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

Vol. 144 WASHINGTON, THURSDAY, MARCH 19, 1998 No. 31 Senate The Senate met at 9:30 a.m. and was tive session to resume consideration of sure papers across the country and the called to order by the President pro the NATO expansion treaty. All Sen- electronic media outlets, were report- tempore [Mr. THURMOND]. ators with amendments to the resolu- ing on the President’s assertion that tion of ratification are encouraged to our side of the aisle has somehow PRAYER contact the managers of the treaty shortchanged education. The Chaplain, Dr. Lloyd John with their amendments with the hope I find this to be exceedingly ironic as Ogilvie, offered the following prayer: of making considerable progress on the I stand here in the midst of the fourth Gracious God, we want to live this treaty during today’s session. filibuster over the last several months orchestrated by the President and his entire day with a sure sense of Your Also, as under a previous consent, at administration to block massive edu- presence. We desire to do every task for 4:45 p.m., the Senate will begin 30 min- cation proposals that vast majorities of Your glory and speak every word utes of debate relative to H.R. 2646, the the American people support. knowing You are listening. Remind us Coverdell A+ education bill, prior to the previously scheduled 5:15 p.m. clo- We weathered a filibuster to get to that every thought, feeling, and atti- the bill. Now, we have made offers to tude we have is open to Your scrutiny. ture vote on the bill. As a reminder to all Members, first-degree amendments the other side so that they can bring We commit ourselves to work for You their package for an open debate. They with excellence so that, when this day to H.R. 2646 must be filed by 1 p.m. today and second-degree amendments do not want to do that. Then we said, is done, we will have that sheer delight well, let us try to bring order to the of knowing we did our best for You. must be filed by 4:15 p.m. In addition, the Senate may consider process and have the amendments per- Help us to use things and love people any other legislative or executive busi- tain strictly to the education issue. rather than using people and loving ness cleared for Senate action. There- They rejected that. things. Grant us the ability to commu- fore, Members can anticipate rollcall So basically you have a strategy, nicate esteem and affirmation to the votes throughout today’s session of the through two events, to not allow us to people with whom we work all through Senate. end the filibuster or to just go from this day. Help us to take time to ex- Mr. President, it is my understanding amendment to amendment, many of press our gratitude for who people are, that the next 30 minutes are under my which have nothing to do whatsoever not just for what they do. Make us sen- control or my designee’s. with education. sitive to those burdened with worries, f So on the front page we have the problems, or heartaches and help us to President saying that our side of the make time to listen to them. May we RESERVATION OF LEADER TIME aisle is not stepping forward on edu- take no one for granted. In the name of The PRESIDING OFFICER (Mr. cation, but in the Halls of Congress and our blessed Lord. Amen. BROWNBACK). Under the previous order, here where we are doing the people’s f the leadership time is reserved. business, he is orchestrating a fili- buster. And it is the fourth or fifth one RECOGNITION OF THE ACTING f on education proposals. MAJORITY LEADER MORNING BUSINESS People might rightly ask, well, what The PRESIDENT pro tempore. The The PRESIDING OFFICER. Under is the cost of this filibuster? What hap- able acting majority leader, the distin- the previous order, there will now be a pens if the President is successful in guished Senator from Georgia, is recog- period for the transaction of morning blocking these education proposals? nized. business for not to extend beyond the Well, first and foremost, 14 million Mr. COVERDELL. Thank you, Mr. hour of 11:30 a.m., with Senators per- American families with children in President. mitted to speak for not to exceed 5 school—most of which are in public f minutes each. schools, many of which are in private Under the previous order, the hour of or home schools—will be denied if this SCHEDULE 9:30 a.m. having arrived, the Senator filibuster continues. If we cannot end Mr. COVERDELL. Mr. President, this from Georgia, or his designee, is recog- it, 14 million American families with morning the Senate will be in a period nized to speak for up to 30 minutes. children in school who would be given of morning business, to accommodate a f an education savings account as a tool number of Members who have re- to help them deal with their children’s quested time to speak, until 11:30 a.m. THE A+ EDUCATION BILL needs will be blocked dead. Under a previous agreement, at 11:30 Mr. COVERDELL. Mr. President, this There will be no account, which a.m., the Senate will proceed to execu- morning’s Washington Post, and I am means that these American families

