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

Vol. 146 WASHINGTON, TUESDAY, OCTOBER 3, 2000 No. 121 Senate (Legislative day of Friday, September 22, 2000)

The Senate met at 9:30 a.m., on the I pledge allegiance to the Flag of the time equally divided on the H–1B mat- expiration of the recess, and was called United States of America, and to the Repub- ter to be voted on at 10 o’clock. to order by the President pro tempore lic for which it stands, one nation under God, The PRESIDENT pro tempore. The indivisible, with liberty and justice for all. [Mr. THURMOND]. Senator is correct. f PRAYER Mr. REID. Mr. President, H–1B origi- RECOGNITION OF THE ACTING nated in our immigration laws in the The Chaplain, Dr. Lloyd John MAJORITY LEADER 1950’s so that trained professionals Ogilvie, offered the following prayer: could work for a limited time in the God of hope, You have shown us that The PRESIDENT pro tempore. The authentic hope is rooted in Your faith- acting majority leader is recognized. U.S. In 1990, a cap was set on the cat- egory for the first time of 65,000. fulness in keeping Your promises. We f hear Your assurance, ‘‘Be not afraid, I Employers in every industry and sec- am with you.’’ We place our hope in SCHEDULE tor of our economy, including manufac- Your problem-solving power, Your con- Mr. THOMAS. Mr. President, today turing, higher education, health care, flict-resolving presence, and Your anx- the Senate will begin final action on research, finance and others, have used iety-dissolving peace. the H–1B visa bill, with a vote on final it. Lord, You have helped us discover passage scheduled to occur at 10 a.m. Employers from major multinational the liberating power of an unreserved Following the vote, the Senate will companies to small businesses seeking commitment to You. When we commit proceed to executive session to debate individuals with specific skills needed to You our lives and each of the chal- four nominations on the Executive Cal- to grow their companies have used it. lenges we face, we are not only released endar. Under the previous order, there It became wildly popular in the mid from the tension of living on our own will be several hours of debate, with to late 90s following the Internet boom, limited resources, but we begin to ex- votes expected on the nominations dur- when hundreds of hungry tech startups perience the mysterious movement of ing this afternoon’s session. The Sen- across the country began using it to re- Your providence. The company of heav- ate may also consider any appropria- cruit high tech workers from informa- en plus people and circumstances begin tions conference reports available for tion technology jobs, mostly from to rally to our aid. Unexpected re- action. India, China, Canada, and Britain. sources are released; unexplainable I thank my colleagues for their at- Some 420,000 are here today. good things start happening. We claim the promise of Psalm 37, ‘‘Commit your tention. Those individuals have filled a crit- way to the Lord, trust also in Him, and f ical shortage of high-tech workers in He shall bring it to pass.’’—vs 5,7. You this country, which in fact, still exists AMERICAN COMPETITIVENESS IN today. are our Lord and Saviour. Amen. THE TWENTY-FIRST CENTURY f The American Competitiveness in the ACT OF 2000 Twenty-first Century Act of 2000 pro- PLEDGE OF ALLEGIANCE The PRESIDENT pro tempore. The poses to raise the caps for the number The Honorable CRAIG THOMAS, a Sen- Senator from Nevada is recognized. of H–1B workers that employers can ator from the State of Wyoming, led Mr. REID. Mr. President, it is my un- bring into the United States for the the Pledge of Allegiance, as follows: derstanding that we are now in the next 3 years.

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S9643

. S9644 CONGRESSIONAL RECORD — SENATE October 3, 2000 When Congress set the 65,000 cap on Demand for core information tech- myself such time as I may need to H–1Bs in 1990, it was not based on any nology workers in the United States is speak this morning. economic data or scientific study of expected to grow by 150,000 a year for Mr. President, the H–1B visa pro- the need. the next 8 years, a rate of growth that gram, which we will be addressing And, this limitation was not chal- cannot be met by the domestic labor today when we vote on the American lenged until 1997 when for the first supply alone. Competitiveness in the Twenty-first time the cap was reached at the end of H–1B workers create jobs for Ameri- Century Act, is the subject of much in- the fiscal year. cans by enabling the creation of new teresting debate in our country today. The following year the cap was again products and spurring innovation. One thing everybody agrees on is we reached, but this time by May 1998. The High-tech industry executives esti- face a serious worker shortage with re- cap has been reached earlier in each mate that a new H–1B engineer will spect to high-tech employment and successive year. typically create demand for an addi- skilled labor in America today. Most of In response to the increased demand, tional 3–5 American workers. the recent studies that have been pro- language was incorporated into the T.J. Rodgers of Cypress Semicon- duced on this subject indicate there are Omnibus Appropriations Act of 1998 to ductor testified last year before Con- perhaps as many as 1 million unfilled raise the cap on H–1B visas to 115,000 in gress that for every H–1B professional positions in information technology fiscal year 1999; and 115,000 in fiscal he hires, he creates at least 5 more U.S. today. The projections are that we will year 2000; and 107,500 in fiscal year 2001. jobs to develop, manufacture, package, be creating somewhere between 150,000 Under the Omnibus Act of 1998 the sell and distribute the products cre- and 200,000 new positions in these areas cap would return to its original level of ated. in each of the next 10 years. Yet in 65,000 after fiscal year 2001. H–1B workers are not driving down spite of the very lucrative and, I think, Despite the increases, continuing wages for native workers, in fact, substantive nature of these jobs, our economic growth has led many in the wages are rising fastest and unemploy- training programs, our college pro- technology sector particularly, to call ment rates are lowest in industries in grams, our high school programs are for a further increase in the caps. which H–1B workers are most preva- not producing enough American work- In fiscal year 1999 the INS reached lent. ers to fill these posts today. the H–1B cap in June and stated that High tech wages have risen 27 percent This presents us with a short-term there my have been more than 20,000 in the last decade, compared to 5 per- problem and a long-term challenge. additional visas issued over and above cent for the rest of the private sector. The short-term problem is how to fill the ceiling. The current unemployment rate for these key positions immediately so The higher demand for H–1B visas electrical engineers is 1.4 percent, 1.7 that we don’t lose opportunities to for- has continued in fiscal year 2000. percent for systems analysts and 2.3 eign competitors, or so that we don’t In March of this year, the INS percent for computer programmers. force American businesses to move off- stopped accepting new H–1B applica- The vast majority of H–1B workers shore to where skilled workers might tions, having enough cases in its pipe- are being paid the legally required pre- live. The long-term problem is to de- line to reach the cap. vailing wage or more, undercutting termine what we can do to make cer- In order to compensate for the de- charges that they are driving down tain that in the future we have a suffi- mand, the INS began processing peti- wages. cient workforce of trained Americans tions in August 2000 for workers who The H–1B program mandates that to fill these jobs, because it is quite are set to begin working fiscal year these individuals be paid the higher of clear to me that immigration can only 2001. the average wage paid to workers in an be a stopgap, short-term solution to Based on past years’ filling patterns, area, or what the employer pays their these problems. the INS may have as many as 60,000 U.S. workforce whichever is higher. I am pleased we have reached an cases already pending to count against H–1B workers in many cases, because agreement on this legislation across the 107,500 visas now available. of their unique or highly demanded the aisle with our colleagues because Most employers predict that the cur- skills, earn more than U.S. workers. we need to act today. The legislation rent visa allotment will expire before For the reasons mentioned I am before us will allow a short-term in- January. happy to support the American Com- crease in the number of skilled profes- There is no question we need to raise petitiveness in the Twenty-first Cen- sionals allowed to work in this country the cap for H–1B professionals. tury Act of 2000. on H–1B temporary visas and will help I have always been in support of H– The ability to fill gaps in the work- and encourage more disadvantaged 1B, as many of my colleagues have force with qualified foreign national young people to pursue studies related been. professionals rapidly, helps American to high-tech. It will assure those young But I have also been in support of the business stay strong. people of good jobs and good wages far Latino Immigrant and Fairness Act, Mr. President, I am happy to support into the future, and I believe it will which I am a cosponsor and which I H–1B. It is good legislation that is very also provide resources for the training continue to strongly support. important. I am disappointed that we and retraining of people in the work- But supporting one does not rule out are not voting at the same time on the force today, so they can begin to fill supporting the other. Latino and Immigrant Fairness Act, more of these positions as well. American industry’s explosive de- which we debated extensively last To help young people, this bill will mand for skilled and highly skilled week, and I am sorry to say that on a provide, we estimate, over 60,000 schol- workers is being stifled by the current straight party line vote we were pre- arships for American students in the federal quota on H–1B visas for foreign- vented from voting up or down on this math and science fields. Scholarships born highly skilled workers. issue. That is a disappointment to me like this have already been available as The quota is hampering output, espe- and to many millions of people in this a result of the American Competitive- cially in high-technology sectors, and country. I think the majority made a ness Act, which we passed in 1998—leg- forcing companies to consider moving terrible mistake in that regard. But islation that began the process of di- production offshore. Some companies that does not take away from the need verting application fees connected to already have. for the H–1B legislation we are going to the H–1B visas into scholarship and re- The number of H–1B visas was unlim- pass today. training funds. ited before 1990, when it was capped at I yield the floor. The bill’s training provisions will 65,000 a year. The PRESIDENT pro tempore. Who provide over 150,000 U.S. workers with In 1998 the annual cap was raised to yields time? access to training to help prepare them 115,000 for 1999 and 2000 and currently The Senator from Michigan is recog- for the high-tech jobs of today and to- there is a need once more to raise that nized. morrow. Interestingly, Mr. President, cap. Mr. ABRAHAM. The chairman of the there is overwhelming unanimity that The shortage shows no sign of abat- Judiciary Committee is not here. I be- we must act in this fashion if we are to ing. lieve he would approve of my yielding keep our economy strong. The support October 3, 2000 CONGRESSIONAL RECORD — SENATE S9645 from across the political spectrum for Let me just say that in the short there are more resources directed at this H–1B visa increase is strong, rang- term the only appropriate way we are education and the training of workers ing from the White House—not just the going to be able to deal with this is who are in the workforce today, it is current occupant and staff but such through an increase in the H–1B visa all part of what we must address or we people as former chief economic ad- program. But the long-term solution will find that in the global economy of viser to President Clinton, Laura cannot be based on immigration alone. the 21st century our competitive edge D’Andrea, Federal Reserve Chairman Indeed, this program is only a 3-year is going to be somewhat reduced. We Alan Greenspan, and legislative leaders increase. certainly don’t want that to happen. on both sides of the aisle. I think it is clear that the world now I compliment Senator HATCH for his Indeed, in hearings we have con- is competing. Virtually any country ongoing leadership on this issue. We ducted in the Immigration Sub- that wants to be competitive is work- have worked together since 1998 when committee, we have heard from people ing hard to attract the most talented we passed the American Competitive- throughout industry in America, not and skilled people to their country and ness Act. He has been a leader on these just the high-tech companies we think to their businesses to create strength issues for many years. His leadership in of when we think about these workers in their economies. Thus, America the passage of this legislation, and his but people who employ high-tech work- must, in addition to the passage of to- willingness to come to the floor and ers in other phases and forms of manu- day’s legislation, focus even more of work over a very long period of time to facturing across the board; they have our resources and more of our atten- make sure this bill, which we passed all indicated that the need to fill these tion on the important need of both en- out of the Judiciary Committee by an provisions is significant and imme- couraging young people to pursue ca- overwhelming vote many months ago, diate. Indeed, we received countless reers in math, science, engineering, finally, today, gets the consideration it pieces of information that led to a computer sciences, and so on but also deserves. I think he deserves all of our pretty clear indication that if we don’t in retraining workers to try to fill thanks. Hopefully, this process will allow these technically skilled workers more of these positions because I pre- now move quickly towards completion, to come here, companies will be forced dict that in the very near future immi- and we will be able to provide the addi- to move product lines, divisions per- gration will not even come close to tional workers needed to make sure the haps, and whole operations overseas. That won’t help Americans. That will meeting our employment needs with key positions in technology in our cost Americans jobs. Of course, there respect to these high-tech positions. country will be filled. For those reasons, the provisions I say also to those who have raised are those who have criticized this pro- which were launched in the 1998 Amer- some of the other immigration-related gram over the years—people who are ican Competitiveness Act, and which issues that as chairman of the sub- protectionist in their views on these are strengthened even in this legisla- committee, I remain anxious to con- sorts of issues. But it is important to tion, I hope by the time we finish this make sure the record is clear that we tinue to work with people—whether it process, will provide even more re- can build in protections for American is on the H–2A visa program, the agri- workers to make certain that they can- sources for education and training cultural workers issues, or Latino fair- not be taken advantage of through the which are key to the long-term needs ness issues, and so on. It is unfortunate high-tech H–1B program. that we have in this country. that we couldn’t come to an agreement Indeed, in 1998 we addressed many, if They alone will not be enough be- on this legislation some months ago not all, of the issues which were raised cause it is pretty obvious that to gen- when we were trying to work out an with respect to H–1B visas and the pos- erate the kind of skilled workforce in agreement. But certainly the sub- sible displacement of Americans work- the 21st century needed to fill the sorts committee intends to continue to focus ers. of technology positions that are going on these issues into the future. I look In 1988, the bill wrote into law three to be created, whether they are posi- forward to working with my colleagues types of lay-off protections for Amer- tions in the research area or manufac- on all of these. ican workers. And we have also, of turing area or anywhere else, requires In conclusion, I thank Senator HATCH course, included in the H–1B program us to go well beyond even what we will for working with me on this. I appre- requirements that the prevailing wage have in this legislation. ciate his leadership very much. be paid to people who come in under I am very dedicated to working to I yield the floor. this program so companies cannot make sure that we provide the Federal Mr. MCCAIN. Mr. President, I rise game the system and somehow or an- support necessary to make it possible today to express my strong support for other in any way pay foreign workers for those kinds of technology positions S. 2045, the American Competitiveness less and thus deprive American work- to be filled by American workers. But in the Twenty-First Century Act. Al- ers of opportunities. But, as I said, it is going to take a comprehensive ef- though it deals ostensibly with the visa whether it is the Silicon Valley or the fort—an effort that is not just a Fed- cap on foreign-born high-tech workers, Research Triangle or the traditionally eral program but one that incorporates its effect would be far more profound— well-known high-tech sectors or wheth- the private sector as well as the public to enhance the dynamism of the Amer- er it is in my State of Michigan, the sector, the corporate sector, and the ican economy at a time when U.S. com- need for these workers is extraor- government sector at all levels, and to panies, if given access to the necessary dinarily strong. involve our education system at all resources, are poised to dominate the For instance, the Michigan Economic levels or we will find ourselves seeing Information Age for decades to come. Development Corporation is spending foreign competitors gaining ground on As the representatives of the American $2.7 million on an ad campaign and a America when it comes to leading the people, we in Congress should do all we revamped web site to attract knowl- world with respect to advanced tech- can to contribute to their potential for edgeable workers to our State. The nologies. success in the global economy. head of our economic development di- This means that not only must we I am convinced that the best thing vision says we are the only State to make sure that the students today get government can often do to advance fully redirect our resources to recruit- the training they need but that the col- the fortunes of the private sector is to ing businesses for recruiting workers lege programs be expanded and the re- stay out of its way. I support this bill to Michigan. Indeed, in one county training programs be generated. It also because it makes progress toward that alone—Oakland County—the estimate means that we must address so many end, by improving companies’ flexi- is that we currently need 10,000 engi- other issues—whether it is passing our bility to hire the talent they need, neers just to fill the positions that are Millennium Classrooms Act which will while providing for the regulatory projected to be needed today and in the provide more computer courses for the framework and new educational oppor- immediate future. If we can’t find classrooms of America, especially tunities to protect and promote Amer- those people, those companies and the those in the economically disadvan- ican workers. By raising the arbitrary jobs that are connected to those engi- taged areas or whether it means work- cap on temporary immigrant visas for neering jobs will go elsewhere. It is a ing together in a collaborative effort skilled foreign workers—a cap set in challenge that we must address. with the private sector to ensure that 1990 and insufficiently increased in S9646 CONGRESSIONAL RECORD — SENATE October 3, 2000 1998—this legislation gets government skilled American workers. My bill, S. partnerships in K–12 math, science, and out of the way of American companies, 1804, the 21st Century Technology Re- technology through National Science universities, and research labs which sources and Commercial Leadership foundation grants, as my legislation simply cannot hire the skilled profes- Act, addresses the need to improve originally proposed. Inclusion of these sionals they need in the domestic labor Americans’ skills in math, science, en- provisions drawn from S. 1804 signifi- market because of an arbitrary, anach- gineering, and technology in order to cantly strengthens the final bill we are ronistic cap on H–1B visas that does maintain our world leadership in high- voting on today. As originally intro- not reflect the forces of supply and de- tech fields. Several other bills before duced, S. 2045 did not contain these mand in the American economy today. Congress would raise the H–1B visa cap, components, and I am pleased that the T.J. Rodgers, president and CEO of but focus less on the long-term goal of sponsors were able to incorporate Cypress Semiconductor Corporation, educating and training Americans to them. captures best the logic of the H–1B pro- fill available high-tech jobs. Ultimately, the answer to the short- gram when he says, ‘‘It takes two per- S. 1804 would encourage innovation age of highly skilled workers must be cent of Americans to feed us all, and in improving elementary and sec- found at home, in the form of a new five percent to make everything we ondary education in math, science, and generation of Americans educated in need. Everything else will be service engineering, as well as provide power- the skills demanded by our knowledge- and information technology, and in ful incentives to retrain American based economy in this ear of that world humans and brains will be workers who lack the skills to compete globalization. In the meantime, raising the key variable. Any country that in the high-tech economy. In the in- the H–1B cap is the right thing to do. S. would limit its brain power to a single terim, to provide for the requisite num- 2045, by increasing high-tech visa ad- select group from that country alone is ber of highly skilled professionals until missions while devoting new resources going to self-destruct.’’ we have educated and trained a suffi- to the education and training of Amer- The American Competitiveness Act cient number of Americans to fill these ican students and workers, represents of 1998, which I co-sponsored, raised the jobs, the bill would lift the cap on H–1B the way forward for the United States annual cap on H–1B visas for skilled visas through 2006. All current infor- as we seek to sustain our leadership in professionals from 65,000 in Fiscal Year mation indicates that the supply of the Information Age. I commend its 1998 to 115,000 in both FY 1999 and FY American professionals in the math, swift passage to my colleagues on both 2000, and to 107,500 in FY 2001. Nonethe- science, engineering, and technology sides of the aisle. less, even the higher number of H–1B fields will not meet the demand of Mr. BROWNBACK. Mr. President, I admissions authorized by Congress for American industries through at least stand in support of the American Com- FY 1999 was reached only eight months that date. petitiveness in the Twenty-First Cen- into that fiscal year, and the FY 2000 Specifically, S. 1804 provides for tury Act (S. 2045) which I have co-spon- sored with Senators ORRIN HATCH and cap was reached in March 2000, or only grants to be awarded under the super- SPENCER ABRAHAM. This legislation six months into the current fiscal year. vision of the Secretary of Commerce in S. 2045 authorizes an increase in the consultation with the Office of Tech- would increase the number of H–1B annual H–1B cap to 195,000 through FY nology Policy and the National Science visas for skilled labor available to U.S. 2002. All evidence indicates an increase Foundation, on a competitive basis, for employers from 115,000 to 195,000 slots, is warranted. However, there is little implementing programs that will im- starting next fiscal year, among other evidence supporting the specific figure prove the math, science, engineering, measures. This is direly needed legislation. of 195,000. In fact, industry estimates of and technology skills of American stu- Alarmingly, this year’s allotment of H– the number of unfilled high-tech jobs dents and professionals. The types of 1B visas ran out very early this year, in range from 300,000–800,000. programs to be awarded grants are not March. As a result, hundreds of thou- The original H–1B visa ceiling of specified so that Congress does not un- sands of highly skilled positions have 65,000, enacted in 1990, did not ade- intentionally foreclose new and more gone unfilled throughout America. quately foresee American companies’ innovative ideas from surfacing. The America is currently riding a very need for high-tech foreign workers. As grants would be funded from current high wave of record economic growth, this year’s Judiciary Committee report H–1B visa application fees and could be unmatched in our generation. With accompanying S. 2045 states, by 1998 awarded to companies, organizations, that expansion, the number of avail- ‘‘access [to skilled foreign personnel] schools, school districts, teachers, and able jobs which have gone unfilled has was being curbed by a cap on H–1B institutions of higher learning. increased dramatically. Unfortunately, visas put in place almost a decade ear- My legislation would use H–1B visa we have begun to place a cap on this lier, in 1990, when no one understood fees to encourage innovation in our extraordinary economic expansion by the scope of the information revolution schools, to teach American students limiting the pool of skilled laborers that was about to hit.’’ Yet, our impor- the skills they will need to succeed in that companies can draw upon by the tant 1998 legislation raising the H–1B the 21st century economy, and in our present limited visa allotment. caps similarly missed the mark by un- companies, to train and retain Amer- The hardest hit sector is the com- derstating domestic demand for highly ican workers in the high-tech skills puter industry. This industry functions trained professionals. As the 2000 Com- American businesses rely upon. The in six months cycles, with new prod- mittee report states, ‘‘In fact, in 1998, legislation would support corporate ucts being developed and marketed the error Congress made was in under- partnerships with schools or school dis- within this short period of time. The estimating the workforce needs of the tricts to improve math and science cur- computer industry suffers a severe lack United States in the year 2000. . . . As ricula; scholarships for students will- of qualified information technicians. a result, the 1998 bill has proven to be ing to study advanced engineering or Less workers means a longer develop- insufficient to meet the current de- technology fields, and for those who ment period which means a loss of mand for skilled professionals.’’ agree to teach math or science for a pe- competitive edge. This ultimately re- While I strongly support passage of riod of time after graduating college; sults in a loss of market, business and this legislation to increase H–1B visa and innovative worker training and re- jobs. In this scenario, everyone loses, admissions, I also wonder: given Con- training programs within American including the economy, American con- gress’ shortsightedness each time we companies. It leaves open grant sup- sumers, companies and workers. have attempted to forecast the private port for any proposal that promises to To avoid this wasteful and unneces- sector’s demand for highly skilled improve the American talent pool in sary result, we must adopt this legisla- workers, how are we to know this time high-tech fields. tion and expand the visa slots so that that we have struck the right balance? Although I regret that the Congress American companies can continue to To resolve this dilemma, I introduced chose not to take this approach in grow. This is an urgent problem which legislation on October 27, 1999, that favor of that proposed by S. 2045, I cannot wait until next year. If we fail would lift the H–1B ceiling while focus- commend the sponsor of the pending to pass this legislation, we could sig- ing more heavily on the underlying legislation for incorporating provisions nificantly jeopardize our notable com- problem resulting in a shortage of involving public-private education petitive edge in a fierce global market. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9647 Some falsely charge that this legisla- Senate action to increase the ceiling centives for businesses who provide IT tion gives away our most lucrative on H1B visas for the next three years, training for workers, I am very pleased jobs, while skipping over American however, is also a warning that we are that S. 2045 authorizes funding for workers. This is not true. Clearly, not providing sufficient incentives or high-tech partnerships, as I proposed in American employers would rather se- education opportunities to encourage S. 2347, through the Department of lect American workers first over for- our young people, as well as individuals Labor. Funding for the training would eign guest workers who must be proc- of all ages, to consider careers or re- come from the fees collected under the essed through a burdensome immigra- training in information technology. In H–1B visa program. S. 2045 also expands tion bureaucracy involving significant 1998, Congress passed legislation to in- K–12 training for educators in IT time delays and complications. This crease the number of H1B visas for through the National Science Founda- visa process is costly and cumbersome skilled workers to enter the U.S. At tion, including the professional devel- for employers, and can easily be avoid- that time, the Department of Com- opment of math and science teachers in ed by hiring American workers. How- merce reported a shortage of 600,000 the use of technology in the classroom. ever, American businesses cannot fill skilled IT workers in the U.S. Since Expanding opportunities for IT train- these positions with only American 1998, the demand for skilled workers ing for educators was another impor- workers anymore and are forced to has increased dramatically. tant objective in S. 2347. S. 2045 also search overseas for badly needed tal- Earlier this year, the Information helps our educational and research ent. Our economy has expanded that Technology Association released its communities by exempting them from most recent report, ‘‘Bridging the significantly and these workers are the cap on recruiting skilled academic Gap’’, on the demand for skilled IT needed that badly. professionals. If we do not allow American-based workers in the U.S. That report esti- Finally, I would like to express par- mated a shortage of more than 843,000 businesses to meet this skilled labor ticular appreciation to the managers of skilled workers. Moreover, the Depart- need, some may move their operations the bill for accepting my amendment ment of Labor projected that the U.S. to other countries which will gladly ac- regarding J–1 visa waivers. My amend- economy will require more than 130,000 commodate them. Why would we en- ment will improve underserved com- new IT workers every year for the next courage this unfortunate result when ten years. Clearly, with our rapidly ex- munities’ access to physician services we can attain just the opposite, that of panding economy, and the critical need by ensuring the Conrad State 20 J–1 attracting new and vibrant businesses, to maintain our leadership in informa- visa waivers do not count against the by expanding our labor pool? tion technology, we face an extraor- H–1B visa cap. In addition to the new visa allot- Mr. President, the shortage of skilled dinary challenge from this shortage of ments, this legislation creates 20,000 high-tech workers will continue to be a skilled high-tech workers. As econo- new college scholarships to train mies throughout the world recover, major issue during the 107th Congress, American workers in greater numbers. particularly in Asia, we cannot con- and I believe it will be necessary for us This encourages more degrees among tinue to assume that we will meet our to provide additional training incen- Americans in math, computer science, demand for high-tech workers by in- tives in the coming years to meet the and engineering—all areas of expertise creasing the cap on HIB visa every few growing domestic demand for IT work- presently suffering a shortage. Thus, years. ers. As I noted earlier, as economies this bill addresses both present and fu- Throughout this debate on the IT throughout the world continue to ex- ture worker needs. worker shortage since 1998, I have rec- pand, and countries including Singa- On October 1st the new fiscal year ommended incentives to encourage IT pore, China, and Malaysia develop their began, and the Immigration and Natu- worker training and partnerships be- own high tech corridors, it will be dif- ralization Service estimates that we tween businesses and the education ficult to recruit high-tech workers will use up the entire allotment of H– community. Earlier in the 106th Con- from these Asian countries to fill posi- 1B visas before the end of this Decem- gress, I introduced legislation, S. 456, tions in the U.S. ber. In other words, the H–1B visa al- to authorize a tax credit of up to $6,000 In my view, rather than continue our lotment will be used up in three for employers who provide IT worker dependence on H1B visa holders to months. That leaves the balance of training. Unfortunately, the Senate meet our skilled worker demand, we nine months of no additional visas for has not yet adopted this legislation. I must expand our efforts to encourage desperate American computer compa- am, however, very pleased that Vice young people to consider careers in in- nies, among other businesses, which President GORE has recognized the im- formation technology and to train cur- will suffer this serious lack of workers. portance of this IT worker training in- rent workers to enter the IT field. This That’s bad business and bad politics, centive and included this proposal as a will continue to be a top priority for which can be corrected with this bill. priority on his information technology me during the 107th Congress, and I Americans continue to dream bigger agenda. look forward to working with my col- and create greater innovations, gener- More recently, I also introduced S. leagues and the information tech- ating an unmatched prosperity which 2347, the Information Technology Act nology community on this critical we should encourage, not discourage. of 2000, to encourage IT training part- issue. I commend my colleagues on the That’s why we should support the nerships between universities or col- Senate Judiciary Committee for re- American Competitiveness in the leges and the information technology porting a measure that provides impor- Twenty-First Century Act of 2000. community through a program of tant incentives for IT training as well Mr. CONRAD. Mr. President, today matching Federal grants. I urged that as expanded education and training op- the Senate will complete action on one these partnerships focus on training for portunities for teachers through the of the most important bills in the 106th Americans that have traditionally not National Science Foundation. Congress, S. 2045, the American Com- participated in the growth in informa- Mr. HATCH. Mr. President, I reserve petitiveness in the 21st Century Act, tion technology—women, veterans, Na- the remainder of our time. legislation that will help ensure our tive Americans, dislocated workers, Mr. LEAHY. Mr. President, how nation’s continued growth and leader- seniors, and students who have not much time is remaining on this side of ship in information technology (IT). S. completed their high school diploma. I the aisle? 2045 will authorize visas for 195,000 am especially pleased to have had such The PRESIDING OFFICER (Mr. high-tech professionals to work in the strong endorsements for this proposal THOMAS). The Senator from Vermont U.S. to meet the growing demand for from groups including the Disabled has 10 minutes. The Senator from Utah skilled IT workers throughout our Veterans of America, National Edu- has 1 minute 2 seconds. economy. The legislation also author- cation Association, American Associa- Mr. LEAHY. Mr. President, I am very izes long term initiatives to ensure tion of University Women, Green pleased the Senate is poised to pass that Americans of all ages are trained Thumb and the Computing Technology legislation to increase the number of to fill critical IT positions in our Infor- Industry Association. H–1B visas. The bill that we will pass mation Age economy. I am pleased to Mr. President, while I regret that we today is the result of long negotia- strongly support this legislation. have not been able to authorize tax in- tions. It is significantly improved from S9648 CONGRESSIONAL RECORD — SENATE October 3, 2000 the version reported from the Judici- er shortages in certain key areas of our S. 2045 to investigate possible H–1B vio- ary Committee earlier this year. economy, and I have been involved in lations. This is an important step that will promoting efforts to ease those short- I continue to believe that we could allow American employers to com- ages. Last year, I cosponsored the have passed this legislation many pensate for the current shortage in HITEC Act, S. 1645, legislation that months ago. The Judiciary Committee highly skilled employees by hiring Senator ROBB has introduced that reported S. 2045 more than six months such employees from abroad. would create a new visa that would be ago, with my support. During this long Thanks to the efforts of Senators available to companies looking to hire stretch of inactivity, it has often ap- KENNEDY, LIEBERMAN, FEINSTEIN, and recent foreign graduates of U.S. mas- peared that the Republican majority others, this bill also includes strong ter’s and doctoral programs in math, has been more interested in gaining education and worker training compo- science, engineering, or computer partisan advantage from a delay than nents. That is going to help American science. in actually making this bill law. The workers and students to erase the Although S. 2045 uses a broader ap- Democratic Leader said repeatedly skills shortage. proach, the goals are similar. Allowing that he wanted to pass a bill, and that No one on this side of the aisle sees workers with specialized skills to come although Democratic members did H–1B visas as a permanent solution. It to the U.S. and work for 6-year periods, want the opportunity to offer amend- is a stopgap until our renewed commit- as the H–1B visa does, helps to allevi- ments, he was ready to agree to limit ment to education and training pays ate worker shortage. In the recently debate on those amendments so that dividends. I would like to thank all of ended fiscal year, 115,000 such visas we could conclude all work on this bill those in the corporate world who have were available, and they ran out well in a single day. Those offers were supported our efforts on education and before the fiscal year ended. That is rebuffed again and again by the major- training. why we have to change the law now. ity. Although I am happy about the pas- If we do not change the law, there Months went by in which the Repub- sage of this bill, I am somewhat dis- will actually be fewer visas available in lican majority made no attempt to ne- appointed in the severe way in which fiscal year 2001, as the cap drops to gotiate with us, time which many debate on this bill was restricted. 107,500. This will simply be insufficient members of the majority instead spent I had hoped that our consideration of to allow America’s employers—particu- trying to blame Democrats for the this bill would allow us to achieve larly in the information technology in- delay in their bringing this legislation other crucially important immigration dustry—to maintain their current to the floor. At many times, it seemed goals that have been neglected by the rates of growth. As such, I think that that the majority was more interested majority throughout this Congress. we need to increase the number of in casting blame upon Democrats than I had hoped that the Republican ma- available visas dramatically. The bill in actually passing legislation. Instead jority could agree to at least vote on, if we will vote on today accomplishes of working in good faith with the mi- not vote for, limited proposals designed that goal, increasing the number of nority to bring this bill to the floor, to protect Latino families and other visas to 195,000 for FY 2001. It also con- the majority spent its time trying to immigrant families. tains a provision that will allow edu- convince leaders in the information I had hoped that the majority would cational institutions to use H–1B visas technology industry that the Demo- consider proposals to restore the due without counting against the cap, cratic Party was hostile to this bill, process that was taken away from im- which will greatly help our colleges which was always false. Considering migrants by the immigration legisla- and universities, which are often on a that three-quarters of the Democrats tion that Congress passed in 1996. different hiring schedule than our na- on the Judiciary Committee voted for I thought we could work together to tion’s other employers and have been this bill, and that the bill has numer- restore some of America’s lost luster shut out in the past from obtaining ous Democratic cosponsors, including on immigration issues. That did not needed visas. Senator LIEBERMAN, this partisan ap- happen. Of course, H–1B visas are not a long- peal was not only inappropriate but ab- Still, we did have a vote on the term answer to the current mismatch surd on its face. Latino and Immigrant Fairness Act between the demands of the high-tech I do regret that we have not made that showed where the Senate stood on industry and the supply of workers more progress on the longstanding pro- issues of extreme importance to the with technical skills. Although I be- posals that have been combined now Hispanic community, Eastern Euro- lieve that there is a labor shortage in under the Latino and Immigrant Fair- peans, and the Liberians. On that vote, certain areas of our economy, I do not ness Act. These provisions had been regrettably, every Republican voted believe that we should accept that cir- proposed throughout this Congress, and no. They refused to even consider the cumstance as an unchangeable fact of in some cases in previous Congresses. amendment. We should have had a life. We need to make a greater effort They are solid, pro-family proposals vote. Senators should have the polit- to give our children the education they that would reward immigrants who are ical courage to either vote for it, or need to compete in an increasingly working and paying taxes in the United vote against it. technology-oriented economy, and States. But the Republican majority— I hope my Republican colleagues offer adults the training they need to as has been shown repeatedly on the have the chance to reevaluate their po- refashion their careers to suit the Senate floor over the past week—re- sition. The President has said he wants changes in our economy. This bill fused even to consider these proposals, Congress to address these issues before takes significant steps to improve our instead branding them as rewards for we adjourn. Many Democratic Members education and training programs. Since illegal immigrants. of Congress and I join him in that view, employers pay a $500 fee for a visa, in- Thankfully, the President has taken and we will continue to work to see creasing the number of visas will lead action to provide temporary protection that this Congress addresses the real to an increase in revenue generated for for the Liberians who faced imminent needs of real people, whether they be worker training programs, scholarships return to their conflicted nation, and native-born or immigrant. for disadvantaged students, and fund- who would have been protected by the Both my mother and my wife are ing for public-private partnerships to LIFA legislation. It is shameful that first-generation Americans. I think if improve science and technology edu- the Congress has not taken action on Congress had taken some of the atti- cation. the Liberians’ behalf, despite the dog- tudes toward immigration that some I also want to note that the legisla- ged and dedicated efforts of Senator take today when their families were tion extends current law’s attestation JACK REED. seeking to enter the United States, nei- requirements. These requirements I am worried about the things we ther might be in this country. force employers to certify that they have not done on immigration issues in I agree that we need to increase the were unable to find qualified Ameri- this Congress. It is a disturbing but in- number of H–1B visas. The stunning cans to do a job that they have hired a creasingly undeniable fact that the in- economic growth we have experienced visa recipient to fill. The Labor De- terest of the business community has in the past eight years has led to work- partment also retains authority under become a prerequisite for immigration October 3, 2000 CONGRESSIONAL RECORD — SENATE S9649 bills to receive attention on the Senate the front pages of America’s news- a decade, and it has been a tremendous floor. In fact, we are in the final days papers. Imagine what happens to such success in allowing American citizens of the Congress, and this is the first people when they are forced to return to travel to some of our most impor- immigration bill to be debated on the to their native lands. tant allies for up to 90 days without ob- floor. Even humanitarian bills with bi- I also urge the Senate to take up S. taining a visa, and in allowing citizens partisan backing have been ignored in 3120, the Immigrant Fairness Restora- of those countries to travel here under this Congress, both in the Judiciary tion Act, which was introduced by Sen- the same terms. Countries must meet a Committee and on the floor of the Sen- ators KENNEDY and BOB GRAHAM. This number of requirements to participate ate. bill would go a long way toward in the program, including having very The majority has shown a similar undoing the damage done to due proc- low rates of visa refusals. Of course, lack of concern for proposals by Sen- ess by the 1996 immigration laws, and the visa waiver does not affect the need ators to restore the due process protec- the House has already passed related, for international travelers to carry tions were removed by the passage of bipartisan legislation. Among other valid passports. the Antiterrorism Death Penalty Act things, S. 3120 would eliminate the ret- Despite having expressed no sub- and the Illegal Immigration Reform roactive features of those laws, which stantive objection to this bill, the ma- and Immigrant Responsibility Act 4 have led to the deportation of legal jority refused to allow this legislation years ago. permanent residents who committed to go forward for months. I note for the There are still many aspects of those relatively minor crimes decades ago. I record that every single Democratic laws that merit our careful review and have sponsored legislation that would Senator said they would vote for this rethinking, including the inhumane at the very least provide due process to bill. Those from the business commu- use of expedited removal, which would those who have served in our Armed nity and elsewhere who asked about be sharply reformed by S. 1940, the Ref- Forces, the Fairness for Immigrant the bill were assured by Senator ugee Protection Act, which I have in- Veterans Act, S. 871. This legislation DASCHLE, Senator REID and I that troduced with Senator BROWNBACK and has been endorsed by the American Le- every single Democratic Senator sup- our 10 cosponsors. gion, the Vietnam Veterans of Amer- ported this. But the Refugee Protection Act has ica, and other veterans’ groups. The Even though the travel industry and not even received a hearing in the Ju- Republican majority has refused to the State Department urged Repub- diciary Committee, despite my re- consider even this narrow reform. licans to allow this legislation to pass, quests as ranking member. This is As important as H–1B visas are for and even though the visa waiver pilot quite unusual, because every com- our economy and our nation’s employ- program had expired April 30, the ma- mittee I have served upon has honored ers, this is not the only immigration jority refused to let this bill go for- such requests on the part of the rank- issue that faces our nation. Although ward. They apparently held the bill to ing member. When I was chairman, any the legislation we are concerned with use as leverage to promote unrelated request made by a ranking member was today is good legislation, it does not legislation, just a chit to be used when- honored. Indeed, I have never seen any- test our commitment to the ideals of ever it seemed to fix a whim. I am glad thing like this, especially on a bill that opportunity and freedom that America they finally have reversed course. has such bipartisan support. has represented at its best. Those tests The House passed legislation months The bill addresses the issue of expe- will apparently be left for another day, ago to make this program permanent, dited removal, a process under which or another Congress. heeding the calls of American tourists aliens arriving in the United States In closing, I commend our leaders in and business people who are able to can be returned immediately to their this matter: Senator DASCHLE, Senator travel to almost 30 other nations with native land at the say-so of low-level HARRY REID, Senator KENNEDY, and only a passport because of the pro- INS officers. Expedited removal was their able staffs. In particular, I would gram. By playing political games, the the subject of a major debate in this like to thank Andrea LaRue with Sen- Senate jeopardized our relationships Chamber in 1996. The Senate voted to ator DASCHLE, Eddie Ayoob with Sen- with the other nations who take part use it only during immigration emer- ator REID, Esther Olavarria and Melody in the program. Thankfully, we have fi- gencies. The Senate-passed restriction Barnes with Senator KENNEDY and the nally moved beyond these games and was removed at probably the most par- Democratic staff of the Immigration are set to send this legislation back to tisan conference committee I have ever Subcommittee, and Tim Lynch with the House for final approval. witnessed. The Refugee Protection Act my Judiciary Committee staff. I have I would like briefly to note the inclu- is modeled closely on the 1996 amend- not heard thanks from the other side. I sion of an amendment in the visa waiv- ment. I hope someday we can pass it. thank Senator ABRAHAM and his staff er bill that is of major importance to We should. for cooperation in improving the bill my State of Vermont and many other As a result of the adoption of expe- and Senator HATCH for allowing the States. This provision extends the EB– dited removal, we now have a system of matter finally to proceed to conclu- 5 immigrant investor pilot program, removing people arriving here either sion. I also thank Lee Otis and Stuart which allows foreign investors to ob- without proper documentation or with Anderson with Senator ABRAHAM and tain resident status in return for sub- valid documents that INS officers sus- Sharon Prost with Senator HATCH for stantial investments in regions that pect are invalid. This policy ignores their hard work on this legislation. are not sharing in the general Amer- the fact that somebody who is fleeing a VISA WAIVER PERMANENT PROGRAM ACT ican prosperity. In my State, this pro- despotic regime is quite often unable In addition to passing S. 2045, the gram is starting to bear fruit—I am to go in and get a passport from the Senate has also agreed to pass H.R. happy that we are extending it for an same regime they are trying to flee, ei- 3767, legislation to make the visa waiv- additional three years so that we can ther because of religious persecution or er pilot program permanent. We pass ensure that its potential is realized. some other type of persecution. The this legislation only because Senator In conclusion, I would like to thank only way to get out of there is with a DASCHLE worked with Senator KEN- Senator KENNEDY for all of his work on forged passport. NEDY and me to make sure that the immigration issues, from H–1B to visa In the limited time that expedited re- majority agreed to release its hold on waiver to the countless proposals he moval has been in operation, we al- the bill as part of our broader agree- has initiated and supported to help im- ready have numerous stories of valid ment on H–1B legislation. I hope that migrant families. He has consistently asylum seekers who were kicked out of Senator DASCHLE’s commitment to this worked across the aisle with Senators country without the opportunity to bill is appreciated by the thousands of HATCH and ABRAHAM to achieve the convince an immigration judge that American travelers who benefit from best possible solutions to our immigra- they faced persecution in their native it. tion problems. Immigrants in America lands. To provide just one example, a This legislation will achieve the im- should understand they have a devoted Kosovo Albanian was summarily re- portant goal of making our visa waiver ally in the senior Senator from Massa- moved from the United States after the program permanent. We have had a chusetts, Mr. KENNEDY. And I thank civil war in Kosovo had already made visa waiver pilot project for more than our Democratic Leader TOM DASCHLE S9650 CONGRESSIONAL RECORD — SENATE October 3, 2000 for his commitment to getting this term solution to the workforce needs thank Bruce Cohen and Tim Lynch of matter concluded without additional in my State and the country. The long Senator LEAHY’s committee staff. unnecessary delay. They and their term solution lies with our own chil- Have the yeas and nays been ordered? staffs, along with the staff of our Re- dren and our own workers. Our contin- The PRESIDING OFFICER. They publican counterparts, were instru- ued success in this global economy de- have not. mental in moving this matter to pas- pends on our ability to ensure that Mr. HATCH. I ask for the yeas and sage. education and training for our current nays. I thank all on both sides. and future workforce matches the de- The PRESIDING OFFICER. Is there a The PRESIDING OFFICER. The Sen- mands in our high tech 21st century sufficient second? ator from Utah. There is a sufficient second. global economy. Working with my col- The yeas and nays were ordered. Mr. HATCH. This is a very important leagues, I have included in this bill Mr. LEAHY. Mr. President, I note bill. This is a bill that both sides have strong, effective, and forward looking that each of the component parts of said they wanted for a long time. I provisions directing the several hun- the Latino and Immigrant Fairness have to say it is pitiful that we had to dred million dollars in fees expected to Act were filed long before July 25. go through three cloture votes because be generated by the visas toward the Democratic Senators repeatedly asked it was filibustered three times. Even education and retraining of our chil- for hearings on this proposal, and those the motion to proceed was filibustered dren and our workforce. Those provi- requests were repeatedly denied. by colleagues on the other side. They sions are included in the substitute It is not fair to say that this legisla- have tried to make this into a political which is before us today. tion is neither ‘‘Latino’’ nor ‘‘fair.’’ If brouhaha which it doesn’t deserve. Mr. President there are many to anybody wants to know whether it is Further, when they also brought up a whom I want to express my gratitude something that the Latino community bill that they did not even file until this morning. This legislation had, wants and whether the Latino commu- July 25 of this year, the Latino and Im- from the beginning, an effective group nity thinks it is fair, just ask them. migrant Fairness Act, which is any- of Senators at the forefront. That in- They will tell you the Latino fairness thing but fair. They brought that up cluded Senator ABRAHAM, a leader on bill is supported by the Latino commu- and asked, without hearings, without 1 this issue for many years, as well as nity and it is a fair bill. minute of consultation, that we have a Senator GRAMM from Texas. On the I do thank my chairman, my close rolling amnesty for up to 2 million ille- other side of the aisle, we were joined friend, that we are getting this gal aliens—perhaps even more than early on by Senators GRAHAM, FEIN- through. that; certainly they admit to at least STEIN, and LIEBERMAN, and all have Mr. HATCH. Mr. President, let me 500,000. It shows the length to which continued their commitment to the just take a minute to respond to some politics can go in this body. continued improvement of our bill. And of the comments of my colleague, Sen- I am glad we are at this point. It finally, Mr. President, I want to thank ator LEAHY. The so-called Latino Fair- took continual effort by our leader to Senator KENNEDY for his hard work and ness Act has little to do with fairness push this bill through. There were his tireless dedication to ensuring ef- for immigrants. This is no limited many times when we thought we might fective training provisions in this bill measure to undo a previous wrong to a have to pull it down because of the op- for American workers. I would be re- limited class of immigrants who other- position from the other side. miss were I not to also mention Sen- wise might have been eligible for am- But today, I look forward to an over- ator PAT LEAHY—the committee’s nesty under the 1986 act. In fact, it is a whelming vote this morning on this ranking member. He approached this major new amnesty program with a important, bipartisan bill and hope bill in the spirit of bipartisanship and price tag of almost $1.4 billion. That that by week’s end, the House of Rep- facilitated its consideration both here has major implications for our national resentatives will have acted favorably on the floor and in committee. policy on immigration. and with dispatch as well. Mr. President. I look forward to The bill purports to be about ‘‘immi- One of our greatest priorities, Mr. working with my colleagues in the grant fairness,’’ but it does nothing to President, is and ought to be keeping other body in the coming days to see increase or preserve the categories of our economy vibrant, and expanding that this bill becomes law. legal immigrants allowed in this coun- educational opportunities for Amer- I hope we can get this done for Amer- try annually. It does nothing to short- ica’s children and its workers. That is ican workers and children and for our en the long waiting period or remove my priority for this country and for continued economic expansion. the hurdles for persons who have wait- my own State of Utah. Finally, Mr. President, I want to ed years to legally enter this country. I am proud of the growth and devel- thank all of the dedicated staffers here This so-called Latino fairness is no opment in my own State that has made in the Senate whose talent and hard fairness at all to the millions of immi- Utah one of the leaders of the country work have helped get this bill passed. grants who have and will continue to and the world in our high tech econ- First, I’d like to thank my own com- play by the rules. omy. mittee staff, including Chief Counsel Moreover, the bill does not even fix a In Utah and elsewhere, however, our and Staff Director Manus Cooney, Dep- date for the registry. Rather it allows continued economic growth, and our uty Chief Counsel Sharon Prost, and a rolling amnesty. What kind of signal competitive edge in the world economy Press Secretary Jeanne Lopatto. The does this send? Our government spends requires an adequate supply of highly conventional wisdom in Washington a millions each year to combat illegal skilled high tech workers. This re- few months ago was that this bill was immigrant and deports thousands of mains one of our great challenges in not going to pass. But they kept fight- persons each year. With the rolling am- the 21st century, requiring both short ing for its passage. I want to particu- nesty, however, if an illegal alien can and long term solutions. The legisla- larly commend Sharon Prost for her manage to escape law enforcement for tion we will pass today, S. 2405, ad- tireless efforts. long enough we reward that person dresses both of these challenges. I also want to thank Lee Otis and with citizenship, or at least permanent Specifically, a tight labor market, Stuart Anderson, of the Subcommittee resident status. increasing globalization, and a bur- on Immigration for their invaluable Finally, it should be noted that all of geoning economy have combined to in- technical and legal assistance and Es- these dramatic changes were proposed crease demand for skilled workers well ther Olivarria of Senator KENNEDY’s in July of this year with no hearings beyond what was forecast when Con- staff. My thanks also go to Michael and with no assessment of competing gress last addressed the issue of tem- Simmons, of Senator GRAMM’s staff, costs and benefits. The Senate appro- porary visas for highly skilled workers Caroline Berver, with Senator GRAHAM, priately refused to consider this bill in 1998. Therefore, this legislation once James Thurston, with Senator because its many consequences were again increases the annual cap for this LIEBERMAN, and Lavita Strickland with not addressed by its proponents. year and the next three years. Senator FEINSTEIN. I would also like to We are proud of the fine bipartisan But increasing the number of H–1B thank Jim Hecht of Senator LOTT’s work that went into the H–1B visa bill visas is nothing more than a short staff for his efforts. Finally, I want to and welcome its passage. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9651 The PRESIDING OFFICER (Mr. (b) ADDITIONAL VISAS FOR FISCAL YEARS 1152(a)) is amended by adding at the end the Crapo). Under the previous order, the 1999 AND 2000.— following new paragraph: hour of 10 o’clock having arrived, the (1) IN GENERAL.—(A) Notwithstanding sec- ‘‘(5) RULES FOR EMPLOYMENT-BASED IMMI- Senate will now vote on the passage of tion 214(g)(1)(A)(ii) of the Immigration and GRANTS.— Nationality Act (8 U.S.C. 1184(g)(1)(A)(ii)), ‘‘(A) EMPLOYMENT-BASED IMMIGRANTS NOT S. 2045. The question is, Shall the bill the total number of aliens who may be issued SUBJECT TO PER COUNTRY LIMITATION IF ADDI- pass? The yeas and nays have been or- visas or otherwise provided nonimmigrant TIONAL VISAS AVAILABLE.—If the total num- dered. The clerk will call the roll. status under section 101(a)(15)(H)(i)(b) of ber of visas available under paragraph (1), The bill clerk called the roll. such Act in fiscal year 1999 is increased by a (2), (3), (4), or (5) of section 203(b) for a cal- Mr. REID. I announce that the Sen- number equal to the number of aliens who endar quarter exceeds the number of quali- ator from California (Mrs. FEINSTEIN), are issued such a visa or provided such status fied immigrants who may otherwise be the Senator from Massachusetts (Mr. during the period beginning on the date on issued such visas, the visas made available KENNEDY), and the Senator from Con- which the limitation in such section under that paragraph shall be issued without 214(g)(1)(A)(ii) is reached and ending on Sep- regard to the numerical limitation under necticut (Mr. LIEBERMAN) are nec- tember 30, 1999. paragraph (2) of this subsection during the essarily absent. (B) In the case of any alien on behalf of remainder of the calendar quarter. I further announce that, if present whom a petition for status under section ‘‘(B) LIMITING FALL ACROSS FOR CERTAIN and voting, the Senator from Massa- 101(a)(15)(H)(I)(b) is filed before September 1, COUNTRIES SUBJECT TO SUBSECTION (E).—In the chusetts (Mr. KENNEDY), would vote 2000, and is subsequently approved, that case of a foreign state or dependent area to ‘‘aye.’’ alien shall be counted toward the numerical which subsection (e) applies, if the total The PRESIDING OFFICER. Are there ceiling for fiscal year 2000 notwithstanding number of visas issued under section 203(b) any other Senators in the Chamber the date of the approval of the petition. Not- exceeds the maximum number of visas that who desire to vote? withstanding section 214(g)(1)(A)(iii) of the may be made available to immigrants of the The result was announced—yeas 96, Immigration and Nationality Act, the total state or area under section 203(b) consistent number of aliens who may be issued visas or with subsection (e) (determined without re- nays 1, as follows: otherwise provided nonimmigrant status gard to this paragraph), in applying sub- [Rollcall Vote No. 262 Leg.] under section 101(a)(15)(H)(i)(b) of such Act section (e) all visas shall be deemed to have YEAS—96 in fiscal year 2000 is increased by a number been required for the classes of aliens speci- Abraham Enzi McCain equal to the number of aliens who may be fied in section 203(b).’’. Akaka Feingold McConnell issued visas or otherwise provided non- (b) CONFORMING AMENDMENTS.— Allard Fitzgerald Mikulski immigrant status who filed a petition during (1) Section 202(a)(2) of the Immigration and Ashcroft Frist Miller the period beginning on the date on which Nationality Act (8 U.S.C. 1152(a)(2)) is Baucus Gorton Moynihan the limitation in such section 214(g)(1)(A)(iii) amended by striking ‘‘paragraphs (3) and (4)’’ Bayh Graham Murkowski is reached and ending on August 31, 2000. and inserting ‘‘paragraphs (3), (4), and (5)’’. Bennett Gramm Murray (2) Section 202(e)(3) of the Immigration and Biden Grams Nickles (2) EFFECTIVE DATE.—Paragraph (1) shall Bingaman Grassley Reed take effect as if included in the enactment of Nationality Act (8 U.S.C. 1152(e)(3)) is Bond Gregg Reid section 411 of the American Competitiveness amended by striking ‘‘the proportion of the Boxer Hagel Robb and Workforce Improvement Act of 1998 (as visa numbers’’ and inserting ‘‘except as pro- Breaux Harkin Roberts contained in title IV of division C of the Om- vided in subsection (a)(5), the proportion of Brownback Hatch Rockefeller nibus Consolidated and Emergency Supple- the visa numbers’’. Bryan Helms Roth mental Appropriations Act, 1999; Public Law (c) ONE-TIME PROTECTION UNDER PER COUN- Bunning Hutchinson Santorum TRY CEILING.—Notwithstanding section Burns Hutchison Sarbanes 105–277). SEC. 103. SPECIAL RULE FOR UNIVERSITIES, RE- 214(g)(4) of the Immigration and Nationality Byrd Inhofe Schumer Act (8 U.S.C. 1184(g)(4)), any alien who— Campbell Inouye Sessions SEARCH FACILITIES, AND GRAD- Chafee, L. Jeffords Shelby UATE DEGREE RECIPIENTS; COUNT- (1) is the beneficiary of a petition filed Cleland Johnson Smith (NH) ING RULES. under section 204(a) of that Act for a pref- Cochran Kerrey Smith (OR) Section 214(g) of the Immigration and Na- erence status under paragraph (1), (2), or (3) Collins Kerry Snowe tionality Act (8 U.S.C. 1184(g)) is amended by of section 203(b) of that Act; and Conrad Kohl Specter adding at the end the following new para- (2) is eligible to be granted that status but Craig Kyl Stevens graphs: for application of the per country limita- Crapo Landrieu Thomas ‘‘(5) The numerical limitations contained tions applicable to immigrants under those Daschle Lautenberg Thompson in paragraph (1)(A) shall not apply to any DeWine Leahy Thurmond paragraphs, Dodd Levin Torricelli nonimmigrant alien issued a visa or other- may apply for, and the Attorney General Domenici Lincoln Voinovich wise provided status under section may grant, an extension of such non- Dorgan Lott Warner 101(a)(15)(H)(i)(b) who is employed (or has re- immigrant status until the alien’s applica- Durbin Lugar Wellstone ceived an offer of employment) at— tion for adjustment of status has been proc- Edwards Mack Wyden ‘‘(A) an institution of higher education (as essed and a decision made thereon. NAYS—1 defined in section 101(a) of the Higher Edu- SEC. 105. INCREASED PORTABILITY OF H–1B STA- cation Act of 1965 (20 U.S.C. 1001(a))), or a re- TUS. Hollings lated or affiliated nonprofit entity; or (a) IN GENERAL.—Section 214 of the Immi- NOT VOTING—3 ‘‘(B) a nonprofit research organization or a gration and Nationality Act (8 U.S.C. 1184) is Feinstein Kennedy Lieberman governmental research organization. amended by adding at the end the following ‘‘(6) Any alien who ceases to be employed new subsection: The bill (S. 2045), as amended, was by an employer described in paragraph (5)(A) ‘‘(m)(1) A nonimmigrant alien described in passed, as follows: shall, if employed as a nonimmigrant alien paragraph (2) who was previously issued a S. 2045 described in section 101(a)(15)(H)(i)(b), who visa or otherwise provided nonimmigrant Be it enacted by the Senate and House of Rep- has not previously been counted toward the status under section 101(a)(15)(H)(i)(b) is au- resentatives of the United States of America in numerical limitations contained in para- thorized to accept new employment upon the Congress assembled, graph (1)(A), be counted toward those limita- filing by the prospective employer of a new tions the first time the alien is employed by petition on behalf of such nonimmigrant as TITLE I—AMERICAN COMPETITIVENESS an employer other than one described in provided under subsection (a). Employment IN THE TWENTY-FIRST CENTURY paragraph (5). authorization shall continue for such alien SEC. 101. SHORT TITLE. ‘‘(7) Any alien who has already been count- until the new petition is adjudicated. If the This title may be cited as the ‘‘American ed, within the 6 years prior to the approval new petition is denied, such authorization Competitiveness in the Twenty-first Century of a petition described in subsection (c), to- shall cease. Act of 2000’’. ward the numerical limitations of paragraph ‘‘(2) A nonimmigrant alien described in SEC. 102. TEMPORARY INCREASE IN VISA ALLOT- (1)(A) shall not again be counted toward this paragraph is a nonimmigrant alien— MENTS. those limitations unless the alien would be ‘‘(A) who has been lawfully admitted into (a) FISCAL YEARS 2001–2003.—Section eligible for a full 6 years of authorized ad- the United States; 214(g)(1)(A) of the Immigration and Nation- mission at the time the petition is filed. ‘‘(B) on whose behalf an employer has filed ality Act (8 U.S.C. 1184(g)(1)(A)) is amended— Where multiple petitions are approved for 1 a nonfrivolous petition for new employment (1) by redesignating clause (v) as clause alien, that alien shall be counted only before the date of expiration of the period of (vii); and once.’’. stay authorized by the Attorney General; (2) by striking clause (iv) and inserting the SEC. 104. LIMITATION ON PER COUNTRY CEILING and following: WITH RESPECT TO EMPLOYMENT- ‘‘(C) who, subsequent to such lawful admis- ‘‘(iv) 195,000 in fiscal year 2001; BASED IMMIGRANTS. sion, has not been employed without author- ‘‘(v) 195,000 in fiscal year 2002; (a) SPECIAL RULES.—Section 202(a) of the ization in the United States before the filing ‘‘(vi) 195,000 in fiscal year 2003; and’’. Immigration and Nationality Act (8 U.S.C. of such petition.’’. S9652 CONGRESSIONAL RECORD — SENATE October 3, 2000

(b) EFFECTIVE DATE.—The amendment fiscal year after fiscal year 2001, by the cu- out a direct or matching grant program to made by subsection (a) shall apply to peti- mulative number of immigrant visas actu- support private-public partnerships in K–12 tions filed before, on, or after the date of en- ally used under paragraph (1) for previous education. actment of this Act. fiscal years. ‘‘(B) TYPES OF PROGRAMS COVERED.—The SEC. 106. SPECIAL PROVISIONS IN CASES OF (C) CONSTRUCTION.—Nothing in this para- Director shall award grants to such pro- LENGTHY ADJUDICATIONS. graph shall be construed as affecting the ap- grams, including those which support the de- (a) EXEMPTION FROM LIMITATION.—The lim- plication of section 201(c)(3)(C) of the Immi- velopment and implementation of standards- itation contained in section 214(g)(4) of the gration and Nationality Act (8 U.S.C. based instructional materials models and re- Immigration and Nationality Act (8 U.S.C. 1151(c)(3)(C)). lated student assessments that enable K–12 1184(g)(4)) with respect to the duration of au- (3) EMPLOYMENT-BASED VISAS DEFINED.—For students to acquire an understanding of thorized stay shall not apply to any non- purposes of this subsection, the term ‘‘em- science, mathematics, and technology, as immigrant alien previously issued a visa or ployment-based visa’’ means an immigrant well as to develop critical thinking skills; otherwise provided nonimmigrant status visa which is issued pursuant to the numer- provide systemic improvement in training under section 101(a)(15)(H)(i)(b) of that Act ical limitation under section 203(b) of the K–12 teachers and education for students in on whose behalf a petition under section Immigration and Nationality Act (8 U.S.C. science, mathematics, and technology; sup- 204(b) of that Act to accord the alien immi- 1153(b)). port the professional development of K–12 grant status under section 203(b) of that Act, math and science teachers in the use of tech- or an application for adjustment of status SEC. 107. EXTENSION OF CERTAIN REQUIRE- MENTS AND AUTHORITIES nology in the classroom; stimulate system- under section 245 of that Act to accord the THROUGH FISCAL YEAR 2002. wide K–12 reform of science, mathematics, alien status under such section 203(b), has (a) ATTESTATION REQUIREMENTS.—Section and technology in rural, economically dis- been filed, if 365 days or more have elapsed 212(n)(1)(E)(ii)) of the Immigration and Na- advantaged regions of the United States; since— tionality Act (8 U.S.C. 1182(n)(1)(E)(ii)) is provide externships and other opportunities (1) the filing of a labor certification appli- amended by striking ‘‘October 1, 2001’’ and cation on the alien’s behalf (if such certifi- for students to increase their appreciation inserting ‘‘October 1, 2003’’. cation is required for the alien to obtain sta- and understanding of science, mathematics, (b) DEPARTMENT OF LABOR INVESTIGATIVE tus under such section 203(b)); or engineering, and technology (including sum- AUTHORITIES.—Section 413(e)(2) of the Amer- (2) the filing of the petition under such sec- mer institutes sponsored by an institution of tion 204(b). ican Competitiveness and Workforce Im- higher education for students in grades 7–12 (b) EXTENSION OF H1–B WORKER STATUS.— provement Act of 1998 (as contained in title that provide instruction in such fields); in- The Attorney General shall extend the stay IV of division C of Public Law 105–277) is volve partnerships of industry, educational of an alien who qualifies for an exemption amended by striking ‘‘September 30, 2001’’ institutions, and community organizations under subsection (a) in one-year increments and inserting ‘‘September 30, 2003’’. to address the educational needs of disadvan- until such time as a final decision is made on SEC. 108. RECOVERY OF VISAS USED FRAUDU- taged communities; provide college pre- the alien’s lawful permanent residence. LENTLY. paratory support to expose and prepare stu- (c) INCREASED JOB FLEXIBILITY FOR LONG Section 214(g)(3) of the Immigration and dents for careers in science, mathematics, DELAYED APPLICANTS FOR ADJUSTMENT OF Nationality Act (8 U.S.C. 1184 (g)(3)) is engineering, and technology; and provide for STATUS.— amended to read as follows: carrying out systemic reform activities (1) Section 204 of the Immigration and Na- ‘‘(3) Aliens who are subject to the numer- under section 3(a)(1) of the National Science tionality Act (8 U.S.C. 1154) is amended by ical limitations of paragraph (1) shall be Foundation Act of 1950 (42 U.S.C. adding at the end the following new sub- issued visas (or otherwise provided non- 1862(a)(1)).’’; section: immigrant status) in the order in which peti- (4) in paragraph (6), by striking ‘‘6 per- ‘‘(j) JOB FLEXIBILITY FOR LONG DELAYED tions are filed for such visas or status. If an cent’’ and inserting ‘‘5 percent’’; and APPLICANTS FOR ADJUSTMENT OF STATUS TO alien who was issued a visa or otherwise pro- (5) in paragraph (6), by striking ‘‘3 per- PERMANENT RESIDENCE.—A petition under vided nonimmigrant status and counted cent’’ each place it appears and inserting subsection (a)(1)(D) for an individual whose against the numerical limitations of para- ‘‘2.5 percent’’. application for adjustment of status pursu- graph (1) is found to have been issued such (b) LOW-INCOME SCHOLARSHIP PROGRAM.— ant to section 245 has been filed and re- visa or otherwise provided such status by Section 414(d)(3) of the American Competi- mained unadjudicated for 180 days or more fraud or willfully misrepresenting a material tiveness and Workforce Improvement Act of shall remain valid with respect to a new job fact and such visa or nonimmigrant status is 1998 (as contained in title IV of division C of if the individual changes jobs or employers if revoked, then one number shall be restored Public Law 105–277) is amended by striking the new job is in the same or a similar occu- to the total number of aliens who may be ‘‘$2,500 per year.’’ and inserting ‘‘$3,125 per pational classification as the job for which issued visas or otherwise provided such sta- year. The Director may renew scholarships the petition was filed.’’. tus under the numerical limitations of para- for up to 4 years.’’. (2) Section 212(a)(5)(A) of the Immigration graph (1) in the fiscal year in which the peti- (c) REPORTING REQUIREMENT.—Section 414 and Nationality Act (8 U.S.C. 1182(a)(5)(A)) is tion is revoked, regardless of the fiscal year of the American Competitiveness and Work- amended by adding at the end the following in which the petition was approved.’’. force Improvement Act of 1998 (as contained new clause: in title IV of division C of Public Law 105– ‘‘(iv) LONG DELAYED ADJUSTMENT APPLI- SEC. 109. NSF STUDY AND REPORT ON THE ‘‘DIG- 277) is amended by adding at the end the fol- ITAL DIVIDE’’. CANTS.—A certification made under clause (i) lowing new subsection: (a) STUDY.—The National Science Founda- with respect to an individual whose petition ‘‘(e) REPORTING REQUIREMENT.—The Sec- is covered by section 204(j) shall remain valid tion shall conduct a study of the divergence retary of Labor and the Director of the Na- with respect to a new job accepted by the in- in access to high technology (commonly re- tional Science Foundation shall— dividual after the individual changes jobs or ferred to as the ‘‘digital divide’’) in the ‘‘(1) track and monitor the performance of employers if the new job is in the same or a United States. programs receiving H–1B Nonimmigrant Fee similar occupational classification as the job (b) REPORT.—Not later than 18 months grant money; and for which the certification was issued.’’. after the date of enactment of this Act, the ‘‘(2) not later than one year after the date (d) RECAPTURE OF UNUSED EMPLOYMENT- Director of the National Science Foundation of enactment of this subsection, submit a re- BASED IMMIGRANT VISAS.— shall submit a report to Congress setting port to the Committees on the Judiciary of (1) IN GENERAL.—Notwithstanding any forth the findings of the study conducted the House of Representatives and the other provision of law, the number of em- under subsection (a). Senate— ployment-based visas (as defined in para- SEC. 110. MODIFICATION OF NONIMMIGRANT PE- ‘‘(A) the tracking system to monitor the graph (3)) made available for a fiscal year TITIONER ACCOUNT PROVISIONS. performance of programs receiving H–1B (beginning with fiscal year 2001) shall be in- (a) ALLOCATION OF FUNDS.—Section 286(s) grant funding; and creased by the number described in para- of the Immigration and Nationality Act (8 ‘‘(B) the number of individuals who have graph (2). Visas made available under this U.S.C. 1356(s)) is amended— completed training and have entered the subsection shall only be available in a fiscal (1) in paragraph (2), by striking ‘‘56.3 per- high-skill workforce through these pro- year to employment-based immigrants under cent’’ and inserting ‘‘55 percent’’; grams.’’. paragraph (1), (2), or (3) of section 203(b) of (2) in paragraph (3), by striking ‘‘28.2 per- SEC. 111. DEMONSTRATION PROGRAMS AND the Immigration and Nationality Act. cent’’ and inserting ‘‘23.5 percent’’; PROJECTS TO PROVIDE TECHNICAL (2) NUMBER AVAILABLE.— (3) by amending paragraph (4) to read as SKILLS TRAINING FOR WORKERS. (A) IN GENERAL.—Subject to subparagraph follows: Section 414(c) of the American Competi- (B), the number described in this paragraph ‘‘(4) NATIONAL SCIENCE FOUNDATION COM- tiveness and Workforce Improvement Act of is the difference between the number of em- PETITIVE GRANT PROGRAM FOR K–12 MATH, 1998 (as contained in title IV of division C of ployment-based visas that were made avail- SCIENCE AND TECHNOLOGY EDUCATION.— Public Law 105–277; 112 Stat. 2681–653) is able in fiscal year 1999 and 2000 and the num- ‘‘(A) IN GENERAL.—15 percent of the amended to read as follows: ber of such visas that were actually used in amounts deposited into the H–1B Non- ‘‘(c) DEMONSTRATION PROGRAMS AND such fiscal years. immigrant Petitioner Account shall remain PROJECTS TO PROVIDE TECHNICAL SKILLS (B) REDUCTION.—The number described in available to the Director of the National TRAINING FOR WORKERS.— subparagraph (A) shall be reduced, for each Science Foundation until expended to carry ‘‘(1) IN GENERAL.— October 3, 2000 CONGRESSIONAL RECORD — SENATE S9653

