide aid and comfort to the victims; and fice Building. There being no objection, the Senate (4) stands with the people of Mississippi as The PRESIDING OFFICER. Without proceeded to consider the bill. they begin the healing process following this objection, it is so ordered. Mrs. BOXER. Mr. President, I ask terrible event. SUBCOMMITTEE ON SURFACE TRANSPORTATION unanimous consent that the bill be f AND MERCHANT MARINE INFRASTRUCTURE, read three times, passed, and the mo- ORDERS FOR THURSDAY, APRIL SAFETY, AND SECURITY tion to reconsider be laid upon the 29, 2010 Mr. DURBIN. Mr. President, I ask table, and that any statements relating Mrs. BOXER. Mr. President, I ask unanimous consent that the Sub- to the bill be printed in the RECORD, unanimous consent that when the Sen- committee on Surface Transportation with no intervening action. ate completes its business today, it ad- and Merchant Marine Infrastructure, The PRESIDING OFFICER. Without journ until 12:15 p.m., Thursday, April Safety, and Security of the Committee objection, it is so ordered. 29; that following the prayer and on Commerce, Science, and Transpor- The bill (H.R. 5147) was ordered to a pledge, the Journal of proceedings be tation be authorized to meet during third reading, was read the third time, approved to date, the morning hour be the session of the Senate on April 28, and passed. deemed expired, the time for the two 2010, at 10 a.m., in room 253 of the Rus- f sell Senate Office Building. leaders be reserved for their use later The PRESIDING OFFICER. Without EXPRESSION OF CONDOLENCES TO in the day, and the Senate resume con- objection, it is so ordered. THE PEOPLE IN CENTRAL MIS- sideration of S. 3217, as provided for SISSIPPI under the previous order. f Mrs. BOXER. Mr. President, I ask The PRESIDING OFFICER. Without PRIVILEGES OF THE FLOOR unanimous consent that the Senate objection, it is so ordered. Mr. UDALL of New Mexico. Mr. proceed to the consideration of S. Res. f President, I ask unanimous consent 504, which was submitted earlier today. ADJOURNMENT UNTIL 12:15 P.M. that Kristina Swallow, a fellow in my The PRESIDING OFFICER. The TOMORROW office, be granted floor privileges for clerk will report the resolution by Mrs. BOXER. Mr. President, if there this day. title. is no further business to come before The PRESIDING OFFICER. Without The assistant legislative clerk read the Senate, I ask unanimous consent objection, it is so ordered. as follows: that the Senate stand adjourned under Mr. HARKIN. Mr. President, I ask A resolution (S. Res. 504) expressing the the previous order. unanimous consent that Curtis Sturgill condolences of the Senate to those affected There being no objection, the Senate, and John Forristal of my staff be by the tragic events following the tornado at 7:26 p.m., adjourned until Thursday, granted floor privileges for the dura- that hit central Mississippi on April 24, 2010. April 29, 2010, at 12:15 p.m. tion of today’s proceedings. There being no objection, the Senate The PRESIDING OFFICER. Without proceeded to consider the resolution. f objection, it is so ordered. Mrs. BOXER. Mr. President, I ask NOMINATIONS f unanimous consent that the resolution Executive nominations received by be agreed to, the preamble be agreed the Senate: PROHIBITING MEMBERS OF CON- to, and the motions to reconsider be GRESS A COST-OF-LIVING AD- laid upon the table. THE JUDICIARY JUSTMENT IN 2011 The PRESIDING OFFICER. Without CARLTON W. REEVES, OF MISSISSIPPI, TO BE UNITED STATES DISTRICT JUDGE FOR THE SOUTHERN DISTRICT Mrs. BOXER. Mr. President, I ask objection, it is so ordered. OF MISSISSIPPI, VICE WILLIAM H. BARBOUR, JR., RE- unanimous consent that the Senate The resolution (S. Res. 504) was TIRED. PAUL KINLOCH HOLMES, III, OF ARKANSAS, TO BE proceed to the immediate consider- agreed to. UNITED STATES DISTRICT JUDGE FOR THE WESTERN

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DISTRICT OF ARKANSAS, VICE ROBERT T. DAWSON, RE- THE FOLLOWING NAMED OFFICER FOR APPOINTMENT REAR ADM. (LH) THOMAS H. COPEMAN III TIRED. IN THE UNITED STATES NAVY TO THE GRADE INDICATED REAR ADM. (LH) PHILIP S. DAVIDSON DENISE JEFFERSON CASPER, OF MASSACHUSETTS, TO UNDER TITLE 10, U.S.C., SECTION 624: REAR ADM. (LH) KEVIN M. DONEGAN BE UNITED STATES DISTRICT JUDGE FOR THE DISTRICT REAR ADM. (LH) PATRICK DRISCOLL OF MASSACHUSETTS, VICE REGINALD C. LINDSAY, DE- To be rear admiral REAR ADM. (LH) MARK D. GUADAGNINI CEASED. REAR ADM. (LH) SAMUEL J. COX REAR ADM. (LH) JOSEPH A. HORN REAR ADM. (LH) ANTHONY M. KURTA DEPARTMENT OF JUSTICE THE FOLLOWING NAMED OFFICER FOR APPOINTMENT REAR ADM. (LH) JOSEPH P. MULLOY BARRY R. GRISSOM, OF KANSAS, TO BE UNITED STATES IN THE UNITED STATES NAVY TO THE GRADE INDICATED REAR ADM. (LH) SEAN A. PYBUS ATTORNEY FOR THE DISTRICT OF KANSAS FOR THE UNDER TITLE 10, U.S.C., SECTION 624: REAR ADM. (LH) JOHN M. RICHARDSON TERM OF FOUR YEARS, VICE ERIC F. MELGREN. To be rear admiral REAR ADM. (LH) THOMAS S. ROWDEN CHARLES GILLEN DUNNE, OF NEW YORK, TO BE UNITED REAR ADM. (LH) NORA W. TYSON STATES MARSHAL FOR THE EASTERN DISTRICT OF NEW REAR ADM. (LH) MICHAEL S. ROGERS IN THE ARMY YORK FOR THE TERM OF FOUR YEARS, VICE EUGENE THE FOLLOWING NAMED OFFICER FOR APPOINTMENT JAMES CORCORAN. IN THE UNITED STATES NAVY TO THE GRADE INDICATED THE FOLLOWING NAMED OFFICERS FOR REGULAR AP- UNITED STATES SENTENCING COMMISSION UNDER TITLE 10, U.S.C., SECTION 624: POINTMENT IN THE GRADES INDICATED IN THE UNITED STATES JUDGE ADVOCATE GENERAL’S CORPS UNDER PATTI B. SARIS, OF MASSACHUSETTS, TO BE CHAIR OF To be rear admiral TITLE 10, U.S.C., SECTIONS 531 AND 3064: THE UNITED STATES SENTENCING COMMISSION, VICE REAR ADM. (LH) DAVID G. SIMPSON WILLIAM K. SESSIONS III. To be lieutenant colonel PATTI B. SARIS, OF MASSACHUSETTS, TO BE A MEM- THE FOLLOWING NAMED OFFICER FOR APPOINTMENT BER OF THE UNITED STATES SENTENCING COMMISSION IN THE UNITED STATES NAVY TO THE GRADE INDICATED CARL E. STEINBECK FOR A TERM EXPIRING OCTOBER 31, 2015, VICE WILLIAM UNDER TITLE 10, U.S.C., SECTION 624: K. SESSIONS III, TERM EXPIRED. To be major DABNEY LANGHORNE FRIEDRICH, OF MARYLAND, TO To be rear admiral ANDREW S. DREIER BE A MEMBER OF THE UNITED STATES SENTENCING REAR ADM. (LH) DAVID A. DUNAWAY JENNIFER M. MCKENNA COMMISSION FOR A TERM EXPIRING OCTOBER 31, 2015. (REAPPOINTMENT) THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT IN THE NAVY IN THE NAVY IN THE UNITED STATES NAVY TO THE GRADE INDICATED UNDER TITLE 10, U.S.C., SECTION 624: THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT THE FOLLOWING NAMED OFFICER FOR APPOINTMENT To be rear admiral IN THE GRADES INDICATED IN THE REGULAR NAVY IN THE UNITED STATES NAVY TO THE GRADE INDICATED UNDER TITLE 10, U.S.C., SECTION 531: WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND REAR ADM. (LH) TERRY J. BENEDICT RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: REAR ADM. (LH) THOMAS J. ECCLES To be captain To be vice admiral THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT WILLIAM T. CARNEY IN THE UNITED STATES NAVY TO THE GRADE INDICATED ROBERT A. ROCHFORD REAR ADM. ALLEN G. MYERS UNDER TITLE 10, U.S.C., SECTION 624: WILLIAM B. SHERER THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED STATES NAVY TO THE GRADE INDICATED To be rear admiral To be lieutenant commander WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND REAR ADM. (LH) JOSEPH P. AUCOIN SONTHAYA CHANSIPAENG RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: REAR ADM. (LH) PATRICK H. BRADY STEPHEN J. FICHTER To be vice admiral REAR ADM. (LH) TED N. BRANCH ERIC J. ROZEK REAR ADM. (LH) PAUL J. BUSHONG JOHN B. SEARS REAR ADM. MICHAEL H. MILLER REAR ADM. (LH) JAMES F. CALDWELL, JR. ANDREA S. STILLER

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HONORING SAFE HARBOR MEN- this year and this group a success. It is not a ties, but also to encourage students to pursue TORING, INC. FOR THEIR EX- coincidence that this congressional tribute the necessary secondary and post-secondary TRAORDINARY WORK IN THE celebrates two generations of service. Each of education. According to a recent survey of COMMUNITY you is trusted with the precious gift of free- alumni of the ACE program, nine in ten of dom. ACE graduates enter a post-secondary institu- HON. STEVE ISRAEL You are the voices of the future and I salute tion. The large majority of ACE students come OF NEW YORK you. God bless you and God bless America. from low-income, minority families. The Summary follows: IN THE HOUSE OF REPRESENTATIVES At the heart of ACE’s highly effective pro- The person whom I interviewed was Kirby gram model is a unique partnership between Wednesday, April 28, 2010 Dean Luke, my stepfather. He married my industry professionals who volunteer their time Mr. ISRAEL. Madam Speaker, I rise today mother four years ago, and ever since that as mentors and the enthusiastic young people to acknowledge a nonprofit organization that day I have had a new found respect for the branches of the government. He ended his ca- who learn all aspects of the integrated con- serves my district, Safe Harbor Mentoring, Inc. reer as a Petty Officer first class/E6/M1 A. To struction professions. Today 1,800 ACE men- Safe Harbor has demonstrated an over- me he has accomplished being a great soldier tors engage 8,000 students in more than 190 whelming amount of commitment to serving who has protected this country with his cities and communities across the nation. the Long Island community. My constituents heart and soul. He accomplished being a The winning team from Lakewood embodies rely on our nonprofits for the vital services great friend to other soldiers in need and he the love of education, teamwork and dedica- they offer. Safe Harbor’s continuous acts of accomplished being a great father for his daughter and me, a girl whom he has only tion to success that ACE hopes to infuse in all selfless efforts are admirable. their participants and today I rise to recognize, I am proud to honor Save Harbor Mentoring, known for a few years. What I have gained from this experience is and direct my colleague’s attention to, these Inc. for their extraordinary work in the commu- that a solider is a man who is honorable, future leaders. nity. strong, intelligent, and loving. He is a man f who puts others before himself. He is a man f whom you would want by your side during THE CONGRESSIONAL YOUTH AD- difficult times. He is a man whom you would IN HONOR AND MEMORY OF VISORY COUNCIL: A LEGACY OF want defending your country. To me one of JOSEPH F. GOLUBSKI, D.O. SERVICE the greatest parts of this country is the men and women we have in all our branches of government. I am thankful that we have HON. DENNIS J. KUCINICH HON. SAM JOHNSON them to defend our country and there is no OF TEXAS one else out there better than them.—Caitlin OF OHIO IN THE HOUSE OF REPRESENTATIVES Zanin. IN THE HOUSE OF REPRESENTATIVES Wednesday, April 28, 2010 f Wednesday, April 28, 2010 Mr. SAM JOHNSON of Texas. Madam CIRT–ACE NATIONAL DESIGN Mr. KUCINICH. Madam Speaker, I rise Speaker, I ask my fellow colleagues to join me COMPETITION today in honor and memory of Joseph F. in congratulating the 2009–2010 Congres- Golubski, D.O. whose lifelong commitment to sional Youth Advisory Council. This year 45 HON. ED PERLMUTTER family, friends and his patients made a perma- students from public, private, and home OF COLORADO nent impact on countless lives from Ohio to schools in grades 9 through 12 made their IN THE HOUSE OF REPRESENTATIVES Wisconsin. voices heard and made a difference in their communities, their country and their Congress. Wednesday, April 28, 2010 Mr. Golubski grew up in a large, lively family These students volunteered their time, effort, Mr. PERLMUTTER. Madam Speaker, on on Cleveland’s southeast side where he and talent to inform me about the important April 26th, 2010 a team of high school stu- learned the values of family, faith and hard issues facing their generation. As young lead- dents from Green Mountain High school in work. He attended St. Stanislaus Elementary ers within their communities and their schools, Lakewood, Colorado successfully competed School and graduated from St. Ignatius High these students boldly represent the promise as one of three finalists in the Fourth Annual School in 1971. Following his graduation from and the hope we all have for their very bright CIRT–ACE National Design Competition, and I Ohio Wesleyan in 1975, he earned a Master future. am proud to say won. Cosponsored by the of Science degree in organic chemistry from President Ronald Reagan said, ‘‘Freedom is Construction Industry Round Table, this com- Cleveland State University. Motivated to pur- never more than one generation away from petition recognizes students participating in sue a career in medicine, he attended the extinction. We didn’t pass it to our children in the ACE Mentor Program of America for their Kansas City College of Osteopathic Medicine the bloodstream. It must be fought for, pro- creativity and character; and their design where he graduated with a Doctorate in Os- tected, and handed on for them to do the projects for their innovation, cost, and teopathic Medicine. same, or one day we will spend our sunset constructability. Mr. Golubski’s focus and dedication on his years telling our children and our children’s The team from Lakewood was selected from career was surpassed only by his love of fam- children what it was once like in the United among their peers for its outstanding design of ily and friends. He was a devoted husband to States where men were free.’’ an ideal school. They have worked hard and Theresa, and was the beloved father of Anne To ensure that the blessing of freedom is enthusiastically over the past school year to and Joseph. He was the son of Rita and the passed from one generation to the next, the develop a practical construction project that late Joseph J., and he was the brother of members of the CYAC spent time interviewing reflects real-world skills and concepts. I would Linda, Robert, Nancy, Steven, Cheryl and a veteran and documenting the experience for like to congratulate students Kristin Bayley Pamela, and the brother-in-law of Deborah, the ‘‘Preserving History Project.’’ Today I’m and Lane Brugman as well as their mentors Debra and Albert. proud to submit the brief summaries provided Nate Talocco and Angela Talocco. Madam Speaker, please join me in honor so the patriotic service of our dedicated vet- The ACE Mentor of America was founded in and remembrance of Joseph F. Golubski, a erans and the thoughtful work of the CYAC 1994 by leading firms of the integrated con- man who lived his life with love for family, de- may be preserved for antiquity in the CON- struction industry as a mentoring and work- votion to friends and dedication to medical GRESSIONAL RECORD. A copy of each sub- force pipeline to attract youth to pursue ca- service. Mr. Golubski’s generous heart, great mitted student summary follows. reers in architecture, construction and engi- sense of humor and joy for living will live for- To each member of the Congressional neering fields. ACE’s mission is not only to ex- ever within the hearts and memories of his Youth Advisory Council, thank you for making pose high school students to career opportuni- family and friends.

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

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00001 Fmt 0626 Sfmt 0634 E:\CR\FM\K28AP8.024 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS E690 CONGRESSIONAL RECORD — Extensions of Remarks April 28, 2010 NATIONAL HEALTHY SCHOOLS energy and maintenance costs. They would in congratulating the 2009–2010 Congres- DAY also provide for an improvement in the quality sional Youth Advisory Council. This year, 45 of ambient light, would reduce exposures to students from public, private, and home SPEECH OF toxic substances and would provide a schools in grades 9 through 12 made their HON. SHEILA JACKSON LEE healthier and safer learning environment for voices heard and made a difference in their OF TEXAS children. communities, their country and their Congress. IN THE HOUSE OF REPRESENTATIVES Healthy and high performance schools are designed with specific environmental factors in These students volunteered their time, effort, Tuesday, April 27, 2010 mind, such as pollutant source controls, prop- and talent to inform me about the important Ms. JACKSON LEE of Texas. Mr. Speaker, er ventilation mechanisms, and moisture and issues facing their generation. As young lead- I rise in strong support of H. Res. 1280, ‘‘Ex- mold controls. It is imperative that school dis- ers within their communities and their schools, pressing the support of the House of Rep- tricts in our nation recognize the importance of these students boldly represent the promise resentatives for the goals and ideals of Na- these new construction and maintenance tech- and the hope we all have for their very bright tional Healthy Schools Day.’’ niques and work to ensure the improvement of future. Let me begin by thanking my colleague student and teacher health across the board. President Ronald Reagan said, ‘‘Freedom is Representative PAUL TONKO for introducing By officially designating April 26, 2010 as never more than one generation away from this piece of legislation into the House of Rep- ‘National Healthy Schools Day,’ we in Con- resentatives as it is important that we diligently gress will be sending a strong message to stu- extinction. We didn’t pass it to our children in work towards the improvement of deteriorating dents and teachers across the nation that we the bloodstream. It must be fought for, pro- public schools across the nation and also work intend to provide healthy and safe buildings tected, and handed on for them to do the towards the improvement of construction tech- for students to learn in. We will also be send- same, or one day we will spend our sunset niques in schools. ing a message to school districts across the years telling our children and our children’s The issue of environmental hazards in nation that it is vitally important to build new children what it was once like in the United schools has been a growing problem over the schools with renewable resource materials States where men were free.’’ last several decades. It is unfortunate that in and energy efficient appliances. To ensure that the blessing of freedom is schools across the nation investigators can We must always ensure that schools and children receive all the necessary tools for passed from one generation to the next, the find unchecked renovations, pesticide members of the CYAC spent time interviewing misapplications, unsafe drinking water, and in- their continued growth. Furthermore it is vitally a veteran and documenting the experience for door air pollutants such as mold infestations. important that we continue to work with state It is unreasonable to think that our children and local agencies including independent the ‘‘Preserving History Project.’’ Today I’m can receive the best possible learning environ- school districts across the nation for the imple- proud to submit the brief summaries provided ment when they are expected to learn under mentation of these measures in public so the patriotic service of our dedicated vet- these types of conditions. schools. erans and the thoughtful work of the CYAC There are also a wide range of problems I would like to again thank my colleague may be preserved for antiquity in the CON- stemming from poor air quality and ventilation Representative PAUL TONKO for introducing H. GRESSIONAL RECORD. A copy of each sub- problems in schools. It has consistently been Res. 1280. I ask my colleagues for their sup- mitted student summary follows. shown that these types of air quality problems port of this legislation as well as their contin- ued support for children, teachers and public To each member of the Congressional can lead to poor concentration, respiratory ill- Youth Advisory Council, thank you for making nesses, learning difficulties, and even cancer schools across the nation. Mr. Speaker, I strongly support H. Res. this year and this group a success. It is not a in students. Today there are approximately 55,000,000 1280 and the rule. coincidence that this congressional tribute children and 7,000,000 adults who spend their f celebrates two generations of service. Each of days in the Nation’s more than 125,000 public HONORING SAUNDERS OMNI- you is trusted with the precious gift of free- and private schools. Students and teachers PRESENT NETWORK INSPIRING dom. also spend an average of 30 to 50 hours per AMERICA’S YOUTH, INC. FOR You are the voices of the future and I salute week in school. THEIR EXTRAORDINARY WORK you. God bless you and God bless America. These numbers equate to nearly 20 percent IN THE COMMUNITY The summary follows: of our nation’s population spending their days in schools across the country—many of which HON. STEVE ISRAEL Sergeant Archie Lee Dyer joined the Ma- are currently facing deterioration in the quality OF NEW YORK rine Corps on November 22, 1967. He was only of their buildings while in the face of massive IN THE HOUSE OF REPRESENTATIVES 19 years old at the time, but he was coura- geous enough to begin his journey as a sol- budget cuts. Therefore it is critical that we Wednesday, April 28, 2010 work together to seek comprehensive solu- dier in the Vietnam War. As a granddaughter Mr. ISRAEL. Madam Speaker, I rise today of Archie Dyer, I have gotten to know his tions to the trend of deteriorating schools in to acknowledge a nonprofit organization that military career well. It’s amazing to sit and our nation. serves my district, Saunders Omnipresent Net- listen to the stories of my sweet, humble’ A recent study showed that approximately work Inspiring America’s Youth, Inc. and brave Pawpaw’s journey as a Marine. His one-third of public school principals reported S.O.N.I.A.Y. has demonstrated an over- life has been shaped greatly because of his that some environmental factors in their whelming amount of commitment to serving time spent in the Vietnam War and I am schools have interfered with classroom in- the Long Island community. My constituents very lucky to have a brave grandfather who struction. This report highlights an increasingly rely on our nonprofits for the vital services was willing to potentially sacrifice his life troubling trend among schools of deteriorating they offer. S.O.N.I.A.Y.’s continuous acts of far our nation. Although he has created a environmental factors. selfless efforts are admirable. successful pool company and had many other In fact school facilities with poor building I am proud to honor Saunders Omnipresent great successes in life, the one that can be quality can result in lower test scores, poor at- Network Inspiring America’s Youth, Inc. for most appreciated is his success as a Marine. tendance, and health problems for students their extraordinary work in the community. I have learned so much about my Pawpaw by doing this interview. I have realized how pas- and staff. These problems are only worsened f for the nearly 9 percent of American students sionate he is about protecting our nation by THE CONGRESSIONAL YOUTH AD- who are known to have asthma. Asthma is the way he continually holds his head high VISORY COUNCIL: A LEGACY OF while telling stories of the ‘‘good old days’’ also the leading cause of absence from school SERVICE when he was a Marine. Although his time in and is aggravated by poor air quality and ven- the Vietnam War was a very trying experi- tilation problems in schools. HON. SAM JOHNSON ence, my Pawpaw never regrets his time To meet these challenges, I believe that we spent braving the war and protecting our should begin working with school districts OF TEXAS IN THE HOUSE OF REPRESENTATIVES great nation. I am so proud of my Pawpaw across the nation towards the implementation for all that he has done and I am grateful to of healthy and high performance schools. Wednesday, April 28, 2010 have had this experience to learn more about These types of schools would be designed Mr. SAM JOHNSON of Texas. Madam this man that I love and respect so much.— to improve indoor environments while reducing Speaker, I ask my fellow colleagues to join me Caitlyn Woolum.