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

S2237 S2238 CONGRESSIONAL RECORD — SENATE March 19, 1998 will be denied an opportunity to save I think, given the President’s com- I just have to say on the ledger of upwards to $10 billion-plus over the ments, this last point is very salient. If events, that is insane. It is utterly in- next 8 years. So billions of dollars that the filibuster continues, $3 billion in credible, an egregious burden to put on would come to the support of children new tax-exempt private activity bonds, an attempt to help so many and so eas- in classrooms all across the country, which would build schools all across ily. I have been surprised at how little which everybody acknowledges is a our land—and if I have heard that once, an incentive is required to cause Amer- problem, will never appear, not a dime. I have heard it a thousand times here: icans to save. It is staggering. These Those savings will not occur, and that we need to be concerned about building billions of dollars that would go into support will not occur. new schools, and there are dilapidated the savings account are going in there So some 20 million children will miss schools. The Senator from North Da- because they will save taxes on the in- this opportunity to be helped to get a kota was talking about it yesterday. terest buildup. So, over the next 5 home computer, to be helped to get a Well, with the guidance of Senator years, we will leave $750 million—less tutor, a special-education requirement, GRAHAM of Florida, this provision that than $1 billion—in these savings ac- after-school transportation, a school is being filibustered would make avail- counts. We won’t tax that. That will band uniform, you name it. All of those able $3 billion—$3 billion—in new con- cause 14 million families to open an ac- things that those billions of dollars struction possibilities across the land. count and to save over $5 billion. There would buy are not going to happen if And 186 school districts all across the are not many things we can do around this filibuster continues. country that are crunched by rapid this town that leverage themselves Everybody has read week in and growth would be denied a supplemental that well. That is 15 to 1. I wish we week out a report about the problems activity to build these schools for these could do this all day long. we are having in grades kindergarten fast-growing communities. through high school. And everybody is These education savings accounts, 70 Fourteen million families, 20 million percent of the families who use them reading about how difficult it is to pay children, 1 million students in college for college. ‘‘So let us filibuster an at- will have children in public schools, 30 State prepaid tuition plans, 21 States, percent will have children in private or tempt to bring all these resources to- 17 new States, 1 million workers, gether and deny the American people home schools. The Joint Tax Commit- 250,000 graduate students, and $3 billion tee says that the money will probably the opportunity to do it.’’ for new schools—none of it will happen, If the filibuster succeeds, one million be about evenly divided, $2.5 billion zero—zero, a flat straight line. And it supporting students in public, $2.5 bil- students who will benefit from tax re- will rest at the feet of the President of lief on State prepaid tuition plans— lion supporting students in private. the United States. He has consciously State prepaid tuition plans are plans That is probably initially the case, be- tried to block this provision for well where families can buy their child’s cause it costs more to go to a private over a year. college tuition in advance. States led school and those families will probably Now, the obvious question is, why? save more; they will try harder, be- the way almost a decade ago in this Why would anybody stand in the way idea to help families, to guarantee edu- cause they are paying for public edu- of 14 million families, 20 million stu- cation through their property tax base cation at quality State universities. dents, these 21 States, 1 million work- One million students who are in and the private school has to be put on ers? What in the world would anybody these plans, when they draw the money top of it. So they probably will save a do that for? This is it. No matter what out, will be taxed on it if the filibuster little more initially. is said, how much smoke and mirrors continues. Twenty-one States have we have around it, it is because he is The one thing that the Joint Tax these plans: Alabama, Alaska, Colo- wedded to the status quo and the Na- Committee has not evaluated as yet, rado, Florida, Indiana, Kentucky, Lou- tional Education Association does not and in my closing minutes here I want isiana, Maryland, Massachusetts, want this to happen. Kind of hard to to talk about, is that probably more Michigan, Mississippi, Ohio, Pennsyl- believe. You would think that an orga- important than the money is that vania, Tennessee, Texas, Utah, Vir- every time a family opens a savings ac- ginia, Washington, West Virginia, Wis- nization dedicated to education would want all these millions of families to count, there is a switch that goes on. consin and Wyoming. That family suddenly has a financial Seventeen more States are putting take advantage of it. But here is the point. We really instrument that is dedicated to their these plans in place: Arizona, Arkan- child’s education, and from that point sas, California, Connecticut, Delaware, ought to call it a pinhead or a sliver the width of a hair, the fact that some forward every time they get that slip Maine, Minnesota, Montana, Nevada, that tells them how much is in the ac- New Hampshire, New Jersey, New Mex- families, some of these 14 million fami- lies, which have to be statistically in- count, they are going to be thinking ico, New York, North Carolina, Okla- about how they will use that account homa, Oregon, and Rhode Island. significant, but some of them will take the money they have put in the ac- and what problem is their child having This movement to help States, help that needs attention. their students get good quality univer- count—remember, everybody, it is I know this personally because years sity educations in these quality univer- their money. This is not tax money; and years ago my father and I opened a sity systems—it will not happen. And this is their money that they put in the it will slow down the States that do it. savings account to help their children. savings account for two sets of twins. And those that do have these plans and It has been voluntary. We have not had To this day, we still get a slip from the the student gets the money, they are to raise taxes a dime to do any of these savings and loan association that tells going to be taxed, so they will have things. We have just encouraged Amer- us how much is left in it and how much less resources. icans to do it for themselves. it built up. It was all used for edu- One million workers in America, in- Several thousand of them will take cation. If this had been the case, my cluding 250,000 graduate students, the money in the savings account and dad and I would have had twice the would benefit from tax-free employer- will pay tuition for their child to go to money that we ultimately saved. From provided education assistance. In other a different school. For that reason, we that point on, we were reminded over words, an employer in America could are in the fourth or fifth filibuster and and over and over about that situation pay up to $5,250 for one of their em- we are going to stop all of these things. because of that account. Clearly, it ployees to advance their education or We are going to stop savings, we are adds a new focus. It is like a massive to upscale it or to improve it. And the going to stop the tax relief, we are PTA, so to speak. money would go to the employee with- going to hinder the State setting up Now, the other feature that is equal- out being taxed as if it were income, the State tuition plans, we are going to ly important is that, unlike any other which is what happens now. That isn’t stop the million workers, we are going savings account of this type, sponsors going to happen if the filibuster contin- to stop the $3 billion in school con- can contribute to the child’s savings. ues. These one million workers and struction, because a handful of families Not just the family, but when grand- these 250,000 graduates will just be in might use their own money to make a mother comes to the birthday, instead tough luck. The money is not going to decision for a child to go from a public of a gift that is tossed away as old 24 come to them. If it does, it is taxed. school to a private school. hours later, she can contribute to the March 19, 1998 CONGRESSIONAL RECORD — SENATE S2239 savings account, which will last a life- when you are orchestrating a filibuster Mr. REED. I ask unanimous consent time. And they will, and so will uncles that denies millions of American fami- that the order for the quorum call be and aunts, even neighbors. lies an advantage in education, to go rescinded. Every time I talk about these savings out on the stage and point the finger at The PRESIDING OFFICER. Without accounts, corporations, you can see the our side of the aisle and say we are not objection, it is so ordered. wheels start to turn, because they are doing anything for education. No won- Mr. REED. Mr. President, I thank the saying to themselves, ‘‘I could watch der this town reeks with cynicism. No Chair. my employees, and we can both con- wonder. I am trying, I say to the chap- f tribute to those savings accounts. This lain, to be conscious of the prayer, CHILDREN’S HEALTH PRESERVA- would be a good thing for our company which was beautiful. But that is cyni- TION AND TOBACCO ADVERTIS- to do.’’ Or labor unions or churches, be- cal. ING COMPLIANCE ACT nevolent associations—it is limitless, I cannot think of a single loser in the imagination of the American peo- this legislation, not one; everybody is a Mr. REED. Mr. President, I rise ple. We have read about these philan- winner. That doesn’t happen around today to discuss my legislation S. 1755, thropists using scholarships to help el- here very often. Usually on tax policy legislation that would amend the Inter- ementary schools: ‘‘We will give them and the like, somebody is a winner at nal Revenue Code to deny tobacco com- a new school.’’ These philanthropists the expense of somebody else. Any panies any tax deduction for their ad- will be able to open these savings ac- child in America, no matter where they vertising and promotional expenses counts early on and assure a quality go to school, no matter the family cir- when those expenses are directed at the college education. The ideas that will cumstances, they have a chance to cre- most impressionable group in our soci- come around these savings accounts, in ate a new tool to help deal with the ety, children. that they allow sponsors, have yet to educational needs of their children. In a recent editorial in the Journal of be fully thought of, because Americans And it helps confront the high costs the American Medical Association, are so ingenious. of college in two ways. Savings ac- Doctors C. Everett Koop, David And none of the value of those spon- counts could be kept until college. We Kessler, and George Lundberg wrote, sors is in any of the financial esti- protect the tax relief tuition plans in ‘‘For years the tobacco industry has mates. It will be billions, billions in 21 States, with 17 States coming behind marketed products that it knew caused dollars, creating one of the largest it, 1 million workers getting back into serious disease and death. Yet, it inten- new—all of this is new money, not redi- education, 250,000 graduate students, $3 tionally hid this truth from the public, rected; this is volunteered money, com- billion in new school construction—$3 carried out a deceitful campaign de- ing forward from a family’s own check- billion. And there is not a single loser. signed to undermine the public’s appre- ing accounts—no property taxes having We would throw it all away, throw it ciation of these risks, and marketed its to be raised, no taxes having to be all out, because some few families addictive products to children.’’ raised at the Federal level. These are would use their savings account, which Numerous studies have implicated folks coming forward on their own, so is their money, to pay tuition in an- the tobacco industry, their advertising it is all new. And it is smart money. It other school. That is incredible and and promotional activities, as a major is smart money because it is directed disappointing and cynical and denying cause in the continued increase in right at the child’s need. Public dollars of real benefits to the people of our Na- youth smoking throughout the United have a hard time doing that. tion suffering a massive, massive prob- States in recent years. Research on Public dollars have a hard time find- lem. smoking demonstrates that increases ing that tutor for the math-deficient Let me conclude by saying this: This in youth smoking directly coincide student, but the parents know what the has been a very strong bipartisan ef- with effective tobacco promotional ac- problem is, or should, and hopefully fort. My cosponsor is Senator ROBERT tivities. this will help them think about it. TORRICELLI from New Jersey, from the My legislation, S. 1755, addresses this They can put the money right on tar- other side of the aisle. He had been key element in an ongoing public de- get. The child has dyslexia. Then we tireless in his effort to make the same bate about controlling youth smoking have a special education tutor. The case, many times much more adroitly in the United States. My legislation child can’t get to the after-school pro- than I. Senator LIEBERMAN of Connecti- could stand on its own, or it can easily grams. We can arrange for that to hap- cut, Senator BREAUX of Louisiana, Sen- be incorporated into comprehensive pen through these accounts. Eighty- ator GRAHAM of Florida who designed legislation, which is beginning to be five percent of inner-city children in many of these provisions, Senator considered here in the Senate. With or America today do not have a home MOYNIHAN who designed some of the without congressional action on the computer. As my good colleague Sen- provisions of this proposal. As a matter Attorney General’s proposal and sug- ator TORRICELLI often says, how could of fact, almost 80 percent of the costs gested settlement which took place anyone even envision coming to the associated with the bill are on provi- last summer, it is time for Congress to new century without a home com- sions associated with the other side of act now to stop the tobacco industry’s puter? Forty percent of the students in the aisle. I thank those Members very practice of luring children into un- general don’t have home computers, much for their assistance. I hope they timely disease and death. but it is 85 percent in inner-city will continue to be attentive to the dy- I am pleased to have join me as co- schools. namics of what is happening here. sponsors Senator BOXER, Senator It has been interesting to me to The suggestion being made by the CHAFEE, and Senator CONRAD. I also watch leaders in inner-city commu- other side of the aisle that there has want to recognize the leadership over nities say, ‘‘We want these savings ac- not been a fair balance on debate does many years of my colleagues, Senator counts.’’ The sacrifices they are having not hold water. We are trying to keep TOM HARKIN, along with former Sen- to make and the problems they are the debate focused on education and ator Bill Bradley, who have in the past having to face, all of these things help not extraneous matters. I think that is called for the total elimination of tax them, in particular. I might add, be- appropriate. We are not trying to turn deductions for tobacco advertisers. cause every now and then I hear from this into a Christmas tree. We are try- While I concur with Senator HARKIN the other side, ‘‘This just goes to the ing to talk about education, an edu- that the deduction is a questionable wealthy,’’ 75 percent of all these re- cation proposal. I hope we will be suc- use of our tax dollars, I would also like sources go to families earning $75,000 or cessful in cutting off this fourth debate to emphasize that my legislation does less—or less. I might also add that the later this afternoon. not go that far. criteria for who can use the account I yield the floor, and I suggest the ab- My legislation is designed to elimi- are identical to the little college sav- sence of a quorum. nate this deduction if it is used delib- ings account that the President signed The PRESIDING OFFICER. The erately, explicitly, and consciously to last year. clerk will call the roll. attract young people, children, to Again, Mr. President, the hour draws The assistant legislative clerk pro- smoking. Limiting the access of chil- near. It is duplicitous and cynical, ceeded to call the roll. dren to smoking is a critical part of S2240 CONGRESSIONAL RECORD — SENATE March 19, 1998 any comprehensive tobacco settlement. pliance. It simply recognizes the bot- that depicts ‘‘students who reported My approach is a constitutionally tom line of these companies and says: smoking,’’ prepared by the University sound way to do this. We have had dis- If you want to persist in advertising to of Michigan. They found that daily cussions about the first amendment minors, then you will forfeit the abil- smoking among seniors in high school and the fact that the industry and oth- ity to deduct these expenses from your increased from 17.2 percent in 1992 to ers claim that only voluntary controls tax bill. 22.2 percent in 1996. It continued to would be permissible under the first Now, Mr. President, the importance climb to 24.6 percent in 1997, represent- amendment. But it is quite clear under of this issue is enormous. The facts ing a 43 percent increase in daily smok- the first amendment that Congress has speak for themselves. Today, some 50 ing among our Nation’s high school the authority and ability to limit tax million Americans are addicted to to- seniors over the past 5 years. At a time deductions. So my legislation not only bacco. One out of every three of these when we are all appalled at the health gets at one of the major issues involved individuals will die prematurely be- consequences of smoking, we are seeing in the debate over tobacco, it does so in cause of their tobacco addiction. an increase in smoking among high a way which is completely consistent Three-fourths of present smokers today school seniors. with the Constitution. want to quit, but they can’t because it It is far too easy for children to buy Now, the advertising restrictions I is an addiction. Less than a quarter are these products. It is against the law in am talking about are generally those able successfully to quit. every State in this country to sell to- that were agreed to by the industry in Tobacco is costly in terms of lives bacco products to minors. Yet, it has their discussions with the Attorneys lost and in terms of the amount of re- been estimated that children buy $1.26 General. These restrictions have been sources consumed every year in this so- billion worth of cigarettes and other incorporated in legislation which Sen- ciety, which literally goes up in smoke. tobacco products each year. ator CONRAD introduced, and I joined as It is estimated that in the United More and more, we are learning that a cosponsor, along with 29 other Sen- States alone over $100 billion a year is these children are beginning to smoke ators. S. 1638, provides for and codifies expended in health care costs and lost because of industry advertising and those restrictions that will go a long, productivity. promotional efforts. A recent study by long way in preventing youth access to Each pack of cigarettes sold gen- John Pierce and some of his colleagues smoking. erates about $3.90 in smoking-related in a Journal of the American Medical Now, under my legislation, if the costs to society. Tobacco accounts to Association article found clear evi- manufacturers do not comply with more than $10 billion in costs a year to dence that tobacco industry advertis- these restrictions, if they choose to the Medicare system and $5 billion ing and promotional activities can de- conduct the kind of reckless advertis- each year in terms of costs to the Med- cisively influence children who have ing campaigns they have in the past, icaid system. In my home State of never smoked before, to begin smok- then they would forfeit the deductibil- Rhode Island, the smallest State in the ing. ity of these expenses. Now, these re- Union, health expenses related to Among the findings, they found that strictions are appropriately tailored to smoking were estimated at about $186 tobacco industry promotional activi- prevent the advertising and marketing million in 1996. These are staggering ties in the mid-1990s will influence al- of tobacco directed at young people in totals. The cost of smoking and lives most 20 percent of those who turn 17 our society. These restrictions are very lost and resources consumed is a seri- years of age each year to try smoking. similar to those proposed by the Food ous, serious issue in this country. This At least 34 percent of youth experimen- and Drug Administration. Indeed, they problem clearly starts with children. tation with cigarettes is attributed to are very close to those agreed to by the Ninety percent of adult smokers the advertising and promotion efforts industry in the June 20 proposed settle- began to smoke before they were 18 of the tobacco industry. ment. years old. The average youth smoker They surveyed nonsmokers who were Key components of these restrictions begins at the age of 13 and becomes a in high school, and they found that are, first, a prohibition on point-of-sale daily smoker by the age 141⁄2. You have among nonsmokers, 56 percent had a advertising, except in adult-only stores young people as early as 13 beginning favorite cigarette advertisement. They and tobacco outlets; second, a ban on to smoke and within a year and a half have been programmed— outdoor advertising; third, a prohibi- many of them are hooked for the rest preprogrammed, if you will—to begin tion on brand-name sponsorship of of their lives. to smoke. Eighty-three percent of sporting or entertainment events; Each year, 1 million American chil- those nominated either Camel or Marl- fourth, a prohibition on the use of dren become smokers, and one-third of boro as their favorite ad. In fact, Camel human images, cartoon characters and them will die from lung cancer, emphy- was the favorite among children ages cartoon-type characters in their adver- sema, and similar tobacco-related ill- 12 and 13. Again, it is no wonder, be- tising; fifth, no payments for ‘‘glamor- nesses. Unless current trends are re- cause, as we all know, companies rely izing’’ tobacco use in performances or versed, 5 million kids who are 18 and on cartoon characters like Joe Camel, in media that appeals to minors; sixth, younger today will die prematurely be- giveaways of hats, T-shirts, and key requiring black and white text adver- cause of smoking. You know, there has chains, and promote recreational ac- tising and labeling so as not to height- been a lot of attention has been paid to tivities and sporting activities, target- en the appeal of cigarette products on smoking, and we are finally seeing ing much of their efforts toward young the shelf; seventh, a prohibition on to- some positive results. There are many people. bacco product identification on entries signs that adults are beginning to real- Industry advertising is consistent and teams in sporting events; finally, a ize the dangers of smoking. with the history of the tobacco indus- prohibition on Internet advertising. In my home State of Rhode Island, try, in terms of trying to deceptively These are very sensible, very thought- the adult rate of smoking is stabiliz- promote their products, to make of ful restrictions and, I must emphasize, ing. But, shockingly, smoking among their products appear to be something should be essentially agreed to by the high school students has increased by they never were and never will be. industry as their way of meeting the 25 percent. This is not an accident—the They are spending huge amounts of challenge of limiting access to ciga- tobacco industry has targeted its ad- money to do so, and they have been rettes by young people in this society. vertising to lure children to smoke. It doing it consistently. This is an indus- On numerous occasions, the industry is a dilemma that companies face, try whose record is one of irresponsibil- has said: Well, unless we get full immu- when every year your customers die— ity toward children in our society. nity, we will not voluntarily give up and many die because of your prod- They have said in the settlement with our right to advertise to children. Well, ucts—you have to find replacements. the Attorneys General that they want today I am offering an alternative that For generations, the industry has tar- to change their culture. They recognize I think would persuade them that they geted efficiently the children of this the bad old days and they want to do should stop this advertising to chil- country. something different. I think we have to dren. This enforcement mechanism Mr. President, this is a real nation- seriously question whether or not this does not rely on their voluntary com- wide public health crisis. I have a chart will take place, whether or not they March 19, 1998 CONGRESSIONAL RECORD — SENATE S2241 will do this, unless we impose signifi- Recently released documents from Camel advertising will be directed toward cant restrictions on their ability to in- the tobacco industry trial shed much using peer acceptance/influence to provide fluence the young people of this coun- more light on what has been taking the motivation for target smokers to select try. place for years. And the conclusion is Camel. Specifically, advertising will be de- inescapable. These companies have veloped with the objective of convincing tar- Now, the story of the tobacco indus- get smokers that by selecting Camel as their try is, in many cases, a story of adver- been targeting the young people of usual brand they will project an image that tising in the United States. If you ap- America. News reports recently dis- will enhance their acceptance among their proach someone my age and ask them, closed that an RJR researcher named peers. ‘‘What does LSMFT mean?—and I see Claude Teague wrote in a 1973 memo, What could be more cynical? What Senator TORRICELLI here, who probably ‘‘if our company is to survive and pros- could be more hypocritical than stand- would say of course he knows—younger per, over the long-term we must get ing before the House Commerce Com- people might think that it is gibberish. our share of the youth market.’’ mittee, and saying, ‘‘It is not our ad- Documents obtained through the We all know that it means ‘‘Lucky vertising, it is peer pressure,’’ and then Mangini litigation further document Strike Means Fine Tobacco.’’ Now, to conducting campaigns that are delib- these efforts. A presentation from a pull that out of your subconscious, if erately designed to create that peer you are 40 years or older, just like C.A. Tucker, vice president of market- ing, to the board of directors of RJR pressure? that, is because it was drummed into As I said before, if you look at these Industries in 1974 concluded: ‘‘This us persistently through tobacco adver- documents, they persistently refer to young adult market’’—let me stop for a tising. It was a little jingle or acronym the ‘‘young adult smoker.’’ So the in- that kids would recognize. Then, of moment. ‘‘This young adult market’’— if you ask me who is the young adult— dustry will say, ‘‘Well, of course we are course, we all remember, going back I would say a young adult is 24, 25, 26. trying to get customers, but they are years, the slogan ‘‘sold American.’’ All What does the industry think a young young adults.’’ But their vision of the of these are part of our culture. All of adult is? young adult is much different than my them program young people in particu- This young adult market, the 14–24 age vision, and I think any reasonable per- lar to be receptive and welcoming to group . . . represent(s) tomorrow’s cigarette son, because it became a code word for the suggestion that they should smoke. business. teen smokers. (Mr. SMITH of Oregon assumed the That same presentation said: For example, a 1987 document dis- chair.) For Salem, significant improvements have cussing ‘‘Project LF’’ Camel Wides, If you go back to the 1950s, the indus- been made in the advertising, designed for states, ‘‘Project LF is a wider circum- try at that time was trying to suggest more youth adult appeal under its greenery/ ference non-menthol cigarette targeted that tobacco was a healthy product. refreshment theme. These include: More at younger adult male smokers, pri- They advertised, for example, ‘‘More true-to-life young adult situations. More marily 13–24 year old male Marlboro doctors smoke Camels than any other dominant visuals. A greater spirit of fun . .. smokers.’’ cigarette.’’ Of course, they have some- for Camel filter, we . . . will have pinpointed Another document suggested, as a one that looks like a doctor with a cig- efforts against young adults through its way of operating within advertising re- sponsorship of sports car racing and arette. And the suggestion is pretty motorcycling. strictions, ‘‘transfer(ing) Old Joe (Cam- clear: These are good for you. If doc- That is a 1974 memo. Contemporary el’s) irreverent, fun loving personality tors smoke them, they must be great advertisements for another brand, to other creative properties which do for you. We all know that is absolute Kool, has the same strategy, same ap- not rely on models or cartoon depic- nonsense. proach; exciting young themes; auto tions.’’ We know, and the industry knew Again, the beat goes on. The excuses racing; green, cool, clear colors; excite- then, that smoking could cause serious ment; vitality; robust—all of the change. The rationalizations change. health problems and not would benefit things that ultimately are the exact The characters change. Old Joe Camel your health. opposite of long-term cigarette smok- takes a seat on the bench. But another In 1953, another tobacco company had ing; again, very attractive; delib- fun-filled, irreverent theme designed a slogan: ‘‘This is it. L&M filters are erately targeted to attract a wide audi- similarly to attract young people takes just what the doctor ordered.’’ This ence, but certainly to attract young its place. line of suggestion led consumers to the Given this record, I am deeply skep- people to smoke. misleading conclusion that smoking The Mangini documents also indicate tical that this industry will truly re- was good for you. that RJR had been secretly conducting form. Unless we have strong provisions Again, we today know as they knew extensive surveys on the smoking hab- which make it in their economic best then that this is precisely what a doc- its of young people for years and years. interests to change, they will not tor would tell you not to do. But their A 1990 document on ‘‘Camel Brand change. That is, once again, why I deception and their advertisements Promotion Opportunities’’ states that, think this legislation is very, very im- live on. I do not know if they have real- ‘‘(t)arget smokers are approaching portant. ly changed their culture. Today, we adulthood . . . their key interests in- This industry spends a huge amount have Winston ads which are attempting clude girls, cars, music, sports, and of money each year to try to hook kids to sound like tobacco is a health food, dancing’’—again, heightening the ap- on tobacco. We know from the docu- with promotional claims saying ‘‘no peal to the youth market. You can see ments and from the research, that this additives.’’ Of course, tobacco contains it reflected in advertisements. What is one of the major motivating factors. formaldehyde and chemicals that could be more exciting and dramatic We know that advertising plays a piv- would kill you, and will kill you, if you than a race car driver? otal role in the decision of young peo- smoke cigarettes long enough. In 1982, the chairman and chief exec- ple to smoke. We know they try to use We also have the Camel advertise- utive officer of R.J. Reynolds Tobacco peer pressure. We know that for years ments. They have abandoned Joe Company, Edward Horrigan, testified they have tried to attract generation Camel, the cartoon character, but now before the House Commerce Committee after generation of young people to have ‘‘Live Out Loud’’—a very attrac- that, ‘‘(p)eer pressure and not our ad- smoking. tive ad, designed to appeal not to any vertising provides the impetus for We know the advertising pays off. rational decision about smoking. It is smoking among young people.’’ Eighty-six percent of underage smok- designed to be suggestive, particularly And this is a consistent argument ers prefer one of the most heavily ad- to young people, that this is a sexy that the industry makes: It is not ad- vertised brands—Marlboro, Newport, or thing to do, that it is an adult thing to vertising, it is just peer pressure Camel. The barrage of advertising has do, it is something that has style and among young people wanting to be like a devastating and deadly effect on our panache, the things young people want their buddy. That was 1982. children. to have in their lives, to be grown up. A 1986 memo on the new Joe Camel One of the advertising campaigns So we have an industry now that is advertising campaign—Joe Camel, a that has been most subject to scrutiny still catering to the young people of product of R.J. Reynolds Tobacco Com- in the last few years has been the Joe our country. pany—said: Camel campaign by R.J. Reynolds. S2242 CONGRESSIONAL RECORD — SENATE March 19, 1998 When they began this campaign Cam- countercampaign, begin to think twice. The PRESIDING OFFICER. (Mr. el’s market share among underaged But, nevertheless, the industry is off SMITH of Oregon). Without objection, it smokers was 3 percent. Within 3 years the air. But what they have done is is so ordered. of Joe Camel, the cartoon character, shift their approach. f the giveaways, the promotional items, You can see from this chart, which RELIGIOUS PRISONERS underage market share jumped to 13 depicts various categories of advertis- CONGRESSIONAL TASK FORCE percent—13 percent who would likely ing, that biggest jump—from 1985 to become long-term smokers. 1995—was in the area of specialty Mr. BROWNBACK. Mr. President, I Although Congress banned television items. These include shirts, caps, sun- take this opportunity to introduce to advertising in 1970, the companies rou- glasses, key chains, calendars. In 1985, the Senate and to the United States tinely get around it through the spon- the industry spent $211 million. By the formation of the Religious Pris- sorship of televised sporting events. 1995, they were spending $665 million. oners Congressional Task Force, which Marlboro did an analysis of an auto- Again, these are the types of pro- will advocate for religious prisoners mobile race they sponsored. Again, it is motional items that are most appeal- suffering persecution from foreign gov- against the law to advertise on TV. It ing to young people. The industry has ernments. was found that the Marlboro logo was increased their expenditures on public This bicameral, bipartisan task force seen 5,093 times during this televised entertainment. Public entertainment was founded by Representative JOE broadcast race, accounting for a total includes the sporting events and other PITTS, from Pennsylvania, who has of 46 minutes of exposure during a 93- public events, which mean exposure to been the leading force on this, and my- minute program. That is probably bet- a wide audience, but is significantly self. We are also joined by Senator JOE ter than if they were buying 30-second comprised of children. LIEBERMAN, from Connecticut, and Representative TONY HALL, from Ohio, spots to sponsor the show directly. Spending has declined in newspaper Data from the Federal Trade Com- and magazine advertising. Once again, on this joint task force. I would also mission shows how much the industry this is a changing strategy, but a very note at the very outset that many spends, which has increased dramati- consistent goal; to fill the ranks of Members are active in this work and cally over the last twenty years. dying smokers each year with a new have been for a number of years, such In 1975, the industry spent $491 mil- generation of Americans. Members as FRANK WOLF, from Vir- lion. In 1995 alone, tobacco manufac- Now, let us put this in perspective. ginia, who for years has advocated for turers spent $4.9 billion—$491 million in The industry is spending $4.9 billion on those who have no voice, who are pris- 1975; by 1995, $4.9 billion. On Tuesday, advertising. That is double the Federal oners of conscience in dirty cells and the Federal Trade Commission released Government appropriations for the Na- jails around the world; people like Sen- their most recent numbers from 1996 tional Cancer Institute and four times ator LUGAR in this body, who has done showing that advertising expenditures the appropriation for the National so quietly and effectively with many leaders of Government as have other increased 4 percent over 1995. The in- Heart, Lung and Blood Institute. In leaders as well. And there are many on- dustry spent in 1996 over $5 billion. 1995, the tobacco industry spent, as I We are helping, however, because the said, $4.9 billion on advertising, 40 going efforts along with this task force industry is able to deduct these ex- times the amount we are spending on we are announcing here today. As leaders in a nation which ardently penses. Generally, they can deduct 35 lung cancer research. There are issues before us with re- values religious freedom—indeed, our percent of these expenses through their spect to the Constitution, the first Nation was founded upon the principle business operations. In 1995, this sub- amendment. Indeed, I think my legisla- of religious freedom—we take this op- sidy—our contribution to hooking tion is within our province. Clearly, it portunity to intervene at the highest kids—amounted to $1.6 billion in lost does not run afoul of the first amend- levels for those whose greatest crime is revenue to the Federal Treasury. ment, which none of us in this Cham- to express a belief in the divine, in God. This is not an insignificant amount ber would like to do. I believe the re- It is my personal conviction that what of money. In fact, year by year, the strictions in Senator CONRAD’s bill one does with one’s own soul is the amount of tax expenditures on adver- would stand constitutional muster. It most fundamental of human rights. I tising that the industry has won is clear these provisions, removing the believe this is a fundamental liberty through this provision of the Internal deduction, stand strongly in support of with which people throughout the Revenue Code has increased. In effect, the first amendment. world are endowed, the inherent right we are subsidizing them to conduct Joe Mr. President, we have to act, and we to do this, to freely express their faith. Camel campaigns. We are subsidizing have to act promptly. There are lit- Yet national governments routinely them to build peer acceptance and peer erally thousands of children each day breach this right and wrongfully si- pressure for young people to smoke. In who are becoming addicted to tobacco. lence peaceful minority faith commu- 1995, the cost of the cigarette advertis- They will die prematurely. We can save nities and jail their leaders. ing deduction covered the total amount many of them if we act. The industry The statistics are striking. Fully the industry spent on coupons, has demonstrated through many, many one-half of the world’s religious believ- multipack promotions, and retail years that they are dedicated to the ers are restrained by oppressive gov- value-added items, like key chains and bottom line and are indifferent to the ernments from freely expressing their giveaways, in addition to point of sale. health of the American children. It is religious convictions. One-third to one- In fact, many of these items are the our responsibility to protect the chil- half of the world’s believers are forced things that kids like the most—the dren of this country. We should have to meet clandestinely in underground jackets, the T-shirts, and the hats. The no illusion. They will only stop target- cell groups or home churches, such as things that are trendy among young ing children when it costs them money. occurs frequently in China and Iran people are effectively paid for by the We should ensure, at a minimum, that and many other places around the tax deduction. we do not subsidize their appeal to world. Over the last few decades, the indus- children, we do not support their ef- Religious persecution is waged inter- try has changed some of their tactics, forts to target children, and that we nationally from the highest levels of but their goal remains the same. With will disallow their deduction if they do government, particularly Communist the demise of television advertise- not change their practices and begin to and ultranationalist countries. One ments—I must point out at this time advertise responsibly to the adults of successful strategy is to intimidate and that there are some commentators who this country and not the children of control believing communities by in- suggest that the reason the industry this country. carcerating respected religious leaders, was so cooperative in ending television Mr. President, I yield back the re- bringing the full weight of a national advertising at that time, the late 1960s, mainder of my time. government against key individuals. was because there were good Mr. BROWNBACK. Mr. President, I These prisoners suffer abuses including antismoking commercials on TV that ask unanimous consent to use up to 15 beatings, torture, extended incarcer- began to have an effect—that people, minutes of the time Senator HAGEL ation and even death unless interven- when confronted with a good was allotted this morning. tion is made. Such violations strike at March 19, 1998 CONGRESSIONAL RECORD — SENATE S2243 the heart of the religious communities tenced to death for the simple reason stepped forward and spoke out around while blatantly breaching inter- of their religious associations. They the world to the world’s governments national treaties and fundamental are presently incarcerated and await- where half of the people live who can- human rights standards. We have the ing execution. The death sentence is no not practice their faith freely. This is legal mandate for this action. idle threat. Over 200 Bahais have been the time for us to do that. I hate to Through this task force, we will ap- executed, including women and teenage think that we will not step up or we peal to heads of state, both to obtain girls. And this just since 1979. will not be up to the cause of the mo- release of key religious prisoners and In Pakistan, four Christians have ment, people such as this gentleman, to help change antagonistic policies. been falsely charged with blasphemy who stands and faces so much more. Individual prisoners will be assigned to against the Prophet Muhammed. If Mr. President, in conclusion, we hope individual task force members through convicted, they will be executed. Blas- that the Religious Prisoners Congres- this advocacy adoption program. phemy charges are potent weapons of sional Task Force, along with many When congressional Members peti- intimidation and control of minority other efforts, will be a voice for reli- tion Government leaders, the lives of Christian communities in Pakistan. gious freedom internationally. Our religious prisoners change. Experienced Sometimes violence erupts against en- goal is the release of prisoners who human rights groups confirm this as tire towns. For example, last year in have taken a stand for religious lib- well as some of our task force members Shantinagar, a Christian town—we erty, those who have paid the high such as TONY HALL and JOE PITTS, who have a picture of this that I would like price of loss of freedom and threat to confirm that such intervention im- to show the body—20,000 were rendered life and even death. They deserve our proves prison conditions, stops torture homeless after a mob looted and rav- advocacy for this most personal of and, most importantly, results in pris- aged for 2 days as police stood by and human rights, this most important of oner releases. watched. human rights, to freely express a belief Ultimately, the joint effort of several This is a picture here that we have of in God. Members can influence hostile national a family in that community that was With that, Mr. President, I yield the policies for the good. Moreover, task dislocated when the mob violence came floor. force members will engage in joint pro- and the police stood idly by. I note the absence of a quorum. tests with members from the British In Tibet, the 11th Panchen Lama of The PRESIDING OFFICER. The Parliament who have implemented a Tibet, a 6-year old boy, has ‘‘dis- clerk will call the roll. The legislative clerk proceeded to similar prisoner adoption program, appeared’’ and most likely is being held providing further weight to this advo- call the roll. by the Chinese Government along with Mr. GORTON. Mr. President, I ask cacy. his family, in an attempt to control As I speak to you today, thousands unanimous consent that the order for the Tibetan Buddhists. This is a deep are sitting in cramped and dirty cells, the quorum call be rescinded. assault on the Buddhist faith which for no other reason than that they The PRESIDING OFFICER. Without honors this figure as second only to the peacefully expressed their religious be- objection, it is so ordered. Dalai Lama, who is now also outlawed. liefs. Most are nameless and lack advo- f Tibetan Buddhists are suffering a sys- cates, yet they are the Sakharovs and tematic policy of eradication with THE CORPS OF ENGINEERS the Solzhenitsyns of our day, and they monasteries being razed and monks SWEEPSTAKES II deserve our help. The national cases that we will advo- and nuns incarcerated. One prison Mr. GORTON. Mr. President, these cate involve advocacy for embattled re- alone boasts over 100 monks and nuns remarks are the second in a series that ligious leaders in the Sudan, Pakistan, who are presently jailed just for their I call ‘‘The Corps of Engineers Sweep- China, Iran, and Tibet and include per- faith. This does not include the un- stakes.’’ Two or 3 weeks ago I was on secuted Christians, Tibetan Buddhists known numbers incarcerated in the the floor to speak about a series of and Bahais. The following case profiles other six prisons. foot-dragging and irrational decisions of incarcerated believers worldwide il- I want to show some pictures to the on the part of the Corps of Engineers in lustrate the extremities faced by these body of people who have been incarcer- an area that affects not only your communities. ated, penalized, and attacked by gov- State and mine, including its proposal In China, one of the people we will ernments for simply practicing their to bury an archeological site on which initially be advocating for is Bishop faith. We remember those people pic- a 9,000-year-old human skeleton had Su. He is a 65-year-old Catholic bishop tured in various places throughout the been found. Because of the wishy- who has already spent 20 years—20 world that you can see, pictures of in- washy answers on that subject from years—in jails and work camps. His dividuals who are being persecuted for the corps, there is now included in the crime is that he believed in papal au- their faith. supplemental appropriations bill about thority, which is prohibited by the This is another picture of people who to be discussed on this floor a prohibi- Government, and refuses to join the are practicing their faith clandestinely tion against the corps destroying that state-authorized Catholic Church, at a place in the world where they can- archeological site. which rejects the Vatican. Previously not practice their faith in the open. But the corps is at it again, another he was severely tortured but continues The gentleman’s picture over here to installment in the comedy of errors. to refuse to recant his faith. the far right is also a true case of an The bureaucrats in the Army Corps of Also in China, Pastor Peter Xu, the individual blindfolded and being at- Engineers office in Walla Walla, WA, Protestant leader of a 3- to 4-million tacked for his own faith. Even though have taken it upon themselves to pro- member Christian movement, has been he is blindfolded and you cannot see his mote and publish a survey of public sentenced to 3 years in a forced labor eyes, you can sense in his face that opinion on the removal of four dams on camp for his peaceful but unofficial re- here is a man of faith who knows what the lower Snake River. The corps right ligious activities. His case highlights he is facing, knowing that death is po- now, today, is in the process of distrib- the plight of unregistered Christian tential, and still standing for his faith, uting this survey to some 12,000 people. groups which are forced to meet clan- for that simple right to do with his Sending out a survey to 12,000 people to destinely to avoid arrest and harass- own soul what he sees fit. Isn’t it right determine what they think about re- ment. Such house churches remain un- for us to advocate for those who cannot moving dams is one thing. But if you registered so that they can freely prac- advocate for themselves? Isn’t it up to are the winner in this sweepstakes and tice their faith without Government this body and many others to say that get one of the surveys in the mail, out control and censorship. These under- this is a fundamental human right, of the envelope drops a $2 bill. The ground movements constitute a major- that this man should have an advocate, corps is using $24,000 in taxpayers’ ity of practicing Christians in China, that we should be standing with him as money just to put $2 bills in the enve- and their leaders constantly face arrest he stands there for the simple reason of lope that contains the survey. and incarceration. his own faith, whatever that faith But that is not all. You get $2 for In Iran, the task force has targeted might be? This is a foundational being the passive recipient of the sur- four Bahais leaders who have been sen- human right. It is time we stood up, vey. If you fill it out and send it back S2244 CONGRESSIONAL RECORD — SENATE March 19, 1998 to the Corps of Engineers, they will The American Competitiveness Act, who want to work in the U.S. should be wel- send you another $10. That is much bet- which I have introduced along with comed with open arms. Top-notch workers, ter than the odds in any of the mul- Senators HATCH, MCCAIN, DEWINE, no matter what their nationality, stimulate titude of sweepstakes we receive that an economy, creating wealth and improving SPECTER, GRAMS, and BROWNBACK, ap- living standards overall. say you may be a winner if you send it proaches the shortage of high-tech Indeed, the high-tech revolution now help- in, with odds of 100 billion to 1. Every- workers problem in both the short and ing to fuel U.S. economic expansion might body gets the $2, and everybody who long term. The bill will increase the not have been so powerful without the drive sends the survey in gets the additional annual number of H–1B visas that and creativity of gifted immigrants. Every- $10. If they all answer, that is $144,000 awarded to foreign-born professionals one knows about Andrew S. Grove, the Hun- of the taxpayers’ money. by approximately 25,000 this year, and garian who co-founded chip-making giant Mr. President, both you and I are Intel Corp. But there are hundreds of others. will create 20,000 scholarships a year Two of Sun Microsystems Inc.’s founding constantly on the backs of the corps to for U.S. students to study math, engi- engage in constructive projects that quartet were foreigners. At Cypress Semi- neering, and computer science. conductor Corp., four of 10 vice-presidents really mean something for us. I am The cap of 65,000 on these visas will are immigrants—from Britain, Germany, the sure you have received the same reac- likely be reached in May, four months Philippines, and Cuba. Says Cypress CEO tion that I have, on a number of occa- before the end of the fiscal year. This T.J. Rodgers: ‘‘What would [the U.S.] look sions, that ‘‘We just don’t have enough will cause considerable disruption at like if the computer chip had been created in money to do that. You are going to U.S. companies and universities. With- Europe because of our lousy immigration policy?’’ have to appropriate more.’’ Here is out legislative action, this problem $144,000, plus the cost of the survey, de- Many immigrants arrive as students. Alan will worsen each year until companies Gatherer, branch manager of wireless com- signing it and totaling it up. That sim- will no longer be able to count on ac- munications at Dallas-based Texas Instru- ply is a waste of money. Am I to be- cess to key personnel that help fuel ments Inc., came from Scotland to study at lieve that the Corps of Engineers is growth. Stanford University. Simon Fang, who now truly broke when it is littering mail- If American companies cannot find works on complex integrated circuits at TI, boxes in my State with $2 bills and home grown talent, and if they cannot is originally from Taiwan. He also came to promises of more? Last night, when I the U.S. to attend graduate school, and bring talent to this country, a large thanks to an H1–B visa, was able to stay. was discussing this with a friend, he number are likely to move key oper- laughed and said that he had recently WHIZ KIDS ations overseas, sending those and re- The ivy path makes the current visa re- gotten a survey from Lexus about lux- lated jobs currently held by Americans ury automobiles. In dealing with auto- strictions all the more perverse. Foreign stu- with them. We do not want that to hap- dents come to the U.S. to profit from the mobiles that cost more than $35,000, pen. best graduate education in the world. Some Lexus promised that if you sent in the Mr. President, I ask unanimous con- take jobs here. But under H1–B visas, they survey they would send you $1. Luxury sent that these articles be printed in must pack their bags six years later. Other automobiles, $1 per survey; the Corps the RECORD. countries get the benefit of these U.S.- of Engineers on removing dams, $12 per trained engineers and scientists. There being no objection, the mate- When these immigrants leave, the U.S. survey. This is just not the way in rials was ordered to be printed in the which to spend taxpayer money. This is loses more than just their talents. An ex- RECORD, as follows: not going to increase confidence in the traordinary number of their children achieve HIGH-TECH TALENT: DON’T BOLT THE GOLDEN great success, too. Example: Of the 40 final- way that our Government spends our DOOR ists in this year’s prestigious Westinghouse money. (By Howard Gleckman) Science Talent Search Award, 16 are either This is such a totally outrageous use foreign-born or children of immigrants. of the taxpayers’ money that I cannot Perhaps she’s named Irina—a brilliant Critics say immigrants take jobs from na- computer engineer from Kiev. She wants to resist the temptation to make more tive-born Americans. Maybe a few do. But come to the U.S. and bring her dreams of de- articial barriers won’t protect U.S. jobs for than one set of remarks on the floor on veloping the next breaththrough in commu- the subject, so I can promise you, Mr. long. If U.S.-based companies can’t get the nications software. But if she doesn’t make skilled workers they need at home, they will President, that I will be back next it in the next few weeks, she probably will be set up shop elsewhere—be it Dublin or Kiev. week to tell you what is in the survey. turned away. ‘‘We are disarming the economy of the If you are shocked about free $2 bills That’s the sad result of bad immigration United States if we don’t allow skilled work- and free $10 bills from your friendly policy. In 1991, Congress set quotas that ers to come in,’’argues Dell computer Corp. neighborhood Corps of Engineers office, allow only 65,000 high-tech workers to enter CEO Michael S. Dell. wait until you, as a Senator from Or- the country annually. The cap was part of a That’s why it is essential for the U.S. to larger scheme to stem the flow of immi- nurture the best workforce in the world. It egon, see the totally distorted way in grants, legal and illegal. But with American which the corps seeks your views, com- shouldn’t matter whether these top-notch companies scrambling to find programmers, employees are born in New York or New pletely stacked toward one set of an- engineers, and other highly skilled workers Delhi. America, a nation of immigrants, swers to the questions rather than an in a tight labor market, business fears the should never turn its back on people who objective survey. But that is for an- 1998 quota could be filled by May. want to come here to work. They have too other time. ON THE CHEAP much to offer. For this morning, the sole remark is: The high-tech industry is working with Here is this Government agency, con- Senator Spencer Abraham (R-Mich.) to raise [From the Detroit News, Feb. 21, 1998] stantly crying poverty to us when we the annual quota of these so-called H1-B CLOSING THE SKILLS GAP have constructive activities for it to visas to 90,000. But companies are getting a Republican Sen. Spencer Abraham of engage in, dropping $2 bills in mail- chilly response from the Clinton White Michigan is drafting a bill that would help boxes across southeastern Washington, House, which argues that U.S. employers are neutralize what is perhaps the single biggest and maybe a part of Oregon, for all I trying to get foreign workers on the cheap threat to America’s economic boom: a short- when they should be investing more money age of high-tech workers. The bill, which will know, and promising $10 more for 5 in educating and training the domestic propose raising the 1990 cap on highly skilled minutes’ worth of work in filling out a workforce. ‘‘Companies shouldn’t be able to temporary workers from abroad, deserves phony survey. say, ‘We’ll use immigration law as our way the support of all those who want to see con- This is not the way we should be out,’ ’’ says White House economic policy co- tinuing gains in American prosperity and spending our taxpayers’ money. ordinator Gene B. Sperling. standard of living. f The debate over wages and education The rapid pace of economic growth com- misses the main point: The U.S. shouldn’t bined with record low unemployment have WIDESPREAD EDITORIAL SUPPORT bar entry to skilled and creative people at created a paradoxical situation: High-tech FOR INCREASING THE H–1B CAP all. At the same time, there’s no question companies, the engine of much of the eco- Mr. ABRAHAM. Mr. President, I rise that U.S. businesses must support and gen- nomic growth, cannot find enough skilled workers to sustain current growth levels. A today to draw the Senate’s attention erate efforts to raise the quality of math and science schooling to ensure a sufficient do- study conducted by the Information Tech- to several editorials from across the mestic crop of programmers and engineers in nology Association of America estimates country that endorse an increase in the the future. that there are more than 346,000 unfilled po- number of skilled professionals who are But such educational reform will take sitions for highly skilled workers in Amer- allowed in on H–1B visas. years. In the meantime, skilled immigrants ican companies. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2245 Should his situation persist, the Indiana- catapulted the local biotech firm to success. technology hubs such as Northern Virginia, based Hudson Institute, a prominent think The stories of immigration-inspired innova- and it would give companies second thoughts tank, estimates that in just a few years it tion and job creation in the Puget Sound re- about taking jobs overseas. Further, these will cause a 5 percent drop in the growth gion are endless. workers are anything but budding welfare rate of total economic activity, also known Certainly, the federal government should cases. They have to be paid the prevailing as gross domestic product. That means a support efforts to train (or retrain) a home- wage for their skills—and the wages are darn whopping $200 billion loss in national out- grown, high-tech work force. But the key good. put—nearly $1,000 for every American. lesson here is that immigration is not a zero- High-tech firms say that easing the worker ‘‘It is as if America ran out of iron ore dur- sum game. Labor produces more labor; there shortage is critical to maintaining growth ing the industrial revolution,’’ one industry is no finite number of jobs in any industry. and competitiveness. Increasing the number official notes. Next week, Congress will hold hearings to of Americans who receive high-tech training, The problem is particularly acute in re-examine the H–1B visa limits. Nativist and bringing in more foreign workers who Michigan, where high-tech needs are higher demagogues will protest loudly. But erecting can do the work, are two parts to improving and the unemployment rate is lower than barriers to a small but invaluable stream of the situation. There are enough jobs going the national average. Indeed, so severe is the skilled immigrants hurts no one but our- begging to try both approaches. crunch of skilled workers here that many selves. f high-tech employers in Oakland County re- If lawmakers ignore employers, don’t be cently convened a conference to discuss ways surprised if high-powered high-techs move SPECIAL EDUCATION FUNDING of attracting more workers to the state. jobs overseas or contract out to foreign Despite the burgeoning demand, the immi- firms. By curtailing through foolish hiring Mr. GREGG. Mr. President, I noted gration ceiling for highly skilled immigrants restrictions the flexibility and growth of today that the President, speaking be- has remained fixed at 65,000 for the past some of the nation’s most dynamic indus- fore his labor union leadership in Las eight years. Indeed, for the first time in his- tries, ‘‘America First’’ demagogues are put- Vegas, attacked the Republican budget tory, American employers last year reached ting America last. and Members of the Republican Senate this cap one month before the end of the fis- who voted for that budget, I being one, cal year. This year they are expected to hit [From the Fairfax Journal, Mar. 10, 1998] for underfunding his initiatives in edu- the limit even sooner. JOBS GO BEGGING Protectionists and nativists will no doubt cation. Those who calculate such things say that denounce Sen. Abraham’s bill as a threat to I believe that deserves a response be- more than 19,000 high-tech jobs are going American workers. Many call for increased cause it is a duplicitous statement, to begging in Northern Virginia. The situation subsidies for ‘‘job training’’ programs. But is bad enough that firms offer bounties to be kind. Let’s talk about what has ac- such programs have seldom yielded the employees who lure in others with particular tually happened here. The President promised benefits. skills. Meanwhile, a Virginia Tech study sent us a budget. It was a budget which The real threat to American workers is done for the Information Technology Asso- was supposed to follow the agreements that companies will be forced to move ciation of America suggests that more than abroad in search of talent. which we had reached last year under 340,000 highly skilled positions are unfilled the 5-year budget agreement which around the country—more than the popu- [From the Seattle Times, Feb. 23, 1998] reaches a balanced budget. But because lation of Arlington, Alexandria, Fairfax City new funds have been identified, accord- END NATIVIST HIRING CAPS and Falls Church combined. For six years, Congress has mandated that Those numbers have spawned hurry-up ef- ing to the President, as a result of the the high-tech industry compete with one forts in Northern Virginia (Northern Vir- tobacco settlement, he decided to hand tied behind its back. It’s time to loosen ginia Community College and the Herndon- change that. the cuffs. based Center for Innovative Technology are Prior to sending us a budget, the The handicap comes in the form of an ob- major players) and around the country to President for days went out on the scure immigration limit called the H–1B visa train more computer-savvy workers before trail and proposed new program after program. The product of a nativist backlash American companies start to lose their com- new program after new program—140 I against highly skilled foreign workers, the petitive edge globally or the companies feel think is the number, $140 billion worth law prevents software firms, tech companies compelled to ship more work overseas. and others from freely employing the best But in addition to workforce training ef- of new programs. Some of that was and brightest around the world. The 1990 pro- forts, high-tech companies ought to be able money on top of old programs, but the vision set a national cap on visas for foreign to bring more of those foreign workers to our majority of it was on new programs, professionals—including computer engineers, shores before they ship jobs elsewhere. and all of it was outside the original programmers, doctors and professors—of Bills introduced in Congress by Rep. Jim budget agreement, and so he has sent 65,000 a year. Demand has skyrocketed and Moran, D–8th District, and Sen. Spencer us his budget which proposes all this the high-tech industry faces a critical labor Abraham, R-Michigan, would increase com- new programming. shortage. panies’ access to foreign professionals. Abra- Supporters of the cap say imported work- ham’s bill, would increase the cap on ‘‘H1–B’’ Now, what did the members of the ers are stealing jobs for native-born profes- visas to 90,000 workers a year from 65,000. Republican Budget Committee do, and sionals. Nonsense. From its founding, this The H1–B program allows companies to spon- what did the Republican membership of country’s economic growth and intellectual sor foreign professionals who generally get this Senate do in passing the budget achievements have been fueled by talented permission to stay for six years. In 1997 the out of committee last night? We did immigrants, not curtailed by them. 65,000 cap was reached in August and this two things. One, we said we reached an The domestic textile industry, space pro- year companies are expected to reach the cap agreement last year so let’s stick with gram, physical sciences, biotech and com- in May—such is the demand. that agreement. Let’s continue to work puter industry all gained from the contribu- Moran’s bill, part of a package designed to tions of immigrants—many of who become train more high-tech workers, would allow towards balancing this budget. That tax-paying American citizens, created thou- the Secretary of Labor to grant permanent happens to be a priority. sands of new jobs for their fellow country- residency status to information technology In that context, we funded child care men, and greatly increased the nation’s professionals for three years without quotas, initiatives, new child care initiatives stock of human capital. Just consider: A as is done now with nurses and physical to the tune of $5 billion, bringing the third of all American Nobel Prize winners therapists—as long as the efforts don’t take total child care initiatives in this Con- were born overseas. away jobs or earnings from Americans. In- gress being funded to somewhere in the Twelve percent of the fastest-growing deed, the job vacancies suggest that no vicinity of $74 billion. At the same firms in the nation today were founded by skilled worker, native-born or immigrant, is immigrants. Andrew Grove, a Hungarian scrounging for work at the moment. time, we funded an expansion in NIH emigre, was the force behind Intel. Charles Moran’s measure goes in the right direc- research activities, over $15 billion Wang, a Shanghai native, founded Computer tion, although anti-immigrant sentiment over the next 5 years, a huge expan- Associates—a company employing thousands around the country is strong enough that he sion, a 40 percent increase in NIH fund- and generating millions of dollars each year. might have to resort to a cap of some sort as ing. Eckhard Pfeiffer, CEO of powerhouse a political fallback. In any event, measures We also said that if there is a tobacco Compaq, is from Germany. that open up American access to highly settlement, the proper place to put Microsoft relies on skilled immigrants for trained technology professionals deserve the that money is in the Medicare ac- about 5 percent of its work force. At Seattle- support of the entire Northern Virginia dele- based ZymoGenetics, two foreign recruits— gation in Congress. counts. Why? Because as we have one from India and one from Austria—col- Allowing more foreign professionals into learned, Medicare is the most threat- laborated on a new form of insulin that cap- the U.S. makes all the sense in the world. It ened major Government program that tured 45 percent of the world market and would help keep the economy humming in we have today. We know that Medicare S2246 CONGRESSIONAL RECORD — SENATE March 19, 1998 goes broke in the year 2005, 2007, some- pitted against the parents of the other you think this administration put into where in that range. It is essential that children in the school system and the the special-education accounts in its we fund that program so that senior local taxpayers. budget that it sent up here? Remem- citizens will have insurance. Why was that? Well, because the Fed- ber, they put $12 billion into new edu- What is one of the main drivers of eral Government was not paying its cation programs, new school construc- the cost of Medicare? Tobacco smok- fair share of the cost of that education. tion, after-school programs, and more ing. In fact, a recent study—I think it And the practical effect of that was teachers for smaller classroom size. was done at Harvard—concluded that it that when the Federal Government How much money of that $140 billion of cost $24 billion a year in Medicare costs failed to pay the 40 percent it was sup- new program and new initiative did in order to address the issue of tobacco. posed to pay and was only paying 6 per- they put into the special-needs pro- And so it is appropriate that any to- cent, the difference was having to be gram? the special-ed program? Mr. bacco settlement money should go to picked up at the local school district President, $35 million—not billion, $35 the Medicare accounts. And that is level. That meant that the money million. Essentially zero, when you what we decided to do. which the local school district may look at it in the context of the overall We also did something else, and this have wanted to spend on some other budget requirements. They essentially is on what I wanted to focus. We de- activity of education was being allo- said that, as a matter of policy, this cided that the Congress should live up cated to pay for the special-needs administration does not care what hap- to its obligations in education to the child. pens in the special-needs account. It special-needs children. Back in 1975, Now, what happened here was that does not care what happens to the spe- the Congress passed a law called the the special-needs child was being un- cial-needs child. Rather, they would IDEA, 94–142, which said that children fairly and inappropriately put in a po- like to start new programs that will with special needs should have ade- sition of conflict with other children in create new political sound bites, that quate education, and should be able to the school system. The special-needs will pay off new, different political do it in the least restrictive environ- parents at school meetings across the constituencies that happen to support ment. It was a good bill. It was an ex- country were finding themselves con- them. But as far as special-needs kids cellent law. As a result of that law, fronted by other parents who were are concerned—zippo, for them. many children who had been shuttled upset that they did not have adequate The practical effect of this is what is off out of the local school systems, who resources because resources were going really insidious, because the $12 billion had been put, unfortunately, in back to assist the special-needs child. Why? that they use to create new programs, rooms with teachers who had no expe- Because the Federal Government was new education programs, which basi- rience and no skills to work with them, not paying its share of the burden of cally pay off the teachers unions, gives many children who simply because of the special-needs child’s education. In- them some sort of new initiative to their physical disability or their emo- stead of paying the 40 percent which we talk about. Class size and building tional problems were basically treated said we would pay, we were down to 6 schools are two initiatives which the as pariahs within their school systems, percent. federal government actually has no were brought into the light and were So the Republican Senate, as the role in, which have always been a local given good educations. first act of taking control of this body, school responsibility. What more a It has been an extremely successful made the first bill which we put on the local school responsibility and local undertaking. But at the time that we agenda a statement that we were going school decision and discretion than passed that law we said to local school to try to put an end to this unfunded what buildings a school has and how districts, listen, we know this is going mandate activity, that we were going big their classes are? The administra- to be very expensive. We as a Congress to try to right the situation, so that tion took the two initiatives where know we are asking you to do some- special-needs children would not be put there is no Federal role and they fund thing that is very expensive, so we as a in this intolerable position and their it with $12 billion. But in an area where Congress will pay 40 percent of the cost parents would not be put in this intol- there is a Federal role, where the Fed- of the education of that special-needs erable position, and so we would give eral Government has said it has a 40 child. relief to the local taxpayer, and so the percent obligation, they put absolutely Congress, acting as Congress unfortu- Federal Government would live up to no money. nately does so often, and the Presi- its obligations under the IDEA bill. How are they able to do this expan- dency, acting also in concert, have not That was S. 1. That was how high a pri- sion of these education initiatives in fulfilled their obligation to pay 40 per- ority we put on it here in the Senate as the area of classroom size and in the cent. No. In fact, as of 2 years ago, the Republicans. We not only said it in the area of building buildings? The way Federal share that was being paid was Senate and said it in the S. 1 bill—we they were able to do it—and this is, as down to 6 percent of the cost of the did it. I mentioned, what is truly inappropri- education of the special-needs child. In the first year we controlled the ate about their proposal—the way they So what had happened in the school legislative process in this body under were able to do it was they essentially systems? In local school systems across the leadership of Senator LOTT, with robbed the money from special-needs this country, special-needs children my support and the support of a lot of kids. If they had taken the $12 billion and their parents were being pitted other people, we increased funding in of new initiatives—which are political against the parents and children who the special-needs accounts, in the spe- in nature, in my opinion—and put it did not have need for the resources of cial-ed accounts, by $780 million. In the into the special-needs program for the those special-needs children. second year that we controlled the ap- kids who need it, they would have What you had, I know very well, in propriating process, we increased fund- come very close to reaching the 40 per- school systems in New Hampshire was ing in the special-ed accounts by $690 cent which would be the funding levels that over 20 percent of the local school million. These were dramatic increases that the Federal Government had com- dollars were going to support the spe- in those accounts, but nowhere near mitted to relative to special needs. cial-needs child, and they still are. It the increases that are necessary to So they are essentially saying not was not unusual to cost $10,000 a year reach the 40 percent. As a result of only that they are not going to help just for transportation of a special- those initiatives, we now have funding special-education kids, but that they needs child. Sometimes it would cost for special education up to about 9.5 are going to take from special-edu- $30,000–$40,000 a year for the education percent of the cost. It is a long way cation kids for the purpose of funding of the child. And this was a situation from 40 percent but a significant in- their initiatives instead of funding the where the special-needs child was not crease over the 6 percent where we special-education obligations which are asking for something outrageous. They started. already on the books. And the effect of were asking for their rights under the That is a long explanation that gets doing this is as follows. Essentially, law. to the point of what the President has what they are saying is that we are Unfortunately, in asking for those said yesterday and why what he said is going to create new categorical pro- rights, they were finding themselves so disingenuous. How much money do grams which require States and local March 19, 1998 CONGRESSIONAL RECORD — SENATE S2247 school systems to do what we want programs which take more control over lurch and put them in the intolerable them to do here in Washington. Essen- the local school systems, limits the position of having to compete for re- tially they are saying you, the local flexibility of the local school systems, sources to which they, under the law, school district, in order to get the underfunds the special-needs children— have a right. money which you are owed by the Fed- if they were willing to live up to the I yield the floor. eral Government, you are going to obligation which they had made as a f have to spend it the way we—somebody commitment under Federal law, fund- down at the Department of Education ing 40 percent, a lot of the pressure SUPPORT FOR MICHIGAN STATE or somebody at the National Education would be taken off the local school sys- UNIVERSITY IN THE NCAA MEN’S Association labor union—want you to tems and they would have the monies BASKETBALL TOURNAMENT spend it. You are not going to be able necessary to pay for special-needs kids Mr. ABRAHAM. Mr. President, with to make that decision at the local and they would also have the flexibil- the serious issue of NATO expansion level. You are going to have to do what ity to do whatever they wanted with out of the way, I want to draw my col- we tell you that you have to do here in the additional money that would be leagues’ attention to another topic Washington. Had they, on the other freed up from the local tax base. with national implications. Tonite, hand, taken that money and put it into So we come back to this budget and Michigan State University will face the special-needs program, put it to- the fact that the President claims that the University of North Carolina in the wards the special-education student, his education initiatives were not prop- semifinals of the NCAA Men’s Basket- then they would have freed up money erly addressed and the Republican ball tournament. at the local level. Then they would budget doesn’t adequately address edu- In anticipation of this contest, I have given the local communities the cation. The Republican budget does not would like to announce a friendly flexibility to say how they wanted to take the President’s approach. We put agreement between myself and my col- spend their local dollars. But, by not $2.5 billion of additional money into league from North Carolina, Senator the IDEA program. No, we do not fund giving the local communities those FAIRCLOTH. As an alumnus of Michigan dollars for special education, by, rath- all the new initiatives that the Presi- State University, I have so much con- er, setting up these categorical pro- dent wants because we believe we fidence that the Spartans will beat the grams, they ratchet down the Federal should fund the initiatives that are on Tar Heels that I have indicated to the control of the local school systems. the books first. We believe we should Senator from North Carolina I will They are saying we are going to hit take the special-needs child out from make available to him a bushel of the you with a double whammy, local under the cloud of the Federal Govern- finest, fresh Michigan cherries in the school system. First, we are not going ment not fulfilling its obligations, free event that somehow my expectations to fund your special-ed program so you up the local taxpayer and the local are dashed. It is my understanding that have to take from your local tax base school board so it has the money to the Senator from North Carolina has to do that, which doesn’t allow you the make the decisions that are needed to promised, if I am correct, that Michi- flexibility to use your local taxes on be made at the local level rather than gan will receive a product of North the educational activities you want. If have the Federal Government not fund Carolina origin, specifically North you want to build a building, you can- the special-needs programs but create Carolina peanuts, if we should win. not do it under your own terms. If you new categorical programs which try to When the best of the Big Ten faces want to add a science program, you take control over the local school sys- the best of the Atlantic Coast Con- cannot do it. If you want to add some tem. ference, I will bet on the Big Ten every So, the President, as I mentioned sort of foreign language program, you time, Mr. President. Michigan State earlier, is at the least, to be kind, cannot do it—because the dollars to do may be the underdog on paper, but being disingenuous, inconsistent, and that are going to have to be spent to seeds and rankings mean nothing once in this instance specifically not fulfill- pay the Federal cost of special edu- the ball is tipped. I know that Coach ing the obligation of the Federal Gov- cation. But if you want to get more Tom Izzo’s squad is having their best ernment to the special-needs child. So money from the Federal Government, season in years, and their ride isn’t I am perfectly happy, as we move for- you have to do exactly what we want going to end just yet. I look forward to ward on the debate on this budget, to you to do in the area of class size and the result and reporting back to the put the Republican budget on edu- in the area of building buildings. It is, Senate at my next opportunity. cation up against the Democratic budg- to say the least, a rather insidious ap- I yield the floor. et on education—up against the Presi- proach to trying to take control over I suggest the absence of a quorum. the local school systems. And it is a dent’s proposals on education. I come to this floor as someone who The PRESIDING OFFICER. The cynical approach, because the loser in clerk will call the roll. The bill clerk this is the special-needs child, because headed up a school for special-needs children and who recognizes, on a per- proceeded to call the roll. the special-needs child is still left out Mr. GRAHAM. Mr. President, I ask there in the cold, to have to fight with sonal level, how important it is that we give these kids full and adequate edu- unanimous consent that the order for the local school district in order to get the quorum call be rescinded. the adequate funding to take care of cation. I come to this floor speaking on behalf of Republicans on the Budget The PRESIDING OFFICER. Without his or her needs which should have objection, it is so ordered. been paid for by the Federal Govern- Committee who say we will make our ment. stand, we will be happy to make our f stand on fulfilling our obligation to the I think I was just delivered a chart PRIVILEGE OF THE FLOOR which maybe makes this point a little special-needs child, and we will be more precisely. Let me read it first. happy to debate with any member of Mr. GRAHAM. Mr. President, I ask If you look at current funding for the minority party who wants to come unanimous consent that Mark Wil- IDEA State grants, it is $3.8 billion. forward with the President’s proposal liams, Maria Piza-Ramos, and Jeff The funding that would bring the Fed- and claim that new initiatives—which Pegler be accorded privilege of the eral Government to its promised 40 per- will take more control over the local floor for the pendency of the debate on cent is $16 billion. The President’s pro- school systems, which are basically Senator COVERDELL’s legislation. posed funding for 5 years for edu- sops to various political groups who The PRESIDING OFFICER. Without cational programs which are not IDEA support them, and which do absolutely objection, it is so ordered. related is $12.34 billion. So, you can see nothing to fulfill our obligation to the Mr. GRAHAM. Thank you, Mr. Presi- fairly clearly from this chart what I special-needs child—take priority, take dent. have just pointed out, which is that if priority over the law as it has already f the President and his people were will- passed that said we would pay 40 per- ing to fund the obligations of the spe- cent of the cost of those children but, PUBLIC SCHOOL CONSTRUCTION cial-needs children that are on the more important, over the fact that we Mr. GRAHAM. Mr. President, in this books instead of trying to create new have, for too long, left these kids in the period for morning business, I would S2248 CONGRESSIONAL RECORD — SENATE March 19, 1998 like to discuss with my colleagues a These bonds would be administered at cane or other emergency situation. provision which will be contained in the State level, just as are the other 12 This legislation seeks to encourage and the legislation introduced by the Sen- categories of private activity bonds. accelerate those kinds of innovative ator from Georgia, Senator COVERDELL, States containing school districts ex- public-private relationships. relative to education. This provision periencing high growth would be al- So, with this description, I hope that relates to public school construction. lowed to issue bonds each year in an my colleagues will see the benefit of Mr. President, as you and others in amount equal to $10 multiplied by the the flexibility and creativity that this this Chamber and millions of Ameri- population of the State. For example, provision will bring and the appro- cans know, we are facing a near crisis if a State with high-growth school dis- priateness of the Federal Government in terms of the construction of public tricts has a population of 5 million, it offering this degree of assistance to our school facilities. Too many commu- could issue up to $50 million of bonds public schools, just as it has in a whole nities in America have schools which to finance school construction. A high- variety of other public activities. are crumbling because of age and inat- growth school district is defined as one The Federal Government is not in- tention. Other communities have dra- with an enrollment of at least 5,000 stu- truding into areas of curriculum or matically oversized classrooms because dents and the enrollment has grown by personnel or other aspects of education they do not have the financing to build at least 20 percent during the five years which are the appropriate responsibil- enough new schools to meet their ex- previous to the year of bond issue. ity of the local school district. But we ploding student population. States without high-growth school dis- are extending a hand to States and There is no simple answer to this tricts would still receive $5 million of local governments to help them see issue. The General Accounting Office bond authority. that all American children go into a recently estimated that it would cost Potentially, this could provide to the classroom which is safe, which is ade- about $112 billion to repair our schools Nation bonding capacity for public quate, which meets modern edu- sufficiently to bring them into good school construction of about $2.5 bil- cational needs and into a school in condition. Additionally, although there lion a year, if each State fully partici- which there are sufficient classrooms is no single authoritative source of in- pates. That would be a noticeable con- so that there can be that relationship formation on the need for new school tribution toward the enormous need between the teacher and the student construction, that cost is also esti- that the Nation faces for financing the that will advance quality education. mated in the range of $110 billion to construction of new public schools and Thank you, Mr. President. $120. the rehabilitation of old ones. The PRESIDING OFFICER (Mr. It is clear to me, and to others who More important, it would provide a INHOFE). Under the previous order, the have looked at this issue, that we need new source of financing for public Senator from Nevada is recognized to to look for opportunities to provide school construction, because the na- speak for up to 10 minutes. Mr. BRYAN. I thank the Chair. flexibility to school districts in re- ture of private activity bonds involves sponding to this massive need for a partnership between a public agen- f school construction and repair. If I can cy—in this case typically a local school NUCLEAR WASTE DUMP SITE quote Mr. Roger Cuevas, who is the su- district—and a private entity. A typi- perintendent of schools for Dade Coun- Mr. BRYAN. Mr. President, I am dis- cal example of what would be antici- mayed to hear that there are continu- ty, FL, when he recently wrote: pated under this legislation would be ing efforts to process through this Con- It is important that financing options be that a school district needing to build defined in as flexible a manner as possible gress an ill-conceived piece of legisla- two new elementary schools would so- tion that would establish a temporary and especially not be limited to general obli- licit requests from the private sector gation bonds . . . Flexibility in the choice of nuclear waste dump in my State at the the type of eligible debt financing, as well as for the construction and financing of Nevada test site. I believe those efforts the capacity of the program to adapt to those schools. The school district will be defeated, and I believe that the State-by-State differences are as critical to would select which of the proposals policy indications overwhelmingly in- all school districts in the Nation as is its that best served the interest of that dicate that is an ill-conceived piece of funding level. school district. The school district legislation. The provision which will be con- would then enter into a leaseback ar- Most of the debate that has occurred tained in the legislation of Senator rangement where the private builder on this floor in this session and the COVERDELL provides for public school would construct the building, would be previous session has been by my col- construction the same opportunities responsible for paying the indebtedness league Senator REID and I in discussing which are currently available in a wide on the private activity bonds and, at this with other Members of this body, variety of other public-need areas; the end of the lease term, would turn and the issue has frequently been namely, airports, seaports, mass tran- the facilities over to the school system framed that it is Nevada versus the sit facilities, water and sewer facili- with no additional consideration. This rest of the country. ties, solid waste disposal facilities, would allow the school district to take I want to enlighten my colleagues qualified residential rental projects, advantage of private sector innovation this morning on some developments local furnishing of electric energy and in design and construction, as well as that I think are most interesting. The gas, heating and cooling facilities, the private sector involvement in fi- voices of the average citizen in Amer- qualified hazardous waste facilities, nancing. ica have not been heard in this debate. high-speed inter-city rail facilities and I might say that I had an opportunity In fact, a recent poll commissioned by environmental enhancements of hydro- in October of last year during one of the University of Maryland indicates electric generating facilities. In all of my monthly work days to work on that slightly more than 35 percent of those 12 separate areas, the U.S. Con- McNiclo Middle School in Hollywood, Americans, when questioned about this gress has provided assistance in the fi- FL, which was being built under this ill-conceived proposal, know anything nancing through what is known as pri- type of arrangement, although the fi- about it at all. So my colleagues have vate activity bonds. nancing was the conventional type of not heard from the public. This legislation adds a 13th category general obligation bond financing. In The nuclear energy industry and its for public schools. This new category this case, because the contractor was advocates and supporters have been a builds upon the experience that already doing a design-and-build project, the massive presence on Capitol Hill. Their exists from using private activity construction time and cost were less voices have been heard. Their power bonds to finance transportation, en- than they would have been under and their influence through the Halls ergy, environmental, and housing standard procedures. of Congress have been immense. I free- projects. There happened to even be a third ly acknowledge that they are a fright- What would be the essence of this benefit. This school was being built not ening and impressive adversary in proposal? This proposal would provide only to meet educational standards, terms of the resources that they bring to each State the opportunity to issue but also was being further strength- to bear. But again, about 35 percent of tax-exempt private activity bonds to ened so that it would serve as a com- the American people are even aware of finance construction of public schools. munity shelter in the event of a hurri- this proposal at all. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2249 Under the commission survey by the I might say that the arguments then, sponse to committee requests. Specifi- University of Maryland, when Ameri- as now, are that catastrophe will occur cally, on March 3, a request was made cans are told about this proposal, and in America if this is not transported to to the White House from this commit- they are asked about this concept of some temporary location away from re- tee to provide responses to two simple transporting high-level nuclear waste actor sites. In the 1980s, it was asserted questions: First, has the size of the throughout the country, 66 percent ex- that we would have a nuclear brown- legal staff within the Executive Office press opposition. And of the 66 percent out, that these utilities would simply of the President, funded by appro- who expressed opposition, 75 percent be unable to function because they did priated money, changed significantly were strongly opposed. not have onsite storage if these ship- between fiscal year 1997 and fiscal year I hope, as this debate is likely to re- ments were not made. It is now two 1998? And, second, what is the current sume during the present Congress, that decades later. No nuclear utility in specific number of lawyers detailed to my colleagues will hear the voice of America has closed as a result of the the Executive Office, and has that their constituents. They know that absence of storage capacity onsite. number changed significantly during this is bad policy, they know it is un- Many have closed because they are un- this time? safe, and they know that it is unneces- safe. Others have closed because, from In a recent report, Mr. President, it sary once the facts are freely laid out an economic point of view, to retrofit appears that the cadre of attorneys at for them. older reactors to bring them up to the the White House has ballooned from 4 to 39 in just the last year and a half or Mr. President, you will recall, during safety standards that are required is 2 years. Fully one-tenth, according to the course of the debate we made the simply uneconomical. point here that in order to transport Many of my colleagues find it dif- that newspaper article, one-tenth of high-level nuclear waste to the so- ficult to accept, but the nuclear indus- the White House budget now goes to pay those attorneys. A number of them called temporary site at the Nevada try is an energy dinosaur in America. were transferred from other agencies. test site, it must pass through 43 No new reactors have been ordered or And in this year’s budget request from States and that 50 million Americans built in America in two decades. I those agencies, they are asking for a live within a mile or less of the major think it is highly unlikely, in light of rail and highway corridors in America. full FTE for those attorneys. increased public knowledge and under- It appeared at the time that this in- The red lines depicted on this map of standing of what is involved in siting a formation was both readily available the United States indicate the highway reactor in a community, that we will and easy to provide, yet the White corridors. The blue lines indicate the ever again have a new reactor built in House has not given us any specifics. rail corridors. America. One does not have to be a student of As of about a half an hour ago, we did So when the public is presented with get some partial answers but not near- geography to understand that these the facts—namely, are you aware that highway and rail corridor systems ly clear enough. During this same the Congress is considering in this ses- time, I continued to get Members and make their way through the major sion of the Congress a proposal to metropolitan centers of our country. constituents asking me, as the chair- transport nuclear waste through 40 man of the Treasury Subcommittee Indeed, they are arteries of commerce States, 50 million Americans within a that connect the major cities of our which appropriated the White House’s mile or less; and what do you think of budget, to provide them with some an- country. So in transporting high-level that proposal?—the overwhelming re- nuclear waste, that waste is going to swers. action, two-thirds, expressed strong op- Finally, on this past Friday, March go through the major metropolitan position. 13, I wrote a letter in an attempt to get areas of our country. When citizens in My point, Mr. President, in bringing a response from the White House. In those communities are made aware of this to the floor today is that I hope that letter I requested that I receive this peril, they react without reference my colleagues will listen to their con- the information by them by 12 o’clock to partisanship but to strongly express stituents and hear from them. We have yesterday, March 18. In that letter, I their opposition. heard the arguments of the nuclear also asked the White House to provide We have communities such as St. utility industry. But the American me with a list of the total number of Louis, Denver, Los Angeles, Santa Bar- public, by and large, because they did attorneys detailed to all of the Execu- bara, Philadelphia, and other commu- not know about this proposal, we have tive Office and from which agency they nities that have passed ordinances ex- not heard their voices. I can tell you, came. Yesterday, the subcommittee re- pressing their strong opposition. What having been to St. Louis and Denver, ceived a call from the General Coun- brings me to the floor this morning is when you talk with citizens in those sel’s Office stating that we would re- that just earlier this week in Flagstaff, communities, and make them aware of ceive that information by 9 o’clock this AZ, its city council passed a resolution what is involved here, they understand morning. And as I have mentioned, we expressing its strong opposition to this the risk and they express strong oppo- did receive a partial answer. proposal. sition to this proposal. So now it is March 19, Mr. President, It is unnecessary. It is opposed by the Mr. President, I yield the floor. exactly 16 days after the initial request scientific community. It is opposed by Mr. CAMPBELL addressed the Chair. for information was made, and we still the Department of Energy. It is op- The PRESIDING OFFICER. The Sen- do not have the full answer. We are posed by sensible Americans who have ator from Colorado. now preparing to do a hearing, as many looked at the issue because it is unnec- Mr. CAMPBELL. Thank you, Mr. of my colleagues know, Mr. President. essary. Transporting 70,000 tons of President. I believe the American taxpayers have high-level nuclear waste across the f the right to ask some specific ques- country to a temporary facility makes TAXPAYER FUNDS AND THE tions. no public policy sense at all. As we The 12 attorneys that were so-called PRESIDENT’S PERSONAL LEGAL have pointed out time and time again ‘‘borrowed’’ from the other agencies to DEFENSE on the floor, this is not a new proposal. help the President with his personal The origin of this proposal can be Mr. CAMPBELL. Mr. President, I legal problems command very good sal- traced to one group and one group come to the floor today not only as a aries for which we expect them to do only, and that is the nuclear utility in- concerned citizen but also as a con- work in keeping with the mission of dustry. Two decades ago they came be- cerned lawmaker. As the chairman of their agency and for what they were fore the Congress and urged the Con- the appropriations subcommittee hired to do. gress to pass what was then referred to which oversees the White House budg- What I would like to ask the Execu- as an away-from-reactor program to re- et, I have some serious concerns about tive Office is, was the work of those at- move the nuclear waste from the reac- the taxpayer funds being used to pay torneys in their agencies important? If tor sites and place it in some other fa- for the President’s personal legal de- it was important, then who is doing cility off-location, off-reactor, as it fense. their work while they are temporarily was referred to. But Congress wisely In addition, I have to also state that borrowed or reassigned to the Execu- rejected that proposal two decades ago. I am concerned about the lack of re- tive Office? And if it was not important S2250 CONGRESSIONAL RECORD — SENATE March 19, 1998 enough to keep them at their job, why I remind you that my staff acts on behalf Poland, the Czech Republic, and Hun- did we hire them in the first place in of the Appropriations Committee and I ex- gary, and installed puppet govern- the agencies? pect that any request they make to you for ments, the debate over whether these What concerns me here is that as an information to be dealt with expeditiously. three countries should be members of appropriator I have the responsibility Because this request is now more than a week old, I expect that this information will NATO would have long ago been re- to follow up on these matters, and I be on my desk by March 18, 1998 at 12:00 p.m. solved in their favor. take that very seriously. I do not think Sincerely, The people of these countries have we are asking anything unreasonable BEN NIGHTHORSE CAMPBELL, yearned to have freedom, democracy, and certainly do not want to just pile Chairman, Subcommittee on Treasury, and peace for more than 40 years, as on the President. But this is taxpayer and General Government. evidenced by Poland particularly. The money and we have a right to make Mr. CAMPBELL. Mr. President, I blood in the streets of Budapest in 1956, sure it is being spent wisely. We need yield the floor. the demonstrations of the people in to verify that the White House is not Mr. MURKOWSKI addressed the Prague in 1968 who confronted Soviet using appropriated funds for the Presi- Chair. tanks, and the public confrontations of dent’s personal legal defense. It is al- The PRESIDING OFFICER. The Sen- Solidarity throughout Poland begin- ready illegal for any Government en- ator from Alaska. ning in the 1970s all laid the foundation tity to use appropriated funds for any- Mr. MURKOWSKI. I thank the Chair for the collapse of communism, which thing other than what Congress appro- and ask unanimous consent that I may we have seen in our lifetime. priated the money. speak for 5, 6 minutes in morning busi- Now as they begin to build institu- In addition, there are many Govern- ness. tions of democracy and free enterprise, ment regulations from the Office of The PRESIDING OFFICER. Without Government Ethics and the Justice De- as they move to further integrate their objection, it is so ordered. economies with the rest of Europe, partment which support the position Mr. MURKOWSKI. I thank the Chair. that Government attorneys are to pro- they should participate in the collec- f vide their services for Government in- tive security of the continent. I think terests only and not personal ones. NATO ENLARGEMENT this will bind these countries closer to- That seems pretty clear and pretty gether far into the future and ensure Mr. MURKOWSKI. Mr. President, I stability and peace throughout the well cut and dry to me. I do not request rise to express my strong support for the answers to the questions that I be- continent. the protocols of accession to NATO, Mr. President, there have been ex- lieve are unnecessary. And I do not specifically for Poland, Hungary, and make frivolous requests. These are pressions of concern by some people the Czech Republic. that expanding NATO is a mistake be- very important questions, plain and I think this is truly a historic deci- simple. cause it would somehow be perceived as sion in the sense that it shatters once a threat, a threat to Russia. I find that Finally, Mr. President, I announce and for all the artificial division of Eu- that our committee intends to hold a argument hard to accept. In my opin- rope that occurred at the end of the hearing on the Executive Office’s fiscal ion, NATO has never been a threat to Second World War. Now, if history is year 1999 request before the Easter re- Russia. Even during the height of the any guide, it ensures and enhances the cess and fully expect their response to Cold War, no one seriously considered prospects for peace, prosperity, and this inquiry prior to that hearing. that NATO threatened the Soviet Mr. President, I ask unanimous con- harmony throughout Europe. Union. Quite the contrary. NATO stood Mr. President, in the nearly 50 years sent to have printed in the RECORD the to defend—defend—against any poten- letter that we did send to Mr. Erskine of its existence, NATO has provided the tial military threat to its members. Bowles, the Chief of Staff to the Presi- military security umbrella that has There is a difference between defense dent, on March 13, 1998. permitted old enemies to heal the and offense. And NATO is designed for There being no objection, the letter wounds of war and to build strong de- defense. It was never designed as an al- was ordered to be printed in the mocracies and integrated free econo- liance of aggression—rather, it is an al- RECORD, as follows: mies. Expanding NATO to include the liance against aggression. emerging democracies of Eastern Eu- U.S. SENATE, I think the same holds true today, COMMITTEE ON APPROPRIATIONS, rope will, I hope, produce the same re- Mr. President. The people of Russia, Washington, DC, March 13, 1998. sults, that is, stronger and freer econo- who are slowly trying to emerge from Mr. ERSKINE B. BOWLES, mies whose people can live in the same the darkness and terror of 70 years of Chief of Staff to the President, harmony as do the people of France communism, have nothing—I repeat, White House, Washington, DC and Germany. DEAR MR. BOWLES: This letter is in ref- nothing—to fear from NATO. Our goal I would also note that the prospect of is not to isolate Russia but to engage erence to the size of the legal staff at the Ex- NATO enlargement has already begun ecutive Office of the President (EXOP). As and support her in her efforts to de- you are aware, there has been recent public as seen by the process of harmoni- velop a lasting democracy and a free concern about the use of appropriated funds zation in Central and Eastern Europe. market. for the private legal defense of the President. Hungary has settled its border and mi- The people in the evolving democ- As Chairman of the Subcommittee on nority questions with Slovakia and Ro- Treasury and General Government, which racies of Poland, the Czech Republic, mania. Poland has reached across an and Hungary have earned the right to funds the Executive Office of the President, old divide to create joint peacekeeping I have a responsibility to respond to these become full partners in Europe and full concerns. I understand that my staff has battalions with Ukraine and Lithuania. partners in NATO. I hope my col- made repeated requests to the Office of Ad- Mr. President, an expanded NATO leagues will support the dreams, hopes, ministration for information relating to this will make the world safer simply be- and aspirations of these people who issue, for which the office has not provided a cause we are expanding the area where have struggled for freedom for so long, response, but instead excuses and delays. wars will not happen. As Secretary of Specifically, my staff has requested that after so many decades in which they State Albright testified last year be- have lived without hope. They have the following questions be answered: Has the fore the Foreign Relations Committee, size of the legal staff within all of EXOP, that opportunity today. funded by appropriations, changed signifi- and I quote, ‘‘This is the product para- f cantly during FY1997 and FY1998? And, what dox at NATO’s heart: By imposing a is the current number of Justice lawyers de- price on aggression, it deters aggres- tailed to EXOP and has that number changed sion.’’ At the same time, we gain new NUCLEAR WASTE STORAGE significantly during FY1997 and FY1998? In allies, new friends who are committed Mr. MURKOWSKI. Mr. President, I addition, I want to know the total number of to our common agenda for security in listened to my friend and colleague lawyers detailed to all EXOP agencies and fighting terrorism and weapons pro- from the State of Nevada speak rel- their detailing agency. Your responses should include all of the agencies falling liferation, and to ensuring stability in ative to the movement of high-level under the EXOP and provide the specific places such as the former Yugoslavia. nuclear waste across various States. I FTE counts with a breakout of the employee There is no doubt in my mind that think it is important to reflect on two and detail classification by EXOP agency. had Soviet troops not in 1945 occupied points. I won’t extend the debate at March 19, 1998 CONGRESSIONAL RECORD — SENATE S2251 this time, because we will have an op- EXECUTIVE SESSION aggression has occurred against or be- portunity to do that, hopefully, in the The PRESIDING OFFICER. Under tween member states, except for near future. the previous order, the hour of 11:30 Argentia’s invasion of the British I point out that what we are advocat- a.m. having arrived, the Senate will Falkland Islands. Adding these three ing in the pending legislation is to au- now go into executive session to re- deserving countries to NATO can do for thorize the storage of waste in a tem- all of Europe what it has done for sume consideration of treaty document porary repository in the general area of Western Europe. It can strengthen 105–36. Yucca Mountain, where we have al- emerging democracies, create condi- ready expended more than $6 billion to f tions for continued prosperity, assist in develop a permanent waste repository. PROTOCOLS TO THE NORTH AT- preventing local rivalries, diminish the The idea of moving it there and putting LANTIC TREATY OF 1949 ON AC- need for an arms buildup and desta- it in temporary storage is simply to al- CESSION OF POLAND, HUNGARY, bilizing nationalistic policies, and fos- leviate the situation in some of our nu- AND THE CZECH REPUBLIC ter common security interests. clear power plants where they have Just as important, enlargement will reached the maximum storage capabil- The PRESIDING OFFICER. The signal the end of the cold war. It will ity allowed by their respective States clerk will report. further break down the Stalinistic and State regulations. The assistant legislative clerk read wall. We will reassure the world that My purpose in bringing this up is as follows: these once occupied nations are wel- simply to note that while we are at- Treaty document 105–36, Protocols to the comed free countries. No longer will we tempting to move this material and get North Atlantic Treaty of 1949 on Accession validate the old lines of Communism the authorization out to the Nevada of Poland, Hungary and the Czech Republic. but will begin to secure the historic test site, where we have had tests for The Senate resumed consideration of gains of democracy in Central Europe. some 50 years, high-level radioactive the treaty. Unlike, the Warsaw Pact, these coun- nuclear tests, the issue of moving is, I Mr. ALLARD. Mr. President, I rise in tries are voluntarily wishing to join think, relative to the reality associ- support of the NATO enlargement pro- NATO, without the coercion or force ated with when Yucca Mountain re- posal of including Poland, Hungary, from any NATO member. ceives certification and licensing, then and the Czech Republic. I will make a Not only will the Stalinist wall be the waste will have to be moved and few comments in that regard. gone, but the acceptance of these three simply go there. By moving it now, we Many people will say that the cold countries will positively show that the simply allow our nuclear industry to war is over and then will continue to West will not lock these countries out, continue to provide the 22 percent of argue that we can now dismantle our but will lock in Central Europe’s de- the power generation until we get the defenses and look inward. I completely mocracies. Enlargement will promote permanent repository licensed and cer- disagree with this assessment. I think multinational defense structures and tified. that Secretary Albright, in testifying prevent the renationalization of these The point is, we will move it sooner before the Armed Services Committee democracies. Enlargement will fill the or later. So the question of moving it on April 23, 1997, made the proper security vacuum created with the fall safely, while a legitimate point, eludes statement in relating this to an insur- of the Soviet Union. If this vacuum is the reality that we have to move it. ance policy, saying ‘‘If you don’t see not filled, there is concern that the And whether we move it now or later is smoke, there is no real reason to stop area will begin to divide simply a matter of recognizing that the paying for fire insurance.’’ nationalistically and Central Europe Government entered into a contract Because of President Reagan and his could look like the former Yugoslavia. with the nuclear industry some 14, 15 desire to see the Union of Soviet So- However, just the possibility of mem- bership into NATO has given these years ago. The Government has col- cialist Republics put on the ashheap of countries the incentive to peacefully lected about $14 million from rate- history, the United States no longer resolve many of their border disputes. payers over that period of time, and faces the threat of the U.S.S.R. But Since 1991, there have been 10 major ac- the Government agreed to take the this is no time to be complacent. U.S. cords settling differences and much of waste this year. So the Government is interests are still being threatened by this progress is credited to the oppor- in violation of its contractual commit- internal political and economic insta- tunity to join NATO. Even if some of ment. This is another full employment bilities; the reemergence of ethnic, re- the old disputes arise, NATO member- act for the lawyers here in Washington ligious, and historic grievances; terror- ship will help keep the peace, just as it as they represent the various power ism; and the proliferation of nuclear, has done in relation to the problems companies that are suing the Federal biological, and chemical weapons. Government for nonperformance of a between NATO members Greece and However, for nearly 50 years, NATO Turkey. I do not believe the United Na- contract to take the waste. has been the organization which has I encourage my colleagues to recog- tions, the Organization for Security defended the territory of the countries nize that while efforts are being made and Cooperation in Europe, the Euro- in the North Atlantic area against all to put the fear of God into the various pean Union, or any other international external threats and today we have an States and communities where the bodies have the ability to keep the historic opportunity to recommit to waste would move, the reality is that peace and promote the stability needed this security. I believe we must not at some point in time we will have to that NATO can bring to the area. turn our back on this historic oppor- address the issue. We have been moving We all know that there has been tunity. We must embrace these new military waste and high-level waste much concern about the Russian re- market democracies and say that the throughout the country and through- sponse to NATO enlargement. The Rus- old ways are gone and that we welcome out the world for many decades and sian leaders have been very public in them into the free world. Relative can certainly do it safely. their displeasure about enlargement. I I urge my colleagues to evaluate the peace should not stop us from being en- believe that this is do in part to their merits of reality and recognize the con- gaged for peace and freedom. I believe misperception that the Alliance poses a tribution of the nuclear power indus- expanding NATO to the Poland, Hun- threat to Russia’s security, NATO is try. gary, and Czech Republic is the best not, and never has been an offensive al- I suggest the absence of a quorum. way to ensure peace and stability. liance. NATO is a defensive alliance The PRESIDING OFFICER. The Over the last few decades, much of only. clerk will call the roll. the United States’ focus has been on We must respect Russia’s concerns. The assistant legislative clerk pro- the Middle East, the Far East, and But as my respected predecessor Sen- ceeded to call the roll. Russia. Throughout history, the United ator Hank Brown has written, Mr. ALLARD. Mr. President, I ask States has been closely linked to the ‘‘[W]orking closely with Russia in an unanimous consent that the order for stability of Europe. We have been attempt to allay their concerns makes the quorum call be rescinded. through two world wars and one cold sense. Slowing or altering NATO ex- The PRESIDING OFFICER. Without war in Europe. However, since the for- pansion . . . hands the Russian govern- objection, it is so ordered. mation of NATO, not one major war or ment a veto pen.’’ Like Senator Brown, S2252 CONGRESSIONAL RECORD — SENATE March 19, 1998 I believe that this would be a mistake. The inclusion of these three nations less, stability in Europe. How we enlarge An enlarged NATO only promotes secu- that are willing and able to defend the NATO is critically important, along with rity and stability in an area of Europe common interests will strengthen the whether we enlarge NATO, since we do not that is vital to Russian security. The want to contribute to the very instability alliance. Each of these nations pro- that NATO enlargement is aimed at deter- invited states must clearly know that vided forces to the United States-led ring. they are no longer ‘‘eastern bloc na- coalition during the Persian Gulf war. Now, in May of 1997—and what is im- tions’’ but an integral of the circle of Their troops are serving with the portant is that this came subsequent to democratic countries. NATO-led stabilization force in Bosnia. Lastly, with any expansion there is a NATO’s decision to expand—Russia’s Hungary provides a staging and train- President, Boris Yeltsin, President concern about the cost. There have ing base for U.S. forces in Bosnia. All been wide ranging estimates. The total Clinton, and leaders of other NATO three are prepared to contribute forces countries, signed a founding act on mu- amount is estimated at $27 to $35 bil- to the United States-led force pres- lion for all current members and the tual relations, cooperation, and secu- ently deployed in the gulf, if that rity between NATO and the Russian invitees over 13 years, from 1997–2009. A proves necessary. They have, thus, al- bulk of this cost is to modernize and Federation. I think it is important to ready demonstrated their commitment read the second paragraph of that reform militaries and make them oper- to burdensharing and to be not just able with NATO. However, with the founding act, which succinctly states consumers of security but also contrib- the relationship between NATO and United States already having the utors to a more secure Europe. world’s premier armed forces, the bulk Russia and the goal of the act. That Most important, I believe that a paragraph reads as follows: of the cost will be incurred by our al- military invasion of Poland, or Hun- lies and the three invitees, as they up- NATO and Russia do not consider each gary, or the Czech Republic would other as adversaries. They share the goal of grade their forces and facilities to threaten the stability of Europe and in- overcoming the vestiges of early confronta- meet those standards of the United volve the vital national security inter- tion and competition and of strengthening States and NATO. ests of the United States. All three of mutual trust and cooperation. The present With the addition of these countries, these countries have established good Act reaffirms their determination— the U.S. percentage share of the NATO relations with their neighbors. For ex- That is NATO and Russia after the budget will go down, and the resolution ample, Poland and Ukraine concluded a decision was made to expand, and now before us provides that U.S. costs will declaration of reconciliation in Decem- we have NATO, having made that deci- be kept under control and not be al- ber of 1997. Hungary ratified treaties on sion, and Russia saying that they reaf- lowed to subsidize those members that understanding, cooperation, and good firm their determination— are not putting forward their share of neighborliness with Slovakia in March to give concrete substance to our shared the funds. Adequate defense systems of 1995, and with Romania in Septem- commitment to a stable, peaceful and undi- always cost money, but alliances make ber of 1996. The Czech Republic signed vided Europe, whole and free, to the benefit of all its peoples. By making this commit- costs more evenly shared through the a formal reconciliation pact with Ger- alliance. ment at the highest political level, we mark many in January of 1997. Let me end with this: NATO enlarge- the beginning of a fundamentally new rela- Several issues need to be addressed as ment is the Western World’s way to tionship between NATO and Russia. They in- part of this momentous debate. These show that the cold war is over and that tend to develop, on the basis of common in- issues include the impact that enlarge- terest, reciprocity and transparency a we welcome these countries to free- ment will have on Russia, the commit- strong, stable and enduring partnership. dom. The new threats we face can only ment of these three nations to the Now, that was an action that was be met by forming new alliances to en- principles of the NATO treaty, the cost taken by Russia after the decision by sure that these democracies do not fall of NATO enlargement, whether the NATO was made to expand. It sets up a prey to nationalistic or terrorist re- NATO-Russia Permanent Joint Council gimes. The Czech Republic, Poland, and door to further enlargement should re- to ‘‘provide a mechanism for consulta- Hungary, know life without freedom main open after the accession of these tions, coordination, and to the maxi- and now deserve the freedom and secu- three nations, and whether the acces- mum extent possible, where appro- rity that only NATO can provide. sion of Poland, Hungary, and the Czech priate, for joint decisions and joint ac- I yield the floor. Republic should be delayed until they Mr. LEVIN addressed the Chair. are admitted to the European Union. tion with respect to security issues of The PRESIDING OFFICER. The Sen- First, the impact of enlargement on common concern.’’ ator from Michigan is recognized. Russia. I start this with the sobering The Founding Act further provides Mr. LEVIN. Mr. President, I inquire thought that Russia is the only coun- that ‘‘The consultations will not ex- whether we are operating under a time try that could destroy the United tend to internal matters of either limit. States. Additionally, although Russia NATO, NATO member states, or Rus- The PRESIDING OFFICER. There does not today pose a conventional sia.’’ Finally, it states—and this is im- are no limitations on debate. threat to NATO, it is a large and re- portant to all of us—‘‘Provisions of Mr. LEVIN. I thank the Chair. source-rich country, whose policies of this document do not provide NATO or Mr. President, I will support the ac- democratization and movement to a Russia, at any stage, with a right of cession of Poland, Hungary, and the market economy are very important to veto over the actions of the other, nor Czech Republic into NATO. I do so with the U.S. and its NATO allies. It is, do they infringe upon or restrict the the realization that this represents, in therefore, an important national secu- rights of NATO or Russia to independ- its most basic meaning, a serious com- rity interest of the United States to do ent decision making and action. They mitment by the United States to treat what we reasonably can to ensure that cannot be used as a means to disadvan- an armed attack on any of these na- NATO enlargement does not contribute tage the interests of other states.’’ tions as an attack on the United to a reversal of Russia’s course toward Now, the signing of this partnership States. democratization and a market econ- agreement between NATO and Russia NATO has been called the most suc- omy, nor contribute to a Russian view after the announcement relative to ex- cessful alliance in the history of the of the United States as a hostile na- pansion—and it doesn’t, of course, world. It successfully deterred an at- tion. mean that Russia is happy with NATO tack by the former Soviet Union and In a statement I made at the Armed enlargement; they are not—at least also, very importantly, it helped to Services Committee’s first hearing many of the leaders are not, although I keep the peace among the nations of after NATO’s decision to enlarge, a will get to a public opinion poll in a Western Europe. I am convinced that hearing in April of 1997, in which Sec- minute, which seems to imply that the the accession of Poland, Hungary, and retary of State Madeleine Albright and majority of Russians are satisfied that the Czech Republic to NATO will help Secretary of Defense William Cohen Russia should expand; nonetheless, it is ensure long-term stability and peace in testified, I said the following: clear that the leaders in Russia, in the Europe and will demonstrate our con- I believe that we must do everything we Duma, are not happy about NATO en- tinuing engagement and leadership in reasonably can to enlarge NATO in a way largement, but it does mean that Rus- transatlantic affairs. that contributes to a greater, rather than sia is willing to work with NATO for a March 19, 1998 CONGRESSIONAL RECORD — SENATE S2253 stable, peaceful, and undivided Europe. What about commitments to the that election and protecting his move- I think that the Clinton administra- principles of the NATO treaty, the ment to the castle, where he would tion, which exercised leadership to Washington treaty? Article 10 of that serve, and how they would fill the move the alliance to enlarge, deserves treaty addresses the subject of the ac- streets protecting that free election much credit for also leading the alli- cession of new members to the alli- and protecting their democracy. ance to enlarge in a way that a new re- ance. It states, in pertinent part, the After the freedom came, Poland, lationship with Russia is possible. following: Hungary, and the Czech Republic The signing of this NATO-Russia The Parties may, by unanimous agree- signed association agreements with the Founding Act is evidence of the fact ment, invite any other European state in a European Union in 1991. The European that Russia accepts, albeit grudgingly, position to further the principles of this Union leaders decided in March of 1998 the concept of NATO enlargement. The Treaty and to contribute to the security of to convene full accession negotiations leadership in Russia has accepted the the North Atlantic area to accede to this with these three nations. Poland has likelihood that Poland, Hungary, and Treaty. held seven free and fair elections since the Czech Republic, former members of The principles in Article 10 can be 1989. Hungary has had two democratic the Warsaw Pact, but independent na- summed up in the preamble to the changes of government since 1989 in tions, will join the NATO alliance. NATO treaty, as follows: fully free and fair elections. Since 1989, Based upon my meeting with Russian They (the NATO Parties) are determined first Czechoslovakia and then the parliamentarians, indeed, Russian Min- to safeguard the freedom, common heritage Czech Republic have had three free and isters, I am convinced that Russia’s po- and civilization of their peoples, founded on fair elections. All three governments litical leaders, from all parties, want to the principles of democracy, individual lib- established civilian control over their erty, and the rule of law. develop a cooperative relationship with military, and their Parliaments are in- NATO and its members, particularly The first chapter of the alliance’s creasingly active in overseeing mili- the United States. September 1995 ‘‘Study on NATO En- tary budgets and activity. Despite NATO enlargement on the largement,’’ in addressing the criteria So I am satisfied with the commit- horizon, Russian soldiers still serve for candidates for accession, stated ments of Poland, Hungary, and the side-by-side with American soldiers in that candidates must: Czech Republic to democracy, individ- Bosnia to create a secure environment Conform to basic principles embodied in ual liberty, and the rule of law. Indeed, in which the Dayton accords can be im- the Washington Treaty: democracy, individ- I believe the people throughout the plemented. I have visited with United ual liberty, and the rule of law. world can draw inspiration from the States and Russian troops in Bosnia. I Mr. President, I know that most of us extraordinary accomplishments of witnessed firsthand how well they are have met with Cabinet-level officials these three formerly Communist-ruled working together. There has not even and parliamentarians from Poland, nations. been a hint of ending Russia’s military Hungary, and the Czech Republic. As a What about the cost of NATO en- presence in Bosnia, despite NATO en- member of the Senate NATO Observer largement? It has perhaps been the largement, even though the financial Group, I have also been able to meet most written about and the least un- cost, by the way, of that presence is with those officials, as well as with derstood aspect of NATO enlargement. clearly a funding problem for the Rus- NATO officials, including Secretary It is an important subject, and it needs sian Ministry of Defense. Other evi- General Javier Solana; the Chairman to be examined carefully. dence of the fact that Russia, despite of NATO’s Military Committee, Gen- Pursuant to congressional direction, NATO enlargement, wants to work eral Klaus Naumann; and other mem- the Clinton administration sent a re- with NATO and work with the United bers of the military committee, and port to Congress in February of 1997 on States, is that Russia has recently the Chiefs of Defense of the present al- NATO enlargement that included an il- agreed to more active participation in liance members. lustrative estimate of the cost in the NATO’s Partnership for Peace pro- I also have explored the important range of $9 billion to $12 billion over 13 gram. More evidence. Just last week, issue of the commitment of Poland, years. The term ‘‘illustrative’’ was nec- Prime Minister Victor Chernomyrdin Hungary, and the Czech Republic to essary because the Department of De- publicly pledged at the end of his talks NATO’S basic principles: democracy, fense, which prepared the estimate, did with Vice President Gore that the Rus- individual liberty, and a commitment not know which nations or even how sian Government will push hard in the to the rule of law. many nations would be chosen for Russian Duma for ratification of It has been 9 years since the demo- NATO membership and it, therefore, START II, despite NATO enlargement. cratic revolutions of 1989 swept Eastern could not conduct a detailed and com- So we have actions here on the part Europe. Poland established the first prehensive analysis that would be re- of Russian leadership—staying in Bos- non-Communist-led government in the quired for a true cost estimate. That nia, working with an expanded Part- Warsaw Pact in April of 1989. I can still report estimated not only the costs nership for Peace, signing an alliance remember the feelings of admiration, that would be occasioned by NATO en- agreement, an agreement with NATO respect, and, indeed, elation that we all largement, but also the costs to to work with NATO. We have all of this experienced when we watched the Soli- present NATO members to implement evidence of a willingness on the part of darity-led movement of Lech Walesa the alliance’s new strategic concept the Russian leadership to work with guide Poland into democracy. Hungary that requires reorientation from a stat- NATO and the United States, despite moved gradually and systematically ic defense posture suitable during the this enlargement. toward democratic and market eco- cold war to a more flexible and mobile Again, interestingly, there was a Gal- nomic reforms and was generally set of capabilities to respond to dif- lup poll taken in Moscow, released last viewed as a haven of stability in East- ferent types of threats. week, that revealed that 57 percent of ern Europe. In Czechoslovakia, former So, the costs that were looked at re- Muscovites supported the Czech Repub- dissident playwright, Vaclav Havel, lated only in part to NATO enlarge- lic’s bid to join NATO, 54 percent sup- was named President in December of ment and were illustrative, based on no ported Hungary’s admission, and 53 1989 and has guided first Czecho- knowledge as to how many or which percent said Poland should be allowed slovakia and, after the split, the Czech nations would be added, but also in- to join NATO. More than a quarter of Republic, with a steady and inspiring cluded illustrative costs of an entirely those polled had no views on the sub- hand ever since. new concept, a strategic concept for ject. Many of us had the opportunity to be NATO, which didn’t relate to the ques- So, based in part on all of these fac- in Eastern Europe in 1989 and 1990 when tion of NATO enlargement at all, but tors, I am satisfied that NATO enlarge- these events took place. I remember which would occur whether or not ment will not produce the unwanted ef- my wife Barbara and I being in Prague NATO was enlarged. fect of causing Russia to reverse its when Havel, after elected, was about to This report provided a comprehensive course toward democratization and a assume the Presidency of that nation, look at some possible future costs, but market economy, nor to view the and the inspiration that was provided it also added some confusion since it United States as a hostile nation. by the people of Prague, protecting went beyond the common costs to S2254 CONGRESSIONAL RECORD — SENATE March 19, 1998 NATO members that are a direct result that would need to be upgraded in some time before any new nations will of NATO enlargement, which is the order to extend NATO’s communica- be chosen for accession to NATO. But a real issue that we must deal with in tion links to new members; in order to 3-year mandated pause could actually considering the accession of Poland, conduct air defense, which reflects the imply too much. It could imply that, Hungary, and the Czech Republic. The integration of new members into after 3 years, we will support more na- really relevant aspect of the adminis- NATO’s air defense systems; in order to tions joining NATO, and that is not tration’s cost assessment, the assess- provide reinforcement reception facili- necessarily the result of the process ment of the costs for NATO members ties, which reflect upgrades for infra- which has been adopted. for the direct costs, is the figure $9 bil- structure, particularly airfields to re- It seems to me that mandating a lion to $12 billion over 13 years. But ceive NATO forces; and in order to pause is no more logical than mandat- that figure, again, included both costs carry out training and exercises. NATO ing when the next round of NATO ac- that would be eligible for common found that those facilities were in bet- cessions should occur. Further enlarge- funding and those that would have to ter shape than the Department of De- ment of the alliance should be judged be borne by the new member states. fense had assumed. The Department of by the circumstances and develop- There was a new cost assessment Defense had not actually visited those ments that exist at the time and that was made in November of 1997. facilities. NATO’s staff did. In addition, whether a candidate nation meets the That was made by the NATO staff. The NATO used the more limited funding criteria for NATO membership. That assessment was produced under the di- eligibility for NATO common funding, should not be decided arbitrarily in ad- rection of NATO’s Military Committee NATO had more empirical data as to vance by either deciding that new and has since been approved by the actual pricing, and there were some members should not be taken in before North Atlantic Council. It estimates minor differences between NATO and a certain date or that new members the costs which will be eligible for the United States as to new member will be taken in after a certain date. common funding at $1.5 billion over 10 No nation can be admitted to NATO years. Those are the real costs as esti- requirements. So for all of those reasons, that origi- without the advice and consent of this mated carefully, knowing which coun- nal estimate of the administration was Senate. We do not need to condition tries would come into NATO which had way off and it was way high, and the our advice and consent on the admis- been approved for accession and look- revised estimate done by NATO after sion of these three nations in order to ing at just the direct cost of adding on-site visits and looking only at the establish that fact, the fact that we those countries and excluding other have control over who is admitted, and costs which are not directly related to direct costs resulting from the increase when, to NATO. So I would vote that accession. The estimate, again, for in the size of NATO, that assessment against such an amendment that would all of the members was $1.5 billion over has been approved by the GAO and by establish that arbitrary 3-year morato- 10 years. The U.S. share would be about the DOD. Next, should we have a pause? In the rium. $400 million over 10 years. The Depart- course of this debate the Senate will be Mr. President, another issue that is ment of Defense reviewed the NATO dealing with an amendment that going to come up is membership in the study and has determined that its con- would, in essence, establish a 3-year European Union and whether or not we clusions concerning enlargement re- should delay the accession of Poland, quirements is thorough, militarily pause, after the accession of Poland, Hungary, and the Czech Republic until sound, and based upon a range of rea- Hungary and the Czech Republic, be- they are admitted into the European sonable contingencies, and the Depart- fore NATO could consider the accession Union. I understand the positive moti- ment concurred with the NATO cost of any other nations to the alliance. I have already cited article X of the vating forces behind that amendment. assessment. The General Accounting NATO treaty. On July 8, 1997, NATO Office evaluated the basis for NATO’s There may even be some truth to the heads of state and government, in their cost estimate, reviewed the DOD as- statement that in the present low- Madrid Declaration on Euro-Atlantic sessment of that NATO cost estimate, threat environment, Poland, Hungary, and concluded that the approach used Security and Cooperation, in which and the Czech Republic have a greater by NATO in determining the estimated they announced their decision to invite need for economic stability than for direct enlargement cost for commonly Poland, Hungary, and the Czech Repub- the added security that membership in funded requirements is reasonable. lic to begin accession talks, reaffirmed the NATO alliance will bring. They also determined that the DOD as- that ‘‘NATO remains open to new I have discussed this issue with nu- sessment of the NATO cost study was members under article X of the North merous visitors from the three coun- reasonable. Atlantic Treaty.’’ tries with whom I have met. They have Thus, the question is why was there Since its inception in 1949, the alli- all stated their preference for joining such a discrepancy between that origi- ance has been enlarged on three sepa- NATO before joining the European nal estimate of $9 billion to $12 billion rate occasions to include Greece and Union. They want to be in the Euro- and NATO’s estimate of $1.5 billion? Turkey in 1952, the Federal Republic of pean Union, but they want to be in The answer then lies in several of those Germany in 1955, and Spain in 1982. All NATO even more, and they want it factors. of these enlargement decisions, includ- first. They cite the historical experi- First, the administration’s estimate ing the decision to invite Poland, Hun- ence of their countries under foreign included both costs that would be eligi- gary, and the Czech Republic, have domination. They stress that they seek ble for common funding and those that been the product of careful and com- a closer relationship with the United would be needed to be borne by new prehensive consideration. The alli- States, a relationship to which NATO member states. Deducting the cost ance’s 1995 ‘‘Study on NATO Enlarge- but not European Union membership is that would have to be borne by new ment’’ set out the criteria that was related. member states reduces the administra- used for these three nations and that When the experts speak of the con- tion’s original assessment, which was will be used for any consideration of fu- tribution that NATO has made or that $9 billion to $12 billion, to $5.5 billion ture enlargement of the alliance. I am the U.S. military presence in Europe or to $7 billion. satisfied with the criteria and with the the Far East has made, the first thing Second, the DOD assessment was process that has been and will be used. that is noted is the peace and security based upon four new NATO members, I see no reason to mandate a pause, that allows economic development to not the three new members which were particularly since the desire to join the then occur. Nations look to their exter- actually selected for accession to alliance has been such a productive nal security first and then to their eco- NATO. Had the administration made force for candidate nations to proceed nomic security, for without the former, an assessment of the cost for three new on the road to democracy and the rule you cannot have the latter. members, that would have reduced its of law and to reach accommodations During the Senate NATO observer estimate to between $4.9 billion and with their neighbors. group’s meeting with NATO’s military $6.2 billion. Given the deliberative process that committee, I was struck by a state- Additionally, NATO actually visited was involved in NATO’s enlargement ment by its chairman, General Klaus the facilities in new member countries decision, it is clear that it will take Naumann. He made the point that one March 19, 1998 CONGRESSIONAL RECORD — SENATE S2255 of the major benefits of NATO enlarge- defend the common interests and will continent. We don’t want to take without ment was to prevent the renationaliza- strengthen the alliance. In my view, giving. We want an active role in the defense tion of defense in candidate countries. accession of these three nations will of European peace and democracy. Too often, we have had direct experience of where indif- In other words, if Poland, Hungary, and not contribute to a reversal of Russia’s ference to the fate of others can lead, and we the Czech Republic were not admitted course toward democratization and a are determined not to succumb to that kind to NATO, they would have to devote market economy nor to a Russian view of indifference ourselves. much more of their scarce resources to of the United States as a hostile na- For all those reasons, Mr. President, national defense. That would have a tion. I will be supporting this resolution of significant negative impact on their And again, we should consider care- accession. economies. And General Naumann fully and thoroughly the impact on our I thank the Chair and yield the floor. could also have added that the relationship with Russia. It is an im- Mrs. FEINSTEIN addressed the burdensharing that membership in portant relationship and we should not Chair. NATO provides allows NATO member unwittingly damage it. The PRESIDING OFFICER. The Sen- nations not to build large military We should not in the effort to create ator from California. forces that could be perceived as stability in Europe unwittingly con- Mrs. FEINSTEIN. Mr. President, it threatening to their neighbors and tribute to instability. But I don’t think was a great treat for me to listen to prove destabilizing to the region. the accession of these three countries the very eloquent comments of the But finally on this issue of whether will have that effect. And I emphasize, Senator from Michigan. A few years we should condition accession of these after the announcement of NATO en- ago, Vice President Walter Mondale three nations to their membership in largement, Russia agreed to an ex- said to me ‘‘When you go to the Sen- the European Union, there is one other panded participation in the NATO ate, listen to CARL LEVIN; he is one of thought that I think we have to con- Partnership for Peace program, signed the most articulate and erudite Mem- sider. If we condition our action on an agreement with NATO providing for bers of that body.’’ After hearing his something that Europe does or must a special relationship between NATO discussion of the NATO enlargement, I do, it seems to me that it would justify and Russia—after the announcement of just want to say the Vice President was the perception in some quarters of Eu- an expanded NATO, nonetheless agreed correct. rope that we decide that we are deter- to a relationship with NATO. Mr. LEVIN. Let me thank my good mined to dominate our friends and our With Mr. Chernomyrdin’s, Prime friend from California. I doubt that he allies. We should not dictate member- Minister Chernomyrdin’s, decision last was correct in that one respect. In so ship in a partnership to which we do week to go to the Duma and press for many other ways he is wise, and I hope not belong. the ratification of START II in the he is also wise here. I happen to favor that membership I thank the Senator. Duma, all of these things are despite Mrs. FEINSTEIN. I thank the Sen- very strongly. And, again, in this low- the increase in the size of NATO. De- ator. threat environment, these three na- spite an enlarged NATO, these actions Mr. President, I rise as a member of tions might be wiser to seek that mem- on the part of Russia show how impor- the Foreign Relations Committee to bership before they seek membership tant it is to Russia to relate to Europe support the legislation before us. I hap- in NATO, even though I think if we and to relate to us. It is important to pen to believe that admitting Poland, were in their position, we would put us, too. But I do not think that ratify- Hungary, and the Czech Republic to NATO first, too, because security phys- ing the expansion of NATO will jeop- NATO is a natural and logical response ically of a nation, I think, instinctively ardize in any way our relationship with to the end of the cold war, and is a cru- is more important to people in that na- a democratic, market-oriented Russia, cial element of a larger strategy to tion than economic security, as impor- and their actions are more important build a Europe that is at last undi- tant as the latter is. in this respect than my words. vided, democratic, and at peace. I sup- What troubles me about this rela- Their action in working out an agree- port enlargement because, first, I be- tionship that is being attempted in Eu- ment with NATO, participating in Bos- lieve there is a sound strategic ration- ropean Union membership perhaps nia—there has been no suggestion that ale for enlargement; secondly, because more than anything is that it would re- they would no longer participate in I believe that Russian concerns that inforce a perception that even though Bosnia if NATO is enlarged. They are NATO expansion presents a threat or a we are not a member of that partner- committed to that. I think all of these challenge to the well-being of Russia ship, we are trying somehow or other actions on their part indicate their ac- are unfounded; and, thirdly, because I to dictate or to dominate that partner- ceptance of the idea that NATO will be believe that costs of enlargement will ship. I do not think that perception is enlarged. not be an undue burden on the United either accurate or we should give any Do they like it? The leadership States but, rather, will be shared credence to it by conditioning acces- doesn’t like it. I mentioned a public among all members on a fair basis. sion or our approval of accession of opinion poll a little earlier, interest- Let me speak briefly about each of these three nations into NATO based ingly enough, just last week in Mos- these issues. For almost 50 years, the upon their acceptance into the Euro- cow, showing a majority of people in North Atlantic Treaty Organization pean Union. I just do not think it is Moscow support the enlargement of has served as the centerpiece of Amer- healthy for our partnership and our re- NATO through the accession of Poland, ican foreign policy in the European lationship with our European allies for Hungary, and the Czech Republic. To theater. NATO presented a firm com- us to condition in that way. the extent that public opinion polls are mitted alliance, a major deterrent to So in conclusion, Mr. President, I be- things that we should be relying on, it any aggressive thrust by the Soviet lieve the accession of these three na- is an interesting little footnote to this Union. It has been a successful mili- tions will contribute to stability in Eu- debate. tary alliance, and it has served the na- rope and is in the national interest of But for all of those reasons, Mr. tional interests of the United States in the United States. President, I have concluded that the preventing aggression in uncertain I have carefully considered the stra- cost is affordable; for security and the times. tegic rationale for NATO enlargement stability it will provide in Europe it is When NATO was originally formed and the impact that enlargement the right thing for us to do. during the early days of the cold war, would have on the movement toward I will end my comments by reading a it was conceived as a purely defensive democratization and a market econ- quotation from the President of the alliance, a static line protecting West- omy in Russia, the commitment of the Czech Republic, Vaclav Havel, who led ern Europe from Soviet encroachment. three nations to the principles of the the Czech democratic resistance under But it has been more than 8 years since NATO treaty, and the cost of enlarge- communism. This is what he stated the Berlin wall came down. Today, the ment. I believe the three nations that about NATO enlargement. Soviet Union is gone and the sort of have contributed forces to the Persian Our wish to become a NATO Member grows military threat for which NATO was Gulf war and to the stabilization force out of a desire to shoulder some responsibil- originally conceived and designed, in Bosnia are willing to do their part to ity for the general state of affairs on our thankfully, no longer exists. S2256 CONGRESSIONAL RECORD — SENATE March 19, 1998 I believe that this new post-cold-war for Peace exercises. And we are moving burdensharing has been included in the era calls for a new NATO, a NATO that ahead with arms control. Russia is resolution of ratification. That in fact is an alignment of like-thinking states ahead of schedule under the START I is now the case. committed to democratic values and treaty. Prime Minister Chernomyrdin The language which we have included mutual defense within a given geo- has committed to Duma ratification of requires the President to certify that graphic community. This new, enlarged START II. And we have agreed on the the inclusion of Poland, Hungary, and NATO is not intended to be, nor do I outlines of a Start III treaty that will the Czech Republic will not increase believe it will be, a threat to any other cut both United States and Russian nu- the overall U.S. share of the NATO State or group of States. clear arsenals to 80 percent below their common budget, and that the United As our Secretary of State has put it, cold war peak. Russia has joined us in States is under no obligation to sub- the strategic rationale for enlarging banning nuclear testing and ratifying sidize the costs of new members joining the Alliance is straightforward. Admit- the treaty to outlaw chemical weapons. the Alliance. The President must also ting Poland, Hungary, and the Czech Now, all this is not to say that future certify that enlargement will not un- Republic to NATO ‘‘will make America NATO-Russia or United States-Russia dermine our ability to meet other secu- safer, NATO stronger and Europe more relations will be smooth and trouble rity obligations. peaceful and united.’’ I believe that. free. There probably will be issues in Finally, the resolution of ratification A larger NATO will make the world the years ahead on which we will dis- also includes a reporting requirement safer by expanding the area of Europe agree and which we will have to work which will provide Congress with de- where wars do not happen. Twice in through. But if Russian policy and/or tailed information on the national de- this century we have sent our sons and Russian-European relations should fense budgets of NATO members, their daughters across the Atlantic to Eu- sour, it is my belief that it will be be- contributions to the common budget, rope to fight and die in world wars cause of the internal dynamics of Rus- and U.S. costs associated within en- which began in Europe. By reaffirming sia itself, not because of NATO enlarge- largement. our commitment to an enlarged NATO, ment. In fact, it is my belief that en- So, as we proceed with the process of history teaches us that we make it less largement of the Alliance and engage- enlargement, this information will likely that we will be called to do so ment with Russia may offer increased allow Congress to make a determina- again. It has often been said that vigi- opportunity for the development of a tion about the efforts that our allies lance is the price of freedom. NATO re- democratic Russia and an even more are making and, if necessary, take ac- mains a form of vigilance. productive relationship between Russia tion at the appropriate time to ensure A larger NATO will also be a stronger and the United States. that the burdens of the expanded alli- NATO. To align themselves with I strongly believe that a key and ance are fairly met. NATO, Poland, Hungary and the Czech critical outcome of NATO enlargement In summary, I believe the inclusion Republic have strengthened their must be a greater engagement with of Poland, Hungary, and the Czech Re- democratic institutions and resolved Russia to assure that NATO enlarge- public in NATO will contribute to a ethnic and border disputes in the re- ment is not perceived as a threat nor stronger, more stable, and more secure gion. They are bringing their militaries as an act that in any way signals ag- Europe, one that is even a more reli- into alignment with the requirements gressive intent. It is this path, I be- able partner for the United States. of NATO membership. They have met lieve, which offers the best hope for a Such a Europe is clearly in U.S. na- the requirements for application: peaceful and secure Europe in the dec- tional interests, and I urge my col- democratic reform, development of free ades ahead. leagues to vote in favor of the resolu- market economies, and that each coun- A third area of concern is questions tion of ratification. try be able to make a substantial mili- which have been raised about the costs I yield the floor, and I suggest the ab- tary commitment to the alliance. of enlargement. sence of a quorum. The United States has important po- NATO has estimated that the com- The PRESIDING OFFICER. The litical, economic, security and, yes, mon fund cost for enlargement will be clerk will call the roll. moral and humanitarian interests in $1.5 billion over 10 years. The U.S. The bill clerk proceeded to call the Europe. These interests demand con- share of these enlargement costs is roll. tinued active U.S. engagement in the about $360 million, in proportion to the Mr. WELLSTONE. Mr. President, I transatlantic community. Just as current 24 percent U.S. share for com- ask unanimous consent that the order NATO has for the past 50 years, I be- mon-funded projects. I believe that this for the quorum call be rescinded. lieve that an enlarged Alliance will cost for the U.S. share of enlargement The PRESIDING OFFICER. Without provide an effective mechanism to is reasonable. objection, it is so ordered. maintain a more unified European In my mind, however, the critical PRIVILEGE OF THE FLOOR community with shared values. cost issue is burdensharing. If we go Mr. WELLSTONE. Mr. President, I The second issue which I mentioned, forward and enlarge and adapt the Alli- ask that Corey Perman, who is a fellow the future of NATO-Russia relations, is ance, all NATO members must be will- in my office, be granted the privilege of one which I know is of great concern to ing to pay their fair shares. the floor. many of our colleagues. Let me share I must say I was very concerned last The PRESIDING OFFICER. Without my perspective on this issue. year when French President Chirac objection, it is so ordered. I would agree with some who oppose commented, in effect, that France Mr. WELLSTONE. Mr. President, it enlargement that if it inflames ‘‘the would not pay one more centime for is my understanding—although I think nationalistic, anti-western and mili- the costs of enlargement. really what we are doing here is just taristic tendencies in Russian opin- During the hearings conducted by the making opening statements on NATO ion,’’ as George Kennan recently wrote, Foreign Relations Committee, assur- expansion—and my hope, if not this then it truly would be a questionable ances were received from the adminis- week then when we come back to this course of action. But I do not really be- tration that all allies will, in fact, pay discussion, that a number of us will lieve that NATO enlargement provides their fair share. And, despite the ear- have amendments on the floor and that a realistic basis for this thinking. lier negative French comments, both we will have, hopefully, a sharper and In fact, for all the politicking against the current members of NATO and the more focused debate. NATO enlargement inside Moscow’s three prospective members have Mr. President, I speak on the floor of ring road, many thoughtful Russians, pledged that, indeed, they will meet the Senate about a matter that I think especially younger ones, realize that their share of Alliance costs. is of great importance. I think the de- NATO enlargement is not a threat. I have been reassured by these com- cision that we make here in the Senate Russia now has a constructive rela- ments, and I have also worked with the about whether or not to support expan- tionship with NATO. Our troops are co- chairman and ranking member of the sion of NATO will, as a matter of fact, operating in Bosnia. Russia has re- Foreign Relations Committee to assure crucially affect the quality or lack of quested that their troops be allowed to that strong, clear, and unambiguous quality of the lives of our children and participate in all future Partnership language regarding costs and our grandchildren. I have given this March 19, 1998 CONGRESSIONAL RECORD — SENATE S2257 matter a great deal of thought. For the questions that I have had and to talk ultranationalists who oppose democ- last year I have had a lot of discus- about some of the answers that have racy? George Kennan, who is probably sions, a lot of briefings with a lot of been given but which I do not think are over 90 now, a great scholar—George people on both sides of the question. I persuasive answers. Kennan is probably as wise and pro- have done my very best as a U.S. Sen- First, what military threat is NATO found a thinker as we have in our coun- ator from Minnesota to inform myself. expansion intended to address? The try about Russia, about the former So- This is a very difficult decision to Russian military has collapsed, the viet Union. I might add—and I have make. Russian Army’s ability to quell tiny, said this to friends—my father, who There are thoughtful and knowledge- ill-equipped Chechen forces raises was born in the Ukraine, born in Odes- able Senators who are on the other side doubts about Russia’s capability to sa, his family then moved to Russia— from where I am. Certainly there are threaten its former Eastern bloc allies they kept moving to stay one step thoughtful and knowledgeable Min- in the foreseeable future. ahead of the pogroms—he was a Jewish nesotans, whom I respect greatly, who Second, arms control agreements immigrant; he came over in 1914 at the have urged me to vote in favor of ex- signed between 1987 and 1993, that were age of 17. He never saw his family panding NATO. So have many of my pushed through by Presidents Reagan again. My father had the honor many colleagues. So has President Vaclav and Bush working with President times—he passed away in 1983—but he Havel from Czechoslovakia, who I be- Gorbachev, have helped to establish a had the honor many times to speak lieve is one of the giants of the 20th new security structure that makes a with and meet with George Kennan. century, a playwright and former pris- surprise attack on Central Europe vir- My father, who spoke 10 languages flu- oner of conscience. When he speaks, tually impossible. ently—I am sorry to say I don’t—but with such passion, about the impor- Third, there is peace between states my father, who spoke 10 languages flu- tance of expanding NATO, I listen. I in Europe, between nations in Europe, ently, had such great respect for will tell you, probably more than any- for the first time in centuries. We do George Kennan’s mastery of the lan- thing, I would like to cast a vote that not have a divided Europe, and I worry guage and his understanding of Russia. would please President Havel. about a NATO expansion which could George Kennan has said that expand- Why, then, do I oppose the expansion redivide Europe and again poison rela- ing NATO ‘‘may be expected to inflame of NATO? Because I have come to be- tions with Russia. Why, then, are we nationalistic anti-Western and mili- lieve that it would lead to the redivi- rushing to expand a military alliance taristic tendencies in Russian opinion sion of Europe and that we would need- into Central Europe? and to have an adverse effect on the de- lessly poison U.S. relations with Russia How can Russia not feel threatened velopment of Russian democracy.’’ for years to come and increase the by, one, the prospect of NATO forces I urge my colleagues to carefully prospects that in the post-Yeltsin moving hundreds of miles closer to its consider George Kennan’s words before world—President Yeltsin will not be borders and, two, the possibility of fur- they cast their votes on ratification of there forever—the ultranationalists ther NATO expansions, including even NATO expansion. and anti-U.S. forces, militaristic the Baltic States? This has all been I want to say this about the process: forces, will gain power. left, as my colleague the distinguished I am in sharp disagreement with the Before I go into greater detail on the Chair knows, open-ended. majority leader on the way we are reasons for my opposition to enlarging Although the administration claims doing this. We had hearings in the Sen- NATO, just permit me to say a few that extending NATO toward Russia’s ate Foreign Relations Committee. I words about the process that I have borders would not threaten Russia, give Chairman HELMS full credit for gone through to reach this decision. there seems little doubt that many that. He and Senator BIDEN—who takes Again, I understand full well that our Russians feel threatened, especially, I a very different position than I do— decision has enormous implications for argue, any number of the opinion lead- have been very respectful about the our country and the world. I am a ers in Russia. Whatever explanation need to have a debate. But the way we member of the Senate Foreign Rela- there is for the fact that Russian poli- are doing this is we are doing it in bits tions Committee. We have had any ticians, the reformers, the pro-Western and pieces. We should have been on the number of different hearings on this. I democrats to the centrists to the Com- education bill, and we have just come have read as many articles as I can munists and even to the extreme na- back to NATO as filler until we get read and have talked with as many tionalists, who may agree with us on back to the education bill. It is a way people as I can talk with. I want to as- little else, all strongly oppose NATO of avoiding debate about education and sure my fellow Minnesotans and my expansion. education amendments. colleagues that in reaching this deci- In pursuing the NATO expansion, This decision we are going to make sion I have done my homework. why is the administration disregarding about NATO expansion is as important That does not mean I am arrogant the warnings of George Kennan and a decision as we are ever going to about it. That does not mean that I be- other distinguished Russian scholars make. But Senators coming out here, lieve the people who take a different that NATO expansion is likely to sow as I have, individually and then leaving position have not done their home- the seeds for a reemergence of anti- after they give speeches is not enough. work. But there are a number of ques- democratic and chauvinistic trends in Yesterday, we had some good discus- tions and doubts that I have. I have Russia? sion. I hope next week, or whenever we submitted questions in writing to Sec- I am especially puzzled by this since take this back up, we will figure out a retary of State Albright and to other it must be evident to both supporters way to have Senators out here with key administration officials. Last June and foes of NATO expansion that Euro- amendments and we can have a give- I sent a letter to President Clinton, co- pean security and stability—and I need and-take discussion and we can have an signed by my distinguished colleague to make this point twice—that Euro- important debate about this. Senator HARKIN, where we raised a pean security and stability is greatly What basis is there for Secretary number of different questions. Unfortu- dependent on Russia’s successful tran- Albright’s claim that expanding NATO nately, at least from my point of view, sition to democracy. That, I think, is will produce an ‘‘undivided’’ Europe? a number of these questions are still the central point. A democratic Russia Rather than creating an undivided Eu- out there and administration officials is unlikely to threaten its neighbors. I rope, my view is that NATO expansion have not allayed my concerns about am worried, I am terribly worried. I would re-create a dividing line in Eu- NATO expansion. So, as I give this think this is a profound mistake. I rope, only further to the east than the matter a great deal of thought, care- think this NATO expansion could original cold war dividing line, and I do fully weighing the pros and the cons of threaten that democracy in Russia, not consider that to be progress for the NATO expansion and meeting with and I think, if we do not have a suc- world. those who have strong expansionist cessful transition to democracy in Rus- In fact, President Clinton himself, viewpoints, I still believe that I must sia, that, in turn, threatens European before he decided to back NATO expan- oppose NATO expansion. security and stability. sion, avowed that it would ‘‘draw a new Permit me to outline my concerns. Why then are we considering a step line through Europe just a little fur- The best way is for me to summarize that is apt to strike at Russian ther east.’’ This is hardly an academic S2258 CONGRESSIONAL RECORD — SENATE March 19, 1998 question, for I believe that a Europe George Kennan’s words have already mocracy and, indeed, too much eco- without dividing lines is vital if the proved to be prophetic. The START II nomic pain for too many people in the continent is to be peaceful, prosperous agreement is stalled in the duma, and country. and secure. That is why I think we will troubling frictions have developed with I will never forget being on the be making a fateful mistake if we vote Russia on a number of other issues, Trans-Siberian Railroad and talking to for the NATO expansion, if we support ranging from U.S. policy toward Iraq a woman, I am sorry to say, through a this. to the management of Russia’s nuclear translator and having her say to me, Finally, Mr. President, I must ask materials. ‘‘You can’t eat freedom.’’ whether it makes sense for the admin- I urge my colleagues to ponder What I worry about—I don’t think istration to contend that a key reason George Kennan’s powerful arguments this issue is the issue alone, and I know NATO expansion is necessary is that it and to join me in opposing ratification there have been public opinion polls re- will promote democracy, stability and of NATO expansion. economic reform in Central Europe. cently taken—I am sure my colleague Mr. President, I ask unanimous con- from Delaware, Senator BIDEN, has spo- There are a whole lot of countries in sent that the text of George Kennan’s the former Soviet Union for whom that ken about some of that—where a ma- article be printed in the RECORD at the jority, not a large majority, but a ma- challenge is out there. I am not even end of my statement. sure these countries would be the first jority says they favor NATO expansion. The PRESIDING OFFICER. Without What I worry about is this can be a countries by that criteria. But what I objection, it is so ordered. do know is that, if the administration triggering event if things don’t go well. (See exhibit 1.) I am worried if things do not go well really believes that a prime goal of Mr. WELLSTONE. Let me conclude economically; I am worried if there is a NATO expansion is to solidify democ- on a personal note. What I have tried considerable amount of instability, if racy and economic reform, then per- to say on the floor of the Senate, and I President Yeltsin should run into dif- haps we ought to really think about want to summarize, because, again, I ficulty with an illness and should pass other countries first. Yet I think that actually believe, without being melo- away; I am worried about what is going would be a mistake. And, most impor- dramatic, I can truthfully say this has to happen in the future, not in the dis- tant of all, if we are going to be talking been one of the most difficult deci- tant future but in the medium future about expanding markets and expand- sions. I do not believe for a moment and maybe in the near future. I do not ing democracy, why don’t we use our that people who favor NATO ratifica- think the benefits of NATO expansion leverage—the United States of Amer- tion are doing it because of simplistic come close when measured up against ica—to promote membership in the Eu- thinking or because they have not what I consider to be the very real dan- ropean Union? thought this issue through, although I gers of doing this. I think that is the single best way think all of us before we cast the final that our country could exert its leader- vote should inform ourselves. I think we are making a fateful deci- ship. The single best way that we could Some people I have tremendous re- sion. I said in the Senate Foreign Rela- exert our leverage for Poland, for Hun- spect for strongly favor NATO ratifica- tions Committee—I like to say it be- gary, for the Czech Republic, if the tion. I have met with people back in cause my father was my teacher. My goal of this is to expand markets and Minnesota—Czechs, Hungarians and father—I miss him, I wish he was alive. democracy, would be for the United Poles—people who feel so strongly I wish he was here to provide me with States to be the leader, the leading about this, wonderful people, people advice. When I was growing up, I was a voice in calling for expansion in the who have been big supporters of me, little embarrassed by my father be- European Union. and they are disappointed in me. cause he was very ‘‘old country.’’ He Let me simply say that I do not I want to say one more time, I have was almost 50 when I was born. He think a military alliance is the way to done my best to really be a scholar and wasn’t cool and didn’t fit in and really do that. I do not think a military alli- to study this matter. I have tried to didn’t fit in with my friends’ parents. ance has as its primary goal expanding meet with people representing different When I got to be high-school age, the markets and democracy, and, more- points of view. But I very honestly and age of some of the pages here, I realized over, I think we take a terrible risk. truthfully believe that this would be a what a treasure he was. For 3 years be- In closing, I would like to quote from fore I went away to the University of a New York Times op-ed written over a terrible mistake. I think the way to ex- pand democracy and market econo- North Carolina, every night at 10 year ago by George Kennan, a man o’clock, except for the weekends, I who, as I said, I have long admired for mies, which is a very important goal for Hungary, for the Czech Republic, would meet him in our kitchen and we his remarkable contributions to Amer- would have sponge cake and hot tea, ican diplomacy and scholarship and for Poland, for other countries, is membership in the European Union. and he would talk about the world. For keen insights into Russian history, pol- 3 years, I had a chance to just listen to itics and diplomacy: Our country should be using our lever- age to make that happen. my father and learn from him. I really . . . something of the highest importance believe that my father would say to me is at stake here. And perhaps it is not too I think there is no reason for NATO late to advance a view, that, I believe, is not expansion. I see no military threat today that George Kennan is right and only mine alone but is shared by a number of that calls for expansion of a military that we will make a fateful decision if others with extensive and in most instances alliance. I think the downside is that we vote for ratification of this NATO more recent experience in Russian matters. we risk signing arms agreements with agreement. The view, bluntly stated, is that expanding Russia, we risk poisoning relations Mr. President, it is with strength and NATO would be the most fateful error of feeling very strongly about my posi- American policy in the post-cold-war era. with Russia, we risk putting the demo- cratic forces in Russia in peril, and I tion—but nevertheless it is a difficult Mr. President, I say to my col- think if we don’t have a stable Russia, decision—that I speak today on the leagues, let me repeat this. I am if we don’t have a secure Russia, then floor. I urge my colleagues to oppose quoting a profound thinker. George all of Europe is threatened by that. ratification of NATO expansion. I shall Kennan states: I had a chance to travel to Russia a vote no, though I am hopeful that The view, bluntly stated, is that expanding few years ago. I wanted to visit where maybe we will be able to pass some NATO would be the most fateful error of amendment which I think will make a American policy in the entire post-cold-war my father grew up since he could never era. go back because the Communists ruled. huge difference. Such a decision may be expected to . . . re- I went there full of hope, and I came I yield the floor. store the atmosphere of the cold war in East- back with less hope. Of course, I am an EXHIBIT 1 West relations, and to impel Russian foreign optimist; I am always hopeful. The rea- [From the New York Times, Feb. 5, 1997] policy in directions decidedly not to our lik- son I had less hope is because of all the ing. And, last but not least, it might make it A FATEFUL ERROR much more difficult, if not impossible, to se- economic disintegration, how difficult cure the Russian Duma’s ratification of the a transition it is for this nation to (By George F. Kennan) START II agreement and to achieve further move from a totalitarian government, In late 1996, the impression was allowed, or reductions of nuclear weapons. to move from Communist rule to de- caused, to become prevalent that it had been March 19, 1998 CONGRESSIONAL RECORD — SENATE S2259 somehow and somewhere decided to expand ferences are settled without drawing a tionist, elitist and shortsighted. It NATO up to Russia’s borders. This despite sword against one another. NATO’s key could drive them to make other alli- the fact that no formal decision can be made alliance was based upon a mutual pact ances for their own collective protec- before the alliance’s next summit meeting, in June. of deterrence from external threats tion and rather than resulting in a se- The timing of this revelation—coinciding . . . and lets be honest—it was and I ries of treaties the likes of which have with the Presidential election and the pursu- stress was, an alignment to offset the fostered the most fruitful 50 years in ant changes in responsible personalities in voracious behemoth called the Soviet history, we will set the stage for a Washington—did not make it easy for the Union. The Soviet Union is dead. We complicated entanglement of alliances outsider to know how or where to insert a need to keep it so. Expansion of NATO which will look curiously like those modest word of comment. Nor did the assur- to include nations who have struggled which precipitated World War One. We ance given to the public that the decision, however preliminary, was irrevocable en- to extricate themselves from years of do not need to learn that lesson all courage outside opinion. slavery under the yoke of Leninist/Sta- over again. But something of the highest importance linist dictatorial regimes will insure I am very comfortable in joining the is at stake here. And perhaps it is not too the eternal demise of a world-com- company of such individuals as General late to advance a view that, I believe, is not munist conspiracy. Collin Powell, General Norman only mine alone but is shared by a number of NATO was a major contributor to the Swartzkopf, Former Sec Def Richard others with extensive and in most instances successful end of the Cold War and was Cheney, Former Secretaries Baker, more recent experience in Russian matters. in fact responsible for a 50 year period Eagleburger, Haig, former Ambassador The view, bluntly stated, is that expanding NATO would be the most fateful error of of peaceful coexistence in Western Eu- Kirkpatrick, and a host of other Sec- American policy in the entire post-cold-war rope; the longest such period in modern retaries, Generals, Admirals and other era. history. In order to continue to fulfill distinguished personages. So, I call Such a decision may be expected to in- its purpose of ensuring peace and free- upon my colleagues to support an ex- flame the nationalistic, anti-Western and dom, NATO needs to adapt to a new pansion of freedom, democracy and militaristic tendencies in Russian opinion; Europe, a Europe without a Soviet-alli- peace vote to support including Poland, to have an adverse effect on the development ance but a Europe which faces a myr- Hungary and the Czech Republic in the of Russian democracy; to restore the atmos- phere of the cold war to East-West relations, iad of other challenges. NATO family of nations. and to impel Russian foreign policy in direc- As our country adapts to a changing Mr. WELLSTONE. Mr. President, I tions decidedly not to our liking. And, last world situation, a world without a Cold suggest the absence of a quorum. but not least, it might make it much more War, so must our alliances. NATO must The PRESIDING OFFICER. The difficult, if not impossible, to secure the change or become a mere relic of the clerk will call the roll. Russian Duma’s ratification of the Start II Cold War. Those who advocate the sta- The bill clerk proceeded to call the agreement and to achieve further reductions tus quo ask us to live in a non-existent roll. of nuclear weaponry. past. Mr. SMITH of Oregon. Mr. President, It is, of course, unfortunate that Russia To those who claim that the expan- I ask unanimous consent that the order should be confronted with such a challenge at a time when its executive power is in a sion of NATO will be a threat to the for the quorum call be rescinded. state of high uncertainty and near-paralysis. Russian people, I note that the 50 years The PRESIDING OFFICER (Mr. And it is doubly unfortunate considering the of relative peace on the European con- HAGEL). Without objection, it is so or- total lack of any necessity for this move. tinent extended to the Russian border, dered. Why, with all the hopeful possibilities engen- as well. Stability in the region has Mr. SMITH of Oregon. Today I wish dered by the end of the cold war, should been and will be stability for the Rus- to speak from the heart about a deci- East-West relations become centered on the sians. NATO poses no offensive threat sion we will make as U.S. Senators question of who would be allied with whom to any other nation. It is a gathering of about one of the most solemn issues and, by implication, against whom in some that we will face, and that is whether fanciful, totally unforeseeable and most im- countries who want to break the cycle probable future military conflict? of war. or not we will expand NATO to include I am aware, of course, that NATO is con- For those who are afraid of Russians Poland, Hungary, and the Czech Repub- ducting talks with the Russian authorities who threaten their neighbors because lic. in hopes of making the idea of expansion tol- these nations desire peaceful alliances, I would like to put some personal erable and palatable to Russia. One can, in I say, ‘‘Do not bow to the will of a few context into what I am about to say. the existing circumstances, only wish these radical extremists; stand up for those Like you, Mr. President, I grew up in a efforts success. But anyone who gives serious who strive to join a community of free time when we could accurately be de- attention to the Russian press cannot fail to note that neither the public nor the Govern- and democratic nations who are our scribed as children of the cold war. Un- ment is waiting for the proposed expansion neighbors. Do not let the Russians run like you, I did not serve in Vietnam, to occur before reacting to it. our foreign policy.’’ but grew up under the threat of nuclear Russians are little impressed with Amer- For those who say that the nations of annihilation. ican assurances that it reflects no hostile in- Central Europe face no threat today, I I remember as an elementary school tentions. They would see their prestige (al- say that this expansion is the most child going through drills where the ways uppermost in the Russian mind) and likely way to preserve this situation. teacher would tell us to get under our their security interests as adversely affected. For those who claim that this will di- desks and hope for the best. It was a They would, of course, have no choice but to accept expansion as a military fait accompli. lute NATO, I say that Poland, Hungary time when, frankly, we were taught to But they would continue to regard it as a re- and the Czech Republic, whose people be afraid. buff by the West and would likely look else- have demonstrated their embrace of I was too young to remember the where for guarantees of a secure and hopeful democracy, will add a renewed strength Hungarian uprising in 1956, but I was future for themselves. of purpose to the alliance. old enough to remember the Prague It will obviously not be easy to change a Yes, there are questions which must Spring of 1968. I remember holding my decision already made or tacitly accepted by be answered concerning the costs to breath as I watched the Solidarity the alliance’s 16 member countries. But the United States of this expansion. I there are a few intervening months before movement develop in Poland and won- the decision is to be made final; perhaps this have stated time and again that the dering how long it would be until So- period can be used to alter the proposed ex- costs must be defined and we will hold viet tanks snuffed out that breath of pansion in ways that would mitigate the un- NATO to those numbers. Our coffers freedom. happy effects it is already having on Russian are not limitless. But any costs which And I remember with amazement and opinion and policy. insures peace and stability will be less with emotion the night when this Na- Mr. BOND. Mr. President, NATO has than the costs of the anarchy and tion sat transfixed at the falling of the been the keystone for Western Democ- chaos of medieval conflicts or a re- Berlin wall. I never thought that would racy for the past 50 years. It has stood sumption of the Cold War. To have set happen in my lifetime, and yet it did. I solidly as a successful deterrent a list of conditions for admittance to remember how courageous I thought it against the spread of Communism and the organization, and then to change was of President Ronald Reagan when as a community of democracies where our minds to those countries which he went there, like his predecessor, markets have flourished and where dif- have achieved those conditions is isola- John Kennedy, and spoke about the S2260 CONGRESSIONAL RECORD — SENATE March 19, 1998 wall and challenged Mr. Gorbachev to Whether you agree with expanding always less expensive than war. So tear it down. NATO or not, I believe the crux of the when a mother in Oregon asks me, why As a child of the cold war, I now issue is two questions. As we stand at should we expand NATO and put at risk come, as a Senator from Oregon, to the end of this century I ask you, has the life of a son or daughter to die for this decision about what we do in Eu- human nature fundamentally changed a Czech, a Hungarian or a Pole, my an- rope, whether we now expand NATO. from this century’s beginning to its swer to her is that in order that your Though an Oregon Senator, I grew up end? I ask you the second question: Is son or daughter not die in that cause, fairly close to here in Bethesda, MD— the world better because of the stand- we should expand NATO. my father and mother moved our fam- ing and position of the United States in Now, where does this leave Russia? I ily from Oregon to Maryland so my fa- the world as a leader of the free world? am not anti-Russia; I am hopeful for ther could work for General Eisen- I suggest the answer to the first ques- Russia. But as part of NATO expansion, hower, in his administration. tion is, human nature has not fun- the Clinton administration has held At the beginning of the Kennedy ad- damentally changed but that the world out to Russia, along with our NATO al- ministration, my cousin, Stewart is a better place because the United lies, the Russia-NATO Founding Act. I Udall, was nominated as Secretary of States of America has lived up to its happened to be present in Paris when the Interior. And I suppose because of international responsibilities. this was signed. Now, there are parts of that correlation between a Republican I have been throughout my life a stu- this that give me heartburn, but there and a Democrat administration and dent of history. I have particularly en- are parts that give me great hope, be- family ties that went across the aisle, joyed European history. As I look at cause with this Founding Act I think my family participated in a number of the Balkans today and I see the tur- what we have done is held out to Rus- the inaugural events for President moil and the terror that rage between sia the opportunity to develop in the John F. Kennedy. the Balkans, the Croats and the Serbs, best of ways and to become a part of I remember it was a very cold Janu- I am reminded that the Balkans are the Western community of European ary day. I remember, with my family, but a microcosm of Europe as a whole nations. But if it does not develop that hearing words that struck me then as throughout its history. As I look at way, what we are doing by expanding important. John F. Kennedy called out this century and European history, I NATO is hedging against the worst to my generation—our generation, Mr. see the United States of America as kinds of developments there. I think President—of Americans to accept the having twice been drawn into European we must do that. I think we owe it to torch of liberty. At least that is what I civil wars over the first 50 years. But our friends, the Czechs, the Hungar- heard. I was only 8 years old, but even for the last 50 years we have been wag- ians, and the Poles. But more, we owe though that young, I felt his words’ im- ing peace. And we have done it through it to ourselves, as defenders of peace pact. I would like to begin by quoting the North Atlantic Treaty Organiza- and liberty in the world. some of his words that he spoke that tion. I began with the words of John F. day just outside of this building. And lest you think this does not mat- Kennedy and I will end with them, We dare not forget today that we are the ter anymore and it is over and we can also, again from his inaugural address. heirs of that first revolution. Let the word go home, I remind you, looking further I will say it is my view that America is go forth from this time and place, to friend back in history, you will see since the the indispensable nation. Europe needs and foe alike, that the torch has been passed 1600s when Europeans began to settle what we bring in its history. They need to a new generation of Americans—born in in America establishing colonies in us in Bosnia to help keep the peace. this century, tempered by war, disciplined by a hard and bitter peace, proud of our ancient Virginia, Massachusetts, and through- They need us in NATO in order that heritage—and unwilling to witness or permit out the eastern seaboard—since that they not begin fighting again. I believe the slow undoing of those human rights to time there have been nine major Euro- NATO is really responsible for the which this Nation has always been commit- pean wars. In every one of them, Amer- Franco-Prussian rapprochement that ted, and to which we are committed today at icans died. We were drawn into them. has occurred since the founding of home and around the world. America has a role in European his- NATO. I believe NATO’s existence has Let every nation know, whether it wishes tory. We have come out of Europe; we helped to settle disputes between the us well or ill, that we shall pay any price, bear any burden, meet any hardship, support are even a European power. I suggest British and the Spanish. It is helping any friend, oppose any foe, in order to assure to you that Europe has been at peace to settle disputes between the Hungar- the survival and the success of liberty. for 50 years because America did not ians, who are offered membership, and This much we pledge—and more. retreat and become isolationist. NATO the Romanians, who still want mem- Well, that set a standard for this has been called the most successful bership in NATO. In instance after in- country, a high water mark, if you military alliance in history, and so it stance, you will see where NATO mem- will. And many criticized this as impe- is. bership provides a vehicle for these rialistic rhetoric. But neither that I believe that all the discussion about kinds of differences to be worked out. President nor any since him have sug- the costs of NATO expansion—we have And they are long-lasting cultural, eth- gested that we aspire to territory— heard wild estimates that are undoubt- nic, religious kinds of differences what we do aspire to is freedom. edly false, and we have heard other es- which have manifested themselves Prior to winning the cold war, a hot timates that are as low as saying that throughout European history in blood- one had ended. And then we won the over 10 years America will pay $400 shed. NATO means that those things Cold War. million to participate in this portion of don’t occur. Again, waging peace is al- As World War II ended, an agreement NATO expansion. I believe the latter. I ways less expensive than waging war, called Yalta was struck, signed by have to say, if history teaches us any- either in terms of treasure or espe- Churchill, Stalin, and Roosevelt. It thing, it is that nature abhors a vacu- cially in terms of human life. So we promised newly liberated countries of um and we can either fill that vacuum are, I think, the keeper of the peace, Eastern and Central Europe that they with our values or leave it there for the and it is in our interest that we remain would have a chance at freedom and mischief of others. How can we morally so. free elections. Mr. Stalin broke his say to the Hungarians, the Czechs, and In America, we often talk about the agreement and the countries of Poland, the Poles that even though we won the American dream. But really it isn’t Czechoslovakia, Hungary, and many cold war and they were at play America’s dream, it is a human dream. more were denied the promise offered throughout it, that we now want to It is a dream that all people aspire to. at Yalta. walk away from this victory without It is just that we enjoy it in great I suggest one of many reasons that leaving our values, democratic institu- abundance—life, liberty, and the pur- we should expand NATO is that we tions, the spreading of private prop- suit of happiness. And we must con- have a moral obligation to live up to erty, of free elections, and great tinue to keep that dream and to defend the terms that were made at Yalta but dreams for these nations? I don’t be- it in the world for our sakes, not just went unfulfilled, especially with these lieve we can. theirs. three countries, as I said, which openly I do know that history teaches us So said President John F. Kennedy in rebelled against Soviet domination. that waging peace, or peacekeeping, is 1961, March 19, 1998 CONGRESSIONAL RECORD — SENATE S2261 ‘‘To those new states whom we welcome to ondary function—the cementing of re- remains a strong, military alliance of the ranks of the free, we pledge our word lationships between former adversaries democratic nations. However, I firmly that one form of colonial control shall not in Europe—is equally as relevant in the believe that Article 10 of the Treaty have passed away merely to be replaced by a far more iron tyranny. We shall not always post-cold-war period as it was after sets a high standard for the inclusion expect to find them supporting our view, but World War II. Poland, Hungary, and of new members—not only must a we shall always hope to find them supporting the Czech Republic, as well as other country be in a position to further the their own freedom. countries in Central and Eastern Eu- principles of democracy, but must be a I believe we should expand NATO for rope that aspire to join NATO, have contributor, not just a beneficiary, of that reason, because these people de- worked to alleviate historical griev- security. The possibility of Alliance serve freedom. They can secure it with ances and build relationships with membership has been a source of hope our help. With that security will come their neighbors based on mutual trust, to countries in Central and Eastern Eu- capital and investment so that their respect, and cooperation. In doing so, rope and an important incentive for labor can be busy, so that their dreams stability in Europe has been enhanced democratic and economic reform. Were can be realized, and so that American and the likelihood that European na- the United States to impose an artifi- opportunity there can also be ex- tions will return to the competitive cial time period when NATO’s door will panded. Security goes before economic policies that led to two World Wars in be shut—despite the qualifications of a investment. It always has, and it al- the first part of this century is greatly country for membership—would send a ways will. Capital is something like a reduced. It is in the interests of the signal to these countries emerging river. It will take the course of least United States to encourage and foster from communist domination that their resistance to seek the highest rate of these developments. historical affiliation is more important progress. Last May, I travelled with President to NATO than their ability to contrib- I don’t believe our option is to ex- Clinton to Paris for the signing of the ute to security and stability in Europe. pand NATO or to leave it as it is. I be- NATO-Russia Founding Act. After wit- History awaits American leadership lieve NATO desperately needs new nessing this historic event, I was left at this propitious moment. We cannot blood. We desperately need the new with a profound feeling that NATO was be certain what the European security voice of freedom that Poles, Hungar- holding out a hand to Russia, and that environment will look like in three, ians, and Czechs will bring because addressing legitimate issues, such as five, or ten years, but if we act now, we they have known the opposite of free- international terrorism and drug traf- will be better prepared for any out- dom for too long. Some of us become ficking, could be well served by NATO come. We should not be overly con- complacent as to what that means. We and Russia acting together. However, sumed with the picture of Europe as it need their blood, we need their spirit, it is incumbent upon Russia to use this looked during the last century. It is up we need their sense of freedom, so that opportunity in a responsible manner. to the United States to outline a vision we can keep NATO fresh and alive. Our The consultative mechanism estab- of what we want Europe to look like in option in the end isn’t expanding lished by the Founding Act should be the next century. That vision is a NATO or not. But ultimately, if we one that furthers the interests of both democratic, undivided, Europe safe for don’t expand, I believe we will disband, NATO and Russia, and is not used to American commerce and friendly to and that will leave a vacuum that will infringe upon internal Alliance mat- American values. That vision includes be filled by the values of others when ters. Poland, Hungary, and the Czech Repub- history calls us to fill it on the basis of It is also imperative that the goals of lic in NATO. ours. the Founding Act are implemented in a I yield the floor, and I suggest the ab- I believe America is a better world manner that does not weaken the prin- sence of a quorum. because we are not isolationist but be- cipal function of the Alliance or The PRESIDING OFFICER. The cause we are internationalists who care threaten the interests of Central and clerk will call the roll. not for territory or treasure but for Eastern European countries that aspire The assistant legislative clerk pro- freedom and liberty. to NATO membership. ceeded to call the roll. Mr. President, the United States is Mr. President, I take this oppor- Mr. DURBIN. Mr. President, I ask engaged in an ambitious effort to re- tunity not to simply state my support unanimous consent that the order for shape the political and security struc- for the inclusion of Poland, Hungary, the quorum call be rescinded. tures of post-cold-war Europe. The goal and the Czech Republic into NATO, but The PRESIDING OFFICER. Without is to build strong states, stable democ- also to address the issue of imposing a objection, it is so ordered. racies, prosperous economies, and pause on NATO enlargement for sev- Mr. DURBIN. Mr. President, I seek friendly governments across the eral years. Before I do so, however, I recognition to speak on this issue of breadth of Europe. We are joined in emphasize that neither NATO, nor the NATO enlargement and ask unanimous this endeavor by our NATO allies and United States, has invited any country consent that Senator DORGAN be al- by newly democratic people yearning other than Poland, Hungary, and the lowed to follow me. for the opportunity to pursue political Czech Republic to join the Alliance. The PRESIDING OFFICER. Without freedom and economic prosperity. Proceeding with future rounds of en- objection, it is so ordered. This effort should fulfill the stolen largement is a decision that all mem- Mr. DURBIN. I thank the Chair. promise of Yalta, and provide the for- bers of NATO will certainly face, but is Mr. President, we are debating some- merly captive nations of Central and a question that is not before the United thing of historic proportion, and that Eastern Europe with the opportunity States Senate today. is the question of whether or not the to pursue democratic institutions and In Article 10, the North Atlantic NATO alliance shall be enlarged to in- economic development of their own Treaty clearly lays out the process by clude three countries. At this point, choice. This is accomplished first and which NATO may invite additional those three countries are Poland, Hun- foremost through the enlargement of countries to join the Alliance. This gary, and the Czech Republic. This is NATO to include Poland, Hungary, and provision states ‘‘The Parties may, by not a new concept. the Czech Republic. unanimous agreement, invite any other In 1994, the United States announced NATO has proven its value over the European State in a position to further that we were, in fact, going to consider past half century as a mechanism the principles of this Treaty and to the enlargement of NATO. Why? The through which the United States has contribute to the security of the North world has changed so dramatically. been able to exercise leadership in Eu- Atlantic area to accede to this Trea- The Berlin Wall is down. The Soviet rope. By its unequivocal commitment ty’’. Of course, any such revision to the Union has dissipated, or at least bro- to the collective defense of its mem- North Atlantic Treaty requires the ad- ken up into different political entities. bers, NATO successfully withstood the vice and consent of the United States We are starting to see the world in dif- communist threat posed by the former Senate, which is what brings us here ferent terms. For over 50 years, we saw Soviet Union during the cold war. today. the world in terms of East and West, Though confronting communism is no I wholeheartedly agree with my col- the Soviet Union and the United longer NATO’s primary purpose, a sec- leagues who want to ensure that NATO States, the cold war. S2262 CONGRESSIONAL RECORD — SENATE March 19, 1998 How many of us, as kids in the 1950s, gether in a defensive alliance, maybe ing to put their troops and the lives of huddled under our desks in preparation the defensive alliance is necessary. It their countrymen on the line. for the possibility of an air raid? Now is something to pin our hopes on the That story is repeated over and over. what a different world we live in—a relationship between the United States This is a positive thing. This is some- world where the United States of and Russia on the medical reports on thing that we should view in terms of America and its taxpayers, since 1991, Boris Yeltsin. I hope that he continues NATO’s future as really, I guess, an ex- have given to Russia over $100 billion in power for a long time. I am happy to cellent start for the 21st century—that in an effort to help that country get report that, by and large, with few ex- we are now at a point where we can back on its feet. What was once our ceptions, his relationship with the talk about all of these countries— mortal enemy, a country that we lit- United States has been a very positive which once were at war and in the past erally spent $6 trillion to defend one. But we have to accept the reality had been rivals with conflicting against, is now our ally. So we view the that there will be change in Russia. I ideologies—that are now coming to- world in much different terms, and now hope it is change for the better. gether. we should view NATO in different Now put yourself in the shoes of Po- Some have said, Well, let’s not hurry terms. land, Hungary, or the Czech Republic, this debate. Can’t this wait 6 months or My colleagues who come to the floor or, for that matter, the Baltic States. a year? I suppose it could, but I hope it in opposition to NATO enlargement are What gamble are they willing to take doesn’t, because we have spent more stuck in old thinking, as far as I am about the future of Russia? What they than 4 years preparing for this debate. We have gone through lengthy hearings concerned. They view Europe, East and have said to us is: We feel comfortable in the Foreign Operations Committee. West, in terms of lines that were drawn coming together with you in an alli- We have had many people meet—NATO by Adolf Hitler and Joseph Stalin. We ance, which will stabilize our bound- allies and others—to discuss the expan- should not. We should view Europe and aries and give us some certainty about sion of NATO. We have studied this to its future in terms of a new century our future. So if a future leader in Rus- the point where we can make an intel- and new opportunities. sia is more conservative, more liberal, ligent and mature decision, and we When you visit a country like Po- more expansionist, or more friendly, land—which I did a year ago—and real- should. they know that they have this alliance Last Friday night in Chicago, IL— ize now that the Poland of today is not to turn to. which is in my home State and which looking to the East, but rather to the When you look at those who are sup- boasts the largest Polish population West, that the Poland of today wants porting the idea of expanding the outside of the city of Warsaw, Poland— to be part of an axis which includes NATO alliance, the list is very impres- we entertained the new President of Western Europe, the United States, and sive. It includes not only General Colin the Assembly of Poland. Marian freedom-loving countries around the Powell, but former President Bush, Krzaklewski is the new President and a world, then you can understand the Margaret Thatcher, Lech Walesa, and member of the Solidarity party. I can’t momentum and impetus behind the en- Vaclav Havel. The list goes on and on tell you what this issue means to the largement of NATO. These countries and on. These leaders, worldwide, un- future of Poland. Any of you who have like Poland, Hungary, and the Czech derstand what NATO means. studied World War II and understand Republic are willing to step away from Now, let me say this. Some criticize the devastation that was wrought on the old Soviet way of doing things; this NATO enlargement by saying, Poland as a result of World War II un- they are willing to pledge themselves ‘‘There they go again. They are ending derstand how important it is to the to human rights, respecting the bor- up giving away U.S. taxpayer dollars people of Poland today to have the se- ders of their neighbors, and to civilian for the defense of Europe. Shouldn’t curity of an alliance that they can controlling of the military, and to free the Europeans be defending them- count on. We, of course, know of the markets. They are prepared to join selves?’’ The answer is, of course, that tragedy of the Polish Jews who were NATO because they know NATO is the they should. That is their own personal lost in the Holocaust, but there were future. responsibility. I, for one, in my 15 many others of other religions, and What an alliance NATO has been in years on Capitol Hill in the House and some of no religion, but they were all the history of the world. If you study Senate, have argued for burdensharing victims in World War II. The numbers the history of the world and consider at every turn in the road. I think more stretch into the hundreds of thousands all of the different countries that have and more of these countries should ac- and millions. That is the legacy of war come together for various reasons, cept that responsibility. in countries like Poland. NATO is an anomaly, NATO is an odd- But let’s be honest. If these countries For those who come to the floor say- ity. Why? Because it is a purely defen- come together, if they agree on certain ing, ‘‘Can’t we wait 6 months or a year sive alliance. It was created by the standards for their own military devel- before we give to countries like Poland United States and our allies after opment, if they agree on certain prin- the assurance that those days are be- World War II to defend Western Europe ciples, if this alliance is in place and hind them?’’ I have to say that I think against the possibility of Soviet ag- strong, the likelihood of needing these that is shortsighted. I think the right gression and expansion. Throughout its military forces is dramatically dimin- thing for America to do is to follow the history, since 1949, NATO has consist- ished. And each of these new countries leadership of the President, follow the ently stood for that principle. There is that wants to join us in NATO has bipartisan support on the floor of the not a single instance that anyone can proven their bona fides in terms of U.S. Senate, and enlarge NATO. This point to in the history of the alliance their good-faith effort to be part of a Senate should vote for the enlarge- where the NATO countries have come Western alliance by already commit- ment, first, to include Poland, Hun- together in an aggressive way to try to ting troops when we have asked, some gary, and the Czech Republic, and then, take over some other country. It is just in the Persian Gulf war, some in Bos- frankly, open it up to any other coun- not the nature of that alliance. nia. try that is able and willing to dedicate So when I hear the criticisms—and In fact, in the situation in Bosnia, itself to these same principles. you hear them from many people who Lithuania sent a brigade down and We don’t like to think in terms of the come to this floor—that the Russians within a few weeks one of their soldiers military and war; we tend to focus are worried about NATO expansion, my was killed by a landmine. It was dev- more on domestic life in the United obvious question is, Why? Why would astating news in that tiny country. It States, as we should. But I happen to any country be concerned about other might have led their legislature to con- believe that an investment in our time countries coming together simply to vene and bring their troops home from and debate on this issue at this mo- defend their own borders and pledge Bosnia. But they did not. They con- ment is the right thing to do. I believe themselves to principles that I think vened and, with a vote that should tell that if we make the proper move today, all freedom-loving countries should be you about their view of the world, this week, and next week in the Senate dedicated to? This troubles me, too. If voted to send even more forces down to to debate this issue fully and vote on there is genuine concern in Russia that Bosnia. To prove that they wanted to it, we can bring together the kind of al- these countries are going to come to- be part of this alliance, they were will- liance that will give our children and March 19, 1998 CONGRESSIONAL RECORD — SENATE S2263 grandchildren peace of mind for dec- many other countries in Eastern Eu- funding that comes from the Nunn- ades to come. I hope that we will do rope and near the Baltic Sea, NATO Lugar program—that actually helps to that, and I hope that we will under- really is their security of the future. It pay for the destruction of Russian nu- stand, as well, that what is at stake is something the United States can be clear weapons that had previously been here is more than just a debate over a proud to support. I know they will be aimed at this country. We have had single issue; what is at stake here is supportive of the values which we very substantial success in reducing whether the legacy of World War II and treasure in this country. Russia’s nuclear stockpile. the legacy of the cold war will or will Mr. President, I yield the remainder We have had that success not just be- not be revisited on our friends in Eu- of my time. cause the Soviet Union no longer ex- rope. Mr. DORGAN addressed the Chair. ists. We have had that success because The United States cannot be the po- The PRESIDING OFFICER. The Sen- Russia and the United States abide by liceman for the world, but we can ally ator from North Dakota. a series of arms control agreements ourselves with other nations of like Mr. DORGAN. Mr. President, I en- that call for the reduction of nuclear mind and like values, who will join us joyed hearing the comments of my col- weapons, the reduction of missiles, and in bringing stability to this Earth, so league from Illinois, Senator DURBIN. the reduction of bombers. And that re- that the day may never come when we He, as always, is interesting and duction has taken place. It means that are asked to send large numbers of thoughtful, and he comes to this de- this is a safer world. Americans to fight in foreign lands for bate with a substantial amount of So, the Soviet Union has disappeared. issues and causes and for American in- knowledge about the foreign policy Eastern Europe and the Warsaw Pact terests. These are things that I think issues. I appreciate his position. in Eastern Europe has dramatically are part of this debate today. I must confess, however, that I come changed. There is no Soviet Union. I close by saying that I appreciate to the Senate with a different position There is no Warsaw Pact. There is Rus- this time to speak, and I hope my other on this issue. I want to explain why I sia. There are Baltic States. There ex- colleagues will join me. I don’t know have reached that position. ists in Eastern Europe a series of coun- that there is another single issue rel- I must confess, also, that I am not tries that are now free and democratic. ative to global security that is more someone who considers himself an ex- The world has changed dramatically. important than this debate about the pert in foreign policy. There are some— All of this relates to the discussion future of NATO. I hope that the United only a handful of Members here in the we are having today. I want to describe States and our NATO allies will write Senate—who spend a great deal of their how and why. our foreign policy and plan our future time thinking about and working on But I wonder, in the context of this based on the interests and values that foreign policy issues. I have great re- issue of the reduction of the nuclear have held us together as a Nation for spect for them. But I don’t consider threat, how many of my colleagues— over 200 years. myself a part of that group of Senate for that matter, the American people— When the argument is made that foreign policy experts. are aware of an incident that occurred moving forward with the expansion of But all of us in the Senate have some on December 3, 1997, in the dark hours NATO makes some people nervous in acquaintance with the questions that of the morning. North of Norway in the Moscow, I have to ask, Why should it? are presented to us on issues of inter- Barents Sea, several Russian ballistic Why should we not even hold out the national policy. And NATO expansion missile submarines prepared to fire SS– possibility that the day will come when is one such issue. Indeed, as I indicated 20 missiles. Each of these missiles Russia will ask to be part of NATO? It yesterday, it is a ‘‘legislative main could carry 10 nuclear warheads and is not an incredible idea. The thought course.’’ NATO expansion is a very sig- travel 5,000 miles—far enough to have that they would give civilian control of nificant matter for this country and reached the United States from the the military, pledge to the same prin- for many other countries in the world Barents Sea. ciples, and cooperate with the United that are affected. One of those coun- That morning, on December 3, 1997, States—that should be the new world tries is Russia. the submarines launched 20 of those order; that should be the new thinking. Russia is an important part of our fu- SS–20 missiles. Twenty of them roared But the belief that we should hold ture, and our relationship with Russia skyward. Swiftly they rose to an alti- back and not engage these other coun- will have a significant impact on the tude of tens of thousands of feet. U.S. tries in an alliance, important for our future of everyone in this country. I satellites quickly detected these mis- security and theirs, because of some want to speak about that just a bit, be- siles and tracked them as they rose. misgivings among some hardliners in cause Senator DURBIN also alluded to Our early warning phased array radars Moscow is just plain wrong. We should that issue. in Thule, Greenland, and Flylingdales, be driven by foreign policy decisions I want to remind my colleagues that England, tracked the missiles. right for America, right for our allies. some while ago I stood on the floor of The radars and satellites alerted the We should not be driven by the melan- the Senate and held up a piece of metal U.S. Space Command Missile Warning choly of the few in Moscow who long that came from a missile silo near Center at the NORAD complex in Chey- for the return of empire. When you Pervomaysk, Ukraine, a silo that had enne Mountain, Colorado. Space Com- hear the argument made that we can held a Soviet missile aimed at the mand plotted the trajectories to deter- include Warsaw Pact countries like the United States. But the piece of metal I mine where the missiles were going. three I mentioned, and that is all right, held up here on the floor of the Senate However, within a few moments, but you can’t include former republics was no longer a missile. It was scrap every single one of those SS–20 missiles like the Baltic States, it troubles me metal. The missile is gone from the blew up at about 30,000 feet. Why? Be- greatly. My mother was born in Lith- silo and destroyed. The weapon does cause this wasn’t a Russian missile at- uania, so I come to this debate with a not any longer exist. Where there was tack. In fact, seven American weapons special interest, and maybe even some a missile with a nuclear warhead aimed inspectors were watching from a ship a prejudice is involved. at the United States, planted in that few miles away as the missiles were For 50 years, we refused to recognize ground in the Ukraine now are sun- launched from the Russian submarines. Soviet domination over the population flowers—planted on exactly that same These were self-destruct launches. It of those sovereign states and thought ground. The missile is gone. The war- was a quicker and cheaper way for Rus- they were entitled to have their own head is gone. Sunflowers are planted. sia to destroy submarine-launched bal- self-government. We ignored Soviet How did that happen? Was it by listic missiles, which it was required to domination and we fought Soviet domi- magic? No. It was as a result of arms do under the START I arms reduction nation for over 50 years. And now, to control agreements between this coun- treaty. These were self-destruct defer to some Russian thinking that try and the then Soviet Union, now launches to destroy missiles under the because these republics that were once Russia, that required the reduction of START treaty. part of the Soviet Union want to be in nuclear devices and systems to deliver These missile launches should remind NATO, that is supposedly unthinkable, them. It was also the result of U.S. all of us about what the ultimate secu- I disagree. For the Baltic States and so funding initiated here in the Senate— rity threat to the United States has S2264 CONGRESSIONAL RECORD — SENATE March 19, 1998 been. Only Russia, if it desired today, over many years and a very successful warheads will now hold sunflowers. can renew the hair-trigger nuclear ten- alliance at that. It also seems to me How many would have predicted that? sions of the cold war. Only Russia that the decision that has been made I bet almost no one. could do that. And only Russia can de- to expand NATO is largely a decision We have made enormous progress. To stroy its nuclear weapons and its deliv- that moves in the direction of forming the extent that we feel that the cold ery mechanisms, missiles and bombers, an economic alliance, or one that war and the tensions between us and by which it delivers those weapons. meets the economic needs of the new the Soviet Union, produced a nuclear Whether we like it or not, we must members. threat, and to the extent that we have take this into account when we evalu- Second, to the extent that it remains moved away from that with Russia, ate international security issues. Yes, a security alliance, it, of course, will that is wonderful progress for the en- even in the debate about the expansion require countries in Europe, many of tire world. of NATO, we must evaluate those whom can least afford it, to spend a The question today is not just a nar- issues in the context of our relation- substantial amount of additional row question of, Shall we admit three ship with Russia and with others, but money on new arms to bring them to additional countries to NATO? The especially with Russia. the standards that NATO requires. The question is much, much more than I don’t come to the floor of the Sen- requirement that the new entrants to that. It deals with other relationships. ate saying that Russia should have NATO rearm, modernize their military It deals with the issue of nuclear pro- some kind of special veto power over equipment, to bring themselves up to liferation of weapons and delivery American foreign policy. Russia should NATO standards, also means that some mechanisms and so on, and the desire really play no role in our decision of us are very concerned that in the by many of us to move along quickly, about what is best for this country. end, while some of that burden will fall not slowly, on the question of further But the opportunity to reduce the nu- on these countries, much of that bur- arms reduction talks and treaties and clear threat, the real opportunity that den will fall on us. agreements that will further reduce has allowed us to reduce in real terms This leads me to the third issue. The the nuclear threat. That is what is em- the nuclear threat, is something that question of what this expansion will bodied in this question. we should take into account. cost the United States produces an- I have spent a lot of time reading When we talk about expanding NATO swers that wildly roam all over the about this issue, studying this issue, with Poland, Hungary, and the Czech board. I have not found a good answer and trying to understand this issue. As Republic, I think of the story I heard except that most do not know the an- I said when I started, I confess I am not one day in the dark days of the fight swer to the question. It is an important a foreign policy expert. But I believe for a free Czechoslovakia when very question. What will NATO expansion very strongly that a security alliance courageous, brave men and women cost the taxpayers of the United as successful as NATO has been should were storming the streets of Czecho- States? not become an economic alliance; slovakia demanding their freedom. I And the fourth issue is the one I have should not become an alliance that im- remember the story about Mr. Havel, spoken about at length. What does poses new burdens on countries that who was a playwright and an intellec- NATO expansion mean to the long- can least afford to ramp up military tual who then became President of that term security interests of the United spending in order to comply with new democracy. I remember how at States? Will expansion of NATO lessen NATO requirements; should not, in any midnight the knock on his door from the danger of nuclear war? Will it less- event, add substantial new burdens to the Communist secret police was a en the danger of nuclear threat? Will the American taxpayers; and should knock that he knew too well because it the expansion of NATO forge a contin- not, especially and most importantly, had come before. He knew it was the do anything that interrupts the stream secret police. He knew he would be ar- ued, new, or expanded relationship with Russia that will allow us to re- of progress we have made in reducing rested again. He knew they would the nuclear threat through arms reduc- duce even further the nuclear threat? throw him in jail again, because he had tion talks, treaties, and agreements. Will NATO expansion allow us to con- been in jail before. I remember the I am fairly well convinced that this story about this courageous man and tinue to reduce the number of war- step to expand, which to some seems so what he did for his country. I remem- heads and delivery vehicles, to lessen modest, is just a step in the wrong di- ber the stories about in the middle of the nuclear threat for us and all the rection. the crowd in downtown Prague some- people of the world? I fear the answer Can we, should we, will we be in- one standing on the upper strut of a to that is no. volved with the Czech Republic, Po- streetlight hanging with one arm and I think the expansion of NATO will land, and Hungary, with or without reciting the Declaration of Independ- likely create divisiveness in our criti- NATO expansion? Of course. They are ence of the United States of America. cal relationships with Russia and with wonderful people. They are countries Think of that—a crowd in Prague in- some other nations as well. We have that are very important. Our relation- spiring itself by a recitation of the made great progress in our relationship ship with them is very important. I Declaration of Independence of the with Russia. I hope that progress will have just come to the conclusion, how- United States of America. include a decision by the Russian ever, that this proposal to expand We understand what we mean to Duma to ratify START II and imme- NATO is not a step in a constructive much of that part of the world. We diate movement by Russia to begin direction. know that this democracy has given START III talks. But I fear that NATO The columnist David Broder yester- great inspiration to those who want expansion will retard that kind of day wrote a column that I think was freedom and who have had the courage movement, which I think is very im- important in this discussion. He indi- to fight for freedom in their countries. portant to us. We must continue the cated that this debate about NATO We understand all of that. And I think progress we have made in reducing the seemed to be forming here in the Con- it is critically important that in every nuclear threat. gress with almost no fanfare, and the way possible we support these emerg- It is interesting to me how many peo- implication of his column was that ing democracies. Our relationships ple would have predicted in this Cham- that is not the way it should happen. with them are important to this coun- ber—the best foreign policy thinkers or Mr. President, I ask unanimous con- try. anywhere in this country—how many sent that Mr. Broder’s column be in- However, expanding NATO is a much would have predicted that, if you serted into the RECORD. larger question than that as well. It in- backed up 10 years ago, that in 5 years There being no objection, the column volves a number of broader issues. or 10 years the following will exist in was ordered to be printed in the Again, I say that there are other Sen- our world: There will be no Berlin Wall, RECORD, as follows: ators who have had longer relation- there will be no Warsaw Pact, Eastern [From the Washington Post, Mar. 18, 1998] ships with the question of NATO than I Europe will be free, there will be no So- DECIDING NATO’S FUTURE WITHOUT DEBATE have had. viet Union, the Ukraine will be nu- (By David S. Broder) But it seems to me, first, that NATO clear-free, and spots in the Ukraine This week the United States Senate, which has largely been a security alliance that used to hold missiles and nuclear counts among its major accomplishments March 19, 1998 CONGRESSIONAL RECORD — SENATE S2265 this year renaming Washington National George Kennan, the elder statesman who tunity off and on during the day to lis- Airport for former president Ronald Reagan half a century ago devised the fundamental ten to some of the debate on the NATO and officially labeling Saddam Hussein a war strategy for ‘‘containment’’ of the Soviet enlargement issue. I have to say there criminal, takes up the matter of enlarging Union, has called the enlargement of NATO have been some excellent speeches and the 20th century’s most successful military a classic policy blunder. Former senator alliance, the North Atlantic Treaty Organi- Sam Nunn of Georgia, until his retirement some very thoughtful observations zation (NATO). last year the Democrats’ and the Senate’s about the importance of this legisla- The Senate just spent two weeks arguing leading military authority, told me, ‘‘Rus- tion and what we should do. I am glad over how to slice up the pork in the $214 bil- sian cooperation in avoiding proliferation of we have gone ahead and taken it up. It lion highway and mass transit bill. It will, if weapons of mass destruction is our most im- has given Members notice that we are plans hold, spend only a few days on moving portant national security objective, and this moving toward a period where we will the NATO shield hundreds of miles eastward [NATO expansion] makes them more sus- have the final debate on amendments to include Poland, Hungary and the Czech picious and less cooperative. .. . The admin- and a vote on this issue. But I have Republic. istration’s answers to this and other serious The reason is simple. As Sen. Connie Mack questions are what I consider to be plati- been very impressed with the quality of of Florida, the chairman of the Senate Re- tudes.’’ the speeches that I have heard today. publican Conference, told me while trying to Former senator Mark Hatfield of Oregon, We will continue on until, I think it is herd reluctant senators into a closed-door for 30 years probably the wisest ‘‘dove’’ in quarter till 5, this afternoon on NATO discussion of the NATO issue one afternoon that body, agrees, as do former ambassadors enlargement. We will continue to have last week, ‘‘No one is interested in this at to Moscow and other Americans with close debate on NATO enlargement until we home,’’ so few of his colleagues think it contacts in Russia. get something worked out on the worth much of their time. To the extent this momentous step has It is a cliche to observe that since the Cold been debated at all, it has taken place out- Coverdell education savings account War ended, foreign policy has dropped to the side the hearing of the American people. Too legislation and conclude that, and then bottom of voters’ concerns. But, as two of bad our busy Senate can’t find time before it we will go to the final round of debate the veteran senators who question the wis- votes to let the public in on the argument. and amendments on NATO enlarge- dom of NATO’s expansion—Democrat Daniel Mr. DORGAN. I placed David ment. Patrick Moynihan of New York and Repub- Broder’s column in the RECORD because The way we are doing the debate, the lican John Warner of Virginia—remarked in dual track of both the education issue separate interviews, serious consideration of I agree with what he says. NATO ex- treaties and military alliances once was con- pansion is a big issue. It is an impor- and NATO enlargement, is not in- sidered what the Senate was for. tant issue. We all come to this issue tended at all to diminish either. It is No longer. President Clinton’s national se- with our points of view, and no one intended to raise up both of them and curity adviser, Sandy Berger, has pressed knows exactly what the future will the awareness and consciousness of the Majority Leader Trent Lott to get the NATO hold. But this country deserves a long, American people and give Senators an deal done before Clinton leaves Sunday on a full, thoughtful Senate debate on the opportunity to make their positions trip to Africa. When Warner and others said known on both these issues. We will do the matter should be delayed until the Sen- question of NATO expansion and then a ate has time for a full-scale debate, Lott re- vote. This President deserves a vote on them in a way where we will get a fused. He pointed out that a Senate delega- expansion as well. focus on the issue and have a good de- tion had joined Clinton at NATO summits in But when the vote comes, I have con- bate in the final analysis. Paris and Madrid last year (no sacrifice cluded I think the best course for this Mr. WARNER. Will the distinguished being too great for our solons) and that there country, the best course for the world leader yield? had been extensive committee hearings. for that matter, and the best course to Mr. LOTT. Yes, I will yield. Wrapping the three former Soviet sat- stimulate further reductions in the nu- Mr. WARNER. I anticipated that, and ellites in the warm embrace of NATO is an I think it is working out. I, in many re- appealing notion to many senators, notwith- clear threat for this world, is to vote standing the acknowledgment by advocates ‘‘no’’ on this particular plan for NATO spects, wish it was more in block that the Czech Republic and Hungary have a expansion. pieces. Very substantive debate has long way to go to bring their military forces Mr. President, I yield the floor, and I taken place in the last 48 hours, plus up to NATO standards. As the date for ratifi- make a point of order that a quorum is the Armed Services Committee held a cation has approached, successive estimates not present. 3-hour hearing on the subject. So work of the costs to NATO have been shrinking The PRESIDING OFFICER. The is going on very conscientiously on magically, but the latest NATO estimate of clerk will call the roll. this subject. $1.5 billion over the next decade is barely Mr. LOTT. I thank the Senator from credible. The legislative clerk proceeded to The administration, in the person of Sec- call the roll. Virginia for his comment and his retary of State Madeleine Albright, has Mr. GREGG. Mr. President, I ask thoughts on this important issue. I steadfastly refused to say what happens next unanimous consent that the order for know he has a lot of reservations. That if NATO starts moving eastward toward the the quorum call be rescinded. has a real impact here with his knowl- border of Russia. ‘‘The door is open’’ to other The PRESIDING OFFICER. Without edge in the defense area, and we are countries with democratic governments and objection, it is so ordered. The Senator going to be listening to his remarks. free markets, Albright says. The administra- is recognized. There have been good speeches on tion is fighting an effort by Warner and oth- both sides. Senator SMITH from Oregon ers to place a moratorium on admission of Mr. GREGG. Mr. President, I ask additional countries until it is known how unanimous consent to speak as if in gave a magnificent speech this after- well the first recruits are assimilated. morning business for 10 minutes. noon, I thought one of the best I have Moynihan points out that if the Baltic The PRESIDING OFFICER. Without heard this year. countries of Latvia, Estonia and Lithuania, objection, it is so ordered. I think it is working, and we will which are panting for membership, are (The remarks of Mr. Gregg are print- have a focused debate when we get to- brought in, the United States and other sig- ed in today’s RECORD in ‘‘Morning Busi- ward the end of the final debate. natories will have a solemn obligation to de- ness.’’) Mr. President, as in morning busi- fend territory farther east than the western- Mr. GREGG. Mr. President, I make ness, I would like to take this moment most border of Russia. He points to a Rus- sian government strategy paper published the point of order a quorum is not also to talk a little bit about the other last December saying the expansion of NATO present. issue that is pending before the Senate inevitably means Russia will have to rely in- The PRESIDING OFFICER. The at this time. creasingly on nuclear weapons. clerk will call the roll. f Moynihan and Warner are far from alone in The legislative clerk proceeded to raising alarms about the effect of NATO en- call the roll. EDUCATION SAVINGS ACT FOR largement on U.S.-Russian relations. The Mr. LOTT. Mr. President, I ask unan- PUBLIC AND PRIVATE SCHOOLS Duma, Russia’s parliament, on Jan. 23 passed imous consent that the order for the Mr. LOTT. Mr. President, there is a a resolution calling NATO expansion the big- clear, strong majority in the Senate gest threat to Russia since the end of World quorum call be rescinded. War II. The Duma has blocked ratification of The PRESIDING OFFICER. Without who want to pass the Coverdell- the START II nuclear arms agreement objection, it is so ordered. Torricelli education savings account signed in 1993 and approved by the Senate Mr. LOTT. Mr. President, let me ob- bill. It is bipartisan; I want to empha- two years ago. serve, first, that I have had the oppor- size that. I believe every Republican is S2266 CONGRESSIONAL RECORD — SENATE March 19, 1998 going to be for ending the debate. They schools it might not happen, should we We need to find a way to get this bill are not dragging this out and having a allow that opportunity through the considered, amendments to be offered. full-fledged filibuster. I think there are taxing of bond activity? Maybe so. So I say here today—and we have just several Democrats who agree we should That is in this bill. sent notification to the Democratic get to the substance, too, and I hope we In short, this is one of the most im- leader—that we wish to make a full ef- are going to have a broad—and I be- portant pieces of consumer rights legis- fort once again to find a way to bring lieve we will—a majority will vote for lation that the Senate has considered it to a conclusion so we can consider this legislation when we get to final since the establishment of the Food education and education needs and edu- passage. And there is a reason for that. and Drug Administration, I believe. cation amendments. The legislation would benefit some 14 And it is being blocked systematically I have another proposal. Keep in million families who could use the edu- and cynically by those who do not mind, last week I proposed that the cation savings accounts. I have said it want, apparently, middle-income or Democrats should have a substitute before and I emphasize it again, I think low-income families to have the same bill, or could have, if they want to do one of the problems with elementary choice in education that is available to it, and put anything they want to in it, and secondary education in America all wealthy families. debate it as long as they want to, and today is there is no opportunity for fi- My family did not have that option, have a vote; and then we would go to nancial assistance, no way to save your couldn’t afford it. I went to public the Coverdell-Torricelli bill. Well, for own money to help your children a lit- schools all the way—proud of it. I good reasons, I presume, we could not tle bit. It does not have to be $2,000 a think they did a good job. But I don’t get an agreement on a substitute. year; it could be $200 a year or less. But believe my kids got as good a public So then we said, well, what about if that money then could be accumulated education as I did, and they went to we have a couple of amendments on and get the tax benefits and then used public schools all the way, too. But I each side that are education related, to buy uniforms or books or computers still think we should have other and we have time to debate the amend- or to choose another school. choices. ments offered by Democrats, time to So I think this is a major step in the I think it is ironic—no; maybe it is offer the two amendments offered by right direction in dealing with the tragic that in the midst of this fili- Republicans? That did not work and, problems of elementary and secondary buster, of this delay, the administra- once again, partially because there education in America. tion is today boasting of its record on were more than two on each side; there This bill would help 1 million stu- school violence, that we have safer were a number of them. dents with tax relief on their State pre- schools. I do not know where they have Well, I have a new proposal. I have a paid-tuition plans. This is a good idea. been. The schools are the most dan- way to bring us to a conclusion that I We ought to allow people to be able to gerous in America today than they believe everybody would feel is fair and pay in advance for the impact of tui- have ever been in history, probably. we could get a good debate on edu- tion when they go to college. This is I mean, I used to worry about chew- cation. I understand that there are something that is being advocated very ing gum in school. Now kids bring guns some 14 amendments that have been aggressively by a number of Democrats to school and shoot their classmates. filed that relate to education—edu- as well as Republicans. You have to go through a metal detec- cation. Five of them are Republican; This bill would benefit a million tor to get into schools. Where are these nine of them are Democrat. workers, including 250 graduate stu- programs that have been helping with Now, there are some others that have dents, whose employers would be better that? I don’t see them. But it is a curi- been filed that do not relate to edu- able to provide education assistance for ous gesture, to me, to wring your hands cation—clearly do not relate to edu- them. Shouldn’t we encourage that? about the violence in classrooms while cation. So I propose here this afternoon Shouldn’t we encourage employers to you block the exits so that children that we say, OK, we are going to have help their good workers who want to cannot escape from unsafe drug-ridden agreement that those 14 education better themselves to advance their edu- schools. That is what this would help amendments that have been filed can cation? Of course we should, and this do. be offered, debated for an hour each, would do that in the best possible way. I think it is just pretense, really, to and voted on—five Republican, nine Now, Mr. President, this day is day 6 deplore violence on the playground and Democrat—but they have to be the of the delay and obstruction against in the school corridors while you force education amendments; and then we go getting this education reform. Is it all those endangered boys and girls to stay on to final passage based on whatever we need to do? No. Is it a major step in right where they are. And that is the the condition of the package is at that the right direction? You betcha. We fact of the opposition that we see to point. ought to do this. And we should not the Coverdell-Torricelli bill, because Now, if we have to go to cloture—and keep delaying it and dragging it out. we are trying to give them some op- when we get cloture —we still could For 6 days some Members of this tions. We are telling our children, oh, have 30 hours of debate after that, and body have taken turns standing in the yeah, we want more classrooms and amendments would be offered or could schoolhouse door barring the way to a whatnot, but they have to stay in the be offered. We probably would take at quality education for children who, back of the education bus and they least 14 or 15 hours or more post-clo- quite often, need it the most. have to stay in these dangerous ture. So I would like to—I am not ask- I want to thank all the Senators who schools. ing for an answer now, but I am sug- have been involved on both sides of the So if the classrooms are smaller, gesting it to our colleagues on both aisle who have been willing to put smaller classes, but still dangerous and sides of the aisle, and for the children aside partisan considerations and do infected with drugs, you are not get- of America, that maybe this is a way what is right for American families. ting a good quality education, and be- to make sure that Senators are able to It would also benefit hard-pressed lo- cause the teacher can’t pass a test him- offer amendments to education in addi- calities that could build new public self. I do not think we have done what tion to what is in this bill, and also to schools with the bill’s $3 billion in tax- we need to do. be able to offer ones that might not be exempt private activity bonds. This is Do we trust the parents or not? That germane post-cloture. in there because of the continued ef- is one of the questions here. I do not This is a way to get it done. And we forts of Senator GRAHAM of Florida, trust a Federal bureaucrat in Washing- could set up a process of when we Senator FEINSTEIN who worked on it, ton to make the right decision for the would begin on those amendments. We and Senator COVERDELL who was for children in my hometown schools. I would have the 14 hours of debate, the this. Some of us have some reserva- trust the parents and the teachers and votes would occur, and we could bring tions about this. I am one of them. But the administrators at the local level to this to a conclusion, and I believe that if you think about it, if Disney World make the right decision for their chil- instead of having a talkathon, we would like to help build another school dren. would have an A+ bill, a bill with input in the Orlando area and this would help So I think that this is something from Members on both sides of the that happen, because in the public that we should bring to a conclusion. aisle, a bill that would help education March 19, 1998 CONGRESSIONAL RECORD — SENATE S2267 in America. And I think the American amendments. Would we be then pre- capable of being the leader of either people would say we have not just been cluding some of our Democratic Sen- one of the parties on this floor. But I talking about what we are going to do, ators who had no idea that somehow, if would suggest that while the minority but they would then see the truth, that you had not filed, you would not be leader, the Democratic leader, is con- we really do want to be a positive force protected? sidering this, that the majority leader, in improving education in America and And then of course there is the ques- the Republican leader, consider wheth- we found a way to do it. tion of just an hour. Some amendments er or not there is any benefit in trying And it would add this additional ben- are going to take a little longer than to put a time limit on this now. efit. It would allow us to bring it to a an hour; some will not. Suggesting time limits on amend- conclusion within a foreseeable period So there are a lot of questions here ments is like waving red flags. I can of time. It would allow us then to focus that obviously we can work through, name 10 Senators on your side, if I said on having debates only on NATO en- but to throw the gauntlet down, to say that we are going to give their State largement, and get that to a focused we are going to file a cloture motion to an additional $70 billion but there will debate and a focused conclusion, and deny anybody the opportunity to offer be a time limit on debate, they would then to go perhaps—even next week, if amendments even though they are cer- automatically disagree. So I think we could get all this lined up—to a vote tainly related to education, has been there are sort of red flags. on one or both of the supplemental ap- our objection all along. And far be it from me to get in the propriations bills. So I certainly would like to work middle of this negotiation, but I com- Now, that would be a week and a half with the majority leader. The best way pliment the Republican leader on what of production that would stagger the to do it is to vitiate the cloture vote so seems to be at least a slight change of minds of men, particularly when it we can talk through this, rather than approach in terms of what I think is an comes to education. But we would have to insist on cloture and then negotiate, equitable way in which to deal on this done education, we would have done claiming to have some real interest in floor. But people like me, who strongly NATO enlargement, and we would have finding some resolution here. But I cer- support the Coverdell bill, absent done supplemental bills that will affect tainly applaud the majority leader for something worked out like this—I the defense of our country because of his approach, his constructive way in must say to my friend from Georgia, I the funds for Bosnia and the Persian which he wants to find a way to deal am with you, but I ain’t with you when Gulf, for IMF, and for disasters. We with the schedule. I have to give up my rights on every- could do all that in 1 week. I think it I yield to my colleague from Dela- thing else that comes down the pike— would be a monumental accomplish- ware, who also has taken a great inter- as strongly as I support this. ment. And I invite the Democratic est in this issue, for any comment that So I compliment, again, the Repub- leader to respond and to think about he might have. lican leader. I hope he and the Demo- this offer, because I think it is a fair Mr. BIDEN. Mr. President, if I may, I cratic leader can work this out, be- one that a lot of Senators would feel will be brief. cause I would like very much to get to good about. The PRESIDING OFFICER. The Sen- this debate and get to voting on it. With that, I would be glad to yield ator from Delaware. And, to be very selfish about it, I would since I see Senator DASCHLE is here. Mr. BIDEN. I, too, applaud the ma- also like to clear it out of the way so The PRESIDING OFFICER. The dis- jority leader for this new offer. I am we can focus on NATO in a coherent tinguished Democratic leader is recog- one who supports the Coverdell amend- way. nized. ment. I am one of those folks who I see the Presiding Officer shaking Mr. DASCHLE. I thank the President voted against vouchers, although I am his head. He has a great interest in the for his recognition. entertaining whether or not I vote for NATO issue as well, I know. There are And I thank the majority leader for a test project, as I view it, in the Dis- a number of Members who do. It would his innovative new offer. This comes as trict. I have not made up my mind on be nice to have a coherent, consistent news. We have not had the opportunity that yet. But I clearly support the ap- debate on that issue, because it is of to consider his new offer because this is proach of my friend from Georgia. such consequence. the first time I have heard it. But, As a matter of fact, we had a little I thank both leaders for allowing me clearly, he is beginning to address the bit of a disagreement in our caucus to get into what is not usually some- concern that Democrats have raised over that issue on the substance. But thing I speak to, and I appreciate their about the way in which this bill is there is one thing there is not any dis- efforts. going to be debated. agreement in our caucus about, and Mr. LOTT. Mr. President, if I could None of us has proposed that some- that is whether or not—and I suspect respond to a couple things that the how we want to keep from getting to there would not be if the roles were re- Senator from Delaware just said. final passage on this legislation. That versed for the majority leader—wheth- The PRESIDING OFFICER. The dis- isn’t our objective. We have already er or not we would sign on to—even tinguished majority leader is recog- noted the President is going to veto those who support the Coverdell legis- nized. this bill, so we do not have to stop it lation—whether or not we would sign Mr. LOTT. The timeframe is—you from passing through the Senate. So on to a position that would effectively know, we do not have to lock into that. that isn’t our intent. require us to give up our rights to offer I just thought, since you are talking Our intent all along has been simply amendments, because although I am about 14 amendments here, that an to have a good debate, to offer our ver- for this bill, it may be there would be hour probably would be enough. If we sion of what we ought to be doing in a crime bill on the floor or there would needed more on some of them, less on education, to offer our version to sug- be a foreign policy initiative on the some others, we could work through gest how we might spend one and a half floor that, once I agreed to give up that that. But part of the reason why I was billion dollars as we look at the array right procedurally, I would have put having hopes that we could, after about of challenges that we face. myself in the permanent minority and 20 hours or so, finish this up and then Now, the majority leader has pro- not being able to exercise the rights I get to a focused-on debate on only posed a plan that I have not yet had a have under the rules of the Senate. And NATO enlargement and get to a vote chance to consider, but two questions I am absolutely confident the Senator on that—that was part of the thinking. arise immediately, and one is whether from Mississippi would take the same But the time could be flexible. Gen- or not this proposal would allow us to position were he on the opposite side of erally speaking, I think some of these deal with pre-educational years; that the numbers at this time, the numbers amendments probably could be debated is, the childhood development ques- being in the minority. for less than an hour maybe. tions that we are facing as some of our But I, for one, believe that we should So you understand I will not ask this amendments deal directly with early try to work out an overall arrange- now, just so you can think about it, be- childhood development. ment relative to making sure we deal tween now and when we get to the clo- We have not indicated to any of our with education-related issues. I ture vote I could ask consent notwith- colleagues that they had to file their would—and far be it from me; I am not standing rule XXII, regardless of the S2268 CONGRESSIONAL RECORD — SENATE March 19, 1998 outcome of the 5:15 votes, the following ing amendments that may not be ger- Now, the 9 Democrat amendments amendments be in order postcloture. mane. We all understand the germane- that have been offered that the leader One of the reasons that is also impor- ness rule. is referring to, of the 14, 3 are tax, 6 are tant, because some amendments might We all understand, many of us, why nontax, but they are all education re- still be in order postcloture that would we left the House of Representatives to lated, which I think is appropriate. I do not be on this list, and that we would come to the U.S. Senate. We came to think there has to be some order. I work on how much time we have on the U.S. Senate because we recognize think I even heard in some nature that each amendment, and that there would the glory of the wisdom associated context referred to by the Senator be nine education-related amendments with the right of every Senator, and from Delaware, Minnesota and others offered by the minority side, filed that is understood each and every time on your side. There ought to be some amendments 2020, 2026 through 2028, we come to the floor. discipline. 2031 through 2033, 2040 and 2041; and five The distinguished majority leader I also say that while it is technically education-related amendments offered has made quite a point of citing the a tax bill, it is a minimalist tax bill. It by the majority side, 2021, 2022, 2024 Coverdell bill as a bill related to edu- is a large vehicle, a large vehicle. through 2025, and 2035. cation. It is also related to taxes. This I think that there has been an ex- That is a suggestion of a UC we could is a tax bill, as well. This is a piece of tended effort to try to come to a mean- ask for, or if we could work out some legislation changing the Tax Code. ingful balance between your side and other unanimous consent agreement on Just so everybody understands what our side on this measure. I pointed out education-related amendments. I know the majority leader is suggesting here, yesterday that the legislation in our the Senator was talking about maybe he is saying we don’t want you to con- package was 80 percent designed by having a crime bill. I know when he is sider this a tax bill. The majority re- your side of the aisle—Senator GRAHAM having a crime bill he would rather not fuses to allow the minority to consider of Florida, Senator BREAUX of Louisi- have to deal with a fisheries’ amend- this a tax bill on the Senate floor. We ana, Senator MOYNIHAN of New York ment. I understand the minority wants want you to insist and promise that and others. In the process of framing you will never offer a tax amendment to make sure they are not precluded this, we tried to take the admonish- on a tax bill that comes to the Senate from offering amendments important ment you gave last year, which was we floor. It is an education bill, so go to them. I think he also understands wanted to go through the process, the ahead and offer an education amend- the majority has some rights and de- Finance Committee. We have done ment, but don’t you dare offer a tax sires not to have to vote on amend- that, heard from both sides. There is amendment to a tax bill. We are not ments across the board, from one end heavy influence from both sides. We going to allow that. are simply trying to find a way to get of the spectrum to the other, when we Mr. President, I think that points out out of the filibuster, to get out of the are trying to get an education bill com- the fallacy of this whole matter and fourth filibuster, and get down to a dis- pleted that is very important to edu- the reason why my distinguished col- cussion about our different views on cation in America and children in league from Delaware made the point education. America, so we could then get to a very he did about the rights of the minority. I hope this last offer or suggestion important national policy issue, NATO How many tax bills will come to the that has been outlined, that you are enlargement, that I had the President Senate floor? How many opportunities hearing for the first time, might be the call about just last night. will the minority have to offer legiti- genesis of coming to an agreement of I am looking for a way to be fair so mate, relevant, tax amendments? how we can move on, in both of our we can consider education amendments I am very concerned again about pre- mutual interests, on making the Fed- and identify a way to bring it to an cluding the right of the minority. I was eral Government a good partner in fac- end. elected to represent 44 Democrats and ing the calamity that we have all Mr. BIDEN. Will the Senator yield? their rights every time we come to the talked about over the last couple of Mr. LOTT. I am happy to yield to the floor, regardless of the circumstance. I years in kindergarten and through high Senator. think all of our colleagues recognize school and the costs of higher edu- Mr. BIDEN. I understand his desire the importance of protecting those cation. but I don’t understand his right. I un- rights. Whether it is tax, whether it is I did want to make those points. derstand the desire not to deal with all education, whether it is a matter relat- Mr. WARNER. Mr. President, I see those amendments but I never thought ed to something of great import to our several Members on the floor desiring that was a right—although it would be colleagues, we have to protect that to continue what I regard as a very nice if it were a right—and while he is right. It doesn’t matter the issue. What good debate on NATO. The Senator doing this, if he succeeds, if he could matters is the right. The right must be from Michigan is present and I am per- also clear the Helms-Biden foreign re- protected. That is really what these fectly willing to yield the floor should lations material of abortion amend- questions are all about. he desire to seek recognition. It would ments and declare them out of order as I yield the floor. be my hope, Mr. President, that follow- well. That is somehow stopped up. Mr. COVERDELL. Mr. President, ing the Senator from Michigan, the Mr. LOTT. I thought he agreed we first, I know the minority leader will Senator from Virginia be recognized, would have that issue on the United appreciate concerns on our side in the and I make this unanimous consent re- Nations arrears, State Department re- midst of the fourth filibuster over this. quest for the purpose of giving re- authorization, instead of having it on We already had to fight and break fili- marks. the emergency bill or the IMF; wasn’t buster just to get to this point. The en- The PRESIDING OFFICER. Without that the discussion? tire exercise on this legislation has re- objection, it is so ordered. Mr. BIDEN. The Senator is of the lated to one filibuster after the other, f view it shouldn’t be on anything, so I so obviously it has raised concerns that hope when he settles this he can settle the amendment process will be used as PROTOCOLS TO THE NORTH AT- that too so we can fund the United Na- another extension of the filibuster. I LANTIC TREATY OF 1949 ON AC- tions and have the IMF moneys, too. think that is a fair concern on our side. CESSION OF POLAND, HUNGARY, Mr. LOTT. I am sure we will work on I have to say to the minority leader AND THE CZECH REPUBLIC that together. that even on your side I have heard nu- The Senate continued with consider- The PRESIDING OFFICER (Mr. merous expressions that there should ation of the treaty. SMITH of Oregon). The distinguished be a discipline about the education pro- The PRESIDING OFFICER. The Sen- Democratic leader is recognized. posal and the debate should be about ator from Michigan. Mr. DASCHLE. I commend the Sen- education, not broad tax policy. I have Mr. ABRAHAM. Might I inquire of ator from Delaware for making a very a tax relief bill that pushes millions of the Senator from Alaska if he needed important point. This is the U.S. Sen- people into the 15 percent tax bracket. to introduce amendments? ate. I daresay there is not a Senator in I have not introduced it here and Mr. STEVENS. The Senator is very this body who hasn’t chosen to use a won’t. I don’t think it should be. I generous. I am awaiting two amend- legislative vehicle for purposes of offer- think it should be an education debate. ments I have drafted that I wish to put March 19, 1998 CONGRESSIONAL RECORD — SENATE S2269 in. If I can get the time, I will do it less than three times since 1949, at no made tremendous progress in institu- today; if not, tomorrow. I was not sure time has there been any military con- tionalizing free government, free mar- we would be in tomorrow. I understand flict among member states, despite kets and a responsible military. now we probably will be. sharp and long histories of political dif- As for Hungary, Mr. President, the Mr. ABRAHAM. I appreciate the Sen- ferences between some. Hungarian people’s attachment to free- ator from Virginia yielding to speak to Shared commitment to well-ordered dom made them a constant thorn in me about the issue of enlarging NATO. liberty—to democratic politics, free the side of their Soviet oppressors. At Mr. President, I rise to express my markets and human rights—united the first their desire for freedom was beat- support for legislation expanding countries of NATO, in good times and en down with tanks, later it was al- NATO by admitting, at this time, the bad, until, eventually, they faced down lowed limited free play within the So- newly free nations of Poland, Hungary the forces of communism. viet empire. and the Czech Republic. It is my hope What is more, NATO remains the And the Hungarians made the most that we will act soon on the invitation only multilateral security organization of their limited freedom, working even extended to these countries at the Ma- capable of conducting effective mili- before the end of the cold war to lay drid Summit in 1997, and that this will tary operations that will protect west- the groundwork for free markets. Since be only the latest step in an ongoing ern security interests. the tearing down of the Berlin Wall the process bringing nations and peoples, Of course, Mr. President, we must be Hungarian people also have made great until recently suffering under com- careful about which countries we allow strides in building a freer, more open munist tyranny, into the community into NATO, as well as when and under and democratic nation. of free nations and into the sphere of what circumstances. But I believe it is By extending NATO membership to mutual security provided by NATO. in the interest of the United States, as these nations we will be showing our We should not forget, in my view, Mr. well as our European allies, to actively approval of the hard work they have President, that until less than 10 years assist European countries emerging done to institutionalize free govern- ago most of Asia and half of Europe, as from communist domination in their ment. well as vast stretches of the rest of the transition to free governments and free Of course, Mr. President, our first world, were held in the grip of totali- markets so that these countries may duty is to the American people. We tarian communism. eventually qualify for NATO member- must defend their security and protect When the Berlin Wall finally came ship. their pocketbooks. down it marked a new era in our his- We must extend our hand to peoples But I think we should keep in mind tory; it marked the greatest explosion now emerging from the long night of that increasing openness in central and in human freedom ever witnessed on communist dictatorship. We cannot af- eastern Europe will benefit us both in this earth. terms of security and in terms of eco- Ronald Reagan’s victory in the cold ford to let them despair and turn, or be nomics. Free peoples with free markets war rescued millions of Eastern Euro- dragged, back into the dark. make for good neighbors and good part- peans, and Russians, from decades of This makes it particularly appro- enslavery. We owe it to him, to our- priate that we begin the process of ners in profitable trade. It is my hope that we will build on selves and to our children to solidify NATO expansion by inviting into its the freedoms and the relationships al- those gains by bringing the emerging membership the newly free nations of ready established with and within east- democracies of eastern Europe fully Poland, Hungary and the Czech Repub- into the community of free nations. lic. Each of these countries has suf- ern Europe for the good of everyone in- And membership in NATO is a crucial fered greviously from war and from volved. I know that a number of my col- part of that process. Marxist dictatorship. Each has worked Since its inception immediately fol- long and hard to establish its independ- leagues are concerned that the process lowing World War II, NATO has ence, the freedom of its people and its of expanding NATO not come at too brought free nations together for mu- markets. high a price for the American taxpayer. tual defense and thereby fostered mu- We should not forget that it was As a Senator who has consistently tual understanding and trade. Lech Walesa’s Solidarity movement worked for tax cuts, I share this con- Because the world remains a dan- that paved the way for the breakdown cern. But I must observe that the legis- gerous place even after the successful of the Soviet Empire by refusing to be lation under consideration includes conclusion of the cold war, there re- cowed by the Communist authorities. provisions limiting expenditures mains a place for NATO. Because the The people of Poland, strong in their through the Partnership for Peace and free world has expanded in the after- faith, exhibited a courage few of us that it guarantees no country entry math of the cold war, NATO also must would wish to be called upon to match. into NATO. expand. As a people they demanded freedom Each country will have to show that Recent events in the Balkans, the of worship. As a people, they demanded it has established democratic politics, Middle East, East Asia, and Africa real workers rights in the form of free, free markets, civilian leadership of po- show that the world remains a dan- non-party unions. lice and military forces and trans- gerous place, and that the United As a people they faced down their parent military budgets to gain en- States must continue to prepare itself communist oppressors and now are trance. for conflict in any part of the globe. building a free, open and democratic Each country will have to show its Conflicts in the Balkans are particu- society. ability and willingness to abide by larly disturbing because of their prox- The people of Poland have held free NATO’s rules, to implement infrastruc- imity to our west European allies and and open elections, established free ture development and other activities because of its potential to spread con- markets and worked hard to establish to make it a positive asset to NATO in flict to other parts of Europe. a strong, loyal, civilian-controlled its defensive mission, and to contribute To my mind, Mr. President, it also military. Like few nations on earth, to its own security and that of its points up the need for greater coopera- they have embraced their new-found NATO neighbors. tion and integration in Europe. The freedom and deserve our support. All told, Mr. President, I believe that structures set up by the NATO alliance The Czech Republic, while still part the provisions of this arrangement can in my view provide unique opportuni- of the hybrid nation of Czechoslovakia, help us build on the success of the ties to foster peace and cooperation was the last free country to be dragged NATO alliance. throughout Europe. History shows that behind the Iron Curtain. And its people I am convinced that we as a nation the kinds of cooperation that made tried on several occasions, most nota- have a duty to promote democracy and NATO so successful at defending the bly in the spring of 1968, to regain their free markets, wherever they can take free world from Soviet communism freedom. They finally succeeded root, just as I am convinced that it is also can breed peaceful cooperation through a silent and bloodless revolu- in our interest as a nation to do so. among member states. tion. When such forces coalesce, we should I believe it is significant that, while Under the playwright and statesman seize the opportunity, as I urge my col- NATO has expanded its membership no Vaclav Havel, the Czech people have leagues to do with this legislation. S2270 CONGRESSIONAL RECORD — SENATE March 19, 1998 Mr. President, I realize that there are land, the Czeck Republic and Hungary by States, has been an unqualified success. The some among us who have grown con- ratifying the NATO enlargement treaty and prospect of NATO membership has given cerned about the prospect of enlarging inviting them to join us in NATO. Central European countries a strong incen- American leadership on NATO enlarge- tive to cooperate with the alliance, strength- NATO. But to me, Mr. President, it ment is important to our security as well as en civilian control of the military, and re- seems that this decision is a pretty to the security of Eastern Europe. solve longstanding border disputes. All of clear one. It has always been the mis- At the Madrid Summit last July, President these advance U.S. interests. It would be a sion of the United States to support Clinton and the other NATO leaders unani- mistake to abandon a policy that is clearly free people, to support the efforts of mously decided to invite Poland, Hungary achieving its objectives. people seeking freedom throughout the and the Czech Republic to become members Third, some argue that NATO enlargement of the alliance, culminating years of efforts has hurt or will hurt cooperation with Rus- globe. In Central and Eastern Europe, by these countries to meet NATO’s strict sia, or may even strengthen the hand of that was a primary mission of America entry criteria. Last week, under the biparti- hard-line Russian nationalists. This has not for nearly one-half century. It seems to san leadership of Sen. Jesse Helms, North been borne out by the facts. Since the NATO me that, upon the successful comple- Carolina Republican, and Sen. Joe Biden, enlargement process began, President Boris tion of the cold war, it would only be Delaware Democrat, the Senate Foreign Re- Yeltsin has been re-elected and many re- natural that the nations that came lations Committee overwhelmingly endorsed formers have been elevated within the Rus- into the world of free countries should NATO accession legislation by a vote of 16– sian government. Mr. Yeltsin pledged at the 1997 Helsinki summit to press for ratification have the opportunity to extend their 2. I hope the full Senate will follow suit without delay. of START II and to pursue a START III ac- participation in the free world to be Two world wars began in Europe, and strife cord. The Duma also ratified the Chemical part of the NATO alliance. It was in- in Bosnia continues today. Expanding NATO Weapons Convention and President Yeltsin deed the NATO alliance, more than to include Poland, Hungary and the Czech signed the NATO-Russia Founding Act, cre- anything, that allowed them to find Republic will help ensure that new threats, ating a new, constructive relationshp with their freedom. It seems only natural such as ethnic struggles and state-sponsored the West. terrorism, will be kept in check. The world has changed. The debate over that they would wish to be part of that During the half-century that NATO has NATO expansion cannot be recast as an ex- alliance. And it would seem only natu- helped guarantee peace in Europe, it has tension of the Cold War. I believe imposing a ral that we should allow them to be added new members three times, including mandated pause in NATO’s engagement part of that alliance as soon as they Germany, Greece, Turkey and Spain. Each would appear to give Russia a veto over are able to meet the various entry re- addition made the Alliance stronger and in- NATO’s internal decisions, contrary of quirements that we have established. creased its military capability. Affirming its NATO’s stated policy, and would strengthen military importance of NATO enlargement, Russia extremists by enabling them to claim To me, that is the natural outgrowth of that their scare-tactic objections swayed the the successful completion of the cold 60 top retired U.S. officers—including Colin Powell and four other former chairmen of world’s most powerful military alliance. war. the Joint Chiefs of Staff, nine former service And last, some skeptics would rather allow So, for those reasons, Mr. President, branch chiefs, and top combat leaders such the European Union (EU) to take the lead in I intend to support the enlargement of as Gen. Norman Schwarzkopf—recently sig- building Central and Eastern Europe’s eco- NATO. I believe that Poland, Hungary, naled their support of NATO enlargement. nomic and security structure. But with due and the Czech Republic are deserving Their statement emphasized that the admis- respect, NATO, not the EU, is the corner- sion of Poland, Hungary and the Czech Re- stone of European security, which is vital to allies and deserving members. I look our own. forward to seeing the successful com- public will enhance NATO’s ability to deter or defend against security challenges of the As the Senate considers this legislation to pletion of this legislation during the future. allow Poland, Hungary and the Czech Repub- next week. What these military leaders and many lic to complete their journey from com- Mr. WARNER. Again, I express my other Americans understand is that no free munist dictatorship to NATO membership, appreciation to the Senator from Dela- nation has ever initiated a war against an- we should consider the words of Czech Presi- dent Vaclav Havel: ware, the distinguished ranking mem- other democracy. Integrating the military, economic and political structures of Eu- ‘‘The Alliance should urgently remind ber of the Foreign Relations Commit- itself that it is first and fore-most an instru- tee, for his very conscientious atten- rope’s newest stable democracies into the NATO alliance will help ensure that this re- ment of democracy intended to defend mutu- tion, along with Chairman HELMS, to mains true in the 21st century. ally held and created political and spiritual this debate. Let me take the opportunity to address values. It must see itself not as a pact of na- I pick up again in expressing the four major concerns that critics have raised tions against a more or less obvious enemy, grounds for my opposition to the ad- in this debate. First, some senators have en- but as a guarantor of EuroAmerican civiliza- gaged in a last-minute effort to postpone tion and thus as a pillar of global security.’’ mission of these three nations, cer- NATO protected Western Europe as it re- tainly at this time. I also am going to consideration of the NATO accession legisla- tion. But members of both parties and both built its war-torn political and economic sys- place in the RECORD a series of docu- houses of Congress have already thoroughly tems. With Senate approval of NATO en- ments today because I think it is im- examined questions surrounding NATO en- largement, it can, and should, provide simi- portant that those following this de- largement. The Senate Foreign Relations lar security to our allies in Central and East- bate from a distance have access to the Committee alone has held eight hearings ern Europe as they re-enter the community with more than 37 witnesses, resulting in 550 of free nations. RECORD of the proceedings of the U.S. This is no time to postpone or delay ac- pages of testimony. The case has been made: Senate, and that the views of a number tion. It is time to act so that other NATO NATO enlargement is in the interest of the of persons that I and others think are member countries can move ahead with rati- United States. It is time to make it a re- worthy of attention be placed therein. fication knowing the United States is lead- ality. I ask unanimous consent that a state- Second, other critics in the Senate have ing the way. ment that appeared in the Washington suggested placing conditions on NATO ex- Mr. WARNER. Mr. President, it is Times on March 18 by Robert Dole, the pansion, thereby ‘‘freezing’’ enlargement for clearly an endorsement of the present former majority leader of the U.S. Sen- an arbitrary number of years. Like the ad- legislation by one of our most revered ate, entitled ‘‘NATO Test of U.S. Lead- ministration, I oppose any effort in the Sen- and respected former Senators, whose ate to mandate an artificial pause in the ership’’ be printed in the RECORD. wartime record and whose record in process. Such a move would send the wrong many other endeavors places abso- There being no objection, the article message to countries in both the East and was ordered to be printed in the the West, closing the door on current and po- lutely no question about his knowledge RECORD, as follows: tential new allies—and perhaps tying the and background to make such an im- [From the Washington Times, Mar. 18, 1998] hands of a future president. portant contribution as embraced in Furthermore, freezing NATO’s membership NATO TEST OF U.S. LEADERSHIP that article. would create a destabilizing new dividing Likewise, Mr. President, appearing in (By Bob Dole) line in Europe. Currently, non-member Euro- today’s Washington Post under the For decades, the United States urged com- pean nations cooperate extensively with byline of Jim Hoagland, an article en- munist leaders to ‘‘tear down the Wall.’’ NATO through the Partnership for Peace titled ‘‘Foreign Policy by Impulse.’’ I Within the past 10 years, people of Eastern Program. But if nations believe the ultimate ask unanimous consent that it be Europe have embraced liberty and under- goal of NATO membership is unattainable, taken major reforms in their economies and any incentive to continue democratic reform printed in the RECORD. governments. Now the United States Senate will be substantially diminished. There being no objection, the article should take the next step toward ensuring The alliance’s open door commitment, was ordered to be printed in the freedom and democracy for the people of Po- which has been supported by the United RECORD, as follows: March 19, 1998 CONGRESSIONAL RECORD — SENATE S2271 [From the Washington Post] when it is to be unveiled at a 50th anniver- the former Soviet Union. Twelve na- FOREIGN POLICY BY IMPULSE sary summit in Washington. When Secretary tions have publicly expressed a desire (By Jim Hoagland) of State Madeleine Albright recently said in to join the current 16 that comprise Brussels that NATO would evolve into ‘‘a The U.S. Senate is moving in haste toward NATO. force for peace for the Middle East to Central As I said yesterday—and I don’t de- a climactic vote on NATO expansion, a for- Africa,’’ European foreign ministers quickly eign policy initiative that defines the Clin- signaled opposition to such a radical expan- sire to be dramatic—I do believe this ton administration’s approach to the world sion of the alliances’s geographical area of replaces, symbolically, the Iron Cur- as one of strategic promiscuity and impulse. responsibility. tain that was established in the late The Senate should not join in that approach. And Albright’s deputy, Strobe Talbott, forties, which faced west, with now an Foreign policy is the grand abstraction of surprised some European ambassadors to iron ring of nations that face east to American presidents. They strive to bargain Washington last week when he gave a ring- Russia. That causes this Senator a big, or not at all, on the world stage. They ing endorsement to the possibility of even- feel more free there than they do at home to great deal of concern. I have previously tual Russian membership in NATO, an idea expressed my concerns here. I did so dream, to emote, to rise or fall on principled that divides NATO governments and which positions, or to stab others in the back at a the administration has not highlighted for again today in the Senate Armed Serv- time of their choosing. the Senate. ices Committee, and I was joined in my More able to ignore the niggling daily bar- ‘‘I regard Russia as a peaceful democratic observations on the floor yesterday by gains that blur and bend their domestic poli- state that is undergoing one of the most ar- my colleague, the senior Senator from cies, presidents treat foreign policy as the duous transitions in history,’’ Talbott said New York, who pointed out that such realm in which they express their essence in response to a question asked at a sympo- and personality most directly. an iron ring, extending from the Bal- sium at the British Embassy. He said Clinton tics down to the Black Sea, would, in Think in a word, or two, of our recent strongly supported the view that ‘‘no emerg- presidents and U.S. foreign policy in their ing democracy should be excluded because of effect, take a present part of Russia day: Johnson’s word would be overreaching. size, geopolitical situation or historical ex- and place it behind that iron ring. I Nixon, paranoid. Carter, delusionally trust- perience. That goes for very small states, refer my colleagues to the remarks of ing. Reagan, sunnily simplistic. Bush, pru- such as the Baltics, and it goes for the very the senior Senator from New York of dent technician. largest, that is for Russia.’’ This is a mes- yesterday. NATO expansion is the Clintonites’ most sage that Clinton has given Boris Yeltsin in In evaluating this issue of NATO ex- vaunted contribution to diplomacy, and they their private meetings, Talbott emphasized. characteristically assert they can have it all, pansion, I start from the basic premise ‘‘This is a classic case of never saying that NATO is, first and foremost, a when they want, without paying any price. never,’’ Talbott continued. ‘‘If the day comes Do it, the president told the Senate leader- when this happens, it will be a very different military alliance. It is not a political ship Monday in a letter asking for an imme- Russia, a very different Europe and a very club, it is not an economic club; it is a diate vote. Others will later clean up messy different NATO.’’ military alliance to which members strategic details such as the mission an ex- How different, and in what ways, is worth have in the past—I repeat, in the past— panded NATO will have and who else may discussing before the fact. The Clinton ad- been invited because they were able to join. ministration has not taken seriously its re- make a positive contribution to the Sound familiar? Yes, in part because all sponsibility to think through the con- overall security of Europe and to the administrations advance this argument: sequences of its NATO initiative and to ex- Trust us. This will turn out all right. Rus- plain those consequences to the American goals of NATO as laid down by the sians will learn that NATO expansion is good people. The Senate needs an extended de- founding fathers some nearly 50 years for them. The French will not be able to use bate, not an immediate vote. ago. expansion to dilute U.S. influence over Eu- Mr. WARNER. Mr. President, I will Nations should be invited into NATO rope, try as they may. This will cost Amer- refer in my remarks to a Congressional only if there is a compelling military ican taxpayers only a penny or two a day. need for additional members, and only And so on, on a number of debatable points Budget Office report released March 17, addressed to the chairman of the For- if those additional members will make that I think will work out quite differently a positive military contribution to the than the administration claims. eign Relations Committee, regarding But there is also a familiarity of style here the Congressional Budget Office cost alliance. That case, in my opinion, has distinctive to this president and those clos- estimate, a new cost estimate, on yet to be made persuasively with re- est to him. And why not? The all-embracing, NATO expansion as proposed by the un- gard to Poland, Hungary, or the Czech frantic, gargantuan life-style that has al- derlying treaty. Republic. NATO has been, is, and will lowed those other affairs of state—the Mr. President, I ask unanimous con- remain, with its present membership, Lewinsky, Willey, Jones allegations—to be- sent that this report be printed in the the most valuable security alliance in come the talk of the world (justifiably or the history of the United States, if not otherwise) also surfaces in major policy mat- RECORD at the conclusion of my re- ters. The Senate vote on NATO is not occur- marks. the history of the world. It has ful- ring in a vacuum. The PRESIDING OFFICER. Without filled, it is continuing to fulfill, and Life is not neatly compartmentalized. The objection, it is so ordered. will fulfill the vital role of spearhead- paranoia and conspiracy that enveloped the (See Exhibit 1.) ing U.S. leadership on the European Nixon White House manifested itself in the Mr. WARNER. Now, Mr. President, as continent. bombing of Hanoi and the overthrow of Chil- we all know, the President has an- Twice in this century American ean President Salvador Allende as well as in nounced his goal of welcoming these troops, in World War I and World War Watergate. The Great Society and Vietnam first three nations into NATO to mark II, have been called to leave our shores were not conflicting impulses for Lyndon and go to Europe to bring about the Johnson, as is often assumed, but different the alliance’s 50th anniversary, sched- sides of the same overreaching coin. The uled for April 4 of next year. Several cessation of hostilities and to instill lack of perspective and deliberation apparent weeks ago, the President submitted to stability. That is NATO’s principal rea- in the handling of NATO expansion is appar- the Senate the Protocol to the North son for being, for which we now have ent elsewhere in the Clinton White House. Atlantic Treaty on the Accession of that military presence in Europe On the issue at hand, the White House is Poland, Hungary, and the Czech Repub- today. It justifies an American voice urging the Senate to amend the NATO char- lic. For the United States, under the on the continent, which history dic- ter to admit the Czech Republic, Hungary ‘‘advise and consent clause’’ of our tates is essential to maintain stability. and Poland. Majority Leader Trent Lott re- sponded to Clinton’s letter by saying he Constitution, two-thirds of this body My concern is, that U.S. military pres- would schedule a vote in a few days, despite must give their concurrence to the ence could be jeopardized by the acces- appeals from 16 senators for more, and more President’s request. Likewise, the new sion of these three nations at this focused, discussion. admissions must be agreed to by the time. My reason for expressing this Clinton opposes any more debate, even other 15 nations in NATO. Presently, concern goes back in the history of this though he has not addressed the American Canada, Denmark and Norway have, in Chamber, when the distinguished ma- public on this historic step and even though their respective Parliaments, ratified jority leader at one time, Senator there is no consensus in the United States or Mansfield, beginning I think in about within the 16-member alliance on the strate- these Protocols. gic mission of an expanded NATO or on its If the Senate agrees, this would be 1966, came to the floor repeatedly over future membership. the first of perhaps many expansion a period of 7 over 8 years urging col- A new ‘‘strategic concept’’ for NATO will rounds to include the nations of Cen- leagues to bring down the number of not be publicly reached until April 1999, tral Europe and some of the nations of U.S. troops in Europe. And, indeed, in S2272 CONGRESSIONAL RECORD — SENATE March 19, 1998 that period we saw the beginning of a a substantially different set of condi- ment of our troops. But I will bring one force reduction, where today there is tions, particularly, in my judgment, as to mind, and that is Somalia. the phasedown from 300,000 to 100,000. it relates to Russia. I was strongly in favor of President Harry Truman, distinguished Presi- I have great doubts that this burden Bush deploying our forces in the cause, dent of the United States—and, in my of proof can be met in such a way as to not so much because of the vital secu- judgment, one of the greatest in the prove that NATO expansion now is rity interests of the United States, but history of this country—cited NATO ‘‘vital’’ to America’s national security for our troops to allow the measure of and the Marshall Plan as the two interests, present or future. For nearly protection needed to distribute food greatest achievements of his Presi- 50 years, the NATO alliance unques- and medicine and other benefits to a dency. NATO has unquestionably sur- tionably has been vital to our security starving people, people who are de- passed all of the expectations that interests. To me, ‘‘vital’’ means that prived of food as a consequence of a se- President Truman had, and those asso- we will put—I want to speak very slow- ries of droughts and civil strife in that ciated with him, in founding this his- ly and clearly—that we will put at risk country. toric alliance. life and limb of the young men and Senator LEVIN and I wrote a very de- There is an old axiom: ‘‘If something women who proudly wear the uniforms tailed report on behalf of the Armed has worked well, is working well, what of the United States Armed Forces, our Services Committee, which traces the is the compelling reason to try and fix troops, as they are called upon to pro- entire history of that operation from it?’’ The burden of proof, in my judg- tect any member nation of NATO. We the first day that the troops landed ment, is on those who now want to make that commitment today to the under President Bush as Commander in change this great alliance. other 15. Now, if adopted, this treaty Chief to the troops withdrawing under American leadership has been, is, and pushes the boundary of NATO another President Clinton. And that mission always will be essential to Europe. His- 400 miles towards Russia, taking on went through a series of trans- tory has proven that principle beyond hundreds and hundreds of square miles formations, transformations that were any reasonable doubt. Now a heavy of new territory. That is what we must not carefully observed by the Senate burden falls on those who support ex- focus on—our young men and women or, indeed, the Congress. pansion—indeed, the Commander in who wear the uniforms and who will be There came a time when our mission Chief of our Nation, the President—to deployed for our contribution to the involved what we would call ‘‘nation carry that burden through and to place NATO force. building,’’ and our troops were de- before the American people a convinc- Up front, this administration must ployed in a combat role to try and ing argument that this alliance must explain to Americans that any country achieve the goal of nation building. be substantially changed by the admis- joining NATO will be extended protec- And we all know the tragedy that en- sion of three new nations. And I pre- tion of article V of the NATO treaty. sued when one of those missions re- dict, without any hesitation, the begin- That article V states: ‘‘An armed at- sulted in the death of 17 or 18 and the ning of accessions periodically of other tack against one or more of them in wounding seriously of 70-plus other nations, perhaps to the point where 12 Europe or North America shall be con- brave soldiers. We recall very well the would join with the current 16. sidered an attack against them all’’— absolute tragic abuse of the body of It is for that reason that I have filed which means we put at risk our people one of those brave Americans. This with the Senate an amendment to re- who are sent as a part of the overall country rebelled. This Chamber rose up quire a moratorium of 3 years on fu- NATO force, along with their com- in contempt of what we saw before us, ture accessions, should it be the judg- rades, soldiers and sailors and airmen and the call was to bring them home— ment of this body by a vote of two- of the other nations. bring them home right now. And I felt thirds of the Senators to accede these This is the most solemn commitment that the decision having been made by three nations under this treaty. If this our Nation can make, particularly as one President followed up by a second first round is approved, then I want in NATO is in a transition phase now, per- President to deploy those troops, the the resolution of ratification accom- forming a vital mission in Bosnia, a decision as to when to bring them panying this protocol a limitation on mission that was never envisioned home should be made pursuant to the this Nation not to involve itself in the under the original charter with clarity. Constitution of the United States by accession of further nations for a pe- I think the charter conceivably can be the Commander in Chief, the President. riod of 3 years. I do that because we interpreted, as it has been, to embrace I was among those Senators who said don’t know what the costs are of this this type of mission. What about the let the President make the decision first round. I will allude specifically to next mission, and the next mission, rather than the Congress as to when to that momentarily. We don’t know how and the next mission? What about bor- bring them home. But the Congress re- quickly these three new nations can der disputes between the two nations, flected the sentiment across America. bring themselves up in terms of mili- three nations, and their neighboring I point this out to illustrate what I tary interoperability with NATO forces countries? What about ethnic strife? call the limited staying power of this today, in terms of other military What about religious strife? country today. It is far different from standards, and how long it will take All of these problems are now mani- what we saw in World War II, far dif- them to be a positive, full partner with festing themselves throughout this ferent from Korea. But we saw the NATO and not be what I would regard area as these nations struggle to ac- manifestations beginning in Vietnam— as a user of NATO security in that pe- cede to democracy in the former War- the limitation on the staying power to riod of time until they can bring them- saw Pact and other places in the world, continue to accept casualties and selves up militarily to NATO stand- and it is a NATO force that is looked losses by this country unless it is ards. to, to come to the rescue. Bosnia is a manifestly clear that those losses, be it And, most importantly, given the case in point. their death or injury, are clearly iden- significance of this treaty, why should It is incumbent on the administra- tified with the vital security interests we not let an important decision, tion next year and the year after to of the United States of America. I fore- should that be the result of two-thirds face up to the request of some nine warn that with this expansion, our of our Members, for accession of these other nations at the moment who ex- troops committed to NATO someday three nations—why should we not pa- press a desire to join. If Congress is to could be involved in missions which, in tiently wait 3 years so that the next concur now, it will have to justify to my judgment, would be very, very hard President of the United States, who- the American people, first, the exten- to justify as being in the vital security ever that may be, can have a voice to sion of article V to these three nations, interests of this country, and at that express his or her view that the vital followed by perhaps as many as nine point in time our Nation might focus security interests of this country dic- nations in the years to come. on the continued contributions, be it tate further accessions, or that the Let’s step back. In the 19 years that financial or manpower, to NATO. And pause should continue for a period of I have been privileged to serve in this underlying that is the question of the time? I think we owe no less to our Institution, I have participated in all possibility of once again America’s next President, who will be faced with of the debates regarding the deploy- presence in Europe, through its NATO March 19, 1998 CONGRESSIONAL RECORD — SENATE S2273 association, being challenged by the And Kaliningrad is a port, but if you meaning of what it means to be an American public. look at the Kola Peninsula at the top American. That is what Europe did. I see the Senator from Delaware. I of that map, which is considerably They refused to make a solemn com- will be happy to take a question at any more armed, including with nukes, mitment to Poland. Then when they time. than Kaliningrad is, it happens to have did make it, they broke it. Mr. MOYNIHAN addressed the Chair. shared for the last 40 years a border What I find an incredible leap here is, The PRESIDING OFFICER. The Sen- with a NATO country called Norway, what commitment are we making in ator from New York. about the same length of mileage. NATO that I hope every Senator on Mr. MOYNIHAN. Mr. President, ear- Now, look, this is a bit of a red her- this floor would not make absent Po- lier my friend and colleague, the Sen- ring, as we used to say when you prac- land being part of NATO? Is someone ator from West Virginia, described the ticed law or in law school. What is this suggesting to me tomorrow—and this ring we were putting into Europe. I ob- ring? We are not talking about Latvia, is not a possibility realistically, but if serve that within that ring there would Lithuania, and Estonia or Belarus or Russia decided to put 40 divisions back be a portion of the Russian nation. Ukraine or Romania now. That is not in Poland and the Senator from Or- Here is the map. part of the debate today. egon, presiding, stood up and said, ‘‘We Mr. WARNER. From the Baltics Now, if my friends are saying anyone should respond,’’ what do you think down to the Black Sea, which face east. who votes for expanding NATO to in- would happen on this floor? Well, I Mr. MOYNIHAN. This is Kaliningrad clude Poland, the Czech Republic, and hope to God what would happen on this right here, cut off from Russia by Lith- Hungary are tying this noose around floor would not be what happened in uania, Belarus, and Latvia. I would like to make a point that the the Russian neck, this iron ring, well, the British Parliament, what happened Russians have already asked for pas- then, I don’t quite get it. But if they in the French legislature, what hap- sage through Latvia and have not re- are saying that if you vote for these pened in the other capitals of Europe. I ceived it. three you must be saying you are going hope we would not say, ‘‘Oh, my good- One point about the proposal of the to vote for all 12 or 15 or whatever, ness, no; maybe they have a historic Senator from Virginia to have a pause well, then, that is not how it works. right. Oh, my goodness, let’s think before further expansion. Last Decem- That is a fight for another day. about it. We will be making a commit- ber, the Woodrow Wilson National Cen- But I find this notion that ment that is awful. Oh, my goodness, ter for Scholars had a conference on Kaliningrad, which was awarded, if you this is a dilemma.’’ NATO enlargement, and there was just will, to Russia after World War II, that What is the dilemma? What is the di- this one passage that struck me by a subsequent to that the Russians were lemma? Or Hungary. By the way, I hap- Finnish scholar Tiiu Pohl. She said, justified—they didn’t say this; I am pened to notice on the map, I don’t ‘‘In 1994, the Friedrich Ebert Stiftung saying this—that the Russians were know that anybody is talking about of Germany organized a study of the justified to assure that they could have Ukraine, including Ukraine. I don’t Russian military elite to find out access to this piece which was sepa- know that anybody is talking about whom they considered to be enemies of rated from their otherwise—we call Belarus, including Belarus. I don’t the state. The results of the research them the contiguous 48—separated know that anybody is talking about showed that Latvia was named most from their historic border, that they Slovakia, including Slovakia as being frequently, by 49 percent of the re- were justified in taking the freedom of members of NATO now or in the near spondents. Latvia was followed by Af- the Lithuanians so they could have ac- term. It seems to me they somehow sit ghanistan, Lithuania, and Estonia. cess, the Lithuanians are somehow out between that iron ring and that noble After Estonia came the United States.’’ of line because they will, based on emerging democracy of Russia. Sir, we are walking into historical some notion of, apparently, religion or Look, I guess the thing that sort of ethnic and religious enmities. Catho- some just international pique of some got my goat a little bit here is that lics here, Orthodox here, and Lutheran kind, not allow Russian troops to Americans do not have staying power. here. We have no idea what we are get- march through their country and that What they are really talking about is ting into. makes them bad guys—the same troops the Senator’s generation and mine, Mr. I thank the Senator. that subjugated them for the last four President, that we do not have staying Mr. WARNER. Mr. President, I thank decades. I don’t find that a religious power. I will tell you about the staying my scholarly friend, the senior Senator concern. I do not understand how that power. The staying power of my from New York for his valuable con- somehow makes the Lithuanians a lit- friend’s generation was real, but it was tribution. I think the Senator’s point, tle bit shaky. These are the people who enviable because they didn’t have to if I might rephrase it, is those poten- for 40 years subjugated them, took doubt whether or not what they were tial disputes grounded in ancient civili- away their national identity. And now doing was saving the world. They zations and ancient religions can and just 7 or 8 short years after the wall is didn’t have to doubt whether or not do burst open today and result in con- down they are somehow the bad guys what they were doing was, in fact, lit- flict into which the Armed Forces can because they will not allow Russian di- erally preserving the freedom of their be dragged. What better example than visions to march from Kaliningrad to wives and children back home in the Bosnia. Moscow. Oh, my goodness. old U.S.A. They didn’t have to doubt Mr. MOYNIHAN. Under Article 5 of And the other argument I am finding that they were out there fighting one the North Atlantic Treaty, we would fascinating, the solemn commitment— of the most miserable SOBs in the his- march our troops right up the Volga. it is a solemn commitment—we make tory of mankind. Mr. WARNER. I thank my friend. if, in fact, we find ourselves saying But my generation went full of doubt Mr. BIDEN. Mr. President, I find this that another member can join, we and still went—and still went—never absolutely astounding. Are my friends make a solemn commitment to them once having the solace of knowing the suggesting that the Russians were jus- just as we did Germany, and the com- malarkey we were being fed about tified in marching into Latvia, Esto- parison is made between Poland and Vietnam approached the truth of what nia, and Lithuania and annexing them Somalia. We had no staying power in their generation was fed about Nazi in the name of preventing a ring from Vietnam and Somalia. I would respect- Germany and fascism in Europe. But surrounding them? What in Lord’s fully submit that Vietnam and Somalia they went. I don’t doubt the staying name are we talking about? No. 1. are not Central Europe; they are not power of the American people. I doubt No. 2. I have the map, and I am look- Poland; they are not Hungary. the wisdom of our leadership in the ing at the map. I am trying to figure Implicit in the statement is if, in places we have asked them to stay. But where the ring is. But let’s assume it is fact, tomorrow or the next day or the if this implies that if there were—and a ring. It seems to me, if it is a ring, it next year or the next decade someone there is no realistic prospect of this— is a ring of freedom, a ring of freedom invaded Poland again, we would, like but if there were an invasion of Poland that tolls out and says anybody who the French, stand there with our or Hungary or the Czech Republic, not wants to have it put on their finger can thumbs in our ears and not respond, a border dispute, an invasion, that we join and work it out, including Russia. then I say we really have lost the would not respond, that we would have S2274 CONGRESSIONAL RECORD — SENATE March 19, 1998 to think about it, that there is any know full well the turmoil on the home had already been conquered, Jews were substantive difference today—— front and the difficulty with which the already being slaughtered, and there Mr. WARNER. Mr. President, if I brave young men and women who were not a lot of people walking off might—— fought in that battle wearing the uni- this floor, or any other floor in this Mr. BIDEN. Between the invasion of form of the United States had to cope generation or any other generation, Warsaw and the invasion of a former with not only in battle in Nam but re- raising their hands to join. It was only East German city, Dresden, what is the grettably a battle of a different form at after Pearl Harbor. I don’t say that substantive difference? home. critically; I say that as an observation, Mr. WARNER. Mr. President, I would But I say to my friend, staying power a statement of history, historical fact. like to reply to the Senator. in this Senator’s mind is an important So, this notion that the staying Mr. BIDEN. I will yield in just 2 sec- point, and that is why I brought it up power in Somalia or even in the gulf onds. because we no longer have the attitude: should be equated to the staying power Mr. WARNER. Mr. President, it hap- ours is not to reason why, ours is but that would or would not exist in Po- pens to be my floor. to do or die. Every person in uniform land, the Czech Republic or Hungary, I Mr. BIDEN. I yield then. I am sorry. reasons today. I don’t suggest they think is comparing two different I thought the Senator yielded. question the orders, but they reason. things. I think the most appropriate Mr. WARNER. Go ahead. The people at home reason. They want comparison would be—and you may be Mr. BIDEN. It just confuses me. to know with clarity as to what the right, Senator, that there is no staying Mr. WARNER. Go ahead and finish mission is, and whether or not it is in power—but the staying power we would up. our vital security interests. have to defend Germany, the staying Mr. BIDEN. I am finished. It seems to I remind my good friend of the debate power that we would have to defend me this iron ring is no ring at all, the that took place on this floor before the Turkey, I will lay you out 8 to 5, you notion that Kaliningrad is somehow Persian Gulf war. It was my privilege take the bet, if you took a poll in the going to be isolated relating to expan- to have written the resolution author- United States of America and said you sion. It is already isolated because of izing the use of force in 1991, after must send your son or daughter to de- the place called Lithuania. The only President Bush had put in place, in the fend one of the two following countries, answer to the lack of isolation is Lith- gulf, 500,000 American troops, had Poland or Turkey, I will bet my col- uania limiting their sovereignty. That formed a coalition of 30-plus nations, league a year’s salary they will say is the only answer. There is none other. and we were ready to do battle with ‘‘Poland.’’ Nobody can get from Kaliningrad to Saddam Hussein, who had invaded Ku- I will bet you a year’s salary, and Russia through Poland. They are not wait and perpetrated acts of criminal that is all I have. I have no stocks, trying to get there that way. This is warfare that we had not seen for some bonds, debentures, outside income. I about Lithuania when you talk about period of time. will bet you my whole year’s salary. Kaliningrad. And the commitment Kuwait was aflame, the streets lit- You know I am right. As Barry Gold- being made to Poland and the Czech tered with the debris of war. In this water would say, ‘‘you know in your Republic and to Hungary, I hope we Chamber we had an excellent debate as heart I’m right.’’ would make whether or not there was a to whether or not we would allow the So, if there is no staying power for NATO to which they would join. President of the United States to use Poland there sure in heck is none for Mr. WARNER addressed the Chair. force by the men and women already in Turkey. The PRESIDING OFFICER. The Sen- place to repel that invasion. It went on Mr. WARNER. Mr. President, I ator from Virginia. for 21⁄2 days. And by a mere five votes, brought this up because this Senator Mr. WARNER. I say in a very calm only a five-vote margin, did this Cham- feels differently. I think the American way, I listened carefully to my col- ber agree with that resolution. How people in their heart of hearts want to league. I take to heart what he has well I remember that event. go to the defense of human beings said. And I think it is very important. Mr. BIDEN. Will the Senator yield wherever they are in trouble in the I don’t question his generation in Viet- for a short question? world, irrespective of race, color or nam. It was my privilege to be in the Mr. WARNER. Yes. creed. But they must apply a standard Pentagon at that point in time with Mr. BIDEN. As calmly as I can say it, because it is their sons and daughters the Department of the Navy. I went out I guess the point I am trying to make who go, and that standard should al- across the country, spoke at the cam- is, it seems to me we should compare ways be: Is that deployment and risk of puses, watched the extreme objection apples and apples and oranges and or- life in the vital security interests of by his generation and, in hindsight, anges. Does the Senator believe there our Nation and/or our allies? The there was a lot of merit to that objec- is any more or less support on the part NATO treaty, as it has been drafted tion. of the American people to defend Dres- and utilized these nearly 50 years, has I remember very well Secretary of den than there is Warsaw? To defend had clarity on that point. We have now Defense Melvin Laird, under whom I Budapest than there is Florence? To gotten involved in an internal conflict served as Secretary of the Navy, say- defend any one of the countries that we in Bosnia, and we thank the dear Lord ing, we have to figure out how to with- are talking about, their cities, than that we have not experienced in that draw the United States from Vietnam. any other European city? It seems to ravaged nation the casualties that That is history. But in World War II, me that is the question. If we would could have come about. And the stay- during which I served a modest period not go, if we cannot get American stay- ing power of the American people, had at the very end, and my colleague from ing power to defend Poland, then I re- we experienced over the past year a New York, a somewhat longer period, spectfully suggest we cannot get Amer- considerable number of casualties—I our generation marched off under the ican staying power to defend Germany. am not certain what that staying old refrain, ‘‘Ours is not to reason why, I would think, in America, if you ask power would have been. I really am not ours is but to do or die.’’ We simply for a show of hands, so to speak, on a certain. But I want to make it very went, never questioned it. And as the question of whether we should defend clear it is the vital security interests Senator from Delaware said, there was anybody—but the reasonable compari- that should always underlie any de- greater clarity as to the enemy, the son was these NATO nations that are ployment. cause, and we had absolutely magnifi- seeking admission versus NATO na- I brought in Somalia because I was cent support on the home front. tions that are already in. To compare greatly disturbed by the debate. Some When I returned from Korea, then this to Iraq, with all due respect, is of my most respected colleagues said, serving in the Marines for a short pe- comparing very different things. ‘‘Bring them home tomorrow,’’ irre- riod of time, there was a marked dif- By the way, five votes were a close spective of the President’s, the Com- ference between the attitude in Amer- call. But in my father’s generation it mander in Chief’s prerogatives to de- ica for the returning veterans of Korea was one vote that allowed the draft. cide when to deploy and when to bring and the veterans of World War II. And The British had already been pushed troops back, absent the Congress of the then during the Vietnam war we all into the English Channel, all of Europe United States speaking through its March 19, 1998 CONGRESSIONAL RECORD — SENATE S2275 power of the purse. I think we should tell. What will be the U.S. share of this liferation of weapons of mass destruc- always defend that executive preroga- expansion bill? Will our current allies tion before we worried about changing tive. pay their fair share? As we evaluate an Alliance which is currently func- So my concern is just to raise the ar- these questions, we must keep in mind tioning without problems? ticle 5 commitment clearly, that ‘‘an a couple of facts: our European allies To continue as the leading nation in attack on one is an attack on all,’’ and have traditionally spent less on defense NATO, we must have the American away we go. And now, as we are broad- as a percentage of GDP than we have, people solidly behind our President, ening the basis for NATO military ac- and they are all currently in a period our committed troops. It was not so tions, as we have in Bosnia, to involve- of reducing their defense forces. long ago—back in the 1960s and 1970s— ment in a clear, historical conflict Is this a time when it is realistic for that Majority Leader Mike Mansfield rooted in the diversity of religions and us to assume that our allies will in- annually sponsored legislation calling ethnic differences, we have to be ever crease their defense spending for the for a reduction in the U.S. military so careful, as we add nations into the purpose of expanding the Alliance? The presence in Europe. Those debates con- NATO alliance. French have certainly made their posi- tinued into the 1980s during a peak of At the conclusion of this colloquy I tion clear on this issue. They simply the cold war. I fear we could see a re- would like to have printed in the will not increase their contributions to turn of these annual calls to reduce our RECORD, jointly with my distinguished NATO for the purpose of expansion. Ac- commitment to NATO if the American colleague from New York, one of the cording to French President Jacques people become disillusioned with an ex- most erudite pieces I have ever seen Chirac, ‘‘France does not intend to panded NATO. written on the debate we are now hav- raise its contribution to NATO because This nation will continue to engage ing, ‘‘Expanding NATO Would Be the of the cost of enlargement. We have in a comprehensive debate on this issue Most Fateful Error of American Policy done our own analysis and we con- over the years to come, but next week in the Entire Post-Cold-War Era,’’ by cluded that enlargement could be done the Senate will be asked to vote on George F. Kennan. I know my distin- at no additional cost, by re-directing NATO membership for Poland, Hun- guished colleague has a great deal of funds and making other savings.’’ This gary and the Czech Republic. The respect for the author of this article. is not the type of attitude we need American people must be convinced I have a number of serious concerns from our allies at a time when we are that the protection of these new NATO with the policy of NATO expansion contemplating a major new commit- member nations is worth the sacrifices that I would like to address today. ment, which will involve substantial of life and economy—in our ‘‘vital’’ se- Among these concerns are the impact costs. curity interest. If that case is not made, the staying of expansion on NATO’s military capa- I am also greatly concerned about power of the American people is sure to bilities; the cost of expansion to the the economic aspects of NATO expan- wane were a dispute to arise involving United States; the role expansion will sion. In my view, the greatest threat to the new NATO nations. And the sup- play in the economic competition cur- the nations of Central Europe today is port of the American people for NATO rently underway in Central Europe; the struggle for economic survival. itself, which has been the pillar of U.S. and the impact of expansion on U.S.- These nations are all competing for national security policy in Europe Russian relations. previous foreign investment as they since the end of World War II, could be Keeping in mind that NATO is fun- struggle to rebuild economies dev- threatened. That would be the greatest damentally a military alliance, we astated by decades of Communist rule. If we grant NATO membership to three tragedy of all. must ask this question—Will Poland, I am not willing to take that risk. I of these nations, those three will gain Hungary and the Czech Republic be will vote against ratification when the a tremendous advantage in this fierce able to contribute to the security of Senate is asked to cast its vote on the economic competition. They will be the Alliance, or will they be net con- resolution of ratification. sumers of security for the foreseeable able to advertise that foreign invest- I am going to momentarily conclude future? In other words, what’s in it for ment will be safe in their nation—it my remarks. But I want to cover the NATO? Even by its own estimates, will be protected by the NATO security important hearing of the Armed Serv- NATO is working with a ten-year time umbrella. What type of resentment will ices Committee today. We had former line for the cost of NATO expansion this breed between the NATO ‘‘haves’’ Secretary of Defense Perry; Ms. Susan which indicates NATO is planning on and ‘‘have-nots?’’ Will this encourage Eisenhower, the daughter of Colonel at least a decade of modernization ef- conflicts into which NATO will be obli- John Eisenhower, and the grand- forts before these three nations can gated to intervene on behalf of Poland, daughter of our distinguished former ‘‘pull their weight.’’ That’s a long time Hungary or the Czech Republic? Again, President; William Hyland, a man who to extend a security commitment with only time will tell. has had many, many years of profes- little or no ‘‘payback.’’ And what of the impact of NATO ex- sional association in foreign policy; We must also keep in mind that once pansion on U.S.-Russian relations? We and William Kristol, who is a noted these three are admitted to NATO—if all know that Russia is not happy with commentator on very many issues, par- indeed that does happen—there would the expansion policy. They have grudg- ticularly security issues. be 19 nations, not just the current 16, ingly accepted the first round, but will I want to read part of the testimony that must agree before NATO could act clearly be strenuously opposed to fu- given by Ms. Eisenhower. She recites on any issue. As we all know, NATO ture rounds which move NATO’s border an important part of contemporary his- acts only by consensus. The more na- even farther eastward. While I do not tory on this issue. tions that are added, the harder that believe that we should allow Russia to In 1991, a distinguished bi-partisan panel of consensus will be to achieve. If NATO dictate U.S. policy on issues which we 26 current and former government officials expands much further, we are in danger regard as vital to our national secu- offered recommendations for the post-Cold of turning this fine Alliance into a rity, I also do not believe that we War security environment in a booklet pub- ‘‘mini-U.N.,’’ where all action is re- should unnecessarily antagonize the lished by the Johns Hopkins Foreign Policy only nation with the nuclear capability Institute/SAIS. Titled, ‘‘The United States & duced to the lowest common denomina- NATO in an Undivided Europe,’’ the report tor. to destroy our nation. The Administra- outlined the remarkable series of changes What are the monetary costs in- tion readily admits that there is no that had recently taken place and focused on volved in expansion? Well, at this foreseeable military threat to Poland, NATO’s future role in assuring that ‘‘Europe point, it’s anyone’s guess. The cost es- Hungary and the Czech Republic. If is truly ’whole and free.’ ’’ The NATO alli- timates on NATO expansion have that is the case, what is the rush to ex- ance would require reform and downsizing to ranged from a low of $1.5 billion over 10 pand the Alliance? Wouldn’t it be more ‘‘a small, but militarily meaningful num- years (NATO estimate), to a high of important to the national security in- ber,’’ they said, along with the capability for a future ‘‘redeployment of U.S. combat $125 billion over the same time frame terests of the United States to first troops in the event of crisis.’’ But they as- CBO original estimate. I expect that deal with the Russians on issues such serted, ‘‘The Alliance should reject proposals the truth lies somewhere in between as the further reduction of nuclear to expand its membership by including east these two extremes—only time will weapons and the control of the pro- European nations.’’ S2276 CONGRESSIONAL RECORD — SENATE March 19, 1998 That is rather interesting. There is [From Newsday] and Estonia? Ukraine? Where to draw the another paragraph. EXPANDING NATO WOULD BE THE MOST FATE- line? And what effect will moving NATO’s Obviously such an extension of the Alli- FUL ERROR OF AMERICAN POLICY IN THE EN- boundaries next to Russia have on Russia’s ance’s area of responsibility would be per- TIRE POST-COLD-WAR ERA foreign policy and its attitude toward the ceived by the Soviets as threatening and as West? (By George F. Kennan) For instance, is it really a wise policy to a repudiation of Mikhail Gorbachev’s aim to The U.S. Senate seems poised to make that build a ‘‘common European home,’’ the jus- humiliate Russia, especially when doing so error. tification for his voluntary relinquishment provides no clear gain for U.S. policy. The In the next few weeks it is expected to ap- of the USSR’s previous hold on Eastern Eu- United States and its allies promised that prove an amendment to the NATO treaty rope. NATO’s borders would not be moved east- that would add Poland, Hungary, and the ward when Moscow agreed to the peaceful Then I skip to a final paragraph: Czech Republic to the defense alliance. It is unification of Germany. How can this action, ‘‘Among the twenty-six signatories potentially a mistake of historic propor- then, be justified? Is it right to say the were Senators Sam Nunn and Bill tions. promise need not hold because the USSR no Bradley, as well as Generals Andrew Despite the warning of Ambassador George longer exists and the West won the Cold Goodpastor and William Y. Smith. But Kennan, one of the most respected foreign- War? Russia simply isn’t in a position to the document was also signed by our policy thinkers of the century; despite the stop the West from strutting. current Secretary of Defense, William reality that there has been little substantive For instance, to what extent has the threat Cohen, along with Zbigniew Brzezinski, debate; despite the admission by many sen- of NATO expansion already contributed to a deterioration of relations with Russia? In Peter Rodman,’’—who spoke before a ators that the more they learn about the consequences of enlarging NATO, the more dealings with Iraq? In the Balkans? On the group here in the Senate yesterday and doubtful they become about its merits; de- critical issue of eliminating Russia’s weap- with whom I debated before the Coun- spite the widespread distrust of the adminis- ons of mass destruction—nuclear, chemical cil on Foreign Relations in New York tration’s estimate of what enlargement and biological? One of Russia’s top security City on Monday—‘‘Helmut Sonnenfeldt would actually cost American taxpayers; de- experts, Alexei Arbatov, who has cham- and Norm Augustine, all of whom have spite the lack of compelling national inter- pioned cooperation with the West, recently since done an about-face and are out- est, the Senate seems ready to plow ahead. wrote that, in Russia, NATO expansion is spoken advocates in favor of expanding Why? Part of the answer is that in this seen as a defeat for the policy of broad co- the alliance.’’ post-Cold War period, foreign policy has be- operation with the West. He said: ‘‘NATO ex- It is very interesting. In the course of come a second-level, even a third-level inter- pansion will plant a permanent seed of mis- this debate, I and others will point out est, in Washington. Nobody has been paying trust between the United States and Russia. It will worsen existing differences on every- where not more than 8 or 9 years ago that much attention. It is inconceivable that such a war-and-peace issue would have re- thing from nuclear arms control to policies there was serious opposition in many ceived so little attention during the Cold in Iraq and Iran. It will push Moscow into al- circles of Government to the very War. But now many senators admit they are liances with China, India and rogue regimes. thing that we are espousing in this just beginning to focus on this question. New And it will move America toward unilateral treaty. York’s Alfonse D’Amato said last week that actions, disregarding the interests and posi- I conclude by referring to an article the more he has learned about the issue the tions of other states.’’ in the New York Times, which I will more troubled he is about it. He no longer For instance, what happens if NATO takes ask unanimous consent to have printed sees it as an open-and-shut case. in just the three nations and then stops ex- in the RECORD of today’s colloquy. Oc- But there are many other reasons for the panding, as some senators have suggested. tober 21, 1997, the article was jointly Senate’s dogged march toward approval. One Won’t that result in a new division of Eu- is politics. There are organized ethnic inter- rope? Wouldn’t it be a tacit signal that those written by Warren Christopher, former not part of NATO are within a Russian Secretary of State, and William J. est groups lobbying for NATO enlargement, while those who oppose it cannot exert a sphere of influence? To counter that, will Perry, former Secretary of Defense, counterbalancing political force. Another is NATO be compelled to continue expanding who testified before us today. I will that the Clinton administration, led by Sec- east, right up to Russia’s borders? Would read a paragraph attributed to both. retary of State Madeleine Albright, has com- that move set Washington on a collision And what should the alliance do about mitted the nation’s prestige to enlarging course with the European members of NATO other countries seeking admission? It should NATO and many senator fear—falsely in our who strongly oppose further expansion? If it remain open to membership to all states of opinion—that it is too late to turn back now. is important to bring Poland, Hungary and the Partnership for Peace, subject to their Documents have been signed, promises have the Czech Republic into NATO now, why ability to meet the stringent requirements been made. But the U.S. Constitution re- can’t the same argument be made of Lithua- for admission. But no additional members quires that the Senate approve treaties by a nia, Latvia and Estonia? They, after all, bor- should be designated for admission until the two-thirds vote. More damaging than turn- der Russia. three countries now in the NATO queue are ing back now would be to move ahead arro- For instance, do the American people real- fully prepared to bear the responsibilities of gantly and blindly. ly understand that this is a treaty commit- membership and have been fully integrated Still another factor is a belief by some ment to defend these nations of Eastern Eu- into the alliance military and political that the only way to maintain the U.S. mili- rope as if an attack on any one of them is an structures. tary presence in Europe and bring stability attack on the mainland of the United Mr. President, Dr. Perry today im- to Eastern Europe’s new democracies is to States? And if the country is not absolutely plied that would take years. The NATO expand NATO’s security blanket there. They serious about such an obligation, as some cost report itself indicated that would believe the vacuum created by the fall of the fear, what does that do to the credibility of NATO and the United States? take years. That is the very reason Soviet Union must be filled by the West. And finally, another reason is the visceral anti- For instance, what will expansion cost? the that my distinguished colleague from administration recently estimated the total New York and I have put in our amend- Russian feeling that still exists in this coun- try, post-Cold War, * * * Soviet Union. The cost would be $1.5 billion. But only last year ment, as an insurance, should this body attitude is that the Russians can’t be trusted the estimate was $27 billion to $35 billion. go forward with this treaty and the and this will make it clear that the Iron Cur- Has the Senate asked how the administra- three accessions, that there be a period tain will never again be drawn across East- tion came to shrink its estimate 96 percent, of 3 years within which the United ern Europe. especially in light of the Congressional States of America can examine the Budget Office’s estimate of $125 billion? the THESE QUESTIONS MUST BE FACED Europeans have already indicated they will cost, examine the ability of new na- But while some of that thinking is expli- not share in the cost of expanding NATO. tions to measure up to NATO standards cable, it doesn’t stand up to the tough ques- And does it make any sense for the emerging and make a positive contribution to tions that must be asked about NATO expan- economies of the Eastern European states to the objectives of NATO. And I add, of sion: increase defense spending? Isn’t that the last course, I think the next President is For instance, if the purpose of post-Cold- thing their economies need? entitled to the strongest of voices on War foreign policy is to bring the former So- And, most important of all, if everybody the issue of further accessions. viet bloc nations into a united Europe, why agrees the goal is the long-term independ- Mr. President, I now ask unanimous do it through a military alliance instead of a ence, freedom and stability of the former So- consent the material to which I re- political-economic alliance designed for the viet bloc nations, isn’t the most important future of Europe, namely the European historical variable the success or failure of ferred be printed in the RECORD, and I Union? NATO, by its very nature if threaten- democracy in Russia? Indeed, isn’t that the yield the floor. ing to Russia. single most important foreign-policy ques- There being no objection, the mate- For instance, if NATO expands to include tion for the United States and its allies in rial was ordered to be printed in the these three countries, what is the next step? the coming years? And, if that is so, why RECORD, as follows: Romania and Slovenia? Lithuania, Latvia take any steps now that would undercut the March 19, 1998 CONGRESSIONAL RECORD — SENATE S2277 position of the pro-democracy forces in Rus- the flow of oil, terrorism, genocidal violence cerns of most countries of Eastern Europe sia and play into the hands of the and wars of aggression in other regions that and the former Soviet Union will be ad- ultranationalists and xenophobes? Russia, by threaten to create great disruption. dressed outside the context of NATO mem- almost all estimates, is in such bad military To deal with such threats, alliance mem- bership. But the alliance and the United shape now that it could not threaten its bers need to have a way to rapidly form mili- States must play a crucial role. Partnership neighbors for seven to 10 years. If things go tary coalitions that can accomplish goals be- for Peace should receive attention com- badly, there will be time to take steps to yond NATO territory. This concept is not parable to that accorded to enlargement. In protect Eastern Europe. But what is the new. Such a ‘‘coalition of the willing’’ made particular, the partnership should receive rush? Albright reassures us that the Rus- up the Implementation Force in Bosnia substantially more financing from alliance sians don’t really mind. Does anybody really under alliance command and control, and an- members. Partnership for Peace countries believe that is the case? other made up the war-fighting force in should be as capable of working with NATO Desert Storm, which drew heavily on alli- ONE ANSWER: WAIT UNTIL THEY JOIN THE EU as NATO members are. ance training and procedures. The alliance must also devote time, atten- If voting against NATO enlargement is too Such coalitions will include some—but not tion and resources to its relations with heavy a political lift, New York’s senior sen- necessarily all—NATO members, and will Ukraine, now formalized through the NATO- ator, Daniel Patrick Moynihan, has offered generally include non-members from the Ukraine Charter, and continue its strong an amendment that would delay NATO ex- Partnership for Peace program, the alli- support of regional military cooperation pansion until these nations first are voted in ance’s program of training the militaries of among partnership members. as members of the European Union. That is the former warsaw Pact. In both the Persian We well understand that some of the ideas a commonsense proposal, first suggested by a Gulf war and in Bosnia, the coalitions did we are advancing go beyond tradition. But to bipartisan group of foreign-policy experts in- not include NATO members alone. So the resist change because change entails risk is cluding former Sens. Sam Nunn and Howard distinction between full membership and not only short-sighted but also dangerous. Baker and retired Gen. Brent Scowcroft, the partnership promises to be less important in One thing is clear. Neither the American national security advisor to both Presidents the alliance of the future. public nor the citizenry of its allies will con- Gerald Ford and George Bush. Moynihan cor- The decision to use the alliance’s forces be- tinue to support an alliance—enlarged or rectly asks what is the need to rush into yond NATO territory would require a unani- unenlarged—that appears to focus on non- such an important and consequential deci- mous decision of its members, including the existent threats of aggression in Europe. For sion. United States. That is the answer to those NATO to succeed, it must develop the ability The answer to Moynihan’s question is sim- who fear that such troops might be deployed to respond to today’s security needs. ple: There is no reason to rush into expand- imprudently on far-flung missions to other Leadership requires vision. It also entails ing NATO. The U.S. Senate shouldn’t be act- continents. determination, persistence, and having the ing until it has a much better grasp of how Defense of members’ territory would re- courage of one’s convictions. George Mar- all those questions can be answered. main a solemn commitment of the Allies, of shall understood what it meant to lead. So course. But such territory is not now threat- must we. [From the New York Times, Oct. 21, 1997] ened, nor is it likely to be in the foreseeable future. EXHIBIT 1 NATO’S TRUE MISSION What should NATO do with, and about, the U.S. CONGRESS, (By Warren Christopher and William J. Russians? An evolution in the alliance’s CONGRESSIONAL BUDGET OFFICE, Perry) focus and forces from defense of territory to Washington, DC, March 17, 1998. Fifty years ago Secretary of State George defense of common interests would signal to Hon. JESSE HELMS, Marshall called upon the people of the Russian skeptics that NATO had moved be- Chairman, Committee on Foreign Relations, United States to contribute to the building yond its original purpose of containing Mos- U.S. Senate, of a new Europe ‘‘united in freedom, peace, cow. Moreover, Russian military leaders can Washington, DC. and prosperity.’’ Succeeding generations of well understand the alliance’s shift from the DEAR MR. CHAIRMAN: The Congressional Americans rallied in support of Marshall’s large static deployments of the cold war to Budget Office has prepared the enclosed cost vision, electing leaders who were committed smaller, more mobile forces. They are trying estimate for the Resolution of Ratification to fostering and maintaining the strongest to do the same in their own program of mili- of Treaty Document 104–36. possible ties between America and Europe’s tary reform. They have a strong incentive to If you wish further details on this esti- democracies, both old and new. carry out such reforms in cooperation with mate, we will be pleased to provide them. The most important expression of this other partners. The CBO staff contact is Jeannette Deshong. commitment has been the North Atlantic The NATO-Russia Founding Act, which Sincerely, Treaty Organization. And, we believe, NATO provides the framework for the new alliance JUNE E. O’NEILL, still has that central responsibility even and the new Russia to work together, is an Director. Enclosure. though the political and military cir- important step toward forging a productive relationship between the two. Putting the cumstances that prevail in Europe have CONGRESSIONAL BUDGET OFFICE COST ESTIMATE act’s political provisions into practice will changed. Resolution of Ratification of Treaty Document require responsible actions on both sides. It is true that the alliance has achieved its 105–36 (Protocols to the North Atlantic Trea- But the Founding Act’s military provisions original military mission, having deterred ty of 1949 on Accession of Poland, Hungary, are less problematic and more important. attack from the Warsaw Pact. But that was and the Czech Republic) They offer tangible benefits to both sides in never its only role. It was given that task in the short and long term. Summary: The resolution would ratify pro- the context of General Marshall’s much larg- The objective of these provisions should be tocols to the North Atlantic Treaty of 1949 er vision—of a democratic Europe committed permanent, institutionalized military rela- that would admit Poland, Hungary, and the to working together instead of against itself, tionships modeled on those forged in Bosnia, Czech Republic as members of the North At- with the unflagging involvement of the where NATO and Russian soldiers have lantic Treaty Organization (NATO). Expand- United States as the ultimate guarantor of served shoulder to shoulder. As has happened ing the alliance would require the United that spirit of cooperation. before in the alliance, such cooperation States to contribute additional funding for The United States must continue to play changes attitudes by creating shared posi- equipment or capabilities shared by mem- this role as democratic Europe itself en- tive experiences to supplant the memory of bers of NATO. CBO estimates that those larges, and this is why a Senate vote against dedicated antagonism. It also engages a crit- costs would initially be in the tens of mil- enlargement of NATO would be a major mis- ical constituency in the formation of the lions of dollars and would reach about $100 take. new Eurasian security order: the Russian million a year after four or five years. Ulti- But it is also time to move beyond the en- military. Practical cooperation dealing with mately, the United States and its NATO al- largement debate. Adding new members is real-world problems of mutual concern is lies have considerable discretion in how to not the only, or even the most important, more important than meetings and councils. implement the protocols and, therefore, in debate over the alliance’s future. A much And what should the alliance do about the costs that would be incurred. larger issue looms: What is the alliance’s other countries seeking admission? It should Estimated cost to the Federal Govern- purpose? remain open to membership to all states of ment: On December 16, 1997, the United The alliance needs to adapt its military the Partnership for Peace, subject to their States and the other parties to the North At- strategy to today’s reality: the danger to the ability to meet the stringent requirements lantic Treaty signed protocols to expand security of its members is not primarily po- for admission. But no additional members NATO to include three new members. Article tential aggression to their collective terri- should be designated for admission until the V of the treaty commits each nation to pro- tory, but threats to their collective interests three countries now in the NATO queue are vide assistance—including the use of armed beyond their territory. Shifting the alli- fully prepared to bear the responsibilities of force—to restore and maintain the security ance’s emphasis from defense of members’ membership and have been fully integrated of any threatened member. The protocols, if territory to defense of common interests is into the alliance military and political ratified, would extend full NATO member- the strategic imperative. structures. ship to Poland, Hungary and the Czech Re- These threats include the proliferation of What about the alliance’s relations with public including a security guarantee under weapons of mass destruction, disruption of other non-member states? The security con- Article V. S2278 CONGRESSIONAL RECORD — SENATE March 19, 1998 In addition to spending for special national the largest shares of the total. Average an- During that entire period of time, needs, NATO members contribute funds for nual costs to the United States over a 15- there was a line, a north-south line, equipment and facilities needed to accom- year period ranged from about $300 million through Central Europe: oppression plish common goals. NATO members share to $1.3 billion. However, some CBO prepared and dictatorship and economic stagna- the costs of the alliance’s spending for civil- that study, the SRB has provided clearer in- ian and military headquarters, the Airborne dications of how NATO would use its discre- tion to the east; freedom, security and Early Warning Force, various science and tion to implement the protocols. prosperity to the west. Not once in its public information programs, and the NATO Pay-as-you-go considerations: None. most powerful days did the Soviet Security Investment Program (SIP) that Intergovernmental and private-sector im- Union ever cross that line and not at covers common infrastructure projects, com- pact: Section 4 of the Unfunded Mandates all, incidentally—not once—during all munications and air defense systems. Overall Reform Act of 1995 excludes from the appli- those years did the Western powers totals for the commonly funded budgets are cation of that act any legislative provisions with their military force cross that that are necessary for the ratification or im- determined collectively, and individual con- line to the east. It was a shield, a cara- tributions are based on formulas for burden plementation of international treaty obliga- sharing. tions. CBO has determined that these proto- pace behind which freedom could de- Expanding the alliance would entail great- cols fit within that exclusion, because they velop. er costs for improving command, control, make the Czech Republic, Poland, and Hun- But the dream of that freedom was communications, logistics and infrastruc- gary parties to the North Atlantic Treaty of not limited to those within the organi- ture—primarily the activities covered under 1949. zation to the west of that line. It acti- SIP. The United States and its NATO allies, Estimate prepared by: Federal Costs: vated, it inspired men and women east however, would have considerable discretion Jeannette Deshong. Impact on State, Local, of the line to be like the people of the in how to implement the protocols and, and Tribal Governments: Pepper Santalucia. West, to join the people of the West, therefore, in the costs that would be in- Impact on the Private Sector: Eric Labs. curred. For example, standards for facilities, Estimate approved by: Paul N. Van de tremendously costly to many of them. equipment, and training cover a wide range. Water, Assistant Director for Budget Analy- When the people of Hungary at- Depending on what standards NATO sets, the sis. tempted to liberate themselves from budgetary consequences could vary substan- The PRESIDING OFFICER. The Sen- that Soviet tyranny, they were bru- tially. Nevertheless, NATO has provided ator from Washington. tally repressed by Soviet tanks. When some initial studies that lay out basic mili- Mr. GORTON. Mr. President, half a the people of the Czech Republic, in the tary requirements. beginning of those years, attempted At the December 1997 ministerial meetings, century ago this year there were giants NATO’s Senior Resource Board (SRB) pre- in the land. President Truman, fol- even a modest measure of freedom, sented cost estimates for expansion-related lowed by President Eisenhower, Sen- they were repressed by Soviet tanks, projects that would be eligible for common ator Vandenberg in this body, others and those tanks spent the better part funding. In that report, the SRB identified who first envisaged and passed the of half a century in Poland absolutely cost of $1.5 billion for the next ten years. As- Marshall plan to secure economic free- to ensure that the liberty-loving people suming that current rules for burden sharing dom and prosperity in Western Europe of Poland were not able to exercise would continue under the protocols, the and then to create the North Atlantic that liberty or to have a government United States would cover 25 percent of Treaty Organization to provide phys- that was truly their own. those costs, or approximately $40 million per Then wonder of wonders, in a very year. Similarly, the Department of Defense ical security behind which the nations (DoD) assumes that NATO funding will in- of Western Europe could build free and few short years, symbolized a little less crease gradually over the next four to five prosperous societies. Those giants were than a decade ago by the destruction of years with U.S. assessments for additional followed by dozens, perhaps hundreds, the Berlin Wall, those nations and oth- military costs reaching $36 million in 2002. of Members of this body who kept the ers became free nations. They began to CBO’s estimate includes an allowance of faith—my predecessor, Scoop Jackson, realize their aspirations, and in the $25 million a year for the likelihood that from the State of Washington; Presi- case of those three, each one, in a short U.S. costs would rise as NATO finalizes im- period of time of less than a decade, plementation plans, engineering surveys, and dents down through and including Ron- eligibility criteria for common funding. U.S. ald Reagan and George Bush. And I has become a functioning democracy, costs might also be higher if new member come to the floor today astounded at has made a major beginning in reform- countries face difficulties paying for infra- opposition to this extension and to any ing its armed services, has moved deci- structure or if military plans become more other extension to free nations, so as- sively in the direction of free markets ambitious. In addition, the United States is tounded that by comparison with those and has begun the long, long journey to likely to incur bilateral costs for expanded giants, I am reminded of Casius’ de- catch up with the West economically, exercises, training, and programs to incor- but catch up with the West in spirit it porate NATO compatible equipment into the scription of Julius Caesar in Shake- speare’s great play, when we are asked has. Central European militaries. CBO estimates What do those nations desire? They these costs would be low in the near-term to live up to his description of: desire the security that history has but could amount to $30 million to $45 mil- . . . we petty men lion a year after 2001 based on additional ex- Walk under his huge legs and peep about never given them, that their own inde- ercise costs for one brigade and two air To find ourselves dishonorable graves. pendent power has never given them. squadrons every year plus the cost of sub- Because of the vision of those men They desire to be a part of the West, sidies for weapons purchases by the new and those women and, for that matter, lock, stock and barrel, and they see the members. of the United States of America and essential element of being western to Thus, CBO estimates that the costs to the our allies in Western Europe, the North be members of the North Atlantic United States of expanding NATO would total about $100 million a year after a transi- Atlantic Treaty Organization became Treaty Organization. They know, they tion period of four or five years. Roughly 90 the most successful single defense or- have learned from history, that that percent of these costs would be charged to ganization, security organization, in membership, and that membership Defense Department accounts for operation the history of the world. Its ultimate alone, will ensure that they can con- and maintenance, and military construction. dreams came true both earlier and tinue the freedom which is still so The remaining 10 percent would accrue to more completely than any of its found- young in them and continue the move budget function 150, International Affairs. ers could possibly have imagined when toward prosperity and toward Western Previous CBO estimate: The CBO paper institutions, and that we, who not only The Costs of Expanding the NATO Alliance they put it together and brought the (March 1996) explored five different scenarios American people into it. spent trillions of dollars in preserving for extending the NATO security guarantee It was a treaty that joined together the free world through our armed serv- to four central European countries. The sce- not just allies in World War II, but ices, but hundreds of millions, billions narios ranged from a low-threat security en- joined those allies together with their of dollars in broadcasting to these vironment that called for minimal NATO re- principal enemies in World War II, Ger- countries the message of freedom and inforcement of Central Europe to a scenario many and Italy, in the feeling that if the, at least implicit and I think often assuming a resurgent Russian threat that re- they were together, the kind of break- explicit, promise that the day would quired the forward positioning of NATO down that took place in the years lead- come when they could be lock, stock troops in Central Europe. The cost estimates in that report focused ing up to 1914 and, again, up to 1939 and barrel a part of the West, are now on the total costs to all NATO members, in- would be much less likely to take asked by, hopefully, not much more cluding the new members who would bear place. than a handful of the Members in this March 19, 1998 CONGRESSIONAL RECORD — SENATE S2279 body, to reject them, to say that some- Again, to crush their aspirations, le- current strategic circumstances. Our how or another, there will be more se- gitimate aspirations, aspirations that moral obligation to these countries curity in a vacuum in Eastern and Cen- we have supported for more than half a was abundantly met by generations of tral Europe than there will be with the century, by an arbitrary statement Americans, who spent trillions of dol- very kind of precise line that the North that they will not be considered for lars to win the cold war. This decision Atlantic Treaty Organization drew so membership for a fixed period of time, should be about the next 50 years, not decisively and so successfully half a no matter how successful they are, no the last 50. century ago. matter how democratic they are, no For this reason, I ask unanimous But nothing, Mr. President, nothing matter how much they may be threat- consent that several editorials and ar- in the history of nations in this world ened by some future Russia in that pe- ticles about the impact of NATO ex- indicates that a vacuum filled by small riod of time, is perverse and wrong and, pansion be printed in the RECORD for and weak powers can possibly be sta- even more significant, dangerous to the the benefit of all Senators. ble, can possibly be the object of any- peace of Europe and to the peace of the There being no objection, the articles thing other than irredentist aspira- world. were ordered to be printed in the tions on the part of one of the two na- A bright line is a much greater con- RECORD, as follows: tions that throughout its history has tributor to peace than a vague set of [From the Washington Post, Mar. 19, 1998] been the most aggressive in destroying feelings or concerns or worries about FOREIGN POLICY BY IMPULSE the freedom of those countries. the least regressive elements in Rus- (By Jim Hoagland) Germany, now totally integrated sian society. Just as a democratic and into the West, no longer a threat, but The U.S. Senate is moving in haste toward a free-market Germany appropriately a climactic vote on NATO expansion, a for- no longer a threat to France because became a pillar of the North Atlantic eign policy initiative that defines the Clin- they are joined together, and is soon to Treaty Organization, so at some future ton administration’s approach to the world be no longer a threat to Poland or to date could a secure and stable and as one of strategic promiscuity and impulse. Hungary or to the Czech Republic, be- democratic and free-market Russia. The Senate should not join in that approach. cause they will be joined together. I think that day is a long way off, Foreign policy is the grand abstraction of The case for NATO expansion is sim- American presidents. They strive to bargain much farther than I would like. But ply overwhelming. It is stunning to me big, or not at all, on the world stage. They until that day, to say that others who that we are so much as debating its de- feel more free there than they do at home to have met those qualifications, who sirability in this body and stunning to dream, to emote, to rise or fall on principled me that essentially the only reason for have had to live through occupation positions, or to stab others in the back at a time of their choosing. opposition to it is that the most trucu- and repression from that country, should be left on their own flies in the More able to ignore the niggling daily bar- lent element left in Russia, its Duma, gains that blur and bend their domestic poli- dominated by former Communists, face of all of the lessons of history that we have learned since the end of World cies, presidents treat foreign policy as the those portions of its leadership that realm in which they express their essence are most unwilling to give up what War II. and personality most directly. they have had previously, most desir- So, Mr. President, I believe that we Think in a word, or two, of our recent ous to restore the status quo ante-1989, should reject soundly the Warner-Moy- presidents and U.S. foreign policy in their will be offended if these countries are nihan pause proposal and enthusiasti- day: Johnson’s word would be overreaching. Nixon, paranoid. Carter, delusionally trust- brought into alliance with the United cally and overwhelmingly adopt the resolution of ratification that we have ing. Reagan, sunnily simplistic. Bush, pru- States, the United Kingdom, France, dent technician. Germany and the other members of the before us. The cold war resulted in a victory for NATO expansion is the Clintonites’ most North Atlantic Treaty Organization. vaunted contribution to diplomacy, and they Mr. President, that is the best reason the ideals of the United States and its characteristically assert they can have it all, to join those countries with us. Far Western allies. And it should be con- when they want, without paying any price. better to do it when there is no imme- solidated by joining with it those who Do it, the president told the Senate leader- diate threat from the East than when share those ideals, those who fought ship Monday in a letter asking for an imme- there is, when, I can assure you, the for those ideals, often to their very diate vote. Others will later clean up messy great detriment over the course of the strategic details such as the mission an ex- kind of opposition you have heard here panded NATO will have and who else may today would be much louder than it is last century. The position taken by my distin- join. today. Sound familiar? Yes, in part because all I think it is appropriate to go beyond guished friend from Delaware is totally administrations advance this argument: the naming of these three nations. One and entirely correct. I congratulate Trust us. This will turn out all right. Rus- of the most principled actions in Amer- him for it. I am convinced that we sians will learn that NATO expansion is good ican diplomatic history, in my view, should go forward boldly into the fu- for them. The French will not be able to use was the absolute refusal for more than ture with the greatest degree of con- expansion to dilute U.S. influence over Eu- half a century on the part of the fidence in the correctness of our cause rope, try as they may. This will cost Amer- United States to recognize the Soviet and only in that fashion will we be ican taxpayers only a penny or two a day. worthy of our predecessors in this body And so on, on a number of debatable points conquest of the three Baltic republics. that I think will work out quite differently We, and almost we alone, continued to who created the North Atlantic Treaty than the administration claims. recognize their right to independence, Organization. But there is also a familiarity of style here and one can certainly make the propo- Mr. SMITH of New Hampshire. Mr. distinctive to this president and those clos- sition that it was the desire and the President, I rise to request that my est to him. And why not? The all-embracing, movement for independence in those colleagues in the Senate conduct delib- frantic, gargantuan lifestyle that has al- three countries that was the imme- erative and thorough debate on NATO lowed those other affairs of state—the diate and proximate cause of the col- expansion before the expected vote Lewinsky, Willey, Jones allegations—to be- come the talk of the world (justifiably or lapse of the Soviet Union itself. next week. Many questions remain regarding otherwise) also surfaces in major policy mat- I believe, Mr. President—I believe ters. The Senate vote on NATO is not occur- firmly—that any nation that adopts se- cost, strategic objective and military ring in a vacuum. cure and democratic institutions, a requirements of the proposed expan- Life is not neatly compartmentalized. The free-market approach to its economy sion. If NATO enlargement makes paranoia and conspiracy that enveloped the and a Western-oriented means of de- sense, it will make more sense the Nixon White House manifested itself in the fense, has the right seriously to be con- more it is discussed. We should not cas- bombing of Hanoi and the overthrow of Chil- sidered in this part of Europe for mem- ually rush through debate in the Sen- ean President Salvador Allende as well as in bership in the North Atlantic Treaty ate. Watergate. The Great Society and Vietnam This should not be a sentimental de- were not conflicting impulses for Lyndon Organization. Personally, I believe that Johnson, as is often assumed, but different both Slovenia and Estonia have al- cision about our historic relationship sides of the same overreaching coin. The ready met those qualifications. Other with Europe, but a hard-nosed decision lack of perspective and deliberation apparent nations have not yet, though most of about extending a military guarantee in the handling of NATO expansion is appar- them strive in that direction. to a precise piece of territory under ent elsewhere in the Clinton White House. S2280 CONGRESSIONAL RECORD — SENATE March 19, 1998 On the issue at hand, the White House is ‘‘This is basic, hard-nosed American for- sobering exercise. Relations between Poland urging the Senate to amend the NATO char- eign policy here,’’ Smith told The New York and neighboring Belarus, already tense, are ter to admit the Czech Republic, Hungary Times as he explained why he and his col- rapidly deteriorating. Belarus recently re- and Poland. Majority Leader Trent Lott re- leagues are seeking to delay a vote, which called its ambassador from Warsaw and has sponded to Clinton’s letter by saying he was expected in the next few days, and force banned Polish priests from entering the would schedule a vote in a few days, despite an extended public debate on the issue. ‘‘It country. President Alexander Lukashenko appeals from 16 senators for more, and more deserves that attention,’’ he added. ominously accuses the Polish minority in focused, discussion. Some of the unforeseen consequences of a Belarus’s western provinces of disloyalty. Clinton opposes any more debate, even rush to judgment on NATO expansion are Hungary has troubled relations with three though he has not addressed the American spelled out on page 40 by Ted Galen Car- of its neighbors—Romania, Slovakia and public on this historic step and even though penter, vice president for defense and foreign Serbia. Slovakia’s prime minister continu- there is no consensus in the United States or policy studies at the libertarian Cato Insti- ously slanders the large Hungarian minority within the 16-member alliance on the strate- tute. According to Galen, ‘‘three lethal in his country and late last year proposed a gic mission of an expanded NATO or on its booby traps await the United States if NATO population transfer that would send tens of future membership. expansion goes forward. ‘‘They include po- thousands of ethnic Hungarians back to Hun- A new ‘‘strategic concept’’ for NATO will tential conflicts between Poland, Hungary gary. not be publicly reached until April 1999, and the Czech Republic and their neighbors; Relations between Hungary and Serbia are when it is to be unveiled at a 50th anniver- damaging our relationship with Russia and even worse. Indeed, the treatment of the sary summit in Washington. When Secretary driving it into the arms of Iran, Iraq and Hungarian minority in Serbia’s province of of State Madeleine Albright recently said in China; and committing the United States to Vojvodina mirrors Belgrade’s repression of Brussels that NATO would evolve into ‘‘a pouring money down ‘‘a financial black the Albanians in Kosovo. Vojvodina has the force for peace from the Middle East to Cen- hole.’’ potential to explode just as Kosovo has now tral Africa,’’ European foreign ministers The latter point is one of the most critical, done. Thus, NATO expansion could entangle quickly signaled opposition to such a radical according to those who either oppose expan- America in numerous murky, parochial dis- expansion of the alliance’s geographical area sion or want to see it more fully debated. putes among Central and East European of responsibility. The Clinton administration has estimated countries. Do Americans really want U.S. And Albright’s deputy, Strobe Talbott, that the cost of expanding the alliance will troops in the middle of a conflict between surprised some European ambassadors to be $1.5 billion over the next decade, but ear- Hungary and Slovakia, or Hungary and Ser- Washington last week when he gave a ring- lier estimates range from $27 billion to $35 bia, or Poland and Belarus? Yet NATO ex- ing endorsement to the possibility of even- billion over 13 years (the Pentagon) and from pansion entails precisely that sort of danger. tual Russian membership in NATO, an idea $61 billion to $125 billion over 15 years (the that divides NATO governments and which Poisoning the relationship with Russia: Congressional Budget Office). The fact is The conventional wisdom is that, since the the administration has not highlighted for that more accurate and realistic cost signing of the Founding Act between Russia the Senate. projects simply cannot be calculated at this ‘‘I regard Russia as a peaceful democratic and NATO, Moscow no longer opposes NATO time. expansion. Nothing could be further from the state that is undergoing one of the most ar- The administration’s $1.5 billion projection duous transitions in history,’’ Talbott said truth. A recent op-ed by Russia’s ambassador ‘‘is a politically driven document that re- to the United States makes it clear that in response to a question asked at a sympo- flects the inability of the proposed new sium at the British Embassy. He said Clinton Russian leaders regard even the first round members and the unwillingness of the West of expansion as an unfriendly act. Any subse- strongly supported the view that ‘‘no emerg- European countries to pick up the real finan- quent round, especially one that tried to in- ing democracy should be excluded because of cial tab,’’ Carpenter asserts. corporate the Baltic republics, would risk a size, geopolitical situation or historical ex- We agree with Carpenter and the Senate’s military collision with a nuclear-armed perience. That goes for very small states, go-slow faction, including Sen. Daniel Pat- great power. such as the Baltics, and it goes for the very rick Moynihan (D–N.Y.), who thinks that Indeed, the Founding Act itself could be- largest, that is for Russia.’’ This is a mes- there is no quick fix for healing the wounds come a source of recrimination. U.S. officials sage that Clinton has given Boris Yeltsin in inflicted on Central and Eastern Europe by a insist that the agreement gives Russia ‘‘a their private meetings, Talbott emphasized. half century of harsh authoritarian Soviet voice, not a veto’’ over NATO policy, but ‘‘This is a classic case of never saying rule. that is not the way Russian officials have in- never,’’ Talbott continued. ‘‘If the day comes Rather than adding three former Com- terpreted the Founding Act. President Boris when this happens, it will be a very different munist countries to an organization that was Yeltsin assured the Duma that the act gave Russia, a very different Europe and a very conceived as a military barrier to the spread Russia a veto over invitations to new mem- different NATO.’’ of communism in Europe—a dubious propo- bers beyond the first round as well as over How different, and in what ways, is worth sition now that such a threat no longer ex- future ‘‘out of area’’ NATO missions, for ex- discussing before the fact. The Clinton ad- ists—Moynihan would like to see them first ample in the Balkans. U.S. and Russian offi- ministration has not taken seriously its re- become members of the economically ori- cials cannot both be right. sponsibility to think through the con- ented European Union before being admitted Russia is reacting badly even to the initial sequences of its NATO initiative and to ex- to NATO. round of expansion. Moscow has responded to plain those consequences to the American Lott should delay the vote on NATO ex- NATO’s encroachment by forging closer ties people. The Senate needs an extended de- pansion and give the Senate time to conduct with both Iran and Iraq and undermining bate, not an immediate vote. a full and extended debate on this important U.S. policy throughout the Middle East. Still issue. more worrisome are the growing political [From the Hill, Mar. 18, 1998] NATO: WHAT’S and military links between Russia and THE RUSH? [From the Hill, Mar. 18, 1998] China. Moscow and Beijing speak openly of a There’s an unseemly haste in the way the THE THREE BOOBY TRAPS OF NATO ‘‘strategic partnership,’’ and China has be- Clinton administration and the foreign pol- EXPANSION come Russia’s largest arms customer—some- icy establishment are pushing the Senate for thing that would have been unthinkable a (By Ted Galen Carpenter) an immediate vote on expanding the North few years ago. Atlantic Treaty Organization (NATO) to in- Both the Clinton administration and the If the United States drifts into a new Cold clude Poland, Hungary and the Czech Repub- Senate Republican leadership are using a War with Russia because Washington insists lic. full-court press to get an immediate Senate on giving security guarantees to a collection As a bipartisan group of 17 senators argued vote on NATO expansion. Senators should re- of small Central and East European states, in a letter urging Majority Leader Trent sist such pressure for a rush to judgment be- that will go down in history as a colossal Lott (R) of Mississippi to postpone the vote fore addressing the numerous problems asso- policy blunder. until at least June 1, there are still to many ciated with NATO expansion. A financial black hole: NATO and the Clin- unanswered questions about what figures to Proponents frequently act as through ton administration now insist that the alli- be one of the most important foreign policy NATO is a democratic honor society that the ance can be expanded for a paltry $1.5 billion issues in recent years. nations of Central and Eastern Europe over 10 years. That conclusion differs sharply ‘‘We are uncomfortable voting when so should be able to join. But NATO is a mili- from an earlier Congressional Budget Office many of the purposes and assumptions of tary alliance, and the decision to extend U.S. (CBO) estimate of $61 billion to $125 billion NATO enlargement remain either ambiguous security guarantees to new members is seri- over 15 years and the Pentagon’s own origi- or contradictory,’’ the senators wrote Lott ous business. nal estimate of $27 billion to $35 billion over last week. The group of eight Republicans Three lethal booby traps await the United 13 years. The latest NATO and administra- and nine Democrats, let by Bob Smith (R– States if NATO expansion goes forward. tion projection doesn’t even pass the N.H.) and Tom Harkin (D–Iowa), pointed out Any enemy of my ally becomes my enemy: straightface test. It is a politically driven that expanding the NATO military alliance Before senators welcome Poland, the Czech document that reflects the inability of the to include the three former Communist Republic and Hungary into NATO’s ranks, proposed new members and the unwillingness countries could have enormous unforseen fi- they should assess potential conflicts that of the West European countries to pick up nancial, political and military consequences. might embroil those countries. It would be a the real financial tab. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2281 Johns Hopkins University Professor Mi- lion highway and mass transit bill. It will, if Mr. BIDEN. I know the Senator from chael Mandelbaum aptly describes NATO ex- plans hold, spend only a few days on moving Connecticut wishes to speak. I will just pansion as ‘‘the mother of all unfunded man- the NATO shield hundreds of miles eastward take 2 minutes here. dates.’’ If expansion is not merely an exer- to include Poland, Hungary and the Czech One, I want to make it clear, when I cise in empty political symbolism, even the Republic. CBO estimate could prove to be conservative. The reason is simple. As Sen. Connie Mack was making a case to my friends from Moreover, none of the estimates takes into of Florida, the chairman of the Senate Re- Virginia and New York about the com- account the probable costs of subsequent publican Conference, told me while trying to parison of Turkey and Poland, it did rounds of expansion, yet administration herd reluctant senators into a closed-door not relate to whether there was merit leaders insist that they will occur. discussion of the NATO issue one afternoon in defending Turkey. There is. Not only In light of those troubling facts, the Sen- last week, ‘‘No one is interested in this at merit, there is an obligation. I was ate should at least conduct a lengthy, com- home,’’ so few of his colleagues think it worth much of their time. making the larger point which goes to prehensive debate on NATO expansion, not the serious issue the Senator from Vir- rush through the proceedings as if the issue It is a cliche to observe that since the Cold was akin to designating National Wildflower War ended, foreign policy has dropped to the ginia has raised honestly—and the only Week. After all, the decision may determine bottom of voters’ concerns. But as two of the one who has done it forthrightly so whether American troops someday have to senators who question the wisdom of NATO’s far—and that is, is there a consensus in fight and die in Eastern Europe. expansion, Democrat Daniel Moynihan of America to defend any European coun- New York and Republican John Warner of try? [From the Boston Globe, Mar. 18, 1998] Virginia, remarked in separate interviews, serious consideration of treaties and mili- Whatever commitment we make, we SENATE RECKLESSNESS ON NATO? tary alliances once was considered what the must keep. And he is right in raising The Senate is poised to make a serious Senate was for. No longer. the issue: Are the American people—do mistake by ratifying a first stage of NATO Wrapping the three former Soviet sat- you all understand, all America, that if expansion. The anticipated inclusion of Po- ellites in the warm embrace of NATO is an we expand, we are committing our sa- land, Hungary, and the Czech Republic is a appealing notion to many senators, notwith- momentous decision, enlarging the treaty cred honor to defend Poland as we have standing the acknowledgement by advocates Germany, to defend the Czech Republic organization and the geopolitical area cov- that the Czech Republic and Hungary have a ered by the allies’ mutual security guaran- long way to go to bring their military forces as we have England, to defend the tee. If ever a Senate vote deserved prudent up to NATO standards. As the date for ratifi- country of Hungary as we have Den- deliberation, this is it. cation has approached, estimates of the costs mark? Are we prepared to do that? Unfortunately, sensible requests from to NATO have been shrinking magically, but That should be discussed, and it should some senators to pause for careful consider- the latest NATO estimate of $1.5 billion over be discussed forthrightly. And I thank ation of this first round of enlargement have the next decade is barely credible. him for raising that issue. been rejected, and there are not enough The administration, in the person of Sec- votes to pass an amendment by Senators retary of State Madeleine Albright, has re- There is much more to say, but I will John Warner of Virginia and Patrick Moy- fused to say what happens next if NATO have plenty of chance to say it, so I nihan of New York, who proposed a pause of starts moving eastward toward the border of yield to my friend from Connecticut. three years before NATO admits a second Russia. ‘‘The door is open’’ to other coun- The PRESIDING OFFICER. The Sen- flight of new members. tries with democratic governments and free ator from Connecticut. In a letter to the Senate minority leader, markets, Albright says. The administration Mr. DODD. I see my colleague from Tom Daschle, on Saturday, President Clin- is fighting an effort by Warner and others to Missouri is here. I tell him this will be ton argued that for the sake of enhanced se- place a moratorium on admission of addi- very brief, my remarks. I don’t want curity, ‘‘we must leave the door open to the tional countries until it is known how well addition of other qualified new members in the first recruits are assimilated. him to depart. I know he has been the future. The ‘open door’ commitment Moynihan points out that if the Baltic standing here for some time. made by all the allies has played a vital role countries of Latvia, Estonia and Lithuania, It is on an unrelated matter that is in ensuring that the process of enlargement which are panting for membership, are the subject of this debate, Mr. Presi- benefits the security of the entire region, not brought in, the United States and other sig- dent. And let me just say, having the just these first three members.’’ natories will have a solemn obligation to de- privilege of standing here and listening But the administration has yet to make a fend territory farther east than the western- to the Presiding Officer share his re- convincing case that NATO enlargement at most border of Russia. He points to a Rus- marks, I commend him for those re- the present time is truly necessary to Euro- sian government strategy paper published pean or American security. With the dis- last December saving the expansion of NATO marks. And I thank my colleague from appearance of the Soviet Union, the states of inevitably means Russia will have to rely in- Delaware for yielding here. Central and Eastern Europe face no immi- creasingly on nuclear weapons. Mr. President, I ask unanimous con- nent threat from an expansionist super- Moynihan and Warner are far from alone in sent to speak as in morning business. power. And if political upheavals in Russia raising alarms about the effect of NATO en- The PRESIDING OFFICER. Without raised the specter of such a threat in the fu- largement on U.S.-Russian relations. The objection, it is so ordered. Duma, Russia’s parliament, on Jan. 23 passed ture, there would be time to prepare for it f and enlarge the alliance. NATO’s expansion, a resolution calling NATO expansion the big- rather than enhancing Europe’s stability, gest threat to Russia since the end of World HIS EMINENCE BERNARD CAR- could endanger it. War II. The Duma has blocked ratification of DINAL LAW, ARCHBISHOP OF President Vaclav Havel of the Czech Re- the START II nuclear arms agreement BOSTON, REFLECTING ON CUBA public has made a strong case for anchoring signed in 1993 and approved by the Senate the former members of the Warsaw Pact in two years ago. Mr. DODD. Mr. President, earlier last the West. But the commonality of values in- George Kennan, the elder statesman who week I had the privilege of having a voked by Havel need not mean immediate in- half a century ago devised the fundamental brief conversation with His Eminence clusion in a military alliance formed to keep strategy for ‘‘containment’’ of the Soviet Bernard Cardinal Law, the Archbishop Soviet forces from invading Western Europe. Union, has called the enlargement of NATO of Boston. In fact, it is a nice coinci- There are other, wiser ways to pursue what a classic policy blunder. Former Sen. Sam Clinton calls ‘‘our strategic goal of building Nunn of Georgia, until his retirement last dence that my colleague from Missouri an undivided, democratic, and peaceful Eu- year the Democrats’ and the Senate’s lead- is here on the floor as I say these re- rope.’’ ing military authority, told me, ‘‘Russian marks, because I shared with him a cooperation in avoiding proliferation of message that Cardinal Law had sent to [From the Newark (NJ) Star-Ledger] weapons of mass destruction is our most im- our colleague from Missouri, Senator UNDUE HASTE ON NATO EXPANSION portant national security objective, and this ASHCROFT, who had the privilege of (By David Border) (NATO expansion) makes them more sus- knowing Cardinal Law when he was picious and less cooperative.’’ This week the Senate, which counts among To the extent this momentous step has presiding as a bishop in Missouri back its major accomplishments this year renam- been debated at all, it has taken place out- before assuming his present post. And ing Washington National Airport for Presi- side the hearing of the American people. Too he extended his best wishes to our col- dent Ronald Reagan and officially labeling bad our busy Senate can’t find time before it league from Missouri. So I appreciate Saddam Hussein a war criminal, takes up the votes to let the public in on the argument. his presence here on the floor as I share matter of enlarging the 20th century’s most successful military alliance, the North At- Several Senators addressed the these remarks. lantic Treaty Organization. Chair. In the course of our conversation, The Senate just spent two weeks arguing The PRESIDING OFFICER. The Sen- Cardinal Law mentioned to me he was over how to slice up the pork in the $214 bil- ator from Delaware. going to be speaking at a conference S2282 CONGRESSIONAL RECORD — SENATE March 19, 1998 sponsored by the American Academy of These pilgrims to Cuba included bishops, In an earlier visit to Cuba, I objected to Arts and Sciences at Harvard Univer- priests and sisters, and Catholic laity as well President Castro concerning the severe in- sity. The topic of the conference was to as Protestants and Jews. There were busi- timidation of the omnipresent Committees be on Cuba, Mr. President. ness leaders, bankers, doctors and a Health of the Revolution. These watchdogs of Marx- Care System President. There were heads of ist orthodoxy saw as dangerously subversive The cardinal was very kind enough to social service agencies and representatives of the baptism of a child or the visit of a priest send a copy of his remarks to me. And foundations, there were lawyers and judges, or the regular attendance at Mass. Castro’s after reading them, I have no doubt Congressmen, presidents of colleges, a law response, replete with Church history ac- that all of my colleagues should have school dean and a university professor, and cording to Marx, made the claim that the that opportunity as well. They are ex- the editor of a national magazine. We were a state did allow for religious freedom. The cellent, excellent remarks and ones wondrously diverse group, but we found State was powerless, in his explanation, to that I think will be worthwhile. unity in our conviction that the time is now counter the strong anti-Church sentiment of I know Members are going through for a change in U.S. policy towards Cuba. the people borne of what he described as the Since returning from the Papal Visit, I Church’s oppressive and sinful past. their own private discussions of what have often been asked if I thought that For the past fourteen years, I have been in should be our policy with regard to change might now come to Cuba. The ques- continual contact with the Church in Cuba. Cuba. There have been some changes tion misses the point that change has al- I was present in the Nunciature in Havana here. How do you respond to them? ready come. An earlier barometer of change the first time Castro met with Cuban Cardinal Law has laid out, I think, focused on the departure of Fidel Castro as bishops. There were no more than three sub- some very, very creative, clear, and in- the threshold for any substantive change. stantive encounters of this kind before the teresting ideas on how we ought to The events of the past year clearly dem- Pope’s visit. During the past fourteen years move forward here. So I urge my col- onstrate that that barometer simply does there have been sporadic efforts on the part not work. The toothpaste is out of the tube, of the Cuban government to marginalize the leagues to read these remarks. and Fidel Castro squeezed the tube. Church by suggesting that the bishops were Cardinal Law is extremely well in- Any blueprint for a change in policy which ‘‘counter revolutionary’’, which in our terms formed on this subject. He has visited demands a change in leadership in another would mean unpatriotic and subversive. Cuba over the years. He has kept in country is too rigid a starting point and de- Against that all too schematic back- very close contact with the clergy in pending on the means willing to be used to ground, focus on Havana, Sunday, January Cuba. I was particularly struck, Mr. achieve that departure, could lack a moral 25, 1998. The Plaza of the Revolution has a President, by what he believes we claim. This is not to condone a dismal record new face: a heroic-sized painting on the fa- should have learned from Pope John on human rights. Religious freedom is cer- cade of the national library portrays Jesus in the familiar style of the Sacred Heart. Paul II’s January visit to Havana; tainly not yet fully developed in Cuba. The fact remains, however, that dramatic change One million Cubans, with a sprinkling of for- namely—and I quote him — has occurred within the past twelve months eign pilgrims, are ranged in front of the The Holy Father has amply demonstrated in the area of religious liberty. These altar. Fidel Castro, in a business suit, is in that a policy of positive engagement can changes could not have occurred without the the front row. achieve far more change within Cuba than active approval of President Castro. He has For me, one among the many moving mo- can the [U.S.] embargo. been a promoter, not an obstacle to what is ments stands out in a particularly vivid way. Cardinal Law starkly and very viv- now happening in Cuba. During the Havana Mass, the Holy Father idly highlights what he thinks is the It is not the visit alone, stunning though it commissioned representatives from various was, which chronicles change. Events leading dioceses to go forth and present the message failure of our current policy with re- of the Church. He presented each with a gard to Cuba by contrasting it with our up to the visit must also be acknowledged. Some in Cuba with whom I have spoken Bible. The last person to approach the Pope policies towards the People’s Republic place great emphasis on the private audience was a older woman, quite frail, who was of China and even Vietnam—two na- accorded Fidel Castro by Pope John Paul II. helped up the stairs by two young men. When tions that have had deplorable human One must also note the mixed commission of she approached the Holy Father, she threw rights records and where religious free- government and Church to plan for the Papal her arms around him. There they were, aging dom is severely restrained, even as we visit which marks a sea change in that rela- and frail, this elderly woman and the Pope, with their common witness to fidelity in the speak here today. tionship. The Church was able to engage in a door to door nationwide mission in prepara- face of Communist oppression. As she was He then pointedly asked—and I quote helped down the stairs, she was accompanied him— tion for the Pope’s visit. Religious proces- sions were allowed, as were some outside re- by the thunderous applause of thousands of If openness is thought to be further free- ligious celebrations. The exclusion of the Cubans. I wondered what she thought. Must I not dom in those nations where change is not so Church from the use of public media was, at have been for her the unfolding of a miracle? evident, how it is that a different standard is least in a modest way, but nonetheless estab- What had it been for her these past years in applied to Cuba where there is evident lishing a precedent, lifted with the pre-visit a land governed by Marxism? What must change? nationally televised address by the Arch- have been her joy in this sea of Cubans, so Mr. President, I do not believe that bishop of Havana, Jaime Cardinal Ortega. many young and ecstatic in their celebration Quite before the time of planning for the there is a credible answer to that ques- of faith? I could only think of Anna in the visit, the Church was allowed a new expres- tion. And that alone should tell us why incident recorded by St. Luke. Anna was an sion of social services through Caritas Cuba. the current U.S. policy with respect to old woman, a widow, who spent her days in While its work is still narrowly cir- Cuba is so flawed. Cardinal Law’s re- prayer and fasting in the Temple. When cumscribed, a principle of public, organized Mary and Joseph brought the infant Jesus to marks, which touched on such issues as social service by the Catholic Church has present him to God in the Temple, Anna the state of affairs in the Cuban and been recognized. The backlog of visa requests came to the scene at that moment. St. Luke United States-Cuban relations are very by foreign clergy, religious and other Church insightful, and I urge my colleagues to says ‘‘she gave thanks to God and talked workers has been broken as the number of about the child to all who looked forward to read the full text of his remarks, which visas has dramatically increased. the deliverance of Jerusalem.’’ I now ask, Mr. President, unanimous Change cannot be rooted in a precise para- It must be said that the Cuban government digm for the future. If we are to measure consent to have printed in the RECORD. could not have been more obliging and wel- There being no objection, the mate- change realistically, it must be measured coming. The Masses of the Holy Father were against the past. The past that I know in rial was ordered to be printed in the televised live nationally. terms of the Church in Cuba begins in 1984. As the Holy Father left Jose Marti Airport RECORD, as follows: Before then, there were confiscations of on January 25th, he said that in our day ‘‘no ADDRESS BY BERNARD CARDINAL LAW BEFORE Church property, the closing of Catholic nation can live in isolation. The Cuban peo- THE AMERICAN ACADEMY OF ARTS AND schools and other institutional works, the ple therefore cannot be denied the contacts SCIENCES departure, and some would argue the forced with other peoples necessary for economic, In preparing these remarks, I reviewed my exile, of hundreds of Church personnel. There social and cultural development, especially correspondence file from persons who accom- were the labor camps which number among when the imposed isolation strikes the popu- panied me to Cuba for the Pope’s visit. Our their alumni the present Cardinal Arch- lation indiscriminately, making it ever more direct flight from Boston to Havana might bishop of Havana. Pervading and justifying difficult for the weakest to enjoy the bare es- have established a record in itself! Every let- all this was an official version of history, sentials of decent living, things such as food, ter expressed appreciation for the oppor- employing a method with which we have be- health and education. All can and should tunity to participate in a historic and pro- come all too sadly accustomed in some cur- take practical steps to bring about changes foundly moving event. Almost to a person rent trends in the U.S. academy. It is the ap- in this regard.’’ there was the expressed desire to be of assist- plication of deconstruction to the study of These are important words of the Pope ance to the Church in Cuba and to the Cuban the past in a way which serves an ideological which have meaning not only for the Catho- people. end. lic faithful but for all women and men of March 19, 1998 CONGRESSIONAL RECORD — SENATE S2283 good will, including those who exercise lead- which would do this should be immediately And I recite them very briefly to you ership in government. Current U.S. policy passed. What is needed in Cuba is the ability here: Restore direct flights to Cuba; towards Cuba was set during the missile cri- to purchase food and medicine in the U.S. A ease restrictions on remittances and sis. A few things have happened since then, singular focus on facilitating charitable do- travel; suspend implementation of title however, including the tearing down of the nations of food and medicine is patently in- Berlin Wall and the unraveling of Com- adequate. III indefinitely; and utilize current ex- munist hegemony in Eastern Europe. The There are certain things that can be done ecutive authority to grant general li- visit of the Holy Father to Cuba in January tomorrow by the President of the United censes to permit the sale of food and of this year is one of those defining events. States. medicines. I say ‘‘title III.’’ That is of A policy driven by events of an earlier time The President should agree to license di- the Helms-Burton legislation. does not meet the challenge of new possibili- rect, humanitarian flights to Cuba. Mr. President, I strongly support ties which the Holy Father’s visit opens up. The President could take immediate ac- these recommendations and hope that One of the strongest impediments to new tion to ease remittance restrictions, increase the President will immediately act on policy initiatives is the pressure of partisan visiting privileges, and expand opportunities politics. Is it but the musings of an unrealis- for U.S. citizens particularly Cuban Ameri- them. tic cleric to suggest that an earlier pattern cans, to visit Cuba by restoring direct Let me summarize briefly some of of a bipartisan foreign policy could serve us flights. The right to travel is a Constitu- the other major points made in the well again? To that end, I propose the estab- tional right. It should not be violated for course of Cardinal Law’s presentation. lishment of a bipartisan National Commis- outdated political reasons. On the positive side, the Cardinal sion on U.S./Cuban relations. Such a Com- The President could restate that he will noted that ‘‘change has already come’’ mission, perhaps Presidential or conceivably continue suspending the international trade to Cuba in many ways; ‘‘dramatic organized by a non-governmental body, bans of Helms-Burton indefinitely. This change has occurred within the last would have as its charge the development of would help the people of Cuba and it would twelve months in the area of religious policy initiatives which could build on the ease the concerns of our closest allies and changes already perceived in Cuba since the trading partners. freedom’’—I am quoting him from his Pope’s visit. The work of this Commission The President should give serious critical remarks—‘‘a principle of public, orga- should be completed within three to six attention to the legal opinion that concludes nized social service by the Catholic months. It should not take longer than this that the Executive Branch has the legal and Church has been reorganized’’ by because the Commission’s work would be es- constitutional right to grant a general li- Cuban authorities; ‘‘the backlog of visa sentially a simple and straightforward task. cense for medicines and for food. Such an ac- requests by foreign clergy, religious The Commission might be co-chaired by tion on the part of the President would, of President Carter and President Bush or and other Church workers has been course, effectively end the food and medicine broken as the number of visas has dra- President Ford. It ought to include Senator embargo immediately. LUGAR, Representative HAMILTON, a U.S. The foreign policy initiatives of a Presi- matically increased;’’ and, ‘‘there has Bishop, Elizabeth Dole, head of the American dent can be decisive. President Nixon went been the release [in the last few weeks] Red Cross, two corporate CEO’s, two promi- to China. President Carter brought Begin of more than 400 [political] prisoners nent Cuban-Americans, someone from the and Sadat to Camp David. President Reagan [in Cuba].’’ field of medicine and someone representing met Gorbachev in Iceland to ease nuclear The cardinal also readily acknowl- the concerns of the media. tensions and President Bush followed up by edges that Cuba’s human rights Since the Holy Father’s visit, there has reducing our nuclear weapons. President been the release of more than 400 prisoners. record—and I agree with him—has been Clinton has the possibility of charting a new dismal. No one is suggesting, I hope— While one political prisoner is one too many, relationship between the United States and this direct response to the Holy Father’s Cuba. not by my remarks—that there has visit cannot be dismissed. So very much Let me end by recounting an incident dur- been a total transformation in Cuba. more needs to be done to broaden the scope ing the Pope’s visit. One of the pilgrims trav- There has not been a total trans- of human rights in Cuba. However, I am con- eling with us took a walk along the water- formation, but there has been change, vinced that the best way to do this is to front. He was alone, it was raining, and the and it is significant, and we ought to move the starting point of U.S. Policy from pavement was slippery. He stumbled and fell, respond to those changes that have oc- the missile crisis to the Papal visit. The with a resultant large cut in the head. Some curred. Holy Father has amply demonstrated that a passersby stopped their car and took him to policy of positive engagement can achieve He reminded—Cardinal Law did—lis- the emergency room of the nearest hospital. teners of Pope John Paul’s party com- far more change within Cuba than can the The care he received was both professionally embargo. competent and compassionate. However, he ments as he left Havana to return to Cardinal Ortega has commented on the so- was struck by the fact that the only medi- the Vatican. I quote him. He said: called Helms-Burton Act that ‘‘any economic cine he could observe on the shelf in the The Cuban people cannot be denied the measure that aims to isolate a country and treatment room was some alcohol. When the contacts with other peoples necessary for thus eliminates the possibility of develop- doctor arrived to stitch his wound, he first economic, social, and cultural development, ment, thus threatening the survival of peo- reached into a pocket of his white coat, re- especially when the imposed isolation ple is unacceptable.’’ moved a light bulb, and screwed it into the strikes the population indiscriminately. It is impossible to reasonably support the empty socket so that he could see more eas- embargo against Cuba while at the same Mr. President, I think it is fair to say ily. It is not just a bulb that is missing. time granting most favored Nation status to Cardinal Law was extremely critical of There is often a lack of power with devastat- the People’s Republic of China, and while ing consequences, especially in surgery. The current U.S. policy. He noted that the moving into closer relations with Vietnam. lack of medicines more quickly and cheaply ‘‘[c]urrent U.S. policy towards Cuba Both of these nations have a deplorable attainable from the U.S. severely restricts was set during the missile crisis’’ and record on human rights in general and on re- the treatment that can be provided. Even that ‘‘[a] policy driven by events of an ligious liberty specifically. If openness is more basically, the effects of the lack of suf- thought to further freedom in those nations earlier time does not meet the chal- ficient food threaten the most vulnerable where change is not so evident, how is that lenge of new possibilities which the members of the population, the old and the a different standard is applied to Cuba where Holy Father’s visit opens up.’’ young. there is evident change? Finally, Cardinal Law made a num- We should not wait for the report of a bi- I would submit that the people of Cuba de- ber of very important recommenda- partisan commission to introduce some serve better than that from us. I would sub- mit that it adds no honor to our country to tions concerning how we might begin measures which would ameliorate human to fashion some new and constructive suffering in Cuba, which would foster cul- deprive a people of those necessities which tural, religious and other interchanges, and should never be used as bargaining chips. policy initiatives. He recommended, for which would therefore, encourage the new Change is occurring in Cuba. The question example, that steps be taken to isolate attitude of openness and change within is, do we have the political will and moral U.S.-Cuba policy from partisan politics Cuba. It is time for the U.S. To respond posi- courage to change? by establishing a bipartisan national tively to the change that is occurring in Mr. DODD. Mr. President, I would commission on U.S.-Cuban relations. I Cuba. also like to call to the attention of my think this is an intriguing idea and one There is no moral justification for the cur- colleagues some very specific rec- that I intend to discuss personally with rent embargo. In terms of effectiveness as an ommendations Cardinal Law has made the President and the Secretary of agent of change it has proven to be complete failure. The most egregious aspects of the to President Clinton and the adminis- State. embargo, namely the prohibition of sale of tration, recommendations which the Mr. President, I believe that the car- food and medicine, must be lifted imme- President has the authority, without dinal’s remarks are timely, they are diately. The two bills currently in Congress any acts of Congress, to undertake. important, and they are worthy of our S2284 CONGRESSIONAL RECORD — SENATE March 19, 1998 serious consideration. I urge my col- nization in the history of the world. NATO treaty 50 years ago. The ‘‘fun- leagues to review them personally in And I think that is a fair statement. A damental security task’’ in the new these coming days as they formulate major achievement of the organization strategic concept of 1991 was ‘‘To pro- their own views on how we ought to is the fact that a third world war has vide one of the indispensable founda- proceed with regard to U.S.-Cuban rela- not erupted in Europe. It is pretty tions for a stable security environment tions. clear that the Soviet Union, in its days in Europe . . . in which no country Mr. KENNEDY. Would the Senator of power and strength, dared not in- would be able to intimidate or coerce yield? fringe on the territory of those pro- any European nation or to impose he- Mr. DODD. I will be happy to. tected by the NATO alliance. That is to gemony through the threat or use of Mr. KENNEDY. Mr. President, I just the credit of the organization. force.’’ want to, first of all, commend my Article 5 of the NATO treaty was the This is a major expansion and a sub- friend, the Senator from Connecticut, heart of the organization. And I would stantial change in the mission of for his understanding of Cardinal Law’s like to refer the Members of the Senate NATO. It is a change in the direction statement and for the constructive na- and those interested in this debate to in which the organization is headed. It ture in which the Senator has referred Article 5 at this time. changes NATO’s responsibility. Clear- to it. Article 5 States: ly, no longer is NATO for the collective I do think that it is an enormously The Parties agree that an armed attack defense of a limited territory. NATO serious document. I agree with the against one or more of them in Europe or now has the impossible task of stop- Senator that it deserves a great deal of North America shall be considered an attack ping intimidation and coercion study. I had had the opportunity to against them all and consequently they throughout NATO and non-NATO Eu- talk to him prior to the time of deliv- agree that, if such an armed attack occurs, each of them, in exercise of the right of indi- rope alike. So the mission of NATO has ery. He is motivated by a very deep and vidual or collective self-defense recognized been transitioning from the mission continuing humanitarian concern from by Article 51 of the Charter of the United Na- ratified by the Senate, and it has been his frequent visits there and from the tions, will assist the Party or Parties so at- evolving, as if treaties are allowed to study of the people on the island. tacked by taking forthwith, individually and evolve. It has been organic, rather than I just want to commend the Senator, in concert with the other Parties, such ac- static or having specific boundaries. who is a real leader in the issues of the tion as it deems necessary, including the use hemisphere, and to thank him for an of armed force, to restore and maintain the The catch phrase that defines this ef- excellent statement, and to say that I security of the North Atlantic area. fort is that NATO must ‘‘go out of area think it has been an enormously con- What the heart of the treaty really or go out of business.’’ This whole con- structive and positive statement and I designates is that the North Atlantic cept, I think, demands very close ob- hope our colleagues will pay attention Treaty Organization was an organiza- servation. to it. I thank the Senator. tion designed to affect and protect the Mr. President, I have tried to point Mr. DODD. I thank my colleague territory—the territorial integrity —of out that the objectives specified in the from Massachusetts. the Nations that were its member strategic concept of 1991 embraced by Mr. President, I yield the floor. states. the NATO allies is a set of objectives After the collapse of the Soviet Mr. ASHCROFT addressed the Chair. far different from that which the NATO Union, we did not have the same kind The PRESIDING OFFICER. The Sen- organization was authorized to achieve of threat to the territory of the NATO ator from Missouri. in its Charter, which was ratified by states that had existed prior to the col- Mr. ASHCROFT. Thank you, Mr. the U.S. Senate. I believe that NATO lapse of the Soviet Union. I think few President. was not intended for these new pur- of us would argue with the proposition f poses. that the NATO alliance really was an PROTOCOLS TO THE NORTH AT- alliance which drew a bright line to de- The understanding of the U.S. Senate LANTIC TREATY OF 1949 ON AC- fend against the potential incursion by in 1949, and the understanding of the CESSION OF POLAND, HUNGARY, the Soviet Union. American people, has been that NATO AND THE CZECH REPUBLIC Since the Soviet Union collapsed, is designed to protect territory—the The Senate continued with the con- there has been discussion among NATO territory of member nations—not de- sideration of the treaty. planners to find a new mission for the signed to be on call in other areas in Mr. ASHCROFT. Mr. President, I rise Alliance. Counterproliferation, the ad- Europe and, as the Secretary of State to participate in the debate regarding vancing of political ‘‘interests’’ of has mentioned, in Africa and literally NATO. NATO members, peacekeeping, and cri- to the uttermost parts of the Earth. One of the interesting facts about the sis management became the kinds of I will be submitting an amendment debate is that the mission of NATO has issues discussed at NATO—an entirely for consideration by the Senate to not been a matter of significant discus- different mission than it originally had make it clear that collective security sion. and, frankly, a mission that is not con- will remain the heart of NATO, and There are a lot of questions—about sistent with the charter of NATO itself. that this is the only mission allowable the cost of enlargement, the political The assembled NATO powers, in 1991, under the treaty, because it is impos- and strategic benefits to potential new adopted and promulgated a strategic sible to amend the treaty without members of NATO, and the effect of concept. For the strategic concept of bringing it back to this Senate for any expansion of the NATO alliance on 1991, there was an interesting transi- amendment. our relationship with Russia—that tion in the statement of what NATO is have all been discussed. These issues all about. Collective defense, the con- My amendment is tailored not to have received the most attention. cept in Article 5 which has been the constrain NATO’s effectiveness in the But while expansion of NATO nu- central theme and thesis of NATO for future, nor is it intended to micro- merically is significant, perhaps the its years of great success, was rel- manage NATO’s military planning mission of NATO deserves serious con- egated to the bottom of the list of mis- from the Senate floor. The central por- sideration as we look at an institution sion priorities. tion of the amendment is taken di- which has not only been involved in a As a result of putting collective de- rectly from the North Atlantic Treaty long heritage of successful mainte- fense at the bottom, a number of other itself. My amendment states that any nance of the territorial integrity of our things were listed as missions of military operation outside Article V comembers of this organization in Eu- NATO. In some respects, I find these must be based on the principle of col- rope, but has also been a vital part of new mission priorities to be challeng- lective defense, namely, the territorial protecting American interests. ing because they are not the kinds of integrity, political independence, or se- NATO has been very successful. Ear- things for which NATO was created, curity of a NATO member. lier, the Senator from Washington and they are not the kinds of missions I thank the Senator from Georgia for stated that NATO has been the most that the U.S. Senate and its giants in his agreement in allowing me to finish successful multinational defense orga- the Senate ratified when ratifying the my remarks. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2285 EDUCATION SAVINGS ACT FOR bling existing facilities. It does noth- ity to manage in a fashion that almost PUBLIC AND PRIVATE SCHOOLS ing to reduce class size in school. It everybody says ought to be done. In ad- The PRESIDING OFFICER. Under does nothing to provide qualified dition to that, the House legislation the previous order, the hour of 4:45 hav- teachers in more classrooms across the gives taxpayers new power. If the IRS ing arrived, there will be 30 minutes of Nation. It does nothing to help chil- sends out a collection notice, you know debate prior to the vote on cloture on dren reach high academic standards. It with certainty that they better be cer- H.R. 2646. Debate time is equally di- does nothing to provide after-school ac- tain that they are right; otherwise, vided and controlled for the majority tivities to keep kids off the street and they are going to have to pay your legal fees and other fees associated up by Mr. COVERDELL and by the Demo- away from drugs and out of trouble. It to $100,000 of punitive damages. cratic leader. does nothing to improve the quality of In addition, Mr. President, in the leg- The Senate resumed consideration of education for children in public islation passed by the House by 426–4 the bill. schools. last November—which, if we had taken Mr. KENNEDY. Mr. President, I yield Working families do not have enough it up and passed it here, could be myself 5 minutes of the opposition assets in savings to participate in this conferenced and down to the President time. scheme. This regressive bill does not for signature by the April 15 deadline. The PRESIDING OFFICER. The Sen- help families struggling to pay day-to- That should be our deadline. By the ator from Massachusetts is recognized. day expenses during their children’s Mr. KENNEDY. Mr. President, I urge school years. This so-called education way, the American taxpayers don’t have an Easter recess. They can’t go the Senate to reject cloture on this bill does nothing for education. It sim- home and say, ‘‘I’ll see you after the bill. Improving education can and must ply provides a tax shelter for the rich. April 15 deadline.’’ There are also new be a top priority for Congress and the Congress should be building new requirements in the IRS reform propos- nation. But this Republican bill flunks schools, not building new tax shelters als that are on the table which calls for for the wealthy. Congress should be re- the test. They call it their ‘‘A+’’ bill, the Commissioner of the Internal Reve- ducing class size, not reducing aid to but it’s anti-education. It deserves an nue Service to be present when we are public schools. ‘‘F.’’ passing new tax laws to speak out for We know what it takes to achieve It is the nation’s public schools that the American taxpayer and say, this is genuine education reform. The place to need help. So what do our Republican what it will cost the taxpayer to com- start is by resoundingly rejecting clo- friends do? They propose legislation to ply. You have given a great speech aid private schools. That makes no ture on this defective bill and then about how this new tax break such and sense at all. Our goal is to strengthen amending it in the ways that would such and such and such, but this is public schools, not abandon them. genuinely help the Nation’s schools. what it will cost the American tax- Incredibly, the Republican strategy How much time does the Senator payer to comply. on the Budget Committee is more of from Nebraska desire? Now, just listen to this new tax idea. the same. The Republican plan does Mr. KERREY. Five minutes. Since 1986 this Congress has amended not provide for key investments to im- The PRESIDING OFFICER. The Sen- the tax law 60-odd times. When we con- prove public education. It does not pro- ator from Nebraska. tinue to do it, talk about how complex vide help to reduce class size. In fact, Mr. KERREY. Mr. President, I also the Tax Code is and why simplicity is the Republican plan proposes a cut of rise in opposition to cloture. If you needed, some of our greatest advocates $400 million—$400 million—in the budg- look out across America today and of flat tax and simplicity are not wild- et category for education next year. If look at the growth in the economy and ly enthusiastic about something that that anti-education plan is passed, the economic success and the various will add substantial complexity to schools and students will get even less reasons why we have that economic their tax returns. help next year than they are getting success, it is clear that one of the Let me walk through this education this year, just when they need help the things we need to do is invest in our in- legislation, which allows for tax-free most. frastructure. withdrawals from education accounts It is clear that our Republican We just passed an ISTEA bill, $200 for room and board, uniforms, trans- friends are no friends of public schools. billion or so in investments in roads, portation expenses, or supplementary They have an anti-education agenda. bridges, in our transportation system items and services, but only if these They want tax breaks for the wealthy to make it more productive. Our people things are required or provided by the who send their children to private are part of our infrastructure. school. Now, this not only requires schools. They want to cut the budget What we are saying on this side is families to have a pretty sophisticated for public schools. The Republicans that, if you want to provide a tax understanding of the law before they have put their cards on the table—and break, we ought to also be doing some- take their money out; it also appears it’s a losing hand for education. thing about our schools that are crum- that to be on the right side of the law, If they really wanted to improve the bling, about our class sizes that have parents would need to be able to justify nation’s schools, they wouldn’t propose grown too large. There is a lot more we their expenditures with detailed a $30 billion tax break, while cutting can do than just this piece of legisla- records. funds for education. tion. That is all we are asking for. Who is going to be checking those Now, with this cloture vote, they are There is an opportunity to offer some records? Will the IRS be asking tax- trying to gag Democrats to prevent us constructive amendments that would payers to submit bus fare receipts and from offering proposals that will genu- substantially improve this piece of leg- clothing bills with tax returns? Mr. inely help education. They are trying islation. Otherwise, as many others President, if they don’t provide that in- to force the Senate to pass their pri- have commented, the distributional formation when they file, are we going vate school bill or no bill. analysis is lousy and it does precious to be asking for it in an audit situa- The use of tax breaks to subsidize little to help those who are in the tion? Don’t forget that this K–12 provi- parents who send their children to pri- greatest need. sion sunsets in 2002. What does that vate schools is a serious mistake. Mr. President, there is another rea- mean? That means if we pass this legis- This chart indicates who the winners son that has not been mentioned on the lation, we will have three separate and losers are. Ninety-three percent of floor that I want to talk about a bit. rules governing the education savings the children in this country go to pub- Our American taxpayers have a dead- account. This year, an account that lic schools; 7 percent go to the private line called April 15 which is less than can be used for higher education, but schools. Yet when you look at the four weeks away. That is their dead- not K through 12; next year, through money, where the money goes, 48 per- line, their schedule. Under law they 2002, we have different rules allowing cent to the public schools, and 52 per- have to have their taxes paid. On the tax-free withdrawals from the account; cent to the private schools. 4th of November last year the House, and after that, K through 12 withdraw- This bill does nothing to address the by a vote of 426–4, passed a piece of leg- als could be made, but only from the serious need of public schools to build islation that would restructure the IRS contributions and earnings from 1999 to new facilities and repair their crum- and give the Commissioner the author- 2002. S2286 CONGRESSIONAL RECORD — SENATE March 19, 1998 Now if you understand that, I am sur- stand. The fundamental responsibility important step in the right direction, prised, because I don’t think your con- parents have is to raise children who and I urge my colleagues to support it. stituents will know. Will taxpayers are prepared for adulthood, children It’s time for innovation. It’s time to know how much they take out is tax who will themselves become nurturing empower parents. It’s time to prepare free? I doubt it. How will the IRS parents, productive citizens, and vital for the future. This is what the Cover- know? How will the IRS attempt to ex- leaders in the future. Toward achieving dell bill is all about. plain these new rules to taxpayers, and this objective, there are few things as I yield the floor. who will understand them? important as education. The PRESIDING OFFICER (Mr. Mr. President, that is why the law Mr. President, family is the founda- COATS). Who yields time? should say that the Commissioner of tion of our children’s education. And Mr. COVERDELL. How much time is the IRS is going to be at the table family is at the heart of the Coverdell remaining? when we write a tax law, to give us an bill. The objective here is simple—to The PRESIDING OFFICER. The Sen- estimate of what it will cost. The ma- empower fathers and mothers to be ator from Georgia has 7 minutes 20 sec- jority leader of the House came before proactive in directing the educational onds. the IRS Commission, which I chaired, endeavors of their children—to give Mr. COVERDELL. Mr. President, I and said it costs taxpayers upwards of them the resources they need to make believe we must be reading from dif- $200 billion to comply with the existing decisions consistent with their unique ferent scripts on this legislation. This code—with the existing code, Mr. needs and determined goals. is the sixth day of the filibuster from President. And here we are again— This bill allows us to join hands with the other side and, if successful, it will probably on the way home to give parents everywhere—to let them use keep 14 million families from opening a speeches about the complexity of our their money to educate their children. savings account; it will keep $2.5 bil- code—adding additional complexity. This bill allows them to increase their lion from supporting students in public Mr. President, we are going in the contributions from $500 per year to schools over the next 4 years; it will wrong direction. This bill takes us in $2,000 per year. This money will be keep $2.5 billion from supporting chil- the wrong direction. We should sched- available tax free for college expenses. dren in private and home schools over ule the IRS bill that passed the House. It allows for withdrawals to be used for the next 4 years; it will stop 1 million If we are not able to come up with a elementary and secondary education students who would benefit from tax piece of legislation in the Senate, we expenses. And it covers public and pri- relief on State prepaid tuition, and 17 need to bring the House bill to this vate schools. others to consider it; it will block 1 floor, pass it, get it to the President for The bill also makes state-sponsored million workers, including 250,000 grad- his signature, so that on the 15th of prepaid tuition programs tax-free, not uate students, from benefits from their April the American taxpayers will have tax-deferred, meaning that students employers for advanced education or the power they deserve. Give the Com- will be able to withdraw on a tax-free continuing education; it will block $3 missioner the authority he needs. And, basis the savings that accumulate in billion in new tax-exempt, private ac- finally, get that Commissioner at the their pre-paid tuition accounts. Par- tivity bonds, which will stop dead the table when this Congress is taking up a ents will have the incentive to put construction of 500 schools. That is new tax bill so on a piece of legislation money away today and their children what the filibuster will block. like this we will have his estimate of will have the full benefit of that money I find it strikingly similar to the de- what it will cost the American tax- tax free tomorrow. bate in opposition and the suggestion payer to comply with some new idea Already, forty-four states have pre- from the National Education Associa- that we have that we say is going to paid tuition plans in effect, and the tion and Mary Teasley, who says these benefit the American people. other six have legislation to create a tax-free savings accounts dispropor- I yield the floor. state plan, or they have implemented a Mr. COVERDELL. How much time tionately benefit wealthy families who feasibility study. Many cities and remains on the opposition? already send their children to private The PRESIDING OFFICER. The op- states are offering families the power and religious schools. Bunk. position has 4 minutes and your side of choice when it comes to selecting Seventy percent of the families that has 13. what school their children will attend. will use these accounts have children Mr. COVERDELL. I yield 5 minutes Others are embracing programs that in public schools. And my view is that to the chairman of the Finance Com- make private schools more accessible. Ms. Teasley is probably doing reason- mittee. Those who disagree with these impor- ably well. Mr. ROTH. Mr. President, first, let tant measures are really suggesting This is a letter from a very fine lady me say there is nothing more impor- that the money earned by these par- named Louise R. Watley, chairperson tant than for this Congress to enact ents does not belong to them, that gov- of the City Wide Advisory Council on legislation to make the IRS taxpayer ernment is best at determining how Public Housing in Atlanta. She has friendly. This has become a critical their money is spent, that there is no been a resident of the Carver Homes issue, primarily because of the hear- need to change business-as-usual in our Public Housing Community since 1955. ings held in the Finance Committee effort to improve the way we educate She says: that have shown abuse of taxpayers. America’s children. Clearly, this is not I have witnessed generations of young Afri- That must be changed. the message we’re hearing from home. can Americans grow up in one of our nation’s Now, as I have said many times, the Our states and communities—our fami- poorest neighborhoods. In the 1980s, I fought House version of reform is a good be- lies—are embracing innovative edu- the epidemic of crack cocaine among our ginning. But I have to emphasize, that cational programs. They realize the old youth by working to kick drug dealers out of is all it is—it is a good beginning. But way isn’t working. Many cities and our community. In the 1990s, I find myself it does not go far enough to make the states are offering families the power fighting the epidemic of hopelessness that of choice when it comes to selecting has resulted from the increasing failure of kind of changes, the kind of reforms our public schools to educate poor, urban the American taxpayer deserves. what school their children will attend. children. As the Chairperson of the City The Finance Committee has been Others are embracing programs that Wide Advisory Council on Public Housing, working hard to improve that legisla- make private schools more accessible. and on behalf of the thousands of Atlanta tion. It is legislation that we will take These measures are having a positive public housing residents the Council rep- up with the committee, full commit- impact. resents, I ask you to provide us with hope for tee, in the next 2 weeks. We expect to These measure are an important step improving the K–12 education of our chil- mark it up and report it out. But I forward, and the Senate can dem- dren. want to emphasize that I will not be onstrate its leadership on education by . . . Please support the passage of the A+ adopting this legislation. Let’s be bold, Accounts for Public and Private Schools Act satisfied, and I am not going to push as well as stronger Federal charter school forward legislation that does not help Mr. President. Our policies must offer legislation and demonstration public and the taxpayer as they so fully deserve. Dad and Mom the resources they need private school choice projects. Please allow Now, Mr. President, as for the Cover- to actively guide Junior’s education. the poorest children in Atlanta and Georgia dell bill, there is no question where I The Coverdell bill does this. It is a very to escape ineffective and unsafe schools. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2287 Mr. President, I have a feeling that the ‘‘education IRAs’’ for private schools in priority than the restructuring of the this woman has a little more personal S. 1133 and urge you to vote against passage IRS. We worked for 5 days on the Ron- experience than this lady defending the of this bill or any similar provision. No ald Reagan Airport. We debated human modification or additional amendments to status quo who works for the NEA. this provision, such as school construction, cloning for 4 days. You have to decide I ask unanimous consent that the would change our position. Positive ideas, what you want to schedule and what letter from Louise R. Watley be printed such as modernizing public school buildings, you think is the most important prior- in the RECORD, along with the letter should not be tied to tax schemes to benefit ity. from the National Education Associa- private and religious schools. In regard to the IRS, this education tion, for whom the White House now Instead of supporting S. 1133, NEA urges legislation will make our Tax Code you to vote for a substitute to provide tax does its bidding. more complicated, no question about There being no objection, the letters credits to subsidize $22 billion of school mod- ernization bonds over 10 years. These bonds that. You can’t deny that that’s the were ordered to be printed in the would enable states and local public school case. Our Tax Code is going to get more RECORD, as follows: districts, which serve more than 90 percent complicated, not less complicated. CITY WIDE ADVISORY COUNCIL ON of all students, to provide safe, modern Under current law, the Commissioner PUBLIC HOUSING, INC., schools that are well-equipped to prepare is not at the table. The Commissioner Atlanta, Georgia, March 19, 1998. students for jobs of the future. School mod- doesn’t get the opportunity to express From: Louise R. Watley. ernization bonds would target one-half of the To: Senators Paul Coverdell and Max funds to schools with the greatest number of a view, whether that view is against Cleland. low-income children and allow states to de- what the President wants to do or Re: H.R. 2646, S. 1590, and Related School Im- cide where to distribute the remaining half. against what the Congress wants to do, provement Legislation. This would ensure that rural, urban, and sub- or to just tell us what it is going to DEAR SENATORS: As a resident of the urban schools all benefit from these bonds. cost the taxpayers to comply. The bill Carver Homes Public Housing Community The provision in S. 1133 to create tax-free passed the House on November 4, and since 1955, I have witnessed generations of savings accounts to pay for private and reli- since that time 16 million Americans young African Americans grow up in one of gious schools would do nothing to improve our Nation’s poorest neighborhoods. In the teaching or learning in our public schools. It have been sent collection notices. In 1980s, I fought the epidemic of crack cocaine would also disproportionately benefit the bill passed on the floor in Novem- among our youth by working to kick drug wealthy families who already send their chil- ber, the Commissioner has a seat at the dealers out of our community. In the 1990s, I dren to private and religious schools. The table to talk to us about the cost of find myself fighting the epidemic of hope- public and parents say they want federal in- compliance, talk to us on behalf of the lessness that has resulted from the increas- vestments to improve teacher training, pro- taxpayer, what it is going to cost them ing failure of our public schools to educate mote safe schools, and establish programs to to try to take advantage of some new help all students reach high standards. Tax poor, urban children. As the Chairperson of tax loophole, new tax provision that we the City Wide Advisory Council on Public shelters, as proposed by S. 1133, would do Housing (‘‘CWAC’’) and on behalf of the nothing to help achieve these goals. are writing into law. thousands of Atlanta public housing resi- Further, this tax-free savings account does That is all I was saying, Mr. Presi- dents the Council represents, I ask you to not guarantee parents a choice of schools. dent. I am also saying that, as regards provide us with hope for improving the K–12 Private school admissions officers would de- the IRS restructuring, forget all other education of our children. cide which students to accept. An editorial about S. 1133 in the September 11, 1997 issue deadlines. The American taxpayers During the just-completed session of the have a deadline on the 15th of April. Georgia General Assembly, at the urging of of the Christian Science Monitor stated: CWAC, an overwhelming majority of the ‘‘Sounds innocent enough. But where does it Let’s conform our deadline to theirs. black caucus supported a bipartisan effort to lead? It’s a small step toward positioning Again, the distinguished chairman of strengthen Georgia’s weak charter school government behind private—most often the Finance Committee has been a laws. Because of their new appreciation for church-related—elementary and secondary leader in this. He held excellent hear- the terrible condition of public schools in education.’’ ings on this and has been very straight- NEA urges you to vote for the public our low-income neighborhoods, these rep- school modernization bond substitute and forward in doing that. But the clock is resentatives put aside political and racial against cloture and final passage of S. 1133 if ticking. Collection notices are going differences and ‘‘did the right thing.’’ Be- it contains the private school tax scheme. out. The IRS continues to operate. cause of their courage, we now can create a Sincerely, model public charter school at Carver This bill was passed in the House by a MARY ELIZABETH TEASLEY, Homes. vote of 426–4, including the vote of By way of this letter, I urge both of you to Director of Government Relations. Speaker GINGRICH, Majority Leader continue this important trend of granting Mr. KERREY addressed the Chair. ARMEY, and every single Republican in parents greater choice in the education of The PRESIDING OFFICER. The Sen- the House of Representatives. It is a their children. Please avoid the temptation ator from Nebraska is recognized. strong bill. The chairman has excellent of sacrificing the poorest children in Amer- Mr. KERREY. Mr. President, first of ideas. Bring it to the floor and offer it ica in order to protect an education bureauc- all, the distinguished Senator from as a managers’ amendment so we can racy that seems to care more about money Georgia mentioned a filibuster. All we and job security than it does about helping get it to conference and on to the are asking for on this side of the aisle President for signature—not for us, but children to read, to write and to recognize is a chance to do more. We look out in right from wrong. for the taxpayers who are going to be Please support the passage of the A+ Ac- America and see crumbling schools and subject to the power and abuse of the counts for Public and Private Schools Act as class sizes growing. We see a much big- IRS as long as we allow the current law well as stronger federal charter school legis- ger problem than you all see. So we are to continue. lation and demonstration public and private just asking for an opportunity to be school choice projects. Please allow the able to offer amendments to this bill, One additional thing. The Senator poorest children in Atlanta and Georgia to and offer them in a normal, expeditious from Georgia held up a letter from, I escape ineffective and unsafe schools. Is it fashion. guess, the NEA, National Education too much for us to ask for the same edu- Mr. COVERDELL. Is the Senator Association, talking about the dis- cational opportunities that are available to aware of the offer the majority leader tributional analysis. The cite I have those who have moved out of our commu- been using is not from the NEA; it’s nities to where better public schools are lo- made to the minority leader about 2 hours ago that we accept for debate the from the Joint Committee on Tax- cated or those who can afford to send their ation. It was the Joint Committee on children to private schools? 14 amendments that have been put for- Sincerely, ward on education—9 on your side and Taxation that provided us with that LOUISE R. WATLEY, 5 on our side? analysis. We didn’t have this analysis CWAC Chairperson. Mr. KERREY. Mr. President, I will when we marked up the bill in the Fi- let the minority leader speak to that nance Committee. Now we have the NATIONAL EDUCATION ASSOCIATION, himself. He has just come to the floor. analysis. We have an analysis that Washington, DC, March 11, 1998. In his absence, I was making the point shows what the distributional impact U.S. Senate, is going to be. Washington, DC. that you-all control the agenda on the DEAR SENATOR: On behalf of the 2.3 million floor. You decide what comes up. I ask unanimous consent that this member of the National Education Associa- I heard the chairman of the Finance memorandum be printed in the tion (NEA), we reiterate our opposition to Committee say that nothing is a higher RECORD. S2288 CONGRESSIONAL RECORD — SENATE March 19, 1998 There being no objection, the mate- higher education. The GAO has also a low-cost, disciplined approach to sav- rial was ordered to be printed in the confirmed the astronomical increase in ings. In fact, the average monthly con- RECORD, as follows: college costs. According to GAO, tui- tribution in Kentucky is just $52. It is CONGRESS OF THE UNITED STATES, tion at a four-year university rose 234 also important to note that 58 percent Washington, DC, March 2, 1998. percent between 1980–1994, while me- of the participants earn under $60,000 MEMORANDUM: dian household income rose only 84 per- per year. By exempting all interest To: Maury Passman and Nick Giordano. cent and the consumer price index rose earnings from state taxes, this pro- From: Lindy L. Paull. a mere 74 percent. A similar study con- posal rewards parents who are serious Subject: Revenue Requests. ducted by the College Board found that The attached tables are in response to your about their children’s future and who request dated January 28, 1998, for revenue tuition and fees for a four-year public are committed over the long-term to estimates of H.R. 2646 as passed by House of university rose 100.3 percent from 1987– the education of their children. Clear- Representatives and as modified by Senator 1997, while median household income ly, this benefits middle-class families. Lott’s second degree amendment as well as rose only 34.5 percent. Throughout the In 1994, I introduced the first bill to the corresponding number of taxpayers esti- 1990’s, education costs have continually make education savings exempt from mated to benefit from H.R. 2646. outstripped the gains in income. Tui- taxation. Since then I have won a cou- Additionally, you requested information regarding the utilization of educational sav- tion rates have now become the great- ple of battles, but I still haven’t won ings accounts for public versus private edu- est obstacle students face in attending the war. To win the war Congress needs cation. We estimate that approximately 38.3 college. to make education savings tax free— million returns would have dependents in Due to the high cost of education, from start to finish. The bill we are schools at the primary or secondary level in more and more families have come to considering today will do that. In 1996, 1999. We estimate that, of those eligible to rely on financial aid to meet tuition Congress took the first step in provid- contribute, approximately 2.9 million re- costs. In fact, a majority of all college ing tax relief to families investing in turns would have children in private schools, students utilize some amount of finan- these programs. In the Small Business and that approximately 2.4 million of these cial assistance. In 1995, $50 billion in fi- returns would utilize education IRAs. Job Protection Act of 1996, I was able We estimate that the proposed expansion nancial aid was available to students to include a provision that clarified the of education IRAs to include withdrawals to from federal, state, and institutional tax treatment of state-sponsored sav- cover primary and secondary education ex- sources. This was $3 billion higher than ings plans and the participants’ invest- penses would extend approximately 52 per- the previous year. A majority of this ment. This measure put an end to the cent of the tax benefit to taxpayers with increase was in the form of loans, tax uncertainty that has hampered the children in private schools. We estimate that which now make up the largest portion effectiveness of these state-sponsored the average per return tax benefit for tax- of the total federal-aid package at 57 programs and helped families who are payers with children attending private schools would be approximately $37 in tax percent. Grants, which a decade ago trying to save for their children’s’ edu- year 2002. made up 49 percent of assistance, have cation. Conversely, we estimate that, of the 38.3 been reduced to 42 percent. This shift In 1997, the Job Protection Act ex- million returns eligible, approximately 35.4 toward loans further burdens students panded the definition of ‘‘qualified edu- million returns would have dependents in and families with additional interest cation costs’’ to include room and public schools, and that approximately 10.8 costs. board, thus doubling the amount fami- million of these returns would utilize edu- This legislation is a serious effort to lies could save tax-free. In Kentucky, cation IRAs. support long-term saving. It is impor- We estimate that the proposed expansion room and board at a public institution of education IRAs would extend approxi- tant that we not forget that compound make up half of all college costs. mately 48 percent of the tax benefit to tax- interest cuts both ways. By saving, Already, we can see the result of the payers with children in public schools, with participants can keep pace with tuition tax reforms in the 105th Congress. In an average per return tax benefit of approxi- increases while putting a little away at 1996, Virginia started its plan and was mately $7 in tax year 2002. a time. By borrowing, students must overwhelmed by the positive response. Mr. McCONNELL. Mr.President, I bear added interest costs that add In its first year, the plan sold 16,111 come to the floor today to support leg- thousands to the total cost of tuition. contracts raising $260 million. This islation that addresses an important Savings will have a positive impact, by success exceeded all goals for this pro- issue facing American families today— reducing the need for students to bor- gram. While we made important gains, the education of their children. An row tens of thousands of dollars in stu- we need to finish what we have already area of particular interest to me has dent loans. This will help make need- started and fully exempt the invest- always been making a college edu- based grants, which target low-income ment income from taxation. cation more affordable. For the past families, go much further. Last month, the Finance Committee several years, I have introduced legis- This legislation also recognizes the approved legislation, sponsored by Sen- lation to provide tax incentives to fam- leadership that states have provided in ator COVERDELL and Senator ilies who save for college. helping families save for college. In the TORRICELLI, which would allow parents I have not been alone in my efforts to mid-1980s, states identified the dif- to place as much as $2,000 per year, per give parents more flexibility to choose ficulty families had in keeping pace child, in an education savings account the school which is best for their child with the rising cost of education. for kindergarten through high school and make those decisions more afford- States like Kentucky, Florida, Ohio, education. I am proud to join several of able. Under the leadership of the 105th and Michigan were the first to start my distinguished colleagues to support Congress, there has been a strong focus programs in order to help families save the A+ Education Savings Accounts on education. My colleague from Geor- for college. Nationwide more than 30 Act. I believe this measure will con- gia, Senator COVERDELL, has cham- states have established savings pro- tinue the Republican effort to move pioned the cause by introducing legis- grams, and over a dozen states are pre- the money and decision-making au- lation which would increase the paring to implement plans in the near thority out of Washington and back amount families can save for elemen- future. Today, there are nearly one where it belongs, at home with parents tary and secondary education in an million savers who have contributed and their locally-elected school boards. education IRA. I also want to commend over $3 billion in education savings. As revised by the Finance Commit- Senator ROTH, the Chairman of the Fi- The provision which I authored, which tee, these after-tax, non-government nance Committee, who has worked allows tax-free education savings in dollars would earn tax-free interest and tirelessly to help all Americans save state-sponsored savings plans for edu- could be used for expenses and tuition more for their retirement. I want to cation purposes, provides a $1.5 billion associated with any school from kin- thank the Chairman for his support of tax break for middle-class savers na- dergarten through high schools. Under these education savings initiatives, es- tionwide. In Kentucky, over 2,700 fami- this plan, parents, grandparents, and pecially his support of the state-spon- lies have established accounts, which scholarship sponsors may contribute sored savings and pre-paid programs. amount to about $6.4 million in savings up to $2,000 a year per child. The build- Mr. President, anyone with a child in Mr. President, many Kentuckians are up of interest within the account is tax college knows first-hand the expense of drawn to this program because it offers free if used for the student’s education. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2289 For students who attend private or re- we have had this legislation before us. move to bring to a close debate on H.R. 2646, ligious schools, money can be with- We have had opportunities to try to the A+ Education Act: drawn from an A+ Account to pay for come to some agreement. I have of- Trent Lott, Paul Coverdell, Jeff Sessions, Connie Mack, Bill Roth, Judd Gregg, Chris- tuition. For those who attend public fered to agree that there would be a topher Bond, Tim Hutchinson, Larry E. school, this money can be used for substitute offered by the minority. Craig, Robert F. Bennett, Mike DeWine, Jim after-school tutoring, any transpor- Then I suggested that there be a sub- Inhofe, Bill Frist, Bob Smith, Wayne Allard, tation expenses, or to purchase a home stitute and a couple of amendments on Pat Roberts. computer. Moreover, parents of special both sides. Then there was an indica- CALL OF THE ROLL needs children could use this money for tion that, well, if we could get other The PRESIDING OFFICER. By unan- lifelong education expenses, including amendments that are relevant to edu- imous consent, the quorum call is tutoring, occupational therapy, voca- cation, maybe that would be a good waived. tional training, and skill development idea. So I suggested that we go with VOTE for independent living. As you can see, the 14 education and tax-related The PRESIDING OFFICER. The this program is targeted to provide for amendments that were actually filed, 9 question is, Is it the sense of the Sen- the educational needs of all Americans. of which were minority amendments, ate that debate on H.R. 2646, the Edu- The Joint Committee on Taxation and 5 would be offered by the majority. cation Savings Act for Public and Pri- has estimated that more than 10 mil- The indications are that that is not ac- vate Schools, shall be brought to a lion families with children in public ceptable. The leader indicated it didn’t close? schools will take advantage of these include the substitute. We would be The yeas and nays are required under accounts. Moreover, it has said that 70 flexible in doing that. the rule. The clerk will call the roll. percent of the tax benefit will go to the What I am interested in doing is find- The bill clerk called the roll. families with annual incomes of $75,000 ing a way to get us to a conclusion on Mr. FORD. I announce that the Sen- and less. the very important issue of education, ator from Illinois (Ms. MOSELEY- Last year, the Coverdell-Torricelli and there is support on both sides. We BRAUN) is necessarily absent. initiative passed the House and re- have had a cloture on the motion to I further announce that, if present ceived 56 votes in this Senate. It is in proceed. Now we are going to have two and voting, the Senator from Illinois our best interest as a nation to main- votes on cloture on the bill itself. (Ms. MOSELEY-BRAUN) would vote ‘‘no.’’ tain a quality and affordable education There is a question of how long we can The yeas and nays resulted—yeas 55, system for everyone. We need to decide continue this. We have other business nays 44, as follows: on how we will redirect families’ re- we need to do. So I urge my colleagues, [Rollcall Vote No. 38 Leg.] sources in order to enable them to use if those of you that are with us on a bi- YEAS—55 their education dollars most effec- partisan basis really want the Cover- Abraham Frist McConnell tively. We can help families make their dell savings account for children in Allard Gorton Murkowski money count in a meaningful way for America, if you want prepaid tuition to Ashcroft Gramm Nickles their children’s education by ensuring be available with the tax benefits, if Bennett Grams Roberts that they have choices. At a modest you want employer education benefits Bond Grassley Roth Brownback Gregg Santorum cost, we can help families help them- to be available to your college stu- Burns Hagel Sessions selves by rewarding savings. This will dents, this is the opportunity. Campbell Hatch Shelby reduce the cost of education and will So I understand that the minority Chafee Helms Smith (NH) Coats Hutchinson Smith (OR) not necessarily burden future genera- leader wants his Members to stick with Cochran Hutchison Snowe tions with thousands of dollars in him. But this is an important issue. We Collins Inhofe Specter loans. need to get to the substance. Then, Coverdell Jeffords Stevens I urge my colleagues to support this even when we get through the cloture Craig Kempthorne Thomas D’Amato Kyl Thompson valuable legislation this year to reward vote, when we get cloture, we could DeWine Lott Thurmond those who save in order to provide a still work out an agreement for some Domenici Lugar Warner college education for their children. other amendments that would not be in Enzi Mack Mr. DASCHLE. Mr. President, how order postcloture, unless we agreed to. Faircloth McCain much time remains? But, as I told Senator DASCHLE a cou- NAYS—44 The PRESIDING OFFICER. The mi- ple of days ago, I am interested in get- Akaka Feingold Leahy nority has 37 seconds remaining. The ting this bill done. I am willing to be Baucus Feinstein Levin majority has 3 minutes 35 seconds. flexible to agree to some amendments Biden Ford Lieberman Bingaman Glenn Mikulski Mr. DASCHLE. Mr. President, I know on education. I do not want to run far Boxer Graham Moynihan a lot of people are hoping to catch air- afield. I don’t think we ought to be Breaux Harkin Murray planes. We would like to keep as close shifting amendments, or health amend- Bryan Hollings Reed to the 5:15 vote as we can. Again, I ap- Bumpers Inouye Reid ments, or things that are not related to Byrd Johnson Robb preciate the majority leader’s offer. education and taxes in this bill. There Cleland Kennedy Rockefeller Unfortunately, the offer does not in- will be other opportunities. This is not Conrad Kerrey Sarbanes clude the Democratic substitute; it the last day. We have a budget resolu- Daschle Kerry Torricelli Dodd Kohl Wellstone doesn’t include the Dodd tax credit tion coming up. We have a supple- Dorgan Landrieu Wyden amendment for child care expenses; it mental coming up. Durbin Lautenberg doesn’t include the Boxer after-school So I will be glad to work with Sen- NOT VOTING—1 programs amendment. ator DASCHLE, and will continue to Moseley-Braun That makes my point. I think we can work with him on that. work out a way in which to deal with I urge colleagues, if you support sav- The PRESIDING OFFICER. On this these amendments, but given the time, ings accounts and these other issues, vote the yeas are 55, the nays are 44. there certainly isn’t the opportunity to the time is now, vote for cloture. Three-fifths of the Senators duly cho- do that right now. So things have not I yield the floor. sen and sworn not having voted in the changed, unfortunately, to date, even CLOTURE MOTION affirmative, the motion is rejected. though I think a good-faith effort has The PRESIDING OFFICER. Under The Senate will come to order. The been made to try to accommodate the previous order, pursuant to rule majority leader. some of this. We will have to continue XXII, the Chair lays before the Senate UNANIMOUS CONSENT AGREEMENT to talk about it, and we are prepared to the pending cloture motion, which the Mr. LOTT. Mr. President, after con- do that. clerk will report. versation with the Democratic leader, I I yield the floor. The bill clerk read as follows: now ask unanimous consent that the Mr. LOTT. Mr. President, in keeping CLOTURE MOTION next cloture vote be postponed to occur with trying to start the vote on time at We, the undersigned Senators, in accord- Tuesday, March 24, at a time to be de- 5:15, I will also be brief. I want to em- ance with the provisions of rule XXII of the termined and announced at a later phasize that this is the sixth day that Standing Rules of the Senate, do hereby date. S2290 CONGRESSIONAL RECORD — SENATE March 19, 1998 The PRESIDING OFFICER. Without What these arguments fail to meas- untie this knot and we can get on to objection, it is so ordered. ure is the other information from the being a good partner for families with f Joint Tax Committee. One says 14 mil- children in schools in America. We sure lion families will use this; 70 percent of need to do it. I yield the floor. ORDER OF PROCEDURE them will be families with children in Mr. DEWINE addressed the Chair. Mr. LOTT. Now, that will be the last public schools; and in the first 4 years, The PRESIDING OFFICER. The Sen- vote of the night, then. There will not these families with, I admit, just a lit- ator from Ohio. tle tax incentive, will save voluntarily be recorded votes tomorrow, although f the Senate will be in session for debate about $5 billion. In over 8 years it will on the NATO enlargement and, hope- exceed $10 billion. That is not insignifi- FAMILY GROUP CONCERNS fully, on an amendment, with a vote on cant. That is putting billions of all new Mr. DEWINE. Mr. President, I would that amendment scheduled for prob- money behind improving education in America. like to begin today a discussion on a ably 5:30, around 5:30 on Monday. The piece of legislation that I have been reason we did this, there is a serious ef- The Joint Tax Committee says about half of that will go to students in pub- working on, and others have been fort underway, on a bipartisan basis, of lic schools and half in private. That working on, for the past 7 months. I be- those who support this legislation to may be. They have not evaluated the lieve this legislation is vitally impor- work with the leaders on both sides of fact that sponsors, churches, corpora- tant to the economic well-being of our the aisle to get a process where we can tions, friends, neighbors, and grand- country—and I hope the full Senate have a fair consideration of this bill parents can also contribute to the ac- will have an opportunity to debate this and amendments that are important to count. The value of that has yet to be bill in the very near future. the Members, and get to a conclusion interpreted. The legislation that I am referring to on the whole process by late Wednes- The other argument was that this ac- is S. 1186, the Workforce Investment day afternoon. I think that is fair. I count tends to benefit the wealthy. The Partnership Act. think that Members on both sides Joint Tax Committee says 70 percent of I have come to the floor on a number would like to do it. But I do think, as it goes to families of $75,000 or less. But of occasions in the past to stress the is the tradition in the Senate, the lead- I think you have to step back and un- immediate need to reform the Federal ers on both sides need to work with derstand that the governance of these job training system. This need in- their Members to develop a process accounts—who can use them, which is creases each day the Congress does not that they can be comfortable with. I pushing towards middle income and act. think I have shown a willingness to do lower—is identical, I repeat, identical During the numerous oversight hear- that, and I believe Senator DASCHLE is to the formula that was adopted by the ings held in the Senate over the last 3 going to be working on that with me other side and signed by the President years, we have heard that we face in and the bipartisan supporters of this for savings accounts for higher edu- this country a fragmented and duplica- legislation. Thank you for your effort. cation. There is no difference. tive maze of narrowly focused job I will see some of you tomorrow and So, I find it ironic that we would be training and job-training-related pro- the rest of you Monday afternoon. arguing about this benefiting someone grams, programs administered by nu- I yield the floor. who they do not think should receive merous Federal agencies that lack co- Several Senators addressed the the benefit when it was just fine and ordination, lack a coherent strategy to Chair. dandy when it was signed on the White provide training assistance, and lack The PRESIDING OFFICER. The Sen- House lawn last fall. It is the same. the confidence of the two key consum- ator from Georgia will be recognized as I guess the piece that is forgotten in ers who utilize these services; namely, soon as we have order in the Senate. this debate over how much is saved is those seeking the training and those The Senator from Georgia. they only focus on the interest saved, businesses seeking to hire them. f which is marginal. But they forget that Throughout the hearing process, I it is the interest on a big piece of prin- have heard that reform is needed be- MORNING BUSINESS cipal, and that for most families who cause the economic future of our coun- Mr. COVERDELL. Mr. President, I open this savings account, the net ef- try depends on a well-trained work ask unanimous consent that there now fect of their savings will be 50 to 100 force. Employers at every level are percent greater than the average fam- be a period of morning business with finding it increasingly difficult to lo- ily is saving in America today. Senators permitted to speak for up to 5 cate and attract qualified employees If nothing else was done at all, isn’t minutes each. for high-skilled, high-paying jobs, as The PRESIDING OFFICER. Without it a good idea to cause Americans to save billions of dollars? But, in fact, it well as qualified employees for entry- objection, it is so ordered. level positions. The Senator from Georgia. won’t be just saved. This money is going to go to help children. Let me just give, Mr. President, one f So far, this filibuster—and I will stop example. Right outside the Capital, right outside Washington, DC, in EDUCATION SAVINGS ACCOUNTS with this, Mr. President—this fili- buster would keep 14 million families Northern Virginia, there are 19,000 Mr. COVERDELL. Mr. President, I from opening a savings account; 20 mil- high-tech, high-paying jobs that re- thank the majority and minority lead- lion children from benefiting from it; main unfilled because individuals lack er for efforts to bring to resolution the in the first 4 years, $2.5 billion going the skills to fill them. However, even ability to deal with this education pro- behind kids in public schools; $2.5 bil- with the shortage of skilled workers in posal. I do want to make one comment lion going behind kids in private Northern Virginia, you will still hear for which there was not sufficient time schools; 1 million workers who will re- radio ads during morning drive time in the 15 minutes allotted to each. Mr. ceive benefit from their companies to urging people to move to North Caro- President, in the final minutes of the extend their education; 1 million stu- lina to fill high-tech jobs down there. last half-hour allotted to our debate dents who would have a tax advantage Ohio faces a similar problem. Man- before the vote, once again I heard the who bought prepaid tuition in 21 power, Incorporated recently released a suggestion that the amount of tax ben- States; 250,000 graduate students who poll which indicated that the Dayton efit that would accrue to these 14 mil- would now become eligible for em- area had a bright future in terms of job lion American families that the Joint ployer-paid continuing education; and growth. Forty-two percent of area com- Tax Committee feel would take advan- 500 schools won’t be built because it panies plan on hiring more manufac- tage of these education savings ac- makes new financing available for turing workers. However, while em- counts is minimal and insignificant. Of school districts across the whole land ployers plan to hire, the availability of course, I find it ironic that we would be to build schools, and we are filibuster- skilled workers to fill those jobs re- operating under Presidential veto ing that kind of growth. mains low. A Cleveland Growth Asso- threats and five filibusters for some- I am very hopeful that the work of ciation survey recently showed that thing perceived to be so insignificant. the two leaders over the weekend will employers are becoming increasingly March 19, 1998 CONGRESSIONAL RECORD — SENATE S2291 concerned about the quality and avail- It offers a reborn Federal Jobs Corps not authorize national testing. I am ability of skilled labor which may im- program. This reborn Federal Jobs opposed to national testing, and I pede their future growth plans. Corps program will linked to local would not introduce legislation that According to the Manufacturers Alli- communities for the first time in its authorizes national testing. ance’s Economic Report published in 30-year history. The next question that has been January, the mismatch between avail- This bill, in short, is a foundation, a asked is this: Does this bill, S. 1186, in- able jobs and available skilled workers road map to a much better system. crease the authority of the Federal is growing. While wages have increased Mr. President, while separate funding Government over education? for those who have the skills in de- streams will be maintained for each of Again, the answer is no, absolutely mand, many jobs still go unfilled, and the activities under this bill, in rec- not. S. 1186 eliminates numerous Fed- the median duration of unemployment ognition of their distinct function, eral requirements and mandatory set- for those who lack the skills remains States and localities will be empowered asides. It gives States and localities at recession levels. with the tools and the flexibility to im- the flexibility, the authority and the Nationwide, the number of unfilled plement real reform in order to provide funding to design their own vocation high-tech jobs is estimated to be 346,000 comprehensive services to those seek- education systems which provide aca- people. The increasing labor shortage ing assistance. demic and technological education to threatens our Nation’s economic The PRESIDING OFFICER (Mr. BEN- secondary and post-secondary students growth and our productivity. This, in NETT). The Senator’s 5 minutes have who voluntarily choose to participate. turn, threatens one of our greatest do- expired. S. 1186 streamlines vocational edu- mestic achievements—the historic wel- Mr. DEWINE. I ask unanimous con- cation, reducing the current 20 categor- fare reform. sent to extend for an additional 15 min- ical programs to four. It provides States and counties under this bill utes. States and localities more flexibility have been given the responsibility of The PRESIDING OFFICER. Without over planning, allowing the State edu- moving people from welfare to work, objection, it is so ordered. cation authority to coordinate post- and this is not an easy task. Many indi- Mr. DEWINE. However, Mr. Presi- secondary vocational education with viduals trying to make the transition dent, there is opposition to this legisla- the other programs linked to and co- to work lack the basic skills needed to tion, opposition that I, frankly, do not ordinated with S. 1186. And, Mr. Presi- obtain the available jobs even at the understand. For the most part, the op- dent, this bill eliminates the Federally entry level. position is driven by a lack of under- required State gender equity coordina- Mr. President, the Senate needs to standing of this particular piece of leg- tor position. act. We need to develop a job training islation and a fear that our schools are Let me turn to another question that system that is flexible, a system that going to be turned into ‘‘training’’ fa- has been raised. Does S. 1186 give the provides individuals who are volun- cilities that force children into career Secretary of Education authority to tarily seeking assistance with com- tracks. create national educational standards? prehensive education and training serv- This is simply not true. This is the Again, Mr. President, the answer is ices. last thing—let me repeat, the last no. Absolutely not. This Senator would We need a system that is account- thing—that this Member of the U.S. not support such legislation. I would able, assuring that the training pro- not write it. I would not vote for it. vides leads to a meaningful, long-term Senate would ever propose, would ever The Secretary of Education, under this employment. push, would ever write or, frankly, We need a system that provides con- would ever vote for. bill, is only given the authority to sumer choice, allowing individuals, not Let me answer now, if I can, the most ‘‘publish’’ the performance measures the Government, to choose their edu- common questions that have been outlined by the legislation. The Sec- cation or training provider. asked about this bill. retary of Education cannot arbitrarily And, we need a system that is driven The first question: Why is vocational mandate standards. at the State and local level, not from education included in the bill? The next question that has been Washington, DC. Let me try to answer that, and I will. asked: Does S. 1186 expand the School The Workforce Investment Partner- While vocational education mainly to Work Act? ship Act that I introduced was ap- serves secondary school students be- No. Absolutely not. School to Work proved unanimously—let me repeat, tween the 7th and 12th grades, it also is a completely separate program. Let unanimously—by the Senate Labor and provides post-high school vocational me again state it. School to Work is a Human Resources Committee in Sep- services to individuals. Those post-high completely separate program that is in tember. It represents a belief that we school services are linked to the train- no way part of or linked to S. 1186. Sec- can do better, that we can, in fact, ing system. The education services pro- tion 316(d)(2) clearly states that ‘‘funds achieve these goals. vided to 7th and 12th grade students . . . shall not be used to carry out ac- During the committee process, we are not linked to the training system. tivities that duplicate federally funded considered the concerns of various Again, this legislation will not—will activities available to youth.’’ Mr. groups who have a stake in this bill— not—replace traditional education cur- President, this provision prohibits elected officials at the State and local ricula with job training. States and localities from using S. 1186 level, the business community, family The reforms that are contained in S. funding in any way to expand School to groups, labor unions, education groups 1186 which affect secondary school stu- Work. and others. It is my belief that this bill dents will strengthen vocational edu- Let me turn now, if I could, Mr. balances all the competing concerns to cation. The students that voluntarily President, to another question that has the best of our ability. choose to participate in vocational been asked. Does S. 1186 force students Today, we are on the verge of replac- education will receive a strong aca- to choose a career path or major? ing the current system of frustration demic and technical education. The Again, Mr. President, the answer is and providing a framework for success. provisions insure that students have absolutely not. I would not be on the The Workforce Investment Partner- the choice, an option, to participate in floor arguing in favor of this legisla- ship Act embodies the principles that I vocational education. Participation in tion. I would not have spent the last have just outlined. The programs in- vocational education under our bill re- several years working on it, or any corporated in the legislation include mains voluntary. piece of legislation that would do this. job training, vocational education and This bill will not set kids on some Section 103 of this bill clearly states adult education. Additionally, it pro- kind of preordained career track. It that ‘‘No funds shall be used—(1) to re- vides strong linkages to welfare to just won’t happen. quire any secondary school student to work, the Wagner-Peyser Act, the The next question that has been choose or pursue a specific career path Older Americans Act, Vocational Reha- raised is: Does S. 1186 include national or major; and (2) to mandate that any bilitation, veterans programs, Trade testing? individual participate in a vocational Adjustment Assistance, as well as Absolutely not, it does not include education program, including a voca- other training-related programs. national testing. This legislation does tional education program that requires S2292 CONGRESSIONAL RECORD — SENATE March 19, 1998 the attainment of a federally funded out, Mr. President, is similar to the Private Industry Councils, a letter skill level or standard.’’ language contained in the welfare law. from the National Association of Coun- Mr. President, I find the idea of forc- Let me turn to another question. ties—and I might add to that that each ing students or encouraging students Does S. 1186 combine education and job one of these, Mr. President, is an en- into a career path early in their edu- training funds? dorsement of the bill—and also a letter cational life to be very wrongheaded. I Again, the answer is no. S. 1186 does from the American Vocational Associa- think it is wrong. I think children not combine education and job training tion and a letter from the State Direc- should have the opportunity to de- funds. In fact, S. 1186 retains separate tors of Vocational Technical Edu- velop, to think about what they want funding streams for vocational edu- cation. to do. How many of us, even when we cation, adult education, adult training, There being no objection, the mate- got out of high school, knew exactly and youth activities in recognition of rial was ordered to be printed in the what we were going to do? Where we their very distinct functions. RECORD, as follows: were going to go or what our major was The next question, Mr. President, I NATIONAL ASSOCIATION going to be? Or, how we were going to would like to address is this. Does S. OF MANUFACTURERS, spend our life? 1186 create a national, State, and local Washington, DC, March 16, 1998. So the idea that we track children, I workforce databank by combining the Hon. MIKE DEWINE, find abhorrent, I find to be wrong. This computer databanks of the Department U.S. Senate, Washington, DC. of Education, Department of Labor, DEAR SENATOR DEWINE: On behalf of the bill does not do that. National Association of Manufacturers, Let me turn to another question that and the Department of Health and (NAM) more than 14,000 member companies has been asked. Will participation in Human Services? and subsidiaries, and the more than 18 mil- summer or year-round activities have a Again, Mr. President, the answer is lion people they employ, we urge you to sup- negative impact on a young person’s no. S. 1186 does not establish any sort port S. 1186, the Workforce Investment Part- participation in school? of joint Federal workforce databank. nership Act when it is brought before the full Again, the answer is no. S. 1186 does However, S. 1186 does reform the De- Senate. This piece of legislation, which not remove students from the tradi- partment of Labor’s Bureau of Labor would consolidate many federal job-training tional classroom. Section 316(d)(3) of Statistics employment service infor- programs, is an important first step in ad- dressing the well documented ‘‘skill short- this bill clearly states—‘‘No funds . . . mation system that is used by all un- age’’ faced by our member companies. shall be used to provide an activity for employed Americans. Under S. 1186, un- Last year, the NAM commissioned Grant youth . . . if participation in the activ- employed Americans will be able to re- Thorton to conduct a survey of more than ity would interfere with or replace the ceive quality local data regarding job 4,500 manufacturers. The survey found that regular academic requirements of the openings so they can get back to work. more than nine in ten manufacturers are en- youth.’’ Mr. President, throughout my public countering a skill shortage in at least one Let me turn to another question. career, I have advocated giving parents job category. Moreover, over 40 percent cited Does S. 1186 transform elementary or and local communities more control a lack of basic technical skills among work- ers as a serious problem. In short, the lack of secondary schools into job training over the education of their children. qualified workers, at every level, has reached centers? This legislation does just that. a crisis point for many manufacturers. The No is the answer. Absolutely not. As for training, this legislation re- message of the Grant Thorton study is clear: While S. 1186 does establish one-stop forms the system put in place by two We must provide individuals with the skills customer service centers as the local conservative politicians. The Job they need to succeed. There is no question hub for adult training, section 311(d)(2) Training Partnership Act was written that life-long training is the key to Amer- states that ‘‘Elementary and secondary by then-Senator Dan Quayle and signed ican competitiveness and worker success in schools shall not be eligible for des- into law by President Ronald Reagan. the global economy. Unfortunately, the current federal job- ignation or certification as one-stop It is my belief, Mr. President, that by training system is a complex maze that customer service centers . . .’’ removing or reforming outdated rules serves neither trainees nor their prospective Let me turn to another question that and regulations, States and localities employers well. S. 1186 would address these has been asked. How will S. 1186 affect can move forward, transforming the issues by: consolidating many of the current private, religious, or home schools? current patchwork of programs into a programs and providing more comprehensive Mr. President, on this one the answer comprehensive system, a comprehen- services; and providing critical business is very simple. It will not affect them sive system which will better serve in- community involvement in statewide and at all. Section 104 states that ‘‘Nothing dividuals who voluntarily seek assist- local partnerships; and holding training pro- viders accountable through recognized indus- in this Act shall be construed to per- ance. try standards. mit, allow, encourage, or authorize any Mr. President, just like welfare re- The NAM strongly urges you to vote for S. Federal control over any aspect of a form, job training reform rests on the 1186, a bill that enjoys bipartisan support, private, religious, or home school . . .’’ leadership of States and localities that and to reject any weakening amendments. It Let me turn to another question. have shown innovation and initiative. is imperative that we adopt job-training con- Does S. 1186 allow workforce boards to S. 1186 is designed to encourage more solidation that includes business community implement school curricula? State and more local innovations— participation at all levels and meaningful The answer, Mr. President, is no. No, moving people from welfare to work. performance standards. Our ability to compete in an increasingly S. 1186 does not undermine the author- Mr. President, the Workforce Invest- sophisticated and technologically advanced ity of the State education authority or ment Partnership Act offers a new marketplace depends on it. Should you have local school boards. S. 1186 does not foundation, a positive framework for any questions or need further information, give any authority over school curric- success, a roadmap, if you will, to a do not hesitate to contact me or Sandy ula to workforce boards. In fact, sec- better system. If we are to achieve the Boyd, director of employment policy, at (202) tion 316(d)(1) states ‘‘No funds . . . goals we have set—a stronger economy, 637–3133. shall be used to develop or implement a better trained workforce, and true Sincerely, local school system education curric- and meaningful welfare reform—then PAUL R. HUARD, Senior Vice President, ula.’’ we need to act, and we need to act now. Policy & Communications. Another question, Mr. President, That is why, Mr. President, I am ask- that has been asked is, does S. 1186 ing for the support of my colleagues NATIONAL ASSOCIATION OF allow workforce boards to bypass the today. I am asking for your ideas, your PRIVATE INDUSTRY COUNCILS, authority of State legislatures? support, and I will continue to push for Washington, DC, March 18, 1998. Again, the answer is no. S. 1186 does immediate consideration of this bill by Hon. MIKE DEWINE, not undermine the authority of the the full Senate. Chair, Subcommittee on Employment and Train- State legislative bodies. Section 380 of Mr. President, I ask unanimous con- ing, U.S. Senate, Washington, DC. DEAR MR. CHAIRMAN: On behalf of the this bill states that ‘‘. . . Any funds re- sent that the following letters be print- Board of Directors of the National Associa- ceived by a state . . . shall be subject ed in the RECORD: a letter from the Na- tion of Private Industry Councils (NAPIC), to appropriation by the state legisla- tional Association of Manufacturers, a we are writing in support of S. 1186. ‘‘The ture . . .’’ This provision, I might point letter from the National Association of Workforce Investment Partnership Act.’’ March 19, 1998 CONGRESSIONAL RECORD — SENATE S2293

