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

Vol. 145 WASHINGTON, TUESDAY, JANUARY 19, 1999 No. 8 Senate STATEMENTS ON INTRODUCED of foreign dumping and subsidization. ther erect barriers to keep U.S. steel BILLS AND JOINT RESOLUTIONS These foreign practices have reduced out, or subsidize their exports to dis- (Continued) the ability of our injured domestic in- tort prices. That’s why we have trade dustries to reinvest in plant, equip- laws designed to promote fair trade. By Mr. DEWINE (for himself, Mr. ment, people, R&D, technology or to However, it’s clear that our current HOLLINGS, Mr. ABRAHAM, Mr. maintain or restore health care and trade policies aren’t working. Current SANTORUM, Mr. SPECTER, Mr. pension benefits. The end result is this: law did not deter foreign steel produc- BYRD, Mr. HUTCHINSON, and Mr. continued dumping or subsidization ers from dumping their products in our VOINOVICH): jeopardizes renewed investment and country. These foreign producers have S. 61. A bill to amend the Tariff Act prevents additional reinvestment from done the math. They have made a cal- of 1930 to eliminate disincentives to being made. culated decision that the risk of duties fair trade conditions; to the Committee The current steel dumping crisis is is a price they are willing to pay in re- on Finance. the latest sobering example of why our turn for the higher global market share THE CONTINUED DUMPING OR SUBSIDIZATION legislation, among others, is needed to they have gained by chipping away at OFFSET ACT better enforce fair trade. Because of the size and strength of our nation’s Mr. DEWINE. Mr. President, today I massive dumping, steel imports are at steel industry. join with Senators ABRAHAM, an all-time high. According to the It’s time we impose a heavier price SANTORUM, SPECTER, HOLLINGS, BYRD, American Iron and Steel Institute, 4.1 on dumping and subsidization. The HUTCHINSON and others to introduce the Continued Dumping or Subsidy Off- net tons of steel were imported in the Continued Dumping or Subsidization set Act. This legislation is designed to month of October—that’s the second Offset Act would accomplish this goal. ensure that our domestic producers can highest monthly total ever, and is 56% It would transfer the duties and fines compete freely and fairly in global higher than the previous year. imposed on foreign producers directly markets. This bill is a top priority for This surge in imports is having a di- to their U.S. competitors. Under our me and my fellow cosponsors—not only rect impact on our own steel industry. bill, foreign steel producers would get a because we believe it is good policy, In November, U.S. steel mills shipped double hit from dumping: they would but also because it is needed to respond nearly 7.4 million net tons of steel in have to pay a duty, and in turn, see to the current import dumping crisis in November of last year—more than one that duty go directly to aid U.S. steel our steel industry. million tons below what was shipped producers. As my colleagues know, the Tariff one year earlier. We have seen U.S. In order to counter the adverse ef- Act of 1930 gives the President the au- steel’s industrial utilization rate fall fects of foreign dumping and subsidiza- thority to impose duties and fines on from 93.1% in March of 1998 to 73.9% in tion on U.S. industries, Congress imports that are being dumped in U.S. January of 1999. And most troubling of should pass this bipartisan bill. markets, or subsidized by foreign gov- all, approximately 10,000 jobs have been The steel crisis also has amplified the ernments. Our bill would take the 1930 lost in our steel industry since last need for additional improvements in Act one step further. Currently, reve- year. More layoffs are certain. Whether our trade laws, as well as tougher en- nues raised through import duties and these jobs will ever be restored is un- forcement of existing laws. Last Octo- fines go to the U.S. Treasury. Under certain. This is a genuine crisis for the ber, many of us in Congress came to- our bill, duties and fines would be communities in the Ohio River Valley gether to offer an early New Year’s res- transferred to injured U.S. companies and in other communities across the olution for 1999: to stand up for steel. as compensation for damages caused by country. Any crisis requires leadership. That’s dumping or subsidization. This is not a case of being on the why Congress asked the President to We believe this extra step is nec- wrong side of a highly competitive make a New Year’s Resolution of his essary. Current law simply has not market. Today’s U.S. steel industry is own—one that would honor a pledge he been strong enough to deter unfair a lean, efficient industry—a world lead- made in 1992 to strongly enforce U.S. trading practices. In some cases, for- er thanks to restructuring and millions antidumping laws. Specifically, Con- eign producers are willing to risk the of dollars in modernization. U.S. steel- gress asked the President for an action threat of paying U.S. antidumping and workers are the best and most produc- plan no later than January 5th—a plan countervailing duties out of the profits tive in the world. In fact, America’s that would end the distortion and dis- of dumping. workers devote the fewest manpower ruption in global steel markets, as well Current law also does not contain a hours per ton of steel. as the disappearance of jobs and oppor- mechanism to help injured U.S. indus- Simply being the best is not enough tunity in U.S. steel plants. It was a call tries recover from the harmful effects against foreign governments that ei- for presidential leadership.

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

S497

. S498 CONGRESSIONAL RECORD — SENATE January 19, 1999 On January 8th, the President re- Ultimately, we cannot achieve free an antidumping duty order, a finding under leased a plan that fell far short of what and fair markets on a global scale un- the Antidumping Act of 1921, or a counter- we hoped. It was a plan that showed a less our laws work to encourage all vailing duty order has been entered, and reluctance to fully utilize our laws to competitors to play by the rules. And ‘‘(B) remains in operation. ensure free and fair trade. It did not ultimately, congressional action alone Companies, businesses, or persons that have recommend any trade legislation to is no substitute for presidential leader- ceased the production of the product covered by the order or finding or who have been ac- better protect U.S. industry from ship. That’s why Congress and the quired by a company or business that is re- dumping. As a result, it sends a dan- American steel community need to lated to a company that opposed the inves- gerous signal to foreign governments keep the pressure on. In fact, thou- tigation shall not be an affected domestic that dumping will not meet with a sands of steel workers from the Ohio producer. swift response from the United States. Valley are arriving in our nation’s cap- ‘‘(2) COMMISSIONER.—The term ‘Commis- I am concerned the President has not itol in a massive call for presidential sioner’ means the Commissioner of Customs. fully grasped the magnitude of this leadership. It’s time our President took ‘‘(3) COMMISSION.—The term ‘Commission’ problem. In the past few months, I a stand for fair trade. It’s time for our means the United States International Trade Commission. have visited with Ohio Valley steel pro- President to stand up for steel. ‘‘(4) QUALIFYING EXPENDITURE.—The term ducers and workers, including a num- Mr. President, I ask unanimous con- ‘qualifying expenditure’ means an expendi- ber of the hundreds laid off because of sent that the text of the bill be printed ture incurred after the issuance of the anti- foreign dumping. Their message was in the RECORD. dumping duty finding or order or counter- the same: the surge in steel imports There being no objection, the bill was vailing duty order in any of the following represents a crisis of historic propor- ordered to be printed in the RECORD, as categories: tions. follows: ‘‘(A) Plant. ‘‘(B) Equipment. S. 61 The root of the current import crisis is the ‘‘(C) Research and development. financial distress that plagues Asia and Rus- Be it enacted by the Senate and House of Rep- ‘‘(D) Personnel training. sia, which has created a worldwide over- resentatives of the United States of America in ‘‘(E) Acquisition of technology. supply of steel. While foreign consumption of Congress assembled, ‘‘(F) Health care benefits to employees steel has nearly dried up, America’s strong SECTION 1. SHORT TITLE. paid for by the employer. economy and open markets have made the This Act may be cited as the ‘‘Continued ‘‘(G) Pension benefits to employees paid United States a prime target for exporters. Dumping and Subsidy Offset Act of 1999’’. for by the employer. We are dedicated to assisting these econo- SEC. 2. FINDINGS OF CONGRESS. ‘‘(H) Environmental equipment, training, mies—so we can avoid a global downturn. Congress makes the following findings: or technology. But turning a blind eye toward our steel (1) Consistent with the rights of the United ‘‘(I) Acquisition of raw materials and other workers is the wrong way to do it. We simply States under the World Trade Organization, inputs. cannot afford to sacrifice the US steel indus- injurious dumping is to be condemned and ‘‘(J) Borrowed working capital or other try and thousands of American jobs in a des- actionable subsidies which cause injury to funds needed to maintain production. perate attempt to prop up faulty foreign domestic industries must be effectively neu- ‘‘(5) RELATED TO.—A company, business, or economies. This approach simply will not tralized. person shall be considered to be ‘related to’ work. (2) United States unfair trade laws have as another company, business, or person if— Although the Commerce Department their purpose the restoration of conditions of ‘‘(A) the company, business, or person di- has initiated an investigation that fair trade so that jobs and investment that rectly or indirectly controls or is controlled could result in duties imposed against should be in the United States are not lost by the other company, business, or person, foreign steel, the President could pur- through the false market signals. ‘‘(B) a third party directly or indirectly sue a number of options to reduce steel (3) The continued dumping or subsidization controls both companies, businesses, or per- of imported products after the issuance of sons, imports: He could begin serious and ag- antidumping orders or findings or counter- ‘‘(C) both companies, businesses, or persons gressive bilateral negotiations with vailing duty orders can frustrate the reme- directly or indirectly control a third party countries that dump steel; initiate a dial purpose of the laws by preventing mar- and there is reason to believe that the rela- ‘‘201’’ petition with the International ket prices from returning to fair levels. tionship causes the first company, business, Trade Commission if he believes steel (4) Where dumping or subsidization contin- or persons to act differently than a non- imports pose a substantial threat to ues, domestic producers will be reluctant to related party. domestic industry; or take unilateral reinvest or rehire and may be unable to For purposes of this paragraph, a party shall trade action, including quotas and tar- maintain pension and health care benefits be considered to directly or indirectly con- that conditions of fair trade would permit. trol another party if the party is legally or iffs, under the International Economic Similarly, small businesses and American Emergency Powers Act. operationally in a position to exercise re- farmers and ranchers may be unable to pay straint or direction over the other party. The President’s plan does not take down accumulated debt, to obtain working any of these options. Instead, it treats capital, or to otherwise remain viable. ‘‘(c) DISTRIBUTION PROCEDURES.—The Com- the symptoms of dumping—declining (5) United States trade laws should be missioner shall prescribe procedures for dis- profits and unemployment—rather strengthened to see that the remedial pur- tribution of the continued dumping or sub- pose of those laws is achieved. sidies offset required by this section. Such than attack the disease itself. The distribution shall be made not later than 60 damage from this disease has already SEC. 3. AMENDMENTS TO THE TARIFF ACT OF 1930. days after the first day of a fiscal year from been done. Absent tough action to ad- duties assessed during the preceding fiscal (a) IN GENERAL.—Title VII of the Tariff Act dress this dumping directly makes it of 1930 (19 U.S.C. 1671 et seq.) is amended by year. more difficult for U.S. producers to re- inserting after section 753 following new sec- ‘‘(d) PARTIES ELIGIBLE FOR DISTRIBUTION OF gain their declining market share, and tion: ANTIDUMPING AND COUNTERVAILING DUTIES most important, to restore the jobs ‘‘SEC. 754. CONTINUED DUMPING AND SUBSIDY ASSESSED.— that have been lost. OFFSET. ‘‘(1) LIST OF AFFECTED DOMESTIC PRODUC- Congress can insist on tough action ‘‘(a) IN GENERAL.—Duties assessed pursu- ERS.—The Commission shall forward to the by the President by passing legislation ant to a countervailing duty order, an anti- Commissioner within 60 days after the effec- that will further discourage unfair dumping duty order, or a finding under the tive date of this section in the case of orders Antidumping Act of 1921 shall be distributed or findings in effect on such effective date, trade practices. Passing the Continued on an annual basis under this section to the or in any other case, within 60 days after the Dumping or Subsidization Offset Act affected domestic producers for qualifying date an antidumping or countervailing duty would be a good start. In addition, I expenditures. Such distribution shall be order or finding is issued, a list of petitioners will be joining with Senator ARLEN known as the ‘continued dumping and sub- and persons with respect to each order and SPECTER of Pennsylvania to introduce sidy offset’. finding and a list of persons that indicate legislation that would lower the statu- ‘‘(d) DEFINITIONS.—As used in this section: support of the petition by letter or through tory threshold for the International ‘‘(1) AFFECTED DOMESTIC PRODUCER.—The questionnaire response. In those cases in Trade Commission (ITC) to find injury term ‘affected domestic producer’ means any which a determination of injury was not re- manufacturer, producer, farmer, rancher, or quired or the Commission’s records do not caused by imports and establish a steel worker representative (including associa- permit an identification of those in support import permit and licensing program, tions of such persons) that— of a petition, the Commission shall consult allowing domestic industry access to ‘‘(A) was a petitioner or interested party in with the administering authority to deter- critical import data more quickly. support of the petition with respect to which mine the identity of the petitioner and those January 19, 1999 CONGRESSIONAL RECORD — SENATE S499 domestic parties who have entered appear- to all antidumping and countervailing duty proceeds from the sale of their farms ances during administrative reviews con- assessments made on or after October 1, 1996. into a tax-deferred retirement account. ducted by the administering authority under Instead of paying a large lump-sum section 751. By Mr. KOHL: capital gains tax at the point of sale, ‘‘(2) PUBLICATION OF LIST; CERTIFICATION.— S. 62. A bill to amend the Internal the income from the sale of a farm The Commissioner shall publish in the Fed- Revenue Code of 1986 to provide for the eral Register at least 30 days before the dis- would be taxed only as it is withdrawn rollover of gain from the sale of farm from the retirement account. Such a tribution of a continued dumping and sub- assets into an individual retirement ac- sidy offset, a notice of intention to distrib- change in method of taxation would count; to the Committee on Finance. ute the offset and the list of affected domes- help prevent the financial distress that tic producers potentially eligible for the dis- THE FAMILY FARM RETIREMENT EQUITY ACT OF many farmers now face upon retire- tribution based on the list obtained from the 1999 ment. Commission under paragraph (1). The Com- Second, my legislation would address missioner shall request a certification from By Mr. KOHL: the diminishing interest of our younger each potentially eligible affected domestic S. 63. A bill to amend the Internal rural citizens in continuing in farming. producer— Revenue Code of 1986 to provide a cred- ‘‘(A) that the producer desires to receive a Because this legislation will facilitate distribution; it against tax for employers who pro- the transition of our older farmers into ‘‘(B) that the producer is eligible to receive vide child care assistance for depend- a successful retirement, the Family the distribution as an affected domestic pro- ents of their employees, and for other Farm Retirement Equity Act will also ducer; and purposes; to the Committee on Fi- pave the way for a more graceful tran- ‘‘(C) the qualifying expenditures incurred nance. sition of our younger farmers toward by the producer since the issuance of the THE CHILD CARE INFRASTRUCTURE ACT farm ownership. While low prices and order or finding for which distribution under Mr. KOHL. Mr. President, I rise low profits in farming will continue to this section has not previously been made. today to introduce the Family Farm take their toll on our younger farmers, ‘‘(3) DISTRIBUTION OF FUNDS.—The Commis- sioner shall distribute all funds (including Retirement Equity Act, a bill to help I believe that my proposal will be one all interest earned on the funds) from as- improve the retirement security of our tool we can use to make farming more sessed duties received in the preceding fiscal nation’s farmers. viable for the next generation. year to affected domestic producers based on As we begin the 106th Congress, we In past Congresses, this proposal has the certifications described in paragraph (2). can anticipate legislative action to enjoyed the support of farmers and The distributions shall be made on a pro rata strengthen retirement security and to farm organizations throughout the basis based on new and remaining qualifying boost individual savings on behalf of country and the endorsement of the expenditures. all Americans. With good reason, these American Farm Bureau Federation, ‘‘(e) SPECIAL ACCOUNTS.— ‘‘(1) ESTABLISHMENTS.—Within 14 days issues have risen to the top of the na- the American Sheep Industry Associa- after the effective date of this section, with tion’s agenda. Americans are living tion, the American Sugar Beet Associa- respect to antidumping duty orders and find- longer and changing jobs more often. tion, the National Association of ings and countervailing duty orders in effect Medical costs are rising and Wheat Growers, the National Cattle- on the effective date of this section, and demogarphic trends are undermining man’s Beef Association, the National within 14 days after the date an antidumping the long-term viability of our social se- Corn Growers Association, National duty order or finding or countervailing duty curity system. Comprehensive planning Pork Producers Council, and the order issued after the effective date takes ef- Southwester Peanut Growers Associa- fect, the Commissioner shall establish in the for the many years Americans are Treasury of the United States a special ac- often able to enjoy in retirement is tion. In addition, a modified version of count with respect to each such order or now more important than ever. this legislation was included in the finding. We took some steps to address retire- Targeted Investment Incentive and ‘‘(2) DEPOSITS INTO ACCOUNTS.—The Com- ment security in the 105th Congress, Economic Growth Act of 1997, as intro- missioner shall deposit into the special ac- but the job is far from accomplished. duced by Minority Leader DASCHLE and counts, all antidumping or countervailing We must be vigilant in acting to re- other Senators. I look forward to work- duties (including interest earned on such du- form social security on behalf of all ing with these groups and my col- ties) that are assessed after the effective Americans and in addressing the leagues again this Congress to act on date of this section under the antidumping order or finding or the countervailing duty unique retirement needs of individual this important legislation as swiftly as order with respect to which the account was groups of Americans. The legislation I possible. established. introduce today attempts to act on be- In addition, I am introducing the ‘‘(3) TIME AND MANNER OF DISTRIBUTIONS.— half of one such group, a group at the Child Care Infrastructure Act, a bill to Consistent with the requirements of sub- heart of our American traditions, the provide a tax credit for businesses that sections (c) and (d), the Commissioner shall family farmer. create child care opportunities for by regulation prescribe the time and manner As many of my colleagues know, their employees. While I will have in which distribution of the funds in a spe- farming is a highly capital-intensive much more to say about this important cial account shall made. business. To the extent that the aver- legislation at a later date, I did want ‘‘(4) TERMINATION.—A special account shall terminate after— age farmer reaps any profits from his to put it in the hopper today. Provid- ‘‘(a) the order or finding with respect to or her farming operation, much of that ing quality child care is and should be which the account was established has ter- income is directly reinvested into the at the center of our agenda for the minated; farm. Rarely are there opportunities 106th Congress. My proposal is a low- ‘‘(B) all entries relating to the order or for farmers to put money aside in indi- cost approach to address this issue by finding are liquidated and duties assessed vidual retirement accounts. In addi- involving the private sector and has re- collected; tion, as self-employed business people, ceived praise from businesses, parents, ‘‘(C) the Commissioner has provided notice and day care workers alike. and a final opportunity to obtain distribu- farmers do not have access to the pen- tion pursuant to subsection (c); and sion or retirement funds that many I ask unanimous consent that the ‘‘(D) 90 days has elapsed from the date of Americans enjoy. When the time full text of these bills be printed in the the notice described in subparagraph (C). comes, farmers tend to rely on the sale RECORD. Amounts not claimed within 90 days of the of their accumulated capital assets, There being no objection, the bills date of the notice described in subparagraph such as real estate, livestock, and ma- were ordered to be printed in the (C), shall be deposited into the general fund chinery, in order to provide the income RECORD, as follows: of the Treasury.’’. to sustain them during retirement. S. 62 (b) CONFORMING AMENDMENT.—The table of However, all too often, farmers are Be it enacted by the Senate and House of Rep- contents for title VII of the Tariff Act of 1930 resentatives of the United States of America in is amended by inserting the following new finding that the lump-sum payments of capital gains taxes levied on those as- Congress assembled, item after the item relating to section 753: SECTION 1. SHORT TITLE; REFERENCE TO INTER- ‘‘Sec. 754. Continued dumping and subsidy sets leave little for retirement. NAL REVENUE CODE. offset.’’. To alleviate this predicament, my (a) SHORT TITLE.—This Act may be cited as (c) EFFECTIVE DATE.—The amendments legislation would provide retiring the ‘‘Family Farm Retirement Equity Act of made by this section shall apply with respect farmers the opportunity to rollover the 1999’’. S500 CONGRESSIONAL RECORD — SENATE January 19, 1999

(b) REFERENCE TO INTERNAL REVENUE CODE for such taxable year (not including exten- count (within the meaning of section 1034A), OF 1986.—Except as otherwise expressly pro- sions thereof). or’’. vided, whenever in this Act an amendment ‘‘(d) QUALIFIED NET FARM GAIN; ETC.—For (B) The heading for section 4973 is amended or repeal is expressed in terms of an amend- purposes of this section— by inserting ‘‘ASSET ROLLOVER AC- ment to, or repeal of, a section or other pro- ‘‘(1) QUALIFIED NET FARM GAIN.—The term COUNTS,’’ after ‘‘CONTRACTS’’. vision, the reference shall be considered to ‘qualified net farm gain’ means the lesser (C) The table of sections for chapter 43 is be made to a section or other provision of of— amended by inserting ‘‘asset rollover ac- the Internal Revenue Code of 1986. ‘‘(A) the net capital gain of the taxpayer counts,’’ after ‘‘contracts’’ in the item relat- SEC. 2. ROLLOVER OF GAIN FROM SALE OF FARM for the taxable year, or ing to section 4973. ASSETS TO INDIVIDUAL RETIRE- ‘‘(B) the net capital gain for the taxable (d) TECHNICAL AMENDMENTS.— MENT PLANS. year determined by only taking into account (1) Section 408(a)(1) (defining individual re- (a) IN GENERAL.—Part III of subchapter O gain (or loss) in connection with dispositions tirement account) is amended by inserting of chapter 1 (relating to common nontaxable of qualified farm assets. ‘‘or a qualified contribution under section exchanges) is amended by inserting after sec- ‘‘(2) QUALIFIED FARM ASSET.—The term 1034A,’’ before ‘‘no contribution’’. tion 1034 the following new section: ‘qualified farm asset’ means an asset used by (2) Section 408(d)(5)(A) is amended by in- serting ‘‘or qualified contributions under ‘‘SEC. 1034A. ROLLOVER OF GAIN ON SALE OF a qualified farmer in the active conduct of FARM ASSETS INTO ASSET ROLL- the trade or business of farming (as defined section 1034A’’ after ‘‘rollover contribu- OVER ACCOUNT. in section 2032A(e)). tions’’. ‘‘(a) NONRECOGNITION OF GAIN.—Subject to ‘‘(3) QUALIFIED FARMER.— (3)(A) Section 6693(b)(1)(A) is amended by the limits of subsection (c), if for any taxable ‘‘(A) IN GENERAL.—The term ‘qualified inserting ‘‘or 1034A(f)(1)’’ after ‘‘408(o)(4)’’. year a taxpayer has qualified net farm gain farmer’ means a taxpayer who— (B) Section 6693(b)(2) is amended by insert- from the sale of qualified farm assets, then, ‘‘(i) during the 5-year period ending on the ing ‘‘or 1034A(f)(1)’’ after ‘‘408(o)(4)’’. at the election of the taxpayer, such gain date of the disposition of a qualified farm (4) The table of sections for part III of sub- shall be recognized only to the extent it ex- asset materially participated in the trade or chapter O of chapter 1 is amended by insert- ceeds the contributions to 1 or more asset business of farming, and ing after the item relating to section 1034 the rollover accounts of the taxpayer for the tax- ‘‘(ii) owned (or who with the taxpayer’s following new item: able year in which such sale occurs. spouse owned) 50 percent or more of such ‘‘Sec. 1034A. Rollover of gain on sale of farm ‘‘(b) ASSET ROLLOVER ACCOUNT.— trade or business during such 5-year period. assets into asset rollover ac- ‘‘(1) GENERAL RULE.—Except as provided in ‘‘(B) MATERIAL PARTICIPATION.—For pur- count.’’. this section, an asset rollover account shall poses of this paragraph, a taxpayer shall be (e) EFFECTIVE DATE.—The amendments be treated for purposes of this title in the treated as materially participating in a made by this section shall apply to sales and same manner as an individual retirement trade or business if the taxpayer meets the exchanges after the date of the enactment of plan. requirements of section 2032A(e)(6). this Act. ‘‘(2) ASSET ROLLOVER ACCOUNT.—For pur- ‘‘(4) ROLLOVER CONTRIBUTIONS.—Rollover poses of this title, the term ‘asset rollover contributions to an asset rollover account S. 63 account’ means an individual retirement may be made only from other asset rollover Be it enacted by the Senate and House of Rep- plan which is designated at the time of the accounts. resentatives of the United States of America in establishment of the plan as an asset roll- ‘‘(e) DISTRIBUTION RULES.—For purposes of Congress assembled, over account. Such designation shall be this title, the rules of paragraphs (1) and (2) SECTION 1. SHORT TITLE. made in such manner as the Secretary may of section 408(d) shall apply to any distribu- This Act may be cited as the ‘‘Child Care prescribe. tion from an asset rollover account. Infrastructure Act of 1999’’. ‘‘(c) CONTRIBUTION RULES.— ‘‘(f) INDIVIDUAL REQUIRED TO REPORT SEC. 2. ALLOWANCE OF CREDIT FOR EMPLOYER ‘‘(1) NO DEDUCTION ALLOWED.—No deduction QUALIFIED CONTRIBUTIONS.— EXPENSES FOR CHILD CARE ASSIST- shall be allowed under section 219 for a con- ‘‘(1) IN GENERAL.—Any individual who— ANCE. tribution to an asset rollover account. ‘‘(A) makes a contribution to any asset (a) IN GENERAL.—Subpart D of part IV of ‘‘(2) AGGREGATE CONTRIBUTION LIMITA- rollover account for any taxable year, or subchapter A of chapter 1 of the Internal TION.—Except in the case of rollover con- ‘‘(B) receives any amount from any asset Revenue Code of 1986 (relating to business re- tributions, the aggregate amount for all tax- rollover account for any taxable year, lated credits) is amended by adding at the end the following: able years which may be contributed to all shall include on the return of tax imposed by asset rollover accounts established on behalf chapter 1 for such taxable year and any suc- ‘‘SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT. of an individual shall not exceed— ceeding taxable year (or on such other form ‘‘(a) IN GENERAL.—For purposes of section ‘‘(A) $500,000 ($250,000 in the case of a sepa- as the Secretary may prescribe) information rate return by a married individual), reduced 38, the employer-provided child care credit described in paragraph (2). determined under this section for the taxable by ‘‘(2) INFORMATION REQUIRED TO BE SUP- ‘‘(B) the amount by which the aggregate year is an amount equal to 25 percent of the PLIED.—The information described in this qualified child care expenditures of the tax- value of the assets held by the individual paragraph is information required by the payer for such taxable year. (and spouse) in individual retirement plans Secretary which is similar to the informa- ‘‘(b) DOLLAR LIMITATION.—The credit al- (other than asset rollover accounts) exceeds tion described in section 408(o)(4)(B). lowable under subsection (a) for any taxable $100,000. ‘‘(3) PENALTIES.—For penalties relating to year shall not exceed $150,000. The determination under subparagraph (B) reports under this paragraph, see section ‘‘(c) DEFINITIONS.—For purposes of this shall be made as of the close of the taxable 6693(b).’’. section— year for which the determination is being (b) CONTRIBUTIONS NOT DEDUCTIBLE.—Sec- ‘‘(1) QUALIFIED CHILD CARE EXPENDITURE.— made. tion 219(d) (relating to other limitations and The term ‘qualified child care expenditure’ ‘‘(3) ANNUAL CONTRIBUTION LIMITATIONS.— restrictions) is amended by adding at the end means any amount paid or incurred— ‘‘(A) GENERAL RULE.—The aggregate con- the following new paragraph: ‘‘(A) to acquire, construct, rehabilitate, or tribution which may be made in any taxable ‘‘(5) CONTRIBUTIONS TO ASSET ROLLOVER AC- expand property— year to all asset rollover accounts shall not COUNTS.—No deduction shall be allowed ‘‘(i) which is to be used as part of a quali- exceed the lesser of— under this section with respect to a con- fied child care facility of the taxpayer, ‘‘(i) the qualified net farm gain for the tax- tribution under section 1034A.’’. ‘‘(ii) with respect to which a deduction for able year, or (c) EXCESS CONTRIBUTIONS.— depreciation (or amortization in lieu of de- ‘‘(ii) an amount determined by multiplying (1) IN GENERAL.—Section 4973 (relating to preciation) is allowable, and the number of years the taxpayer is a quali- tax on excess contributions to individual re- ‘‘(iii) which does not constitute part of the fied farmer by $10,000. tirement accounts, certain section 403(b) principal residence (within the meaning of ‘‘(B) SPOUSE.—In the case of a married cou- contracts, and certain individual retirement section 121) of the taxpayer or any employee ple filing a joint return under section 6013 for annuities) is amended by adding at the end of the taxpayer, the taxable year, subparagraph (A) shall be the following new subsection: ‘‘(B) for the operating costs of a qualified applied by substituting ‘$20,000’ for ‘$10,000’ ‘‘(e) ASSET ROLLOVER ACCOUNTS.—For pur- child care facility of the taxpayer, including for each year the taxpayer’s spouse is a poses of this section, in the case of an asset costs related to the training of employees, to qualified farmer. rollover account referred to in subsection scholarship programs, and to the providing ‘‘(4) TIME WHEN CONTRIBUTION DEEMED (a)(1), the term ‘excess contribution’ means of increased compensation to employees with MADE.—For purposes of this section, a tax- the excess (if any) of the amount contributed higher levels of child care training, payer shall be deemed to have made a con- for the taxable year to such account over the ‘‘(C) under a contract with a qualified child tribution to an asset rollover account on the amount which may be contributed under sec- care facility to provide child care services to last day of the preceding taxable year if the tion 1034A.’’. employees of the taxpayer, or contribution is made on account of such tax- (2) CONFORMING AMENDMENTS.— ‘‘(D) under a contract to provide child care able year and is made not later than the (A) Section 4973(a)(1) is amended by strik- resource and referral services to employees time prescribed by law for filing the return ing ‘‘or’’ and inserting ‘‘an asset rollover ac- of the taxpayer. January 19, 1999 CONGRESSIONAL RECORD — SENATE S501 ‘‘(2) QUALIFIED CHILD CARE FACILITY.— person acquiring the interest in the facility By Mr. MOYNIHAN (for himself ‘‘(A) IN GENERAL.—The term ‘qualified shall be treated as the taxpayer for purposes and Mr. SCHUMER): child care facility’ means a facility— of assessing any recapture liability (com- S. 66. A bill to establish the Kate ‘‘(i) the principal use of which is to provide puted as if there had been no change in own- Mullany National Historic Site in the child care assistance, and ership). State of New York, and for other pur- ‘‘(ii) which meets the requirements of all ‘‘(4) SPECIAL RULES.— poses; to the Committee on Energy and applicable laws and regulations of the State ‘‘(A) TAX BENEFIT RULE.—The tax for the or local government in which it is located, taxable year shall be increased under para- Natural Resources. including, but not limited to, the licensing of graph (1) only with respect to credits allowed f by reason of this section which were used to the facility as a child care facility. THE INTRODUCTION OF THE KATE Clause (i) shall not apply to a facility which reduce tax liability. In the case of credits not so used to reduce tax liability, the MULLANY NATIONAL HISTORIC is the principal residence (within the mean- SITE DESIGNATION ACT OF 1999 ing of section 121) of the operator of the fa- carryforwards and carrybacks under section cility. 39 shall be appropriately adjusted. Mr. MOYNIHAN. Mr. President, it is ‘‘(B) NO CREDITS AGAINST TAX.—Any in- ‘‘(B) SPECIAL RULES WITH RESPECT TO A TAX- with great pride that I rise today with crease in tax under this subsection shall not PAYER.—A facility shall not be treated as a be treated as a tax imposed by this chapter my distinguished colleague Senator qualified child care facility with respect to a for purposes of determining the amount of SCHUMER to introduce the ‘‘Kate taxpayer unless— any credit under subpart A, B, or D of this Mullany National Historic Site Des- ‘‘(i) enrollment in the facility is open to part. ignation Act,’’ a bill to designate the employees of the taxpayer during the taxable ‘‘(C) NO RECAPTURE BY REASON OF CASUALTY Troy, New York, home of pioneer labor year, LOSS.—The increase in tax under this sub- ‘‘(ii) the facility is not the principal trade organizer Kate Mullany as a National section shall not apply to a cessation of op- or business of the taxpayer unless at least 30 Historic Site. A similar measure intro- eration of the facility as a qualified child percent of the enrollees of such facility are duced in the House of Representatives care facility by reason of a casualty loss to last year by Congressman MICHAEL R. dependents of employees of the taxpayer, and the extent such loss is restored by recon- ‘‘(iii) the use of such facility (or the eligi- struction or replacement within a reasonable MCNULTY engendered a great deal of bility to use such facility) does not discrimi- period established by the Secretary. support and was cosponsored by over nate in favor of employees of the taxpayer ‘‘(e) SPECIAL RULES.—For purposes of this 100 members. who are highly compensated employees section— Like many Irish immigrants settling (within the meaning of section 414(q)). ‘‘(1) AGGREGATION RULES.—All persons in Troy, Kate Mullany found her oppor- ‘‘(d) RECAPTURE OF ACQUISITION AND CON- which are treated as a single employer under tunities limited to the most difficult STRUCTION CREDIT.— subsections (a) and (b) of section 52 shall be and low-paying of jobs, the collar laun- ‘‘(1) IN GENERAL.—If, as of the close of any treated as a single taxpayer. taxable year, there is a recapture event with dry industry. Troy was then known as ‘‘(2) PASS-THRU IN THE CASE OF ESTATES AND ‘‘The Collar City’’—the birthplace of respect to any qualified child care facility of TRUSTS.—Under regulations prescribed by the taxpayer, then the tax of the taxpayer the Secretary, rules similar to the rules of the detachable shirt collar. At the age under this chapter for such taxable year subsection (d) of section 52 shall apply. of 19, Kate stood up against the often shall be increased by an amount equal to the ‘‘(3) ALLOCATION IN THE CASE OF PARTNER- dangerous conditions and meager pay product of— SHIPS.—In the case of partnerships, the cred- that characterized the industry and ‘‘(A) the applicable recapture percentage, it shall be allocated among partners under lead a movement of 200 female laun- and regulations prescribed by the Secretary. dresses demanding just compensation ‘‘(B) the aggregate decrease in the credits ‘‘(f) NO DOUBLE BENEFIT.— and safe working conditions. These allowed under section 38 for all prior taxable ‘‘(1) REDUCTION IN BASIS.—For purposes of protests marked the beginning of the years which would have resulted if the quali- this subtitle— fied child care expenditures of the taxpayer ‘‘(A) IN GENERAL.—If a credit is determined Collar Laundry Union, which some described in subsection (c)(1)(A) with respect under this section with respect to any prop- have called ‘‘the only bona fide female to such facility had been zero. erty by reason of expenditures described in labor union in the country.’’ ‘‘(2) APPLICABLE RECAPTURE PERCENTAGE.— subsection (c)(1)(A), the basis of such prop- Kate Mullany’s courage and organiz- ‘‘(A) IN GENERAL.—For purposes of this sub- erty shall be reduced by the amount of the ing skills did not go unnoticed. She section, the applicable recapture percentage credit so determined. later traveled down the Hudson River shall be determined from the following table: ‘‘(B) CERTAIN DISPOSITIONS.—If during any to lead women workers in the sweat- The applicable taxable year there is a recapture amount de- shops of New York City and was ulti- recapture termined with respect to any property the mately appointed Assistant Secretary ‘‘If the recapture event percentage is: basis of which was reduced under subpara- graph (A), the basis of such property (imme- of the then National Labor Union, be- occurs in: coming the first women ever appointed Years 1–3 ...... 100 diately before the event resulting in such re- Year 4 ...... 85 capture) shall be increased by an amount to a national labor office. Year 5 ...... 70 equal to such recapture amount. For pur- On April 1, 1998, Kate Mullany’s home Year 6 ...... 55 poses of the preceding sentence, the term ‘re- was designated as a National Historic Year 7 ...... 40 capture amount’ means any increase in tax Landmark by Secretary of the Interior Year 8 ...... 25 (or adjustment in carrybacks or carryovers) Bruce Babbitt and on July 15 First Years 9 and 10 ...... 10 determined under subsection (d). Lady Hillary Rodham Clinton pre- Years 11 and thereafter 0. ‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No sented citizens of Troy with the Na- ‘‘(B) YEARS.—For purposes of subparagraph deduction or credit shall be allowed under any other provision of this chapter with re- tional Historic Landmark plaque in a (A), year 1 shall begin on the first day of the celebration. By conferring National taxable year in which the qualified child spect to the amount of the credit determined care facility is placed in service by the tax- under this section.’’ Historic Site status on this important payer. (b) CONFORMING AMENDMENTS.— landmark, we can ensure that Kate (1) Section 38(b) of the Internal Revenue ‘‘(3) RECAPTURE EVENT DEFINED.—For pur- Mullany’s contributions to the labor poses of this subsection, the term ‘recapture Code of 1986 is amended— movement and the cause of women’s event’ means— (A) by striking ‘‘plus’’ at the end of para- equality in the workplace are not soon graph (11), ‘‘(A) CESSATION OF OPERATION.—The ces- (B) by striking the period at the end of forgotten. sation of the operation of the facility as a Mr. President, I ask unanimous con- qualified child care facility. paragraph (12), and inserting a comma and ‘‘plus’’, and sent that the bill be printed in the ‘‘(B) CHANGE IN OWNERSHIP.— (C) by adding at the end the following: RECORD. ‘‘(i) IN GENERAL.—Except as provided in There being no objection, the bill was clause (ii), the disposition of a taxpayer’s in- ‘‘(13) the employer-provided child care terest in a qualified child care facility with credit determined under section 45D.’’ ordered to be printed in the RECORD, as respect to which the credit described in sub- (2) The table of sections for subpart D of follows: section (a) was allowable. part IV of subchapter A of chapter 1 of such S. 66 Code is amended by adding at the end the ‘‘(ii) AGREEMENT TO ASSUME RECAPTURE LI- Be it enacted by the Senate and House of Rep- following: ABILITY.—Clause (i) shall not apply if the resentatives of the United States of America in person acquiring such interest in the facility ‘‘Sec. 45D. Employer-provided child care Congress assembled, agrees in writing to assume the recapture li- credit.’’ SECTION 1. SHORT TITLE. ability of the person disposing of such inter- (c) EFFECTIVE DATE.—The amendments This Act may be cited as the ‘‘Kate est in effect immediately before such disposi- made by this section shall apply to taxable Mullany National Historic Site Designation tion. In the event of such an assumption, the years beginning after December 31, 1999. Act’’. S502 CONGRESSIONAL RECORD — SENATE January 19, 1999

SEC. 2. FINDINGS AND PURPOSES. real property for parking or interpretation, KENNEDY, KERRY, DURBIN, and ROBB, to (a) FINDINGS.—Congress finds that— as necessary and appropriate for manage- introduce legislation to name the De- (1) the Kate Mullany House in Troy, New ment of the historic site. partment of Housing and Urban Devel- York, is listed on the National Register of (b) PERSONAL PROPERTY.—The Secretary Historic Places and has been designated as a may acquire personal property associated opment (HUD) headquarters here in National Historic Landmark; with, and appropriate for, the interpretation Washington after Dr. Robert C. Wea- (2) the National Historic Landmark Theme of the historic site. ver, adviser to three Presidents, direc- Study on American Labor History concluded (c) MEANS.—An acquisition of real property tor of the NAACP, and the first Afri- that the Kate Mullany House appears to or personal property may be made by dona- can-American Cabinet Secretary. With meet the criteria of national significance, tion, purchase from a willing seller with do- Senator KERRY, Senator MOSELEY- nated or appropriated funds, or exchange. suitability, and feasibility for inclusion in BRAUN, and Senator KENNEDY I intro- the National Park System; SEC. 6. ADMINISTRATION OF HISTORIC SITE. duced an identical bill last year. It was (3) the city of Troy, New York— (a) IN GENERAL.—The Secretary shall ad- (A) played an important role in the devel- minister the historic site in accordance with passed by the Senate by unanimous opment of the collar and cuff industry and this Act and the law generally applicable to consent on July 31, 1998 but languished the iron industry in the 19th century and in units of the National Park System, including in the House. the development of early men’s and women’s the Act entitled ‘‘An Act to establish a Na- Bob Weaver was my friend, dating worker and cooperative organizations; and tional Park Service, and for other purposes’’, back more than 40 years to our service (B) was the home of the first women’s approved August 25, 1916 (16 U.S.C. 1 et seq.), together in the administration of New labor union, led by Irish immigrant Kate and the Act entitled ‘‘An Act to provide for York Governor Averell Harriman. In Mullany; the preservation of historic American sites, (4) the city of Troy, New York, has entered buildings, objects, and antiquities of na- July of 1997, he died at his home in New into a cooperative arrangement with 6 neigh- tional significance, and for other purposes’’, York City after spending his entire life boring cities, towns, and villages to create approved August 21, 1935 (16 U.S.C. 461 et broadening opportunities for minori- the Hudson-Mohawk Urban Cultural Park seq.). ties in America. I think it is a fitting Commission to manage the valuable historic (b) COOPERATIVE AGREEMENTS.—In carrying tribute to name the HUD building after resources in the area, and the area within out this Act, the Secretary may consult with this great man. and enter into cooperative agreements with those municipalities has been designated by Dr. Weaver began his career in gov- the State of New York as a heritage area to the State of New York, the Hudson-Mohawk represent industrial development and labor Urban Cultural Park Commission, and other ernment service as part of President themes in the development of the State; public and private entities to facilitate pub- Franklin D. Roosevelt’s ‘‘Black Cabi- (5) the area, known as the ‘‘Hudson-Mo- lic understanding and enjoyment of the life net,’’ an informal advisory group pro- hawk Urban Cultural Park’’ or and work of Kate Mullany through the devel- moting educational and job opportuni- ‘‘RiverSpark’’, has been a pioneer in the de- opment, presentation, and funding of exhib- ties for blacks. The Washington Post velopment of partnership parks in which its and other appropriate activities related called this work his greatest legacy, intergovernmental and public and private to the preservation, interpretation, and use the dismantling of a deeply entrenched of the historic site and related historic re- partnerships bring about the conservation of system of racial segregation in Amer- the area’s heritage and the attainment of sources. goals for preservation, education, recreation, (c) EXHIBITS.—The Secretary may display, ica. Indeed it was. and economic development; and and accept for the purposes of display, items Dr. Weaver was appointed Deputy (6) establishment of the Kate Mullany Na- associated with Kate Mullany, as may be Commissioner of Housing for New York tional Historic Site and cooperative efforts necessary for the interpretation of the his- State in 1955, and later became State between the National Park Service and the toric site. Rent Administrator with Cabinet rank. Hudson-Mohawk Urban Cultural Park Com- (d) GENERAL MANAGEMENT PLAN.— (1) IN GENERAL.—Not later than 2 full fiscal It was during these years, working for mission will— Governor Harriman, that I first met (A) provide opportunities for the illustra- years after the date of enactment of this tion and interpretation of important themes Act, the Secretary shall— Bob; I was Assistant to the Secretary of the heritage of the United States; and (A) develop a general management plan for to the Governor and later, Acting Sec- (B) provide unique opportunities for edu- the historic site; and retary. cation, public use, and enjoyment. (B) submit the plan to the Committee on Our friendship and collaboration con- Energy and Natural Resources of the Senate (b) PURPOSES.—The purposes of this Act tinued under the Kennedy and Johnson are— and the Committee on Resources of the House of Representatives. administrations. In 1960, he became the (1) to preserve and interpret the nationally president of the NAACP, and shortly significant home of Kate Mullany for the (2) CONTENTS.—The plan shall include rec- benefit, inspiration, and education of the ommendations for regional wayside exhibits thereafter would become a key adviser people of the United States; and to be carried out through cooperative agree- to President Kennedy on civil rights. (2) to interpret the connection between im- ments with the State of New York and other In 1961, Kennedy appointed Dr. Weaver migration and the industrialization of the public and private entities. to head the Housing and Home Finance United States, including the history of Irish (3) REQUIREMENTS.—The plan shall be pre- Agency, the precursor to the Depart- immigration, women’s history, and worker pared in accordance with section 12(b) of the ment of Housing and Urban Develop- history. Act entitled ‘‘An Act to improve the admin- istration of the national park system by the ment. In 1966, when President Johnson SEC. 3. DEFINITIONS. Secretary of the Interior, and to clarify the elevated the agency to Cabinet rank, In this Act: authorities applicable to the system, and for he chose Dr. Weaver to head the de- (1) HISTORIC SITE.—The term ‘‘historic other purposes’’, approved August 18, 1970 (16 site’’ means the Kate Mullany National His- partment. Bob Weaver was, in John- U.S.C 1a et seq.). toric Site established by section 4. son’s phrase, ‘‘the man for the job.’’ He SEC. 7. AUTHORIZATION OF APPROPRIATIONS. (2) PLAN.—The term ‘‘plan’’ means the gen- thus became its first Secretary, and eral management plan developed under sec- There are authorized to be appropriated the first African-American to head a tion 6(d). such sums as are necessary to carry out this Cabinet agency. Later, he and I served Act. (3) SECRETARY.—The term ‘‘Secretary’’ together on the Pennsylvania Avenue means the Secretary of the Interior. By Mr. MOYNIHAN (for himself, Commission. SEC. 4. ESTABLISHMENT OF KATE MULLANY NA- Following his government service, TIONAL HISTORIC SITE. Mr. KERRY, Mr. DURBIN, Mr. (a) ESTABLISHMENT.—There is established ROBB, Mr. SCHUMER, and Mr. Dr. Weaver was, among various other as a unit of the National Park System the KENNEDY): academic pursuits, a professor at Kate Mullany National Historic Site in the S. 67. A bill to designate the head- Hunter College, a member of the State of New York. quarters building of the Department of School of Urban and Public Affairs at (b) DESCRIPTION.—The historic site shall Housing and Urban Development in Carnegie-Mellon, a visiting professor at consist of the home of Kate Mullany, com- Washington, District of Columbia, as Columbia Teacher’s College and New prising approximately .05739 acre, located at the ‘‘Robert C. Weaver Federal Build- York University’s School of Education, 350 Eighth Street in Troy, New York, as gen- erally depicted on the map entitled lllll ing’’; to the Committee on Environ- and the president of Baruch College in and dated llllll. ment and Public Works. Manhattan. When I became director of SEC. 5. ACQUISITION OF PROPERTY. THE ROBERT C. WEAVER FEDERAL BUILDING the Joint Center for Urban Studies at (a) REAL PROPERTY.—The Secretary may DESIGNATION ACT OF 1999 MIT and Harvard, he generously agreed acquire land and interests in land within the Mr. MOYNIHAN. Mr. President, I rise to be a member of the Board of Direc- boundaries of the historic site and ancillary with my colleagues, Senators SCHUMER, tors. January 19, 1999 CONGRESSIONAL RECORD — SENATE S503 Dr. Weaver earned his undergraduate, cial assistant in the housing division of the Dr. Weaver, who said that ‘‘you cannot master’s, and doctoral degrees in eco- Works Progress Administration, the Na- have physical renewal without human re- nomics from Harvard; he wrote four tional Defense Advisory Commission, the newal,’’ pushed for better-looking public books on urban affairs; and served as War Production Board and the War Man- housing by offering awards for design. He power Commission. also increased the amount of money for one of the original directors of the Mu- Shortly before the 1940 election, he devised small businesses displaced by urban renewal nicipal Assistance Corporation, which a strategy that defused anger among blacks and revived the long-dormant idea of Federal designed the plan to rescue New York about Stephen T. Early, President Roo- rent subsides for the elderly. City during its tumultuous financial sevelt’s press secretary. Arriving at Pennsyl- Later in his life, he was a professor of crisis in the 1970s. vania Station in New York, Early lost his urban affairs at Hunter College, was a mem- When Dr. Weaver died, America—and temper when a line of police officers blocked ber of the Visiting Committee at the School Washington, in particular (for he was a his way. Early knocked one of the officers, of Urban and Public Affairs at Carnegie-Mel- native Washingtonian)—lost one of its who happened to be black, to the ground. As lon University and held visiting professor- word of the incident spread, a White House ships at Columbia Teachers’ College and the innovators, one of its creators, one of adviser put through a telephone call to Dr. New York University School of Education. its true leaders. Dr. Robert C. Weaver Weaver in Washington. He also served as a consultant to the Ford led not only with his words but with The aide, worried that the incident would Foundation and was the president of Baruch his deeds and I was privileged to know cost Roosevelt the black vote, told Dr. Wea- College in Manhattan in 1969. him as a friend. He will be missed but ver to find the other black advisers and pre- His wife, Ella, died in 1991. Their son, Rob- properly memorialized, I think, if we pare a speech that would appeal to blacks for ert Jr., died in 1962. the President to deliver the speech. can pass this legislation. Dr. Weaver said he doubted that he could [From the Washington Post, July 20, 1997] Mr. President, I ask unanimous con- find anyone in the middle of the night, even ROBERT C. WEAVER DIES; FIRST BLACK sent that my bill, my statement, a though most of the others in the ‘‘Black Cab- CABINET MEMBER July 21, 1997 editorial in the Washing- inet’’ had been playing poker in his base- (By Martin Weil) ton Post, and a July 19, 1997 obituary ment when the phone rang. ‘‘And anyway,’’ Robert C. Weaver, 89, who as the nation’s from the New York Times be printed in he said, ‘‘I don’t think a mere speech will do first secretary of Housing and Urban Devel- the RECORD. it. What we need right now is something so opment was the first black person to head a There being no objection, the mate- dramatic that it will make the Negro voters Cabinet agency, as well as one of the archi- rial was ordered to be printed in the forget all about Steve Early and the Negro tects of the Great Society, died July 17 at his cop too.’’ RECORD, as follows: home in Manhattan. Within 48 hours, Benjamin O. Davis Sr. was He died in his sleep, according to a family S. 67 the first black general in the Army; William friend. The cause of death was not imme- Be it enacted by the Senate and House of Rep- H. Hastie was the first black civilian aide to diately known. resentatives of the United States of America in the Secretary of War, and Campbell C. John- Dr. Weaver, who was born and raised in Congress assembled, son was the first high-ranking black aide to Washington, was regarded as an intellectual, SECTION 1. DESIGNATION OF ROBERT C. WEAVER the head of the Selective Service. both pragmatic and visionary, who worked FEDERAL BUILDING. Robert Clifton Weaver was born on Dec. 29, to improve the lives of blacks and other In honor of the first Secretary of Housing 1907, in Washington. His father was a postal Americans both by expanding their opportu- and Urban Development, the headquarters worker and his mother—who he said influ- nities and by bettering their communities. building of the Department of Housing and enced his intellectual development—was the ‘‘He put the bricks and mortar on Presi- Urban Development located at 451 Seventh daughter of the first black person to grad- dent Johnson’s blueprint for a Great Soci- Street, SW., in Washington, District of Co- uate from Harvard with a degree in den- ety,’’ HUD Secretary Andrew M. Cuomo said lumbia, shall be known and designated as the tistry. When Dr. Weaver joined the Kennedy in a statement. ‘‘Robert C. Weaver Federal Building’’. Administration, whose Harvard connections ‘‘Robert Weaver got real urban legislation SEC. 2. REFERENCES. extended to the occupant of the Oval Office, on the books and nurtured our country’s Any reference in a law, map, regulation, he held more Harvard degrees—three, includ- first commitment to improve the quality of document, paper, or other record of the ing a doctorate in economics—than anyone life in our nation’s cities,’’ Cuomo said. United States to the building referred to in else in the administration’s upper ranks. On Jan. 13, 1966, when President Lyndon B. section 1 shall be deemed to be a reference to In 1960, after serving as the New York Johnson appointed the Harvard PhD and the ‘‘Robert C. Weaver Federal Building’’. State Rent Commissioner, Dr. Weaver be- longtime federal and state housing official to came the national chairman of the National be the first HUD secretary, many recognized [From the New York Times, July 19, 1997] Association for the Advancement of Colored that it was a moment both historic and sym- People, and President Kennedy sought Dr. ROBERT C. WEAVER, 89, FIRST BLACK CABINET bolic. Weaver’s advice on civil rights. The follow- Johnson said he had considered more than MEMBER, DIES ing year, the President appointed him ad- 300 candidates and had concluded that Dr. (By James Barron) ministrator of the Housing and Home Fi- Weaver was ‘‘the man for the job.’’ Dr. Robert C. Weaver, the first Secretary nance Agency, a loose combination of agen- In an interview after Dr. Weaver’s death, of Housing and Urban Development and the cies that included the bureaucratic compo- Walter E. Washington, the District’s first first black person appointed to the Cabinet, nents of what would eventually become mayor elected under home rule, who had died on Thursday at his home in Manhattan. H.U.D., including the Federal Housing Ad- worked with Dr. Weaver, called him ‘‘a He was 89. ministration to spur construction, the Urban giant’’ and ‘‘a man of great vision .. . integ- Dr. Weaver was also one of the original di- Renewal Administration to oversee slum rity, passion and commitment.’’ Washington rectors of the Municipal Assistance Corpora- clearance and the Federal National Mort- said, ‘‘There was never a job that was too tion, which was formed to rescue New York gage Association to line up money for new large or one that was too small if he saw in City from financial crisis in the 1970’s. housing. it the possibility of helping his fellow man.’’ ‘‘He was a catalyst with the Kennedys and President Kennedy tried to have the agen- Dr. Weaver was born Dec. 29, 1907, into the then with Johnson, forging new initiatives in cy raised to Cabinet rank, but Congress segregated world that was then Washington. housing and education,’’ said Walter E. balked. Southerners led an attack against He once recalled 45-minute streetcar rides Washington, the first elected Mayor of the the appointment of a black to the Cabinet, that took him past schools for whites before nation’s capital. and there were charges that Dr. Weaver was he reached his for blacks. A portly, pedagogical man who wrote four an extremist. Kennedy abandoned the idea of He was descended from a former slave who books on urban affairs, Dr. Weaver had made creating an urban affairs department. had bought his freedom in 1830. His father a name for himself in the 1930’s and 40’s as an Five years later, when President Johnson was a postal worker, and his mother was the expert behind-the-scenes strategist in the revived the idea and pushed it through Con- daughter of Robert Tanner Freeman, who civil rights movement. ‘‘Fight hard and le- gress, Senators who had voted against Dr. was a Harvard graduate and the first black gally,’’ he said, ‘‘and don’t blow your top.’’ Weaver the first time around vote for him. person in the United States to receive a doc- As a part of the ‘‘Black Cabinet’’ in the ad- Past Federal housing programs had largely torate in dentistry. ministration of President Franklin D. Roo- dealt with bricks-and-mortar policies. Dr. A multitalented man, Dr. Weaver worked sevelt, Dr. Weaver was one of a group of Weaver said Washington needed to take a as an electrician while attending Dunbar blacks who specialized in housing, education more philosophical approach. ‘‘Creative fed- High School in Washington. After gradua- and employment. After being hired as race eralism stresses local initiative, local solu- tion, he went to Harvard, where he majored relations advisers in various Federal agen- tions to local problems,’’ he said. in economics, won the Boylston speaking cies, they pressured and persuaded the White But, he added, ‘‘where the obvious needs prize and received his bachelor’s degree in House to provide more jobs, better edu- for action to meet an urban problem are not 1929. He received a master’s degree two years cational opportunities and equal rights. being fulfilled, the Federal Government has later and a doctorate in economics in 1934. Dr. Weaver began in 1933 as an aide to Inte- a responsibility at least to generate a thor- In 1933, after the watershed election of rior Harold L. Ickes. He later served as a spe- ough awareness of the problem.’’ Franklin D. Roosevelt, Dr. Weaver was one S504 CONGRESSIONAL RECORD — SENATE January 19, 1999 of the bright young intellectuals who came ened by poverty. Yuri Orlov could not Memoirs of a Russian Life. It captures to the capital to create and run the New be stopped by the sinister forces of the the fear extant in Soviet society and Deal. He spent 10 years in housing and labor Soviet Union and, no doubt, he will not the courage of men like Orlov, recruitment and training, detailed for part of be stopped by poverty. But I rise today Sakharov, Sharansky, Solzhenitsyn, that time as an adviser to Interior Secretary Harold Ickes. in hopes that it will not come to that. and others who defied the Soviet re- He also worked in the National Defense Dr. Orlov’s career as a dissident gime. Dr. Orlov, who spent 7 years in a Advisory Commission and, during World War began while he was working at the fa- labor camp and two years in Siberian II, was director of the Negro Manpower Serv- mous Institute for Theoretical and Ex- exile, never ceased protesting against ice in the War Manpower Commission. Dur- perimental Physics in Moscow. At the oppression. Despite deteriorating ing those years, he also was prominent in Institute in 1956 he made a pro-democ- health and the harsh conditions of the what was known as Roosevelt’s informal racy speech which cost him his posi- camp, Dr. Orlov smuggled out messages Black Cabinet, working behind the scenes to tion and forced him to leave Moscow. in support of basic rights and nuclear improve conditions and opportunities for arms control. His bravery and that of blacks. He was able to return in 1972, where- In the closing years of the war, he was ex- upon he began his most outspoken crit- his dissident colleagues played no ecutive secretary of the Chicago Mayor’s icism of the Soviet regime. small role in the dissolution of the So- Committee on Race Relations. During the On September 13, 1973, in response to viet Union. I am sure many would 1940s and early ’50s, he taught at univer- a government orchestrated-public agree that we owe them a tremendous sities, worked for philanthropic foundations smear campaign against Andrei debt. This then is a call to all those and held a series of government housing Sakharov, Orlov sent ‘‘Thirteen Ques- who agree with that proposition. Dr. posts in New York. Orlov is now in need; please join our At the start of his administration, Presi- tions to Brezhnev,’’ a letter which ad- dent John F. Kennedy named him chief of vocated freedom of the press and re- endeavor. what was then the principal federal agency form of the Soviet economy. One Mr. President, I ask unanimous con- responsible for housing, the Housing and month later, he became a founding sent that the text of the bill be printed Home Finance Agency. He was credited with member of the Soviet chapter of Am- in the RECORD. drawing together and unifying the efforts of nesty International. His criticism of There being no objection, the bill was what was regarded as a loose confederation the Soviet Union left him unemployed ordered to be printed in the RECORD, as of offices, bureaus and departments. and under constant KGB surveillance, follows: It was not until the Johnson administra- S. 68 tion that efforts to raise the department to but he would not be silenced. In May, 1976 Dr. Orlov founded the Be it enacted by the Senate and House of Rep- Cabinet level bore fruit. resentatives of the United States of America in But throughout his tenure as the chief fed- Moscow Helsinki Watch Group to pres- Congress assembled, eral housing official, it was Dr. Weaver who sure the Soviet Union to honor the ‘‘broadened the prespective’’ of government SECTION 1. RELIEF OF DR. YURI F. ORLOV OF human rights obligations it had accept- ITHACA, NEW YORK. policy, said Yvonne Scruggs-Leftwich, execu- ed under the Helsinki Accords signed in (a) IN GENERAL.—Notwithstanding any tive director of Black Leadership Forum Inc. 1975. His leadership of the Helsinki other provision of law, Dr. Yuri F. Orlov of and a former New York state housing com- Watch Group led to his arrest and, Ithaca, New York, shall be deemed an annu- missioner. She said Dr. Weaver moved policy eventually, to a show trial in 1978. He itant as defined under section 8331(9) of title from a narrow focus on the living unit itself 5, United States Code, and shall be eligible to to include community development, a more was condemned to seven years in a labor camp and five years in exile. receive an annuity. expansive view that encompassed both (b) COMPUTATION.—For purposes of comput- ‘‘housing and the environment around the After having served his prison sen- ing the annuity described under subsection housing.’’ tence, and while still in exile, Dr. Orlov (a), Dr. Yuri F. Orlov shall be deemed to— As Dr. Weaver had expressed it, ‘‘You can- was able to immigrate to the United (1) have performed 40 years of creditable not have physical renewal without human States in 1986 in an exchange arranged service as a Federal employee; and renewal.’’ (2) received pay at the maximum rate pay- At the same time, he was known for his by the Reagan Administration. A cap- tured Soviet spy was returned in ex- able for a position above GS–15 of the Gen- work for racial justice and equality. By the eral Schedule (as in effect on the date of en- 1960s, he had been active in the struggle for change for the release of Dr. Orlov and actment of this Act) for 3 consecutive years decades. At the time of his appointment by a writer for U.S. News & World Report of such creditable service. Kennedy, he was chairman of the NAACP. who had been arrested in Moscow, (c) CONTRIBUTIONS.—No person shall be re- Once, in the early days of the struggle, he Nicholas Daniloff. quired to make any contribution with re- advised that the best way to achieve equal- Since then, Dr. Orlov has served as a spect to the annuity described under sub- ity was ‘‘to fight hard—and legally—and senior scientist at Cornell University section (a). don’t blow your top.’’ in the Newman Laboratory of Nuclear (d) ADMINISTRATIVE PROVISIONS.—The Di- After leaving his Cabinet post at the end of rector of the Office of Personnel Manage- the Johnson administration, Dr. Weaver re- Studies. Now that he is 74 years old, he ment shall— turned to New York, where he was a teacher is turning his thoughts to retirement. (1) apply the provisions of chapter 83 of and a consultant. He headed Baruch College Unfortunately, since he has only been title 5, United States Code (including provi- in 1969 and was one of the directors of the in the United States for 12 years, his sions relating to cost-of-living-adjustments Municipal Assistance Corp., which was set up retirement income from the Cornell and survivor annuity benefits) to the annu- to save the city from fiscal collapse in the pension plus Social Security will be in- ity described under subsection (a) to the 1970s. greatest extent practicable; and He wrote, or contributed to, several books sufficient: only a fraction of what Cor- (2) make the first payment of such annuity and held at least 30 honorary degrees. nell faculty of comparable distinction no later than 60 days after the date of the en- His wife, Ella died in 1991, and their son, now get at retirement. actment of this Act. Robert Jr., died in 1962. His scientific colleagues, Nobel phys- icist Dr. Hans A. Bethe, Kurt Gottfried By Mr. MOYNIHAN: By Mr. MOYNIHAN: of Cornell, and Sidney Drell of Stan- S. 69. A bill to make available funds S. 68. A bill for the relief of Dr. Yuri ford, have made concerted efforts to under the Foreign Assistance Act of F. Orlov of Ithaca, New York; to the raise support for Dr. Orlov’s retire- 1961 to provide scholarships for nation- Committee on Governmental Affairs. ment, but they are in further need. als of any of the independent states of PRIVATE RELIEF BILL To this end, I have agreed to assist the former Soviet Union to undertake Mr. MOYNIHAN. Mr. President, these notable scientists in their en- doctoral graduate study in the social today I rise to introduce a bill to rec- deavor to secure a more appropriate sciences; to the Committee on Foreign ognize the immeasurable debt which we recompense for this heroic dissident. Relations. owe to a leading Soviet dissident. Dr. That is the purpose that brings me THE NIS EDUCATION ACT Yuri F. Orlov, a founding member of here to the Senate floor today, on the Mr. MOYNIHAN. Mr. President, I rise the Soviet chapter of Amnesty Inter- first day of the 106th Congress, to in- today to introduce the NIS Education national and founder of the Moscow troduce a bill on Dr. Orlov’s behalf. Act. For 75 years academic freedom Helsinki Watch Group (the first nation- To understand Dr. Orlov’s contribu- was squelched in the Soviet Union and wide organization in Soviet history to tions to ending the Cold War, I would the tools to build a democratic society question government actions), who now draw my colleagues attention to his were lost to its successor states. lives in Ithaca, New York, is threat- autobiography, Dangerous Thoughts: Thankfully, that is now passed. The January 19, 1999 CONGRESSIONAL RECORD — SENATE S505 Russians have the right to claim that scientists in the NIS is immeasurable. By Ms. SNOWE: they freed their own country from the It is this generation that will revitalize S. 70. A bill to require the establish- horrors of a decayed Marxist-Leninist the universities, teaching the next gen- ment of a Federal task force on Re- dictatorship. The Russian people and eration economics, sociology and other gional Threats to International Secu- their leaders have something about disciplines. It is this generation of so- rity; to the Committee on Foreign Re- which to be proud. cial scientists who will be prepared to lations. I rise in that spirit to offer a bill that enter their Governments armed with THE PREVENTION AND DETERRENCE OF is simple in both premise and purpose: new ideas and new ways of thinking INTERNATIONAL CONFLICT (PREDICT) ACT OF 1999 build democratic leaders of the NIS for different from the status quo; they will Ms. SNOWE. Mr. President, I rise to the future through education. The NIS bring their new knowledge and stand- introduce legislation to give the ad- Education Act will partially fund grad- ards, their linkages to the United ministration an incentive for develop- uate education in the social sciences States back to their own countries, and ing a more coherent foreign policy by for 500 students from the NIS during they will have the best opportunity to pooling the defense, diplomatic, intel- the next five years. The benefits of edu- influence change there. ligence, and economic resources of the cation and exposure to the United Mr. President, I ask unanimous con- federal government. States will be long lasting. sent that the bill be printed in the I have labeled this bill the Preven- We want to give these students from RECORD. tion and Deterrence of International the NIS a chance to see American de- There being no objection, the bill was Conflict Act—‘‘PREDICT’’—because mocracy and learn the tools to improve ordered to be printed in the RECORD, as the Clinton Administration failed or their own society. Indeed, for many it follows: willfully suspended its ability to an- will be their first chance to visit the S. 69 ticipate a string of foreign calamities world’s oldest democracy; to see the Be it enacted by the Senate and House of Rep- last year. promise that democracy offers; and to resentatives of the United States of America in The 1998 calendar of global surprises judge its fruits for themselves. As one Congress assembled, for the United States revealed the con- of our most famous visitors, Alexis de SECTION 1. SCHOLARSHIPS FOR NATIONALS OF tinuing challenge to this administra- THE INDEPENDENT STATE OF THE Tocqueville, wrote: FORMER SOVIET UNION. tion of analyzing evidence adequately Let us look to America, not in order to (a) AUTHORITY.— for the President to act against the ag- make a servile copy of the institutions that (1) IN GENERAL.—Subject to subsection (b), gressive military actions of India, she has established, but to gain a clearer the President is authorized to provide schol- Pakistan, North Korea, Yugoslavia, view of the polity that will be the best for arships under chapter 11 of part I of the For- and Iraq. us; let us look there less to find examples eign Assistance Act of 1961 (relating to as- Although we had satellite images and than instruction; let us borrow from her the sistance to the independent states of the early warning signs, the second series principles, rather than the details, of her former Soviet Union; 22 U.S.C. 2295 et seq.) of nuclear explosions by India in May laws . . . the principles on which the Amer- for 100 nationals of the independent states of ican constitutions rest, those principles of the former Soviet Union (as defined in sec- eluded the detection of the intelligence order, of the balance of powers, of true lib- tion 3 of the FREEDOM Support Act (22 authorities. erty, of deep and sincere respect for right, U.S.C. 5801)) who seek to commence graduate Although we had the campaign are indispensable to all republics. ... study in a six-year program in any field of pledges of India’s Prime Minister to ex- In 1948 the United States instituted social science. pand the country’s nuclear program, no the now famous Marshall Plan which (2) SUPERSEDING EXISTING LAW.—The au- one took them as an omen of action. included among its many provisions a thority of paragraph (1) shall be exercised Although we had differing agency as- without regard to any other provision of law. sessments of whether the export of fund for technical assistance. Part of (b) REQUIREMENTS.— commercial satellite technologies this fund included the ‘‘productivity (1) NON-FEDERAL SHARE.—The President campaign’’ which was designed to bring shall require that not less than 20 percent of posed the risk of improving China’s European businessmen and labor rep- the costs of each student’s doctoral study be military communications capabilities, resentatives here to learn American provided from non-Federal sources. the president never saw them. methods of production. During the (2) REQUIREMENT OF HOME COUNTRY SERV- Although Pentagon officials told the Plan’s three years, over 6,000 Euro- ICES.—Notwithstanding any other provision Senate Armed Services Committee on peans came to the United States to of law, any student supported under this sec- August 24, 1998 that the intelligence tion who does not perform after graduation study U.S. production. Though the community could detect in advance at least one year of service in the student’s any launching of a multiple-stage funding for this part of the plan was home country for each year of study sup- less than one-half of one percent of all ported under this section shall not be eligi- rocket by North Korea, they professed the Marshall Plan aid, its impact was ble to be issued a visa to be admitted to the surprise as a Taepo Dong missile far greater. The impact of the NIS Edu- United States. soared over Japan seven days later. cation Act may also be great. (c) ALLOCATION OF FUNDS.—Of the amounts And although we had indicators that We must note here the current state authorized to be appropriated to carry out the simmering conflict in Kosovo could of Russia’s affairs: it is deplorable. De- chapter 11 of part I of the Foreign Assistance unravel into a major Balkan security Act of 1961 (relating to assistance to the crisis, we did not know who led or sup- spite this situation, last spring the independent states of the former Soviet United States Senate voted to expand Union; 22 U.S.C. 2295 et seq.) for fiscal years plied the provincial insurgency move- the North Atlantic Treaty Organiza- 2000 through 2009, the following amounts are ment. tion. Throughout the elements of the authorized to be available to carry out sub- Furthermore, before finally approv- Russian political system NATO expan- section (a): ing military action against Iraq last sion was viewed as a hostile act they (1) For fiscal year 2000, $3,500,000 for not to month, the White House had lurched will have to defend against; and they exceed 100 scholarships. towards two previous strikes only to have said if they have to defend their (2) For fiscal year 2001, $7,500,000 for not to call off the missiles after Saddam Hus- exceed 200 scholarships. sein opened his seven-year old script to territory, they will do so with nuclear (3) For fiscal year 2002, $10,500,000 for not to weapons; that is all they have left. exceed 300 scholarships. repeat the hollow lines that he would The distrust born from NATO expan- (4) For fiscal year 2003, $14,000,000 for not to cooperate with the U.N. on his own sion will not fade quickly. Let us hope exceed 400 scholarships. terms in his own time. that the NIS Education Act will pro- (5) For fiscal year 2004, $17,500,000 for not to These examples highlight a pattern vide individuals from Russia and the exceed 500 scholarships. of fragmentation in the decision-mak- other NIS the opportunity to see that (6) For fiscal year 2005, $17,500,000 for not to ing apparatus of the Executive Branch. we Americans do not hope for Russia’s exceed 500 scholarships. Information that could tilt the course demise and isolation. Perhaps we can (7) For fiscal year 2006, $14,000,000 for not to of a crisis too often remains hidden or dispel the betrayal they may feel as a exceed 400 scholarships. undiscovered in the flow of advice to (8) For fiscal year 2007, $10,500,000 for not to result of NATO enlargement, and give exceed 300 scholarships. the White House. them the tools to further develop their (9) For fiscal year 2008, $7,500,000 for not to Beyond this disjointed process of own democracies. exceed 200 scholarships. making policy, the other critical issue Beyond that, the importance of (10) For fiscal year 2009, $3,500,000 for not to tying together these episodes of ten- training the next generation of social exceed 100 scholarships. sion centers on the threat of weapons S506 CONGRESSIONAL RECORD — SENATE January 19, 1999 proliferation fueled by unresolved civil Further more, the Task Force delib- have found that 10 percent of otherwise conflicts or the ambitions of regional erately includes intelligence represent- healthy Vietnam Veterans are Hepa- tyrants. atives so that policy options reflect the titis C positive. The uncertain political status of the most updated information on the in- Hepatitis C was not isolated until territory of Kashmir, for example, tentions of foreign leaders and the ca- 1989, and the test for the virus has only served as a convenient excuse for In- pabilities of their armed forces. been available since 1990. Hepatitis C is dian officials to justify their nuclear A comprehensive perspective remains a hidden infection with few symptoms. testing last Spring. At the same time, central to the execution of prudent for- However, most of those infected with the Pakistanis cited national prestige eign policies. The administration needs the virus will develop serious liver dis- and the need to stabilize the governing to harness the talent and expertise of ease 10 to 30 years after contracting it. coalition, rather than any threat of at- the federal government to ensure that For many of those infected, Hepatitis C tack, in explaining their nuclear re- the regional civil, military, and politi- can lead to liver failure, transplants, sponse to India’s provocation. cal disputes fostering weapons pro- liver cancer, and death. In both of these cases, political judg- liferation do not present a sustained And yet, most people who have Hepa- ments overshadowed sober consider- threat to international security. For titis C don’t even know it—and often ations of whether the two nations this compelling reason, I urge Congress do not get treatment until it’s too late. posed immediate military risks to one to renew America’s national security Only five percent of the estimated four another. organizations by passing the PREDICT million Americans with Hepatitis C Yet China’s hunger for technology, Act. know they have it, yet with new treat- Mr. President, derives less from an on- ments, some estimates indicate that 50 going civil conflict than it does from a By Ms. SNOWE: percent may have the virus eradicated. military establishment eager to de- S. 71. A bill to amend title 38, United Vietnam Veterans in particular are velop the precision capabilities used by States Code, to establish a presump- just now starting to learn that they the United States during the Persian tion of service-connection for certain have liver disease caused by Hepatitis Gulf War. veterans with Hepatitis C, and for C. Early detection and treatment may These capabilities, in turn, will other purposes; to the Committee on help head off serious liver disease for gradually advance Beijing’s quest to Veterans’ Affairs. many of them. However, many veter- displace the United States and Japan HEPATITIS C VETERANS’ LEGISLATION ans with Hepatitis C will not be treated as the dominant Asia-Pacific power. Ms. SNOWE. Mr. President, I rise by the VA because they must meet a The PREDICT bill, therefore, brings today to introduce legislation I intro- standard that is virtually impossible to together the broad range of foreign pol- duced late in the 105th Congress to ad- meet in order to establish a service icy experts throughout the government dress a serious health concern for vet- connection for their condition—this in into one Federal Task Force on Re- erans—specifically the health threat spite of the fact that we now know that gional Threats to International Secu- posed by the Hepatitis C virus. rity. The Federal Task Force would in- many Vietnam-era and other veterans The legislation I am introducing clude representatives of the Depart- got this disease serving their country. today would make Hepatitis C a serv- Many of my colleagues may be inter- ments of State, Defense, and Com- ice-connected condition so that veter- ested to know how veterans were ex- merce, as well as military and foreign ans suffering from this virus can be posed to this virus. Many veterans re- intelligence organizations, to advise treated by the VA. The bill will estab- ceived blood transfusions while in Viet- the president in three categories: How the United States can foster dip- lish a presumption of service connec- nam. This is one of the most common lomatic resolutions of regional dis- tion for veterans with Hepatitis C, ways Hepatitis C is transmitted. Medi- putes that increase the risk of weapons meaning that the Department of Veter- cal transmission of the virus through proliferation; ans Affairs will assume that this condi- needles and other medical equipment is Trade and investment programs to tion was incurred or aggravated in also possible in combat. Medical care promote the market-based develop- military service, provided that certain providers in the services were likely at ment of countries that pursue or pos- conditions are met. increased risk as well, and may have, sess weapons of mass destruction; Under this legislation, veterans who in turn, posed a risk to the service And the implementation of intel- received a transfusion of blood during a members they treated. ligence analysis procedures to ensure period of service before December 31, Researchers have discovered that that the president has all of the data 1992; veterans who were exposed to Hepatitis C was widespread in South- necessary before he makes any decision blood during a period of service; veter- east Asia during the Vietnam war, and regarding this category of arms. ans who underwent hemodyalisis dur- that some blood sent from the U.S. was The President must establish the ing a period of service; veterans diag- also infected with the virus. Research- Task Force no later than 60 days after nosed with unexplained liver disease ers and veterans organizations, includ- the effective date of the law, and the during a period of service; veterans ing the Vietnam Veterans of America, panel’s authority would expire on Octo- with an unexplained liver dysfunction with whom I worked closely to prepare ber 1, 2001 unless an executive order or value or test; or veterans working in a this legislation, believe that many vet- an act of Congress renews the operat- health care occupation during service, erans were infected after being injured ing charter. will be eligible for treatment for this in combat and getting a transfusion or PREDICT, therefore, outlines a clear condition at VA facilities. from working as a medic around com- and comprehensive process for foreign I have reviewed medical research bat injuries. policy development without prejudging that suggests many veterans were ex- The Hepatitis C infected veteran is what steps the President should take. posed to Hepatitis C in service and are essentially in a catch 22 situation: the He must create the Task Force. He now suffering from liver and other dis- VA will not introduce any flexibility must consider the information that it eases caused by exposure to the virus. into their established service connec- presents, and he must determine I am troubled that many ‘‘Hepatitis C tion requirements—and many veterans whether to accept it. After two years, veterans’’ are not being treated by the cannot prove that they contracted Hep- both the administration and Congress VA because they can’t prove the virus atitis C in combat because the science can judge the record of the Task Force was service connected, despite the fact to detect it did not until recently. to decide whether it should continue to that Hepatitis C was little known and Without legislative authority to treat function. could not be tested for until recently. these veterans, thousands of veterans What this legislation proposes that Mr. President, we are learning that infected with Hepatitis C in service does not exist is an integrated advisory those who served in Vietnam and other will not get the VA health care testing body to analyze the military, diplo- conflicts, tend to have higher than av- or treatment they need. matic, and economic options available erage rates of Hepatitis C. In fact, VA Mr. President, I believe the govern- to the president for controlling re- data shows that 20 percent of its inpa- ment will actually save money in the gional conflicts and the spread of weap- tient population is infected with the long run by testing and treating this ons of mass destruction. Hepatitis C virus, and some studies infection early on. The alternative is January 19, 1999 CONGRESSIONAL RECORD — SENATE S507 much more costly treatment of end- nesses, such as lung cancer. I might FULBRIGHT SCHOLARSHIPS FOR CUBAN stage liver disease and the associated ask, once we start restricting service- NATIONALS complications, or other disorders.s related disabilities treated through the Mr. MOYNIHAN. Mr. President, I rise Some will argue that further epi- VA, where does it end? I am very con- today to introduce a bill to authorize demiologic data is needed to resolve or cerned that the VA will become a tar- funding for Cuban nationals for the prove the issue of service connection. I get for further erosions of veterans Fulbright Educational Exchange Pro- agree that we have our work cut out benefits. The VA is already having dif- gram so that they may come to the for us, and further study is required. ficulty making good on its promise to United States for graduate study. However, there is already a substantial provide essential benefits to veterans. body of research on the relationship be- What benefit will be repealed next? The world is a changed place. The So- viet Union dissolved almost a decade tween Hepatitis C and military service. Some may argue that military per- While further research is being con- ago, and since then democracy has re- sonnel made the decision to smoke. No- placed totalitarianism in Eastern Eu- ducted, we should not ask those who body forced them. But this ignores that have already sacrificed so much for rope. Since the demise of its sponsor, fact that these choices were facili- the Soviet Union, and the disappear- this country to wait—perhaps for tated, and perhaps even encouraged, by years—for the treatment they deserve. ance of Soviet subsidies, Cuba has had the inclusion of free cigarettes in indi- to change to survive. In time, the Former Surgeon General C. Everett vidual supply kits and discounts on to- Koop, well respected both within and winds of democracy sweeping the globe bacco products. Many military person- will reach the shores of Cuba. outside of the medical profession, has nel may have smoked for the first time said, ‘‘In some studies of veterans en- while on active duty. We learned from the cold war that tering the Department of Veterans Af- one of the most subversive acts in that That is why I have fought to restore fairs health facilities, half of the veter- ideological conflict was exposing com- veterans disability compensation for ans have tested positive for HCV. Some munists to the West. In his lucid tobacco-related illnesses and disabil- of these veterans may have left the chronicle of the demise of the Soviet ity—because I believe that Congress military with HCV infection, while Union, Michael Dobbs writes in Down circumvented the process and under- others may have developed it after with Big Brother: The Fall of the So- mined fairness when it repealed this their military service. In any event, we viet Empire, need to detect and treat HCV infection benefit to fund the ISTEA legislation. if we are to head off very high rates of Mr. President, there should have A turning point in [Boris] Yeltsin’s intel- lectual development occurred during his first liver disease and liver transplant in VA been a full airing of this issue before we voted to rescind the benefit. There visit to the United States in September 1989, facilities over the next decade. I be- more specifically his first visit to an Amer- lieve this effort should include HCV was little debate on the Senate floor on ican supermarket, in Houston, Texas. The testing as part of the discharge phys- this matter. This is not how those sight of aisle after aisle of shelves neatly ical in the military, and entrance brave Americans who sacrificed for stacked with every conceivable type of food- screening for veterans entering the VA freedom should be treated by the gov- stuff and household item, each in a dozen va- health system.’’ ernment they fought to preserve. rieties, both amazed and depressed him. For Yeltsin, like many other first-time Russian Veterans have already fought their During the Senate’s consideration of share of battles—these men and women visitors to America, this was infinitely more the FY99 Budget Resolution, I opposed impressive than tourist attractions like the who sacrificed in war so that others efforts to repeal the benefit and voted Statue of Liberty and the Lincoln Memorial. could live in peace shouldn’t have to for an amendment to sustain it. In ad- It was impressive precisely because of its or- fight again for the benefits and respect dition, I supported an amendment sub- dinariness. A cornucopia of consumer goods they have earned. mitted by Senator MCCAIN to the to- beyond the imagination of most Soviets was We still have a long way to go before bacco bill providing $600 million over within the reach of ordinary citizens without we know how best to confront this five years to veterans for smoking-re- standing in line for hours. And it was all so attractively displayed. For someone brought deadly virus. A comprehensive policy lated diseases and health care. Finally, to confront such a monumental chal- up in the drab conditions of communism, during the Senate’s consideration of even a member of the relatively privileged lenge cannot be written overnight. It the FY99 VA–HUD Appropriations Act, elite, a visit to a Western supermarket in- will require the long-term commitment I supported an amendment to restore volved a full-scale assault on the senses. of Congress and the Administration to the benefit. Unfortunately, this amend- a serious effort to address this health What we saw in that supermarket was no ment was rejected 54–40. I continue to less amazing than America itself,’’ recalled concern. believe we should debate the matter Lev Sukhanov, who accompanied Yeltsin on I hope this legislation will be a con- fully, we should have a vote, and we his trip to the United States and shared his structive step in this effort, and I look should pass legislation that will right sense of shock and dismay at the gap in liv- forward to working with the Veterans this wrong. ing standards between the two superpowers. Affairs Committee, the VA–HUD appro- ‘‘I think it is quite likely that the last prop We must not ignore the fact that the priators, Vietnam Veterans of Amer- of Yeltsin’s Bolshevik consciousness finally military has been one of the largest ica, and others to meet this emerging collapsed after Houston. His decision to distributors of tobacco products for challenge. leave the party and join the struggle for su- decades. The military glamorized the preme power in Russia may have ripened ir- By Ms. SNOWE: use of tobacco and distributed free revocably at that moment of mental confu- sion. S. 72. A bill to amend title 38, United cigarettes during World War II, the Ko- States Code, to restore the eligibility rean War, and the Vietnam War. We The young people of Cuba are that of veterans for benefits resulting from cannot turn a blind eye to this lethal country’s future. As such what they injury or disease attributable to the legacy. We must not turn our backs on learn now will help shape a post-Castro use of tobacco products during a period those who continue to suffer the con- Cuba. Since its inception in 1947, at the of military service, and for other pur- sequences of their service. That is why suggestion of Senator J. William Ful- poses; to the Committee on Veterans’ I hope that my colleagues will join me bright, the Fulbright Educational Ex- Affairs. in supporting this effort, and restore change Program has sent nearly 82,000 VA TOBACCO BENEFITS this important benefit. Americans abroad and provided 138,000 Ms. SNOWE. Mr. President, today I foreign students and professors with am introducing legislation that will re- By Mr. MOYNIHAN: the opportunity to come to the United store an important benefit for our na- S. 73. A bill to make available funds States for study—to live here, to un- tion’s veterans—disability compensa- under the Mutual Educational and Cul- derstand our great country, and return tion benefits for those with tobacco-re- tural Exchange Act of 1961 to provide to their own nations so enriched. Near- lated illnesses or disabilities. Fulbright scholarships for Cuban na- ly 50 years ago they sent me off to the The President’s budget proposal for tionals to undertake graduate study in London School of Economics. I left the FY99 restricted disability compensa- the social sciences; to the Committee United States untouched by war to live tion benefits for tobacco-related ill- on Foreign Relations. in Europe as it climbed out of its ruins. S508 CONGRESSIONAL RECORD — SENATE January 19, 1999

In London, I learned from experience KULSKI, Mrs. MURRAY, Mr. REID, The government, by itself, cannot Seymour Martin Lipset’s dictum, ‘‘He Mr. WYDEN, Mrs. BOXER, Mr. change the attitudes and perceptions of who knows only one country knows no LAUTENBERG, Mr. KENNEDY, Mr. individuals and private businesses in country.’’ Use the simple analogy of KERREY, Mr. DURBIN, Ms. hiring and advancing women, but it eyesight: it takes two eyes to provide LANDRIEU, Mr. ROBB, Mr. can set an example. Certainly Presi- perspective. It was a seminal time for TORRICELLI, Mr. BREAUX, Mr. dent Clinton has shown great leader- the world and for me. This bill will WELLSTONE, and Mrs. FEIN- ship by appointing an unprecedented offer that opportunity to Cubans to STEIN): number of women to his administra- study in the United States, as I studied S. 74. A bill to amend the Fair Labor tion. In my home state of Vermont, in London. Standards Act of 1938 to provide more Major General Martha Rainville has Fidel Castro will not live forever—it effective remedies to victims of dis- been appointed Adjutant General of the is time to get ready for an end game. crimination in the payment of wages Vermont National Guard—the first Now is the time to start showing the on the basis of sex, and for other pur- woman in the country to hold this people of Cuba, especially the young poses; to the Committee on Health, prestigious position. people, how the United States works Education, Labor, and Pensions. Vermont is also a leader in providing and how their country might change. PAYCHECK FAIRNESS ACT pay equity. According to the Institute So let us bring them here and not act Mr. LEAHY. Mr. President, I am for Women’s Policy Research, Vermont like it’s the middle of the Cold War. privileged to join with my colleague ranks second in providing equal pay. Let us bring them to the United States Senator TOM DASCHLE to introduce the Even with this ranking, the average and offer them education and a chance Paycheck Fairness Act. woman in Vermont still is making less to see the world’s oldest democracy in Early in the next century, women— than 82 cents for every dollar that the action. We need to begin now to expose for the first time ever—will outnumber average man makes in Vermont. We future leaders of Cuba to the United men in the United States workplace. In must work in the Senate and in the States. For, as Senator Fulbright ob- 1965, women held 35 percent of all jobs. workplace to close this gap. served, That has grown to more than 46 per- We are all familiar with the glass The vital mortar to seal the bricks of cent today. And in a few years, women ceiling which prevents women from ad- world order is education across international will make up a majority of the work- vancing in the workplace. However, boundaries, not with the expectation that force. knowledge would make us love each other, woman are also facing a glass wall— but in the hope that it would encourage em- Fortunately, there are more business they are unable to achieve equal pay pathy between nations, and foster the emer- and career opportunities for women for equal work. Women cannot break gence of leaders whose sense of other nations today than there were thirty years ago. the glass ceiling until the wall comes and cultures would enable them to shape spe- Unlike 1965, federal, state, and private down. cific policies based on tolerance and rational sector programs now offer women The Paycheck Fairness Act is one restraint. many opportunities to choose their step to remedy this problem and bring Mr. President, I ask unanimous con- own futures. Working women also have down the glass wall. This Act will sent that the bill be printed in the opportunities to gain the knowledge strengthen enforcement of the Equal RECORD. and skills to achieve their own eco- Pay Act, increase penalties for viola- There being no objection, the bill was nomic security. tions, and permit employees to openly ordered to be printed in the RECORD, as But despite these gains, working discuss their wages with coworkers follows: women still face a unique challenge— without fear of retaliation by their em- S. 73 achieving pay equity. The average ployers. Be it enacted by the Senate and House of Rep- woman earns 74 cents for every dollar I understand that this bill will not resentatives of the United States of America in that the average man earns. This solve all of the problems of pay in- Congress assembled, amounts to a woman earning $8,434 less SECTION 1. FULBRIGHT SCHOLARSHIPS FOR equity, but it will close legal loopholes than a man over the course of one year that allow employers to routinely un- CUBAN NATIONALS. and earning more than a quarter of a (a) AUTHORITY.— derpay women. By closing these loop- million dollars less over the course of a (1) IN GENERAL.—The President is author- holes, we will help women achieve bet- ized to provide scholarships under the Ful- career. ter economic security and provide We must correct this gross inequal- bright Academic Exchange Program in sec- them with more opportunities. tion 102 of the Mutual Educational and Cul- ity, and we must correct it now. tural Exchange Act of 1961 (22 U.S.C. 2452) for How is this possible with our federal By Mr. LUGAR: nationals of Cuba who seek to undertake laws prohibiting discrimination? It is S. 75. A bill to repeal the Federal es- graduate study in public health, public pol- possible because we in Congress have tate and gift taxes and the tax on gen- icy, economics, law, or other field of social failed to protect one of the most fun- eration-skipping transfers; to the Com- science. damental human rights—the right to (2) PROHIBITION.—No official of the Cuban mittee on Finance. be paid fairly for an honest day’s work. ESTATE AND GIFT TAX REPEAL ACT OF 1999 government, or any member of the imme- Unfortunately, our laws ignore wage diate family of the official, shall be eligible to receive a scholarship under paragraph (1). discrimination against women, which continues to fester like a cancer in By Mr. LUGAR: (3) SUPERSEDING EXISTING LAW.—The au- S. 76. A bill to phase-out and repeal work places across the country. The thority of paragraph (1) shall be exercised the Federal estate and gift taxes and without regard to any other provision of law. Paycheck Fairness Act of 1999 would the tax on generational-skipping trans- (b) ALLOCATION OF FUNDS.—Of the amounts close this legal loophole by addressing authorized to be appropriated to carry out the problem of pay inequality by re- fers; to the Committee on Finance. the Mutual Educational and Cultural Ex- dressing past discrimination and in- ESTATE AND GIFT TAX PHASE-OUT ACT OF 1999 change Act of 1961 (22 U.S.C. 2451 et seq.) for fiscal years 2000 through 2004, the following creasing enforcement against future abuses. By Mr. LUGAR: amounts are authorized to be available to S. 77. A bill to increase the unified carry out subsection (a): I do not pretend that this Act will (1) For fiscal year 2000, $1,400,000 for not to solve all the problems women face in estate and gift tax credit to exempt exceed 20 scholarships. the work place. But it is an essential small businesses and farmers from es- (2) For fiscal year 2001, $1,750,000 for not to piece of the puzzle. Equal pay for equal tate taxes; to the Committee on Fi- exceed 25 scholarships. work is often a subtle problem that is nance. (3) For fiscal year 2002, $2,450,000 for not to difficult to combat. Ant it does not FARMER AND ENTREPRENEUR ESTATE TAX exceed 35 scholarships. stand alone as an issue that woman RELIEF ACT OF 1999 (4) For fiscal year 2003, $2,450,000 for not to face in the workplace. It is deeply exceed 35 scholarships. (5) For fiscal year 2004, $2,450,000 for not to intertwined with the problem of un- Mr. LUGAR (for himself, Mr. exceed 35 scholarships. equal opportunity. Closing this loop- HAGEL, Mr. ROBERTS, and Mr. hole is not enough if we fail to provide HELMS): By Mr. DASCHLE (for himself, the opportunity for women to reach S. 78. A bill to amend the Internal Mr. KERRY, Mr. LEAHY, Ms. MI- high paying positions. Revenue Act of 1986 to increase the gift January 19, 1999 CONGRESSIONAL RECORD — SENATE S509 tax exclusion to $25,000; to the Commit- farmers could confront the inheritance One might expect that for all the eco- tee on Finance. tax during the next 20 years. nomic disincentives caused by the es- GIFT TAX EXCLUSION To combat this problem, today I offer tate tax, it must at least provide a siz- Mr. LUGAR. Mr. President, I am several legislative alternatives to pro- able contribution to the U.S. Treasury. pleased to introduce on behalf of my- vide relief to those impacted by this But in reality, the estate tax only ac- self and Senators HAGEL, HELMS and tax. My first bill would repeal the es- counts for about 1 percent of federal ROBERTS a package of legislation in- tate and gift taxes outright. My second taxes. It cannot be justified as an indis- tended to minimize or eliminate the bill would phase out the estate tax over pensable revenue raiser. Given the blow burden that estate and gift taxes place five years by gradually raising the uni- delivered to job formation and eco- on our economy. The estate tax hinders fied credit each year until the tax is re- nomic growth, the estate tax may even entrepreneurial activity and job cre- pealed after the fifth year. My third cost the Treasury money. Our nation’s ation in many sectors of our economy. bill would immediately raise the effec- ability to create new jobs, new oppor- Despite the fact that my bills would tive unified credit to $5 million in an tunities and wealth is damaged as a re- help all Americans who face this oner- effort to address the disproportionate sult of our insistence on collecting a ous tax, I come to the estate tax debate burden that the estate tax places on tax that earns less than 1 percent of because of my interest in American ag- farmers and small businesses. My last our revenue. bill would raise the gift tax exemption riculture. But this tax affects more than just As Chairman of the Senate Agri- from $10,000 to $25,000. I believe the best option is a simple the national economy. It affects how culture Committee, I have held hear- we as a nation think about community, ings on the impact of the estate tax on repeal of the estate tax. I am hopeful that during this Congress, as members family and work. Small businesses and farmers and ranchers. The effects of in- farms represent much more than as- heritance taxes are fare reaching in the become more aware of the effects of this tax, we can eliminate it from the sets. They represent years of toil and agricultural community. Citing per- tax code. However, even if the estate entrepreneurial risk taking. They also sonal experiences, witnesses described tax is not repealed, the unified credit represent the hopes that families have how the estate tax discourages savings, must be raised significantly. Despite for their children. Part of the Amer- capital investment and job formation. our most recent success in raising the ican Dream has always been to build up One such story came from a Hoosier, a business, farm or ranch so that eco- Mr. Woody Barton. He is a fifth genera- exemption level, inflation has caused a growing percentage of estates to be nomic opportunities and a way of life tion tree farmer living in the house his can be passed on to one’s children and great grandparents built in 1885. I vis- subjected to the estate tax. My second bill is intended to highlight this point grandchildren. ited his 300 acres of forested property and provide a gradual path to repeal. I know first-hand about the dangers last October and can attest to its beau- My third bill focuses on relieving the of this tax to agriculture. My father ty. Typical of many farmers, Mr. Bar- estate tax burden that falls dispropor- died when I was 24, leaving his 604-acre ton is over 65 years old and wants to tionately on farmers and small busi- farm in Marion County, Indiana, to his leave this legacy to his four children. ness owners. By raising the exemption family. I helped manage the farm, But he fears that the estate tax may amount to $5 million, 96 percent of es- which had built up considerable debts cause his children to strip the timber tates with farm assets and 90 percent of during my father’s illness. Fortu- and then sell the land in order to pay estates with non-corporate business as- nately, after a number of years, we the estate tax bill. His grandmother sets would not have to pay estate were successful in working out the fi- logged a portion of the land in 1939 to taxes, according to the IRS. nancial problems and repaying the pay the debts that came from the death The final bill in this package would money. We were lucky. That farm re- of her husband. In essence, each gen- raise the gift tax exemption from mains in our family because I have eration must buy back the hard work $10,000 to $25,000. This level has not been practicing active estate planning and dedication of their ancestors from been adjusted since 1982. Over the and execution of the plan along with the federal government. Mr. Barton be- years, the inflation has eroded this ex- profitable farming for each of the last lieves, and I agree, that the actions of emption amount, and I believe this 40 years. But many of today’s farmers Congress have more impact on the out- level must be raised to provide Ameri- and small business owners are not so come of his family’s land than his own cans with an additional tool for passing fortunate. Only about 30 percent of planning and investment. This should productive assets to the next genera- businesses are transferred from parent not be the case. tion. to child, and only about 12 percent of The estate and gift tax falls dis- Despite its modest beginnings in 1916, businesses make it to a grandchild. proportionately hard on our agricul- the estate tax has mushroomed into an Mr. President, these bills I have in- tural producers. Ninety-five percent of exorbitant tax on death that discour- farms and ranch operations are sole troduced will provide policymakers ages savings, economic growth and job with a range of options as they seek to proprietorships or family partnerships, formation by blocking the accumula- subjecting a vast majority of these mitigate the burdens of the estate tax. tion of entrepreneurial capital and by Doing so will lead to expanded invest- businesses to the threat of inheritance breaking up family businesses and taxes. According to USDA figures, ment incentives and job creation and farms. With the highest marginal rate will reinvigorate an important part of farmers are six times more likely to at 55 percent, more than half of an es- face inheritance taxes than other the American Dream. I am hopeful that tate can go directly to the government. Senators will join me in the effort to Americans. And commercial farm es- By the time the inheritance tax is lev- tates—those core farms that produce 85 free small businesses, family farms and ied on families, their assets have al- our economy from this counter- percent of our nation’s agricultural ready been taxed at least once. This products—are fifteen times more likely productive tax. I ask unanimous con- form of double taxation violates per- sent that my four bills be printed in to pay inheritance taxes than other in- ceptions of fairness in our tax system. the RECORD. dividuals. If we are sincere about boosting eco- This hardship will only get worse as nomic growth, we must consider what There being no objection, the bills the agricultural community gets older, effect the estate tax has on a business were ordered to be printed in the with the average farmer about to have owner deciding whether to invest in RECORD, as follows: a 60th birthday. Many farmers will new capital goods or hire a new em- S. 75 shortly confront estate and gift taxes ployee. The Heritage Foundation esti- Be it enacted by the Senate and House of Rep- when they pass their farm onto the mates that repealing the estate tax resentatives of the United States of America in next generation. Recently, the USDA would annually boost our economic Congress assembled, estimated that between 1992 and 2002, output by $11 billion, create 145,000 new SECTION 1. SHORT TITLE. more than 500,000 farmers will retire. jobs and raise personal income by $8 This Act may be cited as the ‘‘Estate and Only half of those positions will be re- billion. These figures underscore the Gift Tax Repeal Act of 1999’’. placed by young farmers. Demographic current weight of this tax on our econ- SEC. 2. FINDINGS. studies indicate that a quarter of all omy. Congress finds the following: S510 CONGRESSIONAL RECORD — SENATE January 19, 1999 (1) The economy of the United States can- years but has slowed to 2.4 percent over the (5) Repealing the estate and gift tax would not achieve strong, sustained growth with- past quarter century. contribute to the goals of expanding savings out adequate levels of savings to fuel produc- (4) Repealing the estate and gift tax would and investment, boosting entrepreneurial ac- tive activity. Inadequate savings have been contribute to the goals of expanding savings tivity, and expanding economic growth. The shown to lead to lower productivity, stagnat- and investment, boosting entrepreneurial ac- estate tax is harmful to the economy be- ing wages, and reduced standards of living. tivity, and expanding economic growth. cause of its high marginal rates and its mul- (2) Savings levels in the United States have (5) Abolishing the estate tax would restore tiple taxation of income. steadily declined over the past 25 years, and a measure of fairness to the Federal tax sys- (6) The repeal of the estate tax would in- have lagged behind the industrialized trad- tem. Families should be able to pass on the crease the growth of the small business sec- ing partners of the United States. fruits of labor to the next generation with- tor, which creates a majority of new jobs in (3) These anemic savings levels have con- out realizing a taxable event. our Nation. Estimates indicate that as many tributed to the country’s long-term down- (6) Abolishing the estate tax would benefit as 70 percent of small businesses do not ward trend in real economic growth, which the preservation of family farms. Nearly 95 make it to a second generation and nearly 90 averaged close to 3.5 percent over the last 100 percent of farms and ranches are owned by percent do not make it to a third. years but has slowed to 2.4 percent over the sole proprietors or family partnerships, sub- (7) Eliminating the estate tax would lift past quarter century. jecting most of this property to estate taxes the compliance burden from farmers and (4) Congress should work toward reforming upon the death of the owner. Due to the cap- family businesses. On average, family-owned the entire Federal tax code to end its bias ital intensive nature of farming and its low businesses spent over $33,000 on accountants, against savings and eliminate double tax- return on investment, farmers are 15 times lawyers, and financial experts in complying ation. more likely to be subject to estate taxes with the estate tax laws over a 6.5-year pe- (5) Repealing the estate and gift tax would than other Americans. riod. contribute to the goals of expanding savings SEC. 3. PHASE-OUT OF ESTATE AND GIFT TAXES (8) Abolishing the estate tax would benefit and investment, boosting entrepreneurial ac- THROUGH INCREASE IN UNIFIED ES- the preservation of family farms. Nearly 95 tivity, and expanding economic growth. The TATE AND GIFT TAX CREDIT. percent of farms and ranches are owned by (a) IN GENERAL.—The table in section estate tax is harmful to the economy be- sole proprietors or family partnerships, sub- 2010(c) of the Internal Revenue Code (relat- cause of its high marginal rates and its mul- jecting most of this property to estate taxes ing to applicable credit amount) is amended tiple taxation of income. upon the death of the owner. Due to the cap- to read as follows: (6) Abolishing the estate tax would restore ital intensive nature of farming and its low a measure of fairness to the Federal tax sys- ‘‘In the case of estates of The applicable exclusion return on investment, farmers are 15 times tem. Families should be able to pass on the decedents dying, and amount is: more likely to be subject to estate taxes gifts made, during: than other Americans. fruits of labor to the next generation with- 2000 ...... $1,000,000 out realizing a taxable event. (9) As the average age of farmers ap- 2001 ...... $1,500,000 proaches 60 years, it is estimated that a (7) Abolishing the estate tax would benefit 2002 ...... $2,000,000 quarter of all farmers could confront the es- the preservation of family farms. Nearly 95 2003 ...... $2,500,000 percent of farms and ranches are owned by 2004 ...... $5,000,000.’’. tate tax over the next 20 years. The auction- sole proprietors or family partnerships, sub- (b) EFFECTIVE DATE.—The amendment ing of these productive assets to finance tax jecting most of this property to estate taxes made by this section shall apply to the es- liabilities destroys jobs and harms the econ- upon the death of the owner. Due to the cap- tates of decedents dying, and gifts made, omy. ital intensive nature of farming and its low after December 31, 1997. (10) Abolishing the estate taxes would re- return on investment, farmers are 15 times SEC. 4. REPEAL OF FEDERAL TRANSFER TAXES. store a measure of fairness to our Federal more likely to be subject to estate taxes (a) IN GENERAL.—Subtitle B of the Internal tax system. Families should be able to pass than other Americans. Revenue Code of 1986 is repealed. on the fruits of the labor to the next genera- tion without realizing a taxable event. SEC. 3. REPEAL OF FEDERAL TRANSFER TAXES. (b) EFFECTIVE DATE.—The repeal made by subsection (a) shall apply to the estates of (11) Despite this heavy burden on entre- (a) IN GENERAL.—Subtitle B of the Internal preneurs, farmers, and our entire economy, Revenue Code of 1986 is hereby repealed. decedents dying, and gifts and generation- skipping transfers made, after December 31, estate and gift taxes collect only about 1 per- (b) EFFECTIVE DATE.—The repeal made by subsection (a) shall apply to the estates of 2004. cent of our Federal tax revenues. In fact, the (c) TECHNICAL AND CONFORMING CHANGES.— decedents dying, and gifts and generation- estate tax may not raise any revenue at all, The Secretary of the Treasury or the Sec- skipping transfers made, after the date of en- because more income tax is lost from indi- retary’s delegate shall not later than 90 days viduals attempting to avoid estate taxes actment of this Act. after the effective date of this section, sub- (c) TECHNICAL AND CONFORMING CHANGES.— than is ultimately collected at death. mit to the Committee on Ways and Means of The Secretary of the Treasury or the Sec- (12) Repealing estate and gift taxes is sup- the House of Representatives and the Com- retary’s delegate shall, as soon as prac- ported by the White House Conference on mittee on Finance of the Senate a draft of Small Business, the Kemp Commission on ticable but in any event not later than 90 any technical and conforming changes in the days after the date of enactment of this Act, Tax Reform, and 60 small business advocacy Internal Revenue Code of 1986 which are nec- organizations. submit to the Committee on Ways and essary to reflect throughout such Code the Means of the House of Representatives and SEC. 3. INCREASE IN UNIFIED ESTATE AND GIFT changes in the substantive provisions of law TAX CREDIT. the Committee on Finance of the Senate a made by this Act. draft of any technical and conforming (a) IN GENERAL.—The table in section changes in the Internal Revenue Code of 1986 2010(c) of the Internal Revenue Code (relat- S. 77 ing to applicable credit amount) is which are necessary to reflect throughout Be it enacted by the Senate and House of Rep- amended— such Code the changes in the substantive resentatives of the United States of America in (1) by striking ‘‘2000 and 2001’’ and insert- provisions of law made by this Act. Congress assembled, ing ‘‘2000 or thereafter’’, SECTION 1. SHORT TITLE. S. 76 (2) by striking ‘‘$675,000’’ and inserting This Act may be cited as the ‘‘Farmer and ‘‘$5,000,000’’, and Be it enacted by the Senate and House of Rep- Entrepreneur Estate Tax Relief Act of 1999’’. (3) by striking all matter beginning with resentatives of the United States of America in SEC. 2. FINDINGS. the item relating to 2002 and 2003 through Congress assembled, Congress finds the following: the end of the table. SECTION 1. SHORT TITLE. (1) The economy of the United States can- (b) EFFECTIVE DATE.—The amendments This Act may be cited as the ‘‘Estate and not achieve strong, sustained growth with- made by this section shall apply to the es- Gift Tax Phase-Out Act of 1999’’. out adequate levels of savings to fuel produc- tates of decedents dying, and gifts made, SEC. 2. FINDINGS. tive activity. Inadequate savings have been after December 31, 1999. Congress finds the following: shown to lead to lower productivity, stagnat- (1) The economy of the United States can- ing wages and reduced standards of living. S. 78 not achieve strong, sustained growth with- (2) Savings levels in the United States have Be it enacted by the Senate and House of Rep- out adequate levels of savings to fuel produc- steadily declined over the past 25 years, and resentatives of the United States of America in tive activity. Inadequate savings have been have lagged behind the industrialized trad- Congress assembled, shown to lead to lower productivity, stagnat- ing partners of the United States. SECTION 1. INCREASE IN GIFT TAX EXCLUSION. ing wages, and reduced standards of living. (3) These anemic savings levels have con- (a) IN GENERAL.—Section 2503(b) of the In- (2) Savings levels in the United States have tributed to the country’s long-term down- ternal Revenue Code of 1986 (relating to ex- steadily declined over the past 25 years, and ward trend in real economic growth, which clusions from gifts) is amended— have lagged behind the industrialized trad- averaged close to 3.5 percent over the last 100 (1) by striking ‘‘$10,000’’ each place it ap- ing partners of the United States. years but has slowed to 2.4 percent over the pears and inserting ‘‘$25,000’’, (3) These anemic savings levels have con- past quarter century. (2) by striking ‘‘1998’’ in paragraph (2) and tributed to the country’s long-term down- (4) Congress should work toward reforming inserting ‘‘2000’’, and ward trend in real economic growth, which the entire Federal tax code to end its bias (3) by striking ‘‘1997’’ in paragraph (2)(B) averaged close to 3.5 percent over the last 100 against savings. and inserting ‘‘1999’’. January 19, 1999 CONGRESSIONAL RECORD — SENATE S511 (b) EFFECTIVE DATE.—The amendments There is no official record kept, nor is We called this new category ‘‘elec- made by this section shall apply to gifts anyone required to submit the kind of tioneering ads’’. They are the only made after December 31, 1999. information needed to keep such communications addressed, and we de- records. fine them very narrowly and carefully. By Ms. SNOWE (for herself and And lest there be any doubt of the If the ad is not run on television or Mr. JEFFORDS): real intent of these ads, the Annenburg radio; if the ad is not aired within 30 S. 79. A bill to amend the Federal Report found that nearly 87 percent of days of a primary or 60 days of a gen- Election Campaign Act of 1971 to re- them mentioned a candidate for office eral election, if the ad doesn’t mention quire disclosure of certain disburse- by name, and over 41 percent were seen a candidate’s name or otherwise iden- ments made for electioneering commu- by the public as ‘‘pure attack’’ ads— tify him clearly, if it isn’t targeted at nications, and for other purposes; to that’s the highest percentage recorded the candidate’s electorate, or if a group the Committee on Rules and Adminis- among a group that also included Pres- hasn’t spent more than $10,000 in that tration. idential ads, debates, free-time seg- year on these ads, then it is not an ADVANCING TRUTH AND ACCOUNTABILITY IN ments accorded candidates, and news electioneering ad. CAMPAIGN COMMUNICATIONS ACT OF 1999 programs. If it is an item appearing in a news Ms. SNOWE. Mr. President, I rise If anything, not surprisingly, the story, commentary, or editorial dis- today to introduce on behalf of myself problem got worse in the 1997–1998 elec- tributed through a broadcast station, and Mr. JEFFORDS the Advancing Truth tion cycle. The Annenberg Center has it is also not an electioneering ad. and Accountability in Campaign Com- completed their study of this time pe- Plain and simple. munications Act of 1999, or ATACC, riod, and has determined that issue ad If one does run an electioneering ad, which represents an effort to attack spending in the last cycle doubled the two things happen. First, the sponsor the problem of stealth advocacy adver- amount spent in 1995 through 1996—to must disclose the amount spent and tising in federal elections and shine the total between $275 and $340 million. Of the identity of contributors who do- spotlight of disclosure on those who those ads, over 53 percent mentioned nated more than $500 to the group since would attempt to fly under the radar candidates by name during the cycle— January 1 of the previous year. Right screen of our campaign finance laws. a number which rose to over 80 percent now, candidates have to disclose cam- Before I begin, I want to thank and in the final two months. Further, 51.5 paign contributions over $200. Second, commend Senator JEFFORDS for all his percent of issue ads aired after Septem- the ad cannot be paid for by funds from valuable input and hard work in help- ber 1, 1998, were pure attack ads in a business corporation or labor union— ing to craft this legislation, which was terms of their content. At least 77 only voluntary contributions. originally introduced as an amendment groups ran broadcast issue ads in 1997 The clear, narrow wording of the bill last year to the McCain-Feingold Cam- and 1998. is important because it passes two crit- paign Finance Reform Bill. And I want As Norm Ornstein of the American ical First Amendment doctrines that were at the heart of the Supreme to thank Senators MCCAIN and FEIN- Enterprise Institute has stated, Court’s landmark Buckley versus GOLD themselves, who encouraged our ‘‘(These are) conservative number(s), Valeo decision: vagueness and over- efforts. since there is no disclosure of (these) breadth. The rules of this provision are In the past several elections, we’ve media buys or other spending.’’ To put clear. And the requirements are strict- seen a proliferation of advertisements this in perspective, 1998 was the first ly limited to ads run near an election over the airwaves which cloak them- billion dollar election—meaning that that identify a candidate—ads plainly selves in the innocuous guise of ‘‘issue about a quarter of the money spent was intended to convince voters to vote for advocacy’’, or voter education. The on what I call ‘‘stealth advocacy’’ ad- vertising. One quarter of all the money or against a particular candidate. sponsors of these ads would have us be- Nothing in this bill restricts the lieve that they are performing a public spent—which the Annenberg Center es- timates is roughly equivalent to what right of any group to engage in issue service by running these ads, and do advocacy. For example, the following not intend for them to affect the out- candidates themselves spent on their own campaigns—was unaccounted for, ad—which was actually run in 1996— come of federal elections. They claim would be completely unaffected by this that because they do not use words like unreportable and unregulated in any fashion. And, as Norm Ornstein has bill. The text of the ad—which is a pure ‘‘vote for’’, or ‘‘vote against’’, they are issue ad in the true sense of the term— exempt from federal campaign finance pointed out, 1998 was an ‘‘off-year’’, and ‘‘without campaign reform, we can says, ‘‘This election year, America’s laws. They even argue that no one has probably look forward to the $2 billion children need your vote. Our public the right simply to know who is spon- or $3 billion election in 2000, with a schools are our children’s ticket to the soring the ads. half-billion of it disguised as issue ad- future. But education has become just And yet, these ads say things like: vocacy.’’ another target for attack by politi- ‘‘Mr. X promised he’d be different. But Let me explain how this bill will get cians who want huge cuts in education he’s just another Washington politi- to the core of this problem; how it programs. They’re making the wrong cian. Why during the last year alone, works; and why it is much more likely choices. Our children deserve leaders he has taken over $260,000 from to pass court muster than previous at- who will strengthen public education, corporate special interest tempts to get at this issue. not attack it. They deserve the best groups. . . . But is he listening to us The premise of this bill was devel- education we can give them. So this anymore?’’ oped in consultation with noted con- year, vote as if your children’s future I defy anyone to argue, with a stitutional scholars and reformers such depends on it. It does.’’ straight face, that that message is any- as Norm Ornstein; Josh Rosenkrantz, That is not an electioneering ad, and thing other than a blatant attempt to Director of the Brennan Center for Jus- that conclusion is not simply based on influence a federal election. And yet, tice at NYU; and others. The approach perception. It is based on the fact that under current law, any person, labor is a straightforward, two tiered one it does not meet the clearly delineated union, or corporation, has a right to that only applies to advertisements criteria put forth in our bill, and there- run such ads without even disclosing that constitute the most blatant form fore, exists completely outside the the most basic information, such as of electioneering. realm of this legislation. who they are, or how much they are It only applies to ads run on radio or For that matter, nothing prohibits spending. And that is just plain wrong. television, 30 days before a primary and groups from running electioneering During the 1996 elections, the 60 days before a general election, that ads, either. Let me be clear on this: if Annenberg Public Policy Center esti- identify a federal candidate. And only this bill becomes law, any group run- mates that anywhere between $135 mil- if over $10,000 is spent on such ads in a ning issues ads today can still run lion and $150 million was spent by third year. What is required is disclosure of issue ads in the future, with no restric- party groups not associated with can- the ads’ sponsor and major donors, and tions on content. And any group run- didates’ campaigns on such radio and a prohibition on the direct or indirect ning electioneering ads can still run television ads. I say ‘‘estimates’’ be- use of corporation or union money to those ads in the future, again with ab- cause we really don’t know for sure. fund the ads. solutely zero restrictions on content. S512 CONGRESSIONAL RECORD — SENATE January 19, 1999 The argument that will no doubt be I understand the realities, and I know porate and union treasury funds in the leveled by opponents to this approach— that there are concerns on both sides of weeks preceding a primary and general those advocates of secrecy who do not the aisle that whatever measure we election. want the public to know who is financ- may ultimately pass, it must be fair, I would like to begin with a story ing these ads, and for how much—is equitable, and constitutional. that may help my colleagues under- that it is inconsistent with the First This bill passes all three of these stand the need for this legislation, and Amendment of the Constitution. This tests. And it represents one, significant that many of my colleagues may un- is simply not so, and that’s not just my step we might take to ensure that the derstand from their own campaigns. opinion. Constitutional scholars from first elections of the next century—the Two individuals are running for the Stanford Law to Georgia Law to Loy- next millennium—are more open, more Senate and have spent the last few ola Law to Vanderbilt Law have en- fair, and more representative of the months holding debates, talking to the dorsed the approach of this bill. will of the individual. That’s what this voters and traveling around the state. The fact is, the only restrictions in bill is really all about, Mr. President. Both candidates feel that they have in- the bill—namely, the use of union and It’s about putting elections back into formed the voters of their thoughts, corporation treasury money to pay for the hands of individuals by letting views and opinions on the issues, and electioneering ads—are rooted in well- them have the facts they need to make that the voters can use this informa- established case law that has long al- informed decisions, and by ensuring tion to decide on which candidate they lowed for the regulation of the use of that electioneering ads are paid for by will support. such money for electioneering pur- voluntary, individual contributions. Two weeks before the day of the elec- poses. Further, the threshold for dis- That’s all, Mr. President. No plot to tion a group called the People for the closure is more than double what it is subvert the First Amendment. No Truth and the American Way, let’s say, for candidates who receive contribu- scheme to silence any group or person. begins to run television advertisements tions, and absolutely no disclosure is No plan to control what anyone says or which include the picture of one of the required whatsoever from any person when they say it. Just an honest, con- candidates and that candidate’s name. or entity which spends less than stitutionally sound attempt to bring However, these advertisements do not $10,000. And it bears repeating that some honesty and accountability back use the express terms of ‘‘vote for’’ or nothing in this bill affects any printed into electioneering advertising, and re- ‘‘vote against.’’ These advertisements communications in any way, shape, or turn some sense of confidence to the discuss issues such as the candidate’s form—so voter guides are completely American people that their elections drinking, supposed off-shore bank ac- outside the universe of communica- belong to them. I ask my colleagues to counts and the failure of the can- tions that are covered by this measure. join me in supporting this sensible, in- didate’s business. Mr. President, ATACC is a sensible, cremental approach, and join in the The voters do not know who this reasonable approach to attacking a fight to attack secrecy and promote group is, who are its financial backers burgeoning segment of electioneering honesty in campaign advertising. and why they have an interest in this that is making a mockery of our cam- Mr. JEFFORDS. Mr. President, on specific election, and under our current paign finance system. I would ask my this first legislative day of the 106th election law the voters will not find colleagues, how can anyone not be for Congress I rise in the Senate Chamber out. Thus, even though the candidates disclosure? How can anyone say that to express my strong support for the have attempted to provide the voters less information for the public leads to bill Senator SNOWE and I are introduc- with all the information concerning better elections? Don’t the American ing and urge my Senate colleagues to the candidate’s views on the issues, people have the right to know who is join as cosponsors of this important they will be casting their vote lacking paying for these stealth advocacy ads, legislation. critical information concerning these and how much? Throughout the last Congress the advertisements. Apparently, the majority of the Sen- Senate spent many legislative hours Some people may say that voters do ate thought so. Last year, when this debating campaign finance reform. In not need this information. But as measure was approved as an amend- fact, since my election to the House in James Madison said, ‘‘A popular gov- ment and incorporated into the the wake of the Watergate scandal, I ernment without popular information McCain-Feingold legislation, the bill have spent many long hours working is but a prologue to a tragedy or a garnered 52 votes—bringing the major- with my colleagues to craft campaign farce or perhaps both. Knowledge will ity of the Senate on board. Unfortu- finance reform legislation that could forever govern ignorance and a people nately, the will of the majority did not endure the legislative process and sur- who mean to be their own governors ultimately prevail, as we were unable vive a constitutional challenge. We must arm themselves with the power to break the sixty votes necessary to came close in 1994 and last year, and I which knowledge gives.’’ end a threatened filibuster and insti- believe circumstances still remain Mr. President, the ATACC act will tute real, fair and meaningful reform right for enactment of meaningful arm the people with the knowledge in the way in which American elections campaign finance reform during this they need in order to sustain our popu- are financed. Congress. lar government. And the need to arm But we have heard before that it I believe that the irregularities asso- the people with this knowledge is be- can’t be done, only to see the House of ciated with our recent campaigns, and coming greater every year. As my col- Representatives do it. Today, we have especially in the 1996 elections, point league Senator SNOWE has stated, the new members of this body—members out the fact that current election laws amount of money spent on issue advo- who have seen first hand the effects are not being strongly enforced or cacy advertising is increasing over these electioneering ads are having on working to achieve the goals that we time at an alarming rate. In the 1995– campaigns and elections in this coun- all have for campaign finance reform. 1996 election cycle an estimated $135– try, and I invite them to join with Sen- The proof obtained from the hearings 150 million was spent on issue advo- ators JEFFORDS and I in supporting this in both the House and the Senate on cacy, while in the recently completed bill. I would say to them that we, as campaign finance abuses should alone cycle an estimated $275–340 million was candidates and Senators, are account- be enough to motivate my colleagues expended on these types of advertise- able to the people. We’re required to to complete work on this issue in the ments. This is a doubling of the file disclosure reports as candidates. Senate. Without action, these abuses amount of money spent on issue advo- PACs are required to disclose. But hun- will become more pronounced and cacy ads in one election cycle, and I dreds of millions of dollars are spent on widespread as we go from election to fear entering an election cycle that in- these ads without one dime being re- election. cludes a Presidential election that we ported. Not one dime. The Snowe-Jeffords bill, the Advanc- may see at least another doubling of Mr. President, I come to this debate ing Truth and Accountability of Cam- these type of expenditures. as a veteran supporter of campaign fi- paign Communications Act (ATACC), I have long believed in Justice Bran- nance reform. As someone who has will boost disclosure requirements and deis’ statement that, ‘‘Sunlight is said served on Capitol Hill for twenty years, tighten the rule on expenditures of cor- to be the best of disinfectants.’’ The January 19, 1999 CONGRESSIONAL RECORD — SENATE S513 disclosure requirements in the ATACC ing corporate and union spending and Nationwide, an estimated 13 to 16 act are narrow and tailored to provide disclosure rules has been in area that million small businesses represent over the electorate with the important per- the Supreme Court has been most tol- 99 percent of all employers. They also tinent information they will need to erant of regulation. We also strove to employ 52 percent of the workers, and make an informed decision. Informa- make the requirements sufficiently 38 percent of workers in high-tech oc- tion included on the disclosure state- clear and narrow to over come uncon- cupations. Small businesses account ment includes the sponsor of the adver- stitutional claims of vagueness and for virtually all of the net new jobs, tisement, amount spent, and the iden- over breadth. and 51 percent of private sector output. tity of the contributors who donated Mr. President, I wish I could guaran- In my home State of Maine, of the more than $500. Getting the public this tee to my colleagues that these provi- 36,660 businesses with employees in information will greatly help the elec- sions would be held constitutional, but 1997, 97.6 percent of the businesses were torate evaluate those who are seeking as we found out with the Religious small businesses. Maine also boasts an federal office. Freedom Restoration Act, even with estimated 71,000 self-employed persons. Additionally, this disclosure, or dis- near unanimous support, it is difficult In terms of job growth, small busi- infectant as Justice Brandeis puts it, to gauge what the Supreme Court will nesses are credited with all of the net will also help deter actual corruption decide on constitutional issues. How- new jobs in a survey of job growth from and avoid the appearance of corruption ever, I feel that the provisions we have 1992 to 1996. that many already feel pervades our created follow closely the constitu- Small businesses are the most suc- campaign finance system. This, too, is tional roadmap established by the Su- cessful tool we have for job creation. an important outcome of the disclosure preme Court by the decisions in this They provide a substantial majority of requirements of this bill. Getting this area, and that it would be upheld. the initial job opportunities in this information into the public purview I know that campaign finance reform country, and are the original—and fin- would enable the press, the FEC and in- is an areas of diverse viewpoints and est—job training program. Unfortu- terest groups to help ensure that our beliefs. However, I feel that the ATACC nately, as much as small businesses federal campaign finance laws are act offers a constructive and constitu- help our own economy—and the Fed- obeyed. If the public doesn’t feel that tional solution that addresses some of eral Government—by creating jobs and the laws Congress passes in this area the problems that have been expressed building economic growth, government are being followed, this will lead to a concerning our current campaign fi- often gets in the way. Instead of assist- greater level of disillusionment in nance system. The American people are ing small business, Government too their elected representatives. Exposure watching and hoping that we will have often frustrates small business efforts. to the light of day of any corruption by a fair, informative and productive de- Federal regulations create more than this required disclosure will help reas- bate on campaign finance reform. I 1 billion hours of paperwork for small sure our public that the laws will be know that the proposal that Senator businesses each year, according to the followed and enforced. SNOWE and I have put forward will do Small Business Administration. More- While our bill focuses on disclosure, just that. over, because of the size of some of the it will also prohibit corporations and The electorate has grown more and largest American corporations, U.S. unions from using general treasury more disappointed with the tenor of commerce officials too often devote a campaigns over the last few years, and monies to fund these types of election- disproportionate amount of time to the this disappointment is reflected in the eering communications in a defined pe- needs and jobs in corporate America low number of people that actually riod close to an election. Since 1907, rather than in small businesses. federal law has banned corporations participate in what makes this country My legislation will address two prob- from engaging in electioneering. In and democracy great, voting. I feel lems facing our Nation’s small busi- 1947, that ban was extended to prohibit that giving the voters the additional nesses, and I hope it will both encour- information required by our legislation unions from electioneering as well. The age small business expansion and fuel will help dispel some of the disillusion- Supreme Court has upheld these re- job creation. ment the electorate feel with our cam- strictions in order to avoid the delete- One, this legislation will require a paign system and reinvigorate people rious influences on federal elections re- cost analysis legislative proposals be- to participate again in our democratic sulting from the use of money by those fore new requirements are passed on to system. small businesses. Too often, Congress who exercise control over large aggre- In conclusion, the very basis of our approves well-intended legislation that gations of capital. By treating both democracy requires that an informed shifts the costs of programs to small corporations and unions similarly we electorate participate by going to the extend current regulation cautiously polls and voting. The ATACC act will businesses. This proposal will help en- and fairly. I feel that this prohibition, through its disclosure requirements in- sure that these unintended con- coupled with the disclosure require- form our electorate and lead people to sequences are not passed along to small ments, will address many of the con- again participate in our democratic businesses. According to the U.S. Small Business cerns my colleagues from both sides of system. the aisle have raised with regards to Administration, small business owners our current campaign finance laws. By Ms. SNOWE: spend at least 1 billion hours a year Mr. President, I think it is important S. 80. A bill to establish the position filling out government paperwork, at to clarify at this time some of the of Assistant United States Trade Rep- an annual cost that exceeds $100 bil- things that this bill will not do. It will resentative for Small Business, and for lion. Before we place yet another ob- not prevent grass-roots lobbying com- other purposes; to the Committee on stacle in the path of small business job munications, it does not cover printed Finance. creation, we should understand the material, nor require the text or a copy SMALL BUSINESS ENHANCEMENT ACT costs our proposals will impose on of the advertisement to be disclosed. Ms. SNOWE. Mr. President, I rise small businesses. Finally, it does not restrict how much today to introduce legislation designed This bill will require the Director of money can be spent on ads, nor restrict to help America’s small business. This the Congressional Budget Office to pre- how much money a group raises. These legislation will assist small businesses pare for each committee an analysis of points must be expressed early on to by requiring an estimate of the cost of the costs to small businesses that ensure that my colleagues can clearly a bill on small businesses before Con- would be incurred in carrying out pro- understand what we are and are not at- gress enacts the legislation, and by cre- visions contained in new legislation. tempting to do with our legislation. ating an Assistant U.S. Trade Rep- This cost analysis will include an esti- We have taken great care with our resentative for Small Business. mate of costs incurred in carrying out bill to avoid violating the important Small business is the driving force the bill or resolution for a 4-year pe- principles in the First Amendment of behind our economy, and in order to riod, as well as an estimate of the por- our Constitution. This has required us create jobs—both in my home State of tion of these costs that would be borne to review the seminal cases in this Maine and across the Nation—we must by small businesses. This provision will area, including Buckley v. Valeo. Limit- encourage small businesses expansion. allow us to fully consider the impact of S514 CONGRESSIONAL RECORD — SENATE January 19, 1999 our actions on small businesses—and concentrated airspace, the risk of an rity, efficiency, and competition in the through careful planning, we may suc- accident increases. We have a respon- national aviation system. The bill also ceed in avoiding unintended costs. sibility to manage park airspace to would establish a widely-endorsed sys- Two, this legislation will direct the provide for the safe and orderly flow of tem for managing the environmental U.S. Trade Representative to establish traffic. consequences of commercial air tour a position of Assistant U.S. Trade Rep- ‘‘Natural quiet,’’ or the ambient flights over national parks. resentative for Small Business. The Of- sounds of the environment without the fice of the U.S. Trade Representative is intrusion of manmade noise, is a highly As most of my colleagues know, the overburdened, and too often overlooks valued resource for visitors to our na- Commerce Committee worked hard the needs of small business. The new tional parks. As commercial air tour last year to develop a multi-year FAA Assistant U.S. Trade Representative flights increase, their noise also in- reauthorization bill. Following a bipar- will promote exports by small busi- creases, which can impair the oppor- tisan, inclusive, and constructive proc- nesses and work to remove foreign im- tunity for park visitors on the ground ess, we developed a package that pediments to these exports. to enjoy the natural quiet that they among other things would have author- Mr. President, I am convinced that seek and deserve. ized important airport construction this legislation will truly assist small The National Parks Overflights Act grants. The legislation also would have businesses, resulting not only in addi- seeks to promote both safety and natu- instituted a host of safety and security tional entrepreneurial opportunities ral quiet by providing a fair and bal- enhancements. but also in new jobs. I urge my col- anced process for the development of One of the key elements of last year’s leagues to join me in supporting this Air Tour Management Plans at individ- Senate-passed FAA bill was the avia- legislation. ual parks. The FAA Administrator and the Director of the National Park Serv- tion competition and service title. It By Mr. MCCAIN (for himself, Mr. ice are to work cooperatively to de- would have modestly enhanced the ca- FRIST, Mr. ALLARD, and Mr. velop an ATMP through a public proc- pacity at the four slot-controlled air- AKAKA): ess. ports in the country—LaGuardia and S. 81. A bill to authorize the Federal The development of an ATMP will in- JFK in New York, Chicago O’Hare, and Aviation Administration to establish clude the environmental requirements Reagan National. New entrant, low rules governing park overflights; to the of the National Environmental Policy fare carriers have been effectively shut Committee on Commerce, Science, and Act. The bill would also require that out of these key markets, which are Transportation. commercial air tour operators increase critical to sustaining a healthy net- NATIONAL PARKS OVERFLIGHTS ACT their safety standards, specifically by work and giving consumers new low Mr. MCCAIN. Mr. President, I rise meeting FAA Part 135 or Part 121 safe- cost choices. today to introduce the National Parks ty criteria. Senator FRIST and Majority Leader Overflights Act. This legislation in- Certain parks have been dealt with LOTT were instrumental in developing tends to promote air safety and protect individually in the bill because of their these proposals. Senator FRIST in par- natural quiet in our national parks by unique circumstances. Since Grand ticular has been out in front in the ef- providing a process for developing air Canyon overflights are governed by fort to bolster the role that regional tour management plans (ATMP) at legislation that has already been en- those parks. An ATMP at a national acted into law, the Grand Canyon Na- jets play in the overall aviation sys- park would manage commercial air tional Park has been exempted from tem. As everyone who cares about the tour flights over and around that park, the legislation. Alaska is also exempt quality of air service knows, regional and over any Native American lands from the legislation given the vast ex- jets will be integral to expanding and within or adjacent to the park. panse of park land and the unique na- improving service to small and me- I would like to remind my colleagues ture of aviation in the state. The legis- dium-sized communities in the years to that this is the same legislation that lation would prohibit commercial air come. was approved overwhelmingly by the tours of the Rocky Mountain National Unfortunately, special interests Senate last September, as part of the Park. worked to thwart our efforts and killed Wendell H. Ford National Air Trans- Let me conclude by saying that com- these provisions to encourage airline portation System Improvement Act, or mercial air tours provide a legitimate competition. Instead of delivering pro- the Federal Aviation Administration means of experiencing national parks. consumer aviation legislation to the (FAA) reauthorization bill. Today I re- They are particularly important for traveling public, Congress failed to act introduced the FAA reauthorization providing access to the elderly and the after some of the major airlines applied bill that was approved by the Senate disabled. I believe that this legislation pressure against these proposals that last year. Title VI of the bill deals with appropriately balances the rights of all threatened their lock on the market. national parks overflights. park visitors. I hope and expect that Mr. President, the National Parks we can work together toward its swift On the same day that the Senate ap- Overflights Act was developed at the enactment. proved the bill by a vote of 92 to one, recommendation of the National Parks we also appointed conferees. Although Overflights Working Group. The work- By Mr. MCCAIN (for himself, Mr. the House approved its own FAA reau- ing group was established to develop a HOLLINGS, Mr. LOTT, Mr. thorization bill in August of last year, plan for instituting flight restrictions ROCKEFELLER, Mr. FRIST, Mr. the leadership failed to appoint con- over national parks because of the BRYAN, Mr. WYDEN and Mr. ferees. As a result, the two chambers noise and environmental consequences AKAKA): were never given an opportunity to rec- associated with commercial air tours S. 82. A bill to authorize appropria- oncile the two bills. Congress was then of the parks. Environmentalists, as tions for Federal Aviation Administra- forced to include a short-term reau- well as general aviation and air tour tion, and for other purposes; to the thorization of the AIP in the Omnibus Committee on Commerce, Science, and industry representatives, constituted Appropriations Act for fiscal year 1999. Transportation. the membership of the working group. This was a clear failure on the part of The group recommended a consensus THE AIR TRANSPORTATION IMPROVEMENT ACT the 105th Congress. proposal on overflights, which is em- Mr. MCCAIN. Mr. President, I rise bodied in the National Parks Over- today to introduce the Air Transpor- The text of the bill I am introducing flights Act. tation Improvement Act, which would today is nearly identical to the FAA Visitors to our national parks, reauthorize the programs of the Fed- reauthorization bill that the Senate whether by air or through the entrance eral Aviation Administration (FAA), approved overwhelmingly last year. gate, deserve a safe and quality visitor including the Airport Improvement The only changes that have been made experience. The number of air tour Program (AIP). This legislation in- involve a few purely technical correc- flights across the country is on the cludes numerous provisions that will tions and removal of provisions that rise. As additional aircraft operate in help sustain and enhance safety, secu- have already been enacted into law. January 19, 1999 CONGRESSIONAL RECORD — SENATE S515 In last year’s Omnibus Appropria- essentially the same bill that passed other dollar could get us a lot more ca- tions Act, we reauthorized the AIP for the Senate last year, honored the Sen- pacity at our nation’s airports. six months so that this Congress would ator by naming it the Wendell H. Ford In front of us are the daunting future have to act immediately to complete Air Transportation Safety Improve- needs of the aviation system. All of the the work of the last Congress. The AIP ment Act, at the unanimously-en- projections show that we will have 300 is set to expire on March 31, 1999. With dorsed suggestion of Senator TED STE- million more passengers by the year the introduction of this bill, I am ful- VENS. 2009. As much as I would like them all filling my commitment to continue the In stepping into Senator Ford’s to flow through West Virginia, I know reauthorization process where the last shoes, I aim to ensure not only that the that all of our airports will face con- Congress left off in a time frame that aviation needs of West Virginia and straints—money is tight, and a PFC in- ensures the continuation of the federal other rural states and communities are crease will help. How the PEC is struc- airport grant program. secured, but also that the needs of the tured, the types of controls possible, I plan to hold a hearing on this bill nation and of my colleagues’ constitu- and what they are used for, are all dif- and to mark it up as soon as possible. ents are addressed. Certainly there will ficult choices, and I want to work with The heavy lifting has already been be competing interests and sometimes the airports and the carriers to try to done. The bill may undergo some revi- conflicts, but we all must and share in carriers to try to resolve this issue in a sions, especially considering our good the fundamental responsibility to balanced way. fortune to have Senator ROCKEFELLER maintain safety in the skies, to sup- The air traffic control system also appointed as the new ranking member port fully the needs of the aviation sys- needs to be revamped. It is a complex on the Aviation Subcommittee. Even tem and modernization effort, to en- system and each new system requires so, it will not be necessary for us to sure that the industry provides the changes in the cockpit, new procedures start from scratch. As the Commerce service our constituents demand and and new avionics—change, therefore, Committee begins this effort, I look deserve, to facilitate stable funding that cannot happen overnight. GAO re- forward to working again with Sen- sources for our airports, and to be vigi- cently reported that the FAA is mak- ing progress, changing the way it does ators GORTON, HOLLINGS, and ROCKE- lant in opening up markets for our air business and working with the industry FELLER, as well as the rest of my col- carriers worldwide. These are all leagues, on a reauthorization package daunting tasks but we are up to the to figure out what is needed. GAO also that all Senators can support. challenge, and I look forward to work- reports that the FAA will need $17 bil- Mr. President, we must work over ing with the Chairman, and members of lion to complete the modernization ef- the next few months to finish the job the Committee in crafting an aviation fort. Without that degree of funding, we started last year. It is vital that we bill that we can all take pride in. we may not be able to get all we push forward with the important pro- The bill before you is a place to begin want—new computers, new ways to consumer provisions that are included our discussion. move aircraft, and more capacity to in this bill. Last year, consumers lost Last year, the Congress was able to make the system safer. According to out to special interests. This year, I pass only a six-month extension of the the National Civil Aviation Review will use all means at my disposal to en- Airport Improvement Program (AIP), Commission, unless we address this sure that does not happen again. effectively freezing half of the $1.95 bil- problem, we are facing gridlock in the Mr. ROCKEFELLER. Mr. President, lion allocated to the program. Absent a skies. So, funding of the FAA is a critical, today, I join with Senator MCCAIN, reauthorization, our airports and our critical matter. I know Congressman Senator HOLLINGS and others in intro- constituents may lose the ability to SHUSTER wants to take the Airport and ducing legislation to authorize spend- upgrade a runway or start an expansion Airways Trust Fund off budget, but ing for the Federal Aviation Adminis- project that facilitates new business what I found last year is that the offset tration (FAA) through fiscal year 2000. opportunities for our communities—all for taking trust funds can be devastat- As we embark on this new session of a because we’re having trouble figuring ing to totally unrelated programs. new Congress, it is critical that we out a way out of the box we are in. Sen- Right now, I know that the FAA is sup- begin immediately the process of put- ator MCCAIN’s resolve notwithstanding, ported not only by the Trust Fund rev- ting together a comprehensive aviation our House counterparts have already enues, but also a large contribution favorably reported a clean, 6-month ex- bill—to ensure that the FAA is fully from the general fund, which should be tension of the program. Even if we can authorized, to facilitate continued crit- continued in recognition of the impor- reach agreement about our immediate ical airport development, and to ad- tant public benefits provided by avia- needs, I do not want the Senate to pass dress a number of broad aviation policy tion. matters. a bill only to see the program lapse be- Finally, I know that the administra- I want to make clear at the outset cause our House colleagues refuse to tion will be submitting its legislative that I join as a cosponsor of this bill as consider anything other than a clean, proposal to us within the next few a starting point. Senator MCCAIN plans short-term extension, before the March weeks. We need to take a careful look to pursue vigorously a comprehensive deadline, saving the major issues and a at those recommendations, and sit bill, and that will be our first order of long-term bill for later in the year. The down with Secretary Slater and Ad- business, but haste may not allow us to blame-game that would ensue would ministrator Garvey to develop a blue do all that we want and have a respon- only harm the citizens who sent us print for the future. We have an oppor- sibility to do, particularly if the House here. We can get more slots, we can tunity this year to make some real continues to pursue its own clean, 6- work to improve service to small com- changes. I do not want it to pass us by. month reauthorization bill, and then a munities, we can make sure the FAA long-term bill. I am hopeful that we has the ability to move forward with By Mr. MCCAIN (for himself, Mr. will accomplish our objectives expedi- its modernization plans, but it will not HOLLINGS, Mr. LOTT, Mr. tiously, but I see any number of hur- happen overnight. ROCKEFELLER, Mr. FRIST, Mr. dles in our path and believe that in the Let me give you but one example. BRYAN, Mr. WYDEN, Mr. AKAKA, Senate, too, we may need to pursue a Senator GORTON last year offered an Mr. GORTON, and Mr. DORGAN): short-term extension and then give amendment in the Commerce Commit- S. 82. A bill to authorize appropria- this legislation the consideration it is tee that would have raised the pas- tion for Federal Aviation Administra- due. senger facility charge (PFC) from $3 tion, and for other purposes; to the As my colleagues know, I have the per enplanement to $4. I supported Sen- Committee on Commerce, Science, and honor in this Congress of following in ator GORTON. I expect that he will Transportation. the great foot steps of Wendell Ford, again try to raise the PFC, and the Ad- AIR TRANSPORTATION IMPROVEMENT ACT who served this body for 24 years, and ministration has indicated that they Mr. HOLLINGS. Mr. President: As served as Chairman and Ranking Mem- will propose an increase as well. This is the 106th Congress begins, we have to ber of the Aviation Subcommittee for a tough issue, pitting the carriers address unfinished business first. As as long as any of us can remember. In against the airports, and letting some many Senators know, the vitally im- fact, the bill being introduced today, claim that it is a new tax. However, an- portant legislation to reauthorize the S516 CONGRESSIONAL RECORD — SENATE January 19, 1999 Federal Aviation Administration highest air fares in the country. I did One provision of this legislation of (FAA) and the Airport Improvement not realize we were 5th, a dubious particular interest to me, and many Program (AIP) passed in September by honor, but I knew they were high. We others, is the provision related to the a vote of 92–1. For a variety of reasons have a deregulated air transportation Reagan Washington National Airport negotiations between the House and system, dependent upon mega-carriers ‘‘perimeter rule.’’ Senate unfortunately resulted in only for service, and beholden to them on Codified in 1986, the National ‘‘perim- a 6-month extension, expiring at the fares. Without a hub system aggregat- eter rule’’ limits non-stop flights serv- end of March of this year. ing traffic, small communities would ing National to destinations within The bill being introduced today is an not receive the service they do today. 1250 miles of the airport. Originally en- effort to reauthorize the programs of Yet, the same ability allows the car- acted to promote the development of the Federal Aviation Administration riers to place the small towns at their Dulles Airport as the region’s long- for two years. In today’s global econ- mercy. Our economy and ability to haul carrier, the ‘‘perimeter rule’’ has omy, adequate airport facilities are a grow, to attract new businesses, are long outlived its original justification, critical component of any economic de- now highly dependent upon those same and remains today a significant barrier velopment program. The FAA’s Airport carriers. A low cost carrier may come to competition in a very competitive Improvement Program plays a central into a market, cause a ripple in lower- aviation industry. role in ensuring that communities have ing the fares, and then be driven out. While the justification for the ‘‘pe- adequate airport facilities. For FY We had that with Air South. Getting rimeter rule’’ has long since faded, it 1998, the FAA received $1.9 billion. For service to one of the four slot-con- continues to unfairly limit service to FY 1999, the FAA would have received trolled airports, while important for communities outside of the 1250 mile $1.95 billion. Instead, the agency will that route, will not result in lower air perimeter. Communities like Las receive only half of that amount, un- fares for the rest of the markets. The Vegas, a community that desperately less we pass either a short term bill or average may drop overall, but the sta- needs additional air service, are denied a long term extension of the program. tistics do not then tell the real story. access to a very significant airport. In One course we know can work quickly. Determining how we address this prob- addition, air carriers which happen to The other course is more challenging. lem will be difficult, but it must be operate hubs located outside of the pe- While it is critically important that done. rimeter face a very serious competitive we work together to pass this vital leg- There also are a number of issues im- disadvantage. On numerous occasions, islation, I do want to raise an issue of portant to aviation employees and oth- the General Accounting Office has fundamental importance. That is truth ers that must be addressed as we move identified the ‘‘perimeter rule’’ as a in budgeting. I have supported taking through the legislative process. For ex- barrier to entry in the Washington, DC trust funds out of the unified Federal ample, issues involving foreign repair air service market. budget for many years. This year, stations must be examined, and the bill Simply put, the ‘‘perimeter rule’’ there may be an opportunity to actu- includes a task force to address this should be repealed. Nevadans, and ally make it happen. What is good for issue. FAA employees must once again other Westerners, deserve the same ac- highways is good for aviation. At the be granted access to the Merit System cess to our nation’s capital city as end of FY 1998, the Airport and Airway Protection Board and a Universal Ac- those in the East. Continuing this dis- Trust Fund uncommitted surplus was cess System must be authorized. Whis- criminatory, artificial barrier to com- $4.339 billion, according to the Congres- tle-blower protection is another impor- petition creates major inequities in our sional Budget Office. It is projected to tant issue. I look forward to working national transportation system. rise to $13.419 billion by the end of FY with Chairman MCCAIN, Chairman GOR- The legislation we are introducing 2000 and to $79.325 billion by FY 2008. TON, and Ranking Member ROCKE- today, unfortunately, does not repeal We are collecting the taxes, but are not FELLER toward meeting these objec- the ‘‘perimeter rule.’’ Instead, like the giving people what they expect, what tives and ensuring that our final prod- legislation passed last year by the Sen- they paid for, or what they deserve. uct is a bill that enjoys the broad sup- ate, the legislation grants limited ex- We know that the FAA needs money port of the aviation community. emptions from the perimeter rule for to buy new computers and to use sat- The comprehensive bill I am co-spon- up to 12 additional slots a day at Wash- ellite technology. We can take it from soring today may not be completed for ington National. Last year, in the in- the existing revenues, while continuing many months, and we may have to pass terest of compromise, I supported this the general fund contribution, or we a short term extension to make sure approach. I continue to be concerned, can limp along, giving the FAA a por- that the money for airports does not however, that the 12 new, outside the tion of what we all know it needs. If we get tied up. Nevertheless, I know that perimeter slots, if enacted, will be in- do that there are consequences, and the the Chairman is anxious to get us all sufficient to truly address the competi- fault is ours, not the agency’s. It is moving, so let the debate begin and let tive problems created by the ‘‘perim- that simple. us move forward expeditiously in order eter rule.’’ While I support Chairman There are difficult problems facing to fund these critically important pro- MCCAIN’s attempt to reach consensus the 106th Congress. Our constituents grams. on this issue, I am hopeful that last are demanding reasonable fares. Com- Mr. BRYAN. Mr. President, I am year’s approach can be further refined petition can work well to give us rea- pleased to join Chairman MCCAIN today to create additional opportunities for sonable fares, but it has also created as a cosponsor of the Air Transpor- Washington National service from be- unfortunate anomalies. Look around tation Improvement Act. As Senator yond the 1250 mile perimeter, while at the country—in the 1980’s, the Depart- MCCAIN has indicated, this legislation the same time recognizing the inter- ment of Transportation approved every is exactly the same as legislation ap- ests of those communities within the single merger that was proposed. Now proved by the Senate last year by a current perimeter, as well as Northern we have a consolidated industry, with vote of 99–1. Virginia. the big 3 air carriers accounting for Passing legislation to extend the Air- I look forward to working with the nearly 55–60% of the market, and the port Improvement Program needs to be Chairman, and other members of the Northwest-Continental alliance ac- among our highest priorities for early Commerce Committee, on this impor- counting for another 16–17%. action in this Congress. While I do not tant legislation. Over the years, I have asked the Gen- support every provision of this legisla- eral Accounting Office to look at fares tion, it was a reasonable compromise, By Ms. SNOWE: at small and medium hubs, places like which enjoyed nearly unanimous sup- S. 90. A bill to establish reform cri- Charleston, S.C. They reported that port in the Senate last year. As pres- teria to permit payment of United fares were in fact higher, on average at sure continues to increase on our na- States arrearages in assessed contribu- Charleston, at Greenville, and many tional aviation system, and with the tions to the United Nations; to the other small communities. Last week, looming Y2K problem, we need to act Committee on Foreign Relations. the Department of Transportation re- quickly to ensure continued improve- ported that Charleston had the 5th ments in air safety and efficiency. By Ms. SNOWE: January 19, 1999 CONGRESSIONAL RECORD — SENATE S517 S. 91. A bill to restrict intelligence not be included in our mandatory dues budget to grow the U.N. bureaucracy sharing with the United Nations; to the for membership. This reform can be far beyond what is needed to respond to Committee on Foreign Relations. achieved without a revision in the U.N. real world problems. The small profes- UNITED NATIONS REFORM LEGISLATION Charter. sional staff of the U.N. Secretariat now Ms. SNOWE. Mr. President, today I Finally, in the fifth year the Presi- approaches 18,000—counting the pro- am submitting two pieces of legislation dent would have to certify that a major liferation of consultants and contract to address some of the most critical U.N. consolidation plan has been ap- employees—and the staff of the U.N. issues affecting our relations with the proved and implemented. This plan system worldwide now exceeds 53,000. United Nations—the U.S. arrearage in must entail a significant reduction in Too many nations simply do not find financial contributions to the United staff and an elimination of the ramp- a compelling need for efficiency and Nations, and sharing of intelligence in- ant duplication, overlap, and lack of budgetary restraint in the U.N. system. formation with the U.N. coordination that exists throughout Of the U.N.’s 185 member nations, a The first bill, the United Nations Re- the U.N. system. near-majority are assessed at the mini- form Act is a bill that I have been Clearly, there is an urgent need to mum .01 percent rate, paying essen- working on for several years beginning turn around the United Nations’ dan- tially nothing toward U.N. budget. The in my former capacity as chair of the gerous slide into constant crisis, which top ten assessed countries—United Foreign Relations Subcommittee on could ultimately threaten the organi- States, Japan, Germany, France, Rus- International Operations. With the zation’s usefulness as an important sia, Britain, Italy, Canada, Spain and United Nations now entering its second tool for addressing world problems. I Brazil—are billed for almost 80 percent half-century, the question being raised am convinced that this can only be of the U.N. budget, with the United is not whether the United Nations can achieved through the kind of bold re- States paying more than any other continue its growth for another 50 form agenda that is set forth in this country. In just 10 years of supposed years, but whether it can survive as an legislation. zero-growth budgets, the U.N.’s budget important international institution in Mr. President, I believe it is useful doubled. Over the last two decades, the the short term. for us to look back on the original pur- U.N.’s budget has tripled. I believe we must genuinely restore a pose of the United Nations, as it was There are those who argue that all of bipartisan consensus on the United Na- envisioned 51 years ago. The United the U.N.’s problems come from the tions within Congress and among the Nations was created from the ashes of United States. But the United Nation’s American people. That is the intent of World War II, with the hope of avoiding difficulties with the United States this legislation, which sets reasonable future world-wide conflagrations arise from these deeply rooted prob- and achievable reform criteria for the through international cooperation. The lems within the U.N. structure itself. United Nations, linked to a 5-year re- main focus for this mission was the Se- Even many supporters of the United payment plan for the arrearages that curity Council, the only entity empow- Nations have characterized today’s have build up on the U.N. system. ered under the U.N. Charger to act on U.N. system as bloated, inefficient, du- The plan would set up a five-step/ the great questions of world peace. The plicative, and disorganized. For in- five-year process under which the General Assembly was intended to be a stance, Canadian businessman and six- President would each year have to cer- forum for debate on any issue that any time U.N. Under-Secretary-General tify that specific reform guideposts nation wanted to bring before the as- Maurice Strong has stated that the have been met at the United Nations, sembled nations of the world. The U.N. United Nations could work better than permitting payment each year of one- Secretariat was to be a small profes- it does today with less than half as fifth of outstanding U.S. arrearages. sional staff needed to support the ac- many people. In the first year, the President would tivities of the Security Council and The surprising thing is that among have to certify that a hard freeze zero General Assembly. serious analysts of the United Nations nominal growth budget at the United The U.N. system was also to conduct there is remarkable agreement on what Nations had been maintained and that specific activities in technical coopera- needs to be done. The U.N. system budgetary transparency at the world tion, such as those undertaken by the needs to be significantly reduced in body had been enhanced through open- International Civil Aviation Organiza- size and needs true consolidation ing up the United Nations to member tion and the International Tele- among its far-flung, duplicative ele- State auditing and fully funding the communications Union. Finally, the ments. The budget process needs simi- new U.N. inspector general office. United Nations was to have an impor- larly dramatic reform. The United Na- In the second year, the President tant roe in responding to international tions needs to concentrate on a few key would have to certify that U.S. rep- humanitarian crises. Most critical is achievable missions—security, humani- resentation had been restored to a key the work of the U.N. High Commis- tarian relief, purely technical coopera- U.N. budgetary oversight body the Ad- sioner for Refugees, who today protects tion—and refrain from its proliferating visory Committee on Administrative millions of the world’s most vulnerable exercises in internal nation-building and Budgetary Questions [ACABQ]. men, women, and children—particu- and grandiose missions of global norm- In the third year, the President larly women and children, who com- setting. All of these basic reform needs would have to certify that a long- prise 80 percent of the world’s refugees. have been addressed in the U.N. reform standing U.N. peacekeeping reform Regrettably, the United Nations sys- legislation I am introducing today. goal had been achieved. This reform tem that exists today falls short of the This legislation, I believe, will go a would ensure that the United States intentions of its founders. There are long way toward setting a new course receives full credit or reimbursement two interrelated, fundamental prob- in our relations with the United Na- for the very substantial logistical and lems with U.N. system. One is that tions. If we in Congress fail to rise to in-kind support our military provides there are those who attempted to use the challenge; if the U.N. attempts to to assessed U.N. peacekeeping mis- the world organization to advance defend an unsustainable status quo; if sions. agendas that frankly do not reflect the Administration’s new foreign pol- In the fourth year, the President world realities. The more the United icy team does not reach out to Con- would have to certify that a significant Nations is used to transcend what some gress to achieve a genuine bipartisan reform in the United Nations’ budget see as the harsh realities of the world consensus on the need for U.N. reform; process had been achieved. This reform and its Nation-State system, the less if the U.N.’s dangerous slide to expen- would be to divide the U.N. regular relevant the United Nations becomes sive irrelevance continues, then we will budget into an assessed core budget to the real world in which we all live. have lost a unique opportunity for re- and a voluntary program budget. The Closely related has been the massive form. If this should happen, it is not at source of much of the United Nations’ and uncoordinated growth of the all clear to me whether such an oppor- problems stems from the fact that the United Nations and its specialized tunity will soon return. United Nations’ assessed budget is in- agencies. The U.N. General Assembly As a complement to my U.N. reform creasingly used for development pro- and its related bodies in the specialized bill, I am also introducing this U.N.-re- grams and other activities that should agencies have used the tool of the lated bill which I sponsored in the last S518 CONGRESSIONAL RECORD — SENATE January 19, 1999 two Congresses to protect U.S. intel- Mr. President, our most recent expe- pletion of all thirteen individual appro- ligence information which is shared rience with the Omnibus Consolidated priations bills to fully fund the govern- with the United Nations or any of its and Emergency Supplemental Appro- ment. affiliated organizations by requiring priations Act shows the need for a bi- The Congressional Budget Office’s re- that procedures for protecting intel- ennial appropriations and budget proc- cent report on unauthorized appropria- ligence sources and methods are in ess. That one bill clearly demonstrated tions shows that for fiscal year 1999, 118 place at the United Nations that are at Congress is incapable of completing the laws authorizing appropriations have least as stringent as those maintained budget, authorizing, and appropria- expired. These laws cover over one- by countries with which the United tions process on an annual basis. That third or $102.1 billion of appropriations States regularly shares similar types of 4,000 paged bill contained 8 of the regu- for non-defense programs. Another 10 information. This requirement may be lar appropriations bills, $9 billion in laws authorizing non-defense appro- waived by the President for national revenue provisions, $21.4 billion in priations will expire at the end of fiscal security purposes but only on a case by ‘‘emergency’’ spending, and 40 mis- year 1997, representing $10.4 billion case basis and only when all possible cellaneous funding and authorization more in unauthorized non-defense pro- measures for protecting the informa- provisions. grams. tion have been taken. Congress should now act to stream- We have met the statutory deadline This legislation grew out of my con- line the system by moving to a two- to complete a budget resolution only cern about reports of breaches of U.S. year, or biennial, budget process. This three times since 1974. In 1995, we broke classified material by the United Na- is the most important reform we can the Senate record for the most roll call tions in 1993, 1994, and in 1995 when the enact to streamline the budget process, votes cast in a day on a budget rec- United Nations pulled out of Somalia. I to make the Senate a more delibera- onciliation bill. The Senate conducted am pleased to note that some attention tive and effective institution, and to 39 consecutive roll call votes that day, has been paid by this body to the prob- make us more accountable to the beginning at 9:29 in the morning and lems that can result when U.S. intel- American people. finishing up at 11:59 that night. While we have made a number of im- ligence information is shared with Mr. President, moving to a biennial provements in the budget process, the international bodies. Condition 5 of the budget and appropriations process en- current annual process is redundant resolution of ratification for the Chem- joys very broad support. President and inefficient. The Senate has the ical Weapons Convention, which pro- Clinton supports this bill. Presidents same debate, amendments and votes on tects U.S. intelligence shared with the Reagan and Bush also proposed a bien- the same issue three or four times a Organization for the Protection of nial appropriations and budget cycle. year—once on the budget resolution, Chemical Weapons, was based on my Leon Panetta, who served as White again on the authorization bill, and fi- intelligence-sharing legislation. House Chief of Staff, OMB Director, nally on the appropriations bill. This legislation, I believe, will go a and House Budget Committee Chair- I recently asked the Congressional long way toward addressing the prob- man, has advocated a biennial budget Research Service (CRS) to update and lems we have witnessed in the past since the late 1970s. Former OMB and expand upon an analysis of the amount concerning intelligence information CBO Director Alice Rivlin has called of time we spend on the budget. CRS sharing with the U.N. for a biennial budget the past two dec- looked at all votes on appropriations, Mr. President, I urge my colleagues ades. Both of the Senate Leaders sup- revenue, reconciliation, and debt limit to consider the legislation I am intro- port this legislation. And, at the end of measures as well as budget resolutions. ducing today as the best course for re- last year, 37 Senators wrote our two CRS then examined any other vote storing the bipartisan consensus in this Senate Leaders calling for quick action dealing with budgetary levels, Budget country on the United Nations. I urge to pass legislation to convert the budg- Act waivers, or votes pertaining to the my colleagues to join me in supporting et and appropriations process to a two- budget process. Beginning with 1980, this legislation. year cycle. budget related votes started dominat- The most recent comprehensive stud- By Mr. DOMENICI (for himself, ing the work of the Senate. In 1996, 73 ies of the federal government and the percent of the votes the Senate took Mr. THOMPSON, Mr. LIEBERMAN, Congress have recommended this re- were related to the budget. Mr. THOMAS, Ms. SNOWE, Mr. form. The Vice President’s National If we cannot adequately focus on our ROTH, Mr. GRASSLEY, Mr. Performance Review and the 1993 Joint duties because we are constantly de- GRAMM, Mr. NICKLES, Mr. ABRA- Committee on the Reorganization of bating the budget in the authorization, HAM, Mr. FRIST, Mr. GRAMS, Mr. Congress both recommended a biennial budget, and appropriations process, SMITH or Oregon, Mr. MCCAIN, appropriations and budget cycle. just imagine how confused the Amer- Mr. KYL, Mr. LUGAR, and Ms. A biennial budget will dramatically ican public is about what we are doing. COLLINS): improve the current budget process. The result is that the public does not S. 92. A bill to provide for biennial The current annual budget process is understand what we are doing and it budget process and a biennial appro- redundant, inefficient, and destined for breeds cynicism about our government. priations process and to enhance over- failure each year. Look at what we Under the legislation I am introduc- sight and the performance of the Fed- struggle to complete each year under ing today, the President would submit eral Government; to the Committee on the current annual process. The annual a two-year budget and Congress would the Budget and the Committee on Gov- budget process consumes three years: consider a two-year budget resolution ernmental Affairs, jointly, pursuant to one year for the Administration to pre- and 13 two-year appropriation bills dur- the order of August 4, 1977, with in- pare the President’s budget, another ing the first session of a Congress. The structions that if one Committee re- year for the Congress to put the budget second session of the Congress would be ports, the other Committee have thirty into law, and the final year to actually devoted to consideration of authoriza- days to report or be discharged. execute the budget. tion bills and for oversight of govern- BIENNIAL BUDGETING AND APPROPRIATIONS ACT Today, I want to focus just on the ment agencies. Mr. DOMENICI. Mr. President, on be- Congressional budget process, the proc- Most of the arguments against a bi- half of Senator THOMPSON, the distin- ess of annually passing a budget resolu- ennial budget process will come from guished Chairman of the Governmental tion, authorization legislation, and 13 those who claim we cannot predict or Affairs Committee, Senator appropriation bills. The record clearly plan on a two year basis. For most of LIEBERMAN, the distinguished Ranking shows that last year’s experience was the budget, we do not actually budget Member of the Governmental Affairs nothing new. Under the annual process, on an annual basis. Our entitlement Committee and 13 other Senators, I we consistently fail to complete action and revenue laws are under permanent rise to introduce the ‘‘Biennial Budget on the 13 appropriations bills, to au- law and Congress does not change these and Appropriations Act,’’ a bill to con- thorize programs, and to meet our law on an annual basis. The only com- vert the budget and appropriations deadlines. ponent of the budget that is set in law process to a two-year cycle and to en- Since 1950 Congress has only twice annually are the appropriated, or dis- hance oversight of federal programs. met the fiscal year deadline for com- cretionary, accounts. January 19, 1999 CONGRESSIONAL RECORD — SENATE S519 Mr. President, the most predictable Budgeting and Appropriations Act be (1) BUDGET RESOLUTION.—Section 3(4) of category of the budget are these appro- made a part of the RECORD along with such Act (2 U.S.C. 622(4)) is amended by priated, or discretionary, accounts of a copy of the bill. striking ‘‘fiscal year’’ each place it appears the federal government. I recently There being no objection, the mate- and inserting ‘‘biennium’’. (2) BIENNIUM.—Section 3 of such Act (2 asked CBO to update an analysis of dis- rials were ordered to be printed in the U.S.C. 622) is further amended by adding at cretionary spending to determine those RECORD, as follows: the end the following new paragraph: programs that had unpredictable or S. 92 ‘‘(11) The term ‘biennium’ means the pe- volatile funding needs. CBO found that Be it enacted by the Senate and House of Rep- riod of 2 consecutive fiscal years beginning only 4 percent of total discretionary resentatives of the United States of America in on October 1 of any odd-numbered year.’’. funding fell into this category. Most of Congress assembled, (c) BIENNIAL CONCURRENT RESOLUTION ON THE BUDGET.— SECTION 1. SHORT TITLE. this spending is associated with inter- (1) CONTENTS OF RESOLUTION.—Section This Act may be cited as the ‘‘Biennial national activities or emergencies. Be- 301(a) of such Act (2 U.S.C. 632(a)) is Budgeting and Appropriations Act’’. cause most of this funding cannot be amended— predicted on an annual basis, a biennial SEC. 2. REVISION OF TIMETABLE. (A) in the matter preceding paragraph (1) budget is no less deficient than the cur- Section 300 of the Congressional Budget by— Act of 1974 (2 U.S.C. 631) is amended to read (i) striking ‘‘April 15 of each year’’ and in- rent annual process. My bill does not as follows: preclude supplemental appropriations serting ‘‘May 15 of each odd-numbered year’’; ‘‘TIMETABLE (ii) striking ‘‘the fiscal year beginning on necessary to meet these emergency or ‘‘SEC. 300. (a) IN GENERAL.—Except as pro- October 1 of such year’’ the first place it ap- unanticipated requirements. vided by subsection (b), the timetable with pears and inserting ‘‘the biennium beginning Mr. President, in 1993 I had the honor respect to the congressional budget process on October 1 of such year’’; and to serve as co-Chairman on a Joint for any Congress (beginning with the One (iii) striking ‘‘the fiscal year beginning on Committee that studied the operations Hundred Seventh Congress) is as follows: October 1 of such year’’ the second place it of the Congress. Senator BYRD testified appears and inserting ‘‘each fiscal year in before that Committee that the in- such period’’; creasing demands put on us as Sen- (B) in paragraph (6), by striking ‘‘for the fiscal year’’ and inserting ‘‘for each fiscal ators has led to our ‘‘fractured atten- year in the biennium’’; and tion.’’ We simply are too busy to ade- ‘‘First Session (C) in paragraph (7), by striking ‘‘for the quately focus on the people’s business. ‘‘On or before: Action to be completed: first fiscal year’’ and inserting ‘‘for each fis- This legislation is designed to free up First Monday in February ...... President submits budget recommenda- cal year in the biennium’’. tions. time and focus our attention, particu- February 15 ...... Congressional Budget Office submits re- (2) ADDITIONAL MATTERS.—Section 301(b)(3) larly with respect to the oversight of port to Budget Committees. of such Act (2 U.S.C. 632(b)) is amended by Not later than 6 weeks after Committees submit views and estimates striking ‘‘for such fiscal year’’ and inserting federal programs and activities. budget submission. to Budget Committees. Frankly, the limited oversight we are April 1 ...... Budget Committees report concurrent reso- ‘‘for either fiscal year in such biennium’’. lution on the biennial budget. (3) VIEWS OF OTHER COMMITTEES.—Section now doing is not as good as it should May 15 ...... Congress completes action on concurrent 301(d) of such Act (2 U.S.C. 632(d)) is amended be. We have a total of 34 House and resolution on the biennial budget. May 15 ...... Biennial appropriation bills may be con- by inserting ‘‘(or, if applicable, as provided Senate standing authorizing commit- sidered in the House. by section 300(b))’’ after ‘‘United States tees and these committees are increas- June 10 ...... House Appropriations Committee reports Code’’. last biennial appropriation bill. ingly crowded out of the legislative June 30 ...... House completes action on biennial appro- (4) HEARINGS.—Section 301(e)(1) of such Act process. Under a biennial budget, the priation bills. (2 U.S.C. 632(e)) is amended by— August 1 ...... Congress completes action on reconcili- (A) striking ‘‘fiscal year’’ and inserting second year of the biennium will be ex- ation legislation. October 1 ...... Biennium begins. ‘‘biennium’’; and clusively devoted to examining federal (B) inserting after the second sentence the programs and developing authorization ‘‘Second Session ‘‘On or before: Action to be completed: following: ‘‘On or before April 1 of each odd- legislation. The calendar will be free of February 15 ...... President submits budget review. numbered year (or, if applicable, as provided the budget and appropriations process, Not later than 6 weeks after Congressional Budget Office submits re- by section 300(b)), the Committee on the President submits budget port to Budget Committees. giving these committees the time and review. Budget of each House shall report to its opportunity to provide oversight, re- The last day of the session .... Congress completes action on bills and House the concurrent resolution on the resolutions authorizing new budget au- budget referred to in subsection (a) for the view and legislate changes to federal thority for the succeeding biennium. programs. Oversight and the authoriza- biennium beginning on October 1 of that year.’’. tion should be an ongoing process, but ‘‘(b) SPECIAL RULE.—In the case of any first session of Congress that begins in any year (5) GOALS FOR REDUCING UNEMPLOYMENT.— a biennial appropriations process will immediately following a leap year and dur- Section 301(f) of such Act (2 U.S.C. 632(f)) is provide greater opportunity for legisla- ing which the term of a President (except a amended by striking ‘‘fiscal year’’ each place tors to concentrate on programs and President who succeeds himself) begins, the it appears and inserting ‘‘biennium’’. policies in the second year. following dates shall supersede those set (6) ECONOMIC ASSUMPTIONS.—Section We also build on the oversight proc- forth in subsection (a): 301(g)(1) of such Act (2 U.S.C. 632(g)(1)) is ess by incorporating the new require- amended by striking ‘‘for a fiscal year’’ and ments of the Government Performance inserting ‘‘for a biennium’’. and Results Act of 1993 into the bien- (7) SECTION HEADING.—The section heading of section 301 of such Act is amended by nial budget process. The primary objec- striking ‘‘ANNUAL’’ and inserting ‘‘BIEN- ‘‘First Session tive of this law is to force the federal NIAL’’. government to produce budgets focused ‘‘On or before: Action to be completed: First Monday in April ...... President submits budget recommenda- (8) TABLE OF CONTENTS.—The item relating on outcomes, not just dollars spent. tions. to section 301 in the table of contents set Mr. President, a biennial budget can- April 20 ...... Committees submit views and estimates forth in section 1(b) of such Act is amended to Budget Committees. not make the difficult decisions that May 15 ...... Budget Committees report concurrent reso- by striking ‘‘Annual’’ and inserting ‘‘Bien- must be made in budgeting, but it can lution on the biennial budget. nial’’. provide the tools necessary to make June 1 ...... Congress completes action on concurrent (d) COMMITTEE ALLOCATIONS.—Section 302 resolution on the biennial budget. is amended— much better decisions. But, under the July 1 ...... Biennial appropriation bills may be con- sidered in the House. (1) in subsection (a)(1) by striking ‘‘for the current annual budget process we are July 20 ...... House completes action on biennial appro- first fiscal year of the resolution,’’ and in- constantly spending the taxpayers’ priation bills. serting ‘‘for each fiscal year in the biennium, August 1 ...... Congress completes action on reconcili- money instead of focusing on how best ation legislation. for at least each of 4 ensuing fiscal years,’’; and most efficiently we should spend October 1 ...... Biennium begins.’’. (2) in subsection (f)(1), by striking ‘‘for a the taxpayers’ money. By moving to a SEC. 3. AMENDMENTS TO THE CONGRESSIONAL fiscal year’’ and inserting ‘‘for a biennium’’; biennial budget cycle, we can plan, BUDGET AND IMPOUNDMENT CON- (3) in subsection (f)(1), by striking ‘‘first budget, and appropriate more effec- TROL ACT OF 1974. fiscal year’’ and inserting ‘‘each fiscal year (a) DECLARATION OF PURPOSE.—Section 2(2) of the biennum’’; tively, strengthen oversight and watch- of the Congressional Budget and Impound- (4) in subsection (f)(2)(A), by striking ‘‘first dog functions, and improve the effi- ment Control Act of 1974 (2 U.S.C. 621(2)) is fiscal year’’ and inserting ‘‘each fiscal year ciency of government agencies. amended by striking ‘‘each year’’ and insert- of the biennium’’; and Mr. President, I ask unanimous con- ing ‘‘biennially’’. (5) in subsection (g)(1)(A), by striking sent that a description of the Biennial (b) DEFINITIONS.— ‘‘April’’ and inserting ‘‘May’’. S520 CONGRESSIONAL RECORD — SENATE January 19, 1999