‘‘(A) FUNDING.—The Secretary of Labor ‘‘(D) ALLOCATION OF GRANTS.—In making shall be from the business or businesses or shall use funds available under section grants under this paragraph, the Secretary business-related nonprofit organizations in- 286(s)(2) of the Immigration and Nationality shall make every effort to fairly distribute volved. Consideration in the award of grants Act (8 U.S.C. 1356(s)(2)) to establish dem- grants across rural and urban areas, and shall be given to applicants that provide a onstration programs or projects to provide across the different geographic regions of the specific commitment or commitments of re- technical skills training for workers, includ- United States. The total amount of grants sources from other public or private sources, ing both employed and unemployed workers. awarded to carry out programs and projects or both, so as to demonstrate the long-term ‘‘(B) TRAINING PROVIDED.—Training funded described in paragraph (1)(A) shall be allo- sustainability of the training program or by a program or project described in sub- cated as follows: project after the grant expires. paragraph (A) shall be for persons who are ‘‘(i) At least 80 percent of the grants shall ‘‘(6) ADMINISTRATIVE COSTS.—An entity currently employed and who wish to obtain be awarded to programs and projects that that receives a grant to carry out a program and upgrade skills as well as for persons who train employed and unemployed workers in or project described in paragraph (1)(A) may are unemployed. Such training is not limited skills in high technology, information tech- not use more than 10 percent of the amount to skill levels commensurate with a four- nology, and biotechnology, including skills of the grant to pay for administrative costs year undergraduate degree, but should in- needed for software and communications associated with the program or project.’’. clude the preparation of workers for a broad services, telecommunications, systems in- range of positions along a career ladder. Con- stallation and integration, computers and SEC. 112. KIDS 2000 CRIME PREVENTION AND sideration shall be given to the use of grant communications hardware, advanced manu- COMPUTER EDUCATION INITIATIVE. funds to demonstrate a significant ability to facturing, health care technology, bio- (a) SHORT TITLE.—This section may be expand a training program or project technology and biomedical research and cited as the ‘‘Kids 2000 Act’’. through such means as training more work- manufacturing, and innovation services. (b) FINDINGS.—Congress makes the fol- ers or offering more courses, and training ‘‘(ii) No more than 20 percent of the grants lowing findings: programs or projects resulting from collabo- shall be available to programs and projects (1) There is an increasing epidemic of juve- rations, especially with more than one small that train employed and unemployed work- nile crime throughout the United States. business or with a labor-management train- ers for skills related to any single specialty (2) It is well documented that the majority ing program or project. The need for the occupation, as defined in section 214(i) of the of juvenile crimes take place during after- training shall be justified through reliable Immigration and Nationality Act. school hours. regional, State, or local data. ‘‘(3) START-UP FUNDS.— (3) Knowledge of technology is becoming ‘‘(2) GRANTS.— ‘‘(A) IN GENERAL.—Except as provided in increasingly necessary for children in school ‘‘(A) ELIGIBILITY.—To carry out the pro- subparagraph (B), not more than 5 percent of and out of school. grams and projects described in paragraph any single grant, or not to exceed $75,000, (4) The Boys and Girls Clubs of America (1)(A), the Secretary of Labor shall, in con- whichever is less, may be used toward the have 2,700 clubs throughout all 50 States, sultation with the Secretary of Commerce, start-up costs of partnerships or new train- serving over 3,000,000 boys and girls pri- subject to the availability of funds in the H– ing programs and projects. marily from at-risk communities. 1B Nonimmigrant Petitioner Account, ‘‘(B) EXCEPTION.—In the case of partner- (5) The Boys and Girls Clubs of America award— ships consisting primarily of small busi- have the physical structures in place for im- ‘‘(i) 75 percent of the grants to a local nesses, not more than 10 percent of any sin- mediate implementation of an after-school workforce investment board established gle grant, or $150,000, whichever is less, may technology program. under section 116(b) or section 117 of the be used toward the start-up costs of partner- (6) Building technology centers and pro- Workforce Investment Act of 1998 (29 U.S.C. ships or new training programs and projects. viding integrated content and full-time staff- 2832) or consortia of such boards in a region. ‘‘(C) DURATION OF START-UP PERIOD.—For ing at those centers in the Boys and Girls Each workforce investment board or con- purposes of this subsection, a start-up period Clubs of America nationwide will help foster sortia of boards receiving grant funds shall consists of a period of not more than 2 education, job training, and an alternative represent a local or regional public-private months after the grant period begins, at to crime for at-risk youth. partnership consisting of at least— which time training shall immediately begin (7) Partnerships between the public sector ‘‘(I) one workforce investment board; and no further Federal funds may be used for and the private sector are an effective way of ‘‘(II) one community-based organization or start-up purposes. providing after-school technology programs higher education institution or labor union; ‘‘(4) TRAINING OUTCOMES.— in the Boys and Girls Clubs of America. and ‘‘(A) CONSIDERATION FOR CERTAIN PROGRAMS (8) PowerUp: Bridging the Digital Divide is ‘‘(III) one business or business-related non- AND PROJECTS.—Consideration in the award- profit organization such as a trade associa- ing of grants shall be given to applicants an entity comprised of more than a dozen tion: Provided, That the activities of such that provide a specific, measurable commit- nonprofit organizations, major corporations, local or regional public-private partnership ment upon successful completion of a train- and Federal agencies that have joined to- described in this subsection shall be con- ing course, to— gether to launch a major new initiative to ducted in coordination with the activities of ‘‘(i) hire or effectuate the hiring of unem- help ensure that America’s underserved the relevant local workforce investment ployed trainees (where applicable); young people acquire the skills, experiences, board or boards established under the Work- ‘‘(ii) increase the wages or salary of incum- and resources they need to succeed in the force Investment Act of 1998 (29 U.S.C. 2832); bent workers (where applicable); and digital age. and ‘‘(iii) provide skill certifications to train- (9) Bringing PowerUp into the Boys and ‘‘(ii) 25 percent of the grants under the Sec- ees or link the training to industry-accepted Girls Clubs of America will be an effective retary of Labor’s authority to award grants occupational skill standards, certificates, or way to ensure that our youth have a safe, for demonstration projects or programs licensing requirements. crime-free environment in which to learn the under section 171 of the Workforce Invest- ‘‘(B) REQUIREMENTS FOR GRANT APPLICA- technological skills they need to close the ment Act (29 U.S.C. 2916) to partnerships TIONS.—Applications for grants shall— divide between young people who have access that shall consist of at least 2 businesses or ‘‘(i) articulate the level of skills that work- to computer-based information and tech- a business-related nonprofit organization ers will be trained for and the manner by nology-related skills and those who do not. that represents more than one business, and which attainment of those skills will be (c) AFTER-SCHOOL TECHNOLOGY GRANTS TO that may include any educational, labor, measured; THE BOYS AND GIRLS CLUBS OF AMERICA.— community organization, or workforce in- ‘‘(ii) include an agreement that the pro- (1) PURPOSES.—The Attorney General shall vestment board, except that such grant gram or project shall be subject to evalua- make grants to the Boys and Girls Clubs of funds may be used only to carry out a strat- tion by the Secretary of Labor to measure America for the purpose of funding effective egy that would otherwise not be eligible for its effectiveness; and after-school technology programs, such as funds provided under clause (i), due to bar- ‘‘(iii) in the case of an application for a PowerUp, in order to provide— riers in meeting those partnership eligibility grant under subsection (c)(2)(A)(ii), explain (A) constructive technology-focused activi- criteria, on a national, multistate, regional, what barriers prevent the strategy from ties that are part of a comprehensive pro- or rural area (such as rural telework pro- being implemented through a grant made gram to provide access to technology and grams) basis. under subsection (c)(2)(A)(i). technology training to youth during after- ‘‘(B) DESIGNATION OF RESPONSIBLE FISCAL ‘‘(5) MATCHING FUNDS.—Each application school hours, weekends, and school vaca- AGENTS.—Each partnership formed under for a grant to carry out a program or project tions; subparagraph (A) shall designate a respon- described in paragraph (1)(A) shall state the (B) supervised activities in safe environ- sible fiscal agent to receive and disburse manner by which the partnership will pro- ments for youth; and grant funds under this subsection. vide non-Federal matching resources (cash, (C) full-time staffing with teachers, tutors, ‘‘(C) PARTNERSHIP CONSIDERATIONS.—Con- or in-kind contributions, or both) equal to at and other qualified personnel. sideration in the awarding of grants shall be least 50 percent of the total grant amount (2) SUBAWARDS.—The Boys and Girls Clubs given to any partnership that involves and awarded under paragraph (2)(A)(i), and at of America shall make subawards to local directly benefits more than one small busi- least 100 percent of the total grant amount boys and girls clubs authorizing expenditures ness (each consisting of 100 employees or awarded under paragraph (2)(A)(ii). At least associated with providing technology pro- less). one-half of the non-Federal matching funds grams such as PowerUp, including the hiring S9654 CONGRESSIONAL RECORD — SENATE October 3, 2000 of teachers and other personnel, procure- SEC. 114. EXCLUSION OF CERTAIN ‘‘J’’ NON- (2) make such other improvements in the ment of goods and services, including com- IMMIGRANTS FROM NUMERICAL processing of immigration benefit applica- puter equipment, or such other purposes as LIMITATIONS APPLICABLE TO ‘‘H-1B’’ tions as may be necessary to ensure that a are approved by the Attorney General. NONIMMMIGRANTS. backlog does not develop after such date; and The numerical limitations contained in (3) make such improvements in infrastruc- (d) APPLICATIONS.— section 102 of this title shall not apply to ture as may be necessary to effectively pro- (1) ELIGIBILITY.—In order to be eligible to any nonimmigrant alien granted a waiver vide immigration services. receive a grant under this section, an appli- that is subject to the limitation contained in (b) AUTHORIZATION OF APPROPRIATIONS.— cant for a subaward (specified in subsection paragraph (1)(B) of the first section 214(l) of (1) IN GENERAL.—There is authorized to be (c)(2)) shall submit an application to the the Immigration and Nationality Act (relat- appropriated to the Department of Justice Boys and Girls Clubs of America, in such ing to restrictions on waivers). from time to time such sums as may be nec- form and containing such information as the SEC. 115. STUDY AND REPORT ON THE ‘‘DIGITAL Attorney General may reasonably require. essary for the Attorney General to carry out DIVIDE’’. subsection (a). (2) APPLICATION REQUIREMENTS.—Each ap- (a) STUDY.—The Secretary of Commerce plication submitted in accordance with para- (2) DESIGNATION OF ACCOUNT IN TREASURY.— shall conduct a review of existing public and Amounts appropriated pursuant to para- graph (1) shall include— private high-tech workforce training pro- (A) a request for a subgrant to be used for graph (1) may be referred to as the ‘‘Immi- grams in the United States. gration Services and Infrastructure Improve- the purposes of this section; (b) REPORT.—Not later than 18 months ments Account’’. (B) a description of the communities to be after the date of enactment of this Act, the (3) AVAILABILITY OF FUNDS.—Amounts ap- served by the grant, including the nature of Secretary of Commerce shall submit a report propriated pursuant to paragraph (1) are au- juvenile crime, violence, and drug use in the to Congress setting forth the findings of the thorized to remain available until expended. communities; study conducted under subsection (a). (4) LIMITATION ON EXPENDITURES.—None of (C) written assurances that Federal funds SEC. 116. SEVERABILITY. received under this section will be used to the funds appropriated pursuant to para- If any provision of this title (or any graph (1) may be expended until the report supplement and not supplant, non-Federal amendment made by this title) or the appli- funds that would otherwise be available for described in section 205(a) has been sub- cation thereof to any person or circumstance mitted to Congress. activities funded under this section; is held invalid, the remainder of the title (D) written assurances that all activities (and the amendments made by this title) and SEC. 205. REPORTS TO CONGRESS. funded under this section will be supervised the application of such provision to any (a) BACKLOG ELIMINATION PLAN.— by qualified adults; other person or circumstance shall not be af- (1) REPORT REQUIRED.—Not later than 90 (E) a plan for assuring that program activi- fected thereby. This section be enacted 2 days after the date of enactment of this Act, ties will take place in a secure environment days after effective date. the Attorney General shall submit a report that is free of crime and drugs; to the Committees on the Judiciary and Ap- TITLE II—IMMIGRATION SERVICES AND (F) a plan outlining the utilization of con- propriations of the Senate and the House of INFRASTRUCTURE IMPROVEMENTS tent-based programs such as PowerUp, and Representatives concerning— the provision of trained adult personnel to SEC. 201. SHORT TITLE. (A) the backlogs in immigration benefit supervise the after-school technology train- This title may be cited as the ‘‘Immigra- applications in existence as of the date of en- ing; and tion Services and Infrastructure Improve- actment of this title; and (G) any additional statistical or financial ments Act of 2000’’. (B) the Attorney General’s plan for elimi- information that the Boys and Girls Clubs of SEC. 202. PURPOSES. nating such backlogs. America may reasonably require. (a) PURPOSES.—The purposes of this title (2) REPORT ELEMENTS.—The report shall are to— include— (e) GRANT AWARDS.—In awarding subgrants (1) provide the Immigration and Natu- (A) an assessment of the data systems used under this section, the Boys and Girls Clubs ralization Service with the mechanisms it in adjudicating and reporting on the status of America shall consider— needs to eliminate the current backlog in of immigration benefit applications, (1) the ability of the applicant to provide the processing of immigration benefit appli- including— the intended services; cations within 1 year after enactment of this (i) a description of the adequacy of existing (2) the history and establishment of the ap- Act and to maintain the elimination of the computer hardware, computer software, and plicant in providing youth activities; and backlog in future years; and other mechanisms to comply with the adju- (3) the extent to which services will be pro- (2) provide for regular congressional over- dications and reporting requirements of this vided in crime-prone areas and techno- sight of the performance of the Immigration title; and logically underserved populations, and ef- and Naturalization Service in eliminating (ii) a plan for implementing improvements forts to achieve an equitable geographic dis- the backlog and processing delays in immi- to existing data systems to accomplish the tribution of the grant awards. gration benefits adjudications. purpose of this title, as described in section (f) AUTHORIZATION OF APPROPRIATIONS.— (b) POLICY.—It is the sense of Congress 202(a); (1) IN GENERAL.—There is authorized to be that the processing of an immigration ben- (B) a description of the quality controls to appropriated $20,000,000 for each of the fiscal efit application should be completed not be put into force to ensure timely, fair, accu- years 2001 through 2006 to carry out this sec- later than 180 days after the initial filing of rate, and complete processing and adjudica- tion. the application, except that a petition for a tion of such applications; (2) SOURCE OF FUNDS.—Funds to carry out nonimmigrant visa under section 214(c) of (C) the elements specified in subsection this section may be derived from the Violent the Immigration and Nationality Act should (b)(2); Crime Reduction Trust Fund. be processed not later than 30 days after the (D) an estimate of the amount of appro- (3) CONTINUED AVAILABILITY.—Amounts filing of the petition. priated funds that would be necessary in made available under this subsection shall SEC. 203. DEFINITIONS. order to eliminate the backlogs in each cat- remain available until expended. In this title: egory of immigration benefit applications (1) BACKLOG.—The term ‘‘backlog’’ means, described in subsection (b)(2); and SEC. 113. USE OF FEES FOR DUTIES RELATING TO (E) a detailed plan on how the Attorney PETITIONS. with respect to an immigration benefit ap- plication, the period of time in excess of 180 General will use any funds in the Immigra- (a) Section 286(s)(5) of the Immigration and days that such application has been pending tion Services and Infrastructure Improve- Nationality Act (8 U.S.C. 1356(s)(5)) is amend- before the Immigration and Naturalization ments Account to comply with the purposes ed to read as follows: ‘‘4 percent of the Service. of this title. amounts deposited into the H–1B Non- (2) IMMIGRATION BENEFIT APPLICATION.—The (b) ANNUAL REPORTS.— immigrant Petitioner Account shall remain term ‘‘immigration benefit application’’ (1) IN GENERAL.—Beginning 90 days after available to the Attorney General until ex- means any application or petition to confer, the end of the first fiscal year for which any pended to carry out duties under paragraphs certify, change, adjust, or extend any status appropriation authorized by section 204(b) is (1) and (9) of section 214(c) related to peti- granted under the Immigration and Nation- made, and 90 days after the end of each fiscal tions made for nonimmigrants described in ality Act. year thereafter, the Attorney General shall section 101(a)(15)(H)(i)(b), under paragraph SEC. 204. IMMIGRATION SERVICES AND INFRA- submit a report to the Committees on the (1) (C) or (D) of section 204 related to peti- STRUCTURE IMPROVEMENT AC- Judiciary and Appropriations of the Senate tions for immigrants described in section COUNT. and the House of Representatives concerning 203(b).’’. (a) AUTHORITY OF THE ATTORNEY GEN- the status of— ERAL.—The Attorney General shall take such (A) the Immigration Services and Infra- (b) Notwithstanding any other provision of measures as may be necessary to— structure Improvements Account including this Act, the figure on page 14, line 16 is (1) reduce the backlog in the processing of any unobligated balances of appropriations deemed to be ‘‘22 percent’’; the figure on immigration benefit applications, with the in the Account; and page 16, line 14 is deemed to be ‘‘4 percent’’; objective of the total elimination of the (B) the Attorney General’s efforts to elimi- and the figure on page 16, line 16 is deemed backlog not later than one year after the nate backlogs in any immigration benefit to be ‘‘2 percent’’. date of enactment of this Act; application described in paragraph (2). October 3, 2000 CONGRESSIONAL RECORD — SENATE S9655 (2) REPORT ELEMENTS.—The report shall I would also like to thank the Major- money dedicated to providing meaning- include— ity Leader for his efforts. While we ful educational scholarships for stu- (A) State-by-State data on— have disagreements about how the dents, particularly minority students, (i) the number of naturalization cases adju- process, here in the Senate, should who are enrolled in a mathematics, en- dicated in each quarter of each fiscal year; (ii) the average processing time for natu- work, on this bill, we have shared a gineering or computer science degree ralization applications; commitment that the Senate must act program and for improving science, (iii) the number of naturalization applica- to ensure the stability of the H–1B pro- mathematics and technology education tions pending for up to 6 months, 12 months, gram in the years to come. in the K–12 system. 18 months, 24 months, 36 months, and 48 Mr. President, as you know, this leg- There are millions of Americans who months or more; islation responds to the pressing need yearn for the opportunity to partici- (iv) estimated processing times adjudi- many American companies are facing pate in our new economy and all its re- cating newly submitted naturalization appli- for highly-skilled workers. The bill in- wards. And they need only one thing to cations; creases the annual ceiling for the ad- (v) an analysis of the appropriate proc- do just that—skills training and edu- essing times for naturalization applications; mission of H–1B non-immigrants to cation. and 195,000 for fiscal years 2001, 2002 and It is our duty to help these Ameri- (vi) the additional resources and process 2003. It also includes an important pro- cans realize their dreams. This bill is changes needed to eliminate the backlog for vision to exempt H–1B visa applicants an important down-payment in that ef- naturalization adjudications; employed by higher education institu- fort. Thus, I look forward to this bill (B) the status of applications or, where ap- tions and other non-profits from the becoming law in the near future. Both plicable, petitions described in subparagraph yearly numerical limits. U.S. workers and U.S. companies stand (C), by Immigration and Naturalization This visa increase could not come at to benefit. Service district, including— (i) the number of cases adjudicated in each a more important time. With unem- (At the request of Mr. DASCHLE, the quarter of each fiscal year; ployment rates currently at or near following statement was ordered to be (ii) the average processing time for such historic lows, the H–1B program has be- printed in the RECORD) applications or petitions; come an increasingly important source ∑ Mrs. FEINSTEIN. Mr. President, as a (iii) the number of applications or peti- of skilled labor for U.S. employers. cosponsor of S. 2045, ‘‘American Com- tions pending for up to 6 months, 12 months, U.S. employers are expected to need petitiveness in the Twenty-first Cen- 18 months, 24 months, 36 months, and 48 roughly 1.6 million information tech- tury Act of 2000,’’ I am pleased to see months or more; nology workers in the next year. Un- this important legislation pass the (iv) the estimated processing times adjudi- Senate today. cating newly submitted applications or peti- fortunately, the demand far exceeds tions; the supply of qualified individuals. One of my most sobering experiences (v) an analysis of the appropriate proc- This shortage not only threatens the as a U.S. Senator occurred a few years essing times for applications or petitions; competitiveness of U.S. high tech- ago when several CEOs of California’s and nology companies but it also threatens leading high-tech companies told me (vi) a description of the additional re- our economy, which owes much of its our schools were not producing enough sources and process changes needed to elimi- success to the technology sector. skilled graduates and asked me to sup- nate the backlog for such processing and ad- These labor shortfalls are not just port an increase in the number of H–1B judications; and felt in Silicon Valley, Northern Vir- temporary visas for skilled foreign (C) a status report on— (i) applications for adjustments of status ginia and other high tech clusters— workers. to that of an alien lawfully admitted for per- they are felt nationwide. In fact, 35 Initially, I did not believe this. But manent residence; percent of the unfilled jobs in the infor- subsequently the problem became very (ii) petitions for nonimmigrant visas under mation technology sector are in the clear at a Senate Judiciary Committee section 214 of the Immigration and Nation- Midwest. In a study done by the Bureau hearing on the subject. California’s ality Act; of Labor Statistics, the state of South high-tech sector has fueled our record (iii) petitions filed under section 204 of Dakota had the greatest high-tech- economic expansion, providing more such Act to classify aliens as immediate rel- nology employment growth in the than 784,000 high-tech jobs in our state atives or preference immigrants under sec- alone. But that continued growth is tion 203 of such Act; early 1990’s—a whopping 172 percent in- (iv) applications for asylum under section crease. And South Dakota companies, threatened if California cannot produce 208 of such Act; like those in other states, are strug- an adequate number of well-educated (v) registrations for Temporary Protected gling to find the workers they need to workers. Clearly our education system Status under section 244 of such Act; and continue to grow. needs major reform. (vi) a description of the additional re- That said, the H–1B visa program is I asked TechNet, a network of the sources and process changes needed to elimi- only a short-term solution to the skills nation’s leading high-tech CEOs, to nate the backlog for such processing and ad- shortage being experienced by Amer- help me develop a program to reduce judications. ican companies. Accordingly, I am our reliance on H–1B workers. The dis- (3) ABSENCE OF APPROPRIATED FUNDS.—In the event that no funds are appropriated sub- proud of the work that was done, large- cussions led to a public-private plan, ject to section 204(b) in the fiscal year in ly at the behest of Democratic Sen- which Senator SPENCER ABRAHAM, R– which this Act is enacted, the Attorney Gen- ators, to ensure that this bill begins to Mich., and I offered as an amendment eral shall submit a report to Congress not address our long-term challenge—en- to the H–1B visa bill. It was approved later than 90 days after the end of such fiscal suring that in the future there are by the Judiciary Committee in March. year, and each fiscal year thereafter, con- enough Americans with the necessary From the funds collected for H–1B taining the elements described in paragraph skills to fill these jobs. Indeed, as Sen- fees over the next three years, the (2). ator MIKULSKI reminded us during this amendment would allocate 15 percent Mr. HATCH. Mr. President, I move to debate, America is facing a skills of the H–1B fees, or roughly $23 million reconsider the vote, and I move to lay shortage, rather than a worker short- for National Science Foundation kin- that motion on the table. age. It is our job to reverse that trend. dergarten through 12th grade math and The motion to lay on the table was This bill is a step in the right direc- science education and skills-develop- agreed to. tion. It dedicates over half of the H–1B ment programs. The technology indus- Mr. DASCHLE. Mr. President, I rise fees collected to the worker training try will match these funds and then to congratulate all those who have primarily in the fields of high tech- some. This is an incredible commit- worked so hard for so long on the H–1B nology, information technology and ment by the industry to help develop a bill. Senators LEAHY, HATCH, KENNEDY, biotechnology skills. By increasing the pipeline of American students who are ABRAHAM, FEINSTEIN, LIEBERMAN and H–1B visa fee modestly, this bill will better prepared for the workplace of to- BIDEN have all done an admirable job triple the money going to these impor- morrow. at putting together a good bipartisan tant training programs enabling 45,000 Additionally, $35 million will be des- bill that will strengthen our economy workers a year to take advantage of ignated for post-secondary school and increase the resources that go to these new training opportunities. In scholarships for 16,000 to 18,000 low-in- technology education and training. addition, the bill also triples the come students to obtain degrees in S9656 CONGRESSIONAL RECORD — SENATE October 3, 2000 science, math or other technology-re- which I introduced earlier this year. As tion and accountability, and would en- lated disciplines so that they can com- we seek to address the needs of the able millions of law-abiding residents, pete for the cutting-edge jobs in the high tech industry by increasing the immigrants, and businesses, who have high-tech sector. At the same time, our number of H–1B visas, I am pleased paid substantial fees to the INS, to amendment provides 23.5 percent, or that we are also taking an active role have their applications processed in a more than $35 million per year in fund- in addressing the unacceptably long timely manner. I believe enactment of ing—in addition to that already being backlogs in processing other immigra- these provisions as part of the H–1B provided—for scholarships so that tion applications. legislation will send a strong Congres- American students and workers can We have all heard the horror stories sional directive to the INS that timely also enjoy the opportunity to work in of the long processing delays associ- and efficient service is not merely a the high tech and other industries de- ated with the Immigration and Natu- goal, but a mandate. manding a highly skilled workforce. ralization Service (INS). What was Our nation has undergone a dramatic Another $83 million, or 55 percent of once a 6-month process has now be- technological transformation. The U.S. the H–1B fee revenue, as a result of an come a three- to four-year ordeal. economy has enjoyed unprecedented amendment by Senator Kennedy, When I first introduced S. 2586, the INS expansion, in large part because of the would be allocated to workforce train- had roughly 2.3 million cases pending. high tech industry. In California alone, ing programs and demonstration Out of this number, California had this growth in technology has made projects to provide technical skills 600,000 naturalization and adjustment our State number one in high tech em- training for U.S. workers. I am hopeful of status cases pending. ployment by creating almost 800,000 that, in the end, we can work in a pro- While the INS has made some im- jobs and comprising 61 percent of Cali- vision to increase the H–1B visa fee provements in reducing processing fornia’s exports. I am convinced that from $500 to $1,000. This will double the times for some applications, the INS’s the economy of California as well as amount of funding for these important overall record keeping and computer the rest of the nation could run out of education and training programs. systems still suffer from serious flaws. steam if the driving engine—that is, I support lifting the H–1B visa cap, Many forms filed during the applica- the high tech industry—does not have but clearly it is only a short-term solu- tion process have been lost, automati- the resources it needs to continue its tion to a long-term problem. The tech- cally disqualifying immigrants from an unprecedented growth. nology industry recognizes this and has immigrant visa or naturalization be- Certainly, it is in our interest to en- already made significant financial con- cause they missed their INS appoint- sure that these industries, which are tributions to education training pro- ments. located in the U.S. and help drive our grams. These amendments represent an It is unacceptable that millions of economy, can continue to obtain quali- additional industry commitment to people who have followed our nation’s fied, highly skilled employees. This bill educating America’s workforce. laws, made outstanding contributions meets the needs of the industry by pro- Recent research indicates that the to our nation, and paid the requisite viding additional temporary visas for number of bachelor of science degrees fees have had to wait months, and even exceptional professional personnel. De- awarded in computer science and math years, to obtain the immigration serv- spite the billions of dollars that compa- fell 29 percent from 1985 to 1995. Engi- ices they need. These processing delays nies spend annually to train their work neering degrees fell 16 percent from have had a negative impact on busi- force, a gap still exists between profes- 1985 to 1997; computer and information nesses seeking to employ or retain es- sionals available in the U.S. work force sciences experience a 42 percent drop. sential workers. and the needs of employers. Often em- Yet it is expertise in these very areas Faced with a shortage of highly ployers’ needs are immediate; they that businesses, especially high-tech- skilled workers in the U.S., many of cannot afford to wait for work force nology companies, need in order to our nation’s businesses, including training or retraining while positions stay globally competitive. those in the high tech industry, must remain unfilled. Our society is undergoing a dramatic increasing rely on the INS to help pro- I look forward to the day when it is technological transformation. Informa- vide them with access to highly skilled not necessary to bring in workers from tion technology has changed every as- foreign professionals. However, long abroad for these positions because Cali- pect of our society, from telephone and delays and inconsistencies in INS proc- fornia’s schools are producing students banking services to commerce and edu- essing are causing many companies to who can match the best and brightest cation. Given this, the demand for postpone or cancel major projects that from anywhere across the globe.∑ highly skilled professionals has ex- support their fiscal growth. Mr. LEVIN. Mr. President, the Sen- ploded. Even excluding the bio- I believe the backlog reduction provi- ate has now approved an increase in technology industry, the high-tech ex- sions included in this bill will send a the total number of H–1B non- plosion has created over 4.8 million clear signal to the INS that it is time immigrant visas made available to jobs in the United States since 1993 and to change the way they do business. skilled foreign workers. produced an industry unemployment The provisions would require the INS I supported that increase because I rate of 1.4 percent. to process H–1B applications and other believe it will help meet this country’s Despite the billions of dollars that non-immigrant visa applications with- growing demand for people with high companies spend annually on training, in 30 days, and naturalization applica- skills, particularly in fast growing in- a gap still exists between professionals tions, permanent employment visas, dustries such as the high technology available in the U.S. workforce and the and other immigration visa applica- industry. However, I want to make needs of employers. We need to raise tions within six months. In addition, clear that I understand this bill to be a the H–1B cap for the next few years be- the provisions would establish a sepa- short-term fix for the needs of our cause often employers’ needs are im- rate account with the INS to fund economy and not a long-term solution. mediate; they cannot afford to wait for backlog reduction efforts. If Congress is going to deal with the workforce training or retraining while This account would permit the INS workforce needs in this country we can positions remain unfilled. I look for- to fund across several fiscal years in- not simply rely on the H–1B program. ward to the day when it is not nec- frastructure improvements, including The national skill shortage problem essary to bring in workers from abroad additional staff, computer records must be resolved by expanding training for these positions because California’s management, fingerprinting, and na- programs for American workers and in- schools are producing students who can tionwide computer integration. Fi- creasing educational opportunities for match the best and brightest from any- nally, the provisions would require the our young people. where across the globe. INS to put together a plan on how it Section 10 of this bill provides sig- I am also pleased that the Senate has intends to eliminate existing backlogs nificant new resources for funding new adopted as an amendment to the H–1B and report on this plan before it could innovative activities in K–12 math and legislation, the provisions of S. 2586, obtain any appropriated funds. science across the nation. It also rep- the ‘‘Immigration Services and Infra- The backlog reduction provisions are resents a major boost beyond what was structure Improvement Act of 2000,’’ intended to provide the INS with direc- provided in the H–1B legislation in 1998. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9657 Under the 1998 H–1B bill, the amount of dren with our own commitment to The PRESIDING OFFICER. The Sen- funding for the National Science Foun- helping them acquire the skills they ator from Utah. dation (NSF) K–12 activities was fairly seek to be effective educators in the Mr. HATCH. Mr. President, we are small—less than $6 million in FY 2000. digital age. here today in the crunch of end-of-ses- Thanks to the leadership of Senator I also supported this bill because it sion business to debate and take time FEINSTEIN and Senator KENNEDY, this guarantees that H–1B visas will be on four noncontroversial judicial nomi- legislation would more than double made available to those working at nees. This debate today was demanded that amount to $15 million. educational institutions, non-profit or- by Senate Democrats who, ironically, We can make further progress in our ganizations, and non-profit or govern- have stood in the way of these nomina- education and training needs by in- mental research organizations. Cur- tions made by President Clinton, their creasing the fee that sponsors pay for rently, these institutions, who recruit own President. These are Clinton nomi- H–1B visas. Hopefully, the Conference scholars and researchers with the high- nees the Democrats are holding up, Committee will increase the fee to est possible credentials, are forced to Clinton nominees whom Democrats are $1000 more than tripling the amount compete with for profit companies for insisting we take precious time to de- made available for job training grants, the limited number of visas available, bate. low income scholarships and NSF en- and have had difficulties obtaining H– For the past few years, Senate Demo- richment courses—opportunities, 1B visas for their prospective employ- crats have threatened shutdowns, which in the long-term, will produce a ees. claimed the existence of a so-called ju- better trained American workforce. Some of those visa holders are people dicial vacancy crisis, and complained The bill before us today does not in- like Thomas Hofweber, a first-year as- of race and sex bias in order to push crease the fee because the Senate can sistant professor in the Philosophy De- through President Clinton’s judicial not originate a revenue measure. How- partment at the University of Michi- nominees. These allegations are false. ever, I supported the bill because of a gan, who has conducted research in the First, there is and has been no judi- commitment made by both Repub- areas of metaphysics and epistemology cial vacancy crisis. consider, for exam- licans and Democrats on the Judiciary and is believed to be among the most ple, the Clinton administration’s state- Committee to increase the fee to $1000 talented young metaphysicians in the ments on this issue. At the end of the when the bill goes to conference with world. Another H–1B visa holder at 1994 Senate session, the Clinton admin- the House. Michigan State University’s Depart- istration in a press release entitled The focus on technology training for ment of Agricultural Economics is a ‘‘Record Number of Federal Judges teachers addresses a critical need, one researcher and teacher in Agribusiness Confirmed’’ took credit for having that I’ve fought for in my home state Management and brings an outstanding achieved a low vacancy rate. At that of Michigan. That is why I’m happy to background in the economics of horti- time, there were 63 vacancies and a 7.4 note that we’ve included language in cultural enterprises and the manage- percent vacancy rate. The Clinton ad- this bill, which I proposed, with the ment of their labor forces. ministration’s press release declared: support of Senator CONRAD, specifying It is of great benefit for Michigan ‘‘This is equivalent to ‘full employ- that the NSF should make teacher students to be able to study with these ment’ in the . . . federal judiciary.’’ training in the integration of tech- scholars. I am pleased that universities Today, there are 67 vacancies—after nology into the math and science cur- and research institutions will be able the votes today there will be only 63 riculum a priority in funding projects to obtain more needed visas under this vacancies, the same as in the 1994. In- from resources provided under this leg- bill. stead of declaring the judiciary fully islation. My office will be working with f employed as they did in 1994. Demo- the National Science Foundation as VISA WAIVER PERMANENT crats claim that there is a vacancy cri- they develop programs to be funded PROGRAM ACT sis. under this legislation so that invest- In fact, the Senate has confirmed ments in such professional develop- The PRESIDING OFFICER. Under President Clinton’s nominees at almost ment will lead the list of funding ini- the previous order, H.R. 3767, as amend- the same rate as it confirmed those of tiatives. ed, is passed. Presidents Reagan and Bush. President This provision is essential if we are f Reagan appointed 382 Article III going to realize the full potential of EXECUTIVE SESSION judges. Thus far, the Senate has con- our investment in new technology in firmed 373 of President Clinton’s nomi- the classroom. So few of our school dis- nees and, after the votes today, will tricts have been able to offer state-of- NOMINATIONS OF MICHAEL J. have confirmed four more. During the-art training, or any training at all REAGAN, OF ILLINOIS, TO BE President Reagan’s two terms, the Sen- for that matter, to their teaching staff. U.S. DISTRICT JUDGE FOR THE ate confirmed an average of 191 judges. Last year, a report by Education SOUTHERN DISTRICT OF ILLI- During President Bush’s one term, the Week’s National Survey of Teachers’ NOIS; SUSAN RITCHIE BOLTON, Senate confirmed 193 judges. After Use of Digital Content revealed some OF ARIZONA, TO BE U.S. DIS- these four judges are confirmed today, startling findings relative to the lack TRICT JUDGE FOR THE DISTRICT the Senate will have confirmed an av- of teacher training in integrating tech- OF ARIZONA; MARY H. MURGUIA, erage of 189 judges during each of nology into the curriculum. In a na- OF ARIZONA, TO BE U.S. DIS- President Clinton’s two terms. tional poll of over 1,400 teachers, 36 TRICT JUDGE FOR THE DISTRICT Second, there has not been a con- percent of teachers responded that OF ARIZONA firmation slowdown this year. Com- they received absolutely no training in The PRESIDING OFFICER. Under paring like to like, this year should be integrating technology in the cur- the previous order, the Senate will now compared to prior election years dur- riculum; another 36 percent said they go into executive session and proceed ing times of divided government. In had only received 1 to 5 hours of such to the consideration en bloc of Execu- 1988, the Democrat-controlled Senate training; 14 percent received 6 to 10 tive Calendar Nos. 652, 654, and 655, confirmed 41 Reagan judicial nominees. hours of such training; and only 7 per- which the clerk will report. After these four nominees are con- cent received between 11–20 hours. The assistant legislative clerk read firmed today, the Republican Senate This bill is an important step to- the nominations of Michael J. Reagan, this year will have confirmed 39 of wards addressing this problem, a step of Illinois, to be U.S. District Judge for President Clinton’s nominees—a nearly that I hope is followed by many others. the Southern District of Illinois; identical number. We are fortunate in my state and Susan Ritchie Bolton, of Arizona, to In May, at a Judiciary Committee across this country to find in the ranks be U.S. District Judge for the District hearing, Senator BIDEN, the former of teachers men and women who are of Arizona; chairman of the Judiciary Committee, deeply committed to helping America’s Mary H. Murguia, of Arizona, to be said: ‘‘I have told everyone, and I want children learn. I believe we have to U.S. District Judge for the District of to tell the press, if the Republican match their commitment to our chil- Arizona. Party lets through more than 30 judges S9658 CONGRESSIONAL RECORD — SENATE October 3, 2000 this year, I will buy you all dinner.’’ lutely false. Just this month, for exam- two is insignificant compared to the When he said this, Senator BIDEN ap- ple, President Clinton issued a state- average time that it takes to select parently believed that the confirma- ment alleging bias by the Senate. He and confirm a nominee. On average, tion this year of more than 30 judges said: ‘‘The quality of justice suffers the Clinton White House spends an av- would be fair. Well Senator BIDEN owes when highly qualified women and mi- erage of 315 days to select a nominee some people some dinners, maybe ev- nority candidates are denied an oppor- while the Senate requires an average of erybody in the press. After the votes tunity to serve in the judiciary.’’ The 144 days to confirm. today, the Senate this year will have White House, though, also issued a Under my stewardship, the Judiciary confirmed 39 judicial nominees. statement boasting of the high number Committee has considered President The 1992 election year requires a bit of women and minorities that Clinton Clinton’s judicial nominees more care- more analysis. has appointed to the federal courts: fully than the Democratic Senate did The Democrat-controlled Senate did ‘‘The President’s record of appointing in 1993 and 1994. Some individuals con- confirm 64 Bush nominees that year, women and minority judges is un- firmed by the Senate then likely would but this high number was due to the matched by any President in history. not clear the committee today. The fact that Congress had recently created Almost half of President Clinton’s judi- Senate’s power of advice and consent, 85 new judgeships. Examining the per- cial appointees have been women or after all, is not a rubber stamp. centage of nominees confirmed shows minorities.’’ The Senate, obviously, But there is no evidence of bias or of that compared to 1992, there is no slow- confirmed this record number of a confirmation slowdown. Senate down this year. In 1992, the Democrat- women and minorities. That is hardly Democrats claim that Republicans controlled Senate confirmed 33 of 73 in- evidence of systemic bias—or any bias have politicized the confirmation proc- dividuals nominated that year—or 45 at all. ess. Republicans, though, have not lev- percent. This year, the Senate will con- Last November, Senator JOSEPH ied false charges or used petty par- firm 25 of 44 individuals nominated in BIDEN, former chairman of the Judici- liamentary games. 2000—or 57 percent. Those who cite the ary Committee, stated: In conclusion, it always is the case 1992 high of 64 confirmations as evi- There has been argumentation occasion- that some nominations die at the end dence of an election-year slowdown do ally made . . . that [the Judiciary] Com- of the Congress. In 1992, when Demo- not mention these details. Nor do they mittee . . . has been reluctant to move on crats controlled the Senate, Congress mention that despite those 64 con- certain people based upon gender or eth- nicity or race. . . . [T]here is absolutely no adjourned without having acted on 53 firmations, the Democrat-controlled distinction made [on these grounds]. . . . Bush nominations. Currently there are Senate left vacant 115 judgeships when [W]hether or not [a nominee moves] has not only 38 Clinton nominations that are President Bush left office—nearly dou- a single thing to do with gender or race. . . . pending before the Judiciary Com- ble the current number of vacancies. I realize I will get political heat for saying mittee. Senate Democrats often cite Chief that, but it happens to be true. It is not the end of the line for nomi- Justice Rehnquist’s 1997 remarks as I personally appreciated Senator nees that do not get confirmed this evidence of a Republican slowdown. Re- BIDEN’s comments on that, while oth- year. Republican nominees who failed ferring to the 82 vacancies then exist- ers were trying to play politics with to get confirmed have bone on to great ing, the Chief Justice said: ‘‘Vacancies these issues. He knows how difficult it careers, both in public service and the cannot remain at such high levels in- is under the circumstances to please private sector. Senator JEFF SESSIONS, definitely without eroding the quality both sides on these matters. The chair- Governor Frank Keating, Washington of justice that traditionally has been man takes pain from both sides on attorney John Roberts, and law pro- associated with the federal Judiciary.’’ these matters. There is no question fessor Lillian BeVier are just a few ex- Senators who cite this statement, how- there are some on our side who have amples. Lillian BeVier and a number of ever, do not also cite the Chief Jus- wanted to slow down this process, and other women are prime examples of tice’s similar statement in 1993, when others on the other side have wanted to those who were denied the opportunity the Democrats controlled both the speed up the process. The important of being on the court for one reason or White House and the Senate: ‘‘There is thing is that we do a good process. another back in those days. perhaps no issue more important to the That is what we have tried to do. I bitterly resent anybody trying to judiciary right now than this serious The statistics confirm Senator play politics with this issue. I stand judicial vacancy problem.’’ As the head BIDEN’s position. Data comparing the ready to defend our position on the Ju- of the judicial branch, the Chief Jus- median time required for Senate action diciary Committee, and I look forward tice has continued to maintain pres- on male versus female and minority to confirming these last four nominees sure on the President and Senate to versus non-minority nominees shows today. And, of course, once we have speedily confirm judges. He has not only minor differences. During Presi- done that, we will have matched what singled out the Republican Senate, dent Bush’s final two years in office, was done back in 1994, when the Presi- however. Selective use of his state- the Democrat-controlled Senate took dent said we had a full judiciary, with ments to imply that he has is inappro- 16 days longer to confirm female nomi- a vacancy of 7.4 percent. priate. nees compared with males. This dif- I reserve the remainder of my time. The Chief Justice made additional ferential decreased to only 4 days when The PRESIDING OFFICER. The Sen- comments in 1997, which also under- Republicans gained control of the Sen- ator from Illinois is recognized. mine the claim of a vacancy crisis. ate in 1994. During the subsequent 105th Mr. DURBIN. It is my understanding After calling attention to the existing and 106th Congresses, it increased. that under the unanimous consent re- vacancies, he wrote: ‘‘Fortunately for The data concerning minority nomi- quest, I have 10 minutes to speak. the Judiciary, a dependable corps of nees likewise shows no clear trend. The PRESIDING OFFICER. Correct. senior judges has contributed signifi- When Republicans gained control in Mr. DURBIN. Mr. President, I have cantly to easing the impact of unfilled 1994, it took 28 days longer to confirm spoken with the staff of Senator LEAHY judgeships.’’ The 67 current vacancies, minority nominees as compared to and, if I go beyond 10 minutes, I ask in other words, are not truly vacant. non-minority nominees. This difference that the additional time be taken from There are 363 senior judges presently decreased markedly during the 105th that allocated to Senator LEAHY. serving in the federal judiciary. Al- Congress so that minorities were con- I thank Senator HATCH for his leader- though these judges’ seats are tech- firmed 10 days faster than non-minori- ship and friendship on the Senate Judi- nically counted as vacant, they con- ties. The present 106th Congress is tak- ciary Committee. We have our dif- tinue to hear cases at reduced work- ing only 11 days longer to confirm a ferences. When I served on the com- load. Assuming that they maintain a 25 minority nominees than it is to con- mittee, we had some profound dif- percent workload (the minimum re- firm non-minority nominees. ferences, but I respect him very much, quired by law), the true number of va- These minor differences are a matter and I respect the job he does. cancies is less than zero. of happenstance. They show no clear I thank Senator HATCH personally for Third, allegations of race or sex bias trend. And even if there were actual the kind attention which he has given in the confirmation process are abso- differences, a differential of a week or to the vacancies in my home State of October 3, 2000 CONGRESSIONAL RECORD — SENATE S9659 Illinois. I am happy to report that with granted enormous responsibilities, and Will, of His Owner’’, a man ‘‘Without the nomination and confirmation of enormous power. Social, Civil, or Political Rights.’’ The Michael Reagan, we will have a full In just the past year, the Supreme decisions of the Supreme Court—and at complement of Federal judges in our Court has offered important rulings on times, the opinion of just one Justice— State, which will make the workload abortion, school prayer, gay rights, aid can make the difference between hav- more manageable all across the State. to parochial schools, pornography, Mi- ing, or losing, a cherished right. So I thank Senator HATCH and also randa rights, violence against women, Perhaps that is the reason that my Senator FITZGERALD. We have been parental rights—just to name a few. colleague, the senior Senator from working for the last 2 years, on a very Not all of these decisions have turned Utah, is of the opinion that a Presi- bipartisan basis, toward approving out as I would have hoped. dent’s power to make nominations to these nominees to have come before For instance, take the case of U.S. the Supreme Court and to the federal the Senate. vs. Morrison. The Supreme Court bench is—and this is a quote—‘‘. . .the Before I address the nomination of struck down a provision of the Vio- single most important issue of this Michael Reagan, I would like to ad- lence Against Women Act that gave next election.’’ dress a larger issue which involves not victims of rape and domestic violence I think he’s right. The next President only the Senate Judiciary Committee the right to sue their attackers in fed- may have the opportunity to make two but the entire Senate, the Congress, eral court. Congress passed this law to or three appointments to the Supreme and the people of this country because give women an additional means of Court. He may even appoint the next this week marks the opening of the Su- pursuing justice when they are the vic- Chief Justice. preme Court’s new term. It is a good tims of assault. We passed this law be- In the first two hundred years since moment to reflect on the role of the cause the States themselves did not al- the signing of the Constitution, the Su- Supreme Court, its past, and its future. ways adequately pursue rapists and as- preme Court invalidated 128 laws that This brief statement that I present to sailants. And the States acknowledged had been passed by Congress. About you represents some of the concerns I this! one law every two years, on average. have about the Supreme Court, the role Thirty-six States had entered this Since 1995, however, the Court has it is playing, and the impact of the suit on behalf of the woman who had struck down 21 laws, more than four Presidential election on the future of been victimized. They wanted victims per year. This is an unprecedented as- that Court. of violence against women to retain sertion of judicial power. One of the most interesting books the right to bring their attackers to Will the next President try to use the ever written about America was writ- court. But the Supreme Court, in a appointment process to further shift ten by a French tourist by the name of narrow vote, decided otherwise. The the balance of power between the Alexis de Tocqueville. He came to the vote . . . five to four. branches of government? United States 165 years ago, traveling But this close margin is not unusual Will the next President of the United around different cities and making ob- on our highest court—it is becoming States use a litmus test to ‘‘pack’’ the servations about this American char- commonplace. Rarely has the Supreme Supreme Court with Justices—Justices acter. This was a brand new nation. De Court been so narrowly divided for whose minds were already made up on Tocqueville wrote in his famous work such a long period of time. The replace- important issues? his observations and took them back to ment of just one judge could dras- That is what the far right, members Europe. tically change the dynamic of the of the Federalist Society, want. They One might think that a book such as Court for decades to come. want to turn back the hands of the that would be lost in history. It turns Chief Justice Rehnquist and Justices clock. out that de Tocqueville’s observations Scalia and Thomas—the Court’s most So I’m inclined to agree with the dis- were so impressive that 165 years later conservative members—tend to vote tinguished Senator from Utah. This is, we still turn to this book, and I think together on hot button social and po- indeed, one of the most important it is nothing short of amazing that his litical issues such as affirmative action issues of the Presidential campaign. observations turn out to be valid and school prayer. Centrist conserv- Imagine a Supreme Court with three today. De Tocqueville made an obser- atives, Justices O’Connor and Kennedy, Antonin Scalia’s—three Clarence vation about America and about all of usually join them. The dissent is often Thomases—three radically conserv- the important political questions in written by the more liberal justices— ative Justices bent on greatly restrict- our country which sooner or later turn Stevens, Souter, Ginsberg and Breyer. ing the authority of the federal govern- out to be judicial questions. This Both Ginsberg and Breyer are Clinton ment. The philosophical balance of the wasn’t a criticism. Quite the contrary. appointments. Court would shift dramatically. One by De Tocqueville admired the innova- Many of the Supreme Courts deci- one the protections that have been tions in the American judiciary that sions have been made on the basis of a built up over the past thirty five years granted the courts the independence single vote. Partial birth abortion— could fall. and clarity of function that were found five to four. Age discrimination—five If you read the history of the Su- nowhere else in the world. De to four. Gay rights—five to four. preme Court, you will note that up Tocqueville believed these observations Warantless police searches—five to until the time Franklin Roosevelt was would mean that America’s judicial four. The federal role in death penalty President, it was an extremely conserv- system would hear, and act on, the cases—five to four. ative and somewhat lackluster Court. most important issues of the day. He These are not mere academic cases. The Court started to change during couldn’t have been more correct. These are decisions that change peo- Roosevelt’s Presidency, and beyond. Think about the ‘‘big issues’’. The ple’s lives. We all hope that the Su- Republican and Democratic Presidents issues that the American people have preme Court will act wisely and fairly. thereafter appointed more activist cared about—argued about—most deep- But we also all know—history and judges who looked at the problems fac- ly. The issues that spark the most de- human nature tell us so—that this is ing America. One by one, the protec- bate—and the most passion. Sooner or not always the case. tions which we built up over that pe- later, the battle over these issues We learned in school about the Dred riod of time would be in jeopardy. comes before the highest court in the Scott case. Mr. Scott had lived in my Protection of the rights of minori- land. Slavery. Child labor. Worker safe- home state of Illinois—where slavery ties, women, and the handicapped; pro- ty. Monopolies. Unionization. Freedom was banned—and sued for his freedom tection of voting rights, civil rights, of the press. Capital punishment. Seg- on the basis that he had already lived worker rights, reproductive rights; pro- regation. Environmental protection. as a free man, and had the right to con- tection of the environment; protection Voting rights. A woman’s right to tinue to do so. The Supreme Court in- from gun violence; and protection of choose. famously disagreed, finding that Mr. our fundamental freedoms as Ameri- The battle always comes to the Su- Scott was nothing more than prop- cans. One by one, a different court preme Court; always comes before the erty—‘‘to be Used in Subserviency to could challenge each of these protec- nine justices who are Constitutionally the Interests, the Convenience, or the tions. S9660 CONGRESSIONAL RECORD — SENATE October 3, 2000 No longer could the federal govern- sumers, the handicapped and the elder- fully commissioned law enforcement ment require background checks for ly. position that he has held for the past gun purchases, rein in polluters, or pro- Martin Luther King., Jr., once said, three years. His background as a police tect the persecuted. ‘‘The moment is always right to do officer certainly qualified him in that I hope all Americans will give some what is right.’’ capacity. As an Honorary Deputy Sher- thought to the type of Supreme Court I think the moment is right to hold iff, Mr. Reagan has full arrest powers they feel can best serve the American the tobacco industry responsible for and is subject to be called to duty in people. I hope they give it some the costs incurred by the federal gov- the event of an emergency. thought before they go out and vote in ernment for the medical treatment of Mr. Reagan began his career in public November. individuals made ill by their deadly service as a police officer after grad- In addition to who will be appointed, products. uating with a Bachelor’s of Science de- it’s also critical to realize who is not I think the moment is right to hold gree from Bradley University in 1976, being appointed. the gun industry accountable for the his law degree from St. Louis Univer- More than any previous president, irresponsible design, manufacture, dis- sity in 1980. President Clinton has succeeded in di- tribution and marketing of their lethal Although Mr. Reagan holds many no- versifying the bench. Nevertheless, weapons. table positions, the most important women and minorities are still under- The moment is right to ensure that roles he plays are that of husband and represented in our Federal courts. It HMOs and health insurance companies father. Mr. Reagan has been married to isn’t as if some Members of Congress can be held accountable for their Elaine Catherine Edgar since 1976. have not tried to address this dis- wrongdoing that results in the injury They have four boys. I have met them parity. But as hard as we try to diver- or death of American citizens. all; they are great kids. sify the bench, we have not been able The moment may be right to elect a The Reagans will soon be celebrating to produce the record of success that President who will appoint Justices their 25th anniversary. It is a great we would like to show. who reflect that point of view and will family. I wonder how one of the great Jus- protect our civil liberties. I am pleased that the Senate will tices ever to serve on the Supreme I think the moment is right to re- have this opportunity to vote for Mi- Court, Justice Thurgood Marshall, move barriers to the bench so that chael Reagan. He possesses a rare com- would have reflected on the treatment every citizen—whether man, woman, or bination of intelligence, practical expe- of a nominee, Ronnie White for the whatever ethnic, racial, or religious rience, temperament, and devotion to Federal District Court in Missouri. He background—can be adequately rep- public service that makes for a great is a member of Missouri Supreme resented on our court. Federal judge. I look forward to his Court. He is African American. He was I will say a word on behalf of my service on the Federal bench. judged qualified and reported by the nominee who is before the Senate, Mi- I yield the floor. Senate Judiciary Committee. Then he chael Reagan, the judicial nominee for The PRESIDING OFFICER. The Sen- was rejected on the Senate floor by a the U.S. District Court for the South- ator from Virginia. party-line vote. Some labeled him a ern District of Illinois. Senator FITZ- Mr. ROBB. Mr. President, I join my ‘‘judicial activist.’’ They produced GERALD and I reached an agreement distinguished colleagues to express my some excuses or reasons for not con- about the selection of these nominees. outrage at the treatment of judicial firming him, and he was defeated—one Michael Reagan is the product of this nominees this year. I do so with the of the few times in modern memory agreement. same preface as my distinguished that a judge made it to the floor and Michael Reagan possesses all the friend from Illinois, in saying that I lost on a recorded vote. qualities necessary to make a tremen- have a good working and personal rela- I wonder how Justice Thurgood Mar- dous contribution to the federal bench. tionship with the chairman of the com- shall, the first black Justice appointed He has strong bipartisan support, as mittee, but the failure to confirm the to the Supreme Court 33 years ago, well as, the support of several re- nominees at this time is an outrage. would observe and reflect on what hap- spected judges, leaders, and organiza- I would like to focus my remarks on pened to Ronnie White. tions including: the National Sheriffs’ our efforts to fill one of the vacancies I think Justice Marshall would have Association; the Honorable Moses Har- on the Fourth Circuit Court of Appeals. viewed the current state of judicial rison II, Chief Justice, Illinois Supreme The Fourth Circuit Court of Appeals nominations differently than the Fed- Court; The Most Reverend Wilton D. has fifteen seats. Five of those seats eralist Society. This conservative Gregory, Bishop of the Diocese of are currently vacant. group has over 25,000 members plus Belleville; the Illinois Federation of We have one seat on the Fourth Cir- scores of affiliates, including former Teachers; and the Illinois Pharmacists cuit Court of Appeals that has been va- Independent Counsel Kenneth Starr; Association. cant for a decade—longer than any Supreme Court Justices Thomas and They have all written letters sup- other vacancy in the nation. Scalia; and University of Chicago’s porting Michael Reagan’s nomination Filling this vacancy has been deemed Richard Epstein and Frank to fill the Southern District of Illinois’ a ‘‘judicial emergency’’ by the U.S. Ju- Easterbrook, also a federal appellate judicial vacancy. dicial Conference. judge. Michael Reagan is a full-time public On June 30, the President of the And their numbers are growing. The servant who wears several hats. In ad- United States nominated Roger Greg- Federalist Society has chapters in 140 dition to his private practice, Mr. ory, a distinguished lawyer from Vir- out of the 182 accredited law schools. Reagan serves as a Commissioner of ginia, to fill this vacancy. Mr. Gregory The campus chapter at the University the Attorney Registration and Discipli- graduated summa cum laude from Vir- of Illinois College of Law is very ac- nary Commission of the Supreme Court ginia State University and received his tive. of Illinois. Mr. Reagan has held this po- J.D. from the University of Michigan. I don’t have to tell you about the So- sition since 1995 and is responsible for He has an extensive federal practice, is ciety’s ‘‘originalist’’ approach to the supervising the attorney registration an accomplished attorney, and was de- Constitution. Justice Scalia’s and Jus- and disciplinary system in Illinois, a scribed by Commonwealth Magazine as tice Thomas’s opinions clearly reflect very important assignment. one of Virginia’s ‘‘Top 25 Best and their point of view. In addition, Mr. Reagan serves as As- Brightest.’’ And he has bipartisan sup- I don’t have to tell you the Fed- sistant Public Defender in St. Clair port. Senators JOHN WARNER and eralist Society has been instrumental County, Illinois. In this capacity, he ARLEN SPECTER have also written to in influencing the law. They have represents indigent criminal defend- the Judiciary Committee to seek a helped to weaken or rolled back stat- ants charged with major felonies. Mr. hearing for Mr. Gregory. utes on civil rights and affirmative ac- Reagan has served as an Assistant Pub- Despite the well-documented need for tion; voting rights; women’s right’s lic Defender since 1996. another judge on this court, and de- and abortion rights; workers’ rights; Mr. Reagan also serves as an Hon- spite Mr. Gregory’s stellar qualifica- prisoners’ rights; and the rights of con- orary Deputy Sheriff in St. Clair, a tions, the Judiciary Committee has October 3, 2000 CONGRESSIONAL RECORD — SENATE S9661 stubbornly refused to even grant Mr. In my view, courts should better re- been waiting for more than 31⁄2 years Gregory the courtesy of a hearing. In flect the people over whom they pass and 1 year respectively. failing to provide Mr. Gregory with a judgment. We still have time, if only Judge Helene White, who is a court of hearing, the Judiciary Committee is we have the will to act. In 1992, when appeals judge in Michigan, was first abdicating its Constitutional responsi- there was a Republican in the White nominated in January of 1997. Her bility and is effectively standing in the House and the Democrats ran the Sen- nomination to the Sixth Circuit Court courthouse door to block this nomina- ate, we confirmed 6 Circuit Court of Appeals has never been acted upon. tion. judges later than July: 3 in August 2, in She has never been granted a hearing. Article II of the United States Con- September 1, in October. In fact, its in- Kathleen McCree Lewis was nomi- stitution makes clear that the Presi- structive to look at the one nominee nated to the Sixth Circuit over a year dent is to nominate and the Senate is who was confirmed in October of 1992. ago. It has been pending before the Ju- to provide advice and consent on the Timothy K. Lewis was nominated to diciary Committee for over a year. No nomination. It is difficult for the Sen- the Third Circuit Court of Appeals on hearing, no action. ate to provide advice or give its con- September 17. The Judiciary Com- These are two judicial nominees from sent if it won’t even allow the nominee mittee gave him a hearing on Sep- my home State of Michigan. Despite to be heard. Many excuses have been tember 24. He was reported out of the there being no objection that I know of offered for why this nominee won’t be Judiciary Committee on October 7, and to their nominations, and in the ab- granted a hearing. One convenient ex- confirmed by the Senate on October 8. sence of any explanation whatsoever, cuse is that this is a presidential elec- Roger Gregory is an outstanding they have been kept in limbo without 1 tion year. nominee. Rather than standing in the even a hearing for 3 ⁄2 years and 1 year There is nothing in Article II of the courthouse door, we ought to throw the respectively. I believe that is truly un- United States Constitution, however, door open and desegregate the Fourth conscionable. In the history of the Sen- that suspends its provisions every four Circuit. We ought to end this judicial ate, no nominee has waited as long as years. We have a constitutional obliga- Judge White for a confirmation hear- and moral emergency and we ought to tion to render our advice and, if appro- ing. The seat that she has been nomi- do it now. priate, grant our consent or, if not ap- 1 2 Mr. President, I yield the floor and nated for has been vacant for 5 ⁄ years. propriate, decline to grant our consent. reserve any time remaining for those It is considered a ‘‘judicial emergency’’ But we cannot just throw up our hands by the Judicial Conference of the covered under the unanimous consent and declare that this provision of the United States. order. Constitution is rendered meaningless There is no apparent reason for the The PRESIDING OFFICER (Mr. during presidential election years. denial of hearings for these two nomi- ENZI). The Chair, in his capacity as a The supposed logic that underlies nees. No one has questioned their Senator from Wyoming, suggests the this excuse is that the nominee may qualifications for the bench. No one absence of a quorum with time to be al- not reflect the judicial philosophy of that I know of objects to their can- the next Administration. But how can located equally between the sides. didacies. It is well known Judge White Without objection, the clerk will call we even question the nominee’s judi- and Ms. Lewis are both talented, hard- the roll. cial philosophy if we never hear from working nominees. The legislative clerk proceeded to him. So even this excuse argues in Each are highly respected for their call the roll. favor of granting the nominee a hear- records which show them to be women Mr. LEVIN. Mr. President, I ask ing. of integrity and fairness. Judge White The most recent excuse for failing to unanimous consent that the order for has had a distinguished career. She was act on Mr. Gregory’s nomination is the quorum call be rescinded. a trial judge for 10 years on the Wayne The PRESIDING OFFICER. Without that five years ago a gentleman from County Circuit Court bench and in 1992 North Carolina was nominated for this objection, it is so ordered. was elected to the Michigan Court of Mr. LEVIN. Mr. President, the Sen- seat, and so the argument goes this Appeals where she has served ever ate today will vote on the confirmation seat now ‘‘belongs’’ to North Carolina. since. She also serves on the board of of a number of judicial nominees. I not But five years before that, when this directors of the Michigan Legal Serv- seat and three others were created, a only have no problem with that, I very ices and the board of governors of the Virginian was arguably nominated to much favor it. These nominees deserve American Jewish Committee. fill this seat—but the Senate only a vote. The districts in which they will Kathleen McCree Lewis is a distin- acted to fill the other three seats and serve surely deserve to have their guished appellate practitioner at the this one has been vacant ever since. nominations acted upon. I believe the Detroit law firm of Dykema Gossett, More importantly, however, seats on Nation, as a whole, deserves to have one of the most prestigious law firms Courts of Appeal don’t ‘‘belong’’ to any these nominees, and other nominees in our State. She also served as a com- state. As I have already noted, there awaiting hearings and votes acted on missioner on the Detroit Civil Service are only ten judges currently sitting in by this Senate as well. Commission and on the Civic Center the Fourth Circuit. Four of these ten The Judiciary Committee held hear- Commission. She has argued dozens of judges are filling seats that were pre- ings for three of the nominees and ap- cases and is a respected appellate law- viously filled by a candidate judge and proved those nominations less than a yer in the very circuit to which she has then from another state. Finally, it’s a week after the nominations were re- been nominated. She also happens to be little hard for the senior Senator from ceived. Other nominees wait in vain for the daughter of the late Wade McCree, North Carolina to complain that the years just for a hearing. That strikes a highly respected judge who served on seat belongs to North Carolina when he me as being an arbitrary and inex- the Sixth Circuit, and was a former So- is the one who has been blocking a plicable system, unfair to nominees licitor General of the United States. If North Carolinian from filling the seat. awaiting hearings, awaiting votes, and confirmed, Kathleen McCree Lewis will Rather than hide behind excuses, the unfair to the districts or the circuits in be the first African American woman Senate Judiciary Committee ought to which they would serve if confirmed. I ever to serve on the Sixth Circuit. seize the opportunity to right a histor- believe it is also unfair—perhaps this is Gov. George Bush has said that the ical wrong. The Fourth Circuit Court most important of all—to the people Senate should act on nominees within of Appeals has the largest percentage who await justice in their courts. 60 days. That deadline passed years ago of African-Americans in the nation. Two Michigan nominees to the Sixth for Judge White and for Kathleen Yet, the Fourth Circuit has never been Circuit have been waiting unsuccess- McCree Lewis. According to Governor integrated. In fact, it is the only Cir- fully for a hearing for more than 31⁄2 Bush: cuit in the country that has never in years and 1 year respectively. Two The Constitution empowers the President history had minority representation. If women, highly qualified, nominated to nominate officers of the United States, we were to confirm Roger Gregory— from Michigan for the Sixth Circuit with the advice and consent of the Senate. who is African-American—we could where there is a severe shortage of Then he said: knock down yet another barrier that judges and an enormous caseload that That is clear-cut, straightforward lan- has existed for far too long. sits there pending, while they have guage. It does not empower anyone to turn S9662 CONGRESSIONAL RECORD — SENATE October 3, 2000 the process into a protracted ordeal of unrea- The Senate’s delay in considering Presi- less than a week. At the same time, I sonable delay and unrelenting investigation. dent Clinton’s nominations to the [Sixth Cir- will be thinking of the vacancies that To keep these nominees pending for cuit] court is unfair to Michigan, to the exist on the Sixth Circuit Court of Ap- so long without hearings is unfair to nominees, and to anyone whose future might peals that have remained unfilled for be affected by a decision of this court. the nominees, particularly where there years, where there is a judicial emer- is no known objection and where there An editorial in the Observer and Ec- gency, an enormous backlog, and is no explanation for the refusal to centric newspapers urged the Judiciary where, despite all the pleas from the grant hearings. Committee and its members to ‘‘give bar association, the Sixth Circuit, from Even more important, it is unfair to two thoughtful and well-respected indeed the Chief Justice of the United the citizens served by the court. There Michigan lawyers the courtesy of time- States, to vote on confirmations, we is a large backlog of cases in the Sixth ly hearings on their nominations to the have these two well-qualified women Circuit which is a serious concern for Federal judiciary that is currently from Michigan sitting there, awaiting not just Michigan but for all the States hamstrung in carrying out its work.’’ a hearing, endlessly in limbo, nothing that are served by that court. Over An editorial in the Detroit News de- but silence, no explanation as to why one-fourth of the judgeships on the scribed the failure to act on Sixth Cir- their hearings are refused, no objection Sixth Circuit are currently vacant, and cuit nominees as ‘‘the sort of die-hard being noted or stated to their nomina- that is among the highest vacancy rate intransigence that should be out of tions, only two well-qualified women of any circuit court in the country. bounds.’’ left in limbo and in silence. Judge Gilbert Merritt, who recently And a Jewish News editorial called We can do better. We should do bet- served as chief judge of the Sixth Cir- the stall a ‘‘travesty of justice.’’ ter. I hope we find a way some day to cuit, wrote in a March 20 letter to If Senators have concerns about do better. Chairman HATCH: The court is ‘‘hurting something in the records of these I ask unanimous consent to print in badly and will not be able to keep up Michigan candidates—and no one has the RECORD the following letters and with its workload due to the fact that raised anything to that effect—then editorials. the Senate Judiciary Committee has Senators should air their concerns in a There being no objection, the mate- acted on none of the nominations to committee hearing and then let the rials were ordered to be printed in the our court.’’ committee vote. It is unfair to Michi- RECORD, as follows: Judge Merritt went on to say the fol- gan, it is unfair to the citizens who use U.S. COURT OF APPEALS lowing—and this is the former chief this court to keep these judicial nomi- FOR THE SIXTH CIRCUIT, judge who still sits on the court. This nees endlessly in limbo, despite the ab- Nashville, TN, March 20, 2000. is what Judge Merritt said: sence of any objection that I know of Re: Vacancies on the Sixth Circuit Court of Our court should not be treated in this to their nominations and with no ex- Appeals fashion. The public’s business should not be planation forthcoming whatsoever. Hon. ORRIN HATCH, treated this way. The litigants in the Fed- A number of us have spent many U.S. Senate, eral courts should not be treated this way. Washington, DC. The remaining judges on a court should not hours over the last few years trying to DEAR SENATOR HATCH: Several years ago be treated this way. The situation in our get hearings for these Sixth Circuit Court of Appeals nominees from Michi- during the period that I was Chairman of the court is rapidly deteriorating due to the fact Executive Committee of the United States that 25 percent of the judgeships are vacant. gan, and yet two well-qualified can- Judicial Conference, we met from time to Each active judge of our court is now partici- didates, each deserving a hearing and a time, and you were always concerned that pating in deciding more than 550 cases a Senate vote, have been left in limbo the Senate Judiciary Committee do its duty year—a caseload that is excessive by any with no explanation, no stated objec- in filling the vacancies on the various Courts standard. In addition, we will have almost of Appeals. I write now to you to request 200 death penalty cases that will be facing us tion. What we are doing today in approv- that the Judiciary Committee bring up for a before the end of the next year. hearing and a vote nominations to the Sixth The Founding Fathers certainly intended ing these four nominees, it seems to Circuit Court of Appeals. the Senate ‘‘advise’’ as to judicial nomina- me, is surely our function, totally ap- I was taken aback to see an alleged state- tions, i.e., consider, debate and vote up or propriate, and I believe and hope the ment of Senator Mike DeWine from Ohio down. They surely did not intend that the nominees will be confirmed. that no vote would be taken for a nomina- Senate, for partisan or factional reasons, As we do this, we should also focus on tion to fill the vacancy currently existing would remain silent and simply refuse to nominees pending in the Judiciary from Ohio. Senator DeWine was quoted as give any advice or consider any vote at all, Committee, awaiting hearings or saying that due to partisan considerations thereby leaving the courts in limbo, under- there would be no more hearings or votes on staffed and unable to properly carry out awaiting a vote by the committee after a hearing, who are left there no matter vacancies for the Sixth Circuit Court of Ap- their responsibilities for years. peals. I hope that this was not an accurate That is Judge Merritt’s letter. In ad- how long they have been waiting, quote. dition to that, the Judiciary Com- sometimes, again, years in the case of The Sixth Circuit Court of Appeals now mittee chairman, Senator HATCH, re- Helene White and Barry Goode. We has four vacancies. Twenty-five per cent of ceived a letter from 14 former presi- have others who have been waiting the seats on the Sixth Circuit are vacant. dents of the State bar of Michigan. since April of last year, June of last The Court is hurting badly and will not be able to keep up with its work load due to the These include, by the way, Democrats year, August of last year, September of last year. I think we can do better than fact that the Senate Judiciary Committee and Republicans. That letter pleads for has acted on none of the nominations to our action relative to the situation on the that. We should rise above that kind of Court. One of the vacancies is five years old Sixth Circuit. nonaction on the part of our Judiciary and no vote has ever been taken. One is two The Michigan bar presidents wrote in Committee. years old. We have lost many years of judge their letter to Senator HATCH that the No plea from me or from others who time because of the vacancies. state of affairs on the Sixth Circuit has have worked with me on these nomina- By the time the next President is inaugu- ‘‘serious adverse effects on the bar and tions has produced hearings, despite rated, there will be six vacancies on the Court of Appeals. Almost half of the Court the administration of justice for our the editorials, despite the letters from the bar associations and from Judge will be vacant and will remain so for most of clients. We urge you to promptly 2001 due to the exigencies of the nomination schedule hearings for, and to pass to Merritt. Despite all these efforts, we process. Although the President has nomi- the Senate floor for a vote, the nomi- have received just silence and state- nated candidates, the Senate has refused to nations of Judge Helene White and ments about waiting a little longer or take a vote on any of them. Kathleen McCree Lewis.’’ ‘‘we’ll see’’ or ‘‘we’ll try.’’ Our Court should not be treated in this In the last few months, there have We should be better than that. The fashion. The public’s business should not be also been several articles and editorials Constitution wants us to be better than treated this way. The litigants in the federal that. I will vote to confirm these nomi- courts should not be treated this way. The in papers around Michigan calling on remaining judges on a court should not be the Senate to confirm the court of ap- nees whose nominations, in many treated this way. The situation in our Court peals nominees for Michigan. cases, were sent to the Senate, heard is rapidly deteriorating due to the fact that An editorial in the Detroit Free by the Judiciary Committee, and ap- 25% of the judgeships are vacant. Each ac- Press said: proved by the Judiciary Committee in tive judge of our Court is now participating October 3, 2000 CONGRESSIONAL RECORD — SENATE S9663 in deciding more than 550 cases a year—a As former Michigan Bar Presidents, we cludes Paul C. Light, of the Brookings Insti- case load that is excessive by any standard. agree with our Ohio colleagues that the situ- tution (usually a liberal Washington think In addition, we have almost 200 death pen- ation has serious adverse affects on the bar tank) and Virginia L. Thomas, of the Herit- alty cases that will be facing us before the and the administration of justice for our cli- age Foundation (usually conservative) in a end of next year. I presently have six pend- ents. We urge you to promptly schedule study of the experiences of 435 cabinet and ing before me right now and many more in hearings for, and to pass to the Senate floor sub-cabinet officials who served in the the pipeline. Although the death cases are for a vote, the nominations of Judge Helene Reagan, Bush and Clinton administrations. White and Kathleen McCree Lewis. very time consuming (the records often run Some found treatment by the White House Respectfully, to 5000 pages), we are under very short dead- appointments people ‘‘an ordeal.’’ lines imposed by Congress for acting on Honorable Victoria A. Roberts (1996– these cases. Under present circumstances, we 1997); Honorable Dennis W. Archer Others—35 percent of Reagan administra- will be unable to meet these deadlines. Un- (1984–1985); John A. Krsul (1982–1983); tion appointees and 57 percent of Clinton’s like the Supreme Court, we have no discre- George T. Roumell, Jr. (1918–1986); Wil- nominees—were held hostage to the politics tionary jurisdiction and must hear every liam G. Reamon (1976–1977); Joseph L. of the U.S. Senate in waiting for confirma- case. Hardig, Jr. (1977–1978); Eugene D. tion hearings. The Founding Fathers certainly intended Mossner (1987–1988); Donald Reisig That’s one reason a lot of talented people that the Senate ‘‘advise’’ as to judicial nomi- (1988–1989); Robert B. Webster (1989– are not about to consider appointment to top nations, i.e., consider, debate and vote up or 1990); Fred L. Woodworth (1991–1992); government positions. down. They surely did not intend that the George A. Googasian (1992–1993); Jon R. A perfect instance of this general problem Senate, for partisan or factional reasons, Muth (1994–1995); Thomas G. Kienbaum concerns the nominations of two Michigan would remain silent and simply refuse to (1995–1996); and Edmund M. Brady, Jr. lawyers to fill vacancies on the U.S. Sixth give any advice or consider and vote at all, (1997–1998). Circuit Court of Appeals that have been thereby leaving the courts in limbo, under- twisting slowly in the wind of the U.S. Sen- staffed and unable properly to carry out [From the Detroit Free Press, May 2, 2000] ate for far too long. their responsibilities for years. JUDGES ON HOLD: SENATE HURTS JUSTICE BY You and other members of the Senate have DELAYING CONFIRMATIONS Helene White is presently a member of the appeared before the Judicial Conference and Michigan Court of Appeals; nominated by The 6th Circuit Court of Appeals now has President Clinton in January 1997, Judge other judges’ groups many times and said four vacancies. Twenty-five percent of the White has yet to receive a hearing from the that you care about the federal courts. I seats . . . are vacant. The court is hurting hope that you will now act to help us on the badly and will not be able to keep up with its Senate Judiciary Committee. Kathleen Sixth Circuit Court of Appeals. We need your workload due to the fact that the Senate Ju- McCree Lewis, the daughter of former U.S. help and the help of the two Senators from diciary Committee has acted on none of the Solicitor General Wade McCree, is a partner Ohio, the two Senators from Tennessee, the nominations to our court.’’ in the Dykema Gossett law firm in Detroit; two Senators from Kentucky, and the Sen- Those were the words of Judge Gilbert her nomination has been pending before the ators from Michigan. Merritt, former chief judge of the Cin- Judiciary Committee since September, 1999. Sincerely, cinnati-based circuit, in a letter last month The Sixth Circuit is authorized to have 16 GILBERT S. MERRITT. to Senate Judiciary Chairman Orrin Hatch, judges. Currently, the Court has four vacan- R-Utah, and eight other senators—including cies, one of which goes back for five years. JULY 7, 2000. Senates Carl Levin and Spencer Abraham of For the Court to operate at 75 percent effi- Re: Vacancies on the Sixth Circuit Court of Michigan, one of eight states covered by the ciency means long delays to the litigants Appeals. circuit. and enormous workloads for the remaining Hon. ORRIN HATCH, Merritt should not be alone in his outrage. judges (each of whom now has a caseload of U.S. Senate, The Senate’s delay in considering President 550 cases each year). Authorities now con- Washington, DC. Bill Clinton’s nominations to the court is sider the number of vacancies in the federal Hon. PATRICK LEAHY, unfair to Michigan, to the nominees, and to court system to constitute a ‘‘judicial emer- U.S. Senate, anyone whose future might be affected by a gency.’’ decision of this court. Washington, DC. What’s going on here? DEAR SENATORS HATCH AND LEAHY: Re- The judicial confirmation process has cently, the former and current presidents of bogged down in mean-spirited, petty partisan Michigan’s Senator Carl Levin, a Democrat the Ohio State Bar wrote Senators DeWine wrangling between Democrat Clinton and and a minority member of the Judiciary and Voinovich a letter expressing their deep the Republican-controlled Senate, which Committee, says it’s because Republicans in concern over the present situation in the seems determined to wait out the lame duck the Senate, hoping to win the presidency Court of Appeals for the Sixth Circuit. With and let his nominations wither. this fall, have decided to hold up judicial It’s not just the 6th Circuit, either. Accord- four of the sixteen seats vacant, the circuit nominations from the Clinton White House. ing to the Senate Judiciary Committee, is in a state of judiciary emergency. Former there are 78 vacancies and 10 future vacan- As evidence, he produces a table showing Chief Judge Gilbert Merritt has said: that while the Democrats controlled the ‘‘Our Court should not be treated in this cies in the federal judiciary. Only seven judges have been confirmed this year. Six Senate during the Bush Administration, a fashion. The public’s business should not be total of 66 federal judges were confirmed. treated this way. The litigants in the federal nominees are pending on the Senate floor, 39 courts should not be treated this way. The in committee, one nominee has withdrawn. However, when the GOP ran the Senate The 6th Circuit vacancies are for seats va- remaining judges on a court should not be during the first term of the Clinton Adminis- cated by Judges Damon J. Keith and Cor- treated this way. tration, 17 judges were confirmed. nelia Kennedy. Michigan Appeals Court So far in Clinton’s second term, the Senate * * * * * Judge Helene White was nominated in Janu- has confirmed only seven judges, with a total ‘‘The Founding Fathers certainly intended ary 1997 to fill the Keith vacancy. She has of 33 judicial nominees hanging fire before that the Senate ‘‘advise’’ as to judicial nomi- never had even a hearing. Nominee Kathleen nations, i.e., consider, debate and vote up or McCree Lewis has been waiting since Sep- the Judiciary Committee without any hear- down. They surely did not intend that the tember 1999. ings scheduled on their nominations. There Senate, for partisan or factional reasons, This is a disgrace that did not have to hap- are at present 81 vacancies in the federal ju- would remain silent and simply refuse to pen. Abraham sits on the Judiciary Com- diciary. give any advice or consider and vote at all, mittee and could move these along. Instead, Michigan’s other Senator, Spencer Abra- thereby leaving the courts in limbo, under- he stalled consideration for three years, ham, is also a member of the Judiciary Com- staffed and unable to properly to carry out claiming the Clinton administration mittee, but as a Republican his party con- their responsibilities for years.’’ blindsided him with the White nomination. trols the committee. It’s hard to fathom what that has to do Chief Justice Rehnquist has expressed the I asked Joe Davis, a spokesman for Sen- with the efficient, effective administration same sentiments. ator Abraham, how come it’s taken three Presently three Michigan seats remain of justice in reasonable time, with the best and a half years (in the case of Judge White) open. The President has made two nomina- interests of citizens in Michigan. and eight months (in the case of lawyer tions. Judge Helene White was nominated in The federal court system should not be Lewis) just to get the committee to hold January 1997, and is the longest pending treated this way. Neither should the judges hearings on their nominations. nominee without a hearing by over a year; who seek to serve it, nor the citizens it is Kathleen McCree Lewis was nominated in supposed to serve. According to Davis, ‘‘Senator Abraham September, 1999. Senator Abraham returned does not know whether or when hearings will the ‘‘blue slips’’ for the nominees in April. [From the Michigan Press, June 25, 2000] take place. He wants them to take place, Joe Davis, a spokesman for Senator Abra- IS THE GOP PLAYING POLITICS WITH JUDICIAL though.’’ ham, was quoted as saying that Senator APPOINTMENTS? That’s nice. Frankly, I suspect if Senator Abraham wants hearings for these nominees (By Phil Power) Abraham really wanted the Judiciary Com- to take place. Still, no hearings have been ‘‘The presidential appointments process mittee to hold hearings on these nomina- scheduled. now verges on complete collapse.’’ So con- tions, he’d find a way to do it PDQ. S9664 CONGRESSIONAL RECORD — SENATE October 3, 2000 A member of the Sixth Circuit, Judge Gil- Certainly, there is ample room for dis- have been told is, it is over with. They bert S. Merit, wrote in March a letter to agreement when the legislative and execu- are not going to report any more of Senate Judiciary Chairman Orrin Hatch: tive branches of government are in the hands these nominees out for circuit courts. ‘‘The Founding Fathers certainly intended of different parties. But Mr. Lott’s pique has I have also heard the argument that that the Senate ‘advise’ as to judicial nomi- outlived any reasonable purpose. [It is the nations, i.e., consider, debate and vote up or sort of die-hard intransigence that should be Bonnie Campbell was not nominated down. out of bounds.] until this year so we shouldn’t expect They surely did not intend that the Sen- Mr. LEVIN. I yield the floor and sug- this nominee to go through. Let’s take ate, for partisan or factional reasons, would gest the absence of a quorum. a look at what I am talking about with remain silent and simply refuse to give any these charts. This is kind of a busy advice or consider and vote at all, thereby The PRESIDING OFFICER. Without objection, the time will be equally di- looking chart, but these are the circuit leaving the courts in limbo, under-staffed judges nominated in 1992 by then-Presi- and unable properly to carry out their re- vided. The clerk will call the roll. sponsibilities for years.’’ The legislative clerk proceeded to dent George Bush. These were all nomi- Senator Abraham is running for reelection call the roll. nated in 1992. There were 14 nominated. this fall. Mr. HARKIN. Mr. President, I ask There were 9 who had hearings, 9 who He is stressing his performance as an effec- unanimous consent that the order for were referred, and 9 who were con- tive senator in his campaign. Somebody firmed, 9 out of 14 who were nominated should ask him why he can’t get his com- the quorum call be rescinded. mittee to give two able, thoughtful and well The PRESIDING OFFICER. Without that year. respected Michigan lawyers the courtesy of objection, it is so ordered. There was one nominee—Timothy timely hearings on their nominations to the Mr. HARKIN. Mr. President, par- Lewis—who was nominated in Sep- federal judiciary that is currently ham- liamentary inquiry: I understand this tember of 1992, had his hearing in Sep- strung in carrying out its work. Senator has 30 minutes? tember of 1992, was referred in October The PRESIDING OFFICER. That is of 1992, and confirmed in October of [From the Detroit News, August 13, 2000] correct. 1992. If the attitude that prevails GET JUDGES OUT OF LIMBO Mr. HARKIN. I thank the Chair. among the Republican leadership today Michigan Court of Appeals Judge Helene Mr. President, I will support consid- had prevailed in the Democrat-con- White got the welcome word that she had eration by the Senate of these nomina- trolled Senate in 1992, we would not been appointed to the federal bench in Janu- tions to fill district judge vacancies in ary 1997. have confirmed anyone after July. This That was 43 months, or more than 1,300 Arizona and Illinois because we are en- year, we have had none since July. days ago. She is still waiting to be approved tering a critical stage in the rising In 1992, we had two in September, two by the U.S. Senate and take her seat with number of judicial vacancies in our in August, and one in October, despite the Sixth Circuit appeals court in Cin- Federal courts. However, in addition to the fact that it too was late in an elec- cinnati, which covers Michigan and several the district vacancies, there are 22 va- tion year. This year we have only had other states. She now has the distinction of cancies in our Federal appeals courts, one. being the longest-delayed judicial nominee in American history. and pending before the Judiciary Com- It is clear who is playing politics Judge White has been caught in the cross- mittee are several appeals court nomi- with judgeships. The Republican lead- fire between President Bill Clinton and the nations who are more than qualified to ership of the Senate is playing the Republican Senate leadership. So has Detroit fill those positions. That, of course, in- most baldfaced politics. It is not al- attorney Kathleen McRee Lewis, whose nom- cludes a constituent of mine, Bonnie J. leged that these nominees are not ination to the same court has been held up Campbell, former attorney general of qualified. It is simply that they were for nine months. The Senate is angry, and justifiably so, at the State of Iowa and presently the nominated by a Democratic President. the president for deliberately bypassing the head of the Department of Justice Of- That is all. I have not heard one person confirmation process and appointing Bill fice of Violence Against Women. Her on the Republican side tell me that Lann Lee head of the civil rights division of nomination is for the Eighth Circuit Bonnie Campbell is not qualified to be the Justice Department. President Clinton U.S. Court of Appeals. a circuit court judge. knew that Mr. Lee did not stand a chance of These positions should be filled with Some people on the other side may being confirmed because of the his record in qualified individuals as soon as pos- have some differences with her on some backing racial quotas. Mr. Clinton got around it by the semi-devi- sible. I urge the Republican leadership of her views. I understand that. I have ous route of making a recess appointment. to take the steps necessary to allow had differences of view with judges I This has infuriated Senate Majority Leader the full Senate to vote up or down on have voted to confirm. Why? Because I Trent Lott. In retaliation, he is holding up 37 these important nominations. thought they were qualified. judicial appointments. Basically what I have been hearing I thought that if the President nomi- This is exactly the sort of bitter political from the other side of the aisle, the Re- nated them, they had a fair hearing, obstruction that Texas Gov. George W. Bush publican leadership, is: This is an elec- and they were reported out, my only pledged to end in his convention acceptance speech last week. tion year. Why allow circuit nominees decision was whether or not they were ‘‘I don’t have enemies to fight,’’ he said. ‘‘I a vote on the floor? Hold it up. Maybe qualified—not whether they were ideo- want to change the tone in Washington to Governor Bush will win the election logically opposed to me or to how I feel one of civility and respect.’’ and we will control the Senate and the or what I believe. It has been my obser- Senate Republicans should listen to their House, and we can have a whole new vation over the last quarter century party’s nominee. While their anger is under- batch of appointees next year. that oftentimes when judges who have standable. It is the courts, and by extension That attitude led me to take a look more of a liberal bent get appointed to those who use the federal courts, who are punished because of the resulting shortage of at the history of our judicial nomina- the court, in many cases they come judges. tions. Let’s go back to a time when down on the more conservative side of Sen. Lott hasn’t even scheduled hearings there was a mirror image of what we cases. And I have seen conservative for these nominations. And the clock is tick- have here, when there was a Repub- judges appointed to the court come ing. If no action is taken by Oct. 6, when the lican President in the White House and down on the liberal side of cases. You Senate adjourns, the nominations will die. a Democratic majority in the Senate. never really know how this will come U.S. Sen. Spencer Abraham, the Michigan That year would be 1992. That year, Republican, initially supported the stall by out, but you know whether or not peo- withholding his approval of the nominations then-President George Bush nominated ple are legitimately qualified to serve on the grounds that he was not properly con- fourteen circuit court judges. From on the bench. sulted by the White House. But he has since July through October, the Democrat- So the arguments made that Bonnie been mollified, and he has given his go- controlled Senate confirmed nine of Campbell wasn’t nominated until this ahead. His staff says, however, that he will those judges. This year, a Democratic year—well, as I said, in 1992, we had not push for hearings, which would be within President nominated seven circuit nine circuit court judges confirmed his power as a member of the Judiciary Com- court judges but with a Republican- that were nominated in that year. A mittee. That is for the Democratic nomi- controlled Senate, only one of these couple of these were quite controver- nators to do, his staff argues. Every nominee deserves, at the least, a nominees has been confirmed. We have sial. This year, we have had one con- hearing within a reasonable time frame. Mr. several pending, but we see no action. firmed. We have six more pending for Bush has specifically suggested 60 days. Time is running out. Basically what I the circuit courts. I know my colleague October 3, 2000 CONGRESSIONAL RECORD — SENATE S9665 from Vermont, who is ranking member Bonnie Campbell? Politics, the rankest brought honor and acclaim to that of- on the Judiciary Committee, stated form of politics. fice and the administration of that law, this last week that when a majority in The majority is being very incon- do you think that 415 Members of the the Senate starts playing these kinds sistent in their arguments. They say, House would have voted to reauthorize of games, the result is that when the well, Bonnie Campbell was nominated it? No. They would have been on their other side becomes the majority they this year, so it is too late. Mr. Teilborg feet over there, one after the other, will do the same thing. That is too bad was nominated this year—nominated, talking about how terrible this office for our democratic system of govern- had a hearing, and was reported out all has been run and how the person oper- ment, too bad for the judgeships, and in the same week, and he will be con- ating that office had done such a bad for our third branch of Government to firmed today. If this year was too late job in enforcing the law. Not one Mem- have that happen. for Bonnie Campbell, why wasn’t it too ber of the House took the floor to so I am not naive enough not to know late for James Teilborg? speak. that there are always politics involved As I said, nobody has come up and The one person to head that office is in how judges are nominated. I under- said Bonnie Campbell is not qualified. I Bonnie J. Campbell. Not one person I stand that. That is the system in which challenge someone to come on the floor have ever run across has said she has we live. But there comes a point where and say that. Again, if people want to done anything less than an exemplary politics ends and responsibility begins. vote against Bonnie Campbell to be a job in running that office. Yet the Sen- When you have people who have had a circuit court judge, that is the right of ate Judiciary Committee will not re- hearing, who are qualified, yet they each Senator—not only a right, but an port her name out for action by the full won’t be reported out for a vote on the obligation—if they believe someone is Senate. Yet we will get the Violence Senate floor, that is pure politics and unqualified. We can’t do that as long as Against Women Act here and Senator that is the height of irresponsibility. she is bottled up in the committee. after Senator will rush up to speak The Republican leadership is being to- The Senator from Utah has the power about how great this law is. I will bet tally irresponsible. on that committee to report her out. I you won’t hear one Senator get up and Of the judges nominated in 1992, say to my good friend from Utah, who say how badly this law has been admin- every judge who got a hearing—every just appeared on the floor, the Senator istered by the Office of Violence single judge who had a hearing in a from Utah can report Bonnie Camp- Against Women in the Department of Democrat-controlled Congress, when a bell’s name out here to the floor and Justice. Democrat was the Chair of the Judici- we can have a vote on this nominee. That tells you what an outstanding ary Committee, when the Democrats That is the way it should be done. No- job Bonnie Campbell has done in that controlled the Judiciary Committee, body has come up to me to say she is office. every person who got a hearing was not qualified. She is a former attorney If that is the case, why won’t the confirmed. Every single one. That is general of the State of Iowa. Since 1995, Senate Judiciary Committee report her not the case today. Too many political she has led the implementation of the name out? Politics; pure rank politics. games are being played, I am afraid, on Violence Against Women Act as the That is what is going on in the Judici- ary Committee today. I hope it won’t the Judiciary Committee and on the head of that office under the Justice be that way if the Democrats take other side. Department. She has broad support on I would like to mention one other ju- both sides of the aisle. This is a case charge of the Senate. I am not on the dicial example from 1992. Michael where a judicial nominee has the sup- Judiciary Committee, but we tend to Melloy was nominated for the district port of both the Republican Senator get in what I call a ‘‘cesspool spiral,’’ like a whirlpool. One side takes over court in April of that year. He was a from Iowa, Mr. GRASSLEY, and the Bush nominee, supported by Senator Democratic Senator from Iowa, me. the majority and begins to stall nomi- nations, and then the other side takes GRASSLEY. As my colleagues know, Yet she has not been reported out of over, we keep spiraling down further Senator GRASSLEY and I have a long- the Judiciary Committee. I say report and further to the point where any standing commitment to support the her out. If people want to vote against nominee for a Federal court will be nominations of individuals from Iowa her or say something about her quali- held up months and perhaps even years to our courts. Mr. Melloy is an example fications, let them. while we await the next election. Then of this. He was nominated April 9, 1992, I can stand here today and talk about our third branch of Government truly received his hearing on August 4, 1992, the qualifications of James Teilborg, or the other people; but, quite frankly, becomes a political football. reported out of committee on August I hope the Judiciary Committee and I am convinced they are qualified. I 12, 1992, and confirmed by the Senate the leadership on that side—I say to may be opposed to the way they think that very same day in 1992. my friend from Utah—will listen to the Again, I may have been ideologically once in a while, but they are qualified. words of Texas Governor George Bush. opposed to Mr. Melloy. There may have Is the reason Bonnie Campbell is not He said he would call for a 60-day dead- been some things he believed in that I being reported out because somebody line for judges—once they are nomi- didn’t, but there was no question in my on the other side of the aisle doesn’t nated, the Senate will have 60 days to mind that Mr. Melloy was fully quali- like the way she thinks, or because she hold a hearing, to report out of com- fied to be a Federal judge. As long as may have a view on an issue contrary mittee and vote on the Senate floor. he was qualified and supported by Sen- to theirs? The rankest form of politics Bonnie Campbell has been there a lot ator GRASSLEY and the administration, is holding up Bonnie Campbell’s nomi- longer than 60 days and so have some I supported that nominee, even though nation. We have a backlog of nominees of the other judges. it was in the closing days of 1992. and we should vote on her. I say to my friends on the Republican Let’s look at the current nominees The Violence Against Women Act ex- side—you are supporting George Bush that we have. Three of the four we are pires this year. The Office of Violence for President. If he said he would call going to be voting on today were nomi- Against Women in the Department of for a 60-day deadline, I ask my friends nated, got hearings, and were reported Justice has had only one person head it on the Republican side: Why don’t we out of the committee within one week. since this bill was first implemented in act accordingly? Mr. James Teilborg was nominated on 1995, and that is Bonnie J. Campbell. In this Congress, the judicial nomi- July 21, 2000, got his hearing on July The reauthorization of the Violence nees who have been confirmed had to 25, and was reported out of the com- Against Women Act was voted on in wait on average 211 days. Governor mittee on July 27. Now he stands to be the House of Representatives last Bush said they should not wait longer confirmed today. On the other hand, week. If I am not mistaken, I think the than 60 days. This is not getting better; Bonnie Campbell received a hearing by vote was 415–3. So 415 Members of the it is getting worse around here. It is the Judiciary Committee in May— House voted to reauthorize the Vio- really a shame. more than 2 months before Mr. lence Against Women Act. Now, if the Let’s look at the percentages. I am Teilborg. Yet she is not here on the only person to ever head that office told: This is the same today as it was floor. Why is it that Mr. Teilborg can had done a bad job in enforcing that before—blah, blah, blah, blah. I hear come out on the floor today and not law, had not acted responsibly, had not this all the time—nothing has changed. S9666 CONGRESSIONAL RECORD — SENATE October 3, 2000 It has changed dramatically. For ex- ing those same years, children under Campbell has had the support not just of ample, in the Reagan years, during the the age of 12 lived in 43 percent of the Senator Tom Harkin, but also Senator 98th Congress, the Republicans were in households where this violence oc- Charles Grassley, even though it must stick in Grassley’s craw. Campbell, who ran for the majority. They had a Republican curred. It is generational. The kids see governor of Iowa in 1994 and lost, made re- President. We received 22 circuit court it, they grow up, and they become abu- marks during her race about Christian con- nominations, and 14 were confirmed. sive parents themselves. servatives that riled conservative activists, This is a Republican President and a In Iowa, and all across America, pros- who appealed to Grassley to kill her bid for Republican Senate—22 received, and 14 ecutors, victim service organizations, the bench. That’s fair; whatever you think of confirmed, for a 63.6-percent confirma- and law enforcement officers are fight- the merits of their arguments, it’s their tion rate. ing. But they need help. We need to re- right to protest something as significant as authorize the Violence Against Women a lifetime judicial appointment. Let’s look at the 100th Congress. Grassley declined to side with his tradi- President Reagan was still President, Act. But there is more we can do to tional conservative allies and supported but there was a Democratic Senate. make sure that we have judges who Campbell, saying Democrats did not stand in Twenty-six circuit court judge nomina- know what is happening from firsthand the way he wanted judicial appointments tions were received; 17 were confirmed, experience and who can make sure that during the waning days of the Bush presi- for a 65.4-percent confirmation rate. the law is applied fairly and upheld in dency. While Grassley predicted that Camp- Think about that. Democrats had a courts around the country. bell would fall victim to election-year poli- That is why we need someone like tics, there’s no evidence that he has tried to higher confirmation rate under Presi- sabotage her behind the scenes. dent Reagan—a very conservative Bonnie Campbell on the circuit court Campbell’s nomination hung around all President. We had a higher confirma- of appeals. As I said, she is widely sup- summer, gaining the support of the bar asso- tion rate when the Democrats were in ported. She is supported by me and by ciation and the Iowa Police Association. charge of the Senate than when the Re- Senator GRASSLEY. She has the support When Congress returned to work in Sep- of judges, police organizations, women, tember, Harkin started turning up the heat. publicans were in charge. We didn’t During the past week, he has taken to the block things when the Democrats were and domestic violence coalitions. She has strong support in the State of Iowa floor repeatedly to lambaste majority Re- in charge. publicans for holding up the nomination, and Next, the 102d Congress, 1991–1992. and on both sides of the aisle. he holds forth at length on the Campbell President Bush was the Republican I ask the chairman of the committee: nomination with Iowa reporters. making nominations and the Demo- Why aren’t we reporting out Bonnie This has been a masterful strategy by Har- crats were in charge in the Senate. We Campbell? Why? Just one simple ques- kin, who’s become such a surrogate for Vice President Al Gore that Harkin was paired received 31 circuit court nominations. tion: Why? Is there a member of the majority who thinks she is not quali- with GOP vice-presidential nominee Dick Twenty were confirmed, again, for a Cheney on a Fox News show. Campbell’s 64.5-percent confirmation rate—Repub- fied? Let them so state. Have specific woes only assist Harkin in making the case lican President and a Democratic Sen- objections been raised as to her quali- for a Democratic presidency, over and over ate. fications? If so, we ought to know that again in media outlets across Iowa. Now we move to the 104th Congress. so they can be addressed. But all we On Tuesday night, Harkin enlisted the help of Senator Joe Biden, the Delaware Demo- We had a Democratic President, Presi- hear is a deafening silence from the other side. We are left to assume that crat and Judiciary Committee member who’s dent Clinton, and we had a Republican a friend of Campbell. Harkin and Biden Senate. Twenty circuit court nomina- the reason Bonnie Campbell is being formed a mutual admiration society on the tions were received; 11 were confirmed. held up is because they are hoping floor to praise Campbell, and Biden recalled That was a 55-percent confirmation their nominee wins the election. That that he recommended that Campbell be made rate. is their right to hope that. They can director of the Violence Against Women of- Now we are in the 106th Congress. We work as hard as they can for him. I fice when it was launched. don’t blame them for that. But to hold Biden insisted it was ‘‘flat malarkey’’ that have a Democratic President and a Re- Democrats have held up Republican appoint- publican Senate. Thirty-one circuit up a qualified person like Bonnie ments during the last days of Republican court of appeals nominations have been Campbell who had her hearing 2 presidencies, and said he pushed through a received; 15 have been confirmed, for a months before Mr. Teilborg had his; flock of qualified Texas judges for Senator 48.4-percent confirmation rate. yet she is being locked up in the com- Phil Gramm in late 1992. ‘‘To be fair about it I ask my friend—and he is my mittee—all the paperwork is done. Yet there were three members of our caucus who friend—the chairman of the Judiciary politics is holding her up. ripped me a new ear in the caucus for doing Mr. President, I ask unanimous con- this,’’ said Biden. Committee: How can we live with Harkin said no Republican has ever come something like that? How can the Judi- sent the text of an article that ap- to him and explained their opposition to the ciary Committee come to this Senate peared in the Des Moines Register the nomination. ‘‘In fact, Republicans in Iowa with a straight face and say that a 48- other day regarding the Bonnie Camp- ask me why she is being held up,’’ said Har- percent confirmation rate is what we bell nomination and the text of two kin. ‘‘Mainstream Republicans are asking did in the past, when the record is editorials, one in the Cedar Rapids Ga- me that.’’ zette and one in the Des Moines Reg- Biden said it is a ‘‘terrible precedent,’’ and clear? The record is in the 60-percent that it is hard on Harkin to see someone so confirmation rate when we had Repub- ister, be printed in the RECORD. ‘‘shabbily treated’’ from his home state. You lican Presidents and a Democratic Sen- There being no objection, the mate- hoped there was a box of tissues close at ate. Yet today we are faced with a 48- rial was ordered to be printed in the hand. percent confirmation rate. RECORD, as follows: Then, on Thursday, Harkin revealed to re- [From the Des Moines Register, Oct. 1, 2000] porters that he had been told by Senate Ju- I have heard from many judges. I diciary Committee Chairman Orrin Hatch CAMPBELL ISSUE AIDS DEMOCRATS’ POLITICS have gotten letters from them saying ‘‘in no uncertain terms’’ that the Republican (By Jane Norman) that it is time we filled the bench. caucus won’t budge on the nomination. Har- Cases are backing up. We need to get If Iowa Democrats needed any more reason kin said there’s not much he can do now judges on the bench. But I suppose we to be excited and energized about this year’s other than fume on the floor and ponder first have to pay attention to the elec- presidential race in the state, they probably holding up Republican priorities. have found it in the controversy swirling tions. All of this cater-wauling gives Harkin, and around the stalled nomination of Iowan Iowa Democrats, a huge opportunity to seize This one nominee, Bonnie J. Camp- Bonnie Campbell in the Republican-con- a way to criticize Republicans on the selec- bell, should be reported out if for no trolled U.S. Senate. George W. Bush, hello? tion of judges, an issue where the GOP is other reason than we need people on Campbell, the director of the Violence somewhat vulnerable, particularly among the bench who are sensitive to what is Against Women office for the U.S. Justice women and undecided voters. happening in domestic abuse cases and Department, was nominated in March to be Texas Governor Bush does not sit in the violence against women. Iowa’s new appeals-court judge for the 8th Senate, and he is not the one holding up the In 1998, American women were the Circuit based in St. Louis. She had a spec- stop sign. But his party is doing it, osten- tacularly sedate hearing before the Senate sibly for his benefit. Is it really wise to have victims of 876,000 acts of domestic vio- Judiciary Committee in May, but then the the confirmation of a woman as a judge be- lence. In 5 years—1993 to 1998—domes- nomination process ground to a halt. She’s come a major fuss in a supposedly battle- tic violence accounted for 22 percent of one of 42 judicial nominees pending in the ground state in the last month before the the violent crimes against women. Dur- Senate. presidential election? October 3, 2000 CONGRESSIONAL RECORD — SENATE S9667 On top of that, many Iowa Democrats are on the floor. He is a good man. He and It is very late in the session to be still angry at how Campbell was treated dur- I have fought many battles together. I considering a circuit court nomination. ing her race for governor. The prospect that like him personally and I respect him. Some nominations can move through women such as Campbell will be shut out for If he would like to engage in colloquy, the confirmation process quickly, but another four years if Bush is elected presi- dent is like a booster shot for get-out-the- I will. He knows how strongly I feel only where the White House has dealt vote efforts. about this nominee, about her quali- with the Senate on nominations in Harkin said Thursday that he ‘absolutely’ fications and about the kind of job she good faith. The Arizona nominations would push Campbell to be nominated again has done at the Department of Justice. we are debating today moved through if Gore wins the presidency. For the time I am sure he knows I will do everything the confirmation process quickly be- being, she serves Democrats’ purposes just as that is humanly and senatorially pos- cause the White House did work closely well if she never dons black robes. sible to try to get her name here. I be- with Senator KYL and negotiated in good faith over which Arizonans should [From the Cedar Rapids Gazette, Sept. 26, lieve I have a right and an obligation 2000] to do that. I will, within the confines of get these lifetime appointments. In contrast, the White House has not STOP STALLING ON JUDICIAL CANDIDATE what is right and proper in the Senate, not violating any rules, do everything I dealt with the Senate on nominations In three weeks or less, Congress will ad- in good faith. During our August re- journ before the 2000 elections, and increas- can to try to get her name out. ingly it appears it will do so before the U.S. We will be here this week and we will cess, the President determined to re- Senate brings the nomination of Bonnie be here next week. I ask my friend cess appoint several executive branch Campbell to the U.S. Court of Appeals for from Utah, will we be allowed to have officials over the express objections of the Eighth Circuit up for a vote. a vote on Bonnie Campbell for the numerous Senators. Furthermore, It’s not as if Campbell, the former attorney Eighth Circuit Court of Appeals? Democrats stood in the way of these general of Iowa, is trying to get in at the last I yield the floor. four nominees we are debating today, minute—unless you consider a six-month The PRESIDING OFFICER. The the President’s nominees, and they wait the last minute. Campbell was nomi- threatened to shut down the work of nated to the job by the Clinton Administra- Chair recognizes the Senator from tion in March. She had a hearing in May. Utah. the Senate. This is hardly good faith. What’s taking so long? Mr. HATCH. Mr. President, I will In fact, it was a Democrat hold—a It seems apparent the Republican-con- submit a resolution, and after these re- Democrat hold by the minority leader trolled Senate Judiciary Committee is grow- marks I will spend some time answer- on these four judges who are put forth ing content to hold onto this nomination ing my two dear colleagues, Senator by this President in accordance with until after the session—and, not coinciden- ROBB of Virginia and Senator HARKIN an agreement worked out—that really tally—until after the November election, caused a lot of angst on our side, plus when they hope to win the White House. from Iowa, to the best of my ability. That would mean a Republican would more (The remarks of Mr. HATCH per- the fact that these recess appointments than likely be appointed to the job. taining to the submission of S. Res. 364 that were made without consultation It is not unusual for political parties to try are printed in today’s RECORD under caused a lot of difficulty. Then we have to run out the clock on nominations in the ‘‘Submission of Concurrent and Senate virtually every bill filibustered, even hope the next election will bring them to Resolutions.’’) on the motion to proceed. As a matter power. That does not make it right, and in Mr. HATCH. Mr. President, I must of fact, the H–1B bill, which just passed this case it makes no sense to sit on the respond to the remarks of Senator 96–1, had three filibusters on it, from Campbell nomination. U.S. Sen. Tom Harkin, D-Iowa, is her spon- ROBB and Senator HARKIN. the motion to proceed right on up sor and he pointed out a week ago there are With regard to the nomination of through final passage of 96–1. 22 vacancies on the federal appeals court. Roger L. Gregory, the position for I must respond to some of the things Campbell has the backing of the American which Mr. Gregory has been nominated Senator ROBB said here this morning. Bar Association and the Iowa State Police has been vacant since it was created in He used some pretty incendiary lan- Association. She also has the backing of U.S. 1990. Before nominating Mr. Gregory, guage to imply that the Senate major- Sen. Charles Grassley, R-Iowa, who is also a the President had not even submitted a ity is biased against Mr. Gregory be- member of the Judiciary Committee. Tradi- name to the Senate for this position in cause he is an African American. Sen- tionally, Grassley and Harkin have backed ator ROBB said we ‘‘are standing in the the other’s nominees, and if Campbell’s nom- almost 5 years. Despite the long- ination fails, we would hate to see that un- standing vacancy of this judgeship, the courthouse door’’ and are refusing to derstanding damaged. work of the Fourth Circuit has not ‘‘integrate’’ the Fourth Circuit. These Frustrated proponents of the Campbell been adversely affected. allegations of racial bias are beneath nomination—as well as several other nomi- Moreover, when the President did the dignity of a Senator in the U.S. nations—have been arguing recently that submit a name to the Senate for dis- Senate, and they are offensive and po- over the last three years, women and minor- position almost 5 years ago, he sub- litically motivated. When Democrats ity candidates have had to wait longer to get mitted the name of a resident of North blocked the nomination of Lillian through the confirmation process than their BeVier to the Fourth Circuit—which is white male counterparts. Carolina, J. Rich Leonard. In doing so, The chairman of the Judiciary Committee, the President effectively agreed that what they did—the first female nomi- U.S. Sen. Orrin Hatch, R-Utah, has denied this seat should be filled by a North nee to the Fourth Circuit, no one on women and minorities are being treated dif- Carolinian. our side accused them of gender bias. ferently in the committee than their white The PRESIDING OFFICER. Without I am sure Roger Gregory is a fine male counterparts. Still, of the 21 candidates objection, the Senator’s previous time man. I have no doubt about that. I have for the federal bench who are women or mi- consumed on the Olympics will not been told that by a number of friends norities, nine have been waiting for more count against his 7 minutes. of mine, including former Secretary than a year for a hearing. Coleman. But I have informed my col- Campbell has a lengthy record in private Mr. HATCH. I ask unanimous consent legal practice. Elected in 1990, she was the I be able to speak for another 15 min- leagues that because of the atmosphere first woman to serve as Iowa Attorney Gen- utes. that has resulted from the President’s eral. She was appointed in 1995 to be the di- The PRESIDING OFFICER. Without refusal to consult with the Senators rector of the Violence Against Women Office objection, it is so ordered. from North Carolina, because of the in the U.S. Justice Department. Her hearing Mr. HATCH. The President effec- President’s recent recess appointments revealed no good reason why she should be tively agreed this seat should be filled and disregard of commitments he had denied this position. by a North Carolinian. By nominating made up here, and disregard of the ad- The Senate leadership should do the right thing in the waning days of this session and Roger Gregory, a Virginian, for the vice and consent because of the petty let the full Senate vote on Campbell. It seat instead of a North Carolinian, the parliamentary games in which our should set aside whatever reason it has for President sought to avoid the tradi- friends on the other side have engaged, stalling and move forward. Let the process tional practice of seeking the ‘‘advice Mr. Gregory’s nomination is not going work and bring this nomination to the floor and consent’’ of the Senators from the to move forward. And because this is a for a vote. State where the judgeship is located North Carolina seat. We would have to Mr. HARKIN. I see the distinguished about which local lawyer should be have somebody nuts, from North Caro- chairman of the Judiciary Committee nominated. lina, who would not stand up for a S9668 CONGRESSIONAL RECORD — SENATE October 3, 2000 North Carolinian in this seat. There is Arizona to have these judges. There is Democrat-controlled Senate confirmed just no question about it. The Presi- a tremendous court docket there that 41 nominees. After the votes today, the dent knew that, having nominated a needs these judges. Yet they have been Senate this year will have confirmed 39 North Carolinian before. delayed for 2 solid months almost. nominees. And there have been some I would like to respond to Senator In contrast, the White House and indications there might be some games LEVIN for a few minutes. I don’t want Senate Democrats have not dealt in played with one of the four judges here to go beyond that. There are other good faith, given the President’s recess today. If that is the case, boy, Katie things I could say. But I bitterly resent appointments in August of several ex- bar the door, after what we have been anybody trying to play racial politics ecutive branch nominees over the ex- trying to do here. with judges, especially after what we press objection of numerous Senators The committee worked sincerely to went through in prior administrations. and Senate Democrats’ efforts to hold try to get these nominations out, and It had always been my intention as up these nominees and hold up the they have been here for quite a while. chairman of the Judiciary Committee work of the Senate. Finally, few nominees are confirmed to hold a hearing on judicial nomina- With regard to the nomination of when the White House and Senate are tions during the month of September. I Bonnie J. Campbell, in March, Bonnie controlled by different political par- planned on doing that. At that hearing Campbell was nominated to the U.S. ties. From 1987 to 1992, the Democrat- I was fully prepared to consider the Court of Appeals for the Eighth Cir- controlled Senate confirmed an aver- nomination of some of these people, cuit. At the urging of Senator GRASS- age of 46 Reagan and Bush nominees and perhaps even Helene White or LEY, the Judiciary Committee held a per year. Things changed when Presi- Kathleen McCree Lewis to the U.S. hearing for Ms. Campbell in May. It dent Clinton was elected. In 1994, the Court of Appeals for the Sixth Circuit. had always been my intention for the Democrat-controlled Senate pushed A number of my colleagues were press- Judiciary Committee to report Ms. through 100 Clinton nominees. They ing very strongly for that. I wanted to Campbell’s nomination. However, could not have done that without co- try to resolve that if I could. events conspired to prevent that from operation from Republicans, but they However, events conspired to prevent happening. did that. that from happening. First, during the First, during the August recess, as I In 1992, at the end of the Bush admin- August recess, the President deter- have explained, the President deter- istration when Democrats controlled mined to recess appoint several execu- mined to recess appoint several execu- the Senate, the vacancy rate stood at tive branch nominees over the express tive branch nominees over the express 11.5 percent. Now at the end of the objection of numerous Senators. He did objection of numerous Senators. He did Clinton administration the vacancy so notwithstanding the agreement to so notwithstanding his agreement to rate after the votes today will stand at clear such recess appointments with clear such recess appointments with just 7.4 percent. the relevant Senators. We do not have the relevant Senators. By the way, this Also in 1992, Congress adjourned much power around here in some ways type of an agreement arose out of Sen- without having acted on 53 Bush nomi- against a President of the United ator BYRD’s objections in earlier Con- nations, or should I say nominees who States, but we can demand that he con- gresses. His objections were followed were sitting there waiting to be con- sult with us. These Senators are very here on the part of people on our side firmed. After the votes today, there aggrieved by the way they were treated of the aisle, and the President agreed will be only 38 Clinton nominations on these appointments—I think rightly to it and then violated that agreement. that are pending. so. Second, after the August recess, Under both Democrats and Repub- Second, Democrat Senators deter- Democrat Senators determined to licans, the Senate historically con- mined to place holds on the four nomi- place holds on the four nominations we firms 65 to 70 percent of the President’s nations we are debating today and are debating today, even though every- nominees. In his last 2 years, President threatened shutdowns of the Senate’s body admits—I think everybody admits Bush made 176 nominations, and the committee work, going as far as to in- —that they are important nominations Democrat-controlled Senate confirmed voke the 2-hour rule and forcing the and this arrangement that has been 122 of them, yielding a confirmation postponement of scheduled committee worked out has been fair. rate of 69 percent. During the last 2 hearings, including the Wen Ho Lee Again, they threatened to shut down years, President Clinton made 112 hearing, which is an important hear- the Senate’s committee work, going as nominations, and after today’s votes, ing, a bipartisan hearing, for both sides far as to invoke the 2-hour rule and en- the Senate will have confirmed 73 of to look at. force the postponement of scheduled them. He has a confirmation rate of al- Helene White and Kathleen McCree committee hearings. And we went most the same, 65 percent. Lewis have only the White House and through that because of pique. For In May, at a Judiciary Committee Senate Democrats to blame for the cur- these reasons, Bonnie Campbell’s nomi- hearing, Senator BIDEN indicated he rent situation, I might add, because of nation has stalled. Ms. Campbell has did not believe we would do even 30 some of these petty procedural games only the White House and Senate judges this year. He is wrong. We will we have been going through around Democrats to blame for the current sit- have now done, at the end of the day, 39 here with filibusters of almost every- uation. judicial nominees confirmed by the thing that comes up, or a threat to I might add, it did not help at all on Senate. bring up all kinds of extraneous our side for these petty filibusters on There has been much debate today amendments if we do happen to bring a everything. It used to be when I got about everything but the four nomi- bill up that needs to be passed. here, there might be one or two or nees we ostensibly are debating. I fully It is very late in the session to be three filibusters a year at the very support these nominees and want to considering a circuit court nomination. most, and then they were on monu- say a few words about them. They are Some nominations can move through mental issues that involved a wide dis- supported by their home State Sen- the confirmation process quickly, but parity of belief. It was not every little ators—Senators KYL, MCCAIN, FITZ- only where the White House has dealt motion to proceed, every little bill we GERALD, and DURBIN. with the Senate, on nominations, in were going to pass, like the one we just The nominees we are supposedly de- good faith. The Arizona nominations passed 96–1. To go through three fili- bating today are as follows: Susan we are debating today moved through buster cloture votes on that bill was Ritchie Bolton from Arizona: Ms. the confirmation process quickly be- beyond belief. But that irritated a lot Bolton has served as judge in the Mari- cause the White House worked closely of people. It made it more difficult to copa County Superior Court since 1989. with Senator KYL and others, and my- get these judges through. Before that, from 1977–89, she worked self, and negotiated in good faith over Mr. HARKIN, the Senator from Iowa, in private practice at a Phoenix law which Arizonans should get these life- claimed that his review of history led firm. From 1975–77, she clerked for the time appointments. him to believe we are ‘‘playing politics Hon. Laurance T. Wren of the Arizona Everybody knows there is a tremen- with the judges.’’ I strongly disagree. Court of Appeals. Ms. Bolton received dous need along the southern border in In President Reagan’s last year, the her law degree, with high distinction, October 3, 2000 CONGRESSIONAL RECORD — SENATE S9669 from the University of Iowa Law That was 382 judges. By the end of the distinguished Members of the Senate— School in 1975, and her undergraduate day, when we confirm these 4, Presi- one a Republican, one a Democrat, degree, with honors, from the Univer- dent Clinton will have the all-time sec- JOHN WARNER and CHUCK ROBB— sity of Iowa in 1973. ond highest, as far as I know, and that worked very closely with the White Mary H. Murguia: Since 1998, Ms. is 377 judges, 5 fewer than President House on this Virginia nomination and Murguia has served in the Executive Reagan. Had we not had all these both support the nomination of Roger Office of U.S. Attorneys, first as Coun- games played, I believe I could have Gregory. sel and then as Director. Before that held a hearing in September, which I Senator ROBB strongly urged the she served as an Assistant U.S. Attor- no longer can hold, and we would have White House to appoint Roger Gregory, ney in the District of Arizona from confirmed probably enough to draw a highly distinguished African Amer- 1990–98. From 1985–90, she was an As- President Clinton equal to President ican. Senator WARNER supports him. sistant District Attorney in Wyandotte Reagan. He has the highest ratings possible Country, Kansas. She received her law The PRESIDING OFFICER. The time from bar associations. But he cannot degree from the University of Kansas of the Senator has expired. get confirmed by the Senate; he cannot Law School in 1985, and her under- Mr. HATCH. I reserve the remainder even get a hearing. graduate degree from the University of of my time. I commend what Senator ROBB said Kansas in 1982. The PRESIDING OFFICER. The Sen- on the floor today in support of Roger Michael J. Reagan: Mr. Reagan has ator from Vermont. Gregory. I hope all of us will listen to worked in private practice since grad- Mr. LEAHY. Mr. President, I have him. uating from law school in 1980; since been scarcely able to hold back the Likewise, I was struck by the re- 1995, he has been a sole practitioner at tears listening to my good friend from marks of Senator DURBIN of Illinois the Law Office of Michael J. Reagan. In Utah. I am sure he did not mean to with respect to the Supreme Court and addition, he has served as an Assistant mislead the Senate, but those who his support for Michael Reagan to a Public Defender (part time) since 1995. might not know the numbers could be district court judgeship in Illinois. He received his law degree from St. misled, not by any intent on the part Senator DURBIN laid out what I have Louis University Law School in 1980, of the senior Senator from Utah. also heard from Republicans and Demo- and his undergraduate degree from As he has said himself, we will have crats who support Michael Reagan for Bradley University in 1976. confirmed fewer than 40 judges in the that judgeship. Democrats and Repub- James A. Teilborg: Mr. Teilborg has last year of President Clinton’s term in licans were at hearings for him. Demo- been a partner at the Phoenix law firm office. When the Democrats controlled crats and Republicans, ranging across of Teilborg Sanders & Parks since 1972; the Senate, in the last year of Presi- the political spectrum, have spoken to before that he was an associate at an- dent Bush’s term in office, we con- me in support of Michael Reagan. He is other Phoenix firm from 1967–72. He re- firmed 66. In fact, we were holding supported by both home state Sen- ceived his law degree from the Univer- hearings right into September and vot- ators, one a Republican and one a Dem- sity of Arizona School of Law in 1966. ing on judges up to the last days of the ocrat. Some have complained the Arizona session, confirming judges for Presi- Senator CARL LEVIN, the distin- nominations have moved more quickly dent Bush. guished senior Senator from Michigan, while others have not. Some nomina- The distinguished Senator from Utah one of the most respected voices in this tions can move through the confirma- feels perhaps some have suggested in- body, spoke of his support for Judge tion process quickly, there is no ques- appropriately that women, minorities, Helene White to the Sixth Circuit and tion about that, but only where the and others take longer going through Kathleen McCree Lewis to the Sixth White House has dealt with the Senate this body. I point out that the ones Circuit and how he wished they would on nominations in good faith. The Ari- who suggested that have been inde- be considered. They have been held up zona nominations we are debating pendent bipartisan groups outside the and blocked by this Senate. Is the today moved through the confirmation Senate. chairman saying that Judge Helene process quickly because the White I have stated over and over, I have White and Kathleen McCree Lewis do House worked closely with Senator never seen or heard a statement ex- not have the support of their two Sen- KYL and negotiated in good faith over pressing—I wonder if the Senator from ators from Michigan? If that is the which Arizonans should get these life- Utah can stay while I speak; I do not case, we ought to know that. I under- time appointments. want to say this with him off the stand that they both have that sup- All four are Democrats, all four are floor—I have never once heard him ex- port. If they don’t have the support of supported by the President, all four press either a racist or a sexist remark. a home state Senator, then let’s say came through the appropriate com- He has been a close and dear friend of that. Judge Helene White and Kathleen mittee—the Judiciary Committee—and mine for over 20 years. Nor have I ever McCree Lewis are extraordinarily well- all four will be voted on today, and I suggested that anybody on the Senate qualified women. I wish they would get expect all four to be confirmed unani- Judiciary Committee has taken a rac- confirmed. mously. If there are no politics played, ist or sexist position, but I am trou- Senator TOM HARKIN, was an extraor- they will be confirmed unanimously. bled, as I hope he and others would be dinary advocate for Bonnie Campbell. I In contrast, the White House and troubled, by the fact that women and can’t add to what he has said. Senator Senate Democrats have not dealt in minorities, if they are nominated for HARKIN spoke extremely well about good faith, given the President’s recess judgeships, have taken longer to go Bonnie Campbell and, of course, Bonnie appointments in August of several ex- through this Republican-controlled Campbell should be confirmed. Again, ecutive branch nominees over the ex- Senate than others if they are allowed going to the test: Did the President press objection of numerous Senators to go through at all. work with the Senators from that and Senate Democrats’ efforts to hold We talk about Roger Gregory, nomi- State. Are we saying that the two Sen- up these nominees and obstruct the nated to the Fourth Circuit. It has ators from Iowa do not support Bonnie work of the Senate—the filibusters been suggested this is a seat that is re- Campbell? My understanding is both of that have occurred on almost every- served to North Carolina. That is not them support her. Why can’t she get thing that comes up here and, of so. As pointed out in the Wall Street Committee consideration and a Senate course, the holds that have been placed Journal in a recent letter from the vote? on these four nominees who are Presi- President’s Counsel Beth Nolan, this is The Senate will move forward on a dent Clinton’s nominees. It does not a vacant seat that has not been allo- number of nominees today: Michael take long until people on our side know cated to the State of North Carolina Reagan, Susan Ritchie Bolton, Mary there are too many games being played and is appropriate for an appointment Helen Murguia, and James Teilborg. I on judicial nominees. from Virginia. The distinguished chair- recommend that all four be confirmed We have done a good job. President man of the committee has said that by the Senate. It is unfortunate that Reagan had the all-time highest con- Senators should work with the White this Republican-controlled Senate, is firmation of judges during his 8 years. House. In this case, two of the most not willing to do for President Bill S9670 CONGRESSIONAL RECORD — SENATE October 3, 2000 Clinton what a Democratic-controlled in 1976, and St. Louis University Law I heard Senator HATCH argue last Senate did for President George Bush, School in 1980. He has been in private week that the vacancies on the federal and move people forward. We can talk practice for over 20 years, and has been judiciary are ‘‘less than zero’’. While I about the numbers that various Presi- an adjunct professor of law at Belle- marvel at the audacity of such argu- dents have appointed. Recent Presi- ville Area College and St. Louis Uni- ment, it moves us no closing to ful- dents have appointed more judges than versity. He also presently serves as an filling our constitutional responsibil- George Washington did or Thomas Jef- Assistant Public Defender in St. Clair ities to the federal judiciary. Likewise ferson or Abraham Lincoln or Teddy County, Illinois. He enjoys the support the notion that the refusal by some to Roosevelt. But we are also a much big- of both of his home state Senators. waive the Senate’s 2-hour rule in late ger country, and we have a lot more When other nominees to the Illinois September somehow preventing the cases and need more judges. In fact, if federal courts were given hearings and Committee from holding additional we passed the judgeship bill the distin- confirmed in June, he was held back. confirmation hearings in early Sep- guished senior Senator from Utah and I He had likewise been nominated in tember or now is hardly compelling. I have introduced, the vacancy rate early May. He was finally included in a wish the Committee and the Senate would be well into the teens with over hearing in late July and reported would have followed the model estab- 130 vacancies. unanimously by the Judiciary Com- lished in 1992 and continued holding We have waited 10 years to authorize mittee on July 27. He could have been hearings and reporting judicial nomi- new judges, even as this country has confirmed before the August recess or nees in August and September. That expanded over the years and caseloads at any time in September. I am glad simply did not happen and despite my have grown. The Judicial Conference is that time has finally come. requests no additional hearings were asking us to authorize 70 judges. In Judge Susan Ritchie Bolton has pre- held. This year we held about half as fact, I strongly urge we pass the judge- sided in the Arizona Superior Court for many hearings as in 1992. Despite all of ship bill before the Presidential elec- Maricopa County since 1989. She re- our efforts we have been unable to get tion while no one knows who is going ceived her undergraduate degree and the Judiciary Committee to consider to be elected President, and we are law degree from the University of Iowa. the nominations of Bonnie Campbell or looking at what is best for our court Following law school she clerked for Allen Snyder or Fred Woocher fol- system. the Honorable Laurence T. Wren on the lowing their hearings. I am glad to see the Senate moving Arizona Court of Appeals. She then The debate on judicial nominations forward on these three nominees. I ex- went into private practice at Shimmel, over the last several years has included pect they will be approved overwhelm- Hill, Bishop & Bruender. She enjoys too much delay with respect to too ingly. They are all well qualified for the support of both of her home state many nominations. The most promi- appointment to the federal courts. Senators and received a well-qualified nent current examples of that treat- Three judicial nominees on the Sen- rating from the American Bar Associa- ment are Judge Helene White, Bonnie ate calendar have been cleared by tion. She was nominated on July 21, Campbell, Roger Gregory, and Enrique Democrats for action for some time, in- participated in a confirmation hearing Moreno. With respect to these nomina- cluding two from Arizona and one from on July 25 and was unanimously re- tions, the Senate has for too long re- Illinois who has been pending the long- ported by the Judiciary committee on fused to do its constitutional duty and est of the four. July 27. She could have been confirmed vote. Nominees deserve to be treated There were Senators who wanted to before the August recess or at any time with dignity and dispatch—not delayed be heard and have a chance to debate in September. I am glad the Senate is for two or three or four years. The the lack of hearings and the refusal to turning its attention to her nomina- nomination of Judge White has now give hearings to qualified nominees. tion and am confident that she will be been pending for over four years, the They have spoken eloquently on behalf confirmed to fill the judicial emer- longest pending nomination without a of Roger Gregory, Bonnie Campbell and gency vacancy for which she was nomi- hearing in Senate history. Judge Helene White. They are not nated. Of course it is every Senator’s right seeking to filibuster these nominations Mary Murguia currently serves as Di- to vote as he or she sees fit on all mat- and each has agreed to a reasonable rector of the Executive Office for U.S. ters. But I would hope that in the cases time for debate before a vote. Attorneys. She also serves as an Assist- of these long-pending nominations, The Senator from Arizona is right ant U.S. Attorney for the District of those who have opposed them will show that there has been a problem with the Arizona. Prior to that, she served as an them the courtesy of using this time to nomination of James Teilborg, who Assistant District Attorney for the discuss with us any concerns they may happens to be a close personal friend of Wyandotte County District Attorney’s have and to explain the basis for their the Senator since their days together Office. She earned her undergraduate anonymous holds and the Senate’s re- back at the University of Arizona Law and law degrees from the University of fusals to act. School. Mr. Teilborg was nominated on Kansas. She enjoys the full support of It was only a couple of years ago July 21 and was afforded a hearing and both of her home state Senators. Like when the Chief Justice of the United was reported by the Judiciary Com- Judge Bolton, she was nominated on States chastised this Senate for refus- mittee within a week. July 21, received a hearing on July 25 ing to vote up or down on judicial The frustration that many Senators and was unanimously reported by the nominations after a reasonable period feel with the lack of attention the Judiciary Committee on July 27. She for review. Committee has shown long-pending ju- could have been confirmed before the This Senate continues to reject his dicial nominees has recently boiled August recess or at any time in Sep- wisdom and, in my view, our duty. over. They wish to be heard; they seek tember. I know that the Senate will It is my hope the Senate will confirm parity and similar treatment for nomi- now do the right thing and confirm her all four district court nominees on the nees they support. I understand their to fill the judicial emergency vacancy Senate calendar. I know there are Sen- frustration and have been urging ac- for which she was nominated. ators who want a chance to debate the tion for some time. This could all have I thank the Majority Leader and lack of hearings and the refusal to give been easily avoided if we were con- commend the Democratic Leader for hearings to qualified nominees. I un- tinuing to move judicial nominations scheduling the consideration of these derstand that frustration, and it is jus- like Democrats did in 1992, when we judicial nominations. I wish there were tifiable, especially as it is not the way held hearings in September and con- many more being considered to fill the the Democrats acted when they con- firmed 66 judges that presidential elec- 67 current vacancies and eight on the trolled the Senate with a Republican tion year. horizon. I wish that we were making President. Michael Reagan, nominated to be a progress on the Hatch-Leahy Federal The nominee from Illinois should District Court Judge for the Southern Judgeship Act of 2000, S. 3071, and au- have been confirmed some time ago. District of Illinois, is a distinguished thorizing the 70 judgeships affected by The nominees from Arizona have private attorney in Belleville, Illinois. that legislation as requested by the Ju- zipped through here faster than the Re- He graduated from Bradley University dicial Conference. publican leadership has allowed most October 3, 2000 CONGRESSIONAL RECORD — SENATE S9671 judges to go through. When Senators Mr. LEAHY. Then I yield the floor WARDS, without losing my right to the supporting nominations, received and withhold the remainder of my floor. months and years before, see newer time. The PRESIDING OFFICER. Without nominees zip through, they are, of The PRESIDING OFFICER. The Sen- objection, it is so ordered. course, frustrated. ator’s time has expired. The Senator from North Carolina is The Judiciary Committee has re- Mr. LEAHY. Mr. President, I believe recognized. ported only three nominees to the I also have an hour under another part Mr. EDWARDS. Mr. President, I am court of appeals all year. We have held of the unanimous consent agreement. pleased that today we are discussing hearings without even including a The PRESIDING OFFICER. The Sen- some of the vacancies that exist in the nominee to the court of appeals. We ator is correct. Federal judiciary. There was a discus- have denied a committee vote to two Mr. LEAHY. I will withhold that and sion this morning about an issue that outstanding nominees who have suc- yield the floor. is near and dear to my heart and im- ceeded in getting hearings; namely, f portant to the folks in North Carolina, Bonnie Campbell and Allen Snyder. which is the vacancies on the U.S. You have to understand the frustration RECESS Court of Appeals for the Fourth Cir- of Senators and those outside the Sen- The PRESIDING OFFICER. Under cuit. ate who know that Roger Gregory and the previous order, the Senate will now Senator ROBB came down and dis- Helene White and Bonnie Campbell and stand in recess until the hour of 2:15 cussed Judge Gregory’s nomination. Kathleen McCree Lewis and others p.m. Chairman HATCH responded. I would should have been considered by the Ju- like to say a few words about that dis- diciary Committee and voted on by the Thereupon, the Senate, at 12:31 p.m., recessed until 2:15 p.m.; whereupon, the cussion. Senate. There are 15 authorized judgeships on On September 14, Senators BARBARA Senate reassembled when called to order by the Presiding Officer (Mr. the Fourth Circuit Court of Appeals. MIKULSKI, BARBARA BOXER, BLANCHE There are presently only 10 active INHOFE). LINCOLN, TOM HARKIN, and CARL LEVIN judges on that court. By tradition, my and Representative CAROLYN MALONEY f State of North Carolina, which is the from the other body, highlighted the EXECUTIVE SESSION—Continued largest, most populous State in the Senate’s failure to act on judicial Fourth Circuit, is allocated three of nominations to the Federal bench. The PRESIDING OFFICER. The Sen- those judgeships. Out of those 10 judge- They called on the Senate leadership to ator from Vermont is recognized. ships —presently active judges on the consider qualified women before the Mr. LEAHY. Mr. President, the Sen- Fourth Circuit—how many come from Congress adjourned. They also dis- ator from Vermont has used one part of North Carolina? None. cussed the problems of judicial emer- his time under the unanimous consent We are the only State in the nation gencies, the length of time it takes agreement, but I understand I have that is not represented on a Federal women and people of color to be con- other time under the agreement. How circuit court, along with Hawaii. We firmed, and how the Federal courts do much time is available to the Senator are the largest State in the circuit. We not currently reflect the diversity of from Vermont? have the largest population in the cir- our country. I do not recall them or The PRESIDING OFFICER. On the cuit, and we don’t have a judge rep- anybody else ascribing motives to Teilborg nomination, 1 hour is avail- resenting our State on this court. That those who are holding up these people. able to the Senator from Vermont. has been true since Judge Ervin died in Rather, they were saying in a diverse Mr. KYL. Mr. President, I suggest to 1999. country such as ours, the Federal court my colleague that we complete the The people of North Carolina, who should reflect the diversity of our time on the three pending nominees. I have cases regularly heard in the country. could yield back the time that remains Fourth Circuit, have no one there rep- They focused on the following women on them. Then I will be happy to allow who have been waiting more than 60 resenting them. In addition, to the ex- Senator LEAHY to conclude his remarks tent the court is regularly interpreting days for confirmation: Helene White, on the time he has under the Teilborg U.S. Court of Appeals for the Sixth Cir- matters of North Carolina law, which nomination, and then I can comment it is required to do in diversity cases, cuit, has been pending more than 1,360 with respect to that nomination. days; Kathleen McCree Lewis, U.S. there is no judge in this court who is I yield back all time remaining on trained in North Carolina law. Now, Court of Appeals for the Sixth Circuit, the three judicial nominations. has been pending more than 370 days; this Congress recognized some time ago Bonnie Campbell, U.S. Court of Appeals f how important it was for States to be represented on their circuit courts of for the Eighth Circuit, has been pend- NOMINATION OF JAMES A. ing more than 215 days; Elena Kagen, appeal by enacting a law—in fact, re- TEILBORG, OF ARIZONA, TO BE quiring that States have a judge on U.S. Court of Appeals for the District UNITED STATES DISTRICT of Columbia, has been pending for more their Federal circuit court of appeals. JUDGE FOR THE DISTRICT OF We have none. As I indicated before, than 480 days; Lynette Norton, U.S. ARIZONA District Court for the Western District along with Hawaii, we are the only two of Pennsylvania, has been pending The assistant legislative clerk read States in the country that are not rep- more than 890 days; Patricia Coan, U.S. the nomination of James A. Teilborg, resented on our circuit court of ap- District Court for the District of Colo- of Arizona, to be U.S. District Judge peals. rado, has been pending more than 500 for the District of Arizona. Now, Chairman HATCH had some dis- days; Dolly Gee, U.S. District Court for Mr. LEAHY. Mr. President, I under- cussion this morning about Judge the Central District of California, has stand that under the prior unanimous Gregory and his nomination to the been pending more than 495 days; consent agreement the distinguished Fourth Circuit in the State of Virginia, Rhonda Fields, U.S. District Court for Senator from Utah, Mr. HATCH; the and the fact that that was a slot tradi- the District of Columbia, has been Senator from Arizona, Mr. KYL; and I tionally allocated to my State of North pending more than 325 days; and Linda each have 1 hour for the Teilborg nomi- Carolina. Riegle, U.S. District Court for the Dis- nation, and the distinguished Senator My question to Chairman HATCH is: trict of Nevada, has been pending more from Iowa, Mr. HARKIN, has up to 3 What are we doing about the nomina- than 165 days. That is why these Sen- hours, unless time is yielded back, is tion of Judge Wynn? Judge Wynn is a ators and this Member of Congress that correct? very well-respected, very moderate, made the statement we did. The PRESIDING OFFICER. That is centrist jurist from North Carolina, Mr. President, am I correct in under- correct. who has been nominated for over a standing that under the previous order, Mr. LEAHY. Mr. President, I ask year from my State to fill a vacancy we are to recess at 12:30? unanimous consent that I be able to that is traditionally allocated to North The PRESIDING OFFICER. The Sen- yield 5 minutes to the distinguished Carolina. There is no question that ator is correct. Senator from North Carolina, Mr. ED- Judge Wynn would be approved by this S9672 CONGRESSIONAL RECORD — SENATE October 3, 2000 body if he ever got a hearing and a vote Mr. EDWARDS. I ask unanimous on both sides of the aisle should listen on the floor. consent for another 3 minutes. to what he said. Unfortunately, that has not hap- Mr. LEAHY. Mr. President, I yield He is not a Senator who speaks in the pened. It is easy to understand why the another 3 minutes without losing my abstract and who simply reads a state- Clinton administration believed they right to the floor. ment on this. This is a Senator who has needed to take some action. That ac- The PRESIDING OFFICER. Is there spent time in the courts of his State tion has turned out to be to nominate objection? and of the region. He has had active Judge Gregory. I have to admit it was Without objection, it is so ordered. practice in both State courts and Fed- somewhat frustrating to me, rep- Mr. EDWARDS. Mr. President, here eral courts. He understands the judicial resenting North Carolina, to have we have the chief judge, who is a Re- system. Judge Gregory nominated for the slot publican-nominated judge, and a court He has argued cases at all levels. He he was nominated for because it was that now has a majority of Republican has worked with lawyers who have traditionally allocated to North Caro- judges. You can certainly make the ar- been on his side of an issue and opposed lina. But, I do support Judge Gregory’s gument that he likes the composition to him. He knows, as does any lawyer nomination. of the court the way it is; he never who practices law, that no matter how In addition to having no judge from wants that to be changed. much you might try a case at the trial North Carolina being on the Fourth That is so fundamentally wrong and level, at some point, especially if the Circuit Court of Appeals, our court so fundamentally different from the stakes are high, that case is going to does not presently have, nor has it ever way our Constitution provides. We go up on appeal. It is going to go up on had, an African American judge. The should be nominating judges. Whether appeal whether you are the plaintiff or Fourth Circuit Court of Appeals has it is a Democratic or a Republican ad- the defendant. Whoever loses that case, the largest African American popu- ministration, it shouldn’t make any if it is of significance, will take it up lation in the country and does not now difference in nominating well-qualified on appeal. have, nor has it ever had, an African judges. This body should act on the I recall the statements made in court American judge. Obviously, there is a qualification of those men and women when I was trying cases. The judge in huge part of our population in the to serve on the court, not based upon chambers would say: OK, we will take Fourth Circuit that has never been rep- the Republican or Democratic composi- it to the jury and let justice be done. resented on this court. They are enti- tion of the court. It is just that simple. Usually the person who had the weaker tled to representation by a well-quali- This should be totally nonpartisan. case said: If that is the case, I will ap- fied judge. My State has no one representing peal, if justice is done. In fact, Judge Wynn who was nomi- them on the Fourth Circuit. There is But the fact of matter is cases be- nated over a year ago—from my State not, nor has there ever been, an Afri- come more and more complex and more that has no judge on the Fourth Cir- can American judge on this court. and more significant to the litigants cuit—is also an African American The simple bottom line is that we and to the issues of law. They go up on judge. I urge Chairman HATCH to grant have the responsibility of deciding how appeal, and you ought to have a good Judge Wynn a hearing and to push for- many judges should be authorized for appellate court. ward his vote on the floor of this Sen- that court. We have made that deci- I commend the Senator for what he ate where he will be approved. sion—15. It is now down to 10. Of those has said. I hope we will listen to what The bottom line is that Judge Greg- 10, North Carolina has none. The people is needed in that appellate court. ory is a well-respected and well-quali- of North Carolina are entitled to be We should also note, I suggest, that fied African American lawyer from the represented on this court. there is going to be a significant debate State of Virginia who also deserves a In addition to that, we should deal tonight in Boston between the two can- hearing, and also deserves a vote in with the issue that there has never didates of our two great parties—the this body this year. been an African American judge on this Republican and Democratic Parties. The argument that is made—and court. Both parties have nominated those we Chairman HATCH made it this morn- We presently have pending the nomi- consider to be our best choices. Obvi- ing—is we only need 10 judges on the nation of two well-respected and very ously, I strongly support my friend of Fourth Circuit, we don’t really need well qualified African American ju- over 20 years, AL GORE. But I also the 15 that Congress in fact has author- rists. know that the Republican Party has ized. The reason is that the chief judge This is what I would say to the Chair- nominated a very distinguished Gov- of that circuit, Judge Wilkinson, says man HATCH. Let us have a hearing on ernor, George W. Bush. they do not need any more judges, they Judge Wynn. Let Judge Wynn have a I mention this because Governor are operating perfectly efficiently. vote on the floor of this Senate, and let Bush and I, while we disagree on some I point out several things. the people of North Carolina have issues, have one very significant issue No. 1, the Fourth Circuit issues more what, by law enacted by this body, on which we agree. He gave a speech one-sentence opinions than any Fed- they are entitled to, which is a judge awhile back and criticized what has eral circuit court in the country. Liti- representing them on their Federal happened in the Senate where con- gants come before it and make their court of appeals so that when my peo- firmations are held up not because case. Instead of getting a reasoned de- ple go to the Fourth Circuit Court of somebody votes down a nominee but cision about why they won or lost their Appeals to have their case heard, they because they cannot ever get a vote. case, they get one sentence. What does have at least one judge representing Governor Bush said: You have the that tell them about how much atten- them on that court. Aren’t they enti- nominee. Hold the hearing. Then, with- tion in fact is being paid to their case? tled to that? in 60 days, vote them up or vote them This same argument was made when I yield the floor. down. Don’t leave them in limbo. there were 13 judges on the court. Now Mr. LEAHY. Mr. President, I com- Frankly, that is what we are paid to we are down to l0. mend the distinguished Senator from do in this body. We are paid to vote ei- Since when do we let the chief judge North Carolina for his comments. Sen- ther yes or no—not vote maybe. of the circuit court decide how many ator EDWARDS has been a friend since When we hold a nominee up by not judges go on the court? That is a func- he came to this body. I have, at the allowing them a vote and not taking tion we in Congress have responsibility risk of embarrassing him, stated on a any action one way or the other, we are for—not him. number of occasions on this floor that not only voting ‘‘maybe’’ but we are You can certainly make an argument the Senate was enhanced by his pres- doing a terrible disservice to the man that this is a partisan decision that the ence here. As a lawyer, I must say that or woman to whom we do this. They chief judge has made—that he likes the having him here because of his own ex- have to put their life on hold. They do present composition of the court. He perience as one of the most out- not know what is going to happen: Are was a Republican-nominated judge. standing and most recognized trial law- they going to be confirmed, or not? It The PRESIDING OFFICER. The Sen- yers in the country, to say nothing is not like when any one of us runs for ator’s time has expired. about his own State. I think Senators election; we know that on a certain October 3, 2000 CONGRESSIONAL RECORD — SENATE S9673 day the election occurs. We either win Patricia Coan, for the U.S. District through very rapidly, all the judges or we lose. But we know that on that Court for the District of Colorado, has from the time they were nominated, to Tuesday, we are going to know our been pending for more than 500 days; the hearings, to the floor. A lot of the fate. We won or we lost. Dolly Gee, for the U.S. District Court other judges discussed today are judi- These people come here and they for the Central District of California cial nominees who have waited and never know what may happen. They has been pending for more than 495 waited and waited and waited and can- don’t know whether they will have a days; Rhonda C. Fields, for the U.S. not get a vote. hearing. And if they have a hearing, District Court for the District of Co- It is not too late in the session to they don’t know if there will be a vote lumbia, has been pending for 325 days; move on these nominations. We know in committee. And if there is a vote in Linda Riegle, for the U.S. District that we can make quick progress when committee, they don’t know whether Court of Nevada, has been pending for we want to do so. The group of nomi- they will come on the floor. And if they more than 165 days. nees being considered tonight include come on the floor, they don’t know if Let them have a vote. These women nominations received on a Friday, who they will have a vote because one per- are outstanding. They have dem- had a hearing the next Wednesday and son hiding in the Cloakroom will say: onstrated more than most people who were reported that Thursday, all with- Don’t allow it to come to a vote yet. So get confirmed in this body, Republican in a week. In addition, there is the ex- they may have 99 Senators voting for or Democrat, how well qualified they ample of a hearing held last month by them but somebody mysteriously in are. At least let them have a vote. If the Government Affairs Committee on the background says ‘‘Don’t vote,’’ and people want to vote against them, vote two District of Columbia Superior they don’t vote. against them. Court judges, one who was nominated Helene White of the U.S. Court of Ap- I will state for the record that I will on May 1 and the other who was nomi- peals for the Sixth Circuit has been vote for every one of them. In checking nated on June 26. Another example of pending for 1,360 days. Governor Bush with our side of the aisle, every single the ability of the Senate to act is the said we ought to have a vote up or Democrat Senator will vote for every September 8 confirmation of James E. down within 60 days. Let’s have a vote one of these women. Baker to the U.S. Court of Appeals for on Helene White. She has been waiting President Clinton, in remarks before the Armed Forces. In addition, there is not 60 days, not 600 days, but 1,360 days. the Michigan Bar Association, recently the examples of Timothy Lewis who Kathleen McCree Lewis, who has spoke about the Senate’s failure to act was confirmed in waning days of the been nominated for the U.S. Court of upon his judicial nominees, noting his 1992 session, the last year of a Repub- Appeals for the Sixth Circuit, an out- nominees have received more top lican presidential term with a Demo- standing African American woman, American Bar Association ratings than cratic majority in the Senate. Judge who has one of highest ratings of any- those of any President in 40 years. Lewis was confirmed to the Third Cir- body we have ever seen come before the President Clinton, to his credit, has cuit on October 8, having only been Senate, has been waiting for 370 days. nominated people who have received nominated on September 17 of that Not the 60 days we talked about, but higher ratings than any President, year. more than six times the 60 days. Democrat or Republican, in 40 years Of course, the Republican candidate Bonnie Campbell, for the U.S. Court of and they still get held up. He said: for the presidency has said that nomi- Appeals for the Eighth Circuit, has These people are highly qualified, which nations should be acted upon within 60 been spending for more than 215 days. leads to only one conclusion, that the ap- days. Of the 42 judicial nominations We are debating bringing up the Vio- pointments process has been politicized in currently pending, 37 have been pend- lence Against Women Act which has the hope of getting appointees ultimately to ing from 60 days to 4 years without been stalled. The Violence Against the bench who will be more political. That is final action. Women Act has expired. Distinguished wrong. It is a denial of justice. Let us compare the lack of action Senators on both sides of the aisle are President Clinton is right. We should this year to what a Democratic major- working to bring it up and we cannot move forward with these nominees. Let ity in the Senate accomplished in 1992 bring it up for a vote. them have a vote. Don’t do this in the during the last year of a Republican I see the distinguished Senator from dark of the night holding people up. presidential term. The Senate con- Delaware and the distinguished Sen- We are going to have four nominees, firmed 11 Court of Appeals nominees ator from Kansas, both of whom sup- three from Arizona which has a des- during that Republican President’s last port it on the floor, and we cannot get perate situation, where they need Fed- year in office and a total of 66 judges that up for a vote. eral judges. My friend from Arizona, for that year. This year the Senate is We also can’t get Bonnie Campbell Senator KYL, has pointed out, quite will not reach anywhere near 66 con- up, even though she is the Director of rightly, that cases cannot be heard, firmations, not 60, not 50, not even 40. the Violence Against Women Office. several cases cannot be heard. He has In 1992, the Committee held 15 hear- She supported, worked for and adminis- had experiences as a civil lawyer. He ings—twice as many as this Committee tered the Violence Against Women Act, knows how difficult that is. has found time to hold this year. In the an act that has seen a dramatic de- I say as a former prosecutor, when last 10 weeks of the 1992 session, the crease in violence against women. that happens, the criminal cases can’t Committee held four hearings and all We ought to be standing and applaud- be heard because you don’t have of the nominees who had hearings then ing Ms. Campbell. She is somebody who enough people on the bench. When that were confirmed before adjournment. In shows by her own experience that she happens, the prosecutor has to start the last 10 weeks of the 1992 session, we can do the things necessary to bring plea bargaining down. He or she has to confirmed 32 judicial nominations. In down this scourge of violence against either get a lighter sentence or has to the last 10 weeks of this year we will be women in our country. Now that she start dropping charges all over the holding no hearings and confirming has gone through the vetting process, place because they know they can’t get only four District Court nominees. and found out that she is one of the a trial because the judges aren’t there. We still have pending without a hear- most qualified people to be a judge of If we are going to be tough on law ing qualified nominees like Judge He- anyone confirmed in the last 20 years, and order, we have to have the judges lene White of Michigan. She has been Republican or Democrat, we ought to there. We cannot just say we are held hostage for over 45 months with- at least let her have a vote instead of against crime. I am willing to concede out a hearing. She is the record holder holding her in limbo. that all 100 of us are against crime. But for a judicial nominee who has had to Elena Kagan for the U.S. Court of if we are going to fight crime, we have wait the longest for a hearing and her Appeals for the District of Columbia to have the men and women there to do wait continues without explanation to has been pending for more than 480 it: the prosecutors, the defense attor- this day. days without a vote; Lynette Norton, neys, and the judges. We still have pending before the for the U.S. District Court for the If we will move those judges through, Committee, the nomination of Bonnie Western District of Pennsylvania, has I will vote for every one of them. But Campbell to the Eighth Circuit. Ms been pending for more than 890 days; I also point out that they can move Campbell had her hearing last May, but S9674 CONGRESSIONAL RECORD — SENATE October 3, 2000 the Committee refuses to consider her has joined Sen. Robb in requesting that Sen. vestigations that he is not at liberty to nomination, vote her up or vote her Hatch give Mr. Gregory a hearing. discuss, but I do not believe any such down. Instead, there is the equivalent It is past time for the Judiciary Com- impediments exist that would prevent of an anonymous and unexplained se- mittee to consider Mr. Gregory’s nomi- the Chairman from telling us why He- cret hold. Bonnie Campbell is a distin- nation. lene White, Roger Gregory, and guished lawyer, public servant and law We still have pending before the Enrique Moreno have not yet had a enforcement officer. She was the Attor- Committee the nomination of Enrique hearing. ney General for the State of Iowa and Moreno to the Fifth Circuit. He is the There continue to be multiple vacan- the Director of the Violence Against latest in a succession of outstanding cies on the Third, Fourth, Fifth, Sixth, Women Office at the United States De- Hispanic nominees by President Clin- Ninth, Tenth and District of Columbia partment of Justice. And she enjoys ton to that Court, but he too is not Circuits. With 23 current vacancies, our the support of both of her home State being considered by the Committee or appellate courts have nearly half of the Senators, Senator HARKIN and Senator the Senate. Mr. Moreno succeeded to total judicial emergency vacancies in GRASSLEY. I understand and share Sen- the nomination of Jorge Rangel on the federal court system. I note that ator HARKIN’s frustration and believe which the Senate refused to act last the vacancy rate for our Courts of Ap- that the Senate’s failure to act on this Congress. These are well-qualified peals is more than 11 percent nation- highly qualified nominee is without nominees who will add to the capabili- wide. If we were to take into account justification. ties and diversity of those courts. In the additional appellate judgeships in- We still have pending without a hear- fact, the Chief Judge of the Fifth Cir- cluded in the Hatch-Leahy Federal ing the nomination of Roger Gregory of cuit declared that a judicial emergency Judgeship Act of 2000, a bill that was Virginia and Judge James Wynn of exists on that court, caused by the requested by the Judicial Conference to North Carolina to the Fourth Circuit. number of judicial vacancies, the lack handle their increased workloads, the Were either of these highly-qualified of Senate action on pending nomina- vacancy rate would be 16 percent. jurists confirmed by the Senate, we tions, and the overwhelming workload. Also at our last executive business would be finally acting to allow a I remain vigilant regarding the Sen- session, my friend from Utah, the dis- qualified African American to sit on ate’s treatment of nominees who are tinguished chairman of the Judiciary that Court for the first time. Fifty women or minorities. I have said that I Committee, said there is and has been years has passed since the confirma- do not regard the Chairman as a biased no judicial vacancy crisis. That is a tion of Judge Hastie to the Third Cir- person. I have also been outspoken in bold statement considering there are 67 cuit and still there has never been an my concern about the manner in which current vacancies in courts and emer- African-American on the Fourth Cir- we are failing to consider qualified mi- gency situations, including the Fifth cuit in the history of that Circuit. The nority and women nominees over the Circuit. If we pass the bill that has nomination of Judge James A. Beatty, last several years. From Margaret Mor- been requested by the nonpartisan judi- Jr., was previously sent to us by Presi- row, Margaret McKeown and Sonia cial conference, we would have another dent Clinton in 1995. That nomination Sotomayor, through Richard Paez and 7 or more judicial vacancies, so we was never considered by the Senate Ju- Marsha Berzon, and including Judge would have over 150 judicial vacancies. diciary Committee or the Senate and James Beatty, Jr., Judge James Wynn, The chairman went on to say that was returned to President Clinton Roger Gregory, Enrique Moreno and all since 363 senior judges are now serving without action at the end of 1998. It is the other qualified women and minor- in the Federal judiciary the true num- time for the Senate to act on a quali- ity nominees who have been delayed ber of vacancies is ‘‘less than zero.’’ fied African-American nominee to the and opposed over the last several years, While it is true that there are 363 sen- Fourth Circuit. It is also time for the I have spoken out. ior judges now serving, it is inaccurate Senate to act on the nomination of The Senate will never remove the to say that the true number of vacan- Kathleen McCree Lewis to be the first blot that occurred last October when cies is less than zero. African American woman to serve on the Republican Senators emerged from I commend the large number of sen- the Sixth Circuit. President Clinton a Republican Caucus to vote lockstep ior judges for coming in to help out and spoke powerfully about these matters against Justice Ronnie White to be a fill in. Some of them are well into their at the NAACP Convention. We should Federal District Court Judge in Mis- eighties. But that is not the way it respond not be misunderstanding or souri. At a Missouri Bar Association should be. Surely, if we didn’t have mischaracterizing what he said but, in- forum last week, Justice White ex- these senior judges, the courts would stead, by taking action on these well- pressed concern that the rejection of collapse under the weight of their own qualified nominees. his nominations to a federal judgeship caseloads and the extended and exten- I commend Senators ROBB and WAR- will have a ‘‘chilling effect’’ on the de- sive vacancies. NER, along with Representatives BOBBY sire of young African American law- What we have is a situation where SCOTT and JIM CLYBURN, for speaking yers to seek to enter the judiciary. The selfless public servants have made a out last Wednesday to draw attention Senate took the wrong action last Oc- conscious decision to hold off on the re- to the Senate’s failure to act upon the tober when the Republican caucus re- wards of retiring from a job well done nomination of Roger Gregory to fill an jected Justice White’s nomination. to help administer fair and proper jus- emergency vacancy in the Fourth Cir- At our last Executive Business Ses- tice in our country. Our senior judges cuit. As Senator ROBB pointed out, Mr. sion in the Judiciary Committee, the should be thanked for their diligent Gregory has been nominated to fill a Chairman used some of Senator work and dedication. Still, their serv- vacancy that has existed on the Fourth BIDEN’s remarks from a nominations ice does not mean we have fewer vacan- Circuit for 10 years. While the Court is hearing last November to make the cies. Indeed, the Judicial Conference authorized to have 15 judges, it is oper- point that he is neither racist nor sex- has recommended 70 new judgeships in ating with only 10 judges today. That ist. And I agree. I do not believe that addition to the already existing 67 va- means the Court has one-third of its the Chairman is himself for or against cancies. positions vacant. Beth Nolan, the a particular nominee based purely on Let’s not say the only way that can Counsel to the President, recently race or gender, though I do understand happen is if people, no matter how old wrote in the Wall Street Journal: that the Committee does keep track of they are, say: I will never retire; I will [T]he seat for which Mr. Gregory was nom- such numbers for statistical purposes. just keep on showing up and do the inated has not been filed before, nor allo- But to paraphrase our former Chair- best I can. It is the lifeblood of our ju- cated to any particular state in the Fourth man from later on in that Executive diciary to have new judges come in. Circuit. Moreover, Roger Gregory has the Business Session, it would be better for I regret that the last confirmation strong support of both of his home-state sen- the current Chairman to explain to hearing for Federal judges held by the ators (who were indeed consulted prior to nomination). Democratic Sen. Chuck Robb those of us on this side of the aisle and Judiciary Committee was in July. In recommended Mr. Gregory to the president the public at large why he is not mov- fact, that was the last time the Judici- and has been working tirelessly on Mr. Greg- ing on particular nominations. I under- ary Committee reported any nominees ory’s behalf. Republican Sen. John Warner stand there may be outstanding FBI in- to the full Senate. Throughout August, October 3, 2000 CONGRESSIONAL RECORD — SENATE S9675 September, and now the first week in are ostensibly being considered by the pleased that both the majority and mi- October, there have been no additional Senate and I have heard no discussion nority have now made that possible hearings held, or even noticed; no exec- about the four. So I am going to dis- and that in a few minutes we will be utive business meetings have included cuss the four very briefly. able to vote for all of these candidates. any judicial nominees on the agenda. The problem, as you have heard, is The first three candidates should I mention that because in 1992, the that many on the other side of the have been discussed this morning. I last year of the Bush administration, aisle are unhappy with the fact that know they were not. Instead, we had we had a Republican President and a other nominees have not been consid- the discussion that you have heard. Democratic majority in the Senate. We ered this year. You have heard all the But those four nominees, as Senator held three confirmation hearings in discussion about that. You have heard HATCH mentioned, are Michael Reagan August and September. We continued Senator HATCH on our side explain why from Illinois, about whom you will to work to confirm judges. that is so. But there has been great dis- hear a little more in a moment from How late did we work, even though pleasure on the other side because, in Senator FITZGERALD; Mary Murguia, a we have the so-called Thurmond rule their view, not all the nominees they very well qualified assistant U.S. attor- which cuts off judicial nominations would have liked to have considered ney from Arizona who, by the way, if after about midyear? Do you know how were considered. confirmed, will be the first Latina to long the Democrat-controlled Senate The four nominees who are before us serve as a Federal district court judge was confirming judges for a Republican today are the only four the Senate can from Arizona; and the Honorable Susan President? Up to and including the consider. They are the only nominees Bolton, a very distinguished Superior very last day of the session; not up to who have gone all the way through the Court judge in Arizona. All three of and including 6 months before the ses- process from nomination, ABA clear- those candidates I deem to be well sion ended. ance, FBI clearance, hearing before the qualified. I chaired the hearing. I can I know there is some frustration. Judiciary Committee, and then the Ju- certainly attest to the fact that the Some Senators have objected to Senate diciary Committee having acted upon two from Arizona have the highest committees continuing to meet on them to send them to the floor of the qualifications. That leaves the fourth who is being other matters while the Senate is in Senate. These are the only four on considered separately here for reasons I session. That is partly because the whom the Senate can act. I am pleased will discuss in just a moment, but he is matter is so acute with regard to the that, today, we will have the oppor- James Teilborg. Since I think it is ap- numerous vacancies in our court of ap- tunity to do that. propriate when we are going to vote on peals and the qualified women and men All four of these nominees were pend- somebody to actually have a little dis- who have been nominated and stalled. ing in July. The majority leader made cussion about the individual, I am The chairman says, and he holds the a request of the minority to consider pleased to present a couple of minutes banner for his party, that Democrats the four nominees. That request was on his background here. have no grounds to complain. I remind denied, however. So these four nomi- He was born and raised on a farm in the Senate of the hoops that Richard nees had to be held over the August re- southern Colorado and was State Presi- Paez and Marsha Berzon had to jump cess. Obviously, on our side we would dent of the Colorado Future Farmers of through in order to get a vote, includ- have much preferred that the four con- America. He married his wife, Connie, ing the extraordinary step of over- firmations could have occurred because 37 years ago. They have two sons, Andy coming a motion to postpone indefi- of the need to fill these vacancies for and Jay, and three granddaughters. nitely the vote on Marsha Berzon. the District in Arizona—which I will He and I attended the University of So I hope we will continue to meet refer to in just a moment—but to Arizona College of Law beginning in our responsibility to all nominees— which Senator LEAHY referred. He ac- 1964. That is where I first met Jim men, women, and minorities. As long knowledges we have a significant need Teilborg. I have known him ever since, as the Senate is in session, I am going in Arizona to fill these positions. But and we have been close friends. So I to urge action. Highly qualified nomi- there was objection on his side to their can attest not only to his qualifica- nees should not be delayed. The Senate consideration. tions as a fine lawyer but also as a fine should join with the President to con- So when we came back in September, individual. He served in active duty firm well-qualified, diverse, and fair- the majority leader again asked the U.S. Air Force to attend Navigator minded nominees to fulfill the needs of minority leader for concurrence to School. He is a retired colonel in the the Federal courts around the country. bring these four nominees to the floor United States Air Force Reserve after I see my friend from Arizona on the for a vote. Again, that was denied by 31 years in the National Guard and Re- floor. I have spoken somewhat longer the Democratic side. serve service. He was a member of the than I suggested to him that I would. I People might ask: Why would Demo- National Guard for 7 years, a navigator apologize for that, but I hope he will crats be objecting to President Clin- on the C–97 and KC–97 aircraft and, by take some comfort from the fact that ton’s nominees? The reason has noth- the way, has been 23 years admissions as I said at the beginning of my talk ing to do with their merits. As Senator counselor for the U.S. Air Force Acad- that I would vote for the nominees LEAHY pointed out, undoubtedly all emy. I would also note for the entire from his State, including one who has four of these nominees will be con- time I have been with the U.S. Con- been a long-time friend of his. I am firmed because they are all four very gress, Jim Teilborg has chaired my going to be urging Members on this well qualified. The reason has to do service academy committee, a huge job side to do so. I can say with some cer- with the politics of this Chamber. Be- of interviewing all the individuals who titude, all four will be confirmed. cause some Democrats were concerned would like to attend one of our mili- Mr. President, I reserve the remain- that not all of their people had been tary service academies: interviewing der of my time and yield the floor. yet considered, they were going to hold them, making recommendations to me, The PRESIDING OFFICER. The Sen- up nominees they perceived to be im- and then for me to the academies. As a ator from Arizona. portant to me and to Senator FITZ- result of his exemplary service, I must Mr. KYL. Mr. President, I appreciate GERALD from Illinois, the home State say we have a much higher than aver- those remarks of the distinguished of the four nominees here before us. age rate of acceptance by the service ranking member of the Judiciary Com- But the fact is, these people are need- academies—because of Jim Teilborg’s mittee. It is probably a good segue for ed to serve the people of the United fine service. me to try to explain what has been States of America. They were nominees He was a founder of the law firm of going on here because colleagues who of President Clinton. So the bottom Teilborg, Sanders & Parks, the 12th may be watching or people who are not line is that it is now time for the nomi- largest law firm in Arizona. His prac- in the Senate may be wondering what nations to be considered by the full tice focused on the areas of aviation, all of the discussion has been about Senate. We need to get over the poli- professional negligence, product liabil- when there are four specific nominees tics. We need to get on with doing the ity, and complex tort litigation. who President Clinton has nominated people’s business and confirm these The Presiding Officer will appreciate, for Federal district judgeships and they four well-qualified individuals. I am as a pilot himself, that, of course, Jim S9676 CONGRESSIONAL RECORD — SENATE October 3, 2000 Teilborg is an accomplished pilot as ment, I will quote him because I want I conclude with a quick comment well. him to know how much I agree with about the need to fill this position in He is a 33-year veteran trial lawyer. this important statement of his. Arizona. He was President of the Maricopa He said: In 1999, Congress created nine new County Bar Association, and was a We should be the conscience of the Nation. Federal district court judgeships—four member of the board of directors. He On some occasions, we have been, but we tar- for Florida, two for Nevada, and three was the lawyer representative to the nish the conscience of this great Nation if we for Arizona. The Nevada positions and Ninth Circuit Judicial Conference, a establish the precedents of partisanship and three of four in Florida have been con- distinguished position for a member of rancor that go against all precedents and set firmed, but none has been confirmed the bar, and has served as chairman of the Senate on a course of meanness and yet for Arizona. That is why this is smallness. the Maricopa County Bar Association such an important matter as we con- Medical/Legal Liaison Committee, and The Senator from Vermont was, I clude our business this year. also served as chairman of the Special think, very accurate not only in what These nominees are needed to handle State Bar Disciplinary Administrative he predicted would be the consequence the ever-increasing caseload in Ari- Defense Counsel. of the precedent we would set if we zona, and here is an illustration of that He is a Member of the International acted in that degree of smallness, but caseload. Association of Defense Counsel board also I think expressed the view all of us Our criminal felony caseload has in- of directors and was its president in share that our decisions should be creased 60 percent in the last 3 years. 1981; and, a very prestigious honor, a based upon the merits, however we see The district of Arizona ranks second in fellow of the American College of Trial them—maybe differently—but never total weighted filings for a judge Lawyers. This is the pinnacle for any- voting on an individual because of the among the Nation’s 94 districts, by the body who really wants to call himself a actions of someone else, to make a pro- way, twice the national average—901 trial lawyer. In the latest edition of test about some other point. compared to the national average of ‘‘The Best Lawyers of America,’’ of I appreciate his comments, and I 472. We are fourth in weighted felony course, he is included. commend to all of his colleagues the filings per judgeship. Felony filings per Jim Teilborg is one of those rare in- statement he has made here with re- judgeship weighted are 236 percent dividuals who has practiced law for all spect to Jim Teilborg. above the national average. of this time, made no enemies that I Mr. LEAHY. Will the Senator yield? So you can see, Mr. President, why know of, but a lot of friends in the Mr. KYL. I will be very happy to this burgeoning amount of work in Ari- practice of law as a very competent lit- yield. zona requires that we fill these posi- igator, a fine individual, and one who, Mr. LEAHY. I appreciate what my tions. We have 19 Indian reservations as we found when we interviewed peo- friend from Arizona said. And he is my and 21 tribes which produces a steady ple in Arizona about his potential nom- friend. It has been my experience on stream of U.S. jurisdiction cases which ination, had unanimous support among the committee, even on issues that are not found in most other States. Be- judges and lawyers for service on the start out appearing to be partisan, that cause we are on the border, we have a Federal district court. the Senator from Arizona has worked lot of illegal immigration and drug I cannot think of anyone who would hard to remove that sense of partisan- be more suited for the position because smuggling cases. And Arizona is one of ship. He and I have joined together on the fastest growing States in terms of of his background, because of his judi- a number of pieces of legislation. I do cial temperament, and because of his population. It is pretty easy to see how not think he would object to the de- a State such as Arizona can get into a philosophy of always treating people scription as a conservative Republican fairly and his love for the law. It is per- position where it has to fill these posi- and myself as a liberal Democrat, but tions. sonally a great honor for me and a we have both been pragmatic Senators pleasure to recommend James Teilborg I am very pleased that at this point, in getting some very good pieces of leg- just before the Senate concludes its to my colleagues. islation through. That is probably the last you will business for the year, we are able to fill I mention that because he and I may hear about Jim Teilborg. Nobody is these three positions in Arizona, as well share a belief that there have been going to argue against him as an indi- well as the Illinois position. I am de- some times this year when it has be- vidual, I am sure. Of course, none has lighted my colleague from Vermont come too partisan. I hope after the so far. I am hopeful that the political will be urging his colleagues on the elections, no matter who is elected disagreement we have had over other Democratic side to support all four President and no matter what the nominees will not spill over into a neg- nominations. I have certainly done the numbers are in the House and the Sen- ative vote on Jim Teilborg. same on our side of the aisle. I think it There is only one reason he has been ate, that a number of Senators who will send a very good signal of that set apart from the other nominees, and have had the experience of working to- very kind of bipartisanship Senator that is that he happens to be a Repub- gether across the aisle will start off the LEAHY was talking about if all of these lican. Of course, I have supported near- year trying to find pieces of legislation nominees receive our unanimous sup- ly 97 percent of President Clinton’s we can do that will demonstrate to the port. nominees during the time I have been country there are many Members of I reserve the remainder of whatever in the Senate, and I daresay virtually good will in both parties who do want time is remaining on my side. Mr. all of them have been Democrats. One what is best for this country. There President, it is my understanding that cannot base a vote on partisan reasons will be issues, of course, where there any quorum call time will be attrib- in this body. are distinct party differences, but there uted to both sides equally; is that cor- I was very pleased to hear Senator are so many issues where there is far rect? LEAHY say he would urge the support more unity. I hope we can do that. The PRESIDING OFFICER. The Sen- for Jim Teilborg, as well as commit- I thank the Senator for his kind ator is correct. ting that support himself. While we on words. I yield the floor. Mr. KYL. I suggest the absence of a both sides of the aisle have voted Mr. KYL. Mr. President, I thank the quorum. against candidates for reasons having Senator. I will conclude. Some of the The PRESIDING OFFICER. The Sen- to do with the merits of that individual best things we have done have been in ator will have to make that request. candidate, I do not know of any time I a bipartisan way—some of the things Mr. KYL. I ask unanimous consent have seen a colleague vote against a Senator LEAHY and Senator HATCH that any time spent in a quorum call nominee in protest of something some- have worked on in particular, things be equally divided. one else had done. That would be that Senator FEINSTEIN and I have The PRESIDING OFFICER. Without wrong. A protest vote having nothing worked on in particular. I certainly objection, it is so ordered. to do with the individual would be look forward to getting together with Mr. KYL. I suggest the absence of a wrong. Senator LEAHY after the election to see quorum. If the Senator from Vermont will how we begin next year, assuming I am The PRESIDING OFFICER. The still stay on the floor one more mo- returned to this body. clerk will call the roll. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9677 The assistant legislative clerk pro- In this letter, he reminded him as to Again, I want to respond a little bit ceeded to call the roll. what the senatorial prerogative was in to what my friend from Utah said this Mr. INHOFE. Mr. President, I ask accordance with the Constitution. At morning, the chairman of the Judici- unanimous consent that the order for that time he said: You have violated ary Committee, Senator HATCH. I am the quorum call be rescinded. the Constitution with these recess ap- reading from the transcript of this The PRESIDING OFFICER (Mr. pointments, and you have done so to morning’s session. Senator HATCH said: CRAPO). Without objection, it is so or- avoid our confirmation or lack of con- It had always been my intention for the dered. firmation. Therefore, if you have any Judiciary Committee to report Ms. Camp- Mr. INHOFE. Mr. President, I rise to more recess appointments, I will put a bell’s nomination. However, events conspired make some brief comments. hold on all nominees, not just judicial to prevent that from happening. I was listening, while I was chairing nominations but all nominations. First, during the August recess, as I have the session, to the very distinguished Consequently, after a short period of explained, the President determined to re- Senator from Vermont talking about time, President Reagan wrote a letter cess appoint several executive branch nomi- how many appointments and how many back to Senator BYRD and said: You nees over the express objection of numerous nominees should be acted upon. He was are right; it was a violation of the Con- Senators. very passionate in his appeal to just stitution. And he recited that the Con- He did so notwithstanding his agreement to clear such recess appointments with the have a vote; let’s just vote up or down. stitution had a provision for recess ap- He named nominee after nominee and relevant Senators.... pointments only in the cases when the how many days they have been under Second, after their August recess, Demo- appointment occurs during the time we consideration. crat Senators determined to place holds on I was tempted to go back and get the are in recess and that that was not the the four nominations we are debating today, history as to some of the problems we case when he made his recess appoint- even everybody admits—I think everybody admits—that they are important nomina- are having with this administration ments. Fifteen months ago, when we found tions and this arrangement that has been and the fact that, yes, I am guilty of out that President Clinton was making worked out has been fair. putting holds on judicial nominees and excessive recess appointments, I found Again, they threatened to shut down the doing the same thing that, back in Senate’s committee work, going as far as to the old letter that BOB BYRD had sent 1985, Senator BYRD did when Ronald invoke the 2-hour rule and forcing the post- to President Reagan, and I sent that Reagan was President of the United ponement of scheduled committee hearings. States. same letter to President Clinton, say- . . . For these reasons, Bonnie Campbell’s But rather than go into that, I will ing the same thing: If you continue to nomination has stalled. Ms. Campbell has only say this—I don’t want to take do recess appointments, we are going only the White House and Senate Democrats much time; I want the Senator from to put holds on all your nominees, ex- to blame for the current situation. Iowa to have his time—we have acted cept, I said, just judicial nominees. I don’t know what the Senator from upon President Clinton’s nominees. In Consequently, President Clinton, after Utah is talking about. Bonnie Camp- fact, it is my understanding that he is a period of 3 or 4 weeks, wrote a letter bell had nothing to do with whether only five short of having an all-time back and said that he would agree to the President made recess appoint- record of having nominees being con- the same terms Ronald Reagan had ments or not. And the holds that were firmed in a period of time. agreed to back in 1985. Then when placed on the four nominations—they Even though the Senator from President Clinton violated his word, I were saying, wait a minute, Bonnie Vermont was quite eloquent in talking put holds on nominations. This was 15 Campbell had her hearing 2 months be- about all of the judicial nominees who months ago. fore some of the nominees that we are were left without final action being As we all know, there was a vote to voting on today. Three of these nomi- taken, either to confirm or not con- override my holds after a few months, nees that will get their vote today were firm, if we quit right now and didn’t and that was successful. However, for nominated, got their hearing and were confirm these four we are discussing all judicial nominations that have not reported out of Committee within one today, at the end of President Clinton’s gone through the process since Presi- week in July of this year. Bonnie term, that would leave a total of 67 va- dent Clinton did have 17 recess appoint- Campbell’s hearing was in May. ments during the August recess, I have cancies. It is my understanding that 61 So we are only saying: Why not take renewed that hold on all future judicial is considered to be a full bench. those who had their hearings first? Let’s say 67 vacancies are there. nominations. Why take up those who had them Back when President Bush was Presi- I yield the floor. later? Bonnie Campbell had her hear- dent, when he left office at the end of The PRESIDING OFFICER. The Sen- ing, answered questions; they had more 1992, there were 107 vacancies. ator from Iowa. The bottom line there is the Demo- Mr. HARKIN. Mr. President, for the written questions that they sent her, crat-controlled Senate at that time benefit of Senators and staff, I initially and she responded to those. Yet there was able to stop or was stopping more had 3 hours of time on which to speak again, three of the four judges we are of the nominations than the Repub- about the judicial nominees and, more voting on here today went through the lican-controlled Senate is today. specifically, the holdup that is hap- first three steps of the process within Seeing that the Senator from Iowa pening on the Judiciary Committee one week. has left the Chamber and no one else is with regard to the former attorney Ms. Campbell has only the White asking for time, I will go ahead at this general of the State of Iowa, Bonnie J. House and Senate Democrats to blame point and proceed to the history behind Campbell, who has been nominated for for the current situation? What is the this. a seat on the Eighth Circuit Court of Senator from Utah talking about? Back in 1985, when Ronald Reagan Appeals. What is to blame are the pure rank pol- was President of the United States and In discussing this with several Sen- itics of the Senate Judiciary Com- the Senate was controlled by the ators, I can say that it is now my in- mittee and the Senate Republicans for Democrats, a lot of the conservative tention to speak for a few minutes and holding up Bonnie Campbell’s nomina- appointments—not just judicial nomi- to yield back the remainder of my tion and keeping it bottled up in com- nations but others—by the President time. In discussions with our side, I un- mittee. were not acted upon by the Democrat- derstand there probably will be just The Senator from Utah knows full controlled Senate. Consequently, voice votes on all of these nominees. well that this Senator from Iowa had President Reagan did something he Just for planning purposes—I know every right to exercise his rights as a should not have done back in 1985. He how sometimes I get irritated when I Senator on the floor, to bottle up a lot started making recess appointments, don’t really know what is happening of things on this floor after the August and he made many recess appoint- when some people have a lot of time— recess. I did not do so because I was led ments. The majority leader at that I want Senators to know I am going to to believe that, by acting in good faith, time, the very distinguished Senator speak for a few minutes, yield back my the Senate Judiciary Committee would from West Virginia, Mr. BYRD, wrote a time, and then move to the votes on act on Bonnie Campbell’s nomination. letter to President Reagan. the nominees. Why? Because the Senator from Iowa, S9678 CONGRESSIONAL RECORD — SENATE October 3, 2000 Mr. GRASSLEY—and if I am not mis- Well, I say to Senate Republicans, July. He was passed out the same taken, he is the second ranking mem- you better beware. The women of this week. Bonnie Campbell has waited 215 ber on the Judiciary Committee—sup- country are watching what you do up days since she was nominated. ports Bonnie Campbell and has stated here on the issues that are important The standard bearer of the Repub- so publicly. So I figured, well, he is sec- to them. They want the Senate to re- lican Party this year—Gov. Bush of ond ranking. authorize VAWA. They want judges Texas—said there should be a deadline Now, Mr. KYL, the Senator from Ari- who will enforce that law. Who better of 60 days from nomination through zona, is fourth ranking on the com- to do that than Bonnie Campbell? She the process. mittee, but he gets his nominee is qualified, and no one has come to the Evidently, the Republicans in the through. He was nominated, had a Senate floor and said any differently Senate and on the Judiciary Com- hearing, and was reported out that since her hearing. mittee are not paying much heed to week. Mr. KYL gets his nominee I can tell you, this Republican Sen- their standard bearer. through. ate that is holding up her nomination I am sorry to have to disagree with Well, I figured if I acted in good and the reauthorization of VAWA will Mr. HATCH. But the White House is not faith—and I did so by not doing any- have only themselves to blame if the to blame for this, and neither are the thing and letting the Judiciary Com- women of this country vote over- Senate Democrats. mittee go from one week to the next, whelmingly against their party in No- Mr. HATCH has an argument with the one week to the next, and I thought vember. It pains me to say this, but I White House on recess appointments. this week they didn’t report her out, think that is what it has come down to. That is another matter entirely. It has maybe they’ll do it next week, or If they want to play politics with nothing to do with judicial nominees. maybe the next week. Well, now, the Bonnie Campbell and Violence Against Maybe he doesn’t like what Mr. Clin- time has run out and it is clear to me Women, go right ahead, but it will bite ton said at a press conference. Maybe I was being strung along all this time them bad. Real bad. Senator HATCH doesn’t like a lot of with false promises that the Judiciary You may think you are only holding things the President does. But does Committee would, indeed, act on up one person, only one judge, saying, that give the Senator from Utah the Bonnie Campbell’s nomination. well, she was from Iowa, not of any right to hold up a judicial nominee be- So now to say that it is the Senate consequence. I say to my Republican cause he doesn’t like what the Presi- Democrats who are to blame for the friends, you are seriously mistaken. dent did on some other matter? current situation with Bonnie Camp- Bonnie Campbell did an outstanding I want to point out again that three bell is utter fabrication, total non- job as attorney general for the State of out of the four nominees voted on sense. The Senator from Utah knows as Iowa. She was well known to women all today were nominated, a hearing was well as I do that there is one reason it over this country as a role model and held, and they were reported out of the is being held up, and it is called poli- someone they have looked to for lead- committee in 1 week in July. Yet tics—pure rank politics. Then, again, ership, someone who has brought honor Bonnie Campbell has been waiting 215 Senator HATCH says that the reason it to our State, honor to the legal profes- days, and they will not report her out has been held up is because President sion, honor to this administration, and of the committee. Clinton had some recess appointments, honor to what we are about as a nation One can only ask again why the Re- and that we had a hold on these four in trying to provide more equality for publicans are playing this political nominees for a while. Well, why is he women in this country. charade. I guess they figure, well, if singling out one nominee? Why is he I say to my friends on the Republican they just hold on, maybe their guy will targeting Bonnie Campbell? Why is side, if you think you are playing win and they can move ahead. Bonnie Campbell the target? What smart politics by holding up Bonnie But, as I said earlier, I think the Re- about all the other judges? Why is he Campbell’s nomination, I say to you publicans over there ought to be aware singling her out? that you are sadly mistaken. of this one. This one is going to bite Is it because of her work to prevent But I guess it has come down to this. hard. domestic violence as the director of the I am told that there is no use even Mr. President, I yield whatever time Office of Violence Against Women at talking about it anymore. They are not the Senator from Minnesota desires. I the Justice Department? The Senate going to let Bonnie Campbell’s nomina- yield up to 10 minutes to the Senator Republicans have stalled passing the tion be reported out. I don’t know from New York, Mr. SCHUMER, and I re- reauthorization of that law just as they about that. I say it is never over until serve the remainder of my time. have blocked Bonnie Campbell’s nomi- it’s over. And perhaps some cooler The PRESIDING OFFICER. The Sen- nation from getting a vote on the Sen- heads will prevail on the Republican ator from Minnesota. ate floor. side. They will see that they are only Mr. WELLSTONE. Mr. President, I Bonnie Campbell has done a superb hurting their own cause. They are only came to the floor to support my col- job of focusing on the issue of violence hurting themselves and their can- league, the Senator from Iowa, and to against women, especially domestic vi- didates who are out there running by speak for a couple of minutes about olence. The Violence Against Women holding up Bonnie Campbell’s nomina- Bonnie Campbell. I believe Bonnie Act has expired. It expired on the last tion. Campbell would be the second woman day of September of this year. This Re- It is time we have more diversity on to serve on the Eighth Circuit Court of publican Congress didn’t even see fit to the Federal bench. Only 20 percent of Appeals. Dianne Murphy from Min- take it up and pass it. the Federal judiciary are women. Of nesota is the first. Bonnie Campbell So it is no surprise to me that in poll the 148 circuit judges, only 33 are has done a lot of good work, but most after poll after poll across this country women. It is time we have more—quali- important is her record at the Justice women are saying no to Republican fied women on the federal bench. Department in the violence against candidates because they see what has Last year, a report by the Task Force women office. been happening here. This Republican on Judicial Selection of Citizens for I come here to speak about this wom- Senate is holding up the one person Independent Courts—an independent an’s magnificent work. Bonnie Camp- who really knows what violence group—verified that the time to con- bell has probably more than any single against women is about, who headed firm female nominees is now signifi- individual made the most difference that office and has done a superb job; cantly longer than that to confirm when it came to reducing violence and yet Senate Republicans aren’t going to male nominees. There is a difference trying to end some of the violence in let her come out. How well has she that has defied logical explanation. families; unfortunately, most of it di- done? Take a look at the House vote on The fact is—it is true—to confirm fe- rected against women and children. reauthorization. The vote was 415 to 3. male nominees takes a lot longer than About every 13 seconds, a woman is Do you really think this bill would men. battered in our country. A home should have been reauthorized if the person We have some men who are being be a safe place. Somewhere between 3 who has headed the office to imple- voted on today. We have one man being million and 10 million witness this in ment its provisions had done a bad job? voted on today who was nominated in their homes. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9679 Bonnie Campbell has visited Min- and could help so much. Bonnie Camp- is how it should be. The framers of the nesota. I have seen her speak with very bell is a perfect example. We shouldn’t Constitution designed article III to quiet eloquence. I cannot say enough be delaying this nomination one day. keep judges outside of politics and about the magnificent work she has But we are. I just want to express my above influence. Read the Federalist done. As attorney general in Iowa, I support for Bonnie Campbell. Papers. One of the great debates was think she passed the first anti-stalking I yield the floor. that Federal judges, in article III, law in the State. She is well known in The PRESIDING OFFICER. The Sen- achieve life appointment. Iowa. She is well known throughout ator from New York. There was one reason for it: So they the United States of America. She is a Mr. SCHUMER. Before I get into the would be unfettered, so they would be skillful lawyer. She would be a great substance of my remarks dealing with uninfluenced; they could make their judge. She is extremely important honoraria for judges, I echo the words own decisions, knowing that no sanc- when it comes to being a voice for fam- of my colleague from Minnesota, Sen- tion could be taken against them for ilies in this country. She has done ator WELLSTONE, as well as our leader decisions they made, and, just as im- probably some of the best work that on the Judiciary Committee, Senator portantly, so the public would know it. any individual could possibly do in this LEAHY, about the holdup in judges. Because the judiciary has neither the incredibly important area of reducing Senator LEAHY has laid it out quite power of the sword, as does the execu- violence in this country. There is way carefully; that is, that we have not ap- tive, nor the power of the purse, as too much violence—especially directed pointed as many judges, on a percent- does Congress, it is essential that the at women and children. age basis, as when Democrats con- judiciary maintain its power—and it I cannot for the life of me understand trolled the Senate during the Reagan has, thank God—for these 211 years why we have been waiting almost 7 and Bush years. since the Constitution was written, months or thereabouts for this nomina- I particularly add my voice to those through an untainted reputation for in- tion to move through the Senate. who are asking that Bonnie Campbell tegrity and impartiality. The Federal Minnesota is covered by the Eighth be added to the Eighth Circuit. judiciary has had it. It has frustrated Circuit Court of Appeals. Dianne Mur- The reason I rise is not only as a us at times. It frustrated Franklin D. phy is from the State of Minnesota. member of the Judiciary Committee, Roosevelt in the 1930s. It has frustrated She was the first woman to serve on not only as somebody who believes we some Members today on issues where this court. She is a great judge. ought to fill the vacancies in our we disagree with the majority. There is Bonnie Campbell would be a great courts—and I am appreciative that nothing we can do about it, thank God, judge. We need her on this court. We Senator HATCH has worked with me to because an independent judiciary is need a judge who understands the con- fill those vacancies in New York. Nei- vital. cerns and circumstances of too many ther the Second Circuit nor any of the I believe the public, if the surveys I women’s lives and too many children’s New York district courts have vacan- have seen are correct, believes the Fed- lives in this country. We need a judge cies, and we did manage to fill at least eral judiciary is independent—far such as Bonnie Campbell who has such six judgeships this year. I thank the more, I might say, than State and local a distinguished background and such a chairman for that. But that doesn’t judiciaries where there are either elec- distinguished career. We need a judge mean the rest of the country should tions or appointments of term so that on the Eighth Circuit Court of Appeals have things unanswered. judges believe they have to please ei- like Bonnie Campbell with such a prov- I worked with Bonnie Campbell. I ther an individual or even the whole en record of public service. I can’t find was the sponsor in the House of the Vi- electorate to make up their minds. anything in her background, I can’t olence Against Women Act. It was au- Nothing could do more to undo the find anything in her record, I can’t find thored originally by Senator BIDEN and justified reputation so much wanted by anything about her which would make Senator BOXER, when she was a House the founders and sustained in this Re- her anything other than 100 percent Member. She carried it between 1990 public as the provision that has been eminently qualified to serve on this and 1992. When she was elected to the inserted into H.R. 4690 that would court of appeals. Senate, she asked me to take the reins, allow judges to accept honoraria. The I share in the indignation that my and we did. We passed the law. As repeal of the ban would create a signifi- colleague from Iowa has expressed. somebody greatly interested in the Vi- cant loophole in the Ethics in Govern- There is no excuse to hold this nomina- olence Against Women Act, of bringing ment Act of 1978 which bars high-rank- tion for one day longer. I think it is that dirty little secret, the amount of ing Federal officials of all branches of shameful that, in the Senate, really violence in our families, out into the Government from receiving speaking good people who have so much to offer, sunlight so we could deal with it, I be- fees for 11 years. This prohibition has who could do such good—in this par- lieved very strongly the right person limited real and perceived corruption. ticular case, at the Eighth Circuit of should be appointed to be in charge of It has limited real corruption and, Appeals—find themselves blocked for the act. probably much more widespread, per- no good reason. Bonnie Campbell did a fabulous job ceived corruption. The conflicts of in- I heard Senator HARKIN say he on an issue of great concern to all terest among Members of Congress, thought this was going to come back to Americans. I think it is just unfair to Federal judges, and senior members of ‘‘bite.’’ I hope it does. It is true; most ‘‘reward her’’ by letting her sit there in the executive branch have been lim- of the people in the country are not so limbo when she so deserves and could ited, as well. directly connected to this process of be such a great addition to the Eighth I, for one, opposed honoraria for how we do confirmations of judicial ap- Circuit. I plead with my friend, the Members of Congress. I don’t believe in pointments. We have had Senator Senate majority leader, my friend, the a standard for the judges and a dif- LEAHY doing yeoman work, and there chairman of the Judiciary Com- ferent one for Members. While hono- are other Senators who have spoken. mittee—who, as I say, has been fair and raria were allowed in the Congress for Senator LEAHY provides the leadership. good to New York on this issue—to most of the years I served in the House, The more people learn about a person bring the names of all four judges be- I refused to take them. I remember my of the caliber of Bonnie Campbell—and fore the Senate, or all the judges who first speech, right after I was elected. A as a man, I care a lot about how we can are waiting in the wings—there are leading financial institution in New reduce this violence in families, how more than four—but particularly York asked me to speak. I had just we can reduce the violence in homes— Bonnie Campbell. been appointed to the Banking Com- the more people hear about this, the On an issue related, as well, of debat- mittee, which regulated a lot of their more outraged they will be, and for ing a number of nominees to be Federal activities. After the speech, they hand- good reason. judges, I want to address an issue that ed me a check. I was sort of surprised; I know it is asking too much, but I affects the entire Federal judiciary: it sort of knocked my socks off. I want to see a little bit more fairness. I The ban on honoraria. Under current looked at the check. I said: This is want to see an end to this blocking of law, as we all know, Federal judges are wrong; this is not a check for the ‘‘Re- good people who could do good work not allowed to accept honoraria. That elect Schumer Committee’’—which I S9680 CONGRESSIONAL RECORD — SENATE October 3, 2000 would have believed would have been sion into the thick of an appropriations [Rollcall Vote No. 263 Leg.] untoward to give me right after a bill in the dark of night ruins that YEAS—95 speech anyway—but this is for me. image. Unfortunately, the sneaky addi- Abraham Enzi McConnell They said: Yes, that is your hono- tion of this provision matches the sub- Akaka Feingold Mikulski rarium. stantive effect of it. It will only en- Allard Fitzgerald Miller Ashcroft Frist Moynihan I felt bad about it, returned the hance the public’s perception that Baucus Gorton Murkowski check, and vowed not to take any those in government should not be Bayh Graham Murray honoraria in the future. trusted. Bennett Gramm Nickles It is even more important for judges Biden Grams Reed I yield the floor. Bingaman Grassley Reid because, as I said, they are not sanc- Mr. President, I suggest the absence Bond Hagel Robb tioned to election; they are not sup- of a quorum. Boxer Harkin Roberts posed to be sanctioned to the whims of The PRESIDING OFFICER. The Breaux Hatch Rockefeller Brownback Helms Roth either the people or of special interest clerk will call the roll. Bryan Hollings Santorum groups. It would simply lower the The legislative clerk proceeded to Bunning Hutchinson Sarbanes standard for the very officials for call the roll. Burns Hutchison Schumer whom standards should be the highest. Mr. LOTT. Mr. President, I ask unan- Byrd Inhofe Sessions Campbell Inouye Shelby Thousands of U.S. citizens go before imous consent that the order for the Chafee, L. Jeffords Smith (NH) Federal judges every year and expect quorum call be rescinded. Cleland Johnson Smith (OR) impartial justice. That is why judges The PRESIDING OFFICER. Without Cochran Kerrey Snowe have, as I mentioned, life appoint- Collins Kerry Specter objection, it is so ordered. Conrad Kohl Stevens ments. That is why the rules so assidu- Mr. LOTT. Mr. President, I under- Craig Kyl Thomas ously guard against even the appear- stand that the Senators from Iowa and Crapo Landrieu Thompson ance of impropriety. And that is why Vermont are ready to yield back their Daschle Lautenberg Thurmond DeWine Leahy Torricelli we spend so much time debating the time; is that correct? Dodd Levin Voinovich appointment of these judges. We know Mr. REID. Yes. On behalf of the Domenici Lott Warner once they are appointed, that is it; Democrats who have been allocated Dorgan Lugar Wellstone they are in for life. time, time is yielded back. Durbin Mack Wyden Edwards McCain Lifting the ban will only leave liti- Mr. LOTT. With that in mind, we gants wondering whether the integrity also yield back all our time on the ma- NOT VOTING—5 of the judges has been undermined by jority side. Feinstein Kennedy Lincoln speaking fees from groups that have a I ask for the yeas and nays on the Gregg Lieberman stake, or may have a stake, in the case nomination of James Teilborg. The nomination was confirmed. before them. The PRESIDING OFFICER. Is there a Mr. CRAIG. Mr. President, I move to The Federal judiciary, it is said, is sufficient second? reconsider the vote. underpaid. If you believe it, raise the There appears to be a sufficient sec- Mr. LEAHY. I move to lay that mo- pay; budget the money. But don’t, ond. tion on the table. please, allow judges to moonlight as The yeas and nays were ordered. The motion to lay on the table was talking heads. Mr. LOTT. This vote will occur mo- agreed to. That demeans our independent Fed- mentarily. However, for just a minute, The PRESIDING OFFICER. The eral judiciary. To simply give them I will suggest the absence of a quorum, question now is, Will the Senate advise leave to forage for speaking engage- and we will be ready to proceed almost and consent to the three nominations ments is nothing less than an abdica- immediately. I want Senators to know en bloc? tion of our responsibility. Moreover, the vote is about to begin. The nominations , were confirmed. exempting judges from the honorarium I suggest the absence of a quorum. Mr. LEAHY. Mr. President, I move to ban will give the biggest benefit to The PRESIDING OFFICER. The reconsider the vote. those who are in high demand for clerk will call the roll. Mr. BIDEN. I move to lay that mo- speaking engagements—likely the The legislative clerk proceeded to tion on the table. most famous, the most high ranking. call the roll. The motion to lay on the table was Presumably inadequate compensation Mr. LOTT. Mr. President, I ask unan- agreed to. is a problem for all Federal judges, not imous consent that the order for the Mr. KYL. Mr. President, I rise to just those who can garner the largest quorum call be rescinded. thank all of those responsible for help- fees or even who are the most eloquent. The PRESIDING OFFICER. Without ing in the steering of the confirmation We don’t hire our judges, we don’t ap- objection, it is so ordered. of these four nominees—Senator HATCH point our judges, on the basis of elo- Mr. LOTT. Mr. President, we are and Senator LEAHY. quence. ready for the recorded vote. I also would like to make a quick Additionally, if judges are underpaid, The PRESIDING OFFICER. The comment about my colleague, Senator then they may be more susceptible to question is, Will the Senate advise and GRASSLEY, who observed earlier that influence from outside income—even consent to the nomination of James A. even though I rank fifth on the Judici- more reason to maintain the hono- Teilborg, of Arizona, to be U.S. District ary Committee and Senator GRASSLEY rarium ban. Judge for the District of Arizona? The ranks second, I was able to secure In conclusion, the issue boils down to yeas and nays have been ordered. The these nominees; whereas, the nominee one simple, simple nugget: The faith of clerk will call the roll. very important to Senator GRASSLEY the people in their government. We The legislative clerk called the roll. and Senator HARKIN has not been con- have a great Republic. The more I am Mr. NICKLES. I announce that the sidered. on Earth, the more I believe that the Senator from New Hampshire (Mr. I want to make it clear that senior- Founding Fathers were the greatest GREGG) is necessarily absent. ity had nothing to do with it. Senator collection of practical geniuses history Mr. REID. I announce that the Sen- GRASSLEY has worked long and hard on has ever known and the more I believe ator from California (Mrs. FEINSTEIN), behalf of the nominee that Senator that our country is, as they put it, a the Senator from Massachusetts (Mr. HARKIN has spoken about, Bonnie noble experiment. It was when it start- KENNEDY), the Senator from Con- Campbell, former attorney general of ed, and, God bless America, it still is necticut (Mr. LIEBERMAN), and the Sen- Iowa. today. ator from Arkansas (Mrs. LINCOLN) are I worked very hard on behalf of these Honoraria for judges strike a dagger necessarily absent. nominees. But to make it clear, the right in the heart of what the Found- The PRESIDING OFFICER (Mr. nominees from Arizona were President ing Fathers wanted—a totally inde- GRAMS). Are there any other Senators Clinton’s nominees. I worked with my pendent judiciary, perceived as inde- in the Chamber desiring to vote? colleague in the House, ED PASTOR, a pendent as well as actually being inde- The result was announced—yeas 95, Democrat, in helping to ensure that pendent. Inserting this nefarious provi- nays 0, as follows: these nominees could be considered in October 3, 2000 CONGRESSIONAL RECORD — SENATE S9681 this session of the Congress; that we I am still hopeful perhaps they will The issue of judgeships in the Federal could have the Senate Judiciary Com- see the light and permit that to hap- courts is not just about numbers and mittee approve the nominations, and pen, although time is running out. I statistics. Much more is at stake. Each send them to the floor for consider- will take every day we are here to talk judgeship is a life-time appointment ation. It was still laid over over the about it. that yields great power but is basically August recess. Notwithstanding all of I yield the floor. accountable to no one. that, we were able to get it done. The PRESIDING OFFICER (Mr. The Senate has a Constitutional duty But in the case of Bonnie Campbell, GRAMS). The Senator from South Caro- to review each nominee carefully and she is a circuit court nominee. I know lina. deliberately. We take this responsi- Senator GRASSLEY and Senator HARKIN Mr. THURMOND. Mr. President, we bility very seriously in the Judiciary have an agreement that they will sup- have heard much debate today about Committee, as we must. We cannot be port each other’s nominees when the Federal judges. One would think that a rubber stamp for any Administration. other party is in power. In this case, President Clinton has fared very poorly The entire Nation loses when we allow the Democratic President makes a in the judicial confirmation process, judicial activists or judges who are soft nominee, and Senator HARKIN is sup- but this is simply not true. He has done on crime to be confirmed to these life- portive and Senator GRASSLEY is also quite well with the cooperation of the time positions. Republican-controlled Senate. supportive. He certainly has been sup- Under Senator HATCH’s leadership, During the President’s first term, the portive. the Judiciary Committee has taken a Senate confirmed nearly one-quarter of I want the Record to be clear—I am fair and reasoned approach to the con- the entire Federal Judiciary. After sure Senator HARKIN would concur in firmation process. As a result, the Clin- today, the Senate will have confirmed this—that Senator GRASSLEY has been ton Administration has done quite well 44 percent or 377 Clinton judges. a very strong advocate for Bonnie regarding judicial confirmations. Campbell. It is no secret that while I served as I think the circumstances that per- Chairman of the Judiciary Committee f during the first six years of the Reagan mitted us to confirm these other four LEGISLATIVE SESSION nominees—one from Illinois and three Administration, I made the confirma- from Arizona —didn’t have anything to tion of judges a top priority of the The PRESIDING OFFICER. The Sen- do with the seniority on the committee Committee. I am proud of our accom- ate will return to Legislative Session. or it wouldn’t have been possible for plishments during those years. f the Arizona judges to have been con- Yet, with Republican control of the firmed by the Senate. Congress, President Clinton’s success MORNING BUSINESS I thank the Chair. rate is really no different. After today, Mr. LOTT. Mr. President, we in- Mr. HARKIN. Mr. President, I re- the Senate will have confirmed only tended to proceed to an agreement to spond by saying I was not trying to five more Article III judges for Presi- take up the Interior appropriations imply one way or the other that senior- dent Reagan than it has thus far for conference report, but it looks as if it ity had something to do with who gets President Clinton. will be a few minutes before we can out of the Judiciary Committee. My Today, the vacancy rate is 7.9 per- work through an agreement that will main point was that three of the four cent, and the Clinton Administration allow that. has recognized a 7 percent vacancy rate nominees we voted on today have been In the meantime, after Senator HAR- as virtual full employment for the Ju- pending a very short time. They were KIN completes his remarks, I will enter nominated in July, their hearing was diciary. The vacancy rate at the end of into consent for a period for morning the Bush Administration was 11.5 per- in July, and they were reported out of business so Senators can speak on cent, but there was no talk then about Committee in July—all in the same issues they desire, but within an hour a vacancy crisis. At the end of the week. And they were brought to the we hope to get an agreement on how to Bush Administraton, the Congress ad- floor today. Bonnie Campbell has been proceed to the Interior appropriations journed without acting on 53 Bush sitting there for 215 days. She had her bill conference report. We need to do nominations. Today, there are only 38 hearing in May. Yet they won’t report that. Clinton nominees pending in Com- her out of the Judiciary Committee. In view of the present situation, we This is unfair. It is unfair to her. It is mittee. will not have any more recorded votes unfair to the women of this country. It The Fourth Circuit is a good example tonight. We will try to get an agree- is unfair to the court which needs to of the healthy status of the Judiciary. ment to kick in the Interior appropria- fill this position. We recognize in The court is operating very well and tions bill, and that would be considered Bonnie Campbell a champion, a cham- does not need more judges. In fact, tomorrow. pion of women, someone who has done today, it is the most efficient circuit. I ask unanimous consent the Senate an outstanding job in administering The Fourth Circuit takes less time the office of violence against women. than any other to decide a case on ap- be in a period for morning business, She is the only one who has held that peal. The truth is that, due to a lack of with Senators permitted to speak for office since the legislation was passed. cases needing oral argument, the up to 10 minutes each. The House last week voted 415–3 to re- Fourth Circuit has cancelled at least The PRESIDING OFFICER. Without authorize it. Now we will try to do one term of court for each of the past objection, it is so ordered. something in the Senate. I think the four years, and two terms of court for The Senator from Ohio. women of this country understand the the past two years. f Republican-controlled Judiciary Com- The Chief Judge of the Fourth Cir- MICROENTERPRISE FOR SELF-RE- mittee and the Republican-controlled cuit has made clear that additional LIANCE AND INTERNATIONAL Senate are stopping the Senate from judges are not needed, and he should having a vote on Bonnie Campbell for know better than us the needs of his ANTI-CORRUPTION ACT OF 2000 pure political reasons. court. There is no good reason to add Mr. DEWINE. Mr. President, I ask I think it is wrong the way they are judges to the most efficient circuit in unanimous consent the Foreign Rela- treating Bonnie Campbell in this nomi- the nation. Given that a circuit judge- tions Committee be discharged from nation process. I will continue to point ship costs about one million dollars per further consideration of H.R. 1143, and that out every day that we remain in year for the life of the judge, it would the Senate then proceed to its imme- session. It is unfair to her. It is unfair be a waste of taxpayer money to do so. diate consideration. to the women of this country to have We also should not be misled by the The PRESIDING OFFICER. Without someone so qualified, someone who has fact that some vacancies are defined as objection, it is so ordered. The clerk done so much to reduce and prevent vi- a ‘‘judicial emergency.’’ The term is will report the bill by title. olence against women, to have the Sen- defined so broadly that, with one ex- The legislative clerk read as follows: ate Judiciary Committee bottle up her ception, all current circuit court judge- A bill (H.R. 1143) to establish a program to name and not even permit it to come ships that have been vacant for 18 provide assistance for programs of credit and on the floor for a vote. months are considered ‘‘emergencies.’’ other financial services for microenterprises S9682 CONGRESSIONAL RECORD — SENATE October 3, 2000 in developing countries, and for other pur- The bill (H.R. 1143), as amended, was why some of the delays in confirmation poses. read the third time and passed. of judicial nominees occur. There being no objection, the Senate Mr. GORTON. Mr. President, I sug- The President has very broad discre- proceeded to consider the bill. gest the absence of a quorum. tion, as we know, to nominate whom- AMENDMENT NO. 4287 The PRESIDING OFFICER. The ab- ever he chooses for Federal judicial va- Mr. DEWINE. Mr. President, Senator sence of a quorum has been suggested. cancies. The Senate, in its role, has a HELMS has an amendment at the desk, The clerk will call the roll. constitutional duty to offer its ‘‘advice and I ask for its consideration. The assistant legislative clerk pro- and consent’’ on judicial nominations. The PRESIDING OFFICER. The ceeded to call the roll. Each Senator, of course, has his or her clerk will report. Mr. DEWINE. Mr. President, I ask own criteria for offering this advice The legislative clerk read as follows: unanimous consent that the order for and this consent on these lifetime ap- The Senator from Ohio [Mr. DEWINE], for the quorum call be rescinded. pointments. Mr. HELMS, proposes an amendment num- The PRESIDING OFFICER. Without The Judiciary Committee, though, is bered 4287. objection, it is so ordered. where many of the initial concerns Mr. DEWINE. Mr. President, I ask f about nominees are raised and arise. unanimous consent reading of the Often these concerns arise before a NOMINATIONS amendment be dispensed with. hearing is even scheduled. Judicial The PRESIDING OFFICER. Without Mr. DEWINE. Mr. President, I rise nominees are required to respond to a objection, it is so ordered. this afternoon to talk about comments very lengthy and a very detailed ques- (The text of the amendment is print- that have been made, both on the floor tionnaire from the Judiciary Com- ed in today’s RECORD under ‘‘Amend- and off the floor, with regard to the job mittee. They must submit copies of ments Submitted.’’) that the distinguished Senator from every document they have ever pub- Mr. DEWINE. Mr. President, I am Utah, the chairman of the Judiciary lished, any writing they have ever pub- pleased the Senate is considering the Committee, Mr. HATCH, has been doing lished, and provide copies of every ‘‘Microenterprise for Self-Reliance in regard to judicial nominations. I rise speech they have ever given. If they Act’’—legislation that would ensure today to commend my colleague for the continuation of international have previously served as a judge, they the outstanding work he has done in must provide information regarding microenterprise grant and loan pro- regard to these nominations. grams that are administered worldwide opinions they authored. Make no mistake about it, this is There are various background checks by the U.S. Agency for International tough work. No one who has not had conducted on each nominee. Some- Development (USAID). This is legisla- the opportunity to watch this from a times outside individuals or organiza- tion that I introduced last year, along close point of view, to see it up close tions provide the committee with in- with Senators BINGAMAN, CHAFEE, DUR- and personal, really has any idea what formation about a nominee. Sometimes BIN, KENNEDY, SCHUMER, TORRICELLI, kind of effort Senator HATCH has made that information from outside groups BOXER, COLLINS, FEINSTEIN, MIKULSKI, to make sure nominees who come to comes very early in the process. But and SNOWE. Representatives BEN GIL- this floor have been examined very sometimes, quite candidly, it comes MAN of New York and SAM GEJDENSON closely and very carefully. It is proper; of Connecticut introduced a similar later on. Each time it comes in, the it is correct that this be done. No one measure, which the House approved committee, committee staff, and ulti- can do a better job at this than Sen- last year. mately the chairman must review that I thank the chairman of the Foreign ator ORRIN HATCH. I have watched him, information. day after day, in his examination and All of this information is, of course, Affairs Committee, Senator HELMS, and ranking member of the committee, his staff’s examination and work on available to every member of the Judi- people who have been nominated to the Senator BIDEN, and the committee ciary Committee and must be thor- staff for their cooperation and insist- judicial bench. I must say he does a oughly reviewed before the nominee is ence on this legislation. My staff and I tremendous job. granted a hearing by the committee. If have been working closely with these Senate consideration of judicial questions about a nominee’s back- offices since last fall as well as with nominations is always difficult. It is ground or qualifications arise, further the administration and the Microenter- always contentious. That is just the inquiry may be necessary. The chair- nature of the business. Yet in this Con- prise Coalition. I thank Chairman GIL- man will schedule a hearing for a nomi- gress, under the guidance of Chairman MAN and the House International Rela- nee only after thorough review of a tions Committee staff for their ongoing HATCH, the Senate has confirmed 69 nominee’s preliminary information. At cooperation and support of this initia- Federal judicial nominations—69, for the hearing, a nominee has an oppor- tive. those who offer criticism. Mr. Presi- tunity to respond to any remaining We believe the investment in micro- dent, 35 of these nominees have been concerns about his or her record. But enterprise programs that we are now confirmed earlier this year, and we even after a hearing, sometimes fol- investing will reduce the need for for- have just confirmed 4 more. Yet not lowup questions are necessary to prop- eign assistance in the future. By pass- only has the chairman been criticized erly examine issues regarding the ing the Microenterprise Self-Reliance for nominees who are still pending in nominee’s qualifications. Obviously, Act, the Senate has a chance to ensure the Judiciary Committee, he has even this is a long process, as it should be— the future of these very successful pro- been criticized for nominees who have as it must be. After all, these are life- grams and help provide a sense of hope already been confirmed; that is, nomi- time appointments. These judges will and a future of possibilities for the nees who are now serving, today, this have a tremendous impact on how our poor in developing countries. very day, as Federal judges. Chairman laws are interpreted and enforced. I thank my colleagues for their sup- HATCH has been criticized for not mov- Some nominees, of course, have clear port of this legislation and I look for- ing those nominees fast enough. I records of achievement and superb ward to the continued success of the strongly disagree. I believe the chair- qualifications. These nominees often microenterprise programs. man has done an outstanding job, a move through the committee and to I ask unanimous consent that the fine job. I wanted to come to the floor the Senate floor very quickly. Other substitute amendment be agreed to, this afternoon to say that. nominees have records that are really the bill be read the third time and I would like to talk about the con- not quite so clear. These nominees passed, as amended, the motion to re- firmation process for a moment be- take more time for additional inves- consider be laid upon the table, and cause, again, I think many times peo- tigation and careful consideration. If a any statements relating to the bill be ple really don’t understand what this nominee is nominated late in a Con- printed in the RECORD. process entails—or at least what it en- gress, and that nominee has questions The PRESIDING OFFICER. Without tails when the chairman is doing a raised about his or her background or objection, it is so ordered. good job. I think an explanation of the qualifications, it is more likely that The amendment (No. 4287) was agreed process may help those who are listen- his nomination will not be considered to. ing to the debate today understand by the Senate. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9683 If nominees were only considered in group of advisers bring oncology nurses Medicaid, because the reimbursement the order they were nominated, the and oncologists into the local high cost is not sufficient to cover a digital process would, of course, grind to a schools throughout the State to make mammography, will have to settle for halt. We have heard some comments young women in high school aware of what will prove to be an inferior test. about that. Some people have argued breast health examinations and self-ex- The lives of many women who have yet this is a queuing up process; we just amination because the key to survival to discover they have breast cancer queue up whoever is next in line; they is early detection. may hang in the balance. should go next on the Senate floor. But Breast cancer is now an illness not to Therefore, I look forward to HCFA we know that cannot happen. If nomi- be feared as a death sentence but to be establishing a reasonable price at nees were only considered in the order conquered commonly and routinely. which reimbursement can be made they were nominated, the process This year, National Mammography under Medicare for those women on would grind to a halt as more qualified Day, which I sponsored years ago, will Medicare or Medicaid who seek a nominees would back up behind ques- occur on Friday, October 20. As in pre- breast examination by use of digital tionable nominees. vious years, the Senate has adopted a mammography, the new emerging I believe, if it were not for ORRIN resolution that I introduced affirming science, rather than one that is film HATCH’s efforts, there would have been this designation. based. far fewer judges confirmed during this This year’s National Mammography I thank the Chair. I yield the floor. session of the Congress. But I am also Day will see the beginning of a tremen- I suggest the absence of a quorum. sure that if ORRIN HATCH had not been dous new advance in early detection of The PRESIDING OFFICER. The chairman, other questionable nomina- breast cancer—digital mammography. clerk will call the roll. tions would have been made. Because This new technique offers many advan- The assistant legislative clerk pro- of this man’s integrity, because of this tages over standard film-based mam- ceeded to call the roll. man’s honesty, because of this man’s mography. From the patient’s point of Mr. LOTT. Mr. President, I ask unan- proven track record, and because he view, the usual 40-minute examination imous consent that the order for the takes his job so seriously, I am con- time can be cut in half, and the expo- quorum call be rescinded. vinced that certain nominations this sure to radiation can be reduced in al- The PRESIDING OFFICER. Without White House might have considered most all instances. objection, it is so ordered. making simply were never made and For many women, the mammogram f were never submitted. images with digital technology are I commend Senator HATCH for his ef- considerably more precise. The digital DEPARTMENT OF THE INTERIOR forts in moving the nominees along, technology makes it possible for the AND RELATED AGENCIES APPRO- but also for his efforts in doing a thor- radiologist to manipulate the images PRIATIONS ACT, 2001—CON- ough and complete job. I am very proud and to zoom in on questionable areas, FERENCE REPORT to have ORRIN HATCH as chairman of thus providing more accurate diagnosis Mr. LOTT. Mr. President, I ask unan- this committee. We are very honored in reducing the need for repeat exami- imous consent that the Senate now to have him serve in that capacity. nations. proceed to the conference report to ac- I thank the Chair. I yield the floor The digital technology does away company the Interior appropriations and suggest the absence of a quorum. with the cost and the disposal problems bill, and the conference report be con- The PRESIDING OFFICER (Mr. as well of x-ray film. sidered as having been read. In addition, the retrieval of prior THOMAS). The clerk will call the roll. The PRESIDING OFFICER. The film for comparison with current im- The assistant legislative clerk pro- clerk will report. ages no longer require the time-con- ceeded to call the roll. The assistant legislative clerk read suming manual search through an x- Mr. BIDEN. Mr. President, I ask as follows: unanimous consent that the order for ray room. The committee of conference on the dis- the quorum call be rescinded. Finally, by switching to the digital approach, this new technique allows all agreeing votes of the two Houses on the The PRESIDING OFFICER. Without amendment of the Senate to the bill (H.R. objection, it is so ordered. future advances in digital computer 4578) making appropriations for the Depart- Mr. BIDEN. Mr. President, I ask technology to be applied directly to ment of the Interior and related agencies for unanimous consent that I be able to saving women from breast cancer. the fiscal year ending September 30, 2001, and proceed as in morning business for up It is impossible, in my view, to over- for other purposes, having met, have agreed to 7 minutes to discuss digital mam- state the importance of this digital that the House recede from its disagreement mography. technique’s adaptability to new tech- to the amendment of the Senate, and agree The PRESIDING OFFICER. Without nological advances. Those of us old to the same with an amendment and the enough to remember how the first per- Senate agree to the same, signed by all of objection, it is so ordered. the conferees on the part of both Houses. f sonal computers were a huge advance over the slide rule are also aware of There being no objection, the Senate NATIONAL MAMMOGRAPHY DAY how the incredible subsequent ad- proceeded to consider the conference Mr. BIDEN. Mr. President, we are vances in computer technology meant report. now in the midst of National Breast that those first PCs were now useful (The conference report is printed in Cancer Awareness Month, and the air only as doorstops. I look forward to a the House proceedings of the RECORD of has been filled with new and sometimes similarly rapid advance in the new dig- September 29, 2000.) confusing statistics, new treatment, ital technology as it moves into the Mr. LOTT. Mr. President, I say to new research advances, and ever- field of breast cancer diagnosis. those who are interested, we are going present warnings about the seriousness Digital mammography is a revolu- to the report, but there is no time of this dreaded disease. tionary technology that must be of- agreement to run off. Nobody has given One aspect of this issue that is close fered to seniors and disabled who ob- up their rights in that regard, but we to my heart is National Mammography tain their medical care through Medi- are now going to be able to proceed to Day—a day to increase awareness of care. And it should be done as soon as the conference report, and we will con- how routine periodic mammography possible. I strongly encourage the tinue to work on the issues that are of and early diagnosis of breast cancer are Health Care Financing Administration interest to Senators. responsible for huge increases in the to evaluate this product expeditiously f numbers of long-term survivors of this and to set appropriate payment rates disease. under the Medicare program. MORNING BUSINESS I note parenthetically that my wife What I don’t want to see happen—I Mr. LOTT. Mr. President, I ask unan- started an organization in my State to realize this may seem somewhat pre- imous consent that the Senate now be increase awareness—it is named after mature—is that digital mammography in a period for morning business, with her, not me—called the BIDEN Breast is only available for those who are able Senators permitted to speak for up to Health Initiative, where she and her to pay, while all those on Medicare or 10 minutes each. S9684 CONGRESSIONAL RECORD — SENATE October 3, 2000 In addition, I ask unanimous consent District of Columbia, which includes raise is not going to solve all of that that the next 2 hours be under the con- all the national monuments; as well as, agency’s needs, but it will help recruit trol of Senators ROBERTS and CLELAND. Rock Creek Park, National Parklands and retain personnel. More impor- I will be anxious to hear that presen- in the Capital Region, and 300 miles of tantly, it is the right thing to do. tation. parkways in the District of Columbia, f Mr. REID. Mr. President, I say to the Maryland, and Virginia. INTELLIGENCE AUTHORIZATION leader, we are at a point now where The United States Park Police is a BILL people have spent literally months on tremendous asset, but I am deeply con- the bill. It is good we are here. Senator cerned that due to a lack of adequate SECTION 303 LANDRIEU still has concerns. She wants funding, it is an asset that is losing its Mr. BIDEN. Mr. President, section to make sure everyone understands she edge. Make no mistake, I question not 303 of S. 2507, the Intelligence Author- may want to speak at least 2 hours and the leadership of the Park Police nor ization bill, as amended by the man- do some things with the legislation the brave men and women who serve agers’ amendment, establishes a new generally because of her unhappiness. selflessly as officers and support per- criminal offense for the unauthorized Mr. GORTON. Reserving the right to sonnel in that agency. Chief Langston disclosure of properly classified infor- object, I ask the leader, does this mean and his officers will do yeoman’s work mation. Existing criminal statues gen- we will start the actual debate on the no matter how well or how poorly fund- erally require an intent to benefit a Interior bill later today or will it be to- ed their agency is, they are profes- foreign power or are limited to disclo- morrow? sionals and committed to protecting sures of only some types of classified Mr. LOTT. Mr. President, there is no the public. I am worried that the De- information. Administrative sanctions time agreement, so we will not be run- partment of Interior lacks a commit- have constituted the penalty for most ning off agreed-to time. If Senators ment to providing sufficient funds to other leaks. want to speak on the bill itself, he or the law enforcement operations that While I support the basic objective of she can. Since we do have 2 hours set fall under the authority of the Sec- this provision, we must ensure that it will not be used in a capricious manner aside now for Senator ROBERTS and retary of the Interior. The Park Police or in a manner that harms our demo- Senator CLELAND, which will take us to is now 179 officers below its authorized cratic institutions. 8 o’clock, I presume the decision will strength of 806 officers. Furthermore, I see two respects in which some cau- be that we will begin on the Interior it is an agency that loses approxi- mately 50 officers a year either tion is merited. First, it could be ap- bill first thing in the morning. plied to trivial cases. I believe that Mr. REID. Mr. President, I also say through retirement or lateral trans- fers. It is understandable that it is dif- former Secretary of Defense Caspar to the leader, we will all want to be Weinberger once said that he told ev- getting our slippers on and pajamas ficult for some Park Police Officers to resist the higher pay of other agencies, erything to his wife. If his discussions ready for the big debate tonight. with his wife included classified infor- especially when you consider that over Mr. LOTT. That is what I had in mation, he surely would have violated a 30-year period, a United States Park mind. the letter of this bill. But so-called Mr. REID. By 8 o’clock. Police Officer makes approximately ‘‘pillow talk’’ to one’s spouse is com- Mr. LOTT. Did we get a clearance? $135,429 less than what the average sal- mon, and I don’t think we mean to Are the reservations withdrawn? ary is for officers at other agencies in throw people in jail for incidental talk The PRESIDING OFFICER. Yes. this area. In addition to being short- to a person who has no intent either to Without objection, it is so ordered. handed, equipment, from the officers’ use the classified information, to pass sidearms to the agency’s radio equip- f it on to others, or to publish it. ment is antiquated and in need of re- UNITED STATES PARK POLICE Mr. SHELBY. The Senator from placement. The Park Police needs our Delaware is correct. The Committee Mr. THURMOND. Mr. President, I help. expects that the Justice Department rise today to draw attention to a group It is truly a shame that the Park Po- will use its prosecutorial discretion of federal officers who carry out a vital lice is facing the challenges it is today wisely. In some cases, administrative mission and provide critical services, and we are in a position to do some- remedies are clearly more appropriate. but are largely unknown to people not thing about it. The men and women In each case however—as under all in the law enforcement community. I who serve as Park Police Officers have criminal laws—prosecutors will need to am referring to the men and women of not had a raise since 1990, and we judge whether criminal charges are the United States Park Police. should support legislation that will warranted. An agency within the Department of give them a much needed pay boost. In Mr. BIDEN. My second concern is Interior, the United States Park Police an era when it is harder and harder to that section 303 not be used as a jus- traces its lineage back to 1791 when attract qualified individuals into pub- tification for investigations of journal- then President George Washington es- lic service, let alone a life threatening ists. Our republic depends upon a free tablished a force of ‘‘Park Watchmen’’. profession such as law enforcement, it press to inform the American people of In subsequent years, the authority of is vital we do something to reward significant issues, including issues re- what has become the Park Police has those who already serve, as well as, to lating to foreign policy and the na- been expanded so that today, that de- attract new officers to an agency that tional security. If a leak statute were partment is responsible for providing provides services that keep the Capital to become a back door for bringing the comprehensive police services in the Region safe. investigate apparatus of the federal National Capital Region. Furthermore, It might sound cliche, but the United government to bear on the press, we they have jurisdiction in all National States Park Police is there when they would be sacrificing our democratic in- Park Service Areas, as well as other are needed. They are there when some- stitutions for the sake of protecting a designated Federal/State lands. one suffers an emergency in the waters few secrets. Much as we are dedicated While you will find their officers in around Great Falls, they are on the to the protection of classified informa- New York City and the Golden Gate parkways when someone is in need of tion, that would be a terribly bad bar- National Recreation Area in San Fran- assistance, and they are on the Mall gain. cisco, the bulk of the officers and du- keeping visitors to Washington safe. Mr. SHELBY. I agree with the Sen- ties of the United States Park Police They were there when the tragic shoot- ator from Delaware 100 percent, and I are right here in the National Capital ing took place in this building, and can assure this body that in passing Region. Park Police officers provide a they landed their helicopter on the section 303, no member of the Select multitude of services ranging from pa- plaza outside the Capitol in a valiant Committee on Intelligence intended trol to criminal investigation and from attempt to get a wounded United that it be used as an excuse for inves- counter-terrorism to helping to protect States Capitol Police Officer trans- tigating the press. That is why the the President. They are responsible for ported to a local trauma center as scope of this provision is limited to patrolling and providing police services quickly as possible. Giving the officers persons who disclose, or attempt to dis- in 22% of the geographic area of the of the United States Park Police a close, classified information acquired October 3, 2000 CONGRESSIONAL RECORD — SENATE S9685 as a result of authorized access to such guilty to one count of unlawfully re- permitted to conduct electronic sur- information. Such persons have a duty taining national defense information veillance on Dr. Lee, the Government to protect classified information has no and would be sentenced to time served, would probably not be in the position— right to disclose that particular infor- in exchange for telling what he had as it is now—of trying to ascertain mation to persons not authorized to re- done with the tapes. There remains a what really happened to the informa- ceive it, persons, even if he or she question as to whether Department of tion that Dr. Lee downloaded. There should later become a journalist. By Justice officials tried to make up for should be no doubt that transferring the same token, however, the statute is their blunders in this case by throwing classified information to an unclassi- not intended to lead to investigation or the book at Dr. Lee. The Judiciary fied computer system and making un- prosecution of journalists who pre- Subcommittee on Department of Jus- authorized tape copies of that informa- viously had authorized access to classi- tice Oversight will continue to hold tion—seven of which contain highly fied information and later, in their ca- hearings on this matter, but it has classified information and remain un- pacity as journalist, receive leaked in- been clear from the beginning that the accounted for—created a substantial formation. Department of Justice bungled the in- opportunity for foreign intelligence f vestigation of Dr. Lee. services to access our most important The critical turning point in this nuclear secrets. THE COUNTERINTELLIGENCE case came on August 12, 1997, when the The FISA warrant could have and REFORM ACT OF 2000 Department of Justice’s Office of Intel- should have been issued at several Mr. SPECTER. Mr. President, I have ligence Policy and Review (OIPR) points, some before and some after it sought recognition to discuss legisla- turned down an FBI application for an was rejected in 1997. Each key event tion arising from the investigation by electronic surveillance warrant under where the FISA warrant was not re- the Senate Judiciary Subcommittee on the Foreign Intelligence Surveillance quested and issued represents another Administrative Oversight and the Act, or FISA. OIPR believed that the lost opportunity to protect the na- Courts, which has been conducting application was deficient because it did tional security. For example, Dr. Lee oversight on the way the Department not show sufficient probable cause, and was identified by the Department of of Justice and the Federal Bureau of therefore decided not to let the appli- Energy’s Network Anomaly Detection Investigation have responded to allega- cation go forward to the special FISA and Intrusion Recording system tions of espionage in the Department of court. (NADIR) in 1993 for having downloaded Defense and the Department of Energy. In making this determination, the a huge volume of files. This bipartisan proposal will improve DoJ made several key errors. The De- As the name of the system implies, it the counterintelligence procedures partment of Justice used an unreason- is designed to detect unusual computer used to detect and defeat efforts by for- ably high standard for determining activity and look out for possible in- eign governments to gain unlawful ac- probable cause, a standard that is in- truders into the computer. Individuals cess to our top national security infor- consistent with Supreme Court rulings who monitored the lab’s computers mation by improving the way that alle- on this issue. For example, one of the knew that Dr. Lee’s activities had gen- gations of espionage are investigated concerns raised by OIPR attorney erated a report from the NADIR sys- and, where appropriate, prosecuted. Allan Kornblum was that the FBI had tem, but didn’t do anything about it. Together with Senators TORRICELLI, not shown that the Lees were the ones They didn’t even talk to him. An op- GRASSLEY, THURMOND, SESSIONS, SCHU- who passed the W–88 information to the portunity to correct a problem, to pro- MER, FEINGOLD, BIDEN, HELMS and PRC, to the exclusion of all the other tect national security, just slipped LEAHY, I introduced the Counterintel- possible suspects identified by the DoE away. ligence Reform Act on February 24 of Administrative Inquiry. That is the In 1994, Lee’s massive downloading this year. The Judiciary Committee standard for establishing guilt at a would have again showed up on NADIR, unanimously reported the bill on May trial, not for establishing probable but DoE security people never took ac- 18, and it was referred to the Senate cause to issue a search warrant. tion. Now, we’re told, they can’t even Select Committee on Intelligence DoJ was also wrong when Mr. find records of what happened. Yet an- which also deals with espionage mat- Kornblum concluded that there was other missed opportunity to protect ters. not enough to show that the Lees were the national security by looking into The Senate Intelligence Committee ‘‘presently engaged in clandestine in- what was going on. unanimously reported the bill on July telligence activities.’’ The information When Wen Ho Lee took a polygraph 20, and has included the measure as an provided by the FBI made it clear that in December 1998, DoE misrepresented amendment to the Intelligence Author- Dr. Lee’s relevant activities continued the results of this test to the FBI. DoE ization bill which passed the Senate from the 1980s to 1992, 1994 and 1997, yet told the FBI that Dr. Lee passed this today. that was deemed to be too stale, and polygraph when, in fact, he had failed. Few tasks are more important than the DoJ refused to send the FBI’s sur- This error sent the FBI off the trail for protecting our national security, so veillance request to the FISA court. two months. building and maintaining bipartisan When FBI Assistant Director John When Wen Ho Lee failed a polygraph support for this legislation to correct Lewis raised the FISA problem with on February 10, 1999, the FISA warrant the problems we identified during the the Attorney General on August 20, should have been immediately re- course of our oversight was my top pri- 1997, she delegated a review of the mat- quested and granted. It wasn’t. ority. The reforms contained in this ter to Mr. Dan Seikaly, who had vir- The need for legislation to address legislation will ensure that the prob- tually no experience in FISA issues. It these problems is obvious. The unclas- lems we found are fixed, and that the is not surprising then, that Mr. Seikaly sified information on this case shows national security is better protected in again applied the wrong standard for clearly that it was mishandled. The the future. probable cause. He used the criminal classified files make that point even To understand why this legislation is standard, which requires that the facil- more clear. Last year the Attorney necessary, I would like to review two of ity in question be used in the commis- General asked an Assistant U.S. Attor- the cases that the subcommittee sion of an offense, and with which he ney with substantial experience in looked at—the Wen Ho Lee case and was more familiar, rather than the rel- prosecuting espionage cases to review the Peter Lee case. Former Los Alamos evant FISA standard which simply re- the Wen Ho Lee matter. That pros- scientist Dr. Wen Ho Lee was arrested quires that the facility ‘‘is being used, ecutor, Mr. Randy Bellows, conducted on December 10, 1999, and charged with or is about to be used, by a foreign a thorough review of the case and con- 59 counts of violating the Atomic En- power or an agent of a foreign power.’’ firmed all of our major findings: the ergy Act of 1954 and unlawful gathering The importance of DoJ’s erroneous case was badly mishandled, the FISA and retention of national defense infor- interpretation of the law as it applied request should have gone forward to mation. In a stunning reversal on Sep- to probable cause in this case should the court. The list goes on. Our tember 13, the government accepted a not be underestimated. Had the war- counter-intelligence system failed in deal in which Dr. Lee would plead rant been issued, and had the FBI been this case, and the information at risk S9686 CONGRESSIONAL RECORD — SENATE October 3, 2000 is too important to let this dismal ligence Reform Act requires that deci- seriously undermined the Department state of affairs continue. sions of this nature be communicated of Justice’s efforts to prosecute the The Counterintelligence Reform Act in writing. The bill requires the Direc- case. This memorandum was based on of 2000 will help to ensure that future tor of the FBI to submit to the head of incomplete information and did not re- investigations are conducted in a more the department or agency concerned a flect the full scope of what Dr. Peter thorough and effective manner. Among written assessment of the potential im- Lee confessed to having revealed. As a the key provisions in this legislation is pact of the actions of the department consequence of the breakdown of com- one that amends the Foreign Intel- or agency on a counterintelligence in- munications between the Navy and the ligence Surveillance Act, FISA, by re- vestigation. The head of the affected prosecution team, the 1997 revelations quiring that, upon the request of the agency will be required to respond in were not included as part of the plea Director of the FBI, the Secretary of writing to the recommendation of the agreement. State, the Secretary of Defense or the FBI. This requirement with ensure This legislation contains a provision Director of Central Intelligence, the that what happened in the Wen Ho Lee that will ensure better coordination in Attorney General shall personally re- case—where the FBI said he could be espionage cases by requiring the De- view a FISA application. If the Attor- removed from access but the Energy partment of Justice to conduct brief- ney General decides not to forward the Department didn’t pull his clearance ings so that the affected agency will application to the FISA court, that de- for another 14 months—won’t happen understand what is happening with the cision must be communicated in writ- again. case, and will understand how the Clas- ing to the requesting official, with rec- To avoid the kind of problems that sified Information Procedures Act, or ommendations for improving the show- happened when the DoE ordered a CIPA, can be used to protect classified ing of probable cause, or whatever de- Wackenhut polygraph in December information even while carrying out a fect OIPR is concerned with. 1998, this legislation prohibits agencies prosecution. In these briefings Depart- Under this legislation, when a senior from interfering in FBI espionage in- ment of Justice lawyers will be re- official who is authorized to make vestigations. quired to explain the right of the gov- FISA requests goes to the Attorney The provisions of this bill will make ernment to make in camera presen- General for a personal review, that sen- an important contribution to improv- tations to the judge and to make inter- ior official must personally supervise ing the way counter-intelligence inves- locutory appeals of the judge’s rulings. the implementation of the rec- tigations are conducted. The sub- These procedures are unique to CIPA, ommendations. This provision will en- committee’s investigation of the Wen and the affected agency needs to under- sure that when the national security is Ho Lee case has made it abundantly stand that taking the case to trial at stake, and where there is a serious clear that improvements in these pro- won’t necessarily mean revealing clas- disagreement over how to proceed, the cedures are necessary, and the reforms sified information. The Navy’s posi- Attorney General and other senior offi- outlined in this legislation are specifi- tion, as stated in the Schuster memo, cials are the ones who work together to cally tailored to provide real solutions that ‘‘bringing attention to our sensi- resolve disputes, and that the matter is to real problems. tivity concerning this subject in a pub- not delegated to attorneys who have The subcommittee also looked at the lic forum could cause more damage to never worked with FISA before. espionage case of Dr. Peter Lee, who the national security that the original The Counterintelligence Reform Act pleaded guilty in 1997 to passing classi- disclosure,’’ was simply wrong. It was also addresses the matter of whether fied nuclear secrets to the Chinese in based on incomplete information and a an individual is ‘‘presently engaged’’ in 1985. According to a 17 February 1998 misunderstanding of how the case a particular activity to ensure that ‘‘Impact Statement’’ prepared by ex- could have been taken to trial without genuine acts of espionage which are be- perts from the Department of Energy, endangering national security. The latedly discovered are not improperly The ICF data provided by Dr. [Peter] Lee provisions of this legislation which re- eliminated from consideration. As was of significant material assistance to the quire the Department of Justice to FISA is currently worded, it is possible PRC in their nuclear weapons development keep the victim agency fully and cur- for someone like Mr. Kornblum to con- program. . . . For that reason, this analysis rently informed of the status of the clude that actions as recent as a couple indicates that Dr. Lee’s activities have di- prosecution, and to explain how CIPA of years ago or even a few months are rectly enhanced the PRC nuclear weapons can be used to take espionage cases to too stale to contribute to a finding of program to the detriment of U.S. national trial without damaging the national probable cause. Although I do not security. security, will ensure that the mistakes agree with Mr. Kornblum’s interpreta- Dr. Peter Lee also confessed to giving of the Peter Lee case are not repeated. tion of the law, I am confident that the the Chinese classified anti-submarine I appreciate the efforts of my col- changes contained in the Counterintel- warfare information on two occasions leagues on the Judiciary Committee ligence Reform Act will make it clear in 1997. Under the terms of the plea and the Senate Select Committee on that activities within a reasonable pe- agreement the Department of Justice Intelligence who have worked with me riod of time can be considered in deter- offered to Peter Lee, however, he got and the cosponsors of this bill. I am mining probable cause. no jail time. He served one year in a confident that the reforms we are The investigation of Dr. Lee was also half-way house, did 3,000 hours of com- about to pass will significantly im- mishandled in the field, where the FBI munity service and paid a $20,000 fine. prove the way espionage cases are in- and the Department of Energy often Considering the magnitude of his of- vestigated and, if necessary, pros- failed to communicate. For example, fenses and his failure to comply with ecuted. after OIPR rejected the FBI’s 1997 the terms of the plea agreement— I yield the floor. FISA application, the FBI told the De- which required his complete coopera- SECTION 305 partment of Energy that there was no tion—the interests of the United States Mr. BIDEN. Section 305 of S. 32507, longer an investigative reason to leave were not served by this outcome. the Intelligence Authorization bill, Dr. Lee in place, and that the DoE The subcommittee’s review of the provides, in brief, that no future ‘‘Fed- should do whatever was necessary to Peter Lee case led to the inevitable eral law . . . that implements a treaty protect the national security. Unfortu- conclusion that better coordination be- or other international agreement shall nately, no action was taken by DoE tween the Department of Justice, the be construed as making unlawful an until December 1998, some 14 months investigating agency—which is nor- otherwise lawful and authorized intel- after the FBI had said it was no longer mally the FBI—and the victim agency ligence activity of the United States necessary to have him in place for in- is necessary to ensure that the process Government . . . unless such Federal vestigative reasons. works to protect the national security. law specifically addresses such intel- To address this problem, and to en- One of the problems we saw in this case ligence activity.’’ This provision is sure that there is no misunderstanding was the reluctance of the Department necessary, the Committee report ex- about when the subject of an espionage of the Navy to support the prosecution plains, because ‘‘[t]here has been a con- investigation should be removed from of Dr. Peter Lee. A Navy official, Mr. cern that future legislation imple- classified access, the Counterintel- John Schuster, produced a memo that menting international agreements October 3, 2000 CONGRESSIONAL RECORD — SENATE S9687 could be interpreted, absent the enact- however, then we may safely infer that Mr. BIDEN. My final question to the ment of section 305, as restricting in- section 305 does not apply. Is that the chairman of the Select Committee on telligence activities that are otherwise understanding of the Select Committee Intelligence relates to how other coun- entirely consistent with U.S. law and on Intelligence, as well? tries may view section 305. I interpret policy.’’ The concern arises from an Mr. SHELBY. That is certainly our section 305 as governing only the inter- opinion issued in 1994 by the Office of intent. If a future law is to qualify pretation of a certain set of U.S. crimi- Legal Council (OLC) of the Department under section 305 of this bill, we would nal laws enacted in the future and of Justice. In that opinion, the Office expect its status as implementing leg- whether those laws apply to govern- interpreted the Aircraft Sabotage Act islation to be stated in the law, or ment officials. Is that also the under- of 1984—a law implementing an inter- some other contemporaneous legisla- standing of the chairman of the Select national treaty on civil aviation safe- tive history. Committee on Intelligence? ty—as applying to government per- Mr. BIDEN. another question is how Mr. SHELBY. Yes, it is. Section 305 sonnel. Although the OLC opinion em- to tell that a U.S. intelligence activity deals solely with the application of ‘‘is authorized by an appropriate offi- phasized that its conclusions should U.S. law to U.S. Intelligence activities. cial of the United States Government, ‘‘not be exaggerated’’ and also warned It does not address the question of the acting within the scope of the official that its opinion ‘‘should not be under- lawfulness of such activities under the duties of that official and in compli- stood to mean that other domestic laws of foreign countries, and it is in ance with Federal law and any applica- criminal statutes apply to U[nited no respect meant to suggest that a per- S[tates] G[overnment] personnel acting ble Presidential directive.’’ I am con- cerned that this could be misinter- son violating the laws of the United officially,’’ the Central Intelligence States may claim the purported au- Agency, out of an abundance of cau- preted to mean that some intelligence bureaucrat could authorize some other- thorization of a foreign government to tion, wants to avoid cases in which leg- wise illegal activity with a wink and a carry out those activities as justifica- islation implementing a treaty might nod. It is not the intent of the Select tion or as a defense in a prosecution for criminalize an authorized intelligence Committee on Intelligence that there violation of U.S. laws. activity even though Congress did not be written authorization for a U.S. in- Mr. BIDEN. I thank the distinguished so expressly provide. I understand the telligence activity? chairman. Agency’s concern that clarity for its Mr. SHELBY. I understand the con- agents is important. At the same time, cerns of the Senator from Delaware. f however, we should take care to specify We expect that in almost all cases in- how section 305 is intended to work. telligence operations exempted from One question is this: how do we tell SUBMITTING CHANGES TO THE future treaty-implementing legislation BUDGETARY AGGREGATES AND when a Federal law actually ‘‘imple- will have been authorized in writing. I ments a treaty or other international APPROPRIATIONS COMMITTEE would note however, that many indi- ALLOCATION agreement?’’ My working assumption, vidual actions might be authorized in supporting section 305, is that we through general written policies, rath- Mr. DOMENICI. Mr. President, sec- will be able to tell whether a future er than case-specific authorizations. tion 314 of the Congressional Budget law ‘‘implements a treaty or other Neither would I rule oral authoriza- Act, as amended, requires the Chair- international agreement’’ by reading tion in exigent circumstances. The man of the Senate Budget Committee the law and the committee reports that Committee believes that intelligence to adjust the appropriate budgetary ag- accompany its passage. If the text of agencies would be well advised to make gregates and the allocation for the Ap- that future law or of the committee re- written records of such authorizations, propriations Committee to reflect ports accompanying that bill states so as to guard against lax management amounts provided for emergency re- that the statute is intended to imple- or later assertions that unrecorded au- quirements. ment a treaty or other international thorization was given for a person’s I hereby submit revisions to the 2001 agreement, then section 305 is perti- otherwise unlawful actions. Such writ- Senate Appropriations Committee allo- nent to that statute. If there is no ten records will also protect the gov- cations, pursuant to section 302 of the mention of such intent in that future ernment employees from allegations Congressional Budget Act, in the fol- law or in its accompanying reports, that their actions were not authorized. lowing amounts:

Budget authority Outlays

Current Allocation: General purpose discretionary ...... $600,351,000,000 $592,809,000,000 Highways ...... 26,920,000,000 Mass transit ...... 4,639,000,000 Mandatory ...... 327,787,000,000 310,215,000,000 Total ...... 928,138,000,000 934,583,000,000 Adjustments: General purpose discretionary ...... +1,956,000,000 +905,000,000 Highways ...... Mass transit ...... Mandatory ...... Total ...... +1,956,000,000 +905,000,000 Revised Allocation: General purpose discretionary ...... 602,307,000,000 593,714,000,000 Highways ...... 26,920,000,000 Mass transit ...... 4,639,000,000 Mandatory ...... 327,787,000,000 310,215,000,000 Total ...... 930,094,000,000 935,488,000,000

I hereby submit revisions to the 2001 budget aggregates, pursuant to section 311 of the Congressional Budget Act, in the following amounts:

Budget authority Outlays Surplus

Current Allocation: Budget Resolution ...... $1,526,456,000,000 $1,491,530,000,000 $11,670,000,000 Adjustments: Emergencies ...... +1,956,000,000 +905,000,000 ¥905,000,000 Revised Allocation: Budget Resolution ...... 1,528,412,000,000 1,492,435,000,000 10,765,000,000

THE ELECTION OF VINCENTE FOX tional Action Party, to be their Presi- guration of Mr. Fox later this year will dent. This election represents a dra- end 71 years of PRI control of the Mexi- Mr. LEAHY. Mr. President, on July 2, matic change and a historic affirma- can Presidency. 2000, the people of Mexico elected Vincente Fox, candidate of the Na- tion of democracy in Mexico. The inau- S9688 CONGRESSIONAL RECORD — SENATE October 3, 2000 I want to join other Members of con- ficking and official corruption in Mex- Memorial a reality. More time is nec- gress in expressing my congratulations ico. essary, however, to complete the work to Mr. Fox and the people of Mexico. I Illegal immigration continues to be a that is left to ensure that our Air also want to commend President major concern for both countries. Al- Force heroes are properly recognized. Zedillo, whose leadership helped to en- though we must be sure that our immi- Despite decades of unflagging com- sure the freest and fairest election in gration laws are effectively and fairly mitment to America’s national secu- Mexico’s history. enforced, a long-term solution can only rity, the U.S. Air Force is the only Mr. Fox’s election has significance be achieved by improving the quality branch of the armed services without a far beyond Mexico’s borders. It rep- of life in Mexico where half the popu- memorial in the Nation’s Capitol The resents an historic opportunity for our lation—some 50 million people—strug- time has come to establish a site where two countries to redefine, broaden and gles to survive on $2 per day. the American people can honor their strengthen our relationship. With thousands of United States and aviation heroes. Building the memorial It is a relationship that has been bur- Mexican citizens traveling back and will accomplish this by recognizing dened by history, and plagued by dis- forth across the border every day, the yesterday’s aviation pioneers, serving trust, arrogance, and misunder- spread of HIV/AIDS, TB and other in- as a tribute to those serving their standing. There have been times when fectious diseases is inevitable. These country today, inspiring future genera- it seemed that on issues of hemispheric health problems, and shared environ- tions to proudly serve in the Air Force or international importance Mexico mental problems, can only be effec- in the future, and by preserving the embraced whatever position was the tively addressed if we work together. airpower lessons of the 20th century. opposite of the United States position, Human rights is another issue of im- American policymakers have long simply because we are the United portance to the Mexican people, and to understood the importance of estab- States. At other times, our country has Americans. These are universal rights, lishing air superiority during military treated Mexico like a second-class and it is very disturbing to read re- crises. Time and again, the United cousin once or twice removed. ports by the State Department and re- States Air Force has answered the call Problems that can only be solved spected human rights organizations of of duty and performed with distinction. through cooperation have too often widespread torture by Mexican police. Mr. President, we owe these brave men been addressed with fences and sanc- It is also unacceptable that American and women the honor of their own me- tions, and self-serving assertions of citizens, including priests, some of morial, and I urge my colleagues to sovereignty. It is time for a new ap- whom have lived and worked in Mexico support extension of this enabling leg- proach. There is far too much at stake for decades, have been summarily de- islation. for us to continue down the road of ported for as little as being present at f missed opportunities. a demonstration against excessive Mexico is our neighbor, our friend, force by the Mexican Army. Even when VICTIMS OF GUN VIOLENCE and our strategic partner. We share a the Inter-American Human Rights Mr. DURBIN. Mr. President, it has 2,000-mile border. We have strong eco- Commission rejected the Mexican Gov- been more than a year since the Col- nomic ties, with a two-way annual ernment’s arguments in these cases, umbine tragedy, but still this Repub- trade of $174 billion. We have a com- the Mexican Government has refused lican Congress refuses to act on sen- mon interest in combating to change its policy. sible gun legislation. transnational problems, and we have On August 24, 2000, President-elect Since Columbine, thousands of Amer- strong cultural bonds, as more than 20 Fox came to the United States, where icans have been killed by gunfire. Until million people of Mexico descent now he met with President Clinton and Vice we act, Democrats in the Senate will live in the United States. President GORE. During those meet- read the names of some of those who At present, there are several issues ings, Mr. Fox expressed a strong com- have lost their lives to gun violence in between the two countries that deserve mitment to democracy, economic de- the past year, and we will continue to immediate attention: velopment, and human rights, and to do so every day that the Senate is in After more than 6 years, the situa- cooperate with the United States to session. tion in Chipas remains unresolved. combat corruption, illicit drug traf- In the name of those who died, we Many innocent lives have been lost and ficking, and other transnational will continue this fight. Following are thousands of people are displaced and threats. the names of some of the people who living in squalor. Tens of thousands of This bodes well for our future rela- were killed by gunfire one year ago Mexican troops have surrounded the tionship. I hope that we would soon in- today. area, which could explode in renewed vite President-elect Fox to address a October 3, 1999: violence at any time. There is an ur- joint session of Congress. This should Jonos Baptiste, 21, Miami-Dade gent need to demilitarize the area and happen as soon as possible after the County, FL; Stephen Barnett, 39, Balti- embark on an enlightened, sustained, 107th convenes in January. Congress more, MD; Brandon Brewer, 26, Nash- good faith process to address the un- has had a major role in shaping United ville, TN; Frederick Darrington, 30, derlying social, economic, and political States policy toward Mexico, and we Kansas City, MO; Ernesto Galvan, 33, issues and resolve this conflict peace- would all benefit from hearing directly Dallas, TX; Charles Hart, 45, Detroit, fully. from Mr. Fox. It would also give him MI; Lloyd Hilton, 24, Gary, IN; Herman Since the implementation of NAFTA, an opportunity to outline in more de- M. Logan, 26, Chicago, IL; Pablo A. trade between our countries has dou- tail his proposals to address key issues Martinez, 20, Oklahoma City, OK; Mel- bled. While NAFTA has been beneficial that affect our relations. vin B. McPhail, 51, Madison, WI; Ar- for both nations, reports of violations Like many Americans I was very en- thur Michael, 50, San Antonio, TX; Joe of labor and environmental laws must couraged by Vincente Fox’s election, Moore, 29, Fort Wayne, IN; Ryan Pear- be more effectively addressed and out- and am confident that he will be a son, 22, Kansas City, MO; Michael J. standing trade disputes must be re- strong partner of the United States. I Plancia, 18, Salt Lake City, UT; Miquel solved. look forward to making the most of Rivas, 21, Houston, TX; William M. The Mexican Government has made this opportunity to strengthen the Smith, 52, Memphis, TN; Brandon A. progress in combating illegal narcotics United States-Mexico relationship. Wakefield, 20, Longview, WA; Porsche trafficking by undertaking a number of f Williams, 15, Miami-Dade County, FL; measures, including firing more than and unidentified male, 62, San Jose, 1400 federal police officers for corrup- AIR FORCE MEMORIAL CA. tion, cooperating with the FBI last Mr. DOMENICI. Mr. President, I rise One of the victims of gun violence I year on an investigation that occurred today in support of extending enabling mentioned, 15-year-old Porsche Wil- on Mexican soil, and increasing sei- legislation for the proposed Air Force liams of Miami-Dade County, Florida, zures of illegal narcotics. However, Memorial. Much has already been ac- was a young mother. In addition to major problems remain and far more complished by the Air Force Memorial caring for her own three-year-old child, needs to be done to reduce narco-traf- Foundation in its effort to make the Porsche cared for her younger brothers October 3, 2000 CONGRESSIONAL RECORD — SENATE S9689 and sisters after her mother died of public interest obligation. By choosing workload, I hope we can take a few cancer. Porsche’s life ended tragically not to air the debates, these other net- minutes to find a way to pass the Older when her ex-boyfriend shot and killed works have undermined the integrity Americans Act Amendments this year, her one year ago today. The 21-year-old of the political process and our democ- on behalf of all of our older loved ones. gunman later shot and killed himself racy, and engaged in a disrespect of the f We cannot sit back and allow such American electorate. MEMPHIS POLICE DEPARTMENT senseless gun violence to continue. The The political process should be cov- AND AMERICA’S LAW ENFORCE- deaths of these people are a reminder ered. The American people deserve MENT OFFICIALS to all of us that we need to enact sen- such coverage. The grant of free spec- sible gun legislation now. trum worth billions of dollars to broad- Mr. FRIST. Mr. President, two years f casters comes with a public interest ago this revered but relatively insu- obligation that requires them to in- lated complex we affectionately call NETWORKS FAILURE TO CARRY form the public of issues of vital im- Capitol Hill was rocked by a lone gun- PRESIDENTIAL DEBATES portance—not simply to do what is fi- man who shot his way through two se- Mr. HOLLINGS. Mr. President, I rise nancially expedient. curity checkpoints and, in a rampage, today to express my displeasure and f not only terrorized tourists and staff disappointment that two of the four but took the lives of two dedicated U.S. major broadcast networks—NBC and OLDER AMERICANS ACT Capitol Police officers who died defend- Fox, have decided not to broadcast na- AMENDMENTS ing them and the institution in which tionally, the presidential debate sched- Mr. BIDEN. Mr. President, I am we all serve. uled tonight between the Democratic pleased to be a cosponsor for the Older As a trauma surgeon, I am used to and Republican candidates for Presi- Americans Act Amendments of 1999, blood and death, but it is one thing to dent. which would authorize and expand the treat the result of violence in a hos- This election is likely to be among programs first set up under the Older pital; quite another to walk straight the closest national races in the last Americans Act of 1965. into its midst in a place you’d never twenty years. In exchange for the use The Older Americans Act authorizes expect. That day brought home not of spectrum without the imposition of a series of absolutely essential services only at what great risk these dedicated a fee, broadcasters have to fulfill their for our country’s seniors. Among oth- police officers serve, but also how public interest obligation. I do not be- ers, the Act provides nutrition serv- much we take their service—and their lieve it is too much to presume that ices, legal assistance, disease pro- courage—for granted. showing vital news information such as motion, elder abuse prevention, em- But the U.S. Capitol Police are not a presidential debate is encompassed in ployment assistance, and numerous in- the only ones who deserve our respect a broadcaster’s public interest obliga- formational programs, including the and support. Every officer, in every tion. long-term care ombudsmen. There is city and town across America, who Instead of showing the debate, NBC is hardly a senior in this country that is walks a beat, patrols a street, inter- showing a divisional wildcard playoff not touched, directly or indirectly, by cepts a drug push, responds to the call baseball game, although they are ap- one or more of the provisions of the of an angry neighbor or spouse, or even parently permitting their affiliates to Older Americans Act. These programs pulls over a speeding motorist, runs broadcast the debate, if they so choose. have become an integral part of the in- the same risk of death or serious injury Even more appalling, Fox is showing frastructure that helps keep our most from spontaneous violence that Offi- its new science fiction series produced experienced citizens vital and con- cers Chestnut and Gibson faced that by its own studio—Dark Angel—which structive members of society. day. Each of those officers deserve our I understand is particularly violent. I am particularly pleased that this thanks and admiration, but most of all, On Sunday, the Washington Post ran bill includes a much-needed new serv- they deserve our support. a story entitled—‘‘Even Hits can Miss ice, the National Family Caregivers That is why I have consistently in TV’s New Economy.’’ That article Program. The major medical advances fought for more Federal block grant outlined the enormous incentives the of the past 50 years have led not only funds for local police departments, as Networks have to air programs in to an overall aging of the population well as the flexibility to use those which they possess a vested financial but also to an increasing proportion of funds wherever they’re needed most— interest. I quote— the elderly who are living with chronic not just to hire more police officers, Just as a supermarket might reserve its diseases and disabilities. Many of these but to purchase the equipment or best shelf space for its house brands, the net- infirm elderly are cared for at home, training they need to protect not only works have begun to favor their in house putting a severe financial and emo- the lives of our citizens—which they programs over shows created by others, tional strain on family caregivers. This are more than willing to do—but their which are often less profitable in the long new program will provide such care- own lives as well. term. givers with a panoply of assistive serv- Three weeks ago, I had the honor of There it is Mr. President. Money ices, including provision of informa- meeting with the Board of the Mem- trumps the political process once tion, assistance with access, counseling phis Police Association in Memphis, again. Fox has likely spent millions of and training, respite care, and other Tennessee—a hard-working group of dollars to develop and promote its new supplemental services (home care, per- law enforcement officials who rep- series, and NBC likely spent a signifi- sonal care, adult day care). resent the 1,800 police men and women cant amount of money to acquire the It is absolutely essential to assist who respond to over 800,000 calls annu- rights to broadcast a baseball playoff caregivers as much as possible in order ally, protecting lives and property in game. But Mr. President, when net- to allow our infirm seniors to maintain Tennessee’s largest city. works choose their own programming their autonomy and sense of self- As always, they offered many con- or sports programming over an event worth, to permit them to live in the structive suggestions about how Con- as significant as tonight’s debate, they company of their loved ones and in the gress might address a variety of law fail to meet their public interest obli- least restrictive environment compat- enforcement issues, including the gation. Having to reschedule a baseball ible with their needs. This is what our issues of recruitment and quality of game or the debut of a new series cre- seniors fervently desire and it is the life. As the people who man the front ated by their studios does not justify right thing to do; the likelihood that lines in the war against crime and see NBC or Fox precluding the public from such programs will save the govern- first-hand the challenge that faces all having access to the presidential de- ment money in the long run is an of us, their perspective is invaluable, bates. I understand that one network, added bonus. and I hope to translate some of their ABC, decided to postpone the debut of There is little time left in this ses- ideas into legislation for the Senate’s one of its new shows ‘‘Gideon’s Cross- sion of Congress, and there are many consideration next year. ing’’ by one night so as to air tonight’s things that must be finished before ad- One of the advantages of being a U.S. debate. That is called honoring your journment. Yet as we struggle with our Senator is the opportunity to undergo S9690 CONGRESSIONAL RECORD — SENATE October 3, 2000 extraordinary experiences one would utilize existing and emerging informa- tem that can overlay information not otherwise never have. Getting to spend tion technology more effectively to only on water levels and rates but also time with the men and women who provide key decision makers with in- the surrounding infrastructure of lev- have made law enforcement their life’s formation critical for reducing loss ies and roads, which affect the flow of work—the officers, the sheriffs, and from natural disasters. As a result of water. others—is one such extraordinary expe- GDIN, the availability of critical dis- A positive example of data integra- rience, and it always humbles me to aster response, recovery, mitigation tion was in the 1996 fire in Mendocino, witness their courage and dedication and preparedness information is now California, in which data from the up close. They work long hours away greater than ever before. Landsat Thematic Mapper, Digital Ele- from their families, often at great per- Domestic disasters are estimated to vation Models, infrared scanners, infor- sonal risk, and endure low salaries and cost an average of $54.3 billion, causing mation from National Technical years of stress at work and at home to 510 deaths per year. International dis- Means, and field reports were used to make our lives safer and easier. And I, asters kill more than 133,000 people and assess fire damage, as well as the po- for one, wish to acknowledge the men cost more than $440 billion in property tential for erosion and new growth. Ad- and women of the Memphis Police De- damage. The added costs of widespread ditional information on rangeland, partment, and all law enforcement per- human suffering and political insta- wildlife habitats, and recreational sonnel in Tennessee and across Amer- bility are incalculable. needs were included to build a com- ica, for the selfless work they do. The current capabilities of GDIN are prehensive plan for re-vegetation re- We who work every day in this sym- impressive, but future capabilities and sulting in a plan by the U.S. Forest bol of democracy are fortunate, be- possibilities hold even greater promise. Service, which is estimated to have cause we get to know the men and GDIN’s development exemplifies the saved $250 million by more efficient women of the U.S. Capitol Police on a best international collaborative efforts planting. between government and industry and personal basis. We greet them every These are isolated examples. The pro- illustrates the innovation possible only day, we witness their dedication to gram, both nationally and internation- in this great technological age. Sur- duty, they inquire after us and our ally, is still in its infancy. The infor- prisingly, GDIN has received scant at- families, they become our friends. mation is there but the way to access tention by the American public or the Long after Officers Gibson and Chest- it is still a work in progress. Unfortu- media. nut were laid to rest, we remember nately, on the domestic front there has still their warmth and their many Prior to GDIN, there was no common approach to accessing a single source been a lack of support in some circles kindnesses, their lives and their heroic for this program. Such lack of support sacrifice. Unfortunately, other officers for the broad range of information needed for natural disaster reduction is deplorable. The need to find more ef- with just as much courage and dedica- fective ways to respond to disasters in tion to duty are not known by the peo- or aids to help integrate information from many diverse sources. Relevant the United States must be above par- ple they protect. But that does not tisan politics. mean they should be appreciated any information was difficult to locate or less. use effectively. Disaster managers We live in truly amazing times. And it is not just the people of their worldwide were consistently frustrated Rapid improvements in communica- communities who should appreciate by poor telecommunications and inad- tions, the Internet, space imagery, re- them. As the representatives of those equate infrastructure. mote sensing, global positioning tech- people in Washington, we also must In February 1997, Vice President nologies, and early warning forecasting recognize America’s police men and GORE wrote to key Federal depart- hold promise to continue to revolu- women for what they are—American ments and agencies requesting a feasi- tionize disaster management and heros—and do whatever we can to sup- bility study for establishing a global therefore save lives and reduce human port their efforts on our behalf. disaster information network, through suffering in very significant ways. f the integration of the Internet and other emerging technologies, to im- f GLOBAL DISASTER INFORMATION prove preparedness and responsiveness NETWORK to natural or environmental disasters. ORGANIZED LABOR AND PNTR— Mr. AKAKA. Mr. President, I rise to A Federal task force was formed to ex- NOT A MONOLITHIC APPROACH commend employees of the many Fed- plore public/private partnerships to eral departments and agencies respon- make the concept a reality. In April Mr. ABRAHAM. Mr. President, a sible for the impressive preliminary 2000, President Clinton issued Execu- week ago I met with a national work- work on establishing a Global Disaster tive Order 13151, formally creating force coalition of unions that came out Information Network, GDIN. GDIN and setting operational objec- in support of establishing Permanent As a member of the Governmental tives. Normal Trading Relations with China. Affairs Committee, which authorizes A key objective of GDIN is to pro- I had encountered some of the labor the Federal Emergency Management mote the United States as an example leaders who belong to this coalition on Agency, FEMA, I take a keen interest and leader in the development and dis- several other occasions, including at in the way in which institutions in the semination of disaster information, the Republican National Convention in federal government respond to disas- both domestically and abroad, and to Philadelphia in August. I simply rise ters. I am struck by the tremendous seek cooperation with foreign govern- today to note for my colleagues that potential advanced technologies, in- ments and international organizations. organized labor in this country is not cluding satellite imaging, the World- Continued Federal leadership is essen- monolithic in their views on such mat- wide Web, and computer data systems tial to its continued success. The cre- ters as trade and protectionism. can play in improving our responsive- ation of a highly sophisticated and The members of the coalition I met ness to natural disasters. widely distributed knowledge base, en- with last week came primarily from Much of the credit is due to the vi- compassing common systems of meas- the aerospace industry in the Pacific sionary leadership of Vice President urements, methods of data visualiza- Northwest, building the jet airplanes, GORE for directing GDIN’s development tion and exploitation, information engines, and other aerospace sub- and for recognizing the potential for analysis, event forecasting, knowledge systems that are competing globally harnessing current day technologies in modeling, and data and information with the likes of Europe’s Airbus. How- an unprecedented and innovative way. management, remains key to success- ever, I have previously met members of GDIN represents a coordinated effort ful future development. this coalition that extend beyond the among the Nation’s federal disaster For example, in 1997, the region of aerospace industry and the Pacific agencies, intelligence agencies, the Na- Grand Forks, North Dakota suffered Northwest. They represent such tradi- tional Aeronautics and Space Adminis- losses greater than $400 million when tional manufacturing industries as tration, academia, and industry, and the Red River rose. In order to predict steel, aluminum, diesel engines, farm their international counterparts, to flood areas accurately, we need a sys- equipment, and rail locomotives. They October 3, 2000 CONGRESSIONAL RECORD — SENATE S9691 repesent a diverse array of the Amer- WTO’s rules and the agreement we Costello of Southern Pines competed in ican workforce—everything from pro- have negotiated with them. equestrian events. Tim Montgomery duction workers on the line to engi- But there are indeed unions—rank- and Jerome Young, both of Raleigh, neers and scientists. And they are from and-file members and leadership Lynda Blutreich of Chapel Hill and Me- across this great nation. alike—who see the opportunity pre- lissa Morrison of Kannapolis competed The message these union officials had sented by PNTR and allowing China in track and field. Charlie Ogletree of was that they understood that China into the WTO as a tremendous oppor- Columbia competed in sailing. Rich was a burgeoning market for U.S. ex- tunity for the United States to con- DeSelm of Charlotte swam in Sydney. ports. They understood that if the U.S. tinue to lead the world in productivity Calvin Brock of Charlotte represented did not approve PNTR for China that and in our economic strength. They are the United States in boxing. George we would not only lose the trade con- prepared to answer the challenge posed Hincapie and Fred Rodriguez both of cessions they have made to us under by the global economy and the opening Charlotte competed in cycling. Hunter this agreement, but we would also lose of China’s markets, and they recognize Kemper of Charlotte competed in the our ability to gain greater market ac- the benefits which will result if we are triathlon and Henry Nuzum of Chapel cess and share. And they understood leading the way into opening China to Hill competed in rowing. that the largest beneficiary of such an greater trade instead of sitting on the The United States should be proud of outcome would be our trade competi- sidelines allowing our trade competi- every athlete who competed in the tors in the European Community, in tors to reap all the benefits. Olympics. I am especially proud of the the rest of Asia, and in South America. We should not forget that the U.S. is North Carolinians who represented the They understood that one of the best a very diverse country and that no in- United States in Sydney, and I am ways to guarantee that American firms stitution—including organized labor— pleased to support this resolution with remain in the United States—employ- is a monolithic force. There are folks them in mind. ing American workers and bolstering on both sides of the issue, each feeling f our economic growth—was to eliminate very strongly and very sincerely that the existing trade barriers that have they are doing what is best for them NATIONAL CRIME PREVENTION served to up until now to freeze out our and their brethren. MONTH products or force U.S. companies to Mr. EDWARDS. Mr. President, I rise Mr. GRAMS. Mr. President, I rise move facilities over to China. today in support of Senator HATCH’s today to express my support for the Without removing these barriers and resolution commemorating our Olym- strong partnership between localities liberalizing trade between the U.S. and pic athletes for the spirit, enthusiasm and the federal government in pre- China, American firms seeking to com- and patriotism they displayed in Syd- venting crime across the United pete with their foreign competitors ney at the XXVII Summer Games. I am States. As my colleagues may know, would have every incentive to move proud to represent a state that sent to October is recognized as ‘‘National their factories and operations over to Sydney two of the nation’s most rec- Crime Prevention Month.’’ China. With PNTR and China’s entry ognizable athletes, Marion Jones and Earlier this year, the Federal Bureau into the World Trading Organization Mia Hamm, as well as numerous other of Investigation announced that seri- we increase the likelihood that Amer- athletes who valiantly competed in ous crime had declined nationally for ican companies will continue to remain these Olympic games. the eighth consecutive year. Although located in the United States. And that The nation’s eyes were on Marion many reasons for this promising news is good news for the union workers and Jones as she set out to win an unprece- can be cited, I believe the efforts of households in the state of Michigan dented five gold medals in Sydney. state and local governments have which will continue to produce a wide While Marion didn’t win five golds, she caused a reduction in crime rates. To array of goods that will be exported to made us all proud with her com- ensure continued success, the federal China. manding performance. She set a track government should not impose addi- As I pointed out in a statement I and field record by winning more med- tional mandates upon local commu- made on the floor supporting PNTR, als in a single Olympics than any other nities that will only prevent the devel- exports from Michigan to China in- woman in history. Her three gold and opment of effective crime prevention creased 25 percent between 1993 and two bronze medals have put Marion programs. 1998, and they have undoubtedly grown atop the track and field world. More During this session of the 106th Con- significantly greater since 1998. Ex- important than winning her events, gress, I am pleased to have worked ports to China from businesses located Marion accepted each of her medals with Minnesota’s public safety officials in the Flint and Lansing areas grew by with grace and style, epitomizing what on a number of crime and drug abuse 84 percent during that period. Mean- Olympic competition is all about. prevention initiatives. Most impor- while, exports to China from Kala- Mia Hamm has captivated children tantly, I am pleased that the Fiscal mazoo and Battle Creek grew by an ex- and adults alike with her charisma and Year 2001 Commerce, Justice, State Ap- traordinary 353 percent! Not all of that passion for the game of soccer. Thou- propriations bill includes $4 million for business is going to union shops, but sands of girls across North Carolina the State of Minnesota to develop a certainly a significant portion of it is, take to the soccer fields in hopes of statewide computer network that will and that sort of expansion in trade being the next Mia Hamm. Watching provide judicial and law enforcement with China is going to benefit all work- Mia play in Sydney, I understand why. agencies with universal access to crit- ers and businesses in Michigan—union In the women’s soccer semifinals ical information about criminal offend- and non-union. against Brazil, Mia was pushed, shoved ers at the time of their arrest, prosecu- Clearly the majority of unions and and thrown to the ground time and tion, sentencing, and during other im- union members in this country opposed time again. She did not once complain, portant proceedings. Information is the PNTR for China. I heard from and letting her actions speak louder than key to an effective and accountable spoke with many, many such workers words by scoring the only goal of the criminal justice system. The Min- from Michigan—both back in Michigan match. The United States Women’s nesota Legislature recently enacted and when the unions have come out to Soccer team went on to claim the sil- legislation, known as ‘‘Katie’s Law,’’ Washington, DC, to meet with their ver medal, led by other Tar Heels such that provides state funding for the de- representatives in Congress. I come as goal keeper Siri Mullinix of Greens- velopment of this initiative. from a union background and grew up boro and Carla Overbeck of Chapel Hill. I also believe it is essential that Con- in a union household. I took their con- I am also extremely proud of other gress do more to ensure that anti-drug cerns very seriously in weighing the North Carolinians who competed in resources reach the areas of our coun- many issues that went into my ulti- Sydney. While these athletes haven’t try where drug abuse and crime is on mate decision to vote for PNTR. And I received the attention Mia Hamm and the rise and the anti-drug resources of have pledged to hold China accountable Marion Jones have, they are equally state and local law enforcement have for their future behavior and to fulfill important and should be commended been seriously strained. That is the sit- their trade obligations under the for their accomplishments. Robert uation facing law enforcement agencies S9692 CONGRESSIONAL RECORD — SENATE October 3, 2000 in my home state that have worked to have sent a strong message to crimi- process will allow for full and open de- combat methamphetamine production nals that our neighborhoods are orga- bate on the placement of dredge spoils and trafficking throughout our com- nized and fighting back against the from the project. We certainly cannot munities—particularly in rural areas. threat of crime. Similar to the TRIAD overlook the importance of protecting For more than a year, I have been seniors crime prevention program, Na- and minimizing the impact on our en- working to address the rising meth- tional Night Out encourages increased vironment, especially the impact on amphetamine drug epidemic in Min- citizen interaction with law enforce- our fisheries. nesota by having Minnesota designated ment officers to prevent crime. I will As we move into the heating season, as a High Intensity Drug Trafficking continue to be a strong advocate in funding Environmental Impact State- Area, HIDTA. This designation will Congress for the National Night Out ments for Providence Harbor dredging provide additional anti-meth resources and TRIAD programs. projects cannot be overstated. Specifi- to Minnesota and ensure better coordi- I am proud of the active involvement cally, until dredging Providence Har- nation of federal-state-local efforts at of our citizens in developing innovative bor is completed, deep draft vessels defeating this threat to public safety. I crime prevention initiatives. Their carrying precious heating oil to Rhode am pleased that the Fiscal Year 2001 commitment to ensuring safer streets Island and other points in the North- Treasury-Legislative Branch Appro- and safer communities throughout our east will have to continue the dan- priations bill includes funding for new state has made Minnesota a better gerous and inefficient practice of off- HIDTA designations, and a directive to place to work and a better place to call loading their cargoes into small barges, the Office of National Drug Control home. in the middle of Narragansett Bay, for Policy that Minnesota must be among f delivery to the pierside terminals in the first states considered for HIDTA Providence Harbor. Anyone who has CONFERENCE REPORT ON THE FY designation in the upcoming fiscal experienced the fury of winter wind, 2001 ENERGY AND WATER DE- year. ice, and rough waters on the Narragan- VELOPMENT APPROPRIATIONS My rural crime prevention agenda sett recognizes this practice is an acci- BILL has included strong support for S. 3009, dent waiting to happen—one with dis- the ‘‘Rural Law Enforcement Assist- Mr. L. CHAFEE. Mr. President, I astrous consequences. ance Act of 2000.’’ The value of this leg- would like to share with my colleagues While I voted in support of the con- islation was brought to my attention my views on several items contained ference report last night, I was dis- by St. Cloud State University Pro- within the energy and water conference appointed to find that the Missouri fessor John Campbell and several Min- report. River provision I objected to during nesota police chiefs and sheriffs. I The FY 2001 Energy and Water Ap- Senate consideration of the bill was greatly appreciate having the benefit propriations conference report includes not removed during conference. I firm- of their expertise. The Rural Law En- $24 billion in funding for the Depart- ly object to this provision which would forcement Assistance Act would pro- ment of Energy, civil projects of the block funding for consideration of one vide funding to the National Center for Army Corps of Engineers, the Depart- of the alternatives to the Missouri Rural Law Enforcement to expand the ment of Interior’s Bureau of Reclama- River Master Water Control Manual. technical assistance and training avail- tion, and a number of independent The targeted alternative would require able to rural law enforcement per- agencies. I understand the difficulty of seasonal river flow changes along the sonnel. As a cosponsor of this bill, I am reaching a consensus on such a com- Missouri River in order to recover hopeful that rural Minnesota will soon prehensive bill. I would like to thank three endangered species including the establish a regional center that will the Managers of the legislation for all pallid sturgeon, interior least tern, and bring the benefits of these programs to their hard work in reaching this con- piping plover. During my past year in our state. sensus. the Senate, I have voted to remove en- During National Crime Prevention I am particularly pleased with the vironmental riders such as this one Month, it is also important to note the nearly $4 million in funding included in from appropriations bills. In my view, impact the Violence Against Women the bill for a number of important the Missouri River provision inappro- Act, VAWA, has had upon the rate of Rhode Island coastal restoration and priately transfers the decision regard- domestic abuse, stalking, and sexual water development projects. The bill ing endangered species protection assault across the nation. Since its en- contains $1.95 million in funding for au- along the Missouri River from the actment, the VAWA has provided thou- thorized repairs to the Fox Point Hur- Army Corps of Engineers and the au- sands of communities with assistance ricane Barrier. Since its construction thorizing committees to the Senate to develop innovative and effective pro- in 1966, the barrier has provided crit- and House Appropriations Committees. grams that have contributed toward ical flood protection to the City of I was one of two Republican Senators protecting individuals from sexual of- Providence. The bill contains $191,000 that voted in favor of an amendment fenses and domestic abuse. for Rhode Island Ecosystem Restora- offered by Senator DASCHLE and Sen- In Minnesota, domestic violence shel- tion to assist the Army Corps of Engi- ator BAUCUS to strike this provision ters and centers have improved their neers and the Rhode Island Department during Senate consideration of the FY services to victims of sexual, emo- of Environmental Management to re- 2001 Energy and Water Development tional, and physical abuse through store degraded salt marshes and fresh- Appropriations bill. When the vote such important programs as the Rural water wetlands, improve overall fish failed, however, I voted in favor of the Domestic Violence and Child Abuse En- and wildlife habitats, and restore legislation because of its important forcement Grant program and funding anadramous fisheries. The bill also funding for Rhode Island. The FY 2001 to combat violence against women on contains $54,000 for South Coast Ero- Energy and Water Development Appro- university campuses. Additionally, sion to complete feasibility study work priations bill, and the Missouri River many domestic abuse victims have on potential coastal protection provision contained within, passed benefited from the counseling and projects along the southern coastline overwhelmingly in the Senate by a guidance provided through the Na- of Rhode Island. vote of 93 to 1. tional Domestic Violence Hotline es- Additionally, the bill contains The legislation still has a probable tablished under the Violence Against $584,000 in funding for the final Envi- Presidential veto. I am hopeful we will Women Act. I am proud to be a cospon- ronmental Impact Statement and de- be able to revisit the Missouri River sor of legislation to reauthorize the Vi- sign work associated with maintenance provision before the end of this session, olence Against Women Act and expect dredging of the Providence River and and ensure its elimination from the that this legislation will be passed be- Harbor federal navigation channel. The legislation. fore the 106th Congress adjourns. proposed maintenance dredging project f Finally, I commend the dozens of involves the removal of approximately Minnesota cities that are active par- four million cubic yards of material THE VERY BAD DEBT BOXSCORE ticipants in the ‘‘National Night Out’’ from the Providence River and Harbor. Mr. HELMS. Mr. President, at the program. These neighborhood residents The Environmental Impact Statement close of business yesterday, Monday, October 3, 2000 CONGRESSIONAL RECORD — SENATE S9693 October 2, 2000, the Federal debt stood written two books about the Maine is Villa Tragara in Waterbury Center. at $5,661,548,045,674.53, five trillion, six Veterans Memorial Cemetery in order My family and I have gone there for so hundred sixty-one billion, five hundred to raise funds to preserve the ground many years and have become friends of forty-eight million, forty-five thou- for generations to come. To this day, Tish and Tony DiRuocco. When my sand, six hundred seventy-four dollars the proceeds from the sale of this book mother was alive, she knew that she and fifty-three cents. are still generating support for the could call Tony when the Italians won Five years ago, October 2, 1995, the cemetery association. I am proud that soccer matches and have someone she Federal debt stood at $4,987,587,000,000, a letter I wrote in support of his efforts could speak with in her native tongue, four trillion, nine hundred eighty-seven appears in the second edition of his while they both toasted Italy’s victory. billion, five hundred eighty-seven mil- book. Recently Debbie Salomon, Vermont’s lion. Nathaniel Cobb also initiated the foremost chronicler of epicurean de- Ten years ago, October 2, 1990, the ‘‘Garden of Remembrance’’ at the cem- lights, wrote about the DiRuocco’s Federal debt stood at $3,261,514,000,000, etery to honor those Mainers whose re- Restaurant and I ask that the article three trillion, two hundred sixty-one mains were never found. He was Sate from the Free Press be printed in the billion, five hundred fourteen million. Adjutant for the American Legion RECORD at this point.∑ Fifteen years ago, October 2, 1985, the twice, State Treasurer for 12 years, and The article follows: Federal debt stood at $1,823,105,000,000, State Chaplain for 6 years. He has [From the Burlington Free Press, Sept. 12, one trillion, eight hundred twenty- served on the Maine Veterans Home 2000] three billion, one hundred five million. Board and on the Veterans Loan Au- STRONG MARRIAGE IS SECRET INGREDIENT TO Twenty-five years ago, October 2, thority Board. It was an honor to work VILLA TRAGARA’S SUCCESS 1975, the Federal debt stood at with him on the fight to preserve (By Debbie Salomon) $553,269,000,000, five hundred fifty-three Maine’s only veterans hospital—the Behind every great restaurant chef/owner billion, two hundred sixty-nine million, Togus Veterans Administration Med- stands a spouse. If the spouse is a woman, which reflects a debt increase of more ical and Regional Office Center—as chances are she’ll put on a nice outfit, slap than $5 trillion—$5,108,279,045,674.53, well as other fundamental needs of on some makeup and stand in front taking five trillion, one hundred eight billion, Maine’s veterans. reservations, dispatching servers, running credit cards, remembering names, smoothing two hundred seventy-nine million, I congratulate Nate today as well as ruffled feathers and smiling, smiling, smiling forty-five thousand, six hundred sev- express my profound appreciation as an through aching feet, a throbbing head and enty-four dollars and fifty-three cents American for the lifetime of service sore back. during the past 25 years. and sacrifice he has rendered. He is That’s if the baby sitter shows up. f truly an effective and doggedly deter- That’s Tish DiRuocco. Tish and Tony mined advocate for veterans. DiRuoccco, owners of Villa Tragara in Wa- ADDITIONAL STATEMENTS I have nothing but the utmost re- terbury Center, are old-timers in an industry spect for those, like Nathaniel Cobb, where almost 75 percent of newcomers fail the first year. Villa Tragara recently cele- TRIBUTE TO NATHANIEL COBB who have served with courage, honor brated its 20th anniversary; in June, Tony and distinction when their country— ∑ Ms. SNOWE. Mr. President, I rise was named Restaurateur of the Year by and the world, no less—needed them so Vermont Lodging & Restaurant Association. today to recognize the extraordinary desperately. From World War II Should have been ‘‘Restaurateurs . . .’’ contributions of Nathaniel T. Cobb of through Korea, Vietnam, the Persian ‘‘Did you see (the Stanley Tucci film) ‘Big Waterville, Maine, to this great Na- Gulf, Bosnia, Kosovo, and numerous Night?’ Tish asks. ‘‘Tony’s like the chef and tion. other conflicts, freedom and democracy the brother is me.’’ Nate Cobb is a veteran of World War ‘‘They are a very strong family, a wonder- have survived because when the call to ful team,’’ says Joan Simmons of Craftsbury, II, where he served as a combat engi- duty came, our veterans were there to neer in the South Pacific and partici- a 20-year devotee, who celebrates most fam- answer. ily occasions at Villa Tragara, including her pated in the planning of six invasions It is because of them that we enjoy mother’s 90th birthday. during his tenure in the Army. Like so lives unfettered by oppression, in a de- Simmons describes their entrance: ‘‘You many brave Americans, he came home mocracy that stands as a blueprint— would have though Queen Victoria was arriv- after the war and continued to con- and a beacon—for people the world ing.’’ tribute to his country and community. over. It is because of them that we I thought of Tish as I watched Hadassah Lieberman’s rave at the Democratic Na- Over the years, Nate has generously stand at the vanguard of human rights, and selflessly reached out to fellow vet- tional Convention. The motto of these human dignity, and personal oppor- strong-willed spouse-partners seems to be erans and their families in need, work- tunity. Stand By Your Man and Help! ing to ensure that veterans receive the And as long as America remains a Perhaps Tish and Tony cling so tena- benefits they have earned and so richly beacon of hope, we must never forget it ciously to each other and their business be- deserve. To this end, Nate often de- is a beacon that shines with the bright cause getting there wasn’t half the fun. voted his weekends and evenings to light of all those, like Nathaniel Cobb, They met when 19-year-old Tish, a helping veterans, even as he worked who sacrificed for the principles for Montrealer, lived with a family in Switzer- land to improve her French. The small Swiss full time for the Waterville Morning which America stands. We may hardly Sentinel newspaper in Waterville, town had only one nightspot. Tony—born know where to begin in reconciling a and educated in Capri, Italy—was the showy Maine for almost 40 years. debt to them that can never be fully re- bartender. In the 1960’s Nathaniel Cobb dem- paid. but we know we can do no less ‘‘He threw bottles into the air and caught onstrated impressive foresight in pro- than to try our very best. them.’’ Tish recalls, still misty-eyed at 48. ‘‘I posing the idea of a veterans cemetery In that light, it is truly an honor to had no money but he made me the perfect to former Senator Margaret Chase congratulate Nate Cobb on a life of ac- drink at the perfect price. Smith, who worked with him to estab- complishments and contributions to They fell in love. Tony followed her back lish—in Maine—the first state veterans to Montreal. They married in 1976. this country of which he should be Tish’s family had a ski house in Vermont. cemetery in the entire country. rightfully proud. He is a credit to Her dream was to live here, despite Tony’s As State Adjutant of the American Maine and the Nation and a true Amer- growing success in cosmopolitan Montreal. legion at the time, he presented the ican hero in every possible sense of the They scoped out the Italian restaurant scene resolution calling for a veterans ceme- world. Thank you, Mr. President.∑ in the Stowe vicinity and decided a market tery to the State legislature, which ap- f existed for Tony’s painstakingly elegant proved it unanimously. Not only that, (pasta, bread, desserts made in-house) North- but he worked tirelessly to secure WATERBURY CENTER’S VILLA ern Italian preparations. They found a funding for the cemetery, which was TRAGARA charming 1820 farmhouse on Vermont 100 in ∑ Waterbury Center, which became the res- dedicated in 1970, and later helped es- Mr. LEAHY. Mr. President, one of taurant. Tish’s parents helped financially, tablish a chapel there as well. the joys in living in a State as small as but the complications of non-citizens open- Nate’s achievements also extend into Vermont is that you get to know where ing a business in the United States would fill the realm of the written word, having all the treasures are. One such treasure the phone book. S9694 CONGRESSIONAL RECORD — SENATE October 3, 2000 ‘‘We were young and naive,’’ Tish admits. Nation has to offer. They are the Wolfe Middle School, whose dedication Add ‘‘fanatically hard-working’’ The schools that set the standard for which to making her school one of the finest charming location proved less than ideal, others strive. I am very proud to report in our Nation has been instrumental in since vacationers driving north to Stowe that nine of the 198 Blue Ribbon creating this community. On behalf of didn’t want to drive back for dinner. ‘‘We had to be creative the first 10 years, Schools named by Secretary Richard the entire United States Senate, I con- until word-of-mouth got around, ‘‘Tony says. W. Riley for 1999–2000 are located in the gratulate Wolfe Middle School on being Finally, the Stowe Montrealers who had State of Michigan, and I rise today to named a Blue Ribbon School for 1999– adored Tony’s cuisine at home rediscovered recognize Wolfe Middle School, in Cen- 2000, and wish the school continued him and oh, did he cater to their tastes. ter Line, Michigan, one of these nine success in the future.∑ ‘‘They want it special, not off the menu,’’ he schools. f says. The hope of the Center Line Public ‘‘Tony’s so intent on pleasing that he’s School system is that their schools will THE END OF AN ERA flexible to a fault,’’ Tish adds. ∑ But bumps along the way, including an ex- become places where ‘‘every person Mr. FEINGOLD. Mr. President, I was hausting foray into retail refrigerated pasta will be a teacher, every teacher will be born in 1953, the same year that major that Tish delivered to gourmet shops be- a leader and every student will be a league baseball made its way back to tween caring for two children and running success.’’ To this end, Wolfe Middle Milwaukee. I grew up with County Sta- Villa Tragara, might have derailed a less- School is a shining example. Its mis- dium and the countless memories it committed couple. The Stowe restaurant sion statement lays out the following produced. scene was exploding with competition. Atti- goals: first, to teach students the When the stadium and I were just six tudes toward food were changing. ‘‘We were knowledge and understanding embed- years old, Milwaukee County bore wit- a sinking ship but we were going down fight- ing,’’ Tish admits. Once, things got so bad ded in the Michigan core curriculum; ness to one of the most dramatic games they closed the door and fled to Martha’s second, to help students explore their in baseball history. Pittsburgh’s Har- Vineyard for a week. elective areas of interest; and, third, to vey Haddix, pitched 12 perfect innings Tony was forced to make changes, to light- help students as they make the transi- and lost both the no-hitter and the en sauces with vegetable purees, to initiate tion from childhood to adolescence. game to Milwaukee in the 13th. cabarets, dinner theater, jazz, a moderately Wolfe Middle School has been success- When the stadium and I were eight priced tapas menu and early-bird discounts. ful in these areas because of the team- years old, the legendary Warren Spahn Redecoration turned the farmhouse—par- work that has developed, not only had a spectacular year. He became the ticularly the mountain-view solarium—into a lively, informal trattoria. Herbs grow among faculty and administrators, but second oldest pitcher to throw a no-hit- along the path to the front door; zucchini also between parents and community ter and became only the 13th pitcher in clog the compost-enriched garden plot out members. history to win 300 games. back. This teamwork is best represented in When the stadium and I reached 20, And, somehow, their marriage has not only planning teams, groups which involve the Green Bay Packers won their very survived, but flourished. How? ‘‘We drop the staff, parents and community mem- first Monday Night Football game. restaurant when we go home,’’ Tish says. ‘‘If bers. These teams meet regularly in a Wisconsinites never forget the last we have an argument, it keeps until the next constant effort to evaluate, improve game the Packers played at county day.’’ Watching them you fee the connection. and enact goals and objectives which stadium nearly six years ago today. ‘‘She is my partner, 120 percent,’’ Tony af- will continue to move Wolfe Middle On the year of our nation’s bicenten- firms, touching Tish’s shoulder. They have School and its students in a positive di- nial, when the stadium and I were 23, led student tours to Italy. They provide food rection. In addition to planning teams, Hank Aaron hit his 775th and last ca- for Odysesy of the Mind and March of Dimes daily teacher team meetings take place reer home run there. His home-run hit- events. On Christmas, Tony contributes in which plans are devised for class- ting presence and uncanny style added lasagna (of all things) to a Christmas dinner room instruction, grade level activities so much to County Stadium and the at a Waterbury church and donates food to a and professional development. There is aura that surrounded him will never be retirement home. No wonder, in March of 1999, Tony was one an unwavering rule that guides both forgotten. of 59 restaurateurs worldwide (nine in the planning teams and teacher teams: all When the stadium and I reached the U.S.) to receive the Insegna Del Ristornate programs must be dedicated to helping age of 45, it was at County Stadium Italiano, which honors chiefs who leave Italy Wolfe students develop academically, that Mark McGwire and Sammy Sosa but ‘‘keep the good name alive.’’ socially and emotionally. both hit their 65th home runs. The award was presented by Italian presi- In recent years, school improvement And finally, at our ripe age of 47, we dent Oscar Scalfaro. The Pope recognized the has focused largely around the premise must say farewell. Fortunately, its honorees during a public audience. that every student should leave Wolfe Simmons was happy but not surprised at great and storied past will always be in the recognition. ‘‘When you walk in that computer literate. The school has two our memories. I look forward to shar- door you feel special. Tony and Tish are computer labs, as well as a computer in ing with my family and Brewer fans genuinely glad to have your business,’’ she every classroom. Laptop computers are across the state, the many new thrill- says. The Simmonses drive almost an hour available to take home from the new ing baseball moments that await us at once a month to eat at Villa Tragara. ‘‘I’m a Media Center which allow students to Miller Park.∑ schoolteacher, not a rich woman, but we do computer homework. In 1999, a f would rather eat at a place we know is Technology Education Laboratory was good.’’ completed which boasts a robotics MONTANA OLYMPIANS Because, Simmons concludes, ‘‘Anything ∑ else is going out to get some food. This is area, audio and video production stu- Mr. BURNS. Mr. President, I would going out to dinner.’’ dios, and a computer animation sta- like to take this opportunity to recog- What a nice story.∑ tion, making it among the most ad- nize the achievements of two native f vanced laboratories in the Midwest. It Montanans, Mrs. Monica Joan Tranel- is important to note that providing Michini, and Mrs. Jean Foster. WOLFE MIDDLE SCHOOL NAMED students with the opportunity to work Mrs. Tranel-Michini is a Billings na- 1999–2000 BLUE RIBBON SCHOOL with computers is part of an overall tive who competed recently in the Syd- ∑ Mr. ABRAHAM. Mr. President, in plan to encourage their participation ney Olympics. She not only qualified 1982, the United States Department of in other areas of education and social for the finals of the women’s single Education initiated its Blue Ribbon interaction—it is not an end in itself. sculls, a rowing event, but she also Schools Program. In each year since, I applaud the students, parents, fac- placed sixth in the event. Six is a the Department has recognized schools ulty and administration of Wolfe Mid- magic number for Monica, because she throughout the country which excel in dle School, for I believe this is an is the sixth of ten brothers and sisters. all areas of academic leadership, teach- award which speaks more to the effort She and her family grew up on a cattle ing and teacher development, and of a united community than it does to ranch just outside of the city limits of school curriculum. In other words, the work of a few individuals. With Billings, Montana. Before the age of Blue Ribbon Schools are the finest pub- that having been said, I would like to twenty, this now established U.S. lic and private secondary schools our recognize Ms. Sue Gripton, Principal of champion and Olympic finalist had not October 3, 2000 CONGRESSIONAL RECORD — SENATE S9695 seen a body of water larger than her members of the AFMIO with an oppor- EULOGY FOR ELLEN GLESBY family’s irrigation pond. It was not tunity to explore new ways to expand COHEN until this accomplished woman at- upon the many beneficial things the or- ∑ Mrs. BOXER. Mr. President, I come tended law school in Philadelphia that ganization is already doing in this before you today to pay tribute to a she gained the passion for rowing. I sa- realm. staunch patient advocate whose dedica- lute this young woman, for her proud The AFMIO is an umbrella organiza- tion and commitment to biomedical re- representation of the sport of rowing, tion which represents various Indian search has changed the lives of all the country, and the state of Montana. Muslim Associations. It has chapters around her. Mrs. Jean Foster is another young Ellen Glesby Cohen was the Presi- woman from Bozeman, Montana whom throughout the world, and a member- ship which includes academicians, pro- dent and Founder of the Lymphoma I want to recognize. Joan’s career in Research Foundation of America shooting was paved a little better than fessionals, entrepreneurs and social ac- tivists. The mission of the organization (LRFA). Ellen founded this organiza- Monica’s. Jean is from a family with tion almost ten years ago after she was world championships in shooting under is the educational and economic upliftment of Indian Muslims by seek- diagnosed with a slow growing form of their belt, her mother being a world non-Hodgkin’s lymphoma (NHL). ing cooperation among the American champion in rifle shooting, and her fa- Ellen, being the courageous person and Indian relief and educational orga- ther a two-time Olympian and a USA she was, decided to turn her experience nizations. hall of famer in shooting. Jean rep- into something positive by establishing resented our state and our country The AFMIO stands for a stable demo- the Lymphoma Research Foundation with distinction in the 3-position rifle cratic, secular and progressive India, that is the nation’s first and foremost event. I congratulate Jean on the effort where the human rights of all citizens, organization dedicated to promoting she put forth and on her and her fam- regardless of caste, religion, language and funding lymphoma-specific re- ily’s commitment to the sport of shoot- or region, are preserved. The organiza- search. ∑ ing. tion works in close cooperation with Ms. Cohen’s efforts on behalf of f others that believe in these same prin- lymphoma-specific research has led to S.C. AWARDED PAN AM GAMES ciples, and thus serves as a bridge be- the Lymphoma Research Foundation FOR THE BLIND tween Indian intellectuals, public offi- awarding close to $3 million to support 92 lymphoma research projects at top ∑ Mr. HOLLINGS. Mr. President, it is cials and business people, and Indian universities and cancer centers with great pleasure that I recognize Americans, particularly Muslims. throughout the nation. Spartanburg, South Carolina and the The highest priority of the AFMIO The foundation Ms. Cohen founded South Carolina School for the Deaf and continues to be the eradication of illit- has been active not only in funding re- Blind as hosts of the 2001 Pan Amer- eracy among Indian Muslim children, a search, but has helped educate the pub- ican Games for the Blind. This is not goal which goes hand in hand with lic about the high incidence rates of only a distinguished honor for bridging the digital divide. Access to a non-Hodgkin’s lymphoma by spear- Spartanburg and for the school, but computer can upon up new worlds for heading such initiatives as the Na- also for our state and our nation. Three children, and ensure that they are not tional Lymphoma Awareness Week hundred blind and visually-impaired only literate in the traditional sense, during the second seek of October and elite athletes from 22 countries will but culturally literate as well, which I an annual Lymphoma Advocacy Day compete in the third Pan Am Games think is equally important. In this re- on Capitol Hill. for the Blind May 29–June 3, 2001 in gard, AFMIO has already done a great I have been particularly impressed by Spartanburg. It marks the first time deal. Its grassroots mobilization and Ms. Cohen’s passion on behalf of that these Games have been held in the motivation program is termed as one of lymphoma patients and, consequently, United States. Previous competitions the most successful education pro- have supported increasing the funding took place in Buenos Aires and Mexico grams in India. for lymphoma research at the National City. Athletes will compete in track and AFMIO has also done much to aid In- Institutes of Health and the Centers for field events, swimming and goal ball, a dian Muslims on other fronts. The or- Disease Control and Prevention. team sport developed specifically for ganization has financed several Ellen is survived by her husband Dr. the blind. Two students at the S.C. projects which draw on the resources of Mitchell Cohen and her two children School for the Deaf and Blind, Royal local communities and aim for the eco- Hailey and Josh. While the last decade Mitchell and Sonya Bell, will represent nomic upliftment of these communities of Ellen Cohen’s life was dedicated to the United States in track and field by teaching citizens how to employ lymphoma research, Ellen’s accom- events. these resources. Through programs of plishments as a mother and a wife will The International Blind Sports Asso- political education and awareness, the forever be remembered even after the ciation selected the S.C. School for the organization has united forces that day comes that non-Hodgkin’s lymphoma has been eliminated. Deaf and Blind as the site for the 2001 have similar beliefs of social justice Although Ellen’s work has already Games because of its excellent facili- and the upliftment of all people. Fur- benefitted thousands across the coun- ties and the strong credentials of the thermore, it has been responsible for try diagnosed with non-Hodgkin’s athletic staff. Since its founding in establishing several hospitals and or- lymphoma and other cancers, I know 1849, the school has served South Caro- phanages, and has organized relief that she would like us all to continue lina well and proven itself worthy of work at times of natural disasters. this latest distinction. I wish all the her fight against this devastating dis- I applaud the AFMIO for all of the participants in the 2001 Pan American ease by supporting such worthy organi- wonderful work it has done to improve Games for the Blind much success.∑ zations like the Lymphoma Research the living conditions of Indian Mus- Foundation of America. f lims. A large part of this success stems Despite the fact that Ellen is not 10TH ANNUAL CONVENTION OF from educational programs which have here physically, her spirit will con- THE AMERICAN FEDERATION OF been incredibly successful, and I am tinue to live on through her family and MUSLIMS OF INDIAN ORIGIN sure the discussion this weekend will friends. Thank you Ellen for what you ∑ Mr. ABRAHAM. Mr. President, I rise focus upon how these programs can be gave to persons everywhere. You will today to recognize the American Fed- even further adapted and improved in truly be missed.∑ eration of Muslims of Indian Origin this Digital Age. On behalf of the en- f (AFMIO), which will hold its 10th An- tire United States Senate, I extend a nual Convention on October 7–8, 2000 in much deserved thank you to the Amer- NOVI HIGH SCHOOL NAMED BLUE Southfield, Michigan. The theme of the ican Federation of Muslims of Indian RIBBON SCHOOL FOR 1999–2000 convention is ‘‘Information and Tech- Origin, and wish the organization con- ∑ Mr. ABRAHAM. Mr. President, in nology: The Digital Divide,’’ providing tinued success in the future.∑ 1982, the United States Department of S9696 CONGRESSIONAL RECORD — SENATE October 3, 2000 Education initiated its Blue Ribbon and faculty to continue to provide a Montpelier, Vt., population of roughly 8,000. Schools Program. In each year since, better education to the students of The store, which sells out-of-print movie the Department has recognized schools Novi High School. The staff firmly be- soundtracks, among other goodies, has had throughout the country which excel in lieves that a quality education pro- its ups and downs, but in 1998, as Internet music distributors like CDNow and MP3.com all areas of academic leadership, teach- gram is never static; rather, it contin- exploded in popularity, Mr. Wilber began to ing and teacher development, and ually needs to be adapted and improved worry that the Web would be his Waterloo. school curriculum. In other words, as new resources and different methods His answer was to build his own Web site Blue Ribbon Schools are the finest pub- of teaching become available. This (www.bsmusic.com). Designed by his brother lic and private secondary schools our willingness to adapt has been instru- and lacking time-saving features like one- Nation has to offer. They are the mental in the success of Novi High click shopping, it is hardly slick. But it has schools that set the standard for which School, and I am sure will continue to been successful. others strive. I am very proud to report In the year and a half since the site went be instrumental as the school leads into service, Mr. Wilber says overall sales that 9 of the 198 Blue Ribbon Schools other high schools, not only in the have jumped 10 percent. Just as important, named by Secretary Richard W. Riley State of Michigan but throughout the he estimates, the Internet has expanded his for 1999–2000 are located in the State of country, into the future. customer base by some 20 percent. It turns Michigan, and I rise today to recognize I applaud the students, parents, fac- out that Mr. Wilber’s peculiar tastes have Novi High School in Novi, Michigan, ulty and administration of Novi High been strengths on the Web. When the site one of these nine schools. School, for I believe this is an award was recently sent an e-mail message request- ing the score from ‘‘Gordy! The Little Pig In the past 30 years, enrollment at which speaks more to the effort of a Novi High School has grown from ap- That Hit It Big!’’ a 1995 movie, he simply united community than it does to the took it off the shelf and shipped it. proximately 360 students to 1,577 stu- work of a few individuals. With that ‘‘It is not easy e-commerce,’’ Mr. Wilber dents. This is representative of the having been said, I would like to recog- said of his Web site. ‘‘But we are not trying changing shape of the City of Novi dur- nize Dr. Jennifer Putnam Cheal, Prin- to compete with Amazon. We focus on our ing this time period, as it has evolved cipal of Novi High School, whose dedi- own niche.’’ from a rural crossroads to a thriving cation to making her school one of the To many experts, the advent of the Inter- net seemed to signal a grim future for mom- Detroit suburb. To deal with the influx finest in our Nation has been instru- of students, in 1996 Novi High School and-pop retailers. Increased competition and mental in creating this community. On the availability of a diverse array of mer- concluded a renovation which had behalf of the entire United States Sen- chandise to populations that had been essen- lasted for 30 months and added over 40 ate, I congratulate Novi High School tially captive audiences threatened to erode percent to the original facility. The on being named a Blue Ribbon School their customer base. school now covers 382,000 feet on three for 1999–2000, and wish the school con- But a survey of more than 1,500 businesses levels, and includes state of the art in- tinued success in the future.∑ in 16 downtown commercial districts nation- structional areas, science labs, a media wide, released earlier this month by the Na- f center, physical education and fine art tional Trust for Historic Preservation, indi- complexes, and telecommunications cates that the Internet can spur sales in IN PRAISE OF FRED WILBER, storefront retail businesses. Just as they systems. All classrooms have e-mail BUCH SPIELER AND compete in the brick-and-mortar world and Internet access as well as voice CYBERSELLING IN VERMONT against big-box enemies like Wal-Mart communications and two-way inter- ∑ Mr. LEAHY. Mr. President, I want to Stores and Home Depot, small retailers seem active video within and between dis- to do best in the virtual world by focusing on congratulate Fred Wilber from my trict buildings. unusual products or aiming to give excellent, The administrators and faculty of hometown of Montpelier, Vermont on personalized customer service. Novi High School are committed to his cyberselling success. The National Trust is a nonprofit organiza- providing their students with a well- For the last twenty-seven years, Fred tion that develops programs to support and maintain historic downtown areas. And be- rounded educational program, includ- Wilber has owned Buch Spieler, a music store in downtown Montpelier. cause the survey canvassed only merchants ing a rigorous academic schedule, a va- in towns where some revitalization of his- riety of extra-curricular and athletic Recently the New York Times reported on Buch Spieler’s growing sales from toric downtown areas in under way, the Na- programs, and an active student lead- tional Trust said its results probably over- ership program. This commitment led its Internet site at http:// state the positive impact of the Web on all to a two-year, teacher-led initiative of www.bsmusic.com. Mr. President, I ask small businesses. Even so, the news was sur- research and review of outstanding that the full text of the New York prisingly upbeat. The trust’s survey, one of the first in the international high schools. Following Times article of September 22, 2000, ti- tled ‘‘The Opposite of Amazon.com,’’ be nation to examine the impact of e-commerce this process, Novi High School restruc- on small retailers, found that some 16.4 per- tured into a four-block class schedule printed in the RECORD at the end of my remarks. cent of Main Street businesses it polled were so that students would be allowed ac- already using the Internet to sell things. cess to a broader range of curriculum The success of Fred Wilber is a shin- Further, the survey found, merchants that and would also be able to take advan- ing example for all Vermont small sell online—with most of them starting their tage of the new technology available business owners to follow. By taking Web sites only within the last 18 months— for their use. Perhaps more impor- advantage of the new markets offered have experienced a 12.8 percent increase in by the Internet for its goods and serv- overall sales. On average, 14.3 percent of tantly, the review and realignment of their total sales are now attributable to the the curriculum led to a transformation ices, Buch Spieler has increased overall sales by 10 percent and expanded its Internet. of instructional strategies, from tradi- Small, specialized businesses ‘‘are really customer base by 20 percent in the last tional lecture to interactive, higher- starting to gravitate toward the Web,’’ said order thinking and application-assess- year and a half. For years we Kennedy Smith, director of the National ment which have redefined the entire Vermonters have complained about not Trust’s Main Street Center. ‘‘The thing that education program of Novi High having access to a major market to sell was a surprise was the extent to which it was School. our goods. Now through the Internet, helping them.’’ For a struggling storefront we can sell our goods in the blink of an operation, a 5 percent increase in sales can Novi High School has received many make the difference between shutting its awards, including the ‘‘What Parents eye to anyone in the world as Fred Wil- ber and Buch Spieler have shown. doors or staying open, Ms. Smith said. Want’’ award from SchoolMatch for The news about small storefront retailers seven consecutive years (1993–99), a I commend Fred Wilber for being a presents a stark contrast to larger, purely e- Gold Medal District Rating by Expan- cyberselling leader and tapping into commerce retailers. Many experts once sug- sion Management Magazine for three the Internet’s world markets. gested that even individual entrepreneurs years (1996–98), and in 1999 U.S. News The article follows: working out of homes and garages—selling and World Report selected it as one of [From the New York Times; Sept. 22, 2000] everything from books to bow ties—would prosper on the Internet as barriers to entry THE OPPOSITE OF AMAZON.COM the top 96 ‘‘Outstanding American High were eliminated. But as it has turned out, Schools.’’ Being named a Blue Ribbon (By Leslie Kaufman) while several of these pure e-retailers had School for 1999–2000 is reflective of a For 27 years, Fred Wilber has run a quirky jumps in sales initially, they are now strug- desire on the part of administration music store called Buch Spieler in downtown gling to make money as the challenges of October 3, 2000 CONGRESSIONAL RECORD — SENATE S9697 marrying cyberspace and the real world have nificant portion of its total sales, and now ergy companies, Cox Oil and Gas. He become clear. Hundreds of these operations gets some 30 percent of its new customers has translated his success into a strong are now cutting back or going out of busi- online with no advertising. record of public activism, joining the ness entirely. The key to the success of Hi-Fi Sales is boards of the Salvation Army, the Established name-brand retailers, so-called making sure it is visible. ‘‘We spend a lot of clicks-and-mortars, have also had their share energy making sure we come up high in the American Red Cross, the Texas Cancer of tribulations on the Internet. While many search engines,’’ said Jim Oade, one of the Society, and the Dallas Society for have recorded strong sales through their on- three brothers who co-own the business. Crippled Children. line arms, it has often come at enormous Each search engine has different rules for de- In 1978, recognizing his business acu- cost. To sustain the level of service associ- ciding in what order to list businesses re- men and boundless contributions to a ated with their stores, most big-name retail- lated to key words, he said. So one of the better society, Southern Methodist ers have had to do everything from hire new brothers, Doug Oade, devotes himself, among University renamed its business school workers to set up a separate warehouse oper- other things, to keeping current with the in his honor, and The Edwin L. Cox ation to handle the orders. rules and making sure the company’s Web There is no way to know exactly how many site (www.oade.com) has enough of the right School of Business is recognized as one small storefront merchants do business over key words to pop up swiftly when a consumer of America’s best. the Web, but their ranks are already in the wants audio products. In this Bicentennial year of the Li- tens of thousands and growing. As of May, The Oade brothers’ national customer base brary, Ed continues to give of himself some 29 percent of all American small busi- is still fairly unusual among mom-and-pop and to lead others in support of the Li- nesses—from retailers to public relations ventures. Most storefront retailers use the brary. He chaired the Council’s Bicen- firms—had Web sites, according to the Internet mainly for defending and cementing tennial Committee and mobilized Kelsey Group, a consulting firm specializing the relationship with customers they already Council members to participate in the in local advertising and e-commerce. That is have—a relationship that is very much under up from 23 percent in May of last year. siege by giant retailers. Library’s Bicentennial programs. He Of this Web-connected minority, almost Osborn Drugs in Miami (pronounced Mi- has also been a key member of the Li- half are selling goods over the Interent, ac- AM-a), Okal., has been a family drugstore for brary’s Trust Fund Board for the past cording to the Kelsey Group, which gets its 29 years. Since it started its Web site in 1996, 10 years. information from a survey of a national sales through the Interent have increased James H. Billington, the Librarian of panel of 600 businesses with fewer than 100 only about 5 percent a year, according to Bill Congress, has called Ed ‘‘one of the Li- employees. Osborn, who runs the store with his father. brary’s most valued friends.’’ His dedi- The use of the Web by small retailers is But more than 90 percent of the traffic on cation and service have made the Li- likely to accelerate because many larger the Web site comes from regular long-term companies, hoping that small businesses Osborn customers who just like to e-mail brary’s collections richer and its serv- could be revenue generators, have been in- their prescriptions in. ‘‘We view it as a way ices to the Congress and the Nation tensifying efforts to bring mom-and-pop to service customers we already have,’’ Bill more comprehensive than ever. All stores online over the course of the last year. Osborn said. ‘‘We are not trying to go public Americans are the beneficiaries of Last September, for example, Amazon.com as osborndrug.com.’’∑ Edwin L. Cox’s generosity in enriching started zShops, a service that allows small f one of our nation’s greatest institu- businesses to have a link to their products tions.∑ pop up when a visitor to Amazon clicks on a TRIBUTE TO EDWIN L. COX f relevant book or compact disc. A seller of ∑ spice grinders, say, could arrange for a link Mrs. HUTCHISON. Mr. President, I would like to recognize a great Texan THE ASSOCIATION OF CHINESE to appear every time a person clicked on a AMERICANS CELEBRATES 28TH book about Indian cooking. and great American, Mr. Edwin L. Cox Web developers of all sizes—from Microsoft and to call out his outstanding service ANNIVERSARY to tiny outfits run by a couple of a guys in to the nation through his support of ∑ Mr. ABRAHAM. Mr. President, I rise a college dorm—are offering small businesses the Library of Congress. On Thursday, today to recognize the Association of access to a range of Web services, from Web October 5th, The Library of Congress Chinese Americans, Detroit Chapter of site design to purchasing banner advertising. will be celebrating its bicentennial and In fact, the business of providing Web serv- the National Organization of Chinese ices to small operators has already become the 10th Anniversary of the James Americans, which will celebrate its competitive enough that many of the mom- Madison Council. The Madison Council 28th Anniversary with an Awards Cere- and-pop retailers said their entry costs had is the Library’s private philanthropic mony on October 7, 2000. The theme of been very reasonable. organization and, along with Council the evening is Unity, Collaboration and James and Mary DeFore, for example, own Chairman John W. Kluge, Ed Cox Strength, three things the ACA has a women and children’s store called Unique helped found and build the Council provided Michigan’s Chinese American Boutique in downtown Thomasville, Ga., a from a handful of members in 1990 to community since its inception in 1972. small city of about 20,000 people. They were doing a healthy side business in prom more than one hundred committed sup- The mission of the ACA is ‘‘to serve dresses, and decided that if they offered porters today. the Chinese American community in them on the Web they might attract rural Madison Council members have sup- the Greater Detroit area, and to pro- customers who could not get into town. So ported more than 200 Library projects mote the overall presence of Chinese last January, they hired a local service pro- since 1990. These gifts account for al- Americans.’’ In order to do this effec- vider, who for a few hundred dollars designed most half of all private gifts to the Li- tively, members laid out six goals for a simple but colorful Web site with the brary. Ed served as the first Vice- their organization: provide community catchy name Time for Prom Chairman of the Madison Council when services to people of Chinese heritage; (timeforprom.com). The site went live in February, and by it was founded in 1990, and became the promote the Chinese presence locally march the DeFores were getting up to 40,000 first Chairman of the Council’s Steer- and nationally through the political visitors to their Web site each month. By ing Committee in 1992. To support the system; make sure the voice of the Chi- June, they had nearly 500 orders for dresses Library in acquiring new and rare nese American is heard locally and na- that cost $150 to $200. And requests came not items, Ed and fellow Madison Council tionally; promote academic excellence just from rural areas in Georgia but also member Caroline Ahmanson formed in Chinese American youth; promote from Missouri and West Virginia and even the Acquisitions Committee, which has Chinese heritage through the arts; and Hawaii and Japan. ‘‘The biggest problem,’’ been instrumental in acquiring rare collaborate with other Chinese/Asian Mr. DeFore said, ‘‘was fulfilling all the or- ders.’’ and historically significant items for organizations. Despite not having a powerful brand name the Library. Ed also established the In its effort to achieve above and be- or being linked to a powerful portal like Edwin L. Cox American Legacy Endow- yond these goals, the ACA has become Yahoo or America Online, Time for Prom ment, which makes possible the pur- an active force within the Metropolitan shows that small retailers need not get lost chase of rare and important materials Detroit community. It operates service in the vast clutter on the Internet if they de- highlighting our history. and outreach centers in Detroit, War- velop a clear, arrow identity. Ed Cox’s long record of service to his ren and Plymouth which provide as- In fact, another Thomasville retailer, Hi- Fi Sales and Service, which specializes in country includes his duty in the United sistance to Chinese Americans in im- equipment for home theaters and live field States Navy, where he earned the rank migration matters, language classes, recording, did $1.9 million in business over of lieutenant. He left to begin building citizenship preparation, and registering the Web last year, which represented a sig- one of America’s great independent en- to vote. It sponsors a free health clinic S9698 CONGRESSIONAL RECORD — SENATE October 3, 2000 and activities in Detroit Chinatown for following his graduation from the FRANK ‘‘BUD’’ DANIELS the language and economically dis- United States Naval Academy, and cul- ∑ Mr. BURNS. Mr. President, the agri- advantaged. In addition, the ACA spon- minated his distinguished naval service cultural community across Montana sors many programs for the entire with tours of duty as Vice Chief of was saddened this month by the pass- community, including the Feed the Naval Operations and as NATO’s Su- ing of Frank Daniels. He was known to Homeless program, flood and emer- preme Allied Commander and Com- all of us as ‘‘Bud’’. gency disaster relief, and a bone mar- mander-in-Chief of the U.S. Atlantic He was born and raised on the north- row drive. Command. He retired from active duty ern high plains in eastern Montana. He The ACA provides young Chinese in August 1992. gave up to cancer and was 72. His Americans with the opportunity to Admiral Edney has shown valor and daughter wrote that he left us as quiet- meet people of their own heritage, but leadership throughout his 35 years of ly and gently as he walked across that also teaches them the benefits of a dedicated military service to his coun- well-balanced routine. Each year the newly cut stubble field to be with His try, and has been a positive role model Lord. organization sponsors camping trips, for countless sailors in the process. dancing parties, and basketball games. A life long devotion to improving the At the same time, the organization has His dedication to service and excel- lives of rural Americans and keeping sponsored annual High School Achieve- lence has not diminished since leaving farmers on the land he loved, which he ment Awards since 1984. These awards active duty, serving as a trustee of the valued so highly, led him to countless recognize seniors who have achieved Naval Academy Foundation and the areas of involvement and gained him academic excellence as well as involve- Association of Naval Aviation. For two the admiration of his peers. No man or ment and leadership in extracurricular years, he also held the distinguished woman ever gave so much to the Mon- activities. Scholarships funded by the Professor of Leadership chair at the tana Farmers Union than did Bud Dan- ACA and private donors are also pro- U.S. Naval Academy. iels. vided annually to Chinese Americans Admiral Edney was elected to the He participated in the three-year seeking higher education. board of directors of The Retired Offi- Kellogg Extension Program at Mon- Promoting Chinese heritage has al- cers Association in 1994. For the last tana State University which enabled ways been a fundamental goal of the two years, he served as TROA’s chair- him to visit far corners of the world ACA, as members strive not to let their man of the board, the position from and taking him to China in 1976. He be- proud ancestry be overlooked or forgot- which he is now retiring. lieved in the fraternity of agriculture. His interest in farming issues and ten. Events include celebrating Asian Through his stewardship, The Re- programs was generated and groomed American Heritage Month, promoting tired Officers Association continues to through the Montana Farmers Union. the Chinese New Year Commemorative play a vital role as a staunch advocate He was president of Montana Farmers stamps, and sponsoring or cosponsoring of legislative initiatives to maintain Union and vice president of National a plethora of cultural events. Recently, readiness and improve the quality of Farmers Union. He also served on the the ACA held a reception for Chinese life for all members of the uniformed Farmers Union Mutual Insurance Com- American author Helen Zia, and on service community—active, reserve, panies. September 9, 2000, the organization and retired, plus their families and sur- During his years of farming and serv- hosted the Michigan premiere of the vivors. documentary film, ‘‘We Served With ing, he founded the Rural Policy Insti- Pride,’’ which chronicles the effort of His tenure as chairman of TROA tute, established a cooperative cur- Chinese American soldiers during began simultaneously with my chair- riculum at Montana State University, World War II. manship of the Senate Armed Services and developed strong ties with farm I applaud the ACA on the wonderful Committee, and I am pleased to state groups in foreign countries. He had a work it has done in the Metropolitan that these two years have witnessed passion for travel as it was his edu- Detroit region. Since its founding in very substantial quality-of-life en- cation and his way to reach out to the 1972, the organization has encouraged hancements for active, reserve, and re- rest of the world that was crying for Michigan’s Chinese Americans to cele- tired service members and their fami- the technology and ways to feed a hun- brate both their Chinese heritage and lies. gry world. the lives they have found in the United Admiral Edney has been a strong We in Montana will miss him as he States. It has fought vehemently for supporter of the Senate Armed Serv- was the inspiration of leadership. Did the rights of Chinese Americans yet re- ices Committee’s efforts toward im- we always agree? No. That was not im- mains an inclusive group, offering as- proving long-term retention and readi- portant but the dialog and communica- sistance not only to Chinese Ameri- ness through a competitive compensa- tions that enabled us to help those in cans, but to all Americans. On behalf of tion package for active and reserve need that farm and ranch was impor- the entire United States Senate, I con- forces, restoration of lifetime health tant. He would say that we are the pro- gratulate the Association of Chinese care for retired personnel and their viders and there is no higher calling on Americans on 28 glorious years, and families, and enhancing protections for God’s Earth. wish the organization continued suc- the survivors of deceased service mem- Bud is survived by 4 daughters, Amy, cess in the future.∑ bers. Under his leadership, TROA has Becky, Rachel, and Karen. Also by f been an invaluable source of informa- their mother, Laura Daniels of Bil- tion that has proven of considerable TRIBUTE TO ADMIRAL LEON A. lings, Montana.∑ utility in the committee’s delibera- EDNEY, U.S. NAVY, RETIRED f tions on a long list of compensation ∑ Mr. WARNER. Mr. President, I rise and benefits issues during this extraor- COUSINO HIGH SCHOOL NAMED today to pay tribute to an exceptional dinarily productive period. BLUE RIBBON SCHOOL FOR 1999– leader in recognition of a remarkable Admiral Bud Edney has been, in 2000 career of service to his country—Admi- every sense of the word, a leader in the ral Leon A. Edney, United States Navy, ∑ Mr. ABRAHAM. Mr. President, in military, TROA, and the entire retired Retired. 1982, the United States Department of Admiral ‘‘Bud’’ Edney has amassed a community. Our very best wishes go Education initiated its Blue Ribbon truly distinguished record, including 35 with him for long life, well-earned hap- Schools Program. In each year since, years of commissioned service in the piness, and continued success in service the Department has recognized schools U.S. Navy uniform, that merits special to his nation and the uniformed service throughout the country which excel in recognition on the occasion of his re- members whom he has so admirably led all areas of academic leadership, teach- tirement as Chairman of the Board of and served. ing and teacher development, and Directors of the Retired Officers Asso- As a former Sailor and Marine, I offer school curriculum. In other words, ciation (TROA). Admiral Edney a grateful and heartfelt Blue Ribbon Schools are the finest pub- Born in Dedham, Massachusetts, he salute, and wish him ‘‘fair winds and lic and private secondary schools our entered the Navy as an ensign in 1957, following seas.’’∑ Nation has to offer. They are the October 3, 2000 CONGRESSIONAL RECORD — SENATE S9699 schools that set the standard for which the work of a few individuals. With ing to commit a crime, and for other pur- others strive. I am very proud to report that having been said, I would like to poses. that nine of the 198 Blue Ribbon recognize Mr. Joseph Sayers, Principal H.R. 5267. An act to designate the United Schools named by Secretary Richard States courthouse located at 100 Federal of Cousino High School, whose dedica- Plaza in Central Islip, New York, as the W. Riley for 1999–2000 are located in the tion to making his school one of the ‘‘Theodore Roosevelt United States Court- State of Michigan, and I rise today to finest in our Nation has been instru- house.’’ recognize Cousino High School in War- mental in creating this community. On H.R. 5284. An act to designate the United ren, Michigan, one of these nine behalf of the entire United States Sen- States customhouse located at 101 East Main schools. ate, I congratulate Cousino High Street in Norfolk, Virginia, as the ‘‘Owen B. Cousino High School is a contem- School on being named a Blue Ribbon Pickett United States Customhouse.’’ porary American high school set School for 1999–2000, and wish the The message further announced that amongst the ‘‘Big Three’’ members of school continued success in the fu- the House has agreed to the following the auto industry—General Motors, ture.∑ concurrent resolutions, in which it re- Ford Motor Company and f quests the concurrence of the Senate: DaimlerChrysler. Much of the instruc- H. Con. Res. 396. Concurrent resolution tional program at Cousino relies upon MESSAGES FROM THE PRESIDENT celebrating the birth of James Madison and the same forces that drive these inter- Messages from the President of the his contributions to the Nation. national automotive giants, a fact United States were communicated to H. Con. Res. 400. Concurrent resolution which can be attributed to the large congratulating the Republic of Hungary on the Senate by Ms. Evans, one of his the millennium of its foundation as a state. participation of the Warren commu- secretaries. nity in the affairs of Cousino High ENROLLED BILLS SIGNED EXECUTIVE MESSAGES REFERRED The message also announced that the School. Teachers, administrators, and As in executive session the Presiding parents, along with nearly 300 leaders Speaker has signed the following en- Officer laid before the Senate messages rolled bills: from local business and industry, are from the President of the United directly involved in shaping the edu- S. 704. An act to amend title 18, United States submitting sundry nominations States Code, to combat the overutilization of cational program. This involvement which were referred to the appropriate has been instrumental in creating the prison health care services and control rising committees. prisoner health care costs. high student achievement level that (The nominations received today are H.R. 3363. An act for the relief of Akal Se- has become a trademark of Cousino printed at the end of the Senate pro- curity, Incorporated. High School. ceedings.) H.R. 4115. An act to authorize appropria- A large part of this program is de- tions for the United States Holocaust Memo- f voted to ensuring that students who rial Museum, and for other purposes. graduate Cousino High School leave MESSAGE FROM THE HOUSE H.R. 4931. An act to provide for the train- tecnologically competent. All Cousino ing or orientation of individuals, during a At 12:10 p.m., a message from the Presidential transition, who the President classes use technology as a tool to fa- House of Representatives, delivered by intends to appoint to certain key positions, cilitate learning. Multiple computer Ms. Niland, one of its reading clerks, to provide for a study and report on improv- labs spread throughout the building announced that the House has passed ing the financial disclosure process for cer- and additional computers in the media the following bills, without amend- tain Presidential nominees, and for other center and classrooms allow students ment: purposes. to easily access the Internet. In addi- H.R. 5193 An act to amend the National S. 302. An act for the relief of Kerantha Housing Act to temporarily extend the appli- tion, Cousino’s proximity to the Gen- Poole-Christian eral Motors Technical Center, the cability of the down payment simplification S. 1794. An act to designate the Federal provisions for the FHA single family housing world’s largest auto research institute, courthouse at 145 East Simpson Avenue in mortgage insurance program. and the satellite automotive and tech- Jackson, Wyoming, as the ‘‘Clifford P. Han- The enrolled bills were signed subse- nical businesses nearby, have provided sen Federal Courthouse.’’ quently by the President pro tempore students with an opportunity to see The message also announced that the (Mr. THURMOND). first-hand the many doors that their House has passed the following bills, in education will open for them. This which it requests the concurrence of At 3:07 p.m., a message from the focus on technology has complemented the Senate: House of Representatives, delivered by the core subjects of literature, H.R. 3088. An act to amend the Omnibus Mr. Hayes, one of its reading clerks, humanitites, philosophy and the arts Crime Control and Safe Streets Act of 1968 to announced that the House has agreed to provide students with a well-bal- provide additional protections to victims of to the report of the committee of con- anced educational foundation. rape. ference on the disagreeing votes of the H.R. 3235. An act to improve academic and Of course, no school could be success- two Houses on the amendment of the ful without students and parents who social outcomes for youth and reduce both juvenile crime and the risk that youth will Senate to the bill (H.R. 4578) making are willing to devote time and energy appropriations for the Department of to see that their school is indeed suc- become victims of crime by providing pro- ductive conducted by law enforcement per- the Interior and related agencies for cessful. This dedication has occurred sonnel during non-school hours. the fiscal year ending September 30, time and again at Cousino High School. H.R. 4147. An act to amend title 18, United 2001, and for other purposes. Parents have consistently served on States Code, to increase the age of persons the Principal’s Advisory Committee considered to be minors for the purposes of At 4:04 p.m., a message from the and School Improvement Plan commit- the prohibition on transporting obscene ma- House of Representatives, delivered by tees, have volunteered in Booster Clubs terials to minors. Mr. Hayes, one of its reading clerks, and for other school activities, and H.R. 4315. An act to designate the facility announced that the House had passed helped to promote school spirit by pro- of the United States Postal Service located at 3695 Green Road in Beachwood, Ohio, as the following joint resolution, in which moting school events. This parental en- the ‘‘Larry Small Post Office Building.’’ it requests the concurrence of the Sen- thusiasm has rubbed off onto students H.R. 4640. An act to make grants to States ate: of Cousino High. Over 80 percent of stu- for carrying out DNA analyses for use in the H.J. Res. 110. Joint resolution making fur- dents participate in extracurricular ac- Combined DNA Index System of the Federal ther continuing appropriations for the fiscal tivities, and students have led the way Bureau of Investigation, to provide for the year 2001, and for other purposes. in aiding the community as a whole, collection and analysis of DNA samples from ENROLLED BILL SIGNED working tirelessly for numerous char- certain violent and sexual offenders for use The message also announced that the in such system, and for other purposes. ities. Speaker has signed the following en- I applaud the students, parents, fac- H.R. 4827. An act to amend title 18, United States Code, to prevent the entry by false rolled bill: ulty and administration of Cousino pretenses to any real property, vessel, or air- H.R. 4733. An act making appropriations High School, for I believe this is an craft of the United States or secure area of for energy and water development for the fis- award which speaks more to the effort any airport, to prevent the misuse of genuine cal year ending September 30, 2001, and for of a united community than it does to and counterfeit police badges by those seek- other purposes. S9700 CONGRESSIONAL RECORD — SENATE October 3, 2000 The enrolled bill was signed subse- to law, the report of a rule entitled ‘‘Cooper- Year 1999’’; to the Committee on the Judici- quently by the President pro tempore ative Agreement: Seven Principles of Envi- ary. (Mr. THURMOND). ronmental Stewardship for U.S./Mexico Busi- f ness and Trade Community’’ received on ENROLLED BILL SIGNED September 28, 2000; to the Committee on En- REPORTS OF COMMITTEES At 6:15 p.m., a message from the vironment and Public Works. RECEIVED DURING RECESS House of Representatives, delivered by EC–10967. A communication from the Dep- Under the authority of the order of Mr. Hayes, one of its reading clerks, uty Associate Administrator, Environmental Protection Agency, transmitting, pursuant the Senate of September 28, 2000, the announced that the Speaker has signed following reports of committees were the following bill: to law, the report of a rule entitled ‘‘South Carolina: Final Authorization of State Haz- submitted on September 29, 2000. S. 1794. An act to designate the Federal ardous Waste Management Program’’ (FRL By Mr. MURKOWSKI, from the Committee courthouse at 145 East Simpson Avenue in #6879–3) received on September 28, 2000; to on Energy and Natural Resources, with an Jackson, Wyoming, as the ‘‘Clifford P. Han- the Committee on Environment and Public amendment in the nature of a substitute and sen Federal Courthouse.’’ Works. an amendment to the title: f EC–10968. A communication from the Dep- S. 1848: A bill to amend the Reclamation uty Associate Administrator, Environmental Wastewater and Groundwater Study and Fa- MEASURES REFERRED Protection Agency, transmitting, pursuant cilities Act to authorize the Secretary of the The following bill was read the first to law, the report of a rule entitled ‘‘Ap- Interior to participate in the design, plan- proval and Promulgation of Implementation ning, and construction of the Denver Water and second times by unanimous con- Plans and Designation of Areas for Air Qual- Reuse project (Rept. No. 106–437). sent, and referred as indicated: ity Planning Purposes: Washington’’ (FRL S. 2195: A bill to amend the Reclamation H.R. 5239. An act to provide for increased #6879–6) received on September 29, 2000; to Wastewater and Groundwater Study and Fa- penalties for violations of the Export Admin- the Committee on Environment and Public cilities Act to authorize the Secretary of the istration Act of 1979, and for other purposes; Works. Interior to participate in the design, plan- to the Committee on Banking, Housing, and EC–10969. A communication from the ning, and construction of the Truckee water- Urban Affairs. Chairman of the Nuclear Regulatory Com- shed reclamation project for the reclamation and reuse of water (Rept. No. 106–438). f mission, transmitting, pursuant to law, a re- port relative to the fiscal year 2000–2005 stra- S. 2301: A bill to amend the Reclamation MEASURES PLACED ON THE tegic plan; to the Committee on Environ- Wastewater and Groundwater Study and Fa- cilities Act to authorize the Secretary of the CALENDAR ment and Public Works. EC–10970. A communication from the Ad- Interior to participate in the design, plan- The following bill was read the first ministrator of the Environmental Protection ning, and construction of the Lakehaven and second times by unanimous con- Agency, transmitting, pursuant to law, a re- water reclamation project for the reclama- sent, and placed on the calendar on Oc- port relative to the fiscal year 2000–2005 stra- tion and reuse of water (Rept. No. 106–439). By Mr. MURKOWSKI, from the Committee tober 2, 2000: tegic plan; to the Committee on Environ- ment and Public Works. on Energy and Natural Resources, with an H.R. 4904 A bill to express the policy of the EC–10971. A communication from the As- amendment in the nature of a substitute: United States regarding the United States sistant Secretary of State (Legislative Af- S. 2345: A bill to direct the Secretary of the relationship with Native Hawaiians, and for fairs), transmitting, pursuant to law, the re- Interior to conduct a special resource study other purposes. port of the transmittal of the certification of concerning the preservation and public use The following resolution was read the proposed issuance of an export license of sites associated with Harriet Tubman lo- and ordered placed on the calendar on relative to Australia, Germany, the Govern- cated in Auburn, New York, and for other today: ment of Israel, Israel, Italy, Japan, South purposes (Rept. No. 106–440). Korea, South Korea, Taiwan, and the United By Mr. MURKOWSKI, from the Committee S.Res. 364. A resolution commending Syd- Kingdom; to the Committee on Foreign Rela- on Energy and Natural Resources, without ney, New South Wales, Australia for its suc- tions. amendment: cessful conduct of the 2000 Summer Olympic EC–10972. A communication from the Dep- S. 2749: A bill to establish the California Games and congratulating the United States uty Director of the Office of Equal Employ- Trail Interpretive Center in Elko, Nevada, to Olympic Team for its outstanding accom- ment, Opportunity and Civil Rights, Depart- facilitate the interpretation of the history of plishments at those Olympic Games. ment of State, transmitting, pursuant to development and use of trails in the setting f law, the report of a rule entitled ‘‘Non- of the western portion of the United States discrimination on the Basis of Sex in Edu- (Rept. No. 106–441). S. 2865: A bill to designate certain land of ENROLLED BILL PRESENTED cation Programs and Activities Receiving the National Forest System located in the Federal Financial Assistance’’ received on The Secretary of the Senate reported State of Virginia as wilderness (Rept. No. September 29, 2000; to the Committee on For- that on today, October 3, 2000, he had 106–442). eign Relations. By Mr. MURKOWSKI, from the Committee presented to the President of the EC–10973. A communication from the As- on Energy and Natural Resources, with an United States the following enrolled sistant Secretary of State (Legislative Af- bill: amendment: fairs), transmitting, a draft of proposed leg- S. 2959: A bill to amend the Dayton Avia- S. 704. An act to amend title 18, United islation entitled ‘‘Passport Procedures— tion Heritage Preservation Act of 1992, and States Code, to combat the overutilization of Amendment to requirements for executing a for other purposes (Rept. No. 106–443). prison health care services and control rising passport application on behalf of a minor’’; By Mr. MURKOWSKI, from the Committee prisoner health care costs. to the Committee on Foreign Relations. on Energy and Natural Resources, with an EC–10974. A communication from the As- f amendment in the nature of a substitute: sistant Secretary of State (Legislative Af- H.R. 1680: A bill to provide for the convey- EXECUTIVE AND OTHER fairs), transmitting, pursuant to law, a re- ance of Forest Service property in Kern port relative to ‘‘countries of particular con- COMMUNICATIONS County, California, in exchange for county cern’’; to the Committee on Foreign Rela- lands suitable for inclusion in Sequoia Na- The following communications were tions. tional Forest (Rept. No. 106–444). laid before the Senate, together with EC–10975. A communication from the As- By Mr. MURKOWSKI, from the Committee accompanying papers, reports, and doc- sistant Secretary of State (Legislative Af- on Energy and Natural Resources, without uments, which were referred as indi- fairs), transmitting, pursuant to law, the no- amendment: tice of proposed issuance of letter of offer cated: H.R. 2919: A bill to promote preservation relative to Egypt; to the Committee on For- and public awareness of the history of the EC–10965. A communication from the As- eign Relations. Underground Railroad by providing financial sistant Secretary for Fish and Wildlife and EC–10976. A communication from the As- assistance, to the Freedom Center in Cin- Parks, Fish and Wildlife Service, Depart- sistant Legal Adviser for Treaty Affairs, De- cinnati, Ohio (Rept. No. 106–445). ment of the Interior, transmitting, pursuant partment of State, transmitting, pursuant to By Mr. MURKOWSKI, from the Committee to law, the report of a rule entitled ‘‘Final law, the report of the texts of international on Energy and Natural Resources, with Compatibility Regulations Pursuant to the agreements, other than treaties, and back- amendments. National Wildlife Refuge System Improve- ground statements; to the Committee on H.R. 4063: A bill to establish the Rosie the ment Act of 1997’’ (RIN1018–AE98) received on Foreign Relations. Riveter-World War II Home Front National September 29, 2000; to the Committee on En- EC–10977. A communication from the As- Historical Park in the State of California, vironment and Public Works. sistant Attorney General of the Office of and for other purposes (Rept. No. 106–446). EC–10966. A communication from the Dep- Legislative Affairs, Department of Justice, By Mr. MURKOWSKI, from the Committee uty Associate Administrator, Environmental transmitting, pursuant to law, the ‘‘Office of on Energy and Natural Resources, without Protection Agency, transmitting, pursuant Justice Programs Annual Report for Fiscal amendment: October 3, 2000 CONGRESSIONAL RECORD — SENATE S9701 H.R. 4285: A bill to authorize the Secretary S. 2804: A bill to designate the facility of amendment in the nature of a substitute and of Agriculture to convey certain administra- the United States Postal Service located at an amendment to the title: tive sites for National Forest System lands 424 South Michigan Street in South Bend, In- S. 2331: A bill to direct the Secretary of the in the State of Texas, to convey certain Na- diana, as the ‘‘John Brademas Post Office’’. Interior to recalculate the franchise fee owed tional Forest System land to the New Wa- The following reports of committees by Fort Sumter Tours, Inc., a concessioner verly Gulf Coast Trades Center, and for other were submitted on today: providing service to Fort Sumter National purposes (Rept. No. 106–447). Monument, South Carolina (Rept. No. 106- By Mr. THOMPSON, from the Committee By Mr. THOMPSON, from the Committee 477). on Governmental Affairs, without amend- on Governmental Affairs, without amend- By Mr. MURKOWSKI, from the Committee ment: ment: on Energy and Natural Resources, with an H.R. 4110: A bill to amend title 44, United H.R. 2302: A bill to designate the building amendment in the nature of a substitute: States Code, to authorize appropriations for of the United States Postal Service located S. 2350: A bill to direct the Secretary of the the National Historical Publications and at 307 Main Street in Johnson City, New Interior to convey certain water rights to Records Commission for fiscal years 2002 York, as the ‘‘James W. McCabe, Sr. Post Of- Duchesne City, Utah (Rept. No. 106-478). through 2005 (Rept. No. 106-466). fice Building’’. By Mr. MURKOWSKI, from the Committee By Mr. CAMPBELL, from the Committee H.R. 3030: A bill to designate the facility of on Energy and Natural Resources, with an on Indian Affairs, with an amendment in the the United States Postal Service located at amendment in the nature of a substitute and 757 Warren Road in Ithaca, New York, as the nature of a substitute: S. 2688: A bill to amend the Native Amer- an amendment to the title: ‘‘Matthew F. McHugh Post Office’’. ican Languages Act to provide for the sup- S. 2547: A bill to provide for the establish- H.R. 3454: A bill to designate the United ment of the Great Sand Dunes National Park States post office located at 451 College port of Native American Language Survival Schools, and for other purposes (Rept. No. and the Great Sand Dunes National Preserve Street in Macon, Georgia, as the ‘‘Henry in the State of Colorado, and for other pur- McNeal Turner Post Office’’. 106-467). By Mr. THOMPSON, from the Committee poses (Rept. No. 106-479). H.R. 3909: on Governmental Affairs, without amend- By Mr. MURKOWSKI, from the Committee H.R. 3985: A bill to designate the facility of on Energy and Natural Resources, with an the United States Postal Service located at ment: S. 2686: A bill to amend chapter 36 of title amendment in the nature of a substitute: 14900 Southwest 30th Street in Miramar City, 39, United States Code, to modify rates relat- S. 3022: A bill to direct the Secretary of the Florida, as the ‘‘Vicki Coceano Post Office ing to reduced rate mail matter, and for Interior to convey certain irrigation facili- Building’’. ties to the Nampa and Meridian Irrigation H.R. 4157: A bill to designate the facility of other purposes (Rept. No. 106-468). S. 3062: A bill to modify the date on which District (Rept. No. 106-480). the United States Postal Service located at the Mayor of the District of Columbia sub- By Mr. MURKOWSKI, from the Committee 600 Lincoln Avenue in Pasadena, California, mits a performance accountability plan to on Energy and Natural Resources, with an as the ‘‘Matthew ‘Mack’ Robinson Post Of- Congress, and for other purposes. (Rept. No. amendment: fice Building’’. 106-469). H.R. 3023: A bill to authorize the Secretary H.R. 4169: A bill to designate the facility of By Mr. THOMPSON, from the Committee of the Interior, acting through the Bureau of the United States Postal Service located at on Governmental Affairs: Reclamation, to convey property to the 2000 Vassar Street in Reno, Nevada, as the Report to accompany S. 3144, An original Greater Yuma Port Authority of Yuma ‘‘Barbara F. Vucanovich Post Office Build- bill to amend the Inspector General Act of County, Arizona, for use as an international ing’’. 1978 (5 U.S.C. App.) to establish police powers port of entry (Rept. No. 106-481). H.R. 4447: A bill to designate the facility of for certain Inspector General agents engaged By Mr. MURKOWSKI, from the Committee the United States Postal Service located at in official duties and provide an oversight on Energy and Natural Resources, without 919 West 34th Street in Baltimore, Maryland, mechanism for the exercise of those powers amendment and with a preamble: as the ‘‘Samuel H. Lacy, Sr. Post Office (Rept. No. 106-470). H. Con. Res. 89: A concurrent resolution Building’’. By Mr. SMITH, of New Hampshire, from recognizing the Hermann Monument and H.R. 4448: A bill to designate the facility of the Committee on Environment and Public Hermann Heights Park in New Ulm, Min- the United States Postal Service located at Works, with amendments: nesota, as a national symbol of the contribu- 3500 Dolfield Avenue in Baltimore, Maryland, H.R. 34: A bill to direct the Secretary of tions of Americans of German heritage as the ‘‘Judge Robert Bernard Watts, Sr. the Interior to make technical corrections to (Rept. No. 106-482). Post Office Building’’. a map relating to the Coastal Barrier Re- By Mr. THOMPSON, from the Committee H.R. 4449: A bill to designate the facility of sources System (Rept. No. 106-471). on Governmental Affairs, with an amend- the United States Postal Service located at By Mr. SMITH, of New Hampshire, from ment in the nature of a substitute: 1908 North Ellamont Street in Baltimore, the Committee on Environment and Public S. 870: A bill to amend the Inspector Gen- Maryland, as the ‘‘Dr. Flossie McClain Works, without amendment: eral Act of 1978 (5 U.S.C. App.) to increase Dedmond Post Office Building’’. H.R. 4320: A bill to assist in the conserva- the efficiency and accountability of Offices H.R. 4484: A bill to designate the facility of tion of great apes by supporting and pro- of Inspector General within Federal depart- the United States Postal Service located at viding financial resources for the conserva- ments, and for other purposes. 500 North Washington Street in Rockville, tion programs of countries within the range f Maryland, as the ‘‘Everett Alvarez, Jr. Post of great apes and projects of persons with Office Building’’. demonstrated expertise in the conservation H.R. 4517: A bill to designate the facility of INTRODUCTION OF BILLS AND of great apes (Rept. No. 106-472). JOINT RESOLUTIONS the United States Postal Service located at H.R. 4435: A bill to clarify certain bound- 24 Tsienneto Road in Derry, New Hampshire, aries on the map relating to Unit NC01 of the The following bills and joint resolu- as the ‘‘Alan B. Shepard, Jr. Post Office Coastal Barrier Resources System (Rept. No. tions were introduced, read the first Building’’. 106-473). and second times by unanimous con- H.R. 4534: A bill to designate the facility of By Mr. CAMPBELL, from the Committee sent, and referred as indicated: the United States Postal Service located at on Indian Affairs, without amendment: 114 Ridge Street in Lenoir, North Carolina, H.R. 4643: A bill to provide for the settle- By Mr. HATCH: as the ‘‘James T. Broyhill Post Office Build- ment of issues and claims related to the S. 3149. A bill to provide for the collection ing’’. trust lands of the Torres-Martinez Desert of information relating to nonimmigrant for- H.R. 4554: A bill to redesignate the facility Cahuilla Indians, and for other purposes eign students and other exchange program of the United States Postal Service located (Rept. No. 106-474). participants; to the Committee on the Judi- at 1602 Frankford Avenue in Philadelphia, By Mr. ROTH, from the Committee on Fi- ciary. Pennsylvania, as the ‘‘Joseph F. Smith Post nance, with an amendment in the nature of By Mr. MURKOWSKI: Office Building’’. a substitute: S. 3150. A bill to convey certain real prop- H.R. 4615: A bill redesignate the facility of H.R. 4844: A bill to modernize the financing erty located in Tongass National Forest to the United States Postal Service located at of the railroad retirement system and to pro- Daniel J. Gross, Sr., and Douglas K. Gross, 3030 Meredith Avenue in Omaha, Nebraska, vide enhanced benefits to employees and and for other purposes; to the Committee on as the ‘‘Reverend J.C. Wade Post Office’’. beneficiaries (Rept. No. 106-475). Energy and Natural Resources. H.R. 4658: A bill to designate the facility of By Mr. MURKOWSKI, from the Committee By Mr. TORRICELLI: the United States Postal Service located at on Energy and Natural Resources, with an S. 3151. A bill to provide for the abatement 301 Green Street in Fayetteville, North Caro- amendment in the nature of a substitute: of noise and other adverse effects of idling lina, as the ‘‘J.L. Dawkins Post Office Build- S. 2111: A bill to direct the Secretary of train engines, and for other purposes; to the ing’’. Agriculture to convey for fair market value Committee on Finance. H.R. 4884: A bill redesignate the facility of 1.06 acres of land in the San Bernardino Na- By Mr. ROTH (for himself, Mr. MOY- the United States Postal Service located at tional Forest, California, to KATY 101.3 FM, NIHAN, Mr. GRASSLEY, Mr. BAUCUS, 200 West 2nd Street in Royal Oak, Michigan, a California corporation (Rept. No. 106-476). Mr. HATCH, Mr. ROCKEFELLER, Mr. as the ‘‘William S. Broomfield Post Office By Mr. MURKOWSKI, from the Committee MURKOWSKI, Mr. BREAUX, Mr. JEF- Building’’. on Energy and Natural Resources, with an FORDS, Mr. CONRAD, Mr. MACK, Mr. S9702 CONGRESSIONAL RECORD — SENATE October 3, 2000 GRAHAM, Mr. THOMPSON, Mr. KERREY, STATEMENTS ON INTRODUCED District Ranger, Tongass National For- Mr. ROBB, and Mr. BRYAN): BILLS AND JOINT RESOLUTIONS est he wrote ‘‘I was present when Mr. S. 3152. A bill to amend the Internal Rev- By Mr. MURKOWSKI: Bungy, United States Forest Service enue Code of 1986 to provide tax incentives specialist, sawed and chopped open the for distressed areas, and for other purposes; S. 3150. A bill to convey certain real read the first time. property located in Tongass National large spruce tree which the Gross By Mr. DOMENICI: Forest to Daniel J. Gross, Sr., and Brothers had identified from memory S. 3153. A bill to authorize the Secretary of Douglas K. Gross, and for other pur- as being a witness tree. Mr. Bungy the Air Force to convey certain excess per- poses; to the Committee on Energy and verified that the large blaze uncovered sonal property of the Air Force to Roosevelt Natural Resources. was of the exact age that coincided General Hospital, Portales, New Mexico; to with the Gross claim. By counting the the Committee on Armed Services. THE HERITAGE LAND TRANSFER ACT OF 2000 annual growth rings it coincided with By Mr. MOYNIHAN (for himself and Mr. MURKOWSKI. Mr. President, I the many affidavits and statements of Mr. SCHUMER): rise today to introduce the Heritage witness about the Gross claim of home- S. 3154. A bill to establish the Erie Land Transfer Act of 2000. This legisla- Canalway National Heritage Corridor in the stead.’’ tion, while inconsequential when com- There is no question that the family State of New York, and for other purposes; pared to many of the issues we deal to the Committee on Energy and Natural Re- settled on the Green Point property on sources. with in the U.S. Congress, is extremely the Stikine River in the 1930’s. They By Mr. LAUTENBERG: important to two of my oldest con- raised all of their children on their S. 3155. A bill to authorize the President to stituents, Douglas and Daniel Gross. property and were good friends to all award a gold medal on behalf of the Congress These two brothers along with the who lived and worked throughout the to Oskar Schindler and Varian Fry in rec- other members of the Gross family are region. I have in my possession many ognition of their contributions to the Nation amongst Alaska’s earliest pioneers. affidavits, each one testifying to the and humanity; to the Committee on Bank- These two brothers have spent over 80 settlement of the Gross family along ing, Housing, and Urban Affairs. years drawing their existence out of By Mr. LAUTENBERG (for himself, the Stikine River. I offer the following Mrs. BOXER, Mr. KENNEDY, Mr. the harsh Southeastern Alaskan envi- quotations typical of these testaments: WELLSTONE, Mr. DODD, Mr. MOY- ronment. Through all these years, they ‘‘In the early 1930’s I spent a lot of time NIHAN, Mr. SCHUMER, Mr. KERRY, Mr. managed to raise their families and up the Stikine River at the Gross TORRICELLI, Mr. LEAHY, and Mr. contributed to building the great State Ranch. They had a large two story REID): that I have the privilege of rep- home and a huge garden . . .’’ ‘‘I stayed S. 3156. A bill to amend the Endangered resenting. I would also point out that with Mr. and Mrs. Bill Gross in the Species Act of 1973 to ensure the recovery of Douglas and Daniel Gross served our middle thirties. Bessie Gross took care the declining biological diversity of the Nation during World War II at its time United States, to reaffirm and strengthen of my brother Gilbert and I while my the commitment of the United States to pro- of greatest need—now these two vet- mother and father were out fishing, tect wildlife, to safeguard the economic and erans need our help to right a wrong they had a house and garden on the ecological future of children of the United that has been vested upon them river which everyone knows as the States, and to provide certainty to local gov- through no fault of their own. Gross place even to this day . . .’’ ‘‘I ernments, communities, and individuals in ‘‘The Heritage Land Transfer Act of stayed with Bessie Gross and Family their planning and economic development ef- 2000’’ directs the Forest Service to con- during the late 1930’s in their place up forts; to the Committee on Environment and vey 160 acres to Daniel and Douglas Public Works. the river . . .’’ And another from Mr. Gross. This granting of clear title Harry Sundberg, a gillnet fisherman, f would fix a problem that has plagued used to fish in ‘‘what was known lo- the family for the past 20 years. The cally as the Gross homestead.’’ Mr. SUBMISSION OF CONCURRENT AND need for this action arises from the Sundberg goes on to say ‘‘While most SENATE RESOLUTIONS fact that no records remain to substan- people during that period did not file tial the family’s claim that they home- The following concurrent resolutions on the land they occupied, I distinctly steaded on Greens Point in the 1930’s. recall that our conversations included and Senate resolutions were read, and Family homesteading records were de- referred (or acted upon), as indicated: the fact that they had applied for their stroyed when the Gross home burned to application to own property similar to By Mr. HATCH (for himself, Mr. BEN- the ground in 1935–1936 and to make Captain Lee, who owned the property NETT, Mr. STEVENS, Ms. LANDRIEU, matters worse, the Forest Service is Mr. BROWNBACK, Mr. KERRY, Mr. directly south of them on the main- HELMS, Mr. BINGAMAN, Mr. CRAIG, unable to locate any documentation to land.’’ Mr. DURBIN, Mr. L. CHAFEE, Mr. substantiate the Gross family claim. The Homestead Act requires resi- BRYAN, Mr. KERREY, Mr. LOTT, Mrs. With neither title nor documentation, dency for a minimum of 3 years. These HUTCHISON, Mr. KENNEDY, Mr. LEVIN, Doug and Dan Gross are unable to affidavits, and many others, verify the Mrs. BOXER, Mr. WARNER, Mr. ABRA- produce any legal record of ownership Gross families life on this property HAM, Ms. COLLINS, Mr. EDWARDS, Mr. to the land their parents homesteaded. since the early 1930’s. In a letter from GRASSLEY, Mr. DOMENICI, Mr. SES- The paper records, however, are the the Department of Agriculture to Sen- SIONS, Mr. LUGAR, Mr. COCHRAN, Ms. only things missing. The Forest Serv- ator STEVENS they write ‘‘Even though SNOWE, and Mr. THOMAS): S. Res. 364. A resolution commending Syd- ice willingly acknowledges that a large it’s clear the Gross family homesteaded ney, New South Wales, Australia for its suc- body of evidence exists that clearly es- on the property, there is no evidence or cessful conduct of the 2000 Summer Olympic tablishes the fact that the family built record that they completed the process Games and congratulating the United States a home on Greens Point in the 1930’s, to obtain title.’’ Another letter from Olympic Team for its outstanding accom- that they grew and sold vegetables the Department of Agriculture states plishments at those Olympic Games; placed from this farmstead, and that they ‘‘the Forest Service does not and has on the calendar. were good neighbors to many people not refuted your claim that you and/or By Mr. VOINOVICH (for himself, Mr. caught out in our famous Alaskan your family resided at Greens Point in BIDEN, Mr. LUGAR, Mr. HAGEL, Mr. SMITH of Oregon, Mr. LAUTENBERG, storms. While the family and the For- the 1930’s.’’ An Alaska Magazine article and Ms. LANDRIEU): est Service have searched in vain for written in 1984 references the ‘‘Gross S. Res. 365. A resolution expressing the written records, there is one piece of place’’ along the Stikine River. sense of the Senate regarding recent elec- physical evidence to substantiate the The Homestead Act authorized the tions in the Federal Republic of Yugoslavia, family claim. On September 11, 1989, transfer of 160 acre parcels of federal and for other purposes; to the Committee on Alaska State Senator Robin Taylor land to private owners. The Gross Foreign Relations. traveled to the Gross property on the Homestead is 160.8 acres. A tree, both By Mr. MCCONNELL: Stikine River for the purpose of locat- Daniel and Douglas Gross remember S. Con. Res. 141. A concurrent resolution to authorize the printing of copies of the publi- ing a witness tree which would provide being used as a survey marker when cation entitled ‘‘The United States Capitol’’ objective proof to the Gross family they were boys, was examined in 1989 as a Senate document; considered and agreed claim of homestead. In a letter Senator and found to have a flat face blazed to. Taylor sent to Richard Kohrt, Wrangell into the wood approximately 50 years October 3, 2000 CONGRESSIONAL RECORD — SENATE S9703 prior. This is not a coincidence. It is other priorities are marriage tax relief, Sir, we all should be grateful for Sen- proof this land was surveyed when the retirement security, education, estate ator ROTH’s leadership in this matter. family claims it was surveyed. tax relief, small business tax relief, and Community renewal is an effort to re- This family has lived on, and made other items. Community renewal tax build American communities, which is use of this land for 70 years. It is time relief must fit within the overall based on an agreement reached be- for them to be named the legal title framework of the tax relief agenda. tween the President and the Speaker of holders, and to complete the already This Finance Committee bill is fair the House that this is legislation we started process of shuffling paper. and it is in line with the revenue loss ought to have. The signals are clear: of the package, proposed by Senators the legislation will be enacted this By Mr. ROTH (for himself, Mr. SANTORUM, ABRAHAM, and LIEBERMAN, year with or without us. Today, Sen- MOYNIHAN, Mr. GRASSLEY, Mr. which was considered earlier this year ator ROTH and I give a voice in this BAUCUS, Mr. HATCH, Mr. ROCKE- in the Senate. In designing this bill, process to the Finance Committee and FELLER, Mr. MURKOWSKI, Mr. members of the Finance Committee de- the Senate. BREAUX, Mr. JEFFORDS, Mr. cided not to turn this bill into a grab Mr. President, this bill represents the CONRAD, Mr. MACK, Mr. bag of special interest provisions. will of the Finance Committee. It in- GRAHAM, Mr. THOMPSON, Mr. This Finance Committee bill includes corporates the worthwhile ideas of its KERREY, Mr. ROBB, and Mr. a variety of proposals that will further members, including the work of my BRYAN): the bill’s goals of community renewal— good friend, Senator ROBB, who, along S. 3152. A bill to amend the Internal rationalizing and simplifying what was with Senator ROCKEFELLER, has worked Revenue Code of 1986 to provide tax in- and, was proposed to be, a hodge-podge tirelessly to provide meaningful incen- centives for distressed areas, and for of often conflicting provisions. It in- tives for investment in distressed com- other purposes; read the first time. cludes an immediate—let me empha- munities. COMMUNITY RENEWAL AND NEW MARKETS ACT size immediate—increase in the volume I also take a moment of the Senate’s OF 2000 caps for low-income housing tax credits time to echo Senator ROTH’s tribute to Mr. ROTH. Mr. President, today I and private activity bonds. It also ad- Senator John Chafee. It is fitting that am, along with 14 cosponsors from the dresses many, many important prob- we should enact, in a bipartisan bill, Finance Committee, introducing a lems left out of the House and Admin- the tax credit for renovating historic Community Renewal tax reduction bill istration proposal. Among other homes in honor of a great Senator. that will help all America benefit from things, this package contains an en- Substantively, the Community Re- today’s economic boom. ergy and conservation component, a newal legislation is significant in sev- As you know, the House bill em- farm relief component, an Individual eral respects. First, it provides a nota- bodies an agreement between the Development Account proposal, an ex- ble measure of tax simplification, even House and the Administration. Person- tension of the adoption credit and the as it accomplishes a worthwhile goal— ally, I think that it would be wrong for enhanced deduction for computer dona- tax benefits for investment in poor the Senate to be silent in this process. tions, a program to develop high speed communities. While the bill designates It is important for this body to at least rail around the country, and a 30 new ‘‘Renewal Zones,’’ it also con- have a voice in crafting this legisla- broadband Internet incentive that will forms the tax incentives available to tion. make sure that no one gets left on the individuals and businesses investing in While I would have preferred that wrong side of the digital divide. any of the zone designations, current this legislation to have been reported One provision that I particularly or future. Our legislation smartly uni- from the Finance Committee, I believe want to talk about is the tax credit for fies these Empowerment and Renewal my bill represents the Committee’s renovating historic homes. This was Zones and creates a common set of in- will. It is largely composed of the one of Senator John Chafee’s signature centives. This is the right kind of legis- Chairman’s mark and amendments sub- items and I am pleased to include it in lation. mitted by the Committee’s members. the Finance Committee bill, not only I also note, Mr. President, with some Every Member of the Finance Com- because I support it, but as a tribute to appreciation, two provisions that will mittee had input into this bill. In the our good friend. We all know that if he make transportation and data trans- regular course of Finance Committee were here, he would have fought hard mission very quick indeed. The bill in- business, we would have reported this for this tax incentive. cludes provisions to accelerate and ex- bill out of the Committee with an over- In fact, Senator LINCOLN CHAFEE pand access to high-technology infra- whelming vote in support. And the fact came to see me earlier this year. LIN- structure for all communities. First, it that 15 members on both sides of the COLN told that in his dad’s last speech, authorizes $10 billion of tax credit aisle have joined me as original co- John talked about the importance of bonds for Amtrak to develop high- sponsors, I believe, attests to the Fi- the tax credit and said that it was speed railways. High-speed railways nance Committee’s approval of this something he wanted to get done be- have the potential to connect the very legislation. fore he left the Senate. Unfortunately, communities targeted by this legisla- It goes without saying that Amer- he is not with us today, but hopefully tion and provide them with greater ac- ica’s communities are important. I be- we can complete this unfinished busi- cess to information. lieve that there are many ways in ness for him. Second, the bill includes a proposal which we can extend help to them. I This is a fair package and a generous that I first introduced on June 8, 2000. also feel that any time we can work to- package. I believe it is one that this That proposal, which now has 52 Senate gether with the Administration to cut Senate should feel comfortable embrac- supporters, provides graduated tax taxes we must try and see it to fru- ing. I hope each of you who has not credits for deployment of high-speed ition. done so, will do so. communications—called While I listened to the concerns of Mr. MOYNIHAN. Mr. President, last ‘‘broadband’’—to residential and rural every senator—both on and off the Fi- week the Finance Committee was communities. Current market forces nance committee—who approached me scheduled to mark up the ‘‘Community are driving deployment of broadband with a provision in which they were in- Renewal and New Markets Act of 2000,’’ technology almost exclusively to urban terested, I did not incorporate them but the legislation became burdened by businesses and wealthy households. all. I did not because I could not with- extraneous matters, and the Com- The proposal in the bill will encourage out the cost of the bill growing out of mittee was unable to complete the broadband providers to act quickly to control. It is important that we not mark-up. I rise today to join my good deploy broadband to Americans in all forget communities that may not have friend and Chairman of the Finance communities. received as much as others from Amer- Committee, Senator ROTH, in intro- Mr. President, if you will allow me ica’s economic boom. However, it is ducing the ‘‘Community Renewal and one further observation, as I am com- also important that we consider the New Markets Act of 2000’’ as an origi- pelled to compliment the bill in one size of this bill in the context of other nal bill with 15 cosponsors from the Fi- other respect. Consistent with the pur- tax relief priorities that remain. These nance Committee. pose of this legislation, it includes a S9704 CONGRESSIONAL RECORD — SENATE October 3, 2000 tax incentive for investment in labor in ing the extra taxation on savings—a we Subtitle B—Modification of Incentives for Puerto Rico. The provision does not ac- do to the extent that people can make Empowerment Zones complish all that I had hoped it would, deductible contributions to traditional Sec. 111. Extension of empowerment zone but I believe it represents a positive IRAs and contributions to Roth IRAs. treatment through 2009. step forward. It extends to Puerto Rico But to give people money to reward Sec. 112. 15 percent employment credit for all empowerment zones tax incentives for job creation similar them for saving is pure income redis- Sec. 113. Increased expensing under section to the ones in other areas of the bill, tribution, a misuse of the taxpayers’ 179. and it does so, quite simply, through money. Sec. 114. Higher limits on tax-exempt em- an existing tax-code provision, the Despite my disagreement with some powerment zone facility bonds. Puerto Rico economic activity credit. of the provisions of this bill, I am Sec. 115. Empowerment zone capital gain. Mr. President, I again applaud the pleased that the bill contains several Sec. 116. Funding for Round II empowerment leadership of our revered Chairman and initiatives that I have proposed over zones. proudly join him in introducing the the past few Congresses. The Low In- Subtitle C—Modification of Tax Incentives Community Renewal and New Markets come Housing Tax Credit is boosted to for DC Zone Act of 2000. make up for over a decade’s worth of Sec. 121. Extension of DC zone through 2006. Mr. MACK. Mr. President, as a co- inflation, and is indexed to prevent this Sec. 122. Extension of DC zero percent cap- ital gains rate. sponsor of the Community Renewal problem from reoccurring. The First- Sec. 123. Gross income test for DC zone busi- and New Markets Act of 2000, I want to Time Homebuyer Tax Credit for the nesses. commend Chairman ROTH for his usual District of Columbia is extended and Sec. 124. Expansion of DC homebuyer tax fine work in assembling a bill that gar- the marriage penalty in the credit is credit. ners the support of such a large num- eliminated. Section 1706 of the Tax Re- Subtitle D—New Markets Tax Credit ber of our Finance Committee col- form Act of 1986, which discriminates Sec. 131. New markets tax credit. leagues. I am pleased that a number of against high technology workers and Subtitle E—Modification of Tax Incentives items in this bill are provisions that the companies that hire them, is re- for Puerto Rico are extremely important to me, and I pealed. Not-for-hire disaster insurance Sec. 141. Modification of Puerto Rico eco- would like to speak briefly concerning funds, in my state of Florida and sev- nomic activity tax credit. them. eral others, are made tax-exempt enti- Subtitle F—Individual Development But I also want to draw attention to ties. Accounts some provisions in this bill that I do I am most encouraged by the exten- Sec. 151. Definitions. not favor. As this bill stands in the sion of my zero percent capital gains Sec. 152. Structure and administration of place of what would have been a bill re- tax rate proposal to businesses in the qualified individual develop- ported out of the Committee on Fi- entire District of Columbia, and to ment account programs. nance, it reflects the compromises that businesses in all empowerment and re- Sec. 153. Procedures for opening an indi- are inherent in the committee process. newal zones. Although I am concerned vidual development account Unlike typical bills, of which it is rea- that the lengthy, five-year holding pe- and qualifying for matching funds. sonable to assume that every provision riod is unwise and undermines the Sec. 154. Contributions to individual devel- is supported by every co-sponsor, prob- power of the proposal, I am neverthe- opment accounts. ably every co-sponsor of this bill can less pleased that the idea is spreading Sec. 155. Deposits by qualified individual de- find provisions contained in it that he and people are coming to see cap- velopment account programs. does not support. Of many, there are italism as the only true cure for pov- Sec. 156. Withdrawal procedures. two that I find most troubling: the erty. Sec. 157. Certification and termination of Mr. ROTH. Mr. President, along with qualified individual develop- ‘‘new markets tax credit,’’ and the ‘‘in- ment account programs. dividual development accounts.’’ Senator MOYNIHAN and the other mem- Sec. 158. Reporting, monitoring, and evalua- These two provisions are appropria- bers of the committee I ask unanimous tion. tions masquerading as tax cuts. Under consent that S. 3152, the Community Sec. 159. Account funds of program partici- the new markets tax credit, the Sec- Renewal and New Markets Act of 2000 pants disregarded for purposes retary of the Treasury would annually be printed in the RECORD. I also ask of certain means-tested Federal pay dividends to investors in ‘‘commu- unanimous consent that a technical ex- programs. nity development entities,’’ which planation of S. 3152, which has been Sec. 160. Matching funds for individual de- velopment accounts provided must be certified by the Treasury De- prepared by the Joint Committee on through a tax credit for quali- partment and which must have as their Taxation, be printed in the RECORD, at fied financial institutions. primary mission investing in low-in- a cost of $4,290.00, immediately fol- Sec. 161. Designation of earned income tax come people or communities. This pro- lowing the text of the bill. credit payments for deposit to posal is premised on the belief that an There being no objection, the mate- individual development ac- entity that lacks a profit-motive, rial was ordered to be printed in the counts. under federal bureaucratic supervision, RECORD, as follows: Subtitle G—Additional Incentives will be an attractive investment for S. 3152 Sec. 171. Exclusion of certain amounts re- people if dividends are guaranteed. It is Be it enacted by the Senate and House of Rep- ceived under the National the sort of scheme that could only be resentatives of the United States of America in Health Service Corps Scholar- dreamed up by people who have spent Congress assembled, ship Program and the their entire careers in government. A SECTION 1. SHORT TITLE; ETC. F. Edward Hebert Armed Forces Health Professions simpler way to direct capital to invest- (a) SHORT TITLE.—This Act may be cited as the ‘‘Community Renewal and New Markets Scholarship and Financial As- ment-starved pockets is by eliminating Act of 2000’’. sistance Program. the tax on capital gains—this is the de- (b) AMENDMENT OF 1986 CODE.—Except as Sec. 172. Extension of enhanced deduction centralized, market-oriented approach. otherwise expressly provided, whenever in for corporate donations of com- The ‘‘individual development ac- this Act an amendment or repeal is ex- puter technology. counts’’ would launder government- pressed in terms of an amendment to, or re- Sec. 173. Extension of adoption tax credit. matching funds for low income savers peal of, a section or other provision, the ref- Sec. 174. Tax treatment of Alaska Native through financial institutions. This erence shall be considered to be made to a Settlement Trusts. Sec. 175. Treatment of Indian tribal govern- new entitlement cannot be justified. It section or other provision of the Internal Revenue Code of 1986. ments under Federal Unem- is true that, by some measures, the (c) TABLE OF CONTENTS.— ployment Tax Act. savings rate in the United States ap- Sec. 1. Short title; etc. Sec. 176. Increase in social services block pears low. Simple logic dictates that TITLE I—INCENTIVES FOR DISTRESSED grant for FY 2001. the savings rate have been lowered due COMMUNITIES TITLE II—TAX INCENTIVES FOR to federal tax policies, which impose Subtitle A—Designation and Treatment of AFFORDABLE HOUSING several layers of taxation upon income Renewal Zones Subtitle A—Low-Income Housing Credit that is saved. It is one thing to address Sec. 101. Designation and treatment of re- Sec. 201. Modification of State ceiling on this problem at the source, by remov- newal zones. low-income housing credit. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9705