Passage of this legislation will help business AMERICAN VOCATIONAL ASSOCIATION, funds appropriated for vocational technical remain competitive by giving private sector- Alexandria, VA, March 17, 1998. education can be used only for vocational led boards the tools they need to address the Hon. SPENCER ABRAHAM, technical education activities; and a strong skill needs of employees and the training Senate Dirksen Office Building, Washington, focus on technology, accountability and needs of job seekers. DC. achieving high levels of academic and voca- Among the many excellent provisions in DEAR SENATOR: On behalf of the American tional proficiency. this bill, the NAPIC Board has identified Vocational Association (AVA) and the 38,000 As we understand it, the manager’s amend- four compelling reasons to support S. 1186. vocational-technical educators that we rep- ment will provide the opportunity for great- The legislation strengthens the private resent nationwide, I urge you to vote in er coordination among programs while assur- sector voice in the oversight of public em- favor of S. 1186, the Workforce Investment ing that vocational technical education con- ployment and training programs. The pro- Partnership Act, which may be considered in tinues to be planned for and administered by posed Workforce Investment Partnerships the full Senate this week. education officials, even under a unified will ensure that we have a market-driven The Senate Labor and Human Resources plan. While it is our preference that separate public employment and training system in Committee has worked hard to address the legislation be enacted for vocational tech- place to meet the needs of businesses and job concerns raised by vocational-technical edu- nical education, we appreciate the additional seekers alike. The enhanced role for employ- cators about this legislation last fall. We be- flexibility provided and the assurance that S. ers will result in better linkages between job lieve the managers’ amendment that will be 1186 will build on and strengthen vocational seekers and careers. offered effectively addresses the core issues technical education programs and activities It deregulates youth programs, offering we raised. As we understand it, the man- that have proven successful. communities more options to fashion local agers’ amendment includes: We wish to commend Chairman Jeffords, strategies that will help young people stay Assurances that funding appropriated for Senators DeWine, Kennedy and Wellstone for in school and prepare out-of-school youth for vocational-technical education programs their bipartisan efforts to bring forward this careers. will be directed to school-based programs This bill provides the clear balance be- very important piece of legislation. Thank and cannot be diverted to other areas. you for your support of vocational technical tween state authority and local control nec- Assurances that education governance au- essary for an employment and training sys- education and for your consideration of our thorities at the state and local levels will views. Please do not hesitate to contact me tem that is both labor-market driven and re- continue to have jurisdiction over voca- sponsive to local and state wide goals for at 202/737–0303 if NASDVTEc can be of assist- tional-technical education programs. ance during your consideration of S. 1186. economic development. A strong focus on professional development New standards for accountability will Sincerely, for vocational-technical education teachers, guarantee that programs are responsive to KIMBERLY A. GREEN, administrators, and counselors. the skill needs of employers. Executive Director. Increased emphasis on technology. We applaud the work that you and your Assurances that unified planning will ad- Mr. COCHRAN addressed the Chair. fellow Senators have done to craft this legis- here to the requirements of the vocational- The PRESIDING OFFICER. The Sen- lation. NAPIC looks forward to working with technical education provisions. ator from Mississippi. you and your colleagues in the coming Effective support for state administration months to ensure that S. 1186 moves from Mr. COCHRAN. Mr. President, I ask and leadership. unanimous consent that I may proceed the Senate floor to conference, final passage, In addition to encouraging the Senate to and presidential signature. for 10 minutes. pass this important legislation, we urge the Sincerely, Senate to accept the House structure of a The PRESIDING OFFICER. Without JUDITH BYRNE RILEY, separate bill for vocational-technical edu- objection, it is so ordered. Chair. cation, apart from job training, when S. 1186 (The remarks of Mr. COCHRAN per- ROBERT KNIGHT, goes to conference with the House version. taining to the introduction of S. 1806 President. Further, we will provide detailed comments are located in today’s RECORD under on our conference priorities, including addi- NATIONAL ASSOCIATION OF COUNTIES, ‘‘Statements on Introduced Bills and tional changes that we would like to see to Washington, DC, March 16, 1998. Joint Resolutions.’’) some of the Senate language, as the bill Hon. MIKE DEWINE, f moves towards conference. U.S. Senate, Washington, DC. We also wish to commend Chairmen Jef- DEAR SENATOR DEWINE: The National Asso- THE VERY BAD DEBT BOXSCORE ciation of Counties (NACo), representing fords and DeWine and Senators Kennedy and Wellstone for their leadership and biparti- Mr. HELMS. Mr. President, at the America’s 3,100 counties in Washington, DC, close of business yesterday, Wednes- is pleased to support S. 1186, the Workforce sanship in developing and moving this legis- Investment Partnership Act of 1998. The bill, lation. If you have any questions about our day, March 18, 1998, the federal debt which would strengthen the nation’s work- bipartisanship on S. 1186 or on any other stood at $5,537,178,813,514.71 (Five tril- force development system, will contribute matter, please do not hesitate to contact lion, five hundred thirty-seven billion, substantially to the quality of America’s Nancy O’Brien, AVA’s assistant executive di- one hundred seventy-eight million, second chance employment and training sys- rector for government relations, or me at eight hundred thirteen thousand, five tem. (703) 683–3111. Thank you for your attention to this im- hundred fourteen dollars and seventy- NACo believes that this bill will improve one cents). the types of workforce services available to portant issue. our constituents. We believe that it will put Sincerely, One year ago, March 18, 1997, the fed- in place a system of one-stop career centers BRET LOVEJOY, eral debt stood at $5,367,674,000,000 that will ensure access to a wide range of cli- Executive Director. (Five trillion, three hundred sixty- ent services. We also believe that it will seven billion, six hundred seventy-four strengthen overall accountability to ensure STATE DIRECTORS, million). that workforce development programs meet VOCATIONAL TECHNICAL EDUCATION, Five years ago, March 18, 1993, the Washington, DC, March 18, 1998. the expectations of Congress, the Adminis- federal debt stood at $4,215,542,000,000 tration, governors, county elected officials DEAR SENATOR: The National Association and clients. Finally, NACo is of the opinion of State Directors of Vocational Technical (Four trillion, two hundred fifteen bil- that S. 1186 will help ensure a highly skilled Education Consortium (NASDVTEc) rep- lion, five hundred forty-two million). workforce. resents the state and territory leaders re- Ten years ago, March 18, 1988, the The Workforce Investment Partnership sponsible for the nation’s vocational tech- federal debt stood at $2,481,414,000,000 Act effectively draws upon the positive expe- nical education system. On NASDVTEc’s be- (Two trillion, four hundred eighty-one riences of the past and of our hopes for the half, I write to share our support for the Sen- billion, four hundred fourteen million). ate’s efforts to enact legislation that author- future to ensure that this nation has the Fifteen years ago, March 18, 1983, the kind of workforce it will need to compete in izes a federal investment in vocational tech- the global economy and maintain our stand- nical education. S. 1186, the Workforce In- federal debt stood at $1,227,793,000,000 ard of living. vestment Partnership Act of 1998, holds (One trillion, two hundred twenty- We applaud the work that you and your much potential for creating expanded and seven billion, seven hundred ninety- fellow Senators have done in crafting this improved opportunities for our nation’s stu- three million) which reflects a debt in- legislation, and look forward to continue dents by providing access to quality voca- crease of more than $4 trillion— working with you in the coming months to tional technical education. We urge you to $4,303,380,813,514.71 (Four trillion, three ensure that S. 1186 moves from the Senate support S. 1186, the Workforce Investment hundred and three billion, three hun- floor to conference, final passage and presi- Partnership Act of 1998. dential signature. NASDVTEc is very supportive of many of dred eighty million, eight hundred Sincerely, S. 1186’s features including: a commitment thirteen thousand, five hundred four- RANDY JOHNSON, PRESIDENT, NACO, to a strong state role; adequate state-level teen dollars and seventy-one cents) Hennepin County Commissioner. resources to effect change; assurances that during the past 25 years. S2294 CONGRESSIONAL RECORD — SENATE March 19, 1998 REPORT OF A DRAFT OF PRO- Service Corps programs, and Learn and the age and income guidelines for Na- POSED LEGISLATION ENTITLED Service America programs and have tional Senior Service Corps partici- ‘‘THE NATIONAL AND COMMU- concluded that national service yields pants, expanding the pool of older NITY SERVICE AMENDMENTS a positive return on investment. The Americans who can perform results- ACT OF 1998’’—MESSAGE FROM proposed legislation that I am trans- oriented service in their communities; THE PRESIDENT—PM 113 mitting builds on our experiences with and it will simplify the administration The PRESIDING OFFICER laid be- national service to date and improves of Learn and Serve America, so States fore the Senate the following message national service programs in four ways: and communities will more easily be from the President of the United (1) by codifying agreements with the able to provide opportunities for stu- States, together with an accompanying Congress and others to reduce costs dents to learn through service in their report; which was referred to the Com- and streamline national service; (2) schools and neighborhoods. mittee on Labor and Human Resources. strengthening partnerships with tradi- This past January, I had the oppor- tional volunteer organizations; (3) in- tunity to honor the memory of Dr. To the Congress of the United States: creasing States’ flexibility to admin- Martin Luther King, Jr., by engaging I am pleased to transmit for your im- ister national service programs; and (4) in service on the holiday commemorat- mediate consideration and enactment expanding opportunities for Americans ing his birth. I joined 65 AmeriCorps the ‘‘National and Community Service to serve. members and more than 300 commu- Amendments Act of 1998.’’ This legisla- Since the enactment of the National nity voluteers in repairing and repaint- tive proposal extends and amends na- and Community Service Trust Act of ing Cardozo High School in the Shaw tional service law, including the Na- 1993, and particularly since 1995, my neighborhood of Washington, D.C. tional and Community Service Act of Administration has worked with con- Thirty-one years ago, Dr. King came to 1990 and the Domestic Volunteer Serv- structive critics of national service to that very neighborhood and urged the ice Act of 1973. It builds upon the long, address their concerns and improve the people there to engage in citizen serv- bipartisan tradition of service in our overall program. This proposed legisla- ice to rebuild their lives, their commu- country, which was renewed in 1993 tion continues that process by reducing nity, and their future. That is what when I signed the National and Com- the Corporation’s average budgeted those national service participants, munity Service Trust Act creating the cost per AmeriCorps member, repealing and the thousands more who were par- Corporation for National Service. authority for redundant or obsolete na- ticipating in similar projects across Service to one’s community is an in- tional service programs, and making the country, were doing—honoring the tegral part of what it means to be an other improvements in the efficiency legacy of Dr. King and answering the American. The Presidents’ Summit for of national service programs. high calling of citizenship in this coun- America’s Future held in Philadelphia National service has never been a try. last April reinforced the role of pro- substitute for the contributions made Each of the more than 500,000 partici- grams supported by the Corporation for by the millions of Americans who vol- pants in the programs of the National National Service as key vehicles to unteer their time to worthy causes Senior Service Corps and the 750,000 provide young people with the re- every year. Rather, as leaders of volun- participants in programs supported by sources to maximize their potential teer organizations have often ex- Learn and Serve America, and every and give back to their communities. pressed, national service has proven AmeriCorps member answers that high Citizen service is also at the heart of that the presence of full-time, trained calling of citizenship when they make our efforts to prepare America for the service participants enhances tremen- and fulfill a commitment to service in 21st century, as we work to ensure that dously the effectiveness of volunteers. their communities. This proposed leg- all Americans have the opportunity to This proposed legislation will strength- islation builds on the successes of these make the most of their own lives and en the partnership between the na- programs and improves them for the to help those in need. tional service programs and traditional future. My Administration’s most important volunteer organizations; codify the Na- I urge the Congress to give this pro- contribution to citizen service is tional Service Scholarship program posed legislation prompt and favorable AmeriCorps, the national service pro- honoring exemplary service by high consideration. gram that already has given more than school students; and expand the WILLIAM J. CLINTON. 100,000 young Americans the oppor- AmeriCorps Challenge Scholarships, THE WHITE HOUSE, March 19, 1998. tunity to serve their country. By tying through which national service partici- f opportunity to responsibility, we have pants can access education awards. It given them the chance to serve and, in also will authorize appropriations for MESSAGES FROM THE HOUSE return, earn money for post-secondary the Points of Light Foundation At 11:54 a.m., a message from the education. In community after commu- through the year 2002. House of Representatives, delivered by nity, AmeriCorps members have proven The National and Community Serv- Ms. Goetz, one of its reading clerks an- that service can help us meet our most ice Trust Act of 1993 explicitly con- nounced that the House has passed the pressing social needs. For example, in ceived of national service as a Federal- following bills, in which it requests the Simpson County, Kentucky, Ameri- State partnership. The Act vested sig- concurrence of the Senate: Corps members helped second graders nificant authority in bipartisan State H.R. 2294. An act to make improvements in jump three grade levels in reading. In Commissions appointed by the Gov- the operation and administration of the Fed- Boys and Girls Clubs, AmeriCorps ernors. I promised that we would accel- eral courts, and for other purposes. members are mentors for at-risk young erate the process of devolution as the H.R. 2696. An act to amend title 17, United people. Habitat For Humanity relies newly created State Commissions ex- States Code, to provide for protection of cer- upon AmeriCorps members to recruit panded their capacities. This proposed tain original designs. more volunteers and build more legislation fulfills that promise in a va- H.R. 3117. An act to reauthorize the United States Commission on Civil Rights, and for houses. In communities beset by floods, riety of ways, including providing au- other purposes. tornadoes, and hurricanes, AmeriCorps thority for the Corporation for Na- members have helped to rebuild lives tional Service to enter into Service The message also announced that the and restore hope. AmeriCorps members Collaboration Agreements with Gov- House has agreed to the following con- are helping to mobilize thousands of ernors to provide a means for coordi- current resolutions, in which it re- college students from more than 800 nating the planning and administra- quests the concurrence of the Senate: college campuses in our America Reads tion of national service programs in a H. Con. Res. 152. Concurrent resolution ex- program. In all of these efforts, State. pressing the sense of the Congress that all This proposed legislation will also parties to the multiparty peace talks regard- AmeriCorps brings together people of ing Northern Ireland should condemn vio- every background to work toward com- provide additional service opportuni- lence and fully integrate internationally rec- mon goals. ties. By reducing the cost per ognize human rights standards and ade- Independent evaluators have re- AmeriCorps member, it will enable quately address outstanding human rights viewed AmeriCorps, National Senior more people to serve; it will broaden violations as part of the peace process. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2295 H. Con. Res. 235. Concurrent resolution Brig. Gen. Richard E. Brown III, 8999 The following-named officers for appoint- calling for an end to the violent repression of Brig. Gen. John G. Campbell, 2822 ment in the United States Marine Corps to the legitimate rights of the people of Kosova. Brig. Gen. Bruce A. Carlson, 4082 the grade indicated under title 10, U.S.C., Brig. Gen. Robert J. Courter, Jr., 9691 section 624: At 2:13 p.m., a message from the Brig. Gen. Daniel M. Dick. 7629 To be brigadier general House of Representatives, delivered by Brig. Gen. Paul V. Hester, 2071 Col. Michael J. Aguilar, 3724 Ms. Goetz, one of its reading clerks, an- Brig. Gen. Leslie F. Kenne, 0741 Col. James F. Amos, 1550 nounced that the House has passed the Brig. Gen. Tiiu Kera, 6343 Col. John G. Castellaw, 2524 Brig. Gen. Donald A. LaMontagne, 3494 Col. Timothy E. Donovan, 4843 following bill, in which it requests the Brig. Gen. David F. MacGhee, 3517 concurrence of the Senate: Col. James M. Feigley, 1052 Brig. Gen. Timothy P. Malishenko, 3563 Col. Emerson N. Gardner, Jr., 0157 H.R. 2870. An act to amend the Foreign As- Brig. Gen. Glen W. Moorhead III, 6124 Col. Stephen T. Johnson, 0874 sistance Act of 1961 to facilitate protection Brig. Gen. Harry D. Raduege, Jr., 9435 Col. James N. Mattis, 7981 of tropical forests through debt reduction Brig. Gen. Leonard M. Randolph, Jr., 3223 Col. Gordon C. Nash, 4684 with developing countries with tropical for- Brig. Gen. James E. Sandstrom, 8096 Col. Robert M. Shea, 3652 ests. Brig. Gen. Lance L. Smith, 7660 Col. Keith J. Stalder, 5748 f Brig. Gen. Charles F. Wald, 1222 Col. Joseph F. Weber, 1316 Brig. Gen. Tome H. Walters, Jr., 3355 The following-named officer for appoint- MEASURES REFERRED Brig. Gen. Herbert M. Ward, 0157 ment in the United States Navy to the grade The following bills were read the first Brig. Gen. Joseph H. Wehrle, Jr., 6021 indicated while assigned to a position of im- Brig. Gen. William Welser, III, 4623 portance and responsibility under title 10 and second times by unanimous con- Brig. Gen. Michael E. Zettler, 3436 sent and referred as indicated: U.S.C., section 601: The following Air National Guard of the To be vice admiral H.R. 2696. An act to amend title 17, United United States officer for appointment in the States Code, to provide for protection of cer- Reserve of the Air Force to the grade indi- Rear Adm. Edmund P. Giambastiani, Jr., tain original designs; to the Committee on cated under title 10, U.S.C., section 12203: 8318 the Judiciary. To be brigadier general (The above nominations were re- H.R. 2870. An act to amend the Foreign As- Col. Frederick H. Forster, 6694 ported with the recommendation that sistance Act of 1961 to facilitate protection they be confirmed.) of tropical forests through debt reduction The following-named officers for appoint- Mr. THURMOND. Mr. President, for with developing countries with tropical for- ment in the Reserve of the Air Force to the grade indicated under title 10, U.S.C., section the Committee on Armed Services, I ests; to the Committee on Foreign Relations. report favorably 6 nomination lists in H.R. 3117. An act to reauthorize the United 12203: States Commission on Civil Rights, and for To be major general the Air Force, Army, and Marine Corps which were printed in full in the CON- other purposes; to the Committee on the Ju- Brig.. Gen. Louise C. Ferraro, Jr., 2366 diciary. Brig.. Gen. Danny A. Hogan, 6985 GRESSIONAL RECORDs of February 10 and 24, March 3 and 6, 1998, and ask The following concurrent resolutions Brig.. Gen. Robert B. Stephens, 2399 unanimous consent, to save the ex- were read and referred as indicated: Brig.. Gen. Geoffrey P. Wiedeman, Jr., 2483 Brig.. Gen. Robert J. Winner, 3113 pense of reprinting on the Executive H. Con. Res. 152. Concurrent resolution ex- To be brigadier general Calendar, that these nominations lie at pressing the sense of the Congress that all the Secretary’s desk for the informa- parties to the multiparty peace talks regard- Col. Frederick H. Forster, 6694 ing Northern Ireland should condemn vio- The following-named officers for appoint- tion of Senators. lence and fully integrate internationally rec- ment in the Reserve of the Air Force to the The PRESIDING OFFICER. Without ognized human rights standards and ade- grade indicated under title 10, U.S.C., section objection, it is so ordered. quately address outstanding human rights 12203: (The nominations ordered to lie on violations as part of the peace process; to the To be major general the Secretary’s desk were printed in Committee on Foreign Relations. Brig. Gen. Louis C. Ferraro, Jr., 2366 the RECORDs of February 10, 1998, Feb- H. Con. Res. 235. Concurrent resolution Brig. Gen. Danny A. Hogan, 6985 ruary 24, 1998, March 3, 1998 and March calling for an end to the violent repression of Brig. Gen. Robert B. Stephens, 2399 6, 1998, at the end of the Senate pro- the legitimate rights of the people of Kosova; Brig. Gen. Geoffrey P. Wiedeman, Jr., 2483 ceedings.) to the Committee on Foreign Relations. Brig. Gen. Robert J. Winner, 3113 In the Air Force nominations beginning f To be brigadier general Richard A. Allnutt III, and ending Diane A. Zipprich, which nominations were received Col. Marvin J. Barry, 3766 REPORTS OF COMMITTEES by the Senate and appeared in the Congres- Col. Bruce M. Carskadon, 0890 sional Record of February 10, 1998. The following reports of committees Col. John M. Danahy, 2107 were submitted: In the Army nominations beginning Rich- Col. John D. Dorris, 4306 ard W. Meyers, and ending Charles M. Sines, By Mr. HATCH, from the Committee on Col. Robert E. Duignan, 8409 which nominations were received by the Sen- the Judiciary, without amendment and with Col. Sally Ann Eaves, 5962 ate and appeared in the Congressional a preamble: Col. Bobby L. Efferson, 5676 Record of February 24, 1998. S. Res. 155. A resolution designating April Col. William F. Gordon, 8896 In the Marine Corps nominations begin- 6 of each year as ‘‘National Tartan Day’’ to Col. Joseph G. Lynch, 4963 ning Raymond Adamiec, and ending Gerald recognize the outstanding achievements and Col. Mark V. Rosenker, 1990 A. Yingling, Jr., which nominations were re- contributions made by Scottish Americans Col. Ronald M. Sega, 0560 ceived by the Senate and appeared in the to the United States. Col. Stephen A. Smith, 9174 Congressional Record of February 24, 1998. S. Res. 198. A resolution designating April Col. Edwin B. Tatum, 7680 In the Marine Corps nominations begin- 1, 1998, as ‘‘National Breast Cancer Sur- Col. Kathy E. Thomas, 0940 ning Anthony P. Alfano, and ending James vivors’ Day.’’ The following United States Army Reserve R. Wenzel, which nominations were received by the Senate and appeared in the Congres- f officer for promotion in the Reserve of the Army to the grade indicated under title 10, sional Record of February 24, 1998. EXECUTIVE REPORTS OF U.S.C., sections, 14101, 14315 and 12203(a): In the Army nominations beginning Fred- erick P. Hammersen, and ending Thomas M. COMMITTEES To be brigadier general Walton, which nominations were received by The following executive reports of Col. Michael W. Beasley, 5949 the Senate and appeared in the Congres- committees were submitted: The following-named officer for appoint- sional Record of March 3, 1998. ment in the United States Army to the grade In the Army nominations beginning James By Mr. THURMOND, from the Committee indicated under title 10, U.S.C., section 624: R. Agar, II, and ending Everett F. Yates, on Armed Services: To be major general which nominations were received by the Sen- The following-named officers for appoint- ate and appeared in the Congressional ment in the United States Air Force to the Brig. Gen. John S. Parker, 5626 Record of March 6, 1998. grade indicated under title 10, U.S.C. section The following-named officer for appoint- By Mr. HATCH, from the Committee on 624: ment as The Chief of Chaplains, United the Judiciary: To be major general States Army and for appointment to the Richard A. Paez, of California, to be United States Circuit Judge for the Ninth Circuit. Brig. Gen. James E. Andrews, 8141 grade indicated under title 10, U.S.C., section Brig. Gen. Claude M. Bolton, Jr., 5880 3036: (The above nomination was reported Brig. Gen. Robert J. Boots, 9226 To be major general with the recommendation that he be Brig. Gen. John W. Brooks, 8909 Brig. Gen. Gaylord T. Gunhus, 7632 confirmed.) S2296 CONGRESSIONAL RECORD — SENATE March 19, 1998 INTRODUCTION OF BILLS AND STATEMENTS ON INTRODUCED traditional and ceremonial uses of to- JOINT RESOLUTIONS BILLS AND JOINT RESOLUTIONS bacco by tribal members; respects trib- al sovereignty and authority to make The following bills and joint resolu- By Mr. CAMPBELL: and enforce laws on Indian lands; in- tions were introduced, read the first S. 1797. A bill to reduce tobacco use cludes a commitment to provide the and second time by unanimous con- by Native Americans and to make the necessary licensing and enforcement sent, and referred as indicated: proposed tobacco settlement applicable to tobacco-related activities on Indian funding to tribal governments that is By Mr. CAMPBELL: lands; to the Committee on Indian Af- consistent with allocations the states S. 1797. A bill to reduce tobacco use by Na- will receive; and a commitment to en- tive Americans and to make the proposed to- fairs. THE REDUCTION IN TOBACCO USE AND REGULA- sure sufficient funding to treat to- bacco settlement applicable to tobacco-relat- bacco-related illnesses and reduce the ed activities on Indian lands; to the Commit- TION OF TOBACCO PRODUCTS IN INDIAN COUN- tee on Indian Affairs. TRY ACT OF 1998 epidemic of tobacco abuse in Indian By Mrs. FEINSTEIN: Mr. CAMPBELL. Mr. President, I am country. S. 1798. A bill to provide for an alternative pleased today to introduce the ‘‘Reduc- I am hopeful that if a comprehensive penalty procedure for States that fail to tion in Tobacco Use and Regulation of agreement is enacted, the principles meet Federal child support data processing Tobacco Products in Indian Country and provisions contained in this bill requirements; to the Committee on Finance. Act of 1998’’. are included to make the agreement By Mr. MCCAIN: After many hard months of negotia- applicable to tobacco-related activities S. 1799. A bill to amend section 121 of the tions between the states Attorneys on Indian lands, to protect the tradi- Internal Revenue Code of 1986 to provide that General, class action plaintiffs, and the tional use of tobacco by Native Ameri- a member of the Armed Forces of the United tobacco representatives, in June, 1997, cans, and preserve tribal authority to States shall be treated as using a principal a proposed settlement was agreed to. make and enforce laws to govern them- residence while away from home on extended The proposed agreement tries to ac- selves. active duty; to the Committee on Finance. Mr. President, I ask unanimous con- By Mr. GLENN (for himself and Mr. complish a number of goals: avoiding sent that the text of the bill be printed DEWINE): costly and lengthy lawsuits that will enrich the trial lawyers; creating a in the RECORD. S. 1800. A bill to designate the Federal There being no objection, the bill was building and United States courthouse lo- multi-billion pot of money to be used cated at 85 Marconi Boulevard in Columbus, by the states and the tribes for to- ordered to be printed in the RECORD, as Ohio, as the ‘‘Joseph P. Kinneary United bacco-related health problems; and im- follows: States Courthouse’’; to the Committee on plementing a comprehensive set of ad- S. 1797 Environment and Public Works. vertising limits that the companies Be it enacted by the Senate and House of Rep- By Mr. LAUTENBERG: would agree to voluntarily. resentatives of the United States of America in S. 1801. A bill to suspend until December In reviewing the proposed settlement Congress assembled, 31, 2000, the duty on Benzenepropanal, 4-(1,1- agreement, the objective of the Com- SECTION 1. SHORT TITLE. Dimethylethyl)-Methyl-; to the Committee mittee on Indian Affairs was to review This Act may be cited as the ‘‘Reduction in Tobacco Use and Regulation of Tobacco on Finance. the matters under its jurisdiction and By Mr. MCCAIN (for himself, Mr. HOL- Products in Indian Country Act of 1998’’. LINGS, Mrs. HUTCHISON, Mr. INOUYE, make recommendations on how to im- SEC. 2. FINDINGS AND PURPOSES. Mr. LOTT, Mr. FORD, and Mr. STE- plement that agreement on Indian (a) FINDINGS.—Congress finds that— VENS): lands. (1) Native Americans have used tobacco S. 1802. A bill to authorize appropriations After two Committee hearings I am products for recreational, ceremonial, and for the Surface Transportation Board for fis- confident that as to the Indian issues, traditional purposes for centuries; cal years 1999, 2000, and 2001; to the Commit- we have crafted a bill that addresses (2) the sale, distribution, marketing, adver- tee on Commerce, Science, and Transpor- the concerns of both the tribes and the tising, and use of tobacco products are ac- tation. parties that seek enactment of the pro- tivities substantially affecting commerce By Mr. ROBB: posed agreement. among the States and the Indian tribes and, S. 1803. A bill to reform agricultural credit In its hearings the Committee heard as such, have a substantial effect on the economy of the United States; programs of the Department of Agriculture, testimony on the use of tobacco prod- and for other purposes; to the Committee on (3) the sale, distribution, marketing, adver- ucts by Native Americans and how the tising, and use of tobacco products are ac- Agriculture, Nutrition, and Forestry. proposed tobacco settlement would im- By Mr. KENNEDY: tivities substantially affecting commerce by pact tobacco-related activities on In- virtue of the health care-related and other S. 1804. A bill to amend title XXVII of the dian lands. costs that Federal, State, and tribal govern- Public Health Service Act to limit the mental authorities have incurred because of amount of any increase in the payments re- Even though smoking is on the de- the usage of tobacco products; quired by health insurance issuers for health cline in other segments of American (4) the sale, distribution, marketing, adver- insurance coverage provided to individuals society, available statistics show that tising, and use of tobacco products on Indian who are guaranteed an offer of enrollment smoking and use of smokeless tobacco lands are activities which materially and under individual health insurance coverage in Native American communities is at substantially affect the health and welfare of relative to other individuals who purchase crisis levels. The percentage of Native members of Indian tribes and tribal organi- health insurance coverage; to the Committee American kids who use tobacco is zations; on Labor and Human Resources. breathtaking—in some parts of the (5) the use of tobacco products is a serious By Mr. KENNEDY (for himself, Mr. country 80% of Indian high school stu- ad growing public health problem, with im- DODD, Mr. DASCHLE, Mr. INOUYE, Mr. dents use tobacco products. pacts on the health and well-being of Native BUMPERS, Mr. LEAHY, Mr. MOYNIHAN, Further, the health problems Native Americans; Mr. SARBANES, Mr. LEVIN, Mr. LAU- (6) the use of tobacco products in Native TENBERG, Mr. HARKIN, Mr. KERRY, Mr. Americans face such as alcoholism and communities is particularly serious with ROCKEFELLER, Ms. MIKULSKI, Mr. diabetes are compounded by the use of staggering rates of smoking in Native Amer- WELLSTONE, Mrs. BOXER, Mr. FEIN- tobacco products. Vigorous efforts need ican communities; GOLD, Mrs. FEINSTEIN, Ms. MOSELEY- to be made at the federal and tribal (7) enhancing existing legal mechanisms BRAUN, Mr. DURBIN, Mr. REED, and levels to prohibit access to tobacco and for the protection of public health are inad- Mr. TORRICELLI): reduce youth smoking in Native com- equate to deal effectively with the use of to- S. 1805. A bill to amend the Fair Labor munities. bacco products; and Standards Act of 1938 to increase the Federal After hearing the concerns and rec- (8) enhancing prevention, research, and minimum wage; to the Committee on Labor ommendations regarding the proposed treatment resources with respect to tobacco and Human Resources. settlement by Indian tribal leaders, will allow Indian tribes to address more ef- By Mr. COCHRAN (for himself and Mr. state Attorneys General, federal health fectively the problems associated with the INOUYE): and legal experts, and Indian legal use of tobacco products. S. 1806. A bill to state the policy of the (b) PURPOSES.—It is the purpose of this Act United States regarding the deployment of a scholars, a bill was crafted which ad- to— missile defense system capable of defending dresses the major issues involved in to- (1) provide for the implementation of any the territory of the United States against bacco regulation on Indian lands. national tobacco legislation with respect to limited ballistic missile attack; to the Com- The legislation I am introducing the regulation of tobacco products and other mittee on Armed Services. today includes legal protections for tobacco-related activities on Indian lands; March 19, 1998 CONGRESSIONAL RECORD — SENATE S2297 (2) recognize the historic Native American makes a fraudulent conveyance after the bacco or tobacco products necessary to ful- traditional and ceremonial use of tobacco date of enactment of this Act, or any Act to fill the religious, ceremonial, or traditional products, and to preserve and protect the amend the Federal Food, Drug, and Cosmetic purposes of an Indian tribe or the members cultural, religious, and ceremonial uses of Act (21 U.S.C. 321 et seq.) in order to give ef- of such tribe, and shall not be construed to tobacco by members of Indian tribes; fect to the national tobacco settlement permit the general marketing of tobacco or (3) recognize and respect Indian tribal sov- agreement of June 20, 1997, or a transfer that tobacco products in a manner that is not in ereignty and tribal authority to make and would otherwise be voidable under chapter 7 compliance with chapter IX of the Federal enforce laws regarding the regulation of to- of title 11, United States Code, but only to Food, Drug, and Cosmetic Act. bacco distributors and tobacco products on the extent of the interest or obligation (3) LIMITATION.—Nothing in this Act (or Indian lands; transferred. any Act enacted to give effect to the na- (4) ensure that the necessary funding is (B) LIMITATION.—The term ‘‘manufacturer’’ tional tobacco settlement agreement of June made available to tribal governments for li- shall not include a parent or affiliate of a 20, 1997) shall be construed to permit an In- censing and enforcement of tobacco distribu- person who manufactures tobacco products dian tribe or member of such a tribe to ac- tors and tobacco products on Indian lands; unless such parent or affiliate itself is a per- quire, possess, use, or transfer any tobacco (5) ensure that the necessary funding is son described in subparagraphs (A). or tobacco product in violation of section made available to tribal governments to (8) PERSON.—The term ‘‘person’’ means an 2341 of title 18, United States Code, with re- treat tobacco-related illnesses and alleviate individual, partnership, corporation, or any spect to the transportation of contraband the epidemic of tobacco abuse by Native other business or legal entity. cigarettes. Americans; (9) POINT OF SALE.—The term ‘‘point of (c) PAYMENTS TO TOBACCO TRUST FUND.— (6) reduce the marketing of tobacco prod- sale’’ means any location at which an indi- Any Indian tribe or tribal organization that ucts to, and reduce the rate of smoking by, vidual can purchase or otherwise obtain to- engages in the manufacture of tobacco prod- young Native Americans; and bacco products for personal, non-traditional ucts shall be subject to liability for any fee (7) decrease tobacco use by Native Ameri- consumption. payments that are levied on other manufac- cans by encouraging public education and (10) RETAILER.—The term ‘‘retailer’’ means turers for purposes of any tobacco trust fund. smoking cessation programs. any person who sells tobacco products to in- Any Indian tribe or tribal organization that dividuals for personal consumption, or who SEC. 3. DEFINITIONS. does not pay such fees shall be considered a operates a facility where vending machines In this Act: nonparticipating manufacturer and shall be or self-service displays are permitted. (1) COMMERCE.—The term ‘‘commerce’’ subject to surcharges made applicable to (11) SALE.—The term ‘‘sale’’ includes the means— such nonparticipating manufacturers under selling, providing samples of, or otherwise (A) commerce between any State, Indian any Act enacted to give effect to the na- making tobacco products available for per- tribe, or tribal organization, the District of tional tobacco settlement agreement of June Columbia, the Commonwealth of Puerto sonal consumption in any place or location 20, 1997). Rico, the Virgin Islands, American Samoa, as permitted under law. (d) APPLICATION OF FEDERAL FOOD, DRUG, the Mariana Islands, or any territory or pos- (12) SECRETARY.—Unless otherwise pro- session of the United States; vided, the term ‘‘Secretary’’ means the Sec- AND COSMETIC ACT REQUIREMENTS.— (B) commerce between points in any State, retary of Health and Human Services. (1) IN GENERAL.—The Secretary, in con- Indian tribe, or tribal organization, the Dis- (13) STATE.—The term ‘‘State’’ includes the sultation with the Secretary of Interior, trict of Columbia, the Commonwealth of several States, the District of Columbia, the shall promulgate regulations to provide for Puerto Rico, the Virgin Islands, America Commonwealth of Puerto Rico, the Virgin the waiver of any requirement of the Food, Samoa, the Mariana Islands, or any territory Islands, America Samoa, the Mariana Is- Drug, and Cosmetic Act (21 U.S.C. 321 et seq.) or possession of the United States; and lands, or any territory or possession of the with respect to tobacco products manufac- (C) commerce wholly within the District of United States. Such term also includes any tured, distributed, or sold within the exte- Columbia, the Commonwealth of Puerto political subdivision of any State. rior boundaries of Indian reservations or on Rico, the Virgin Islands, American Samoa, (14) TOBACCO.—The term ‘‘tobacco’’ means lands within the jurisdiction of an Indian the Mariana Islands, or any territory or pos- tobacco in its unmanufactured form. tribe as appropriate to comply with this sec- session of the United States. (15) TOBACCO PRODUCT.—The term ‘‘tobacco tion. (2) CONSENT DECREE.—The term ‘‘consent product’’ means cigarettes, cigarette to- (2) JURISDICTION.—With respect to tobacco- decree’’ means a consent decree executed by bacco, and smokeless tobacco. related activities that take place within the a 1 or more participating manufacturers and (16) TOBACCO TRUST FUND.—The term ‘‘to- exterior boundaries of Indian reservations or a State or an Indian tribe or tribal organiza- bacco trust fund’’ means any national to- on lands within the jurisdiction of an Indian tion pursuant to the provisions of any Act bacco settlement trust fund established tribe, the responsibility for enforcing the enacted in order to give effect to the na- under any Act enacted in order to give effect regulations promulgated pursuant to para- tional tobacco settlement agreement of June to the national tobacco settlement agree- graph (1) shall be vested in— 20, 1997. ment of June 20, 1997. (A) the Indian tribe or the tribal organiza- (3) COURT.—The term ‘‘court’’ means any (17) TRIBAL ORGANIZATION.—The term ‘‘trib- tion involved; judicial or agency court, forum, or tribunal al organization’’ has the meaning given such (B) the State within which the lands of the within the United States, including any Fed- term in section 4(e) of the Indian Self Deter- Indian tribe or tribal organization are lo- eral, State, or tribal court. mination and Education Assistance Act (25 cated, pursuant to a voluntary cooperative (4) DISTRIBUTOR.—The term ‘‘distributor’’ U.S.C. 45Ob(e)). agreement entered into by the State and the means any person who furthers the distribu- (18) VOLUNTARY COOPERATIVE AGREEMENT.— Indian tribe or tribal organization; or tion of tobacco or tobacco products, whether The term ‘‘voluntary cooperative agree- (C) the Secretary. domestic or imported, at any point from the ment’’ means any agreement, contract, com- (3) ELIGIBILITY FOR ASSISTANCE.—Under the original place of manufacture to the person pact, memorandum of understanding, or regulations promulgated under paragraph who sells or distributes the product to indi- similar agreement. (1), the Secretary, in consultation with the Secretary of the Interior, shall provide as- viduals for second consumption. Such term SEC. 4. APPLICATION OF TOBACCO-RELATED shall not include common carriers. PROVISIONS TO NATIVE AMERICANS. sistance to an Indian tribe or tribal organi- (5) INDIAN LANDS.—The term ‘‘Indian (a) IN GENERAL.—The provisions of any Act zation in meeting and enforcing the require- lands’’ has the meaning given the term ‘‘In- enacted in order to give effect to the na- ments under such regulations if— dian country’’ by section 1151 of title 18, tional tobacco settlement agreement of June (A) the tribe or tribal organization has a United States Code, and includes lands under 20, 1997 shall apply to the manufacture, dis- governing body that has powers and carries the jurisdiction of an Indian tribe or tribal tribution, or sale of tobacco or tobacco prod- out duties that are similar to the powers and organization. ucts within the exterior boundaries of Indian duties of State or local governments; (6) INDIAN TRIBE.—The term ‘‘Indian tribe’’ reservations or on lands within the jurisdic- (B) the functions to be exercised through has the meaning given such term in section tion of an Indian tribe or tribal organization. the use of such assistance relate to activities 4(e) of the Indian Self Determination and (b) TRADITIONAL USE EXCEPTION.— conducted within the exterior boundaries of Education Assistance Act (25 U.S.C. 450b(e)). (1) IN GENERAL.—In recognition of the reli- Indian reservations or on lands within the (7) MANUFACTURER.— gious, ceremonial, and traditional uses of to- jurisdiction of the tribe or tribal organiza- (A) IN GENERAL.—The term ‘‘manufac- bacco and tobacco products by Indian tribes tion involved; and turer’’ means— and the members of such tribes, nothing in (C) the tribe or tribal organization is rea- (i) a person who directly (not through a this Act (or any Act enacted to give effect to sonably expected to be capable of carrying subsidiary or affiliate) manufactures tobacco the national tobacco settlement agreement out the functions required by the Secretary. products for sale in the United States; of June 20, 1997) shall be construed to in- (4) DETERMINATIONS.—Not later than 60 (ii) a successor or assign of a person de- fringe upon the right of such tribes or mem- days after the date on which an Indian tribe scribed in subparagraph (A); bers of such tribes to acquire, possess, use, or or tribal organization submits an application (iii) an entity established by a person de- transfer any tobacco or tobacco products for for assistance under paragraph (3), the Sec- scribed in subparagraph (A); such purposes. retary shall make a determination concern- (iv) an entity to which a person described (2) APPLICATION OF PROVISIONS.—Paragraph ing the eligibility of such tribe or organiza- in subparagraph (A) directly or indirectly (1) shall apply only to those quantities of to- tion for such assistance. S2298 CONGRESSIONAL RECORD — SENATE March 19, 1998