(e) SECTION 303 POINT OF ORDER.— (l) MDA POINT OF ORDER.—Section 312(c) of in the biennium for which the budget is sub- (1) IN GENERAL.—Section 303(a) of such Act the Congressional Budget Act of 1974 (2 mitted’’. (2 U.S.C. 634(a)) is amended by striking ‘‘first U.S.C. 643) is amended— (8) TAX EXPENDITURES.—Section 1105(a)(16) fiscal year’’ and inserting ‘‘each fiscal year (1) by striking ‘‘for a fiscal year’’ and in- of title 31, United States Code, is amended by of the biennium’’. serting ‘‘for a biennium’’; striking ‘‘the fiscal year’’ and inserting (2) EXCEPTIONS IN THE HOUSE.—Section (2) in paragraph (1), by striking ‘‘first fis- ‘‘each fiscal year in the biennium’’. 303(b)(1) of such Act (2 U.S.C. 634(b)) is cal year’’ and inserting ‘‘either fiscal year in (9) FUTURE YEARS.—Section 1105(a)(17) of amended— the biennium’’; title 31, United States Code, is amended— (A) in subparagraph (A), by striking ‘‘the (3) in paragraph (2), by striking ‘‘that fis- (A) by striking ‘‘the fiscal year following budget year’’ and inserting ‘‘the biennium’’; cal year’’ and inserting ‘‘either fiscal year in the fiscal year’’ and inserting ‘‘each fiscal and the biennium’’; and year in the biennium following the bien- (B) in subparagraph (B), by striking ‘‘the (4) in the matter following paragraph (2), nium’’; fiscal year’’ and inserting ‘‘the biennium’’. by striking ‘‘that fiscal year’’ and inserting (B) by striking ‘‘that following fiscal year’’ (3) APPLICATION TO THE SENATE.—Section ‘‘the applicable fiscal year’’. and inserting ‘‘each such fiscal year’’; and 303(c)(1) of such Act (2 U.S.C. 634(c)) is SEC. 4. PAY-AS-YOU-GO IN THE SENATE. (C) by striking ‘‘fiscal year before the fis- amended by— Subparagraphs (A), (B), and (C) of section cal year’’ and inserting ‘‘biennium before the (A) striking ‘‘fiscal year’’ and inserting 202(b)(2) of House Concurrent Resolution 67 biennium’’. ‘‘biennium’’; and (104th Congress) are amended to read as fol- (10) PRIOR YEAR OUTLAYS.—Section (B) striking ‘‘that year’’ and inserting lows: 1105(a)(18) of title 31, United States Code, is ‘‘each fiscal year of that biennium’’. ‘‘(A) The period of the biennium covered by amended— (f) PERMISSIBLE REVISIONS OF CONCURRENT the most recently adopted concurrent resolu- (A) by striking ‘‘the prior fiscal year’’ and RESOLUTIONS ON THE BUDGET.—Section 304(a) tion on the budget. inserting ‘‘each of the 2 most recently com- of such Act (2 U.S.C. 635) is amended— ‘‘(B) The period of the first six fiscal years pleted fiscal years,’’; (1) by striking ‘‘fiscal year’’ the first two covered by the most recently adopted con- (B) by striking ‘‘for that year’’ and insert- places it appears and inserting ‘‘biennium’’; current resolution on the budget. ing ‘‘with respect to those fiscal years’’; and (2) by striking ‘‘for such fiscal year’’; and ‘‘(C) The period of the four fiscal years fol- (C) by striking ‘‘in that year’’ and insert- (3) by inserting before the period ‘‘for such lowing the first six fiscal years covered by ing ‘‘in those fiscal years’’. biennium’’. the most recently adopted concurrent resolu- (11) PRIOR YEAR RECEIPTS.—Section (g) PROCEDURES FOR CONSIDERATION OF tion on the budget.’’. 1105(a)(19) of title 31, United States Code, is amended— BUDGET RESOLUTIONS.—Section 305(a)(3) of SEC. 5. AMENDMENTS TO TITLE 31, UNITED such Act (2 U.S.C. 636(b)(3)) is amended by STATES CODE. (A) by striking ‘‘the prior fiscal year’’ and striking ‘‘fiscal year’’ and inserting ‘‘bien- (a) DEFINITION.—Section 1101 of title 31, inserting ‘‘each of the 2 most recently com- nium’’. United States Code, is amended by adding at pleted fiscal years’’; (h) COMPLETION OF HOUSE ACTION ON AP- the end thereof the following new paragraph: (B) by striking ‘‘for that year’’ and insert- PROPRIATION BILLS.—Section 307 of such Act ‘‘(3) ‘biennium’ has the meaning given to ing ‘‘with respect to those fiscal years’’; and (2 U.S.C. 638) is amended— such term in paragraph (11) of section 3 of (C) by striking ‘‘in that year’’ each place it (1) by striking ‘‘each year’’ and inserting the Congressional Budget and Impoundment appears and inserting ‘‘in those fiscal years’’. (c) ESTIMATED EXPENDITURES OF LEGISLA- ‘‘each odd-numbered year’’; Control Act of 1974 (2 U.S.C. 622(11)).’’. TIVE AND JUDICIAL BRANCHES.—Section (2) by striking ‘‘annual’’ and inserting ‘‘bi- (b) BUDGET CONTENTS AND SUBMISSION TO 1105(b) of title 31, United States Code, is ennial’’; THE CONGRESS.— amended by striking ‘‘each year’’ and insert- (3) by striking ‘‘fiscal year’’ and inserting (1) SCHEDULE.—The matter preceding para- ‘‘biennium’’; and ing ‘‘each even-numbered year’’. graph (1) in section 1105(a) of title 31, United (d) RECOMMENDATIONS TO MEET ESTIMATED (4) by striking ‘‘that year’’ and inserting States Code, is amended to read as follows: DEFICIENCIES.—Section 1105(c) of title 31, ‘‘each odd-numbered year’’. ‘‘(a) On or before the first Monday in Feb- United States Code, is amended— (i) COMPLETION OF ACTION ON REGULAR AP- ruary of each odd-numbered year (or, if ap- (1) by striking ‘‘the fiscal year for’’ the PROPRIATION BILLS.—Section 309 of such Act plicable, as provided by section 300(b) of the first place it appears and inserting ‘‘each fis- (2 U.S.C. 640) is amended— Congressional Budget Act of 1974), beginning cal year in the biennium for’’; (1) by inserting ‘‘of any odd-numbered cal- with the One Hundred Seventh Congress, the (2) by striking ‘‘the fiscal year for’’ the endar year’’ after ‘‘July’’; President shall transmit to the Congress, the second place it appears and inserting ‘‘each (2) by striking ‘‘annual’’ and inserting ‘‘bi- budget for the biennium beginning on Octo- fiscal year of the biennium, as the case may ennial’’; and ber 1 of such calendar year. The budget be,’’; and (3) by striking ‘‘fiscal year’’ and inserting transmitted under this subsection shall in- (3) by striking ‘‘that year’’ and inserting ‘‘biennium’’. clude a budget message and summary and ‘‘for each year of the biennium’’. (j) RECONCILIATION PROCESS.—Section supporting information. The President shall (e) CAPITAL INVESTMENT ANALYSIS.—Sec- 310(a) of such Act (2 U.S.C. 641(a)) is include in each budget the following:’’. tion 1105(e)(1) of title 31, United States Code, amended— (2) EXPENDITURES.—Section 1105(a)(5) of is amended by striking ‘‘ensuing fiscal year’’ (1) in the matter preceding paragraph (1), title 31, United States Code, is amended by and inserting ‘‘biennium to which such budg- by striking ‘‘any fiscal year’’ and inserting striking ‘‘the fiscal year for which the budg- et relates’’. ‘‘any biennium’’; and et is submitted and the 4 fiscal years after (f) SUPPLEMENTAL BUDGET ESTIMATES AND (2) in paragraph (1) by striking ‘‘such fiscal that year’’ and inserting ‘‘each fiscal year in CHANGES.— year’’ each place it appears and inserting the biennium for which the budget is submit- (1) IN GENERAL.—Section 1106(a) of title 31, ‘‘any fiscal year covered by such resolution’’. ted and in the succeeding 4 years’’. United States Code, is amended— (k) SECTION 311 POINT OF ORDER.— (3) RECEIPTS.—Section 1105(a)(6) of title 31, (A) in the matter preceding paragraph (1), (1) IN THE HOUSE.—Section 311(a)(1) of such United States Code, is amended by striking by— Act (2 U.S.C. 642(a)) is amended— ‘‘the fiscal year for which the budget is sub- (i) striking ‘‘Before July 16 of each year,’’ (A) by striking ‘‘for a fiscal year’’ and in- mitted and the 4 fiscal years after that year’’ and inserting ‘‘Before February 15 of each serting ‘‘for a biennium’’; and inserting ‘‘each fiscal year in the bien- even numbered year,’’; and (B) by striking ‘‘the first fiscal year’’ each nium for which the budget is submitted and (ii) striking ‘‘fiscal year’’ and inserting place it appears and inserting ‘‘either fiscal in the succeeding 4 years’’. ‘‘biennium’’; year of the biennium’’; and (4) BALANCE STATEMENTS.—Section (B) in paragraph (1), by striking ‘‘that fis- (C) by striking ‘‘that first fiscal year’’ and 1105(a)(9)(C) of title 31, United States Code, is cal year’’ and inserting ‘‘each fiscal year in inserting ‘‘each fiscal year in the biennium’’. amended by striking ‘‘the fiscal year’’ and such biennium’’; (2) IN THE SENATE.—Section 311(a)(2) of inserting ‘‘each fiscal year in the biennium’’. (C) in paragraph (2), by striking ‘‘4 fiscal such Act is amended— (5) FUNCTIONS AND ACTIVITIES.—Section years following the fiscal year’’ and insert- (A) by striking ‘‘for the first fiscal year’’ 1105(a)(12) of title 31, United States Code, is ing ‘‘4 fiscal years following the biennium’’; and inserting ‘‘for either fiscal year of the amended— and biennium’’; and (A) in subparagraph (A), by striking ‘‘the (D) in paragraph (3), by striking ‘‘fiscal (B) by striking ‘‘that first fiscal year’’ each fiscal year’’ and inserting ‘‘each fiscal year year’’ and inserting ‘‘biennium’’. place it appears and inserting ‘‘each fiscal in the biennium’’; and (2) CHANGES.—Section 1106(b) of title 31, year in the biennium’’. (6) ALLOWANCES.—Section 1105(a)(13) of United States Code, is amended by— (3) SOCIAL SECURITY LEVELS.—Section title 31, United States Code, is amended by (A) striking ‘‘the fiscal year’’ and inserting 311(a)(3) of such Act is amended by— striking ‘‘the fiscal year’’ and inserting ‘‘each fiscal year in the biennium’’; (A) striking ‘‘for the first fiscal year’’ and ‘‘each fiscal year in the biennium’’. (B) striking ‘‘April 11 and July 16 of each inserting ‘‘each fiscal year in the biennium’’; (7) ALLOWANCES FOR UNCONTROLLED EX- year’’ and inserting ‘‘February 15 of each and PENDITURES.—Section 1105(a)(14) of title 31, even-numbered year’’; and (B) striking ‘‘that fiscal year’’ and insert- United States Code, is amended by striking (C) striking ‘‘July 16’’ and inserting ‘‘Feb- ing ‘‘each fiscal year in the biennium’’. ‘‘that year’’ and inserting ‘‘each fiscal year ruary 15 of each even-numbered year.’’. January 19, 1999 CONGRESSIONAL RECORD — SENATE S521

(g) CURRENT PROGRAMS AND ACTIVITIES ES- ing after the item relating to section 313 the (4) in subsection (c), by inserting a comma TIMATES.— following new item: after ‘‘section’’ the second place it appears (1) IN GENERAL.—Section 1109(a) of title 31, ‘‘Sec. 316. Authorizations of appropria- and inserting ‘‘including a strategic plan United States Code, is amended— tions.’’. submitted by September 30, 1997 meeting the (A) by striking ‘‘On or before the first SEC. 8. GOVERNMENT PLANS ON A BIENNIAL requirements of subsection (a)’’. Monday after January 3 of each year (on or BASIS. (g) PERFORMANCE PLANS.—Section 2803(a) before February 5 in 1986)’’ and inserting ‘‘At (a) STRATEGIC PLANS.—Section 306 of title of title 39, United States Code, is amended— the same time the budget required by section 5, United States Code, is amended— (1) in the matter before paragraph (1), by 1105 is submitted for a biennium’’; and (1) in subsection (a), by striking ‘‘Septem- striking ‘‘an annual’’ and inserting ‘‘a bien- (B) by striking ‘‘the following fiscal year’’ ber 30, 1997’’ and inserting ‘‘September 30, nial’’; and inserting ‘‘each fiscal year of such pe- 2000’’; (2) in paragraph (1), by inserting after riod’’. (2) in subsection (b)— ‘‘program activity’’ the following: ‘‘for both (2) JOINT ECONOMIC COMMITTEE.—Section (A) by striking ‘‘at least every three years 1 and 2 of the biennial plan’’; 1109(b) of title 31, United States Code, is years’’ and inserting ‘‘at least every 4 (3) in paragraph (5), by striking ‘‘and’’ amended by striking ‘‘March 1 of each year’’ years’’; and after the semicolon; and inserting ‘‘within 6 weeks of the Presi- (B) by striking ‘‘five years forward’’ and (4) in paragraph (6), by striking the period dent’s budget submission for each odd-num- inserting ‘‘six years forward’’; and and inserting ‘‘; and’’; and bered year (or, if applicable, as provided by (3) in subsection (c), by inserting a comma (5) by adding after paragraph (6) the follow- section 300(b) of the Congressional Budget after ‘‘section’’ the second place it appears ing: Act of 1974)’’. and adding ‘‘including a strategic plan sub- ‘‘(7) cover a 2-year period beginning with (h) YEAR-AHEAD REQUESTS FOR AUTHORIZ- mitted by September 30, 1997 meeting the re- the first fiscal year of the next biennial ING LEGISLATION.—Section 1110 of title 31, quirements of subsection (a)’’. budget cycle.’’. United States Code, is amended by— (b) BUDGET CONTENTS AND SUBMISSION TO (h) COMMITTEE VIEWS OF PLANS AND RE- (1) striking ‘‘May 16’’ and inserting ‘‘March CONGRESS.—Paragraph (28) of section 1105(a) PORTS.—Section 301(d) of the Congressional 31’’; and of title 31, United States Code, is amended by Budget Act (2 U.S.C. 632(d)) is amended by (2) striking ‘‘year before the year in which striking ‘‘beginning with fiscal year 1999, a’’ adding at the end ‘‘Each committee of the the fiscal year begins’’ and inserting ‘‘cal- and inserting ‘‘beginning with fiscal year Senate or the House of Representatives shall endar year preceding the calendar year in 2002, a biennial’’. review the strategic plans, performance which the biennium begins’’. (c) PERFORMANCE PLANS.—Section 1115 of plans, and performance reports, required title 31, United States Code, is amended— SEC. 6. TWO-YEAR APPROPRIATIONS; TITLE AND under section 306 of title 5, United States STYLE OF APPROPRIATIONS ACTS. (1) in subsection (a)— Code, and sections 1115 and 1116 of title 31, Section 105 of title 1, United States Code, (A) in the matter before paragraph (1)— United States Code, of all agencies under the is amended to read as follows: (i) by striking ‘‘section 1105(a)(29)’’ and in- jurisdiction of the committee. Each commit- serting ‘‘section 1105(a)(28)’’; and tee may provide its views on such plans or ‘‘§ 105. Title and style of appropriations Acts (ii) by striking ‘‘an annual’’ and inserting reports to the Committee on the Budget of ‘‘(a) The style and title of all Acts making ‘‘a biennial’’; the applicable House.’’. appropriations for the support of the Govern- (B) in paragraph (1) by inserting after (i) EFFECTIVE DATE.— ment shall be as follows: ‘An Act making ap- ‘‘program activity’’ the following: ‘‘for both (1) IN GENERAL.—The amendments made by propriations (here insert the object) for each years 1 and 2 of the biennial plan’’; this section shall take effect on March 1, fiscal year in the biennium of fiscal years (C) in paragraph (5) by striking ‘‘and’’ after 2000. (here insert the fiscal years of the bien- the semicolon, (2) AGENCY ACTIONS.—Effective on and after nium).’. (D) in paragraph (6) by striking the period the date of enactment of this Act, each agen- ‘‘(b) All Acts making regular appropria- and inserting a semicolon; and inserting cy shall take such actions as necessary to tions for the support of the Government ‘‘and’’ after the inserted semicolon; and prepare and submit any plan or report in ac- shall be enacted for a biennium and shall (E) by adding after paragraph (6) the fol- cordance with the amendments made by this specify the amount of appropriations pro- lowing: Act. vided for each fiscal year in such period. ‘‘(7) cover a 2-year period beginning with SEC. 9. BIENNIAL APPROPRIATIONS BILLS. ‘‘(c) For purposes of this section, the term the first fiscal year of the next biennial (a) IN GENERAL.—Title III of the Congres- ‘biennium’ has the same meaning as in sec- budget cycle.’’; sional Budget Act of 1974 (2 U.S.C. 631 et seq.) tion 3(11) of the Congressional Budget and (2) in subsection (d) by striking ‘‘annual’’ is amended by adding at the end the follow- Impoundment Control Act of 1974 (2 U.S.C. and inserting ‘‘biennial’’; and ing: 622(11)).’’. (3) in paragraph (6) of subsection (f) by ‘‘CONSIDERATION OF BIENNIAL APPROPRIATIONS SEC. 7. MULTIYEAR AUTHORIZATIONS. striking ‘‘annual’’ and inserting ‘‘biennial’’. BILLS (d) MANAGERIAL ACCOUNTABILITY AND (a) IN GENERAL.—Title III of the Congres- ‘‘SEC. 317. It shall not be in order in the FLEXIBILITY.—Section 9703 of title 31, United sional Budget Act of 1974 is amended by add- House of Representatives or the Senate in ing at the end the following new section: States Code, relating to managerial account- ability, is amended— any odd-numbered year to consider any regu- ‘‘AUTHORIZATIONS OF APPROPRIATIONS (1) in subsection (a)— lar bill providing new budget authority or a ‘‘SEC. 316. (a) POINT OF ORDER.—It shall not (A) in the first sentence by striking ‘‘an- limitation on obligations under the jurisdic- be in order in the House of Representatives nual’’; and tion of any of the subcommittees of the Com- or the Senate to consider— (B) by striking ‘‘section 1105(a)(29)’’ and in- mittees on Appropriations for only the first ‘‘(1) any bill, joint resolution, amendment, serting ‘‘section 1105(a)(28)’’; fiscal year of a biennium, unless the pro- motion, or conference report that authorizes (2) in subsection (e)— gram, project, or activity for which the new appropriations for a period of less than 2 fis- (A) in the first sentence by striking ‘‘one budget authority or obligation limitation is cal years, unless the program, project, or ac- or’’ before ‘‘years’’; provided will require no additional authority tivity for which the appropriations are au- (B) in the second sentence by striking ‘‘a beyond 1 year and will be completed or ter- thorized will require no further appropria- subsequent year’’ and inserting ‘‘for a subse- minated after the amount provided has been tions and will be completed or terminated quent 2-year period’’; and expended.’’. (b) AMENDMENT TO TABLE OF CONTENTS.— after the appropriations have been expended; (C) in the third sentence by striking The table of contents set forth in section 1(b) and ‘‘three’’ and inserting ‘‘four’’. of the Congressional Budget and Impound- ‘‘(2) in any odd-numbered year, any author- (e) PILOT PROJECTS FOR PERFORMANCE ization or revenue bill or joint resolution BUDGETING.—Section 1119 of title 31, United ment Control Act of 1974 is amended by add- until Congress completes action on the bien- States Code, is amended— ing after the item relating to section 313 the nial budget resolution, all regular biennial (1) in paragraph (1) of subsection (d), by following new item: appropriations bills, and all reconciliation striking ‘‘annual’’ and inserting ‘‘biennial’’; ‘‘Sec. 317. Consideration of biennial appro- bills. and priations bills.’’. ‘‘(b) APPLICABILITY.—In the Senate, sub- (2) in subsection (e), by striking ‘‘annual’’ SEC. 10. REPORT ON TWO-YEAR FISCAL PERIOD. section (a) shall not apply to— and inserting ‘‘biennial’’. Not later than 180 days after the date of ‘‘(1) any measure that is privileged for con- (f) STRATEGIC PLANS.—Section 2802 of title enactment of this Act, the Director of OMB sideration pursuant to a rule or statute; 39, United States Code, is amended— shall— ‘‘(2) any matter considered in Executive (1) is subsection (a), by striking ‘‘Septem- (1) determine the impact and feasibility of Session; or ber 30, 1997’’ and inserting ‘‘September 30, changing the definition of a fiscal year and ‘‘(3) an appropriations measure or rec- 2000’’; the budget process based on that definition onciliation bill.’’. (2) in subsection (b), by striking ‘‘at least to a 2-year fiscal period with a biennial budg- (b) AMENDMENT TO TABLE OF CONTENTS.— every three years’’ and inserting ‘‘at least et process based on the 2-year period; and The table of contents set forth in section 1(b) every 4 years’’; (2) report the findings of the study to the of the Congressional Budget and Impound- (3) by striking ‘‘five years forward’’ and in- Committees on the Budget of the House of ment Control Act of 1974 is amended by add- serting ‘‘six years forward’’; and Representatives and the Senate. S522 CONGRESSIONAL RECORD — SENATE January 19, 1999 SEC. 11. EFFECTIVE DATE. strategic plans to the Office of Management well. Not a new idea. As a matter of (a) IN GENERAL.—Except as provided in sec- and Budget, along with their budget submis- fact, since 1950, Congress has failed on tions 8 and 10 and subsection (b), this Act sions, by September 30 of each year. Finally, the 13 individual appropriations bills to and the amendments made by this Act shall the Results Act requires the President to in- be funded in every year except 2—only take effect on January 1, 2001, and shall clude a performance plan for the entire gov- 2 years did we succeed in doing that. apply to budget resolutions and appropria- ernment as part of the budget submission, tions for the biennium beginning with fiscal beginning with the FY 1999 budget. We routinely fund unauthorized ex- year 2002. The Domenici bill modifies the Results Act penditures and appropriations. The (b) AUTHORIZATIONS FOR THE BIENNIUM.— to place it on a two-year cycle along with idea is to have an Authorization Com- For purposes of authorizations for the bien- the budget process. The bill also requires the mittee and an Appropriations Commit- nium beginning with fiscal year 2002, the authorizing committees to review the strate- tee. The authorization is made and provisions of this Act and the amendments gic plans, performance plans, and perform- then it is funded. That has not been the made by this Act relating to 2-year author- ance reports of federal agencies and to sub- case. We need to change that. izations shall take effect January 1, 2000. mit their views, if any, on these plans and In response to that, I introduced, in reports as part of their views and estimates the 104th Congress, legislation that DESCRIPTION OF THE BIENNIAL BUDGETING AND submissions to the budget committees. would create a biannual budget, and I APPROPRIATIONS ACT Mr. THOMAS. Mr. President, I think am very pleased to join in with Sen- The Domenici bill would convert the an- it is great for us to get started with our ators DOMENICI and THOMPSON in offer- nual budget, appropriations, and authoriza- work on the floor. We have been work- ing this bill this year. This legislation tion process to a biennial, or two-year, cycle. ing, of course, in organizing our com- does not eliminate the budgeting proc- FIRST YEAR: BUDGET AND APPROPRIATIONS mittees, drafting our bills, getting pre- ess. Each step serves an important role Requires the President to submit a two- pared—as a matter of fact, probably and will continue to do that. However, year budget at the beginning of the first ses- earlier than usual, despite the trial basically, we would simply be doing it sion of a Congress. The President’s budget that is going on here. So it is good to would cover each year in the biennium and for 2 years rather than 1, having the off get started. year for oversight. planning levels for the four out-years. Con- I am pleased that our party has also verts the ‘‘Mid-session Review’’ into a ‘‘Mid- I happen to think that one of the biennium review’’. The President would sub- an agenda. We will be talking about principal obligations of the Congress is mit his ‘‘mid-biennium review’’ at the begin- Social Security, of course. I think a oversight of the kinds of programs that ning of the second year. great many changes need to be made have been funded by this Congress. We Requires Congress to adopt a two-year there to ensure that this program con- have not had the opportunity to do budget resolution and a reconciliation bill (if tinues, not only for those now drawing that. We have extended debate on ap- necessary). Instead of enforcing the first fis- benefits but for those who will in the propriations throughout almost the en- cal year and the sum of the five years set out future. tire year in each year of the 2-year pe- in the budget resolution, the bill provides We will be talking about education, riods. Almost all of us come from that the budget resolution establish binding seeking to get Federal help directly to levels for each year in the biennium and the States where a 2-year cycle program is sum of the six-year period. The bill modifies the classrooms. used and is successful. It is not a brand the time frames in the Senate ten-year pay- We will be talking about strengthen- new idea and it can be done. I am sure as-you-go point of order to provide that leg- ing the military, which I think is very there will be resistance, largely from islation could not increase the deficit for the important and must be done. the appropriators, who rather enjoy biennium, the sum of the first six years, and I think tax reduction and tax reform the power plays that go on each year the sum of the last 4 years. is very high on our list of priorities. through the appropriations process. Requires Congress to enact a two-year ap- Certainly, we will be working on that. But I believe in the old saying that we propriations bills during the first session of Health care, of course, will be part of Congress. Requires Congress to enact 13 ap- have often heard that ‘‘if you expect what we talk about. different results, you have to change propriations bills covering a two-year period And each of us, in addition to those, and provides a new majority point of order the process.’’ against appropriations bills that fail to cover will have other issues. The results we have had are not the two years. So I rise to talk a moment this morn- kinds of results that most people would Makes budgeting and appropriating the ing about biannual budgeting. It is a like to have. I think that it is high priority for the first session of a Congress. real pleasure for me to join the chair- time for us to change the process, and The bill provides a majority point of order man of the Budget Committee, Senator I look forward very much to that. against consideration of authorization and DOMENICI, and chairman of the Govern- Mr. THOMAS. Mr. President, it is an revenue legislation until the completion of mental Affairs Committee, Senator honor to once again join the Chairman the biennial budget resolution, reconcili- THOMPSON, to introduce a bill that will of the Budget Committee, Senator ation legislation (if necessary) and the thir- create a 2-year budgeting appropria- teen biennial appropriations bills. An excep- DOMENICI, and the Chairman of the tion is made for certain ‘‘must-do’’ meas- tions process. We worked long and hard Government Affairs Committee, Sen- ures. on that issue. I have been working on ator THOMPSON in introducing legisla- it for some time, largely because it is SECOND YEAR: AUTHORIZATION LEGISLATION tion to create a two year budget and AND ENHANCED OVERSIGHT my belief that the current budgeting appropriations process. We’ve all Devotes the second session of a Congress to process is broken. worked long and hard on this issue and consideration of biennial authorization bills After last year’s massive omnibus ap- I am hopeful that we can finally enact and oversight of federal programs. The bill propriations bill, which was a debacle, this common sense reform this year. provides a majority point of order against of course, I argue that the budget proc- I’ve been saying for awhile that the authorization and revenue legislation that ess needs to be changed. We spend en- current budget process is breaking cover less than two years except those meas- tirely too much time, both in the Con- down. After last year’s debacle with ures limited to temporary programs or ac- gress and in the executive branch, on the massive omnibus appropriations tivities lasting less than two years. budget issues. bill, I’d argue that the budget process Modifies the Government Performance and Since the most recent budget process is broken. Congress and the executive Results Act of 1993 to incorporate the gov- ernment performance planning and reporting reform in 1974, Congress has consist- branch spend entirely too much time process into the two-year budget cycle to en- ently failed to complete action on the on budget issues. Since the most recent hance oversight of federal programs. budget by the time of the start of the budget process reform in 1974, Congress The Government Performance and Results fiscal year and, as a result, have in- has consistently failed to complete ac- Act of 1993 (the Results Act) requires federal creasingly relied on omnibus measures tion on the Federal budget before the agencies to develop strategic plans, perform- that come in at the end. start of the fiscal year and, as a result, ance plans, and performance reports. The law Last year’s experience ought to en- has increasingly relied on omnibus requires agencies to establish performance sure that we do, in fact, need a change. spending measures to fund the Federal goals and to report on their actual perform- In fact, only 4 of the 13 regular appro- ance in meeting these goals. The Results Act Government. Last year’s experience requires federal agencies to consult with priations bills were passed for funding should dispel any lingering doubts congressional committees as they develop for 10 cabinet-level departments, and about whether the current process is their plans. Beginning in 1997, the law will the rest was crammed into a 24-hour broken. In fact, only four of the 13 reg- require all federal agencies to submit their budget session, which does not work ular appropriations bills were passed January 19, 1999 CONGRESSIONAL RECORD — SENATE S523 before funding for 10 Cabinet-level de- S. 93. A bill to improve and strength- dend excluding the transactions of the partments was crammed into one bill en the budget process; to the Commit- Social Security trust fund in the very debated over just a 24 hour period. tee on the Budget and the Committee near future. It is time for the American The budget resolution, reconciliation on Governmental Affairs, jointly, pur- taxpayer to collect a dividend. bill and appropriations bill continue to suant to the order of August 4, 1977, In my view, the current budget proc- become more time-consuming. In the with instructions that if one Commit- ess allows us to spend the taxpayer’s process, authorizing committees are tee reports, the other Committee have money more easily than it is to let the being squeezed out of the schedule. thirty days to report or be discharged. American taxpayer keep what he has There are too many votes on the same BUDGET ENFORCEMENT ACT OF 1999 earned. We will collect more in taxes issues and too much duplication. In the Mr. DOMENICI. Mr. President, I rise this year as a percentage of the econ- end, this time could be better spent to introduce the Budget Enforcement omy than we have in any year since conducting vigorous oversight of Fed- Act of 1999. The time has come to con- World War II. eral programs which currently go un- form our budget laws and procedures to We need to find a way to change our checked. a new fiscal environment. The Congres- budget process in such a manner to In response to these problems, in the sional Budget and Impoundment Con- stop the erosion on the spending side, 104th Congress I introduced legislation trol Act was enacted 25 years ago. while finding a way to return at least that would create a biennial budget Amendments to the Act, including the something to the American taxpayer. process. I am pleased to continue this Gramm-Rudman-Hollings legislation in Some will argue that we should aban- effort by joining Senator DOMENICI and 1985, established new enforcement pro- don all of our budget laws and find a Senator THOMPSON in offering this bill. cedures that were further expanded and way to cut taxes at any cost. Others It will rectify many of the problems re- modified in the 1990 budget agreement. will demagogue Social Security and garding the current process by promot- Those laws and procedures have served hope it can stop any tax relief and ing timely action on budget legisla- us well. In combination with a strong fight any changes to tighten controls tion. In addition, it will eliminate economy and robust revenue growth, on spending. We need to find a way to much of the redundancy in the current not only have we balanced the Federal steer the middle course. We should re- budget process. This legislation does budget, we will shortly produce a sur- duce taxes, but in a way that ensures not eliminate any of the current budg- plus even excluding the current bal- we set aside the entire Social Security et processes—each step serves an im- ances generated by Social Security surplus for legislation that restores the portant role in congressional delibera- program. long-term solvency of this program. tions. However, by making decisions Laws and procedures developed over With these objectives in mind, I am once every 2 years instead of annually, the last 25 years for a fiscal environ- introducing today the Budget Enforce- the burden should be significantly re- ment of deficits, cannot be appropriate ment Act of 1999. This bill would: duced. for a fiscal environment of surpluses. (1) streamline the budget process and Perhaps most importantly, biennial As an example, while the President a enhance the oversight of Federal pro- budgeting will provide more time for year ago in his State of the Union Ad- grams; effective congressional oversight, dress pledged to reserve ‘‘every penny’’ (2) curb the abuse of emergency which will help reduce the size and of the Social Security surpluses for the spending; scope of the Federal Government. Con- reform of that program, he and the (3) set aside and protect the Social gress simply needs more time to review Congress did not live up to that pledge Security surplus until we can ensure existing Federal programs in order to last year. In one piece of legislation that Social Security will be there for determine priorities in our drive to bal- last fall, we spent $21.4 billion of these every generation; ance the budget. surpluses for so-called ‘‘emergencies’’. (4) make way for tax relief that does Another benefit of a 2 year budget Moreover, in order to get appropria- not tap Social Security surpluses; cycle is its effect on long term plan- tions bills signed into law, we relied on (5) provide that we never again incur ning. A biennial budget will allow the innovative financing mechanisms, a a government shutdown because of our executive branch and State and local charitable characterization, to meet failure to enact appropriations. governments, all of which depend on the spending limits. The fact that we Title I contains the text of the Bien- congressional appropriations, to do a will have difficulty meeting these lim- nial Budgeting and Appropriations Act, better job making plans for long term its in the coming year is not the fault which I am also introducing as sepa- projects. of the limits that we agreed to on a bi- rate legislation today. My remarks on Two year budgets are not a novel partisan basis in 1997, it will be largely that bill go into some detail on the idea. Nor will biennial budgeting cure due to the reluctance to face the hard need for this reform. In my view a bien- all of the Federal Government’s ills. choices in appropriations last year. nial appropriations and budget process However, separating the budget session This is not to say we have not accom- will streamline the budget process, en- from the oversight session works well plished a great deal in recent years. hance oversight, and allow Congress to across the country in our state legisla- Since 1994, we curbed the rate of review the budget and federal programs tures. growth in spending through the enact- in a more deliberative and efficient This legislation is a solid first step ment of legislation such as Freedom to manner. toward reforming the congressional Farm, welfare reform, and the Bal- Title II would reform the manner in budget process. This concept enjoys anced Budget Act of 1997. While I am which we treat emergency spending. In strong bipartisan support. It is sup- very proud that we have stemmed the 1990, we devised the current system of ported by the Clinton administration, growth rate in federal spending, we did caps on appropriated spending and the Majority Leader LOTT and Minority not balance the budget by actually cut- ‘‘pay-as-you-go’’ requirement for all Leader DASCHLE. In addition, 36 other ting spending. We did stop the explo- other legislation. When we were devel- Senators joined Senators DOMENICI, sive and unsustainable rate of growth oping these procedures, the distin- THOMPSON and I in sending a letter last in spending that begun in the 1960’s guished senior Senator from West Vir- year to Senate leaders calling for quick with the help of the budget laws and ginia, Senator BYRD, had the foresight action on this bipartisan reform early amendments of the past 25 years. But to recognize that we needed an excep- this year. I am hopeful that effort and even so, it should be clear that the cur- tion for emergency legislation. this bill will be a catalyst for swift ac- rent balanced budget is largely due to Since President Clinton made his tion on this common sense, good gov- an unexpected growth in federal reve- pledge last January that every penny ernment reform. nues due to our robust economy. of the surplus should be reserved for Beginning in 1990, we enjoyed the Social Security reform, $27 billion in By Mr. DOMENICI (for himself, peace dividend with the end of the Cold ‘‘emergency’’ spending has come out of Mr. GRASSLEY, Mr. GORTON, Mr. War. The taxpayer did not see a dollar the surplus. We could not find $1 dollar ABRAHAM, Mr. FRIST, Mr. of that dividend. In 1998, we saw the out of the budget surplus to return to GRAMS, Mr. SMITH of Oregon, balanced budget dividend, and we the American taxpayer, but we found Mr. THOMAS, and Mr. KYL): should produce a balanced budget divi- $27 billion of ‘‘emergency’’ spending in S524 CONGRESSIONAL RECORD — SENATE January 19, 1999 one year to take out of the surplus for Committee’s jurisdiction are consid- Sec. 402. Amendment to title 31. a host of programs, many of which are ered germane. By adding the words, Sec. 403. Effective date and sunset. difficult to classify as an emergency. ‘‘the funding levels in this resolution TITLE V—BUDGET ACT AMENDMENTS Senator BYRD was correct in 1990. We assume that’’, a Senator can make any REGARDING THE SENATE’S CONSIDER- need an exception for emergency sense of the Senate amendment ger- ATION OF BUDGET RESOLUTION AND spending and the bill I introduced mane. Instead of debating spending, RECONCILIATION BILLS today retains that exception. However, revenue, and debt levels, the Senate Sec. 501. Consideration of budget measures this bill says if something is truly an now spends most of its time debating in the Senate. emergency, it should have the support non-binding language on budget resolu- Sec. 502. Definition. of 60 Senators. Remember, the Presi- tions. For example, last year’s Senate- Sec. 503. Conforming the compensation of dent said that every penny of the sur- passed budget resolution contained 65 the director and deputy direc- plus—without exception—should be re- separate sense of the Senate provi- tor of the Congressional Budget served for Social Security. I feel there sions. Ninety-nine of the 139 pages in Office with other legislative branch support agencies. should be a means to use a portion of that budget resolution were devoted to the surplus for emergency spending, sense of the Senate provisions, ranging TITLE I—BIENNIAL BUDGETING AND but only in extraordinary cir- from agricultural trade policy to the APPROPRIATIONS cumstances. Sixty votes in the Senate Ten Commandments. SEC. 101. SHORT TITLE. is not too much to ask. Title V makes two basic changes to This title may be cited as the ‘‘Biennial Title III modifies the ‘‘pay-as-you- Senate’s procedures for consideration Budgeting and Appropriations Act’’. go’’ requirements to make clear that of budget resolutions and reconcili- SEC. 102. REVISION OF TIMETABLE. on-budget surpluses can be used to off- ation bills. First, it provides a proce- Section 300 of the Congressional Budget set the cost of legislation. Current law dure similar to post-cloture for the Act of 1974 (2 U.S.C. 631) is amended to read is vague with respect to the application consideration of budget resolutions and as follows: of the pay-as-you-go procedures when reconciliation bills. Second, it pro- ‘‘TIMETABLE there is an on-budget surplus. Title III hibits the inclusion of sense of the Sen- ‘‘SEC. 300. (a) IN GENERAL.—Except as pro- modifies the law and the Senate rule to ate language in budget resolutions and vided by subsection (b), the timetable with make clear that the surpluses gen- makes any sense of the Senate amend- respect to the congressional budget process erated by Social Security are not ment not germane and subject to a 60 for any Congress (beginning with the One available for tax or direct spending leg- vote point of order under the Budget Hundred Seventh Congress) is as follows: islation. However, the on-budget sur- Act. plus, the surplus excluding Social Se- Mr. President, I have a more detailed curity, would be available for such leg- description of this legislation and I ask islation. unanimous consent that it be printed, Title IV contains Senator MCCAIN’s ‘‘First Session with the text of the bill, in the RECORD. ‘‘On or before: Action to be completed: legislation, the Government Shutdown There being no objection, the mate- First Monday in February ...... President submits budget recommenda- Prevention Act, frequently referred to rials were ordered to be printed in the tions. February 15 ...... Congressional Budget Office submits re- as an automatic continuing resolution RECORD, as follows: port to Budget Committees. (CR). This title provides that agencies S. 93 Not later than 6 weeks after Committees submit views and estimates will be automatically funded at the budget submission. to Budget Committees. Be it enacted by the Senate and House of Rep- April 1 ...... Budget Committees report concurrent reso- lower of the previous year’s level or the resentatives of the United States of America in lution on the biennial budget. May 15 ...... Congress completes action on concurrent level proposed by the President. Congress assembled, resolution on the biennial budget. Title V is designated to end what has SECTION 1. SHORT TITLE; TABLE OF CONTENTS. May 15 ...... Biennial appropriation bills may be con- been characterized as the ‘‘vote-athon’’ sidered in the House. (a) SHORT TITLE.—This Act may be cited as June 10 ...... House Appropriations Committee reports on budget resolutions and reconcili- the ‘‘Budget Enforcement Act of 1999’’. last biennial appropriation bill. ation bills. This title is very similar to (b) TABLE OF CONTENTS.—The table of con- June 30 ...... House completes action on biennial appro- priation bills. an amendment that Senator BYRD of- tents for this Act is as follows: August 1 ...... Congress completes action on reconcili- fered to the Balanced Budget Act of Sec. 1. Short title; table of contents. ation legislation. October 1 ...... Biennium begins. 1997, which was later dropped during TITLE I—BIENNIAL BUDGETING AND ‘‘Second Session conference. APPROPRIATIONS ‘‘On or before: Action to be completed: The manner in which the Senate cur- Sec. 101. Short title. February 15 ...... President submits budget review. rently considers budget resolutions and Sec. 102. Revision of timetable. Not later than 6 weeks after Congressional Budget Office submits re- President submits budget port to Budget Committees. reconciliation bills is demeaning be- Sec. 103. Amendments to the Congressional review. cause of two loopholes in the current Budget and Impoundment Con- The last day of the session .... Congress completes action on bills and trol Act of 1974. resolutions authorizing new budget au- law regarding the consideration of thority for the succeeding biennium. budget resolutions and reconciliation Sec. 104. Pay-as-you-go in the Senate. Sec. 105. Amendments to title 31, United bills. The first loophole is that the States Code. ‘‘(b) SPECIAL RULE.—In the case of any first time limitation on budget resolutions Sec. 106. Two-year appropriations; title and session of Congress that begins in any year and reconciliation bills is for debate style of appropriations Acts. immediately following a leap year and dur- only. Senators can continue to offer Sec. 107. Multiyear authorizations. ing which the term of a President (except a amendments after the time has ex- Sec. 108. Government plans on a biennial President who succeeds himself) begins, the basis. following dates shall supersede those set pired. This loophole has been exploited forth in subsection (a): in recent years where there is this mad Sec. 109. Biennial appropriations bills. Sec. 110. Report on two-year fiscal period. rush in the Senate at the end of the Sec. 111. Effective date. process to vote on amendments—a de- TITLE II—EMERGENCY SPENDING meaning process for what is supposed REFORMS to be the ‘‘world’s greatest deliberative Sec. 201. Emergency designation guidance. ‘‘First Session body.’’ On October 27, 1995, the Senate ‘‘On or before: Action to be completed: broke a record by holding 39 consecu- TITLE III—CLARIFYING CHANGES TO PAY-AS-YOU-GO First Monday in April ...... President submits budget recommenda- tive roll call votes on a reconciliation tions. April 20 ...... Committees submit views and estimates bill, with the first vote beginning at Sec. 301. Clarification on the application of section 202 of H. Con. Res. 67. to Budget Committees. 9:29 in the morning and the last vote May 15 ...... Budget Committees report concurrent reso- Sec. 302. Clarification of pay-as-you-go. lution on the biennial budget. ending at 11:59 that night. Sec. 303. Clarifications regarding extraneous June 1 ...... Congress completes action on concurrent The second loophole pertains to sense matter. resolution on the biennial budget. July 1 ...... Biennial appropriation bills may be con- of the Senate amendments on budget TITLE IV—REFORM OF THE SENATE’S sidered in the House. resolutions. In the Senate, amend- CONSIDERATION OF APPROPRIATIONS July 20 ...... House completes action on biennial appro- priation bills. ments to budget resolution must be BILLS, BUDGET RESOLUTIONS, AND August 1 ...... Congress completes action on reconcili- germane. However, sense of the Senate RECONCILIATION BILLS ation legislation. October 1 ...... Biennium begins.’’. amendments that are in the Budget Sec. 401. Short title. January 19, 1999 CONGRESSIONAL RECORD — SENATE S525

SEC. 103. AMENDMENTS TO THE CONGRESSIONAL (3) in subsection (f)(1), by striking ‘‘first (3) SOCIAL SECURITY LEVELS.—Section BUDGET AND IMPOUNDMENT CON- fiscal year’’ and inserting ‘‘each fiscal year 311(a)(3) of such Act is amended by— TROL ACT OF 1974. of the biennum’’; (A) striking ‘‘for the first fiscal year’’ and (a) DECLARATION OF PURPOSE.—Section 2(2) (4) in subsection (f)(2)(A), by striking ‘‘first inserting ‘‘each fiscal year in the biennium’’; of the Congressional Budget and Impound- fiscal year’’ and inserting ‘‘each fiscal year and ment Control Act of 1974 (2 U.S.C. 621(2)) is of the biennium’’; and (B) striking ‘‘that fiscal year’’ and insert- amended by striking ‘‘each year’’ and insert- (5) in subsection (g)(1)(A), by striking ing ‘‘each fiscal year in the biennium’’. ing ‘‘biennially’’. ‘‘April’’ and inserting ‘‘May’’. (l) MDA POINT OF ORDER.—Section 312(c) of (b) DEFINITIONS.— (e) SECTION 303 POINT OF ORDER.— the Congressional Budget Act of 1974 (2 (1) BUDGET RESOLUTION.—Section 3(4) of (1) IN GENERAL.—Section 303(a) of such Act U.S.C. 643) is amended— such Act (2 U.S.C. 622(4)) is amended by (2 U.S.C. 634(a)) is amended by striking ‘‘first (1) by striking ‘‘for a fiscal year’’ and in- striking ‘‘fiscal year’’ each place it appears fiscal year’’ and inserting ‘‘each fiscal year serting ‘‘for a biennium’’; and inserting ‘‘biennium’’. of the biennium’’. (2) in paragraph (1), by striking ‘‘first fis- (2) BIENNIUM.—Section 3 of such Act (2 (2) EXCEPTIONS IN THE HOUSE.—Section cal year’’ and inserting ‘‘either fiscal year in U.S.C. 622) is further amended by adding at the biennium’’; the end the following new paragraph: 303(b)(1) of such Act (2 U.S.C. 634(b)) is (3) in paragraph (2), by striking ‘‘that fis- ‘‘(11) The term ‘biennium’ means the pe- amended— cal year’’ and inserting ‘‘either fiscal year in riod of 2 consecutive fiscal years beginning (A) in subparagraph (A), by striking ‘‘the the biennium’’; and on October 1 of any odd-numbered year.’’. budget year’’ and inserting ‘‘the biennium’’; (c) BIENNIAL CONCURRENT RESOLUTION ON and (4) in the matter following paragraph (2), THE BUDGET.— (B) in subparagraph (B), by striking ‘‘the by striking ‘‘that fiscal year’’ and inserting (1) CONTENTS OF RESOLUTION.—Section fiscal year’’ and inserting ‘‘the biennium’’. ‘‘the applicable fiscal year’’. 301(a) of such Act (2 U.S.C. 632(a)) is (3) APPLICATION TO THE SENATE.—Section SEC. 104. PAY-AS-YOU-GO IN THE SENATE. amended— 303(c)(1) of such Act (2 U.S.C. 634(c)) is Subparagraphs (A), (B), and (C) of section (A) in the matter preceding paragraph (1) amended by— 202(b)(2) of House Concurrent Resolution 67 by— (A) striking ‘‘fiscal year’’ and inserting (104th Congress) are amended to read as fol- (i) striking ‘‘April 15 of each year’’ and in- ‘‘biennium’’; and lows: serting ‘‘May 15 of each odd-numbered year’’; (B) striking ‘‘that year’’ and inserting ‘‘(A) The period of the biennium covered by (ii) striking ‘‘the fiscal year beginning on ‘‘each fiscal year of that biennium’’. the most recently adopted concurrent resolu- October 1 of such year’’ the first place it ap- (f) PERMISSIBLE REVISIONS OF CONCURRENT tion on the budget. pears and inserting ‘‘the biennium beginning RESOLUTIONS ON THE BUDGET.—Section 304(a) ‘‘(B) The period of the first six fiscal years on October 1 of such year’’; and of such Act (2 U.S.C. 635) is amended— covered by the most recently adopted con- (iii) striking ‘‘the fiscal year beginning on (1) by striking ‘‘fiscal year’’ the first two current resolution on the budget. October 1 of such year’’ the second place it places it appears and inserting ‘‘biennium’’; ‘‘(C) The period of the four fiscal years fol- appears and inserting ‘‘each fiscal year in (2) by striking ‘‘for such fiscal year’’; and lowing the first six fiscal years covered by such period’’; (3) by inserting before the period ‘‘for such the most recently adopted concurrent resolu- (B) in paragraph (6), by striking ‘‘for the biennium’’. tion on the budget.’’. fiscal year’’ and inserting ‘‘for each fiscal (g) PROCEDURES FOR CONSIDERATION OF SEC. 105. AMENDMENTS TO TITLE 31, UNITED year in the biennium’’; and BUDGET RESOLUTIONS.—Section 305(a)(3) of STATES CODE. (C) in paragraph (7), by striking ‘‘for the such Act (2 U.S.C. 636(b)(3)) is amended by (a) DEFINITION.—Section 1101 of title 31, first fiscal year’’ and inserting ‘‘for each fis- striking ‘‘fiscal year’’ and inserting ‘‘bien- United States Code, is amended by adding at cal year in the biennium’’. nium’’. the end thereof the following new paragraph: (2) ADDITIONAL MATTERS.—Section 301(b)(3) (h) COMPLETION OF HOUSE ACTION ON AP- ‘‘(3) ‘biennium’ has the meaning given to of such Act (2 U.S.C. 632(b)) is amended by PROPRIATION BILLS.—Section 307 of such Act such term in paragraph (11) of section 3 of striking ‘‘for such fiscal year’’ and inserting (2 U.S.C. 638) is amended— the Congressional Budget and Impoundment ‘‘for either fiscal year in such biennium’’. (1) by striking ‘‘each year’’ and inserting Control Act of 1974 (2 U.S.C. 622(11)).’’. (3) VIEWS OF OTHER COMMITTEES.—Section ‘‘each odd-numbered year’’; (b) BUDGET CONTENTS AND SUBMISSION TO 301(d) of such Act (2 U.S.C. 632(d)) is amended (2) by striking ‘‘annual’’ and inserting ‘‘bi- THE CONGRESS.— by inserting ‘‘(or, if applicable, as provided ennial’’; (1) SCHEDULE.—The matter preceding para- by section 300(b))’’ after ‘‘United States (3) by striking ‘‘fiscal year’’ and inserting graph (1) in section 1105(a) of title 31, United Code’’. ‘‘biennium’’; and States Code, is amended to read as follows: (4) HEARINGS.—Section 301(e)(1) of such Act (4) by striking ‘‘that year’’ and inserting ‘‘(a) On or before the first Monday in Feb- (2 U.S.C. 632(e)) is amended by— ‘‘each odd-numbered year’’. ruary of each odd-numbered year (or, if ap- (A) striking ‘‘fiscal year’’ and inserting (i) COMPLETION OF ACTION ON REGULAR AP- plicable, as provided by section 300(b) of the ‘‘biennium’’; and PROPRIATION BILLS.—Section 309 of such Act Congressional Budget Act of 1974), beginning (B) inserting after the second sentence the (2 U.S.C. 640) is amended— with the One Hundred Seventh Congress, the following: ‘‘On or before April 1 of each odd- (1) by inserting ‘‘of any odd-numbered cal- President shall transmit to the Congress, the numbered year (or, if applicable, as provided endar year’’ after ‘‘July’’; budget for the biennium beginning on Octo- by section 300(b)), the Committee on the (2) by striking ‘‘annual’’ and inserting ‘‘bi- ber 1 of such calendar year. The budget Budget of each House shall report to its ennial’’; and transmitted under this subsection shall in- House the concurrent resolution on the (3) by striking ‘‘fiscal year’’ and inserting clude a budget message and summary and budget referred to in subsection (a) for the ‘‘biennium’’. supporting information. The President shall biennium beginning on October 1 of that (j) RECONCILIATION PROCESS.—Section include in each budget the following:’’. year.’’. 310(a) of such Act (2 U.S.C. 641(a)) is (2) EXPENDITURES.—Section 1105(a)(5) of title 31, United States Code, is amended by (5) GOALS FOR REDUCING UNEMPLOYMENT.— amended— Section 301(f) of such Act (2 U.S.C. 632(f)) is (1) in the matter preceding paragraph (1), striking ‘‘the fiscal year for which the budg- amended by striking ‘‘fiscal year’’ each place by striking ‘‘any fiscal year’’ and inserting et is submitted and the 4 fiscal years after it appears and inserting ‘‘biennium’’. ‘‘any biennium’’; and that year’’ and inserting ‘‘each fiscal year in (6) ECONOMIC ASSUMPTIONS.—Section (2) in paragraph (1) by striking ‘‘such fiscal the biennium for which the budget is submit- 301(g)(1) of such Act (2 U.S.C. 632(g)(1)) is year’’ each place it appears and inserting ted and in the succeeding 4 years’’. amended by striking ‘‘for a fiscal year’’ and ‘‘any fiscal year covered by such resolution’’. (3) RECEIPTS.—Section 1105(a)(6) of title 31, inserting ‘‘for a biennium’’. (k) SECTION 311 POINT OF ORDER.— United States Code, is amended by striking (7) SECTION HEADING.—The section heading (1) IN THE HOUSE.—Section 311(a)(1) of such ‘‘the fiscal year for which the budget is sub- of section 301 of such Act is amended by Act (2 U.S.C. 642(a)) is amended— mitted and the 4 fiscal years after that year’’ striking ‘‘ANNUAL’’ and inserting ‘‘BIEN- (A) by striking ‘‘for a fiscal year’’ and in- and inserting ‘‘each fiscal year in the bien- NIAL’’. serting ‘‘for a biennium’’; nium for which the budget is submitted and (8) TABLE OF CONTENTS.—The item relating (B) by striking ‘‘the first fiscal year’’ each in the succeeding 4 years’’. to section 301 in the table of contents set place it appears and inserting ‘‘either fiscal (4) BALANCE STATEMENTS.—Section forth in section 1(b) of such Act is amended year of the biennium’’; and 1105(a)(9)(C) of title 31, United States Code, is by striking ‘‘Annual’’ and inserting ‘‘Bien- (C) by striking ‘‘that first fiscal year’’ and amended by striking ‘‘the fiscal year’’ and nial’’. inserting ‘‘each fiscal year in the biennium’’. inserting ‘‘each fiscal year in the biennium’’. (d) COMMITTEE ALLOCATIONS.—Section 302 (2) IN THE SENATE.—Section 311(a)(2) of (5) FUNCTIONS AND ACTIVITIES.—Section is amended— such Act is amended— 1105(a)(12) of title 31, United States Code, is (1) in subsection (a)(1) by striking ‘‘for the (A) by striking ‘‘for the first fiscal year’’ amended— first fiscal year of the resolution,’’ and in- and inserting ‘‘for either fiscal year of the (A) in subparagraph (A), by striking ‘‘the serting ‘‘for each fiscal year in the biennium, biennium’’; and fiscal year’’ and inserting ‘‘each fiscal year for at least each of 4 ensuing fiscal years,’’; (B) by striking ‘‘that first fiscal year’’ each in the biennium’’; and (2) in subsection (f)(1), by striking ‘‘for a place it appears and inserting ‘‘each fiscal (6) ALLOWANCES.—Section 1105(a)(13) of fiscal year’’ and inserting ‘‘for a biennium’’; year in the biennium’’. title 31, United States Code, is amended by S526 CONGRESSIONAL RECORD — SENATE January 19, 1999 striking ‘‘the fiscal year’’ and inserting (A) striking ‘‘the fiscal year’’ and inserting ‘‘(2) any matter considered in Executive ‘‘each fiscal year in the biennium’’. ‘‘each fiscal year in the biennium’’; Session; or (7) ALLOWANCES FOR UNCONTROLLED EX- (B) striking ‘‘April 11 and July 16 of each ‘‘(3) an appropriations measure or rec- PENDITURES.—Section 1105(a)(14) of title 31, year’’ and inserting ‘‘February 15 of each onciliation bill.’’. United States Code, is amended by striking even-numbered year’’; and (b) AMENDMENT TO TABLE OF CONTENTS.— ‘‘that year’’ and inserting ‘‘each fiscal year (C) striking ‘‘July 16’’ and inserting ‘‘Feb- The table of contents set forth in section 1(b) in the biennium for which the budget is sub- ruary 15 of each even-numbered year.’’. of the Congressional Budget and Impound- mitted’’. (g) CURRENT PROGRAMS AND ACTIVITIES ES- ment Control Act of 1974 is amended by add- (8) TAX EXPENDITURES.—Section 1105(a)(16) TIMATES.— ing after the item relating to section 313 the of title 31, United States Code, is amended by (1) IN GENERAL.—Section 1109(a) of title 31, following new item: striking ‘‘the fiscal year’’ and inserting United States Code, is amended— ‘‘Sec. 316. Authorizations of appropria- ‘‘each fiscal year in the biennium’’. (A) by striking ‘‘On or before the first tions.’’. (9) FUTURE YEARS.—Section 1105(a)(17) of Monday after January 3 of each year (on or SEC. 108. GOVERNMENT PLANS ON A BIENNIAL title 31, United States Code, is amended— before February 5 in 1986)’’ and inserting ‘‘At BASIS. (A) by striking ‘‘the fiscal year following the same time the budget required by section (a) STRATEGIC PLANS.—Section 306 of title the fiscal year’’ and inserting ‘‘each fiscal 1105 is submitted for a biennium’’; and 5, United States Code, is amended— year in the biennium following the bien- (B) by striking ‘‘the following fiscal year’’ (1) in subsection (a), by striking ‘‘Septem- nium’’; and inserting ‘‘each fiscal year of such pe- ber 30, 1997’’ and inserting ‘‘September 30, (B) by striking ‘‘that following fiscal year’’ riod’’. 2000’’; and inserting ‘‘each such fiscal year’’; and (2) JOINT ECONOMIC COMMITTEE.—Section (2) in subsection (b)— (C) by striking ‘‘fiscal year before the fis- 1109(b) of title 31, United States Code, is (A) by striking ‘‘at least every three cal year’’ and inserting ‘‘biennium before the amended by striking ‘‘March 1 of each year’’ years’’ and inserting ‘‘at least every 4 biennium’’. and inserting ‘‘within 6 weeks of the Presi- years’’; and (10) PRIOR YEAR OUTLAYS.—Section dent’s budget submission for each odd-num- (B) by striking ‘‘five years forward’’ and 1105(a)(18) of title 31, United States Code, is bered year (or, if applicable, as provided by inserting ‘‘six years forward’’; and amended— section 300(b) of the Congressional Budget (3) in subsection (c), by inserting a comma (A) by striking ‘‘the prior fiscal year’’ and Act of 1974)’’. after ‘‘section’’ the second place it appears inserting ‘‘each of the 2 most recently com- (h) YEAR-AHEAD REQUESTS FOR AUTHORIZ- and adding ‘‘including a strategic plan sub- pleted fiscal years,’’; ING LEGISLATION.—Section 1110 of title 31, mitted by September 30, 1997 meeting the re- (B) by striking ‘‘for that year’’ and insert- United States Code, is amended by— quirements of subsection (a)’’. ing ‘‘with respect to those fiscal years’’; and (1) striking ‘‘May 16’’ and inserting ‘‘March (b) BUDGET CONTENTS AND SUBMISSION TO (C) by striking ‘‘in that year’’ and insert- 31’’; and CONGRESS.—Paragraph (28) of section 1105(a) ing ‘‘in those fiscal years’’. (2) striking ‘‘year before the year in which of title 31, United States Code, is amended by (11) PRIOR YEAR RECEIPTS.—Section the fiscal year begins’’ and inserting ‘‘cal- striking ‘‘beginning with fiscal year 1999, a’’ 1105(a)(19) of title 31, United States Code, is endar year preceding the calendar year in and inserting ‘‘beginning with fiscal year amended— which the biennium begins’’. 2002, a biennial’’. (A) by striking ‘‘the prior fiscal year’’ and (c) PERFORMANCE PLANS.—Section 1115 of SEC. 106. TWO-YEAR APPROPRIATIONS; TITLE title 31, United States Code, is amended— inserting ‘‘each of the 2 most recently com- AND STYLE OF APPROPRIATIONS pleted fiscal years’’; ACTS. (1) in subsection (a)— (B) by striking ‘‘for that year’’ and insert- Section 105 of title 1, United States Code, (A) in the matter before paragraph (1)— ing ‘‘with respect to those fiscal years’’; and is amended to read as follows: (i) by striking ‘‘section 1105(a)(29)’’ and in- serting ‘‘section 1105(a)(28)’’; and (C) by striking ‘‘in that year’’ each place it ‘‘§ 105. Title and style of appropriations Acts appears and inserting ‘‘in those fiscal years’’. (ii) by striking ‘‘an annual’’ and inserting ‘‘(a) The style and title of all Acts making ‘‘a biennial’’; (c) ESTIMATED EXPENDITURES OF LEGISLA- appropriations for the support of the Govern- (B) in paragraph (1) by inserting after TIVE AND JUDICIAL BRANCHES.—Section ment shall be as follows: ‘An Act making ap- 1105(b) of title 31, United States Code, is ‘‘program activity’’ the following: ‘‘for both propriations (here insert the object) for each amended by striking ‘‘each year’’ and insert- years 1 and 2 of the biennial plan’’; fiscal year in the biennium of fiscal years ing ‘‘each even-numbered year’’. (C) in paragraph (5) by striking ‘‘and’’ after (here insert the fiscal years of the bien- the semicolon, (d) RECOMMENDATIONS TO MEET ESTIMATED nium).’. (D) in paragraph (6) by striking the period DEFICIENCIES.—Section 1105(c) of title 31, ‘‘(b) All Acts making regular appropria- and inserting a semicolon; and inserting United States Code, is amended— tions for the support of the Government ‘‘and’’ after the inserted semicolon; and (1) by striking ‘‘the fiscal year for’’ the shall be enacted for a biennium and shall (E) by adding after paragraph (6) the fol- first place it appears and inserting ‘‘each fis- specify the amount of appropriations pro- lowing: cal year in the biennium for’’; vided for each fiscal year in such period. ‘‘(7) cover a 2-year period beginning with (2) by striking ‘‘the fiscal year for’’ the ‘‘(c) For purposes of this section, the term the first fiscal year of the next biennial second place it appears and inserting ‘‘each ‘biennium’ has the same meaning as in sec- budget cycle.’’; fiscal year of the biennium, as the case may tion 3(11) of the Congressional Budget and (2) in subsection (d) by striking ‘‘annual’’ be,’’; and Impoundment Control Act of 1974 (2 U.S.C. and inserting ‘‘biennial’’; and (3) by striking ‘‘that year’’ and inserting 622(11)).’’. (3) in paragraph (6) of subsection (f) by ‘‘for each year of the biennium’’. SEC. 107. MULTIYEAR AUTHORIZATIONS. striking ‘‘annual’’ and inserting ‘‘biennial’’. (e) CAPITAL INVESTMENT ANALYSIS.—Sec- (a) IN GENERAL.—Title III of the Congres- (d) MANAGERIAL ACCOUNTABILITY AND tion 1105(e)(1) of title 31, United States Code, sional Budget Act of 1974 is amended by add- FLEXIBILITY.—Section 9703 of title 31, United is amended by striking ‘‘ensuing fiscal year’’ ing at the end the following: States Code, relating to managerial account- and inserting ‘‘biennium to which such budg- ability, is amended— ‘‘AUTHORIZATIONS OF APPROPRIATIONS et relates’’. (1) in subsection (a)— (f) SUPPLEMENTAL BUDGET ESTIMATES AND ‘‘SEC. 316. (a) POINT OF ORDER.—It shall not (A) in the first sentence by striking ‘‘an- CHANGES.— be in order in the House of Representatives nual’’; and (1) IN GENERAL.—Section 1106(a) of title 31, or the Senate to consider— (B) by striking ‘‘section 1105(a)(29)’’ and in- United States Code, is amended— ‘‘(1) any bill, joint resolution, amendment, serting ‘‘section 1105(a)(28)’’; (A) in the matter preceding paragraph (1), motion, or conference report that authorizes (2) in subsection (e)— by— appropriations for a period of less than 2 fis- (A) in the first sentence by striking ‘‘one (i) striking ‘‘Before July 16 of each year,’’ cal years, unless the program, project, or ac- or’’ before ‘‘years’’; and inserting ‘‘Before February 15 of each tivity for which the appropriations are au- (B) in the second sentence by striking ‘‘a even numbered year,’’; and thorized will require no further appropria- subsequent year’’ and inserting ‘‘for a subse- (ii) striking ‘‘fiscal year’’ and inserting tions and will be completed or terminated quent 2-year period’’; and ‘‘biennium’’; after the appropriations have been expended; (C) in the third sentence by striking (B) in paragraph (1), by striking ‘‘that fis- and ‘‘three’’ and inserting ‘‘four’’. cal year’’ and inserting ‘‘each fiscal year in ‘‘(2) in any odd-numbered year, any author- (e) PILOT PROJECTS FOR PERFORMANCE such biennium’’; ization or revenue bill or joint resolution BUDGETING.—Section 1119 of title 31, United (C) in paragraph (2), by striking ‘‘4 fiscal until Congress completes action on the bien- States Code, is amended— years following the fiscal year’’ and insert- nial budget resolution, all regular biennial (1) in paragraph (1) of subsection (d), by ing ‘‘4 fiscal years following the biennium’’; appropriations bills, and all reconciliation striking ‘‘annual’’ and inserting ‘‘biennial’’; and bills. and (D) in paragraph (3), by striking ‘‘fiscal ‘‘(b) APPLICABILITY.—In the Senate, sub- (2) in subsection (e), by striking ‘‘annual’’ year’’ and inserting ‘‘biennium’’. section (a) shall not apply to— and inserting ‘‘biennial’’. (2) CHANGES.—Section 1106(b) of title 31, ‘‘(1) any measure that is privileged for con- (f) STRATEGIC PLANS.—Section 2802 of title United States Code, is amended by— sideration pursuant to a rule or statute; 39, United States Code, is amended— January 19, 1999 CONGRESSIONAL RECORD — SENATE S527 (1) is subsection (a), by striking ‘‘Septem- (1) determine the impact and feasibility of made by a Senator against any provision in ber 30, 1997’’ and inserting ‘‘September 30, changing the definition of a fiscal year and that measure that is not designated as an 2000’’; the budget process based on that definition emergency requirement pursuant to section (2) in subsection (b), by striking ‘‘at least to a 2-year fiscal period with a biennial budg- 251(b)(2)(A) or 252(e) of the Balanced Budget every three years’’ and inserting ‘‘at least et process based on the 2-year period; and and Emergency Deficit Control Act of 1985 every 4 years’’; (2) report the findings of the study to the and the Presiding Officer sustains that point (3) by striking ‘‘five years forward’’ and in- Committees on the Budget of the House of of order, that provision shall be stricken serting ‘‘six years forward’’; and Representatives and the Senate. from the measure and may not be offered as (4) in subsection (c), by inserting a comma SEC. 111. EFFECTIVE DATE. an amendment from the floor. after ‘‘section’’ the second place it appears (a) IN GENERAL.—Except as provided in sec- ‘‘(3) CONFERENCE REPORTS.—A point of and inserting ‘‘including a strategic plan tions 108 and 110 and subsection (b), this title order sustained under this subsection submitted by September 30, 1997 meeting the and the amendments made by this title shall against a conference report shall be disposed requirements of subsection (a)’’. take effect on January 1, 2001, and shall of as provided in section 313(d). (g) PERFORMANCE PLANS.—Section 2803(a) apply to budget resolutions and appropria- ‘‘(c) DEFINITION.—For the purposes of this of title 39, United States Code, is amended— tions for the biennium beginning with fiscal section, an emergency supplemental appro- (1) in the matter before paragraph (1), by year 2002. priations bill is a bill or joint resolution striking ‘‘an annual’’ and inserting ‘‘a bien- (b) AUTHORIZATIONS FOR THE BIENNIUM.— that— nial’’; For purposes of authorizations for the bien- ‘‘(1) includes a provision designated as an (2) in paragraph (1), by inserting after nium beginning with fiscal year 2002, the emergency requirement pursuant to section ‘‘program activity’’ the following: ‘‘for both provisions of this title and the amendments 251(b)(2)(A) or 252(e) of the Balanced Budget years 1 and 2 of the biennial plan’’; made by this title relating to 2-year author- and Emergency Deficit Control Act of 1985; (3) in paragraph (5), by striking ‘‘and’’ izations shall take effect January 1, 2000. ‘‘(2) includes in the long title or short title after the semicolon; TITLE II—EMERGENCY SPENDING of that bill or joint resolution any of the fol- (4) in paragraph (6), by striking the period REFORMS lowing words: emergency, urgent, or disas- and inserting ‘‘; and’’; and SEC. 201. EMERGENCY DESIGNATION GUIDANCE. ter; and (5) by adding after paragraph (6) the follow- The Congressional Budget Act of 1974 is ‘‘(3) appropriates funds in addition to those ing: amended— enacted in the regular appropriations Act for ‘‘(7) cover a 2-year period beginning with (1) by adding the following new section at that year as defined in section 1311 of title the first fiscal year of the next biennial the end of title III: 31, United States Code.’’; budget cycle.’’. ‘‘SEC. 318. EMERGENCY LEGISLATION. (2) in subsections (c)(2) and (d)(2) of section (h) COMMITTEE VIEWS OF PLANS AND RE- ‘‘(a) DESIGNATIONS.— 904, by striking ‘‘and 312(c)’’ and inserting PORTS.—Section 301(d) of the Congressional ‘‘(1) GUIDANCE.—In making a designation of ‘‘312(c), and 316’’; and Budget Act of 1974 (2 U.S.C. 632(d)) is amend- a provision of legislation as an emergency (3) in the table of contents in section 1(a), ed by adding at the end ‘‘Each committee of requirement under section 251(b)(2)(A) or by adding after the item for section 317 the the Senate or the House of Representatives 252(e) of the Balanced Budget and Emergency following: shall review the strategic plans, performance Deficit Control Act of 1985— ‘‘318. Emergency legislation.’’. plans, and performance reports, required ‘‘(A) the President shall submit a message under section 306 of title 5, United States TITLE III—CLARIFYING CHANGES TO PAY- to the Congress analyzing whether a pro- Code, and sections 1115 and 1116 of title 31, AS-YOU-GO posed emergency requirement meets all the United States Code, of all agencies under the SEC. 301. CLARIFICATION ON THE APPLICATION criteria in paragraph (2); and jurisdiction of the committee. Each commit- OF SECTION 202 OF H. CON. RES. 67. ‘‘(B) the committee report, if any, accom- tee may provide its views on such plans or Section 202(b) of H. Con. Res. 67 (104th Con- panying that legislation shall analyze reports to the Committee on the Budget of gress) is amended— whether a proposed emergency requirement the applicable House.’’. (1) in paragraph (1), by striking ‘‘the defi- meets all the criteria in paragraph (2). (i) EFFECTIVE DATE.— cit’’ and inserting ‘‘the on-budget deficit or ‘‘(2) CRITERIA.— (1) IN GENERAL.—The amendments made by cause an on-budget deficit’’; and ‘‘(A) IN GENERAL.—A proposed expenditure this section shall take effect on March 1, (2) in paragraph (6), by— or tax change is an emergency requirement 2000. (A) striking ‘‘increases the deficit’’ and in- if it is— (2) AGENCY ACTIONS.—Effective on and after serting ‘‘increases the on-budget deficit or ‘‘(i) necessary, essential, or vital (not the date of enactment of this title, each causes an on-budget deficit’’; and merely useful or beneficial); agency shall take such actions as necessary (B) striking ‘‘increase the deficit’’ and in- ‘‘(ii) sudden, quickly coming into being, to prepare and submit any plan or report in serting ‘‘increase the on-budget deficit or and not building up over time; accordance with the amendments made by cause an on-budget deficit’’. this title. ‘‘(iii) an urgent, pressing, and compelling need requiring immediate action; SEC. 302. CLARIFICATION OF PAY-AS-YOU-GO. SEC. 109. BIENNIAL APPROPRIATIONS BILLS. ‘‘(iv) subject to subparagraph (B), unfore- (a) IN GENERAL.—Section 252 of the Bal- (a) IN GENERAL.—Title III of the Congres- seen, unpredictable, and unanticipated; and anced Budget and Emergency Deficit Control sional Budget Act of 1974 (2 U.S.C. 631 et seq.) Act of 1985 is amended— is amended by adding at the end the follow- ‘‘(v) not permanent, temporary in nature. NFORESEEN.—An emergency that is (1) in subsection (a), by striking ‘‘the defi- ing: ‘‘(B) U part of an aggregate level of anticipated cit’’ and inserting ‘‘the on-budget deficit or ‘‘CONSIDERATION OF BIENNIAL APPROPRIATIONS emergencies, particularly when normally es- causes an on-budget deficit’’; BILLS timated in advance, is not unforeseen. (2) in subsection (b)(2)— ‘‘SEC. 317. It shall not be in order in the ‘‘(3) JUSTIFICATION FOR FAILURE TO MEET (A) in subparagraph (B), by striking ‘‘; House of Representatives or the Senate in CRITERIA.—If the proposed emergency re- and’’ and inserting a semicolon; any odd-numbered year to consider any regu- quirement does not meet all the criteria set (B) in subparagraph (C), by striking the pe- lar bill providing new budget authority or a forth in paragraph (2), the President or the riod at the end and inserting ‘‘; and’’; and limitation on obligations under the jurisdic- committee report, as the case may be, shall (C) by adding at the end the following: tion of any of the subcommittees of the Com- provide a written justification of why the re- ‘‘(D) the estimate of the on-budget surplus mittees on Appropriations for only the first quirement is an emergency. for the budget year determined under section fiscal year of a biennium, unless the pro- ‘‘(b) POINT OF ORDER.— 254(c)(3)(D).’’. gram, project, or activity for which the new ‘‘(1) IN GENERAL.—When the Senate is con- (b) BASELINE.—Section 254(c)(3) of the Bal- budget authority or obligation limitation is sidering a bill, resolution, amendment, mo- anced Budget and Emergency Deficit Control provided will require no additional authority tion, or conference report, upon a point of Act of 1985 is amended by adding at the end beyond 1 year and will be completed or ter- order being made by a Senator against any the following new subparagraph: minated after the amount provided has been provision in that measure designated as an ‘‘(D) The estimated excess of on-budget re- expended.’’. emergency requirement pursuant to section ceipts over on-budget outlays for the budget (b) AMENDMENT TO TABLE OF CONTENTS.— 251(b)(2)(A) or 252(e) of the Balanced Budget year assuming compliance with the discre- The table of contents set forth in section 1(b) and Emergency Deficit Control Act of 1985 tionary spending limits and that the full ad- of the Congressional Budget and Impound- and the Presiding Officer sustains that point justments are made under subparagraphs (C), ment Control Act of 1974 is amended by add- of order, that provision along with the lan- (E), and (F) of section 251(b)(2).’’. ing after the item relating to section 313 the guage making the designation shall be SEC. 303. CLARIFICATIONS REGARDING EXTRA- following new item: stricken from the measure and may not be NEOUS MATTER. ‘‘Sec. 317. Consideration of biennial appro- offered as an amendment from the floor. Section 313(b)(1)(E) of the Congressional priations bills.’’. ‘‘(2) EMERGENCY LEGISLATION.—When the Budget Act of 1974 is amended by striking SEC. 110. REPORT ON TWO-YEAR FISCAL PERIOD. Senate is considering an emergency supple- ‘‘such year;’’ and inserting ‘‘such year or Not later than 180 days after the date of mental appropriations bill, an amendment such increases or decreases, when taken with enactment of this title, the Director of OMB thereto, a motion thereto, or a conference other provisions in such bill, would cause an shall— report therefrom, upon a point of order being on-budget deficit in such year;’’. S528 CONGRESSIONAL RECORD — SENATE January 19, 1999