Sec. 202. Modification to rules relating to Sec. 506. Natural gas gathering lines treated ‘‘(A) IN GENERAL.—Except as otherwise pro- basis of building which is eligi- as 7-year property. vided in this section, the nominated areas ble for credit. Sec. 507. Clarification of treatment of pipe- designated as renewal zones under this sub- Subtitle B—Historic Homes line transportation income. section shall be those nominated areas with the highest average ranking with respect to Sec. 211. Tax credit for renovating historic TITLE VI—TAX INCENTIVES FOR the criteria described in subparagraphs (B), homes. CONSERVATION (C), and (D) of subsection (d)(3). For purposes Sec. 601. Exclusion of 50 percent of gain on Subtitle C—Forgiven Mortgage Obligations of the preceding sentence, an area shall be sales of land or interests in land Sec. 221. Exclusion from gross income for ranked within each such criterion on the or water to eligible entities for certain forgiven mortgage obli- basis of the amount by which the area ex- conservation purposes. gations. ceeds such criterion, with the area which ex- Sec. 602. Expansion of estate tax exclusion ceeds such criterion by the greatest amount Subtitle D—Mortgage Revenue Bonds for real property subject to given the highest ranking. Sec. 231. Increase in purchase price limita- qualified conservation ease- ‘‘(B) EXCEPTION WHERE INADEQUATE COURSE tion under mortgage subsidy ment. OF ACTION, ETC.—An area shall not be des- bond rules based on median Sec. 603. Tax exclusion for cost-sharing pay- ignated under subparagraph (A) if the appro- family income. ments under partners for wild- priate Secretary determines that the course Sec. 232. Mortgage financing for residences life program. located in presidentially de- Sec. 604. Incentive for certain energy effi- of action described in subsection (e)(2) with clared disaster areas. cient property used in business. respect to such area is inadequate. ‘‘(C) PRIORITY FOR 1 NOMINATED AREA IN Subtitle E—Property and Casualty Insurance Sec. 605. Extension and modification of tax credit for electricity produced EACH STATE.—For purposes of this sub- Sec. 241. Exemption from income tax for from biomass. chapter, 1 nominated area within each State State-created organizations Sec. 606. Tax credit for certain energy effi- without any area designated as an empower- providing property and cas- cient motor vehicles. ment zone under section 1391 or 1400 shall be ualty insurance for property for treated for purposes of this paragraph as which such coverage is other- TITLE VII—ADDITIONAL TAX having the highest average with respect to wise unavailable. PROVISIONS the criteria described in subparagraphs (B), TITLE III—TAX INCENTIVES FOR URBAN Sec. 701. Limitation on use of nonaccrual ex- (C), and (D) of subsection (d)(3). AND RURAL INFRASTRUCTURE perience method of accounting. ‘‘(4) LIMITATION ON DESIGNATIONS.— Sec. 702. Repeal of section 530(d) of the Rev- Sec. 301. Increase in State ceiling on private ‘‘(A) PUBLICATION OF REGULATIONS.—The enue Act of 1978. activity bonds. Secretary of Housing and Urban Develop- Sec. 703. Expansion of exemption from per- Sec. 302. Modifications to expensing of envi- ment shall prescribe by regulation not later sonal holding company tax for ronmental remediation costs. than 4 months after the date of the enact- lending or finance companies. Sec. 303. Broadband internet access tax cred- ment of this section, after consultation with Sec. 704. Charitable contribution deduction it. the Secretary of Agriculture— for certain expenses incurred in Sec. 304. Credit to holders of qualified Am- ‘‘(i) the procedures for nominating an area support of Native Alaskan sub- trak bonds. under paragraph (1)(A), Sec. 305. Clarification of contribution in aid sistence whaling. ‘‘(ii) the parameters relating to the size of construction. Sec. 705. Imposition of excise tax on persons and population characteristics of a renewal Sec. 306. Recovery period for depreciation of who acquire structured settle- zone, and certain leasehold improve- ment payments in factoring ‘‘(iii) the manner in which nominated areas ments. transactions. will be evaluated based on the criteria speci- fied in subsection (e). TITLE IV—TAX RELIEF FOR FARMERS TITLE I—INCENTIVES FOR DISTRESSED COMMUNITIES ‘‘(B) TIME LIMITATIONS.—The appropriate Sec. 401. Farm, fishing, and ranch risk man- Secretaries may designate nominated areas agement accounts. Subtitle A—Designation and Treatment of Renewal Zones as renewal zones only during the period be- Sec. 402. Written agreement relating to ex- ginning on the first day of the first month clusion of certain farm rental SEC. 101. DESIGNATION AND TREATMENT OF RE- following the month in which the regula- income from net earnings from NEWAL ZONES. tions described in subparagraph (A) are pre- self-employment. (a) IN GENERAL.—Chapter 1 is amended by scribed and ending on December 31, 2001. adding at the end the following new sub- Sec. 403. Treatment of conservation reserve ‘‘(C) PROCEDURAL RULES.—The appropriate program payments as rentals chapter: Secretary shall not make any designation of from real estate. ‘‘Subchapter X—Designation and Treatment a nominated area as a renewal zone under Sec. 404. Exemption of agricultural bonds of Renewal Zones paragraph (2) unless— from State volume cap. ‘‘Sec. 1400E. Designation and treatment of ‘‘(i) the local governments and the States Sec. 405. Modifications to section 512(b)(13). renewal zones. in which the nominated area is located have Sec. 406. Charitable deduction for contribu- the authority— tions of food inventory. ‘‘SEC. 1400E. DESIGNATION AND TREATMENT OF RENEWAL ZONES. ‘‘(I) to nominate such area for designation Sec. 407. Income averaging for farmers and ‘‘(a) TREATMENT OF DESIGNATION.—For pur- as a renewal zone, fishermen not to increase alter- poses of this title, any area designated as a ‘‘(II) to make the State and local commit- native minimum tax liability. renewal zone under this section shall be ments described in subsection (e), and Sec. 408. Cooperative marketing includes treated as an empowerment zone. ‘‘(III) to provide assurances satisfactory to value-added processing through ‘‘(b) DESIGNATION.— the appropriate Secretary that such commit- animals. ‘‘(1) RENEWAL ZONE DEFINED.—For purposes ments will be fulfilled, Sec. 409. Declaratory judgment relief for of this title, the term ‘renewal zone’ means ‘‘(ii) a nomination regarding such area is section 521 cooperatives. any area— submitted in such a manner and in such Sec. 410. Small ethanol producer credit. ‘‘(A) which is nominated by one or more form, and contains such information, as the Sec. 411. Payment of dividends on stock of local governments and the State or States in appropriate Secretary shall by regulation cooperatives without reducing which it is located for designation as a re- prescribe, and patronage dividends. newal zone (hereafter in this section referred ‘‘(iii) the appropriate Secretary determines TITLE V—TAX INCENTIVES FOR THE to as a ‘nominated area’), and that any information furnished is reasonably PRODUCTION OF ENERGY ‘‘(B) which the appropriate Secretary des- accurate. Sec. 501. Election to expense geological and ignates as a renewal zone. ‘‘(5) NOMINATION PROCESS FOR INDIAN RES- geophysical expenditures. ‘‘(2) NUMBER OF DESIGNATIONS.— ERVATIONS.—For purposes of this subchapter, Sec. 502. Election to expense delay rental ‘‘(A) IN GENERAL.—The appropriate Secre- in the case of a nominated area on an Indian payments taries may designate not more than 30 nomi- reservation, the reservation governing body Sec. 503. 5-year net operating loss carryback nated areas as renewal zones. (as determined by the Secretary of the Inte- for losses attributable to oper- ‘‘(B) MINIMUM DESIGNATION IN RURAL rior) shall be treated as being both the State ating mineral interests of inde- AREAS.—Of the areas designated under sub- and local governments with respect to such pendent oil and gas producers. paragraph (A), at least 6 must be areas— area. Sec. 504. Temporary suspension of percent- ‘‘(i) which are within a local government ‘‘(c) PERIOD FOR WHICH DESIGNATION ISIN age of depletion deduction limi- jurisdiction or jurisdictions with a popu- EFFECT.— tation based on 65 percent of lation of less than 50,000, or ‘‘(1) IN GENERAL.—Any designation of an taxable income. ‘‘(ii) which satisfy the requirements of sec- area as a renewal zone shall remain in effect Sec. 505. Tax credit for marginal domestic tion 1393(a)(2). during the period beginning on January 1, oil and natural gas well produc- ‘‘(3) AREAS DESIGNATED BASED ON DEGREE 2002, and ending on the earliest of— tion. OF POVERTY, ETC.— ‘‘(A) December 31, 2009, S9706 CONGRESSIONAL RECORD — SENATE October 3, 2000

‘‘(B) the termination date designated by (3), take into account the existence of out- ‘‘(4) APPLICATION OF RULES RELATING TO the State and local governments in their migration from the area. CENSUS TRACTS.—The rules of section nomination, or 1392(b)(4) shall apply. ‘‘(e) REQUIRED STATE AND LOCAL COMMIT- ‘‘(C) the date the appropriate Secretary re- ‘‘(5) CENSUS DATA.—Population and poverty MENTS.— vokes such designation. rate shall be determined by using 1990 census ‘‘(1) IN GENERAL.—The appropriate Sec- ‘‘(2) REVOCATION OF DESIGNATION.—The ap- retary may designate any nominated area as data.’’. (b) AUDIT AND REPORT.—Not later than propriate Secretary may revoke the designa- a renewal zone under subsection (b) only if January 31 of 2004, 2007, and 2010, the Comp- tion under this section of an area if such the local government and the State in which troller General of the United States shall, Secretary determines that the local govern- the area is located agree in writing that, pursuant to an audit of the renewal zone pro- ment or the State in which the area is during any period during which the area is a gram established under section 1400E of the located— renewal zone, such governments will follow a Internal Revenue Code of 1986 (as added by ‘‘(A) has modified the boundaries of the specified course of action which meets the subsection (a)), report to Congress on such area, or requirements of paragraph (2) and is designed program and its effect on poverty, unemploy- ‘‘(B) is not complying substantially with, to reduce the various burdens borne by em- ment, and economic growth within the des- or fails to make progress in achieving, the ployers or employees in such area. State or local commitments, respectively, ignated renewal zones. ‘‘(2) COURSE OF ACTION.— described in subsection (e). (c) CLERICAL AMENDMENT.—The table of ‘‘(A) IN GENERAL.—A course of action meets subchapters for chapter 1 is amended by add- ‘‘(d) AREA AND ELIGIBILITY REQUIRE- the requirements of this paragraph if such ing at the end the following new item: MENTS.— course of action is a written document, ‘‘(1) IN GENERAL.—The appropriate Sec- signed by a State (or local government) and ‘‘Subchapter X. Designation and Treatment retary may designate a nominated area as a neighborhood organizations, which evidences of Renewal Zones.’’. renewal zone under subsection (b) only if the a partnership between such State or govern- Subtitle B—Modification of Incentives for area meets the requirements of paragraphs ment and community-based organizations Empowerment Zones (2) and (3) of this subsection. and which commits each signatory to spe- SEC. 111. EXTENSION OF EMPOWERMENT ZONE ‘‘(2) AREA REQUIREMENTS.—A nominated cific and measurable goals, actions, and TREATMENT THROUGH 2009. area meets the requirements of this para- timetables. Such course of action shall in- Subparagraph (A) of section 1391(d)(1) (re- graph if— clude at least 4 of the following: lating to period for which designation is in ‘‘(A) the area is within the jurisdiction of ‘‘(i) A reduction of tax rates or fees apply- effect) is amended to read as follows: one or more local governments, ing within the renewal zone. ‘‘(A)(i) in the case of an empowerment ‘‘(B) the boundary of the area is contin- ‘‘(ii) An increase in the level of efficiency zone, December 31, 2009, or uous, and of local services within the renewal zone. ‘‘(ii) in the case of an enterprise commu- ‘‘(C) the area— ‘‘(iii) Crime reduction strategies, such as nity, the close of the 10th calendar year be- ‘‘(i) has a population of not more than crime prevention (including the provision of ginning on or after such date of designa- 200,000 and at least— crime prevention services by nongovern- tion,’’. ‘‘(I) 4,000 if any portion of such area (other mental entities). SEC. 112. 15 PERCENT EMPLOYMENT CREDIT FOR than a rural area described in subsection ‘‘(iv) Actions to reduce, remove, simplify, ALL EMPOWERMENT ZONES (b)(2)(B)(i)) is located within a metropolitan or streamline governmental requirements (a) 15 PERCENT CREDIT.—Subsection (b) of statistical area (within the meaning of sec- applying within the renewal zone. section 1396 (relating to empowerment zone tion 143(k)(2)(B)) which has a population of ‘‘(v) Involvement in the program by pri- employment credit) is amended— 50,000 or greater, or vate entities, organizations, neighborhood (1) by striking paragraph (1) and inserting ‘‘(II) 1,000 in any other case, or organizations, and community groups, par- the following new paragraph: ‘‘(ii) is entirely within an Indian reserva- ticularly those in the renewal zone, includ- ‘‘(1) IN GENERAL.—Except as provided in tion (as determined by the Secretary of the ing a commitment from such private entities paragraph (2), the applicable percentage is 15 Interior). to provide jobs and job training for, and percent.’’, ‘‘(3) ELIGIBILITY REQUIREMENTS.—A nomi- technical, financial, or other assistance to, (2) by inserting ‘‘and thereafter’’ after nated area meets the requirements of this employers, employees, and residents from ‘‘2005’’ in the table contained in paragraph paragraph if the State and the local govern- the renewal zone. (2), and ments in which it is located certify in writ- ‘‘(vi) The gift (or sale at below fair market (3) by striking the items relating to cal- ing (and the appropriate Secretary, after value) of surplus real property (such as land, endar years 2006 and 2007 in such table. such review of supporting data as such Sec- homes, and commercial or industrial struc- (b) ALL EMPOWERMENT ZONES ELIGIBLE FOR retary deems appropriate, accepts such cer- tures) in the renewal zone to neighborhood CREDIT.—Section 1396 is amended by striking tification) that— organizations, community development cor- subsection (e). ‘‘(A) the area is one of pervasive poverty, porations, or private companies. (c) CONFORMING AMENDMENT.—Subsection unemployment, and general distress, ‘‘(B) RECOGNITION OF PAST EFFORTS.—For (d) of section 1400 is amended to read as fol- ‘‘(B) the unemployment rate in the area, as purposes of this section, in evaluating the lows: determined by the most recent available course of action agreed to by any State or ‘‘(d) SPECIAL RULE FOR APPLICATION OF EM- 1 data, was at least 1 ⁄2 times the national un- local government, the appropriate Secretary PLOYMENT CREDIT.—With respect to the DC employment rate for the period to which shall take into account the past efforts of Zone, section 1396(d)(1)(B) (relating to em- such data relate, such State or local government in reducing powerment zone employment credit) shall be ‘‘(C) the poverty rate for each population the various burdens borne by employers and applied by substituting ‘the District of Co- census tract within the nominated area is at employees in the area involved. lumbia’ for ‘such empowerment zone’.’’. least 20 percent, and (d) EFFECTIVE DATE.—The amendments ‘‘(f) COORDINATION WITH TREATMENT OF EN- ‘‘(D) in the case of an urban area, at least made by this section shall apply to wages 70 percent of the households living in the TERPRISE COMMUNITIES.—For purposes of this title, the designation under section 1391 of paid or incurred after December 31, 2001. area have incomes below 80 percent of the SEC. 113. INCREASED EXPENSING UNDER SEC- median income of households within the ju- any area as an enterprise community shall cease to be in effect as of the date that the TION 179. risdiction of the local government (deter- (a) IN GENERAL.—Subparagraph (A) of sec- mined in the same manner as under section designation of any portion of such area as a renewal zone takes effect. tion 1397A(a)(1) is amended by striking 119(b)(2) of the Housing and Community De- ‘‘$20,000’’ and inserting ‘‘$35,000’’. velopment Act of 1974). ‘‘(g) DEFINITIONS AND SPECIAL RULES.—For (b) EXPENSING FOR PROPERTY USED IN DE- ‘‘(4) CONSIDERATION OF OTHER FACTORS.— purposes of this subchapter— VELOPABLE SITES.—Section 1397A is amended The appropriate Secretary, in selecting any ‘‘(1) APPROPRIATE SECRETARY.—The term by striking subsection (c). nominated area for designation as a renewal ‘appropriate Secretary’ has the meaning (c) EFFECTIVE DATE.—The amendments zone under this section— given such term by section 1393(a)(1). made by this section shall apply to taxable ‘‘(A) shall take into account— ‘‘(2) GOVERNMENTS.—If more than one gov- years beginning after December 31, 2001. ‘‘(i) the extent to which such area has a ernment seeks to nominate an area as a re- SEC. 114. HIGHER LIMITS ON TAX-EXEMPT EM- high incidence of crime, newal zone, any reference to, or requirement POWERMENT ZONE FACILITY ‘‘(ii) if such area has census tracts identi- of, this section shall apply to all such gov- BONDS. fied in the May 12, 1998, report of the General ernments. (a) IN GENERAL.—Paragraph (3) of section Accounting Office regarding the identifica- ‘‘(3) LOCAL GOVERNMENT.—The term ‘local 1394(f) (relating to bonds for empowerment tion of economically distressed areas, or government’ means— zones designated under section 1391(g)) is ‘‘(iii) if such area (or portion thereof) has ‘‘(A) any county, city, town, township, par- amended to read as follows: previously been designated as an enterprise ish, village, or other general purpose polit- ‘‘(3) EMPOWERMENT ZONE FACILITY BOND.— community under section 1391, and ical subdivision of a State, and For purposes of this subsection, the term ‘‘(B) with respect to 1 of the areas to be ‘‘(B) any combination of political subdivi- ‘empowerment zone facility bond’ means any designated under subsection (b)(2)(B), may, sions described in subparagraph (A) recog- bond which would be described in subsection in lieu of any criteria described in paragraph nized by the appropriate Secretary. (a) if— October 3, 2000 CONGRESSIONAL RECORD — SENATE S9707 ‘‘(A) in the case of obligations issued be- tion (December 31, 2001, in the case of a re- actment of this section (January 1, 2002, in fore January 1, 2002, only empowerment newal zone) and before January 1, 2010, at its the case of a renewal zone) or after December zones designated under section 1391(g) were original issue (directly or through an under- 31, 2014. taken into account under sections 1397C and writer) from the corporation solely in ex- ‘‘(3) CERTAIN RULES TO APPLY.—Rules simi- 1397D, and change for cash, lar to the rules of paragraphs (3), (4), and (5) ‘‘(B) in the case of obligations issued after ‘‘(ii) as of the time such stock was issued, of section 1400B(e) shall apply for purposes of December 31, 2001, all empowerment zones such corporation was an enterprise zone this subsection. (other than the District of Columbia) were business (or, in the case of a new corpora- ‘‘(d) CERTAIN RULES TO APPLY.—For pur- taken into account under sections 1397C and tion, such corporation was being organized poses of this section, rules similar to the 1397D.’’. for purposes of being an enterprise zone busi- rules of paragraphs (5), (6), and (7) of sub- (b) EFFECTIVE DATE.—The amendments ness), and section (b), and subsections (f ) and (g), of made by this section shall apply to obliga- ‘‘(iii) during substantially all of the tax- section 1400B shall apply; except that for tions issued after December 31, 2001. payer’s holding period for such stock, such such purposes section 1400B(g)(2) shall be ap- SEC. 115. EMPOWERMENT ZONE CAPITAL GAIN. corporation qualified as an enterprise zone plied by substituting— (a) IN GENERAL.—Part III of subchapter U business. ‘‘(1) ‘the day after the date of the enact- of chapter 1 is amended— ‘‘(B) REDEMPTIONS.—A rule similar to the ment of section 1397B’ for ‘January 1, 1998’, (1) by redesignating subpart C as subpart rule of section 1202(c)(3) shall apply for pur- and D; poses of this paragraph. ‘‘(2) ‘December 31, 2014’ for ‘December 31, (2) by redesignating sections 1397B and ‘‘(3) QUALIFIED EMPOWERMENT ZONE PART- 2011’. 1397C as sections 1397C and 1397D, respec- NERSHIP INTEREST.—The term ‘qualified em- ‘‘(e) REGULATIONS.—The Secretary shall tively; and powerment zone partnership interest’ means prescribe such regulations as may be appro- (3) by inserting after subpart B the fol- any capital or profits interest in a domestic priate to carry out the purposes of this sec- lowing new subpart: partnership if— tion, including regulations to prevent the ‘‘Subpart C—Empowerment Zone Capital ‘‘(A) such interest is acquired by the tax- avoidance of the purposes of this section.’’. Gain payer after the date of the enactment of this (b) CONFORMING AMENDMENTS.— ‘‘Sec. 1397B. Empowerment zone capital gain. section (December 31, 2001, in the case of a (1) Paragraph (2) of section 1394(b) is ‘‘SEC. 1397B. EMPOWERMENT ZONE CAPITAL renewal zone) and before January 1, 2010, amended— GAIN. from the partnership solely in exchange for (A) by striking ‘‘section 1397C’’ and insert- ‘‘(a) GENERAL RULE.—Gross income shall cash, ing ‘‘section 1397D’’; and not include qualified capital gain from the ‘‘(B) as of the time such interest was ac- (B) by striking ‘‘section 1397C(a)(2)’’ and sale or exchange of any qualified empower- quired, such partnership was an enterprise inserting ‘‘section 1397D(a)(2)’’. ment zone asset held for more than 5 years. zone business (or, in the case of a new part- (2) Paragraph (3) of section 1394(b) is ‘‘(b) PER TAXPAYER LIMITATION.— nership, such partnership was being orga- amended— ‘‘(1) IN GENERAL.—The amount of eligible nized for purposes of being an enterprise zone (A) by striking ‘‘section 1397B’’ each place gain which may be taken into account under business), and it appears and inserting ‘‘section 1397C’’; and subsection (a) for the taxable year with re- ‘‘(C) during substantially all of the tax- (B) by striking ‘‘section 1397B(d)’’ and in- spect to any taxpayer shall not exceed payer’s holding period for such interest, such serting ‘‘section 1397C(d)’’. $25,000,000, reduced by the aggregate amount partnership qualified as an enterprise zone (3) Sections 1400(e) and 1400B(c) are each of eligible gain taken into account under business. amended by striking ‘‘section 1397B’’ each subsection (a) for prior taxable years with place it appears and inserting ‘‘section A rule similar to the rule of section 1202(c)(3) respect to such taxpayer. 1397C’’. shall apply for purposes of this paragraph. ‘‘(2) ELIGIBLE GAIN.—For purposes of this (4) The table of subparts for part III of sub- ‘‘(4) QUALIFIED EMPOWERMENT ZONE BUSI- subsection, ‘eligible gain’’ means any gain chapter U of chapter 1 is amended by strik- NESS PROPERTY.— from the sale or exchange of a qualified em- ing the last item and inserting the following ‘‘(A) IN GENERAL.—The term ‘qualified em- powerment zone asset held for more than 5 new items: years. powerment zone business property’ means tangible property if— ‘‘Subpart C. Empowerment zone capital gain. ‘‘(3) TREATMENT OF MARRIED INDIVIDUALS.— ‘‘(i) such property was acquired by the tax- ‘‘(A) SEPARATE RETURNS.—In the case of a ‘‘Subpart D. General provisions.’’. payer by purchase (as defined in section separate return by a married individual, (5) The table of sections for subpart D of 179(d)(2)) after the date of the enactment of paragraph (1) shall be applied by substituting such part III is amended to read as follows: ‘$12,500,000’ for ‘$25,000,000’. this section (December 31, 2001, in the case of ‘‘Sec. 1397C. Enterprise zone business de- ‘‘(B) ALLOCATION OF EXCLUSION.—In the a renewal zone) and before January 1, 2010, fined. case of a joint return, the amount of gain ‘‘(ii) the original use of such property in taken into account under subsection (a) shall the empowerment zone commences with the ‘‘Sec. 1397D. Qualified zone property de- be allocated equally between the spouses for taxpayer, and fined.’’. purposes of applying this subsection to sub- ‘‘(iii) during substantially all of the tax- (c) EFFECTIVE DATE.—The amendments sequent taxable years. payer’s holding period for such property, made by this section shall apply to qualified ‘‘(C) MARITAL STATUS.—For purposes of substantially all of the use of such property empowerment zone assets acquired after the this subsection, marital status shall be de- was in an enterprise zone business of the tax- date of the enactment of this Act. termined under section 7703. payer. SEC. 116. FUNDING FOR ROUND II EMPOWER- ‘‘(4) TREATMENT OF CORPORATE TAX- ‘‘(B) SPECIAL RULE FOR SUBSTANTIAL IM- MENT ZONES. PAYERS.—For purposes of this subsection— PROVEMENTS.—The requirements of clauses (a) ENTITLEMENT.—Section 2007(a)(1) of the ‘‘(A) all corporations which are members of (i) and (ii) of subparagraph (A) shall be treat- Social Security Act (42 U.S.C. 1397f(a)(1)) is the same controlled group of corporations ed as satisfied with respect to— amended— (within the meaning of section 52(a)) shall be ‘‘(i) property which is substantially im- (1) in subparagraph (A), by striking ‘‘in the treated as 1 taxpayer, and proved by the taxpayer before January 1, State; and’’ and inserting ‘‘that is in the ‘‘(B) any gain excluded under subsection 2010, and State and is designated pursuant to section (a) by a predecessor of any C corporation ‘‘(ii) any land on which such property is lo- 1391(b) of the Internal Revenue Code of shall be treated as having been excluded by cated. 1986;’’; and such C corporation. The determination of whether a property is (2) by adding after subparagraph (B) the ‘‘(c) QUALIFIED EMPOWERMENT ZONE substantially improved shall be made under following new subparagraphs: ASSET.—For purposes of this section— clause (ii) of section 1400B(b)(4)(B), except ‘‘(C)(i) 1 grant under this section for each ‘‘(1) IN GENERAL.—The term ‘qualified em- that ‘the date of the enactment of this sec- qualified empowerment zone that is in an powerment zone asset’ means— tion’ shall be substituted for ‘December 31, urban area in the State and is designated ‘‘(A) any qualified empowerment zone 1997’ in such clause. pursuant to section 1391(g) of such Code; and stock, ‘‘(c) QUALIFIED CAPITAL GAIN.—For pur- ‘‘(ii) 1 grant under this section for each ‘‘(B) any qualified empowerment zone part- poses of this section— qualified empowerment zone that is in a nership interest, and ‘‘(1) IN GENERAL.—Except as otherwise pro- rural area in the State and is designated pur- ‘‘(C) any qualified empowerment zone busi- vided in this subsection, the term ‘qualified suant to section 1391(g) of such Code; and ness property. capital gain‘ means any gain recognized on ‘‘(D) 1 grant under this section for each ‘‘(2) QUALIFIED EMPOWERMENT ZONE the sale or exchange of— qualified enterprise community that is in STOCK.— ‘‘(A) a capital asset, or the State, is designated pursuant to section ‘‘(A) IN GENERAL.—Except as provided in ‘‘(B) property used in the trade or business 1391(b)(1) of such Code, and is in existence on subparagraph (B), the term ‘qualified em- (as defined in section 1231(b)). the date of enactment of this subpara- powerment zone stock’ means any stock in a ‘‘(2) GAIN BEFORE EFFECTIVE DATE OR AFTER graph.’’. domestic corporation if— 2014 NOT QUALIFIED.—The term ‘qualified cap- (b) AMOUNT OF GRANTS.—Section 2007(a)(2) ‘‘(i) such stock is acquired by the taxpayer ital gain’ shall not include any gain attrib- of the Social Security Act (42 U.S.C. after the date of the enactment of this sec- utable to periods before the date of the en- 1397f(a)(2)) is amended— S9708 CONGRESSIONAL RECORD — SENATE October 3, 2000 (1) in the heading of subparagraph (A), by ‘‘(I) included in the strategic plan of the on modified adjusted gross income) is inserting ‘‘ORIGINAL’’ before ‘‘EMPOWER- qualified empowerment zone or qualified en- amended— MENT’’; terprise community, consistent with this (1) by striking ‘‘$110,000’’ in subparagraph (2) in subparagraph (A), in the matter pre- section; and (A)(i) and inserting ‘‘$140,000’’, and ceding clause (i), by inserting ‘‘referred to in ‘‘(II) approved by the Secretary of Agri- (2) by inserting ‘‘($40,000 in the case of a paragraph (1)(A)’’ after ‘‘empowerment culture, in the case of a qualified empower- joint return)’’ after ‘‘$20,000’’ in subpara- zone’’; ment zone or qualified enterprise community graph (B). (3) by redesignating subparagraph (C) as in a rural area, or the Secretary of Housing (c) EFFECTIVE DATE.—The amendments subparagraph (F); and and Urban Development, in the case of a made by this section shall apply to taxable (4) by inserting after subparagraph (B) the qualified empowerment zone or qualified en- years beginning after December 31, 2000. following new subparagraphs: terprise community in an urban area. Subtitle D—New Markets Tax Credit ‘‘(C) ADDITIONAL EMPOWERMENT GRANTS.— ‘‘(B) RULES OF INTERPRETATION.— SEC. 131. NEW MARKETS TAX CREDIT. The amount of the grant to a State under ‘‘(i) If grant under this section is made di- (a) IN GENERAL.—Subpart D of part IV of this section for a qualified empowerment rectly to the governing body of an Indian subchapter A of chapter 1 (relating to busi- zone referred to in paragraph (1)(C) shall be— tribe under subparagraph (A), the tribe shall ness-related credits) is amended by adding at ‘‘(i) if the zone is in an urban area, be considered a State for purposes of this the end the following new section: $5,000,000 for fiscal year 2001; or section. ‘‘SEC. 45D. NEW MARKETS TAX CREDIT. ‘‘(ii) if the zone is in a rural area, $2,000,000 ‘‘(ii) This subparagraph shall not be con- ‘‘(a) ALLOWANCE OF CREDIT.— for fiscal year 2001. strued as making applicable to this section ‘‘(1) IN GENERAL.—For purposes of section ‘‘(D) ADDITIONAL ENTERPRISE COMMUNITY the provisions of the Indian Self-Determina- 38, in the case of a taxpayer who holds a GRANTS.—The amount of the grant to a State tion and Education Assistance Act.’’. qualified equity investment on a credit al- under this section for a qualified enterprise (2) DEFINITIONS.—Section 2007(f) of such lowance date of such investment which oc- community referred to in paragraph (1)(D) Act (42 U.S.C. 1397f(f)) is amended by adding curs during the taxable year, the new mar- shall be $250,000.’’. at the end the following new paragraph: kets tax credit determined under this section (c) TIMING OF GRANTS.—Section 2007(a)(3) of ‘‘(7) INDIAN TRIBE.—The term ‘Indian tribe’ for such taxable year is an amount equal to the Social Security Act (42 U.S.C. 1397f(a)(3)) means any Indian tribe, band, nation, or is amended— the applicable percentage of the amount paid other organized group or community, includ- (1) in the heading of subparagraph (A), by to the qualified community development en- ing any Alaska Native village or regional or tity for such investment at its original issue. inserting ‘‘ORIGINAL’’ before ‘‘QUALIFIED’’; village corporation as defined in or estab- (2) in subparagraph (A), in the matter pre- ‘‘(2) APPLICABLE PERCENTAGE.—For pur- lished pursuant to the Alaska Native Claims ceding clause (i), by inserting ‘‘referred to in poses of paragraph (1), the applicable per- Settlement Act, which is recognized as eligi- paragraph (1)(A)’’ after ‘‘empowerment centage is— ble for the special programs and services pro- zone’’; and ‘‘(A) 5 percent with respect to the first vided by the United States to Indians be- (3) by adding after subparagraph (B) the three credit allowance dates, and cause of their status as Indians.’’. following new subparagraphs: ‘‘(B) 6 percent with respect to the remain- der of the credit allowance dates. ‘‘(C) ADDITIONAL QUALIFIED EMPOWERMENT Subtitle C—Modification of Tax Incentives ‘‘(3) CREDIT ALLOWANCE DATE.—For pur- ZONES.—With respect to each qualified em- for DC Zone powerment zone referred to in paragraph SEC. 121. EXTENSION OF DC ZONE THROUGH 2006. poses of paragraph (1), the term ‘credit al- (1)(C), the Secretary shall make 1 grant (a) IN GENERAL.—The following provisions lowance date’ means, with respect to any under this section to the State in which the are amended by striking ‘‘2002’’ each place it qualified equity investment— zone lies, on January 1, 2002. appears and inserting ‘‘2006’’: ‘‘(A) the date on which such investment is initially made, and ‘‘(D) ADDITIONAL QUALIFIED ENTERPRISE (1) Section 1400(f). ‘‘(B) each of the six anniversary dates of COMMUNITIES.—With respect to each qualified (2) Section 1400A(b). enterprise community referred to in para- (b) ZERO CAPITAL GAINS RATE.—Section such date thereafter. ‘‘(b) QUALIFIED EQUITY INVESTMENT.—For graph (1)(D), the Secretary shall make 1 1400B (relating to zero percent capital gains purposes of this section— grant under this section to the State in rate) is amended— ‘‘(1) IN GENERAL.—The term ‘qualified eq- which the community lies on January 1, (1) by striking ‘‘2003’’ each place it appears uity investment’ means any equity invest- 2002.’’. and inserting ‘‘2007’’, and ment in a qualified community development (d) FUNDING.—Section 2007(a)(4) of the So- (2) by striking ‘‘2007’’ each place it appears cial Security Act (42 U.S.C. 1397f(a)(4)) is and inserting ‘‘2011’’. entity if— amended— SEC. 122. EXTENSION OF DC ZERO PERCENT CAP- ‘‘(A) such investment is acquired by the (1) by striking ‘‘(4) FUNDING.— ITAL GAINS RATE. taxpayer at its original issue (directly or $1,000,000,000’’ and inserting the following: (a) IN GENERAL.—Section 1400B (relating to through an underwriter) solely in exchange ‘‘(4) FUNDING.— zero percent capital gains rate) is amended for cash, ‘‘(A) ORIGINAL GRANTS.—$1,000,000,000’’; by adding at the end the following new sub- ‘‘(B) substantially all of such cash is used (2) by inserting ‘‘for empowerment zones section: by the qualified community development en- and enterprise communities described in sub- ‘‘(h) EXTENSION TO ENTIRE DISTRICT OF CO- tity to make qualified low-income commu- LUMBIA.—In applying this section to any paragraphs (A) and (B) of paragraph (1)’’ be- nity investments, and stock or partnership interest which is origi- fore the period; and ‘‘(C) such investment is designated for pur- nally issued after December 31, 2000, or any (3) by adding after and below the end the poses of this section by the qualified commu- tangible property acquired by the taxpayer following new subparagraphs: nity development entity. by purchase after December 31, 2000— ‘‘(B) ADDITIONAL EMPOWERMENT ZONE Such term shall not include any equity in- ‘‘(1) subsection (d) shall be applied without GRANTS.—$85,000,000 shall be made available vestment issued by a qualified community regard to paragraph (2) thereof, and to the Secretary for grants under this sec- development entity more than 5 years after ‘‘(2) subsections (e)(2) and (g)(2) shall be ap- tion for empowerment zones referred to in the date that such entity receives an alloca- plied by substituting ‘January 1, 2001’ for paragraph (1)(C). tion under subsection (f). Any allocation not ‘January 1, 1998’.’’. ‘‘(C) ADDITIONAL ENTERPRISE COMMUNITY used within such 5-year period may be reallo- (b) EFFECTIVE DATE.—The amendment cated by the Secretary under subsection (f). GRANTS.—$22,000,000 shall be made available made by this section shall take effect on ‘‘(2) LIMITATION.—The maximum amount of to the Secretary for grants under this sec- January 1, 2001. tion for enterprise communities referred to equity investments issued by a qualified SEC. 123. GROSS INCOME TEST FOR DC ZONE community development entity which may in paragraph (1)(D).’’. BUSINESSES. (e) DIRECT FUNDING FOR INDIAN TRIBES.— be designated under paragraph (1)(C) by such (a) IN GENERAL.—Section 1400B(c) (defining (1) IN GENERAL.—Section 2007(a) of the So- DC Zone business) is amended by adding entity shall not exceed the portion of the cial Security Act (42 U.S.C. 1397f(a)) is ‘‘and’’ at the end of paragraph (1), by strik- limitation amount allocated under sub- amended by adding at the end the following ing paragraph (2), and by redesignating para- section (f) to such entity. new paragraph: graph (3) as paragraph (2). ‘‘(3) SAFE HARBOR FOR DETERMINING USE OF ‘‘(5) DIRECT FUNDING FOR INDIAN TRIBES.— (b) EFFECTIVE DATE.—The amendment CASH.—The requirement of paragraph (1)(B) ‘‘(A) IN GENERAL.—The Secretary may made by this section shall apply to stock and shall be treated as met if at least 85 percent make a grant under this section directly to partnership interests originally issued after, of the aggregate gross assets of the qualified the governing body of an Indian tribe if— and property originally acquired by the tax- community development entity are invested ‘‘(i) the tribe is identified in the strategic payer after, December 31, 2000. in qualified low-income community invest- plan of a qualified empowerment zone or SEC. 124. EXPANSION OF DC HOMEBUYER TAX ments. qualified enterprise community as the entity CREDIT. ‘‘(4) TREATMENT OF SUBSEQUENT PUR- that assumes sole or primary responsibility (a) EXTENSION.—Section 1400C(i) (relating CHASERS.—The term ‘qualified equity invest- for carrying out activities and projects under to application of section) is amended by ment’ includes any equity investment which the grant; and striking ‘‘2002’’ and inserting ‘‘2004’’. would (but for paragraph (1)(A)) be a quali- ‘‘(ii) the grant is to be used for activities (b) EXPANSION OF INCOME LIMITATION.—Sec- fied equity investment in the hands of the and projects that are— tion 1400C(b)(1) (relating to limitation based taxpayer if such investment was a qualified October 3, 2000 CONGRESSIONAL RECORD — SENATE S9709

equity investment in the hands of a prior erty of such entity is attributable to non- ‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If holder. qualified financial property (as defined in the new markets tax credit limitation for ‘‘(5) REDEMPTIONS.—A rule similar to the section 1397C(e)). any calendar year exceeds the aggregate rule of section 1202(c)(3) shall apply for pur- ‘‘(B) PROPRIETORSHIP.—Such term shall in- amount allocated under paragraph (2) for poses of this subsection. clude any business carried on by an indi- such year, such limitation for the succeeding ‘‘(6) EQUITY INVESTMENT.—The term ‘equity vidual as a proprietor if such business would calendar year shall be increased by the investment’ means— meet the requirements of subparagraph (A) amount of such excess. No amount may be ‘‘(A) any stock (other than nonqualified were it incorporated. carried under the preceding sentence to any preferred stock as defined in section ‘‘(C) PORTIONS OF BUSINESS MAY BE QUALI- calendar year after 2013. 351(g)(2)) in an entity which is a corporation, FIED ACTIVE LOW-INCOME COMMUNITY BUSI- ‘‘(g) RECAPTURE OF CREDIT IN CERTAIN and NESS.—The term ‘qualified active low-income CASES.— ‘‘(B) any capital interest in an entity community business’ includes any trades or ‘‘(1) IN GENERAL.—If, at any time during which is a partnership. businesses which would qualify as a qualified the 7-year period beginning on the date of ‘‘(c) QUALIFIED COMMUNITY DEVELOPMENT active low-income community business if the original issue of a qualified equity in- ENTITY.—For purposes of this section— such trades or businesses were separately in- vestment in a qualified community develop- ‘‘(1) IN GENERAL.—The term ‘qualified com- corporated. ment entity, there is a recapture event with munity development entity’ means any do- ‘‘(3) QUALIFIED BUSINESS.—For purposes of respect to such investment, then the tax im- mestic corporation or partnership if— this subsection, the term ‘qualified business’ posed by this chapter for the taxable year in ‘‘(A) the primary mission of the entity is has the meaning given to such term by sec- which such event occurs shall be increased serving, or providing investment capital for, tion 1397C(d); except that— by the credit recapture amount. low-income communities or low-income per- ‘‘(A) in lieu of applying paragraph (2)(B) ‘‘(2) CREDIT RECAPTURE AMOUNT.—For pur- sons, thereof, the rental to others of real property poses of paragraph (1), the credit recapture ‘‘(B) the entity maintains accountability located in any low-income community shall amount is an amount equal to the sum of— to residents of low-income communities be treated as a qualified business if there are ‘‘(A) the aggregate decrease in the credits through their representation on any gov- substantial improvements located on such allowed to the taxpayer under section 38 for erning board of the entity or on any advisory property, and all prior taxable years which would have re- boards to the entity, and ‘‘(B) paragraph (3) thereof shall not apply. sulted if no credit had been determined ‘‘(C) the entity is certified by the Sec- ‘‘(e) LOW-INCOME COMMUNITY.—For pur- under this section with respect to such in- retary for purposes of this section as being a poses of this section— vestment, plus qualified community development entity. ‘‘(1) IN GENERAL.—The term ‘low-income ‘‘(B) interest at the underpayment rate es- ‘‘(2) SPECIAL RULES FOR CERTAIN ORGANIZA- community’ means any population census tablished under section 6621 on the amount TIONS.—The requirements of paragraph (1) tract if— determined under subparagraph (A) for each shall be treated as met by— ‘‘(A) the poverty rate for such tract is at prior taxable year for the period beginning ‘‘(A) any specialized small business invest- least 20 percent, or on the due date for filing the return for the ment company (as defined in section ‘‘(B)(i) in the case of a tract not located prior taxable year involved. 1044(c)(3)), and within a metropolitan area, the median fam- No deduction shall be allowed under this ‘‘(B) any community development finan- ily income for such tract does not exceed 80 chapter for interest described in subpara- cial institution (as defined in section 103 of percent of statewide median family income, graph (B). the Community Development Banking and or ‘‘(3) RECAPTURE EVENT.—For purposes of Financial Institutions Act of 1994 (12 U.S.C. ‘‘(ii) in the case of a tract located within a paragraph (1), there is a recapture event with 4702)). metropolitan area, the median family in- respect to an equity investment in a quali- ‘‘(d) QUALIFIED LOW-INCOME COMMUNITY IN- come for such tract does not exceed 80 per- fied community development entity if— VESTMENTS.—For purposes of this section— cent of the greater of statewide median fam- ‘‘(A) such entity ceases to be a qualified ‘‘(1) IN GENERAL.—The term ‘qualified low- ily income or the metropolitan area median community development entity, income community investment’ means— family income. ‘‘(B) the proceeds of the investment cease ‘‘(A) any capital or equity investment in, ‘‘(2) TARGETED AREAS.—The Secretary may to be used as required of subsection (b)(1)(B), or loan to, any qualified active low-income designate any area within any census tract or community business, as a low-income community if— ‘‘(C) such investment is redeemed by such ‘‘(B) the purchase from another commu- ‘‘(A) the boundary of such area is contin- entity. nity development entity of any loan made by uous, ‘‘(4) SPECIAL RULES.— such entity which is a qualified low-income ‘‘(B) the area would satisfy the require- ‘‘(A) TAX BENEFIT RULE.—The tax for the community investment, ments of paragraph (1) if it were a census taxable year shall be increased under para- ‘‘(C) financial counseling and other serv- tract, and graph (1) only with respect to credits allowed ices specified in regulations prescribed by ‘‘(C) an inadequate access to investment by reason of this section which were used to the Secretary to businesses located in, and capital exists in such area. reduce tax liability. In the case of credits residents of, low-income communities, and ‘‘(3) AREAS NOT WITHIN CENSUS TRACTS.—In not so used to reduce tax liability, the ‘‘(D) any equity investment in, or loan to, the case of an area which is not tracted for carryforwards and carrybacks under section any qualified community development enti- population census tracts, the equivalent 39 shall be appropriately adjusted. ty. county divisions (as defined by the Bureau of ‘‘(B) NO CREDITS AGAINST TAX.—Any in- ‘‘(2) QUALIFIED ACTIVE LOW-INCOME COMMU- the Census for purposes of defining poverty crease in tax under this subsection shall not NITY BUSINESS.— areas) shall be used for purposes of deter- be treated as a tax imposed by this chapter ‘‘(A) IN GENERAL.—For purposes of para- mining poverty rates and median family in- for purposes of determining the amount of graph (1), the term ‘qualified active low-in- come. any credit under this chapter or for purposes come community business’ means, with re- ‘‘(f) NATIONAL LIMITATION ON AMOUNT OF of section 55. spect to any taxable year, any corporation INVESTMENTS DESIGNATED.— ‘‘(h) BASIS REDUCTION.—The basis of any (including a nonprofit corporation) or part- ‘‘(1) IN GENERAL.—There is a new markets qualified equity investment shall be reduced nership if for such year— tax credit limitation for each calendar year. by the amount of any credit determined ‘‘(i) at least 50 percent of the total gross Such limitation is— under this section with respect to such in- income of such entity is derived from the ac- ‘‘(A) $1,000,000,000 for 2002, and vestment. This subsection shall not apply for tive conduct of a qualified business within ‘‘(B) $1,500,000,000 for 2003, 2004, 2005, and purposes of sections 1202, 1397B, and 1400B. any low-income community, 2006. ‘‘(i) REGULATIONS.—The Secretary shall ‘‘(ii) a substantial portion of the use of the ‘‘(2) ALLOCATION OF LIMITATION.—The limi- prescribe such regulations as may be appro- tangible property of such entity (whether tation under paragraph (1) shall be allocated priate to carry out this section, including owned or leased) is within any low-income by the Secretary among qualified commu- regulations— community, nity development entities selected by the ‘‘(1) which limit the credit for investments ‘‘(iii) a substantial portion of the services Secretary. In making allocations under the which are directly or indirectly subsidized by performed for such entity by its employees preceding sentence, the Secretary shall give other Federal tax benefits (including the are performed in any low-income commu- priority to any entity— credit under section 42 and the exclusion nity, ‘‘(A) with a record of having successfully from gross income under section 103), ‘‘(iv) less than 5 percent of the average of provided capital or technical assistance to ‘‘(2) which prevent the abuse of the pur- the aggregate unadjusted bases of the prop- disadvantaged businesses or communities, or poses of this section, erty of such entity is attributable to collect- ‘‘(B) which intends to satisfy the require- ‘‘(3) which provide rules for determining ibles (as defined in section 408(m)(2)) other ment under subsection (b)(1)(B) by making whether the requirement of subsection than collectibles that are held primarily for qualified low-income community invest- (b)(1)(B) is treated as met, sale to customers in the ordinary course of ments in 1 or more businesses in which per- ‘‘(4) which impose appropriate reporting re- such business, and sons unrelated to such entity (within the quirements, and ‘‘(v) less than 5 percent of the average of meaning of section 267(b) or 707(b)(1)) hold ‘‘(5) which apply the provisions of this sec- the aggregate unadjusted bases of the prop- the majority equity interest. tion to newly formed entities.’’. S9710 CONGRESSIONAL RECORD — SENATE October 3, 2000

(b) CREDIT MADE PART OF GENERAL BUSI- ‘‘(B) LIMITATION TO LINES OF BUSINESS.—A ‘‘(1) QUALIFIED INCOME TAXES.—The quali- NESS CREDIT.— domestic corporation shall be treated as a fied income taxes for any taxable year allo- (1) IN GENERAL.—Subsection (b) of section qualified domestic corporation under sub- cable to nonsheltered income shall be deter- 38 is amended by striking ‘‘plus’’ at the end paragraph (A) only with respect to the lines mined in the same manner as under section of paragraph (11), by striking the period at of business described in subparagraph (A) 936(i)(3). the end of paragraph (12) and inserting ‘‘, which it is actively conducting in Puerto ‘‘(2) QUALIFIED WAGES.—The qualified plus’’, and by adding at the end the following Rico during the taxable year. wages for any taxable year shall be deter- new paragraph: ‘‘(C) EXCEPTION FOR CORPORATIONS ELECT- mined in the same manner as under section ‘‘(13) the new markets tax credit deter- ING REDUCED CREDIT.—A domestic corpora- 936(i)(1). mined under section 45D(a).’’. tion shall not be treated as a qualified do- ‘‘(3) OTHER TERMS.—Any term used in this (2) LIMITATION ON CARRYBACK.—Subsection mestic corporation if such corporation (or section which is also used in section 936 shall (d) of section 39 is amended by adding at the any predecessor) had an election in effect have the same meaning given such term by end the following new paragraph: under section 936(a)(4)(B)(iii) for any taxable section 936.’’. ‘‘(9) NO CARRYBACK OF NEW MARKETS TAX year beginning after December 31, 1996.’’. (f) EFFECTIVE DATE.—The amendments CREDIT BEFORE JANUARY 1, 2002.—No portion of (b) APPLICATION ON SEPARATE LINE OF BUSI- made by this section shall apply to taxable the unused business credit for any taxable NESS BASIS; ELIGIBLE LINE OF BUSINESS.— years ending after December 31, 2000. year which is attributable to the credit Section 30A is amended by redesignating Subtitle F—Individual Development Accounts under section 45D may be carried back to a subsection (g) as subsection (h) and by in- SEC. 151. DEFINITIONS. taxable year ending before January 1, 2002.’’. serting after subsection (f) the following new As used in this subtitle: EDUCTION FOR NUSED REDIT subsection: (c) D U C .—Sub- (1) ELIGIBLE INDIVIDUAL.— section (c) of section 196 is amended by strik- ‘‘(g) APPLICATION ON LINE OF BUSINESS (A) IN GENERAL.—The term ‘‘eligible indi- BASIS; ELIGIBLE LINES OF BUSINESS.—For ing ‘‘and’’ at the end of paragraph (7), by vidual’’ means an individual who— purposes of this section— striking the period at the end of paragraph (i) has attained the age of 18 years; ‘‘(1) APPLICATION TO SEPARATE LINE OF BUSI- (8) and inserting ‘‘, and’’, and by adding at (ii) is a citizen or legal resident of the NESS.— the end the following new paragraph: United States; and ‘‘(A) IN GENERAL.—In determining the ‘‘(9) the new markets tax credit determined (iii) is a member of a household— amount of the credit under subsection (a), under section 45D(a).’’. (I) the gross income of which does not ex- (d) CLERICAL AMENDMENT.—The table of this section shall be applied separately with ceed 60 percent of the national median fam- sections for subpart D of part IV of sub- respect to each substantial line of business ily income (as published by the Bureau of the chapter A of chapter 1 is amended by adding of the qualified domestic corporation de- Census), as adjusted for family size; and at the end the following new item: scribed in subsection (a)(2)(A)(ii). (II) the net worth of which does not exceed ‘‘(B) ALLOCATION.—The Secretary shall pre- ‘‘Sec. 45D. New markets tax credit.’’. $10,000. scribe rules necessary to carry out the pur- (B) HOUSEHOLD.—The term ‘‘household’’ (e) EFFECTIVE DATE.—The amendments poses of this paragraph, including rules— means all individuals who share use of a made by this section shall apply to invest- ‘‘(i) for the allocation of items of income, dwelling unit as primary quarters for living ments made after December 31, 2001. gain, deduction, and loss for purposes of de- (f) REGULATIONS ON ALLOCATION OF NA- and eating separate from other individuals. termining taxable income under subsection TIONAL LIMITATION.—Not later than 120 days (C) DETERMINATION OF NET WORTH.— (a), and after the date of the enactment of this Act, (i) IN GENERAL.—For purposes of subpara- ‘‘(ii) for the allocation of wages, fringe the Secretary of the Treasury or the Sec- graph (A)(iii)(II), the net worth of a house- benefit expenses, and depreciation allow- retary’s delegate shall prescribe regulations hold is the amount equal to— ances for purposes of applying the limita- which specify— (I) the aggregate fair market value of all tions under subsection (d). (1) how entities shall apply for an alloca- assets that are owned in whole or in part by ‘‘(2) ELIGIBLE LINE OF BUSINESS.—The term tion under section 45D(f)(2) of the Internal any member of a household, minus ‘eligible line of business’ means a substantial Revenue Code of 1986, as added by this sec- (II) the obligations or debts of any member line of business established by a qualified do- tion; of the household. mestic corporation described in subsection (2) the competitive procedure through (ii) CERTAIN ASSETS DISREGARDED.—For (a)(2)(A)(ii) after December 31, 2000.’’. which such allocations are made; and purposes of determining the net worth of a (c) MODIFICATION OF BASE PERIOD CAP FOR (3) the actions that such Secretary or dele- household, a household’s assets shall not be EXISTING CLAIMANTS.—The last sentence of gate shall take to ensure that such alloca- section 30A(a)(1) (relating to allowance of considered to include— tions are properly made to appropriate enti- credit) is amended— (I) the primary dwelling unit; ties. (1) by striking ‘‘In’’ and inserting ‘‘With (II) 1 motor vehicle owned by the house- (g) AUDIT AND REPORT.—Not later than respect to any qualified domestic corpora- hold; and January 31 of 2004 and 2007, the Comptroller (III) the sum of all contributions by an eli- General of the United States shall, pursuant tion described in paragraph (2)(A)(i), in’’, (2) by inserting ‘‘the greater of’’ after ‘‘ex- gible individual (including earnings thereon) to an audit of the new markets tax credit to any Individual Development Account, plus program established under section 45D of the ceed’’, and (3) by inserting ‘‘, or such income multi- the matching deposits made on behalf of Internal Revenue Code of 1986 (as added by such individual (including earnings thereon) subsection (a)), report to Congress on such plied by the ratio of the average number of full-time employees of such taxpayers during in any parallel account. program, including all qualified community (2) INDIVIDUAL DEVELOPMENT ACCOUNT.—The development entities that receive an alloca- the taxable year to the average number of such full-time employees in 1995 and 1996’’ term ‘‘Individual Development Account’’ tion under the new markets credit under means an account established for an eligible such section. after ‘‘section 936(j)’’. (d) CREDIT TAKEN OVER 5-YEAR PERIOD.— individual as part of a qualified individual Subtitle E—Modification of Tax Incentives Section 30A, as amended by subsection (b), is development account program, but only if for Puerto Rico amended by redesignating subsection (h) as the written governing instrument creating SEC. 141. MODIFICATION OF PUERTO RICO ECO- subsection (i) and by inserting after sub- the account meets the following require- NOMIC ACTIVITY TAX CREDIT. section (g) the following new subsection: ments: (a) CORPORATIONS ELIGIBLE TO CLAIM CRED- ‘‘(h) CREDIT TAKEN OVER 5-YEAR PERIOD.— (A) The sole owner of the account is the el- IT.—Section 30A(a)(2) (defining qualified do- In the case of any qualified domestic cor- igible individual. mestic corporation) is amended to read as poration described in paragraph (2)(A)(ii), (B) No contribution will be accepted unless follows: the aggregate amount of the credit otherwise it is in cash, by check, by electronic fund ‘‘(2) QUALIFIED DOMESTIC CORPORATION.— determined under subsection (a) for any tax- transfer, or by electronic money order. For purposes of paragraph (1)— able year shall be allowed ratably over the 5- (C) The holder of the account is a qualified ‘‘(A) IN GENERAL.—A domestic corporation taxable year period beginning with such tax- financial institution, a qualified nonprofit shall be treated as a qualified domestic cor- able year.’’. organization, or an Indian tribe. poration for a taxable year if it is actively (e) CONFORMING AMENDMENTS.— (D) The assets of the account will not be conducting within Puerto Rico during the (1) Section 30A(a)(3) is amended by striking commingled with other property except in a taxable year— ‘‘an existing credit claimant’’ and inserting common trust fund or common investment ‘‘(i) a line of business with respect to which ‘‘a qualified domestic corporation’’. fund. the domestic corporation is an existing cred- (2) Section 30A(b) is amended by striking (E) Except as provided in section 156(b), it claimant under section 936(j)(9), or ‘‘within a possession’’ each place it appears any amount in the account may be paid out ‘‘(ii) with respect to taxable years ending and inserting ‘‘within Puerto Rico’’. only for the purpose of paying the qualified after December 31, 2000, an eligible line of (3) Section 30A(d) is amended by striking expenses of the eligible individual. business not described in clause (i) with re- ‘‘possession’’ each place it appears. (3) PARALLEL ACCOUNT.—The term ‘‘parallel spect to which the domestic corporation is (4) Section 30A(f) is amended to read as fol- account’’ means a separate, parallel indi- an existing credit claimant under section lows: vidual or pooled account for all matching 936(j)(9) (determined without regard to sub- ‘‘(f) DEFINITIONS.—For purposes of this funds and earnings dedicated to an eligible paragraph (B) thereof). section— individual as part of a qualified individual October 3, 2000 CONGRESSIONAL RECORD — SENATE S9711

development account program, the sole (I) IN GENERAL.—The term ‘‘qualified high- (A) An Individual Development Account to owner of which is a qualified financial insti- er education expenses’’ has the meaning which an eligible individual may contribute tution, a qualified nonprofit organization, or given such term by section 72(t)(7) of the In- money in accordance with section 154. an Indian tribe. ternal Revenue Code of 1986, determined by (B) A parallel account to which all match- (4) QUALIFIED FINANCIAL INSTITUTION.— treating postsecondary vocational edu- ing funds shall be deposited in accordance (A) IN GENERAL.—The term ‘‘qualified fi- cational schools as eligible educational insti- with section 155. nancial institution’’ means any person au- tutions. (2) TAILORED IDA PROGRAMS.—A qualified fi- thorized to be a trustee of any individual re- (II) POSTSECONDARY VOCATIONAL EDUCATION nancial institution, qualified nonprofit orga- tirement account under section 408(a)(2). SCHOOL.—The term ‘‘postsecondary voca- nization, or Indian tribe may tailor its quali- (B) RULE OF CONSTRUCTION.—Nothing in tional educational school’’ means an area vo- fied individual development account pro- this paragraph shall be construed as pre- cational education school (as defined in sub- gram to allow matching funds to be spent on venting a person described in subparagraph paragraph (C) or (D) of section 521(4) of the 1 or more of the categories of qualified ex- (A) from collaborating with 1 or more con- Carl D. Perkins Vocational and Applied penses. tractual affiliates, qualified nonprofit orga- Technology Education Act (20 U.S.C. 2471(4))) (c) TAX TREATMENT OF ACCOUNTS.—Any ac- nizations, or Indian tribes to carry out an in- which is in any State (as defined in section count described in subparagraph (B) of sub- dividual development account program es- 521(33) of such Act), as such sections are in section (b)(1) is exempt from taxation under tablished under section 152. effect on the date of the enactment of this the Internal Revenue Code of 1986 unless (5) QUALIFIED NONPROFIT ORGANIZATION.— Act. such account has ceased to be such an ac- The term ‘‘qualified nonprofit organization’’ (III) COORDINATION WITH OTHER BENEFITS.— count by reason of section 156(c) or the ter- means— The amount of qualified higher education ex- mination of the qualified individual develop- (A) any organization described in section penses for any taxable year shall be reduced ment account program under section 157(b). 501(c)(3) of the Internal Revenue Code of 1986 as provided in section 25A(g)(2) of such Code SEC. 153. PROCEDURES FOR OPENING AN INDI- and exempt from taxation under section and by the amount of such expenses for VIDUAL DEVELOPMENT ACCOUNT 501(a) of such Code; which a credit or exclusion is allowed under AND QUALIFYING FOR MATCHING (B) any community development financial chapter 1 of such Code for such taxable year. FUNDS. institution certified by the Community De- (iii) QUALIFIED FIRST-TIME HOMEBUYER (a) OPENING AN ACCOUNT.—An eligible indi- velopment Financial Institution Fund; or COSTS.—The term ‘‘qualified first-time home- vidual must open an Individual Development (C) any credit union chartered under Fed- buyer costs’’ means qualified acquisition Account with a qualified financial institu- eral or State law and certified by the Na- costs (as defined in section 72(t)(8) of such tion, qualified nonprofit organization, or In- tional Credit Union Administration, Code without regard to subparagraph (B) dian tribe and contribute money in accord- that meets standards for financial manage- thereof) with respect to a principal residence ance with section 154 to qualify for matching ment and fiduciary responsibility as defined (within the meaning of section 121 of such funds in a parallel account. by the Secretary or an organization des- Code) for a qualified first-time homebuyer (b) REQUIRED COMPLETION OF FINANCIAL ignated by the Secretary. (as defined in section 72(t)(8) of such Code). EDUCATION COURSE.— (6) INDIAN TRIBE.—The term ‘‘Indian tribe’’ (iv) QUALIFIED BUSINESS CAPITALIZATION OR (1) IN GENERAL.—Before becoming eligible means any Indian tribe as defined in section EXPANSION COSTS.— to withdraw matching funds to pay for quali- 4(12) of the Native American Housing Assist- (I) IN GENERAL.—The term ‘‘qualified busi- fied expenses, holders of Individual Develop- ance and Self-Determination Act of 1996 (25 ness capitalization or expansion costs’’ ment Accounts must complete a financial U.S.C. 4103(12), and includes any tribal sub- means qualified expenditures for the capital- education course offered by a qualified finan- sidiary, subdivision, or other wholly owned ization or expansion of a qualified business cial institution, a qualified nonprofit organi- tribal entity. pursuant to a qualified business plan. zation, an Indian tribe, or a government en- (7) QUALIFIED INDIVIDUAL DEVELOPMENT AC- (II) QUALIFIED EXPENDITURES.—The term tity. COUNT PROGRAM.—The term ‘‘qualified indi- ‘‘qualified expenditures’’ means expenditures (2) STANDARD AND APPLICABILITY OF vidual development account program’’ included in a qualified business plan, includ- COURSE.—The Secretary or an organization means a program established under section ing capital, plant, equipment, working cap- designated by the Secretary, in consultation 152 under which— ital, inventory expenses, attorney and ac- with representatives of qualified individual (A) Individual Development Accounts and counting fees, and other costs normally asso- development account programs and financial parallel accounts are held by a qualified fi- ciated with starting or expanding a business. educators, shall establish minimum perform- nancial institution, a qualified nonprofit or- (III) QUALIFIED BUSINESS.—The term ance standards for financial education ganization, or an Indian tribe; and ‘‘qualified business’’ means any business courses offered under paragraph (1) and a (B) additional activities determined by the that does not contravene any law. protocol to exempt eligible individuals from Secretary, or an organization designated by (IV) QUALIFIED BUSINESS PLAN.—The term the requirement under paragraph (1) because the Secretary, as necessary to responsibly ‘‘qualified business plan’’ means a business of hardship or lack of need. develop and administer accounts, including plan which meets such requirements as the SEC. 154. CONTRIBUTIONS TO INDIVIDUAL DE- recruiting, providing financial education and Secretary or an organization designated by VELOPMENT ACCOUNTS. other training to account holders, and reg- the Secretary may specify. (a) IN GENERAL.—Except in the case of a ular program monitoring, are carried out by (v) QUALIFIED ROLLOVERS.—The term qualified rollover, individual contributions such qualified financial institution, qualified ‘‘qualified rollover’’ means, with respect to to an Individual Development Account will nonprofit organization, or Indian tribe. any distribution from an Individual Develop- not be accepted for the taxable year in ex- (8) QUALIFIED EXPENSE DISTRIBUTION.— ment Account, the payment, within 120 days cess of the lesser of— (A) IN GENERAL.—The term ‘‘qualified ex- of such distribution, of all or a portion of (1) $2,000; or pense distribution’’ means any amount paid such distribution to such account or to an- (2) an amount equal to the sum of— (including through electronic payments) or other Individual Development Account es- (A) the compensation (as defined in section distributed out of an Individual Development tablished in another qualified financial insti- 219(f)(1) of the Internal Revenue Code of 1986) Account and a parallel account established tution, qualified nonprofit organization, or includible in the individual’s gross income for an eligible individual if such amount— Indian tribe for the benefit of the eligible in- for such taxable year; and (i) is used exclusively to pay the qualified dividual, or, if such individual is deceased, (B) in the case of an eligible individual who expenses of such individual or such individ- the spouse, any dependent, or other named has retired on disability (within the meaning ual’s spouse or dependents; beneficiary of the deceased. Rules similar to of section 22 of the Internal Revenue Code of (ii) is paid by the qualified financial insti- the rules of section 408(d)(3) of such Code 1986) before the close of the taxable year, any tution, qualified nonprofit organization, or (other than subparagraph (C) thereof) shall amount received as a disability benefit and Indian tribe directly to the person to whom apply for purposes of this clause. excluded from the individual’s gross income the amount is due or to another Individual (9) SECRETARY.—The term ‘‘Secretary’’ for such taxable year. Development Account; and means the Secretary of the Treasury. (b) PROOF OF COMPENSATION AND STATUS AS (iii) is paid after the holder of the Indi- AN ELIGIBLE INDIVIDUAL.—Federal W–2 forms SEC. 152. STRUCTURE AND ADMINISTRATION OF vidual Development Account has completed QUALIFIED INDIVIDUAL DEVELOP- and other forms specified by the Secretary a financial education course as required MENT ACCOUNT PROGRAMS. proving the eligible individual’s wages and under section 153(b). (a) ESTABLISHMENT OF QUALIFIED INDI- other compensation (including amounts de- (B) QUALIFIED EXPENSES.— VIDUAL DEVELOPMENT ACCOUNT PROGRAMS.— scribed in subsection (a)(2)(B)) and the status (i) IN GENERAL.—The term ‘‘qualified ex- Any qualified financial institution, qualified of the individual as an eligible individual penses’’ means any of the following: nonprofit organization, or Indian tribe may shall be presented at the time of the estab- (I) Qualified higher education expenses. establish 1 or more qualified individual de- lishment of the Individual Development Ac- (II) Qualified first-time homebuyer costs. velopment account programs which meet the count and at least once annually thereafter. (III) Qualified business capitalization or requirements of this subtitle. (c) DEEMED WITHDRAWALS OF EXCESS CON- expansion costs. (b) BASIC PROGRAM STRUCTURE.— TRIBUTIONS.—If the individual for whose ben- (IV) Qualified rollovers. (1) IN GENERAL.—All qualified individual efit an Individual Development Account is (ii) QUALIFIED HIGHER EDUCATION EX- development account programs shall consist established contributes an amount in excess PENSES.— of the following 2 components: of the amount allowed under subsection (a) S9712 CONGRESSIONAL RECORD — SENATE October 3, 2000 and fails to withdraw the excess contribution count holder may unilaterally withdraw Secretary, within 90 days after the end of plus the amount of net income attributable funds from the Individual Development Ac- each calendar year on— to such excess contribution on or before the count for purposes other than to pay quali- (1) the number of eligible individuals mak- day prescribed by law (including extensions fied expenses, but shall forfeit the cor- ing contributions into Individual Develop- of time) for filing such individual’s return of responding matching funds and interest ment Accounts; tax for the taxable year, such excess con- earned on the matching funds by doing so, (2) the amounts contributed into Indi- tribution and net income shall be deemed to unless such withdrawn funds are recontrib- vidual Development Accounts and deposited have been withdrawn on such day by such in- uted to such Account by September 30 fol- into parallel accounts for matching funds; dividual for purposes other than to pay lowing the withdrawal. (3) the amounts withdrawn from Individual qualified expenses. (c) DEEMED WITHDRAWALS FROM ACCOUNTS Development Accounts and parallel ac- (d) CROSS REFERENCE.— OF NONELIGIBLE INDIVIDUALS.—If the indi- counts, and the purposes for which such For designation of earned income tax cred- vidual for whose benefit an Individual Devel- amounts were withdrawn; it payments for deposit to an Individual De- opment Account is established ceases to be (4) the balances remaining in Individual velopment Account, see section 32(o) of the an eligible individual, such account shall Development Accounts and parallel ac- Internal Revenue Code of 1986. cease to be an Individual Development Ac- counts; and SEC. 155. DEPOSITS BY QUALIFIED INDIVIDUAL count as of the first day of the taxable year (5) such other information needed to help DEVELOPMENT ACCOUNT PRO- of such individual and any balance in such the Secretary, or an organization designated GRAMS. account shall be deemed to have been with- by the Secretary, monitor the cost and out- (a) PARALLEL ACCOUNTS.—The qualified fi- drawn on such first day by such individual comes of the qualified individual develop- nancial institution, qualified nonprofit orga- for purposes other than to pay qualified ex- ment account program. nization, or Indian tribe shall deposit all penses. (b) RESPONSIBILITIES OF THE SECRETARY OR matching funds for each Individual Develop- (d) TAX TREATMENT OF MATCHING FUNDS.— DESIGNATED ORGANIZATION.— ment Account into a parallel account at a Any amount withdrawn from a parallel ac- (1) MONITORING PROTOCOL.—Not later than qualified financial institution, qualified non- count shall not be includible in an eligible 12 months after the date of the enactment of profit organization, or Indian tribe. individual’s gross income. this Act, the Secretary, or an organization (b) REGULAR DEPOSITS OF MATCHING SEC. 157. CERTIFICATION AND TERMINATION OF designated by the Secretary, shall develop FUNDS.— QUALIFIED INDIVIDUAL DEVELOP- and implement a protocol and process to (1) IN GENERAL.—Subject to paragraph (2), MENT ACCOUNT PROGRAMS. monitor the cost and outcomes of the quali- the qualified financial institution, qualified (a) CERTIFICATION PROCEDURES.—Upon es- fied individual development account pro- nonprofit organization, or Indian tribe shall tablishing a qualified individual develop- grams established under section 152. not less than annually (or upon a proper ment account program under section 152, a (2) ANNUAL REPORTS.—In each year after withdrawal request under section 156, if nec- qualified financial institution, qualified non- the date of the enactment of this Act, the essary) deposit into the parallel account profit organization, or Indian tribe shall cer- Secretary, or an organization designated by with respect to each eligible individual the tify to the Secretary, or an organization des- the Secretary, shall submit a progress report following: ignated by the Secretary, on forms pre- to Congress on the status of such qualified (A) A dollar-for-dollar match for the first scribed by the Secretary or such organiza- individual development account programs. $300 contributed by the eligible individual tion and accompanied by any documentation Such report shall include from a representa- into an Individual Development Account required by the Secretary or such organiza- tive sample of qualified financial institu- with respect to any taxable year. tion, that— tions, qualified nonprofit organizations, and (B) Any matching funds provided by State, (1) the accounts described in subparagraphs Indian tribes a report on— local, or private sources in accordance to the (A) and (B) of section 152(b)(1) are operating (A) the characteristics of participants, in- matching ratio set by those sources. pursuant to all the provisions of this sub- cluding age, gender, race or ethnicity, mar- (2) CROSS REFERENCE.— title; and ital status, number of children, employment For allowance of tax credit for Individual (2) the qualified financial institution, status, and monthly income; Development Account subsidies, including qualified nonprofit organization, or Indian (B) individual level data on deposits, with- matching funds, see section 30B of the Inter- tribe agrees to implement an information drawals, balances, uses of Individual Devel- nal Revenue Code of 1986. system necessary to monitor the cost and opment Accounts, and participant character- outcomes of the qualified individual develop- istics; (c) FORFEITURE OF MATCHING FUNDS.— Matching funds that are forfeited under sec- ment account program. (C) the characteristics of qualified indi- (b) AUTHORITY TO TERMINATE QUALIFIED tion 156(b) shall be used by the qualified fi- vidual development account programs, in- IDA PROGRAM.—If the Secretary, or an orga- nancial institution, qualified nonprofit orga- cluding match rate, economic education re- nization designated by the Secretary, deter- nization, or Indian tribe to pay matches for quirements, permissible uses of accounts, mines that a qualified financial institution, other Individual Development Account con- staffing of programs in full time employees, qualified nonprofit organization, or Indian tributions by eligible individuals. and the total costs of programs; and (d) UNIFORM ACCOUNTING REGULATIONS.—To tribe under this subtitle is not operating a (D) process information on program imple- ensure proper recordkeeping and determina- qualified individual development account mentation and administration, especially on tion of the tax credit under section 30C of program in accordance with the require- problems encountered and how problems the Internal Revenue Code of 1986, the Sec- ments of this subtitle (and has not imple- were solved. retary shall prescribe regulations with re- mented any corrective recommendations di- SEC. 159. ACCOUNT FUNDS OF PROGRAM PAR- spect to accounting for matching funds from rected by the Secretary or such organiza- TICIPANTS DISREGARDED FOR PUR- all possible sources in the parallel accounts. tion), the Secretary or such organization POSES OF CERTAIN MEANS-TESTED FEDERAL PROGRAMS. (e) REGULAR REPORTING OF ACCOUNTS.— shall terminate such institution’s, nonprofit Any qualified financial institution, qualified organization’s, or Indian tribe’s authority to Notwithstanding any other provision of nonprofit organization, or Indian tribe shall conduct the program. If the Secretary, or an Federal law that requires consideration of 1 report the balances in any Individual Devel- organization designated by the Secretary, is or more financial circumstances of an indi- opment Account and parallel account of an unable to identify a qualified financial insti- vidual, for the purposes of determining eligi- eligible individual on not less than an annual tution, qualified nonprofit organization, or bility to receive, or the amount of, any as- basis. Indian tribe to assume the authority to con- sistance or benefit authorized by such provi- duct such program, then any account estab- sion to be provided to or for the benefit of SEC. 156. WITHDRAWAL PROCEDURES. such individual, an amount equal to the sum (a) WITHDRAWALS FOR QUALIFIED EX- lished for the benefit of any eligible indi- of— PENSES.—To withdraw money from an eligi- vidual under such program shall cease to be (1) all contributions by an eligible indi- ble individual’s Individual Development Ac- an Individual Development Account as of the vidual (including earnings thereon) to any count to pay qualified expenses of such indi- first day of such termination and any bal- Individual Development Account; plus vidual or such individual’s spouse or depend- ance in such account shall be deemed to have (2) the matching deposits made on behalf of ents, the qualified financial institution, been withdrawn on such first day by such in- such individual (including earnings thereon) qualified nonprofit organization, or Indian dividual for purposes other than to pay in any parallel account, tribe shall directly transfer such funds from qualified expenses. shall be disregarded for such purpose with re- the Individual Development Account, and, if SEC. 158. REPORTING, MONITORING, AND EVAL- spect to any period during which the indi- UATION. applicable, from the parallel account elec- vidual participates in a qualified individual (a) RESPONSIBILITIES OF QUALIFIED FINAN- tronically to the vendor or other Individual development account program established CIAL INSTITUTIONS, QUALIFIED NONPROFIT OR- Development Account. If the vendor is not under section 152. equipped to receive funds electronically, the GANIZATIONS, AND INDIAN TRIBES.—Each qualified financial institution, qualified non- SEC. 160. MATCHING FUNDS FOR INDIVIDUAL DE- qualified financial institution, qualified non- VELOPMENT ACCOUNTS PROVIDED profit organization, or Indian tribe may profit organization, or Indian tribe that es- THROUGH A TAX CREDIT FOR issue such funds by paper check to the ven- tablishes a qualified individual development QUALIFIED FINANCIAL INSTITU- dor. account program under section 152 shall re- TIONS. (b) WITHDRAWALS FOR NONQUALIFIED EX- port annually to the Secretary, directly or (a) IN GENERAL.—Subpart B of part IV of PENSES.—An Individual Development Ac- through an organization designated by the subchapter A of chapter 1 (relating to other October 3, 2000 CONGRESSIONAL RECORD — SENATE S9713 credits) is amended by inserting after section year of the tax imposed by this chapter, such is amended by striking ‘‘qualified elemen- 30A the following new section: individual may designate that a specified tary or secondary educational contribution’’ ‘‘SEC. 30B. INDIVIDUAL DEVELOPMENT ACCOUNT portion (not less than $1) of any overpay- each place it occurs in the headings and text INVESTMENT CREDIT FOR QUALI- ment of tax for such taxable year which is and inserting ‘‘qualified computer contribu- FIED FINANCIAL INSTITUTIONS. attributable to the credit allowed under this tion’’. ‘‘(a) DETERMINATION OF AMOUNT.—There section shall be deposited by the Secretary (2) EXPANSION OF ELIGIBLE DONEES.—Clause shall be allowed as a credit against the appli- into an Individual Development Account (as (i) of section 170(e)(6)(B) (relating to quali- cable tax for the taxable year an amount defined in section 151(2) of such Act) of such fied elementary or secondary educational equal to the individual development account individual. The Secretary shall so deposit contribution) is amended by striking ‘‘or’’ at investment provided by a qualified financial such portion designated under this para- the end of subclause (I), by adding ‘‘or’’ at institution during the taxable year under an graph. the end of subclause (II), and by inserting individual development account program es- ‘‘(2) MANNER AND TIME OF DESIGNATION.—A after subclause (II) the following new sub- tablished under section 152 of the Commu- designation under paragraph (1) may be clause: nity Renewal and New Markets Act of 2000. made with respect to any taxable year— ‘‘(III) a public library (within the meaning ‘‘(b) APPLICABLE TAX.—For the purposes of ‘‘(A) at the time of filing the return of the of section 213(2)(A) of the Library Services this section, the term ‘applicable tax’ means tax imposed by this chapter for such taxable and Technology Act (20 U.S.C. 9122(2)(A)), as the excess (if any) of— year, or in effect on the date of the enactment of the ‘‘(1) the tax imposed under this chapter ‘‘(B) at any other time (after the time of Community Renewal and New Markets Act (other than the taxes imposed under the pro- filing the return of the tax imposed by this of 2000, established and maintained by an en- visions described in subparagraphs (C) chapter for such taxable year) specified in tity described in subsection (c)(1),’’. through (Q) of section 26(b)(2)), over regulations prescribed by the Secretary. (b) CONFORMING AMENDMENTS.— ‘‘(2) the credits allowable under subpart B Such designation shall be made in such man- (1) Section 170(e)(6)(B)(iv) is amended by (other than this section) and subpart D of ner as the Secretary prescribes by regula- striking ‘‘in any grades of the K–12’’. this part. tions. (2) The heading of paragraph (6) of section ‘‘(c) INDIVIDUAL DEVELOPMENT ACCOUNT IN- ‘‘(3) PORTION ATTRIBUTABLE TO EARNED IN- 170(e) is amended by striking ‘‘ELEMENTARY VESTMENT.—For purposes of this section, the COME TAX CREDIT.—For purposes of paragraph OR SECONDARY SCHOOL PURPOSES’’ and insert- term ‘individual development account in- (1), an overpayment for any taxable year ing ‘‘EDUCATIONAL PURPOSES’’. vestment’ means, with respect to an indi- shall be treated as attributable to the credit (c) EXTENSION OF DEDUCTION.—Section vidual development account program of a allowed under this section for such taxable 170(e)(6)(F) (relating to termination) is qualified financial institution in any taxable year to the extent that such overpayment amended by striking ‘‘December 31, 2000’’ and year, an amount equal to the sum of— does not exceed the credit so allowed. inserting ‘‘December 31, 2003’’. ‘‘(1) 90 percent of the aggregate amount of ‘‘(4) OVERPAYMENTS TREATED AS RE- (d) EFFECTIVE DATE.—The amendments dollar-for-dollar matches under such pro- FUNDED.—For purposes of this title, any por- made by this section shall apply to contribu- gram by such institution under section tion of an overpayment of tax designated tions made on and after the date of the en- 155(b)(1)(A) of the Community Renewal and under paragraph (1) shall be treated as being actment of this Act. New Markets Act of 2000 for such taxable refunded to the taxpayer as of the last date SEC. 173. EXTENSION OF ADOPTION TAX CREDIT. year, plus prescribed for filing the return of tax im- Section 23(d)(2)(B) (defining eligible child) ‘‘(2) an amount equal to the sum of the posed by this chapter (determined without is amended by striking ‘‘2001’’ and inserting costs incurred, directly or indirectly, with regard to extensions) or, if later, the date ‘‘2003’’. respect to each Individual Development Ac- the return is filed. SEC. 174. TAX TREATMENT OF ALASKA NATIVE count opened after the date of the enactment ‘‘(5) TERMINATION.—This subsection shall SETTLEMENT TRUSTS. of this section, not to exceed $100 per Ac- not apply to any taxable year beginning (a) TREATMENT OF ALASKA NATIVE SETTLE- count. after December 31, 2005.’’. MENT TRUSTS.—Subpart A of part I of sub- ‘‘(d) OTHER DEFINITIONS.—For purposes of (b) EFFECTIVE DATE.—The amendment chapter J of chapter 1 (relating to general this section, the terms ‘Individual Develop- made by this section shall apply to taxable rules for taxation of trusts and estates) is ment Account’ and ‘qualified financial insti- years beginning after December 31, 2001. amended by adding at the end the following tution’ have the meanings given such terms Subtitle G—Additional Incentives new section: by section 151 of the Community Renewal SEC. 171. EXCLUSION OF CERTAIN AMOUNTS RE- ‘‘SEC. 646. TAX TREATMENT OF ALASKA NATIVE and New Markets Act of 2000. CEIVED UNDER THE NATIONAL SETTLEMENT TRUSTS. ‘‘(e) REGULATIONS.—The Secretary may HEALTH SERVICE CORPS SCHOLAR- ‘‘(a) IN GENERAL.—Except as otherwise pro- prescribe such regulations as may be nec- SHIP PROGRAM AND THE F. EDWARD vided in this section, the provisions of this essary or appropriate to carry out this sec- HEBERT ARMED FORCES HEALTH subchapter and section 1(e) shall apply to all tion, including regulations providing for a PROFESSIONS SCHOLARSHIP AND Settlement Trusts. FINANCIAL ASSISTANCE PROGRAM. recapture of the credit allowed under this ‘‘(b) TAXATION OF INCOME OF TRUST.—Ex- (a) IN GENERAL.—Section 117(c) (relating to section in cases where there is a forfeiture cept as provided in subsection (f)(1)(B)(ii)— under section 156(b) of the Community Re- the exclusion from gross income amounts re- ceived as a qualified scholarship) is ‘‘(1) IN GENERAL.—The amount of tax im- newal and New Markets Act of 2000 in a sub- posed on an electing Settlement Trust under sequent taxable year of any amount which amended— (1) by striking ‘‘Subsections (a)’’ and in- section 1(e) shall be determined using the was taken into account in determining the rate of 15 percent. amount of such credit. serting the following: ‘‘(1) IN GENERAL.—Except as provided in ‘‘(2) CAPITAL GAIN.—In the case of an elect- ‘‘(f) TERMINATION.—This section shall not ing Settlement Trust with a net capital gain apply to any taxable year beginning after paragraph (2), subsections (a)’’, and (2) by adding at the end the following new for the taxable year, a tax is imposed on December 31, 2005.’’. such gain at the rate of tax which would (b) CONFORMING AMENDMENT.—The table of paragraph: ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply to such gain if the taxpayer were sub- sections for subpart B of part IV of sub- ject to a tax on ordinary income at a rate of chapter A of chapter 1 is amended by insert- apply to any amount received by an indi- vidual under— 15 percent. ing after the item relating to section 30A the ‘‘(c) ONE TIME ELECTION.— following new item: ‘‘(A) the National Health Service Corps Scholarship Program under section ‘‘(1) IN GENERAL.—A Settlement Trust may ‘‘Sec. 30B. Individual development account 338A(g)(1)(A) of the Public Health Service elect to have the provisions of this section investment credit for qualified Act, or apply to the trust and its beneficiaries. financial institutions.’’. ‘‘(B) the Armed Forces Health Professions ‘‘(2) TIME AND METHOD OF ELECTION.—An (c) EFFECTIVE DATE.—The amendments Scholarship and Financial Assistance pro- election under paragraph (1) shall be made made by this section shall apply to taxable gram under subchapter I of chapter 105 of by the trustee of such trust— years beginning after December 31, 2001. title 10, United States Code.’’. ‘‘(A) on or before the due date (including SEC. 161. DESIGNATION OF EARNED INCOME TAX (b) EFFECTIVE DATE.—The amendments extensions) for filing the Settlement Trust’s CREDIT PAYMENTS FOR DEPOSIT TO made by subsection (a) shall apply to return of tax for the first taxable year of INDIVIDUAL DEVELOPMENT AC- amounts received in taxable years beginning such trust ending after the date of the enact- COUNTS. after December 31, 1993. ment of this section, and (a) IN GENERAL.—Section 32 (relating to SEC. 172. EXTENSION OF ENHANCED DEDUCTION ‘‘(B) by attaching to such return of tax a earned income credit) is amended by adding FOR CORPORATE DONATIONS OF statement specifically providing for such at the end the following new subsection: COMPUTER TECHNOLOGY. election. ‘‘(o) DESIGNATION OF CREDIT FOR DEPOSIT (a) EXPANSION OF COMPUTER TECHNOLOGY ‘‘(3) PERIOD ELECTION IN EFFECT.—Except as TO INDIVIDUAL DEVELOPMENT ACCOUNT.— DONATIONS TO PUBLIC LIBRARIES.— provided in subsection (f), an election under ‘‘(1) IN GENERAL.—With respect to the re- (1) IN GENERAL.—Paragraph (6) of section this subsection— turn of any eligible individual (as defined in 170(e) (relating to special rule for contribu- ‘‘(A) shall apply to the first taxable year section 151(1) of the Community Renewal and tions of computer technology and equipment described in paragraph (2)(A) and all subse- New Markets Act of 2000) for the taxable for elementary or secondary school purposes) quent taxable years, and S9714 CONGRESSIONAL RECORD — SENATE October 3, 2000

‘‘(B) may not be revoked once it is made. ‘‘(2) STOCK IN CORPORATION.—If— ‘‘(c) REQUIRED INFORMATION.—The informa- ‘‘(d) CONTRIBUTIONS TO TRUST.— ‘‘(A) the Settlement Common Stock in the tion required under this subsection shall ‘‘(1) BENEFICIARIES OF ELECTING TRUST NOT sponsoring Native Corporation may be dis- include— TAXED ON CONTRIBUTIONS.—In the case of an posed of to a person in any manner not per- ‘‘(1) the amount of distributions made dur- electing Settlement Trust, no amount shall mitted by section 7(h) of the Alaska Native ing the taxable year to each beneficiary, be includible in gross income of a beneficiary Claims Settlement Act (43 U.S.C. 1606(h)), ‘‘(2) the treatment of such distribution of such trust by reason of a contribution to and under the applicable provision of section 646, such trust made during the taxable year. ‘‘(B) at any time after such disposition of including the amount that is excludable ‘‘(2) EARNINGS AND PROFITS.—The earnings stock is first permitted, such corporation from the recipient beneficiary’s gross income and profits of the sponsoring Native Corpora- transfers assets to a Settlement Trust, under section 646, and tion of a Settlement Trust shall not be re- paragraph (1)(B) shall be applied to such ‘‘(3) the amount (if any) of any distribution duced on account of any contribution to such trust on and after the date of the transfer in during such year that is deemed to have been Settlement Trust. the same manner as if the trust permitted made by the sponsoring Native Corporation ‘‘(e) TAX TREATMENT OF DISTRIBUTIONS TO dispositions of beneficial interests in the (as defined in section 646(h)(5)). BENEFICIARIES.—Amounts distributed by an trust in a manner not permitted by such sec- ‘‘(d) SPONSORING NATIVE CORPORATION.— electing Settlement Trust during any tax- tion 7(h). ‘‘(1) IN GENERAL.—The electing Settlement able year shall be considered as having the ‘‘(3) CERTAIN DISTRIBUTIONS.—For purposes Trust shall, on or before the date on which following characteristics in the hands of the of this section, the surrender of an interest the statement under subsection (a) is re- recipient beneficiary: in a Native Corporation or an electing Set- quired to be filed, furnish such statement to ‘‘(1) First, as amounts excludable from tlement Trust in order to accomplish the the sponsoring Native Corporation (as so de- gross income for the taxable year to the ex- whole or partial redemption of the interest fined). tent of the taxable income of such trust for of a shareholder or beneficiary in such cor- ‘‘(2) DISTRIBUTEES.—The sponsoring Native such taxable year (decreased by any income poration or trust, or to accomplish the whole Corporation shall furnish each recipient of a tax paid by the trust with respect to the in- or partial liquidation of such corporation or distribution described in section 646(e)(3) a come) plus any amount excluded from gross trust, shall be deemed to be a disposition statement containing the amount deemed to income of the trust under section 103. permitted by section 7(h) of the Alaska Na- have been distributed to such recipient by ‘‘(2) Second, as amounts excludable from tive Claims Settlement Act (43 U.S.C. such corporation for the taxable year.’’. gross income to the extent of the amount de- 1606(h)). (c) CLERICAL AMENDMENT.— (1) The table of sections for subpart A of scribed in paragraph (1) for all taxable years ‘‘(g) TAXABLE INCOME.— For purposes of for which an election was in effect under sub- this title, the taxable income of an electing part I of subchapter J of chapter 1 is amend- section (c) with respect to the trust, and not Settlement Trust shall be determined under ed by adding at the end the following new previously taken into account under para- section 641(b) without regard to any deduc- item: graph (1). tion under section 651 or 661. ‘‘Sec. 646. Electing Alaska Native Settlement ‘‘(3) Third, for purposes of this title other ‘‘(h) DEFINITIONS.—For purposes of this Trusts.’’. than subsections (b) and (d) of section 301 section— and section 311(b), as amounts distributed by (2) The table of sections for subpart A of ‘‘(1) ELECTING SETTLEMENT TRUST.—The the sponsoring Native Corporation with re- part III of subchapter A of chapter 61 of sub- term ‘electing Settlement Trust’ means a title F is amended by inserting after the spect to its stock (within the meaning of sec- Settlement Trust which has made the elec- tion 301(a)) during such taxable year and tax- item relating to section 6039G the following tion, effective for the taxable year, described new item: able to the recipient beneficiary as amounts in subsection (c). described in section 301(c)(1), to the extent of ‘‘(2) NATIVE CORPORATION.—The term ‘Na- ‘‘Sec. 6039H. Information with respect to current and accumulated earnings and prof- tive Corporation’ has the meaning given Alaska Native Settlement its of the sponsoring Native Corporation as such term by section 3(m) of the Alaska Na- Trusts and sponsoring Native of the close of such taxable year after proper tive Claims Settlement Act (43 U.S.C. Corporations.’’. adjustment is made for all distributions 1602(m)). (d) EFFECTIVE DATE.—The amendments made by the sponsoring Native Corporation ‘‘(3) SETTLEMENT COMMON STOCK.—The term made by this section shall apply to taxable during such taxable year. ‘Settlement Common Stock’ has the mean- years ending after the date of the enactment ‘‘(4) Fourth, as amounts distributed by the ing given such term by section 3(p) of the of this Act and to contributions made to trust in excess of the distributable net in- Alaska Native Claims Settlement Act (43 electing Settlement Trusts for such year or come of such trust for such taxable year. U.S.C. 1602(p)). any subsequent year. ‘‘(f) SPECIAL RULES WHERE TRANSFER RE- ‘‘(4) SETTLEMENT TRUST.—The term ‘Settle- SEC. 175. TREATMENT OF INDIAN TRIBAL GOV- STRICTIONS MODIFIED.— ment Trust’ has the meaning given such ERNMENTS UNDER FEDERAL UNEM- ‘‘(1) TRANSFER OF BENEFICIAL INTERESTS.— term by section 3(t) of the Alaska Native PLOYMENT TAX ACT. If, at any time, a beneficial interest in an Claims Settlement Act (43 U.S.C. 1602(t)). (a) IN GENERAL.—Section 3306(c)(7) (defin- electing Settlement Trust may be disposed ‘‘(5) SPONSORING NATIVE CORPORATION.—The ing employment) is amended— of to a person in a manner which would not term ‘sponsoring Native Corporation’ means (1) by inserting ‘‘or in the employ of an In- be permitted by section 7(h) of the Alaska the Native Corporation which transfers as- dian tribe,’’ after ‘‘service performed in the Native Claims Settlement Act (43 U.S.C. sets to an electing Settlement Trust. employ of a State, or any political subdivi- 1606(h)) if the interest were Settlement Com- ‘‘(i) CROSS REFERENCE.— sion thereof,’’; and mon Stock— (2) by inserting ‘‘or Indian tribes’’ after ‘‘For information required with respect to ‘‘(A) no election may be made under sub- ‘‘wholly owned by one or more States or po- electing Settlement Trusts and sponsoring section (c) with respect to such trust, and litical subdivisions’’. Native Corporations, see section 6039H.’’ ‘‘(B) if such an election is in effect as of (b) PAYMENTS IN LIEU OF CONTRIBUTIONS.— such time— (b) REPORTING.—Subpart A of part III of Section 3309 (relating to State law coverage ‘‘(i) such election shall cease to apply as of subchapter A of chapter 61 of subtitle F (re- of services performed for nonprofit organiza- the first day of the taxable year in which lating to information concerning persons tions or governmental entities) is amended— such disposition is first permitted, subject to special provisions) is amended by (1) in subsection (a)(2) by inserting ‘‘, in- ‘‘(ii) the provisions of this section shall not inserting after section 6039G the following cluding an Indian tribe,’’ after ‘‘the State apply to such trust for such taxable year and new section: law shall provide that a governmental enti- all taxable years thereafter, and ‘‘SEC. 6039H. INFORMATION WITH RESPECT TO ty’’; ‘‘(iii) the distributable net income of such ALASKA NATIVE SETTLEMENT (2) in subsection (b)(3)(B) by inserting ‘‘, or trust shall be increased by the current and TRUSTS AND SPONSORING NATIVE of an Indian tribe’’ after ‘‘of a State or polit- accumulated earnings and profits of the CORPORATIONS. ical subdivision thereof’’; sponsoring Native Corporation as of the ‘‘(a) REQUIREMENT.—The fiduciary of an (3) in subsection (b)(3)(E) by inserting ‘‘or close of such taxable year after proper ad- electing Settlement Trust (as defined in sec- tribal’’ after ‘‘the State’’; and justment is made for all distributions made tion 646(h)(1)) shall include with the return (4) in subsection (b)(5) by inserting ‘‘or of by the sponsoring Native Corporation during of income of the trust a statement con- an Indian tribe’’ after ‘‘an agency of a State such taxable year. taining the information required under sub- or political subdivision thereof’’. In no event shall the increase under clause section (c). (c) STATE LAW COVERAGE.—Section 3309 (iii) exceed the fair market value of the ‘‘(b) APPLICATION WITH OTHER REQUIRE- (relating to State law coverage of services trust’s assets as of the date the beneficial in- MENTS.—The filing of any statement under performed for nonprofit organizations or terest of the trust first becomes disposable. this section shall be in lieu of the reporting governmental entities) is amended by adding The earnings and profits of the sponsoring requirement under section 6034A to furnish at the end the following new subsection: Native Corporation shall be adjusted as of any statement to a beneficiary regarding ‘‘(d) ELECTION BY INDIAN TRIBE.—The State the last day of such taxable year by the amounts distributed to such beneficiary (and law shall provide that an Indian tribe may amount of earnings and profits so included in such other reporting requirements as the make contributions for employment as if the the distributable net income of the trust. Secretary deems appropriate). employment is within the meaning of section October 3, 2000 CONGRESSIONAL RECORD — SENATE S9715

3306 or make payments in lieu of contribu- ‘‘(ii) the greater of— ‘‘(b) DOLLAR LIMITATION.—The credit al- tions under this section, and shall provide ‘‘(I) $1.75 multiplied by the State popu- lowed by subsection (a) with respect to any that an Indian tribe may make separate elec- lation, or residence of a taxpayer shall not exceed tions for itself and each subdivision, sub- ‘‘(II) $2,000,000,’’. $20,000 ($10,000 in the case of a married indi- sidiary, or business enterprise wholly owned (b) ADJUSTMENT OF STATE CEILING FOR IN- vidual filing a separate return). by such Indian tribe. State law may require CREASES IN COST-OF-LIVING.—Paragraph (3) of a tribe to post a payment bond or take other section 42(h) (relating to housing credit dol- ‘‘(c) CARRYFORWARD OF CREDIT UNUSED BY reasonable measures to assure the making of lar amount for agencies) is amended by add- REASON OF LIMITATION BASED ON TAX LIABIL- payments in lieu of contributions under this ing at the end the following new subpara- ITY.—If the credit allowable under subsection section. Notwithstanding the requirements graph: (a) for any taxable year exceeds the limita- of section 3306(a)(6), if, within 90 days of hav- ‘‘(H) COST-OF-LIVING ADJUSTMENT.—In the tion imposed by section 26(a) for such tax- ing received a notice of delinquency, a tribe case of a calendar year after 2001, each of the able year reduced by the sum of the credits fails to made contributions, payments in lieu dollar amounts contained in subparagraph allowable under this subpart (other than this of contributions, or payment of penalties or (C)(ii) shall be increased by an amount equal section), such excess shall be carried to the interest (at amounts or rates comparable to to— succeeding taxable year (but not for more those applied to all other employers covered ‘‘(i) such dollar amount, multiplied by than 10 taxable years succeeding the first under the State law) assessed with respect to ‘‘(ii) the cost-of-living adjustment deter- taxable year in which the credit under this such failure, or if the tribe fails to post a re- mined under section 1(f)(3) for such calendar section is allowed to the taxpayer) and added quired payment bond, then service for the year by substituting ‘calendar year 2000’ for to the credit allowable under subsection (a) tribe shall not be excepted from employment ‘calendar year 1992’ in subparagraph (B) for such succeeding taxable year. under section 3306(c)(7) until any such failure thereof. ‘‘(d) QUALIFIED REHABILITATION EXPENDI- is corrected. This subsection shall apply to If any increase determined under the pre- TURE.—For purposes of this section— an Indian tribe within the meaning of sec- ceding sentence is not a multiple of 5 cents ‘‘(1) IN GENERAL.—The term ‘qualified reha- tion 4(e) of the Indian Self-Determination ($5,000 in the case of the dollar amount in bilitation expenditure’ means any amount and Education Assistance Act (25 U.S.C. subparagraph (C)(ii)(II)), such increase shall properly chargeable to capital account— 450b(e)).’’. be rounded to the nearest multiple thereof.’’. ‘‘(A) in connection with the certified reha- (d) DEFINITIONS.—Section 3306 (relating to (c) CONFORMING AMENDMENTS.— bilitation of a qualified historic home, and definitions) is amended by adding at the end (1) Section 42(h)(3)(C), as amended by sub- ‘‘(B) for property for which depreciation the following new subsection: section (a), is amended— would be allowable under section 168 if the ‘‘(u) INDIAN TRIBE.—For purposes of this qualified historic home were used in a trade chapter, the term ‘Indian tribe’ has the (A) by striking ‘‘clause (ii)’’ in the matter or business. meaning given to such term by section 4(e) following clause (iv) and inserting ‘‘clause ‘‘(2) CERTAIN EXPENDITURES NOT IN- of the Indian Self-Determination and Edu- (i)’’, and CLUDED.— cation Assistance Act (25 U.S.C. 450b(e)), and (B) by striking ‘‘clauses (i)’’ in the matter ‘‘(A) EXTERIOR.—Such term shall not in- includes any subdivision, subsidiary, or busi- following clause (iv) and inserting ‘‘clauses ness enterprise wholly owned by such an In- (ii)’’. clude any expenditure in connection with the dian tribe.’’. (2) Section 42(h)(3)(D)(ii) is amended— rehabilitation of a building unless at least 5 (e) EFFECTIVE DATE; TRANSITION RULE.— (A) by striking ‘‘subparagraph (C)(ii)’’ and percent of the total expenditures made in the (1) EFFECTIVE DATE.—The amendments inserting ‘‘subparagraph (C)(i)’’, and rehabilitation process are allocable to the made by this section shall apply to service (B) by striking ‘‘clauses (i)’’ in subclause rehabilitation of the exterior of such build- performed on or after the date of the enact- (II) and inserting ‘‘clauses (ii)’’. ing. ment of this Act. (d) EFFECTIVE DATE.—The amendments ‘‘(B) OTHER RULES TO APPLY.—Rules similar (2) TRANSITION RULE.—For purposes of the made by this section shall apply to calendar to the rules of clauses (ii) and (iii) of section Federal Unemployment Tax Act, service per- years after 2000. 47(c)(2)(B) shall apply. formed in the employ of an Indian tribe (as SEC. 202. MODIFICATION TO RULES RELATING TO ‘‘(3) MIXED USE OR MULTIFAMILY BUILDING.— defined in section 3306(u) of the Internal Rev- BASIS OF BUILDING WHICH IS ELIGI- If only a portion of a building is used as the BLE FOR CREDIT. enue Code of 1986 (as added by this section)) principal residence of the taxpayer, only (a) CERTAIN NATIVE AMERICAN HOUSING AS- shall not be treated as employment (within qualified rehabilitation expenditures which SISTANCE DISREGARDED IN DETERMINING the meaning of section 3306 of such Code) if— are properly allocable to such portion shall WHETHER BUILDING IS FEDERALLY SUBSIDIZED be taken into account under this section. (A) it is service which is performed before FOR PURPOSES OF THE LOW-INCOME HOUSING the date of the enactment of this Act and CREDIT.—Subparagraph (E) of section 42(i)(2) ‘‘(e) CERTIFIED REHABILITATION.—For pur- with respect to which the tax imposed under (relating to determination of whether build- poses of this section— the Federal Unemployment Tax Act has not ing is federally subsidized) is amended— ‘‘(1) IN GENERAL.—Except as otherwise pro- been paid, and (1) in clause (i), by inserting ‘‘or the Native vided in this subsection, the term ‘certified (B) such Indian tribe reimburses a State American Housing Assistance and Self-De- rehabilitation’ has the meaning given such unemployment fund for unemployment bene- termination Act of 1996 (25 U.S.C. 4101 et term by section 47(c)(2)(C). fits paid for service attributable to such seq.) (as in effect on October 1, 1997)’’ after ‘‘(2) FACTORS TO BE CONSIDERED IN THE CASE tribe for such period. ‘‘this subparagraph)’’, and OF TARGETED AREA RESIDENCES, ETC.— SEC. 176. INCREASE IN SOCIAL SERVICES BLOCK (2) in the subparagraph heading, by insert- ‘‘(A) IN GENERAL.—For purposes of applying GRANT FOR FY 2001. ing ‘‘OR NATIVE AMERICAN HOUSING ASSIST- section 47(c)(2)(C) under this section with re- (a) IN GENERAL.—Section 2003(c) of the So- ANCE’’ after ‘‘HOME ASSISTANCE’’. spect to the rehabilitation of a building to cial Security Act (42 U.S.C. 1397b(c)) is (b) EFFECTIVE DATE.—The amendments which this paragraph applies, consideration amended— made by this section shall apply to— shall be given to— (1) in paragraph (10), by striking ‘‘and’’ at (1) housing credit dollar amounts allocated ‘‘(i) the feasibility of preserving existing the end; after December 31, 2000, and architectural and design elements of the in- (2) in paragraph (11), by striking ‘‘2001’’ and (2) buildings placed in service after such terior of such building, inserting ‘‘2002’’; date to the extent paragraph (1) of section ‘‘(ii) the risk of further deterioration or (3) by redesignating paragraph (11) (as so 42(h) of the Internal Revenue Code of 1986 demolition of such building in the event that amended) as paragraph (12); and does not apply to any building by reason of certification is denied because of the failure (4) by inserting after paragraph (10), the paragraph (4) thereof, but only with respect to preserve such interior elements, and following new paragraph: to bonds issued after such date. ‘‘(iii) the effects of such deterioration or ‘‘(11) $2,400,000,000 for the fiscal year 2001; Subtitle B—Historic Homes demolition on neighboring historic prop- and’’. SEC. 211. TAX CREDIT FOR RENOVATING HIS- erties. (b) EFFECTIVE DATE.—The amendments ‘‘(B) BUILDINGS TO WHICH THIS PARAGRAPH made by subsection (a) take effect October 1, TORIC HOMES. (a) IN GENERAL.—Subpart A of part IV of APPLIES.—This paragraph shall apply with 2000. subchapter A of chapter 1 (relating to non- respect to any building— TITLE II—TAX INCENTIVES FOR refundable personal credits) is amended by ‘‘(i) any part of which is a targeted area AFFORDABLE HOUSING inserting after section 25A the following new residence within the meaning of section Subtitle A—Low-Income Housing Credit section: 143(j)(1), or SEC. 201. MODIFICATION OF STATE CEILING ON ‘‘SEC. 25B. HISTORIC HOMEOWNERSHIP REHA- ‘‘(ii) which is located within an enterprise LOW-INCOME HOUSING CREDIT. BILITATION CREDIT. community or empowerment zone as des- (a) IN GENERAL.—Clauses (i) and (ii) of sec- ‘‘(a) GENERAL RULE.—In the case of an indi- ignated under section 1391, tion 42(h)(3)(C) (relating to State housing vidual, there shall be allowed as a credit but shall not apply with respect to any credit ceiling) are amended to read as fol- against the tax imposed by this chapter for building which is listed in the National Reg- lows: the taxable year an amount equal to 20 per- ister. ‘‘(i) the unused State housing credit ceiling cent of the qualified rehabilitation expendi- ‘‘(3) APPROVED STATE PROGRAM.—The term (if any) of such State for the preceding cal- tures made by the taxpayer with respect to ‘certified rehabilitation’ includes a certifi- endar year, a qualified historic home. cation made by— S9716 CONGRESSIONAL RECORD — SENATE October 3, 2000 ‘‘(A) a State Historic Preservation Officer poration (as defined in such section), such ‘‘(ii) the proceeds of which may not be used who administers a State Historic Preserva- stockholder shall be treated as owning the for any purpose other than the acquisition or tion Program approved by the Secretary of house or apartment which the taxpayer is rehabilitation of such building, and the Interior pursuant to section 101(b)(1) of entitled to occupy as such stockholder. ‘‘(D) in exchange for which such lending in- the National Historic Preservation Act, as in ‘‘(8) ALLOCATION OF EXPENDITURES RELAT- stitution provides the taxpayer— effect on July 21, 1999, or ING TO EXTERIOR OF BUILDING CONTAINING CO- ‘‘(i) a reduction in the rate of interest on ‘‘(B) a local government, certified pursuant OPERATIVE OR CONDOMINIUM UNITS.—The per- the loan which results in interest payment to section 101(c)(1) of the National Historic centage of the total expenditures made in reductions which are substantially equiva- Preservation Act, as in effect on July 21, the rehabilitation of a building containing lent on a present value basis to the face 1999, and authorized by a State Historic cooperative or condominium residential amount of such certificate, or Preservation Officer, or the Secretary of the units allocated to the rehabilitation of the ‘‘(ii) if the taxpayer so elects with respect Interior where there is no approved State exterior of the building shall be attributed to a specified amount of the face amount of program), proportionately to each cooperative or con- such a certificate relating to a building— subject to such terms and conditions as may dominium residential unit in such building ‘‘(I) which is a targeted area residence be specified by the Secretary of the Interior for which a credit under this section is within the meaning of section 143(j)(1), or for the rehabilitation of buildings within the claimed. ‘‘(II) which is located in an enterprise com- jurisdiction of such officer (or local govern- ‘‘(g) WHEN EXPENDITURES TAKEN INTO AC- munity or empowerment zone as designated ment) for purposes of this section. COUNT.—In the case of a building other than under section 1391, ‘‘(f) DEFINITIONS AND SPECIAL RULES.—For a building to which subsection (h) applies, a payment which is substantially equivalent purposes of this section— qualified rehabilitation expenditures shall be to such specified amount to be used to re- ‘‘(1) QUALIFIED HISTORIC HOME.—The term treated for purposes of this section as made duce the taxpayer’s cost of purchasing the ‘qualified historic home’ means a certified on the date the rehabilitation is completed. building (and only the remainder of such face historic structure— ‘‘(h) ALLOWANCE OF CREDIT FOR PURCHASE amount shall be taken into account under ‘‘(A) which has been substantially rehabili- OF REHABILITATED HISTORIC HOME.— clause (i)). tated, and ‘‘(1) IN GENERAL.—In the case of a qualified ‘‘(3) METHOD OF DISCOUNTING.—The present ‘‘(B) which (or any portion of which)— purchased historic home, the taxpayer shall value under paragraph (2)(D)(i) shall be ‘‘(i) is owned by the taxpayer, and be treated as having made (on the date of determined— ‘‘(ii) is used (or will, within a reasonable purchase) the qualified rehabilitation ex- ‘‘(A) for a period equal to the term of the period, be used) by such taxpayer as his prin- penditures made by the seller of such home. loan referred to in subparagraph (D)(i), cipal residence. For purposes of the preceding sentence, ex- ‘‘(B) by using the convention that any pay- ‘‘(2) SUBSTANTIALLY REHABILITATED.—The penditures made by the seller shall be ment on such loan in any taxable year with- term ‘substantially rehabilitated’ has the deemed to be qualified rehabilitation expend- in such period is deemed to have been made meaning given such term by section itures if such expenditures, if made by the on the last day of such taxable year, 47(c)(1)(C); except that, in the case of any purchaser, would be qualified rehabilitation ‘‘(C) by using a discount rate equal to 65 building described in subsection (e)(2), clause expenditures. percent of the average of the annual Federal (i)(I) thereof shall not apply. ‘‘(2) QUALIFIED PURCHASED HISTORIC HOME.— mid-term rate and the annual Federal long- ‘‘(3) PRINCIPAL RESIDENCE.—The term ‘prin- For purposes of this subsection, the term term rate applicable under section 1274(d)(1) cipal residence’ has the same meaning as ‘qualified purchased historic home’ means to the month in which the taxpayer makes when used in section 121. any substantially rehabilitated certified his- an election under paragraph (1) and com- ‘‘(4) CERTIFIED HISTORIC STRUCTURE.— toric structure purchased by the taxpayer pounded annually, and ‘‘(A) IN GENERAL.—The term ‘certified his- if— ‘‘(D) by assuming that the credit allowable toric structure’ means any building (and its ‘‘(A) the taxpayer is the first purchaser of under this section for any year is received on structural components) which— such structure after the date rehabilitation the last day of such year. ‘‘(i) is listed in the National Register, or is completed, and the purchase occurs within ‘‘(4) USE OF CERTIFICATE BY LENDER.—The ‘‘(ii) is located in a registered historic dis- 5 years after such date, amount of the credit specified in the certifi- trict (as defined in section 47(c)(3)(B)) within ‘‘(B) the structure (or a portion thereof) cate shall be allowed to the lender only to which only qualified census tracts (or por- will, within a reasonable period, be the prin- offset the regular tax (as defined in section tions thereof) are located, and is certified by cipal residence of the taxpayer, 55(c)) of such lender. The lender may carry the Secretary of the Interior to the Sec- ‘‘(C) no credit was allowed to the seller forward all unused amounts under this sub- retary as being of historic significance to the under this section or section 47 with respect section until exhausted. district. to such rehabilitation, and ‘‘(5) HISTORIC REHABILITATION MORTGAGE ‘‘(B) CERTAIN STRUCTURES INCLUDED.—Such ‘‘(D) the taxpayer is furnished with such CREDIT CERTIFICATE NOT TREATED AS TAXABLE term includes any building (and its struc- information as the Secretary determines is INCOME.—Notwithstanding any other provi- tural components) which is designated as necessary to determine the credit under this sion of law, no benefit accruing to the tax- being of historic significance under a statute subsection. payer through the use of an historic rehabili- of a State or local government, if such stat- ‘‘(i) HISTORIC REHABILITATION MORTGAGE tation mortgage credit certificate shall be ute is certified by the Secretary of the Inte- CREDIT CERTIFICATE.— treated as taxable income for purposes of rior to the Secretary as containing criteria ‘‘(1) IN GENERAL.—The taxpayer may elect, this title. which will substantially achieve the purpose in lieu of the credit otherwise allowable ‘‘(j) RECAPTURE.— of preserving and rehabilitating buildings of under this section, to receive a historic reha- ‘‘(1) IN GENERAL.—If, before the end of the historic significance. bilitation mortgage credit certificate. An 5-year period beginning on the date on which ‘‘(C) QUALIFIED CENSUS TRACTS.—For pur- election under this paragraph shall be the rehabilitation of the building is com- poses of subparagraph (A)(ii)— made— pleted (or, if subsection (h) applies, the date ‘‘(i) IN GENERAL.—The term ‘qualified cen- ‘‘(A) in the case of a building to which sub- of purchase of such building by the taxpayer, sus tract’ means a census tract in which the section (h) applies, at the time of purchase, or, if subsection (i) applies, the date of the median family income is less than twice the or loan)— statewide median family income. ‘‘(B) in any other case, at the time reha- ‘‘(A) the taxpayer disposes of such tax- ‘‘(ii) DATA USED.—The determination under bilitation is completed. payer’s interest in such building, or clause (i) shall be made on the basis of the ‘‘(2) HISTORIC REHABILITATION MORTGAGE ‘‘(B) such building ceases to be used as the most recent decennial census for which data CREDIT CERTIFICATE.—For purposes of this principal residence of the taxpayer, are available. subsection, the term ‘historic rehabilitation the taxpayer’s tax imposed by this chapter ‘‘(5) REHABILITATION NOT COMPLETE BEFORE mortgage credit certificate’ means a for the taxable year in which such disposi- CERTIFICATION.—A rehabilitation shall not be certificate— tion or cessation occurs shall be increased by treated as complete before the date of the ‘‘(A) issued to the taxpayer, in accordance the recapture percentage of the credit al- certification referred to in subsection (e). with procedures prescribed by the Secretary, lowed under this section for all prior taxable ‘‘(6) LESSEES.—A taxpayer who leases his with respect to a certified rehabilitation, years with respect to such rehabilitation. principal residence shall, for purposes of this ‘‘(B) the face amount of which shall be ‘‘(2) RECAPTURE PERCENTAGE.—For pur- section, be treated as the owner thereof if equal to the credit which would (but for this poses of paragraph (1), the recapture percent- the remaining term of the lease (as of the subsection) be allowable under subsection (a) age shall be determined in accordance with date determined under regulations pre- to the taxpayer with respect to such reha- the following table: scribed by the Secretary) is not less than bilitation, ‘‘If the disposition or The recapture such minimum period as the regulations re- ‘‘(C) which may only be transferred by the cessation occurs percentage is— quire. taxpayer to a lending institution (including within— ‘‘(7) TENANT-STOCKHOLDER IN COOPERATIVE a non-depository institution) in connection (i) One full year after the taxpayer 100 HOUSING CORPORATION.—If the taxpayer holds with a loan— becomes entitled to the credit. stock as a tenant-stockholder (as defined in ‘‘(i) that is secured by the building with re- (ii) One full year after the close of 80 section 216) in a cooperative housing cor- spect to which the credit relates, and the period described in clause (i). October 3, 2000 CONGRESSIONAL RECORD — SENATE S9717 ‘‘If the disposition or The recapture ‘‘(ii) the outstanding principal amount of SEC. 232. MORTGAGE FINANCING FOR RESI- cessation occurs percentage is— any other indebtedness secured by such prop- DENCES LOCATED IN PRESI- within— erty. DENTIALLY DECLARED DISASTER AREAS. (iii) One full year after the close of 60 ‘‘(2) QUALIFIED RESIDENTIAL INDEBTED- (a) IN GENERAL.—Paragraph (11) of section the period described in clause (ii). NESS.— 143(k) of the Internal Revenue Code of 1986 is (iv) One full year after the close of 40 ‘‘(A) IN GENERAL.—The term ‘qualified resi- amended to read as follows: the period described in clause (iii). dential indebtedness’ means indebtedness ‘‘(11) SPECIAL RULES FOR RESIDENCES LO- (v) One full year after the close of 20. which— CATED IN DISASTER AREAS.— the period described in clause (iv). ‘‘(i) was incurred or assumed by the tax- ‘‘(A) HOME IMPROVEMENT LOANS FOR RE- ‘‘(k) BASIS ADJUSTMENTS.—For purposes of payer in connection with real property used PAIRS.—In the case of financing provided by this subtitle, if a credit is allowed under this as the principal residence of the taxpayer section for any expenditure with respect to a qualified home improvement loan for the (within the meaning of section 121) and is se- any property (including any purchase under repair of damage to a residence located in a cured by such real property, subsection (h) and any transfer under sub- disaster area which was sustained as a result ‘‘(ii) is incurred or assumed to acquire, section (i)), the increase in the basis of such of the disaster— construct, reconstruct, or substantially im- property which would (but for this sub- ‘‘(i) the limitation under paragraph (4) section) result from such expenditure shall prove such real property, and shall be increased (but not above $100,000) to be reduced by the amount of the credit so al- ‘‘(iii) with respect to which such taxpayer the extent such loan is for the repair of such lowed. makes an election to have this paragraph damage, and ‘‘(l) DENIAL OF DOUBLE BENEFIT.—No credit apply. ‘‘(ii) subsection (f) (relating to income re- shall be allowed under this section for any ‘‘(B) REFINANCED INDEBTEDNESS.—Such quirement) shall be applied as if such resi- amount for which credit is allowed under term shall include indebtedness resulting dence were a targeted area residence. section 47. from the refinancing of indebtedness under ‘‘(B) PURCHASE OF REPLACEMENT HOME.—In ‘‘(m) REGULATIONS.—The Secretary shall subparagraph (A)(ii), but only to the extent the case of financing provided to acquire a prescribe such regulations as may be appro- the refinanced indebtedness does not exceed residence located in a disaster area by mort- priate to carry out the purposes of this sec- the amount of the indebtedness being refi- gagors whose prior residence was in such tion, including regulations where less than nanced. area and was destroyed or otherwise ren- all of a building is used as a principal resi- ‘‘(C) EXCEPTIONS.—Such term shall not in- dered uninhabitable as a result of the dence and where more than 1 taxpayer use clude qualified farm indebtedness or quali- disaster— the same dwelling unit as their principal res- fied real property business indebtedness.’’. ‘‘(i) subsection (d) (relating to 3-year re- idence.’’. (c) CONFORMING AMENDMENTS.— quirement) shall not apply, and (b) CONFORMING AMENDMENTS.— (1) Paragraph (2) of section 108(a) is ‘‘(ii) subsections (e) and (f) (relating to (1) Section 23(c) is amended by striking purchase price requirement and income re- ‘‘section 1400C’’ and inserting ‘‘sections 25B amended— (A) by striking ‘‘and (D)’’ in subparagraph quirement) shall be applied as if such resi- and 1400C’’. dence were a targeted area residence. (2) Section 25(e)(1)(C) is amended by strik- (A) and inserting ‘‘(D), and (E)’’, and ‘‘(C) FINANCING MUST BE PROVIDED WITHIN 2 ing ‘‘23’’ and inserting ‘‘23, 25B,’’. (B) by amending subparagraph (B) to read as follows: YEARS AFTER DISASTER DECLARATION.—This (3) Section 1016(a) is amended by striking paragraph shall apply only to financing pro- ‘‘and’’ at the end of paragraph (26), by strik- ‘‘(B) INSOLVENCY EXCLUSION TAKES PRECE- DENCE OVER QUALIFIED FARM EXCLUSION; vided within 2 years after the date of the dis- ing the period at the end of paragraph (27) aster declaration. and inserting ‘‘, and’’, and by adding at the QUALIFIED REAL PROPERTY BUSINESS EXCLU- SION; AND QUALIFIED RESIDENTIAL SHORTFALL ‘‘(D) DISASTER AREA.—For purposes of this end the following new item: paragraph, the term ‘disaster area’ means an ‘‘(28) to the extent provided in section EXCLUSION.—Subparagraphs (C), (D), and (E) of paragraph (1) shall not apply to a dis- area determined by the President to warrant 25B(k).’’. assistance from the Federal Government (4) Section 1400C(d) is amended by insert- charge to the extent the taxpayer is insol- vent.’’. under the Robert T. Stafford Disaster Relief ing ‘‘and section 25B’’ after ‘‘this section’’. and Emergency Assistance Act (as in effect (c) CLERICAL AMENDMENT.—The table of (2) Paragraph (1) of section 108(b) is amend- on the date of the enactment of the Tax- sections for subpart A of part IV of sub- ed by striking ‘‘or (C)’’ and inserting ‘‘(C), or payer Relief Act of 1997) and with respect to chapter A of chapter 1 is amended by insert- (E)’’. which the Federal share of disaster pay- ing after the item relating to section 25A the (3) Subsection (c) of section 121 is amended ments exceeds 75 percent. following new item: by adding at the end the following new para- ‘‘(E) APPLICATION OF PARAGRAPH.—This graph: ‘‘Sec. 25B. Historic homeownership rehabili- paragraph shall apply only with respect to ‘‘(3) SPECIAL RULE RELATING TO DISCHARGE tation credit.’’. bonds issued after December 31, 2000.’’. OF INDEBTEDNESS.—The amount of gain (d) EFFECTIVE DATE.—The amendments (b) EFFECTIVE DATE.—The amendment made by this section shall apply to expenses which (but for this paragraph) would be ex- made by this section shall apply to bonds paid or incurred in taxable years beginning cluded from gross income under subsection issued after December 31, 2000. after December 31, 2001. (a) with respect to a principal residence shall be reduced by the amount excluded from Subtitle E—Property and Casualty Insurance Subtitle C—Forgiven Mortgage Obligations gross income under section 108(a)(1)(E) with SEC. 241. EXEMPTION FROM INCOME TAX FOR SEC. 221. EXCLUSION FROM GROSS INCOME FOR respect to such residence.’’. STATE-CREATED ORGANIZATIONS CERTAIN FORGIVEN MORTGAGE OB- PROVIDING PROPERTY AND CAS- LIGATIONS. (d) EFFECTIVE DATE.—The amendments UALTY INSURANCE FOR PROPERTY (a) IN GENERAL.—Paragraph (1) of section made by this section shall apply to dis- FOR WHICH SUCH COVERAGE IS 108(a) (relating to exclusion from gross in- charges after the date of the enactment of OTHERWISE UNAVAILABLE. (a) IN GENERAL.—Subsection (c) of section come) is amended by striking ‘‘or’’ at the this Act. end of both subparagraphs (A) and (C), by 501 (relating to exemption from tax on cor- striking the period at the end of subpara- Subtitle D—Mortgage Revenue Bonds porations, certain trusts, etc.) is amended by graph (D) and inserting ‘‘, or’’, and by insert- adding at the end the following new para- ing after subparagraph (D) the following new SEC. 231. INCREASE IN PURCHASE PRICE LIMITA- graph: subparagraph: TION UNDER MORTGAGE SUBSIDY ‘‘(28)(A) Any association created before BOND RULES BASED ON MEDIAN January 1, 1999, by State law and organized ‘‘(E) in the case of an individual, the in- FAMILY INCOME. debtedness discharged is qualified residential and operated exclusively to provide property indebtedness.’’. (a) IN GENERAL.—Paragraph (1) of section and casualty insurance coverage for property (b) QUALIFIED RESIDENTIAL INDEBTEDNESS 143(e) (relating to purchase price require- located within the State for which the State SHORTFALL.—Section 108 (relating to dis- ment) is amended to read as follows: has determined that coverage in the author- charge of indebtedness) is amended by add- ‘‘(1) IN GENERAL.—An issue meets the re- ized insurance market is limited or unavail- ing at the end the following new subsection: quirements of this subsection only if the ac- able at reasonable rates, if— ‘‘(h) QUALIFIED RESIDENTIAL INDEBTED- quisition cost of each residence the owner-fi- ‘‘(i) no part of the net earnings of which in- NESS.— nancing of which is provided under the issue ures to the benefit of any private share- ‘‘(1) LIMITATIONS.—The amount excluded does not exceed the greater of— holder or individual, under subparagraph (E) of subsection (a)(1) ‘‘(A) 90 percent of the average area pur- ‘‘(ii) except as provided in clause (v), no with respect to any qualified residential in- chase price applicable to the residence, or part of the assets of which may be used for, debtedness shall not exceed the excess (if ‘‘(B) 3.5 times the applicable median family or diverted to, any purpose other than— any) of— income (as defined in subsection (f)(4)).’’. ‘‘(I) to satisfy, in whole or in part, the li- ‘‘(A) the outstanding principal amount of ability of the association for, or with respect such indebtedness (immediately before the (b) EFFECTIVE DATE.—The amendment to, claims made on policies written by the discharge), over made by this section shall apply to obliga- association, ‘‘(B) the sum of— tions issued after the date of the enactment ‘‘(II) to invest in investments authorized ‘‘(i) the amount realized from the sale of of this Act. by applicable law, the real property securing such indebtedness reduced by the cost of such sale, and S9718 CONGRESSIONAL RECORD — SENATE October 3, 2000 ‘‘(III) to pay reasonable and necessary ad- ‘‘(A) an amount equal to $75 multiplied by ‘‘(1) the current generation broadband ministration expenses in connection with the the State population, or credit, plus establishment and operation of the associa- ‘‘(B) $225,000.000. ‘‘(2) the next generation broadband credit. tion and the processing of claims against the ‘‘(2) COST-OF-LIVING ADJUSTMENT.—In the ‘‘(b) CURRENT GENERATION BROADBAND association, or case of a calendar year after 2001, each of the CREDIT; NEXT GENERATION BROADBAND CRED- ‘‘(IV) to make remittances pursuant to dollar amounts contained in paragraph (1) State law to be used by the State to provide shall be increased by an amount equal to— IT.—For purposes of this section— for the payment of claims on policies written ‘‘(A) such dollar amount, multiplied by ‘‘(1) CURRENT GENERATION BROADBAND CRED- by the association, purchase reinsurance ‘‘(B) the cost-of-living adjustment deter- IT.—The current generation broadband credit covering losses under such policies, or to mined under section 1(f)(3) for such calendar for any taxable year is equal to 10 percent of support governmental programs to prepare year by substituting ‘calendar year 2000’ for the qualified expenditures incurred with re- for or mitigate the effects of natural cata- ‘calendar year 1992’ in subparagraph (B) spect to qualified equipment offering current strophic events, thereof. generation broadband services to rural sub- scribers or underserved subscribers and ‘‘(iii) the State law governing the associa- If any increase determined under the pre- taken into account with respect to such tax- tion permits the association to levy assess- ceding sentence is not a multiple of $5 ($5,000 ments on insurance companies authorized to able year. in the case of the dollar amount in para- sell property and casualty insurance in the ‘‘(2) NEXT GENERATION BROADBAND CREDIT.— graph (1)(B)), such increase shall be rounded State, or on property and casualty insurance The next generation broadband credit for to the nearest multiple thereof.’’. policyholders with insurable interests in any taxable year is equal to 20 percent of the (b) EFFECTIVE DATE.—The amendment property located in the State to fund deficits made by this section shall apply to calendar qualified expenditures incurred with respect of the association, including the creation of years after 2000. to qualified equipment offering next genera- reserves, tion broadband services to all rural sub- ‘‘(iv) the plan of operation of the associa- SEC. 302. MODIFICATIONS TO EXPENSING OF EN- VIRONMENTAL REMEDIATION scribers, all underserved subscribers, or any tion is subject to approval by the chief exec- COSTS. other residential subscribers and taken into utive officer or other official of the State, by (a) EXPENSING NOT LIMITED TO SITES IN account with respect to such taxable year. the State legislature, or both, and TARGETED AREAS.—Subsection (c) of section ‘‘(v) the assets of the association revert ‘‘(c) WHEN EXPENDITURES TAKEN INTO AC- 198 is amended to read as follows: upon dissolution to the State, the State’s COUNT.—For purposes of this section— ‘‘(c) QUALIFIED CONTAMINATED SITE.—For ‘‘(1) IN GENERAL.—Qualified expenditures designee, or an entity designated by the purposes of this section— State law governing the association, or with respect to qualified equipment shall be ‘‘(1) IN GENERAL.—The term ‘qualified con- taken into account with respect to the first State law does not permit the dissolution of taminated site’ means any area— the association. taxable year in which current generation ‘‘(A) which is held by the taxpayer for use broadband services or next generation ‘‘(B)(i) An entity described in clause (ii) in a trade or business or for the production shall be disregarded as a separate entity and broadband services are offered by the tax- of income, or which is property described in payer through such equipment to sub- treated as part of the association described section 1221(a)(1) in the hands of the tax- in subparagraph (A) from which it receives scribers. payer, and ‘‘(2) OFFER OF SERVICES.—For purposes of remittances described in clause (ii) if an ‘‘(B) at or on which there has been a re- election is made within 30 days after the paragraph (1), the offer of current generation lease (or threat of release) or disposal of any broadband services or next generation date that such association is determined to hazardous substance. be exempt from tax. broadband services through qualified equip- ‘‘(2) NATIONAL PRIORITIES LISTED SITES NOT ‘‘(ii) An entity is described in this clause if ment occurs when such class of service is INCLUDED.—Such term shall not include any it is an entity or fund created before Janu- purchased by and provided to at least 10 per- site which is on, or proposed for, the na- cent of the subscribers described in sub- ary 1, 1999, pursuant to State law and orga- tional priorities list under section nized and operated exclusively to receive, section (b) which such equipment is capable 105(a)(8)(B) of the Comprehensive Environ- of serving through the legal or contractual hold, and invest remittances from an asso- mental Response, Compensation, and Liabil- ciation described in subparagraph (A) and ex- area access rights or obligations of the tax- ity Act of 1980 (as in effect on the date of the payer. empt from tax under subsection (a), to make enactment of this section). disbursements to pay claims on insurance ‘‘(3) TAXPAYER MUST RECEIVE STATEMENT ‘‘(d) SPECIAL ALLOCATION RULES.— contracts issued by such association, and to FROM STATE ENVIRONMENTAL AGENCY.—An ‘‘(1) CURRENT GENERATION BROADBAND SERV- make disbursements to support govern- area shall be treated as a qualified contami- ICES.—For purposes of determining the cur- mental programs to prepare for or mitigate nated site with respect to expenditures paid rent generation broadband credit under sub- the effects of natural catastrophic events.’’. or incurred during any taxable year only if section (a)(1), if the qualified equipment is (b) UNRELATED BUSINESS TAXABLE IN- the taxpayer receives a statement from the capable of serving both the subscribers de- COME.—Subsection (a) of section 512 (relating scribed under subsection (b)(1) and other sub- to unrelated business taxable income) is appropriate agency of the State in which such area is located that such area meets the scribers, the qualified expenditures shall be amended by adding at the end the following multiplied by a fraction— new paragraph: requirement of paragraph (1)(B). ‘‘(4) APPROPRIATE STATE AGENCY.—For pur- ‘‘(A) the numerator of which is the sum of ‘‘(6) SPECIAL RULE APPLICABLE TO ORGANIZA- poses of paragraph (3), the chief executive of- the total potential subscriber populations TIONS DESCRIBED IN SECTION 501(c)(28).—In the ficer of each State may, in consultation with within the rural areas and the underserved case of an organization described in section areas which the equipment is capable of serv- 501(c)(28), the term ‘unrelated business tax- the Administrator of the Environmental Protection Agency, designate the appro- ing, and able income’ means taxable income for a tax- ‘‘(B) the denominator of which is the total able year computed without the application priate State environmental agency within 60 days of the date of the enactment of this sec- potential subscriber population of the area of section 501(c)(28) if at the end of the imme- which the equipment is capable of serving. diately preceding taxable year the organiza- tion. If the chief executive officer of a State has not designated an appropriate environ- ‘‘(2) NEXT GENERATION BROADBAND SERV- tion’s net equity exceeded 15 percent of the ICES.—For purposes of determining the next total coverage in force under insurance con- mental agency within such 60-day period, the appropriate environmental agency for such generation broadband credit under sub- tracts issued by the organization and out- section (a)(2), if the qualified equipment is standing at the end of such preceding year.’’. State shall be designated by the Adminis- trator of the Environmental Protection capable of serving both the subscribers de- (c) TRANSITIONAL RULE.—No income or scribed under subsection (b)(2) and other sub- gain shall be recognized by an association as Agency.’’. (b) EXTENSION OF TERMINATION DATE.—Sub- scribers, the qualified expenditures shall be a result of a change in status to that of an multiplied by a fraction— association described by section 501(c)(28) of section (h) of section 198 is amended by ‘‘(A) the numerator of which is the sum the Internal Revenue Code of 1986, as amend- striking ‘‘2001’’ and inserting ‘‘2003’’. of— ed by subsection (a). (c) EFFECTIVE DATE.—The amendments ‘‘(i) the total potential subscriber popu- (d) EFFECTIVE DATE.—The amendment made by this section shall apply to expendi- made by subsection (a) shall apply to taxable tures paid or incurred after the date of the lations within the rural areas and under- years beginning after December 31, 2000. enactment of this Act. served areas, plus ‘‘(ii) the total potential subscriber popu- TITLE III—TAX INCENTIVES FOR URBAN SEC. 303. BROADBAND INTERNET ACCESS TAX lation of the area consisting only of residen- AND RURAL INFRASTRUCTURE CREDIT. tial subscribers not described in clause (i), SEC. 301. INCREASE IN STATE CEILING ON PRI- (a) IN GENERAL.—Subpart E of part IV of chapter 1 (relating to rules for computing in- which the equipment is capable of serving, VATE ACTIVITY BONDS. and (a) IN GENERAL.—Paragraphs (1) and (2) of vestment credit) is amended by inserting ‘‘(B) the denominator of which is the total section 146(d) (relating to State ceiling) are after section 48 the following new section: potential subscriber population of the area amended to read as follows: ‘‘SEC. 48A. BROADBAND CREDIT. which the equipment is capable of serving. ‘‘(1) IN GENERAL.—The State ceiling appli- ‘‘(a) GENERAL RULE.—For purposes of sec- cable to any State for any calendar year tion 46, the broadband credit for any taxable ‘‘(e) DEFINITIONS.—For purposes of this shall be the greater of— year is the sum of— section— October 3, 2000 CONGRESSIONAL RECORD — SENATE S9719