(5) IMPLEMENTATION BY THE SECRETARY.—If area or areas of an Indian tribe or tribal or- (1) IN GENERAL.—Except as otherwise pro- the Secretary determines that the Indian ganization that receives a grant under sub- vided in this section, nothing in this Act of tribe or tribal organization is not willing or paragraph (A) are located, the Secretary any Act enacted in order to give effect to the not qualified to administer the requirements shall reduce the amount otherwise payable national tobacco settlement agreement of of the regulations promulgated under this to such State, under any Act enacted in June 20, 1997, shall be construed to prohibit subsection, the Secretary, in consultation order to give effect to the national tobacco an Indian tribe or tribal organization from with the Secretary of the Interior, shall im- settlement agreement of June 20, 1997, by the imposing requirements, prohibitions, pen- plement and enforce such regulations on be- amount of such grant. alties, or other measures to further the pur- half of the tribe or tribal organization. (2) TRIBAL PLANS.—To be eligible to receive poses of this Act that are in addition to the (6) DEFICIENT APPLICATIONS; OPPORTUNITY a grant under paragraph (1), an Indian tribe requirements, prohibitions, or penalties re- TO CURE.—If the Secretary determines under or tribal organization shall prepare and sub- quired by this Act or such other Act. paragraph (4) that a tribe is not eligible for mit to the Secretary an anti-smoking plan (2) PUBLIC EXPOSURE TO SMOKE.—Nothing in assistance under this subsection, the Sec- and shall otherwise meet the requirements of this Act shall be construed to preempt or retary shall— subsection (e). The Secretary shall promul- otherwise affect any Indian tribe or tribal (A) submit to such tribe or organization, in gate regulations providing for the form and organization rule or practice that provides writing, a statement of the reasons for such content of anti-smoking plans to be submit- greater protections from the health hazards determination; and ted under this paragraph. of environmental tobacco smoke. (B) shall assist such tribe in overcoming (3) AMOUNT DETERMINED.—Except as pro- (3) NATIVE AMERICANS.—A State may not any deficiencies that resulted in the deter- vided in this subsection, the amount of any impose obligations or requirements relating mination of ineligibility. grant for which an Indian tribe or tribal or- to the application of this Act or any other After an opportunity to review and cure such ganization is eligible under paragraph (1) Act enacted in order to give effect to the na- deficiencies, the tribe or organization may shall be determined by the Secretary based tional tobacco settlement agreement of June re-apply to the Secretary for assistance on the product of— 20, 1997, to Indian tribes and tribal organiza- under this subsection. (A) the ratio of the total number of indi- tions. (e) RETAIL LICENSING REQUIREMENTS.— vidual residing on or in such tribe’s or tribal (1) IN GENERAL.—The requirements of the organization’s reservation, jurisdictional By Mrs. FEINSTEIN: Federal Food, Drug, and Cosmetic Act (21 lands, or the active user population, relative S. 1798. A bill to provide for an alter- U.S.C. 321 et seq.), or any Act enacted in to the total population of the State involved; native penalty procedure for States order to give effect to the national tobacco and that fail to meet Federal child support settlement agreement of June 20, 1997, with (B) the amount allocated to the State for respect to the licensing of tobacco retailers data processing requirements; to the such public health purposes. Committee on Finance. shall apply to retailers that sell tobacco or (4) USE.—Amounts provided to a tribe or tobacco products within the exterior bound- tribal organization under this subsection THE CHILD SUPPORT PENALTY FAIRNESS ACT OF aries of Indian reservations or on lands with- shall be used to reimburse the tribe for 1998 in the jurisdiction of an Indian tribe or trib- smoking-related health expenditures, to fur- Mrs. FEINSTEIN. Mr. President, I al organization. ther the purposes of this Act or any Act en- am introducing today, the Child Sup- (2) MINIMUM FEDERAL STANDARDS.— acted in order to give effect to the national port Penalty Fairness Act of 1998. (A) IN GENERAL.—Not later than 180 days tobacco settlement agreement of June 20, Similar to the House passed Child Sup- after the date of enactment of this Act, the 1997, and in accordance with a tribal anti- Secretary shall promulgate regulations to port Performance and Incentive Act, smoking plan approved by the Secretary. In- this legislation decreases penalties for authorize an Indian tribe or tribal organiza- dian tribes and tribal organizations shall tion to implement a tribal tobacco product have the flexibility to utilize such amounts states who didn’t make the October licensing program within Indian reservations to meet the unique health care needs of per- 1997 child support enforcement system or on lands within the jurisdiction of an In- sons within their service populations within deadline but this legislation provides dian tribe or tribal organization. the context of tribal health programs if such exemptions for those counties, such as (B) MODEL STATE LAW.—The terms, condi- programs meet the fundamental Federal Los Angeles county, that made the tions, and standards contained in the model goals and purposes of Federal Indian health deadline even if the state didn’t. State law contained in any Act enacted to care law and policy. give effect to the national tobacco settle- This legislation decreases the overall (5) REALLOTMENT.—Amounts set aside and ment agreement of June 20, 1997 shall con- penalties to 4% of the child support ad- not expended under this subsection shall be stitute the minimum Federal regulations ministrative funds in the first year, reallotted among other eligible Indian tribes that an Indian tribe or tribal organization and tribal organizations. and doubles the percentage of penalties must enact in order to assume responsibility (g) OBLIGATIONS OF MANUFACTURERS.—Man- each year, capping it at 20% by the for the licensing and regulation or tobacco- ufacturers participating in, or covered under fourth year. Additionally, if the state related activities conducted within the exte- this Act or any Act enacted in order to give becomes certified during the year, 75% rior boundaries of Indian reservations or on effect to the national tobacco settlement lands within the jurisdiction of an Indian of the penalties would be forgiven for agreement of June 20, 1997 shall not engage that fiscal year. The penalty structure tribe or tribal organization. in any activity on lands within the jurisdic- (C) WAIVER.—An Indian tribe or tribal or- tion of an Indian tribe or tribal organization in this legislation is the same as CLAY ganization shall have the same right to that is prohibited by this Act or such other SHAW’s bill, HR3130, which passed the apply for waiver and modification of the law Act. House of Representatives two weeks described in subparagraph (B) as a State pur- (h) USE OF TRUST FUND PAYMENTS.— ago and awaits consideration in the suant to the Act involved. Amounts made available from the tobacco Senate Finance Committee. (3) IMPLEMENTATION BY THE SECRETARY.—If trust fund pursuant to any Indian health The current penalties for not having the Secretary, in consultation with the Sec- provisions of any Act enacted in order to the child support enforcement system retary of the Interior, determines that the give effect to the national tobacco settle- Indian tribe or tribal organization is not ment agreement of June 20, 1997 shall be pro- up and running are enormous. States qualified to administer the relevant require- vided to the Indian Health Service and, would be penalized all their TANF ments of the Federal Food, Drug, and Cos- through the provisions of the Indian Self De- (AFDC) funding and their child support metic Act (21 U.S.C. 321 et seq.) or any Act termination and Education Assistance Act administration funds for the year. enacted in order to give effect to the na- (25 U.S.C. 450b et seq.) to Indian tribes or The total loss in TANF funds and tional tobacco settlement agreement of June tribal organizations to be used to reduce to- child support administrative funds 20, 1997, the Secretary, in consultation with bacco consumption, promote smoking ces- from the 14 states amount to over $8 the Secretary of the Interior, shall imple- sation, and to fund related activities includ- ment such requirements on behalf of the In- ing— billion annually and for California, the dian tribe or tribal organization. (1) clinic and facility design, construction, penalty would be $3.7 billion in TANF (f) ELIGIBILITY FOR PUBLIC HEALTH PAY- repair, renovation, maintenance, and im- funds and $300 million in child support MENTS.— provement; administrative funds annually. (1) GRANT.— (2) health care provider services and equip- What is unique about this legislation (A) IN GENERAL.—For each fiscal year the ment; is that in addition to lowering pen- Secretary shall award a grant to each Indian (3) domestic and community sanitation as- alties, it exempts from the penalties tribe or tribal organization that has an ap- sociated with clinic and facility construction those counties who had their own cer- proved anti-smoking plan for the fiscal year and improvement; tifiable systems prior to October 31, involved under paragraph (2) in an amount (4) inpatient and outpatient services; and equal to the amount determined under para- (5) other programs and services which have 1997. graph (3). as their goal raising the health status of In- All of us agree that for states who (B) REDUCTION IN STATE AMOUNTS.—With dians. did not make the deadline, they should respect to any State in which the service (i) PREEMPTION.— be held accountable. But for those March 19, 1998 CONGRESSIONAL RECORD — SENATE S2299 states who have county based child ‘‘(II) 8 percent of the penalty base, in the ‘‘(II) ensure that the calculation of dis- support systems where individual coun- case of the 2nd such fiscal year; tribution of collected support is according to ties could have been certified by HHS ‘‘(III) 16 percent of the penalty base, in the the requirements of section 457; independently, it is unfair to penalize case of the 3rd such fiscal year; or ‘‘(III) ensure that there is only 1 point of ‘‘(IV) 20 percent of the penalty base, in the contact in the State for all interstate case the counties with the state. case of the 4th or any subsequent such fiscal processing and coordinated intrastate case For California, 25% or $75 million of year. management; the penalty will be borne by LA Coun- ‘‘(ii) The term ‘penalty base’ means, with ‘‘(IV) ensure that standardized data ele- ty, the largest county in the nation respect to a failure of a State to comply with ments, forms, and definitions are used serving 550,000 families and whose pro- section 454(24) during a fiscal year, the throughout the State; and gram is larger than 42 other states. De- amount otherwise payable to the State ‘‘(V) complete the alternative system in no spite the fact that LA County com- under paragraph (1)(A) of this subsection for more time than it would take to complete a pleted its system by the October 1997 the preceding fiscal year, minus the applica- single statewide system that meets such re- quirement; deadline and could be certified as rec- ble share of such amount which would other- wise be payable to any county to which the ‘‘(B)(i) the waiver meets the criteria of ognized by HHS in its March 2, 1998 Secretary granted a waiver under the Family paragraphs (1), (2), and (3) of section 1115(c); proposed rules, LA County will be pe- Support Act of 1988 (Public Law 100-485; 102 or nalized along with the rest of Califor- Stat. 2343) for 90 percent enhanced Federal ‘‘(ii) the State provides assurances to the nia. funding to develop an automated data proc- Secretary that steps will be taken to other- This is unfair and wrong. As I pro- essing and information retrieval system pro- wise improve the State’s child support en- pose in my legislation, when counties vided that such system was implemented forcement program; and have met the system requirement by prior to October 1, 1997. ‘‘(C) in the case of a request to waive the ‘‘(C)(i) The Secretary shall waive a penalty single statewide system requirement, the building their own system with sepa- State has submitted to the Secretary sepa- rate HHS funding, their portion should under this paragraph for any failure of a State to comply with section 454(24)(A) dur- rate estimates of the total cost of a single be exempted from the total penalties ing fiscal year 1998 if— statewide system that meets such require- imposed on a state. ‘‘(I) by December 31, 1997, the State has ment, and of any such alternative system or Mr. President, I know there is bi-par- submitted to the Secretary a request that systems, which shall include estimates of the tisan support for my proposal which is the Secretary certify the State as having cost of developing and completing the sys- similar to CLAY SHAW’s bill which met the requirements of such section; tem and of operating the system for 5 years, and the Secretary has agreed with the esti- passed the House. My proposal differs ‘‘(II) the Secretary has provided the certifi- mates.’’. cation as a result of a review conducted pur- from SHAW’s bill in that it exempts (b) PAYMENTS TO STATES.—Section 455(a)(1) penalties for those counties who met suant to the request; and of such Act (42 U.S.C. 655(a)(1)) is amended— all the requirements and completed ‘‘(III) the State has not failed such a re- (1) by striking ‘‘and’’ at the end of subpara- view. their child support enforcement system graph (B); ‘‘(ii) If a State with respect to which a re- (2) by striking the semicolon at the end of before the October 1997 deadline. This duction is made under this paragraph for a provision is critical for many states subparagraph (C) and inserting ‘‘, and’’; and fiscal year achieves compliance with section (3) by inserting after subparagraph (C) the whose counties have done their job but 454(24)(A) by the beginning of the succeeding following: will suffer enormous penalties because fiscal year, the Secretary shall increase the ‘‘(D) equal to 66 percent of the sums ex- the state as a whole have failed. amount otherwise payable to the State pended by the State during the quarter for I urge all my colleagues to support under paragraph (1)(A) of this subsection for an alternative statewide system for which a this legislation, and I ask unanimous the succeeding fiscal year by an amount waiver has been granted under section consent that the text of the bill, the equal to 75 percent of the reduction for the 452(d)(3), but only to the extent that the fiscal year. memorandum of understanding, and ex- total of the sums so expended by the State ‘‘(D) The preceding provisions of this para- cerpts from 42 CFR Part 307 be printed on or after the date of the enactment of this graph (except for subparagraph (C)(i)) shall subparagraph does not exceed the least total into the RECORD. apply, separately and independently, to a There being no objection, the mate- cost estimate submitted by the State pursu- failure to comply with section 454(24)(B) in ant to section 452(d)(3)(C) in the request for rial was ordered to be printed in the the same manner in which the preceding pro- the waiver.’’. RECORD, as follows: visions apply to a failure to comply with sec- S. 1798 tion 454(24)(A).’’. MEMORANDUM OF UNDERSTANDING Be it enacted by the Senate and House of Rep- (b) INAPPLICABILITY OF PENALTY UNDER This agreement is entered into by Wayne resentatives of the United States of America in TANF PROGRAM.—Section 409(a)(8)(A)(i)(III) A. Stanton, Administrator, Family Support Congress assembled, of such Act (42 U.S.C. 609(a)(8)(A)(i)(III)) is Administration (FSA), Department of Health SECTION. 1. ALTERNATIVE PENALTY PROCEDURE amended by inserting ‘‘(other than section and Human Services, Ira Reiner, Los Angeles FOR CHILD SUPPORT DATA PROC- 454(24))’’ before the semicolon. County District Attorney, Richard B. Dixon, ESSING REQUIREMENTS. SEC. 2. AUTHORITY TO WAIVE SINGLE STATE- Los Angeles County Chief Administrative Of- (a) IN GENERAL.—Section 455(a) of the So- WIDE AUTOMATED DATA PROCESS- ficer, and Dennis Boyle, Deputy Director, cial Security Act (42 U.S.C. 655(a)) is amend- ING AND INFORMATION RETRIEVAL State Department of Social Services, to re- ed by adding at the end the following: SYSTEM REQUIREMENT. solve certain issues relating to needed im- ‘‘(4)(A) If— (a) IN GENERAL.—Section 452(d)(3) of the provement in the Los Angeles County child ‘‘(i) the Secretary determines that a State Social Security Act (42 U.S.C. 652(d)(3)) is support enforcement program. plan under section 454 would (in the absence amended to read as follows: It is understood and agreed that there is a of this paragraph) be disapproved for the fail- ‘‘(3) The Secretary may waive any require- top level management commitment to ac- ure of the State to comply with section ment of paragraph (1) or any condition speci- complish management standards to perform- 454(24)(A), and that the State has made and fied under section 454(16), and shall waive the ance and to develop an automated system is continuing to make a good faith effort to single statewide system requirement under that can adequately support the program op- so comply; and sections 454(16) and 454A, with respect to a erations and to employ sufficient staff to ‘‘(ii) the State has submitted to the Sec- State if— carry out the duties of the Child Support retary a corrective compliance plan that de- ‘‘(A) the State demonstrates to the satis- Program. It is further understood and agreed that scribes how, by when, and at what cost the faction of the Secretary that the State has the lack of an automation system that can State will achieve such compliance, which or can develop an alternative system or sys- adequately support the program operations has been approved by the Secretary, tems that enable the State— and the present number of employees as- ‘‘(i) for purposes of section 409(a)(8), to then the Secretary shall not disapprove the signed to carry out the duties of the family State plan under section 454, and the Sec- achieve the paternity establishment percent- support program have significantly contrib- retary shall reduce the amount otherwise ages (as defined in section 452(g)(2)) and uted to the current level of child support col- payable to the State under paragraph (1)(A) other performance measures that may be es- lections. of this subsection for the fiscal year by the tablished by the Secretary; All concerned parties will work together to penalty amount. ‘‘(ii) to submit data under section quickly complete Requests For Proposals for ‘‘(B) In this paragraph: 454(15)(B) that is complete and reliable; the following areas consistent with applica- ‘‘(i) The term ‘penalty amount’ means, ‘‘(iii) to substantially comply with the re- ble County charter and ordinance provisions with respect to a failure of a State to comply quirements of this part; and which require findings of cost effectiveness with section 454(24)— ‘‘(iv) in the case of a request to waive the or feasibility: ‘‘(I) 4 percent of the penalty base, in the single statewide system requirement, to— 1. To replace, enlarge, or modify Los Ange- case of the 1st fiscal year in which such a ‘‘(I) meet all functional requirements of les County’s existing Automated Child Sup- failure by the State occurs; sections 454(16) and 454A; port Enforcement System; S2300 CONGRESSIONAL RECORD — SENATE March 19, 1998 2. Supplemental locate and collection serv- vise 45 CFR Part 307 to include conforming census factor. With a base amount assigned ices for hard-to-find absent parents; changes and to add § 307.31. for Los Angeles County, we can calculate the 3. An automated billing system; Conditions That Must Be Met for 80 Percent total remaining funds available for alloca- 4. Process serving; Federal Financial Participation tion among the other States. California’s 5. Banking/Court Trustee operations; Pub. L. 104–193 provides enhanced funds to caseload factor and census factor represent 6. Blood testing; complete development of child support en- the total for the State, including Los Ange- 7. Data preparation of case backlog in an- forcement systems which meet the require- les County. The California IV–D agency and ticipation of automation. ments of both the Family Support Act and the Los Angeles County IV–D agency have The District Attorney’s Office will imme- PRWORA. From this we conclude that no been asked to provide us with caseload and diately begin hiring within current budg- change in the conditions for receipt of funds census data, as described below, showing Los etary authorizations the necessary addi- was anticipated by Congress. Thus, we pro- Angeles County’s share of the California tional qualified employees to provide re- pose to retain in 45 CFR Part 307.31 the same total. quired child support enforcement program conditions for receipt funds at 80 percent services. FFP which appear at § 307.30 (a), (b), (c), and By Mr. MCCAIN: All concerned parties will work together (d) and apply to claims for FFP at the 90 per- S. 1799. A bill to amend section 121 of to: cent rate. the Internal Revenue Code of 1986 to 1. Develop and approve a six to ten page Throughout this notice of proposed rule- planning Advance Planning Document (as provide that a member of the Armed making we use ‘‘State’’ as the inclusive term Forces of the United States shall be detailed on the Attachment). for States, Territories and approved systems 2. Revise Request For Proposals and Ad- treated as using a principal residence as described in 42 U.S.C. 655(a)(3)(B)(iii) (sec- vance Planning Document so as to require while away from home on extended ac- tion 455(a)(3)(B)(iii) of the Act) as added to the use of existing hardware. the Act by section 5555 of the Balanced Budg- tive duty; to the Committee on Fi- The FSA will advise the State that Los et Act of 1997 (Pub. L. 105–33). The technical nance. Angeles County, in recognition of the size of amendments to section 455(a)(3)(B) of the Act TAX EXCLUSION LEGISLATION its caseload, is eligible to establish its own changed the entities included in the alloca- automated system which may be separate Mr. MCCAIN. Mr. President, I am tion formula by adding ‘‘system’’ to States from any other system(s) which may be re- proud to sponsor this bill to amend the and Territories. For purposes of this pro- quired of other countries. Internal Revenue Code. This bill would posed rule, a system eligible for enhanced The State will request and FSA will con- funding is a system approved by the Sec- modify the home ownership test for sider in a timely manner an 1115 waiver so as retary to receive funding at the 90 percent Sales of Primary Residence so that to provide Los Angeles County 90% funding rate for the purpose of developing a system members of our Armed Forces, who are to replace, enlarge or modify Los Angeles that meets the requirements of section away on active duty, qualify for the ex- County’s existing Automated Child Support 454(16) of the Act (42 U.S.C. 654(16)) (as in ef- Enforcement System and not jeopardize 90% isting tax relief on the profit generated fect on and after September 30, 1995) and sec- funding for other systems within the State. when they sell their main residence. tion 454A of the Act (42 U.S.C. 654A), includ- This document expresses the will and com- This amendment will not create a new ing a system that received funding for this mitment of the Federal, State, and County tax benefit; it merely modifies current purpose pursuant to a waiver under section Governments to expedite the approval proc- 1115(a) of the Act (42 U.S.C. 1315(a)). law to include the time military per- esses necessary to accomplish the goals set Allocation Formula sonnel are away from home on active forth herein. duty when calculating the number of Section 344(b)(3)(C) of PRWORA requires WAYNE A. STANTON, years the home owner has lived in their Administator, Family the Secretary to allocate by formula the Support Administra- $400,000,000 available at the 80 percent FFP primary residence. In short, this tion. rate. This section specifies that the formula amendment is narrowly tailored to GREGORY THOMPSON, take into account the relative size of State remedy a specific dilemma. Chief, Deputy District IV–D caseloads and the level of automation The Taxpayer Relief Act of 1997 deliv- Attorney, District needed to meet applicable automatic data ered sweeping tax relief to millions of Attorney’s Office. processing requirements. The legislative his- Americans through a wide variety of RICHARD B. DIXON, tory does not elaborate on the meaning of important tax changes that affect indi- Chief Administrative these factors. The allocation formula proposed in this viduals, families, investors and busi- Officer, Chief, Ad- nesses. It is also one of the most com- ministrative Office. section is the product of consultation with a DENNIS BOYLE, wide range of stakeholders. We sought infor- plex tax laws enacted in recent mem- Deputy Director, State mation from child support enforcement sys- ory. Department of Social tems experts, financial experts, economists, Mr. President, as with any complex Services. State IV–D directors, and national associa- legislation, there are winners and los- tions. Before drafting regulations we asked ers. But in this instance, there is an EXCERPTS FROM 45 CFR PART 307 States to suggest approaches for allocating the available Federal share of the funds. In a unintended loser: military personnel. AUTOMATED DATA PROCESSING FUNDING LIMI- number of open forums we sought sugges- The 1997 act gives taxpayers who sell TATION FOR CHILD SUPPORT ENFORCEMENT tions for the allocation formula. An internal their principal residence a much-need- SYSTEMS working group considered the information ed tax break when they sell their pri- Summary: The Federal share of funding from States, reviewed the suggestions, then mary residence. Under the old rule, available at an 80 percent matching rate for developed the proposed allocation formula. taxpayers received a one-time exclu- child support enforcement automated sys- Simply stated, the proposed formula first sion on the profit they made when they tems changes resulting from the Personal allots a base amount of $2,000,000 to each sold their principal residence, but the Responsibility and Work Opportunity Rec- State to take into account the level of auto- onciliation Act is limited to a total of mation needed to meet the automated data taxpayer had to be at least 55 years old $400,000,000 for fiscal years 1996 through 2001. processing requirements of title IV–D. The and live in the residence for 2 of the 5 This proposed rule responds to the require- formula, then, allots an additional amount years preceding the sale. This provision ment that the Secretary of Health and to States based on both their reported IV–D primarily benefited elderly taxpayers, Human Services issue regulations which caseload and their potential caseload based while not providing any relief to specify a formula for allocating this sum on Census data on children living with one younger taxpayers and their families. among the States, Territories and eligible parent. Fortunately, the 1997 act addressed systems. As indicated earlier, we use ‘‘State’’ as the PRWORA requires the Secretary of Health inclusive term for States, Territories and this issue. Under the new law, all tax- and Human Services to issue regulations systems described in 42 U.S.C. 655(a)(3)(B)(iii) payers who sell their personal resi- which specify a formula for allocating the (455(a)(3)(B)(iii) of the Act) as amended by dence on or after May 7, 1997, are not $400,000,000 available at 80 percent FFP section 5555 of the Balanced Budget Act of taxed on the first $250,000 of profit from among the States and Territories. The Bal- 1997. The technical amendments to section the sale. Joint filers are not taxed on anced Budget Act Amendments add specified 455(a)(3)(B) of the Act changed the entities the first $500,000 of profit they made systems to the entities included in the for- included in the allocation formula by adding from selling their principal residence. mula. The allocation formula must take into ‘‘system’’ to States. Mr. President, I applaud the bi-par- account the relative size of State and sys- At this time caseload and census data are tems IV–D (child support enforcement) case- not available for Los Angeles County. There- tisan cooperation that resulted in this loads and the level of automation needed to fore, the tables in appendix A show a base much-needed form of tax relief. The meet title IV–D automated data processing amount allocated to Los Angeles County and home sales provision sounds great, and requirements. Accordingly, we propose to re- blank cells for the caseload factor and the it is. However, when we delve deeper March 19, 1998 CONGRESSIONAL RECORD — SENATE S2301 into this law, we note that the tax- economic growth allows everyday ‘‘(B) EXTENDED ACTIVE DUTY.—For purposes payer must meet two requirements to Americans to participate in our coun- of this paragraph, the term ‘extended active qualify for this tax relief. To qualify, try’s prosperity. Fortunately, the Tax- duty’ means any period of active duty pursu- the taxpayer must (1) own the home for payer Relief Act of 1997 recognized this, ant to a call or order to such duty for a pe- at least 2 of the 5 years preceding the riod in excess of 90 days or for an indefinite and provided this break to lessen the period.’’ sale, and (2) live in the home as their amount of tax most Americans will pay (b) EFFECTIVE DATE.—The amendment MAIN home for at least 2 years of the on the profit they make when they sell made by this section shall apply to sales or last 5 years. their main homes. exchanges after May 6, 1997. The second part of this test uninten- This bill simply remedies an inequal- tionally prohibits many of our women ity in the new law. The bill amends the By Mr. GLENN (for himself and and men in the Armed Services from Internal Revenue Code so that mem- Mr. DEWINE): qualifying for this beneficial tax relief. bers of our Armed Forces will be con- S. 1800. A bill to designate the Fed- Constant travel across the U.S. and sidered to be using their house as their eral building and United States court- abroad is inherent to military service. main residence for any period that house located at 85 Marconi Boulevard Nonetheless, some military personnel they are away on extended active duty. in Columbus, Ohio, as the ‘‘Joseph P. choose to purchase a home in a certain In short, military personnel will be Kinneary United States Courthouse’’; locale, even though they will not live deemed to be using their house as their to the Committee on Environment and there for much of the time. Under the main home, even if they are stationed Public Works. new law, if you do not have a spouse, in Bosnia, the Persian Gulf, in the ‘‘no JOSEPH KINNEARY UNITED STATES COURTHOUSE and are also forced to travel, you will man’s land,’’ commonly called the LEGISLATION not qualify for the full benefit of the DMZ between North and South Korea, Mr. GLENN. Mr. President, I rise new home sales provision, because no or anywhere else on active duty orders. today to introduce a bill naming the one ‘‘lives’’ in the home for the re- We cannot afford to discourage Mili- Federal Building and Courthouse at 85 quired period of time. The current law tary service by penalizing military per- Marconi Boulevard in Columbus, Ohio also hits dual-military couples that are sonnel with higher taxes merely be- after one of my home state’s most often away on active duty. They, would cause they are doing their job. Military highly esteemed members of the fed- not qualify for the home sales exclu- service in itself entails sacrifice, such eral bench, Judge Joseph P. Kinneary. sion because neither spouse ‘‘lives’’ in as long periods of time away from Judge Kinneary has served on the the house for enough time to qualify friends and family, and the constant United States District Court of Ohio for the exclusion. threat of mobilization into hostile ter- for over 32 years. But Judge Kinneary’s Today, the United States has ap- ritory. We must not use the tax code to commitment to public service goes proximately 37,000 men and women de- heap additional burdens upon our much further beyond these past three ployed to the Persian Gulf region, pre- women and men in uniform. decades. He has given a lifetime to pub- paring to go into combat, if so ordered. In my view, the way to decrease the lic service. In fact, that service contin- There are another 8,000 American likelihood of further inequities such as ues even today where, at age 92, Judge troops deployed in Bosnia, and another the current Home Sales provision is to Kinneary continues to serve as a senior 70,000 U.S. military personnel deployed adopt a fairer, flatter tax that is far judge carrying a docket of cases. in support of other commitments less complicated than our current sys- I’d like to take a few minutes of my worldwide. That is a total of 108,000 tem. But, in the meantime, we must in- colleagues’ time to talk about this women and men deployed outside of sure that the tax code is fair and equi- amazing gentleman and what he’s done the United States, away from their pri- for my home state of Ohio and our en- mary home. These women and men are table. The Taxpayers’ relief Act of 1997 was tire nation. abroad protecting and furthering the Judge Kinneary graduated from the freedoms we Americans hold so dear. designed to provide sweeping tax relief to all Americans, including our women University of Cincinnati’s College of It is fundamentally unfair to deny Law in 1935. After practicing law in these men and women the same tax re- and men in uniform. Yes, it is true that both Columbus and Cincinnati for two lief as their civilian counterparts. The there are winners and losers in any tax years, Judge Kinneary served as Assist- newly enacted current home sale provi- code. However, this inequity is unin- ant Attorney General of Ohio until sion unintentionally discourages home tended. We should enact this narrowly 1939. ownership among military personnel. tailored remedy to grant equal tax re- But, as happened to many Americans Many of our troops simply do not qual- lief to the members of our Armed Serv- in those days, World War II changed ify for the homes sales tax relief be- ices. Joseph Kinneary’s career plans. He cause they are away from their home Mr. President, I ask unanimous con- so much of the time. sent that the text of the bill be printed served in the Army from 1942 to 1946, Discouraging home ownership among in the RECORD. and worked as the Chief of the Legal military personnel is unfair and bad There being no objection, the bill was Branch for the Field Headquarters of fiscal policy. Home ownership has nu- ordered to be printed in the RECORD, as the Quartermaster Corps. merous benefits for communities and follows: After his war service, Judge individual homeowners. Having a fixed S. 1799 Kinneary returned to private practice. In 1949, however, Judge Kinneary re- home provides Americans with a sense Be it enacted by the Senate and House of Rep- of community, and adds stability to resentatives of the United States of America in turned to public service and became our nation’s neighborhoods. Home own- Congress assembled, the First Assistant Attorney General ership also generates valuable property SECTION 1. ARMED FORCES MEMBER TREATED of Ohio. And, in 1961, President Ken- taxes for our nation’s communities. AS USING PRINCIPAL RESIDENCE nedy appointed Judge Kinneary to We are in a period of robust growth. WHILE AWAY FROM HOME ON AC- United States Attorney for the South- TIVE DUTY. ern District of Ohio where he served Americans who are fortunate enough (a) IN GENERAL.—Section 121(d) of the In- to do so, reap the benefits of our coun- ternal Revenue Code of 1986 (relating to spe- until 1966. try’s growth by investing in the stock cial rules) is amended by adding at the end In 1966, President Johnson appointed market. Many of our nation’s recent the following new paragraph: Judge Kinneary to the District Court millionaires became millionaires ‘‘(9) DETERMINATION OF USE DURING PERIODS for the Southern District of Ohio. Well- through the stock market. However, OF ACTIVE DUTY WITH ARMED FORCES.— respected among his colleagues, he many middle- and lower-income Ameri- ‘‘(A) IN GENERAL.—A taxpayer shall be served as Chief Judge from January cans don’t hold vast amounts of stocks, treated as using property as a principal resi- 1973 to September 1975. bonds, mutual funds, and the like. dence during any period the taxpayer (or the And, today, 32 years after his ap- taxpayer’s spouse) is serving on extended ac- pointment to the bench, Judge Therefore, how does the average Amer- tive duty with the Armed Forces of the ican participate in our nation’s robust United States, but only if the taxpayer used Kinneary still presides and draws a growth? Through home ownership. the property as a principal residence for any docket that is approximately 80 per- Appreciation in the value of a home period before the period of extended active cent of an active judge. I find Judge resulting from our country’s overall duty. Kinneary’s dedication to the people of S2302 CONGRESSIONAL RECORD — SENATE March 19, 1998 Ohio and America inspiring, as I’m SEC. 2. REFERENCES. before July 15. Givaudan-Roure, which sure many of my colleagues do on hear- Any reference in a law, map, regulation, is also a constituent, knows of this leg- ing of his career. document, paper, or other record of the islation and the effective date, and United States to the Federal building and I can think of no better way for the United States courthouse referred to in sec- does not oppose it. U.S. Senate, for the entire country, to tion 1 shall be deemed to be a reference to I ask my colleagues to support this honor Judge Kinneary than to name the ‘‘Joseph P. Kinneary United States legislation. Reducing the duties paid one of Columbus, Ohio’s, most impor- Courthouse’’. by American companies for products tant federal buildings and courthouses which have no American manufacturer in his honor. So, it is with great thanks By Mr. LAUTENBERG: keep our companies from being placed and a deep sense of honor that I intro- S. 1801. A bill to suspend until De- at a competitive disadvantage in the duce today a bill to name the Colum- cember 31, 2000, the duty on global marketplace. In addition, these bus Courthouse after Judge Kinneary. I Benzenepropanal, 4-(1, 1- lower duties will benefit American con- urge my colleagues to give this legisla- Dimethylethyl)-Methyl-; to the Com- sumers and business customers of Bush tion quick consideration and approval. mittee on Finance. Boake Allen Inc. Mr. President, I ask unanimous con- DUTY SUSPENSION LEGISLATION Mr. President, I ask unanimous con- sent that the full text of the bill be Mr. LAUTENBERG. Mr. President, I sent that the text of the bill be printed rise today to introduce legislation to printed in the RECORD. in the RECORD. temporarily reduce the rate of duty im- There being no objection, the bill was There being no objection, the bill was posed on a fragrance additive with the ordered to be printed in the RECORD, as ordered to be printed in the RECORD, as chemical name of Benzenepropanal, 4- follows: follows: (1,1-Dimethylethyl)-Methyl-. The S. 1801 S. 1800 chemical has a lily-like floral aroma Be it enacted by the Senate and House of Rep- and used in fragrances. Be it enacted by the Senate and House of Rep- resentatives of the United States of America in My constituent who requested this resentatives of the United States of America in Congress assembled, Congress assembled, duty reduction, Bush Boake Allen Inc. SECTION 1. DESIGNATION OF JOSEPH P. SECTION 1. REDUCTION OF DUTY ON of Montvale, New Jersey, knows of no BENZENEPROPANAL, 4-(1,1- KINNEARY UNITED STATED COURT- opposition to this legislation. The last HOUSE. DIMETHYLETHYL)-METHYL-. United States manufacturer of this The Federal building and United States (a) IN GENERAL.—Subchapter II of chapter courthouse located at 85 Marconi Boulevard chemical, Givaudan-Roure, will cease 99 of the Harmonized Tariff Schedule of the in Columbus, Ohio, shall be known and des- all production of this additive by June United States is amended by inserting in nu- ignated as the ‘‘Joseph P. Kinneary United 1998. I have drafted this legislation to merical sequence the following new item: States Courthouse’’. ensure that it will not go into effect