TITLE IV—REFORM OF THE SENATE’S section shall be charged to the applicable ap- (b) PROCEDURE.—Section 305(b) of the Con- CONSIDERATION OF APPROPRIATIONS propriation, fund, or authorization whenever gressional Budget Act of 1974 is amended to BILLS, BUDGET RESOLUTIONS, AND a regular appropriation bill or a joint resolu- read as follows: RECONCILIATION BILLS tion making continuing appropriations until ‘‘(b) PROCEDURE IN SENATE FOR THE CONSID- SEC. 401. SHORT TITLE. the end of a fiscal year providing for such ERATION OF A CONCURRENT RESOLUTION ON This title may be cited as the ‘‘Govern- project or activity for such period becomes THE BUDGET.— ment Shutdown Prevention Act’’. law. ‘‘(1) LEGISLATION AVAILABLE.—It shall not be in order to proceed to the consideration of SEC. 402. AMENDMENT TO TITLE 31. ‘‘(e) This section shall not apply to a a concurrent resolution on the budget unless (a) IN GENERAL.—Chapter 13 of title 31, project or activity during a fiscal year if any the text of that resolution has been available United States Code, is amended by inserting other provision of law (other than an author- to Members for at least 1 calendar day (ex- after section 1310 the following new section: ization of appropriations)— ‘‘(1) makes an appropriation, makes funds cluding Sundays and legal holidays unless ‘‘§ 1311. Continuing appropriations available, or grants authority for such the Senate is in session) prior to the consid- ‘‘(a)(1) If any regular appropriation bill for project or activity to continue for such pe- eration of the measure. a fiscal year does not become law prior to riod; or ‘‘(2) TIME FOR DEBATE.— the beginning of such fiscal year or a joint ‘‘(2) specifically provides that no appro- ‘‘(A) IN GENERAL.—Debate in the Senate on resolution making continuing appropriations priation shall be made, no funds shall be any concurrent resolution on the budget, and is not in effect, there is appropriated, out of made available, or no authority shall be all amendments thereto and debatable mo- any moneys in the Treasury not otherwise granted for such project or activity to con- tions and appeals in connection therewith, appropriated, and out of applicable corporate tinue for such period. shall be limited to not more than 30 hours, or other revenues, receipts, and funds, such ‘‘(f) In this section, the term ‘regular ap- except that with respect to any concurrent sums as may be necessary to continue any propriation bill’ means any annual appro- resolution referred to in section 304(a) all project or activity for which funds were pro- priation bill making appropriations, other- such debate shall be limited to not more vided in the preceding fiscal year— wise making funds available, or granting au- than 10 hours. Of this 30 hours, 10 hours shall be reserved for general debate on the resolu- ‘‘(A) in the corresponding regular appro- thority, for any of the following categories tion (including debate on economic goals and priation Act for such preceding fiscal year; of projects and activities: policies) and 20 hours shall be reserved for or ‘‘(1) Agriculture, rural development, and debate of amendments, motions, and appeals. ‘‘(B) if the corresponding regular appro- related agencies programs. The time for general debate shall be equally priation bill for such preceding fiscal year ‘‘(2) The Departments of Commerce, Jus- divided between, and controlled by, the Ma- did not become law, then in a joint resolu- tice, and State, the judiciary, and related jority Leader and the Minority Leader or tion making continuing appropriations for agencies. their designees. such preceding fiscal year. ‘‘(3) The Department of Defense. ‘‘(2) Appropriations and funds made avail- ‘‘(B) DISPOSITION OF AMENDMENTS AND ‘‘(4) The government of the District of Co- able, and authority granted, for a project or OTHER MATTERS.—After no more than 30 lumbia and other activities chargeable in activity for any fiscal year pursuant to this hours of debate on the concurrent resolution whole or in part against the revenues of the section shall be at a rate of operations not in on the budget, the Senate shall, except as District. excess of the lower of— provided in subparagraph (C), proceed, with- ‘‘(5) The Departments of Labor, Health and ‘‘(A) the rate of operations provided for in out any further action or debate on any Human Services, and Education, and related the regular appropriation Act providing for question, to vote on the final disposition agencies. such project or activity for the preceding fis- thereof. ‘‘(6) The Department of Housing and Urban cal year; ‘‘(C) ACTION PERMITTED AFTER 30 HOURS.— Development, and sundry independent agen- ‘‘(B) in the absence of such an Act, the rate After no more than 30 hours of debate on the cies, boards, commissions, corporations, and of operations provided for such project or ac- concurrent resolution on the budget, the offices. tivity pursuant to a joint resolution making only further action in order shall be disposi- ‘‘(7) Energy and water development. continuing appropriations for such preceding tion of— ‘‘(8) Foreign assistance and related pro- fiscal year; ‘‘(i) all amendments then pending before grams. ‘‘(C) the rate provided in the budget sub- the Senate; ‘‘(9) The Department of the Interior and re- mission of the President under section ‘‘(ii) all points of order arising under this lated agencies. 1105(a) of title 31, United States Code, for the Act which have been previously raised; and ‘‘(10) Military construction. fiscal year in question; or ‘‘(iii) motions to reconsider and 1 quorum ‘‘(11) The Department of Transportation ‘‘(D) the annualized rate of operations pro- call on demand to establish the presence of a and related agencies. vided for in the most recently enacted joint quorum (and motions required to establish a ‘‘(12) The Treasury Department, the U.S. resolution making continuing appropriations quorum) immediately before the final vote Postal Service, the Executive Office of the for part of that fiscal year or any funding begins. President, and certain independent agencies. levels established under the provisions of Disposition shall include raising points of ‘‘(13) The legislative branch.’’. this Act. order against pending amendments, motions (b) TECHNICAL AMENDMENT.—The analysis ‘‘(3) Appropriations and funds made avail- to table, and motions to waive. of chapter 13 of title 31, United States Code, able, and authority granted, for any fiscal ‘‘(3) AMENDMENTS.— is amended by inserting after the item relat- year pursuant to this section for a project or ‘‘(A) DEBATE.—Debate in the Senate on any ing to section 1310 the following new item: activity shall be available for the period be- amendment to a concurrent resolution on ginning with the first day of a lapse in ap- ‘‘1311. Continuing appropriations.’’. the budget shall be limited to 1 hour, to be propriations and ending with the earlier of— (c) PROTECTION OF OTHER OBLIGATIONS.— equally divided between, and controlled by, ‘‘(A) the date on which the applicable regu- Nothing in the amendments made by this the mover and the manager of the concur- lar appropriation bill for such fiscal year be- section shall be construed to effect Govern- rent resolution, and debate on any amend- comes law (whether or not such law provides ment obligations mandated by other law, in- ment to an amendment, debatable motion, or for such project or activity) or a continuing cluding obligations with respect to Social appeal shall be limited to 30 minutes, to be resolution making appropriations becomes Security, Medicare, and Medicaid. equally divided between, and controlled by, the mover and the manager of the concur- law, as the case may be; or SEC. 403. EFFECTIVE DATE AND SUNSET. rent resolution, except that in the event the ‘‘(B) the last day of such fiscal year. (a) EFFECTIVE DATE.—The amendments manager of the concurrent resolution is in ‘‘(b) An appropriation or funds made avail- made by this title shall apply with respect to favor of any such amendment, motion, or ap- able, or authority granted, for a project or fiscal years beginning with fiscal year 2000. peal, the time in opposition thereto shall be activity for any fiscal year pursuant to this (b) SUNSET.—The amendments made by controlled by the Minority Leader or his des- section shall be subject to the terms and this title shall sunset and have no force or ignee. No amendment that is not germane to conditions imposed with respect to the ap- effect after fiscal year 2001. propriation made or funds made available for the provisions of that concurrent resolution the preceding fiscal year, or authority grant- TITLE V—BUDGET ACT AMENDMENTS RE- shall be received. An amendment that in- ed for such project or activity under current GARDING THE SENATE’S CONSIDER- cludes precatory language shall not be con- law. ATION OF BUDGET RESOLUTION AND sidered germane. Such leaders, or either of ‘‘(c) Appropriations and funds made avail- RECONCILIATION BILLS them, may, from the time for general debate able, and authority granted, for any project SEC. 501. CONSIDERATION OF BUDGET MEAS- under their control on the adoption of the or activity for any fiscal year pursuant to URES IN THE SENATE. concurrent resolution, allot additional time this section shall cover all obligations or ex- (a) PROHIBITION AGAINST INCLUSION OF to any Senator during the consideration of penditures incurred for such project or activ- PRECATORY LANGUAGE IN A BUDGET RESOLU- any amendment, debatable motion, or ap- ity during the portion of such fiscal year for TION.—Section 301(a) of the Congressional peal. which this section applies to such project or Budget Act of 1974 is amended by adding at ‘‘(B) FILING OF AMENDMENTS.—Except by activity. the end the following: ‘‘The concurrent reso- unanimous consent, no amendment shall be ‘‘(d) Expenditures made for a project or ac- lution shall not include precatory lan- proposed after 15 hours of debate of a concur- tivity for any fiscal year pursuant to this guage.’’. rent resolution on the budget have elapsed, January 19, 1999 CONGRESSIONAL RECORD — SENATE S529 unless it has been submitted in writing to amendments in disagreement, and all (2) in the second sentence, by striking the Journal Clerk by the 15th hour if an amendments thereto, the Senate shall, ex- ‘‘(IV)’’ and inserting ‘‘(III)’’. amendment in the first degree (or if a com- cept as provided in subparagraph (C), pro- plete substitute for the underlying measure), ceed, without any further action or debate DESCRIPTION OF THE BUDGET ENFORCEMENT and unless it has been so submitted by the on any question, to vote on the final disposi- ACT OF 1999 20th hour if an amendment to an amendment tion thereof. TITLE I: BIENNIAL BUDGETING AND (or an amendment to the language proposed ‘‘(C) ACTION PERMITTED AFTER 10 HOURS.— APPROPRIATIONS to be stricken). After no more than 10 hours of debate on the Requires the President to submit a two- ‘‘(C) RECOGNITION.—For the purpose of pro- conference report (or message between the year budget at the beginning of the first ses- viding an opportunity for the offering Houses) accompanying a concurrent resolu- sion of a Congress. amendments in the first degree (or amend- tion on the budget, and all amendments in Requires Congress to adopt a two-year ments which are a complete substitute for disagreement, and all amendments thereto, budget resolution and a reconciliation bill (if the underlying measure), the Presiding Offi- the only further action in order shall be dis- necessary) during the first session of a Con- cer of the Senate shall alternate recognition position of: all amendments then pending be- gress. between members of the majority party and fore the Senate; all points of order arising Requires Congress to enact 13 appropria- the minority party. No Senator shall call up under this Act which have been previously tions bills covering a two-year period during more than a total of 2 amendments until raised; and motions to reconsider and 1 the first session of a Congress and provides a every other Senator shall have had the op- quorum call on demand to establish the pres- new majority point of order against appro- portunity to do likewise. ence of a quorum (and motions required to priations bills that fail to cover two years. ‘‘(D) LIMITATION ON NUMBER OF SECOND DE- establish a quorum) immediately before the Makes budgeting and appropriating the GREE AMENDMENTS.—No more than a total of final vote begins. Disposition shall include priority for the first session of a Congress by 2 consecutive amendments to any amend- raising points of order against pending providing a new majority point of order ment may be offered by either the majority amendments, motions to table, and motions against consideration of authorization and or minority party. to waive. revenue legislation until the completion of ‘‘(4) DEBATE.—General debate time may ‘‘(3) CONFERENCE REPORT DEFEATED.— the biennial budget resolution, reconcili- only be yielded back by unanimous consent Should the conference report be defeated, de- ation legislation (if necessary) and the thir- and a motion to further limit the time for bate on any request for a new conference and teen biennial appropriations bills. general debate shall be debatable for 30 min- the appointment of conferees shall be lim- Devotes the second session of a Congress to utes. A motion to recommit (except a motion ited to 1 hour, to be equally divided between, consideration of biennial authorization bills to recommit with instructions to report and controlled by, the manager of the con- and oversight of federal programs and pro- back within a specified number of days, not ference report and the Minority Leader or vides a majority point of order against au- to exceed 3, not counting any day on which his designee, and should any motion be made thorization and revenue legislation that the Senate is not in session) is not in order. to instruct the conferees before the conferees cover less than two years except those meas- Debate on any such motion to recommit are named, debate on that motion shall be ures limited to temporary programs or ac- shall be limited to 1 hour, to be equally di- limited to one-half hour, to be equally di- tivities lasting less than two years. vided between, and controlled by, the mover vided between, and controlled by, the mover Modifies the Government Performance and and the manager of the concurrent resolu- and the manager of the conference report. Results Act of 1993 (the Results Act) to in- tion. Debate on any amendment to any such in- corporate the government performance plan- ‘‘(5) MATHEMATICAL CONSISTENCY.— structions shall be limited to 20 minutes, to ning and reporting process into the two-year ‘‘(A) IN GENERAL.—Notwithstanding any be equally divided between and controlled by budget cycle to enhance oversight of federal other rule, and except as provided in sub- the mover and the manager of the conference programs. paragraph (B), an amendment or series of report. In all cases when the manager of the amendments to a concurrent resolution on TITLE II: EMERGENCY SPENDING REFORMS conference report is in favor of any motion, the budget proposed in the Senate shall al- Makes any emergency spending in any bill appeal, or amendment, the time in opposi- ways be in order if such amendment or series subject to a 60 vote point of order in the Sen- tion shall be under the control of the minor- of amendments proposes to change any fig- ate. If this point of order is sustained against ity leader or his designee. ure or figures then contained in such concur- any emergency provision, the emergency ‘‘(4) AMENDMENTS IN DISAGREEMENT.—In rent resolution so as to make such concur- spending would be extracted from the bill any case in which there are amendments in rent resolution mathematically consistent under a Byrd rule procedure. disagreement, time on each amendment or so as to maintain such consistency. Provides a reporting requirement for the shall be limited to 30 minutes, to be equally ‘‘(B) EFFECT OF ADOPTION OF SUBSTITUTE President and Congress to justify proposed divided between, and controlled by, the man- AMENDMENTS.—Once an amendment to an emergencies spending and to document ager of the conference report and the Minor- amendment (which is a complete substitute whether proposed emergencies meet five cri- ity Leader or his designee. No amendment for the underlying amendment) has been teria: necessary, sudden, urgent, unforseen, that is not germane to the provisions of such agreed to, no further amendments to the un- and not permanent. amendments shall be received.’’. derlying amendment shall be in order.’’. Makes any non-emergency provision in an (c) RECONCILIATION.—Section 310(e) is (c) CONFERENCE REPORTS IN THE SENATE.— emergency supplemental appropriations bill amended to read as follows: Section 305(c) is amended to read as follows: subject to a 60 vote point of order in the Sen- ‘‘(e) PROCEDURE IN THE SENATE.—The provi- ‘‘(c) ACTION ON CONFERENCE REPORTS IN THE ate. If this point of order was sustained, the sions of section 305 for the consideration in SENATE.— non-emergency provision would be extracted the Senate of concurrent resolutions on the ‘‘(1) MOTION TO PROCEED.—A motion to pro- from the bill under a Byrd rule procedure. budget and conference reports thereon, ex- ceed to the consideration of the conference cept for the provisions of subsection (b)(5) of TITLE III: CLARIFYING CHANGES TO PAY-AS-YOU- report on any concurrent resolution on the that section, shall also apply to the consider- GO budget (or a reconciliation bill or resolution) ation in the Senate of reconciliation bills Amends the Senate’s 10-year pay-as-you-go may be made even though a previous motion considered under subsection (b) and con- rule to make clear that an on-budget surplus to the same effect has been disagreed to. ference reports thereon.’’. can be used to offset the cost of tax reduc- ‘‘(2) CONSIDERATION.— SEC. 502. DEFINITION. tions or direct spending increases. ‘‘(A) IN GENERAL.—During the consider- Section 3 of the Congressional Budget Act Amends the statutory pay-go system (en- ation in the Senate of the conference report of 1974 is amended by adding the following forced by OMB) to make clear that an on- (or a message between Houses) on any con- new paragraph: budget surplus can be used to offset the cost current resolution on the budget, and all ‘‘(13) The term ‘major functional category’ of tax reductions or direct spending in- amendments in disagreement, and all means the allocation of budget authority creases. amendments thereto, and debatable motions and outlays separated into the following sub- Amends the Byrd rule to allow revenue los- and appeals in connection therewith, debate totals: ing provisions in reconciliation bills to be shall be limited to 10 hours, to be equally di- ‘‘(A) Defense discretionary. made permanent as long as they do not cause vided between, and controlled by, the Major- ‘‘(B) Nondefense discretionary. an on-budget deficit in the future. ity Leader and Minority Leader or their des- ‘‘(C) Direct spending. TITLE IV: GOVERNMENT SHUTDOWN PREVENTION ignees. Debate on any debatable motion or ‘‘(D) If deemed necessary, other subsets of ACT appeal related to the conference report (or a discretionary and direct spending.’’. message between Houses) shall be limited to Provide for an automatic continuing reso- 1 hour, to be equally divided between, and SEC. 503. CONFORMING THE COMPENSATION OF lution (CR) at the lower of the President’s THE DIRECTOR AND DEPUTY DIREC- controlled by, the mover and the manager of requested level or the previous year’s appro- TOR OF THE CONGRESSIONAL BUDG- priated level. the conference report (or a message between ET OFFICE WITH OTHER LEGISLA- Houses). TIVE BRANCH SUPPORT AGENCIES. TITLE V: STREAMLINING THE BUDGET PROCESS ‘‘(B) DISPOSITION.—After no more than 10 Section 201(a)(5) of the Congressional Eliminates the ‘‘vote-athon’’ at the end of hours of debate on the conference report (or Budget Act of 1974 is amended— the process by adopting procedures similar message between Houses) accompanying a (1) in the first sentence, by striking ‘‘(III)’’ to a post-cloture process for budget resolu- concurrent resolution on the budget, and all and inserting ‘‘(II)’’; and tions and reconciliation bills: S530 CONGRESSIONAL RECORD — SENATE January 19, 1999 Reduce time on a budget resolution from 50 Americans. Low-income families spend such chapter is amended by striking out the to 30 hours (10 hours of which would be re- a higher percentage of their income item relating to subchapter B. served for amendments); than medium- or high-income families Reduce time on amendments from 2 hours on telephone service, and that means By Mr. MCCAIN: to 1 hour; the telephone tax hits low-income fam- S. 95. A bill to amend the Commu- Establish filing deadlines (1st degree nications Act of 1934 to ensure that amendments must be filed by 15th hour; 2nd ilies much harder. For that reason the Congressional Budget Office has con- public availability of information con- degree amendments must be filed by 20th cerning stocks traded on an established hour); cluded that increases in the telephone After all time expires, require vote on any tax would have a greater impact on stock exchange continues to be freely pending amendments and then final passage; low-income families than tax increases and readily available to the public Make sense of the Senate amendments on on alcohol or tobacco products. And a through all media of mass communica- budget resolutions and reconciliation bills study by the American Agriculture tion; to the Committee on Commerce, nongermane; and, Science, and Transportation. Adopt same procedures for reconciliation Movement concluded that excise taxes THE TRADING INFORMATION ACT bills. like the telephone tax impose a dis- Modifies the scope of the budget resolution proportionately large tax burden on Mr. MCCAIN. Mr. President, I rise to to be major categories of spending instead of rural customers, too, who rely on tele- introduce the Trading Information Act. 20 individual functions. phone service in isolated areas. In 1998, Americans continued to dis- But, in addition to being unfair and cover the Internet for the increased ac- By Mr. MCCAIN: unnecessary, there is another reason cess to information and entertainment S. 94. A bill to repeal the telephone why we should eliminate the telephone it provides, and as a more convenient excise tax; to the Committee on Fi- excise tax. Implementation of the means of purchasing goods. Americans nance. Telecom Act of 1996 requires all tele- also continued to discover the Internet REPEAL OF THREE PERCENT FEDERAL EXCISE communications carriers—local, long- as a more direct means of making and TAX distance, and wireless—to incur new managing investments. Mr. MCCAIN. Mr. President, I rise to costs in order to produce a new, more Online stock trading is growing at a introduce a bill to repeal the three per- competitive market for telecommuni- phenomenal pace. According to cent federal excise tax that all Ameri- cations services of all kinds. Forrester Research, there are more cans pay every time they use a tele- Unfortunately, the cost increases are than 3 million online accounts, and phone. arriving far more quickly than the that number is expected to exceed 14 Under current law, the federal gov- new, more competitive market. The million by 2002. In fact, the number of ernment taxes you three percent of Telecom Act created a new subsidy online traders in 1998 doubled from your monthly phone bill for the so- program for wiring schools and librar- 1997, as it did from 1996. called ‘‘privilege’’ of using your phone ies to the Internet, and the cost of Trading over the Internet is provid- lines. This tax was first imposed one funding that subsidy has increased bills ing more Americans with the oppor- hundred years ago. To help finance the for business and residential users of tunity to increase their personal Spanish-American War, the federal long-distance telephone service and for wealth, and to participate in the cur- government taxed telephone service, consumers of wireless services. rent growth in the market. New dis- which in 1898 was a luxury service en- Mr. President, the fact that the count brokerages, high-speed Internet joyed by relatively few. The tax re- Telecom Act has imposed new charges access, and ‘‘real time’’ market up- appeared as a means of raising revenue on consumers’ bills makes it absolutely dates are all contributing to the for World War I, and continued as a incumbent upon us to strip away any growth of online trading. The Trading revenue-raiser during the Great De- unnecessary old charges. And that Information Act will help to preserve pression, World War II, the Korean and means the telephone excise tax. this growing trend. Vietnam Wars, and the chronic federal Mr. President, the telephone excise The Trading Information Act will en- budget deficits of the last twenty tax isn’t a harmless artifact from by- sure that online traders will continue years. gone days. It collects money for wars to have access to information relating Fortunately for telephone subscrib- that are already over, and for budget to financial markets which they rely ers, we are enjoying some long-overdue deficits that no longer exist, from peo- on to properly manage their assets. good news: thanks to the Balanced ple who can least afford to spend it now Whether watching a stock ticker on Budget Act enacted by the Congress in and from people who are footing higher television, receiving up-to-date infor- 1997, we are now expecting budget sur- bills as a result of the 1996 Telecom Act mation over a cell phone or pager, or pluses for the next decade, perhaps as implementation. That’s unfair, that’s logging on with an online brokerage much as $700 billion. Mr. President, wrong, and that must be stopped. firm, Americans must continue to have just as it did in the 105th Congress, San Juan Hill and Pork Chop Hill unfettered access to this vital informa- that announcement should mean the have now gone down in history, and so tion, and this bill will ensure they con- end of the federal phone excise tax. should this tax. tinue to have it. Here’s why. First of all, the tele- Mr. President. I ask unanimous con- phone is a modern-day necessity, not sent that the text of the bill be printed By Mr. MCCAIN: like alcohol, or furs, or jewelry, or in the RECORD. S. 96. A bill to regulate commerce be- other items of the sort that the govern- There being no objection, the bill was tween and among the several States by ment taxes this way. The Congress spe- ordered to be printed in the RECORD, as providing for the orderly resolution of cifically recognized the need for all follows: disputes arising out of computer-based Americans to have affordable tele- S. 94 problems related to processing data phone service when it enacted the 1996 Be it enacted by the Senate and House of Rep- that includes a 2-digit expression of Telecommunications Act. The univer- resentatives of the United States of America in that year’s date; to the Committee on sal service provisions of the Act are in- Congress assembled, Commerce, Science, and Transpor- tended to assure that all Americans, SEC. 1. REPEAL OF TELEPHONE EXCISE TAX. tation. (a) IN GENERAL.—Effective with respect to regardless of where they live or how amounts paid pursuant to bills first rendered Y2K ACT much money they make, have access to on or after January 1, 1999, subchapter B of Mr. MCCAIN. Mr. President, I am affordable telephone service. The tele- chapter 33 of the Internal Revenue Code of pleased to introduce a bill today to phone excise tax, which bears no rela- 1986 (26 U.S.C. 4251 et seq.) is repealed. For limit and prevent needless and costly tionship to any government service re- purposes of the preceding sentence, in the litigation which is arising as a result of ceived by the consumer, is flatly incon- case of communications services rendered the computer programming problem sistent with the goal of universal tele- before December 1, 1998, for which a bill has commonly known as Y2K. Even before phone service. not been rendered before January 1, 1999, a December 31 arrives lawsuits are begin- bill shall be treated as having been first ren- It’s also a highly regressive and un- dered on December 31, 1998. ning to be filed. This is an unfortunate fair tax that hurts low-income and (b) CONFORMING AMENDMENT.—Effective reflection on our overly litigious soci- rural Americans even more than other January 1, 1999, the table of subchapters for ety, and a situation which needs to be January 19, 1999 CONGRESSIONAL RECORD — SENATE S531 remedied. The Y2K Act takes a step to- stop at the schoolhouse door. Societal tional material. Today they are adapt- ward encouraging technology produc- problems like violence and drugs have able, capable of being fine-tuned to ac- ers to work with technology users and become part of the curriculum of life commodate changes in websites as well consumers to ensure a seamless transi- at many schools. as the evolving needs of individual tion for the 1990’s to the year 2000. Now, however, we are adding another schools and even individual lesson- The purpose of this legislation is to problem to the list. And this particular plans. Best of all, their use will chan- ensure that we look to solving the wolf of a problem will walk into our nel explicit material away from chil- technology glitch known as Y2K rather schools disguised in the worthiest of dren while they are not under parental than clog our courts with years of cost- sheeps’ clothing: the Internet. supervision, while not in any way in- ly litigation. The legislation is de- Today, pornography is widely avail- hibiting the rights of adults who may signed to compensate actual losses, but able on the Internet. According to wish to post indecent material on the to assure that the courts do not punish ‘‘Wired’’ magazine, today there are ap- Web or have access to it outside school defendants who have made good faith proximately 28,000 adult Web sites pro- environs. efforts to remedy the technology fail- moting hard and soft-core pornog- Mr. President, it boils down to this: ure. My goal is to provide incentives raphy. Together, these sites register The same Internet that can benefit our for fixing the potential Y2K failures be- many millions of ‘‘hits’’ by websurfers children is also capable of inflicting fore they happen, rather than create per day. terrible damage on them. For this rea- windfalls for those who litigate. Mr. President, there is no question The bill would also encourage effi- that some of the websurfers who are son, school and library administers cient resolution of failures by requiring accessing these sites are children. who accept universal service support to plaintiffs to afford their potential de- Some, unfortunately, are actively provide students with its intended ben- fendants an opportunity to remedy the searching for these sites. But many efits must also safeguard them against failure and make things right before others literally and unintentionally its unintended harm. I commend the ef- facing a lawsuit. We should encourage stumble across them. forts of those who have recognized this people to talk to each other, to try to Anyone who uses seemingly innoc- responsibility by providing filtering address and remedy problems in a uous terms while searching the World systems in the many educational fa- timely and professional manner. Wide Web for educational or harmless cilities that have already have Internet Physical injuries are not covered by recreational purposes can inadvert- capability. This legislation assures the limitations on litigation and dam- ently run into adult sites. For example, that this responsibility is extended to ages in this bill. In those instances when the term ‘‘H20’’ was typed re- all other institutions as they imple- where a computer date failure is re- cently into a search engine, one of the ment advanced technologies funded by sponsible for personal physical injury, first of over 36,000 sites retrieved led to federally-mandated universal service it is best to leave the remedy to exist- another site titled funds. ing state laws. Further, it would be im- ‘‘www.hardcoresex.com.’’ This site pro- Mr. President, this bill takes a sen- prudent policy to offer any ‘‘safe har- vided the typical warning to those sible approach. It requires schools re- bor’’ in such situations because to do under 18 not to enter—and then pro- ceiving universal service discounts to so might have the undesired result of ceeded to offer a free, uncensored pre- use a filtering system on their comput- discouraging proactive remediation. view of the pornographic material on ers so that objectionable online mate- This bill is a starting point. It pro- the site. And when the searcher at- rials will not be accessible to students. vides an opportunity to begin discus- tempted to escape from the site, new Libraries with more than one computer sion. It is my intention to hold a hear- porn-oriented sites immediately are required to use a filtering system ing in the near future, and to bring this opened. on at least one computer used by mi- bill to mark-up as quickly as full dis- Parents wishing to protect their chil- nors. Filtering technology is itself eli- cussion will permit. I know many of dren from exposure to this kind of ma- gible to be subsidized by the E-rate dis- my colleagues are interested in ad- terial can monitor their children’s count. Schools and libraries must in- dressing this issue as well, and I look Internet use at home. This is a parent’s stall and use filtering or blocking tech- forward to working with them, and proper role, and no amount of govern- nology to be eligible to receive univer- with affected industries and consumers mental assistance or industry self-reg- sal service fund subsidies for Internet to arrive at an acceptable piece of leg- ulation will ever be as effective in pro- access. If schools and libraries do not islation which will benefit industry and tecting children as parental super- do so, they will not be eligible to re- consumers alike. vision. But parents can’t supervise how ceive universal service fund-subsidized their children use the Internet outside discounts and will have to refund any By Mr. MCCAIN (for himself and the home, in schools and libraries. E-rate subsidy funds already paid out. Mr. HOLLINGS): Mr. President, the billions of dollars Some have argued that the use of fil- S. 97. A bill to require the installa- per year the federal government will be tering technology in public schools and tion and use by schools and libraries of giving schools and libraries to enable libraries would amount to censorship a technology for filtering or blocking them to bring advanced Internet learn- under the First Amendment. The Su- material on the Internet on computers ing technology to the classroom will preme Court has found, however, that with Internet access to be eligible to bring in the Internet’s explicit online obscenity is not protected by the First receive or retain universal service as- content as well. These billions of dol- Amendment. And insofar as other sexu- sistance; to the Committee on Com- lars will ultimately be paid for by the ally-explicit material is concerned, the merce, Science, and Transportation. American people. So it is only right bill will not affect an adult’s ability to CHILDREN’S INTERNET PROTECTION ACT that if schools and libraries accept access this information on the Inter- Mr. MCCAIN. Mr. President, I rise these federally-provided subsidies for net, and it will in no way impose any today to introduce The Children’s Internet access, they have an absolute filtering requirement on Internet use Internet Protection Act, which is de- responsibility to their communities to in the home. signed to protect children from expo- assure that children are protected from sure to sexually explicit and other online content that can harm them. Perhaps most important, the bill pro- harmful material when they access the And this harm can be prevented. The hibits the federal government from Internet in school and in the library. prevention lies, not in censoring what prescribing any particular filtering This legislation is substantially simi- goes onto the Internet, but rather in system, or from imposing a different lar to the Internet School Filtering filtering what comes out of it onto the filtering system than the one selected Act, which I introduced in the last ses- computers our children use outside the by the certifying educational author- sion of Congress. home. ity. It thus places the prerogative for This legislation, like its predecessor, Mr. President, Internet filtering sys- determining which filtering system comes to grips with one of the more tem work, and they need not be blunt best reflects the community’s stand- unfortunate aspects of modern life: instruments that unduly constrain the ards precisely where it should be: on that the problems modern life don’t availability of legitimately instruc- the community itself. S532 CONGRESSIONAL RECORD — SENATE January 19, 1999 Mr. President, more and more people ‘‘(4) TIME FOR CERTIFICATION.—The certifi- the bill’s sponsors to enact multi-year are using the Internet each day. Cur- cation required by paragraph (2) or (3) shall legislation extending the Board’s au- rently, there may be as many as 50 mil- be made within 30 days of the date of enact- thorization. Many of us worked toward lion Americans online, and that num- ment of the Childrens’ Internet Protection enacting a reauthorization measure Act, or, if later, within 10 days of the date on ber is expected to at least double by which any computer with access to the last year, but those efforts were unsuc- the millennium. As Internet use in our Internet is first made available in the school cessful due to matters generally unre- schools and libraries continues to or library for its intended use. lated to the Board itself. While those grow, children’s potential exposure to ‘‘(5) NOTIFICATION OF CESSATION; ADDI- rail-related issues remain for some, I harmful online content will only in- TIONAL INTERNET-ACCESSING COMPUTER.— do not believe we should hold the crease. This bill simply assures that ‘‘(A) CESSATION.—A library that has filed STB’s reauthorization hostage and be- universal service subsidies will be used the certification required by paragraph lieve we could consider dual-track (3)(A) shall notify the Commission within 10 to defend them from the very dangers days after the date on which it ceases to use measures—this reauthorization on the that these same subsidies are otherwise the filtering or blocking technology to which one hand and proposals for statutory going to increase. This is a rational re- the certification related. changes on another. Although the dual- sponse to what could otherwise be a ‘‘(B) ADDITIONAL INTERNET-ACCESSING COM- track did not succeed last Congress, I terrible and unintended problem. PUTER.—A library that has filed the certifi- am hopeful that it can in the 106th Mr. President, I ask unanimous con- cation required by paragraph (3)(B) that adds Congress. sent that the text of the bill appear in another computer with Internet access in- The Surface Transportation Board tended for use by the public (including mi- the RECORD. Reauthorization Act of 1999 is straight nors) shall make the certification required forward. First, it proposes to reauthor- There being no objection, the bill was by paragraph (3)(A) within 10 days after that ordered to be printed in the RECORD, as computer is made available for use by the ize the STB for the current fiscal year follows: public. through 2002 and provide sufficient re- S. 97 ‘‘(6) PENALTY FOR FAILURE TO COMPLY.—A sources to ensure the Board is able to Be it enacted by the Senate and House of Rep- school or library that fails to meet the re- continue to carry out its very serious resentatives of the United States of America in quirements of this subsection is liable to responsibilities and duties. Second, it Congress assembled, repay immediately the full amount of all proposes that the Board’s Chairman- universal service assistance it received under SECTION 1. SHORT TITLE. ship be subject to Senate confirmation This Act may be cited as the ‘‘Childrens’ subsection (h)(1)(B). ‘‘(7) LOCAL DETERMINATION OF MATERIAL TO like a host of other Boards and Com- Internet Protection Act’’. BE FILTERED.—For purposes of paragraphs (2) missions throughout the Federal gov- SEC. 2. NO UNIVERSAL SERVICE FOR SCHOOLS and (3), the determination of what material ernmental, including the National OR LIBRARIES THAT FAIL TO IMPLE- MENT A FILTERING OR BLOCKING is to be deemed harmful to minors shall be Transportation Safety Board, the Com- TECHNOLOGY FOR COMPUTERS made by the school, school board, library or modity Futures Trading Commission, WITH INTERNET ACCESS. other authority responsible for making the the Export-Import Bank, and the Con- (a) IN GENERAL.—Section 254 of the Com- required certification. No agency or instru- sumer Product Safety Commission to munications Act of 1934 (47 U.S.C. 254) is mentality of the United States Government name a few. may— amended by adding at the end thereof the Mr. President, I want to inform my following: ‘‘(A) establish criteria for making that de- ‘‘(l) IMPLEMENTATION OF AN INTERNET FIL- termination; colleagues that the Senate Commerce TERING OR BLOCKING TECHNOLOGY.— ‘‘(B) review the determination made by the Committee intends to fully explore the ‘‘(1) IN GENERAL.—An elementary school, certifying school, school board, library, or resource needs of the Board and also secondary school, or library that fails to pro- other authority; or consider limited proposals for statu- vide the certification required by paragraph ‘‘(C) consider the criteria employed by the tory changes advocated by some mem- (2) or (3), respectively, is not eligible to re- certifying school, school board, library, or bers. I know the Chairman of the Sur- other authority in the administration of sub- ceive or retain universal service assistance face Transportation and Merchant Ma- provided under subsection (h)(1)(B). section (h)(1)(B).’’. ‘‘(2) CERTIFICATION FOR SCHOOLS.—To be eli- (b) CONFORMING CHANGE.—Section rine Subcommittee, Senator gible to receive universal service assistance 254(h)(1)(B) of the Communications Act of HUTCHISON, plans to hold hearings on under subsection (h)(1)(B), an elementary or 1934 (47 U.S.C. 254(h)(1)(B)) is amended by the STB and continue the examination secondary school (or the school board or striking ‘‘All telecommunications’’ and in- of STB actions affecting rail service other authority with responsibility for ad- serting ‘‘Except as provided by subsection and rail shipper problems which were ministration of that school) shall certify to (l), all telecommunications’’. initiated during the 105th Congress. the Commission that it has— SEC. 3. FCC TO ADOPT RULES WITHIN 4 MONTHS. As I have stated on numerous occa- ‘‘(A) selected a technology for computers The Federal Communications Commission sions, rail service and rail shipper with Internet access to filter or block mate- shall adopt rules implementing section 254(l) rial deemed to be harmful to minors; and of the Communications Act of 1934 within 120 issues warrant serious consideration. ‘‘(B) installed, or will install, and uses or days after the date of enactment of this Act. These matters have received extensive will use, as soon as it obtains computers and comprehensive examination under with Internet access, a technology to filter By Mr. MCCAIN (for himself, Mr. Subcommittee Chairman HUTCHISON’s or block such material. HOLLINGS, and Mr. LOTT): able leadership and will continue as ‘‘(3) CERTIFICATION FOR LIBRARIES.— S. 98. A bill to authorize appropria- important oversight issues under the ‘‘(A) LIBRARIES WITH MORE THAN 1 INTER- tions for the Surface Transportation Committee’s jurisdiction. I strongly NET-ACCESSING COMPUTER.—To be eligible to receive universal service assistance under Board for fiscal years 1999, 2000, 2001, believe, however, specific rail service subsection (h)(1)(B), a library that has more and 2002, and for other purposes; to the and rail shipper problems and cases are than 1 computer with Internet access in- Committee on Commerce, Science, and best resolved by the Board. That is why tended for use by the public (including mi- Transportation. Congress must provide the Board with nors) shall certify to the Commission that it SURFACE TRANSPORTATION BOARD the resources and legal authority nec- has installed and uses a technology to filter REAUTHORIZATION ACT OF 1999 essary for it to continue to carry out or block material deemed to be harmful to Mr. MCCAIN. Mr. President, today I its statutory duties fully and fairly, minors on one or more of its computers with am introducing the Surface Transpor- and on a timely basis. Internet access. ‘‘(B) LIBRARIES WITH ONLY 1 INTERNET-AC- tation Board (STB) Reauthorization The STB is one of our smallest Fed- CESSING COMPUTER.—A library that has only Act of 1999. I am pleased Senator HOL- eral entities and it has very limited re- 1 computer with Internet access intended for LINGS, the Ranking member of Senate sources. It is imperative that we reau- use by the public (including minors) is eligi- Committee on Commerce, Science, and thorize the Board so that it can con- ble to receive universal service assistance Transportation and Majority Leader tinue to produce the vast workload it under subsection (h)(1)(B) even if it does not LOTT, also a distinguished member of has achieved since its inception in 1996. use a technology to filter or block material our Committee, have joined me in We must do our part to assist the deemed to be harmful to minors on that Board in fulfilling its statutory duties computer if it certifies to the Commission sponsoring this important legislation. that it employs a reasonably effective alter- The introduction of this bill on this, responsibly and independently. The Ad- native means to keep minors from accessing the first day in the 106th Congress for ministration and Congress must also material on the Internet that is deemed to introducing legislation, is intended to take necessary action to ensure a fully be harmful to minors. demonstrate the firm commitment of constituted Board. January 19, 1999 CONGRESSIONAL RECORD — SENATE S533 I look forward to working on this im- tlements with their customers and em- come law or if there is no governing portant transportation legislation and ployees than they have in many years. continuing resolution in place after the hope my colleagues will agree to join I commend the Board for initiating start of Fiscal Year 2000. with me and the other sponsors in ex- government action that results in pri- Mr. President, this legislation is im- peditiously moving this necessary re- vate sector settlements. Ultimately portant. It must be done soon, and I in- authorization through the legislative this sort of settlement has greater tend to seek early action on this bill. I process. chance of realistic dispute resolution. believe the lesson of the last 4 years is Mr. HOLLINGS. Mr. President, I rise Congress should feel fortunate to have that we cannot allow the Government today to support the reauthorization of an agency with the competence and to be shut down again, nor can we the Surface Transportation Board credibility to move issues forward in allow the threat of a Government shut- (Board). As I have said many times be- such a positive direction. down to be so imminent that we fiscal fore, the Board performs a vital role Because we need the Board, and be- conservatives are forced to acquiesce regulating the interests of our railroad cause the Board has done a fine job, I to the appropriation of billions of dol- and other surface transportation indus- am here today supporting the introduc- lars for projects that do not serve our tries. Under the able and forward-look- tion of a reauthorization bill. I know nation’s best interests. ing leadership of Linda Morgan, the that some tough legislative issues re- What this legislation does is ensure Board’s Chairman, who was with us on garding transportation regulation may that the Government will not shut the Commerce Committee for many come our way this session, and I look down and that Government shutdowns years, the Board with its small staff forward to working with the Board and cannot be used for political gain. This has put out more work, and higher my colleagues on those matters. What- safety net continuing resolution basi- quality work, than much larger agen- ever the resolution of those matters, cally would set spending for fiscal year cies. Most significantly, unlike many we need the stability and continuity in 2000 at 98 percent of 1999 funding levels. other agencies, the Board is not afraid addressing these issues that reauthor- The resolution would take effect only to tackle the hard issues, and to put ization legislation for the Board will if the Congress and the President have out decisions that are fair, well-rea- provide. not completed their work on time. soned, and independent of political ex- The Board, working with the law we Mr. President, let me make it clear pediency. For example, the Board’s un- gave it, has done its job. I want to that this bill only applies to the Fiscal precedented and focused actions in thank the Board in general, and Chair- Year 2000 appropriations. I believe that handling the recent rail service crisis man Morgan in particular, who has my it should be expanded to make the stat- in the West provided the appropriate unqualified support, for a job well utory continuing resolution a perma- mix of government intervention and done. The Board has been confronted nent safety net to prevent disruptive private-sector initiative. with some of the most difficult and government shutdowns. More recently, at the end of 1998, at fundamental issues to challenge rail We all saw the effects of gridlock in the request of Chairman MCCAIN and transportation in many years. The the past. No one wins when the Govern- Senator HUTCHISON, the Board reviewed agency has met these issues head on ment shuts down. Shutdowns only con- rail competition and issued several de- with forthrightness and resolve, taking firm the American people’s suspicions cisions in controversial cases, and into account the interests of all par- that we are more interested in political made several recommendations to Con- ties. However, I am concerned for the gain than doing the nation’s business. gress, that reflect a balanced and com- Board’s future; the Board has not had The American people are tired of grid- prehensive view of the transportation the opportunity to bring in new person- lock. They want the Government to industry and the fundamental issues nel to replace personnel that will be of work for them, not against them. that confront it. The Board recently retirement age. It is incumbent on us Our Founding Fathers would have released its findings. In rendering these that we provide this agency the nec- been ashamed of our inability to exe- decisions, the Board, which is account- essary resources to adequately train cute the power of the purse in a respon- able to Congress, has acted responsibly new personnel, and prepare them to ad- sible fashion. I am sure they would and has provided a valuable service in dress the rail and other surface issues have been quite shocked by the 27 days resolving issues within its jurisdiction of the future. in late 1995 that the Government was such as the determination of market I think that much credit is due the shut down, the 13 continuing resolu- dominance, and in raising others, such Board for facilitating more private-sec- tions that had to be passed to provide as open access, more appropriately ad- tor dialogue, initiative, and resolution temporary spending authority, and the dressed by Congress. than has ever been undertaken before, almost $6 billion in blackmail money As anyone who has read the com- and for raising and tackling issues in that was given to the Administration prehensive letter from Chairman MOR- ways that have never been undertaken to ensure that the Government did not GAN to Senators MCCAIN and HUTCHISON before. Once again, I commend the shut down a third time in Fiscal Year reporting on the Board’s rail access Board on a job well done. The Nation 1966. and competition proceeding knows, the needs agencies like the Board, and I en- Although Republicans shouldered the Board has acted creatively, aggres- thusiastically support the reauthoriza- blame for the 1995 Government shut- sively, and decisively in tackling hard tion bill. down, President Clinton and his col- issues within its jurisdiction, and in leagues were equally at fault for using making suggestions to Congress as to By Mr. MCCAIN (for himself, Mrs. it for their political gain. Republicans how to address remaining issues of con- HUTCHISON, Mr. STEVENS, Mr. were outmaneuvered by President Clin- tention between railroads and their CRAIG, Mr. WARNER, and Mr. ton because we did not realize that he shippers, and between railroads and ASHCROFT): was willing to use the budget process their employees. One of its decisions fi- S. 99. A bill to provide for continuing for his own political purposes. nalized rules that for the first time in the absence of regular appropria- We also cannot let the threat of an- provide various specific avenues for re- tions for fiscal year 2000; to the Com- other Government shutdown force us lief in cases of localized poor rail serv- mittee on Appropriations. to adopt another fiscal debacle like the ice, and another decision took steps to GOVERNMENT SHUTDOWN ACT OF 1999 FY 1999 Omnibus Appropriations Bill. facilitate the review of rail rate rea- Mr. MCCAIN. Mr. President, today I The political finagling that led to the sonableness cases by eliminating cer- and Senator HUTCHISON, Senator STE- extra $20 billion in pork-barrel spend- tain evidentiary thresholds. VENS, Senator CRAIG, Senator WARNER, ing in that bill made mockery of the Linda Morgan as Board Chairman and Senator ASHCROFT are introducing budget process and insulted the inten- pressed the railroad industry to be the Government Shutdown Prevention tion of the framers to give Congress more directly accountable to the needs Act of 1999. This bill creates a statu- the power of the purse. The only reason of their customers, and has requested tory continuing resolution as sort of a the Congress passed such a monstrosity them to reach out directly to their safety net funding mechanism, which was the ever-present specter of another shippers and employees. This has al- would be triggered only if the Fiscal government shutdown and Washington lowed the railroads to reach more set- Year 2000 appropriation acts do not be- gridlock in an election year. S534 CONGRESSIONAL RECORD — SENATE January 19, 1999 The Government Shutdown Act of spending. Much of this so-called ‘‘emer- authority. We need the line-item veto 1999 does not erode the power of the ap- gency spending’’ is really everyday, to restore balance to the federal budget propriators. It gives them ample oppor- garden-variety, special interest, pork- process. tunity to do their job. It is only if the barrel spending paid for by robbing bil- The Supreme Court struck down the appropriations process is not com- lions from the budget surplus. 1996 Line-Item Veto Act on the basis pleted by the beginning of the fiscal This monstrous bill passed because that the Constitution requires every year, that the safety net continuing Congress was forced to either pass it, bill to be presented to the President for resolution will go into effect. In addi- or face another government shutdown. his approval or disapproval. In other tion, I emphasize that entitlements are The Government Shutdown Prevention words, the decision was not based on fully protected in this legislation. The Act of 1999 would make it more dif- the concept that transferring power to bill specifically states that entitle- ficult for opportunistic politicians to the President of the United States ments such as Social Security—as obli- put the American public at risk by lacked constitutionally, but the fact gated by law—will be paid regardless of threatening to shutdown essential gov- that bills are to be sent to the Presi- what appropriations bills are passed or ernment functions if Congress cannot dent for approval in their entirety. not passed. agree on spending priorities and poli- Separate enrollment as a line-item We saw in 1995 how politically moti- cies. veto tool is not a new concept. This vated government shutdowns hit all A 1991 GAO report confirmed that concept is not controversial. The Sen- Americans hard. In my State of Ari- permanent funding lapse legislation is ate adopted S. 4, a separate enrollment zona, during the Government shutdown a necessity. In their report they stated, bill in the 104th Congress, by a vote of the Grand Canyon was closed for the ‘‘Shutting down the Government dur- 69 to 29. first time in 76 years. I heard from peo- ing temporary funding gaps is an inap- Legal scholars contend that the sepa- ple who worked close to the Grand Can- propriate way to encourage com- rate enrollment concept is constitu- yon. These were not Government em- promise on the budget.’’ tional. Congress has the right to ployees. These were independent small Let us show the American people present a bill to the President of the business men and women. They told me that we have learned our lessons from United States. Separate enrollment that the shutdown cost them thousands the 1995 Government shutdown and the merely addresses the question of what of dollars because people could not go 1998 fiscal debacle. Passing this preven- constitutes a bill. It does not erode or to the park. According to a CRS report, tive measure will go a long way to re- interfere with the presentment of the local communities near national parks store America’s faith that politics or bill to the President. Under the rule- alone lost an estimated $14.2 million stalled negotiations will not stop Gov- making clause, Congress alone can de- per day in tourism revenues as a direct ernment operations. It will show our termine the procedures for defining and result of the Government shutdown, for constituents that we will never again enrolling a bill. Separate enrollment is a total of nearly $400 million over the allow a Government shutdown or constitutional and will clearly work. Separate enrollment, as a line-item course of the shutdown. threat of a Government shutdown to be veto tool, will be a vital force in elimi- The cost of the last Government used for political gain. nating wasteful, unnecessary pork-bar- shutdown cannot be measured in just We anticipate strong support from rel spending. Unfortunately, as we saw dollars and cents. During the 1995 shut- the Leadership, and urge them to move last year, pork-barrel spending is alive down, millions of Americans could not this legislation forward as soon as pos- and well. get crucial social services. For exam- sible. This is must-pass legislation. On October 21, 1998, Congress passed ple, 10,000 new Medicare applications, Neither party can afford another the FY 1999 Omnibus Appropriations 212,000 Social Security card requests, breach of faith with the American peo- Bill—the worst example of pork-barrel 360,000 individual office visits and ple. Our constituents are tired of con- spending in my memory. This was a 800,000 toll-free calls for information stantly being disappointed by the ac- 4,000 page, 40-pound, non-amendable, and assistance were turned away each tions of Congress and the President. budget-busting bill which provided day. There were even more delays in That is why this legislation is so im- over a half-trillion dollars to fund 10 services for some of the most vulner- portant. Never again, should the Amer- Cabinet-level federal departments. The able in our society, including 13 million ican public’s hard-earned dollars be bill exceeded the budget ceiling by $20 recipients of AFDC, 273,000 foster care used as ransom to prevent a politically billion for what is euphemistically children, over 100,000 children receiving motivated government shutdown. called emergency spending, much of adoption assistance services and over which is really everyday, garden-vari- By Mr. MCCAIN: 100,000 Head Start children—not to ety, special-interest, pork-barrel S. 100. A bill to grant the power to mention the new patients that were spending, paid for by robbing billions the President to reduce budget author- not accepted into clinical research cen- from the budget surplus. ters, the 7 million visitors who could ity; to the Committee on the Budget The omnibus spending bill made a not attend national parks, or the 2 mil- and the Committee on Governmental mockery of the Congress’ role in fiscal lion visitors turned away at museums Affairs, jointly, pursuant to the order matters. It was a betrayal of our re- and monuments. And the list goes on of August 4, 1977, with instructions sponsibility to spend the taxpayers’ and on. that if one Committee reports, the dollars wisely and enact laws and poli- In addition, our Federal employees other Committee have thirty days to cies that reflect the best interests of were left in fear wondering whether report or be discharged. all Americans, rather than the special they would be paid, would they have to THE SEPARATE ENROLLMENT ACT OF 1999 interests of a few. go to work, would they be able to pay Mr. MCCAIN. Mr. President, today, I We cannot afford this magnitude of their bills on time. In my State of Ari- will reintroduce the Separate Enroll- park-barrel spending when we have ac- zona, for example, of the 40,383 Federal ment Act of 1999. This bil requires each cumulated a multi-trillion dollar na- employees, over 15,000 of them were targeted tax benefit or spending item tional debt. Right now, today, we use a furloughed in the 1995 Government in legislation to be enrolled as a sepa- huge portion of our federal budget to shutdown. rate bill before it is sent to the Presi- make the interest payments on the na- As bad as the 1995 government shut- dent. If the President chooses to veto tional debt. In fact, the annual interest down was, the fiscal nightmare known one of these items, each of these vetoes payment almost equals the entire as the FY 1999 Omnibus Appropriations would be returned to Congress sepa- budget for national defense. We should Bill, was equally repulsive. This 4,000- rately for an override vote. be paying down the national debt, sav- page, 40-pound, nonamendable, budget- Last year, the Supreme Court struck ing Social Security, and providing tax busting bill provided over a half-tril- down the line item vote on Constitu- cuts for hard-working middle class lion dollars to fund 10 Cabinet-level tional grounds in a 6–3 decision. I was Americans, not indulging in wasteful, federal departments. To make matters very saddened by this decision. Polls unnecessary spending. worse, this bill exceeded the budget from previous years indicate that 83 The objective of the Separate Enroll- ceiling by $20 billion for what is percent of the American people support ment bill, and the Line-Item Veto be- euphemistically called emergency giving the President the line-item veto fore it, is to curb wasteful pork-barrel January 19, 1999 CONGRESSIONAL RECORD — SENATE S535 spending by giving the President the products. The importance of exports to process to identify those countries authority to eliminate individual U.S. agriculture has never been great- which employ unfair trade practices spending items. The Separate Enroll- er. This legislation will improve oppor- against U.S. agricultural commodities ment Act of 1999 will be our new tool to tunities, allowing us to take advantage and value-added products. Once in restore fiscal responsibility to the way of our dominant position in world food place, remedies which level the playing we spend Americans’ hard-earned dol- trade. field are provided. This authority is lars. Each year, agricultural products important as we strive to break down This is not a partisan issue. The issue make a positive contribution to our trade barriers and eliminate practices is fiscal responsibility. We have a international balance of payments. No which foreign countries use to bar U.S. President, we have 100 Senators, and sector of the U.S. economy is more agricultural exports. we have 435 Representatives. It is hard critically tied to international trade The most important thing we can to place responsibility upon any one than agriculture. Approximately three give to farmers is the ability to export person for profligate spending. Thus, out of ten acres of our agricultural pro- their products abroad. We can give to no one is accountable for our runaway duction is exported. Farmers are reli- our farmers the enhanced ability to budget process. ant on the ability to export. We can sell their products in existing and un- Past Presidents have sought the line- only secure our farmers’ and ranchers’ tapped markets. Mr. President, U.S. time veto. Congress finally agreed in future opportunities by removing trade agriculture is the most productive in 1996, when we passed the Line-Item barriers—those we impose on ourselves the world. This legislation will allow Veto Act, to give the President the and those imposed by others. us to take advantage of that position. ability to surgically remove wasteful Mr. President, this bill addresses sev- I ask unanimous consent that the leg- spending for appropriations and au- eral items, none of which is more im- islation and a summary be printed in thorization bills. It would also estab- portant than sanctions reform. Unilat- the RECORD. lish greater accountability in the Exec- eral economic sanctions often keep our There being no objection, the items utive branch for fiscal decisions and farmers out of major markets. Such were ordered to be printed in the provide much-needed checks and bal- sanctions do not preclude the targeted RECORD, as follows: ances on Congressional spending country from buying agricultural com- S. 101 sprees. modities elsewhere. Rather, sanctions Be it enacted by the Senate and House of Rep- Unfortunately when given the Line- often have a more profound effect on resentatives of the United States of America in Item Veto authority in 1997, the Presi- our own country. U.S. competitors are Congress assembled, dent failed to exercise the authority in often quick to offset the effect of our SECTION 1. SHORT TITLE. a meaningful fashion. Of over $8 billion sanctions, in the process harming U.S. This Act may be cited as the ‘‘United in wasteful spending, he excised $491 commercial interests. Contracts are States Agricultural Trade Act of 1999’’. lost and our status as a reliable busi- SEC. 2. OBJECTIVES FOR AGRICULTURAL NEGO- million from the annual appropriations TIATIONS. bills. And then the Supreme Court ness partner suffers. A cardinal test of It is the sense of Congress that the prin- struck the Line-Item Veto Act down. foreign policy is to determine that, cipal agricultural trade negotiating objec- Restoring this power this year in the when we use sanctions internationally, tives of the United States for future multi- form of the Separate Enrollment Act our actions do less harm to ourselves lateral and bilateral trade negotiations, in- would if exercised responsibly by the than to others. Unilateral food sanc- cluding the World Trade Organization, shall President, reduce the excesses of the tions fail that test. be to achieve, on an expedited basis, and to congressional budget process that focus Bans on food exports strike at the the maximum extent feasible, more open and most basic human need, the availabil- fair conditions for trade in agricultural com- on locality-specific earmarking and modities by— cater to special interests, not the na- ity of food. Authoritarian regimes can (1) developing, strengthening, and clarify- tional interest. survive food sanctions. It is the people ing rules for agricultural trade, including Mr. President, I simply ask my col- of these nations that suffer. The use of disciplines on restrictive or trade-distorting leagues to be fair and reasonable when food as a weapon should, in most cases, import and export practices, including— addressing the issue of fiscal respon- be abandoned. This legislation exempts (A) enhancing the operation and effective- sibility. The line-item veto, in the from unilateral economic sanctions hu- ness of the relevant Uruguay Round Agree- manitarian and commercial farm ex- ments designed to define, deter, and discour- form of separate enrollment, is vital to age the persistent use of unfair trade prac- curbing wasteful pork-barrel spending ports and gives the President the au- tices; and and restoring the American people’s re- thority to waive the food exemption. (B) enforcing and strengthening rules of spect for their elected representatives. Mr. President, sanctions reform is the World Trade Organization regarding— only one aspect of improving market (i) trade-distorting practices of state trad- By Mr. LUGAR (for himself, Mr. access. Significant tariff and non-tariff ing enterprises; and ROBERTS, Mr. CRAIG, Mr. FITZ- barriers still inhibit the free flow of ag- (ii) the acts, practices, or policies of a for- eign government which unreasonably— GERALD, and Mr. COCHRAN): ricultural goods. The World Trade Or- (I) require that substantial direct invest- S. 101. A bill to promote trade in ganization will hold an important ment in the foreign country be made as a United States agricultural commod- meeting later this year in our own condition for carrying on business in the for- ities, livestock, and value-added prod- country. The talks which will com- eign country; ucts, and to prepare for future bilateral mence at this meeting offer an impor- (II) require that intellectual property be li- and multilateral trade negotiations; to tant opportunity to expand overseas censed to the foreign country or to any firm the Committee on Finance. markets for our agricultural exports. of the foreign country; or (III) delay or preclude implementation of a UNITED STATES AGRICULTURAL TRADE ACT OF One goal of this legislation is to report of a dispute panel of the World Trade 1999 achieve more fair and open conditions Organization; Mr. LUGAR. Mr. President, I rise of trade, and the bill I introduce today (2) increasing United States agricultural today to introduce legislation to open provides important guidelines for these exports by eliminating barriers to trade (in- foreign markets for U.S. agricultural upcoming negotiations. It aims to open cluding transparent and nontransparent bar- exports and raise the profile of agri- foreign markets and eliminate unfair riers); (3) eliminating other specific constraints culture in our nation’s trade agenda. and negative trade policy. Further- to fair trade and more open market access in By enacting the 1996 FAIR Act, com- more, a ‘‘special 301’’ provision for ag- foreign markets, such as export subsidies, monly known as Freedom to Farm, we riculture is included in this bill. This quotas, and other nontariff import barriers; gave farmers the right to make plant- language is similar to S.219 which was (4) developing, strengthening, and clarify- ing decisions themselves, free from introduced by Senator DASCHLE and ing rules that address practices that unfairly government controls. But the FAIR Senator GRASSLEY in the 105th Con- limit United States market access opportu- Act is a compact. Freedom to Farm gress and generated bi-partisan support nities or distort agricultural markets to the detriment of the United States, including— means freedom to sell. In exchange for within agriculture. It provides for an (A) unfair or trade-distorting activities of phasing out subsidies, Congress prom- investigative process specifically tai- state trading enterprises and other adminis- ised its efforts to secure free, fair, and lored to agricultural trade. The U.S. trative mechanisms that result in inad- open markets for U.S. agricultural Trade Representative will use this equate price transparency; S536 CONGRESSIONAL RECORD — SENATE January 19, 1999 (B) unjustified restrictions or commercial on the date of enactment of this Act 180 days reputation of United States farmers as reli- requirements affecting new technologies, in- after the date of enactment of this Act un- able suppliers of agricultural commodities in cluding biotechnology; less the President has determined that the general, and of specific commodities identi- (C) unjustified sanitary or phytosanitary exemption should not apply to the sanction. fied by the Secretary. restrictions; and (d) REPORT.— (e) EFFECTIVE DATE.— Except as provided (D) restrictive rules in the establishment (1) IN GENERAL.—If the President deter- in subsection (c)(3), this section shall become and administration of tariff-rate quotas; mines that the exemption under subsection effective upon the date of enactment of this (5) ensuring that there are reliable suppli- (b) should not apply to a unilateral economic Act. ers of agricultural commodities in inter- sanction, the President shall provide a re- SEC. 5. CONGRESSIONAL OVERSIGHT AND CON- national commerce by encouraging countries port to the Committee on Agriculture in the SULTATION FOR AGRICULTURAL NE- to treat foreign buyers no less favorably House of Representatives, and the Commit- GOTIATIONS. than domestic buyers of the commodity or tee on Agriculture, Nutrition, and Forestry Section 161 of the Trade Act of 1974 (19 USC product involved; and in the Senate— 2211) is amended by adding at the end a new (6) eliminating barriers for meeting the (A) in the case of a unilateral economic subsection (d) that reads as follows— food needs of an increasing world population sanction reviewed under subsection (c), with- ‘‘(d) CONGRESSIONAL OVERSIGHT GROUP FOR through the use of biotechnology by ensur- in 15 days from the date of the determination AGRICULTURAL NEGOTIATIONS.— ing market access to United States commod- in paragraph (2) of that subsection; and ‘‘(1) There is established a Congressional ities derived from biotechnology that is sci- (B) in the case of a unilateral economic Oversight Group for Agricultural Negotia- entifically defensible, opposing the establish- sanction that is imposed after the date of en- tions (Oversight Group) that shall provide ment of protectionist trade measures dis- actment of this Act, at the time of the impo- oversight and guidance with respect to agri- guised as health standards, and protesting sition of the sanction. cultural trade policy and negotiation of agri- continual delays by other countries in their (2) CONTENTS OF REPORT.—The report shall cultural trade issues. approval processes—which constitute non- contain— ‘‘(A) Subject to clauses (i) and (ii), the tariff trade barriers. (A) an explanation why, because of reasons Oversight Group shall consist of 3 members SEC. 3. DEFINITIONS. of foreign policy or national security, the ex- of the Committee on Agriculture, Nutrition, emption should not apply to the unilateral As used in this Act, the terms ‘‘agricul- and Forestry of the Senate and 3 members of economic sanction; and tural commodity’’ and ‘‘United States agri- the Committee on Agriculture of the House (B) an assessment by the Secretary of cultural commodity’’ have the meanings pro- of Representatives. Agriculture— vided in section 102 (1) and (7) of the Agricul- ‘‘(i) The President pro tempore of the Sen- (i) regarding export sales— tural Trade Act of 1978, respectively. ate, upon the recommendation of the Chair- (I) in the case of a sanction in effect as of man of the Committee on Agriculture, Nutri- SEC. 4. AGRICULTURAL COMMODITIES, LIVE- the date of enactment of this Act, whether tion, and Forestry, shall select two members STOCK, AND PRODUCTS EXEMPT markets in the sanctioned country or coun- FROM SANCTIONS. from the majority party, and one member tries present a substantial trade opportunity from the minority party, of the Senate. (a) DEFINITION—UNILATERAL ECONOMIC for export sales of a United States agricul- ‘‘(ii) The Speaker of the House of Rep- SANCTION.—The term ‘‘unilateral economic tural commodity; or resentatives, upon the recommendation of sanction’’ means any prohibition, restric- (II) in the case of any other sanction, the the Chairman of the Committee on Agri- tion, or condition on economic activity, in- extent to which any country or countries to culture, shall select 2 members from the ma- cluding economic assistance, with respect to be sanctioned or likely to be sanctioned are jority party, and one member from the mi- a foreign country or foreign entity that is markets that accounted for, in the preceding nority party, of the House of Representa- imposed by the United States for reasons of calendar year, more than 3 percent of all ex- tives. foreign policy or national security, except in port sales from the United States of an agri- ‘‘(B) Members of the House and Senate who a case in which the United States imposes cultural commodity; are selected as members of the Oversight the measure pursuant to a multilateral re- (ii) regarding the effect on United States Group shall be accredited by the United gime and the other members of that regime agricultural commodities— States Trade Representative as official ad- have agreed to impose substantially equiva- (I) in the case of a sanction in effect as of visers to the United States delegations to lent measures. the date of enactment of this Act, the poten- international conferences, meetings, and ne- (b) EXEMPTION.— tial for exports of United states commodities gotiating sessions relating to agricultural (1) IN GENERAL.—Subject to paragraph (2), in the sanctioned country or countries; and trade policy and negotiation of agricultural and notwithstanding any other provision of (II) in the case of any other sanction, the trade issues. law, in the case of a unilateral economic likelihood that exports of agricultural com- ‘‘(2) All negotiating proposals by the sanction imposed by the United States on modities from the United States will be af- United States and negotiations that affect another country, the following shall be ex- fected by the unilateral economic sanction agricultural trade shall be reviewed by the empt from the unilateral economic or by retaliation by any country to be sanc- Oversight Group prior to an agreement being sanction— tioned or likely to be sanctioned, and spe- initialed by the President. (A) programs administered through Public cific commodities which are most likely to ‘‘(3) All information about negotiating pro- Law 480 (7 U.S.C. 1701 et. seq.); be affected; posals by the United States and foreign (B) programs administered through section (iii) regarding producer income— countries affecting agricultural trade nego- 416 of the Agricultural Act of 1949 (7 U.S.C. (I) in the case of a sanction in effect as of tiations shall be made available to the Over- 1431); the date of enactment of this Act, the poten- sight Group by the United States Trade Rep- (C) the program administered through sec- tial for increasing the income of producers of resentative. tion 1113 of the Food Security Act of 1985 (7 the commodities involved; and ‘‘(4) Within 60 days of enactment of this U.S.C. 1736–1); and (II) in the case of any other sanction, the Act, the United States Trade Representative (D) commercial sales and humanitarian as- likely effect on incomes of producers of the shall establish guidelines for ensuring the sistance involving agricultural commodities. commodities involved; useful and timely supply of information to (2) DETERMINATION BY PRESIDENT.— If the (iv) regarding displacement of United the Oversight Group and the communication President determines that the exemption States suppliers— of the oversight and guidance by the Over- under paragraph (1) should not apply to the (I) in the case of a sanction in effect as of sight Group to the United States Trade Rep- unilateral economic sanction for reasons of the date of enactment of this Act, the poten- resentative. foreign policy or national security, the tial for increased competition for United ‘‘(A) The guidelines shall establish proce- President may include the activities de- States suppliers of the agricultural commod- dures for the United States Trade Represent- scribed in paragraph (1) in the unilateral ity in countries that are not subject to a ative to provide to the Oversight Group— economic sanction. sanction; and ‘‘(i) information regarding the principal (c) CURRENT SANCTIONS.— (II) in the case of any other sanction, the multilateral and bilateral negotiating objec- (1) IN GENERAL.—Subject to paragraph (2), extent to which the unilateral economic tives affecting agricultural trade, and the the exemption under subsection (b) shall sanction would permit foreign suppliers to progress being made toward their achieve- apply to unilateral economic sanctions that replace United States suppliers; and ment; are in effect as of the date of enactment of (v) regarding the reputation of United ‘‘(ii) information regarding the implemen- this Act. States farmers as reliable suppliers— tation, administration, and effectiveness of (2) PRESIDENTIAL REVIEW.—The President (I) in the case of a sanction in effect as of recently concluded multilateral and bilat- shall, within 90 days of the date of enact- the date of enactment of this Act, whether eral agricultural trade agreements and the ment of this Act, review all unilateral eco- removing the sanction would increase the resolution of agricultural trade disputes; nomic sanctions under this subsection to de- reputation of United States farmers as reli- ‘‘(iii) a schedule for an initial meeting, termine whether the exemption under sub- able suppliers of agricultural commodities in prior to the commencement of negotiations section (b) should apply to the sanction. general, and of specific commodities identi- involving agricultural trade, between the (3) EFFECTIVE DATE.—The exemption under fied by the Secretary; and Oversight Group and the United States subsection (b) shall become effective for uni- (II) in the case of any other sanction, the Trade Representative, about the objectives lateral economic sanctions that are in effect likely effect of the proposed sanction on the of the negotiations; January 19, 1999 CONGRESSIONAL RECORD — SENATE S537 ‘‘(iv) written or oral briefings about the deny fair and equitable market access to list of foreign countries identified under sub- status of ongoing negotiations involving ag- United States agricultural commodities; section (a) and shall make such revisions to ricultural trade; ‘‘(B) engage in discriminatory nontariff the list as may be required by reason of the ‘‘(v) prior to the President initialing the trade barriers for the importation of United action under subsection (c). trade agreement, written or oral briefings States agricultural commodities that are not ‘‘(f) ANNUAL REPORT.—The Trade Rep- about the results of negotiations involving based on public health concerns or cannot be resentative shall, not later than the date by agricultural trade; substantiated by reliable analytical meth- which countries are identified under sub- ‘‘(vi) information about changes in United ods; section (a), transmit to the Committee on States laws that are necessary as a result of ‘‘(C) use unfair export subsidies; Ways and Means and the Committee on Agri- the negotiations; and ‘‘(D) unreasonably delay or preclude imple- culture of the House of Representatives and ‘‘(vii) a schedule and procedure for the mentation of a report of a dispute panel of the Committee on Finance and the Commit- Oversight Group to provide advice and guid- the World Trade Organization; tee on Agriculture, Nutrition, and Forestry ance to the United States Trade Representa- ‘‘(E) whose acts, policies, or practices de- of the Senate, a report on the actions taken tive regarding— scribed in subparagraphs (A)-(D) have the under this section during the 12 months pre- ‘‘(I) the negotiations involving agricul- greatest adverse impact (actual or potential) ceding such report, and the reasons for such tural trade; and on the relevant United States agricultural actions, including a description of progress ‘‘(II) changes in United States laws that commodities; or made in achieving fair and equitable market are necessary as a result of the negotiations. ‘‘(F) that are not negotiating in good faith access for United States agricultural com- ‘‘(B) The United States Trade Representa- about adopting fair and equitable trade prac- modities. tive shall meet with the Oversight Group at tices, or making significant progress in bi- (b) REMEDIAL ACTIONS TO UNFAIR TRADE a minimum on a quarterly basis, and as lateral or multilateral negotiations, in re- PRACTICES INVOLVING UNITED STATES AGRI- needed during a negotiation involving agri- gards to United States agricultural commod- CULTURAL COMMODITIES, LIVESTOCK, AND AG- cultural trade. ities. RICULTURAL PRODUCTS.— ‘‘(C) If determined necessary by either ‘‘(2) CONSULTATION AND CONSIDERATION RE- (1) Section 301 of the Trade Act of 1974 (19 party, consultations between the Oversight QUIREMENTS.—In identifying priority foreign U.S.C. 2411) is amended— Group and the United States Trade Rep- countries under subsection (a)(2), the Trade (A) in subsection (a)(1) by inserting ‘‘sec- resentative may be conducted in executive Representative shall— tion 183(a) or’’ after ‘‘determines under’’; ‘‘(A) consult with the Secretary of Agri- session. (B) in subsection (b) by inserting ‘‘section culture and other appropriate officers of the SEC. 6. SALE OR BARTER OF FOOD ASSISTANCE. 183(a) or’’ after ‘‘determines under’’; Federal Government; and It is the sense of Congress that the amend- ‘‘(B) take into account information from (C) in subsection (c)(1)— ment to section 203 of the Agricultural Trade such sources as may be available to the (i) in subparagraph (C) by striking ‘‘sec- Development and Assistance Act of 1954 Trade Representative and such information tion; or’’ and inserting ‘‘section;’’ (Pub. L. 480) made in section 208 of the Fed- as may be submitted to the Trade Represent- (ii) in subparagraph (D) by striking ‘‘para- eral Agriculture Improvement And Reform ative by interested persons, including infor- graph (4).’’ and inserting ‘‘paragraph (4); or’’; Act of 1996 (Public Law 101–127) was intended mation contained in reports submitted under and to allow the sale or barter of United States section 181(b) and petitions submitted under (iii) by adding a new subparagraph (E) that agricultural commodities included in United section 302. reads as follows: States food assistance only within the recipi- ‘‘(3) FACTUAL BASIS REQUIREMENT.—The ‘‘(E) with respect to an investigation of a ent country or countries adjacent to the re- Trade Representative may identify a foreign country identified under section 183(a)— cipient country, unless such sale or barter country under subsection (a)(1) only if the within the recipient country or adjacent ‘‘(I) take any action authorized under this Trade Representative finds that there is a subsection; and countries— factual basis for identifying the foreign (1) is not practicable; and ‘‘(II) to request that the Secretary of Agri- country as engaging in a trade practice culture target the use of existing United (2) will not disrupt commercial markets under subsection (a)(1). for the agricultural commodity involved. States export programs that are adminis- ‘‘(4) CONSIDERATION OF HISTORICAL FAC- tered within the Department of Agriculture SEC. 7. TREATMENT OF UNITED STATES AGRI- TORS.—In identifying foreign countries under to the commodity that is subject to the un- CULTURAL COMMODITIES, LIVE- paragraphs (1) and (2) of subsection (a), the fair trade practice by the priority foreign STOCK, AND AGRICULTURAL PROD- Trade Representative shall take into UCTS. country. account— (a) IDENTIFICATION REQUIRED.—Chapter 8 of (c) CLERICAL AMENDMENT.—The table of ‘‘(A) the history of agricultural trade rela- contents for the Trade Act of 1974 is amended title I of the Trade Act of 1974 is amended by tions with the foreign country, including any adding at the end the following: by inserting after the item relating to sec- previous identification under subsection tion 182 the following: ‘‘SEC. 183. IDENTIFICATION OF COUNTRIES THAT (a)(2); and ENGAGE IN UNFAIR TRADE PRAC- ‘‘(B) the history of efforts of the United ‘‘Sec. 183. Identification of Countries That TICES AFFECTING UNITED STATES States, and the response of the foreign coun- Engage in Unfair Trade Prac- AGRICULTURAL COMMODITIES. try, to achieve fair trade practices affecting tices Affecting United States ‘‘(a) IN GENERAL.—Not later than the date trade in United States agricultural commod- Agricultural Commodities.’’ that is 30 days after the date on which the ities. (d) INVESTIGATION REQUIRED.—Subpara- annual report is required to be submitted to ‘‘(c) REVOCATIONS AND ADDITIONAL IDENTI- graph (A) of section 302(b)(2) of the Trade Act Congressional committees under section FICATIONS.— of 1974 (19 U.S.C. 2412(b)(2)(A)) is amended by 181(b), the United States Trade Representa- ‘‘(1) AUTHORITY TO ACT AT ANY TIME.—If in- inserting ‘‘or 183(a)(2)’’ after ‘‘section tive (hereafter in this section referred to as formation available to the Trade Represent- 182(a)(2)’’ in the matter preceding clause (i). the ‘Trade Representative’) shall identify— ative indicates that such action is appro- (e) CONFORMING AMENDMENTS.— ‘‘(1) those foreign countries that— priate, the Trade Representative may at any (1) Subparagraph (D) of section 302(b)(2) of ‘‘(A) deny fair and equitable market access time— such Act is amended by inserting ‘‘concern- to United States agricultural commodities ‘‘(A) revoke the identification of any for- ing intellectual property rights that is’’ through discriminatory nontariff trade bar- eign country as a priority foreign country after ‘‘any investigation’’. riers; under this section; or (2) Subparagraph (B) of section 304(a)(3) of ‘‘(B) employ unfair export subsidies that ‘‘(B) identify any foreign country as a pri- such Act is amended— adversely affect market share of United ority foreign country under this section. (A) by striking ‘‘or’’ at the end of clause States exports of agricultural commodities; ‘‘(2) REVOCATION REPORTS.—The Trade Rep- (ii); or resentative shall include in the semiannual (B) by inserting ‘‘or’’ at the end of clause ‘‘(C) unreasonably delay or preclude imple- report submitted to the Congress under sec- (iii); and mentation of a report of a dispute panel of tion 309(3) a detailed explanation of the rea- (C) by inserting immediately after clause the World Trade Organization; or sons for the revocation under paragraph (1) (iii) the following new clause: ‘‘(2) those foreign countries identified of the identification of any foreign country ‘‘(iv) the foreign country involved in the under paragraph (1) that are determined by as a priority foreign country under this sec- investigation is making substantial progress the Trade Representative to be priority for- tion. in drafting or implementing legislative or eign countries. ‘‘(d) DEFINITIONS.—For purposes of this sec- administrative measures that ensure the ‘‘(b) SPECIAL RULES FOR IDENTIFICATION.— tion, the terms ‘‘agricultural commodity’’ country engages in fair and equitable trade ‘‘(1) CRITERIA.—In identifying priority for- and ‘‘United States agricultural commodity’’ practices affecting United States agricul- eign countries under subsection (a)(2), the have the meanings provided in section 102 (1) tural commodities.’’. Trade Representative shall only identify and (7) of the Agricultural Trade Act of 1978, those foreign countries that— respectively. SEC.8. REALLOCATION OF UNOBLIGATED FUNDS. ‘‘(A) engage in or have the most onerous or ‘‘(e) PUBLICATION.—The Trade Representa- (a) IN GENERAL.—The Secretary of Agri- egregious acts, policies, or practices that tive shall publish in the Federal Register a culture shall, on or about April 1 and July 1 S538 CONGRESSIONAL RECORD — SENATE January 19, 1999 of each fiscal year determine whether unob- trade practices in this context are discrimi- I ask unanimous consent that the bill ligated funds exist out of funds made avail- natory nontariff trade barriers, unfair export and section by section analysis be able for the fiscal year for the Export En- subsidies, and refusal by a country to imple- printed in the CONGRESSIONAL RECORD. hancement Program. ment a decision of a WTO dispute panel. This There being no objection, the bill was (b) Transfer to Food Assistance. procedure parallels an investigative proce- The Secretary may, on or about April 1 and dure that exists in current U.S. trade law for ordered to be printed in the RECORD, as July 1 of each fiscal year, with respect to all U.S. products. If the Trade Representa- follows: any unobligated funds identified under sub- tive makes such a determination, the Trade S. 102 section (a), apply the funds to— Representative is authorized to adopt rem- Be it enacted by the Senate and House of Rep- (1) one or more of the programs adminis- edies already provided in United States trade resentatives of the United States of America in tered through Public Law 480 (7 U.S.C. 1701 law, and the Secretary of Agriculture has Congress assembled, et. seq.); the discretion to target the use of existing (2) the purchase of agricultural commod- export programs within USDA to the com- SECTION 1. DISCLOSURE OF ESTIMATES OF FED- ERAL RETIREMENT BENEFITS OF ities for donation through one of the pro- modity that is subject to the unfair trade MEMBERS OF CONGRESS. grams administered through section 416 of practice. (a) IN GENERAL.—Section 105(a) of the Leg- the Agricultural Act of 1949 (7 U.S.C. 1431); 6. Commodity Program Reallocation—The islative Branch Appropriations Act, 1965 (2 and Secretary of Agriculture, for each fiscal U.S.C. 104a; Public Law 88–454; 78 Stat. 550) is (3) programs administered through Title II year, is given the discretion to reallocate un- amended by adding at the end the following of the Trade Act of 1978 (7 U.S.C. 5621–5641). obligated funds of the Export Enhancement new paragraph: (c) Use Within Same Fiscal Year. All funds Program to one of the Public Law 480 food ‘‘(4) The Secretary of the Senate and the identified under subsection (a) shall be obli- assistance programs, the Food for Progress Clerk of the House of Representatives shall gated within the same fiscal year. Such program, or one of the section 416 commod- include in each semiannual report submitted funds may not be transferred under sub- ity donation programs. All affected funds under paragraph (1), with respect to Mem- section (b) in a fiscal year subsequent to the must be obligated within the same fiscal bers of Congress, as applicable— fiscal year of the determination in sub- year. ‘‘(A) the total amount of individual con- section (a). By Mr. ABRAHAM: tributions made by each Member to the Civil Service Retirement and Disability Fund and SUMMARY OF THE UNITED STATES S. 102. A bill to provide that the Sec- the Thrift Savings Fund under chapters 83 AGRICULTURAL TRADE ACT OF 1999 retary of the Senate and the Clerk of and 84 of title 5, United States Code, for all 1. Goals for Trade Negotiations—United the House of Representatives shall in- Federal service performed by the Member as States objectives for future multilateral and clude an estimate of Federal retire- a Member of Congress and as a Federal em- bilateral trade negotiations affecting agri- ment benefits for each Member of Con- ployee; culture, including the World Trade Organiza- gress in their semiannual reports, and ‘‘(B) an estimate of the annuity each Mem- tion (WTO), are to—increase market access for other purposes; to the Committee ber would be entitled to receive under chap- for United States agricultural commodities, on Governmental Affairs. ters 83 and 84 of such title based on the earli- livestock, and value-added products, particu- est possible date to receive annuity pay- THE CONGRESSIONAL PENSION DISCLOSURE ACT larly for new products derived from bio- ments by reason of retirement (other than OF 1999 technology; eliminate nontariff import bar- disability retirement) which begins after the riers such as quotas, discriminatory tariff- Mr. ABRAHAM. Mr. President, I rise date of expiration of the term of office such rate quotas, and unjustified sanitary and today to introduce the Congressional Member is serving; and phytosanitary restrictions; eliminate export Pension Disclosure Act of 1999 which ‘‘(C) any other information necessary to subsidies; eliminate trade-distorting prac- would require the Secretary of the Sen- enable the public to accurately compute the tices of state trading enterprises; enforce ate and the Clerk of the House of Rep- Federal retirement benefits of each Member current WTO rules and develop new rules resentatives to disclose information re- based on various assumptions of years of that allow increased market access; and service and age of separation from service by strengthen rules for implementing WTO dis- lating to the pensions of Members of Congress. This legislation would re- reason of retirement.’’. pute panel decisions. (b) EFFECTIVE DATE.—This section shall 2. Sanctions Reform—International trade quire these officers to include in their take effect 1 year after the date of the enact- in United States agricultural commodities, semiannual reports to Congress de- ment of this Act. livestock, value-added products, and food as- tailed information relating to the sistance, are exempted from unilateral eco- Members pensions. The semiannual re- SECTION-BY-SECTION ANALYSIS OF THE CON- nomic sanctions imposed by the United ports would then be available to the GRESSIONAL PENSION DISCLOSURE ACT OF States, if the transaction entails commercial public for inspection. 1999 sales or humanitarian assistance involving The reports would include the indi- agricultural products. A BILL TO PUBLICLY DISCLOSE FEDERAL RETIRE- If the President determines that this ex- vidual pension contributions of Mem- MENT BENEFITS OF MEMBERS OF CONGRESS emption should not apply to a current or fu- bers; an estimate of annuities which Section 1 (a). Amending legislation. ture sanction because of foreign policy or na- they would receive based on the earli- This section provides that Section 105(a) of tional security considerations, the President est possible date they would be eligible the Legislative Branch Appropriations Act of can override the exemption. The President to receive annuity payments by reason 1965 is amended to add the following new and the Secretary of Agriculture must pro- of retirement; and any other informa- paragraph: vide a report to Congress for each sanction tion necessary to enable the public to ‘‘The Secretary of the Senate and the for which the President determines the ex- accurately compute the Federal retire- Clerk of the House of Representatives shall emption should not apply. include in each semiannual report submitted 3. Congressional Agricultural Oversight ment benefits of each Member based on various assumptions of years of service under paragraph (1), with respect to Mem- Group—A Congressional Oversight Group, bers of Congress, as applicable:’’ made up of House and Senate Agriculture and age of separation from service by Committee members, is established as a con- reason of retirement. Section 1 (A). Contributions to retirement funds. sulting and advisory group with the United The purpose of this legislation is to The semiannual report would state the States Trade Representative for future WTO afford citizens their rightful oppor- total amount of contributions many by each and other multilateral and bilateral trade tunity to learn how public funds are Member to the Federal retirement plans (FERS or CSRS) while they performed Fed- negotiations. being utilized. The taxpayers are not 4. Food Assistance Resolution—A Sense of eral service as a Member of Congress and/or Congress resolution regarding the monetiza- only entitled to know the various a Federal employee. tion of agricultural commodities in United forms of compensation their elected of- Section 1 (B). Estimate of annuity. States food assistance is included. The 1996 ficials are being paid, they are also en- titled to make decisions about the rea- The semiannual report would include an Farm Bill allowed such monetization. The estimate of the annuity each member would resolution states that monetization should sonableness of such compensation. be entitled to receive—based upon the earli- occur only in the recipient country or in ad- My bill would make this information est possible date of retirement (other than jacent countries, unless this is not prac- conveniently available to the public. I disability retirement). This would be cal- ticable. believe that this bill would eliminate culated based upon the expiration of the 5. Super 301 for Agriculture—A procedure the present shroud of secrecy which term of office the Member is serving. is established within the Office of the United States Trade Representative to identify has surrounded the congressional pen- Section 1 (C). Additional information. countries that engage in unfair trade prac- sion system and give the public better Included in the semiannual report would be tices against U.S. agricultural commodities, access to information regarding their any additional information that would help livestock, and value-added products. Unfair representatives in Congress. the public accurately compute the Federal January 19, 1999 CONGRESSIONAL RECORD — SENATE S539 retirement benefits of members based on Independent Business, payroll taxes are Employers know FUTA as the 0.8% payroll years of service and age of separation from the fastest growing federal tax burden tax they must pay to Washington on the first service by reason of retirement. on small business. It is also important $7,000 of every employee’s wages. But this ri- Section 1(b). Effective date. to note that the payroll taxes must be diculous-sounding levy—the letters stand for Federal Unemployment Tax Act—is more The bill would take effect 1 year after the paid whether the business experiences date of enactment. than just another troubling mandate. It is an a profit or a loss. object lesson in how a federal employment As a former small businessman my- By Mr. ALLARD (for himself and program can run amok. self, I am particularly aware of this Mr. ENZI): When lawmakers originally imposed the S. 103. A bill to amend the Internal fact. I suspect that my view is similar tax to build a network of unemployment Revenue Code of 1986 to eliminate the to the view of many small business services in 1939, they were responding to an owners. It is one thing to have a surtax extraordinary problem: joblessness ranged temporary increase in unemployment close to 18%. Yet long after the Depression tax; to the Committee on Finance. when unemployment is high and the surtax is necessary. However, it is to- faded, FUTA remained on the books. LEGISLATION TO REPEAL THE TEMPORARY tally unjustified when unemployment Like most other New Deal acronyms, UNEMPLOYMENT SURTAX FUTA achieved tax immortality, surviving Mr. ALLARD. Mr. President, today I is at the lowest level in three decades. Repeal of the 0.2 percent surtax will decades of prosperity. The mid-1970’s’ spike introduce legislation to repeal the in unemployment created an excuse to ‘‘tem- reduce the tax burden on employers ‘‘temporary’’ 0.2 percent Federal Un- porarily’’ increase FUTA rates. Needless to and workers by $6 billion over the next employment Tax (FUTA) surtax. say, that increase was never reversed. In- The ‘‘temporary’’ surtax was enacted five years. deed, the third largest tax hike in the Tax- Lower payroll taxes mean higher in 1976 by Congress to repay the gen- payer Relief Act of 1997 was an extension of wages for workers. Although the em- a FUTA surtax to 2007. Today, joblessness is eral fund of the Treasury for funds bor- ployer appears to fully pay for the un- at a historic low. Yet FUTA tax rates are rowed by the unemployment trust employment surtax and other payroll higher than they were in 1975, when unem- fund. Although the borrowings were re- taxes, the economic evidence is strong ployment was 8.5%. paid in 1987, Congress has continued to that the cost is actually passed to Then there’s the question of what FUTA extend the surtax in tax bill after tax workers in the form of lower wages. revenues actually pay for. FUTA isn’t sup- bill. posed to do anything as useful as pay unem- Consistent tax relief will help to en- Since 1987, Congress has used exten- ployment benefits to workers who have been sure that our economy remains the sion of the surtax to help raise revenue laid off. Employers are the ones who have to strongest and most vibrant in the to pay for tax packages. In fact, the do that. No, FUTA money is earmarked to- world. Low taxes reduce unemploy- surtax was most recently extended to ward salaries for bureaucrats in state unem- ment and help ensure that future ployment offices. This is a dubious project in help pay for the 1997 tax bill. The tax surtaxes are unnecessary. any era, and an absurd one in a time of work- takes money out of the private econ- Mr. President, I ask unanimous con- er shortage like this one. omy for no valid reason. sent that the text of the bill be printed And here’s the kicker: Much of the FUTA By repealing the surtax, Congress in the RECORD, an editorial from the money doesn’t even make it to these super- will honor a promise that it made when Wall Street Journal, and several charts fluous employment offices. Mark Wilson of the surtax was first enacted. Small that demonstrate the surpluses in each the Heritage Foundation found that little businesses were told repeatedly that more than half of the $6.1 billion in FUTA state fund be printed in the RECORD. the tax was temporary and would be re- revenues collected in 1997 ended up being There being no objection, the items pealed when it was no longer needed to spent on FUTA’s official mandate. The rest were ordered to be printed in the finance the unemployment tax system. of the money went straight to the federal RECORD, as follows: government’s ‘‘general revenues,’’ traded Clearly a tax is not temporary when it S. 103 against Treasury IOUs. In other words, right has already been in place for over into the government’s maw. twenty years. I would suggest at a min- Be it enacted by the Senate and House of Rep- resentatives of the United States of America in Washington robs FUTA in the same way it imum that if we are going to keep ex- Congress assembled, steals money from Social Security’s trust tending this tax, that we be honest SECTION. 1 REPEAL OF TEMPORARY UNEMPLOY- fund till. As the years pass, of course, the with the American worker and small MENT TAX. burgeoning economy is making FUTA an business owner and stop calling this Section 3301 of the Internal Revenue Code even better cash machine. Today the FUTA tax ‘‘temporary.’’ of 1986 (relating to rate of unemployment trust fund contains $23.1 billion, about dou- Based on the original purpose, the tax) is amended— ble what it held just three years ago. No surtax is no longer needed. The econ- (1) by striking ‘‘2007’’ in paragraph (1) and wonder lawmakers get all sanctimonious about FDR when the topic of limiting FUTA omy is experiencing the highest level inserting ‘‘1999’’; and (2) by striking ‘‘2008’’ in paragraph (2) and comes up. of employment in decades, and all state inserting ‘‘2000’’. This is a shame, since FUTA does indeed unemployment funds have surpluses. It kill more jobs than it finds. The FUTA tax, is inappropriate for the government to [From the Wall Street Journal, Dec. 28, 1998] like Social Security, the minimum wage, or continue to raise excess unemployment FUTILE other mandates, hits businesses on the mar- taxes and then use the surplus for pur- The nation’s secondary schools are gearing gin, where additional work is created. In poses completely unrelated to unem- up to spend several hundred million in fed- times of downsizing, as we saw in the early ployment. eral grants on ‘‘school to work’’ programs 1990s, these bugaboos drive layoffs. Repeal of the temporary unemploy- that purport to reduce youth unemployment. The National Federation of Independent ment surtax will also be beneficial to Indeed, under the 1993 School to Work Act, Business, a small business lobby, lists FUTA small businesses. The surtax is espe- federal and state bureaucrats are running as one of the big employment burdens. FUTA cially hard on the small businesses be- around the country like so many job fairies also punishes workers who do have jobs, ‘‘creating’’ employment with a wave of the since employers pass along the costs to them cause they are often labor intensive. bureaucratic wand. If job growth is really in the form of lower wages. Sen. Wayne Al- Any payroll tax is added directly to the what the government is after though, we lard (R., Colo.) has put forward legislation to employer’s payroll costs. In fact, ac- know a simpler way to achieve it: kill off pare FUTA. It is a reform long past due. cording to the National Federation of FUTA. STATE UNEMPLOYMENT COMPENSATION SYSTEM RESERVES AND RATIO OF RESERVES TO TOTAL WAGES BY STATE AND YEAR, 1991–1995

Net reserves as of Dec. 31 of each year (thousands) Ratio of year-end reserves to total wages State (percent) 1995 1994 1993 1992 1991 1995 1994 1993 1992 1991

Alabama ...... $534,470 $551,842 $570,118 $550,280 $585,725 1.61 1.77 1.94 1.96 2.24 Alaska ...... 201,017 210,563 232,911 232,320 243,155 3.56 3.81 4.32 4.57 4.98 Arizona ...... 534,640 432,449 368,782 372,423 437,667 1.48 1.33 1.26 1.36 1.71 Arkansas ...... 200,866 169,795 134,432 81,340 103,629 1.12 1.02 0.87 0.55 0.76 California ...... 2,104,220 2,092,695 2,450,402 2,786,713 4,190,197 0.68 0.72 0.87 0.99 1.52 Colorado ...... 480,582 434,482 390,435 339,246 312,036 1.22 1.21 1.15 1.10 1.09 Connecticut ...... 116,692 3,311 1,062 (653,215) (353,767) 0.27 0.01 0.00 0.00 0.00 Delaware ...... 271,807 244,013 225,943 218,719 223,685 3.24 3.14 3.05 3.04 3.20 S540 CONGRESSIONAL RECORD — SENATE January 19, 1999 STATE UNEMPLOYMENT COMPENSATION SYSTEM RESERVES AND RATIO OF RESERVES TO TOTAL WAGES BY STATE AND YEAR, 1991–1995—Continued

Net reserves as of Dec. 31 of each year (thousands) Ratio of year-end reserves to total wages State (percent) 1995 1994 1993 1992 1991 1995 1994 1993 1992 1991

District of Columbia ...... 68,636 41,141 5,937 (19,286) 12,465 0.57 0.35 0.05 0.00 0.12 Florida ...... 1,806,432 1,621,614 1,505,570 1,443,603 1,691,814 1.53 1.47 1.45 1.47 1.84 Georgia ...... 1,453,118 1,281,507 1,094,999 965,870 962,324 2.03 1.95 1.79 1.68 1.81 Hawaii ...... 213,496 232,859 310,155 362,123 420,991 2.07 2.26 3.01 3.57 4.39 Idaho ...... 243,090 245,096 247,823 240,141 243,573 2.88 3.14 3.49 3.67 4.09 Illinois ...... 1,629,210 1,247,066 851,918 847,622 1,172,283 1.22 0.99 0.71 0.74 1.08 Indiana ...... 1,228,070 1,132,343 1,024,658 941,632 899,139 2.16 2.11 2.05 1.99 2.02 Iowa ...... 725,149 708,450 655,066 615,474 594,626 3.10 3.23 3.20 3.16 3.27 Kansas ...... 704,008 735,717 658,053 605,827 571,904 2.77 3.20 3.03 2.89 2.91 Kentucky ...... 470,826 425,682 402,311 364,287 357,940 1.61 1.55 1.57 1.49 1.58 Louisiana ...... 1,003,378 868,819 689,382 600,917 559,975 3.15 2.92 2.47 2.22 2.15 Maine ...... 95,289 74,621 51,403 35,108 77,553 1.06 0.87 0.62 0.44 1.01 Maryland ...... 605,415 408,994 219,071 145,839 224,970 1.36 0.96 0.54 0.37 0.59 Massachusetts ...... 527,273 184,933 (115,987) (379,918) (234,742) 0.70 0.26 0.00 0.00 0.00 Michigan ...... 1,497,688 866,906 364,530 (72,492) (166,509) 1.45 0.90 0.42 0.00 0.00 Minnesota ...... 459,621 369,776 257,584 224,091 309,473 0.94 0.80 0.59 0.54 0.80 Mississippi ...... 551,318 490,392 410,259 345,352 348,593 3.19 2.98 2.74 2.48 2.69 Missouri ...... 196,933 118,466 (7,749) 3,101 199,473 0.40 0.26 0.00 0.001 0.30 Montana ...... 122,242 110,910 104,415 96,370 91,119 2.08 1.95 1.91 1.87 1.91 Nebraska ...... 194,283 188,365 171,938 160,713 146,184 1.45 1.51 1.49 1.46 1.42 Nevada ...... 297,866 289,804 238,398 233,667 295,919 1.69 1.70 1.68 1.79 2.46 New Hampshire ...... 250,884 211,580 164,455 129,582 127,995 2.25 2.06 1.71 1.38 1.46 New Jersey ...... 1,987,790 1,947,033 1,965,236 2,439,970 2,564,278 2.06 2.12 2.23 2.86 3.16 New Mexico ...... 354,874 317,264 271,194 238,999 220,932 3.25 3.13 2.91 2.77 2.73 New York ...... 248,978 190,467 129,409 213,914 1,191,450 0.12 0.10 0.07 0.12 0.69 North Carolina ...... 1,531,117 1,555,329 1,514,674 1,387,170 1,373,719 2.27 2.49 2.60 2.52 2.70 North Dakota ...... 57,415 58,641 56,267 50,306 50,914 1.41 1.55 1.59 1.51 1.64 Ohio ...... 1,600,533 1,166,837 845,054 602,464 647,410 1.46 1.13 0.88 0.65 0.74 Oklahoma ...... 521,683 474,866 437,800 418,907 426,398 2.32 2.21 2.13 2.10 2.24 Oregon ...... 905,985 994,533 1,096,695 1,054,524 1,043,810 3.21 3.86 4.63 4.71 4.98 Pennsylvania ...... 1,914,777 1,518,999 1,105,425 807,828 1,155,988 1.78 1.48 1.12 0.84 1.26 Puerto Rico ...... 634,291 674,663 730,873 749,255 750,020 6.71 7.54 8.39 9.05 9.64 Rhode Island ...... 110,086 119,262 119,294 104,498 143,617 1.33 1.51 1.56 1.41 2.03 South Carolina ...... 556,650 502,237 467,494 433,442 455,097 1.84 1.79 1.77 1.73 1.92 South Dakota ...... 51,622 51,208 49,773 50,416 49,701 1.09 1.16 1.23 1.34 1.45 Tennessee ...... 822,821 747,477 672,261 603,130 612,653 1.66 1.62 1.58 1.50 1.67 Texas ...... 584,866 480,322 445,633 586,472 942,734 0.34 0.30 0.30 0.41 0.69 Utah ...... 468,030 411,411 366,524 342,146 327,893 2.93 2.86 2.82 2.83 2.96 Vermont ...... 206,720 195,418 183,025 180,730 192,675 4.51 4.51 4.37 4.49 5.05 Virginia ...... 788,787 658,588 553,441 506,641 591,166 1.27 1.13 1.01 0.97 1.19 Virgin Islands ...... 40,064 40,843 51,575 47,416 43,241 6.86 6.67 6.60 7.32 7.31 Washington ...... 1,417,701 1,565,417 1,743,146 1,766,006 1,707,604 2.93 3.45 4.05 4.18 4.40 West Virginia ...... 164,036 161,671 154,512 140,517 157,124 1.44 1.47 1.49 1.38 1.62 Wisconsin ...... 1,503,641 1,400,119 1,241,918 1,194,553 1,171,822 3.06 3.03 2.87 2.90 3.07 Wyoming ...... 142,310 136,755 127,332 109,826 98,952 4.22 4.15 4.08 3.71 3.48 Total ...... 35,403,296 31,343,551 28,187,816 27,111,772 31,494,605 1.40 1.32 1.25 1.25 1.49 Difference between detail and totals due to rounding 1995 data subject to revision. Ratio of reserves to wages not calculated for States with negative balances. Source: U.S. Department of Labor. Prepared by the National Foundation for U.C. & W.C., June 1997.

FINANCIAL INFORMATION BY STATE FOR CY96.4, 1996

Revenue (12 TF Balance Total loans State mos) (in (in thou- Mos. in TF (in thou- Loans/cov. thousands) sands) sands) employee

Alabama ...... 134,029 483,472 27.3 0 0.00 Alaska ...... 109,089 194,188 19.8 0 0.00 Arizona ...... 223,143 627,059 46.3 0 0.00 Arkansas ...... 169,670 202,784 13.0 0 0.00 California ...... 3,590,823 2,877,452 11.7 0 0.00 Colorado ...... 187,897 510,956 32.5 0 0.00 Connecticut ...... 592,538 277,861 7.4 0 0.00 Delaware ...... 68,409 258,468 31.9 0 0.00 Dist. of Colum ...... 133,380 99,368 12.2 0 0.00 Florida ...... 677,796 1,947,557 35.2 0 0.00 Georgia ...... 382,294 1,634,073 67.0 0 0.00 Hawaii ...... 179,540 211,267 13.3 0 0.00 Idaho ...... 105,900 266,228 32.1 0 0.00 Illinois ...... 1,199,050 1,638,560 15.2 0 0.00 Indiana ...... 238,343 1,273,086 58.0 0 0.00 Iowa ...... 133,905 718,845 45.9 0 0.00 Kansas ...... 42,487 651,074 52.6 0 0.00 Kentucky ...... 234,997 501,304 25.7 0 0.00 Louisiana ...... 204,469 1,131,052 94.7 0 0.00 Maine ...... 122,601 112,122 12.5 0 0.00 Maryland ...... 421,722 690,786 22.9 0 0.00 Massachusetts ...... 1,130,136 914,631 14.0 0 0.00 Michigan ...... 1,233,803 1,830,928 21.8 0 0.00 Minnesota ...... 386,523 513,033 16.4 0 0.00 Mississippi ...... 99,520 553,222 50.0 0 0.00 Missouri ...... 381,576 307,507 12.8 0 0.00 Montana ...... 58,841 125,900 24.9 0 0.00 Nebraska ...... 41,748 195,210 44.8 0 0.00 Nevada ...... 177,064 348,278 28.6 0 0.00 New Hampshire ...... 41,781 268,011 91.7 0 0.00 New Jersey ...... 1,448,896 2,028,818 13.1 0 0.00 New Mexico ...... 85,729 385,531 59.6 0 0.00 New York ...... 2,211,440 470,400 2.8 0 0.00 North Carolina ...... 113,075 1,355,565 39.6 0 0.00 North Dakota ...... 24,364 50,072 19.1 0 0.00 Ohio ...... 781,640 1,750,968 28.8 0 0.00 Oklahoma ...... 128,728 563,895 64.3 0 0.00 Oregon ...... 384,046 941,419 28.9 0 0.00 Pennsylvania ...... 1,612,406 2,031,947 14.9 0 0.00 Puerto Rico ...... 149,262 595,703 31.8 0 0.00 Rhode Island ...... 184,004 116,240 7.4 0 0.00 South Carolina ...... 208,829 603,410 36.2 0 0.00 South Dakota ...... 12,291 49,542 39.9 0 0.00 Tennessee ...... 284,220 826,526 30.8 0 0.00 Texas ...... 1,014,460 642,233 7.7 0 0.00 Utah ...... 96,262 523,880 89.2 0 0.00 Vermont ...... 48,595 218,259 49.5 0 0.00 Virginia ...... 260,890 897,198 55.4 0 0.00 Virgin Islands ...... 9,345 42,069 51.5 0 0.00 Washington ...... 644,606 1,332,508 19.7 0 0.00 West Virginia ...... 130,182 157,345 12.8 0 0.00 January 19, 1999 CONGRESSIONAL RECORD — SENATE S541 FINANCIAL INFORMATION BY STATE FOR CY96.4, 1996—Continued

Revenue (12 TF Balance Total loans State mos) (in (in thou- Mos. in TF (in thou- Loans/cov. thousands) sands) sands) employee

Wisconsin ...... 445,248 1,556,922 37.2 0 0.00 Wyoming ...... 28,401 147,087 54.0 0 0.00