‘‘(1) ANTENNA.—The term ‘antenna’ means tion, shall be taken into account under sub- tial subscribers maintaining permanent any device used to transmit or receive sig- paragraph (A) only if it is deployed in con- places of business located in such area. nals through the electromagnetic spectrum, nection with equipment described in sub- ‘‘(18) UNDERSERVED SUBSCRIBER.— including satellite equipment. paragraph (B) and it is uniquely designed to ‘‘(A) IN GENERAL.—The term ‘underserved ‘‘(2) CABLE OPERATOR.—The term ‘cable op- perform the function of packet switching for subscriber’ means a residential subscriber re- erator’ has the meaning given such term by current generation broadband services or siding in a dwelling located in an under- section 602(5) of the Communications Act of next generation broadband services, but only served area or nonresidential subscriber 1934 (47 U.S.C. 522(5)). if such packet switching is the last in a se- maintaining a permanent place of business ‘‘(3) COMMERCIAL MOBILE SERVICE CAR- ries of such functions performed in the trans- located in an underserved area. RIER.—The term ‘commercial mobile service mission of a signal to a subscriber or the ‘‘(B) UNDERSERVED AREA.—The term ‘un- carrier’ means any person authorized to pro- first in a series of such functions performed derserved area’ means any census tract— vide commercial mobile radio service as de- in the transmission of a signal from a sub- ‘‘(i) the poverty level of which is at least 30 fined in section 20.3 of title 47, Code of Fed- scriber. percent (based on the most recent census eral Regulations. ‘‘(11) QUALIFIED EXPENDITURE.— data), ‘‘(4) CURRENT GENERATION BROADBAND SERV- ‘‘(A) IN GENERAL.—The term ‘qualified ex- ‘‘(ii) the median family income of which ICE.—The term ‘current generation penditure’ means any amount— does not exceed— broadband service’ means the transmission ‘‘(i) chargeable to capital account with re- ‘‘(I) in the case of a census tract located in of signals at a rate of at least 1,500,000 bits spect to the purchase and installation of a metropolitan statistical area, 70 percent of per second to the subscriber and at least qualified equipment (including any upgrades the greater of the metropolitan area median 200,000 bits per second from the subscriber. thereto) for which depreciation is allowable family income or the statewide median fam- ‘‘(5) NEXT GENERATION BROADBAND SERV- under section 168, and ily income, and ICE.—The term ‘next generation broadband ‘‘(ii) incurred— ‘‘(II) in the case of a census tract located service’ means the transmission of signals at ‘‘(I) with respect to the provision of cur- in a nonmetropolitan statistical area, 70 per- a rate of at least 22,000,000 bits per second to rent generation broadband service, after De- cent of the nonmetropolitan statewide me- the subscriber and at least 10,000,000 bits per cember 31, 2000, and before January 1, 2004, dian family income, or second from the subscriber. and ‘‘(iii) which is located in an empowerment ‘‘(6) NONRESIDENTIAL SUBSCRIBER.—The ‘‘(II) with respect to the provision of next zone or enterprise community designated term ‘nonresidential subscriber’ means a per- generation broadband service, after Decem- under section 1391. son or entity who purchases broadband serv- ber 31, 2001, and before January 1, 2005. ‘‘(f) DESIGNATION OF CENSUS TRACTS.—The ices which are delivered to the permanent ‘‘(B) CERTAIN SATELLITE EXPENDITURES EX- Secretary shall, not later than 90 days after place of business of such person or entity. CLUDED.—Such term shall not include any the date of the enactment of this section, ‘‘(7) OPEN VIDEO SYSTEM OPERATOR.—The expenditure with respect to the launching of designate and publish those census tracts term ‘open video system operator’ means any satellite equipment. meeting the criteria described in paragraphs any person authorized to provide service ‘‘(12) RESIDENTIAL SUBSCRIBER.—The term (13)(B) and (18)(B) of subsection (e), and such under section 653 of the Communications Act ‘residential subscriber’ means an individual tracts shall remain so designated for the pe- of 1934 (47 U.S.C. 573). who purchases broadband services which are riod ending with the applicable termination ‘‘(8) OTHER WIRELESS CARRIER.—The term delivered to such individual’s dwelling. date described in subsection (e)(11)(A)(ii).’’. ‘other wireless carrier’ means any person ‘‘(13) RURAL SUBSCRIBER.— (b) CREDIT TO BE PART OF INVESTMENT (other than a telecommunications carrier, ‘‘(A) IN GENERAL.—The term ‘rural sub- CREDIT.—Section 46 (relating to the amount commercial mobile service carrier, cable op- scriber’ means a residential subscriber resid- of investment credit) is amended by striking erator, open video system operator, or sat- ing in a dwelling located in a rural area or ‘‘and’’ at the end of paragraph (2), by strik- ellite carrier) providing current generation nonresidential subscriber maintaining a per- ing the period at the end of paragraph (3) and broadband services or next generation manent place of business located in a rural inserting ‘‘, and’’, and by adding at the end broadband service to subscribers through the area. the following new paragraph: radio transmission of energy. ‘‘(B) RURAL AREA.—The term ‘rural area’ ‘‘(4) the broadband credit.’’. ‘‘(9) PACKET SWITCHING.—The term ‘packet means any census tract which— (c) SPECIAL RULE FOR MUTUAL OR COOPERA- switching’ means controlling or routing the ‘‘(i) is not within 10 miles of any incor- TIVE TELEPHONE COMPANIES.—Section path of a digitized transmission signal which porated or census designated place con- 501(c)(12)(B) (relating to list of exempt orga- is assembled into packets or cells. taining more than 25,000 people, and nizations) is amended by striking ‘‘or’’ at the ‘‘(10) QUALIFIED EQUIPMENT.— ‘‘(ii) is not within a county or county end of clause (iii), by striking the period at ‘‘(A) IN GENERAL.—The term ‘qualified equivalent which has an overall population the end of clause (iv) and inserting ‘‘, or’’, equipment’ means equipment capable of pro- density of more than 500 people per square and by adding at the end the following new viding current generation broadband services mile of land. clause: or next generation broadband services at any ‘‘(14) SATELLITE CARRIER.—The term ‘sat- ‘‘(v) from sources not described in subpara- time to each subscriber who is utilizing such ellite carrier’ means any person using the fa- graph (A), but only to the extent such in- services. cilities of a satellite or satellite service li- come does not in any year exceed an amount ‘‘(B) ONLY CERTAIN INVESTMENT TAKEN INTO censed by the Federal Communications Com- equal to the credit for qualified expenditures ACCOUNT.—Except as provided in subpara- mission and operating in the Fixed-Satellite which would be determined under section graph (C), equipment shall be taken into ac- Service under part 25 of title 47 of the Code 48A for such year if the mutual or coopera- count under subparagraph (A) only to the ex- of Federal Regulations or the Direct Broad- tive telephone company was not exempt tent it— cast Satellite Service under part 100 of title from taxation.’’. ‘‘(i) extends from the last point of switch- 47 of such Code to establish and operate a (d) CONFORMING AMENDMENT.—The table of ing to the outside of the unit, building, channel of communications for point-to- sections for subpart E of part IV of sub- dwelling, or office owned or leased by a sub- multipoint distribution of signals, and own- chapter A of chapter 1 is amended by insert- scriber in the case of a telecommunications ing or leasing a capacity or service on a sat- ing after the item relating to section 48 the carrier, ellite in order to provide such point-to- following new item: ‘‘(ii) extends from the customer side of the multipoint distribution. ‘‘Sec. 48A. Broadband credit.’’. mobile telephone switching office to a trans- ‘‘(15) SUBSCRIBER.—The term ‘subscriber’ (e) REGULATORY MATTERS.—No Federal or mission/receive antenna (including such an- means a person who purchases current gen- State agency or instrumentality shall adopt tenna) owned or leased by a subscriber in the eration broadband services or next genera- regulations or ratemaking procedures that case of a commercial mobile service carrier, tion broadband services. would have the effect of confiscating any ‘‘(iii) extends from the customer side of the ‘‘(16) TELECOMMUNICATIONS CARRIER.—The credit or portion thereof allowed under sec- headend to the outside of the unit, building, term ‘telecommunications carrier’ has the tion 48A of the Internal Revenue Code of 1986 dwelling, or office owned or leased by a sub- meaning given such term by section 3(44) of (as added by this section) or otherwise sub- scriber in the case of a cable operator or the Communications Act of 1934 (47 U.S.C. verting the purpose of this section. open video system operator, or 153 (44)), but— (f) STUDY AND REPORT.— ‘‘(iv) extends from a transmission/receive ‘‘(A) includes all members of an affiliated (1) SENSE OF CONGRESS.—It is the sense of antenna (including such antenna) which group of which a telecommunications carrier Congress that in order to maintain competi- transmits and receives signals to or from is a member, and tive neutrality, the credit allowed under sec- multiple subscribers to a transmission/re- ‘‘(B) does not include a commercial mobile tion 48A of the Internal Revenue Code of 1986 ceive antenna (including such antenna) on service carrier. (as added by this section) should be adminis- the outside of the unit, building, dwelling, or ‘‘(17) TOTAL POTENTIAL SUBSCRIBER POPU- tered in such a manner so as to ensure that office owned or leased by a subscriber in the LATION.—The term ‘total potential sub- each class of provider receives the same level case of a satellite carrier or other wireless scriber population’ means, with respect to of financial incentive to deploy current gen- carrier, unless such other wireless carrier is any area and based on the most recent cen- eration broadband services and next genera- also a telecommunications carrier. sus data, the total number of potential resi- tion broadband services. ‘‘(C) PACKET SWITCHING EQUIPMENT.—Pack- dential subscribers residing in dwellings lo- (2) STUDY AND REPORT.—The Secretary of et switching equipment, regardless of loca- cated in such area and potential nonresiden- the Treasury shall, within 180 days after the S9720 CONGRESSIONAL RECORD — SENATE October 3, 2000

effective date of this section, study the im- ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the ignated under section 104(d)(2) of title 23, pact of the credit allowed under section 48A credit allowable under subsection (a) exceeds United States Code, and of the Internal Revenue Code of 1986 (as the limitation imposed by paragraph (1) for ‘‘(C) the acquisition, financing, or refi- added by this section) on the relative com- such taxable year, such excess shall be car- nancing (as so described) of equipment, roll- petitiveness of potential classes of providers ried to the succeeding taxable year and ing stock, and other capital improvements of current generation broadband services and added to the credit allowable under sub- for other intercity passenger rail corridors, next generation broadband services, and section (a) for such taxable year. including station rehabilitation or construc- shall report to Congress the findings of such ‘‘(d) QUALIFIED AMTRAK BOND.—For pur- tion, track or signal improvements, or the study, together with any legislative or regu- poses of this part— elimination of grade crossings. latory proposals determined to be necessary ‘‘(1) IN GENERAL.—The term ‘qualified Am- ‘‘(e) LIMITATIONS ON AMOUNT OF BONDS DES- to ensure that the purposes of such credit trak bond’ means any bond issued as part of IGNATED.— can be furthered without impacting competi- an issue if— ‘‘(1) IN GENERAL.—There is a qualified Am- tive neutrality among such classes of pro- ‘‘(A) 95 percent or more of the proceeds of trak bond limitation for each fiscal year. viders. such issue are— Such limitation is— (g) EFFECTIVE DATES.— ‘‘(i) to be used for any qualified project, or ‘‘(A) $1,000,000,000 for each of the fiscal (1) IN GENERAL.—Except as provided in ‘‘(ii) to be pledged to secure payments and paragraph (2), the amendments made by this other obligations incurred by the National years 2001 through 2010, and section shall apply to expenditures incurred Railroad Passenger Corporation in connec- ‘‘(B) except as provided in paragraph (5), after December 31, 2000. tion with any qualified project, zero after fiscal year 2010. (2) SPECIAL RULE.—The amendments made ‘‘(B) the bond is issued by the National ‘‘(2) BONDS FOR RAIL CORRIDORS.— by subsection (c) shall apply to amounts re- Railroad Passenger Corporation, ‘‘(A) IN GENERAL.—Not more than ceived after December 31, 2000. ‘‘(C) the issuer— $3,000,000,000 of the limitation under para- SEC. 304. CREDIT TO HOLDERS OF QUALIFIED ‘‘(i) designates such bond for purposes of graph (1) may be designated for any 1 rail AMTRAK BONDS. this section, corridor described in subparagraph (A) or (B) (a) IN GENERAL.—Part IV of subchapter A ‘‘(ii) certifies that it meets the State con- of subsection (d)(3). of chapter 1 (relating to credits against tax) tribution requirement of paragraph (2) with ‘‘(B) SPECIFIC QUALIFIED PROJECT ALLOCA- is amended by adding at the end the fol- respect to such project, and TION.—Of the amount described in subpara- lowing new subpart: ‘‘(iii) certifies that it has obtained the graph (A), the Secretary of Transportation ‘‘Subpart H—Nonrefundable Credit for written approval of the Secretary of Trans- shall allocate $92,000,000 for the acquisition Holders of Qualified Amtrak Bonds portation for such project, and installation of platform facilities, per- ‘‘Sec. 54. Credit to holders of qualified Am- ‘‘(D) the term of each bond which is part of formance of railroad force account work nec- trak bonds. such issue does not exceed 20 years, and essary to complete improvements below street grade, and any other necessary im- ‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED ‘‘(E) the payment of principal with respect AMTRAK BONDS. to such bond is guaranteed by the National provements related to construction at the ‘‘(a) ALLOWANCE OF CREDIT.—In the case of Railroad Passenger Corporation. railroad station at the James A. Farley Post a taxpayer who holds a qualified Amtrak ‘‘(2) STATE CONTRIBUTION REQUIREMENT.— Office Building in New York City, New York. bond on a credit allowance date of such bond ‘‘(A) IN GENERAL.—For purposes of para- ‘‘(3) BONDS FOR OTHER PROJECTS.—Not more which occurs during the taxable year, there graph (1)(C)(ii), the State contribution re- than 10 percent of the limitation under para- shall be allowed as a credit against the tax quirement of this paragraph is met with re- graph (1) for any fiscal year may be allocated imposed by this chapter for such taxable spect to any qualified project if the National to qualified projects described in subsection year an amount equal to the sum of the cred- Railroad Passenger Corporation has a writ- (d)(3)(C). its determined under subsection (b) with re- ten binding commitment from 1 or more ‘‘(4) BONDS FOR ALASKA RAILROAD.—The spect to credit allowance dates during such States to make matching contributions not Secretary of Transportation may allocate to year on which the taxpayer holds such bond. later than the date of issuance of the issue of the Alaska Railroad a portion of the quali- ‘‘(b) AMOUNT OF CREDIT.— not less than 20 percent of the cost of the fied Amtrak limitation for any fiscal year in ‘‘(1) IN GENERAL.—The amount of the credit qualified project. order to allow the Alaska Railroad to issue determined under this subsection with re- ‘‘(B) USE OF STATE MATCHING CONTRIBU- bonds which meet the requirements of this spect to any credit allowance date for a TIONS.—The matching contributions de- section for use in financing any project de- qualified Amtrak bond is 25 percent of the scribed in subparagraph (A) with respect to scribed in subsection (d)(3)(C). For purposes annual credit determined with respect to each qualified project shall be used— of this section, the Alaska Railroad shall be such bond. ‘‘(i) in the case of an amount not to exceed treated in the same manner as the National ‘‘(2) ANNUAL CREDIT.—The annual credit de- 20 percent of the cost of such project, to re- Passenger Railroad Corporation. termined with respect to any qualified Am- deem bonds which are a part of the issue ‘‘(5) CARRYOVER OF UNUSED LIMITATION.—If trak bond is the product of— with respect to such project, and for any fiscal year— ‘‘(A) the applicable credit rate, multiplied ‘‘(ii) in the case of any remaining amount, ‘‘(A) the limitation amount under para- by at the election of the National Railroad Pas- graph (1), exceeds ‘‘(B) the outstanding face amount of the senger Corporation and the contributing ‘‘(B) the amount of bonds issued during bond. State— such year which are designated under sub- ‘‘(3) APPLICABLE CREDIT RATE.—For pur- ‘‘(I) to fund the qualified project, section (d)(1)(C)(i), poses of paragraph (2), the applicable credit ‘‘(II) to redeem such bonds, or the limitation amount under paragraph (1) rate with respect to an issue is the rate ‘‘(III) for the purposes of subclauses (I) and for the following fiscal year (through fiscal equal to an average market yield (as of the (II). year 2014) shall be increased by the amount day before the date of issuance of the issue) ‘‘(C) STATE MATCHING CONTRIBUTIONS MAY of such excess. on outstanding long-term corporate debt ob- NOT INCLUDE FEDERAL FUNDS.—For purposes ‘‘(6) PREFERENCE FOR GREATER STATE PAR- ligations (determined under regulations pre- of this paragraph, State matching contribu- TICIPATION.—In selecting qualified projects scribed by the Secretary). tions shall not be derived, directly or indi- for allocation of the qualified Amtrak bond ‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE- rectly, from Federal funds, including any limitation under this subsection, the Sec- DEMPTION.—In the case of a bond which is transfers from the Highway Trust Fund retary of Transportation shall give pref- issued during the 3-month period ending on a under section 9503. erence to any project with a State matching credit allowance date, the amount of the ‘‘(D) NO STATE CONTRIBUTION REQUIREMENT contribution rate exceeding 20 percent. credit determined under this subsection with FOR CERTAIN QUALIFIED PROJECT.—With re- ‘‘(f) OTHER DEFINITIONS.—For purposes of respect to such credit allowance date shall spect to the qualified project described in this subpart— be a ratable portion of the credit otherwise subsection (e)(2)(B), the State contribution ‘‘(1) BOND.—The term ‘bond’ includes any determined based on the portion of the 3- requirement of this paragraph is zero. obligation. month period during which the bond is out- ‘‘(3) QUALIFIED PROJECT.—The term ‘quali- ‘‘(2) CREDIT ALLOWANCE DATE.—The term standing. A similar rule shall apply when the fied project’ means— ‘credit allowance date’ means— bond is redeemed. ‘‘(A) the acquisition, financing, or refi- ‘‘(c) LIMITATION BASED ON AMOUNT OF nancing (as described in paragraph (1)(A)(ii)) ‘‘(A) March 15, TAX.— of equipment, rolling stock, and other cap- ‘‘(B) June 15, ‘‘(1) IN GENERAL.—The credit allowed under ital improvements for the northeast rail cor- ‘‘(C) September 15, and subsection (a) for any taxable year shall not ridor between Washington, D.C. and Boston, ‘‘(D) December 15. exceed the excess of— Massachusetts (including the project de- Such term includes the last day on which the ‘‘(A) the sum of the regular tax liability scribed in subsection (e)(2)(B)), bond is outstanding. (as defined in section 26(b)) plus the tax im- ‘‘(B) the acquisition, financing, or refi- ‘‘(3) STATE.—The term ‘State’ includes the posed by section 55, over nancing (as so described) of equipment, roll- District of Columbia. ‘‘(B) the sum of the credits allowable under ing stock, and other capital improvements ‘‘(g) CREDIT INCLUDED IN GROSS INCOME.— this part (other than this subpart and sub- for the improvement of train speeds or safety Gross income includes the amount of the part C). (or both) on the high-speed rail corridors des- credit allowed to the taxpayer under this October 3, 2000 CONGRESSIONAL RECORD — SENATE S9721 section (determined without regard to sub- the qualified Amtrak bond as if it were a trak bonds issued pursuant to section 54 of section (c)) and the amount so included shall stripped bond and to the credit under this such Code (as so added). be treated as interest income. section as if it were a stripped coupon. (B) PROJECT OVERSIGHT.—The National ‘‘(h) SPECIAL RULES RELATING TO ARBI- ‘‘(4) TREATMENT FOR ESTIMATED TAX PUR- Railroad Passenger Corporation shall con- TRAGE.— POSES.—Solely for purposes of sections 6654 tract for an annual independent assessment ‘‘(1) IN GENERAL.—A bond shall not be and 6655, the credit allowed by this section of the costs and benefits of the qualified treated as failing to meet the requirements to a taxpayer by reason of holding a quali- projects financed by such qualified Amtrak of subsection (d)(1) solely by reason of the fied Amtrak bond on a credit allowance date bonds, including an assessment of the invest- fact that proceeds of the issue of which such shall be treated as if it were a payment of es- ment evaluation process of the Corporation. bond is a part are invested for a temporary timated tax made by the taxpayer on such The annual assessment shall be included in period (but not more than 36 months) until date. the plan submitted under paragraph (1). such proceeds are needed for the purpose for ‘‘(5) CREDIT MAY BE TRANSFERRED.—Noth- (f) PROTECTION OF HIGHWAY TRUST FUND.— which such issue was issued. ing in any law or rule of law shall be con- (1) CERTIFICATION BY THE SECRETARY OF THE ‘‘(2) REASONABLE EXPECTATION AND BINDING strued to limit the transferability of the TREASURY.—The issuance of any qualified COMMITMENT REQUIREMENTS.—Paragraph (1) credit allowed by this section through sale Amtrak bonds by the National Passenger shall apply to an issue only if, as of the date and repurchase agreements. Railroad Corporation pursuant to section 54 of issuance, the issuer reasonably expects— ‘‘(6) REPORTING.—Issuers of qualified Am- of the Internal Revenue Code of 1986 (as ‘‘(A) that at least 95 percent of the pro- trak bonds shall submit reports similar to added by this section) is conditioned on cer- ceeds of the issue will be spent for 1 or more the reports required under section 149(e).’’. tification by the Secretary of the Treasury, qualified projects within the 3-year period (b) REPORTING.—Subsection (d) of section after consultation with the Secretary of beginning on such date, 6049 (relating to returns regarding payments Transportation, within 30 days of a request ‘‘(B) to incur a binding commitment with a of interest) is amended by adding at the end by the issuer, that with respect to funds of third party to spend at least 10 percent of the the following new paragraph: the Highway Trust Fund described under proceeds of the issue, or to commence pre- ‘‘(8) REPORTING OF CREDIT ON QUALIFIED AM- paragraph (2), the issuer either— liminary engineering or construction, with TRAK BONDS.— (A) has not received such funds during fis- respect to such projects within the 6-month ‘‘(A) IN GENERAL.—For purposes of sub- cal years commencing with fiscal year 2001 period beginning on such date, and section (a), the term ‘interest’ includes and ending before the fiscal year the bonds ‘‘(C) that the remaining proceeds of the amounts includible in gross income under are issued, or issue will be spent with due diligence with section 54(g) and such amounts shall be (B) has repaid to the Highway Trust Fund respect to such projects. treated as paid on the credit allowance date any such funds which were received during ‘‘(3) EARNINGS ON PROCEEDS.—Any earnings such fiscal years. on proceeds during the temporary period (as defined in section 54(f)(2)). (2) APPLICABILITY.—This subsection shall shall be treated as proceeds of the issue for ‘‘(B) REPORTING TO CORPORATIONS, ETC.— Except as otherwise provided in regulations, apply to funds received directly or indirectly purposes of applying subsection (d)(1) and from the Highway Trust Fund established paragraph (1) of this subsection. in the case of any interest described in sub- under section 9503 of the Internal Revenue ‘‘(i) USE OF TRUST ACCOUNT.— paragraph (A) of this paragraph, subsection Code of 1986, except for funds authorized to ‘‘(1) IN GENERAL.—The amount of any (b)(4) of this section shall be applied without be expended under section 9503(c) of such matching contribution with respect to a regard to subparagraphs (A), (H), (I), (J), (K), Code, as in effect on the date of the enact- qualified project described in subsection and (L)(i). ment of this Act. (d)(2)(B)(i) or (d)(2)(B)(ii)(II) and the tem- ‘‘(C) REGULATORY AUTHORITY.—The Sec- (3) NO RETROACTIVE EFFECT.—Nothing in porary period investment earnings on pro- retary may prescribe such regulations as are this subsection shall adversely affect the en- ceeds of the issue with respect to such necessary or appropriate to carry out the titlement of the holders of qualified Amtrak project described in subsection (h)(1), and purposes of this paragraph, including regula- bonds to the tax credit allowed pursuant to any earnings thereon, shall be held in a trust tions which require more frequent or more section 54 of the Internal Revenue Code of account by a trustee independent of the Na- detailed reporting.’’. 1986 (as so added) or to repayment of prin- tional Railroad Passenger Corporation to be (c) CLERICAL AMENDMENTS.— cipal upon maturity. used to redeem bonds which are part of such (1) The table of subparts for part IV of sub- issue. chapter A of chapter 1 is amended by adding SEC. 305. CLARIFICATION OF CONTRIBUTION IN AID OF CONSTRUCTION. ‘‘(2) USE OF REMAINING FUNDS IN TRUST AC- at the end the following new item: (a) IN GENERAL.—Subparagraph (A) of sec- COUNT.—Upon the repayment of the principal ‘‘Subpart H. Nonrefundable Credit for Hold- tion 118(c)(3) (relating to definitions) is of all qualified Amtrak bonds issued under ers of Qualified Amtrak amended to read as follows: this section, any remaining funds in the Bonds.’’. ‘‘(A) CONTRIBUTION IN AID OF CONSTRUC- trust account described in paragraph (1) TION.—The term ‘contribution in aid of con- shall be available to the trustee described in (2) Section 6401(b)(1) is amended by strik- struction’ shall be defined by regulations paragraph (1) to meet any remaining obliga- ing ‘‘and G’’ and inserting ‘‘G, and H’’. prescribed by the Secretary, except that tions under any guaranteed investment con- (d) EFFECTIVE DATE.—The amendments such term— tract used to secure earnings sufficient to made by this section shall apply to obliga- ‘‘(i) shall include amounts paid as cus- repay the principal of such bonds. tions issued after September 30, 2000. tomer connection fees (including amounts ‘‘(j) OTHER SPECIAL RULES.— (e) MULTI-YEAR CAPITAL SPENDING PLAN paid to connect the customer’s line to or ex- ‘‘(1) PARTNERSHIP; S CORPORATION; AND AND OVERSIGHT.— tend a main water or sewer line), and OTHER PASS-THRU ENTITIES.—Under regula- (1) AMTRAK CAPITAL SPENDING PLAN.— ‘‘(ii) shall not include amounts paid as tions prescribed by the Secretary, in the case (A) IN GENERAL.—The National Railroad service charges for starting or stopping serv- of a partnership, trust, S corporation, or Passenger Corporation shall annually submit ices.’’. other pass-thru entity, rules similar to the to the President and Congress a multi-year (b) EFFECTIVE DATE.—The amendment capital spending plan, as approved by the rules of section 41(g) shall apply with respect made by subsection (a) shall apply to to the credit allowable under subsection (a). Board of Directors of the Corporation. amounts received after the date of the enact- ‘‘(2) BONDS HELD BY REGULATED INVESTMENT (B) CONTENTS OF PLAN.—Such plan shall ment of this Act. COMPANIES.—If any qualified Amtrak bond is identify the capital investment needs of the SEC. 306. RECOVERY PERIOD FOR DEPRECIATION held by a regulated investment company, the Corporation over a period of not less than 5 OF CERTAIN LEASEHOLD IMPROVE- credit determined under subsection (a) shall years and the funding sources available to fi- MENTS. be allowed to shareholders of such company nance such needs and shall prioritize such (a) 15-YEAR RECOVERY PERIOD.—Subpara- under procedures prescribed by the Sec- needs according to corporate goals and strat- graph (E) of section 168(e)(3) (relating to 15- retary. egies. year property) is amended by striking ‘‘and’’ ‘‘(3) CREDITS MAY BE STRIPPED.—Under reg- (C) INITIAL SUBMISSION DATE.—The first at the end of clause (ii), by striking the pe- ulations prescribed by the Secretary— plan shall be submitted before the issuance riod at the end of clause (iii) and inserting ‘‘, ‘‘(A) IN GENERAL.—There may be a separa- of any qualified Amtrak bonds pursuant to and’’, and by adding at the end the following tion (including at issuance) of the ownership section 54 of the Internal Revenue Code of new clause: of a qualified Amtrak bond and the entitle- 1986 (as added by this section). ‘‘(iv) any qualified leasehold improvement ment to the credit under this section with (2) OVERSIGHT OF AMTRAK TRUST ACCOUNT property.’’. respect to such bond. In case of any such sep- AND QUALIFIED PROJECTS.— (b) QUALIFIED LEASEHOLD IMPROVEMENT aration, the credit under this section shall (A) TRUST ACCOUNT OVERSIGHT.—The Sec- PROPERTY.—Subsection (e) of section 168 is be allowed to the person who on the credit retary of the Treasury shall annually report amended by adding at the end the following allowance date holds the instrument evi- to Congress as to whether the amount depos- new paragraph: dencing the entitlement to the credit and ited in the trust account established by the ‘‘(6) QUALIFIED LEASEHOLD IMPROVEMENT not to the holder of the bond. National Passenger Railroad Corporation PROPERTY.— ‘‘(B) CERTAIN RULES TO APPLY.—In the case under section 54(i) of such Code (as so added) ‘‘(A) IN GENERAL.—The term ‘qualified of a separation described in subparagraph is sufficient to fully repay at maturity the leasehold improvement property’ means any (A), the rules of section 1286 shall apply to principal of any outstanding qualified Am- improvement to an interior portion of a S9722 CONGRESSIONAL RECORD — SENATE October 3, 2000

building which is nonresidential real prop- ‘‘(2) DISTRIBUTIONS.—Distributions from a ‘‘(f ) SPECIAL RULES.— erty if— FFARRM Account may not be used to pur- ‘‘(1) TAX ON DEPOSITS IN ACCOUNT WHICH ARE ‘‘(i) such improvement is made under or chase, lease, or finance any new fishing ves- NOT DISTRIBUTED WITHIN 5 YEARS.— pursuant to a lease (as defined in subsection sel, add capacity to any fishery, or otherwise ‘‘(A) IN GENERAL.—If, at the close of any (h)(7))— contribute to the overcapitalization of any taxable year, there is a nonqualified balance ‘‘(I) by the lessee (or any sublessee) of such fishery. The Secretary of Commerce shall in any FFARRM Account— portion, or implement regulations to enforce this para- ‘‘(i) there shall be deemed distributed from ‘‘(II) by the lessor of such portion, graph. such Account during such taxable year an ‘‘(ii) the original use of such improvement ‘‘(c) ELIGIBLE BUSINESSES.—For purposes of amount equal to such balance, and begins with the lessee and after December 31, this section— ‘‘(ii) the taxpayer’s tax imposed by this 2006, ‘‘(1) ELIGIBLE FARMING BUSINESS.—The term chapter for such taxable year shall be in- ‘‘(iii) such portion is to be occupied exclu- ‘eligible farming business’ means any farm- creased by 10 percent of such deemed dis- sively by the lessee (or any sublessee) of such ing business (as defined in section 263A(e)(4)) tribution. which is not a passive activity (within the portion, and The preceding sentence shall not apply if an meaning of section 469(c)) of the taxpayer. ‘‘(iv) such improvement is placed in service amount equal to such nonqualified balance is ‘‘(2) COMMERCIAL FISHING.—The term ‘com- more than 3 years after the date the building distributed from such Account to the tax- mercial fishing’ has the meaning given such was first placed in service. payer before the due date (including exten- ‘‘(B) CERTAIN IMPROVEMENTS NOT IN- term by section (3) of the Magnuson-Stevens Fishery Conservation and Management Act sions) for filing the return of tax imposed by CLUDED.—Such term shall not include any this chapter for such year (or, if earlier, the improvement for which the expenditure is (16 U.S.C. 1802) but only if such fishing is not a passive activity (within the meaning of date the taxpayer files such return for such attributable to— year). ‘‘(i) the enlargement of the building, section 469(c)) of the taxpayer. ‘‘(B) NONQUALIFIED BALANCE.—For purposes ‘‘(ii) any elevator or escalator, ‘‘(d) FFARRM ACCOUNT.—For purposes of this section— of subparagraph (A), the term ‘nonqualified ‘‘(iii) any structural component benefiting balance’ means any balance in the Account a common area, and ‘‘(1) IN GENERAL.—The term ‘FFARRM Ac- count’ means a trust created or organized in on the last day of the taxable year which is ‘‘(iv) the internal structural framework of attributable to amounts deposited in such the building. the United States for the exclusive benefit of the taxpayer, but only if the written gov- Account before the 4th preceding taxable ‘‘(C) DEFINITIONS AND SPECIAL RULES.—For year. purposes of this paragraph— erning instrument creating the trust meets the following requirements: ‘‘(C) ORDERING RULE.—For purposes of this ‘‘(i) COMMITMENT TO LEASE TREATED AS ‘‘(A) No contribution will be accepted for paragraph, distributions from a FFARRM LEASE.—A commitment to enter into a lease any taxable year in excess of the amount al- Account (other than distributions of current shall be treated as a lease, and the parties to lowed as a deduction under subsection (a) for income) shall be treated as made from depos- such commitment shall be treated as lessor such year. its in the order in which such deposits were and lessee, respectively, if the lease is in ef- ‘‘(B) The trustee is a bank (as defined in made, beginning with the earliest deposits. fect at the time the property is placed in section 408(n)) or another person who dem- ‘‘(2) CESSATION IN ELIGIBLE BUSINESS.—At service. onstrates to the satisfaction of the Secretary the close of the first disqualification period ‘‘(ii) RELATED PERSONS.—A lease between that the manner in which such person will after a period for which the taxpayer was en- related persons shall not be considered a administer the trust will be consistent with gaged in an eligible farming business or com- lease. For purposes of the preceding sen- the requirements of this section. mercial fishing, there shall be deemed dis- tence, the term ‘related persons’ means— ‘‘(C) The assets of the trust consist en- tributed from the FFARRM Account of the ‘‘(I) members of an affiliated group (as de- tirely of cash or of obligations which have taxpayer an amount equal to the balance in fined in section 1504), and adequate stated interest (as defined in sec- such Account (if any) at the close of such ‘‘(II) persons having a relationship de- tion 1274(c)(2)) and which pay such interest disqualification period. For purposes of the scribed in subsection (b) of section 267(b) or not less often than annually. preceding sentence, the term ‘disqualifica- 707(b)(1); except that, for purposes of this ‘‘(D) All income of the trust is distributed tion period’ means any period of 2 consecu- clause, the phrase ‘80 percent or more’ shall currently to the grantor. tive taxable years for which the taxpayer is be substituted for the phrase ‘more than 50 ‘‘(E) The assets of the trust will not be not engaged in an eligible farming business percent’ each place it appears in such sub- commingled with other property except in a or commercial fishing. sections.’’. common trust fund or common investment ‘‘(3) CERTAIN RULES TO APPLY.—Rules simi- (c) REQUIREMENT TO USE STRAIGHT LINE fund. lar to the following rules shall apply for pur- METHOD.—Paragraph (3) of section 168(b) is poses of this section: amended by adding at the end the following ‘‘(2) ACCOUNT TAXED AS GRANTOR TRUST.— ‘‘(A) Section 220(f )(8) (relating to treat- new subparagraph: The grantor of a FFARRM Account shall be ment on death). ‘‘(G) Qualified leasehold improvement treated for purposes of this title as the ‘‘(B) Section 408(e)(2) (relating to loss of property described in subsection (e)(6).’’. owner of such Account and shall be subject (d) EFFECTIVE DATE.—The amendments to tax thereon in accordance with subpart E exemption of account where individual en- made by this section shall apply to qualified of part I of subchapter J of this chapter (re- gages in prohibited transaction). leasehold improvement property placed in lating to grantors and others treated as sub- ‘‘(C) Section 408(e)(4) (relating to effect of service after December 31, 2006. stantial owners). pledging account as security). ‘‘(e) INCLUSION OF AMOUNTS DISTRIBUTED.— ‘‘(D) Section 408(g) (relating to community TITLE IV—TAX RELIEF FOR FARMERS ‘‘(1) IN GENERAL.—Except as provided in property laws). SEC. 401. FARM, FISHING, AND RANCH RISK MAN- paragraph (2), there shall be includible in the ‘‘(E) Section 408(h) (relating to custodial AGEMENT ACCOUNTS. gross income of the taxpayer for any taxable accounts). (a) IN GENERAL.—Subpart C of part II of year— ‘‘(4) TIME WHEN PAYMENTS DEEMED MADE.— subchapter E of chapter 1 (relating to tax- able year for which deductions taken) is ‘‘(A) any amount distributed from a For purposes of this section, a taxpayer shall amended by inserting after section 468B the FFARRM Account of the taxpayer during be deemed to have made a payment to a following new section: such taxable year, and FFARRM Account on the last day of a tax- ‘‘(B) any deemed distribution under— able year if such payment is made on ac- ‘‘SEC. 468C. FARM, FISHING, AND RANCH RISK MANAGEMENT ACCOUNTS. ‘‘(i) subsection (f )(1) (relating to deposits count of such taxable year and is made on or ‘‘(a) DEDUCTION ALLOWED.—In the case of not distributed within 5 years), before the due date (without regard to exten- an individual engaged in an eligible farming ‘‘(ii) subsection (f )(2) (relating to cessation sions) for filing the return of tax for such business or commercial fishing, there shall in eligible farming business), and taxable year. be allowed as a deduction for any taxable ‘‘(iii) subparagraph (B) or (C) of subsection ‘‘(5) INDIVIDUAL.—For purposes of this sec- year the amount paid in cash by the tax- (f )(3) (relating to prohibited transactions tion, the term ‘individual’ shall not include payer during the taxable year to a Farm, and pledging account as security). an estate or trust. Fishing, and Ranch Risk Management Ac- ‘‘(2) EXCEPTIONS.—Paragraph (1)(A) shall ‘‘(6) DEDUCTION NOT ALLOWED FOR SELF-EM- count (hereinafter referred to as the not apply to— PLOYMENT TAX.—The deduction allowable by ‘FFARRM Account’). ‘‘(A) any distribution to the extent attrib- reason of subsection (a) shall not be taken ‘‘(b) LIMITATION.— utable to income of the Account, and into account in determining an individual’s ‘‘(1) CONTRIBUTIONS.—The amount which a ‘‘(B) the distribution of any contribution net earnings from self-employment (within taxpayer may pay into the FFARRM Ac- paid during a taxable year to a FFARRM Ac- the meaning of section 1402(a)) for purposes count for any taxable year shall not exceed count to the extent that such contribution of chapter 2. 20 percent of so much of the taxable income exceeds the limitation applicable under sub- ‘‘(g) REPORTS.—The trustee of a FFARRM of the taxpayer (determined without regard section (b) if requirements similar to the re- Account shall make such reports regarding to this section) which is attributable (deter- quirements of section 408(d)(4) are met. such Account to the Secretary and to the mined in the manner applicable under sec- For purposes of subparagraph (A), distribu- person for whose benefit the Account is tion 1301) to any eligible farming business or tions shall be treated as first attributable to maintained with respect to contributions, commercial fishing. income and then to other amounts. distributions, and such other matters as the October 3, 2000 CONGRESSIONAL RECORD — SENATE S9723 Secretary may require under regulations. SEC. 402. WRITTEN AGREEMENT RELATING TO tribution of food by a taxpayer in a farming The reports required by this subsection shall EXCLUSION OF CERTAIN FARM business (as defined in section 263A(e)(4)), be filed at such time and in such manner and RENTAL INCOME FROM NET EARN- paragraph (3)(A) shall be applied without re- furnished to such persons at such time and in INGS FROM SELF-EMPLOYMENT. gard to whether or not the contribution is such manner as may be required by such reg- (a) INTERNAL REVENUE CODE.—Section made by a corporation. 1402(a)(1)(A) (relating to net earnings from ulations.’’. ‘‘(B) LIMIT ON REDUCTION.—In the case of a self-employment) is amended by striking ‘‘an (b) TAX ON EXCESS CONTRIBUTIONS.— charitable contribution of food which is a arrangement’’ and inserting ‘‘a lease agree- (1) Subsection (a) of section 4973 (relating qualified contribution (within the meaning ment’’. to tax on excess contributions to certain tax- of paragraph (3)(A), as modified by subpara- (b) SOCIAL SECURITY ACT.—Section favored accounts and annuities) is amended graph (A) of this paragraph)— 211(a)(1)(A) of the Social Security Act is by striking ‘‘or’’ at the end of paragraph (3), ‘‘(i) paragraph (3)(B) shall not apply, and amended by striking ‘‘an arrangement’’ and by redesignating paragraph (4) as paragraph ‘‘(ii) the reduction under paragraph (1)(A) inserting ‘‘a lease agreement’’. (5), and by inserting after paragraph (3) the for such contribution shall be no greater (c) EFFECTIVE DATE.—The amendments following new paragraph: made by this section shall apply to taxable than the amount (if any) by which the ‘‘(4) a FFARRM Account (within the mean- years beginning after December 31, 2000. amount of such contribution exceeds twice ing of section 468C(d)), or’’. the basis of such food. SEC. 403. TREATMENT OF CONSERVATION RE- (2) Section 4973 is amended by adding at ‘‘(C) DETERMINATION OF BASIS.—For pur- SERVE PROGRAM PAYMENTS AS the end the following new subsection: RENTALS FROM REAL ESTATE. poses of this paragraph, if a taxpayer uses ‘‘(g) EXCESS CONTRIBUTIONS TO FFARRM (a) IN GENERAL.—Section 1402(a)(1) (defin- the cash method of accounting, the basis of ACCOUNTS.—For purposes of this section, in ing net earnings from self-employment) is any qualified contribution of such taxpayer the case of a FFARRM Account (within the amended by inserting ‘‘and including pay- shall be deemed to be 50 percent of the fair meaning of section 468C(d)), the term ‘excess ments under section 1233(2) of the Food Secu- market value of such contribution. contributions’ means the amount by which rity Act of 1985 (16 U.S.C. 3833(2))’’ after ‘‘(D) DETERMINATION OF FAIR MARKET the amount contributed for the taxable year ‘‘crop shares’’. VALUE.—In the case of a charitable contribu- to the Account exceeds the amount which (b) EFFECTIVE DATE.—The amendment tion of food which is a qualified contribution may be contributed to the Account under made by this section shall apply to payments (within the meaning of paragraph (3), as section 468C(b) for such taxable year. For made after December 31, 2000. modified by subparagraphs (A) and (B) of this purposes of this subsection, any contribution SEC. 404. EXEMPTION OF AGRICULTURAL BONDS paragraph) and which, solely by reason of in- which is distributed out of the FFARRM Ac- FROM STATE VOLUME CAP. ternal standards of the taxpayer, lack of count in a distribution to which section (a) IN GENERAL.—Section 146(g) (relating to market, or similar circumstances, or which 468C(e)(2)(B) applies shall be treated as an exception for certain bonds) is amended by is produced by the taxpayer exclusively for amount not contributed.’’. striking ‘‘and’’ at the end of paragraph (3), the purposes of transferring the food to an (3) The section heading for section 4973 is by striking the period at the end of para- organization described in paragraph (3)(A), amended to read as follows: graph (4) and inserting ‘‘, and’’, and by in- cannot or will not be sold, the fair market ‘‘SEC. 4973. EXCESS CONTRIBUTIONS TO CERTAIN serting after paragraph (4) the following new value of such contribution shall be ACCOUNTS, ANNUITIES, ETC.’’. paragraph: determined— (4) The table of sections for chapter 43 is ‘‘(5) any qualified small issue bond de- ‘‘(i) without regard to such internal stand- amended by striking the item relating to scribed in section 144(a)(12)(B)(ii).’’. ards, such lack of market, such cir- section 4973 and inserting the following new (b) EFFECTIVE DATE.—The amendments cumstances, or such exclusive purpose, and item: made by this section shall apply to bonds ‘‘(ii) if applicable, by taking into account ‘‘Sec. 4973. Excess contributions to certain issued after December 31, 2000. the price at which the same or similar food accounts, annuities, etc.’’. SEC. 405. MODIFICATIONS TO SECTION 512(b)(13). items are sold by the taxpayer at the time of (a) IN GENERAL.—Paragraph (13) of section the contribution (or, if not so sold at such (c) TAX ON PROHIBITED TRANSACTIONS.— time, in the recent past). (1) Subsection (c) of section 4975 (relating 512(b) is amended by redesignating subpara- graph (E) as subparagraph (F) and by insert- ‘‘(E) TERMINATION.—This paragraph shall to tax on prohibited transactions) is amend- not apply to any contribution made during ed by adding at the end the following new ing after subparagraph (D) the following new paragraph: any taxable year beginning after December paragraph: 31, 2003.’’. ‘‘(6) SPECIAL RULE FOR FFARRM ACCOUNTS.— ‘‘(E) PARAGRAPH TO APPLY ONLY TO EXCESS (b) EFFECTIVE DATE.—The amendment A person for whose benefit a FFARRM Ac- PAYMENTS.— made by subsection (a) shall apply to taxable count (within the meaning of section 468C(d)) ‘‘(i) IN GENERAL.—Subparagraph (A) shall years beginning after December 31, 2000. is established shall be exempt from the tax apply only to the portion of a specified pay- imposed by this section with respect to any ment received by the controlling organiza- SEC. 407. INCOME AVERAGING FOR FARMERS transaction concerning such account (which tion that exceeds the amount which would AND FISHERMEN NOT TO INCREASE have been paid if such payment met the re- ALTERNATIVE MINIMUM TAX LIABIL- would otherwise be taxable under this sec- ITY. tion) if, with respect to such transaction, the quirements prescribed under section 482. (a) IN GENERAL.—Section 55(c) (defining account ceases to be a FFARRM Account by ‘‘(ii) ADDITION TO TAX FOR VALUATION regular tax) is amended by redesignating reason of the application of section MISSTATEMENTS.—The tax imposed by this paragraph (2) as paragraph (3) and by insert- 468C(f )(3)(A) to such account.’’. chapter on the controlling organization shall ing after paragraph (1) the following new (2) Paragraph (1) of section 4975(e) is be increased by an amount equal to 20 per- paragraph: amended by redesignating subparagraphs (E) cent of such excess.’’. ‘‘(2) COORDINATION WITH INCOME AVERAGING and (F) as subparagraphs (F) and (G), respec- (b) EFFECTIVE DATE.— FOR FARMERS AND FISHERMEN.—Solely for tively, and by inserting after subparagraph (1) IN GENERAL.—The amendment made by purposes of this section, section 1301 (relat- (D) the following new subparagraph: this section shall apply to payments received ing to averaging of farm and fishing income) ‘‘(E) a FFARRM Account described in sec- or accrued after December 31, 2000. shall not apply in computing the regular tion 468C(d),’’. (2) PAYMENTS SUBJECT TO BINDING CONTRACT tax.’’. (d) FAILURE TO PROVIDE REPORTS ON TRANSITION RULE.—If the amendments made FFARRM ACCOUNTS.—Paragraph (2) of sec- by section 1041 of the Taxpayer Relief Act of (b) ALLOWING INCOME AVERAGING FOR FISH- tion 6693(a) (relating to failure to provide re- 1997 did not apply to any amount received or ERMEN.— ports on certain tax-favored accounts or an- accrued in the first 2 taxable years beginning (1) IN GENERAL.—Section 1301(a) is amended nuities) is amended by redesignating sub- on or after the date of the enactment of this by striking ‘‘farming business’’ and inserting paragraphs (C) and (D) as subparagraphs (D) Act under any contract described in sub- ‘‘farming business or fishing business’’. and (E), respectively, and by inserting after section (b)(2) of such section, such amend- (2) DEFINITION OF ELECTED FARM INCOME.— subparagraph (B) the following new subpara- ments also shall not apply to amounts re- (A) IN GENERAL.—Clause (i) of section graph: ceived or accrued under such contract before 1301(b)(1)(A) is amended by inserting ‘‘or ‘‘(C) section 468C(g) (relating to FFARRM January 1, 2001. fishing business’’ before the semicolon. Accounts),’’. SEC. 406. CHARITABLE DEDUCTION FOR CON- (B) CONFORMING AMENDMENT.—Subpara- (e) CLERICAL AMENDMENT.—The table of TRIBUTIONS OF FOOD INVENTORY. graph (B) of section 1301(b)(1) is amended by sections for subpart C of part II of sub- (a) IN GENERAL.—Subsection (e) of section inserting ‘‘or fishing business’’ after ‘‘farm- chapter E of chapter 1 is amended by insert- 170 (relating to certain contributions of ordi- ing business’’ both places it occurs. ing after the item relating to section 468B nary income and capital gain property) is (3) DEFINITION OF FISHING BUSINESS.—Sec- the following new item: amended by adding at the end the following tion 1301(b) is amended by adding at the end new paragraph: the following new paragraph: ‘‘Sec. 468C. Farm, Fishing and Ranch Risk ‘‘(7) SPECIAL RULE FOR CONTRIBUTIONS OF ‘‘(4) FISHING BUSINESS.—The term ‘fishing Management Accounts.’’. FOOD INVENTORY.—For purposes of this business’ means the conduct of commercial (f ) EFFECTIVE DATE.—The amendments section— fishing as defined in section 3 of the Magnu- made by this section shall apply to taxable ‘‘(A) CONTRIBUTIONS BY NON-CORPORATE son-Stevens Fishery Conservation and Man- years beginning after December 31, 2000. TAXPAYERS.—In the case of a charitable con- agement Act (16 U.S.C. 1802).’’. S9724 CONGRESSIONAL RECORD — SENATE October 3, 2000

(c) EFFECTIVE DATE.—The amendments ‘‘(i) such reduction, over by amounts paid during the year as divi- made by this section shall apply to taxable ‘‘(ii) the amount not apportioned to such dends on capital stock or other proprietary years beginning after December 31, 2000. patrons under subparagraph (A) for the tax- capital interests of the organization to the SEC. 408. COOPERATIVE MARKETING INCLUDES able year, extent that the articles of incorporation or VALUE-ADDED PROCESSING shall be treated as an increase in tax im- bylaws of such organization or other con- THROUGH ANIMALS. posed by this chapter on the organization. tract with patrons provide that such divi- (a) IN GENERAL.—Section 1388 (relating to Such increase shall not be treated as tax im- dends are in addition to amounts otherwise definitions and special rules) is amended by posed by this chapter for purposes of deter- payable to patrons which are derived from adding at the end the following new sub- mining the amount of any credit under this business done with or for patrons during the section: subpart or subpart A, B, E, or G.’’. taxable year.’’. ‘‘(k) COOPERATIVE MARKETING INCLUDES (b) IMPROVEMENTS TO SMALL ETHANOL PRO- (b) EFFECTIVE DATE.—The amendment VALUE-ADDED PROCESSING THROUGH ANI- DUCER CREDIT.— made by this section shall apply to distribu- MALS.—For purposes of section 521 and this (1) SMALL ETHANOL PRODUCER CREDIT NOT A tions in taxable years beginning after the subchapter, the term ‘marketing the prod- PASSIVE ACTIVITY CREDIT.—Clause (i) of sec- date of the enactment of this Act. ucts of members or other producers’ includes tion 469(d)(2)(A) is amended by striking ‘‘sub- TITLE V—ENERGY PROVISIONS feeding the products of members or other part D’’ and inserting ‘‘subpart D, other than producers to cattle, hogs, fish, chickens, or section 40(a)(3),’’. SEC. 501. ELECTION TO EXPENSE GEOLOGICAL AND GEOPHYSICAL EXPENDITURES. other animals and selling the resulting ani- (2) ALLOWING CREDIT AGAINST MINIMUM mals or animal products.’’. TAX.— (a) IN GENERAL.—Section 263 (relating to (b) EFFECTIVE DATE.—The amendment (A) IN GENERAL.—Subsection (c) of section capital expenditures) is amended by adding made by this section shall apply to taxable 38 (relating to limitation based on amount of at the end the following new subsection: years beginning after the date of the enact- tax) is amended by redesignating paragraph ‘‘(j) GEOLOGICAL AND GEOPHYSICAL EXPEND- ment of this Act. (3) as paragraph (4) and by inserting after ITURES FOR DOMESTIC OIL AND GAS WELLS.— SEC. 409. DECLARATORY JUDGMENT RELIEF FOR paragraph (2) the following new paragraph: Notwithstanding subsection (a), a taxpayer SECTION 521 COOPERATIVES. ‘‘(3) SPECIAL RULES FOR SMALL ETHANOL may elect to treat geological and geo- (a) IN GENERAL.—Section 7428(a)(1) (relat- PRODUCER CREDIT.— physical expenses incurred in connection ing to declaratory judgments of tax exempt ‘‘(A) IN GENERAL.—In the case of the small with the exploration for, or development of, organizations) is amended by striking ‘‘or’’ ethanol producer credit— oil or gas within the United States (as de- at the end of subparagraph (B) and by adding ‘‘(i) this section and section 39 shall be ap- fined in section 638) as expenses which are at the end the following new subparagraph: plied separately with respect to the credit, not chargeable to capital account. Any ex- ‘‘(D) with respect to the initial qualifica- and penses so treated shall be allowed as a deduc- tion or continuing qualification of a coopera- ‘‘(ii) in applying paragraph (1) to the tion in the taxable year in which paid or in- tive as described in section 521(b) which is credit— curred.’’. exempt from tax under section 521(a), or’’. ‘‘(I) subparagraphs (A) and (B) thereof shall (b) CONFORMING AMENDMENT.—Section (b) EFFECTIVE DATE.—The amendments not apply, and 263A(c)(3) is amended by inserting ‘‘263(j),’’ made by this section shall apply with respect ‘‘(II) the limitation under paragraph (1) (as after ‘‘263(i),’’. to pleadings filed after the date of the enact- modified by subclause (I)) shall be reduced (c) EFFECTIVE DATE.—The amendments ment of this Act but only with respect to de- by the credit allowed under subsection (a) for made by this section shall apply to expenses terminations (or requests for determina- the taxable year (other than the small eth- paid or incurred in taxable years beginning tions) made after January 1, 2000. anol producer credit). after December 31, 2001. SEC. 410. SMALL ETHANOL PRODUCER CREDIT. ‘‘(B) SMALL ETHANOL PRODUCER CREDIT.— SEC. 502. ELECTION TO EXPENSE DELAY RENTAL (a) ALLOCATION OF ALCOHOL FUELS CREDIT For purposes of this subsection, the term PAYMENTS TO PATRONS OF A COOPERATIVE.—Section ‘small ethanol producer credit’ means the (a) IN GENERAL.—Section 263 (relating to 40(g) (relating to alcohol used as fuel) is credit allowable under subsection (a) by rea- capital expenditures), as amended by section amended by adding at the end the following son of section 40(a)(3).’’. 501(a), is amended by adding at the end the new paragraph: (B) CONFORMING AMENDMENT.—Subclause following new subsection: ‘‘(6) ALLOCATION OF SMALL ETHANOL PRO- (II) of section 38(c)(2)(A)(ii) is amended by ‘‘(k) DELAY RENTAL PAYMENTS FOR DOMES- DUCER CREDIT TO PATRONS OF COOPERATIVE.— striking ‘‘(other’’ and all that follows TIC OIL AND GAS WELLS.— ‘‘(A) ELECTION TO ALLOCATE.— through ‘‘credit)’’ and inserting ‘‘(other than ‘‘(1) IN GENERAL.—Notwithstanding sub- ‘‘(i) IN GENERAL.—In the case of a coopera- the empowerment zone employment credit section (a), a taxpayer may elect to treat tive organization described in section 1381(a), or the small ethanol producer credit)’’. delay rental payments incurred in connec- any portion of the credit determined under (3) SMALL ETHANOL PRODUCER CREDIT NOT tion with the development of oil or gas with- subsection (a)(3) for the taxable year may, at ADDED BACK TO INCOME UNDER SECTION 87.— in the United States (as defined in section the election of the organization, be appor- Section 87 (relating to income inclusion of 638) as payments which are not chargeable to tioned pro rata among patrons of the organi- alcohol fuel credit) is amended to read as fol- capital account. Any payments so treated zation on the basis of the quantity or value lows: shall be allowed as a deduction in the tax- of business done with or for such patrons for ‘‘SEC. 87. ALCOHOL FUEL CREDIT. able year in which paid or incurred. the taxable year. ‘‘Gross income includes an amount equal ‘‘(2) DELAY RENTAL PAYMENTS.—For pur- ‘‘(ii) FORM AND EFFECT OF ELECTION.—An to the sum of— poses of paragraph (1), the term ‘delay rental election under clause (i) for any taxable year ‘‘(1) the amount of the alcohol mixture payment’ means an amount paid for the shall be made on a timely filed return for credit determined with respect to the tax- privilege of deferring development of an oil such year. Such election, once made, shall be payer for the taxable year under section or gas well.’’. irrevocable for such taxable year. 40(a)(1), and (b) CONFORMING AMENDMENT.—Section ‘‘(B) TREATMENT OF ORGANIZATIONS AND PA- ‘‘(2) the alcohol credit determined with re- 263A(c)(3), as amended by section 501(b), is TRONS.—The amount of the credit appor- spect to the taxpayer for the taxable year amended by inserting ‘‘263(k),’’ after tioned to patrons under subparagraph (A)— under section 40(a)(2).’’. ‘‘263(j),’’. ‘‘(i) shall not be included in the amount de- (c) CONFORMING AMENDMENT.—Section 1388 (c) EFFECTIVE DATE.—The amendments termined under subsection (a) with respect (relating to definitions and special rules for made by this section shall apply to payments to the organization for the taxable year, cooperative organizations), as amended by made or incurred in taxable years beginning ‘‘(ii) shall be included in the amount deter- section 408, is amended by adding at the end after December 31, 2001. mined under subsection (a) for the taxable the following new subsection: SEC. 503. 5-YEAR NET OPERATING LOSS year of each patron for which the patronage ‘‘(l) CROSS REFERENCE.—For provisions re- CARRYBACK FOR LOSSES ATTRIB- dividends for the taxable year described in lating to the apportionment of the alcohol UTABLE TO OPERATING MINERAL subparagraph (A) are included in gross in- fuels credit between cooperative organiza- INTERESTS OF INDEPENDENT OIL come, and tions and their patrons, see section 40(g)(6).’’. AND GAS PRODUCERS. ‘‘(iii) shall be included in gross income of (d) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—Paragraph (1) of section such patrons for the taxable year in the made by this section shall apply to taxable 172(b) (relating to years to which loss may be manner and to the extent provided in section years beginning after the date of the enact- carried) is amended by adding at the end the 87. ment of this Act. following new subparagraph: ‘‘(C) SPECIAL RULES FOR DECREASE IN CRED- SEC. 411. PAYMENT OF DIVIDENDS ON STOCK OF ‘‘(H) LOSSES ON OPERATING MINERAL INTER- ITS FOR TAXABLE YEAR.—If the amount of the COOPERATIVES WITHOUT REDUC- ESTS OF INDEPENDENT OIL AND GAS PRO- credit of a cooperative organization deter- ING PATRONAGE DIVIDENDS. DUCERS.—In the case of a taxpayer— mined under subsection (a)(3) for a taxable (a) IN GENERAL.—Subsection (a) of section ‘‘(i) which has an eligible oil and gas loss year is less than the amount of such credit 1388 (relating to patronage dividend defined) (as defined in subsection (j)) for a taxable shown on the return of the cooperative orga- is amended by adding at the end the fol- year, and nization for such year, an amount equal to lowing new sentence: ‘‘For purposes of para- ‘‘(ii) which is not an integrated oil com- the excess of— graph (3), net earnings shall not be reduced pany (as defined in section 291(b)(4)), October 3, 2000 CONGRESSIONAL RECORD — SENATE S9725 such eligible oil and gas loss shall be a net year preceding the calendar year in which only on production which is attributable to operating loss carryback to each of the 5 tax- the taxable year begins. the holder of an operating interest. able years preceding the taxable year of such ‘‘(B) INFLATION ADJUSTMENT.—In the case ‘‘(3) PRODUCTION FROM NONCONVENTIONAL loss.’’. of any taxable year beginning in a calendar SOURCES EXCLUDED.—In the case of produc- (b) ELIGIBLE OIL AND GAS LOSS.—Section year after 2001, each of the dollar amounts tion from a marginal well which is eligible 172 is amended by redesignating subsection contained in subparagraph (A) shall be in- for the credit allowed under section 29 for (j) as subsection (k) and by inserting after creased to an amount equal to such dollar the taxable year, no credit shall be allowable subsection (i) the following new subsection: amount multiplied by the inflation adjust- under this section unless the taxpayer elects ‘‘(j) ELIGIBLE OIL AND GAS LOSS.—For pur- ment factor for such calendar year (deter- not to claim credit under section 29 with re- poses of this section— mined under section 43(b)(3)(B) by sub- spect to the well.’’. ‘‘(1) IN GENERAL.—The term ‘eligible oil stituting ‘2000’ for ‘1990’). (b) CREDIT TREATED AS BUSINESS CREDIT.— and gas loss’ means the lesser of— ‘‘(C) REFERENCE PRICE.—For purposes of Section 38(b), as amended by section ‘‘(A) the amount which would be the net this paragraph, the term ‘reference price’ 131(b)(1), is amended by striking ‘‘plus’’ at operating loss for the taxable year if only in- means, with respect to any calendar year— the end of paragraph (12), by striking the pe- come and deductions attributable to oper- ‘‘(i) in the case of qualified crude oil pro- riod at the end of paragraph (13) and insert- ating mineral interests (as defined in section duction, the reference price determined ing’’, plus’’, and by adding at the end of the 614(d)) in oil and gas wells are taken into ac- under section 29(d)(2)(C), and following new paragraph: count, or ‘‘(ii) in the case of qualified natural gas ‘‘(14) the marginal oil and gas well produc- ‘‘(B) the amount of the net operating loss production, the Secretary’s estimate of the tion credit determined under section for such taxable year. annual average wellhead price per 1,000 cubic 45E(a).’’. ‘‘(2) COORDINATION WITH SUBSECTION (b)(2).— feet for all domestic natural gas. (c) CREDIT ALLOWED AGAINST REGULAR AND For purposes of applying subsection (b)(2), an MINIMUM TAX.— ‘‘(c) QUALIFIED CRUDE OIL AND NATURAL eligible oil and gas loss for any taxable year (1) IN GENERAL.—Subsection (c) of section GAS PRODUCTION.—For purposes of this shall be treated in a manner similar to the 38 (relating to limitation based on amount of section— manner in which a specified liability loss is tax), as amended by section 410(b)(2)(A), is ‘‘(1) IN GENERAL.—The terms ‘qualified treated. amended by redesignating paragraph (4) as crude oil production’ and ‘qualified natural ‘‘(3) ELECTION.—Any taxpayer entitled to a paragraph (5) and by inserting after para- gas production’ mean domestic crude oil or 5-year carryback under subsection (b)(1)(H) graph (3) the following new paragraph: natural gas which is produced from a mar- from any loss year may elect to have the ‘‘(4) SPECIAL RULES FOR MARGINAL OIL AND ginal well. carryback period with respect to such loss GAS WELL PRODUCTION CREDIT.— ‘‘(2) LIMITATION ON AMOUNT OF PRODUCTION year determined without regard to sub- ‘‘(A) IN GENERAL.—In the case of the mar- WHICH MAY QUALIFY.— section (b)(1)(H).’’. ginal oil and gas well production credit— ‘‘(A) IN GENERAL.—Crude oil or natural gas (c) EFFECTIVE DATE.—The amendments ‘‘(i) this section and section 39 shall be ap- produced during any taxable year from any made by this section shall apply to net oper- plied separately with respect to the credit, well shall not be treated as qualified crude ating losses for taxable years beginning after and oil production or qualified natural gas pro- December 31, 2001. ‘‘(ii) in applying paragraph (1) to the duction to the extent production from the SEC. 504. TEMPORARY SUSPENSION OF PERCENT- credit— AGE OF DEPLETION DEDUCTION well during the taxable year exceeds 1,095 ‘‘(I) subparagraphs (A) and (B) thereof shall LIMITATION BASED ON 65 PERCENT barrels or barrel equivalents. not apply, and OF TAXABLE INCOME. ‘‘(B) PROPORTIONATE REDUCTIONS.— ‘‘(II) the limitation under paragraph (1) (as (a) IN GENERAL.—Section 613A(d)(1) (relat- ‘‘(i) SHORT TAXABLE YEARS.—In the case of modified by subclause (I)) shall be reduced ing to limitation based on taxable income) is a short taxable year, the limitations under by the credit allowed under subsection (a) for amended by adding at the end the following this paragraph shall be proportionately re- the taxable year (other than the marginal oil new sentence: ‘‘This paragraph shall not duced to reflect the ratio which the number and gas well production credit). apply for taxable years beginning after De- of days in such taxable year bears to 365. cember 31, 2000, and before January 1, 2004.’’. ‘‘(B) MARGINAL OIL AND GAS WELL PRODUC- ‘‘(ii) WELLS NOT IN PRODUCTION ENTIRE (b) EFFECTIVE DATE.—The amendment TION CREDIT.—For purposes of this sub- YEAR.—In the case of a well which is not ca- made by this section shall apply to taxable section, the term ‘marginal oil and gas well pable of production during each day of a tax- years beginning after December 31, 2000. production credit’ means the credit allow- able year, the limitations under this para- SEC. 505. TAX CREDIT FOR MARGINAL DOMESTIC able under subsection (a) by reason of sec- graph applicable to the well shall be propor- OIL AND NATURAL GAS WELL PRO- tion 45E(a).’’. tionately reduced to reflect the ratio which DUCTION. (2) CONFORMING AMENDMENTS.— the number of days of production bears to (a) IN GENERAL.—Subpart D of part IV of (A) Subclause (II) of section 38(c)(2)(A)(ii), the total number of days in the taxable year. subchapter A of chapter 1 (relating to busi- as amended by section 410(b)(2)(B), is amend- ‘‘(3) DEFINITIONS.— ness credits), as amended by section 131(a), is ed by striking ‘‘or the small ethanol pro- ‘‘(A) MARGINAL WELL.—The term ‘marginal amended by adding at the end the following ducer credit’’ and inserting ‘‘, the small eth- well’ means a domestic well— new section: anol producer credit, or the marginal oil and ‘‘(i) the production from which during the ‘‘SEC. 45E. CREDIT FOR PRODUCING OIL AND GAS gas well production credit’’. taxable year is treated as marginal produc- FROM MARGINAL WELLS. (B) Subclause (II) of section 38(c)(3)(A)(ii), tion under section 613A(c)(6), or ‘‘(a) GENERAL RULE.—For purposes of sec- as added by section 410(b)(2)(A), is amended ‘‘(ii) which, during the taxable year— tion 38, the marginal well production credit by inserting ‘‘or the marginal oil and gas for any taxable year is an amount equal to ‘‘(I) has average daily production of not well production credit’’ after ‘‘the small eth- the product of— more than 25 barrel equivalents, and anol producer credit’’. ‘‘(1) the credit amount, and ‘‘(II) produces water at a rate not less than (d) CARRYBACK.—Subsection (a) of section ‘‘(2) the qualified crude oil production and 95 percent of total well effluent. 39 (relating to carryback and carryforward of the qualified natural gas production which is ‘‘(B) CRUDE OIL, ETC.—The terms ‘crude unused credits generally) is amended by add- attributable to the taxpayer. oil’, ‘natural gas’, ‘domestic’, and ‘barrel’ ing at the end the following new paragraph— ‘‘(b) CREDIT AMOUNT.—For purposes of this have the meanings given such terms by sec- ‘‘(3) 10-YEAR CARRYBACK FOR MARGINAL OIL section— tion 613A(e). AND GAS WELL PRODUCTION CREDIT.—In the ‘‘(1) IN GENERAL.—The credit amount is— ‘‘(C) BARREL EQUIVALENT.—The term ‘bar- case of the marginal oil and gas well produc- ‘‘(A) $3 per barrel of qualified crude oil pro- rel equivalent’ means, with respect to nat- tion credit— duction, and ural gas, a conversion ratio of 6,000 cubic feet ‘‘(A) this section shall be applied sepa- ‘‘(B) 50 cents per 1,000 cubic feet of quali- of natural gas to 1 barrel of crude oil. rately from the business credit (other than fied natural gas production. ‘‘(d) OTHER RULES.— the marginal oil and gas well production ‘‘(2) REDUCTION AS OIL AND GAS PRICES IN- ‘‘(1) PRODUCTION ATTRIBUTABLE TO THE TAX- credit), CREASE.— PAYER.—In the case of a marginal well in ‘‘(B) paragraph (1) shall be applied by sub- ‘‘(A) IN GENERAL.—The $3 and 50 cents which there is more than one owner of oper- stituting ‘10 taxable year’ for ‘1 taxable year’ amounts under paragraph (1) shall each be ating interests in the well and the crude oil in subparagraph (A) thereof, and reduced (but not below zero) by an amount or natural gas production exceeds the limita- ‘‘(C) paragraph (2) shall be applied— which bears the same ratio to such amount tion under subsection (c)(2), qualifying crude ‘‘(i) by substituting ‘31 taxable years’ for (determined without regard to this para- oil production or qualifying natural gas pro- ‘21 taxable years’ in subparagraph (A) there- graph) as— duction attributable to the taxpayer shall be of, and ‘‘(i) the excess (if any) of the applicable determined on the basis of the ratio which ‘‘(ii) by substituting ‘30 taxable years’ for reference price over $14 ($1.56 for qualified taxpayer’s revenue interest in the produc- ‘20 taxable years’ in subparagraph (B) there- natural gas production), bears to tion bears to the aggregate of the revenue in- of.’’. ‘‘(ii) $3 ($0.33 for qualified natural gas pro- terests of all operating interest owners in (e) COORDINATION WITH SECTION 29.—Sec- duction). the production. tion 29(a) is amended by striking ‘‘There’’ The applicable reference price for a taxable ‘‘(2) OPERATING INTEREST REQUIRED.—Any and inserting ‘‘At the election of the tax- year is the reference price for the calendar credit under this section may be claimed payer, there’’. S9726 CONGRESSIONAL RECORD — SENATE October 3, 2000

(f) CLERICAL AMENDMENT—The table of sec- ‘‘(1) such land or interest in land or water ‘‘(2) MAXIMUM AMOUNT OF DEDUCTION.—The tions for subpart D of part IV of subchapter was owned by the taxpayer or a member of amount of energy efficient commercial A of chapter 1, as amended by section 131(d), the taxpayer’s family (as defined in section building property expenditures taken into is amended by adding at the end the fol- 2032A(e)(2)) at all times during the 3-year pe- account under paragraph (1) shall not exceed lowing item: riod ending on the date of the sale, and an amount equal to the product of— ‘‘(2) such land or interest in land or water ‘‘(A) $2.25, and ‘‘Sec. 45E. Credit for producing oil and gas is being acquired by an eligible entity which ‘‘(B) the square footage of the building from marginal wells.’’. provides the taxpayer, at the time of acquisi- with respect to which the expenditures are (g) EFFECTIVE DATE.—The amendments tion, a written letter of intent which shall made. made by this section shall apply to produc- include the following statement: ‘The pur- ‘‘(3) YEAR DEDUCTION ALLOWED.—The deduc- tion in taxable years beginning after Decem- chaser’s intent is that this acquisition will tion under paragraph (1) shall be allowed in ber 31, 2000. serve 1 or more of the conservation purposes the taxable year in which the construction of SEC. 506. NATURAL GAS GATHERING LINES specified in clause (i), (ii), or (iii) of section the building is completed. TREATED AS 7-YEAR PROPERTY. 170(h)(4)(A).’ ‘‘(b) ENERGY EFFICIENT COMMERCIAL BUILD- (a) IN GENERAL.—Subparagraph (C) of sec- ‘‘(b) ELIGIBLE ENTITY.—For purposes of this ING PROPERTY EXPENDITURES.—For purposes tion 168(e)(3) (relating to classification of section, the term ‘eligible entity’ means— of this section, the term ‘energy efficient certain property) is amended by redesig- ‘‘(1) any agency of the United States or of commercial building property expenditures’ nating clause (ii) as clause (iii) and by in- any State or local government, or means an amount paid or incurred for energy serting after clause (i) the following new ‘‘(2) any other organization that— efficient commercial building property in- clause: ‘‘(A) is organized and at all times operated stalled on or in connection with new con- ‘‘(ii) any natural gas gathering line, and’’. principally for 1 or more of the conservation struction or reconstruction of property— (b) NATURAL GAS GATHERING LINE.—Sub- purposes specified in clause (i), (ii), or (iii) of ‘‘(1) for which depreciation is allowable section (i) of section 168 is amended by add- section 170(h)(4)(A), and under section 167, ‘‘(2) which is located in the United States, ing at the end the following new paragraph: ‘‘(B) is described in section 170(h)(3). and ‘‘(15) NATURAL GAS GATHERING LINE.—The ‘‘(c) STOCK IN HOLDING CORPORATIONS.—For term ‘natural gas gathering line’ means— purposes of this section, the term ‘land or an ‘‘(3) the construction or erection of which is completed by the taxpayer. ‘‘(A) the pipe, equipment, and appur- interest in land or water’ shall include stock tenances determined to be a gathering line in any corporation, if the fair market value Such property includes all residential rental by the Federal Energy Regulatory Commis- of the corporation’s land or interests in land property, including low-rise multifamily sion, or or water equals or exceeds 90 percent of the structures and single family housing prop- ‘‘(B) the pipe, equipment, and appur- fair market value of all of such corporation’s erty which is not within the scope of Stand- tenances used to deliver natural gas from the assets at all times during the 3-year period ard 90.1–1999 (as described in subsection wellhead or a common point to the point at ending on the date of the sale.’’. (c)(1)). Such term includes expenditures for labor costs properly allocable to the onsite which such gas first reaches— (b) CLERICAL AMENDMENT.—The table of preparation, assembly, or original installa- ‘‘(i) a gas processing plant, sections for part III of subchapter B of chap- tion of the property. ‘‘(ii) an interconnection with a trans- ter 1 is amended by inserting after the item ‘‘(c) ENERGY EFFICIENT COMMERCIAL BUILD- mission pipeline certificated by the Federal relating to section 121 the following new Energy Regulatory Commission as an inter- ING PROPERTY.—For purposes of subsection item: (b)— state transmission pipeline, ‘‘Sec. 121A. 50-percent exclusion of gain on ‘‘(1) IN GENERAL.—The term ‘energy effi- ‘‘(iii) an interconnection with an intra- sales of land or interests in land cient commercial building property’ means state transmission pipeline, or or water to eligible entities for any property which reduces total annual en- ‘‘(iv) a direct interconnection with a local conservation purposes.’’. ergy and power costs with respect to the distribution company, a gas storage facility, lighting, heating, cooling, ventilation, and or an industrial consumer.’’. (c) EFFECTIVE DATE.—The amendments hot water supply systems of the building by (c) EFFECTIVE DATE.—The amendments made by this section shall apply to sales oc- 50 percent or more in comparison to a ref- made by this section shall apply to property curring on or after December 31, 2003. erence building which meets the require- placed in service on or after the date of the SEC. 602. EXPANSION OF ESTATE TAX EXCLUSION ments of Standard 90.1–1999 of the American enactment of this Act. FOR REAL PROPERTY SUBJECT TO QUALIFIED CONSERVATION EASE- Society of Heating, Refrigerating, and Air SEC. 507. CLARIFICATION OF TREATMENT OF MENT. Conditioning Engineers and the Illuminating PIPELINE TRANSPORTATION IN- COME. (a) REPEAL OF CERTAIN RESTRICTIONS ON Engineering Society of North America using WHERE LAND IS LOCATED.—Clause (i) of sec- (a) IN GENERAL.—Section 954(g)(1) (defining methods of calculation under paragraph (2) foreign base company oil related income) is tion 2031(c)(8)(A) (defining land subject to a and certified by qualified professionals as amended by striking ‘‘or’’ at the end of sub- qualified conservation easement) is amended provided under subsection (f). paragraph (A), by striking the period at the to read as follows: ‘‘(2) METHODS OF CALCULATION.—The Sec- end of subparagraph (B) and inserting ‘‘, or’’, ‘‘(i) which is located in the United States retary, in consultation with the Secretary of and by inserting after subparagraph (B) the or any possession of the United States,’’. Energy, shall promulgate regulations which following new subparagraph: (b) EFFECTIVE DATE.—The amendments describe in detail methods for calculating ‘‘(C) the pipeline transportation of oil or made by this section shall apply to estates of and verifying energy and power consumption gas within such foreign country.’’. decedents dying after December 31, 2001. and cost, taking into consideration the pro- (b) EFFECTIVE DATE.—The amendment SEC. 603. TAX EXCLUSION FOR COST-SHARING visions of the 1998 California Nonresidential made by this section shall apply to taxable PAYMENTS UNDER PARTNERS FOR ACM Manual. These procedures shall meet WILDLIFE PROGRAM. years of controlled foreign corporations be- the following requirements: (a) IN GENERAL.—Section 126(a) (relating to ginning after December 31, 2001, and taxable ‘‘(A) In calculating tradeoffs and energy certain cost-sharing payments) is amended years of United States shareholders with or performance, the regulations shall prescribe by redesignating paragraph (10) as paragraph within which such taxable years of con- the costs per unit of energy and power, such (11) and by inserting after paragraph (9) the trolled foreign corporations end. as kilowatt hour, kilowatt, gallon of fuel oil, following new paragraph: and cubic foot or Btu of natural gas, which TITLE VI—CONSERVATION PROVISIONS ‘‘(10) The Partners for Fish and Wildlife may be dependent on time of usage. SEC. 601. EXCLUSION OF 50 PERCENT OF GAIN ON Program authorized by the Fish and Wildlife ‘‘(B) The calculational methodology shall SALES OF LAND OR INTERESTS IN Act of 1956 (16 U.S.C. 742a et seq.).’’. require that compliance be demonstrated for LAND OR WATER TO ELIGIBLE ENTI- (b) EFFECTIVE DATE.—The amendments a whole building. If some systems of the TIES FOR CONSERVATION PUR- made by this section shall apply to payments POSES. building, such as lighting, are designed later received after the date of the enactment of (a) IN GENERAL.—Part III of subchapter B than other systems of the building, the this Act. of chapter 1 (relating to items specifically method shall provide that either— excluded from gross income) is amended by SEC. 604. INCENTIVE FOR CERTAIN ENERGY EFFI- ‘‘(i) the expenses taken into account under inserting after section 121 the following new CIENT PROPERTY USED IN BUSI- subsection (a) shall not occur until the date NESS. section: designs for all energy-using systems of the (a) IN GENERAL.—Part VI of subchapter B building are completed, ‘‘SEC. 121A. 50-PERCENT EXCLUSION OF GAIN ON of chapter 1 is amended by adding at the end ‘‘(ii) the energy performance of all systems SALES OF LAND OR INTERESTS IN the following new section: LAND OR WATER TO ELIGIBLE ENTI- and components not yet designed shall be as- TIES FOR CONSERVATION PUR- ‘‘SEC. 199. ENERGY PROPERTY DEDUCTION. sumed to comply minimally with the re- POSES. ‘‘(a) DEDUCTION ALLOWED.— quirements of such Standard 90.1–1999, or ‘‘(a) EXCLUSION.—Gross income shall not ‘‘(1) IN GENERAL.—There shall be allowed as ‘‘(iii) the expenses taken into account include 50 percent of any gain from the sale a deduction for the taxable year an amount under subsection (a) shall be a fraction of of land or an interest in land or water (deter- equal to the amount of energy efficient com- such expenses based on the performance of mined without regard to any improvements) mercial building expenditures made by the less than all energy-using systems in accord- to an eligible entity if— taxpayer for the taxable year ance with subparagraph (C). October 3, 2000 CONGRESSIONAL RECORD — SENATE S9727 ‘‘(C) The expenditures in connection with compliance procedures after examining the loop biomass to co-fire with coal after such the design of subsystems in the building, requirements for energy consultants and date and before January 1, 2002.’’. such as the envelope, the heating, ventila- home energy ratings providers specified by (b) EXPANSION OF QUALIFIED ENERGY RE- tion, air conditioning and water heating sys- the Mortgage Industry National Accredita- SOURCES.— tem, and the lighting system shall be allo- tion Procedures for Home Energy Rating (1) IN GENERAL.—Section 45(c)(1) (defining cated to the appropriate building subsystem Systems. qualified energy resources) is amended by based on system-specific energy cost savings ‘‘(2) QUALIFIED INDIVIDUALS.—Individuals striking ‘‘and’’ at the end of subparagraph targets in regulations promulgated by the qualified to determine compliance shall be (B), by striking the period at the end of sub- Secretary of Energy which are equivalent, only those individuals who are recognized by paragraph (C) and inserting a comma, and by an organization certified by the Secretary using the calculation methodology, to the adding at the end the following new subpara- for such purposes. whole building requirement of 50 percent graphs: ‘‘(3) PROFICIENCY OF QUALIFIED INDIVID- savings. ‘‘(D) biomass (other than closed-loop bio- UALS.—The Secretary shall consult with non- ‘‘(D) The calculational methods under this mass), and profit organizations and State agencies with paragraph need not comply fully with sec- ‘‘(E) landfill gas.’’. tion 11 of such Standard 90.1–1999. expertise in energy efficiency calculations (2) DEFINITIONS.—Section 45(c) is amended and inspections to develop proficiency tests ‘‘(E) The calculational methods shall be by adding at the end the following new para- and training programs to qualify individuals fuel neutral, such that the same energy effi- graphs: ciency features shall qualify a building for to determine compliance. IOMASS ‘‘(g) BASIS REDUCTION.—For purposes of ‘‘(5) B .—The term ‘biomass’ means the deduction under this subsection regard- any solid, nonhazardous, cellulosic waste less of whether the heating source is a gas or this subtitle, if a deduction is allowed under this section with respect to any energy effi- material which is segregated from other oil furnace or an electric heat pump. waste materials and which is derived from— ‘‘(F) The calculational methods shall pro- cient commercial building property, the basis of such property shall be reduced by ‘‘(A) any of the following forest-related re- vide appropriate calculated energy savings sources: mill residues, precommercial for design methods and technologies not oth- the amount of the deduction so allowed. ‘‘(h) TERMINATION.—This section shall not thinnings, slash, and brush, but not includ- erwise credited in either such Standard 90.1– apply with respect to any taxable year begin- ing old-growth timber, 1999 or in the 1998 California Nonresidential ning after December 31, 2003.’’. ‘‘(B) urban sources, including waste pal- ACM Manual, including the following: (b) CONFORMING AMENDMENT.—Section lets, crates, and dunnage, manufacturing and ‘‘(i) Natural ventilation. 1016(a), as amended by section 211(b), is construction wood wastes, and landscape or ‘‘(ii) Evaporative cooling. amended by striking ‘‘and’’ at the end of right-of-way tree trimmings, but not includ- ‘‘(iii) Automatic lighting controls such as paragraph (27), by striking the period at the ing unsegregated municipal solid waste (gar- occupancy sensors, photocells, and time- end of paragraph (28) and inserting ‘‘, and’’, bage), paper that is commonly recycled, or clocks. and by inserting the following new para- pressure treated, chemically treated, or lead ‘‘(iv) Daylighting. graph: painted wood wastes, or ‘‘(v) Designs utilizing semi-conditioned ‘‘(29) for amounts allowed as a deduction ‘‘(C) agriculture sources, including orchard spaces that maintain adequate comfort con- under section 199(a).’’. tree crops, vineyard, grain, legumes, sugar, ditions without air conditioning or without (c) CLERICAL AMENDMENT.—The table of and other crop by-products or residues. heating. sections for part VI of subchapter B of chap- ‘‘(6) LANDFILL GAS.—The term ‘landfill gas’ ‘‘(vi) Improved fan system efficiency, in- ter 1 is amended by adding at the end the fol- means gas from the decomposition of any cluding reductions in static pressure. lowing new item: household solid waste, commercial solid ‘‘(vii) Advanced unloading mechanisms for ‘‘Sec. 199. Energy property deduction.’’. waste, and industrial solid waste disposed of mechanical cooling, such as multiple or vari- (d) EFFECTIVE DATE.—The amendments in a municipal solid waste landfill unit (as able speed compressors. such terms are defined in regulations pro- ‘‘(viii) The calculational methods may made by this section shall apply to taxable years beginning after December 31, 2000. mulgated under subtitle D of the Solid Waste take into account the extent of commis- Disposal Act (42 U.S.C. 6941 et seq.)).’’. sioning in the building, and allow the tax- SEC. 605. EXTENSION AND MODIFICATION OF TAX payer to take into account measured per- CREDIT FOR ELECTRICITY PRO- (c) SPECIAL RULES.—Section 45(d) (relating DUCED FROM BIOMASS. formance that exceeds typical performance. to definitions and special rules) is amended (a) EXTENSION AND MODIFICATION OF ‘‘(3) COMPUTER SOFTWARE.— by adding at the end the following new para- PLACED-IN-SERVICE RULES.— ‘‘(A) IN GENERAL.—Any calculation under graph: (1) IN GENERAL.—Section 45(c)(3) is amend- this subsection shall be prepared by qualified ‘‘(8) DENIAL OF DOUBLE BENEFIT.—No credit ed by adding at the end the following new shall be allowed under this section with re- computer software. subparagraphs: ‘‘(B) QUALIFIED COMPUTER SOFTWARE.—For spect to a facility for any taxable year if the ‘‘(D) BIOMASS FACILITY.—In the case of a fa- purposes of this paragraph, the term ‘quali- credit under section 29 is allowed in such cility using biomass (other than closed-loop year or has been allowed in any preceding fied computer software’ means software— biomass) to produce electricity, the term ‘‘(i) for which the software designer has taxable year with respect to any fuel pro- ‘qualified facility’ means any facility owned duced from such facility.’’. certified that the software meets all proce- by the taxpayer which is originally placed in dures and detailed methods for calculating service before January 1, 2002. (d) CONFORMING AMENDMENT.—Section 29(d) energy and power consumption and costs as ‘‘(E) LANDFILL GAS FACILITY.— (relating to other definitions and special required by the Secretary, ‘‘(i) IN GENERAL.—In the case of a facility rules) is amended by adding at the end the ‘‘(ii) which provides such forms as required using landfill gas to produce electricity, the following new paragraph: to be filed by the Secretary in connection term ‘qualified facility’ means any facility ‘‘(9) DENIAL OF DOUBLE BENEFIT.—No credit with energy efficiency of property and the of the taxpayer which is originally placed in shall be allowed under this section with re- deduction allowed under this section, and service after December 31, 1999, and before spect to any fuel produced from a facility for ‘‘(iii) which provides a notice form which January 1, 2002. any taxable year if the credit under section summarizes the energy efficiency features of ‘‘(ii) SPECIAL RULE.—In the case of a facil- 45 is allowed in such year or has been al- the building and its projected annual energy ity using landfill gas, such term shall in- lowed in any preceding taxable year with re- costs. clude equipment and housing (not including spect to such facility.’’. ‘‘(d) ALLOCATION OF DEDUCTION FOR PUBLIC wells and related systems required to collect (e) EFFECTIVE DATE.—The amendments PROPERTY.—In the case of energy efficient and transmit gas to the production facility) made by this section shall take effect on the commercial building property installed on or required to generate electricity which are in public property, the Secretary shall pro- date of the enactment of this Act. owned by the taxpayer and so placed in serv- mulgate regulations to allow the allocation ice. SEC. 606. TAX CREDIT FOR CERTAIN ENERGY EF- of the deduction to the person primarily re- FICIENT MOTOR VEHICLES. sponsible for designing the property in lieu ‘‘(F) SPECIAL RULE.—In the case of a quali- fied facility described in subparagraph (D) or (a) IN GENERAL.—Subpart B of part IV of of the public entity which is the owner of subchapter A of chapter 1, as amended by such property. Such person shall be treated (E), the period referred to in subsection section 160(a), is amended by adding at the as the taxpayer for purposes of this section. (a)(2)(A)(ii) shall be applied by substituting end the following new section: ‘‘(e) NOTICE TO OWNER.—The qualified indi- ‘3-year’ for ‘10-year’ and shall be treated as vidual shall provide an explanation to the beginning no earlier than January 1, 2001.’’. ‘‘SEC. 30C. CREDIT FOR HYBRID VEHICLES. owner of the building regarding the energy (2) CLOSED-LOOP BIOMASS FACILITY.—Sec- ‘‘(a) ALLOWANCE OF CREDIT.—There shall be efficiency features of the building and its tion 45(c)(3)(B) (relating to closed-loop bio- allowed as a credit against the tax imposed projected annual energy costs as provided in mass facility) is amended by striking ‘‘owned the notice under subsection (c)(3)(B)(iii). by the taxpayer’’ and all that follows and in- by this chapter for the taxable year an ‘‘(f) CERTIFICATION.— serting ‘‘owned by the taxpayer which is—’’ amount equal to the sum of the credit ‘‘(1) IN GENERAL.—Except as provided in ‘‘(i) originally placed in service after De- amounts for each qualified hybrid vehicle this subsection, the Secretary, in consulta- cember 31, 1992, and before January 1, 2002, or placed in service during the taxable year. tion with the Secretary of Energy, shall es- ‘‘(ii) originally placed in service before De- ‘‘(b) CREDIT AMOUNT.—For purposes of this tablish requirements for certification and cember 31, 1992, and modified to use closed- section— S9728 CONGRESSIONAL RECORD — SENATE October 3, 2000

‘‘(1) IN GENERAL.—The credit amount for ‘‘(4) ELECTION TO NOT TAKE CREDIT.—No SEC. 703. EXPANSION OF EXEMPTION FROM PER- each qualified hybrid vehicle with a re- credit shall be allowed under subsection (a) SONAL HOLDING COMPANY TAX FOR chargeable energy storage system that pro- for any vehicle if the taxpayer elects to not LENDING OR FINANCE COMPANIES. vides the applicable percentage of the max- have this section apply to such vehicle. (a) IN GENERAL.—Paragraph (6) of section imum available power shall be the amount ‘‘(f) REGULATIONS.— 542(c) (defining personal holding company) is specified in the following table: ‘‘(1) TREASURY.—The Secretary shall pre- amended— scribe such regulations as may be necessary (1) by striking ‘‘rents,’’ in subparagraph ‘‘Applicable percentage Credit amount (B), and Not less than 5 percent but less or appropriate to carry out the purposes of (2) by adding ‘‘and’’ at the end of subpara- than 10 percent ...... $500 this section. graph (B), Not less than 10 percent but less ‘‘(2) ENVIRONMENTAL PROTECTION AGENCY.— than 20 percent––– ...... $1,000 The Administrator of the Environmental (3) by striking subparagraph (C), and Not less than 20 percent but less Protection Agency, in coordination with the (4) by redesignating subparagraph (D) as than 30 percent––– ...... $1,500 Secretary of Transportation and consistent subparagraph (C). (b) EXCEPTION FOR LENDING OR FINANCE Not less than 30 percent ...... $2,000. with the laws administered by such agency COMPANIES DETERMINED ON AFFILIATED ‘‘(2) INCREASE IN CREDIT AMOUNT FOR REGEN- for automobiles, shall timely prescribe such GROUP BASIS.—Subsection (d) of section 542 ERATIVE BRAKING SYSTEM.—In the case of a regulations as may be necessary or appro- is amended by striking paragraphs (1) and (2) qualified hybrid vehicle that actively em- priate solely for the purpose of specifying and inserting the following new paragraphs: ploys a regenerative braking system which the testing and calculation procedures to de- ‘‘(1) LENDING OR FINANCE BUSINESS DE- supplies to the rechargeable energy storage termine whether a vehicle meets the quali- FINED.— For purposes of subsection (c)(6), system the applicable percentage of the en- fications for a credit under this section. the term ‘lending or finance business’ means ergy available from braking in a typical 60 ‘‘(g) APPLICATION OF SECTION.—This section a business of— miles per hour to 0 miles per hour braking shall apply to any qualified hybrid vehicles ‘‘(A) making loans, event, the credit amount determined under placed in service after December 31, 2003, and ‘‘(B) purchasing or discounting accounts this section shall be increased by the amount before January 1, 2005.’’ receivable, notes, or installment obligations, specified in the following table: (b) CONFORMING AMENDMENTS.— ‘‘(C) engaging in leasing (including enter- ‘‘Applicable percentage Credit amount (1) Section 53(d)(1)(B)(iii) is amended by in- ing into leases and purchasing, servicing, Not less than 20 percent but less serting ‘‘or not allowed under section 30C and disposing of leases and leased assets), than 40 percent ...... $250 solely by reason of the application of section ‘‘(D) rendering services or making facili- Not less than 40 percent but less 30C(d)(2)’’ after ‘‘section 30(b)(3)(B)’’. ties available in the ordinary course of a than 60 percent ...... $500 (2) Section 55(c)(2) is amended by inserting lending or finance business, Not less than 60 percent ...... $1,000. ‘‘30C(d),’’ after ‘‘30(b)(3),’’. ‘‘(E) rendering services or making facili- ‘‘(c) DEFINITIONS.—For purposes of this (3) Subsection (a) of section 1016, as amend- ties available in connection with activities section— ed by section 604(b), is amended by striking described in subparagraphs (A), (B), and (C) ‘‘(1) QUALIFIED HYBRID VEHICLE.—The term ‘‘and’’ at the end of paragraph (28), by strik- carried on by the corporation rendering serv- ‘qualified hybrid vehicle’ means an auto- ing the period at the end of paragraph (29) ices or making facilities available, or mobile that meets all applicable regulatory and inserting ‘‘, and’’, and by adding at the ‘‘(F) rendering services or making facili- requirements and that can draw propulsion end the following new paragraph: ties available to another corporation which energy from both of the following onboard ‘‘(30) to the extent provided in section is engaged in the lending or finance business sources of stored energy: 30C(e)(1).’’. (within the meaning of this paragraph), if ‘‘(A) A consumable fuel. (4) The table of sections for subpart B of such services or facilities are related to the ‘‘(B) A rechargeable energy storage sys- part IV of subchapter A of chapter 1, as lending or finance business (within such tem. amended by section 160(b), is amended by meaning) of such other corporation and such ‘‘(2) MAXIMUM AVAILABLE POWER.—The adding at the end the following new item: other corporation and the corporation ren- term ‘maximum available power’ means the ‘‘Sec. 30C. Credit for hybrid vehicles.’’. dering services or making facilities available maximum value of the sum of the heat en- are members of the same affiliated group (as TITLE VII—ADDITIONAL TAX PROVISIONS gine and electric drive system power or other defined in section 1504). nonheat energy conversion devices available SEC. 701. LIMITATION ON USE OF NONACCRUAL ‘‘(2) EXCEPTION DETERMINED ON AN AFFILI- for a driver’s command for maximum accel- EXPERIENCE METHOD OF ACCOUNT- ING. ATED GROUP BASIS.—In the case of a lending eration at vehicle speeds under 75 miles per or finance company which is a member of an hour. (a) IN GENERAL.—Section 448(d)(5) (relating to special rule for services) is amended— affiliated group (as defined in section 1504), ‘‘(3) AUTOMOBILE.—The term ‘automobile’ such company shall be treated as meeting has the meaning given such term by section (1) by inserting ‘‘in fields described in para- the requirements of subsection (c)(6) if such 4064(b)(1) (without regard to subparagraphs graph (2)(A)’’ after ‘‘services by such per- group (determined by taking into account (B) and (C) thereof). A vehicle shall not fail son’’, and only members of such group which are en- to be treated as an automobile solely by rea- (2) by inserting ‘‘CERTAIN PERSONAL’’ before gaged in a lending or finance business) meets son of weight if such vehicle is rated at 8,500 ‘‘SERVICES’’ in the heading. (b) EFFECTIVE DATE.— such requirements.’’. pounds gross vehicle weight rating or less. (c) EFFECTIVE DATE.—The amendments (1) IN GENERAL.—The amendments made by ‘‘(d) APPLICATION WITH OTHER CREDITS.— made by this section shall apply to taxable this section shall apply to taxable years end- The credit allowed by subsection (a) for any years beginning after December 31, 2000. taxable year shall not exceed the excess (if ing after the date of the enactment of this any) of— Act. SEC. 704. CHARITABLE CONTRIBUTION DEDUC- TION FOR CERTAIN EXPENSES IN- ‘‘(1) the regular tax for the taxable year re- (2) CHANGE IN METHOD OF ACCOUNTING.—In CURRED IN SUPPORT OF NATIVE duced by the sum of the credits allowable the case of any taxpayer required by the ALASKAN SUBSISTENCE WHALING. under subpart A and the preceding sections amendments made by this section to change (a) IN GENERAL.—Section 170 (relating to of this subpart, over its method of accounting for its first taxable charitable, etc., contributions and gifts) is ‘‘(2) the tentative minimum tax for the year ending after the date of the enactment amended by redesignating subsection (m) as taxable year. of this Act— subsection (n) and by inserting after sub- ‘‘(e) SPECIAL RULES.— (A) such change shall be treated as initi- section (l) the following new subsection: ‘‘(1) BASIS REDUCTION.—The basis of any ated by the taxpayer, ‘‘(m) EXPENSES PAID BY CERTAIN WHALING property for which a credit is allowable (B) such change shall be treated as made CAPTAINS IN SUPPORT OF NATIVE ALASKAN under subsection (a) shall be reduced by the with the consent of the Secretary of the SUBSISTENCE WHALING.— amount of such credit (determined without Treasury, and ‘‘(1) IN GENERAL.—In the case of an indi- regard to subsection (d)). (C) the net amount of the adjustments re- vidual who is recognized by the Alaska Es- ‘‘(2) RECAPTURE.—The Secretary shall, by quired to be taken into account by the tax- kimo Whaling Commission as a whaling cap- regulations, provide for recapturing the ben- payer under section 481 of the Internal Rev- tain charged with the responsibility of main- efit of any credit allowable under subsection enue Code of 1986 shall be taken into account taining and carrying out sanctioned whaling (a) with respect to any property which ceases over a period (not greater than 4 taxable activities and who engages in such activities to be property eligible for such credit. years) beginning with such first taxable during the taxable year, the amount de- ‘‘(3) PROPERTY USED OUTSIDE UNITED year. scribed in paragraph (2) (to the extent such STATES, ETC., NOT QUALIFIED.—No credit shall SEC. 702. REPEAL OF SECTION 530(d) OF THE amount does not exceed $7,500 for the taxable be allowed under this section with respect REVENUE ACT OF 1978. year) shall be treated for purposes of this to— (a) IN GENERAL.—Section 530(d) of the Rev- section as a charitable contribution. ‘‘(A) any property for which a credit is al- enue Act of 1978 (as added by section 1706 of ‘‘(2) AMOUNT DESCRIBED.— lowed under section 30, the Tax Reform Act of 1986) is repealed. ‘‘(A) IN GENERAL.—The amount described in ‘‘(B) any property referred to in section (b) EFFECTIVE DATE.—The amendment this paragraph is the aggregate of the rea- 50(b), or made by subsection (a) shall apply to periods sonable and necessary whaling expenses paid ‘‘(C) any property taken into account ending after the date of the enactment of by the taxpayer during the taxable year in under section 179 or 179A. this Act. carrying out sanctioned whaling activities. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9729

‘‘(B) WHALING EXPENSES.—For purposes of plicable State statute, a court of the State and 461(h) were satisfied at the time the subparagraph (A), the term ‘whaling ex- which enacted such statute. structured settlement was entered into, the penses’ includes expenses for— ‘‘(B) SPECIAL RULE.—In the case of an ap- subsequent occurrence of a structured settle- ‘‘(i) the acquisition and maintenance of plicable State statute described in paragraph ment factoring transaction shall not affect whaling boats, weapons, and gear used in (3)(B), such term also includes a court of the the application of the provisions of such sec- sanctioned whaling activities, State in which the payee of the structured tions to the parties to the structured settle- ‘‘(ii) the supplying of food for the crew and settlement is domiciled. ment (including an assignee under a quali- other provisions for carrying out such activi- ‘‘(5) QUALIFIED ORDER DISPOSITIVE.—A fied assignment under section 130) in any ties, and qualified order shall be treated as dispositive taxable year. ‘‘(iii) storage and distribution of the catch for purposes of the exception under this sub- ‘‘(2) NO WITHHOLDING OF TAX.—The provi- from such activities. section. sions of section 3405 regarding withholding of ‘‘(3) SANCTIONED WHALING ACTIVITIES.—For ‘‘(c) DEFINITIONS.—For purposes of this tax shall not apply to the person making the purposes of this subsection, the term ‘sanc- section— payments in the event of a structured settle- tioned whaling activities’ means subsistence ‘‘(1) STRUCTURED SETTLEMENT.—The term ment factoring transaction.’’. bowhead whale hunting activities conducted ‘structured settlement’ means an (b) CLERICAL AMENDMENTS.—The table of pursuant to the management plan of the arrangement— chapters for subtitle E is amended by adding Alaska Eskimo Whaling Commission.’’. ‘‘(A) which is established by— at the end the following new item: (b) EFFECTIVE DATE.—The amendments ‘‘(i) suit or agreement for the periodic pay- ‘‘CHAPTER 55. Structured settlement fac- made by subsection (a) shall apply to taxable ment of damages excludable from the gross years ending after December 31, 2000. income of the recipient under section toring transactions.’’. (c) EFFECTIVE DATES.— SEC. 705. IMPOSITION OF EXCISE TAX ON PER- 104(a)(2), or SONS WHO ACQUIRE STRUCTURED ‘‘(ii) agreement for the periodic payment of (1) IN GENERAL.—The amendments made by SETTLEMENT PAYMENTS IN FAC- compensation under any workers’ compensa- this section (other than the provisions of TORING TRANSACTIONS. tion act excludable from the gross income of section 5891(d) of the Internal Revenue Code (a) IN GENERAL.—Subtitle E is amended by the recipient under section 104(a)(1), and of 1986, as added by this section) shall apply adding at the end the following new chapter: ‘‘(B) under which the periodic payments to structured settlement factoring trans- ‘‘CHAPTER 55—STRUCTURED are— actions (as defined in section 5891(c) of such SETTLEMENT FACTORING TRANSACTIONS ‘‘(i) of the character described in subpara- Code as adopted by this section) entered into ‘‘Sec. 5891. Structured settlement fac- graphs (A) and (B) of section 130(c)(2), and on or after the 30th day following the date of toring transactions. ‘‘(ii) payable by a person who is a party to the enactment of this Act. (2) CLARIFICATION OF EXISTING LAW.—Sec- ‘‘SEC. 5891. STRUCTURED SETTLEMENT FAC- the suit or agreement or to the workers’ TORING TRANSACTIONS. compensation claim or by a person who has tion 5891(d) of such Code (as so added) shall ‘‘(a) IMPOSITION OF TAX.—There is hereby assumed the liability for such periodic pay- apply to transactions entered into before, on, imposed on any person who acquires directly ments under a qualified assignment in ac- or after such 30th day. or indirectly structured settlement payment cordance with section 130. (3) TRANSITION RULE.—In the case of a rights in a structured settlement factoring ‘‘(2) STRUCTURED SETTLEMENT PAYMENT structured settlement factoring transaction transaction a tax equal to 40 percent of the RIGHTS.—The term ‘structured settlement entered into during the period beginning on factoring discount as determined under sub- payment rights’ means rights to receive pay- the 30th day following the date of the enact- section (c)(4) with respect to such factoring ments under a structured settlement. ment of this Act and ending on July 1, 2002, transaction. ‘‘(3) STRUCTURED SETTLEMENT FACTORING no tax shall be imposed under section 5891(a) ‘‘(b) EXCEPTION FOR CERTAIN APPROVED TRANSACTION.— of such Code if— TRANSACTIONS.— ‘‘(A) IN GENERAL.—The term ‘structured (A) the structured settlement payee is ‘‘(1) IN GENERAL.—The tax under subsection settlement factoring transaction’ means a domiciled in a State (or possession of the (a) shall not apply in the case of a structured transfer of structured settlement payment United States) which has not enacted a stat- settlement factoring transaction in which rights (including portions of structured set- ute providing that the structured settlement the transfer of structured settlement pay- tlement payments) made for consideration factoring transaction is ineffective unless ment rights is approved in advance in a by means of sale, assignment, pledge, or the transaction has been approved by an qualified order. other form of encumbrance or alienation for order, judgment, or decree of a court (or ‘‘(2) QUALIFIED ORDER.—For purposes of consideration. where applicable, a responsible administra- this section, the term ‘qualified order’ means ‘‘(B) EXCEPTION.—Such term shall not tive authority) which finds that such a final order, judgment, or decree which— include— transaction— ‘‘(A) finds that the transfer described in ‘‘(i) the creation or perfection of a security (i) does not contravene any Federal or paragraph (1)— interest in structured settlement payment State statute or the order of any court (or ‘‘(i) does not contravene any Federal or rights under a blanket security agreement responsible administrative authority), and State statute or the order of any court or re- entered into with an insured depository in- (ii) is in the best interest of the structured sponsible administrative authority, and stitution in the absence of any action to re- settlement payee or is appropriate in light of ‘‘(ii) is in the best interest of the payee, direct the structured settlement payments a hardship faced by the payee, and taking into account the welfare and support to such institution (or agent or successor (B) the person acquiring the structured of the payee’s dependents, and thereof) or otherwise to enforce such blanket settlement payment rights discloses to the ‘‘(B) is issued— security interest as against the structured structured settlement payee in advance of ‘‘(i) under the authority of an applicable settlement payment rights, or the structured settlement factoring trans- State statute by an applicable State court, ‘‘(ii) a subsequent transfer of structured action the amounts and due dates of the pay- or settlement payment rights acquired in a ments to be transferred, the aggregate ‘‘(ii) by the responsible administrative au- structured settlement factoring transaction. amount to be transferred, the consideration thority (if any) which has exclusive jurisdic- ‘‘(4) FACTORING DISCOUNT.—The term ‘fac- to be received by the structured settlement tion over the underlying action or pro- toring discount’ means an amount equal to payee for the transferred payments, the dis- ceeding which was resolved by means of the the excess of— counted present value of the transferred pay- structured settlement. ‘‘(A) the aggregate undiscounted amount of ments including the present value as deter- ‘‘(3) APPLICABLE STATE STATUTE.—For pur- structured settlement payments being ac- mined in the manner described in section poses of this section, the term ‘applicable quired in the structured settlement factoring 7520 of such Code, and the expenses required State statute’ means a statute providing for transaction, over under the terms of the structured settlement the entry of an order, judgment, or decree ‘‘(B) the total amount actually paid by the factoring transaction to be paid by the struc- described in paragraph (2)(A) which is en- acquirer to the person from whom such tured settlement payee or deducted from the acted by— structured settlement payments are ac- proceeds of such transaction. ‘‘(A) the State in which the payee of the quired. structured settlement is domiciled, or ‘‘(5) RESPONSIBLE ADMINISTRATIVE AUTHOR- TECHNICAL EXPLANATION OF S. 3152, ‘‘(B) if there is no statute described in sub- ITY.—The term ‘responsible administrative THE ‘‘COMMUNITY RENEWAL AND NEW paragraph (A), the State in which either the authority’ means the administrative author- MARKETS ACT OF 2000’’ party to the structured settlement (includ- ity which had jurisdiction over the under- INTRODUCTION ing an assignee under a qualified assignment lying action or proceeding which was re- This document prepared by the staff of the under section 130) or the person issuing the solved by means of the structured settle- Joint Committee on Taxation provides a funding asset for the structured settlement ment. technical explanation of S. 3152, the ‘‘Com- is domiciled or has its principal place of ‘‘(6) STATE.—The term ‘State’ includes any munity Renewal and New Markets Act of business. possession of the United States. 2000.’’ The Community Renewal and New ‘‘(4) APPLICABLE STATE COURT.—For pur- ‘‘(d) COORDINATION WITH OTHER PROVI- Markets Act of 2000 provides various tax in- poses of this section— SIONS.— centives for distressed communities, afford- ‘‘(A) IN GENERAL.—The term ‘applicable ‘‘(1) IN GENERAL.—If the applicable require- able housing, urban and rural infrastructure, State court’ means, with respect to any ap- ments of sections 72, 104(a) (1) and (2), 130, the production of energy, conservation, tax S9730 CONGRESSIONAL RECORD — SENATE October 3, 2000 relief for farmers, and several additional tax ital gain rate for qualifying assets held for cent; (2) in the case of an urban area, at least provisions. more than five years. 70 percent of the households have incomes I. INCENTIVES FOR DISTRESSED AREAS In addition, the provision authorizes the below 80 percent of the median income of Secretaries of HUD and Agriculture to des- households within the local government ju- A. TAX INCENTIVES FOR RENEWAL ZONES AND ignate 30 new ‘‘renewal zones’’ that have the risdiction; (3) the unemployment rate is at EMPOWERMENT ZONES (SECS. 101 AND 111–115 same tax incentives as empowerment zones. least 1.5 times the national unemployment OF THE BILL AND SECS. 1391, 1394, 1396, The designations of the new renewal zones rate; and (4) the area is one of pervasive pov- 1397A–D, AND NEW SEC. 1400E OF THE CODE) will take effect on January 1, 2002, and ter- erty, unemployment, and general distress. In PRESENT LAW minate on December 31, 2009. general, the areas with the highest average In recent years, provisions have been added Thus, once the 30 new renewal zones have ranking of eligibility factors (1), (2) and (3), to the Internal Revenue Code that target been designated there will exist a total of 61 above will be designated as renewal zones. specific geographic areas for special Federal zones providing similar tax incentives for States without any empowerment zone income tax treatment. As described in great- distressed areas, all of whose designations would be given priority in the designation er detail below, empowerment zones and en- will terminate on December 31, 2009. The re- process. Moreover, the designations of re- terprise communities generally provide tax newal zones are treated as empowerment newal zones must result in (after taking into incentives for businesses that locate within zones for all purposes of the Code. After tak- account existing empowerment zones) each certain geographic areas designated by the ing into account existing empowerment State having at least one zone designation Secretaries of Housing and Urban Develop- zones (and the designation of the new re- (empowerment or renewal zone). ment (‘‘HUD’’) and Agriculture. newal zones), each State shall have at least There are no geographic size limitations Round I empowerment zones one zone. placed on renewal zones. Instead, the bound- The Omnibus Budget Reconciliation Act of Existing zones ary of a renewal zone must be continuous. In 1993 (‘‘OBRA 1993’’) authorized the designa- Conforming and enhancing incentives for addition, a renewal zone must have a min- tion of nine empowerment zones (‘‘Round I Round I and Round II empowerment zones.— imum population of 4,000 if the area is lo- empowerment zones’’) to provide tax incen- The provision extends the designation of em- cated within a metropolitan statistical area tives for businesses to locate within targeted powerment zone status for Round I and II (at least 1,000 in all other cases), and a max- areas designated by the Secretaries of HUD empowerment zones through December 31, imum population of not more than 200,000. and Agriculture. The Taxpayer Relief Act of 2009. In addition, a 15-percent wage credit is The population limitations do not apply to 1997 (‘‘1997 Act’’) authorized the designation made available in all Round I and II em- any renewal zone that is entirely within an of two additional Round I urban empower- powerment zones, effective in 2002 (except in Indian reservation. ment zones. the case of the two additional Round I em- Required State and local commitments.—In Businesses in the 11 Round I empowerment powerment zones, for which the 15-percent order for an area to be designated as a re- zones qualify for the following tax incen- wage credit takes effect in 2005 as scheduled newal zone, State and local governments are tives: (1) a 20-percent wage credit for the under present law). For all the empowerment required to submit a written course of action first $15,000 of wages paid to a zone resident zones, the 15-percent wage credit expires on in which the State and local governments who works in the empowerment zone, (2) an December 31, 2009. promise to take at least four of the following additional $20,000 of section 179 expensing for In addition, $35,000 (rather than $20,000) of governmental actions: (1) a reduction of tax qualifying zone property, and (3) tax-exempt additional section 179 expensing is available rates or fees; (2) an increase in the level of financing for certain qualifying zone facili- for qualified zone property placed in service efficiency of local services; (3) crime reduc- ties. The tax incentives with respect to the in taxable years beginning after December tion strategies; (4) actions to remove or empowerment zones designated by OBRA 31, 2001, by a qualified business in any of the streamline governmental requirements; (5) 1993 generally are available during the 10- empowerment zones. involvement by private entities and commu- year period of 1995 through 2004. The tax in- Businesses located in Round I empower- nity groups, such as to provide jobs and job centives with respect to the two additional ment zones are eligible for the more gen- training and financial assistance; and (6) the Round I empowerment zones generally are erous tax-exempt bond rules that apply gift (or sale at below fair market value) of available during the 10-year period of 2000 under present law to businesses in the Round surplus realty by the State or local govern- through 2009. II empowerment zones (sec. 1394(f)). The pro- ment to community organizations or private companies. Round II empowerment zones posal applies to tax-exempt bonds issued after December 31, 2001. Bonds that have Enterprise community seeking designation as The 1997 Act also authorized the designa- been issued by businesses in Round I zones renewal zones.—An enterprise community tion of 20 additional empowerment zones before January 1, 2002, are not taken into ac- can apply for designation as a renewal zone. (‘‘Round II empowerment zones’’), of which count in applying the limitations on the In selecting a nominated area as a renewal 15 are located in urban areas and five are lo- amount of new empowerment zone facility zone, the Secretary shall take into account cated in rural areas. Businesses in the Round bonds that can be issued under the provision. the status of a nominated area as an enter- II empowerment zones are not eligible for Businesses located in any empowerment prise community. If a renewal zone designa- the wage credit, but are eligible to receive zone also qualify for a zero-percent capital tion is granted, then an area’s designation as up to $20,000 of additional section 179 expens- gains rate for gain from the sale of a quali- an enterprise community ceases as of the ing. Businesses in the Round II empower- fying zone assets acquired after date of en- date the area’s designation as a renewal zone ment zones also are eligible for more gen- actment and before January 1, 2010, and held takes effect. erous tax-exempt financing benefits than for more than five years. Assets that would Tax incentives for renewal zones.—Busi- those available in the Round I empowerment qualify for this incentive would be similar to nesses in renewal zones will have the same zones. Specifically, the tax-exempt financing the types of assets that qualify for the tax incentives as businesses in existing em- benefits for the Round II empowerment zones present-law zero percent capital gains rate powerment zones (as modified by this provi- are not subject to the State private activity for qualifying D.C. Zone assets. The zero-per- sion), which will be available during the pe- bond volume caps (but are subject to sepa- cent capital gains rate is limited to an ag- riod beginning January 1, 2002 and ending rate per-zone volume limitations), and the gregate amount not to exceed $25 million of December 31, 2009 (i.e., a zero percent capital per-business size limitations that apply to gain per taxpayer. Gain attributable to the gains rate for qualifying assets; a 15-percent the Round I empowerment zones and enter- period before the date of enactment or after wage credit for qualifying wages; $35,000 in prise communities (i.e., $3 million for each December 31, 2014, is not eligible for the zero- additional 179 expensing for qualifying prop- qualified enterprise zone business with a percent rate. erty; and the enhanced tax-exempt bond maximum of $20 million for each principal Renewal zones rules that currently apply to businesses in user for all zones and communities) do not the Round II empowerment zones). Designation of 30 renewal zones.—The Secre- apply to qualifying bonds issued for Round II GAO report.—The General Accounting Of- taries of HUD and Agriculture are authorized empowerment zones. The tax incentives with fice will audit and report to Congress every to designate up to 30 renewal zones from respect to the Round II empowerment zones three years (beginning on January 31, 2004) areas nominated by States and local govern- generally are available during the 10-year pe- on the renewal zone program and its effect ments. At least six of the designated renewal riod of 1999 through 2008. on poverty, unemployment, and economic zones must be in rural areas. The Secretary EXPLANATION OF PROVISION growth within the designated renewal zones. of HUD is required to publish (within four Overview months after enactment) regulations de- EFFECTIVE DATE As described in detail below, the provision scribing the nomination and selection proc- The extension of the existing empower- conforms the wage credit and tax-exempt ess. Designations of renewal zones must be ment zone designations is effective after the bond incentives for the Round I and Round II made before January 1, 2002, and the designa- date of enactment. empowerment zones and extends their des- tions are effective for the period beginning The additional section 179 expensing and ignations through December 31, 2009. The on January 1, 2002 through December 31, 2009. the more generous tax-exempt bond rules for provision also increases the incentives to ex- Eligibility criteria.—To be designated as a the existing empowerment zones is effective isting empowerment zones by (1) increasing renewal zone, a nominated area must meet after December 31, 2001. The zero-percent the additional section 179 deduction to the following criteria: (1) each census tract capital gains rate applies to qualifying prop- $35,000, and (2) providing a zero-percent cap- must have a poverty rate of at least 20 per- erty purchased after the date of enactment October 3, 2000 CONGRESSIONAL RECORD — SENATE S9731