‘‘ 9902.29.57 Benzenepropanal, 4-(1,1-Dimethylethyl)-Methyl- (CAS No. 80–54– 6) provided for in subheading 2912.29.60) ...... 6% No change No change On or be- fore 12/31/ ’’. 2000 (b) EFFECTIVE DATE.—The amendment provide sufficient resources to ensure with me and the other sponsors in ex- made by subsection (a) applies with respect the agency is able to continue to carry peditiously moving this necessary to goods entered, or withdrawn from ware- out its serious responsibilities. transportation reauthorization house for consumption, on or after the later Mr. President, I want to stress to my of— through the legislative process. (1) the 15th day after the date of enactment colleagues that this is a working piece Mr. President, I ask unanimous con- of this Act; or of legislation. The Senate Commerce sent that the text of the bill be printed (2) July 15, 1998. Committee intends to fully explore the in the RECORD. resource needs of the Board, along with There being no objection, the bill was By Mr. MCCAIN (for himself, Mr. proposals to provide for any statutory ordered to be printed in the RECORD, as HOLLINGS, Mrs. HUTCHISON, Mr. changes as may be necessary. The Sur- follows: INOUYE, Mr. LOTT, and Mr. face Transportation and Merchant Ma- S. 1802 FORD): rine Subcommittee has already sched- S. 1802. A bill to authorize appropria- uled a hearing on the STB reauthoriza- Be it enacted by the Senate and House of Rep- tions for the Surface Transportation tion for March 31st and I want to com- resentatives of the United States of America in Congress assembled, Board for fiscal years 1999, 2000, and mend Chairman HUTCHISON for her ex- 2001; to the Committee on Commerce, peditious action on this important re- SECTION 1. SHORT TITLE. Science, and Transportation. authorization hearing. This Act may be cited as the ‘‘Surface Transportation Board Reauthorization Act THE SURFACE TRANSPORTATION BOARD During the reauthorization process, I of 1998’’. REAUTHORIZATION ACT OF 1998 further anticipate we will continue our Mr. MCCAIN. Mr. President, today I examination of rail service and rail SEC. 2. AUTHORIZATION LEVELS. am introducing the Surface Transpor- shipper problems in addition to the There are authorized to be appropriated to tation Board (STB) Reauthorization more general reauthorization issues. the Surface Transportation Board $16,190,000 for fiscal year 1999, $16,642,000 for fiscal year Act of 1998. I am pleased to be joined in The Surface Transportation and Mer- 2000, and $17,111,000 for fiscal year 2001. sponsoring this measure by several chant Marine Subcommittee has held members of the Senate Committee on two fields hearings and a third hearing Mr. HOLLINGS. Mr. President, I am Commerce, Science, and Transpor- on rail service problems will be con- happy to cosponsor, along with Sen- tation, including Senator HOLLINGS, ducted next month. ators MCCAIN, INOUYE, HUTCHISON, Ranking Member, Senators HUTCHISON Rail service and rail shipper issues LOTT, and FORD, this bill to reauthorize and INOUYE, Chair and Ranking Mem- warrant serious consideration, but I be- appropriations for the Surface Trans- ber of the Surface Transportation and lieve specific rail service and rail ship- portation Board (Board). The Board is Merchant Marine Subcommittee, as per problems and cases are best re- the independent agency which oversees well as Senators LOTT and FORD. solved by the Board. The Congress es- the nation’s rail transportation indus- Mr. President, the introduction of tablished the STB as an independent try. The Board also has some authority this bill today is intended to dem- non-political authority to deal with over the interstate bus system, pipe- onstrate our Committee’s firm com- these very exact problems and I believe line system, and rail labor-manage- mitment to enact legislation extending we must continue to assist the Board ment disputes. It should be said that the authorization for the Surface in fulfilling its statutory duties respon- the Congress gave this small agency, Transportation Board during this ses- sibly and independently. with less than 150 people, the job that sion of Congress. The bill we are intro- I look forward to working on this im- had been done by the old Interstate ducing is simple. It proposes to reau- portant transportation legislation and Commerce Commission with, at its thorize the STB for three years and hope my colleagues will agree to join peak, 1600 people. We demanded that March 19, 1998 CONGRESSIONAL RECORD — SENATE S2303 the Board do more with less and we de- THE AGRICULTURAL CREDIT RESTORATION ACT In the Dakotas, farmers were dev- manded that it be evenhanded, fair- Mr. ROBB. Mr. President, every day astated by the great floods of 1997. Due minded, and tackle some very tough, small and minority farmers are strug- to a terrible act by Mother Nature, contentious issues. I am happy to re- gling to survive. They struggle in the they lost everything and had to declare port that the Board has done all of that field as they try to grow a plentiful bankruptcy. and more. crop, they struggle with the ever un- Whether it is a man-mad or a natural Since its inception, the Board has predictable Mother Nature, and they disaster, conditions beyond a farmer’s had a pending caseload of between 400 struggle to compete with large farm control have left him or her in a des- and 500 adjudications related to all of operations. They have a very tough perate position. This does not mean its functions. The number of rail cases job, but they provide us, the consum- these are bad farmers with bad busi- pending at the Board remains rel- ers, with the abundant food supply we ness sense. They have simply experi- take for granted. Historically, when atively constant because, even as cases enced bad times, and USDA, the lender credit is unavailable from private are resolved, new cases are filed. Even of last resort, should not be forbidden sources, farmers have turned to USDA with its relatively meager resources from lending these farmers a helping to finance land, seed, equipment and the Board has met every rulemaking hand. fertilizer, or for funds to offset disaster Last year, responding to complaints deadline set by Congress in the Inter- losses. USDA direct and guaranteed op- by Virginia farmers, I added $50 million state Commerce Commission Termi- erating loan programs allow small in direct operating loan funding to the nation Act. It has resolved close to 200 farmers to be self-sustaining, success- 1997 Supplemental Appropriations bill. motor carrier undercharge cases. It has ful, contributing members of their Many deserving farmers were unable to set and met deadlines and established rural communities. simplified procedures for handling But Mr. President, a little, unknown access these funds because of the life- pending cases. It has also dealt with provision in the 1996 Farm Bill is pro- time ban included in the 1996 Farm bill. the important and difficult issue of rail hibiting farmers and ranchers from re- Mr. President, it is time to repeal carriers providing rates to shippers in ceiving USDA loans if their farm debt this unjust one strike you’re out provi- the so-called ‘‘bottleneck’’ cases. While has been written off, or forgiven, by sion. We need to do so now, before an- this issue is now before the courts, it is the Department in the past for any rea- other planting season goes by and the Board that has tried to steer a son. This provision constitutes a life- farmers are denied the resources they course allowing the rail carriers to time ban, is more severe than private need to get their corps in the ground. earn a decent return on their invest- sector lending policies, and particu- Small farmers are hardworking indi- ment while providing shippers with larly disadvantages small and minority viduals with many daily struggles. The needed transportation at reasonable farmers who often have difficulty se- Federal government should be there to rates. curing credit. It is a one strike you’re offer them a chance to survive, not In the area of rail regulation, the out policy and Mr. President, it is sim- forcing them to move out of the farm- Board has worked on several important ply un-American. ing business. rail restructuring cases, including sev- I believe this provision that prohibits Mr. President, I ask unanimous con- eral complex line construction cases, farmers who have had their farm debt sent that the full text of my bill be in- the Union Pacific/Southern Pacific written-off or restructured from ever serted in the RECORD, and I urge my merger, and the pending Conrail acqui- receiving a USDA loan again was prob- fellow colleagues to support small sition case (in which approximately 80 ably added to the 1996 Farm bill to pro- farmers and pass this legislation. decisions have already been issued). It tect the public interest. However, it is There being no objection, the bill was has tackled the rail service emergency actually forcing some small and minor- ordered to be printed in the RECORD, as in the West in many ways, including ity farmers into impoverished retire- follows: its issuance of an emergency service ment. S. 1803 order on October 31, 1997, which has That is why I rise today to introduce Be it enacted by the Senate and House of Rep- been extended and expanded upon twice the Agricultural Credit Restoration resentatives of the United States of America in and is in place through August 2, 1998. Act of 1998. While safeguarding the in- Congress assembled, In addition, the Board is holding two tegrity of USDA lending programs, this SECTION 1. SHORT TITLE. days of hearings on the rail service bill provides credit-worthy farmers and This Act may be cited as the ‘‘Agricultural emergency in the beginning of next ranchers a second opportunity to par- Credit Restoration Act’’. month. We must applaud Linda Mor- ticipate in lending programs. The legis- SEC. 2. AMENDMENTS TO THE CONSOLIDATED gan, the Chairman of the Board, on her lation, which was formulated by the FARM AND RURAL DEVELOPMENT USDA, eliminates the lifetime ban. It ACT. leadership and the men and women of (a) Section 343(a)(12)(B) of the Consolidated the Board on their hard work and dedi- limits eligibility to two write-downs and farmers and ranchers are given a Farm and Rural Development Act (7 U.S.C. cation and as we do so we must be 1991(a)(12)(B)) is amended to read as follows: second opportunity to participate in mindful that more, much more, will be ‘‘(B) EXCEPTION.—The term ‘debt forgive- expected of them. Two additional rail USDA lending programs. Secondly, an ness’ does not include— mergers have been announced, both of exemption from the ban is included for ‘‘(i) consolidation, rescheduling, re- critical importance to the nation. I one write-down that may result from a amortization, or deferral of a loan; natural disaster or medical condition ‘‘(ii) 1 debt forgiveness in the form of a re- have every confidence in Chairman affecting farmers or their immediate structuring, write-down, or net recovery Morgan and the STB to meet and sur- family, or where discrimination by buy-out during the lifetime of the borrower mount these latest challenges. USDA has occurred. Thirdly, the bill that is due to a financial problem of the bor- This bill represents my commitment gives the Secretary of Agriculture the rower relating to a natural disaster or a medical condition of the borrower or of a to seeing that the Board is reauthor- authority to give loan funds for so- ized for a multi-year span and is given member of the immediate family of the bor- cially disadvantaged farmers to states rower (or, in the case of a borrower that is an the resources it needs to continue its where need is greatest. vital work. Absent the Board, neither entity, a principal owner of the borrower or In my state, Virginia, and through- a member of the immediate family of such shippers nor rail carriers would have out the South, farmers have been de- an owner); and an effective forum to adjudicate dis- nied or delayed loans by USDA local ‘‘(iii) any restructuring, write-down, or net putes and ensure a first rate nation- agents because of their race. This has recovery buy-out provided as a part of a res- wide rail transportation system. been confirmed by USDA and acknowl- olution of a discrimination complaint edged by Agriculture Secretary Dan against the Secretary.’’. By Mr. ROBB: Glickman and President Clinton. This (b) Section 353(m) of such Act (7 U.S.C. S. 1803. A bill to reform agricultural 2001(m)) is amended by striking all that pre- discrimination has forced farmers into cedes paragraph (2) and inserting the follow- credit programs of the Department of bankruptcy and statistics show that ing: Agriculture, and for other purposes; to the black farmer is dwindling at three ‘‘(m) LIMITATION ON NUMBER OF WRITE- the Committee on Agriculture, Nutri- times the rate of other farmers in the DOWNS AND NET RECOVERY BUT-OUTS PER tion, and Forestry. United States. BORROWER.— S2304 CONGRESSIONAL RECORD — SENATE March 19, 1998 ‘‘(1) IN GENERAL.—The Secretary may pro- Large numbers of Americans felt those who already have coverage, but vide a write-down or net recovery but-out locked into their jobs because of pre- it will end the worst of the current under this section or not more than 2 occa- existing health conditions that would price-gouging. This approach of limit- sions per borrower with respect to loans made after January 6, 1988.’’. have subjected them to exclusions cov- ing premium increases based on health (c) Section 353 of such Act (7 U.S.C. 2001) is erage if they changed jobs. conditions has worked and worked well amended by striking subsection (o). Many more who did change jobs in the small group market for many (d) Section 355(c)(2) of such Act (7 U.S.C. found themselves and members of their years. It should have been included in 2003(c)(2)) is amended to read as follows: families exposed to devastating finan- the 1996 bill, and Congress should act ‘‘(2) RESERVATION AND ALLOCATION.— cial risks because of exclusions for on it promptly this year. ‘‘(A) IN GENERAL.—The Secretary shall, to the greatest extent practicable, reserve and such conditions. Other families faced The verdict of experience is in. The allocate the proportion of each State’s loan the same problems if their employers GAO report makes clear that some in- funds made available under subtitle B that is changed insurance plans. Still others surance firms are guilty of abuse be- equal to that State’s target participation were unable to buy individual coverage yond a reasonable doubt, and Congress rate for use by the socially disadvantaged because of health problems if they left has to act. farmers or ranchers in that State. The Sec- their job or lost their job and did not Mr. President, I ask unanimous con- retary shall, to the extent practicable, dis- have access to employer-based cov- tribute the total so derived on a county by sent that the text of the bill be printed county basis according to the number of so- erage. in the RECORD. cially disadvantaged farmers or ranchers in The legislation addressed each of There being no objection, the bill was the county. these problems. It banned exclusions ordered to be printed in the RECORD, as ‘‘(B) REALLOCATION OF UNUSED FUNDS.—The for pre-existing conditions for people follows: Secretary may pool any funds reserved and who maintained coverage, even if they S. 1804 allocated under this paragraph with respect changed jobs or changed insurers. It re- Be it enacted by the Senate and House of Rep- to a State that are not used as described in quired insurance companies to sell in- subparagraph (A) in a State in the first 10 resentatives of the United States of America in months of a fiscal year with the funds simi- surance policies to small businesses Congress assembled, larly not so used in other States, and may and individuals losing group coverage, SECTION 1. SHORT TITLE. reallocate such pooled funds in the discre- regardless of their health status. It This Act may be cited as the ‘‘Affordable tion of the Secretary for use by socially dis- banned higher charges for those in poor Health Insurance Act of 1998’’. advantaged farmers and ranchers in other health in employment-based groups. SEC. 2. AMENDMENTS TO THE PUBLIC HEALTH States.’’. A GAO study in 1995 had found that SERVICE ACT. (e) Section 373(b)(1) of such Act (7 U.S.C. 25 million Americans faced one or more (a) PREMIUM LIMITATIONS WITH RESPECT TO 2008h(b)(1)) is amended to read as follows: INDIVIDUAL COVERAGE.—Section 2741 of the ‘‘(1) IN GENERAL.—Except as provided in of these problems and would be helped by the Kassebaum-Kennedy proposal. Public Health Service Act (42 U.S.C. 300gg– paragraph (2), the Secretary may not make 41) is amended— or guarantee a loan under subtitle A or B to For the vast majority of these Ameri- (1) by redesignating the second subsection a borrower who on, 2 or more occasions, re- cans, the legislation is working well. (e) and subsection (f) as subsection (f) and (g) ceived debt forgiveness on a loan made or They can change jobs without fear of respectively; and guaranteed under this title.’’. new exclusions for pre-existing condi- (2) by adding at the end thereof the follow- (f) Section 373(c) of such Act (7 U.S.C. tions, denial of coverage, or insurance ing: 2008h(c)) is amended to read as follows: ‘‘(h) PREMIUM LIMITATIONS.— ‘‘(c) NO MORE THAN 2 DEBT FORGIVENESSES company gouging. ‘‘(1) IN GENERAL.—With respect to an eligi- PER BORROWER ON DIRECT LOANS.—The Sec- But as the GAO study released last ble individual desiring to enroll in, or renew, retary may not, on 2 or more occasions, pro- week makes clear, many of the two individual health insurance coverage under vide debt forgiveness to a borrower on a di- million people a year who lose em- this section, the health insurance issuer that rect loan made under this title.’’. ployer-based group coverage are vul- offers such coverage shall not charge such SEC. 2. REGULATIONS. nerable to flagrant industry price- individual a premium rate for such coverage Not later than 90 days after the date of the gouging if they try to purchase individ- that is higher than a rate equal to 150 per- enactment of this Act, the Secretary of Agri- ual coverage. Under the Kassebaum- cent of the average standard risk rate (as de- culture shall promulgate regulations nec- termined under paragraph (2)) of the issuer essary to carry out the amendments made by Kennedy legislation, individuals who for individual health insurance offered in the this Act, without regard to— leave their jobs and want to buy cov- (1) the notice and comment provisions of erage in the individual market are State or applicable marketing or service section 553 of title 5, United States Code; and guaranteed access to coverage without area (as determined pursuant to regula- (2) the statement of policy of the Secretary tions). regard to their health status and with- ‘‘(2) AVERAGE STANDARD RISK RATE.—As of Agriculture relating to notices of proposed out being subject to pre-existing condi- rulemaking and public participation in rule- used in paragraph (1), the term ‘average making that became effective on July 24, tion exclusions. But there is no clear standard risk rate’ means the following: 1971 (36 Fed. Reg. 13804). limit in the Federal law on how much ‘‘(A) GUARANTEED ISSUE OF ALL POLICIES.— they can be charged for that coverage— In the case of a health insurance issuer that By Mr. KENNEDY: and some unscrupulous companies are meets the requirements of this section with S. 1804. A bill to amend title XXVII taking advantage of that loophole to respect to individual health insurance cov- of the Public Health Service Act to effectively deny coverage to those in erage by meeting the requirements of sub- section (a)(1), the standard risk rate for the limit the amount of any increase in the poor health by requiring them to pay policy in which the eligible individual is en- payments required by health insurance exorbitant premiums. rolled or desires to enroll. issuers for health insurance coverage We recognized that potential problem ‘‘(B) GUARANTEED ISSUE OF TWO MOST POPU- provided to individuals who are guar- in 1996, but Republican opposition LAR POLICIES.—In the case of a health insur- anteed an offer of enrollment under in- blocked clear, strict federal limits to ance issuer that meets the requirements of dividual health insurance coverage rel- prevent such abuse, on the ground that this section with respect to individual health ative to other individuals who purchase state regulation would be an adequate insurance coverage through a mechanism de- health insurance coverage; to the Com- remedy. At least in some states, as the scribed in subsection (c)(2), the standard risk rate for the policy in which the eligible indi- mittee on Labor and Human Resources. GAO report makes clear, state regula- vidual is enrolled or desires to enroll. AFFORDABLE HEALTH INSURANCE ACT OF 1998 tion is no match for insurance industry ‘‘(C) GUARANTEED ISSUE OF TWO POLICY Mr. KENNEDY. Mr. President, a re- price-gouging. FORMS WITH REPRESENTATIVE COVERAGE.—In cent GAO report makes clear that sig- The legislation that I am introducing the case of a health insurance issuer that nificant insurance company abuses are today is a straightforward response to meets the requirements of this section with undercutting the effectiveness of one of that problem. It will limit insurance respect to individual health insurance cov- the key parts of the Kassebaum-Ken- company charges to eligible individ- erage through a mechanism described in sub- nedy health insurance reforms enacted uals, so that they will have to pay no section (c)(3), the average of the standard more than 150% of the rate charged to risk rates for the most common policy forms in 1996. The legislation that I am intro- offered by the issuer in the State or applica- ducing today will stop these uncon- those in good health. That is well with- ble marketing or service area (as determined scionable practices. in the range that the American Acad- pursuant to regulations), established using The 1996 legislation was enacted in emy of Actuaries said would have neg- reasonable actuarial techniques to adjust for response to several serious problems. ligible impact on the premiums of the difference in actuarial values among March 19, 1998 CONGRESSIONAL RECORD — SENATE S2305 such policy forms, subject to review and ap- 1998. This proposal is strongly sup- Opponents typically claim that, if proval or disapproval of the applicable regu- ported by President Clinton, and is also the minimum wage goes up, the sky latory authority. being introduced today in the House of will fall—small businesses will collapse (b) STATE FLEXIBILITY.—Section 2744(c) of and jobs will be lost. This hasn’t hap- the Public Health Service Act (42 U.S.C. Representatives by Congressman DAVID 300gg–44(c)) is amended— BONIOR, Democratic Leader RICHARD pened in the past, and it won’t happen (1) in paragraph (1), by inserting before the GEPHARDT, and many of their col- in the future. In fact, in the time that period the following: ‘‘, except that in apply- leagues. has passed since the most recent in- ing any such model act, an eligible individ- The federal minimum wage is now creases in the federal minimum wage— ual shall not be charged a premium rate that $5.15 an hour. Our bill will raise it by a 50-cent increase on October 1, 1996 is higher than a rate equal to 150 percent of $1.00 over the next two years—a 50 cent and a 40-cent increase on September 1, the standard risk rate of the issuer’’; increase on January 1, 1999, and an- 1997—employment has increased in all (2) in paragraph (2)(B), by inserting before other 50 cent increase on January 1, sectors of the population. the period the following: ‘‘, except that an el- Since September 1996, 700,000 new re- igible individual shall not be charged a pre- 2000, so that the minimum wage will mium rate that is higher than a rate equal reach the level of $6.15 at the turn of tail jobs have been added in the econ- to 150 percent of the standard risk rate as de- the century. omy, including 200,000 new restaurant termined under the Model Plan’’; and These modest increases will help 20 jobs. Overall employment is at an all- (3) by adding at the end the following: million workers and their families. time high. Overall unemployment is at ‘‘(4) LIMITATION.— Twelve million Americans earning less an historically low rate—4.6 %. The ‘‘(A) IN GENERAL.—In the case of a mecha- than $6.15 an hour today will see a di- teenage unemployment rate has de- nism described in subparagraph (A) or (B) of clined by 1.3 percentage points. The un- paragraph (3), a State shall not be considered rect increase in their pay, and another to be implementing an acceptable alter- 8 million Americans earning between employment rate for African-Ameri- native mechanism unless the mechanism $6.15 and $7.15 an hour are also likely to cans has declined by 1 percentage point limits the amount of premium rates that benefit from the increase. over the same period. may be charged to eligible individuals to not The nation’s economy is the best it Seventeen renowned economists—in- more than 150 percent of the standard risk has been in decades. Under the leader- cluding Nobel Prize winner Lawrence rate. ship of President Clinton, the country R. Klein and former Secretary of Labor ‘‘(B) STANDARD RISK RATE.—For purposes of as a whole is enjoying a remarkable pe- Ray Marshall—recently wrote to Presi- subparagraph (A), the term ‘standard risk riod of growth and prosperity. Enter- dent Clinton, supporting an increase in rate’ means— the minimum wage. According to these ‘‘(i) in the case of a mechanism under para- prise and entrepreneurship are flour- graph (3)(A), and as determined by the Sec- ishing—generating an extraordinary experts, ‘‘the 1996 and 1997 increases retary to be appropriate with respect to the expansion, with remarkable effi- had a beneficial effect, not only on State mechanism involved— ciencies and job creation. The stock those whose earnings were increased by ‘‘(I) the rate determined under section market is soaring. Inflation is low, un- 90 cents an hour, but also on the econ- 2741(h)(2)(A); employment is low, and interest rates omy as a whole. Billions in added con- ‘‘(II) the rate determined pursuant to the are low. sumer demand helped fuel our expand- standards included in the Model Plan de- ing economy in those years. . . . Given scribed in paragraph (2)(B); or In the past 30 years, the stock mar- ‘‘(III) the rate determined pursuant to such ket, adjusted for inflation, has gone up the nation’s low unemployment rate other method of calculation as is determined by 115%. In 1997, the average compensa- and strong economy without inflation, by the State and approved by the Secretary tion of a Wall Street executive was now is the time to deepen our public as appropriate to achieve the goal of this $280,000—a stunning $120,000 increase commitment to a decent minimum subsection; and over 1996. These lavish salaries con- wage.’’ ‘‘(ii) in the case of a mechanism under trast starkly with the 30% decline in The American people understand paragraph (3)(B), the rate determined under that you can’t raise a family on $5.15 section 2741(h)(2)(A).’’. the value of the minimum wage over the past three decades. To have the an hour. We intend to do all we can to SEC. 3. EFFECTIVE DATE. see that the minimum wage is in- The amendments made by— purchasing power it had in 1968, the (1) section 2(a) shall apply to health insur- minimum wage would have to be $7.38 creased this year. No one who works ance coverage offered, sold, issued, renewed, an hour today, instead of $5.15. for a living should have to live in pov- in effect, or operated in the individual mar- But the benefits of this prosperity erty. ket on the date that is 6 months after the have not flowed fairly to minimum Mr. President, I ask unanimous con- date of enactment of this Act; and wage earners. Working 40 hours a week, sent that the text of the bill be printed (2) section 2(b) shall apply with respect to 52 weeks a year, they earn $10,712 a in the RECORD. a State that adopted an alternative mecha- There being no objection, the bill was nism under section 2744 of the Public Health year—$2,600 below the poverty line for a family of three. ordered to be printed in the RECORD, as Service Act (42 U.S.C. 300gg–44) on the date follows: that is 1 year after the date of enactment of According to the Department of this Act. Labor, 60% of minimum wage earners S. 1805 are women. Nearly three-fourths are Be it enacted by the Senate and House of Rep- By Mr. KENNEDY (for himself, adults. Three-fifths are the sole bread- resentatives of the United States of America in Congress assembled, Mr. DODD, Mr. DASCHLE, Mr. winners in their families. More than SECTION 1. SHORT TITLE. INOUYE, Mr. BUMPERS, Mr. half work full time. These families This act may be cited as the ‘‘Fair Mini- LEAHY, Mr. MOYNIHAN, Mr. SAR- need help, and they deserve this in- mum Wage Act of 1998’’. BANES, Mr. LEVIN, Mr. LAUTEN- crease in the minimum wage. SEC. 2. MINIMUM WAGE INCREASE. BERG, Mr. HARKIN, Mr. KERRY, Increasing the minimum wage can (a) WAGE.—Paragraph (1) of section 6(a) of Mr. ROCKEFELLER, Ms. MIKUL- make all the difference to these work- the Fair Labor Standards Act of 1938 (29 SKI, Mr. WELLSTONE, Mrs. ers and their families. They will be U.S.C. 206(a)(1)) is amended to read as fol- BOXER, Mr. FEINGOLD, Mrs. able to survive without food stamps or lows: ‘‘(1) except as otherwise provided in this FEINSTEIN, Ms. MOSELEY- other social services to supplement section, not less than— BRAUN, Mr. DURBIN, Mr. REED, their incomes. They can fix up their ‘‘(A) $5.65 an hour during the year begin- and Mr. TORRICELLI): homes and invest in their neighbor- ning on January 1, 1999; and S. 1805. A bill to amend the Fair hoods. They can spend more at the ‘‘(B) $6.15 an hour during the year begin- Labor Standards Act of 1938 to increase local grocery store. They can work two ning on January 1, 2000.’’. the Federal minimum wage; to the jobs rather than three, and spend more (b) EFFECTIVE DATE.—The amendment Committee on Labor and Human Re- made by subsection (a) takes effect on Janu- time with their families. Their utilities ary 1, 1999. sources. won’t be cut off. They can pay the med- THE FAIR MINIMUM WAGE ACT OF 1998 ical bills they accumulated from not By Mr. COCHRAN (for himself Mr. KENNEDY. Mr. President, it is having health benefits at their jobs. As and Mr. INOUYE): an honor to join with Senator DASCHLE one minimum wage earner told me ear- S. 1806. A bill to state the policy of and other Democratic Senators to in- lier this year, ‘‘The best welfare reform the United States regarding the de- troduce the Fair Minimum Wage Act of is an increase in the minimum wage.’’ ployment of a missile defense system S2306 CONGRESSIONAL RECORD — SENATE March 19, 1998 capable of defending the territory of of previously classified, arcane tech- equipped with a weapon of mass de- the United States against limited bal- nical information available to anyone struction would be catastrophic, in- listic missile attack; to the Committee with Internet access. Advances in com- flicting death and injury to potentially on Armed Services. mercial aerospace have made once-ex- thousands of American citizens. Even THE AMERICAN MISSILE PROTECTION ACT OF 1998 otic components and materials com- the threat of such an attack could con- Mr. COCHRAN. Mr. President, I am monplace and more easily obtainable, strain American options in dealing introducing today a bill to make it the and the demand for space-based tele- with regional challenges to our inter- policy of the United States to deploy a communications has vastly increased ests, deter us from taking action, or national missile defense system as soon demand for space launch vehicles. prompt allies to question America’s se- as technology permits. I am pleased These developments mean that the curity guarantees. All of this would that the distinguished Senator from technical information, hardware, and have serious consequences for the Hawaii, Mr. INOUYE, is joining me as other resources necessary to build bal- United States and international stabil- cosponsor of this legislation, the Amer- listic missiles are increasingly avail- ity. ican Missile Protection Act of 1998. able and accessible worldwide. The fifth finding is that it is impera- A new type of ballistic missile threat So, too, is scientific and technical ex- tive for the United States to be pre- is emerging in the world today, one pertise from Russia and China, which pared for rogue nations acquiring long- that derives not from a cold war strate- have been primary suppliers of equip- range ballistic missiles armed with gic balance but from the increasing ment, materials, and technology relat- weapons of mass destruction. The Sen- proliferation of ballistic missile tech- ed to weapons of mass destruction. Ef- ate, in its resolution of ratification for nology, from the stated desire of some forts by the administration to stop the START II treaty, declared that nation states to acquire such delivery such assistance from these two coun- ‘‘. . . because deterrence may be inad- systems, and from their evident tries have not been successful. equate to protect the United States progress in doing so. Last year, the America’s well-known vulnerability against long-range ballistic missile Governmental Affairs Subcommittee serves to feed this growing threat. As threats, missile defenses are a nec- on International Security, Prolifera- long as potential adversaries know we essary part of new deterrent strate- tion, and Federal Services held a series cannot defend ourselves against these gies.’’ Former Defense Secretary Perry of 11 hearings examining proliferation- weapons, they have every incentive to said in 1994 that we have an oppor- related issues. The evidence from those acquire or develop them. tunity to move from ‘‘mutual assured hearings forms the basis for the find- The third finding in the bill is that destruction’’ to ‘‘mutual assured safe- ings in this bill. the ability of the United States to an- First, we found, and this bill recites, ty.’’ And in 1997, the Under Secretary ticipate the rate of progress in rogue that the threat of weapons of mass de- of Defense for Policy testified in the ballistic missile programs is question- struction delivered by long-range bal- Senate that we ‘‘are quite willing to able. In the past, the United States has listic missiles is among the most seri- acknowledge that if we saw a rogue ous security issues facing the United been surprised by the technical innova- state, a potential proliferant, begin- States. There is widespread agreement tion of other nations, particularly with ning to develop a long-range ICBM ca- on this. For the last 4 years, the Presi- respect to ballistic missiles. There are pable of reaching the United States, we dent has annually declared that the many reasons for this, including help would have to give very, very serious proliferation of nuclear, biological, and from other nations and the willingness attention to deploying a limited na- chemical weapons, and the means of of some states to field systems with tional missile defense.’’ Mr. President, delivering such weapons, constitute lower accuracy requirements than our Nation’s interests will be served ‘‘an unusual and extraordinary threat would be acceptable to the United better being prepared 1 year too soon to the national security, foreign policy, States. In both cases, the result can be rather than 1 year too late. and economy of the United States.’’ progress that is more rapid than ex- This bill’s sixth and final finding ac- And the Senate said in legislation in pected. Just 2 months ago, for example, knowledges the United States has no 1996 that ‘‘it is in the supreme interest the Director of Central Intelligence defenses deployed against weapons of of the United States to defend itself stated, ‘‘Iran’s success in getting tech- mass destruction delivered by long- from the threat of limited ballistic nology and materials from Russian range ballistic missiles and no policy missile attack, whatever the source.’’ companies, combined with recent in- to deploy such a national missile de- The second finding in the bill is that digenous Iranian advances means that fense system. We have only a policy to the long-range ballistic missile threat it could have a medium-range missile wait and see. to the United States is increasing. The much sooner than I assessed last year.’’ The bill in its final paragraph pro- leaders of several rogue states have That year, last year, in 1997, Mr. vides, ‘‘It is the policy of the United stated their belief that missiles capa- Tenet testified that Iran could have States to deploy as soon as techno- ble of striking our territory would en- such a missile by 2007, the year 2007. logically possible, a National Missile able them to coerce or deter the United While he didn’t say how much sooner Defense system capable of defending States, and they have declared their than 2007 when he testified recently, the territory of the United States desire and intent to acquire these de- State Department officials have testi- against limited ballistic missile attack livery systems. Ballistic missiles are fied since then that Iran could develop (whether accidental, unauthorized, or increasingly the weapon of choice. this missile this year, 9 years earlier deliberate).’’ They were used only once between than had been predicted only a year This policy statement accomplishes World War II and 1980, but thousands ago. two things. It sends a clear message to have been fired in at least six conflicts Iran’s rapid progress demonstrates any rogue state seeking ballistic mis- since 1980. Furthermore, the clear how external assistance can affect the sile delivery systems that America will trend is toward missiles with greater pace of missile programs. And, of not be vulnerable to these weapons in- range. For example, since the early course, predicting the amount of out- definitely. And, second, it affirms that 1980s, North Korea has progressed from side assistance any nation will receive the United States will take the steps having to purchase 300-kilometer-range is nearly impossible. The CIA has rec- necessary to protect its citizens from Scud missiles to developing its own ognized this difficulty, stating recently missile attack. That is what the bill is. 6,000-kilometer-range ballistic missile, to the Senate that, ‘‘gaps and uncer- That is what it says. which the intelligence community says tainties preclude a good projection of Now, let me briefly say what it is may be capable of striking Alaska and exactly when ‘rest of the world’ coun- not. It is not a referendum on the ABM Hawaii in less than 15 years. Iran’s tries will deploy ICBMs.’’ Treaty. It does not prescribe a specific progress in developing extended range This bill’s fourth finding is that the system architecture. It does not man- missiles has been dramatic and sudden, failure to prepare a defense against date a deployment date, only that we posing a new threat to U.S. forces in ballistic missiles could have grave se- deploy as soon as the technology is the Middle East. curity and foreign policy consequences ready. It is not a directive to negotiate The technological advances of the in- for the United States. An attack on the or cooperate on missile defense pro- formation age have made vast amounts United States by a ballistic missile grams. It does not initiate studies or March 19, 1998 CONGRESSIONAL RECORD — SENATE S2307 reports. Nor is it a declaration that the (i) Libyan leader Muammar Qaddafi has pace of those efforts. In June of 1997, the Di- only weapon of mass destruction threat stated, ‘‘If they know that you have a deter- rector of Central Intelligence, reporting to to the United States is from weapons rent force capable of hitting the United Congress on weapons of mass destruction-re- delivered by long-range ballistic mis- States, they would not be able to hit you. If lated equipment, materials, and technology, we had possessed a deterrent—missiles that stated that ‘‘China and Russia continued to siles—other delivery methods are also could reach New York—we would have hit it be the primary suppliers, and are key to any of concern but we have programs in at the same moment. Consequently, we future efforts to stem the flow of dual-use place to defend against those threats. should build this force so that they and oth- goods and modern weapons to countries of This bill is designed to deal only with ers will no longer think about an attack.’’ concern.’’ the accelerating proliferation threat. (ii) Abu Abbas, the head of the Palestine (G) Russia and China continue to engage in In his State of the Union Address Liberation Front, has stated, ‘‘I would love missile proliferation. President Clinton said, ‘‘preparing for to be able to reach the American shore, but (i) Despite numerous Russian assurances this is very difficult. Someday an Arab coun- a far off storm that may reach our not to assist Iran with its ballistic missile try will have ballistic missiles. Someday an program, the Deputy Assistant Secretary of shores is far wiser than ignoring the Arab country will have a nuclear bomb. It is thunder ’til the clouds are just over- State for Nonproliferation testified to the better for the United States and for Israel to Senate, that ‘‘the problem is this: there is a head.’’ He wasn’t talking about na- reach peace with the Palestinians before disconnect between those reassurances, tional missile defense, but his words do that day.’’ which we welcome, and what we believe is (iii) Saddam Hussein has stated, ‘‘Our mis- apply precisely to this dilemma. We actually occurring.’’ siles cannot reach Washington. If we could are hearing the thunder now, and the (ii) Regarding China’s actions to dem- reach Washington, we would strike if the time has come to declare to our citi- onstrate the sincerity of its commitment to need arose.’’ nonproliferation, the Director of Central In- zens and to the world and to dem- (iv) Iranian actions speak for themselves. telligence testified to the Senate on January onstrate by our actions that the United Iran’s aggressive pursuit of medium-range 28, 1998, that, ‘‘the jury is still out on wheth- States will not remain defenseless ballistic missiles capable of striking Central against ballistic missiles. That should Europe—aided by the continuing collabora- er the recent changes are broad enough in scope and whether they will hold over the be our policy and this bill states that it tion of outside agents—demonstrates Tehran’s intent to acquire ballistic missiles longer term. As such, Chinese activities in is our policy. this area will require continued close watch- A letter to all Senators is going out of ever-increasing range. (B) Over 30 non-NATO countries possess ing.’’ inviting cosponsors to join us when we ballistic missiles, with at least 10 of those (H) The inability of the United States to reintroduce the bill within the next 2 countries developing over 20 new types of defend itself against weapons of mass de- weeks. I ask unanimous consent a copy ballistic missiles. struction delivered by long-range ballistic of the bill be printed in the RECORD. (C) From the end of World War II until missile provides additional incentive for hos- There being no objection, the bill was 1980, ballistic missiles were used in one con- tile nations to develop long-range ballistic missiles with which to threaten the United ordered to be printed in the RECORD, as flict. Since 1980, thousands of ballistic mis- siles have been fired in at least six different States. Missiles are widely viewed as valu- follows: able tools for deterring and coercing a vul- S. 1806 conflicts. (D) The clear trend among countries hos- nerable United States. Be it enacted by the Senate and House of Rep- tile to the United States is toward having (3) The ability of the United States to an- resentatives of the United States of America in ballistic missiles of greater range. ticipate future ballistic missile threats is Congress assembled, (i) North Korea first acquired 300-kilo- questionable. SECTION 1. SHORT TITLE. meter range Scud Bs, then developed and de- (A) The Intelligence Community has failed This Act may be cited at the ‘‘American ployed 500-kilometer range Scud Cs, is cur- to anticipate many past technical innova- Missile Protection Act of 1998’’. rently deploying the 1000-kilometer range tions (for example, Iraq’s extended-range Al- SEC. 2. FINDINGS. No-Dong, and is developing the 2000-kilo- Hussein missiles and its development of a Congress makes the following findings: meter range Taepo-Dong 1 and 6000-kilo- space launch vehicle) and outside assistance (1) The threat of weapons of mass destruc- meter range Taepo-Dong 2, which would be enables rogue states to surmount traditional tion delivered by long-range ballistic mis- capable of striking Alaska and Hawaii. technological obstacles to obtaining or de- siles is among the most serious security (ii) Iran acquired 150-kilometer range CSS- veloping ballistic missiles of increasing issues facing the United States. 8s, progressed through the Scud B and Scud range. (A) In a 1994 Executive Order, President C, and is developing the 1300-kilometer range (B) In June of 1997, the Director of Central Clinton certified, that ‘‘I . . . find that the Shahab-3 and 2000-kilometer range Shahab-4, Intelligence reported to Congress that proliferation of nuclear, biological, and which would allow Iran to strike Central Eu- ‘‘many Third World countries—with Iran chemical weapons (‘weapons of mass destruc- rope. being the most prominent example—are re- tion’) and the means of delivering such weap- (iii) Iraq, in a two-year crash program, pro- sponding to Western counter-proliferation ons, constitute an unusual and extraordinary duced a new missile, the Al-Hussein, with efforts by relying more on legitimate com- threat to the national security, foreign pol- twice the range of its Scud Bs. mercial firms as procurement fronts and by icy, and economy of the United States, and (iv) Experience gained from extending the developing more convoluted procurement hereby declare a national emergency to deal range of short- and medium-range ballistic networks.’’ with that threat.’’ This state of emergency missiles facilitates the development of inter- (C) In June of 1997, the Director of Central was reaffirmed in 1995, 1996, and 1997. continental ballistic missiles. Intelligence stated to Congress that ‘‘gaps (B) In 1994 the President stated, that (E) The technical information, hardware, and uncertainties preclude a good projection ‘‘there is nothing more important to our se- and other resources necessary to build ballis- of exactly when ‘rest of the world’ countries curity and the world’s stability than pre- tic missiles are increasingly available and will deploy ICBMs.’’ venting the spread of nuclear weapons and accessible worldwide. (D) In 1997, the Director of Central Intel- ballistic missiles’’. (i) Due to advances in information tech- ligence testified that Iran would have a me- (C) Several countries hostile to the United nology, a vast amount of technical informa- dium-range missile by 2007. One year later States have been particularly determined to tion relating to ballistic missile design, the Director stated, ‘‘since I testified, Iran’s acquire missiles and weapons of mass de- much of it formerly classified, has become success in getting technology and materials struction. President Clinton observed in Jan- widely available and is increasingly acces- from Russian companies, combined with re- uary of 1998, for example, that ‘‘Saddam Hus- sible through the Internet and other dis- cent indigenous Iranian advances, means sein has spent the better part of this decade, tribution avenues. that it could have a medium-range missile and much of his nation’s wealth, not on pro- (ii) Components, tools, and materials to much sooner than I assessed last year.’’ De- viding for the Iraqi people, but on developing support ballistic missile development are in- partment of State officials have testified nuclear, chemical and biological weapons creasingly available in the commercial aero- that Iran could be prepared to deploy such a and the missiles to deliver them’’. space industry. missile as early as late 1998, nine years ear- (D) In 1996, the Senate affirmed that, ‘‘it is (iii) Increasing demand for satellite-based lier than had been predicted one year before in the supreme interest of the United States telecommunications is adding to the demand by the Director of Central Intelligence. to defend itself from the threat of limited for commercial Space Launch Vehicles, (4) The failure to prepare adequately for ballistic missile attack, whatever the which employ technology that is essentially long-range ballistic missile threats could source.’’ identical to that of intercontinental ballistic have severe national security and foreign (2) The long-range ballistic missile threat missiles. As this increasing demand is met, policy consequences for the United States. to the United States is increasing. the technology and expertise associated with (A) An attack on the United States by a (A) Several adversaries of the United space launch vehicles also proliferate. ballistic missile equipped with a weapon of States have stated their intention to acquire (F) Russia and China have provided signifi- mass destruction could inflict catastrophic intercontinental ballistic missiles capable of cant technical assistance to rogue nation death or injury to citizens of the United attacking the United States. ballistic missile programs, accelerating the States and severe damage to their property. S2308 CONGRESSIONAL RECORD — SENATE March 19, 1998 (B) A rogue state’s ability to threaten the S. 778 tain Federal property shall be made United States with an intercontinental bal- At the request of Mr. LUGAR, the available to States for State use before listic missile may constrain the United name of the Senator from Vermont being made available to other entities, States’ options in dealing with regional (Mr. JEFFORDS) was added as a cospon- and for other purposes. threats to its interests, deter the United States from taking appropriate action, or sor of S. 778, a bill to authorize a new S. 1644 prompt allies to question United States secu- trade and investment policy for sub-Sa- At the request of Mr. REED, the name rity guarantees, thereby weakening alliances haran African. of the Senator from New Mexico (Mr. of the United States and the United States’ S. 1321 BINGAMAN) was added as a cosponsor of world leadership position. At the request of Mr. TORRICELLI, the S. 1644, a bill to amend subpart 4 of (5) The United States must be prepared for name of the Senator from New York part A of title IV of the Higher Edu- rogue nations acquiring long-range ballistic missiles armed with weapons of mass de- (Mr. D’AMATO) was added as a cospon- cation Act of 1965 regarding Grants to struction. sor of S. 1321, a bill to amend the Fed- States for State Student Incentives. (A) In its resolution of ratification for the eral Water Pollution Control Act to S. 1647 START II Treaty, the United States Senate permit grants for the national estuary At the request of Mr. BAUCUS, the declared that ‘‘because deterrence may be in- program to be used for the develop- name of the Senator from Washington adequate to protect the United States ment and implementation of a com- (Mrs. MURRAY) was added as a cospon- against long-range ballistic missile threats, prehensive conservation and manage- sor of S. 1647, a bill to reauthorize and missile defenses are a necessary part of new ment plan, to reauthorize appropria- deterrent strategies.’’ make reforms to programs authorized (B) In September of 1994, Secretary of De- tions to carry out the program, and for by the Public Works and Economic De- fense Perry stated that in the post-Cold War other purposes. velopment Act of 1965. era, ‘‘we now have opportunity to create a S. 1325 S. 1667 new relationship based not on MAD, not on At the request of Mr. FRIST, the At the request of Mr. GRASSLEY, the Mutual Assured Destruction, but rather on names of the Senator from Massachu- name of the Senator from Michigan another acronym, MAS, or Mutual Assured setts (Mr. KENNEDY), the Senator from Safety.’’ (Mr. ABRAHAM) was added as a cospon- Maine (Ms. SNOWE), and the Senator (C) On February 12, 1997, the Under Sec- sor of S. 1667, a bill to amend section retary of Defense for Policy testified to the from Vermont (Mr. JEFFORDS) were 2164 of title 10, United States Code, to Senate that ‘‘I and the administration are added as cosponsors of S. 1325, a bill to clarify the eligibility of dependents of quite willing to acknowledge that if we saw authorize appropriations for the Tech- United States Service employees to en- a rogue state, a potential proliferant, begin- nology Administration of the Depart- roll in Department of Defense depend- ning to develop a long-range ICBM capable of ment of Commerce for fiscal years 1998 ents schools in Puerto Rico. reaching the United States, we would have and 1999, and for other purposes. S. 1677 to give very, very serious attention to de- S. 1352 ploying a limited national missile defense.’’ At the request of Mr. CHAFEE, the (6) The United States has no defense de- At the request of Mr. GRASSLEY, the names of the Senator from Pennsyl- ployed against weapons of mass destruction name of the Senator from South Caro- vania (Mr. SANTORUM) and the Senator delivered by long-range ballistic missiles and lina (Mr. THURMOND) was added as a co- from New Hampshire (Mr. GREGG) were no policy to deploy such a national missile sponsor of S. 1352, A bill to amend Rule added as cosponsors of S. 1677, a bill to defense system. 30 of the Federal Rules of Civil Proce- reauthorize the North American Wet- SEC. 3. NATIONAL MISSILE DEFENSE POLICY. dure to restore the stenographic pref- lands Conservation Act and the Part- It is the policy of the United States to de- erence for depositions. nerships for Wildlife Act. ploy as soon as is technologically possible a S. 1413 National Missile Defense system capable of S. 1695 defending the territory of the United States At the request of Mr. LUGAR, the At the request of Mr. CAMPBELL, the against limited ballistic missile attack name of the Senator from Oklahoma name of the Senator from Colorado (whether accidental, unauthorized, or delib- (Mr. NICKLES) was added as a cosponsor (Mr. ALLARD) was added as a cosponsor erate). of S. 1413, a bill to provide a framework of S. 1695, a bill to establish the Sand f for consideration by the legislative and Creek Massacre National Historic Site executive branches of unilateral eco- in the State of Colorado. ADDITIONAL COSPONSORS nomic sanctions. S. 1747 S. 217 S. 1423 At the request of Mr. GRASSLEY, the At the request of Mr. BIDEN, the At the request of Mr. HAGEL, the name of the Senator from New York name of the Senator from Minnesota name of the Senator from Mississippi (Mr. D’AMATO) was added as a cospon- (Mr. GRAMS) was added as a cosponsor (Mr. LOTT) was added as a cosponsor of sor of S. 1747, a bill to amend the Inter- of S. 217, a bill to amend title 38, S. 1423, a bill to modernize and improve nal Revenue Code of 1986 to provide for United States Code, to provide for the the Federal Home Loan Bank System. additional taxpayer rights and tax- payment to States of plot allowances S. 1504 payer education, notice, and resources, for certain veterans eligible for burial At the request of Mr. GRAHAM, the and for other purposes. in a national cemetery who are buried name of the Senator from New York S. 1758 in cemeteries of such States. (Mr. D’AMATO) was added as a cospon- At the request of Mr. LUGAR, the S. 597 sor of S. 1504, a bill to adjust the immi- name of the Senator from New Mexico At the request of Mr. BINGAMAN, the gration status of certain Haitian na- (Mr. BINGAMAN) was added as a cospon- name of the Senator from Illinois (Ms. tionals who were provided refuge in the sor of S. 1758, a bill to amend the For- MOSELEY-BRAUN) was added as a co- United States. eign Assistance Act of 1961 to facilitate sponsor of S. 597, a bill to amend title S. 1572 protection of tropical forests through XVIII of the Social Security Act to At the request of Mr. BRYAN, the debt reduction with developing coun- provide for coverage under part B of names of the Senator from Indiana tries with tropical forests. the medicare program of medical nutri- (Mr. COATS), the Senator from Ne- S. 1760 tion therapy services furnished by reg- braska (Mr. HAGEL), and the Senator At the request of Mr. LEVIN, the istered dietitians and nutrition profes- from Missouri (Mr. BOND) were added name of the Senator from Ohio (Mr. sionals. as cosponsors of S. 1572, a bill to pro- GLENN) was added as a cosponsor of S. S. 766 hibit the Secretary of the Interior from 1760, a bill to amend the National Sea At the request of Ms. SNOWE, the promulgating certain regulations re- Grant College Program Act to clarify name of the Senator from Vermont lating to Indian gaming activities. the term Great Lakes. (Mr. LEAHY) was added as a cosponsor S. 1621 S. 1764 of S. 766, a bill to require equitable cov- At the request of Mr. GRAMS, the At the request of Mr. THURMOND, the erage of prescription contraceptive name of the Senator from Mississippi name of the Senator from Utah (Mr. drugs and devices, and contraceptive (Mr. COCHRAN) was added as a cospon- HATCH) was added as a cosponsor of S. services under health plans. sor of S. 1621, a bill to provide that cer- 1764, a bill to amend sections 3345 March 19, 1998 CONGRESSIONAL RECORD — SENATE S2309 through 3349 of title 5, United States Mr. COATS submitted an amendment trust fund to be known as the ‘Trust Fund Code (commonly referred to as the intended to be proposed by him to the for DC Schools’, consisting of such amounts ‘‘Vacancies Act’’) to clarify statutory bill (H.R. 2646) to amend the Internal as may be appropriated or credited to the requirements relating to vacancies in Revenue Code of 1986 to allow tax-free Fund as provided in this section. certain Federal offices, and for other expenditures from education individual ‘‘(b) TRANSFER TO TRUST FUND OF AMOUNTS EQUIVALENT TO CERTAIN TAXES.— purposes. retirement accounts for elementary ‘‘(1) IN GENERAL.—There are hereby appro- SENATE JOINT RESOLUTION 40 and secondary school expenses, to in- priated to the Trust Fund for DC Schools At the request of Mr. GRAHAM, his crease the maximum annual amount of amounts equivalent to 50 percent of the reve- name was added as a cosponsor of Sen- contributions to such accounts, and for nues received in the Treasury resulting from ate Joint Resolution 40, a joint resolu- other purposes; as follows: the amendment made by section 201 of the tion proposing an amendment to the At the end of title I, add the following: Parent and Student Savings Account PLUS Act. Constitution of the United States au- SEC. ll. ADDITIONAL INCENTIVE TO MAKE DO- ‘‘(2) TRANSFER OF AMOUNTS.—The amounts thorizing Congress to prohibit the NATIONS TO SCHOOLS OR ORGANI- ZATIONS WHICH OFFER SCHOLAR- appropriated by paragraph (1) shall be trans- physical desecration of the flag of the SHIPS. ferred at least monthly from the general United States. (a) IN GENERAL.—Section 170 (relating to fund of the Treasury to the Trust Fund for SENATE RESOLUTION 176 charitable, etc., contributions and gifts) is DC Schools on the basis of estimates made by the Secretary of the amounts referred to At the request of Mr. DOMENICI, the amended by redesignating subsection (m) as in such paragraph. Proper adjustments shall names of the Senator from Wyoming subsection (n) and by inserting after sub- section (l) the following: be made in the amounts subsequently trans- (Mr. ENZI), the Senator from Delaware ‘‘(m) TREATMENT OF AMOUNTS PAID TO CER- ferred to the extent prior estimates were in (Mr. BIDEN), the Senator from Arkan- TAIN EDUCATIONAL ORGANIZATIONS.— excess of or less than the amounts required sas (Mr. HUTCHINSON), and the Senator ‘‘(1) IN GENERAL.—For purposes of this sec- to be transferred. from Ohio (Mr. DEWINE) were added as tion, 110 percent of any amount described in ‘‘(c) EXPENDITURES FROM FUND.— cosponsors of Senate Resolution 176, a paragraph (2) shall be treated as a charitable ‘‘(1) IN GENERAL.—Amounts in the Trust resolution proclaiming the week of Oc- contribution. Fund for DC Schools shall be available, with- tober 18 through October 24, 1998, as ‘‘(2) AMOUNT DESCRIBED.—For purposes of out fiscal year limitation, in an amount not ‘‘National Character Counts Week.’’ paragraph (1), an amount is described in this to exceed $2,000,000,000 for the period begin- paragraph if the amount— ning after December 31, 1998, and ending be- SENATE RESOLUTION 189 ‘‘(A) is paid in cash by the taxpayer to or fore January 1, 2009, for qualified service ex- At the request of Mr. TORRICELLI, the for the benefit of a qualified organization, penses with respect to State or local bonds names of the Senator from Delaware and issued by the District of Columbia to finance (Mr. BIDEN), the Senator from Ohio ‘‘(B) is used by such organization to pro- the construction, rehabilitation, and repair (Mr. GLENN), the Senator from Massa- vide qualified scholarships (as defined in sec- of schools under the jurisdiction of the gov- tion 117(b)) to any individual attending kin- chusetts (Mr. KENNEDY), the Senator ernment of the District of Columbia. dergarten through grade 12 whose family in- ‘‘(2) QUALIFIED SERVICE EXPENSES.—The from Wisconsin (Mr. KOHL), the Sen- come does not exceed 185 percent of the pov- term ‘qualified service expenses’ means ex- ator from Virginia (Mr. ROBB), and the erty line for a family of the size involved. penses incurred after December 31, 1998, and Senator from West Virginia (Mr. ‘‘(3) DEFINITIONS.—For purposes of this sub- certified by the District of Columbia Control ROCKEFELLER) were added as cospon- section— Board as meeting the requirements of para- sors of Senate Resolution 189, a resolu- ‘‘(A) QUALIFIED ORGANIZATION.—The term graph (1) after giving notice of any proposed tion honoring the 150th anniversary of ‘qualified organization’ means— certification to the Subcommittees on the the United States Women’s Rights ‘‘(i) an educational organization— District of Columbia of the Committees on Movement that was initiated by the ‘‘(I) which is described in subsection Appropriations of the House of Representa- (b)(1)(A)(ii), and 1848 Women’s Rights Convention held tives and the Senate. ‘‘(II) which provides elementary education ‘‘(d) REPORT.—It shall be the duty of the in Seneca Falls, New York, and calling or secondary education (kindergarten for a national celebration of women’s Secretary to hold the Trust Fund for DC through grade 12), as determined under State Schools and to report to the Congress each rights in 1998. law, or year on the financial condition and the re- SENATE RESOLUTION 195 ‘‘(ii) an organization which is described in sults of the operations of such Fund during section 501(c)(3) and exempt from taxation At the request of Mrs. HUTCHISON, the the preceding fiscal year and on its expected under section 501(a). names of the Senator from Louisiana condition and operations during the next fis- ‘‘(B) POVERTY LINE.—The term ‘poverty (Ms. LANDRIEU), the Senator from New cal year. Such report shall be printed as a line’ means the income official poverty line House document of the session of the Con- Jersey (Mr. TORRICELLI), the Senator (as defined by the Office of Management and gress to which the report is made. from New Mexico (Mr. DOMENICI), and Budget, and revised annually in accordance ‘‘(e) INVESTMENT.— the Senator from Oklahoma (Mr. with section 673(2) of the Omnibus Budget ‘‘(1) IN GENERAL.—It shall be the duty of Reconciliation Act of 1981) applicable to a INHOFE) were added as cosponsors of the Secretary to invest such portion of the family of the size involved.’’ Senate Resolution 195, a bill designat- Trust Fund for DC Schools as is not, in the (b) PROHIBITION ON ANY DEDUCTION FOR ing the week of March 22 through Secretary’s judgment, required to meet cur- GAMBLING LOSSES.—Section 165(d) (relating rent withdrawals. Such investments may be March 28, 1998, as ‘‘National Corrosion to wagering losses) is amended to read as fol- made only in interest-bearing obligations of Prevention Week.’’ lows: the United States. For such purpose, such SENATE RESOLUTION 198 ‘‘(d) NO DEDUCTION FOR WAGERING obligations may be acquired— LOSSES.—No deduction shall be allowed for At the request of Mr. MACK, the ‘‘(A) on original issue at the issue price, or losses from wagering transactions.’’ names of the Senator from Arkansas ‘‘(B) by purchase of outstanding obliga- (c) EFFECTIVE DATE.—The amendments (Mr. HUTCHINSON) and the Senator from tions at the market price. made by this section shall apply to taxable ‘‘(2) SALE OF OBLIGATIONS.—Any obligation Wisconsin (Mr. FEINGOLD) were added years beginning after December 31, 1998. as cosponsors of Senate Resolution 198, acquired by the Trust Fund for DC Schools may be sold by the Secretary at the market a resolution designating April 1, 1998, JEFFORDS AMENDMENT NO. 2025 as ‘‘National Breast Cancer Survivors’ price. ‘‘(3) INTEREST ON CERTAIN PROCEEDS.—The Day.’’ (Ordered to lie on the table.) Mr. JEFFORDS submitted an amend- interest on, and the proceeds from the sale f or redemption of, any obligations held in the ment intended to be proposed by him AMENDMENTS SUBMITTED Trust Fund for DC Schools shall be credited to the bill, H.R. 2646, supra; as follows: to and form a part of the Trust Fund for DC Strike section 101 and insert: Schools.’’ THE EDUCATION SAVINGS ACT SEC. 101. TRUST FUND FOR DC SCHOOLS. (b) CONFORMING AMENDMENT.—The table of FOR PUBLIC AND PRIVATE (a) IN GENERAL.—Subchapter W of chapter sections for subchapter W of chapter 1 is 1 (relating to District of Columbia Enter- amended by adding after the item relating to SCHOOLS prise Zone) is amended by adding at the end section 1400C the following: the following: ‘‘Sec. 1400D. Trust Fund for DC Schools.’’ COATS AMENDMENT NO. 2024 ‘‘SEC. 1400D. TRUST FUND FOR DC SCHOOLS. ‘‘(a) CREATION OF FUND.—There is estab- In section 103(a), strike ‘‘December 31, (Ordered to lie on the table.) lished in the Treasury of the United States a 2002’’ and insert ‘‘June 30, 2002’’. S2310 CONGRESSIONAL RECORD — SENATE March 19, 1998 CONRAD AMENDMENT NO. 2026 ‘‘(C) SCHOOL.—The term ‘school’ means any Mr. REED submitted an amendment (Ordered to lie on the table.) school which provides elementary education intended to be proposed by him to the or secondary education (through grade 12), as bill, H.R. 2646, supra; as follows: Mr. CONRAD submitted an amend- determined under State law.’’ Strike section 101, and insert the follow- ment intended to be proposed by him (4) NO ROLLOVERS BETWEEN COLLEGE AC- ing: to the bill, H.R. 2646, supra; as follows: COUNTS AND NON-COLLEGE ACCOUNTS.—Section Strike section 101 and insert the following: SEC. 101. TEACHER EXCELLENCE IN AMERICA 530(d)(5) is amended by adding at the end the CHALLENGE. SEC. 101. MODIFICATIONS TO EDUCATION INDI- following: ‘‘This paragraph shall not apply to (a) AMENDMENT.—Part A of title V of the VIDUAL RETIREMENT ACCOUNTS. a transfer of an amount between an account Higher Education Act of 1965 (20 U.S.C. 1102 (a) TAX-FREE EXPENDITURES FOR ELEMEN- not described in subsection (b)(2)(A)(ii) and et seq.) is amended to read as follows: TARY AND SECONDARY SCHOOL EXPENSES.— an account so described.’’ ‘‘PART A—TEACHER EXCELLENCE IN (1) IN GENERAL.—Section 530(b)(2) is amend- (5) CONFORMING AMENDMENTS.—Subsections AMERICA CHALLENGE ed to read as follows: (b)(1) and (d)(2) of section 530 are each ‘‘(2) QUALIFIED EDUCATION EXPENSES.— amended by striking ‘‘higher’’ each place it ‘‘SEC. 501. SHORT TITLE. ‘‘(A) IN GENERAL.—The term ‘qualified edu- appears in the text and heading thereof. ‘‘This part may be cited as the ‘Teacher Excellence in America Challenge Act of 1997’. cation expenses’ means— (b) TEMPORARY INCREASE IN MAXIMUM AN- ‘‘(i) qualified higher education expenses (as NUAL CONTRIBUTIONS FOR ELEMENTARY AND ‘‘SEC. 502. PURPOSE. defined in section 529(e)(3)), and SECONDARY SCHOOL EXPENSES.— ‘‘The purpose of this part is to improve the ‘‘(ii) qualified elementary and secondary (1) IN GENERAL.—Section 530(b)(1)(A)(iii) is preparation and professional development of education expenses (as defined in paragraph amended by striking ‘‘$500’’ and inserting teachers and the academic achievement of (4)), but only if the account is, at the time ‘‘the contribution limit for such taxable students by encouraging partnerships among the account is created or organized, des- year’’. institutions of higher education, elementary schools or secondary schools, local edu- ignated solely for payment of qualified ele- (2) CONTRIBUTION LIMIT.—Section 530(b) is cational agencies, State educational agen- mentary and secondary education expenses amended by adding at the end the following cies, teacher organizations, and nonprofit or- of the designated beneficiary. new paragraph: ganizations. Such expenses shall be reduced as provided ‘‘(4) CONTRIBUTION LIMIT.—The term ‘con- in section 25A(g)(2). tribution limit’ means— ‘‘SEC. 503. GOALS. ‘‘The goals of this part are as follows: ‘‘(B) QUALIFIED STATE TUITION PROGRAMS.— ‘‘(A) except as provided in subparagraph ‘‘(1) To support and improve the education Except in the case of an account described in (B), $500, or of students and the achievement of higher subparagraph (A)(ii), such term shall include ‘‘(B) in the case of an account designated academic standards by students, through the amounts paid or incurred to purchase tuition under paragraph (2)(A)(ii)— enhanced professional development of teach- credits or certificates, or to make contribu- ‘‘(i) $2,500 for any taxable year ending be- ers. tions to an account, under a qualified State fore January 1, 2003, and tuition program (as defined in section 529(b)) ‘‘(2) To ensure a strong and steady supply ‘‘(ii) zero for any taxable year ending on or of new teachers who are qualified, well- for the benefit of the beneficiary of the ac- after such date.’’ count.’’ trained, and knowledgeable and experienced (3) CONFORMING AMENDMENTS.— in effective means of instruction, and who (2) ADJUSTED GROSS INCOME LIMITATION.— (A) Section 530(d)(4)(C) is amended by Section 530(c) is amended by redesignating represent the diversity of the American peo- striking ‘‘$500’’ and inserting ‘‘the contribu- ple, in order to meet the challenges of work- paragraph (2) as paragraph (4) and by insert- tion limit for such taxable year’’. ing after paragraph (1) the following: ing with students by strengthening (B) Section 4973(e)(1)(A) is amended by preservice education and induction of indi- ‘‘(2) SPECIAL RULE FOR ELEMENTARY AND striking ‘‘$500’’ and inserting ‘‘the contribu- SECONDARY EDUCATION EXPENSES.—Notwith- viduals into the teaching profession. tion limit (as defined in section 530(b)(4)) for ‘‘(3) To provide for the continuing develop- standing paragraph (1), in the case of an ac- such taxable year’’. count designated under subsection ment and professional growth of veteran (c) WAIVER OF AGE LIMITATIONS FOR CHIL- teachers. (b)(2)(A)(ii), the maximum amount which a DREN WITH SPECIAL NEEDS.—Paragraph (1) of contributor could otherwise make to an ac- ‘‘(4) To provide a research-based context section 530(b) is amended by adding at the for reinventing schools, teacher preparation count under this section shall be reduced by end the following flush sentence: an amount which bears the same ratio to programs, and professional development pro- such maximum amount as— ‘‘The age limitations in the preceding sen- grams, for the purpose of building and sus- ‘‘(A) the excess of— tence shall not apply to any designated bene- taining best educational practices and rais- ‘‘(i) the contributor’s modified adjusted ficiary with special needs (as determined ing student academic achievement. gross income for such taxable year, over under regulations prescribed by the Sec- ‘‘SEC. 504. DEFINITIONS. ‘‘(ii) $60,000, bears to retary).’’ ‘‘In this part: ‘‘(B) $15,000. (d) EFFECTIVE DATE.—The amendments ‘‘(1) ELEMENTARY SCHOOL.—The term ‘ele- ‘‘(3) CONTRIBUTIONS TREATED AS MADE BY IN- made by this section shall apply to taxable mentary school’ means a public elementary DIVIDUAL ELIGIBLE FOR DEPENDENCY EXEMP- years beginning after December 31, 1998. school. TION.—For purposes of applying this sub- ‘‘(2) INSTITUTION OF HIGHER EDUCATION.— section, any contribution by a person other BIDEN AMENDMENT NO. 2027 The term ‘institution of higher education’ than the taxpayer with respect to whom a means an institution of higher education deduction is allowable under section 151(c)(1) (Ordered to lie on the table.) that— for a designated beneficiary shall be treated Mr. BIDEN submitted an amendment ‘‘(A) has a school, college, or department of as having been made by such taxpayer.’’ intended to be proposed by him to the education that is accredited by an agency (3) QUALIFIED ELEMENTARY AND SECONDARY bill, H.R. 2646, supra; as follows: recognized by the Secretary for that purpose; EDUCATION EXPENSES.—Section 530(b) is At the appropriate place, add the follow- or amended by adding at the end the following ing: ‘‘(B) the Secretary determines has a new paragraph: SEC.. school, college, or department of education ‘‘(4) QUALIFIED ELEMENTARY AND SECONDARY (a) IN GENERAL.—Paragraph (2) of section of a quality equal to or exceeding the quality EDUCATION EXPENSES.— 135(b) of the Internal Revenue Code 1986 is of schools, colleges, or departments so ac- ‘‘(A) IN GENERAL.—The term ‘qualified ele- amended to read as follows: credited. mentary and secondary education expenses’ ‘‘(2) LIMITATION BASED ON MODIFIED AD- ‘‘(3) POVERTY LINE.—The term ‘poverty means— JUSTED GROSS INCOME.—If the modified ad- line’ means the poverty line (as defined by ‘‘(i) tuition, fees, tutoring, special needs justed gross income of the taxpayer for the the Office of Management and Budget, and services, books, or supplies in connection taxable year exceeds $95,000 ($150,000 in the revised annually in accordance with section with the enrollment or attendance of the case of a joint return), the amount which 673(2) of the Community Services Block designated beneficiary of the trust at a pub- would (but for this paragraph) be excludable Grant Act (42 U.S.C. 9902(2)) applicable to a lic, private, or religious school, or from gross income under subsection (a) shall family of the size involved. ‘‘(ii) computer equipment (including relat- be reduced (but not below zero) by the ‘‘(4) PROFESSIONAL DEVELOPMENT PARTNER- ed software and services) and other equip- amount which bears the same ratio to the SHIP.—The term ‘professional development ment, transportation, and supplementary ex- amount which would be so excludable as partnership’ means a partnership among 1 or penses required or provided by a public, pri- such excess bears to $15,000 ($10,000 in the more institutions of higher education, 1 or vate, or religious school in connection with case of a joint return). more elementary schools or secondary such enrollment or attendance. (b) EFFECTIVE DATE.—The amendment schools, and 1 or more local educational ‘‘(B) SPECIAL RULE FOR HOME-SCHOOLING.— made by this section shall apply to taxable agency based on a mutual commitment to Such term shall include expenses described years beginning after December 31, 1997. improve teaching and learning. The partner- in subparagraph (A) required for education ship may include a State educational agen- provided by homeschooling if the require- REED AMENDMENT NO. 2028 cy, a teacher organization, or a nonprofit or- ments of any applicable State or local law ganization whose primary purpose is edu- are met with respect to such education. (Ordered to lie on the table.) cation research and development. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2311

‘‘(5) PROFESSIONAL DEVELOPMENT SCHOOL.— ‘‘(D) An increased number of well-prepared ‘‘(9) activities designed to involve parents The term ‘professional development school’ individuals graduating from a school, col- in the partnership; means an elementary school or secondary lege, or department of education within an ‘‘(10) research to improve teaching and school that collaborates with an institution institution of higher education and entering learning by teachers in the professional de- of higher education for the purpose of— the teaching profession. velopment school and faculty at the institu- ‘‘(A) providing high quality instruction to ‘‘(E) Increased recruitment to, and gradua- tion of higher education; and students and educating students to higher tion from, a school, college, or department of ‘‘(11) activities designed to disseminate in- academic standards; education within an institution of higher formation, regarding the teaching strategies ‘‘(B) providing high quality student teach- education with respect to minority individ- and best practices implemented by the pro- ing and internship experiences at the school uals. fessional development school, to— for prospective and beginning teachers; and ‘‘(F) Increased placement of qualified and ‘‘(A) teachers in elementary schools or sec- ‘‘(C) supporting and enabling the profes- well-prepared teachers in elementary schools ondary schools, which are served by the local sional development of veteran teachers at or secondary schools, and increased assign- educational agency or located in the State, the school, and of faculty at the institution ment of such teachers to teach the subject that are not associated with the professional of higher education. matter in which the teachers received a de- development partnership; and ‘‘(6) SECONDARY SCHOOL.—The term ‘sec- gree or specialized training. ‘‘(B) institutions of higher education in the ondary school’ means a public secondary ‘‘(G) Increased dissemination of teaching State. school. strategies and best practices by teachers as- ‘‘(b) CONSTRUCTION PROHIBITED.—No grant ‘‘(7) TEACHER.—The term ‘teacher’ means sociated with the professional development funds provided under this part may be used an elementary school or secondary school school and faculty at the institution of high- for the construction, renovation, or repair of teacher.’’ er education. any school or facility. ‘‘SEC. 505. PROGRAM AUTHORIZED. ‘‘(e) PRIORITY.—In awarding grants under ‘‘SEC. 507. APPLICATIONS. ‘‘(a) IN GENERAL.—From the amount appro- this part, the Secretary shall give priority to ‘‘Each professional development partner- priated under section 511 and not reserved professional development partnerships serv- ship desiring a grant under this part shall under section 509 for a fiscal year, the Sec- ing elementary schools, secondary schools, submit an application to the Secretary at retary may award grants, on a competitive or local educational agencies, that serve such time, in such manner, and accompanied basis, to professional development partner- high percentages of children from families by such information as the Secretary may ships to enable the partnerships to pay the below the poverty line. require. Each such application shall— Federal share of the cost of providing teach- ‘‘SEC. 506. AUTHORIZED ACTIVITIES. ‘‘(1) describe the composition of the part- er preparation, induction, classroom experi- ‘‘(a) IN GENERAL.—Each professional devel- nership; ence, and professional development opportu- opment partnership receiving a grant under ‘‘(2) describe how the partnership will in- nities to prospective, beginning, and veteran this part shall use the grant funds for— clude the participation of the schools, col- teachers while improving the education of ‘‘(1) creating, restructuring, or supporting leges, or departments of arts and sciences students in the classroom. professional development schools; within the institution of higher education to ‘‘(b) DURATION; PLANNING.—The Secretary ‘‘(2) enhancing and restructuring the ensure the integration of pedagogy and con- shall award grants under this part for a pe- teacher preparation program at the school, tent in teacher preparation; riod of 5 years, the first year of which may college, or department of education within ‘‘(3) identify how the goals described in be used for planning to conduct the activi- the institution of higher education, includ- section 503 will be met and the criteria that ties described in section 506. ing— will be used to evaluate and measure wheth- ‘‘(c) PAYMENTS; FEDERAL SHARE; NON-FED- ‘‘(A) coordinating with, and obtaining the er the partnership is meeting the goals; ERAL SHARE.— participation of, schools, colleges, or depart- ‘‘(4) describe how the partnership will re- ‘‘(1) PAYMENTS.—The Secretary shall make ments of arts and science; structure and improve teaching, teacher annual payments pursuant to a grant award- ‘‘(B) preparing teachers to work with di- preparation, and development programs at ed under this part. verse student populations; and the institution of higher education and the ‘‘(2) FEDERAL SHARE.—The Federal share of ‘‘(C) preparing teachers to implement re- professional development school, and how the costs described in subsection (a)(1) shall search-based, demonstrably successful, and such systemic changes will contribute to in- be 80 percent. replicable, instructional programs and prac- creased student achievement; ‘‘(3) NON-FEDERAL SHARE.—The non-Federal tices that increase student achievement; ‘‘(5) describe how the partnership will pre- share of the costs described in subsection ‘‘(3) incorporating clinical learning in the pare teachers to implement research-based, (a)(1) may be in cash or in-kind, fairly evalu- coursework for prospective teachers, and in demonstrably successful, and replicable, in- ated. the induction activities for beginning teach- structional programs and practices that in- ‘‘(d) CONTINUING ELIGIBILITY.— ers; crease student achievement; ‘‘(1) 2ND AND 3D YEARS.—The Secretary may ‘‘(4) mentoring of prospective and begin- ‘‘(6) describe how the teacher preparation make a grant payment under this section for ning teachers by veteran teachers in instruc- program in the institution of higher edu- each of the 2 fiscal years after the first fiscal tional skills, classroom management skills, cation, and the induction activities and on- year a professional development partnership and strategies to effectively assess student going professional development opportuni- receives such a payment, only if the Sec- progress and achievement; ties in the professional development school, retary determines that the partnership, ‘‘(5) providing high quality professional de- incorporate— through the activities assisted under this velopment to veteran teachers, including the ‘‘(A) an understanding of core concepts, part, has made reasonable progress toward rotation, for varying periods of time, of vet- structure, and tools of inquiry as a founda- meeting the criteria described in paragraph eran teachers— tion for subject matter pedagogy; and (3). ‘‘(A) who are associated with the partner- ‘‘(B) knowledge of curriculum and assess- ‘‘(2) 4TH AND 5TH YEARS.—The Secretary ship to elementary schools or secondary ment design as a basis for analyzing and re- may make a grant payment under this sec- schools not associated with the partnership sponding to student learning; tion for each of the 2 fiscal years after the in order to enable such veteran teachers to ‘‘(7) describe how the partnership will pre- third fiscal year a professional development act as a resource for all teachers in the local pare teachers to work with diverse student partnership receives such a payment, only if educational agency or State; and populations, including minority individuals the Secretary determines that the partner- ‘‘(B) who are not associated with the part- and individuals with disabilities; ship, through the activities assisted under nership to elementary schools or secondary ‘‘(8) describe how the partnership will pre- this part, has met the criteria described in schools associated with the partnership in pare teachers to use technology to teach stu- paragraph (3). order to enable such veteran teachers to ob- dents to high academic standards; ‘‘(3) CRITERIA.—The criteria referred to in serve how teaching and professional develop- ‘‘(9) describe how the research and knowl- paragraphs (1) and (2) are as follows: ment occurs in professional development edge generated by the partnership will be ‘‘(A) Increased student achievement as de- schools; disseminated to and implemented in— termined by increased graduation rates, de- ‘‘(6) preparation time for teachers in the ‘‘(A) elementary schools or secondary creased dropout rates, or higher scores on professional development school and faculty schools served by the local educational agen- local, State, or national assessments for a of the institution of higher education to cy or located in the State; and year compared to student achievement as de- jointly design and implement the teacher ‘‘(B) institutions of higher education in the termined by the rates or scores, as the case preparation curriculum, classroom experi- State; may be, for the year prior to the year for ences, and ongoing professional development ‘‘(10)(A) describe how the partnership will which a grant under this part is received. opportunities; coordinate the activities assisted under this ‘‘(B) Improved teacher preparation and de- ‘‘(7) preparing teachers to use technology part with other professional development ac- velopment programs, and student edu- to teach students to high academic stand- tivities for teachers, including activities as- cational programs. ards; sisted under titles I and II of the Elementary ‘‘(C) Increased opportunities for enhanced ‘‘(8) developing and instituting ongoing and Secondary Education Act of 1965 (20 and ongoing professional development of performance-based review procedures to as- U.S.C. 6301 et seq., 6601 et seq.), the Goals teachers. sist and support teachers’ learning; 2000: Educate America Act (20 U.S.C. 5801 et S2312 CONGRESSIONAL RECORD — SENATE March 19, 1998 seq.), the Individuals with Disabilities Edu- ‘‘(1) the extent to which professional devel- TITLE II—ELECTRONIC FILING cation Act (20 U.S.C. 1400 et seq.), and the opment partnerships enhance student Sec. 201. Electronic filing of tax and infor- Carl D. Perkins Vocational and Applied achievement; mation returns. Technology Education Act (20 U.S.C. 2301 et ‘‘(2) how, and the extent to which, profes- Sec. 202. Due date for certain information seq.); and sional development partnerships lead to im- returns filed electronically. ‘‘(B) describe how the activities assisted provements in the quality of teachers; Sec. 203. Paperless electronic filing. under this part are consistent with Federal ‘‘(3) the extent to which professional devel- Sec. 204. Return-free tax system. and State educational reform activities that opment partnerships improve recruitment Sec. 205. Access to account information. promote student achievement of higher aca- and retention rates among beginning teach- TITLE III—TAXPAYER PROTECTION AND demic standards; ers, including beginning minority teachers; RIGHTS ‘‘(11) describe which member of the part- and nership will act as the fiscal agent for the ‘‘(4) the extent to which professional devel- Sec. 300. Short title. partnership and be responsible for the re- opment partnerships lead to the assignment Subtitle A—Burden of Proof ceipt and disbursement of grant funds under of beginning teachers to public elementary Sec. 301. Burden of proof. this part; or secondary schools that have a shortage of Subtitle B—Proceedings by Taxpayers ‘‘(12) describe how the grant funds will be teachers who teach the subject matter in divided among the institution of higher edu- which the teacher received a degree or spe- Sec. 311. Expansion of authority to award cation, the elementary school or secondary cialized training. costs and certain fees. Sec. 312. Civil damages for negligence in col- school, the local educational agency, and ‘‘(c) DISSEMINATION OF INFORMATION.—The any other members of the partnership to Secretary shall disseminate information (in- lection actions. support activities described in section 506; cluding creating and maintaining a national Sec. 313. Increase in size of cases permitted ‘‘(13) provide a description of the commit- database) regarding outstanding professional on small case calendar. ment of the resources of the partnership to development schools, practices, and pro- Subtitle C—Relief for Innocent Spouses and the activities assisted under this part, in- grams. for Taxpayers Unable To Manage Their Fi- cluding financial support, faculty participa- ‘‘SEC. 510. SUPPLEMENT NOT SUPPLANT. nancial Affairs Due to Disabilities tion, and time commitments; and ‘‘Funds appropriated under section 511 Sec. 321. Spouse relieved in whole or in part ‘‘(14) describe the commitment of the part- shall be used to supplement and not supplant of liability in certain cases. nership to continue the activities assisted other Federal, State, and local public funds Sec. 322. Suspension of statute of limita- under this part without grant funds provided expended for the professional development of tions on filing refund claims under this part. elementary school and secondary school during periods of disability. ‘‘SEC. 508. ASSURANCES. teachers. Subtitle D—Provisions Relating to Interest ‘‘Each application submitted under this ‘‘SEC. 511. AUTHORIZATION OF APPROPRIATIONS. part shall contain an assurance that the pro- Sec. 331. Elimination of interest rate dif- fessional development partnership— ‘‘There is authorized to be appropriated to ferential on overlapping periods ‘‘(1) will enter into an agreement that com- carry out this part $100,000,000 for fiscal year of interest on income tax over- mits the members of the partnership to the 1999, and such sums as may be necessary for payments and underpayments. support of students’ learning, the prepara- each of the fiscal years 2000 through 2003.’’. Sec. 332. Increase in overpayment rate pay- tion of prospective and beginning teachers, (b) REPEALS.—Part B of title V of the High- able to taxpayers other than the continuing professional development of er Education Act of 1965 (20 U.S.C. 1103 et corporations. veteran teachers, the periodic review of seq.), subparts 1 and 3 of part C of such title Subtitle E—Protections for Taxpayers teachers, standards-based teaching and (20 U.S.C. 1104 et seq., 1106 et seq.), subparts Subject to Audit or Collection Activities 3 and 4 of part D of such title (20 U.S.C. 1109 learning, practice-based inquiry, and col- Sec. 341. Privilege of confidentiality ex- laboration among members of the partner- et seq., 1110 et seq.), subpart 1 of part E of such title (20 U.S.C. 1111 et seq.), and part F tended to taxpayer’s dealings ship; with non-attorneys authorized ‘‘(2) will use teachers of excellence, who of such title (20 U.S.C. 1113 et seq.), are re- pealed. to practice before Internal Rev- have mastered teaching techniques and sub- enue Service. ject areas, including teachers certified by Sec. 342. Expansion of authority to issue the National Board for Professional Teach- KERREY AMENDMENT NO. 2029 taxpayer assistance orders. ing Standards, to assist prospective and be- (Ordered to lie on the table.) Sec. 343. Limitation on financial status ginning teachers; Mr. KERREY submitted an amend- audit techniques. ‘‘(3) will provide for adequate preparation ment intended to be proposed by him Sec. 344. Limitation on authority to require time to be made available to teachers in the production of computer source professional development school and faculty to the bill, H.R. 2646, supra; as follows: code. at the institution of higher education to Strike all after the enacting clause and in- Sec. 345. Procedures relating to extensions allow the teachers and faculty time to joint- sert the following: of statute of limitations by ly develop programs and curricula for pro- SECTION 1. SHORT TITLE; AMENDMENT OF 1986 agreement. spective and beginning teachers, ongoing CODE; TABLE OF CONTENTS. Sec. 346. Offers-in-compromise. professional development opportunities, and (a) SHORT TITLE.—This Act may be cited as Sec. 347. Notice of deficiency to specify the other authorized activities described in the ‘‘Internal Revenue Service Restructuring deadlines for filing Tax Court section 506; and and Reform Act of 1997’’. petition. ‘‘(4) will develop organizational structures (b) AMENDMENT OF 1986 CODE.—Except as Sec. 348. Refund or credit of overpayments that allow principals and key administrators otherwise expressly provided, whenever in before final determination. to devote sufficient time to adequately par- this Act an amendment or repeal is ex- Sec. 349. Threat of audit prohibited to co- ticipate in the professional development of pressed in terms of an amendment to, or re- erce Tip Reporting Alternative their staffs, including frequent observation peal of, a section or other provision, the ref- Commitment Agreements. and critique of classroom instruction. erence shall be considered to be made to a Subtitle F—Disclosures to Taxpayers ‘‘SEC. 509. NATIONAL ACTIVITIES. section or other provision of the Internal Sec. 351. Explanation of joint and several li- ‘‘(a) IN GENERAL.—The Secretary shall re- Revenue Code of 1986. ability. serve a total of not more than 10 percent of (c) TABLE OF CONTENTS.— the amount appropriated under section 511 Sec. 352. Explanation of taxpayers’ rights in Sec. 1. Short title; amendment of 1986 Code; interviews with the Internal for each fiscal year for evaluation activities table of contents. under subsection (b), and the dissemination Revenue Service. of information under subsection (c). TITLE I—EXECUTIVE BRANCH GOVERN- Sec. 353. Disclosure of criteria for examina- ‘‘(b) NATIONAL EVALUATION.—The Sec- ANCE AND SENIOR MANAGEMENT OF tion selection. retary, by grant or contract, shall provide THE INTERNAL REVENUE SERVICE Sec. 354. Explanations of appeals and collec- for an annual, independent, national evalua- Subtitle A—Executive Branch Governance tion process. tion of the activities of the professional de- and Senior Management Subtitle G—Low Income Taxpayer Clinics velopment partnerships assisted under this Sec. 101. Internal Revenue Service Oversight Sec. 361. Low income taxpayer clinics. part. The evaluation shall be conducted not Board. Subtitle H—Other Matters later than 3 years after the date of enact- Sec. 102. Commissioner of Internal Revenue; Sec. 371. Actions for refund with respect to ment of the Teacher Excellence in America other officials. certain estates which have Challenge Act of 1997 and each succeeding Sec. 103. Other personnel. elected the installment method year thereafter. The Secretary shall report Sec. 104. Prohibition on executive branch in- of payment. to Congress and the public the results of fluence over taxpayer audits such evaluation. The evaluation, at a mini- Sec. 372. Cataloging complaints. and other investigations. mum, shall assess the short-term and long- Sec. 373. Archive of records of Internal Reve- term impacts and outcomes of the activities Subtitle B—Personnel Flexibilities nue Service. assisted under this part, including— Sec. 111. Personnel flexibilities. Sec. 374. Payment of taxes. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2313