FINANCIAL INFORMATION BY STATE FOR CYQ, 1997 Maine; to the Committee on Environ- when mine sweepers and other ships ment and Public Works. were being built there for World War I. Revenues, TF balance TF as per- LEGISLATION TO DEAUTHORIZE CERTAIN POR- Because part of the federal navigation State last 12 (in thou- cent of total months (in TIONS OF THE PROJECT FOR NAVIGATION IN sands) wages 1 project is still considered active, the thousands) THE STATE OF MAINE Corps told the town that nothing could Alabama ...... $140,978 $451,425 1.21 Ms. SNOWE. Mr. President, I rise be done in the water until the entire Alaska ...... 131,645 202,416 3.46 today to thank my colleagues for their Arizona ...... 224,651 741,050 1.70 area was deauthorized. My bill takes Arkansas ...... 183,101 204,319 1.03 support in the last Congress for my leg- care of this final deauthorization, the California ...... 3,367,845 3,737,815 1.05 islation on behalf of the towns of Colorado ...... 198,748 574,413 1.22 rest of which was accomplished in the Connecticut ...... 637,125 532,692 1.06 Tremont and East Boothbay, Maine, last reauthorization of the Water Re- Delaware ...... 75,692 279,173 2.86 District of Col ...... 132,481 135,627 0.94 which passed the Senate in the 105th sources Development Act, but the co- Florida ...... 685,668 2,090,222 1.55 Congress. S. 1531 sought to deauthorize ordinates were ultimately found to be Georgia ...... 350,964 1,797,102 2.13 Hawaii ...... 186,510 216,658 2.04 certain portions of the navigational inaccurate. This legislation, with the Idaho ...... 99,412 280,382 3.00 project for Bass Harbor, and S. 1532 assistance of the Corps, addresses that Illinois ...... 1,226,328 1,742,968 1.16 Indiana ...... 268,016 1,362,463 2.15 sought to deauthorize the final por- small section still requiring deauthor- Iowa ...... 144,156 727,327 2.79 tions of East Boothbay Harbor. ization. Kansas ...... 46,633 606,735 2.16 Kentucky ...... 269,075 571,366 1.71 I also want to thank my colleagues The Town of Boothbay Harbor, Maine Louisiana ...... 213,963 1,275,668 3.55 for their support and Senate passage of has requested legislation be enacted Maine ...... 118,089 136,019 1.35 Maryland ...... 349,967 720,552 1.42 the reauthorization of the Water Re- that will deauthorize the Federal Navi- Massachusetts ...... 1,222,144 1,446,164 1.64 sources Development Act of 1998, or gation Project area within the limits of Michigan ...... 1,184,719 2,222,714 1.93 Minnesota ...... 398,707 564,628 0.98 WRDA, which not only included these Boothbay Harbor’s inner harbor. To Mississippi ...... 166,992 563,901 2.95 two stand alone bills, but also con- this end, I am introducing a bill, draft- Missouri ...... 381,802 417,706 0.75 Montana ...... 65,306 135,604 2.11 tained legislation that deauthorized ed with the assistance of the U.S. Nebraska ...... 57,932 205,727 1.33 the Federal Navigation Project area Army Corps of Engineers, and approved Nevada ...... 224,837 387,888 1.79 New Hampshire ...... 26,426 278,296 2.16 within the limits of Boothbay Harbor’s unanimously by the town’s representa- New Jersey ...... 1,459,837 2,384,916 2.21 inner harbor. The town’s representa- tives. New Mexico ...... 99,244 431,159 3.61 New York ...... 2,402,806 990,176 0.43 tives had voted unanimously to request I am also introducing legislation to North Carolina ...... 253,942 1,301,184 1.67 this deauthorization of the FNP area. address the dredging of Wells Harbor, North Dakota ...... 26,246 38,057 0.83 Ohio ...... 719,622 1,874,943 1.53 Also, WRDA was amended on the which will deepen and maintain the Oklahoma ...... 107,585 608,942 2.36 floor to add language that would allow harbor and, at the same time, protect Oregon ...... 462,961 1,068,843 3.13 Pennsylvania ...... 1,587,542 2,253,703 1.87 for the dredging of Wells Harbor. After an important federal wildlife refuge. Puerto Rico ...... 203,816 586,659 5.30 many contentious years, this impor- The language, which was also included Rhode Island ...... 248,423 160,044 1.78 South Carolina ...... 219,733 687,060 2.02 tant federal project is set to go forward in the Senate passed WRDA of 1998, South Dakota ...... 14,186 48,939 0.91 because a historic Memorandum of gives the Army Corps of Engineers Tennessee ...... 296,749 847,842 1.52 Texas ...... 1,014,596 706,577 0.35 Agreement was reached amongst the (Corps) the authority to proceed with Utah ...... 97,876 572,849 2.97 town of Wells, the Save our Shores the project. The dredging of this fed- Vermont ...... 50,047 233,537 4.59 Virgin Islands ...... 7,693 45,434 6.82 Wells coalition, the Wells Chamber of eral project, contentious since 1988 be- Virginia ...... 222,448 979,376 1.35 Commerce and the Maine Audubon So- cause of concerns from environmental Washington ...... 810,440 1,447,195 2.42 West Virginia ...... 139,030 165,917 1.37 ciety. groups, is now set to go forward be- Wisconsin ...... 475,595 1,632,214 2.95 Bass Harbor has the greatest con- cause of a historic Memorandum of Wyoming ...... 31,217 158,573 4.26 centration of fishing boats on Mt. Agreement that has been reached United States ...... 23,731,544 43,833,157 1.51 Desert Island and all mooring spaces amongst the community and town offi- 1 Based on estimated wages for the most recent 12 months. are currently full, with a long waiting cials, and the Maine Audubon Society. list to obtain future moorings. When Interestingly, approximately 185,000 By Ms. SNOWE (for herself and the townspeople approached the U.S. cubic yards of the sand to be dredged Ms. COLLINS): Army Corps of Engineers to obtain a will be used to nourish adjacent erod- S. 105. A bill to deauthorize certain permit for expansion, they were told ing beaches in the town of Wells, so the portions of the project for navigation, that no improvements could be made project is a win-win situation for all Bass Harbor, Maine, to the Committee until the federal project area boundary concerned. on Environment and Public Works. was moved to the proper location by My stand alone bill, which will also legislative action. I am happy to do once again be incorporated into WRDA, By Ms. SNOWE (for herself and this on their behalf. The Selectmen, will allow the Corps to conduct mainte- Ms. COLLINS): Town Manager, and Harbor Committee nance dredging in Wells Harbor based S. 106. A bill to amend the Water Re- will not be working with the Corps and on a design capacity for the harbor of sources Development Act of 1996 to de- the State in anticipation of having the 150 vessels, of which approximately 10 authorize the remainder of the project harbor dredged, which last occurred in percent are commercial fishing boats. at East Boothbay Harbor, Maine; to 1966, so that they may make space A small craft fleet of 150 is the original the Committee on Environment and available for more and larger boats. congressionally authorized design ca- Public Works. The bill for East Boothbay Harbor pacity for the harbor, and was a crucial By Ms. SNOWE (for herself and deauthorize the remainder of the fed- part of the Agreement. eral navigational project at Boothbay In addition, all parties to the settle- Ms. COLLINS): S. 107. A bill to deauthorize the Harbor. The current marina owners ment have agreed to a modification of project for navigation, Boothbay Har- purchased the former shipbuilding yard the federal project, requiring Congres- bor, Maine; to the Committee on Envi- in East Boothbay in 1993 and have since sional action, that would realign and ronment and Public Works. turned it into a full service marina. In redesignate the existing federal chan- the process of getting all the permits nel, anchorage, and realign with the By Ms. SNOWE (for herself and together for further economic develop- harbor settling basin, so as to maxi- Ms. COLLINS): ment, the marina discovered that parts mize the use of the natural channels in S. 108. A bill to modify, and to de- of the harbor, while no longer used as the harbor for navigation and anchor- authorize certain portions of, the such, were still deemed a federal navi- age purposes. This will eliminate the project for navigation at Wells Harbor, gation project created back in 1913, impact of dredging on the intertidal S542 CONGRESSIONAL RECORD — SENATE January 19, 1999 sand bar, which is considered to be the Chattahoochee River National Recre- partisan support in the Senate with 35 geologically stabilizing force for the ation Area to protect and preserve the cosponsors, and 113 cosponsors in the estuary. The language, drafted with endangered Chattahoochee River and House of Representatives, demonstrat- Corps assistance, will create a new set- provide additional recreation opportu- ing our commitment to improving the tling basin in the outer harbor, relo- nities for the citizens of Georgia and health and lives of low-income women cate the inner harbor channel to the our nation. This legislation authorizes in the United States. east side of the harbor, and redesignate the creation of a greenway buffer be- Mr. President, whether we stand here portions of the current channel and tween the river and private develop- as fathers, husbands, brothers or sons, settling basin as anchorage. ment to prevent further pollution, pro- mothers, daughters, sisters or grand- The State of Maine issued water vide flood and erosion control, and children, we all know someone, a fam- quality certification and coastal zone maintain water quality for safe drink- ily member or a friend, who has experi- management consistency in November ing water and for the fish and wildlife enced the devastating emotional and of 1998, conditioned on the project dependent on the river system. In addi- physical effects of breast or cervical modifications in my legislation and tion, this legislation promotes private- cancer. In my state of Oregon, more that were passed by the Senate in the public partnerships by authorizing $25 than 28,000 women are living with WRDA of 1998. million in federal funds for land acqui- breast cancer. In 1999, 500 women will Another critical component of the sition for the recreation area. The $25 die of breast cancer, and 200 women Agreement for all the parties is the million will be matched by private will die of cervical cancer. In an age of U.S. Fish and Wildlife Service’s re- funds. The State of Georgia, private advancing technology and improved quest, also supported by the Maine Au- foundations, corporate entities, private mammography, this is unacceptable, dubon Society, that the Corps expand individuals, and others have already and unbelievable. We can and must do the area covered by the bathymetric given or pledged tens of millions of dol- a better job for the women most at risk survey work that it will already be lars to protect and preserve the Chat- in this country. conducting as part of the monitoring tahoochee River for future generations The legislation I am introducing program for the harbor. The State and of Georgians to enjoy. today, gives us an opportunity to ex- the parties have agreed that the addi- I would like to thank Senator pand upon an existing program that tional survey will provide important CLELAND for co-sponsoring this impor- was enacted by Congress in 1990. The and useful information about the tant legislation and supporting my ef- Breast and Cervical Cancer Mortality erosional impacts of dredging in the forts to protect one of Georgia’s most Prevention Act created a breast and harbor. I have asked the Corps to make vital natural resources. I believe it is cervical cancer screening program for a good faith effort to honor this re- crucial for Congress to act quickly on low-income and uninsured women, and quest. this legislation in order to protect the women of racial and ethnic minority Again, I congratulate the parties in Chattahoochee River from any further populations throughout the United the state for what I realize is a fragile development and environmental dam- States. In its eighth year at the Cen- Agreement and wish to help bring this age. I look forward to working with ters for Disease Control (CDC) more long standing matter to the best con- Senator CLELAND and my other col- than 1.3 million screening tests for clusion possible both for the economy leagues in the Senate on this impor- breast and cervical cancer were pro- of the town of Wells and the environ- tant proposal and urge its speedy con- vided. The CDC estimates that if such ment of the harbor, the Rachael Carson sideration. services were available to all women at Wildlife Refuge nearby and the Wells risk, 15–20 percent of all deaths from National Estuarine Research Reserve, By Mr. SMITH of Oregon: breast cancer among women over 40 in which the harbor lies. S. 110. A bill to amend title XIX of could have been prevented. I want to thank Senator CHAFEE and the Social Security Act to provide Recognizing the success of this his Environment and Public Works medical assistance for breast and cer- screening program, the only question Committee for their work for success- vical cancer-related treatment services that remains is the availability of ful Senate passage for these bills in the to certain women screened and found treatment. For a low-income or unin- last Congress. When passed again by to have breast or cervical cancer under sured woman, a diagnosis of breast or the Senate and by the House—and a federally-funded screening program; cervical cancer means that the fight signed into law—the legislation will to the Committee on Finance. has just begun. Without adequate cov- allow the Maine towns involved to get THE BREAST AND CERVICAL CANCER TREATMENT erage for treatment, women in this on with much needed harbor economic ACT OF 1999 program are left to find their own cov- development and dredging. Mr. SMITH of Oregon. Mr. President, erage or rely upon public hospitals or I once again thank my colleagues and this evening, the President of the charity organizations. At Oregon ask for their continued support for pas- United States will speak to the 106th Health Sciences University (OHSU), sage of these bills, and I especially Congress and the country in his annual physicians are working overtime to want to urge the House to also move State of the Union address. As dis- treat patients and are facing limited forward on WRDA reauthorization. One tracted as we appropriately are by the budgets with which to provide services. project in one district in one state Senate trial of the President, it is nev- Mr. President, when a woman is diag- should not hold up the passage of this ertheless my hope that the Senate, by nosed with cancer, there should be no important legislation as was the situa- the conclusion of the 106th Congress, question of whether she will be treated; tion last year. This legislation will will have enacted a strong bipartisan rather, the answer should be ‘‘Abso- help the economy of small towns in agenda reflecting several core prin- lutely, as soon as possible,’’ not ‘‘How Maine—and many other lotions around ciples. First, we must ensure that our do you intend to pay for the treat- the country—who desperately need public education system provides a ment?’’ harbor reauthorization or dredging. high-quality, safe learning environ- The Breast and Cervical Cancer ment for all children; second, we must Treatment Act of 1999 seeks to expand By Mr. COVERDELL (for himself help working families save for the fu- upon the CDC screening program—with and Mr. CLELAND): ture; and third, we must support poli- an emphasis on continuity of care—by S. 109. A bill to improve protection cies that increase access to health care giving states the option of providing and management of the Chattahoochee services and improve the quality of Medicaid coverage for breast and cer- River National Recreation Area in the health care in this nation. vical cancer treatment services to State of Georgia; to the Committee on With respect to the third principle, I women who have been diagnosed Energy and Natural Resources. rise today to introduce the ‘‘Breast and through the CDC Breast and Cervical CHATTAHOOCHEE NATIONAL RECREATION AREA Cervical Cancer Treatment Act of Cancer Screening program. With this BOUNDARIES LEGISLATION 1999’’, legislation that my former col- legislation, a woman who is diagnosed Mr. COVERDELL. Mr. President, league, Senator D’Amato from New through the CDC screening program today I introduce legislation which York, proposed in the 105th Congress. would no longer have to worry about would modify the boundaries of the Last year, this legislation received bi- where to find treatment; the treatment January 19, 1999 CONGRESSIONAL RECORD — SENATE S543 would be available to her upon diag- communicates a threat could face im- ber of the immediate family of a Fed- nosis, by familiar physicians, in famil- prisonment of up to ten years. eral judge or law enforcement officer iar surroundings. Emphasizing the need for this legisla- from 5 years imprisonment to 10 years. Mr. President, this is not an issue of tion, are the experiences of Oregon’s It has the support of the Department of costs; it’s an issue of compassion. It is own Chief Judge Michael Hogan and his Justice, the United States Judicial an opportunity to say ‘‘yes, we’re here family. They were subjected to fright- Conference, the United States Sentenc- to help’’ to the women in our lives who ening, threatening phone calls, letters ing Commission and the United States need our help the most. I believe that and messages from an individual who Marshal Service. this bill creates a new beginning not had been convicted of previous crimes It is most troubling that the greatest only for families of the women who are in Judge Hogan’s courtroom. For democracy in the world needs this leg- and who will be fighting cancer in their months, he and his family lived with islation to protect the hard working lives, but for us as legislators as we the fear that these threats to the lives men and women who serve in our Fed- face a new millennium. I urge my col- of his wife and children could become eral judiciary and other law enforce- leagues to say yes by joining me in this reality, and, equally disturbing, that ment agencies. But, unfortunately, we opportunity to set a new standard in the individual could be back out on the are seeing more violence and threats of the way we meet the health care needs street again in a matter of a few violence against officials of our Fed- of women in this country. months, or a few years. eral government. Judge Hogan and his family are not Recently, for example, a courtroom By Mr. SMITH of Oregon (for alone. In April, 1997, the wife of a Cir- in Urbana, Illinois was firebombed, ap- himself, Mr. THURMOND, Mr. cuit Court judge in Florida was stalked parently by a disgruntled litigant. This LEAHY, and Mr. JEFFORDS): by an individual who had been con- follows the horrible tragedy of the S. 113. A bill to increase the criminal victed of similar offense in 1994 and bombing of the federal office building penalties for assaulting or threatening 1995. In this instance, the judge’s wife in Oklahoma City in 1995. In my home Federal judges, their family members, was leaving a shopping mall one after- state during the summer of 1997, a Ver- and other public servants, and for noon, and as she left the parking lot, mont border patrol officer, John other purposes; to the Committee on realized that she was being followed. In Pfeiffer, was seriously wounded by Carl the Judiciary. an attempt to lose her pursuer, she Drega, during a shootout with Vermont THE FEDERAL JUDICIARY PROTECTION ACT OF took alternative routes, speeding and New Hampshire law enforcement 1999 through residential streets. In a des- officers in which Drega lost his life. Mr. SMITH of Oregon. Mr. President, perate attempt, she cut in front of a Earlier that day; Drega shot and killed I rise today with my colleagues, Sen- semitrailer truck, risking a serious ac- two state troopers and a local judge in ators THURMOND, LEAHY, and JEFFORDS, cident and possible loss of life, to es- New Hampshire. Apparently, Drega was to introduce the Federal Judiciary Pro- cape. Even after his third offense, bent on settling a grudge against the tection Act of 1999, a bill to provide stalking the wife of a Circuit Court judge who had ruled against him in a greater protection to Federal law en- judge, her pursuer has been sentence to land dispute. forcement officials and their families. only six months of probation and $150 I had a chance to visit John Pfeiffer Last year, this legislation received in fines and the court costs. in the hospital and met his wife and strong bipartisan support and passed Mr. President, these are two exam- young daughter. Thankfully, Agent the Senate by Unanimous Consent on ples of vicious acts focused at our Fed- Pfeiffer has returned to work along the November 9, 1997. I intend to work with eral law enforcement officials and their Vermont border. As a federal law en- my colleagues and the members of the families. As a member of the legisla- forcement officer, Agent Pfeiffer and Judiciary Committee to ensure that tive branch, I believe that it is our re- his family will receive greater protec- this bill becomes public law this year. sponsibility to provide adequate pro- tion under our bill. Former Secretary of State, John Fos- tection to all Americans who serve to There is, of course, no excuse or jus- ter Dulles once stated that ‘‘Of all the protect the life and liberty of every cit- tification for someone taking the law tasks of government, the most basic is izen in this nation. I encourage my col- into their own hands and attacking or to protect its citizens against vio- leagues to join us in sponsoring this threatening a judge or law enforcement lence.’’ I believe that the Federal Judi- important legislation. officer. Still, the U.S. Marshal Service ciary Protection Act of 1999 gives us Mr. LEAHY. Mr. President, I am is concerned with more and more that very opportunity to strengthen proud to join Senator GORDON SMITH in threats of harm to our judges and law those laws that deter violence and pro- introducing the Federal Judiciary Pro- enforcement officers. vide protection to those whose careers tection Act of 1999. In the last Con- The extreme rhetoric that some have are dedicated to protecting our com- gress, I was pleased to cosponsor nearly used in the past to attack the judiciary munities and our families. identical legislation introduced by only feeds into this hysteria. For ex- Under current law, a person who as- Senator SMITH, which unanimously ample, one of the Republican leaders in saults, attempts to assault, or who passed the Senate Judiciary Commit- the House of Representatives has been threatens to kidnap or murder a mem- tee and the Senate but was not acted quoted as saying: ‘‘The judges need to ber of the immediate family of a upon by the House of Representatives. be intimidated,’’ and if they do not be- United States official, a United States I commend the Senator from Oregon have, ‘‘we’re going to go after them in judge or a Federal law enforcement of- for his continued leadership in protect- a big way.’’ I know that this official ficial, is subject to a punishment of a ing our Federal judiciary. did not intend to encourage violence fine or imprisonment of up to five Our bipartisan legislation would pro- against any Federal official, but this years, or both. This legislation seeks to vide greater protection to Federal extreme rhetoric only serves to de- expand these penalties in instances of judges, law enforcement officers and grade Federal judges in the eyes of the assault with a weapon and a prior their families. Specifically, our legisla- public. criminal history. In such cases, an in- tion would: increase the maximum Let none of us in the Congress con- dividual could face up to 20 years in prison term for forcible assaults, re- tribute to the atmosphere of hate and prison. sistance, opposition, intimidation or violence. Let us treat the judicial Importantly, this legislation would interference with a Federal judge or branch and those who serve within it also strengthen the penalties for indi- law enforcement officer from 3 years with the respect that is essential to viduals who communicate threats imprisonment to 8 years; increase the preserving its public standing. through the mail. Currently, individ- maximum prison term for use of a We have the greatest judicial system uals who knowingly use the United deadly weapon or infliction of bodily in the world, the envy of people around States Postal Service to deliver any injury against a Federal judge or law the globe who are struggling for free- communication containing any threat enforcement officer from 10 years im- dom. It is the independence of our are subject to a fine of up to $1,000 or prisonment to 20 years; and increase third, co-equal branch of government imprisonment of up to five years. the maximum prison term for threat- that gives it the ability to act fairly Under this legislation, anyone who ening murder or kidnaping of a mem- and impartially. It is our judiciary S544 CONGRESSIONAL RECORD — SENATE January 19, 1999 that has for so long protected our fun- has led to an increased reliance on for- ‘‘SEC. 769A. PHYSICAL THERAPY AND OCCUPA- damental rights and freedoms and eign-educated, non-immigrant tem- TIONAL THERAPY. ‘‘(a) IN GENERAL.—The Secretary may served as a necessary check on over- porary workers (H–1B visa holders). make grants to, and enter into contracts reaching by the other two branches, The U.S. Commission on Immigration with, programs of physical therapy and occu- those more susceptible to the gusts of Reform has identified physical therapy pational therapy for the purpose of planning the political winds of the moment. and occupational therapy as having the and implementing projects to recruit and re- We are fortunate to have dedicated highest number of H–1B visa holders in tain faculty and students, develop curricu- women and men throughout the Fed- the U.S., second only to computer spe- lum, support the distribution of physical eral Judiciary and law enforcement in cialists. While the INS does not cat- therapy and occupational therapy practi- this country who do a tremendous job egorize occupational therapy as a sepa- tioners in underserved areas, or support the under difficult circumstances. They are continuing development of these professions. rate profession when tracking H–1B ‘‘(b) PREFERENCE IN MAKING GRANTS.—In examples of the hard-working public visa entrants, the National Board of making grants under subsection (a), the Sec- servants that make up the federal gov- Certification in Occupational Therapy retary shall give preference to qualified ap- ernment, who are too often maligned documents that the percentage of plicants that seek to educate physical thera- and unfairly disparaged. It is unfortu- newly certified occupational therapists pists or occupational therapists in rural or nate that it takes acts or threats of vi- who are foreign graduates has risen urban medically underserved communities, olence to put a human face on the Fed- from 3% in 1985 to more than 20% in or to expand post-professional programs for eral Judiciary and other law enforce- 1995. the advanced education of physical therapy or occupational therapy practitioners. ment officials, to remind everyone that The legislation I introduce today these are people with children and par- ‘‘(c) PEER REVIEW.—Each peer review group would provide necessary assistance to under section 798(a) that is reviewing propos- ents and cousins and friends. They de- physical and occupational therapy pro- als for grants or contracts under subsection serve our respect and our protection. grams throughout the country. In (a) shall include not fewer than 2 physical I urge my colleagues to support the awarding grants, preference would be therapists or occupational therapists. Federal Judiciary Protection Act of given to applicants seeking to educate ‘‘(d) REPORT TO CONGRESS.— 1999 and look forward to its swift en- and train practitioners at clinical sites ‘‘(1) IN GENERAL.—The Secretary shall pre- actment into law. pare a report that— in medically underserved communities. ‘‘(A) summarizes the applications submit- By Mr. INOUYE: In addition to the shortage of practi- ted to the Secretary for grants or contracts S. 114. A bill to amend title VII of the tioners, the current shortage of phys- under subsection (a); Public Health Service Act to revise and ical therapy and occupational therapy ‘‘(B) specifies the identity of entities re- extend certain programs relating to faculty impedes the expansion of estab- ceiving the grants or contracts; and the education of individuals as health lished programs. The critical shortage ‘‘(C) evaluates the effectiveness of the pro- gram based upon the objectives established professionals, and for other purposes; of doctoral-prepared occupational therapists and physical therapists has by the entities receiving the grants or con- to the Committee on Health, Edu- tracts. resulted in an almost nonexistent pool cation, Labor, and Pensions. ‘‘(2) DATE CERTAIN FOR SUBMISSION.—Not PHYSICAL THERAPY AND OCCUPATIONAL of potential faculty. Presently, there later than February 1, 2001, the Secretary THERAPY EDUCATION ACT OF 1999 are 117 faculty vacancies among 131 ac- shall submit the report prepared under para- Mr. INOUYE. Mr. President, today I credited physical therapy programs in graph (1) to the Committee on Commerce rise to introduce the Physical and Oc- the U.S. Similiarily, during the 1995– and the Committee on Appropriations of the cupational Therapy Education Act of 1996 academic year there were 51 fac- House of Representatives, the Committee on 1999. This legislation will increase edu- ulty vacancies among 85 accredited Labor and Human Resources and the Com- professional level occupational therapy mittee on Appropriations of the Senate. cational opportunities for physical ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— therapy and occupational therapy prac- programs. The legislation I introduce For the purpose of carrying out this section, titioners in order to meet the growing today would assist in the development there is authorized to be appropriated demand for the valuable services they of a pool of qualified faculty by giving $3,000,000 for each of the fiscal years 2000 provide in our communities. preference to applicants seeking to de- through 2003.’’. In its most recent report, the Depart- velop and expand post professional pro- ment of Labor’s Bureau of Labor Sta- grams for the advanced training of By Ms. SNOWE (for herself and tistics (BLS) projected that the de- physical and occupational therapists. Mrs. FEINSTEIN): mand for services provided by physical The investment we make through S. 115. A bill to require that health therapists will increase dramatically passage of the Physical Therapy and plans provide coverage for a minimum over the next decade. According to the Occupational Therapy Education Act hospital stay for mastectomies and BLS statistics, the increase in demand of 1999 will help reduce America’s de- lymph node dissection for the treat- for these services will create a need for pendence on foreign labor and create ment of breast cancer and coverage for 81,000 additional therapists, an 80% in- highly-skilled, high-wage employment secondary consultations; to the Com- crease over 1994 figures. opportunities for American citizens. I mittee on Health, Education, Labor, The BLS also predicts an increased look forward to working with my col- and Pensions. demand for occupational therapists. leagues in Congress to enact this im- WOMEN’S HEALTH AND CANCER RIGHTS ACT OF According to the BLS, by the year 2005, portant legislation. 1999 the increase in demand will create a Mr. President, I ask unanimous con- Ms. SNOWE. Mr. President, on behalf need for 39,000 additional occupational sent that the text of this bill be printed of myself and the Senator from Califor- therapists, a 72% increase over 1994 fig- in the RECORD. nia, Mrs. FEINSTEIN, I rise today to in- ures. There being no objection, the bill was troduce the Women’s Health and Can- Several factors contribute to the ordered to be printed in the RECORD, as cer Rights Act of 1999. We supported present need for federal support in this follows: this bill in the 105th Congress when it area. The rapid aging of our nations’ S. 114 was championed by my friend, the Sen- population, the demands of the AIDs Be it enacted by the Senate and House of Rep- ator from New York, Mr. D’AMATO, and crisis, increasing emphasis on health resentatives of the United States of America in we are reaffirming our support for this promotion and disease prevention, and Congress assembled, important issue by reintroducing this the growth of home health care have SECTION 1. SHORT TITLE. bill today. Last year we did make some exceeded our ability to educate an ade- This Act may be cited as the ‘‘Physical progress on this bill as one piece—re- quate number of physical therapy and Therapy and Occupational Therapy Edu- quiring insurance companies to cover occupational therapy practitioners. In cation Act of 1999’’. reconstructive surgery was included in addition, technological advances are SEC. 2. PHYSICAL THERAPY AND OCCUPATIONAL the final Omnibus spending bill en- THERAPY. allowing injured and disabled individ- Subpart 2 of part E of title VII of the Pub- acted into law last October. uals to survive conditions that, in past lic Health Service Act, as amended by the This bill is about doing what’s best years, would have proven fatal. Health Professions Education Partnerships for women facing the crisis of a cancer America’s inability to educate an Act of 1998, is amended by inserting after diagnosis and a potential mastectomy. adequate number of physical therapists section 769, the following: Because right now some women are January 19, 1999 CONGRESSIONAL RECORD — SENATE S545 being denied the best health care avail- typically have little or no access to dividual feels about the future: the de- able. That is simply not acceptable in a employer-provided training. gree to which he or she knows that country of such vast medical resources. Mr. President, many Federal pro- their skills match the needs of their This year, millions of Americans will grams focus on the needs of those current employer or other prospective face the possibility of a cancer diag- whose challenges and difficulties are employers in the marketplace. Without nosis, and 180,000 women will be diag- most easily recognized and tangible. this knowledge, it does not matter to nosed with breast cancer. Our bill pro- When we see a hungry child, an unem- an individual if the unemployment rate vides women with breast cancer and all ployed adult, or an impoverished senior is as low as economists consider the Americans facing a cancer diagnosis citizen, we justifiably want to reach ‘‘natural rate of unemployment’’ or if with some basic protections. out and do what we can to help. Indeed, the newspapers tell him or her that the First, it ensures that doctors are not I am proud to be an active voice for economy couldn’t be better. The simple pressured by health plans to release those whose challenges and pains we fact is that unless an individual per- mastectomy patients before it is medi- can sometimes only imagine. However, sonally feels that their skills are up-to- cally appropriate. Currently, some in- it is oftentimes difficult to recognize date and marketable, there will never surers have guidelines recommending the needs of those whose challenges are be a complete sense of security on the that mastectomies be performed on an less tangible, whose concerns are less job from one day to the next. outpatient basis. A mastectomy is a evident, or whose sense of insecurity And that’s what the legislation I am very complicated surgical procedure about the future is known only by the introducing today is all about. The and complications can arise as a result. individual and their family. ‘‘Working American Training Voucher Sending a woman home immediately It is this difficulty that confronts Act’’ addresses the needs of the average after the surgery is not always the many American workers today. In the American worker—the individual who right thing to do. They may not have face of increasing global competition, has a job today, but doesn’t know if he the information they need nor, more many workers wonder if the job they or she has the skills needed for the jobs importantly, the care. We want to have today will be there for them to- of tomorrow. The person who’s collect- morrow. They are concerned that the make sure—and this bill will—that the ing a paycheck now, but is concerned advent of new technologies is making decisions are made in the context of that the rapidly changing work envi- their skills and talents less useful for the medical well being of the patient as ronment may put an end to that soon. their current employers which, in turn, opposed to being made by an insurance Mr. President, we all know new tech- makes them feel more vulnerable and company bureaucrat. nologies and new products are entering This decision must be returned to expendable. And they wonder if the the workplace at an unprecedented physicians and their patients. The skills they posses today are even mar- rate and the changes these tech- ketable if they are ‘‘down-sized’’ or physical scars left by a mastectomy nologies bring are substantial. Few otherwise put out of work. can be complicated and difficult to professions and few jobs have gone un- Unfortunately, these types of con- touched by these changes—and even care for, and often require supervision. cerns and anxieties of oftentimes do Women prematurely released may not not show on the surface, so it can be fewer will be immune from change in have the information they need, and difficult for others to recognize or ad- the future. Indeed, just as computers some dangerous complications can dress them. It is too easy for many to have changed the face of manufactur- arise hours after the operation. And all assume that because a man or woman ing, they have also changed the world of this is happening in context of the is already holding down a job, all is of art and design. Even labor intensive intense emotional trauma that comes well and his or her future is secure. tasks at assembly shops have taken on with losing part or all of a breast. After all, how bad can it be if you’re a high-tech flair thanks to new Finally, all Americans who face the punching a time clock and getting a techologies. possibility of a cancer diagnosis must paycheck? Unfortunately, such a view For an individual who understands be able to make informed decisions is not only shortsighted, it is also mis- these technologies or receives training about appropriate medical care. To do guided and could prove disastrous. in their use, these changes present ex- that, they need access to all the infor- We should not wait until a worker citing new opportunities that improve mation available. Our bill requires in- has been laid-off from their job, or a performance and ultimately give one a surance companies to pay full coverage company shuts its doors and shutters sense of assurance that their skills are for secondary consultations with a spe- its windows, to take steps to help the in demand. But for those who do not cialist whenever any cancer has been American worker. Rather, we should understand these technologies or do diagnosed or a treatment rec- take steps to ensure that our nation’s not receive training in their use, these ommended. This will reduce senseless workforce is confident of their future technologies are nothing more than a deaths resulting from false diagnoses and feels prepared to address the threat and a cause for anxiety. and empower individuals to seek the changes that tomorrow will bring. Not Regrettably, even as the demand for most appropriate available treatment. only does this help the individual, but training at all levels in the workplace Women with breast cancer and all I think we would all agree that the continues to grow because of these Americans facing a cancer diagnosis best way to reduce the impact and cost changing techologies, the United cannot wait any longer. I would urge of unemployment is to take steps to States has historically lagged far be- my colleagues to join me in supporting keep those who are already employed hind our global competitors in training this bill in order to provide the protec- on-the-job! workers. In fact, a study by the Con- tions granted under this bill now. Admittedly, many policies and deci- gressional Office of Technology Assess- sions play an integral role in creating ment concluded: ‘‘When measured by By Ms. SNOWE: a vibrant job market. The tax burden international standards, most Amer- S. 116. A bill to establish a training we place on businesses, the trade agree- ican workers are not well trained.’’ voucher system, and for other pur- ments we sign with foreign govern- While some U.S. companies devote a poses; to the Committee on Health, ments, and the regulatory load we substantial amount of money to train- Education, Labor, and Pensions. place on employers all have a signifi- ing, many of our global competitors WORKING AMERICAN TRAINING VOUCHER ACT cant impact on our economy’s ability spend considerably more. A study by Ms. SNOWE. Mr. President, I rise to produce and sustain good jobs. How- the American Society for Training and today to introduce legislation that will ever, for the individual, many of these Development highlighted this point address a serious need of America’s policies seem too ‘‘macro’’ to have an when it found that U.S. companies workers: the need to receive training impact on their own employment pros- spend—in the aggregate—approxi- that will prepare individuals for the pects. In fact, an individual may not mately 1.4 percent of their payroll on workplace of the 21st Century. My leg- even recognize the direct impact these training, while a number of our com- islation, entitled the ‘‘Working Amer- broader policies have on their job from petitor nations actually require compa- ican Training Voucher Act,’’ would day to day. nies to spend 2 to 4 percent! While I provide $1,000 training vouchers to 1 There is, however, one issue that would not espouse a mandatory train- million working men and women who truly strikes at the heart of how an in- ing budget for any business, I believe S546 CONGRESSIONAL RECORD — SENATE January 19, 1999 we can and should seek to improve the ity for the development, management, the future. It is targeted to those who availability of training for our nation’s and administration of job training pro- are most in need of assistance, and will workers—and especially for those who grams in the JTPA, so no new distribu- ensure that we no longer wait until an need it most but are least likely to re- tion network would be necessary to individual is out of work to provide ceive it. And that’s precisely who the conduct this voucher program. help. ‘‘Working American Training Vouch- The only major requirement for re- The Federal government often prom- er’’ is designed to reach. ceiving a voucher would be that the ises the American people many things, Mr. President, the ‘‘Working Amer- employee and employer must agree on but we can never offer peace of mind to ican Training Voucher’’ would provide the specific training that will be pur- a worker who doesn’t know if his or her access to critically needed training for chased with the voucher. This will en- skills are adequate to keep them em- workers at businesses with 200 or fewer sure that the training will be targeted ployed. Let’s take a step in the right employees. Why is it targeted to work- specifically to the needs of the individ- direction and at least ensure that those ers in small businesses? Quite simply, ual and the business—money would not who have a job will not lose it due to a because these are the individuals who be spent on generic training programs lack of access to training and new are the least likely to receive—or be that teach skills that are of little, if skills. Let’s pass the ‘‘Working Amer- offered—employer-provided training. any, use in a particular field or job. ican Training Voucher Act.’’ The same report by the Congressional Furthermore, such an agreement will Mrs. FEINSTEIN. Mr. President, Office of Technology Assessment sum- ensure that workers are actively en- today, I am introducing the Women’s marized the plight of employees at gaged in pursuing training that will Health and Cancer Rights Act of 1999 small businesses quite succinctly: help their careers, even as employers with Senator OLYMPIA SNOWE. ‘‘Many (employees) in smaller firms re- will be urging employees to undertake This bill has four provisions: ceive no formal training.’’ training that will help the business. For breast cancer— A 1997 report—completed by Profes- Last year, JTPA programs were re- 1. It requires insurance plans to cover sor Craig Olson at the University of crafted and consolidated as part of the hospital stays as determined by the at- Wisconsin-Madison and presented to Workforce Investment Act (WIA) of tending physician, in consultation with the Senate Manufacturing Task Force 1998—a law that greatly improved the the patient, to be medically appro- during the 105th Congress—looked at delivery of federal job training monies. priate. Our bill does not prescribe a the difference between the likelihood Specifically, up until the passage of fixed number of days or set a mini- an individual would receive training the WIA, there was virtually no federal mum. It leaves the length of hospital and the level of educational achieve- money for workers that are already stay up to the treating physician. ment he or she attained, or the field he employed. But with WIA’s enactment, 2. It requires insurance plans to pro- or she chose to enter. Dr. Olson’s study we are beginning to place some much vide notice to plan subscribers of these found that individuals with a bach- needed attention on the needs of in- requirements. elor’s or master’s degree had a 50 per- cumbent workers, and the ‘‘Working For all cancers— cent chance of receiving training in the American Training Voucher Act’’ will 3. It prohibits insurance plans from past year, while individuals with a high vastly expand access to training for linking financial or other incentives to school diploma had only a 17 percent those who need it most. a physician’s provisions of care. chance. Those who dropped-out of high Mr. President, I believe that as we 4. It requires plans to cover second school fared even worse: their odds of prepare our workforce for the next cen- opinions by specialists to confirm or receiving training were only 5 percent. tury, we should be encouraging work- refute a diagnosis. If the attending When viewed by occupation, individ- ers to develop new skills that will im- physician certifies that there is no ap- uals who worked in production- or prove their longevity in their current propriate specialist practicing under service-related jobs had only a 16 per- jobs even as they gain confidence that the insurance plan, the plan must en- cent and 18 percent chance of receiving their skills will be needed in the fu- sure that coverage is provided outside training respectively, while those in ture. Not only will these new skills in- the plan for a second opinion by a management had a 50 percent chance. crease the confidence and performance qualified specialist selected by the at- When considering that only one in four of the individual worker, but they will tending physician at no additional cost American workers received training in also improve the productivity of the to the patient beyond that which the the past 12 months, these odds don’t business who employs them. And we all patient would have paid if the special- bode well for many employees at small know that if we improve a business’ ist were participating in the plan. businesses whose educational attain- productivity and output, that business NEED FOR LEGISLATION ment and occupations fall in the cat- is more likely to survive and thrive— The movement from inpatient to out- egories that are the least likely to re- which means that this voucher may ul- patient mastectomies and reduced hos- ceive training. timately assist in preserving busi- pital stays for mastectomies in recent One might understandably ask: Why nesses and jobs in the long run. years has been documented. A June 3, is it that small businesses often pro- Furthermore, better skills and train- 1998 study in the Journal of the Na- vide so little training? The answer: ing will ensure that individuals are tional Cancer Institute found that from cost. Small businesses are quite often able to rapidly transition to new jobs 1986 to 1995 ‘‘the proportion of unable to afford the cost of sending an in the unfortunate event their current mastectomies performed on an out- employee to a training program. When job is lost for reasons beyond their con- patient basis increased from virtually your business is just trying to make trol. Regardless of how favorable the 0% to 10.8%,’’ said these researchers. ends meet, it’s impossible to send an tax code is made or how many burden- This report also says that the data employee to a training class that costs some regulations we remove, we will ‘‘clearly suggested a shorter average the business both money and time never be able to guarantee an individ- length of stay and a higher likelihood away from work. ual that his or her job will be around of a short stay for women covered by Mr. President, the ‘‘Working Amer- forever. But we can provide a worker HMOs’’ and that ‘‘while short stays ap- ican Training Voucher’’ is designed to with access to training that will keep pear to be more prevalent among HMO address this problem in a straight- his or her skills up-to-date and market- enrollees, they are not limited exclu- forward and efficient way. These able no matter what the future holds. sively to women with HMO coverage.’’ vouchers-valued at up to $1,000 each— Mr. President, the ‘‘Working Amer- Another study, by the medical re- would be made available to employees ican Training Voucher’’ would be a search firm HCIA of Baltimore, Mary- at small business through the existing tangible, concrete, and definable pro- land, found that in 1995, 7.6 percent of job training system that is already in gram that would address a core issue the 110,000 breast removals in the coun- place as a result of the Job Training facing American workers. It will en- try were done on an outpatient basis, Partnership Act (JTPA). As my col- sure that those who typically have the up from 1.6 percent in 1991. leagues in the Senate know, state and least access to training will be able to Another study found that the average local governments—joined by the pri- acquire the skills needed for their cur- length of stay for women who have had vate sector—have primary responsibil- rent jobs, while improving their jobs in a mastectomy is 4.34 days nationally, January 19, 1999 CONGRESSIONAL RECORD — SENATE S547 but in California, it is 2.98 days, the Patients who have mastectomies in home, are one glaring example of the shortest in the country. (New York has outpatient settings have higher rates rising tide abuses faced by patients and the longest mastectomy length of stay of rehospitalization than women with a physicians who have to ‘‘battle’’ with at 5.78 days.) This study, published in one-day hospital stay, according to the their HMOs to get coverage of the care the winter 1997–1998 issue of Inquiry, study reported in the Journal of the that physicians believe is medically says: National Cancer Institute. necessary. California had the highest proportion of As the National Breast Cancer Coali- NO FINANCIAL INCENTIVES mastectomy patients discharged after only tion wrote me on March 12, 1998: ‘‘The For all cancers, our bill also pro- one day or within two days . . . Nearly 12% NBCC applauds this effort and believes hibits insurance plans from including of mastectomy patients in California were this compromise will put an end to the financial or other incentives to influ- discharged with a length of stay equal to one dangerous health insurance practices day; the next highest proportion was 4.8% in ence the care a doctor’s provides, simi- Massachusetts; the percentages in the other that allow cost and not medical evi- lar to a law passed by the California three states ranged from 1.1% to 2.2%. dence to determine when a woman legislature last year. Many physicians A July 7, 1997 study by the Connecti- leaves a hospital after cancer surgery.’’ have complained that insurance plans cut Office of Health Care Access found SOME ACCOMPLISHMENTS LAST YEAR include financial bonuses or other in- the average hospital length of stay for In the last Congress, Senators centives for cutting patient visits or breast cancer patients undergoing D’Amato, SNOWE and I introduced a for not referring patients to specialists. mastectomies decreased from three similar bill, S. 249, which also included Our bill bans financial incentives days in 1991 and 1993 to two days in 1994 a requirement that plans cover breast linked to how a doctor provides care. and 1995. This study said, ‘‘The percent- reconstruction following a mastec- Our intent is to restore medical deci- age of mastectomy patients discharged tomy. Fortunately, Congress passed sion-making to health care. after one-day stays grew about 700 per- and the President signed that part of For example, a California physician cent from 1991 to 1996.’’ our bill, into law, the omnibus appro- wrote me, ‘‘Financial incentives under The Wall Street Journal on Novem- priations bill for FY 1999, now P.L. 105– managed care plans often remove ac- ber 6, 1996, reported that ‘‘some health 277. cess to pediatric specialty care.’’ A maintenance organizations are creat- The mastectomy hospital length-of- June 1995 report in the Journal of the ing an uproar by ordering that stay and the other provisions did not National Cancer Institute cited the mastectomies be performed on an out- become law, despite many efforts: suit filed by the husband of a 34-year patient basis. At a growing number of At our request, the Senate Finance old California woman who died from HMOs, surgeons must document ‘medi- Committee held a hearing on S. 249 on colon cancer, claiming that HMO in- cal necessity’ to justify even a one- November 5, 1997. centives encouraged her physicians not night hospital admission.’’ We attempted to get this considered to order additional tests that could And so the studies confirm that (1) by the Senate, three times in 1998: have saved her life. hospital lengths of stay for On March 16, we filed it as an amend- SECOND OPINIONS mastectomies are decreasing and (2) ment to H.R. 2646, the Parent and Stu- Finally, our bill requires plans to more mastectomies are being done on dent Savings Account PLUS Act. cover second opinions by specialists for an outpatient basis. On May 6, we filed it as an amend- all cancers when a patient requests INCIDENCE OF BREAST CANCER ment to H.R. 2676, the IRS restructur- them. And if the attending physician In 1998, over 180,000 people (one in ing bill. certifies that there is no appropriate every 8 American women) were diag- On May 12, we tried to bring the bill specialist practicing under the plan, nosed with invasive breast cancer and to a vote in the Senate, but were the plan must cover a second opinion 44,000 women died from breast cancer. blocked. outside the plan by a qualified special- Only lung cancer causes more cancer In addition, Senator D’Amato offered ist selected by the attending physician, deaths in American women. There are it as an amendment in the Finance at no additional cost to the patient be- 2.6 million American women living Committee twice. yond that which the patient would with breast cancer today. TWO CALIFORNIA CASES have paid if the specialists were par- In my state, in 1998, approximately Two California women have shared ticipating in the plan. 17,600 women were diagnosed with their real-life experiences with me: The alarm of learning one has cancer breast cancer and 4,300 died, according Nancy Couchot, age 60, of Newark, is profound. It affects the individual to the American Cancer Society. Offi- California, wrote me that she had a and the whole family deeply. People cials at the Northern California Cancer modified radical mastectomy on No- need the best medical judgment they Center say that breast cancer incidence vember 4, 1996, at 11:30 a.m. and was re- can get, to make some of the most im- rates in Los Angeles and San Francisco leased by 4:30 p.m. She could not walk portant decisions of their lives. I be- are significantly higher than national and the hospital staff did not help her lieve plans should cover a second opin- rates. ‘‘even walk to the bathroom.’’ She ion, so that patients can get the best THE STRESS OF MASTECTOMY; THE NEED FOR says, ‘‘Any woman, under these cir- care possible and can try to find some CARE cumstances, should be able to opt for peace of mind that they are getting After a mastectomy, patients must an overnight stay to receive profes- competent, complete medical advice. cope with pain from the surgery, with sional help and strong pain relief.’’ CONCLUSION drainage tubes and with psychological Victoria Berck, of Los Angeles, wrote This bill would restore professional loss—the trauma of an amputation. that she had a mastectomy and lymph medical decision making to medical These patients need medical care from node removal at 7:30 a.m. on November doctors, those whom we trust to take trained professionals, medical care 13, 1996, and was released from the hos- care of us. It should not take an act of that they cannot provide themselves at pital 7 hours later, at 2:30 p.m. Ms. Congress to guarantee good health home. A woman fighting for her life Berck was given instructions on how to care, but unfortunately that is where and her dignity should not also be sad- empty two drains attached to her body we are today. As the National Breast dled with a battle with her health in- and sent home. She concludes, ‘‘No civ- Cancer Coalition wrote, ‘‘. . . until surance plan. ilized country in the world has mastec- guaranteed access to quality health Dr. Christine Miaskowski at the Uni- tomy as an outpatient procedure.’’ care coverage and service is available versity of California, San Francisco, These are but two examples of what I for all women and their families, there estimates that about 20 percent of believe is happening around the coun- are some very serious patient concerns women who have breast cancer surgery ty—insurance plans interfering with that must be met. Without meaningful have chronic pain of long duration. A professional medical judgment and ar- health care reform, market forces pro- University of California, San Diego, bitrarily reducing care without a medi- pel the changes in the health care sys- study suggests that the rate may be cal basis. tem and women are at risk of being double that, reports the May 20, 1998 Premature discharges for mastec- forced to pay the price by having inap- Journal of the National Cancer Insti- tomy, with insurance plans strong- propriate limits placed on their access tute. arming physicians to send women to quality health care.’’ S548 CONGRESSIONAL RECORD — SENATE January 19, 1999 This is an important protection for tient Access to Clinical Studies Act of merce and a U.S. Trade Representative, millions of Americans who face the 1999, to prohibit insurance companies both Federal entities, responsible for fear, the reality and the costs of cancer from denying coverage for services pro- our larger, national U.S. trade inter- every day. Seven states have a law al- vided to individuals participating in ests. But the facts is that too often lowing a physician to determine the clinical trials, if those services would such entities fail to give full consider- length of stay following a mastectomy. otherwise be covered by the plan. This ation to the interests of the 12 north- Seven states have a required 48-hour bill would also prevent health plans ern States that share a border with minimum stay requirement. from discriminating against enrollees Canada, the longest demilitarized bor- It is long past time for this Congress who choose to participate in clinical der between two nations anywhere in to send a strong message to insurance trials. the world. The Northern Border States companies. Medical decisions must be This bill has a two-fold purpose. Council will provide State trade offi- made by medical professionals, not First, it will ensure that many patients cials with a mechanism to share infor- anonymous insurance clerks. who could benefit from these poten- mation about cross-border traffic and tially life-saving investigational treat- trade. The Council will then advise the By Ms. SNOWE: ments but currently do not have access Congress, the President, the U.S. Trade S. 117. A bill to permit individuals to to them because their insurance will Representative, the Secretary of Com- continue health plan coverage of serv- not cover the associated costs. Second, merce, and other Federal and State ices while participating in approved without reimbursement for these serv- trade officials on United States-Canada clinical studies; to the Committee on ices, our researchers’ ability to con- trade policies, and problems. Health, Education, Labor, and Pen- duct important research is impeded as Canada is our largest and most im- sions. it reduces the number of patients who portant trading partner. Canada is by seek to participate in clinical trials. far the top purchaser of U.S. export By Ms. SNOWE: The second bill will give breast can- goods and services, as it is the largest S. 118. A bill to amend the Public cer advocates a voice in the National source of U.S. imports. In 1997, for in- Health Service Act to provide, with re- Institutes of Health’s (NIH’s) research stance, Canada imported over $151.7 spect to research on breast cancer, for decision-making. The Consumer In- million worth of U.S. goods. With an the increased involvement of advocates volvement in Breast Cancer Research economy one-tenth the size of our own, in decision making at the National Act urges NIH to follow the Depart- Canada’s economic health depends on Cancer Institute; to the Committee on ment of Defense’s lead and include lay maintaining close trade ties with the Health, Education, Labor, and Pen- breast cancer advocates in breast can- United States. While Canada accounts sions. cer research decision-making. for about one-fifth of U.S. exports and BREAST CANCER LEGISLATION The involvement of these breast can- imports, the United States is the Ms. SNOWE. Mr. President, today I cer advocates at DOD has helped foster source of two-thirds of Canada’s im- am introducing two bills which build new and innovative breast cancer re- ports and provides the market with on progress made in the 105th Congress search funding designs and research fully three-quarters of all of Canada’s in the difficult and challenging fight projects. While maintaining the high- exports. against breast cancer. est level of quality assurance through The United States and Canada have Our challenge was summed up by one peer review, breast cancer advocates the largest bilateral trade relationship breast cancer advocate when she stat- have helped to ensure that all breast in the world, a relationship that is re- ed, simply and eloquently, ‘‘We must cancer research reflects the experi- markable not only for its strength and make our voices heard, because it is ences and wisdom of the individuals general health, but also for the inten- our lives.’’ Indeed, breast cancer con- who have lived with the disease, as well sity of the trade and border problems tinues to claim the lives of our moth- as the scientific community. that do frequently develop—as we have ers, sisters, daughters, and wives. With I hope that my colleagues will join seen this past year with actual farmer about 1 in 8 women at risk for develop- me in supporting these two bills which border blockades in some border states ing breast cancer, there is scarcely a will help those suffering from breast because of the unfairness of agricul- family in America unaffected by the cancer and their families as well as our tural trade policies. Over the last dec- disease. researchers who are seeking the cure ade, Canada and the United States By the end of this year alone, over for this devastating disease. have signed two major trade agree- 178,000 women will have been diagnosed ments—the United States-Canada Free with breast cancer. Over 43,500 will By Ms. SNOWE: Trade Agreement in 1989, and the North have died. And with each life stolen, S. 119. A bill to establish a Northern American Free Trade Agreement, or our nation is weakened immeasurably. Border States-Canada Trade Council, NAFTA, in 1993. Notwithstanding these We took an important step forward and for other purposes, to the Commit- trade accords, numerous disagreements in the last Congress to combat this tee on Finance. have caused trade negotiators to shut- deadly foe. In the Food and Drug Ad- THE NORTHERN BORDER STATES COUNCIL ACT tle back and forth between Washington ministration Reauthorization Act, Ms. SNOWE. Mr. President, today I and Ottawa, most recently for solu- Congress included language based on a am introducing legislation that would tions to problems for grain trade, bill I introduced with the Senator from establish a Northern Border States wheat imports, animal trade, and joint California, Senator FEINSTEIN, to cre- Council on United States-Canada trade. cooperation on Biotechnology. I might ate a ‘‘one-stop shopping information The purpose of this Council is to add at recent negotiations, there was service’’ for individuals with life- oversee cross-border trade with our Na- still no movement towards solutions threatening diseases looking to obtain tion’s largest trading partner—an ac- for the potato industry, but I have been information about privately and pub- tion that I believe is long overdue. The promised by the USDA that it is now licly funded clinical trials. This service Council will serve as an early warning the top priority for discussion. provides information describing the system to alert State and Federal Most of the more well-known trade purpose of the trial, eligibility criteria trade officials to problems in cross-bor- disputes with Canada have involved ag- and the location. It gives individuals, der traffic and trade. The Council will ricultural commodities such as durum their families and physicians an 800 enable the United States to more effec- wheat, peanut butter, dairy products, number to call to obtain the latest in- tively administer trade policy with and poultry products, and these dis- formation about these trials—trials Canada by applying the wealth of in- putes, of course, have impacted more that could save a loved ones life and sight, knowledge and expertise of peo- than just the 12 northern border trials that could help put us a step ple who reside not only in my State of States. closer to our ultimate goal—finding a Maine, but also in the other eleven Each and every day, however, an cure. northern border States as well, on this enormous quantity of trade and traffic Much remains to be done before we critical policy issue. crosses the United States-Canada bor- conquer breast cancer, so today I am Within the U.S. Government we al- der. These are literally thousands of reintroducing a bill, the Improved Pa- ready have the Department of Com- businesses, large and small, that rely January 19, 1999 CONGRESSIONAL RECORD — SENATE S549 on this cross-border traffic and trade dispute existed elsewhere along the of Commerce. Each northern border for their livelihood. United States-Canada border, or State will have two members on the My own State of Maine has had a whether it was a more localized prob- Council. The Council members will be long-running dispute with Canada over lem. If a body like the Northern Border unpaid, and serve as 2-year term. that nation’s unfair policies in support States Council had existed when the The Northern Border States Council of its potato industry, and I know that collection of the PST began, it could on United States-Canada Trade will the upper mid-west and the western have immediately started investigat- not solve all of our trade problems with states have problems as well. Specifi- ing the issue to determine its impact Canada. But it will ensure that the cally, Canada protects its domestic po- and would have made recommendations voices and views of our northern border tato growers from United States com- as to how to deal with it. States are heard in Washington by our petition through a system of nontariff The long-standing pattern of unsuc- Federal trade officials. For too long trade barriers, such as setting con- cessful negotiations is alarming, with their voices have been ignored, and the tainer size limitations and a prohibi- no solution on the horizon from the northern border States have had to suf- tion on bulk shipments from the federal entities in charge, as the indus- fer severe economic consequences at United States. try in Maine and other states in the various times because of it. This legis- This bulk import prohibition effec- U.S. continues to strive to stay com- lation will bring our States into their tively blocks United States potato im- petitive despite the trade barriers rightful position as full partners for ports into Canada and was one topic of thrown up against their potatoes. issues that affect cross-border trade discussion during an International In short, the Northern Border States and traffic with our country’s largest Trade Commission investigations hear- Council will serve as the eyes and ears trading partner. I urge my colleagues ing on April 30, 1997, where I testified of our States that share a border with to join me in supporting this important on behalf of the Maine potato growers. Canada, and who are most vulnerable legislation. The ITC followed up with a report stat- to fluctuations in cross-border trade ing that Canadian regulations do re- and traffic. The Council will be a tool By Ms. SNOWE: strict imports to bulk shipments of for Federal and State trade officials to S. 120. A bill to amend title II of the fresh potatoes for processing or repack- use in monitoring their cross-border Trade Act of 1974 to clarify the defini- ing, and that the U.S. maintains no trade. It will help insure that national tion of domestic industry and to in- such restrictions. These bulk shipment trade policy regarding America’s larg- clude certain agricultural products for restrictions continue, and, at the same est trading partner will be developed purposes of providing relief from injury time, Canada also artificially enhances and implemented with an eye towards caused by import competition, and for the competitiveness of its product the unique opportunities and burdens other purposes; to the Committee on through domestic subsidies for its po- present to the northern border states. Finance. tato growers. The Northern Border States Council THE AGRICULTURAL TRADE REFORM ACT OF 1999 Another trade dispute with Canada, will be an advisory body, not a regu- specifically with the province of New latory one. Its fundamental purpose Ms. SNOWE. Mr. President, I am in- Brunswick, originally served as the in- will be to determine the nature and troducing legislation today to give ag- spiration for this legislation. In July cause of cross-border trade issues or ricultural producers, including potato 1993, Canadian federal customs officials disputes, and to recommend how to re- producers, some important and badly began stopping Canadians returning solve them. needed new tools for combating injuri- from Maine and collecting from them The duties and responsibilities of the ous increases in imports from foreign the 11-percent New Brunswick Provin- Council will include, but not be limited countries. cial Sales Tax [PST] on goods pur- to, providing advice and policy rec- The Trade Act of 1974 contains provi- chased in Maine. Canadian Customs Of- ommendations on such matters as tax- sions that permit U.S. industries to ficers had already been collecting the ation and the regulation of cross-bor- seek relief from serious injury caused Canadian federal sales tax all across der wholesale and retail trade in goods by increased quantities of imports. In the United States-Canada border. The and services; taxation, regulation and practice, however, it has been very dif- collection of the New Brunswick PST subsidization of food, agricultural, en- ficult for many U.S. industries to actu- was specifically targeted against goods ergy, and forest-products commodities; ally secure action under the Act to purchased in Maine—not on goods pur- and the potential for Federal and remedy this kind of injury. chased in any of the other provinces State/provincial laws and regulations, The ineffectiveness of the Act results bordering New Brunswick. including customs and immigration from some of the specific language in After months of imploring the U.S. regulations, to act as nontariff barriers the statute. Specifically, the law re- Trade Representative to do something to trade. quires the International Trade Com- about the imposition of the unfairly As an advisory body, the Council will mission, when evaluating a petition for administered tax, then Ambassador review and comment on all Federal relief from injury, to consider whether Kantor agreed that the New Brunswick and/or State reports, studies, and prac- the injury affects the entire U.S. indus- PST was a violation of NAFTA, and tices concerning United States-Canada try, or a segment of an industry lo- that the United States would include trade, with particular emphasis on all cated in a ‘‘major geographic area’’ of the PST issue in the NAFTA dispute reports from the dispute settlement the U.S. whose production constitutes settlement process. But despite this ex- panels established under NAFTA. a ‘‘substantial portion’’ of the total do- plicit assurance, the issue was not, in These Council reviews will be con- mestic injury. This language has been fact, brought before NAFTA’s dispute ducted upon the request of the United interpreted by the ITC to mean that all settlement process, prompting Con- States Trade Representative, the Sec- or nearly all of the U.S. industry must gress in 1996, to include an amendment retary of Commerce, a Member of Con- be seriously injured by the imports be- I offered to immigration reform legis- gress from any Council State, or the fore it can qualify for any relief. lation calling for the U.S. Trade Rep- Governor of a Council State. Thus, if an important segment of an resentative to take this action without If the Council determines that the or- industry is being severely injured by further delay. But, it took three years igin of a cross-border trade dispute re- imports that compete directly with for a resolution, and even then, the res- sides with Canada, the Council would that segment, the businesses who com- olution was not crafted by the USTR. determine, to the best of its ability, if prise this portion of the industry do Throughout the early months of the the source of the dispute in the Cana- not have much recourse—even though PST dispute, we in the state of Maine dian Federal Government or a Cana- the industry segment in question may had enormous difficulty convincing our dian Provencal government. employ thousands of Americans and Federal trade officials that the PST The goal of this legislation is not to generate billions of dollars annually was in fact an international trade dis- create another Federal trade bureauc- for the U.S. economy. In other words, pute that warranted their attention racy. The Council will be made up of our current trade laws leave large seg- and action. We had no way of knowing, individuals nominated by the Gov- ments of an industry that serve par- whether problems similar to the PST ernors and approved by the Secretary ticular regions and markets, or have S550 CONGRESSIONAL RECORD — SENATE January 19, 1999 other distinguishing features, prac- Representative or the Congress, via a The right to seek redress in a court tically helpless in the face of sharp and resolution, to request such review. of law—the right to a jury trial—is one damaging import surges. Because the time frames in the of the most basic rights accorded to In addition, even if large industry present law for considering and provid- employees in this nation. In the Civil subdivisions could qualify for assist- ing provisional relief are so long that Rights Act of 1991, Congress expressly ance, the time frames under the Trade the damage from imports can already created this right to a jury trial for Act for expedited, or provisional, relief be done well before a decision by the employees when it voted overwhelm- for agricultural products are too long ITC is ever issued, this bill would ingly to amend Title VII of the Civil to respond in time to prevent or ade- shorten the time frame for provisional Rights Act of 1964. quately remedy injury caused by in- relief determinations by the ITC by al- The intent of the Civil Rights Act of creasing imports. At a minimum, three lowing the commission to waive, in 1991 and other civil rights and labor months must elapse before any relief certain circumstances, the act’s re- laws, such as the Age Discrimination can be provided, irrespective of the quirement that imports be monitored in Employment Act of 1967, is being damage that American businesses may by the USTR for at least 90 days. circumvented by companies that re- suffer during that time. And three And, finally, the bill expands the list quire all employees to submit to man- months is an absolute minimum. In re- of agricultural products eligible for datory, binding arbitration. In other ality, it could take substantially provisional relief to include any potato words, the company is compelling an longer to provide expedited relief. product, including processed potato agreement to arbitration without re- Mr. President, when it comes to agri- products. Under current law, only per- gard to basic civil rights of American cultural products, the problems in U.S. ishable agricultural products and cit- workers or their right to secure final trade law that I have described remain rus products are eligible to apply for resolution of such disputes in a court acute. Due to their perishable nature, expedited relief determinations. But of law under the rules of fairness and many agricultural products cannot be this narrow eligibility list unreason- due process. inventoried until imports subside or ably excludes important U.S. agri- How then does the practice of manda- the ITC grants relief—if the industry is businesses, such as our frozen french tory, binding arbitration comport with so fortunate—many months or even fry producers, from the expedited rem- the purpose and spirit of our nation’s years later. And most agricultural pro- edies available in the Trade Act. civil rights and sexual harassment ducers, who are heavily dependent on For too long, American agriculture laws? The answer is simply that it does credit each year to produce and sell a has been trying to combat sophisti- not. crop, cannot wait that long. They need cated foreign competition with the To address the growing incidents of assistance in the short-term, while the equivalent of sticks and stones. My bill compulsory arbitration, the Civil injury is occurring, if they are going to strengthens the position of American Rights Procedures Protection Act of survive an import surge. agricultural producers in the competi- 1999 amends seven civil rights statutes Also, because crops are grown during tive arena, and will help provide effec- to guarantee that a federal civil rights particular seasons and serve specific tive remedies for agricultural produc- or sexual harassment plaintiff can still markets related to production in those ers, and provide effective deterrents to seek the protection of the U.S. courts growing seasons, the agricultural in- the depredations of their competitors rather than be forced into mandatory, dustry is more prone to segmentation. from other countries. I hope other sen- binding arbitration. Specifically, this Finally, many of the agricultural in- ators with a interest in fair play for legislation affects claims raised under dustry entities that would have to file our domestic agricultural producers Title VII of the Civil Rights Act of a petition for relief under the Trade will join me I cosponsoring this impor- 1965, Section 505 of the Rehabilitation Act are really grower groups that do tant legislation. Act of 1973, the Americans with Dis- not necessarily have the financial abilities Act, Section 1977 of the Re- wherewithal to spend millions of dol- By Mr. FEINGOLD: vised Statutes, the Equal Pay Act, the lars researching, filing, and pursuing a S. 121. A bill to amend certain Fed- Family and Medical Leave Act and the petition before the ITC. eral civil rights statutes to prevent the Federal Arbitration Act (FAA). In the The bill that I have introduced today involuntary application of arbitration context of the Federal Arbitration Act, is designed to empower America’s agri- to claims that arise from unlawful em- the protections of this legislation are cultural producers to seek and obtain ployment discrimination based on race, extended to claims of unlawful dis- effective remedies for damaging import color, religion, sex, age, or disability, crimination arising under State or surges. It will make the Trade Act and for other purposes; to the Commit- local law and other Federal laws that more user friendly for American busi- tee on Health, Education, Labor, and prohibit job discrimination. nesses. Unlike the current law, which Pensions. Mr. President, this bill is not anti-ar- sets criteria for ITC consideration that f bitration, anti-mediation, or anti-al- are impossible to meet and that do not ternative dispute resolution. I have reflect the realities of today’s industry, CIVIL RIGHTS PROCEDURES long been and will remain a strong sup- my bill establishes more useful cri- PROTECTION ACT porter of ‘‘voluntary forms’’ of alter- teria. It permits the ITC to consider Mr. FEINGOLD. Mr. President, I rise native methods of dispute resolution the impacts of import surges on an im- today to introduce the Civil Rights that allow the parties to choose not to portant segment of an agricultural in- Procedures Protection Act of 1999. The proceed to litigation. Rather, this bill dustry when determining whether a do- 106th Congress will mark the fourth targets only mandatory binding arbi- mestic industry has been injured by successive Congress in which I have in- tration clauses in employment con- imports. This segment is defined as a troduced this legislation. Very simply tracts. Increasingly, working men and portion of the domestic industry lo- Mr. President, this legislation address- women are faced with the choice of ac- cated in a specific geographic area es the rapidly growing and very trou- cepting a mandatory arbitration clause whose collective production con- bling practice of employers condi- in their employment agreement or no stitutes a significant portion of the en- tioning employment or professional ad- employment at all. Despite the appear- tire domestic industry. The ITC would vancement upon their employees’ will- ance of a freely negotiated contract, also be required to consider whether ingness to submit claims of discrimina- the reality often amounts to a non-ne- this segment primarily serves the do- tion or harassment to arbitration, gotiable requirement that prospective mestic market in the specific geo- rather than pursuing them in the employees relinquish their rights to re- graphic area, and whether substantial courts. In other words, employees rais- dress in a court of law. Mandatory ar- imports are entering the area. ing claims of harassment or discrimi- bitration allows employers to tell all Rather than rely solely on an indus- nation by their employers must submit current and prospective employees in try petition to initiate an ITC review the adjudication of those claims to ar- effect, ‘‘If you want to work for us, you of whether provisional, or expedited, bitration, denying themselves any will have to check your rights at the relief deserves to be granted, my bill other remedies may exist under the door.’’ These requirements have been would permit the United States Trade laws of this Nation. referred to as ‘‘front door’’ contracts; January 19, 1999 CONGRESSIONAL RECORD — SENATE S551 that is, they require an employee to (1) by redesignating sections 16 and 17 as shall be the exclusive powers and procedures surrender certain rights in order to sections 17 and 18, respectively; and applicable to such right or such claim unless ‘‘get in the front door.’’ As a nation (2) by inserting after section 15 the follow- after such right or such claim arises the which values work and deplores dis- ing new section 16: claimant voluntarily enters into an agree- ment to enforce such right or resolve such crimination, we should not allow this ‘‘SEC. 16. EXCLUSIVITY OF POWERS AND PROCE- DURES. claim through arbitration or another proce- practice to continue. ‘‘Notwithstanding any Federal law (other dure.’’. As I noted Mr. President, the 106th than a Federal law that expressly refers to SEC. 8. AMENDMENT TO THE FAMILY AND MEDI- Congress marks the fourth successive this Act) that would otherwise modify any of CAL LEAVE ACT OF 1993. Congress in which I have introduced the powers and procedures expressly applica- Title IV of the Family and Medical Leave this important legislation. In the past ble to a right or claim arising under this Act of 1993 (29 U.S.C. 2651 et seq.) is year, we have made some advances ad- Act, such powers and procedures shall be the amended— dressing the unfair use of mandatory exclusive powers and procedures applicable (1) by redesignating section 405 as section binding arbitration clauses. Due to the to such right or such claim unless after such 406; and right or such claim arises the claimant vol- (2) by inserting after section 404 the follow- attention focused on this issue through ing new section: this legislation, a hearing in the Bank- untarily enters into an agreement to enforce such right or resolve such claim through ar- ‘‘SEC. 405. EXCLUSIVITY OF REMEDIES. ing Committee last session, and a se- bitration or another procedure.’’. ‘‘Notwithstanding any Federal law (other ries of articles and editorials in promi- SEC. 4. AMENDMENT TO THE REHABILITATION than a Federal law that expressly refers to nent periodicals, the National Associa- ACT OF 1973. this Act or a provision of subchapter V of tion of Securities Dealers (NASD) Section 505 of the Rehabilitation Act of chapter 63 of title 5, United States Code) agreed to remove the mandatory bind- 1973 (29 U.S.C. 794a) is amended by adding at that would modify any of the powers and ing arbitration clause from its Form the end the following new subsection: procedures expressly applicable to a right or claim arising under this Act or under such U–4, which all prospective securities ‘‘(c) Notwithstanding any Federal law (other than a Federal law that expressly re- subchapter such powers and procedures shall dealers sign as a condition of employ- be the exclusive powers and procedures ap- ment. The NASD’s decision to remove fers to this title) that would otherwise mod- ify any of the powers and procedures ex- plicable to such right or such claim unless the binding arbitration clause, how- pressly applicable to a right or claim arising after such right or such claim arises the ever, does not prohibit its constituent under section 501, such powers and proce- claimant voluntarily enters into an agree- organizations from including a manda- dures shall be the exclusive powers and pro- ment to enforce such right or resolve such tory, binding arbitration clause in cedures applicable to such right or such claim through arbitration or another proce- their own employment agreements, claim unless after such right or such claim dure.’’. arises the claimant voluntarily enters into SEC. 9. AMENDMENT TO TITLE 9, UNITED STATES even if it is not mandated by the indus- CODE. an agreement to enforce such right or re- try as a whole. Section 14 of title 9, United States Code, is solve such claim through arbitration or an- These changes in the securities in- amended— other procedure.’’. dustry are a positive development, but (1) by inserting ‘‘(a)’’ before ‘‘This’’; and the trend toward the use of mandatory, SEC. 5. AMENDMENT TO THE AMERICANS WITH (2) by adding at the end the following new binding arbitration clauses in many in- DISABILITIES ACT OF 1990. subsection: Section 107 of the Americans with Disabil- ‘‘(b) This chapter shall not apply with re- dustries continues. This bill restores ities Act of 1990 (42 U.S.C. 12117) is amended the ability of working men and women spect to a claim of unlawful discrimination by adding at the end the following new sub- in employment if such claim arises from dis- to pursue their rights in a venue that section: crimination based on race, color, religion, they choose and therefore restores and ‘‘(c) Notwithstanding any Federal law sex, national origin, age, or disability.’’. reinvigorates the spirit of our nation’s (other than a Federal law that expressly re- SEC. 10. APPLICATION OF AMENDMENTS. civil rights and sexual harassment laws fers to this Act) that would otherwise modify The amendments made by this Act shall in the context of these employment any of the powers and procedures expressly apply with respect to claims arising not contracts. I ask my colleagues to join applicable to a right or claim based on a vio- later than the date of enactment of this Act. me in supporting this important legis- lation described in subsection (a), such pow- ers and procedures shall be the exclusive lation. By Mr. FEINGOLD: powers and procedures applicable to such S. 122. A bill to amend title 37, Mr. President, I ask unanimous con- right or such claim unless after such right or sent that the text of this legislation be United States Code, to ensure equitable such claim arises the claimant voluntarily treatment of members of the National printed in the RECORD. enters into an agreement to enforce such There being no objection, the bill was right or resolve such claim through arbitra- Guard and the other reserve compo- ordered to be printed in the RECORD, as tion or another procedure.’’. nents of the United States with regard follows: SEC. 6. AMENDMENT TO SECTION 1977 OF THE to eligibility to receive special duty as- S. 121 REVISED STATUTES. signment pay, and for other purposes; Be it enacted by the Senate and House of Rep- Section 1977 of the Revised Statutes (42 to the Committee on Armed Services. resentatives of the United States of America in U.S.C. 1981) is amended by adding at the end f Congress assembled, the following new subsection: ‘‘(d) Notwithstanding any Federal law NATIONAL GUARD AND RESERVE SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Civil Rights (other than a Federal law that expressly re- SPECIAL DUTY ASSIGNMENT Procedures Protection Act of 1999’’. fers to this section) that would otherwise PAY EQUITY ACT OF 1999 modify any of the powers and procedures ex- SEC. 2. AMENDMENT TO TITLE VII OF THE CIVIL Mr. FEINGOLD. Mr. President, I rise RIGHTS ACT OF 1964. pressly applicable to a right or claim con- cerning making and enforcing a contract of today to introduce legislation that re- Title VII of the Civil Rights Act of 1964 (42 stores a measure of pay equity for our U.S.C. 2000e et seq.) is amended by adding at employment under this section, such powers the end the following new section: and procedures shall be the exclusive powers nation’s Guardsmen and Reservists. ‘‘SEC. 719. EXCLUSIVITY OF POWERS AND PROCE- and procedures applicable to such right or The men and women who serve in the DURES. such claim unless after such right or such Guard and Reserves are the corner- ‘‘Notwithstanding any Federal law (other claim arises the claimant voluntarily enters stones of our national defense and do- than a Federal law that expressly refers to into an agreement to enforce such right or mestic infrastructure and deserve more this title) that would otherwise modify any resolve such claim through arbitration or another procedure.’’. than a pat on the back. of the powers and procedures expressly appli- Mr. President, as I’m certain my col- cable to a right or claim arising under this SEC. 7. AMENDMENT TO THE EQUAL PAY RE- title, such powers and procedures shall be QUIREMENT UNDER THE FAIR leagues are well aware, the Guard and the exclusive powers and procedures applica- LABOR STANDARDS ACT OF 1938. Reserve are integral parts of overseas ble to such right or such claim unless after Section 6(d) of the Fair Labor Standards missions, including recent and on- such right or such claim arises the claimant Act of 1938 (29 U.S.C. 206(d)) is amended by going missions to Iraq and Bosnia. Ac- voluntarily enters into an agreement to en- adding at the end the following new para- cording to statements by DOD officials, force such right or resolve such claim graph: guardsmen and reservists will continue through arbitration or another procedure.’’. ‘‘(5) Notwithstanding any Federal law to play an increasingly important role (other than a Federal law that expressly re- SEC. 3. AMENDMENT TO THE AGE DISCRIMINA- in national defense strategy. The Na- TION IN EMPLOYMENT ACT OF 1967. fers to this Act) that would otherwise modify The Age Discrimination in Employment any of the powers and procedures expressly tional Guard and Reserves deserve the Act of 1967 (29 U.S.C. 621 et seq.) is applicable to a right or claim arising under full support they need to carry out amended— this subsection, such powers and procedures their duties. S552 CONGRESSIONAL RECORD — SENATE January 19, 1999 National Guard and Reserve members have tremendous reservations about Mr. President, it should come as no are becoming increasingly relied upon spending hikes of this magnitude, but surprise that we have failed to invest to shoulder more of the burden of mili- have no such reservations in support- fully in the National Guard. It’s no sur- tary operations. We need to com- ing this nation’s citizen-soldiers. The prise because it’s the best bargain in pensate our citizen-soldiers for this in- National Guard and Reserve deserve the Defense Department. DOD has creasing reliance on the Reserve forces. pay and benefit equity and that means never been known as a frugal depart- Mr. President, this boils down to an paying them what they’re worth. ment. From $436 hammers to $640 toilet issue of fairness. Mr. President, according to the Na- seats to $2 billion bombers that don’t Mr. President, my bill would correct tional Guard, shortfalls in the oper- work and the department doesn’t seem special duty assignment pay inequities ations and maintenance account com- to want to use, the Department of De- between the Reserve components and promise the Guard’s readiness levels, fense has a storied history of wasting the active duty. These inequities capabilities, force structure, and end our tax dollars. Here is an opportunity should be corrected to take into ac- strength. Failing to fully support these to spend defense dollars on something count the National Guard and Re- vital areas will have both direct and in- that works, that is worthwhile, and en- serves’ increased role in our national direct effects. The shortfall puts the joys broad support on both sides of the security, especially on the front lines. Guard’s personnel, schools, training, aisle. full-time support, and retention and re- Given the increased use of the Reserve The National Guard fits the bill. Ac- cruitment at risk. Perhaps more im- components and DOD’s increased reli- cording to a National Guard study, the portantly, however, it erodes the mo- ance on them, Reservists deserve fair average cost to train and equip an ac- pay. My bill states that a Reservist rale of our citizen-soldiers. Over these past years, the Adminis- tive duty soldier is $73,000 per year, who is entitled to basic pay and is per- tration has increasingly called on the while it costs $17,000 per year to train forming special duty be paid special Guard and Reserves to handle wider- and equip a National Guard soldier. duty assignment pay. ranging tasks, while simultaneously of- The cost of maintaining Army Na- Mr. President, right now, Reservists fering defense budgets with shortfalls tional Guard units is just 23 percent of are getting shortchanged despite the of hundreds of millions of dollars. the cost of maintaining Active Army vital role they play in our national de- These shortfalls have increasingly units. It is time for the Pentagon to fense. The special duty assignment pay greater effect given the guard and re- quit complaining about lack of funding program ensures readiness by com- serves’ increased operations burdens. and begin using their money more pensating specific soldiers who are as- This is a result of new missions, in- wisely and efficiently. signed to duty positions that demand creased deployments, and training re- Mr. President, I have had the oppor- special training and extraordinary ef- quirements. tunity to see some of these soldiers off fort to maintain a level of satisfactory Earlier this month, Charles Cragin, as they embarked on these missions performance. The program, as it stands the assistant secretary of defense for and have welcomed them home upon now, effectively reduces the ability of reserve affairs, presented DOD’s posi- their return, and I have been struck by the National Guard and Reserve to re- tion with regard to the department’s the courage and professionalism they tain highly dedicated and specialized working relationship with the National display. Guardsmen and Reservists soldiers. Guard and Reserve. He stated that all have been vital on overseas missions, The special duty assignment pay pro- branches of the military reserves will and here at home. In Wisconsin, the gram provides an additional monthly be called upon more frequently as the State Guard provides vital support dur- financial incentive paid to enlisted sol- nation pares back the number of sol- ing state emergencies, including floods, diers and airmen who are required to diers on active duty. This has clearly ice storms, and train derailments. perform extremely demanding duties been DOD’s policy for the past few Mr. President, we have a duty to that require an unusual degree of re- years, but Mr. Cragin went a little fur- honor the service of our National sponsibility. These special duty assign- ther by stating that the reserve units Guardsmen and Reservists. One way to ments include certain command ser- can no longer be considered ‘‘weekend do that is to adequately compensate geants major, guidance counselors, re- warriors’’ but primary components of them for their service. I hope my col- tention non-commissioned officers national defense. leagues agree that our citizen-soldiers (NCO’s), drill sergeants, and members Mr. President, in the past, DOD serve an invaluable role in our national of the Special Forces. These soldiers, viewed the armed forces as a two- defense, and their paychecks should re- however, do not receive special duty pronged system, with active-duty flect their contribution. assignment pay while in an IDT status troops being the primary prong, rein- Mr. President, I ask unanimous con- (drill weekends). forced by the Reserve component. That sent that the bill be printed in the Between fiscal years 1998 and 1999, strategy has changed with the RECORD. spending for the program was cut by downsizing of active forces. Defense of- There being no objection, the bill was $1.6 million, which has placed a fiscal ficials now see reserves as part of the ordered to be printed in the RECORD, as restraint on the number of personnel ‘‘total force’’ of the military. follows: the Army National Guard is able to The National Guard and Reserves S. 122 provide for under this program. These will be called more frequently to active soldiers deserve better. duty for domestic support roles and Be it enacted by the Senate and House of Rep- Mr. President, this bill is paid for by abroad in various peace-keeping ef- resentatives of the United States of America in Congress assembled, terminating the ineffective, unneces- forts. They will also be vital players on sary, outdated Cold War relic known as special teams trained to deal with SECTION 1. SHORT TITLE. Project ELF, or the Extremely Low weapons of mass destruction deployed This Act may be cited as the ‘‘Guard and Frequency Communication System, Reserve Special Duty Assignment Pay Eq- within our own borders. According to uity Act of 1999’’. which costs approximately $12 million many military experts, this represents SEC. 2. ENTITLEMENT OF RESERVES NOT ON AC- per year. a more salient threat to the United TIVE DUTY TO RECEIVE SPECIAL Mr. President, the differences in pay States than the threat of a ballistic DUTY ASSIGNMENT PAY. and benefits are particularly disturbing missile attack that many of my col- (a) AUTHORITY.—Section 307(a) of title 37, since National Guard and Reserve leagues have spent so much time ad- United States Code, is amended by inserting members give up their civilian salaries dressing. after ‘‘is entitled to basic pay’’ in the first during the time they are called up or As I’m sure my colleagues know by sentence the following: ‘‘, or is entitled to volunteer for active duty. now, the Army National Guard rep- compensation under section 206 of this title As I’m sure all my colleagues have resents a full 34 percent of total army in the case of a member of a reserve compo- nent not on active duty,’’. heard, the President will propose an forces, including 55 percent of combat (b) EFFECTIVE DATE.—The amendment enormous boost in defense spending divisions and brigades, 46 percent of made by subsection (a) shall take effect on over the next six years; an increase of combat support, and 25 percent of com- the first day of the first month that begins $12 billion for fiscal year 2000 and about bat service support, yet receives just on or after the date of the enactment of this $110 billion over the next six years. I 9.5 percent of Army funds. Act. January 19, 1999 CONGRESSIONAL RECORD — SENATE S553 SEC. 3. OFFSET OF COST BY TERMINATION OF to achieve this objective, and explicitly I ask unanimous consent that the THE OPERATION OF THE EX- codifies both prior recommendations full text of this measure be printed in TREMELY LOW FREQUENCY COMMU- NICATION SYSTEM OF THE NAVY. made by the Administration and the the RECORD. (a) TERMINATION REQUIRED.—The Secretary TVA Chairman. There being no objection, the bill was of the Navy shall terminate the operation of We should terminate TVA’s appro- ordered to be printed in the RECORD, as the Extremely Low Frequency Communica- priated programs because there are lin- follows: tion System of the Navy. gering concerns, brought to light in a S. 123 (b) MAINTENANCE OF INFRASTRUCTURE.—The 1993 Congressional Budget Office (CBO) Secretary shall maintain the infrastructure Be it enacted by the Senate and House of Rep- report, that non-power program funds resentatives of the United States of America in necessary for resuming operation of the Ex- subsidize activities that should be paid tremely Low Frequency Communication Congress assembled, System. for by non-federal interests. When I ran SECTION 1. TENNESSEE VALLEY AUTHORITY. (c) EXCESS SAVINGS TO BE CREDITED TO for the Senate in 1992, I developed an (a) DISCONTINUANCE OF APPROPRIATIONS.— DEFICIT REDUCTION.—To the extent, if any, 82+ point plan to eliminate the federal Section 27 of the Tennessee Valley Authority that the amount of expenditures forgone for deficit and have continued to work on Act of 1933 (16 U.S.C. 831z), is amended by in- a fiscal year for the operation of the Ex- the implementation of that plan since serting ‘‘for fiscal years through fiscal year tremely Low Frequency Communication that time. That plan includes a number 2000’’ before the period. System by reason of this section exceeds the of elements in the natural resource (b) PLAN.—Not later than June 1, 1999, the Director of the Office of Management and increased cost of paying special duty assign- area, including the termination of ment pay in that fiscal year as a result of Budget shall develop and submit a plan to TVA’s appropriations-funded programs. Congress that— the amendment made by section 2, the excess In its 1993 report, CBO focused on two amount shall be credited to budget deficit (1) reviews the non-power activities con- reduction for that fiscal year. programs: the TVA Stewardship Pro- ducted by the Tennessee Valley Authority gram and the Environmental Research using appropriated funds; and By Mr. FEINGOLD: Center, which no longer receives fed- (2) determines whether the non-power ac- S. 123. A bill to phase out Federal eral funds. Stewardship activities re- tivities performed by the Tennessee Valley ceive the largest share of TVA’s appro- Authority can be adequately performed by funding of the Tennessee Valley Au- other federal agencies, and if so, describes thority; to the Committee on Environ- priated funds. The funds are used for the resources needed by other agencies to ment and Public Works. dam repair and maintenance activities. perform such activities; and TENNESSEE VALLEY AUTHORITY According to 1995 testimony provided (3) describes on-going federal interest in Mr. FEINGOLD. Mr. President, today by TVA before the House Subcommit- the continuation of the non-power activities I am introducing legislation, similar to tee on Energy and Water Appropria- currently performed by the Tennessee Valley tions, when TVA repairs a dam it pays Authority; and bills I offered in the two previous Con- (4) recommends any legislation that may gresses, to terminate funding for the 70%, on average, of repair costs with appropriated dollars and covers the re- be appropriate to carry out the objectives of non-power programs of the Tennessee this Act. Valley Authority (TVA). In FY 99, after maining 30% with funds collected from terminating funding for these pro- electricity ratepayers. By Mr. FEINGOLD: This practice of charging a portion of grams in the FY 99 Energy and Water S. 124. A bill to amend the Agricul- dam repair costs to the taxpayer, CBO Appropriations bill, the Congress re- tural Adjustment Act to prohibit the highlighted, amounts to a significant vived funding for these programs in the Secretary of Agriculture from basing subsidy. If TVA were a private utility, Omnibus Appropriations measure. minimum prices for Class I milk on the and it made modifications to a dam or The TVA was created in 1933 as a gov- distance or transportation costs from performed routine dredging, the rate- ernment-owned corporation for the any location that is not within a mar- payers would pay for all of the costs as- unified development of a river basin keting area, except under certain cir- sociated with that activity. cumstances, and for other purposes; to comprised of parts of seven states. Despite CBO’s charges that a portion the Committee on Agriculture, Nutri- Those activities included the construc- of the Stewardship funds may be subsi- tion, and Forestry. tion of an extensive power system, for dizing the power program, I have heard which the region is now famous, and from a number of my constituents who ABOLISHING THE ANTI-EAU CLAIRE RULE regional development or ‘‘non-power’’ are concerned that some of the TVA’s Mr. FEINGOLD. Mr. President, I rise programs. TVA’s responsibilities in the non-power activities are critical fed- today to offer a measure which will non-power programs include maintain- eral functions. In order to be certain serve as a first step towards eliminat- ing its system of dams, reservoirs and that Congress would be acting properly ing the inequities borne by the dairy navigation facilities, and managing to terminate certain functions while farmers of Wisconsin and the upper TVA-held lands. In addition, TVA pro- preserving others under TVA or trans- Midwest under the Federal Milk Mar- vides recreational programs, makes ferring them to other federal agencies, keting Order system. The Federal Milk economic development grants to com- this bill directs OMB to study TVA’s Marketing Order system, created near- munities, promotes public use of its non-power programs. That study, ly 60 years ago, establishes minimum land and water resources, and operates which must be completed by June 1, prices for milk paid to producers an Environmental Research Center. 1999, requires OMB to evaluate TVA’s throughout various marketing areas in Only the TVA power programs are in- non-power programs, describe which of the U.S. For sixty years, this system tended to be self-supporting, by relying those are necessary federal functions, has discriminated against producers in on TVA utility customers to foot the and recommend whether those which the Upper Midwest by awarding a high bill. The cost of these ‘‘non-power’’ are federal functions should be per- price to dairy farmers in proportion to programs, on the other hand, is covered formed by TVA or by another agency. the distance of their farms from Eau by appropriated taxpayer funds. That way, Mr. President, Congress will Claire, Wisconsin. This legislation terminates funding be fully informed before making a final This legislation is very simple. It for all appropriated programs of the decision to terminate these funds. identifies the single most harmful and TVA after FY 2000. While I understand Again, while I understand the impor- unjust feature of the current system, the role that TVA has played in our tant role that TVA played in the devel- and corrects it. history, I also know that we face tre- opment of the Tennessee Valley, many Under the current archaic law, the mendous federal budget pressure to re- other areas of the country have become price for fluid milk increases at a rate duce spending in many areas. I believe more creative in federal and state fi- of 21 cents per hundred miles from Eau that TVA’s discretionary funds should nancing arrangements to address re- Claire, Wisconsin, even though most be on the table, and that Congress gional concerns. Specifically, in those milk marketing orders do not receive should act, in accordance with this leg- areas where there may be excesses any milk from Wisconsin. Fluid milk islation, to put the TVA appropriated within TVA, I believe we can do better prices, as a result, are $2.98 higher in programs on a glide path toward de- to curb subsidies and eliminate the Florida than in Wisconsin and over pendence on sources of funds other burden on taxpayers without com- $1.00 higher in Texas. This method of than appropriated funds. This legisla- pletely eliminating the TVA, as some pricing fluid milk is not only arbitrary, tion is a reasonable phased-in approach in the other body have suggested. but also out of date and out of sync S554 CONGRESSIONAL RECORD — SENATE January 19, 1999 with the market conditions of 1999. It The regions which would gain and lose deliberating possible changes to the is time for this method of pricing— in this scenario illustrate the discrimi- current system, one of the options known as single-basing-point pricing— nation inherent to the current system. being considered maintains this debili- to come to an end. Economic analyses show that farm rev- tating single-basing-point pricing sys- The bill I introduce today will pro- enues in a market undisturbed by Fed- tem. This bill is the beginning of re- hibit the Secretary of Agriculture from eral Orders would actually increase in form. It identifies the one change that using distance or transportation costs the Upper Midwest and fall in most is absolutely necessary in any out- from any location as the basis for pric- other milk-producing regions. come—the elimination of single-bas- ing milk, unless significant quantities The data clearly show that Upper ing-point pricing. of milk are actually transported from Midwest producers are hurt by distor- I urge the Secretary of Agriculture that location into the recipient mar- tions built into a single-basing-point to do the right thing and bring reform ket. The Secretary will have to comply system that prevent them from com- to this out-dated system. No proposal with the statutory requirement that peting effectively in a national mar- is reform without this important pol- supply and demand factors be consid- ket. icy change. ered as specified in the Agricultural While this system has been around Mr. President, I ask unanimous con- Marketing Agreement Act when set- since 1937, the practice of basing fluid sent that the bill be printed in the ting milk prices in marketing orders. milk price differentials on the distance RECORD. The fact remains that single-basing- from Eau Claire was formalized in the There being no objection, the bill was point pricing simply cannot be justi- 1960’s, when the Upper Midwest argu- ordered to be printed in the RECORD, as fied based on supply and demand for ably was the primary reserve for addi- follows: milk both in local and national mar- tional supplies of milk. The idea was to S. 124 kets. encourage local supplies of fluid milk Be it enacted by the Senate and House of Rep- This bill also requires the Secretary in areas of the country that did not resentatives of the United States of America in to report to Congress on specifically traditionally produce enough fluid Congress assembled, SECTION 1. LOCATION ADJUSTMENTS FOR MINI- which criteria are used to set milk milk to meet their own needs. MUM PRICES FOR CLASS I MILK. prices. Finally, the Secretary will have Mr. President, that is no longer the Section 8c(5) of the Agricultural Adjust- to certify to Congress that the criteria case. The Upper Midwest is neither the ment Act (7 U.S.C. 608c(5)), reenacted with used by the Department do not in any lowest cost production area nor a pri- amendments by the Agricultural Marketing way attempt to circumvent the prohi- mary source of reserve supplies of Agreement Act of 1937, is amended— bition on using distance or transpor- milk. In many of the markets with (1) in paragraph (A)— tation cost as basis for pricing milk. higher fluid milk differentials, milk is (A) in clause (3) of the second sentence, by This one change is so crucial to produced efficiently, and in some cases, inserting after ‘‘the locations’’ the following: ‘‘within a marketing area subject to the Upper Midwest producers, because the at lower cost than the upper Midwest. order’’; and current system has penalized them for Unfortunately, the prices didn’t adjust (B) by striking the last 2 sentences and in- many years. By providing disparate with changing economic conditions, serting the following: ‘‘Notwithstanding sub- profits for producers in other parts of most notably the shift of the dairy in- section (18) or any other provision of law, the country and creating artificial eco- dustry away from the Upper Midwest when fixing minimum prices for milk of the nomic incentives for milk production, and towards the Southwest, specifi- highest use classification in a marketing Wisconsin producers have seen national cally California, which now leads the area subject to an order under this sub- surpluses rise, and milk prices fall. nation in milk production. section, the Secretary may not, directly or indirectly, base the prices on the distance Rather than providing adequate sup- Fluid milk prices should have been from, or all or part of the costs incurred to plies of fluid milk in some parts of the lowered to reflect that trend. Instead, transport milk to or from, any location that country, the prices have led to excess in 1985, the prices were increased for is not within the marketing area subject to production. markets distant from Eau Claire. the order, unless milk from the location con- The prices have provided production USDA has refused to use the adminis- stitutes at least 50 percent of the total sup- incentives beyond those needed to en- trative authority provided by Congress ply of milk of the highest use classification sure a local supply of fluid milk in to make the appropriate adjustments in the marketing area. The Secretary shall some regions, leading to an increase in to reflect economic realities. They con- report to the Committee on Agriculture of manufactured products in those mar- the House of Representatives and the Com- tinue to stand behind single-basing- mittee on Agriculture, Nutrition, and For- keting orders. Those manufactured point pricing. estry of the Senate on the criteria that are products directly compete with Wis- The result has been a decline in the used as the basis for the minimum prices re- consin’s processed products, eroding Upper Midwest dairy industry, not be- ferred to in the preceding sentence, includ- our markets and driving national cause they can’t produce a product ing a certification that the minimum prices prices down. that can compete in the market place, are made in accordance with the preceding The perverse nature of this system is but because the system discriminates sentence.’’; and further illustrated by the fact that against them. Since 1980, Wisconsin has (2) in paragraph (B)(c), by inserting after since 1995 some regions of the U.S., no- lost over 15,000 dairy farmers. Today, ‘‘the locations’’ the following: ‘‘within a marketing area subject to the order’’. tably the Central states and the South- Wisconsin loses dairy farmers at a rate west, are producing so much milk that of 5 per day. The Upper Midwest, with By Mr. FEINGOLD (for himself they are actually shipping fluid milk the lowest fluid milk prices, is shrink- and Mr. MCCAIN): north to the Upper Midwest. The high ing as a dairy region despite the dairy- S. 125. A bill to reduce the number of fluid milk prices have generated so friendly climate of the region. Other executive branch political appointees; much excess production, that these regions with higher fluid milk prices to the Committee on Governmental Af- markets distant from Eau Claire are are growing rapidly. fairs. now encroaching upon not only our In an unregulated market with a f manufactured markets, but also our level playing field, these shifts in pro- markets for fluid milk, further eroding duction might be fair. But in a market REDUCING THE NUMBER OF EXEC- prices in Wisconsin. where the government is setting the UTIVE BRANCH POLITICAL AP- The market distorting effects of the prices and providing that artificial ad- POINTMENTS fluid price differentials in federal or- vantage to regions outside the Upper Mr. FEINGOLD. Mr. President, I am ders are manifest in the Congressional Midwest, the current system is uncon- pleased to be joined by my good friend Budget Office estimate that eliminat- scionable. the senior Senator from Arizona (Mr. ing the orders would save $669 million This bill is a first step in reforming MCCAIN) in introducing legislation to over five years. Government outlays federal orders by prohibiting a grossly reduce the number of presidential po- would fall, CBO concludes, because pro- unfair practice that should have been litical appointees. Specifically, the bill duction would fall in response to lower dropped long ago. Although I under- caps the number of political appointees milk prices and there would be fewer stand that, because of mandates in the at 2,000. The Congressional Budget Of- government purchases of surplus milk. 1996 Farm Bill, the USDA is currently fice (CBO) estimates this measure January 19, 1999 CONGRESSIONAL RECORD — SENATE S555 would save $333 million over the next to important resources, while doing tion, however, is not simply to propose five years. nothing to reduce bureaucratic impedi- measure that impact someone else. The bill is based on the recommenda- ments. As reduce the number of government tions of a number of distinguished pan- In commenting on this problem, au- employees, streamline agencies, and els, including most recently, the Twen- thor Paul Light noted, ‘‘As this sedi- make government more responsive, we tieth Century Fund Task Force on the ment has thickened over the decades, should also right size the number of po- Presidential Appointment Process. The presidents have grown increasingly dis- litical appointees, ensuring a sufficient task force findings, released last fall, tant from the lines of government, and number to implement the policies of are only the latest in a long line of rec- the front lines from them.’’ Light any Administration without burdening ommendations that we reduce the added that ‘‘Presidential leadership, the Federal budget with unnecessary, number of political appointees in the therefore, may reside in stripping gov- possibly counterproductive political Executive Branch. For many years, the ernment of the barriers to doing its job jobs. proposal has been included in CBO’s an- effectively. . .’’ Mr. President, when I ran for the U.S. nual publication Reducing the Deficit: The Volcker Commission also as- Senate in 1992, I developed an 82 point Spending and Revenue Options, and it serted that this thickening barrier of plan to reduce the Federal deficit and was one of the central recommenda- temporary appointees between the achieve a balanced budget. Since that tions of the National Commission on President and career officials can un- time, I have continued to work toward the Public Service, chaired by former dermine development of a proficient enactment of many of the provisions of Federal Reserve Board Chairman Paul civil service by discouraging talented that plan and have added new provi- Volcker. individuals from remaining in govern- sions on a regular basis. Mr. President, this proposal is also ment service or even pursuing a career The legislation I am introducing consistent with the recommendations in government in the first place. today reflects one of the points in- of the Vice President’s National Per- Mr. President, former Attorney Gen- cluded on the original 82 point plan formance Review, which called for re- eral Elliot Richardson put it well when calling for streamlining various federal ductions in the number of federal man- he noted: agencies and reducing agency overhead agers and supervisors, arguing that But a White House personnel assistant sees costs. I am pleased to have this oppor- ‘‘over-control and micro management’’ the position of deputy assistant secretary as tunity to continue to work toward im- not only ‘‘stifle the creativity of line a fourth-echelon slot. In his eyes that makes plementation of the elements of the it an ideal reward for a fourth-echelon politi- managers and workers, they consume deficit reduction plan. billions per year in salary, benefits, cal type—a campaign advance man, or a re- gional political organizer. For a senior civil Mr. President, I ask unanimous con- and administrative costs.’’ sent that the bill be printed in the Those sentiments were also expressed servant, it’s irksome to see a position one RECORD. in the 1989 report of the Volcker Com- has spent 20 or 30 years preparing for pre- empted by an outsider who doesn’t know the There being no objection, the bill was mission, when it argued the growing difference between an audit exception and an ordered to be printed in the RECORD, as number of presidential appointees may authorizing bill. follows: ‘‘actually undermine effective presi- Mr. President, the report of the dential control of the executive S. 125 Twentieth Century Fund Task Force branch.’’ The Volcker Commission rec- Be it enacted by the Senate and House of Rep- on the Presidential Appointment Proc- ommended limiting the number of po- resentatives of the United States of America in ess identified another problem aggra- litical appointees to 2,000, as this legis- Congress assembled, vated by the mushrooming number of SECTION 1. REDUCTION IN NUMBER OF POLITI- lation does. CAL APPOINTEES. Mr. President, it is essential that any political appointees, namely the in- creasingly lengthy process of filling (a) DEFINITION.—In this section, the term Administration be able to implement ‘‘political appointee’’ means any individual the policies that brought it into office these thousands of positions. As the Task Force reported, both President who— in the first place. Government must be (1) is employed in a position on the execu- responsive to the priorities of the elec- Bush and President Clinton were into tive schedule under sections 5312 through torate. But as the Volcker Commission their presidencies for many months be- 5316 of title 5, United States Code; noted, the great increase in the number fore their leadership teams were fully (2) is a limited term appointee, limited of political appointees in recent years in place. The Task Force noted that emergency appointee, or noncareer ap- has not made government more effec- ‘‘on average, appointees in both admin- pointee in the senior executive service as de- istrations were confirmed more than fined under section 3132(a) (5), (6), and (7) of tive or more responsive to political title 5, United States Code, respectively; or leadership. eight months after the inauguration— one-sixth of an entire presidential (3) is employed in a position in the execu- Between 1980 and 1992, the ranks of tive branch of the Government of a confiden- political appointees grew 17 percent, term.’’ By contrast, the report noted tial or policy-determining character under over three times as fast as the total that in the presidential transition of Schedule C of subpart C of part 213 of title 5 number of Executive Branch employees 1960, ‘‘Kennedy appointees were con- of the Code of Federal Regulations. and looking back to 1960 their growth firmed, on average, two and a half (b) LIMITATION.—The President, acting is even more dramatic. In his recently months after the inauguration.’’ through the Office of Management and Budg- published book ‘‘Thickening Govern- In addition to leaving vacancies et and the Office of Personnel Management, ment: Federal Government and the Dif- among key leadership positions in gov- shall take such actions as necessary (includ- ing reduction in force actions under proce- fusion of Accountability,’’ author Paul ernment, the appointment process delays can have a detrimental effect on dures established under section 3595 of title Light reports a startling 430% increase 5, United States Code) to ensure that the in the number of political appointees potential appointees. The Twentieth total number of political appointees shall and senior executives in Federal gov- Century Fund Task Force reported not exceed 2,000. ernment between 1960 and 1992. that appointees can ‘‘wait for months (c) EFFECTIVE DATE.—This section shall In recommending a cap on political on end in a limbo of uncertainty and take effect on October 1, 1999. appointees, the Volcker Commission awkward transition from the private to report noted that the large number of the public sector.’’ By Mr. FEINGOLD: presidential appointees simply cannot Mr. President, there have been some S. 126. A bill to terminate the Uni- be managed effectively by any Presi- modest reductions in the number of po- formed Services University of the dent or White House. The Commission litical appointees in recent years, but Health Sciences; to the Committee on argued that this lack of control and po- further reductions are needed. Armed Services. litical focus ‘‘may actually dilute the The sacrifices that deficit reduction TERMINATING THE UNIFORMED SERVICES President’s ability to develop and en- efforts require must be spread among UNIVERSITY OF THE HEALTH SCIENCES force a coherent, coordinated program all of us. This measure requires us to Mr. FEINGOLD. Mr. President, I am and to hold cabinet secretaries ac- bite the bullet and impose limitations today introducing legislation termi- countable.’’ upon political appointments that both nating the Uniformed Services Univer- Adding organizational layers of polit- parties may well wish to retain. The sity of the Health Sciences (USUHS), a ical appointees can also restrict access test of commitment to deficit reduc- medical school run by the Department S556 CONGRESSIONAL RECORD — SENATE January 19, 1999 of Defense. The measure is one I pro- relying primarily on these other (b) EFFECTIVE DATES.— posed when I ran for the U.S. Senate, sources has not compromised the abil- (1) TERMINATION.—The termination of the and was part of a larger, 82 point plan ity of military physicians to meet the Uniformed Services University of the Health to reduce the Federal budget deficit. needs of the Pentagon. According to Sciences under subsection (a)(1) shall take effect on the day after the date of the grad- The most recent estimates of the Con- the Office of Management and Budget, uation from the university of the last class gressional Budget Office (CBO) project of the approximately 2,000 physicians of students that enrolled in such university that terminating the school would save serving in Desert Storm, only 103, on or before the date of the enactment of $273 million over the next five years, about 5%, were USUHS trained. this Act. and when completely phased-out, Mr. President, let me conclude by (2) AMENDMENTS.—The amendments made would generate $450 million in savings recognizing that USUHS has some by subsection (a)(2) shall take effect on the over five years. dedicated supporters in the U.S. Sen- date of the enactment of this Act, except USUHS was created in 1972 to meet ate, and I realize that there are legiti- that the provisions of chapter 104 of title 10, an expected shortage of military medi- mate arguments that those supporters United States Code, as in effect on the day have made in defense of this institu- before such date, shall continue to apply cal personnel. Today, however, USUHS with respect to the Uniformed Services Uni- accounts for only a small fraction of tion. The problem, however, is that the versity of the Health Sciences until the ter- the military’s new physicians, less federal government can no longer af- mination of the university under this sec- than 12 percent in 1994 according to ford to continue every program that tion. CBO. This contrasts dramatically with provides some useful function. the military’s scholarship program This is especially true in the area of By Mr. FEINGOLD; which provided over 80 percent of the defense spending. Many in this body S. 127. A bill to amend the Agricul- military’s new physicians in that year. argue that the Defense budget is too tural Market Transition Act to pro- Mr. President, what is even more tight, that a significant increase in hibit the Secretary of Agriculture from troubling is that USUHS is also the spending is needed to address concerns including any storage charges in the single most costly source of new physi- about shortfalls in recruitment and re- calculation of loan deficiency pay- cians for the military. CBO reports tention, maintenance backlogs, and ments or loans made to producers for that based on figures from 1995, each other indicators of a lower level of loan commodities; to the Committee USUHS trained physician costs the readiness. on Agriculture, Nutrition, and For- Mr. President, the debate over our military $615,000. By comparison, the estry. level of readiness is certainly impor- scholarship program cost about $125,000 COTTON STORAGE SUBSIDY per doctor, with other sources provid- tant, and it may well be that more De- Mr. FEINGOLD. Mr. President, today ing new physicians at a cost of $60,000. fense funding should be channeled to I rise to introduce legislation, origi- As CBO noted in their Spending and these specific areas of concern. But before advocates of an increased nally introduced in the 105th Congress. Revenue Options publication, even ad- Defense budget ask taxpayers to foot This measure will give relief to the justing for the lengthier service com- the bill for hundreds of billions more in taxpayers of this country, who now pay mitment required of USUHS trained spending, they owe it to those tax- millions every year to provide cotton physicians, the cost of training them is payers to trim Defense programs that producers with an expensive and unnec- still higher than that of training physi- are not justified. essary perk no other farmer enjoys. cians from other sources, an assess- In the face of our staggering national Each year, the Federal Government’s ment shared by the Pentagon itself. In- debt and annual deficits, we must deed, CBO’s estimate of the savings Agriculture Department pays millions prioritize and eliminate programs that of dollars in storage costs for cotton generated by this measure also in- can no longer be sustained with limited cludes the cost of obtaining physicians farmers. Last year, this program pro- federal dollars, or where a more cost- vided more than $23 million to store from other sources. effective means of fulfilling those func- The House of Representatives has the cotton crop of participating farm- tions can be substituted. The future of voted to terminate this program on ers. My measure puts all commodities USUHS continues to be debated pre- several occasions, and the Vice Presi- on a more equal footing by eliminating cisely because in these times of budget dent’s National Performance Review the storage subsidy for cotton, the only restraint it does not appear to pass the joined others, ranging from the Grace commodity whose producers still enjoy higher threshold tests which must be Commission to the CBO, in raising the this privilege. applied to all federal spending pro- question of whether this medical Mr. President, prior to the passage of grams. school, which graduated its first class the 1996 Freedom to Farm bill, farmers Mr. President, I ask unanimous con- producing wheat and feed grains relied in 1980, should be closed because it is so sent that the text of the legislation be much more costly than alternative heavily on the Farmer Owned Reserve printed in the RECORD. Program to assist them in repaying sources of physicians for the military. There being no objection, the bill was Mr. President, the real issue we must their overdue loans when times were ordered to be printed in the RECORD, as tough. They would roll their non-re- address is whether USUHS is essential follows: to the needs of today’s military struc- course loans into the Farmer Owned S. 126 ture, or if we can do without this cost- Reserve Program which would allow Be it enacted by the Senate and House of Rep- them the opportunity to pay back their ly program. The proponents of USUHS resentatives of the United States of America in frequently cite the higher retention Congress assembled, loan, without interest, and also get as- rates of USUHS graduates over physi- SECTION 1. SHORT TITLE. sistance in paying storage costs. Al- cians obtained from other sources as a This Act may be cited as the ‘‘Uniformed though cotton producers were not eligi- justification for continuation of this Services University of the Health Sciences ble to participate in that particular program, but while a greater percent- Termination and Deficit Reduction Act of program, they were offered a similar age of USUHS trained physicians may 1999’’. subsidy and other perks through the remain in the military longer than SEC. 2. TERMINATION OF THE UNIFORMED SERV- cotton program. Those were the days of ICES UNIVERSITY OF THE HEALTH those from other sources, the Pentagon SCIENCES. heavy agriculture subsidization, when indicates that the alternative sources (a) TERMINATION.— the government dictated prices, pro- already provide an appropriate mix of (1) IN GENERAL.—The Uniformed Services vided price supports, and more often retention rates. Testimony by the De- University of the Health Sciences is termi- than not, had over-surpluses of wheat, partment of Defense before the Sub- nated. corn and other feed grains—driving committee on Force Requirements and (2) CONFORMING AMENDMENTS.— down domestic prices. The 1996 Farm Personnel noted that the military’s (A) Chapter 104 of title 10, United States Bill, sought to bring farm policy in line Code, is repealed. with a realistic agricultural and eco- scholarship program meets the reten- (B) The table of chapters at the beginning tion needs of the services. of subtitle A of such title, and at the begin- nomic view, that the agriculture indus- And while USUHS only provides a ning of part III of such subtitle, are each try must be more market oriented— small fraction of the military’s new amended by striking out the item relating to must not rely so much on government physicians, it is important to note that chapter 104. price interference. January 19, 1999 CONGRESSIONAL RECORD — SENATE S557 Mr. President, although the Farm S. 127 It was designed at a time when the Bill was successful in ridding agri- Be it enacted by the Senate and House of Rep- threat and consequences of detection culture policy of much of the weight of resentatives of the United States of America in to our submarines was real. But ELF government intrusion that burdened it Congress assembled, was never developed to an effective ca- for years, there are still hidden sub- SECTION 1. STORAGE CHARGES FOR LOAN COM- pability, and the demise of the Soviet MODITIES. sidies costing taxpayers billions. This Subtitle C of the Agricultural Market threat has certainly rendered it unnec- legislation would prevent USDA from Transition Act (7 U.S.C. 7231 et seq.) is essary. factoring cotton industry storage costs amended by adding at the end the following: In fact, Mr. President, the submarine into Marketing Loan Program calcula- ‘‘SEC. 138. STORAGE CHARGES FOR LOAN COM- capabilities of our potential adversar- tions. This costly and unnecessary ben- MODITIES. ies have noticeably deteriorated or re- efit is bestowed on the producers of no ‘‘In calculating the amount of a loan defi- main far behind those of our Navy. The other commodity. ciency payment or loan made to a producer primary mission of our attack sub- Farmers, except those who produce for a loan commodity under this subtitle, the Secretary may not include any storage marines was to fight the heart of the cotton, are required to pay storage cost charges incurred by the producer in connec- Soviet navy, its attack submarine through the maturity date of their sup- tion with the loan commodity.’’. force. This mission included hunting port loans. Producers must prepay or down Soviet submarines. Due to Rus- arrange to pay storage costs through By Mr. FEINGOLD (for himself, sia’s continued economic hardships, the loan maturity date or USDA re- Mr. KOHL, Mr. WYDEN, and Mr. they continue to cede ground to us in duces the amount of the loan by de- JOHNSON): technology and training. Reports even ducting the amount necessary for pre- S. 128. A bill to terminate operation contend that Russia is having trouble paid storage. Cotton producers are not of the Extremely Low Frequency Com- keeping just one or two of its strategic required to prepay storage costs. When munication System of the Navy; to the nuclear submarines operational. Ac- they redeem a loan under marketing Committee on Armed Services. cording to General Eugene E. Habiger, loan provisions or forfeit collateral, TO TERMINATE OPERATION OF THE EXTREMELY USAF (Ret.) and former commander of USDA pays the cost of the accrued LOW FREQUENCY COMMUNICATION SYSTEM OF the U.S. Strategic Command, Moscow’s storage. THE NAVY ‘‘sub fleet is belly-up.’’ It is interesting to note, Mr. Presi- Mr. FEINGOLD. Mr. President, I Further, of our known potential ad- dent, that in a 1994 audit of the cotton once again come to the floor to offer a versaries, only Russia and China pos- program, USDA’s Office of Inspector bill to terminate the Navy’s Extremely sess ballistic missile-capable sub- General found no reason for USDA to Low Frequency Communication Sys- marines. And China’s one ballistic mis- pay the accrued storage costs of cotton tem. I am again pleased to be joined in sile capable submarine is used solely as producers. The Inspector General rec- introducing this bill with the senior a test platform. Russia’s submarine Senator from Wisconsin (Mr. KOHL) and ommended that USDA ‘‘revise proce- fleet has shrunk from more than 300 the Senator from Oregon (Mr. WYDEN). dures to eliminate the automatic pay- vessels to about 100. Even Russia’s ment of cotton storage charges by CCC Mr. President, this bill would termi- nate the operation of the Navy’s Ex- most modern submarines can’t be used and make provisions consistent with to full capability because Russia can’t the treatment of storage charges on tremely Low Frequency Communica- tion System, or Project ELF, as it’s adequately train its sailors. The threat other program crops’’. for which Project ELF was designed no Although those in the cotton indus- more familiarly known, while main- taining the infrastructure in Wisconsin longer exists. try will argue that the automatic pay- Even the Pentagon and members of ments were eliminated in the Farm and Michigan for resuming should a re- this body are beginning to see the need Bill, in reality, those payments are sumption in operation become nec- for reevaluating our strategic forces, now simply hidden. It’s true that cer- essary. As my colleagues are well including our Trident ballistic missile tain provisions have been removed aware, I have long opposed this need- submarines. Earlier this month, Chief from the statute which mandates that less project. of Naval Operations Admiral Jay John- USDA pay these charges. Now, USDA Project ELF is an ineffective, unnec- son told the Senate Armed Services freely chooses to waste the taxpayers essary, outdated Cold War relic that is Committee that he wants to reduce the money by paying these costs, allowing not wanted by most residents in my fleet from 18 to 14. And Chairman WAR- cotton producers to subtract their stor- state. The members of the Wisconsin NER agreed with the need to reevaluate age costs from the market value of delegation have fought hard for years priorities on strategic weapons. their cotton, providing a larger dif- to close down Project ELF; I have in- With the end of the Cold War, Project ference with the loan rate, and there- troduced legislation during each Con- ELF becomes harder and harder to jus- fore receiving a higher return. gress since taking office to terminate Marketing Loan Programs are de- it; and I have even recommended it for tify. Trident submarines no longer signed to encourage producers to re- closure to the Defense Base Closure need to take that extra precaution deem their loans and market their and Realignment Commission. against Soviet nuclear forces. They can crops, but USDA payment of cotton This project has been opposed by now surface on a regular basis with less storage costs discourage loan redemp- residents of Wisconsin since its incep- danger of detection or attack. They tion. As long as the adjusted world tion, but for years we were told that can also receive more complicated mes- price is at or below the loan rate, pro- the national security considerations of sages through very low frequency ducers can delay loan redemption in the Cold War outweighed our concerns (VLF) radiowaves or lengthier mes- the secure expectation that domestic about this installation in our state. As sages through satellite systems, if it prices will rise or the adjusted world we continue our efforts to truly bal- can be done more cheaply. price will decline regardless of accru- ance the federal budget and as the De- During the 103rd Congress, I worked ing storage costs. partment of Defense continues to with Senator Nunn to include an Mr. President, its time to stop kid- struggle to address readiness concerns, amendment in the National Defense ding ourselves. Let’s eliminate this it is clear that Project ELF should be Authorization Act for fiscal year 1994 subsidy before it costs hardworking closed down. If enacted, my legislation requiring a report by the Secretary of Americans any more. Let’s bring eq- would save approximately $12 million a Defense on the benefits and costs of uity to the commodities program. Lets year. continued operation of Project ELF. finish what the Farm Bill started—a Project ELF is a one-way, primitive The report issued by DoD was particu- more market oriented agriculture pro- messenger system designed to signal larly disappointing because it basically gram. One that benefits us all. to—not communicate with—deeply argued that because Project ELF may Mr. President, I ask unanimous con- submerged Trident nuclear submarines. have had a purpose during the Cold sent that the bill be printed in the It is a ‘‘bell ringer’’, a pricey beeper War, it should continue to operate RECORD. system, used to tell the submarine after the Cold War as part of the com- There being no objection, the bill was when to rise to the surface to get a de- plete complement of command and ordered to be printed in the RECORD, as tailed message through a less primitive control links configured for the Cold follows: communications systems. War. S558 CONGRESSIONAL RECORD — SENATE January 19, 1999 Did Project ELF play a role in help- In recent years, a coalition of fiscal tion.’’ In fact, this history more closely ing to minimize the Soviet threat? Per- conservatives and environmentalists resembles the previously-canceled A–12 haps. Did it do so at risk to the com- have targeted Project ELF because it attack plane. And I know that neither munity? Perhaps. Does it continue to both fiscally and environmentally the Pentagon nor the Congress wants play a vital security role to the Na- harmful. The coalition, which includes another debacle like the A–12. tion? No. groups like the Concord Coalition, Tax- Mr. President, I began this debate In the fiscal year 1996 DoD authoriza- payers for Common Sense, the National over the Super Hornet in 1997 on the tion bill, the Senate cut funding for the Wildlife Federation, and Friends of the basis of the 1996 General Accounting program, but again it was resurrected Earth, took aim at about 70 wasteful Office report ‘‘Navy Aviation: F/A–18E/ in conference. and dangerous programs. I hope we F Will Provide Marginal Operational I’d like to note here that Members in take their heed and end this program. Improvement at High Cost.’’ In this re- both Wisconsin and Michigan, the Mr. President, this bill achieves two port, GAO studied the rationale and states in which Project ELF is located, vital goals of many of my colleagues need for the F/A–18E/F in order to de- support terminating the project. Also, here. It terminates a wasteful and un- termine whether continued develop- former Commanders-in-Chief of Strate- necessary Cold War era program, while ment of the aircraft is the most cost- gic Command, General George Lee But- allowing the Pentagon to address its effective approach to modernizing the ler and General Eugene E. Habiger, readiness shortfalls. This is a win-win Navy’s tactical aircraft fleet. GAO con- called for an end to Cold War nuclear situation and I hope my colleagues will cluded that the marginal improve- weapons practices, of which Project support this legislation. ments of the F/A–18E/F are far out- ELF is a harrowing reminder. Addi- Mr. President, I ask unanimous con- weighed by the high cost of the pro- tionally, the Center for Defense Infor- sent that the bill be printed in the gram. mation called for ending the program, RECORD. Since that time, I have offered nu- noting that ‘‘U.S. submarines operat- There being no objection, the bill was merous pieces of legislation that run ing under present and foreseeable ordered to be printed in the RECORD, as the gamut from outright termination worldwide military conditions can re- follows: of the program to continued oversight ceive all necessary orders and instruc- Be it enacted by the Senate and House of Rep- of it. I asked GAO for a follow-up re- tions in timely fashion without need resentatives of the United States of America in view. I have even asked DoD’s Inspec- for Project ELF.’’ Congress assembled, tor General to investigate various as- As I mentioned, this bill would ter- SECTION 1. TERMINATION OF OPERATION OF pects of the program, including testing THE EXTREMELY LOW FREQUENCY minate operation of Project ELF, but COMMUNICATION SYSTEM. evaluation. The one constant, however, would call for the Defense Department (a) TERMINATION REQUIRED.—The Secretary has been the program’s continuing dis- to maintain its infrastructure. Should of the Navy shall terminate the operation of appointments. Project ELF become necessary for fu- the Extremely Low Frequency Communica- Mr. President, as we have all heard ture military action, DoD could quick- tion System of the Navy. by now, wing drop causes the aircraft ly bring it back on-line. In essence, (b) MAINTENANCE OF INFRASTRUCTURE.—The to rock back and forth when it is flying this bill would save DoD some much- Secretary shall maintain the infrastructure at altitudes and speeds at which air-to- necessary for resuming operation of the Ex- air combat maneuvers are expected to needed operations and maintenance tremely Low Frequency Communication funds without degrading its capabili- System. occur. ties. What really disturbs me about wing Mr. President, I’d also like to briefly By Mr. FEINGOLD (for himself, drop is that almost a year and a half touch on the public health and environ- Mr. LAUTENBERG, Mr. WYDEN, went by after the discovery of the prob- mental concerns associated with and Mr. JOHNSON): lem before the Office of the Secretary Project ELF. For almost two decades, S. 129. A bill to terminate the F/A– of Defense acknowledged the problem. we have received inconclusive data on 18E/F aircraft program; to the Commit- The Pentagon’s ignorance is caused ei- this project’s effects on Wisconsin and tee on Armed Services. ther by shamefully poor communica- Michigan residents. In 1984, a U.S. Dis- TERMINATION OF THE F/A–18E/F AIRCRAFT tion or the withholding of program in- trict Court ordered that the project be PROGRAM formation by the Navy. For that rea- shut down because the Navy paid inad- Mr. FEINGOLD. Mr. President, I rise son, I have asked the DoD Inspector equate attention to the system’s pos- today to again introduce legislation General to take a look at the wing drop sible health effects and violated the terminating the U.S. Navy’s F/A–18E/F fiasco. National Environmental Policy Act. Super Hornet Program. I am pleased to Mr. President, the Navy’s Super Hor- Interestingly, that decision was over- be joined again by Senator LAUTEN- net test team discovered the wing drop turned because U.S. national security, BERG and Senator WYDEN on this im- problem in March, 1996. In October of at the time, prevailed over public portant legislation. that year, the Navy rated it a priority health and environmental concerns. Mr. President, given the Pentagon’s problem. On February 5, 1997, wing drop More than 40 medical studies point to self-reported readiness crisis, I have se- was placed on an official deficiency re- a link between electromagnetic pollu- rious doubts as to whether we can con- port. In that report, the Navy classified tion and cancer and abnormalities in tinue funding this costly program wing drop as a **1 deficiency. In other both animal and plant species. Metal while it fails to live up to expectations words, one that will cause aircraft con- fences near the two transmitters must and continues to experience highly trol loss, equipment destruction, or in- be grounded to avoid serious shock visible problems. jury. This is the most serious category from the presence of high voltages. In just the past year, we’ve been told that the Navy assigns to program defi- Mr. President, last year, an inter- that the program-threatening wing ciencies. In the same report, the Super national committee, convened by the drop problem is solved, but maybe not Hornet’s test director stated that wing National Institute of Environmental completely. We’ve also learned that drop, ‘‘will prevent or severely restrict Health Sciences urged the study of program officials may not have been the performance of air-to-air tracking electric and magnetic fields as a pos- exactly forthright in letting Pentagon tasks during air-to-air combat maneu- sible cause of cancer. Project ELF pro- superiors in on the seriousness of that vering. Therefore, the operational ef- duces the same kind of electric and problem. We’ve learned that the Super fectiveness will be compromised.’’ On magnetic fields cited by this distin- Hornet doesn’t meet all of the perform- March 12, 1997, the test team character- guished committee. The committee’s ance standards expected of it. And ized the problem as being ‘‘an unac- announcement seems to confirm the most recently, we’ve learned that ceptable deficiency’’. fears of many of my constituents. cracks in the aircraft’s engines have Two weeks later, the Navy’s Defense And recently, I have heard from a forced the Navy to approach another Acquisition Board met with the test number of dairy farmers who are con- contractor. team, which failed to mention the wing vinced that the stray voltage associ- This, Mr. President, should not be drop problem at all. Following that ated with ELF transmitters has de- the track record of the plane that the meeting, Secretary Cohen approved the monstrably reduced milk production. Navy called the ‘‘future of naval avia- group’s recommendation to spend 1.9 January 19, 1999 CONGRESSIONAL RECORD — SENATE S559 billion dollars for the first dozen Super Mr. President, the Navy has based gle-seat C in terms of instantaneous Hornets. the need for development and procure- turn performance, sustained turn per- In November, 1997, the assistant sec- ment of the F/A–18E/F on existing or formance, and in some cases, of un- retary of Defense reportedly first in- projected operational deficiencies of loaded acceleration. Interestingly formed the Navy Secretary of the wing the F/A–18C/D Hornet in the following enough, the C models used in the com- drop problem. In December, the prob- key areas: strike range, carrier recov- parisons were not even the most ad- lem was moved to the program’s high- ery payload and survivability. In addi- vanced C’s available. These deficiencies risk category. It should also be noted tion, the Navy notes limitations of cur- haven’t improved since then. that wing drop was considered by the rent Hornets with respect to avionics GAO also said that the Navy board’s Navy and the contractor, Boeing, to be growth space and payload capacity. program officials came to ‘‘the realiza- the most challenging technical risk to The Navy and Boeing call these tion that the F/A–18E/F may not be as the program at that time. This past points the ‘‘five pillars’’ of the Super capable in a number of operational per- February 4, Secretary Cohen stated un- Hornet program. The most recent GAO formance areas as the most recently equivocally that the program would report and my review of the program procured ‘C’ model aircraft that are ‘‘not go forward until wing drop is cor- show that the five pillars are weak and equipped with an enhanced perform- rected.’’ A month later, a Navy blue crumbling. ance engine.’’ ribbon panel reported that the Navy GAO identifies problems with the Mr. President, the Navy’s own test does ‘‘not have a good understanding’’ Super Hornet in each of these five team has stated that the new plane of wing drop and that the current po- areas. Meanwhile, the Navy’s responses does not perform as well as the reliable rous wing fold fix is ‘‘not a solution’’. to the criticisms are at odds with their version currently in use in key per- In May, Secretary Cohen released funds own arguments in favor of the pro- formance areas. But this isn’t enough. for the second round of production air- gram. In the 1998 report, GAO identi- The Navy now says these performance craft. Through it all, the Pentagon ap- fied problems that may diminish the criteria are not important. Mr. Presi- parently didn’t think wing drop was effectiveness of the plane’s surviv- dent, this is shameful. significant enough to warrant full dis- ability improvements, problems that In its 1996 report, GAO reached a closure. could degrade engine performance and number of conclusions. It found that Following the release of the 1998 GAO service life, and dangerous weapons the Super Hornet offers only marginal report and reports of the wing drop fi- separation problems that require addi- improvements over the Hornet, and asco, I asked the Secretary to docu- tional testing. that these are far outweighed by the ment the wing drop problem. Specifi- In July, 1997, the Navy’s Program high cost. It found that the Hornet can cally, I asked Secretary Cohen ques- Risk Advisory Board stated that ‘‘oper- be modified to meet every capacity the tions on who knew of the problem and ational testing may determine that the Super Hornet is intended to fulfill. And when they knew it. aircraft is not operationally effective GAO found that the Defense Depart- In April, I received the Secretary’s or suitable.’’ That December, the board ment could save $17 billion by purchas- disappointing response. The essence of reversed its position and said the E/F is ing additional improved Hornets in- his answers to my questions is that potentially operationally effective and stead of Super Hornets. The Congres- wing drop was not a significant enough suitable, but also reiterated its con- sional Budget Office updated that cost issue to warrant disclosure to the De- cerns with certain systems that are savings last year to $15 billion, still a fense Acquisition Board before its deci- supposed to make the Super Hornet su- princely sum, especially given DoD’s sion to recommend production of the perior to the Hornet. hopes of increasing defense spending by first lot of aircraft. These are not glowing reviews for roughly that amount each year for the Mr. President, given the Navy’s clas- any program, but are downright awful next six years. sification of wing drop, the test direc- for an aircraft program slated to cost The report also addressed other pur- tor’s assessment of the mission impact, upwards of $100 billion. We should not ported improvements of the Super Hor- and the significant efforts that were gamble with our pilots’ lives and more net over the Hornet. GAO concluded underway to resolve the problem, the than 100 billion taxpayer dollars. These that the reported operational defi- Navy’s failure to discuss the wing drop stakes are too high. ciencies of the C/D that the Navy cited problem with DoD officials responsible Also in the report, GAO asserted the to justify the E/F either have not ma- for making the decision on whether to Super Hornet doesn’t accelerate or ma- terialized as projected or that such de- proceed into production of the initial neuver as well as the Hornet. DoD ficiencies can be corrected with non- Super Hornets reflects, in my view, readily agrees, but maintains that this structural changes to the current C/D questionable judgement at best and un- is an acceptable trade-off for other ca- and additional upgrades made which derscores the need for continued DoD pabilities. I wonder if a pilot under fire would further improve its capabilities. and congressional oversight of the would agree. GAO even rebutted all of the claims Super Hornet’s development and pro- It gets better, Mr. President. The of the Hornet’s disadvantages. The re- duction program. publication, Inside the Pentagon, re- port concluded that the Navy’s F/A–18 One final point, Mr. President. It ported last February that the Navy strike range requirements can be met should be made clear that DoD and the will not hold the Super Hornet to strict by either the E/F or the C/D, and that Navy did not begin openly discussing performance specifications in three the E/F’s increased range is achieved at wing drop until after the assistant sec- areas. It published a copy of a memo the expense of its aerial combat per- retary John Douglass’ November 20, written by Rear Admiral Dennis formance. It notes that even with in- 1997, memo on the issue to Navy Sec- McGinn, the Navy’s officer in charge of creased range, both aircraft will still retary John Dalton appeared in the air warfare programs, that ordered the require aerial refueling for low-altitude press. In fact, during a February, 1998, E/F would not be strictly held to per- missions. hearing before the House National Se- formance specifications in turning, Additionally, as I mentioned earlier, curity Committee’s Research and De- climbing and maneuvering. the E/F’s increased strike range is velopment Subcommittee, Chairman Everyone can agree that these are achieved at the expense of the air- Curt Weldon voiced his displeasure important performance criteria for a craft’s aerial combat performance. with having to learn about the Super state-of-the-art fighter and attack This is shown by its sustained turn Hornet’s wing drop problem through plane. It turns out that this memo was rate, maneuvering, and acceleration— the media rather than from the Navy. sent to the E/F test team after the critical components of its ability to If the chairman of the subcommittee team concluded that the Super Hornet maneuver in either offensive or defen- responsible for the development of the was, in some cases, not as proficient in sive modes. Super Hornet has to rely on the media turning or accelerating as the Hornet. GAO also disputes the Navy’s conten- to learn about one of the Defense De- The test team concluded that the sin- tion that the C/D cannot carry 480 gal- partment’s costliest programs, then I gle-seat E, when outfitted with a rel- lon external fuel tanks. Next, the defi- think it’s fairly reliable that all the in- atively light load of air-to-air missiles, ciency in carrier recovery payload formation was not made available. is ‘‘slightly less’’ capable than the sin- which the Navy anticipated for the F/ S560 CONGRESSIONAL RECORD — SENATE January 19, 1999 A–18C simply has not materialized. and an estimated annual production By Ms. SNOWE: GAO notes that while it is not nec- rate of 72 aircraft per year, calculated S. 130. A bill to amend the Internal essary, upgrading F/A–18C’s with a unit recurring flyaway cost of $44 Revenue Code of 1986 to make the de- stronger landing gear could allow them million. However, using GAO’s more re- pendent care credit refundable, and for to recover carrier payloads of more alistic assumptions of the procurement other purposes; to the Committee on than 10,000 pounds, greater than the of 660 aircraft by the Navy, at a pro- Finance. 9,000 pounds sought for the F/A–18E/F. duction rate of 36 aircraft per year, the Additional improvements have been unit recurring flyaway cost of the By Ms. SNOWE: made or are planned for the Hornet to Super Hornet ballooned to $53 million. S. 131. A bill to amend the Internal enhance its survivability including im- Last year, the Navy used more realistic Revenue Code of 1986 to allow a deduc- provements to reduce its radar detect- procurement figures of 548 aircraft tion from gross income for home care ability, while survivability improve- with annual production at 36 aircraft and adult day and respite care expenses ments of the Super Hornet are ques- per year, which brought the unit cost of individual taxpayers with respect to tionable. For example, because the to $73 million. And I am fairly safe in a dependent of the taxpayer who suf- Super Hornet will be carrying weapons assuming this figure will only rise. fers from Alzheimer’s disease or relat- and fuel externally, the radar signature This is compared to the $28 million ed organic brain disorders; to the Com- reduction improvements derived from unit recurring flyaway cost for the mittee on Finance. the structural design of the aircraft Hornet. CBO estimates that this cost LONG TERM CARE ASSISTANCE will be diminished and will only help difference in unit recurring flyaway Ms. SNOWE. Mr. President, long the aircraft penetrate slightly deeper would result in a savings of almost $15 term care is an issue that continues to than the Hornet into an integrated de- billion if the Navy were to procure the tug at Congress and this country. In fensive system before being detected. Hornets rather than the Super Hornets. 1995 the federal and state governments Mr. President, as we discuss surviv- Mr. President, given the enormous spent $23 billion on long term care and ability, we should recall the outstand- cost and marginal improvement in another $21 billion for home care. And ing performance of the Hornet in the operational capabilities the Super Hor- it is estimated that those in need of Gulf War a few years ago. By the net would provide, it seems that the long-term care will grow from 7.3 mil- Navy’s own account, the C/D performed justification for it just isn’t there. Pro- lion today to 10–14 million by 2020—po- extraordinarily well, and, in the Navy’s ceeding with the Super Hornet program tentially a doubling of those in need. own words, experienced ‘‘unprece- may not be the most cost-effective ap- The appropriate care for an individ- dented survivability.’’ proach to modernizing the Navy’s tac- ual should be an issue that is made by The Navy predicted that by the mid- tical aircraft fleet. In the short term, that individual and their loved ones. 1990’s the Hornet would not have the Navy can continue to procure the But we all know the truth is that in growth space to accommodate addi- Hornet aircraft, while upgrading it to many cases it comes down to the finan- tional new weapons and systems under improve further its operational capa- cial realities of the family. For many development. Specifically, the Navy bilities. For the long term, the Navy people, remaining at home is their predicted that by fiscal year 1996, C/D’s can look toward the next generation choice. It allows them to remain with would only have 0.2 cubic feet of space strike fighter, the JSF, which will pro- their loved ones in familiar surround- available for future avionics growth; vide more operational capability at far ings. We need to do more to assist however, 5.3 cubic feet of available less cost than the Super Hornet. these people and their families if this space have been identified for future Mr. President, by all accounts the F/ is their choice. system growth. Furthermore, techno- A–18C/D is a top-quality aircraft that Toward that end I am reintroducing logical advancements such as minia- has served the Navy well over the last a bill that provides a tax credit for turization, modularity and consolida- decade, and could be modified to meet families caring for a relative who suf- tion may result in additional growth every capacity the E/F is intended to fers from Alzheimer’s disease. When I space for future avionics. fulfill over the course of the next dec- first came to Congress 20 years ago, not Also, while the Super Hornet will ade at a substantially lower cost. a single piece of legislation devoted to provide some increase in air-to-air ca- Therefore, considering the Depart- Alzheimer’s disease had even been in- pability by carrying two extra missiles, ment of Defense has clearly over- troduced. We have come along way it will not increase its ability to carry extended itself in terms of supporting since then, as today ‘Alzheimer’s’ is a the heavier, precision-guided, air-to- three major multirole fighter pro- household word. It is also the most ex- ground weapons that are capable of hit- grams, it is clear that we must dis- pensive uninsured illness in America. ting fixed and mobile hard targets nor continue the Super Hornet program be- Alzheimer’s will consume more of our to deliver heavier standoff weapons fore the American taxpayer is asked to national wealth-approximately $1.75 that will be used to increase aircraft fund yet another unnecessary, flawed trillion—than all other illnesses except survivability. multi-billion dollar program. cancer and heart disease. And the num- So we have a plane that doesn’t real- Mr. President, I ask unanimous con- ber of those affected by this disease is ly do the things the Navy said it would sent that the bill be printed in the rising and will continue to rise dra- do, and in some cases does not perform RECORD. matically, from 4 million today to over as well as the older version, but we’re I yield the floor. 14 million by the middle of the 21st supposed to pay probably three times There being no objection, the bill was century. more for the Super Hornet. ordered to be printed in the RECORD, as As staggering as these numbers are, Mr. President, it’s time we ended this follows: they pale in comparison to the emo- fiasco once and for all. The program al- S. 129 tional costs this disease places on the ready costs tens of billions of dollars Be it enacted by the Senate and House of Rep- family. We can help lessen that cost by more than initial Navy estimates and resentatives of the United States of America in providing some relief to Alzheimer’s costs continues to rise. Additionally, Congress assembled, patients and their families. My bill we must compare the estimated $73 SECTION 1. TERMINATION OF THE F/A–18E/F AIR- would allow families to deduct the cost CRAFT PROGRAM. million cost per plane for the Super (a) TERMINATION OF PROGRAM.—The Sec- of home care and adult day and respite Hornet to the $28 million per plane for retary of Defense shall terminate the F/A– care provided to a dependent suffering the Hornet. And, as I have mentioned, 18E/F aircraft program. from Alzheimer’s disease. some projections put the total program (b) PAYMENT OF TERMINATION COSTS.— My second bill will strengthen the cost of the F/A–18E/F at close to $100 Funds available for procurement and for re- dependent care tax credit and restore billion. search, development, test, and evaluation Congress’ original intent to provide the Mr. President, let me briefly high- that are available on or after the date of the greatest benefit of the tax credit to enactment of this Act for obligation for the light the ballooning cost of the Super F/A–18E/F aircraft program may be obligated low-income taxpayers. This bill ex- Hornet. Just a few years ago, the Navy, for that program only for payment of the pands the dependent care tax credit, using overstated assumptions about costs associated with the termination of the makes it applicable for respite care ex- the total number of planes procured program. penses and makes it refundable. January 19, 1999 CONGRESSIONAL RECORD — SENATE S561 As more and more women enter the older women who live alone live in or 29 years later, with significant finan- workforce combined with the aging of near poverty. cial and legal resource needs, as do our population, we are continuing to This bill makes a number of changes many of the lands managed by the Na- see an increased need for both child in current pension law including: help- tional Park Service. If we are to be and elder care. Expenses incurred for ing to ensure that pension benefits true stewards of America’s public this care can place a large burden on a earned during a marriage are consid- lands, we need to be willing to make family’s finances. The cost of full time ered and divided fairly in the event of necessary financial investments and child care can range from $4,000 to divorce; closing loopholes in the civil management improvements when they $10,000. The cost of nursing home care service and railroad retirement laws are warranted. I introduce this legisla- is in excess of $40,000 a year. Managing that have resulted in the loss of pen- tion in an attempt to resolve the unfin- these costs is difficult for many fami- sion benefits for widows and ex-spouses ished business that remains at the lies, but is exceptionally burdensome of beneficiaries in such plans and in- Lakeshore, as well as to renew our Na- for those in lower income brackets. creases the amount of information tion’s commitment to this beautiful In 1976, the dependent care tax credit available by establishing a pension place. was created to help low- and moderate- ‘‘hotline’’ at the Department of Labor. Mr. President, the legislation has income families alleviate the burden of three major sections. First, it author- employment-related dependent care. By Mr. FEINGOLD (for himself izes the Park Service to conduct a wil- We haven’t changed the DCTC since it and Mr. KOHL): derness suitability study of the Lake- S. 134. A bill to direct the Secretary was created 23 years and in fact, in the shore as required by the Wilderness of the Interior to study whether the 1986 Tax Reform Act we indexed all the Act. Apostle Islands National Lakeshore This study is needed to ensure that basic provisions of the tax code that should be protected as a wilderness we have the appropriate level of man- determine tax liability except for area; to the Committee on Energy and agement at the Apostle Islands Na- DCTC. We need to make the credit rel- Natural Resources. evant by updating it to reflect today’s tional Lakeshore. The Wilderness Act GAYLORD NELSON APOSTLE ISLANDS and the National Park Service policies world. My legislation will do that by STEWARDSHIP ACT OF 1999 require the Park Service to conduct an indexing the credit to inflation and Mr. FEINGOLD. Mr. President, I rise evaluation of the lands it manages for making it refundable so that those who today to introduce ‘‘The Gaylord Nel- do not reach the tax thresholds will son Apostle Islands Stewardship Act of possible inclusion in the National Wil- still received assistance. It also raises 1999.’’ I am pleased to have the Senior derness system. The study would result in a recommendation to Congress the DCTC sliding scale from 30 to 50 Senator from Wisconsin (Mr. KOHL) percent of work-related dependent care join me as an original cosponsor of this about whether any of the federally- expenditures for families earning legislation. owned lands currently within the $15,000 or less. The scale would then be Many outside Wisconsin may not Lakeshore still retain the characteris- reduced by 1 percentage point for each know that, in addition to founding tics that would make them suitable to additional $1,000 more of income, down Earth Day, Senator Nelson was also be legally designated as wilderness. If to a credit of 20 percent for persons the primary sponsor of the Apostle Is- Congress found the study indicated earning $45,000 or more. lands National Lakeshore Act. That that some of the federal lands within In order to assist those who care for act, which passed in 1970, protects one the Lakeshore were in need of legal loved ones at home, the bill also ex- of Northern Wisconsin’s most beautiful wilderness status, Congress would have pands the definition of dependent care areas, at which I spend my vacation to subsequently pass legislation to con- to include respite care, thereby offer- with my family every year. fer such status. ing relief from this additional expense. Though Senator Nelson has received We need this study, Mr. President be- A respite care credit would be allowed many awards, I know that among his cause 28 years have passed and it is for up to $1,200 for one qualifying de- proudest accomplishments are those time to determine the proper level of pendent care and $2,400 for two qualify- bills he crafted which have produced management for the Lakeshore. During ing dependents. real and lasting change in preserving the General Management Planning I hope my colleagues will join me in America’s lands, such as the Apostle Process for the Lakeshore, which was supporting these two bills that will Islands. completed nearly a decade ago in 1989, provide assistance to families that The Apostle Islands National the need for a formal wilderness study wish to provide long term care to their Lakshore includes 21 forested islands was identified. Although a wilderness loved ones at home. and 12 miles of pristine shoreline which study has been identified as a high pri- are among the Great Lakes’ most spec- ority by the Lakeshore, it has never By Ms. SNOWE: tacular scenery. Centuries of wave ac- been funded. S. 132. A bill to amend the Internal tion, freezing, and thawing have Since 1989, most of the Lakeshore, Revenue Code of 1986 to provide com- sculpted the shorelines, and nature has roughly 80 percent of the acreage, is prehensive pension protection for carved intricate caves into the sand- being managed by the Park Service as women; to the Committee on Finance. stone which forms the islands. Delicate if it were federally designated wilder- WOMEN’S PENSION PROTECTION ACT OF 1999 arches, vaulted chambers, and hidden ness. As a protective measure, all lands Ms. SNOWE. Mr. President, I rise to passageways honeycomb cliffs on the which might be suitable for wilderness introduce legislation to improve the north shore of Devils Island, Swallow designation were zoned to protect any retirement security of women. Even Point on Sand Island, and northeast of wilderness characteristics they may with the increasing number of women Cornucopia on the mainland. The Apos- have pending completion of the study. entering the workforce, only 39 percent tle Islands National Lakeshore in- However, we may be managing lands as of part-time and full-time working cludes more lighthouses than any other wilderness in the Lakeshore that women are covered by a pension plan. coastline of similar size in the United might, due to use patterns, no longer While women have come a long way, States, and is home to diverse wildlife be suitable for wilderness designation. even now a woman makes only 75 cents including: black bear, bald eagles and Correspondingly, some land area may for every dollar a man makes—and deer. It is an important recreational have become more ecologically sen- older women are payed even less: 66 area as well. Its campgrounds and acres sitive and may need additional legal cents for every dollar earned by a 55- of forest, make the Apostles a favorite protection. year-old man. In addition, as we all destination for hikers, sailors, Second, this legislation also directs know, women have spent more time kayakers, and bikers. The Lakeshore the Park Service to protect the his- outside the workforce because they also includes the underwater lakebed toric Raspberry Island and Outer Is- have spent more time inside the house- as well, and scuba divers register with land lighthouses. The bill authorizes hold raising families. These two factors the National Park Service to view the $3.9 million for bluff stabilization and help explain why older women are area’s underwater resources. other necessary actions. There are six twice as likely as older men to be poor Unfortunately, the Apostle Islands lighthouses in the Apostle Island Na- or near poor; with nearly 40 percent of National Lakeshore finds itself, nearly tional Lakeshore—Sand Island, Devil’s S562 CONGRESSIONAL RECORD — SENATE January 19, 1999 Island, Raspberry Island, Outer Island, within the Park Service-wide construc- be bold, imaginative and flexible enough to Long Island and Michigan Island. Engi- tion priorities, they have never been meet this supreme test. neering studies completed for the Na- funded. The specific authorization and Though the Apostle Islands are not, tional Park Service have determined funding contained in this legislation is because of former Senator Nelson’s ef- that several of these lighthouses are in essential if the projects are ever to re- forts, ‘‘threatened with destruction,’’ danger of structural damage due to the ceive the attention they so urgently they are a fitting place for us to rise to continued erosion of the red clay banks deserve. this challenge. I believe that Senator upon which they were built. The situa- In keeping with my belief that Nelson meant two things by his chal- tions at Outer Island and Raspberry Is- progress toward a balanced budget lenge. Not only did he mean that gov- land, the two which this legislation ad- should be maintained, I am proposing ernment must act immediately and de- dresses, were determined to be in the that the $4.1 million in authorized cisively to protect resources in crisis, most jeopardy. spending for the Apostle Islands con- but he also meant that government Last year, as part of the 1999 Interior tained in this legislation be offset by must be responsible and flexible Appropriations Bill, $215,000 was pro- rescinding $10 million in unspent funds enough to remain committed to the vided to the Apostle Island National from $40 million in funds carried over protection of the areas we wisely seek Seashore for the rehabilitation of the for the Department of Energy’s Clean to preserve under our laws. historic lighthouses. While the funding Coal Technology Program in FY 99 Om- Thus, Mr. President, I am proud to was a commendable first step, it will nibus Appropriations Bill. The Sec- introduce this legislation as a renewal allow only for preliminary engineering retary of the Interior would be required of the federal government’s commit- assessments of how to best protect to transfer $5.9 million above the ment to the Apostle Islands National these landmarks. We must go further money that it needs to take actions at Lakeshore. I look forward to working to ensure that these precious and frag- the Apostle Islands back to the Treas- with my colleagues on this legislation, ile beacons do not simply crumble into ury. and I ask unanimous consent that a Lake Superior. Mr. President, I am concerned that copy of this legislation be printed in The Raspberry Island situation is we have set aside such a large amount the RECORD. most critical. The Raspberry Island of money for the Clean Coal Tech- There being no objection, the bill was lighthouse was completed in 1863 to nology Program, which the program ordered to be printed in the RECORD, as make the west channel through the has been unable to spend, when we follows: Apostle Islands. The original light was have acute appropriations needs at S. 134 a rectangular frame structure topped places like the Apostle Islands Na- Be it enacted by the Senate and House of Rep- by a square tower that held a lens 40 tional Lakeshore. resentatives of the United States of America in Congress assembled, feet above the ground. Finally, this legislation adds lan- guage to the act which created the SECTION 1. SHORT TITLE. A fog signal building was added to This Act may be cited as the ‘‘Gaylord Nel- Raspberry Island in 1902. The red brick Lakeshore allowing the Park Service son Apostle Islands Stewardship Act of 1999’’. structure housed a ten-inch steam to enter into cooperative agreements SEC. 2. GAYLORD NELSON APOSTLE ISLANDS. whistle and a hoisting engine for a with state, tribal, local governments, (a) DECLARATIONS.—Congress declares tramway. The need for additional per- universities or other non-profit entities that— sonnel at the station led to a redesign to enlist their assistance in managing (1) the Apostle Islands National Lakeshore of the lighthouse building in 1906–07. the Lakeshore. Some parks have spe- is a national and a Wisconsin treasure; The structure was converted to a du- cific language in the act which created (2) the State of Wisconsin is particularly the park allowing them to enter into indebted to former Senator Gaylord Nelson plex, housing the keeper and his family for his leadership in the creation of the in the east half, with the two assistant such agreements. Parks have used Lakeshore; keepers sharing the west half. A 23–kil- them for activities such as research, (3) after more than 28 years of enjoyment, owatt, diesel-driven electric generator historic preservation, and emergency some issues critical to maintaining the over- was installed at the station in 1928. The services. Apostle Islands currently does all ecological, recreational, and cultural vi- light was automated in 1947 and then not have this authority, which this leg- sion of the Lakeshore need additional atten- moved to a metal tower in front of the islation adds. tion; fog signal building in 1952. Other National Park lands and lands (4) the general management planning proc- Raspberry Island light is now the which are managed by the Park Serv- ess for the Lakeshore has identified a need ice, such as the Lakeshore, have such for a formal wilderness study; most frequently visited of Apostle Is- (5) all land within the Lakeshore that lands National Lakeshore’s light- authority. Adding that authority to might be suitable for designation as wilder- houses. Recent erosion is threatening the Lakeshore will be a way to make ness are zoned and managed to protect wil- the access tram and the fog signal Lakeshore management resources go derness characteristics pending completion building. farther. The Park Service has the op- of such a study; The Outer Island light station was portunity to carry out joint projects (6) several historic lighthouses within the built in 1874 on a red clay bluff 40 feet with other partners which could con- Lakeshore are in danger of structural dam- above Lake Superior. The lighthouse tribute to the management of the age due to severe erosion; tower stands 90 feet high and the Lakeshore including: state, local, and (7) the Secretary of the Interior has been unable to take full advantage of cooperative watchroom is encircled by an outside tribal governments, universities, and agreements with Federal, State, local, and walkway and topped by the lantern. As non-profit groups. Such endeavors tribal governmental agencies, institutions of its name implies, the light is stationed would have both scientific manage- higher education, and other nonprofit orga- on the outermost island of the Apostle ment and fiscal benefits. In the past, nizations that could assist the National Park archipelago, fully exposed to Lake Su- the Lakeshore has had to forego these Service by contributing to the management perior’s gale-force storms. opportunities because the specific au- of the Lakeshore; Historic architects have indicated to thority is absent under current law. (8) because of competing needs in other the Park Service that Outer Island In his 1969 book on the environment, units of the National Park System, the entitled America’s Last Chance, Sen- standard authorizing and budgetary process lighthouse may already be suffering has not resulted in updated legislative au- some structural damage due to its lo- ator Nelson issued a political chal- thority and necessary funding for improve- cation on the bluff and the situation lenge: ments to the Lakeshore; and would be much worse if Lake Superior I have come to the conclusion that the (9) the need for improvements to the Lake- were exceedingly high. number one domestic problem facing this shore and completion of a wilderness study Engineers believe that preservation country is the threatened destruction of our should be accorded a high priority among of these structures requires protection natural resources and the disaster which National Park Service activities. of the bluff beneath the lighthouses, would confront mankind should such de- (b) DEFINITIONS.—In this section: struction occur. There is a real question as (1) LAKESHORE.—The term ‘‘Lakeshore’’ stabilization of the banks, and to whether the nation, which has spent some means the Apostle Islands National Lake- dewatering of the area immediately two hundred years developing an intricate shore. shoreward of the bluffs. Although the system of local, State and Federal Govern- (2) SECRETARY.—The term ‘‘Secretary’’ projects have in the past been included ment to deal with the public’s problems, will means the Secretary of the Interior, acting January 19, 1999 CONGRESSIONAL RECORD — SENATE S563 through the Director of the National Park to do more to ensure improved student teacher candidates, provide new teach- Service. achievement. Schools must have small ers with trained mentors who will help (c) WILDERNESS STUDY.—In fulfillment of classes, particularly in the early them succeed in the classroom, and the responsibilities of the Secretary under the Wilderness Act (16 U.S.C. 1131 et seq.) grades. They must have strong parent give current teachers the on-going and of applicable agency policy, the Sec- involvement. They must have safe, training they need to stay abreast of retary shall evaluate areas of land within modern facilities with up-to-date tech- modern technologies and new research. the Lakeshore for inclusion in the National nology. They must have high-quality Many communities are working hard Wilderness System. after-school opportunities for children to attract, keep, and support good (d) APOSTLE ISLANDS LIGHTHOUSES.—The who need extra help. They must have teachers—and often they’re succeeding. Secretary shall undertake appropriate ac- The North Carolina Teaching Fellows tion (including protection of the bluff toe be- well-trained teachers in the classroom neath the lighthouses, stabilization of the who keep up with current develop- Program has recruited 3,600 high-abil- bank face, and dewatering of the area imme- ments in their field and the best teach- ity high school graduates to go into diately shoreward of the bluffs) to protect ing practices. teaching. The students agree to teach the lighthouse structures at Raspberry Last year, with broad bipartisan sup- for four years in the state’s public Lighthouse and Outer Island Lighthouse on port, Congress made substantial invest- schools in exchange for a four-year col- the Lakeshore. ments in the nation’s public schools to lege scholarship. North Carolina prin- (e) COOPERATIVE AGREEMENTS.—Section 6 cipals report that the performance of of Public Law 91–424 (16 U.S.C. 460w–5) is reduce class size, expand after-school amended— programs, and improve the initial the Fellows far exceeds other new (1) by striking ‘‘SEC. 6. The lakeshore’’ and training of teachers. However, more teachers. inserting the following: needs to be done. In Chicago, a program called the ‘‘SEC. 6. MANAGEMENT. Education must continue to be a top Golden Apple Scholars of Illinois re- ‘‘(a) IN GENERAL.—The lakeshore’’; and priority in the new Congress. We must cruits promising young men and (2) by adding at the end the following: do more to meet the needs of public women into the profession by selecting ‘‘(b) COOPERATIVE AGREEMENTS.—The Sec- schools, families, and children, so that them during their junior year of high retary may enter into a cooperative agree- school, then mentoring them through ment with a Federal, State, tribal, or local all children have an opportunity to at- government agency or a nonprofit private tend good schools. We need to do more the rest of high school, college, and entity if the Secretary determines that a co- to help communities modernize their five years of actual teaching. 60 Golden operative agreement would be beneficial in schools, reduce class sizes, especially Apple scholars enter the teaching field carrying out section 7.’’. in grades 1–3, improve the quality of each year, and 90 percent of them stay (f) AUTHORIZATION OF APPROPRIATIONS.— the nation’s teachers, and expand in the classroom. There are authorized to be appropriated— after-school programs. Colorado State University’s Project (1) $200,000 to carry out subsection (c); and Promise recruits prospective teachers (2) $3,900,000 to carry out subsection (d). These steps are urgently needed to (g) FUNDING.— help communities address the serious from fields such as law, geology, chem- (1) IN GENERAL.—Of the funds made avail- problems of rising student enrollments, istry, stock trading and medicine. Cur- able under the heading ‘‘CLEAN COAL TECH- overcrowded classrooms, dilapidated rent teachers mentor graduates in NOLOGY’’ under the heading ‘‘DEPARTMENT schools, teacher shortages, underquali- their first two years of teaching. More OF ENERGY’’ for obligation in prior years, fied teachers, high turnover rates of than 90 percent of the recruits enter in addition to the funds deferred under the teachers, and lack of after-school pro- the field, and 80 percent stay for at heading ‘‘CLEAN COAL TECHNOLOGY’’ under the grams. These are real problems that least five years. heading ‘‘DEPARTMENT OF ENERGY’’ New York City’s Mentor Teacher In- under section 101(e) of division A of Public deserve real solutions. Law 105–277— The needs of families across the na- ternship Program has increased the re- (A) $5,000,000 shall not be available until tion should not be ignored. They want tention of new teachers. In Montana, October 1, 2000; and the federal government to offer a help- only 4 percent of new teachers in men- (B) $5,000,000 shall not be available until ing hand in improving public schools. toring programs left after their first October 1, 2001. This year, the nation has set a new year of teaching, compared with 28 per- (2) ONGOING PROJECTS.—Funds made avail- record for elementary and secondary cent of teachers without mentoring able in previous appropriations Acts shall be student enrollment. The figure has programs. available for any ongoing project regardless reached an all-time high of 53 million New York City’s District 2 has made of the separate request for proposal under which the project was selected. students—500,000 more students than professional development the central (3) TRANSFER OF FUNDS.—In addition to any last year. component for improving schools. They amounts made available under subsection (f), Serious teacher shortages are being believe that student learning will in- amounts made available under paragraph (1) caused by rising student enrollments, crease as the knowledge of educators shall be transferred to the Secretary for use and also by the growing number of grows—and it’s working. In 1996, stu- in carrying out subsections (c) and (d). teacher retirements. The nation’s pub- dent math scores were second in the (4) UNEXPENDED BALANCE.—Any balance of lic schools will need to hire 2.2 million city. funds transferred under paragraph (3) that teachers over the next ten years, just Massachusetts has invested $60 mil- remain unexpended at the end of fiscal year 1999 shall be returned to the Treasury. to hold their own. If we don’t act now, lion in the Teacher Quality Endow- the need for more teachers will put ment Fund to launch the 12-to-62 Plan By Mr. KENNEDY (for himself, even greater pressure on school dis- for Strengthening Massachusetts Fu- Mr. DASCHLE, Mrs. MURRAY, Mr. tricts to lower their standards and hire ture Teaching Force. The plan being LEVIN, Mr. WELLSTONE, Mrs. unqualified teachers. developed is a comprehensive effort to BOXER, Mr. KERRY, Ms. MIKUL- Also, too many teachers leave within improve recruitment, retention, and SKI, and Mr. BAUCUS): the first three years of teaching—in- professional development of teachers S. 136, A bill to provide for teacher cluding 30–50% of teachers in urban throughout their careers. excellence and classroom help; to the areas—because they don’t get the sup- Congress should build on and support Committee on Health, Education, port and mentoring they need to suc- these successful efforts across the Labor, and Pensions. ceed. Veteran teachers and principals country to ensure that the nation’s TEACHER EXCELLENCE ACT OF 1999 need more and better opportunities for teaching force is strong and successful Mr. KENNEDY. Mr. President, states professional development to enhance in the years ahead. and local communities are making sig- their knowledge and skills, to inte- The Teacher Excellence Act we are nificant progress toward improving grate technology into the curriculum, introducing will invest $1.2 billion in their public schools. Almost every and to help children meet high stand- fiscal year 2000 to improve the recruit- state has developed challenging aca- ards. ment, retention, and on-going profes- demic standards for all students to We must fulfill last year’s commit- sional development of the nation’s meet—and they are holding schools ac- ment to help communities hire 100,000 teachers. The proposal will provide countable for results. new teachers, in order to reduce class states and local school districts with But just setting standards isn’t size. But it is equally important that the support they need to recruit excel- enough. Schools and communities have we help communities recruit promising lent teacher candidates, to retain and S564 CONGRESSIONAL RECORD — SENATE January 19, 1999 support promising beginning teachers, fied teachers. Currently, communities the government to meet its obligations and to provide veteran teachers and across the country have hired 50,000 un- under the Social Security contract. principals with the on-going profes- qualified teachers in order to address For many, the security provided by sional development they need to help such shortages. More than 12 percent of this supplemental pension plan is the all children meet high standards of newly hired teachers have no training difference between a happy and healthy achievement. and 15 percent of new teachers enter retirement and one marked by uncer- States will receive grants through teaching without meeting state stand- tainty and apprehension, particularly the current Title I or Title II formula, ards. for the vast majority of seniors on whichever is greater. They will use 20 Under the Teacher Excellence Act, fixed incomes. percent of the funding to provide schol- states and communities will be held ac- As part of his massive 1993 tax hike, arships to prospective teachers— countable for reducing the number of President Clinton imposed a tax in- whether they are high school grad- emergency certified teachers and out- crease on senior citizens, subjecting to uates, professionals who want to make of-field placements of teachers. As they taxation up to 85 percent of the Social a career change, or paraprofessionals work to improve recruitment, reten- Security received by seniors with an- who want to become fully certified as tion, and professional development of nual incomes of over $34,000 and cou- teachers. Scholarship recipients must teachers, states and communities ples with over $44,000 in annual income. agree to teach for at least 3 years after should also reduce these practices that This represents a 70 percent increase completion of the teaching degree and undermine efforts to help all students in the marginal tax rate for these sen- teach in a high-need school district or meet high standards. States will be iors. Factor in the government’s ‘‘So- in a high-need subject. able to use up to 10 percent of the funds cial Security Earnings Limitation,’’ At least 70 percent of the funds must in order to meet these accountability and a senior’s marginal tax rate can go to local school districts on a com- requirements. reach 88 percent—twice the rate paid petitive basis to implement, improve In addition, the bill supports the full by millionaires. or expand high-quality programs for $300 million for funding of Title II of An analysis of government-provided beginning teachers, including mentor- the Higher Education Act to improve figures on the 1993 Social Security tax ing and internship programs, and pro- the initial preparation of teachers. increase finds that, at the end of 1998, vide high-quality professional develop- Also, current support for technology America’s seniors have paid an extra ment for principals and veteran teach- programs must include a requirement $25 billion because of this tax hike, in- ers. Our goal is to ensure that every for training teachers in how to use cluding $380 million from senior citi- child has the opportunity to meet high technologies effectively to improve zens in Arizona alone. state standards. States must also set student learning. Mr. President, I want to make an ad- additional eligibility criteria, includ- We must do all we can to improve ditional important point. Despite all ing the poverty rate of the school dis- teacher quality across the country. the partisan demagoguery, the only at- trict; the need for support based on low What teachers know and are able to tack on Social Security in recent years student achievement and low teacher teach are among the most important has come from the administration and retention rates; and the need for up- influences on student achievement. Im- the other party in the Omnibus Budget grading the knowledge and skills of proving teacher quality is an effective Reconciliation Act of 1993. Not one Re- veteran teachers in high-priority con- way to link high state standards to the publican supported this tax increase on tent areas. Other criteria include the classroom. We should do all we can to Social Security benefits. need to help students with disabilities ensure that every child has the oppor- If the administration opposes any and limited English proficiency. States tunity to learn from a qualified, well- meaningful tax cut, the relief we will must target grants to school districts trained teacher and to attend a school be able to provide will be limited. It with the highest needs and ensure a with a well-trained principal. will be difficult, then, to repeal the So- fair distribution of grants among cial Security tax increase. This is why, school districts serving urban and rural By Mr. KYL: in the 105th Congress, I offered an areas. S. 137. A bill to amend the Internal amendment to ensure that we are able In addition to providing states and Revenue Code of 1986 to repeal the in- to expand tax relief in the future, and communities with the support they crease in tax on social security bene- why the first tax relief proposal I am need to ensure that there is a qualified, fits; to the Committee on Finance. introducing in the 106th Congress will well-trained teacher in every class- THE SENIOR CITIZENS INCOME TAX RELIEF ACT repeal President Clinton’s 1993 Social room, we must also hold states and OF 1999 Security tax increase. communities accountable for results— Mr. KYL. Mr. President, I rise to in- and for making the changes that will troduce the Senior Citizens Income Tax By Mr. KYL: achieve those results. Relief Act. This legislation would give S. 138. A bill to amend the Internal Currently, teachers are often as- seniors relief from the Clinton Social Revenue Code of 1986 to allow a credit signed subjects in which they have no Security tax increase of 1993. I intro- against income tax for expenses of at- training or experience. Nearly one- duced this bill on August 5, 1993, the tending elementary and secondary fourth of all secondary school teachers day this tax was first imposed on schools and for contributions to chari- do not have even a college minor in America’s senior citizens. table organizations which provide their main teaching field, let alone a Senator PETE DOMENICI, Chairman of scholarships for children to attend college major. This fact is true for the Senate Budget Committee, re- such schools; to the Committee on Fi- more than 50 percent of math teachers. cently predicted that the federal gov- nance. 56 percent of high school students tak- ernment would generate a budget sur- J–12 COMMUNITY PARTICIPATION ACT OF 1999 ing a physical science course are plus of up to $700 billion over the next Mr. KYL. Mr. President, I rise to in- taught by out-of-field teachers, as are 10 years. He proposed that roughly $600 troduce an education proposal that will 27 percent of those taking mathe- billion of this surplus be used to fund a increase parental and student choice, matics, and 21 percent of those taking tax cut. I could not agree more. I will educational quality, and school safety. English. The proportions are much be working with Senator DOMENICI and A colleague from the Arizona delega- higher in high-poverty schools. In members of the Senate on both sides of tion, representative MATT SALMON, is schools with the highest minority en- the aisle to ensure that there will be today introducing this proposal in the rollments, students have less than a 50 sufficient room in this surplus for So- House of Representatives. percent chance of having science or cial Security tax relief for senior citi- The ‘‘K through 12 Community Par- math teachers who hold a license and a zens. ticipation Act’’ would offer tax credits degree in the field they teach. Millions of America’s senior citizens to families and businesses of up to $250 Because of teacher shortages caused depend on Social Security as a critical annually for qualified K through 12 by rising enrollments and teacher re- part of their retirement income. Hav- education expenses or activities. tirements, communities must often ing paid into the program throughout Over the last 30 years, Americans lower their standards and hire unquali- their working lives, retirees count on have steadily increased their monetary January 19, 1999 CONGRESSIONAL RECORD — SENATE S565 commitment to education. Unfortu- The conclusion of the Education at education so that we can have the edu- nately, we have not seen a correspond- the Crossroads report is that the feder- cated citizenry that Thomas Jefferson ing improvement in the quality of the ally designed ‘‘one-size-fits-all’’ ap- said was essential to our health as a education our children receive. Given proach to education is simply not nation. our financial commitment, and the working. great importance of education, these Mr. President, I believe we need a By Mr. ROBB (for himself and results are unacceptable. federal education policy that will: Mr. HOLLINGS): Mr. President, I believe the problem Give parents more control. S. 139. A bill to grant the power to is not how much money is spent, but Give local schools and school boards the President to reduce budget author- how it is spent, and by whom. more control. ity; to the Committee on the Budget The K through 12 Community Par- Spend dollars in the classrooms, not and the Committee on Governmental ticipation Act addresses the problem of on a Washington bureaucracy. Affairs, jointly, pursuant to the order falling education standards by giving Reaffirm our commitment to basic of August 4, 1977, with instructions families and businesses a tax incentive academics. that if one Committee reports, the to provide children with a higher qual- My state of Arizona has led the way other Committee have thirty days to ity education through choice and com- with education tax credit legislation report or be discharged. petition. passed in 1997. This state law provides SEPARATE ENROLLMENT AND LINE ITEM VETO The problem of declining education tax credits that can be used by parents ACT OF 1999 standards is illustrated by a 1998 report and businesses to cover certain types of Mr. ROBB. Mr. President, I rise to in- released by the Education and Work- expenses attendant to primary and sec- troduce the Separate Enrollment and force Committee of the House of Rep- ondary education. Line Item Veto Act of 1999. I’m pleased resentatives, Education at the Cross- Mr. President, today, Representative to be joined by my long-time colleague roads. This is the most comprehensive SALMON and I are reintroducing a form and tireless fighter for budget sanity, review of federal education programs of the Arizona education tax-credit Senator HOLLINGS of South Carolina. ever undertaken by the United States law. As former governors, we both under- Congress. It shows that the federal gov- The K through 12 Community Par- stand the importance of line-item veto ernment’s response to the decline in ticipating Education Act would be authority in prioritizing spending. The American schools has been to build big- phased in over four years and would en- legislation we introduce today is simi- ger bureaucracies, not a better edu- courage parents, businesses, and other lar to that passed by the Senate in 1995, cation system. members of the community to invest in which is patterned on the separate en- According to the report, there are our children’s education. rollment process that we both sup- more than 760 federal education pro- Specifically, it offers every family or ported with former Senator Bill Brad- grams overseen by at least 39 federal business a tax credit of up to $250 annu- ley of New Jersey. agencies at a cost of $100 billion a year ally for any K through 12 education ex- I have been a long-time supporter of to taxpayers. These programs are over- pense or activity. This tax credit could various line-item veto measures be- lapping and duplicative. be applied to home schooling, public cause I believe that only the President For example, there are 63 separate schools (including charter schools), or has the singular ability to reconcile (but similar) math and science pro- parochial schools. Allowable expenses spending priorities in the best interest grams, 14 literacy programs, and 11 would include tuition, books, supplies, of the nation. Recognizing that Con- drug-education programs. Even after and tutors. gress has been unable or unwilling to accounting for recent streamlining ef- Further, the tax credit could be given seriously address our problems with forts, the U.S. Department of Edu- to a ‘‘school-tuition organization’’ for special interest tax provisions and cation still requires over 48.6 million distribution. To qualify as a school-tui- spending for members’ pet projects, as hours worth of paperwork per year— tion organization, the organization last year’s appropriations process at- this is the equivalent of 25,000 employ- would have to devote at least 90 per- tests, some form of additional veto au- ees working full time. cent of its income per year to offering thority should be given to the Presi- States get at most seven percent of available grants and scholarships for dent. Otherwise, the President contin- their total education funds from the parents to use to send their children to ues to have to approve items in bills federal government, but most states re- the school of their choice. which he doesn’t support to approve port that roughly half of their paper- How would this work? A group of those that he does. work is imposed by federal education businesses in any community could As my colleagues know, the Separate authorities. join forces to send sums for which they Enrollment Line Item Veto legislation The federal government spends tax received tax credits to charitable we passed in 1995 in the Senate was ul- dollars on closed captioning of ‘‘edu- ‘‘school-tuition organizations’’ which timately changed in conference nego- cational’’ programs such as would make scholarships and grants tiations with the House of Representa- ‘‘Baywatch’’ and Jerry Springer’s available to low income parents of chil- tives. The end product of those nego- squalid daytime talk show. dren currently struggling to learn in tiations was an enhanced rescission With such a large number of pro- unsafe, non-functional schools. line item veto process, giving the grams funded by the federal govern- Providing all parents—including low President the ability to strike items ment, it’s no wonder local school au- income parents—increased freedom to from bills after signing them into law. thorities feel the heavy hand of Wash- choose will foster competition and in- Because that approach was struck ington upon them. crease parental involvement in edu- down by the Supreme Court, I believe And what are the nation’s taxpayers cation. the line item veto is an important getting for their money? According to Insuring this choice will make the enough fiscal tool that we ought to put the report, federal education tax code more like forward other alternatives. Around 40 percent of fourth graders Arizona’s. It is a limited but important The separate enrollment process con- cannot read; and 57 percent of urban step the Congress and the President tained in this bill presents few con- students score below their grade level. can—and I believe, must—take. stitutional concerns. This process Half of all students from urban Mr. President, it’s clear that top- doesn’t give the President the ability school districts fail to graduate on down, one-size fits all, big government to strike items from bills he otherwise time, if at all. education policy has failed our chil- approves. This approach breaks down U.S. 12th graders ranked third from dren and our country. bills into their individual parts that the bottom out of 21 nations in mathe- This tax-credit legislation will are then passed again as separate bills, matics. refocus our efforts on doing what is in making sure each provision can then According to U.S. manufacturers, 40 the best interests of the child as deter- stand on its own merits. percent of all 17-year-olds do not have mined by parents, and will give parents In closing, let me acknowledge that the math skills to hold down a produc- and businesses the opportunity to take this line item veto legislation, like the tion job at a manufacturing company. an important step to rescue American previous experiment, won’t solve all S566 CONGRESSIONAL RECORD — SENATE January 19, 1999 the nation’s fiscal problems, but that it first AAA credit rating in the state’s had been depicted, untamed and majes- is a needed step if we are interested in history. The Governors of 43 states now tic, the way Americans saw it in the pursuing good public and budget pol- possess line item veto authority. I have 1830s and 1840s as they moved west. His icy. been trying for years to bring this students and followers included Fred- Mr. HOLLINGS. Mr. President, I rise same approach to Washington. I have erick Church, Alfred Bierstadt, Thomas today along with Senator ROBB to in- introduced or co-sponsored a separate Moran, and John Frederick Kennesett. troduce the Separate Enrollment and enrollment line-item veto in every No description of Cole’s works would Line Item Veto Act of 1999. This Con- Congress since 1985. In that year, I co- do them justice, but let me say that gress, I hope the Senate will finally sponsored Senator Mack Mattingly’s their moody, dramatic style and sub- dispense with political gamesmanship separate enrollment bill, which re- ject matter were in sharp contrast to and enact a true line item veto. It is ceived 58 votes in the Senate. In 1990, I the pastoral European landscapes that past time to restore responsibility to offered a similar bill in the Senate Americans previously had admired. federal spending by granting the Presi- Budget Committee, which passed the The new country was just settled dent the power to strike wasteful and line item veto for the first time in his- enough that some people had time and unnecessary items from our budget. tory by a bipartisan vote of 13–6. In resources to devote to collecting art. The bill we are introducing today is a 1993, after Senator Bradley came on Cole’s new style coincided with this ‘‘separate enrollment’’ line item veto. board, we were again able to get a ma- growing interest, to the benefit of It provides that each spending or tax jority of 53 votes. Then, in 1995, support both. provision be enrolled as a separate bill, for the bill reached an all-time high Cole had begun his painting career in allowing the President to either sign or when the bill finally passed the Senate Manhattan, but one day took a steam- veto each of these smaller bills in ac- with 69 votes. boat up the Hudson for inspiration. It cordance with the veto power expressly One needs to look no further than worked. The landscapes he saw set him granted under Article I, Section 7 of last year’s end of the session debacle to on the artistic course that became his the Constitution. This legislation is de- see the need for the line item veto. life’s work. He eventually moved to a signed to allow the President to strike Nearly an entire year’s worth of legis- house up the river in Catskill. First he spending or tax items from the budget lation—including eight of the thirteen boarded; then he bought the house. He without violating the delicate separa- normal appropriations bills, an emer- married and raised his family there. tion of powers which exists under our gency spending bill, and a tax ‘‘extend- That house, known as Cedar Grove, re- Constitution. In contrast, the so-called ers’’ bill—was wrapped into a mon- mained in the Cole family until 1979, ‘‘enhanced rescission’’ line item veto— strosity entitled the Omnibus Consoli- when it was put up for sale. enacted in 1996 and struck down by the dated and Emergency Supplemental The Cole house would be only the Supreme Court on June 25, 1998—rep- Appropriations Bill for Fiscal Year second site under the umbrella of the resented a shift in the separation of 1999. The time period between the Park Service dedicated to interpreting powers. Under that approach, the drafting of the bill and its enactment the life and work of an American paint- President had the authority to sign a was so short that Senators made state- er. bill into law, then strike individual ments on the floor that they did not Olana, Church’s home, sits imme- provisions and require a Congressional even know the contents of the bill. Un- diately across the Hudson, so we have supermajority to override these rescis- fortunately, this type of omnibus ap- the opportunity to provide visitors sions. In doing so, the President was propriations has become common in re- with two nearby destinations that clearly performing a legislative func- cent years, and it prevents an obvious show the inspiration for two of Ameri- tion granted exclusively to Congress by opportunity for abuse. Wasteful spend- ca’s foremost nineteenth century the Constitution. ing and tax items are included in these painters. Visitors could walk, hike, or When the Supreme Court announced huge, hastily drafted bills, and the drive to the actual spots where master- its decision striking down the 1996 line President is faced with a ‘‘take it or pieces were painted and see the land- item veto, the White House and many leave it’’ proposition. With the session scape much as it was then. in Congress clamored in the media winding down, he often is forced to I regret that none of Thomas Cole’s about how disappointed they were. The ‘‘take it,’’ including items which are work hang in the Capitol, although two truth is that no one was really sur- totally without merit. The line item works by Bierstadt can be found in the prised. In fact, many Senators—includ- veto would prevent this type of waste stairwell outside the Speaker’s Lobby. ing myself—made statements in 1996 and irresponsibility by allowing each Perhaps Cole’s greatest work is the and voted against the bill because it item to be considered separately. four-part Voyage of Life, an allegorical was unconstitutional. The events sur- I urge my colleagues to support this series that depicts man in the four rounding the enactment of the 1996 law line item veto bill with the same bi- stages of life. It can be found in the Na- clearly show that politics was placed partisan support it received in 1995 so tional Gallery, along with two other before policy. In 1995 our separate en- that we may finally restore respon- Cole paintings. Another work of Cole’s rollment approach had received bipar- sibility to our federal budget process. that we would be advised to remember tisan support in the Senate, with 69 is The Course of Empire, which depicts Senators voting for the measure. The By Mr. MOYNIHAN (for himself the rise of a great civilization from the ‘‘enhanced rescission’’ approach, on the and Mr. SCHUMER): wilderness, and its return. other hand, received only 45 votes when S. 140. A bill to establish the Thomas Several years ago the first major considered in 1993, with several Sen- Cole National Historic Site in the Cole exhibition in decades was held at ators raising constitutional objections State of New York as an affiliated area the National Museum of American Art. during the debate. However, in an ap- of the National Park System, and for The exhibition was all the evidence parent attempt to put off meaningful other purposes; to the Committee on needed of Cole’s importance and the reform in favor of Presidential politics, Energy and Natural Resources. merit of adding his home to the list of the ‘‘enhanced rescission’’ bill was res- THOMAS COLE NATIONAL HISTORIC SITE National Historic Sites. I should add urrected in 1996 in an effort to score po- DESIGNATION ACT that this must happen soon. The house litical points. Now, we have come full Mr. MOYNIHAN. Mr. President, I rise needs work, and will not endure many circle after the Court’s decision. It is to introduce a bill which would place more winters in its present state. time to get serious and enact the same the home and studio of Thomas Cole This legislation would authorize co- bill which received 69 votes in 1995. under the care of the Greene County operative agreements under which the Mr. President, I am no stranger to Historical Society as a National His- management of the Cole House would this issue. As Governor of South Caro- toric Site. I am pleased Senator SCHU- go to the Greene County Historical So- lina, I saw first hand how effective the MER has agreed to cosponsor this bill. ciety, which is entirely qualified for line item veto can be. I used it to cut Thomas Cole founded the American ar- the job. The Society could enter into millions of dollars in wasteful spending tistic tradition known as the Hudson cooperative agreements with the Na- from the state budget, and in the proc- River School. He painted landscapes of tional Park Service for the preserva- ess helped earn South Carolina the the American wilderness as it never tion and interpretation of the site. January 19, 1999 CONGRESSIONAL RECORD — SENATE S567 I ask that my colleagues support this Thomas Cole House, studio, and other prop- (A) the Committee on Energy and Natural legislation, and that the text of the bill erty comprising the historic site. Resources of the Senate; and be printed in the RECORD. SEC. 4. ESTABLISHMENT OF THOMAS COLE NA- (B) the Committee on Resources of the There being no objection, the bill was TIONAL HISTORIC SITE. House of Representatives. (a) ESTABLISHMENT.—There is established, SEC. 7. AUTHORIZATION OF APPROPRIATIONS. ordered to be printed in the RECORD, as as an affiliated area of the National Park There are authorized to be appropriated follows: System, the Thomas Cole National Historic such sums as are necessary to carry out this S. 140 Site in the State of New York. Act. Be it enacted by the Senate and House of Rep- (b) DESCRIPTION.—The historic site shall resentatives of the United States of America in consist of the Thomas Cole House and studio, By Mr. MOYNIHAN: Congress assembled, comprising approximately 3.4 acres, located S. 141. A bill to amend section 845 of at 218 Spring Street in the village of Cats- SECTION 1. SHORT TITLE. title 18, United States Code, relating to kill, New York, as generally depicted on the This Act may be cited as the ‘‘Thomas Cole boundary map numbered TCH/80002, and explosive materials; to the Committee National Historic Site Designation Act’’. dated March 1992. on the Judiciary. SEC. 2. FINDINGS AND PURPOSES. SEC. 5. RETENTION OF OWNERSHIP AND MAN- LEGISLATION RELATING TO EXPLOSIVE (a) FINDINGS.—Congress finds that— AGEMENT OF HISTORIC SITE BY MATERIAL (1) the Hudson River school of landscape GREENE COUNTY HISTORICAL SOCI- Mr. MOYNIHAN. Mr. President, I rise painting was inspired by Thomas Cole and ETY. today to introduce a bill which re- was characterized by a group of 19th century Under a cooperative agreement entered landscape artists who recorded and cele- into under section 6(b)(1), the Greene County stricts those who can have access to brated the landscape and wilderness of the Historical Society of Greene County, New black powder, the primary ingredient United States, particularly in the Hudson York, shall own, manage, and operate the in pipe bombs. At present, there are no River Valley region in the State of New historic site. restrictions on those who wish to buy York; SEC. 6. ADMINISTRATION OF HISTORIC SITE. commercially manufactured black (2) Thomas Cole is recognized as the United (a) APPLICABILITY OF NATIONAL PARK SYS- powder in quantities not to exceed 50 States’s most prominent landscape and alle- TEM LAWS.—Under a cooperative agreement pounds solely for sporting or rec- gorical painter of the mid-19th century; entered into under subsection (b)(1), the his- toric site shall be administered by the Soci- reational purposes. Anyone, including (3) located in Greene County, New York, a convicted felon, a fugitive from jus- the Thomas Cole House, also known as ety in a manner consistent with this Act and Thomas Cole’s Cedar Grove, is listed on the all laws generally applicable to units of the tice, and a person adjudicated to be National Register of Historic Places and has National Park System, including— mentally defective, can buy commer- been designated as a National Historic Land- (1) the Act entitled ‘‘An Act to establish a cially manufactured black powder in mark; National Park Service, and for other pur- the above amounts with no questions (4) within a 15-mile radius of the Thomas poses’’, approved August 25, 1916 (16 U.S.C. 1 asked. This is both wrong and dan- Cole House, an area that forms a key part of et seq.); and gerous. The same restrictions that the rich cultural and natural heritage of the (2) the Act entitled ‘‘An Act to provide for the preservation of historic American sites, apply to who can buy explosives should Hudson River Valley region, significant land- also apply to those who can lawfully scapes and scenes painted by Thomas Cole buildings, objects, and antiquities of na- and other Hudson River artists, such as tional significance, and for other purposes’’, buy commercially manufactured black Frederic Church, survive intact; approved August 21, 1935 (16 U.S.C. 461 et powder. (5) the State of New York has established seq.). Mr. President, I ask unanimous con- (b) COOPERATIVE AGREEMENTS.— the Hudson River Valley Greenway to pro- sent that the bill be printed in the (1) ASSISTANCE TO SOCIETY.—The Secretary mote the preservation, public use, and enjoy- RECORD. may enter into cooperative agreements with ment of the natural and cultural resources of There being no objection, the bill was the Society— the Hudson River Valley region; and (A) to preserve the Thomas Cole House and ordered to be printed in the RECORD, as (6) establishment of the Thomas Cole Na- other structures in the historic site; and follows: tional Historic Site will provide— (B) to assist with education programs and S. 141 (A) opportunities for the illustration and research and interpretation of the Thomas Be it enacted by the Senate and House of Rep- interpretation of cultural themes of the her- Cole House and associated landscapes in the resentatives of the United States of America in itage of the United States; and historic site. Congress assembled, (B) unique opportunities for education, (2) OTHER ASSISTANCE.—The Secretary may public use, and enjoyment. SECTION 1. EXPLOSIVE MATERIALS. enter into cooperative agreements with the Section 845(a) of title 18, United States (b) PURPOSES.—The purposes of this Act State of New York, the Society, the Thomas are— Code, is amended— Cole Foundation, and other public and pri- (1) in paragraph (4), by adding ‘‘and’’ at the (1) to preserve and interpret the Thomas vate entities to— end; and Cole House and studio for the benefit, inspi- (A) further the purposes of this Act; and (2) by striking paragraph (5) and redesig- ration, and education of the people of the (B) develop, present, and fund art exhibits, nating paragraph (6) as paragraph (5). United States; resident artist programs, and other appro- (2) to help maintain the integrity of the priate activities related to the preservation, By Mr. MOYNIHAN: setting in the Hudson River Valley region interpretation, and use of the historic site. S. 142. A bill to amend section 842 of that inspired artistic expression; (c) ARTIFACTS AND PROPERTY.— title 18, United States Code, relating to (3) to coordinate the interpretive, preserva- (1) PERSONAL PROPERTY GENERALLY.—The tion, and recreational efforts of Federal, explosive materials transfers; to the Secretary may acquire personal property as- Committee on the Judiciary. State, and other entities in the Hudson Val- sociated with, and appropriate for, the inter- ley region in order to enhance opportunities pretation of the historic site. LEGISLATION TO REQUIRE THAT THE FEDERAL for education, public use, and enjoyment; (2) WORKS OF ART.—The Secretary may ac- GOVERNMENT BE NOTIFIED WHEN EXPLOSIVES and quire works of art associated with Thomas ARE PURCHASED (4) to broaden understanding of the Hudson Cole and other Hudson River artists for the Mr. MOYNIHAN. Mr. President, I rise River Valley region and its role in the his- purpose of display at the historic site. today to introduce a bill that would re- tory and culture of the United States. (d) GENERAL MANAGEMENT PLAN.— quire vendors of explosives to notify SEC. 3. DEFINITIONS. (1) IN GENERAL.—Not later than September the Federal Bureau of Alcohol, To- In this Act: 30, 2000, under a cooperative agreement en- bacco, and Firearms (B.A.T.F.) when (1) HISTORIC SITE.—The term ‘‘historic tered into under section 6(b)(1), the Society, site’’ means the Thomas Cole National His- with the assistance of the Secretary, shall they sell such items. Now, there is no toric Site established by section 4. develop a general management plan for the requirement that a seller notify the (2) HUDSON RIVER ARTIST.—The term ‘‘Hud- historic site. B.A.T.F. when a customer buys explo- son River artist’’ means an artist associated (2) CONTENTS OF PLAN.—The plan shall in- sives. All that is required is that the with the Hudson River school of landscape clude recommendations for regional wayside buyer complete a federally generated painting. exhibits, to be carried out through coopera- form—5400.4—and that the seller keep (3) PLAN.—The term ‘‘plan’’ means the gen- tive agreements with the State of New York it. There is nothing that requires the eral management plan developed under sec- and other public and private entities. seller to send a copy of this form to the tion 6(d). (3) AUTHORITY.—The plan shall be prepared B.A.T.F. (4) SECRETARY.—The term ‘‘Secretary’’ in accordance with section 12(b) of Public means the Secretary of the Interior. Law 91–383 (16 U.S.C. 1a–7(b)). In all likelihood, any terrorist attach (5) SOCIETY.—The term ‘‘Society’’ means (4) SUBMISSION OF PLAN.—On the comple- aimed at this country’s infrastructure the Greene County Historical Society of tion of the plan, the Secretary shall provide will use explosives to achieve its pur- Greene County, New York, that owns the a copy of the plan to— pose. One key way to prevent an attack S568 CONGRESSIONAL RECORD — SENATE January 19, 1999 such as this is to have information (b) CAT SCANS.—Section 6(b)(2) of the Pro- preserve, and protect the South Florida eco- about the individuals who are buying fessional Boxing Safety Act of 1996 (15 U.S.C. system required by section 528(b) of the these items. 6305(b)(2)) is amended by inserting before the Water Resources Development Act of 1996 Mr. President, I ask unanimous con- period the following: ‘‘and, with respect to (110 Stat. 3767); but such renewal, present proof from a physician (2) only if the plan does not specify that sent that the bill be printed in the that such boxer has taken a computerized construction and water storage are required RECORD. axial tomography (CAT) scan within the 30- in the addition (as determined by the Sec- There being no objection, the bill was day period preceding that date on which the retary of the Interior). ordered to be printed in the RECORD, as renewal application is submitted and that no follows: brain damage from boxing has been de- By Mr. ABRAHAM: S. 142 tected’’. S. 145. A bill to control crime by re- quiring mandatory victim restitution; Be it enacted by the Senate and House of Rep- By Mr. GRAHAM (for himself and resentatives of the United States of America in to the Committee on the Judiciary. Mr. MACK): Congress assembled, VICTIM RESTITUTION ENFORCEMENT ACT S. 144. A bill to require the Secretary Mr. ABRAHAM. Mr. President, I rise SECTION 1. RECORDKEEPING REQUIREMENTS of the Interior to review the suitability FOR EXPLOSIVE MATERIALS TRANS- today to introduce the Victim Restitu- FERS. for inclusion in the National Wilder- tion Enforcement Act of 1999. I have Section 842(f) of title 18, United States ness Preservation System of the Ever- long supported restitution for crime Code, is amended, in the first sentence— glades expansion area; to the Commit- victims, and have long been convinced (1) by striking ‘‘require,’’ and inserting tee on Energy and Natural Resources. that justice requires us to devise effec- ‘‘require (’’; and REVIEW OF EVERGLADES EXPANSION AREA FOR (2) by inserting before the period at the end tive mechanisms through which vic- POTENTIAL AS WILDERNESS tims can enforce restitution orders and the following: ‘‘) and transmitting a copy of Mr. GRAHAM. Mr. President, since each such record to the Secretary’’. make criminals pay for their crimes. my days as Governor of the State of I was very pleased when we enacted By Mr. MOYNIHAN: Florida, I have been a strong advocate mandatory victim restitution legisla- S. 143. A bill to amend the Profes- of the protection and restoration of the tion in the 104th Congress as part of sional Boxing Safety Act of 1996 to Florida Everglades, the largest wetland the Antiterrorism and Effective Death standardize the physical examinations and subtropical wilderness in the Penalty Act of 1996. I supported that that each boxer must take prior to United States. This legislation will re- legislation and very much appreciated each professional boxing match and to quire the Secretary of the Interior to the efforts of my colleagues, particu- review the suitability for inclusion in require a brain CAT scan every 2 years larly Senators HATCH, BIDEN, NICKLES, the National Wilderness Preservation as a requirement for the licensing of a GRASSLEY, and MCCAIN, to ensure that boxer; to the Committee on Commerce, System of the Everglades expansion victim restitution provisions were in- Science, and Transportation. area, a designation that will protect cluded in the antiterrorism legislation. and preserve this area for the use of THE PROFESSIONAL BOXING SAFETY ACT Those victim restitution provisions— AMENDMENTS OF 1996 present and future generations. This brought together as the Mandatory Mr. MOYNIHAN. Mr. President, On action will be an important step to- Victims Restitution Act of 1996—will January 3, 1999, Jerry Quarry, a peren- wards maintaining the natural habitat significantly advance the cause of jus- nial heavyweight boxing champion of such endangered species as the Flor- tice for victims in federal criminal contender in the 1960’s and 1970’s, died ida panther, the snail kite, and the cases. The Act requires federal courts, of pneumonia brought on by an ad- cape sable seaside sparrow, as well as when sentencing criminal defendants, vanced state of dementia pugilistica. sustaining uninterupted water flow to to order these defendants to pay res- He was 53. The list goes on: Sugar Ray the Everglades’ aquifers, the main titution to the victims of their crimes. Robinson, Archie Moore and Muham- water source for the majority of the It also establishes a single set of proce- mad Ali are but a few examples. The rapidly growing state of Florida. Over dures for the issuance of restitution or- Professional Boxing Safety Act of 1996 the last 100 years, this ecosystem has ders in federal criminal cases to pro- was an excellent step toward making been altered by man to provide for de- vide uniformity in the federal system. professional boxing safer for its par- velopment, to manage water for irriga- Inclusion of mandatory victim restitu- ticipants. Nevertheless, it contains sev- tion, and to provide flood control in tion provisions in the federal criminal eral gaps. times of hurricanes. The review of this code was long overdue, and I am The two amendments I propose here land for potential as wilderness may pleased that the 104th Congress was today are aimed at protecting profes- lead to greater future protection of the able to accomplish that. sional fighters by requiring more rigor- Everglades ecosystem. However, much more remains to be ous prefight physical examinations and Mr. President, I ask unanimous con- done to ensure that victims can actu- by requiring a brain catscan before a sent that the text of the bill be printed ally collect those restitution payments boxer can renew his or her professional in the RECORD. and to provide victims with effective There being no objection, the bill was license. means to pursue whatever restitution ordered to be printed in the RECORD, as Mr. President, I ask unanimous con- payments are owed to them. Even if a follows: sent that the bill be printed in the defendant may not have the resources S. 144 RECORD. to pay off a restitution order fully, vic- There being no objection, the bill was Be it enacted by the Senate and House of Rep- tims should still be entitled to go after resentatives of the United States of America in ordered to be printed in the RECORD, as Congress assembled, whatever resources a defendant does follows: SECTION 1. REVIEW OF EVERGLADES EXPANSION have and to collect whatever they can. S. 143 AREA FOR POTENTIAL AS WILDER- We should not effectively tell victims Be it enacted by the Senate and House of Rep- NESS. that it is not worth going after what- (a) DEFINITION OF ADDITION.—In this sec- resentatives of the United States of America in ever payments they might get. That is tion, the term ‘‘addition’’ has the meaning Congress assembled, what could happen under the current given the term in section 101(c) of the Ever- system, in which victims have to rely SECTION 1. SHORT TITLE. glades National Park Protection and Expan- This Act may be cited as the ‘‘Professional sion Act of 1989 (16 U.S.C. 410r–5(c)). on government attorneys—who may be Boxing Safety Act Amendments of 1999’’. (b) REVIEW AND REPORT.—Subject to sub- busy with many other matters—to pur- SEC. 2. AMENDMENTS TO THE PROFESSIONAL section (c), in accordance with section 3 of sue restitution payments. Instead, we BOXING SAFETY ACT OF 1996. the Wilderness Act (16 U.S.C. 1132), the Sec- should give victims themselves the (a) STANDARDIZED PHYSICAL EXAMINA- retary of the Interior shall review and report tools they need so that they can get TIONS.—Section 5(1) of the Professional Box- on the suitability for inclusion in the Na- what is rightfully theirs. ing Safety Act of 1996 (15 U.S.C. 6304(1)) is tional Wilderness Preservation System of The victim restitution provisions en- amended by inserting after ‘‘examination’’ any part of the addition. the following: ‘‘, based on guidelines en- (c) EFFECTIVE DATE.—Subsection (b) shall acted in the 104th Congress consoli- dorsed by the American Medical Association, take effect— dated the procedures for the collection including a circulo-respiratory check and a (1) on the date of submission to Congress of of unpaid restitution with existing pro- neurological examination,’’. the proposed comprehensive plan to restore, cedures for the collection of unpaid January 19, 1999 CONGRESSIONAL RECORD — SENATE S569 fines. Unless more steps are taken to tempt, increase the defendant’s origi- the economic circumstances of each defend- make enforcement of restitution orders nal sentence, or revoke probation or ant); and (2) disclose to the defendant and more effective for victims, we risk al- supervised release. the attorney for the Government all portions of the report pertaining to such matters. lowing mandatory restitution to be My legislation will also give the This section also makes specified provi- mandatory in name only, with crimi- courts power to impose pre-sentence sions of the Federal criminal code and Rule nals able to evade ever paying their restraints on defendants’ uses of their 32(c) of the Federal Rules of Criminal Proce- restitution and victims left without assets in appropriate cases. This will dure the only rules applicable to proceedings the ability to take action to enforce prevent well-heeled defendants from for the issuance and enforcement of restitu- restitution orders. dissipating assets prior to sentencing. tion orders. It authorizes the court, upon ap- In the 104th Congress, I introduced Without such provisions, mandatory plication of the United States, to enter a re- the Victim Restitution Enforcement straining order or injunction, require the victim restitution provisions may well execution of a satisfactory performance Act of 1995. Many components of my be useless in many cases. Even in those bond, or take any other action to preserve legislation were also included in the rare cases in which a defendant has the the availability of property or assets nec- victim restitution legislation enacted means to pay full restitution at once, if essary to satisfy a criminal restitution as part of the Antiterrorism and Effec- the court has no capacity to prevent order, if specified circumstances apply. tive Death Penalty Act. The legislation the defendant from spending ill-gotten This legislation also sets forth provisions regarding: (1) notice requirements; (2) evi- I introduce today is similar to the leg- gains or other assets prior to the sen- islation I introduced in the 104th Con- dence and information that the court may tencing phase, there may be nothing consider at a hearing; (3) the use of tem- gress as Senate Bill S. 1504 and again in left for the victim by the time the res- porary restraining orders; (4) disclosure of fi- the 105th Congress as S. 812, and is de- titution order is entered. nancial information regarding the defendant; signed to build on what are now cur- The provisions permitting pre-sen- (5) the use of consumer credit reports; (6) rent provisions of law. All in all, I hope tence restraints are similar to other timetables for the attorney for the United to ensure that restitution payments provisions that already exist in the law States to provide the probation service of from criminals to victims become a re- for private civil actions and asset for- the court with information available to the ality, and that victims have a greater attorney, including matters occurring before feiture cases, and they provide ade- the grand jury relating to the identity of the degree of control in going after crimi- quate protections for defendants. They victims, the amount of loss, and financial nals to obtain restitution payments. require a court hearing, for example, matters relating to the defendant. Under my legislation, restitution or- and place the burden on the govern- Further, this section directs the attorney ders would be enforceable as a civil ment to show by a preponderance of for the Government to provide notice to all debt, payable immediately. Most res- the evidence that pre-sentence re- victims. It authorizes: (1) the court to limit the information to be provided or sought by titution is now collected entirely straints are warranted. through the criminal justice system. It the probation service under specified cir- In short, I want to make criminals cumstances; (2) a victim who objects to any is frequently paid as directed by the pay and to give victims the tools with information provided to the probation serv- probation officer, which means restitu- which to make them pay. In enacting ice by the attorney for the United States to tion payments cannot begin until the mandatory victim restitution legisla- file a separate affidavit with the court; and prisoner is released. This bill makes tion in the 104th Congress, we dem- (3) the court to require additional docu- restitution orders payable imme- onstrated our willingness to make mentation or hear testimony after reviewing the report of the probation service. Provides diately, as a civil debt, speeding recov- some crimes subject to this process. I ery and impeding attempts by crimi- for the privacy of records filed and testi- believe we must take additional steps mony heard and permits records to be filed nals to avoid repayment. This provi- to make those mandatorily issued or- or testimony to be heard in camera. sion will not impose criminal penalties ders easily enforceable. This legislation also establishes procedures on those unable to pay, but will simply This legislation is supported by the regarding the court’s ascertaining of the vic- allow civil collection against those National Victim Center and by the tims’ losses. It permits the court to refer any who have assets. Michigan Coalition Against Domestic issue arising in connection with a proposed This will provide victims with new restitution order to a magistrate or special and Sexual Violence. I ask unanimous master for proposed findings of fact and rec- means of collecting restitution pay- consent to have placed in the RECORD ments. If the debt is payable imme- ommendations as to disposition, subject to a letters of support from those victims’ de novo determination of the issue by the diately, all normal civil collection pro- rights organizations. court. Sets forth provisions regarding: (1) cedures, including the Federal Debt I urge my colleagues to support my consideration of compensation for losses Collection Act, can be used to collect legislation, which will empower vic- from insurance or other sources; and (2) the the debt. The bill explicitly gives vic- burden of proof. tims to collect on the debts that they The bill directs the court to order restitu- tims access to other civil procedures are owed by criminals and which will already in place for the collection of tion to each victim in the full amount of improve the enforceability of restitu- each victim’s losses as determined by the debts. This lightens the burden of col- tion orders. court without consideration of the defend- lecting debt on our Federal courts and I also ask unanimous consent that a ant’s economic circumstances. It sets forth prosecutors. summary of the bill be placed in the provisions regarding situations where the My bill further provides that Federal RECORD. amount of the loss is not reasonably ascer- courts will continue to have jurisdic- tainable, and where there is more than one There being no objection, the sum- tion over criminal restitution judg- defendant. The bill also specifies that no vic- mary was ordered to be printed in the ments for five years, not including tim shall be required to participate in any RECORD, as follows: time that the defendant is incarcer- phase of a restitution order. SECTION-BY-SECTION ANALYSIS This legislation requires the defendant to ated. The court is presently permitted notify the court and the Attorney General of Section 1. Short title. to resentence or take several other ac- any material change in the defendant’s eco- tions against a criminal who willfully This section provides that the act may be nomic circumstances that might affect the refuses to make restitution payments; cited as the ‘‘Victim Restitution Enforce- defendant’s ability to pay restitution. Au- ment Act of 1999.’’ the court may do so until the termi- thorizes the court to adjust the payment nation of the term of parole. Courts Section 2. Procedures for Issuance and Enforcement schedule. of Restitution Order. It also sets forth provisions regarding: (1) should have the ability to do more over This section amends the Federal criminal court retention of jurisdiction over criminal a longer period of time, and to select code to revise procedures for the issuance restitution judgments; and (2) enforcement those means that are more likely to and enforcement of restitution orders. The of restitution orders. Further, this section prove successful. Under my bill, during legislation directs the court to: (1) order the specifies that: (1) a conviction of a defendant the extended period, Federal courts probation service of the court to obtain and for an offense giving rise to restitution shall will be permitted, where the defendant include in its presentence report, or in a sep- estop the defendant from denying the essen- knowingly fails to make restitution arate report, information sufficient for the tial allegations of that offense in any subse- court to exercise its discretion in fashioning quent Federal civil proceeding or State civil payments, to modify the terms or con- a restitution order (which shall include a proceeding, regardless of any State law pre- ditions of a defendant’s parole, extend complete accounting of the losses to each cluding estoppel for a lack of mutuality; and the defendant’s probation or supervised victim, any restitution owed pursuant to a (2) the victim, in such subsequent proceed- release, hold the defendant in con- plea agreement, and information relating to ing, shall not be precluded from establishing S570 CONGRESSIONAL RECORD — SENATE January 19, 1999 a loss that is grater than that determined by This is good news, Mr. President. And too exposed to dangerous drugs, far the court in the earlier criminal proceeding. there is widespread agreement among more exposed than any of us can prob- Section 3. Civil Remedies experts in the field that the principal ably really imagine. In light of these This section adds restitution to a provision cause of this decline in violent crime is two trends, it would be a catastrophic governing the post-sentence administration our success in curbing the crack co- mistake to let any drug dealer think of fines. Provides that an order of restitution shall operate as a lien in favor of the United caine epidemic and the violent gang ac- that the cost of doing business is going States for its benefit or for the benefit of any tivities that accompany that epidemic. down. As important, Mr. President, it non-federal victims against all property be- The New York Times recently reported will be nearly impossible to succeed in longing to the defendant. Authorizes the on a conference of criminologists held discouraging our children from using court, in enforcing a restitution order, to in New Orleans. Experts at the con- drugs if they hear we are lowering sen- order jointly owned property divided and ference agreed that the rise and fall in tences for any category of drug dealers. sold, subject to specified requirements. violent crime during the 1980s and 1990s I ask my colleagues to send a strong Section 4. Fines closely paralleled the rise and fall of message to drug dealers and to our Species that a defendant shall not incur the crack epidemic. kids, the message that drugs are dan- any criminal penalty for failure to make a At the same time, there is a warning gerous and illegal, and those who sell payment on a fine, special assessment, res- signal here. The most recent ‘‘Monitor- them will not be tolerated. This legis- titution, or cost because of the defendant’s indigency. ing the Future’’ Study done by the Uni- lation will send this message, and I Section 5. Resentencing versity of Michigan, which tracks drug urge my colleagues to give it their full This section authorizes the court, where a use and attitudes by teenagers, showed support. defendant knowingly fails to pay a delin- an increase in the use of both crack I ask unanimous consent that the quent fine, to increase the defendant’s sen- and powder cocaine this year. This is in text of the bill be printed in the tence to any sentence that might originally contrast to its finding that the use of RECORD. have been imposed under the applicable stat- other drugs by kids may finally be lev- There being no objection, the bill was ute. eling off, albeit at unacceptably high ordered to be printed in the RECORD, as levels. follows: By Mr. ABRAHAM (for himself, Yet surprisingly, despite these devel- S. 146 Mr. ALLARD, Mrs. FEINSTEIN, opments, in last year’s Ten Year Plan Be it enacted by the Senate and House of Rep- Mr. HATCH, Mr. THURMOND, Mr. for a National Drug Control Strategy, resentatives of the United States of America in HELMS, Mr. KYL, Mr. HUTCH- the Administration proposed making Congress assembled, INSON, Mr. GRAMS, Mr. ENZI, crack sentences 5 times more lenient SECTION 1. SHORT TITLE. Mr. HAGEL, and Mr. COVER- than they are today. Why? The Admin- This Act may be cited as the ‘‘Powder Co- caine Sentencing Act of 1999’’. DELL): istration say we need to reduce crack SEC. 2. SENTENCING FOR VIOLATIONS INVOLV- S. 146. A bill to amend the Controlled dealer sentences because they are too Substances Act with respect to pen- ING COCAINE POWDER. tough when compared to sentences for (a) AMENDMENT OF CONTROLLED SUB- alties for crimes involving cocaine, and powder cocaine dealers. And it is true STANCES ACT.— for other purposes; to the Committee that it does not make sense for people (1) LARGE QUANTITIES.—Section on the Judiciary. higher on the drug chain to get lighter 401(b)(1)(A)(ii) of the Controlled Substances THE POWDER COCAINE SENTENCING ACT sentences than those at the bottom. Act (21 U.S.C. 841(b)(1)(A)(ii)) is amended by striking ‘‘5 kilograms’’ and inserting ‘‘500 Mr. ABRAHAM. Mr. President, I rise But going easier on crack peddlers—the to introduce ‘‘The Powder Cocaine Sen- grams’’. dealers who infest our school yards and (2) SMALL QUANTITIES.—Section tencing Act of 1999.’’ This legislation playgrounds—is not the solution. 401(b)(1)(B)(ii) of the Controlled Substances would toughen federal policy toward Crack is cheap and highly addictive. Act (21 U.S.C. 841(b)(1)(B)(ii)) is amended by powder cocaine dealers by reducing Tough crack sentences have encour- striking ‘‘500 grams’’ and inserting ‘‘50 from 500 to 50 grams the amount of aged many dealers to turn in their su- grams’’. powder cocaine a person must be con- periors in exchange for leniency. Soft- (b) AMENDMENT OF CONTROLLED SUB- victed of distributing in order to re- ening these sentences will remove that STANCES IMPORT AND EXPORT ACT.— (1) LARGE QUANTITIES.—Section ceive a mandatory 5 year minimum incentive and undermine our prosecu- sentence. 1010(b)(1)(B) of the Controlled Substances tors, making them less effective at pro- Import and Export Act (21 U.S.C. 960(b)(1)(B)) I am convinced, Mr. President, that tecting our children and our neighbor- is amended by striking ‘‘5 kilograms’’ and in- we need tougher sentences for powder hoods. serting ‘‘500 grams’’. cocaine dealers so that we may protect The Powder Cocaine Sentencing Act (2) SMALL QUANTITIES.—Section our kids from drugs and our neighbor- rests on the conviction that there is a 1010(b)(2)(B) of the Controlled Substances hoods from the violence and social better way to bring crack and powder Import and Export Act (21 U.S.C. 960(b)(2)(B)) breakdown that accompany drug traf- cocaine sentences more in line. First, is amended by striking ‘‘500 grams’’ and in- ficking. serting ‘‘50 grams’’. it rejects any proposal to lower sen- (c) AMENDMENT OF SENTENCING GUIDE- We have seen a disturbing trend in tences for crack dealers. Second, it LINES.—Pursuant to section 994 of title 28, recent years, a reversal, really, of the makes sentences for powder cocaine United States Code, the United States Sen- decade long progress we enjoyed in the dealers a good deal tougher than they tencing Commission shall amend the Federal war on drugs. For example, over the are today. sentencing guidelines to reflect the amend- last six years the percentage of high Mr. President, this legislation will ments made by this section. school seniors admitting that they had reduce the differential between the Mr. GRAMS. Mr. President, I rise in used an illicit drug has risen by more amount of powder and crack cocaine support of the ‘‘Powder Cocaine Sen- than half. This spells trouble for our required to trigger a mandatory mini- tencing Act of 1999’’ sponsored by Sen- children. Increased drug use means in- mum sentence from 100 to 1 to 10 to 1— ator SPENCE ABRAHAM of Michigan. I creased danger of every social pathol- the same ratio proposed by the Admin- am proud to be an original cosponsor of ogy of which we know. It must stop. istration. But this legislation will ac- this important legislation that will Ironically, at the same time that we complish that goal, not by making toughen federal policy toward powder are learning the disturbing news about crack dealer sentences more lenient, cocaine dealers. overall drug use among teens, we also but rather by toughening sentences for As we begin the legislative business are finding heartening news in our war powder cocaine dealers. of the Senate this year, we must on violent crime. The F.B.I. now re- At this crucial time we may be mak- strengthen our efforts to stop illegal ports that, since 1991, the number of ing real progress in winning the war on drug use and drug-related crime and vi- homicides committed in the United violent crime in part because we have olence. We must fulfill our moral obli- States has dropped by 31 percent. Also sent the message that crack gang gation to communicate the dangers since 1991, the number of robberies has membership is no way to live and that and consequences of illegal drug use. fallen 32 percent. According to the Bu- society will come down very hard on Continuing our fight against the threat reau of Justice Statistics, robberies those spreading this pernicious drug. of drug abuse is one of the most impor- fell a stunning 17 percent in 1997 alone. At the same time our kids remain all tant contributions the 106th Congress January 19, 1999 CONGRESSIONAL RECORD — SENATE S571 can make toward providing a promis- ratio to 10-to-1 by toughening powder onstrated and the producers’ continu- ing future for the young people of cocaine sentences without reducing ing trend toward more efficient en- America. crack cocaine sentences. gines, it is time for the setting of Under current law, a dealer must dis- By February 1, Congress will receive CAFE standards to once again reside tribute 500 grams of powder cocaine to a National Drug Control Strategy from with elected officials. qualify for a 5-year mandatory mini- the Office of National Drug Control I urge my colleagues to cosponsor mum prison sentence, and distribute 5 Policy which will contain goals for re- this legislation and ask that the text of grams of crack cocaine for that of- ducing drug abuse in the United States. the bill be printed in the RECORD. fense. These sentencing guidelines re- As part of this plan, I am hopeful that There being no objection, the bill was sult in a 100-to-1 quantity ratio be- National Drug Control Policy Director ordered to be printed in the RECORD, as tween powder and more severe crack Barry McCaffrey will speak out force- follows: cocaine distribution sentences. This fully against any proposal to make sen- S. 147 disparity has caused a great deal of tences for a person who is convicted of Be it enacted by the Senate and House of Rep- concern among members of Congress dealing crack cocaine more lenient. resentatives of the United States of America in and the administration. Unfortunately, Punishing drug dealers who prey upon Congress assembled, the Clinton administration fails to see the innocence of our children should be SECTION 1. AVERAGE FUEL ECONOMY STAND- ARDS. the dangers in changing the federal a critical component of our nation’s Beginning on the date of enactment of this crack cocaine distribution law. drug strategy. Act, the average fuel economy standards es- During the 104th Congress, the U.S. Mr. President, I urge my colleagues tablished (whether directly or indirectly) Sentencing Commission recommended to support the ‘‘Powder Cocaine Sen- under regulations promulgated by the Sec- a lower threshold under which a con- tencing Act of 1999’’ and reject lower retary of Transportation under chapter 329 of victed person may receive a 5-year federal crack sentences. We should ex- title 49, United States Code, prior to the date mandatory sentence in cases involving ercise greater oversight of federal sen- of enactment of this Act for automobiles (as the distribution of crack cocaine. tencing policy for cocaine offenses. that term is defined in section 32901 of title Passage of this legislation will help 49, United States Code) that are in effect on Through the leadership of Senator the day before the date of enactment of this ABRAHAM, Congress overwhelmingly give greater protection to Americans Act, shall apply without amendment, passed legislation which rejected the from drugs by keeping offenders off the change, or other modification of any kind Sentencing Commission’s proposal. At streets for longer periods of time. (whether direct or indirect) for— the signing ceremony for this legisla- (1) the model years specified in the regula- tion, President Clinton expressed the By Mr. ABRAHAM (for himself, tions; strong message its enactment would Mr. LEVIN, Mr. ASHCROFT, and (2) the applicable automobiles specified in send to our Nation and those who Mr. DEWINE): the regulations last promulgated for such automobiles; and choose to deal drugs throughout our S. 147. A bill to provide for a reduc- tion in regulatory costs by maintain- (3) each model year thereafter; communities. until chapter 329 of title 49, United States President Clinton remarked, ing Federal average fuel economy standards applicable to automobiles in Code, is specifically amended to authorize an We have to send a constant message to our amendment, change, or other modification children that drugs are illegal, drugs are effect at current levels until changed to such standards or is otherwise modified or dangerous, drugs may cost you your life— by law, and for other purposes; to the superseded by law. and the penalties for dealing drugs are se- Committee on Commerce, Science, and vere. I am not going to let anyone who ped- Transportation. By Mr. ABRAHAM (for himself, dles drugs get the idea that the cost of doing CORPORATE AVERAGE FUEL ECONOMY Mr DASCHLE, Mr. CHAFEE, Mr. business is going down. STANDARDS HATCH, and Mr. DURBIN): Regrettably, the Clinton administra- Mr. ABRAHAM. Mr. President, I rise S. 148. A bill to require the Secretary tion continues to promote a federal today to introduce legislation with of the Interior to establish a program sentencing policy for crack cocaine of- Senators LEVIN, ASHCROFT, and DEWINE to provide assistance in the conserva- fenses that fails to recognize the dan- that would freeze the Corporate Aver- tion of neotropical migratory birds; to gerous and addictive nature of this ille- age Fuel Economy standards—known the Committee on Environment and gal substance and its impact upon vio- as CAFE—at current levels unless Public Works. lent crime throughout our commu- changed by Congress. MIGRATORY BIRD PROTECTION nities. In an April 1997 report to Con- This issue is attracting an increased Mr. ABRAHAM. Mr. President, I rise gress, the Sentencing Commission amount of attention as automobile today to introduce the ‘‘Neotropical unanimously recommended an increase manufacturers continue to increase car Migratory Bird Conservation Act of in the mandatory minimum trigger for and light truck efficiency and as Amer- 1999.’’ This legislation, which I am in- the distribution of crack cocaine. icans begin to understand the con- troducing today with my distinguished I share the views expressed by the ad- sequences of increased fuel economy colleagues, Senator DASCHLE and Sen- ministration and community groups in standards: less consumer choice, more ator CHAFEE, is designed to protect my home state of Minnesota that the dangerous vehicles and reduced com- over 90 endangered species of bird current penalty disparity in cocaine petitiveness for domestic automobile spending certain seasons in the United sentencing should be addressed. How- manufacturers. Perhaps, Mr. President, States and other seasons in other na- ever, I disagree with the ill-advised some of these repercussions could be tions of the Western Hemisphere. This manner in which the administration easier to accept if the supposed bene- is actually the second time Senator seeks to achieve this goal by making fits of increased CAFE standards were DASCHLE and I have introduced this the mandatory minimum prison sen- ever realized, but this has not oc- bill. Last year, after receiving consid- tences for crack cocaine dealers at curred. In the two decades since CAFE erable support from the environmental least five times more lenient than they standards were first mandated, this Na- community, this legislation passed the are today. tion’s oil imports have grown to ac- Senate by unanimous consent. Unfor- Mr. President, the legislation offered count for nearly half our annual con- tunately, time ran out for equal con- today by Senator ABRAHAM represents sumption and the average number of sideration in the House. Nevertheless, a fair and effective approach toward miles driven by Americans has in- we are back again with renewed deter- federal cocaine sentencing policy. creased. mination and I believe the effort in the Rather than make federal crack co- Mr. President, last session 15 Sen- 106th Congress will prove successful. caine sentences more lenient, the Abra- ators from both sides of the aisle joined Every year, Mr. President, approxi- ham bill would reduce from 500 to 50 me in sponsoring this legislation. mately 25 million Americans travel to grams the amount of powder cocaine a Given the importance of the auto- observe birds, and 60 million American person must be convicted of distribut- mobile industry to the continued eco- adults watch and feed birds at home. ing before receiving a mandatory 5- nomic health of the country, the pref- Bird-watching is a source of real pleas- year sentence. This legislation would erence for increased capacity that ure to many Americans, as well as a adjust the current 100-to-1 quantity American consumers have dem- source of important revenue to states, S572 CONGRESSIONAL RECORD — SENATE January 19, 1999 like my own state of Michigan, which er portion of these funds will be fo- (B) the primary reason for the decline in attract tourists to their scenes of natu- cused outside the U.S. Approved pro- the populations of those species is habitat ral beauty. Bird watching and feeding grams will manage and conserve loss and degradation (including pollution and generates fully $20 billion every year in neotropical migratory bird popu- contamination) across the species’ range; and revenue across America. lations. Those eligible to participate (4)(A) because neotropical migratory birds Birdwatching is a popular activity in will include national and international range across numerous international borders Michigan, and its increased popularity nongovernmental organizations and each year, their conservation requires the is reflected by an increase in tourist business interest, as well as U.S. gov- commitment and effort of all countries along dollars being spent in small, rural com- ernment entities. their migration routes; and munities. Healthy bird populations The key to this act is cooperation (B) although numerous initiatives exist to also prevent hundreds of millions of among nongovernmental organizations. conserve migratory birds and their habitat, dollars in economic losses each year to The federal share of each project’s cost those initiatives can be significantly farming and timber interests. They strengthened and enhanced by increased co- is never to exceed 33 percent. For ordination. help control insect populations, there- grants awarded outside the U.S., the by preventing crop failures and infesta- nonfederal match can be made with in- SEC. 3. PURPOSES. tions. kind contributions. This will encourage The purposes of this Act are— Despite the enormous benefits we de- volunteerism and local interest in com- (1) to perpetuate healthy populations of rive from our bird populations, many of neotropical migratory birds; munities that lack the financial re- (2) to assist in the conservation of them are struggling to survive. Ninety source to contribute currency. Since neotropical migratory birds by supporting species are listed as endangered or domestic organizations and commu- conservation initiatives in the United threatened in the United States. An- nities are more financially secure, the States, Latin America, and the Caribbean; other 124 species are of high conserva- matching portion of grants awarded and tion concern. In my own state we are within the U.S. will be required in (3) to provide financial resources and to working to bring the Kirtland’s War- cash. foster international cooperation for those bler back from the brink of extinction. The approach taken by this legisla- initiatives. In recent years, the population of this tion differs from that of current pro- SEC. 4. DEFINITIONS. distinctive bird has been estimated at grams in that it is proactive and, by In this Act: approximately 200 nesting pairs. That avoiding a crisis management ap- (1) ACCOUNT.—The term ‘‘Account’’ means number has recently increased to an proach, will prove significantly more the Neotropical Migratory Bird Conservation estimated 800 nesting pairs, but this cost effective. In addition, this legisla- Account established by section 9(a). entire species spends half of the year in tion does not call for complicated and (2) CONSERVATION.—The term ‘‘conserva- tion’’ means the use of methods and proce- the Bahamas. Therefore, the signifi- expensive bureaucratic structures such dures necessary to bring a species of cant efforts made by Michigan’s De- as councils, commissions or multi- neotropical migratory bird to the point at partment of Natural Resources and tiered oversight structures. Further, which there are sufficient populations in the concerned residents will not be enough this legislation will bring needed at- wild to ensure the long-term viability of the to save this bird if its winter habitat is tention and expertise to areas now re- species, including— degraded or destroyed. Not surpris- ceiving relatively little attention in (A) protection and management of ingly, the primary reason for most de- the area of environmental degradation. neotropical migratory bird populations; clines is the loss of bird habitat. This legislation has the support of (B) maintenance, management, protection, This situation is not unique, among and restoration of neotropical migratory the National Audubon Society, the bird habitat; bird watchers’ favorites, many American Bird Conservancy and the (C) research and monitoring; neotropical birds are endangered or of Ornithological Council. These organi- (D) law enforcement; and high conservation concern. And several zations agree with Senator DASCHLE, (E) community outreach and education. of the most popular neotropical spe- SENATOR CHAFEE and I that, by estab- (3) SECRETARY.—The term ‘‘Secretary’’ cies, including bluebirds, robins, gold- lishing partnerships between business, means the Secretary of the Interior. finches and orioles, migrate to and government and nongovernmental or- SEC. 5. FINANCIAL ASSISTANCE. from the Caribbean and Latin America. ganizations both here and abroad we (a) IN GENERAL.—The Secretary shall es- Because neotropical migratory birds can greatly enhance the protection of tablish a program to provide financial assist- range across a number of international migratory bird habitat. ance for projects to promote the conserva- borders every year, we must work to I urge my colleagues to support this tion of neotropical migratory birds. establish safeguards at both ends of bill and ask that a copy of the legisla- (b) PROJECT APPLICANTS.—A project pro- their migration routes, as well as at tion be printed in the RECORD. posal may be submitted by— critical stopover areas along their way. There being no objection, the bill was (1) an individual, corporation, partnership, Only in this way can conservation ef- ordered to be printed in the RECORD, as trust, association, or other private entity; forts prove successful. follows: (2) an officer, employee, agent, depart- ment, or instrumentality of the Federal Gov- That is why Senator DASCHLE, Sen- S. 148 ernment, of any State, municipality, or po- ator CHAFEE and I have introduced the Be it enacted by the Senate and House of Rep- litical subdivision of a State, or of any for- ‘‘Neotropical Migratory Bird Conserva- resentatives of the United States of America in eign government; tion Act.’’ This legislation will protect Congress assembled, (3) a State, municipality, or political sub- bird habitats across international SECTION 1. SHORT TITLE. division of a State; boundaries by establishing partner- This Act may be cited as the ‘‘Neotropical (4) any other entity subject to the jurisdic- ships between the business community, Migratory Bird Conservation Act’’. tion of the United States or of any foreign nongovernmental organizations and SEC. 2. FINDINGS. country; and foreign nations. By teaming businesses Congress finds that— (5) an international organization (as de- fined in section 1 of the International Orga- with international organizations con- (1) of the nearly 800 bird species known to occur in the United States, approximately nizations Immunities Act (22 U.S.C. 288)). cerned to protect the environment we 500 migrate among countries, and the large (c) PROJECT PROPOSALS.—To be considered can combine capital with know-how. majority of those species, the neotropical for financial assistance for a project under By partnering these entities with local migrants, winter in Latin America and the this Act, an applicant shall submit a project organizations in countries where bird Caribbean; proposal that— habitat is endangered we can see to it (2) neotropical migratory bird species pro- (1) includes— that local people receive the training vide invaluable environmental, economic, (A) the name of the individual responsible they need to preserve this habitat and recreational, and aesthetic benefits to the for the project; maintain this critical natural resource. United States, as well as to the Western (B) a succinct statement of the purposes of This act establishes a three year Hemisphere; the project; (3)(A) many neotropical migratory bird (C) a description of the qualifications of in- demonstration project providing $8 populations, once considered common, are in dividuals conducting the project; and million each year to help establish pro- decline, and some have declined to the point (D) an estimate of the funds and time nec- grams in the United States, Latin that their long-term survival in the wild is essary to complete the project, including America and the Caribbean. The great- in jeopardy; and sources and amounts of matching funds; January 19, 1999 CONGRESSIONAL RECORD — SENATE S573 (2) demonstrates that the project will en- sory group consisting of individuals rep- The Neotropical Migratory Bird Con- hance the conservation of neotropical migra- resenting public and private organizations servation Act will help to ensure that tory bird species in Latin America, the Car- actively involved in the conservation of some of our most valuable and beau- ibbean, or the United States; neotropical migratory birds. tiful species of birds—those that most (3) includes mechanisms to ensure ade- (2) PUBLIC PARTICIPATION.— quate local public participation in project (A) MEETINGS.—The advisory group shall— of us take for granted, including blue- development and implementation; (i) ensure that each meeting of the advi- birds, goldfinches, robins and orioles— (4) contains assurances that the project sory group is open to the public; and may overcome the challenges posed by will be implemented in consultation with (ii) provide, at each meeting, an oppor- habitat destruction and thrive for gen- relevant wildlife management authorities tunity for interested persons to present oral erations to come. It is not widely rec- and other appropriate government officials or written statements concerning items on ognized that many North American with jurisdiction over the resources ad- the agenda. bird species once considered common dressed by the project; (B) NOTICE.—The Secretary shall provide are in decline. In fact, a total of 90 spe- (5) demonstrates sensitivity to local his- to the public timely notice of each meeting toric and cultural resources and complies of the advisory group. cies of migratory birds are listed as en- with applicable laws; (C) MINUTES.—Minutes of each meeting of dangered or threatened in the United (6) describes how the project will promote the advisory group shall be kept by the Sec- States, and another 124 species are con- sustainable, effective, long-term programs to retary and shall be made available to the sidered to be of high conservation con- conserve neotropical migratory birds; and public. cern. (7) provides any other information that the (3) EXEMPTION FROM FEDERAL ADVISORY The main cause of this decline is the Secretary considers to be necessary for eval- COMMITTEE ACT.—The Federal Advisory Com- uating the proposal. loss of critical habitat throughout our mittee Act (5 U.S.C. App.) shall not apply to hemisphere. Because these birds range (d) PROJECT REPORTING.—Each recipient of the advisory group. assistance for a project under this Act shall across international borders, it is es- SEC. 8. REPORT TO CONGRESS. submit to the Secretary such periodic re- Not later than October 1, 2002, the Sec- sential that we work with nations in ports as the Secretary considers to be nec- retary shall submit to Congress a report on Latin America and the Caribbean to es- essary. Each report shall include all informa- the results and effectiveness of the program tablish protected stopover areas during tion required by the Secretary for evaluating carried out under this Act, including rec- the progress and outcome of the project. their emigrations. This bill achieves (e) COST SHARING.— ommendations concerning how the Act that goal by fostering partnerships be- (1) FEDERAL SHARE.—The Federal share of might be improved and whether the program tween businesses, nongovernmental or- the cost of each project shall be not greater should be continued. ganizations and other nations to bring than 33 percent. SEC. 9. NEOTROPICAL MIGRATORY BIRD CON- together the capital and expertise SERVATION ACCOUNT. (2) NON-FEDERAL SHARE.— (a) ESTABLISHMENT.—There is established needed to preserve habitat throughout (A) SOURCE.—The non-Federal share re- in the Multinational Species Conservation our hemisphere. quired to be paid for a project shall not be As we begin the 106th Congress, I derived from any Federal grant program. Fund of the Treasury a separate account to (B) FORM OF PAYMENT.— be known as the ‘‘Neotropical Migratory urge my colleagues to support this leg- (i) PROJECTS IN THE UNITED STATES.—The Bird Conservation Account’’, which shall islation. It has been endorsed by the non-Federal share required to be paid for a consist of amounts deposited into the Ac- National Audubon Society, the Amer- project carried out in the United States shall count by the Secretary of the Treasury ican Bird Conservancy and the Orni- be paid in cash. under subsection (b). thological Council. I believe that it (b) DEPOSITS INTO THE ACCOUNT.—The Sec- (ii) PROJECTS IN FOREIGN COUNTRIES.—The retary of the Treasury shall deposit into the will substantially improve upon our non-Federal share required to be paid for a Account— ability to maintain critical habitat in project carried out in a foreign country may (1) all amounts received by the Secretary our hemisphere and help to halt the de- be paid in cash or in kind. in the form of donations under subsection cline of these important species. SEC. 6. DUTIES OF THE SECRETARY. (d); and In carrying out this Act, the Secretary Mr. CHAFEE. Mr. President, I am (2) other amounts appropriated to the Ac- shall— pleased to cosponsor the Neotropical count. (1) develop guidelines for the solicitation Migratory Bird Conservation Act of (c) USE.— of proposals for projects eligible for financial 1999, introduced by Senator ABRAHAM. (1) IN GENERAL.—Subject to paragraph (2), assistance under section 5; the Secretary may use amounts in the Ac- The bill would establish a program to (2) encourage submission of proposals for count, without further Act of appropriation, provide financial assistance for projects eligible for financial assistance to carry out this Act. projects to promote the conservation of under section 5, particularly proposals from (2) ADMINISTRATIVE EXPENSES.—Of amounts neotropical migratory birds in the relevant wildlife management authorities; in the Account available for each fiscal year, United States, Latin America, and the (3) select proposals for financial assistance the Secretary may expend not more than 6 that satisfy the requirements of section 5, Caribbean. An identical bill, which I percent to pay the administrative expenses also cosponsored, was approved by the giving preference to proposals that address necessary to carry out this Act. conservation needs not adequately addressed (d) ACCEPTANCE AND USE OF DONATIONS.— Senate during the last Congress, but by existing efforts and that are supported by The Secretary may accept and use donations failed in the House for reasons unre- relevant wildlife management authorities; to carry out this Act. Amounts received by lated to the bill. and the Secretary in the form of donations shall Each autumn, some 5 billion birds (4) generally implement this Act in accord- be transferred to the Secretary of the Treas- from 500 species migrate between their ance with its purposes. ury for deposit into the Account. breeding grounds in North America and SEC. 7. COOPERATION. SEC. 10. AUTHORIZATION OF APPROPRIATIONS. (a) IN GENERAL.—In carrying out this Act, tropical habitats in the Caribbean, There is authorized to be appropriated to Central and South America. These the Secretary shall— the Account to carry out this Act $8,000,000 (1) support and coordinate existing efforts for each of fiscal years 2000 through 2003, to neotropical migrants—or New World to conserve neotropical migratory bird spe- remain available until expended, of which tropical migrants—are birds that mi- cies, through— not less than 50 percent of the amounts made grate between the biogeographic region (A) facilitating meetings among persons available for each fiscal year shall be ex- stretching across Mexico, Central involved in such efforts; pended for projects carried out outside the America, much of the Caribbean, and (B) promoting the exchange of information United States. among such persons; the northern part of South America. (C) developing and entering into agree- Mr. DASCHLE. Mr. President, it is The natural challenges facing these ments with other Federal agencies, foreign, my pleasure today to join with my col- migratory birds are profound. These State, and local governmental agencies, and leagues to introduce the Neotropical challenges have been exacerbated by nongovernmental organizations; and Migratory Bird Conservation Act. human-induced impacts, particularly (D) conducting such other activities as the First, let me commend my colleague, the continuing loss of habitat in the Secretary considers to be appropriate; and Senator ABRAHAM, for all of his work Caribbean and Latin America. As a re- (2) coordinate activities and projects under to develop this legislation. This bill ad- sult, populations of migratory birds this Act with existing efforts in order to en- dresses some of the critical threats to have declined generally in recent hance conservation of neotropical migratory wildlife habitat and species diversity bird species. years. (b) ADVISORY GROUP.— and demonstrates his commitment, While there are numerous efforts un- (1) IN GENERAL.—To assist in carrying out which I strongly share, to solving the derway to protect these species and this Act, the Secretary may convene an advi- many challenges we face in this regard. their habitat, they generally focus on S574 CONGRESSIONAL RECORD — SENATE January 19, 1999 specific groups of migratory birds or locked and loaded; twenty-four percent cally, or electromechanically operated com- specific regions in the Americas. There of children between the ages of 10 and bination lock, is designed to prevent the fire- is a need for a more comprehensive pro- 17 say that they can gain access to a arm from being discharged without first de- gram to address the varied and signifi- gun in their home; and the Centers for activating or removing the device by means of a key or mechanically, electronically, or cant threats facing the numerous spe- Disease Control estimate that almost electromechanically operated combination cies of migratory birds across their 1.2 million elementary school-aged lock; range. children return from school to a home ‘‘(ii) if incorporated into the design of a Frequently there is little, if any, co- where there is no adult supervision, firearm, is designed to prevent discharge of ordination among the existing pro- but at least one firearm. the firearm by any person who does not have grams, nor is there any one program That is not only wrong, it is unac- access to the key or other device designed to that serves as a link among them. A ceptable. unlock the mechanism and thereby allow broader, more holistic approach would Our legislation will help address this discharge of the firearm; or problem. It is simple, effective and ‘‘(iii) is a safe, gun safe, gun case, lock box, bolster existing conservation efforts or other device that is designed to store a and programs, fill the gaps between straightforward. It requires that a firearm and that is designed to be unlocked these programs, and promote new ini- child safety device—or trigger lock—be only by means of a key, a combination, or tiatives. sold with every handgun. These devices other similar means; and The bill we are introducing today en- vary in form, but the most common re- ‘‘(B) that is approved by a licensed fire- compasses this new approach. It man- semble a padlock that wraps around arms manufacturer for use on the handgun dates a program to promote voluntary, the gun trigger and immobilizes it. with which the device or locking mechanism collaborative partnerships among Fed- Trigger locks are already used by tens is sold, delivered, or transferred.’’. eral, State, and private organizations. of thousands of responsible gun owners (b) UNLAWFUL ACTS.— (1) IN GENERAL.—Section 922 of title 18, The Federal share can be no more than to protect their firearms from unau- United States Code, is amended by inserting 33 percent. The non-Federal share for thorized use, and they can be pur- after subsection (y) the following: projects in the U.S. must be paid in chased in virtually any gun store for ‘‘(z) LOCKING DEVICES.— cash, while in projects outside the U.S., less than 10 dollars. ‘‘(1) IN GENERAL.—Except as provided in the non-Federal share may be entirely This measure gained momentum last paragraph (2), it shall be unlawful for any li- in-kind contributions. The Secretary of Congress, falling short by just one vote censed manufacturer, licensed importer, or the Interior may establish an advisory in the Judiciary Committee. Moreover, licensed dealer to sell, deliver, or transfer group to assist in implementing the in part as a result of our proposal, a any handgun to any person other than a li- legislation. The success of this initia- majority of the largest handgun manu- censed manufacturer, licensed importer, or licensed dealer, unless the transferee is pro- tive will depend on close coordination facturers in the United States agreed vided with a locking device for that hand- with public and private organizations to voluntarily include safety locks gun. involved in the conservation of migra- with each handgun they manufacture. ‘‘(2) EXCEPTIONS.—Paragraph (1) does not tory birds. The bill authorizes up to $8 Despite this unprecedented voluntary apply to— million annually for appropriations, of step, though, our legislation is still ‘‘(A) the— which no less than 50 percent can be needed. Here’s why: because some man- ‘‘(i) manufacture for, transfer to, or posses- spent for projects outside the U.S. ufacturers appear to be dragging their sion by, the United States or a State or a de- I believe that this bill is a much feet—an October 1998 study indicated partment or agency of the United States, or a State or a department, agency, or political needed initiative that will fill a great that eighty percent of the handgun subdivision of a State, of a firearm; or void in conservation of our nation’s makers who signed onto the voluntary ‘‘(ii) transfer to, or possession by, a law en- wildlife. I urge my colleagues to co- agreement were not yet providing safe- forcement officer employed by an entity re- sponsor it. ty locks. And even if they do comply, ferred to in clause (i) of a firearm for law en- Thank you, Mr. President. I yield the many handguns would likely still not forcement purposes (whether on or off duty); floor. be covered because too many other or manufacturers have refused to sign ‘‘(B) the transfer to, or possession by, a rail By Mr. KOHL: onto our agreement. police officer employed by a rail carrier and S 149. A bill to amend chapter 44 of certified or commissioned as a police officer Mr. President, this legislation is nec- under the laws of a State of a firearm for title 18, United States Code, to require essary to ensure that safety locks are the provision of a child safety lock in purposes of law enforcement (whether on or provided with all handguns, and to off duty).’’. connection with the transfer of a hand- keep the pressure on handgun manufac- (2) EFFECTIVE DATE.—Section 922(y) of title gun; to the Committee on the Judici- turers to put safety first. We already 18, United States Code, as added by this sub- ary. protect children by requiring that seat section, shall take effect 180 days after the CHILD SAFETY LOCK ACT OF 1999 belts be installed in all automobiles date of enactment of this Act. Mr. KOHL. Mr. President, today I in- and that childproof safety caps be pro- (c) LIABILITY; EVIDENCE.— troduce the Child Safety Lock Act of vided on medicine bottles. We should (1) LIABILITY.—Nothing in this section shall be construed to— 1999, along with Senators CHAFEE, be no less vigilant when it comes to (A) create a cause of action against any FEINSTEIN, BOXER and DURBIN. Our bi- gun safety. firearms dealer or any other person for any partisan measure will save children’s Mr. President, I ask unanimous con- civil liability; or lives by reducing the senseless trage- sent that the full text of the bill be (B) establish any standard of care. dies that result when improperly printed in the RECORD. (2) EVIDENCE.—Notwithstanding any other stored and unlocked handguns come There being no objection, the bill was provision of law, evidence regarding compli- within the reach of children. ordered to be printed in the RECORD, as ance or noncompliance with the amendments Each year, nearly 500 children and follows: made by this section shall not be admissible as evidence in any proceeding of any court, teenagers are killed in firearms acci- S. 149 dents, and every year 1,500 more chil- agency, board, or other entity, except with Be it enacted by the Senate and House of Rep- respect to an action to enforce this section. dren use firearms to commit suicide. resentatives of the United States of America in (3) RULE OF CONSTRUCTION.—Nothing in this Additionally, about 7,000 violent juve- Congress assembled, subsection shall be construed to bar a gov- nile crimes are committed annually SECTION 1. SHORT TITLE. ernmental action to impose a penalty under with guns which children take from This Act may be cited as the ‘‘Child Safety section 924(p) of title 18, United States Code, their own homes. Safety locks can be Lock Act of 1999’’. for a failure to comply with section 922(y) of effective in preventing at least some of SEC. 2. CHILD SAFETY LOCKS. that title. these incidents. (a) DEFINITIONS.—Section 921(a) of title 18, (d) CIVIL PENALTIES.—Section 924 of title The sad truth is that we are inviting United States Code, is amended by adding at 18, United States Code, is amended— (1) in subsection (a)(1), by striking ‘‘or (f)’’ disaster because guns too often are not the end the following: ‘‘(35) The term ‘locking device’ means a de- and inserting ‘‘(f), or (p)’’; and being properly stored away from chil- vice or locking mechanism— (2) by adding at the end the following: dren. Nearly 100 million privately- ‘‘(A) that— ‘‘(p) PENALTIES RELATING TO LOCKING DE- owned firearms are stored unlocked, ‘‘(i) if installed on a firearm and secured by VICES.— with 22 million of these guns left un- means of a key or a mechanically, electroni- ‘‘(1) IN GENERAL.— January 19, 1999 CONGRESSIONAL RECORD — SENATE S575 ‘‘(A) SUSPENSION OR REVOCATION OF LI- ellite safety services after the privat- The legislation I am introducing will CENSE; CIVIL PENALTIES.—With respect to ization of the business operations of enable a smooth transition to the new each violation of section 922(y)(1) by a li- the International Mobile Satellite Or- structure. It contains two major provi- censee, the Secretary may, after notice and ganization, and for other purposes; to sions. First, it authorizes the President opportunity for hearing— the Committee on Commerce, Science, ‘‘(i) suspend or revoke any license issued to to maintain U.S. membership in IMSO the licensee under this chapter; or and Transportation. after restructuring to ensure the con- ‘‘(ii) subject the licensee to a civil penalty INTERNATIONAL MARITIME SATELLITE tinued provision of global maritime in an amount equal to not more than $10,000. TELECOMMUNICATIONS ACT AMENDMENTS distress and safety satellite commu- ‘‘(B) REVIEW.—An action of the Secretary Mr. SARBANES. Mr. President, nications services. Second, it repeals under this paragraph may be reviewed only today I am introducing legislation to those provisions of the International as provided in section 923(f). authorize continued U.S. participation Maritime Satellite Telecommuni- ‘‘(2) ADMINISTRATIVE REMEDIES.—The sus- in the International Mobile Satellite cations Act that will be rendered obso- pension or revocation of a license or the im- Organization, currently known as position of a civil penalty under paragraph lete by the restructuring of Inmarsat, ‘‘Inmarsat’’, during and after its re- including all those relating to (1) does not preclude any administrative structuring, scheduled to take place remedy that is otherwise available to the COMSAT’s role as the United States’ Secretary.’’. April 1. The United States is currently signatory. The bill’s provisions will a member of this organization, but its take effect on the date that Inmarsat By Mr. WYDEN: structure and functions are slated for transfers its commercial operations to S. 150. A bill to the relief of Marina significant reform. Rather than actu- the new corporation. Khalina and her son, Albert Miftakhov; ally owning and operating mobile sat- Mr. President, I urge my colleagues to the Committee on the Judiciary. ellite telecommunications facilities, to join me in support of this measure the intergovernmental institution will PRIVATE RELIEF BILL and ask unanimous consent that a copy Mr. WYDEN. Mr. President, today I retain the much more limited role of of this legislation be included in the overseeing the provision of global mar- introduce a measure to bring critically RECORD. needed relief to Marina Khalina and itime distress and safety services, en- There being no objection, the bill was suring that this important function is her son, Albert Miftakhov, who suffers ordered to be printed in the RECORD, as carried out properly and effectively from cerebral palsy. Marina and Albert follows: under contract. U.S. participation in are Russian immigrants who have the organization—which will keep the S. 151 made a new home for themselves in the same name but change its acronym to Be it enacted by the Senate and House of Rep- state of Oregon. They love their new ‘‘IMSO’’—will not require a U.S. finan- resentatives of the United States of America in Congress assembled, life in America, but they face deporta- cial contribution and will not impose SECTION 1. CONTINUING PROVISION OF GLOBAL tion unless Congress steps in and helps any new legal obligations upon the them become citizens of this country. SATELLITE SAFETY SERVICES U.S. government. Privatization of AFTER PRIVATIZATION OF BUSINESS Marina and Albert have been valu- Inmarsat’s commercial satellite busi- OPERATIONS OF INTERNATIONAL able members of their community in ness is an objective broadly shared by MOBILE SATELLITE ORGANIZATION. Oregon and would make model citizens. the legislative and executive branches, (a) AUTHORITY.—The International Mari- They are both people of exceptional time Satellite Telecommunications Act (47 American businesses, COMSAT, which U.S.C. 751 et seq.) is amended by adding at moral character. Neither has been ar- is the U.S. signatory entity, and the rested or convicted of any crime. Al- the end the following: international community. ‘‘GLOBAL SATELLITE SAFETY SERVICES AFTER though Albert often has had to miss To give some brief background, school for medical operations, therapy, PRIVATIZATION OF BUSINESS OPERATIONS OF Inmarsat was established in 1979 to INMARSAT and other treatments, he consistently serve the global maritime industry by ‘‘SEC. 506. In order to ensure the continued has been a good student. Marina has developing satellite communications provision of global maritime distress and worked tirelessly in the United States for ship management and distress and safety satellite telecommunications services to support her family and to cover her safety applications. Over the past 20 after the privatization of the business oper- son’s staggering medical costs, which years, Inmarsat has expanded both in ations of INMARSAT, the President may will include additional surgery in the terms of membership and mission. The maintain on behalf of the United States future. Through hard work, determina- intergovernmental organization now membership in the International Mobile Sat- tion, and courage, Marina has made counts 85 member countries and has ex- ellite Organization.’’. (b) REPEAL OF SUPERSEDED AUTHORITY.— sure that Albert receives the medical panded into land-mobile and aeronauti- (1) REPEAL.—That Act is further amended care he requires. cal communications. by striking sections 502, 503, 504, and 505 (47 Forcibly removing them and sending Inmarsat’s governing bodies, the As- U.S.C. 751, 752, 753, and 757). them back to Russia would result in sembly of Parties and the Inmarsat (2) EFFECTIVE DATE.—The amendments extreme hardship for both of them and Council, have reached an agreement to made by paragraph (1) shall take effect on would make it virtually impossible for restructure the organization, a move the date on which the International Mobile Albert to receive proper medical atten- that has been strongly supported and Satellite Organization ceases to operate di- tion. Albert would be unable to lead a encouraged by the United States. This rectly a global mobile satellite system. restructuring will shift Inmarsat’s normal life due to the current inability By Mr. MOYNIHAN: of Russian society to understand and commercial activities out of the inter- S. 152. A bill to amend the Internal accommodate disabled persons. Even governmental organization and into a Revenue Code of 1986 to increase the the most basic medical treatment, sur- broadly-owned public corporation by tax on handgun ammunition, to impose next spring. The new corporation will gical intervention and physical therapy the special occupational tax and reg- acquire all of Inmarsat’s operational would be either unavailable or ex- istration requirements on importers assets, including its satellites, and will tremely difficult to obtain in Russia. and manufacturers of handgun ammu- assume all of Inmarsat’s operational Although life has not been easy for nition, and for other purposes; to the functions. All that will remain of the Marina and Albert, they have both Committee on Finance. shown bravery in the face of adversity. intergovernmental institution is a REAL COST OF DESTRUCTION AMMUNITION ACT This bill will allow Marina and Albert scaled-down secretariat with a small to stay in the United States so that Al- staff to ensure that the new corpora- bert can receive the care he needs to tion continues to meet certain public By Mr. MOYNIHAN: lead a normal life. I urge you to sup- service obligations, such as the Global S. 153. A bill to prohibit the use of port this legislation. Maritime Distress and Safety System certain ammunition, and for other pur- (GMDSS). It is important to U.S. inter- poses; to the Committee on the Judici- By Mr. SARBANES: ests that we participate in the over- ary. S. 151. A bill to amend the Inter- sight of this function, as well as be DESTRUCTIVE AMMUNITION PROHIBITION ACT OF national Maritime Satellite Tele- fully represented in the organization 1999 communications Act to ensure the con- throughout the process of privatiza- tinuing provision of certain global sat- tion. By Mr. MOYNIHAN: S576 CONGRESSIONAL RECORD — SENATE January 19, 1999