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00002 Fmt 0626 Sfmt 0634 E:\CR\FM\A28AP8.002 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS April 28, 2010 CONGRESSIONAL RECORD — Extensions of Remarks E691 HONORING THE LIFE OF JERALD Fortney, a woman who lived life with grace Further, the bill makes it easier for taxpayers F. TERHORST and a sense of service to community. to settle outstanding payments via the offers- Ms. Fortney was a longtime leader in the in-compromise program. Importantly, H.R. HON. JAMES P. MORAN Cuyahoga County Democratic Party and a 4994 contains provisions to assure the protec- OF VIRGINIA staunch political activist, working on numerous tion of taxpayers, such as requiring the IRS to IN THE HOUSE OF REPRESENTATIVES local and national campaigns. Raised in East notify taxpayers when it suspects that a tax- Wednesday, April 28, 2010 Cleveland, Ms. Fortney lived most of her life in payer’s identity, or a dependent’s identity, has Cleveland Heights, where she became presi- been stolen. Each of the bill’s provisions pro- Mr. MORAN of Virginia. Madam Speaker, I dent of the Cleveland Heights Democratic vides timely assistance and improvements for rise today to honor the life and work of Mr. Club. Her energy spawned from a deep belief taxpayers. Jerald F. terHorst, longtime reporter, col- that the political process was a vehicle for The Taxpayer Assistance Act of 2010 also umnist, and White House Press Secretary, change. She was regularly called upon by adapts the tax system to technology in several who passed away on March 31, 2010 at his candidates seeking her expertise, including ways. By allowing the removal of cell phones home in Asheville, North Carolina. He was U.S. Senate candidate Mary Boyle, for whom from listed property, the bill eliminates a strict, surrounded and supported by his four children she served as Ohio field director. outdated rule. The current rule requires indi- in his final hours. Although she lost her ability to walk in her viduals to keep detailed records regarding cell Born in Grand Rapids in 1922, Mr. terHorst early thirties, she never let a wheelchair slow phones and similar equipment used for busi- discovered his passion for journalism while at her down. Ms. Fortney was a dedicated public ness purposes, imposing unnecessary bur- Michigan State University. While working at servant, serving as executive assistant to dens on companies and taxpayers. The IRS the State News, the MSU college newspaper, former Cuyahoga County Commissioner Mary also will be given the opportunity to utilize the he met Louise, his companion, confidante and Boyle and as the district director for former internet and other forms of mass communica- best friend through 64 years of marriage. Mr. United States Congressman Dennis Eckart. tion to notify taxpayers of ‘‘unclaimed’’ or ‘‘un- terHorst was a proud veteran having served She led the Cuyahoga County Democrats as deliverable’’ funds. as a Marine in World War II. Following the the Executive Director from 1982 to 1985. In Overall H.R. 4994 the Taxpayer Assistance war, Jerry jumped head-first into his passion, 2009, Ms. Fortney retired from service after Act of 2010 continues the tradition of the ‘‘Tax reporting, while working for the Grand Rapids twelve years of managing worker’s compensa- Day’’ bill by providing needed programs, pro- Press. During his time there, he covered fu- tion claims for Cuyahoga County. tection to our taxpayers, and updates to out- ture-President Gerald Ford’s early political ca- Madam Speaker and Colleagues please join dated rules. reer during his successful bid for Congress. A me in honor and remembrance of Elaine Marie f few years later, after a stint in the Marine Fortney, whose great joy for life, energetic Corps, Mr. terHorst took a job as a political HONORING ISRAELI spirit and commitment to community inspired INDEPENDENCE DAY writer for the Detroit News. He moved to their all of us who had the honor of knowing her. Washington bureau and shortly thereafter be- I offer my deep condolences to her sisters, SPEECH OF came bureau chief in 1961. Linda and Jane; to her brothers-in-law, Robert In 1974, when then-Vice President Ford in- HON. EDWARD J. MARKEY and Matthew; her nieces, Tricia and Elizabeth; herited the presidency after Nixon’s resigna- OF MASSACHUSETTS her nephews, Shawn and Zachary; and her tion, Mr. terHorst signed on as Press Sec- IN THE HOUSE OF REPRESENTATIVES extended family members and many friends. retary for the man he had been closely cov- Wednesday, April 21, 2010 f ering for close to 20 years. It was to be a Mr. MARKEY of Massachusetts. Mr. Speak- short-lived tenure, however, lasting one SUPPORT OF H.R. 4994 THE TAX- er, I rise to recognize the 62nd anniversary of month. His resignation of the prestigious role PAYER ASSISTANCE ACT OF 2010 the founding of the State of Israel, our great was due to his strong disagreement with ally and friend. President Nixon’s pardoning. In his resignation HON. DANNY K. DAVIS Over 60 years ago, Israel’s pioneers began letter and personal statements in the years fol- OF ILLINOIS to revitalize an ancient land. Today, Israelis lowing, terHorst stated that his decision was IN THE HOUSE OF REPRESENTATIVES remain pioneers at heart—pioneers for pros- ultimately because he believed Ford had dis- perity, democracy and progress. They are Wednesday, April 28, 2010 played a double standard of justice in choos- once again facing challenges in their home- ing to pardon Nixon, yet refusing to pardon Mr. DAVIS of Illinois. Madam Speaker, land with determination and a vision for a bet- conscientious objectors to the Vietnam War. across the United States, April 15th is Tax ter future for their children and for their coun- Jerry’s resignation, risking his entire career, Day. As Americans file their taxes, H.R. 4994, try. was a testament to his strong ethical values the Taxpayer Assistance Act of 2010, im- But even as we celebrate the founding of that had brought him so far in his career. Mr. proves taxpayer programs and protections. the State of Israel, we know that while sov- terHorst received the first Conscience-in- The ‘‘Tax Day’’ bill has a history of broad bi- ereign independence is necessary, it is not Media Award for his decision. Following his partisan support and continues to receive sufficient—security of the State’s people is tenure at the White House, Mr. terHorst reen- large support today. also of paramount importance. The Jewish tered the profession he loved, signing on as a Most importantly for the residents of the 7th homeland must be kept safe, surrounded by syndicated columnist for the Detroit News, fi- District of Illinois and the Nation, the Taxpayer neighbors who respect its right to exist in nally retiring in 1981 after a long and distin- Assistance Act of 2010 includes programs that peace. Through sacrifice, ingenuity and inno- guished career. benefit low-income taxpayers. For example, vation, Israel has managed to thrive for 62 Mr. terHorst was a friend, strong advocate H.R. 4994 increases funding for grants to pro- years in a dangerous and unstable region of for truth and justice, and inspiration to those vide low-income taxpayer clinics. Even in the the world. Let us hope that the conflicts that who knew him and read his work. He forever absence of a specific appropriation, the Volun- have marked the difficult decades since left a mark on reporting and the role of the teer Income Tax Assistance program will be Israel’s founding will subside in the years to White House Press Secretary. Jerry will be available for use because the Secretary of come. deeply missed but his legacy lives on, serving Treasury could allocate up to $20 million of Indeed, Prime Minister Golda Meir believed as an example for future generations of jour- grant funding annually for the program. As that one day there would be peace in Israel, nalists to model themselves after. recommended by the National Taxpayer Advo- because there are mothers and grand- f cate, the bill allows IRS employees to refer mothers—and let me add fathers and grand- IN HONOR AND RECOGNITION OF people to these tax clinics as well. The Tax- fathers—in Egypt, in Jordan, in Syria and the ELAINE MARIE FORTNEY payer Assistance Act of 2010 also improves Palestinian territories who also want their chil- the IRS’s ability to inform taxpayers about the dren and grandchildren to live in peace. Today availability of the Earned Income Tax Credit in is an opportunity to both acknowledge history HON. DENNIS J. KUCINICH prior years, a tax credit that we know helps and look to the future. I am hopeful that some- OF OHIO low income households. In the 7th Congres- day soon Israel and its neighbors will finally IN THE HOUSE OF REPRESENTATIVES sional District alone, over 72,000 people par- find the keys to a peaceful future side-by-side Wednesday, April 28, 2010 ticipated in this program in 2007 with a sav- in mutual security, and the conflict in the Mid- Mr. KUCINICH. Madam Speaker, I rise ings of over $172 million, with most of those dle East becomes relegated to the history today in honor and recognition of Elaine Marie taxpayers earning less than $20,000 a year. books.

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00003 Fmt 0626 Sfmt 9920 E:\CR\FM\A28AP8.004 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS E692 CONGRESSIONAL RECORD — Extensions of Remarks April 28, 2010 I congratulate the State of Israel on its 62nd you is trusted with the precious gift of free- IN HONOR AND RECOGNITION OF anniversary, and offer my sincere wish for its dom. DOROTHY ANN MUELLER peaceful and productive future. You are the voices of the future and I salute f you. God bless you and God bless America. HON. DENNIS J. KUCINICH OF OHIO HONORING PRONTO OF LONG IS- The summary follows: LAND FOR THEIR EXTRAOR- IN THE HOUSE OF REPRESENTATIVES DINARY WORK IN THE COMMU- I interviewed my grandfather, Ted Fal- Wednesday, April 28, 2010 coner, who served for four years, 1948 to 1952, NITY in the Navy as an electrician. He enlisted in Mr. KUCINICH. Madam Speaker, I rise September 1948 as a Seaman Recruit. Ini- today in honor and recognition of Dorothy Ann HON. STEVE ISRAEL tially planning on three years of service, the Mueller upon the joyous occasion of her 80th OF NEW YORK Korean War caused him to serve for four birthday on April 4th, 2010. years instead. After basic training he went IN THE HOUSE OF REPRESENTATIVES Mrs. Mueller grew up in the Tremont neigh- to Treasure Island for the Navy electrician borhood, in a lively household surrounded by Wednesday, April 28, 2010 school. Then he was stationed at the Naval three siblings and her parents, Ann and Joe Mr. ISRAEL. Madam Speaker, I rise today Communication Station on Guam. During Kmetz. Her family’s heritage includes Slovak, this time was when the Korean War broke to acknowledge a nonprofit organization that Hungarian, Russian and Polish. As a young serves my district, PRONTO of Long Island. out and caused him to see a shift in life on Guam. There was more movement of soldiers girl, Mrs. Mueller and her family moved from PRONTO has demonstrated an over- and material; and he participated in training Tremont to the Stockyard neighborhood, whelming amount of commitment to serving exercises to practice loading Marines onto where she enjoyed skating, dancing and going the Long Island community. My constituents naval vessels and practice landings in prepa- to the movies. She graduated from West Tech rely on our nonprofits for the vital services ration, for the Incheon Landing. After High School, and soon thereafter met and they offer. The continuous selfless efforts of months of exercises he was shipped back to married the love of her life, United States those involved with PRONTO are admirable. Hunter’s Point in San Francisco to re-com- Navy Veteran, Frank Mueller. Together they I am proud to honor PRONTO of Long Is- mission an old World War II troop transport raised their children and created a home filled land for their extraordinary work in the com- for active service in the Korean War. After with love, respect, faith and compassion. Mrs. munity. six months his commission ended and he was Mueller successfully raised her family while honorably discharged from the Navy in Sep- f working many different jobs, including office tember 1952 as a 2nd Class Petty Officer. He manager, salesperson, nanny and many oth- THE CONGRESSIONAL YOUTH AD- then went to Texas with his best friend ers. VISORY COUNCIL: A LEGACY OF Wayne, who he met in the Navy, and they Mrs. Mueller’s love of life continues to re- SERVICE both attended college at the University of Texas at Austin. There he earned his Bach- flect to this day. Her kindness, quick smile, elor’s and Master’s Degree. During this time compassionate heart and sense of humor HON. SAM JOHNSON he also met and married Alice Wilkinson, my have made her beloved. She enjoys pinochle, OF TEXAS grandmother, who both have been happily travel, and bocce. Mrs. Mueller’s life is high- IN THE HOUSE OF REPRESENTATIVES married for fifty-three years.—Eric lighted by her abiding faith and sense of serv- Womboldt. Wednesday, April 28, 2010 ice to others. She is a lifelong volunteer at Corpus Christie Church and St. Leo the Great Mr. SAM JOHNSON of Texas. Madam f Church. She even moved to Pittsburgh, Penn- Speaker, I ask my fellow colleagues to join me sylvania when she learned of the city’s great in congratulating the 2009–2010 Congres- PERSONAL EXPLANATION need of missionaries. In Pittsburgh, she volun- sional Youth Advisory Council. This year 45 teered at a homeless shelter, utilizing her tal- students from public, private, and home ents as a cook to prepare and serve meals in schools in grades 9 through 12 made their HON. J. GRESHAM BARRETT the soup kitchen. Mrs. Mueller considers that voices heard and made a difference in their OF SOUTH CAROLINA time as one of the most rewarding periods of communities, their country and their Congress. her life. These students volunteered their time, effort, IN THE HOUSE OF REPRESENTATIVES Madam Speaker, please join me in cele- and talent to inform me about the important Wednesday, April 28, 2010 brating Dorothy Ann Mueller’s 80th birthday. issues facing their generation. As young lead- Affectionately known as Ma, Dor, Auntie, ers within their communities and their schools, Mr. BARRETT of South Carolina. Madam Auntie Dor, Ma Mueller, Grandma and Baba, these students boldly represent the promise Speaker, unfortunately, I missed the following Mrs. Mueller lives life with an open heart, a and the hope we all have for their very bright recorded votes on the House floor the legisla- sparkle in her eye and warm smile. I wish her future. tive week of Tuesday, April 20, 2010. happiness, joy and love on her 80th birthday President Ronald Reagan said, ‘‘Freedom is and always. never more than one generation away from For Tuesday, April 20, 2010, had I been ‘‘Love is life. And if you miss love, you miss extinction. We didn’t pass it to our children in present I would have voted ‘‘aye’’ on rollcall life’’—Leo Buscaglia, one of Mrs. Mueller’s fa- the bloodstream. It must be fought for, pro- vote #212 (on motion to suspend the rules vorite authors. and agree to H. Res. 1257), ‘‘aye’’ on rollcall tected, and handed on for them to do the f same, or one day we will spend our sunset vote #213 (on motion to suspend the rules years telling our children and our children’s and agree to H. Res. 1271). TEMPORARY EXTENSION OF children what it was once like in the United For Wednesday, April 21, 2010, had I been SMALL BUSINESS PROGRAMS States where men were free.’’ present I would have voted ‘‘aye’’ on rollcall SPEECH OF To ensure that the blessing of freedom is vote #214 (on motion to suspend the rules passed from one generation to the next, the and agree to S. 1963), ‘‘aye’’ on rollcall vote HON. SHEILA JACKSON LEE members of the CYAC spent time interviewing #215 (on motion to suspend the rules and OF TEXAS a veteran and documenting the experience for agree to H. Res. 1104), ‘‘aye’’ on rollcall vote IN THE HOUSE OF REPRESENTATIVES the ‘‘Preserving History Project.’’ Today I’m #216 (on ’notion to suspend the rules and proud to submit the brief summaries provided Tuesday, April 27, 2010 agree to H. Res. 1216). so the patriotic service of our dedicated vet- Ms. JACKSON LEE of Texas. Mr. Speaker, erans and the thoughtful work of the CYAC For Thursday, April 22, 2010, had I been I rise in strong support of S. 3253, ‘‘A bill to may be preserved for antiquity in the CON- present I would have voted ‘‘aye’’ on rollcall provide for an additional temporary extension GRESSIONAL RECORD. A copy of each sub- vote #217 (on ordering the previous question of programs under the Small Business Act and mitted student summary follows. to H. Res. 1287), ‘‘aye’’ on rollcall vote #218 the Small Business Investment Act of 1958, To each member of the Congressional (on motion to refer H. Res. 1287), ‘‘aye’’ on and for other purposes.’’ Youth Advisory Council, thank you for making rollcall vote #219 (on motion to instruct Con- Let me begin by thanking my colleague this year and this group a success. It is not a ferees to H.R. 2194), ‘‘aye’’ on rollcall vote Sen. MARY LANDRIEU of Louisiana for intro- coincidence that this congressional tribute #220 (on motion to suspend the rules and ducing this piece of legislation into the House celebrates two generations of service. Each of agree to H. Res. 1270). of Representatives as it is important that we