Sec. 375. Clarification of authority of Sec- Internal Revenue Service Oversight Board ‘‘(A) IN GENERAL.—Any member of the retary relating to the making (hereafter in this subchapter referred to as Oversight Board may be removed at the will of elections. the ‘Oversight Board’). of the President. Sec. 376. Limitation on penalty on individ- ‘‘(B) SECRETARY AND COMMISSIONER.—An in- ual’s failure to pay for months ‘‘(b) MEMBERSHIP.— dividual described in subparagraph (B) or (C) during period of installment ‘‘(1) COMPOSITION.—The Oversight Board of paragraph (1) shall be removed upon ter- agreement. shall be composed of 11 members, as follows: mination of employment. ‘‘(A) 8 members shall be individuals who Subtitle I—Studies ‘‘(C) REPRESENTATIVE OF INTERNAL REVENUE are not Federal officers or employees and SERVICE EMPLOYEES.—The member described Sec. 381. Penalty administration. who are appointed by the President, by and in paragraph (1)(D) shall be removed upon Sec. 382. Confidentiality of tax return infor- with the advice and consent of the Senate. mation. termination of employment, membership, or ‘‘(B) 1 member shall be the Secretary of other affiliation with the organization de- TITLE IV—CONGRESSIONAL ACCOUNT- the Treasury or, if the Secretary so des- scribed in such paragraph. ABILITY FOR THE INTERNAL REVENUE ignates, the Deputy Secretary of the Treas- ‘‘(5) CLAIMS.— SERVICE ury. ‘‘(A) IN GENERAL.—Members of the Over- Subtitle A—Oversight ‘‘(C) 1 member shall be the Commissioner sight Board who are described in paragraph Sec. 401. Expansion of duties of the Joint of Internal Revenue. (1)(A) or (D) shall have no personal liability Committee on Taxation. ‘‘(D) 1 member shall be an individual who under Federal law with respect to any claim Sec. 402. Coordinated oversight reports. is a representative of an organization that arising out of or resulting from an act or Subtitle B—Budget represents a substantial number of Internal omission by such member within the scope of Revenue Service employees and who is ap- service as a member. The preceding sentence Sec. 411. Funding for century date change. shall not be construed to limit personal li- Sec. 412. Financial Management Advisory pointed by the President, by and with the ad- ability for criminal acts or omissions, willful Group. vice and consent of the Senate. ‘‘(2) QUALIFICATIONS AND TERMS.— or malicious conduct, acts or omissions for Subtitle C—Tax Law Complexity ‘‘(A) QUALIFICATIONS.—Members of the private gain, or any other act or omission Sec. 421. Role of the Internal Revenue Serv- Oversight Board described in paragraph outside the scope of the service of such mem- ice. (1)(A) shall be appointed solely on the basis ber on the Oversight Board. Sec. 422. Tax complexity analysis. of their professional experience and expertise ‘‘(B) EFFECT ON OTHER LAW.—This para- TITLE V—CLARIFICATION OF DEDUC- in 1 or more of the following areas: graph shall not be construed— TION FOR DEFERRED COMPENSATION ‘‘(i) Management of large service organiza- ‘‘(i) to affect any other immunities and Sec. 501. Clarification of deduction for de- tions. protections that may be available to such ferred compensation. ‘‘(ii) Customer service. member under applicable law with respect to such transactions, TITLE VI—CONGRESSIONAL ACCOUNT- ‘‘(iii) Federal tax laws, including tax ad- ministration and compliance. ‘‘(ii) to affect any other right or remedy ABILITY FOR THE INTERNAL REVENUE against the United States under applicable SERVICE ‘‘(iv) Information technology. ‘‘(v) Organization development. law, or Sec. 601. Short title. ‘‘(iii) to limit or alter in any way the im- ‘‘(vi) The needs and concerns of taxpayers. Sec. 602. Definitions. munities that are available under applicable In the aggregate, the members of the Over- Sec. 603. Amendments related to title I of law for Federal officers and employees. sight Board described in paragraph (1)(A) 1997 Act. ‘‘(c) GENERAL RESPONSIBILITIES.— should collectively bring to bear expertise in Sec. 604. Amendments related to title II of ‘‘(1) IN GENERAL.—The Oversight Board 1997 Act. all of the areas described in the preceding shall oversee the Internal Revenue Service Sec. 605. Amendments related to title III of sentence. in its administration, management, conduct, 1997 Act. ‘‘(B) TERMS.—Each member who is de- direction, and supervision of the execution Sec. 606. Amendments related to title V of scribed in paragraph (1)(A) or (D) shall be ap- and application of the internal revenue laws 1997 Act. pointed for a term of 5 years, except that of or related statutes and tax conventions to Sec. 607. Amendments related to title VII of the members first appointed under paragraph which the United States is a party. (1)(A)— 1997 Act. ‘‘(2) EXCEPTIONS.—The Oversight Board Sec. 608. Amendments related to title IX of ‘‘(i) 1 member shall be appointed for a term shall have no responsibilities or authority 1997 Act. of 1 year, with respect to— Sec. 609. Amendments related to title X of ‘‘(ii) 1 member shall be appointed for a ‘‘(A) the development and formulation of 1997 Act. term of 2 years, Federal tax policy relating to existing or Sec. 610. Amendments related to title XI of ‘‘(iii) 2 members shall be appointed for a proposed internal revenue laws, related stat- 1997 Act. term of 3 years, and utes, and tax conventions, Sec. 611. Amendments related to title XII of ‘‘(iv) 2 members shall be appointed for a ‘‘(B) law enforcement activities of the In- 1997 Act. term of 4 years. ternal Revenue Service, including compli- Sec. 612. Amendments related to title XIII of Such terms shall begin on the date of ap- ance activities such as criminal investiga- 1997 Act. pointment. tions, examinations, and collection activi- Sec. 613. Amendments related to title XIV of ‘‘(C) REAPPOINTMENT.—An individual who ties, or 1997 Act. is described in paragraph (1)(A) may be ap- Sec. 614. Amendments related to title XV of ‘‘(C) specific procurement activities of the pointed to no more than two 5-year terms on Internal Revenue Service. 1997 Act. the Oversight Board. Sec. 615. Amendments related to title XVI of ‘‘(3) RESTRICTION ON DISCLOSURE OF RETURN ‘‘(D) VACANCY.—Any vacancy on the Over- 1997 Act. INFORMATION TO OVERSIGHT BOARD MEM- sight Board shall be filled in the same man- Sec. 616. Amendments related to Omibus BERS.—No return, return information, or tax- ner as the original appointment. Any mem- Budget Reconciliation Act of payer return information (as defined in sec- ber appointed to fill a vacancy occurring be- 1993. tion 6103(b)) may be disclosed to any member fore the expiration of the term for which the Sec. 617. Amendments related to Tax Re- of the Oversight Board described in sub- member’s predecessor was appointed shall be form Act of 1984. section (b)(1)(A) or (D). Any request for in- Sec. 618. Amendments related to Tax Re- appointed for the remainder of that term. formation not permitted to be disclosed form Act of 1986. ‘‘(E) SPECIAL GOVERNMENT EMPLOYEES.— under the preceding sentence, and any con- Sec. 619. Miscellaneous clerical and dead- During the entire period that an individual tact relating to a specific taxpayer, made by wood changes. appointed under paragraph (1)(A) is a mem- a member of the Oversight Board so de- Sec. 620. Effective date. ber of the Oversight Board, such individual scribed to an officer or employee of the In- shall be treated as— ternal Revenue Service shall be reported by TITLE I—EXECUTIVE BRANCH GOVERN- ‘‘(i) serving as a special government em- such officer or employee to the Secretary ANCE AND SENIOR MANAGEMENT OF ployee (as defined in section 202 of title 18, and the Joint Committee on Taxation. THE INTERNAL REVENUE SERVICE United States Code) and as described in sec- ‘‘(d) SPECIFIC RESPONSIBILITIES.—The Over- Subtitle A—Executive Branch Governance tion 207(c)(2) of such title 18, and sight Board shall have the following specific and Senior Management ‘‘(ii) serving as an officer or employee re- responsibilities: SEC. 101. INTERNAL REVENUE SERVICE OVER- ferred to in section 101(f) of the Ethics in ‘‘(1) STRATEGIC PLANS.—To review and ap- SIGHT BOARD. Government Act of 1978 for purposes of title prove strategic plans of the Internal Revenue (a) IN GENERAL.—Section 7802 (relating to I of such Act. Service, including the establishment of— the Commissioner of Internal Revenue) is ‘‘(3) QUORUM.—6 members of the Oversight ‘‘(A) mission and objectives, and standards amended to read as follows: Board shall constitute a quorum. A majority of performance relative to either, and ‘‘SEC. 7802. INTERNAL REVENUE SERVICE OVER- of members present and voting shall be re- ‘‘(B) annual and long-range strategic plans. SIGHT BOARD. quired for the Oversight Board to take ac- ‘‘(2) OPERATIONAL PLANS.—To review the ‘‘(a) ESTABLISHMENT.—There is established tion. operational functions of the Internal Reve- within the Department of the Treasury the ‘‘(4) REMOVAL.— nue Service, including— S2314 CONGRESSIONAL RECORD — SENATE March 19, 1998 ‘‘(A) plans for modernization of the tax (B) by striking the period at the end of zations exempt from tax under section 501(a) system, paragraph (6) and inserting ‘‘, or’’, and and with respect to plans to which part I of ‘‘(B) plans for outsourcing or managed (C) by adding at the end the following new subchapter D of chapter 1 applies (and with competition, and paragraph: respect to organizations designed to be ex- ‘‘(C) plans for training and education. ‘‘(7) a member of the Internal Revenue empt under such section and plans designed ‘‘(3) MANAGEMENT.—To— Service Oversight Board.’’. to be plans to which such part applies) and ‘‘(A) recommend to the President can- (2) The table of sections for subchapter A other nonqualified deferred compensation ar- didates for appointment as the Commis- of chapter 80 is amended by striking the item rangements. The Assistant Commissioner sioner of Internal Revenue and recommend relating to section 7802 and inserting the fol- shall report annually to the Commissioner to the President the removal of the Commis- lowing new item: with respect to the Assistant Commis- sioner, ‘‘Sec. 7802. Internal Revenue Service Over- sioner’s responsibilities under this section. ‘‘(B) review the Commissioner’s selection, sight Board.’’. ‘‘(c) OFFICE OF TAXPAYER ADVOCATE.— evaluation, and compensation of senior man- ‘‘(1) IN GENERAL.— agers, and (c) EFFECTIVE DATE.— ‘‘(A) ESTABLISHMENT.—There is established ‘‘(C) review and approve the Commis- (1) IN GENERAL.—The amendments made by this section shall take effect on the date of in the Internal Revenue Service an office to sioner’s plans for any major reorganization be known as the ‘Office of the Taxpayer Ad- of the Internal Revenue Service. the enactment of this Act. OMINATIONS TO INTERNAL REVENUE vocate’. Such office shall be under the super- ‘‘(4) BUDGET.—To— (2) N vision and direction of an official to be ‘‘(A) review and approve the budget request SERVICE OVERSIGHT BOARD.—The President known as the ‘Taxpayer Advocate’ who shall of the Internal Revenue Service prepared by shall submit nominations under section 7802 be appointed with the approval of the Over- the Commissioner, of the Internal Revenue Code of 1986, as sight Board by the Commissioner of Internal ‘‘(B) submit such budget request to the added by this section, to the Senate not later Revenue and shall report directly to the Secretary of the Treasury, and than 6 months after the date of the enact- Commissioner. The Taxpayer Advocate shall ‘‘(C) ensure that the budget request sup- ment of this Act. be entitled to compensation at the same rate ports the annual and long-range strategic SEC. 102. COMMISSIONER OF INTERNAL REVE- plans. NUE; OTHER OFFICIALS. as the highest level official reporting di- (a) IN GENERAL.—Section 7803 (relating to rectly to the Commissioner of Internal Reve- The Secretary shall submit the budget re- other personnel) is amended to read as fol- nue. quest referred to in paragraph (4)(B) for any lows: ‘‘(B) RESTRICTION ON SUBSEQUENT EMPLOY- fiscal year to the President who shall submit MENT.—An individual who is an officer or such request, without revision, to Congress ‘‘SEC. 7803. COMMISSIONER OF INTERNAL REVE- NUE; OTHER OFFICIALS. employee of the Internal Revenue Service together with the President’s annual budget ‘‘(a) COMMISSIONER OF INTERNAL REVE- may be appointed as Taxpayer Advocate only request for the Internal Revenue Service for NUE.— if such individual agrees not to accept any such fiscal year. PPOINTMENT ‘‘(e) BOARD PERSONNEL MATTERS.— ‘‘(1) A .— employment with the Internal Revenue Serv- ‘‘(1) COMPENSATION OF MEMBERS.— ‘‘(A) IN GENERAL.—There shall be in the De- ice for at least 5 years after ceasing to be the ‘‘(A) IN GENERAL.—Each member of the partment of the Treasury a Commissioner of Taxpayer Advocate. Oversight Board who is described in sub- Internal Revenue who shall be appointed by ‘‘(2) FUNCTIONS OF OFFICE.— section (b)(1)(A) shall be compensated at a the President, by and with the advice and ‘‘(A) IN GENERAL.—It shall be the function rate not to exceed $30,000 per year. All other consent of the Senate, to a 5-year term. The of the Office of Taxpayer Advocate to— members of the Oversight Board shall serve appointment shall be made without regard to ‘‘(i) assist taxpayers in resolving problems without compensation for such service. political affiliation or activity. with the Internal Revenue Service, ‘‘(B) CHAIRPERSON.—In lieu of the amount ‘‘(B) VACANCY.—Any individual appointed ‘‘(ii) identify areas in which taxpayers specified in subparagraph (A), the Chair- to fill a vacancy in the position of Commis- have problems in dealings with the Internal person of the Oversight Board shall be com- sioner occurring before the expiration of the Revenue Service, pensated at a rate not to exceed $50,000. term for which such individual’s predecessor ‘‘(iii) to the extent possible, propose ‘‘(2) TRAVEL EXPENSES.—The members of was appointed shall be appointed only for the changes in the administrative practices of the Oversight Board shall be allowed travel remainder of that term. the Internal Revenue Service to mitigate expenses, including per diem in lieu of sub- ‘‘(C) REMOVAL.—The Commissioner may be problems identified under clause (ii), and sistence, at rates authorized for employees of removed at the will of the President. ‘‘(iv) identify potential legislative changes agencies under subchapter I of chapter 57 of ‘‘(2) DUTIES.—The Commissioner shall have which may be appropriate to mitigate such title 5, United States Code, while away from such duties and powers as the Secretary may problems. their homes or regular places of business for prescribe, including the power to— ‘‘(B) ANNUAL REPORTS.— purposes of attending meetings of the Over- ‘‘(A) administer, manage, conduct, direct, ‘‘(i) OBJECTIVES.—Not later than June 30 of sight Board. and supervise the execution and application each calendar year, the Taxpayer Advocate ‘‘(3) STAFF.—At the request of the Chair- of the internal revenue laws or related stat- shall report to the Committee on Ways and person of the Oversight Board, the Commis- utes and ax conventions to which the United Means of the House of Representatives and sioner shall detail to the Oversight Board States is a party; and the Committee on Finance of the Senate on such personnel as may be necessary to en- ‘‘(B) recommend to the President a can- the objectives of the Taxpayer Advocate for able the Oversight Board to perform its du- didate for appointment as Chief Counsel for the fiscal year beginning in such calendar ties. Such detail shall be without interrup- the Internal Revenue Service when a va- year. Any such report shall contain full and tion or loss of civil service status or privi- cancy occurs, and recommend to the Presi- substantive analysis, in addition to statis- lege. dent the removal of such Chief Counsel. tical information. ‘‘(4) PROCUREMENT OF TEMPORARY AND If the Secretary determines not to delegate a ‘‘(ii) ACTIVITIES.—Not later than December INTERMITTENT SERVICES.—The Chairperson of power specified in subparagraph (A) or (B), 31 of each calendar year, the Taxpayer Advo- the Oversight Board may procure temporary such determination may not take effect cate shall report to the Committee on Ways and intermittent services under section until 30 days after the Secretary notifies the and Means of the House of Representatives 3109(b) of title 5, United States Code. Committees on Ways and Means, Govern- and the Committee on Finance of the Senate ‘‘(f) ADMINISTRATIVE MATTERS.— ment Reform and Oversight, and Appropria- on the activities of the Taxpayer Advocate ‘‘(1) CHAIR.—The members of the Oversight tions of the House of Representatives, the during the fiscal year ending during such Board shall elect for a 2-year term a chair- Committees on Finance, Government Oper- calendar year. Any such report shall contain person from among the members appointed ations, and Appropriations of the Senate, full and substantive analysis, in addition to under subsection (b)(1)(A). and the Joint Committee on Taxation. statistical information, and shall— ‘‘(2) COMMITTEES.—The Oversight Board ‘‘(3) CONSULTATION WITH BOARD.—The Com- ‘‘(I) identify the initiatives the Taxpayer may establish such committees as the Over- missioner shall consult with the Oversight Advocate has taken on improving taxpayer sight Board determines appropriate. Board on all matters set forth in paragraphs services and Internal Revenue Service re- ‘‘(3) MEETINGS.—The Oversight Board shall (2) and (3) (other than paragraph (3)(A)) of sponsiveness, meet at least once each month and at such section 7802(d). ‘‘(II) contain recommendations received other times as the Oversight Board deter- ‘‘(b) ASSISTANT COMMISSIONER FOR EM- from individuals with the authority to issue mines appropriate. PLOYEE PLANS AND EXEMPT ORGANIZATIONS.— Taxpayer Assistance Orders under section ‘‘(4) REPORTS.—The Oversight Board shall There is established within the Internal Rev- 7811, each year report to the President and the enue Service an office to be known as the ‘‘(III) contain a summary of at least 20 of Congress with respect to the conduct of its ‘Office of Employee Plans and Exempt Orga- the most serious problems encountered by responsibilities under this title.’’. nizations’ to be under the supervision and di- taxpayers, including a description of the na- (b) CONFORMING AMENDMENTS.— rection of an Assistant Commissioner of In- ture of such problems, (1) Section 4946(c) (relating to definitions ternal Revenue. As head of the Office, the ‘‘(IV) contain an inventory of the items de- and special rules for chapter 42) is amended— Assistant Commissioner shall be responsible scribed in subclauses (I), (II), and (III) for (A) by striking ‘‘or’’ at the end of para- for carrying out such functions as the Sec- which action has been taken and the result graph (5), retary may prescribe with respect to organi- of such action, March 19, 1998 CONGRESSIONAL RECORD — SENATE S2315 ‘‘(V) contain an inventory of the items de- SEC. 103. OTHER PERSONNEL. ‘‘(1) any request made to an applicable per- scribed in subclauses (I), (II), and (III) for (a) IN GENERAL.—Section 7804 (relating to son by the taxpayer or a representative of which action remains to be completed and the effect of reorganization plans) is amend- the taxpayer and forwarded by such applica- the period during which each item has re- ed to read as follows: ble person to the Internal Revenue Service, mained on such inventory, ‘‘SEC. 7804. OTHER PERSONNEL. ‘‘(2) any request by an applicable person ‘‘(VI) contain an inventory of the items de- ‘‘(a) APPOINTMENT AND SUPERVISION.—Un- for disclosure of return or return informa- scribed in subclauses (I), (II), and (III) for less otherwise prescribed by the Secretary, tion under section 6103 if such request is which no action has been taken, the period the Commissioner of Internal Revenue is au- made in accordance with the requirements of during which each item has remained on thorized to employ such number of persons such section, or such inventory, the reasons for the inaction, as the Commissioner deems proper for the ‘‘(3) any request by the Secretary of the and identify any Internal Revenue Service administration and enforcement of the inter- Treasury as a consequence of the implemen- official who is responsible for such inaction, nal revenue laws, and the Commissioner tation of a change in tax policy. ‘‘(VII) identify any Taxpayer Assistance shall issue all necessary directions, instruc- ‘‘(d) PENALTY.—Any person who willfully violates subsection (a) or fails to report Order which was not honored by the Internal tions, orders, and rules applicable to such under subsection (b) shall be punished upon Revenue Service in a timely manner, as persons. conviction by a fine in any amount not ex- specified under section 7811(b), ‘‘(b) POSTS OF DUTY OF EMPLOYEES IN FIELD SERVICE OR TRAVELING.—Unless otherwise ceeding $5,000, or imprisonment of not more ‘‘(VIII) contain recommendations for such than 5 years, or both, together with the costs administrative and legislative action as may prescribed by the Secretary— ‘‘(1) DESIGNATION OF POST OF DUTY.—The of prosecution. be appropriate to resolve problems encoun- ‘‘(e) APPLICABLE PERSON.—For purposes of tered by taxpayers, Commissioner shall determine and designate the posts of duty of all such persons engaged this section, the term ‘applicable person’ ‘‘(IX) identify areas of the tax law that im- means— in field work or traveling on official business pose significant compliance burdens on tax- ‘‘(1) the President, the Vice President, any outside of the District of Columbia. payers or the Internal Revenue Service, in- employee of the executive office of the Presi- ‘‘(2) DETAIL OF PERSONNEL FROM FIELD cluding specific recommendations for rem- dent, and any employee of the executive of- SERVICE.—The Commissioner may order any edying these problems, fice of the Vice President, and such person engaged in field work to duty in ‘‘(2) any individual (other than the Attor- ‘‘(X) in conjunction with the National Di- the District of Columbia, for such periods as ney General of the United States) serving in rector of Appeals, identify the 10 most liti- the Commissioner may prescribe, and to any a position specified in section 5312 of title 5, gated issues for each category of taxpayers, designated post of duty outside the District United States Code.’’. including recommendations for mitigating of Columbia upon the completion of such such disputes, and (b) CLERICAL AMENDMENT.—The table of duty. sections for part I of subchapter A of chapter ‘‘(XI) include such other information as ‘‘(c) DELINQUENT INTERNAL REVENUE OFFI- the Taxpayer Advocate may deem advisable. 75 is amended by adding after the item relat- CERS AND EMPLOYEES.—If any officer or em- ing to section 7216 the following new item: ‘‘(iii) REPORT TO BE SUBMITTED DIRECTLY.— ployee of the Treasury Department acting in Each report required under this subpara- connection with the internal revenue laws ‘‘Sec. 7217. Prohibition on executive branch graph shall be provided directly to the com- fails to account for and pay over any amount influence over taxpayer audits mittees described in clauses (i) and (ii) with- of money or property collected or received and other investigations.’’. out any prior review or comment from the by him in connection with the internal reve- (c) EFFECTIVE DATE.—The amendments Oversight Board, the Secretary of the Treas- nue laws, the Secretary shall issue notice made by this section shall apply to requests ury, any other officer or employee of the De- and demand to such officer or employee for made after the date of the enactment of this partment of the Treasury, or the Office of payment of the amount which he failed to Act. Management and Budget. account for and pay over, and, upon failure Subtitle B—Personnel Flexibilities ‘‘(C) OTHER RESPONSIBILITIES.—The Tax- to pay the amount demanded within the SEC. 111. PERSONNEL FLEXIBILITIES. payer Advocate shall— time specified in such notice, the amount so (a) IN GENERAL.—Part III of title 5, United ‘‘(i) monitor the coverage and geographic demanded shall be deemed imposed upon States Code, is amended by adding at the end allocation of problem resolution officers, and such officer or employee and assessed upon the following new subpart: ‘‘(ii) develop guidance to be distributed to the date of such notice and demand, and the ‘‘Subpart I—Miscellaneous all Internal Revenue Service officers and em- provisions of chapter 64 and all other provi- ‘‘CHAPTER 93—PERSONNEL FLEXIBILI- ployees outlining the criteria for referral of sions of law relating to the collection of as- TIES RELATING TO THE INTERNAL REV- taxpayer inquiries to problem resolution of- sessed taxes shall be applicable in respect of ENUE SERVICE ficers. such amount.’’. ‘‘Sec. (b) CONFORMING AMENDMENTS.— ‘‘(3) RESPONSIBILITIES OF COMMISSIONER.— ‘‘9301. General requirements. The Commissioner shall establish procedures (1) Subsection (b) of section 6344 is amend- ‘‘9302. Flexibilities relating to performance requiring a formal response to all rec- ed by striking ‘‘section 7803(d)’’ and inserting management. ommendations submitted to the Commis- ‘‘section 7804(c)’’. ‘‘9303. Staffing flexibilities. sioner by the Taxpayer Advocate within 3 (2) The table of sections for subchapter A ‘‘9304. Flexibilities relating to demonstration months after submission to the Commis- of chapter 80 is amended by striking the item projects. sioner.’’. relating to section 7804 and inserting the fol- ‘‘§ 9301. General requirements lowing new item: (b) CONFORMING AMENDMENTS.— ‘‘(a) CONFORMANCE WITH MERIT SYSTEM (1) The table of sections for subchapter A ‘‘Sec. 7804. Other personnel.’’. PRINCIPLES, ETC.—Any flexibilities under of chapter 80 is amended by striking the item (c) EFFECTIVE DATE.—The amendments this chapter shall be exercised in a manner relating to section 7803 and inserting the fol- made by this section shall take effect on the consistent with— lowing new item: date of the enactment of this Act. ‘‘(1) chapter 23, relating to merit system SEC. 104. PROHIBITION ON EXECUTIVE BRANCH principles and prohibited personnel prac- ‘‘Sec. 7803. Commissioner of Internal Reve- INFLUENCE OVER TAXPAYER AU- tices; and nue; other officials.’’. DITS AND OTHER INVESTIGATIONS. ‘‘(2) provisions of this title (outside of this (2) Subsection (b) of section 5109 of title 5, (a) IN GENERAL.—Part I of subchapter A of subpart) relating to preference eligibles. United States Code, is amended by striking chapter 75 (relating to crimes, other offenses, ‘‘(b) REQUIREMENT RELATING TO UNITS REP- ‘‘7802(b)’’ and inserting ‘‘7803(b)’’. and forfeitures) is amended by adding after RESENTED BY LABOR ORGANIZATIONS.— section 7216 the following new section: ‘‘(1) WRITTEN AGREEMENT REQUIRED.—Em- (c) EFFECTIVE DATE.— ‘‘SEC. 7217. PROHIBITION ON EXECUTIVE BRANCH ployees within a unit with respect to which (1) IN GENERAL.—The amendments made by INFLUENCE OVER TAXPAYER AU- a labor organization is accorded exclusive this section shall take effect on the date of DITS AND OTHER INVESTIGATIONS. recognition under chapter 71 shall not be the enactment of this Act. ‘‘(a) PROHIBITION.—It shall be unlawful for subject to the exercise of any flexibility (2) CURRENT OFFICERS.— any applicable person to request any officer under section 9302, 9303, or 9304, unless there (A) In the case of an individual serving as or employee of the Internal Revenue Service is a written agreement between the Internal Commissioner of Internal Revenue on the to conduct or terminate an audit or other in- Revenue Service and the organization per- date of the enactment of this Act who was vestigation of any particular taxpayer with mitting such exercise. appointed to such position before such date, respect to the tax liability of such taxpayer. ‘‘(2) DEFINITION OF A WRITTEN AGREEMENT.— the 5-year term required by section 7803(a)(1) ‘‘(b) REPORTING REQUIREMENT.—Any officer In order to satisfy paragraph (1), a written of the Internal Revenue Code of 1986, as or employee of the Internal Revenue Service agreement— added by this section, shall begin as of the receiving any request prohibited by sub- ‘‘(A) need not be a collective bargaining date of such appointment. section (a) shall report the receipt of such re- agreement within the meaning of section (B) Section 7803(c)(1)(B) of such Code, as quest to the Chief Inspector of the Internal 7103(8); and added by this section, shall not apply to the Revenue Service. ‘‘(B) may not be an agreement imposed by individual serving as Taxpayer Advocate on ‘‘(c) EXCEPTIONS.—Subsection (a) shall not the Federal Service Impasses Panel under the date of the enactment of this Act. apply to— section 7119. S2316 CONGRESSIONAL RECORD — SENATE March 19, 1998

‘‘(3) INCLUDIBLE MATTERS.—The written reports directly to the Commissioner of In- ‘‘(ii) not being an employee of that agency. agreement may address any flexibilities ternal Revenue, a cash award in an amount ‘‘(B) DESCRIPTION.—An individual shall, for under section 9302, 9303, or 9304, including up to 50 percent of such employee’s annual purposes of a position for which such individ- any matter proposed to be included in a dem- rate of basic pay may be made if the Com- ual is applying, be considered a veteran de- onstration project under section 9304. missioner finds such an award to be war- scribed in this subparagraph if such individ- ‘‘§ 9302. Flexibilities relating to performance ranted based on such employee’s perform- ual— management ance. ‘‘(i) is either a preference eligible, or an in- ‘‘(a) IN GENERAL.—The Commissioner of In- ‘‘(B) NATURE OF AN AWARD.—A cash award dividual (other than a preference eligible) ternal Revenue shall, within a year after the under this paragraph shall not be considered who has been separated from the armed date of the enactment of this chapter, estab- to be part of basic pay. forces under honorable conditions after at lish a performance management system ‘‘(C) TAX ENFORCEMENT RESULTS.—A cash least 3 years of active service; and which— award under this paragraph may not be ‘‘(ii) meets the minimum qualification re- ‘‘(1) subject to section 9301(b), shall cover based solely on tax enforcement results. quirements for the position sought. all employees of the Internal Revenue Serv- ‘‘(D) ELIGIBLE EMPLOYEES.—Whether or not ‘‘(2) ELIGIBILITY OF CERTAIN TEMPORARY EM- ice other than— an employee is an employee who reports di- PLOYEES.— ‘‘(A) the members of the Internal Revenue rectly to the Commissioner of Internal Reve- ‘‘(A) IN GENERAL.—No temporary employee Service Oversight Board; nue shall, for purposes of this paragraph, be described in subparagraph (B) shall be denied ‘‘(B) the Commissioner of Internal Reve- determined under regulations which the the opportunity to compete for an an- nue; and Commissioner shall prescribe, except that in nounced vacant competitive service position ‘‘(C) the Chief Counsel for the Internal no event shall more than 8 employees be eli- within the Internal Revenue Service by rea- Revenue Service; gible for a cash award under this paragraph son of not having acquired competitive sta- ‘‘(2) shall maintain individual accountabil- in any calendar year. tus. ity by— ‘‘(E) LIMITATION ON COMPENSATION.—For ‘‘(B) DESCRIPTION.—An individual shall, for ‘‘(A) establishing standards of performance purposes of applying section 5307 to an em- purposes of a position for which such individ- which— ployee in connection with any calendar year ual is applying, be considered a temporary ‘‘(i) shall permit the accurate evaluation of to which an award made under this para- employee described in this subparagraph if— each employee’s performance on the basis of graph to such employee is attributable, sub- ‘‘(i) such individual is then currently serv- the individual and organizational perform- section (a)(1) of such section shall be applied ing as a temporary employee in the Internal ance requirements applicable with respect to by substituting ‘to equal or exceed the an- Revenue Service; the evaluation period involved, taking into nual rate of compensation for the Vice Presi- ‘‘(ii) such individual has completed at least account individual contributions toward the dent for such calendar year’ for ‘to exceed 2 years of current continuous service in the attainment of any goals or objectives under the annual rate of basic pay payable for level competitive service under 1 or more term ap- paragraph (3); I of the Executive Schedule, as of the end of pointments, each of which was made under ‘‘(ii) shall be communicated to an em- such calendar year’. competitive procedures prescribed for perma- nent appointments; ployee before the start of any period with re- ‘‘(F) APPROVAL REQUIRED.—An award under spect to which the performance of such em- this paragraph may not be made unless— ‘‘(iii) such individual’s performance under each term appointment referred to in clause ployee is to be evaluated using such stand- ‘‘(i) the Commissioner of Internal Revenue (ii) met all applicable retention standards; ards; and certifies to the Office of Personnel Manage- and ‘‘(iii) shall include at least 2 standards of ment that such award is warranted; and ‘‘(iv) such individual meets the minimum performance, the lowest of which shall de- ‘‘(ii) the Office approves, or does not dis- qualification requirements for the position note the retention standard and shall be approve, the proposed award within 60 days sought. equivalent to fully successful performance; after the date on which it is so certified. ‘‘(b) RATING SYSTEMS.— ‘‘(B) providing for periodic performance ‘‘(3) BASED ON SAVINGS.— ‘‘(1) IN GENERAL.—Notwithstanding sub- evaluations to determine whether employees ‘‘(A) IN GENERAL.—The Commissioner of In- are meeting all applicable retention stand- chapter I of chapter 33, the Commissioner of ternal Revenue may authorize the payment Internal Revenue may establish category ards; and of cash awards to employees based on docu- ‘‘(C) using the results of such employee’s rating systems for evaluating job applicants mented financial savings achieved by a for positions in the competitive service, performance evaluation as a basis for adjust- group or organization which such employees ments in pay and other appropriate person- under which qualified candidates are divided comprise, if such payments are made pursu- into 2 or more quality categories on the nel actions; and ant to a plan which— ‘‘(3) shall provide for (A) establishing goals basis of relative degrees of merit, rather ‘‘(i) specifies minimum levels of service than assigned individual numerical ratings. or objectives for individual, group, or organi- and quality to be maintained while achiev- zational performance (or any combination Each applicant who meets the minimum ing such financial savings; and qualification requirements for the position thereof), consistent with Internal Revenue ‘‘(ii) is in conformance with criteria pre- Service performance planning procedures, in- to be filled shall be assigned to an appro- scribed by the Office of Personnel Manage- priate category based on an evaluation of the cluding those established under the Govern- ment. ment Performance and Results Act of 1993, applicant’s knowledge, skills, and abilities ‘‘(B) FUNDING.—A cash award under this relative to those needed for successful per- the Information Technology Management paragraph may be paid from the fund or ap- Reform Act of 1996, Revenue Procedure 64–22 formance in the job to be filled. propriation available to the activity pri- (as in effect on July 30, 1997), and taxpayer ‘‘(2) TREATMENT OF PREFERENCE ELIGI- marily benefiting or the various activities service surveys, (B) communicating such BLES.—Within each quality category estab- benefiting. goals or objectives to employees, and (C) lished under paragraph (1), preference eligi- ‘‘(C) TAX ENFORCEMENT RESULTS.—A cash using such goals or objectives to make per- bles shall be listed ahead of individuals who award under this paragraph may not be formance distinctions among employees or are not preference eligibles. For other than based solely on tax enforcement results. groups of employees. scientific and professional positions at or ‘‘(c) OTHER PROVISIONS.— For purposes of this title, performance of an higher than GS–9 (or equivalent), preference ‘‘(1) NOTICE PROVISIONS.—In applying sec- eligibles who have a compensable service- employee during any period in which such tions 4303(b)(1)(A) and 7513(b)(1) to employees employee is subject to standards of perform- connected disability of 10 percent or more, of the Internal Revenue Service, ‘15 days’ and who meet the minimum qualification ance under paragraph (2) shall be considered shall be substituted for ‘30 days’. to be ‘unacceptable’ if the performance of standards, shall be listed in the highest qual- ‘‘(2) APPEALS.—Notwithstanding the sec- such employee during such period fails to ity category. ond sentence of section 5335(c), an employee ‘‘(3) SELECTION PROCESS.—An appointing meet any retention standard. of the Internal Revenue Service shall not ‘‘(b) AWARDS.— authority may select any applicant from the have a right to appeal the denial of a peri- ‘‘(1) FOR SUPERIOR ACCOMPLISHMENTS.—In highest quality category or, if fewer than 3 the case of a proposed award based on the ef- odic step increase under section 5335 to the candidates have been assigned to the highest forts of an employee or former employee of Merit Systems Protection Board. quality category, from a merged category the Internal Revenue Service, any approval ‘‘§ 9303. Staffing flexibilities consisting of the highest and second highest required under the provisions of section ‘‘(a) ELIGIBILITY TO COMPETE FOR A PERMA- quality categories. Notwithstanding the pre- 4502(b) shall be considered to have been NENT APPOINTMENT IN THE COMPETITIVE SERV- ceding sentence, the appointing authority granted if the Office of Personnel Manage- ICE.— may not pass over a preference eligible in ment does not disapprove the proposed award ‘‘(1) ELIGIBILITY OF QUALIFIED VETERANS.— the same or a higher category from which se- within 60 days after receiving the appro- ‘‘(A) IN GENERAL.—No veteran described in lection is made, unless the requirements of priate certification described in such provi- subparagraph (B) shall be denied the oppor- section 3317(b) or 3318(b), as applicable, are sions. tunity to compete for an announced vacant satisfied, except that in no event may cer- ‘‘(2) FOR EMPLOYEES WHO REPORT DIRECTLY competitive service position within the In- tification of a preference eligible under this TO THE COMMISSIONER.— ternal Revenue Service by reason of— subsection be discontinued by the Internal ‘‘(A) IN GENERAL.—In the case of an em- ‘‘(i) not having acquired competitive sta- Revenue Service under section 3317(b) before ployee of the Internal Revenue Service who tus; or the end of the 6-month period beginning on March 19, 1998 CONGRESSIONAL RECORD — SENATE S2317 the date of such employee’s first certifi- ‘‘(3) provide for a waiver of any law or reg- lish a plan to eliminate barriers, provide in- cation. ulation relating to preference eligibles as de- centives, and use competitive market forces ‘‘(c) INVOLUNTARY REASSIGNMENTS AND RE- fined in section 2108 or subchapter II or III of to increase electronic filing gradually over MOVALS OF CAREER APPOINTEES IN THE SENIOR chapter 73 (or any regulations prescribed the next 10 years while maintaining process- EXECUTIVE SERVICE.—Neither section thereunder); ing times for paper returns at 40 days. To the 3395(e)(1) nor section 3592(b)(1) shall apply ‘‘(4) permit collective bargaining over pay extent practicable, such plan shall provide with respect to the Internal Revenue Serv- or benefits, or require collective bargaining that all returns prepared electronically for ice. over any matter which would not be required taxable years beginning after 2001 shall be ‘‘(d) PROBATIONARY PERIODS.—Notwith- under section 7106; or filed electronically. standing any other provision of law or regu- ‘‘(5) include a system for measuring per- (2) ELECTRONIC COMMERCE ADVISORY lation, the Commissioner of Internal Reve- formance that provides for only 1 level of GROUP.—To ensure that the Secretary re- nue may establish a period of probation performance at or above the level of fully ceives input from the private sector in the under section 3321 of up to 3 years for any po- successful or better. development and implementation of the plan sition if, as determined by the Commis- ‘‘(f) PERMISSIBLE PROJECTS.—Notwith- required by paragraph (1), the Secretary sioner, a shorter period would be insufficient standing any other provision of law, a dem- shall convene an electronic commerce advi- for the incumbent to demonstrate complete onstration project under this section— sory group to include representatives from proficiency in such position. ‘‘(1) may establish alternative means of re- the small business community and from the ‘‘(e) PROVISIONS THAT REMAIN APPLICA- solving any dispute within the jurisdiction of tax practitioner, preparer, and computerized BLE.—No provision of this section exempts the Equal Employment Opportunity Com- tax processor communities and other rep- the Internal Revenue Service from— mission, the Merit Systems Protection resentatives from the electronic filing indus- ‘‘(1) any employment priorities established Board, the Federal Labor Relations Author- try. under direction of the President for the ity, or the Federal Service Impasses Panel; (c) PROMOTION OF ELECTRONIC FILING AND placement of surplus or displaced employees; and INCENTIVES.—Section 6011 is amended by re- or ‘‘(2) may permit the Internal Revenue designating subsection (f) as subsection (g) ‘‘(2) its obligations under any court order Service to adopt any alternative dispute res- and by inserting after subsection (e) the fol- or decree relating to the employment prac- olution procedure that a private entity may lowing new subsection: ‘‘(f) PROMOTION OF ELECTRONIC FILING.— tices of the Internal Revenue Service. lawfully adopt. ‘‘(1) IN GENERAL.—The Secretary is author- ‘‘(g) CONSULTATION AND COORDINATION.— ‘‘§ 9304. Flexibilities relating to demonstra- ized to promote the benefits of and encour- tion projects The Commissioner of Internal Revenue shall consult with the Director of the Office of age the use of electronic tax administration ‘‘(a) AUTHORITY TO CONDUCT.—The Com- Personnel Management in the development programs, as they become available, through missioner of Internal Revenue may, in ac- and implementation of each demonstration the use of mass communications and other cordance with this section, conduct 1 or project under this section and shall submit means. more demonstration projects to improve per- such reports to the Director as the Director ‘‘(2) INCENTIVES.—The Secretary may im- sonnel management; provide increased indi- may require. The Director or the Commis- plement procedures to provide for the pay- vidual accountability; eliminate obstacles to sioner of Internal Revenue may terminate a ment of appropriate incentives for electroni- the removal of or imposing any disciplinary demonstration project under this section if cally filed returns.’’. action with respect to poor performers, sub- (d) ANNUAL REPORTS.—Not later than June either of them determines that the project ject to the requirements of due process; expe- 30 of each calendar year after 1997, the Chair- creates a substantial hardship on, or is not dite appeals from adverse actions or per- person of the Internal Revenue Service Over- in the best interests of, the public, the Fed- formance-based actions; and promote pay sight Board, the Secretary, and the Chair- eral Government, employees, or qualified ap- based on performance. person of the electronic commerce advisory plicants for employment with the Internal ‘‘(b) GENERAL REQUIREMENTS.—Except as group established under subsection (b)(2) Revenue Service. provided in subsection (c), each demonstra- shall report to the Committees on Ways and ‘‘(h) TERMINATION.—Each demonstration tion project under this section shall comply Means, Appropriations, and Government Re- project under this section shall terminate with the provisions of section 4703. form and Oversight of the House of Rep- before the end of the 5-year period beginning ‘‘(c) SPECIAL RULES.—For purposes of any resentatives, the Committees on Finance, on the date on which the project takes ef- demonstration project under this section— Appropriations, and Government Affairs of fect, except that any such project may con- ‘‘(1) AUTHORITY OF COMMISSIONER.—The the Senate, and the Joint Committee on tinue beyond the end of such period, for not Commissioner of Internal Revenue shall ex- Taxation, on— to exceed 2 years, if the Commissioner of In- ercise the authority provided to the Office of (1) the progress of the Internal Revenue ternal Revenue, with the concurrence of the Personnel Management under section 4703. Service in meeting the goal of receiving elec- Director, determines such extension is nec- ‘‘(2) PROVISIONS NOT APPLICABLE.—The fol- tronically 80 percent of tax and information essary to validate the results of the project. lowing provisions of section 4703 shall not returns by 2007; Not later than 6 months before the end of the apply: (2) the status of the plan required by sub- 5-year period and any extension under the ‘‘(A) Paragraphs (3) through (6) of sub- section (b); and preceding sentence, the Commissioner of In- section (b). (3) the legislative changes necessary to as- ternal Revenue shall, with respect to the ‘‘(B) Paragraphs (1), (2)(B)(ii), and (4) of sist the Internal Revenue Service in meeting demonstration project involved, submit a subsection (c). such goal. legislative proposal to the Congress if the ‘‘(C) Subsections (d) through (g). SEC. 202. DUE DATE FOR CERTAIN INFORMATION Commissioner determines that such project ‘‘(d) NOTIFICATION REQUIRED TO BE RETURNS FILED ELECTRONICALLY. should be made permanent, in whole or in GIVEN.— (a) IN GENERAL.—Section 6071 (relating to part.’’. ‘‘(1) TO EMPLOYEES.—The Commissioner of time for filing returns and other documents) (b) CLERICAL AMENDMENT.—The analysis Internal Revenue shall notify employees is amended by redesignating subsection (b) for part III of title 5, United States Code, is as subsection (c) and by inserting after sub- likely to be affected by a project proposed amended by adding at the end the following: under this section at least 90 days in advance section (a) the following new subsection: ‘‘(b) ELECTRONICALLY FILED INFORMATION of the date such project is to take effect. ‘‘Subpart I—Miscellaneous ‘‘93. Personnel Flexibilities Re- RETURNS.—Returns made under subparts B ‘‘(2) TO CONGRESS AND OPM.—The Commis- and C of part III of this subchapter which are sioner of Internal Revenue shall, with re- lating to the Internal Revenue Service ...... 9301’’. filed electronically shall be filed on or before spect to each demonstration project under March 31 of the year following the calendar this section, provide each House of Congress (c) EFFECTIVE DATE.—This section shall take effect on the date of enactment of this year to which such returns relate.’’. and the Office of Personnel Management (b) EFFECTIVE DATE.—The amendment Act. with a report, at least 30 days in advance of made by this section shall apply to returns the date such project is to take effect, set- TITLE II—ELECTRONIC FILING required to be filed after December 31, 1999. ting forth the final version of the plan for SEC. 201. ELECTRONIC FILING OF TAX AND IN- SEC. 203. PAPERLESS ELECTRONIC FILING. such project. Such report shall, with respect FORMATION RETURNS. (a) IN GENERAL.—Section 6061 (relating to to the project to which it relates, include the (a) IN GENERAL.—It is the policy of the signing of returns and other documents) is information specified in section 4703(b)(1). Congress that paperless filing should be the amended— ‘‘(e) LIMITATIONS.—No demonstration preferred and most convenient means of fil- (1) by striking ‘‘Except as otherwise pro- project under this section may— ing tax and information returns, and that by vided by’’ and inserting the following: ‘‘(1) provide for a waiver of any regulation the year 2007, no more than 20 percent of all ‘‘(a) GENERAL RULE.—Except as otherwise prescribed under any provision of law re- such returns should be filed on paper. provided by subsection (b) and’’, and ferred to in paragraph (2)(B)(i) or (3) of sec- (b) STRATEGIC PLAN.— (2) by adding at the end the following new tion 4703(c); (1) IN GENERAL.—Not later than 180 days subsection: ‘‘(2) provide for a waiver of subchapter V of after the date of the enactment of this Act, ‘‘(b) ELECTRONIC SIGNATURES.— chapter 63 or subpart G of part III (or any the Secretary of the Treasury or the Sec- ‘‘(1) IN GENERAL.—The Secretary shall de- regulations prescribed under such subchapter retary’s delegate (hereafter in this section velop procedures for the acceptance of signa- or subpart); referred to as the ‘‘Secretary’’) shall estab- tures in digital or other electronic form. S2318 CONGRESSIONAL RECORD — SENATE March 19, 1998 Until such time as such procedures are in (1) what additional resources the Internal ‘‘Such term shall only include costs incurred place, the Secretary may waive the require- Revenue Service would need to implement on or after whichever of the following is the ment of a signature for all returns or classes such a system, earliest: (i) the date of the receipt by the of returns, or may provide for alternative (2) the changes to the Internal Revenue taxpayer of the notice of the decision of the methods of subscribing all returns, declara- Code of 1986 that could enhance the use of Internal Revenue Service Office of Appeals, tions, statements, or other documents re- such a system, (ii) the date of the notice of deficiency, or quired or permitted to be made or written (3) the procedures developed pursuant to (iii) the date on which the 1st letter of pro- under internal revenue laws and regulations. subsection (a), and posed deficiency which allows the taxpayer ‘‘(2) TREATMENT OF ALTERNATIVE METH- (4) the number and classes of taxpayers an opportunity for administrative review in ODS.—Notwithstanding any other provision that would be permitted to use the proce- the Internal Revenue Service Office of Ap- of law, any return, declaration, statement or dures developed pursuant to subsection (a). peals is sent.’’. other document filed without signature SEC. 205. ACCESS TO ACCOUNT INFORMATION. (c) AWARD OF FEES FOR CERTAIN ADDI- TIONAL SERVICES.—Paragraph (3) of section under the authority of this subsection or Not later than December 31, 2006, the Sec- 7430(c) is amended to read as follows: verified, signed or subscribed under any retary of the Treasury or the Secretary’s ‘‘(3) ATTORNEY’S FEES.— method adopted under paragraph (1) shall be delegate shall develop procedures under ‘‘(A) IN GENERAL.—For purposes of para- treated for all purposes (both civil and crimi- which a taxpayer filing returns electroni- graphs (1) and (2), fees for the services of an nal, including penalties for perjury) in the cally would be able to review the taxpayer’s individual (whether or not an attorney) who same manner as though signed and sub- account electronically, but only if all nec- is authorized to practice before the Tax scribed. Any such return, declaration, state- essary safeguards to ensure the privacy of Court or before the Internal Revenue Service ment or other document shall be presumed such account information are in place. to have been actually submitted and sub- shall be treated as fees for the services of an TITLE III—TAXPAYER PROTECTION AND scribed by the person on whose behalf it was attorney. RIGHTS submitted. ‘‘(B) PRO BONO SERVICES.—In any case in which the court could have awarded attor- ‘‘(3) PUBLISHED GUIDANCE.—The Secretary SEC. 300. SHORT TITLE. shall publish guidance as appropriate to de- This title may be cited as the ‘‘Taxpayer ney’s fees under subsection (a) but for the fine and implement any waiver of the signa- Bill of Rights 3’’. fact that an individual is representing the prevailing party for no fee or for a fee which ture requirements.’’. Subtitle A—Burden of Proof (taking into account all the facts and cir- (b) ACKNOWLEDGMENT OF ELECTRONIC FIL- SEC. 301. BURDEN OF PROOF. cumstances) is no more than a nominal fee, ING.—Section 7502(c) is amended to read as (a) IN GENERAL.—Chapter 76 (relating to ju- the court may also award a judgment or set- follows: dicial proceedings) is amended by adding at tlement for such amounts as the court deter- ‘‘(c) REGISTERED AND CERTIFIED MAILING; the end the following new subchapter: mines to be appropriate (based on hours ELECTRONIC FILING.— ‘‘Subchapter E—Burden of Proof worked and costs expended) for services of ‘‘(1) REGISTERED MAIL.—For purposes of such individual but only if such award is this section, if any return, claim, statement, ‘‘Sec. 7491. Burden of proof. paid to such individual or such individual’s or other document, or payment, is sent by ‘‘SEC. 7491. BURDEN OF PROOF. employer.’’. ENERAL ULE United States registered mail— ‘‘(a) G R .—The Secretary shall (d) DETERMINATION OF WHETHER POSITION ‘‘(A) such registration shall be prima facie have the burden of proof in any court pro- OF UNITED STATES IS SUBSTANTIALLY JUSTI- evidence that the return, claim, statement, ceeding with respect to any factual issue rel- FIED.—Subparagraph (B) of section 7430(c)(4) or other document was delivered to the agen- evant to ascertaining the income tax liabil- is amended by redesignating clause (iii) as cy, officer, or office to which addressed, and ity of a taxpayer. clause (iv) and by inserting after clause (ii) ‘‘(B) the date of registration shall be ‘‘(b) LIMITATIONS.—Subsection (a) shall the following new clause: deemed the postmark date. only apply with respect to an issue if— ‘‘(iii) EFFECT OF LOSING ON SUBSTANTIALLY ‘‘(2) CERTIFIED MAIL; ELECTRONIC FILING.— ‘‘(1) the taxpayer asserts a reasonable dis- SIMILAR ISSUES.—In determining for purposes The Secretary is authorized to provide by pute with respect to such issue, of clause (i) whether the position of the regulations the extent to which the provi- ‘‘(2) the taxpayer has fully cooperated with United States was substantially justified, sions of paragraph (1) with respect to prima the Secretary with respect to such issue, in- the court shall take into account whether facie evidence of delivery and the postmark cluding providing, within a reasonable period the United States has lost in courts of appeal date shall apply to certified mail and elec- of time, access to and inspection of all wit- for other circuits on substantially similar tronic filing.’’. nesses, information, and documents within issues.’’. (c) ESTABLISHMENT OF PROCEDURES FOR the control of the taxpayer, as reasonably re- (e) EFFECTIVE DATE.—The amendments OTHER INFORMATION.—In the case of taxable quested by the Secretary, and made by this section shall apply to costs in- periods beginning after December 31, 1998, ‘‘(3) in the case of a partnership, corpora- curred (and, in the case of the amendment the Secretary of the Treasury or the Sec- tion, or trust, the taxpayer is described in made by subsection (c), services performed) retary’s delegate shall, to the extent prac- section 7430(c)(4)(A)(ii). more than 180 days after the date of the en- ticable, establish procedures to accept, in ‘‘(c) SUBSTANTIATION.—Nothing in this sec- actment of this Act. electronic form, any other information, tion shall be construed to override any re- SEC. 312. CIVIL DAMAGES FOR NEGLIGENCE IN statements, elections, or schedules, from quirement of this title to substantiate any COLLECTION ACTIONS. taxpayers filing returns electronically, so item.’’. (a) IN GENERAL.—Section 7433 (relating to that such taxpayers will not be required to (b) CONFORMING AMENDMENTS.— civil damages for certain unauthorized col- file any paper. (1) Section 6201 is amended by striking sub- lection actions) is amended— (d) PROCEDURES FOR COMMUNICATIONS BE- section (d) and redesignating subsection (e) (1) in subsection (a), by inserting ‘‘, or by TWEEN IRS AND PREPARER OF ELECTRONI- as subsection (d). reason of negligence,’’ after ‘‘recklessly or CALLY FILED RETURNS.—The Secretary shall (2) The table of subchapters for chapter 76 intentionally’’, and establish procedures for taxpayers to author- is amended by adding at the end the follow- (2) in subsection (b)— ize, on electronically filed returns, the pre- ing new item: (A) in the matter preceding paragraph (1), parer of such returns to communicate with by inserting ‘‘($100,000, in the case of neg- ‘‘Subchapter E. Burden of proof.’’. the Internal Revenue Service on matters in- ligence)’’ after ‘‘$1,000,000’’, and cluded on such returns. (c) EFFECTIVE DATE.—The amendments (B) in paragraph (1), by inserting ‘‘or neg- (e) EFFECTIVE DATE.—The amendments made by this section shall apply to court ligent’’ after ‘‘reckless or intentional’’. made by this section shall take effect on the proceedings arising in connection with ex- (b) REQUIREMENT THAT ADMINISTRATIVE date of the enactment of this Act. aminations commencing after the date of the REMEDIES BE EXHAUSTED.—Paragraph (1) of section 7433(d) is amended to read as follows: SEC. 204. RETURN-FREE TAX SYSTEM. enactment of this Act. ‘‘(1) REQUIREMENT THAT ADMINISTRATIVE Subtitle B—Proceedings by Taxpayers (a) IN GENERAL.—The Secretary of the REMEDIES BE EXHAUSTED.—A judgment for Treasury or the Secretary’s delegate shall SEC. 311. EXPANSION OF AUTHORITY TO AWARD damages shall not be awarded under sub- develop procedures for the implementation COSTS AND CERTAIN FEES. section (b) unless the court determines that of a return-free tax system under which ap- (a) AWARD OF HIGHER ATTORNEY’S FEES the plaintiff has exhausted the administra- propriate individuals would be permitted to BASED ON COMPLEXITY OF ISSUES.—Clause tive remedies available to such plaintiff comply with the Internal Revenue Code of (iii) of section 7430(c)(1)(B) (relating to the within the Internal Revenue Service.’’. 1986 without making the return required award of costs and certain fees) is amended (c) EFFECTIVE DATE.—The amendments under section 6012 of such Code for taxable by inserting ‘‘the difficulty of the issues pre- made by this section shall apply to actions years beginning after 2007. sented in the case, or the local availability of officers or employees of the Internal Reve- (b) REPORT.—Not later than June 30 of each of tax expertise,’’ before ‘‘justifies a higher nue Service after the date of the enactment calendar year after 1999, such Secretary shall rate’’. of this Act. report to the Committee on Ways and Means (b) AWARD OF ADMINISTRATIVE COSTS IN- SEC. 313. INCREASE IN SIZE OF CASES PER- of the House of Representatives, the Com- CURRED AFTER 30-DAY LETTER.—Paragraph MITTED ON SMALL CASE CALENDAR. mittee on Finance of the Senate, and the (2) of section 7430(c) is amended by striking (a) IN GENERAL.—Subsection (a) of section Joint Committee on Taxation on— the last sentence and inserting the following: 7463 (relating to disputes involving $10,000 or March 19, 1998 CONGRESSIONAL RECORD — SENATE S2319 less) is amended by striking ‘‘$10,000’’ each ‘‘(A) the date which is 6 months after the (2) Subparagraph (A) of section 6230(c)(5) is place it appears and inserting ‘‘$25,000’’. date such claim is filed with the Secretary, amended by striking ‘‘section 6013(e)’’ and (b) CONFORMING AMENDMENTS.— or inserting ‘‘section 6015’’. (1) The section heading for section 7463 is ‘‘(B) the date on which the Secretary mails (d) CLERICAL AMENDMENT.—The table of amended by striking ‘‘$10,000’’ and inserting by certified or registered mail a notice to sections for subpart B of part II of sub- ‘‘$25,000’’. such individual denying such claim. chapter A of chapter 61 is amended by insert- (2) The item relating to section 7463 in the Such 90-day period shall be determined by ing after the item relating to section 6014 the table of sections for part II of subchapter C not counting Saturday, Sunday, or a legal following new item: of chapter 76 is amended by striking holiday in the District of Columbia as the ‘‘Sec. 6015. Innocent spouse relief; petition ‘‘$10,000’’ and inserting ‘‘$25,000’’. last day of such period. to Tax Court.’’. (c) EFFECTIVE DATE.—The amendments ‘‘(2) RESTRICTIONS APPLICABLE TO COLLEC- made by this section shall apply to proceed- TION OF ASSESSMENT.— (e) EFFECTIVE DATE.—The amendments ings commencing after the date of the enact- ‘‘(A) IN GENERAL.—Except as otherwise pro- made by this section shall apply to under- ment of this Act. vided in section 6851 or 6861, no levy or pro- statements for taxable years beginning after the date of the enactment of this Act. Subtitle C—Relief for Innocent Spouses and ceeding in court for collection of any assess- for Taxpayers Unable To Manage Their Fi- ment to which such claim relates shall be SEC. 322. SUSPENSION OF STATUTE OF LIMITA- TIONS ON FILING REFUND CLAIMS nancial Affairs Due to Disabilities made, begun, or prosecuted, until the expira- tion of the 90-day period described in para- DURING PERIODS OF DISABILITY. SEC. 321. SPOUSE RELIEVED IN WHOLE OR IN (a) IN GENERAL.—Section 6511 (relating to graph (1), nor, if a petition has been filed PART OF LIABILITY IN CERTAIN limitations on credit or refund) is amended with the Tax Court, until the decision of the CASES. by redesignating subsection (h) as subsection Tax Court has become final. Rules similar to (a) IN GENERAL.—Subpart B of part II of (i) and by inserting after subsection (g) the the rules of section 7485 shall apply with re- subchapter A of chapter 61 is amended by in- following new subsection: spect to the collection of such assessment. serting after section 6014 the following new ‘‘(h) RUNNING OF PERIODS OF LIMITATION ‘‘(B) AUTHORITY TO ENJOIN COLLECTION AC- section: SUSPENDED WHILE TAXPAYER IS UNABLE TO TIONS.—Notwithstanding the provisions of ‘‘SEC. 6015. INNOCENT SPOUSE RELIEF; PETITION MANAGE FINANCIAL AFFAIRS DUE TO DISABIL- section 7421(a), the beginning of such pro- TO TAX COURT. ITY.— ceeding or levy during the time the prohibi- ‘‘(a) SPOUSE RELIEVED OF LIABILITY IN CER- ‘‘(1) IN GENERAL.—In the case of an individ- tion under subparagraph (A) is in force may TAIN CASES.— ual, the running of the periods specified in be enjoined by a proceeding in the proper ‘‘(1) IN GENERAL.—Under procedures pre- subsections (a), (b), and (c) shall be sus- court, including the Tax Court. The Tax scribed by the Secretary, if— pended during any period of such individual’s Court shall have no jurisdiction under this ‘‘(A) a joint return has been made under life that such individual is financially dis- paragraph to enjoin any action or proceeding section 6013 for a taxable year, abled. unless a timely petition for a determination ‘‘(B) on such return there is an understate- ‘‘(2) FINANCIALLY DISABLED.— of such claim has been filed and then only in ment of tax attributable to erroneous items ‘‘(A) IN GENERAL.—For purposes of para- respect of the amount of the assessment to of 1 spouse, graph (1), an individual is financially dis- which such claim relates. ‘‘(C) the other spouse establishes that in abled if such individual is unable to manage ‘‘(C) JEOPARDY COLLECTION.—If the Sec- signing the return he or she did not know, his financial affairs by reason of his medi- retary makes a finding that the collection of and had no reason to know, that there was cally determinable physical or mental im- the tax is in jeopardy, nothing in this sub- such understatement, pairment which can be expected to result in section shall prevent the immediate collec- ‘‘(D) taking into account all the facts and death or which has lasted or can be expected tion of such tax. circumstances, it is inequitable to hold the to last for a continuous period of not less ‘‘(c) SUSPENSION OF RUNNING OF PERIOD OF other spouse liable for the deficiency in tax than 12 months. An individual shall not be LIMITATIONS.—The running of the period of for such taxable year attributable to such considered to have such an impairment un- understatement, and limitations in section 6502 on the collection of the assessment to which the petition less proof of the existence thereof is fur- ‘‘(E) the other spouse claims (in such form under subsection (b) relates shall be sus- nished in such form and manner as the Sec- as the Secretary may prescribe) the benefits pended for the period during which the Sec- retary may require. of this subsection not later than the date retary is prohibited by subsection (b) from ‘‘(B) EXCEPTION WHERE INDIVIDUAL HAS which is 2 years after the date of the assess- collecting by levy or a proceeding in court GUARDIAN, ETC.—An individual shall not be ment of such deficiency, and for 60 days thereafter. treated as financially disabled during any then the other spouse shall be relieved of li- ‘‘(d) APPLICABLE RULES.— period that such individual’s spouse or any ability for tax (including interest, penalties, ‘‘(1) ALLOWANCE OF APPLICATION.—Except other person is authorized to act on behalf of and other amounts) for such taxable year to as provided in paragraph (2), notwithstand- such individual in financial matters.’’. the extent such liability is attributable to ing any other law or rule of law (other than (b) EFFECTIVE DATE.—The amendment such understatement. section 6512(b), 7121, or 7122), credit or refund made by subsection (a) shall apply to periods ‘‘(2) APPORTIONMENT OF RELIEF.—If a spouse shall be allowed or made to the extent at- of disability before, on, or after the date of who, but for paragraph (1)(C), would be re- tributable to the application of this section. the enactment of this Act but shall not lieved of liability under paragraph (1), estab- ‘‘(2) RES JUDICATA.—In the case of any apply to any claim for credit or refund which lishes that in signing the return such spouse claim under subsection (a), the determina- (without regard to such amendment) is did not know, and had no reason to know, tion of the Tax Court in any prior proceeding barred by the operation of any law or rule of the extent of such understatement, then for the same taxable periods in which the de- law (including res judicata) as of January 1, such spouse shall be relieved of liability for cision has become final, shall be conclusive 1998. tax (including interest, penalties, and other except with respect to the qualification of Subtitle D—Provisions Relating to Interest amounts) for such taxable year to the extent the spouse for relief which was not an issue that such liability is attributable to the por- SEC. 331. ELIMINATION OF INTEREST RATE DIF- in such proceeding. The preceding sentence FERENTIAL ON OVERLAPPING PERI- tion of such understatement of which such shall not apply if the Tax Court determines ODS OF INTEREST ON INCOME TAX spouse did not know and had no reason to that the spouse participated meaningfully in OVERPAYMENTS AND UNDERPAY- know. such prior proceeding. MENTS. ‘‘(3) UNDERSTATEMENT.—For purposes of ‘‘(3) LIMITATION ON TAX COURT JURISDIC- (a) IN GENERAL.—Section 6621 (relating to this subsection, the term ‘understatement’ TION.—If a suit for refund is begun by either determination of rate of interest) is amended has the meaning given to such term by sec- spouse pursuant to section 6532, the Tax by adding at the end the following new sub- tion 6662(d)(2)(A). Court shall lose jurisdiction of the spouse’s section: ‘‘(4) SPECIAL RULE FOR COMMUNITY PROP- action under this section to whatever extent ‘‘(d) ELIMINATION OF INTEREST ON OVERLAP- ERTY INCOME.—For purposes of this sub- jurisdiction is acquired by the district court PING PERIODS OF INCOME TAX OVERPAYMENTS section, the determination of the spouse to or the United States Court of Federal Claims AND UNDERPAYMENTS.—To the extent that, whom items of gross income (other than over the taxable years that are the subject of for any period, interest is payable under sub- gross income from property) are attributable the suit for refund.’’. chapter A and allowable under subchapter B shall be made without regard to community (b) SEPARATE FORM FOR APPLYING FOR on equivalent underpayments and overpay- property laws. SPOUSAL RELIEF.—Not later than 180 days ments by the same taxpayer of tax imposed ‘‘(b) PETITION FOR REVIEW BY TAX COURT.— after the date of the enactment of this Act, by chapters 1 and 2, the net rate of interest In the case of an individual who has filed a the Secretary of the Treasury shall develop a under this section on such amounts shall be claim under subsection (a) within the period separate form with instructions for use by zero for such period.’’. specified in subsection (a)(1)(E)— taxpayers in applying for relief under section (b) CONFORMING AMENDMENT.—Subsection ‘‘(1) IN GENERAL.—Such individual may pe- 6015(a) of the Internal Revenue Code of 1986, (f) of section 6601 (relating to satisfaction by tition the Tax Court (and the Tax Court as added by this section. credits) is amended by adding at the end the shall have jurisdiction) to determine such (c) CONFORMING AMENDMENTS.— following new sentence: ‘‘The preceding sen- claim if such petition is filed during the 90- (1) Section 6013 is amended by striking sub- tence shall not apply to the extent that sec- day period beginning on the earlier of— section (e). tion 6621(d) applies.’’. S2320 CONGRESSIONAL RECORD — SENATE March 19, 1998

(c) EFFECTIVE DATE.—The amendments financial status or economic reality exam- period at the end of subparagraph (I) and in- made by this section shall apply to interest ination techniques to determine the exist- serting ‘‘, and’’, and by adding at the end the for calendar quarters beginning after the ence of unreported income of any taxpayer following: date of the enactment of this Act. unless the Secretary has a reasonable indica- ‘‘(J) any owner or developer of a tax-relat- SEC. 332. INCREASE IN OVERPAYMENT RATE PAY- tion that there is a likelihood of such unre- ed computer source code (as defined in sec- ABLE TO TAXPAYERS OTHER THAN ported income.’’. tion 7602(f)(4)). CORPORATIONS. SEC. 344. LIMITATION ON AUTHORITY TO RE- Subparagraph (J) shall apply only with re- (a) IN GENERAL.—Subparagraph (B) of sec- QUIRE PRODUCTION OF COMPUTER spect to a summons requiring the production tion 6621(a)(1) (defining overpayment rate) is SOURCE CODE. of the source code referred to in subpara- amended to read as follows: (a) IN GENERAL.—Section 7602 is amended graph (J) or the program and data described ‘‘(B) 3 percentage points (2 percentage by adding at the end the following new sub- in section 7602(f)(2)(A)(ii) to which such points in the case of a corporation).’’. section: source code relates.’’. ‘‘(f) LIMITATION ON AUTHORITY TO REQUIRE (b) EFFECTIVE DATE.—The amendment (c) EFFECTIVE DATE.—The amendments PRODUCTION OF COMPUTER SOURCE CODE.— made by this section shall apply to interest made by this section shall apply to sum- ‘‘(1) IN GENERAL.—No summons may be for calendar quarters beginning after the monses issued more than 90 days after the issued under this title, and the Secretary date of the enactment of this Act. date of the enactment of this Act. may not begin any action under section 7604 Subtitle E—Protections for Taxpayers to enforce any summons, to produce or ex- SEC. 345. PROCEDURES RELATING TO EXTEN- Subject to Audit or Collection Activities amine any tax-related computer source code. SIONS OF STATUTE OF LIMITATIONS SEC. 341. PRIVILEGE OF CONFIDENTIALITY EX- BY AGREEMENT. ‘‘(2) EXCEPTION WHERE INFORMATION NOT TENDED TO TAXPAYER’S DEALINGS (a) IN GENERAL.—Paragraph (4) of section OTHERWISE AVAILABLE TO VERIFY CORRECT- WITH NON-ATTORNEYS AUTHORIZED 6501(c) (relating to the period for limitations NESS OF ITEM ON RETURN.—Paragraph (1) TO PRACTICE BEFORE INTERNAL on assessment and collection) is amended— shall not apply to any portion of a tax-relat- REVENUE SERVICE. (1) by striking ‘‘Where’’ and inserting the Section 7602 (relating to examination of ed computer source code if— following: books and witnesses) is amended by adding ‘‘(A) the Secretary is unable to otherwise ‘‘(A) IN GENERAL.—Where’’, at the end the following new subsection: reasonably ascertain the correctness of any (2) by moving the text 2 ems to the right, ‘‘(d) PRIVILEGE OF CONFIDENTIALITY EX- item on a return from— and TENDED TO TAXPAYER’S DEALINGS WITH NON- ‘‘(i) the taxpayer’s books, papers, records, (3) by adding at the end the following new ATTORNEYS AUTHORIZED TO PRACTICE BEFORE or other data, or subparagraph: INTERNAL REVENUE SERVICE.— ‘‘(ii) the computer software program and ‘‘(B) NOTICE TO TAXPAYER OF RIGHT TO ‘‘(1) IN GENERAL.—In any noncriminal pro- the associated data which, when executed, REFUSE OR LIMIT EXTENSION.—The Secretary ceeding before the Internal Revenue Service, produces the output to prepare the return for shall notify the taxpayer of the taxpayer’s the taxpayer shall be entitled to the same the period involved, and right to refuse to extend the period of limita- common law protections of confidentiality ‘‘(B) the Secretary identifies with reason- tions, or to limit such extension to particu- with respect to tax advice furnished by any able specificity such portion as to be used to lar issues, on each occasion when the tax- qualified individual (in a manner consistent verify the correctness of such item. payer is requested to provide such consent.’’. with State law for such individual’s profes- The Secretary shall be treated as meeting (b) EFFECTIVE DATE.—The amendments sion) as the taxpayer would have if such indi- the requirements of subparagraphs (A) and made by this section shall apply to requests vidual were an attorney. (B) after the 90th day after the Secretary to extend the period of limitations made ‘‘(2) QUALIFIED INDIVIDUAL.—For purposes makes a formal request to the taxpayer and after the date of the enactment of this Act. of paragraph (1), the term ‘qualified individ- the owner or developer of the computer soft- ual’ means any individual (other than an at- ware program for the material described in SEC. 346. OFFERS-IN-COMPROMISE. torney) who is authorized to practice before subparagraph (A)(ii) if such material is not (a) ALLOWANCES FOR BASIC LIVING EX- the Internal Revenue Service.’’. provided before the close of such 90th day. PENSES.—Section 7122 (relating to offers-in- SEC. 342. EXPANSION OF AUTHORITY TO ISSUE ‘‘(3) OTHER EXCEPTIONS.—Paragraph (1) compromise) is amended by adding at the TAXPAYER ASSISTANCE ORDERS. shall not apply to— end the following new subsection: Section 7811(a) (relating to taxpayer assist- ‘‘(A) any inquiry into any offense con- ‘‘(c) ALLOWANCES FOR BASIC LIVING EX- ance orders) is amended— nected with the administration or enforce- PENSES.—The Secretary shall develop and (1) by striking ‘‘Upon application’’ and in- ment of the internal revenue laws, and publish schedules of national and local al- serting the following: ‘‘(B) any tax-related computer source code lowances designed to provide that taxpayers ‘‘(1) IN GENERAL.—Upon application’’, developed by (or primarily for the benefit of) entering into a compromise have an ade- (2) by moving the text 2 ems to the right, the taxpayer or a related person (within the quate means to provide for basic living ex- and meaning of section 267 or 707(b)) for internal penses.’’. (3) by adding at the end the following new use by the taxpayer or such person and not (b) PREPARATION OF STATEMENT RELATING paragraphs: for commercial distribution. TO OFFERS-IN-COMPROMISE.—The Secretary of ‘‘(2) ISSUANCE OF TAXPAYER ASSISTANCE OR- ‘‘(4) TAX-RELATED COMPUTER SOURCE the Treasury shall prepare a statement DERS.—For purposes of determining whether CODE.—For purposes of this subsection, the which sets forth in simple, nontechnical to issue a taxpayer assistance order, the term ‘tax-related computer source code’ terms the rights of a taxpayer and the obli- Taxpayer Advocate shall consider the follow- means— gations of the Internal Revenue Service re- ing factors, among others: ‘‘(A) the computer source code for any lating to offers-in-compromise. Such state- ‘‘(A) Whether there is an immediate threat computer software program for accounting, ment shall— of adverse action. tax return preparation or compliance, or tax (1) advise taxpayers who have entered into ‘‘(B) Whether there has been an unreason- planning, or a compromise agreement of the advantages able delay in resolving taxpayer account ‘‘(B) design and development materials re- of promptly notifying the Internal Revenue problems. lated to such a software program (including Service of any change of address or marital ‘‘(C) Whether the taxpayer will have to pay program notes and memoranda). status, and significant costs (including fees for profes- ‘‘(5) RIGHT TO CONTEST SUMMONS.—The de- (2) provide notice to taxpayers that in the sional representation) if relief is not grant- termination of whether the requirements of case of a compromise agreement terminated ed. subparagraphs (A) and (B) of paragraph (2) due to the actions of 1 spouse or former ‘‘(D) Whether the taxpayer will suffer ir- are met or whether any exception under spouse, the Internal Revenue Service will, reparable injury, or a long-term adverse im- paragraph (3) applies may be contested in upon application, reinstate such agreement pact, if relief is not granted. any proceeding under section 7604. with the spouse or former spouse who re- ‘‘(3) STANDARD WHERE ADMINISTRATIVE ‘‘(6) PROTECTION OF TRADE SECRETS AND mains in compliance with such agreement. GUIDANCE NOT FOLLOWED.—In cases where any OTHER CONFIDENTIAL INFORMATION.—In any SEC. 347. NOTICE OF DEFICIENCY TO SPECIFY Internal Revenue Service employee is not court proceeding to enforce a summons for DEADLINES FOR FILING TAX COURT following applicable published administra- any portion of a tax-related computer source PETITION. tive guidance (including the Internal Reve- code, the court may issue any order nec- (a) IN GENERAL.—The Secretary of the nue Manual), the Taxpayer Advocate shall essary to prevent the disclosure of trade se- Treasury or the Secretary’s delegate shall construe the factors taken into account in crets or other confidential information with include on each notice of deficiency under determining whether to issue a taxpayer as- respect to such source code, including pro- section 6212 of the Internal Revenue Code of sistance order in the manner most favorable viding that any information be placed under 1986 the date determined by such Secretary to the taxpayer.’’. seal to be opened only as directed by the (or delegate) as the last day on which the SEC. 343. LIMITATION ON FINANCIAL STATUS court.’’. taxpayer may file a petition with the Tax AUDIT TECHNIQUES. (b) APPLICATION OF SPECIAL PROCEDURES Court. Section 7602 is amended by adding at the FOR THIRD-PARTY SUMMONSES.—Paragraph (b) LATER FILING DEADLINES SPECIFIED ON end the following new subsection: (3) of section 7609(a) (defining third-party NOTICE OF DEFICIENCY TO BE BINDING.—Sub- ‘‘(e) LIMITATION ON EXAMINATION ON UNRE- recordkeeper) is amended by striking ‘‘and’’ section (a) of section 6213 (relating to restric- PORTED INCOME.—The Secretary shall not use at the end of subparagraph (H), by striking a tions applicable to deficiencies; petition to March 19, 1998 CONGRESSIONAL RECORD — SENATE S2321

Tax Court) is amended by adding at the end (2) to suspend an interview pursuant to ‘‘(2) CLINIC.—The term ‘clinic’ includes— the following new sentence: ‘‘Any petition section 7521(b)(2) of the Internal Revenue ‘‘(A) a clinical program at an accredited filed with the Tax Court on or before the last Code of 1986. law school in which students represent low date specified for filing such petition by the SEC. 353. DISCLOSURE OF CRITERIA FOR EXAM- income taxpayers in controversies arising Secretary in the notice of deficiency shall be INATION SELECTION. under this title, and treated as timely filed.’’. (a) IN GENERAL.—The Secretary of the ‘‘(B) an organization described in section (c) EFFECTIVE DATE.—Subsection (a) and Treasury or the Secretary’s delegate shall, 501(c) and exempt from tax under section the amendment made by subsection (b) shall as soon as practicable, but not later than 180 501(a) which satisfies the requirements of apply to notices mailed after December 31, days after the date of the enactment of this paragraph (1) through representation of tax- 1998. Act, incorporate into the statement required payers or referral of taxpayers to qualified SEC. 348. REFUND OR CREDIT OF OVERPAY- by section 6227 of the Omnibus Taxpayer Bill representatives. MENTS BEFORE FINAL DETERMINA- of Rights (Internal Revenue Service Publica- ‘‘(3) QUALIFIED REPRESENTATIVE.—The term TION. tion No. 1) a statement which sets forth in ‘qualified representative’ means any individ- (a) TAX COURT PROCEEDINGS.—Subsection simple and nontechnical terms the criteria ual (whether or not an attorney) who is au- (a) of section 6213 is amended— and procedures for selecting taxpayers for thorized to practice before the Internal Rev- (1) by striking ‘‘, including the Tax Court.’’ examination. Such statement shall not in- enue Service or the applicable court. and inserting ‘‘, including the Tax Court, and clude any information the disclosure of ‘‘(c) SPECIAL RULES AND LIMITATIONS.— a refund may be ordered by such court of any which would be detrimental to law enforce- ‘‘(1) AGGREGATE LIMITATION.—Unless other- amount collected within the period during ment, but shall specify the general proce- wise provided by specific appropriation, the which the Secretary is prohibited from col- dures used by the Internal Revenue Service, Secretary shall not allocate more than lecting by levy or through a proceeding in including whether taxpayers are selected for $3,000,000 per year (exclusive of costs of ad- court under the provisions of this sub- examination on the basis of information ministering the program) to grants under section.’’, and available in the media or on the basis of in- this section. formation provided to the Internal Revenue (2) by striking ‘‘to enjoin any action or ‘‘(2) LIMITATION ON ANNUAL GRANTS TO A Service by informants. proceeding’’ and inserting ‘‘to enjoin any ac- CLINIC.—The aggregate amount of grants (b) TRANSMISSION TO COMMITTEES OF CON- tion or proceeding or order any refund’’. which may be made under this section to a GRESS.—The Secretary shall transmit drafts (b) OTHER PROCEEDINGS.—Subsection (a) of clinic for a year shall not exceed $100,000. of the statement required under subsection section 6512 is amended by striking the pe- ‘‘(3) MULTI-YEAR GRANTS.—Upon applica- riod at the end of paragraph (4) and inserting (a) (or proposed revisions to any such state- ment) to the Committee on Ways and Means tion of a qualified low income taxpayer clin- ‘‘, and’’, and by inserting after paragraph (4) ic, the Secretary is authorized to award a the following new paragraphs: of the House of Representatives, the Com- mittee on Finance of the Senate, and the multi-year grant not to exceed 3 years. ‘‘(5) As to any amount collected within the ‘‘(4) CRITERIA FOR AWARDS.—In determining period during which the Secretary is prohib- Joint Committee on Taxation on the same day. whether to make a grant under this section, ited from making the assessment or from the Secretary shall consider— collecting by levy or through a proceeding in SEC. 354. EXPLANATIONS OF APPEALS AND COL- LECTION PROCESS. ‘‘(A) the numbers of taxpayers who will be court under the provisions of section 6213(a), served by the clinic, including the number of and The Secretary of the Treasury or the Sec- retary’s delegate shall, as soon as prac- taxpayers in the geographical area for whom ‘‘(6) As to overpayments the Secretary is English is a second language, authorized to refund or credit pending appeal ticable but not later than 180 days after the date of the enactment of this Act, include ‘‘(B) the existence of other low income tax- as provided in subsection (b).’’. payer clinics serving the same population, (c) REFUND OR CREDIT PENDING APPEAL.— with any 1st letter of proposed deficiency which allows the taxpayer an opportunity ‘‘(C) the quality of the program offered by Paragraph (1) of section 6512(b) is amended the low income taxpayer clinic, including by adding at the end the following new sen- for administrative review in the Internal Revenue Service Office of Appeals an expla- the qualifications of its administrators and tence: ‘‘If a notice of appeal in respect of the qualified representatives, and its record, if decision of the Tax Court is filed under sec- nation of the appeals process and the collec- tion process with respect to such proposed any, in providing service to low income tax- tion 7483, the Secretary is authorized to re- payers, and fund or credit the overpayment determined deficiency. Subtitle G—Low Income Taxpayer Clinics ‘‘(D) alternative funding sources available by the Tax Court to the extent the overpay- to the clinic, including amounts received SEC. 361. LOW INCOME TAXPAYER CLINICS. ment is not contested on appeal.’’. from other grants and contributions, and the (d) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—Chapter 77 (relating to endowment and resources of the institution made by this section shall take effect on the miscellaneous provisions) is amended by add- sponsoring the clinic. date of the enactment of this Act. ing at the end the following new section: ‘‘(5) REQUIREMENT OF MATCHING FUNDS.—A SEC. 349. THREAT OF AUDIT PROHIBITED TO CO- ‘‘SEC. 7525. LOW INCOME TAXPAYER CLINICS. low income taxpayer clinic must provide ERCE TIP REPORTING ALTERNATIVE ‘‘(a) IN GENERAL.—The Secretary may, sub- matching funds on a dollar for dollar basis COMMITMENT AGREEMENTS. ject to the availability of appropriated for all grants provided under this section. The Secretary of the Treasury or the Sec- funds, make grants to provide matching Matching funds may include— retary’s delegate shall instruct employees of funds for the development, expansion, or ‘‘(A) the salary (including fringe benefits) the Internal Revenue Service that they may continuation of qualified low income tax- of individuals performing services for the not threaten to audit any taxpayer in an at- payer clinics. tempt to coerce the taxpayer into entering ‘‘(b) DEFINITIONS.—For purposes of this sec- clinic, and into a Tip Reporting Alternative Commit- tion— ‘‘(B) the cost of equipment used in the clin- ment Agreement. ‘‘(1) QUALIFIED LOW INCOME TAXPAYER CLIN- ic. Indirect expenses, including general over- Subtitle F—Disclosures to Taxpayers IC.— ‘‘(A) IN GENERAL.—The term ‘qualified low head of the institution sponsoring the clinic, SEC. 351. EXPLANATION OF JOINT AND SEVERAL shall not be counted as matching funds.’’. LIABILITY. income taxpayer clinic’ means a clinic (b) CLERICAL AMENDMENT.—The table of that— The Secretary of the Treasury or the Sec- sections for chapter 77 is amended by adding ‘‘(i) does not charge more than a nominal retary’s delegate shall, as soon as prac- at the end the following new section: ticable, but not later than 180 days after the fee for its services (except for reimbursement date of the enactment of this Act, establish of actual costs incurred), and ‘‘Sec. 7525. Low income taxpayer clinics.’’. procedures to clearly alert married tax- ‘‘(ii)(I) represents low income taxpayers in (c) EFFECTIVE DATE.—The amendments payers of their joint and several liabilities controversies with the Internal Revenue made by this section shall take effect on the on all appropriate publications and instruc- Service, or date of the enactment of this Act. tions. ‘‘(II) operates programs to inform individ- Subtitle H—Other Matters uals for whom English is a second language SEC. 352. EXPLANATION OF TAXPAYERS’ RIGHTS SEC. 371. ACTIONS FOR REFUND WITH RESPECT IN INTERVIEWS WITH THE INTER- about their rights and responsibilities under TO CERTAIN ESTATES WHICH HAVE NAL REVENUE SERVICE. this title. ELECTED THE INSTALLMENT METH- The Secretary of the Treasury or the Sec- ‘‘(B) REPRESENTATION OF LOW INCOME TAX- OD OF PAYMENT. retary’s delegate shall, as soon as prac- PAYERS.—A clinic meets the requirements of (a) IN GENERAL.—Section 7422 is amended ticable, but not later than 180 days after the subparagraph (A)(ii)(I) if— by redesignating subsection (j) as subsection date of the enactment of this Act, revise the ‘‘(i) at least 90 percent of the taxpayers (k) and by inserting after subsection (i) the statement required by section 6227 of the represented by the clinic have incomes following new subsection: Omnibus Taxpayer Bill of Rights (Internal which do not exceed 250 percent of the pov- ‘‘(j) SPECIAL RULE FOR ACTIONS WITH RE- Revenue Service Publication No. 1) to more erty level, as determined in accordance with SPECT TO ESTATES FOR WHICH AN ELECTION clearly inform taxpayers of their rights— criteria established by the Director of the UNDER SECTION 6166 IS MADE.— (1) to be represented at interviews with the Office of Management and Budget, and ‘‘(1) IN GENERAL.—The district courts of the Internal Revenue Service by any person au- ‘‘(ii) the amount in controversy for any United States and the United States Court of thorized to practice before the Internal Rev- taxable year generally does not exceed the Federal Claims shall have jurisdiction over enue Service, and amount specified in section 7463. any action brought by the representative of S2322 CONGRESSIONAL RECORD — SENATE March 19, 1998

an estate to which this subsection applies to (c) EFFECTIVE DATE.—The amendments ‘‘(e) INVESTIGATIONS.—The Joint Commit- determine the correct amount of the estate made by this section shall apply to requests tee shall review all requests (other than re- tax liability of such estate (or for any refund made by the Archivist of the United States quests by the chairman or ranking member with respect thereto) even if the full amount after the date of the enactment of this Act. of a Committee or Subcommittee) for inves- of such liability has not been paid. SEC. 374. PAYMENT OF TAXES. tigations of the Internal Revenue Service by ‘‘(2) ESTATES TO WHICH SUBSECTION AP- The Secretary of the Treasury or the Sec- the General Accounting Office, and approve PLIES.—This subsection shall apply to any retary’s delegate shall establish such rules, such requests when appropriate, with a view estate if, as of the date the action is filed— regulations, and procedures as are necessary towards eliminating overlapping investiga- ‘‘(A) an election under section 6166 is in ef- to allow payment of taxes by check or tions, ensuring that the General Accounting fect with respect to such estate, money order made payable to the United Office has the capacity to handle the inves- ‘‘(B) no portion of the installments payable States Treasury. tigation, and ensuring that investigations focus on areas of primary importance to tax under such section have been accelerated, SEC. 375. CLARIFICATION OF AUTHORITY OF SEC- and RETARY RELATING TO THE MAKING administration. ‘‘(C) all installments the due date for OF ELECTIONS. ‘‘(f) RELATING TO JOINT HEARINGS.— which is on or before the date the action is Subsection (d) of section 7805 is amended ‘‘(1) IN GENERAL.—The Chief of Staff, and filed have been paid. by striking ‘‘by regulations or forms’’. such other staff as are appointed pursuant to section 8004, shall provide such assistance as ‘‘(3) PROHIBITION ON COLLECTION OF DIS- SEC. 376. LIMITATION ON PENALTY ON INDIVID- is required for joint hearings described in ALLOWED LIABILITY.—If the court redeter- UAL’S FAILURE TO PAY FOR MONTHS paragraph (2). mines under paragraph (1) the estate tax li- DURING PERIOD OF INSTALLMENT ‘‘(2) JOINT HEARINGS.—On or before April 1 ability of an estate, no part of such liability AGREEMENT. of each calendar year after 1997, there shall which is disallowed by a decision of such (a) IN GENERAL.—Section 6651 (relating to be a joint hearing of two members of the ma- court which has become final may be col- failure to file tax return or to pay tax) is jority and one member of the minority from lected by the Secretary, and amounts paid in amended by adding at the end the following each of the Committees on Finance, Appro- excess of the installments determined by the new subsection: priations, and Government Affairs of the court as currently due and payable shall be ‘‘(h) LIMITATION ON PENALTY ON INDIVID- Senate, and the Committees on Ways and refunded.’’. UAL’S FAILURE TO PAY FOR MONTHS DURING Means, Appropriations, and Government Re- (b) EXTENSION OF TIME TO FILE REFUND PERIOD OF INSTALLMENT AGREEMENT.—No ad- SUIT.—Section 7479 (relating to declaratory dition to the tax shall be imposed under form and Oversight of the House of Rep- judgments relating to eligibility of estate paragraph (2) or (3) of subsection (a) with re- resentatives, to review the strategic plans with respect to installment payments under spect to the tax liability of an individual for and budget for the Internal Revenue Service. section 6166) is amended by adding at the end any month during which an installment After the conclusion of the annual filing sea- the following new subsection: agreement under section 6159 is in effect for son, there shall be a second annual joint ‘‘(c) EXTENSION OF TIME TO FILE REFUND the payment of such tax to the extent that hearing to review the other matters outlined SUIT.—The 2-year period in section 6532(a)(1) imposing an addition to the tax under such in section 8022(3)(C).’’. for filing suit for refund after disallowance paragraph for such month would result in (b) EFFECTIVE DATES.— of a claim shall be suspended during the 90- the aggregate number of percentage points of (1) Subsection (e) of section 8021 of the In- day period after the mailing of the notice re- such addition to the tax exceeding 9.5.’’. ternal Revenue Code of 1986, as added by sub- ferred to in subsection (b)(3) and, if a plead- (b) EFFECTIVE DATE.—The amendment section (a) of this section, shall apply to re- ing has been filed with the Tax Court under made by this section shall apply for purposes quests made after the date of enactment of this section, until the decision of the Tax of determining additions to the tax for this Act. Court has become final.’’. months beginning after the date of the en- (2) Subsection (f) of section 8021 of the In- (c) EFFECTIVE DATE.—The amendments actment of this Act. ternal Revenue Code of 1986, as added by sub- made by this section shall apply to any Subtitle I—Studies section (a) of this section, shall take effect on the date of the enactment of this Act. claim for refund filed after the date of the SEC. 381. PENALTY ADMINISTRATION. enactment of this Act. The Joint Committee on Taxation shall SEC. 402. COORDINATED OVERSIGHT REPORTS. SEC. 372. CATALOGING COMPLAINTS. conduct a study— (a) IN GENERAL.—Paragraph (3) of section 8022 (relating to the duties of the Joint Com- In collecting data for the report required (1) reviewing the administration and im- mittee on Taxation) is amended to read as under section 1211 of Taxpayer Bill of Rights plementation by the Internal Revenue Serv- follows: 2 (Public Law 104–168), the Secretary of the ice of the penalty reform provisions of the ‘‘(3) REPORTS.— Treasury or the Secretary’s delegate shall Omnibus Budget Reconciliation Act of 1989, ‘‘(A) To report, from time to time, to the maintain records of taxpayer complaints of and Committee on Finance and the Committee misconduct by Internal Revenue Service em- (2) making any legislative and administra- on Ways and Means, and, in its discretion, to ployees on an individual employee basis. tive recommendations it deems appropriate the Senate or House of Representatives, or SEC. 373. ARCHIVE OF RECORDS OF INTERNAL to simplify penalty administration and re- REVENUE SERVICE. both, the results of its investigations, to- duce taxpayer burden. (a) IN GENERAL.—Subsection (l) of section Such study shall be submitted to the Com- gether with such recommendations as it may 6103 (relating to confidentiality and disclo- mittee on Ways and Means of the House of deem advisable. sure of returns and return information) is Representatives and the Committee on Fi- ‘‘(B) To report, annually, to the Committee amended by adding at the end the following nance of the Senate not later than 9 months on Finance and the Committee on Ways and new paragraph: after the date of enactment of this Act. Means on the overall state of the Federal tax ‘‘(17) DISCLOSURE TO NATIONAL ARCHIVES system, together with recommendations SEC. 382. CONFIDENTIALITY OF TAX RETURN IN- AND RECORDS ADMINISTRATION.—The Sec- FORMATION. with respect to possible simplification pro- retary shall, upon written request from the The Joint Committee on Taxation shall posals and other matters relating to the ad- Archivist of the United States, disclose or conduct a study of the scope and use of pro- ministration of the Federal tax system as it authorize the disclosure of returns and re- visions regarding taxpayer confidentiality, may deem advisable. turn information to officers and employees and shall report the findings of such study, ‘‘(C) To report, annually, to the Commit- of the National Archives and Records Admin- together with such recommendations as it tees on Finance, Appropriations, and Gov- istration for purposes of, and only to the ex- deems appropriate, to the Congress not later ernment Affairs of the Senate, and to the tent necessary in, the appraisal of records than one year after the date of the enact- Committees on Ways and Means, Appropria- for destruction or retention. No such officer ment of this Act. Such study shall examine tions, and Government Reform and Over- or employee shall, except to the extent au- the present protections for taxpayer privacy, sight of the House of Representatives, with thorized by subsections (f), (i)(7), or (p), dis- the need for third parties to use tax return respect to— close any return or return information dis- information, and the ability to achieve ‘‘(i) strategic and business plans for the In- closed under the preceding sentence to any greater levels of voluntary compliance by al- ternal Revenue Service; person other than to the Secretary, or to an- lowing the public to know who is legally re- ‘‘(ii) progress of the Internal Revenue Serv- other officer or employee of the National Ar- quired to file tax returns, but does not file ice in meeting its objectives; chives and Records Administration whose of- tax returns. ‘‘(iii) the budget for the Internal Revenue ficial duties require such disclosure for pur- Service and whether it supports its objec- poses of such appraisal.’’. TITLE IV—CONGRESSIONAL ACCOUNT- tives; (b) CONFORMING AMENDMENTS.—Section ABILITY FOR THE INTERNAL REVENUE ‘‘(iv) progress of the Internal Revenue 6103(p) is amended— SERVICE Service in improving taxpayer service and (1) in paragraph (3)(A), by striking ‘‘or Subtitle A—Oversight compliance; (16)’’ and inserting ‘‘(16), or (17)’’, SEC. 401. EXPANSION OF DUTIES OF THE JOINT ‘‘(v) progress of the Internal Revenue Serv- (2) in paragraph (4), by striking ‘‘or (14)’’ COMMITTEE ON TAXATION. ice on technology modernization; and and inserting ‘‘, (14), or (17)’’ in the matter (a) IN GENERAL.—Section 8021 (relating to ‘‘(vi) the annual filing season.’’. preceding subparagraph (A), and the powers of the Joint Committee on Tax- (b) EFFECTIVE DATE.—The amendment (3) in paragraph (4)(F)(ii), by striking ‘‘or ation) is amended by adding at the end the made by this section shall take effect on the (15)’’ and inserting ‘‘, (15), or (17)’’. following new subsections: date of the enactment of this Act. March 19, 1998 CONGRESSIONAL RECORD — SENATE S2323

Subtitle B—Budget (b) LEGISLATION SUBJECT TO POINT OF (1) 1986 CODE.—The term ‘‘1986 Code’’ SEC. 411. FUNDING FOR CENTURY DATE CHANGE. ORDER IN HOUSE OF REPRESENTATIVES.— means the Internal Revenue Code of 1986. It is the sense of Congress that the Inter- (1) LEGISLATION REPORTED BY COMMITTEE ON (2) 1997 ACT.—The term ‘‘1997 Act’’ means nal Revenue Service efforts to resolve the WAYS AND MEANS.—Clause 2(l) of rule XI of the Taxpayer Relief Act of 1997. century date change computing problems the Rules of the House of Representatives is SEC. 603. AMENDMENTS RELATED TO TITLE I OF should be funded fully to provide for certain amended by adding at the end the following 1997 ACT. resolution of such problems. new subparagraph: (a) AMENDMENTS RELATED TO SECTION 101(a) SEC. 412. FINANCIAL MANAGEMENT ADVISORY ‘‘(8) The report of the Committee on Ways OF 1997 ACT.— GROUP. and Means on any bill or joint resolution (1) Subsection (d) of section 24 of the 1986 The Commissioner shall convene a finan- containing any provision amending the In- Code is amended— cial management advisory group consisting ternal Revenue Code of 1986 shall include a (A) by striking paragraphs (3) and (4), of individuals with expertise in govern- Tax Complexity Analysis prepared by the (B) by redesignating paragraph (5) as para- mental accounting and auditing from both Joint Committee on Taxation in accordance graph (3), and the private sector and the Government to ad- with section 8024 of the Internal Revenue (C) by striking paragraphs (1) and (2) and vise the Commissioner on financial manage- Code of 1986 unless the Committee on Ways inserting the following new paragraphs: ment issues, including— and Means causes to have such Analysis ‘‘(1) IN GENERAL.—In the case of a taxpayer (1) the continued partnership between the printed in the Congressional Record prior to with 3 or more qualifying children for any Internal Revenue Service and the General the consideration of the bill or joint resolu- taxable year, the aggregate credits allowed Accounting Office; tion.’’. under subpart C shall be increased by the (2) the financial accounting aspects of the (2) CONFERENCE REPORTS.—Rule XXVIII of lesser of— Internal Revenue Service’s system mod- the Rules of the House of Representatives is ‘‘(A) the credit which would be allowed ernization; amended by adding at the end the following under this section without regard to this (3) the necessity and utility of year-round new clause: subsection and the limitation under section auditing; and ‘‘7. It shall not be in order to consider the 26(a), or (4) the Commissioner’s plans for improving report of a committee of conference which ‘‘(B) the amount by which the aggregate its financial management system. contains any provision amending the Inter- amount of credits allowed by this subpart Subtitle C—Tax Law Complexity nal Revenue Code of 1986 unless— (without regard to this subsection) would in- SEC. 421. ROLE OF THE INTERNAL REVENUE ‘‘(a) the accompanying joint explanatory crease if the limitation imposed by section SERVICE. statement contains a Tax Complexity Analy- 26(a) were increased by the excess (if any) It is the sense of Congress that the Inter- sis prepared by the Joint Committee on Tax- of— nal Revenue Service should provide the Con- ation in accordance with section 8024 of the ‘‘(i) the taxpayer’s social security taxes for gress with an independent view of tax admin- Internal Revenue Code of 1986, or the taxable year, over istration, and that during the legislative ‘‘(b) such Analysis is printed in the Con- ‘‘(ii) the credit allowed under section 32 process, the tax writing committees of the gressional Record prior to the consideration (determined without regard to subsection Congress should hear from front-line tech- of the report.’’. (n)) for the taxable year. (c) EFFECTIVE DATE.—The amendments nical experts at the Internal Revenue Serv- The amount of the credit allowed under this made by this section shall apply to legisla- ice with respect to the administrability of subsection shall not be treated as a credit al- tion considered on or after January 1, 1998. pending amendments to the Internal Reve- lowed under this subpart and shall reduce nue Code of 1986. TITLE V—CLARIFICATION OF DEDUCTION the amount of credit otherwise allowable SEC. 422. TAX COMPLEXITY ANALYSIS. FOR DEFERRED COMPENSATION under subsection (a) without regard to sec- (a) REQUIRING ANALYSIS TO ACCOMPANY SEC. 501. CLARIFICATION OF DEDUCTION FOR tion 26(a). CERTAIN LEGISLATION.— DEFERRED COMPENSATION. ‘‘(2) REDUCTION OF CREDIT TO TAXPAYER (1) IN GENERAL.—Chapter 92 (relating to (a) IN GENERAL.—Subsection (a) of section SUBJECT TO ALTERNATIVE MINIMUM TAX.—The powers and duties of the Joint Committee on 404 is amended by adding at the end the fol- credit determined under this subsection for Taxation) is amended by adding at the end lowing new paragraph: the taxable year shall be reduced by the ex- the following new section: ‘‘(11) DETERMINATIONS RELATING TO DE- cess (if any) of— ‘‘SEC. 8024. TAX COMPLEXITY ANALYSIS. FERRED COMPENSATION.— ‘‘(A) the amount of tax imposed by section ‘‘(a) IN GENERAL.—If— ‘‘(A) IN GENERAL.—For purposes of deter- 55 (relating to alternative minimum tax) ‘‘(1) a bill or joint resolution is reported by mining under this section— with respect to such taxpayer for such tax- the Committee on Finance of the Senate, the ‘‘(i) whether compensation of an employee able year, over Committee on Ways and Means of the House is deferred compensation, and ‘‘(B) the amount of the reduction under of Representatives, or any committee of con- ‘‘(ii) when deferred compensation is paid, section 32(h) with respect to such taxpayer ference, and no amount shall be treated as received by for such taxable year.’’. ‘‘(2) such legislation includes any provision the employee, or paid, until it is actually re- (2) Paragraph (3) of section 24(d) of the 1986 amending the Internal Revenue Code of 1986, ceived by the employee. Code (as redesignated by paragraph (1)) is the report for such legislation shall contain ‘‘(B) EXCEPTION.—Subparagraph (A) shall amended by striking ‘‘paragraph (3)’’ and in- a Tax Complexity Analysis unless the com- not apply to severance pay.’’. serting ‘‘paragraph (1)’’. mittee involved causes to have the Tax Com- (b) SICK LEAVE PAY TREATED LIKE VACA- (b) AMENDMENTS RELATED TO SECTION 101(b) plexity Analysis printed in the Congressional TION PAY.—Paragraph (5) of section 404(a) is OF 1997 ACT.— Record prior to the consideration of the leg- amended by inserting ‘‘or sick leave pay’’ (1) The subsection (m) of section 32 of the islation in the House of Representatives or after ‘‘vacation pay’’. 1986 Code added by section 101(b) of the 1997 the Senate (as the case may be). (c) EFFECTIVE DATE.— Act is amended to read as follows: ‘‘(b) LEGISLATION SUBJECT TO POINT OF (1) IN GENERAL.—The amendments made by ‘‘(n) SUPPLEMENTAL CHILD CREDIT.— ORDER.—It shall not be in order in the Sen- this section shall apply to taxable years end- ‘‘(1) IN GENERAL.—In the case of a taxpayer ate to consider any bill or joint resolution ing after October 8, 1997. with respect to whom a credit is allowed described in subsection (a) required to be ac- (2) CHANGE IN METHOD OF ACCOUNTING.—In under section 24 for the taxable year, the companied by a Tax Complexity Analysis the case of any taxpayer required by this that does not contain a Tax Complexity credit otherwise allowable under this section section to change its method of accounting shall be increased by the lesser of— Analysis. for its first taxable year ending after October ‘‘(c) RESPONSIBILITIES OF THE COMMIS- ‘‘(A) the credit which would be allowed 8, 1997— SIONER.—The Commissioner shall provide the under section 24 without regard to this sub- Joint Committee on Taxation with such in- (A) such change shall be treated as initi- section and the limitation under section formation as is necessary to prepare Tax ated by the taxpayer, 26(a), or Complexity Analyses. (B) such change shall be treated as made ‘‘(B) the amount by which the aggregate ‘‘(d) TAX COMPLEXITY ANALYSIS DEFINED.— with the consent of the Secretary of the amount of credits allowed by subpart A For purposes of this section, the term ‘Tax Treasury, and (without regard to this subsection) would be Complexity Analysis’ means, with respect to (C) the net amount of the adjustments re- reduced if the limitation imposed by section a bill or joint resolution, a report which is quired to be taken into account by the tax- 26(a) were reduced by the excess (if any) of— prepared by the Joint Committee on Tax- payer under section 481 of the Internal Reve- ‘‘(i) the credit allowed by this section ation and which identifies the provisions of nue Code of 1986 shall be taken into account (without regard to this subsection) for the the legislation adding significant complexity in such first taxable year. taxable year, over or providing significant simplification (as TITLE VI—TAX TECHNICAL CORRECTIONS ‘‘(ii) the taxpayer’s social security taxes determined by the Joint Committee) and in- ACT OF 1997 (as defined in section 24(d)) for the taxable cludes the basis for such determination.’’. SEC. 601. SHORT TITLE. year. (2) CLERICAL AMENDMENT.—The table of This title may be cited as the ‘‘Tax Tech- The credit determined under this subsection sections for chapter 92 is amended by adding nical Corrections Act of 1997’’. shall be allowed without regard to any other at the end the following new item: SEC. 602. DEFINITIONS. provision of this section, including sub- ‘‘Sec. 8024. Tax complexity analysis.’’. For purposes of this title— section (d). S2324 CONGRESSIONAL RECORD — SENATE March 19, 1998

‘‘(2) COORDINATION WITH OTHER CREDITS.— ‘‘(8) DEEMED DISTRIBUTION ON REQUIRED DIS- SEC. 605. AMENDMENTS RELATED TO TITLE III ‘‘(A) IN GENERAL.—The amount of the cred- TRIBUTION DATE.—In any case in which a dis- OF 1997 ACT. it under this subsection shall reduce the tribution is required under subsection (a) AMENDMENTS RELATED TO SECTION 301 amount of the credit otherwise allowable (b)(1)(E), any balance to the credit of a des- OF 1997 ACT.—Section 219(g) of the 1986 Code under section 24, but the amount of the cred- ignated beneficiary as of the close of the 30- is amended— it under this subsection (and such reduction) day period referred to in such subsection for (1) by inserting ‘‘or the individual’s shall not otherwise be taken into account in making such distribution shall be deemed spouse’’ after ‘‘individual’’ in paragraph (1), determining the amount of any other credit distributed at the close of such period.’’. and allowable under this part. (2)(A) Paragraph (1) of section 530(d) of the (2) by striking paragraph (7) and inserting: ‘‘(B) TREATMENT OF CREDIT UNDER SECTION 1986 Code is amended by striking ‘‘section ‘‘(7) SPECIAL RULE FOR SPOUSES WHO ARE 24(d).—For purposes of this subsection, the 72(b)’’ and inserting ‘‘section 72’’. NOT ACTIVE PARTICIPANTS.—If this subsection credit determined under section 24(d) shall (B) Subsection (e) of section 72 of the 1986 applies to an individual for any taxable year be treated as not allowed under section 24.’’. Code is amended by inserting after para- solely because their spouse is an active par- SEC. 604. AMENDMENTS RELATED TO TITLE II OF graph (8) the following new paragraph: ticipant, then, in applying this subsection to 1997 ACT. ‘‘(9) EXTENSION OF PARAGRAPH (2)(B) TO the individual (but not their spouse)— (a) AMENDMENTS RELATED TO SECTION 201 QUALIFIED STATE TUITION PROGRAMS AND EDU- ‘‘(A) the applicable dollar amount under OF 1997 ACT.— CATIONAL INDIVIDUAL RETIREMENT AC- paragraph (3)(B)(i) shall be $150,000, and (1) The item relating to section 25A in the COUNTS.—Notwithstanding any other provi- table of sections for subpart A of part IV of ‘‘(B) the amount applicable under para- sion of this subsection, paragraph (2)(B) shall graph (2)(A)(ii) shall be $10,000.’’. subchapter A of chapter 1 of the 1986 Code is apply to amounts received under a qualified amended to read as follows: State tuition program (as defined in section (b) AMENDMENTS RELATED TO SECTION 302 ‘‘Sec. 25A. Hope and Lifetime Learning cred- 529(b)) or under an education individual re- OF 1997 ACT.— its.’’. tirement account (as defined in section (1) Section 408A(c)(3)(A) of the 1986 Code is 530(b)). The rule of paragraph (8)(B) shall amended by striking ‘‘shall be reduced’’ and (2) Subsection (a) of section 6050S of the apply for purposes of this paragraph.’’. inserting ‘‘shall not exceed an amount equal 1986 Code is amended to read as follows: (3) So much of section 530(d)(4)(C) of the to the amount determined under paragraph ‘‘(a) IN GENERAL.—Any person— (2)(A) for such taxable year, reduced’’. ‘‘(1) which is an eligible educational insti- 1986 Code as precedes clause (ii) thereof is amended to read as follows: (2) Section 408A(c)(3) of the 1986 Code (re- tution— lating to limits based on modified adjusted ‘‘(A) which receives payments for qualified ‘‘(C) CONTRIBUTIONS RETURNED BEFORE DUE DATE OF RETURN.—Subparagraph (A) shall gross income) is amended— tuition and related expenses with respect to (A) by inserting ‘‘or a married individual any individual for any calendar year, or not apply to the distribution of any con- tribution made during a taxable year on be- filing a separate return’’ after ‘‘joint return’’ ‘‘(B) which makes reimbursements or re- in subparagraph (A)(ii), and funds (or similar amounts) to any individual half of the designated beneficiary if— ‘‘(i) such distribution is made on or before (B) by striking ‘‘and the deduction under of qualified tuition and related expenses, section 219 shall be taken into account’’ in ‘‘(2) which is engaged in a trade or business the day prescribed by law (including exten- sions of time) for filing the beneficiary’s re- subparagraph (C)(i). of making payments to any individual under (3) Section 408A(d)(2) of the 1986 Code (de- an insurance arrangement as reimburse- turn of tax for the taxable year or, if the beneficiary is not required to file such a re- fining qualified distribution) is amended by ments or refunds (or similar amounts) of striking subparagraph (B) and inserting the qualified tuition and related expenses, or turn, the 15th day of the 4th month of the taxable year following the taxable year, following: ‘‘(3) except as provided in regulations, any ‘‘(B) DISTRIBUTIONS WITHIN NONEXCLUSION person which is engaged in a trade or busi- and’’. (4) Subparagraph (C) of section 135(c)(2) of PERIOD.—A payment or distribution from a ness and, in the course of which, receives Roth IRA shall not be treated as a qualified from any individual interest aggregating $600 the 1986 Code is amended— (A) by inserting ‘‘AND EDUCATION INDIVID- distribution under subparagraph (A) if such or more for any calendar year on 1 or more payment or distribution is made before the qualified education loans, UAL RETIREMENT ACCOUNTS’’ in the heading after ‘‘PROGRAM’’, and exclusion date for the Roth IRA. shall make the return described in sub- (B) by striking ‘‘section 529(c)(3)(A)’’ and ‘‘(C) EXCLUSION DATE.—For purposes of this section (b) with respect to the individual at inserting ‘‘section 72’’. section, the exclusion date for any Roth IRA such time as the Secretary may by regula- (5) Subparagraph (A) of section 4973(e)(1) of is the first day of the taxable year imme- tions prescribe.’’. the 1986 Code is amended by inserting before diately following the 5-taxable year period (3) Subparagraph (A) of section 201(c)(2) of the comma ‘‘(or, if less, the sum of the maxi- beginning with— the 1997 Act is amended to read as follows: mum amounts permitted to be contributed ‘‘(i) the first taxable year for which a con- ‘‘(A) Subparagraph (B) of section 6724(d)(1) under section 530(c) by the contributors to tribution to any Roth IRA maintained for (relating to definitions) is amended by redes- such accounts for such year)’’. the benefit of the individual was made, or ignating clauses (x) through (xv) as clauses ‘‘(ii) in the case of a Roth IRA to which 1 (xi) through (xvi), respectively, and by in- (d) AMENDMENT RELATED TO SECTION 224 OF or more qualified rollover contributions were serting after clause (ix) the following new 1997 ACT.—Section 170(e)(6)(F) of the 1986 made— clause: Code (relating to termination) is amended by ‘‘(I) from an individual retirement plan ‘‘ ‘(x) section 6050S (relating to returns re- striking ‘‘1999’’ and inserting ‘‘2000’’. other than a Roth IRA, or lating to payments for qualified tuition and (e) AMENDMENTS RELATED TO SECTION 225 ‘‘(II) from another Roth IRA to the extent related expenses),’ ’’. OF 1997 ACT.— such contributions are properly allocable to (b) AMENDMENTS RELATED TO SECTION 211 (1) The last sentence of section 108(f)(2) of contributions described in subclause (I), OF 1997 ACT.— the 1986 Code is amended to read as follows: (1) Paragraph (3) of section 135(c) of the the most recent taxable year for which any ‘‘The term ‘student loan’ includes any loan 1986 Code is amended to read as follows: such qualified rollover contribution was made by an educational organization de- made.’’. ‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.— scribed in section 170(b)(1)(A)(ii) or by an or- The term ‘eligible educational institution’ (4) Section 408A(d)(3) of the 1986 Code (re- ganization exempt from tax under section has the meaning given such term by section lating to rollovers from IRAs other than 501(a) to refinance a loan to an individual to 529(e)(5).’’. Roth IRAs) is amended by adding at the end assist the individual in attending any such (2) Subparagraph (A) of section 529(c)(3) of the following: educational organization but only if the refi- the 1986 Code is amended by striking ‘‘sec- ‘‘(F) SPECIAL RULE FOR APPLYING SECTION nancing loan is pursuant to a program of the tion 72(b)’’ and inserting ‘‘section 72’’. 72.— refinancing organization which is designed (c) AMENDMENTS RELATED TO SECTION 213 ‘‘(i) IN GENERAL.—If— as described in subparagraph (D)(ii).’’. OF 1997 ACT.— ‘‘(I) any distribution from a Roth IRA is (1)(A) Section 530(b)(1)(E) of the 1986 Code (2) Section 108(f)(3) of the 1986 Code is made before the exclusion date, and (defining education individual retirement ac- amended by striking ‘‘(or by an organization ‘‘(II) any portion of such distribution is count) is amended to read as follows: described in paragraph (2)(E) from funds pro- properly allocable to a qualified rollover ‘‘(E) Any balance to the credit of the des- vided by an organization described in para- contribution described in paragraph ignated beneficiary on the date on which the graph (2)(D))’’. (2)(C)(ii), beneficiary attains age 30 shall be distrib- (f) AMENDMENTS RELATED TO SECTION 226 OF then section 72(t) shall be applied as if such uted within 30 days after such date to the 1997 ACT.— portion were includible in gross income. beneficiary or, if the beneficiary dies before (1) Section 226(a) of the 1997 Act is amend- ‘‘(ii) LIMITATION.—Clause (i) shall apply attaining age 30, shall be distributed within ed by striking ‘‘section 1397E’’ and inserting only to the extent of the amount includible 30 days after the date of death to the estate ‘‘section 1397D’’. in gross income under subparagraph (A)(i) by of such beneficiary.’’. (2) Section 1397E(d)(4)(B) of the 1986 Code is reason of the qualified rollover contribution. (B) Subsection (d) of section 530 of the 1986 amended by striking ‘‘local education agen- ‘‘(G) SPECIAL RULES FOR CONTRIBUTIONS TO Code is amended by adding at the end the cy as defined’’ and inserting ‘‘local edu- WHICH 4-YEAR AVERAGING APPLIES.—In the following new paragraph: cational agency as defined’’. case of a qualified rollover contribution to a March 19, 1998 CONGRESSIONAL RECORD — SENATE S2325