S. 154. A bill to amend title 18, band of now Congresswoman CAROLYN ducing crime by restricting access to United States Code, with respect to the MCCARTHY and injuring her son. That ammunition. Finally, it would amend licensing of ammunition manufactur- same month, it was also used in the title 18 of the United States Code to ers, and for other purposes; to the Com- shooting of Officer Jason E. White of raise the application fee for a license mittee on the Judiciary. the District of Columbia Metropolitan to manufacture certain calibers of am- HANDGUN AMMUNITION CONTROL ACT OF 1999 Police Department, just 15 blocks from munition. the Capitol. While there are enough handguns in By Mr. MOYNIHAN: I first learned of the Black Talon in circulation to last well into the 22nd S. 155. A bill to provide for the collec- a letter I received from Dr. E.J. Galla- century, there is perhaps only a 4-year tion and dissemination of information gher, director of Emergency Medicine supply of ammunition. But how much on injuries, death, and family dissolu- at Albert Einstein College of Medicine of what kind of ammunition? Where tion due to bullet-related violence, to at the Municipal Hospital Trauma Cen- does it come from? Where does it go? require the keeping of records with re- ter in the Bronx. Dr. Gallagher wrote There are currently no reporting re- spect to dispositions of ammunition, that he has never seen a more lethal quirements for manufacturers or im- and to increase taxes on certain bul- projectile. On November 3, 1993, I intro- porters of ammunition; earlier report- lets; to the Committee on Finance. duced a bill to tax the Black Talon at ing requirements were repealed in 1986. VIOLENT CRIME CONTROL ACT OF 1999 10,000 percent. Nineteen days later, The Federal Bureau of Investigation’s Olin Corp., the manufacturer of the annual Uniform Crime Reports, based Black Talon, announced that it would on information provided by local law By Mr. MOYNIHAN: S. 156. A bill to amend chapter 44 of withdraw sale of the bullet to the gen- enforcement agencies, does not record title 18, United States Code, to prohibit eral public. Unfortunately, the 103rd the caliber, type, or quantity of ammu- the manufacture, transfer, or importa- Congress came to a close without the nition used in crime. In short, our data tion of .25 caliber and .32 caliber and 9 bill’s having won passage. base is woefully inadequate. As a result, there is nothing in law to I supported the Brady law, which re- millimeter ammunition; to the Com- prevent the reintroduction of this per- quires a waiting period before the pur- mittee on the Judiciary. nicious bullet, nor is there any existing chase of a handgun, and the recent ban VIOLENT CRIME REDUCTION ACT OF 1999 impediment to the sale of similar on semi-automatic weapons. But while rounds that might be produced by an- the debate over gun control continues, By Mr. MOYNIHAN: other manufacturer. So today I re- I offer another alternative: Ammuni- S. 157. A bill to amend the Internal introduce the bill to tax the Black tion control. After all, as I have said Revenue Code of 1986 to tax 9 millime- Talon as well as a bill to prohibit the before, guns do not kill people; bullets ter, .25 caliber, and .32 caliber bullets; sale of the Black Talon to the public. do. to the Committee on Finance. Both bills would apply to any bullet Ammunition control is not a new REAL COST OF HANDGUN AMMUNITION ACT OF with the same physical characteristics idea. In 1982 Phil Caruso of the New 1999 as the Black Talon. York City Patrolmen’s Benevolent As- It has been estimated that the cost of sociation asked me to do something By Mr. MOYNIHAN: hospital services for treating bullet-re- about armor-piercing bullets. Jacketed S. 158. A bill to amend title 18, lated injuries is $1 billion per year, in tungsten or other materials, these United States Code, to regulate the with the total cost to the economy of rounds could penetrate four police flak manufacture, importation, and sale of such injuries approximately $14 billion. jackets and five Los Angeles County ammunition capable of piercing police We can ill afford further increases in telephone books. They have no sport- body armor; to the Committee on the this number, but this would surely be ing value. I introduced legislation, the Judiciary. the result if bullets with the destruc- Law Enforcement Officers Protection LAW ENFORCEMENT OFFICERS PROTECTION tive capacity of the Black Talon are al- Act, to ban the cop-killer bullets in the AMENDMENT ACT OF 1999 lowed onto the streets. 97th, 98th and 99th Congresses. It en- Mr. MOYNIHAN. Mr. President, I rise Mr. President, despite the fact that joyed the overwhelming support of law today to introduce a series of bills the national crime rate has decreased enforcement groups and, ultimately, aimed at curtailing gun related vio- in recent months, the number of deaths tacit support from the National Rifle lence, one of the leading causes of and injuries caused by bullet wounds is Association. It was finally signed into death in this country. These bills still at an unconscionable level. It is law by President Reagan on August 28, launch a two-prong assault. The first time we take meaningful steps to put 1986. seeks to outlaw certain types of ammu- an end to the massacres that occur The crime bill enacted in 1994 con- nition that have no purpose other than daily as a result of gun violence. How tained my amendment to broaden the killing people. The second imposes better a beginning than to go after the 1986 ban to cover new thick steel-jack- heavy taxes on these same deadly cat- most insidious culprits of this vio- eted armor-piercing rounds. egories by making them prohibitively lence? I urge my colleagues to support Our cities are becoming more aware expensive. Similarly, I am proposing these measures and to prevent these of the benefits to be gained from am- that we commission an epidemiological bullets from appearing on the market. munition control. The District of Co- study on bullet-related violence in this My third measure, the Handgun Am- lumbia and some other cities prohibit a country and that we enhance the safe- munition Control Act of 1999, intro- person from possessing ammunition ty of this nation’s police officers by duces a measure to improve our infor- without a valid license for a firearm of promulgating performance standards mation about the regulation and crimi- the same caliber or gauge as the am- for armor piercing ammunition. nal use of ammunition and to prevent munition. Beginning in 1990, the city of My first two bills are called the De- the irresponsible production of ammu- Los Angeles banned the sale of all am- structive Ammunition Prohibition Act nition. This bill has three components. munition 1 week prior to Independence of 1999 and the Real Cost of Destructive First, it would require importers and Day and New Year’s Day in an effort to Ammunition Act of 1999. manufacturers of ammunition to keep reduce injuries and deaths caused by Some of my colleagues may remem- records and submit an annual report to the firing of guns into the air. And in ber the Black Talon. It is a hollow- the Bureau of Alcohol, Tobacco and September 1994, the city of Chicago be- tipped bullet, singular among handgun Firearms [BATF] on the disposition of came the first in America to ban the ammunition in its capacity for destruc- ammunition, including the amount, sale of all handgun ammunition. tion. Upon impact with human tissue, caliber and type of ammunition im- Such efforts are laudable. But they the bullet produces razor-sharp radial ported or manufactured. Second, it are isolated attempts to cure what is in petals that produce a devastating would require the Secretary of the truth a national disease. We need to do wound. It is the very same bullet that Treasury, in consultation with the Na- more, but to do so, we need informa- a crazed gunman fired at unsuspecting tional Academy of Sciences, to conduct tion to guide policy making. This bill passengers on a Long Island Railroad a study of ammunition use and make would fulfill that need by requiring an- train in December 1993, killing the hus- recommendations on the efficacy of re- nual reports to BATF by manufactures January 19, 1999 CONGRESSIONAL RECORD — SENATE S577 and importers and by directing a study duced legislation to ban or tax these legislative mandate that all London by the National Academy of Sciences. pernicious bullets. As the terrible gun- water companies filter their water by We also need to encourage manufactur- shot death toll in the United States 1857. Cholera epidemics subsided. Now ers of ammunition to be more respon- continues unabated, so too does the treatment of sewage prevents cholera sible. By substantially increasing ap- need for these bills, which, by keeping from entering our rivers and lakes, and plication fees for licenses to manufac- these bullets out of the hands of crimi- the disinfection of drinking water turer .25 caliber, .32 caliber, and 9-mm nals, would save a significant number makes water distribution systems un- ammunition, this bill would discourage of lives. inhabitable for cholera vibrio, identi- the reckless production of unsafe am- The number of Americans killed or fied by Robert Koch as the causative munition or ammunition which causes wounded each year by bullets dem- agent 26 years after Snow’s study. excessive damage. onstrates their true cost to American In 1900, Walter Reed identified mos- My fourth measure provides a com- society. Just look at the data. quitos as the carriers of yellow fever. prehensive way of addressing the epi- The lifetime risk of death from homi- Subsequent mosquito control efforts by demic proportions of violence in Amer- cide in U.S. males is 1 in 164, about the another U.S. Army doctor, William ica. same as the risk of death in battle Gorgas, enabled the United States to By including two different crime-re- faced by U.S. servicemen in the Viet- complete the Panama Canal. The lated provisions, my bill attacks the nam war. For black males, the lifetime French failed because their workers crime epidemic on more than just one risk of death from homicide is 1 in 28, were too sick from yellow fever to front. If we are truly serious about con- twice the risk of death in battle faced work. Now that it is known that yellow fronting our Nation’s crime problem, by Marines in Vietnam. fever is caused by a virus, vaccines are we must learn more about the nature As noted by Susan Baker and her col- used to eliminate the spread of the dis- of the epidemic of bullet-related vio- leagues in the book Epidemiology and ease. lence and ways to control it. To do Health Policy, edited by Sol Levine and These pioneering epidemiology suc- this, we must require records to be Abraham Lilienfeld, there is a correla- cess stories showed the world that kept on the disposition of ammunition. tion between rates of private ownership epidemics require an interaction be- In October 1992, the Senate Finance of guns and gun-related death rates; tween three things: the host—(the per- Committee received testimony that guns cause two-thirds of family homi- son who becomes sick or, in the case of public health and safety experts have, cides, and small, easily concealed bullets, the shooting victim); the independently, concluded that there is weapons comprise the majority of guns agent—(the cause of sickness, or the an epidemic of bullet-related violence. used for homicides, suicides and unin- bullet); and the environment—(the set- The figures are staggering. tentional death. In 1995, bullets were used in the mur- ting in which the sickness occurs or, in Baker states that: ders of 23,673 people in the United the case of bullets, violent behavior). States. By focusing on bullets, and not * * * these facts of the epidemiology of Interrupt this epidemiological triad firearm-related deaths and injuries have im- guns, we recognize that much like nu- and you reduce or eliminate disease portant implications. Combined with their and injury. clear waste, guns remain active for lethality, the widespread availability of eas- centuries. With minimum care, they do How might this approach apply to ily concealed handguns for impetuous use by the control of bullet-related injury and not deteriorate. However, bullets are people who are angry, drunk, or frightened consumed. Estimates suggest we have appears to be a major determinant of the death? Again, we are contemplating only a 4-year’s supply of them. high firearm death rate in the United States. something different from gun control. Not only am I proposing that we tax Each contributing factor has implications There is a precedent here. In the mid- bullets used disproportionately in for prevention. Unfortunately, issues related dle of this century it was recognized crimes—9 millimeter, .25 and .32 caliber to gun control have evoked such strong sen- that epidemiology could be applied to timents that epidemiologic data are rarely automobile death and injury. From a bullets—I also believe we must set up a employed to good advantage. Bullet Death and Injury Control Pro- governmental perspective, this hypoth- Strongly held views on both sides of gram within the Centers for Disease esis was first adopted in 1959, late in the gun control issue have made the Control’s National Center for Injury the administration of Gov. Averell Har- subject difficult for epidemiologists. I Prevention and Control. This Center riman of New York State. In the 1960 would suggest that a good deal of en- will enhance our knowledge of the dis- Presidential campaign, I drafted a tribution and status of bullet-related ergy is wasted in this never-ending de- statement on the subject which was re- death and injury and subsequently bate, for gun control as we know it leased by Senator John F. Kennedy as make recommendations about the ex- misses the point. We ought to focus on part of a general response to inquiries tent and nature of bullet-related vio- the bullets, not the guns. from the American Automobile Asso- I would remind the Senate of our ex- lence. ciation. Then Senator Kennedy stated: So that the Center would have sub- perience in controlling epidemics. Al- Traffic accidents constitute one of the stantive information to study and ana- though the science of epidemiology greatest, perhaps the greatest of the nation’s lyze, this bill also requires importers traces its roots to antiquity—Hippoc- public health problems. They waste as much and manufacturers of ammunition to rates stressed the importance of con- as 2 percent of our gross national product keep records and submit an annual re- sidering environmental influences on every year and bring endless suffering. The human diseases—the first modern epi- new highways will do much to control the port to the Bureau of Alcohol, Tobacco, rise of the traffic toll, but by themselves and Firearms [BATF] on the disposi- demiological study was conducted by James Lind in 1747. His efforts led to they will not reduce it. A great deal more in- tion of ammunition. Currently, import- vestigation and research is needed. Some of ers and manufacturers of ammunition the eventual control of scurvy. It this has already begun in connection with are not required to do so. wasn’t until 1795 that the British Navy the highway program. It should be extended My next two bills, the Violent Crime accepted his analysis and required until highway safety research takes its place Reduction Act of 1999 and the Real limes in shipboard diets. Most solu- as an equal of the many similar programs of Cost of Handgun Ammunition Act of tions are not perfect. Disease is rarely health research which the federal govern- 1999, ban or heavily tax .25 caliber, .32 eliminated. But might epidemiology be ment supports. caliber, and 9 mm ammunition. These applied in the case of bullets to reduce Experience in the 1950’s and early calibers of bullets are used dispropor- suffering? I believe so. 1960’s prior to passage of the Motor Ve- tionately in crime. They are not sport- In 1854 John Snow and William Farr hicle Safety Act, showed that traffic ing or hunting rounds, but instead are collected data that clearly showed safety enforcement campaigns designed the bullets of choice for drug dealers cholera was caused by contaminated to change human behavior did not im- and violent felons. Every year they drinking water. Snow removed the han- prove traffic safety. In fact, the death contribute overwhelmingly to the per- dle of the Broad Street pump in Lon- and injury toll mounted. I was Assist- vasive loss of life caused by bullet don to prevent people from drawing ant Secretary of Labor in the mid- wounds. water from this contaminated water 1960’s when Congress was developing Today marks the fifth time in as source and the disease stopped in that the Motor Vehicle Safety Act, and I many Congresses that I have intro- population. His observations led to a was called to testify. S578 CONGRESSIONAL RECORD — SENATE January 19, 1999 It was clear to me and others that cent of licensed guns in New York City, body armor, commonly referred to as motor vehicle injuries and deaths could yet they are involved in one-third of all bullet-proof vests. This provision would not be limited by regulating driver be- homicides. They are not, as I have said, require the Secretary of the Treasury havior. Nonetheless, we had an epi- useful for sport or hunting. They are and the Attorney General to develop a demic on our hands and we needed to used for violence. If we fail to confront uniform ballistics test to determine do something about it. My friend Wil- the fact that these rounds are used dis- with precision whether ammunition is liam Haddon, the first Administrator proportionately in crimes, innocent capable of penetrating police body of the National Highway Traffic Safety people will continue to die. armor. The bill also prohibits the man- Administration, recognized that auto- I have called on Congress during the ufacture and sale of any handgun am- mobile fatalities were caused not by past several sessions to ban or heavily munition determined by the Secretary the initial collision, when the auto- tax these bullets. This would not be the of the Treasury and the Attorney Gen- mobile strikes some object, but by a first time that Congress has banned a eral to have armor-piercing capability. second collision, in which energy from particular round of ammunition. In Mr. President, it has been seventeen the first collision is transferred to the 1986, it passed legislation written by years since I first introduced legisla- interior of the car, causing the driver the Senator from New York banning tion in the Senate to outlaw armor- and occupants to strike the steering the so-called ‘‘cop-killer’’ bullet. This piercing, or ‘‘cop-killer,’’ bullets. In wheel, dashboard, or other structures round, jacketed with tungsten alloys, 1982, Phil Caruso of the Patrolman’s in the passenger compartment. The steel, brass, or any number of other Benevolent Association of New York second collision is the agent of injury metals, had been demonstrated to pen- City alerted me to the existence of a to the hosts—the car’s occupants. etrate no fewer than four police flak Teflon-coated bullet capable of pene- Efforts to make automobiles crash- jackets and an additional five Los An- trating the soft body armor police offi- cers were then beginning to wear. worthy follow examples used to control geles County phone books at one time. Shortly thereafter, I introduced the infectious disease epidemics. Reduce or In 1982, the New York Police Benevo- Law Enforcement Officers Protection eliminate the agent of injury. Seat- lent Association came to me and asked Act of 1982 to prohibit the manufac- belts, padded dashboards, and airbags me to do something about the ready ture, importation, and sale of such am- are all specifically designed to reduce, availability of these bullets. The result if not eliminate, injury caused by the munition. was the Law Enforcement Officers Pro- At that time, armor-piercing bul- agent of automobile injuries, energy tection Act, which we introduced in lets—most notably the infamous transfer to the human body during the 1982, 1983, and for the last time during ‘‘Green Hornet’’—were manufactured second collision. In fact, we’ve done the 99th Congress. In the end, with the with a solid steel core. Unlike the soft- nothing revolutionary. All of the tech- tacit support of the National Rifle As- er lead composition of most other am- nology used to date to make cars sociation, the measure passed the Con- munition, this hard steel core pre- crashworthy, including airbags, was de- gress and was signed by the President vented these rounds from deforming at veloped prior to 1970. as Public Law 99–408 on August 28, 1986. Experience shows the approach the point of impact—thus permitting In the 1994 crime bill, we enacted my the rounds to penetrate the 18 layers of worked. Of course, it could have amendment to broaden the ban to in- Kevlar in a standard-issue police vest worked better, but it worked. Had we clude new thick steel-jacketed armor- or ‘‘flak-jacket.’’ These bullets could been able to totally eliminate the piercing rounds. go through a bullet-proof vest like a agent—the second collision—the cure There are some 220 million firearms hot knife through butter. My legisla- would have been complete. Nonethe- in circulation in the United States tion simply banned any handgun am- less, merely by focusing on simple, today. They are, in essence, simple ma- munition made with a core of steel or achievable remedies, we reduced the chines, and with minimal care, remain other hard metals. traffic death and injury epidemic by 30 working for centuries. However, esti- Despite the strong support of the law percent. Motor vehicle deaths declined mates suggest that we have only a 4- enforcement community, it took four in absolute terms by 13 percent from year supply of bullets. Some 2 billion years before this seemingly non-con- 1980 to 1990, despite significant in- cartridges are used each year. At any troversial legislation was enacted into creases in the number of drivers, vehi- given time there are some 7.5 billion law. The National Rifle Association cles, and miles driven. Driver behavior rounds in factory, commercial, or initially opposed it—that is, until the is changing, too. National seatbelt household inventory. NRA realized that a large number of its usage is up dramatically, 60 percent In all cases, with the exception of members were themselves police offi- now compared to 14 percent in 1984. pistol whipping, gun-related injuries cers who strongly supported banning These efforts have resulted in some are caused not by the gun, but by the these insidious bullets. Only then did 15,000 lives saved and 100,000 injuries agents involved in the second collision: the NRA lend its grudging support. The avoided each year. the bullets. Eliminating the most dan- bill passed the Senate on March 6, 1986 We can apply that experience to the gerous rounds would not end the prob- by a vote of 97–1, and was signed by epidemic of murder and injury from lem of handgun killings. But it would President Reagan on August 8, 1986 bullets. The environment in which reduce it. A 30-percent reduction in (Public Law 99–408). these deaths and injuries occur is com- bullet-related deaths, for instance, That 1986 Act served us in good stead plex. Many factors likely contribute to would save over 10,000 lives each year for 7 years. To the best of my knowl- the rise in bullet-related injury. Here is and prevent up to 50,000 wounds. edge, not a single law enforcement offi- an important similarity with the situa- The bills I introduce today would cer was shot with an armor-piercing tion we faced 25 years ago regarding begin the process. They would begin to bullet. Unfortunately, the ammunition automobile safety. We found we could control the problem by banning or tax- manufacturers eventually found a way not easily alter the behavior of mil- ing those rounds used disproportion- around the 1986 law. By 1993, a new lions of drivers, but we could—easily— ately in crime—the .25-caliber, .32-cali- Swedish-made armor-piercing round, change the behavior of three or four ber, and 9-millimeter rounds. The bills the M39B, had appeared. This per- automobile manufacturers. Likewise, recognize the epidemic nature of the nicious bullet evaded the 1986 statute’s we simply cannot do much to change problem, building on findings con- prohibition because of its unique com- the environment—violent behavior—in tained in the June 10, 1992 issue of the position. Like most common ammuni- which gun-related injury occurs, nor do Journal of the American Medical Asso- tion, it had a soft lead core, thus ex- we know how. We can, however, do ciation which was devoted entirely to empting it from the 1986 law. But this something about the agent causing the the subject of violence, principally vio- core was surrounded by a heavy steel injury: bullets. Ban them. At least the lence associated with firearms. jacket, solid enough to allow the bullet rounds used disproportionately to My seventh bill introduces legisla- to penetrate body armor. Once again, cause death and injury; that is, the .25 tion today to amend Title 18 of the our nation’s law enforcement officers caliber, .32 caliber, and 9 millimeter United States Code to strengthen the were at risk. Immediately upon learn- bullets. These three rounds account for existing prohibition on handgun am- ing of the existence of the new Swedish the ammunition used in about 13 per- munition capable of penetrating police round, I introduced a bill to ban it. January 19, 1999 CONGRESSIONAL RECORD — SENATE S579 Another protracted series of negotia- I wish to assure the Senate that this (occupational) tax for each place of business tions ensued before we were able to up- measure would in no way infringe upon at the rate of $10,000 a year or fraction there- date the 1986 statute to cover the M39B. the rights of legitimate hunters and of. We did it with the support of law en- sportsmen. It would not affect legiti- ‘‘(2) HANDGUN AMMUNITION DEFINED.—For forcement organizations, and with purposes of this part, the term ‘handgun am- mate sporting ammunition used in ri- munition’ shall mean any centerfire car- technical assistance from the Bureau fles. It would only restrict the avail- tridge which has a cartridge case of less than of Alcohol, Tobacco and Firearms. In ability of armor-piercing rounds, for 1.3 inches in length and any cartridge case particular, James O. Pasco, Jr., then which no one can seriously claim there which is less than 1.3 inches in length.’’ the Assistant Director of Congressional is a genuine sporting use. These cop- (2) REGISTRATION OF IMPORTERS AND MANU- Affairs at BATF, worked closely with killer rounds have no legitimate uses, FACTURERS OF HANDGUN AMMUNITION.—Sec- me and my staff to get it done. The bill and they have no business being in the tion 5802 of the Internal Revenue Code of 1986 passed the Senate by unanimous con- arsenals of criminals. They are de- (relating to registration of importers, manu- sent on November 19, 1993 as an amend- facturers, and dealers) is amended— signed for one purpose; to kill police (A) in the first sentence, by inserting ‘‘, ment to the 1994 Crime Bill. officers. Despite these legislative successes, it and each importer and manufacturer of The 1986 and 1993 cop-killer bullet handgun ammunition,’’ after ‘‘dealer in fire- was becoming evident that continuing laws I sponsored kept us one step ahead arms’’, and ‘‘innovations’’ in bullet design would of the designers of new armor-piercing (B) in the third sentence, by inserting ‘‘, result in new armor-piercing rounds ca- rounds. When the legislation I have in- and handgun ammunition operations of an pable of evading the ban. It was at this troduced today is enacted—and I hope importer or manufacturer,’’ after ‘‘dealer’’. time that some of us began to explore ONFORMING MENDMENTS it will be early in the 106th Congress— (b) C A .— in earnest the idea of developing a new (1) CHAPTER HEADING.—Chapter 53 of the In- it will put them out of the cop-killer approach to banning these bullets ternal Revenue Code of 1986 (relating to ma- bullet business permanently. based on their performance, rather chine guns, destructive devices, and certain than their physical characteristics. Mr. President, I ask unanimous con- other firearms) is amended in the chapter Mind, this concept was not entirely sent that the text of the bills be print- heading by inserting ‘‘HANDGUN AMMUNI- ’’ after ‘‘ ’’. new; the idea had been discussed during ed in the RECORD. TION, CHAPTER 53— (2) TABLE OF CHAPTERS.—The heading for our efforts in 1986, but the NRA had There being no objection, the bills were ordered to be printed in the chapter 53 in the table of chapters for sub- been immovable on the subject. The title E of such Code is amended to read as RECORD, as follows: NRA’s leaders, and their constituent follows: ammunition manufactures, felt that S. 152 ‘‘Chapter 53—Handgun ammunition, machine Be it enacted by the Senate and House of Rep- any such broad-based ban based on a guns, destructive devices, and resentatives of the United States of America in bullets ‘‘performance standard’’ would certain other firearms.’’ Congress assembled, inevitably lead to the outlawing of ad- (c) EFFECTIVE DATE.— SECTION 1. SHORT TITLE. ditional classes of ammunition. They (1) IN GENERAL.—The amendments made by viewed it as a slippery slope, much as This Act may be cited as the ‘‘Real Cost of this section shall take effect on July 1, 1999. Destructive Ammunition Act’’. they have regarded the assault weap- (2) ALL TAXPAYERS TREATED AS COMMENCING SEC. 2. INCREASE IN TAX ON HANDGUN AMMUNI- IN BUSINESS ON JULY 1, 1997.—Any person en- ons ban as a slipper slope. The NRA TION. had agreed to the 1986 and 1993 laws gaged on July 1, 1999, in any trade or busi- (a) INCREASE IN MANUFACTURERS TAX.— ness which is subject to an occupational tax only because they were narrowly drawn (1) IN GENERAL.—Section 4181 of the Inter- to cover individual types of bullets. by reason of the amendment made by sub- nal Revenue Code of 1986 (relating to imposi- section (a)(1) shall be treated for purposes of And so in 1993 I asked the ATF for tion of tax on firearms) is amended— such tax as having 1st engaged in a trade of the technical assistance necessary tow (A) by striking ‘‘Shells, and cartridges.’’ business on such date. write into law an armor-piercing bullet and inserting ‘‘Shells and cartridges not tax- ‘‘performance standard.’’ At the time, able at 10,000 percent.’’, and S. 153 (B) by adding at the end the following: however, the experts at the ATF in- Be it enacted by the Senate and House of Rep- formed us that this could not be done. ‘‘ARTICLES TAXABLE AT 10,000 PERCENT.— ‘‘Any jacketed, hollow point projectile resentatives of the United States of America in They argued that it was simply too dif- which may be used in a handgun and the Congress assembled, ficult to control for the many variables jacket of which is designed to produce, upon SECTION 1. SHORT TITLE. that contribute to a bullet’s capability impact, evenly-spaced sharp or barb-like pro- This Act may be cited as the ‘‘Destructive to penetrate police body armor. We jections that extend beyond the diameter of Ammunition Prohibition Act of 1999’’. were told that it might be possible in the unfired projectile.’’ SEC. 2. DEFINITION. the future to develop a performance- (2) ADDITIONAL TAXES ADDED TO THE GEN- Section 921(a)(17) of title 18, United States based test for armor-piercing capabil- ERAL FUND.—Section 3(a) of the Act of Sep- Code, is amended by adding at the end the ity, but at the time we had to be con- tember 2, 1937 (16 U.S.C. 669b(a)), commonly following: tent with the existing content-based referred to as the ‘‘Pittman-Robertson Wild- ‘‘(D) The term ‘destructive ammunition’ life Restoration Act’’, is amended by adding means any jacketed, hollow point projectile approach. at the end the following new sentence: Well. Two years passed and the Office that may be used in a handgun and the jack- ‘‘There shall not be covered into the fund the et of which is designed to produce, upon im- of Law Enforcement Standards of the portion of the tax imposed by such section pact, sharp-tipped, barb-like projections that National Institute of Standard and 4181 that is attributable to any increase in extend beyond the diameter of the unfired Technology wrote a report describing amounts received in the Treasury under such projectile.’’. the methodology for just such a armor- section by reason of the amendments made SEC. 3. PROHIBITION. piercing bullet performance test. The by section 2(a)(1) of the Real Cost of Destruc- Section 922(a) of title 18, United States report concluded that a test to deter- tive Ammunition Act, as estimated by the Code, is amended— mine armor-piercing capability could Secretary of the Treasury.’’ (1) in paragraph (7), by inserting ‘‘or de- be developed within six months. SEC. 3. SPECIAL TAX FOR IMPORTERS, MANUFAC- structive’’ after ‘‘armor piercing’’; and So we know it can be done, if only TURERS, AND DEALERS OF HAND- (2) in paragraph (8), by inserting ‘‘or de- GUN AMMUNITION. structive’’ after ‘‘armor piercing’’. the agencies responsible for enforcing (a) IN GENERAL.— the relevant laws have the will. The (1) IMPOSITION OF TAX.—Section 5801 of the S. 154 legislation I am introducing requires Internal Revenue Code of 1986 (relating to the Secretary of the Treasury, in con- special occupational tax on importers, man- Be it enacted by the Senate and House of Rep- sultation with the Attorney General, ufacturers, and dealers of machine guns, de- resentatives of the United States of America in Congress assembled, to establish performance standards for structive devices, and certain other fire- the uniform testing of handgun ammu- arms) is amended by adding at the end the SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Handgun nition. Such an objective standard will following: ‘‘(c) SPECIAL RULE FOR HANDGUN AMMUNI- Ammunition Control Act of 1999’’. ensure that no rounds capable of pene- TION.— SEC. 2. RECORDS OF DISPOSITION OF AMMUNI- trating police body armor, regardless ‘‘(1) IN GENERAL.—On 1st engaging in busi- TION. of their composition, will ever be avail- ness and thereafter on or before July 1 of (a) AMENDMENT OF TITLE 18, UNITED STATES able to those who would use them each year, every importer and manufacturer CODE.—Section 923(g) of title 18, United against our law enforcement officers. of handgun ammunition shall pay a special States Code, is amended— S580 CONGRESSIONAL RECORD — SENATE January 19, 1999 (1) in paragraph (1)(A), by inserting after (11) there is no central responsible agency (A) statistics on bullet-related death and the second sentence the following: ‘‘Each li- for trauma, there is relatively little funding injury; censed importer and manufacturer of ammu- available for the study of bullet-related (B) studies of the epidemic nature of bul- nition shall maintain such records of impor- death and injury, and there are large gaps in let-related death and injury; and tation, production, shipment, sale, or other research programs to reduce injury; (C) data on the status of the factors, in- disposition of ammunition at the place of (12) current laws and programs relevant to cluding legal, socioeconomic, and other fac- business of such importer or manufacturer the loss of life and productivity from bullet- tors, that bear on the control of bullets and for such period and in such form as the Sec- related trauma are inadequate to protect the the eradication of the bullet-related epi- retary may by regulations prescribe. Such citizens of the United States; and demic; records shall include the amount, caliber, (13) increased research in bullet-related vi- (3) to publish information about bullet-re- and type of ammunition.’’; and olence is needed to better understand the lated death and injury and guides for the (2) by adding at the end the following: causes of such violence, to develop options practical use of epidemiological information, ‘‘(8) Each licensed importer or manufac- for controlling such violence, and to identify including publications that synthesize infor- turer of ammunition shall annually prepare and overcome barriers to implementing ef- mation relevant to national goals of under- a summary report of imports, production, fective controls. standing the bullet-related epidemic and shipments, sales, and other dispositions dur- SEC. 3. PURPOSES. methods for its control; ing the preceding year. The report shall be The purposes of this Act are— (4) to identify socioeconomic groups, com- prepared on a form specified by the Sec- (1) to increase the tax on the sale of 9 mil- munities, and geographic areas in need of retary, shall include the amounts, calibers, limeter, .25 caliber, and .32 caliber bullets study, develop a strategic plan for research and types of ammunition that were disposed (except with respect to any sale to law en- necessary to comprehend the extent and na- of, and shall be forwarded to the office speci- forcement agencies) as a means of reducing ture of bullet-related death and injury, and fied thereon not later than the close of busi- the epidemic of bullet-related death and in- determine what options exist to reduce or ness on the date specified by the Secretary.’’. eradicate such death and injury; (b) STUDY OF CRIMINAL USE AND REGULA- jury; (2) to undertake a nationally coordinated (5) to provide for the conduct of epidemio- TION OF AMMUNITION.—The Secretary of the logic research on bullet-related death and in- Treasury shall request the National Acad- effort to survey, collect, inventory, syn- thesize, and disseminate adequate data and jury through grants, contracts, cooperative emy of Sciences to— agreements, and other means, by Federal, (1) prepare, in consultation with the Sec- information for— (A) understanding the full range of bullet- State, and private agencies, institutions, or- retary, a study of the criminal use and regu- ganizations, and individuals; related death and injury, including impacts lation of ammunition; and (6) to make recommendations to Congress, on the family structure and increased de- (2) submit to Congress, not later than July the Bureau of Alcohol, Tobacco, and Fire- mands for benefit payments under provisions 31, 1998, a report with recommendations on arms, and other Federal, State, and local of the Social Security Act; the potential for preventing crime by regu- agencies on the technical management of (B) assessing the rate and magnitude of lating or restricting the availability of am- data collection, storage, and retrieval nec- change in bullet-related death and injury munition. essary to collect, evaluate, analyze, and dis- over time; SEC. 3. INCREASE IN LICENSING FEES FOR MAN- seminate information about the extent and (C) educating the public about the extent UFACTURERS OF AMMUNITION. nature of the bullet-related epidemic of of bullet-related death and injury; and Section 923(a)(1) of title 18, United States death and injury as well as options for its Code, is amended— (D) expanding the epidemiologic approach control; (1) by redesignating subparagraphs (A) to evaluate efforts to control bullet-related (7) to make recommendations to Congress, through (D) as subparagraphs (B) through death and injury and other forms of violence; the Bureau of Alcohol, Tobacco, and Fire- (E), respectively; and (3) to develop options for controlling bul- arms, and other Federal, State, and local (2) by inserting before subparagraph (B), as let-related death and injury; agencies, organizations, and individuals redesignated, the following: (4) to build the capacity and encourage re- about options for actions to eradicate or re- ‘‘(A) of .25 caliber, .32 caliber, or 9 mm am- sponsibility at the Federal, State, commu- duce the epidemic of bullet-related death and munition, a fee of $10,000 per year;’’. nity, group, and individual levels for control injury; and elimination of bullet-related death and (8) to provide training and technical assist- S. 155 injury; and ance to the Bureau of Alcohol, Tobacco, and Be it enacted by the Senate and House of Rep- (5) to promote a better understanding of Firearms and other Federal, State, and local resentatives of the United States of America in the utility of the epidemiologic approach for agencies regarding the collection and inter- Congress assembled, evaluating options to control or reduce pretation of bullet-related data; and SECTION 1. SHORT TITLE. death and injury from nonbullet-related vio- (9) to research and explore bullet-related This Act may be cited as the ‘‘Violent lence. death and injury and options for its control. Crime Control Act of 1999’’. TITLE I—BULLET DEATH AND INJURY (d) ADVISORY BOARD.— SEC. 2. FINDINGS. CONTROL PROGRAM (1) IN GENERAL.—The Center shall have an Congress finds that— SEC. 101. BULLET DEATH AND INJURY CONTROL independent advisory board to assist in set- (1) there is no reliable information on the PROGRAM. ting the policies for and directing the Pro- amount of ammunition available; (a) ESTABLISHMENT.—There is established gram. (2) importers and manufacturers of ammu- within the Centers for Disease Control’s Na- (2) MEMBERSHIP.—The advisory board shall nition are not required to keep records to re- tional Center for Injury Prevention and Con- consist of 13 members, including— port to the Federal Government on ammuni- trol (referred to as the ‘‘Center’’) a Bullet (A) 1 representative from the Centers for tion imported, produced, or shipped; Death and Injury Control Program (referred Disease Control; (3) the rate of bullet-related deaths in the to as the ‘‘Program’’). (B) 1 representative from the Bureau of Al- United States is unacceptably high and (b) PURPOSE.—The Center shall conduct re- cohol, Tobacco, and Firearms; growing; search into and provide leadership and co- (C) 1 representative from the Department (4) three calibers of bullets are used dis- ordination for— of Justice; proportionately in crime: 9 millimeter, .25 (1) the understanding and promotion of (D) 1 member from the Drug Enforcement caliber, and .32 caliber bullets; knowledge about the epidemiologic basis for Agency; (5) injury and death are greatest in young bullet-related death and injury within the (E) 3 epidemiologists from universities or males, and particularly young black males; United States; nonprofit organizations; (6) epidemiology can be used to study bul- (2) developing technically sound ap- (F) 1 criminologist from a university or let-related death and injury to evaluate con- proaches for controlling, and eliminating, nonprofit organization; trol options; bullet-related deaths and injuries; (G) 1 behavioral scientist from a university (7) bullet-related death and injury has (3) building the capacity for implementing or nonprofit organization; placed increased stress on the American fam- the options, and expanding the approaches to (H) 1 physician from a university or non- ily resulting in increased welfare expendi- controlling death and disease from bullet-re- profit organization; tures under title IV of the Social Security lated trauma; and (I) 1 statistician from a university or non- Act; (4) educating the public about the nature profit organization; (8) bullet-related death and injury have and extent of bullet-related violence. (J) 1 engineer from a university or non- contributed to the increase in medicaid ex- (c) FUNCTIONS.—The functions of the Pro- profit organization; and penditures under title XIX of the Social Se- gram shall be— (K) 1 public communications expert from a curity Act; (1) to summarize and to enhance the university or nonprofit organization. (9) bullet-related death and injury have knowledge of the distribution, status, and (3) TERMS.—Members of the advisory board contributed to increased supplemental secu- characteristics of bullet-related death and shall serve for terms of 5 years, and may rity income benefits under title XVI of the injury; serve more than 1 term. Social Security Act; (2) to conduct research and to prepare, (4) COMPENSATION OF MEMBERS.—Each (10) a tax on the sale of bullets will help with the assistance of State public health member of the Commission who is not an of- control bullet-related death and injury; departments— ficer or employee of the Federal Government January 19, 1999 CONGRESSIONAL RECORD — SENATE S581 shall be compensated at a rate equal to the ing that the information that is collected is or .32 caliber or 9 millimeter ammunition for daily equivalent of the annual rate of basic useful for the Bullet Death and Injury Con- any firearm, a fee of $10 per year.’’. pay prescribed for level IV of the Executive trol Program), may by regulation prescribe. SEC. 5. IMPORTERS. Schedule under section 5315 of title 5, United Such records shall include the amount, cali- Section 923(a)(2) of title 18, United States States Code, for each day (including travel ber, and type of ammunition.’’; and Code, is amended to read as follows: time) during which such member is engaged (2) by adding at the end the following: ‘‘(2) If the applicant is an importer— in the performance of the duties of the Com- ‘‘(8) Each licensed importer or manufac- ‘‘(A) of destructive devices, ammunition mission. All members of the Commission turer of ammunition shall annually prepare for destructive devices, or armor piercing or who are officers or employees of the United a summary report of imports, production, .25 or .32 caliber or 9 millimeter ammunition States shall serve without compensation in shipments, sales, and other dispositions dur- for any firearm, a fee of $1,000 per year; or addition to that received for their services as ing the preceding year. The report shall be ‘‘(B) of firearms other than destructive de- officers or employees of the United States. prepared on a form specified by the Sec- vices or ammunition for firearms other than (5) TRAVEL EXPENSES.—A member of the retary, in consultation with the Director of destructive devices, or ammunition other advisory board that is not otherwise in the the National Center for Injury Prevention than armor piercing or .25 or .32 caliber or 9 Federal Government service shall, to the ex- and Control of the Centers for Disease Con- millimeter ammunition for any firearm, a tent provided for in advance in appropria- trol (for the purpose of ensuring that the in- fee of $50 per year.’’. tions Acts, be paid actual travel expenses formation that is collected is useful for the and per diem in lieu of subsistence expenses Bullet Death and Injury Control Program), SEC. 6. MARKING AMMUNITION AND PACKAGES. shall include the amounts, calibers, and in accordance with section 5703 of title 5, Section 923 of title 18, United States Code, types of ammunition that were disposed of, United States Code, when the member is is amended by adding at the end the follow- and shall be forwarded to the office specified away from the member’s usual place of resi- ing: dence. thereon not later than the close of business on the date specified by the Secretary.’’. ‘‘(m) Licensed importers and licensed man- (6) CHAIR.—The members of the advisory (b) STUDY OF CRIMINAL USE AND REGULA- ufacturers shall mark all .25 and .32 caliber board shall select 1 member to serve as TION OF AMMUNITION.—The Secretary of the and 9 millimeter ammunition and packages chair. Treasury shall request the Centers for Dis- containing such ammunition for distribu- (e) CONSULTATION.—The Center shall con- ease Control to— tion, in the manner prescribed by the Sec- duct the Program required under this section (1) prepare, in consultation with the Sec- retary by regulation.’’. in consultation with the Bureau of Alcohol, retary, a study of the criminal use and regu- Tobacco, and Firearms and the Department SEC. 7. USE OF RESTRICTED AMMUNITION. lation of ammunition; and of Justice. Section 929(a)(1) of title 18, United States (2) submit to Congress, not later than July (f) AUTHORIZATION OF APPROPRIATIONS.— Code, is amended by— There are authorized to be appropriated 31, 1998, a report with recommendations on (1) inserting ‘‘, or with .25 or .32 caliber or $1,000,000 for fiscal year 2000, $2,500,000 for fis- the potential for preventing crime by regu- 9 millimeter ammunition,’’ after ‘‘possession cal year 2001, and $5,000,000 for each of fiscal lating or restricting the availability of am- of armor piercing ammunition’’; and years 2002, 2003, and 2004 for the purpose of munition. (2) inserting ‘‘, or .25 or .32 caliber or 9 mil- carrying out this section. S. 156 limeter ammunition,’’ after ‘‘armor-piercing (g) REPORT.—The Center shall prepare an Be it enacted by the Senate and House of Rep- handgun ammunition’’. annual report to Congress on the Program’s resentatives of the United States of America in SEC. 8. EFFECTIVE DATE. findings, the status of coordination with Congress assembled, other agencies, its progress, and problems This Act and the amendments made by SECTION 1. SHORT TITLE. encountered with options and recommenda- this Act shall take effect on the first day of This Act may be cited as the ‘‘Violent the first calendar month that begins more tions for their solution. The report for De- Crime Reduction Act of 1999’’. cember 31, 2000, shall contain options and than 90 days after the date of enactment of SEC. 2. UNLAWFUL ACTS. this Act. recommendations for the Program’s mission Section 922(a) of title 18, United States and funding levels for the fiscal years 2000 Code, is amended— through 2004, and beyond. (1) by in paragraph (7), by striking ‘‘and’’ S. 157 TITLE II—INCREASE IN EXCISE TAX ON at the end; Be it enacted by the Senate and House of Rep- CERTAIN BULLETS (2) by in paragraph (8), by striking the pe- resentatives of the United States of America in SEC. 201. INCREASE IN TAX ON CERTAIN BUL- riod and inserting a semicolon; and Congress assembled, LETS. (3) by adding at the end the following: SECTION 1. SHORT TITLE. (a) IN GENERAL.—Section 4181 of the Inter- ‘‘(9) for any person to manufacture, trans- nal Revenue Code of 1986 (relating to the im- fer, or import .25 or .32 caliber or 9 millime- This Act may be cited as the ‘‘Real Cost of position of tax on firearms, etc.) is amended ter ammunition, except that this paragraph Handgun Ammunition Act of 1999’’. by adding at the end the following: shall not apply to— SEC. 2. INCREASE IN TAX ON CERTAIN BULLETS. ‘‘In the case of 9 millimeter, .25 caliber, or ‘‘(A) the manufacture or importation of (a) IN GENERAL.—Section 4181 of the Inter- .32 caliber ammunition, the rate of tax under such ammunition for the use of the United nal Revenue Code of 1986 (relating to the im- this section shall be 1,000 percent.’’. States or any department or agency thereof position of tax on firearms, etc.) is amended (b) EXEMPTION FOR LAW ENFORCEMENT PUR- or any State or any department, agency, or by adding at the end the following new flush POSES.—Section 4182 of the Internal Revenue political subdivision thereof; and sentence: Code of 1986 (relating to exemptions) is ‘‘(B) any manufacture or importation for ‘‘In the case of 9 millimeter, .25 caliber, or amended by adding at the end the following: testing or for experimenting authorized by .32 caliber ammunition, the rate of tax under ‘‘(d) LAW ENFORCEMENT.—The last sentence the Secretary; and this section shall be 1,000 percent.’’ of section 4181 shall not apply to any sale ‘‘(10) for any manufacturer or importer to (not otherwise exempted) to, or for the use (b) EXEMPTION FOR LAW ENFORCEMENT PUR- sell or deliver .25 or .32 caliber or 9 millime- of, the United States (or any department, POSES.—Section 4182 of the Internal Revenue ter ammunition, except that this paragraph agency, or instrumentality thereof) or a Code of 1986 (relating to exemptions) is shall not apply to— State or political subdivision thereof (or any amended by adding at the end the following ‘‘(A) the sale or delivery by a manufacturer department, agency, or instrumentality new subsection: or importer of such ammunition for the use thereof).’’. ‘‘(d) LAW ENFORCEMENT.—The last sentence of the United States or any department or (c) EFFECTIVE DATE.—The amendments of section 4181 shall not apply to any sale made by this section shall apply to sales agency thereof or any State or any depart- (not otherwise exempted) to, or for the use after December 31, 1999. ment, agency, or political subdivision there- of, the United States (or any department, of; and TITLE III—USE OF AMMUNITION agency, or instrumentality thereof) or a ‘‘(B) the sale or delivery by a manufacturer State or political subdivision thereof (or any SEC. 301. RECORDS OF DISPOSITION OF AMMUNI- or importer of such ammunition for testing TION. department, agency, or instrumentality or for experimenting authorized by the Sec- thereof).’’ (a) AMENDMENT OF TITLE 18, UNITED STATES retary.’’. (c) EFFECTIVE DATE.—The amendments CODE.—Section 923(g) of title 18, United SEC. 3. LICENSING OF DESTRUCTIVE DEVICES. States Code, is amended— Section 923(a)(1)(A) of title 18, United made by this section shall apply to sales (1) in paragraph (1)(A), by inserting after States Code, is amended to read as follows: after December 31, 1999. the second sentence the following: ‘‘Each li- ‘‘(A) of destructive devices, ammunition censed importer and manufacturer of ammu- for destructive devices, armor piercing am- S. 158 nition shall maintain such records of impor- munition, or .25 or .32 caliber or 9 millimeter Be it enacted by the Senate and House of Rep- tation, production, shipment, sale, or other ammunition, a fee of $1,000 per year;’’. resentatives of the United States of America in disposition of ammunition at the licensee’s SEC. 4. LICENSING OF NONDESTRUCTIVE DE- Congress assembled, place of business for such period and in such VICES. form as the Secretary, in consultation with Section 923(a)(1)(C) of title 18, United SECTION 1. SHORT TITLE. the Director of the National Center for In- States Code, is amended to read as follows: This Act may be cited as the ‘‘Law En- jury Prevention and Control of the Centers ‘‘(C) of ammunition for firearms other than forcement Officers Protection Amendment for Disease Control (for the purpose of ensur- destructive devices, or armor piercing or .25 Act of 1999’’. S582 CONGRESSIONAL RECORD — SENATE January 19, 1999 SEC. 2. EXPANSION OF THE DEFINITION OF SECTION 1. JUROR FEES. essential in the plans made by L’Enfant ARMOR PIERCING AMMUNITION. Section 1871(b)(1) of title 28, United States under the direction of the first President and Section 921(a)(17)(B) of title 18, United Code, is amended by striking ‘‘of $40 per his Secretary of State. States Code, is amended— day’’ and inserting ‘‘$45 per day.’’ (1) by striking ‘‘or’’ at the end of clause (i); Washington and Jefferson might be (2) by striking the period at the end of By Mr. MOYNIHAN: disappointed at the affliction now im- clause (ii) and inserting ‘‘; or’’; and S. 160. A bill to authorize the Archi- posed on much of the Capitol Grounds (3) by adding at the end the following: tect of the Capitol to develop and im- by the automobile. ‘‘(iii) a projectile that may be used in a plement a plan to improve the Capitol Despite the ready and convenient handgun and that the Secretary of the grounds through the elimination and availability of the city’s Metrorail sys- Treasury, in consultation with the Attorney tem, an extraordinary number of Cap- General determines, pursuant to section modification of space alloted for park- ing; to the Committee on Rules and itol Hill employees drive to work. No 926(d), to be capable of penetrating body doubt many must. But must we provide armor.’’. Administration. free parking? If there is one lesson SEC. 3. DETERMINATION OF ARMOR PIERCING ARC OF PARK CAPITOL GROUNDS IMPROVEMENT CAPABILITY OF PROJECTILES. ACT OF 1999 learned from the Intermodal Surface Section 926 of title 18, United States Code, Mr. MOYNIHAN. Mr. President, just Transportation Efficiency Act of 1991, is amended by adding at the end the follow- over 98 years ago, in March 1901, the it is that free goods are always wasted. ing: Senate Committee on the District of Free parking is a most powerful incen- ‘‘(d) Not later than 1 year after the date of tive to drive to work when the alter- enactment of this subsection, the Secretary Columbia was directed by Senate Reso- shall promulgate regulations based on stand- lution to ‘‘report to the Senate plans native is to pay for public transpor- ards to be developed by the Secretary of the for the development and improvement tation. Furthermore, much as expenses Treasury, in consultation with the Attorney of the entire park system of the Dis- rise to meet income, newly provided General, for the uniform testing of projec- trict of Columbia * * * (F)or the pur- parking spaces are instantly filled. At tiles to determine whether such projectiles pose of preparing such plans the com- the foot of Pennsylvania Avenue is a are capable of penetrating National Institute scar of angle-parked cars, in parking of Justice Level II–A body armor.’’. mittee * * * may secure the services of spaces made available temporarily dur- SEC. 4. AUTHORIZATION OF APPROPRIATIONS. such experts as may be necessary for a There are authorized to be appropriated proper consideration of the subject.’’ ing construction of the Thurgood Mar- such sums as may be necessary for the Sec- And secure ‘‘such experts’’ the com- shall Federal Judiciary Building. Once retary of the Treasury and the Attorney mittee assuredly did. The Committee completed, spaces in the building’s ga- General to— formed what came to be known as the rage would be made available to Senate (1) develop and implement performance McMillan Commission, named for com- employees and Pennsylvania Avenue standards for armor piercing ammunition; mittee chairman, Senator James Mc- would be restored. Not so. The demand and for spaces has simply risen to meet the (2) promulgate regulations for performance Millan of Michigan. The Commission’s standards for armor piercing ammunition. membership was a ‘‘who’s who’’ of late available supply, and the unit block of 19th and early 20th century architec- the Nation’s main street remains a dis- By Mr. MOYNIHAN: ture, landscape design, and art: Daniel aster. S. 159. A bill to amend chapter 121 of Burnham, Frederick Law Olmsted, Jr., Today, I am introducing legislation title 28, United States Code, to increase Charles F. McKim, and Augustus St. to improve the Capitol Grounds fees paid to Federal jurors, and for Gaudens. The Commission traveled through the near-complete elimination other purposes; to the Committee on that summer to Rome, Venice, Vienna, of surface parking. As the Architect of the Judiciary. Budapest, Paris, and London, studying the Capitol eliminates these unsightly INCREASE THE FEES PAID TO FEDERAL JURORS the landscapes, architecture, and pub- lots, they will be reconstructed as pub- Mr. MOYNIHAN. Mr. President, lic spaces of the grandest cities in the lic parks, landscaped in the fashion of today I rise to introduce a bill aimed at world. The McMillan Commission re- the Capitol Grounds. I envision what I raising the fee Federal jurors are paid turned and fashioned the city of Wash- call an arc of park sweeping around the to that of $45.00 per day. According to ington as we now know it. Capitol from Second Street, Northeast, the current statute, Federal jurors are We are particularly indebted today around to the Capitol Reflecting Pool, paid $40.00 per day for the first thirty for the Commission’s preservation of and thence back to First Street, South- days of a trial and $50.00 for each day the Mall. When the members left for east. Delaware Avenue between Colum- thereafter. They also receive $3.00 a Europe, the Congress had just given bus Circle and Constitution Avenue day for transportation costs. The $40.00 the Pennsylvania Railroad a 400-foot would be closed to traffic and rebuilt as per day a juror receives for his or her wide swath of the Mall for a new sta- a pedestrian walkway, a grand pathway all day service is below the prevailing tion and trackage. It is hard to imag- to the Capitol from Union Station. minimum wage, and the daily $3.00 ine our city without the uninterrupted Finally, there is still the matter of transportation fee falls far below that stretch of greenery from the Capitol to parking. This legislation authorizes required for parking or riding a bus or the Washington Monument, but such the Architect of the Capitol to con- the subway. would have been the result. Fortu- struct underground parking facilities, These inadequate sums place an nately, when in London, Daniel as needed. These facilities, which will undue hardship on those jurors who undoubtedly be expensive, will be fi- most need compensation: the self-em- Burnham was able to convince Penn- sylvania Railroad president Cassatt nanced simply by charging for the ployed, the commissioned, the tem- parking, a legitimate user fee. porary workers, and those who work that a site on Massachusetts Avenue would provide a much grander entrance Mr. President, I ask unanimous con- for small employers often making it sent that the bill be printed in the difficult for litigants to have rep- to the city. President Cassatt assented and Daniel Burnham gave us Union RECORD. resentative jury panels. While undue There being no objection, the bill was hardship is often grounds for deferral Station. But the focus of the Commission’s ordered to be printed in the RECORD, as or excusal from jury duty, it is impor- follows: tant that we limit the financial hard- work was the District’s park system. S. 160 ship for those of our citizens engaged The Commission noted in its report: in this most important civic duty. Aside from the pleasure and the positive Be it enacted by the Senate and House of Rep- benefits to health that the people derive resentatives of the United States of America in Mr. President, I ask unanimous con- Congress assembled, sent that the text of the bill be printed from public parks, in a capital city like Washington there is a distinct use of public SECTION 1. SHORT TITLE. in the RECORD. spaces as the indispensable means of giving This Act may be cited as the ‘‘Arc of Park There being no objection, the bill was dignity to Government buildings and of mak- Capitol Grounds Improvement Act of 1999’’. ordered to be printed in the RECORD, as ing suitable connections between the great SEC. 2. CAPITOL GROUNDS IMPROVEMENT PLAN. follows: departments . . . (V)istas and axes; sites for (a) IN GENERAL.—Not later than 1 year S. 159 monuments and museums; parks and pleas- after the date of enactment of this Act, the Be it enacted by the Senate and House of Rep- ure gardens; fountains and canals; in a word Architect of the Capitol shall develop and resentatives of the United States of America in all that goes to make a city a magnificent begin implementation of a comprehensive Congress assembled, and consistent work of art were regarded as plan (referred to as the ‘‘comprehensive January 19, 1999 CONGRESSIONAL RECORD — SENATE S583 plan’’) for the improvement of the grounds of SEC. 5. AUTHORIZATION OF APPROPRIATIONS. The GAO has also reported on fair- the United States Capitol as described in sec- There are authorized to be appropriated ness in lending to the PMAs. The Fed- tion 193a of title 40, United States Code. such sums as may be necessary to carry out eral Treasury incurs approximately 9 (b) ARC OF PARK.—The comprehensive plan the provisions of this Act±. shall— percent in debt when lending to the (1) be consistent with the 1981 Report on By Mr. MOYNIHAN: PMAs, but recovers only 3.5 percent the ‘‘Master Plan for the Future Develop- S. 161. A bill to provide for a transi- from the PMAs on their outstanding ment of the Capitol Grounds and Related tion to market-based rates for power debt. This is a loss to the U.S. Treasury Areas’’ prepared in accordance with Public sold by the Federal Power Marketing of 5.5 percent on interest payments Law 94–59 (July 25, 1975); and Administrations and the Tennessee alone. It is taxpayers who are required (2) result in an ‘‘arc of park’’ sweeping to account for this interest shortfall. from Second Street, Northeast to the Capitol Valley Authority, and for other pur- Reflecting Pool to First Street, Southeast, poses; to the Committee on Energy and Mr. President, my bill would provide with the Capitol Building as its approximate Natural Resources. for full cost recovery rates for power center. POWER MARKETING ADMINISTRATION REFORM sold by the PMAs and the TVA. Under (c) DETAILS.—The comprehensive plan ACT OF 1999 the bill, PMA and TVA rates would be shall provide for, at a minimum— Mr. MOYNIHAN. Mr. President, I rise recalculated to conform to market (1) elimination of all current surface park- to introduce the Power Marketing Ad- rates and be resubmitted to the Fed- ing areas, excepting those areas which pro- ministration Reform Act of 1999, a bill vide on-street parallel parking spaces; eral Energy Regulatory Commission (2) replacement of off-street surface park- to require that the Federal Power Mar- (FERC) for approval. The bill would ing areas with public parks landscaped in a keting Administrations (PMAs) and also require that PMA and TVA trans- fashion appropriate to the United States the Tennessee Valley Authority (TVA) mission facilities are subject to open- Capitol grounds; sell electricity at market rates and re- access regulation by the FERC, and (3) reconstruction of Delaware Avenue, cover all costs. that FERC would be authorized to re- Northeast, between Columbus Circle and Mr. President, in 1935 only 15 percent vise such rates when necessary to Constitution Avenue as a thoroughfare avail- of rural Americans had access to elec- maintain a competitive environment. able principally to pedestrians as con- tricity. President Roosevelt’s adminis- templated by the Master Plan; Cooperatives and public power entities tration established the PMAs to sell will be given the right of first refusal (4) elimination of all but parallel parking power to rural Americans below mar- on Pennsylvania Avenue, between First and of PMA and TVA power at market Third Streets, Northwest; ket rates because so many rural areas prices. Revenue accrued from the re- (5) to the greatest extent practical, con- could not afford to install the trans- visal of these rates will go first to the tinuation of the Pennsylvania Avenue tree mission and generation equipment re- U.S. Treasury to recover all costs. The line onto United States Capitol Grounds and quired to provide electricity. Com- residual amount will then be disbursed implementation of other appropriate land- mencement of the massive public by formula to the Treasury to mitigate scaping measures necessary to conform works projects such as TVA filled a Pennsylvania Avenue between First and damage to the environment attributed desperate need for jobs during the De- to the operation of PMAs and the TVA, Third Streets, Northwest, to the aesthetic pression years and brought electricity guidelines adopted by the Pennsylvania Ave- and to support renewable electricity nue Development Corporation; to the many areas of our country which generating resources. lacked access to this most basic amen- (6) closure of Maryland Avenue to through Mr. President, the time has come for ity of modern life. traffic between First and Third Streets, public power to be held accountable for Southwest, consistent with appropriate ac- The PMAs served an essential func- cess to and visitor parking for the United tion in lifting our nation out of the De- the use of public dollars. I urge my col- States Botanic Garden; and pression, Mr. President, but that time leagues to join me in supporting this (7) construction of additional underground has passed. Sixty years after its incep- legislation. parking facilities, as needed, with— tion, public power is less expensive and Mr. President, I ask unanimous con- (A) the cost of construction and operation more accessible than ever before. The sent that the text of the bill be printed of such parking facilities defrayed to the in the RECORD. greatest extent practical by charging appro- discounted rates provided by public priate usage fees, including time-of-day fees; power are a benefit which goes to a rel- There being no objection, the bill was and atively few recipients at a tremendous ordered to be printed in the RECORD, as (B) the parking facilities being made avail- expense to the American taxpayer. follows: able to the general public, with priority Nearly 60 percent of Federal sales go to S. 161 given to employees of the Congress. just four states: Tennessee, Alabama, Be it enacted by the Senate and House of Rep- SEC. 3. APPLICABLE LOCAL LAW. Washington, and Oregon. PMAs have resentatives of the United States of America in (a) IN GENERAL.—Subject to subsection (b), failed to recover their operating costs the construction and operation of any im- Congress assembled, provements under this Act shall not be sub- for too long, and it is taxpayers who SECTION 1. SHORT TITLE. ject to— bear the cost of the discrepancy be- This Act may be cited as the ‘‘Power Mar- (1) any law of the District of Columbia or tween cost of generation and consumer keting Administration Reform Act of 1999’’. any State or locality relating to taxes on rates. This discrepancy has brought SEC. 2. FINDINGS AND PURPOSES. sales, real estate, personal property, special about a fiscal shortfall and significant (a) FINDINGS.—Congress finds that— assessments, uses, or any other interest or environmental damage. transaction (including Federal law); or (1) the use of fixed allocations of joint mul- Reports over past years from the tipurpose project costs and the failure to (2) any law of the District of Columbia re- General Accounting Office (GAO), the lating to use, occupancy, or construction, in- provide for the recovery of actual interest cluding building costs, permits, or inspection Congressional Budget Office (CBO), and costs and depreciation have resulted in— requirements (including Federal law). the Inspector General of the U.S. De- (A) substantial failures to recover costs (b) LIMITATION.—The Architect of the Cap- partment of Energy confirm this view. properly recoverable through power rates by itol shall comply with appropriate recog- In 1997, for instance, the GAO reported the Federal Power Marketing Administra- nized national life safety and building codes that the Bonneville Power Administra- tions and the Tennessee Valley Authority; in undertaking such construction and oper- tion, the Rural Utilities Service, and and ation. (B) the imposition of unreasonable burdens three other PMAs cost American tax- SEC. 4. RESPONSIBILITIES OF THE ARCHITECT on the taxpaying public; OF THE CAPITOL. payers $2.5 billion in fiscal year 1996. In (2) existing underallocations and under- The Architect of the Capitol— March 1998 the GAO showed that the recovery of costs have led to inefficiencies in (1) shall be responsible for the structural, Federal government incurred a net cost the marketing of Federally generated elec- mechanical, and custodial care and mainte- of $1.5 billion from electricity-related tric power and to environmental damage; nance of the facilities constructed under this activities in the Southeastern, South- and Act and may discharge such responsibilities western, and Western PMAs between (3) with the emergence of open access to directly or by contract; and 1992 and 1996. Up to $1.4 billion of the power transmission and competitive bulk (2) may permit the extension of steam and power markets, market prices will provide chilled water from the Capitol Power Plant approximately $7 billion of Federal in- the lowest reasonable rates consistent with— on a reimbursable basis to any facilities or vestment in assets derived from elec- (A) sound business principles; improvements constructed under this Act as tricity-related activities in these (B) maximum recovery of costs properly a cost of such improvements. PMAs is at risk of nonrecovery. allocated to power production; and S584 CONGRESSIONAL RECORD — SENATE January 19, 1999