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00004 Fmt 0626 Sfmt 9920 E:\CR\FM\A28AP8.006 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS April 28, 2010 CONGRESSIONAL RECORD — Extensions of Remarks E693 work together with small businesses across in congratulating the 2009–2010 Congres- HONORING PARENTS FOR MEGAN’S the country towards the recovery of our na- sional Youth Advisory Council. This year 45 LAW FOR THEIR EXTRAOR- tional economy. students from public, private, and home DINARY WORK IN THE COMMU- Small businesses have long been the bed- schools in grades 9 through 12 made their NITY rock of our Nation’s economy and many would voices heard and made a difference in their agree that they still are. Even with the advent communities, their country and their Congress. HON. STEVE ISRAEL of modern-day multi-national corporations, These students volunteered their time, effort, most of our day-to-day purchases take place and talent to inform me about the important OF NEW YORK at ‘‘mom and pop’’ small businesses. IN THE HOUSE OF REPRESENTATIVES Moreover, 99 percent of all independent issues facing their generation. As young lead- companies and businesses in the U.S. are ers within their communities and their schools, Wednesday, April 28, 2010 considered small businesses. these students boldly represent the promise According to the U.S. Small Business Ad- and the hope we all have for their very bright Mr. ISRAEL. Madam Speaker, I rise today ministration, these small businesses account future. to acknowledge a nonprofit organization that serves my district, Parents for Megan’s Law. for 52 percent of all U.S. workers. These small President Ronald Reagan said, ‘‘Freedom is Parents of Megan’s Law have demonstrated businesses also provide a continuing source never more than one generation away from an overwhelming amount of commitment to of vitality for the American economy. Small extinction. We didn’t pass it to our children in businesses in the U.S. produced three-fourths serving the Long Island community. My con- the bloodstream. It must be fought for, pro- of the economy’s new jobs between 1990 and stituents rely on our nonprofits for the vital tected, and handed on for them to do the 1995, and represent an entry point into the services they offer. The continuous selfless economy for new groups. Women, for in- same, or one day we will spend our sunset acts of Parents for Megan’s Law are admi- stance, participate heavily in small businesses. years telling our children and our children’s rable. The number of female-owned businesses children what it was once like in the United I am proud to honor Parents for Megan’s climbed by 89 percent, to an estimated 8.1 States where men were free.’’ Law for their extraordinary work in the commu- million, between 1987 and 1997, and women- To ensure that the blessing of freedom is nity. owned sole proprietorships were expected to passed from one generation to the next, the reach 35 percent of all such ventures by the members of the CYAC spent time interviewing f year 2000. Small firms also tend to hire a a veteran and documenting the experience for IN HONOR AND MEMORY OF greater number of older workers and people the ‘‘Preserving History Project.’’ Today I’m who prefer to work part-time. HERMAN KAMMERMAN proud to submit the brief summaries provided One strength that small businesses are known for is their ability to respond quickly to so the patriotic service of our dedicated vet- changing economic conditions. They often erans and the thoughtful work of the CYAC HON. DENNIS J. KUCINICH know their customers personally and are es- may be preserved for antiquity in the CON- OF OHIO GRESSIONAL RECORD. A copy of each sub- pecially suited to meet local needs. There are IN THE HOUSE OF REPRESENTATIVES tons of stories of startup companies catching mitted student summary follows. national attention and growing into large cor- To each member of the Congressional Wednesday, April 28, 2010 porations. Just a few examples of these types Youth Advisory Council, thank you for making Mr. KUCINICH. Madam Speaker, I rise of startup businesses making big include the this year and this group a success. It is not a today in honor and memory of Herman computer software company Microsoft; the coincidence that this congressional tribute Kammerman, whose lifelong dedication to pro- package delivery service Federal Express; celebrates two generations of service. Each of moting consumer rights, workers rights and sports clothing manufacturer Nike; the com- you is trusted with the precious gift of free- social justice has made a lasting impression puter networking firm America OnLine; and ice dom. on the citizens of our community. cream maker Ben & Jerry’s. Through the passage of S. 3253 we will be You are the voices of the future and I salute In 1972, Mr. Kammerman was appointed Di- temporarily extending programs under the you. God bless you and God bless America. rector of Consumer Affairs by the late Ralph Perk, former Mayor of Cleveland. He was re- Small Business Act and the Small Business The summary follows: Investment Act of 1958 through the end of lieved of that position for ruffling corporate July 2010. With the passage of this bill we will Mr. Craig Sherwood was born on February feathers, but I reappointed him when I became be helping small businesses and communities 3, 1966, and was influenced at an early age by Mayor in 1977. As Director of Consumer Af- across the Nation. We will also be helping to the sense of ‘‘duty, honor, country’’ that was fairs in my administration, Mr. Kammerman drive our economy upward and will be helping enforced at the U.S. Military Academy at worked tirelessly to expose unfair practices in businesses across the Nation. West Point. He was highly impressed by the marketplace. Thanks to his efforts, we im- We must always ensure that we place a their integrity and strived to be like the offi- plemented several consumer protection laws, high level of priority on small businesses. It is cers he had seen at the academy. His father including a requirement to date perishable gro- served in the Korean War and his uncle had also important that we work towards ensuring cery items. His work also paved the way for served in the Vietnam War. Mr. Sherwood an ordinance which mandated that all gas sta- that small businesses receive all the tools and enlisted in August 1985 at age 19 and was sent resources necessary for their continued tions post their prices, as well as an ordinance to several training camps including airborne which made it illegal for companies to adver- growth and development. camp where he trained with parachutes and tise sale prices for products without sufficient I would like to again thank my colleague infiltration maneuvers. Afterwards, he was Sen. MARY LANDRIEU for introducing S. 3253. sent to ranger camp where he was put inventories in stock. I ask my colleagues for their support of this through rigorous training programs and During and following his tenure as a con- legislation as well as their continued support eventually came through 43 pounds thinner! sumer affairs advocate, Mr. Kammerman was for small businesses across the Nation. After training, he was sent to Germany and a proud tool and die maker at Ford Motor Mr. Speaker, I strongly support S. 3253 and was stationed over 50 men and four canons. Company. He served as vice-president of the rule. Mr. Sherwood was placed in 1989 to hold off UAW Local 420 and served as chairman for f the Soviet Union forces and was out- the UAW’s Council for Consumer Services. numbered three to one but was able to hold THE CONGRESSIONAL YOUTH AD- Madam Speaker, please join me in honor of them off for 45 minutes, ensuring a U.S. vic- Herman Kammerman, a man who lived his life VISORY COUNCIL: A LEGACY OF tory. I have learned that despite the pride of with great joy and in dedicated service to oth- SERVICE serving the Nation at home and abroad, there is still a danger that is faced. I have ers. I offer my sincere condolences to his wife, HON. SAM JOHNSON gained an understanding and appreciation Annette Solomon; to his children, Walter, Kathleen, and Teresa; and to his five grand- OF TEXAS for those who have served and given their children, three great-grandchildren and friends. IN THE HOUSE OF REPRESENTATIVES time to preserve freedom in the U.S. Mr. Sherwood’s story portrays the sanctity of Mr. Kammerman’s love for his family and de- Wednesday, April 28, 2010 life and how important it is to protect those votion to protecting the rights of consumers Mr. SAM JOHNSON of Texas. Madam moments with loved ones and to never give and workers will be always appreciated and Speaker, I ask my fellow colleagues to join me up.—Alexis Webber. remembered.

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00005 Fmt 0626 Sfmt 0634 E:\CR\FM\A28AP8.009 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS E694 CONGRESSIONAL RECORD — Extensions of Remarks April 28, 2010 IN RECOGNITION OF DR. BEN- ernors of Maryland and Virginia and the Mayor HONORING KANSAS CITY, KANSAS, JAMIN FRANKLIN PAYTON AT of Washington, D.C. He is also a member of POLICE CHIEF SAMUEL F. HIS RETIREMENT AS PRESIDENT the board of the Maryland Affordable Housing BRESHEARS OF TUSKEGEE UNIVERSITY Trust and the United Way of Central Maryland. He is a past member of the Board of Trustees HON. DENNIS MOORE at Adelphi University, his alma mater, and is HON. MIKE ROGERS OF KANSAS OF ALABAMA an Executive-in-Residence at Morgan State IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES University’s Earl G. Graves School of Busi- ness and Management Honors Program. Wednesday, April 28, 2010 Wednesday, April 28, 2010 In 2009, Mr. Banks won several awards for Mr. MOORE of Kansas. Madam Speaker, Mr. ROGERS of Alabama. Madam Speaker, business results and community focus includ- Kansas City, Kansas, Chief of Police Samuel I would like to request the House’s attention ing The Greater Baltimore Committee Mayor’s F. Breshears was honored as Kansas’ recipi- today to pay recognition to the distinguished Business Recognition Award, the Award of Ex- ent of the prestigious 2010 Clarence M. Kelley career of Dr. Benjamin Franklin Payton, who cellence given by Associated Builders and Meritorious Service Award at the spring con- will be retiring this year from his position as Contractors, the Professional Achievement ference of the Kansas/Western Missouri Chap- the 5th president of Tuskegee University, a and Community Service Award by the Balti- ter of the Federal Bureau of Investigation Na- position he has held for the past 29 years. more City Community College Foundation, the tional Academy Association in Wichita, Kan- It goes without saying that Dr. Payton has Entrepreneur Award by the Black Engineer of sas, on Friday, April 9th, 2010. led a highly successful career serving the stu- the Year Global Competitiveness Conference, Chief Breshears’ dedication to the law en- dents, faculty and community of Tuskegee and the Future 50 Award by SmartCEO Pub- forcement profession, and to the men and University. As President, his many accom- lishing. women who make up the heart and soul of the plishments at the University will certainly be Madam Speaker, I ask that you join with me calling of law enforcement, is reflected in his remembered long after his departure. Among today to honor Mr. Kenneth Banks for his out- commitment to seeking the best possible train- his many milestones include the launching of standing work and community involvement. ing for them. Throughout his career he has Tuskegee University’s first Ph.D. programs in Through his visionary leadership and stellar taken great interest in making it possible for Materials Science and Engineering and Inte- business principals, Baltimore continues to officers get the best contemporary training, ac- grated Biosciences; his involvement in the re- grow and flourish. knowledging that training and policy develop- construction and renovation of the entire cam- f ment are practical tools in fighting crime. He pus; and his success in leading and exceeding has also continued the organizational philos- a $150 million Capital Campaign. Dr. Payton’s HONORING THE LIFE AND ACCOM- ophy of community policing and recognizes work at Tuskegee University, coupled with his PLISHMENTS OF SAM HOUSTON that aggressive law enforcement must remain previous accomplishments, has earned him SPEECH OF sensitive to the needs of the community. This many honors and awards including First Place philosophy is a benchmark to his core police winner of the Harvard Billings Prize, 1957; HON. KEVIN BRADY officer values of establishing and maintaining South Carolinian of the Year, 1972; an ap- OF TEXAS competent, dedicated and exemplary law en- pointment by President Ronald Reagan to the IN THE HOUSE OF REPRESENTATIVES forcement officers. Board for International Food and Agricultural Monday, April 26, 2010 Development; and under President George W. Since 1999, Chief Breshears has served Bush, he was appointed to lead the Task Mr. BRADY of Texas. Mr. Speaker, I rise with distinction on the Kansas Commission on Force on Agricultural and Economic Develop- today in support of H. Res. 1103, honoring the Peace Officers Standards and Training, ment to Zaire. anniversary of the birth of a great Texan, Sam (KSCPOST), a position he was appointed to All of us across Macon County and East Houston. Due to a conflict I was unable to by the Governor of the State of Kansas. This Alabama have been touched by the visionary cast my vote in support of this bill yesterday. body is responsible for certifying Kansas Law leadership of Dr. Benjamin Franklin Payton. Sam Houston was a larger than life char- Enforcement Officers. Further, Chief He will be missed in the community and at the acter who left a lasting impact on the history Breshears has shown his respect for and life- University he has led for so long. On behalf of of Texas. Already an established statesman— long appreciation of the law enforcement field us all, I congratulate him for his distinguished as first a member of this body and Governor by continuing to expand his knowledge and service. of the state of Tennessee—Sam Houston’s training in the law enforcement discipline, such as having been invited to attend and partici- f leadership was essential in Texas gaining independence from Mexico and later in pate in the FBI-sponsored National Executive KENNETH BANKS achieving statehood. Sam Houston led the Institute. Texas Revolutionary forces in the Texas War In addition to his graduate-level academic HON. C.A. DUTCH RUPPERSBERGER of Independence and was instrumental in achievements and being a graduate of the FBI OF MARYLAND achieving victory over at the Battle of San National Academy in 1994, graduating in the 176th session, he has been a model of com- IN THE HOUSE OF REPRESENTATIVES Jacinto. The only person to have been the governor munity service and volunteerism serving on Wednesday, April 28, 2010 of two different states, Sam Houston also was numerous boards and committees throughout Mr. RUPPERSBERGER. Madam Speaker, I an inaugural Senator from Texas. the years. His service record reflects his dedi- rise before you today to honor Mr. Kenneth I have long been impressed with Sam Hous- cation to an exemplary career in law enforce- Banks for his outstanding business success, ton. In my office, I proudly display two portraits ment: High Intensity Drug Trafficking Areas community involvement, and impact on Mary- of Houston. Program Executive Board; FBI Joint Terrorism land’s economic growth and prosperity. Sam Houston’s legacy is important to the Task Force Executive Board; FBI HARCFL Mr. Banks graduated from Adelphi Univer- people of Texas’ Eighth congressional district. Executive Board; Kansas City Metro Chiefs sity in 1974; Mr. Banks has been in the con- A much larger than life statue of Sam Houston and Sheriffs Executive Board; Emerging struction field since 1975. He was a foreman greets all who come to Huntsville—the east Threat Analysis Capability Executive Board; and project manager for a contractor before Texas town where Sam Houston spent his and Kansas Peace Officers Association/Gov- launching his own firm in 1980. Mr. Banks’ golden years and where his name lives on at ernor at Large. high standard of excellence, emphasis on pro- Sam Houston State University. At 67 feet tall The singularly distinctive accomplishments fessional expertise, and dependability has had and 25 tons, the steel and concrete statue of Chief Breshears culminate a long and dis- a powerful impact on the community. He has aptly named ‘‘A Tribute to Courage’’ is a testa- tinguished career in the service of the citizens worked with numerous community organiza- ment to how the Huntsville community con- of Kansas City, Kansas, and reflect great tions including the American Heart Associa- tinues to cherish Sam Houston. credit upon himself and the Kansas City, Kan- tion, where he chaired the 25th Anniversary Mr. Speaker, I am proud to celebrate the life sas, Police Department, and the Unified Gov- Heart Ball. of Sam Houston. For all his accomplishments, ernment of Wyandotte County, Kansas. Mr. Banks is a member of the Greater Balti- the people of the great state of Texas remain Madam Speaker, I know that you join with all more Executive Committee and serves as a forever in his debt and will continue to honor members of the House of Representatives in member of the Board on the Chesapeake his memory and public service on this anniver- acknowledging his distinguished service to our Crescent Commission, chaired by the Gov- sary of his birth. community.

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00006 Fmt 0626 Sfmt 0634 E:\CR\FM\A28AP8.011 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS April 28, 2010 CONGRESSIONAL RECORD — Extensions of Remarks E695 THE CONGRESSIONAL YOUTH AD- across the United States, as well as a volun- IN HONOR OF DAVID JOHN VISORY COUNCIL: A LEGACY OF teer at Methodist Richardson Medical Cen- MCKELVEY SERVICE ter.—Cindy Wang. f HON. TIM RYAN HON. SAM JOHNSON OF OHIO OF TEXAS HONORING MERCY CENTER MIN- IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES ISTRIES, INC. FOR THEIR EX- TRAORDINARY WORK IN THE Wednesday, April 28, 2010 Wednesday, April 28, 2010 COMMUNITY Mr. RYAN of Ohio. Madam Speaker, I sub- Mr. SAM JOHNSON of Texas. Madam mit the following. Speaker, I ask my fellow colleagues to join me HON. STEVE ISRAEL Youngstown—Calling hours for David John in congratulating the 2009–2010 Congres- McKelvey, 58, will be held at St. Edward OF NEW YORK sional Youth Advisory Council. This year 45 Church (240 Tod Lane) from 2 to 4 p.m. and 6 students from public, private, and home IN THE HOUSE OF REPRESENTATIVES to 8 p.m. on Thursday, April 29, 2010. schools in grades 9 through 12 made their Wednesday, April 28, 2010 Funeral services will be held on Friday at voices heard and made a difference in their St. Edward Church at 11 a.m. Additional Mr. ISRAEL. Madam Speaker, I rise today calling hours will be held from 9:45 to 10:45 communities, their country and their Congress. to acknowledge a nonprofit organization that a.m., prior to the service. These students volunteered their time, effort, serves my district, Mercy Center Ministries, David was born on March 23, 1952, in and talent to inform me about the important Inc. Youngstown, the son of William B. McKelvey issues facing their generation. As young lead- Mercy Center Ministries has demonstrated and Sallie Turner McKelvey. David was a lifelong member of the community. ers within their communities and their schools, an overwhelming amount of commitment to these students boldly represent the promise David was a member of St. Edward Church serving the Long Island community. My con- and attended Ursuline and The Rayen and the hope we all have for their very bright stituents rely on our nonprofits for the vital future. School. After graduation, David joined the services they offer. Mercy Center Ministries’ Peace Corps and later attended Youngstown President Ronald Reagan said, ‘‘Freedom is continuous acts of selfless efforts are admi- State University. He worked in real estate never more than one generation away from rable. and business development for the majority of extinction. We didn’t pass it to our children in I am proud to honor Mercy Center Min- his life. the bloodstream. It must be fought for, pro- He was married in 1985 to Meg Mitchell of istries, Inc. for their extraordinary work in the tected, and handed on for them to do the Youngstown. community. same, or one day we will spend our sunset He is survived by his children, Jonathan (22), Catherine (18), and Connor (11). David is years telling our children and our children’s f children what it was once like in the United also survived by his mother, Sallie T. McKelvey; his siblings, Letitia McKelvey, States where men were free.’’ IN HONOR AND REMEMBRANCE OF MRS. LUZ MARIA VILLANUEVA Lucius McKelvey (Terrie), Walter McKelvey To ensure that the blessing of freedom is (Carol), William McKelvey (Sarah), former passed from one generation to the next, the Mayor George McKelvey (Sherry), Sally members of the CYAC spent time interviewing HON. DENNIS J. KUCINICH McKelvey Bulger (David) and Anne a veteran and documenting the experience for OF OHIO McKelvey; and many loving nieces, nephews, and cousins. the ‘‘Preserving History Project.’’ Today I’m IN THE HOUSE OF REPRESENTATIVES proud to submit the brief summaries provided David was preceded in death by his father, so the patriotic service of our dedicated vet- Wednesday, April 28, 2010 William B. McKelvey. David was passionate about his faith, fam- erans and the thoughtful work of the CYAC Mr. KUCINICH. Madam Speaker, I rise ily, friends, fishing and traveling. David was may be preserved for antiquity in the CON- today in honor and remembrance of Mrs. Luz an avid volunteer. His favorite charitable GRESSIONAL RECORD. A copy of each sub- Maria Villanueva who lived her life with joy, cause was serving holiday meals at the Res- mitted student summary follows. grace and total dedication to her family and cue Mission. It gave him great joy to see his To each member of the Congressional friends. children participate in this charitable work. Youth Advisory Council, thank you for making Mrs. Villanueva was born to a large, loving David was held in high esteem by his many this year and this group a success. It is not a family in Puerto Rico before moving to Cleve- friends, earning respect by his character coincidence that this congressional tribute land, Ohio. She learned the values of faith and strengths of integrity, reliability and loy- alty. David will be sadly missed and remem- celebrates two generations of service. Each of sharing as a young child, values that stayed bered fondly in the hearts of the lives he you is trusted with the precious gift of free- with her throughout her life. Mrs. Villanueva touched. dom. was preceded in death by her husband of 34 In lieu of flowers, the family asks that You are the voices of the future and I salute years, Jose, and also by her son, James. Mrs. your generosity be best expressed by a dona- you. God bless you and God bless America. Villanueva and her husband raised seven chil- tion to the Gleaner’s Food Bank, 94 Pyatt The summary follows: dren. Her children, grandchildren and great- St., Youngstown, OH 44502. Like water that seeps through the cracks grandchildren were a source of her strength Funeral arrangements are being handled of our hands, history is continually being by the McCauley Funeral Home on Broadway and joy. In addition to her family, she was Ave. in Youngstown. lost because it is not being written down. never far from her beloved Chihuahua, Chico. While interviewing Donald D. Simmons and f documenting his experiences as a member of Mrs. Villanueva was dedicated to the teach- the Air Force during the Korean War, I felt ings of her Roman Catholic faith. She was al- IN HONOR OF THE GRAND OPEN- that I became part of the quilt of history ways willing to offer a helping hand, a warm ING OF THE ELITE NEWS NA- that is perpetually being woven. I hope by smile or a kind word. She moved to Florida TIONAL RELIGIOUS HALL OF telling Don’s story, I gave a veteran the full thirty-one years ago and became active in the FAME MUSEUM appreciation he deserved for what he had parish community of the Church of the Trans- done for his country by ensuring that his figuration. Mrs. Villanueva was a Eucharist HON. PETE SESSIONS story would never be forgotten. At the ripe Minister, a member of Damas Catolica, and young age of 18, Don decided to enlist in the OF TEXAS taught catechism. Air Force. From 1952–1954, he spent his days IN THE HOUSE OF REPRESENTATIVES Madam Speaker and colleagues, please join on a mountaintop north of Seoul where he Wednesday, April 28, 2010 repaired radar systems and monitored the me in honor and remembrance of Luz Maria search radar that was operational 24 hours a Villanueva. I offer my deep condolences to her Mr. SESSIONS. Madam Speaker, I rise day, 7 days a week. After starting out as a children; Jose (Margaret) Villanueva, Fred today to celebrate the grand opening of the private, he climbed the ranks to become a (Ellen) Villanueva, Jennie Orama, Providencia Elite News National Religious Hall of Fame captain and received a Commendation Medal (Santos) Roman, Angela (Winfred) Robinson Museum on Thursday, April 29, 2010. for his service in Korea. After the armistice and Myrna Villanueva (Edwin Montalvo); her First launched in 2000 by Mr. William Blair, was signed he continued college under the GI Bill at the University of Maryland where he twelve grandchildren; five great-grandchildren; Jr., the National Religious Hall of Fame Mu- studied electrical engineering. He is now the and her extended family and many friends. seum seeks to celebrate, encourage, and secretary of the Aircraft Control and Warn- Mrs. Villanueva brought love, kindness and joy showcase the positive impact of ministers in ing Group, a Korean War veterans’ organiza- into the lives of those around her. She will our local community. The inductees are indi- tion that holds annual reunions in cities never be forgotten. viduals that have been active in ministry for at