(after December 31, 2001 in the case of re- generally refers to certain enterprise zone D. NEW MARKETS TAX CREDIT (SECTION 131 OF newal zones). businesses within the D.C. Zone. For pur- THE BILL AND NEW SEC. 45D OF THE CODE) The 15-percent wage credit generally is ef- poses of the zero-percent capital gains rate, PRESENT LAW fective for qualifying wages paid after De- the D.C. Zone is defined to include all census Some tax incentives are available to tax- cember 31, 2001. With respect to the two addi- tracts within the District of Columbia where payers making investments and loans in low- tional Round I empowerment zones, however, the poverty rate is not less than 10 percent income communities. For example, tax in- the wage credit is effective for qualifying as determined on the basis of the 1990 Census centives are available to taxpayers that in- wages paid after December 31, 2004. (sec. 1400B(d)). vest in specialized small business investment The 30 new renewal zones must be des- EXPLANATION OF PROVISION companies licensed by the Small Business ignated by January 1, 2002, and the resulting The provision eliminates the 10-percent Administration to make loans to, or equity tax benefits will be available for the period poverty rate limitation for purposes of the investments in, small businesses owned by beginning January 1, 2002, and ending De- zero-percent capital gains rate. Thus, the persons who are socially or economically dis- cember 31, 2009. zero-percent capital gains rate applies to advantaged. B. FUNDING FOR ROUND II EMPOWERMENT capital gains from the sale of assets held EXPLANATION OF PROVISION ZONES (SEC. 116 OF THE BILL) more than five years attributable to certain The provision creates a new tax credit for The provision provides a one-time grant in qualifying businesses located in the District qualified equity investments made to ac- fiscal year 2001 of $5,000,000 for each of the 15 of Columbia. quire stock in a selected community devel- urban empowerment zones designated pursu- EFFECTIVE DATE opment entity (‘‘CDE’’). The maximum an- ant to the Taxpayer Relief Act of 1997, and The provision is effective for D.C. Zone nual amount of qualifying equity invest- $2,000,000 for each of the 5 rural empower- business stock and partnership interests ments is capped as follows: ment zones designated pursuant to the Tax- originally issued after, and D.C. Zone busi- payer Relief Act of 1997. ness property assets originally acquired by Calendar year Maximum qualifying equity The provision also provides a one-time the taxpayer after, December 31, 2000. investment grant $250,000 for each of the remaining 3. Gross Income Test for D.C. Zone Busi- 2002 ...... $1.0 billion Round I enterprise communities (i.e., those nesses (Sec. 123 of the Bill and Sec. 1400B of 2003–2006 ...... 1.5 billion per year that have not become empowerment zones). the Code) C. EXTENSION AND EXPANSION OF DISTRICT OF PRESENT LAW The amount of the new tax credit to the in- COLUMBIA ENTERPRISE ZONE (‘‘D.C. ZONE’’) A zero-percent capital gains rate applies to vestor (either the original purchaser or a subsequent holder) is (1) a five-percent credit 1. Extension of D.C. Zone (Sec. 121 of the Bill gain from the sale of certain qualified D.C. for the year in which the equity interest is and Secs. 1400 and 1400A of the Code) zone assets. In general, a D.C. Zone asset means stock or partnership interests held in, purchased from the CDE and the first two PRESENT LAW or tangible property held by, a D.C. Zone anniversary dates after the interest is pur- The 1997 Act designated certain economi- business. A D.C. Zone business generally re- chased from the CDE, and (2) a six-percent cally depressed census tracts within the Dis- fers to certain enterprise zone businesses credit on each anniversary date thereafter trict of Columbia as the District of Columbia within the D.C. Zone, except that 80 percent for the following four years. The taxpayer’s Enterprise Zone (the ‘‘D.C. Zone’’), within of the total gross income of the entity must basis in the investment is reduced by the which businesses and individual residents are be derived from the active conduct of the amount of the credit (other than for pur- eligible for special tax incentives. The D.C. business (sec. 1400B(c)(2)). poses of calculating the zero-percent capital Zone designation remains in effect for the EXPLANATION OF PROVISION gains rules and section 1202). The credit is period from January 1, 1998, through Decem- subject to the general business credit rules. The provision reduces the level of gross in- ber 31, 2002. In addition to the tax incentives A CDE is any domestic corporation or come needed to qualify as a D.C. Zone busi- available with respect to a Round I empower- partnership (1) whose primary mission is ness to 50 percent. ment zone (including a wage credit), the D.C. serving or providing investment capital for Zone also has a zero-percent capital gains EFFECTIVE DATE low-income communities or low-income per- rate that applies to gain from the sale of cer- The provision is effective for D.C. Zone sons, (2) that maintains accountability to tain qualified D.C. Zone assets acquired after business stock and partnership interest residents of low-income communities December 31, 1997 and held for more than five originally issued after, and D.C. Zone busi- through the representation of the residents years. ness property originally acquired by the tax- on governing or advisory boards of the CDE, With respect to the tax-exempt financing payer after, December 31, 2000. and (3) is certified by the Treasury Depart- incentives, the D.C. Zone generally is treated 4. Expansion of District of Columbia Home- ment as an eligible CDE. No later than 120 like a Round I empowerment zone; therefore, buyer Tax Credit (Sec. 124 of the Bill and days after enactment, the Treasury Depart- the issuance of such bonds is subject to the Sec. 1400C of the Code) ment will issue guidance that specifies objec- District of Columbia’s annual private activ- PRESENT LAW tive criteria to be used by the Treasury to ity bond volume limitation. However, the ag- First-time homebuyers of a principal resi- allocate the credits among eligible CDEs. In gregate face amount of all outstanding quali- dence in the District of Columbia are eligible allocating the credits, the Treasury Depart- fied enterprise zone facility bonds per quali- for a nonrefundable tax credit of up to $5,000 ment will give priority to entities with fied D.C. Zone business may not exceed $15 of the amount of the purchase price. The records of having successfully provided cap- million (rather than $3 million, as is the case $5,000 maximum credit applies both to indi- ital or technical assistance to disadvantaged for Round I empowerment zones). viduals and married couples. Married indi- businesses or communities, as well as to en- EXPLANATION OF PROVISION viduals filing separately can claim a max- tities that intend to invest substantially all imum credit of $2,500 each. The credit phases of the proceeds they receive from their in- The provision extends the D.C. Zone des- vestors in businesses in which persons unre- ignation through December 31, 2006. The pro- out for individual taxpayers with adjusted gross income between $70,000 and $90,000 lated to the CDE hold the majority equity vision also conforms the D.C. zone wage interest. credit to the wage credit for existing em- ($110,000-$130,000 for joint filers). For pur- poses of eligibility, ‘‘first-time homebuyer’’ If a CDE fails to sell equity interests to in- powerment zones, so that a 15-percent wage vestors up to the amount authorized within credit applies with respect to qualifying means any individual if such individual did not have a present ownership interest in a five years of the authorization, then the re- wages beginning in 2003 (and ending on De- maining authorization is canceled. The cember 31, 2006). principal residence in the District of Colum- bia in the one year period ending on the date Treasury Department can authorize another EFFECTIVE DATE of the purchase of the residence to which the CDE to issue equity interests for the unused The provision extending the designation is credit applies. The credit is scheduled to ex- portion. No authorization can be made after effective after the date of enactment. For pire for residences purchased after December 2013. A ‘‘qualified equity investment’’ is defined the D.C. Enterprise Zone, the 15-percent 31, 2001. as stock or a similar equity interest acquired wage credit is effective for qualifying wages EXPLANATION OF PROVISION paid after December 31, 2002. directly from a CDE in exchange for cash. The provision extends the first-time home- Substantially all of the investment proceeds 2. Extension of Zero-Percent Capital Gains buyer credit for two years, through Decem- must be used by the CDE to make ‘‘qualified Rate for D.C. Zone Assets (Sec. 122 of the ber 31, 2003. The provision also extends the low-income community investments.’’ Quali- Bill and Sec. 1400B of the Code) phase-out range for married individuals fil- fied low-income community investments in- PRESENT LAW ing a joint return so that it is twice that of clude: (1) capital or equity investments in, or Present law provides a zero-percent capital individuals. Thus, under the provision, the loans to, qualified active businesses located gains rate for capital gains from the sale of District of Columbia homebuyer credit is in low-income communities, (2) certain fi- certain qualified D.C. Zone assets held for phased out for joint filers with adjusted nancial counseling and other services speci- more than five years. In general, a ‘‘D.C. gross income between $140,000 and $180,000. fied in regulations to businesses and resi- Zone asset’’ means stock or partnership in- EFFECTIVE DATE dents in low-income communities, (3) the terests held in, or tangible assets held by, a The provision is effective for taxable years purchase from another CDE of any loan D.C. Zone business. A D.C. Zone business beginning after December 31, 2000. made by such entity that is a qualified low S9732 CONGRESSIONAL RECORD — SENATE October 3, 2000 income community investment, or (4) an eq- to claim credits under section 936 or section is an individual who is: (1) at least 18 years uity investment in, or loans to, another 30A for a 10-year transition period. Such of age; (2) a citizen or legal resident of the CDE. Treasury Department regulations will credits apply to possession business income, United States; and (3) a member of a house- provide guidance with respect to the ‘‘sub- which is derived from the active conduct of hold with family gross income of 60 percent stantially all’’ standard. a trade or business within a U.S. possession or less of national median gross income and The stock or equity interest cannot be re- or from the sale or exchange of substantially a net worth of $10,000 or less. deemed (or otherwise cashed out) by the CDE all of the assets that were used in such a Contributions to an IDA by eligible individuals for at least seven years. If the entity ceases trade or business. In contrast to the foreign Only eligible individuals are allowed to to be a qualified CDE during the seven-year tax credit, the Puerto Rico and possession contribute to an IDA. Contributions to IDAs period following the taxpayer’s investment, tax credit is granted whether or not the cor- by individuals are not deductible, and earn- or if the equity interest is redeemed by the poration pays income tax to the possession. ings on such contributions are includible in issuing CDE during that seven-year period, One of two alternative limitations is appli- income. then any credits claimed with respect to the cable to the amount of the credit attrib- Matching contributions equity interest are recaptured (with interest) utable to possession business income. Under The bill provides a maximum annual tax and no further credits are allowed. the economic activity limit, the amount of credit of $270 (90 percent of $300) to a finan- A ‘‘low-income community’’ is defined as the credit with respect to such income can- cial institution that makes matching con- census tracts with: (1) poverty rates of at not exceed the sum of a portion of the tax- tributions to the IDAs of individuals. This least 20 percent (based on the most recent payer’s wage and fringe benefit expenses and credit is available in each year that a match- depreciation allowances (plus, in certain census data), or (2) median family income ing contribution is made. An additional $100 cases, possession income taxes); beginning in which does not exceed 80 percent of the tax credit would be allowed for each account greater of metropolitan area income or 2002, the income eligible for the credit com- opened. The credit is for the costs incurred statewide median family income (for a non- puted under this limit generally is subject to to open and maintain the account, as well as metropolitan census tract, 80 percent of non- a cap based on the corporation’s pre-1996 pos- to provide financial education. The credits metropolitan statewide median family in- session business income adjusted for infla- could be claimed by the financial institution come). The Secretary also may designate tion. Under the alternative limit, the or its contractual affiliates. It is anticipated any area within any census tract as a ‘‘low amount of the credit is limited to the appli- that a financial institution may collaborate income community’’ provided that (1) the cable percentage (40 percent for 1998 and with one or more contractual affiliates, non- boundary of the area is continuous, (2) the thereafter) of the credit that would other- profits, or Indian tribes to carry out the IDA area (if it were a census tract) would satisfy wise be allowable with respect to possession program. Contractual affiliates who provide the poverty rate or median income require- business income; beginning in 1998, the in- matching funds should be eligible to receive ments set forth above within the targeted come eligible for the credit computed under the matching tax credit. area, and (3) an inadequate access to invest- this limit generally is subject to a cap based Matching contributions (and earnings ment capital exists in the area. on the corporation’s pre-1996 possession busi- thereon) are not includible in the gross in- A ‘‘qualified active business’’ is defined as ness income. Special rules apply in com- come of the eligible individual. a business which satisfies the following re- puting the credit with respect to operations If an individual withdraws his or her own quirements: (1) at least 50 percent of the in Guam, American Samoa, and the Com- IDA contributions (or earnings thereon) for a total gross income of the business is derived monwealth of the Northern Mariana Islands. purpose other than a qualified purpose, then from the active conduct of trade or business The credit expires for taxable years begin- the matching contribution attributable to activities in low-income communities; (2) a ning after December 31, 2005. such individual contribution is forfeited. substantial portion of the use of the tangible EXPLANATION OF PROVISION Matching contributions can be withdrawn property of such business is used within low- The bill modifies the credit computed only for the following qualified purposes: (1) income communities; (3) a substantial por- under the economic activity limit with re- certain educational expenses; (2) first-time tion of the services performed for such busi- spect to operations in Puerto Rico only. homebuyer expenses; (3) business start-up or ness by its employees is performed in low-in- First, the proposal expands the lines of busi- expansion purposes; and (4) qualified roll- come communities; and (4) less than 5 per- ness eligible under the credit to include new overs. cent of the average aggregate of unadjusted lines of business established in Puerto Rico Effect on means-tested programs bases of the property of such business is at- after December 31, 2000, and before January Any amounts in the IDA are not to be tributable to certain financial property or to 1, 2005 by existing credit claimants. These taken into account for certain Federal collectibles (other than collectibles held for ‘‘new opportunity credit’’ claimants are eli- means-tested programs. sale to customers). There is no requirement gible to claim credits in taxable years begin- EFFECTIVE DATE that employees of the business be residents ning before January 1, 2006. In addition, in- The tax credit provision is effective for of the low income community. come eligible for the credit computed under Rental of improved commercial real estate contributions to IDAs and matching con- the economic activity limitation is subject tributions made with respect to such IDAs located in a low-income community is a to the present-law income limitation. Also, qualified active business, regardless of the after December 31, 2001, and before January these ‘‘new opportunity credit’’ claimants 1, 2006. characteristics of the commercial tenants of are required to calculate their credit in each G. ADDITIONAL INCENTIVES the property. The purchase and holding of taxable year, but claim that amount of cred- 1. Exclusion of certain amounts received unimproved real estate is not a qualified ac- it over a five-year period (on a pro-rata under the National Health Service Corps tive business. In addition, a qualified active basis) beginning the year in which the credit Scholarship Program and the F. Edward business does not include (a) any business is earned. Hebert Armed Forces Health Professions consisting predominantly of the develop- In addition, for existing credit claimants, Scholarship and Financial Assistance Pro- ment or holding of intangibles for sale or li- the present-law limitation on income eligi- gram (sec. 171 of the bill and sec. 117 of the cense; or (b) operation of any facility de- ble for the credit for any taxable year is in- Code) scribed in sec. 144(c)(6)(B). A qualified active creased by the ratio of the average number business can include an organization that is of full-time employees of the taxpayer dur- PRESENT LAW organized on a non-profit basis. ing the taxable year to the average number The National Health Service Corps Schol- The General Accounting Office will audit of full-time employees of the taxpayer in arship Program (the ‘‘NHSC Scholarship and report to Congress by January 31, 2004 1995 and 1996. Program’’) and the F. Edward Hebert Armed (and again by January 31, 2007) on the new EFFECTIVE DATE Forces Health Professions Scholarship and markets program, including on all qualified Financial Assistance Program (the ‘‘Armed community development entities that re- The provision applies to taxable years be- Forces Scholarship Program’’) provide edu- ceive an allocation under the new markets ginning after December 31, 2000. cation awards to participants on condition tax credit. F. CREATION OF INDIVIDUAL DEVELOPMENT AC- that the participants provide certain serv- EFFECTIVE DATE COUNTS (SECS. 731–741 OF THE BILL AND NEW ices. In the case of the NHSC Scholarship The provision is effective for qualified in- SEC. 530A OF THE CODE) Program, the recipient of the scholarship is vestments made after December 31, 2001. PRESENT LAW obligated to provide medical services in a ge- ographic area (or to an underserved popu- E. MODIFICATION OF PUERTO RICO ECONOMIC There are no tax benefits to encourage fi- lation group or designated facility) identi- ACTIVITY TAX CREDIT (SEC. 141 OF THE BILL nancial institutions to match savings of low- fied by the Public Health Service as having AND SEC. 30A OF THE CODE) income individuals. a shortage of health-care professionals. In PRESENT LAW EXPLANATION OF PROVISION the case of the Armed Forces Scholarship The Small Business Job Protection Act of In general Program, the recipient of the scholarship is 1996 generally repealed the Puerto Rico and The bill creates individual development ac- obligated to serve a certain number of years possession tax credit. However, certain do- counts (‘‘IDAs’’) to which eligible individuals in the military at an armed forces medical mestic corporations that had active business can contribute, annually, the lesser of: (1) facility. Because the recipients are required operations in Puerto Rico or another U.S. $2,000; or (2) the individual’s taxable com- to perform services in exchange for the edu- possession on October 13, 1995, may continue pensation for the year. An eligible individual cation awards, the awards used to pay higher October 3, 2000 CONGRESSIONAL RECORD — SENATE S9733 education expenses are taxable income to where its educational activities are regu- An eligible child is an individual (1) who the recipient. larly carried on; and (2) tax-exempt chari- has not attained age 18 or (2) who is phys- Section 117 excludes from gross income table organizations that are organized pri- ically or mentally incapable of caring for amounts received as a qualified scholarship marily for purposes of supporting elemen- himself or herself. After December 31, 2001, by an individual who is a candidate for a de- tary and secondary education. A private the credit will be available only for domestic gree and used for tuition and fees required foundation also is an eligible donee, provided special needs adoptions. for the enrollment or attendance (or for fees, that, within 30 days after receipt of the con- No credit is allowed for expenses incurred books, supplies, and equipment required for tribution, the private foundation contributes (1) in violation of State or Federal law, (2) in courses of instruction) at a primary, sec- the property to an eligible donee described carrying out any surrogate parenting ar- ondary, or post-secondary educational insti- above. rangement, (3) in connection with the adop- tution. The tax-free treatment provided by Qualified contributions are limited to gifts tion of a child of the taxpayer’s spouse, (4) section 117 does not extend to scholarship made no later than two years after the date that are reimbursed under an employer adop- amounts covering regular living expenses, the taxpayer acquired or substantially com- tion assistance program or otherwise, or (5) such as room and board. In addition to the pleted the construction of the donated prop- for a foreign adoption that is not finalized. exclusion for qualified scholarships, section erty. In addition, the original use of the do- The credit is phased out ratably for tax- 117 provides an exclusion from gross income nated property must commence with the payers with modified AGI above $75,000, and for qualified tuition reductions for certain donor or the donee. Accordingly, qualified is fully phased out at $115,000 of modified education provided to employees (and their contributions generally are limited to prop- AGI. For these purposes modified AGI is spouses and dependents) of certain edu- erty that is no more than two years old. computed by increasing the taxpayer’s AGI cational organizations. Such donated property could be computer by the amount otherwise excluded from Section 117(c) specifically provides that technology or equipment that is inventory gross income under Code sections 911, 931, or the exclusion for qualified scholarships and or depreciable trade or business property in 933. qualified tuition reductions does not apply the hands of the donor. EXPLANATION OF PROVISION to any amount received by a student that Donee organizations are not permitted to The bill extends the adoption credit for the represents payment for teaching, research, transfer the donated property for money or adoption of non-special needs children for or other services by the student required as services (e.g., a donee organization cannot two years through December 31, 2003. a condition for receiving the scholarship or sell the computers). However, a donee orga- EFFECTIVE DATE tuition reduction. nization may transfer the donated property The provision is effective on the date of en- Section 134 provides that any ‘‘qualified in furtherance of its exempt purposes and be actment. military benefit,’’ which includes any allow- reimbursed for shipping, installation, and 4. Tax treatment of Alaska Native Settle- ance, is excluded from gross income if re- transfer costs. For example, if a corporation ment Trusts (Sec. 174 of the Bill and New ceived by a member or former member of the contributes computers to a charity that sub- Secs. 646 and 6039H of the Code) uniformed services if such benefit was ex- sequently distributes the computers to sev- cludable from gross income on September 9, eral elementary schools in a given area, the PRESENT LAW 1986. charity could be reimbursed by the elemen- An Alaska Native Settlement Corporation (‘‘ANC’’) may establish a Settlement Trust EXPLANATION OF PROVISION tary schools for shipping, transfer, and in- (‘‘Trust’’) under section 39 of the Alaska Na- The provision provides that amounts re- stallation costs. The special treatment applies only to do- tive Claims Settlement Act (‘‘ANCSA’’) and ceived by an individual under the NHSC transfer money or other property to such Scholarship Program or the Armed Forces nations made by C corporations. S corpora- tions, personal holding companies, and serv- Trust for the benefit of beneficiaries who Scholarship Program are eligible for tax-free constitute all or a class of the shareholders treatment as qualified scholarships under ice organizations are not eligible donors. The provision is scheduled to expire for of the ANC, to promote the health, education section 117, without regard to any service ob- contributions made in taxable years begin- and welfare of the beneficiaries and preserve ligation by the recipient. ning after December 31, 2000. the heritage and culture of Alaska Natives. EFFECTIVE DATE With certain exceptions, once an ANC has EXPLANATION OF PROVISION The provision is effective for education made a conveyance to a Trust, the assets awards received after December 31, 1993. The bill extends the current enhanced de- conveyed shall not be subject to attachment, duction for donations of computer tech- distraint, or sale or execution of judgment, 2. Extension and Modification of Enhanced nology and equipment through December 31, except with respect to the lawful debts and Deduction for Corporate Donations of Com- 2003. In addition, the enhanced deduction is obligations of the Trust. puter Technology (Sec. 172 of the Bill and expanded to include donations to public li- The Internal Revenue Service has indi- Sec. 170(e)(6) of the Code) braries. cated that contributions to a Trust con- PRESENT LAW EFFECTIVE DATE stitute distributions to the beneficiary- shareholders at the time of the contribution The maximum charitable contribution de- The provision is effective upon the date of and are treated as dividends to the extent of duction that may be claimed by a corpora- enactment. tion for any one taxable year is limited to 10 earnings and profits as provided under sec- percent of the corporation’s taxable income 3. Extension of the Adoption Tax Credit (Sec. tion 301 of the Code. The Trust and its bene- for that year (disregarding charitable con- 173 of the Bill and Sec. 23 of the Code) ficiaries are taxed in accordance with trust tributions and with certain other modifica- PRESENT LAW rules. tions) (sec. 170(b)(2)). Corporations also are Taxpayers are entitled to a maximum non- EXPLANATION OF PROVISION subject to certain limitations based on the refundable credit against income tax liabil- An Alaska Native Corporation may estab- type of property contributed. In the case of ity of $5,000 per child for qualified adoption lish a Trust under section 39 of ANCSA and a charitable contribution of short-term gain expenses paid or incurred by the taxpayer if the Trust makes an election for its first property, inventory, or other ordinary in- (sec. 23). In the case of a special needs adop- taxable year ending after the date of enact- come property, the amount of the deduction tion, the maximum credit amount is $6,000 ment of the proposal, no amount will be in- generally is limited to the taxpayer’s basis ($5,000 in the case of a foreign special needs cluded in the gross income of a beneficiary of (generally, cost) in the property. However, adoption). A special needs child is a child such Trust by reason of a contribution to the special rules in the Code provide an aug- who the State has determined: (1) cannot or Trust. In addition, unless the electing Trust mented deduction for certain corporate con- should not be returned to the home of the fails to meet the transferability require- tributions. Under these special rules, the birth parents, and (2) has a specific factor or ments of the provision, income of the Trust, amount of the augmented deduction is equal condition because of which the child cannot whether accumulated or distributed, will be to the lesser of (1) the basis of the donated be placed with adoptive parents without taxed only to the Trust (and not to bene- property plus one-half of the amount of ordi- adoption assistance. The adoption of a child ficiaries) at the lowest individual tax rates nary income that would have been realized if who is not a citizen or a resident of the of 15 percent for ordinary income (and the the property had been sold, or (2) twice the United States is a foreign adoption. capital gains rate applicable to individuals basis of the donated property. Qualified adoption expenses are reasonable subject to such 15 percent rate), rather than Section 170(e)(6) allows corporate tax- and necessary adoption fees, court costs, at- at the higher rates generally applicable to payers an augmented deduction for qualified torneys’ fees, and other expenses that are di- trusts or to higher tax bracket beneficiaries. contributions of computer technology and rectly related to the legal adoption of an eli- The earnings and profits of the ANC will equipment (i.e., computer software, com- gible child. All reasonable and necessary ex- not be reduced by the amount of contribu- puter or peripheral equipment, and fiber penses required by a State as a condition of tions to the electing Trust at the time of the optic cable related to computer use) to be adoption are qualified adoption expenses. contributions. However, the ANC earnings used within the United States for edu- Otherwise qualified adoption expenses paid and profits will be reduced (up to the amount cational purposes in grades K–12. Eligible or incurred in one taxable year are not taken of the contributions) as distributions are donees are: (1) any educational organization into account for purposes of the credit until thereafter made by the electing Trust that that normally maintains a regular faculty the next taxable year unless the expenses are would exceed the Trusts’s total undistrib- and curriculum and has a regularly enrolled paid or incurred in the year the adoption be- uted net income (less taxes paid) plus tax-ex- body of pupils in attendance at the place comes final. empt income for all prior years during which S9734 CONGRESSIONAL RECORD — SENATE October 3, 2000 an election is in effect plus for the current after the date of enactment. Under a transi- later than the year in which the building is year, computed under Subchapter J. In addi- tion rule, service performed in the employ of placed in service; and (3) carryover alloca- tion, such distributions that exceed such an Indian tribe is not treated as employment tions. amounts are to be reported and taxed to for FUTA purposes if: (1) it is service which Each State annually receives low-income beneficiaries as if distributed by the ANC in is performed before the date of enactment housing credit authority equal to $1.25 per the year of the distribution by the electing and with respect to which FUTA tax has not State resident for allocation to qualified Trust, and will be treated as dividends to been paid; and (2) such Indian tribe reim- low-income projects. In addition to this $1.25 beneficiaries to the extent the ANC then has burses a State unemployment fund for unem- per resident amount, each State’s ‘‘housing current or accumulated earnings and profits. ployment benefits paid for service attrib- credit ceiling’’ includes the following The fiduciary of an electing Trust must re- utable to such tribe for such period. amounts: (1) the unused State housing credit port to the IRS, with the Trust tax return, 6. Additional Funding for the Social Services ceiling (if any) of such State for the pre- the amount of distributions to each bene- Block Grant (Sec. 176 of the Bill) ceding calendar year; (2) the amount of the ficiary, and the tax treatment to the bene- State housing credit ceiling (if any) returned The provision amends Section 2003(c) of in the calendar year; and (3) the amount of ficiary of such distributions under the provi- Title XX of the Social Security Act and pro- sion (either as exempt from tax to the bene- the national pool (if any) allocated to such vides an additional one-time amount of State by the Treasury Department. ficiary, or as a distribution deemed made by $700,000,000 for fiscal year 2001. the ANC). The electing Trust must also fur- The national pool consists of States’ un- nish such information to the ANC. II. TAX INCENTIVES FOR AFFORDABLE used housing credit carryovers. For each In the case of distributions that are treat- HOUSING State, the unused housing credit carryover ed as if made by the ANC, as described above, A. INCREASE LOW-INCOME HOUSING TAX CRED- for a calendar year consists of the excess (if the ANC must then report such amounts to IT PER CAPITA AMOUNT (SECS. 201 AND 202 any) of the unused State housing credit ceil- the beneficiaries and must indicate whether OF THE BILL AND SEC. 42 OF THE CODE) ing for such year over the excess (if any) of the aggregate housing credit dollar amount they are dividends or not, in accordance with PRESENT LAW the earnings and profits of the ANC. The re- allocated for such year over the sum of $1.25 In general, a maximum 70-percent present per resident and the credit returns for such porting thus required by an electing Trust value tax credit, claimed over a 10-year pe- year. The amounts in the national pool are will be in lieu of, and will satisfy, the report- riod is allowed for the cost of rental housing allocated only to a State which, with respect ing requirements of section 6034A (and such occupied by tenants having incomes below to the previous calendar year allocated its other reporting requirements as the Sec- specified levels. The credit percentage for entire housing credit ceiling for the pre- retary of the Treasury may deem appro- newly constructed or substantially rehabili- ceding calendar year, and requested a share priate). tated housing that is not Federally sub- in the national pool not later than May 1, of If the beneficial interests in the electing sidized is adjusted monthly by the Internal the calendar year. The national pool alloca- Trust or the shares of the ANC may be sold Revenue Service so that the 10 annual in- tion to qualified States is made on a pro rata or exchanged to a person in a manner that stallments have a present value of 70 percent basis equivalent to the fraction that a would not be permitted under ANCSA if the of the total qualified expenditures. The cred- State’s population enjoys relative to the interests were Settlement Common Stock it percentage for new substantially rehabili- total population of all qualified States for (generally, to a person other than an Alaska tated housing that is Federally subsidized that year. Native), then all assets of the Trust that had and for existing housing that is substantially The present-law stacking rule provides not been distributed as of the beginning of rehabilitated is calculated to have a present that a State is treated as using its annual al- that taxable year of the Trust are taxed to value of 30 percent of total qualified expendi- location of credit authority ($1.25 per State the extent they would be if they were dis- tures. resident) and any returns during the cal- tributed at that time. Thereafter, the Trust To claim low-income housing credits, endar year followed by any unused credits and its beneficiaries are generally subject to project owners must receive an allocation of carried forward from the preceding year’s the rules of subchapter J and to the gen- credit from a State or local housing credit credit ceiling and finally any applicable allo- erally applicable trust income tax rates. agency. However, no allocation is required cations from the National pool. EFFECTIVE DATE for buildings at least 50 percent financed EXPLANATION OF PROVISION The provision is effective for taxable years with the proceeds of tax-exempt bonds that The bill increases the annual State credit of Settlement Trusts, their beneficiaries, received an allocation pursuant to the pri- caps from $1.25 to $1.75 per resident begin- and sponsoring Alaska Native Corporations vate activity bond volume limitation of Code ning in 2001. Also beginning in 2001, the per ending after the date of enactment, and to section 146. Such projects must, however, capita cap is modified so that small popu- contributions made to electing Settlement satisfy the requirements for allocation under lation states are given a minimum of $2 mil- Trusts during such year and thereafter. the State’s qualified allocation plan and lion of annual credit cap. The $1.75 per capita meet other requirements. 5. Treatment of Indian Tribes as Non-Profit credit cap and the $2 million amount are in- A building generally must be placed in Organizations and State or Local Govern- dexed for inflation beginning in calendar service during the calendar year in which it ments for Purposes of the Federal Unem- year 2002. receives a credit allocation. However, a ployment Tax (‘‘FUTA’’) (Sec. 175 of the The bill also makes two programmatic housing credit agency can make a binding Bill and Sec. 3306 of the Code) changes to the credit. First, the bill modifies commitment, not later than the year in the stacking rule so that each State is treat- PRESENT LAW which the building is placed in service, to al- ed as using its allocation of the unused State Present law imposes a net tax on employ- locate a specified credit dollar amount to housing credit ceiling (if any) from the pre- ers equal to 0.8 percent of the first $7,000 paid such building beginning in a specified later ceding calendar before the current year’s al- annually to each employee. The current year. In addition, a project can receive a location of credit (including any credits re- gross FUTA tax is 6.2 percent, but employers ‘‘carryover allocation’’ if the taxpayer’s turned to the State) and then finally any Na- in States meeting certain requirements and basis in the project as of the close of the cal- tional pool allocations. Second, the bill pro- having no delinquent loans are eligible for a endar year the allocation is made is more vides that assistance received under the Na- 5.4 percent credit making the net Federal tax than 10 percent of the taxpayer’s reasonably tive American Housing Assistance and Self- rate 0.8 percent. Both non-profit organiza- expected basis in the project, and the build- Determination Act of 1986 is not taken into tions and State and local governments are ing is placed in service not later than the account in determining whether a building is not required to pay FUTA taxes. Instead close of the second calendar year following Federally subsidized for purposes of the cred- they may elect to reimburse the unemploy- the calendar year in which the allocation is it. ment compensation system for unemploy- made. For purposes of the 10-percent test, EFFECTIVE DATE ment compensation benefits actually paid to basis means the taxpayer’s adjusted basis in The provision is effective for calendar their former employees. Generally, Indian land and depreciable real property, whether years beginning after December 31, 2000 and tribes are not eligible for the reimbursement or not these amounts are includible in eligi- buildings placed-in-service after such date in treatment allowable to non-profit organiza- ble basis. Finally, an allocation of credit for the case of projects that also receive financ- tions and State and local governments. increases in qualified basis may occur in ing with proceeds of tax-exempt bonds which years subsequent to the year the project is EXPLANATION OF PROVISION are issued after such date subject to the pri- placed in service. The bill provides that an Indian tribe (in- vate activity bond volume limit. Authority to allocate credits remains at cluding any subdivision, subsidiary, or busi- the State (as opposed to local) government B. TAX CREDIT FOR RENOVATING HISTORIC ness enterprise chartered and wholly owned level unless State law provides otherwise. HOMES (SEC. 211 OF THE BILL AND NEW SEC. by an Indian tribe) is treated like a non-prof- Generally, credits may be allocated only 25B OF THE CODE) it organization or State or local government from volume authority arising during the PRESENT LAW for FUTA purposes (i.e., given an election to calendar year in which the building is placed Present law provides an income tax credit choose the reimbursement treatment). in service, except in the case of: (1) credits for certain expenditures incurred in rehabili- EFFECTIVE DATE claimed on additions to qualified basis; (2) tating certified historic structures and cer- The provision generally is effective with credits allocated in a later year pursuant to tain nonresidential buildings placed in serv- respect to service performed beginning on or an earlier binding commitment made no ice before 1936 (sec. 47). The amount of the October 3, 2000 CONGRESSIONAL RECORD — SENATE S9735 credit is determined by multiplying the ap- Alternatively, a taxpayer may elect to re- greater of (1) 90 percent of the average area plicable rehabilitation percentage by the ceive a historic rehabilitation mortgage purchase price; or (2) 3.5 times the applicable basis of the property that is attributable to credit certificate in lieu of the credit other- median family income. The applicable me- qualified rehabilitation expenditures. The wise allowable. A historic rehabilitation dian family income is defined as under the applicable rehabilitation percentage is 20 mortgage credit certificate may be trans- present-law QMB income restriction. percent for certified historic structures and ferred to a lending institution in exchange EFFECTIVE DATE 10 percent for qualified rehabilitated build- for which the lending institution provides The provision is effective for bonds issued ings (other than certified historic structures) the taxpayer with a reduction in interest after the date of enactment. that were originally placed in service before rate on a mortgage on a qualifying struc- 2. Mortgage Financing for Residences Lo- 1936. ture. The lending institution would then cated in Presidentially Declared Disaster A nonresidential building is eligible for the claim the allowable credits against its tax li- Areas (Sec. 232 of the Bill and Sec. 143 of 10-percent credit only if the building is sub- ability. In the case of a targeted area or en- the Code) stantially rehabilitated and a specific por- terprise community or empowerment zone, tion of the existing structure of the building the taxpayer may elect to allocate all or a PRESENT LAW is retained in place upon completion of the portion of the mortgage credit certificate to Qualified mortgage bonds are private ac- rehabilitation. A residential or nonresiden- reduce the down payment required for pur- tivity tax-exempt bonds issued by States and tial building is eligible for the 20-percent chase of the structure. local governments acting as conduits to pro- credit that applies to certified historic struc- If a taxpayer ceases to maintain the struc- vide mortgage loans to first-time home buy- tures only if the building is substantially re- ture as his or her personal residence within ers who satisfy specified income limits and habilitated (as determined under the eligi- five years from the date of the rehabilita- who purchase homes that cost less than stat- bility rules for the 10-percent credit). In ad- tion, the credit would be recaptured on a pro utory maximums. The income and purchase dition, the building must be listed in the Na- rata basis. price limits are increased for homes pur- tional Register or the building must be lo- chased in economically distressed areas, and EFFECTIVE DATE a portion of loans made in such areas is ex- cated in a registered historic district and The provision is effective for expenditures must be certified by the Secretary of the In- empt from some requirements. paid or incurred beginning after December Present law waives the three buyer tar- terior as being of historical significance to 31, 2001. geting requirements (the first-time home- the district. C. EXCLUSION FROM GROSS INCOME FOR CER- buyer, purchase price, and income limit re- EXPLANATION OF PROVISION TAIN FORGIVEN MORTGAGE OBLIGATIONS quirements) for a portion of the loans made The bill permits a taxpayer to claim a 20- (SEC. 221 OF THE BILL AND SEC. 108 OF THE with proceeds of a qualified mortgage bond percent credit for qualified rehabilitation ex- CODE) issue if the loans are made to finance homes penditures made with respect to a qualified in statutorily prescribed economically dis- PRESENT LAW historic home which the taxpayer subse- tressed areas. quently occupies as his or her principal resi- Gross income includes all income from For bonds issued during 1997 and 1998, a dence for at least five years. The total credit whatever source derived, including income special exception exempted loans made in which can be claimed by the taxpayer is lim- from the discharge of indebtedness. However, Presidentially declared disaster areas within ited to $20,000. Any eligible credit not gross income does not include discharge of two years of the declaration from the first- claimed by the taxpayer in the year in which indebtedness income if: (1) the discharge oc- time homebuyer limit. In addition, the more the qualified rehabilitation expenditures are curs in a Title 11 case; (2) the discharge oc- liberal income and purchase price rules ap- made may be carried forward to each of the curs when the taxpayer is insolvent; (3) the plicable to economically distressed areas ap- succeeding 10 years. indebtedness discharged is qualified farm in- plied to such loans. There was no require- The bill applies to (1) structures listed in debtedness; or (4) except in the case of a C ment that the specially treated loans be the National Register; (2) structures located corporation, the indebtedness discharged is made to repair or replace housing damaged in a registered national, State, or local his- qualified real property business indebted- or destroyed by the disaster. toric district, and certified by the Secretary ness. No exclusion is provided under present EXPLANATION OF PROVISION law for qualified residential indebtedness. of the Interior as being of historic signifi- The bill reinstates, with modifications, the cance to the district, but only if the median EXPLANATION OF PROVISION prior-law exception for certain qualified income of the census tract within which the In the case of an individual taxpayer, the mortgage bond financed loans in Presi- building is located is less than twice the bill provides an exclusion from discharge of dentially declared disaster areas. First, the State median income; (3) any structure des- indebtedness income to the extent such in- bill: (1) allows loans for replacement housing ignated as being of historic significance come is attributable to the sale of real prop- for housing destroyed in the disaster without under a State or local statute, if such stat- erty securing qualified residential indebted- regard to the first-time homebuyer require- ute is certified by the Secretary of the Inte- ness. Qualified residential indebtedness is de- ment; and (2) increases the borrower income rior as achieving the purpose of preserving fined as indebtedness incurred or assumed by and house purchase price requirements to and rehabilitating buildings of historic sig- the taxpayer for the acquisition, construc- those that apply in targeted areas of eco- nificance. tion, reconstruction, or substantial improve- nomic distress. Second, the bill increases the A building generally is considered substan- ment of the taxpayer’s residence and which per-borrower ‘‘home improvement loan’’ tially rehabilitated if the qualified rehabili- is secured by such residence. The taxpayer maximum from $15,000 to $100,000 and ex- tation expenditures incurred during a 24- may elect to have this exclusion apply. The tends the more liberal borrower income lim- month measuring period exceed the greater exclusion does not apply to qualified farm its for targeted areas to loans for repair of of (1) the adjusted basis of the building as of indebtedness or qualified real property busi- housing damaged by the disaster. In both the later of the first day of the 24-month pe- ness indebtedness. cases, the exception applies only to loans riod or the beginning of the taxpayer’s hold- EFFECTIVE DATE made during the two-year period after the ing period for the building, or (2) $5,000. Only area was declared a qualified disaster area. A The provision is effective for discharges of the $5,000 expenditure requirement applies in qualified disaster area is defined as an area indebtedness after the date of enactment. the case of structures (1) in empowerment determined by the President (1) to warrant zones, (2) in enterprise communities, (3) in D. MORTGAGE REVENUE BONDS assistance under the Robert T. Stafford Dis- census tracts in which 70 percent of families 1. Increase in Purchase Price Limitation aster Relief and Emergency Assistance Act have income which is 80 percent or less of Under Mortgage Subsidy Bond Rules Based and (2) with respect to which the Federal the State median family income, and (4) in on Median Family Income (Sec. 231 of the share of disaster payments exceeds 75 per- areas of chronic distress as designated by the Bill and Sec. 143 of the Code) cent. State and approved by the Secretary of PRESENT LAW EFFECTIVE DATE Housing and Urban Development. In addi- Qualified mortgage bonds (QMBs) are tax- The provision is effective for bonds issued tion, for all structures, at least five percent exempt bonds, the proceeds of which gen- after December 31, 2000. of the rehabilitation expenditures must to be erally must be used to make mortgage loans E. PROVIDE TAX EXEMPTION FOR ORGANIZA- allocable to the exterior of the structure. to first-time homebuyers. The recipients of TIONS CREATED BY A STATE TO PROVIDE To qualify for the credit, the rehabilitation QMB-financed loans must meet purchase PROPERTY AND CASUALTY INSURANCE COV- must be certified by a State or local govern- price, income, and other restrictions. Gen- ERAGE FOR PROPERTY FOR WHICH SUCH COV- ment subject to conditions specified by the erally, the purchase price of an assisted ERAGE IS OTHERWISE UNAVAILABLE (SEC. 241 Secretary of the Interior. home may not exceed 90 percent (110 percent OF THE BILL AND NEW SEC. 501(C)(28) OF THE A taxpayer who purchases a structure on in targeted areas) of the average area pur- CODE) which qualified rehabilitation expenditures chase price. have been made may claim credit for such PRESENT LAW expenditures if the taxpayer is the first pur- EXPLANATION OF PROVISION In general chaser of the structure within five years of The bill modifies the purchase price rule A life insurance company is subject to tax the date the rehabilitation was completed for QMB financing. Specifically, QMB financ- on its life insurance company taxable in- and if no credit was allowed to the seller ing is allowable to qualified residences the come, which is its life insurance income re- with respect to the qualified expenditures. purchase price of which does not exceed the duced by life insurance deductions (sec. 801). S9736 CONGRESSIONAL RECORD — SENATE October 3, 2000 Similarly, a property and casualty insurance exclusively to reimburse its members for written by the association, purchase reinsur- company is subject to tax on its taxable in- workers’ compensation insurance losses, and ance covering losses under such policies, or come, which is determined as the sum of its that satisfies certain other conditions. A to support governmental programs to pre- underwriting income and investment income State must require that the membership of pare for or mitigate the effects of natural (as well as gains and other income items) the organization consist of all persons who catastrophic events. The provision requires (sec. 831). Present law provides that the term issue insurance covering workers’ compensa- that the State law governing the association ‘‘corporation’’ includes an insurance com- tion losses in such State, and all persons and permit the association to levy assessments pany (sec. 7701(a)(3)). governmental entities who self-insure on insurance companies authorized to sell In general, the Internal Revenue Service against such losses. In addition, the organi- property and casualty insurance in the (‘‘IRS’’) takes the position that organiza- zation must operate as a nonprofit organiza- State, or on property and casualty insurance tions that provide insurance for their mem- tion by returning surplus income to mem- policyholders with insurable interests in bers or other individuals are not considered bers or to workers’ compensation policy- property located in the State to fund deficits to be engaged in a tax-exempt activity. The holders on a periodic basis and by reducing of the association, including the creation of IRS maintains that such insurance activity initial premiums in anticipation of invest- reserves. The provision requires that the is either (1) a regular business of a kind ordi- ment income. plan of operation of the association be sub- narily carried on for profit, or (2) an econ- State workmen’s compensation act companies ject to approval by the chief executive offi- omy or convenience in the conduct of mem- Section 501(c)(27)(B) provides tax-exempt cer or other official of the State, by the bers’ businesses because it relieves the mem- status for any organization that is created State legislature, or both. In addition, the bers from obtaining insurance on an indi- by State law, and organized and operated ex- provision requires that the assets of the as- vidual basis. clusively to provide workmen’s compensa- sociation revert upon dissolution to the Certain insurance risk pools have qualified tion insurance and related coverage that is State, the State’s designee, or an entity des- for tax exemption under Code section incidental to workmen’s compensation in- ignated by the State law governing the asso- 501(c)(6). In general, these organizations (1) surance, and that meets certain additional ciation, or that State law not permit the dis- assign any insurance policies and adminis- requirements. The workmen’s compensation solution of the association. trative functions to their member organiza- insurance must be required by State law, or The provision provides a special rule in the tions (although they may reimburse their be insurance with respect to which State law case of any entity or fund created before members for amounts paid and expenses); (2) provides significant disincentives if it is not January 1, 1999, pursuant to State law and serve an important common business inter- purchased by an employer (such as loss of ex- organized and operated exclusively to re- est of their members; and (3) must be mem- clusive remedy or forfeiture of affirmative ceive, hold, and invest remittances from an bership organizations financed, at least in defenses such as contributory negligence). association exempt from tax under the provi- part, by membership dues. The organization must provide workmen’s sion, to make disbursements to pay claims State insurance risk pools may also qual- compensation to any employer in the State on insurance contracts issued by the associa- ify for tax exempt status under section (for employees in the State or temporarily tion, and to make disbursements to support 501(c)(4) as a social welfare organization or assigned out-of-State) seeking such insur- governmental programs to prepare for or under section 115 as serving an essential gov- ance and meeting other reasonable require- mitigate the effects of natural catastrophic ernmental function of a State. In seeking ments. The State must either extend its full events. The special rule provides that the en- qualification under section 501(c)(4), insur- faith and credit to the initial debt of the or- tity or fund may elect to be disregarded as a ance organizations generally are constrained ganization or provide the initial operating separate entity and be treated as part of the by the restrictions on the provision of ‘‘com- capital of such organization. For this pur- association exempt from tax under the provi- mercial-type insurance’’ contained in section pose, the initial operating capital can be pro- sion, from which it receives such remit- 501(m). Section 115 generally provides that vided by providing the proceeds of bonds tances. The election is required to be made gross income does not include income de- issued by a State authority; the bonds may no later than 30 days following the date on rived from the exercise of any essential gov- be repaid through exercise of the State’s tax- which the association is determined to be ex- ernmental function or accruing to a State or ing authority, for example. For periods after empt from tax under the provision, and any political subdivision thereof. the date of enactment, either the assets of would be effective as of the effective date of Certain specific provisions provide tax-ex- the organization must revert to the State that determination. empt status to organizations meeting statu- upon dissolution, or State law must not per- An organization described in the provision tory requirements. mit the dissolution of the organization ab- is treated as having unrelated business tax- Health coverage for high-risk individuals sent an act of the State legislature. Should able income in the amount of its taxable in- Section 501(c)(26) provides tax-exempt sta- dissolution of the organization become per- come (computed as if the organization were tus to any membership organization that is missible under applicable State law, then the not exempt from tax under the proposal), if established by a State exclusively to provide requirement that the assets of the organiza- at the end of the immediately preceding tax- coverage for medical care on a nonprofit tion revert to the State upon dissolution ap- able year, the organization’s net equity ex- basis to certain high-risk individuals, pro- plies. Finally, the majority of the board of ceeded 15 percent of the total coverage in vided certain criteria are satisfied. The orga- directors (or comparable oversight body) of force under insurance contracts issued by nization may provide coverage for medical the organization must be appointed by an of- the organization and outstanding at the end care either by issuing insurance itself or by ficial of the executive branch of the State or of that preceding year. entering into an arrangement with a health by the State legislature, or by both. Under the provision, no income or gain is maintenance organization (‘‘HMO’’). EXPLANATION OF PROVISION recognized solely as a result of the change in status to that of an association exempt from High-risk individuals eligible to receive The provision provides tax-exempt status tax under the provision. medical care coverage from the organization for any association created before January 1, must be residents of the State who, due to a 1999, by State law and organized and oper- EFFECTIVE DATE pre-existing medical condition, are unable to ated exclusively to provide property and cas- The provision is effective for taxable years obtain health coverage for such condition ualty insurance coverage for property lo- beginning after December 31, 2000. No infer- through insurance or an HMO, or are able to cated within the State for which the State ence is intended as to the tax status under acquire such coverage only at a rate that is has determined that coverage in the author- present law of associations described in the substantially higher than the rate charged ized insurance market is limited or unavail- provision. for such coverage by the organization. The able at reasonable rates, provided certain re- State must determine the composition of III. TAX INCENTIVES FOR URBAN AND quirements are met. RURAL INFRASTRUCTURE membership in the organization. For exam- Under the provision, no part of the net A. INCREASE STATE VOLUME LIMITS ON TAX- ple, a State could mandate that all organiza- earnings of the association may inure to the EXEMPT PRIVATE ACTIVITY BONDS (SEC. 301 tions that are subject to insurance regula- benefit of any private shareholder or indi- OF THE BILL AND SEC. 146 OF THE CODE) tion by the State must be members of the or- vidual. Except as provided in the case of dis- ganization. solution, no part of the assets of the associa- PRESENT LAW The provision further requires the State or tion may be used for, or diverted to, any pur- Interest on bonds issued by States and members of the organization to fund the li- pose other than: (1) to satisfy, in whole or in local governments is excluded from income if abilities of the organization to the extent part, the liability of the association for, or the proceeds of the bonds are used to finance that premiums charged to eligible individ- with respect to, claims made on policies activities conducted and paid for by the gov- uals are insufficient to cover such liabilities. written by the association; (2) to invest in ernmental units (sec. 103). Interest on bonds Finally, no part of the net earnings of the or- investments authorized by applicable law; (3) issued by these governmental units to fi- ganization can inure to the benefit of any to pay reasonable and necessary administra- nance activities carried out and paid for by private shareholder or individual. tion expenses in connection with the estab- private persons (‘‘private activity bonds’’) is Workers’ compensation reinsurance organiza- lishment and operation of the association taxable unless the activities are specified in tions and the processing of claims against the as- the Internal Revenue Code. Private activity Section 501(c)(27)(A) provides tax-exempt sociation; or (4) to make remittances pursu- bonds on which interest may be tax-exempt status to any membership organization that ant to State law to be used by the State to include bonds for privately operated trans- is established by a State before June 1, 1996, provide for the payment of claims on policies portation facilities (airports, docks and October 3, 2000 CONGRESSIONAL RECORD — SENATE S9737 wharves, mass transit, and high speed rail fa- EXPLANATION OF PROVISION which the subscriber is located. In the case cilities), privately owned and/or provided The bill extends the expiration date for eli- of a commercial mobile service carrier, municipal services (water, sewer, solid waste gible expenditures to include those paid or qualifying equipment is only that equipment disposal, and certain electric and heating fa- incurred before January 1, 2004. that extends from the customer side of a mo- cilities), economic development (small man- In addition, the bill eliminates the tar- bile telephone switching office to a trans- ufacturing facilities and redevelopment in geted area requirement, thereby, expanding mission/reception antenna (including the an- economically depressed areas), and certain eligible sites to include any site containing tenna) of the subscriber. In the case of a social programs (low-income rental housing, (or potentially containing) a hazardous sub- cable operator or open video system oper- qualified mortgage bonds, student loan stance that is certified by the appropriate ator, qualifying equipment is only that bonds, and exempt activities of charitable State environmental agency. However, ex- equipment that extends from the customer organizations described in sec. 501(c)(3)). penditures undertaken at sites that are iden- side of the headend to the outside of the The volume of tax-exempt private activity tified on the national priorities list under building in which the subscriber is located. bonds that States and local governments the Comprehensive Environmental Response, In the case of a satellite carrier or other may issue for most of these purposes in each Compensation, and Liability Act of 1980 wireless carrier (other than a telecommuni- calendar year is limited by State-wide vol- would continue to not qualify as eligible ex- cations carrier), qualifying equipment is ume limits. The current annual volume lim- penditures. only that equipment that extends from a its are $50 per resident of the State or $150 EFFECTIVE DATE transmission/reception antenna (including million if greater. The volume limits do not the antenna) to a transmission/reception an- The provision to extend the expiration apply to private activity bonds to finance tenna on the outside of the building used by date is effective upon the date of enactment. airports, docks and wharves, certain govern- the subscriber. In addition, any packet The provision to expand the class of eligible mentally owned, but privately operated solid switching equipment deployed in connection sites is effective for expenditures paid or in- waste disposal facilities, certain high speed with other qualifying equipment is quali- curred after the date of enactment. rail facilities, and to certain types of private fying equipment, regardless of location, pro- activity tax-exempt bonds that are subject C. BROADBAND INTERNET ACCESS TAX CREDIT vided that it is the last such equipment in a to other limits on their volume (qualified (SEC. 303 OF THE BILL AND NEW SEC. 48A OF series as part of transmission of a signal to veterans’ mortgage bonds and certain ‘‘new’’ THE CODE) a subscriber or the first in a series in the empowerment zone and enterprise commu- PRESENT LAW transmission of a signal from a subscriber. nity bonds). Present law does not provide a credit for A rural area is any census tract which is The current annual volume limits that investments in telecommunications infra- not within 10 miles of any incorporated or apply to private activity tax-exempt bonds structure. census designated place with a population of increase to $75 per resident of each State or EXPLANATION OF PROVISION more than 25,000 and which is not within a $225 million, if greater, beginning in calendar The bill provides a 10 percent credit of the county with a population density of more year 2007. The increase is, ratably phased in, qualified expenditures incurred by the tax- than 500 people per square mile. An under- beginning with $55 per capita or $165 million, payer with respect to qualified equipment served area is any census tract which is lo- if greater, in calendar year 2003. with which the taxpayer offers ‘‘current gen- cated in an empowerment zone, enterprise EXPLANATION OF PROVISION eration’’ broadband services to subscribers in community, renewal zone, or any census The bill increases the present-law annual rural and underserved areas. In the addition, tract in which the poverty level is greater State private activity bond volume limits to the bill provides a 20 percent credit of the than or equal to 30 percent and in which the $75 per resident of each State or $225 million qualified expenditures incurred by the tax- median family income is less than 70 percent (if greater) beginning in calendar year 2001. payer with respect to qualified equipment of the greater of metropolitan area median In addition, the $75 per resident and the $225 with which the taxpayer offers ‘‘next genera- family income or statewide median family million State limit will be indexed for infla- tion’’ broadband services to subscribers in income. A residential subscriber is any indi- tion beginning in calendar year 2002. rural areas, underserved areas, and to resi- vidual who purchases broadband service to be delivered to his or her dwelling. EFFECTIVE DATE dential subscribers. Current generation EFFECTIVE DATE The provisions are effective for calendar broadband services is defined as the trans- years after December 31, 2000. mission of signals at a rate of at least 1.5 The provision is effective for expenditures million bits per second to the subscriber and incurred after December 31, 2000. B. EXTENSION AND MODIFICATION TO EXPENS- at a rate of at least 200,000 bits per second D. TAX-CREDIT BONDS FOR THE NATIONAL ING OF ENVIRONMENTAL REMEDIATION COSTS from the subscriber. Next generation RAILROAD PASSENGER CORPORATION (‘‘AM- (SEC. 302 OF THE BILL AND SEC. 198 OF THE broadband services is defined as the trans- TRAK’’) AND THE ALASKA RAILROAD (SEC. 304 CODE) mission of signals at a rate of at least 22 mil- OF THE BILL AND NEW SEC. 54 OF THE CODE) PRESENT LAW lion bits per second to the subscriber and at PRESENT LAW Taxpayers can elect to treat certain envi- a rate of at least 10 million bits per second Present law does not authorize the ronmental remediation expenditures that from the subscriber. issuance by any private, for-profit corpora- would otherwise be chargeable to capital ac- Qualified expenditures are those amounts tion of bonds the interest on which is tax-ex- count as deductible in the year paid or in- otherwise chargeable to the capital account empt or eligible for an income tax credit. curred (sec. 198). The deduction applies for with respect to the purchase and installation Tax-exempt bonds may be issued by States both regular and alternative minimum tax of qualified equipment for which deprecia- or local governments to finance their gov- purposes. The expenditure must be incurred tion is allowable under section 168. In the ernmental activities or to finance certain in connection with the abatement or control case of current generation broadband serv- capital expenditures of private businesses or of hazardous substances at a qualified con- ices, qualified expenditures are those that loans to individuals. Additionally, States or taminated site. are incurred by the taxpayer after December local governments may issue tax-credit A ‘‘qualified contaminated site’’ generally 31, 2000, and before January 1, 2004. In the bonds to finance the operation of ‘‘qualified is any property that (1) is held for use in a case of next generation broadband services, zone academies.’’ trade or business, for the production of in- qualified expenditures are those that are in- come, or as inventory; (2) is certified by the curred by the taxpayer after December 31, Tax-exempt bonds appropriate State environmental agency to 2001, and before January 1, 2005. The expendi- Interest on bonds issued by States or local be located within a targeted area; and (3) tures are taken into account for purposes of governments to finance direct activities of contains (or potentially contains) a haz- claiming the credit in the first taxable year those governmental units is excluded from ardous substance (so-called ‘‘brownfields’’). in which the taxpayer provides broadband tax (sec. 103). In addition, interest on certain Targeted areas are defined as: (1) empower- service to at least 10 percent of the potential bonds (‘‘private activity bonds’’) issued by ment zones and enterprise communities as subscribers. In the case of a taxpayer who in- States or local governments acting as con- designated under present law; (2) sites an- curs expenditures for equipment capable of duits to provide financing for private busi- nounced before February 1997, as being sub- serving both subscribers in qualifying areas nesses or individuals is excluded from in- ject to one of the 76 Environmental Protec- and other areas, qualifying expenditures are come if the purpose of the borrowing is spe- tion Agency (‘‘EPA’’) Brownfields Pilots; (3) determined by multiplying otherwise quali- cifically approved in the Code (sec. 141). Ex- any population census tract with a poverty fying expenditures by the ratio of the num- amples of approved private activities for rate of 20 percent or more; and (4) certain in- ber of potential qualifying subscribers to all which States or local governments may pro- dustrial and commercial areas that are adja- potential subscribers the qualifying equip- vide tax-exempt financing include transpor- cent to tracts described in (3) above. How- ment would be capable of serving. tation facilities (airports, ports, mass com- ever, sites that are identified on the national Qualifying equipment must be capable of muting facilities, and certain high speed priorities list under the Comprehensive En- providing broadband services at any time to intercity rail facilities); public works facili- vironmental Response, Compensation, and each subscriber who is utilizing such serv- ties such as water, sewer, and solid waste Liability Act of 1980 cannot qualify as tar- ices. In the case of a telecommunications disposal; and certain social welfare programs geted areas. carrier, qualifying equipment is only that such as low-income rental housing, student Eligible expenditures are those paid or in- equipment that extends from the last point loans, and mortgage loans to certain first- curred before January 1, 2002. of switching to the outside of the building in time homebuyers. High speed intercity rail S9738 CONGRESSIONAL RECORD — SENATE October 3, 2000 facilities eligible for tax-exempt financing tax-credit bonds will be set to allow issuance is not included in the taxpayer’s rate base include land, rail, and stations (but not roll- of the bonds at par, i.e., without any interest for rate-making purposes. If the contribution ing stock) for fixed guideway rail transpor- cost to Amtrak or the Alaska Railroad. In is in property other than water or sewerage tation of passengers and their baggage using general, proceeds of Amtrak/Alaska Railroad disposal facilities, the amount is generally vehicles that are reasonably expected to op- tax-credit bonds would have to be spent excludible from gross income only if the erate at speeds in excess of 150 miles per within 36 months after the bonds are issued. amount is expended to acquire or construct hour between scheduled stops. As of the date the bonds were issued, Amtrak water or sewerage disposal facilities within a Issuance of most private activity bonds is or the Alaska Railroad must certify that it specified time period. subject to annual State volume limits of $50 reasonably expects— EXPLANATION OF PROVISION per resident ($150 million if greater). These (1) to incur a binding obligation with a The provision specifically defines contribu- volume limits are scheduled to increase to third party to spend at least 10 percent of the $75 per resident ($225 million if greater) over tion in aid of construction to include cus- bond proceeds within six months (or in the tomer connection fees (including amounts the period 2003 through 2007. case of self-constructed property, to have Investment earnings on all tax-exempt paid to connect the customer’s line to or ex- commenced construction within six months); tend a main water or sewer line). Thus, the bonds, including earnings on invested sink- (2) to spend the bond proceeds with due ing funds associated with such bonds is re- provision permits customer connection fees diligence; and received by a regulated public utility that stricted by the Code to prevent the issuance (3) to spend at least 95 percent of the pro- of bonds earlier or in a greater amount than provides water or sewerage disposal services ceeds for qualifying capital costs within to be treated as nontaxable contributions to necessary for the purpose of the borrowing. three years. In general, all profits on investment of such capital (excludible from gross income). Amtrak/Alaska Railroad tax credit bonds Amounts paid as a service charge for start- proceeds must be rebated to the Federal Gov- may only be issued for projects that are ap- ernment. Interest on bonds associated with ing or stopping services to a customer con- proved by the Department of Transportation invested sinking funds is taxable. tinue to be includible in gross income of a and with respect to which the issuing rail- taxpayer. Tax-credit bonds for qualified zone academies road has binding commitments from one or As an alternative to traditional tax-ex- more States to make matching contributions EFFECTIVE DATE empt bonds, certain States or local govern- of at least 20 percent of the project cost. The provision is effective for amounts re- ments are given authority to issue ‘‘qualified Projects having State matching contribu- ceived after the date of enactment. zone academy bonds.’’ A total of $400 million tions in excess of 20 percent are given a pref- F. TREATMENT OF LEASEHOLD IMPROVEMENTS of qualified zone academy bonds is author- erence. The State matching contributions, (SEC. 306 OF THE BILL AND SEC. 168 OF THE ized to be issued in each year of 1998 through along with earnings on investment of the CODE) 2001. The $400 million is allocated to States tax-credit bond proceeds must be invested in PRESENT LAW according to their respective populations of a trust account (i.e., an sinking fund) and Depreciation of leasehold improvements individuals below the poverty line. used along with earnings on the trust ac- Depreciation allowances for property used Qualified zone academy bonds are taxable count for repayment of the principal amount in a trade or business generally are deter- bonds with respect to which the investor re- of the bonds. mined under the modified Accelerated Cost ceives an income tax credit equal to an as- Amtrak/Alaska Railroad tax-credit bonds Recovery System (‘‘MACRS’’) of section 168. sumed interest rate set by the Treasury De- can be owned (and income tax credits Depreciation allowances for improvements partment to allow issuance of the bonds claimed) by any taxpayer. The amount of the made on leased property are determined without discount and without interest cost credit will be included in the bondholder’s under MACRS, even if the MACRS recovery to the issuer. The bonds may be used for ren- income. Additionally, provisions are in- ovating, providing equipment to, developing period assigned to the property is longer cluded in the proposal to allow the credits to course materials for, or training teachers in than the term of the lease (sec. 168(i)(8)). be stripped and sold to different investors eligible schools. Eligible schools are elemen- This rule applies regardless whether the les- than the investors in the bond principal. tary and secondary schools with respect to sor or lessee places the leasehold improve- The required State matching contribution which private entities make contributions ments in service. If a leasehold improvement may not be derived from Federal monies. equaling at least 10 percent of the bond pro- constitutes an addition or improvement to Any Federal Highway Trust Fund monies ceeds. nonresidential real property already placed transferred to the States are treated as Fed- Only financial institutions are eligible to in service, the improvement is depreciated eral monies for this purpose. During the pe- claim the credits on qualified zone academy using the straight-line method over a 39-year riod when tax-credit bonds are authorized, bonds. The amount of the credit is taken recovery period, beginning in the month the Amtrak is not allowed to receive any High- into income. The credit may be claimed addition or improvement was placed in serv- way Trust Fund monies other than those au- against both regular income tax and AMT li- ice (secs. 168(b)(3), (c)(1), (d)(2), and (i)(6)). thorized on the date of the provision’s enact- ability. Treatment of dispositions of leasehold improve- There are no arbitrage restrictions applica- ment. ments ble to investment earnings on qualified zone Amtrak is required annually to submit a academy bond proceeds. five-year capital plan to Congress, and to A lessor of leased property that disposes of a leasehold improvement which was made by EXPLANATION OF PROVISION satisfy independent oversight requirements with respect to the management of tax-cred- the lessor for the lessee of the property may The provision authorizes the National it-bond-financed projects. Finally, the Treas- take the adjusted basis of the improvement Railroad Passenger Corporation (‘‘Amtrak’’) ury Department is required to certify annu- into account for purposes of determining and the Alaska Railroad to issue an aggre- ally that funds deposited in the escrow ac- gain or loss if the improvement is irrev- gate amount of $10 billion of tax-credit bonds counts for repayment of tax-credit bonds ocably disposed of or abandoned by the lessor to finance its capital projects. Annual (with actual and projected earnings thereon) at the termination of the lease. This rule issuance of the bonds may not exceed $1 bil- are sufficient to ensure full repayment of the conforms the treatment of lessors and les- lion per year (plus any authorized amount bond principal. sees with respect to leasehold improvements that was not issued in previous years) during disposed of at the end of a term of lease. For the ten Fiscal Year period, 2001–2010. Unused EFFECTIVE DATE purposes of applying this rule, it is expected bond authority could be carried forward to The provision is effective for tax credit that a lessor must be able to separately ac- succeeding years until used, subject to a lim- bonds issued by Amtrak or the Alaska Rail- count for the adjusted basis of the leasehold itation that no tax-credit bonds could be road after September 30, 2000. improvement that is irrevocably disposed of issued after fiscal year 2015. E. CLARIFICATION OF CONTRIBUTION IN AID OF or abandoned. This rule does not apply to the Projects eligible for tax-credit bond financ- CONSTRUCTION (SEC. 305 OF THE BILL AND extent section 280B applies to the demolition ing are defined as the acquisition, construc- SEC. 118 OF THE CODE) of a structure, a portion of which may in- tion of equipment, rolling stock, and other clude leasehold improvements. capital improvements for (1) the northeast PRESENT LAW rail corridor between Washington, D.C. and Section 118(a) provides that gross income EXPLANATION OF PROVISION Boston, Massachusetts; (2) high-speed rail of a corporation does not include a contribu- The provision provides that 15-year prop- corridors designated under section 104(d)(2) tion to its capital. In general, section 118(b) erty for purposes of the depreciation rules of of Title 23 of the United States Code; and (3) provides that a contribution to the capital of section 168 includes qualified leasehold im- non-designated high-speed rail corridors, in- a corporation does not include any contribu- provement property. The straight line meth- cluding station rehabilitation, track or sig- tion in aid of construction or any other con- od is required to be used with respect to nal improvements, or grade crossing elimi- tribution by a customer or potential cus- qualified leasehold improvement property. nation. The last purpose is limited to a max- tomer. However, for any amount of money or Qualified leasehold improvement property imum of 10 percent of the proceeds of any property received by a regulated public util- is any improvement to an interior portion of bond issue. At least 70 percent of the tax- ity that provides water or sewerage disposal a building that is nonresidential real prop- credit bonds must be issued for projects de- services such amount shall be considered a erty, provided certain requirements are met. scribed in (2) and (3). contribution to capital (excludible from The improvement must be made under or As with qualified zone academy bonds, the gross income) so long as such amount: (1) is pursuant to a lease either by the lessee (or interest rate on Amtrak/Alaska Railroad a contribution in aid of construction, and (2) sublessee) of that portion of the building, or October 3, 2000 CONGRESSIONAL RECORD — SENATE S9739

by the lessor of that portion of the building. B. EXCLUSION OF RENTAL INCOME FROM SECA bonds on which interest may be tax-exempt That portion of the building is to be occupied TAX (SEC. 402 OF THE BILL AND SEC. 1402 OF include bonds issued to finance loans to first- exclusively by the lessee (or any sublessee). THE CODE) time farmers for the acquisition of land and The original use of the qualified leasehold PRESENT LAW certain equipment (‘‘aggie bonds’’). improvement property must begin with the Generally, SECA taxes are imposed on an The volume of tax-exempt private activity lessee, and must begin after December 31, individual’s net earnings from self employ- bonds that States and local governments 2006. The improvement must be placed in may issue in each calendar year (including service more than three years after the date ment. Net earnings from self-employment generally means gross income (including the aggie bonds) is limited by State-wide volume the building was first placed in service. limits. The current annual volume limits are Qualified leasehold improvement property individual’s net distributive share of part- nership income) derived by an individual the greater of: (1) $50 per resident of the does not include any improvement for which State; or (2) $150 million. The volume limits the expenditure is attributable to the en- from any trade or business carried on by the do not apply to private activity bonds to fi- largement of the building, any elevator or individual less applicable deductions. One ex- nance airports, docks and wharves, certain escalator, any structural component benefit- clusion from net earnings from self employ- governmentally owned, but privately oper- ting a common area, or the internal struc- ment involves certain real estate rentals. ated solid waste disposal facilities, certain tural framework of the building. Under this rule, net earnings from self em- No special rule is specified for the class life ployment do not include income from the high speed rail facilities, and to certain of qualified leasehold improvement property. rental of real estate and from personal prop- types of private activity tax-exempt bonds Therefore, the general rule that the class life erty leased with the real estate unless the that are subject to other limits on their vol- for nonresidential real and residential rental rental income is received under an arrange- ume (qualified veterans’ mortgage bonds and property is 40 years applies. ment between an owner or tenant of land and certain ‘‘new’’ empowerment zone and enter- For purposes of the provision, a commit- another individual that provides: (1) such prise community bonds). ment to enter into a lease is treated as a other individual shall produce agricultural EXPLANATION OF PROVISION lease, and the parties to the commitment are or horticultural commodities on such land; treated as lessor and lessee, provided the The bill exempts ‘‘aggie bonds’’ from the and (2) there shall be material participation State volume limits. lease is in effect at the time the qualified by the owner or tenant with respect to any leasehold improvement property is placed in such agricultural or horticultural commod- EFFECTIVE DATE service. A lease between related persons is ities. Other rules apply to rental payments The provision applies to bonds issued after not considered a lease for this purpose. received by an individual in the course of the December 31, 2000. EFFECTIVE DATE individual’s trade or business as a real estate E. MODIFICATIONS TO SECTION 512(b)(13) (SEC. The provision is effective for qualified dealer. 405 OF THE BILL AND SEC. 512 OF THE CODE) leasehold improvement property placed in EXPLANATION OF PROVISION service after December 31, 2006. PRESENT LAW The bill provides that net earnings from IV. TAX RELIEF FOR FARMERS self employment do not include income from In general, interest, rents, royalties and A. FARM, FISH, AND RANCH RISK MANAGEMENT the rental of real estate under a lease agree- annuities are excluded from the unrelated ACCOUNTS (‘‘FFARRM ACCOUNTS’’) (SEC. 401 ment (rather than an arrangement) between business income (‘‘UBI’’) of tax-exempt orga- OF THE BILL AND NEW SEC. 468C OF THE an owner or tenant of land and another indi- nizations. However, section 512(b)(13) treats CODE) vidual which provides that: (1) such other in- otherwise excluded rent, royalty, annuity, PRESENT LAW dividual shall produce agricultural or horti- and interest income as UBI if such income is received from a taxable or tax-exempt sub- There is no provision in present law allow- cultural commodities on such land; and (2) ing the elective deferral of farm or fishing there shall be material participation by the sidiary that is 50 percent controlled by the income. owner or tenant in the production or man- parent tax-exempt organization. In the case of a stock subsidiary, ‘‘control’’ means own- EXPLANATION OF PROVISION agement of the production of such agricul- tural or horticultural commodities. ership by vote or value of more than 50 per- The bill allows taxpayers engaged in an eli- cent of the stock. In the case of a partner- gible business to establish FFARRM ac- EFFECTIVE DATE ship or other entity, control means owner- counts. An eligible business is any trade or The provision is effective for taxable years ship of more than 50 percent of the profits, business of farming in which the taxpayer beginning after December 31, 2000. capital or beneficial interests. In addition, actively participates, including the oper- C. EXCLUSION OF CONSERVATION RESERVE present law applies the constructive owner- ation of a nursery or sod farm or the raising PROGRAM PAYMENTS FROM SECA TAX (SEC. ship rules of section 318 for purposes of sec- or harvesting of crop-bearing or ornamental 403 OF THE BILL AND SEC. 1402 OF THE CODE) tion 512(b)(13). Thus, a parent exempt organi- trees. An eligible business also is the trade zation is deemed to control any subsidiary in or business of commercial fishing as that PRESENT LAW which it holds more than 50 percent of the term is defined under section (3) of the Mag- Generally, SECA tax is imposed on an indi- voting power or value, directly (as in the nuson-Stevens Fishery Conservation and vidual’s self-employment income within the Management Act (16 U.S.C. 1802) and in- Social Security wage base. Net earnings case of a first-tier subsidiary) or indirectly cludes the trade or business of catching, tak- from self-employment generally means gross (as in the case of a second-tier subsidiary). ing or harvesting fish that are intended to income (including the individual’s net dis- Under present law, interest, rent, annuity, enter commerce through sale, barter or tributive share of partnership income) de- or royalty payments made by a controlled trade. rived by an individual from any trade or entity to a tax-exempt organization are in- Contributions to a FFARRM account are business carried on by the individual less ap- cludible in the latter organization’s UBI and deductible and are limited to 20 percent of plicable deductions. A recent court decision are subject to the unrelated business income the taxable income that is attributable to found that payments made under the con- tax to the extent the payment reduces the the eligible business. The deduction is taken servation reserve program are includible in net unrelated income (or increases any net into account in determining adjusted gross an individual’s self-employment income for unrelated loss) of the controlled entity. income and reduces the income attributable purposes of SECA tax. The Taxpayer Relief Act of 1997 (the ‘‘1997 to the eligible business for all income tax Act’’) made several modifications, as de- EXPLANATION OF PROVISION purposes other than the determination of the scribed above, to the control requirement of 20 percent of eligible income limitation on The bill provides that net earnings from section 512(b)(13). In order to provide transi- contributions to a FFARRM account. Con- self-employment do not include conservation tional relief, the changes made by the 1997 tributions to a FFARRM account do not re- reserve program payments for SECA. Act do not apply to any payment received or duce earnings from self-employment. Ac- EFFECTIVE DATE accrued during the first two taxable years cordingly, distributions are not included in The provision is effective for payments beginning on or after the date of enactment self-employment income. made after December 31, 2000. of the 1997 Act (August 5, 1997) if such pay- A FFARRM account is taxed as a grantor D. EXEMPTION OF AGRICULTURAL BONDS FROM ment is received or accrued pursuant to a trust and any earnings are required to be dis- binding written contract in effect on June 8, tributed currently. Thus, any income earned PRIVATE ACTIVITY BOND VOLUME CAP (SEC. 404 OF THE BILL AND SEC. 146 OF THE CODE) 1997, and at all times thereafter before such in the FFARRM account is taxed currently payment (but not pursuant to any contract to the farmer or fisherman who established PRESENT LAW provision that permits optional accelerated the account. Amounts can remain on deposit Interest on bonds issued by States and payments). in a FFARRM account for up to five years. local governments is excluded from income if Any amount that has not been distributed by the proceeds of the bonds are used to finance EXPLANATION OF PROVISION the close of the fourth year following the activities conducted and paid for by the gov- The bill provides that interest, rent, annu- year of deposit is deemed to be distributed ernmental units (sec. 103). Interest on bonds ity, or royalty payments made by a con- and includible in the gross income of the ac- issued by these governmental units to fi- trolled subsidiary to a tax-exempt parent is count owner. nance activities carried out and paid for by not Unrelated Business Income except to the EFFECTIVE DATE private persons (‘‘private activity bonds’’) is extent that such payments exceed arm’s The provision is effective for taxable years taxable unless the activities are specified in length values, as determined under sec. 482 beginning after December 31, 2000. the Internal Revenue Code. Private activity principles. S9740 CONGRESSIONAL RECORD — SENATE October 3, 2000

EFFECTIVE DATE taxable income from the trade or business of only remedies available to such an organiza- The provision generally is effective for farming. The averaging election is not co- tion are to file a petition in the U.S. Tax payments received or accrued after Decem- ordinated with the alternative minimum tax. Court for relief following the issuance of a ber 31, 2000. The binding written contract ex- Thus, some farmers may become subject to notice of deficiency or to pay tax and sue for ception contained in the 1997 Act will apply the alternative minimum tax solely as a re- a refund in a U.S. district court or the U.S. to any payment received or accrued under sult of the averaging election. Court of Federal Claims. such contract prior to January 1, 2001. EXPLANATION OF PROVISION In limited circumstances, declaratory judgment procedures are available, which F. CHARITABLE DEDUCTION FOR CONTRIBU- The bill extends to individuals engaged in generally permit a taxpayer to seek judicial TIONS OF FOOD INVENTORY (SEC. 406 OF THE the trade or business of fishing the election review of an IRS determination prior to the BILL AND SEC. 170 OF THE CODE) that is available to individual farmers to use issuance of a notice of deficiency and prior income averaging. PRESENT LAW to payment of tax. Examples of declaratory The bill also coordinates farmers and fish- The maximum charitable contribution de- judgment procedures which are available in- ermen income averaging with the alter- duction that may be claimed by a corpora- clude disputes involving the status of a tax- native minimum tax. Under the bill, a farm- tion for any one taxable year is limited to 10 exempt organization under section 501(c)(3), er will owe alternative minimum tax only to percent of the corporation’s taxable income the qualification of retirement plans, the the extent he or she will owe alternative for that year (disregarding charitable con- value of gifts, the status of certain govern- minimum tax had averaging not been elect- tributions and with certain other modifica- mental obligations, or eligibility of an estate ed. This result is achieved by excluding the tions) (sec. 170(b)(2)). Corporations also are to pay tax in installments under section 6166. impact of the election to average farm in- subject to certain limitations based on the In such cases, taxpayers may challenge ad- come from the calculation of both regular type of property contributed. In the case of verse determinations by commencing a de- tax and tentative minimum tax, solely for a charitable contribution of short-term gain claratory judgment action. For example, the purpose of determining alternative min- property, inventory, or other ordinary in- where the IRS denies an organization’s appli- imum tax. come property, the amount of the deduction cation for recognition of exemption under generally is limited to the taxpayer’s basis EFFECTIVE DATE section 501(c)(3) or fails to act on such appli- (generally, cost) in the property. However, The provision is effective for taxable years cation, or where the IRS informs a section special rules in the Code provide an aug- beginning after December 31, 2000. 501(c)(3) organization that it is considering mented deduction for certain corporate con- H. COOPERATIVE MARKETING TO INCLUDE revoking or adversely modifying its tax-ex- tributions. Under these special rules, the VALUE ADDED PROCESSING THROUGH ANI- empt status, present law authorizes the or- amount of the augmented deduction is equal MALS (SEC. 408 OF THE BILL AND SEC. 1388 OF ganization to seek a declaratory judgment to the lesser of (1) the basis of the donated THE CODE) regarding its tax exempt status. property plus one-half of the amount of ordi- Declaratory judgment procedures are not nary income that would have been realized if PRESENT LAW available under present law to a cooperative the property had been sold, or (2) twice the Under present law, taxable cooperatives in with respect to an IRS determination regard- basis of the donated property. To be eligible essence are treated as pass-through entities ing its status as a farmers’ cooperative under for the enhanced deduction, the taxpayer in that the cooperative is not subject to cor- section 521. porate income tax to the extent the coopera- must establish that the fair market value of EXPLANATION OF PROVISION tive timely pays patronage dividends. Tax- the donated item exceeds basis. The valu- The bill extends the declaratory judgment exempt cooperatives (sec. 521) are coopera- ation of food inventory has been the subject procedures to cooperatives. Such a case may tives of farmers, fruit growers, and like orga- of ongoing disputes between taxpayers and be commenced in the U.S. Tax Court, a U.S. nizations organized and operated on a coop- the IRS. district court, or the U.S. Court of Federal erative basis for the purpose of marketing The special treatment applies only to do- Claims, and such court has jurisdiction to the products of members or other producers nations made by C corporations. S corpora- determine a cooperative’s initial or con- and turning back the proceeds of sales, less tions, personal holding companies, and serv- tinuing qualification of a farmers’ coopera- necessary marketing expenses on the basis of ice organizations are not eligible donors. tive described in sec. 521. either the quantity or the value of products EXPLANATION OF PROVISION furnished by them. EFFECTIVE DATE The bill amends Code section 170 to expand The Internal Revenue Service takes the po- The provision is effective with respect to the augmented deduction such that any tax- sition that a cooperative is not marketing pleadings filed after the date of enactment, payer engaged in the trade or business of the products of members or other producers but only with respect to determinations (or farming is eligible to claim an enhanced de- where the cooperative adds value through requests for determinations) made after Jan- duction for donations of food inventory the use of animals (e.g., farmers sell corn to uary 1, 2000. under section 170(e)(3). cooperative which is feed to chickens which J. SMALL ETHANOL PRODUCER CREDIT (SEC. The value of the enhanced deduction can produce eggs). 410 OF THE BILL AND SEC. 40 OF THE CODE) be no greater than twice the taxpayer’s basis in the donated property. The bill provides EXPLANATION OF PROVISION PRESENT LAW that in the case of a cash method taxpayer, The bill provides that marketing products ‘‘Small ethanol producers’’ are allowed a the taxpayer’s basis in the donated food will of members or other producers includes feed- 10-cents-per-gallon production income tax equal half of the fair market value of the do- ing products of members or other producers credit on up to 15 million gallons of produc- nated food. to cattle, hogs, fish, chickens, or other ani- tion annually. This credit is in addition to The bill modifies and clarifies the deter- mals and selling the resulting animals or the 54-cents-per-gallon benefit available for mination of fair market value for the dona- animal products. ethanol generally. tion of food inventory. Under the bill, the EFFECTIVE DATE Under present law, cooperatives in essence fair market value of donated food which can- are treated as pass-through entities in that The provision is effective for taxable years the cooperative is not subject to corporate not or will not be sold solely due to internal beginning after the date of enactment. standards of the taxpayer, lack of market, or income tax to the extent the cooperative similar circumstances is determined without I. EXTEND DECLARATORY JUDGMENT PROCE- timely pays patronage dividends. Under regard to such factors and, if applicable, by DURES TO FARMERS’ COOPERATIVE ORGANI- present law, the only credits that may be taking into account the price at which the ZATIONS (SEC. 409 OF THE BILL AND SEC. 7428 flowed-through to cooperative patrons are same or similar food items are sold by the OF THE CODE) the rehabilitation credit (sec. 47), the energy taxpayer at the time of the contribution or PRESENT LAW property credit (sec. 48(a)), and the reforest- in the recent past. Cooperatives may deduct from their tax- ation credit (sec. 48(b)), but not the small The bill does not apply for taxable years able income amounts distributed to patrons ethanol producer credit. beginning after December 31, 2003. in the form of patronage dividends, and cer- EXPLANATION OF PROVISION EFFECTIVE DATE tain other amounts paid or allocated to pa- The bill: (1) provides that the small pro- The provision is effective for taxable years trons, to the extent the net earnings of the ducer credit is not a ‘‘passive credit’’; (2) al- beginning after December 31, 2000. cooperative from business done with or for lows the credit to be claimed against the al- patrons, provided that there is a pre-existing ternative minimum tax; and (3) repeals the G. COORDINATE FARMERS AND FISHERMAN IN- obligation to distribute such amounts (sec. present rule that the amount of the credit is COME AVERAGING AND THE ALTERNATIVE 1382). Cooperatives that qualify as farmers’ included in income. MINIMUM TAX (SEC. 407 OF THE BILL AND cooperatives under section 521 may claim ad- The bill also allows cooperatives to elect SECS. 55 AND 1301 OF THE CODE) ditional deductions for dividends on capital to pass-through small ethanol producer cred- PRESENT LAW stock and patronage-based distributions of its to its patrons. The credit allowed to a pa- An individual taxpayer engaged in a farm- nonpatronage income. tron is that proportion of the credit the co- ing business as defined by section 263A(e)(4) Under present law, there is limited access operative elects to pass-through for that may elect to compute his or her current year to judicial review of disputes regarding the year as the amount of patronage of that pa- tax liability by averaging, over the prior initial or continuing qualification of a farm- tron for that year bears to total patronage of three-year period, all or portion of his or her er’s cooperative described in section 521. The all patrons for that year. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9741

EFFECTIVE DATE Revenue Service (‘‘IRS’’) provided guidance the G&G costs related to the exploration is The provision is effective for taxable years regarding the proper tax treatment of G&G deductible as a loss under section 165 for the beginning after date of enactment. costs. The ruling describes a typical geologi- taxable year in which that particular project cal and geophysical exploration program as area is abandoned as a potential source of K. PAYMENT OF DIVIDENDS ON STOCK OF CO- containing the following elements: mineral production. OPERATIVES WITHOUT REDUCING PATRONAGE It is customary in the search for mineral EXPLANATION OF PROVISION DIVIDENDS (SEC. 411 OF THE BILL AND SEC. producing properties for a taxpayer to con- 1388 OF THE CODE) The provision allows geological and geo- duct an exploration program in one or more physical costs incurred in connection with PRESENT LAW identifiable project areas. Each project area oil and gas exploration in the United States Cooperatives, including tax-exempt farm- encompasses a territory that the taxpayer to be deducted currently. ers’ cooperatives, are treated like a conduit determines can be explored advantageously EFFECTIVE DATE for Federal income tax purposes since a co- in a single integrated operation. This deter- operative may deduct patronage dividends mination is made after analyzing certain The provision is effective for G&G costs in- curred or paid in taxable years beginning paid from its taxable income. In general, pa- variables such as the size and topography of after December 31, 2001. tronage dividends are amounts paid to pa- the project area to be explored, the existing trons (1) on the basis of the quantity or value information available with respect to the B. ALLOW CERTAIN OIL AND GAS ‘‘DELAY of business done with or for its patrons, (2) project area and nearby areas, and the quan- RENTAL PAYMENTS’’ TO BE DEDUCTED CUR- under a valid enforceable written obligation tity of equipment, the number of personnel, RENTLY (SEC. 502 OF THE BILL AND SEC. 263 to the patron to pay such amount, which ob- and the amount of money available to con- OF THE CODE) ligation existed before the cooperative re- duct a reasonable exploration program over PRESENT LAW ceived such amounts, and (3) which is deter- the project area. Present law generally requires costs asso- mined by reference to the net earnings of the The taxpayer selects a specific project area ciated with inventory and property held for cooperative from business done with or for from which geological and geophysical data resale to be capitalized rather than currently its patrons. are desired and conducts a reconnaissance- deducted as they are incurred. (sec. 2634). Oil Treasury Regulations provide that net type survey utilizing various geological and and gas producers typically contract for earnings are reduced by dividends paid on geophysical exploration techniques that are mineral production in exchange for royalty capital stock or other proprietary capital in- designed to yield data that will afford a basis payments. If mineral production is delayed, terests. The effect of this rule is to reduce for identifying specific geological features these contracts provide for ‘‘delay rental the amount of earnings that the cooperative with sufficient mineral potential to merit payments’’ as a condition of their extension. can treat as patronage earnings which re- further exploration. The Treasury Department has taken the po- duces the amount that cooperative can de- Each separable, noncontiguous portion of sition that the uniform capitalization rules duct as patronage dividends. the original project area in which such a spe- of section 263A require delay rental pay- ments to be capitalized. EXPLANATION OF PROVISION cific geological feature is identified is a sepa- rate ‘‘area of interest.’’ The original project EXPLANATION OF PROVISION The bill allows cooperatives to pay divi- area is subdivided into as many small dends on capital stock without those divi- The provision allows delay rental pay- projects as there are areas of interest located ments to be deducted currently. dends reducing excludable patronage-sourced and identified within the original project EFFECTIVE DATE income to the extent that the cooperative’s area. If the circumstances permit a detailed organizational documents provide that the The provision applies to delay rental pay- exploratory survey to be conducted without ments incurred in taxable years beginning dividends do not reduce amounts owed to pa- an initial reconnaissance-type survey, the trons. after December 31, 2001. project area and the area of interest will be No inference is intended from the proposal EFFECTIVE DATE coextensive. as to the proper treatment of pre-effective The provision applies to distributions in The taxpayer seeks to further define the date delay rental payments. geological features identified by the prior re- taxable years beginning after the date of en- C. ALLOW NET OPERATING LOSSES FROM OIL connaissance-type surveys by additional, actment. AND GAS PROPERTIES TO BE CARRIED BACK more detailed, exploratory surveys con- V. TAX INCENTIVES FOR THE FOR UPTOFIVE YEARS (SEC. 503 OF THE ducted with respect to each area of interest. PRODUCTION OF ENERGY BILL AND SEC. 172 OF THE CODE) For this purpose, the taxpayer engages in A. ALLOW GEOLOGICAL AND GEOPHYSICAL more intensive geological and geophysical PRESENT LAW COSTS TO BE DEDUCTED CURRENTLY (SEC. 501 exploration employing methods that are de- A net operating loss (‘‘NOL’’) generally is OF THE BILL AND SEC. 263 OF THE CODE) signed to yield sufficiently accurate sub-sur- the amount by which business deductions of PRESENT LAW face data to afford a basis for a decision to a taxpayer exceed business gross income. In In general acquire or retain properties within or adja- general, an NOL may be carried back two years and carried forward 20 years to offset Under present law, current deductions are cent to a particular area of interest or to abandon the entire area of interest as unwor- taxable income in such years. A carryback of not allowed for any amount paid for new an NOL results in the refund of Federal in- buildings or for permanent improvements or thy of development by mine or well. The 1977 ruling provides that if, on the come tax for the carryback year. A betterments made to increase the value of carryforward of an NOL reduces Federal in- any property or estate (sec. 263(a)). Treasury basis of data obtained from the preliminary geological and geophysical exploration oper- come tax for the carryforward year. Special Department regulations define capital NOL carryback rules apply to (1) casualty amounts to include amounts paid or incurred ations, only one area of interest is located and identified within the original project and theft losses of individual taxpayers, (2) (1) to add to the value, or substantially pro- Presidentially declared disasters for tax- long the useful life, of property owned by the area, then the entire expenditure for those exploratory operations is to be allocated to payers engaged in a farming business or a taxpayer or (2) to adapt property to a new or small business, (3) real estate investment that one area of interest and thus capitalized different use. trusts, (4) specified liability losses, (5) excess into the depletable basis of that area of in- The proper income tax treatment of geo- interest losses, and (6) farm losses. terest. On the other hand, if two or more logical and geophysical costs (‘‘G&G costs’’) EXPLANATION OF PROVISION associated with oil and gas production has areas of interest are located and identified within the original project area, the entire The provision provides a special five-year been the subject of a number of court deci- carryback for certain eligible oil and gas sions and administrative rulings. G&G costs expenditure for the exploratory operations is to be allocated equally among the various losses of independent producers. The are incurred by the taxpayer for the purpose carryforward period remains 20 years. An of obtaining and accumulating data that will areas of interest. The 1977 ruling further provides that if, on ‘‘eligible oil and gas loss’’ is defined as the serve as a basis for the acquisition and reten- the basis of data obtained from a detailed lesser of (1) the amount which would be the tion of oil or gas properties by taxpayers ex- survey that does not relate exclusively to taxpayer’s NOL for the taxable year if only ploring for the minerals. Courts have ruled any particular property within a particular income and deductions attributable to oper- that such costs are capital in nature and are area of interest, an oil or gas property is ac- ating mineral interests in oil and gas wells not deductible as ordinary and necessary quired or retained within or adjacent to that were taken into account, or (2) the amount business expenses. Accordingly, the costs at- area of interest, the entire G&G exploration of such net operating loss for such taxable tributable to such exploration are allocable expenditures, including those incurred prior year. In calculating the amount of a tax- to the cost of the property acquired or re- to the identification of the particular area of payer’s NOL carrybacks, the portion of the tained. The term ‘‘property’’ includes an eco- interest but allocated thereto, are to be allo- NOL that is attributable to an eligible oil nomic interest in a tract or parcel of land cated to the property as a capital cost under and gas loss is treated as a separate NOL and notwithstanding that a mineral deposit has section 263(a). taken into account after the remaining por- not been established or proven at the time If, however, from the data obtained by the tion of the NOL for the taxable year. the costs are incurred. exploratory operations no areas of interest EFFECTIVE DATE Revenue Ruling 77–188 are located and identified by the taxpayer The proposal applies to NOLs arising in In Revenue Ruling 77–188 (hereinafter re- within the original project area, then the taxable years beginning after December 31, ferred to as the ‘‘1977 ruling’’), the Internal 1977 ruling states that the entire amount of 2001. S9742 CONGRESSIONAL RECORD — SENATE October 3, 2000

D. TEMPORARY SUSPENSION OF PERCENTAGE F. NATURAL GAS GATHERING LINES TREATED or, (2), oil, gas, or a primary product of oil or OF DEPLETION DEDUCTION LIMITATION AS 7-YEAR PROPERTY (SEC. 506 OF THE BILL gas which is sold by the CFC or a related per- BASED ON 65 PERCENT OF TAXABLE INCOME AND SEC. 168(e)(3) OF THE CODE) son for use or consumption within such for- (SEC. 504 OF THE BILL AND SEC. 613A OF THE PRESENT LAW eign country or is loaded in such country as CODE) fuel on a vessel or aircraft. An exclusion also The applicable recovery period for assets is provided for income of a CFC that is a PRESENT LAW placed in service under the Modified Acceler- small producer (i.e., a corporation whose av- Depletion, like depreciation, is a form of ated Cost Recovery System is based on the erage daily oil and natural gas production, capital cost recovery. In both cases, the tax- ‘‘class life of the property.’’ The class lives of including production by related corpora- payer is allowed a deduction in recognition assets placed in service after 1986 are set tions, is less than 1,000 barrels). of the fact that an asset—in the case of de- forth in Revenue Procedure 87–56. Revenue pletion for oil or gas interests, the mineral Procedure 87–56 includes two asset classes EXPLANATION OF PROVISION reserve itself—is being expended in order to that could describe natural gas gathering The bill provides an additional exception produce income. Certain costs incurred prior lines owned by non-producers of natural gas. to the definition of foreign base company oil to drilling an oil or gas property are recov- Asset class 13.2, describing assets used in the related income. Under the bill, foreign base ered through the depletion deduction. These exploration for and production of petroleum company oil related income does not include include costs of acquiring the lease or other and natural gas deposits, provides a class life interest in the property and geological and income derived from a source within a for- of 14 years and a depreciation recovery pe- geophysical costs (in advance of actual drill- eign country in connection with the pipeline riod of seven years. Asset class 46.0, describ- ing). Depletion is available to any person transportation of oil or gas within such for- ing pipeline transportation, provides a class having an economic interest in a producing eign country. Thus, the exception applies life of 22 years and a recovery period of 15 property. whether or not the CFC that owns the pipe- years. The uncertainty regarding the appro- Two methods of depletion currently are al- line also owns any interest in the oil or gas priate recovery period has resulted in litiga- lowable under the Code: (1) the cost deple- transported. In addition, the exception ap- tion between taxpayers and the IRS. Re- tion method, and (2) the percentage deple- plies to income earned from the transpor- cently, the 10th Circuit Court of Appeals tion method (secs. 611–613). Under the cost tation of oil or gas by pipeline in a country held that natural gas gathering lines owned depletion method, the taxpayer deducts that in which the oil or gas was neither extracted by non-producers fall within the scope of portion of the adjusted basis of the deplet- nor consumed within such foreign country. able property which is equal to the ratio of Asset class 13.2 (i.e., seven-year recovery pe- units sold from that property during the tax- riod). EFFECTIVE DATE able year to the number of units remaining EXPLANATION OF PROVISION The provision is effective for taxable years as of the end of taxable year plus the number The bill establishes a statutory seven-year of CFCs beginning after December 31, 2001, of units sold during the taxable year. Thus, recovery period for all natural gas gathering and taxable years of U.S. shareholders with the amount recovered under cost depletion lines. A natural gas gathering line would be or within which such taxable years of CFCs may never exceed the taxpayer’s basis in the defined to include pipe, equipment, and ap- end. property. purtenances that are (1) determined to be a Under the percentage depletion method, TITLE VI. TAX INCENTIVES FOR gathering line by the Federal Energy Regu- generally, 15 percent of the taxpayer’s gross CONSERVATION income from an oil- or gas-producing prop- latory Commission, or (2) used to deliver erty is allowed as a deduction in each tax- natural gas from the wellhead or a common A. EXCLUSION OF 50 PERCENT OF GAIN ON able year (sec. 613A(c)). The amount de- point to the point at which such gas first SALES OF LAND OR INTERESTS IN LAND OR ducted generally may not exceed 100 percent reaches (a) a gas processing plant, (b) an WATER TO ELIGIBLE ENTITIES FOR CON- of the net income from that property in any interconnection with an interstate trans- SERVATION PURPOSES (SEC. 601 OF THE BILL year (the ‘‘net-income limitation’’) (sec. mission line, (c) an interconnection with an AND NEW SEC. 121A OF THE CODE) intrastate transmission line, or (d) a direct 613(a)). Additionally, the percentage deple- PRESENT LAW tion deduction for all oil and gas properties interconnection with a local distribution may not exceed 65 percent of the taxpayer’s company, a gas storage facility, or an indus- Gain from the sale or exchange of land held overall taxable income (determined before trial consumer. more than one year generally is treated as such deduction and adjusted for certain loss EFFECTIVE DATE long-term capital gain. carrybacks and trust distributions) (sec. The provision is effective for property Generally the net capital gain of an indi- 613A(d)(1)). placed in service on or after the date of en- vidual (i.e., long-term capital gain less EXPLANATION OF PROVISION actment. No inference would be intended as short-term capital loss) is subject to a max- The provision suspends the 65-percent-of- to the proper treatment of such property imum rate of 20 percent. taxable-income limit for taxable years begin- placed in service before the date of enact- EXPLANATION OF PROVISION ning after December 31, 2000 and before Janu- ment. ary 1, 2004. The bill provides a 50-percent exclusion G. CLARIFICATION OF TREATMENT OF PIPELINE from a taxpayer’s gross income for gain real- EFFECTIVE DATE TRANSPORTATION INCOME (SEC. 507 OF THE ized on the qualifying sale of land, or an in- The provision is effective for taxable years BILL AND SEC. 954 OF THE CODE) beginning after December 31, 2000. terest in land or water, provided the land, or PRESENT LAW interest in land or water, has been held by E. TAX CREDIT FOR OIL AND GAS PRODUCTION Under the subpart F rules, U.S. 10-percent the taxpayer or the taxpayer’s family for at FROM MARGINAL WELLS (SEC. 505 OF THE shareholders of a controlled foreign corpora- least three years prior to the date of sale. A BILL AND SEC. 54A OF THE CODE) tion (‘‘CFC’’) are subject to U.S. tax cur- qualifying sale is a sale to any agency of the PRESENT LAW rently on their shares of certain income Federal Government, a State government, or There is no income tax credit for oil or gas earned by the foreign corporation, whether a local government, or a sale to 501(c)(3) or- production from marginal wells generally. or not such income is distributed to the ganization that is organized and operated Present law does, however, provide a tax shareholders (referred to as ‘‘subpart F in- primarily to meet a qualified conservation credit for production requiring the use of come’’). Subpart F income includes foreign purpose. In addition, to be a qualifying sale, certain tertiary recovery methods (the ‘‘en- base company income, which in turn in- the entity acquiring the land, or interest in hanced oil recovery credit’’) (sec. 43). cludes five categories of income: foreign per- land or water, must provide the taxpayer EXPLANATION OF PROVISION sonal holding company income, foreign base with a letter detailing that the intent of the The provision provides an income tax cred- company sales income, foreign base company purchase is to further a qualified conserva- it equal to $3 per barrel of qualified crude oil services income, foreign base company ship- tion purpose. A qualified conservation pur- produced from a marginal well and 50 cents ping income, and foreign base company oil pose is (1) the preservation of land areas for per 1,000 cubic feet of qualified natural gas related income (sec. 954(a)). outdoor recreation by, or the education of, production. Qualified production is defined Foreign base company oil related income the general public, (2) the protection of a rel- as production up to 1,095 barrels per year (3 is income derived outside the United States atively natural habitat of fish, wildlife, or barrels per day). from the processing of minerals extracted plants, or similar ecosystem, or (3) the pres- The credit applies fully only when oil from oil or gas wells into their primary prod- ervation of open space (including farmland prices are below $14. The credit phases-out ucts; the transportation, distribution, or sale and forest land) where the preservation is for ratably when the price of oil is between $14 of such minerals or primary products; the the scenic enjoyment of the general public or and $17 per barrel for oil (and equivalent disposition of assets used by the taxpayer in pursuant to a clearly delineated Federal, amounts for natural gas). a trade or business involving the foregoing; State or local governmental conservation The credit can be claimed against both the or the performance of any related services. policy that will yield a significant public regular income tax and the alternative min- However, foreign base company oil related benefit. imum tax. income does not include income derived from EFFECTIVE DATE EFFECTIVE DATE a source within a foreign country in connec- The proposal applies to production in tax- tion with: (1) oil or gas which was extracted The provision is effective for sales after able years beginning after December 31, 2000. from a well located in such foreign country December 31, 2003. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9743

B. EXPAND THE ESTATE TAX RULE FOR CON- water bank program authorized by the Water the credit is 1.7 cents/kilowatt hour of elec- SERVATION EASEMENTS (SEC. 602 OF THE Bank Act, (4) the emergency conservation tricity produced and the value of the credit BILL AND SEC. 2031 OF THE CODE) measures program authorized by title IV of is indexed for inflation. The credit applies to PRESENT LAW the Agricultural Credit Act of 1978, (5) the electricity produced by a qualified wind en- agriculture conservation program authorized ergy facility placed in service after Decem- An executor may elect to exclude from the by the Soil Conservation and Domestic Al- ber 31, 1993, and before January 1, 2002, to taxable estate 40 percent of the value of any lotment Act, (6) the great plains conserva- electricity produced by a qualified closed- land subject to a qualified conservation ease- tion program authorized by section 16 of the loop biomass facility placed in service after ment, up to a maximum exclusion of $100,000 Soil Conservation and Domestic Policy Act, December 31, 1992, and before January 1, 2002, in 1998, $200,000 in 1999, $300,000 in 2000, (7) the resource conservation and develop- and to a qualified poultry waste facility $400,000 in 2001, and $500,000 in 2002 and there- ment program authorized by the Bankhead- placed in service after December 31, 1999, and after (sec. 2031(c)). The exclusion percentage Jones Farm Tenant Act and by the Soil Con- before January 1, 2002. The credit is allow- is reduced by 2 percentage points for each servation and Domestic Allotment Act, (8) able for production during the 10-year period percentage point (or fraction thereof) by the forestry incentives program authorized after a facility is originally placed in serv- which the value of the qualified conservation by section 4 of the Cooperative Forestry As- ice. easement is less than 30 percent of the value sistance Act of 1978, (9) any small watershed Closed-loop biomass is the use of plant of the land (determined without regard to program administered by the Secretary of matter, where the plants are grown for the the value of such easement and reduced by Agriculture which is determined by the Sec- sole purpose of being used to generate elec- the value of any retained development retary of the Treasury or his delegate to be tricity. It does not include the use of waste right). substantially similar to the type of programs materials (including, but not limited to, A qualified conservation easement is one described in items (1) through (8), and (10) scrap wood, manure, and municipal or agri- that meets the following requirements: (1) any program of a State, possession of the cultural waste). The credit also is not avail- the land is located within 25 miles of a met- United States, a political subdivision of any able to taxpayers who use standing timber to ropolitan area (as defined by the Office of of the foregoing, or the District of Columbia produce electricity. In order to claim the Management and Budget) or a national park under which payments are made to individ- credit, a taxpayer must own the facility and or wilderness area, or within 10 miles of an uals primarily for the purpose of conserving sell the electricity produced by the facility Urban National Forest (as designated by the soil, protecting or restoring the environ- to an unrelated party. Forest Service of the U.S. Department of Ag- ment, improving forests, or providing a habi- riculture); (2) the land has been owned by the Section 29 tat for wildlife. decedent or a member of the decedent’s fam- Certain fuels produced from ‘‘nonconven- ily at all times during the three-year period EXPLANATION OF PROVISION tional sources’’ and sold to unrelated parties ending on the date of the decedent’s death; The provision expands the types of quali- are eligible for an income tax credit equal to and (3) a qualified conservation contribution fied cost-sharing payments to include pay- $3 (generally adjusted for inflation) per bar- (within the meaning of sec. 170(h)) of a quali- ments under the Partners for Wildlife Pro- rel or BTU oil barrel equivalent (sec. 29) (re- fied real property interest (as generally de- gram. ferred to as the ‘‘section 29 credit’’). Quali- fined in sec. 170(h)(2)(C)) was granted by the EFFECTIVE DATE fied fuels must be produced within the decedent or a member of his or her family. United States. Qualified fuels include: The provision applies to payments received (1) oil produced from shale and tar sands; For purposes of the provision, preservation after the date of enactment. of a historically important land area or a (2) gas produced from geopressured brine, D. INCENTIVE FOR CERTAIN ENERGY EFFICIENT certified historic structure does not qualify Devonian shale, coal seams, tight formations PROPERTY USED IN BUSINESS (SEC. 604 OF as a conservation purpose. (‘‘tight sands’’), or biomass; and THE BILL AND NEW SEC. 199 OF THE CODE) (3) liquid, gaseous, or solid synthetic fuels In order to qualify for the exclusion, a produced from coal (including lignite). qualifying easement must have been granted PRESENT LAW In general, the credit is available only with by the decedent, a member of the decedent’s No special deduction is currently provided respect to fuels produced from wells drilled family, the executor of the decedent’s estate, for expenses incurred for energy efficient or facilities placed in service after December or the trustee of a trust holding the land, no building property. 31, 1979, and before January 1, 1993. An excep- later than the date of the election. To the EXPLANATION OF PROVISION tion extends the January 1, 1993 expiration extent that the value of such land is ex- The provision allows a deduction from in- date for facilities producing gas from bio- cluded from the taxable estate, the basis of come for expenses incurred for energy effi- mass and synthetic fuel from coal if the fa- such land acquired at death is a carryover cient commercial building property. Energy- cility producing the fuel is placed in service basis (i.e., the basis is not stepped-up to its efficient commercial building property is de- before July 1, 1998, pursuant to a binding fair market value at death). Property fi- fined as property that reduces annual energy contract entered into before January 1, 1997. nanced with acquisition indebtedness is eli- and power costs with respect to lighting, The credit may be claimed for qualified gible for this provision only to the extent of cooling, heating, ventilation, and hot water fuels produced and sold before January 1, the net equity in the property. The exclusion supply by 50 percent or more in comparison 2003 (in the case of nonconventional sources from estate taxes does not extend to the to a reference building. A reference building subject to the January 1, 1993 expiration value of any development rights retained by is defined as one which meets the require- date) or January 1, 2008 (in the case of bio- the decedent or donor. ments of Standard 90.1–1999 of the American mass gas and synthetic fuel facilities eligible EXPLANATION OF PROVISION Society of Heating, Refrigerating, and Air for the extension period). The bill expands the availability of quali- Conditioning Engineers and the Illuminating EXPLANATION OF PROVISION fied conservation easements by eliminating Engineering Society of North America. The The bill provides that the present-law tax the geographical boundary restrictions. maximum deduction would be $2.25 per credit for electricity produced by wind, Under the bill, the land qualifies without re- square foot. For all property eligible for the closed-loop biomass, and poultry waste fa- gard to the distance from which the land is deduction, the depreciable basis of the prop- cilities is expanded to include electricity situated from a metropolitan area, national erty is reduced by the amount of the deduc- produced from certain other biomass (in ad- park, wilderness area, or Urban National tion. For public property, such as schools, dition to closed-loop biomass and poultry Forest. the Secretary shall issue regulations to waste) and electricity produced from landfill EFFECTIVE DATE allow the deduction to be allocated to the gas. Taxpayers producing electricity from person primarily responsible for designing other biomass or landfill gas may claim The provision is effective for estates of de- the property in lieu of the public entity cedents dying after December 31, 2001. credit for production of electricity for three owner. years commencing on the later of January 1, C. COST-SHARING PAYMENTS UNDER THE PART- EFFECTIVE DATE 2001, or the date the facility is placed in serv- NERS FOR WILDLIFE PROGRAM (SEC. 603 OF The deduction is effective for taxable years ice. THE BILL AND SEC. 126 OF THE CODE) beginning after December 31, 2000, and before ‘‘Other biomass’’ is defined as solid non- PRESENT LAW January 1, 2004. hazardous, cellulose waste material which is Under present law, gross income does not E. EXTENSION AND MODIFICATION OF TAX segregated from other waste materials and include the excludable portion of payments CREDIT FOR ELECTRICITY PRODUCED FROM which is derived from forest resources, but made to taxpayers by federal and state gov- BIOMASS (SEC. 605 OF THE BILL AND SEC. 45 not including old growth timber. The term ernments for a share of the cost of improve- OF THE CODE) includes urban sources such as waste pallets, ments to property under certain conserva- crates, manufacturing and construction tion programs. These programs include pay- PRESENT LAW wood waste, and tree trimmings, or agricul- ments received under (1) the rural clean Section 45 tural sources (including orchard tree crops, water program authorized by section 208(j) of An income tax credit is allowed for the grain, vineyard, legumes, sugar, and other the Federal Water Pollution Control Act, (2) production of electricity from either quali- crop by-products or residues). However, the the rural abandoned mine program author- fied wind energy facilities, qualified ‘‘closed- term does not include unsegregated munic- ized by section 406 of the Surface Mining loop’’ biomass facilities, or qualified poultry ipal solid waste, paper that is commonly re- Control and Reclamation Act of 1977, (3) the waste facilities (sec. 45). The current value of cycled, or certain chemically treated wood S9744 CONGRESSIONAL RECORD — SENATE October 3, 2000 wastes. Qualifying other biomass and landfill Act. The proposals in that legislation in- and a final determination that the account gas facilities are limited to facilities owned clude a tax credit for alternative fuel vehi- will not be collected. Providers of qualified by the taxpayer. cles, a tax credit for retail sales of alter- personal services should not be subject to a A special rule modifies present-law defini- native motor vehicle fuels, and an extension formula that requires the payment of taxes tion of qualified closed-loop biomass facili- of the deduction for certain refueling prop- on receivables that will not be collected. It is ties to include facilities in which electricity erty. The sponsors note the Committee has intended that the Secretary of the Treasury is produced from closed-loop biomass fuels explored these incentives in a hearing and be directed to amend the temporary regula- co-fired with coal. will continue to seek to address these pro- tions to provide a more accurate determina- In the case of other biomass facilities, the posals in appropriate legislation. tion for such qualified personal service pro- credit applies to electricity produced after EFFECTIVE DATE viders of amounts to be excluded from in- December 31, 2000 from facilities that are The credit is available for a hybrid vehicle come that, based on the taxpayer’s experi- placed in service before January 1, 2002 (in- placed in service after December 31, 2003, and ence, will not be collected. In amending such cluding facilities placed in service before the before January 1, 2005. regulations, the Secretary of the Treasury date of enactment of this provision). In the should consider providing flexibility with re- VII. ADDITIONAL TAX PROVISIONS case of landfill gas facilities, the credit ap- spect to any formula used to compute the plies to electricity produced after December A. LIMITATION ON USE OF NON-ACCRUAL EXPE- amount of the exclusion, to address the dif- 31, 2000, from facilities placed in service after RIENCE METHOD OF ACCOUNTING (SEC. 701 OF ferent factual situations of taxpayers. THE BILL AND SEC. 448 OF THE CODE) December 31, 1999, and before January 1, 2002. EFFECTIVE DATE In the case of closed-loop biomass facilities PRESENT LAW The provision is effective for taxable years in which closed-loop biomass fuel is co-fired An accrual method taxpayer generally ending after date of enactment. Any change with coal, the credit applies to electricity must recognize income when all the events in the taxpayer’s method of accounting ne- produced after December 31, 2000, from facili- have occurred that fix the right to receive cessitated as a result of the provision are ties that are placed in service before January the income and the amount of the income treated as a voluntary change initiated by 1, 2002 (including facilities placed in service can be determined with reasonable accuracy. the taxpayer with the consent of the Sec- before the date of enactment of this provi- An accrual method taxpayer may deduct the retary of the Treasury. Any required section sion). amount of any receivable that was pre- 481(a) adjustment is to be taken into account EFFECTIVE DATE viously included in income that becomes over a period not to exceed four years under The provision is effective upon the date of worthless during the year. principles consistent with those in Rev. enactment. Accrual method taxpayers are not required Proc. 98–60. to include in income amounts to be received F. CREDIT FOR CERTAIN ENERGY EFFICIENT B. REPEAL OF SECTION 1706 OF THE TAX for the performance of services which, on the MOTOR VEHICLES (SEC. 606 OF THE BILL AND REFORM ACT OF 1986 (SEC. 702 OF THE BILL) basis of experience, will not be collected (the NEW SEC. 30B OF THE CODE) PRESENT LAW ‘‘non-accrual experience method’’). The PRESENT LAW availability of this method is conditioned on Under present law, determination of Present law does not provide a credit for the taxpayer not charging interest or a pen- whether a worker is an employee or inde- the purchase of hybrid vehicles. However, alty for failure to timely pay the amount pendent contractor is generally made under taxpayers may claim a credit of 10 percent of charged. a common-law test. Section 530 of the Rev- the cost of an electric vehicle up to a max- A cash method taxpayer is not required to enue Act of 1978 provides safe harbors under imum credit of $4,000 (sec. 30). A qualified include an amount in income until it is re- which a service recipient may treat a worker electric vehicle is a vehicle powered pri- ceived. A taxpayer generally may not use the as an independent contractor for employ- marily by an electric motor drawing current cash method if purchase, production, or sale ment tax purposes (regardless of their status from rechargeable batteries, fuel cells, or of merchandise is an income producing fac- under the common-law test) if certain re- quirements are satisfied. One of the require- other portable sources of electrical current. tor. Such taxpayers generally are required to ments of safe-harbor relief under section 530 The credit does not apply to property placed keep inventories and use an accrual method is that the taxpayer (or a predecessor) must in service after December 31, 2004 and is re- of accounting. In addition, corporations (and not have treated any worker holding a sub- duced ratably between 2002 and 2004. partnerships with corporate partners) gen- stantially similar position as an employee Taxpayers may claim an immediate deduc- erally may not use the cash method of ac- for purposes of employment taxes for any pe- tion (expensing) for up to $2,000 of the cost of counting if their average annual gross re- riod after 1977. In determining whether work- a qualified clean-fuel vehicle which is a car ceipts exceed $5 million. An exception to this ers hold substantially similar positions, one and up to $50,000 in the case of certain trucks $5 million rule is provided for qualified per- of the factors that is to be taken into ac- or vans (sec. 179A). For the purpose of the de- sonal service corporations. A qualified per- count is the relationship of the parties, in- duction, gasoline and diesel fuel are not sonal service corporation is a corporation (1) cluding the degree of supervision and control clean-burning fuels. The deduction expires substantially all of whose activities involve of the worker by the taxpayer. after December 31, 2004, and is phased out the performance of services in the fields of Under section 1706 of the Tax Reform Act ratably between 2002 and 2004. health, law, engineering, architecture, ac- of 1986, section 530 safe-harbor relief does not EXPLANATION OF PROVISION counting, actuarial science, performing arts apply to certain technical services per- The bill provides a temporary tax credit or consulting and (2) substantially all of the sonnel. stock of which is owned by current or former for qualified hybrid vehicles, with a re- EXPLANATION OF PROVISION employees performing such services, their chargeable energy system used in business The bill repeals section 1706 of the Tax Re- and for personal use. For vehicles with a re- estates or heirs. Qualified personal service corporations are allowed to use the cash form Act of 1986. Thus, section 530 safe-har- chargeable energy system that provides five bor relief is available with respect to work- method without regard to whether their av- percent to less than 10 percent of the max- ers covered by section 1706, if the require- erage annual gross receipts exceed $5 mil- imum available power, the credit amount is ments of the safe harbor are otherwise satis- lion. $500; for a system that provides 10 percent to fied. The bill does not repeal the consistency less than 20 percent of maximum available EXPLANATION OF PROVISION requirement with respect to workers covered power the credit is $1,000; for a system that The provision provides that the non-ac- by section 1706. provides 20 percent to less than 30 percent of crual experience method of accounting will EFFECTIVE DATE maximum available power, the credit is be available only for amounts to be received The bill is effective for periods beginning $1,500; and for a system that provides 30 per- for the performance of qualified personal after the date of enactment. cent or greater of maximum available power, services. Amounts to be received for all the credit is $2,000. The credit amount is in- other services will be subject to the general C. EXPANSION OF EXEMPTION FROM PERSONAL creased for qualified hybrid vehicles that rule regarding inclusion in income. Qualified HOLDING COMPANY TAX FOR LENDING OR FI- also actively employ a regenerative braking personal services are personal services in the NANCE BUSINESS COMPANIES (SEC. 703 OF system that supplies energy to the recharge- fields of health, law, engineering, architec- THE BILL AND SECTION 542 OF THE CODE) able energy storage system. For a hybrid ve- ture, accounting, actuarial science, per- PRESENT LAW hicle with a regenerative braking system forming arts or consulting. As under present Personal holding companies (‘‘PHC’’) are that provides 20 percent to less than 40 per- law, the availability of this method is condi- subject to a 39.6 percent tax on undistributed cent of the energy available from braking in tioned on the taxpayer not charging interest PHC income. This tax can be avoided by dis- a typical 60 miles per hour to zero miles per or a penalty for failure to timely pay the tributing the income to shareholders, who hour braking event, the additional credit amount charged. then pay shareholder level tax. PHCs are amount is $250, for 40 percent to less than 60 It is believed that the formula contained in closely held companies with at least 60 per- percent, the additional credit would be $500, Temp. Reg. Section 1.448–2T does not clearly cent ‘‘personal holding company income’’ and for 60 percent or greater, the additional reflect the amount of income that, based on (‘‘PHCI’’). This is generally passive income, credit is $1,000. experience, will not be collected for many including interest, dividends, and rents. Cer- In addition, the sponsors note that this qualified personal services providers, espe- tain rent is excluded from the definition, if proposal is one portion of a package of pro- cially for those where significant time rent is at least 50 percent of the adjusted or- posals in the Alternative Fuels Incentives elapses between the rendering of the service dinary gross income of the company and October 3, 2000 CONGRESSIONAL RECORD — SENATE S9745 other undistributed PHCI does not exceed 10 ible, may constitute a deductible contribu- excludes the payments from his or her in- percent of the adjusted ordinary gross in- tion (Treas. Reg. sec. 1.170A–1(g)). Specifi- come (sec. 104). Thus, neither the amount re- come. cally, section 170(j) provides that no chari- ceived for agreeing to the qualified assign- In the case of a group of corporations filing table contribution deduction is allowed for ment of the liability to pay damages, nor the a consolidated return, with certain excep- traveling expenses (including amounts ex- income on the annuity that funds the liabil- tions, the application of the PHC tax to the pended for meals and lodging) while away ity to pay damages, generally is subject to group and any member thereof is generally from home, whether paid directly or by reim- tax. determined on the basis of consolidated in- bursement, unless there is no significant ele- The exclusion for recipients of the periodic come and consolidated PHCI. If any member ment of personal pleasure, recreation, or va- payments received under a structured settle- of the group is excluded from the definition cation in such travel. ment arrangement as damages for personal of a PHC under certain provisions (including EXPLANATION OF PROVISION physical injuries or physical sickness can be one for certain lending or finance busi- contrasted with the treatment of investment The bill allows individuals to claim a de- nesses), then each other member of the group earnings that are not paid as damages. If a duction under section 170 not exceeding is tested separately for PHC status. recipient of damages chooses to receive a $7,500 per taxable year for certain expenses A special rule of present law excludes a lump sum payment (excludable from income incurred in carrying out sanctioned whaling lending or finance business from the defini- under sec. 104), and then to invest it himself, activities. The deduction is available only to tion of a PHC if certain requirements are generally the earnings on the investment are an individual who is recognized by the Alas- met. At least 60 percent of its income must includable in income. For example, if the re- ka Eskimo Whaling Commission as a whal- come from the active conduct of a lending or cipient uses the lump sum to purchase an an- ing captain charged with the responsibility finance business, and no more than 20 per- nuity contract providing for periodic pay- of maintaining and carrying out sanctioned cent of its adjusted gross income may be ments, then a portion of each payment under whaling activities. The deduction is avail- from certain other PHCI. A lending or fi- the annuity contract is includable in income, able for reasonable and necessary expenses nance business does not include a business of and the balance is excludable under present- paid by the taxpayer during the taxable year making loans longer than 144 months (12 law rules based on the ratio of the individ- for (1) the acquisition and maintenance of years). Also, the deductions attributable to ual’s investment in the contract to the ex- whaling boats, weapons, and gear used in this active lending or finance business (but pected return on the contract (sec. 72(b)). sanctioned whaling activities, (2) the sup- not including interest expense) must be at Present law provides that the payments to plying of food for the crew and other provi- least 5 percent of income over $500,000 (plus the injured person under the qualified as- sions for carrying out such activities, and (3) 15 percent of income under that amount). signment cannot be accelerated, deferred, in- storage and distribution of the catch from EXPLANATION OF PROVISION creased, or decreased by the recipient. Con- such activities. sistent with these requirements, it is under- The provision modifies the personal hold- For purposes of the provision, the term stood that contracts under structured settle- ing company exclusion for lending or finance ‘‘sanctioned whaling activities’’ means sub- ment arrangements generally contain anti- companies to provide that, in determining sistence bowhead whale hunting activities assignment clauses. It is understood, how- whether a member of an affiliated group (as conducted pursuant to the management plan ever, that injured persons may nonetheless defined in section 1504(a)(1)) filing a consoli- of the Alaska Eskimo Whaling Commission. be willing to accept discounted lump sum dated return is a lending or finance com- EFFECTIVE DATE payments from certain ‘‘factoring’’ compa- pany, only corporations engaged in a lending The provision is effective for taxable years nies in exchange for their payment streams. or finance business are taken into account, ending after December 31, 2000. The tax effect on the parties of these trans- and all such companies are aggregated for actions may not be completely clear under purposes of this determination. The effect of E. TREATMENT OF PURCHASE OF STRUCTURED present law. this rule is to treat a corporation as a lend- SETTLEMENTS (SEC. 705 OF THE BILL AND ing or finance company if all companies en- NEW SEC. 5891 OF THE CODE) EXPLANATION OF PROVISION gaged in a lending or finance business in the PRESENT LAW The provision generally imposes an excise affiliated group, in the aggregate, satisfy the Present law provides tax-favored treat- tax on any person acquiring a payment requirements of the exclusion. ment for structured settlement arrange- stream under a structured settlement ar- The provision also repeals the business ex- ments for the payment of damages on ac- rangement. The amount of the excise tax is pense requirement and the limitation on the count of personal injury or sickness. 40 percent of the excess of (1) the maturity of loans made by a lending or fi- Under present law, an exclusion from gross undiscounted amount of the payment stream nance business. income is provided for amounts received for acquired, over (2) the total amount actually The provision also broadens the definition agreeing to a qualified assignment to the ex- paid. of a lending or finance business to include tent that the amount received does not ex- The 40 percent excise tax does not apply, providing financial or investment advisory ceed the aggregate cost of any qualified however, if the transfer is approved in ad- services, as well as engaging in leasing, in- funding asset (sec. 130). A qualified assign- vance in a final court order (or order of the cluding entering into leases and/or pur- ment means any assignment of a liability to responsible administrative authority) that chasing, servicing, and/or disposing of leases make periodic payments as damages (wheth- finds: (1) that the transaction does not con- and leased assets. er by suit or agreement) on account of a per- travene any Federal or State statute or the Rents that are not derived from the active sonal injury or sickness (in a case involving order of any court or responsible administra- and regular conduct of a lending or finance physical injury or physical sickness), pro- tive authority; and (2) is in the best interest business would continue to be treated under vided the liability is assumed from a person of the payee, taking into account the welfare the present law personal holding company who is a party to the suit or agreement, and and support of the payee’s dependents. Rules income rules. the terms of the assignment satisfy certain are provided for determining the applicable State statute. EFFECTIVE DATE requirements. Generally, these requirements are that (1) the periodic payments are fixed The provision also provides that the acqui- The provision is effective for taxable years sition transaction does not affect the appli- beginning after December 31, 2000. as to amount and time; (2) the payments cannot be accelerated, deferred, increased, or cation of certain present-law rules, if those D. CHARITABLE CONTRIBUTION DEDUCTION FOR decreased by the recipient; (3) the assignee’s rules were satisfied at the time the struc- CERTAIN EXPENSES INCURRED IN SUPPORT OF obligation is no greater than that of the as- tured settlement was entered into. The rules NATIVE ALASKAN SUBSISTENCE WHALING signor; and (4) the payments are excludable are section 130 (relating to an exclusion from (SEC. 704 OF THE BILL AND SEC. 170 OF THE by the recipient under section 104(a)(2) as gross income for personal injury liability as- CODE) damages on account of personal injuries or signments), section 72 (relating to annu- PRESENT LAW sickness. ities), sections 104(a)(1) and (2) (relating to In computing taxable income, individuals A qualified funding asset means an annuity an exclusion for amounts received under who do not elect the standard deduction may contract issued by an insurance company li- workers’ compensation acts and for damages claim itemized deductions, including a de- censed in the U.S., or any obligation of the on account of personal physical injuries or duction (subject to certain limitations) for United States, provided the annuity contract physical sickness), and section 461(h) (relat- charitable contributions or gifts made dur- or obligation meets statutory requirements. ing to the time of economic performance in ing the taxable year to a qualified charitable An annuity that is a qualified funding asset determining the taxable year of a deduc- organization or governmental entity (sec. is not subject to the rule requiring current tion). 170). Individuals who elect the standard de- inclusion of the income on the contract EFFECTIVE DATE duction may not claim a deduction for chari- which generally applies to annuity contract The provision generally is effective for ac- table contributions made during the taxable holders that are not natural persons (e.g., quisition transactions entered into on or year. corporations) (sec. 72(u)(3)(C)). In addition, after 30 days following enactment. A transi- No charitable contribution deduction is al- when the payments on the annuity are re- tion rule applies during the period from that lowed for a contribution of services. How- ceived by the structured settlement com- date to July 1, 2002. If no applicable State ever, unreimbursed expenditures made inci- pany and included in income, the company law (relating to the best interest of the dent to the rendition of services to an orga- generally may deduct the corresponding pay- payee) applies to a transfer during that pe- nization, contributions to which are deduct- ments to the injured person, who, in turn, riod, then the exception from the 40 percent S9746 CONGRESSIONAL RECORD — SENATE October 3, 2000 excise tax is available without the otherwise proach to achieving that goal. I ask the state, as do examples of the first required court (or administrative) order, pro- unanimous consent that a copy of the expansion in the 1830s. Together they vided certain disclosure requirements are bill be printed in the RECORD. show us one of the first great public met. Under the transition rule, the person There being no objection, the bill was works projects in this country, the acquiring the structured settlement pay- ments is required to disclose in advance to ordered to be printed in the RECORD, as means by which many thousands of the payee: (1) the amounts and due dates of follows: settlers moved west and many tons of the payments to be transferred; (2) the ag- S. 3153 food and raw materials moved east. gregate amount to be transferred; (3) the Be it enacted by the Senate and House of Rep- The Erie Canal created the first effec- consideration to be received by the payee; (4) resentatives of the United States of America in tive means of interstate commerce in the discounted present value of the trans- Congress assembled, the nation and realigned the relation- ferred payments; and (5) the expenses to be SECTION 1. CONVEYANCE OF AIR FORCE PROP- ship among regions. In conjunction paid by the payee or deducted from the pay- ERTY TO ROOSEVELT GENERAL HOS- with the Hudson River it fueled the ee’s proceeds. PITAL, PORTALES, NEW MEXICO. growth of New York City. Put simple, The provision providing that the acquisi- (a) AUTHORITY.—The Secretary of the Air New York would not have become the tion transaction does not affect the applica- Force is authorized to convey to the Roo- tion of certain present-law rules is effective Empire State without it. sevelt General Hospital, Portales, New Mex- The canal today is primarily a rec- for transactions entered into before, on, or ico, without consideration, and without re- after the 30th day following enactment. gard to title II of the Federal Property and reational resource. Thanks to the Administrative Services Act of 1949, all Great Lakes Water Quality Agreement By Mr. DOMENICI: right, title, and interest of the United States of 1972, the water flowing out of Lake S. 3153. A bill to authorize the Sec- in any personal property of the Air Force Erie is much cleaner than it once was, retary of the Air force to convey cer- that the Secretary determines— making boating and recreation along tain excess personal property of the Air (1) is appropriate for use by the Roosevelt the canal much more enjoyable. Today force to Roosevelt General Hospital, General Hospital in the operation of that my colleague Senator SCHUMER and I Portales, New Mexico; to the Com- hospital; and are introducing a bill that would estab- mittee on Armed Services. (2) is excess to the needs of the Air Force. (b) ADDITIONAL TERMS AND CONDITIONS.— lish the Erie Canalway National Herit- CONVEYANCE OF AIR FORCE PROPERTY TO ROO- The Secretary may require any additional age Corridor. The National Park Serv- SEVELT GENERAL HOSPITAL, PORTALES, NEW terms and conditions in connection with any ice conducted a special resource study MEXICO conveyance under subsection (a) that the and found that the canal system ‘‘con- Mr. DOMENICI. Mr. President, I rise Secretary considers appropriate to protect tains resources and represents themes today to introduce legislation of im- the interests of the United States. that are of national significance.’’ portance to military members serving Moreover, ‘‘no single unit (of the Park at Cannon Air Force Base and the com- Mr. MOYNIHAN (for himself and Service) now exists that can offer as munity serving that Air Force Base. Mr. SCHUMER): complete a portrait of the development This bill would allow the Secretary of S. 3154. A bill to establish the Erie of the United States from the last part the Air Force to convey hospital equip- Canalway National Heritage Corridor of the 18th through the early 20th cen- ment from a closed hospital facility at in the State of New York, and for other turies.’’ Cannon to a new public hospital in purposes; to the Committee on Energy This designation would provide Park Portales, New Mexico. and Natural Resources. Service resources and some funding This is another win-win possibility ERIE CANAL NATIONAL HERITAGE CORRIDOR that would help improve education, for the local Air Force personnel and Mr. MOYNIHAN. Mr. President, in historic preservation, open space pro- the surrounding community. The hos- April, 1808, Secretary of the Treasury tection, and trail development along pital at Cannon Air Force Base was Albert Gallatin proposed to the Senate the canal corridor. I believe it would be closed several years ago. However, the a national system of roads and canals, a great benefit for those cities, towns, equipment remains at that facility and an idea feasible because payment of the and residents along the canal system. I has been collecting dust since the fa- National debt was within reach. It was also believe no other corridor deserves cility’s closure. a time for thinking big. A canal be- this designation as much. I ask my col- A new, state-of-the-art hospital is tween the Hudson River and Lake Erie leagues for their support, and I ask now being built to serve Roosevelt was one of his recommendations. As as- that the text of the bill be printed in County citizens. While the County has semblyman from Onondaga County, the RECORD. taken tremendous strides towards es- Joshua Forman, traveled to Wash- There being no objection, the bill was tablishing a first-rate hospital, excess ington to tell President Jefferson that ordered to be printed in the RECORD, as equipment from the Air Force Base New York was ready to proceed with a follows: would help ameliorate immediate costs canal 350 miles through the wilderness. S. 3154 of fully equipping the new hospital. In Jefferson said ‘‘. . . it is little short of Be it enacted by the Senate and House of Rep- addition, service members and their madness to think of it at this day,’’ resentatives of the United States of America in families who reside in Portales will and later wrote that New York had an- Congress assembled, certainly make use of the new hospital ticipated by a full century the means SECTION 1. SHORT TITLE; DEFINITIONS. facility in their area. to build such a waterway. (a) SHORT TITLE.—This Act may be cited as The Wing Commander and Medical New York proceeded on its own. Sev- the ‘‘Erie Canalway National Heritage Cor- ridor Act of 2000’’. Commander at Cannon Air Force Base enteen years and $7,143,789 later we had (b) DEFINITIONS.—For the purposes of this agree that this is a beneficial arrange- our canal, the Erie Canal. Towns Act, the following definitions shall apply: ment. They have met with local com- sprang up along the way, often at the (1) ERIE CANALWAY.—The term ‘‘Erie munity leaders and civilian hospital locks, and prospered. Lockport, Canalway’’ shall mean the 524 miles of navi- administrators to carefully review Spencerport, Fairport, Macedon, Utica, gable canal that comprise the New York what equipment from the closed Air Canajoharie, Scotia. Then the railroads State Canal System, including the Erie, Ca- Force facility should be transferred to came, and some could not maintain yuga and Seneca, Oswego and Champlain ca- nals, as well as, the historic alignments of the new community hospital. Everyone that prosperity. The canal was rebuilt these canals including the cities of Albany agrees that this is a positive action to and enlarged between 1835 and 1862 to and Buffalo. strengthen relations and provide better accommodate larger vessels. At the (2) CANALWAY PLAN.—The term ‘‘Canalway medical care for both civilian and mili- turn of the 20th century much of the Plan’’ shall mean the comprehensive preser- tary community members. original channel was abandoned and a vation and management plan for the Cor- Mr. President, the Air Force is striv- new one was created by greatly alter- ridor required under section 6. ing to explore novel, beneficial ar- ing natural waterways. This canal sys- (3) COMMISSION.—The term ‘‘Commission’’ rangements with local civilian commu- tem continued to support considerable shall mean the Erie Canalway National Her- itage Corridor Commission established under nities to provide medical care for its freight traffic until the opening of the section 4. personnel. This bill, which is entirely St. Lawrence Seaway in 1959. (4) CORRIDOR.—The term ‘‘Corridor’’ shall discretionary, but would expedite the Today many segments and fragments mean the Erie Canalway National Heritage process, is an easy, common sense ap- of the original canal still exist across Corridor established under section 3. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9747