Roth IRA of a distribution to which subpara- ‘‘(A) IN GENERAL.—Except as provided by ‘‘(i) the amount of taxable income which graph (A)(iii) applied, the following rules the Secretary, if, on or before the due date would (without regard to this paragraph) be shall apply: for any taxable year, a taxpayer transfers in taxed at a rate below 28 percent, over ‘‘(i) DEATH OF DISTRIBUTEE.— a trustee-to-trustee transfer any contribu- ‘‘(ii) the taxable income reduced by the ad- ‘‘(I) IN GENERAL.—If the individual required tion to an individual retirement plan made justed net capital gain, to include amounts in gross income under during such taxable year from such plan to ‘‘(C) 20 percent of the adjusted net capital such subparagraph dies before all of such any other individual retirement plan, then, gain (or, if less, taxable income) in excess of amounts are included, all remaining for purposes of this chapter, such contribu- the amount on which a tax is determined amounts shall be included in gross income tion shall be treated as having been made to under subparagraph (B), for the taxable year which includes the date the transferee plan (and not the transferor ‘‘(D) 25 percent of the excess (if any) of— of death. plan). ‘‘(i) the unrecaptured section 1250 gain (or, ‘‘(II) SPECIAL RULE FOR SURVIVING ‘‘(B) SPECIAL RULES.— if less, the net capital gain), over SPOUSE.—If the spouse of the individual de- ‘‘(i) TRANSFER OF EARNINGS.—Subparagraph ‘‘(ii) the excess (if any) of— scribed in subclause (I) acquires the Roth (A) shall not apply to the transfer of any ‘‘(I) the sum of the amount on which tax is IRA to which such qualified rollover con- contribution unless such transfer is accom- determined under subparagraph (A) plus the tribution is properly allocable, the spouse panied by any net income allocable to such net capital gain, over may elect to include the remaining amounts contribution. ‘‘(II) taxable income, and described in subclause (I) in the spouse’s ‘‘(ii) NO DEDUCTION.—Subparagraph (A) ‘‘(E) 28 percent of the amount of taxable gross income in the taxable years of the shall apply to the transfer of any contribu- income in excess of the sum of the amounts spouse ending with or within the taxable tion only to the extent no deduction was al- on which tax is determined under the preced- years of such individual in which such lowed with respect to the contribution to the ing subparagraphs of this paragraph. amounts would otherwise have been includ- transferor plan. ‘‘(2) REDUCED CAPITAL GAIN RATES FOR ible. ‘‘(C) DUE DATE.—For purposes of this para- QUALIFIED 5-YEAR GAIN.— ‘‘(ii) ADDITIONAL TAX FOR EARLY DISTRIBU- graph, the due date for any taxable year is ‘‘(A) REDUCTION IN 10-PERCENT RATE.—In the TION.— the last date for filing the return of tax for case of any taxable year beginning after De- ‘‘(I) IN GENERAL.—If any distribution from such taxable year (including extensions).’’. cember 31, 2000, the rate under paragraph a Roth IRA is made before the exclusion (B) Section 408A(d)(3) of the 1986 Code, as (1)(B) shall be 8 percent with respect to so date, and any portion of such distribution is amended by this subsection, is amended by much of the amount to which the 10-percent properly allocable to such qualified rollover striking subparagraph (D) and by redesignat- rate would otherwise apply as does not ex- contribution, the distributee’s tax under this ing subparagraphs (E), (F), and (G) as sub- ceed qualified 5-year gain, and 10 percent chapter for the taxable year in which the paragraphs (D), (E), and (F), respectively. with respect to the remainder of such amount is received shall be increased by 10 (7) Section 302(b) of the 1997 Act is amend- amount. percent of the amount of such portion not in ed by striking ‘‘Section 4973(b)’’ and insert- ‘‘(B) REDUCTION IN 20-PERCENT RATE.—The excess of the amount includible in gross in- ing ‘‘Section 4973’’. rate under paragraph (1)(C) shall be 18 per- come under subparagraph (A)(i) by reason of (8) Section 408A of the 1986 Code is amend- cent with respect to so much of the amount such qualified rollover contribution. ed by adding at the end the following new to which the 20-percent rate would otherwise ‘‘(II) TREATMENT OF TAX.—For purposes of subsection: apply as does not exceed the lesser of— this title, any tax imposed by subclause (I) ‘‘(f) INDIVIDUAL RETIREMENT PLAN.—For ‘‘(i) the excess of qualified 5-year gain over shall be treated as a tax imposed by section purposes of this section, except as provided the amount of such gain taken into account 72(t) and shall be in addition to any other by the Secretary, the term ‘individual retire- under subparagraph (A) of this paragraph, or tax imposed by such section.’’. ment plan’ shall not include a simplified em- ‘‘(ii) the amount of qualified 5-year gain (5)(A) Section 408A(d)(4) of the 1986 Code is ployee pension or a simple retirement ac- (determined by taking into account only amended to read as follows: count.’’. property the holding period for which begins ‘‘(4) AGGREGATION AND ORDERING RULES.— (c) AMENDMENTS RELATED TO SECTION 303 after December 31, 2000), ‘‘(A) AGGREGATION RULES.—Section OF 1997 ACT.— 408(d)(2) shall be applied separately with re- (1) Section 72(t)(8)(E) of the 1986 Code is and 20 percent with respect to the remainder spect to— amended— of such amount. For purposes of determining ‘‘(i) Roth IRAs and other individual retire- (A) by striking ‘‘120 days’’ and inserting under the preceding sentence whether the ment plans, ‘‘120th day’’, and holding period of property begins after De- ‘‘(ii) Roth IRAs described in paragraph (B) by striking ‘‘60 days’’ and inserting cember 31, 2000, the holding period of prop- (2)(C)(ii) and Roth IRAs not so described, and ‘‘60th day’’. erty acquired pursuant to the exercise of an ‘‘(iii) Roth IRAs described in paragraph (2)(A) Section 402(c) of the 1986 Code is option (or other right or obligation to ac- (2)(C)(ii) with different exclusion dates. amended by adding at the end the following: quire property) shall include the period such ‘‘(B) ORDERING RULES.—For purposes of ap- ‘‘(11) DENIAL OF ROLLOVER TREATMENT FOR option (or other right or obligation) was plying section 72 to any distribution from a TRANSFERS OF HARDSHIP DISTRIBUTIONS TO IN- held. Roth IRA which is not a qualified distribu- DIVIDUAL RETIREMENT PLANS.—This sub- ‘‘(3) NET CAPITAL GAIN TAKEN INTO ACCOUNT tion, such distribution shall be treated as section shall not apply to the transfer of any AS INVESTMENT INCOME.—For purposes of this made— hardship distribution described in section subsection, the net capital gain for any tax- ‘‘(i) from contributions to the extent that 401(k)(2)(B)(i)(IV) from a qualified cash or de- able year shall be reduced (but not below the amount of such distribution, when added ferred arrangement to an eligible retirement zero) by the amount which the taxpayer to all previous distributions from the Roth plan described in clause (i) or (ii) of para- takes into account as investment income IRA, does not exceed the aggregate contribu- graph (8)(B).’’. under section 163(d)(4)(B)(iii). tions to the Roth IRA, and (B) The amendment made by this para- ‘‘(4) ADJUSTED NET CAPITAL GAIN.—For pur- ‘‘(ii) from such contributions in the follow- graph shall apply to distributions made after poses of this subsection, the term ‘adjusted ing order: December 31, 1997. net capital gain’ means net capital gain re- ‘‘(I) Qualified rollover contributions to the (d) AMENDMENTS RELATED TO SECTION 311 duced (but not below zero) by the sum of— extent includible in gross income in the OF 1997 ACT.— ‘‘(A) unrecaptured section 1250 gain, and manner described in paragraph (3)(A)(iii). (1) Subsection (h) of section 1 of the 1986 ‘‘(B) 28 percent rate gain. ‘‘(II) Qualified rollover contributions not Code (relating to maximum capital gains ‘‘(5) 28 PERCENT RATE GAIN.—For purposes described in subclause (I) to the extent in- rate) is amended to read as follows: of this subsection— cludible in gross income under paragraph ‘‘(h) MAXIMUM CAPITAL GAINS RATE.— ‘‘(A) IN GENERAL.—The term ‘28 percent (3)(A). ‘‘(1) IN GENERAL.—If a taxpayer has a net rate gain’ means the excess (if any) of— ‘‘(III) Contributions not described in sub- capital gain for any taxable year, the tax im- ‘‘(i) the sum of— clause (I) or (II). posed by this section for such taxable year ‘‘(I) the aggregate long-term capital gain Such rules shall also apply in determining shall not exceed the sum of— from property held for more than 1 year but the character of qualified rollover contribu- ‘‘(A) a tax computed at the rates and in the not more than 18 months, tions from one Roth IRA to another Roth same manner as if this subsection had not ‘‘(II) collectibles gain, and IRA.’’. been enacted on the greater of— ‘‘(III) section 1202 gain, over (B) Section 408A(d)(1) of the 1986 Code is ‘‘(i) taxable income reduced by the net cap- ‘‘(ii) the sum of— amended to read as follows: ital gain, or ‘‘(I) the aggregate long-term capital loss ‘‘(1) EXCLUSION.—Any qualified distribu- ‘‘(ii) the lesser of— (not described in subclause (IV)) from prop- tion from a Roth IRA shall not be includible ‘‘(I) the amount of taxable income taxed at erty referred to in clause (i)(I), in gross income.’’. a rate below 28 percent, or ‘‘(II) collectibles loss, (6)(A) Section 408A(d) of the 1986 Code (re- ‘‘(II) taxable income reduced by the ad- ‘‘(III) the net short-term capital loss, and lating to distribution rules) is amended by justed net capital gain, ‘‘(IV) the amount of long-term capital loss adding at the end the following: ‘‘(B) 10 percent of so much of the adjusted carried under section 1212(b)(1)(B) to the tax- ‘‘(6) TAXPAYER MAY MAKE ADJUSTMENTS BE- net capital gain (or, if less, taxable income) able year. FORE DUE DATE.— as does not exceed the excess (if any) of— ‘‘(B) SPECIAL RULES.— S2326 CONGRESSIONAL RECORD — SENATE March 19, 1998

‘‘(i) SHORT SALES AND OPTIONS.—Rules simi- ‘‘(12) PASS-THRU ENTITY DEFINED.—For pur- on which tax is determined under the preced- lar to the rules of subsections (b) and (d) of poses of this subsection, the term ‘pass-thru ing subparagraphs of this paragraph. section 1233 shall apply to substantially entity’ means— In the case of taxable years beginning after identical property, and section 1092(f) with ‘‘(A) a regulated investment company, December 31, 2000, rules similar to the rules respect to stock, held for more than 1 year ‘‘(B) a real estate investment trust, of section 1(h)(2) shall apply for purposes of but not more than 18 months. ‘‘(C) an S corporation, subparagraphs (B) and (C). Terms used in ‘‘(ii) SECTION 1256 CONTRACTS.—Amounts ‘‘(D) a partnership, this paragraph which are also used in section treated as long-term capital gain or loss ‘‘(E) an estate or trust, 1(h) shall have the respective meanings given under section 1256(a)(3) shall be treated as ‘‘(F) a common trust fund, such terms by section 1(h) but computed attributable to property held for more than ‘‘(G) a foreign investment company which with the adjustments under this part.’’. 18 months. is described in section 1246(b)(1) and for (3) Section 57(a)(7) of the 1986 Code is ‘‘(6) COLLECTIBLES GAIN AND LOSS.—For which an election is in effect under section amended by adding at the end the following purposes of this subsection— 1247, and new sentence: ‘‘In the case of stock the hold- ‘‘(A) IN GENERAL.—The terms ‘collectibles ‘‘(H) a qualified electing fund (as defined in ing period of which begins after December 31, gain’ and ‘collectibles loss’ mean gain or loss section 1295). 2000 (determined with the application of the (respectively) from the sale or exchange of a ‘‘(13) SPECIAL RULES FOR PERIODS DURING last sentence of section 1(h)(2)(B)), the pre- collectible (as defined in section 408(m) with- 1997.— ceding sentence shall be applied by sub- out regard to paragraph (3) thereof) which is ‘‘(A) DETERMINATION OF 28 PERCENT RATE stituting ‘28 percent’ for ‘42 percent’.’’. a capital asset held for more than 18 months GAIN.—In applying paragraph (5)— (4) Paragraphs (11) and (12) of section 1223, but only to the extent such gain is taken ‘‘(i) the amount determined under sub- and section 1235(a), of the 1986 Code are each into account in computing gross income and clause (I) of paragraph (5)(A)(i) shall include amended by striking ‘‘1 year’’ each place it such loss is taken into account in computing long-term capital gain (not otherwise de- appears and inserting ‘‘18 months’’. taxable income. scribed in paragraph (5)(A)(i)) which is prop- ‘‘(B) PARTNERSHIPS, ETC.—For purposes of (e) AMENDMENTS RELATED TO SECTION 312 erly taken into account for the portion of subparagraph (A), any gain from the sale of OF 1997 ACT.— the taxable year before May 7, 1997, an interest in a partnership, S corporation, (1) Section 121(c)(1) of the 1986 Code is or trust which is attributable to unrealized ‘‘(ii) the amounts determined under sub- amended to read as follows: appreciation in the value of collectibles shall clause (I) of paragraph (5)(A)(ii) shall include ‘‘(1) IN GENERAL.—In the case of a sale or be treated as gain from the sale or exchange long-term capital loss (not otherwise de- exchange to which this subsection applies, of a collectible. Rules similar to the rules of scribed in paragraph (5)(A)(ii)) which is prop- the ownership and use requirements of sub- section 751 shall apply for purposes of the erly taken into account for the portion of section (a), and subsection (b)(3), shall not preceding sentence. the taxable year before May 7, 1997, and apply; but the dollar limitation under para- ‘‘(7) UNRECAPTURED SECTION 1250 GAIN.—For ‘‘(iii) clauses (i)(I) and (ii)(I) of paragraph graph (1) or (2) of subsection (b), whichever is purposes of this subsection— (5)(A) shall be applied by not taking into ac- applicable, shall be equal to— ‘‘(A) IN GENERAL.—The term ‘unrecaptured count any gain and loss on property held for ‘‘(A) the amount which bears the same section 1250 gain’ means the excess (if any) more than 1 year but not more than 18 ratio to such limitation (determined without of— months which is properly taken into account regard to this paragraph) as ‘‘(i) the amount of long-term capital gain for the portion of the taxable year after May ‘‘(B)(i) the shorter of— (not otherwise treated as ordinary income) 6, 1997, and before July 29, 1997. ‘‘(I) the aggregate periods, during the 5- which would be treated as ordinary income ‘‘(B) OTHER SPECIAL RULES.— year period ending on the date of such sale if— ‘‘(i) DETERMINATION OF UNRECAPTURED SEC- or exchange, such property has been owned ‘‘(I) section 1250(b)(1) included all deprecia- TION 1250 GAIN NOT TO INCLUDE PRE-MAY 7, 1997 and used by the taxpayer as the taxpayer’s tion and the applicable percentage under sec- GAIN.—The amount determined under para- principal residence, or tion 1250(a) were 100 percent, and graph (7)(A)(i) shall not include gain prop- ‘‘(II) the period after the date of the most ‘‘(II) only gain from property held for more erly taken into account for the portion of recent prior sale or exchange by the tax- than 18 months were taken into account, the taxable year before May 7, 1997. payer to which subsection (a) applied and be- over ‘‘(ii) OTHER TRANSITIONAL RULES FOR 18- fore the date of such sale or exchange, bears ‘‘(ii) the excess (if any) of— MONTH HOLDING PERIOD.—Paragraphs (6)(A) to ‘‘(I) the amount described in paragraph and (7)(A)(i)(II) shall be applied by substitut- ‘‘(ii) 2 years.’’. (5)(A)(ii), over ing ‘1 year’ for ‘18 months’ with respect to (2) Section 312(d)(2) of the 1997 Act (relat- ‘‘(II) the amount described in paragraph gain properly taken into account for the por- ing to sales before date of enactment) is (5)(A)(i). tion of the taxable year after May 6, 1997, amended by inserting ‘‘on or’’ before ‘‘be- ‘‘(B) LIMITATION WITH RESPECT TO SECTION and before July 29, 1997. fore’’ each place it appears in the text and 1231 PROPERTY.—The amount described in sub- ‘‘(C) SPECIAL RULES FOR PASS-THRU ENTI- heading. paragraph (A)(i) from sales, exchanges, and TIES.—In applying this paragraph with re- (f) AMENDMENT RELATED TO SECTION 313 OF conversions described in section 1231(a)(3)(A) spect to any pass-thru entity, the determina- 1997 ACT.—Section 1045 of the 1986 Code is for any taxable year shall not exceed the net tion of when gains and loss are properly amended by adding at the end the following section 1231 gain (as defined in section taken into account shall be made at the en- new subsection: tity level.’’. 1231(c)(3)) for such year. ‘‘(c) LIMITATION ON APPLICATION TO PART- ECTION 1202 GAIN (2) IN GENERAL.—Paragraph (3) of section ‘‘(8) S .—For purposes of this NERSHIPS AND S CORPORATIONS.—Subsection subsection, the term ‘section 1202 gain’ 55(b) of the 1986 Code is amended to read as (a) shall apply to a partnership or S corpora- means an amount equal to the gain excluded follows: tion for a taxable year only if at all times from gross income under section 1202(a). ‘‘(3) MAXIMUM RATE OF TAX ON NET CAPITAL during such taxable year all of the partners ‘‘(9) QUALIFIED 5-YEAR GAIN.—For purposes GAIN OF NONCORPORATE TAXPAYERS.—The in the partnership, or all of the shareholders of this subsection, the term ‘qualified 5-year amount determined under the first sentence of the S corporation, are natural persons or gain’ means the amount of long-term capital of paragraph (1)(A)(i) shall not exceed the estates.’’. gain which would be computed for the tax- sum of— able year if only gains from the sale or ex- ‘‘(A) the amount determined under such SEC. 606. AMENDMENTS RELATED TO TITLE V OF change of property held by the taxpayer for first sentence computed at the rates and in 1997 ACT. more than 5 years were taken into account. the same manner as if this paragraph had (a) AMENDMENTS RELATED TO SECTION 501 The determination under the preceding sen- not been enacted on the taxable excess re- OF 1997 ACT.— tence shall be made without regard to col- duced by the lesser of— (1) Subsection (c) of section 2631 of the 1986 lectibles gain, gain described in paragraph ‘‘(i) the net capital gain, or Code is amended by striking ‘‘an individual (7)(A)(i), and section 1202 gain. ‘‘(ii) the sum of— who dies’’ and inserting ‘‘a generation-skip- ‘‘(10) COORDINATION WITH RECAPTURE OF NET ‘‘(I) the adjusted net capital gain, plus ping transfer’’. ORDINARY LOSSES UNDER SECTION 1231.—If any ‘‘(II) the unrecaptured section 1250 gain, (2) Subsection (f) of section 501 of the 1997 amount is treated as ordinary income under plus Act is amended by inserting ‘‘(other than the section 1231(c), such amount shall be allo- ‘‘(B) 10 percent of so much of the adjusted amendment made by subsection (d))’’ after cated among the separate categories of net net capital gain (or, if less, taxable excess) ‘‘this section’’. section 1231 gain (as defined in section as does not exceed the amount on which a (b) AMENDMENTS RELATED TO SECTION 502 1231(c)(3)) in such manner as the Secretary tax is determined under section 1(h)(1)(B), OF 1997 ACT.— may by forms or regulations prescribe. plus (1) Subsection (a) of section 2033A of the ‘‘(11) REGULATIONS.—The Secretary may ‘‘(C) 20 percent of the adjusted net capital 1986 Code is amended to read as follows: prescribe such regulations as are appropriate gain (or, if less, taxable excess) in excess of ‘‘(a) EXCLUSION.— (including regulations requiring reporting) the amount on which tax is determined ‘‘(1) IN GENERAL.—In the case of an estate to apply this subsection in the case of sales under subparagraph (B), plus of a decedent to which this section applies, and exchanges by pass-thru entities and of ‘‘(D) 25 percent of the amount of taxable the value of the gross estate shall not in- interests in such entities. excess in excess of the sum of the amounts clude the lesser of— March 19, 1998 CONGRESSIONAL RECORD — SENATE S2327 ‘‘(A) the adjusted value of the qualified (1) Section 1400B(d)(2) of the 1986 Code is SEC. 609. AMENDMENTS RELATED TO TITLE X OF family-owned business interests of the dece- amended by inserting ‘‘as determined on the 1997 ACT. dent otherwise includible in the estate, or basis of the 1990 census’’ after ‘‘percent’’. (a) AMENDMENTS RELATED TO SECTION 1001 ‘‘(B) the exclusion limitation with respect (2) Section 1400B(b) of the 1986 Code is OF 1997 ACT.— to such estate. amended by redesignating paragraphs (6) and (1) Paragraph (2) of section 1259(b) of the ‘‘(2) EXCLUSION LIMITATION.— (7) as paragraphs (5) and (6), respectively. 1986 Code is amended— ‘‘(A) IN GENERAL.—The exclusion limita- (c) AMENDMENTS RELATED TO SECTION 1400C (A) by striking ‘‘debt’’ each place it ap- tion with respect to any estate is the amount OF 1986 CODE.— pears in clauses (i) and (ii) of subparagraph of reduction in the tentative tax base with (1) Paragraph (1) of section 1400C(c) of the (A) and inserting ‘‘position’’, respect to such estate which would be re- 1986 Code is amended to read as follows: (B) by striking ‘‘and’’ at the end of sub- quired in order to reduce the tax imposed by ‘‘(1) IN GENERAL.—The term ‘first-time paragraph (A), and section 2001(b) (determined without regard to homebuyer’ means any individual if such in- (C) by redesignating subparagraph (B) as this section) by an amount equal to the max- dividual (and if married, such individual’s subparagraph (C) and by inserting after sub- imum credit equivalent benefit. spouse) had no present ownership interest in paragraph (A) the following new subpara- ‘‘(B) MAXIMUM CREDIT EQUIVALENT BENE- a principal residence in the District of Co- graph: FIT.—For purposes of subparagraph (A), the lumbia during the 1-year period ending on ‘‘(B) any hedge with respect to a position term ‘maximum credit equivalent benefit’ the date of the purchase of the principal resi- described in subparagraph (A), and’’. means the excess of— dence to which this section applies.’’. (2) Section 1259(d)(1) of the 1986 Code is ‘‘(i) the amount by which the tentative tax (2) Subparagraph (B) of section 1400C(e)(2) amended by inserting ‘‘(including cash)’’ imposed by section 2001(b) (determined with- of the 1986 Code is amended by inserting be- after ‘‘property’’. out regard to this section) would be reduced fore the period ‘‘on the date the taxpayer (3) Subparagraph (D) of section 475(f)(1) of if the tentative tax base were reduced by first occupies such residence’’. the 1986 Code is amended by adding at the $675,000, over (3) Paragraph (3) of section 1400C(e) of the end the following new sentence: ‘‘Subsection ‘‘(ii) the amount by which the applicable 1986 Code is amended by striking all that fol- (d)(3) shall not apply under the preceding credit amount under section 2010(c) with re- lows ‘‘principal residence’’ and inserting ‘‘on sentence for purposes of applying sections spect to such estate exceeds such applicable the date such residence is purchased.’’. 1402 and 7704.’’. credit amount in effect for 1998. (4) Subsection (i) of section 1400C of the (4) Subparagraph (C) of section 1001(d)(3) of ‘‘(C) TENTATIVE TAX BASE.—For purposes of 1986 Code is amended to read as follows: the 1997 Act is amended by striking ‘‘within ‘‘(i) APPLICATION OF SECTION.—This section this paragraph, the term ‘tentative tax base’ the 30-day period beginning on’’ and insert- shall apply to property purchased after Au- means the amount with respect to which the ing ‘‘before the close of the 30th day after’’. tax imposed by section 2001(b) would be com- gust 4, 1997, and before January 1, 2001.’’. puted without regard to this section.’’. (5) Subsection (c) of section 23 of the 1986 (b) AMENDMENTS RELATED TO SECTION 1012 (2) Section 2033A(b)(3) of the 1986 Code is Code is amended by inserting ‘‘and section OF 1997 Act.— amended to read as follows: 1400C’’ after ‘‘other than this section’’. (1) Paragraph (1) of section 1012(d) of the 1997 Act is amended by striking ‘‘1997, pursu- ‘‘(3) INCLUDIBLE GIFTS OF INTERESTS.—The (6) Subparagraph (C) of section 25(e)(1) of amount of the gifts of qualified family- the 1986 Code is amended by striking ‘‘sec- ant’’ and inserting ‘‘1997; except that the owned business interests determined under tion 23’’ and inserting ‘‘sections 23 and amendment made by subsection (a) shall this paragraph is the sum of— 1400C’’. apply to such distributions only if pursu- ‘‘(A) the amount of such gifts from the de- SEC. 608. AMENDMENTS RELATED TO TITLE IX OF ant’’. cedent to members of the decedent’s family 1997 ACT. (2) Subparagraph (A) of section 355(e)(3) of taken into account under section (a) AMENDMENT RELATED TO SECTION 901 OF the 1986 Code is amended— 2001(b)(1)(B), plus 1997 ACT.—Section 9503(c)(7) of the 1986 Code (A) by striking ‘‘shall not be treated as de- ‘‘(B) the amount of such gifts otherwise ex- is amended— scribed in’’ and inserting ‘‘shall not be taken cluded under section 2503(b), (1) by striking ‘‘resulting from the amend- into account in applying’’, and ments made by’’ and inserting ‘‘(and trans- (B) by striking clause (iv) and inserting the to the extent such interests are continuously fers to the Mass Transit Account) resulting following new clause: held by members of such family (other than from the amendments made by subsections ‘‘(iv) The acquisition of stock in the dis- the decedent’s spouse) between the date of (a) and (b) of section 901 of’’, and tributing corporation or any controlled cor- the gift and the date of the decedent’s (2) by inserting before the period ‘‘and de- poration to the extent that the percentage of death.’’. posits in the Highway Trust Fund (and trans- stock owned directly or indirectly in such (c) AMENDMENTS RELATED TO SECTION 503 fers to the Mass Transit Account) shall be corporation by each person owning stock in OF THE 1997 ACT.— treated as made when they would have been such corporation immediately before the ac- (1) Clause (iii) of section 6166(b)(7)(A) of the required to be made without regard to sec- quisition does not decrease.’’. 1986 Code is amended to read as follows: tion 901(e) of the Taxpayer Relief Act of (c) AMENDMENTS RELATED TO SECTION 1014 ‘‘(iii) for purposes of applying section 1997’’. OF 1997 ACT.— 6601(j), the 2-percent portion (as defined in (b) AMENDMENT RELATED TO SECTION 907 OF (1) Paragraph (1) of section 351(g) of the such section) shall be treated as being zero.’’. 1997 ACT.—Paragraph (2) of section 9503(e) of 1986 Code is amended by adding ‘‘and’’ at the (2) Clause (iii) of section 6166(b)(8)(A) of the the 1986 Code is amended by striking the last end of subparagraph (A) and by striking sub- 1986 Code is amended to read as follows: sentence and inserting the following new paragraphs (B) and (C) and inserting the fol- ‘‘(iii) 2-PERCENT INTEREST RATE NOT TO sentence: ‘‘For purposes of the preceding sen- lowing new subparagraph: APPLY.—For purposes of applying section tence, the term ‘mass transit portion’ ‘‘(B) if (and only if) the transferor receives 6601(j), the 2-percent portion (as defined in means, for any fuel with respect to which tax stock other than nonqualified preferred such section) shall be treated as being zero.’’. was imposed under section 4041 or 4081 and stock— otherwise deposited into the Highway Trust (d) AMENDMENT RELATED TO SECTION 505 OF ‘‘(i) subsection (b) shall apply to such Fund, the amount determined at the rate THE 1997 ACT.—Paragraphs (1) and (2) of sec- transferor, and of— tion 7479(a) of the 1986 Code are each amend- ‘‘(ii) such nonqualified preferred stock ‘‘(A) except as otherwise provided in this ed by striking ‘‘an estate,’’ and inserting ‘‘an shall be treated as other property for pur- sentence, 2.86 cents per gallon, estate (or with respect to any property in- poses of applying subsection (b).’’. ‘‘(B) 1.77 cents per gallon in the case of any cluded therein),’’. (2) Clause (ii) of section 354(a)(2)(C) of 1986 partially exempt methanol or ethanol fuel (e) AMENDMENTS RELATED TO SECTION 506 Code is amended by adding at the end the (as defined in section 4041(m)) none of the al- OF THE 1997 ACT.— following new subclause: cohol in which consists of ethanol, (1) Subsection (c) of section 2504 of the 1986 ‘‘(III) EXTENSION OF STATUTE OF LIMITA- ‘‘(C) 1.86 cents per gallon in the case of liq- Code is amended by striking ‘‘was assessed TIONS.—The statutory period for the assess- uefied natural gas, or paid’’ and inserting ‘‘was finally deter- ment of any deficiency attributable to a cor- ‘‘(D) 2.13 cents per gallon in the case of liq- mined for purposes of this chapter’’. poration failing to be a family-owned cor- uefied petroleum gas, and (2) Paragraph (1) of section 506(e) of the poration shall not expire before the expira- ‘‘(E) 9.71 cents per MCF (determined at 1997 Act is amended by striking ‘‘and (c)’’ tion of 3 years after the date the Secretary standard temperature and pressure) in the and inserting ‘‘, (c), and (d)’’. is notified by the corporation (in such man- case of compressed natural gas.’’. ner as the Secretary may prescribe) of such SEC. 607. AMENDMENTS RELATED TO TITLE VII (c) AMENDMENT RELATED TO SECTION 976 OF OF 1997 ACT. failure, and such deficiency may be assessed 1997 ACT.—Section 6103(d)(5) of the 1986 Code (a) AMENDMENT RELATED TO SECTION 1400 is amended by striking ‘‘section 967 of the before the expiration of such 3-year period OF 1986 CODE.—Section 1400(b)(2)(B) of the Taxpayer Relief Act of 1997.’’ and inserting notwithstanding the provisions of any other 1986 Code is amended by inserting ‘‘as deter- ‘‘section 976 of the Taxpayer Relief Act of law or rule of law which would otherwise mined on the basis of the 1990 census’’ after 1997. Subsections (a)(2) and (p)(4) and sec- prevent such assessment.’’. ‘‘percent’’. tions 7213 and 7213A shall not apply with re- (d) AMENDMENT RELATED TO SECTION 1024 (b) AMENDMENTS RELATED TO SECTION 1400B spect to disclosures or inspections made pur- OF 1997 ACT.—Section 6331(h)(1) of the 1986 OF 1986 CODE.— suant to this paragraph.’’. Code is amended by striking ‘‘The effect of a S2328 CONGRESSIONAL RECORD — SENATE March 19, 1998 levy’’ and inserting ‘‘If the Secretary ap- (2) by adding ‘‘or’’ at the end of clause (iii) (5) Section 1213(b) of the 1997 Act is amend- proves a levy under this subsection, the ef- of subparagraph (B), and ed by striking ‘‘section 6724(d)(1)(A)’’ and in- fect of such levy’’. (3) by striking all that follows subclause serting ‘‘section 6724(d)(1)’’. (e) AMENDMENTS RELATED TO SECTION 1031 (II) of subparagraph (B)(iv) and inserting the (c) AMENDMENT RELATED TO SECTION 1226 OF 1997 ACT.— following: OF 1997 ACT.—Section 1226 of the 1997 Act is (1) Subsection (l) of section 4041 of the 1986 ‘‘(III) other trades or businesses. amended by striking ‘‘ending on or’’ and in- Code is amended by striking ‘‘subsection (e) For purposes of clause (iv), there shall not be serting ‘‘beginning’’. or (f)’’ and inserting ‘‘subsection (f) or (g)’’. taken into account items which are attrib- (d) AMENDMENT RELATED TO SECTION 1285 (2) Subsection (b) of section 9502 of the 1986 utable to a trade or business which consists OF 1997 ACT.—Section 7430(b) of the 1986 Code Code is amended by moving the sentence of the performance of services by the tax- is amended by redesignating paragraph (5) as added at the end of paragraph (1) to the end payer as an employee. paragraph (4). of such subsection. ‘‘(C) CERTAIN AMOUNTS INCLUDED.—An SEC. 612. AMENDMENTS RELATED TO TITLE XIII (3) Subsection (c) of section 6421 of the 1986 amount is described in this subparagraph if OF 1997 ACT. Code is amended— it is— (a) Section 646 of the 1986 Code is redesig- (A) by striking ‘‘(2)(A)’’ and inserting ‘‘(i) interest received or accrued during the nated as section 645. ‘‘(2)’’, and (b) The item relating to section 646 in the taxable year which is exempt from tax im- (B) by adding at the end the following sen- table of sections for subpart A of part I of posed by this chapter, or tence: ‘‘Subsection (a) shall not apply to gas- subchapter J of chapter 1 of the 1986 Code is ‘‘(ii) amounts received as a pension or an- oline to which this subsection applies.’’. amended by striking ‘‘Sec. 646’’ and inserting nuity, and any distributions or payments re- (f) AMENDMENTS RELATED TO SECTION 1032 ‘‘Sec. 645’’. OF 1997 ACT.— ceived from an individual retirement plan, (c) Paragraph (1) of section 2652(b) of the (1) Section 1032(a) of the 1997 Act is amend- by the taxpayer during the taxable year to 1986 Code is amended by striking ‘‘section ed by striking ‘‘Subsection (a) of section the extent not included in gross income. 646’’ and inserting ‘‘section 645’’. 4083’’ and inserting ‘‘Paragraph (1) of section Clause (ii) shall not include any amount (d) Paragraph (3) of section 1(g) of the 1986 4083(a)’’. which is not includible in gross income by Code is amended by striking subparagraph (2) Section 1032(e)(12)(A) of the 1997 Act reason of section 402(c), 403(a)(4), 403(b), (C) and by redesignating subparagraph (D) as shall be applied as if ‘‘gasoline, diesel fuel,’’ 408(d) (3), (4), or (5), or 457(e)(10).’’. subparagraph (C). were the material proposed to be stricken. (k) AMENDMENT RELATED TO SECTION 1088 (e) Section 641 of the 1986 Code is amended (3) Paragraph (1) of section 4101(e) of the OF 1997 ACT.—Section 1088(b)(2)(C) of the 1997 by striking subsection (c) and by redesignat- 1986 Code is amended by striking ‘‘dyed die- Act is amended by inserting ‘‘more than 1 ing subsection (d) as subsection (c). sel fuel and kerosene’’ and inserting ‘‘such year’’ before ‘‘after’’. (f) Paragraph (4) of section 1361(e) of the fuel in a dyed form’’. (l) AMENDMENT RELATED TO SECTION 1089 OF 1986 Code is amended by striking ‘‘section (g) AMENDMENT RELATED TO SECTION 1055 1997 ACT.—Paragraphs (1)(C) and (2)(C) of sec- 641(d)’’ and inserting ‘‘section 641(c)’’. OF 1997 ACT.—Section 6611(g)(1) of the 1986 tion 664(d) of the 1986 Code are each amended (g) Subparagraph (A) of section 6103(e)(1) of Code is amended by striking ‘‘(e), and (h)’’ by adding ‘‘, and’’ at the end. the 1986 Code is amended by striking clause and inserting ‘‘and (e)’’. SEC. 610. AMENDMENTS RELATED TO TITLE XI OF (ii) and by redesignating clauses (iii) and (iv) (h) AMENDMENT RELATED TO SECTION 1083 1997 ACT. as clauses (ii) and (iii), respectively. OF 1997 ACT.—Section 1083(a)(2) of the 1997 (a) AMENDMENT RELATED TO SECTION 1103 SEC. 613. AMENDMENTS RELATED TO TITLE XIV Act is amended— OF 1997 ACT.—The paragraph (3) of section OF 1997 ACT. (1) by striking ‘‘21’’ and inserting ‘‘20’’, and 59(a) added by section 1103 of the 1997 Act is (a) AMENDMENT RELATED TO SECTION 1434 (2) by striking ‘‘22’’ and inserting ‘‘21’’. redesignated as paragraph (4). OF 1997 ACT.—Paragraph (2) of section 4052(f) (i) AMENDMENT RELATED TO SECTION 1084 OF (b) AMENDMENT RELATED TO SECTION 1121 of the 1986 Code is amended by striking ‘‘this 1997 ACT.— OF 1997 ACT.—Section 1298(a)(2)(B) of the 1986 section’’ and inserting ‘‘such section’’. (1) Paragraph (3) of section 264(a) of the Code is amended by adding at the end the (b) AMENDMENT RELATED TO SECTION 1436 1986 Code is amended by striking ‘‘subsection following new sentence: ‘‘Section 1297(e) OF 1997 ACT.—Paragraph (2) of section 4091(a) (c)’’ and inserting ‘‘subsection (d)’’. shall not apply in determining whether a of the 1986 Code is amended by inserting ‘‘or (2) Paragraph (4) of section 264(a) of the corporation is a passive foreign investment on which tax has been credited or refunded’’ 1986 Code is amended by striking ‘‘subsection company for purposes of this subpara- after ‘‘such paragraph’’. (d)’’ and inserting ‘‘subsection (e)’’. graph.’’. SEC. 614. AMENDMENTS RELATED TO TITLE XV (3) Paragraph (4) of section 264(f) of the 1986 (c) AMENDMENT RELATED TO SECTION 1122 OF 1997 ACT. Code is amended by adding at the end the OF 1997 ACT.—Section 672(f)(3)(B) of the 1986 (a) AMENDMENT RELATED TO SECTION 1501 following new subparagraph: Code is amended by striking ‘‘section 1296’’ OF 1997 ACT.—The paragraph (8) of section ‘‘(E) MASTER CONTRACTS.—If coverage for and inserting ‘‘section 1297’’. 408(p) of the 1986 Code added by section each insured under a master contract is (d) AMENDMENT RELATED TO SECTION 1123 1501(b) of the 1997 Act is redesignated as treated as a separate contract for purposes of OF 1997 ACT.—The subsection (e) of section paragraph (9). sections 817(h), 7702, and 7702A, coverage for 1297 of the 1986 Code added by section 1123 of (b) AMENDMENT RELATED TO SECTION 1505 each such insured shall be treated as a sepa- the 1997 Act is redesignated as subsection (f). OF 1997 ACT.—Section 1505(d)(2) of the 1997 rate contract for purposes of subparagraph (e) AMENDMENT RELATED TO SECTION 1144 Act is amended by striking ‘‘(b)(12)’’ and in- (A). For purposes of the preceding sentence, OF 1997 ACT.—Paragraphs (1) and (2) of sec- serting ‘‘(b)(12)(A)(i)’’. the term ‘master contract’ shall not include tion 1144(c) of the 1997 Act are each amended (c) AMENDMENT RELATED TO SECTION 1531 any group life insurance contract (as defined by striking ‘‘6038B(b)’’ and inserting OF 1997 ACT.—Subsection (f) of section 9811 of in section 848(e)(2)).’’. ‘‘6038B(c) (as redesignated by subsection the 1986 Code (as added by section 1531 of the (4)(A) Clause (iv) of section 264(f)(5)(A) of (b))’’. 1997 Act) is redesignated as subsection (e). the 1986 Code is amended by striking the sec- SEC. 611. AMENDMENTS RELATED TO TITLE XII ond sentence. OF 1997 ACT. SEC. 615. AMENDMENTS RELATED TO TITLE XVI. (B) Subparagraph (B) of section 6724(d)(1) of (a) AMENDMENT RELATED TO SECTION 1204 (a) AMENDMENTS RELATED TO SECTION the 1986 Code is amended by striking ‘‘or’’ at OF 1997 ACT.—The last sentence of section 1601(d) OF 1997 ACT.— the end of clause (xv), by striking the period 162(a) of the 1986 Code is amended by striking (1) AMENDMENTS RELATED TO SECTION at the end of clause (xvi) and inserting ‘‘, ‘‘investigate’’ and all that follows and insert- 1601(d)(1)— or’’, and by adding at the end the following ing ‘‘investigate or prosecute, or provide sup- (A) Section 408(p)(2)(D)(i) of the 1986 Code new clause: port services for the investigation or pros- is amended by striking ‘‘or (B)’’ in the last ‘‘(xvii) section 264(f)(5)(A)(iv) (relating to ecution of, a Federal crime.’’. sentence. reporting with respect to certain life insur- (b) AMENDMENTS RELATED TO SECTION 1205 (B) Section 408(p) of the 1986 Code is ance and annuity contracts).’’. OF 1997 ACT.— amended by adding at the end the following: (C) Paragraph (2) of section 6724(d) of the (1) Section 6311(e)(1) of the 1986 Code is ‘‘(10) SPECIAL RULES FOR ACQUISITIONS, DIS- 1986 Code is amended by striking ‘‘or’’ at the amended by striking ‘‘section 6103(k)(8)’’ and POSITIONS, AND SIMILAR TRANSACTIONS.— end of subparagraph (Y), by striking the pe- inserting ‘‘section 6103(k)(9)’’. ‘‘(A) IN GENERAL.—An employer which fails riod at the end of subparagraph (Z) and in- (2) Paragraph (8) of section 6103(k) of the to meet any applicable requirement by rea- serting ‘‘or’’, and by adding at the end the 1986 Code (as added by section 1205(c)(1) of son of an acquisition, disposition, or similar following new subparagraph: the 1997 Act) is redesignated as paragraph transaction shall not be treated as failing to ‘‘(AA) section 264(f)(5)(A)(iv) (relating to (9). meet such requirement during the transition reporting with respect to certain life insur- (3) The heading for section 7431(g) of the period if— ance and annuity contracts).’’. 1986 Code is amended by striking ‘‘(8)’’ and ‘‘(i) the employer satisfies requirements (j) AMENDMENT RELATED TO SECTION 1085 OF inserting ‘‘(9)’’. similar to the requirements of section 1997 ACT.—Paragraph (5) of section 32(c) of (4) Section 1205(c)(3) of the 1997 Act shall be 410(b)(6)(C)(i)(II), and the 1986 Code is amended— applied as if it read as follows: ‘‘(ii) the qualified salary reduction ar- (1) by inserting before the period at the end ‘‘(3) Section 6103(p)(3)(A), as amended by rangement maintained by the employer of subparagraph (A) ‘‘and increased by the section 1026(b)(1)(A), is amended by striking would satisfy the requirements of this sub- amounts described in subparagraph (C)’’, ‘‘or (8)’’ and inserting ‘‘(8), or (9)’’. section after the transaction if the employer March 19, 1998 CONGRESSIONAL RECORD — SENATE S2329 which maintained the arrangement before SEC. 619. MISCELLANEOUS CLERICAL AND DEAD- ‘‘PART N—STUDENT IMPROVEMENT the transaction had remained a separate em- WOOD CHANGES. INCENTIVE GRANT PROGRAM ployer. (a)(1) Section 6421 of the 1986 Code is ‘‘SEC. 10997. STUDENT IMPROVEMENT INCENTIVE ‘‘(B) APPLICABLE REQUIREMENT.—For pur- amended by redesignating subsections (j) and GRANT PROGRAM. poses of this paragraph, the term ‘applicable (k) as subsections (i) and (j), respectively. ‘‘(a) SHORT TITLE.—This part may be cited requirement’ means— (2) Subsection (b) of section 34 of the 1986 as the ‘Student Improvement Incentive ‘‘(i) the requirement under paragraph Code is amended by striking ‘‘section 6421(j)’’ Grants Act’. (2)(A)(i) that an employer be an eligible em- and inserting ‘‘section 6421(i)’’. ‘‘(b) GRANTS AUTHORIZED.— ployer, (3) Subsections (a) and (b) of section 6421 of ‘‘(1) IN GENERAL.—The Secretary may ‘‘(ii) the requirement under paragraph the 1986 Code are each amended by striking award a grant to a State educational agency (2)(D) that an arrangement be the only plan ‘‘subsection (j)’’ and inserting ‘‘subsection that carries out a statewide assessment de- of an employer, and (i)’’. scribed in subsection (c) to enable the agen- ‘‘(iii) the participation requirements under (b) Sections 4092(b) and 6427(q)(2) of the 1986 cy to make awards to outstanding public sec- paragraph (4). Code are each amended by striking ‘‘section ondary schools in the State under subsection ‘‘(C) TRANSITION PERIOD.—For purposes of 4041(c)(4)’’ and inserting ‘‘section 4041(c)(2)’’. (d). this paragraph, the term ‘transition period’ (c) Sections 4221(c) and 4222(d) of the 1986 ‘‘(2) AMOUNT.—The Secretary shall award a means the period beginning on the date of Code are each amended by striking grant to a State educational agency under any transaction described in subparagraph ‘‘4053(a)(6)’’ and inserting ‘‘4053(6)’’. this section for a fiscal year in the amount (A) and ending on the last day of the second (d) Paragraph (5) of section 6416(b) of the of $50,000. ‘‘(c) STATEWIDE ASSESSMENT.—In order to calendar year following the calendar year in 1986 Code is amended by striking ‘‘section be eligible to receive a grant under this sec- which such transaction occurs.’’. 4216(e)(1)’’ each place it appears and insert- (C) Section 408(p)(2) of the 1986 Code is tion, a State educational agency shall con- ing ‘‘section 4216(d)(1)’’. duct a statewide assessment that— amended— (e) Paragraph (3) of section 6427(f) of the ‘‘(1) determines the educational progress of (i) by striking ‘‘the preceding sentence 1986 Code is amended by striking ‘‘, (e),’’. students attending public secondary schools shall apply only in accordance with rules (f)(1) Section 6427 of the 1986 Code, as within the State; similar to the rules of section 410(b)(6)(C)(i)’’ amended by paragraph (2), is amended by re- ‘‘(2) allows for an objective analysis of the in the last sentence of subparagraph (C)(i)(II) designating subsections (n), (p), (q), and (r) assessment on a school-by-school basis; and and inserting ‘‘the preceding sentence shall as subsections (m), (n), (o), and (p), respec- ‘‘(3) may involve exit exams. not apply’’, and tively. ‘‘(d) PUBLIC SECONDARY SCHOOL AWARDS.— (ii) by striking clause (iii) of subparagraph (2) Paragraphs (1) and (2)(A) of section ‘‘(1) IN GENERAL.—Each State educational (D). 6427(i) of the 1986 Code are each amended by agency receiving a grant under this section (2) AMENDMENT TO SECTION 1601(d)(4).—Sec- striking ‘‘(q)’’ and inserting ‘‘(o)’’. for a fiscal year shall use the proceeds of the tion 1601(d)(4)(A) of the 1997 Act is amended— (g) Subsection (e) of section 9502 of the 1986 grant to make awards to public secondary (A) by striking ‘‘Section 403(b)(11)’’ and in- Code is amended to read as follows: schools in the State as follows: serting ‘‘Paragraphs (7)(A)(ii) and (11) of sec- ‘‘(e) CERTAIN TAXES ON ALCOHOL MIXTURES ‘‘(A) $25,000 shall be awarded to the public tion 403(b)’’, and TO REMAIN IN GENERAL FUND.—For purposes secondary school in the State in which the (B) by striking ‘‘403(b)(1)’’ in clause (ii) and of this section, the amounts which would educational progress of the students attend- inserting ‘‘403(b)(10)’’. (but for this subsection) be required to be ap- ing the school is determined, pursuant to the (b) AMENDMENT RELATED TO SECTION propriated under subparagraphs (A), (C), and statewide assessment described in subsection 1601(f)(4) OF 1997 ACT.—Subsection (d) of sec- (D) of subsection (b)(1) shall be reduced by— (c), to be the best in the State. tion 6427 of the 1986 Code is amended— ‘‘(1) 0.6 cent per gallon in the case of taxes ‘‘(B) $15,000 shall be awarded to the public (1) by striking ‘‘HELICOPTERS’’ in the head- imposed on any mixture at least 10 percent secondary school in the State in which the ing and inserting ‘‘OTHER AIRCRAFT USES’’, of which is alcohol (as defined in section educational progress of the students attend- and 4081(c)(3)) if any portion of such alcohol is ing the school is determined, pursuant to the (2) by inserting ‘‘or a fixed-wing aircraft’’ ethanol, and statewide assessment described in subsection after ‘‘helicopter’’. ‘‘(2) 0.67 cent per gallon in the case of fuel (c), to be the second best in the State. SEC. 616. AMENDMENT RELATED TO OMNIBUS used in producing a mixture described in ‘‘(C) $10,000 shall be awarded to the public BUDGET RECONCILIATION ACT OF paragraph (1).’’. secondary school in the State in which the 1993. (h)(1) Clause (i) of section 9503(c)(2)(A) of enrolled students have the greatest increase (a) IN GENERAL.—Section 196(c) of the 1986 the 1986 Code is amended by adding ‘‘and’’ at in educational progress from one academic Code is amended by striking ‘‘and’’ at the the end of subclause (II), by striking sub- year to the subsequent academic year as de- end of paragraph (6), by striking the period clause (III), and by redesignating subclause termined pursuant to the statewide assess- at the end of paragraph (7), and insert ‘‘, (IV) as subclause (III). ment described in subsection (c), except that and’’, and by adding at the end the following (2) Clause (ii) of such section is amended by in the case of a State that did not conduct new paragraph: striking ‘‘gasoline, special fuels, and lubri- such an assessment in the fiscal year preced- ‘‘(8) the employer social security credit de- cating oil’’ each place it appears and insert- ing the fiscal year for which the determina- termined under section 45B(a).’’. ing ‘‘fuel’’. tion is made, the $10,000 shall be awarded to (b) EFFECTIVE DATE.—The amendment (i) The amendments made by this section the public secondary school in the State in made by this section shall take effect as if shall take effect on the date of the enact- which the educational progress of students included in the amendments made by section attending the school is determined, pursuant ment of this Act. 13443 of the Revenue Reconciliation Act of to the statewide assessment described in sub- 1993. SEC. 620. EFFECTIVE DATE. section (c), to be the third best in the State. SEC. 617. AMENDMENT RELATED TO TAX REFORM Except as otherwise provided in this title, ‘‘(2) STATE AUTHORITY TO LIMIT AWARDS.— ACT OF 1984. the amendments made by this title shall Each State educational agency receiving a (a) IN GENERAL.—Paragraph (3) of section take effect as if included in the provisions of grant under this section may limit the num- 136(c) of the Tax Reform Act of 1984 is the Taxpayer Relief Act of 1997 to which ber of awards made to a public secondary amended by adding at the end the following they relate. school in the State or the number of years flush sentence: for which such awards are made. ‘‘The treatment under the preceding sen- ‘‘(e) CONSTRUCTION.—Nothing in this sec- tence shall apply to each period after June KEMPTHORNE AMENDMENT NO. tion shall be construed to prohibit a State 30, 1983, during which such members are sta- 2030 from using State funds to increase the pled entities, whether or not such members amount of awards made under subsection (d) are stapled entities for all periods after June (Ordered to lie on the table.) or to make awards to public secondary schools that are not described in subsection 30, 1983.’’. Mr. KEMPTHORNE submitted an (d). (b) EFFECTIVE DATE.—The amendment amendment intended to be proposed by ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— made by subsection (a) shall take effect as if him to the bill, H.R. 2646, supra; as fol- There is authorized to be appropriated to included in the Tax Reform Act of 1984 as of lows: carry out this section $2,600,000 for each of the date of the enactment of such Act. At the end, add the following: the fiscal years 1999 through 2003. Any funds SEC. 618. AMENDMENT RELATED TO TAX REFORM TITLE ll—STUDENT IMPROVEMENT appropriated under the authority of the pre- ACT OF 1986. ceding sentence for a fiscal year that remain INCENTIVE GRANT PROGRAM (a) IN GENERAL.—Section 6401(b)(1) of the available for obligation at the end of the fis- 1986 Code is amended by striking ‘‘and D’’ SEC. ll01. STUDENT IMPROVEMENT INCENTIVE cal year shall be returned to the Treasury.’’. and inserting ‘‘D, and G’’. GRANT PROGRAM. (b) EFFECTIVE DATE.—The amendment Title X of the Elementary and Secondary WELLSTONE AMENDMENTS NOS. made by subsection (a) shall take effect as if Education Act of 1965 (20 U.S.C. 8001 et seq.) included in the amendments made by section is amended by adding at the end the follow- 2031–2032 701(b) of the Tax Reform Act of 1986. ing: (Ordered to lie on the table.) S2330 CONGRESSIONAL RECORD — SENATE March 19, 1998 Mr. WELLSTONE submitted two ethnicity, socioeconomic status, and dem- (1) REMOVAL OF TEEN PARENTS FROM 30 PER- amendments intended to be proposed onstrated academic achievement. CENT LIMITATION.—Section 407(c)(2)(D) of the by him to the bill, H.R. 2646, supra; as (c) TIMELINE.—The Secretary shall conduct Social Security Act (42 U.S.C. 607(c)(2)(D)) is follows: the study described in subsection (b), and re- amended by striking ‘‘, or (if the month is in port to Congress regarding the results of the fiscal year 2000 or thereafter) deemed to be AMENDMENT NO. 2031 study, not later than 6 months after the date engaged in work for the month by reason of At the end, insert the following: of enactment of this Act. subparagraph (C) of this paragraph’’. TITLE ll—STUDY AMENDMENT NO. 2032 (2) EXTENSION OF CAP TO POSTSECONDARY SEC. ll01. STUDY. Strike section 101 and insert the following: EDUCATION.—Section 407(c)(2)(D) of the Social (a) PREVIOUS FINDINGS.—Congress finds Security Act (42 U.S.C. 607(c)(2)(D)) is SEC. 101. HOPE AND LIFETIME LEARNING CRED- amended by striking ‘‘vocational edu- that, with respect to the connection between ITS MADE REFUNDABLE FOR CER- parental income and the educational attain- TAIN TAXPAYERS. cational training’’ and inserting ‘‘training described in subsection (d)(8)’’. ment of children, various organizations have (a) IN GENERAL.—Section 25A (relating to made the following findings: HOPE and lifetime learning credits) is (c) CLARIFICATION THAT PARTICIPATION IN A (1) More observed differences across poten- amended by redesignating subsection (i) as FEDERAL WORK-STUDY PROGRAM ISA PERMIS- tial access and choice barriers occur by so- subsection (j) and by inserting after sub- SIBLE WORK ACTIVITY UNDER THE TANF PRO- cioeconomic status, and the differences section (h) the following: GRAM.—Paragraphs (2) and (3) of section 407(d) of the Social Security Act (42 U.S.C. occur from the outset. Of the 1988 eighth ‘‘(i) CREDIT MADE REFUNDABLE FOR LOW IN- 607(d)) are each amended by inserting ‘‘(in- graders studied, a smaller percentage of stu- COME TAXPAYERS.— cluding participation in an activity under a dents in the lowest socioeconomic quartile ‘‘(1) IN GENERAL.—In the case of an eligible completed applications for postsecondary taxpayer with respect to any taxable year, program established under part C of title IV education. And, from the outset, educational the aggregate credits allowed under subpart of the Higher Education Act of 1965)’’ before expectations, in terms of the percentages of C shall be increased by the credit which the semicolon. those who indicated achievement of at least would be allowed under this section without a bachelor’s degree, vary directly by socio- regard to this subsection and the limitation DURBIN AMENDMENT NO. 2034 economic ranking. under section 26(a). The amount of the credit (Ordered to lie on the table.) (2) Enrollment rates in 4-year colleges and allowed under this subsection shall not be Mr. DURBIN submitted an amend- universities were directly related to stu- treated as a credit allowed under this sub- dents’ family income and the level of their part and shall reduce the amount of the cred- ment intended to be proposed by him parents’ education. The proportion of stu- it otherwise allowable under subsection (a) to the bill, H.R. 2646, supra; as follows: dents enrolled in 4-year institutions in- without regard to section 26(a). Strike section 101 and insert: creased at every income level, with 1⁄3 of low- ‘‘(2) ELIGIBLE TAXPAYER.—For purposes of SEC. 101. INCREASE IN DEDUCTION FOR HEALTH income students (33 percent), almost half of this subsection— INSURANCE COSTS OF SELF-EM- middle-income students (47 percent), and ‘‘(A) IN GENERAL.—The term ‘eligible tax- PLOYED INDIVIDUALS. about 3⁄4 of high-income students (77 percent) payer’ means a taxpayer whose adjusted (a) INCREASE IN DEDUCTION.— attending such institutions. gross income for the taxable year does not (1) IN GENERAL.—Subparagraph (B) of sec- (3)(A) Between 1972 and 1995, the proportion exceed the applicable adjusted gross income tion 162(l)(1) is amended to read as follows: of high school graduates going directly to limit for such year. ‘‘(B) APPLICABLE PERCENTAGE.—For pur- college increased from 49 to 62 percent. ‘‘(B) APPLICABLE AMOUNT.— poses of subparagraph (A), the applicable (B) Between 1972 and 1995, high school ‘‘(i) IN GENERAL.—Subject to clause (ii), the percentage shall be determined under the graduates from high-income families were applicable adjusted gross income limit for following table: more likely than high school graduates from any taxable year is the amount of adjusted ‘‘For taxable years low-income families to go directly to college. gross income the Secretary determines will beginning in The applicable (C) Between 1990 and 1995, the higher the result in an amount equal to the aggregate calendar year— percentage is— education level of a student’s parents, the net reduction in revenues to the Treasury 1998 ...... ll more likely the student was to enroll in col- that would have occurred during such tax- 1999 ...... ll lege the year after high school. able year if the amendments made by section 2000 ...... ll (D) In 1995, black high school graduates 101 of S. 1133, 105th Congress, as reported by 2001 ...... ll were less likely than their white counter- the Committee on Finance of the Senate, 2002 ...... ll parts to go directly to college (51 percent had been enacted. 2003 ...... ll compared to 64 percent, respectively). ‘‘(ii) SUBSEQUENT ADJUSTMENTS.—Proper 2004 ...... ll (4) Between 1974 and 1994, postsecondary adjustments shall be made in any determina- 2005 ...... ll enrollment rates of low socioeconomic sta- tion made under clause (i) with respect to 2006 and thereafter ...... ll.’’ tus students increased at 2-year institutions any taxable year to the extent a determina- (2) EFFECTIVE DATE.—The amendment only, while postsecondary enrollment rates tion for the preceding taxable year resulted made by this subsection shall apply to tax- of high socioeconomic status students in- in an amount in excess of or less than the able years beginning after December 31, 1997. creased at 4-year institutions. amount of such reduction for such preceding (b) RULES RELATING TO FOREIGN OIL AND (5) Children who grow up in a poor or low- taxable year.’’ GAS INCOME.— income family tend to have lower edu- (b) EFFECTIVE DATE.—The amendments (1) SEPARATE BASKET FOR FOREIGN TAX cational and labor market attainments than made by this section shall apply to taxable CREDIT.— children from more affluent families. years beginning after December 31, 1998. (A) IN GENERAL.—Paragraph (1) of section (6) The financial pressures resulting from 904(d) (relating to separate application of rising public tuition, the failure of student WELLSTONE (AND FORD) section with respect to certain categories of aid programs to keep pace with inflation in AMENDMENT NO. 2033 income) is amended by striking ‘‘and’’ at the college costs, and the increase in Federal end of subparagraph (H), by redesignating loans relative to grants have had their (Ordered to lie on the table.) subparagraph (I) as subparagraph (J), and by strongest impact on lower income students. Mr. WELLSTONE (for himself and inserting after subparagraph (H) the follow- (7) Students from less affluent families are Mr. FORD) submitted an amendment in- ing new subparagraph: facing a college affordability crisis. While tended to be proposed by them to the ‘‘(I) foreign oil and gas income, and’’. college enrollments have continued to grow, bill, H.R. 2646, supra; as follows: (B) DEFINITION.—Paragraph (2) of section the growth is not among students from less 904(d) is amended by redesignating subpara- affluent families. Access for students with After title II add the following: graphs (H) and (I) as subparagraphs (I) and below-median incomes to 4-year colleges and TITLE ll—MISCELLANEOUS (J), respectively, and by inserting after sub- universities apparently has diminished since SEC ll01. EXPANSION OF EDUCATIONAL OP- paragraph (G) the following new subpara- 1981. The gap in enrollment rates for stu- PORTUNITIES FOR WELFARE RE- graph: dents from families in the lowest income CIPIENTS. ‘‘(H) FOREIGN OIL AND GAS INCOME.—The quartile and students from more affluent (a) 24 MONTHS OF POSTSECONDARY EDU- term ‘foreign oil and gas income’ has the families grew by 12 percentage points be- CATION AND VOCATIONAL EDUCATIONAL TRAIN- meaning given such term by section 954(g).’’ tween 1980 and 1993. ING MADE PERMISSIBLE WORK ACTIVITIES.— (C) CONFORMING AMENDMENTS.— (b) STUDY.—The Secretary of Education Section 407(d)(8) of the Social Security Act (i) Section 904(d)(3)(F)(i) is amended by shall conduct a study of the connection be- (42 U.S.C. 607(d)(8)) is amended to read as fol- striking ‘‘or (E)’’ and inserting ‘‘(E), or (I)’’. tween parental income and the educational lows: (ii) Section 907(a) is hereby repealed. attainment of children. The study shall— ‘‘(8) postsecondary education and voca- (iii) Section 907(c)(4) is hereby repealed. (1) examine, replicate, or dispute the find- tional educational training (not to exceed 24 (iv) Section 907(f) is hereby repealed. ings described in subsection (a); and months with respect to any individual);’’. (D) EFFECTIVE DATES.— (2) examine factors that influence post- (b) MODIFICATIONS TO THE EDUCATIONAL (i) IN GENERAL.—The amendments made by secondary education decisions by sex, race or CAP.— this paragraph shall apply to taxable years March 19, 1998 CONGRESSIONAL RECORD — SENATE S2331

beginning after the date of the enactment of ‘‘(1) IN GENERAL.—In the case of the trans- capital or profits interest in the partnership, this Act. fer of any interest in an entity other than an and (ii) TRANSITIONAL RULES.— interest which is actively traded (within the ‘‘(iii) in any other case, ownership of at (I) SEPARATE BASKET TREATMENT.—Any meaning of section 1092)— least 10 percent of the beneficial interests in taxes paid or accrued in a taxable year be- ‘‘(A) the value of any nonbusiness assets the entity. ginning on or before the date of the enact- held by the entity shall be determined as if ‘‘(5) COORDINATION WITH SUBSECTION (b).— ment of this Act, with respect to income the transferor had transferred such assets di- Subsection (b) shall apply after the applica- which was described in subparagraph (I) of rectly to the transferee (and no valuation tion of this subsection.’’ section 904(d)(1) of such Code (as in effect on discount shall be allowed with respect to (2) EFFECTIVE DATE.—The amendments the day before the date of the enactment of such nonbusiness assets), and made by this subsection shall apply to trans- this Act), shall be treated as taxes paid or ‘‘(B) the nonbusiness assets shall not be fers after the date of the enactment of this accrued with respect to foreign oil and gas taken into account in determining the value Act. income to the extent the taxpayer estab- of the interest in the entity. lishes to the satisfaction of the Secretary of ‘‘(2) NONBUSINESS ASSETS.—For purposes of NICKLES AMENDMENTS NOS. 2035– this subsection— the Treasury that such taxes were paid or ac- 2037 crued with respect to foreign oil and gas in- ‘‘(A) IN GENERAL.—The term ‘nonbusiness come. asset’ means any asset which is not used in (Ordered to lie on the table.) (II) CARRYOVERS.—Any unused oil and gas the active conduct of 1 or more trades or Mr. NICKLES submitted three extraction taxes which under section 907(f) of businesses. amendments intended to be proposed such Code (as so in effect) would have been ‘‘(B) EXCEPTION FOR CERTAIN PASSIVE AS- by him to the bill, H.R. 2646, supra; as allowable as a carryover to the taxpayer’s SETS.—Except as provided in subparagraph follows: (C), a passive asset shall not be treated for first taxable year beginning after the date of AMENDMENT NO. 2035 purposes of subparagraph (A) as used in the the enactment of this Act (without regard to Strike section 106. the limitation of paragraph (2) of such sec- active conduct of a trade or business unless— tion 907(f) for first taxable year) shall be al- ‘‘(i) the asset is property described in para- graph (1) or (4) of section 1221 or is a hedge AMENDMENT NO. 2036 lowed as carryovers under section 904(c) of Strike section 106 and insert: such Code in the same manner as if such with respect to such property, or SEC. 106. INCREASE IN DEDUCTION FOR HEALTH taxes were unused taxes under such section ‘‘(ii) the asset is real property used in the active conduct of 1 or more real property INSURANCE FOR SELF-EMPLOYEDS. 904(c) with respect to foreign oil and gas ex- (a) IN GENERAL.—The table contained in traction income. trades or businesses (within the meaning of section 469(c)(7)(C)) in which the transferor section 162(l)(1)(B) is amended— (III) LOSSES.—The amendment made by materially participates and with respect to (1) by striking the item relating to years subparagraph (C)(iii) shall not apply to for- 1998 and 1999, and eign oil and gas extraction losses arising in which the transferor meets the requirements of section 469(c)(7)(B)(ii). (2) by striking ‘‘2000 and 2001’’ and insert- taxable years beginning on or before the date ing ‘‘1998 through 2001’’. For purposes of clause (ii), material partici- of the enactment of this Act. (b) EFFECTIVE DATE.—The amendments (2) ELIMINATION OF DEFERRAL FOR FOREIGN pation shall be determined under the rules of made by this section shall apply to taxable OIL AND GAS EXTRACTION INCOME.— section 469(h), except that section 469(h)(3) years beginning after December 31, 1997. (A) GENERAL RULE.—Paragraph (1) of sec- shall be applied without regard to the limita- tion 954(g) (defining foreign base company oil tion to farming activity. AMENDMENT NO. 2037 ‘‘(C) EXCEPTION FOR WORKING CAPITAL.— related income) is amended to read as fol- At the end of title I, insert: lows: Any asset (including a passive asset) which ll is held as a part of the reasonably required SEC. . INCOME TAXED AT LOWEST RATE IN- ‘‘(1) IN GENERAL.—Except as otherwise pro- CREASED TO $35,000 FOR UNMAR- vided in this subsection, the term ‘foreign oil working capital needs of a trade or business RIED INDIVIDUALS, $70,000 FOR and gas income’ means any income of a kind shall be treated as used in the active conduct JOINT RETURNS AND SURVIVING which would be taken into account in deter- of a trade or business. SPOUSES, AND $52,600 FOR HEADS mining the amount of— ‘‘(3) PASSIVE ASSET.—For purposes of this OF HOUSEHOLDS. ‘‘(A) foreign oil and gas extraction income subsection, the term ‘passive asset’ means (a) GENERAL RULE.—Section 1 (relating to (as defined in section 907(c)), or any— tax imposed) is amended by striking sub- ‘‘(B) foreign oil related income (as defined ‘‘(A) cash or cash equivalents, sections (a) through (e) and inserting the fol- in section 907(c)).’’ ‘‘(B) except to the extent provided by the lowing: Secretary, stock in a corporation or any ‘‘(a) MARRIED INDIVIDUALS FILING JOINT RE- (B) CONFORMING AMENDMENTS.— TURNS AND SURVIVING SPOUSES.—There is (i) Subsections (a)(5), (b)(5), and (b)(8) of other equity, profits, or capital interest in hereby imposed on the taxable income of— section 954 are each amended by striking any entity, ‘‘(1) every married individual (as defined in ‘‘base company oil related income’’ each ‘‘(C) evidence of indebtedness, option, for- section 7703) who makes a single return place it appears (including in the heading of ward or futures contract, notional principal contract, or derivative, jointly with his spouse under section 6013, subsection (b)(8)) and inserting ‘‘oil and gas ‘‘(D) asset described in clause (iii), (iv), or and income’’. (v) of section 351(e)(1)(B), ‘‘(2) every surviving spouse (as defined in (ii) Subsection (b)(4) of section 954 is ‘‘(E) annuity, section 2(a)), amended by striking ‘‘base company oil-re- ‘‘(F) real property used in 1 or more real lated income’’ and inserting ‘‘oil and gas in- a tax determined in accordance with the fol- property trades or businesses (as defined in come’’. lowing table: section 469(c)(7)(C)), (iii) The subsection heading for subsection ‘‘If taxable income is: The tax is: ‘‘(G) asset (other than a patent, trade- (g) of section 954 is amended by striking Not over $70,000 ...... 15% of taxable income. mark, or copyright) which produces royalty Over $70,000 but not over $10,500, plus 28% of the ‘‘FOREIGN BASE COMPANY OIL RELATED IN- income, $102,300. excess over $70,000. COME’’ and inserting ‘‘FOREIGN OIL AND GAS ‘‘(H) commodity, Over $102,300 but not over $19,544, plus 31% of the INCOME’’. $155,950. excess over $102,300. ‘‘(I) collectible (within the meaning of sec- Over $155,950 but not over $36,175, plus 36% of the (iv) Subparagraph (A) of section 954(g)(2) is tion 401(m)), or amended by striking ‘‘foreign base company $278,450. excess over $155,950. ‘‘(J) any other asset specified in regula- Over $278,450 ...... $80,275, plus 39.6% of the oil related income’’ and inserting ‘‘foreign tions prescribed by the Secretary. excess over $278,450. oil and gas income’’. ‘‘(4) LOOK-THRU RULES.— ‘‘(b) HEADS OF HOUSEHOLDS.—There is here- (C) EFFECTIVE DATE.—The amendments ‘‘(A) IN GENERAL.—If a nonbusiness asset of by imposed on the taxable income of every made by this paragraph shall apply to tax- an entity consists of a 10-percent interest in head of a household (as defined in section able years of foreign corporations beginning any other entity, this subsection shall be ap- 2(b)) a tax determined in accordance with the after the date of the enactment of this Act, plied by disregarding the 10-percent interest following table: and to taxable years of United States share- and by treating the entity as holding di- holders ending with or within such taxable ‘‘If taxable income is: The tax is: rectly its ratable share of the assets of the Not over $52,600 ...... 15% of taxable income. years of foreign corporations. other entity. This subparagraph shall be ap- Over $52,600 but not over $7,890, plus 28% of the ex- (c) VALUATION RULES FOR TRANSFERS IN- plied successively to any 10-percent interest $87,700. cess over $52,600. VOLVING NONBUSINESS ASSETS.— of such other entity in any other entity. Over $87,700 but not over $17,718, plus 31% of the (1) IN GENERAL.—Section 2031 (relating to $142,000. excess over $87,700. ‘‘(B) 10-PERCENT INTEREST.—The term ‘10- Over $142,000 but not over $34,551, plus 36% of the definition of gross estate) is amended by re- percent interest’ means— $278,450. excess over $142,000. designating subsection (d) as subsection (e) ‘‘(i) in the case of an interest in a corpora- Over $278,450 ...... $83,673 plus 39.6% of the and by inserting after subsection (c) the fol- tion, ownership of at least 10 percent (by excess over $278,450. lowing new subsection: vote or value) of the stock in such corpora- ‘‘(c) UNMARRIED INDIVIDUALS (OTHER THAN ‘‘(d) VALUATION RULES FOR CERTAIN TRANS- tion, SURVIVING SPOUSES AND HEADS OF HOUSE- FERS OF NONBUSINESS ASSETS.—For purposes ‘‘(ii) in the case of an interest in a partner- HOLDS).—There is hereby imposed on the tax- of this chapter and chapter 12— ship, ownership of at least 10 percent of the able income of every individual (other than a S2332 CONGRESSIONAL RECORD — SENATE March 19, 1998 surviving spouse as defined in section 2(a) or (4) Subparagraph (B) of section 132(f)(6) is ‘‘(ii) for the operating costs of a qualified the head of a household as defined in section amended by inserting before the period ‘‘, de- child care facility of the taxpayer, including 2(b)) who is not a married individual (as de- termined by substituting ‘calendar year 1992’ costs related to the training of employees of fined in section 7703) a tax determined in ac- for ‘calendar year 1997’ in subparagraph (B) the child care facility, to scholarship pro- cordance with the following table: thereof’’. grams, to the providing of differential com- ‘‘If taxable income is: The tax is: (5) Paragraph (2) of section 220(g) is amend- pensation to employees based on level of Not over $35,000 ...... 15% of taxable income. ed by striking ‘‘ by substituting ‘calendar child care training, and to expenses associ- Over $35,000 but not over $5,250, plus 28% of the ex- year 1997’ for ‘calendar year 1992’ in subpara- ated with achieving accreditation, $61,400. cess over $35,000. graph (B) thereof’’. ‘‘(iii) under a contract with a qualified Over $61,400 but not over $12,642, plus 31% of the (6) Subparagraph (B) of section 685(c)(3) is child care facility to provide child care serv- $128,100. excess over $61,400. amended by striking ‘‘, by substituting ‘cal- ices to employees of the taxpayer, or Over $128,100 but not over $33,319, plus 36% of the $278,450. excess over $128,100. endar year 1997’ for ‘calendar year 1992’ in ‘‘(iv) under a contract to provide child care Over $278,450 ...... $87,445, plus 39.6% of the subparagraph (B) thereof’’. resource and referral services to employees excess over $278,450. (7) Subparagraph (B) of section 2032A(a)(3) of the taxpayer. ‘‘(d) MARRIED INDIVIDUALS FILING SEPA- is amended by striking ‘‘by substituting ‘cal- ‘‘(B) EXCLUSION FOR AMOUNTS FUNDED BY RATE RETURNS.—There is hereby imposed on endar year 1997’ for ‘calendar year 1992’ in GRANTS, ETC.—The term ‘qualified child care the taxable income of every married individ- subparagraph (B) thereof’’. expenditure’ shall not include any amount to ual (as defined in section 7703) who does not (8) Subparagraph (B) of section 2503(b)(2) is the extent such amount is funded by any make a single return jointly with his spouse amended by striking ‘‘by substituting ‘cal- grant, contract, or otherwise by another per- under section 6013, a tax determined in ac- endar year 1997’ for ‘calendar year 1992’ in son (or any governmental entity). cordance with the following table: subparagraph (B) thereof’’. ‘‘(C) LIMITATION ON ALLOWABLE OPERATING (9) Paragraph (2) of section 2631(c) is COSTS.—The term ‘qualified child care ex- ‘‘If taxable income is: The tax is: amended by striking ‘‘by substituting ‘cal- penditure’ shall not include any amount de- Not over $35,000 ...... 15% of taxable income. Over $35,000 but not over $5,250, plus 28% of the ex- endar year 1997’ for ‘calendar year 1992’ in scribed in subparagraph (A)(ii) if such $51,150. cess over $35,000. subparagraph (B) thereof’’. amount is paid or incurred after the third Over $51,150 but not over $9,772, plus 31% of the ex- (10) Subparagraph (B) of 6601(j)(3) is amend- taxable year in which a credit under this sec- $77,975. cess over $51,150. ed by striking ‘‘by substituting ‘calendar tion is taken by the taxpayer, unless the Over $77,975 but not over $18,088, plus 36% of the year 1997’ for ‘calendar year 1992’ in subpara- qualified child care facility of the taxpayer $139,225. excess over $77,975. graph (B) thereof’’. has received accreditation from a nationally Over $139,225 ...... $40,138, plus 39.6% of the (d) MODIFICATION OF WITHHOLDING TABLES recognized accrediting body before the end of excess over $139,225. FOR TAXABLE YEAR 1998.—Notwithstanding such third taxable year. ‘‘(e) ESTATES AND TRUSTS.—There is hereby the provisions of section 3402(a) of the Inter- ‘‘(2) QUALIFIED CHILD CARE FACILITY.— imposed on the taxable income of— nal Revenue Code of 1986, the Secretary of ‘‘(A) IN GENERAL.—The term ‘qualified ‘‘(1) every estate, and the Treasury shall modify the tables and child care facility’ means a facility— ‘‘(2) every trust, procedures under section 3402(a)(1) of such ‘‘(i) the principal use of which is to provide taxable under this subsection a tax deter- Code to reflect the amendment made by sub- child care assistance, and mined in accordance with the following section (a). Such modification shall— ‘‘(ii) which meets the requirements of all table: (1) take effect on July 1, 1998, and applicable laws and regulations of the State (2) reflect the entire reduction in taxes for ‘‘If taxable income is: The tax is: or local government in which it is located, Not over $1,700 ...... 15% of taxable income. calendar year 1998 made by such amendment including, but not limited to, the licensing of Over $1,700 but not over $255, plus 28% of the ex- during the 6-month period beginning July 1, the facility as a child care facility. $4,000. cess over $1,700. 1998. Clause (i) shall not apply to a facility which Over $4,000 but not over $899, plus 31% of the ex- (e) EFFECTIVE DATE.—The amendments is the principal residence (within the mean- $6,100. cess over $4,000. made by this section shall apply to taxable Over $6,100 but not over $1,550, plus 36% of the ex- years beginning after December 31, 1997. ing of section 1034) of the operator of the fa- $8,350. cess over $6,100. cility. Over $8,350 ...... $2,360, plus 39.6% of the ‘‘(B) SPECIAL RULES WITH RESPECT TO A TAX- excess over $8,350.’’. DODD AMENDMENT NO. 2038 PAYER.—A facility shall not be treated as a (b) INFLATION ADJUSTMENT TO APPLY IN DE- (Ordered to lie on the table.) qualified child care facility with respect to a TERMINING RATES FOR 1999.—Subsection (f) of Mr. DODD submitted an amendment taxpayer unless— section 1 is amended— intended to be proposed by him to the ‘‘(i) enrollment in the facility is open to (1) by striking ‘‘1993’’ in paragraph (1) and bill, H.R. 2646, supra; as follows: employees of the taxpayer during the taxable inserting ‘‘1998’’, year, Strike section 101 and insert: (2) by striking ‘‘1992’’ in paragraph (3)(B) ‘‘(ii) the facility is not the principal trade and inserting ‘‘1997’’, and SEC. 101. ALLOWANCE OF CREDIT FOR EM- or business of the taxpayer unless at least 30 PLOYER EXPENSES FOR CHILD CARE (3) by striking paragraph (7). ASSISTANCE. percent of the enrollees of such facility are (c) CONFORMING AMENDMENTS.— (a) IN GENERAL.—Subpart D of part IV of dependents of employees of the taxpayer, and (1) The following provisions are each subchapter A of chapter 1 (relating to busi- ‘‘(iii) the costs to employees of child care amended by striking ‘‘1992’’ and inserting ness related credits) is amended by adding at services at such facility are determined on a ‘‘1997’’ each place it appears: the end the following: sliding fee scale. (A) Section 25A(h). ‘‘SEC. 45D. EMPLOYER-PROVIDED CHILD CARE ‘‘(d) RECAPTURE OF ACQUISITION AND CON- (B) Section 32(j)(1)(B). CREDIT. STRUCTION CREDIT.— (C) Section 41(e)(5)(C). ‘‘(a) ALLOWANCE OF CREDIT.—For purposes ‘‘(1) IN GENERAL.—If, as of the close of any (D) Section 42(h)(6)(G)(i)(II). of section 38, the employer-provided child taxable year, there is a recapture event with (E) Section 68(b)(2)(B). care credit determined under this section for respect to any qualified child care facility of (F) Section 135(b)(2)(B)(ii). the taxable year is an amount equal to 25 the taxpayer, then the tax of the taxpayer (G) Section 151(d)(4). percent of the qualified child care expendi- under this chapter for such taxable year (H) Section 221(g)(1)(B). tures of the taxpayer for such taxable year. shall be increased by an amount equal to the (I) Section 512(d)(2)(B). ‘‘(b) DOLLAR LIMITATION.—The credit al- product of— (J) Section 513(h)(2)(C)(ii). lowable under subsection (a) for any taxable ‘‘(A) the applicable recapture percentage, (K) Section 877(a)(2). year shall not exceed $150,000. and (L) Section 911(b)(2)(D)(ii)(II). ‘‘(c) DEFINITIONS.—For purposes of this sec- ‘‘(B) the aggregate decrease in the credits (M) Section 4001(e)(1)(B). tion— allowed under section 38 for all prior taxable (N) Section 4261(e)(4)(A)(ii). ‘‘(1) QUALIFIED CHILD CARE EXPENDITURE.— years which would have resulted if the quali- (O) Section 6039F(d). ‘‘(A) IN GENERAL.—The term ‘qualified fied child care expenditures of the taxpayer (P) Section 6334(g)(1)(B). child care expenditure’ means any amount described in subsection (c)(1)(A) with respect (Q) Section 7430(c)(1). paid or incurred— to such facility had been zero. (2) Subparagraph (B) of section 59(j)(2) is ‘‘(i) to acquire, construct, rehabilitate, or ‘‘(2) APPLICABLE RECAPTURE PERCENTAGE.— amended by striking ‘‘, determined by sub- expand property— ‘‘(A) IN GENERAL.—For purposes of this sub- stituting ‘1997’ for ‘1992’ in subparagraph (B) ‘‘(I) which is to be used as part of a quali- section, the applicable recapture percentage thereof’’. fied child care facility of the taxpayer, shall be determined from the following table: (3) Subparagraph (B) of section 63(c)(4) is ‘‘(II) with respect to which a deduction for The applicable amended by striking ‘‘by substituting for’’ depreciation (or amortization in lieu of de- recapture and all that follows and inserting ‘‘by sub- preciation) is allowable, and ‘‘If the recapture event percentage is: stituting for ‘calendar year 1997’ in subpara- ‘‘(III) which does not constitute part of the occurs in: graph (B) thereof ‘calendar year 1987’ in the principal residence (within the meaning of Years 1–3 ...... 100 case of the dollar amounts contained in para- section 1034) of the taxpayer or any employee Year 4 ...... 85 graph (2) or (5)(A) or subsection (f).’’ of the taxpayer, Year 5 ...... 70 March 19, 1998 CONGRESSIONAL RECORD — SENATE S2333 Year 6 ...... 55 poses of the preceding sentence, the term ‘re- ning on the date of enactment of the Na- Year 7 ...... 40 capture amount’ means any increase in tax tional Dropout Prevention Act of 1998, to Year 8 ...... 25 (or adjustment in carrybacks or carryovers) lower the school dropout rate, and increase Years 9 and 10 ...... 10 determined under subsection (d). school completion, for middle school and sec- Years 11 and thereafter 0. ‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No ondary school students in accordance with ‘‘(B) YEARS.—For purposes of subparagraph deduction or credit shall be allowed under Federal law. As part of this priority, all Fed- (A), year 1 shall begin on the first day of the any other provision of this chapter with re- eral agencies that carry out activities that taxable year in which the qualified child spect to the amount of the credit determined serve students at risk of dropping out of care facility is placed in service by the tax- under this section.’’. school or that are intended to help address payer. (b) CONFORMING AMENDMENTS.— the school dropout problem shall make ‘‘(3) RECAPTURE EVENT DEFINED.—For pur- (1) Section 38(b) is amended— school dropout prevention a top priority in poses of this subsection, the term ‘recapture (A) by striking out ‘‘plus’’ at the end of the agencies’ funding priorities during the 5- event’ means— paragraph (11), year period. ‘‘(A) CESSATION OF OPERATION.—The ces- (B) by striking out the period at the end of ‘‘(b) ENHANCED DATA COLLECTION.—The sation of the operation of the facility as a paragraph (12), and inserting a comma and Secretary shall collect systematic data on qualified child care facility. ‘‘plus’’, and the participation of different racial and eth- ‘‘(B) CHANGE IN OWNERSHIP.— (C) by adding at the end the following new nic groups (including migrant and limited ‘‘(i) IN GENERAL.—Except as provided in paragraph: English proficient students) in all Federal clause (ii), the disposition of a taxpayer’s in- ‘‘(13) the employer-provided child care programs. terest in a qualified child care facility with credit determined under section 45D.’’. respect to which the credit described in sub- ‘‘SEC. 5312. NATIONAL SCHOOL DROPOUT PRE- (2) The table of sections for subpart D of VENTION STRATEGY. section (a) was allowable. part IV of subchapter A of chapter 1 is ‘‘(a) PLAN.—The Director shall develop, im- ‘‘(ii) AGREEMENT TO ASSUME RECAPTURE LI- amended by adding at the end the following plement, and monitor an interagency plan ABILITY.—Clause (i) shall not apply if the new item: person acquiring such interest in the facility (in this section referred to as the ‘‘plan’’) to agrees in writing to assume the recapture li- ‘‘Sec. 45D. Employer-provided child care assess the coordination, use of resources, and ability of the person disposing of such inter- credit.’’. availability of funding under Federal law that can be used to address school dropout est in effect immediately before such disposi- (c) EFFECTIVE DATE.—The amendments tion. In the event of such an assumption, the made by this section shall apply to taxable prevention, or middle school or secondary person acquiring the interest in the facility years beginning after December 31, 1998. school reentry. The plan shall be completed shall be treated as the taxpayer for purposes and transmitted to the Secretary and Con- of assessing any recapture liability (com- gress not later than 180 days after the first KOHL (AND JOHNSON) Director is appointed. puted as if there had been no change in own- AMENDMENT NO. 2039 ership). ‘‘(b) COORDINATION.—The plan shall address inter- and intra-agency program coordina- ‘‘(4) SPECIAL RULES.— (Ordered to lie on the table.) tion issues at the Federal level with respect ‘‘(A) TAX BENEFIT RULE.—The tax for the Mr. KOHL (for himself and Mr. JOHN- to school dropout prevention and middle taxable year shall be increased under para- SON) submitted an amendment in- graph (1) only with respect to credits allowed school and secondary school reentry, assess tended to be proposed by them to the the targeting of existing Federal services to by reason of this section which were used to bill, H.R. 2646, supra; as follows: reduce tax liability. In the case of credits students who are most at risk of dropping At the appropriate place, insert: out of school, and the cost-effectiveness of not so used to reduce tax liability, the ll carryforwards and carrybacks under section SEC. . GAIN OR LOSS FROM SALE OF LIVE- various programs and approaches used to ad- STOCK DISREGARDED FOR PUR- 39 shall be appropriately adjusted. dress school dropout prevention. POSES OF EARNED INCOME CREDIT. ‘‘(c) AVAILABLE RESOURCES.—The plan ‘‘(B) NO CREDITS AGAINST TAX.—Any in- (a) IN GENERAL.—Section 32(i)(2)(D) (relat- crease in tax under this subsection shall not shall also describe the ways in which State ing to disqualified income) is amended by in- and local agencies can implement effective be treated as a tax imposed by this chapter serting ‘‘determined without regard to gain for purposes of determining the amount of school dropout prevention programs using or loss from the sale of livestock described in funds from a variety of Federal programs, in- any credit under subpart A, B, or D of this section 1231(b)(3),’’ after ‘‘taxable year,’’. part. cluding the programs under title I of the Ele- (b) DISALLOWANCE OF INTEREST DEDUCTION mentary and Secondary Education Act of ‘‘(C) NO RECAPTURE BY REASON OF CASUALTY ON RESIDENCES OUTSIDE THE UNITED 1965 (20 U.S.C. 6301 et seq.) and the School-to- LOSS.—The increase in tax under this sub- STATES.—Section 163(h)(4)(A)(i) (defining Work Opportunities Act of 1994 (20 U.S.C. section shall not apply to a cessation of op- qualified residence) is amended by adding at eration of the facility as a qualified child 6101 et seq.). the end the following new flush sentence: ‘‘(d) SCOPE.—The plan will address all Fed- care facility by reason of a casualty loss to ‘‘Such term shall not include a residence lo- eral programs with school dropout preven- the extent such loss is restored by recon- cated outside the United States.’’ tion or school reentry elements or objec- struction or replacement within a reasonable (c) EFFECTIVE DATES.— tives, programs under chapter 1 of subpart 2 period established by the Secretary. (1) LIVESTOCK.—The amendment made by ‘‘(e) SPECIAL RULES.—For purposes of this of part A of title IV of the Higher Education section— subsection (a) shall apply to taxable years Act of 1965 (20 U.S.C. 1070a–11 et seq.), title I beginning after December 31, 1995. ‘‘(1) AGGREGATION RULES.—All persons of the Elementary and Secondary Education which are treated as a single employer under Act of 1965 (20 U.S.C. 6301 et seq.), the subsections (a) and (b) of section 52 shall be BINGAMAN AMENDMENTS NOS. School-to-Work Opportunities Act of 1994 (20 treated as a single taxpayer. 2040–2041 U.S.C. 6101 et seq.), and part B of title IV of ‘‘(2) PASS-THRU IN THE CASE OF ESTATES AND the Job Training Partnership Act (29 U.S.C. (Ordered to lie on the table.) 1691 et seq.), and other programs. TRUSTS.—Under regulations prescribed by Mr. BINGAMAN submitted two the Secretary, rules similar to the rules of ‘‘SEC. 5313. NATIONAL CLEARINGHOUSE. subsection (d) of section 52 shall apply. amendments intended to be proposed ‘‘Not later than 6 months after the date of ‘‘(3) ALLOCATION IN THE CASE OF PARTNER- by him to the bill, H.R. 2646, supra; as enactment of the National Dropout Preven- SHIPS.—In the case of partnerships, the cred- follows: tion Act of 1998, the Director shall establish it shall be allocated among partners under AMENDMENT NO. 2040 a national clearinghouse on effective school regulations prescribed by the Secretary. Strike section 101, and insert the follow- dropout prevention, intervention and reentry ‘‘(f) NO DOUBLE BENEFIT.— ing: programs. The clearinghouse shall be estab- ‘‘(1) REDUCTION IN BASIS.—For purposes of lished through a competitive grant or con- SEC. 101. DROPOUT PREVENTION AND STATE RE- this subtitle— SPONSIBILITIES. tract awarded to an organization with a ‘‘(A) IN GENERAL.—If a credit is determined demonstrated capacity to provide technical (a) SHORT TITLE.—This section may be under this section with respect to any prop- cited as the ‘‘National Dropout Prevention assistance and disseminate information in erty by reason of expenditures described in Act of 1998’’. the area of school dropout prevention, inter- subsection (c)(1)(A), the basis of such prop- (b) DROPOUT PREVENTION.—Part C of title V vention, and reentry programs. The clearing- erty shall be reduced by the amount of the of the Elementary and Secondary Education house shall— credit so determined. Act of 1965 (20 U.S.C. 7261 et seq.) is amended ‘‘(1) collect and disseminate to educators, ‘‘(B) CERTAIN DISPOSITIONS.—If during any to read as follows: parents, and policymakers information on taxable year there is a recapture amount de- research, effective programs, best practices, termined with respect to any property the ‘‘PART C—ASSISTANCE TO ADDRESS and available Federal resources with respect basis of which was reduced under subpara- SCHOOL DROPOUT PROBLEMS to school dropout prevention, intervention, graph (A), the basis of such property (imme- ‘‘Subpart 1—Coordinated National Strategy and reentry programs, including dissemina- diately before the event resulting in such re- ‘‘SEC. 5311. NATIONAL ACTIVITIES. tion by an electronically accessible data- capture) shall be increased by an amount ‘‘(a) NATIONAL PRIORITY.—It shall be a na- base, a worldwide Web site, and a national equal to such recapture amount. For pur- tional priority, for the 5-year period begin- journal; and S2334 CONGRESSIONAL RECORD — SENATE March 19, 1998

‘‘(2) provide technical assistance regarding to pay only the startup and implementation ‘‘(c) CAPACITY BUILDING.— securing resources with respect to, and de- costs of effective, sustainable, coordinated, ‘‘(1) IN GENERAL.—The Director, through a signing and implementing, effective and and whole school dropout prevention pro- contract with a non-Federal entity, shall comprehensive school dropout prevention, grams that involve activities such as— conduct a capacity building and design ini- intervention, and reentry programs. ‘‘(1) professional development; tiative in order to increase the types of prov- ‘‘SEC. 5314. NATIONAL RECOGNITION PROGRAM. ‘‘(2) obtaining curricular materials; en strategies for dropout prevention on a ‘‘(a) IN GENERAL.—The Director shall carry ‘‘(3) release time for professional staff; and schoolwide level. out a national recognition program that rec- ‘‘(4) planning and research. ‘‘(2) NUMBER AND DURATION.— ognizes schools that have made extraor- ‘‘(b) INTENT OF CONGRESS.—It is the intent ‘‘(A) NUMBER.—The Director shall award dinary progress in lowering school dropout of Congress that the activities started or im- not more than 5 contracts under this sub- rates under which a public middle school or plemented under subsection (a) shall be con- section. secondary school from each State will be tinued with funding provided under part A of ‘‘(B) DURATION.—The Director shall award recognized. The Director shall use uniform title I of the Elementary and Secondary Edu- a contract under this section for a period of national guidelines that are developed by the cation Act of 1965 (20 U.S.C. 6311 et seq.). not more than 5 years. Director for the recognition program and ‘‘(c) NUMBER.—The State educational agen- cy shall award not more than 1,000 grants ‘‘(d) SUPPORT FOR EXISTING REFORM NET- shall recognize schools from nominations WORKS.— submitted by State educational agencies. under this subpart during the first year that the State receives an allotment under this ‘‘(1) IN GENERAL.—The Director shall pro- ‘‘(b) ELIGIBLE SCHOOLS.—The Director may vide appropriate support to eligible entities recognize any public middle school or sec- subpart, not more than 1,500 grants during the second such year, and not more than to enable the eligible entities to provide ondary school (including a charter school) training, materials, development, and staff that has implemented comprehensive re- 2,000 grants during the third such year. ‘‘(d) AMOUNT.— assistance to schools assisted under this sub- forms regarding the lowering of school drop- ‘‘(1) IN GENERAL.—Subject to subsection (e) part. out rates for all students at that school. and except as provided in paragraph (2), a ‘‘(2) DEFINITION OF ELIGIBLE ENTITY.—The ‘‘(c) SUPPORT.—The Director may make grant under this subpart shall be awarded— term ‘eligible entity’ means an entity that, monetary awards to schools recognized prior to the date of enactment of the Na- under this section, in amounts determined ‘‘(A) in the first year that a school receives a grant payment under this subpart, in an tional Dropout Prevention Act of 1998— by the Director. Amounts received under ‘‘(A) provided training, technical assist- this section shall be used for dissemination amount that is not less than $50,000 and not more than $100,000, based on factors such as— ance, and materials to 100 or more elemen- activities within the school district or na- tary schools or secondary schools; and tionally. ‘‘(i) school size; ‘‘(ii) costs of the model being implemented; ‘‘(B) developed and published a specific ‘‘Subpart 2—National School Dropout and educational program or design for use by the Prevention Initiative ‘‘(iii) local cost factors such as poverty schools. ‘‘SEC. 5321. FINDINGS. rates; ‘‘SEC. 5324. SELECTION OF SCHOOLS. ‘‘Congress finds that, in order to lower ‘‘(B) in the second such year, in an amount dropout rates and raise academic achieve- that is not less than 75 percent of the ‘‘(a) SCHOOL APPLICATION.— ment levels, improved and redesigned amount the school received under this sub- ‘‘(1) IN GENERAL.—Each school desiring a schools must— part in the first such year; grant under this subpart shall submit an ap- ‘‘(1) challenge all children to attain their ‘‘(C) in the third year, in an amount that is plication to the State educational agency at highest academic potential; and not less than 50 percent of the amount the such time, in such manner, and accompanied ‘‘(2) ensure that all students have substan- school received under this subpart in the by such information as the State educational tial and ongoing opportunities to— first such year; and agency may require. ‘‘(A) achieve high levels of academic and ‘‘(D) in each succeeding year in an amount ‘‘(2) CONTENTS.—Each application submit- technical skills; that is not less than 30 percent of the ted under paragraph (1) shall— ‘‘(B) prepare for college and careers; amount the school received under this sub- ‘‘(A) contain a certification from the local ‘‘(C) learn by doing; part in the first such year. educational agency serving the school that— ‘‘(D) work with teachers in small schools ‘‘(2) INCREASES.—The Director shall in- ‘‘(i) the school has the highest number or within schools; crease the amount awarded to a school under rates of school dropouts in the age group ‘‘(E) receive ongoing support from adult this subpart by 10 percent if the school cre- served by the local educational agency; mentors; ates smaller learning communities within ‘‘(ii) the local educational agency is com- ‘‘(F) access a wide variety of information the school and the creation is certified by mitted to providing ongoing operational sup- about careers and postsecondary education the State educational agency. port, for the school’s comprehensive reform and training; ‘‘(e) DURATION.—A grant under this subpart plan to address the problem of school drop- ‘‘(G) use technology to enhance and moti- shall be awarded for a period of 3 years, and outs, for a period of 5 years; and vate learning; and may be continued for a period of 2 additional ‘‘(iii) the local educational agency will ‘‘(H) benefit from strong links among mid- years if the State educational agency deter- support the plan, including— dle schools, secondary schools, and post- mines, based on the annual reports described ‘‘(I) release time for teacher training; secondary institutions. in section 5328(a), that significant progress ‘‘(II) efforts to coordinate activities for ‘‘SEC. 5322. PROGRAM AUTHORIZED. has been made in lowering the school drop- feeder schools; and ‘‘(a) ALLOTMENTS TO STATES.— out rate for students participating in the ‘‘(III) encouraging other schools served by ‘‘(1) IN GENERAL.—From the sum made program assisted under this subpart com- the local educational agency to participate available under section 5332(b) for a fiscal pared to students at similar schools who are in the plan; year the Secretary shall make an allotment not participating in the program. ‘‘(B) demonstrate that the faculty and ad- to each State in an amount that bears the ‘‘SEC. 5323. STRATEGIES AND ALLOWABLE MOD- ministration of the school have agreed to same relation to the sum as the amount the ELS. apply for assistance under this subpart, and State received under title I of the Elemen- ‘‘(a) STRATEGIES.—Each school receiving a provide evidence of the school’s willingness tary and Secondary Education Act of 1965 (20 grant under this subpart shall implement re- and ability to use the funds under this sub- U.S.C. 6301 et seq.) for the preceding fiscal search-based, sustainable, and widely rep- part, including providing an assurance of the year bears to the amount received by all licated, strategies for school dropout preven- support of 80 percent or more of the profes- States under such title for the preceding fis- tion and reentry that address the needs of an sional staff at the school; cal year. entire school population rather than a subset ‘‘(C) describe the instructional strategies ‘‘(2) DEFINITION OF STATE.—In this subpart, of students. The strategies may include— to be implemented, how the strategies will the term ‘‘State’’ means each of the several ‘‘(1) specific strategies for targeted pur- serve all students, and the effectiveness of States of the United States, the District of poses; and the strategies; Columbia, the Commonwealth of Puerto ‘‘(2) approaches such as breaking larger ‘‘(D) describe a budget and timeline for im- Rico, the United States Virgin Islands, schools down into smaller learning commu- plementing the strategies; Guam, American Samoa, the Commonwealth nities and other comprehensive reform ap- ‘‘(E) contain evidence of interaction with of the Northern Mariana Islands, the Repub- proaches, developing clear linkages to career an eligible entity described in section lic of the Marshall Islands, the Federated skills and employment, and addressing spe- 5323(d)(2); States of Micronesia, and the Republic of cific gatekeeper hurdles that often limit stu- ‘‘(F) contain evidence of coordination with Palau. dent retention and academic success. existing resources; ‘‘(b) GRANTS.—From amounts made avail- ‘‘(b) ALLOWABLE MODELS.—The Director ‘‘(G) provide an assurance that funds pro- able to a State under subsection (a), the shall annually establish and publish in the vided under this subpart will supplement and State educational agency may award grants Federal Register the principles, criteria, not supplant other Federal, State, and local to public middle schools or secondary models, and other parameters regarding the funds; schools, that have school dropout rates types of effective, proven program models ‘‘(H) describe how the activities to be as- which are in the highest 1⁄3 of all school drop- that are allowed to be used under this sub- sisted conform with an allowable model de- out rates in the State, to enable the schools part, based on existing research. scribed in section 5323(b); and March 19, 1998 CONGRESSIONAL RECORD — SENATE S2335 ‘‘(I) demonstrate that the school and local ‘‘SEC. 5327. SCHOOL DROPOUT RATE CALCULA- (2) by adding after section 218 (as redesig- educational agency have agreed to conduct a TION. nated by paragraph (1)) the following: ‘‘For purposes of calculating a school drop- schoolwide program under 1114. ‘‘OFFICE OF DROPOUT PREVENTION AND TATE GENCY EVIEW AND WARD out rate under this subpart, a school shall ‘‘(b) S A R A .— PROGRAM COMPLETION The State educational agency shall review use— applications and award grants to schools ‘‘(1) the annual event school dropout rate ‘‘SEC. 219. (a) ESTABLISHMENT.—There shall under subsection (a) according to a review by for students leaving a school in a single year be in the Department of Education an Office a panel of experts on school dropout preven- determined in accordance with the National of Dropout Prevention and Program Comple- tion. Center for Education Statistics’ Common tion (hereafter in this section referred to as ‘‘(c) CRITERIA.—The Director shall estab- Core of Data, if available; or the ‘Office’), to be administered by the Di- lish clear and specific selection criteria for ‘‘(2) in other cases, a standard method for rector of the Office of Dropout Prevention awarding grants to schools under this sub- calculating the school dropout rate as deter- and Program Completion. The Director of part. Such criteria shall be based on school mined by the State educational agency. the Office shall report directly to the Sec- dropout rates and other relevant factors for ‘‘SEC. 5328. REPORTING AND ACCOUNTABILITY. retary and shall perform such additional functions as the Secretary may prescribe. State educational agencies to use in deter- ‘‘(a) REPORTING.—In order to receive fund- mining the number of grants to award and ing under this subpart for a fiscal year after ‘‘(b) DUTIES.—The Director of the Office of the type of schools to be awarded grants. the first fiscal year a school receives funding Dropout Prevention and Program Comple- ‘‘(d) ELIGIBILITY.— under this subpart, the school shall provide, tion (hereafter in this section referred to as ‘‘(1) IN GENERAL.—A school is eligible to re- on an annual basis, to the Director a report the ‘Director’), through the Office, shall— ceive a grant under this subpart if the school regarding the status of the implementation ‘‘(1) help coordinate Federal, State, and is— of activities funded under this subpart, the local efforts to lower school dropout rates ‘‘(A) a public school— disaggregated outcome data for students at and increase program completion by middle ‘‘(i) that is eligible to receive assistance schools assisted under this subpart such as school, secondary school, and college stu- under part A of title I of the Elementary and dropout rates, and certification of progress dents; Secondary Education Act of 1965 (20 U.S.C. from the eligible entity whose strategies the ‘‘(2) recommend Federal policies, objec- 6311 et seq.), including a comprehensive sec- school is implementing. tives, and priorities to lower school dropout ondary school, a vocational or technical sec- ‘‘(b) ACCOUNTABILITY.—On the basis of the rates and increase program completion; ondary school, and a charter school; and reports submitted under subsection (a), the ‘‘(3) oversee the implementation of subpart ‘‘(ii)(I) that serves students 50 percent or Director shall evaluate the effect of the ac- 2 of part C of title V of the Elementary and more of whom are low-income individuals; or tivities assisted under this subpart on school Secondary Education Act of 1965; ‘‘(II) with respect to which the feeder dropout prevention compared to a control ‘‘(4) develop and implement the National schools that provide the majority of the in- group. School Dropout Prevention Strategy under coming students to the school serve students section 5312 of the Elementary and Second- ‘‘SEC. 5329. PROHIBITION ON TRACKING. 50 percent or more of whom are low-income ary Education Act of 1965; ‘‘(a) IN GENERAL.—A school shall be ineli- individuals; or ‘‘(5) annually prepare and submit to Con- gible to receive funding under this subpart ‘‘(B) is participating in a schoolwide pro- gress and the Secretary a national report de- for a fiscal year, if the school— gram under section 1114 during the grant pe- scribing efforts and recommended actions re- ‘‘(1) has in place a general education track; riod. garding school dropout prevention and pro- ‘‘(2) provides courses with significantly dif- ‘‘(2) OTHER SCHOOLS.—A private or paro- gram completion; ferent material and requirements to students chial school, an alternative school, or a ‘‘(6) recommend action to the Secretary at the same grade level; or school within a school, is not eligible to re- and the President, as appropriate, regarding ‘‘(3) fails to encourage all students to take ceive a grant under this subpart, but an al- school dropout prevention and program com- a core curriculum of courses. ternative school or school within a school pletion; and ‘‘(b) REGULATIONS.—The Secretary shall may be served under this subpart as part of promulgate regulations implementing sub- ‘‘(7) consult with and assist State and local a whole school reform effort within an entire section (a). governments regarding school dropout pre- school building. vention and program completion. ‘‘Subpart 3—Definitions; Authorization of ‘‘(e) COMMUNITY-BASED ORGANIZATIONS.—A ‘‘(c) SCOPE OF DUTIES.—The scope of the school that receives a grant under this sub- Appropriations Director’s duties under subsection (b) shall part may use the grant funds to secure nec- ‘‘SEC. 5331. DEFINITIONS. include examination of all Federal and non- essary services from a community-based or- ‘‘In this Act: Federal efforts related to— ganization, including private sector entities, ‘‘(1) DIRECTOR.—The term ‘‘Director’’ ‘‘(1) promoting program completion for if— means the Director of the Office of Dropout children attending middle school or second- ‘‘(1) the school approves the use; Prevention and Program Completion estab- ary school; ‘‘(2) the funds are used to provide school lished under section 219 of the General Edu- ‘‘(2) programs to obtain a secondary school dropout prevention and reentry activities re- cation Provisions Act. diploma or its recognized equivalent (includ- lated to schoolwide efforts; and ‘‘(2) LOW-INCOME.—The term ‘‘low-income’’, ing general equivalency diploma (GED) pro- ‘‘(3) the community-based organization has used with respect to an individual, means an grams), or college degree programs; and demonstrated the organization’s ability to individual determined to be low-income in ‘‘(3) reentry programs for individuals aged provide effective services as described in sec- accordance with measures described in sec- 12 to 24 who are out of school. tion 107(a) of the Job Training Partnership tion 1113(a)(5) of the Elementary and Second- ‘‘(d) DETAILING.—In carrying out the Direc- Act (29 U.S.C. 1517(a)). ary Education Act of 1965 (20 U.S.C. tor’s duties under this section, the Director ‘‘(f) COORDINATION.—Each school that re- 6313(a)(5)). may request the head of any Federal depart- ceives a grant under this subpart shall co- ‘‘(3) SCHOOL DROPOUT.—The term ‘‘school ment or agency to detail personnel who are ordinate the activities assisted under this dropout’’ has the meaning given the term in engaged in school dropout prevention activi- subpart with other Federal programs, such section 4(17) of the School-to-Work Opportu- ties to another Federal department or agen- as programs assisted under chapter 1 of sub- nities Act of 1994 (20 U.S.C. 6103(17)). cy in order to implement the National part 2 of part A of title IV of the Higher Edu- ‘‘SEC. 5332. AUTHORIZATION OF APPROPRIA- School Dropout Prevention Strategy.’’. cation Act of 1965 (20 U.S.C. 1070a–11 et seq.) TIONS. (d) STATE RESPONSIBILITIES.—Title XIV of and the School-to-Work Opportunities Act of ‘‘(a) SUBPART 1.—There are authorized to the Elementary and Secondary Education 1994 (20 U.S.C. 6101 et seq.). be appropriated to carry out subpart 1, Act of 1965 (20 U.S.C. 8801 et seq.) is amended ‘‘SEC. 5325. DISSEMINATION ACTIVITIES. $5,000,000 for fiscal year 1999 and such sums by adding at the end the following: ‘‘Each school that receives a grant under as may be necessary for each of the 4 suc- ‘‘PART I—DROPOUT PREVENTION this subpart shall provide information and ceeding fiscal years. technical assistance to other schools within ‘‘(b) SUBPART 2.—There are authorized to ‘‘SEC. 14851. DROPOUT PREVENTION. the school district, including presentations, be appropriated to carry out subpart 2, ‘‘In order to receive any assistance under document-sharing, and joint staff develop- $145,000,000 for fiscal year 1999 and such sums this Act, a State educational agency shall ment. as may be necessary for each of the 4 suc- comply with the following provisions regard- ‘‘SEC. 5326. PROGRESS INCENTIVES. ceeding fiscal years, of which— ing school dropouts: ‘‘Notwithstanding any other provision of ‘‘(1) $125,000,000 shall be available to carry ‘‘(1) UNIFORM DATA COLLECTION.—Within 1 law, each local educational agency that re- out section 5322; and year after the date of enactment of the Na- ceives funds under title I of the Elementary ‘‘(2) $20,000,000 shall be available to carry tional Dropout Prevention Act of 1998, a and Secondary Education Act of 1965 (20 out section 5323.’’. State educational agency shall report to the U.S.C. 6301 et seq.) shall use such funding to (c) OFFICE OF DROPOUT PREVENTION AND Secretary and statewide, all school district provide assistance to schools served by the PROGRAM COMPLETION.—Title II of the De- and school data regarding school dropout agency that have not made progress toward partment of Education Organization Act (20 rates in the State, and demographic break- lowering school dropout rates after receiving U.S.C. 3411) is amended— downs, according to procedures that conform assistance under this subpart for 2 fiscal (1) by redesignating section 216 (as added with the National Center for Education Sta- years. by Public Law 103–227) as section 218; and tistics’ Common Core of Data. S2336 CONGRESSIONAL RECORD — SENATE March 19, 1998