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least fifteen years and are honored for their decorated career, Colonel Mann earned many may be preserved for antiquity in the CON- community, social, and spiritual contributions. awards including the Bronze Star, Air Medal GRESSIONAL RECORD. A copy of each sub- Their dedicated efforts have positively influ- and the Air Force and Army Commendation mitted student summary follows. enced our community and touched the lives of Medals. To each member of the Congressional numerous individuals, spanning generations. Colonel Mann’s record of military service Youth Advisory Council, thank you for making The National Religious Hall of Fame Mu- alone is enough to merit a lifetime of achieve- this year and this group a success. It is not a seum highlights the important role ministers ment. However, after retiring from the military coincidence that this congressional tribute play in our society. They work countless he did not quit his commitment to service. In- celebrates two generations of service. Each of hours, wholeheartedly devoted to serving God stead, he continued to go above and beyond you is trusted with the precious gift of free- and mankind. Although the results of their tire- the call of duty and put his service-oriented dom. less efforts may be unseen by many, the im- lifestyle to work in the community. Colonel You are the voices of the future and I salute pact of our ministers speak loudly in the leg- Mann helped co-found the local Lions Club in you. God bless you and God bless America. acy they leave and in the lives they transform. the 1980s. He also became a volunteer at the The summary follows: This museum serves as a tribute to how they Chamber of Commerce where he remains ac- I spent an evening with Staff Sergeant have made our community and our world a tive today. As a civilian, Colonel Mann worked (SSG) Efrain Garcia, a member of the Texas better place. with local retired military personnel and advo- Army National Guard, recipient of a Bronze Madam Speaker, I ask my esteemed col- Star and an Army Commendation Medal, cated on their behalf at the national level as currently serving his second term. That’s leagues to join me in congratulating Elite a member of the Board of Directors and Presi- right. A second term. You see, Staff Ser- News and their commitment to honoring min- dent of the Ft. Walton Beach Military Officers geant Garcia originally joined the U.S. Army isters with the National Religious Hall of Fame Association of America. In addition, Colonel when he was just a kid out of Grand Prairie Museum. Mann is a member of the Order of Daedalians. High School, served seven years in the reg- f In this capacity, he worked to enroll high ular army, took a ten year break, and de- school youth in ROTC programs, and spon- cided he missed the Army life so much, he RECOGNIZING FRANK W. MANN, sored an annual scholarship for ROTC stu- reenlisted. JR., ON HIS 90TH BIRTHDAY SSG Efrain Garcia was a pleasant looking dents. Frank is married to the former Margie man, inoffensive in mannerism and he had a Hatton of Malone, Florida. Together they have humble style of speaking. But, as he said HON. JEFF MILLER two daughters, Cindy and Karen. best, ‘‘The plumber working on your pipes OF FLORIDA It is with great honor, the highest respect could have a Silver Star. But so what? He’s IN THE HOUSE OF REPRESENTATIVES and much personal pride, Madam Speaker, not going to tell you his life story, he’s going to fix your pipes.’’ Garcia shrugged, as his Wednesday, April 28, 2010 that I recognize the life and deeds of Colonel Frank W. Mann, Jr. on his 90th birthday. He wife continued to inform us of his endless Mr. MILLER of Florida. Madam Speaker, I has been a leader both on the battlefield and humility. It clearly wasn’t recognition that rise to honor Colonel Frank Mann Jr., upon drove him. It was something greater. It was in northwest Florida. My wife Vicki and I wish the bond between men serving their country. the occasion of his 90th birthday. Colonel him a happy birthday and his entire family all Mann has spent a lifetime serving both coun- When he had left the Army, it called to him, the best for the future. and finally—called him back. He is a man in try and community, and it is a privilege to rec- f his element. He doesn’t need to brag. He just ognize him on this special day. Throughout serves.—Ross Van de Kop THE CONGRESSIONAL YOUTH AD- the span of his nine decades, Colonel Mann f has lived as a shining example to show all VISORY COUNCIL: A LEGACY OF what the virtues of patriotism and voluntarism SERVICE HONORING ISRAELI truly mean. I know that as he continues to live INDEPENDENCE DAY out his days, the life of Colonel Mann will HON. SAM JOHNSON SPEECH OF serve as a reflection for all to gaze upon to OF TEXAS ´ find the exact measure of a man. IN THE HOUSE OF REPRESENTATIVES HON. LINDA T. SANCHEZ Frank was born in Bayonne, New Jersey, on OF CALIFORNIA Wednesday, April 28, 2010 May 2, 1920. As a young pilot, Colonel Mann IN THE HOUSE OF REPRESENTATIVES spent time in the service as an instructor pilot Mr. SAM JOHNSON of Texas. Madam Wednesday, April 21, 2010 and in England as a B–24 and B–29 aircraft Speaker, I ask my fellow colleagues to join me ´ commander during World War II. After leaving in congratulating the 2009–2010 Congres- Ms. LINDA T. SANCHEZ of California. Mr. the service, he returned to the University of sional Youth Advisory Council. This year 45 Speaker, I rise to celebrate Israel’s 62nd year Wyoming and earned a Bachelor of Science in students from public, private, and home of nationhood. Geology. schools in grades 9 through 12 made their On May 14, 1948, the nation of Israel was As war broke out in Korea, Colonel Mann voices heard and made a difference in their born. The United States of America was the was recalled to active duty and stationed at communities, their country and their Congress. first country to recognize the new state. We F.E. Warren AFB, Wyoming. After a few short These students volunteered their time, effort, began a long relationship of trust and friend- months, Colonel Mann was assigned as the and talent to inform me about the important ship, and that holds true today. Chief of Combat Operations for the 19th Bom- issues facing their generation. As young lead- As a co-chair of the Democratic Israel Work- bardment Group based at Kadena Air Base, ers within their communities and their schools, ing Group I am proud to celebrate America’s Okinawa. During this time he flew B–29 bomb- these students boldly represent the promise relationship with Israel and to commemorate ing missions over Korea. By the time the war and the hope we all have for their very bright the founding of our trusted ally. As we reflect on the importance of Israel’s ended in 1953, the 19th had flown 645 mis- future. 62 years of existence, I look forward to the sions, 5,950 sorties, and had dropped more President Ronald Reagan said, ‘‘Freedom is work our nations will do together and the than 52,000 tons of bombs on enemy targets. never more than one generation away from progress we can make towards a lasting For their display of ability, the 19th was extinction. We didn’t pass it to our children in peace with Israel’s neighbors. awarded a Presidential Unit Citation. They the bloodstream. It must be fought for, pro- I ask my colleagues to join me in recog- were also awarded the Republic of Korea tected, and handed on for them to do the nizing Israel’s 62nd anniversary. Presidential Unit Citation. same, or one day we will spend our sunset Colonel Mann spent the later portion of his years telling our children and our children’s f illustrious career as an Air Force officer in nu- children what it was once like in the United HONORING MR. DEAN G. POPPS merous leadership and command positions States where men were free.’’ throughout the world. Some of those posts in- To ensure that the blessing of freedom is SPEECH OF clude Commander of the 705th Aircraft Control passed from one generation to the next, the HON. STEVE KING and Warning Squadron, Director of Flight Op- members of the CYAC spent time interviewing OF IOWA erations at Wright-Patterson AFB and Com- a veteran and documenting the experience for IN THE HOUSE OF REPRESENTATIVES mander of an Air Defense Command Radar the ‘‘Preserving History Project.’’ Today I’m Station at Mt. Laguna, California. In 1973, proud to submit the brief summaries provided Wednesday, April 28, 2010 after 37 long years of selfless service, Colonel so the patriotic service of our dedicated vet- Mr. KING of Iowa. Madam Speaker, I rise Mann retired. Through his distinguished and erans and the thoughtful work of the CYAC today to pay tribute to an outstanding public

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00008 Fmt 0626 Sfmt 9920 E:\CR\FM\K28AP8.008 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS April 28, 2010 CONGRESSIONAL RECORD — Extensions of Remarks E697 servant and proud Greek American, Mr. Dean RECOGNIZING THE 50TH ANNIVER- we must do our part to remember their unwav- G. Popps. Dean most recently served our Na- SARY OF THE ‘‘RED KNIGHTS’’ ering commitment with our hearts and minds. tion as Acting Assistant Secretary of the Army OF TRAINING SQUADRON THREE f for Acquisition, Logistics and Technology, and HEROES COME IN ALL SHAPES on April 16, 2010, he stepped down from his HON. JEFF MILLER AND SIZES: EIGHT-YEAR-OLD OF FLORIDA position to return to civilian life. This brings to DILLON EARL IS A HERO a close a 7-year tour in the Department of De- IN THE HOUSE OF REPRESENTATIVES fense that started with his volunteering for a Wednesday, April 28, 2010 179-day rotation in Iraq as part of the Coalition HON. JOHN T. SALAZAR Mr. MILLER of Florida. Madam Speaker, it OF COLORADO Provisional Authority, where I first had the is with great pleasure I rise to recognize the IN THE HOUSE OF REPRESENTATIVES pleasure of meeting him. 50th anniversary the Red Knights of Training Wednesday, April 28, 2010 Since then, Dean has served our Nation Squadron Three. Through times of war and under two Presidents, two Secretaries of De- through times of peace, the Red Knights have Mr. SALAZAR. Madam Speaker, heros fense and three Deputy Secretaries of De- served our country with great distinction and come in all shapes and sizes and I rise today fense in a variety of increasingly senior roles. valor. In their commitment and in their sac- to honor eight-year-old Dillon Earl of Fruita, His visionary approach to his most recent po- rifice, Training Squadron Three rightfully holds Colorado for heroic acts that saved lives on sition brought sorely needed business acumen a place in the annals of Naval History as a Sunday, April 25. to the Army’s bureaucratic acquisition process. squadron that took immense pride in preparing While the two were on their way to church, America’s finest youth for the defense of our By calling on his years of experience as a Dillon’s grandmother Lisa DeKruger had a sei- great nation and her ideals. For that reason, I zure behind the wheel of her truck. Luckily for businessman and entrepreneur, he reinvigo- am proud to recognize the Red Knights of both of them, Dillon’s quick thinking and brav- rated his staff, reshaped rigid business prac- Squadron Three for their exceptional training ery under pressure saved both their lives and tices and advanced the Army’s acquisition ob- and excellent performance over the last 50 those of other drivers on the road. jectives. Through this work, Dean has made years. When he noticed something was wrong with invaluable contributions to multiple aspects of With World War II raging in both the Atlantic his grandmother, eight-year-old Dillon reached Army operations in his years of service. and Pacific theaters the demand for trained pi- for the brake and guided the truck to the side Among Dean’s many contributions to the lots was at its zenith, and the first squadron to of the interstate. With the assistance of an- Army and the Nation was his leadership role bear the name Training Squadron Three was other driver, he called 9–1–1 and got his in the Army’s modernization program, in which created. Throughout the costly struggle with grandmother the urgent medical attention she he successfully defended resources and se- the Axis Alliance that claimed many young pi- needed. cured funding for many projects that have lots, Training Squadron Three continued to The impact of Dillon’s actions has only strengthened the capabilities of our Armed train pilots for day-to-day operations and for begun to sink in for his grandmother who re- Forces as they carry out missions in Iraq, Af- the units needed to carry out the final cam- cently told him, ‘‘I guess Grandma owes you ghanistan, and elsewhere around the world. paigns against the Japanese mainland. After lots of candy for the rest of your life.’’ the terms of surrender were signed by the Throughout this incredible incident, Dillon Dean also oversaw the Iraq Relief and Recon- Japanese, there was little need for multiple has shown humility and a maturity beyond his struction Fund for three years, running what training squadrons to train an enormous inva- years. His remarkable courage and concern became the largest construction effort since sion force and Training Squadron Three was for his loved ones are an inspiration to all of the Marshall Plan. This project saw the com- decommissioned. us. This brave young man from Mesa County pletion of more than 3,400 reconstruction The current Red Knights of Training Squad- Colorado has made his family, his community projects that have had a profound impact on ron Three picked up the torch lit by their pred- and his Congressman very proud. the restoration of key elements of the Iraqi in- ecessors on May 1, 1960, and continued the I wish him and his family continued health frastructure as the country rebuilds and estab- legacy of ‘‘Training the Best for America’s De- and happiness. lishes a democratic system. fense.’’ On that day, Training Squadron Three f A committed leader in every position he has was commissioned with the task of utilizing HONORING CARLOS BRADLEY held, Dean effectively ran the U.S. Elimination the T–28 Trojan to prepare a younger genera- of Chemical Weapons Program as well, which tion of student naval aviators in radio instru- has become a model for achieving the safe ments, formation flying and air-to-air gunnery. HON. ROBERT A. BRADY destruction of stockpiled chemical weapons. In 1968, at the height of the Vietnam War, OF PENNSYLVANIA Training Squadron Three was at its peak size; By the end of his time at the program’s helm, IN THE HOUSE OF REPRESENTATIVES consisting of 174 instructors, 494 students, the program had successfully completed over Wednesday, April 28, 2010 649 enlisted and 162 T–28 aircraft. During 50 percent of our national goal to eliminate 1968, Training Squadron Three had flown al- Mr. BRADY of Pennsylvania. Madam stockpiled chemical agents in accordance with most 110,000 instructional hours and trained Speaker, I rise to honor one of Philadelphia’s the Chemical Weapons Convention, and it will 902 students. These impressive figures set the great athletes, Carlos Bradley, on his induction continue to serve as an outstanding model for record for any training squadron in the history into the Pennsylvania State Sports Hall of similar programs elsewhere in the world. of Naval Air Training command. Fame. Throughout his athletic career, Carlos Foremost in Dean’s mind has always been In 1980, Training Squadron Three became has proven to be not only an extraordinary a commitment to the welfare of each soldier the only primary fixed wing training squadron sportsman, but a man of great character as serving our Nation, a concern that he has to be alternately commanded by a Navy and well. upheld throughout his tenure as he helped Marine Corps officer. The Red Knights were Carlos was an All-American linebacker at various projects overcome a myriad of obsta- honored once again in 1994 when they be- Germantown High School in Philadelphia, and cles. He has constantly held himself to exact- came the Navy’s first and only joint service he also earned the distinction of being an All- American at Wake Forest University. Carlos ing performance standards and his visionary primary flight training squadron. In 1997, the squadron was selected as the first Navy then went on to become a successful NFL leadership and unselfish commitment to duty squadron to transition to and fly the T–6 linebacker, playing for the San Diego Char- are truly admirable. The Nation will miss Texan II. gers and, later, the Philadelphia Eagles. Car- Dean’s service but I’m confident his wife Lise, Madam Speaker, on behalf of the United los now uses his athletic experience to help sons Stephen, Jason, and George, and his States Congress, I am privileged to recognize clients as a personal trainer, where he is one daughter Christina, will be happy to have him the Red Knights for going above and beyond of the most sought after trainers in the coun- back after his extended loan to the American the call of duty on their 50th anniversary. To try. people. I hope my colleagues will join me in this day, the Red Knights of Squadron Three In addition to having a spectacular athletic wishing him well in all his future endeavors continue to provide the highest quality training career, Carlos has worked to help give back to and hope that those who follow in his foot- to student aviators from the Navy, Marine our youth. As the Executive Vice President of steps will continue his legacy of selfless dedi- Corps, Coast Guard, Air Force and several Al- the International Student Athlete Academy, cation to our great Nation. Good luck and god- lied nations. As they remain resolute and Carlos works to help young athletes realize speed. steadfast to do their part defending our nation, their true athletic and academic potentials. By