(C) encouraging the most widespread use of mission, to each existing contract for the (1) IN GENERAL.—Revenue collected power marketed by the Federal Power Mar- sale or disposition of Federal power by the through market-based pricing shall be dis- keting Administrations and the Tennessee Federal Power Marketing Administration or posed of as follows: Valley Authority. the Tennessee Valley Authority to the maxi- (A) REVENUE FOR OPERATIONS, FISH AND (b) PURPOSES.—The purposes of this Act mum extent permitted by the contract. WILDLIFE, AND PROJECT COSTS.—Revenue shall are to provide for— (2) APPLICABILITY.—This section shall be remitted to the Secretary of the Treasury (1) full cost recovery rates for power sold cease to apply to a Federal Power Marketing to cover— by the Federal Power Marketing Administra- Administration or the Tennessee Valley Au- (i) all power-related operations and main- tions and the Tennessee Valley Authority; thority as of the date of termination of all tenance expenses; and commitments under any contract for the (ii) all fish and wildlife costs required (2) a transition to market-based rates for sale or disposition of Federal power that under existing treaty and legal obligations; the power. were in existence as of the date of enactment and SEC. 3. SALE OR DISPOSITION OF FEDERAL of this Act. (iii) the project investment cost pertaining POWER BY FEDERAL POWER MAR- (e) ACCOUNTING PRINCIPLES AND REQUIRE- to power production. KETING ADMINISTRATIONS AND THE MENTS.—In developing or reviewing the rates (B) REMAINING REVENUE.—Revenue that re- TENNESSEE VALLEY AUTHORITY. required by this section, the Federal Power mains after remission to the Secretary of the (a) ACCOUNTING.—Notwithstanding any Marketing Administrations, the Tennessee other provision of law, as soon as practicable Treasury under subparagraph (A) shall be Valley Authority, and the Commission shall disposed of as follows: after the date of enactment of this Act, the rely on the accounting principles and re- (i) FEDERAL BUDGET DEFICIT.—50 percent of Secretary of Energy, in consultation with quirements developed under subsection (a). the revenue shall be remitted to the Sec- the Federal Energy Regulatory Commission, (f) INTERIM RATES.—Until market pricing shall develop and implement procedures to for the sale or disposition of Federal power retary of the Treasury for the purpose of re- ensure that the Federal Power Marketing by a Federal Power Marketing Administra- ducing the Federal budget deficit. Administrations and the Tennessee Valley tion or the Tennessee Valley Authority is (ii) FUND FOR ENVIRONMENTAL MITIGATION Authority use the same accounting prin- fully implemented, the full cost recovery AND RESTORATION.—35 percent of the revenue ciples and requirements (including the ac- rates required by this section shall apply shall be deposited in the fund established counting principles and requirements with to— under paragraph (2)(A). respect to the accrual of actual interest (1) a new contract entered into after the (iii) FUND FOR RENEWABLE RESOURCES.—15 costs during construction and pending repay- date of enactment of this Act for the sale of percent of the revenue shall be deposited in ment for any project and recognition of de- power by a Federal Power Marketing Admin- the fund established under paragraph (3)(A). preciation expenses) as are applied by the istrator or the Tennessee Valley Authority; (2) FUND FOR ENVIRONMENTAL MITIGATION Commission to the electric operations of and AND RESTORATION.— public utilities. (2) a renewal after the date of enactment of (A) ESTABLISHMENT.— (b) DEVELOPMENT AND SUBMISSION OF RATES this Act of an existing contract for the sale (i) IN GENERAL.—There is established in the TO THE COMMISSION.— of power by a Federal Power Marketing Ad- Treasury of the United States a fund to be (1) IN GENERAL.—Notwithstanding any ministration or the Tennessee Valley Au- known as the ‘‘Fund for Environmental Miti- other provision of law, not later than 1 year thority. gation and Restoration’’ (referred to in this after the date of enactment of this Act and (g) TRANSITION TO MARKET-BASED RATES.— paragraph as the ‘‘Fund’’), consisting of periodically thereafter but not less fre- (1) IN GENERAL.—If the transition to full funds allocated under paragraph (1)(B)(ii). quently than once every 5 years, each Fed- cost recovery rates would result in rates (ii) ADMINISTRATION.—The Fund shall be eral Power Marketing Administration and that exceed market rates, the Secretary of administered by a Board of Directors con- the Tennessee Valley Authority shall submit Energy may approve rates for power sold by sisting of the Secretary of the Interior, the to the Federal Energy Regulatory Commis- Federal Power Marketing Administrations Secretary of Energy, and the Administrator sion a description of proposed rates for the at market rates, and the Tennessee Valley of the Environmental Protection Agency, or sale or disposition of Federal power that will Authority may approve rates for power sold their designees. ensure the recovery of all costs incurred by by the Tennessee Valley Authority at mar- (B) USE.—Amounts in the Fund shall be the Federal Power Marketing Administra- ket rates, if— available for making expenditures— tion or the Tennessee Valley Authority, re- (A) operation and maintenance costs are (i) to carry out project-specific plans to spectively, for the generation and marketing recovered, including all fish and wildlife mitigate damage to, and restore the health of the Federal power. costs required under existing treaty and of, fish, wildlife, and other environmental re- (2) COSTS TO BE RECOVERED.—The costs to legal obligations; sources that is attributable to the construc- be recovered under paragraph (1)— (B) the contribution toward recovery of in- tion and operation of the facilities from (A) shall include all fish and wildlife ex- vestment pertaining to power production is which power is generated and sold; and penditures required under treaty and legal maximized; and (ii) to cover all costs incurred in establish- obligations associated with the construction (C) purchasers of power under existing con- ing and administering the Fund. and operation of the facilities from which tracts consent to the remarketing by the (C) PROJECT-SPECIFIC PLANS.— the Federal power is generated and sold; and Federal Power Marketing Administration or (i) IN GENERAL.—The Board of Directors of (B) shall not include any cost of transmit- the Tennessee Valley Authority of the power the Fund shall develop a project-specific ting the Federal power. through competitive bidding not later than 3 plan described in subparagraph (B)(i) for (c) COMMISSION REVIEW, APPROVAL, OR years after the approval of the rates. each project that is used to generate power MODIFICATION.— (2) COMPETITIVE BIDDING.—Competitive bid- marketed by the Federal Power Marketing (1) IN GENERAL.—The Federal Energy Regu- ding shall be used to remarket power that is Administration or the Tennessee Valley Au- latory Commission shall review and either subject to, but not sold in accordance with, thority. approve or modify rates for the sale or dis- paragraph (1). (ii) USE OF EXISTING DATA, INFORMATION, position of Federal power submitted to the (h) MARKET-BASED PRICING.— AND PLANS.—In developing plans under Commission by each Federal Power Market- (1) IN GENERAL.—Not later than 2 years clause (i), the Board, to the maximum extent ing Administration and the Tennessee Valley after the date of enactment of this Act, the practicable, shall rely on existing data, in- Authority under this section, in a manner Secretary of Energy shall develop and imple- formation, and mitigation and restoration that ensures that the rates will recover all ment procedures to ensure that all power plans developed by— costs described in subsection (b)(2). sold by Federal Power Marketing Adminis- (I) the Commissioner of the Bureau of Rec- (2) BASIS FOR REVIEW.—The review by the trations and the Tennessee Valley Authority lamation; Commission under paragraph (1) shall be is sold at prices that reflect demand and sup- (II) the Director of the United States Fish based on the record of proceedings before the ply conditions within the relevant bulk and Wildlife Service; Federal Power Marketing Administration or power supply market. (III) the Administrator of the Environ- the Tennessee Valley Authority, except that (2) BID AND AUCTION PROCEDURES.—The Sec- mental Protection Agency; and the Commission shall afford all affected per- retary of Energy shall establish by regula- (IV) the heads of other Federal, State, and sons an opportunity for an additional hear- tion bid and auction procedures to imple- tribal agencies. ing in accordance with the procedures estab- ment market-based pricing for power sold (D) MAXIMUM AMOUNT.— lished for ratemaking by the Commission under any power sales contract entered into (i) IN GENERAL.—The Fund shall maintain a under the Federal Power Act (16 U.S.C. 791a by a Federal Power Marketing Administra- balance of not more than $200,000,000 in ex- et seq.). tion or the Tennessee Valley Authority after cess of the amount that the Board of Direc- (d) APPLICATION OF RATES.— the date that is 2 years after the date of en- tors of the Fund determines is necessary to (1) IN GENERAL.—Beginning on the date of actment of this Act, including power that is cover the costs of project-specific plans re- approval or modification by the Commission under contract but that is declined by the quired under this paragraph. of rates under this section, each Federal party entitled to purchase the power and re- (ii) SURPLUS REVENUE FOR DEFICIT REDUC- Power Marketing Administration and the marketed after that date. TION.—Revenue that would be deposited in Tennessee Valley Authority shall apply the (i) USE OF REVENUE COLLECTED THROUGH the Fund but for the absence of such project- rates, as approved or modified by the Com- MARKET-BASED PRICING.— specific plans shall be used by the Secretary January 19, 1999 CONGRESSIONAL RECORD — SENATE S585

of the Treasury for purposes of reducing the (l) CONTRACT RENEWAL.—Effective begin- SEC. 6. CONFORMING AMENDMENTS. Federal budget deficit. ning on the date of enactment of this Act, a (a) TRANSFERS FROM THE DEPARTMENT OF (3) FUND FOR RENEWABLE RESOURCES.— Federal Power Marketing Administration THE INTERIOR.—Section 302(a)(3) of the De- (A) ESTABLISHMENT.— shall not enter into or renew any power mar- partment of Energy Organization Act (42 (i) IN GENERAL.—There is established in the keting contract for a term that exceeds 5 U.S.C. 7152(a)(3)) is amended by striking the Treasury of the United States a fund to be years. last sentence. known as the ‘‘Fund for Renewable Re- (m) RESTRICTIONS.—Except for the Bonne- (b) USE OF FUNDS TO STUDY NONCOST-BASED sources’’ (referred to in this paragraph as the ville Power Administration, each Federal METHODS OF PRICING HYDROELECTRIC ‘‘Fund’’), consisting of funds allocated under Power Marketing Administration shall be POWER.—Section 505 of the Energy and Water paragraph (1)(B)(iii). subject to the restrictions on the construc- Development Appropriations Act, 1993 (42 (ii) ADMINISTRATION.—The Fund shall be tion of transmission and additional facilities U.S.C. 7152 note; 106 Stat. 1343) is repealed. administered by the Secretary of Energy. that are established under section 5 of the SEC. 7. APPLICABILITY. (B) USE.—Amounts in the Fund shall be Act entitled ‘‘An Act authorizing the con- Except as provided in section 3(l), this Act available for making expenditures— struction of certain public works on rivers shall apply to a power sales contract entered (i) to pay the incremental cost (above the and harbors for flood control, and for other into by a Federal Power Marketing Adminis- expected market cost of power) of nonhydro- purposes’’, approved December 22, 1944 (com- tration or the Tennessee Valley Authority electric renewable resources in the region in monly known as the ‘‘Flood Control Act of after July 23, 1997. which power is marketed by a Federal Power 1944’’) (58 Stat. 890)). Marketing Administration; and SEC. 4. TRANSMISSION SERVICE PROVIDED BY By Mr. BREAUX: (ii) to cover all costs incurred in establish- FEDERAL POWER MARKETING AD- S. 163. A bill to amend the Internal ing and administering the Fund. MINISTRATIONS AND TENNESSEE Revenue Code of 1986 to allow certain (C) ADMINISTRATION.—Amounts in the Fund VALLEY AUTHORITY. coins to be acquired by individual re- shall be expended only— (a) IN GENERAL.—Subject to subsection (b), (i) in accordance with a plan developed by a Federal Power Marketing Administration tirement accounts and other individ- the Secretary of Energy that is designed to and the Tennessee Valley Authority shall ually directed pension plan accounts; foster the development of nonhydroelectric provide transmission service on an open ac- to the Committee on Finance. renewable resources that show substantial cess basis, and at just and reasonable rates CERTIFIED U.S. LEGAL TENDER COINS ALLOWED long-term promise but that are currently too approved or established by the Federal En- IN IRAs expensive to attract private capital suffi- ergy Regulatory Commission under part II of Mr. BREAUX. Mr. President, I rise cient to develop or ascertain their potential; the Federal Power Act (16 U.S.C. 824 et seq.), today to introduce legislation allowing and in the same manner as the service is pro- (ii) on recipients chosen through competi- vided under Commission rules by any public certain U.S. legal tender coins to be tive bidding. utility subject to the jurisdiction of the qualified investments for an individual (D) MAXIMUM AMOUNT.— Commission under that part. retirement account (IRA). (i) IN GENERAL.—The Fund shall maintain a (b) EXPANSION OF CAPABILITIES OR TRANS- Congress excluded ‘‘collectibles’’, balance of not more than $50,000,000 in excess MISSIONS.—Subsection (a) does not require a such as antiques, gold and silver bul- of the amount that the Secretary of Energy Federal Power Marketing Administration or lion, and legal tender coinage, as ap- determines is necessary to carry out the plan the Tennessee Valley Authority to expand a propriate for contribution to IRAs in developed under subparagraph (C)(i). transmission or interconnection capability 1981. The primary reason was the con- (ii) SURPLUS REVENUE FOR DEFICIT REDUC- or transmission. cerns that individuals would get a tax TION.—Revenue that would be deposited in SEC. 5. INTERIM REGULATION OF POWER RATE the Fund but for the absence of the plan SCHEDULES OF FEDERAL POWER break when they bought collectibles shall be used by the Secretary of the Treas- MARKETING ADMINISTRATIONS. for their personal use. For example, a ury for purposes of reducing the Federal (a) IN GENERAL.—During the date begin- taxpayer might deduct the purchase of budget deficit. ning on the date of enactment of this Act an antique rug for his/her living room (j) PREFERENCE.— and ending on the date on which market- as an IRA investment. Congress was (1) IN GENERAL.—In making allocations or based pricing is implemented under section 3 also concerned about how the many reallocations of power under this section, a (as determined by the Federal Energy Regu- Federal Power Marketing Administration latory Commission), the Commission may different types of collectibles are val- and the Tennessee Valley Authority shall review and approve, reject, or revise power ued. provide a preference for public bodies and co- rate schedules recommended for approval by Over the years, however, certain operatives by providing a right of first re- the Secretary of Energy, and existing rate coins and precious metals have been fusal to purchase the power at market schedules, for power sales by a Federal excluded from the definition of a col- prices. Power Marketing Administration. lectible because they are independently (2) USE.— (b) BASIS FOR APPROVAL.—In evaluating valued investments that offer investors (A) IN GENERAL.—Power purchased under rates under subsection (a), the Federal En- portfolio diversity and liquidity. For paragraph (1)— ergy Regulatory Commission, in accordance (i) shall be consumed by the preference with section 3, shall— example, Congress excluded gold and customer or resold for consumption by the (1) base any approval of the rates on the silver U.S. American Eagles from the constituent end-users of the preference cus- protection of the public interest; and definition of collectibles in 1986, and tomer; and (2) undertake to protect the interest of the the Taxpayer Relief Act of 1997 took (ii) may not be resold to other persons or taxpaying public and consumers. the further step of excluding certain entities. (c) COMMISSION ACTIONS.—As the Federal precious metals bullion. (B) TRANSMISSION ACCESS.—In accordance Energy Regulatory Commission determines My legislation would exclude form with regulations of the Federal Energy Reg- is necessary to protect the public interest in the definition of collectibles only those accordance with section 3 until a full transi- ulatory Commission, a preference customer U.S. legal tender coins which meet the shall have transmission access to power pur- tion is made to market-based rates for power chased under paragraph (1). sold by Federal Power Marketing Adminis- following three standards; certification (3) COMPETITIVE BIDDING.—If a public body trations, the Federal Energy Regulatory by a nationally-recognized grading or cooperative does not purchase power Commission may— service, traded on a nationally-recog- under paragraph (1), the power shall be allo- (1) review the factual basis for determina- nized network and held by a qualified cated to the next highest bidder. tions made by the Secretary of Energy; trustee as described in the Internal (k) REFORMS.—The Secretary of Energy (2) revise or modify those findings as ap- Revenue Code. In other words, only in- shall require each Federal Power Marketing propriate; vestment quality coins that are inde- Administration to implement— (3) revise proposed or effective rate sched- (1) program management reforms that re- ules; or pendently valued and not held for per- quire the Federal Power Marketing Adminis- (4) remand the rate schedules to the Sec- sonal use may be included in IRAs. tration to assign personnel and incur ex- retary of Energy. There are several nationally-recog- penses only for authorized power marketing, (d) REVIEW.—An affected party (including a nized, independent certification or reclamation, and flood control activities and taxpayer, bidder, preference customer, or af- grading services. Full-time profes- not for ancillary activities (including con- fected competitor) may seek a rehearing and sional graders (numismatists) examine sulting or operating services for other enti- judicial review of a final decision of the Fed- each coin for authenticity and grade ties); and eral Energy Regulatory Commission under them according to established stand- (2) annual reporting requirements that this section in accordance with section 313 of clearly disclose to the public, the activities the Federal Power Act (16 U.S.C. 825l). ards. Upon certification, the coin is of the Federal Power Marketing Administra- (e) PROCEDURES.—The Federal Energy Reg- sonically-sealed (preserved) to ensure tion (including the full cost of the power ulatory Commission shall by regulation es- that it remains in the same condition projects and power marketing programs). tablish procedures to carry out this section. as when it was graded. S586 CONGRESSIONAL RECORD — SENATE January 19, 1999 Legal tender coins are then traded fourth graders performed in the middle success we had in meeting very similar via two independent electronic net- range of scores in math and were sec- goals President Reagan set out in 1984. works—the Certified Coin Exchange ond to Japan in science. Our seniors Most basically, we were ignoring Cole- and Certified CoinNet. These networks are bringing up the rear. man’s findings that we would have to are independent of each other and have American high school seniors per- start with the American family before no financial interest in legal tender formed among the lowest of the 21 we could expect improvements in coinage and precious metals markets. countries in the study. In mathematics American students. The networks function in precisely the our students were outperformed by I concluded the Public Interest piece same manner as the NASDAQ with a those of 14 countries, were statistically by saying, ‘‘If, as forecast here, the series of published ‘‘bid’’ and ‘‘ask’’ similar to 4 countries, and out- year 2000 arrives and the United States prices and last trades. The buys and performed only 2 countries. In science is nowhere near meeting the edu- sells are enforceable prices that must our students were outperformed by cational goals set out in 1990, the po- be honored as posted until updated. those of 11 countries, were similar to 7 tential will nonetheless exist for serous Mr. President, the liquidity provided countries, and again outperformed only debate as to why what was basically a through a bona fide national trading 2 countries. Asian countries such as political plan went wrong. We might network, combined with published Korea, Japan, and Singapore did not even consider how it might have turned prices, make legal tender coinage a participate in the twelfth grade study. out better.’’ practical investment that offers inves- Just as well, for morale purposes. Their Our children will not meet the goals tors diversification and liquidity. In- students embarrassed our students at set for math and science leadership. vestment in these tangible assets has the fourth and eighth grade levels. How can we help them do better? The become a safe and prudent course of ac- The two questions that come to mind TIMSS report says that it is too early tion for both the small and large inves- are what did we expect and what are we to draw specific conclusions about how tor and should be given the same treat- to do? to improve performance in twelfth ment under the law as other financial Our expectations were high at the be- grade, that it will take some time to investments. I urge the Senate to enact ginning of the decade. In September analyze all the data therein. I should this important legislation as soon as 1989, President Bush met with the Na- thing the higher education community possible. tion’s governors in Charlottesville to would be at the forefront of this effort, Mr. President, I ask unanimous con- set out goals for education. Four for the colleges are the most imme- sent that the text of the bill be printed months later he devoted a sizable por- diately affected by undereducated high in the RECORD. tion of his State of the Union Address school graduates. One student in five There being no objection, the bill was to setting forth the agreed-upon goals. takes remedial courses in at least one ordered to be printed in the RECORD, as Some were lofty, harmless, and subject. follows: unmeasurable: ‘‘By the year 2000 every Without giving short shrift to help- S. 163 child must start school ready to ing our elementary school students, we Be it enacted by the Senate and House of Rep- learn.’’ Most children are. ‘‘Every adult must focus on finding ways to keep resentatives of the United States of America in must be a skilled, literate worker and them at the level they have achieved Congress assembled, citizen.’’ We know what it means to be by fourth grade as they continue SECTION 1. CERTAIN COINS NOT TREATED AS a skilled mechanic, but a skilled citi- through school. This bill would make a COLLECTIBLES. zen? Others were lofty, measurable, small contribution to that effort by (a) IN GENERAL.—Subparagraph (A) of sec- and the product of a leakage of reality providing grants of $500,000 to $1,000,000 tion 408(m)(3) of the Internal Revenue Code that was stupefying then as now. First to states whose students collectively of 1986 (relating to exception for certain fall below the median score among the coins and bullion) is amended to read as fol- and foremost that ‘‘By the year 2000, lows: U.S. students would be first in the nations whose eighth graders retake ‘‘(A) any coin certified by a recognized world in math and science achieve- the TIMSS tests this year or next. The grading service and traded on a nationally ment.’’ money would be used to improve math- recognized electronic network, or listed by a President Bush was speaking to Con- ematics or science education. The recognized wholesale reporting service, and— gress in a vocabulary created in the grants would be awarded competi- ‘‘(i) which is or was at any time legal ten- 1960’s by James S. Coleman, then pro- tively; states whose students’ scores der in the United States, or fessor of sociology at Johns Hopkins qualify them must propose construc- ‘‘(ii) issued under the laws of any State, University. The ‘‘Coleman Report’’ in- tive ways of using the grants, such as or’’. (b) EFFECTIVE DATE.—The amendment troduced the language of educational for equipment, teacher training, or made by this section shall apply to taxable outputs. Previously we spoke of inputs: other purposes. years beginning after December 31, 1998. student-teacher ration, money per stu- The Department of Education last dent, and such. Coleman introduced the year released Linking the National As- By Mr. MOYNIHAN: idea of outputs, and measuring our sessment of Educational Progress and S. 164. A bill to improve mathematics standing in the world is one such. the Third International Mathematics and science instruction; to the Com- With Coleman we had a new vocabu- and Science Study: Eight grade results. mittee on Health, Education, Labor, lary for education, but sadly not a new This study showed how the states’ and Pensions. understanding. The first finding of his NAEP scores and other nations’ TIMSS LEGISLATION TO IMPROVE AMERICAN MATH AND remarkable report was ‘‘that the scores could be compared. The Depart- SCIENCE ACHIEVEMENT schools are remarkably similar in the ment of Education would use the same Mr. MOYNIHAN. Mr. President, I rise effect they have on the achievement of process to determine where states rank today to introduce legislation intended their pupils when the socioeconomic in comparision with the upcoming re- to help students in those States that do background of the students is taken sults of the TIMSS exams by a new not fare well in academic comparisons into account.’’ This was seismic. Fam- group of eight graders around the with students from other nations. It ily background is more important than world. Those states whose students authorizes grants to States whose stu- schools. But 24 years later, in 1990, it score below the median in either math dents continue to be outperformed by had not been learned, or could still be or science would be eligible to apply students in a majority of the nations ignored. for these grants. which took the Third International Stating that our goal was to become Mr. President, money is not the an- Mathematics and Science Study, or the leader in math and science was swer to our dismal showing among the TIMSS. folly. I wrote in the Winter 1991 Public nations of the world. Better families is TIMSS showed us that indisputably Interest that ‘‘on no account could the the place to start. These grants, how- our students do not fare well in inter- President’s goals—the quantified, spe- ever, would help those states that need national competition. The most strik- cific goals—reasonably be deemed ca- help the most. I ask my colleagues for ing finding was that American students pable of achievement.’’ I cited the gen- their support and ask unanimous con- do worse, comparative speaking, the eral decline in high school graduation sent that the text of the bill be printed longer they are in our schools. Our rates that began in 1970 and the lack of in the RECORD. January 19, 1999 CONGRESSIONAL RECORD — SENATE S587 There being no objection, the bill was disparity will be considered in the dis- SECTION 1. POVERTY DATA. ordered to be printed in the RECORD, as tribution of funds targeted to schools Title XIV of the Elementary and Second- follows: in areas with high incidences of pov- ary Education Act of 1965 (20 U.S.C. 8801 et seq.) is amended by adding at the end the fol- S. 164 erty (primarily the Title One grants as lowing: now authorized). Be it enacted by the Senate and House of Rep- ‘‘PART I—POVERTY DATA ADJUSTMENTS In 1995, a National Academy of resentatives of the United States of America in ‘‘SEC. 14901. POVERTY DATA ADJUSTMENTS. Congress assembled, Sciences (NAS) panel of experts re- ‘‘Whenever the Secretary uses any data SECTION 1. GRANTS TO IMPROVE MATHEMATICS leased a study on redefining poverty. that relates to the incidence of poverty and AND SCIENCE INSTRUCTION. Our poverty index dates back to the is produced or published by or for the Sec- (a) GRANTS AUTHORIZED.—The Secretary of work of Social Security Administra- retary of Commerce for subnational, State or Education is authorized to award a grant to tion economist Mollie Orshansky who, substate areas, the Secretary shall adjust the Governor or State educational agency of in the early 1960s, hit upon the idea of the data to account for differences in the a State if the Secretary determines that the cost of living in the areas.’’. average score of 8th grade students in the a nutritional standard, not unlike the ‘‘pennyloaf’’ of bread of the 18th cen- SEC. 2. SHORT TITLE. State on the 1999 retake of the Third Inter- This Act may be cited as ‘‘The Education national Mathematics and Science Study tury British poor laws. Our poverty Grant Formula Adjustment Act of 1999’’. (TIMSS) is or would be lower than the me- standard would be three times the cost dian of the scores of the countries participat- of the Department of Agriculture-de- By Mr. MOYNIHAN: ing in the 1999 retake of the Third Inter- fined minimally adequate ‘‘food bas- S. 166. A bill to require the Secretary national Mathematics and Science Study. ket.’’ of Commerce to determine any sur- (b) AMOUNT.—The Secretary of Education During consideration of the Family pluses or shortfalls in certain grant shall award a grant under this section in an amount not less than $500,000 and not more Support Act of 1988, I included a provi- amounts made available to States by than $1,000,000. sion mandating the National Academy reason of an undercount in the most re- (c) COMPARISON.—The Secretary of Edu- of Sciences to determine if our poverty cent decennial census conducted by the cation shall use the results of the most re- measure is outdated and how it might Bureau of the Census; to the Commit- cent National Assessment of Educational be improved. The study, edited by Con- tee on Governmental Affairs. Progress for comparisons between States and stance F. Citro and Robert T. Michael, LEGISLATION TO PROVIDE THE FISCAL countries with respect to the 1999 retake of is entitled ‘‘Measuring Poverty: A New CONSEQUENCES OF THE UNDERCOUNT the Third International Mathematics and Approach.’’ A Congressional Research Mr. MOYNIHAN. Mr. President, I rise Science Study. today to introduce a bill that is in- (d) COMPETITIVE BASIS.—The Secretary Service review of the report states: The shall award grants under this section on a NAS panel makes several recommenda- tended to shed a little more light on competitive basis. tions which, if fully adopted, could dra- the consequences of a census that is (e) USES.—Each Governor or State edu- matically alter the way poverty in the not adjusted for the undercount. The cational agency receiving a grant under this U.S. is measured, how federal funds are bill requires the Secretary of Com- section shall use the grant funds to improve allotted to the States, and how eligi- merce to notify each governor how mathematics and science instruction in the bility for many Federal programs is de- much more or less Federal funding in State. termined. The recommended poverty his or her state would receive each fis- (f) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated such measure would be based on more items cal year following a decennial census if sums as may be necessary to carry out this in the family budget, would take major the census were adjusted for the section for each of the fiscal years 2000 noncash benefits and taxes into ac- undercount and the adjusted figures through 2003. count, and would be adjusted for re- were used in grant allocation formulas. SEC. 2. SHORT TITLE. gional differences in living costs. This bill is not directly related to the This Act may be cited as the ‘‘Math and Mr. President, our current poverty controversy over sampling. The sam- Science Learning Improvement Act of 1999’’. data are inaccurate. And these sub- pling proposal made by the Bureau of standard data are used in allocation the Census is one way to eliminate the By Mr. MOYNIHAN (for himself, formulas used to distribute millions of undercount, but there are other less Mr. JEFFORDS, and Mr. Federal dollars each year. As a result, controversial methods. Not LIEBERMAN): States with high costs of living—states uncontroversial, but less so. S. 165. A bill to require the Secretary like New York, Massachusetts, Con- Mr. President, the taking of a census of Education to correct poverty data to necticut, New Hampshire, New Jersey goes back centuries. I quote from the account for cost of living differences; and California, just to name a few—are King James version of the Bible, chap- to the Committee on Health, Edu- not getting their fair share of Federal ter two of Luke: ‘‘And it came to pass cation, Labor, and Pensions. dollars because differences in the cost in those days that there went out a de- LEGISLATION TO REQUIRE POVERTY STATISTICS of living are not factored into the allo- cree from Caesar Augustus that all the BE ADJUSTED FOR LOCAL COSTS OF LIVING cation formula. And the poor of these world should be taxed (or enrolled, ac- Mr. MOYNIHAM. Mr. President, I high cost states are penalized because cording to the footnote) . . . And all rise to introduce legislation with a they happen to live there. It is time to went to be taxed, everyone into his simple purpose: to require that the for- correct this inequity. The ESEA reau- own city.’’ The early censuses were mulas for distributing grants under the thorization will be one of the most sig- taken to enable the ruler or ruling gov- Elementary and Secondary Education nificant measures we take up this year. ernment to tax or raise an army. Act use poverty statistics adjusted for For the children most in need of good The first census for more sociological the costs of living in subnational areas. schools and a good education, we reasons was taken in Nuremberg in While residents of some states such as should use adjusted poverty rates in 1449. So it was not a new idea to the New York earn more as a whole than the ESEA formulas. A national poverty Founding Fathers when they wrote it residents of many other states, they rate leads to inequities. Poverty rates into the Constitution to facilitate fair must also spend more. In some areas of adjusted for subnational areas would be taxation and accurate apportionment New York, they spend twice as much a significant step towards correcting of the House of Representatives, the for the same necessities as families in them. This bill would do so. latter of which was the foundation of urban areas elsewhere in the nation. Mr. President, I ask my colleagues the Great Compromise. Children whose families live just above for their support and ask unanimous The Constitution says in Article I, the poverty threshold in New York and consent that the text of the legislation Section 2: other wealthier states are demon- be printed in the RECORD. Representatives and direct Taxes shall be strably worse off than children from There being no objection, the bill was apportioned among the several States which may be included within this Union, accord- families just below the poverty thresh- ordered to be printed in the RECORD, as old in states where the cost of living is ing to their respective numbers, which shall follows: be determined by adding to the whole Num- lower. S. 165 ber of free Persons, including those bound to As we begin the process of reauthor- Be it enacted by the Senate and House of Rep- Service for a term of years, and excluding In- izing the Elementary and Secondary resentatives of the United States of America in dians not taxed, three fifths of all other per- Education Act this year, I hope this Congress assembled, sons. The actual enumeration shall be made S588 CONGRESSIONAL RECORD — SENATE January 19, 1999

within three years of the first meeting of the S. 166 SOCIAL STATISTICS AND THE CITY Congress of the United States, and within Be it enacted by the Senate and House of Rep- (By David M. Heer) every subsequent term of ten years, in such resentatives of the United States of America in FOREWORD manner as they shall direct by law. Congress assembled, At one point in the course of the 1950’s Opponents of adjustment often say SECTION 1. DEFINITIONS. John Kenneth Galbraith observed that it is that the Constitution calls for an ‘‘ac- In this Act: the statisticians, as much as any single tual enumeration’’, and this requires (1) COVERED FEDERAL FORMULA GRANT.— group, who shape public policy, for the sim- an actual headcount rather than any The term ‘‘covered Federal formula grant’’ ple reason that societies never really become statistical inference about those we means a grant awarded by the Federal Gov- effectively concerned with social problems ernment on the basis of a formula that pro- know we miss every time. That seems until they learn to measure them. An unas- vides for the distribution of funds to States. suming truth, perhaps, but a mighty one, to take the phrase out of context. I (2) SECRETARY.—The term ‘‘Secretary’’ note that we have not taken an ‘‘actual and one that did more than he may know to means the Secretary of Commerce. sustain morale in a number of Washington enumeration’’ the way the Founding (3) STATE.—The term ‘‘State’’ means each bureaucracies (hateful word!) during a period of the several States of the United States, Fathers envisioned since 1960, after when the relevant cabinet officers had on the District of Columbia, the Commonwealth which enumerators going to every door their own reached very much the same con- of Puerto Rico, the Virgin Islands, Guam, were replaced with mail-in responses. clusion—and distrusted their charges all the American Samoa, and the Commonwealth of The Constitution provides for a postal more in consequence. For it is one of the iro- the Northern Mariana Islands. system, but did not direct that the cen- nies of American government that individ- SEC. 2. CALCULATIONS OF SHORTFALLS AND uals and groups that have been most resist- sus be taken by mail. Yet we do it that SURPLUS AMOUNTS. ant to liberal social change have quite accu- way. (a) IN GENERAL.— rately perceived that social statistics are all Statistical work in the 1940s dem- (1) DETERMINATION OF FUNDING AMOUNTS.— onstrated that we can estimate the As soon as practicable after receiving the in- too readily transformed into political dyna- undercount, the number of people the formation concerning the fiscal year imme- mite, whilst in a curious way the reform census misses. The estimate for 1940 diately preceding the date of enactment of temperament has tended to view the whole statistical process as plodding, overcautious, was 5.4 percent of the population. After this Act, and annually thereafter, the Sec- retary, in consultation with the Comptroller and somehow a brake on progress. (Why decreasing steadily to 1.2 percent in must every statistic be accompanied by de- 1980, the 1990 undercount increased to General of the United States and the heads of appropriate Federal agencies, shall deter- tailed notes about the size of the ‘‘standard 1.8 percent, or more than four million mine, for the immediately preceding fiscal error’’?) people. year— The answer, of course, is that this is what More significantly, the undercount is (A) the amount of funds made available for must be done if the fact is to be accurately not distributed evenly. The differential that fiscal year for each covered Federal for- stated, and ultimately accepted. But, given undercount, as it is known, of minori- mula grant program; and this atmosphere of suspicion on the one hand ties was 4.4 percent for Blacks, 5.0 per- (B) for each covered Federal formula grant and impatience on the other, it is something of a wonder that the statistical officers of cent for Hispanics, 2.3 percent for program, the amount distributed to each grant recipient. the federal government have with such for- Asian-Pacific islanders, and 4.5 percent titude and fairness remained faithful to a for Native Americans, compared with (2) INFORMATION.—Not later than 120 days after the date of enactment of this Act, and high intellectual calling, and an even more 1.2 percent for non-Hispanic whites. not later than 120 days after the end of each demanding public trust. The difference between the black and fiscal year thereafter, the head of each Fed- There is no agency of which this is more non-black undercount was the largest eral agency that administers a covered Fed- true than the Bureau of the Census, the first, since 1940. By disproportionately miss- eral formula grant program shall submit to and still the most important, information- ing minorities, we deprive them of the Secretary— gathering agency of the federal government. equal representation in Congress and of (A) the amount of funds made available for For getting on, now, for two centuries, the proportionate funding from Federal that program for that fiscal year; and Census has collected and compiled the essen- (B) for each State recipient of a covered tial facts of the American experience. Of late programs based on population. The the ten-year cycle has begun to modulate Census Bureau estimates that the total Federal formula grant, the amount distrib- uted as a grant award under that grant to somewhat, and as more and more current re- undercount will reach 1.9 percent in that recipient. ports have been forthcoming, the Census has 2000 if the 1990 methods are used in- (b) DETERMINATIONS FOR FORMULA GRANT been quietly transforming itself into a con- stead of sampling. PROGRAMS THAT RECEIVED THE GREATEST tinuously flowing source of information Mr. President, I have some history AMOUNT OF FUNDING.—Upon making the de- about the American people. In turn, Amer- with the undercount issue. In 1966 when terminations under subsection (a), the Sec- ican society has become more and more de- I became Director of the Joint Center retary shall determine— pendent on it. It would be difficult to find an for Urban Studies at MIT and Harvard, (1) the 100 covered Federal formula grant aspect of public or private life not touched I asked Professor David Heer to work programs that received the greatest amounts and somehow shaped by Census information. And yet for all this, it is somehow ignored. with me in planning a conference to of funding during the preceding fiscal year; and To declare that the Census is without friends publicize the non-white undercount in (2) whether, on the basis of undercounting would be absurd. But partisans? When Census the 1960 census and to foster concern for the most recent decennial census (as de- appropriations are cut, who bleeds on Capitol about the problems of obtaining a full termined by the Secretary, acting through Hill or in the Executive Office of the Presi- enumeration, especially of the urban the Bureau of the Census), any State recipi- dent? The answer is almost everyone in gen- poor. I ask that my forward to the re- ent of a grant award under paragraph (1) re- eral, and therefore no one in particular. But port from that conference be printed ceived an amount less than or greater than the result, too often, is the neglect, even the following my remarks, for it is, save the amount that the recipient would other- abuse, of an indispensable public institution, for some small numerical changes, dis- wise have received if an adjustment to the which often of late has served better than it turbingly still relevant. grant award had been made for that under- has been served. The papers in this collection, as Professor My hope is that if governors and counting. (c) REPORTS.— Heer’s introduction explains, were presented other interested parties learn the fi- (1) IN GENERAL.—Upon making the deter- at a conference held in June 1967 with the nancial consequences of the minations under subsection (b), the Sec- avowed purpose of arousing a measure of undercount, support may grow for cor- retary shall prepare, for each State, an an- public concern about the difficultires en- recting it. It is regrettable that we nual report that includes— countered by the Census in obtaining a full don’t do it, simply because we should. (A) a listing of any grant award under sub- count of the urban poor, especially perhaps But if a yearly reminder of how the section (b)(1) provided to that State that was the Negro poor. It became apparent, for ex- undercount affects formula grant pro- an amount less than or greater than amount ample, that in 1960 one fifth of nonwhite grams helps change some minds, it is that the State would otherwise have received males aged 25–29 had in effect disappeared worth the effort. if an adjustment for undercounting referred and had been left out of the Census count al- I ask my colleagues for their support to in that subsection had been made; and together. Invisible men. Altogether, one (B) for each grant award listed under sub- tenth of the non-white population had been and I ask unanimous consent that the paragraph (A), the amount of the shortfall or ‘‘missed.’’ The ramifications of this fact were bill and additional material, be printed surplus determined under subsection (b)(2). considerable, and its implications will sug- in the RECORD. (2) DISTRIBUTION.—The Secretary shall pro- gest themselves immediately. It was hoped There being no objection, the items vide to the Governor of each State (or the that a public airing of the issue might lead were ordered to be printed in the equivalent official) a copy of the report pre- to greater public support to ensure that the RECORD, as follows: pared under paragraph (1) for that State. Census would have the resources in 1970 to do January 19, 1999 CONGRESSIONAL RECORD — SENATE S589 what is, after all, its fundamental job, that In 1987 the Secretary of the Interior ‘‘(1) IN GENERAL.—Notwithstanding’’; and of counting all the American people. As the approved a management plan for the (2) by adding at the end the following: reader will see, the scholarly case for provid- Upper Delaware Scenic and Rec- ‘‘(2) VISITOR CENTER.—For the purpose of ing this support was made with considerable reational River which called for the de- constructing and operating a visitor center energy and candor. But perhaps the most for the segment of the Upper Delaware River compelling argument arose from a chance re- velopment of a visitors center at the designated as a scenic and recreational river mark by a conference participant to the ef- south end of the river corridor. It by section 3(a)(19) of the Wild and Scenic fect that if the decennial census were not re- would be owned and constructed by the Rivers Act (16 U.S.C. 1274(a)(19)), subject to quired by the Constitution, the Bureau National Park Service. In 1993 New the availability of appropriations, the Sec- would doubtless never have survived the York State authorized a lease with the retary of the Interior may— economy drives of the nineteenth century. Park Service for the construction of a ‘‘(A) enter into a lease with the State of The thought flashed: the full enumeration of visitor center on State-owned land in New York, for a term of 99 years, for State- the American population is not simply an the town of Deerpark in the vicinity of owned land within the boundaries of the optional public service provided by govern- Upper Delaware River located at an area ment for the use of sales managers, sociolo- Mongaup. This bill allows the Sec- known as ‘Mongaup’ near the confluence of gists, and regional planners. It is, rather, the retary to enter into such a lease and to the Mongaup and Upper Delaware Rivers in constitutionally mandated process whereby construct and operate the visitor cen- the State of New York; and political representation in the Congress is ter. ‘‘(B) construct and operate the visitor cen- distributed as between different areas of the Mr. President, the many thousands of ter on the land leased under subparagraph Nation. It is a matter not of convenience but visitors to this wonderful river would (A).’’. of the highest seriousness, affecting the very benefit greatly from a place to go to foundations of sovereignty. That being the find out about the recreational oppor- By Mr. MOYNIHAN: case, there is no lawful course but to provide S. 168. A bill for the relief of Thomas the Bureau with whatever resources are nec- tunities, the history, and the flora and fauna of the river. This bill would move J. Sansone, Jr.; to the Committee on essary to obtain a full enumeration. Inas- the Judiciary. much as Negroes and other ‘‘minorities’’ are that process along to its conclusion. It concentrated in specific urban locations, to would also reauthorize the Citizens Ad- PRIVATE RELIEF BILL undercount significantly the population in visory Council which ensures that the Mr. MOYNIHAN. Mr. President, I rise those areas is to deny residents their rights views and concerns of local residents today to introduce a bill that will pro- under Article I, Section 3 of the Constitu- are kept in mind when management de- vide compensation under the National tion, as well, no doubt, as under Section 1 of cisions are made. My colleague from Vaccine Injury Compensation Program the Fourteenth Amendment. Given the fur- (VICP) to Tommy Sansone, Jr. Tommy ther, more recent practice of distributing New York and I ask for the support of other Senators, and I ask unanimous was injured by a DPT vaccine in June Federal, State, and local categorical aid on 1994 and continues to suffer seizures the basis not only of the number but also so- consent that the text of the bill be cial and economic characteristics of local printed in the RECORD. and brain damage to this day. Tommy populations, the constitutional case for full There being no objection, the bill was is the untended and helpless victim of enumeration would seem to be further ordered to be printed in the RECORD, as a drug designed to help him. He needs strengthened. follows: our help because while the Vaccine In- A sound legal case? Others will judge; and S. 167 jury Program is meant to make repara- possibly one day the courts will decide. But Be it enacted by the Senate and House of Rep- tions for these injuries, it is hampered of one thing the conference had no doubt: the by regulations that challenge the wor- common-sense case is irrefutable. America resentatives of the United States of America in needs to count all its people. (And recip- Congress assembled, thiest of claims. rocally, all its people need to make them- SECTION 1. EXTENSION OF AUTHORIZATION FOR Back in 1986, Congress passed the selves available to be counted.) But if the UPPER DELAWARE CITIZENS ADVI- Vaccine Injury Act to take care of vac- legal case adds any strength to the common- SORY COUNCIL. cine injuries because the shots that we sense argument, it remains only to add that Section 704(f)(1) of the National Parks and required our children to get were not Recreation Act of 1978 (16 U.S.C. 1274 note; should either of the arguments bring some as safe as they could have been. Since improvement in the future, it will be but an- Public Law 95–625) is amended in the last sentence by striking ‘‘20’’ and inserting ‘‘30’’. the program was established, more other instance of the generosity of the Car- than 1100 children have been com- negie Corporation, which provided funds for SEC. 2. VISITOR CENTER FOR UPPER DELAWARE the conference and for this publication. SCENIC AND RECREATIONAL RIVER. pensated. Over the first ten years, a (a) FINDINGS.—Congress finds that— great percentage of those with seizures By Mr. MOYNIHAN (for himself (1) on September 29, 1987, the Secretary of or brain damage or other symptoms the Interior approved a management plan for and Mr. SCHUMER): were recognized to be DPT-injured, the Upper Delaware Scenic and Recreational and, they were summarily com- S. 167. A bill to extend the authoriza- River, as required by section 704(c) of the Na- tion for the Upper Delaware Citizens tional Parks and Recreation Act of 1978 (16 pensated. But, by 1995, the Institutes of Advisory Council and to authorize con- U.S.C. 1274 note; Public Law 95–625); Medicine (IOM) and others concluded struction and operation of a visitor (2) the management plan called for the de- that because the symptoms had no center for the Upper Delaware Scenic velopment of a primary visitor contact facil- unique clinical profile, they were not and Recreational River, New York and ity located at the southern end of the river necessarily DPT injuries. So, HHS Pennsylvania; to the Committee on En- corridor; changed the definitions of ergy and Natural Resources. (3) the management plan determined that encephalopathy (inflammation of the the visitor center would be built and oper- brain), and of vaccine injury. Those UPPER DELAWARE SCENIC AND RECREATIONAL ated by the National Park Service; RIVER LEGISLATION (4) section 704 of that Act limits the au- new definitions had unintended con- Mr. MOYNIHAN. Mr. President, I rise thority of the Secretary of the Interior to sequences. Now, the program that we today to introduce, along with my acquire land within the boundary of the river set up to be expeditious and fair, uses friend and colleague Senator SCHUMER, corridor; and criteria that are so strict that the fund a bill to extend the authorization for (5) on June 21, 1993, the State of New York from which these claims are paid pays the Upper Delaware River Citizens Ad- authorized a 99-year lease between the New fewer claims than before and the fund visory Committee and authorize the York State Department of Environmental has ballooned to over $1.2 billion. As a construction of a visitors center. The Conservation and the National Park Service result, families of children like Tommy for construction and operation of a visitor Upper Delaware is a 73-mile stretch of center by the Federal Government on State- find it nearly impossible to win a claim free flowing water between Hancock owned land in the town of Deerpark, Orange against the Vaccine Injury Compensa- and Sparrowbush, New York along the County, New York, in the vicinity of tion Program. The program is failing Pennsylvania border. The area is home Mongaup, which is the preferred site for the its mission. to the Zane Gray Museum and to visitor center. To be clear, VICP is not a medical in- Roebling’s Delaware Aqueduct, which (b) AUTHORIZATION OF VISITOR CENTER.— surance policy. The program is not de- is believed to be the oldest existing Section 704(d) of the National Parks and signed to take care of those who can- Recreation Act of 1978 (16 U.S.C. 1274 note; wire cable suspension bridge. The Public Law 95–625) is amended— not get or receive care. VICP is a com- Upper Delaware is an ideal location for (1) by striking ‘‘(d) Notwithstanding’’ and pensation program, where the govern- canoeing, kayaking, rafting, tubing, inserting the following: ment makes amends for a failure in the sightseeing, and fishing. ‘‘(d) ACQUISITION OF LAND.— system that it established. Claims are S590 CONGRESSIONAL RECORD — SENATE January 19, 1999 paid from a trust fund established from 4 and a half years since the DPT vac- stands the critical needs of military surcharges that are paid on each shot a cine he and his family have suffered. As members and their families. Twenty- child receives. The fund serves as an in- a parent and grandparent, I would do five years ago Americans opted to end surance policy against vaccine injuries. anything to protect my family from the draft and to establish an all-volun- But, following the regulatory changes such pain and suffering. Tom Sansone, teer military force to provide for our made in 1995, the government is not Sr. has done everything he knows how national security. That policy carried recognizing even the most legitimate to help his son. Now he has turned to with it a requirement that we invest of claims. We are failing the very chil- me because he knows I am in a position the needed resources to bring into ex- dren we are trying to protect. to help and I will not relent in my pur- istence a competent and professional Over the years after his DPT shot suit of relief for the Sansone family. military. Currently, all services are (the combined shot for diphtheria, per- The Vaccine Injury Compensation Pro- having difficulty in attracting and re- tussis and tetanus), Tommy suffers se- gram should take care of Tommy, but taining qualified individuals. Seasoned, vere seizures and from brain damage it doesn’t. This bill will enable us to well-qualified personnel are leaving in that has hampered his mental develop- ensure that it does. alarming numbers. Specifically, the ment. When he wakes in the morning Mr. President, I ask unanimous con- Navy is not making its recruiting or from a nap, either his mother or fa- sent that the bill be printed in the goals. The Army cites pay and retire- ther is at his side waiting for the inevi- RECORD. ment, and overall quality of life as table. Tommy’s eyes tear and his face There being no objection, the bill was three of the top four reasons soldiers cringes in agony as his entire body is ordered to be printed in the RECORD, as are leaving. The Air Force is currently wracked with a muscle-clenching sei- follows: 850 pilots short. The Marine Corps is zure. His parents hold him helplessly S. 168 hampered by inadequate funding of the until the seizure subsides, sometimes Be it enacted by the Senate and House of Rep- pay and retirement and quality of life for as long as five minutes. Tommy resentatives of the United States of America in accounts in meeting its readiness and will then look into his mother’s loving Congress assembled, modernizing needs. All services, includ- eyes, and say, ‘‘No more, mommy. SECTION 1. COMPENSATION FOR VACCINE-RE- ing the Guard and Reserve Compo- Make them stop.’’ LATED INJURY. nents, are experiencing similar recruit- At the very least, Tommy’s parents (a) CAUSE OF INJURY.—In consideration of ing and retention problems. These the petition filed under subtitle 2 of title know that the strain of vaccine used on XXI of the Public Health Service Act (42 shortfalls must be addressed if our Na- Tommy is now being phased out be- U.S.C. 300aa–10 et seq.) (relating to the Na- tion is to continue to have a highly ca- cause of the rash of adverse reactions tional Vaccine Injury Compensation Pro- pable, cutting edge military force. it caused. But this does nothing for gram) by the legal representatives of Thom- In light of our recent successful oper- Tommy or his parents, who have been as J. Sansone, Jr., including the claims con- ations around the world, in the Persian in and out of countless hospitals, and tained in that petition that the injury de- Gulf and elsewhere, we must redouble consulted with doctors and experts at scribed in that petition was cause by a vac- our efforts to ensure that we continue the Centers for Disease Control and the cine covered in the Vaccine Injury Table to recruit, train and retain the best of Health Resources and Services Admin- specified in section 2114 of such Act (42 America to serve in our armed forces, U.S.C. 300aa–14) and given on June 1, 1994, istration. Their claim for compensa- such injury is deemed to have been caused by which is the goal of the legislation I tion was dismissed in the Federal such vaccine for the purposes of subtitle 2 of am introducing today. Equally impor- Court of Claims, but they and Tommy’s title XXI of such Act. tant, this bill, for the first time in a doctor feel (and I agree with them) (b) PAYMENT.—The Secretary of Health and long time, addresses the immediate that they should have known more Human Services shall pay compensation to family members of our brave Soldiers, about the potential dangers of the DPT Thomas J. Sansone, Jr. for the injury re- Sailors, Airmen, and Marines. The vaccine that Tommy received on June ferred to in subsection (a) in accordance with Military Recruiting and Retention Im- section 2115 of the Public Health Service Act 1, 1994. No one told them that there was (42 U.S.C. 300aa–15). provement Act of 1999 addresses the a chance that the DPT vaccine could concerns of Secretary of Defense cause such trauma. No one told them By Mr. CLELAND (for himself, Cohen, the Joint Chiefs of Staff and about ‘‘hot lots,’’ an unofficial term for Mr. ROBB, Mr. LEVIN, Mr. KEN- Congress regarding recruiting a strong, a batch of shots that has had an abun- NEDY, Mr. BINGAMAN, Mr. BYRD, viable military force for the 21st Cen- dance of adverse reactions. The lot Mr. LIEBERMAN, Ms. LANDRIEU, tury. It also significantly assists in re- that Tommy received is known to have Mr. REED, and Mr. DASCHLE): taining the right military personnel for had 44 such reactions from March–No- S. 169. A bill to improve pay, retire- the 21st Century. If we fail today to ad- vember 1994, including 2 deaths. These ment, and educational assistance bene- dress these key issues, now when we are reactions beyond the short-lived fits for members of the Armed Forces; have the combination of a strong econ- fever and rashes that accompany many and for other purposes; to the Commit- omy, a relatively positive budget out- vaccines. Their doctor didn’t know tee on Armed Services. look, and a world which is largely at about the availability of the ‘‘new’’ THE MILITARY RECRUITING AND RETENTION peace, we may well have missed a key acellular strain of pertussis vaccine IMPROVEMENT ACT OF 1999 window of opportunity. The bill we are that is replacing the whole cell version Mr. CLELAND. Mr. President, I am introducing today goes a long way to- that had been used since the 1930s. extremely pleased to introduce with ward eliminating the deficiencies that Sure, it costs a couple of dollars more, my colleagues, Senators ROBB, LEVIN, we all have recently heard so much but who wouldn’t choose that for their KENNEDY, BYRD, BINGAMAN, LIEBERMAN, about from the Chiefs and a myriad of child—given the choice? LANDRIEU, REED, and DASCHLE—The experts who are greatly concerned Tommy’s claim would have been cov- Military Recruiting and Retention Im- about the readiness of our military ered before the 1995 changes, but that provement Act of 1999. I strongly be- force, especially as we look a few years is not the case any longer. He’s the vic- lieve that this bill represents an excel- ahead. tim of a bad DPT vaccine, yet his case lent step toward providing the men and Military experts, defense journalists, continues to be denied because the first women of the military a clear signal former Secretaries of Defense, former seizure didn’t occur within 72 hours of that we the people of the United States Service Chiefs, former theater Com- the shot. It occurred 18 days later, and and we the members of the Congress of manders in Chief, research and devel- he suffers to this day. Tommy also has the United States value their contribu- opment specialists and even civilian in- brain damage (encephalopathy) be- tions, understand their needs and con- dustry leaders agree: the number one cause of the DPT shot, but it doesn’t cerns, and understand our obligations factor undergirding our superpower fit that new definition either. He cried to provide for those who have answered military status is the people of our and moaned at a shrill pitch from the the calling to defend our Nation. Armed Forces. This critical ingredient moment of the shot until his first sei- The signal that we send to the people means something different today than zure, but that doesn’t matter either. in the military and to the people of the it did on the beaches of Normandy, in For the first six months of his life, United States should be one of hope the jungles of Vietnam, or in fact even Tommy was in all ways normal, but for and opportunity, and one that under- on the deserts of Kuwait. Today, the January 19, 1999 CONGRESSIONAL RECORD — SENATE S591 people of our military are as dedicated, day’s youth and their service in the the basic GI Bill benefit from $528 to as committed, as patriotic as any force military. This 106th Congress has a tre- $600 per month and eliminate the cur- we have ever fielded. They are, in fact, mendous opportunity to respond to to- rent requirement for entering service smarter, better trained, and more tech- day’s military personnel problems. We members to contribute $1,200 of their nically adept than any who we have must keep our focus on current and fu- own money in order to participate in ever counted upon to defend our Na- ture personnel issues, including rec- the program. These changes should tion. Operation Desert Fox proved this ognizing and responding to the need to dramatically increase the fact. This flawless, but dangerous and retain a family. Our legislation does so. attractiveness of the GI Bill to poten- stressful, operation involved 40,000 Mr. President, the bill my colleagues tial recruits,and give our Service Sec- troops from bases virtually around the and I are introducing today includes all retaries a powerful recruiting incen- world. Over 40 shops performed around three parts of the Department of De- tive. the clock strikes and support. Six hun- fense’s proposed pay and retirement Our legislation also adopts the dred aircraft sorties were flown in four package. It incorporates some of the Principi Commission recommendations days, and over 300 of these were night recommendations made by the Con- to allow service members to transfer strike operations. And this massive ef- gressionally mandated Principi Com- their earned GI Bill benefits to one or fort was carried out without a single mission, and it provides some addi- more immediate family members. Mr. loss of American or British life! tional innovative ideas for addressing President, this idea is innovative, it is In contrast to this and other post- these key personnel issues, now and powerful and it sends the right message Vietnam successes, consider the prob- into the future. to both those young people we are try- lems which face the people in uniform. First, our bill provides a 4.8% pay ing to attract into the military and New global security threats and our raise across-the-board for all military those we are trying to retain. strong economy each exert enormous members, effective January 1, 2000, and The Military Recruiting and Reten- pressures on the people in the military carries out the stated objective of Sec- tion Improvement Act of 1999 includes and their families. By some measures retary Cohen and the Joint Chiefs of a provision that would allow military the pay for our military personnel lags Staff of bringing military pay more in members to participate in the current 13 percent behind the civilian pay line with private sector wages. This in- Thrift Savings Plan available to Fed- raises over the last 20 years. Yet, we crease raises military pay in FY2000 by eral civil servants. Under this proposal, ask our military to train on highly one-half a percentage point above the which adopts another recommendation technical equipment, to commit them- annual increase in the Employment of the Congressional Commission on selves in harm’s way, to leave their Cost Index (ECI), and represents the Servicemembers and Veterans Transi- families, and to execute flawless oper- largest increase in military pay since tion Assistance, military members ations. Sometimes these operations are 1982. Furthermore, and also in keeping would be permitted to contribute up to new and different from any past mili- with DoD’s current plans, we would 5 percent of their basic pay, and all or tary operations, but they can be just as provide an annual increase in military any part of any enlistment or reenlist- dangerous. Meanwhile, some of our pay of one-half percent above the an- ment bonus, to the Thrift Savings servicemen and women qualify for food nual increase in the ECI in each year Plan. stamps, do not have the same edu- from FY2001 to FY2006. Another section of our legislation ex- cational opportunities as their civilian Another of the Joint Chiefs’ rec- tends for three years—through Decem- counterparts, must deal with confusing ommendations included in our legisla- ber 31, 2002—the authority for the mili- and changing health benefits and/or tion is the targeted pay raise for mid- tary services to pay a number of bo- can not find affordable housing. Some- grade officers and enlisted personnel, nuses and special incentive pays that thing is badly wrong with this picture, and also for key promotion points. are fundamental to recruiting and re- and the Congress and the Administra- These raises, amounting to between 4.8 taining highly skilled military mem- tion must work together to set things percent and 10.3 percent, which in- bers. The authority to pay these bo- right. cludes the January 1, 2000, pay raise nuses and special pay expires at the Specifically, we need to recruit good and would be effective July 1, 2000. end of this year. By renewing this au- people, continue to train them, and re- The third part of our legislation thority now through the end of 2002, we tain them in the military. This is dif- taken from the DOD plan is a revision will provide military managers with ficult at best with the changes in our in the Military Retirement Reform Act these crucial retention tools. By acting society, the rapidly changing threats of 1986, which would restore the 50 per- now and for three years, the military to our security, and a prosperous econ- cent basic pay benefit for military members themselves will have greater omy. As I heard a service member say members who retire at 20 years of serv- confidence that these pay incentives during a hearing I held at Ft. Gordon, ice. will be available. Georgia last year, we recruit an indi- I am proud to say that in addition to Mr. President, based on our initial vidual, but we retain a family. the pay and retirement benefits pack- estimates, it is my understanding that Some of the recruiting and retention age proposed by Secretary Cohen and the provisions contained in this legisla- problems of today’s United States mili- the Joint Chiefs, our legislation in- tion will not require us to increase the tary are well documented. Others need cludes several key recommendations funding for national defense above the to be more thoroughly explored. They from the recent report of the Congres- levels in the President’s FY2000–2006 all need to be addressed. The Military sional Commission on Servicemembers Future Years Defense Plan. However, Recruiting and Retention Improvement and Veterans Transition Assistance, more precise costing will have to be Act of 1999 is but the first step. It is the also known as the Principi Commis- done by the Congressional Budget Of- beginning. I caution my colleagues sion. These provisions are specifically fice over the next several weeks. that today’s servicemen and women, designed to assist the military services I know that all Members of the and their families, are intelligent and in their recruiting and retention ef- United States Senate are committed to are quick to recognize duplicity in the forts. the well-being of our servicemen and words and actions of our civilian and Information and data that we are women and their families. They are military leadership. Our military’s seeing indicate that education benefits doing their duty with honor and dig- most important assets—its people—are are an essential component in attract- nity. They are serving our country leaving the military, and many of ing young people to enter the armed around the globe. They, along with America’s best are not even consider- services. This may be the single most their families, deserve our commit- ing joining the military. We must pro- important step this Congress can take ment. The bill we are introducing ceed expeditiously, with firm purpose in assisting recruitment. Improve- today is fair and will ensure that we and unified non-partisanship if we are ments in the Montgomery GI Bill are continue to attract and retain high to reverse these dangerous trends. needed, and our bill represents a vital quality people to serve in our armed This bill responds to current data move in that direction. forces. It represents the beginning of a which provide some insight into how In keeping with the Principi Com- process to provide hope and oppor- we can more effectively respond to to- mission, our legislation would increase tunity to those who wear the uniform S592 CONGRESSIONAL RECORD — SENATE January 19, 1999 of our Services. The President has an- honor that obligation. I know I speak TITLE I—PAY AND ALLOWANCES nounced a very good plan, as has the for myself and all of my co-sponsors in SEC. 101. FISCAL YEAR 2000 INCREASE AND RE- distinguished Majority Leader. We pledging to do our utmost to achieve STRUCTURING OF BASIC PAY. must move forward, together, in ad- that goal. (a) WAIVER OF SECTION 1009 ADJUSTMENT.— dressing these important personnel and Mr. President, I now ask an unani- Any adjustment required by section 1009 of readiness issues. mous consent that a summary and the title 37, United States Code, in the rates of In closing, I want to recognize the text of the Military Recruitment and monthly basic pay authorized members of leadership of Senator LEVIN, and the Retention Improvement Act of 1999 be the uniformed services by section 203(a) of other members of the Armed Services printed into the RECORD. such title to become effective during fiscal Committee who are co-sponsoring this There being no objection, the items year 2000 shall not be made. legislation. We are all absolutely com- were ordered to be printed in the (b) JANUARY 1, 2000, INCREASE IN BASIC mitted to the welfare of our service- RECORD, as follows: PAY.—Effective on January 1, 2000, the rates men and women and their families. S. 169 of monthly basic pay for members of the uni- Be it enacted by the Senate and House of Rep- formed services shall be increased by 4.8 per- They provide for us, and it is time for cent. us to provide our obligation to them. I resentatives of the United States of America in Congress assembled, look forward to working with Senator (c) BASIC PAY REFORM.—Effective on July SECTION 1. SHORT TITLE. 1, 2000, the rates of monthly basic pay for LEVIN, Chairman WARNER, and all of This Act may be cited as the ‘‘Military Re- members of the uniformed services are as our colleagues on the Armed Services cruiting and Retention Improvement Act of follows: Committee in the months ahead to 1999’’. COMMISSIONED OFFICERS 1 Years of service computed under section 205 of title 37, United States Code

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–10 2 ...... $0.00 $0.00 $0.00 $0.00 $0.00 O–9 ...... 0.00 0.00 0.00 0.00 0.00 O–8 ...... 6,594.30 6,810.30 6,953.10 6,993.30 7,171.80 O–7 ...... 5,479.50 5,851.80 5,851.50 5,894.40 6,114.60 O–6 ...... 4,061.10 4,461.60 4,754.40 4,754.40 4,772.40 O–5 ...... 3,248.40 3,813.90 4,077.90 4,127.70 4,291.80 O–4 ...... 2,737.80 3,333.90 3,556.20 3,606.04 3,812.40 O–3 3 ...... 2,544.00 2,884.20 3,112.80 3,364.80 3,525.90 O–2 3 ...... 2,218.80 2,527.20 2,910.90 3,000.00 3,071.10 O–1 3 ...... 1,926.30 2,004.90 2,423.10 2,423.10 2,423.10 Over 8 Over 10 Over 12 Over 14 Over 16

O–10 2 ...... $0.00 $0.00 $0.00 $0.00 $0.00 O–9 ...... 0.00 0.00 0.00 0.00 0.00 O–8 ...... 7,471.50 7,540.80 7,824.60 7,906.20 8,150.10 O–7 ...... 6,282.00 6,475.80 6,669.00 6,863.10 7,471.50 O–6 ...... 4,976.70 5,004.00 5,004.00 5,169.30 5,791.20 O–5 ...... 4,291.80 4,420.80 4,659.30 4,971.90 5,286.00 O–4 ...... 3,980.40 4,251.50 4,464.00 4,611.00 4,758.90 O–3 3 ...... 3,702.60 3,850.20 4,040.40 4,139.10 4,139.10 O–2 3 ...... 3,071.10 3,071.10 3,071.10 3,071.10 3,071.10 O–1 3 ...... 2,423.10 2,423.10 2,423.10 2,423.10 2,423.10 Over 18 Over 20 Over 22 Over 24 Over 26

O–10 2 ...... $0.00 $10,655.10 $10,707.60 $10,930.20 $11,318.40 O–9 ...... 0.00 9,319.50 9,453.60 9,647.70 9,986.40 O–8 ...... 8,503.80 8,830.20 9,048.00 9,048.00 9,048.00 O–7 ...... 7,985.40 7,985.40 7,985.40 7,985.40 8,025.60 O–6 ...... 6,086.10 6,381.30 6,549.00 6,719.10 7,049.10 O–5 ...... 5,436.00 5,583.60 5,751.90 5,751.90 5,751.90 O–4 ...... 4,808.70 4,808.70 4,808.70 4,808.70 4,808.70 O–3 3 ...... 4,139.10 4,139.10 4,139.10 4,139.10 4,139.10 O–2 3 ...... 3,071.10 3,071.10 3,071.10 3,071.10 3,071.10 O–1 3 ...... 2,423.10 2,423.10 2,423.10 2,423.10 2,423.10 1 Basic pay for these officers is limited to the rate of basic pay for level V of the Executive Schedule. 2 While serving as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of the Coast Guard, basic pay for this grade is calculated to be $12,441.00, regardless of cumulative years of service computed under section 205 of title 37, United States Code. Nevertheless, basic pay for these officers is limited to the rate of basic pay for level V of the Executive Schedule. 3 Does not apply to commissioned officers who have been credited with over 4 years of active duty service as an enlisted member or warrant officer. COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER Years of service computed under section 205 of title 37, United States Code

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–3E ...... $0.00 $0.00 $0.00 $3,364.80 $3,525.90 O–2E ...... 0.00 0.00 0.00 3,009.00 3,071.10 O–1E ...... 0.00 0.00 0.00 2,423.10 2,588.40 Over 8 Over 10 Over 12 Over 14 Over 16 O–3E ...... $3,702.60 $3,850.20 $4,040.40 $4,200.30 $4,291.80 O–2E ...... 3,168.60 3,333.90 3,461.40 3,556.20 3,556.20 O–1E ...... 2,683.80 2,781.30 2,877.60 3,009.00 3,009.00 Over 18 Over 20 Over 22 Over 24 Over 26 O–3E ...... $4,416.90 $4,416.90 $4,416.90 $4,416.90 $4,416.90 O–2E ...... 3,556.20 3,556.20 3,556.20 3,556.20 3,556.20 O–1E ...... 3,009.00 3,009.00 3,009.00 3,009.00 3,009.00 WARRANT OFFICERS WARRANT OFFICERS ENLISTED MEMBERS Years of service computed under section 205 of title 37, United States Code Years of service computed under section 205 of title 37, United States Code Years of service computed under section 205 of title 37, United States Code

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6 Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6 Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

W–5 ...... $0.00 $0.00 $0.00 $0.00 $0.00 W–1 ...... 2,332.80 2,433.30 2,533.20 2,634.00 2,734.80 E–9 4 ...... $0.00 $0.00 $0.00 $0.00 $0.00 W–4 ...... 2,592.00 2,788.50 2,868.60 2,947.50 3,083.40 E–8 ...... 0.00 0.00 0.00 0.00 0.00 W–3 ...... 2,355.90 2,555.40 2,555.40 2,588.40 2,694.30 Over 18 Over 20 Over 22 Over 24 Over 26 E–7 ...... 1,765.80 1,927.80 2,001.00 2,073.00 2,147.70 W–2 ...... 2,063.40 2,232.60 2,232.60 2,305.80 2,423.10 E–6 ...... 1,518.90 1,678.20 1,752.60 1,824.30 1,899.30 W–1 ...... 1,719.00 1,971.00 1,971.00 2,135.70 2,232.60 W–5 ...... $0.00 $4,475.10 $4,628.70 $4,782.90 $4,937.40 E–5 ...... 1,332.60 1,494.00 1,566.00 1,640.40 1,714.50 W–4 ...... 3,888.00 4,019.00 4,155.60 4,289.70 4,427.10 E–4 ...... 1,242.90 1,373.10 1,447.20 1,520.10 1,593.90 Over 8 Over 10 Over 12 Over 14 Over 16 W–3 ...... 3,418.50 3,539.10 3,659.40 3,780.00 3,900.90 E–3 ...... 1,171.50 1,260.60 1,334.10 1,335.90 1,335.90 W–2 ...... 3,058.40 3,163.80 3,270.90 3,378.30 3,378.30 E–2 ...... 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 W–5 ...... $0.00 $0.00 $0.00 $0.00 $0.00 E–1 ...... 5 1,005.60 1,005.60 1,005.60 1,005.60 1,005.60 W–4 ...... 3,217.20 3,352.80 3,485.10 3,622.20 3,753.60 W–1 ...... 2,835.00 2,910.90 2,910.90 2,910.90 2,910.90 W–3 ...... 2,814.90 2,974.20 3,071.10 3,177.00 3,298.20 Over 8 Over 10 Over 12 Over 14 Over 16 W–2 ...... 2,555.40 2,852.60 2,749.80 2,844.30 2,949.00 January 19, 1999 CONGRESSIONAL RECORD — SENATE S593 ENLISTED MEMBERS ber 31, 1999’’ and inserting ‘‘December 31, (iii) by redesignating paragraph (3) as para- Years of service computed under section 205 of title 37, United States Code 2002’’. graph (2); and (b) SELECTED RESERVE REENLISTMENT (B) in section 1410, by striking ‘‘if—’’ and Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6 BONUS.—Section 308b(f) of title 37, United all that follows and inserting the following: E–9 4 ...... $0.00 $3,015.30 $3,083.40 $3,169.80 $3,271.50 States Code, is amended by striking ‘‘Decem- ‘‘if increases in the retired pay of the mem- E–8 ...... 2,528.40 2,601.60 2,669.70 2,751.60 2,840.10 ber 31, 1999’’ and inserting ‘‘December 31, ber or former member under section 1401a(b) E–7 ...... 2,220.90 2,294.10 2,367.30 2,439.30 2,514.00 2002’’. of this title had been computed as provided E–6 ...... 1,973.10 2,047.20 2,118.60 2,191.50 2,244.60 (c) SELECTED RESERVE ENLISTMENT E–5 ...... 1,789.50 1,861.50 1,936.20 1,936.20 1,936.20 in paragraph (2) of that section (rather than E–4 ...... 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90 BONUS.—Section 308c(e) of title 37, United under paragraph (3) of that section).’’ E–3 ...... 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90 States Code, is amended by striking ‘‘Decem- (2)(A) The heading for section 1410 of such E–2 ...... 1,127.40 1,127.40 1,127.40 1,127.40 1,127.40 ber 31, 1999’’ and inserting ‘‘December 31, title is amended to read as follows: E–1 ...... 1,005.60 1,005.60 1,005.60 1,005.60 1,005.60 2002’’. ‘‘§ 1410. Members entering on or after August Over 18 Over 20 Over 22 Over 24 Over 26 (d) SPECIAL PAY FOR ENLISTED MEMBERS 1, 1986: restoration of COLA increases to ASSIGNED TO CERTAIN HIGH PRIORITY UNITS.— E–9 4 ...... $3,373.20 $3,473.40 $3,609.30 $3,744.00 $3,915.80 full-COLA amounts at age 62’’. E–8 ...... 2,932.50 3,026.10 3,161.10 3,295.50 3,483.60 Section 308d(c) of title 37, United States E–7 ...... 2,588.10 2,660.40 2,787.60 2,926.20 3,134.40 Code, is amended by striking ‘‘December 31, (B) The item relating to such section in E–6 ...... 2,283.30 2,283.30 2,285.70 2,285.70 2,285.70 1999’’ and inserting ‘‘December 31, 2002’’. the table of sections at the beginning of E–5 ...... 1,936.20 1,936.20 1,936.20 1,936.20 1,936.20 (e) SELECTED RESERVE AFFILIATION chapter 71 of such title is amended to read as E–4 ...... 1,593.90 1,593.90 1,593.90 1,593.90 1,593.90 E–3 ...... 1,335.90 1,335.90 1,335.90 1,335.90 1,335.90 BONUS.—Section 308e(e) of title 37, United follows: E–2 ...... 1,127.40 1,127.40 1,127.40 1,123.20 1,127.40 States Code, is amended by striking ‘‘Decem- ‘‘1410. Members entering on or after August E–1 ...... 1,005.60 1,005.60 1,005.60 1,005.60 1,005.60 ber 31, 1999’’ and inserting ‘‘December 31, 1, 1986: restoration of COLA in- 4 While serving as Sergeant Major of the Army, Master Chief Petty Officer 2002’’. creases to full-COLA amounts (f) READY RESERVE ENLISTMENT AND REEN- of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the at age 62.’’. Marine Corps, or Master Chief Petty Officer of the Coast Guard, basic pay LISTMENT BONUS.—Section 308h(g) of title 37, for this grade is $4,701.00, regardless of cumulative years of service com- (b) SURVIVOR BENEFIT PLAN.—Chapter 73 of puted under section 205 of title 37, United States Code. United States Code, is amended by striking such title is amended— 5 ‘‘December 31, 1999’’ and inserting ‘‘Decem- In the case of members in the grade E–1 who have served less than 4 (1) in section 1447(6)(A), by striking ‘‘(de- months on active duty, basic pay is $930.30. ber 31, 2002’’. termined without regard to any reduction (g) PRIOR SERVICE ENLISTMENT BONUS.— SEC. 102. PAY INCREASES FOR FISCAL YEARS 2001 under section 1409(b)(2) of this title)’’; THROUGH 2006 AT ECI PLUS ONE- Section 308i(f) of title 37, United States Code, is amended by striking ‘‘December 31, 1999’’ (2) in section 1451(h), by striking paragraph HALF PERCENT. (3); and Notwithstanding subsection (c) of section and inserting ‘‘December 31, 2002’’. (h) REPAYMENT OF EDUCATION LOANS FOR (3) in section 1452(c), by striking paragraph 1009 of title 37, United States Code, the per- (4). centage of the increase in the rates of CERTAIN HEALTH PROFESSIONALS WHO SERVE SEC. 204. EFFECTIVE DATE. monthly basic pay that takes effect under IN THE SELECTED RESERVE.—Section 16302(d) The amendments made by this title shall that section during each of fiscal years 2001 of title 10, United States Code, is amended by take effect on October 1, 1999. through 2006 shall be the percentage equal to striking ‘‘January 1, 2000’’ and inserting in the sum of one percent plus the percentage lieu thereof ‘‘January 1, 2003’’. TITLE III—THRIFT SAVINGS PLAN increase calculated as provided under sub- SEC. 105. THREE-YEAR EXTENSION OF CERTAIN SEC. 301. PARTICIPATION IN THRIFT SAVINGS section (a) of section 5303 of title 5, United BONUSES AND SPECIAL PAY AU- PLAN. THORITIES FOR NURSE OFFICER States Code, for such fiscal year (without re- (a) AUTHORITY.—Subchapter III of chapter CANDIDATES, REGISTERED NURSES, 84 of title 5, United States Code, is amended gard to whether rates of pay under the statu- AND NURSE ANESTHETISTS. by adding at the end the following: tory pay systems are actually increased by (a) NURSE OFFICER CANDIDATE ACCESSION the percentage calculated under such section PROGRAM.—Section 2130a(a)(1) of title 10, ‘‘§ 8440e. Members of the uniformed services 5303(a) during such fiscal year). United States Code, is amended by striking in active service SEC. 103. THREE-YEAR EXTENSION OF AUTHORI- ‘‘December 31, 1999’’ and inserting ‘‘Decem- ‘‘(a) PARTICIPATION AUTHORIZED.—(1) A TIES RELATING TO PAYMENT OF ber 31, 2002’’. member of the armed forces in active service CERTAIN BONUSES AND SPECIAL (b) ACCESSION BONUS FOR REGISTERED may participate in the Thrift Savings Plan PAYS. NURSES.—Section 302d(a)(1) of title 37, in accordance with this section. (a) AVIATION OFFICER RETENTION BONUS.— United States Code, is amended by striking ‘‘(2) An election to contribute to the Thrift Section 301b(a) of title 37, United States ‘‘December 31, 1999’’ and inserting ‘‘Decem- Savings Fund under paragraph (1) may be Code, is amended by striking ‘‘December 31, ber 31, 2002’’. made only during a period provided under 1999,’’ and inserting ‘‘December 31, 2002,’’. (c) INCENTIVE SPECIAL PAY FOR NURSE AN- section 8432(b) for individuals subject to this (b) REENLISTMENT BONUS FOR ACTIVE MEM- ESTHETISTS.—Section 302e(a)(1) of title 37, chapter. BERS.—Section 308(g) of title 37, United United States Code, is amended by striking ‘‘(b) APPLICABILITY OF THRIFT SAVINGS States Code, is amended by striking ‘‘Decem- ‘‘December 31, 1999’’ and inserting in lieu PLAN PROVISIONS.—Except as otherwise pro- ber 31, 1999’’ and inserting ‘‘December 31, thereof ‘‘December 31, 2002’’. vided in this section, the provisions of this 2002’’. TITLE II—RETIRED PAY subchapter and subchapter VII of this chap- (c) ENLISTMENT BONUSES FOR MEMBERS SEC. 201. REPEAL OF REDUCTION IN RETIRED ter shall apply with respect to members of WITH CRITICAL SKILLS.—Sections 308a(c) and PAY MULTIPLIER FOR POST–JULY 31, the uniformed services making contributions 308f(c) of title 37, United States Code, are 1986 MEMBERS RETIRING WITH LESS to the Thrift Savings Fund as if such mem- each amended by striking ‘‘December 31, THAN 30 YEARS OF SERVICE. bers were employees within the meaning of 1999’’ and inserting ‘‘December 31, 2002’’. Section 1409(b) of title 10, United States section 8401(11). (d) SPECIAL PAY FOR NUCLEAR-QUALIFIED Code, is amended by striking paragraph (2). ‘‘(c) MAXIMUM CONTRIBUTION FROM BASIC OFFICERS EXTENDING PERIOD OF ACTIVE SERV- SEC. 202. MODIFIED ‘‘CPI–1’’ COST-OF-LIVING AD- PAY.—The amount contributed by a member ICE.—Section 312(e) of title 37, United States JUSTMENT. of the uniformed services for any pay period Code, is amended by striking ‘‘December 31, Paragraph (3) of section 1401a(b) of title 10, out of basic pay may not exceed— 1999’’ and inserting ‘‘December 31, 2002’’. United States Code, is amended to read as ‘‘(1) for any pay period 5 percent of such (e) NUCLEAR CAREER ACCESSION BONUS.— follows: member’s basic pay for such pay period, plus Section 312b(c) of title 37, United States ‘‘(3) POST-AUGUST 1, 1986 MEMBERS.—The ‘‘(2) an amount equal to the amount of any Code, is amended by striking ‘‘December 31, Secretary shall increase the retired pay of enlistment or reenlistment bonus paid to the 1999’’ and inserting ‘‘December 31, 2002’’. each member and former member who first member under section 308, 308a, or 308f of (f) NUCLEAR CAREER ANNUAL INCENTIVE became a member of a uniformed service on title 37 in connection with an enlistment for BONUS.—Section 312c(d) of title 37, United or after August 1, 1986, by the percent equal active service. States Code, is amended by striking ‘‘any fis- to the difference between the percent deter- ‘‘(d) AGENCY CONTRIBUTIONS PROHIBITED.— cal year beginning before October 1, 1998, and mined under paragraph (2) and 1 percent, ex- No contribution under section 8432(c) of this the 15-month period beginning on that date cept that, if the percent determined under title may be made for the benefit of a mem- and ending on December 31, 1999’’ and insert- paragraph (2) is less than 3 percent, the Sec- ber of the uniformed services making con- ing ‘‘the 15-month period beginning on Octo- retary shall increase the retired pay by the tributions to the Thrift Savings Fund under ber 1, 1998, and ending on December 31, 1999, lesser of the percent so determined or 2 per- subsection (a). and any year beginning after December 31, cent.’’. ‘‘(e) CERTAIN TRANSFERS NOT CONSIDERED 1999, and ending before January 1, 2003’’. SEC. 203. CONFORMING AMENDMENTS. SEPARATIONS.—A transfer of a member from SEC. 104. THREE-YEAR EXTENSION OF CERTAIN (a) COMPUTATION OF RETIRED PAY.—(1) one armed force to another armed force BONUSES AND SPECIAL PAY AU- Chapter 71 of title 10, United States Code, is without a break in active service of more THORITIES FOR RESERVE FORCES. further amended— than 30 days shall not be considered to be a (a) SPECIAL PAY FOR HEALTH PROFES- (A) in section 1409(b)— separation from service for the purposes of SIONALS IN CRITICALLY SHORT WARTIME SPE- (i) in paragraph (1), by striking ‘‘para- establishing an entitlement of the member CIALTIES.—Section 302g(f) of title 37, United graphs (2) and (3)’’ and inserting thereof to a withdrawal from the member’s account States Code, is amended by striking ‘‘Decem- ‘‘paragraph (2)’’; and under the Thrift Savings Plan. S594 CONGRESSIONAL RECORD — SENATE January 19, 1999

‘‘(f) REGULATIONS.—The Executive Direc- ‘‘as soon as practicable’’ and all that follows the Secretary’s sole discretion, permit an in- tor, after consultation with the Secretary of through ‘‘such additional times’’ and insert- dividual entitled to educational assistance Defense, may prescribe regulations to carry ing ‘‘at such times’’. under this subchapter to elect to transfer out this section. SEC. 403. ACCELERATED PAYMENTS OF EDU- such individual’s entitlement to such assist- ‘‘(g) DEFINITIONS.—For purposes of this CATIONAL ASSISTANCE. ance, in whole or in part, to the individuals section— Section 3014 of title 38, United States Code, specified in subsection (b). ‘‘(1) the term ‘armed forces’ has the mean- is amended— ‘‘(b) An individual’s entitlement to edu- ing given the term in subsection (a)(4) of sec- (1) by inserting ‘‘(a)’’ before ‘‘The Sec- cational assistance may be transferred when tion 101 of title 10; retary shall pay’’; and authorized under subsection (a) as follows: ‘‘(2) the term ‘active service’ has the mean- (2) by adding at the end the following new ‘‘(1) To the individual’s spouse. ing given the term in subsection (d)(3) of subsection (b): ‘‘(2) To one or more of the individual’s chil- such section; and ‘‘(b)(1) When the Secretary determines that dren. ‘‘(3) the term ‘basic pay’ means basic pay it is appropriate to accelerate payments ‘‘(3) To a combination of the individuals re- that is payable under section 204 of title 37.’’. under the regulations prescribed pursuant to ferred to in paragraphs (1) and (2). (b) CLERICAL AMENDMENT.—The table of paragraph (6), the Secretary may make pay- ‘‘(c)(1) An individual electing to transfer sections at the beginning of chapter 84 of ments of basic educational assistance allow- an entitlement to educational assistance title 5, United States Code, is amended by ance under this subchapter on an accelerated under this section shall— adding after the item relating to section basis. ‘‘(A) designate the individual or individ- 8440d the following: ‘‘(2) The Secretary may pay a basic edu- uals to whom such entitlement is being cational assistance allowance on an acceler- transferred and the percentage of such enti- ‘‘8440e. Members of the uniformed services in ated basis only to an individual entitled to tlement to be transferred to each such indi- active service.’’. payment of the allowance under this sub- vidual; and SEC. 302. NONDUPLICATION OF CONTRIBUTIONS. chapter who has made a request for payment ‘‘(B) specify the period for which the trans- Section 8432b(b) of title 5, United States of the allowance on an accelerated basis. fer shall be effective for each individual des- ‘‘(3) In the event an adjustment under sec- Code, is amended— ignated under subparagraph (A). tion 3015(g) of this title in the monthly rate (1) in paragraph (1), by striking ‘‘Each em- ‘‘(2) The aggregate amount of the entitle- of basic educational assistance will occur ployee’’ and inserting ‘‘Except as provided in ment transferable by an individual under during a period for which a payment of an al- paragraph (4), each employee’’; this section may not exceed the aggregate lowance is made on an accelerated basis (2) by redesignating paragraph (4) as para- amount of the entitlement of such individual under this subsection, the Secretary shall— graph (5); and to educational assistance under this sub- ‘‘(A) pay on an accelerated basis the (3) by inserting after paragraph (3) the fol- chapter. amount the allowance otherwise payable lowing new paragraph (4) ‘‘(3) An individual electing to transfer an under this subchapter for the period without ‘‘(4) No contribution may be made under entitlement under this section may elect to regard to the adjustment under that section; this section for a period for which an em- modify or revoke the transfer at any time and ployee made a contribution under section before the use of the transferred entitlement. ‘‘(B) pay on the date of the adjustment any 8440e.’’. An individual shall make the election by additional amount of the allowance that is submitting written notice of such election to TITLE IV—MONTGOMERY GI BILL payable for the period as a result of the ad- BENEFITS the Secretary. justment. ‘‘(d)(1) The use of any entitlement trans- ‘‘(4) The entitlement to a basic educational SEC. 401. INCREASE IN RATES OF EDUCATIONAL ferred under this section shall be charged ASSISTANCE FOR FULL-TIME EDU- assistance allowance under this subchapter against the entitlement of the individual CATION. of an individual who is paid an allowance on making the transfer at the rate of one month (a) INCREASE.—Section 3015 of title 38, an accelerated basis under this subsection for each month of transferred entitlement United States Code, is amended— shall be charged at a rate equal to one that is used. (1) in subsection (a)(1), by striking ‘‘$528’’ month for each month of the period covered ‘‘(2) Except as provided in paragraph (3), an and inserting ‘‘$600’’; and by the accelerated payment of the allowance. individual using entitlement transferred (2) in subsection (b)(1), by striking ‘‘$429’’ ‘‘(5) A basic educational assistance allow- under this section shall be subject to the and inserting ‘‘$488’’. ance shall be paid on an accelerated basis provisions of this chapter in such use as if (b) EFFECTIVE DATE.—The amendments under this subsection as follows: such individual were entitled to the edu- made by subsection (a) shall take effect on ‘‘(A) In the case of an allowance for a cational assistance covered by the trans- October 1, 1999, and shall apply with respect course leading to a standard college degree, ferred entitlement in the individual’s own to educational assistance allowances paid for at the beginning of the quarter, semester, or right. months after September 1999. However, no term of the course in a lump-sum amount ‘‘(3) Notwithstanding section 3031 of this adjustment in rates of educational assist- equivalent to the aggregate amount of title, a child shall complete the use of any ance shall be made under subsection (g) of monthly allowance otherwise payable under entitlement transferred to the child under section 3015 of title 38, United States Code, this subchapter for the quarter, semester, or this section before the child attains the age for fiscal year 2000. term, as the case may be, of the course. of 26 years. ‘‘(B) In the case of an allowance for a SEC. 402. TERMINATION OF REDUCTIONS OF ‘‘(e) In the event of an overpayment of edu- course other than a course referred to in sub- BASIC PAY. cational assistance with respect to an indi- paragraph (A)— (a) REPEALS.—(1) Section 3011 of title 38, vidual to whom entitlement is transferred ‘‘(i) at the later of (I) the beginning of the United States Code, is amended by striking under this section, such individual and the course, or (II) a reasonable time after the re- subsection (b). individual making the transfer under this quest for payment by the individual con- (2) Section 3012 of such title is amended by section shall be jointly and severally liable cerned; and striking subsection (c). to the United States for the amount of the ‘‘(ii) in any amount requested by the indi- (3) The amendments made by paragraphs overpayment for purposes of section 3685 of vidual concerned up to the aggregate amount (1) and (2) shall take effect on the date of the this title. of monthly allowance otherwise payable enactment of this Act and shall apply to in- ‘‘(f) The Secretary shall prescribe regula- under this subchapter for the period of the dividuals whose initial obligated period of tions for purposes of this section. Such regu- course. active duty under section 3011 or 3012 of title lations shall specify the manner and effect of ‘‘(6) The Secretary shall prescribe regula- 38, United States Code, as the case may be, an election to modify or revoke a transfer of tions for purposes of making payments of begins on or after such date. entitlement under subsection (c)(3).’’. basic educational allowance on an acceler- (b) TERMINATION OF REDUCTIONS IN (b) CLERICAL AMENDMENT.—The table of ated basis under this subsection. Such regu- PROGRESS.—Any reduction in the basic pay sections at the beginning of such chapter is lations shall specify the circumstances under of an individual referred to in section 3011(b) amended by inserting after the item relating which accelerated payments should be made of title 38, United States Code, by reason of to section 3019 the following new item: such section 3011(b), or of any individual re- and include requirements relating to the re- ferred to in section 3012(c) of such title by quest for, making and delivery of, and re- ‘‘3020. Transfer of entitlement to basic edu- reason of such section 3012(c), as of the date ceipt and use of such payments.’’. cational assistance.’’. of the enactment of this Act shall cease com- SEC. 404. TRANSFER OF ENTITLEMENT TO EDU- TITLE V—REPORT CATIONAL ASSISTANCE. mencing with the first month beginning SEC. 501. ANNUAL REPORT ON EFFECTS OF INI- after such date, and any obligation of such (a) AUTHORITY TO TRANSFER TO FAMILY TIATIVES ON RECRUITMENT AND individual under such section 3011(b) or MEMBER.—Subchapter II of chapter 30 of title RETENTION. 3012(c), as the case may be, as of the day be- 38, United States Code, is amended by adding (a) REQUIREMENT FOR REPORT.—On Decem- fore such date shall be deemed to be fully at the end the following new section: ber 1 of each year, the Secretary of Defense satisfied as of such date. ‘‘§ 3020. Transfer of entitlement to basic edu- shall submit to Congress a report that sets (c) CONFORMING AMENDMENT.—Section cational assistance forth the Secretary’s assessment of the ef- 3034(e)(1) of title 38, United States Code, is ‘‘(a) The Secretary may, for the purpose of fects that the provisions of this Act and the amended in the second sentence by striking enhancing recruiting and retention, and at amendments made by the Act are having on January 19, 1999 CONGRESSIONAL RECORD — SENATE S595 recruitment and retention of personnel for time since the late 1970’s, military best trained, best equipped, best dis- the Armed Forces. readiness is suffering significantly. We ciplined and most highly skilled and (b) FIRST REPORT.—The first report under are now paying the price for asking our motivated military force in the world. this section shall be submitted not later people to do much more with less and Operation Desert Fox was a large-scale than December 1, 2000. less. As the Service Chiefs have testi- military operation that was carried out THE MILITARY RECRUITING AND RETENTION fied, the feedback from our soldiers, flawlessly. It involved 40,000 troops IMPROVEMENT ACT OF 1999—SUMMARY sailors, airmen and marines is clear from bases virtually around the world. MILITARY PAY RAISE and unambiguous. Low pay, the 40 per- Over 40 ships performed strike and sup- 4.8% effective January 1, 2000. cent retirement system, military port roles. Over 600 aircraft sorties Pay raises for FY 2001–2006 ECI + 0.5%. health and education benefits that were flown in 4 days, and 300 of these PAY TABLE REFORM could stand a shot in the arm—we now were night strike operations. Targeted raise—weighted to mid-career have plenty of evidence these things General Zinni, the commander in NCO/Officers. are keeping us from retaining our best charge of Operation Desert Fox, point- Minimum 4.8%. and brightest. Equally troubling, our ed out that even in peacetime an exer- Maximum 10.3%. cise of this scale is very dangerous and Effective July 1, 2000. recruiting picture across the services is dismal. These downward trends cannot stressful. To have achieved all of the MILITARY RETIREMENT continue. The Chairman of the Joint objectives of Operation Desert Fox Restore 50% basic pay retirement benefit Chiefs of Staff warns that ‘‘there is no without a single United States or Brit- at 20 years of service as proposed by Sec- ish casualty and without any degrada- retary Cohen and the Joint Chiefs. more shock absorbency left in the sys- tem,’’ and further that if the trends tion of our ongoing efforts in Bosnia, MONTGOMERY GI BILL ENHANCEMENTS continue, we will ‘‘find ourselves in a Korea, and other critical areas around Eliminate $1200 contribution required of nosedive that might cause irreparable the world was truly remarkable. members who elect to participate in the GI Mr. President, the key to the success Bill. damage to this great force.’’ The Army and Air Force Chiefs of Staff, the Chief of Operation Desert Fox—and the key Provide Services with discretionary au- to the strength and capability of our thority to permit members to transfer bene- of Naval Operations, and the Com- Armed Forces—is the men and women fits to immediate family members. mandant of the Marine Corps all agree who serve in uniform. We must do ev- Increase monthly GI Bill benefit from $528 that we are only five years away from erything we can to ensure that we con- to $600 for members who serve at least 3 a hollow force. Put simply, we are plac- tinue to recruit, train and retain the years, and from $429 to $488 for members who ing at risk the future readiness of the serve less than 3 years. best of America to serve in our Armed Permit accelerated lump sum benefits for finest fighting force in the world. Mr. President, this bill provides the Forces. entire term, semester or quarter, or for en- Over the past year, there have been resources to begin to reverse the tire courses not leading to college degree. growing indications that the military steady downward spirals we’ve seen in THRIFT SAVINGS PLAN services were beginning to have prob- military recruiting and retention. It is Allow members to contribute up to 5% of lems in both recruiting and retention, basic pay, and all or any part of any enlist- also a strong signal to our most impor- particularly retaining highly skilled ment or reenlistment bonus, to the Federal tant asset—our men and women in uni- mid-grade officers and enlisted whose civilian employees Thrift Savings Plan. form and their families—that we are skills are in demand in the private sec- EXTENSION OF CRITICAL BONUS AND SPECIAL serious about taking care of them. In tor. To address these problems, last PAY AUTHORITIES my view, it is nothing more than ade- month Secretary Cohen and General Extend for three years (through December quately compensating our people for Shelton announced a package of im- 31, 2002) authority to pay bonuses and special the job they are already performing. provements in military pay and retire- pays critical to recruiting and retention of And it is exactly the kind of ‘‘fix’’ we ment benefits that will be part of military members. Authority to pay these in the Congress can, and should, sup- President Clinton’s fiscal year 2000 bonuses and special pays expires December port. 31, 1999 under current law. budget. In testimony before the Armed I would like to make one additional Services Committee on January 5 of ANNUAL REPORTING REQUIREMENT point. While we have many pressing this year, General Shelton and all of Require DOD to report annually on the im- longer-term concerns, such as mod- thee Joint Chiefs said that enactment pact of these programs on recruiting and re- ernizing and recapitalizing our forces tention. of this package of pay and benefits was for the next century and doing some- their highest priority. Critical Bonus and Special Pay Authorities thing about the billions of dollars of Extended Through December 31, 1999: Mr. President, the bill my colleagues Enlistment Bonuses for Members With excess infrastructure the services con- and I are introducing today includes all Critical Skills. tinue to carry, we simply can’t afford three parts of the Defense Depart- Selected Reserve Enlistment Bonus. to take a ‘‘wait and see’’ approach ment’s pay and retirement package, as Prior Service Enlistment Bonus. when it comes to taking care of our well as some of the key recommenda- Ready Reserve Enlistment and Reenlist- people. To do otherwise places at risk tions from the recent report of the ment Bonus. our future readiness and everything Congressional Commission on Reenlistment Bonus for Active Members. we’ve worked for, like the ability to Servicemembers and Veterans Transi- Selected Reserve Reenlistment Bonus. mount an operation like ‘‘Desert Fox’’ Selected Reserve Affiliation Bonus. tion Assistance. Aviation Officer Retention Bonus. and execute it brilliantly. We can’t let First, it includes an across-the-board Special Pay for Nuclear-Qualified Officers that happen. pay raise for all military members of Extending Period of Active Service. Mr. LEVIN. Mr. President, I am 4.8 percent, effective January 1, 2000. Nuclear Career Accession Bonus. pleased to join Senator CLELAND, Sen- This is slightly higher than the 4.4 per- Nuclear Career Annual Incentive Bonus. ator ROBB, and a number of my col- cent recommended by Secretary Cohen Special Pay for Health Professionals in leagues today in introducing The Mili- and the Joint Chiefs, but it carries out Critically Short Wartime Specialties. tary Recruiting and Retention Im- their stated objective of increasing Special Pay for Enlisted Members Assigned provement Act of 1999. Secretary military pay in FY2000 by one-half a to Certain High Priority Units. Cohen, General Shelton, and the Joint Repayment of Education Loans for Certain percentage point above the annual in- Health Professionals Who Serve in the Se- Chiefs have told us that the single crease in the Employment Cost Index lected Reserve. greatest challenge they face right now (ECI). This 4.8 percent increase will be Nurse Officer Candidate Accession Pro- is recruiting and retaining the people the largest increase in military pay gram. we need to man our military services. since 1982. Accession Bonus for Registered Nurses. This legislation will go a long way to In addition, our legislation calls for Incentive Special Pay for Nurse Anes- ensuring that we continue to attract annual increases in military pay of thetists. and retain the high quality people that one-half percent above the annual in- Mr. ROBB. Mr. President, I am make up our military services today. crease in the ECI in each year of the pleased to lend my support to the Mili- Just last month, the men and women Future Years Defense Plan. Again, this tary Recruiting and Retention Im- of our Armed Forces demonstrated reflects DOD’s current plan, and is de- provement Act of 1999. For the first once again that they are by far the signed to bring military pay more in S596 CONGRESSIONAL RECORD — SENATE January 19, 1999 line with private sector wages as meas- pay these bonuses and special pays This past year once again dem- ured by the ECI. runs out at the end of this year. Re- onstrated the importance of guarantee- The second part of DOD’s plan in- newing this authority now through the ing that our military forces are well cluded in our legislation is a targeted end of 2002 will reassure military per- prepared to meet any challenge. How- pay raise that would be effective July sonnel managers—and military mem- ever, I am very concered about the fu- 1, 2000. Taken in conjunction with the bers themselves—that these crucial au- ture readiness of our Armed Forces. I January 1 4.8-percent across-the-board thorities will continue to be available am troubled by reports of declining pay increase, this targeted pay raise to them. readiness, poor retention, and recruit- increases the pay of mid-grade officers Mr. President, detailed costing of ing shortfalls. and enlisted personnel, and also for key this legislation will have to be done by Two years ago the Army reduced its promotions points, between 4.8 and 10.3 the Congressional Budget Office over recuiting standards, and now the Navy percent. the next several weeks. In my view, has followed suit. Secretary of the The third part of the DOD plan in- however, the provisions contained in Navy Danzig has announced that the cluded in this legislation is a revision this legislation will not require us to Navy is lowering its educational stand- to the Military Retirement Reform Act increase the funding for national de- ards for new recruits. This and other of 1986. This portion of the legislation fense above the levels I understand will reductions in personnel standards by would restore the 50-percent basic pay be proposed in President Clinton’s the Navy are taking place because the benefit for military members who re- FY2000–2006 Future Years Defense Plan. Navy fell short of its recruiting goals tire at 20 years of service. We should be able to accommodate any last year for the first time since the In addition to the package of pay and increase in funding necessary for these draft ended in 1973. Secretary Danzig retirement benefits proposed by Sec- initiatives from lower priority pro- also recently announced that retention retary Cohen and the Joint Chiefs, the grams. of Naval Officers is so low that the I believe this package of pay and ben- legislation we are introducing today Navy will have 50 percent fewer officers efits is fair and will ensure that we includes several key recommendations than required to man its ships in the continue to attract and retain high from the recent report of the Congres- coming years. These are serious con- quality people to serve in our armed sional Commission on Servicemembers cerns that must be addressed, and this forces. All of us are committed to the and Veterans Transition Assistance legislation does so. well-being of our military members specifically designed to help the mili- Congress must do all it can to pro- and their families. There may be some tary services recruiting and retention vide for our men and women in the efforts. aspects of this legislation that require improvement or modification, and that Army, Navy, Air Force, and Marine The most important of these rec- Corps. They have worked hard for us. ommendations is a series of improve- can be done as the Armed Services Committee begins to review this bill Now we must provide the support they ments to the Montgomery GI Bill. Edu- need to do their jobs and care for their cation benefits are a very important and any other bills that are introduced to address the concerns we all have in families. attraction for young people entering The Military Recruiting and Reten- the armed forces. Our legislation would this area. In closing, I want to recognize the tion Improvement Act is a substantial increase the basic GI Bill benefit from leadership of the author of this legisla- step toward meeting these urgent $528 to $600 per month and eliminate tion, Senator MAX CLELAND. Fortu- needs of our service members, and will the current requirement for entering nately for the Senate and for the men encourage more of these highly skilled service members to contribute $1,200 of and women of our armed forces, he will and well-trained men and women to re- their own money to participate in the continue to serve as the Ranking main in the military ranks. I also hope program. Both of these changes were Democratic member of the Personnel that the provisions in this act will en- recommended by the Congressional Subcommittee of the Armed Services courage more of the Nation’s young Commission of Servicemembers and Committee during the 106th Congress. men and women to join the military Veterans Transition Assistance to in- Senator ROBB of our Committee has and serve their country in that way. crease the attractiveness of the GI Bill also played an important role in draft- Our proposal increases base pay for to potential new recruits. ing this legislation. Both Senator our troops. The Commission also recommended, CLELAND and Senator ROBB have a tre- It contains pay table reforms and and our legislation includes, a provi- mendous commitment to the welfare of guaranteed pay raises above inflation. sion to allow service members to trans- the men and women of the Armed It restores equity to the military re- fer their earned GI bill benefits to one Forces and their families. tirement system by providing active or more immediate family members. It Mr. President, I look forward to duty service members 50 percent retire- is my view, Mr. President, that this working with Senator CLELAND, Sen- ment after 20 years of service. will prove to be a very powerful re- ator ROBB, and all of the cosponsors of It allows service members to transfer cruiting and retention incentive. this legislation and with all of our col- hard-earned educational benefits to This legislation also includes a provi- leagues on the Armed Services Com- others in their family. sion that would allow military mem- mittee in the months ahead to secure It provides stability by extending au- bers to participate in the current enactment of this important legisla- thorities for bonus pay and special pay. Thrift Savings Plan available to Fed- tion. I’m reminded of the words of Presi- eral civil servants. Under our proposal, Mr. KENNEDY. Mr. President, all of dent Kennedy during an address at the which follows the recommendation of us commend our troops for their superb U.S. Naval Academy in August of 1963. the Congressional Commission on performance. Their extraordinary ef- That is what he said about a career in Servicemembers and Veterans Transi- forts last year in Operation Desert Fox, the Navy: tion Assistance, military members Hurricane Mitch, Operation Provide I can imagine a no more rewarding career. would be permitted to contribute up to Comfort, and in Kenya, and Tanzania And any man who may be asked in this cen- 5 percent of their basic pay, and all or highlighted only a few of their signifi- tury what he did to make his life worth any part of any enlistment or reenlist- cant contributions to the Nation in while, I think can respond with a good deal ment bonus, to the Thrift Savings 1998. of pride and satisfaction: ‘‘I served in the Plan. America continues to rely heavily on United States Navy.’’ Finally, this legislation includes a its Armed Forces, and we want our My brother was a Navy man, but I’m very important provision that extends service members and families to know sure that veterans of all the other serv- for 3 years—through December 31, how proud we in Congress are of their ices in those years felt the same way. 2002—the authority for the military contributions to our country and to I want to do all I can to see that our services to pay a number of bonuses our national defense. We are deeply in- service men and women feel the same and special and incentive pays that are debted to them for their service, and way today and on into the next cen- critical to recruiting and retaining we have the highest respect for their tury. These personnel issues are impor- highly skilled military members. dedication, their patriotism, and their tant, and Congress has to deal with Under current law, the authority to courage. them effectively and responsibly. The January 19, 1999 CONGRESSIONAL RECORD — SENATE S597 Military Recruiting and Retirement elimination of waste and redundancy, of Staff as they outlined their prior- Improvement Act moves our Nation in and that includes closing down mili- ities for the fiscal year 2000 budget. the right direction, and I look forward tary facilities (bases and depots) that Without exception, each named re- to early and favorable action on it by don’t make military-economic sense cruitment and retaining skilled person- the Senate. anymore. Second, as we evaluate our nel as their top priority. The Joint Mr. LIEBERMAN. Mr. President, I readiness we must persistently ask, Chiefs asked us unequivocally to ad- want to thank Senator CLELAND and ready for what? What are the threats dress this issue, and I believe the bill Senator LEVIN for their leadership in we face today and what are the emerg- we introduce today places us on the developing and offering this bill, and I ing threats we will face tomorrow. If proper path. am pleased to join the other Demo- we do not develop and field the right This bill will make a difference to cratic members of the Senate Armed organizations, weapons, and concepts men and women when they are decid- Services Committee in cosponsoring to meet future challenges, and as a re- ing to begin or continue a military ca- this initiative aimed at addressing the sult fail to successfully meet one of reer. The 4.8 percent pay increase will problem of attracting and retaining the those future challenges to our security, make their daily lives easier and more right men and women in the right it will not matter much to remind our- enjoyable. Reforming the pay table to numbers for our military. The effec- selves how ready we were in 1999 when provide increases in salaries for tiveness of our military, and its readi- the threats are probably less than they midcareer NCOs and officers will not ness to act immediately to protect our will be then. only reward these dedicated men and national interests, must always be a As Under Secretary of Defense women for the years they have served priority concern of Congress, as the Gansler has pointed out, the money our country, but provide an incentive continuing challenges around the world projected to be added to the defense for them to continue their valued today demonstrate. There are few budget, or any increase we can reason- work. Renewing the various bonuses things that we will do this year that ably foresee, won’t be enough to com- for three more years will let our men are more important, because the secu- pletely pay for both increasing current and women in uniform know that we rity of our country rests squarely on readiness and meeting the moderniza- realize and appreciate the sacrifices the shoulders of the men and women tion requirements of all the Services. they make performing dangerous mis- that provide our defenses and protect So it is extremely important that we sions for months at a time far from our interests. The outstanding per- take extraordinary measures to be sure home. formance of our forces in Desert Fox that we are spending our money wisely. Perhaps the most unique provisions shows that the American military re- There is no doubt that spending our of the Military Recruiting and Reten- mains more than equal to the task, and money to adequately and fairly com- tion Improvement Act are the edu- that we have what is unequivocally the pensate our military men and women is cational benefits. Military personnel number one force in the world. In fact, the wisest use of our defense dollars. would no longer have to contribute it may well be the best we have ever Therefore I am very proud that we $1,200 to take advantage of the Mont- fielded. Even at the height of the cold have recognized this fact by offering gomery GI bill and they would received war, with the largest military budgets this bill outside the normal defense au- increased monthly benefits. In addi- ever, it is difficult to see those units thorization process. Doing so signals tion, the Service Secretaries would be being able to routinely execute the the importance we place on our mili- given the discretion to allow military range of complex operations with the tary personnel. I think it is a good bill. personnel who qualify to transfer their expertise that our units today are I support spending what is necessary. education benefit to a spouse or child. doing. And I think we have gotten it mostly Education is vital in today’s society, Nonetheless, our military faces readi- right. yet financing needed training is an ness problems, many of them serious. However, I consider this a good point enormous burden to shoulder. I believe They include falling recruiting and re- of departure, not a final product. I be- that many of our men and women in tention of critical skills, aging equip- lieve we have not yet done all of the uniform choose to leave the service be- ment that costs more to keep operat- critical analysis necessary to know cause they must find a job which will ing at acceptable levels of reliability, a where the priority should go within the allow them to pay for their children’s need for more support services for a broad category of pay and allowances education. With the provisions in this force with a high percentage of married to most effectively attract and retain bill, military personnel can continue personnel, and frequent deployments. the right people. I hope the Senate their careers and more readily afford Some of these problems will get much Armed Services Committee will make the cost of educating their children. more serious unless we act to fix them this task our highest priority when it Mr. President, taking care of Ameri- soon. The military Chiefs of Staff de- is referred to our committee for action. ca’s military personnel is one of the serve credit for persevering in keeping I am sure we will act in a completely most serious responsibilities Congress these challenges to our readiness be- bipartisan way to arrive at the best re- has. Every day our men and women in fore us. President Clinton also deserves sult possible. It is a proud bipartisan uniform risk their lives to defend our credit for his decision to increase the tradition of the Senate Armed Services country and the principles we cham- defense budget to address these impor- Committee that attracting, retaining, pion. It is our obligation to let them tant problems. and providing adequately for our men know that we appreciate the sacrifices But if this increase only fixes the and women in uniform is among our they make on our behalf. If we do not, worst of the short term readiness prob- most important responsibilities. the entire country will suffer. lems and diverts us from seriously ad- Mr. REED. Mr. President, today I Finding the best ways to improve our dressing the hard long-term questions join my colleagues as an original co- troop’s quality of life is a difficult and of readiness and modernization that sponsor of Senator Cleland’s Military complex task. The Military Recruiting face us, it could do us as much harm as Recruiting and Retention Improvement and Retention Improvement Act is a good. And if it generates a partisan de- Act of 1999. sound proposal, but it is only the be- bate over who can increase the defense I am glad we are introducing this bill ginning to a comprehensive solution. budget the most, we will be rightly today because it demonstrates our in- We will not find a solution if Demo- criticized for trying to solve our in- terest and support for one of the great- crats and Republicans do not work to- creasingly complex security problems est needs of our fighting men and gether. Indeed, care of America’s by throwing money at them, which women—improved pay and benefits. As troops has always been an issue in makes no more sense as a response to my colleagues know, this is one of the which we have been united and it is my our military problems than it did for most serious issues likely to come be- sincere hope that this tradition can our social problems. fore the Armed Services Committee continue in the 106th Congress. I think what we are spending money this year. Mr. BINGAMAN. Mr. President, I rise on is just as important as how much we Last week, I attended my first hear- to make a few remarks concerning the are spending. First, we must demand ing as a new member of the committee. Military Recruiting and Retention Im- 100 percent cost effectiveness, the I carefully listened to the Joint Chiefs provement Act introduced today by my S598 CONGRESSIONAL RECORD — SENATE January 19, 1999 esteemed colleague, Senator CLELAND. proceed to improve recruitment and re- or her exemption from Social Security, During the last session, the Joint tention that lies at the heart of both under my bill. Of course, this measure Chiefs testified to the need for improv- bills. As I indicated, recruitment and would not permit ministers who al- ing pay and retirement for military retention are affected by a wide variety ready have reached retirement age to personnel as a means to improvement of causes, only some of which may be gain access to the Social Security pro- recruitment and retention of service financial. Senator CLELAND’s bill calls gram. members. This bill proposes some im- for an annual report on the impact of This bill primarily would benefit portant steps to implement those the provisions of the bill on recruit- modestly paid clergy, who are among needs, including the extension of criti- ment and retention. I believe such an the most likely to need Social Security cal bonus and special pay authorities, assessment is required. I believe as benefits upon retirement. Many chose and deserves careful consideration by well, that before the Senate approves not to participate in the Social Secu- the members of the Senate. It is gen- legislation, however, it needs to have a rity program early in their careers, be- erally acknowledged, however, that the more informed view of factors affecting fore they fully understood the rami- way to improve recruitment and reten- recruitment and retention and of the fications of filing for an exemption. If enacted, this measure would raise tion goes beyond a bigger paycheck. potential impact of increasing assist- about $45 million over the next five Senator CLELAND’s bill includes an im- ance to military personnel on pay and years, according to the Congressional portant provision directed toward benefits provided to defense and gov- Budget Office. CBO has scored the bill other motivations to choose military ernment civilian employees. A report as a revenue raiser and, as a result, it service. I’m speaking of enhancements is due soon from the Department of De- will require no budget offset. Over the to the Montgomery GI bill for edu- fense addressing some of those issues. I long-term, the legislation would cost cation benefits. urge my colleague to pay close atten- Mr. President, this bill will provide money, but I do not expect its costs to tion to its findings and seek answers to be that significant because CBO has es- major new educational benefits to serv- the additional questions I have posed timated that only about 3,500 members ice members and their families that in determining how to proceed with of the clergy would exercise the option will serve as an incentive to attract legislation that meets national secu- that this bill provides. high quality recruits to the military. rity and budgetary requirements. The need for this legislation was By improving the educational attain- brought to my attention by the distin- ment of service personnel and their By Mr. SMITH of New Hampshire guished bishop in Manchester, New families, the nation stands to benefit (for himself, Mr. MOYNIHAN, and Hampshire, Reverend Bishop O’Neil. He in the long term with a better educated Mr. MACK): made me aware of the hardships facing workforce. Surely, we are now able to S. 170. A bill to permit revocation by individual ministers who may or may observe the benefits of full GI bill as- members of the clergy of their exemp- not have any retirement income. The sistance for veterans of World War II, tion from Social Security coverage; to bill also has the endorsement of the the Korean War and the Vietnam war the Committee on Finance. U.S. Catholic Conference. who were able to receive sufficient re- OPEN SEASON FOR CLERGY TO ENROLL IN SOCIAL I want to thank my principal cospon- source to complete college and post- SECURITY sors, Senators MOYNIHAN and MACK, for graduate degree programs in com- Mr. SMITH of New Hampshire. Mr. their support of this much-needed leg- pensation for military service. The na- President, today I am introducing a islation. Let me also point out that tion as a whole has prospered by the bill to allow qualified members of the this measure is identical to Title 8 of talented and trained workforce who clergy of all faiths to participate in the H.R. 3433, the Ticket-to-Work Act, benefitted from the GI bill. Social Security program. which passed the House of Representa- Senator CLELAND’s bill goes beyond This bill would provide a two-year tives by a vote of 410 to 1 last June. even those benefits which, I believe ‘‘open season’’ during which certain In closing, this bill gives members of were only extended to service members ministers who previously had filed for the clergy a limited opportunity to en- themselves. According to the legisla- an exemption from Social Security roll in the Social Security system, tion proposed, the military services coverage could revoke their exemption. similar to those provided by Congress can choose to permit service members These members of the clergy would be- in 1977 and 1986. Mr. President, I hope to transfer those educational benefits come subject to self-employment taxes, that all of my colleagues will support to immediate family members should and their earnings would be credited this legislation, which is so important they choose not to use them for them- for Social Security and Medicare pur- to a number of clergy in the United selves. Again, I believe the nation’s poses. States. labor force will benefit greatly from Before 1968, a minister was exempt Mr. President, I ask unanimous con- such flexibility, not to mention the from Social Security coverage unless sent that the text of the bill be printed families of our men and women in uni- he or she chose to elect coverage. Since in the RECORD. form. 1968, ministers have been covered by There being no objection, the bill was Educational benefits provided by the Social Security unless they file an ir- ordered to be printed in the RECORD, as Military Recruiting and Retention Im- revocable exemption with the Internal follows: provement Act would be increased to Revenue Service, usually within two S. 170 reflect the rising cost of education. years of beginning their ministry. Be it enacted by the Senate and House of Rep- Monthly benefits would increase from On two other occasions, in 1977 and resentatives of the United States of America in Congress assembled, $528 to $600 per month for member who again in 1986, ministers were given a SECTION 1. REVOCATION BY MEMBERS OF THE serve at least three years, and from similar opportunity to revoke their ex- CLERGY OF EXEMPTION FROM SO- $429 to $498 per month for those who emption from Social Security cov- CIAL SECURITY COVERAGE. serve less than three years. Lump sum erage. Despite the existence of these (a) IN GENERAL.—Notwithstanding section tuition assistance could also be pro- brief ‘‘open season’’ periods, many ex- 1402(e)(4) of the Internal Revenue Code of vided under certain circumstances. empt ministers did not take advantage 1986, any exemption which has been received Mr. President, these matters are of or have not had the opportunity to under section 1402(e)(1) of such Code by a duly ordained, commissioned, or licensed really matters requiring bipartisan co- revoke their exemption from Social Se- minister of a church, a member of a religious operation in the Congress that will curity coverage. Because the exemp- order, or a Christian Science practitioner, benefit our service personnel and the tion from Social Security is irrev- and which is effective for the taxable year in Nation. I understand that Senator ocable, there is no way for them to which this Act is enacted, may be revoked by WARNER, Chairman of the Armed Serv- gain access to the program under cur- filing an application therefor (in such form ices Committee, has introduced similar rent law. and manner, and with such official, as may legislation to that offered by Senator Only an ‘‘individual who is a duly or- be prescribed in regulations made under chapter 2 of such Code), if such application is CLELAND, myself, and others. I am dained, commissioned, or licensed min- filed no later than the due date of the Fed- hopeful that we will review these bills ister of a church, or a member of a reli- eral income tax return (including any exten- in detail in the Armed Services Com- gious order who has not taken a vow of sion thereof) for the applicant’s second tax- mittee to determine the best way to poverty,’’ would be able to revoke his able year beginning after December 31, 1999. January 19, 1999 CONGRESSIONAL RECORD — SENATE S599 Any such revocation shall be effective (for The Congressional Budget Office esti- of our environmental needs with the purposes of chapter 2 of such Code and title mates that this legislation would affect most effective and efficient regulatory II of the Social Security Act), as specified in approximately 3,500 members of the framework. the application, either with respect to the The scientific data indicate that the applicant’s first taxable year beginning after clergy and would increase revenues by December 31, 1999, or with respect to the ap- about $45 million over the next five 1990 Amendments did not go far enough plicant’s second taxable year beginning after years. Similar legislation was passed to prevent continued human health and such date, and for all succeeding taxable both in the 1977 Social Security ecosystem damage from SO2 and NOX. years; and the applicant for any such revoca- Amendments (Section 316) and in the We now know that ozone pollution, tion may not thereafter again file applica- Tax Reform Act of 1986 (Section 1704). caused in large part by NOX emissions, tion for an exemption under such section This bill has been endorsed by the can have a terrible effect on human 1402(e)(1). If the application is filed after the United States Catholic Conference and respiratory functions. The Harvard due date of the applicant’s Federal income University School of Public Health’s tax return for a taxable year and is effective the National Conference of Catholic with respect to that taxable year, it shall in- Bishops. It is a simple but much-needed 1996 study of ozone pollution estab- clude or be accompanied by payment in full measure, and I urge every member of lished a strong link between ground of an amount equal to the total of the taxes the Senate to support it. level ozone pollution and 30,000–50,000 that would have been imposed by section 1401 emergency room visits during the 1993 of such Code with respect to all of the appli- By Mr. MOYNIHAN (for himself, and 1994 ozone seasons. Ecosystems cant’s income derived in that taxable year Mr. LEVIN, Mr. LEAHY, Mr. continue to suffer, too. The 1998 report which would have constituted net earnings SCHUMER, Mrs. BOXER, and Mr. of the National Acid Precipitation As- from self-employment for purposes of chap- CLELAND). sessment Program (NAPAP) indicates ter 2 of such Code (notwithstanding para- S. 171. A bill to amend the Clean Air graph (4) or (5) of section 1402(c) of such that sulfate concentrations of surface Code) but for the exemption under section Act to limit the concentration of sulfur waters in the Southern Appalachian 1402(e)(1) of such Code. in gasoline used in motor vehicles; to Mountains have been increasing stead- (b) EFFECTIVE DATE.—Subsection (a) shall the Committee on Environment and ily for more than a decade, making for apply with respect to service performed (to Public Works. an increasingly inhospitable environ- the extent specified in such subsection) in THE ACID DEPOSITION AND OZONE CONTROL ACT ment for trout and other fish species. taxable years beginning after December 31, OF 1999 1999, and with respect to monthly insurance There are other types of problems, too. benefits payable under title II of the Social Visitors to our nation’s national parks Security Act on the basis of the wages and By Mr. MOYNIHAN (for himself, and wilderness areas find that it is self-employment income of any individual Mr. SCHUMER, and Mr. more difficult than ever before to enjoy for months in or after the calendar year in LIEBERMAN): these scenic vistas. It is becoming in- which such individual’s application for rev- S. 172. A bill to reduce acid deposi- creasingly difficult to see through the ocation (as described in such subsection) is tion under the Clean Air Act, and for haze which clogs the air in our na- effective (and lump-sum death payments other purposes; to the Committee on tional parks. payable under such title on the basis of such Environment and Public Works. wages and self-employment income in the Scientists have produced volumes of case of deaths occurring in or after such cal- THE CLEAN GASOLINE ACT OF 1999 scientific literature on ozone, acid dep- endar year). Mr. MOYNIHAN. Mr. President, I rise osition, regional haze, and other air Mr. MOYNIHAN. Mr. President, today to introduce two bills which will quality problems over the past decade. today I join my colleague, Senator BOB make significant reductions in the pol- We now know much more about the SMITH of New Hampshire, in introduc- lutants which most degrade our na- causes of these problems than we did in ing a bill to allow certain members of tional air quality. The Acid Deposition 1990. We know that NOX emissions, the clergy who are currently exempt and Ozone Control Act of 1999 and the which we underestimated as a cause of from Social Security an open season to Clean Gasoline Act of 1999 would re- air pollution, in fact play an important ‘‘opt in.’’ duce sulfur dioxide and nitrogen oxide role in the formation of ground level Under section 1402 of the Internal emissions through national ‘‘cap and ozone, acide deposition, and nitrogen Revenue Code, a member of the clergy trade’’ programs, and reduce the sulfur deposition. We know that sulfur diox- who is conscientiously, or because of content in gasoline, respectively. ide not only contributes significantly religious principles, opposed to partici- We have come a long way since the to acid deposition, but also to reduced pation in a public insurance program Clean Air Act Amendments of 1990. visibility in our great scenic vistas. generally, may elect to be exempt from Since that last reauthorization effort, The most recent NAPAP report re- Social Security coverage and payroll we have successfully reduced emissions flects this changing body of knowledge. taxes by filing an application of exemp- of the pollutants we set out to regulate The NAPAP report notes that NOX tion with the Internal Revenue Service and tremendously expanded our under- make a highly significant contribution within two years of beginning the min- standing of the causes and effects of to the occurrence of acid deposition istry. To be eligible for the exemption, major environmental problems such as and nitrogen saturation on both land the member of the clergy must be an acid deposition, ozone pollution, de- and water. According to NAPAP, a ma- ‘‘individual who is a fully ordained, creased visibility, and eutrophication jority of Adirondack lakes have not commissioned, or licensed minister of a of coastal waters. We can be proud of shown recovery from high acidity lev- church, or a member of a religious these accomplishments, but we have els first detected decades ago. Forests, order who has not taken a vow of pov- along way to go yet. Since 1990 we have streams, and rivers outside of New erty.’’ Once elected this exemption is learned, for instance, that the sulfur York, in the Front Range of Colorado, irrevocable. dioxide (SO2) emissions reductions re- the Great Smoky Mountains of Ten- This legislation would allow mem- quired under the Clean Air Act Amend- nessee, and the San Gabriel and San bers of the clergy who are not eligible ments of 1990 are insufficient to pre- Bernardino Mountains of California are for Social Security a two-year open vent continued damage to human also now showing the effects of acidifi- season in which they could revoke health and sensitive ecosystems. We cation and nitrogen saturation. their exemption. At the time of exemp- have also learned that nitrogen oxides And mountains are not the only eco- tion, many clergy did not fully under- (NOX), which we largely ignored nine systems affected. The Ecological Soci- stand the ramifications of their ac- years ago, are significant contributors ety of America, the nation’s leading tions, and it is not until later in life, to our nation’s many air quality defi- professional society of ecologists, when they are blocked from coverage, ciencies. And finally, we have dem- issued a report in late 1997 which notes that they realize their need for Social onstrated that legislation containing that airborne deposition of nitrogen ac- Security and Medicare. This decision regulatory flexibility and market in- counts for a significant percentage of to ‘‘opt in’’ would be irrevocable and centives is preferable to the traditional the nitrogen content of coastal water all post-election earnings would be sub- ‘‘command and control’’ approach. My bodies stretching from the Gulf Coast ject to the payroll tax and credited for bills seek to build upon this new body up and around the entire length of the the purposes of Social Security and of knowledge by combining the best eastern seaboard. The Chesapeake Bay Medicare. and most current scientific evaluation is believed to receive 27 percent of its S600 CONGRESSIONAL RECORD — SENATE January 19, 1999 nitrogen load directly from the atmos- not appreciate that sulfur is a catalyst United States: 49 percent of nitrogen oxides phere. For Tampa Bay, the figure is 28 poison, too. All vehicles in the national emissions, 26 percent of emissions of particu- percent. For the coastal waters of the fleet with catalytic converters—vir- late matter with an aerodynamic diameter Newport River in North Carolina, more smaller than or equal to 10 micrometers tually all vehicles—produce higher lev- (PM–10), and 78 percent of carbon monoxide than 35 percent. els of NOX because of the high levels of emissions; Clearly, any serious effort to address sulfur in the gasoline they burn. (2)(A) failure to control gasoline sulfur these problems must address NOX emis- The cost of gasoline would rise under concentration adversely affects catalytic sions and further reduce SO2 emissions. this bill—by a nickel a gallon at the re- converter function for all vehicles in the na- My bills address the major sources of tail level, at most. For a car driven tional vehicle fleet; and (B) research performed collaboratively by NOX and SO2. The Acide Deposition and 15,000 miles per year that achieves 15 Ozone Control Act of 1998 would affect miles per gallon, the cost of the Clean the auto and oil industries demonstrates ‘‘stationary sources’’ of NO and SO , that when sulfur concentration in motor ve- X 2 Gasoline Act would be $50 annually. hicle gasoline is reduced from 450 parts per mainly electric utilities, and the Clean Keep in mind, however, that gasoline million (referred to in this section as ‘‘ppm’’) Gasoline Act of 1999 would affect ‘‘mo- prices, adjusted for inflation, are to 50 ppm— bile sources’’, mainly cars and trucks, cheaper now than they have been at (i) hydrocarbon emissions are reduced by 18 of NOx and other tailpipe emissions. any time since 1950, the beginning percent; ACID DEPOSITION AND OZONE CONTROL ACT: point of our analysis. And the benefits (ii) carbon monoxide emissions are reduced CONTROLLING STATIONARY SOURCES to human health and the environment by 19 percent; and When we designed the SO Allowance (iii) nitrogen oxide emissions are reduced 2 of reducing gasoline sulfur far out- by 8 percent; Program in 1990, our task was sim- weigh this modest cost. (3)(A) recent studies conducted by the the plified by the fact that over 85 percent A recent study by the State and Ter- Association of International Automobile of SO2 emissions originated in fossil ritorial Air Pollution Program Admin- Manufacturers, and the Coordinating Re- fuel-fired electric utilities. Utility istrators and the Association of Local search Council confirm that sulfur in vehicle emissions account for just under 30 per- Air Pollution Control Officials fuel impairs to an even greater degree the emission controls of Low-Emission Vehicles cent of total NOX emissions, a smaller (STAPPA-ALAPCO) found that reduc- share, but large enough to merit atten- ing gasoline sulfur levels to 40 parts (referred to in this section as ‘‘LEVs’’) and tion. My bill establishes a year-round Ultra-Low-Emission Vehicles (referred to in per million, the California standard, this section as ‘‘ULEVs’’); cap-and-trade program for NOX emis- would bring an air quality benefit (B) because sulfur-induced impairment of sions from the utility sector and man- equivalent to removing nearly 54 mil- advanced technology emission control sys- dates a further 50 percent cut in emis- lion vehicles from our national fleet. tems is not fully reversible under normal in- sions of SO2 through the existing cap New York City alone would have a ben- use driving conditions, a nationwide, year- and trade program. Because of the efit equal to removing 3 million vehi- round sulfur standard is necessary to prevent human health risks of urban ozone pol- cles from its streets. We must not pass impairment of vehicles’ emission control lution during the summer months, the systems as the vehicles travel across State up the opportunity to make such large lines; Acid Deposition and Ozone Control Act gains in emissions reductions for such (C) industry research on LEVs and ULEVs requires utilities to surrender two al- a minor cost. demonstrates that when gasoline sulfur con- lowances for each ton of NOX emitted As I mentioned earlier, I am proud of centration is lowered from 330 ppm to 40 between May and September. During what we accomplished in enacting the ppm— the remainder of the year, only one al- Clean Air Act Amendments of 1990. The (i) hydrocarbon emissions are reduced by 34 lowance is required to produce one ton SO2 Allowance Program established by percent; of NO emissions. In this way, utilities that legislation has achieved extraor- (ii) carbon monoxide emissions are reduced X by 43 percent; and are encouraged to make the greatest dinary benefits at program compliance (iii) nitrogen oxide emissions are reduced reductions during the summer, when costs less than half of initial projec- by 51 percent; the collective risk to human health tions. The efficacy of the approach is (D) failure to control sulfur in gasoline will from these emissions is higher. proven. The current science indicates, inhibit the introduction of more fuel-effi- In light of the impressive success and however, that we did not go far enough cient technologies, such as direct injection cost effectiveness of the cap and trade in 1990 in setting our emissions reduc- engines and ‘‘NOx trap’’ after-treatment technology, which require fuel with a very program which regulates SO2, the Acid tion targets. The bills I have intro- Deposition and Ozone Control Act is low concentration of sulfur; duced endeavor to build upon our ac- (E) the technology for removing sulfur designed to build onto it as seamlessly complishments thus far, and to begin from fuel during the refining process is read- as possible by establishing a ‘‘Phase the work which remains to be done. I ily available and currently in use; and III’’ under the existing program. Under encourage my colleagues to join myself (F) the reduction of sulfur concentrations the proposed Phase III, total utility and Mr. Schumer in sponsoring the in fuel to the level required by this Act is a emissions of SO2 would be reduced to Acid Deposition and Ozone Control Act cost-effective means of improving air qual- just under 4.5 million tons per year, of 1999, and to join myself and Mr. ity; (4)(A) gasoline sulfur levels in the United significantly reducing acid deposition LEVIN, Mr. LEAHY, Mr. SCHUMER, Mrs. States— and improving visibility in our Na- BOXER, Mr. CLELAND, and Mr. JEFFORDS (i) average between 300 and 350 ppm and tion’s scenic vistas. in sponsoring the Clean Gasoline Act of range as high as 1000 ppm; and THE CLEAN GASOLINE ACT OF 1999: ADDRESSING 1999. (ii) are far higher than the levels allowed MOBILE SOURCES Mr. President, I ask unanimous con- in many other industrialized nations, and This bill establishes a national, year- sent that the text of the bills be print- higher than the levels allowed by some de- round cap on the sulfur content of gas- ed in the RECORD. veloping nations; oline sold in the United States. The bill There being no objection, the bills (B) the European Union recently approved would extend the so-called California were ordered to be printed in the a standard of 150 ppm to take effect in 2000, to be phased down to 30 through 50 ppm by gasoline sulfur standard nationwide. RECORD, as follows: 2005; The benefits of reducing gasoline sulfur S. 171 (C) Japan has a standard of 50 ppm; and would be dramatic and virtually imme- Be it enacted by the Senate and House of Rep- (D) gasoline and diesel fuel in Australia, diate. resentatives of the United States of America in New Zealand, Taiwan, Hong Kong, Thailand, The presence of sulfur in gasoline in- Congress assembled, and Finland have significantly lower sulfur creases vehicle emissions because sul- SECTION 1. SHORT TITLE. concentrations than comparable gasoline fur poisons the catalytic converter This Act may be cited as the ‘‘Clean Gaso- and diesel fuel in the United States; used in the vehicle’s emissions control line Act of 1999’’. (5)(A) California is the only State that reg- system. Sulfur is a pollutant only: its SEC. 2. FINDINGS. ulates sulfur concentration in all gasoline presence (or absence) does not effect Congress finds that— sold; and (1) according to the National Air Quality (B) in June 1996, California imposed a 2- engine performance. In the 1970’s, we and Emissions Trends Report of the Environ- part limitation on sulfur concentration in fought to remove lead from gasoline to mental Protection Agency, dated 1996, motor gasoline: a 40 ppm per gallon maximum, or a make possible the introduction of cata- vehicles account for a major portion of the 30 ppm per gallon annual average with an 80 lytic converters. Until recently, we did emissions that degrade the air quality of the ppm per gallon maximum; January 19, 1999 CONGRESSIONAL RECORD — SENATE S601