(5) GOVERNOR.—The term ‘‘Governor’’ shall SEC. 3. THE ERIE CANALWAY NATIONAL HERIT- term of two years and seven shall be for a mean the Governor of the State of New AGE CORRIDOR. term of three years. Any member of the York. (a) ESTABLISHMENT.—To carry out the pur- Commission appointed for a definite term (6) SECRETARY.—The term ‘‘Secretary’’ poses of this act there is established the Erie may serve after expiration of the term until shall mean the Secretary of the Interior. Canalway National Heritage Corridor in the the successor of the member is appointed. SEC. 2. FINDINGS AND PURPOSES. State of New York. Any member appointed to fill a vacancy (a) FINDINGS.—The Congress finds that— (b) BOUNDARIES.—The boundaries of the shall serve for the remainder of the term for (1) the year 2000 marks the 175th Anniver- Corridor shall include those lands generally which the predecessor was appointed. Any sary of New York State’s creation and stew- depicted on a map entitled ‘‘Boundaries of vacancy on the Commission shall be filled in ardship of the Erie Canalway for commerce, Canalway Communities’’ numbered ERCA the same manner in which the original ap- transportation and recreational purposes, es- llll and dated llll. This map shall be pointment was made. tablishing the network which made New on file and available for public inspection in (d) COMPENSATION.—Members of the Com- York the ‘‘Empire State’’ and the Nation’s the appropriate office of the National Park mission shall receive no compensation for premier commercial and financial center; Service, the office of the Commission, and their service on the Commission. Members of (2) the canals and adjacent areas that com- the office of the New York State Canal Cor- the Commission, other than employees of the prise the Erie Canalway are a nationally sig- poration in Albany, New York. State and Canal Corporation, while away nificant resource of historic and recreational (c) BOUNDARY REVISIONS.—The boundaries from their homes or regular places of busi- value, which merit Federal recognition and of the Corridor may be revised by an amend- ness to perform services for the Commission, assistance; ment to this Act pursuant to the request of shall be allowed travel expenses, including (3) the Erie Canalway was instrumental in the Secretary upon approval of the Commis- per diem in lieu of subsistence, in the same the establishment of strong political and cul- sion. manner as persons employed intermittently tural ties between New England, upstate (d) OWNERSHIP AND OPERATION OF THE NEW in government service are allowed under sec- New York and the old Northwest and facili- YORK STATE CANAL SYSTEM.—Nothing in this tion 5703 of title 5, United States Code. (e) ELECTION OF OFFICES.—The Commission tated the movement of ideas and people en- Act shall be construed to alter the owner- shall elect the chairperson and the vice suring that social reforms like the abolition ship, operation, or management of the New York State Canal System. chairperson on an annual basis. The vice of slavery and the women’s rights movement chairperson shall serve as the chairperson in spread across upstate New York to the rest SEC. 4. THE ERIE CANALWAY NATIONAL HERIT- AGE CORRIDOR COMMISSION. the absence of the chairperson. of the country; (f) QUORUM AND VOTING.—Fourteen mem- (4) the construction of the Erie Canalway (a) ESTABLISHMENT.—There is established the Erie Canalway National Heritage Cor- bers of the Commission shall constitute a was considered a supreme engineering feat, quorum but a lesser number may hold hear- and most American canals were modeled ridor Commission. The purpose of the Com- mission shall be— ings. Any member of the Commission may after New York State’s canal; vote by means of a signed proxy exercised by (1) to work with Federal, State and local (5) at the time of construction, the Erie another member of the Commission, how- authorities to develop and implement the Canalway was the largest public works ever, any member voting by proxy shall not Canalway Plan; and project ever undertaken by a state, resulting be considered present for purposes of estab- (2) to foster the integration of canal-re- in the creation of critical transportation and lishing a quorum. For the transaction of any commercial routes to transport passengers lated historical, cultural, recreational, sce- business or the exercise of any power of the and goods; nic, economic and community development Commission, the Commission shall have the (6) the Erie Canalway played a key role in initiatives within the Corridor. power to act by a majority vote of the mem- EMBERSHIP.—The Commission shall be turning New York City into a major port and (b) M bers present at any meeting at which a New York State into the preeminent center composed of 27 members as follows: quorum is in attendance. for commerce, industry, and finance in North (1) The Secretary of the Interior, ex-officio (g) MEETINGS.—The Commission shall meet America and provided a permanent commer- or his/her designee. at least quarterly at the call of the chair- cial link between the Port of New York and (2) Seven members, each of whom rep- person or 14 of its members. Notice of Com- the cities of eastern Canada, a cornerstone of resents 1 of the following agencies or those mission meetings and agendas for the meet- the peaceful relationship between the two agencies’ successors: The New York State ings shall be published in local newspapers countries; Secretary of State, the Commissioners of the throughout the Corridor. Meetings of the (7) the Erie Canalway proved the depth and New York State Department of Environ- Commission shall be subject to section 552b force of American ingenuity, solidified a na- mental Conservation, the New York State of title 5, United States Code (relating to tional identity, and found an enduring place Office of Parks, Recreation and Historic open meetings). in American legend, song, and art; Preservation, the New York State Depart- (h) POWERS OF THE COMMISSION.—To the ex- (8) there is national interest in the preser- ment of Agriculture and Markets, the New tent that Federal funds are appropriated, the vation and interpretation of the Erie York State Department of Transportation, Commission is authorized— Canalway’s important historical, natural, and the Chairpersons of the New York State (1) to procure temporary and intermittent cultural, and scenic resources; and Canal Corporation, and the Empire State De- services and administrative facilities at (9) partnerships among Federal, State, and velopment Corporation; or their respective rates determined to be reasonable by the local governments and their regional enti- designees. Commission to carry out the responsibilities ties, nonprofit organizations, and the private (3) The remaining 19 members who reside of the Commission; sector offer the most effective opportunities within the Corridor and are geographically (2) to request and accept the services of for the preservation and interpretation of dispersed throughout the Corridor shall be personnel detailed from the State of New the Erie Canalway. from local governments and the private sec- York or any political subdivision, and to re- (b) PURPOSES.—The purposes of this Act tor with knowledge of tourism, economic and imburse the State or political subdivision for are— community development, regional planning, such services; (1) to designate the Erie Canalway Na- historic preservation, cultural or natural re- (3) to request and accept the services of tional Heritage Corridor; source management, conservation, recre- any Federal agency personnel, and to reim- (2) to provide for and assist in the identi- ation, and education or museum services. burse the Federal agency for such services; fication, preservation, promotion, mainte- These members will be appointed by the Gov- (4) to appoint and fix the compensation of nance and interpretation of the historical, ernor no later than 6 months after the date staff to carry out its duties; natural, cultural, scenic, and recreational re- of enactment of this Act as follows: (5) to enter into cooperative agreements sources of the Erie Canalway in ways that (A) Ten members based on a recommenda- with the State of New York, with any polit- reflect its national significance for the ben- tion from each member of the United States ical subdivision of the State, or any person efit of current and future generations; House of Representatives whose district for the purposes of carrying out the duties of (3) to promote and provide access to the shall encompass the Corridor. Each shall be the Commission; Erie Canalway’s historical, natural, cultural, a resident of the district from which they (6) to make grants to assist in the prepara- scenic and recreational resources; shall be recommended. tion and implementation of the Canalway (4) to provide a framework to assist the (B) Two members based on a recommenda- Plan; State of New York, its units of local govern- tion from each United States Senator from (7) to seek, accept, and dispose of gifts, be- ment, and the communities within the Erie New York State. quests, grants, or donations of money, per- Canalway in the development of integrated (C) Seven members who shall be residents sonal property, or services, received from cultural, historical, recreational, economic, of any county constituting the Corridor. One any source; øFor purposes of section 170(c) of and community development programs in such member shall be a member of the Canal the Internal Revenue Code of 1986, any gift order to enhance and interpret the unique Recreationway Commission other than an to the Commission shall be deemed to be a and nationally significant resources of the ex-officio member. gift to the United States.¿ Erie Canalway; and (c) APPOINTMENTS AND VACANCIES.—Mem- (8) to assist others in developing edu- (5) to authorize Federal financial and tech- bers of the Commission other than ex-officio cational, informational, and interpretive nical assistance to the Commission to serve members shall be appointed for terms of 3 programs and facilities, and other such ac- these purposes for the benefit of the people years. Of the original appointments, six shall tivities that may promote the implementa- of the State of New York and the nation. be for a term of one year, six shall be for a tion of the Canalway Plan; S9748 CONGRESSIONAL RECORD — SENATE October 3, 2000 (9) to hold hearings, sit and act at such (6) ensuring that clear, consistent signs prove or disapprove the Canalway Plan not times and places, take such testimony, and identifying access points and sites of interest later than 90 days after receiving the receive such evidence, as the Commission are put in place in the Corridor. Canalway Plan. may consider appropriate; øThe Commission (c) ANNUAL REPORTS AND AUDITS.—For any (c) DISAPPROVAL OF CANALWAY PLAN.—If may not issue subpoenas or exercise any sub- year in which Federal funds have been re- the Secretary or the Governor do not ap- poena authority.¿ ceived under this Act, the Commission shall prove the Canalway Plan, the Secretary or (10) to use the United States mails in the submit an annual report and shall make the Governor shall advise the Commission in same manner as other departments or agen- available an audit of all relevant records to writing within 90 days the reasons therefor cies of the United States; the Governor and the Secretary identifying and shall indicate any recommendations for (11) to request and receive from the Admin- its expenses and any income, the entities to revisions. Following completion of any nec- istrator of General Services, on a reimburs- which any grants or technical assistance essary revisions of the Canalway Plan, the able basis, such administrative support serv- were made during the year for which the re- Secretary and the Governor shall have 90 ices as the Commission may request; and port was made, and contributions by other days to either approve or disapprove of the (12) to establish such advisory groups as parties toward achieving Corridor purposes. revised Canalway Plan. (d) AMENDMENTS TO CANALWAY PLAN.—The the Commission deems necessary. SEC. 6. CANALWAY PLAN. Secretary and the Governor shall review sub- (i) ACQUISITION OF PROPERTY.—Except as (a) CANALWAY PLAN REQUIREMENTS.—The provided for leasing administrative facilities stantial amendments to the Canalway Plan. Canalway Plan shall— Funds appropriated pursuant to this Act under subsection (h)(1), the Commission may (1) include a review of existing plans for not acquire any real property or interest in may not be expended to implement the the Corridor, including the Canal changes made by such amendments until the real property. Recreationway Plan and Canal Revitaliza- (j) TERMINATION.—The Commission and Secretary and the Governor approves the tion Program, and incorporate them to the amendments. this Act shall terminate on the day occur- extent feasible to ensure consistency with SEC. 7. DUTIES OF THE SECRETARY. ring 10 years after the date of the enactment local, regional and state planning efforts; (a) IN GENERAL.—The Secretary is author- of this Act. (2) provide a strategy for the thematic in- ized to assist the Commission in the prepara- SEC. 5. DUTIES OF THE COMMISSION. ventory, survey, and evaluation of historic tion of the Canalway Plan with a focus on (a) PREPARATION OF CANALWAY PLAN.—Not properties that should be conserved, re- the comprehensive interpretive plan as re- later than 3 years after the Commission re- stored, developed, or maintained because of quired under section 6(a)(4). ceives Federal funding for this purpose, the their natural, cultural, or historic signifi- (b) TECHNICAL ASSISTANCE.—Pursuant to an Commission shall prepare and submit a com- cance within the Corridor in accordance with approved Canalway Plan, the Secretary is prehensive preservation and management the regulations for the National Register of authorized to enter into cooperative agree- Canalway Plan for the Corridor to the Sec- Historic Places; ments with, provide technical assistance to retary and the Governor for review and ap- (3) identify public and private-sector pres- and award grants to the Commission to pro- proval. In addition to the requirements out- ervation goals and strategies for the Cor- vide for the preservation and interpretation lined for the Canalway Plan in section 6, the ridor; of the natural, cultural, historical, rec- Canalway Plan shall incorporate and inte- (4) include a comprehensive interpretive reational, and scenic resources of the Cor- grate existing Federal, State, and local plans plan that identifies, develops, supports, and ridor. to the extent appropriate regarding historic enhances interpretation and education pro- (c) EARLY ACTIONS.—After the date of the preservation, conservation, education and in- grams within the Corridor that may enactment of this Act, but prior to approval terpretation, community development, and include— of the Canalway Plan, with the approval of tourism-related economic development for (A) research related to the construction the Commission, the Secretary may provide the Corridor that are consistent with the and history of the canals and the cultural technical and financial assistance for early purposes of this Act. The Commission shall heritage of the canal workers, their families, actions that are important to the purposes of solicit public comment on the development those that traveled along the canals, the as- this Act and that protect and preserve re- of the Canalway Plan. sociated farming activities, the landscape, sources and to undertake an educational and (b) IMPLEMENTATION OF CANALWAY PLAN.— and the communities; interpretive program of the story and his- After the Commission receives Federal fund- (B) documentation of and methods to sup- tory of the Erie Canalway. ing for this purpose, and after review and port the perpetuation of music, art, poetry, (d) CANALWAY PLAN IMPLEMENTATION.— upon approval of the Canalway Plan by the literature and folkways associated with the Upon approval of the Canalway Plan, the Secretary and the Governor, the Commission canals; and Secretary is authorized to implement those shall— (C) educational and interpretative pro- activities that the Canalway Plan has identi- (1) undertake actions to implement the grams related to the Erie Canalway devel- fied that are the responsibility of the Sec- Canalway Plan so as to assist the people of oped in cooperation with State and local retary or agent of the Secretary to under- the State of New York in enhancing and in- governments, educational institutions, and take in the implementation of the Canalway terpreting the historical, cultural, edu- non-profit institutions; Plan. cational, natural, scenic, and recreational (5) include a strategy to further the rec- (e) DETAIL.—Each fiscal year during the ex- potential of the Corridor identified in the reational development of the Corridor that istence of the Commission and upon the re- Canalway Plan; and will enable users to uniquely experience the quest of the Commission, the Secretary shall (2) support public and private efforts in canal system; detail to the Commission, on a nonreimburs- conservation and preservation of the (6) propose programs to protect, interpret able basis, 2 employees of the Department of Canalway’s cultural and natural resources and promote the Corridor’s historical, cul- the Interior to enable the Commission to and economic revitalization consistent with tural, recreational, educational, scenic and carry out the Commission’s duties with re- the goals of the Canalway Plan. natural resources; gard to the preparation and approval of the (c) PRIORITY ACTIONS.—Priority actions (7) include a plan to inventory canal re- Canalway Plan. Such detail shall be without which may be carried out by the Commission lated natural, cultural and historic sites and interruption or loss of civil service status, under subsection (b) may include— resources located in the Area; benefits, or privileges. (1) assisting in the appropriate preserva- (8) recommend Federal, State, and local (f) REPORT.—Not later than 2 years after tion treatment of the remaining elements of strategies and policies to support economic the approval of the Canalway Plan, the Sec- the original Erie Canal; development, especially tourism-related de- retary shall submit to Congress a report rec- (2) assisting the National Park Service, the velopment and recreation, consistent with ommending whether the educational/inter- State, and local governments, and nonprofit the purposes of the Corridor; pretive sites identified by the Commission organizations in designing, establishing and (9) develop criteria and priorities for finan- meet the criteria for designation as a unit of maintaining visitor centers, museums, and cial preservation assistance; the National Park System as required by other interpretive exhibits in the Corridor; (10) identify and foster strong cooperative Public Law 105–391 (112 Stat. 3501; 16 (3) assisting in the public awareness and relationships between the National Park U.S.C.1a–5 note). appreciation for the historic, cultural, nat- Service, the New York State Canal Corpora- SEC. 9. DUTIES OF OTHER FEDERAL ENTITIES. ural, scenic, and recreational resources and tion, other Federal and State agencies, and Any Federal entity conducting or sup- sites in the Corridor; non-governmental organizations; porting any activity directly affecting the (4) assisting the State of New York, local (11) recommend specific areas to the Na- Corridor, and any unit of government acting governments, and nonprofit organizations in tional Park Service for development of inter- pursuant to a grant of Federal funds or a the preservation and restoration of any his- pretive, educational, and technical assist- Federal permit or agreement conducting or toric building, site, or district in the Cor- ance centers associated with the Corridor; supporting such activities, may— ridor; and (1) consult with the Secretary and the (5) encouraging, by appropriate means, en- (12) contain a program for implementation Commission with respect to such activities; hanced economic development in the Cor- of the Canalway Plan by all necessary par- (2) cooperate with the Secretary and the ridor consistent with the goals of the ties. Commission in carrying out their duties Canalway Plan and the purposes of this Act; (b) APPROVAL OF THE CANALWAY PLAN.— under this Act and coordinate such activities and The Secretary and the Governor shall ap- with the carrying out of such duties; and October 3, 2000 CONGRESSIONAL RECORD — SENATE S9749 (3) conduct or support such activities in a The deeds of Oskar Schindler, a Ger- has also been awarded France’s top ci- manner consistent with the Canalway Plan man factory owner immortalized by vilian honor, the ‘‘Croix de Chevalier unless the Federal entity, after consultation such authors as Thomas Keneally and de la Legion d’Honneur.’’ Yet sadly, with the Secretary and the Commission, de- film maker Steven Spielberg, have in- Varian Fry’s heroism and bravery have termines there is no practicable alternative. spired millions of people around the yet to be officially recognized by the SEC. 10. SAVINGS PROVISIONS. world. During the Nazi occupation of American government. (a) AUTHORITY OF GOVERNMENTS.—Nothing in this Act shall be construed to modify, en- Poland, Mr. Schindler put his life on Mr. President, the Talmud states large, or diminish any authority of the Fed- the line and demonstrated that one that, ‘‘Whoever saves a single life saves eral, State, or local governments to regulate person truly can make a world of dif- the world entire.’’ As we are left to any use of land as provided for by law or reg- ference. Mr. Schindler acquired an wonder and mourn what the world has ulation. enamelware factory in Zablocie, on the lost in the lives of those who perished (b) ZONING OR LAND.—Nothing in this Act outskirts of Krakow. The factory, during the Holocaust, we rejoice in the shall be construed to grant powers of zoning which produced mess kits and field company and contributions of their or land use to the Commission. survivors. We are enriched not only by (c) LOCAL AUTHORITY AND PRIVATE PROP- kitchenware for the Nazi army, was the presence of the survivors, but by ERTY.—Nothing in this Act shall be con- staffed by Jews drawn from the strued to affect or to authorize the Commis- Krakow ghetto. When the Jews of the example that Oskar Schindler and sion to interfere with— Krakow were transferred to the Varian Fry set for all of Humanity. (1) the rights of any person with respect to Plaszow concentration camp, Schindler Their actions are a testament to the private property; arranged for his workers to be housed ability of all people to act righteously (2) any local zoning ordinance or land use at the factory. After the factory was and courageously even under the worst plan of the State of New York or political disbanded and the workers sent to the of circumstances. subdivision thereof; or The heroic deeds of Oskar Schindler (3) any State or local canal related devel- camp, Schindler used his connections and personal fortune to secure their re- and Varian Fry are sterling examples opment plans including but not limited to of heroism and humanitarianism. It is the Canal Recreationway Plan and the Canal lease and transfer. Revitalization Program. Through his cunning and persever- time the United States government (d) FISH AND WILDLIFE.—The designation of ance in the face of adversity, Oskar recognize and pay tribute to these men the Corridor shall not diminish the author- Schindler succeeded in saving the lives and the noble deeds they performed. ity of the State of New York to manage fish of over 1,200 Jews. One of the individ- Oskar Schindler and Varian Fry are and wildlife, including the regulation of fish- uals whom Schindler saved was Abra- highly deserving of the Congressional ing and hunting within the Corridor. ham Zuckerman, a constituent of mine Gold Medal. I sincerely hope that the SEC. 11. AUTHORIZATION OF APPROPRIATIONS. and a great American in his own right. 106th Congress will take up and pass (a) IN GENERAL.— this resolution. (1) CORRIDOR.—There is authorized to be Mr. Zuckerman knows perhaps better than anyone else what a heroic indi- Mr. President, I ask unanimous con- appropriated for the Corridor not more than sent that the text of the bill be printed $1,000,000 for any fiscal year, to remain avail- vidual Oskar Schindler was. As a build- in the RECORD able until expended. Not more than a total of er, Mr. Zuckerman, along with other . There being no objection, the bill was $10,000,000 may be appropriated for the Cor- Schindler survivors, have honored ordered to be printed in the RECORD, as ridor under this Act. Oskar Schindler with over 20 Schindler follows: (2) COMMISSION.—Additionally, there is au- Courts, Terraces and Plazas through- thorized to be appropriated to the Commis- S. 3155 sion not more than $250,000 annually to carry out New Jersey. Oskar Schindler was named a ‘‘Right- Be it enacted by the Senate and House of Rep- out the duties of the Commission. resentatives of the United States of America in (b) OTHER FUNDING.—In addition to the eous Gentile’’ by Yad Vashem, the Congress assembled, sums authorized in subsection (a), there are Israeli Holocaust Remembrance Au- SECTION 1. FINDINGS. authorized to be appropriated to the Sec- thority, on April 28, 1962. Today, over The Congress makes the following findings: retary of the Interior such sums as are nec- 6,000 descendants of the Jews saved by (1) More than 13,000,000 people were killed essary for the Secretary to undertake in- Schindler live in the United States and during the Holocaust, including Jews, Gyp- terim actions the Secretary is authorized to Europe. I think it is high time that the sies, Slavs (Poles, Ukrainians, and Belo- undertake and that are necessary for the russians), homosexuals, and the disabled— Secretary of the Interior to implement the United States government officially recognize Oskar Schindler’s incredible each exterminated because Adolf Hitler responsibilities of the Department of the In- viewed them as ‘‘subhuman’’ to the Aryan terior outlined in the Canalway Plan. contribution to humanity. Awarding race. him the Congressional Gold Medal is a (2) Nazi persecution, arrests, and deporta- By Mr. LAUTENBERG: fitting way to pay tribute to a man tions were directed against all Jewish fami- S. 3155. A bill to authorize the Presi- who touched the lives of so many peo- lies, as well as many others, without concern dent to award a gold medal on behalf of ple from all over the world. for age. Innocent men, women, and children the Congress to Oskar Schindler and Another remarkable individual who faced starvation, illness, brutal labor, and Varian Fry in recognition of their con- overcame adversity and acted with ex- other indignities until they were consigned tributions to the Nation and humanity; traordinary courage is Varian Fry, an to the gas chambers. to the Committee on Banking, Hous- American editor from New York. Dur- (3) When Germany invaded Poland in 1939, destruction began immediately and in a mer- ing, and Urban Affairs. ing World War II, Mr. Fry volunteered ciless fashion. Jews were herded into crowd- HONORING OSKAR SCHINDLER AND VARIAN FRY to travel to Nazi-occupied Marseilles, ed ghettos, randomly beaten, humiliated, WITH CONGRESSIONAL GOLD MEDALS France, where he helped form the and capriciously murdered. Jewish property Mr. LAUTENBERG. Mr. President, I Emergency Rescue Committee. Work- and businesses were summarily destroyed, or am pleased to submit a resolution hon- ing with a small group of associates, appropriated by the SS, and sold to Nazi ‘‘in- oring Oskar Schindler and Varian Fry, Mr. Fry offered assistance to Jews and vestors’’, one of whom was Oskar Schindler. two individuals to whom approxi- antifascist refugees threatened with (4) Oskar Schindler set up a business in an mately 3,200 individuals owe their lives extradition to Nazi Germany under the old enamel works factory in Poland. His workforce consisted of enslaved Jews from and the world owes a tremendous debt ‘‘Surrender on Demand’’ clause of the the Krakow Ghetto. Schindler learned of the of gratitude. Franco-German Armistice. horrible atrocities committed by Hitler’s re- The tragedy of the Holocaust, which Varian Fry was instrumental in the gime as he got to know some of the forced claimed the lives of more than 13 mil- rescue of approximately 2,000 individ- workers there. In response, he managed to lion people, will forever stand as a uals, including artists Marc Chaggal, convince the Nazis that his factory, and painful reminder of the frailty and Andre Breton and Max Ernst. Mr. Fry more importantly, its trained workers, were value of human life. During this dark was the first American to be awarded vital to the German war effort, thus pre- hour of history, two remarkable indi- the ‘‘Certificate of Honor’’ and the venting their deportation to death camps. viduals among many other heroes, ‘‘Righteous among Nations’’ medal by (5) Oskar Schindler used all of the means at his disposal to ensure the safety of those Oskar Schindler and Varian Fry, over- Yad Vashem in 1996. The United States who worked in his factory. Even his wife came difficult and dangerous cir- Holocaust Memorial Council honored Emilie’s jewels were sold, to buy food, cumstances and risked their lives to Mr. Fry with its highest honor, the Ei- clothes, and medicine for the workers. A se- save their fellow human beings. senhower Liberation Medal in 1991. He cret sanatorium was set up in the factory S9750 CONGRESSIONAL RECORD — SENATE October 3, 2000 with medical equipment purchased on the SEC. 4. STATUS AS NATIONAL MEDALS. owners to alter or destroy endangered black market. There, Emilie Schindler The medals struck pursuant to this Act are species habitat under a long-term looked after the sick and wounded. national medals for purposes of chapter 51 of unmodifiable permit. The bill requires (6) Even though Oskar Schindler had a title 31, United States Code. the best available science, invites more large mansion placed at his disposal close to SEC. 5. FUNDING. the factory, he spent every night in his office public participation, and requires (a) AUTHORITY TO USE FUND AMOUNTS.— adaptive management for development so that he could intervene should the Ge- There is authorized to be charged against the stapo pay a visit. He was detained by the Ge- United States Mint Public Enterprise Fund permit. The developer files a perform- stapo twice, but used his connections to get an amount not to exceed $30,000 to pay for ance bond to cover the costs of all rea- released. the cost of the medals authorized by this sonably foreseeable circumstances (7) With his own life at stake, Schindler Act. (such as wildfires, plant diseases, and employed all his powers of persuasion. He (b) PROCEEDS OF SALE.—Amounts received other natural events that can have dev- bribed, fought, and begged to save Jewish from the sale of duplicate bronze medals astating impacts on weakened popu- men, women, and children from the gas under section 3 shall be deposited in the lations of wildlife). Then a Habitat chambers. United States Mint Public Enterprise Fund. (8) Oskar Shindler saved the lives of 1,200 Conservation Plan Trust Fund is estab- Jews from deportation to Nazi death camps. Mr. LAUTENBERG (for himself, lished to cover all other unforeseeable costs—a safety net for landowners and (9) On April 28, 1962, Oskar Schindler was Mrs. BOXER, Mr. KENNEDY, Mr. named a ‘‘Righteous Gentile’’ by Yad species—while allowing changes to the WELLSTONE, Mr. DODD, Mr. Vashem. permit when needed to protect species. MOYNIHAN, Mr. SCHUMER, Mr. (10) Varian Fry, together with a small The bill also encourages ecosystem KERRY, Mr. TORRICELLI, Mr. group of unlikely associates, succeeded in as- planning on a regional basis, through LEAHY, and Mr. REID): sisting nearly 2,000 artists, musicians, writ- multi-species, multi-landowner plans, ers, scholars, politicians, labor leaders, and S. 3156. A bill to amend the Endan- which is essential since ecosystems do their families to leave hostile territories in gered Species Act of 1973 to ensure the not run along political boundaries. The France, either legally or illegally. This ef- recovery of the declining biological di- bill encourages cooperation between fort came to be called the ‘‘Emergency Res- versity of the United States, to reaf- various levels of government and dif- cue Committee’’. firm and strengthen the commitment (11) Varian Fry offered aid and advice to ferent jurisdictions, by allowing groups of the United States to protect wildlife, Jews and antifascist refugees who found of private landowners to pool re- to safeguard the economic and ecologi- themselves threatened with extradition to sources, and allowing local govern- cal future of children of the United Nazi Germany under Article 19 of the Fran- ments to administer habitat plans. The co-German Armistice—the ‘‘Surrender on States, and to provide certainty to bill streamlines the permit process and Demand clause’’. local governments, communities, and establishes an Office of Technical As- (12) Though risking his personal security individuals in their planning and eco- sistance. The bill also allows small in the face of both Gestapo and Vichy offi- nomic development efforts; to the landowners that have a minimal im- cials, Fry did what was necessary to save as Committee on Environment and Public many of the refugees as possible. pact on endangered species to benefit Works. (13) Varian Fry aided in the rescue of near- from a quick and easy permit process ly 2,000 individuals, including artists Marc ENDANGERED SPECIES RECOVERY ACT and to receive planning assurances. Chaggall, Andre Breton, and Max Ernst. Mr. LAUTENBERG. Mr. President, I The bill clarifies the standards for (14) The United States Holocaust Memorial rise to introduce the Endangered Spe- approving federal actions that may im- Council awarded Varian Fry its highest cies Recovery Act. The bill will update pact endangered or threatened species. honor, the Eisenhower Liberation Medal in the original Endangered Species Act, 1991. Under the existing law, pesticide appli- (15) In 1996, Yad Vashem posthumously provide tax and other incentives for cation, river damming, forest honored Fry as the first American ‘‘Right- landowners, and help increase the num- clearcutting, and other habitat de- eous Among the Nations’’, and the French ber of species that are recovered and struction are judged by their impact on government awarded him the Croix de Chev- taken off the protected list. The bill the survival of imperiled wildlife. The alier de la Legion d’Honneur. has been endorsed by the 380 conserva- bill requires that taxpayer-funded ac- (16) The actions of Oskar Schindler and tion, religious, and scientific organiza- tivities must not reduce the likelihood Varian Fry serve as testimony to all people tions that belong to the Endangered of recovery. In addition, the bill im- that even under the worst of circumstances, Species Coalition. the most ordinary of us can act coura- proves the chances for recovery by geously. Public support for strong endangered identifying specific management ac- (17) Oskar Schindler and Varian Fry are species protection is high. Also, a ma- tions and biological criteria in recov- true heroes and humanitarians, deserving of jority of the nation’s biologists are ery plans, placing deadlines on final re- honor by the United States Government. convinced that a mass extinction of covery plans, and encouraging federal SEC. 2. CONGRESSIONAL GOLD MEDAL. plants and animals is underway. Some agencies to take preventative measures (a) PRESENTATION AUTHORIZED.—The Presi- believe this loss of biological diversity before a species becomes endangered. dent is authorized— will pose a major threat to humans in The bill implements recommenda- (1) to award to Oskar Schindler, post- the coming century. At least one in 8 tions from the National Academy of humously, on behalf of Congress, a gold known plant species (which provide Sciences on improving the scientific medal of appropriate design honoring Oskar medical, commercial, and agricultural basis of important endangered species Schindler in recognition of his contributions benefits) is threatened with extinction. decisions. For unprotected species that to the Nation; and The bill I introduce today includes (2) to award to Varian Fry, posthumously, means providing protection before pop- on behalf of Congress, a gold medal of appro- provisions that will help both land- ulation numbers are too low to recover. priate design honoring Varian Fry in rec- owners and the species themselves. For listed species that means using ognition of his contributions to the Nation. The bill incorporates tax proposals independent scientists to peer review (b) DESIGN AND STRIKING.—For purposes of endorsed by both property-rights and large-scale, multi-species habitat con- the awards referred to in subsection (a), the conservation organizations. The bill es- servation plans. It also means asking Secretary of the Treasury (hereafter in this tablishes a tax exclusion for cost-shar- biologists to set benchmarks and Act referred to as the ‘‘Secretary’’) shall ing payments under the Partners for science-based conservation goals to strike gold medals with suitable emblems, Fish and Wildlife Program, an en- better tell us what it will take to re- devices, and inscriptions, to be determined hanced deduction for the donation of a cover and eventually delist an imper- by the Secretary. conservation easement, an exclusion iled species. SEC. 3. DUPLICATE MEDALS. from the estate tax for property sub- While federal actions already under- The Secretary may strike and sell dupli- ject to an Endangered Species Con- go review to ensure minimal impacts cates in bronze, of the gold medals struck servation Agreement, and an expansion on endangered species, the bill requires pursuant to section 2, under such regulations of the estate tax exclusion for property that federal agencies also make efforts as the Secretary may prescribe, and at a price sufficient to cover the costs thereof, in- subject to a conservation easement. towards further recovery or to consider cluding labor, materials, dies, use of machin- The bill significantly revises the Ad- the cumulative impacts of their ac- ery, overhead expenses, and the cost of the ministration’s current ‘‘No Surprises’’ tions. The bill requires federal agencies gold medals. policy, which allows private land- to help plan for species recovery and October 3, 2000 CONGRESSIONAL RECORD — SENATE S9751 then implement those plans within sidered to be made to a section or other pro- the time the species is listed in accordance their jurisdictions. The bill also re- vision of the Endangered Species Act of 1973 with section 4, on a determination by the quires agencies to consider the impacts (16 U.S.C. 1531 et seq.). Secretary that the areas are essential for the of their actions on imperiled species in SEC. 2. FINDINGS. conservation of the species.’’; Congress finds that— (4) by inserting after paragraph (6) (as so other nations. (1) the American public recognizes the im- redesignated) the following: The bill expands public participation portance of protecting the natural environ- ‘‘(7) CUMULATIVE IMPACTS.—The term ‘cu- by requiring public notification when a mental legacy of the United States; mulative impacts’ means the direct impacts federal activity may impact wildlife in (2) it is only through the protection of all and indirect impacts on a species or its habi- a community. The bill also requires species of plants and animals and the eco- tat that result from the incremental impact public participation in large-scale re- systems on which the species depend that of a proposed action when added to other gional habitat planning. Local citizens the people of the United States will conserve past, present, and reasonably foreseeable fu- a world for our children with the spiritual, ture actions, regardless of which person un- may participate in the first steps of re- medicinal, agricultural, and economic bene- dertakes such other actions. gional habitat planning, review rel- fits that plants and animals offer; ‘‘(8) DIRECT IMPACTS.—The term ‘direct im- evant science, and work with devel- (3) we have a moral responsibility not to pacts’ means impacts that are caused by a opers to achieve the best possible drive other species to extinction; proposed action and that occur at the same plans. If those plans are not met, the (4) we are rapidly proceeding in a manner time and place as the proposed action.’’; bill allows citizens to require the gov- that will deny to future generations a world (5) by inserting after paragraph (12) (as so ernment to take action. of abundant, varied species; redesignated) the following: ‘‘(13) IMPACTS.—The term ‘impacts’ The Endangered Species Recovery (5) although the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) has prevented the includes— Act will protect the species and land- extinction of many animal, plant, and fish ‘‘(A) loss of individual members of a spe- owners alike. I urge my colleagues to species, many of those species have not fully cies; support it. recovered and that Act must ensure their ‘‘(B) diminishment of the habitat of the Mr. President, I ask unanimous con- long-term survival and recovery; species, both qualitatively and quan- sent that the text of the bill be printed (6) Federal agencies and other persons titatively; ‘‘(C) disruption of normal behavioral pat- in the RECORD. should act to protect declining species before terns, such as breeding, feeding, and shel- There being no objection, the bill was they need the full application of the Endan- gered Species Act of 1973; tering; and ordered to be printed in the RECORD, as ‘‘(D) impairment of the ability of the spe- follows: (7) all members of the public have a right to be involved in the decisions made to pro- cies to withstand random fluctuations in en- S. 3156 tect biodiversity; vironmental conditions.’’; Be it enacted by the Senate and House of Rep- (8) to avoid extinction in the wild, habitats (6) by inserting after paragraph (14) (as so resentatives of the United States of America in must be conserved by using the best avail- redesignated) the following: Congress assembled, able science; ‘‘(15) INDIRECT IMPACTS.—The term ‘indi- (9) only by taking actions that implement rect impacts’ means impacts that are caused SECTION 1. SHORT TITLE; TABLE OF CONTENTS; by a proposed action and that occur later in REFERENCES TO ENDANGERED SPE- the recovery goals of the Endangered Species CIES ACT OF 1973. Act of 1973 can we ensure that species will time than, or farther removed in distance from, the proposed action, but that are still (a) SHORT TITLE.—This Act may be cited as eventually be removed from the lists of en- the ‘‘Endangered Species Recovery Act of dangered species and threatened species; and reasonably foreseeable. ‘‘(16) INTERIM HABITAT.—The term ‘interim 2000’’. (10) we can provide certainty for commu- habitat’ includes the habitat necessary to (b) TABLE OF CONTENTS.—The table of con- nities, local governments, and private land- support current populations of a species or tents of this Act is as follows: owners that will enable them to move for- populations that are necessary to ensure sur- ward with planning and economic develop- Sec. 1. Short title; table of contents; ref- vival, whichever is larger. ment efforts while still protecting species. erences to Endangered Species ‘‘(17) JEOPARDIZE THE CONTINUED EXISTENCE Act of 1973. TITLE I—ENDANGERED SPECIES OF.—The term ‘jeopardize the continued ex- Sec. 2. Findings. RECOVERY istence of’ means to engage in an action that TITLE I—ENDANGERED SPECIES SEC. 101. DEFINITIONS. reasonably would be expected, directly, indi- RECOVERY Section 3 (16 U.S.C. 1532) is amended— rectly, or cumulatively, to reduce appre- Sec. 101. Definitions. (1) by redesignating paragraphs (2) through ciably the likelihood of recovery in the wild Sec. 102. Designation of interim and critical (5), (6) through (9), (10), (12) through (14), and of any foreign or domestic species included habitat. (15) through (21) as paragraphs (3) through in a list published under section 4(c). Sec. 103. Schedule for listing determina- (6), (9) through (12), (14), (20) through (22), ‘‘(18) MINIMIZE.—The term ‘minimize’ tions. and (24) through (30), respectively; means— Sec. 104. Contents of listing petitions. (2) by inserting after paragraph (1) the fol- ‘‘(A) subject to subparagraph (B), to avoid Sec. 105. Recovery planning. lowing: to the extent possible, in designing and en- Sec. 106. Endangered species conservation ‘‘(2) CANDIDATE SPECIES.—The term ‘can- gaging in an activity, adverse impacts to an agreements. didate species’ means any species— endangered species or threatened species or Sec. 107. Interagency cooperation. ‘‘(A) that is not the subject of a proposed in the course of the activity; and Sec. 108. Permits and conservation plans. regulation under section 4(a)(1); ‘‘(B) in the case of an activity for which it Sec. 109. Citizen suits. ‘‘(B) that the Secretary is considering for is determined, after consideration of a rea- Sec. 110. Natural resource damage liability. listing as an endangered species or threat- sonable range of alternatives, that avoidance Sec. 111. Authorization of appropriations. ened species; and of adverse impacts to the species is impos- ‘‘(C) for which the Secretary has— sible, to design and implement the activity TITLE II—SPECIES CONSERVATION TAX ‘‘(i) sufficient information to support a in a manner that results in the lowest pos- INCENTIVES proposed regulation for that listing; or sible individual and cumulative adverse im- Sec. 201. Tax exclusion for cost-sharing pay- ‘‘(ii) information indicating that proposing pacts on the species. ments under Partners for Fish that listing may be appropriate, but for ‘‘(19) MITIGATE.—The term ‘mitigate’ and Wildlife Program. which further information is required to sup- means to redress adverse impacts to an en- Sec. 202. Enhanced deduction for the dona- port such a proposed regulation.’’; dangered species or threatened species in tion of a conservation ease- (3) by striking paragraph (6) (as so redesig- connection with an action, by replacing the ment. nated) and inserting the following: number of plants and animals in the wild, Sec. 203. Exclusion from estate tax for real ‘‘(6) CRITICAL HABITAT.—The term ‘critical and the value to the species of the habitat, property subject to endangered habitat’ for an endangered species or threat- that were lost as a result of the adverse im- species conservation agree- ened species or includes— pacts.’’; ment. ‘‘(A) the specific areas within the geo- (7) by inserting after paragraph (22) (as so Sec. 204. Expansion of estate tax exclusion graphic area occupied by the species, at the redesignated) the following: for real property subject to time the species is listed in accordance with ‘‘(23) RECOVERY.—The term ‘recovery’ qualified conservation ease- section 4, on which are found physical or bio- means a condition in which— ment. logical features that— ‘‘(A) the threats to a species, as deter- (c) REFERENCES TO ENDANGERED SPECIES ‘‘(i) are essential to the conservation of the mined under section 4(a), have been elimi- ACT OF 1973.—Except as otherwise expressly species; and nated; provided, whenever in this Act an amend- ‘‘(ii) may require special management con- ‘‘(B) the species has achieved long-term vi- ment or repeal is expressed in terms of an siderations or protections; and ability; and amendment to, or repeal of, a section or ‘‘(B) specific areas outside the geo- ‘‘(C) the protective measures under this other provision, the reference shall be con- graphical area occupied by the species, at Act are no longer needed.’’; S9752 CONGRESSIONAL RECORD — SENATE October 3, 2000 (8) by striking paragraph (25) (as so redes- for each species for which a finding under tion of section 9 or the jeopardy prohibition ignated) and inserting the following: subparagraph (B)(iii) was made before the of section 7; and ‘‘(25) SPECIES.—The term ‘species’ date of enactment of this clause, the Sec- ‘‘(v) a list of Federal agencies, States, includes— retary shall publish in the Federal tribes, and local government entities, sig- ‘‘(A) any subspecies of fish or wildlife or Register— nificantly affected by the goals or manage- plant; ‘‘(I) a proposal to list the species as an en- ment actions specified in the recovery plan, ‘‘(B) any distinct population segment of dangered species or threatened species; or that should complete a recovery implemen- any species of vertebrate fish or wildlife that ‘‘(II) a finding that the petitioned action is tation plan pursuant to paragraph (5)(A); and interbreeds when mature; and not warranted under subparagraph (B)(i). ‘‘(D) for the purposes of determining the ‘‘(C) the last remaining distinct population ‘‘(v) SPECIES WITH NEW FINDING OF WAR- criteria under subparagraph (C)(ii), select, in segment in the United States of any plant or RANTED ACTION.—Not later than 4 years after consultation with the National Academy of invertebrate species.’’; and the date on which a finding under subpara- Sciences, independent scientists who— (9) in paragraph (26) (as so redesignated), graph (B)(iii) is published for a species for ‘‘(i) through publication of peer-reviewed by striking ‘‘and the Trust Territory of the which a finding under subparagraph (B)(iii) scientific literature, have demonstrated rel- Pacific Islands’’ and inserting ‘‘the Freely was made on or after the date of enactment evant scientific expertise in that species or a Associated States, and (for the purposes of of this clause, or a date on which such a spe- similar species; and subsections (c) and (d) of section 6), any In- cies is otherwise designated by the Secretary ‘‘(ii) do not have, nor represent anyone dian tribe’’. as a candidate species, the Secretary shall with, a significant economic interest in the SEC. 102. DESIGNATION OF INTERIM AND CRIT- publish in the Federal Register— recovery plan.’’; and ICAL HABITAT. ‘‘(I) a proposal to list the species as an en- (2) by striking paragraph (5) and inserting (a) IN GENERAL.—Section 4(a) (16 U.S.C. dangered species or threatened species; or the following: 1533(a)) is amended by striking paragraph (3) ‘‘(II) a finding that the petitioned action is ‘‘(5) RECOVERY IMPLEMENTATION PLANS.— and inserting the following: not warranted under subparagraph (B)(i).’’. ‘‘(A) IN GENERAL.—Each Federal agency ‘‘(3) INTERIM AND CRITICAL HABITAT.—The SEC. 104. CONTENTS OF LISTING PETITIONS. significantly affected by the goals or man- Secretary, by regulation promulgated in ac- Section 4(b)(3) (16 U.S.C. 1533(b)(3)) is agement actions specified in a final recovery cordance with subsection (b), shall— amended by adding at the end the following: plan shall develop and implement a plan (re- ‘‘(A) subject to subparagraph (C), concur- ‘‘(E) CONTENTS OF LISTING PETITIONS.—A pe- ferred to in this paragraph as a ‘recovery im- rently with making a determination under tition referred to in subparagraph (A) shall, plementation plan’), after providing public paragraph (1) that a species is an endangered to the maximum extent practicable, notice and an opportunity for public review species or threatened species, designate in- contain— and comment on the recovery implementa- terim habitat of the species; ‘‘(i) a description of the current known and tion plan. ‘‘(B) subject to subparagraph (C), concur- historic ranges of the species; ‘‘(B) CONTENTS.—Each recovery implemen- rently with adoption of the final recovery ‘‘(ii) a description of the most recent popu- tation plan shall— plan for a species under subsection (f), des- lation estimates and trends, if available; ‘‘(i) identify the affirmative conservation ignate critical habitat of the species; ‘‘(iii) a statement of the reason that the duties and management responsibilities of ‘‘(C) in the case of a highly migratory ma- petitioned action is warranted, including a the agency that will contribute to the rine species, designate interim habitat and description of known or perceived threats to achievement of recovery goals identified in critical habitat for the species to the max- the species; the final recovery plan; imum extent biologically determinable; and ‘‘(iv) a bibliography of scientific literature ‘‘(ii) specify specific agency actions, time- ‘‘(D) from time to time thereafter as appro- on the species, if any, in support of the peti- tables, and funding required to achieve and priate, revise a designation under this para- tion; and monitor progress toward meeting recovery graph, if the Secretary determines that the ‘‘(v) any other information that the peti- goals or management responsibilities; revision would expedite or assist the recov- tioner determines is appropriate.’’. ‘‘(iii) identify any land or water under the ery of the species.’’. SEC. 105. RECOVERY PLANNING. jurisdiction or ownership of the agency that (b) BASIS FOR DETERMINATIONS.—Section Section 4(f) (16 U.S.C. 1533(f)) is amended— provide or may provide suitable habitat for 4(b) (16 U.S.C. 1533(b)) is amended by striking (1) in paragraph (1)— the species; paragraph (2) and inserting the following: (A) in the first sentence— ‘‘(iv) identify any actions needed to ac- ‘‘(2) INTERIM AND CRITICAL HABITAT.— (i) by striking ‘‘develop and implement quire additional suitable habitat under sec- ‘‘(A) CRITICAL HABITAT.—The Secretary plans’’ and inserting ‘‘, not later than 18 tion 5(a); and shall designate critical habitat, and make months after the date on which a species is ‘‘(v) describe management actions that the revisions to the designations, under sub- added to a list under subsection (c), develop agency will take on land or water under the section (a)(3)— a draft plan and, not later than 30 months jurisdiction or ownership of the agency to ‘‘(i) on the basis of the best scientific data after that date, develop and begin implemen- contribute toward recovery of the species. available; and tation of a final plan’’; ‘‘(C) STATE COOPERATION.—Consistent with ‘‘(ii) after taking into consideration the (ii) by inserting ‘‘each’’ before ‘‘endan- section 6, the Secretary shall cooperate, to economic impact, and any other relevant im- gered’’; and the maximum extent practicable, with pact, of specifying any particular area as (iii) by striking ‘‘, unless he finds that such States, tribes, and local government entities, critical habitat. a plan will not promote the conservation of that are significantly affected by a final re- ‘‘(B) INTERIM HABITAT.—In the case of in- the species’’; and covery plan, to develop State cooperative terim habitat designated at the time of list- (B) in the second sentence, by striking sub- plans to achieve the goals and implement the ing, the Secretary shall revise and finalize paragraph (B) and inserting the following: management actions identified in the recov- the habitat as critical habitat concurrently ‘‘(B) include in each plan specific provi- ery plan.’’. with the adoption of the final recovery plan. sions, including provisions required under SEC. 106. ENDANGERED SPECIES CONSERVATION ‘‘(C) EXCLUSION OF AREAS FROM CRITICAL subparagraph (C), that provide for the con- AGREEMENTS. HABITAT.—The Secretary may exclude any servation in the recovery plan area of all Section 5 (16 U.S.C. 1534) is amended by area from critical habitat on the basis that species listed as endangered species or adding at the end the following: the benefits of the exclusion outweigh the threatened species, candidate species, and ‘‘(c) ENDANGERED SPECIES CONSERVATION benefits of specifying the area as part of the species proposed for listing; AGREEMENTS.— critical habitat, if the Secretary determines, ‘‘(C) incorporate in each recovery plan for ‘‘(1) IN GENERAL.—The Secretary may enter based on the best scientific and commercial a species— into an agreement in accordance with this data available, that the failure to designate ‘‘(i) a description of such site-specific man- subsection, to be known as an ‘endangered the area as critical habitat will not impair agement actions, including identification of species conservation agreement’, with any the recovery of the species. actions of the highest priority and greatest person that is an owner or lessee of real ‘‘(D) DESIGNATION OF INTERIM HABITAT recovery potential, as may be necessary to property on which will be carried out con- BASED ON BIOLOGICAL FACTORS.—The Sec- achieve the goals of the plan for the recovery servation measures for any species described retary shall designate interim habitat of a of the species; in paragraph (3) in accordance with the en- species based only on biological factors, giv- ‘‘(ii) objective, measurable criteria, includ- dangered species conservation agreement. ing special consideration to habitat that is, ing habitat needs and population levels, ‘‘(2) REQUIRED TERMS.—The Secretary shall at the time of the designation, occupied by that, when met, would result in a determina- include in an endangered species conserva- the species.’’. tion, in accordance with this section, that tion agreement with a person under this sub- SEC. 103. SCHEDULE FOR LISTING DETERMINA- the species be removed from the list; section provisions that— TIONS. ‘‘(iii) estimates of the time required and ‘‘(A) require the person— Section 4(b)(3)(C) (16 U.S.C. 1533(b)(3)(C)) is the cost to carry out those measures needed ‘‘(i) to carry out on real property owned or amended by adding at the end the following: to achieve the goals of the plan and to leased by the person activities not otherwise ‘‘(iv) SPECIES WITH EXISTING FINDING OF achieve intermediate steps toward each goal; required by law that contribute to the con- WARRANTED ACTION.—Not later than 1 year ‘‘(iv) a general description of the types of servation of a species described in paragraph after the date of enactment of this clause, actions likely to violate the taking prohibi- (3); or October 3, 2000 CONGRESSIONAL RECORD — SENATE S9753

‘‘(ii) to refrain from carrying out on real ‘‘(6) STATE COOPERATION.—The Secretary suggest those reasonable and prudent alter- property owned or leased by the person oth- shall establish a technical assistance pro- natives that the Secretary believes would erwise lawful activities that would inhibit gram in cooperation with the States to as- not violate subsection (a)(2) and that can be the conservation of a species described in sist landowners in the development and im- taken by the Federal agency or applicant in paragraph (3); plementation of endangered species con- implementing the agency action.’’; ‘‘(B) describe the real property referred to servation agreements.’’. (2) in paragraph (4)— in clauses (i) and (ii) of subparagraph (A); SEC. 107. INTERAGENCY COOPERATION. (A) in subparagraphs (A) and (B), by strik- ‘‘(C) specify species conservation goals for (a) FEDERAL AGENCY ACTIONS AND CON- ing ‘‘violate such subsection’’ each place it the activities by the person, and measures SULTATIONS.—Section 7(a) (16 U.S.C. 1536(a)) appears and inserting ‘‘interfere with the for attaining the conservation goals of this is amended— timely achievement of recovery goals’’; subsection; (1) in the second sentence of paragraph (B) in clause (ii), by inserting ‘‘and miti- ‘‘(D) require the person to make measur- (1)— gate’’ after ‘‘minimize’’; able progress each year in achieving the (A) by striking ‘‘All other Federal agen- (C) in clause (iii), by striking ‘‘and’’ after goals; cies’’ and inserting ‘‘Each other Federal the comma at the end; ‘‘(E) specify actions to be taken by the agency’’; (D) in clause (iv), by striking the period at Secretary or the person, or both, to monitor (B) by striking ‘‘their’’ and inserting ‘‘its’’; the end and inserting ‘‘, and’’; and the effectiveness of the endangered species and (E) by adding at the end the following: conservation agreement in attaining the (C) by inserting before the period the fol- ‘‘(v) directs the Federal agency to assess goals; lowing: ‘‘, including recovery actions identi- and report to the Secretary not later than 2 ‘‘(F) require the person to notify the Sec- fied in recovery implementation plans of the years after the date of issuance of the writ- retary if— agency’’; ten statement and every 2 years thereafter ‘‘(i) any right or obligation of the person (2) in the first sentence of paragraph (2), by for as long as any incidental taking con- under the endangered species conservation inserting after ‘‘to be critical,’’ the fol- tinues, the quantity of the incidental taking agreement is assigned to any other person; lowing: ‘‘in such a way as to diminish the that has occurred as a direct impact, indi- or value of that habitat for the recovery of the rect impact, or cumulative impact. ‘‘(ii) any term of the endangered species If an assessment under clause (v) indicates conservation agreement is breached by the species,’’; and that the quantity of incidental taking au- person or any other person to whom is as- (3) by adding at the end the following: ‘‘(5) CONSULTATION WITH SECRETARY CON- thorized under the written statement has signed a right or obligation of the person been exceeded, the Federal agency shall im- under the endangered species conservation CERNING CANDIDATE SPECIES.— ‘‘(A) IN GENERAL.—Any Federal agency mediately reinitiate consultation with the agreement; Secretary pursuant to subsection (a)(2).’’; ‘‘(G) specify the date on which the endan- may consult with the Secretary regarding any action that may affect any candidate and gered species conservation agreement takes (3) by adding at the end the following: effect; and species or species proposed for listing under ‘‘(5) NOTICE OF CONSULTATION AND ACTION.— ‘‘(H) provide that the endangered species section 4(c). ‘‘(B) ADDITIONAL CONSULTATION.—If con- ‘‘(A) IN GENERAL.—On receipt of a request conservation agreement shall not be in effect to initiate consultation under paragraph (2), on and after any date on which the Secretary sultation under this paragraph is completed (3), or (5) of subsection (a), the Secretary publishes a certification under paragraph (5) before the listing of the species— shall promptly publish a notice in the Fed- that the person has not complied with the ‘‘(i) no additional consultation is required eral Register announcing that the consulta- endangered species conservation agreement. solely as a consequence of the subsequent tion has been initiated and briefly describing ‘‘(3) COVERED SPECIES.—A species referred listing of the species, if the Secretary deter- the proposed agency action. to in clauses (i) and (ii) of paragraph (2)(A) is mines that there have been no significant ‘‘(B) AVAILABILITY OF INFORMATION.—The any species that is— changes in the agency proposal and that Secretary shall make available on request ‘‘(A) listed as an endangered species or there is no significant new information that any information in the possession or control threatened species under section 4; was not considered in the original consulta- of the Secretary concerning the consultation ‘‘(B) proposed for such listing under sec- tion; and tion 4; or ‘‘(ii) the Secretary shall reinitiate con- or the opinion prepared pursuant to this sub- ‘‘(C) identified by the Secretary as a can- sultation under paragraph (2), if the Sec- section with respect to the consultation. didate for such listing under section 4. retary determines that there has been a sig- ‘‘(6) INDEPENDENT SCIENTISTS.—In preparing an opinion pursuant to this subsection, the ‘‘(4) REVIEW AND APPROVAL OF PROPOSED EN- nificant change in the agency proposal or Secretary shall invite independent scientists DANGERED SPECIES CONSERVATION AGREE- that there is significant new information MENTS BY SECRETARY.—On submission by any that was not considered in the original con- described in section 4(f)(1)(D) with expertise person of a proposed endangered species con- sultation. on species that may be affected by the pro- servation agreement under this subsection, ‘‘(C) NOTIFICATION OF CHANGE OR NEW INFOR- posed agency action to provide input into the Secretary shall— MATION.—A Federal agency shall notify the the consultation or opinion. ‘‘(A) review the proposed endangered spe- Secretary of any significant change in, or ‘‘(7) PUBLICATION OF FINDINGS AND REA- cies conservation agreement and determine significant new information regarding, any SONS.—Not later than 30 days after the date whether the endangered species conservation action regarding which the agency consulted on which the Secretary provides a written agreement complies with the requirements with the Secretary under this paragraph. statement under paragraph (3) to the Federal of this subsection; and ‘‘(6) MONITORING.—The head of each Fed- agency and the applicant for a permit, if ‘‘(B) if the Secretary determines that the eral agency shall monitor the status and any, the Secretary shall publish in the Fed- endangered species conservation agreement trends of endangered species, threatened spe- eral Register a description of the findings complies with the requirements of this cies, and candidate species that occur on and reasons of the Secretary for making any subsection— land or in water under the jurisdiction or determination under this subsection.’’. ‘‘(i) approve the endangered species con- ownership of the agency.’’. (c) BIOLOGICAL ASSESSMENT.—Section 7(c)(1) (16 U.S.C. 1536(c)(1)) is amended in the servation agreement and enter into the en- (b) OPINION OF SECRETARY.—Section 7(b) (16 dangered species conservation agreement U.S.C. 1536(b)) is amended— last sentence by striking ‘‘Such assessment with the person; and (1) by striking paragraph (3) and inserting may be undertaken’’ and inserting ‘‘The as- sessment shall be made available to the pub- ‘‘(ii) promptly notify the Secretary of the the following: lic and may be undertaken’’. Treasury that the endangered species con- ‘‘(3) STATEMENT OF OPINION OF SEC- (d) FOREIGN SPECIES.—Section 7 (16 U.S.C. RETARY.— servation agreement has been entered into 1536) is amended by adding at the end the fol- and specify the date on which the endan- ‘‘(A) IN GENERAL.—Promptly after conclu- lowing: gered species conservation agreement takes sion of consultation under paragraph (2), (3), ‘‘(q) FOREIGN SPECIES.—This section shall effect. or (5) of subsection (a), the Secretary shall apply to any agency action with respect to ‘‘(5) MONITORING IMPLEMENTATION OF EN- provide to the Federal agency and the appli- any endangered species, threatened species, DANGERED SPECIES CONSERVATION AGREE- cant, if any, a written statement setting species proposed to be added to a list under MENTS.—The Secretary shall— forth the Secretary’s opinion, and a sum- section 4(c), or candidate species carried out ‘‘(A) periodically monitor the implementa- mary of the information on which the opin- in whole or in part, in the United States, in tion of each endangered species conservation ion is based, detailing how the agency action a foreign country, or on the high seas.’’. agreement entered into under this sub- affects the species or its critical habitat, in- (e) STREAMLINING AND CONSOLIDATING section; and cluding a description of the quantity of habi- INTERAGENCY COOPERATION.—Section 7 (16 ‘‘(B) based on the information obtained tat and the number of members of the spe- U.S.C. 1536) (as amended by subsection (d)) is from the monitoring, annually certify to the cies that will be taken, and conservation ac- amended by adding at the end the following: Secretary of the Treasury whether or not tions to minimize and mitigate the impacts ‘‘(r) REGULATIONS TO ENSURE TIMELY CON- each person that has entered into an endan- of any incidental taking that may result CLUSION OF CONSULTATIONS.— gered species conservation agreement under from the action. ‘‘(1) DEFINITION OF ECOSYSTEM.—In this sub- this subsection has complied with the endan- ‘‘(B) ALTERNATIVES.—If jeopardy or adverse section, the term ‘ecosystem’ means a dy- gered species conservation agreement. modification is found, the Secretary shall namic complex of organisms and biological S9754 CONGRESSIONAL RECORD — SENATE October 3, 2000

communities, and their associated nonliving provisions that are necessary to respond to ‘‘(4) REVIEW BY SECRETARY.— environment, interacting together as an eco- all reasonably foreseeable changes in cir- ‘‘(A) IN GENERAL.—Every 3 years after the logical unit. cumstances that would jeopardize the con- date of approval of a permit application and ‘‘(2) REQUIREMENT.—Not later than 1 year tinued existence of any species covered by conservation plan under this section, the after the date of enactment of this sub- the plan, including new scientific informa- Secretary shall review and report on the section, the Secretary, in cooperation with tion and changing environmental conditions, progress toward implementation of the the States, shall promulgate regulations to including natural disasters; terms and conditions of the permit and plan ensure timely conclusion of consultations ‘‘(vi) the reasonably anticipated costs of and make recommendations on actions nec- under this section. the measures described in clause (v); essary to ensure that— ‘‘(3) CONTENT.—Regulations under this sub- ‘‘(vii) the actions that the applicant will ‘‘(i) the terms and conditions do not jeop- section shall provide that— take to monitor— ardize the continued existence of any spe- ‘‘(A) consultations and conferences under ‘‘(I) the effectiveness of the plan’s con- cies; servation measures in achieving the plan’s this section between the Secretary and a ‘‘(ii) progress is being made toward achiev- biological goals; and Federal agency shall, to the maximum ex- ing the biological goals of the plan; and ‘‘(II) impacts on the recovery of each spe- tent practicable and if approved by the Sec- ‘‘(iii) the requirements, goals, and purposes cies; retary, encompass a number of similar or re- of this Act are being met. lated agency actions to be undertaken with- ‘‘(viii) funding that will be available to the ‘‘(B) AVAILABILITY TO PUBLIC.—The Sec- in a particular geographical range or eco- applicant, throughout the term of the plan, to implement the plan and the conservation retary shall annually— system; and ‘‘(i) prepare and make publicly available a ‘‘(B) the Secretary shall, to the maximum measures specified in the plan; and ‘‘(ix) such other matters as the Secretary report on the status of all permits reviewed extent practicable, consolidate requests for pursuant to this paragraph since the date of consultations or conferences from various determines are necessary or appropriate for the last report; and Federal agencies whose proposed actions the purposes of carrying out the plan. ‘‘(ii) publish in the Federal Register a no- may affect endangered species, threatened ‘‘(C) FINDINGS.—The Secretary shall not tice of the availability of the most recent re- species, or candidate species that are depend- issue a permit under paragraph (1)(B) for the port. ent on the same ecosystem.’’. taking of any species unless the Secretary finds, after opportunity for public comment ‘‘(5) PERMIT REVOCATION.—The Secretary SEC. 108. PERMITS AND CONSERVATION PLANS. with respect to a permit application and the shall revoke a permit issued under this sec- Section 10 (16 U.S.C. 1539) is amended by related conservation plan, that— tion and issue an order suspending activities striking subsection (a) and inserting the fol- ‘‘(i) the conservation plan submitted for allowed under the permit that may be rea- lowing: the permit meets all of the requirements of sonably expected to cause a taking of any ‘‘(a) PERMITS.— this paragraph; species covered by the permit, if— ‘‘(1) IN GENERAL.—The Secretary may per- ‘‘(ii) the taking will be incidental; ‘‘(A) the permittee is not in compliance mit, under the terms and conditions provided ‘‘(iii) the applicant will minimize and miti- with the terms and conditions of the permit, for in this section— gate the individual impacts and cumulative the requirements of this Act, and the regula- ‘‘(A) any act otherwise prohibited by sec- impacts of the taking; tions issued under this Act, including any tion 9 for scientific purposes or to enhance ‘‘(iv) the activities authorized by the per- failure by a permittee to substantially com- the propagation or survival of the affected mit and conservation plan are consistent ply with the conservation plan required for a species, or the conservation of the species in with the recovery of the species and will re- permit issued under paragraph (1)(B); or the wild, such as acts necessary for the con- sult in no net loss of the value to the species ‘‘(B) the level of the taking authorized by servation, establishment, and maintenance of the habitat occupied by the species; the permit has been exceeded. of experimental populations pursuant to sub- ‘‘(v) the applicant has, in accordance with ‘‘(6) ACTIONS BY SECRETARY ON FAILURE BY section (j); or paragraph (9), filed a performance bond or PERMITTEE.— ‘‘(B) any taking otherwise prohibited by other evidence of financial security to en- ‘‘(A) IN GENERAL.—If a permittee defaults section 9(a)(1) if the taking is incidental to, sure adequate funding for each element of on any obligation of the permittee under a and not the purpose of, the carrying out of the conservation plan; and permit issued under paragraph (1)(B) or a an otherwise lawful activity. ‘‘(vi) the permit contains— conservation plan required for the permit, ‘‘(2) DURATION.—The Secretary shall limit ‘‘(I) such terms and conditions as are nec- the Secretary shall undertake actions to the duration of a permit under paragraph (1) essary or appropriate to carry out this para- conserve each species covered by the plan as necessary to ensure that changes in cir- graph and ensure implementation of the con- and permit. cumstances that could occur in the period servation plan by the applicant; and ‘‘(B) FUNDING.—To carry out actions re- covered by the permit and that would jeop- ‘‘(II) such reporting and monitoring re- quired under subparagraph (A) with respect ardize the continued existence of the species quirements as are necessary for determining to a default by a permittee, the Secretary are reasonably foreseeable. whether the terms and conditions are being may use— ‘‘(3) CONSERVATION PLAN.— complied with. ‘‘(i) the proceeds of the performance bond ‘‘(A) IN GENERAL.—No permit may be issued ‘‘(D) REPORTS ON BIOLOGICAL STATUS AND or other financial security under paragraph by the Secretary authorizing any taking re- GOALS.— (9) provided by the permittee; and ferred to in paragraph (1)(B) unless the appli- ‘‘(i) IN GENERAL.—Each permit shall re- cant for the permit submits to the Secretary quire the permittee to provide to the Sec- ‘‘(ii) amounts in the Habitat Conservation a conservation plan in accordance with this retary, not later than 1 year after the date of Plan Fund established by paragraph (10). paragraph that is based on the best scientific issuance of the permit and at least once each ‘‘(7) LOW EFFECT, SMALL SCALE PLANS.— and commercial information available. year thereafter during the term of the per- ‘‘(A) IN GENERAL.—The Secretary shall de- ‘‘(B) CONTENTS.—A conservation plan under mit, a complete report on— velop and implement a streamlined applica- this paragraph shall provide a description ‘‘(I) the biological status of the species in tion and approval procedure for a permit and analysis of— the affected area; issued under paragraph (1)(B) and related ‘‘(i) the specific activities sought to be au- ‘‘(II) the impacts of the habitat conserva- conservation plan that the Secretary deter- thorized by the permit; tion plan and the permitted action on the mines to be a low effect, small scale plan. ‘‘(ii) a reasonable range of alternative ac- species; and ‘‘(B) PREREQUISITES.—A permit and related tions to the taking of each species covered ‘‘(III) whether the biological goals of the conservation plan may be treated as a low ef- by the plan; plan are being met. fect, small scale permit and plan if— ‘‘(iii) the individual and cumulative im- ‘‘(ii) AVAILABILITY TO PUBLIC.—The Sec- ‘‘(i) the permitted action is expected to be pacts that may reasonably be anticipated to retary shall make reports required under of less than 5 years in duration; result from the permitted activities covered this subparagraph available to the public. ‘‘(ii) the conservation plan is applicable to by the plan, including the impacts of modi- ‘‘(E) ADDITIONAL CONSERVATION MEAS- an area of less than 5 acres; fication or destruction of habitat of species URES.— ‘‘(iii) the affected acreage is not adjacent authorized under the permit; ‘‘(i) IN GENERAL.—If necessary to ensure to other land that has been the subject of a ‘‘(iv) objective, measurable biological goals that the permitted action does not jeop- permit issued under this section within the to be achieved for each species covered by ardize the continued existence of any species preceding 5 years to the same person, or as the plan; affected by the permitted action, the Sec- part of the same project; ‘‘(v) the conservation measures that the retary shall require a permittee to imple- ‘‘(iv) the permitted action is not part of a applicant will implement to minimize and ment conservation measures in addition to single larger project that will have addi- mitigate the impacts described in clause the conservation measures specified in the tional impacts on the endangered species or (iii), including— plan. threatened species; ‘‘(I) the specific conservation measures for ‘‘(ii) COST SHARING.—The Secretary shall ‘‘(v) the Secretary determines that the achieving the biological goals of the plan; pay the costs of any additional conservation plan will have a negligible cumulative im- and measures required under this subparagraph pact and individual impact on the recovery ‘‘(II) any additional requirements or re- that are in excess of the reasonably antici- of the endangered species or threatened spe- strictions or other adaptive management pated costs specified in the plan. cies; and October 3, 2000 CONGRESSIONAL RECORD — SENATE S9755 ‘‘(vi) the permitted action is not related to ‘‘(i) phased bonds or deposits, by which the ‘‘(iii) permitting with respect to which fees other actions that will have additional im- permittee may divide the area or actions are deposited in the Fund under subpara- pacts on the endangered species or threat- covered by the conservation plan into dis- graph (B)(iii); and ened species. crete sections and execute a separate bond or ‘‘(iv) restoration or replacement of natural ‘‘(C) RELATED ACTIONS.—For the purposes deposit for each section before undertaking resources with respect to which natural re- of subparagraph (B)(vi), actions shall be con- any action on that section; or source damages are deposited in the Fund sidered related if they— ‘‘(ii) adjusted bonds or deposits, through under subparagraph (B)(iv). ‘‘(i) automatically trigger other actions which the amount of the bond or deposits re- ‘‘(11) MULTIPLE LANDOWNER, MULTISPECIES that may affect endangered species or quired and the terms of acceptance of a bond PLANNING.— threatened species; or deposits shall be adjusted by the Sec- ‘‘(A) IN GENERAL.—The Secretary shall en- ‘‘(ii) cannot or will not proceed unless retary from time to time as the extent of ac- courage the development of multiple land- other actions are taken previously or simul- tions that affect endangered species or owner, multispecies conservation plans, that— taneously; or threatened species increases or decreases. ‘‘(i) make a significant contribution to the ‘‘(iii) are interdependent on parts of a larg- ‘‘(D) EXECUTION.—The bond or deposits recovery of an endangered species or threat- er action and depend on the larger action for shall be executed by the permittee and a cor- their justification. ened species; porate surety or depository, respectively. ‘‘(ii) rely on the best available scientific ‘‘(D) MONITORING.— ‘‘(E) RELEASE OF BOND OR DEPOSIT.— information; ‘‘(i) IN GENERAL.—The Secretary shall mon- ‘‘(i) IN GENERAL.—The permittee may file a ‘‘(iii) rely, to the maximum extent prac- itor the implementation and results of low request with the Secretary for the release of ticable, on ecosystem planning; and effect, small scale permits and conservation all or any part of a performance bond or de- ‘‘(iv) maintain the well-being of other spe- plans to ensure that the permits and plans do posit of any other financial security required cies located within the planning area. not jeopardize the continued existence of any under this paragraph. ‘‘(B) STREAMLINING OF PERMITTING PROC- endangered species or threatened species. ‘‘(ii) NOTICE AND COMMENT.—Not later than ESSES ACROSS JURISDICTIONS.— ‘‘(ii) ADDITIONAL REQUIREMENTS OR RESTRIC- 30 days after any request for release has been ‘‘(i) IN GENERAL.—To encourage the devel- TIONS.—If the Secretary determines that ad- filed with the Secretary, the Secretary opment of the plans, the Secretary shall co- ditional requirements or restrictions are re- shall— operate, to the maximum extent practicable, quired to ensure that actions authorized by a ‘‘(I) file notice of the request in the Fed- with States and local governments to low effect, small scale conservation plan do eral Register; and streamline permitting processes across juris- not jeopardize the continued existence of any ‘‘(II) provide opportunity for public com- dictions. species determined to be an endangered spe- ment before making a decision under clause ‘‘(ii) LARGE-SCALE CONSERVATION PLANS.— cies or threatened species after the plan was (iii). The cooperation shall include issuing per- approved, the Secretary shall require appro- ‘‘(iii) REVIEW.—Not later than 30 days after mits under paragraph (1)(B) to a State, local priate modifications to the plan to imple- receipt of the request, the Secretary shall government, or group of local governments ment those requirements or restrictions. conduct a review of the implementation of for large-scale conservation plans that in- ‘‘(iii) COST SHARING.—The Secretary shall the conservation plan to determine volve more than 1 landowner. pay all costs of implementing additional re- whether— ‘‘(C) INCIDENTAL TAKING CERTIFICATES.—A quirements or restrictions required under ‘‘(I) the requirements of the plan have been permit under subparagraph (B)(ii) may au- clause (ii). fully implemented; thorize the State, local government, or ‘‘(E) FINANCIAL SECURITY.—The permittee ‘‘(II) the plan has achieved its biological group of local governments to issue inci- for which a low effect, small scale permit goals; and dental taking certificates to landowners that and conservation plan is approved under this ‘‘(III) no further action is needed to ensure authorize takings under the authority of the paragraph shall not be required to provide a that the permitted action is not jeopardizing permit within the jurisdiction of the State, performance bond or other financial security the existence of the species covered by the local government, or group of local govern- under paragraph (9). plan. ments, if— ‘‘(8) MONITORING.—The Secretary shall ‘‘(iv) NOTICE OF DECISION.—Not later than ‘‘(i) the State, local government, or group monitor the implementation and results of 90 days after receipt of the request, the Sec- of local governments meets the performance all conservation plans approved under this retary shall notify the permittee in writing bond or other financial security require- subsection to ensure that the plans do not of the decision of the Secretary to release or ments under paragraph (9) with respect to all jeopardize the continued existence of any en- not to release all or part of the bond or de- such certificates, or each certificate is effec- dangered species or threatened species. posit. tive only after the landowner to whom the ‘‘(9) PERFORMANCE BONDS.— certificate is issued has met those require- ‘‘(v) NOTICE OF REASONS FOR NO RELEASE.— ‘‘(A) IN GENERAL.—After the approval of an ments with respect to the certificate; If the Secretary does not release any portion incidental taking permit under paragraph ‘‘(ii) the State, local government, or group of the bond or deposit, the Secretary shall (1)(B) and associated conservation plan in ac- of local governments ensures that all inci- notify the permittee in writing of the rea- cordance with this subsection, but before the dental taking certificates issued under the sons that the portion was not released and permit is issued, the applicant shall— permit are consistent with the permit and ‘‘(i) file with the Secretary a performance recommended corrective actions necessary approved habitat conservation plan; bond payable to the United States, and con- to secure that release. ‘‘(iii) the State, local government, or group ditional on faithful performance of all the ‘‘(10) HABITAT CONSERVATION PLAN FUND.— of local governments provides adequate pub- requirements of the permit; or ‘‘(A) ESTABLISHMENT.—There is established lic notice and opportunity to comment on ‘‘(ii) deposit another form of financial se- in the Treasury a separate account to be decisions to issue incidental taking certifi- curity, payable to the United States, in a known as the ‘Habitat Conservation Plan cates; and form and manner approved by the Secretary, Fund’ (referred to in this paragraph as the ‘‘(iv) the Secretary and the State, local and conditional on such faithful perform- ‘Fund’). government, or group of local governments ance, having a cash or market value, as ap- ‘‘(B) CONTENTS.—The Fund shall consist have adequate authority to enforce the plicable, equal to or greater than the amount of— terms and conditions of the incidental tak- of a performance bond otherwise required ‘‘(i) donations to the Fund; ing certificates. under clause (i). ‘‘(ii) appropriations to the Fund; ‘‘(D) ENCOURAGEMENT OF PLANS.—The Sec- ‘‘(B) AMOUNT.—The amount of the bond or ‘‘(iii) amounts received by the United retary shall— deposit of other financial security required States as fees charged for permits under this ‘‘(i) ensure the participation of a broad for each permit shall be— section; range of public and private interests in the ‘‘(i) determined by the Secretary; ‘‘(iv) amounts received by the United development of the plan; ‘‘(ii) based on the mitigation requirements States as natural resource damages under ‘‘(ii) provide technical assistance to the needed to meet the biological goals of the section 11(i); and maximum extent practicable; and conservation plan; and ‘‘(v) the proceeds of performance bonds and ‘‘(iii) give the plans priority consideration ‘‘(iii) sufficient to ensure the completion of other deposits of financial security under for funding under section 6. all conservation measures to be implemented paragraph (9). ‘‘(E) POOLED BONDS OR DEPOSITS.—The Sec- by the permittee under the conservation ‘‘(C) USE.—Amounts in the Fund shall be retary may approve the use of pooled bonds plan that are specified in the plan. available to the Secretary until expended, or deposits in order to meet the require- ‘‘(C) PHASED OR ADJUSTED BONDS OR DEPOS- without further appropriation, to pay the ments of paragraph (9) for plans approved ITS.—In the case of a bond or deposit of other cost of— under this paragraph that— financial security required for a large-scale ‘‘(i) additional conservation measures re- ‘‘(i) do not meet the requirements of sub- conservation plan (as defined in paragraph quired under paragraph (3)(E) and additional paragraph (C); and (12)(A)), or a conservation plan for which the requirements and restrictions required under ‘‘(ii) involve more than 1 landowner. reasonably foreseeable costs may be prohibi- paragraph (7)(C)(iii) for recovery of a species; ‘‘(12) CITIZEN PARTICIPATION; INDEPENDENT tive, the Secretary may authorize the use ‘‘(ii) actions by the Secretary to conserve SCIENTISTS.— of— species under paragraph (6); ‘‘(A) DEFINITIONS.—In this paragraph: S9756 CONGRESSIONAL RECORD — SENATE October 3, 2000

‘‘(i) AGENCY INVOLVEMENT.—The term ‘‘(iii) serving as a focal point for questions, ‘‘(1) to the Secretary of the Interior for ‘agency involvement’ means any role played requests, complaints, and suggestions from carrying out this Act— by the Secretary in the development of a property owners and local governments con- ‘‘(A) $135,000,000 for fiscal year 2001; conservation plan under paragraph (3). cerning the policies and activities of the ‘‘(B) $140,000,000 for fiscal year 2002; ‘‘(ii) INDEPENDENT SCIENTIST.—The term United States Fish and Wildlife Service or ‘‘(C) $145,000,000 for fiscal year 2003; ‘independent scientist’ means a scientist other Federal agencies in the implementa- ‘‘(D) $150,000,000 for fiscal year 2004; and that meets the criteria specified in section tion of this Act; and ‘‘(E) $155,000,000 for fiscal year 2005; and 4(f)(1)(D). ‘‘(iv) training Federal personnel on public ‘‘(2) to the Secretary of Commerce for car- ‘‘(iii) LARGE-SCALE CONSERVATION PLAN.— outreach efforts under this Act.’’. rying out this Act— The term ‘large-scale conservation plan’ SEC. 109. CITIZEN SUITS. ‘‘(A) $35,000,000 for fiscal year 2001; means a conservation plan that covers a sig- Section 11(g) (16 U.S.C. 1540(g)) is ‘‘(B) $40,000,000 for fiscal year 2002; nificant portion of the range of an endan- amended— ‘‘(C) $45,000,000 for fiscal year 2003; gered species, threatened species, candidate (1) in paragraph (1)(A), by striking ‘‘in vio- ‘‘(D) $50,000,000 for fiscal year 2004; and species, or species proposed for listing under lation’’ and all that follows through the end ‘‘(E) $55,000,000 for fiscal year 2005. section 4. of the subparagraph and inserting ‘‘in viola- ‘‘(b) CONVENTION IMPLEMENTATION.—In ad- ‘‘(B) NOTICE AND COMMENT.—The Secretary tion of this Act, any regulation or permit dition to other amounts authorized by this may issue a permit under this section only issued under this Act, any statement pro- section, there are authorized to be appro- after— vided by the Secretary under section 7(b)(3), priated to the Secretary of the Interior for ‘‘(i) notice of the receipt of an application or any agreement concluded under this carrying out functions under section 8 relat- for the permit has been published in the Fed- Act;’’; and ing to implementation of the Convention on eral Register; (2) in paragraph (2)— International Trade in Endangered Species (A) in subparagraph (A)(i), by inserting be- ‘‘(ii) at least a 60-day public comment pe- of Wild Fauna and Flora— fore the semicolon at the end the following riod has been provided; and ‘‘(1) $3,000,000 for fiscal year 2001; and ‘‘, except that notwithstanding this clause ‘‘(iii) a notice of permit approval has been ‘‘(2) $4,000,000 for each of fiscal years 2002 such an action may be brought immediately published in the Federal Register with agen- and 2003. after the notice in the case of an action ‘‘(c) HABITAT CONSERVATION PLAN FUND.— cy responses to public comments. against any person regarding an emergency In addition to other amounts authorized by ‘‘(C) AGENCY INVOLVEMENT.— posing a significant risk to any species of this section, there is authorized to be appro- ‘‘(i) IN GENERAL.—On receipt of request for fish, wildlife, or plant included in a list priated to the Habitat Conservation Plan involvement by an agency in the develop- under section 4(c) or proposed for inclusion Fund established by section 10(a)(10) ment of a large-scale conservation plan pur- in such a list’’; and $20,000,000 for each of fiscal years 2001, 2002, suant to paragraphs (3)(A) and (11), the Sec- (B) in subparagraph (B)(i), by inserting be- and 2003. retary shall promptly publish a notice in the fore the semicolon at the end the following: ‘‘(d) COOPERATIVE AGREEMENT FUNDS.—In Federal Register announcing the agency’s in- ‘‘, except that notwithstanding this clause addition to other amounts authorized by this volvement and briefly describing the activi- such an action may be brought immediately section, there are authorized to be ties that would be permitted under the plan. after such notice in the case of an action appropriated— ‘‘(ii) AVAILABILITY OF INFORMATION.—The under this section against any person regard- ‘‘(1) to the Secretary of the Interior for en- Secretary shall make available, on request, ing an emergency posing a significant risk to tering into cooperative agreements under any information in the Secretary’s posses- any species of fish, wildlife, or plant included section 6 with States and Indian tribes, sion or control concerning the planning ef- in a list under section 4(c)’’. $20,000,000 for each of fiscal years 2001, 2002, forts. SEC. 110. NATURAL RESOURCE DAMAGE LIABIL- and 2003; and ‘‘(D) PUBLIC PARTICIPATION.— ITY. ‘‘(2) to the Secretary of Commerce for en- ‘‘(i) IN GENERAL.—The Secretary shall in- Section 11 (16 U.S.C. 1540) is amended by tering into cooperative agreements under vite members of the public to participate in adding at the end the following: section 6 with States and Indian tribes, the development of large-scale conservation ‘‘(i) NATURAL RESOURCE DAMAGE LIABIL- $5,000,000 for each of fiscal years 2001, 2002, plans and multiple landowner, multispecies ITY.— and 2003.’’. plans. ‘‘(1) IN GENERAL.—Any person that, in vio- TITLE II—SPECIES CONSERVATION TAX ‘‘(ii) BALANCED DEVELOPMENT PROCESS.— lation of this Act, negligently damages any INCENTIVES The Secretary shall promulgate regulations member or habitat of a species included in a establishing a development process under list under section 4(c) shall be liable to— SEC. 201. TAX EXCLUSION FOR COST-SHARING this paragraph that ensures an equitable bal- PAYMENTS UNDER PARTNERS FOR ‘‘(A) the United States for the costs in- FISH AND WILDLIFE PROGRAM. ance of participation between— curred by the United States in restoring or (a) IN GENERAL.—Section 126(a) of the In- ‘‘(I) citizens with a primary interest in car- replacing the member or habitat, including ternal Revenue Code of 1986 (relating to cer- rying out economic development activities reasonable costs of assessing the damage; tain cost-sharing payments) is amended by that may affect species conservation; and and redesignating paragraph (10) as paragraph ‘‘(II) citizens whose primary interest is in ‘‘(B) a State for the costs incurred by the (11) and by inserting after paragraph (9) the State in restoring or replacing the member species conservation. following: or habitat under a management agreement ‘‘(iii) MEETINGS.—A meeting of partici- ‘‘(10) The Partners for Fish and Wildlife with the Secretary under section 6(a) or a co- pants under this subparagraph shall not be Program authorized by the Fish and Wildlife operative agreement with the Secretary subject to the Federal Advisory Committee Act of 1956 (16 U.S.C. 742a et seq.).’’. Act (5 U.S.C. App.), but shall be open to the under section 6(c), including reasonable costs (b) EFFECTIVE DATE.—The amendments public. of assessing the damage. made by this section shall apply to payments ‘‘(E) INDEPENDENT SCIENTISTS.—On receipt ‘‘(2) DEPOSIT.—Amounts received by the received after the date of the enactment of of a request for involvement by an agency in United States under this subsection— this Act. ‘‘(A) shall be deposited in the Habitat Con- the development of a large-scale conserva- SEC. 202. ENHANCED DEDUCTION FOR THE DO- tion plan, the Secretary shall invite inde- servation Plan Fund established by section NATION OF A CONSERVATION EASE- pendent scientists with expertise on species 10(a)(10); and MENT. that may be affected by the plan to provide ‘‘(B) may be obligated only for the acquisi- (a) IN GENERAL.—Subparagraph (A) of sec- input. tion or rehabilitation of damaged habitat or tion 170(h)(4) of the Internal Revenue Code of ‘‘(13) COMMUNITY ASSISTANCE PROGRAM.— populations. 1986 (defining conservation purpose) is ‘‘(A) ESTABLISHMENT.—The Secretary shall ‘‘(3) CIVIL ACTIONS BY SECRETARY.—The amended by striking ‘‘or’’ at the end of establish a community assistance program Secretary may commence a civil action on clause (iii), by striking the period at the end to provide timely and accurate information behalf of the United States under this sub- of clause (iv) and inserting ‘‘, or’’, and by to local governments and property owners in section. adding at the end the following: accordance with subparagraph (B). ‘‘(4) NOTICE.—No action may be com- ‘‘(v) the conservation of a species des- ‘‘(B) FIELD OFFICE EMPLOYEES.—Under the menced under this subsection by the Sec- ignated by the Secretary of the Interior or community assistance program, the Sec- retary or a State before the end of the 60-day the Secretary of Commerce under the Endan- retary shall assign to each field office of the period beginning on the date on which the gered Species Act of 1973 (16 U.S.C. 1531 et United States Fish and Wildlife Service em- Secretary or the State, respectively, pro- seq) as endangered or threatened, proposed ployees whose duties include— vides written notice of the action to the per- by such Secretary for designation as endan- ‘‘(i) providing accurate, timely informa- son against whom the action is com- gered or threatened, or identified by such tion on local impacts of determinations that menced.’’. Secretary as a candidate for such designa- species are endangered species or threatened SEC. 111. AUTHORIZATION OF APPROPRIATIONS. tion, provided the property is not required, species, recovery planning efforts, and other Section 15 (16 U.S.C. 1542) is amended to as of the date of contribution, to be used for actions under this Act; read as follows: such purpose other than by reason of the ‘‘(ii) providing assistance on obtaining per- ‘‘SEC. 15. AUTHORIZATION OF APPROPRIATIONS. terms of contribution.’’. mits under this section and otherwise com- ‘‘(a) IN GENERAL.—There are authorized to (b) ENHANCED DEDUCTIONS.—Subsection (e) plying with this Act; be appropriated— of section 170 of the Internal Revenue Code October 3, 2000 CONGRESSIONAL RECORD — SENATE S9757

of 1986 (defining qualified conservation con- ‘‘(B) ACQUISITION INDEBTEDNESS.—For pur- ‘‘(iii) the termination of the endangered tribution) is amended by adding at the end poses of this paragraph, the term ‘acquisi- species conservation agreement. the following: tion indebtedness’ means, with respect to ‘‘(B) AMOUNT OF ADDITIONAL TAX.— ‘‘(7) SPECIAL RULES FOR CONTRIBUTIONS RE- any real property, the unpaid amount of— ‘‘(i) IN GENERAL.—The amount of the addi- LATED TO CONSERVATION OF SPECIES.—In the ‘‘(i) the indebtedness incurred by the donor tional tax imposed by subparagraph (A) with case of a qualified conservation contribution in acquiring such property, respect to any interest shall be an amount by an individual for the conservation of en- ‘‘(ii) the indebtedness incurred before the equal to the applicable percentage of the dangered or threatened species, proposed acquisition of such property if such indebted- lesser of— species, or candidate species under sub- ness would not have been incurred but for ‘‘(I) the adjusted tax difference attrib- section (h)(4)(v): such acquisition, utable to such interest (within the meaning ‘‘(A) 50 PERCENT LIMITATION TO APPLY.— ‘‘(iii) the indebtedness incurred after the of section 2032A(c)(2)(B)), or Such a contribution shall be treated for the acquisition of such property if such indebted- ‘‘(II) the excess of the amount realized purposes of this section as described in sub- ness would not have been incurred but for with respect to the interest (or, in any case section (b)(l)(A). such acquisition and the incurrence of such other than a sale or exchange at arm’s ‘‘(B) 20-YEAR CARRY FORWARD.—Subsection indebtedness was reasonably foreseeable at length, the fair market value of the interest) (d)(1) shall be applied by substituting ‘20 the time of such acquisition, and over the value of the interest determined years’ for ‘5 years’ each place it appears and ‘‘(iv) the extension, renewal, or refinancing under subsection (a). with appropriate adjustments in the applica- of an acquisition indebtedness. ‘‘(ii) APPLICABLE PERCENTAGE.—For pur- tion of subparagraph (A)(ii) thereof. ‘‘(c) ENDANGERED SPECIES CONSERVATION poses of clause (i), the applicable percentage ‘‘(C) UNUSED DEDUCTION CARRYOVER AL- AGREEMENT.—For purposes of this section— is determined in accordance with the fol- LOWED ON TAXPAYER’S LAST RETURN.—If the ‘‘(1) IN GENERAL.—The term ‘endangered lowing table: The applicable taxpayer dies before the close of the last tax- species conservation agreement’ means a ‘‘If, with respect to percentage is— able year for which a deduction could have written agreement entered into with the the date of the been allowed under subsection (d)(1), any Secretary of the Interior or the Secretary of agreement, the date portion of the deduction for such contribu- Commerce— of the event de- tion which has not been allowed shall be al- ‘‘(A) which commits each person who scribed in subpara- lowed as a deduction under subsection (a) signed such agreement to carry out on the graph (A) occurs— (without regard to subsection (b)) for the real property activities or practices not oth- Before 10 years ...... 100 taxable year in which such death occurs or erwise required by law or to refrain from car- After 9 years and before 20 years .... 75 such portion may be used as a deduction rying out on such property activities or After 19 years and before 30 years ... 50 against the gross estate of the taxpayer.’’. practices that could otherwise be lawfully After 29 years and before 40 years ... 25 (c) EFFECTIVE DATE.—The amendments carried out and includes— After 39 ...... 0. made by this section shall apply to contribu- ‘‘(i) objective and measurable species of ‘‘(C) EXCEPTION IF CERTAIN HEIRS ASSUME tions made after the date of the enactment concern conservation goals, OBLIGATIONS UPON THE DEATH OF A PERSON of this Act. ‘‘(ii) site-specific and other management EXECUTING THE AGREEMENT.—Subparagraph SEC. 203. EXCLUSION FROM ESTATE TAX FOR measures necessary to achieve those goals, (A)(i) shall not apply if— REAL PROPERTY SUBJECT TO EN- and ‘‘(i) upon the death of a person described in DANGERED SPECIES CONSERVATION ‘‘(iii) objective and measurable criteria to subsection (b)(1)(B) during the term of such AGREEMENT. monitor progress toward those goals, agreement, the property subject to such (a) IN GENERAL.—Part IV of subchapter A ‘‘(B) which is certified by such Secretary agreement passes to a member of the per- of chapter 11 of the Internal Revenue Code of as providing a major contribution to the con- son’s family, and 1986 (relating to taxable estate) is amended servation of a species of concern, and ‘‘(ii) the member agrees— by adding at the end the following new sec- ‘‘(C) which is for a term that such Sec- ‘‘(I) to assume the obligations imposed on tion: retary determines is sufficient to achieve the such person under the endangered species ‘‘SEC. 2058. CERTAIN REAL PROPERTY SUBJECT purposes of the agreement, but not less than conservation agreement, TO ENDANGERED SPECIES CON- ‘‘(II) to assume personal liability for any SERVATION AGREEMENT. 10 years beginning on the date of the dece- tax imposed under subparagraph (A) with re- ‘‘(a) GENERAL RULE.—For purposes of the dent’s death. tax imposed by section 2001, the value of the ‘‘(2) SPECIES OF CONCERN.—The term ‘spe- spect to any future event described in sub- taxable estate shall be determined by de- cies of concern’ means any species des- paragraph (A), and ducting from the value of the gross estate an ignated by the Secretary of the Interior or ‘‘(III) to notify the Secretary of the Treas- amount equal to lesser of— the Secretary of Commerce under the Endan- ury and the Secretary of the Interior or the ‘‘(1) the adjusted value of real property in- gered Species Act of 1973 (16 U.S.C. 1531 et Secretary of Commerce that the member has cluded in the gross estate which is subject to seq) as endangered or threatened, proposed assumed such obligations and liability. an endangered species conservation agree- by such Secretary for designation as endan- If a member of the person’s family enters ment, or gered or threatened, or identified by such into an agreement described in subclauses ‘‘(2) $10,000,000. Secretary as a candidate for such designa- (I), (II), and (III), such member shall be ‘‘(b) PROPERTY SUBJECT TO AN ENDANGERED tion. treated as signatory to the endangered spe- SPECIES CONSERVATION AGREEMENT.—For ‘‘(3) ANNUAL CERTIFICATION TO THE SEC- cies conservation agreement the person en- purposes of this section— RETARY BY THE SECRETARY OF THE INTERIOR tered into. ‘‘(1) IN GENERAL.—Real property shall be OR THE SECRETARY OF COMMERCE OF THE STA- ‘‘(2) DUE DATE OF ADDITIONAL TAX.—The ad- treated as subject to an endangered species TUS OF ENDANGERED SPECIES CONSERVATION ditional tax imposed by paragraph (1) shall conservation agreement if— AGREEMENTS.—If the executor elects the ap- become due and payable on the day that is 6 ‘‘(A) such property was owned by the dece- plication of this section, the executor shall months after the date of the disposition re- dent or a member of the decedent’s family at promptly give written notice of such elec- ferred to in paragraph (1)(A)(i) or, in the case all times during the 3-year period ending on tion to the Secretary of the Interior or the of an event described in clause (ii) or (iii) of the date of the decedent’s death, Secretary of Commerce. The Secretary of paragraph (1)(A), on April 15 of the calendar ‘‘(B) each person who has an interest in the Interior or the Secretary of Commerce year following any year in which the Sec- such property (whether or not in possession) shall thereafter annually certify to the Sec- retary of the Interior or the Secretary of has entered into— retary that the endangered species conserva- Commerce fails to provide the certification ‘‘(i) an endangered species conservation tion agreement applicable to any property required under subsection (c)(3). agreement with respect to such property, for which such election has been made re- ‘‘(e) STATUTE OF LIMITATIONS.—If a tax- and mains in effect and is being satisfactorily payer incurs a tax liability pursuant to sub- ‘‘(ii) a written agreement with the Sec- complied with. section (d)(1)(A), then— retary consenting to the application of sub- ‘‘(d) RECAPTURE OF TAX BENEFIT IN CERTAIN ‘‘(1) the statutory period for the assess- section (d), and CASES.— ment of any additional tax imposed by sub- ‘‘(C) the executor of the decedent’s estate— ‘‘(1) DISPOSITION OF INTEREST OR MATERIAL section (d)(1)(A) shall not expire before the ‘‘(i) elects the application of this section, BREACH.— expiration of 3 years from the date the Sec- and ‘‘(A) IN GENERAL.—An additional tax in the retary is notified (in such manner as the Sec- ‘‘(ii) files with the Secretary such endan- amount determined under subparagraph (B) retary may by regulation prescribe) of the gered species conservation agreement. shall be imposed on any person on the earlier incurring of such tax liability, and ‘‘(2) ADJUSTED VALUE.— of— ‘‘(2) such additional tax may be assessed ‘‘(A) IN GENERAL.—The adjusted value of ‘‘(i) the disposition by such person of any before the expiration of such 3-year period any real property shall be its value for pur- interest in property subject to an endangered notwithstanding the provisions of any other poses of this chapter, reduced by— species conservation agreement (other than law or rule of law that would otherwise pre- ‘‘(i) any amount deductible under section a disposition described in subparagraph (C)), vent such assessment. 2055(f) with respect to the property, and ‘‘(ii) a material breach by such person of ‘‘(f) ELECTION AND FILING OF AGREEMENT.— ‘‘(ii) any acquisition indebtedness with re- the endangered species conservation agree- The election under this section shall be made spect to the property. ment, or S9758 CONGRESSIONAL RECORD — SENATE October 3, 2000 on the return of the tax imposed by section 1768, a bill to amend the Congressional Internal Revenue Code of 1986 to allow 2001. Such election, and the filing under sub- Budget Act of 1974 to protect Social Se- individuals a refundable credit against section (b) of an endangered species con- curity surpluses through strengthened income tax for the purchase of private servation agreement, shall be made in such budgetary enforcement mechanisms. health insurance, and to establish manner as the Secretary shall by regulation provide. S. 1902 State health insurance safety-net pro- ‘‘(g) APPLICATION OF THIS SECTION TO IN- At the request of Mrs. FEINSTEIN, the grams. TERESTS IN PARTNERSHIPS, CORPORATIONS, name of the Senator from Illinois (Mr. S. 2505 AND TRUSTS.—This section shall apply to an DURBIN) was added as a cosponsor of S. At the request of Mr. JEFFORDS, the interest in a partnership, corporation, or 1902, a bill to require disclosure under name of the Senator from North Da- trust if at least 30 percent of the entity is the Freedom of Information Act re- kota (Mr. DORGAN) was added as a co- owned (directly or indirectly) by the dece- dent, as determined under the rules de- garding certain persons and records of sponsor of S. 2505, a bill to amend title scribed in section 2057(e)(3). the Japanese Imperial Army in a man- XVIII of the Social Security Act to ‘‘(h) MEMBER OF FAMILY.—For purposes of ner that does not impair any investiga- provide increased assess to health care this section, the term ‘member of the family’ tion or prosecution conducted by the for medical beneficiaries through tele- means any member of the family (as defined Department of Justice or certain intel- medicine. in section 2032A(e)(2)) of the decedent.’’. ligence matters, and for other pur- S. 2690 (b) CARRYOVER BASIS.—Section 1014(a)(4) of poses. At the request of Mr. LEAHY, the the Internal Revenue Code of 1986 (relating to basis of property acquired from a dece- S. 1941 name of the Senator from New Jersey dent) is amended by inserting ‘‘or 2058’’ after At the request of Mr. DODD, the name (Mr. TORRICELLI) was added as a co- ‘‘section 2031(c)’’. of the Senator from Georgia (Mr. sponsor of S. 2690, a bill to reduce the (c) CLERICAL AMENDMENT.—The table of CLELAND) was added as a cosponsor of risk that innocent persons may be exe- sections for part IV of subchapter A of chap- S. 1941, a bill to amend the Federal cuted, and for other purposes. ter 11 of the Internal Revenue Code of 1986 is Fire Prevention and Control Act of 1974 S. 2703 amended by adding at the end the following to authorize the Director of the Fed- new item: At the request of Mr. AKAKA, the eral Emergency Management Agency name of the Senator from West Vir- ‘‘Sec. 2058. Certain real property subject to to provide assistance to fire depart- ginia (Mr. ROCKEFELLER) was added as endangered species conserva- ments and fire prevention organiza- a cosponsor of S. 2703, a bill to amend tion agreement.’’. tions for the purpose of protecting the the provisions of title 39, United States (d) EFFECTIVE DATE.—The amendments public and firefighting personnel Code, relating to the manner in which made by this section shall apply to estates of against fire and fire-related hazards. pay policies and schedules and fringe decedents dying after the date of the enact- ment of this Act. S. 1957 benefit programs for postmasters are established. SEC. 204. EXPANSION OF ESTATE TAX EXCLUSION At the request of Mr. SCHUMER, the FOR REAL PROPERTY SUBJECT TO name of the Senator from South Caro- S. 2725 QUALIFIED CONSERVATION EASE- lina (Mr. HOLLINGS) was added as a co- At the request of Mr. SMITH of New MENT. sponsor of S. 1957, a bill to provide for Hampshire, the name of the Senator (a) REPEAL OF CERTAIN RESTRICTIONS ON the payment of compensation to the from Wisconsin (Mr. KOHL) was added WHERE LAND IS LOCATED.—Clause (i) of sec- tion 2031(c)(8)(A) of the Internal Revenue families of the Federal employees who as a cosponsor of S. 2725, a bill to pro- Code of 1986 (defining land subject to a quali- were killed in the crash of a United vide for a system of sanctuaries for fied conservation easement) is amended to States Air Force CT–43A aircraft on chimpanzees that have been designated read as follows: April 3, 1996, near Dubrovnik, Croatia, as being no longer needed in research ‘‘(i) which is located in the United States carrying Secretary of Commerce Ron- conducted or supported by the Public or any possession of the United States,’’. ald H. Brown and 34 others. Health Service, and for other purposes. (b) EFFECTIVE DATE.—The amendments S. 2003 S. 2903 made by this section shall apply to estates of decedents dying after the date of the enact- At the request of Mr. JOHNSON, the At the request of Mr. ABRAHAM, the ment of this Act. name of the Senator from Georgia (Mr. name of the Senator from Texas (Mrs. f MILLER) was added as a cosponsor of S. HUTCHISON) was added as a cosponsor of 2003, a bill to restore health care cov- S. 2903, a bill to amend the Internal ADDITIONAL COSPONSORS erage to retired members of the uni- Revenue Code of 1986 to expand the S. 482 formed services. child tax credit. At the request of Mr. ABRAHAM, the S. 2225 S. 2967 name of the Senator from Texas (Mrs. At the request of Mr. GRASSLEY, the At the request of Mr. MURKOWSKI, the HUTCHISON) was added as a cosponsor of names of the Senator from Michigan name of the Senator from North Caro- S. 482, a bill to amend the Internal (Mr. ABRAHAM) and the Senator from lina (Mr. HELMS) was added as a co- Revenue Code of 1986 to repeal the in- New Hampshire (Mr. SMITH) were added sponsor of S. 2967, a bill to amend the crease in the tax on the social security as cosponsors of S. 2225, a bill to amend Internal Revenue Code of 1986 to facili- benefits. the Internal Revenue Code of 1986 to tate competition in the electric power S. 1536 allow individuals a deduction for quali- industry. At the request of Mr. DEWINE, the fied long-term care insurance pre- S. 3018 names of the Senator from Arkansas miums, use of such insurance under At the request of Mr. TORRICELLI, the (Mr. HUTCHINSON), the Senator from cafeteria plans and flexible spending name of the Senator from Wisconsin Delaware (Mr. BIDEN), the Senator arrangements, and a credit for individ- (Mr. FEINGOLD) was added as a cospon- from Connecticut (Mr. LIEBERMAN), the uals with long-term care needs. sor of S. 3018, a bill to amend the Fed- Senator from Arkansas (Mrs. LINCOLN), S. 2330 eral Deposit Insurance Act with re- the Senator from Hawaii (Mr. AKAKA), At the request of Mr. ROTH, the spect to municipal deposits. and the Senator from West Virginia names of the Senator from Texas (Mrs. S. 3020 (Mr. BYRD) were added as cosponsors of HUTCHISON) and the Senator from Mon- At the request of Mr. GRAMS, the S. 1536, a bill to amend the Older Amer- tana (Mr. BAUCUS) were added as co- name of the Senator from Alabama icans Act of 1965 to extend authoriza- sponsors of S. 2330, a bill to amend the (Mr. SHELBY) was added as a cosponsor tions of appropriations for programs Internal Revenue Code of 1986 to repeal of S. 3020, a bill to require the Federal under the Act, to modernize programs the excise tax on telephone and other Communications Commission to revise and services for older individuals, and communication services. its regulations authorizing the oper- for other purposes. S. 2337 ation of new, low-power FM radio sta- S. 1768 At the request of Mr. SANTORUM, the tions. At the request of Mr. ABRAHAM, the name of the Senator from New Hamp- S. 3060 name of the Senator from Indiana (Mr. shire (Mr. SMITH) was added as a co- At the request of Mr. WELLSTONE, the LUGAR) was added as a cosponsor of S. sponsor of S. 2337, a bill to amend the names of the Senator from Minnesota October 3, 2000 CONGRESSIONAL RECORD — SENATE S9759 (Mr. GRAMS) and the Senator from (Mr. LAUTENBERG), the Senator from (iii) 150,000 copies in Chinese. North Carolina (Mr. HELMS) were added Georgia (Mr. CLELAND), the Senator (2) If the total printing and production as cosponsors of S. 3060, a bill to amend from Minnesota (Mr. GRAMS), and the costs of copies in paragraph (1) exceed $165,900, such number of copies of the pam- the Hmong Veterans’ Naturalization Senator from Louisiana (Mr. BREAUX) phlet as does not exceed total printing and Act of 2000 to extend the applicability were added as cosponsors of S. 3147, a production costs of $165,900, shall be printed of that Act to certain former spouses of bill to authorize the establishment, on with distribution to be allocated in the same deceased Hmong veterans. land of the Department of the Interior proportion as in paragraph (1) as it relates to S. 3095 in the District of Columbia or its envi- numbers of copies in the English language. At the request of Mr. KENNEDY, the rons, of a memorial and gardens in f honor and commemoration of Fred- name of the Senator from Iowa (Mr. SENATE RESOLUTION 364—COM- erick Douglass. HARKIN) was added as a cosponsor of S. MENDING SYDNEY, NEW SOUTH 3095, a bill to amend the Immigration S. CON. RES. 60 WALES, AUSTRALIA FOR ITS and Nationality Act to remove certain At the request of Mr. FEINGOLD, the SUCCESSFUL CONDUCT OF THE limitations on the eligibility of aliens name of the Senator from Georgia (Mr. 2000 SUMMER OLYMPIC GAMES residing in the United States to obtain MILLER) was added as a cosponsor of S. AND CONGRATULATING THE lawful permanent resident status. Con. Res. 60, a concurrent resolution UNITED STATES OLYMPIC TEAM S. 3101 expressing the sense of Congress that a FOR ITS OUTSTANDING ACCOM- At the request of Mr. ASHCROFT, the commemorative postage stamp should PLISHMENTS AT THOSE OLYM- name of the Senator from Massachu- be issued in honor of the U.S.S. Wis- PIC GAMES setts (Mr. KERRY) was added as a co- consin and all those who served aboard Mr. HATCH (for himself, Mr. BEN- sponsor of S. 3101, a bill to amend the her. Internal Revenue Code of 1986 to allow NETT, Mr. STEVENS, Ms. LANDRIEU, Mr. S. RES. 359 BROWNBACK, Mr. KERRY, Mr. HELMS, as a deduction in determining adjusted At the request of Mr. JOHNSON, his and Mr. BINGAMAN) submitted the fol- gross income the deduction for ex- name was added as a cosponsor of S. lowing resolution; which was ordered penses in connection with services as a Res. 359, a resolution designating Octo- placed on the calendar: member of a reserve component of the ber 16, 2000, to October 20, 2000 as ‘‘Na- S. RES. 364 Armed Forces of the United States. tional Teach For America Week.’’ Commending Sydney, New South Wales, S. 3112 AMENDMENT NO. 254 Australia for its successful conduct of the At the request of Mr. ABRAHAM, the At the request of Mr. ABRAHAM, the 2000 Summer Olympic Games and congratu- name of the Senator from Maine (Ms. name of the Senator from Indiana (Mr. lating the United States Olympic Team for COLLINS) was added as a cosponsor of S. its outstanding accomplishments at those LUGAR) was added as a cosponsor of 3112, a bill to amend title XVIII of the Olympic Games. amendment No. 254 proposed to S. 557, Social Security Act to ensure access to Whereas the city of Sydney, New South an original bill to provide guidance for Wales, Australia and its residents have digital mammography through ade- the designation of emergencies as a hosted a notably successful 2000 Summer quate payment under the medicare sys- part of the budget process. Olympic Games; tem. Whereas the country and citizens of Aus- AMENDMENT NO. 255 S. 3114 tralia have warmly welcomed visitors and At the request of Mr. ABRAHAM, the At the request of Mr. BAUCUS, the athletes from around the world; Whereas the ideals of the Olympic move- name of the Senator from Hawaii (Mr. name of the Senator from Indiana (Mr. LUGAR) was added as a cosponsor of ment to promote mutual understanding, INOUYE) was added as a cosponsor of S. amendment No. 255 proposed to S. 557, friendship, and peace among nations through 3114, a bill to provide loans for the im- sport have been clearly displayed during the provement of telecommunications an original bill to provide guidance for 2000 Summer Olympic Games; services on Indian reservations. the designation of emergencies as a Whereas the United States Olympic Team part of the budget process. has represented the United States with S. 3116 f sportsmanship, honor, courage, and excel- At the request of Mr. BREAUX, the lence; and names of the Senator from South Da- SENATE CONCURRENT RESOLU- Whereas the United States Olympic ath- kota (Mr. JOHNSON) and the Senator TION 114—TO AUTHORIZE THE letes have competed at the highest level of from Iowa (Mr. HARKIN) were added as PRINTING OF COPIES OF THE sport in the 2000 Summer Olympic Games, cosponsors of S. 3116, a bill to amend earning 39 gold medals, 25 silver medals, and PUBLICATION ENTITLED ‘‘THE 33 bronze medals: Now, therefore, be it the Harmonized Tariff Schedule of the UNITED STATES CAPITOL’’ AS A Resolved, That the Senate— United States to prevent circumven- SENATE DOCUMENT (1) commends the city of Sydney, New tion of the sugar tariff-rate quotas. South Wales, Australia for its successful Mr. MCCONNELL submitted the fol- S. 3133 conduct of the 2000 Summer Olympic Games; lowing concurrent resolution; which At the request of Mr. BAUCUS, the and was considered and agreed to: (2) congratulates the United States Olym- names of the Senator from South Da- S. CON. RES. 141 pic Team for its outstanding accomplish- kota (Mr. DASCHLE), the Senator from ments at the 2000 Summer Olympic Games. North Dakota (Mr. DORGAN), and the Resolved by the Senate (the House of Rep- SEC. 2. The Secretary of the Senate shall Senator from North Dakota (Mr. resentatives concurring), That (a) a revised transmit a copy of this resolution to the edition of the publication entitled ‘‘The Mayor of Sydney, New South Wales, Aus- CONRAD) were added as cosponsors of S. United States Capitol’’ (referred to as ‘‘the 3133, a bill to provide compensation to tralia, and to the United States Olympic pamphlet’’) shall be reprinted as a Senate Committee. producers for underestimation of wheat document. Mr. HATCH. Mr. President, I rise protein content. (b) There shall be printed a total of today to introduce a Senate resolution S. 3146 2,850,000 copies of the pamphlet in English commending Sydney, Australia on the At the request of Mr. CAMPBELL, the and seven other languages at a cost not to success of the 2000 Summer Olympic name of the Senator from Missouri exceed $165,900 for distribution as follows: (1)(A) 206,000 copies of the pamphlet in the Games and congratulating the U.S. (Mr. ASHCROFT) was added as a cospon- English language for the use of the Senate Olympic Team on their outstanding sor of S. 3146, a bill to preserve the sov- with 2,000 copies distributed to each Member; performance. ereignty of the United States over pub- (B) 886,000 copies of the pamphlet in the Once every two years, we have the lic lands and acquired lands owned by English language for the use of the House of great opportunity to witness the the United States, and to preserve Representatives with 2,000 copies distributed world’s finest athletes display aston- State sovereignty and private property to each Member; and ishing feats of speed, strength, flexi- rights in non-Federal lands sur- (C) 1,758,000 copies of the pamphlet for dis- bility and grace. There is no main tribution to the Capitol Guide Service in the rounding those public lands and ac- event quite like the Olympics and the quired lands. following languages: (i) 908,000 copies in English; 2000 Summer Olympic Games in Syd- S. 3147 (ii) 100,000 copies in each of the following ney, Australia, left a remarkable im- At the request of Mr. ROBB, the seven languages: Spanish, German, French, pression on all of us over the past sev- names of the Senator from New Jersey Russian, Japanese, Italian, and Korean; and eral weeks. S9760 CONGRESSIONAL RECORD — SENATE October 3, 2000 On behalf of the United States Sen- But, the Olympics is not only about SENATE RESOLUTION 365—EX- ate, I express deep appreciation to the winning medals. Logan Tom, from Salt PRESSING THE SENSE OF THE city and residents of Sydney, Aus- Lake City who now attends Stanford SENATE REGARDING RECENT tralia, for being such superb hosts for University, led the U.S. Women’s ELECTIONS IN THE FEDERAL RE- the Summer Olympic Games. Planning volleyball team to a terrific—and unex- PUBLIC OF YUGOSLAVIA, AND and organizing such a two-week, multi- FOR OTHER PURPOSES pected—fourth place finish. None of the venue event—which is immediately fol- sports handicappers gave this team Mr. VOINOVICH (for himself, Mr. lowed by the Paralympic Games—is a BIDEN, Mr. LUGAR, Mr. HAGEL, Mr. daunting and monumental task. The much of a chance. Yet, they fought their way to the semifinals and SMITH of Oregon, Mr. LAUTENBERG, and Australians can be extremely proud of Ms. LANDRIEU) submitted the following through a tough five-set match with their efforts, which, by all accounts, resolution; which was referred to the were extraordinary. Russia. Committee on Foreign Relations: We in Salt Lake City will be striving Utah is proud to be the host of the S. RES. 365 to put on an Olympic Winter Games upcoming 2002 Winter Olympic Games that equals Sydney in both efficiency Whereas the Federal Republic of Yugo- in Salt Lake City. We hope to follow slavia held municipal, parliamentary, and and hospitality. presidential elections on September 24, 2000; We can also be very proud of the U.S. the example of the 2000 Games in Syd- ney, Australia, with the same enthu- Whereas Slobodan Milosevic, President of Olympic Team’s outstanding accom- the Federal Republic of Yugoslavia, is an in- plishments. Our athletes turned in ex- siasm and excitement and the same de- dicted war criminal; citing and memorable performances. votion to the ideal of the Olympic Whereas Slobodan Milosevic is largely re- All together, the U.S. Team earned 39 movement, which is ‘‘a belief that sponsible for immeasurable bloodshed, gold medals, 25 silver medals, and 33 sport can break down barriers of lan- human rights abuses, ethnic cleansing, refu- bronze medals—a total of 97 medals, gees, property destruction, and environ- guage, culture, nationality, age and sex mental destruction that has devastated which was the most of any country! and build bridges between people all southeast Europe in recent years; This demonstrates extraordinary com- over the world as a means of promoting Whereas Slobodan Milosevic has arrested, mitment to excellence. These athletes world peace.’’ intimidated, and harassed opposition figures; trained hard just to participate at this Whereas Slobodan Milosevic has prevented level of sport; many sacrificed other Some have derided the Olympic the freedom of assembly; pursuits to attain the honor of com- Games as nothing more than commer- Whereas Slobodan Milosevic has prevented peting in this premier sporting com- cialism run amok. They say that the the freedom and independence of the press petition—the Olympic Games. news coverage is too positive. They say through intimidation, arrests, fines, the de- struction of property, and jamming; There were many ‘‘Olympic mo- that the media glosses over the nega- Whereas Slobodan Milosevic and his sup- ments’’ during these Games. For in- tive elements of the Games—doping, porters refused to allow independent inter- stance, who will ever forget Rulon for example. They claim that the only national election monitors into the Federal Gardner, the Greco-Roman wrestler thing that drives athletes is the pros- Republic of Yugoslavia before the September from Wyoming, who realized his Olym- 24, 2000 elections; pect of product endorsements or profes- pic dream by defeating the one-time in- Whereas reliable reports indicate that vincible, and still great, Aleksandr sional contracts. Slobodan Milosevic and his supporters inten- Karelin, of Russia. Following the Yes, Mr. President, these elements tionally ignored internationally accepted standards for free and fair elections in order match, Gardner said, ‘‘all I could do exist at the Games. It is sad that they to control voting results and violated the was do my best.’’ Isn’t that the beauty do. There were displays of poor sports- Federal Republic of Yugoslavia’s new elec- of the Olympic Games? Athletes all manship. There were cases of doping. tion law in the tabulation of the vote; over the world giving it their all in There are, no doubt, those whose goals Whereas reliable documented reports indi- competition against tremendous odds. extend far beyond the Olympics just cate that 74 percent of the eligible voters of the Federal Republic of Yugoslavia partici- Who could forget Misty Hyman up- concluded. setting the world favorite Susie O’Neill pated in the September 24, 2000 elections; in the 200 meter butterfly? Those of us But, Mr. President, we can look at Whereas reliable documented reports based watching on television could plainly such incidents and say they taint the on official voting records indicate that Olympics as a whole endeavor. Or, we Vojislav Kostunica, President, Democratic sense the sheer surprise and joy of this Party of Serbia, defeated Slobodan Milosevic achievement. can brush them aside as few in number with more than 50 percent of the vote; and And, the athletes from other national and unrepresentative of our athletes as Whereas the people of Serbia, Kosovo, Bos- teams captured our attention as well. a body. We can erase one embarrassing nia, and Croatia have been the victims of Cathy Freeman of Australia, who stole spectacle of bad manners with the wars initiated by the Milosevic regime: Now, therefore, be it the heart of her nation in the 400 meter sight of Dot Richardson embracing her race. China’s Fu Mingxia, who made an Resolved, That the Senate hereby— Japanese opponent. We can remember amazing comeback to win gold in div- (1) congratulates the people of the Federal Marion Jones graciously congratu- Republic of Yugoslavia for the courage in ing. And, Aleksei Nemov, who cele- participating in the September 24, 2000 elec- brated the birth of his child by winning lating the winner of the women’s long jump, although Marion Jones is world tions; a gold medal in gymnastics. (2) applauds the clear decision of the peo- I am very proud of the athletes from class in every way. ple of the Federal Republic of Yugoslavia to my home state of Utah, who rep- In conclusion, Mr. President, I embrace democracy, the rule of law, and in- resented our state with dignity and strongly believe that the people of Syd- tegration into the international community by rejecting dictatorship and isolationism; honor during the Olympic Games. ney, New South Wales, Australia, de- Marcus Jensen and Doug (3) reasserts its strong desire to reestablish serve our official recognition. I know Mientkiewicz, both of the Utah Buzz, the historic friendship between the American what a monumental effort this was. and Serbian people; were members of the U.S. baseball (4) expresses its intention to support a team that defeated the heavily favored And, let us commend our U.S. Olympic Team for their successes on the field as comprehensive assistance program for the Cuban baseball team—the first time in Federal Republic of Yugoslavia to speed its Olympic history that the Cuban team well as for their fine representation of economic recovery and European integration did not win the gold medal in baseball. our country. I urge my colleagues to once a democratic government that respects Natalie Williams, also of Utah and a join me in supporting this Senate reso- the rule of law, human rights, and a market key player for the Utah Starzz, led the lution. economy is established; and (5) expresses its support for full economic U.S. women’s basketball team with 15 Mr. President, I ask unanimous con- points in the Olympic basketball final integration for the Federal Republic of sent that the resolution be placed on Yugoslavia, including access to inter- to help the U.S. win its fourth gold the Calendar. national financial institutions, once a demo- medal in women’s basketball since cratic government that respects the rule of women’s basketball became an Olym- The PRESIDING OFFICER. Without law, human rights, and a market economy is pic sport in 1976. objection, it is so ordered. established. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9761 Mr. VOINOVICH. Mr. President, I am opposition has called for people to TITLE II—INTERNATIONAL ANTI-COR- pleased to introduce a sense-of-the- stage a massive rally in Belgrade on RUPTION AND GOOD GOVERNANCE ACT Senate resolution today to congratu- Thursday, October 5, in a final push to OF 2000 late the people of the Federal Republic drive Milosevic from power. Sec. 201. Short title. The Voinovich-Biden resolution, Mr. Sec. 202. Findings and purpose. of Yugoslavia (FRY) for embracing de- Sec. 203. Development assistance policy. mocracy and the rule of law in the Sep- President, puts the United States Sen- Sec. 204. Department of the Treasury tech- tember 24, 2000 municipal, parliamen- ate on record on the side of the people nical assistance program for de- tary and presidential elections. I am of Yugoslavia and its largest nation- veloping countries. pleased to be joined by Senators BIDEN, ality, the Serbs, against Milosevic’s Sec. 205. Authorization of good governance LANDRIEU, LAUTENBERG, HAGEL, LUGAR, tyranny. programs. and GORDON SMITH in this bipartisan As I have said several times on this TITLE III—INTERNATIONAL ACADEMIC effort. floor, for the last decade our quarrel OPPORTUNITY ACT OF 2000 This resolution makes it clear that has never been with the Serbian people, Sec. 301. Short title. the Senate is eager to embrace a demo- who were allies of the United States in Sec. 302. Statement of purpose. two world wars in the twentieth cen- Sec. 303. Establishment of grant program for cratic government in Serbia that re- foreign study by American col- spects the rule of law, human rights, tury. Vojislav Kostunica, whose vic- lege students of limited finan- and a market economy. Milosevic’s tory in last month’s elections cial means. bloodletting, ethnic cleansing, and Milosevic and his cronies tried to steal Sec. 304. Report to Congress. human rights violations have forced and are now trying to deny, is an hon- Sec. 305. Authorization of appropriations. the international community, includ- est man who should be given a chance Sec. 306. Effective date. ing the United States, to impose a to cooperate with the Western democ- TITLE IV—MISCELLANEOUS PROVISIONS number of crippling sanctions on the racies. Sec. 401. Support for Overseas Cooperative FRY. In the wake of the courageous The Voinovich-Biden resolution is a Development Act. signal to all citizens of the Federal Re- Sec. 402. Funding of certain environmental September 24 vote, it is important to assistance activities of USAID. send a clear message to the Serbian public of Yugoslavia that the path to Sec. 403. Processing of applications for people that the Senate intends to as- their country’s rejoining the inter- transportation of humanitarian sist a democratic government and re- national community, and thereby to assistance abroad by the De- integrate it into the global market- restoring their shattered economy, is partment of Defense. place. This resolution sends that mes- to honor the results of the elections by Sec. 404. Working capital fund. Sec. 405. Increase in authorized number of sage. immediately and formally installing Mr. Kostunica as President. employees and representatives The historic friendship between the of the United States mission to American and Serbian people have suf- f the United Nations provided fered for too long. I look forward to AMENDMENTS SUBMITTED living quarters in New York. continuing to work with my colleagues Sec. 406. Availability of VOA and Radio in the Senate to reestablish this impor- Marti multilingual computer tant relationship by assisting a new MICROENTERPRISE FOR SELF- readable text and voice record- RELIANCE ACT OF 1999 ings. government in Serbia recover from the Sec. 407. Availability of certain materials of destruction of Milosevic’s rule. the Voice of America. Mr. BIDEN. Mr. President, I rise Sec. 408. Paul D.Coverdell Fellows Program today to join my friend from Ohio, Sen- HELMS AMENDMENT NO. 4287 Act of 2000. ator VOINOVICH, and other colleagues in Mr. DEWINE (for Mr. HELMS) pro- TITLE I—MICROENTERPRISE FOR SELF- co-sponsoring a Sense of the Senate posed an amendment to bill (H.R. 1143) RELIANCE ACT OF 2000 Resolution regarding the recent elec- to establish a program to provide as- SEC. 101. SHORT TITLE. tions in the Federal Republic of Yugo- sistance for programs of credit and This title may be cited as the ‘‘Microenter- slavia (FRY), including advocating the other financial services for microenter- prise for Self-Reliance Act of 2000’’. resumption of economic assistance, prises in developing countries, and for SEC. 102. FINDINGS AND DECLARATIONS OF POL- once democracy is restored in that other purposes; as follows: ICY. Congress makes the following findings and country. Strike all after the enacting clause and in- declarations: The Voinovich-Biden resolution con- sert the following: (1) According to the World Bank, more SECTION 1. SHORT TITLE. gratulates the people of the FRY for than 1,200,000,000 people in the developing This Act may be cited as the ‘‘Microenter- their courage in participating in the world, or one-fifth of the world’s population, prise for Self-Reliance and International September 24, 2000 elections; applauds subsist on less than $1 a day. Anti-Corruption Act of 2000’’. the clear decision of the people of the (2) Over 32,000 of their children die each SEC. 2. TABLE OF CONTENTS. day from largely preventable malnutrition FRY to embrace democracy, the rule of The table of contents for this Act is as fol- and disease. law, and integration into the inter- lows: (3)(A) Women in poverty generally have national community by rejecting dic- Sec. 1. Short title. tatorship and isolationism; reasserts larger work loads and less access to edu- Sec. 2. Table of contents. cational and economic opportunities than the strong desire of the Senate to rees- TITLE I—MICROENTERPRISE FOR SELF- their male counterparts. tablish the historic friendship between RELIANCE ACT OF 2000 (B) Directly aiding the poorest of the poor, the American and Serbian peoples; and Sec. 101. Short title. especially women, in the developing world expresses its intention to support a Sec. 102. Findings and declarations of policy. has a positive effect not only on family in- comprehensive assistance program for Sec. 103. Purposes. comes, but also on child nutrition, health Sec. 104. Definitions. and education, as women in particular rein- the FRY to speed its economic recov- Sec. 105. Microenterprise development grant vest income in their families. ery and European integration and ac- assistance. cess to international financial institu- Sec. 106. Micro- and small enterprise devel- (4)(A) The poor in the developing world, opment credits. particularly women, generally lack stable tions, once a democratic government employment and social safety nets. that respects the rule of law, human Sec. 107. United States Microfinance Loan Facility. (B) Many turn to self-employment to gen- rights, and a market economy is estab- Sec. 108. Report relating to future develop- erate a substantial portion of their liveli- lished. ment of microenterprise insti- hood. In Africa, over 80 percent of employ- Slobodan Milosevic, one of the most tutions. ment is generated in the informal sector of despicable individuals I have ever met, Sec. 109. United States Agency for Inter- the self-employed poor. is on the ropes. Even as we meet here national Development as global (C) These poor entrepreneurs are often today, tens of thousands of brave men leader and coordinator of bilat- trapped in poverty because they cannot ob- and women are refusing to work and eral and multilateral micro- tain credit at reasonable rates to build their enterprise assistance activities. asset base or expand their otherwise viable instead are demonstrating in the Sec. 110. Sense of Congress on consideration self-employment activities. streets of cities throughout Yugoslavia of Mexico as a key priority in (D) Many of the poor are forced to pay in- for Milosevic to honor the results of microenterprise funding alloca- terest rates as high as 10 percent per day to last month’s elections. The democratic tions. money lenders. S9762 CONGRESSIONAL RECORD — SENATE October 3, 2000 (5)(A) The poor are able to expand their in- institutions that provide credit to the poor- leadership among bilateral and multilateral comes and their businesses dramatically est, with loans under $300. donors in promoting microenterprise for the when they can access loans at reasonable in- (C) In order to achieve the goal of the poorest of the poor. terest rates. microcredit summit, increased investment in SEC. 104. DEFINITIONS. (B) Through the development of self-sus- microfinance institutions serving the poor- In this title: taining microfinance programs, poor people est will be critical. (1) BUSINESS DEVELOPMENT SERVICES.—The themselves can lead the fight against hunger (12) Providing the United States share of term ‘‘business development services’’ means and poverty. the global investment needed to achieve the support for the growth of microenterprises (6)(A) On February 2–4, 1997, a global goal of the microcredit summit will require through training, technical assistance, mar- Microcredit Summit was held in Wash- only a small increase in United States fund- keting assistance, improved production tech- ington, District of Columbia, to launch a ing for international microcredit programs, nologies, and other services. plan to expand access to credit for self-em- with an increased focus on institutions serv- (2) MICROENTERPRISE INSTITUTION.—The ployment and other financial and business ing the poorest. term ‘‘microenterprise institution’’ means services to 100,000,000 of the world’s poorest (13)(A) In order to reach tens of millions of an institution that provides services, includ- families, especially the women of those fami- the poorest with microcredit, it is crucial to ing microfinance, training, or business devel- lies, by 2005. While this scale of outreach expand and replicate successful microfinance opment services, for microentrepreneurs. may not be achievable in this short time-pe- institutions. (3) MICROFINANCE INSTITUTION.—The term riod, the realization of this goal could dra- (B) These institutions need assistance in ‘‘microfinance institution’’ means an insti- matically alter the face of global poverty. developing their institutional capacity to ex- tution that directly provides, or works to ex- (B) With an average family size of five, pand their services and tap commercial pand, the availability of credit, savings, and achieving this goal will mean that the bene- sources of capital. other financial services to microentre- fits of microfinance will thereby reach near- (14) Nongovernmental organizations have preneurs. ly half of the world’s more than 1,000,000,000 demonstrated competence in developing net- (4) PRACTITIONER INSTITUTION.—The term absolute poor people. works of local microfinance institutions and ‘‘practitioner institution’’ means any insti- (7)(A) Nongovernmental organizations, other assistance delivery mechanisms so tution that provides services, including such as those that comprise the Microenter- that they reach large numbers of the very microfinance, training, or business develop- prise Coalition (such as the Grameen Bank poor, and achieve financial sustainability. ment services, for microentrepreneurs, or (Bangladesh,) K–REP (Kenya), and networks (15) Recognizing that the United States provides assistance to microenterprise insti- such as Accion International, the Founda- Agency for International Development has tutions. tion for International Community Assist- developed very effective partnerships with SEC. 105. MICROENTERPRISE DEVELOPMENT ance (FINCA), and the credit union move- nongovernmental organizations, and that GRANT ASSISTANCE. ment) are successful in lending directly to the Agency will have fewer missions overseas Chapter 1 of part I of the Foreign Assist- the very poor. to carry out its work, the Agency should ance Act of 1961 (22 U.S.C. 2151 et seq.) is (B) Microfinance institutions such as place priority on investing in those non- amended by adding at the end the following new section: BRAC (Bangladesh), BancoSol (Bolivia), governmental network institutions that SEWA Bank (India), and ACEP (Senegal) are meet performance criteria through the cen- ‘‘SEC. 131. MICROENTERPRISE DEVELOPMENT regulated financial institutions that can GRANT ASSISTANCE. tral funding mechanisms of the Agency. raise funds directly from the local and inter- ‘‘(a) FINDINGS AND POLICY.—Congress finds (16) By expanding and replicating success- national capital markets. and declares that— ful microfinance institutions, it should be (8)(A) Microenterprise institutions not ‘‘(1) the development of microenterprise is possible to create a global infrastructure to only reduce poverty, but also reduce the de- a vital factor in the stable growth of devel- provide financial services to the world’s pendency on foreign assistance. oping countries and in the development of poorest families. (B) Interest income on the credit portfolio free, open, and equitable international eco- (17)(A) The United States can provide lead- is used to pay recurring institutional costs, nomic systems; ership to other bilateral and multilateral de- assuring the long-term sustainability of de- ‘‘(2) it is therefore in the best interest of velopment assistance. velopment agencies as such agencies expand the United States to assist the development (9) Microfinance institutions leverage for- their support to the microenterprise sector. of microenterprises in developing countries; eign assistance resources because loans are (B) The United States should seek to im- and recycled, generating new benefits to program prove coordination among G–7 countries in ‘‘(3) the support of microenterprise can be participants. the support of the microenterprise sector in served by programs providing credit, savings, (10)(A) The development of sustainable order to leverage the investment of the training, technical assistance, and business microfinance institutions that provide credit United States with that of other donor na- development services. and training, and mobilize domestic savings, tions. ‘‘(b) AUTHORIZATION.— is a critical component to a global strategy (18) Through increased support for micro- ‘‘(1) IN GENERAL.—In carrying out this part, of poverty reduction and broad-based eco- enterprise, especially credit for the poorest, the President is authorized to provide grant nomic development. the United States can continue to play a assistance for programs to increase the (B) In the efforts of the United States to leadership role in the global effort to expand availability of credit and other services to lead the development of a new global finan- financial services and opportunity to microenterprises lacking full access to cap- cial architecture, microenterprise should 100,000,000 of the poorest families on the ital training, technical assistance, and busi- play a vital role. The recent shocks to inter- planet. ness development services, through— national financial markets demonstrate how SEC. 103. PURPOSES. ‘‘(A) grants to microfinance institutions the financial sector can shape the destiny of The purposes of this title are— for the purpose of expanding the availability nations. Microfinance can serve as a power- (1) to make microenterprise development of credit, savings, and other financial serv- ful tool for building a more inclusive finan- an important element of United States for- ices to microentrepreneurs; cial sector which serves the broad majority eign economic policy and assistance; ‘‘(B) grants to microenterprise institutions of the world’s population including the very (2) to provide for the continuation and ex- for the purpose of training, technical assist- poor and women and thus generate more so- pansion of the commitment of the United ance, and business development services for cial stability and prosperity. States Agency for International Develop- microenterprises to enable them to make (C) Over the last two decades, the United ment to the development of microenterprise better use of credit, to better manage their States has been a global leader in promoting institutions as outlined in its 1994 Micro- enterprises, and to increase their income and the global microenterprise sector, primarily enterprise Initiative; build their assets; through its development assistance pro- (3) to support and develop the capacity of ‘‘(C) capacity-building for microenterprise grams at the United States Agency for Inter- United States and indigenous nongovern- institutions in order to enable them to bet- national Development. Additionally, the De- mental organization intermediaries to pro- ter meet the credit and training needs of partment of the Treasury and the Depart- vide credit, savings, training, technical as- microentrepreneurs; and ment of State have used their authority to sistance, and business development services ‘‘(D) policy and regulatory programs at the promote microenterprise in the development to microentrepreneurs; country level that improve the environment programs of international financial institu- (4) to emphasize financial services and sub- for microentrepreneurs and microenterprise tions and the United Nations. stantially increase the amount of assistance institutions that serve the poor and very (11)(A) In 1994, the United States Agency devoted to both financial services and com- poor. for International Development launched the plementary business development services ‘‘(2) IMPLEMENTATION.—Assistance author- ‘‘Microenterprise Initiative’’ in partnership designed to reach the poorest people in de- ized under paragraph (1) (A) and (B) shall be with the Congress. veloping countries, particularly women; and provided through organizations that have a (B) The initiative committed to expanding (5) to encourage the United States Agency capacity to develop and implement micro- funding for the microenterprise programs of for International Development to coordinate enterprise programs, including the Agency, and set a goal that, by the end microfinance policy, in consultation with particularly— of fiscal year 1996, one-half of all microenter- the Department of the Treasury and the De- ‘‘(A) United States and indigenous private prise resources would support programs and partment of State, and to provide global and voluntary organizations; October 3, 2000 CONGRESSIONAL RECORD — SENATE S9763 ‘‘(B) United States and indigenous credit poorest of the poor, including proposed legis- ‘‘(3) The extent to which the entity is ori- unions and cooperative organizations; or lation containing amendments to enhance ented toward working directly with poor ‘‘(C) other indigenous governmental and the sustainable development impact of such women. nongovernmental organizations. assistance, as described in paragraph (3). ‘‘(4) The extent to which the entity recov- ‘‘(3) TARGETED ASSISTANCE.—In carrying ‘‘(d) LEVEL OF ASSISTANCE.—Of the funds ers its cost of lending. out sustainable poverty-focused programs made available under this part, the FREE- ‘‘(5) The extent to which the entity imple- under paragraph (1), 50 percent of all micro- DOM Support Act, and the Support for East ments a plan to become financially sustain- enterprise resources shall be targeted to very European Democracy (SEED) Act of 1989, in- able. poor entrepreneurs, defined as those living in cluding local currencies derived from such ‘‘(d) ADDITIONAL REQUIREMENT.—Assistance the bottom 50 percent below the poverty line funds, there are authorized to be available provided under this section may only be used as established by the national government of $155,000,000 for each of the fiscal years 2001 to support micro- and small enterprise pro- the country. Specifically, such resources and 2002, to carry out this section. grams and may not be used to support pro- shall be used for— ‘‘(e) DEFINITIONS.—In this section: grams not directly related to the purposes ‘‘(A) direct support of programs under this ‘‘(1) BUSINESS DEVELOPMENT SERVICES.—The described in subsection (b). subsection through practitioner institutions term ‘business development services’ means ‘‘(e) PROCUREMENT PROVISION.—Assistance that— support for the growth of microenterprises may be provided under this section without ‘‘(i) provide credit and other financial serv- through training, technical assistance, mar- regard to section 604(a). ices to entrepreneurs who are very poor, keting assistance, improved production tech- ‘‘(f) AVAILABILITY OF FUNDS.— with loans in 1995 United States dollars of— nologies, and other services. ‘‘(1) IN GENERAL.—Of the amounts author- ‘‘(I) $1,000 or less in the Europe and Eurasia ‘‘(2) MICROENTERPRISE INSTITUTION.—The ized to be available to carry out section 131, region; term ‘microenterprise institution’ means an there are authorized to be available $1,500,000 ‘‘(II) $400 or less in the Latin America re- institution that provides services, including for each of fiscal years 2001 and 2002 to carry gion; and microfinance, training, or business develop- out this section. ‘‘(III) $300 or less in the rest of the world; ment services, for microentrepreneurs. ‘‘(2) COVERAGE OF SUBSIDY COSTS.— and ‘‘(3) MICROFINANCE INSTITUTION.—The term Amounts authorized to be available under ‘‘(ii) can cover their costs in a reasonable ‘microfinance institution’ means an institu- paragraph (1) shall be made available to time period; or tion that directly provides, or works to ex- cover the subsidy cost, as defined in section ‘‘(B) demand-driven business development pand, the availability of credit, savings, and 502(5) of the Federal Credit Reform Act of programs that achieve reasonable cost recov- other financial services to microentre- 1990, for activities under this section.’’. ery that are provided to clients holding pov- preneurs. SEC. 107. UNITED STATES MICROFINANCE LOAN erty loans (as defined by the regional pov- ‘‘(4) PRACTITIONER INSTITUTION.—The term FACILITY. erty loan limitations in subparagraph (A)(i)), ‘practitioner institution’ means any institu- (a) IN GENERAL.—Chapter 1 of part I of the whether they are provided by microfinance tion that provides services, including micro- Foreign Assistance Act of 1961 (22 U.S.C. 2151 institutions or by specialized business devel- finance, training, or business development et seq.), as amended by section 105 of this opment services providers. services, for microentrepreneurs, or provides Act, is further amended by adding at the end ‘‘(4) SUPPORT FOR CENTRAL MECHANISMS.— assistance to microenterprise institutions.’’. the following new section: The President should continue support for SEC. 106. MICRO- AND SMALL ENTERPRISE DE- ‘‘SEC. 132. UNITED STATES MICROFINANCE LOAN central mechanisms and missions, as appro- VELOPMENT CREDITS. FACILITY. priate, that— Section 108 of the Foreign Assistance Act ‘‘(a) ESTABLISHMENT.—The Administrator ‘‘(A) provide technical support for field of 1961 (22 U.S.C. 2151f) is amended to read as is authorized to establish a United States missions; follows: Microfinance Loan Facility (in this section ‘‘(B) strengthen the institutional develop- ‘‘SEC. 108. MICRO- AND SMALL ENTERPRISE DE- referred to as the ‘Facility’) to pool and ment of the intermediary organizations de- VELOPMENT CREDITS. manage the risk from natural disasters, war scribed in paragraph (2); ‘‘(a) FINDINGS AND POLICY.—Congress finds or civil conflict, national financial crisis, or ‘‘(C) share information relating to the pro- and declares that— short-term financial movements that threat- vision of assistance authorized under para- ‘‘(1) the development of micro- and small en the long-term development of United graph (1) between such field missions and enterprises are a vital factor in the stable States-supported microfinance institutions. intermediary organizations; and growth of developing countries and in the de- ‘‘(b) DISBURSEMENTS.— ‘‘(D) support the development of nonprofit velopment and stability of a free, open, and ‘‘(1) IN GENERAL.—The Administrator shall global microfinance networks, including equitable international economic system; make disbursements from the Facility to credit union systems, that— and United States-supported microfinance insti- ‘‘(i) are able to deliver very small loans ‘‘(2) it is, therefore, in the best interests of tutions to prevent the bankruptcy of such through a significant grassroots infrastruc- the United States to assist the development institutions caused by— ture based on market principles; and of the enterprises of the poor in developing ‘‘(A) natural disasters; ‘‘(ii) act as wholesale intermediaries pro- countries and to engage the United States ‘‘(B) national wars or civil conflict; or viding a range of services to microfinance re- private sector in that process. ‘‘(C) national financial crisis or other tail institutions, including financing, tech- ‘‘(b) PROGRAM.—To carry out the policy set short-term financial movements that threat- nical assistance, capacity-building, and safe- forth in subsection (a), the President is au- en the long-term development of United ty and soundness accreditation. thorized to provide assistance to increase the States-supported microfinance institutions. ‘‘(5) LIMITATION.—Assistance provided availability of credit to micro- and small en- ‘‘(2) FORM OF ASSISTANCE.—Assistance under this subsection may only be used to terprises lacking full access to credit, in- under this section shall be in the form of support microenterprise programs and may cluding through— loans or loan guarantees for microfinance in- not be used to support programs not directly ‘‘(1) loans and guarantees to credit institu- stitutions that demonstrate the capacity to related to the purposes described in para- tions for the purpose of expanding the avail- resume self-sustained operations within a graph (1). ability of credit to micro- and small enter- reasonable time period. ‘‘(c) MONITORING SYSTEM.—In order to prises; ‘‘(3) CONGRESSIONAL NOTIFICATION PROCE- maximize the sustainable development im- ‘‘(2) training programs for lenders in order DURES.—During each of the fiscal years 2001 pact of the assistance authorized under sub- to enable them to better meet the credit and 2002, funds may not be made available section (b)(1), the Administrator of the agen- needs of microentrepreneurs; and from the Facility until 15 days after notifica- cy primarily responsible for administering ‘‘(3) training programs for microentre- tion of the proposed availability of the funds this part shall establish a monitoring system preneurs in order to enable them to make has been provided to the congressional com- that— better use of credit and to better manage mittees specified in section 634A in accord- ‘‘(1) establishes performance goals for such their enterprises. ance with the procedures applicable to re- assistance and expresses such goals in an ob- ‘‘(c) ELIGIBILITY CRITERIA.—The Adminis- programming notifications under that sec- jective and quantifiable form, to the extent trator of the agency primarily responsible tion. feasible; for administering this part shall establish ‘‘(c) GENERAL PROVISIONS.— ‘‘(2) establishes performance indicators to criteria for determining which credit institu- ‘‘(1) POLICY PROVISIONS.—In providing the be used in measuring or assessing the tions described in subsection (b)(1) are eligi- credit assistance authorized by this section, achievement of the goals and objectives of ble to carry out activities, with respect to the Administrator should apply, as appro- such assistance; micro- and small enterprises, assisted under priate, the policy provisions in this part that ‘‘(3) provides a basis for recommendations this section. Such criteria may include the are applicable to development assistance ac- for adjustments to such assistance to en- following: tivities. hance the sustainable development impact of ‘‘(1) The extent to which the recipients of ‘‘(2) DEFAULT AND PROCUREMENT PROVI- such assistance, particularly the impact of credit from the entity do not have access to SIONS.— such assistance on the very poor, particu- the local formal financial sector. ‘‘(A) DEFAULT PROVISION.—The provisions larly poor women; and ‘‘(2) The extent to which the recipients of of section 620(q), or any comparable provi- ‘‘(4) provides a basis for recommendations credit from the entity are among the poorest sion of law, shall not be construed to pro- for adjustments to measures for reaching the people in the country. hibit assistance to a country in the event S9764 CONGRESSIONAL RECORD — SENATE October 3, 2000