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00009 Fmt 0626 Sfmt 9920 E:\CR\FM\A28AP8.018 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS E698 CONGRESSIONAL RECORD — Extensions of Remarks April 28, 2010 working with junior high and high school stu- they could respond. His team’s main assign- THE INTRODUCTION OF THE AN- dent athletes, the ISAA helps these students ment was to act as a liaison between the THRAX ATTACK COMMEMORA- prepare for well rounded lives. American Army and the Italian Army and TIVE STAMP RESOLUTION Carlos’s impressive career shows a long- place the army on the allied side. Unfortu- nately, it never materialized. After my inter- standing commitment towards promoting the view with Mr. Giamporcaro, I gained valu- HON. ELEANOR HOLMES NORTON benefits of sport and exercise, and he is well able insight that I would have never been OF THE DISTRICT OF COLUMBIA deserving of being inducted into the Pennsyl- able to obtain had I read my U.S. History IN THE HOUSE OF REPRESENTATIVES vania State Sports Hall of Fame. textbook. War is real and it is not something Wednesday, April 28, 2010 Madam Speaker, I ask that you and my to be taken lightly. Many Americans now- other distinguished colleagues join me in con- adays tend to forget that war is existent be- Ms. NORTON. Madam Speaker, today I in- gratulating Carlos Bradley on his induction into cause it is not happening on U.S. soil. In ad- troduce a resolution directing the Citizens’ the Pennsylvania State Sports Hall of Fame, dition, I believe the citizens of America have Stamp Advisory Committee to recommend to become a little less disturbed of the thought the Postmaster General that a commemorative and thank Carlos for his hard work and dedi- of a fallen soldier because death is a reoccur- cation to his community. stamp be issued to honor the lives of Joseph ring, constant process. This should not be Curseen, Jr. and Thomas Morris, Jr., the two f the case. Every lost life of a soldier results in a loss of a whole generation of Americans. United States Postal Service (USPS) workers, THE CONGRESSIONAL YOUTH AD- I also learned that no matter what position and District of Columbia natives, who died as VISORY COUNCIL: A LEGACY OF a soldier has in the military, they are an in- a result of their exposure to anthrax while SERVICE tegral part to the execution of battle plans. working at the USPS facility located at 900 The military functions as one unit, which is Brentwood Road, NE, Washington, D.C., dur- supported by many different departments. As ing the 2001 anthrax attack. This commemora- HON. SAM JOHNSON a result, we are called upon to recognize and OF TEXAS tive stamp meets the Citizens’ Stamp Advisory shine light to the millions of unsung war he- Committee’s requirement that no postal item IN THE HOUSE OF REPRESENTATIVES roes who fought for our country to provide may be issued sooner than five years after an Wednesday, April 28, 2010 for the general welfare of the people.—Julia Wang individual’s death. Mr. SAM JOHNSON of Texas. Madam Joseph Curseen, Jr. and Thomas Morris, Jr. served the USPS honorably and diligently for Speaker, I ask my fellow colleagues to join me f in congratulating the 2009–2010 Congres- a combined period of 52 years until their sional Youth Advisory Council. This year 45 COMMEMORATING THE 2010 deaths on October 22, 2001, and October 21, students from public, private, and home WORKERS’ MEMORIAL DAY 2001, respectively. Curseen, remembered as schools in grades 9 through 12 made their a quiet man with a fuzzy mustache, loved to voices heard and made a difference in their tell stories and loved his church. He was so communities, their country and their Congress. HON. JOE COURTNEY dedicated to his work, that during the 15 years These students volunteered their time, effort, OF CONNECTICUT that he worked for the USPS, he never called and talent to inform me about the important IN THE HOUSE OF REPRESENTATIVES in sick. His co-workers described him as someone who was kind and courteous, who issues facing their generation. As young lead- Wednesday, April 28, 2010 ers within their communities and their schools, stayed at the Post Office seven days a week, these students boldly represent the promise Mr. COURTNEY. Madam Speaker, I rise. giving up breaks to get the mail out, and who and the hope we all have for their very bright today to join the millions of men and women regularly led a postal worker Bible study future. across our country that will stand in silence group. In his neighborhood of Cambridge Es- President Ronald Reagan said, ‘‘Freedom is today to honor the memory of those individ- tates, Maryland, Curseen was the president of never more than one generation away from uals who have lost their lives or have been in- the homeowners association, an avid jogger, extinction. We didn’t pass it to our children in jured on the job. Today, April 28, 2010, is and a member of St. John the Evangelist the bloodstream. It must be fought for, pro- Workers’ Memorial Day, a day created by the Church. To his neighbors, Curseen was some- tected, and handed on for them to do the AFL–CIO and its membership, on which we one who everyone knew, who was friendly, same, or one day we will spend our sunset honor all working men and women in this and who worked quietly, but ‘‘really got things years telling our children and our children’s country for their sacrifice and dedication. done.’’ He helped build a playground and park children what it was once like in the United The first Workers’ Memorial Day was cele- in the Cambridge Estates area, even though States where men were free.’’ brated in the United States on April 28, 1989. he and his wife had no children. Although To ensure that the blessing of freedom is The date was chosen because it was the anni- Curseen lived in Clinton, Maryland, he grew passed from one generation to the next, the versary of the establishment of the Occupa- up in Southeast D.C., where Our Lady of Per- members of the CYAC spent time interviewing tional Safety and Health Administration petual Help Roman Catholic Church was his a veteran and documenting the experience for (OSHA). Since its inception, OSHA has childhood parish and school. Curseen’s wife, the ‘‘Preserving History Project.’’ Today I’m worked to protect employees on job sites Celestine Willingham Curseen, to whom he proud to submit the brief summaries provided across the country. While OSHA has done a was married for 16 years, described her late so the patriotic service of our dedicated vet- great deal to protect the safety and interests husband as a generous, kind, hard-working erans and the thoughtful work of the CYAC of workers, more must be done to protect man who will be greatly missed. Thomas Morris, Jr. also grew up in the Dis- may be preserved for antiquity in the CON- workers and hold accountable those employ- trict of Columbia, although he and his family GRESSIONAL RECORD. A copy of each sub- ers who fail to ensure the safety of their em- moved to Suitland, Maryland. Before joining ployees. mitted student summary follows. the USPS, Morris served in the United States To each member of the Congressional This years’ Workers’ Memorial Day has a Air Force. Morris joined the USPC in 1973 and Youth Advisory Council, thank you for making special significance for those of us in Con- worked as a distribution clerk. He was a hard this year and this group a success. It is not a necticut. It was a little more than two months worker who had no aversion to working over- coincidence that this congressional tribute ago that on February 7, 2010, 6 workers lost time, a proud husband and father of one son celebrates two generations of service. Each of their lives and another 26 were injured when and two stepchildren, as well as the president you is trusted with the precious gift of free- an explosion occurred at the Kleen Energy of a bowling league team. To his neighbors, dom. plant in Middletown, CT. This horrific accident Morris was a quiet, thoughtful, deeply religious You are the voices of the future and I salute should never have happened and it is the re- and humble man, who dispensed helpful, and you. God bless you and God bless America. sponsibility of each and every one of us to not often paternal advice to his younger neigh- The summary follows: only honor the memory of those that were lost, bors. His wife, Mary, described him as true to Louis A. Giamporcaro served as a Tech- but to ensure that such a tragedy never hap- others and to himself, as someone who was nical Sergeant in WWII. He worked with all pens again. respectful and law-abiding. forms of communication: teletype, phone, Madam Speaker, I ask that all my col- radio, photography, etc and was responsible Please join me in honoring the lives of these for copying Morse code to send messages to leagues join me and working men and women two men, who died serving their country, and different places and receive incoming mes- around the country in remembering the men in requesting a commemorative stamp in their sages. In addition, he was ordered to inter- and women who have been killed or injured memory. cept where bullet shells were coming from on the job and to honor the families whom I urge my colleagues to support this resolu- and give instructions to the artillery unit so have lost so much. tion.

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00010 Fmt 0626 Sfmt 0634 E:\CR\FM\A28AP8.020 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS April 28, 2010 CONGRESSIONAL RECORD — Extensions of Remarks E699 HONORING THE LIFE OF MR. EARL Requirements, Headquarters Air Combat wanted to donate extra boxes of cookies to DURDEN Command, Langley Air Force Base, Virginia. our troops. As a result of this effort, over As a former Eagle Scout, he remains a volun- 86,000 boxes of Girl Scout cookies were sold HON. JEFF MILLER teer supporting the Boy Scouts of America and delivered to our troops serving in Iraq and OF FLORIDA and has done so throughout his military ca- Afghanistan, military hospitals in the U.S. and IN THE HOUSE OF REPRESENTATIVES reer. Hill’s commendations include the De- overseas, and USO hubs at major American fense Meritorious Service Medal, the Meri- airports for deploying and returning troops. Wednesday, April 28, 2010 torious Service Medal (two oak leaf clusters), Our sons and daughters fighting for us over- Mr. MILLER of Florida. Madam Speaker, it Air Force Commendation Medal, and the Joint seas put their lives on the line every day and is with both great honor and humility that I rise Service Achievement Medal. everything we can do to make their lives easi- to recognize the life of Mr. Earl Durden. After Madam Speaker, with his retirement from er helps. These cookies aren’t just a treat; 18 years, Earl succumbed to his battle with active duty in the United States Air Force on they’re a simple reminder of home and a sim- cancer and now rests in peace. Throughout June 1, 2010, I am proud to recognize Major ple gesture of thanks from a grateful commu- his 78 years, Mr. Durden spent his days work- Mark B. Hill and thank him for over two dec- nity. I’m proud to support the great members ing as a community leader, and I am proud to ades of representing the finest of our values of the Girl Scouts of Central Illinois and the honor his lifetime as a compassionate giver and for his long service in defense of our na- State Farm Military Affinity Group, and honor and visionary. tion. the work done by so many in our community Mr. Durden came from humble beginnings. f to thank our troops. He was born the son of a farmer outside of f Dothan, Alabama, but became a powerful HOOSIER HONOR FLIGHT leader in the transportation industry. While he HONORING EDUCATION & ASSIST- was a well known railroad magnate throughout HON. BRAD ELLSWORTH ANCE CORPORATION FOR THEIR Florida, Mr. Durden was perhaps best known OF INDIANA EXTRAORDINARY WORK IN THE COMMUNITY as a local philanthropist and for his quiet char- IN THE HOUSE OF REPRESENTATIVES ity. Earl Durden was a friend to many and was Wednesday, April 28, 2010 respected by even more. He was a man who HON. STEVE ISRAEL always gave generously and has good deeds Mr. ELLSWORTH. Madam Speaker, I rise OF NEW YORK that will forever go unknown. Even during his today to commend the brave and heroic vet- IN THE HOUSE OF REPRESENTATIVES fight with cancer, he never forgot what was erans of the Hoosier Honor Flight for their out- Wednesday, April 28, 2010 important and what was worth living for. standing leadership and service to our coun- Earl Durden was a self-made man. He be- try. Mr. ISRAEL. Madam Speaker, I rise today lieved in being honest, working hard and mak- Hoosier Honor Flight is an organization cre- to acknowledge a nonprofit organization that ing the most of life. His impressive list of ac- ated solely to honor the men and women who serves my district, Educational & Assistance complishments includes being named chair- have bravely sacrificed in their service to our Corp. man of the state transportation commission country by flying our heroes to Washington, EAC has demonstrated an overwhelming under Governor Jeb Bush, CEO and Director DC to visit and reflect at the memorials they amount of commitment to serving the Long Is- of Rail Management Corporation and owner of so rightly earned. land community. My constituents rely on our Magic Broadcasting Company. At age 68, The Hoosier Honor Flight is an admirable nonprofits for the vital services they offer. The Durden was honored by being named one of undertaking. It is of the utmost importance to continuous selfless efforts of those involved the most influential people in Florida. me that all American veterans are honored. with Education & Assistance Corp. are admi- Madam Speaker, on behalf of the United Thanks to their courageous service, all Ameri- rable. States Congress, I am privileged to recognize cans live free in this great country. I am proud to honor Educational & Assist- and honor the life of Earl Durden. The size of Thanks to the dedication of Monroe County ance Corp. for their extraordinary work in the Mr. Durden’s heart was only matched by his veterans’ organizations, businesses and Hoo- community. love for family. My wife Vicki and I express the siers from across southern Indiana who joined f deepest sympathies to his loving wife Karen forces to provide the first Hoosier Honor Flight RECOGNIZING OUTSTANDING and their three sons. on 12 November 2008, 39 World War II vet- PARENT SUPPORT FOR SCHOOLS f erans and one Korean War veteran were able to enjoy visiting the national WWII Memorial, RECOGNIZING THE SERVICE OF Lincoln and FDR memorials, Vietnam and Ko- HON. GERALD E. CONNOLLY MAJOR MARK B. HILL rean War memorials, as well as the Marine OF VIRGINIA Memorial, Arlington National Cemetery, the IN THE HOUSE OF REPRESENTATIVES HON. TOM McCLINTOCK Changing of the Guard at the Tomb of the Un- Wednesday, April 28, 2010 OF CALIFORNIA knowns, and laying a Hoosier Honor Flight IN THE HOUSE OF REPRESENTATIVES wreath at the Tomb. Mr. CONNOLLY of Virginia. Madam Speak- Today, over one hundred Hoosier veterans er, I rise today to recognize and pay tribute to Wednesday, April 28, 2010 will arrive in Washington, DC to visit the me- the contributions of Parent Teacher Associa- Mr. MCCLINTOCK. Madam Speaker, I rise morials dedicated in their honor. I will have the tions (PTA) and Parent Teacher Student Asso- today to recognize the service of Major Mark privilege of meeting these fine men and ciations (PTSA) in northern Virginia. These as- B. Hill of El Dorado Hills, California. Hill grew women to thank them for their service to our sociations serve a critical role in helping to up in El Dorado Hills and after graduating from country. provide the best possible educational environ- California State University-Sacramento, he f ment for our students. was commissioned into the U.S. Air Force at Schools located throughout northern Virginia Mather Air Force Base. CELEBRATING THE SUCCESS OF are consistently recognized as being among Major Hill has served with distinction for the ‘‘OPERATON COOKIE SHARE’’ the very best in our country. I strongly believe last 20 years, flying over 4,500 hours and one factor in the excellent education received more than 130 combat support missions HON. DEBORAH L. HALVORSON by our students is the high level of involve- aboard the E–3 Airborne Warning and Control OF ILLINOIS ment and encouragement provided by parents System aircraft and as a qualified Master Air IN THE HOUSE OF REPRESENTATIVES through PTAs and PTSAs. Parent volunteers Battle Manager. He has deployed in support of exist in a number of capacities within each multiple operations, including: Desert Storm, Wednesday, April 28, 2010 school ranging from planning and imple- Provide Comfort, Southern Watch, Deliberate Mrs. HALVORSON. Madam Speaker, today menting social events to helping ensure that Force, Allied Force, Enduring Freedom, and I rise to recognize the success of ‘‘Operation teachers have the classroom resources they Noble Eagle. As a qualified Joint Service Offi- Cookie Share,’’ a collaborative effort of the need to succeed. cer, he left a NATO post for his current duty Girl Scouts of Central Illinois and the State The Northern Virginia District PTA rep- assignment as a Branch Chief within the Com- Farm Military Affinity Group. This year, cus- resents a region with more than 220 schools. mand and Control, Intelligence, Surveillance tomers purchasing Girl Scout cookies were Maintaining a healthy and strong organization and Reconnaissance Division, Directorate of able check on their order form whether they is an important part of allowing these groups

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00011 Fmt 0626 Sfmt 9920 E:\CR\FM\K28AP8.011 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS E700 CONGRESSIONAL RECORD — Extensions of Remarks April 28, 2010 to have the greatest possible impact on the THE OCCASION OF FIRST ANNI- these goals. It is time to bring equal attention students they serve. To encourage such VERSARY OF UNVEILING OF SO- to developing programs that train principals on strength, it is important to note the individual JOURNER TRUTH MEMORIAL the best practices to guide teaching and learn- PTAs and PTSAs that excel in this mission as ing in schools. well as the individual Volunteers of the Year. HON. LAURA RICHARDSON The Instructional Leadership Act of 2010 provides grants to State and local educational OF CALIFORNIA I am pleased to congratulate the following agencies to drive gains in academic achieve- IN THE HOUSE OF REPRESENTATIVES on being recognized by the National PTA and ment for all children by: (1) Creating innova- Virginia PTA for 2009–2010 school year: Wednesday, April 28, 2010 tive programs and sites to train principals in $1,000.00 National PTA Healthy Lifestyle Ms. RICHARDSON. Madam Speaker, what instructional leadership skills including devel- Grant: Laurel Hill ES PTA does the unveiling of the Sojourner Truth Me- oping a school vision, staff development, and morial in the U.S. Capitol mean to me? effective instructional practices; (2) Developing $300.00 Virginia PTA Family Fitness Grants: I feel extraordinarily proud to celebrate the pilot programs to evaluate the incorporation of Samuel Tucker ES PTA and Haycock ES PTA one-year anniversary of the unveiling of the standards of instructional leadership into State 2010 National PTA Phoebe Apperson memorial to Sojourner Truth in the United principal certifications; and (3) Establishing Hearst Family-School Partnership Awards of States Capitol. I am inspired by the legacy of state-of-the-art principal induction programs Merit: Fairview ES PTA, Lake Braddock SS Sojourner Truth, who was born a slave and that provide mentoring and on-the-job training PTA, Mosby Woods ES PTA, and White Oaks overcame daunting odds to become one of the for new principals. This legislation is strongly supported by the ES PTA most influential figures in both the women’s rights movement and the African-American National Association of Secondary School 2009–2010 Virginia PTA Superior Member- struggle for equality. Principals, NASSP. It represents a necessary ship Achievement Awards: Falls Church ES The existence of such an eloquent memorial first step towards developing the next genera- PTA, Nottingham ES PTA, Flint Hill ES PTA, statue in her honor in the U.S. Capitol ensures tion of school leaders who are committed to, and Langley HS PTSA that her legacy will never be forgotten. Law- and effective in, increasing student achieve- makers and visitors alike will be reminded of ment. I urge support for this important piece of 2009–2010 Virginia PTA Outstanding Mem- legislation. bership Achievement Award: Peyton Randolph her spirit, dedication and courage each time f ES PTA they pass by her memorial. Just as Sojourner Truth paved the way for so many who came MULTIPLE SCLEROSIS 2009–2010 100 percent Membership after her, this memorial reminds all visitors AWARENESS WEEK Awards: Chesterbrook ES PTA, Falls Church and those who work and serve here that the ES PTA, Flint Hill ES PTA, Langley HS PTSA, fight for freedom is hard fought but worth the SPEECH OF Nottingham ES PTA, and Waynewood ES victory. HON. MARY JO KILROY PTA f OF OHIO 2009–2010 New Unit Charters: Cedar Lane HONORING UNITED WAY OF LONG IN THE HOUSE OF REPRESENTATIVES School PTSA, Laurel Hill ES PTA, Lutie Lewis ISLAND FOR THEIR EXTRAOR- Wednesday, April 21, 2010 Coates ES PTA, Drew Model School PTA, DINARY WORK IN THE COMMU- Ms. KILROY. Madam Speaker, I rise today and Arlington Special Education PTA NITY in support of H. Res. 1116, which expresses 2009 Virginia PTA Volunteer of the Year: support for the goals and ideals of Multiple Sue Bernstein, Hollin Meadows ES PTA HON. STEVE ISRAEL Sclerosis Awareness Week. I want to thank 2010 District Volunteer of the Year Nomi- OF NEW YORK my friend and colleague Representative BAR- BARA LEE for introducing this resolution, which nees (Secondary): Kathy Conrad, Patricia IN THE HOUSE OF REPRESENTATIVES brings attention to a disease that affects an Fausser, John Long, Janet Robinson and Wednesday, April 28, 2010 estimated 400,000 people living in the United Greg Brandon. Mr. ISRAEL. Madam Speaker, I rise today States. 2010 District Volunteer of the Year Nomi- to acknowledge a nonprofit organization that Because I was diagnosed with MS in 2003, nees (Elementary): Karen Hildebrand, Teresa serves my district, United Way of Long Island. I know the importance of research into treat- Willebeek-Lemair, Jenniefer Schantz, Jana United Way has demonstrated an over- ments and a cure for the disease. I support Hollis, Ellen Giblin, Jill Chastain and Christa whelming amount of commitment to serving additional funding for research regarding MS, Soltis. the Long Island community. My constituents Parkinson’s disease, and other neurological rely on our nonprofits for the vital services disorders. MS is a serious disease, but I am Congratulations to Sue Bernstein for being they offer. The continuous selfless efforts of lucky to have insurance that pays for most of named the 2009 Volunteer of the Year and those involved with the United Way of Long Is- the cost of the expensive drugs that slow its best of luck to the 2010 Volunteer of the Year land are admirable. progression and help prevent disability. How- Nominees. I am proud to honor United Way of Long Is- ever, many people diagnosed with MS often A special note of appreciation is deserved land for their extraordinary work in the com- find their necessary medications financially out by the following individuals for their service as munity. of reach. The 111th Congress has taken his- toric action to make health care affordable and elected officers of the Northern Virginia PTA f accessible, to end discrimination against those Executive Board as they complete their term INTRODUCING THE INSTRUC- with pre-existing conditions, and to help peo- in office; District Director Debbie Kilpatrick, 1st TIONAL LEADERSHIP ACT OF 2010 ple control and live well with chronic illness— Asst. District Director Nina Austin, 2nd Asst. keeping them out of wheelchairs or nursing Director Rob Horvath, Secretary Angela HON. JOHN P. SARBANES homes. However, we must continue to work Nesley and Treasurer Donald Cantwell. Thank OF MARYLAND on behalf of our constituents who every day you and those who serve as Committee IN THE HOUSE OF REPRESENTATIVES are dealing with serious health conditions. Chairs for your tireless efforts during the I am pleased that included in the health in- 2008–2010 term in office. Wednesday, April 28, 2010 surance reform law recently signed by the Madam Speaker, I ask my colleagues to join Mr. SARBANES. Madam Speaker, I rise president is the Community Living Assistance today to introduce the Instructional Leadership Services and Supports (CLASS) Act. The with me in recognizing the outstanding Act of 2010, which will strengthen schools by CLASS Act will create an insurance program achievements of the individuals and the PTA/ helping principals to become instructional for the 10 million adults with disabilities in PTSA organizations being recognized. Dedi- leaders. America to help them obtain the services and cated involvement from so many parents re- With the passage of No Child Left Behind, supports they need to stay functional, inde- flects a strong commitment to public education NCLB, school principals often find themselves pendent, and active in their community. It is a and community service that students in our with greater responsibilities. They are account- disgrace that millions of Americans with dis- schools are fortunate to experience. I offer my able for student achievement and the broader abilities are forced to live a life of poverty just strong support for these organizations and goals of NCLB but they lack the appropriate so they can qualify for long-term benefits of- their dedicated volunteers. training and resources needed to accomplish fered by Medicaid. The CLASS Act will allow