(6)(A) a 1998 regulatory impact analysis by cles but that require motor vehicle gasoline (6) STATE.—The term ‘‘State’’ means the 48 the California Air Resources Board reports with a lower concentration of sulfur than contiguous States and the District of Colum- that air quality improved significantly in that specified in paragraph (1).’’. bia. the year following the introduction of low (b) PENALTIES AND INJUNCTIONS.—Section SEC. 4. NITROGEN OXIDE ALLOWANCE PROGRAM. sulfur gasoline; and 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) (a) IN GENERAL.— (B) the California Air Resources Board is amended— (1) ESTABLISHMENT.—Not later than 18 credits low sulfur gasoline with reducing (1) in paragraph (1), by striking ‘‘or (n)’’ months after the date of enactment of this ozone levels by 10 percent on the South each place it appears and inserting ‘‘(n), or Act, the Administrator shall establish a pro- Coast, 12 percent in Sacramento, and 2 per- (o)’’; and gram to be known as the ‘‘Nitrogen Oxide Al- cent in the Bay Area; and (2) in paragraph (2), by striking ‘‘and (n)’’ lowance Program’’. (7)(A) reducing sulfur concentration in gas- each place it appears and inserting ‘‘(n), and (2) SCOPE.—The Program shall be con- oline to the level required by this Act is a (o)’’. ducted in the 48 contiguous States and the cost-effective pollution prevention measure District of Columbia. that will provide significant and immediate S. 172 (3) NO ALLOWANCES.— benefits; and x Be it enacted by the Senate and House of Rep- (A) ALLOCATION.—The Administrator shall (B) unlike vehicle hardware requirements resentatives of the United States of America in allocate under paragraph (4)— that affect only new model years, sulfur con- Congress assembled, (i) for each of calendar years 2002 through trol produces the benefits of reduced emis- SECTION. 1. SHORT TITLE. 2004, 5,400,000 NO allowances; and sions of air pollutants across the vehicle x This Act may be cited as the ‘‘Acid Deposi- (ii) for calendar year 2005 and each cal- fleet immediately upon implementation. tion and Ozone Control Act’’. endar year thereafter, 3,000,000 NOx allow- SEC. 3. SULFUR CONCENTRATION REQUIRE- SEC. 2. FINDINGS AND PURPOSES. ances. MENTS FOR GASOLINE. (a) FINDINGS.—Congress finds that— (B) USE.—Each NO allowance shall au- (a) IN GENERAL.—Section 211 of the Clean x (1) reductions of atmospheric nitrogen Air Act (42 U.S.C. 7545) is amended— thorize an affected facility to emit— (1) by redesignating subsection (o) as sub- oxide and sulfur dioxide from utility plants, (i) 1 ton of nitrogen oxide during each of section (p); and in addition to the reductions required under the months of October, November, December, (2) by inserting after subsection (n) the fol- the Clean Air Act (42 U.S.C. 7401 et seq.), are January, February, March, and April of any lowing: needed to reduce acid deposition and its seri- year; or 1 ‘‘(o) SULFUR CONCENTRATION REQUIREMENTS ous adverse effects on public health, natural (ii) ⁄2 ton of nitrogen oxide during each of FOR GASOLINE.— resources, building structures, sensitive eco- the months of May, June, July, August, and ‘‘(1) IN GENERAL.— systems, and visibility; September of any year. ‘‘(A) REQUIREMENT.—Subject to subpara- (2) nitrogen oxide and sulfur dioxide con- (4) ALLOCATION.— graph (B), effective beginning 4 years after tribute to the development of fine particu- (A) DEFINITION OF TOTAL ELECTRIC POWER.— the date of enactment of this paragraph, a lates, suspected of causing human mortality In this paragraph, the term ‘‘total electric person shall not manufacture, sell, supply, and morbidity to a significant extent; power’’ means all electric power generated offer for sale or supply, dispense, transport, (3) regional nitrogen oxide reductions of 50 by utility and nonutility generators for dis- or introduce into commerce motor vehicle percent in the Eastern United States, in ad- tribution, including electricity generated gasoline that contains a concentration of dition to the reductions required under the from solar, wind, hydro power, nuclear sulfur that is greater than 40 parts per mil- Clean Air Act, may be necessary to protect power, cogeneration facilities, and the com- lion per gallon of gasoline. sensitive watersheds from the effects of ni- bustion of fossil fuel. ‘‘(B) ALTERNATIVE METHOD OF MEASURING trogen deposition; (B) ALLOCATION OF ALLOWANCES.—The Ad- COMPLIANCE.—A person shall not be consid- (4) without reductions in nitrogen oxide ministrator shall allocate annual NOx allow- ered to be in violation of paragraph (1) if the and sulfur dioxide, the number of acidic ances to each of the States in proportion to person manufactures, sells, supplies, offers lakes in the Adirondacks in the State of New the State’s share of the total electric power for sale or supply, dispenses, transports, or York is expected to increase by up to 40 per- generated in all of the States. introduces into commerce, during any 1-year cent by 2040; and (C) PUBLICATION.—The Administrator shall period, motor vehicle gasoline that contains (5) nitrogen oxide is highly mobile and can publish in the Federal Register a list of each a concentration of sulfur that is greater than lead to ozone formation hundreds of miles State’s NOx allowance allocation— 40 but less than or equal to 80 parts per mil- from the emitting source. (i) by December 1, 2000, for calendar years lion per gallon of gasoline, if the average (b) PURPOSES.—The purposes of this Act 2002 through 2004; concentration of sulfur in the motor vehicle are— (ii) by December 1, 2002, for calendar years gasoline manufactured, sold, supplied, of- (1) to recognize the current scientific un- 2005 through 2007; and fered for sale or supply, dispensed, trans- derstanding that emissions of nitrogen oxide (iii) by December 1 of each calendar year ported, or introduced into commerce by the and sulfur dioxide, and the acid deposition after 2002, for the calendar year that begins person during the period is less than 30 parts resulting from emissions of nitrogen oxide 61 months thereafter. per million per gallon of gasoline. and sulfur dioxide, present a substantial (5) INTRASTATE DISTRIBUTION.— ‘‘(C) REGULATIONS.—The Administrator human health and environmental risk; (A) IN GENERAL.—A State may submit to shall promulgate such regulations as are (2) to require reductions in nitrogen oxide the Administrator a report detailing the dis- necessary to carry out this paragraph. and sulfur dioxide emissions; tribution of NOx allowances of the State to ‘‘(2) LOWER SULFUR CONCENTRATION.— (3) to support the efforts of the Ozone affected facilities in the State— ‘‘(A) REPORT.— Transport Assessment Group to reduce ozone (i) not later than September 30, 2001, for ‘‘(i) INITIAL REPORT.—Not later than 6 pollution; calendar years 2002 through 2004; years after the date of enactment of this sub- (4) to reduce utility emissions of nitrogen (ii) not later than September 30, 2003, for section, the Administrator shall submit to oxide by 70 percent from 1990 levels; and calendar years 2005 through 2012; and Congress a report that documents the effects (5) to reduce utility emissions of sulfur di- (iii) not later than September 30 of each of use of low sulfur motor vehicle gasoline on oxide by 50 percent after the implementation calendar year after 2013, for the calendar urban and regional air quality. of phase II sulfur dioxide requirements under year that begins 61 months thereafter. ‘‘(ii) FOLLOWUP REPORT.—Not later than 2 section 405 of the Clean Air Act (42 U.S.C. (B) ACTION BY THE ADMINISTRATOR.—If a years after the date of the initial report 7651d). State submits a report under subparagraph under clause (i), the Administrator shall sub- SEC. 3. DEFINITIONS. (A) not later than September 30 of the cal- mit a report updating the information con- In this Act: endar year specified in subparagraph (A), the tained in the initial report. (1) ADMINISTRATOR.—The term ‘‘Adminis- Administrator shall distribute the NOx al- ‘‘(B) REGULATION.—After the date of the trator’’ means the Administrator of the En- lowances to affected facilities in the State as initial report under subparagraph (A)(i), the vironmental Protection Agency. detailed in the report. Administrator may promulgate a regulation (2) AFFECTED FACILITY.—The term ‘‘af- (C) LATE SUBMISSION OF REPORT.—A report to establish maximum and average allowable fected facility’’ means a facility with 1 or submitted by a State after September 30 of a sulfur concentrations in motor vehicle gaso- more combustion units that serve at least 1 specified year shall be of no effect. line that are lower than the concentrations electricity generator with a capacity equal (D) DISTRIBUTION IN ABSENCE OF A RE- specified in paragraph (1) if the Adminis- to or greater than 25 megawatts. PORT.— trator determines that— (3) NOx ALLOWANCE.—The term ‘‘NOx allow- (i) IN GENERAL.—Subject to subsection (e), ‘‘(i) research conducted after the date of ance’’ means a limited authorization under if a State does not submit a report under enactment of this subsection indicates that section 4(3) to emit, in accordance with this subparagraph (A) not later than September significant air quality benefits would result Act, quantities of nitrogen oxide. 30 of the calendar year specified in subpara- from a reduction in allowable sulfur con- (4) MMBTU.—The term ‘‘mmBtu’’ means graph (A), the Administrator shall, not later centration in motor vehicle gasoline; or 1,000,000 British thermal units. than November 30 of that calendar year, dis- ‘‘(ii) advanced vehicle technologies have (5) PROGRAM.—The term ‘‘Program’’ means tribute the NOx allowances for the calendar been developed that can significantly reduce the Nitrogen Oxide Allowance Program es- years specified in subparagraph (A) to each emissions of air pollutants from motor vehi- tablished under section 4. affected facility in the State in proportion to S602 CONGRESSIONAL RECORD — SENATE January 19, 1999 the affected facility’s share of the total elec- is 5 years previous to the year for which the (B) the requirements and liabilities of an tric power generated in the State. distribution is made. affected facility under that Act. (ii) DETERMINATION OF FACILITY’S SHARE.— (2) SHARE.—For a State for which the Ad- (h) SAVINGS PROVISIONS.—Nothing in this In determining an affected facility’s share of ministrator distributes NOx allowances section— total electric power generated in a State, the under subsection (a)(5)(D), the Administrator (1) affects the application of, or compliance Administrator shall consider the net electric shall distribute to each new source a number with, the Clean Air Act (42 U.S.C. 7401 et power generated by the facility and the of NOx allowances sufficient to allow emis- seq.) for an affected facility, including the State to be— sions by the source at a rate equal to the provisions related to applicable national am- (I) for calendar years 2002 through 2004, the lesser of the new source performance stand- bient air quality standards and State imple- average annual amount of electric power ard or the permitted level for the full name- mentation plans; generated, by the facility and the State, re- plate capacity of the source, adjusted pro (2) requires a change in, affects, or limits spectively, in calendar years 1997 through rata for the number of months of the year any State law regulating electric utility 1999; during which the source operates. rates or charges, including prudency review (II) for calendar years 2005 through 2012, (3) UNUSED NOx ALLOWANCES.— under State law; the average annual amount of electric power (A) IN GENERAL.—During the period of cal- (3) affects the application of the Federal generated, by the facility and the State, re- endar years 2000 through 2005, the Adminis- Power Act (16 U.S.C. 791a et seq.) or the au- spectively, in calendar years 1999 through trator shall conduct auctions at which a NOx thority of the Federal Energy Regulatory 2001; and allowance remaining in the new source re- Commission under that Act; or (III) for calendar year 2013 and each cal- serve that has not been distributed under (4) interferes with or impairs any program endar year thereafter, the amount of electric paragraph (2) shall be offered for sale. for competitive bidding for power supply in a power generated, by the facility and the (B) OPEN AUCTIONS.—An auction under sub- State in which the Program is established. State, respectively, in the calendar year 5 paragraph (A) shall be open to any person. SEC. 5. INDUSTRIAL SOURCE MONITORING. years previous to the year for which the de- (C) CONDUCT OF AUCTION.— Section 412(a) of the Clean Air Act (42 termination is made. (i) METHOD OF BIDDING.—A person wishing U.S.C. 7651k(a)) is amended in the first sen- (E) JUDICIAL REVIEW.—A distribution of to bid for a NOx allowance at an auction tence by inserting ‘‘, or of any industrial fa- under subparagraph (A) shall submit (by a cility with a capacity of 100 or more NOx allowances by the Administrator under subparagraph (D) shall not be subject to judi- date set by the Administrator) to the Admin- mmBtu’s per hour,’’ after ‘‘The owner and cial review. istrator (on a sealed bid schedule provided by operator of any source subject to this title’’. the Administrator) an offer to purchase a SEC. 6. EXCESS EMISSIONS PENALTY. (b) NOx ALLOWANCE TRANSFER SYSTEM.— specified number of NO allowances at a N ENERAL (1) IN GENERAL.—Not later than 18 months x (a) I G .— specified price. after the date of enactment of this Act, the (1) LIABILITY.—The owner or operator of an (ii) SALE BASED ON BID PRICE.—A NO allow- Administrator shall promulgate a NO allow- x affected facility that emits nitrogen oxides x ance auctioned under subparagraph (A) shall ance system regulation under which a NO in any calendar year in excess of the NOx al- x be sold on the basis of bid price, starting allowance allocated under this Act may be lowances the owner or operator holds for use with the highest priced bid and continuing transferred among affected facilities and any for the facility for that year shall be liable until all NO allowances for sale at the auc- other person. x for the payment of an excess emissions pen- tion have been sold. (2) ESTABLISHMENT.—The regulation shall alty. (iii) NO MINIMUM PRICE.—A minimum price establish the NO allowance system under (2) CALCULATION.—The excess emissions x shall not be set for the purchase of a NO al- this section, including requirements for the x penalty shall be calculated by multiplying lowance auctioned under subparagraph (A). allocation, transfer, and use of NO allow- $6,000 by the quantity that is equal to— x (iv) REGULATIONS.—The Administrator, in (A) the quantity of NOx allowances that ances under this Act. consultation with the Secretary of the (3) USE OF NO ALLOWANCES.—The regula- would authorize the nitrogen oxides emitted x Treasury, shall promulgate a regulation to by the facility for the calendar year; minus tion shall— carry out this paragraph. (A) prohibit the use (but not the transfer in (B) the quantity of NOx allowances that (D) USE OF NO ALLOWANCES.—A NO allow- accordance with paragraph (5)) of any NO al- x x the owner or operator holds for use for the x ance purchased at an auction under subpara- facility for that year. lowance before the calendar year for which graph (A) may be used for any purpose and at the NO allowance is allocated; and (3) OVERLAPPING PENALTIES.—A penalty x any time after the auction that is permitted under this section shall not diminish the li- (B) provide that the unused NOx allowances for use of a NO allowance under this Act. shall be carried forward and added to NO al- x ability of the owner or operator of an af- x (E) PROCEEDS OF AUCTION.—The proceeds fected facility for any fine, penalty, or as- lowances allocated for subsequent years. from an auction under this paragraph shall (4) CERTIFICATION OF TRANSFER.—A transfer sessment against the owner or operator for be distributed to the owner of an affected the same violation under any other provision of a NOx allowance shall not be effective source in proportion to the number of allow- until a written certification of the transfer, of law. ances that the owner would have received (b) EXCESS EMISSIONS OFFSET.— signed by a responsible official of the person but for this subsection. (1) IN GENERAL.—The owner or operator of making the transfer, is received and recorded (f) NATURE OF NOx ALLOWANCES.— an affected facility that emits nitrogen oxide by the Administrator. (1) NOT A PROPERTY RIGHT.—A NOx allow- during a calendar year in excess of the NO (c) NO ALLOWANCE TRACKING SYSTEM.— x x ance shall not be considered to be a property allowances held for the facility for the cal- Not later than 18 months after the date of right. endar year shall offset in the following cal- enactment of this Act, the Administrator (2) LIMITATION OF NOx ALLOWANCES.—Not- endar year a quantity of NO allowances shall promulgate regulations for issuing, re- x withstanding any other provision of law, the equal to the number of NO allowances that cording, and tracking the use and transfer of x Administrator may terminate or limit a NOx would authorize the excess nitrogen oxides NO allowances that shall specify all nec- x allowance. emitted. essary procedures and requirements for an (g) PROHIBITIONS.— (2) PROPOSED PLAN.—Not later than 60 days orderly and competitive functioning of the (1) IN GENERAL.—After January 1, 2000, it after the end of the year in which excess NO allowance system. x shall be unlawful— emissions occur, the owner or operator of an (d) PERMIT REQUIREMENTS.—A NOx allow- (A) for the owner or operator of an affected affected facility shall submit to the Admin- ance allocation or transfer shall, on recorda- facility to operate the affected facility in istrator and the State in which the affected tion by the Administrator, be considered to such a manner that the affected facility facility is located a proposed plan to achieve be a part of each affected facility’s operating emits nitrogen oxides in excess of the the offset required under paragraph (1). permit requirements, without a requirement amount permitted by the quantity of NOx al- (3) CONDITION OF PERMIT.—On approval of for any further permit review or revision. lowances held by the designated representa- the proposed plan by the Administrator, as (e) NEW SOURCE RESERVE.— tive of the affected facility; or submitted, or as modified or conditioned by (1) IN GENERAL.—For a State for which the (B) for any person to hold, use, or transfer the Administrator, the plan shall be consid- Administrator distributes NOx allowances a NOx allowance allocated under this Act, ex- ered a condition of the operating permit for under subsection (a)(5)(D), the Administrator cept as provided under this Act. the affected facility without further review shall place 10 percent of the total annual NOx (2) OTHER EMISSION LIMITATIONS.—Section or revision of the permit. allowances of the State in a new source re- 407 of the Clean Air Act (42 U.S.C. 7651f) is re- (c) PENALTY ADJUSTMENT.—The Adminis- serve to be distributed by the pealed. trator shall annually adjust the amount of Administrator— (3) TIME OF USE.—A NOx allowance may not the penalty specified in subsection (a) to re- (A) for calendar years 2002 through 2005, to be used before the calendar year for which flect changes in the Consumer Price Index sources that commence operation after 1998; the NOx allowance is allocated. for all urban consumers published by the Bu- (B) for calendar years 2006 through 2011, to (4) PERMITTING, MONITORING, AND ENFORCE- reau of Labor Statistics. sources that commence operation after 2000; MENT.—Nothing in this section affects— SEC. 7. SULFUR DIOXIDE ALLOWANCE PROGRAM and (A) the permitting, monitoring, and en- REVISIONS. (C) for calendar year 2012 and each cal- forcement obligations of the Administrator Section 402 of the Clean Air Act (42 U.S.C. endar year thereafter, to sources that com- under the Clean Air Act (42 U.S.C. 7401 et 7651a) is amended by striking paragraph (3) mence operation after the calendar year that seq.); or and inserting the following: January 19, 1999 CONGRESSIONAL RECORD — SENATE S603 ‘‘(3) ALLOWANCE.—The term ‘allowance’ submission of the report under subsection subject to mandatory detention and means an authorization, allocated to an af- (a), the Administrator shall promulgate a have no chance for an immigration fected unit by the Administrator under this regulation requiring the reporting of mer- judge to evaluate their individual cir- title, to emit, during or after a specified cal- cury emissions from units that have a capac- cumstances. This is unfair. endar year— ity equal to or greater than 250 mmBtu’s per My second change amends Section ‘‘(A) in the case of allowances allocated for hour. calendar years 1997 through 2004, 1 ton of sul- (c) EMISSION CONTROLS.— 240A.(1)(a) of the same act. At present, fur dioxide; and (1) IN GENERAL.—Not later than 1 year after the Attorney General has the authority ‘‘(B) in the case of allowances allocated for the commencement of monitoring activities to stop the deportation of a lawful resi- calendar year 2005 and each calendar year under subsection (b), the Administrator shall dent who has been in this country for thereafter, 1⁄2 ton of sulfur dioxide.’’. promulgate a regulation controlling electric seven years. The 1996 changes to the SEC. 8. REGIONAL ECOSYSTEMS. utility and industrial source emissions of Immigration and Nationality Act now (a) REPORT.— mercury. bar this relief for anyone convicted of (1) IN GENERAL.—Not later than December (2) FACTORS.—The regulation shall take into account technological feasibility, cost, an aggravated felony. This provision 31, 2002, the Administrator shall submit to has led to many injustices because of Congress a report identifying objectives for and the projected reduction in levels of mer- scientifically credible environmental indica- cury emissions that will result from imple- the sheer number of offenses that are tors, as determined by the Administrator, mentation of this Act. now aggravated felonies. I propose that that are sufficient to protect sensitive eco- SEC. 11. DEPOSITION RESEARCH BY THE ENVI- we deny relief only to those who have systems of the Adirondack Mountains, mid- RONMENTAL PROTECTION AGENCY. been convicted of aggravated felonies Appalachian Mountains, Rocky Mountains, (a) IN GENERAL.—The Administrator shall that carry a penalty of five years or and Southern Blue Ridge Mountains and establish a competitive grant program to more in prison. water bodies of the Great Lakes, Lake Cham- fund research related to the effects of nitro- In conjunction with this, I propose plain, Long Island Sound, and the Chesa- gen deposition on sensitive watersheds and that we amend Section 240A(d)(1). This coastal estuaries in the Eastern United peake Bay. provision says that the time for deter- (2) ACID NEUTRALIZING CAPACITY.—The re- States. port under paragraph (1) shall— (b) CHEMISTRY OF LAKES AND STREAMS.— mining the above seven years residency (A) include acid neutralizing capacity as (1) INITIAL REPORT.—Not later than Sep- period stops when an aggravated crime an indicator; and tember 30, 2001, the Administrator shall sub- is or was committed. This has barred (B) identify as an objective under para- mit to the Committee on Environment and relief for people with ancient convic- graph (1) the objective of increasing the pro- Public Works of the Senate and the Commit- tions but many good years of citizen- portion of water bodies in sensitive receptor tee on Resources of the House of Representa- ship since then. This should be changed areas with an acid neutralizing capacity tives a report on the health and chemistry of so that the countable residence period lakes and streams of the Adirondacks that greater than zero from the proportion identi- stops only when formal immigration fied in surveys begun in 1984. were subjects of the report transmitted (3) UPDATED REPORT.—Not later than De- under section 404 of Public Law 101–549 (com- charges are filed because of the crime cember 31, 2008, the Administrator shall sub- monly known as the ‘‘Clean Air Act Amend- and not when the crime is or was com- mit to Congress a report updating the report ments of 1990’’) (104 Stat. 2632). mitted. under paragraph (1) and assessing the status (2) FOLLOWING REPORT.—Not later than 2 Another of my amendments made the and trends of various environmental indica- years after the date of the report under para- transitional rules permanent governing tors for the regional ecosystems referred to graph (1), the Administrator shall submit a Section 236(c) of the Immigration and in paragraph (1). report updating the information contained in Nationality Act. This section now re- the initial report. (4) REPORTS UNDER THE NATIONAL ACID PRE- quires that all criminal aliens be de- (c) AUTHORIZATION OF APPROPRIATIONS.— CIPITATION ASSESSMENT PROGRAM.—The re- tained from the time of their release on ports under this subsection shall be subject There are authorized to be appropriated— to the requirements applicable to a report (1) to carry out subsection (a), $1,000,000 for criminal charges until their deporta- under section 103(j)(3)(E) of the Clean Air Act each of fiscal years 2000 through 2005; and tion hearing. This requirement was so (42 U.S.C. 7403(j)(3)(E)). (2) to carry out subsection (b), $1,000,000 for harsh and expensive that Congress pro- (b) REGULATIONS.— each of fiscal years 2000, 2001, 2007, and 2008. vided a two-year transition period, end- (1) DETERMINATION.—Not later than Decem- ing on October 1998, that allowed immi- ber 31, 2008, the Administrator shall deter- gration judges to use their discretion mine whether emissions reductions under By Mr. MOYNIHAN: in evaluating whether or not an indi- section 4 are sufficient to ensure achieve- S. 173. A bill to amend the Immigra- ment of the objectives stated in subsection vidual was a risk of flight or a danger tion and Nationality Act to revise to the community. This discretion (a)(1). amendments made by the Illegal Immi- (2) PROMULGATION.—If the Administrator should be continued because it is fair determines under paragraph (1) that emis- gration Reform and Immigrant Respon- and because it will empty our jails of sions reductions under section 4 are not suf- sibility Act; to the Committee on the those who will return for their hear- ficient to ensure achievement of the objec- Judiciary. ings and who pose no threat to our tives identified in subsection (a)(1), the Ad- AMENDMENTS TO THE IMMIGRATION AND communities. ministrator shall promulgate, not later than NATIONALITY ACT I also propose that we restore judi- 2 years after making the finding, such regu- Mr. MOYNIHAN. Mr. President, cial review in deportation cases. The lations, including modification of nitrogen today I rise to introduce a bill that will oxide and sulfur dioxide allowance alloca- 1996 reforms ostensibly banned crimi- tions or any such measure, as the Adminis- amend several parts of our existing im- nal aliens from seeking a judicial re- trator determines are necessary to protect migration laws, specifically those that view of their cases. The courts have the sensitive ecosystems described in sub- fall under the umbrella of the Immi- reached many different outcomes over section (a)(1). gration and Nationality Act. These this ban and the situation, frankly, is a SEC. 9. GENERAL COMPLIANCE WITH OTHER changes are aimed at making our im- mess. I believe that criminal aliens PROVISIONS. migration laws not only fairer but should have the right to have their Except as expressly provided in this Act, more efficient. convictions reviewed by a United compliance with this Act shall not exempt or The first change will amend Section States circuit court of appeals. exclude the owner or operator of an affected facility from compliance with any other law. 240(a) of the Immigration and National- Similiarly, I believe that aliens ity Act. In 1996, the laws applying to should have the right to legal counsel SEC. 10. MERCURY EMISSION STUDY AND CON- TROL. criminal aliens were made overly re- when they are faced with removal. The (a) STUDY AND REPORT.—The Adminis- strictive. For example, all persons law now provides that an alien is enti- trator shall— guilty of aggravated felonies—the num- tled to counsel if he can afford to re- (1) study the practicality of monitoring ber of crimes that fall into this cat- tain one. In reality, this has created mercury emissions from all combustion egory was greatly expanded and made great expense and delay for the Federal units that have a capacity equal to or great- retroactive in 1996—are now ineligible government because cases are often er than 250 mmBtu’s per hour; and for virtually any form of leniency. This continued for lengthy periods while (2) not later than 2 years after the date of enactment of this Act, submit to Congress a means that many people, who have led aliens try to find pro bono counsel or report on the results of the study. exemplary lives for many years, now counsel they can afford. My bill creates (b) REGULATIONS CONCERNING MONITOR- find themselves deportable for offenses a pilot program in selected Immigra- ING.—Not later than 1 year after the date of committed decades ago. They are also tion and Nationalization districts S604 CONGRESSIONAL RECORD — SENATE January 19, 1999 where free, expert counsel would be (2) REPEAL.—Section 303(b) of the Illegal problem. CRS issued the report to me provided to aliens. A study of the im- Immigration Reform and Immigrant Respon- with the following comments: ‘‘The pact on overall Department of Justice sibility Act of 1996 is repealed. Year 2000 problem is indeed serious, costs would be required to decide if this (c) JUDICIAL REVIEW.—Section 242(a)(2)(C) and fixing it will be costly and time- of the Immigration and Nationality Act (8 program should be extended nation- U.S.C. 1252(a)(2)(C)) is amended by striking consuming. The problem deserves the wide. ‘‘no court shall have jurisdiction to review careful and coordinated attention of My last amendments are concerned any’’ and inserting ‘‘a court of appeals for the Federal government, as well as the with who should be admitted to this the judicial circuit in which a final order of private sector, in order to avert major country. The most objectionable ele- removal was issued shall have jurisdiction to disruptions on January 1, 2000.’’ I wrote ment of our current admission system review the’’. the President on July 31, 1996 to relay is the delay—estimated to be five (d) RIGHT TO COUNSEL.—Section 292 of the the findings of CRS and make him Immigration and Nationality Act (8 U.S.C. years—for a vitally important family 1362) is amended— aware of this grave problem. In the let- reunion category, part A of the second (1) by striking ‘‘In’’ and inserting ‘‘Except ter, I warned the president of the ‘‘ex- family-based preference (FS–2A). This as provided in paragraph (2), in’’; and treme negative economic consequences category, for admission of spouses and (2) by adding at the end the following: of the Y2K Time Bomb,’’ and suggested minor children of lawful, permanent ‘‘(2) In any removal proceedings before an that ‘‘a presidential aide be appointed residents, is now limited to 114,000 per immigration judge and in any appeal pro- to take responsibility for assuring that year. Nuclear families should live to- ceedings before the Attorney General from all Federal agencies, including the gether. To obtain more spaces for the any such removal proceedings (in three des- military, be Y2K compliant by January ignated districts), the person concerned shall FS–2A preference, the diversity lottery have the privilege of being represented by 1, 1999 [leaving a year for ‘testing’] and visas should be eliminated, freeing court-appointed counsel who shall be paid by that all commercial and industrial 55,000 spaces annually. the United States and who are authorized to firms doing business with the Federal Lastly, I believe that the EB–5 pref- practice in such proceedings, as he shall government must also be compliant by erence for investors should be repealed. choose.’’. that date.’’ The rich should not be able to buy (e) REPEALS.—The following provisions of Since that time, the government has their way into this country. This cat- the Immigration and Nationality Act are re- pealed: taken some of the necessary steps to egory was added in 1990 to encourage (1) Section 203(b)(5) (8 U.S.C. 1153(b)(5)). combat the millennium bug. The Presi- investment. Instead, this provision has (2) Section 203(c) (8 U.S.C. 1153(c)). dent created the Year 2000 Conversion led to the creation of some highly ques- (3) Section 201(a)(3) and 201(e) (8 U.S.C. Council and appointed John Koskinen tionable investment schemes that have 1151(a)(3), 1151(e)). to head it. The Senate, under the lead- cost the Immigration and Naturaliza- (4) Section 204(a)(1)(F) and (G) (8 U.S.C. ership of Chairman BENNETT and Vice tion Service untold hours and re- 1154(a)(1)(F) and (G)). Chairman DODD, established the Spe- sources in attempting to reign them in. (5) Section 216A (8 U.S.C. 1186b). cial Committee on the Y2K problem. Moreover, the evidence of new jobs By Mr. MOYNIHAN (for himself, And Representative STEPHEN HORN (R– being created is very thin and not CA) continues to due an excellent job Mr. BENNETT, and Mr. DODD): worth the administrative costs. S. 174. A bill to provide funding for in keeping the government focused on Mr. President, I ask unanimous con- States to correct Y2K problems in com- the issue. Thanks in part to the work sent that the bill be printed in the puters that are used to administer of these individuals, we have made tre- RECORD. State and local government programs; mendous progress on the millennium There being no objection, the bill was to the Committee on Finance. bug. Y2K experts have become optimis- ordered to be printed in the RECORD, as tic enough to dismiss doomsday pre- Y2K STATE AND LOCAL GAP (GOVERNMENT follows: ASSISTANCE PROGRAMS) ACT OF 1999 dictions of widespread power outages, S. 173 Mr. MOYNIHAN. Mr. President, I rise telephone failures, and grounded jet- Be it enacted by the Senate and House of Rep- today to introduce the ‘‘Y2K State and liners in the U.S. Businesses and Fed- resentatives of the United States of America in Local Government Assistance Pro- eral agencies that were lagging in their Congress assembled, grams (GAP) Act of 1999.’’ I am pleased repair work last year have redoubled their efforts in recent months; tele- SECTION 1. AMENDMENTS TO THE IMMIGRATION to have Senators ROBERT F. BENNETT AND NATIONALITY ACT. phone and electric networks, which are (R–UT) and CHRISTOPHER J. DODD (D– (a) CANCELLATION OF REMOVAL.— CT), the Chairman and Vice Chairman, crucial to the operation of almost all (1) IN GENERAL.—Section 240A(a)(3) of the large computer systems, are in better- Immigration and Nationality Act (8 U.S.C. respectively, of the Special Committee on the Year 2000 Technology Problem, than-expected shape; and technicians 1229b(a)(3)) is amended to read as follows: have found remarkably few date-relat- ‘‘(3) has not been convicted of any aggra- as original cosponsors of this legisla- vated felony punishable by imprisonment for tion. This bill provides a matching ed problems with the electronic cir- a period of not less than five years.’’. grant for states to work on the millen- cuitry in a host of other ‘‘day-to-day’’ (2) TERMINATION OF CONTINUOUS PERIOD.— nium computer problem. While the devices, from subway cars to elevators. Section 240A(d)(1) of that Act (8 U.S.C. Federal government and large corpora- Mr. Koskinen predicts that the bug’s 1229b(d)(1)) is amended by striking ‘‘or when’’ tions are expected to have their com- impact will be similar to a powerful and all that follows through ‘‘earliest’’. winter storm—minor inconveniences (b) CUSTODY RULES.— puters intact on January 1, 2000, state for many people and severe, but short- (1) IN GENERAL.—Section 236(c)(2) of the governments lag behind in fixing the Immigration and Nationality Act (8 U.S.C. problem. Failure of state computers term, disruptions for some commu- 1226(c)(2)) is amended to read as follows: could have a devastating effect on nities. I agree with Mr. Koskinen and ‘‘(2) RELEASE.—The Attorney General may those individuals who rely on essential other Y2K experts. I do not expect the release an alien described in paragraph (1) state-administered poverty programs, four horsemen, armed with flood and only if the alien is an alien described in sub- such as Medicaid, food stamps, and catastrophe, to be riding in on January paragraph (A)(ii) or (iii) and— child welfare and support. These indi- 1, 2000. But experts agree that state ‘‘(A) the alien was lawfully admitted to the governments are not making sufficient United States and satisfies the Attorney viduals cannot go a day, a week, or a General that the alien will not pose a danger month without these programs work- progress in fixing the problem. It is for to the safety of other persons or of property ing properly. I am hopeful that the bill this reason that Senators BENNETT, and is likely to appear for any scheduled pro- Senators BENNETT, DODD, and I are in- DODD, and I are introducing this bill ceeding; or troducing today will help states fix today. ‘‘(B) the alien was not lawfully admitted to their computers, particularly those The ‘‘Y2K State and Local GAP Act the United States, cannot be removed be- computers used to administer Federal of 1999’’ provides funding for states to cause the designated country of removal will welfare programs. address the Y2K problem. The bill stip- not accept the alien, and satisfies the Attor- ney General that the alien will not pose a It has been almost three years since ulates that certain Federal poverty danger to the safety of other persons or of I asked the Congressional Research programs—Medicaid, Temporary As- property and is likely to appear for any Service (CRS) to study and produce a sistance for Needy Families (TANF), scheduled proceeding.’’. report on the implications of the Y2K Women, Infants, and Children (WIC), January 19, 1999 CONGRESSIONAL RECORD — SENATE S605 food stamps, child support enforce- (C) FOOD STAMPS.—The food stamp pro- matching requirement described in subpara- ment, child care, and child welfare pro- gram, as defined in section 3(h) of the Food graph (A) in the case of any State that the grams—be listed as priority programs. Stamp Act of 1977 (7 U.S.C. 2012(h)). Secretary of Commerce determines would The people dependent on these pro- (D) WIC.—The program of assistance under suffer undue hardship as a result of being the special supplemental nutrition program grams will be the most adversely af- subject to the requirement. for women, infants and children (WIC) under (C) NON-FEDERAL EXPENDITURES.— fected by the problem if state comput- section 17 of the Child Nutrition Act of 1966 (i) CASH OR IN KIND.—State expenditures re- ers crash. To be eligible for Federal (42 U.S.C. 1786). quired under subparagraph (A) may be in support money, states must submit a (E) CHILD SUPPORT ENFORCEMENT.—The cash or in kind, fairly evaluated, including plan describing their Y2K development child support and paternity establishment equipment, or services. and implementation program. A state program established under part D of title IV (ii) NO CREDIT FOR PRE-AWARD EXPENDI- that is awarded a grant under this leg- of the Social Security Act (42 U.S.C. 651 et TURES.—Only State expenditures made after islation is required to expend $1 for seq.). a grant has been awarded under this section every $2 provided by the Federal gov- (F) CHILD WELFARE.—A child welfare pro- may be counted for purposes of determining gram or a program designed to promote safe whether the State has satisfied the matching ernment. The matching requirement and stable families established under subpart will give states and local governments expenditure requirement under subparagraph 1 or 2 of part B of title IV of the Social Secu- (A). incentive to work on their computers. rity Act (42 U.S.C. 620 et seq.). (2) CONSIDERATIONS.—In evaluating an ap- And the numbers indicate that states (G) CHILD CARE.—The Child Care and Devel- plication for a grant under this section the need a great amount of incentive and opment Block Grant Act of 1990 (42 U.S.C. Secretary of Commerce shall consider the help on this issue. 9858 et seq.) (including funding provided extent to which the proposed system is fea- According to a National Association under section 418 of the Social Security Act sible and likely to achieve the purposes de- of State Information Resource Execu- (42 U.S.C. 618)). scribed in subsection (a)(1). tives survey, some states have not yet (2) Y2K.—The term ‘‘Y2K compliant’’ (d) LENGTH OF AWARDS.—No grant may be means, with respect to information tech- awarded under this section for a period of completed work on any of their critical nology, that the information technology ac- systems, and those systems responsible more than 2 years. curately processes (including calculating, (e) AVAILABILITY OF FUNDS.—Funds pro- for administering poverty programs are comparing, and sequencing) date and time vided to a State under a grant awarded under a real concern. A November 1998 Gen- data from, into, and between the 20th and this section shall remain available until ex- eral Accounting Office (GAO) report 21st centuries and the years 1999 and 2000, pended without fiscal year limitation. found that most of the systems used to and leap year calculations, to the extent (f) REPORTS.— administer poverty programs are not that other information technology properly (1) ANNUAL REPORT FROM GRANTEES.—Each ready for the new millennium—84 per- exchanges date and time data with it. State that is awarded a grant under this sec- cent of Medicaid systems, 76 percent of SEC. 3. GRANTS TO STATES TO MAKE STATE AND tion shall submit an annual report to the food stamps, and 75 percent of TANF LOCAL GOVERNMENT PROGRAMS Secretary of Commerce that contains a de- Y2K COMPLIANT. scription of the ongoing results of the inde- systems were not compliant. Since (a) AUTHORITY TO AWARD GRANTS.— pendent evaluation of the plan for, and im- these programs are administered at the (1) IN GENERAL.—Subject to paragraph (2), plementation of, the compliance program state and local level, it is these com- the Secretary of Commerce shall award funded under the grant. puters which ensure that benefit pay- grants in accordance with this section to (2) FINAL REPORT.—Not later than 90 days ments are on time and accurate. Given States for purposes of making grants to as- after the termination of all grants awarded the lack of means of those assisted by sist the States and local governments in under this section, the Secretary of Com- the programs, the possible disruption making programs administered by the States merce shall submit to Congress a final report of benefit payments should be a cause and local governments Y2K compliant. The evaluating the programs funded under such Secretary of Commerce shall give priority to for concern—a billion dollars in bene- grants. grant requests that relate to making Federal (g) AUTHORIZATION OF APPROPRIATIONS.— fits payments might not be delivered welfare programs Y2K compliant. There is authorized to be appropriated to because of the millennial malady. (2) LIMITATIONS.— carry out this section, $40,000,000 for fiscal Historically the fin de sie`cle has (A) NUMBER OF GRANTS.—No more than 75 years 1999 to 2001 funded from the Y2K Emer- caused quite a stir. Prophets, prelates, grants may be awarded under this section. gency Supplemental Funds appropriated in monks, mathematicians, and sooth- (B) PER STATE LIMITATION.—Not more than the FY99 Omnibus Act, Public Law 105–277. sayers warn Anno Domini 2000 will 2 grants authorized under this section may draw the world to its catastrophic con- be awarded per State. By Mr. MOYNIHAN: clusion. I am confident that the Y2K (C) APPLICATION DEADLINE.—45 days after S. 175. A bill to repeal the habeas cor- problem will not play a part in this. enactment. pus requirement that a Federal court (b) APPLICATION.— But we must continue to work on this defer to State court judgments and up- (1) IN GENERAL.—A State, through the problem with purpose and dedication. hold a conviction regardless of whether State Governor’s Office, may submit an ap- the Federal court believes that the Disraeli wrote: ‘‘Man is not the crea- plication for a grant authorized under this ture of circumstances. Circumstances section at such time within the constraints State court erroneously interpreted are the creatures of men.’’ We created of paragraph Sec. 3(a)(2)(C) and in such man- constitutional law, except in cases the Y2K problem and we must fix it. ner as the Secretary of Commerce may de- where the Federal court believes that Mr. President, I ask unanimous con- termine. the State court acted in an unreason- sent that the Y2K State and Local Gov- (2) INFORMATION REQUIRED.—An application able manner; to the Committee on the ernment Assistance Programs Act of for a grant authorized under this section Judiciary. shall contain the following: 1999 be printed in the RECORD. HABEAS CORPUS LEGISLATION There being no objection, the bill was (A) A description of a proposed plan for the Mr. MOYNIHAN. Mr. President, I in- development and implementation of a Y2K ordered to be printed in the RECORD, as compliance program for the State’s pro- troduce this bill to repeal an unprece- follows: grams or for a local government program, in- dented provision—unprecedented until S. 174 cluding a proposed budget for the plan and a the 104th Congress—to tamper with the Be it enacted by the Senate and House of Rep- request for a specific funding amount. constitutional protection of habeas resentatives of the United States of America in (B) A description or identification of a pro- corpus. Congress assembled, posed funding source for completion of the The provision reads: SECTION 1. SHORT TITLE. plan (if applicable) and maintenance of the (d) An application for writ of habeas corpus This Act may be cited as the ‘‘Y2K State system after the conclusion of the period for on behalf of a person in custody pursuant to and Local GAP (Government Assistance Pro- which the grant is to be awarded. the judgment of State court shall not be grams) Act of 1999’’. (c) CONDITIONS FOR APPROVAL OF APPLICA- granted with respect to any claim that was SEC. 2. DEFINITIONS. TIONS.— adjudicated on the merits in State court pro- In this Act: (1) MATCHING REQUIREMENT.— ceedings unless the adjudication of the (1) WELFARE PROGRAMS.—The welfare pro- (A) IN GENERAL.—A State awarded a grant claim— grams are as follows: under this section shall expend $1 for every (1) resulted in a decision that was contrary (A) TANF.—The State program funded $2 awarded under the grant to carry out the to, or involved an unreasonable application under part A of title IV of the Social Secu- development and implementation of a Y2K of, clearly established Federal law, as deter- rity Act (42 U.S.C. 601 et seq.). compliance program for the State’s pro- mined by the Supreme Court of the United (B) MEDICAID.—The program of medical as- grams under the proposed plan. States; or sistance under title XIX of the Social Secu- (B) WAIVER FOR HARDSHIP.—The Secretary (2) resulted in a decision that was based on rity Act (42 U.S.C. 1396 et seq.). of Commerce may waive or modify the an unreasonable determination of the facts S606 CONGRESSIONAL RECORD — SENATE January 19, 1999 in light of the evidence presented in the Anthony Lewis has written of the ha- Both of these provisions, by flatly barring State court proceeding. beas provision in that bill: ‘‘It is a new federal habeas corpus review under certain In 1996 we enacted a statute which and remarkable concept in law: that circumstances, violate the Constitution’s holds that constitutional protections mere wrongness in a constitutional de- Suspension Clause, which provides: ‘‘The privilege of the Writ of Habeas Corpus shall do not exist unless they have been un- cision is not to be noticed.’’ We have not be suspended, unless when in the case of reasonably violated, an idea that would agreed to this; to what will we be rebellion or invasion the public safety may have confounded the framers. Thus, we agreeing next? I restate Mr. Lewis’ ob- require it’’ (Art. I, Sec. 9, cl. 1). Any doubt as introduced a virus that will surely servation, a person of great experience, to whether this guarantee applies to persons spread throughout our system of laws. long a student of the courts, ‘‘It is a held in state as well as federal custody was Article I, section 9, clause 2 of the new and remarkable concept in law: removed by the passage of the Fourteenth Constitution stipulates, ‘‘The Privilege that mere wrongness in a constitu- Amendment and by the amendment’s fram- of the Writ of Habeas Corpus shall not tional decision is not to be noticed.’’ ers’ frequent mention of habeas corpus as be suspended, unless when in Cases of Backward reels the mind. one of the privileges and immunities so pro- tected. Rebellion or Invasion the public Safety On December 8, 1995, four former U.S. The preclusion of access to habeas corpus may require it.’’ Attorneys General, two Republicans also violates Due Process. A measure is sub- We are mightily and properly con- and two Democrats, all persons with ject to proscription under the due process cerned about the public safety, which whom I have the honor to be ac- clause if it ‘‘offends some principle of justice is why we enacted the counter-terror- quainted, Benjamin R. Civiletti, Jr., so rooted in the traditions and conscience of ism bill. But we have not been invaded, Edward H. Levi, Nicholas Katzenbach, our people as to be ranked as fundamental,’’ Mr. President, and the only rebellion and Elliot Richardson—I served in ad- as viewed by ‘‘historical practice.’’ Medina v. at hand appears to be against the Con- ministrations with Mr. Levi, Mr. Katz- California, 112 S. Ct. 2572, 2577 (1992). Inde- enbach, Mr. Richardson; I have the pendent federal court review of the constitu- stitution itself. We are dealing here, tionality of state criminal judgments has ex- sir, with a fundamental provision of deepest regard for them—wrote Presi- isted since the founding of the Nation, first law, one of those essential civil lib- dent Clinton. I ask unanimous consent by writ of error, and since 1867 by writ of ha- erties which precede and are the basis that the full text be printed in the beas corpus. Nothing else is more deeply of political liberties. RECORD. rooted in America’s legal traditions and con- The writ of habeas corpus is often re- There being no objection, the letter science. There is no case in which ‘‘a state ferred to as the ‘‘Great Writ of Lib- was ordered to be printed in the court’s incorrect legal determination has erty.’’ William Blackstone (1723–80) RECORD, as follows: ever been allowed to stand because it was reasonable,’’ Justice O’Connor found in called it ‘‘the most celebrated writ in DECEMBER 8, 1995. Wright v. West, 112 S. Ct. 2482, 2497; ‘‘We have Hon. WILLIAM J. CLINTON, English law, and the great and effica- always held that federal courts, even on ha- The White House, cious writ in all manner of illegal im- beas, have an independent obligation to say Washington, DC. prisonment.’’ what the law is.’’ Indeed, Alexander Hamil- I repeat what I have said previously DEAR MR. PRESIDENT: The habeas corpus provisions in the Senate terrorism bill, ton argued, in The Federalist No. 84, that the here on the Senate floor: If I had to which the House will soon take up, are un- existence of just two protections—habeas choose between living in a country constitutional. Though intended in large corpus and the prohibition against ex post with habeas corpus but without free part to expedite the death penalty review facto laws—obviated the need to add a Bill of elections, or a country with free elec- process, the litigation and constitutional Rights to the Constitution. The deference requirement may also vio- tions but without habeas corpus, I rulings will in fact delay and frustrate the late the powers granted to the judiciary imposition of the death penalty. We strongly would choose habeas corpus every under Article III. By stripping the federal urge you to communicate to the Congress time. To say again, this is one of the courts of authority to exercise independent your resolve and your duty under the con- fundamental civil liberties on which judgment and forcing them to defer to pre- stitution, to prevent the enactment of such every democratic society of the world vious judgments made by state courts, the unconstitutional legislation and the con- provision runs afoul of the oldest constitu- has built political liberties that have sequent disruption of so critical of part of tional mission of the federal courts: ‘‘the come subsequently. our criminal punishment system. I make the point that the abuse of The constitutional infirmities reside in duty . . . to say want the law is.’’ Marbury v. habeas corpus—appeals of capital sen- three provisions of the legislation: one re- Madison, 5 U.S. (1 Cranch) 137, 177 (1803). Al- tences—is hugely overstated. A 1995 quiring federal courts to defer to erroneous though Congress is free to alter the federal courts’ jurisdiction, it cannot order them study by the Department of Justice’s state court rulings on federal constitutional matters, one imposing time limits which how to interpret the Constitution, or dictate Bureau of Justice Statistics deter- any outcome in the merits. United States v. mined that habeas corpus appeals by could operate to completely bar any federal habeas corpus review at all, and one prevent Klein, 80 U.S. (13 Wall.) 128 (1871). In 1996, the death row inmates constitute 1 percent the federal courts from hearing the evidence Supreme Court reiterated that Congress has of all Federal habeas filings. Total ha- necessary to decide federal courts from hear- no power to assign ‘‘rubber stamp work’’ to beas filings make up 4 percent of the ing the evidence necessary to decide a fed- an Article III court, ‘‘Congress may be free caseload of Federal district courts. And eral constitutional question. They violate to establish a . . . scheme that operates most Federal habeas petitions are dis- the Habeas Corpus Suspension Clause, the ju- without court participation,’’ the Court said, posed of in less than 1 year. The serious dicial powers of Article III, and due process. ‘‘but that is a matter quite different from in- None of these provisions appeared in the bill structing a court automatically to enter a delays occur in State courts, which judgment pursuant to a decision the court take an average of 5 years to dispose of that you and Senator Biden worked out in the last Congress together with representa- has not authority to evaluate.’’ Gutierrez de habeas petitions. If there is delay, the tives of prosecutors’ organizations. Martinez v. Lamagno, 115 S. Ct 2227, 2234. delay is with the State courts. The deference requirement would bar any Finally, in prohibiting evidentiary hear- It is troubling that Congress has un- federal court from granting habeas corpus ings where the constitutional issue raised dertaken to tamper with the Great relief where a state court has misapplied the does not go to guilt or innocence, the legisla- Writ in a bill designed to respond to United States Constitution, unless the con- tion again violates Due Process. A violation the tragic circumstances of the Okla- stitutional error rose to a level of of constitutional rights cannot be judged in homa City bombing 1995. Habeas corpus ‘‘unreasonableness.’’ The time-limits provi- a vacuum. The determination of the facts as- sumes ‘‘and importance fully as great as the has little to do with terrorism. The sions set a single period of the filing of both state and federal post-conviction petitions validity of the substantive rule of law to be Oklahoma City bombing was a Federal (six months in a capital case and one year in applied.’’ Wingo v. Wedding, 418 U.S. 461, 474 crime and has been tried in Federal other cases), commencing with the date a (1974). courts. state conviction become final on direct re- Prior to 1996, the last time habeas corpus Nothing in our present circumstance view. Under these provisions, the entire pe- legislation was debated at length in con- requires the suspension of habeas cor- riod could be consumed in the state process, stitutional terms was in 1968. A bill substan- pus, which was the practical effect of through no fault of the prisoner or counsel, tially eliminating federal habeas corpus re- the provision in that bill. To require a thus creating an absolute bar to the filing of view for state prisoners was defeated be- Federal court to defer to a State federal habeas corpus petition. Indeed, the cause, as Republican Senator Hugh Scott put period could be consumed before counsel had it at the end of debate, ‘‘if Congress tampers court’s judgment unless the State even been appointed in the state process, so with the great writ, its action would have court’s decision is ‘‘unreasonably that the inmate would have no notice of the about as much chance of being held constitu- wrong’’ effectively precludes Federal time limit or the fatal consequences of con- tional as the celebrated celluloid dog chasing review. I find this disorienting. suming all of it before filing a state petition. the asbestos cat through hell.’’ January 19, 1999 CONGRESSIONAL RECORD — SENATE S607 In more recent years, the habeas reform That is Justice O’Connor, in Wright this, there will be some prisoners who debate has been viewed as a mere adjunct of versus West. She goes on, as the attor- are executed sooner than they other- the debate over the death penalty. But when neys general quote. ‘‘We have always wise would have been. You may take the Senate took up the terrorism bill this satisfaction in that or not, as you year, Senator Moynihan sought to reconnect held that federal courts, even on ha- with the large framework of constitutional beas, have an independent obligation to choose, but we have begun to weaken a liberties: ‘‘If I had to live in a country which say what the law is.’’ tenet of justice at the very base of our had habeas corpus but not free elections,’’ he If I may interpolate, she is repeating liberties. The virus will spread. said, ‘‘I would take habeas corpus every the famous injunction of Justice Mar- This is new. It is profoundly disturb- time,’’ Senator Chafee noted that his uncle, shall in Marbury versus Madison. The ing. It is terribly dangerous. If I may a Harvard law scholar, has called habeas cor- attorneys general go on to say, have the presumption to join in the pus ‘‘the most important human rights pro- Indeed Alexander Hamilton argued, in The judgment of four Attorneys General, vision in the Constitution,’’ With the debate Mr. Civiletti, Mr. Levi, Mr. Katzen- back on constitutional grounds, Senator Federalist No. 84, that the existence of just Biden’s amendment to delete the deference two protections—habeas corpus and the pro- bach, and Mr. Richardson—and I repeat requirement nearly passed, with 46 votes. hibition against ex post facto laws—obviated that I have served in administrations We respectfully ask that you insist, first the need to add a Bill of Rights to the Con- with three of them—this matter is un- and foremost, on the preservation of inde- stitution. constitutional and should be repealed pendent federal review, i.e., on the rejection The letter from the Attorneys Gen- from law. of any requirement that federal courts defer eral continues, but that is the gist of Seventeen years ago, June 6, 1982, to to state court judgments on federal constitu- it. I might point out that there was, be precise, I gave the commencement tional questions. We also urge that separate originally, an objection to ratification address at St. John University Law time limits be set for filing federal and state habeas corpus petitions—a modest change of the Constitution, with those object- School in Brooklyn. I spoke of the pro- which need not interfere with the setting of ing arguing that there had to be a Bill liferation of court-curbing bills at that strict time limits—and that they begin to of Rights added. Madison wisely added time. I remarked: run only upon the appointment of competent one during the first session of the first * * * some people—indeed, a great many counsel. And we urge that evidentiary hear- Congress. But he and Hamilton and people—have decided that they do not agree ings be permitted wherever the factual Jay, as authors of The ‘‘Federalist Pa- with the Supreme Court and that they are record is deficient on an important constitu- pers,’’ argued that with habeas corpus not satisfied to Debate, Legislate, Litigate. tional issue. Congress can either fix the con- They have embarked upon an altogether stitutional flaws now, or wait through sev- and the prohibition against ex post new and I believe quite dangerous course of eral years of litigation and confusion before facto laws in the Constitution, there action. A new triumvirate hierarchy has being sent back to the drawing board. Ulti- would be no need even for a Bill of emerged. Convene (meaning the calling of a mately, it is the public’s interest in the Rights. We are glad that, in the end, we constitutional convention), Overrule (the prompt and fair disposition of criminal cases do have one. But their case was surely passage of legislation designed to overrule a which will suffer. The passage of an uncon- strong, and it was so felt by the fram- particular Court ruling, when the Court’s stitutional bill helps no one. ruling was based on an interpretation of the ers. Constitution), and Restrict (to restrict the We respectfully urge you, as both Presi- To cite Justice O’Connor again: ‘‘A dent and a former professor of constitutional jurisdiction of certain courts to decide par- law, to call upon Congress to remedy these state court’s incorrect legal determina- ticular kinds of cases). flaws before sending the terrorism bill to tion has never been allowed to stand Perhaps the most pernicious of these is the your desk. We request an opportunity to because it was reasonable.’’ attempt to restrict courts’ jurisdictions, for meet with you personally to discuss this Justice O’Connor went on: ‘‘We have it is * * * profoundly at odds with our Na- matter so vital to the future of the Republic always held that Federal courts, even tion’s customs and political philosophy. It is a commonplace that our democracy is and the liberties we all hold dear. on habeas, have an independent obliga- Sincerely, characterized by majority rule and minority tion to say what the law is.’’ rights. Our Constitution vests majority rule BENJAMIN R. CIVILETTI, Jr., Mr. President, we can fix this now. Baltimore, MD. in the Congress and the President while the Or, as the Attorneys General state, we EDWARD H. LEVI, courts protect the rights of the minority. While the legislature makes the laws, and Chicago, IL. can ‘‘wait through several years of liti- the executive enforces them, it is the courts NICHOLAS DEB. gation and confusion before being sent that tell us what the laws say and whether KATZENBACK, back to the drawing board.’’ I fear that they conform to the Constitution. Princeton, NJ. we will not fix it now. This notion of judicial review has been ELLIOT L. RICHARDSON, We Americans think of ourselves as a part of our heritage for nearly two hundred Washington, DC. new nation. We are not. Of the coun- years. There is not a more famous case in Mr. MOYNIHAN. Let me read ex- tries that existed in 1914, there are American jurisprudence than Marbury v. cerpts from the letter: only eight which have not had their Madison and few more famous dicta than The habeas corpus provisions in the Senate form of government changed by vio- Chief Justice Marshall’s that ‘‘It is emphati- bill * * * are unconstitutional. Though in- lence since then. Only the United King- cally the province and the duty of the judi- tended in large part to expedite the death cial department to say what the law is.’’ dom goes back to 1787 when the dele- But in order for the court to interpret the penalty review process, the litigation and gates who drafted our Constitution es- constitutional rulings will in fact delay and law, it must decide cases. If it cannot hear frustrate the imposition of the death penalty tablished this Nation, which continues certain cases, then it cannot protect certain *** to exist. In those other nations, sir, a rights. The constitutional infirmities * * * violate compelling struggle took place, from We need to deal resolutely with ter- the Habeas Corpus Suspension Clause, the ju- the middle of the 18th century until rorism. And we have. But under the dicial powers of Article III, and due process the middle of the 19th century, and be- guise of combating terrorism, we have * * *. yond into the 20th, and even to the end * * * A measure is subject to proscription diminished the fundamental civil lib- under the due process clause if it ‘‘offends of the 20th in some countries, to estab- erties that Americans have enjoyed for some principle of justice so rooted in the tra- lish those basic civil liberties which two centuries; therefore the terrorists ditions and conscience of our people as to be are the foundation of political liberties will have won. ranked as fundamental,’’ as viewed by ‘‘his- and, or those, none is so precious as ha- My bill will repeal this dreadful, un- torical practice.’’ beas corpus, the ‘‘Great Writ.’’ constitutional provision now in public That language is Medina versus Cali- Here we are trivializing this treasure, law. I ask unanimous consent that the fornia, a 1992 decision. To continue, putting in jeopardy a tradition of pro- article entitled ‘‘First in Damage to Independent federal court review of the tection of individual rights by Federal Constitutional Liberties,’’ by Nat constitutionality of state criminal judg- courts that goes back to our earliest Hentoff from the Washington Post of ments has existed since the founding of the foundation. And the virus will spread. November 16, 1996; and the article enti- Nation, first by writ of error, and since 1867 Why are we in such a rush to amend tled ‘‘Clinton’s Sorriest Record’’ from by writ of habeas corpus. our Constitution? Why do we tamper Nothing else is more deeply rooted in the New York Times of October 14, 1996; America’s legal traditions and conscience. with provisions as profound to our tra- be printed in the RECORD. There is no clause in which ‘‘a state court’s ditions and liberty as habeas corpus? There being no objection, the mate- incorrect legal determination has ever been The Federal courts do not complain. It rial was ordered to be printed in the allowed to stand because it was reasonable.’’ may be that because we have enacted RECORD, as follows: S608 CONGRESSIONAL RECORD — SENATE January 19, 1999 [From the Washington Post, November 16, Nor did the press ask the candidates about For example, Congress in 1986 passed an 1996] the Constitution. amnesty bill that allowed many undocu- FIRST IN DAMAGE TO CONSTITUTIONAL Laura Murphy concludes that ‘‘both Clin- mented aliens to legalize their presence in LIBERTIES ton and Dole are indicative of how far the this country. They had to file by a certain (By Nat Hentoff) American people have slipped away from the date, but a large number said they failed to notions embodied in the Bill of Rights.’’ She do so because improper I.N.S. regulations There have been American presidents to omitted the role of the press, which seems discouraged them. whom the Constitution has been a nuisance focused primarily on that part of the First The Supreme Court held that those who to be overruled by any means necessary. In Amendment that protects the press. could show they were entitled to amnesty 1798, only seven years after the Bill of Rights Particularly revealing were the endorse- but were put off by the I.N.S. rules could file was ratified, John Adams triumphantly led ments of Clinton by the New York Times, late. Lawsuits involving thousands of people Congress in the passage of the Alien and Se- The Washington Post and the New Republic, are pending. But the new immigration law dition Acts, which imprisoned a number of among others. In none of them was the presi- throws all those cases—and individuals—out journalists and others for bringing the presi- dent’s civil liberties record probed. (The Post of court. dent or Congress into ‘‘contempt or disre- did mention the FBI files at the White Another case, in the courts for years, pute.’’ So much for the First Amendment. House.) Other ethical problems were cited, stems from an attempt to deport a group of During the Civil War, Abraham Lincoln ac- but nothing was mentioned about habeas Palestinians. Their lawyer sued to block the tually suspended the writ of habeas corpus. corpus, court-stripping, lowering the content deportation action; a Federal district judge, Alleged constitutional guarantees of peace- of the Internet to material suitable for chil- Stephen V. Wilson, a Reagan appointee, ful dissent were swept away during the First dren and the Clinton administration’s de- found that it was an unlawful selective pro- World War—with the approval of Woodrow cided lack of concern for privacy protections ceeding against people for exercising their Wilson. For example, there were more than of the individual against increasingly ad- constitutional right of free speech. The new 1,900 prosecutions for anti-war books, news- vanced government technology. immigration law says the courts may not paper articles, pamphlets and speeches. And A revealing footnote to the electorate’s ig- hear such cases. Richard Nixon seemed to regard the Bill of norance of this subverting of the Constitu- The immigration law protects the I.N.S. Rights as primarily a devilish source of aid tion is a statement by N. Don Wycliff, edi- from judicial scrutiny in a broader way. Over to his enemy. torial page editor of the Chicago Tribune. He the years the courts have barred the service No American president, however, has done tells Newsweek that ‘‘people are not engaged from deliberately discriminatory policies, so much damage to constitutional liberties in the [political] process because there are for example the practice of disallowing vir- as Bill Clinton—often with the consent of no compelling issues driving them to partici- tually all asylum claims by people fleeing Republicans in Congress. But it has been pate. It would be different if we didn’t have persecution in certain countries. The law Clinton who had the power and the will to peace and prosperity.’’ bars all lawsuits of that kind. seriously weaken our binding document in What more could we possibly want? Those are just a few examples of recent in- ways that were almost entirely ignored by cursions on due process of law and other con- the electorate and the press during the cam- [From the New York Times, Oct. 14, 1996] stitutional guarantees. A compelling piece paign. ABROAD AT HOME; CLINTON’S SORRIEST by John Heilemann in this month’s issue of Unlike Lincoln, for example, Clinton did a RECORD Wired, the magazine on the social con- lot more than temporarily suspend habeas sequences of the computer revolution, con- (By Anthony Lewis) corpus. One of his bills that has been enacted cludes that Mr. Clinton’s record on individ- into law guts the rights that Thomas Jeffer- Bill Clinton has not been called to account ual rights is ‘‘breathtaking in its awfulness.’’ son insisted be included in the Constitution. in this campaign for the worst aspect of his He may be, Mr. Heilemann says, ‘‘the worst A state prisoner on death row now has only Presidency. That is his appalling record on civil liberties President since Richard a year to petition a federal court to review constitutional rights. Nixon.’’ And even President Nixon did not the constitutionality of his trial or sentence. The Clinton years have seen, among other leave a legacy of court-stripping statutes. In many previous cases of prisoners eventu- things, a series of measures stripping the It is by no means clear that Bob Dole ally freed after years of waiting to be exe- courts of their power to protect individuals would do better. He supported some of the cuted, proof of their innocence has been dis- from official abuse—the power that has been worst legislation in the Senate, as the Ging- covered long after the present one year the key to American freedom. There has rich Republicans did in the House limit. been nothing like it since the Radical Repub- Why? The Soviet threat, which used to be Moreover, the Clinton administration is— licans, after the Civil War, acted to keep the the excuse for shoving the Constitution as the ACLU’s Laura Murphy recently told courts from holding the occupation of the aside, is gone. Even in the worst days of the the National Law Journal—‘‘the most wire- South to constitutional standards. Red Scare we did not strip the courts of their tap-friendly administration in history.’’ The Republican Congress of the last two protective power. Why are we legislating in And Clinton ordered the Justice Depart- years initiated some of the attacks on the panic now? Why, especially, is a lawyer ment to appeal a unanimous 3rd Circuit courts. But President Clinton did not resist President indifferent to constitutional rights Court of Appeals decision declaring uncon- them as other Presidents have. And he pro- and their protection by the courts? stitutional the Communications Decency posed some of the measures trampling on Act censoring the Internet, which he signed constitutional protections. Mr. MOYNIHAN. Mr. President, I ask into law. Much of the worst has happened this year. unanimous consent that the bill be There is a chilling insouciance in Clinton’s President Clinton sponsored a printed in the RECORD. elbowing the Constitution out of the way. He counterterrorism bill that became law with a There being no objection, the bill was blithely, for instance, has stripped the courts number of repressive features in it. One had ordered to be printed in the RECORD, as of their power to hear certain kinds of cases. nothing to do with terrorism: a provision follows: As Anthony Lewis points out in the New gutting the power of Federal courts to exam- S. 175 York Times, Clinton has denied many people ine state criminal convictions, on writs of their day in court. habeas corpus, to make sure there was no Be it enacted by the Senate and House of Rep- For one example, says Lewis. ‘‘The new im- violation of constitutional rights. resentatives of the United States of America in migration law * * * takes away the rights of The Senate might well have moderated the Congress assembled, thousands of aliens who may be entitled to habeas corpus provision if the President had SECTION 1. REPEAL OF THE REQUIREMENT THAT legalize their situation under a 1986 statute put up a fight. But he broke a promise and A FEDERAL COURT DEFER TO A STATE COURT UNLESS THE STATE giving amnesty to illegal aliens.’’ Cases in- gave way. COURT ACTED IN AN UNREASON- volving as many as 300,000 people who may The counterterrorism law also allows the ABLE MANNER IN HABEAS CORPUS still qualify for amnesty have been waiting Government to deport a legally admitted CASES. to be decided. All have now been thrown out alien, on the ground that he is suspected of (a) REPEAL.—Subsection (d) of section 2254 of court by the new immigration law. a connection to terrorism, without letting of title 28, United States Code, is repealed. There have been other Clinton revisions of him see or challenge the evidence. And it (b) CONFORMING AMENDMENT.—Section the Constitution, but in sum—as David Boaz goes back to the McCarthy period by letting 2264(b) of title 28, United States Code, is of the Cato Institute has accurately put it— the Government designate organizations as amended by striking ‘‘, (d),’’. Clinton has shown ‘‘a breathtaking view of ‘‘terrorist’’—a designation that could have the power of the Federal government, a view included Nelson Mandela’s African National By Mr. MOYNIHAN: directly opposite the meaning of ‘civil lib- Congress before apartheid gave way to de- S. 176. A bill to direct the Secretary ertarian.’ ’’ mocracy in South Africa. of the Interior to conduct a study of al- During the campaign there was no mention The immigration bill just passed by Con- ternatives for commemorating and in- at all of this breathtaking exercise of federal gress has many sections prohibiting review power over constitutional liberties. None by by the courts of decisions by the Immigra- terpreting the history of the Harlem former senator Bob Dole who has largely tion and Naturalization Service or the Attor- Reniassance, and for other purposes; to been in agreement with this big government ney General. Some of those provisions have the Committee on Energy and Natural approach to constitutional ‘‘guarantees.’’ drastic retroactive consequences. Resources. January 19, 1999 CONGRESSIONAL RECORD — SENATE S609