that a private sector recipient of assistance (b) CONTENTS.—The report described in sub- United States with that of other donor na- furnished under this section is in default in section (a)— tions. its payment to the United States for the pe- (1) shall include how the President, in con- (b) SENSE OF CONGRESS.—It is the sense of riod specified in such section. sultation with the Administrator of the Congress that— ‘‘(B) PROCUREMENT PROVISION.—Assistance United States Agency for International De- (1) the Administrator of the United States may be provided under this section without velopment, the Secretary of State, and the Agency for International Development and regard to section 604(a). Secretary of the Treasury, will develop a the Secretary of State should seek to sup- ‘‘(3) TERMS AND CONDITIONS OF CREDIT AS- comprehensive strategy for advancing the port and strengthen the effectiveness of SISTANCE.— global microenterprise sector in a way that microfinance activities in United Nations ‘‘(A) IN GENERAL.—Credit assistance pro- maintains market principles while ensuring agencies, such as the United Nations Devel- vided under this section shall be offered on that the very poor overseas, particularly opment Program (UNDP), which have pro- such terms and conditions, including fees women, obtain access to financial services vided key leadership in developing the charged, as the Administrator may deter- overseas; microenterprise sector; and mine. (2) shall provide guidelines and rec- (2) the Secretary of the Treasury should in- ‘‘(B) LIMITATION ON PRINCIPAL AMOUNT OF ommendations for— struct each United States Executive Director FINANCING.—The principal amount of loans (A) instruments to assist microenterprise of the multilateral development banks made or guaranteed under this section in networks to develop multi-country and re- (MDBs) to advocate the development of a co- any fiscal year, with respect to any single gional microlending programs; herent and coordinated strategy to support event, may not exceed $30,000,000. (B) technical assistance to foreign govern- the microenterprise sector and an increase of ‘‘(C) EXCEPTION.—No payment may be ments, foreign central banks, and regulatory multilateral resource flows for the purposes made under any guarantee issued under this entities to improve the policy environment of building microenterprise retail and whole- section for any loss arising out of fraud or for microfinance institutions, and to sale intermediaries. misrepresentation for which the party seek- strengthen the capacity of supervisory bod- SEC. 110. SENSE OF CONGRESS ON CONSIDER- ing payment is responsible. ies to supervise microfinance institutions; ATION OF MEXICO AS A KEY PRI- ORITY IN MICROENTERPRISE FUND- ‘‘(4) FULL FAITH AND CREDIT.—All guaran- (C) the potential for Federal chartering of tees issued under this section shall con- ING ALLOCATIONS. United States-based international micro- (a) FINDINGS.—Congress makes the fol- stitute obligations, in accordance with the finance network institutions, including pro- terms of such guarantees, of the United lowing findings: posed legislation; (1) An estimated 45,000,000 of Mexico’s States of America, and the full faith and (D) instruments to increase investor con- credit of the United States of America is 100,000,000 population currently lives below fidence in microfinance institutions which the poverty line, accounting for 20 percent of hereby pledged for the full payment and per- would strengthen the long-term financial po- formance of such obligations to the extent of all poor in Latin America. sition of the microfinance institutions and (2) Mexico cannot create enough salaried the guarantee. attract capital from private sector entities ‘‘(d) FUNDING.— jobs to absorb new workers entering the and individuals, such as a rating system for ‘‘(1) ALLOCATION OF FUNDS.—Of the labor force. microfinance institutions and local credit amounts made available to carry out this (3) While many poor families depend on bureaus; part for the fiscal year 2001, up to $5,000,000 microenterprise initiatives to generate a (E) an agenda for integrating microfinance may be made available for— livelihood, the United States Agency for into United States foreign policy initiatives ‘‘(A) the subsidy cost, as defined in section International Development currently has 2 seeking to develop and strengthen the global 502(5) of the Federal Credit Reform Act of microcredit projects in Mexico, receiving 1990, to carry out this section; and finance sector; and less than one percent of overall microenter- ‘‘(B) the administrative costs to carry out (F) innovative instruments to attract prise funding in Latin America and the Car- this section. funds from the capital markets, such as in- ibbean during the last decade. struments for leveraging funds from the ‘‘(2) RELATION TO OTHER FUNDING.— (4) Mexico’s microenterprise activity has Amounts made available under paragraph (1) local commercial banking sector, and the been constrained because its financial insti- are in addition to amounts available under securitization of microloan portfolios; and tutions cannot expand financial services to a any other provision of law to carry out this (3) shall include a section that assesses the larger clientele due to a lack of capital, inef- section. need for a microenterprise accelerated ficient financial and administrative manage- ‘‘(e) DEFINITIONS.—In this section: growth fund and that includes— ment, and a lack of institutional support for ‘‘(1) ADMINISTRATOR.—The term ‘Adminis- (A) a description of the benefits of such a microfinance institutions’ particular needs. trator’ means the Administrator of the agen- fund; (5) Mexican nongovernmental organiza- cy primarily responsible for administering (B) an identification of which microenter- tions, such as Compartamos, have dem- this part. prise institutions might become eligible for onstrated competence in developing local ‘‘(2) APPROPRIATE CONGRESSIONAL COMMIT- assistance from such fund; microfinance programs. TEES.—The term ‘appropriate congressional (C) a description of how such a fund could (6) On July 2, 2000, Vicente Fox Quesada of committees’ means the Committee on For- be administered; the Alliance for Change was elected Presi- eign Relations of the Senate and the Com- (D) a recommendation on which agency or dent of the United Mexican States. mittee on International Relations of the agencies of the United States Government (7) The President-elect of Mexico has iden- House of Representatives. should administer the fund and within which tified entrepreneurship and the start-up of ‘‘(3) UNITED STATES-SUPPORTED MICRO- such agency the fund should be located; and new microcredit institutions as key eco- FINANCE INSTITUTION.—The term ‘United (E) a recommendation on how soon it nomic priorities. States-supported microfinance institution’ might be necessary to establish such a fund (8) Microenterprise and entrepreneurial means a financial intermediary that has re- in order to provide the support necessary for initiatives have proven to be successful com- ceived funds made available under part I of microenterprise institutions involved in ponents of free market development and eco- this Act for fiscal year 1980 or any subse- microenterprise development. nomic stability. quent fiscal year.’’. (c) APPROPRIATE CONGRESSIONAL COMMIT- (b) SENSE OF CONGRESS.—It is the sense of (b) REPORT.—Not later than 120 days after TEES DEFINED.—In this section, the term Congress that— the date of enactment of this Act, the Ad- ‘‘appropriate congressional committees’’ (1) providing Mexico’s poor with economic ministrator of the United States Agency for means the Committee on International Rela- opportunity and microfinance services is International Development shall submit to tions of the House of Representatives and fundamental to Mexico’s economic develop- the Committee on Foreign Relations of the the Committee on Foreign Relations of the ment; Senate and the Committee on International Senate. (2) microenterprise can have a positive im- Relations of the House of Representatives a SEC. 109. UNITED STATES AGENCY FOR INTER- pact on Mexico’s free market development; report on the policies, rules, and regulations NATIONAL DEVELOPMENT AS GLOB- and of the United States Microfinance Loan Fa- AL LEADER AND COORDINATOR OF (3) the United States Agency for Inter- cility established under section 132 of the BILATERAL AND MULTILATERAL national Development should consider Mex- MICROENTERPRISE ASSISTANCE AC- Foreign Assistance Act of 1961, as added by ico as a key priority in its microenterprise subsection (a). TIVITIES. (a) FINDINGS AND POLICY.—Congress finds funding allocations. SEC. 108. REPORT RELATING TO FUTURE DEVEL- TITLE II—INTERNATIONAL ANTI-CORRUP- OPMENT OF MICROENTERPRISE IN- and declares that— STITUTIONS. (1) the United States can provide leader- TION AND GOOD GOVERNANCE ACT OF (a) REPORT.—Not later than 180 days after ship to other bilateral and multilateral de- 2000 the date of the enactment of this Act, the velopment agencies as such agencies expand SEC. 201. SHORT TITLE. President shall submit to the appropriate their support to the microenterprise sector; This title may be cited as the ‘‘Inter- congressional committees a report on the and national Anti-Corruption and Good Govern- most cost-effective methods and measure- (2) the United States should seek to im- ance Act of 2000’’. ments for increasing the access of poor peo- prove coordination among G–7 countries in SEC. 202. FINDINGS AND PURPOSE. ple overseas to credit, other financial serv- the support of the microenterprise sector in (a) FINDINGS.—Congress finds the fol- ices, and related training. order to leverage the investment of the lowing: October 3, 2000 CONGRESSIONAL RECORD — SENATE S9765 (1) Widespread corruption endangers the party monitoring of government procure- et seq.), as amended by sections 105 and 107, stability and security of societies, under- ment processes, and anti-corruption agen- is further amended by adding at the end the mines democracy, and jeopardizes the social, cies; following: political, and economic development of a so- (C) promoting responsive, transparent, and ‘‘SEC. 133. PROGRAMS TO ENCOURAGE GOOD ciety. accountable legislatures that ensure legisla- GOVERNANCE. (2) Corruption facilitates criminal activi- tive oversight and whistle-blower protection; ‘‘(a) ESTABLISHMENT OF PROGRAMS.— ties, such as money laundering, hinders eco- (D) promoting judicial reforms that crim- ‘‘(1) IN GENERAL.—The President is author- nomic development, inflates the costs of inalize corruption and promoting law en- ized to establish programs that combat cor- doing business, and undermines the legit- forcement that prosecutes corruption; ruption, improve transparency and account- imacy of the government and public trust. (E) fostering business practices that pro- ability, and promote other forms of good (3) In January 1997 the United Nations Gen- mote transparent, ethical, and competitive governance in countries described in para- eral Assembly adopted a resolution urging behavior in the private sector through the graph (2). member states to carefully consider the development of an effective legal framework ‘‘(2) COUNTRIES DESCRIBED.—A country de- problems posed by the international aspects for commerce, including anti-bribery laws, scribed in this paragraph is a country that is of corrupt practices and to study appropriate commercial codes that incorporate inter- eligible to receive assistance under this part legislative and regulatory measures to en- national standards for business practices, (including chapter 4 of part II of this Act) or sure the transparency and integrity of finan- and protection of intellectual property the Support for East European Democracy cial systems. rights; and (SEED) Act of 1989. (4) The United States was the first country (F) promoting free and fair national, state, ‘‘(3) PRIORITY.—In carrying out paragraph to criminalize international bribery through and local elections. (1), the President shall give priority to estab- the enactment of the Foreign Corrupt Prac- (b) PURPOSE.—The purpose of this title is lishing programs in countries that received a tices Act of 1977 and United States leader- to ensure that United States assistance pro- significant amount of United States foreign ship was instrumental in the passage of the grams promote good governance by assisting assistance for the prior fiscal year, or in Organization for Economic Cooperation and other countries to combat corruption which the United States has a significant Development (OECD) Convention on Combat- throughout society and to improve trans- economic interest, and that continue to have ting Bribery of Foreign Public Officials in parency and accountability at all levels of the most persistent problems with public and International Business Transactions. government and throughout the private sec- private corruption. In determining which (5) The Vice President, at the Global tor. countries have the most persistent problems Forum on Fighting Corruption in 1999, de- with public and private corruption under the SEC. 203. DEVELOPMENT ASSISTANCE POLICY. clared corruption to be a direct threat to the preceding sentence, the President shall take (a) GENERAL POLICY.—Section 101(a) of the rule of law and the Secretary of State de- into account criteria such as the Trans- clared corruption to be a matter of profound Foreign Assistance Act of 1961 (22 U.S.C. parency International Annual Corruption political and social consequence for our ef- 2151(a)) is amended in the fifth sentence— Perceptions Index, standards and codes set forts to strengthen democratic governments. (1) by striking ‘‘four’’ and inserting ‘‘five’’; forth by the International Bank for Recon- (6) The Secretary of State, at the Inter- (2) by striking ‘‘and’’ at the end of para- struction and Development and the Inter- American Development Bank’s annual meet- graph (3); national Monetary Fund, and other relevant ing in March 2000, declared that despite cer- (3) in paragraph (4), by striking the period criteria. tain economic achievements, democracy is at the end and inserting ‘‘; and’’; and ‘‘(4) RELATION TO OTHER LAWS.— being threatened as citizens grow weary of (4) by adding at the end the following: ‘‘(A) IN GENERAL.—Assistance provided for the corruption and favoritism of their offi- ‘‘(5) the promotion of good governance countries under programs established pursu- cial institutions and that efforts must be through combating corruption and improv- ant to paragraph (1) may be made available made to improve governance if respect for ing transparency and accountability.’’. notwithstanding any other provision of law democratic institutions is to be regained. (b) DEVELOPMENT ASSISTANCE POLICY.— that restricts assistance to foreign coun- (7) In May 1996 the Organization of Amer- Section 102(b) of the Foreign Assistance Act tries. Assistance provided under a program ican States (OAS) adopted the Inter-Amer- of 1961 (22 U.S.C. 2151–1(b)) is amended— established pursuant to paragraph (1) for a ican Convention Against Corruption requir- (1) in paragraph (4)— country that would otherwise be restricted ing countries to provide various forms of (A) by striking ‘‘and’’ at the end of sub- from receiving such assistance but for the international cooperation and assistance to paragraph (E); preceding sentence may not be provided di- facilitate the prevention, investigation, and (B) in subparagraph (F), by striking the pe- rectly to the government of the country. prosecution of acts of corruption. riod at the end and inserting ‘‘; and’’; and ‘‘(B) EXCEPTION.—Subparagraph (A) does (8) Independent media, committed to fight- (C) by adding at the end the following: not apply with respect to— ing corruption and trained in investigative ‘‘(G) progress in combating corruption and ‘‘(i) section 620A of this Act or any com- journalism techniques, can both educate the improving transparency and accountability parable provision of law prohibiting assist- public on the costs of corruption and act as in the public and private sector.’’; and ance to countries that support international a deterrent against corrupt officials. (2) by adding at the end the following: terrorism; or (9) Competent and independent judiciary, ‘‘(17) Economic reform and development of ‘‘(ii) section 907 of the Freedom for Russia founded on a merit-based selection process effective institutions of democratic govern- and Emerging Eurasian Democracies and and trained to enforce contracts and protect ance are mutually reinforcing. The success- Open Markets Support Act of 1992. property rights, is critical for creating a pre- ful transition of a developing country is de- ‘‘(b) SPECIFIC PROJECTS AND ACTIVITIES.— dictable and consistent environment for pendent upon the quality of its economic and The programs established pursuant to sub- transparency in legal procedures. governance institutions. Rule of law, mecha- section (a) shall include, to the extent appro- (10) Independent and accountable legisla- nisms of accountability and transparency, priate, projects and activities that— tures, responsive political parties, and trans- security of person, property, and invest- ‘‘(1) support responsible independent media parent electoral processes, in conjunction ments, are but a few of the critical govern- to promote oversight of public and private with professional, accountable, and trans- ance and economic reforms that underpin institutions; parent financial management and procure- the sustainability of broad-based economic ‘‘(2) implement financial disclosure among ment policies and procedures, are essential growth. Programs in support of such reforms public officials, political parties, and can- to the promotion of good governance and to strengthen the capacity of people to hold didates for public office, open budgeting the combat of corruption. their governments accountable and to create processes, and transparent financial manage- (11) Transparent business frameworks, in- economic opportunity.’’. ment systems; cluding modern commercial codes and intel- SEC. 204. DEPARTMENT OF THE TREASURY TECH- ‘‘(3) support the establishment of audit of- lectual property rights, are vital to enhanc- NICAL ASSISTANCE PROGRAM FOR fices, inspectors general offices, third party ing economic growth and decreasing corrup- DEVELOPING COUNTRIES. monitoring of government procurement tion at all levels of society. Section 129(b) of the Foreign Assistance processes, and anti-corruption agencies; (12) The United States should attempt to Act of 1961 (22 U.S.C. 2151aa(b)) is amended ‘‘(4) promote responsive, transparent, and improve accountability in foreign countries, by adding at the end the following: accountable legislatures and local govern- including by— ‘‘(3) EMPHASIS ON ANTI-CORRUPTION.—Such ments that ensure legislative and local over- (A) promoting transparency and account- technical assistance shall include elements sight and whistle-blower protection; ability through support for independent designed to combat anti-competitive, uneth- ‘‘(5) promote legal and judicial reforms media, promoting financial disclosure by ical, and corrupt activities, including protec- that criminalize corruption and law enforce- public officials, political parties, and can- tion against actions that may distort or in- ment reforms and development that encour- didates for public office, open budgeting hibit transparency in market mechanisms age prosecutions of criminal corruption; processes, adequate and effective internal and, to the extent applicable, privatization ‘‘(6) assist in the development of a legal control systems, suitable financial manage- procedures.’’. framework for commercial transactions that ment systems, and financial and compliance SEC. 205. AUTHORIZATION OF GOOD GOVERN- fosters business practices that promote reporting; ANCE PROGRAMS. transparent, ethical, and competitive behav- (B) supporting the establishment of audit (a) IN GENERAL.—Chapter 1 of part I of the ior in the economic sector, such as commer- offices, inspectors general offices, third Foreign Assistance Act of 1961 (22 U.S.C. 2151 cial codes that incorporate international S9766 CONGRESSIONAL RECORD — SENATE October 3, 2000 standards and protection of intellectual such students of demonstrated financial need through ownership and control of business property rights; to assume significant roles in the increas- enterprises and through the mobilization of ‘‘(7) promote free and fair national, state, ingly global economy. local capital and savings and such organiza- and local elections; SEC. 303. ESTABLISHMENT OF GRANT PROGRAM tions should be fully utilized in fostering free ‘‘(8) foster public participation in the legis- FOR FOREIGN STUDY BY AMERICAN market principles and the adoption of self- lative process and public access to govern- COLLEGE STUDENTS OF LIMITED FI- help approaches to development. ment information; and NANCIAL MEANS. (3) The United States seeks to encourage ‘‘(9) engage civil society in the fight (a) ESTABLISHMENT.—Subject to the avail- broad-based economic and social develop- against corruption. ability of appropriations and under the au- ment by creating and supporting— ‘‘(c) CONDUCT OF PROJECTS AND ACTIVI- thorities of the Mutual Educational and Cul- (A) agricultural cooperatives that provide TIES.—Projects and activities under the pro- tural Exchange Act of 1961, the Secretary of a means to lift low income farmers and rural grams established pursuant to subsection (a) State shall establish and carry out a pro- people out of poverty and to better integrate may include, among other things, training gram in each fiscal year to award grants of them into national economies; and technical assistance (including drafting up to $5,000, to individuals who meet the re- (B) credit union networks that serve people of anti-corruption, privatization, and com- quirements of subsection (b), toward the cost of limited means through safe savings and by petitive statutory and administrative codes), of up to one academic year of undergraduate extending credit to families and microenter- drafting of anti-corruption, privatization, study abroad. Grants under this Act shall be prises; and competitive statutory and administra- known as the ‘‘Benjamin A. Gilman Inter- (C) electric and telephone cooperatives tive codes, support for independent media national Scholarships’’. that provide rural customers with power and and publications, financing of the program (b) ELIGIBILITY.—An individual referred to telecommunications services essential to and operating costs of nongovernmental or- in subsection (a) is an individual who— economic development; ganizations that carry out such projects or (1) is a student in good standing at an in- (D) housing and community-based coopera- activities, and assistance for travel of indi- stitution of higher education in the United tives that provide low income shelter and viduals to the United States and other coun- States (as defined in section 101(a) of the work opportunities for the urban poor; and tries for such projects and activities. Higher Education Act of 1965); (E) mutual and cooperative insurance com- ‘‘(d) ANNUAL REPORT.— (2) has been accepted for up to one aca- panies that provide risk protection for life ‘‘(1) IN GENERAL.—The Secretary of State, demic year of study on a program of study and property to under-served populations in consultation with the Secretary of Com- abroad approved for credit by the student’s often through group policies. home institution; merce and the Administrator of the United (c) GENERAL PROVISIONS.— (3) is receiving any need-based student as- States Agency for International Develop- (1) DECLARATIONS OF POLICY.—The Congress ment, shall prepare and transmit to the sistance under title IV of the Higher Edu- supports the development and expansion of Committee on International Relations and cation Act of 1965; and economic assistance programs that fully uti- the Committee on Appropriations of the (4) is a citizen or national of the United lize cooperatives and credit unions, particu- House of Representatives and the Committee States. larly those programs committed to— (c) APPLICATION AND SELECTION.— on Foreign Relations and the Committee on (A) international cooperative principles, (1) Grant application and selection shall be Appropriations of the Senate an annual re- democratic governance and involvement of carried out through accredited institutions port on— women and ethnic minorities for economic of higher education in the United States or a ‘‘(A) projects and activities carried out and social development; combination of such institutions under such under programs established under subsection (B) self-help mobilization of member sav- procedures as are established by the Sec- (a) for the prior year in priority countries ings and equity and retention of profits in retary of State. identified pursuant to subsection (a)(3); and the community, except for those programs (2) In considering applications for grants ‘‘(B) projects and activities carried out that are dependent on donor financing; under this section— under programs to combat corruption, im- (C) market-oriented and value-added ac- (A) consideration of financial need shall in- prove transparency and accountability, and tivities with the potential to reach large clude the increased costs of study abroad; promote other forms of good governance es- numbers of low income people and help them and tablished under other provisions of law for enter into the mainstream economy; (B) priority consideration shall be given to the prior year in such countries. (D) strengthening the participation of applicants who are receiving Federal Pell ‘‘(2) REQUIRED CONTENTS.—The report re- rural and urban poor to contribute to their Grants under title IV of the Higher Edu- quired by paragraph (1) shall contain the fol- country’s economic development; and cation Act of 1965. lowing information with respect to each (E) utilization of technical assistance and country described in paragraph (1): SEC. 304. REPORT TO CONGRESS. training to better serve the member-owners. The Secretary of State shall report annu- ‘‘(A) A description of all United States (2) DEVELOPMENT PRIORITIES.—Section 111 Government-funded programs and initiatives ally to the Congress concerning the grant of the Foreign Assistance Act of 1961 (22 to combat corruption and improve trans- program established under this title. Each U.S.C. 2151i) is amended by adding at the end parency and accountability in the country. such report shall include the following infor- the following: ‘‘In meeting the requirement ‘‘(B) A description of United States diplo- mation for the preceding year: of the preceding sentence, specific priority matic efforts to combat corruption and im- (1) The number of participants. shall be given to the following: (2) The institutions of higher education in prove transparency and accountability in the ‘‘(1) AGRICULTURE.—Technical assistance to country. the United States that participants at- low income farmers who form and develop ‘‘(C) An analysis of major actions taken by tended. member-owned cooperatives for farm sup- the government of the country to combat (3) The institutions of higher education plies, marketing and value-added processing. outside the United States participants at- corruption and improve transparency and ac- ‘‘(2) FINANCIAL SYSTEMS.—The promotion of countability in the country. tended during their study abroad. national credit union systems through credit ‘‘(e) FUNDING.—Amounts made available to (4) The areas of study of participants. union-to-credit union technical assistance carry out the other provisions of this part SEC. 305. AUTHORIZATION OF APPROPRIATIONS. that strengthens the ability of low income (including chapter 4 of part II of this Act) There are authorized to be appropriated people and micro-entrepreneurs to save and and the Support for East European Democ- $1,500,000 for each fiscal year to carry out to have access to credit for their own eco- racy (SEED) Act of 1989 shall be made avail- this title. nomic advancement. able to carry out this section.’’. SEC. 306. EFFECTIVE DATE. ‘‘(3) INFRASTRUCTURE.—The support of (b) DEADLINE FOR INITIAL REPORT.—The ini- This title shall take effect October 1, 2000. rural electric and telecommunication co- tial annual report required by section TITLE IV—MISCELLANEOUS PROVISIONS operatives for access for rural people and vil- 133(d)(1) of the Foreign Assistance Act of SEC. 401. SUPPORT FOR OVERSEAS COOPERA- lages that lack reliable electric and tele- 1961, as added by subsection (a), shall be communications services. transmitted not later than 180 days after the TIVE DEVELOPMENT ACT. ‘‘(4) HOUSING AND COMMUNITY SERVICES.— date of the enactment of this Act. (a) SHORT TITLE.—This section may be cited as the ‘‘Support for Overseas Coopera- The promotion of community-based coopera- TITLE III—INTERNATIONAL ACADEMIC tive Development Act’’. tives which provide employment opportuni- OPPORTUNITY ACT OF 2000 (b) FINDINGS.—The Congress makes the fol- ties and important services such as health SEC. 301. SHORT TITLE. lowing findings: clinics, self-help shelter, environmental im- This title may be cited as the ‘‘Inter- (1) It is in the mutual economic interest of provements, group-owned businesses, and national Academic Opportunity Act of 2000’’. the United States and peoples in developing other activities.’’. SEC. 302. STATEMENT OF PURPOSE. and transitional countries to promote co- (d) REPORT.—Not later than 6 months after It is the purpose of this title to establish operatives and credit unions. the date of enactment of this Act, the Ad- an undergraduate grant program for stu- (2) Self-help institutions, including co- ministrator of the United States Agency for dents of limited financial means from the operatives and credit unions, provide en- International Development, in consultation United States to enable such students to hanced opportunities for people to partici- with the heads of other appropriate agencies, study abroad. Such foreign study is intended pate directly in democratic decision-making shall prepare and submit to Congress a re- to broaden the outlook and better prepare for their economic and social benefit port on the implementation of section 111 of October 3, 2000 CONGRESSIONAL RECORD — SENATE S9767 the Foreign Assistance Act of 1961 (22 U.S.C. cable to the operation of the fund may be de- (D) the authority of the Board to termi- 2151i), as amended by subsection (c). posited in the fund. nate the agreement if the provisions of para- SEC. 402. FUNDING OF CERTAIN ENVIRON- ‘‘(4) At the close of each fiscal year the Ad- graph (1) are violated; and MENTAL ASSISTANCE ACTIVITIES OF ministrator of the Agency shall transfer out (E) any other terms and conditions relat- USAID. of the fund to the miscellaneous receipts ac- ing to the materials that the Board considers (a) ALLOCATION OF FUNDS FOR CERTAIN EN- count of the Treasury of the United States appropriate. VIRONMENTAL ACTIVITIES.—Of the amounts such amounts as the Administrator deter- (c) CREDITING OF REIMBURSEMENTS TO authorized to be appropriated for the fiscal mines to be in excess of the needs of the BOARD APPROPRIATIONS ACCOUNT.—Any reim- year 2001 to carry out chapter 1 of part I of fund. bursement of the Board under subsection (b) the Foreign Assistance Act of 1961 (22 U.S.C. ‘‘(5) The fund may be charged with the cur- shall be deposited as an offsetting collection 2151 et seq.; relating to development assist- rent value of supplies and equipment re- to the currently applicable appropriation ac- ance), there is authorized to be available at turned to the working capital of the fund by count of the Board. least $60,200,000 to carry out activities of the a post, activity, or agency, and the proceeds (d) TERMINATION OF AUTHORITY.—The au- type carried out by the Global Environment shall he credited to current applicable appro- thority provided under this section shall Center of the United States Agency for priations.’’. cease to have effect on the date that is 5 International Development during fiscal years after the date of enactment of this year 2000. SEC. 405. INCREASE IN AUTHORIZED NUMBER OF EMPLOYEES AND REPRESENTA- Act. (b) ALLOCATION FOR WATER AND COASTAL TIVES OF THE UNITED STATES MIS- SEC. 408. PAUL D. COVERDELL FELLOWS PRO- RESOURCES.—Of the amounts made available SION TO THE UNITED NATIONS PRO- GRAM ACT OF 2000. under subsection (a), at least $2,500,000 shall VIDED LIVING QUARTERS IN NEW (a) SHORT TITLE.—This section may be be available for water and coastal resources YORK. cited as the ‘‘Paul D. Coverdell Fellows Pro- activities under the natural resources man- Section 9(2) of the United Nations Partici- gram Act of 2000’’. agement function specified in that sub- pation Act of 1945 (22 U.S.C. 287e–1(2)) is (b) FINDINGS.—Congress makes the fol- section. amended by striking ‘‘18’’ and inserting ‘‘30’’. lowing findings: SEC. 403. PROCESSING OF APPLICATIONS FOR SEC. 406. AVAILABILITY OF VOA AND RADIO (1) Paul D. Coverdell was elected to the TRANSPORTATION OF HUMANI- MARTI MULTILINGUAL COMPUTER George State Senate in 1970 and later became TARIAN ASSISTANCE ABROAD BY READABLE TEXT AND VOICE RE- Minority Leader of the Georgia State Sen- THE DEPARTMENT OF DEFENSE. CORDINGS. ate, a post he held for 15 years. (a) PRIORITY FOR DISASTER RELIEF ASSIST- Section 1(b) of Public Law 104–269 (110 Stat. (2) Paul D. Coverdell served with distinc- ANCE.—In processing applications for the 3300) is amended by striking ‘‘5 years’’ and tion as the 11th Director of the Peace Corps transportation of humanitarian assistance inserting ‘‘10 years’’. from 1989 to 1991, where he promoted a fel- abroad under section 402 of title 10, United lowship program that was composed of re- States Code, the Administrator of the United SEC. 407. AVAILABILITY OF CERTAIN MATERIALS OF THE VOICE OF AMERICA. turning Peace Corps volunteers who agreed States Agency for International Develop- to work in underserved American commu- ment shall afford a priority to applications (a) AUTHORITY.— nities while they pursued educational de- for the transportation of disaster relief as- (1) IN GENERAL.—Subject to the provisions grees. sistance. of this section, the Broadcasting Board of (3) Paul D. Coverdell served in the United (b) MODIFICATION OF APPLICATIONS.—The Governors (in this section referred to as the Administrator of the United States Agency ‘‘Board’’) is authorized to make available to States Senate from the State of Georgia for International Development shall take all the Institute for Media Development (in this from 1993 until his sudden death on July 18, possible actions to assist applicants for the section referred to as the ‘‘Institute’’), at the 2000. transportation of humanitarian assistance request of the Institute, previously broad- (4) Senator Paul D. Coverdell was beloved abroad under such section 402 in modifying cast audio and video materials produced by by his colleagues for his civility, bipartisan or completing applications submitted under the Africa Division of the Voice of America. efforts, and his dedication to public service. such section in order to meet applicable re- (2) DEPOSIT OF MATERIALS.—Upon the re- (c) DESIGNATION OF PAUL D. COVERDELL quirements under such section. The actions quest of the Institute and the approval of the FELLOWS PROGRAM.— shall include efforts to contact such appli- Board, materials made available under para- (1) IN GENERAL.—Effective on the date of cants for purposes of the modification or graph (1) may be deposited with the Univer- enactment of this Act, the program under completion of such applications. sity of California, Los Angeles, or such other section 18 of the Peace Corps Act (22 U.S.C. 2517) referred to before such date as the SEC. 404. WORKING CAPITAL FUND. appropriate institution of higher education ‘‘Peace Corps Fellows/USA Program’’ is re- Section 635 of the Foreign Assistance Act (as defined in section 101(a) of the Higher designated as the ‘‘Paul D. Coverdell Fellows of 1961 (22 U.S.C. 2395) is amended by adding Education Act of 1965 (20 U.S.C. 1001(a)) that Program’’. at the end the following new subsection: is approved by the Board for such purpose. ‘‘(m)(1) There is established a working cap- (3) SUPERSEDES EXISTING LAW.—Materials (2) REFERENCES.—Any reference before the ital fund (in this subsection referred to as made available under paragraph (1) may be date of enactment of this Act in any law, the ‘fund’) for the United States Agency for provided notwithstanding section 501 of the regulation, order, document, record, or other International Development (in this sub- United States Information and Educational paper of the United States to the Peace section referred to as the ‘Agency’) which Exchange Act of 1948 (22 U.S.C. 1461) and sec- Corps Fellows/USA Program shall, on and shall be available without fiscal year limita- tion 208 of the Foreign Relations Authoriza- after such date, be considered to refer to the tion for the expenses of personal and nonper- tion Act, Fiscal Years 1986 and 1987 (22 U.S.C. Paul D. Coverdell Fellows Program. sonal services, equipment, and supplies for— 1461–1a). ‘‘(A) International Cooperative Adminis- (b) LIMITATIONS.— NATIONAL TRANSPORTATION trative Support Services; and (1) AUTHORIZED PURPOSES.—Materials made SAFETY BOARD AMENDMENTS ‘‘(B) rebates from the use of United States available under this section shall be used ACT OF 2000 Government credit cards. only for academic and research purposes and ‘‘(2) The capital of the fund shall consist may not be used for public or commercial broadcast purposes. of— MCCAIN AMENDMENT NO. 4288 ‘‘(A) the fair and reasonable value of such (2) PRIOR AGREEMENT REQUIRED.—Before supplies, equipment, and other assets per- making available materials under subsection Mr. ROBERTS (for Mr. MCCAIN) pro- taining to the functions of the fund as the (a)(1), the Board shall enter into an agree- posed an amendment to the bill (S. Administrator determines, ment with the Institute providing for— 2412) to amend title 49, United States ‘‘(B) rebates from the use of United States (A) reimbursement of the Board for any ex- Code, to authorize appropriations for Government credit cards, and penses involved in making such materials the National Transportation Safety available; ‘‘(C) any appropriations made available for Board for fiscal years, 2000, 2001, 2002, the purpose of providing capital, (B) the establishment of guidelines by the minus related liabilities. Institute for the archiving and use of the and 2003, and for other purposes; as fol- ‘‘(3) The fund shall be reimbursed or cred- materials to ensure that copyrighted works lows: ited with advance payments for services, contained in those materials will not be used On page 3, line 1, insert ‘‘and technical’’ equipment, or supplies provided from the in a manner that would violate the copyright after ‘‘accident-related’’. fund from applicable appropriations and laws of the United States (including inter- On page 3, line 2, insert ‘‘theory and’’ after funds of the Agency, other Federal agencies national copyright conventions to which the ‘‘investigation’’. and other sources authorized by section 607 United States is a party); On page 3, line 5, insert ‘‘goods,’’ after ‘‘fa- at rates that will recover total expenses of (C) the indemnification of the United cilities,’’. operation, including accrual of annual leave States by the Institute in the event that any On page 5, between lines 2 and 3, insert the and depreciation. Receipts from the disposal use of the materials results in violation of following: of, or payments for the loss or damage to, the copyright laws of the United States (in- ‘‘(3) LIMITATION ON TOTAL AMOUNT OF OVER- property held in the fund, rebates, reim- cluding international copyright conventions TIME PAY.—The Board may not make over- bursements, refunds and other credits appli- to which the United States is a party); time payments under paragraph (1) for work S9768 CONGRESSIONAL RECORD — SENATE October 3, 2000 performed in any fiscal year in a total created and services performed under this As this entire process moves forward, amount that exceeds 1.5 percent of the section shall be fully credited to the account I request the Air Force carefully con- amount appropriated to carry out this chap- of the Federal Aviation Administration that sider this property and report its find- ter for that fiscal year.’’. funded the provision of the products or serv- ings to my Subcommittee on National On page 5, line 3, strike ‘‘(3)’’ and insert ices and shall remain available until ex- ‘‘(4)’’. pended. Parks and the rest of the Senate En- On page 5, line 9, strike ‘‘(4)’’ and insert (b) EFFECTIVE DATE.—The amendments ergy Committee. ‘‘(5)’’. made by subsection (a) take effect on Octo- I thank the Chair and yield the floor. On page 5, line 10, strike ‘‘2001,’’ and insert ber 1, 2000. f ‘‘2002,’’. f On page 5, line 16, strike ‘‘year.’’ and insert NATIONAL TRANSPORTATION ‘‘year, and the number of employees whose PRIVILEGE OF THE FLOOR SAFETY BOARD AMENDMENTS overtime pay under this subsection was lim- Mr. CLELAND. Mr. President, I ask ACT OF 2000 ited in that fiscal year as a result of the 15 unanimous consent that my military Mr. ROBERTS. Mr. President, I ask percent limit established by paragraph (2).’’. fellow, Tricia Heller, be granted the unanimous consent that the Senate On page 8, line 1, strike ‘‘1114(e)’’ and in- now proceed to the consideration of sert ‘‘1114(c)’’. privilege of the floor during the presen- On page 9, line 10, strike ‘‘notified’’ and in- tation of the global role of the United Calendar No. 762, S. 2412. sert ‘‘notifies’’. States. The PRESIDING OFFICER (Mr. On page 10, beginning in line 19, strike The PRESIDING OFFICER. Without THOMAS). The clerk will report the bill ‘‘members, and submit’’ and insert ‘‘mem- objection, it is so ordered. by title. bers which shall be approved by the Board f The legislative clerk read as follows: and submitted’’. A bill (S. 2412) to amend title 49, United On page 10, line 23, insert ‘‘together with’’ AUTHORIZING AIR FORCE States Code, to authorize appropriations for before ‘‘an’’. MEMORIAL FOUNDATION the National Transportation Safety Board On page 12, line 2, strike ‘‘Board’’ and in- Mr. THOMAS. Mr. President, I ask for fiscal years 2000, 2001, 2002, and 2003, and sert ‘‘Board, in consultation with the Inspec- for other purposes. tor General of the Department of Transpor- unanimous consent that the Energy Committee be discharged from further There being no objection, the Senate tation,’’. proceeded to consider the bill. On page 12, line 19, strike ‘‘management consideration of H.R. 4583, and that the Mr. MCCAIN. Mr. President, the full and’’ and insert ‘‘management, property Senate then proceed to its immediate management, and’’. consideration. Senate will now consider S. 2412, the On page 14, line 1, insert ‘‘and’’ after The PRESIDING OFFICER. Without National Transportation Safety Board ‘‘2001,’’. objection, it is so ordered. The clerk Amendments Act of 2000. The National Transportation Safety On page 14, beginning in line 2, strike ‘‘and will report the bill by title. $79,000,000 for fiscal year 2003,’’. The assistant legislative clerk read Board, NTSB, is one of our nation’s On page 14, after line 10, add the following: as follows: most critical governmental agencies, SEC. 14. CREDITING OF LAW ENFORCEMENT A bill (H.R. 4583) to extend the authoriza- charged with determining the probable FLIGHT TIME. cause of transportation accidents and In determining whether an individual tion for the Air Force Memorial Foundation to establish a memorial in the District of Co- promoting transportation safety. meets the aeronautical experience require- Among its many duties, the Board in- ments imposed under section 44703 of title 49, lumbia or its environs. United States Code, for an airman certificate There being no objection, the Senate vestigates accidents, conducts safety or rating, the Secretary of Transportation proceeded to consider the bill. studies, and evaluates the effectiveness shall take into account any time spent by Mr. THOMAS. Mr. President, I ask of other government agencies’ pro- that individual operating a public aircraft as unanimous consent that the bill be grams for preventing transportation defined in section 40102 of title 49, United read the third time and passed, the mo- accidents. Since its inception in 1967, States Code, if that aircraft is— tion to reconsider be laid upon the the NTSB has investigated more than (1) identifiable by category and class; and 110,000 aviation accidents, at least (2) used in law enforcement activities. table, and that any statements relating to the bill be printed in the RECORD. 10,000 other accidents in the surface SEC. 15. TECHNICAL CORRECTION. The PRESIDING OFFICER. Without modes and issued more than 11,000 safe- Section 46301(d)(2) of title 49, United States Code, is amended by striking ‘‘46302, 46303,’’ objection, it is so ordered. ty recommendations. and inserting ‘‘46301(b), 46302, 46303, 46318,’’. The bill (H.R. 4583) was read the third The Safety Board is currently experi- encing a high level of major accident SEC. 16. CONFIRMATION OF INTERIM FINAL time and passed. RULE ISSUANCE UNDER SECTION Mr. THOMAS. Mr. President, I thank investigations, many of which are ex- 45301. my colleagues for their support in pass- tremely complex. We must act to en- The publication, by the Department of ing H.R. 4583. This is legislation that sure the Board has the necessary per- Transportation, Federal Aviation Adminis- will extend the authorization for the sonnel and resources to complete these tration, in the Federal Register of June 6, Air Force Memorial Foundation until challenging investigations and carry 2000, (65 FR 36002) of an interim final rule December 2, 2005. I, along with my fel- out its statutory mission. concerning Fees for FAA Services for Cer- Given the very limited time remain- tain Flights (Docket No. FAA–00–7018) is low marines, fully support the effort to deemed to have been issued in accordance recognize with an appropriate monu- ing during this Congress, the Com- with the requirements of section 45301(b)(2) ment the selfless service and sacrifices merce Committee has worked with the of title 49, United States Code. of the many valiant veterans of the Air House Transportation and Infrastruc- SEC. 17. AERONAUTICAL CHARTING. Force and its predecessor organiza- ture, T&I, Committee in an effort to (a) IN GENERAL.—Section 44721 of title 49, tions. develop legislation that both Chambers United States Code, is amended— I also note the Air Force Memorial could accept without modification. (1) by striking paragraphs (3) and (4) of Foundation has already begun the Both of our Committees want to ensure subsection (c); and process of considering and selecting the NTSB’s authorizing legislation can (2) by adding at the end of subsection (g)(1) sites. In pursuing that effort, I encour- be enacted as soon as possible. the following: age the foundation to identify a loca- I want to commend Senator HOL- ‘‘(D) CONTINUATION OF PRICES.—The price of any product created under subsection (d) tion that will suitably express an ap- LINGS, the Ranking member of the Sen- may correspond to the price of a comparable propriate theme and do so in a manner ate Commerce Committee and House product produced by a department of the that does not infringe upon or detract T&I Chairman, BUD SHUSTER, and United States government as that price was from other prominent memorials. Ranking Member, JIM OBERSTAR for in effect on September 30, 2000, and may re- In this regard, I note the property their assistance in developing the main in effect until modified by regulation known as the Arlington Naval Annex package I bring before the Senate under section 9701 of title 31, United States overlooking the Pentagon, the south- today. The accompanying Manager’s Code.’’; and east portion of Arlington Cemetery, Amendment is the product of our joint (3) by adding at the end of subsection (g) the following: will soon be available. This location of- discussions and resolves the differences (5) CREDITING AMOUNTS RECEIVED.—Not- fers a suitable prominent setting for in the House-passed and Commerce withstanding any other provision of law, the memorial, and I hope it will be Committee-passed versions of the amounts received for the sale of products fully considered by the Air Force. NTSB authorizing legislation. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9769 S. 2412 authorizes funding for the Floor and on to the House for its swift tration, in the Federal Register of June 6, Board through fiscal year 2003. The bill action, and then to the President’s 2000, (65 FR 36002) of an interim final rule also includes a number of provisions re- desk for signature. concerning Fees for FAA Services for Cer- quested in the Board’s reauthorization tain Flights (Docket No. FAA–00–7018) is AMENDMENT NO. 4288 deemed to have been issued in accordance submission. These statutory changes Mr. ROBERTS. Mr. President, Sen- with the requirements of section 45301(b)(2) include: (1) clarification of NTSB’s ju- ator MCCAIN has an amendment at the of title 49, United States Code. risdiction over accidents on the terri- desk and I ask for its consideration. SEC. 17. AERONAUTICAL CHARTING. torial seas to the twelve-mile limit and The PRESIDING OFFICER. The (a) IN GENERAL.—Section 44721 of title 49, its investigative authority over acci- clerk will report. United States Code, is amended— dents that may have been the subject The Senator from Kansas [Mr. ROBERTS], (1) by striking paragraphs (3) and (4) of of intentional acts of destruction; (2) for Mr. MCCAIN, proposes an amendment subsection (c); and permission to prescribe overtime pay numbered 4288. (2) by adding at the end of subsection (g)(1) rates for accident investigators; (3) au- the following: The amendment is as follows: ‘‘(D) CONTINUATION OF PRICES.—The price of thority to negotiate technical service (Purpose: To make minor and technical cor- any product created under subsection (d) agreements with foreign safety agen- rections in the bill as reported, and for may correspond to the price of a comparable cies or foreign governments; (4) author- other purposes) product produced by a department of the ity to collect reasonable fees for the re- On page 3, line 1, insert ‘‘and technical’’ United States government as that price was production and distribution of Board after ‘‘accident-related’’. in effect on September 30, 2000, and may re- products; and (5) permission to with- On page 3, line 2, insert ‘‘theory and’’ after main in effect until modified by regulation hold voice and video recorder informa- ‘‘investigation’’. under section 9701 of title 31, United States tion from public disclosure. On page 3, line 5, insert ‘‘goods,’’ after ‘‘fa- Code.’’; and In addition to the provisions re- cilities,’’. (3) by adding at the end of subsection (g) On page 5, between lines 2 and 3, insert the the following: quested by the Board, the legislation following: (5) CREDITING AMOUNTS RECEIVED.—Not- also includes a number of other provi- ‘‘(3) LIMITATION ON TOTAL AMOUNT OF OVER- withstanding any other provision of law, sions intended to improve fiscal ac- TIME PAY.—The Board may not make over- amounts received for the sale of products countability at the NTSB. For exam- time payments under paragraph (1) for work created and services performed under this ple, the legislation would statutorily performed in any fiscal year in a total section shall be fully credited to the account establish a position of Chief Financial amount that exceeds 1.5 percent of the of the Federal Aviation Administration that Officer, CFO, at the Board. The CFO amount appropriated to carry out this chap- funded the provision of the products or serv- ter for that fiscal year.’’. would report directly to the Chairman ices and shall remain available until ex- On page 5, line 3, strike ‘‘(3)’’ and insert pended. of the Board on financial management ‘‘(4)’’. (b) EFFECTIVE DATE.—The amendments matters and provide guidance on the On page 5, line 9, strike ‘‘(4)’’ and insert made by subsection (a) take effect on Octo- implementation of asset management ‘‘(5)’’. ber 1, 2000. On page 5, line 10, strike ‘‘2001,’’ and insert systems. It also directs the Board to Mr. ROBERTS. Mr. President, I ask develop and implement comprehensive ‘‘2002,’’. On page 5, line 16, strike ‘‘year.’’ and insert unanimous consent that the amend- internal audit controls for its financial ‘‘year, and the number of employees whose ment be agreed to. programs to address shortcomings overtime pay under this subsection was lim- The PRESIDING OFFICER. Without identified recently by the Department ited in that fiscal year as a result of the 15 objection, it is so ordered. of Transportation Inspector General. percent limit established by paragraph (2).’’. The amendment (No. 4288) was agreed Further, the legislation includes a On page 8, line 1, strike ‘‘1114(e)’’ and in- to. provision intended to curb what I and sert ‘‘1114(c)’’. Mr. ROBERTS. Mr. President, I ask On page 9, line 10, strike ‘‘notified’’ and in- others view as excessive member travel unanimous consent the bill, as amend- expenditures. According to NTSB trav- sert ‘‘notifies’’. On page 10, beginning in line 19, strike ed, be read the third time and passed, el documents, only 15 percent of Board ‘‘members, and submit’’ and insert ‘‘mem- the motion to reconsider be laid upon Member travel has been accident-re- bers which shall be approved by the Board the table, and that any statements re- lated in the past five years. Non-acci- and submitted’’. lating to the bill be printed in the dent domestic and foreign travel ac- On page 10, line 23, insert ‘‘together with’’ RECORD. counts for 85 percent of the total travel before ‘‘an’’. The PRESIDING OFFICER. Without On page 12, line 2, strike ‘‘Board’’ and in- expenditures—with 51 percent for do- objection, it is so ordered. mestic travel and 34 percent for foreign sert ‘‘Board, in consultation with the Inspec- tor General of the Department of Transpor- The bill (S. 2412), as amended, was travel. While I recognize a legitimate tation,’’. read the third time and passed. need may exist to participate in impor- On page 12, line 19, strike ‘‘management (The bill will be printed in a future tant seminars and to gain greater pro- and’’ and insert ‘‘management, property edition of the RECORD.) fessional expertise that may neces- management, and’’. f sitate travel, this is simply excessive. On page 14, line 1, insert ‘‘and’’ after Therefore, the bill directs the Chair- ‘‘2001,’’. AMENDING THE VIOLENT CRIME man of the NTSB to establish annual On page 14, beginning in line 2, strike ‘‘and CONTROL AND LAW ENFORCE- $79,000,000 for fiscal year 2003,’’. MENT ACT OF 1994 travel budgets, to be approved by the On page 14, after line 10, add the following: Board, to govern Board Member non- SEC. 14. CREDITING OF LAW ENFORCEMENT Mr. ROBERTS. Mr. President, I ask accident travel. FLIGHT TIME. unanimous consent that the Com- Finally, the bill authorizes the De- In determining whether an individual mittee on the Judiciary be discharged partment of Transportation Inspector meets the aeronautical experience require- from further consideration of H.R. 1800 General to review the business, finan- ments imposed under section 44703 of title 49, and the Senate then proceed to its im- cial, and property management of the United States Code, for an airman certificate mediate consideration. NTSB. Currently, the Board has no or rating, the Secretary of Transportation shall take into account any time spent by The PRESIDING OFFICER (Mr. AL- standing Inspector General oversight. that individual operating a public aircraft as LARD). Without objection, it is so or- The bill ensures that necessary fiscal defined in section 40102 of title 49, United dered. accountability oversight is provided, States Code, if that aircraft is— The clerk will report. while prohibiting the Inspector General (1) identifiable by category and class; and The legislative clerk read as follows: from becoming involved in NTSB in- (2) used in law enforcement activities. A bill (H.R. 1800) to amend the Violent vestigations and investigation proce- SEC. 15. TECHNICAL CORRECTION. Crime Control and Law Enforcement Act of dures. Section 46301(d)(2) of title 49, United States 1994 to ensure that certain information re- The NTSB’s authorization expired Code, is amended by striking ‘‘46302, 46303,’’ garding prisoners is reported to the Attorney September 30, 1999. The NTSB faces and inserting ‘‘46301(b), 46302, 46303, 46318,’’. General. budget difficulties as it seeks to cover SEC. 16. CONFIRMATION OF INTERIM FINAL There being no objection, the Senate RULE ISSUANCE UNDER SECTION the costs of major accident investiga- 45301. proceeded to consider the bill. tions. Therefore, I hope we can move The publication, by the Department of Mr. ROBERTS. Mr. President, I ask this legislation expeditiously from the Transportation, Federal Aviation Adminis- unanimous consent that the bill be S9770 CONGRESSIONAL RECORD — SENATE October 3, 2000 considered read the third time and AUTHORIZING THE PRINTING OF now proceed to the immediate consid- passed, the motion to reconsider be ‘‘WASHINGTON’S FAREWELL AD- eration of Calendar No. 764, S. 2440. laid upon the table, and any state- DRESS’’—S. RES. 361 The PRESIDING OFFICER. The ments relating to the bill be printed in AUTHORIZING THE PRINTING OF clerk will state the bill by title. The legislative clerk read as follows: the RECORD. REVISED SENATE RULES AND MANUAL—S. RES. 360 A bill (S. 2440) to amend title 49, United The PRESIDING OFFICER. Without States Code, to improve airport security. objection, it is so ordered. There being no objection, the Senate The bill (H.R. 1800) was considered Mr. ROBERTS. Mr. President, I ask proceeded to consider the bill, which unanimous consent that the Rules read the third time and passed. was reported by the Committee on Committee be discharged from the fur- Commerce, with an amendment in the f ther consideration of S. Res. 360 and S. nature of a substitute. Res. 361, and that the Senate then pro- (Strike out all after the enacting ceed en bloc to their immediate consid- AUTHORIZING PRINTING OF PUB- clause and insert the part printed in eration. italic.) LICATION ‘‘THE UNITED STATES The PRESIDING OFFICER. Without CAPITOL’’ SECTION 1. SHORT TITLE. objection, it is so ordered. This Act may be cited as the ‘‘Airport Security The clerk will report the resolutions Mr. ROBERTS. Mr. President, I ask Improvement Act of 2000’’. by title. unanimous consent that the Senate SEC. 2. CRIMINAL HISTORY RECORD CHECKS. The legislative clerk read as follows: (a) EXPANSION OF FAA ELECTRONIC PILOT proceed to the immediate consider- A resolution (S. Res. 360) to authorize the PROGRAM.—Within 12 months after the date of ation of S. Con. Res. 141 submitted by printing of a document entitled ‘‘Washing- enactment of this Act, the Administrator of the Senator MCCONNELL. ton’s Farewell Address.’’ Federal Aviation Administration shall, in con- A resolution (S. Res. 361) to authorize the sultation with the Office of Personnel Manage- The PRESIDING OFFICER. The printing of a revised edition of the Senate ment and the Federal Bureau of Investigation, clerk will report the concurrent resolu- Rules and Manual. develop the pilot program for individual crimi- tion by title. There being no objection, the Senate nal history record checks, known as the elec- The legislative clerk read as follows: proceeded to consider the resolutions tronic fingerprint transmission pilot project, into en bloc. an aviation industry-wide program. A concurrent resolution (S. Con. Res. 141) Mr. ROBERTS. Mr. President, I ask (b) APPLICATION OF EXPANDED PROGRAM.— Beginning 1 year after the date of enactment of to authorize the printing of copies of the unanimous consent that the resolu- publication entitled ‘‘The United States Cap- this Act, the Administrator shall utilize the pro- tions be agreed to and the motions to gram described in subsection (a) to carry out itol’’ as a Senate document. reconsider be laid upon the table en section 44936 of title 49, United States Code, for There being no objection, the Senate bloc. individuals described in subsection (a)(1)(A), proceeded to consider the concurrent The PRESIDING OFFICER. Without (a)(1)(B)(i), or (a)(1)(B)(ii) of that section. If the Administrator determines that the program is resolution. objection, it is so ordered. The resolutions (S. Res. 360 and S. not sufficiently operational 1 year after the date Mr. ROBERTS. Mr. President, I ask Res. 361) were agreed to, as follows: of enactment of this Act to permit its utilization unanimous consent the resolution be in accordance with subsection (a), the Adminis- S. RES. 360 trator shall notify the Senate Committee on agreed to and the motion to reconsider Resolved, Commerce, Science, and Transportation and the be laid upon the table. SECTION 1. AUTHORIZATION. House of Representatives Committee on Trans- The PRESIDING OFFICER. Without The booklet entitled ‘‘Washington’s Fare- portation and Infrastructure of the determina- well Address’’, prepared by the Senate His- tion. objection, it is so ordered. torical Office under the direction of the Sec- (c) CHANGES IN EXISTING REQUIREMENTS.— The concurrent resolution (S. Con. retary of the Senate, shall be printed as a Section 44936(a)(1) of title 49, United States Res. 141) was agreed to, as follows: Senate document. Code is amended— SEC. 2. FORMAT. (1) by striking ‘‘conducted, as the Adminis- S. CON. RES. 141 The Senate document described in section trator decides is necessary to ensure air trans- 1 shall include illustrations and shall be in portation security, of’’ in subparagraph (A) and Resolved by the Senate (the House of Rep- the style, form, manner, and printing as di- inserting ‘‘conducted of’’; and resentatives concurring), That (a) a revised rected by the Joint Committee on Printing (2) by striking ‘‘subparagraph (C))’’ in sub- edition of the publication entitled ‘‘The after consultation with the Secretary of the paragraph (B) and inserting ‘‘subparagraph United States Capitol’’ (referred to as ‘‘the Senate. (D))’’; pamphlet’’) shall be reprinted as a Senate SEC. 3. COPIES. (3) by redesignating subparagraphs (C) and document. In addition to the usual number of copies, (D) as subparagraphs (D) and (E); there shall be printed 600 additional copies of (4) by inserting after subparagraph (B) the (b) There shall be printed a total of following: 2,850,000 copies of the pamphlet in English the document specified in section 1 for the use of the Secretary of the Senate. ‘‘(C) A criminal history record check shall be and seven other languages at a cost not to conducted for every individual who applies for exceed $165,900 for distribution as follows: S. RES. 361 a position described in subparagraph (A) or in (1)(A) 206,000 copies of the pamphlet in the subparagraph (B)(i) or (ii) after the date of en- Resolved, That (a) the Committee on Rules English language for the use of the Senate actment of the Airport Security Improvement and Administration shall prepare a revised with 2,000 copies distributed to each Member; Act of 2000. For the 12-month period beginning edition of the Senate Rules and Manual for (B) 886,000 copies of the pamphlet in the on the date of enactment of that Act, an indi- the use of the 106th Congress. English language for the use of the House of vidual described in the preceding sentence may (b) The manual shall be printed as a Senate Representatives with 2,000 copies distributed be employed in such a position before the check document. to each Member; and (c) In addition to the usual number of doc- is completed if the individual is subject to super- (C) 1,758,000 copies of the pamphlet for dis- uments, 1,400 additional copies of the manual vision except in a case described in clause (i), tribution to the Capitol Guide Service in the shall be bound of which— (ii), (iii), (iv), or (v) of subparagraph (D). After following languages: (1) 500 paperbound copies shall be for the that 12-month period, such an individual may (i) 908,000 copies in English; use of the Senate; and not be so employed until the check is com- (ii) 100,000 copies in each of the following (2) 900 copies shall be bound (500 pleted.’’; seven languages: Spanish, German, French, paperbound; 200 nontabbed black skiver; 200 (5) by striking ‘‘subparagraph (C),’’ in sub- Russian, Japanese, Italian, and Korean; and tabbed black skiver) and delivered as may be paragraph (E), as redesignated, and inserting (iii) 150,000 copies in Chinese. directed by the Committee on Rules and Ad- ‘‘subparagraph (D),’’; and (2) If the total printing and production ministration. (6) by striking ‘‘as a screener’’ in subpara- costs of copies in paragraph (1) exceed graph (E), as redesignated, and inserting ‘‘in $165,900, such number of copies of the pam- f the position for which the individual applied’’. phlet as does not exceed total printing and AIRPORT SECURITY (d) LIST OF OFFENSES BARRING EMPLOY- production costs of $165,900, shall be printed IMPROVEMENT ACT OF 2000 MENT.—Section 44936(b)(1)(B) of title 49, United with distribution to be allocated in the same States Code, is amended— proportion as in paragraph (1) as it relates to Mr. ROBERTS. Mr. President, I ask (1) by inserting ‘‘(or found not guilty by rea- numbers of copies in the English language. unanimous consent that the Senate son of insanity)’’ after ‘‘convicted’’; October 3, 2000 CONGRESSIONAL RECORD — SENATE S9771 (2) by inserting ‘‘or felony unarmed’’ after (2) by inserting after subsection (d) thereof the where bulk explosive detection equipment is ‘‘armed’’ in clause (xi); following: being used. (3) by striking ‘‘or’’ after the semicolon in ‘‘(e) IMPROVEMENT OF SECURED-AREA ACCESS SEC. 7. TECHNICAL AMENDMENT TO TITLE 49. clause (xii); CONTROL.— Section 106(p)(2) is amended by striking ‘‘15’’ (4) by redesignating clause (xiii) as clause (xv) ‘‘(1) ENFORCEMENT.— and inserting ‘‘18’’. and inserting after clause (xii) the following: ‘‘(A) ADMINISTRATOR TO PUBLISH SANCTIONS.— Mr. MCCAIN. Mr. President, I rise to ‘‘(xiii) felony involving a threat; The Administrator shall publish in the Federal ‘‘(xiv) a felony involving— Register a list of sanctions for use as guidelines express my strong support for the Air- ‘‘(I) willful destruction of property; in the discipline of employees for infractions of port Security Improvement Act of 2000, ‘‘(II) importation or manufacture of a con- airport access control requirements. The guide- S. 2440. This bill was introduced in trolled substance; lines shall incorporate a progressive disciplinary April by Senator HUTCHISON and co- ‘‘(III) burglary; approach that relates proposed sanctions to the sponsored by several other Senators, ‘‘(IV) theft; severity or recurring nature of the infraction, including myself. In June, the Com- ‘‘(V) dishonesty, fraud, or misrepresentation; and shall include, but are not limited to, meas- ‘‘(VI) possession or distribution of stolen prop- merce Committee favorably reported S. ures such as remedial training, suspension from 2440, which was crafted to address sev- erty; security-related duties, suspension from all du- ‘‘(VII) aggravated assault; or ties without pay, and termination of employ- eral serious concerns associated with ‘‘(VIII) bribery; or’’; and ment. aviation security in this country. (5) by striking ‘‘clauses (i)–(xii) of this para- ‘‘(B) USE OF SANCTIONS.—Each airport, air The bill was introduced in the wake graph.’’ in clause (xv), as redesignated, and in- carrier, and security screening company shall of an Aviation Subcommittee hearing serting ‘‘clauses (i) through (xiv) of this sub- include the list of sanctions published by the paragraph.’’. chaired by Senator HUTCHISON on the Administrator in its security program. The secu- current state of aviation security. SEC. 3. IMPROVED TRAINING. rity program shall include a process for taking (a) COMPLETION OF RULEMAKING ON CERTIFI- Prior to the hearing, the Federal Avia- prompt disciplinary action against an employee tion Administration (FAA) and the CATION OF AVIATION SCREENING COMPANIES.— who commits an infraction of airport access con- (1) INTERIM RULE.—No later than 30 days trol requirements. General Accounting Office (GAO) con- after the date of enactment of this Act, the Ad- ‘‘(2) IMPROVEMENTS.—The Administrator ducted a closed briefing with respect to ministrator of the Federal Aviation Administra- shall— some of the more sensitive information tion shall issue as an interim final rule the pro- ‘‘(A) work with airport operators and air car- in this area. Given concerns raised by posed rule on Certification of Screening Compa- riers to implement and strengthen existing con- the GAO and the Department of Trans- nies published in the Federal Register for Janu- trols to eliminate access control weaknesses by portation’s Inspector General, a con- ary 5, 2000. For purposes of the interim final September 30, 2000; rule, the analyses and documentation prepared sensus developed that legislation was ‘‘(B) require airport operators and air carriers needed to address some of the more for the proposed rules are deemed to meet the re- to develop and implement comprehensive and re- quirements of chapter 5 of title 5, United States curring training programs that teach employees glaring deficiencies in the current sys- Code, applicable to rulemaking and any other their role in airport security, the importance of tem. procedural requirement imposed by law on rule- their participation, how their performance will As reported by the committee, S. 2440 making. be evaluated, and what action will be taken if would do the following: require crimi- (2) FINAL RULE.—No later than May 31, 2001, they fail to perform; nal history records checks for all bag- the Administrator shall issue a final rule on the ‘‘(C) require airport operators and air gage and security checkpoint screen- Certification of Screening Companies, after tak- carriers— ing into account any comments received on the ers; expand the list of criminal convic- ‘‘(i) to develop and implement programs that tions that disqualify an individual proposed rule issued as an interim final rule foster and reward compliance with access con- under paragraph (1). trol requirements, and discourage and penalize from being employed as a security (b) MINIMUM INSTRUCTIONAL STANDARDS FOR noncompliance in accordance with guidelines screener; increase the amount of class- SCREENERS.—Section 44935 of title 49, United issued by the Administrator to measure em- room and on-the-job training required States Code, is amended by adding at the end ployee compliance; and of airline security screeners; require thereof the following: (ii) to enforce individual compliance require- the FAA to work with air carriers and ‘‘(e) TRAINING STANDARDS FOR SCREENERS.— ments under Administration oversight; airport operators to strengthen proce- ‘‘(1) IN GENERAL.—The Administrator shall ‘‘(D) assess and test for compliance with ac- prescribe minimum standards for training secu- dures to prevent unauthorized access cess control requirements, report findings, and to aircraft; hold security personnel in- rity screeners that include at least 40 hours of assess penalties or take other appropriate en- classroom instruction before an individual is forcement actions when noncompliance is dividually responsible for security qualified to provide security screening services found; lapses through progressive disciplinary under section 44901 of this title. ‘‘(E) improve and better administer the Ad- measures; require the FAA to improve ‘‘(2) CLASSROOM EQUIVALENCY.—The success- ministration security database to ensure its effi- security at its own air traffic control ful completion of a program certified by the Ad- ciency, reliability, and usefulness for identifica- facilities; and increase random screen- ministrator as a program that will train individ- tion of systemic problems and allocation of re- uals to a level of proficiency meets the classroom ing of checked bags for explosives. sources; I believe these are all necessary steps instruction requirement of paragraph (1). ‘‘(F) improve the execution of the Administra- ‘‘(3) ON-THE-JOB TRAINING.—In addition to the for the improvement of aviation secu- tion’s quality control program by September 30, requirements of paragraph (1), before an indi- 2000; and rity. No system can ever be perfect, but vidual may exercise independent judgment as a ‘‘(G) require airport operators and air carriers we must continue to strive for an air security screener under section 44901 of this title to strengthen access control points in secured transportation system that is as secure the individual shall— areas (including air traffic control operations as reasonably possible. On the whole, ‘‘(A) complete 40 hours of on-the-job training; areas) to ensure the security of passengers and and security at U.S. airports appears to be aircraft by September 30, 2000.’’. ‘‘(B) successfully complete an on-the-job good at this time. But, as I have said training examination prescribed by the Adminis- SEC. 5. PHYSICAL SECURITY FOR ATC FACILITIES. before, we cannot relax our efforts, es- trator.’’. In order to ensure physical security at Federal pecially given the significant growth in (c) COMPUTER-BASED TRAINING FACILITIES.— Aviation Administration facilities that house air air travel. The threats to our nation Section 4935 of title 49, United States Code, as traffic control systems, the Administrator shall— remain real, and the airline industry amended by subsection (b) is further amended unfortunately remains an attractive by adding at the end thereof the following: (1) correct identified physical security weak- ‘‘(f) ACCESSIBILITY OF COMPUTER-BASED nesses at inspected facilities so these air traffic target. TRAINING FACILITIES.—The Administrator shall control facilities can be granted physical secu- In closing, I commend Senator work with air carriers and airports to ensure rity accreditation as expeditiously as possible, HUTCHISON for her hard work on this that computer-based training facilities intended but no later than April 30, 2001; and bill. She has done a fine job of taking for use by security screeners at an airport regu- (2) ensure that annual or triennial follow-up the lead on this legislation. larly serving an air carrier holding a certificate inspections are conducted, deficiencies are Mr. HOLLINGS. Mr. President, thank issued by the Secretary be conveniently located promptly corrected, and accreditation is kept you for the opportunity to speak today current for all air traffic control facilities. for that airport and easily accessible.’’. about airport security, and in par- SEC. 6. EXPLOSIVES DETECTION EQUIPMENT. SEC. 4. IMPROVING SECURED-AREA ACCESS CON- ticular, S. 2440, the Airport Security TROL. The Administrator of the Federal Aviation Section 44903 of title 49, United States Code, is Administration shall immediately begin to in- Improvement Act of 2000. amended— crease gradually the random selection factor em- Our aviation security system in the (1) by redesignating subsections (e) and (f) as bedded in the Administration’s Commuter-As- United States and abroad is of extreme subsections (f) and (g); and sisted Passenger Prescreening System at airports importance in protecting the traveling S9772 CONGRESSIONAL RECORD — SENATE October 3, 2000 public. Airport security is our first line their job and they also need to be pro- who, at no charge, have helped millions of of defense against terrorist attacks or vided with the proper training to carry veterans and their families secure the edu- other dangerous acts. We all know that out their functions. Many of the areas cation, disability compensation, and health our airport security personnel are un- covered by this bill consist of actions care benefits they are rightfully entitled to receive as a result of the military service derpaid and overworked. now being undertaken by the FAA. performed by those veterans; and Congress sets minimum security However, despite these actions, and Whereas veterans service organizations standards for the airports and airlines consistent with the needs of the trav- have been deeply involved in countless local to meet, but implementing the stand- eling public, a number of modifications community service projects and have been ards is not a government function— will be debated with our House col- constant reminders of the American ideals of that part is left to the airlines, air- leagues but I am confident we can put duty, honor, and national service: Now, ports and security personnel. We need together a final bill and send it to the therefore, be it to ensure, then, that the industry and President for his signature. Resolved by the Senate (the House of Rep- security screeners are better prepared resentatives concurring), That the Congress re- Mr. ROBERTS. Mr. President, I ask quests that— and that higher training standards are unanimous consent that the Com- (1) the United States Postal Service issue a implemented. Security workers are mittee substitute be agreed to, the bill series of commemorative postage stamps characterized by a high rate of turn- be read the third time and passed, the honoring the legacy and the continuing con- over. According to GAO’s testimony in motion to reconsider be laid upon the tributions of veterans service organizations our April 6 hearing this year on avia- table, and that any statements relating to the United States; and tion security, from May 1998 through to the bill be printed at this point in (2) the Citizens’ Stamp Advisory Com- mittee recommend to the Postmaster Gen- April 1999, turnover averaged 126 per- the RECORD. cent among screeners at 19 large air- eral that such a series of commemorative The PRESIDING OFFICER. Without postage stamps be issued. ports, and the average wage for screen- objection, it is so ordered. ers in the United States averages $5.75 The committee amendment in the f per hour with minimal benefits. We nature of a substitute was agreed to. U.S.S. ‘‘WISCONSIN’’ COMMEMORA- can’t expect security personnel who are The bill (S. 2440), as amended, was TIVE POSTAGE STAMP receiving minimum-wage or near-min- read the third time and passed. Mr. ROBERTS. Mr. President, I ask imum wage to realize just how impor- f tant their jobs are to the overall secu- unanimous consent that the Govern- rity of the airport and to have a com- REQUESTING THAT THE U.S. POST- mental Affairs Committee be dis- mitment to their jobs. On the other AL SERVICE ISSUE A COMMEMO- charged from further consideration of hand, security personnel also need to RATIVE STAMP HONORING NA- S. Con. Res. 60, and that the Senate be held individually responsible for se- TIONAL VETERANS SERVICE OR- then proceed to its immediate consid- curity lapses. Peoples’ lives are at GANIZATIONS eration. stake when there are security lapses. Mr. ROBERTS. Mr. President, I ask The PRESIDING OFFICER. Without Employees who fail to follow proce- unanimous consent that the Govern- objection, it is so ordered. dures should be suspended or termi- mental Affairs Committee be dis- The clerk will report the concurrent nated. charged from further consideration of resolution by title. S. 2440 directs the FAA Adminis- S. Con. Res. 70, and the Senate then The legislative clerk read as follows: trator to prescribe minimum standards proceed to its immediate consider- A concurrent resolution (S. Con. Res. 60) for training security screeners that in- ation. expressing the sense of Congress that a com- cludes at least 40 hours of classroom The PRESIDING OFFICER. Without memorative postage stamp should be issued in honor of the U.S.S. Wisconsin and all those instruction and at least 40 hours of objection, it is so ordered. who served aboard her. practical training before an individual The clerk will state the resolution by is qualified to provide security screen- title. There being no objection, the Senate proceeded to consider the concurrent ing services at an airport. The FAA is A concurrent resolution (S. Con. Res. 70) committed to funding better, more ef- requesting that the United States Postal resolution. fective equipment, but it was not going Service issue a commemorative postage Mr. ROBERTS. Mr. President, I ask to finalize the regulation to improve stamp honoring the national veterans serv- unanimous consent that the concur- training requirements for screeners ice organizations of the United States. rent resolution be agreed to, the pre- and certification for screening compa- There being no objection, the Senate amble be agreed to, the motion to re- nies until May 2001. With this legisla- proceeded to consider the concurrent consider be laid upon the table, and tion, improved training requirements resolution. that any statements relating to the will be implemented by September 30 Mr. ROBERTS. Mr. President, I ask resolution be printed in the RECORD. of this year. S. 2440 also, among other unanimous consent that the concur- The PRESIDING OFFICER. Without things, requires airport operators and rent resolution be agreed to, the pre- objection, it is so ordered. air carriers to develop comprehensive amble be agreed to, the motion to re- The concurrent resolution (S. Con. and recurring training programs that consider be laid upon the table, and Res. 60) was agreed to. teach employees their role in airport that any statements relating to the The preamble was agreed to. security and how performance will be concurrent resolution be printed at The concurrent resolution, with its evaluated and treated. this point in the RECORD. preamble, reads as follows: Another major problem at airports is The PRESIDING OFFICER. Without S. CON. RES. 60 secured-area access control weak- objection, it is so ordered. Whereas the Iowa Class Battleship, the nesses. People are getting into secured The concurrent resolution (S. Con. U.S.S. Wisconsin (BB-64), is an honored war- areas by following airport employees Res. 70) was agreed to. ship in United States naval history, with 6 through security doors. This can be The preamble was agreed to. battle stars and 5 citations and medals dur- ing her 55 years of service; solved by employees simply closing the The concurrent resolution, with its preamble, reads as follows: Whereas the U.S.S. Wisconsin was launched door behind them after they enter a se- on December 7, 1943, by the Philadelphia cured area. S. 2440 requires airport op- S. CON. RES. 70 Naval Shipyard; sponsored by Mrs. Walter S. erators and air carriers to develop pro- Whereas United States service personnel Goodland, wife of then-Governor Goodland of grams that foster and reward compli- have fought, bled, and died in every war, con- Wisconsin; and commissioned at Philadel- ance with access control requirements, flict, police action, and military interven- phia, Pennsylvania, on April 16, 1944, with discourage and penalize noncompli- tion in which the United States has engaged Captain Earl E. Stone in command; ance, and enforce individual compli- during this century and throughout the Na- Whereas her first action for Admiral Wil- tion’s history; liam ‘‘Bull’’ Halsey’s Third Fleet was a ance requirements under FAA over- Whereas throughout history, veterans strike by her task force against the Japanese sight. service organizations have ably represented facilities in Manila, thereby supporting the I believe this bill is a step in the the interests of veterans in Congress and amphibious assault on the Island of Mindoro, right direction. Security personnel State legislatures across the Nation, and es- which was a vital maneuver in the defeat of need to be aware of the importance of tablished networks of trained service officers the Japanese forces in the Philippines; October 3, 2000 CONGRESSIONAL RECORD — SENATE S9773 Whereas the U.S.S. Wisconsin joined the bloc: Calendar No. 828, H.R. 3084, and cant locations or events in the life of Abra- Fifth Fleet to provide strategic cover for the Calendar No. 711, H.R. 2773. ham Lincoln. Cooperative efforts to promote assault on Iwo Jima by striking the Tokyo The PRESIDING OFFICER. The and interpret the life of Abraham Lincoln area; clerk will report the bills by title. may include the use of cooperative agree- Whereas the U.S.S. Wisconsin supplied cru- The assistant legislative clerk read ments, cross references, cross promotion, cial firepower for the invasion of Okinawa; and shared exhibits. Whereas the U.S.S. Wisconsin served as a as follows: (3) COMPETITIVE BIDDING GUIDELINES.—As a flagship for the Seventh Fleet during the Ko- A bill (H.R. 3084) to authorize the Sec- condition of the receipt of a grant under sub- rean conflict; retary of the Interior to contribute funds for section (a), the Secretary of the Interior shall Whereas the U.S.S. Wisconsin provided con- the establishment of an interpretative center require that the grant recipient comply with sec- sistent naval gunfire support during the Ko- on the life and contributions of President tions 303, 303A, and 303B of the Federal Prop- rean conflict to the First Marine Division, Abraham Lincoln. erty and Administrative Services Act of 1949 (41 the First Republic of Korea Corps, and A bill (H.R. 2773) to amend the Wild and U.S.C. 253–253b) as implemented by the Federal United Nations forces; Scenic Rivers Act to designate the Wekiva Acquisition Regulation issued pursuant to sec- Whereas the U.S.S. Wisconsin received 5 River and its tributaries of Wekiva Springs tion 25 of the Office of Federal Procurement battle stars for World War II and one for the Run, Rock Springs Run, and Black Water Policy Act (41 U.S.C. 421) in planning, design- Korean conflict; Creek in the State of Florida as components ing, and constructing the interpretive center. Whereas the U.S.S. Wisconsin returned to of the national wild and scenic rivers sys- (d) PROHIBITION ON CONTRIBUTION OF OPER- combat on January 17, 1991; tem. ATING FUNDS.—Grant amounts may not be Whereas the U.S.S. Wisconsin served as There being no objection, the Senate used for the maintenance or operation of the Tomahawk strike warfare commander for proceeded to consider the bills. interpretive center. the Persian Gulf, and directed the sequence Mr. ROBERTS. Mr. President, I ask (e) NON-FEDERAL OPERATION.—The Sec- retary of Interior shall have no involvement of Tomahawk launches that initiated Oper- unanimous consent that any com- ation Desert Storm; and in the actual operation of the interpretive Whereas the U.S.S. Wisconsin, decommis- mittee amendment be agreed to. center, except at the request of the non-Fed- sioned on September 30, 1991, is berthed at The PRESIDING OFFICER. Without eral entity responsible for the operation of Portsmouth, Virginia; and may soon be objection, it is so ordered. the center. berthed at Nauticus, the National Maritime The committee amendment to H.R. SEC. 2. AUTHORIZATION OF APPROPRIATIONS. Museum in Norfolk, Virginia, where she 3084 was agreed to, as follows: There are authorized to be appropriated to would serve as a floating monument and an H.R. 3084 the Secretary of the Interior a total of educational museum: Now, therefore, be it Be it enacted by the Senate and House of Rep- $50,000,000 to make grants under subsection Resolved by the Senate (the House of Rep- resentatives of the United States of America in (a). Amounts so appropriated shall remain resentatives concurring), That it is the sense Congress assembled, available for expenditure through fiscal year of Congress that— 2006. (1) a commemorative postage stamp should SECTION 1. CONTRIBUTIONS TOWARD ESTAB- LISHMENT OF ABRAHAM LINCOLN Mr. ROBERTS. Mr. President, I ask be issued by the United States Postal Serv- INTERPRETIVE CENTER. unanimous consent that the bills be ice in honor of the U.S.S. Wisconsin and all (a) GRANTS AUTHORIZED.—Subject to sub- those who served aboard her; and read the third time and passed, the mo- sections (b) and (c), the Secretary of the In- tions to reconsider be laid upon the (2) the Citizen’s Stamp Advisory Com- terior shall make grants to contribute funds mittee should recommend to the Postmaster for the establishment in Springfield, Illinois, table, and that any statements relating General that such a postage stamp be issued. of an interpretive center to preserve and to the bills be printed in the RECORD, f make available to the public materials re- with the above occurring en bloc. lated to the life of President Abraham Lin- The PRESIDING OFFICER. Without MEASURE READ THE FIRST coln and to provide interpretive and edu- objection, it is so ordered. TIME—S. 3152 cational services which communicate the The bills (H.R. 3084, as amended, and Mr. ROBERTS. Mr. President, I un- meaning of the life of Abraham Lincoln. H.R. 2773) were read the third time and derstand that S. 3152 is at the desk, and (b) PLAN AND DESIGN.— passed. (1) SUBMISSION.—Not later than 18 months I ask for its first reading. after the date of the enactment of this Act, f The PRESIDING OFFICER. The the entity selected by the Secretary of the SALE OF PUBLIC LAND IN clerk will report the bill by title. Interior to receive grants under subsection LINCOLN COUNTY, NEVADA The legislative clerk read as follows: (a) shall submit to the Secretary a plan and A bill (S. 3152) to amend the Internal Rev- design for the interpretive center, including enue Code of 1986 to provide tax incentives a description of the following: EXCHANGE OF LANDS WITHIN THE for distressed areas, and for other purposes. (A) The design of the facility and site. (B) The method of acquisition. STATE OF UTAH Mr. ROBERTS. Mr. President, I ask (C) The estimated cost of acquisition, con- Mr. ROBERTS. Mr. President, I ask for its second reading and object to my struction, operation, and maintenance. unanimous consent that the Senate own request. (D) The manner and extent to which non- proceed to the consideration en bloc of The PRESIDING OFFICER. Objec- Federal entities will participate in the ac- the following bills: Calendar No. 836, tion is heard. quisition, construction, operation, and main- H.R. 2752, and Calendar No. 910, H.R. The bill will be read a second time on tenance of the center. 4579. the next legislative day. (2) CONSULTATION AND COOPERATION.—The plan and design for the interpretive center The PRESIDING OFFICER. The f shall be prepared in consultation with the clerk will state the bills by title. MEASURE PLACED ON THE Secretary of the Interior and the Governor of The assistant legislative clerk read Illinois and in cooperation with such other CALENDAR—H.J. RES. 110 as follows: public, municipal, and private entities as the A bill (H.R. 2752) to direct the Secretary of Mr. ROBERTS. Mr. President, I ask Secretary considers appropriate. the Interior to sell certain public land in (c) CONDITIONS ON GRANT.— unanimous consent that H.J. Res. 110, Lincoln County through a competitive proc- (1) MATCHING REQUIREMENT.—A grant under the continuing resolution just received ess. subsection (a) may not be made until such from the House, be placed on the cal- A bill (H.R. 4579) to provide for the ex- time as the entity selected to receive the change of certain lands within the State of endar. grant certifies to the Secretary of the Inte- Utah. The PRESIDING OFFICER. Without rior that funds have been contributed by the objection, it is so ordered. State of Illinois or raised from non-Federal There being no objection, the Senate f sources for use to establish the interpretive proceeded to consider the bills. center in an amount equal to at least double Mr. ROBERTS. Mr. President, I ask AUTHORIZING ESTABLISHMENT OF the amount of that grant. unanimous consent that the bills be INTERPRETATIVE CENTER (2) RELATION TO OTHER LINCOLN-RELATED read the third time and passed, the mo- SITES AND MUSEUMS.—The Secretary of the tions to reconsider be laid upon the Interior shall further condition the grant table, and any statements relating to WILD AND SCENIC RIVERS ACT under subsection (a) on the agreement of the grant recipient to operate the resulting in- the bills be printed in the RECORD, with Mr. ROBERTS. Mr. President, I ask terpretive center in cooperation with other the above occurring en bloc. unanimous consent that the Senate Federal and non-Federal historic sites, The PRESIDING OFFICER. Without now proceed to the following bills en parks, and museums that represent signifi- objection, it is so ordered. S9774 CONGRESSIONAL RECORD — SENATE October 3, 2000 The bills (H.R. 2752 and H.R. 4579) cally and on a bipartisan basis, and in with fewer and fewer people having rel- were read the third time and passed. which we achieved a decisive victory, atives or friends in the military, or liv- f posed such a threat in the last half cen- ing in communities in which a military tury. base is a dominant feature of the local GLOBAL ROLE V: ROLES OF THE We have spent much of the time in economy. This growing separation be- GOVERNMENT, THE PEOPLE, previous dialogues in discussing the tween the military and civilian worlds AND THE MILITARY IN WAR- proper ends of American national secu- has produced a profound impact on the MAKING rity policy in the post-Cold War era, perspectives and performance of the Mr. CLELAND. Mr. President, today, but if we don’t fix the problems in this U.S. government when it comes to the with my dear friend and wonderful col- ‘‘holy trinity’’ of means—the roles of use of force, and I will return to this league from Kansas, Senator ROBERTS, the public, the military and the gov- point later. we come to the fifth and final in our se- ernment—we are going to be contin- We can bemoan the public’s skep- ries of floor discussions on the global ually frustrated in our achievement of ticism and disengagement, and wish role of the United States. We will begin whatever objectives we set. that it didn’t exist, but it is a fact with consideration of the key instru- Let’s start with the first of Clause- which impacts on all major foreign and ments of national security policy, and witz’ trinity: the people. defense policy issues facing the Con- we will conclude this series with a The post-Cold War world is not only gress. We saw it in the NAFTA debate, presentation of what we have learned producing changes abroad—changes and in the debates on Iraq, NATO and over the course of these dialogs. which we have spoken of at some the Balkans. The inspiration for the first of to- length in our previous global role dis- Now, I believe that the critics of for- day’s topics comes from a source we cussions—but also a number of alter- eign trade and foreign engagement have often cited in this series: The ations here at home. Over the past dec- raise important and legitimate con- great 19th century military thinker, ade or so, we have seen a democratiza- cerns which need to be addressed. I do Karl von Clausewitz, who wrote in his tion in terms of our foreign and defense not believe we can stand behind plati- seminal work on war these words: policies in the sense that the American tudes that ‘‘foreign trade is always Its dominant tendencies always make war public is less and less disposed to leave good,’’ or ‘‘U.S. leadership is always es- a paradoxical trinity. The passions that are these matters to the ‘‘experts,’’ and to sential.’’ In my view, the burden is now to be kindled in war must already be inher- trust the assurances of the ‘‘Establish- on those who would urge engagement ent in the people. The scope which the play ment’’ with respect to the benefits of overseas, whether military, political or of courage and talent will enjoy in the realm of probability and chance depends on the internationalism. economic. As the just discussed public particular character of the commander and While there is certainly nothing opinion data indicate, they have their the army; but the political aims are the busi- wrong with such skepticism, and in- work cut out for them, with widespread ness of government alone. deed a demand for accountability is a indifference, lack of knowledge and These three tendencies are like three dif- healthy and appropriate attitude for doubt about the value of such engage- ferent codes of law, deep rooted in their sub- the public to take, whether on national ment. However, it is a debate worth ject and yet variable in their relationship to security or any other public policy, having, and indeed is essential if we are one another. A theory that ignores any one this democratization of national secu- of them or seeks to fix an arbitrary relation- to achieve the kind of national con- ship between them would conflict with re- rity policy has been marked by wide- sensus we need in this post-Cold War ality to such an extent that for this reason spread public disengagement from the era. alone, it would be totally useless. details of that policy: The second of the war-making trinity Our task, therefore is to develop a theory For example, a 1997 Wall Street Jour- of Clausewitz is the military itself. that maintains a balance between these nal/NBC News survey found that for- Lets talk about the military. The sub- three tendencies, like an object suspended eign policy and defense ranked last, at ject of military reform is a fascinating between three magnets. 9 percent, among issues cited by the and important one in its own right, but Attempts to find the proper balance public as the most important matters is somewhat beyond the scope of our between the roles of the people, the facing the country. dialogues on the U.S. global role. How- military and the government when A 1997 Washington Post/Kaiser Foun- ever, I would like to touch on a few America goes to war have been a major dation/Harvard poll discovered that 64 areas in which the specific needs of our feature of the last 35 years, from the percent of the American public thought Armed Forces, and the perspectives of Gulf of Tonkin Resolution, to Oper- that foreign aid was the largest compo- and about the American military have ation Desert Storm, to Operation Al- nent of the federal budget, when in fact a direct bearing on our role as policy- lied Force. In my opinion, it is an ef- it is one of the smallest at approxi- makers. fort which has not been overly success- mately 1 percent. As perhaps the leading military ana- ful. Certainly in the case of Vietnam, A 1999 Penn and Schoen survey dis- lyst of the Vietnam War, Colonel Harry there was no real attempt to mobilize covered that nearly half—48 percent— Summers, wrote in his excellent book the American public in support of the of the American public felt that the On Strategy: The Vietnam War in Con- war effort, nor for the Executive U.S. was ‘‘too engaged’’ in inter- text: Branch to seek or the Congress to de- national problems, while just 16 per- Prior to any future commitment of U.S. mand that the Constitutional role of cent expressed the view that we are military forces our military leaders must in- the Congress to legitimize the conduct ‘‘not engaged enough.’’ sist that the civilian leadership provide tan- of hostilities be exercised. But I would A 1999 poll for the Program on Inter- gible, obtainable political goals. The po- also contend that much the same pat- national Policy Attitudes found that litical objective cannot merely be a tern is evident in more recent Amer- only 28 percent of the American people platitude but must be stated in con- ican interventions in the Balkans, and wanted the U.S. government to pro- crete terms. While such objectives may to an only somewhat lesser extent in mote further globalization while 34 per- very well change during the course of the Gulf War. cent wanted our government to try to the war, it is essential that we begin The fact that we have emerged from slow or reverse it, and another 33 per- with an understanding of where we in- all of these military interventions cent preferred that we simply allow it tend to go. I couldn’t have said it bet- without major harm—though the nega- to continue at its own pace, as we are ter. As Clausewitz said, we should not tive impact from Vietnam was far from doing now. ‘‘take the first step without considering negligible—is a tribute to the efforts of Related to these results, I personally the last . . .’’ There is an inherent con- our servicemen and women, the capa- believe that the end of the draft and tradiction between the military and its bilities of our weaponry, but also, I the dramatic reductions in defense per- civilian leaders on this issue. For both would suggest, the fact that our vital sonnel levels in recent years—since domestic and international political national interests were never threat- FY85 the size of our armed forces de- purposes the civilian leaders want max- ened in these cases. Only the Cold War, creased by 30 percent—has produced a imum flexibility and maneuverability which by and large was prosecuted ef- growing disconnect between the Amer- and are hesitant to fix on firm objec- fectively, both militarily and politi- ican public and the American military, tives. The military on the other hand October 3, 2000 CONGRESSIONAL RECORD — SENATE S9775 need just such a firm objective as early Gap and the American Use of Force It is generally agreed that the Com- as possible in order to plan and conduct 1816–1992,’’ found: mander in Chief role gives the Presi- military operations. That is according two broad clusters of opinion that track dent power to repel attacks against the to Harry Summers. with military experience, yielding what we United States and makes him respon- Mr. President, I know all too well the call civilian hawks and military doves. sible for leading the armed forces. Dur- kind of price that is paid by our men Specifically, this particular survey ing the Korean and Vietnam conflicts, and women in uniform when our polit- discovered that civilian leaders are however, this country found itself in- ical leaders fail to lay out clear and more willing to use force but more volved for many years in undeclared specific objectives. More than thirty likely to want to impose restrictions wars. Many members of Congress be- years ago, in Vietnam we lacked clear on the level of force to be used, and came concerned with the erosion of and specific objectives. We attempted more supportive of human rights objec- congressional authority to decide when to use our military to impose our will tives, while military leaders are more the United States should become in- in a region far from our shores and, in reluctant to use force but prefer fewer volved in a war or should use our my view, far from our vital national in- restrictions on what level of force to armed forces in situations that might terests, and without ever fully engag- employ, and tend to support more tra- lead to war. ing the Congress or the American peo- ditional ‘‘Realpolitik’’ objectives for On November 7, 1973, the Congress ple in the process. The result was a U.S. foreign policy. Fascinating. Inter- passed the War Powers Resolution over conflict where the politicians failed to estingly, civilian leaders with prior the veto of President Nixon. As Dante provide clear political objectives and military experience were found to hold Fascell, former Chairman of the House where our policy was never fully under- views closer to the military rather Committee on Foreign Affairs noted: stood or fully supported by the Amer- than civilian leadership. The importance of this law cannot be dis- ican people. From what I have seen In other words, those who have seen counted. Simply stated, the War Powers Res- since I came to this distinguished body the face of battle are more reticent olution seeks to restore the balance created in 1997, we have made very little about resorting to force than those in the Constitution between the President and Congress on questions of peace and war. progress on any of these fronts in the who have not. This does not mean they—I should say we—are necessarily It stipulates the constitutional directions years since that time when it comes to that the President and Congress should be America going to war. right in any particular case, but it should certainly give ‘‘civilian hawks’’ partners in such vital questions—to act to- The trend discussed earlier of a grow- gether, not in separate ways. ing disconnect between the military some pause in considering recourse to an instrument whose chief practi- The War Powers Resolution has two and civilians has been perhaps even key requirements. Section 4(a) requires more pronounced among national for- tioners are wary of utilizing. Above all, as was the case with the government the President to submit a report to eign and defense policy-makers. A Congress within forty-eight hours groundbreaking recent study, orga- needing to engage the public far more effectively on questions of foreign pol- whenever troops are introduced into nized by the North Carolina Triangle icy, so must the military and the gov- hostilities or situations where immi- Institute for Security Studies and enti- ernment—including the Congress nent involvement in hostilities is tled ‘‘Project on the Gap Between Mili- —more effectively engage each other if clearly indicated by the circumstances. tary and Civilian Society,’’ made a we are ever going to achieve the kind Section 5(b) then stipulates that if U.S. number of major findings relevant to of balance which Clausewitz wrote of. armed forces have been sent into situa- our discussion today. Let me quote This leads me to the third and final tions of actual or imminent hostilities from the Project’s Digest of Findings piece of the Clausewitz trinity: the the President must remove the troops and Studies: government. As I noted earlier, Colonel within sixty days—ninety days if he re- Americans in the national political elite Summers emphasized that military quests a delay—unless Congress de- are increasingly losing a personal connection leaders must insist that the civilian clares war or otherwise authorizes the to the military. For the first 75 years of the use of force. The resolution also pro- 20th Century, there was a significant ‘‘vet- leadership provide tangible, obtainable political goals. In this country, that vides that Congress can compel the eran’s advantage’’ in American politics: al- President to withdraw the troops at ways a higher percentage of veterans in Con- duty rests squarely on the shoulders of gress than in the comparable age cohort in the President and Congress when it any time by passing a joint resolution. the general population. This veteran’s ad- comes to the business of war, as out- It is important to note, however, that vantage has eroded over the past twenty-five lined by our Founding Fathers when since the adoption of the War Powers years in both chambers of Congress and they drafted our Constitution. Resolution, every President has taken across both parties. Beginning in the mid- Under the Constitution, war powers the position that it is an unconstitu- 1990s, there has been a lower percentage of are divided. Article I, Section 8, gives tional infringement by the Congress on veterans in the Senate and the House of Rep- Congress the power to declare war and the President’s authority as Com- resentatives than in the comparable cohort mander-in-Chief, and the courts have in the population at large . . . Compared to raise and support the armed forces, historical trends, military veterans seem while Article II, Section 2 declares the not directly addressed this vital ques- now to be under-represented in the national President to be Commander in Chief. tion. political elite. With this division of authority there I would submit that although the This particular growing disconnec- has also been constant disagreement, Congress tried to reassert itself after tion is having a major impact on the not only between the executive and the Vietnam War with the enactment central topic of our global role dia- legislative branches, but between indi- of the War Powers Resolution, we have logues. To quote again from the Tri- vidual members of Congress as well, as continued to be a timid, sometimes angle Institute report: we have seen in our most recent de- non-existent player in the government The presence of veterans in the national bates on authorizing the intervention that Clausewitz emphasized must play political elite has a profound effect on the in Kosovo and on the Byrd-Warner a vital role in creating the balance nec- use of force in American foreign policy. At amendment concerning current funding essary for an effective war-making ef- least since 1816, there has been a very dura- of that very operation, dare I say war. fort. Since I came to the Senate, it has ble pattern in U.S. behavior: the more vet- Judging by the text of the Constitution been my observation that the current erans in the national political elite, the less and the debate that went into its draft- system by which the Executive and likely the United States is to initiate the use ing, however, members of Congress Legislative Branches discharge their of force in the international arena. The ef- have a right, and I would say an obliga- respective Constitutional duties in fect is statistically stronger than many other factors known to influence the use of tion, to play a key role in the making committing American servicemen and force . . . The trend of a declining rate of of war and in determination of the women into harm’s way has become in- veterans in the national political elite may proper use of our armed forces, which adequate. Congress continually lacks suggest a continued high rate of military in- has brought Senator PAT ROBERTS and sufficient and timely information as to volvement in conflicts in the coming years. me to this floor, shoulder to shoulder, policy objectives and means prior to I find that statistic astounding. to see if we can’t further articulate and the commitment of American forces. One part of the Triangle Institute work out a consensus on how do we And then, in my opinion, Congress study, titled ‘‘The Civilian-Military commit American forces abroad. largely abdicates its responsibilities S9776 CONGRESSIONAL RECORD — SENATE October 3, 2000 for declaring war and controlling the make a sound decision based on this in- I believe the case has clearly been purse with inadequate and ill-timed formation, and then leave battlefield made that the public, the military, and consideration of operations. management in the hands of those the government—the three under- Perhaps this failure has been a long competent and qualified to carry out pinnings of successful national security time in the making. My dear friend and such a task. Only then will the proper policy—are not now in proper ‘‘bal- colleague Senator BYRD so eloquently roles and balance of the triad Clause- ance,’’ to use Clausewitz’ term. Each stated in an earlier address to this witz spoke of be obtained. And only part of this trinity is skeptical and in- body on the history of the Senate, then will our decisions to commit creasingly disengaged from the other We remember December 7, 1941, as a day of troops be based on the principles we two, with a number of significant and infamy. We mourn the hundreds of American spoke of in our earlier dialogs: (1) a negative effects on our national inter- servicemen who died at Pearl Harbor, and vital national interest, (2) with clear est which we have discussed today and the thousands who gave their lives in the national policy and objectives, and (3) in previous dialogs: a widening divide war that followed. We might also mourn the with a well-defined exit strategy. As between the aspirations of American abrupt ending of the debate over American Senator Mansfield once stressed, foreign policy-makers and the Con- foreign policy. While history proved Presi- gress’ and the public’s willingness to fi- dent Roosevelt and his followers more cor- In moments of crisis, at least, the Presi- rect than their isolationist opponents, it also dent and the Congress cannot be adversaries; nance the necessary means is one such buried for decades the warnings of the isola- they must be allies who together, must de- point; a military and civilian leader- tionists that the United States should not lineate the path to guide the nation’s mas- ship which sees America’s role in the aspire to police the world, nor should it in- sive machinery of government in a fashion world and the means appropriate to se- tervene at will in the affairs of other nations which serves the interests of the people and cure those ends in vastly different in this hemisphere or elsewhere. is acceptable to the people. terms; a national government which is A very wise statement by Senator Beautifully said. deeply divided along partisan lines and BYRD. In light of the problems and issues between the executive and legislative Reasons for the failure of the War just discussed, I would like to take a branches. Powers Resolution and for our current moment to discuss S. 2851, a bill I re- I suggest the chief responsibility for difficulties abound. I believe that part cently introduced with Senators ROB- fixing this dysfunctional system lies of our problem stems from the disputed ERTS and JEFFORDS, which seeks to find squarely with us in the government. As and uncertain role of the War Powers a more workable system for Presi- Clausewitz said, ‘‘the political aims are Resolution of 1973 in governing the dential and congressional interaction the business of government alone,’’ and conduct of the President, as well as the on the commitment of American forces it is the political aims which drive, or Congress, with respect to the introduc- into combat situations. It is a bill de- at least should drive, both military re- tion of American forces into hostile rived from the current system for Pres- quirements and the public’s engage- situations. Once again, these disputes idential approval and reporting to Con- ment, or disengagement, from Amer- continue to resound between both the gress on covert operations, a system ican policy. We must find more and branches and individual members of which was established by Public Law better ways of communicating with our the legislative branch. 102–88 in 1991. By most accounts, this constituents on the realities of our na- In all honesty, however, the realities system has been accepted by both tional interests and the real costs of of our government highlight the fact branches and has worked very well securing them. We must find more and that while the legislature can urge, re- with respect to covert operations, pro- better ways to increase the exchange of quest, and demand that the President ducing both better decisionmaking in experiences and ideas between the gov- consult with members of Congress on the executive branch and improved ernment and the military. And we decisions to use force, it cannot compel congressional input and oversight with must find more and better ways of en- him to follow any of the advice that it respect to these operations. Since overt suring that both the executive and leg- might care to offer. With that in mind, troop deployments into hostilities al- islative branches properly fulfill their as an institution, Congress can do no most certainly constitute a greater constitutional responsibilities in the more than give or withhold its permis- risk to American interests and to arena of national security policy. Professor of Strategic Studies at sion to use force. And while this ‘‘use it American lives, I believe such a system Johns Hopkins University Eliot Cohen or lose it’’ quality of congressional au- represents the very least we should do closed his paper on ‘‘The Unequal Dia- thorizations may make many members to improve the approval and oversight logue: The Civil-Military Gap and the leery about acting on a crisis too soon, process with respect to overt military Use of Force,’’ which is a very inter- delays will virtually guarantee, as Sen- operations. It does not bind or limit esting series of case studies on effec- ator Arthur Vandenberg once stated, the executive branch or military, but tive, and ineffective, civilian and mili- that crises will ‘‘never reach Congress seeks to build upon the principles we tary interaction during wartime, with until they have developed to a point have covered throughout our global these observations, which are ex- roles dialog. where congressional discretion is pa- tremely relevant to our discussion Precisely because the United States thetically restricted.’’ today: What a great quote. I felt that cer- is a democracy, it is important that policy decisions be made democrat- (The lessons of serious conflict) are, above tainly as I tried to vote properly in all, that political leaders must immerse this Chamber months ago in regard to ically. As Michael Walzer observes in themselves in the conduct of war no less Milosevic and his intervention in his article ‘‘Deterrence and Democ- than they do in great projects of domestic Kosovo. racy’’: ‘‘The test of a democracy is not legislation; that they must master their Mr. President, I believe that in view that the right side wins the political military briefs as thoroughly as they do of our obligations to the national in- battle, but that there is a political bat- their civilian ones; that they must demand terest, to the Constitution and to the tle.’’ Policies that pass through public and expect from their military subordinates young American servicemen and debate and inspection emerge all the a candor as bruising as it is necessary; that both groups must expect a running conversa- women whose very lives are at stake stronger for it, because they enjoy tion in which, although civilian opinion will whether it be a ‘‘contingency oper- greater respect both at home and not dictate, it must dominate; that that con- ation’’ or a full-scale war, neither the abroad. Instead of seeing executive-leg- versation will include not only ends and poli- executive or legislative branches islative conflict over foreign policy as cies, but ways and means. should be satisfied with the current sit- a cause for dismay, we should recognize In other words, we in Government, uation which results in uncertain sig- that healthy democracies argue over the constitutionally established polit- nals to the American people, to over- the wisdom of policies. Debate is what, ical leaders, must step up to the plate seas friends and foes, and to our armed ultimately, produces better policy. And and do our jobs when it comes to na- forces personnel. In making our deci- this is precisely the role of the govern- tional security policy—especially when sion to authorize military action, Con- ment, both the President and Congress, it comes to making war—with great gress should work to elicit all advice in fulfilling our constitutional duties humility as to our own limitations, and information from the President on and achieving the proper balance of the with great care and forethought, but down to the battlefield commanders, Clausewitz trilogy. with diligence and determination. October 3, 2000 CONGRESSIONAL RECORD — SENATE S9777 Mr. President, it is my honor and dis- the next administration and the Con- not allow our military leaders to cre- tinct personal privilege to yield to the gress. ate clear, concise, and effective mili- distinguished Senator from Kansas, With regard to two of the Clausewitz tary strategies to accomplish any spe- Mr. ROBERTS, for further remarks. so-called trinities, the need for govern- cific goal. Unclear political goals lead Mr. ROBERTS. Mr. President, before ment to gain public support for na- to wars and involvement with no exit I begin, I would like to pay tribute and tional security policy, Senator strategy. special thanks to Scott Kindsvater, CLELAND already summarized our pur- A brief examination of the chain of who happens to come from my home- pose very well when he said: events leading up to the use of force in town of Dodge City, KS, who is a major We must find more and better ways of com- Kosovo certainly proves the point: in the U.S. Air Force and is a congres- municating with our constituents on the re- On March 23 of 1999, the Senate con- sional fellow in my office. He is an F– alities of our national interests and the costs ducted minimal debate regarding the 15 pilot second to none. He is going to in securing them. use of force in Yugoslavia after troops be assigned to the Pentagon. His tour Senator CLELAND went on to say: had already been deployed. S. Con. Res. of duty will end about the same time as We must find more and better ways to in- 21 passed, authorizing the President to the election. I thank him for all of his crease the exchange of experiences and ideas conduct military air operations. On March 24, one day later, combat help, all of his homework, all of his between our Government and our military. air operations did begin. Finally, MAX said: study, and for gathering together the On March 26, the President notified material that has been so helpful to me We must find more and better ways of en- Congress, consistent with the War to take part in this foreign policy dia- suring that both the executive and our legis- Powers Resolution, that operations lative branches properly fulfill their con- log. began on March 24. I thank my good friend and col- stitutional responsibilities in the arena of national security policy. On March 27, after the fact, the league, Senator CLELAND. We again House considered the use of force and In this regard, I will comment on the come to the floor of the Senate for failed to pass S. Con. Res. 21 on March first of Senator CLELAND’s points, the what is our fifth dialog with regard to 28. our Nation’s role in global affairs and fact that our political leadership must On April 30, 18 Members of the House, our vital national security interests. make sure that the public understands having serious objection to that policy, This effort has been prompted by our and supports the use of military force. filed suit against the President for con- conviction, as the Senator has said, Former Joint Chief of Staff, Gen. ducting military activities without any that such a dialog, such a process is ab- Colin Powell asserted our troops must authorization. solutely necessary, if we are to arrive go into battle with the support and un- Then on May 20, 1999, the emergency at a better bipartisan consensus on na- derstanding of the American people. supplemental appropriations bill for tional security policy, a consensus our General Powell contended back in 1993 fiscal year 1999 finally passed, and it Nation deserves and needs but has been that the key to using force is to first provided funding for the ongoing U.S. lacking since the end of the cold war. match the political expectations to Kosovo operations. Both Senator CLELAND and I have the military means in a wholly realistic On May 25, the 60-day deadline passed privilege of serving together on the way and, second, to attain very deci- following Presidential notification of Senate Armed Services Committee. sive results. He said a decision to use military operations, and the President The distinguished Presiding Officer force must be made with clear purpose didn’t seek a 30-day extension, noting also serves on that committee and pro- in mind and added that if the purpose instead that the War Powers Resolu- vides very valuable service. As a mat- is too murky—and, goodness knows, we tion is constitutionally defective. ter of fact, Senator CLELAND and I sit have had a lot of that in recent years— Then on February 18, 2000, a Federal directly opposite one another. During our political leadership will eventually appeals court affirmed the district hearing after hearing on the leading have to find clarity. court decision that the House of Rep- national security issues of the past 4 As Senator CLELAND has pointed out resentatives Members lacked standing years, it became obvious that while we already, unfortunately, today it seems to sue the President relative to the did not agree on each and every issue, that national security and foreign pol- April 30 suit of the previous year. we shared many similar views and con- icy issues represent little more than a I might add at this juncture that cerns. I call it ‘‘the foreign policy and blip on the public’s radar screen. Obvi- Senators CLELAND and SNOWE, I, and national security eyebrow syndrome’’; ously, the public this evening will be others had all previously successfully that is to say, when MAX and I hear tuned to either the baseball playoffs or amended various appropriations meas- testimony we think is off the mark, a the debate. He quoted news surveys and ures mandating the administration re- little puzzling, or downright silly, our polls showing foreign policy and de- port to the Congress specific policy eyebrows go up, and that is usually fol- fense ranking last among issues cited goals and military strategy objectives lowed by a great deal of head shaking by the public as most important that prior to the involvement of any U.S. and commiserating. face the country. That is amazing to troops. The result has been a series of for- me. Most, if not all, of those reports were eign policy dialogs: No. 1, what is the A case in point: While we are all late, were not specific or pertinent to U.S. global role? No. 2, how do we de- hopeful that the situation in the the fast changing situation in the Bal- kans. We at least tried. fine and defend U.S. vital national se- former Yugoslavia will result in the And, Mr. President, I remember well curity interests? No. 3, what is the role end of the Slobodan Milosevic regime the briefing by members of the Admin- and the possible transition to a more of multilateral organizations in the istration with regard to why the ongo- democratic government, U.S. and world today and our role within them? ing military operation in Kosovo was NATO military intervention and con- No. 4, when and how should U.S. mili- in our vital national interest. I still tinued presence in the Balkans lacks a tary forces be deployed? have my notebook and the list: Today Senator CLELAND has chosen a clearly defined policy goal or any real- The Balkans represent a strategic theme taken from the 19th century istic timetable for any conclusion. As a bridge to Europe and the Middle East. military strategist, Gen. Karl von result, while most Americans may have The current conflict could spin into Clausewitz, called ‘‘The Trinity of War really forgotten about or are not fo- Albania and include Macedonia, Greece Making,’’ or the role of government, cused on Kosovo today, nevertheless, and Turkey. After all World War I the military, and the public in con- 6,000 American troops still remain started in the same region. ducting and implementing our national there and could remain there for an- We should act to prevent a humani- security policy. other decade. That is a difficult sell tarian disaster and massacre of thou- Finally, in closing these dialogs for with regard to public understanding. sands of refugees. this session of Congress by Senator In that regard, as Senator CLELAND If we do not act, it will endanger our CLELAND, I have prepared a summary of has pointed out, Congress bears part of progress in Bosnia. agreed upon principles which we sug- that responsibility. It is easy to criti- The leadership and credibility of gest to this body that both he and I be- cize, but we bear part of that responsi- NATO into the next century is at lieve represent a suggested roadmap for bility. Unclear political objectives do stake. S9778 CONGRESSIONAL RECORD — SENATE October 3, 2000 We must oppose Serb aggression. Certainly the vast majority of Mr. President, having spoken to the With all due respect Mr. President, Kosovars were subjected to harassment role of government and the public with these arguments did not match the and much worse and their crisis was as the specific example of Kosovo, let me fast-changing conditions in the Bal- President Clinton described, a humani- turn to the third topic of the ‘‘Clause- kans. 20–20 hindsight now tells us the tarian one. But, the Kosovars also had witz Trinity’’, the military. incremental bombing campaign and their political objectives and ambi- Mr. President, I am sure that no Gen- publicly ruling out the use of ground tions; an independent Kosovo ruled by eral throughout history, be he Clause- troops exacerbated the refugee tragedy. themselves; a goal they press for today witz or Eisenhower would condone The present Presiding Officer serves by political intimidation and violence. sending troops that are not ready into with me on the Senate Intelligence The United States has, on the other battle. In the not-mincing-any-words Committee, and we had a hearing after hand, continued to oppose independ- department, I am concerned and frus- part of these problems developed. ence and has supported a multicultural trated that our United States Military Somehow intelligence reports pre- society for Kosovo. Vice President today is stressed, strained, and in too dicting the law of unintended effects GORE has said that in Kosovo there many cases hollow. went unheeded or were ignored. must be a genuine recognition and re- I often say in Kansas that our first And, in the end, U.S. stated goals spect for difference and the creation of obligation as Members of Congress is to changed when the original goals fell a tolerant and open society where ev- make sure our national security capa- short. We were assured we were fight- eryone’s rights are respected, regard- bility is equal to our vital national se- ing, not for our national interest but less of ethnic or religious background curity responsibilities. How do we do selflessly to save lives and promote de- and where all groups can participate in this? mocracy, fighting in behalf of human- government, business, the arts and One way is to do exactly what Sen- ity. Mr. President, in my view, neither education. ator CLELAND and I try to do and that the Senate, the House or the adminis- These are fine and noble goals but is to personally visit our men and tration can square these goals with they are ‘‘ours’’ not those of the women in uniform stationed here at what has actually taken place and is Kosovars. We have two choices. First, home and throughout the world. We, taking place in the Balkans. I don’t we can accept the political ambitions along with a majority of members of question the intent. for a mono-cultural and independent the Armed Services Committee, visit The most optimistic lien today is state purged of non Albanians or sec- with and seek advice from the ranks; that Kosovo is liberated after the ond, we can attempt to stay in Kosovo our enlisted, our non-commissioned of- mighty efforts of the U.S. led NATO co- until we can somehow transform en- ficers, officers and commanders. alition. Well, as described by James trenched and long standing political Mr. President, when doing that and Warren of the Chicago Tribune, it is a and ethnic culture and teach the values when making remarks and observa- of diversity and religious toleration. liberated total mess. tions before many military groups; ac- He quotes British academic and This is on small task and in my view, tive duty, reserve and guard units, I al- international relations analyst Tim- It may not sustainable over the long ways acknowledge those in the mili- othy Garton Ash, a professor at St. term both in terms of cost, benefit and tary must operate and perform their public opinion. Antony’s College, Oxford, who reviewed duties within the chain of command. Will the American people respond? six books on the conflict with unbiased But, I also ask them for their candor Do they even care? In their book, and honesty. perspective. ‘‘Misreading the Public, the Myth of a And they have provide me and others According to Warren, most Ameri- New Isolationism,’’ Steven Kull and that with spades. cans have forgotten about the war by I.M. Destler of the Brookings Institu- Those in the Navy tell me the Navy now, so they don’t care much about the tion, make the case that the notion cannot or soon will not be able to per- fact the so called winners are totally that public attitudes are typified today form assigned duties with current force unprepared for dealing with peace. Vio- by new isolationism, greater paro- structure. The bottom line is there are lence and chaos reign in Kosovo. The chialism and declining interest in the not enough ships or submarines in the victims and the ‘‘good guys,’’ the world is simply not true. fleet and training and weapons inven- Kosovars have conducted reverse eth- They argue most Americans do not tories are inadequate. nic cleansing under the noses of U.S. believe we should disengage from the Those in the Army tell me the train- and NATO troops. world and support international en- ing and doctrine command is almost We have, in fact, created a new gagement and for the United States to broken and peacekeeping operations Kosovo apartheid. Having failed to stop remain involved but with greater em- are taking their toll on combat readi- the killing, we are proving unable to phasis on cooperative and multilateral ness. win the peace or prevent revenge in- involvement. They also argue that Those in the Air Force repeat what is spired reverse ethnic cleansing. when presented with facts, reasonable common knowledge—pilot retention Moreover, since the Balkan war, goals and alternatives, that public sup- problems are legion. The Air Force is badly fought and with no clear end port can be gained. short about 1,200 pilots today. Stra- game, other nations have increasingly That is the point, Mr. President. We tegic lift in both air and sea is inad- been united in criticizing U.S. clout as have to do a better job. Member of the equate. we wield unparalleled power on the Senate need to participate in the daily The Marines tell this former marine world stage and have reacted with grind of overseeing Administration they have significant problems in the what some refer to as a new arms race. policies, passing judgment, and behav- operation and maintenance of their Since we can be sure there will be ing as a co-equal branch. When a ma- Harrier and helicopter fleet. They tell other calls for intervention in the jority, if a majority can be found, feels me they are meeting their recruiting world, it is incumbent on us to ask a President oversteps constitutional and retention challenges but they are whether a more effective approach ex- barriers or threatens to do so, we working harder and harder to achieve ists. should respond with statutory checks, that goal. President Clinton has, in fact, pro- not floor speeches and sense-of-the- Overall, those in command tell us— claimed to the world, that if a state Senate resolutions. and the figures are plain to see—that sought to wipe out large numbers of in- In this regard Senator CLELAND has operation and maintenance accounts nocent civilians based on their race or done us a favor with his proposal de- have been robbed for eight years to pay religion, the United States should in- rived from the current system for Pres- for ever increasing peace keeping and tervene in their behalf. Stated such, a idential approval and reporting to Con- now peace enforcement missions. public support can be garnered for such gress on covert operations. Senator Spare parts are hard to come by, we a policy. CLELAND has candidly pointed out his are short of weapons both for practice But, as Kosovo has demonstrated, bill does not represent a consensus and combat. Mission capable rates are things are not that simple. As Adam view and his introduction of the legis- consistently down. Recent press re- Wolfson pointed out in his article with- lation is to stimulate further discus- ports state 12 of 20 major Army train- in Commentary magazine; sion. Let the discussion begin. ing centers are rated C–4, the lowest October 3, 2000 CONGRESSIONAL RECORD — SENATE S9779 readiness rating. A Navy Inspector must keep this equipment in repair to main- cup and poured water into it. I de- General Report says Navy fliers are tain readiness. It drains our resources—re- scribed all the missions that the mili- leaving port at a lower stage of readi- sources we should apply to modernization of tary had. Then I described what they ness. The Air Force reports that its the traditional systems and development of had to work with. I said: Keep pouring new systems. readiness rates for warplane squadrons So we stretch out our replacement sched- the water and some water might come continues to decline. ules to ridiculous lengths and reduce the out. In other words, the services can’t Many units are on frequent tem- quantities of new equipment we purchase, carry all the water they were intended porary duty assignments or are de- raising the cost and still durther delaying to carry. Of course, what I didn’t say ployed most of the year on missions modernization. was that I had drilled a hole in the cup. that many believe are of questionable I am very concerned if what I have Of course, some of the water was com- value. When the troops come home, described is even close to factual—and ing out. But it made a good audiovisual their training is shortchanged based on I am afraid it is based upon my own tool. the lack of time available for training conversations with the men and women I thank the distinguished Senator for and lack of resources. Maintenance re- of our military, that we are headed in his help. I didn’t bring one here to- quired for old equipment takes signifi- a very dangerous direction. night. Don’t worry. We are not going to cant time away from other missions, I realize the readiness of our military get anybody wet. from family and it is very costly. has become an issue in the current To be fair, Mr. Bacon stated he be- There is another related problem and presidential campaign. And, it is not lieves our forces are well equipped, challenge, that of morale. There is a my intent to take sides in that debate trained and led. I will acknowledge the growing uneasiness with military men during this policy forum. I might add I ‘‘led’’ part. The point is too much at- and women that their leadership either think in some ways this debate is long tention has been placed on the tip of does not care or is out of touch with overdue. the spear of U.S. military might. their problems. By leadership, I am in- Another way to determine our mili- Mr. Bacon is correct, the Secretary cluding the Congress of the United tary readiness is to ask those in of Defense is correct, and others are correct. I think we all agree that the States. Soldiers, sailors, airmen, ma- charge. And, Senator CLELAND and I, rines tell me they are stressed out and along with members of the Senate tip of the spear is ready. It is tough and dissatisfied and leaving. Armed Services Committee did just it is lethal. But, just as important but not often This has been an anecdotal out- that last week. The joint chiefs of staff discussed is the shaft of the spear. pouring from military commanders in came before the committee. Not with- Range, sustainability, lethality, accu- the field simply fed up with current out some not so subtle advice from on racy and the deterrence capacity of the quality of life and readiness stress. high. spear as a weapon is greatly reduced if Pick up any service, military or de- Prior to the joint chiefs testimony, Administration spokesman Kenneth the shaft is weak or damaged. fense publication or read any story in What comprises the shaft of our mili- Bacon said Defense Secretary Cohen the press and what we have is equal op- tary readiness spear? portunity frustration. told the Chiefs he expected them to Let us try the adequacy of critical A February study by the Center for play straight on the readiness issue, to air and sea lift to sustain the force or Strategic and International Studies give the facts, not to ‘‘beat the drum get the force to the fight in a timely warns us about ‘‘stress on personnel with a tin cup’’ but to talk honestly manner. and families, problems with recruiting about the pressures they face from the Let us try the adequacy of the re- and retention, and for some, declining operations their forces are undergoing. serve of key repair parts and weapons trust and confidence in the military in- Well, Mr. Bacon need not have wor- inventory to sustain the battle. stitution and its leaders.’’ ried. The Chiefs testified and shot pret- Let us talk about the effectiveness Half of the respondents in the survey ty straight. On an annual basis the Ma- and adequacy of training time and said their unit did not have high mo- rines said they needed approximately funding. rale and two thirds said stress was a $1.5 billion to be the fully modernized We should mention the impact of problem. A recent Army study at Fort 911 force in readiness we expect of quality of life from pay to health care Leavenworth, the intellectual center of them. The Air Force told us they need- to housing on the warrior’s willing- the Army, located in my homes state ed $20 to $30 billion, the Navy some $17 ness—and they are warriors—to com- of Kansas, warned the number of lieu- billion and the Army $10 billion. That mit to a career in the military. tenants and captains leaving the Army totaled up to somewhere between $48 to We should mention the impact of the is now over 60% compared to 48% a dec- $60 billion more the Chiefs feel each significant operational tempo of the ade ago. service needs to perform its mission. military and the impact that has on In a survey taken at Fort Benning, Those figures, by the way, compare the total military spear. outgoing captains complained they with a recent estimate by the Congres- We should also mention the effect of were disillusioned with the Army mis- sional Budget Office regarding the cost mission quality and duration on readi- sion and lifestyle, struggling to main- the CBO deems necessary to enable the ness to fight and win the nation’s wars; tain a functional family life. The services to meet their mission obliga- and American soldier has gone from a tions. The services’ preparation for the fu- homeland protector of vital national Lord knows what the Chiefs would ture, joint battlefield in an environ- interests to nomadic peace keeper. His have requested if they had beat the ment where asymmetric warfare will weapons, on the cutting edge, some drum with a tin cup. And, I must admit be the norm and the battlefield may be complain are beginning to rust. I am disappointed by the suggestion in in an urban environment. During this time there has been quite Mr. Bacon’s warning that the chiefs I do not mean to pick on Mr. Bacon, a transition period Mr. President. would ever provide anything but their notwithstanding his comments, the Stretching from the Reagan, Bush, and honest testimony before the Congress, primary purpose of our military as de- Clinton administrations, military per- after all each of the Chiefs swore to fined from Clausewitz to Colin Powell sonnel levels declined by 40 percent, provide their honest, candid assess- is the readiness of the force to carry spending dropped 35 percent and mean- ment during their nomination hear- out the National Strategy. I have grave while the number of U.S. forces sta- ings. concerns that if we look behind the tip tioned abroad increased and remains I always assume they do just that. of the spear of U.S. military readiness, high. With all of the pressures of the cur- our forces are not ready. And, if that is Under Secretary for Defense for Ac- rent political season, perhaps Mr. Ba- banging on our readiness capability quisition and Technology, Jacques con’s concern was understandable, with a tin cup, so be it. Gansler recently stated: after all he is a spokesman. The point is that we in the Congress We are trapped in a death spiral. The re- I brought a tin cup to the hearings have the obligation and responsibility quirement to maintain our aging equipment last week. The distinguished acting to provide the resources our Armed is costing us more each year in repair costs, Presiding Officer looked with some Forces need to protect our vital na- down time and maintenance tempo. But, we shock and amazement as I had a tin tional interests. S9780 CONGRESSIONAL RECORD — SENATE October 3, 2000 There is the real debate that should process for a number of years as we in progress, we believe it is only fair to take place. Our former NATO allied have discussed American foreign policy provide the Senate—which has in- commander, Wes Clark recently asked issues, a special thanks goes to him. A dulged us with many hours of floor the real pertinent question. How special thanks also to Tricia Heller of time to pursue this project—and to should the armed services be used? If my staff, and Andy Vanlandingham; those who have followed our efforts readiness is a priority, what is it we they have been invaluable in helping with interest and encouragement to should be ready for? General Clark said me form some of my conclusions about lay out the lessons we have learned and it’s high time we had this debate and America’s global role in the world. some general principles which we be- settled the issue. I thank very much my dear friend lieve should guide our national secu- While I am not sure we will ever set- from Kansas. It is an honor to be with rity policies in the years ahead. tle the issue, it is time for the debate him, continuing our dialog on Amer- At this point, I yield again to my and I have a suggestion, I even have a ica’s role in the world in the 21st cen- partner in these dialogues, Senator road map. tury, particularly in terms of military PAT ROBERTS of Kansas, but first I The Senator from Georgia has during commitments, our footprint around the want to thank him for all of his help in our past dialogues referred to the Com- world, so to speak, and its rationale. It this undertaking. His experience, his mission on America’s National Inter- is a pleasure to stand shoulder to good humor and his wisdom have made ests and the Commission’s valuable shoulder with him in a bipartisan way, our dialogues both instructive and ex- 1996 report. As a matter of fact, we to see if we can’t find a consensus that tremely enjoyable. I yield to Senator have both referred to this report and might lead us well into the 21st cen- ROBERTS. we found it most helpful. tury in terms of our foreign policy. Mr. ROBERTS. Mr. President, with The good news is that the commis- Mr. President, when Senator ROB- all those accolades, the Senator missed sion has updated its findings for the ERTS and I embarked on this series of one—I had one other line in there. year 2000. I have it in my hand. It has Global Role Dialogues back in Feb- I commend my good friend for his set forth a clear and easy-to-under- ruary, we set as our goal the initiation commonsense approach to our coun- stand list of recommendations that at of a serious debate in this great insti- try’s future. I thank him. I applaud least in part can answer the question tution of the United States Senate on him for his leadership. He has begun posed by General Clark and many oth- the proper role of our country in the what I think is a trail-blazing initia- ers: ‘‘Ready for what?’’ post-cold war world. We both believed— tive. This has been, as he has indicated, Senator CLELAND referred to this and continue to believe—that such a a year-long bipartisan foreign policy challenge during his testimony with process is absolutely necessary if we dialog endeavor. We thank staff and the Joint Chiefs last week. He pointed are to arrive at the bipartisan con- various folks on the floor for their pa- out, as I have tried to do in some re- sensus on national security policy tience. I learned a great deal from the spects, America is adrift, spending a which our Nation so badly needs, but distinguished Senator from Georgia. He great deal of time in what may be im- has been lacking since the fall of the said he learned from me. I learned from portant interests we all agree with but Soviet Union. While the vagaries of him. ignoring matters of vital national in- Senators’ schedules have unfortunately As the Senator mentioned, we would terest. limited somewhat our ability to in- now like to present our lessons learned The authors have summarized the na- volve more Senators in this process, I from our year-long dialogs, these dia- tional interest by saying that we have want to thank Senators HUTCHISON, logs that we began because we both felt vital national interests: We have ex- HAGEL, LUGAR and LEVIN who all made our foreign policy agenda had run tremely important, we have important, important contributions to these dis- aground. We wanted to start a series of and less important or secondary inter- cussions. Senator ROBERTS and I will these dialogs, these debates or col- ests. be exploring ways in which we can loquys, in order to arrive at a con- My dear friend knows we are spend- broaden this dialogue in the next Con- sensus concerning the future of our Na- ing an awful lot of time on important gress. tion’s foreign and defense policies. issues and less important or secondary When we began our discussions we We condensed our five dialogs into issues—as far as I am concerned, not also indicated that we had far more seven foreign policy principles. These enough time with extremely important questions than definitive answers. And principles are not only a compilation and vital. while we cannot claim to have found of our dialogs, but also a summary of I commend this report to the atten- any magic solutions or panaceas for the lessons learned from the various tion of my colleagues and all interested the challenges facing the United States discussions with colleagues, as the Sen- parties. The commission has identified on the global scene as we approach the ator has indicated, foreign policy six cardinal challenges for our next end of the Twentieth Century, I believe elites, from academia and the govern- President and the next Congress more I can speak for Senator ROBERTS when ment, and from several consultations along the lines of the principles that I say that we believe we have learned with many military leaders. These we have agreed to and we will rec- much from the writings and state- seven foreign policy principles are sim- ommended in just a moment. ments of many, many others, in this ple. They are realistic. They are sus- I ask unanimous consent the execu- country and abroad, who have thought- tainable. We believe they would sup- tive summary from the report by the fully considered these questions we port and secure our national interests. Commission on America’s National In- have been examining. We strongly believe the following prin- terests, which is much shorter than the We have drawn heavily on the work ciples are a step in the right direction. book, be printed in the RECORD fol- of such entities as the Commission on We urge the next administration of lowing the conclusion of our remarks. America’s National Interests—on Congress and all of our colleagues in The PRESIDING OFFICER. Without which Senator ROBERTS serves with the Congress to begin the process of objection, it is so ordered. distinction—, the U.S. Commission on trying to articulate a coherent na- (See Exhibit 1.) National Security/21st Century, and tional security strategy. Mr. ROBERTS. I yield to my distin- the ODC’s America’s National Interests I again yield to the Senator from guished friend. in Multilateral Engagement: A Bipar- Georgia. Mr. CLELAND. I thank Senator ROB- tisan Dialogue. We have consulted the Mr. CLELAND. Mr. President, these ERTS for that wonderful presentation. work of a large number of academics, are not the ‘‘seven deadly sins,’’ but I We have reached several conclusions and governmental, military and opin- think in many ways it is a sin if we in this year-long dialog regarding ion leaders from around the world. violate these basic fundamental lessons America’s global role. Before I get to And, for myself, I have certainly that we have learned. some of the conclusions, may I say a learned a great deal from my friend First and foremost, we believe as a special thank-you to my key staff and colleague, the distinguished Sen- nation—including government, media, members. Mr. Bill Johnstone, who has ator from Kansas. academia, personalities, and other been the absolute force behind my re- While what we are about to say is far leaders—we need to engage in a serious marks and has helped my thought from complete and very much a work and sustained national dialog to do October 3, 2000 CONGRESSIONAL RECORD — SENATE S9781 several things: First, define our na- ported by the American public, as de- ical objectives; determine whether non- tional interests and differentiate the tailed in ‘‘The Foreign Policy Gap: military means will be effective, and if level of interest involved, spell out How Policymakers Misread the Public’’ so, try them prior to any recourse to what we should be prepared to do in de- from the University of Maryland’s Cen- military force. We should remember fense of those interests; second, build a ter for International and Security the quote from General Shelton: bipartisan consensus in support of the Studies. The military is the hammer in our foreign resulting set of interests and policies. These include: policy toolbox but not every problem is a As a starting point, within the Sen- Armed Forces—which need to be re- nail. ate, we would encourage the Foreign formed to meet the requirements of the We should ascertain whether mili- Relations Committee and our own 21st Century; tary means can achieve the political Armed Services Committee upon which Diplomatic Forces; objectives. we both sit to hold hearings on the fin- Foreign Assistance; We should determine whether the ished products of the Commission on United Nations Peacekeeping Oper- benefits outweigh the costs (political, America’s National Interests, the U.S. ations—which also need to be reformed financial, military), and that we are Commission on National Security/21st to become much more effective; prepared to bear those costs. Century and other relevant consider- Key Regional Organizations—includ- We should determine the ‘‘last step’’ ations of these critical topics. ing NATO, the Organization of Amer- we are prepared to take if necessary to I yield to the Senator from Kansas. ican States, the Organization for Afri- achieve the objectives. Mr. ROBERTS. Here is principle No. can Unity and the Association of South I wonder what that last step would 2 that the distinguished Senator and I East Asian Nations. be. It is one thing to have a cause to have agreed upon. I again yield to Senator ROBERTS. fight for. It is another thing to have a The President and the Congress need Mr. ROBERTS. Let’s try principle cause that you are willing to die for. In to, first, find more and better ways to No. 4. We are the only global super- too many cases today, it doesn’t seem increase communications with the power, and in order to avoid stimu- to me that we have the willingness to American public. We both have talked lating the creation of a hostile coali- enter into a cause in which we are about this at length in our previous tion of other nations, the United ready to die but it seems to me we are discussion with the American public on States should, and can afford to, forego sure willing to risk the lives of others the realities of our international inter- unilateralist actions, except where our in regards to limited policy objectives. ests and the costs of securing them. vital national interests are involved. That’s not part of the principle. That’s I could go into a long speech on how The U.S. should pay international just an observation in regard to the I tried to convince the Kansas wheat debt. last step recommendation. farmer that first he must have secu- The U.S. must continue to respect We should insist that we have a rity, then he must have stability, then and honor international commitments clear, concise exit strategy, including he must have an economic future, then and not abdicate our global role leader- sufficient consideration of the subse- he may get $4 wheat at the country ele- ship. quent role of the United States, re- vator, but it all starts with security. Finally, the U.S. must avoid unilat- gional parties, international organiza- Second, it finds more and better ways eral economic and trade sanctions. tions and other entities in securing the to increase the exchange of ideas and Unilateral sanctions simply don’t work long-term success of the mission— experiences between government and as a foreign policy tool. They put Kosovo is a great example. the military to avoid the broadening American businesses, workers, and Finally, insist on Congressional ap- lack of military experience in the po- farmers at a huge competitive dis- proval of all deployments other than litical elite. We must find more and advantage. The U.S. needs to take a those involving responses to emergency better ways of ensuring that both the harder look at alternatives, such as situations. executive and legislative branches ful- multilateral pressure and more effec- The Senator referred to the amend- fill their constitutional responsibilities tive U.S. diplomacy. ment introduced by the distinguished in national security policy concerning I yield to the distinguished Senator chairman of the Armed Services Com- military operations other than de- from Georgia. mittee, Senator WARNER, and that of clared war. Mr. CLELAND. Fifth, with respect to Senator BYRD. I voted for that. I do not And, as a result of our second prin- multilateral organizations, the United think it was an abdication of our re- ciple, Senator CLELAND sponsored the States should: sponsibilities. bill of which I was proud to cosponsor, More carefully consider NATO’s new Again, those of us in Congress, the S. 2851, requiring the President to re- Strategic Concept, and the future di- majority, should approve all deploy- port on certain information before de- rection of this, our most important ments other than those involving re- ployments of armed forces. This bill international commitment; Press for sponses to emergency situations. basically requires the President to re- reform of the UN’s and Security Coun- I yield to the Senator. port information of overt operations cil’s peacekeeping operations and deci- Mr. CLELAND. Beautifully said. I very similar to the law requiring the sionmaking processes; Fully support could not have said it better, nor con- President to report certain information efforts to strengthen the capabilities of cur more. prior to covert operations. It makes regional organizations including the Finally, the United States can, and sense to me. I yield to the Senator European Union, the Organization of must, continue to exercise inter- from Georgia. American States, the Organization for national leadership, while following a Mr. CLELAND. Third, the President African Unity, and the Association of policy of realistic restraint in the use and the Congress need to urgently ad- Southeast Asian Nations—to deal with of military forces in particular, by: dress the mismatch between our for- threats to regional security; and Pursuing policies that promote a eign policy ends and means, and be- Promote a thorough debate, at the strong and growing economy, which is tween commitments and forces by: UN and elsewhere, on proposed stand- the essential underpinning of any na- Determining the most appropriate in- ards for interventions within sovereign tion’s strength; maintaining superior, strument—diplomatic, military, or states. ready and mobile armed forces, capable other—for securing policy objectives; I yield to the distinguished Senator of rapidly responding to threats to our Reviewing carefully current Amer- from Kansas. national interests; strengthening the ican commitments—especially those Mr. ROBERTS. Principle No. 6: In non-military tools discussed above for involving troop deployments—includ- the post-cold-war world, the U.S. securing our national interests; and ing the clarity of objectives, and the should adopt a policy of realistic re- making a long-term commitment to presence of an exit strategy; and straint with respect to the use of U.S. promoting democracy abroad via a Increasing the relatively small military force in situations other than comprehensive, sustained program amount of resources devoted to the key those involving the defense of vital na- which makes a realistic assessment of instruments for securing our national tional interests. In all other situations, the capabilities of such a program as interests—all of which can be sup- we must: Insist on well-defined polit- described by Thomas Carothers in his S9782 CONGRESSIONAL RECORD — SENATE October 3, 2000 excellent primer on ‘‘Aiding Democ- pire. With these extraordinary advantages, American national interests are vital, which racy Abroad: The Learning Curve’’. America today is uniquely positioned to are extremely important, and which are just I hope it is very clear that Senator shape the international system to promote important. Readers will note a sharp con- international peace and prosperity for dec- trast between the expansive, vague asser- ROBERTS and I are not advocating a re- ades or even generations to come. tions about vital interests in most discussion treat from America’s global leadership America adrift.—Great power implies great today, and the Commission’s sparse list. role, and are not advocating a new responsibility. But in the wake of the Cold While others have claimed that America has form of isolationism. We both believe War, the U.S. has lost focus. After four dec- vital interests from the Balkans and the Bal- our country has substantial and ines- ades of unprecedented single-mindedness in tics to pandemics and Taiwan, the Commis- capable self-interests which necessitate containing Soviet Communist expansion, the sion identifies only five vital U.S. national our leadership. However, when it comes United States has seen a decade of ad hoc interests today. These are (1) to prevent, fits and starts. A defining feature of Amer- deter, and reduce the threat of nuclear, bio- to the way we exercise that leadership, ican engagement in recent years has been especially when it involves military logical, and chemical weapons attacks on the confusion. The reasons why are not difficult United States or its military forces abroad; force, we do believe that our national to identify. From 1945 to 1989, containment (2) to ensure U.S. allies’ survival and their interests sometimes require that we of expansionist Soviet communism provided active cooperation with the U.S. in shaping use restraint. The alternatives—wheth- the fixed point for the compass of American an international system in which we can er a unilateralism which imposes di- engagement in the world. It concentrated thrive; (3) to prevent the emergence of hos- rect resource costs far beyond what the minds in a deadly competition with the So- tile major powers or failed states on U.S. viet Union in every region of the world; mo- Congress or the American people have borders; (4) to ensure the viability and sta- tivated and sustained the build-up of large, bility of major global systems (trade, finan- shown a willingness to finance or an standing military forces and nuclear arse- isolationism which would fail to secure cial markets, supplies of energy, and the en- nals with tens of thousands of weapons; and vironment); and (5) to establish productive our national interests in this increas- precluded the development of truly global relations, consistent with American national ingly interconnected world—are, in our systems and the possibility of cooperation to interests, with nations that could become judgment, unacceptable. address global challenges from trade to envi- strategic adversaries, China and Russia. Over the course of these dialogues, ronmental degradation. In 1989 the Cold War Challenges for the decade ahead.—Develop- ended in a stunning, almost unimaginable Senator ROBERTS and I have both ments around the world pose threats to U.S. victory that erased this fixed point from the turned to the following words from the interests and present opportunities for ad- globe. Most of the coordinates by which vancing Americans’ well-being. Because the editor of the publication National In- Americans gained their bearings in the world terest, Owen Harries: United States is so predominant in the eco- have now been consigned to history’s nomic, technical, and military realms, many I advocate restraint because every domi- dustbin: the Berlin Wall, a divided Germany, politicians and pundits fall victim to a rhet- nant power in the last four centuries that the Iron Curtain, captive nations of the War- oric of illusion. They imagine that as the has not practiced it—that has been exces- saw Pact, communism on the march, and, fi- sole superpower, the U.S. can simply in- sively intrusive and demanding—has ulti- nally, the Soviet Union. Absent a compelling struct other nations to do this or stop that mately been confronted by a hostile coali- cause and understandable coordinates, Amer- and expect them to do it. But consider how tion of other powers. Americans may believe ica remains a superpower adrift. many American presidents have come and Opportunities missed and threats emerg- that their country, being exceptional, need gone since President Kennedy consigned ing.—Because of the absence of coherent, have no worries in this respect. I do not Fidel Castro to the dustbin of history. Stu- consistent, purposive U.S. leadership in the agree. It is not what Americans think of the dents of history will recognize a story-line in years since the Cold War, the U.S. is missing United States but what others think of it which a powerful state emerges (even if acci- one-time-only opportunities to advance that will decide the matter. dentally), engenders resentment (even when American interests and values. Fitful en- On his desk at the Pentagon when he it acts benevolently), succumbs to the arro- gagement actually invites the emergence of gance of power, and thus provokes new was Chairman of the Joint Chiefs of new threats, from nuclear weapons-usable threats, from individual acts of terrorism to Staff, Colin Powell kept a quote from material unaccounted for in Russia and as- hostile coalitions of states. Because Amer- the great Athenian historian sertive Chinese risk-taking, to the prolifera- ica’s resources are limited, U.S. foreign pol- Thucydides: tion of weapons of mass destruction (WMD) icy must be selective in choosing which and the unexpectedly rapid emergence of bal- Of all manifestations of power, restraint issues to address seriously. The proper basis impresses men most. listic missile threats. The foundation for sustainable American for making such judgments is a lean, hier- With great thanks to my distin- foreign policy.—The only sound foundation archical conception of what American na- guished colleague, Senator ROBERTS, for a sustainable American foreign policy is tional interests are and what they are not. and to the Senate, I conclude these dia- a clear sense of America’s national interests. Media attention to foreign affairs reflects logs on the global role of the United Only a foreign policy grounded in America’s access to vivid, compelling images on a screen, without much consideration of the States. I yield the floor. national interests can identify priorities for American engagement in the world. Only importance of the U.S. interest threatened. EXHIBIT 1 such a policy will allow America’s leaders to Graphic international problems like Bosnia COMMISSION ON AMERICA’S NATIONAL explain persuasively how and why American or Kosovo make consuming claims on Amer- INTERESTS—EXECUTIVE SUMMARY citizens should support expenditures of ican foreign policy to the neglect of issues of This report of the Commission on Amer- American treasure or blood. greater importance, like the rise of Chinese ica’s National Interests focuses on one core The hierarchy of American national inter- power, the unprecedented risks of nuclear issue: what are U.S. national interests ests.—Clarity about American national in- proliferation, the opportunity to increase today? The U.S. enters a new century as the terests demands that the current generation the openness of the international trading world’s most powerful nation, but too often of American leaders think harder about and financial systems, or the future of Mex- seems uncertain of its direction. We hope to international affairs than they have ever ico. encourage serious debate about what must been required to do. During the Cold War we Based on its assessment of specific threats become an essential foundation for a suc- had clearer, simpler answers to questions to and opportunities for U.S. national inter- cessful American foreign policy: America’s about American national interests. Today we ests in the final years of the century, the interests. We have sought to identify the must confront again the central questions: Commission has identified six cardinal chal- central questions about American interests. Which regions and issues should Americans lenges for the next U.S. president: Presuming no monopoly of wisdom, we nev- care about—for example, Bosnia, Rwanda, Strengthen strategic partnerships with ertheless state our own best answers to these Russia, Mexico, Africa, East Asia, or the Japan and the European allies despite the questions as clearly and precisely as we Persian Gulf? Which issues matter most—for absence of an overwhelming, immediate can—not abstractly or diplomatically. Clear example, opening markets for trade, invest- threat; assertions that some interests are more im- ment opportunities, weapons of mass de- Facilitate China’s entry onto the world portant than others will unavoidably give of- struction (WMD), international crime and stage without disruption; fense. We persist—with apologies—since our drugs, the environment, or human rights? Prevent loss of control of nuclear weapons aim is to catalyze debate about the most im- Why should Americans care? How much and nuclear weapons-usable materials, and portant U.S. national interests. Our six prin- should citizens be prepared to pay to address contain the proliferation of biological and cipal conclusions are these: these threats or seize these opportunities? chemical weapons; America advantaged.—Today the U.S. has The Commission has identified a hierarchy Prevent Russia’s reversion to greater power and fewer adversaries than of U.S. national interests: ‘‘vital interests,’’ authoritarianism or disintegration into ever before in American history. Relative to ‘‘extremely important interests,’’ ‘‘impor- chaos; any potential competitor, the U.S. is more tant interests,’’ and ‘‘less important or sec- Maintain the United States’ singular lead- powerful, more wealthy, and more influen- ondary interests.’’ This Report states our ership, military, and intelligence capabili- tial than any nation since the Roman em- own best judgment about which specific ties, and its international credibility; and October 3, 2000 CONGRESSIONAL RECORD — SENATE S9783 Marshal unprecedented economic, techno- hance the well-being of Americans in a free veto in the Security Council. We have logical, military, and political advantages to and secure nation. to be prepared to take care of our own shape a twenty-first century global system Important U.S. national interests are to: interests. I thank my colleagues for that promotes freedom, peace, and pros- 1. Discourage massive human rights viola- the dialog. perity for Americans, our allies, and the tions in foreign countries; world. 2. Promote pluralism, freedom, and democ- f For each of these challenges, and others, racy in strategically important states as ENERGY our stated hierarchy of U.S. national inter- much as is feasible without destabilization; ests provides coordinates by which to navi- 3. Prevent and, if possible at low cost, end Mr. SESSIONS. Mr. President, en- gate the uncertain, fast-changing inter- conflicts in strategically less significant geo- ergy prices are going up; gasoline national terrain in the decade ahead. graphic regions; prices are up. I doubt there are many SUMMARY OF U.S. NATIONAL INTERESTS 4. Protect the lives and well-being of Amer- families who do not spend $60 a month ican citizens who are targeted or taken hos- Vital on gasoline. Those who commute, those tage by terrorist organizations; who have children with vehicles, a hus- Vital national interests are conditions 5. Reduce the economic gap between rich band and wife working may have two that are strictly necessary to safeguard and and poor nations; enhance Americans’ survival and well-being 6. Prevent the nationalization of U.S.- or three vehicles per family and not be in a free and secure nation. owned assets abroad; wealthy. They may be paying $100 a Vital U.S. national interests are to: 7. Boost the domestic output of key stra- month or more for gasoline. If they 1. Prevent, deter, and reduce the threat of tegic industries and sectors; were paying $60 a month for gasoline 18 nuclear, biological, and chemical weapons 8. Maintain an edge in the international months ago, they are now paying over attacks on the United States or its military distribution of information to ensure that $90 a month. If they were paying $100 a forces abroad; American values continue to positively in- month last year, they are probably 2. Ensure U.S. allies’ survival and their ac- fluence the cultures of foreign nations; paying over $150 a month this year. tive cooperation with the U.S. in shaping an 9. Promote international environmental That is $50 a month or $30 a month, international system in which we can thrive; policies consistent with long-term ecological perhaps more in some families, with- 3. Prevent the emergence of hostile major requirements; and powers or failed states on U.S. borders; 10. Maximize U.S.-GNP growth from inter- drawn from the usable income of that 4. Ensure the viability and stability of national trade and investment. family, money with which they no major global systems (trade, financial mar- Instrumentally, the important U.S. na- longer can buy shoes, a new set of tires kets, supplies of energy, and the environ- tional interests are to maintain a strong UN for their car, to go on a vacation with ment); and and other regional and functional coopera- their children, take the kids to a ball 5. Establish productive relations, con- tive mechanisms. game, buy shoes for them to play soc- sistent with American national interests, Less Important or Secondary cer or basketball, baseball, or volley with nations that could become strategic ad- versaries, China and Russia. Less important or secondary national in- ball. That is $50 a month extra of Instrumentally, these vital interests will terests are not unimportant. They are im- aftertax money that American citizens be enhanced and protected by promoting sin- portant and desirable conditions, but ones had 15, 18 months ago and no longer gular U.S. leadership, military and intel- that have little direct impact on the ability have today. That is because the price ligence capabilities, credibility (including a of the U.S. government to safeguard and en- of energy has gone up. reputation for adherence to clear U.S. com- hance the well-being of Americans in a free In addition, businesses are facing mitments and even-handedness in dealing and secure nation. those same increases. I traveled a cou- with other states), and strengthening crit- Less important or secondary U.S. national interests include: ple of months ago with a full-time ical international institutions—particularly truck driver and his wife. I traveled the U.S. alliance system around the world. 1. Balancing bilateral trade deficits; 2. Enlarging democracy everywhere for its from north of Birmingham to Clanton Extremely Important own sake; to Montgomery and discussed with Extremely important national interests 3. Preserving the territorial integrity or them the problems they are facing. are conditions that, if compromised, would particular political constitution of other They are paying up to $800 to $1,000 a severely prejudice but not strictly imperil states everywhere; and month extra to operate their truck. the ability of the U.S. government to safe- 4. Enhancing exports of specific economic They try to pass it on, which increases guard and enhance the well-being of Ameri- sectors. the costs down the road, but they are cans in a free and secure nation. The PRESIDING OFFICER. The dis- Extremely important U.S. national inter- not able to pass it all on and it is re- ests are to: tinguished Senator from Alabama is ducing their standard of living. They 1. Prevent, deter, and reduce the threat of recognized. have, in fact, less money with which to the use of nuclear, biological, or chemical Mr. SESSIONS. Mr. President, I have go to the store and buy products. weapons anywhere; been fascinated and informed by the What does that ultimately mean? It 2. Prevent the regional proliferation of colloquy that has been ongoing be- means there are going to be fewer WMD and delivery systems; tween the Senator from Kansas and the widgets bought, there are going to be 3. Promote the acceptance of international Senator from Georgia. I have been hon- fewer shoes bought, there are going to rules of law and mechanisms for resolving or ored to serve on the Armed Services managing disputes peacefully; be fewer new cars bought, fewer new 4. Prevent the emergence of a regional Committee with the two of them. I houses bought and many other things hegemon in important regions, especially know they take these issues seriously, we would like to purchase. We will not the Persian Gulf; and it is, indeed, appropriate we begin be able to purchase those items be- 5. Promote the well-being of U.S. allies and to think through clearly what the role cause OPEC, through its price-gouging friends and protect them from external ag- of the United States is and what the cartel, has fixed the oil and gas prices gression; role of Congress is in establishing U.S. and driven them up to an extraor- 6. Promote democracy, prosperity, and sta- policy. bility in the Western Hemisphere; dinary degree. As a result, it is hurting 7. Prevent, manage, and, if possible at rea- I thank them for those observations. us. We know this. We know the econ- sonable cost, end major conflicts in impor- They are very valuable. I agree with omy appears to have some slowing. We tant geographic regions; them that we need to involve the know that profit margins across the 8. Maintain a lead in key military-related American people in this. The great board have been shrinking signifi- and other strategic technologies, particu- American experiment that has guided cantly, and we know that higher en- larly information systems; us so far has allowed the people to rule. ergy costs are a big reason for that. 9. Prevent massive, uncontrolled immigra- We do not need to do it under the table I say that because we are talking tion across U.S. borders; without full and open debate. 10. Suppress terrorism (especially state- about some very big issues. If you do sponsored terrorism), transnational crime, I strongly believe we must not as a not have money to purchase, let’s say and drug trafficking; and nation abdicate our ability to act uni- you purchase 8 things this month in- 11. Prevent genocide. laterally when our national interest is stead of what you would normally pur- Important at stake, or else why have we invested chase, 10, there is somebody who would Important national interests are condi- so greatly to establish this magnificent have made those other 2 items, some- tions that, if compromised, would have military? We cannot rely on a majority body who would have sold those other 2 major negative consequences for the ability vote of the U.N. We cannot rely on the items; they may not be able to con- of the U.S. government to safeguard and en- fact that we may override or avoid a tinue to do that. What does that do to S9784 CONGRESSIONAL RECORD — SENATE October 3, 2000 the producing business? It puts stress can easily store in the Nevada desert. where the revenue comes to Wash- on them. It can cool off this robust Oh, no, President Clinton and Vice ington so it at least can be spent in the economy with which we have been President GORE vetoed the ability for United States, it is, in effect, a 50-, 60- blessed for quite a number of years. us to store that waste in the Nevada cent tax that goes to Saudi Arabia, Kofi Annan, the Secretary General of desert, therefore, helping shut down Venezuela, and the Middle East. The the U.N., wrote an editorial recently our nuclear energy. We have not OPEC cartel gets our tax. They are which I was pleased to read. He pointed brought on a nuclear plant in over 20 taxing our wealth and sending it out how it hurts poor nations more years in this country. abroad. than wealthy nations, but it hurts We are denying ourselves that capac- This has the capacity to kill the eco- wealthy nations, too. Wealthy nations ity to produce energy. There are huge nomic growth this Nation has been ex- are hurt when poor nations do not have reserves of natural gas in the Rocky periencing. It has the capacity to drain money to buy products from us. We sell Mountain areas. Natural gas is the our wealth to the degree that this all over the world. Whatever cools off cleanest burning of all our fossil fuels. economy could slow down. It could the entire world economy cools off the All our electric-generating plants even go into recession because we have American economy and jeopardizes today are natural gas plants. We are done nothing to deal with it. We have jobs. hitting a crisis in the production of done nothing. The only thing, in the What caused us to come to this natural gas. They refuse to allow those long run, that we can do is to make point? I say with confidence that it is Federal lands in the Rocky Mountain sure we produce what we have. the Clinton-Gore policies, primarily areas, almost all of it owned by the We have virtually unlimited reserves Vice President AL GORE’s energy poli- Federal Government, to produce nat- of natural gas and oil in the United cies, that have been involved here. The ural gas, which isn’t a dangerous fuel States—certainly for decades to come. simple fact is that those policies are to produce. It doesn’t pour oil all out There are myths that we do not have driven by and motivated at the deepest on the ground; it is an evaporative gas. enough. We have large reserves. We level by his adoption of a radical, no- It is safe to produce. Certainly we should have been producing those more growth agenda that is playing in his could do that. effectively. But the policies of this ad- book. He set it out some years ago. They are opposed to drilling offshore. ministration have been to reduce our People are astounded when they read In fact, Vice President GORE, during production. that book because he is deeply reveal- his campaigning in New Hampshire, And as night follows day, the price is ing of a philosophy that we ought to promised not only to not approve any going to go up. It threatens not only reduce spending on energy and that additional offshore drilling of natural the pocketbook of a mother who is try- will somehow drive up costs and we gas but to consider rolling back exist- ing to now get by—she was paying $100 will use less oil, less gas, we will ride ing leases that have already been a month for the family’s gasoline; now bicycles and use solar cells, and that is issued. she is paying $150 a month for the fam- how we are going to meet our national How are we going to meet our energy ily’s gasoline. She cannot buy things at energy policy. needs for natural gas if we cannot the store she used to buy. And the pro- The trouble is that solar cells cost 4, produce it? There are many other areas ducers of those products are now going 5, 10 times as much as fossil fuels do to where, through regulation, we basi- to have to lay off workers because peo- produce energy. Who is going to pay for cally shut off coal as a viable option ple are not buying those products at that? Working Americans are going to for expanding our energy needs. In fact, the rate they were previously buying pay for that while some elite people even though we are much more effi- them. think it is a cool idea and for which cient than we have ever been with elec- This is not an itty-bitty issue. This is they are not paying the price. They can tric energy, we need more. The projec- a tremendous issue for our country. I afford to pay it perhaps. We are into tions are that we will have a substan- hope it will be discussed tonight in the that mood now. This radical agenda is tial increase in demand even though we debate. I hope it will be made a part of demonstrated by the policies that have are improving our efficiency steadily. this campaign. I believe, with an abso- been carried out systematically since So that is the problem we are facing. lute conviction, that if we allow these this administration took office. The problem is that when OPEC real- international greedy producing nations It has been steady, and it has been ized our demand was increasing, and to jerk us around, to take money from regular. They have not said our policy the world demand was increasing, and the average mother and father and is to raise prices. They are too clever our own domestic production was de- working American when they go to the for that. They are not going to allow creasing 14 percent, while demand was gas pump, having their money sent to that spin to get about. What have they going up 18 to 20 percent, they were those nations, they can hurt us badly. done against the consistent opposition able to reduce production, force the It hurts a lot of people. of Members in this body who have price up to exorbitant levels, and make I pumped gas a few months ago and warned over and over that reducing themselves rich. In fact, it was a polit- washed people’s windshields. I talked production of American fuels was going ical decision by governmental leaders to them about the costs they were fac- to lead us to a crisis? What have they to force up the price. It was not even a ing. I talked to a young lady in her done? They have opposed drilling in the free market decision. It was a political early twenties. She was going to col- ANWR region of Alaska which has huge decision by the leaders of these oil-pro- lege 3 days a week. The college she at- reserves equal to 30 years of the pro- ducing nations because of our failure to tended was 30 miles up the road. She duction in Saudi Arabia. This one little produce energy and because we have talked about how much her gas bill area amounts to the size of Dulles Air- become dependent on their oil. So they was. She was trying to save money for port. It is a very small area with huge have been able to demand what they tuition. Her car was not a new car. She reserves. They vetoed legislation that want to in price. Our politicians lost to said she would like to have a new car, would have allowed us to produce oil their politicians. Their politicians beat but she could not afford it. That extra and gas to help meet our needs. Over our politicians. cost was coming out of her pocket. vigorous debate in this Senate and a And who is paying the price? The This is a real issue. It hurts our fami- strong majority vote, it was vetoed by American citizen, when he goes to the lies. They have less money in their the Clinton-Gore administration. gas pump, when he buys his heating pocket and in the family budget be- What else? They steadfastly oppose oil, when he goes and buys a product. It cause it has to be spent on gasoline. It nuclear power. France has gone from 60 is more expensive today to buy that is hurting businesses. Their profits are percent of their power nuclear to 80 product than it was before because of down. Home building is down. percent. Industrialized nations realize increased gasoline prices in the whole What will happen in the future? I it is the cleanest, safest of all sources production system. That is what has don’t know. But if we do not get in this of energy with unlimited capacity to happened. We have been taken to the ballgame, if we do not challenge OPEC produce electricity, with no air pollu- cleaners. To me it is as if we put a tax and figure out a way to break that car- tion—virtually no air pollution, and on the gasoline, but instead of taxing tel, and if we do not increase our own only a small amount of waste that we gasoline 50, 60 cents a gallon extra production of energy, we will have October 3, 2000 CONGRESSIONAL RECORD — SENATE S9785 what we have had numerous times be- date, the time for the two leaders be NOMINATIONS fore; and that is, a recession driven by reserved for their use later in the day, increased energy costs. What a tragedy and the Senate then resume consider- Executive nominations received by that will be. It should not happen. ation of the conference report to ac- the Senate October 3, 2000: Our projections are and our needs as company H.R. 4578, the Interior appro- DEPARTMENT OF STATE a nation are to continue this pros- priations bill. RICHARD A. MESERVE, OF VIRGINIA, TO BE AN ALTER- perity, to continue the surplus we have The PRESIDING OFFICER. Without NATIVE REPRESENTATIVE OF THE UNITED STATES OF been able to generate in this Govern- objection, it is so ordered. AMERICA TO THE FORTY-FOURTH SESSION OF THE GEN- f ERAL CONFERENCE OF THE INTERNATIONAL ATOMIC EN- ment, and to pay down our debt and to ERGY AGENCY. be able to do some things we wish we PROGRAM could have done before. This is a glo- NATIONAL COMMISSION ON LIBRARIES AND rious time for us. Mr. ROBERTS. Mr. President, for the INFORMATION SCIENCE I believe we have to take strong ac- information of all Senators, the Senate PHILLIP N. BREDESEN, OF TENNESSEE, TO BE A MEM- will immediately resume the Interior BER OF THE NATIONAL COMMISSION ON LIBRARIES AND tion. I have been frustrated that this INFORMATION SCIENCE FOR A TERM EXPIRING JULY 19, appropriations conference report at 9:30 administration remains steadfast in 2005, VICE WALTER ANDERSON, TERM EXPIRED. a.m. tomorrow morning. The Senate blocking, time and again, any step to will remain on the conference report THE JUDICIARY increase our production of energy. And until it is disposed of. It is hoped that MELVIN C. HALL, OF OKLAHOMA, TO BE UNITED that has no more consequence but one: STATES DISTRICT JUDGE FOR THE WESTERN DISTRICT a final vote will occur no later than to- OF OKLAHOMA VICE RALPH G. THOMPSON, RETIRED. When you reduce production, it will morrow afternoon. The Senate could drive up costs. consider any other appropriations con- f I thank the Chair and, again, express ference reports as well as the con- my appreciation for his fine remarks tinuing resolution providing for the on national defense. continued operations of the Federal CONFIRMATIONS Mr. President, I yield the floor. Government until October 14, 2000. f Executive nominations confirmed by f the Senate October 3, 2000: ORDERS FOR WEDNESDAY, RECESS UNTIL 9:30 A.M. THE JUDICIARY OCTOBER 4, 2000 TOMORROW MICHAEL J. REAGAN, OF ILLINOIS, TO BE UNITED Mr. ROBERTS. Mr. President, I ask Mr. ROBERTS. Mr. President, if STATES DISTRICT JUDGE FOR THE SOUTHERN DISTRICT unanimous consent that when the Sen- there is no further business to come be- OF ILLINOIS. SUSAN RITCHIE BOLTON, OF ARIZONA, TO BE UNITED ate completes its business today, it re- fore the Senate, I now ask unanimous STATES DISTRICT JUDGE FOR THE DISTRICT OF ARI- cess until the hour of 9:30 a.m. on consent that the Senate stand in recess ZONA. MARY H. MURGUIA, OF ARIZONA, TO BE UNITED Wednesday, October 4. I further ask under the previous order. STATES DISTRICT JUDGE FOR THE DISTRICT OF ARI- unanimous consent that on Wednesday, There being no objection, the Senate, ZONA. JAMES A. TEILBORG, OF ARIZONA, TO BE UNITED immediately following the prayer, the at 7:49 p.m., recessed until Wednesday, STATES DISTRICT JUDGE FOR THE DISTRICT OF ARI- Journal of proceedings be approved to October 4, 2000, at 9:30 a.m. ZONA.