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00012 Fmt 0626 Sfmt 9920 E:\CR\FM\A28AP8.024 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS April 28, 2010 CONGRESSIONAL RECORD — Extensions of Remarks E701 people with disabilities to remain functional zation of 400 people in analyzing intelligence HONORING HEALTH AND WELFARE and independent while giving them an oppor- information on foreign missile and space sys- COUNCIL OF LONG ISLAND FOR tunity to receive an education, maintain a job, tems and related technology. THEIR EXTRAORDINARY WORK or join a community group. The work done at MSIC under Ms. McCue’s IN THE COMMUNITY I also want to acknowledge the work of the direction delivers integrated, timely, and high National MS Society, which works tirelessly on confidence intelligence assessments to our HON. STEVE ISRAEL behalf of persons living with MS. Just this past warfighters, weapons system developers, and OF NEW YORK weekend I participated in the Columbus MS policy makers. IN THE HOUSE OF REPRESENTATIVES Walk with my many friends in the Ohio Buck- Madam Speaker, I wish to congratulate Ms. eye Chapter. This walk was just one of many Wednesday, April 28, 2010 Pam McCue on a spectacular career and wish across the country to raise money for research her continued success. Mr. ISRAEL. Madam Speaker, I rise today into MS. to acknowledge a nonprofit organization that Madam Speaker, I look forward to the day serves my district, Health and Welfare Council f when the world is free of MS. I encourage all of Long Island. of my colleagues to join me in finding the REMARKS RECOGNIZING THE Health and Welfare Council has dem- causes, improving the treatments while low- YWCA OF BERGEN COUNTY RAPE onstrated an overwhelming amount of commit- ering their costs, and fighting for a cure for MS CRISIS CENTER AND THEIR AD- ment to serving the Long Island community. and other diseases, so that all Americans can VOCACY OF DENIM DAY My constituents rely on our nonprofits for the live fully active and healthy lives. vital services they offer. Health and Welfare f Council’s continuous acts of selfless efforts HON. STEVEN R. ROTHMAN are admirable. PERSONAL EXPLANATION I am proud to honor Health and Welfare OF NEW JERSEY Council of Long Island for their extraordinary HON. MARK E. SOUDER IN THE HOUSE OF REPRESENTATIVES work in the community. OF INDIANA Wednesday, April 28, 2010 f IN THE HOUSE OF REPRESENTATIVES Mr. ROTHMAN. Madam Speaker, I rise RECOGNIZING OUTSTANDING STU- Wednesday, April 28, 2010 today to recognize the New Jersey Legisla- DENTS IN NORTHERN VIRGINIA Mr. SOUDER. Madam Speaker, yesterday I ture’s declaration of April 28th as Denim Day was unable to vote during rollcall No. 226 be- and to thank advocates across the state for HON. GERALD E. CONNOLLY cause of illness. If I would have been present, their tireless efforts to promote sexual assault OF VIRGINIA I would have voted ‘‘yea.’’ awareness and provide assistance to victims IN THE HOUSE OF REPRESENTATIVES of sexual assault. Recently, New Jersey be- f Wednesday, April 28, 2010 came the newest state to adopt Denim Day as HONORING FAMILY SERVICE an annual event to raise awareness for acts of Mr. CONNOLLY of Virginia. Madam Speak- LEAGUE FOR THEIR EXTRAOR- sexual assault. The establishment of Denim er, I rise today to recognize the achievements DINARY WORK IN THE COMMU- Day across the state of New Jersey is an im- of several students in Northern Virginia. These NITY portant call to action reminding us that we students have participated and excelled in pro- must do everything possible as a community grams administered by their local Parent HON. STEVE ISRAEL and as a nation of laws to stop rape and sex- Teacher Associations and Parent Teacher OF NEW YORK ual assault and help survivors. Student Associations. IN THE HOUSE OF REPRESENTATIVES Denim Day originated in 1998, when a deci- Parent Teacher Associations, PTAs, and Parent Teacher Student Associations, PTSAs, Wednesday, April 28, 2010 sion to overturn a case of sexual assault by the Italian Supreme Court caused outrage serve a critical role in helping to provide the Mr. ISRAEL. Madam Speaker, I rise today among Italian legislators and the public. A best possible educational environment for our to acknowledge a nonprofit organization that statement released by the Head Judge of the students. The Northern Virginia District PTA serves my district, Family Service League. Court stated, ‘‘Because the victim wore very, consists of a region with more than 220 Family Service League has demonstrated very tight jeans, she had to help him remove schools. Schools located throughout northern an overwhelming amount of commitment to them . . . and by removing the jeans . . . it Virginia are consistently recognized as being serving the Long Island community. My con- was no longer assault but consensual sex.’’ among the very best schools in our country. I stituents rely on our nonprofits for the vital The women in the Italian Parliament protested strongly believe one factor in the excellent services they offer. The continuous selfless ef- by wearing jeans on the steps of the Par- education received by our students is the high forts of those involved with Family Service liament building and the protests that followed level of involvement and encouragement pro- League are admirable. eventually spread to the United States. vided by parents through the PTA and PTSAs. I am proud to honor Family Service League I am pleased to congratulate the following for their extraordinary work in the community. The movement that originated in Italy students on being recognized by the National reached New Jersey in 2008 and 2009 when f PTA and Virginia PTA for their outstanding several county-based Sexual Violence Pro- achievements: TRIBUTE TO MS. PAM MCCUE grams in New Jersey launched Denim Day. I 2010 District PTA Citizenship Essay am proud to say that the YWCA of Bergen Awards—High School Division: Trisha Hajela HON. PARKER GRIFFITH County Rape Crisis Center, located in my dis- (10th Grade, Centreville High School), and trict, has been a champion of this cause. OF ALABAMA Katherine DeFazio (12th Grade, James Madi- Today, they will be hosting the third annual IN THE HOUSE OF REPRESENTATIVES son High School). ‘‘Denim Day in NJ’’ in Bergen County. This is 2010 District PTA Citizenship Essay Wednesday, April 28, 2010 also the first year that Denim Day will be ob- Awards—Middle School Division: Bennett Mr. GRIFFITH. Madam Speaker, I rise today served officially throughout the state of New Casciano (7th Grade, South County Sec- to recognize the career of Ms. Pam McCue. Jersey thanks to a New Jersey State Legisla- ondary School), and Cali Willcockson (8th Ms. McCue is the Director of the Missile and ture resolution designating April 28 of each Grade, Liberty Middle School). Space Intelligence Center (MSIC), which is year as Denim Day to promote rape aware- The 2010 PTA Reflections National PTA headquartered at Redstone Arsenal in my dis- ness throughout the state. Nominees are: trict. I commend the ongoing efforts of the YWCA Dance Choreography: Primary Division— Ms. McCue has spent her entire career in of Bergen County Rape Crisis Center to pro- Claire de la Paz (2nd Grade, Herndon Ele- the field of intelligence analysis of foreign mis- vide free and confidential assistance, coun- mentary School PTA) for her dance perform- sile and air defense systems. She assumed seling, and medical and legal services to sur- ance titled ‘‘Free Bird.’’ her current position upon her appointment to vivors of sexual assault. I stand united with Literature: Middle/Junior Division—Eliza the Defense Intelligence Senior Executive the YWCA, survivors of sexual assault, and Malakoff, (7th Grade George Washington Mid- Service in May of 2007. She is responsible for their loved ones in observing this important dle School PTA) for her insightful essay titled planning, organizing, and directing an organi- day. ‘‘No Beauty?’’

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00013 Fmt 0626 Sfmt 9920 E:\CR\FM\A28AP8.027 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS E702 CONGRESSIONAL RECORD — Extensions of Remarks April 28, 2010 Music Composition: Intermediate Division— HONORING LONG ISLAND ADVO- to Michigan becoming a leader in these new Kyle Gatesman, (4th Grade, Canterbury CACY CENTER FOR THEIR EX- industries. Last year the Festival attracted an Woods Elementary School PTA) for his musi- TRAORDINARY WORK IN THE estimated 50,000 Michiganians to its grounds cal composition titled ‘‘Reflections in Color: COMMUNITY in downtown Rochester, all of whom were fo- Variations on a Theme.’’ cused on the ‘‘triple bottom line’’ of economic, Visual Art: Primary Division—Hannah HON. STEVE ISRAEL environmental, and individual prosperity. Cadenazzi, (1st Grade, Great Falls Elemen- OF NEW YORK On its fifth anniversary, the Michigan Earth Day Festival is set to provide its largest plat- tary School PTA) for her interpretative painting IN THE HOUSE OF REPRESENTATIVES titled ‘‘Family.’’ form yet in its effort to draw attention to the Wednesday, April 28, 2010 Visual Art: Intermediate Division—Brittney connection between our environment and our Fogg, (5th Grade, Willow Springs Elementary Mr. ISRAEL. Madam Speaker, I rise today future economic prosperity. This year’s Fes- School PTA) for her authentic drawing titled to acknowledge a nonprofit organization that tival event will host over 200 participants in- ‘‘Beauty is worth looking for.’’ serves my district, Long Island Advocacy Cen- cluding environmental and conservation ter. groups, local governments, green business Visual Art: Middle/Junior Division—Jiwhae Long Island Advocacy Center has dem- owners and others who will be promoting re- Choi, (8th Grade, Rachel Carson Middle onstrated an overwhelming amount of commit- source conservation, green technology devel- School) for the multifaceted vision of ’’Beauty ment to serving the Long Island community. opment, and good stewardship of our environ- is never giving up.’’ My constituents rely on our nonprofits for the ment which will brighten Michigan’s economic 2009 National PTA Award of Excellence: vital services they offer. Long Island Advocacy future while securing our State’s rich natural William Park, (12th Grade, Langley High Center’s continuous acts of selfless efforts are wonders. School) who was recognized at an awards re- admirable. Madam Speaker, I ask all of my colleagues ception at the Department of Energy on Janu- I am proud to honor Long Island Advocacy to join me today in recognizing the work of the ary 16. Center for their extraordinary work in the com- Michigan Earth Day Festival’s organizers and Madam Speaker, I ask my colleagues to join munity. participants towards creating a greener and with me today to recognize the outstanding f stronger Michigan economy. I wish the Fes- achievements of these students. I also ask tival’s organizers and participants many future that we recognize the Northern Virginia District OUR UNCONSCIONABLE NATIONAL years of success as we work together to de- PTA, in partnership with the Virginia PTA, as DEBT velop a renewed, greener and more robust they work diligently to develop the diversity of Michigan economy. talents and skills of students attending schools HON. MIKE COFFMAN f throughout Northern Virginia. It gives me great OF COLORADO HONORING THE WORK OF THE pleasure to acknowledge the achievements of IN THE HOUSE OF REPRESENTATIVES these students and the Parent Teacher Asso- REVEREND DR. WALTER THOMAS Wednesday, April 28, 2010 ciations that support them. RICHARDSON ON THE OCCASION Mr. COFFMAN of Colorado. Madam Speak- OF HIS RETIREMENT FROM f er, today our national debt is SWEET HOME MISSIONARY BAP- $12,886,315,749,582.96. TIST CHURCH HONORING THE LIFE OF ROBERT On January 6th, 2009, the start of the 111th HIESTAND Congress, the national debt was HON. MARIO DIAZ-BALART $10,638,425,746,293.80. OF FLORIDA This means the national debt has increased IN THE HOUSE OF REPRESENTATIVES HON. JOHN LEWIS by $2,247,890,003,289.16 so far this Con- Wednesday, April 28, 2010 OF GEORGIA gress. IN THE HOUSE OF REPRESENTATIVES This debt and its interest payments we are Mr. MARIO DIAZ-BALART of Florida. passing to our children and all future Ameri- Madam Speaker, today I rise to honor and Wednesday, April 28, 2010 cans. thank The Reverend Dr. Walter Thomas Rich- Mr. LEWIS of Georgia. Madam Speaker, on f ardson of South Florida for his 26 years of service to Sweet Home Missionary Baptist Tuesday, March 30, an Atlanta icon passed IN RECOGNITION OF THE FIFTH away. Robert Hiestand sold roses and carna- Church. ANNUAL MICHIGAN EARTH DAY Pastor Richardson’s historic tenure at Sweet tions on the corner of Northside Parkway and FESTIVAL ON THE OCCASION OF West Paces Ferry for 20 years and, in the Home began in October of 1983, and for near- THE 40TH ANNIVERSARY OF ly three decades, he has dedicated his life to process, became a ubiquitous fixture in the EARTH DAY daily routine of Atlantans from all walks of life. serving others. Under his leadership, the par- He was 55 when he passed. ish has achieved great things. Sweet Home HON. GARY C. PETERS transitioned from two-Sunday a month wor- Over the years, Governors, state legislators ships to weekly Sunday worships, as well as and Members of Congress including myself OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES going from one-morning service to two-morn- have stopped for a few kind words and a few ing services. Sweet Home also grew from a beautiful flowers from Robert. Yet it is the stu- Wednesday, April 28, 2010 small facility to a modern and up-to-date facil- dents who often saw him on their way back Mr. PETERS. Madam Speaker, I rise today ity with classrooms, offices and seating capac- and forth from school that have most loudly to recognize the organizers and participants of ity for 500 in 1991. In 2009, the facility grew opined his loss. the fifth annual Michigan Earth Day Festival yet again to house more than 1000 people I have heard a few different versions of how on the occasion of the 40th anniversary of and sits on 24 acres of land. The staff at Robert ended up in Atlanta but the version he Earth Day. As a Member of Congress it is my Sweet Home also grew and now has full-time told was that his motorcycle ran out of gas as privilege to support this forum as we work to employees. During his tenure, Sweet Home he was passing through and he decided to develop Michigan’s green and blue econo- has also been involved in advocating for social stay. For two decades after that, come rain, mies. justice and multicultural integration, protesting come summer heat, come winter cold, come Much like the day it celebrates, the Michi- against hate crimes, drugs and corruption, and what may, Robert’s only condition to go to gan Earth Day Festival brings together taken part in building the first Habitat for Hu- work was whether the flowers could survive. Michiganians from all regions and sectors of manity housing project in Miami-Dade County. The vibrant remembrances of the Atlanta community who recognize that the economic Pastor Richardson has preached and min- community reflect the tremendous impact of vitality of Michigan lies in the innovation and istered across our great nation and around the his character, of his hard work and of his development of our of State’s complementary world, including places like Korea, South Afri- staunch individualism that allowed him to green and blue economies. This festival pro- ca, Haiti and the Caribbean. More than 51 as- carve out his own niche and leave a lasting vides an opportunity for local entrepreneurs, sociate ministers have served with him at impression on the lives of so many. He will be environmentalists, conservationists, civic offi- Sweet Home, and at least 16 are now serving missed and I ask my colleagues to join me in cials and everyday citizens to build the net- as senior pastors and chaplains throughout honoring his contribution to Atlanta. work of human capital infrastructure so critical the country. He has counseled more than 200

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VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00015 Fmt 0626 Sfmt 8472 E:\CR\FM\A28AP8.035 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS E704 CONGRESSIONAL RECORD — Extensions of Remarks April 28, 2010 SENATE COMMITTEE MEETINGS on progress in treating the signature MAY 19 Title IV of Senate Resolution 4, wound of the current conflicts. 9:30 a.m. agreed to by the Senate on February 4, SR–418 Veterans’ Affairs 1977, calls for establishment of a sys- 10 a.m. To hold hearings to examine pending leg- tem for a computerized schedule of all Environment and Public Works islation. meetings and hearings of Senate com- Clean Air and Nuclear Safety Sub- SR–418 mittees, subcommittees, joint commit- committee tees, and committees of conference. To hold an oversight hearing to examine MAY 25 the Nuclear Regulatory Commission. This title requires all such committees 9 a.m. to notify the Office of the Senate Daily SD–406 Homeland Security and Governmental Af- Armed Services Digest—designated by the Rules Com- Airland Subcommittee mittee—of the time, place, and purpose fairs To hold hearings to examine terrorists Closed business meeting to markup those of the meetings, when scheduled, and and guns, focusing on the nature of the provisions which fall under the sub- any cancellations or changes in the threat and proposed reforms. committee’s jurisdiction of the pro- meetings as they occur. SD–342 posed National Defense Authorization As an additional procedure along Judiciary Act for fiscal year 2011. with the computerization of this infor- To hold hearings to examine the in- SR–222 mation, the Office of the Senate Daily creased importance of the Violence 10:30 a.m. Digest will prepare this information for Against Women Act in a time of eco- Armed Services printing in the Extensions of Remarks nomic crisis. Readiness and Management Support Sub- section of the CONGRESSIONAL RECORD SD–226 committee on Monday and Wednesday of each Rules and Administration Closed business meeting to markup those week. To hold hearings to examine voting by provisions which fall under the sub- Meetings scheduled for Thursday, mail, focusing on state and local expe- committee’s jurisdiction of the pro- riences. posed National Defense Authorization April 29, 2010 may be found in the Daily Act for fiscal year 2011. Digest of today’s RECORD. SR–301 United States Senate Caucus on Inter- SR–222 national Narcotics Control 2 p.m. MEETINGS SCHEDULED To hold hearings to examine violence in Armed Services MAY 4 Mexico and Ciudad Juarez and its im- Emerging Threats and Capabilities Sub- committee 9:30 a.m. plications for the United States. Closed business meeting to markup those Judiciary SD–124 provisions which fall under the sub- Crime and Drugs Subcommittee 1 p.m. Joint Economic Committee committee’s jurisdiction of the pro- To hold hearings to examine Wall Street posed National Defense Authorization fraud and fiduciary duties, focusing on To hold hearings to examine how to pro- Act for fiscal year 2011. mote job creation. if jail time can serve as an adequate de- SR–222 terrent for willful violations. Room to be announced 3:30 p.m. SD–226 2:30 p.m. Armed Services 10 a.m. Energy and Natural Resources Strategic Forces Subcommittee Finance National Parks Subcommittee Closed business meeting to markup those To resume hearings to examine the To hold hearings to examine the Na- President’s proposed fee on financial provisions which fall under the sub- tional Park Service’s implementations committee’s jurisdiction of the pro- institutions regarding the Troubled of the American Recovery and Rein- Asset Relief Program (TARP). posed National Defense Authorization vestment Act. Act for fiscal year 2011. SD–215 SD–366 Commission on Security and Cooperation SR–222 5 p.m. in Europe MAY 6 To hold hearings to examine mitigating Armed Services inter-ethnic conflict in the Organiza- 9:30 a.m. Personnel Subcommittee tion for Security and Co-operation in Energy and Natural Resources Closed business meeting to markup those Europe (OCSE) region, focusing on per- Business meeting to consider the nomi- provisions which fall under the sub- sisting tensions. nations of Philip D. Moeller, of Wash- committee’s jurisdiction of the pro- SVC–208/209 ington, and Cheryl A. LaFleur, of Mas- posed National Defense Authorization 2 p.m. sachusetts, both to be a Member of the Act for fiscal year 2011. Health, Education, Labor, and Pensions Federal Energy Regulatory Commis- SR–222 To resume hearings to examine Elemen- sion, and any pending calendar busi- tary and Secondary Education Act ness; to be immediately followed by a MAY 26 (ESEA) reauthorization, focusing on hearing to examine current issues re- improving America’s secondary lated to offshore oil and gas develop- 9:30 a.m. schools. ment including the Department of the Armed Services SD–430 Interior’s recent five year planning an- SeaPower Subcommittee 2:30 p.m. nouncements and the accident in the Closed business meeting to markup those Gulf of Mexico involving the offshore provisions which fall under the sub- Homeland Security and Governmental Af- oil rig Deepwater Horizon. fairs committee’s jurisdiction of the pro- Oversight of Government Management, the SD–366 posed National Defense Authorization Federal Workforce, and the District of 10 a.m. Act for fiscal year 2011. Columbia Subcommittee Appropriations SR–222 To hold hearings to examine work-life Commerce, Justice, Science, and Related 2:30 p.m. programs, focusing on attracting, re- Agencies Subcommittee Armed Services taining and empowering the Federal To hold hearings to examine proposed Closed business meeting to markup the workforce. budget estimates for fiscal year 2011 for proposed National Defense Authoriza- SD–342 the Department of Justice. tion Act for fiscal year 2011. Intelligence SD–192 SR–222 To hold closed hearings to consider cer- Health, Education, Labor, and Pensions tain intelligence matters. To hold hearings to examine ensuring MAY 27 SH–219 fairness for older workers. 9:30 a.m. SD–430 Armed Services MAY 5 2:30 p.m. Closed business meeting to markup the 9:30 a.m. Armed Services proposed National Defense Authoriza- Appropriations SeaPower Subcommittee tion Act for fiscal year 2011. Labor, Health and Human Services, Edu- To hold hearings to examine Navy ship- SR–222 cation, and Related Agencies Sub- building programs in review of the De- committee fense Authorization request for fiscal MAY 28 To hold hearings to examine proposed year 2011 and the Future Years Defense budget estimates for fiscal year 2011 for Program. 9:30 a.m. the National Institutes of Health. SR–222 Armed Services SD–124 Intelligence Closed business meeting to markup the Veterans’ Affairs To hold closed hearings to consider cer- proposed National Defense Authoriza- To hold an oversight hearing to examine tain intelligence matters. tion Act for fiscal year 2011. traumatic brain injury (TBI), focusing SH–219 SR–222