‘‘(2) ATTENDANCE-NEUTRAL FUNDING POLI- ‘‘(c) AVAILABLE RESOURCES.—The plan ‘‘(B) prepare for college and careers; CIES.—Within 2 years after the date of enact- shall also describe the ways in which State ‘‘(C) learn by doing; ment of the National Dropout Prevention and local agencies can implement effective ‘‘(D) work with teachers in small schools Act of 1998, a State educational agency shall school dropout prevention programs using within schools; develop and implement education funding funds from a variety of Federal programs, in- ‘‘(E) receive ongoing support from adult formula policies for public schools that pro- cluding the programs under title I of the Ele- mentors; vide appropriate incentives to retain stu- mentary and Secondary Education Act of ‘‘(F) access a wide variety of information dents in school throughout the school year, 1965 (20 U.S.C. 6301 et seq.) and the School-to- about careers and postsecondary education such as— Work Opportunities Act of 1994 (20 U.S.C. and training; ‘‘(A) a student count methodology that 6101 et seq.). ‘‘(G) use technology to enhance and moti- does not determine annual budgets based on ‘‘(d) SCOPE.—The plan will address all Fed- vate learning; and attendance on a single day early in the aca- eral programs with school dropout preven- ‘‘(H) benefit from strong links among mid- demic year; and tion or school reentry elements or objec- dle schools, secondary schools, and post- ‘‘(B) specific incentives for retaining en- tives, programs under chapter 1 of subpart 2 secondary institutions. of part A of title IV of the Higher Education rolled students throughout each year. ‘‘SEC. 5322. PROGRAM AUTHORIZED. Act of 1965 (20 U.S.C. 1070a–11 et seq.), title I ‘‘(3) SUSPENSION AND EXPULSION POLICIES.— ‘‘(a) ALLOTMENTS TO STATES.— of the Elementary and Secondary Education Within 2 years after the date of enactment of ‘‘(1) IN GENERAL.—From the sum made Act of 1965 (20 U.S.C. 6301 et seq.), the the National Dropout Prevention Act of 1998, available under section 5332(b) for a fiscal School-to-Work Opportunities Act of 1994 (20 a State educational agency shall develop year the Secretary shall make an allotment U.S.C. 6101 et seq.), and part B of title IV of uniform, long-term suspension and expulsion to each State in an amount that bears the the Job Training Partnership Act (29 U.S.C. policies for serious infractions resulting in 1691 et seq.), and other programs. same relation to the sum as the amount the more than 10 days of exclusion from school State received under title I of the Elemen- ‘‘SEC. 5313. NATIONAL CLEARINGHOUSE. per academic year so that similar violations tary and Secondary Education Act of 1965 (20 ‘‘Not later than 6 months after the date of result in similar penalties.’’. U.S.C. 6301 et seq.) for the preceding fiscal enactment of the National Dropout Preven- year bears to the amount received by all tion Act of 1998, the Director shall establish AMENDMENT NO. 2041 a national clearinghouse on effective school States under such title for the preceding fis- At the end, add the following: dropout prevention, intervention and reentry cal year. ‘‘(2) DEFINITION OF STATE.—In this subpart, TITLE ll—DROPOUT PREVENTION AND programs. The clearinghouse shall be estab- the term ‘‘State’’ means each of the several STATE RESPONSIBILITIES lished through a competitive grant or con- States of the United States, the District of SEC. ll01. SHORT TITLE. tract awarded to an organization with a demonstrated capacity to provide technical Columbia, the Commonwealth of Puerto This title may be cited as the ‘‘National Rico, the United States Virgin Islands, Dropout Prevention Act of 1998’’. assistance and disseminate information in the area of school dropout prevention, inter- Guam, American Samoa, the Commonwealth Subtitle A—Dropout Prevention vention, and reentry programs. The clearing- of the Northern Mariana Islands, the Repub- SEC. ll11. DROPOUT PREVENTION. house shall— lic of the Marshall Islands, the Federated Part C of title V of the Elementary and ‘‘(1) collect and disseminate to educators, States of Micronesia, and the Republic of Secondary Education Act of 1965 (20 U.S.C. parents, and policymakers information on Palau. 7261 et seq.) is amended to read as follows: research, effective programs, best practices, ‘‘(b) GRANTS.—From amounts made avail- able to a State under subsection (a), the and available Federal resources with respect ‘‘PART C—ASSISTANCE TO ADDRESS State educational agency may award grants to school dropout prevention, intervention, SCHOOL DROPOUT PROBLEMS to public middle schools or secondary and reentry programs, including dissemina- ‘‘Subpart 1—Coordinated National Strategy schools, that have school dropout rates tion by an electronically accessible data- 1 ‘‘SEC. 5311. NATIONAL ACTIVITIES. which are in the highest ⁄3 of all school drop- base, a worldwide Web site, and a national out rates in the State, to enable the schools ‘‘(a) NATIONAL PRIORITY.—It shall be a na- journal; and to pay only the startup and implementation tional priority, for the 5-year period begin- ‘‘(2) provide technical assistance regarding ning on the date of enactment of the Na- costs of effective, sustainable, coordinated, securing resources with respect to, and de- and whole school dropout prevention pro- tional Dropout Prevention Act of 1998, to signing and implementing, effective and grams that involve activities such as— lower the school dropout rate, and increase comprehensive school dropout prevention, ‘‘(1) professional development; school completion, for middle school and sec- intervention, and reentry programs. ‘‘(2) obtaining curricular materials; ondary school students in accordance with ‘‘SEC. 5314. NATIONAL RECOGNITION PROGRAM. ‘‘(3) release time for professional staff; and Federal law. As part of this priority, all Fed- ‘‘(a) IN GENERAL.—The Director shall carry ‘‘(4) planning and research. eral agencies that carry out activities that out a national recognition program that rec- ‘‘(b) INTENT OF CONGRESS.—It is the intent serve students at risk of dropping out of ognizes schools that have made extraor- of Congress that the activities started or im- school or that are intended to help address dinary progress in lowering school dropout plemented under subsection (a) shall be con- the school dropout problem shall make rates under which a public middle school or tinued with funding provided under part A of school dropout prevention a top priority in secondary school from each State will be title I of the Elementary and Secondary Edu- the agencies’ funding priorities during the 5- recognized. The Director shall use uniform cation Act of 1965 (20 U.S.C. 6311 et seq.). year period. national guidelines that are developed by the ‘‘(c) NUMBER.—The State educational agen- ‘‘(b) ENHANCED DATA COLLECTION.—The Director for the recognition program and cy shall award not more than 1,000 grants Secretary shall collect systematic data on shall recognize schools from nominations under this subpart during the first year that the participation of different racial and eth- submitted by State educational agencies. the State receives an allotment under this nic groups (including migrant and limited ‘‘(b) ELIGIBLE SCHOOLS.—The Director may subpart, not more than 1,500 grants during English proficient students) in all Federal recognize any public middle school or sec- the second such year, and not more than programs. ondary school (including a charter school) 2,000 grants during the third such year. ‘‘SEC. 5312. NATIONAL SCHOOL DROPOUT PRE- that has implemented comprehensive re- ‘‘(d) AMOUNT.— VENTION STRATEGY. forms regarding the lowering of school drop- ‘‘(1) IN GENERAL.—Subject to subsection (e) ‘‘(a) PLAN.—The Director shall develop, im- out rates for all students at that school. and except as provided in paragraph (2), a plement, and monitor an interagency plan ‘‘(c) SUPPORT.—The Director may make grant under this subpart shall be awarded— (in this section referred to as the ‘‘plan’’) to monetary awards to schools recognized ‘‘(A) in the first year that a school receives assess the coordination, use of resources, and under this section, in amounts determined a grant payment under this subpart, in an availability of funding under Federal law by the Director. Amounts received under amount that is not less than $50,000 and not that can be used to address school dropout this section shall be used for dissemination more than $100,000, based on factors such as— prevention, or middle school or secondary activities within the school district or na- ‘‘(i) school size; school reentry. The plan shall be completed tionally. ‘‘(ii) costs of the model being implemented; and transmitted to the Secretary and Con- ‘‘Subpart 2—National School Dropout and gress not later than 180 days after the first Prevention Initiative ‘‘(iii) local cost factors such as poverty Director is appointed. ‘‘SEC. 5321. FINDINGS. rates; ‘‘(b) COORDINATION.—The plan shall address ‘‘Congress finds that, in order to lower ‘‘(B) in the second such year, in an amount inter- and intra-agency program coordina- dropout rates and raise academic achieve- that is not less than 75 percent of the tion issues at the Federal level with respect ment levels, improved and redesigned amount the school received under this sub- to school dropout prevention and middle schools must— part in the first such year; school and secondary school reentry, assess ‘‘(1) challenge all children to attain their ‘‘(C) in the third year, in an amount that is the targeting of existing Federal services to highest academic potential; and not less than 50 percent of the amount the students who are most at risk of dropping ‘‘(2) ensure that all students have substan- school received under this subpart in the out of school, and the cost-effectiveness of tial and ongoing opportunities to— first such year; and various programs and approaches used to ad- ‘‘(A) achieve high levels of academic and ‘‘(D) in each succeeding year in an amount dress school dropout prevention. technical skills; that is not less than 30 percent of the March 19, 1998 CONGRESSIONAL RECORD — SENATE S2337

amount the school received under this sub- ‘‘(i) the school has the highest number or ‘‘(e) COMMUNITY-BASED ORGANIZATIONS.—A part in the first such year. rates of school dropouts in the age group school that receives a grant under this sub- ‘‘(2) INCREASES.—The Director shall in- served by the local educational agency; part may use the grant funds to secure nec- crease the amount awarded to a school under ‘‘(ii) the local educational agency is com- essary services from a community-based or- this subpart by 10 percent if the school cre- mitted to providing ongoing operational sup- ganization, including private sector entities, ates smaller learning communities within port, for the school’s comprehensive reform if— the school and the creation is certified by plan to address the problem of school drop- ‘‘(1) the school approves the use; the State educational agency. outs, for a period of 5 years; and ‘‘(2) the funds are used to provide school ‘‘(e) DURATION.—A grant under this subpart ‘‘(iii) the local educational agency will dropout prevention and reentry activities re- shall be awarded for a period of 3 years, and support the plan, including— lated to schoolwide efforts; and may be continued for a period of 2 additional ‘‘(I) release time for teacher training; ‘‘(3) the community-based organization has years if the State educational agency deter- ‘‘(II) efforts to coordinate activities for demonstrated the organization’s ability to mines, based on the annual reports described feeder schools; and provide effective services as described in sec- in section 5328(a), that significant progress ‘‘(III) encouraging other schools served by tion 107(a) of the Job Training Partnership has been made in lowering the school drop- the local educational agency to participate Act (29 U.S.C. 1517(a)). out rate for students participating in the in the plan; ‘‘(f) COORDINATION.—Each school that re- program assisted under this subpart com- ‘‘(B) demonstrate that the faculty and ad- ceives a grant under this subpart shall co- pared to students at similar schools who are ministration of the school have agreed to ordinate the activities assisted under this not participating in the program. apply for assistance under this subpart, and subpart with other Federal programs, such ‘‘SEC. 5323. STRATEGIES AND ALLOWABLE MOD- provide evidence of the school’s willingness as programs assisted under chapter 1 of sub- ELS. and ability to use the funds under this sub- part 2 of part A of title IV of the Higher Edu- ‘‘(a) STRATEGIES.—Each school receiving a part, including providing an assurance of the cation Act of 1965 (20 U.S.C. 1070a–11 et seq.) grant under this subpart shall implement re- support of 80 percent or more of the profes- and the School-to-Work Opportunities Act of search-based, sustainable, and widely rep- sional staff at the school; 1994 (20 U.S.C. 6101 et seq.). licated, strategies for school dropout preven- ‘‘(C) describe the instructional strategies ‘‘SEC. 5325. DISSEMINATION ACTIVITIES. tion and reentry that address the needs of an to be implemented, how the strategies will ‘‘Each school that receives a grant under entire school population rather than a subset serve all students, and the effectiveness of this subpart shall provide information and of students. The strategies may include— the strategies; technical assistance to other schools within ‘‘(1) specific strategies for targeted pur- ‘‘(D) describe a budget and timeline for im- the school district, including presentations, poses; and plementing the strategies; document-sharing, and joint staff develop- ‘‘(2) approaches such as breaking larger ‘‘(E) contain evidence of interaction with ment. schools down into smaller learning commu- an eligible entity described in section nities and other comprehensive reform ap- ‘‘SEC. 5326. PROGRESS INCENTIVES. 5323(d)(2); ‘‘Notwithstanding any other provision of proaches, developing clear linkages to career ‘‘(F) contain evidence of coordination with law, each local educational agency that re- skills and employment, and addressing spe- existing resources; ceives funds under title I of the Elementary cific gatekeeper hurdles that often limit stu- ‘‘(G) provide an assurance that funds pro- and Secondary Education Act of 1965 (20 dent retention and academic success. vided under this subpart will supplement and ‘‘(b) ALLOWABLE MODELS.—The Director U.S.C. 6301 et seq.) shall use such funding to not supplant other Federal, State, and local provide assistance to schools served by the shall annually establish and publish in the funds; Federal Register the principles, criteria, agency that have not made progress toward ‘‘(H) describe how the activities to be as- lowering school dropout rates after receiving models, and other parameters regarding the sisted conform with an allowable model de- types of effective, proven program models assistance under this subpart for 2 fiscal scribed in section 5323(b); and years. that are allowed to be used under this sub- ‘‘(I) demonstrate that the school and local part, based on existing research. ‘‘SEC. 5327. SCHOOL DROPOUT RATE CALCULA- educational agency have agreed to conduct a ‘‘(c) CAPACITY BUILDING.— TION. schoolwide program under 1114. ‘‘(1) IN GENERAL.—The Director, through a ‘‘For purposes of calculating a school drop- ‘‘(b) STATE AGENCY REVIEW AND AWARD.— out rate under this subpart, a school shall contract with a non-Federal entity, shall The State educational agency shall review conduct a capacity building and design ini- use— applications and award grants to schools ‘‘(1) the annual event school dropout rate tiative in order to increase the types of prov- under subsection (a) according to a review by for students leaving a school in a single year en strategies for dropout prevention on a a panel of experts on school dropout preven- determined in accordance with the National schoolwide level. tion. Center for Education Statistics’ Common ‘‘(2) NUMBER AND DURATION.— ‘‘(c) CRITERIA.—The Director shall estab- ‘‘(A) NUMBER.—The Director shall award lish clear and specific selection criteria for Core of Data, if available; or not more than 5 contracts under this sub- awarding grants to schools under this sub- ‘‘(2) in other cases, a standard method for section. part. Such criteria shall be based on school calculating the school dropout rate as deter- ‘‘(B) DURATION.—The Director shall award dropout rates and other relevant factors for mined by the State educational agency. a contract under this section for a period of State educational agencies to use in deter- ‘‘SEC. 5328. REPORTING AND ACCOUNTABILITY. not more than 5 years. mining the number of grants to award and ‘‘(a) REPORTING.—In order to receive fund- ‘‘(d) SUPPORT FOR EXISTING REFORM NET- the type of schools to be awarded grants. ing under this subpart for a fiscal year after WORKS.— ‘‘(d) ELIGIBILITY.— the first fiscal year a school receives funding ‘‘(1) IN GENERAL.—The Director shall pro- ‘‘(1) IN GENERAL.—A school is eligible to re- under this subpart, the school shall provide, vide appropriate support to eligible entities ceive a grant under this subpart if the school on an annual basis, to the Director a report to enable the eligible entities to provide is— regarding the status of the implementation training, materials, development, and staff ‘‘(A) a public school— of activities funded under this subpart, the assistance to schools assisted under this sub- ‘‘(i) that is eligible to receive assistance disaggregated outcome data for students at part. under part A of title I of the Elementary and schools assisted under this subpart such as ‘‘(2) DEFINITION OF ELIGIBLE ENTITY.—The Secondary Education Act of 1965 (20 U.S.C. dropout rates, and certification of progress term ‘eligible entity’ means an entity that, 6311 et seq.), including a comprehensive sec- from the eligible entity whose strategies the prior to the date of enactment of the Na- ondary school, a vocational or technical sec- school is implementing. tional Dropout Prevention Act of 1998— ondary school, and a charter school; and ‘‘(b) ACCOUNTABILITY.—On the basis of the ‘‘(A) provided training, technical assist- ‘‘(ii)(I) that serves students 50 percent or reports submitted under subsection (a), the ance, and materials to 100 or more elemen- more of whom are low-income individuals; or Director shall evaluate the effect of the ac- tary schools or secondary schools; and ‘‘(II) with respect to which the feeder tivities assisted under this subpart on school ‘‘(B) developed and published a specific schools that provide the majority of the in- dropout prevention compared to a control educational program or design for use by the coming students to the school serve students group. schools. 50 percent or more of whom are low-income ‘‘SEC. 5329. PROHIBITION ON TRACKING. ‘‘SEC. 5324. SELECTION OF SCHOOLS. individuals; or ‘‘(a) IN GENERAL.—A school shall be ineli- ‘‘(a) SCHOOL APPLICATION.— ‘‘(B) is participating in a schoolwide pro- gible to receive funding under this subpart ‘‘(1) IN GENERAL.—Each school desiring a gram under section 1114 during the grant pe- for a fiscal year, if the school— grant under this subpart shall submit an ap- riod. ‘‘(1) has in place a general education track; plication to the State educational agency at ‘‘(2) OTHER SCHOOLS.—A private or paro- ‘‘(2) provides courses with significantly dif- such time, in such manner, and accompanied chial school, an alternative school, or a ferent material and requirements to students by such information as the State educational school within a school, is not eligible to re- at the same grade level; or agency may require. ceive a grant under this subpart, but an al- ‘‘(3) fails to encourage all students to take ‘‘(2) CONTENTS.—Each application submit- ternative school or school within a school a core curriculum of courses. ted under paragraph (1) shall— may be served under this subpart as part of ‘‘(b) REGULATIONS.—The Secretary shall ‘‘(A) contain a certification from the local a whole school reform effort within an entire promulgate regulations implementing sub- educational agency serving the school that— school building. section (a). S2338 CONGRESSIONAL RECORD — SENATE March 19, 1998

‘‘Subpart 3—Definitions; Authorization of ‘‘(c) SCOPE OF DUTIES.—The scope of the plies, computer equipment (including related Appropriations Director’s duties under subsection (b) shall software and services), and other equipment ‘‘SEC. 5331. DEFINITIONS. include examination of all Federal and non- which are incurred in connection with the ‘‘In this Act: Federal efforts related to— enrollment or attendance of the designated ‘‘(1) DIRECTOR.—The term ‘‘Director’’ ‘‘(1) promoting program completion for beneficiary of the trust as an elementary or means the Director of the Office of Dropout children attending middle school or second- secondary school student at a public school, Prevention and Program Completion estab- ary school; or lished under section 219 of the General Edu- ‘‘(2) programs to obtain a secondary school ‘‘(ii) expenses for room and board, uni- cation Provisions Act. diploma or its recognized equivalent (includ- forms, transportation, and supplementary ‘‘(2) LOW-INCOME.—The term ‘‘low-income’’, ing general equivalency diploma (GED) pro- items and services (including extended day used with respect to an individual, means an grams), or college degree programs; and programs) which are required or provided by individual determined to be low-income in ‘‘(3) reentry programs for individuals aged a public school in connection with such en- accordance with measures described in sec- 12 to 24 who are out of school. rollment or attendance. tion 1113(a)(5) of the Elementary and Second- ‘‘(d) DETAILING.—In carrying out the Direc- ‘‘(B) SCHOOL.—The term ‘school’ means any ary Education Act of 1965 (20 U.S.C. tor’s duties under this section, the Director public school which provides elementary 6313(a)(5)). may request the head of any Federal depart- education or secondary education (kinder- ‘‘(3) SCHOOL DROPOUT.—The term ‘‘school ment or agency to detail personnel who are garten through grade 12), as determined dropout’’ has the meaning given the term in engaged in school dropout prevention activi- under State law.’’ section 4(17) of the School-to-Work Opportu- ties to another Federal department or agen- nities Act of 1994 (20 U.S.C. 6103(17)). cy in order to implement the National AMENDMENT NO. 2043 School Dropout Prevention Strategy.’’. ‘‘SEC. 5332. AUTHORIZATION OF APPROPRIA- On page 3, beginning with line 22, strike all TIONS. Subtitle B—State Responsibilities through page 5, line 6, and insert: ‘‘(a) SUBPART 1.—There are authorized to be appropriated to carry out subpart 1, SEC. ll21. STATE RESPONSIBILITIES. ‘‘(4) QUALIFIED ELEMENTARY AND SECONDARY $5,000,000 for fiscal year 1999 and such sums Title XIV of the Elementary and Second- EDUCATION EXPENSES.— as may be necessary for each of the 4 suc- ary Education Act of 1965 (20 U.S.C. 8801 et ‘‘(A) IN GENERAL.—The term ‘qualified ele- ceeding fiscal years. seq.) is amended by adding at the end the fol- mentary and secondary education expenses’ ‘‘(b) SUBPART 2.—There are authorized to lowing: means— be appropriated to carry out subpart 2, ‘‘PART I—DROPOUT PREVENTION ‘‘(i) expenses for tuition, fees, academic tu- $145,000,000 for fiscal year 1999 and such sums toring, special needs services, books, sup- as may be necessary for each of the 4 suc- ‘‘SEC. 14851. DROPOUT PREVENTION. plies, computer equipment (including related ceeding fiscal years, of which— ‘‘In order to receive any assistance under software and services), and other equipment ‘‘(1) $125,000,000 shall be available to carry this Act, a State educational agency shall which are incurred in connection with the out section 5322; and comply with the following provisions regard- enrollment or attendance of the designated ‘‘(2) $20,000,000 shall be available to carry ing school dropouts: beneficiary of the trust as an elementary or out section 5323.’’. ‘‘(1) UNIFORM DATA COLLECTION.—Within 1 secondary school student at a public school, SEC. ll12. OFFICE OF DROPOUT PREVENTION year after the date of enactment of the Na- or AND PROGRAM COMPLETION. tional Dropout Prevention Act of 1998, a ‘‘(ii) expenses for room and board, uni- Title II of the Department of Education State educational agency shall report to the forms, transportation, and supplementary Organization Act (20 U.S.C. 3411) is amend- Secretary and statewide, all school district items and services (including extended day ed— and school data regarding school dropout programs) which are required or provided by (1) by redesignating section 216 (as added rates in the State, and demographic break- a public school in connection with such en- by Public Law 103–227) as section 218; and downs, according to procedures that conform rollment or attendance. (2) by adding after section 218 (as redesig- with the National Center for Education Sta- ‘‘(B) SPECIAL RULE FOR HOMESCHOOLING.— nated by paragraph (1)) the following: tistics’ Common Core of Data. Such term shall include expenses described ‘‘OFFICE OF DROPOUT PREVENTION AND ‘‘(2) ATTENDANCE-NEUTRAL FUNDING POLI- in subparagraph (A)(i) in connection with PROGRAM COMPLETION CIES.—Within 2 years after the date of enact- education provided by homeschooling if the ment of the National Dropout Prevention ‘‘SEC. 219. (a) ESTABLISHMENT.—There shall requirements of any applicable State or local be in the Department of Education an Office Act of 1998, a State educational agency shall law are met with respect to such education. of Dropout Prevention and Program Comple- develop and implement education funding ‘‘(C) SCHOOL.—The term ‘school’ means any tion (hereafter in this section referred to as formula policies for public schools that pro- public school which provides elementary the ‘Office’), to be administered by the Di- vide appropriate incentives to retain stu- education or secondary education (kinder- rector of the Office of Dropout Prevention dents in school throughout the school year, garten through grade 12), as determined and Program Completion. The Director of such as— under State law.’’ the Office shall report directly to the Sec- ‘‘(A) a student count methodology that does not determine annual budgets based on retary and shall perform such additional AMENDMENT NO. 2044 functions as the Secretary may prescribe. attendance on a single day early in the aca- ‘‘(b) DUTIES.—The Director of the Office of demic year; and Strike section 101 and insert the following: Dropout Prevention and Program Comple- ‘‘(B) specific incentives for retaining en- SEC. 101. MODIFICATIONS TO EDUCATION INDI- tion (hereafter in this section referred to as rolled students throughout each year. VIDUAL RETIREMENT ACCOUNTS. the ‘Director’), through the Office, shall— ‘‘(3) SUSPENSION AND EXPULSION POLICIES.— (a) MAXIMUM ANNUAL CONTRIBUTIONS.— ‘‘(1) help coordinate Federal, State, and Within 2 years after the date of enactment of (1) IN GENERAL.—Section 530(b)(1)(A)(iii) local efforts to lower school dropout rates the National Dropout Prevention Act of 1998, (defining education individual retirement ac- and increase program completion by middle a State educational agency shall develop count) is amended by striking ‘‘$500’’ and in- school, secondary school, and college stu- uniform, long-term suspension and expulsion serting ‘‘the contribution limit for such tax- dents; policies for serious infractions resulting in able year’’. ‘‘(2) recommend Federal policies, objec- more than 10 days of exclusion from school (2) CONTRIBUTION LIMIT.—Section 530(b) (re- tives, and priorities to lower school dropout per academic year so that similar violations lating to definitions and special rules) is rates and increase program completion; result in similar penalties.’’. amended by adding at the end the following ‘‘(3) oversee the implementation of subpart new paragraph: ‘‘(4) CONTRIBUTION LIMIT.—The term ‘con- 2 of part C of title V of the Elementary and KENNEDY AMENDMENTS NOS. 2042– Secondary Education Act of 1965; tribution limit’ means $500 ($1,500 in the case ‘‘(4) develop and implement the National 2047 of any taxable year beginning after Decem- School Dropout Prevention Strategy under (Ordered to lie on the table.) ber 31, 1998, and ending before January 1, section 5312 of the Elementary and Second- Mr. KENNEDY submitted six amend- 2003).’’ ary Education Act of 1965; ments intended to be proposed by him (3) CONFORMING AMENDMENTS.— (A) Section 530(d)(4)(C) is amended by ‘‘(5) annually prepare and submit to Con- to the bill, H.R. 2646, supr; as follows: gress and the Secretary a national report de- striking ‘‘$500’’ and inserting ‘‘the contribu- scribing efforts and recommended actions re- AMENDMENT NO. 2042 tion limit for such taxable year’’. garding school dropout prevention and pro- On page 3, beginning with line 22, strike all (B) Section 4973(e)(1)(A) is amended by gram completion; through page 5, line 6, and insert: striking ‘‘$500’’ and inserting ‘‘the contribu- ‘‘(6) recommend action to the Secretary ‘‘(4) QUALIFIED ELEMENTARY AND SECONDARY tion limit (as defined in section 530(b)(5)) for and the President, as appropriate, regarding EDUCATION EXPENSES.— such taxable year’’. school dropout prevention and program com- ‘‘(A) IN GENERAL.—The term ‘qualified ele- (b) WAIVER OF AGE LIMITATIONS FOR CHIL- pletion; and mentary and secondary education expenses’ DREN WITH SPECIAL NEEDS.—Section 530(b)(1) ‘‘(7) consult with and assist State and local means— (defining education individual retirement ac- governments regarding school dropout pre- ‘‘(i) expenses for tuition, fees, academic tu- count) is amended by adding at the end the vention and program completion. toring, special needs services, books, sup- following flush sentence: March 19, 1998 CONGRESSIONAL RECORD — SENATE S2339

‘‘The age limitations in the preceding sen- AMENDMENT NO. 2045 ‘‘(9) EXTENSION OF PARAGRAPH (2)(B) TO tence shall not apply to any designated bene- Strike section 101 and insert the following: QUALIFIED STATE TUITION PROGRAMS AND EDU- ficiary with special needs (as determined SEC. 101. MODIFICATIONS TO EDUCATION INDI- CATIONAL INDIVIDUAL RETIREMENT AC- under regulations prescribed by the Sec- VIDUAL RETIREMENT ACCOUNTS. COUNTS.—Notwithstanding any other provi- retary).’’ (a) MAXIMUM ANNUAL CONTRIBUTIONS.— sion of this subsection, paragraph (2)(B) shall (c) CORPORATIONS PERMITTED TO CONTRIB- (1) IN GENERAL.—Section 530(b)(1)(A)(iii) apply to amounts received under a qualified UTE TO ACCOUNTS.—Section 530(c)(1) (relating (defining education individual retirement ac- State tuition program (as defined in section to reduction in permitted contributions count) is amended by striking ‘‘$500’’ and in- 529(b)) or under an education individual re- based on adjusted gross income) is amended serting ‘‘the contribution limit for such tax- tirement account (as defined in section by striking ‘‘The maximum amount which a able year’’. 530(b)). The rule of paragraph (8)(B) shall contributor’’ and inserting ‘‘In the case of a (2) CONTRIBUTION LIMIT.—Section 530(b) (re- apply for purposes of this paragraph.’’ contributor who is an individual, the maxi- lating to definitions and special rules) is (3) Section 530(d)(4)(B) (relating to excep- mum amount the contributor’’. amended by adding at the end the following tions) is amended by striking ‘‘or’’ at the end (d) NO DOUBLE BENEFIT.—Section 530(d)(2) new paragraph: of clause (ii), by striking the period at the (relating to distributions for qualified edu- ‘‘(4) CONTRIBUTION LIMIT.—The term ‘con- end of clause (iii) and inserting ‘‘, or’’, and cation expenses) is amended by adding at the tribution limit’ means $500 ($1,000 in the case by adding at the end the following new end the following new subparagraph: of any taxable year beginning after Decem- clause: ‘‘(D) DISALLOWANCE OF EXCLUDED AMOUNTS ber 31, 1998, and ending before January 1, ‘‘(iv) an amount which is includible in AS CREDIT OR DEDUCTION.—No deduction or 2003).’’ gross income solely because the taxpayer credit shall be allowed to the taxpayer under (3) CONFORMING AMENDMENTS.— elected under paragraph (2)(C) to waive the any other section of this chapter for any (A) Section 530(d)(4)(C) is amended by application of paragraph (2) for the taxable qualified education expenses to the extent striking ‘‘$500’’ and inserting ‘‘the contribu- year.’’ taken into account in determining the tion limit for such taxable year’’. (f) EFFECTIVE DATES.— amount of the exclusion under this para- (B) Section 4973(e)(1)(A) is amended by (1) IN GENERAL.—Except as provided in graph.’’ striking ‘‘$500’’ and inserting ‘‘the contribu- paragraph (2), the amendments made by this (e) TECHNICAL CORRECTIONS.— tion limit (as defined in section 530(b)(5)) for section shall apply to taxable years begin- (1)(A) Section 530(b)(1)(E) (defining edu- such taxable year’’. ning after December 31, 1998. (2) TECHNICAL CORRECTIONS.—The amend- cation individual retirement account) is (b) WAIVER OF AGE LIMITATIONS FOR CHIL- ments made by subsection (e) shall take ef- amended to read as follows: DREN WITH SPECIAL NEEDS.—Section 530(b)(1) ‘‘(E) Any balance to the credit of the des- (defining education individual retirement ac- fect as if included in the amendments made ignated beneficiary on the date on which the count) is amended by adding at the end the by section 213 of the Taxpayer Relief Act of beneficiary attains age 30 shall be distrib- following flush sentence: 1997. uted within 30 days after such date to the ‘‘The age limitations in the preceding sen- AMENDMENT NO. 2046 beneficiary or, if the beneficiary dies before tence shall not apply to any designated bene- attaining age 30, shall be distributed within ficiary with special needs (as determined On page 10, line 17, strike ‘‘1998’’ and insert 30 days after the date of death to the estate under regulations prescribed by the Sec- ‘‘1998, except that such amendments shall of such beneficiary.’’ retary).’’ only take effect to the extent that— ‘‘(A) contributions to education individual (B) Section 530(d) (relating to tax treat- (c) CORPORATIONS PERMITTED TO CONTRIB- retirement accounts or qualified elementary ment of distributions) is amended by adding UTE TO ACCOUNTS.—Section 530(c)(1) (relating at the end the following new paragraph: to reduction in permitted contributions and secondary education expenses are— ‘‘(8) DEEMED DISTRIBUTION ON REQUIRED DIS- based on adjusted gross income) is amended ‘‘(i) limited to accounts that, at the time TRIBUTION DATE.—In any case in which a dis- by striking ‘‘The maximum amount which a the account is created or organized, are des- tribution is required under subsection contributor’’ and inserting ‘‘In the case of a ignated solely for the payment of such ex- (b)(1)(E), any balance to the credit of a des- contributor who is an individual, the maxi- penses, and ignated beneficiary as of the close of the 30- mum amount the contributor’’. ‘‘(ii) not allowed for contributors who have modified adjusted gross income in excess of day period referred to in such subsection for (d) NO DOUBLE BENEFIT.—Section 530(d)(2) making such distribution shall be deemed (relating to distributions for qualified edu- $60,000 and are ratably reduced to zero for distributed at the close of such period.’’ cation expenses) is amended by adding at the contributors who have modified adjusted (2)(A) Section 530(d)(1) is amended by strik- end the following new subparagraph: gross income between $50,000 and $60,000, ‘‘(B) contributions to education individual ing ‘‘section 72(b)’’ and inserting ‘‘section ‘‘(D) DISALLOWANCE OF EXCLUDED AMOUNTS retirement accounts in excess of $500 for any 72’’. AS CREDIT OR DEDUCTION.—No deduction or (B) Section 72(e) (relating to amounts not credit shall be allowed to the taxpayer under taxable years may be made only to accounts received as annuities) is amended by insert- any other section of this chapter for any described in subparagraph (A)(i), ing after paragraph (8) the following new qualified education expenses to the extent ‘‘(C) no contributions may be made to ac- paragraph: taken into account in determining the counts described in subparagraph (A)(i) for ‘‘(9) EXTENSION OF PARAGRAPH (2)(B) TO amount of the exclusion under this para- taxable years ending after December 31, 2002, QUALIFIED STATE TUITION PROGRAMS AND EDU- graph.’’ ‘‘(D) the modified adjusted gross income limitation shall apply to all contributors but CATIONAL INDIVIDUAL RETIREMENT AC- (e) TECHNICAL CORRECTIONS.— COUNTS.—Notwithstanding any other provi- (1)(A) Section 530(b)(1)(E) (defining edu- contributions made by a person other than sion of this subsection, paragraph (2)(B) shall cation individual retirement account) is the taxpayer with respect to whom a deduc- apply to amounts received under a qualified amended to read as follows: tion is allowed under section 151(c)(1) for a State tuition program (as defined in section ‘‘(E) Any balance to the credit of the des- designated beneficiary shall be treated as 529(b)) or under an education individual re- ignated beneficiary on the date on which the having been made by such taxpayer, and tirement account (as defined in section beneficiary attains age 30 shall be distrib- ‘‘(E) expenses for computer and other 530(b)). The rule of paragraph (8)(B) shall uted within 30 days after such date to the equipment, transportation, and supple- apply for purposes of this paragraph.’’ beneficiary or, if the beneficiary dies before mentary items are allowed tax-free only if (3) Section 530(d)(4)(B) (relating to excep- attaining age 30, shall be distributed within required or provided by the school.’’ tions) is amended by striking ‘‘or’’ at the end 30 days after the date of death to the estate AMENDMENT NO. 2047 of clause (ii), by striking the period at the of such beneficiary.’’ end of clause (iii) and inserting ‘‘, or’’, and (B) Section 530(d) (relating to tax treat- Strike sections 101, 102, and 103, and insert: by adding at the end the following new ment of distributions) is amended by adding SEC. 102. EXCLUSION FROM GROSS INCOME OF clause: at the end the following new paragraph: EDUCATION DISTRIBUTIONS FROM QUALIFIED STATE TUITION PRO- ‘‘(iv) an amount which is includible in ‘‘(8) DEEMED DISTRIBUTION ON REQUIRED DIS- GRAMS. gross income solely because the taxpayer TRIBUTION DATE.—In any case in which a dis- (a) IN GENERAL.—Section 529(c)(3)(B) (relat- elected under paragraph (2)(C) to waive the tribution is required under subsection ing to distributions) is amended to read as application of paragraph (2) for the taxable (b)(1)(E), any balance to the credit of a des- follows: year.’’ ignated beneficiary as of the close of the 30- ‘‘(B) DISTRIBUTIONS FOR QUALIFIED HIGHER (f) EFFECTIVE DATES.— day period referred to in such subsection for EDUCATION EXPENSES.— (1) IN GENERAL.—Except as provided in making such distribution shall be deemed ‘‘(i) IN GENERAL.—No amount shall be in- paragraph (2), the amendments made by this distributed at the close of such period.’’ cludible in gross income under subparagraph section shall apply to taxable years begin- (2)(A) Section 530(d)(1) is amended by strik- (A) if the qualified higher education expenses ning after December 31, 1998. ing ‘‘section 72(b)’’ and inserting ‘‘section of the designated beneficiary during the tax- (2) TECHNICAL CORRECTIONS.—The amend- 72’’. able year are not less than the aggregate dis- ments made by subsection (e) shall take ef- (B) Section 72(e) (relating to amounts not tributions during the taxable year. fect as if included in the amendments made received as annuities) is amended by insert- ‘‘(ii) DISTRIBUTIONS IN EXCESS OF EX- by section 213 of the Taxpayer Relief Act of ing after paragraph (8) the following new PENSES.—If such aggregate distributions ex- 1997. paragraph: ceed such expenses during the taxable year, S2340 CONGRESSIONAL RECORD — SENATE March 19, 1998 the amount otherwise includible in gross in- Mr. D’AMATO (for himself, Mr. in the manner determined by the attending come under subparagraph (A) shall be re- DASCHLE, Ms. SNOWE, and Mrs. FEIN- physician and the patient to be appropriate, and consistent with any fee schedule con- duced by the amount which bears the same STEIN) submitted an amendment in- tained in the plan. ratio to the amount so includible (without tended to be proposed by them to the regard to this subparagraph) as such ex- ‘‘(c) NOTICE.—A group health plan, and a penses bear to such aggregate distributions. bill, H.R. 2646, supra; as follows: health insurance issuer providing health in- ‘‘(iii) ELECTION TO WAIVE EXCLUSION.—A In lieu of the matter proposed to be in- surance coverage in connection with a group taxpayer may elect to waive the application serted, insert the following: health plan shall provide notice to each par- of this subparagraph for any taxable year. TITLE ll—WOMEN’S HEALTH AND ticipant and beneficiary under such plan re- ‘‘(iv) IN-KIND DISTRIBUTIONS.—Any benefit CANCER garding the coverage required by this section in accordance with regulations promulgated furnished to a designated beneficiary under a SEC. ll01. SHORT TITLE. by the Secretary. Such notice shall be in qualified State tuition program shall be This Act may be cited as the ‘‘Women’s writing and prominently positioned in any treated as a distribution to the beneficiary Health and Cancer Rights Act of 1998’’. literature or correspondence made available for purposes of this paragraph. SEC. ll02. FINDINGS. ‘‘(v) DISALLOWABLE OF EXCLUDED AMOUNTS or distributed by the plan or issuer and shall Congress finds that— be transmitted— AS CREDIT OR DEDUCTION.—No deduction or (1) breast cancer has become an epidemic credit shall be allowed to the taxpayer under ‘‘(1) in the next mailing made by the plan in this nation affecting alarming numbers of or issuer to the participant or beneficiary; any other section of this chapter for any women; qualified higher education expenses to the ‘‘(2) as part of any yearly informational (2) the offering and operation of health packet sent to the participant or beneficiary; extent taken into account in determining plans affect commerce among the States; the amount of the exclusion under this para- or (3) health care providers located in a State ‘‘(3) not later than January 1, 1998; graph.’’ serve patients who reside in the State and (b) DEFINITION OF QUALIFIED HIGHER EDU- whichever is earlier. patients who reside in other States; and O UTHORIZATION EQUIRED CATION EXPENSES.—Section 529(e)(3)(A) (de- ‘‘(d) N A R .— (4) in order to provide for uniform treat- fining qualified higher education expenses) is ‘‘(1) IN GENERAL.—A provider shall not be ment of health care providers and patients amended to read as follows: required to obtain authorization from the among the States, it is necessary to cover ‘‘(A) IN GENERAL.—The term ‘qualified plan or issuer for prescribing any length of health plans operating in 1 State as well as higher education expenses’ means expenses stay in connection with a mastectomy, a health plans operating among the several for tuition, fees, academic tutoring, special lumpectomy, or a lymph node dissection for States. needs services, books, supplies, computer the treatment of breast cancer. ll equipment (including related software and SEC. 03. AMENDMENTS TO THE EMPLOYEE ‘‘(2) PRENOTIFICATION.—Nothing in this sec- RETIREMENT INCOME SECURITY tion shall be construed as preventing a group services), and other equipment which are in- ACT OF 1974. curred in connection with the enrollment or health plan from requiring prenotification of (a) IN GENERAL.—Subpart B of part 7 of an inpatient stay referred to in this section attendance of the designated beneficiary at subtitle B of title I of the Employee Retire- an eligible educational institution.’’ if such requirement is consistent with terms ment Income Security Act of 1974 (as added and conditions applicable to other inpatient (c) COORDINATION WITH EDUCATION CRED- by section 603(a) of the Newborns’ and Moth- ITS.—Section 25A(e)(2) (relating to coordina- benefits under the plan, except that the pro- ers’ Health Protection Act of 1996 and vision of such inpatient stay benefits shall tion with exclusions) is amended— amended by section 702(a) of the Mental (1) by inserting ‘‘a qualified State tuition not be contingent upon such notification. Health Parity Act of 1996) is amended by program or’’ before ‘‘an education individual ‘‘(e) PROHIBITIONS.—A group health plan, adding at the end the following new section: retirement account’’, and and a health insurance issuer offering group (2) by striking ‘‘section 530(d)(2)’’ and in- ‘‘SEC. 713. REQUIRED COVERAGE FOR MINIMUM health insurance coverage in connection HOSPITAL STAY FOR with a group health plan, may not— serting ‘‘section 529(c)(3)(B) or 530(d)(2)’’. MASTECTOMIES AND LYMPH NODE (d) TECHNICAL CORRECTION.—Section ‘‘(1) deny to a woman eligibility, or contin- DISSECTIONS FOR THE TREATMENT ued eligibility, to enroll or to renew cov- 529(c)(3)(A) is amended by striking ‘‘section OF BREAST CANCER, COVERAGE 72(b)’’ and inserting ‘‘section 72’’. FOR RECONSTRUCTIVE SURGERY erage under the terms of the plan, solely for (e) EFFECTIVE DATES.— FOLLOWING MASTECTOMIES, AND the purpose of avoiding the requirements of (1) IN GENERAL.—Except as provided in COVERAGE FOR SECONDARY CON- this section; paragraph (2), the amendments made by this SULTATIONS. ‘‘(2) provide monetary payments or rebates section shall apply to taxable years begin- ‘‘(a) INPATIENT CARE.— to individuals to encourage such individuals ning after December 31, 1998. ‘‘(1) IN GENERAL.—A group health plan, and to accept less than the minimum protections (2) TECHNICAL CORRECTION.—The amend- a health insurance issuer providing health available under this section; ment made by subsection (d) shall take ef- insurance coverage in connection with a ‘‘(3) penalize or otherwise reduce or limit fect as if included in the amendments made group health plan, that provides medical and the reimbursement of an attending provider by section 211 of the Taxpayer Relief Act of surgical benefits shall ensure that inpatient because such provider provided care to an in- 1997. coverage with respect to the treatment of dividual participant or beneficiary in accord- SEC. 103. EXTENSION OF EXCLUSION FOR EM- breast cancer is provided for a period of time ance with this section; PLOYER-PROVIDED EDUCATIONAL as is determined by the attending physician, ‘‘(4) provide incentives (monetary or other- ASSISTANCE. in consultation with the patient, to be medi- wise) to an attending provider to induce such ‘‘(a) IN GENERAL.—Section 127(d) (relating cally appropriate following— provider to provide care to an individual par- to termination of exclusion for educational ‘‘(A) a mastectomy; ticipant or beneficiary in a manner incon- assistance programs) is amended by striking ‘‘(B) a lumpectomy; or sistent with this section; ‘‘May 31, 2000’’ and inserting ‘‘December 31, ‘‘(C) a lymph node dissection for the treat- ‘‘(5) provide financial or other incentives 2002’’. ment of breast cancer. to a physician or specialist to induce the ‘‘(b) REPEAL OF LIMITATION ON GRADUATE ‘‘(2) EXCEPTION.—Nothing in this section physician or specialist to refrain from refer- EDUCATION.—The last sentence of section shall be construed as requiring the provision ring a participant or beneficiary for a sec- 127(c)(1) (defining educational assistance) is of inpatient coverage if the attending physi- ondary consultation that would otherwise be amended by striking ‘‘, and such term also cian and patient determine that a shorter pe- covered by the plan or coverage involved; does not include any payment for, or the pro- riod of hospital stay is medically appro- and vision of any benefits with respect to, any priate. ‘‘(6) subject to subsection (f)(3), restrict graduate level course of a kind normally ‘‘(b) RECONSTRUCTIVE SURGERY.—A group benefits for any portion of a period within a taken by an individual pursuing a program health plan, and a health insurance issuer hospital length of stay required under sub- leading to a law, business, medical, or other providing health insurance coverage in con- section (a) in a manner which is less favor- advanced academic or professional degree’’. nection with a group health plan, that pro- able than the benefits provided for any pre- (c) EFFECTIVE DATES.— vides medical and surgical benefits with re- ceding portion of such stay. (1) EXTENSION.—The amendment made by spect to a mastectomy shall ensure that, in ‘‘(f) RULES OF CONSTRUCTION.— subsection (a) shall apply to expenses paid a case in which a mastectomy patient elects ‘‘(1) IN GENERAL.—Nothing in this section with respect to courses beginning after May breast reconstruction, coverage is provided shall be construed to require a woman who is 31, 2000. for— a participant or beneficiary— (2) GRADUATE EDUCATION.—The amendment ‘‘(1) all stages of reconstruction of the ‘‘(A) to undergo a mastectomy or lymph made by subsection (b) shall apply to ex- breast on which the mastectomy has been node dissection in a hospital; or penses paid with respect to courses begin- performed; ‘‘(B) to stay in the hospital for a fixed pe- ning after June 30, 1996. ‘‘(2) surgery and reconstruction of the riod of time following a mastectomy or other breast to produce a symmetrical ap- lymph node dissection. D’AMATO (AND OTHERS) pearance; and ‘‘(2) LIMITATION.—This section shall not AMENDMENT NO. 2048 ‘‘(3) the costs of prostheses and complica- apply with respect to any group health plan, tions of mastectomy including or any group health insurance coverage of- (Ordered to lie on the table.) lymphodemas; fered by a health insurance issuer, which March 19, 1998 CONGRESSIONAL RECORD — SENATE S2341 does not provide benefits for hospital lengths (as added by section 604(a) of the Newborns’ and conditions applicable to other inpatient of stay in connection with a mastectomy or and Mothers’ Health Protection Act of 1996 benefits under the plan, except that the pro- lymph node dissection for the treatment of and amended by section 703(a) of the Mental vision of such inpatient stay benefits shall breast cancer. Health Parity Act of 1996) is amended by not be contingent upon such notification. ‘‘(3) COST SHARING.—Nothing in this section adding at the end the following new section: ‘‘(e) PROHIBITIONS.—A group health plan, shall be construed as preventing a group ‘‘SEC. 2706. REQUIRED COVERAGE FOR MINIMUM and a health insurance issuer offering group health plan or issuer from imposing HOSPITAL STAY FOR health insurance coverage in connection deductibles, coinsurance, or other cost-shar- MASTECTOMIES AND LYMPH NODE with a group health plan, may not— ing in relation to benefits for hospital DISSECTIONS FOR THE TREATMENT ‘‘(1) deny to a woman eligibility, or contin- lengths of stay in connection with a mastec- OF BREAST CANCER, COVERAGE ued eligibility, to enroll or to renew cov- tomy or lymph node dissection for the treat- FOR RECONSTRUCTIVE SURGERY erage under the terms of the plan, solely for FOLLOWING MASTECTOMIES, AND the purpose of avoiding the requirements of ment of breast cancer under the plan (or COVERAGE FOR SECONDARY CON- under health insurance coverage offered in SULTATIONS. this section; ‘‘(2) provide monetary payments or rebates connection with a group health plan), except ‘‘(a) INPATIENT CARE.— to individuals to encourage such individuals that such coinsurance or other cost-sharing ‘‘(1) IN GENERAL.—A group health plan, and for any portion of a period within a hospital a health insurance issuer providing health to accept less than the minimum protections length of stay required under subsection (a) insurance coverage in connection with a available under this section; may not be greater than such coinsurance or group health plan, that provides medical and ‘‘(3) penalize or otherwise reduce or limit the reimbursement of an attending provider cost-sharing for any preceding portion of surgical benefits shall ensure that inpatient because such provider provided care to an in- such stay. coverage with respect to the treatment of dividual participant or beneficiary in accord- ‘‘(4) LEVEL AND TYPE OF REIMBURSEMENTS.— breast cancer is provided for a period of time ance with this section; Nothing in this section shall be construed to as is determined by the attending physician, ‘‘(4) provide incentives (monetary or other- prevent a group health plan or a health in- in consultation with the patient, to be medi- wise) to an attending provider to induce such surance issuer offering group health insur- cally appropriate following— provider to provide care to an individual par- ance coverage from negotiating the level and ‘‘(A) a mastectomy; ticipant or beneficiary in a manner incon- type of reimbursement with a provider for ‘‘(B) a lumpectomy; or sistent with this section; care provided in accordance with this sec- ‘‘(C) a lymph node dissection for the treat- tion. ‘‘(5) provide financial or other incentives ment of breast cancer. ‘‘(g) SAFE HARBORS.—The provisions of this to a physician or specialist to induce the ‘‘(2) EXCEPTION.—Nothing in this section section shall not be applicable to any group physician or specialist to refrain from refer- shall be construed as requiring the provision health plan for any plan year for which such ring a participant or beneficiary for a sec- of inpatient coverage if the attending physi- plan has voluntarily sought and received cer- ondary consultation that would otherwise be cian and patient determine that a shorter pe- tification from the National Cancer Insti- covered by the plan or coverage involved; riod of hospital stay is medically appro- tute, or any similar entity authorized by the and priate. Secretary, that such plan provides appro- ‘‘(6) subject to subsection (f)(3), restrict priate coverage, consistent with the objec- ‘‘(b) RECONSTRUCTIVE SURGERY.—A group health plan, and a health insurance issuer benefits for any portion of a period within a tives of this section, for mastectomies, hospital length of stay required under sub- lumpectomies and lymph node dissection for providing health insurance coverage in con- nection with a group health plan, that pro- section (a) in a manner which is less favor- the treatment of breast cancer.’’. able than the benefits provided for any pre- (b) CLERICAL AMENDMENT.—The table of vides medical and surgical benefits with re- spect to a mastectomy shall ensure that, in ceding portion of such stay. contents in section 1 of the Employee Retire- ‘‘(f) RULES OF CONSTRUCTION.— a case in which a mastectomy patient elects ment Income Security Act of 1974, as amend- ‘‘(1) IN GENERAL.—Nothing in this section breast reconstruction, coverage is provided ed by section 603 of the Newborns’ and Moth- shall be construed to require a woman who is for— ers’ Health Protection Act of 1996 and sec- a participant or beneficiary— ‘‘(1) all stages of reconstruction of the tion 702 of the Mental Health Parity Act of ‘‘(A) to undergo a mastectomy or lymph 1996, is amended by inserting after the item breast on which the mastectomy has been node dissection in a hospital; or relating to section 712 the following new performed; ‘‘(B) to stay in the hospital for a fixed pe- item: ‘‘(2) surgery and reconstruction of the riod of time following a mastectomy or other breast to produce a symmetrical ap- ‘‘Sec. 713. Required coverage for minimum lymph node dissection. pearance; and hospital stay for mastectomies ‘‘(2) LIMITATION.—This section shall not ‘‘(3) the costs of prostheses and complica- and lymph node dissections for apply with respect to any group health plan, tions of mastectomy including the treatment of breast cancer, or any group health insurance coverage of- lymphodemas; coverage for reconstructive sur- fered by a health insurance issuer, which gery following mastectomies, in the manner determined by the attending does not provide benefits for hospital lengths and coverage for secondary con- physician and the patient to be appropriate, of stay in connection with a mastectomy or sultations.’’. and consistent with any fee schedule con- lymph node dissection for the treatment of (c) EFFECTIVE DATES.— tained in the plan. breast cancer. ‘‘(c) NOTICE.—A group health plan, and a (1) IN GENERAL.—The amendments made by ‘‘(3) COST SHARING.—Nothing in this section this section shall apply with respect to plan health insurance issuer providing health in- shall be construed as preventing a group years beginning on or after the date of enact- surance coverage in connection with a group health plan or issuer from imposing ment of this Act. health plan shall provide notice to each par- deductibles, coinsurance, or other cost-shar- (2) SPECIAL RULE FOR COLLECTIVE BARGAIN- ticipant and beneficiary under such plan re- ing in relation to benefits for hospital ING AGREEMENTS.—In the case of a group garding the coverage required by this section lengths of stay in connection with a mastec- health plan maintained pursuant to 1 or in accordance with regulations promulgated tomy or lymph node dissection for the treat- more collective bargaining agreements be- by the Secretary. Such notice shall be in ment of breast cancer under the plan (or tween employee representatives and 1 or writing and prominently positioned in any under health insurance coverage offered in more employers ratified before the date of literature or correspondence made available connection with a group health plan), except enactment of this Act, the amendments or distributed by the plan or issuer and shall that such coinsurance or other cost-sharing made by this section shall not apply to plan be transmitted— for any portion of a period within a hospital years beginning before the later of— ‘‘(1) in the next mailing made by the plan length of stay required under subsection (a) (A) the date on which the last collective or issuer to the participant or beneficiary; may not be greater than such coinsurance or bargaining agreements relating to the plan ‘‘(2) as part of any yearly informational cost-sharing for any preceding portion of terminates (determined without regard to packet sent to the participant or beneficiary; such stay. or any extension thereof agreed to after the ‘‘(4) LEVEL AND TYPE OF REIMBURSEMENTS.— date of enactment of this Act), or ‘‘(3) not later than January 1, 1998; Nothing in this section shall be construed to (B) January 1, 1999. whichever is earlier. prevent a group health plan or a health in- For purposes of subparagraph (A), any plan ‘‘(d) NO AUTHORIZATION REQUIRED.— surance issuer offering group health insur- amendment made pursuant to a collective ‘‘(1) IN GENERAL.—A provider shall not be ance coverage from negotiating the level and bargaining agreement relating to the plan required to obtain authorization from the type of reimbursement with a provider for which amends the plan solely to conform to plan or issuer for prescribing any length of care provided in accordance with this sec- any requirement added by this section shall stay in connection with a mastectomy, a tion. not be treated as a termination of such col- lumpectomy, or a lymph node dissection for ‘‘(g) SAFE HARBORS.—The provisions of this lective bargaining agreement. the treatment of breast cancer. section shall not be applicable to any group SEC. ll04. AMENDMENTS TO THE PUBLIC ‘‘(2) PRENOTIFICATION.—Nothing in this sec- health plan or health insurance issuer in HEALTH SERVICE ACT RELATING TO tion shall be construed as preventing a plan connection with a group health plan for any THE GROUP MARKET. or issuer from requiring prenotification of an plan year for which such plan has volun- (a) IN GENERAL.—Subpart 2 of part A of inpatient stay referred to in this section if tarily sought and received certification from title XXVII of the Public Health Service Act such requirement is consistent with terms the National Cancer Institute, or any similar S2342 CONGRESSIONAL RECORD — SENATE March 19, 1998 entity authorized by the Secretary, that breast cancer is provided for a period of time dividual participant or beneficiary in accord- such plan provides appropriate coverage, as is determined by the attending physician, ance with this section; consistent with the objectives of this sec- in consultation with the patient, to be medi- ‘‘(4) provide incentives (monetary or other- tion, for mastectomies, lumpectomies and cally appropriate following— wise) to an attending provider to induce such lymph node dissection for the treatment of ‘‘(A) a mastectomy; provider to provide care to an individual par- breast cancer.’’. ‘‘(B) a lumpectomy; or ticipant or beneficiary in a manner incon- (b) EFFECTIVE DATES.— ‘‘(C) a lymph node dissection for the treat- sistent with this section; (1) IN GENERAL.—The amendments made by ment of breast cancer. ‘‘(5) provide financial or other incentives this section shall apply to group health plans ‘‘(2) EXCEPTION.—Nothing in this section to a physician or specialist to induce the for plan years beginning on or after the date shall be construed as requiring the provision physician or specialist to refrain from refer- of enactment of this Act. of inpatient coverage if the attending physi- ring a participant or beneficiary for a sec- (2) SPECIAL RULE FOR COLLECTIVE BARGAIN- cian and patient determine that a shorter pe- ondary consultation that would otherwise be ING AGREEMENTS.—In the case of a group riod of hospital stay is medically appro- covered by the plan or coverage involved; health plan maintained pursuant to 1 or priate. and more collective bargaining agreements be- ‘‘(b) RECONSTRUCTIVE SURGERY.—A group ‘‘(6) subject to subsection (f)(3), restrict tween employee representatives and 1 or health plan, and a health insurance issuer benefits for any portion of a period within a more employers ratified before the date of providing health insurance coverage in con- hospital length of stay required under sub- enactment of this Act, the amendments nection with a group health plan, that pro- section (a) in a manner which is less favor- made by this section shall not apply to plan vides medical and surgical benefits with re- able than the benefits provided for any pre- years beginning before the later of— spect to a mastectomy shall ensure that, in ceding portion of such stay. (A) the date on which the last collective a case in which a mastectomy patient elects ‘‘(f) RULES OF CONSTRUCTION.— bargaining agreements relating to the plan breast reconstruction, coverage is provided ‘‘(1) IN GENERAL.—Nothing in this section terminates (determined without regard to for— shall be construed to require a woman who is any extension thereof agreed to after the ‘‘(1) all stages of reconstruction of the a participant or beneficiary— date of enactment of this Act), or breast on which the mastectomy has been ‘‘(A) to undergo a mastectomy or lymph (B) January 1, 1999. performed; node dissection in a hospital; or ‘‘(B) to stay in the hospital for a fixed pe- For purposes of subparagraph (A), any plan ‘‘(2) surgery and reconstruction of the other breast to produce a symmetrical ap- riod of time following a mastectomy or amendment made pursuant to a collective lymph node dissection. bargaining agreement relating to the plan pearance; and ‘‘(3) the costs of prostheses and complica- ‘‘(2) LIMITATION.—This section shall not which amends the plan solely to conform to apply with respect to any group health plan, any requirement added by this section shall tions of mastectomy including lymphodemas; or any group health insurance coverage of- not be treated as a termination of such col- fered by a health insurance issuer, which lective bargaining agreement. in the manner determined by the attending does not provide benefits for hospital lengths SEC. ll05. AMENDMENT TO THE PUBLIC physician and the patient to be appropriate, of stay in connection with a mastectomy or HEALTH SERVICE ACT RELATING TO and consistent with any fee schedule con- lymph node dissection for the treatment of THE INDIVIDUAL MARKET. tained in the plan. breast cancer. (a) IN GENERAL.—Subpart 3 of part B of ‘‘(c) NOTICE.—A group health plan, and a ‘‘(3) COST SHARING.—Nothing in this section title XXVII of the Public Health Service Act health insurance issuer providing health in- shall be construed as preventing a group (as added by section 605(a) of the Newborn’s surance coverage in connection with a group health plan or issuer from imposing and Mother’s Health Protection Act of 1996) health plan shall provide notice to each par- deductibles, coinsurance, or other cost-shar- is amended by adding at the end the follow- ticipant and beneficiary under such plan re- ing in relation to benefits for hospital ing new section: garding the coverage required by this section lengths of stay in connection with a mastec- ‘‘SEC. 2752. REQUIRED COVERAGE FOR MINIMUM in accordance with regulations promulgated tomy or lymph node dissection for the treat- HOSPITAL STAY FOR by the Secretary. Such notice shall be in ment of breast cancer under the plan (or MASTECTOMIES AND LYMPH NODE writing and prominently positioned in any under health insurance coverage offered in DISSECTIONS FOR THE TREATMENT literature or correspondence made available connection with a group health plan), except OF BREAST CANCER AND SECOND- or distributed by the plan or issuer and shall that such coinsurance or other cost-sharing ARY CONSULTATIONS. be transmitted— for any portion of a period within a hospital ‘‘The provisions of section 2706 shall apply ‘‘(1) in the next mailing made by the plan length of stay required under subsection (a) to health insurance coverage offered by a or issuer to the participant or beneficiary; may not be greater than such coinsurance or health insurance issuer in the individual ‘‘(2) as part of any yearly informational cost-sharing for any preceding portion of market in the same manner as they apply to packet sent to the participant or beneficiary; such stay. health insurance coverage offered by a or ‘‘(4) LEVEL AND TYPE OF REIMBURSEMENTS.— health insurance issuer in connection with a ‘‘(3) not later than January 1, 1998; Nothing in this section shall be construed to group health plan in the small or large group whichever is earlier. prevent a group health plan or a health in- market.’’. ‘‘(d) NO AUTHORIZATION REQUIRED.— surance issuer offering group health insur- (b) EFFECTIVE DATE.—The amendment ‘‘(1) IN GENERAL.—A provider shall not be ance coverage from negotiating the level and made by this section shall apply with respect required to obtain authorization from the type of reimbursement with a provider for to health insurance coverage offered, sold, plan or issuer for prescribing any length of care provided in accordance with this sec- issued, renewed, in effect, or operated in the stay in connection with a mastectomy, a tion. individual market on or after the date of en- lumpectomy, or a lymph node dissection for ‘‘(g) SAFE HARBORS.—The provisions of this actment of this Act. the treatment of breast cancer. section shall not be applicable to any group ll SEC. 06. AMENDMENTS TO THE INTERNAL ‘‘(2) PRENOTIFICATION.—Nothing in this sec- health plan or health insurance issuer in REVENUE CODE OF 1986. tion shall be construed as preventing a plan connection with a group health plan for any (a) IN GENERAL.—Chapter 100 of the Inter- or issuer from requiring prenotification of an plan year for which such plan has volun- nal Revenue Code of 1986 (relating to group inpatient stay referred to in this section if tarily sought and received certification from health plan portability, access, and renew- such requirement is consistent with terms the National Cancer Institute, or any similar ability requirements) is amended by redesig- and conditions applicable to other inpatient entity authorized by the Secretary, that nating sections 9804, 9805, and 9806 as sec- benefits under the plan, except that the pro- such plan provides appropriate coverage, tions 9805, 9806, and 9807, respectively, and by vision of such inpatient stay benefits shall consistent with the objectives of this sec- inserting after section 9803 the following new not be contingent upon such notification. tion, for mastectomies, lumpectomies and section: ‘‘(e) PROHIBITIONS.—A group health plan, lymph node dissection for the treatment of ‘‘SEC. 9804. REQUIRED COVERAGE FOR MINIMUM and a health insurance issuer offering group breast cancer.’’. HOSPITAL STAY FOR health insurance coverage in connection (b) CONFORMING AMENDMENTS.— MASTECTOMIES AND LYMPH NODE with a group health plan, may not— (1) Sections 9801(c)(1), 9805(b) (as redesig- DISSECTIONS FOR THE TREATMENT ‘‘(1) deny to a woman eligibility, or contin- nated by subsection (a)), 9805(c) (as so redes- OF BREAST CANCER, COVERAGE ignated), 4980D(c)(3)(B)(i)(I), 4980D(d)(3), and FOR RECONSTRUCTIVE SURGERY ued eligibility, to enroll or to renew cov- erage under the terms of the plan, solely for 4980D(f)(1) of such Code are each amended by FOLLOWING MASTECTOMIES, AND striking ‘‘9805’’ each place it appears and in- COVERAGE FOR SECONDARY CON- the purpose of avoiding the requirements of SULTATIONS. this section; serting ‘‘9806’’. (2) The heading for subtitle K of such Code ‘‘(a) INPATIENT CARE.— ‘‘(2) provide monetary payments or rebates is amended to read as follows: ‘‘(1) IN GENERAL.—A group health plan, and to individuals to encourage such individuals a health insurance issuer providing health to accept less than the minimum protections ‘‘Subtitle K—Group Health Plan Portability, insurance coverage in connection with a available under this section; Access, Renewability, and Other Require- group health plan, that provides medical and ‘‘(3) penalize or otherwise reduce or limit ments’’. surgical benefits shall ensure that inpatient the reimbursement of an attending provider (3) The heading for chapter 100 of such coverage with respect to the treatment of because such provider provided care to an in- Code is amended to read as follows: March 19, 1998 CONGRESSIONAL RECORD — SENATE S2343

‘‘CHAPTER 100—GROUP HEALTH PLAN (b) RULES RELATING TO FOREIGN OIL AND (ii) Subsection (b)(4) of section 954 is PORTABILITY, ACCESS, RENEWABIL- GAS INCOME.— amended by striking ‘‘base company oil-re- ITY, AND OTHER REQUIREMENTS’’. (1) SEPARATE BASKET FOR FOREIGN TAX lated income’’ and inserting ‘‘oil and gas in- (4) Section 4980D(a) of such Code is amend- CREDIT.— come’’. ed by striking ‘‘and renewability’’ and in- (A) IN GENERAL.—Paragraph (1) of section (iii) The subsection heading for subsection serting ‘‘renewability, and other’’. 904(d) (relating to separate application of (g) of section 954 is amended by striking (c) CLERICAL AMENDMENTS.— section with respect to certain categories of ‘‘FOREIGN BASE COMPANY OIL RELATED IN- (1) The table of contents for chapter 100 of income) is amended by striking ‘‘and’’ at the COME’’ and inserting ‘‘FOREIGN OIL AND GAS such Code is amended by redesignating the end of subparagraph (H), by redesignating INCOME’’. items relating to sections 9804, 9805, and 9806 subparagraph (I) as subparagraph (J), and by (iv) Subparagraph (A) of section 954(g)(2) is as items relating to sections 9805, 9806, and inserting after subparagraph (H) the follow- amended by striking ‘‘foreign base company 9807, and by inserting after the item relating ing new subparagraph: oil related income’’ and inserting ‘‘foreign to section 9803 the following new item: ‘‘(I) foreign oil and gas income, and’’. oil and gas income’’. ‘‘Sec. 9804. Required coverage for minimum (B) DEFINITION.—Paragraph (2) of section (C) EFFECTIVE DATE.—The amendments hospital stay for mastectomies 904(d) is amended by redesignating subpara- made by this paragraph shall apply to tax- and lymph node dissections for graphs (H) and (I) as subparagraphs (I) and able years of foreign corporations beginning the treatment of breast cancer, (J), respectively, and by inserting after sub- after the date of the enactment of this Act, coverage for reconstructive sur- paragraph (G) the following new subpara- and to taxable years of United States share- gery following mastectomies, graph: holders ending with or within such taxable and coverage for secondary con- ‘‘(H) FOREIGN OIL AND GAS INCOME.—The years of foreign corporations. sultations.’’. term ‘foreign oil and gas income’ has the (c) VALUATION RULES FOR TRANSFERS IN- VOLVING NONBUSINESS ASSETS.— (2) The item relating to subtitle K in the meaning given such term by section 954(g).’’ (1) IN GENERAL.—Section 2031 (relating to table of subtitles for such Code is amended (C) CONFORMING AMENDMENTS.— definition of gross estate) is amended by re- by striking ‘‘and renewability’’ and inserting (i) Section 904(d)(3)(F)(i) is amended by designating subsection (d) as subsection (e) ‘‘renewability, and other’’. striking ‘‘or (E)’’ and inserting ‘‘(E), or (I)’’. and by inserting after subsection (c) the fol- (3) The item relating to chapter 100 in the (ii) Section 907(a) is hereby repealed. lowing new subsection: table of chapters for subtitle K of such Code (iii) Section 907(c)(4) is hereby repealed. ‘‘(d) VALUATION RULES FOR CERTAIN TRANS- is amended by striking ‘‘and renewability’’ (iv) Section 907(f) is hereby repealed. FERS OF NONBUSINESS ASSETS.—For purposes and inserting ‘‘renewability, and other’’. (D) EFFECTIVE DATES.— of this chapter and chapter 12— (d) EFFECTIVE DATES.— (i) IN GENERAL.—The amendments made by ‘‘(1) IN GENERAL.—In the case of the trans- (1) IN GENERAL.—The amendments made by this paragraph shall apply to taxable years this section shall apply with respect to plan beginning after the date of the enactment of fer of any interest in an entity other than an years beginning on or after the date of enact- this Act. interest which is actively traded (within the ment of this Act. (ii) TRANSITIONAL RULES.— meaning of section 1092)— ‘‘(A) the value of any nonbusiness assets (2) SPECIAL RULE FOR COLLECTIVE BARGAIN- (I) SEPARATE BASKET TREATMENT.—Any held by the entity shall be determined as if ING AGREEMENTS.—In the case of a group taxes paid or accrued in a taxable year be- health plan maintained pursuant to 1 or ginning on or before the date of the enact- the transferor had transferred such assets di- more collective bargaining agreements be- ment of this Act, with respect to income rectly to the transferee (and no valuation tween employee representatives and 1 or which was described in subparagraph (I) of discount shall be allowed with respect to more employers ratified before the date of section 904(d)(1) of such Code (as in effect on such nonbusiness assets), and enactment of this Act, the amendments the day before the date of the enactment of ‘‘(B) the nonbusiness assets shall not be made by this section shall not apply to plan this Act), shall be treated as taxes paid or taken into account in determining the value years beginning before the later of— accrued with respect to foreign oil and gas of the interest in the entity. (A) the date on which the last collective income to the extent the taxpayer estab- ‘‘(2) NONBUSINESS ASSETS.—For purposes of bargaining agreements relating to the plan lishes to the satisfaction of the Secretary of this subsection— terminates (determined without regard to the Treasury that such taxes were paid or ac- ‘‘(A) IN GENERAL.—The term ‘nonbusiness any extension thereof agreed to after the crued with respect to foreign oil and gas in- asset’ means any asset which is not used in date of enactment of this Act), or come. the active conduct of 1 or more trades or (B) January 1, 1999. (II) CARRYOVERS.—Any unused oil and gas businesses. ‘‘(B) EXCEPTION FOR CERTAIN PASSIVE AS- For purposes of subparagraph (A), any plan extraction taxes which under section 907(f) of such Code (as so in effect) would have been SETS.—Except as provided in subparagraph amendment made pursuant to a collective (C), a passive asset shall not be treated for bargaining agreement relating to the plan allowable as a carryover to the taxpayer’s first taxable year beginning after the date of purposes of subparagraph (A) as used in the which amends the plan solely to conform to active conduct of a trade or business unless— any requirement added by this section shall the enactment of this Act (without regard to the limitation of paragraph (2) of such sec- ‘‘(i) the asset is property described in para- not be treated as a termination of such col- graph (1) or (4) of section 1221 or is a hedge lective bargaining agreement. tion 907(f) for first taxable year) shall be al- lowed as carryovers under section 904(c) of with respect to such property, or ‘‘(ii) the asset is real property used in the DURBIN AMENDMENT NO. 2049 such Code in the same manner as if such taxes were unused taxes under such section active conduct of 1 or more real property (Ordered to lie on the table.) 904(c) with respect to foreign oil and gas ex- trades or businesses (within the meaning of Mr. DURBIN submitted an amend- traction income. section 469(c)(7)(C)) in which the transferor ment intended to be proposed by him (III) LOSSES.—The amendment made by materially participates and with respect to to the bill, H.R. 2646, supra; as follows: subparagraph (C)(iii) shall not apply to for- which the transferor meets the requirements Strike section 101 and insert: eign oil and gas extraction losses arising in of section 469(c)(7)(B)(ii). SEC. 101. INCREASE IN DEDUCTION FOR HEALTH taxable years beginning on or before the date For purposes of clause (ii), material partici- INSURANCE COSTS OF SELF-EM- of the enactment of this Act. pation shall be determined under the rules of PLOYED INDIVIDUALS. (2) ELIMINATION OF DEFERRAL FOR FOREIGN section 469(h), except that section 469(h)(3) (a) INCREASE IN DEDUCTION.— OIL AND GAS EXTRACTION INCOME.— shall be applied without regard to the limita- (1) IN GENERAL.—Subparagraph (B) of sec- (A) GENERAL RULE.—Paragraph (1) of sec- tion to farming activity. tion 162(l)(1) is amended to read as follows: tion 954(g) (defining foreign base company oil ‘‘(C) EXCEPTION FOR WORKING CAPITAL.— ‘‘(B) APPLICABLE PERCENTAGE.—For pur- related income) is amended to read as fol- Any asset (including a passive asset) which poses of subparagraph (A), the applicable lows: is held as a part of the reasonably required percentage shall be determined under the ‘‘(1) IN GENERAL.—Except as otherwise pro- working capital needs of a trade or business following table: vided in this subsection, the term ‘foreign oil shall be treated as used in the active conduct ‘‘For taxable years be- The applicable and gas income’ means any income of a kind of a trade or business. ginning in calendar percentage is— which would be taken into account in deter- ‘‘(3) PASSIVE ASSET.—For purposes of this year— mining the amount of— subsection, the term ‘passive asset’ means 1998 ...... 45 ‘‘(A) foreign oil and gas extraction income any— 1999 ...... 60 (as defined in section 907(c)), or ‘‘(A) cash or cash equivalents, 2000 ...... 100 ‘‘(B) foreign oil related income (as defined ‘‘(B) except to the extent provided by the 2001 ...... 100 in section 907(c)).’’ Secretary, stock in a corporation or any 2002 ...... 100 2003 ...... 100 (B) CONFORMING AMENDMENTS.— other equity, profits, or capital interest in 2004 ...... 100 (i) Subsections (a)(5), (b)(5), and (b)(8) of any entity, 2005 ...... 100 section 954 are each amended by striking ‘‘(C) evidence of indebtedness, option, for- 2006 and thereafter ...... 100.’’ ‘‘base company oil related income’’ each ward or futures contract, notional principal (2) EFFECTIVE DATE.—The amendment place it appears (including in the heading of contract, or derivative, made by this subsection shall apply to tax- subsection (b)(8)) and inserting ‘‘oil and gas ‘‘(D) asset described in clause (iii), (iv), or able years beginning after December 31, 1997. income’’. (v) of section 351(e)(1)(B), S2344 CONGRESSIONAL RECORD — SENATE March 19, 1998

‘‘(E) annuity, (F) international military education and ‘‘(b) TRANSFER TO TRUST FUND OF AMOUNTS ‘‘(F) real property used in 1 or more real training under chapter 5 of part II of the EQUIVALENT TO CERTAIN TAXES.— property trades or businesses (as defined in Foreign Assistance Act of 1961. ‘‘(1) IN GENERAL.—There are hereby appro- section 469(c)(7)(C)), priated to the Trust Fund for DC Schools ‘‘(G) asset (other than a patent, trade- AMENDMENT NO. 2051 amounts equivalent to 50 percent of the reve- mark, or copyright) which produces royalty In section 3(2)(A), strike ‘‘and’’ at the end nues received in the Treasury resulting from income, of clause (ii). the amendment made by section 201 of the ‘‘(H) commodity, In section 3(2)(A), strike ‘‘(iii)’’ and insert Parent and Student Savings Account PLUS ‘‘(I) collectible (within the meaning of sec- ‘‘(iv)’’. Act. tion 401(m)), or In section 3(2)(A), insert after clause (ii) ‘‘(2) TRANSFER OF AMOUNTS.—The amounts appropriated by paragraph (1) shall be trans- ‘‘(J) any other asset specified in regula- the following: ferred at least monthly from the general tions prescribed by the Secretary. (iii) any future United States subsidy of fund of the Treasury to the Trust Fund for ‘‘(4) LOOK-THRU RULES.— the national expenses of Poland, Hungary, or DC Schools on the basis of estimates made ‘‘(A) IN GENERAL.—If a nonbusiness asset of the Czech Republic to meet its NATO com- by the Secretary of the amounts referred to an entity consists of a 10-percent interest in mitments, including the assistance described in such paragraph. Proper adjustments shall any other entity, this subsection shall be ap- in subparagraph (C), may not exceed 25 per- be made in the amounts subsequently trans- plied by disregarding the 10-percent interest cent of all assistance provided to that coun- ferred to the extent prior estimates were in and by treating the entity as holding di- try by all NATO members. excess of or less than the amounts required rectly its ratable share of the assets of the At the end of section 3(2), insert the follow- to be transferred. other entity. This subparagraph shall be ap- ing new subparagraph: ‘‘(c) EXPENDITURES FROM FUND.— plied successively to any 10-percent interest (C) ADDITIONAL UNITED STATES ASSISTANCE ‘‘(1) IN GENERAL.—Amounts in the Trust of such other entity in any other entity. DESCRIBED.—The assistance referred to in ‘‘(B) 10-PERCENT INTEREST.—The term ‘10- Fund for DC Schools shall be available, with- subparagraph (A)(iii) includes— out fiscal year limitation, in an amount not percent interest’ means— (i) Foreign Military Financing under the ‘‘(i) in the case of an interest in a corpora- to exceed $2,000,000,000 for the period begin- Arms Export Control Act; ning after December 31, 1998, and ending be- tion, ownership of at least 10 percent (by (ii) transfers of excess defense articles vote or value) of the stock in such corpora- fore January 1, 2009, for qualified service ex- under section 516 of the Foreign Assistance penses with respect to State or local bonds tion, Act of 1961; ‘‘(ii) in the case of an interest in a partner- issued by the District of Columbia to finance (iii) Emergency Drawdowns; the construction, rehabilitation, and repair ship, ownership of at least 10 percent of the (iv) no-cost leases of United States equip- capital or profits interest in the partnership, of schools under the jurisdiction of the gov- ment; ernment of the District of Columbia. and (v) the subsidy cost of loan guarantees and ‘‘(iii) in any other case, ownership of at ‘‘(2) QUALIFIED SERVICE EXPENSES.—The other contingent liabilities under subchapter term ‘qualified service expenses’ means ex- least 10 percent of the beneficial interests in VI of chapter 148 of title 10, United States the entity. penses incurred after December 31, 1998, and Code; and certified by the District of Columbia Control ‘‘(5) COORDINATION WITH SUBSECTION (b).— (vi) international military education and Subsection (b) shall apply after the applica- Board as meeting the requirements of para- training under chapter 5 of part II of the graph (1) after giving notice of any proposed tion of this subsection.’’ Foreign Assistance Act of 1961. (2) EFFECTIVE DATE.—The amendments certification to the Subcommittees on the District of Columbia of the Committees on made by this subsection shall apply to trans- AMENDMENT NO. 2052 fers after the date of the enactment of this Appropriations of the House of Representa- Act. At the end of section 3(2), add the following tives and the Senate. new subparagraph: ‘‘(d) REPORT.—It shall be the duty of the f (C) ANALYSIS OF COSTS OF CONTINUED NATO Secretary to hold the Trust Fund for DC ENLARGEMENT.—The Congressional Budget Schools and to report to the Congress each PROTOCOLS TO THE NORTH AT- Office shall submit to the Senate a report year on the financial condition and the re- LANTIC TREATY OF 1949 ON AC- containing an analysis of common-funded sults of the operations of such Fund during CESSION OF POLAND, HUNGARY, and national costs for the enlargement of the preceding fiscal year and on its expected AND CZECH REPUBLIC NATO to include Estonia, Latvia, Lithuania, condition and operations during the next fis- Slovakia, Slovenia, Romania, Bulgaria, Mac- cal year. Such report shall be printed as a edonia, and Albania. Such analysis shall in- House document of the session of the Con- clude an estimate of costs for— gress to which the report is made. HARKIN AMENDMENTS NOS. 2050– (i) the costs to new members to continue ‘‘(e) INVESTMENT.— 2052 to restructure their militaries; ‘‘(1) IN GENERAL.—It shall be the duty of (ii) the costs of force improvements al- the Secretary to invest such portion of the (Ordered to lie on the table). Trust Fund for DC Schools as is not, in the Mr. HARKIN submitted three amend- ready being pursued by existing NATO mem- bers; and Secretary’s judgment, required to meet cur- ments intended to be proposed by him (iii) the costs directly related to NATO en- rent withdrawals. Such investments may be to the resolution of ratification for the largement, including ensuring interoper- made only in interest-bearing obligations of treaty (Treaty Doc. 105–36) protocols to ability between the forces of current and new the United States. For such purpose, such the North Atlantic Treaty of 1949 on members. obligations may be acquired— the accession of Poland, Hungary, and ‘‘(A) on original issue at the issue price, or ‘‘(B) by purchase of outstanding obliga- the Czech Republic. These protocols THE EDUCATION SAVINGS ACT tions at the market price. were opened for sigature at Brussels on FOR PUBLIC AND PRIVATE ‘‘(2) SALE OF OBLIGATIONS.—Any obligation December 16, 1997, and signed on behalf SCHOOLS acquired by the Trust Fund for DC Schools of the United States of America and may be sold by the Secretary at the market other parties to the North Atlantic price. Treaty; as follows: JEFFORDS AMENDMENT NO. 2053 ‘‘(3) INTEREST ON CERTAIN PROCEEDS.—The interest on, and the proceeds from the sale AMENDMENT NO. 2050 (Ordered to lie on the table.) or redemption of, any obligations held in the At the end of section 3(2)(A) of the resolu- Mr. JEFFORDS submitted an amend- Trust Fund for DC Schools shall be credited tion, insert the following: ment intended to be proposed by him to and form a part of the Trust Fund for DC As used in this subparagraph, the term to the bill, H.R. 2646, supra; as follows: Schools.’’ ‘‘NATO common-funded budget’’ shall be (b) CONFORMING AMENDMENT.—The table of Strike section 101 and insert: deemed to include— sections for subchapter W of chapter 1 is (A) Foreign Military Financing under the SEC. 101. TRUST FUND FOR DC SCHOOLS. amended by adding after the item relating to Arms Export Control Act; (a) IN GENERAL.—Subchapter W of chapter section 1400C the following: 1 (relating to District of Columbia Enter- (B) transfers of excess defense articles ‘‘Sec. 1400D. Trust Fund for DC Schools.’’ under section 516 of the Foreign Assistance prise Zone) is amended by adding at the end In section 103(a), strike ‘‘December 31, Act of 1961; the following: 2002’’ and insert ‘‘June 30, 2002’’. (C) Emergency Drawdowns; ‘‘SEC. 1400D. TRUST FUND FOR DC SCHOOLS. (D) no-cost leases of United States equip- ‘‘(a) CREATION OF FUND.—There is estab- f ment; lished in the Treasury of the United States a NOTICE OF HEARING (E) the subsidy cost of loan guarantees and trust fund to be known as the ‘Trust Fund other contingent liabilities under subchapter for DC Schools’, consisting of such amounts COMMITTEE ON RULES AND ADMINISTRATION VI of chapter 148 of title 10, United States as may be appropriated or credited to the Mr. WARNER. Mr. President, I wish Code; and Fund as provided in this section. to announce that the Committee on March 19, 1998 CONGRESSIONAL RECORD — SENATE S2345 Rules and Administration will meet in countability Act of 1996: First Year Im- update my colleagues on a closely re- SR–301, Russell Senate Office Building, plementation Concerns during the ses- lated issue which I personally think on Wednesday, March 25, 1998 at 9:30 sion of the Senate on Thursday, March has some degree of relevance to what a.m. to receive testimony on the Fed- 19, 1998, at 10:00 a.m. we are considering. eral Election Commission’s budget au- The PRESIDING OFFICER. Without In July, 1997, I was pleased to be a thorization request for FY99. objection, it is so ordered. leader of a delegation to Prague and For further information concerning COMMITTEE ON RULES AND ADMINISTRATION Warsaw whose primary mission was to this hearing, please contact Bruce Mr. ALLARD. Mr. President, I ask seek information about missing Amer- Kasold of the Rules Committee staff at unanimous consent that the Commit- ican servicemen from the Cold War pe- 224–3448. tee on Rules and Administration be au- riod. I was joined on this trip by my f thorized to meet during the session of House colleague, Congressman SAM the Senate on Thursday, March 19, 1998 JOHNSON of Texas—himself a former AUTHORITY FOR COMMITTEES TO POW from Vietnam—and also by one of MEET beginning at 8:30 a.m. until business is completed, to conduct an oversight our former Ambassadors to the Soviet COMMITTEE ON ARMED SERVICES hearing on the FY99 budget and oper- Union, Malcolm Toon. Together, we are Mr. ALLARD. Mr. President, I ask ations of the Smithsonian Institution, all members of a Joint Commission unanimous consent that the Commit- the Kennedy Center, and the Woodrow with Russia on the POW and MIA issue tee on Armed Services be authorized to Wilson International Center for Schol- which was established by President meet on Thursday, March 19, 1998, at 10 ars. Bush and President Yeltsin in 1992. One a.m., in open session, to receive testi- The PRESIDING OFFICER. Without of our goals last summer was to broad- mony on NATO enlargement. objection, it is so ordered. en our search to the former communist The PRESIDING OFFICER. Without Eastern Bloc nations who were allied SELECT COMMITTEE ON INTELLIGENCE objection, it is so ordered. with North Vietnam, North Korea, and Mr. ALLARD. Mr. President, I ask the Soviet Union during the Cold War COMMITTEE ON COMMERCE, SCIENCE, AND unanimous consent that the Select TRANSPORTATION period. Committee on Intelligence be author- Mr. ALLARD. Mr. President, I ask During our trip, we were received by ized to meet during the session of the the President of the Czech Republic, unanimous consent that the Senate Senate on Thursday, March 19, 1998 at Committee on Commerce, Science, and Vaclav Havel, and the President of the 2:30 p.m. to hold a closed hearing on in- Republic of Poland, Aleksander Transportation be authorized to meet telligence matters. on Thursday, March 19, 1998, at 9:30 Kwasniewski. We also met with various The PRESIDING OFFICER. Without ministers in each of these two coun- a.m. on tobacco legislation (Governors/ objection, it is so ordered. retailers). tries. I want my colleagues to know The PRESIDING OFFICER. Without SUBCOMMITTEE ON ANTITRUST, BUSINESS that we were very impressed with the RIGHTS, AND COMPETITION objection, it is so ordered. pledges of cooperation we received at Mr. ALLARD. Mr. President, I ask all levels during all of our meetings. It COMMITTEE ON ENERGY AND NATURAL unanimous consent that the Sub- RESOURCES appeared to us at the time that Poland committee on Antitrust, Business Mr. ALLARD. Mr. President, I ask and the Czech Republic clearly under- Rights, and Competition, of the Senate unanimous consent that the Commit- stood the importance that Americans Judiciary Committee, be authorized to tee on Energy and Natural Resources attach to resolving lingering questions meet during the session of the Senate be granted permission to meet during about the fate of our unaccounted for on Tuesday, March 19, 1998 at 2:00 p.m. the session of the Senate on Thursday, POWs and MIAs. These nations had suf- to hold a hearing in Room 226, Senate March 19, for purposes of conducting a fered their own tragedies under com- Dirksen Building, on: ‘‘International full committee hearing on which is munist domination, and we believed Aviation Alliances.’’ scheduled to begin at 9:30 a.m. The pur- there would be a sincere, thorough ef- The PRESIDING OFFICER. Without pose of this hearing is to receive testi- fort to assist us with our humanitarian objection, it is so ordered. mony on S. 1488 and accompanying mission. Senate amendment No. 1618, legislation SUBCOMMITTEE ON STRATEGIC FORCES I might also add that although we did to ratify an agreement between the Mr. ALLARD. Mr. President, I ask not personally visit Hungary during Aleut Corporation and the United unanimous consent that the Sub- that trip, we did send staff representa- States of America to exchange land committee on Strategic Forces of the tives to Budapest, and we later re- rights received under the Alaska Na- Committee on Armed Services be au- ceived similar pledges of cooperation tive Claims Settlement Act for certain thorized to meet on Thursday, March from the Hungarian Embassy in Wash- land interests on Adak Island, and for 19, 1998, at 2:30 p.m. in open/closed ses- ington. other purposes; and S. 1670, a bill to sion, to receive testimony on the De- Unfortunately, Mr. President, I must amend the Alaska Native Claims Set- partment of Energy’s Science-Based report that the follow-up actions that tlement Act to provide for selection of Stockpile Stewardship and Manage- we had hoped would take place have lands by certain veterans of the Viet- ment Program in Review of the De- not been satisfactorily fulfilled by nam era. fense Authorization Request for Fiscal these three nations. This is especially The PRESIDING OFFICER. Without Year 1999 and the Future Years Defense disturbing and troublesome to me as objection, it is so ordered. Program. the full Senate now considers whether The PRESIDING OFFICER. Without to guarantee putting more American COMMITTEE ON THE JUDICIARY objection, it is so ordered. military lives on the line for these re- Mr. ALLARD. Mr. President, I ask f publics in the former Eastern Bloc. unanimous consent that the Commit- It has been said by some NATO ex- tee on the Judiciary be authorized to ADDITIONAL STATEMENTS pansion advocates that we have an op- hold an executive business meeting portunity to ensure the Cold War never during the session of the Senate on resurfaces in this part of the world. Thursday, March 19, 1998, at 5:15 p.m., POW/MIA COOPERATION FROM Yet, we still cannot seem to get the co- in the Vice President’s office of the FORMER EASTERN BLOC NATIONS operation we need from this region to United States Capitol Building. ∑ Mr. SMITH of New Hampshire. Mr. address vital questions about our miss- The PRESIDING OFFICER. Without President, as you know, earlier this ing and captured Americans from this objection, it is so ordered. week the full Senate began to delib- same Cold War period. We still are not COMMITTEE ON LABOR AND HUMAN RESOURCES erate expanding the NATO treaty to in- able to resolve this Cold War problem. Mr. ALLARD. Mr. President, I ask clude the Czech Republic, Poland, and If their pledges were indeed genuine, unanimous consent that the Commit- Hungary. While I have already pre- as I believed they were, then I, frankly, tee on Labor and Human Resources be sented some opening remarks on the question Mr. President why the leaders authorized to meet for a hearing on floor about my concerns with moving of these countries cannot convince Health Insurance Portability and Ac- forward now on this matter, I want to their respective bureaucracies to open S2346 CONGRESSIONAL RECORD — SENATE March 19, 1998 their Cold War communist files and nois, agricultural processing employs to 60 percent in 1999 and 100 percent make relevant personnel available to thousands of people. And, our research- thereafter. Relief for farm families in us for interview. To me, this apparent ers continue to help provide answers to this area is needed now. Farmers inability to follow through on commit- some of the most common as well as should not have to wait until 2007 for ments has serious implications which the most complex agricultural ques- equity with their corporate competi- we should be considering in the context tions we face. tors. of the NATO expansion debate. Since last year’s National Agri- Mr. President, finding new and ex- Since last summer, there have been culture Day, we’ve made some real panded uses for agricultural products is follow-up communications by our Com- progress for rural America. The Tax- an important endeavor. Soybean grow- mission support staff at the Depart- payer Relief Act raised the inheritance ers and the oilseeds industry are pro- ment of Defense and also by my own of- tax exemption for small businesses to posing a strategy for biodiesel, a diesel fice with each of these nations urging $1.3 million, lowered the capital gains fuel derived from soybeans. Including them to follow through on their com- tax rate, and began a gradual increase biodiesel in existing and future Depart- mitments. Most important is the fact in the deductibility of health insurance ment of Energy programs will help the that, based on current leads available premiums. nation reduce dependence on imported to us, our Commission believes there is This year, we face a number of equal- oil, while improving the environment, relevant information which likely ex- ly important issues, specifically, reau- reducing global warming, and creating ists in Eastern Europe, especially in thorization of agricultural research, new domestic agricultural product the military, intelligence, security, expedited health insurance premium markets. And, of course, ethanol, a and communist party archives of these deductibility for the self-employed, ex- corn-based renewable fuel, is one of the three nations which we are considering tension of the ethanol tax incentive, best alternative use opportunities that bringing into NATO. and food safety. exists today. We should remember that the East- The safety and availability of our Na- On a day like today, it is important ern Bloc was an active ally and sup- tion’s food supply depends directly on to point out the benefits of ethanol. porter of the communist North Viet- agricultural research. This year, Con- The industry is responsible for more namese and North Korean regimes dur- gress must reauthorize the research than 40,000 American jobs. Ethanol ing those respective U.S. wars. They title of the farm bill. Reauthorization contributes more than $5.6 billion an- had a significant presence in Asia and will establish a national policy for im- nually to our economy. Five percent of were probably privy to information portant agricultural research into the our nation’s corn crop goes to ethanol about communist policy toward the 21st century. In these times of con- production. Corn growers have seen disposition of American POWs, to in- strained federal budgets, it is vitally their incomes increased by more than clude whether any were transferred to important to maintain an effective sys- $1.2 billion because of ethanol. This the territory of the former Soviet tem for agricultural research. year alone, over 1.4 billion gallons of Union as we now suspect. Agriculture-related research in this ethanol will be produced . Thanks to Mr. President, today I appeal once country is currently conducted at over the reformulated gasoline program, again to the leaders of the Czech Re- 100 ARS labs, including Peoria, and at toxic air pollutants like benzene and public, Poland, and Hungary to follow over 70 land grant institutions, includ- carbon monoxide have fallen substan- through fully with the commitments ing the University of Illinois. The Uni- tially. And, ethanol contributes over $2 they have made to help us search for versity of Illinois is involved in bio- billion annually to the U.S. trade bal- our missing American servicemen from technology, aflatoxin, genome, and ance. the Cold War. And I urge my col- food safety research on their campuses. Last week, the Senate overwhelm- leagues, on behalf of our veterans and Southern Illinois University is working ingly defeated a proposal that would POW/MIA family members, to join with on groundwater contamination and an have removed the ethanol excise tax me in continuing to push for more important National Corn to Ethanol exemption from the Intermodal Sur- progress on this humanitarian issue. Research Pilot Plant near its face Transportation Efficiency Act We simply cannot afford to lose sight Edwardsville campus. These projects (ISTEA). That vote was the strongest of this issue of highest national prior- are simply too important to delay. in Senate history in support of ethanol. ity in the context of the current NATO However, the future of agricultural re- It is my hope that an extension of the expansion debate. It has important search depends on Congress reauthoriz- ethanol tax incentive will be included ramifications which we should care- ing these vital programs sooner rather in the final conference report on fully consider.∑ than later. ISTEA. Time is running out. Farmers, f With regard to health care costs, I the ethanol industry, and rural Amer- believe that a 100-percent tax deduc- ica deserve to have this important pro- NATIONAL AGRICULTURE DAY tion for health insurance premiums is gram extended. ∑ Mr. DURBIN. Mr. President, I want one of the most basic issues of fairness An issue that also needs immediate to take a few minutes to pay tribute to to farm families across this country. attention is food safety. Make no mis- one of our Nation’s most important in- Because of the high cost of health in- take, our country has been blessed dustries—agriculture. Today, we cele- surance, especially insurance pur- with the safest food supply in the brate National Agriculture Day. It is a chased in the individual market, lack world. However, we can do better. The time to reflect on the value of produc- of affordability is a growing problem to General Accounting Office estimates tion agriculture and to say thank you farmers. Health insurance is particu- that as many as 33 million people will to all those who are involved, both di- larly important to those involved in suffer food poisoning this year and rectly and indirectly, in producing the production agriculture because farm- more than 9,000 will die. The Depart- most abundant and safest food and ing is one of the more dangerous occu- ment of Health and Human Services fiber supply in the world. pations. It is essential that farmers predicts that foodborne illnesses and Illinois is one of our country’s most have access to quality health care and deaths are likely to increase 10 to 15 important agricultural contributors. affordable health insurance. percent over the next decade. Illinois farm land, which accounts for In last year’s Taxpayer Relief Act, I have introduced the Safe Food Act, about 27 million acres, is considered Congress made the commitment to in- S. 1465, which would empower a single, some of the most productive in the crease deductibility very gradually independent agency to enforce food world. More than 76,000 farm families from 40 percent in 1997 to 100 percent in safety regulations from farm to table. in the State produce corn, soybeans, 2007. Although I believe this legislation It would provide an easier framework wheat, beef, pork, dairy products, and was a good first step, we need to pro- for implementing U.S. standards in an specialty crops. Illinois exports more vide this relief faster. I have intro- international context. Research could than $3.4 billion worth of agricultural duced legislation that will expedite the be better coordinated within a single products. The State’s agribusiness ac- full deductibility of health insurance agency rather than among multiple tivity is vibrant. From the Chicagoland premiums. I also intend to offer an programs. And, new technologies to area to Decatur and throughout Illi- amendment to increase deductibility improve food safety could be approved March 19, 1998 CONGRESSIONAL RECORD — SENATE S2347 more rapidly with one food safety Mike and the Grand Forks Herald outbreak and spread of financial crises. agency. staff are part of the story of last year’s It also reinforces the need to move At a time of government downsizing flood that doesn’t get told nearly quickly to restore the IMF’s ability to and reorganization, the U.S. simply enough. As this city overcame the contain the current crisis and to main- can’t afford to continue operating mul- worst disaster in North Dakota his- tain the IMF’s ability to respond to fu- tiple systems. In order to achieve a tory, its citizens have marched back ture problems. successful, effective food safety and in- with resilience, fortitude and inspira- That is why I am concerned about spection system, a single agency with tional spirit. Mike Jacobs, the entire some of the conditions put on the IMF uniform standards is needed. Grand Forks Herald staff and the peo- funds in the Appropriations Committee Mr. President, National Agriculture ple of Grand Forks have triumphed, on Tuesday. Treasury Secretary Rubin, Day affords us all the opportunity to and I am proud to salute them. who, along with Federal Reserve Chair- say thank you to those who farm, proc- I can’t express my admiration man Greenspan has repeatedly re- ess agricultural products, conduct the enough.∑ minded Senators of the need for quick research and plan for the future, and f action on these funds, has called those keep American agriculture the best in conditions—and I quote: ‘‘Impractical RETIREMENT OF JERROLD L. the world.∑ to the point of being unworkable.’’ JACOBS f This is no way to treat funds that are ∑ Mr. LAUTENBERG. Mr. President, I needed to restore the equilibrium of MIKE JACOBS AND THE STAFF OF rise to recognize an old friend and suc- the international financial system, and THE GRAND FORKS HERALD cessful businessman on the occasion of to no way maintain the leadership of ∑ Mr. DORGAN. Mr. President, in the his retirement as Chair and CEO of At- the United States in the world econ- months since the devastating blizzards lantic Energy, Inc. omy. and floods struck North Dakota last Jerry and I both have strong roots in The International Monetary Fund year, I have been pleased to draw the Paterson, New Jersey. We grew up was created by us at the end of World Senate’s attention to some truly re- there, and our fathers worked together War II to maintain the stability of the markable people who stepped up when in the silk mills. Being from Paterson, international financial system. Today, their communities most needed them. of course, we were both destined for its task as the lender of last resort in Today, I am pleased to report that success! the kinds of meltdowns we have seen in one such individual was here in Wash- Jerry began working at Atlantic Asia is by no means simple. ington recently to receive an honor he Electric in 1961, first in various mana- With the rise of market economies richly deserves. Mike Jacobs, the edi- gerial positions and then working his among the developing nations of the tor of the Grand Forks Herald, was way up to Chairman and CEO. Eventu- world, and with the expansion of the named ‘‘Editor of the Year’’ by the Na- ally, Jerry rose to the position of international financial system—both tional Press Foundation for his and the Chairman and CEO at Atlantic Energy, developments that promote the long- Herald’s truly remarkable achieve- the holding company formed in 1987 term interests of the United States— ments during last year’s flood and fires which incorporated Atlantic Electric. the task of the IMF has become in- in Grand Forks. I want to add my voice Besides Jerry’s achievements at creasingly difficult. to the chorus of thanks to Mike and to work, he has several professional and I am not here today, Mr. President, the entire staff of the Herald for their civic affiliations. He holds everything to argue that the IMF is a perfect in- outstanding work under extraor- from memberships to chairmanships in stitution; in fact, our own Treasury, dinarily difficult circumstances. organizations such as the New Jersey under the leadership of Secretary I saw firsthand how much it meant to Utilities Association, the New Jersey Rubin, has used its substantial influ- the people of Grand Forks that their Chapter of the Nature Conservancy, ence to push for important reforms, to hometown newspaper never missed a the New Jersey State Chamber of Com- open the IMF to greater public under- day of printing throughout the city’s merce and the Noyes Museum Board of standing and trust. Secretary Rubin is crisis. Directors. also working with his counterparts When the Herald arrived at shelters Again, I congratulate Jerry for his around the world to reform the work- and emergency centers, it flew off the devotion to Atlantic Energy for over 35 ings of the international banking sys- racks. Clusters of people would gather years, and I extend my warm wishes to tem to reduce the risk of crises such as around and jointly read it. They were his wife Carol and his three children, one we watch today in Asia with great starved for news of what was happening Michael Jacob, Melissa Kuperminc and concern. in their city during their trying time Marlene Sandstrom.∑ As the leader in the world’s econ- and they devoured the paper. f omy—indeed as the model economy Yet even more than a conduit of in- which the rest of the world aspires to formation, the Grand Forks Herald INTERNATIONAL MONETARY FUND emulate—we in the United States have stood as a powerful symbol of people ∑ Mr. BIDEN. Mr. President, I want to a special role to play in helping to sus- determined to survive and endure, and take a few minutes this afternoon to tain the health of the international as a daily reminder that even in the address the urgent need for IMF funds, economy. By maintaining our position face of this calamity, Grand Forks to restore confidence to a fragile inter- in the IMF—by paying our dues and would continue to remain a commu- national financial system and to main- maintaining our dominant position nity, something the flood waters would tain a leadership role in the world there—we will remove lingering doubts never be able to wash away. economy. in financial markets that make recov- That the Herald was there at all was I am pleased to see that the Appro- ery and reform in Asia harder to wondrous. Its building was completely priations Committee has moved quick- achieve. flooded and then soon burned to the ly this week to provide funding for con- And, as the most open economy in ground. The homes of nearly every em- tinued U.S. participation in the IMF— the world, we have the greatest stake ployee of the Herald were inundated by both for the new arrangements to bor- in maintaining the stability of inter- flood waters. row that represent the emergency re- national trade and finance. The longer Yet the Herald, led by Editor Mike serves of the fund, and for the quota in- we leave the issue of our IMF commit- Jacobs, never faltered, never missed an crease to restore the IMF’s ability to ment in doubt, the more our own farm- edition. It found a temporary office in meet potential new demands on its re- ers, workers, and manufacturers will the grade school of a nearby small sources. lose overseas sales. town. It located alternative presses, The current news from Asia—declin- I want to remind my colleagues that and devised creative methods of dis- ing U.S. exports, the threat of in- our contributions to the IMF don’t cost tributing the paper to its readers. In creased imports, a more fragile inter- American taxpayers a dime. Like de- the most harrowing of times, it flour- national banking system—has brought posits in a credit union of our own ished. In doing so, it gave hope, inspi- home to us the importance of inter- making, our contributions are matched ration and purpose to its community. national cooperation to prevent the by interest-bearing assets, and we can S2348 CONGRESSIONAL RECORD — SENATE March 19, 1998 call for the return of those contribu- non. As a young boy, his ability to ski Mozelle Willmont Thompson, of New York, tions if we choose. For those reasons, caught the attention of many. He soon to be a Federal Trade Commissioner for the those contributions have no impact on acquired the nickname, ‘‘Kid Cannon,’’ term of seven years from September 26, 1996. our Federal deficit—or the surplus we and dazzled his peers with his talent. f now enjoy. Bode was then invited to a training LEGISLATIVE SESSION With the outcome of the Asian crisis camp at Sugarloaf Mountain and was The PRESIDING OFFICER. The Sen- still to be determined, with the world soon targeted as a gifted athlete. As a ate will now return to legislative ses- looking to us for the leadership that result, he was offered a scholarship to sion. will restore confidence to private sec- the Carrabassett Valley Ski Academy tor investors, we must act quickly and where he was able to improve his abili- f decisively to maintain the strength of ties and work with experienced coaches ORDERS FOR FRIDAY MARCH 20, the IMF—and to maintain our own to tune his skills. 1998 dominant voice within the IMF. We Bode burst into the international scene with an 11th-place finish, the Mr. COCHRAN. Mr. President, I ask should not make demands of the IMF unanimous consent that when the Sen- that could delay indefinitely the day best by an American, at the World Cup giant slalom at Park City in Novem- ate completes its business today, it when private financial markets regain stand in adjournment until 10 a.m. on the confidence that will mark the turn- ber. Before this outstanding finish, Bode was ranked internationally at Friday, March 20, and immediately fol- ing point in the current financial cri- lowing the prayer, the routine requests sis. 69th place. Bode’s career then took off and he became a member on the Olym- through the morning hour be granted, That is why I am pleased that my and the Senate then proceed to execu- friend and colleague on the Foreign Re- pic Ski Team. Often times, the tele- vision announcers for the races raved tive session to resume consideration of lations Committee—chairman of the about his athleticism and admired his Treaty Document No. 105–36, dealing International Economic Policy Sub- aggressive style. At the age of 20, in a with NATO expansion. committee—Senator HAGEL, has taken sport where racers are generally older, The PRESIDING OFFICER. Without the lead in introducing legislation au- the media characterized him as a objection, it is so ordered. thorizing funds for the IMF with work- young rebel. f able, sensible reforms. Together with According to Bode’s coach, Bode is Senator GRAMS on our committee, and very good at figuring out what it takes PROGRAM Senators ROBERTS, CHAFEE, and to be successful and is exceptionally Mr. COCHRAN. Mr. President, I DOMENICI, Senator HAGEL has provided confident. He is aware of his own phys- make the following announcements at us with an important point of reference ical talents and incorporates this atti- the request of the majority leader. when we consider IMF funding here on tude in his style. I’m sure, because of Tomorrow, the Senate will resume the Senate floor. his young age, he will continue to excel consideration of the NATO expansion And I hope that will happen soon. and impress the nation. Nonetheless, treaty, with amendments to the resolu- Right now, there is no guarantee that he still has achieved what most only tion of ratification being offered we will take up the urgent issue of IMF dream about and has proven once again throughout the day. It is expected that funding at any time this year. Failure that Americans continue to achieve Senator HUTCHISON of Texas will offer to act, and to act soon, would be irre- great feats. At a fresh age, Bode proud- an amendment tomorrow, and any sponsible. It would expose the United ly represented our country and deliv- other Senators with amendments are States as vacillating, indecisive, and ered a superb performance in the world encouraged to contact the managers unable to lead in a time when what is arena of Olympiads. Mr. President, I with their amendments. As earlier needed most is leadership and commit- want to congratulate Bode Miller for stated, it is hoped that the Senate will ment to restore confidence and stabil- his youthful vigor and aggressive com- be able to make considerable progress ity to a shaken financial system. petition in the 1998 Olympics and I am on the treaty. Similarly, it would be irresponsible proud to represent him in the U.S. Sen- In addition, the Senate may consider to add unrelated, highly charged issues ate.∑ any other legislative or executive busi- to the consideration of what are clear- f ness cleared for Senate action, al- ly urgently needed funds for the IMF. though, as previously announced by EXECUTIVE SESSION Mr. President, I am confident that in the majority leader, no rollcall votes the end, the United States Senate will will occur during Friday’s session. respond to the current challenge with EXECUTIVE CALENDAR The next vote will occur at 5:30 p.m. both the decisiveness and good judg- on Monday, hopefully in relation to an Mr. COCHRAN. Mr. President, I ask ment that must characterize the ac- amendment to the NATO treaty. Also, unanimous consent that the Senate im- tions of a great Nation in time of cri- the second cloture vote scheduled for mediately proceed to executive session sis. this evening was postponed to occur on to consider the following nominations I look forward to working with all of Tuesday, March 24, in an effort to work on the Executive Calendar: Nos. 538, my colleagues to make that faith a re- on an agreement for an orderly han- ality.∑ 539, and 540, en bloc. The PRESIDING OFFICER. Without dling of the bill. Therefore, a second f objection, it is so ordered. cloture vote will occur on the Cover- BODE MILLER: MEMBER OF THE Mr. COCHRAN. I further ask unani- dell A+ bill on Tuesday if an agreement U.S.A. OLYMPIC SKI TEAM mous consent that the nominations be cannot be reached in the meantime. confirmed en bloc, the motions to re- f ∑ Mr. SMITH of New Hampshire. Mr. President, I rise today to congratulate consider be laid upon the table, the ADJOURNMENT UNTIL 10 A.M. Bode Miller, a distinguished athlete President be immediately notified of TOMORROW the Senate’s action and the Senate from Franconia, New Hampshire, for Mr. COCHRAN. Mr. President, if participating in the 1998 Olympics in then return to legislative session. The PRESIDING OFFICER. Without there is no further business to come be- Nagano, Japan. Bode had the oppor- objection, it is so ordered. fore the Senate, I now ask that the tunity to compete in the Olympics be- The nominations considered and con- Senate stand in adjournment under the cause of his dedication to precision, re- firmed en bloc are as follows: previous order. lentless drive for excellence and un- NATIONAL TRANSPORTATION SAFETY BOARD There being no objection, the Senate, swerving passion for skiing. James E. Hall, of Tennessee, to be Chair- at 6:41 p.m., adjourned until Friday, It was a special honor to have Bode man of the National Transportation Safety March 20, 1998, at 10 a.m. represent our country and the State of Board for a term of two years. f New Hampshire while competing in FEDERAL TRADE COMMISSION CONFIRMATIONS Nagano, Japan. He started skiing at Orson Swindle, of Hawaii, to be a Federal the young age of three at his favorite Trade Commissioner for the term of seven Executive nominations confirmed by and most frequented mountain, Can- years from September 26, 1997. the Senate March 19, 1998: March 19, 1998 CONGRESSIONAL RECORD — SENATE S2349

NATIONAL TRANSPORTATION SAFETY BOARD FEDERAL TRADE COMMISSION MOZELLE WILLMONT THOMPSON, OF NEW YORK, TO BE A FEDERAL TRADE COMMISSIONER FOR THE TERM OF JAMES E. HALL, OF TENNESSEE, TO BE CHAIRMAN OF ORSON SWINDLE, OF HAWAII, TO BE A FEDERAL TRADE SEVEN YEARS FROM SEPTEMBER 26, 1996. THE NATIONAL TRANSPORTATION SAFETY BOARD FOR A COMMISSIONER FOR THE TERM OF SEVEN YEARS FROM THE ABOVE NOMINATIONS WERE APPROVED SUBJECT TERM OF TWO YEARS. SEPTEMBER 26, 1997. TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY CONSTITUTED COMMITTEE OF THE SENATE.