VerDate Mar 15 2010 05:18 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00016 Fmt 0626 Sfmt 8472 E:\CR\FM\M28AP8.000 E28APPT1 jbell on DSKDVH8Z91PROD with REMARKS Wednesday, April 28, 2010 Daily Digest Senate voked on the motion to proceed to consideration of Chamber Action the bill, and the motion was rendered moot. Routine Proceedings, pages S2715–S2769 Page S2729 Measures Introduced: Ten bills and two resolu- A unanimous-consent-time agreement was reached tions were introduced, as follows: S. 3268–3277, and providing for further consideration of the bill at ap- S. Res. 503–504. Pages S2758–59 proximately 12:15 p.m. on Thursday, April 29, 2010; that after the reporting of the bill and the rec- Measures Passed: ognition of Senators Dodd and Shelby to make open- Cost of Living Adjustment: Senate passed H.R. ing statements on the bill, Senator Lincoln then be 5146, to provide that Members of Congress shall not recognized to speak for up to 20 minutes, to be fol- receive a cost of living adjustment in pay during fis- lowed by Senator Chambliss to be recognized for up cal year 2011, clearing the measure for the Presi- to 20 minutes; that on Thursday, no amendments or dent. Page S2768 motions be in order prior to the offering of the Airport and Airway Trust Fund: Senate passed Dodd-Lincoln substitute amendment; and that once H.R. 5147, to amend the Internal Revenue Code of the substitute amendment is offered, it be considered 1986 to extend the funding and expenditure author- read. Pages S2752, S2768 ity of the Airport and Airway Trust Fund, to amend Nominations Received: Senate received the fol- title 49, United States Code, to extend authoriza- lowing nominations: tions for the airport improvement program, clearing Carlton W. Reeves, of Mississippi, to be United the measure for the President. Page S2768 States District Judge for the Southern District of Expressing Condolences to Those Affected by the Mississippi. Tornado in Mississippi: Senate agreed to S. Res. Paul Kinloch Holmes III, of Arkansas, to be 504, expressing the condolences of the Senate to United States District Judge for the Western Dis- those affected by the tragic events following the tor- trict of Arkansas. nado that hit central Mississippi on April 24, 2010. Denise Jefferson Casper, of Massachusetts, to be Page S2768 United States District Judge for the District of Mas- Measures Considered: sachusetts. Restoring American Financial Stability Act— Barry R. Grissom, of Kansas, to be United States Agreement: Senate began consideration of S. 3217, Attorney for the District of Kansas for the term of to promote the financial stability of the United four years. States by improving accountability and transparency Charles Gillen Dunne, of New York, to be United in the financial system, to end ‘‘too big to fail’’, to States Marshal for the Eastern District of New York protect the American taxpayer by ending bailouts, to for the term of four years. protect consumers from abusive financial services Patti B. Saris, of Massachusetts, to be Chair of the practices, after agreeing to the motion to proceed. United States Sentencing Commission. Pages S2726–50 Patti B. Saris, of Massachusetts, to be a Member During consideration of this measure today, Senate of the United States Sentencing Commission for a also took the following action: term expiring October 31, 2015. By 56 yeas to 42 nays (Vote No. 127), three-fifths Dabney Langhorne Friedrich, of Virginia, to be a of those Senators duly chosen and sworn, not having Member of the United States Sentencing Commis- voted in the affirmative, Senate rejected the motion sion for a term expiring October 31, 2015. to close further debate on the motion to proceed to 25 Navy nominations in the rank of admiral. consideration of the bill. Page S2729 Routine lists in the Army and Navy. Subsequently, Senator Reid entered a motion to Pages S2768–69 reconsider the vote by which cloture was not in- Messages from the House: Page S2758 D449

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Measures Referred: Page S2758 pensation and benefits, including special and incen- Measures Placed on the Calendar: Page S2758 tive pays, in review of the Defense Authorization re- quest for fiscal year 2011 and the Future Years De- Executive Reports of Committees: Page S2758 fense Program, after receiving testimony from Wil- Additional Cosponsors: Page S2759 liam J. Carr, Deputy Under Secretary of Defense for Statements on Introduced Bills/Resolutions: Military Personnel Policy; Brenda S. Farrell, Direc- Pages S2759–64 tor, Defense Capabilities and Management, Govern- ment Accountability Office; Carla Tighe Murray, Additional Statements: Pages S2755–58 Senior Analyst, National Security Division, Congres- Amendments Submitted: Pages S2764–67 sional Budget Office; and James R. Hosek, RAND National Security Research Division, Santa Monica, Notices of Hearings/Meetings: Page S2767 California. Authorities for Committees to Meet: Pages S2767–68 MOTOR CARRIER OVERSIGHT Committee on Commerce, Science, and Transportation: Sub- Privileges of the Floor: Page S2768 committee on Surface Transportation and Merchant Record Votes: One record vote was taken today. Marine Infrastructure, Safety, and Security concluded (Total—127) Page S2729 an oversight hearing to examine motor carrier safety Adjournment: Senate convened at 9:30 a.m. and efforts including S. 779, to amend titles 23 and 49, adjourned at 7:26 p.m., until 12:15 p.m. on Thurs- United States Code, to modify provisions relating to day, April 29, 2010. (For Senate’s program, see the the length and weight limitations for vehicles oper- remarks of the Acting Majority Leader in today’s ating on Federal-aid highways, after receiving testi- Record on page S2768.) mony from Anne S. Ferro, Administrator, Federal Motor Carrier Safety Administration, Department of Committee Meetings Transportation; Deborah A.P. Hersman, Chairman, National Transportation Safety Board; Francis (Committees not listed did not meet) France, Commercial Vehicle Safety Alliance, Jac- queline S. Gillan, Advocates for Highway and Auto NATIONAL ENERGY POLICIES Safety, both of Washington, D.C.; David J. Osiecki, Committee on Appropriations: Subcommittee on Energy American Trucking Associations, Inc., Arlington, and Water Development concluded a hearing to ex- Virginia; and Todd Spencer, Owner-Operator Inde- amine a national assessment of energy policies, focus- pendent Drivers Association, Grain Valley, Missouri. ing on significant achievements since the 1970s and PUBLIC LANDS AND FORESTS BILLS an examination of U.S. energy policies and goals in the coming decades, after receiving testimony from Committee on Energy and Natural Resources: Sub- former Representative Philip R. Sharp, and Robert committee on Public Lands and Forests concluded a W. Fri, both of Resources for the Future, Wash- hearing to examine S. 1241, to amend Public Law ington, D.C.; Steven Chu, Secretary of Energy; and 106–206 to direct the Secretary of the Interior and Eric P. Loewen, GE Hitachi Nuclear Energy Amer- the Secretary of Agriculture to require annual per- icas LLC, Wilmington, North Carolina. mits and assess annual fees for commercial filming activities on Federal land for film crews of 5 persons APPROPRIATIONS: COMMODITY FUTURES or fewer, S. 1571 and H.R. 1043, bills to provide TRADING COMMISSION AND SECURITIES for a land exchange involving certain National Forest AND EXCHANGE COMMISSION System lands in the Mendocino National Forest in Committee on Appropriations: Subcommittee on Finan- the State of California, S. 2762, to designate certain cial Services and General Government concluded a lands in San Miguel, Ouray, and San Juan Counties, hearing to examine the President’s proposed budget Colorado, as wilderness, S. 3075, to withdraw certain estimates for fiscal year 2011 for the Commodity Fu- Federal land and interests in that land from location, tures Trading Commission and for the Securities and entry, and patent under the mining laws and dis- Exchange Commission, after receiving testimony position under the mineral and geothermal leasing from Gary Gensler, Chairman, Commodity Futures laws, S. 3185, to require the Secretary of the Interior Trading Commission; and Mary Schapiro, Chairman, to convey certain Federal land to Elko County, Ne- U.S. Securities and Exchange Commission. vada, and to take land into trust for the Te-moak Tribe of Western Shoshone Indians of Nevada, and MILITARY COMPENSATION AND BENEFITS H.R. 86, to eliminate an unused lighthouse reserva- Committee on Armed Services: Subcommittee on Per- tion, provide management consistency by incor- sonnel concluded a hearing to examine military com- porating the rocks and small islands along the coast

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of Orange County, California, into the California CENTERS FOR MEDICARE AND MEDICAID Coastal National Monument managed by the Bureau SERVICES OVERSIGHT of Land Management, and meet the original Con- Committee on Homeland Security and Governmental Af- gressional intent of preserving Orange County’s fairs: Ad Hoc Subcommittee on Contracting Over- rocks and small islands, after receiving testimony sight concluded an oversight hearing to examine from Senators Baucus, Inhofe and Tester; Marcilynn contract management at the Centers for Medicare A. Burke, Deputy Director, Bureau of Land Manage- ment, Department of the Interior; and Faye Krueger, and Medicaid Services, after receiving testimony Acting Associate Deputy Chief, National Forest Sys- from Kay L. Daly, Director, Financial Management tem, Forest Service, Department of Agriculture. and Assurance, Government Accountability Office; and Rodney L. Benson, Director, Office of Acquisi- BUSINESS MEETING tion and Grants Management, Centers for Medicare Committee on Homeland Security and Governmental Af- and Medicaid Services. fairs: Committee ordered favorably reported the fol- lowing business items: ELEMENTARY AND SECONDARY S. 3267, Fire Grants Reauthorization Act of 2010, EDUCATION ACT with an amendment; Committee on Health, Education, Labor, and Pensions: S. 2782, to provide personal jurisdiction in causes Committee continued hearings to examine Elemen- of action against contractors of the United States tary and Secondary Education Act (ESEA) reauthor- performing contracts abroad with respect to mem- ization, focusing on standards and assessments, after bers of the Armed Forces, civilian employees of the receiving testimony from Steven L. Paine, West Vir- United States, and United States citizen employees ginia Superintendent of Schools, Charleston; Gary of companies performing work for the United States W. Phillips, American Institutes for Research (AIR), in connection with contractor activities, with an Washington, D.C.; Charlene Rivera, The George amendment in the nature of a substitute; Washington University Center for Equity and Excel- S. 3167, to amend title 13 of the United States lence in Education, Alexandria, Virginia; Cynthia B. Code to provide for a 5-year term of office for the Schmeiser, ACT, Inc., Iowa City, Iowa; and Martha Director of the Census and to provide for authority and duties of the Director and Deputy Director of L. Thurlow, National Center on Educational Out- the Census, with an amendment; comes (NCEO), Minneapolis, Minnesota. S. 3249, to amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to reauthorize NOMINATIONS the predisaster hazard mitigation program and for Committee on the Judiciary: Committee concluded a other purposes, with an amendment; and hearing to examine the nominations of Robert Neil The Nominations of Todd E. Edelman, Milton C. Chatigny, of Connecticut, to be United States Cir- Lee, Jr., and Judith Anne Smith, all to be an Asso- cuit Judge for the Second Circuit, who was intro- ciate Judge of the Superior Court of the District of duced by Senators Dodd and Lieberman, and John Columbia, Dana Katherine Bilyeu, of Nevada, and A. Gibney, Jr., to be United States District Judge Michael D. Kennedy, of Georgia, both to be a Mem- for the Eastern District of Virginia, who was intro- ber of the Federal Retirement Thrift Investment duced by Senators Webb and Warner, after the Board, and Dennis P. Walsh, of Maryland, to be nominees testified and answered questions in their Chairman of the Special Panel on Appeals. own behalf. h House of Representatives Report Filed: A report was filed today as follows: Chamber Action H. Res. 1305, providing for consideration of the Public Bills and Resolutions Introduced: 16 pub- bill (H.R. 2499) to provide for a federally sanctioned lic bills, H.R. 5159–5174; and 2 resolutions, H. self-determination process for the people of Puerto Con. Res. 270; and H. Res. 1306 were introduced. Rico (H. Rept. 111–468). Page H3013 Pages H3013–14 Additional Cosponsors: Pages H3014–15

VerDate Mar 15 2010 03:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00003 Fmt 0627 Sfmt 0627 E:\CR\FM\D28AP0.REC D28APPT1 jbell on DSKDVH8Z91PROD with DIGEST D452 CONGRESSIONAL RECORD — DAILY DIGEST April 28, 2010 Speaker: Read a letter from the Speaker wherein she of the Government, the contractor, or any subcon- appointed Representative Israel to act as Speaker pro tractor for items developed by the contractor or sub- tempore for today. Page H2939 contractor exclusively at private expense; Suspensions: The House agreed to suspend the rules Pages H2968–69 and pass the following measures: Sessions amendment (No. 2 printed in H. Rept. Improper Payments Elimination and Recovery 111–467) that provides that nothing in the Act or Act: H.R. 3393, amended, to amend the Improper amendments made by it shall be construed to affect Payments Information Act of 2002 (31 U.S.C. 3321 the competition requirements of 10 U.S.C. 2304 note) in order to prevent the loss of billions in tax- (contract competition requirements); Pages H2969–70 payer dollars; Pages H2942–47 Andrews amendment (No. 3 printed in H. Rept. 111–467) that supports a diverse workforce develop- Amending title 39, United States Code, to clar- ment program with respect to career development ify the instances in which the term ‘‘census’’ may for civilian and military personnel in the acquisition appear on mailable matter: H.R. 5148, to amend workforce; Page H2970 title 39, United States Code, to clarify the instances in which the term ‘‘census’’ may appear on mailable Edwards (MD) amendment (No. 5 printed in H. Rept. 111–467) that directs the DOD to engage in matter; Pages H2947–49 outreach to businesses in the vicinity of DOD instal- Authorizing the use of the Capitol Grounds for lations to notify them of opportunities to obtain the National Peace Officers’ Memorial Service: H. contracts and subcontracts to perform work at such Con. Res. 264, to authorize the use of the Capitol installations; Pages H2971–72 Grounds for the National Peace Officers’ Memorial Moore (WI) amendment (No. 6 printed in H. Service; and Pages H2949–50 Rept. 111–467) that specifies that assessment Airport and Airway Extension Act of 2010: metrics required to measure contractor performance H.R. 5147, to amend the Internal Revenue Code of include ‘‘compliance of such contractors with depart- 1986 to extend the funding and expenditure author- ment policy regarding the use of certain small busi- ity of the Airport and Airway Trust Fund and to nesses’’; Pages H2972–73 amend title 49, United States Code, to extend au- Murphy (CT) amendment (No. 7 printed in H. thorizations for the airport improvement program. Rept. 111–467) that specifies that Title IV assist- Pages H2950–52 ance in the legislation (Expansion of the Industrial Implementing Management for Performance and Base) be limited to firms within the national tech- Related Reforms to Obtain Value in Every Ac- nology and industrial base, as defined in section quisition Act of 2010: The House passed H.R. 2500(1) of title 10, United States Code; 5013, to amend title 10, United States Code, to pro- Pages H2973–74 vide for performance management of the defense ac- Quigley amendment (No. 8 printed in H. Rept. quisition system, by a recorded vote of 417 ayes to 111–467) that includes energy efficiency as one of 3 noes, Roll No. 230. Pages H2952–86 the metrics that may be used in performance assess- Agreed to the Buyer motion to recommit the bill ment of defense acquisitions, and would include en- to the Committee on Armed Services with instruc- ergy efficiency of weapons systems as one of the tions to report the same back to the House forthwith items considered in the Secretary of Defense’s review with an amendment by a recorded vote of 419 ayes of defense acquisition guidance; Page H2974 to 1 no, Roll No. 229. Subsequently, Representative Skelton reported the bill back to the House with the Quigley amendment (No. 9 printed in H. Rept. amendment and the amendment was agreed to. 111–467) that directs the Cost Assessment and Pro- Pages H2983–85 gram Evaluation (CAPE) in its next report to Con- Pursuant to the rule, the amendment in the na- gress to (1) assess whether and to what extent pro- ture of a substitute recommended by the Committee gram cost estimators for major defense acquisition on Armed Services now printed in the bill shall be programs are independent and (2) whether a lack of considered as an original bill for the purpose of independence affects their ability to generate reliable amendment under the five-minute rule. Page H2960 cost estimates; Pages H2974–75 Agreed to: Schrader amendment (No. 10 printed in H. Rept. Skelton amendment (No. 1 printed in H. Rept. 111–467) that prohibits the award of contracts for 111–467) that makes various technical corrections to personal services by any DOD component for the the bill. It also provides that nothing in contracts for purpose of obtaining the services of a senior mentor. military purpose non-developmental items shall re- Nothing would prohibit DOD from hiring retired strict or otherwise affect the rights in technical data generals and flag officers as ‘‘senior mentors’’ under

VerDate Mar 15 2010 03:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00004 Fmt 0627 Sfmt 0627 E:\CR\FM\D28AP0.REC D28APPT1 jbell on DSKDVH8Z91PROD with DIGEST April 28, 2010 CONGRESSIONAL RECORD — DAILY DIGEST D453 the highly qualified expert provision of 5 U.S.C. sec- Council within the DOD, supported by existing per- tion 9903 with additional financial disclosure and sonnel and funds, to provide recommendations to the conflict of interest requirements in place; Secretary on budget and policy matters related to the Pages H2975–76 industrial base. Requires an annual report to Con- Childers amendment (No. 12 printed in H. Rept. gress on the Council’s activities (by a recorded vote 111–467) that ensures that training courses for ac- of 417 ayes to 2 noes, Roll No. 228). quisition personnel include market research strategies Pages H2976–77, H2983 to ensure that the surrounding market is considered H. Res. 1300, the rule providing for consideration during the contracting process; Pages H2977–78 of the bill, was agreed to by voice vote after the pre- Dahlkemper amendment (No. 13 printed in H. vious question was ordered without objection. Rept. 111–467) that directs the Secretary of Defense Pages H2952–54 to carry out a program providing for cost savings on Quorum Calls—Votes: Four recorded votes devel- non-developmental items by allowing a contracting oped during the proceedings of today and appear on officer to make an award for an existing contract to pages H2982–83, H2983, H2985 and H2986. an entity submitting a new proposal that provides There were no quorum calls. for a savings of greater than 15%, provided that doing so does not constitute a breach of contract; Adjournment: The House met at 10 a.m. and ad- Pages H2978–79 journed at 7:14 p.m. Kissell amendment (No. 14 printed in H. Rept. 111–467) that requires GAO to do a study of the Committee Meetings items purchased under 37 U.S.C. section 418, and determine if there is sufficient domestic production AGRICULTURE, RURAL DEVELOPMENT, of such items to adequately supply members of the FDA, AND RELATED AGENCIES Armed Forces. Requires DOD to provide to the APPROPRIATIONS House Armed Services Committee, within 6 months Committee on Appropriations: Subcommittee on Agri- of receiving the GAO recommendations, an evalua- culture, Rural Development, Food and Drug Admin- tion of whether items purchased under section 418 istration, and Related Agencies held a hearing on of title 37 should be covered under the Berry Drug Safety. Testimony was heard from Senator Amendment; Pages H2979–80 Grassley; and public witnesses. Grayson amendment (No. 15 printed in H. Rept. 111–467) that requires DOD to give cost at least FINANCIAL SERVICES AND GENERAL equal importance in evaluating competitive proposals GOVERNMENT APPROPRIATIONS for Federal contracts versus other factors or explain any waivers of such requirement; Pages H2980–81 Committee on Appropriations: Subcommittee on Finan- Hare amendment (No. 16 printed in H. Rept. cial Services and General Government held a hearing 111–467) that declares that it is the sense of Con- on FY 2011 Budget Request for the GSA. Testi- gress that the Department of Defense should ensure mony was heard from Martha N. Johnson, Adminis- full compliance throughout the acquisition process trator, GSA. with the Berry Amendment and the Buy American LABOR, HHS, EDUCATION AND RELATED Act. Further, the amendment declares the sense of AGENCIES APPROPRIATIONS Congress that the Department of Defense not pro- cure products made by manufacturers in the United Committee on Appropriations: Subcommittee on Labor, States that violate labor standards as defined under Health and Human Services, Education and Related the laws of the United States; Pages H2981–82 Agencies held a hearing on FY 2011 Budget Over- Hall (NY) amendment (No. 4 printed in H. Rept. view: National Institutes of Health Testimony was 111–467) that requires the Director of the Office of heard from Francis Collins, M.D., Director, NIH, Performance Assessment and Root Cause Analysis Department of Health and Human Services. (’’PARCA’’) to include performance assessments with significant findings in its annual report. It also re- AIR MOBILITY PROGRAMS quires submission of egregious problems (as defined Committee on Armed Services: Subcommittee on Air and by the PARCA Director) to the Armed Services Land Forces held a hearing on Air Mobility Pro- Committees (by a recorded vote of 416 ayes with grams. Testimony was heard from the following offi- none voting ‘‘no’’, Roll No. 227); and cials of the Department of Defense: BG Michelle D. Pages H2970–71, H2982–83 Johnson, USAF, Director, Strategy, Policy, Programs Connolly (VA) amendment (No. 11 printed in H. and Logistics, U.S. Transportation Command; David Rept. 111–467) that creates an Industrial Base M. Van Buren, Acting Assistant Secretary, Air Force,

VerDate Mar 15 2010 03:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00005 Fmt 0627 Sfmt 0627 E:\CR\FM\D28AP0.REC D28APPT1 jbell on DSKDVH8Z91PROD with DIGEST D454 CONGRESSIONAL RECORD — DAILY DIGEST April 28, 2010 Acquisition; LTG Philip M. Breedlove, USAF, Dep- Housing, Department of Housing and Urban Devel- uty Chief of Staff, Operations, Plans and Require- opment; and public witnesses. ments; U.S. Air Force; and BG Richard C. Johnston, USAF, Director, Strategic Planning, Headquarters PROMOTING HAITI’S SMALL/MICRO U.S. Air Force. ENTERPRISE WORKPLACE WHISTLEBLOWER AND Committee on Financial Services: Subcommittee on VICTIMS’ RIGHTS International Monetary Policy and Trade held a hear- ing entitled ‘‘ Promoting Small and Micro Enterprise Committee on Education and Labor: Subcommittee on in Haiti.’’ Testimony was heard from public wit- Workforce Protections held a hearing on Whistle- nesses. blower and Victims’ Rights Provision of H.R. 2067, Protecting America’s Workers Act. Testimony was FINANCIAL CRIMES ENFORCEMENT heard from Jordan Barab, Deputy Assistant Sec- NETWORK OVERSIGHT retary, Occupational Safety and Health Administra- tion, Department of Labor; and public witnesses. Committee on Financial Services: Subcommittee on Oversight and Investigations held a hearing entitled KATRINA/RITA FEMA TRAILER SALES ‘‘ Reviewing FinCEN Oversight Reports.’’ Testi- Committee on Energy and Commerce: Subcommittee on mony was heard from James H. Freis, Jr., Director, Commerce, Trade and Consumer Protection held a Financial Crimes Enforcement Network (FinCEN), hearing entitled ‘‘Public Sales of Hurricane Katrina/ Department of the Treasury; Eric Thorson, Inspector Rita FEMA Trailers: Are They Safe or Environ- General, Department of the Treasury; the following mental Time Bombs?’’ Testimony was heard from officials of the GAO: Richard J. Hillman, Managing David Garratt, Associate Administrator, FEMA Mis- Director, Financial Markets and Community Invest- sion Support Bureau, Department of Homeland Se- ment; and Eileen Regen Larence, Director, Home- curity; James J. Jones, Deputy Assistant Adminis- land Security and Justice Issues. trator, Office of Prevention, Pesticides, and Toxic Substances, EPA; Steven Kempt, Acting Commis- MISCELLANEOUS MEASURES sioner, Federal Acquisition Service, GSA; Corey Committee on Foreign Affairs: Ordered reported the fol- Hebert, M.D., Chief Medical Officer, Recovery lowing bills: H.R. 4128, amended, Conflict Minerals School District, Department of Education, State of Trade Act; H.R. 5138, International Megan’s Law of Louisiana; and public witnesses. 2010; H.R. 4801, amended, Global Science Program CLEAN ENERGY POLICIES REDUCING OIL for Security, Competitiveness, and Diplomacy Act of DEPENDENCE 2010; H.R. 5139, Extending Immunities to the Of- fice of the High Representative and the International Committee on Energy and Commerce: Subcommittee on Civilian Office in Kosovo Act of 2010, and S. 1067, Energy and Environment held a hearing on Clean Lord’s Resistance Army Disarmament and Northern Energy Policies That Reduce Our Dependence on Uganda Recovery Act of 2009. Oil. Testimony was heard from Lisa Jackson, Ad- ministrator, EPA; and public witnesses. ENERGY DEMONSTRATION PROJECT: ANTIBIOTIC RESISTENCE OVERSIGHT OFFICERS OF THE HOUSE Committee on Energy and Commerce: Subcommittee on Committee on House Administration: Approved Com- Health held a hearing entitled ‘‘Antibiotic Resist- mittee Resolution 111–8, Energy Demonstration ance and the Threat to Public Health.’’ Testimony Project Authorization. was heard from the following officials of the Depart- The Committee also held a hearing on Oversight ment of Health and Human Services: Thomas R. of the Clerk, Sergeant at Arms, Chief Administrative Frieden, M.D., Director, Centers for Disease Control Officer and Inspector General of the House of Rep- and Prevention; and Anthony S. Fauci, M.D., Direc- resentatives. Testimony was heard from the following tor, National Institute of Allergy and Infectious Dis- officials of the House: Lorraine C. Miller, Clerk; eases. Wilson Livingood, Sergeant at Arms; Daniel P. Beard, Chief Administrative Officer; and Theresa PRESERVE PUBLIC HOUSING Grafenstine, Acting Inspector General. Committee on Financial Services: Subcommittee on Housing and Community Opportunity held a hear- CREDIT CARD FAIR FEE ACT ing entitled ‘‘Legislative Proposals to Preserve Public Committee on the Judiciary: Held a hearing on H.R. Housing.’’ Testimony was heard from Sandra 2695, Credit Card Fair Fee Act of 2009. Testimony Henriquez, Assistant Secretary, Public and Indian was heard from public witnesses.

VerDate Mar 15 2010 03:51 Apr 29, 2010 Jkt 089060 PO 00000 Frm 00006 Fmt 0627 Sfmt 0627 E:\CR\FM\D28AP0.REC D28APPT1 jbell on DSKDVH8Z91PROD with DIGEST April 28, 2010 CONGRESSIONAL RECORD — DAILY DIGEST D455 UNMANNED MILITARY DRONE SMALL BUSINESS TRADE POLICY TARGETING Committee on Small Business: Held a hearing entitled Committee on Oversight and Government Reform: Sub- ‘‘Evaluating the Impact of Small Business Trade Pol- committee on National Security and Foreign Affairs icy on Job Creation and Economic Growth.’’ Testi- continued hearings entitled ‘‘The Rise of the Drones mony was heard from public witnesses. II: Examining the Legality of Unmanned Targeting.’’ COLUMBIA RIVER—SAN FRANCISCO BAY Testimony was heard from public witnesses. PROTECTION PUERTO RICO DEMOCRACY ACT Committee on Transportation and Infrastructure: Sub- Committee on Rules: committee on Water Resources and Environment Granted, by a non-record vote, a continued hearings on Protecting and Restoring structured rule providing for consideration of H.R. America’s Great Waters, Part II: The Columbia 2499, the ‘‘Puerto Rico Democracy Act of 2009.’’ River and San Francisco Bay. Testimony was heard The rule provides one hour and 30 minutes of gen- from Representatives Hastings of Washington; eral debate with one hour equally divided and con- Blumenauer and Speier; Nancy Stoner, Deputy As- trolled by the Chair and Ranking Minority Member sistant Administrator, EPA; and public witnesses. of the Committee on Natural Resources and 30 min- utes controlled by Representative Vela´zquez of New BRIEFING—HOT SPOTS York. The rule waives all points of order against Permanent Select Committee on Intelligence: Sub- consideration of the bill except clauses 9 and 10 of committee on Terrorism, Human Intelligence, Anal- rule XXI. The rule provides that the amendment in ysis and Counterintelligence me in executive session the nature of a substitute recommended by the Com- to receive a briefing on Hot Spots. The Sub- mittee on Natural Resources now printed in the bill committee was briefed by departmental witnesses. shall be considered as an original bill for the purpose of amendment and shall be considered as read. The rule waives all points of order against that amend- Joint Meetings ment in the nature of a substitute except for clause COMPREHENSIVE IRAN SANCTIONS, 10 of rule XXI. ACCOUNTABILITY, AND DIVESTMENT ACT The rule makes in order only those amendments Conferees printed in the report of the Committee on Rules. met to resolve the differences between the The amendments made in order may be offered only Senate and House passed versions of H.R. 2194, to in the order printed in the Rules Committee report, amend the Iran Sanctions Act of 1996 to enhance may be offered only by a Member designated in the United States diplomatic efforts with respect to Iran report, shall be considered as read, shall be debatable by expanding economic sanctions against Iran, but for the time specified in the report equally divided did not complete action thereon, and recessed subject and controlled by the proponent and an opponent, to the call. shall not be subject to amendment, and shall not be f subject to a demand for a division of the question. COMMITTEE MEETINGS FOR THURSDAY, All points of order against the amendments except APRIL 29, 2010 for clauses 9 and 10 of rule XXI are waived. The rule provides one motion to recommit with or with- (Committee meetings are open unless otherwise indicated) out instructions. The rule provides that the Chair Senate may entertain a motion that the Committee rise only Committee on Appropriations: Subcommittee on Transpor- if offered by the chair of the Committee on Natural tation, Housing and Urban Development, and Related Resources or his designee. The Chair may not enter- Agencies, to hold hearings to examine proposed budget tain a motion to strike out the enacting words of the estimates for fiscal year 2011 for the Federal Railroad Ad- bill (as described in clause 9 of rule XVIII). Testi- ministration and the National Railroad Passenger Cor- mony was heard from Chairman Rahall, Representa- poration (Amtrak), 9:30 a.m., SD–138. tives Rangel, Gutierrez, Vela´zquez, Hastings of Subcommittee on Financial Services and General Gov- Washington and Foxx; and Resident Commissioner, ernment, to hold hearings to examine holding banks ac- Pedro R. Pierluisi, Puerto Rico. countable, focusing on if treasury and banks are doing enough to help families save their homes, 2:30 p.m., AMERICA COMPETES REAUTHORIZATION SD–192. Subcommittee on Legislative Branch, to hold hearings Committee on Science and Technology: Ordered reported, to examine proposed budget estimates for fiscal year 2011 as amended, H.R. 5116, America COMPETES Reau- for the Library of Congress and the Open World Leader- thorization Act of 2010. ship Center, 3:30 p.m., SD–138.

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Committee on Armed Services: to receive a closed briefing Ward, to be United States Marshal for the District of on United States policy towards Yemen and Somalia, North Dakota, Clifton Timothy Massanelli, to be United 9:30 a.m., SVC–217. States Marshal for the Eastern District of Arkansas, and Committee on Banking, Housing, and Urban Affairs: Sub- Zane David Memeger, to be United States Attorney for committee on Economic Policy, to hold hearings to ex- the Eastern District of Pennsylvania, all of the Depart- amine short-termism in financial markets, 10 a.m., ment of Justice, Kimberly J. Mueller, to be United States SD–538. District Judge for the Eastern District of California, Committee on Commerce, Science, and Transportation: Sub- Richard Mark Gergel, and J. Michelle Childs, both to be committee on Consumer Protection, Product Safety, and United States District Judge for the District of South Insurance, to hold hearings to examine children’s privacy, Carolina, and Catherine C. Eagles, to be United States focusing on new technologies and the Children’s Online District Judge for the Middle District of North Carolina, Privacy Protection Act, 10 a.m., SR–253. 10 a.m., SD–226. Committee on Energy and Natural Resources: business Select Committee on Intelligence: to hold closed hearings to meeting to consider the nomination of Jeffrey A. Lane, of consider certain intelligence matters, 2:30 p.m., SH–219. Virginia, to be Assistant Secretary of Energy for Congres- sional and Intergovernmental Affairs, time to be an- House nounced, room to be announced. Committee on Armed Services, hearing on Security and Committee on Finance: Subcommittee on International Stability in Pakistan: Developments in U.S. Policy and Trade, Customs, and Global Competitiveness, to hold Funding, 10 a.m., 2118 Rayburn. hearings to examine doubling United States exports, fo- Committee on Energy and Commerce, Subcommittee on cusing on United States seaports, 1 p.m., SD–215. Commerce, Trade and Consumer Protection, hearing on Committee on Foreign Relations: to hold hearings to exam- the Consumer Product Safety Enhancement Act, 10 a.m., ine historical and modern context for United States-Rus- 2322 Rayburn. sian arms control, 2:30 p.m., SD–419. Subcommittee on Communications, Technology and Committee on Health, Education, Labor, and Pensions: to the Internet, hearing entitled ‘‘The National Broadband resume hearings to examine Elementary and Secondary Plan: Competitive Availability of Navigation Devices,’’ Education Act (ESEA) reauthorization, focusing on meet- 10 a.m., 2123 Rayburn. ing the needs of special populations, 10 a.m., SD–430. Committee on Financial Services, Subcommittee on Capital Committee on Homeland Security and Governmental Affairs: Markets, Insurance, and Government Sponsored Enter- Subcommittee on Oversight of Government Management, prises, hearing entitled ‘‘Credit Default Swaps on Govern- the Federal Workforce, and the District of Columbia, to ment Debt: Potential Implications of the Greek Debt hold hearings to examine developing Federal employees Crisis,’’ 10 a.m., 2128 Rayburn. and supervisors, focusing on mentoring, internships, and Committee on Homeland Security, Subcommittee on Man- training in the Federal government, 2:30 p.m., SD–342. agement, Investigations, and Oversight, hearing entitled Committee on Indian Affairs: to hold hearings to examine ‘‘Laying the Framework for the Task Ahead: An Examina- S. 2802, to settle land claims within the Fort Hall Res- tion of the Department of Homeland Security’s Quadren- ervation, S. 1264, to require the Secretary of the Interior nial Homeland Security Review,’’ 10 a.m., 311 Cannon. to assess the irrigation infrastructure of the Pine River In- Committee on the Judiciary, Subcommittee on the Con- dian Irrigation Project in the State of Colorado and pro- stitution, Civil Rights, and Civil Liberties, hearing on vide grants to, and enter into cooperative agreements Protecting the American Dream Part II: Combating Pred- with, the Southern Ute Indian Tribe to assess, repair, re- atory Lending Under the Fair Housing Act, 1 p.m., 2141 habilitate, or reconstruct existing infrastructure, and S. Rayburn. 439, to provide for and promote the economic develop- Committee on Transportation and Infrastructure, to mark ment of Indian tribes by furnishing the necessary capital, up the following: H.R. 5128, To designate the Depart- financial services, and technical assistance to Indian- ment of the Interior Building in Washington, District of owned business enterprises, to stimulate the development Columbia, as the ‘‘Stewart Lee Udall Department of Inte- of the private sector of Indian tribal economies, 2:15 rior Building’’; H. Con. Res. 263, Authorizing the use of p.m., SD–628. the Capitol Grounds for the District of Columbia Special Committee on the Judiciary: business meeting to consider Olympics Law Enforcement Torch Run; H. Con. Res. S. 1346, to penalize crimes against humanity and for 247, Authorizing the use of the Capitol Grounds for the other purposes, S. 657, to provide for media coverage of Greater Washington Soap Box Derby; H. Res. 1278, In Federal court proceedings, S. 446, to permit the tele- Support and recognition of National Safe Digging Month, vising of Supreme Court proceedings, S. Res. 339, to ex- April 2010; H. Res. 1284, Supporting the goals and press the sense of the Senate in support of permitting the ideals of National Learn to Fly Day, and for other pur- televising of Supreme Court proceedings, S. 1684, to es- poses; a resolution supporting the goals and ideals of Na- tablish guidelines and incentives for States to establish tional Train Day; U.S. Army Corps of Engineers Survey criminal arsonist and criminal bomber registries and to Resolutions, and other pending business, 11 a.m., 2167 require the Attorney General to establish a national Rayburn. criminal arsonist and criminal bomber registry program, Subcommittee on Economic Development, Public and the nominations of David B. Fein, to be United Buildings, and Emergency Management, hearing on Pro- States Attorney for the District of Connecticut, Paul posed Fiscal Year 2011 Budgets for Regional Economic

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Development Commissions, Priorities and Impacts on Re- on VA’s Implementation of the Enhanced Contract Care gional Economics and Employment, 2 p.m., 2167 Ray- Pilot Program, 10 a.m., 334 Cannon. burn. Committee on Ways and Means, Subcommittee on Trade, Committee on Veterans’ Affairs, Subcommittee on Eco- hearing on U.S.-Cuba Policy, 10 a.m., 1100 Longworth. nomic Opportunity, hearing on Status of Veterans’ Small Permanent Select Committee on Intelligence, executive, brief- Businesses, 1 p.m., 334 Cannon. ing on Flight 253 Forensics, 1:30 p.m., 304 HVC. Subcommittee on Health, to mark up the following measures: H.R. 1017, Chiropractic Care Available to All Joint Meetings Veterans Act; H.R. 2506, Veterans Hearing and Assess- Joint Economic Committee: to hold hearings to examine ment Act; and draft legislation on Continuing Profes- long-term unemployment, focusing on causes, con- sional Education Reimbursement, followed by a hearing sequences and solutions, 2 p.m., 210, Cannon Building.

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 12:15 p.m., Thursday, April 29 10 a.m., Thursday, April 29

Senate Chamber House Chamber Program for Thursday: Senate will continue consider- Program for Thursday: Consideration of H.R. 2499— ation of S. 3217, Restoring American Financial Stability Puerto Rico Democracy Act (Subject to a Rule). Act.

Extensions of Remarks, as inserted in this issue

HOUSE Israel, Steve, N.Y., E689, E690, E692, E693, E695, E699, Norton, Eleanor Holmes, D.C., E698 E700, E701, E701, E702 Perlmutter, Ed, Colo., E689 Barrett, J. Gresham, S.C., E692 Jackson Lee, Sheila, Tex., E690, E692 Peters, Gary C., Mich., E702 Brady, Kevin, Tex., E694 Johnson, Sam, Tex., E689, E690, E692, E693, E695, Richardson, Laura, Calif., E700 Brady, Robert A., Pa., E697 E696, E698 Rogers, Mike, Ala., E694 Kilroy, Mary Jo, Ohio, E700 Coffman, Mike, Colo., E702 Rothman, Steven R., N.J., E701 King, Steve, Iowa, E696 Connolly, Gerald E., Va., E699, E701 Ruppersberger, C.A. Dutch, Md., E694 Kucinich, Dennis J., Ohio, E689, E691, E692, E693, E695 Courtney, Joe, Conn., E698 Lewis, John, Ga., E702 Ryan, Tim, Ohio, E695 Davis, Danny K., Ill., E691 McClintock, Tom, Calif., E699 Salazar, John T., Colo., E697 Diaz-Balart, Mario, Fla., E702 Markey, Edward J., Mass., E691 Sa´ nchez, Linda T., Calif., E696 Ellsworth, Brad, Ind., E699 Miller, Jeff, Fla., E696, E697, E699 Sarbanes, John P., Md., E700 Griffith, Parker, Ala., E701 Moore, Dennis, Kans., E694 Sessions, Pete, Tex., E695 Halvorson, Deborah L., Ill., E699 Moran, James P., Va., E691 Souder, Mark E., Ind., E701

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