HARLEM RENAISSANCE CULTURAL ZONE ACT (3) recommendations for cooperative ar- NATIONAL CENTER FOR SOCIAL WORK RESEARCH Mr. MOYNIHAN. Mr. President, I rise rangements with State and local govern- ACT today to introduce a bill to establish a ments, historical organizations, and other Mr. INOUYE. Mr. President, I rise cultural zone commemorating the Har- entities. today to introduce legislation to lem Renaissance, one of this country’s (c) STUDY PROCESS.—The Secretary shall— amend the Public Health Service Act (1) conduct the study with public involve- for the establishment of a National greatest cultural, literary, and musical ment and in consultation with State and movements. Pioneered by W.E.B. local officials, scholarly and other interested Center for Social Work Research. Dubois, Alain Locke, and James organizations, and individuals; Social workers provide a multitude Weldon Johnson, the Harlem Renais- (2) complete the study as expeditiously as of health care delivery services sance was at the forefront of this coun- practicable after the date on which funds are throughout America to our children, try’s intellectual, literary, and artistic made available; and families, the elderly, and persons suf- development in the 1920s. Langston (3) on completion of the study, submit to fering from various forms of abuse and Hughes, Zora Neale Hurston, Claude the Committee on Resources of the House of neglect. McKay, Countee Cullen, Jean Toomer, Representatives and the Committee on En- The purpose of this center is to sup- ergy and Natural Resources of the Senate a and Wallace Thurman were among this port and disseminate information with report on the findings and recommendations respect to basic and clinical social movement’s most gifted writers. The of the study. Harlem Renaissance also included the work research, training, and other pro- music of Duke Ellington, the theatrical By Mr. INOUYE: grams in patient care, with emphasis productions of Eubie Blake and Noble S. 177. A bill for the relief of Donald on service to underserved and rural Sissle, and the rich nightlife of the C. Pence; to the Committee on Veter- populations. Cotton Club, the Savoy, and Connie’s ans’ Affairs. Social work research has grown in Inn. size and scope since the 1980’s. In 1998, This bill empowers the Secretary of PRIVATE RELIEF LEGISLATION the National Institutes of Mental the Interior, acting through the Na- Mr. INOUYE. Mr. President, today I Health led the way with $17 million in tional Park Service, to conduct a study am introducing a private relief bill on funding for 61 social work research to determine how best to memorialize behalf of Donald C. Pence of Sanford, grants. Dr. Pat Ewalt, Dean of the De- this great movement and to preserve North Carolina, for compensation for partment of Social Work at the Univer- and maintain its rich history. Working the failure of the Department of Veter- sity of Hawaii, is one of the foremost and cooperating with the appropriate ans Affairs to pay dependency and in- leaders in the field of social work re- state and local authorities, I am con- demnity compensation to Kathryn E. search and has worked diligently to fident that we can properly recognize Box, the now deceased mother of Don- gain recognition of the many impor- and preserve one of this country’s fore- ald C. Pence. It is rare that a federal tant contributions of social work to most cultural, literary, and historical agency admits a mistake. In this case, mental and behavioral health care de- periods. the Department of Veterans Affairs has livery. Mr. President, I ask unanimous con- admitted that a mistake was made and While the Federal Government pro- sent that the bill be printed in the explored ways to permit payment vides funding for various social work RECORD. under the law, including equitable re- research activities through the Na- There being no objection, the bill was lief, but has found no provision to re- tional Institutes of Health and other ordered to be printed in the RECORD, as lease the remaining benefits that were Federal agencies, there presently is no follows: unpaid to Mrs. Box at the time of her coordination or direction of these criti- S. 176 death. My bill would correct this injus- cal activities and no overall assess- Be it enacted by the Senate and House of tice and I urge my colleagues to sup- ment of needs and opportunities for Representatives of the United States of America port this measure. empirical knowledge development. The in Congress assembled, Mr. President, I ask unanimous con- establishment of a Center for Social SECTION 1. SHORT TITLE. sent that the text of the bill be printed Work Research would result in im- This Act may be cited as the ‘‘Harlem Ren- in the RECORD. proved behavioral and mental health aissance Cultural Zone Act of 1999’’. There being no objection, the bill was care outcomes for our nation’s chil- SEC. 2. FINDINGS. Congress finds that— ordered to be printed in the RECORD, as dren, families, and elderly, and others. (1) the Harlem Renaissance was the domi- follows: In order to meet the increasing chal- nant intellectual, literary, and artistic ex- S. 177 lenges of bringing cost-effective, re- pression of the New Negro Movement of the Be it enacted by the Senate and House of search-based, quality health care to all 1920’s; Representatives of the United States of America Americans, we must recognize the im- (2) W.E.B. DuBois, James Weldon Johnson, in Congress assembled, portant contributions of social work and Alain Locke planted the seeds of the SECTION 1. RELIEF OF DONALD C. PENCE. researchers to health care delivery and New Negro Movement, while Langston the central role that the Center for So- Hughes, Zora Neal Hurston, Claude McKay, (a) RELIEF.—The Secretary of the Treasury Countee Cullen, Jean Toomer, and Wallace shall pay, out of any moneys in the Treasury cial Work can provide in facilitating Thurman were among the Movement’s most not otherwise appropriated, to Donald C. this process. gifted writers; and Pence, of Sanford, North Carolina, the sum Mr. President, I ask unanimous con- (3) the Harlem Renaissance also included of $31,128 in compensation for the failure of sent that the text of this bill be printed the music of Duke Ellington, the theatrical the Department of Veterans Affairs to pay on the RECORD. productions of Eubie Blake, and the nightlife dependency and indemnity compensation to There being no objection, the bill was Kathryn E. Box, the now-deceased mother of of the Cotton Club and the Alhamba thea- ordered to be printed in the RECORD, as ters. Donald C. Pence, for the period beginning on July 1, 1990, and ending on March 31, 1993. follows: SEC. 3. STUDY OF ALTERNATIVES FOR CULTURAL S. 178 ZONE TO COMMEMORATE AND IN- (b) LIMITATION ON FEES.—Not more than a TERPRET HISTORY OF THE HARLEM total of 10 percent of the payment authorized Be it enacted by the Senate and House of RENAISSANCE. by subsection (a) shall be paid to or received Representatives of the United States of America (a) IN GENERAL.—The Secretary of the In- by agents or attorneys for services rendered in Congress assembled, terior, acting through the Director of the in connection with obtaining such payment, SECTION 1. SHORT TITLE. National Park Service, shall conduct a study any contract to the contrary notwithstand- This Act may be cited as the ‘‘National of alternatives for commemorating and in- ing. Any person who violates this subsection Center for Social Work Research Act’’. terpreting the history of the Harlem Renais- shall be fined not more than $1,000. SEC. 2 ESTABLISHMENT OF NATIONAL CENTER sance. FOR SOCIAL WORK RESEARCH. (b) MATTERS TO BE CONSIDERED.—The By Mr. INOUYE: (a) IN GENERAL.—Section 401(b)(2) of the study under subsection (a) shall include— S. 178. A bill to amend the Public Public Health Service Act (42 U.S.C. (1) consideration of the establishment of a Health Service Act to provide for the 281(b)(2)) is amended by adding at the end the new unit of the National Park System; establishment of a National Center for following: (2) consideration of the establishment of ‘‘(F) The National Center for Social Work various appropriate designations for sites re- Social Work Research; to the Commit- Research.’’. lating to the history of the Harlem Renais- tee on Health, Education, Labor, and (b) ESTABLISHMENT.—Part E of title IV of sance; and Pensions. the Public Health Service Act (42 U.S.C. 287 S610 CONGRESSIONAL RECORD — SENATE January 19, 1999 et seq.) is amended by adding at the end the described in paragraph (2) and not more than not less than 3 times each fiscal year. The lo- following: 18 individuals to be appointed by the Sec- cation of the meetings of the advisory coun- ‘‘Subpart 5—National Center for Social Work retary under paragraph (3). cil shall be subject to the approval of the Di- Research ‘‘(2) EX OFFICIO MEMBERS.—The ex officio rector of the Center. ‘‘SEC. 485G. PURPOSE OF CENTER. members of the advisory council shall ‘‘(f) ADMINISTRATIVE PROVISIONS.—The Di- ‘‘The general purpose of the National Cen- include— rector of the Center shall designate a mem- ter for Social Work Research (referred to in ‘‘(A) the Secretary, the Director of NIH, ber of the staff of the Center to serve as the this subpart as the ‘Center’) is the conduct the Director of the Center, the Chief Social executive secretary of the advisory council. and support of, and dissemination of infor- Work Officer of the Veterans’ Administra- The Director of the Center shall make avail- mation with respect to basic, clinical, and tion, the Assistant Secretary of Defense for able to the advisory council such staff, infor- services social work research, training, and Health Affairs, the Associate Director of mation, and other assistance as the council other programs in patient care, including Prevention Research at the National Insti- may require to carry out its functions. The child and family care. tute of Mental Health, and the Director of Director of the Center shall provide orienta- ‘‘SEC. 485H. SPECIFIC AUTHORITIES. the Division of Epidemiology and Services tion and training for new members of the ad- ‘‘(a) IN GENERAL.—To carry out the pur- Research (or the designees of such officers); visory council to provide such members with pose described in section 485G, the Director and such information and training as may be ap- of the Center may provide research training ‘‘(B) such additional officers or employees propriate for their effective participation in and instruction and establish, in the Center of the United States as the Secretary deter- the functions of the advisory council. and in other nonprofit institutions, research mines necessary for the advisory council to ‘‘(g) COMMENTS AND RECOMMENDATIONS.— traineeships and fellowships in the study and effectively carry out its functions. The advisory council may prepare, for inclu- investigation of the prevention of disease, ‘‘(3) APPOINTED MEMBERS.—The Secretary sion in the biennial report under section health promotion, and the social work care shall appoint not to exceed 18 individuals to 485J— of persons with and families of individuals the advisory council, of which— ‘‘(1) comments with respect to the activi- with acute and chronic illnesses, including ‘‘(A) not more than two-thirds of such indi- ties of the advisory council in the fiscal child abuse and neglect and child and family vidual shall be appointed from among the years for which the report is prepared; care. leading representatives of the health and sci- ‘‘(2) comments on the progress of the Cen- ‘‘(b) STIPENDS AND ALLOWANCES.—The Di- entific disciplines (including public health ter in meeting its objectives; and rector of the Center may provide individuals and the behavioral or social sciences) rel- ‘‘(3) recommendations with respect to the receiving training and instruction or evant to the activities of the Center, and at future direction and program and policy em- traineeships or fellowships under subsection least 7 such individuals shall be professional phasis of the center. (a) with such stipends and allowances (in- social workers who are recognized experts in The advisory council may prepare such addi- cluding amounts for travel and subsistence the area of clinical practice, education, or tional reports as it may determine appro- and dependency allowances) as the Director research; and priate. determines necessary. ‘‘(B) not more than one-third of such indi- ‘‘SEC. 485J. BIENNIAL REPORT. ‘‘(c) GRANTS.—The Director of the Center viduals shall be appointed from the general may make grants to nonprofit institutions ‘‘The Director of the Center, after con- public and shall include leaders in fields of to provide training and instruction and sultation with the advisory council for the traineeships and fellowships under sub- public policy, law, health policy, economics, Center, shall prepare for inclusion in the bi- section (a). and management. ennial report under section 403, a biennial re- port that shall consist of a description of the ‘‘SEC. 485I. ADVISORY COUNCIL. The Secretary shall make appointments to activities of the Center and program policies ‘‘(a) DUTIES.— the advisory council in such a manner as to of the Director of the Center in the fiscal ‘‘(1) IN GENERAL.—The Secretary shall es- ensure that the terms of the members do not tablish an advisory council for the Center all expire in the same year. years for which the report is prepared. The that shall advise, assist, consult with, and ‘‘(4) COMPENSATION.—Members of the advi- Director of the Center may prepare such ad- make recommendations to the Secretary and sory council who are officers or employees of ditional reports as the Director determines the Director of the Center on matters related the United States shall not receive any com- appropriate. The Director of the Center shall to the activities carried out by and through pensation for service on the advisory coun- provide the advisory council of the Center an the Center and the policies with respect to cil. The remaining members shall receive, opportunity for the submission of the writ- such activities. for each day (including travel time) they are ten comments described in section 485I(g).’’. ‘‘(2) GIFTS.—The advisory council for the engaged in the performance of the functions Center may recommend to the Secretary the of the advisory council, compensation at By Mr. INOUYE: acceptance, in accordance with section 231, rates not to exceed the daily equivalent of S. 179. A bill to amend the Public of conditional gifts for study, investigations, the annual rate in effect for an individual at Health Service Act to provide health and research and for the acquisition of grade GS–18 of the General Schedule. care practitioners in rural areas with grounds or construction, equipment, or ‘‘(c) TERMS.— training in preventive health care, in- maintenance of facilities for the Center. ‘‘(1) IN GENERAL.—The term of office of an cluding both physical and mental care, ‘‘(3) OTHER DUTIES AND FUNCTIONS.—The ad- individual appointed to the advisory council and for other purposes; to the Commit- visory council for the Center— under subsection (b)(3) shall be 4 years, ex- ‘‘(A)(i) may make recommendations to the cept that any individual appointed to fill a tee on Health, Education, Labor, and Director of the Center with respect to re- vacancy on the advisory council shall serve Pensions. search to be conducted by the Center; for the remainder of the unexpired term. A HEALTH CARE TRAINING ACT OF 1999 ‘‘(ii) may review applications for grants member may serve after the expiration of Mr. INOUYE. Mr. President, I rise and cooperative agreements for research or the member’s term until a successor has today to introduce the Rural Preven- training and recommend for approval appli- been appointed. tive Health Care Training Act of 1999, a ‘‘(2) REAPPOINTMENTS.—A member of the cations for projects that demonstrate the bill that responds to the dire need of probability of making valuable contributions advisory council who has been appointed to human knowledge; and under subsection (b)(3) for a term of 4 years our rural communities for quality ‘‘(iii) may review any grant, contract, or may not be reappointed to the advisory health care and disease prevention pro- cooperative agreement proposed to be made council prior to the expiration of the 2-year grams. or entered into by the Center; period beginning on the date on which the Almost one fourth of Americans live ‘‘(B) may collect, by correspondence or by prior term expired. in rural areas and frequently lack ac- personal investigation, information relating ‘‘(3) VACANCY.—If a vacancy occurs on the cess to adequate physical and mental to studies that are being carried out in the advisory council among the members under health care. As many as 21 million of United States or any other country as to the subsection (b)(3), the Secretary shall make the 34 million people living in under- diseases, disorders, or other aspects of an appointment to fill that vacancy not later human health with respect to which the Cen- than 90 days after the date on which the va- served rural areas are without access ter is concerned and, with the approval of cancy occurs. to a primary care provider. In areas the Director of the Center, make such infor- ‘‘(d) CHAIRPERSON.—The chairperson of the where providers exist, there are numer- mation available through appropriate publi- advisory council shall be selected by the Sec- ous limits to access, such as geog- cations for the benefit of public and private retary from among the members appointed raphy, distance, lack of transportation, health entities and health professions per- under subsection (b)(3), except that the Sec- and lack of knowledge about available sonnel and scientists and for the information retary may select the Director of the Center resources. Due to the divesity of rural of the general public; and to be the chairperson of the advisory council. populations, language and cultural ob- ‘‘(C) may appoint subcommittees and con- The term of office of the chairperson shall be vene workshops and conferences. 2 years. stacles are often a factor in the access ‘‘(b) MEMBERSHIP.— ‘‘(e) MEETINGS.—The advisory council shall to medical care. ‘‘(1) IN GENERAL.—The advisory council meet at the call of the chairperson or upon Compound these problems with lim- shall be composed of the ex officio members the request of the Director of the Center, but ited financial resources and many January 19, 1999 CONGRESSIONAL RECORD — SENATE S611 Americans living in rural communities to health care practitioners practicing in nificantly fewer emergency room vis- go without vital health care, especially rural areas. Such training shall, to the ex- its, fewer hospital inpatient days, and preventive care. Children fail to re- tent practicable, include training in health less use of specialists, as compared to care to prevent both physical and mental conventional primary health care. The ceive immunizations and routine disorders before the initial occurrence of checkups. Preventable illnesses and in- such disorders. In carrying out this sub- LaSalle Neighborhood Nursing Center, juries occur needlessly and lead to ex- section, the Secretary shall encourage, but for example, reported that in 1997, pensive hospitalizations. Early symp- may not require, the use of interdisciplinary fewer than 0.02 percent of the primary toms of emotional problems and sub- training project applications. care clients reported hospitalization stance abuse go undetected and often ‘‘(b) LIMITATION.—To be eligible to receive for asthma; fewer than 4 percent of ex- develop into full blown disorders. training using assistance provided under sub- pectant mothers who enrolled delivered section (a), a health care practitioner shall low birth rate infants; and 90 percent of An Institute of Medicine (IOM) report be determined by the eligible applicant in- entitled, ‘‘Reducing Risks for Mental volved to be practicing, or desiring to prac- infants and young children were immu- Disorders: Frontiers for Preventive tice, in a rural area. nized on time. In addition, there was a Intervention Research’’ highlights the ‘‘(c) USE OF ASSISTANCE.—Amounts re- 50 percent reduction in emergency benefits of preventive care for all ceived under a grant made or contract en- room visits and a 97 percent overall pa- health problems. Training of health tered into under this section shall be used— tient satisfaction rate. care providers in prevention is crucial ‘‘(1) to provide student stipends to individ- The 1997 Balanced Budget Act (P.L. uals attending rural community colleges or 105–33) included a provision that, for in order to meet the demand for care in other institutions that service predomi- underserved areas. Currently, rural the first time ever, authorized direct nantly rural communities, for the purpose of Medicare reimbursement of all nurse health care providers face a lack of enabling the individuals to receive preven- preventive care training opportunities. tive health care training; practitioners and clinical nurse spe- Interdisciplinary preventive training ‘‘(2) to increase staff support at rural com- cialists, regardless of the setting in of rural health care providers must be munity colleges or other institutions that which services are performed. This pro- encouraged. Through interdisciplinary service predominantly rural communities to vision built upon previous legislation training rural health care providers facilitate the provision of preventive health that allowed direct reimbursement to care training; can build a strong foundation from the individual nurse practitioners for indi- ‘‘(3) to provide training in appropriate re- vidual services provided in rural health behavioral, biological and psycho- search and program evaluation skills in logical sciences to form the most effec- clinics throughout America. Medicaid rural communities; is gradually being reformed to incor- tive preventive care possible. Inter- ‘‘(4) to create and implement innovative disciplinary team prevention training programs and curricula with a specific pre- porate their services more effectively. will also facilitate both health and vention component; and This bill reinforces the principle of mental health clinics sharing single ‘‘(5) for other purposes as the Secretary de- combining health care delivery in un- service sites and routine consultation termines to be appropriate. derserved areas with the education of ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— advanced practice nurses. To accom- between groups. Emphasizing the men- There are authorized to be appropriated to tal health disciplines and their servcies plish these objectives, Title XIX of the carry out this section, $5,000,000 for each of Social Security Act would be amended as part of the health care team will fiscal years 2000 through 2002.’’. contribute to the overall health of to designate that the services provided rural communities. By Mr. INOUYE: in these nursing school clinics are re- The Rural Preventive Health Care S. 180. A bill to amend title XIX of imbursable under Medicaid. The com- Training Act of 1999 would implement the Social Security Act to provide for bination of grants and the provision of the risk-reduction model described in coverage of services provided by nurs- Medicaid reimbursement furnishes the the IOM study. This model is based on ing school clinics under State Medicare incentives and operational resources to the identification of risk factors and programs; to the Committee on Fi- establish the clinics. In order to meet the increasing chal- targets specific interventions for those nance. lenges of bringing cost-effective and risk factors. NURSING SCHOOL CLINICS ACT OF 1999 quality health care to all Americans, The human suffering caused by poor Mr. INOUYE. Mr. President, I rise we must consider and debate various health is immeasurable, and places a today to introduce the Nursing School proposals, both large and small. Most huge financial burden on communities, Clinics Act of 1999. This measure builds importantly, we must approach the families and individuals. By imple- on our concerted efforts to provide ac- issue of health care with creativity and menting preventive measures to reduce cess to quality health care for all determination, ensuring that all rea- this suffering, the potential psycho- Americans by offering grants and in- sonable avenues are pursued. Nurses logical and financial savings are centives for nursing schools to estab- have always been an integral part of onormous. lish primary care clinics in under- health care delivery. The Nursing Mr. President, I ask unanimous con- served areas where additional medical School Clinics Act of 1999 recognizes sent that the text of this bill be printed services are most needed. In addition, the central role they can perform as in the CONGRESSIONAL RECORD. this measure provides the opportunity There being no objection, the bill was for nursing schools to enhance the care givers to the medically under- served. ordered to be printed in the RECORD, as scope of student training and education Mr. President, I ask unanimous con- follows: by providing firsthand clinical experi- sent that the text of this bill be printed S. 179 ence in primary care facilities. Nursing school administered primary in the CONGRESSIONAL RECORD. Be it enacted by the Senate and House of care clinics are university or nonprofit There being no objection, the bill was Representatives of the United States of America ordered to be printed in the RECORD, as in Congress assembled, entity primary care centers developed primarily in collaboration with univer- follows: SECTION 1. SHORT TITLE. S. 180 This Act may be cited as the ‘‘Rural Pre- sity schools of nursing and the commu- Be it enacted by the Senate and House of ventive Health Care Training Act of 1999’’. nities they serve. These centers are staffed by faculty and staff who are Representatives of the United States of America SEC. 2. PREVENTIVE HEALTH CARE TRAINING. in Congress assembled, nurse practitioners and public health Part D of title VII of the Public Health SECTION 1. MEDICAID COVERAGE OF SERVICES Service Act, as amended by the Health Pro- nurses. Students supplement patient PROVIDED BY NURSING SCHOOL fessions Education Partnership Act of 1998, is care while receiving preceptorships CLINICS. amended by inserting after section 754 the provided by college of nursing faculty (a) IN GENERAL.—Section 1905(a) of the So- following: and primary care physicians, often as- cial Security Act (42 U.S.C. 1396d(a)) is ‘‘SEC. 754A. PREVENTIVE HEALTH CARE TRAIN- sociated with academic institutions, amended— ING. (1) in paragraph (26), by striking ‘‘and’’ at who serve as collaborators with nurse ‘‘(a) IN GENERAL.—The Secretary may the end; make grants to, and enter into contracts practitioners. (2) by redesignating paragraph (27) as para- with, eligible applicants to enable such ap- To date, the comprehensive models of graph (28); and plicants to provide preventive health care care provided by nursing clinics have (3) by inserting after paragraph (26), the training, in accordance with subsection (c), yielded excellent results including sig- following: S612 CONGRESSIONAL RECORD — SENATE January 19, 1999 ‘‘(27) nursing school clinic services (as de- S. 181 section or section 1128 of title 10. However, fined in subsection (v)) furnished by or under Be it enacted by the Senate and House of Rep- for each succeeding service that would other- the supervision of a nurse practitioner or a resentatives of the United States of America in wise justify the issuance of such a medal, the clinical nurse specialist (as defined in sec- Congress assembled, President (in the case of service referred to tion 1861(aa)(5)), whether or not the nurse SECTION 1. REMOVAL OF RESTRICTION THAT A in subsection (a) of this section) or the Sec- practitioner or clinical nurse specialist is PROFESSIONAL PSYCHOLOGIST OR retary concerned (in the case of service re- under the supervision of, or associated with, CLINICAL SOCIAL WORKER PROVIDE ferred to in section 1128(a) of title 10) may a physician or other health care provider; SERVICES IN A COMPREHENSIVE issue a suitable device to be worn as deter- and’’. OUTPATIENT REHABILITATION FA- mined by the President or the Secretary, as (b) NURSING SCHOOL CLINIC SERVICES DE- CILITY TO A PATIENT ONLY UNDER the case may be. THE CARE OF A PHYSICIAN. FINED.—Section 1905 of the Social Security ‘‘(d) For a person to be eligible for issuance Act (42 U.S.C. 1396d) is amended by adding at (a) IN GENERAL.—Section 1861(cc)(2)(E) of of a prisoner-of-war medal, the person’s con- the end the following: the Social Security Act (42 U.S.C. duct must have been honorable for the period ‘‘(v) The term ‘nursing school clinic serv- 1395x(cc)(2)(E)) is amended by inserting be- of captivity which serves as the basis for the ices’ means services provided by a health fore the semicolon ‘‘(except with respect to issuance. care facility operated by an accredited services provided by a professional psycholo- ‘‘(e) If a person dies before the issuance of school of nursing which provides primary gist or a clinical social worker)’’. a prisoner-of-war medal to which he is enti- care, long-term care, mental health counsel- (b) EFFECTIVE DATE.—The amendment tled, the medal may be issued to the person’s ing, home health counseling, home health made by subsection (a) shall apply to serv- representative, as designated by the Presi- care, or other health care services which are ices provided on or after January 1, 2000. dent. within the scope of practice of a registered ‘‘(f) Under regulations to be prescribed by nurse.’’. By Mr. INOUYE: the President, a prisoner-of-war medal that (c) CONFORMING AMENDMENT.—Section 1902 S. 182. A bill to amend title 5, United is lost, destroyed, or rendered unfit for use of the Social Security Act (42 U.S.C. 1396a) is States Code, to require the issuance of without fault or neglect on the part of the amended in subsection (a)(10)(C)(iv), by in- a prisoner-of-war medal to civilian em- person to whom it was issued may be re- serting ‘‘and (27)’’ after ‘‘(24)’’. ployees of the Federal Government who placed without charge. (d) EFFECTIVE DATE.—The amendments are forcibly detained or interned by an ‘‘(g) In this section, the term ‘period of made by this Act shall be effective with re- war’ has the meaning given such term in sec- enemy government or a hostile force tion 101(11) of title 38.’’. spect to payments made under a State plan under wartime conditions; to the Com- under title XIX of the Social Security Act (2) The table of chapters at the beginning (42 U.S.C. 1396 et seq.) for calendar quarters mittee on Governmental Affairs. of part III of such title is amended by insert- commencing with the first calendar quarter ESTABLISHMENT OF A PRISONER OF WAR MEDAL ing after the item relating to chapter 23 the beginning after the date of enactment of this FOR CIVILIAN FEDERAL EMPLOYEES following new item: Act. Mr. INOUYE. Mr. President, all too ‘‘25. Miscellaneous Awards ...... 2501’’. often we find that our Nation’s civil- (b) APPLICABILITY.—Section 2501 of title 5, By Mr. INOUYE: ians who have been captured by a hos- United States Code, as added by subsection S. 181. A bill to amend title XVIII of tile government do not receive the rec- (a), applies with respect to any person who, the Social Security Act to remove the ognition they deserve. The bill I intro- after April 5, 1917, is forcibly detained or in- restriction that a professional psychol- terned as described in subsection (a) of such duce today would correct this inequity section. ogist or clinical social worker provide and establish a prisoner of war medal services in a comprehensive outpatient for civilian employees of the Federal By Mr. INOUYE: rehabilitation facility to a patient only Government. S. 183. A bill to amend title 10, under the care of a physician, and for Mr. President, I ask unanimous con- United States Code, to authorize cer- other purposes; to the Committee on sent that the text of the bill be printed tain disabled former prisoners of war to Finance. in the RECORD. use Department of Defense commissary AUTONOMOUS FUNCTIONING OF CLINICAL PSY- There being no objection, the bill was and exchange stores; to the Committee CHOLOGISTS AND SOCIAL WORKERS UNDER ordered to be printed in the RECORD, as on Armed Services. MEDICARE COMPREHENSIVE OUTPATIENT RE- follows: USE OF DEPARTMENT OF DEFENSE COMMISSARY HABILITATION FACILITY PROGRAM S. 182 AND EXCHANGE STORES Mr. INOUYE. Mr. President, today I Be it enacted by the Senate and House of Rep- Mr. INOUYE. Mr. President, I rise rise to introduce legislation to author- resentatives of the United States of America in today to introduce legislation to en- ize the autonomous functioning of clin- Congress assembled, able former prisoners of war who have ical psychologists and clinical social SECTION 1. PRISONER-OF-WAR MEDAL FOR CI- been separated honorably from their workers within the Medicare com- VILIAN EMPLOYEES OF THE FED- respective services and who have been prehensive outpatient rehabilitation ERAL GOVERNMENT. (a) AUTHORITY TO ISSUE PRISONER-OF-WAR rated to have at least a 30 percent serv- facility program. ice-connected disability to have the In my judgment, it is truly unfortu- MEDAL.—(1) Subpart A of part III of title 5, United States Code, is amended by inserting use of both military commissary and nate that Medicare requires clinical su- after chapter 23 the following new chapter: post exchange privileges. While I real- pervision of the services provided by ‘‘CHAPTER 25—MISCELLANEOUS AWARDS ize it is impossible to adequately com- certain health professionals and does ‘‘Sec. pensate one who has endured long peri- not allow these health professionals to ‘‘2501. Prisoner-of-war medal: issue. ods of incarceration at the hands of our function to the full extent of their § 2501. Prisoner-of-war medal: issue nation’s enemies, I do feel that this state practice licenses. It is especially ‘‘(a) The President shall issue a prisoner- gesture is both meaningful and impor- appropriate that those who need the of-war medal to any person who, while serv- tant to those concerned. It also serves services of outpatient rehabilitation ing in any capacity as an officer or employee as a reminder that our nation has not facilities have access to a wide range of of the Federal Government, was forcibly de- forgotten their sacrifices. social and behavioral science expertise. tained or interned, not as a result of such Mr. President, I ask unanimous con- Clinical psychologists and clinical so- person’s own willful misconduct— sent that the text of the bill be printed ‘‘(1) by an enemy government or its agents, cial workers are recognized as inde- in the RECORD. pendent providers of mental health or a hostile force, during a period of war; or ‘‘(2) by a foreign government or its agents, There being no objection, the bill was care services through the Federal Em- or a hostile force, during a period other than ordered to be printed in the RECORD, as ployee Health Benefits Program, the a period of war in which such person was follows: Civilian Health and Medical Program held under circumstances which the Presi- S. 183 of the Uniformed Services, the Medi- dent finds to have been comparable to the Be it enacted by the Senate and House of Rep- care (Part B) Program, and numerous circumstances under which members of the resentatives of the United States of America in private insurance plans. armed forces have generally been forcibly de- Congress assembled, Mr. President, I ask unanimous con- tained or interned by enemy governments SECTION 1. USE OF COMMISSARY AND EX- sent that the text of this bill be printed during periods of war. CHANGE STORES BY CERTAIN DIS- ‘‘(b) The prisoner-of-war medal shall be of ABLED FORMER PRISONERS OF in the CONGRESSIONAL RECORD. appropriate design, with ribbons and appur- WAR. There being no objection, the bill was tenances. (a) IN GENERAL.—Chapter 54 of title 10, ordered to be printed in the RECORD, as ‘‘(c) Not more than one prisoner-of-war United States Code, is amended by inserting follows: medal may be issued to a person under this after section 1064 the following new section: January 19, 1999 CONGRESSIONAL RECORD — SENATE S613 ‘‘§ 1064a. Use of commissary stores by certain policies that choke them out of their lower tariffs and more access to their disabled former prisoners of war market share. During the 1966 farm bill markets at U.S. farmers’ and ranchers’ ‘‘(a) IN GENERAL.—Under regulations pre- debate, in exchange for decreased gov- expense. America must lead, not fol- scribed by the Secretary of Defense, former ernment payments, our farmers were low—in our back yard and around the prisoners of war described in subsection (b) promised more export opportunities. It world. may use commissary and exchange stores. The Agriculture Ambassador bill we ‘‘(b) COVERED INDIVIDUALS.—Subsection (a) is time for us to deliver on this prom- applies to any former prisoner of war who— ise. are introducing today is supported by ‘‘(1) is separated from active duty in the America’s farmers and ranchers need more than 80 agricultural trade asso- armed forces under honorable conditions; a permanent Ambassador who will rep- ciations. Additionally, State branches and resent their interests worldwide, espe- of these national associations, such as ‘‘(2) has a service-connected disability cially as we face more negotiations in the Missouri Farm Bureau Federation rated by the Secretary of Veterans Affairs at the World Trade Organization and re- and the Missouri Pork Producers Coun- 30 percent or more. gional negotiations with Central and ‘‘(c) DEFINITIONS.—In this section: cil, are weighing in their strong sup- ‘‘(1) The term ‘former prisoner of war’ has South America. There are a lot of op- port. the meaning given the term in section 101(32) portunities that could be opened up to We need to utilize every opportunity of title 38. our farmers and ranchers in the coming we have to help our farmers and ranch- ‘‘(2) The term ‘service-connected’ has the years. ers. Making permanent the position of meaning given the term in section 101(16) of Currently, Mr. Peter Scher serves as a U.S. Trade Representative for Agri- title 38.’’. a Special Negotiator for Agriculture, culture will guarantee that the inter- (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is and he has already been very helpful in ests of American farmers and ranchers amended by inserting after the item relating taking strong stands for our farmers will always have a prominent seat at to section 1064 the following new item: and ranchers. I want to thank him for the negotiating table and will ensure ‘‘1064a. Use of commissary stores by certain his work most recently on getting pork that our agreements are more aggres- disabled former prisoners of added to the United States’ retaliation sively enforced. war.’’. list against the European Union. Sen- Mr. President, I ask unanimous con- ator KERREY and I, and 40 other sen- sent that the text of the bill be printed By Mr. ASHCROFT (for himself, ators, initiated a broad, bipartisan ef- in the RECORD. Mr. DASCHLE, Mr. BAUCUS, Mr. fort to make the needs of our pork There being no objection, the bill was BURNS, Mr. BROWNBACK, Mr. farmers a priority, and we appreciated ordered to be printed in the RECORD, as GRASSLEY, and Mr. INHOFE): the fact that we could work closely follows: S. 185. A bill to establish a Chief Ag- with someone whose mission is to serve S. 185 ricultural Negotiator in the Office of the interests of our nation’s farmers. Be it enacted by the Senate and House of Rep- the United States Trade Representa- However, while Ambassador Scher may resentatives of the United States of America in tive; to the Committee on Finance. serve our Nation’s farmers and ranch- Congress assembled, CHIEF AGRICULTURAL NEGOTIATOR ers until the end of the current admin- SECTION 1. CHIEF AGRICULTURAL NEGOTIATOR. Mr. ASHCROFT. Mr. President, I rise istration, his position has not been (a) ESTABLISHMENT OF A POSITION.—There today to introduce a bill with the made a permanent position through is established the position of Chief Agricul- Democratic Minority Leader, Senator legislation. Therefore, we are introduc- tural Negotiator in the Office of the United DASCHLE, that would ensure that our ing this legislation today because we States Trade Representative. The Chief Agri- cultural Negotiator shall be appointed by the nation’s farmers and ranchers have a want to ensure that the Agriculture permanent trade ambassador. Our President, with the rank of Ambassador, by Ambassador position will transcend ad- and with the advice and consent of the Sen- farmers need a representative in the ministrations. ate. Office of the U.S. Trade Representative The Agricultural Ambassador (the (b) FUNCTIONS.—The primary function of that will focus solely on opening for- Chief Agricultural Negotiator) will be the Chief Agricultural Negotiator shall be to eign markets and ensuring a level play- responsible for conducting trade nego- conduct trade negotiations and to enforce ing field for U.S. agricultural products tiations and enforcing trade agree- trade agreements relating to U.S. agricul- and services. ments relating to U.S. agricultural tural products and services. The Chief Agri- In September 1998, American farmers products and services. Also, under the cultural Negotiator shall be a vigorous advo- and ranchers faced the first-ever cate on behalf of U.S. agricultural interests. bill the Chief’s Agricultural Negotiator The Chief Agricultural Negotiator shall per- monthly trade deficit for U.S. farm and would be a vigorous advocate on behalf form such other functions as the United food products since the United States of U.S. agricultural interests. It is im- States Trade Representative may direct. began tracking trade data in 1941. This perative that U.S. interests always (c) COMPENSATION.—The Chief Agricultural sounds the alarm for a state like Mis- have a strong, clear voice at inter- Negotiator shall be paid at the highest rate souri that receives over one-fourth of national negotiations. of basic pay payable to a member of the Sen- its farm income from agricultural ex- Foreign countries will always have ior Executive Service. ports. agriculture trade barriers—so farmers Mr. BURNS. Mr. President, I rise When I’m thinking about what is must always have an ambassador rep- today in support of a bill that will es- good for the nation’s agricultural pol- resenting their interests. We need to tablish a Chief Agricultural Negotiator icy, I ask, ‘‘What is good for Missouri?’’ send the message to foreign govern- in the Office of the United States Trade That’s because Missouri is a leader in ments that we are serious about break- Representative. farming. Missouri is the No. 2 State in ing down barriers in their markets— As valuable as this position is to our the number of farms we have—second now and in the future. Nation’s farmers, I am concerned that only to Texas. We have just about Our farmers and ranchers need to it is not statutorily part of the Federal every crop imaginable, and Missourians know that their interests will always Government that plays a large role in are the nation’s top producers in many have a sure seat at the table for trade agriculture trade policy. In December, of these crops. Missouri is the second negotiations. Canada and Mexico have Peter Scher, the current agriculture leading state for beef cows. Missouri is already concluded free trade arrange- negotiator was an instrumental player second in hay production. Missouri is ments with Chile. Farmers in Canada in a United States-Canada trade agree- one of the top five pork producing can send their agricultural products to ment that addressed many of the in- states. And Missouri is among the top Chile and, in most instances, face a equities as a result of past trade agree- ten states for production of rice, cot- zero percent tariff level, while U.S. ments. ton, corn, winter wheat, milk, and wa- farmers are confronted with an average Montana’s farmers, and many other termelon. tariff rate of 11 percent in the same farmers nationwide, are dependent on With 26 percent of their income com- market. this office to provide oversight and re- ing from exports, Missouri farmers The EU is negotiating a trade deal dress for NAFTA and other b- and need to know that their ability to ex- with Mexico, Chile, Argentina, Brazil, multi-lateral agreements that may port will expand over time, rather than Paraguay, and Uruguay. Thus, these have not had U.S. agriculture in mind. become subject to foreign protectionist countries will give European farmers I say that with a critical tone as past S614 CONGRESSIONAL RECORD — SENATE January 19, 1999 agreements negotiated by the current current limited and ineffective en banc keep track of precedents and the ability to administration were focused on high- system. Lastly, the Circuit would re- know what our circuit’s law is. In short, big- tech industries, all but ignoring the main intact as an administrative unit, ger is not better. plight of the American farmer. functioning as it now does. The legislation that Senator GORTON The Canadian trade problem in Mon- It is important to note that the Com- and I introduce today is a sensible re- tana is monumental, however, it is just mission adopted the arguments that I organization of the Ninth Circuit. The a small taste of the beginning of our and several other Senators have put Northern Division of the Ninth Circuit agriculture trade problems with the forth to justify a complete division of would join Alaska, Washington, Or- European Union which has been less he Ninth Circuit—Circuit population, egon, Montana, and Idaho. This pro- than compromising on many issues. record caseloads, and inconsistency in posal reflects legislation I introduced The European Union (E.U.) unfairly judicial decisions. However, the Com- in the last Congress which created a restricts imports of U.S. agricultural mission rejected an administrative di- new Twelfth Circuit consisting of the products. Breaking down these barriers vision because it believed it would ‘‘de- States of the Northwest. Like my pre- to trade must be a top priority of the prive the courts now in the Ninth Cir- vious legislation, the Commission’s re- U.S.T.R. American farmers can com- cuit of the administrative advantages port will go far in creating regional pete for any market, any where in the afforded by the present circuit configu- commonality and greater consistency world, but they must have access to a ration and deprive the West and the and dependency in legal decisions. level playing field. Pacific seaboard of a means for main- However, it is my strong suggestion We currently have an extraordinary taining uniform federal law in that that when the Senate Judiciary Com- number of unresolved trade disputes area.’’ mittee conducts hearings on their leg- with the E.U., yet the U.S.T.R. contin- While I don’t necessarily reach the islation, certain modifications be ues to seek U.S./E.U. trade pacts on same conclusion as the Commission closely examined: issues unrelated to agriculture. It is (that an administrative division of the 1. Elimination of the requirement critical that the U.S.T.R.’s agricul- Ninth Circuit is not warranted), I that judges within a region are re- tural trade negotiator be included in strongly agree with the Committee’s quired to rotate to other regions of the these discussions. Otherwise, we will be conclusion that the restructuring of Circuit; forced to react to poor planning and the Ninth Circuit as proposed in the 2. Adjustment of the regional align- negotiating as we were last month in Commission’s Report will ‘‘increase the ments to include Hawaii, the Mariana Canada. In 1996, U.S. agricultural ex- consistency and coherence of the law, Islands and the Territory of Guam in ports reached a record level of $60 bil- maximize the likelihood of genuine the Northern Region; and lion, compared to a total U.S. mer- collegiality, establish an effective pro- 3. Shortening the period in which the chandise trade deficit of $170 billion cedure for maintaining uniform Federal Judicial Center conducts a the same year. By establishing this po- decisional law within the circuit, and study of the effectiveness and effi- sition within the U.S.T.R., it is my relate the appellate forum more closely ciency of the Ninth Circuit divisions hope the administration will recognize to the region it serves.’’ from 8 years to 3 years. what America’s farmers mean to our Mr. President, swift congressional ac- Mr. President, Congress has waited Nation’s economy. tion is needed. One need only look at long enough to correct the problems of Thank you, Mr. President, I yield the the contours of the Ninth Circuit to see the Ninth Circuit. The 49 million resi- floor. the need for this reorganization. dents of the Ninth Circuit are the per- Stretching from the Arctic Circle to sons that suffer. Many wait years be- By Mr. MURKOWSKI (for himself the Mexican border, past the tropics of fore cases are heard and decided, and Mr. GORTON): Hawaii and across the International prompting many to forego the entire S. 186. A bill to provide for the reor- Dateline to Guam and the Mariana Is- appellate process. The Ninth Circuit ganization of the Ninth Circuit Court lands, by any means of measurement, has become a circuit where justice is of Appeals, and for other purposes; to the Ninth Circuit is the largest of all not swift and not always served. the Committee on the Judiciary. U.S. Circuit Courts of Appeal. Mr. President, we have known the NINTH CIRCUIT DIVISION The Ninth Circuit serves a popu- problem of the Ninth Circuit for a long Mr. MURKOWSKI. Mr. President, I lation of more than 49 million people, time. It’s time to solve the problem. am pleased to be joined by my distin- well over a third more than the next The Commission’s recommendations, guished colleague from Washington. largest circuit. By 2010, the Census Bu- as reflected in our legislation, is a good Senator SLADE GORTON, in introducing reau estimates that the Ninth Circuit’s first start. I hope we can resolve this legislation that will go far in improv- population will be more 63 million—a issue this year. ing the consistency, predictability and 40-percent increase in just 13 years, By Mr. SARBANES (for himself, coherency of case law in the Ninth Cir- which inevitably will create an even Mr. DODD, Mr. BRYAN, Mr. cuit U.S. Court of Appeals. more daunting caseload. LEAHY, Mr. EDWARDS, and Mr. Our bill, The Federal Ninth Circuit Because of its massive size, there HOLLINGS): Reorganization Act of 1999, adopts the often results a decrease in the ability S. 187. A bill to give customers notice recommendations of a congressionally- of judges to keep abreast of legal devel- and choice about how their financial mandated Commission that studied the opments within the Ninth Circuit. This institutions share or sell their person- alignment of the U.S. Court of Appeals. unwieldy caseload creates an inconsist- ally identifiable sensitive financial in- Retired Supreme Court Justice Byron ency in Constitutional interpretation. formation, and for other purposes; to R. White, chaired the scholarly Com- In fact, Ninth Circuit cases have an ex- the Committee on Banking, Housing, mission. traordinarily high reversal rate by the and Urban Affairs. The Commission’s Report, released Supreme Court. (During the Supreme last December, calls for a division of Court’s 1996–97 session, the Supreme FINANCIAL INFORMATION PRIVACY ACT OF 1999 the Ninth Circuit into three regionally Court overturned 95 percent of the Mr. SARBANES. Mr. President, I rise based adjudicative divisions—the Ninth Circuit cases heard by the today to address a very important Northern, Middle, and Southern. Each Court.) This lack of Constitutional issue: the protection of every Ameri- of these regional divisions would main- consistency discourages settlements can’s personal, sensitive, financial in- tain a majority of its judges within its and leads to unnecessary litigation. formation that is held by their bank, region. Each division would have exclu- Ninth Circuit Judge, Diramuid securities broker-dealer, or insurance sive jurisdiction over appeals from the O’Scannlain described the problem as company. I am introducing a bill to judicial districts within its region. follows: provide basic financial privacy protec- Further, each division would function tions for our citizens. I am pleased that An appellate court must function as a uni- as a semi-autonomous decisional unit. fied body, and it must speak with a unified Senators DODD, BRYAN, LEAHY, ED- To resolve conflicts that may develop voice. It must maintain and shape a coherent WARDS, and HOLLINGS are joining me in between regions, a Circuit Division for body of law. . . . As the number of opinions the introduction of the Financial Infor- Conflict Correction would replace the increase, we judges risk losing the ability to mation Privacy Act of 1999. January 19, 1999 CONGRESSIONAL RECORD — SENATE S615 This bill seeks to protect a fun- In the wake of the . . . mad rush by large in- Americans’ financial transactions each damental right of privacy for every surers to acquire thrift charters, consumer day have no Federal privacy protec- American who entrusts his or her high- advocates are raising valid questions about tion. ly sensitive and confidential financial whether the insurance arms of these new Abuses have arisen from the sharing conglomerates will share sensitive medical of financial information without a cus- information to a financial institution. records with their lending and marketing di- Every American should know whether visions. tomer’s knowledge or permission. For the financial institution with which he example, the Securities and Exchange The New York Times in an October or she does business undertakes to sell Commission (SEC) last year took en- 11, 1998 article entitled ‘‘Privacy Mat- or share that personal sensitive infor- forcement action against a large bank ters: When Bigger Banks Aren’t Bet- mation with anyone else. Every Amer- that had been giving sensitive cus- ter’’ observed that: ican should know who would be obtain- tomer financial information, including ing that information, and why. Every A growing number of bankers, lawmakers, lists of customers with maturing cer- banking regulators and consumer advocates American should have the opportunity [are] worried about the potential dark side of tificates of deposit, to an affiliated to say ‘‘no’’ if he or she does not want the mergers sweeping the financial industry. stock broker. The SEC found the bank that confidential information dis- As banks, brokerage firms and insurance and the broker’s employees ‘‘blurred closed. Every American should be al- companies combine into huge new conglom- the distinction between the bank and lowed to make certain that the infor- erates, and with legislation before Congress the broker dealer’’ and the broker’s mation is correct. And these rights to make such mergers even easier, there is sales representatives ‘‘used materially should be enforceable. increasing concern about the amount of per- false and misleading sales practices’’ This bill, Mr. President, would ac- sonal financial and medical data that can be which ‘‘culminated in unsuitable pur- collected under one roof. complish these objectives. chases by investors.’’ The SEC found Few Americans understand that, Surveys show that the public is wide- many of the targeted bank customers under current Federal law, a bank, ly concerned about its privacy. A No- were elderly. broker, or insurance company may vember 1998 Louis Harris & Associates Many groups have voiced support for take any information it obtains about survey found that 88 percent of con- legislative consumer financial privacy a customer through his or her trans- sumers are concerned about threats to protections. The American Association actions, and sell or transfer that infor- their personal privacy—more than half, of Retired Persons (AARP) submitted mation to a third party. For example, 55 percent, are ‘‘very concerned.’’ 82 testimony to the Senate Banking Com- they may sell that information to a di- percent of consumers say they have mittee expressing concern about the rect marketer or another financial in- lost all control over how personal in- vulnerability of citizens, particularly stitution, or post it on an Internet formation is used by companies and 61 the elderly, and saying that: website without obtaining the cus- percent do not believe that their rights AARP supports the principle that consum- tomer’s consent or even notifying the to privacy as a consumer are ade- ers should have a voice in the use of their customer. quately protected by law or business personal financial information. Currently, The amount of information that can practices. banks freely share information about their be disclosed is enormous. It includes: Major corporations have bumped up customers’ insured deposit accounts with Savings and checking account bal- against privacy concerns when expand- their uninsured, non-banking affiliates. Bro- ances; kerage affiliates routinely solicit bank cus- ing their marketing services. For ex- tomers based upon this information. This certificate of deposit maturity dates ample, in the last 2 years, some major and balances; not only blurs the line between banking and consumer companies announced that non-banking functions, but furthers confuses any check an individual writes; they would share or sell their cus- any check that is deposited into a consumers about which products are insures tomers’ private data to marketers. by the bank, and which are merely sold by customer’s account; When customers learned through news- the bank’s securities affiliate without guar- stock and mutual fund purchases and antees. Customers should be given the choice sales; papers stories what was happening, they complained strongly and the com- as to whether banks can share information life insurance payouts; and about their accounts with any other entity. panies abandoned the planned sales of health insurance claims. Subsequently, in a letter dated Au- Today’s technology makes it easier, the data. gust 25, 1998 with views on H.R. 10, faster, and less costly than ever for in- Citizen groups have recently ex- AARP expressed its special concern stitutions to have immediate access to pressed serious concerns about the pri- about older Americans’ vulnerability: large amounts of customer informa- vacy implications of banks’ amassing tion; to analyze that data; and to send large databases to meet proposed regu- [E]lderly Americans are among those most latory requirements to ‘‘know your vulnerable to the complex and fundamental that data to others. Banks, securities changes already occurring in this period of firms, and insurance companies are in- customers.’’ financial transformation—and they will be creasingly affiliating and ‘‘cross-mar- The Washington Post in an October put at further risk by the financial mergers keting,’’ or selling the products of af- 31, 1998 editorial entitled ‘‘Privacy permitted by this proposed legislation if the filiates to existing customers. This can Here and Abroad’’ observed widepsread issue of information privacy is not ad- entail the warehousing of large public concern over privacy, stating: dressed. amounts of highly sensitive customer Concern over the privacy of personal data In a written statement before the information and selling it to or sharing is sharpening as the problem appears in more Banking Committee on June 24, 1998, it with other companies, for purposes and sometimes unexpected contexts—every- Consumers Union testified, unknown to the customer. While cross- thing from employer testing of people’s ge- As financial services firms diversity and netic predisposition to resale of their online marketing can bring new and bene- ‘‘cross market’’ an array of financial prod- reading habits or their bank records. When ucts, their interest in obtaining information ficial products to receptive consumers, the data are medical or financial, everyone it can also result in unwanted inva- about consumers is on a collision course but the sellers and resellers seems ready to with consumers’ interest in protecting their sions of personal privacy without cus- agree that people should have some measure privacy. . . . We believe legislation should tomers’ knowledge. of control over how and by whom their data prohibit depository institutions and their af- A June 8, 1998 Business Week com- will be used. filiates from sharing or disclosing informa- mentary entitled ‘‘Big Banker May Be Congress has protected citizens’ pri- tion among affiliates or to third parties Watching You’’ underscored the poten- vacy on prior occasions. In response to without first obtaining the customer’s writ- tial abuses: public concerns, Congress passed pri- ten consent. Suppose that when you retired, your bank vacy laws restricting private compa- A group of seven privacy and con- started deluging you with mailings for senior nies’ disclosure of customer informa- sumer groups, representing conserv- services—each tailored to your exact in- tion without customer consent, such as ative and liberal orientations, includ- come, health needs, and spending habits. Or in the Cable Communications Policy ing The Free Congress Research and your lender slashed your credit-card limit Act and the Video Privacy Protection Education Foundation, Consumers Fed- from $20,000 to $500 after you were diagnosed with a serious disease. Act. Yet while video rentals and cable eration of America, Consumers Union, Those two Orwellian scenarios may sound television selections are prohibited by Electronic Privacy Information Center, far-fetched, but they might not be for long. law from being disclosed, millions of Privacy International, Privacy Times, S616 CONGRESSIONAL RECORD — SENATE January 19, 1999 and U.S. Public Interest Research tion has been tried and, generally, has lution, we would leave it to the regu- Group, wrote on August 26 1998 to all not worked. Many, if not most, con- lators with a direction as to the scope Senate Banking Committee Members sumers are not informed of plans to and purposes that should be followed. to ‘‘sound an urgent alarm about the sell or share their financial transaction This approach would afford an oppor- lack of protections for consumers’ fi- and experience data, are not notified of tunity for public notice and comment, nancial privacy.’’ a right to object, have no access to ver- so all of those affected could present On September 9, 1998, The Washing- ify the accuracy of data, and have no their arguments. The banking and se- ton Post published an editorial, independent body to enforce privacy curities regulators would develop the ‘‘. . . And a Matter of Privacy,’’ argu- protection. Recent studies by the FTC rules to implement these broad prin- ing, and the FDIC of on-line Internet pri- ciples in the way most appropriate for Along with medical records, financial and vacy protection found self-regulation the industry, balancing the consumer’s credit records probably rank among the to be ineffective. Privacy protections privacy choice with business’ desire to kinds of personal data Americans most ex- for ‘‘off-line’’ transactions are far sell or share their customer’s sensitive pect will be kept from prying eyes. As with medical data, though, the privacy of even weaker. financial information with others. highly sensitive financial data has been in- I believe that the protection of the As we proceed in an age of techno- creasingly compromised by mergers, elec- privacy of customers’ personal finan- logical advances and cross-industry tronic data-swapping and the move to an cial information is much too important marketing of financial services, we economy in which the selling of other peo- to ignore any longer. Therefore, I am, need to be mindful of the privacy con- ple’s personal information is highly profit- along with Senators DODD, BRYAN, cerns of the American public. Consum- able—and legal. LEAHY, EDWARDS, and HOLLINGS, intro- ers who wish to keep their sensitive fi- The Post editorial concluded that the ducing the Financial Information Pri- nancial information private should be privacy amendment to last year’s pro- vacy Act of 1999. This bill would re- given a right to do so. Congress can posed financial modernization legisla- quire the Federal banking regulators— and should provide that privacy protec- tion which I introduced with Senators the Federal Deposit Insurance Com- tion by giving consumers enforceable DODD and BRYAN was ‘‘a protection pany, Federal Reserve, Office of the rights of notice, consent, and access well worth considering, especially in Comptroller of the Currency and the through passage of the Financial Infor- the banking context. As the pace of the Office of Thrift Supervision—and the mation Privacy Act. much-touted ‘information economy’ Securities and Exchange Commission Mr. President, I ask unanimous con- quickens, safeguards against these pre- to enact rules to protect the privacy of sent that the full text of the Financial vious unimagined forms of commerce financial information relating to the Information Privacy Act of 1999, to- become ever more important.’’ customers of the institutions they reg- gether with a brief summary of the bill The United States now faces pressure ulate. and some newspaper articles be printed from the European Union nations as a The regulators would define ‘‘con- in the RECORD. result of our lack of privacy protec- fidential customer information’’ in a There being no objection, the mate- tions, in comparison with the ones im- way that includes balances, maturity rials were ordered to be printed in the plemented by the European Union. The dates, transactions, and payouts in RECORD, as follows: European Union Data Protection Di- savings accounts, certificates of de- S. 187 rective, which went into effect on Octo- posit, securities holding and insurance Be it enacted by the Senate and House of ber 25, 1998, goes much further than policies. The regulators would require Representatives of the United States of America any privacy protections in place in the an institution to: in Congress assembled, U.S. The Directive requires that mem- (1) tell its customers what informa- SECTION 1. SHORT TITLE ber states protect privacy rights in the tion it will sell or share, and when, to This Act may be cited as the ‘‘Financial collection of data by both the public whom and for what purposes it will be Information Privacy Act of 1999’’. and private sectors. It prohibits the sold or shared; SEC. 2. DEFINITIONS. transfer of data without first obtaining (2) give customers the right to ‘‘opt In this Act— the individual’s unambiguous consent out,’’ which means they can say ‘‘no’’ (1) the term ‘‘covered person’’ means a per- regarding the transfer of data without to the sharing or selling information to son that is subject to the jurisdiction of any first obtaining the individual’s unam- of the Federal financial regulatory authori- affiliates—unless the customer objects, ties; and biguous consent regarding the transfer institutions could sell or share cus- (2) the term ‘‘Federal financial regulatory and use of his or her personal financial tomer financial data; and authorities’’ means— data. (3) obtain a customer’s informed con- (A) each of the Federal banking agencies, The EU Directives provides ‘‘that the sent before selling or sharing confiden- as that term is defined in section 3(z) of the transfer to a third country of personal tial customer information with an un- Federal Deposit Insurance Act; and data . . . may take place only if . . . the affiliated third party. (B) the Securities and Exchange Commis- third country in question ensures an Under the Act, regulated financial in- sion. adequate level of protection.’’ Since stitutions would be required to allow SEC. 3. PRIVACY OF CONFIDENTIAL CUSTOMER the European Union views current U.S. the customer to review the information INFORMATION. (a) RULEMAKING.—The Federal financial privacy policy as inadequate, U.S. com- to be disclosed for accuracy and to cor- regulatory authorities shall jointly issue panies that do not provide adequate rect errors. Also, these institutions final rules to protect the privacy of confiden- privacy safeguards may have difficulty could not use confidential customer in- tial customer information relating to the conducting business in the EU. The De- formation obtained from another en- customers of covered persons, not later than partment of Commerce proposed a safe tity, such as an insurance underwriter, 270 days after the date of enactment of this harbor so that companies which meet unless that entity had given its cus- Act (and shall issue a notice of proposed certain guidelines would be allowed to tomers the same type of privacy pro- rulemaking not later than 150 days after the conduct business in the EU and send tections as the regulated entities had date of enactment of this Act), which rules shall— data from the EU to the United States. given their customers. (1) define the term ‘‘confidential customer The EU has not accepted the proposed Disclosure of data under several cir- information’’ to be personally identifiable safe harbor as adequate, and negotia- cumstances would be exempted from data that includes transactions, balances, tions continue. Meanwhile, U.S. busi- coverage, including disclosure of infor- maturity dates, payouts, and payout dates, nesses must negotiate private privacy mation that is not personally identifi- of— agreements with EU countries or face able, disclosure necessary to execute (A) deposit and trust accounts; uncertainties in doing business. Con- the customer’s transaction, and other (B) certificates of deposit; gress by enacting privacy protection limited purposes. The Federal bank and (C) securities holdings; and (D) insurance policies; legislation could meet the EU standard securities regulators would enforce the (2) require that a covered person may not and thereby solve this problem for regulations. disclose or share any confidential customer American companies. The bill recognizes the complexity of information to or with any affiliate or agent Unfortunately, industry self-regula- the subject matter involved. Rather of that covered person if the customer to tion to protect the privacy of informa- than have Congress micromanage a so- whom the information relates has provided January 19, 1999 CONGRESSIONAL RECORD — SENATE S617 written notice, as described in paragraphs (4) [From the Washington Post, September 9, insurance forms. Imagine also that you are and (5), to the covered person prohibiting 1998] applying for a mortgage from, say, Citibank, such disclosure or sharing— . . . AND A MATTER OF PRIVACY where you’ve banked for years and which has (A) with respect to an individual that be- just merged with Travelers Group. Despite Along with medical records, financial and came a customer on or after the effective your excellent credit rating, your mortgage credit records probably rank among the date of such rules, at the time at which the is denied by Citibank for reasons that are kinds of personal data Americans most ex- business relationship between the customer unclear. pect will be kept from prying eyes. As with and the covered person is initiated and at Or suppose you’ve just inherited lots of medical data, though, the privacy of even least annually thereafter; and money from a relative’s life insurance policy highly sensitive financial data has been in- (B) with respect to an individual that was and you put the money into your Fleet Bank creasingly compromised by mergers, elec- a customer before the effective date of such account. Pretty soon you get a call from a tronic data-swapping and the move to an rules, at such time thereafter that provides a representative of Quick & Reilly, a broker- economy in which the selling of other peo- reasonable and informed opportunity to the age firm you have never heard of but which ple’s personal information is highly profit- customer to prohibit such disclosure or shar- is owned by Fleet. The broker is equipped able—and legal. ing and at least annually thereafter; with surprisingly detailed knowledge of your Just how much of it is legal in the finan- (3) require that a covered person may not financial situation—along with a few ideas cial arena, though, is a complicated ques- disclose or share any confidential customer about how to invest your windfall. tion. The Senate, struggling with a banking information to or with any person that is not Both situations may be hypothetical but bill, is weighing a proposed amendment that an affiliate or agent of that covered person they aren’t so far-fetched, according to a would draw clearer lines. A judge at the Fed- unless the covered person has first— growing number of bankers, lawmakers, eral Trade Commission, after years of trying (A) given written notice to the customer to banking regulators and consumer advocates to police the sale of credit information to whom the information relates, as described worried about the potential dark side of the telemarketers, two weeks ago ordered one of in paragraphs (4) and (5); and mergers sweeping the financial industry. As the country’s largest credit reporting bu- (B) obtained the informed written or elec- banks, brokerage firms and insurance com- reaus to stop selling customers’ sensitive tronic consent of that customer for such dis- panies combine into huge new conglom- data to such marketers in violation, the closures or sharing; erates, and with legislation before Congress agency said, of the Fair Credit Reporting (4) require that the covered person provide to make such mergers even easier, there is Act. notices and consent acknowledgments to increasing concern about the amount of per- The Senate’s attention to financial privacy customers, as required by this section, in sonal financial and medical data that can be comes in the form of a proposed amendment separate and easily identifiable and distin- collected under one roof. to a banking deregulation bill, already guishable form; passed by the House, that would allow banks FEAR OF DISCLOSURE (5) require that the covered person provide to merge more freely with the providers of So far, this privacy debate has centered notice as required by this section to the cus- other financial services, such as insurers. mainly on the use of patients’ medical tomer to whom the information relates that Once such institutions can merge, though, records, especially by health maintenance describes what specific types of information under current law they are under no restric- organizations. But a new twist has been would be disclosed or shared, and under what tions from sharing even otherwise protected added as banks have expanded into busi- general circumstances, to what specific customer information from division to divi- nesses like securities and insurance sales, types of businesses or persons, and for what sion. (The Fair Credit Reporting Act, which both of which involve the collection of a specific types of purposes such information offers some tough not comprehensive protec- wide range of personal information. could be disclosed or shared; tion for credit information, doesn’t impose Just last week, Citicorp and Travelers (6) require that the customer to whom the the same restrictions on affiliated institu- Group completed their $50 billion merger, information relates be provided with access tions.) creating the world’s largest financial serv- to the confidential customer information For instance, watchdog groups say, if ices conglomerate, with 70 million cus- that could be disclosed or shared so that the Citibank merges with Travelers Inc. insur- tomers. The new company, Citigroup, has ac- information may be reviewed for accuracy ance as expected, information about your cess to a wealth of customer information, in- and corrected or supplemented; bank balance or a bounced check could be cluding mutual fund accounts, health claims (7) require that, before a covered person used to deny you insurance coverage. Con- on insurance policies, and credit card, mort- may use any confidential customer informa- versely, data from a medical exam for insur- gage and car loan balances. Many consumer tion provided by a third party that engages, ance coverage could be shared with your advocates are worried that such sensitive directly or indirectly, in activities that are bank and used to deny you a loan. Milder data can easily be transferred from one part financial in nature, as determined by the possibilities include the use of knowledge of the company to another and possibly be Federal financial regulatory authorities, the about your financial assets being shared disclosed to outside parties. covered person shall take reasonable steps to with or sold to marketers who wish to target ‘‘It is very important for banks to realize assure that procedures that are substantially customers of a given income bracket. the challenge they face in the privacy area is similar to those described in paragraphs (2) An amendment proposed by Sens. Paul something new, different and more difficult through (6) have been followed by the pro- Sarbanes and Christopher Dodd is likely to than what they’ve dealt with before,’’ said vider of the information (or an affiliate or be weighed by the committee marking up the Julie Williams, Acting Comptroller of the agent of that provider); and Senate bill this week or next. It would block Currency. ‘‘It’s in their self-interest to rec- (8) establish a means of examination for such possibilities by prohibiting sharing or ognize privacy as a customer concern and compliance and enforcement of such rules pooling of data not covered by the Fair Cred- deal with it successfully or they may be sub- and resolving consumer complaints. it Reporting Act—known generally as ‘‘expe- ject to more restrictive controls on the abil- (b) LIMITATION.—The rules prescribed pur- rience and transaction data,’’ and including ity to use this information.’’ suant to subsection (a) may not prohibit the account balances and activity—for any pur- Nationsbank, which is acquiring the release of confidential customer pose beyond the reason it was collected, un- BankAmerica Corporation, has already run information— less the customer gives specific permission. into trouble with customer privacy. The (1) that is essential to processing a specific This goes well beyond existing privacy pro- company recently paid nearly $40 million to financial transaction that the customer to tections, which mostly require that the cus- settle a class-action suit and end a Govern- whom the information relates has author- tomer actively ‘‘opt out’’ of such uses—a dif- ment investigation after more than 18,000 ized; ficult proposition when the customer prob- customers many of them elderly, were sold (2) to a governmental, regulatory, or self- ably has not the slightest idea that such complex derivative securities that were far regulatory authority having jurisdiction swapping and spreading of information is too risky for them. Nationbank’s brokerage over the covered financial entity for exam- legal to begin with. For that very reason, it’s arm had used the bank’s customer list to ination, compliance, or other authorized pur- a protection well worth considering, espe- target people to approach, many of whom poses; cially in the banking context. As the pace of mistakenly believed that the derivatives (3) to a court of competent jurisdiction; the much-touted ‘‘information economy’’ were safe and insured. As a result, (4) to a consumer reporting agency, as de- quickens, safeguards against these pre- Nationsbank has imposed new limits on the fined in section 603 of the Fair Credit Report- viously unimagined forms of commerce be- use of private data. ing Act for inclusion in a consumer report come ever more important. ‘‘Talking to a banker used to be like going that may be released to a third party only to confession or seeing a psychiatrist—we for a purpose permissible under section 604 of [From the New York Times, October 11, 1998] thought the information was protected,’’ said Edmund Mierzwinski, executive director that Act; or PRIVACY MATTERS: WHEN BIGGER BANKS of the U.S. Public Interest Group. (5) that is not personally identifiable. AREN’T BETTER Financial services companies argue that (c) CONSTRUCTION.—Nothing in this section (By Leslie Wayne) the ability to swap data between one arm or the rules prescribed under this section Imagine you are being treated for breast and another is a driving force behind many shall be construed to amend or alter any pro- cancer, a fact known to your Travelers’ in- mergers. Banks want to broaden their ability vision of the Fair Credit Reporting Act. surance agent from your medical tests and to ‘‘cross-market’’ credit cards to checking S618 CONGRESSIONAL RECORD — SENATE January 19, 1999 deposit customers or sell stocks and bonds to companies from exporting any such data to didn’t expect,’’ says Susan Grant of the Na- holders of car loans. But bankers say they any country not ruled by the EU to have tional Consumers League. must be careful to balance this desire to sell ‘‘adequate’’ privacy protection measures al- BOILERPLATE new products against the need to maintain ready in place. The Europeans have not ruled Unfortunately, banks sharing data with af- the trust of their customers. the United States ‘‘adequate’’ in this re- filiates are exempt from some of the regula- ‘‘We are very concerned,’’ said Edward gard—no surprise there—though individual tions governing independent credit bureaus. Yingling, executive director for government industries may pass muster or fall under spe- These bureaus are where lenders up till now relations at the American Bankers Associa- cial exemptions. have turned to determine a borrower’s cred- tion. ‘‘The key question is, what is the prop- That means, for instance, that multi- itworthiness. But while Congress prohibited er balance between appropriate and valuable national companies cannot allow U.S. offices the credit bureaus from dealing in medical cross-marketing and invasions of privacy? access to personnel data on European em- records without a customer’s consent, the No one believes medical records should be ployees, and airlines can’t swap reservations new financial hybrids are under no such re- used for cross-marketing in ways that would data without restrictions. More to the point, strictions. And while banks are required to be invasive. It’s more difficult when finan- they can’t share or sell the kinds of data on allow customers to opt out of having their cial information can be used to show our cus- customers that in this country are now rou- data used for other purposes, banks gen- tomers that other products might be very tinely treated as another possible income erally do little to alert customers to their good for them. That’s what everyone has to stream. Would such restraints be a boon to rights—often burying it in legal boilerplate. wrestle with.’’ customers on these shores too? Or will Amer- If financial firms don’t want Congress to PROMISES icans, as the data companies frequently intervene, they should erect Chinese walls to Current law allows bank customers to sign argue, find instead that they want the con- prevent confidential health records from ‘‘opt out’’ forms, preventing one part of a venience and ‘‘one-on-one marketing’’ that being used in the marketing or lending proc- bank from giving personal information to this constant dossier-compiling makes pos- ess. Otherwise, the extra dollars generated another. The Comptroller’s office has found, sible? from ‘‘synergy’’ will be diminished by the In one early case, a U.S. airline is being however, that few banks highlight this op- cost of incurring the public’s wrath. tion. ‘‘Most bank customers can’t ever recall sued in Sweden to prevent its compiling and selling a database of, for instance, pas- seeing anything like this,’’ Ms. Williams SUMMARY OF FINANCIAL INFORMATION sengers who requested kosher meals or said. PRIVACY ACT OF 1999 wheelchair assistance on arrival from trans- As part of its merger application to the Sec. 1. Short title Federal Reserve Board, Citigroup made a atlantic flights. Do customers want the The bill will be called the ‘‘Financial Infor- ‘‘Global Privacy Promise,’’ which would ‘‘convenience’’ of this kind of tracking, and mation Privacy Act of 1999.’’ ‘‘provide customers the right to prevent if not, how might they—we—avoid having it Citigroup from sharing customer informa- offered? The contrast between systems is a Sec. 2. Definitions tion with others, including affiliates, for chance to consider which of the many busi- The Act defines ‘‘federal financial regu- cross-marketing purposes.’’ Customers will ness-as-usual uses of data in this country latory authorities’’ to include the Fed, FDIC, also be given opt-out provisions and Travel- rise to the level of a privacy violation from OTS, OCC and SEC, and the term ‘‘covered ers has pledged that it will not share the which citizens should be shielded by law. person’’ to mean persons subject to the regu- medical or health information of its insur- latory authorities’ jurisdictions. [From Business Week, June 8, 1998] ance customers ‘‘for marketing purposes.’’ Sec. 3. Privacy of confidential customer infor- Consumer advocates like Mr. Mierzwinski BIG BANKER MAY BE WATCHING YOU mation say such protections should be a matter of (By Dean Foust) (A) Rulemaking.—The Act requires the Fed- law, and not established case by case. Suppose that when you retired, your bank eral Reserve, Federal Deposit Insurance Cor- Senator Christopher J. Dodd, Democrat of started deluging you with mailings for senior poration, Office of Thrift Supervision, Office Connecticut, has been leading a push in Con- services—each tailored to your exact in- of the Comptroller of the Currency and Secu- gress for greater financial privacy restric- come, health needs, and spending habits. Or rities and Exchange Commission to promul- tions. your lender slashed your credit-card limit gate rules within 270 days of the Act’s enact- ‘‘There are hardly any safeguards out from $20,000 to $500 after you were diagnosed ment to protect the privacy of financial in- there,’’ Mr. Dodd told the Senate Banking with a serious disease. formation relating to the customers of the Committee last month. ‘‘As each year goes Those two Orwellian scenarios may sound institutions they regulate. by, the vulnerability of the people we rep- far-fetched, but they might not be for long. (1) The regulators will define ‘‘confidential resent becomes more exposed. The longer we In the wake of the proposed megamerger be- customer information,’’ which will include delay, we are exposing millions to unfair ac- tween Citicorp and Travelers Group Inc. and transactions, balances, maturity dates, pay- cess by people who should not have access.’’ the mad rush by large insurers to acquire outs and payout dates of deposit and trust thrift charters, consumer advocates are rais- account, certificates of deposit, securities [From the Washington Post, October 31, 1998] ing valid questions about whether the insur- holdings and insurance policies. PRIVACY HERE AND ABROAD ance arms of these new conglomerates will (2) The customers will have the right to Concern over the privacy of personal data share sensitive medical records with their prohibit disclosure or sharing confidential is sharpening as the problem appears in more lending and marketing divisions. customer information with affiliates of the and sometimes unexpected contexts—every- Critics fear that as the new Citigroup and institution (opt-out). thing from employer testing of people’s ge- other planned banking behemoths strain to (3) The institutions could not disclose or netic predispositions to resale of their online justify their hefty sticker prices, they’ll face share confidential customer information reading habits or their bank records. When increasing pressure to exploit customer data with unaffiliated third parties unless the the data are medical or financial, everyone for profit. But if they overstep their bounds, customer has consented to disclosure (opt-in) but the sellers and resellers seems ready to the financial industry ‘‘risks a customer after receiving notification. agree that people should have some measure backlash that could . . . lead to restrictions (4) The notices and consent acknowledg- of control over how and by whom their data on your ability to use previous information ments provided to customers must be ‘‘in will be used. But how, other than piece-meal, resources,’’ warns Acting Comptroller of the separate and easily identifiable and distin- can such control be established, and what Currency Julie L. Williams. guishable form.’’ would a more general right to data privacy Banking representatives downplay the (5) The notices would describe the types of look like? risks, arguing that lenders would be loath to information to be disclosed or shared and One approach very different from that of use health records in the credit process for under what circumstances, to what types of the United States, as it happens, is about to fear of violating the Americans with Disabil- businesses or persons and for what purposes be thrust upon the consciousness of many ities Act. And at Citicorp, spokesman Jack the information could be disclosed or shared. American businesses as a European law Morris says that ‘‘I don’t think we have even (6) Customers must be provided with access called the European Union Data Privacy Di- thought about’’ using Travelers’ insurance to the confidential customer information rective goes into effect. The European direc- records. that could be shared to review for accuracy. tive has drawn attention not only because But the biggest justification for creating (7) Covered persons cannot use confidential the European approach to and history on conglomerates like Citigroup—and the com- customer information from other sources un- data privacy are sharply different from our bined Bank of America-NationsBank Corp.— less the covered persons have taken reason- own but also because the new directive is exactly the synergy from cross-marketing able steps to assure that procedures substan- comes with prohibitions on export that new products. In 1996, bankers lobbied Con- tially similar to those provided for in the would crimp the options of any company gress vigorously for changes in the Fair Act have been followed. that does business both here and in Europe. Credit Reporting Act of 1970 that let them (8) The regulators shall establish a means The directive imposes sweeping prohibi- share more credit information with affiliates of examination for compliance and enforce- tions on the use of any personal data without dealing in life insurance, mortgages, and ment and resolving consumer complaints. the explicit consent of the person involved, credit cards—much to the chagrin of activ- (B) Limitation.—The Act contains several for that purpose only (repeated uses or resale ists. ‘‘We think it’s inappropriate for banks exceptions, circumstances under which the require repeated permission) and also bars to use information in ways that consumers privacy protections do not apply. The Act January 19, 1999 CONGRESSIONAL RECORD — SENATE S619 would not prohibit the release of confiden- Last September, Senator SARBANES balances, stock and mutual fund pur- tial customer information: and I proposed legislation similar to chases and sales, life insurance payouts (1) that is essential to processing a specific the Financial Information Privacy Act and health insurance claims. financial transaction that the customer has Our legislation would protect the pri- authorized; as an amendment to HR 10, the Finan- (2) to a government, regulatory or self-reg- cial Services Modernization Act. Un- vacy of this financial information by ulatory authority with jurisdiction over the fortunately, the amendment was de- directing the Federal Reserve Board, financial institution for examination, com- feated in the Senate Banking Commit- Office of Thrift Supervision, Federal pliance or other authorized purposes; tee by a vote of 8–10 along party lines. Deposit Insurance Corporation, Office (3) to a court of competent jurisdiction; I was disappointed by this outcome, of the Comptroller of the Currency, and (4) to a consumer reporting agency for in- the Securities and Exchange Commis- clusion in a consumer report to be released but am heartened by comments from to a third party for a permissible purpose; or my colleagues on both sides of the aisle sion to jointly promulgate rules requir- (5) that is not personally identifiable. who acknowledge financial privacy as ing financial institutions they regulate (C) Construction.—‘‘Nothing in this section an important issue. I look forward to to: (1) inform their customers what in- or the rules prescribed under this section working with both Democrats and Re- formation is to be disclosed, and when, shall be construed to amend or alter any pro- to whom and for what purposes the in- vision of the Fair Credit Reporting Act.’’ publicans on the Senate Banking Com- mittee and other interested members formation is to be disclosed; (2) allow Mr. DODD. Mr. President, I rise on this critical issue. I urge my col- customers to review the information today with Senator SARBANES to intro- for accuracy; and (3) for new cus- leagues to support this proposal. I duce the Financial Information Pri- tomers, obtain the customers’ consent vacy Act. This important legislation thank the Chair. Mr. LEAHY. Mr. President, I am to disclosure, and for existing cus- would give customers notice and choice tomers, give the customers a reason- pleased to join Senator SARBANES in in- about whether and how their financial troducing the Financial Information able opportunity to object to disclo- institutions share or sell their con- sure. These financial institutions could Privacy Act of 1999. Senator SARBANES, fidential financial information. use confidential customer information along with Senators DODD and BRYAN, The right to privacy is among the from other entities only if the entities most cherished of our constitutional have been leaders on the Senate Bank- ing Committee in protecting the pri- had given their customers similar pri- rights. But this right has been under vacy protections. assault in a number of areas, including vacy of personal financial information. Mr. President, the right to privacy is I hope the Financial Information Pri- with regard to citizens’ financial vacy Act is just the beginning of this records, medical records, and prescrip- a personal and fundamental right pro- tected by the Constitution of the new Congress’ efforts to address the tion drug and retail purchases. This privacy issues raised by ultra competi- United States. But the American peo- bill is an important first step in pro- tive marketplaces in the information ple are growing more and more con- tecting consumers’ most personal, sen- age. sitive financial information: their bank cerned over encroachments on their For the past three Congresses, I have account balances, transactions involv- personal privacy. introduced comprehensive medical pri- I seems that everywhere we turn, new ing their stocks and mutual funds, and vacy legislation. I plan to soon intro- technologies, new communications payouts on their insurance policies. duce the Medical Information Privacy media, and new business services cre- This information has become a com- and Security Act to establish the first ated with the best of intentions and modity and is being distributed and comprehensive federal medical privacy highest of expectations also pose a sold among businesses all over the law. It would close the existing gaps in world but without the knowledge or threat to our ability to keep our lives federal privacy laws to ensure the pro- consent of the consumers whose very to ourselves, to live, work and think tection of personally identifiable own information is being conveyed. without having giant corporations health information. Medical records The sharing of their most sensitive, looking over our shoulders. contain the most intimate, sensitive This incremental encroachment on private financial information has be- information about a person and must our privacy has happened through the come increasingly prevalent given two be safeguarded. key factors: (1) technological advances lack of safeguards on personal, finan- This Congress will also need to con- which facilitate the collection and re- cial and medical information about sider how our privacy safeguards for trieval of information; and (2) the for- each of us that can be stolen, sold or personal, financial and medical infor- mation of new, diversified business af- mishandled and find its way into the mation measure up to the tough pri- filiations, under which companies can wrong hands with the push of a button. vacy standards established by the Eu- more easily access personal data on Our right of privacy has become one ropean Union Data Protection Direc- each other’s customers. of the most vulnerable rights in the in- tive, which took effect on October 25, In this environment, there are dan- formation age. The digitalization of in- 1998. That could be a big problem for gers of misuse and abuse of confiden- formation and the explosion in the American businesses, since the new tial financial information. For in- growth of computing and electronic rules require EU member countries to stance, we know of instances where, networking offer tremendous potential prohibit the transmission of personal without customer permission, some benefits to the way Americans live, data to or through any non-EU country banks have provided in-house, affiliate work, conduct commerce, and interact that fails to provide adequate data pro- brokers with lists of older customers with their government. But the new tection as defined under European law. who have maturing CDs. The brokers technology also presents new threats European officials have said repeat- then solicited these consumers for to our individual privacy and security, edly over the past year that the patch- risky investments, which they mislead in particular, our ability to control the work of privacy laws in the United the customer to believe were FDIC-in- terms under which our personal infor- States may not meet their standards. sured. mation is acquired, disclosed, and used. Our law is less protective than EU The Financial Information Privacy In the financial services industry, for standards in a variety of respects on a Act of 1999 would require banks and se- example, conglomerates are offering a range of issues, including requirements curities firms to protect the privacy of wide variety of services, each of which to obtain data fairly and lawfully; lim- their customers’ financial records. Cus- requires a customer to provide finan- itations on the collection of sensitive tomers would be given the opportunity cial, medical or other personal infor- data; limitations on the purpose of to prevent banks and securities firms mation. And nothing in the law pre- data collection; bans on the collection from disclosing or selling this informa- vents subsidiaries within the conglom- and storage of unnecessary personal in- tion to affiliates. Before banks or secu- erate from sharing this information for formation; requirements regarding rities firms could disclose or sell the uses other than the use the customer data accuracy; limitations regarding information to third parties, they thought he or she was providing it for. duration of storage; and centralized su- would be required to give notice to the In fact, under current Federal law, a fi- pervision of privacy protections and customer and obtain the express writ- nancial institution can sell, share, or practices. ten permission of the consumer before publish savings account balances, cer- The problem is not that Europe pro- making any such disclosure. tificates of deposit maturity dates and tects privacy too much. The problem is S620 CONGRESSIONAL RECORD — SENATE January 19, 1999 our own failure to keep U.S. privacy In the Western United States, irri- S. 188 laws up to date. The EU Directive is an gated agriculture is the single largest Be it enacted by the Senate and House of Rep- example of the kind of privacy protec- user of water. Studies indicate that resentatives of the United States of America in tion that American consumers need substantial quantities of water di- Congress assembled, and do not have. It has encouraged Eu- verted for irrigation do not make it to SECTION 1. SHORT TITLE. ropean companies to develop good pri- This Act may be cited as the ‘‘Water Con- the fields, with a significant portion servation and Quality Incentives Act’’. vacy techniques. It has produced poli- lost to evaporation or leakage fro irri- SEC. 2. FINDINGS. cies, including policies on cryptog- gation canals. Congress finds that— raphy, that are consistent with the in- In Oregon and other States that rec- (1) in many parts of the United States, terests of both consumers and busi- ognize rights to conserved water for water supplies are insufficient to meet cur- nesses. those who conserve it, irrigators and rent or expected future demand during cer- The Financial Information Privacy other water users could gain rights to tain times of the year; Act updates U.S. privacy laws in the (2) a number of factors (including growing use conserved water while also increas- populations, increased demands for food and evolving financial services industry. It ing the amount of water available for calls for fundamental protections of fiber production, and new environmental de- other uses by implementing conserva- the personal, confidential financial in- mands for water) are placing increased de- tion and efficiency measures to reduce mands on existing water supply sources; formation of all American citizens. I water loss. (3) increased water conservation, water urge my colleagues to support it. The Federal government can play a quality enhancement, and more efficient use role in helping meet our nation’s of water supplies could help meet increased By Mr. WYDEN (for himself and demands on water sources; Mr. BURNS): changing water needs. In many West- (4) in States that recognize rights to con- S. 188. A bill to amend the Federal ern States, supply problems can be ad- served water for persons who conserve it, ir- Water Pollution Control Act to author- dressed by providing financial incen- rigation suppliers, farmers, ranchers, and ize the use of State revolving loan tives to help water users implement other users could gain rights to use con- funds for construction of water con- cost effective water conservation and served water while also increasing the quan- servation and quality improvements; efficiency measures consistent with tity of water available for other beneficial to the Committee on Environment and State water law. uses by implementing measures to reduce water loss during transport to, or applica- Public Works. And, we can improve water quality tion on, the fields; WATER CONSERVATION AND QUALITY throughout the nation by giving great- (5) reducing the quantity of water lost dur- INCENTIVES ACT er flexibility to States to use Clean ing transport to the fields and improving Mr. WYDEN. Mr. President, twenty- Water Act funds to control polluted water quality can help areas better meet five years after enactment of the Clean runoff, if that’s where the money is changing population and economic needs; Water Act, we still have not achieved needed most. and (6) the role of the Federal Government in the law’s original goal that all our na- Today, I am pleased to be joined by tion’s lakes, rivers and streams would helping meet those changing water needs my colleague, Senator BURNS, in intro- should be to provide financial assistance to be safe for fishing and swimming. ducing legislation to authorize the After 25 years, it’s time for the next help irrigators, farmers, and ranchers imple- Clean Water State Revolving Fund pro- ment practical, cost-effective water quality generation of strategies to solve our re- gram to provide loans to water users to and conservation measures. maining water quality problems. We fund conservation measures or runoff SEC. 3. USE OF STATE REVOLVING LOAN FUNDS need to give States new tools to over- controls. States would be authorized, FOR WATER CONSERVATION IM- come the new water quality challenges PROVEMENTS. they are now facing. but not required, to use their SRF Section 603 of the Federal Water Pollution The money that has been invested in funds for these purposes. Participation Control Act (33 U.S.C. 1383) is amended— controlling water pollution from fac- by water users, farmers, ranchers and (1) in the first sentence of subsection (c)— tories and upgrading sewage treatment other eligible loan recipients would (A) by striking ‘‘and (3)’’ and inserting also be entirely voluntary. ‘‘(3)’’; and plants has gone a long way to control- (B) by inserting before the period at the ling these urban pollution sources. In The conservation program would be end the following: ‘‘, (4) for construction of most cases, the remaining water qual- structured to allow participating users water conservation improvements by eligible ity problems are no longer caused by to receive a share of the water saved recipients under subsection (i)’’; and pollution spewing out of factory pipes. through conservation or more efficient (2) by adding at the end the following: Instead, they are caused by runoff from use, which they could use in accord- ‘‘(i) WATER CONSERVATION IMPROVE- a myriad of sources ranging from farm ance with State law. This type of ap- MENTS.— fields to city streets and parking lots. proach would create a win/win situa- ‘‘(1) DEFINITION OF ELIGIBLE RECIPIENT.—In this subsection, the term ‘eligible recipient’ In my home State of Oregon, more tion with more water available for both means a municipality, quasi-municipality, than half of our streams don’t fully the conservers and for instream flows. municipal corporation, special district, con- meet water quality standards. And the And, by using the SRF program, the servancy district, irrigation district, water largest problems are contamination Federal seed money would be repaid users’ association, tribal authority, inter- form runoff and meeting the standards over time and gradually become avail- municipal, interstate, or State agency, non- for water temperatures. able to fund conservation or other profit private organization, a member of In many cases, conventional ap- measures to solve water quality prob- such an association, authority, agency, or proaches will not solve these problems. lems in other areas. organization, or a lending institution, lo- But we can achieve water temperature cated in a State that has enacted laws that— My proposal has the support of the ‘‘(A) provide a water user who invests in a standards and obtain other water qual- Farm Bureau, Oregon water users, the ity benefits by enhancing stream flows water conservation improvement with a Environmental Defense Fund and the right to use water conserved by the improve- and improving runoff controls. Oregon Water Trust. ment, as allowed by State law; A major problem for many streams in I urge my colleagues to support giv- ‘‘(B) provide authority to reserve minimum Oregon and in many other areas of the flows of streams in the State; and Western United States is that water ing States greater flexibility to use their Clean Water funds for water con- ‘‘(C) prohibit transactions that adversely supplies are fully appropriated or over- affect existing water rights. servation or runoff control when the appropriated. There is currently no ‘‘(2) FINANCIAL ASSISTANCE.—A State may extra water to spare for increased State decides that is the best way to provide financial assistance from its water stream flows. solve water quality problems and the pollution control revolving fund to an eligi- We can’t create new water to fill the water users voluntarily agree to par- ble recipient to construct a water conserva- gap. But we can make more water ticipate. tion improvement, including— available for this use through increased Mr. President, I ask unanimous con- ‘‘(A) piping or lining of an irrigation canal; sent that the text of the bill be printed ‘‘(B) wastewater and tailwater recovery or water conservation and more efficient recycling; use of existing water supplies. in the RECORD. ‘‘(C) irrigation scheduling; The key to achieving this would be to There being no objection, the bill was ‘‘(D) water use measurement or metering; create incentives to reduce wasteful ordered to be printed in the RECORD, as ‘‘(E) on-field irrigation efficiency improve- water use. follows: ments; and January 19, 1999 CONGRESSIONAL RECORD — SENATE S621 ‘‘(F) any other improvement that the State tion, this legislation would authorize One way in which we can help is to ex- determines will provide water conservation the President to issue a proclamation tend military travel privileges to these benefits. designating Memorial Day and Veter- distinguished American veterans. I ‘‘(3) VOLUNTARY PARTICIPATION.—The par- ans Day as days for prayer and cere- have received numerous letters from ticipation of an eligible recipient in the water conservation improvement shall be monies honoring American veterans. all over the country attesting to the voluntary. This legislation would help restore the importance attesting to this issue by ‘‘(4) USE OF CONSERVED WATER.—The quan- recognition our veterans deserve for veterans. Therefore, I ask that my col- tity of water conserved through the water the sacrifices they have made on behalf leagues show their concern and join me conservation improvement shall be allocated of our nation. in saying ‘‘thank you’’ by supporting in accordance with applicable State law, in- Mr. President, I ask unanimous con- this legislation. cluding any applicable State law requiring a sent that the text of the bill be printed Mr. President, I ask unanimous con- portion of the conserved water to be used for in the RECORD. sent that the text of my bill be printed instream flow enhancement or other con- There being no objection, the bill was servation purposes. in the RECORD. ordered to be printed in the RECORD, as ‘‘(5) LIMITATION ON USE FOR IRRIGATED AGRI- There being no objection, the bill was CULTURE.—Conserved water made available follows: ordered to be printed in the RECORD, as under paragraph (4) shall not be used to irri- S. 189 follows: gate land that has not previously been irri- Be it enacted by the Senate and House of S. 190 gated unless the use is authorized by State Representatives of the United States of America Be it enacted by the Senate and House of Rep- law and will not diminish water quality.’’. in Congress assembled, resentatives of the United States of America in SEC. 4. USE OF STATE REVOLVING LOAN FUNDS SECTION 1. RESTORATION OF TRADITIONAL DAY Congress assembled, FOR WATER QUALITY IMPROVE- OF OBSERVANCE OF MEMORIAL MENTS. DAY. SECTION 1. TRAVEL ON MILITARY AIRCRAFT OF Section 603 of the Federal Water Pollution (a) IN GENERAL.—Section 6103(a) of title 5, CERTAIN DISABLED FORMER MEM- Control Act (33 U.S.C. 1383) (as amended by United States Code, is amended in the item BERS OF THE ARMED FORCES. section 3) is amended— relating to Memorial Day by striking out (a) IN GENERAL.—Chapter 53 of title 10, (1) in the first sentence of subsection (c), ‘‘the last Monday in May.’’ and inserting in United States Code, is amended by adding by inserting before the period at the end the lieu thereof ‘‘May 30.’’. after section 1060a the following new section: following: ‘‘, and (5) for construction of (b) DISPLAY OF FLAG.—Section 2(d) of the ‘‘§ 1060b. Travel on military aircraft: certain water quality improvements or practices by joint resolution entitled ‘‘An Act to codify disabled former members of the armed eligible recipients under subsection (j)’’; and and emphasize existing rules and customs forces (2) by adding at the end the following: pertaining to the display and use of the flag ‘‘The Secretary of Defense shall permit ‘‘(j) WATER QUALITY IMPROVEMENTS.— of the United States of America’’, approved any former member of the armed forces who ‘‘(1) DEFINITION OF ELIGIBLE RECIPIENT.—In June 22, 1942 (36 U.S.C. 174(d)), is amended by is entitled to compensation under the laws this subsection, the term ‘eligible recipient’ striking out ‘‘the last Monday in May;’’ and administered by the Secretary of Veterans means a municipality, quasi-municipality, inserting in lieu thereof ‘‘May 30;’’. Affairs for a service-connected disability municipal corporation, special district, con- (c) PROCLAMATION.—The President is au- rated as total to travel, in the same manner servancy district, irrigation district, water thorized and requested to issue a proclama- and to the same extent as retired members of users’ association or member of such an as- tion calling upon the people of the United the armed forces, on unscheduled military sociation, tribal authority, intermunicipal, States to observe Memorial Day as a day for flights within the continental United States interstate, or State agency, nonprofit pri- prayer and ceremonies showing respect for and on scheduled overseas flights operated vate organization, or lending institution. American veterans of wars and other mili- by the Military Airlift Command. The Sec- ‘‘(2) FINANCIAL ASSISTANCE.—A State may tary conflicts. retary of Defense shall permit such travel on provide financial assistance from its water a space-available basis.’’. pollution control revolving fund to an eligi- By Mr. INOUYE: (b) CLERICAL AMENDMENT.—The table of ble recipient to construct or establish water S. 190. A bill to amend title 10, sections at the beginning of such chapter is quality improvements or practices that the United States Code, to permit former amended by adding after the item relating to State determines will provide water quality members of the Armed Forces who section 1060a the following new item: benefits. have a service-connected disability ‘‘1060b. Travel on military aircraft: certain ‘‘(3) VOLUNTARY PARTICIPATION.—The par- disabled former members of the ticipation of an eligible recipient in the rated as total to travel on military air- armed forces.’’. water quality improvements or practices craft in the same manner and to the shall be voluntary.’’. same extent as retired members of the By Mr. INOUYE: SEC. 5. CONFORMING AMENDMENTS. Armed Forces are entitled to travel on Section 601(a) of the Federal Water Pollu- such aircraft; to the Committee on S. 191. A bill to require the Secretary tion Control Act (33 U.S.C. 1381(a)) is Armed Services. of the Army to determine the validity of the claims of certain Filipinos that amended— ON TRAVEL ON MILITARY AIRCRAFT BY VETER- (1) by striking ‘‘and (3)’’ and inserting ANS WITH SERVICE-CONNECTED DISABILITIES they performed military service on be- ‘‘(3)’’; and Mr. INOUYE. Mr. President, today I half of the United States during World (2) by inserting before the period at the end rise to introduce a bill which is of War II; to the Committee on Armed the following: ‘‘, and (4) for construction of Services. water conservation and quality improve- great importance to a group of patri- ments by eligible recipients under sub- otic Americans. This legislation is de- FILIPINO VETERANS sections (i) and (j) of section 603’’. signed to extend space-available travel Mr. INOUYE. Mr. President, I rise privileges on military aircraft to those today to introduce legislation that By Mr. INOUYE: who have been completely disabled in would direct the Secretary of the Army S. 189. A bill to restore the tradi- the service of our country. to determine whether certain nationals tional day of observance of Memorial Currently, retired members of the of the Philippine Islands performed Day; to the Committee on the Judici- Armed Forces are permitted to travel military service on behalf of the ary. on a space-available basis on non- United States during World War II. MEMORIAL DAY scheduled military flights within the Mr. President, our Filipino veterans Mr. INOUYE. Mr. President, in our continental United States and on fought side by side and sacrificed their effort to accommodate many Ameri- scheduled overseas flights operated by lives on behalf of the United States. cans by making the last Monday in the Military Airlift Command. My bill This legislation would confirm the va- May, Memorial Day, we have lost sight would provide the same benefits for 100 lidity of their claims and further allow of the significance of this day to our percent service-connected disabled vet- qualified individuals the opportunity nation. Instead of using Memorial Day erans. to apply for military and veterans ben- as a time to honor and reflect on the Surely, we owe these heroic men and efits to which, I believe, they are enti- sacrifices made by Americans in com- women, who have given so much to our tled. As this population becomes older, bat, many Americans use the day as a country, a debt of gratitude. Of course, it is important for our nation to extend celebration of the beginning of sum- we can never repay them for the sac- its firm commitment to the Filipino mer. My bill would restore Memorial rifice they have made on behalf of our veterans and their families who par- Day to May 30 and authorize our flag to nation, but we can surely try to make ticipated in making us the great nation fly at half mast on that day. In addi- their lives more pleasant and fulfilling. we are today. S622 CONGRESSIONAL RECORD — SENATE January 19, 1999

I ask unanimous consent that the SKI, Mr. AKAKA, Mr. ers, home health care aides and cloth- text of my bill be printed in the WELLSTONE, Mrs. FEINSTEIN, ing store workers. They care for vast RECORD. Mrs. BOXER, Mrs. MURRAY, Mr. numbers of elderly Americans in nurs- There being no objection, the bill was FEINGOLD, Mr. WYDEN, Mr. DUR- ing homes. They stock shelves in the ordered to be printed in the RECORD, as BIN, Mr. TORRICELLI, Mr. REED, corner store. They mop the floors and follows: and Mr. SCHUMER): empty the trash in thousands of office S. 191 S. 192. A bill to amend the Fair Labor buildings in communities across the Be it enacted by the Senate and House of Rep- Standards Act of 1938 to increase the country. resentatives of the United States of America in Federal minimum wage; to the Com- Three-fifths of these workers are the Congress assembled, mittee on Health, Education, Labor, sole breadwinners in their families. SECTION 1. DETERMINATIONS BY THE SEC- and Pensions. More than half work full time. These RETARY OF THE ARMY. THE FAIR MINIMUM WAGE ACT OF 1999 families need help. They work hard and (a) IN GENERAL.—Upon the written applica- Mr. KENNEDY. Mr. President, it is they should be treated with dignity. tion of any person who is a national of the an honor to join with Senator DASCHLE They deserve this increase in the mini- Philippine Islands, the Secretary of the mum wage. Army shall determine whether such person and other Democratic Senators to in- performed any military service in the Phil- troduce the Fair Minimum Wage Act of Opponents typically claim that, if ippine Islands in aid of the Armed Forces of 1999. This proposal is strongly sup- the minimum wage goes up, the sky the United States during World War II which ported by President Clinton, and is also will fall—small businesses will collapse qualifies such person to receive any mili- being introduced today in the House of and jobs will be lost. This hasn’t hap- tary, veterans’, or other benefits under the Representatives by Congressman DAVID pened in the past, and it won’t happen laws of the United States. BONIOR, Democratic Leader RICHARD in the future. In fact, in the time that (b) INFORMATION TO BE CONSIDERED.—In GEPHARDT, and many of their col- has passed since the most recent in- making a determination for the purpose of creases in the federal minimum wage— subsection (a), the Secretary shall consider leagues. all information and evidence (relating to The federal minimum wage is now a 50-cent increase on October 1, 1996 service referred to in subsection (a)) avail- $5.15 an hour. Our bill will raise it by and a 40-cent increase on September 1, able to the Secretary, including information $1.00 over the next two years—a 50 cent 1997—employment has increased in all and evidence submitted by the applicant, if increase on September 1, 1999, and an- sectors of the population. any. other 50 cent increase on September 1, The American people understand SEC. 2. CERTIFICATE OF SERVICE. 2000, so that the minimum wage will that you can’t raise a family on $5.15 (a) ISSUANCE OF CERTIFICATE OF SERVICE.— reach the level of $6.15 by the turn of an hour. This issue is of vital impor- The Secretary shall issue a certificate of the century. tance to working families across the service to each person determined by the These modest increases will help 20 country. In the past election, for exam- Secretary to have performed military service million workers and their families. ple, by a margin of 2 to 1, voters in the described in section 1(a). Twelve million Americans earning less (b) EFFECT OF CERTIFICATE OF SERVICE.—A State of Washington approved a ballot certificate of service issued to any person than $6.15 an hour today will see a di- initiative to increase the state mini- under subsection (a) shall, for the purpose of rect increase in their pay, and another mum wage to $6.50 an hour. In many any law of the United States, conclusively 8 million Americans earning between other states, raising the minimum establish the period, nature, and character of $6.15 and $7.15 an hour are also likely to wage was a potent issue in the election. the military service described in the certifi- benefit from the increase. The minimum wage is a women’s cate. To have the purchasing power it had issue. It is a children’s issue. It is a SEC. 3. APPLICATIONS BY SURVIVORS. in 1968, the minimum wage should be at civil rights issue. It is a labor issue. It An application submitted by a surviving least $7.45 an hour today, instead of the is a family issue. Above all, it is a fair- spouse, child, or parent of a deceased person current level of $5.15. The gap shows ness issue and a dignity issue. I intend described in section 1(a) shall be treated as how far we have fallen short in giving an application submitted by such person. to do all I can to see that the minimum low income workers their fair share of wage is increased this year. No one who SEC. 4. LIMITATION PERIOD. our extraordinary economic prosperity. The Secretary may not consider for the works for a living should have to live purpose of this Act any application received Since 1968, the stock market, adjusted in poverty. by the Secretary more than two years after for inflation, has gone up by over 150 I ask consent that the text of the bill the date of enactment of this Act. percent—while the purchasing power of be printed in the RECORD. SEC. 5. PROSPECTIVE APPLICATION OF DETER- the minimum wage has gone down by There being no objection, the bill was MINATIONS BY THE SECRETARY OF 30 percent. ordered to be printed in the RECORD, as THE ARMY. The nation’s economy is the best it follows: No benefits shall accrue to any person for has been in decades. Under the leader- S. 192 any period prior to the date of enactment of ship of President Clinton, the country this Act as a result of the enactment of this Be it enacted by the Senate and House of Rep- Act. as a whole is enjoying a remarkable pe- resentatives of the United States of America in riod of growth and prosperity. Enter- SEC. 6. REGULATIONS. Congress assembled, The Secretary shall issue regulations to prise and entrepreneurship are flour- SECTION 1. SHORT TITLE. carry out sections 1, 3, and 4. ishing—generating an unprecedented This Act may be cited as the ‘‘Fair Mini- SEC. 7. RESPONSIBILITIES OF THE SECRETARY expansion, with impressive efficiencies mum Wage Act of 1999’’. OF VETERANS AFFAIRS. and significant job creation. The stock SEC. 2. MINIMUM WAGE INCREASE. Any entitlement of a person to receive vet- market has soared. Inflation is low, un- (a) WAGE.—Paragraph (1) of section 6(a) of erans’ benefits by reason of this Act shall be employment is low, and interest rates the Fair Labor Standards Act of 1938 (29 administered by the Department of Veterans are low. U.S.C. 206(a)(1)) is amended to read as fol- Affairs pursuant to regulations issued by the But the benefits of this prosperity lows: Secretary of Veterans Affairs. have not flowed fairly to minimum ‘‘(1) except as otherwise provided in this SEC. 8. DEFINITIONS. wage earners. These workers can bare- section, not less than— In this Act: ‘‘(A) $5.65 an hour during the year begin- ly make ends meet. Working 40 hours a ning on September 1, 1999; and (1) The term ‘‘Secretary’’ means the Sec- week, 52 weeks a year, they earn $10,712 retary of the Army. ‘‘(B) $6.15 an hour beginning on September (2) The term ‘‘World War II’’ means the pe- a year—$2,900 below the poverty line 1, 2000;’’. riod beginning on December 7, 1941, and end- for a family of three. A full day’s work (b) EFFECTIVE DATE.—The amendment ing on December 31, 1946. should mean a fair day’s pay. But for made by subsection (a) takes effect on Sep- millions of Americans who earn the tember 1, 1999. By Mr. KENNEDY (for himself, minimum wage, it doesn’t. SEC. 3. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH OF THE Mr. DASCHLE, Mr. LEAHY, Mr. According to the Department of NORTHERN MARIANA ISLANDS. SARBANES, Mr. MOYNIHAN, Mr. Labor, 60% of minimum wage earners The provisions of section 6 of the Fair LEVIN, Mr. DODD, Mr. LAUTEN- are women. Nearly three-fourths are Labor Standards Act of 1938 (29 U.S.C. 206) BERG, Mr. BINGAMAN, Mr. adults. Minimum wage workers are shall apply to the Commonwealth of the KERRY, Mr. HARKIN, Ms. MIKUL- teacher’s aides and child care provid- Northern Mariana Islands. January 19, 1999 CONGRESSIONAL RECORD — SENATE S623 Mr. DODD. Mr. President, today I extend the research credit; to the Com- ployer plans from the annual income join a number of my colleagues in in- mittee on Finance. limits of Section 415 of the Internal troducing legislation to increase the RESEARCH AND EXPERIMENTATION TAX CREDIT Revenue Code. Current law sets pen- minimum wage. There is no better way sion compensation based on three con- to reward work than by ensuring each By Mrs. BOXER: secutive years of pay. However, for and every worker be paid a living wage. S. 196. A bill to amend the Internal workers whose income fluctuate from During the past three decades, the Revenue Code of 1986 to waive in the year-to-year, this requirement may purchasing power of the minimum case of multiemployer plans the sec- lower annual benefits. To ensure fair- wage has declined by 30 percent. Even tion 415 limit on benefits to the partici- ness for these workers, multi-employer after the modest minimum wage in- pant’s average compensation for his plans should be exempted from Section crease in 1996, a person working full- high 3 years; to the Committee on Fi- 415. time for the minimum wage earns only nance. Next is the Coastal States Protection $10,712 a year, nearly $3,000 below the PENSION IMPROVEMENT LEGISLATION Act, which will provide necessary pro- poverty level for a family of three. tection for the nation’s Outer Con- That paycheck must pay for food, By Mrs. BOXER: tinental Shelf (OCS) from the adverse housing, health care, child care, and S. 197. A bill to amend the Outer Con- effects of offshore oil and gas develop- transportation. It is time to reward tinental Shelf Lands Act to direct the ment by making management of the working families with living wages. Secretary of the Interior to cease min- federal OCS consistent with state-man- The legislation we are proposing eral leasing activity on the outer Con- dated protection of state waters. Sim- would provide a modest 50-cent per tinental Shelf seaward of a coastal ply put, my bill says that when a state hour increase this year, with an addi- State that has declared a moratorium establishes a drilling moratorium on tional 50-cent increase in 2000, bringing on mineral exploration, development, part or all of its coastal waters, that the wage level to $6.15 per hour. or production activity in State water; protection would be extended to adja- More than 10 million people would be to the Committee on Energy and Natu- cent federal waters. helped by a raise in the minimum ral Resources. The final bill is the Domestic Vio- wage—an increase of more than $2,000 COASTAL STATES PROTECTION ACT lence Identification and Referral Act, per year for a full-time worker. To put which would help ensure that medical things in context, nearly three quar- By Mrs. BOXER: professionals have the training they ters of minimum wage earners are S. 198. A bill to amend the Public need to recognize and treat domestic adults and 40 percent are the sole Health Service Act to provide for the violence, including spouse abuse, child breadwinners for their families. Sixty training of health professions students abuse, and elder abuse. The bill will percent of minimum wage workers are with respect to the identification and amend the Public Health Service Act women, and 82 percent of all minimum referral of victims of domestic vio- to require the Secretary of Health and wage earners work more than 20 hours lence; to the Committee on Health, Human Services to give preference in per week. Education, Labor, and Pensions. awarding grants to institutions that Since the last minimum wage in- DOMESTIC VIOLENCE IDENTIFICATION AND train health professionals in identify- crease, our nation’s economy has con- REFERRAL ACT OF 1999 ing, treating, and referring patients tinued to grow steadily. In my home Mrs. BOXER. Mr. President, I rise who are victims of domestic violence State of Connecticut, members of the today to introduce several important to appropriate services. State legislature saw the wisdom of in- bills that I hope the Senate will con- I ask that the text of the bills be creasing the minimum wage, and last sider early in the 106th Congress. printed in the RECORD. year enacted a two-step minimum wage The first bill is the American Hand- There being no objection, the bills increase. The current level is now $5.65, gun Standards Act. This legislation were ordered to be printed in the and effective January 1, 2000, the wage would require that handguns made in RECORD, as follow: will again increase to $6.15 an hour. the United States meet the same S. 193 Connecticut’s unemployment rate is 3.8 standards currently required of im- Be it enacted by the Senate and House of Rep- percent and almost 60,000 new jobs were ported handguns. This legislation resentatives of the United States of America in created in the last two years. The would halt the sale and manufacture of Congress assembled, State is close to recovering nearly all new ‘‘junk guns,’’ which have been SECTION 1. SHORT TITLE. of the 156,000 jobs lost during the reces- found by criminologists to be dis- This Act may be cited as the ‘‘American sion that hit in the early 1990’s. proportionately used in crimes. Handgun Standards Act of 1999’’. I hope that Congress will follow Con- The next bill is the Health Insurance SEC. 2. FINDINGS. necticut’s lead and pass a similar law Tax Deduction. This important legisla- Congress finds that— before the year is through. Congress tion would make the costs of health in- (1) the Gun Control Act of 1968 prohibited should take a stand for millions of surance tax deductible for individuals the importation of handguns that failed to working Americans and raise the mini- who purchase their own health cov- meet minimum quality and safety standards; mum wage. (2) the Gun Control Act of 1968 did not im- erage—up to a maximum of $2,000 per pose any quality and safety standards on do- year. Currently health care costs are mestically produced handguns; By Mrs. BOXER: only deductible for corporations and S. 193. A bill to apply the same qual- (3) domestically produced handguns are the self-employed. Current law clearly specifically exempted from oversight by the ity and safety standards to domesti- discriminates against individuals and Consumer Product Safety Commission and cally manufactured handguns that are should be changed. are not required to meet any quality and currently applied to imported hand- Also included is legislation to make safety standards; guns; to the Committee on the Judici- the Research and Experimentation Tax (4) each year— ary. Credit permanent. Virtually all econo- (A) gunshots kill more than 35,000 Ameri- AMERICAN HANDGUN STANDARDS ACT OF 1999 cans and wound approximately 250,000; mists agree that the R&E Tax Credit is (B) approximately 75,000 Americans are a valuable incentive that encourages hospitalized for the treatment of gunshot By Mrs. BOXER: high-tech companies to develop innova- wounds; S. 194. A bill to amend the Internal tive products. In the past, however, the (C) Americans spend more than $20 billion Revenue Code of 1986 to allow the first credit has been enacted intermittently for the medical treatment of gunshot $2,000 of health insurance premiums to and only for very limited periods of wounds; and be fully deductible; to the Committee time. The on-again, off-again nature of (D) gun violence costs the United States on Finance. the R&E Tax Credit makes it very dif- economy a total of $135 billion; HEALTH INSURANCE TAX RELIEF ACT (5) the disparate treatment of imported ficult for companies to plan long-term handguns and domestically produced hand- research projects. It should be made guns has led to the creation of a high-volume By Mrs. BOXER: permanent. market for junk guns, defined as those hand- S. 195. A bill to amend the Internal The next will would improve our pen- guns that fail to meet the quality and safety Revenue Code of 1986 to permanently sion system by exempting multi-em- standards required of imported handguns; S624 CONGRESSIONAL RECORD — SENATE January 19, 1999

(6) traffic in junk guns constitutes a seri- (b) DEDUCTION ALLOWED WHETHER OR NOT order of the Governor, the Secretary shall ous threat to public welfare and to law en- TAXPAYER ITEMIZES DEDUCTION.—Section not issue a lease for the exploration, develop- forcement officers; 62(a) of the Internal Revenue Code of 1986 ment, or production of minerals on the outer (7) junk guns are used disproportionately (defining adjusted gross income) is amended Continental Shelf that is seaward of or adja- in the commission of crimes; and by inserting after paragraph (17) the follow- cent to that land.’’. (8) the domestic manufacture, transfer, and ing new paragraph: possession of junk guns should be restricted. ‘‘(18) HEALTH INSURANCE PREMIUMS.—The S. 198 SEC. 3. DEFINITION OF JUNK GUN. deduction allowed by section 213(a)(2).’’ Be it enacted by the Senate and House of Rep- Section 921(a) of title 18, United States (c) CONFORMING AMENDMENT.—Section resentatives of the United States of America in Code, is amended by adding at the end the 162(l)(1)(A) of the Internal Revenue Code of Congress assembled, following: 1986 (relating to special rules for health in- SECTION 1. SHORT TITLE. ‘‘(35) The term ‘junk gun’ means any hand- surance costs of self-employed individuals) is This Act may be cited as the ‘‘Domestic gun that does not meet the standard imposed amended to read as follows: Violence Identification and Referral Act of on imported handguns as described in section ‘‘(A) IN GENERAL.—In the case of an indi- 1999’’. 925(d)(3), and any regulations issued under vidual who is an employee within the mean- such section.’’. ing of section 401(c)(1), there shall be allowed SEC. 2. ESTABLISHMENT, FOR CERTAIN HEALTH PROFESSIONS PROGRAMS, OF PRO- SEC. 4. RESTRICTION ON MANUFACTURE, TRANS- as a deduction under this section an amount VISIONS REGARDING DOMESTIC VIO- FER, AND POSSESSION OF CERTAIN equal to the sum of— LENCE. HANDGUNS. ‘‘(i) so much of the amount paid during the (a) TITLE VII PROGRAMS; PREFERENCES IN Section 922 of title 18, United States Code, taxable year for insurance which constitutes FINANCIAL AWARDS.—Section 791 of the Pub- is amended by inserting after subsection (y) medical care for the taxpayer, his spouse, lic Health Service Act (42 U.S.C. 295j) is the following: and dependents as does not exceed $2,000, amended by adding at the end the following: ‘‘(z)(1) Subject to paragraph (2), it shall be plus unlawful for a person to manufacture, trans- ‘‘(c) PREFERENCES REGARDING TRAINING IN ‘‘(ii) the applicable percentage of the IDENTIFICATION AND REFERRAL OF VICTIMS OF fer, or possess a junk gun that has been amount so paid in excess of $2,000.’’ shipped or transported in interstate or for- DOMESTIC VIOLENCE.— (d) EFFECTIVE DATE.—The amendments ‘‘(1) IN GENERAL.—In the case of a health eign commerce. made by this section shall apply to taxable ‘‘(2) Paragraph (1) does not apply to— professions entity specified in paragraph (2), years beginning after December 31, 1999. ‘‘(A) the possession or transfer of a junk the Secretary shall, in making awards of gun otherwise lawfully possessed under Fed- grants or contracts under this title, give S. 195 eral law on the date of the enactment of the preference to any such entity (if otherwise a American Handgun Standards Act of 1999; Be it enacted by the Senate and House of Rep- qualified applicant for the award involved) ‘‘(B) a firearm or replica of a firearm that resentatives of the United States of America in that has in effect the requirement that, as a has been rendered permanently inoperative; Congress assembled, condition of receiving a degree or certificate ‘‘(C)(i) the manufacture for, transfer to, or SECTION 1. PERMANENT EXTENSION OF RE- (as applicable) from the entity, each student possession by, the United States or a State SEARCH CREDIT. have had significant training in carrying out or a department or agency of the United (a) IN GENERAL.—Section 41 of the Internal the following functions as a provider of States, or a State of a department, agency, Revenue Code of 1986 (relating to credit for health care: or political subdivision of a State, of a junk increasing research activities) is amended by ‘‘(A) Identifying victims of domestic vio- gun; or striking subsection (h). lence, and maintaining complete medical ‘‘(ii) the transfer to, or possession by, a law (b) CONFORMING AMENDMENT.—Paragraph records that include documentation of the enforcement officer employed by an entity (1) of section 45C(b) of such Code is amended examination, treatment given, and referrals referred to in clause (i) of a junk gun for law by striking subparagraph (D). made, and recording the location and nature enforcement purposes (whether on or off- (c) EFFECTIVE DATE.—The amendments of the victim’s injuries. duty); made by this section shall apply to amounts ‘‘(B) Examining and treating such victims, ‘‘(D) the transfer to, or possession by, a paid or incurred after June 30, 1999. within the scope of the health professional’s rail police officer employed by a rail carrier discipline, training, and practice, including, and certified or commissioned as a police of- S. 196 at a minimum, providing medical advice re- ficer under the laws of a State of a junk gun Be it enacted by the Senate and House of Rep- garding the dynamics and nature of domestic for the purposes of law enforcement (whether resentatives of the United States of America in violence. on or off-duty); or Congress assembled, ‘‘(C) Referring the victims to public and nonprofit private entities that provide serv- ‘‘(E) the manufacture, transfer, or posses- SECTION 1. TREATMENT OF MULTIEMPLOYER sion of a junk gun by a licensed manufac- PLANS UNDER SECTION 415 LIMIT ices for such victims. turer or licensed importer for the purposes of ON BENEFITS. ‘‘(2) RELEVANT HEALTH PROFESSIONS ENTI- testing or experimentation authorized by the (a) IN GENERAL.—Paragraph (11) of section TIES.—For purposes of paragraph (1), a health Secretary.’’. 415(b) of the Internal Revenue Code of 1986 professions entity specified in this paragraph (relating to special limitation rule for gov- is any entity that is a school of medicine, a S. 194 ernmental plans) is amended— school of osteopathic medicine, a graduate Be it enacted by the Senate and House of Rep- (1) in the heading, by inserting ‘‘AND MUL- program in mental health practice, a school resentatives of the United States of America in TIEMPLOYER PLANS’’ after ‘‘GOVERNMENTAL of nursing (as defined in section 853), a pro- Congress assembled, PLANS’’; and gram for the training of physician assist- SECTION 1. SHORT TITLE. (2) by inserting ‘‘or a multiemployer plan ants, or a program for the training of allied This Act may be cited as the ‘‘Health In- (as defined in section 414(f))’’ after ‘‘govern- health professionals. surance Tax Relief Act’’. mental plan (as defined in section 414(d))’’. ‘‘(3) REPORT TO CONGRESS.—Not later than 2 SEC. 2. FIRST $2,000 OF HEALTH INSURANCE PRE- (b) EFFECTIVE DATE.—The amendments years after the date of the enactment of the MIUMS FULLY DEDUCTIBLE. made by this section shall apply to plan Domestic Violence Identification and Refer- (a) IN GENERAL.—Subsection (a) of section years beginning after December 31, 1999. ral Act of 1999, the Secretary shall submit to 213 of the Internal Revenue Code of 1986 (re- the Committee on Commerce of the House of lating to medical, dental, etc., expenses) is S. 197 Representatives, and the Committee on amended to read as follows: Labor and Human Resources of the Senate, a Be it enacted by the Senate and House of Rep- ‘‘(a) ALLOWANCE OF DEDUCTION.—There report specifying the health professions enti- shall be allowed as a deduction the following resentatives of the United States of America in ties that are receiving preference under amounts not compensated for by insurance Congress assembled, paragraph (1); the number of hours of train- or otherwise— SECTION 1. SHORT TITLE. ing required by the entities for purposes of ‘‘(1) the amount by which the amount of This Act may be cited as the ‘‘Coastal such paragraph; the extent of clinical experi- expenses paid during the taxable year (re- States Protection Act’’. ence so required; and the types of courses duced by the amount deductible under para- SEC. 2. STATE MORATORIA ON OFFSHORE MIN- through which the training is being pro- graph (2)) for medical care of the taxpayer, ERAL LEASING. vided. the taxpayer’s spouse, and the taxpayer’s de- Section 8 of the Outer Continental Shelf ‘‘(4) DEFINITIONS.—For purposes of this sub- pendents (as defined in section 152) exceeds Lands Act (43 U.S.C. 1337) is amended by add- section, the term ‘domestic violence’ in- 7.5 percent of adjusted gross income, plus ing at the end the following: cludes behavior commonly referred to as do- ‘‘(2) so much of the expenses paid during ‘‘(p) STATE MORATORIA.—When there is in mestic violence, sexual assault, spousal the taxable year for insurance which con- effect with respect to land beneath navigable abuse, woman battering, partner abuse, child stitutes medical care under subsection water (as defined in section 2 of the Sub- abuse, elder abuse, and acquaintance rape.’’. (d)(1)(D) (other than for a qualified long- merged Lands Act (16 U.S.C. 1301)) of a coast- (b) TITLE VIII PROGRAMS; PREFERENCES IN term care insurance contract) for such tax- al State a moratorium on oil, gas, or other FINANCIAL AWARDS.—Section 806 of the Pub- payer, spouse, and dependents as does not ex- mineral exploration, development, or pro- lic Health Service Act is amended by adding ceed $2,000.’’ duction activity established by statute or by at the end the following: January 19, 1999 CONGRESSIONAL RECORD — SENATE S625 ‘‘(i) PREFERENCES REGARDING TRAINING IN phisticated as medical care available in NET OPERATING LOSSES FOR FARMERS IDENTIFICATION AND REFERRAL OF VICTIMS OF the United States. Mr. HARKIN. Mr. President, today, I DOMESTIC VIOLENCE.— Although Vova’s cancer has gone am introducing legislation for myself ‘‘(1) IN GENERAL.—In the case of a health into remission because of the excellent and Senator JOHNSON providing farm- professions entity specified in paragraph (2), health care he has received, the seven ers with the option of receiving a re- the Secretary shall, in making awards of grants or contracts under this title, give other children who came to the United fund from taxes paid in the past 10 preference to any such entity (if otherwise a States with Vova were not as fortu- years for their current operating qualified applicant for the award involved) nate. They returned to the Ukraine and losses. that has in effect the requirement that, as a they died, one by one, because of inad- I was pleased to see a net operating condition of receiving a degree or certificate equate cancer treatment. Not one child loss provision included in the Omnibus (as applicable) from the entity, each student survived. Appropriations measure allowing farm- have had significant training in carrying out Because of his perilous medical con- ers to carry back their losses for 5 the following functions as a provider of dition, Vova and his family have done years. But, a five year period is insuffi- health care: everything possible to remain in the cient given the economic reality in Ag- ‘‘(A) Identifying victims of domestic vio- riculture. lence, and maintaining complete medical United States. Since 1992, they have obtained a number of visa extensions, Farmers are suffering huge losses records that include documentation of the through no fault of their own. No other examination, treatment given, and referrals and I have helped them with their ef- made, and recording the location and nature forts. In March of 1997, the last time business has less control of the price of the victim’s injuries. the Malofienkos’ visas were expiring, I they can recieive for what they produce. Farmers cannot control the ‘‘(B) Examining and treating such victims, appealed to the INS and the family was world’s weather or the World economy. within the scope of the health professional’s given what I was told would be final discipline, training, and practice, including, But, those factors determine the price one-year extension. at a minimum, providing medical advice re- of corn, soybeans and wheat. The Free- garding the dynamics and nature of domestic Across the country, people have ral- lied in support of Vova’s cause. The dom to Farm bill passed in 1997 sharply violence. reduced the farmer’s safety net. Farm Children of Chernobyl Relief Fund, na- ‘‘(C) Referring the victims to public and prices have crashed to levels not seen nonprofit private entities that provide serv- tional Ukrainian and religious organi- in decades. Many farmers are going to ices for such victims. zations, and Vova’s classmates at have a very difficult time being able to ‘‘(2) RELEVANT HEALTH PROFESSIONS ENTI- Millburn Middle School have all acquire the funds needed to plant their TIES.—For purposes of paragraph (1), a health worked to help the Malofienkos. professions entity specified in this paragraph During the last session of Congress, I crops in the coming year or maintain is any entity that is a school of nursing or introduced legislation to help Vova and their annual operations. Grain farmers other public or nonprofit private entity that received some assistance in the Omni- his family. With the help of Senators is eligible to receive an award described in bus Appropriations measure. But, it ABRAHAM, HATCH, and DASCHLE, the such paragraph. was not sufficient. Livestock producers Senate passed the bill unanimously. ‘‘(3) REPORT TO CONGRESS.—Not later than 2 received very limited help in that years after the date of the enactment of the However, the House failed to pass it be- measure. And, in the last few months Domestic Violence Identification and Refer- fore the end of the last session. ral Act of 1999, the Secretary shall submit to I hope that my Senate colleagues will we have seen hog prices drop to levels that were, adjusted for inflation, far the Committee on Commerce of the House of help move this legislation forward ex- lower than anything seen at the worst Representatives, and the Committee on peditiously. We must give Vova and his Labor and Human Resources of the Senate, a point of the Great Depression. Many family a chance to live their lives in report specifying the health professions enti- farmers could lose the farms that have ties that are receiving preference under peace. I ask unanimous consent that the bill been in their families for generations. paragraph (1); the number of hours of train- Those low prices and the resulting be printed in the RECORD. ing required by the entities for purposes of sharp reduction in hog producers’ fi- such paragraph; the extent of clinical experi- There being no objection, the bill was nancial resources is changing the ence so required; and the types of courses ordered to be printed in the RECORD, as through which the training is being pro- follows: whole structure of hog production. Cat- tle prices also have been significantly vided. S. 199 ‘‘(4) DEFINITIONS.—For purposes of this sub- below the cost of production for over a Be it enacted by the Senate and House of Rep- section, the term ‘domestic violence’ in- year. And, the economic difficulty is resentatives of the United States of America in cludes behavior commonly referred to as do- Congress assembled, far broader. It is already having a ter- mestic violence, sexual assault, spousal SECTION 1. PERMANENT RESIDENCE. rible ripple effect on the economies of abuse, woman battering, partner abuse, child rural areas. Layoffs have been occur- abuse, elder abuse, and acquaintance rape.’’. Notwithstanding any other provision of law, for purposes of the Immigration and Na- ring at agricultural equipment manu- By Mr. LAUTENBERG (for him- tionality Act (8 U.S.C. 1101 et seq.), facturers and in stores of all kinds in Alexandre Malofienko, Olga Matsko, and small towns across the country. We are self and Mr. TORRICELLI): their son, Vladimir Malofienko, shall be held S. 199. A bill for the relief of just at the beginning stages of what and considered to have been lawfully admit- could become a very severe downturn Alexandre Malofienko, Olga Matsko, ted to the United States for permanent resi- and their son, Vladimir Malofienko; to in rural America. dence as of the date of the enactment of this A number of Senators and I are pro- the Committee on the Judiciary. Act upon payment of the required visa fees. posing a series of modifications in SEC. 2. REDUCTION OF NUMBER OF AVAILABLE PRIVATE RELIEF BILL agicultural programs to help alleviate Mr. LAUTENBERG. Mr. President, I VISAS. Upon the granting of permanent residence these programs. But, I believe the Con- rise today to introduce legislation that to Alexandre Malofienko, Olga Matsko, and gress needs to also pass a provision will help my constituent Vova their son, Vladimir Malofienko, as provided broadening existing law allowing farm- Malofienko, and his parents, to live a in section 1, the Secretary of State shall in- ers to recover taxes paid in the past to healthy and productive life in the struct the proper officer to reduce by the ap- cover their net operating losses for 10 United States. propriate number during the current fiscal years. Tragically, Vova was a victim of the year the total number of immigrant visas I propose that the option to carry Chernobyl reactor explosion. He has available to natives of the country of the losses back for 10 years only apply to battled Leukemia his whole life. Since aliens’ birth under section 203(a) of the Im- migration and Nationality Act (8 U.S.C. family farmers. That would include his arrival in the United States for 1153(a)). those with gross sales of less than $7 cancer treatment in 1992, he and his million and the losses covered would be parents have sought to remain here be- By Mr. HARKIN (for himself and up to $200,000 per year in operating cause the air, food, and water in the Mr. JOHNSON): losses. The benefit would only go to Ukraine are still contaminated with S. 200. A bill to amend the Internal farmers whose families are actively en- radiation and are perilous to those like Revenue Code of 1986 to increase the gaged in farming and whose business Vova who have a weakened immune years for carryback of net operating activity is mostly farming. The system. Additionally, cancer treatment losses for certain farm losses; to the amount of the rebate would be depend- available in the Ukraine is not as so- Committee on Finance. ent on the amount of the loss and the S626 CONGRESSIONAL RECORD — SENATE January 19, 1999 tax rate paid by the farmer for the paid Yet, even with the success of the Due to this legislation, Americans taxes that are being restored. FMLA there is still more work to be now possess greater opportunities to The 10 year provision would only done. keep their health benefits, maintain cover losses occurring in 1998 to 1999. Millions of Americans are not cov- job security, and take longer leaves for For losses occuring in 1998, farmers ered by the Family and Medical Leave a greater number of reasons. would be able to calculate their loss Act and continue to face painful In fact, according to the bipartisan now and seek an immediate rebate choices involving their competing re- Commission—12 million workers took from the IRS for the taxes paid in ear- sponsibilities to family and work. job-protected leave for reasons covered lier years. In fact, over one-quarter of working by the Family and Medical Leave Act Current law already allows a few tax- Americans needed to take family and during the 18 months of its study. payers in certain circumstances to go medical leave in 1998 but were unable Not only are American workers reap- back and recover taxes that they paid to do so. Forty-four percent of these ing the benefits. The law is working for for 10 years. I believe that it should be Americans did not take the leave they American business as well. broadened to cover farmers in this dif- needed because they would have lost The conclusions of the bipartisan re- ficult time. In fact, there is a precedent their jobs or their employers do not port are a far cry from the concerns in the 1997 Taxpayer Relief Act in allow it. that were voiced when this law was which Amtrak was allowed to use net Today, forty-three percent of private being considered in Congress. operating losses of their predecessor sector employees remain unprotected The vast majority of businesses— railroads from over 25 years in the by the FMLA because their employer over 94%—report little to no additional past. does not meet the current 50 or more costs associated with the Family and I urge that when the Congress consid- employee threshold. Medical Leave Act. More than 92% re- ers a tax bill, this provision be consid- The legislation I introduce today— ported no noticeable effect on profit- ered and passed. the Family and Medical Leave Fairness ability. And nearly 96% reported no no- Act of 1999—will extend the Family and ticeable effect on business growth. Ad- By Mr. DODD (for himself, Mr. Medical Leave Act to millions of Amer- ditionally, 83% of employers reported DASCHLE, Mr. KENNEDY, Mrs. icans who remain uncovered. I am no noticeable impact on employee pro- MURRAY, Ms. MIKULSKI, Mr. pleased to be joined in this effort by ductivity. In fact, 12.6% actually re- HARKIN, Mr. KERRY, Mr. AKAKA, Senators DASCHLE, KENNEDY, MURRAY, ported a positive effect on employee Mrs. BOXER, and Mr. MIKULSKI, HARKIN, KERRY, AKAKA, and productivity from the Family and Med- WELLSTONE): BOXER. ical Leave Act, twice as many as re- S. 201. A bill to amend the Family This bill would lower the threshold ported a negative effect. and Medical Leave Act of 1993 to apply to include coverage for companies with And not only did employers report the Act to a greater percentage of the 25 or more workers. that compliance with the FMLA was United States workforce, and for other This small step would provide 13 mil- relatively easy and of minimal cost, purposes; to the Committee on Health, lion additional workers with protection but work sites with a small number of Education, Labor, and Pensions. of the Family and Medical Leave Act— employees generally reported greater THE FAMILY AND MEDICAL LEAVE FAIRNESS ACT raising the total percentage of the pri- ease of administration and even small- OF 1999 vate sector workforce covered by the er costs than large work sites. Mr. DODD. Mr. President, six years FMLA to 71 percent. Today, I introduce this legislation ago, I came to the floor of the U.S. In my view, these workers deserve with the hope and expectation that we Senate to introduce the Family and the same job security in times of fam- can put aside our political differences Medical Leave Act. That introduction ily and medical emergency that work- and build on the success of the Family and the signing of the bill into law a ers in larger companies receive from and Medical Leave Act. few weeks later by President Clinton the Family and Medical Leave Act. Last November, the American people was the culmination of an eight-year With this legislation they will re- gave us mandate—a mandate for good struggle to make job-protected leave ceive it. governance. The Family and Medical accessible for working Americans, in Now, for those of my colleagues who Leave Act represents the fulfillment of times of family or medical emergency. still harbor doubts about the success of this goal and I urge all my colleagues Today, at a time when many Ameri- the Family and Medical Leave Act, I to join with me in supporting this cans are deeply cynical toward the strongly urge them to examine the bi- critically important legislation for work we do here in Washington, the partisan Commission of Leave report America’s working families. Family and Medical Leave Act stands and other studies that documents the Mr. President, I ask unanimous con- in sharp contrast. positive impact of this legislation. sent that the text of the bill be printed It responded to a deep and genuine When the bill was passed in 1993, pro- in the RECORD. need among American Families. Over visions in the legislation established a There being no objection, the bill was the last six years, I have heard from commission to examine the impact of ordered to be printed in the RECORD, as many working Americans about what the act on workers and businesses. follows: this law has meant to them. But no The Family and Medical Leave Com- S. 201 story captures the impact of our work mission’s analysis spanned two and a Be it enacted by the Senate and House of Rep- better than the one expectant mother I half years. It included independent re- resentatives of the United States of America in heard from who kept a copy of the search and field hearings across the Congress assembled, Family and Medical Leave Act in her country to learn first hand about the SECTION 1. SHORT TITLE. bedside table. She had a difficult preg- act’s impact from individuals and the This Act may cited as the ‘‘Family and nancy and was often on doctor-ordered business community. Medical Leave Fairness Act of 1999’’. bed rest; she said she kept the FMLA The report’s conclusions are clear— SEC. 2. FINDINGS. nearby and read it as reassurance that the Family and Medical Leave Act is Congress finds that— (1) the Family and Medical Leave Act of she wouldn’t lose her job or her health helping to expand opportunities for 1993 (29 U.S.C. 2601 et seq.) has provided em- insurance. working Americans while at the same ployees with a significant new tool in bal- The Family and Medical Leave Act time not placing any undue burden on ancing the needs of their families with the has been a lifeline for tens of millions employers. demands of work; of families as they have responded at According to the Commission’s final (2) the Family and Medical Leave Act of those key moments that define a fam- report, the Family and Medical Leave 1993 has had a minimal impact on business, ily—when there is a new child or when Act represents ‘‘A significant step in and over 90 percent of private employers cov- serious illness strikes. With the FMLA, helping a larger cross-section of work- ered by the Act experienced little or no cost and a minimal, or positive, impact on pro- working Americans can take 12 weeks ing Americans meet their medical and ductivity as a result of the Act; off to cope with these basic family family care giving needs while still (3) although both employers at workplaces needs without worry that they will lose maintaining their jobs and economic with large numbers of employees and em- their jobs or their health insurance. security.’’ ployers at workplaces with small numbers of January 19, 1999 CONGRESSIONAL RECORD — SENATE S627 employees reported that compliance with miums from the beneficiaries them- TITLE II—ACCESS TO MEDICARE BENE- the Family and Medical Leave Act of 1993 in- selves. There is a modest cost to the FITS FOR DISPLACED WORKERS 55-TO- volved very easy administration and low 62 YEARS OF AGE buy-in proposal for 62–65-year-olds be- costs, the smaller employers found it easier Sec. 201. Access to medicare benefits for and less expensive to comply with the Act cause participants would pay the pre- displaced workers 55-to-62 years of age. than the larger employers; mium in two parts: most of the cost TITLE III—COBRA PROTECTION FOR (4) over three-quarters of worksites with would be paid by the individual up EARLY RETIREES under 50 employees covered by the Family front and a smaller amount would be and Medical Leave Act of 1993 report no cost Subtitle A—Amendments to the Employee increases or small cost increases associated paid after they turn 65 years-old. Medi- Retirement Income Security Act of 1974 with compliance with the Act; care would in effect ‘‘loan’’ partici- Sec. 301. COBRA continuation benefits for (5) in 1998, 27 percent of Americans needed pants the second part of the premium certain retired workers who lose re- to take family or medical leave but were un- until they reach 65, when they would tiree health coverage. able to do so, and 44 percent of these employ- Subtitle B—Amendments to the Public ees did not take such leave because they make small monthly payments in addi- Health Service Act would have lost their jobs or their employers tion to their regular Medicare Part B Sec. 311. COBRA continuation benefits for did not allow it; premium. The financing of the program certain retired workers who lose re- (6) only 57 percent of the private workforce is carefully walled off from the Medi- tiree health coverage. is currently protected by the Family and care Part A and Part B Trust Funds, to Subtitle C—Amendments to the Internal Medical Leave Act of 1993; and Revenue Code of 1986 (7) 13,000,000 more private employees, or an ensure that it will not adversely im- additional 14 percent of the private work- pact the existing program. Sec. 321. COBRA continuation benefits for certain retired workers who lose re- force, would be protected by the Family and In 1998, the Congressional Budget Of- Medical Leave Act of 1993 if the Act was ex- tiree health coverage. panded to cover private employers with 25 or fice (CBO) analysis of this bill found no TITLE I—ACCESS TO MEDICARE BENEFITS more employees. impact on the Medicare Part A or Part FOR INDIVIDUALS 62-TO-65 YEARS OF AGE SEC. 3. COVERAGE OF EMPLOYEES. B Trust Funds. CBO also predicted that SEC. 101. ACCESS TO MEDICARE BENEFITS FOR Paragraphs (2)(B)(ii) and (4)(A)(i) of section about 410,000 individuals would partici- INDIVIDUALS 62-TO-65 YEARS OF AGE. 101 of the Family and Medical Leave Act of pate (or 33 percent more than first esti- 1993 (29 U.S.C. 2611(2)(B)(ii) and (4)(A)(i)) are (a) IN GENERAL.—Title XVIII of the Social amended by striking ‘‘50’’ each place it ap- mated by the Administration). Finally, Security Act is amended— pears and inserting ‘‘25’’. CBO estimated that the post-65 pre- (1) by redesignating section 1859 and part D mium that people ages 62-65 would pay as section 1858 and part E, respectively; and By Mr. MOYNIHAN (for himself, (2) by inserting after such section the fol- would be only $10 per month per year— lowing new part: Mr. KENNEDY, and Mr. $6 per month, or $72 less per year, than ‘‘PART D—PURCHASE OF MEDICARE BENEFITS DASCHLE): the Administration estimated. S. 202. A bill to amend title XVIII of BY CERTAIN INDIVIDUALS AGE 62-TO-65 YEARS OF AGE the Social Security Act and the Em- Mr. President, the problem of health ployee Retirement Income Security insurance for the near elderly is get- ‘‘SEC. 1859. PROGRAM BENEFITS; ELIGIBILITY. ‘‘(a) ENTITLEMENT TO MEDICARE BENEFITS ting worse. Congress should act now to Act of 1974 to improve access to health FOR ENROLLED INDIVIDUALS.— insurance and Medicare benefits for in- provide valuable coverage for these in- ‘‘(1) IN GENERAL.—An individual enrolled dividuals ages 55 to 65, and for other dividuals. under this part is entitled to the same bene- purposes; to the Committee on Fi- fits under this title as an individual entitled I ask unanimous consent that the nance. to benefits under part A and enrolled under summary and the full text of the bill be THE MEDICARE EARLY ACCESS ACT OF 1999 part B. printed in the RECORD. ‘‘(2) DEFINITIONS.—For purposes of this Mr. MOYNIHAN. Mr. President, part: There being no objection, the mate- today, I introduce a bill to provide ac- ‘‘(A) FEDERAL OR STATE COBRA CONTINU- cess to health insurance for individuals rials were ordered to be printed in the ATION PROVISION.—The term ‘Federal or between the ages of 55–65. These indi- RECORD, as follows: State COBRA continuation provision’ has viduals are too young for Medicare, not the meaning given the term ‘COBRA con- S. 202 poor enough to qualify for Medicaid, tinuation provision’ in section 2791(d)(4) of and in many cases, are forced into Be it enacted by the Senate and House of Rep- the Public Health Service Act and includes a early retirement or pushed out of their resentatives of the United States of America in comparable State program, as determined by the Secretary. jobs in corporate downsizing. Congress assembled, ‘‘(B) FEDERAL HEALTH INSURANCE PROGRAM The ‘‘Medicare Early Access Act’’ is SECTION 1. SHORT TITLE; TABLE OF CONTENTS. DEFINED.—The term ‘Federal health insur- based on the President’s three-part ini- ance program’ means any of the following: (a) SHORT TITLE.—This Act may be cited as tiative announced last January. The ‘‘(i) MEDICARE.—Part A or part B of this bill is a targeted proposal to give older the ‘‘Medicare Early Access Act of 1999’’. title (other than by reason of this part). Americans under 65 new options to ob- (b) TABLE OF CONTENTS.—The table of con- ‘‘(ii) MEDICAID.—A State plan under title tain health insurance coverage. Many tents of this Act is as follows: XIX. of these Americans have worked hard ‘‘(iii) FEHBP.—The Federal employees Sec. 1. Short title; table of contents. health benefit program under chapter 89 of all their lives, but, through no fault of title 5, United States Code. TITLE I—ACCESS TO MEDICARE BENE- their own, find themselves uninsured ‘‘(iv) TRICARE.—The TRICARE program FITS FOR INDIVIDUALS 62-TO-65 YEARS just as they are entering the years (as defined in section 1072(7) of title 10, OF AGE when the risk of serious illness is in- United States Code). creasing. This legislation attempts to Sec. 101. Access to medicare benefits for ‘‘(v) ACTIVE DUTY MILITARY.—Health bene- bridge the gap in coverage between individuals 62-to-65 years of age. fits under title 10, United States Code, to an individual as a member of the uniformed years when persons are in the labor ‘‘PART D—PURCHASE OF MEDICARE BENEFITS services of the United States. force and the age (65) when they be- BY CERTAIN INDIVIDUALS AGE 62-TO-65 ‘‘(C) GROUP HEALTH PLAN.—The term ‘group come eligible for Medicare. YEARS OF AGE health plan’ has the meaning given such The bill has three parts: (1) It enables ‘‘Sec. 1859. Program benefits; eligibility. term in section 2791(a)(1) of the Public persons between ages 62 and 64 to buy ‘‘Sec. 1859A. Enrollment process; cov- Health Service Act. into Medicare by paying a full pre- erage. ‘‘(b) ELIGIBILITY OF INDIVIDUALS AGE 62-TO- mium; (2) It provides displaced workers ‘‘Sec. 1859B. Premiums. 65 YEARS OF AGE.— over age 55 access to Medicare by offer- ‘‘Sec. 1859C. Payment of premiums. ‘‘(1) IN GENERAL.—Subject to paragraph (2), ing a similar Medicare buy-in option; ‘‘Sec. 1859D. Medicare Early Access an individual who meets the following re- and (3) It extends COBRA coverage to Trust Fund. quirements with respect to a month is eligi- ble to enroll under this part with respect to persons 55 and over whose employers ‘‘Sec. 1859E. Oversight and accountabil- ity. such month: withdraw retiree health benefits. ‘‘(A) AGE.—As of the last day of the month, ‘‘Sec. 1859F. Administration and mis- The program is largely self-financing the individual has attained 62 years of age, cellaneous.’’. and is substantially paid for by pre- but has not attained 65 years of age. S628 CONGRESSIONAL RECORD — SENATE January 19, 1999

‘‘(B) MEDICARE ELIGIBILITY (BUT FOR AGE).— ‘‘(2) AUTHORITY TO CORRECT FOR GOVERN- ‘‘(A) BASE MONTHLY PREMIUM FOR INDIVID- The individual would be eligible for benefits MENT ERRORS.—The provisions of section UALS 62 YEARS OF AGE OR OLDER.—A base under part A or part B for the month if the 1837(h) apply with respect to enrollment monthly premium for individuals 62 years of individual were 65 years of age. under this part in the same manner as they age or older is equal to 1⁄12 of the base annual ‘‘(C) NOT ELIGIBLE FOR COVERAGE UNDER apply to enrollment under part B. premium rate computed under subsection (b) GROUP HEALTH PLANS OR FEDERAL HEALTH IN- ‘‘(c) DATE COVERAGE BEGINS.— for each premium area. SURANCE PROGRAMS.—The individual is not ‘‘(1) IN GENERAL.—The period during which ‘‘(B) DEFERRED MONTHLY PREMIUMS FOR IN- eligible for benefits or coverage under a Fed- an individual is entitled to benefits under DIVIDUALS 62 YEARS OF AGE OR OLDER.—The eral health insurance program (as defined in this part shall begin as follows, but in no Secretary shall, during September of each subsection (a)(2)(B)) or under a group health case earlier than July 1, 2000: year (beginning with 1999), determine under plan (other than such eligibility merely ‘‘(A) In the case of an individual who en- subsection (c) the amount of deferred month- through a Federal or State COBRA continu- rolls (including pre-enrolls) before the month ly premiums that shall apply with respect to ation provision) as of the last day of the in which the individual satisfies eligibility individuals who first obtain coverage under month involved. for enrollment under section 1859, the first this part under section 1859(b) in the suc- ‘‘(2) LIMITATION ON ELIGIBILITY IF TERMI- day of such month of eligibility. ceeding year. NATED ENROLLMENT.—If an individual de- ‘‘(B) In the case of an individual who en- ‘‘(3) ESTABLISHMENT OF PREMIUM AREAS.— scribed in paragraph (1) enrolls under this rolls during or after the month in which the For purposes of this part, the term ‘premium part and coverage of the individual is termi- individual first satisfies eligibility for en- area’ means such an area as the Secretary nated under section 1859A(d) (other than be- rollment under such section, the first day of shall specify to carry out this part. The Sec- cause of age), the individual is not again eli- the following month. retary from time to time may change the gible to enroll under this subsection unless ‘‘(2) AUTHORITY TO PROVIDE FOR PARTIAL boundaries of such premium areas. The Sec- the following requirements are met: MONTHS OF COVERAGE.—Under regulations, retary shall seek to minimize the number of ‘‘(A) NEW COVERAGE UNDER GROUP HEALTH the Secretary may, in the Secretary’s discre- such areas specified under this paragraph. PLAN OR FEDERAL HEALTH INSURANCE PRO- tion, provide for coverage periods that in- ‘‘(b) BASE ANNUAL PREMIUM FOR INDIVID- GRAM.—After the date of termination of cov- clude portions of a month in order to avoid UALS 62 YEARS OF AGE OR OLDER.— erage under such section, the individual ob- lapses of coverage. ‘‘(1) NATIONAL, PER CAPITA AVERAGE.—The tains coverage under a group health plan or ‘‘(3) LIMITATION ON PAYMENTS.—No pay- Secretary shall estimate the average, annual under a Federal health insurance program. ments may be made under this title with re- per capita amount that would be payable ‘‘(B) SUBSEQUENT LOSS OF NEW COVERAGE.— spect to the expenses of an individual en- under this title with respect to individuals The individual subsequently loses eligibility rolled under this part unless such expenses residing in the United States who meet the for the coverage described in subparagraph were incurred by such individual during a pe- requirement of section 1859(b)(1)(A) as if all (A) and exhausts any eligibility the individ- riod which, with respect to the individual, is such individuals were eligible for (and en- ual may subsequently have for coverage a coverage period under this section. rolled) under this title during the entire year under a Federal or State COBRA continu- ‘‘(d) TERMINATION OF COVERAGE.— (and assuming that section 1862(b)(2)(A)(i) ation provision. ‘‘(1) IN GENERAL.—An individual’s coverage did not apply). ‘‘(3) CHANGE IN HEALTH PLAN ELIGIBILITY period under this part shall continue until ‘‘(2) GEOGRAPHIC ADJUSTMENT.—The Sec- DOES NOT AFFECT COVERAGE.—In the case of the individual’s enrollment has been termi- an individual who is eligible for and enrolls retary shall reduce, as determined appro- nated at the earliest of the following: under this part under this subsection, the in- priate, the amount determined under para- ‘‘(A) GENERAL PROVISIONS.— dividual’s continued entitlement to benefits graph (1) for a premium area (specified under ‘‘(i) NOTICE.—The individual files notice (in under this part shall not be affected by the subsection (a)(3)) that has costs below the a form and manner prescribed by the Sec- individual’s subsequent eligibility for bene- national average, in order to assure partici- retary) that the individual no longer wishes fits or coverage described in paragraph pation in all areas throughout the United to participate in the insurance program (1)(C), or entitlement to such benefits or cov- States. under this part. erage. ‘‘(3) BASE ANNUAL PREMIUM.—The base an- ‘‘(ii) NONPAYMENT OF PREMIUMS.—The indi- nual premium under this subsection for ‘‘SEC. 1859A. ENROLLMENT PROCESS; COVERAGE. vidual fails to make payment of premiums months in a year for individuals 62 years of ‘‘(a) IN GENERAL.—An individual may en- required for enrollment under this part. roll in the program established under this age or older residing in a premium area is ‘‘(iii) MEDICARE ELIGIBILITY.—The individ- part only in such manner and form as may equal to the average, annual per capita ual becomes entitled to benefits under part A be prescribed by regulations, and only during amount estimated under paragraph (1) for an enrollment period prescribed by the Sec- or enrolled under part B (other than by rea- the year, adjusted for such area under para- retary consistent with the provisions of this son of this part). graph (2). section. Such regulations shall provide a ‘‘(B) TERMINATION BASED ON AGE.—The indi- ‘‘(c) DEFERRED PREMIUM RATE FOR INDIVID- process under which— vidual attains 65 years of age. UALS 62 YEARS OF AGE OR OLDER.—The de- ‘‘(1) individuals eligible to enroll as of a ‘‘(2) EFFECTIVE DATE OF TERMINATION.— ferred premium rate for individuals with a month are permitted to pre-enroll during a ‘‘(A) NOTICE.—The termination of a cov- group of individuals who obtain coverage prior month within an enrollment period de- erage period under paragraph (1)(A)(i) shall under section 1859(b) in a year shall be com- scribed in subsection (b); and take effect at the close of the month follow- puted by the Secretary as follows: ‘‘(2) each individual seeking to enroll ing for which the notice is filed. ‘‘(1) ESTIMATION OF NATIONAL, PER CAPITA under section 1859(b) is notified, before en- ‘‘(B) NONPAYMENT OF PREMIUM.—The termi- ANNUAL AVERAGE EXPENDITURES FOR ENROLL- rolling, of the deferred monthly premium nation of a coverage period under paragraph MENT GROUP.—The Secretary shall estimate amount the individual will be liable for (1)(A)(ii) shall take effect on a date deter- the average, per capita annual amount that under section 1859C(b) upon attaining 65 mined under regulations, which may be de- will be paid under this part for individuals in years of age as determined under section termined so as to provide a grace period in such group during the period of enrollment 1859B(c)(3). which overdue premiums may be paid and under section 1859(b). In making such esti- ‘‘(b) ENROLLMENT PERIODS.— coverage continued. The grace period deter- mate for coverage beginning in a year before ‘‘(1) INDIVIDUALS 62-TO-65 YEARS OF AGE.—In mined under the preceding sentence shall not 2004, the Secretary may base such estimate the case of individuals eligible to enroll exceed 60 days; except that it may be ex- on the average, per capita amount that under this part under section 1859(b)— tended for an additional 30 days in any case would be payable if the program had been in ‘‘(A) INITIAL ENROLLMENT PERIOD.—If the where the Secretary determines that there operation over a previous period of at least 4 individual is eligible to enroll under such was good cause for failure to pay the overdue years. section for July 2000, the enrollment period premiums within such 60-day period. ‘‘(2) DIFFERENCE BETWEEN ESTIMATED EX- shall begin on May 1, 2000, and shall end on ‘‘(C) AGE OR MEDICARE ELIGIBILITY.—The PENDITURES AND ESTIMATED PREMIUMS.— August 31, 2000. Any such enrollment before termination of a coverage period under para- Based on the characteristics of individuals in July 1, 2000, is conditioned upon compliance graph (1)(A)(iii) or (1)(B) shall take effect as such group, the Secretary shall estimate with the conditions of eligibility for July of the first day of the month in which the in- during the period of coverage of the group 2000. dividual attains 65 years of age or becomes under this part under section 1859(b) the ‘‘(B) SUBSEQUENT PERIODS.—If the individ- entitled to benefits under part A or enrolled amount by which— ual is eligible to enroll under such section for benefits under part B (other than by rea- ‘‘(A) the amount estimated under para- for a month after July 2000, the enrollment son of this part). graph (1); exceeds period shall begin on the first day of the sec- ‘‘SEC. 1859B. PREMIUMS. ‘‘(B) the average, annual per capita ond month before the month in which the in- ‘‘(a) AMOUNT OF MONTHLY PREMIUMS.— amount of premiums that will be payable for dividual first is eligible to so enroll and shall ‘‘(1) BASE MONTHLY PREMIUMS.—The Sec- months during the year under section end 4 months later. Any such enrollment be- retary shall, during September of each year 1859C(a) for individuals in such group (in- fore the first day of the third month of such (beginning with 1999), determine the follow- cluding premiums that would be payable if enrollment period is conditioned upon com- ing premium rates which shall apply with re- there were no terminations in enrollment pliance with the conditions of eligibility for spect to coverage provided under this title under clause (i) or (ii) of section such third month. for any month in the succeeding year: 1859A(d)(1)(A)). January 19, 1999 CONGRESSIONAL RECORD — SENATE S629

‘‘(3) ACTUARIAL COMPUTATION OF DEFERRED vidual would have had if the enrollment were tain financial solvency of the program under MONTHLY PREMIUM RATES.—The Secretary not so terminated. this part. shall determine deferred monthly premium ‘‘(2) PERIOD OF PAYMENT.—The period de- ‘‘SEC. 1859F. ADMINISTRATION AND MISCELLANE- rates for individuals in such group in a man- scribed in this paragraph for an individual is OUS. ner so that— the period beginning with the first month in ‘‘(a) TREATMENT FOR PURPOSES OF THIS ‘‘(A) the estimated actuarial value of such which the individual has attained 65 years of TITLE.—Except as otherwise provided in this premiums payable under section 1859C(b), is age and ending with the month before the part— equal to month in which the individual attains 85 ‘‘(1) an individual enrolled under this part ‘‘(B) the estimated actuarial present value years of age. shall be treated for purposes of this title as of the differences described in paragraph (2). ‘‘(3) COLLECTION.—In the case of an individ- though the individual was entitled to bene- Such rate shall be computed for each indi- ual who is liable for a premium under this fits under part A and enrolled under part B; vidual in the group in a manner so that the subsection, the amount of the premium shall and rate is based on the number of months be- be collected in the same manner as the pre- ‘‘(2) benefits described in section 1859 shall tween the first month of coverage based on mium for enrollment under such part is col- be payable under this title to such an indi- enrollment under section 1859(b) and the lected under section 1840, except that any vidual in the same manner as if such individ- month in which the individual attains 65 reference in such section to the Federal Sup- ual was so entitled and enrolled. years of age. plementary Medical Insurance Trust Fund is ‘‘(b) NOT TREATED AS MEDICARE PROGRAM ‘‘(4) DETERMINANTS OF ACTUARIAL PRESENT deemed to be a reference to the Medicare FOR PURPOSES OF MEDICAID PROGRAM.—For VALUES.—The actuarial present values de- Early Access Trust Fund established under purposes of applying title XIX (including the scribed in paragraph (3) shall reflect— section 1859D. provision of medicare cost-sharing assist- ‘‘(A) the estimated probabilities of survival ‘‘(c) APPLICATION OF CERTAIN PROVISIONS.— ance under such title), an individual who is at ages 62 through 84 for individuals enrolled The provisions of section 1840 (other than enrolled under this part shall not be treated during the year; and subsection (h)) shall apply to premiums col- as being entitled to benefits under this title. ‘‘(B) the estimated effective average inter- lected under this section in the same manner ‘‘(c) NOT TREATED AS MEDICARE PROGRAM est rates that would be earned on invest- as they apply to premiums collected under FOR PURPOSES OF COBRA CONTINUATION PRO- ments held in the trust funds under this title part B, except that any reference in such sec- VISIONS.—In applying a COBRA continuation during the period in question. tion to the Federal Supplementary Medical provision (as defined in section 2791(d)(4) of ‘‘SEC. 1859C. PAYMENT OF PREMIUMS. Insurance Trust Fund is deemed a reference the Public Health Service Act), any ref- ‘‘(a) PAYMENT OF BASE MONTHLY PRE- to the Trust Fund established under section erence to an entitlement to benefits under MIUM.— 1859D. this title shall not be construed to include ‘‘(1) IN GENERAL.—The Secretary shall pro- ‘‘SEC. 1859D. MEDICARE EARLY ACCESS TRUST entitlement to benefits under this title pur- vide for payment and collection of the base FUND. suant to the operation of this part.’’. monthly premium, determined under section ‘‘(a) ESTABLISHMENT OF TRUST FUND.— (b) CONFORMING AMENDMENTS TO SOCIAL SE- 1859B(a)(1) for the age (and age cohort, if ap- ‘‘(1) IN GENERAL.—There is hereby created CURITY ACT PROVISIONS.— plicable) of the individual involved and the on the books of the Treasury of the United (1) Section 201(i)(1) of the Social Security premium area in which the individual prin- States a trust fund to be known as the ‘Medi- Act (42 U.S.C. 401(i)(1)) is amended by strik- cipally resides, in the same manner as for care Early Access Trust Fund’ (in this sec- ing ‘‘or the Federal Supplementary Medical payment of monthly premiums under section tion referred to as the ‘Trust Fund’). The Insurance Trust Fund’’ and inserting ‘‘the 1840, except that, for purposes of applying Trust Fund shall consist of such gifts and be- Federal Supplementary Medical Insurance this section, any reference in such section to quests as may be made as provided in section Trust Fund, and the Medicare Early Access the Federal Supplementary Medical Insur- 201(i)(1) and such amounts as may be depos- Trust Fund’’. ance Trust Fund is deemed a reference to the ited in, or appropriated to, such fund as pro- (2) Section 201(g)(1)(A) of such Act (42 Trust Fund established under section 1859D. vided in this title. U.S.C. 401(g)(1)(A)) is amended by striking ‘‘(2) PERIOD OF PAYMENT.—In the case of an ‘‘(2) PREMIUMS.—Premiums collected under ‘‘and the Federal Supplementary Medical In- individual who participates in the program section 1859B shall be transferred to the surance Trust Fund established by title established by this title, the base monthly Trust Fund. XVIII’’ and inserting ‘‘, the Federal Supple- premium shall be payable for the period ‘‘(b) INCORPORATION OF PROVISIONS.— mentary Medical Insurance Trust Fund, and commencing with the first month of the in- ‘‘(1) IN GENERAL.—Subject to paragraph (2), the Medicare Early Access Trust Fund estab- dividual’s coverage period and ending with subsections (b) through (i) of section 1841 lished by title XVIII’’. the month in which the individual’s coverage shall apply with respect to the Trust Fund (3) Section 1820(i) of such Act (42 U.S.C. under this title terminates. and this title in the same manner as they 1395i–4(i)) is amended by striking ‘‘part D’’ ‘‘(b) PAYMENT OF DEFERRED PREMIUM FOR apply with respect to the Federal Supple- and inserting ‘‘part E’’. INDIVIDUALS COVERED AFTER ATTAINING AGE mentary Medical Insurance Trust Fund and (4) Part C of title XVIII of such Act is 62.— part B, respectively. amended— ‘‘(1) RATE OF PAYMENT.— ‘‘(2) MISCELLANEOUS REFERENCES.—In ap- (A) in section 1851(a)(2)(B) (42 U.S.C. 1395w– ‘‘(A) IN GENERAL.—In the case of an indi- plying provisions of section 1841 under para- 21(a)(2)(B)), by striking ‘‘1859(b)(3)’’ and in- vidual who is covered under this part for a graph (1)— serting ‘‘1858(b)(3); month pursuant to an enrollment under sec- ‘‘(A) any reference in such section to ‘this (B) in section 1851(a)(2)(C) (42 U.S.C. 1395w– tion 1859(b), subject to subparagraph (B), the part’ is construed to refer to this part D; 21(a)(2)(C)), by striking ‘‘1859(b)(2)’’ and in- individual is liable for payment of a deferred ‘‘(B) any reference in section 1841(h) to sec- serting ‘‘1858(b)(2)’’; premium in each month during the period tion 1840(d) and in section 1841(i) to sections (C) in section 1852(a)(1) (42 U.S.C. 1395w– described in paragraph (2) in an amount 1840(b)(1) and 1842(g) are deemed references 22(a)(1)), by striking ‘‘1859(b)(3)’’ and insert- equal to the full deferred monthly premium to comparable authority exercised under this ing ‘‘1858(b)(3); rate determined for the individual under sec- part; and (D) in section 1852(a)(3)(B)(ii) (42 U.S.C. tion 1859B(c). ‘‘(C) payments may be made under section 1395w–22(a)(3)(B)(ii)), by striking ‘‘(B) SPECIAL RULES FOR THOSE WHO 1841(g) to the trust funds under sections 1817 ‘‘1859(b)(2)(B)’’ and inserting ‘‘1858(b)(2)(B)’’; DISENROLL EARLY.— and 1841 as reimbursement to such funds for (E) in section 1853(a)(1)(A) (42 U.S.C. 1395w– ‘‘(i) IN GENERAL.—If such an individual’s payments they made for benefits provided 23(a)(1)(A)), by striking ‘‘1859(e)(4)’’ and in- enrollment under such section is terminated under this part. serting ‘‘1858(e)(4)’’; and under clause (i) or (ii) of section ‘‘SEC. 1859E. OVERSIGHT AND ACCOUNTABILITY. (F) in section 1853(a)(3)(D) (42 U.S.C. 1395w– 1859A(d)(1)(A), subject to clause (ii), the ‘‘(a) THROUGH ANNUAL REPORTS OF TRUST- 23(a)(3)(D)), by striking ‘‘1859(e)(4)’’ and in- amount of the deferred premium otherwise EES.—The Board of Trustees of the Medicare serting ‘‘1858(e)(4)’’. established under this paragraph shall be Early Access Trust Fund under section (5) Section 1853(c) of such Act (42 U.S.C. pro-rated to reflect the number of months of 1859D(b)(1) shall report on an annual basis to 1395w–23(c)) is amended— coverage under this part under such enroll- Congress concerning the status of the Trust (A) in paragraph (1), by striking ‘‘or (7)’’ ment compared to the maximum number of Fund and the need for adjustments in the and inserting ‘‘, (7), or (8)’’, and months of coverage that the individual program under this part to maintain finan- (B) by adding at the end the following: would have had if the enrollment were not so cial solvency of the program under this part. ‘‘(8) ADJUSTMENT FOR EARLY ACCESS.—In terminated. ‘‘(b) PERIODIC GAO REPORTS.—The Comp- applying this subsection with respect to indi- ‘‘(ii) ROUNDING TO 12-MONTH MINIMUM COV- troller General of the United States shall pe- viduals entitled to benefits under part D, the ERAGE PERIODS.—In applying clause (i), the riodically submit to Congress reports on the Secretary shall provide for an appropriate number of months of coverage (if not a mul- adequacy of the financing of coverage pro- adjustment in the Medicare+Choice capita- tiple of 12) shall be rounded to the next high- vided under this part. The Comptroller Gen- tion rate as may be appropriate to reflect est multiple of 12 months, except that in no eral shall include in such report such rec- differences between the population served case shall this clause result in a number of ommendations for adjustments in such fi- under such part and the population under months of coverage exceeding the maximum nancing and coverage as the Comptroller parts A and B.’’. number of months of coverage that the indi- General deems appropriate in order to main- (c) OTHER CONFORMING AMENDMENTS.— S630 CONGRESSIONAL RECORD — SENATE January 19, 1999 (1) Section 138(b)(4) of the Internal Reve- vidual described in this clause is an ance with the conditions of eligibility for nue Code of 1986 is amended by striking individual— July 2000. ‘‘1859(b)(3)’’ and inserting ‘‘1858(b)(3)’’. ‘‘(I) who was offered coverage under a Fed- ‘‘(B) SUBSEQUENT PERIODS.—If the individ- (2)(A) Section 602(2)(D)(ii) of the Employee eral or State COBRA continuation provision ual is eligible to enroll under such section Retirement Income Security Act of 1974 (29 at the time of loss of coverage eligibility de- for a month after July 2000, the enrollment U.S.C. 1162(2)) is amended by inserting ‘‘(not scribed in subparagraph (C)(ii); or period based on such eligibility shall begin including an individual who is so entitled ‘‘(II) whose spouse was offered such cov- on the first day of the second month before pursuant to enrollment under section erage in a manner that permitted coverage the month in which the individual first is el- 1859A)’’ after ‘‘Social Security Act’’. of the individual at such time. igible to so enroll (or reenroll) and shall end (B) Section 2202(2)(D)(ii) of the Public ‘‘(iii) MONTHS OF POSSIBLE COBRA CONTINU- 4 months later.’’; Health Service Act (42 U.S.C. 300bb– ATION COVERAGE.—A month described in this (3) in subsection (d)(1), by amending sub- 2(2)(D)(ii)) is amended by inserting ‘‘(not in- clause is a month for which an individual de- paragraph (B) to read as follows: cluding an individual who is so entitled pur- scribed in clause (ii) could have had coverage ‘‘(B) TERMINATION BASED ON AGE.— suant to enrollment under section 1859A)’’ described in such clause as of the last day of ‘‘(i) AT AGE 65.—Subject to clause (ii), the after ‘‘Social Security Act’’. the month if the individual (or the spouse of individual attains 65 years of age. (C) Section 4980B(f)(2)(B)(i)(V) of the Inter- the individual, as the case may be) had elect- ‘‘(ii) AT AGE 62 FOR DISPLACED WORKERS AND nal Revenue Code of 1986 is amended by in- ed such coverage on a timely basis. SPOUSES.—In the case of an individual en- serting ‘‘(not including an individual who is ‘‘(E) NOT ELIGIBLE FOR COVERAGE UNDER rolled under this part pursuant to section so entitled pursuant to enrollment under FEDERAL HEALTH INSURANCE PROGRAM OR 1859(c), subject to subsection (a)(1), the indi- section 1859A)’’ after ‘‘Social Security Act’’. GROUP HEALTH PLANS.—The individual is not vidual attains 62 years of age.’’; TITLE II—ACCESS TO MEDICARE BENE- eligible for benefits or coverage under a Fed- (4) in subsection (d)(1), by adding at the FITS FOR DISPLACED WORKERS 55-TO-62 eral health insurance program or under a end the following new subparagraph: YEARS OF AGE group health plan (whether on the basis of ‘‘(C) OBTAINING ACCESS TO EMPLOYMENT- the individual’s employment or employment BASED COVERAGE OR FEDERAL HEALTH INSUR- SEC. 201. ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 55-TO-62 of the individual’s spouse) as of the last day ANCE PROGRAM FOR INDIVIDUALS UNDER 62 YEARS OF AGE. of the month involved. YEARS OF AGE.—In the case of an individual (a) ELIGIBILITY.—Section 1859 of the Social ‘‘(2) SPOUSE OF DISPLACED WORKER.—Sub- who has not attained 62 years of age, the in- Security Act, as inserted by section 101(a)(2), ject to paragraph (3), an individual who dividual is covered (or eligible for coverage) is amended by adding at the end the follow- meets the following requirements with re- as a participant or beneficiary under a group ing new subsection: spect to a month is eligible to enroll under health plan or under a Federal health insur- ‘‘(c) DISPLACED WORKERS AND SPOUSES.— this part with respect to such month: ance program.’’; ‘‘(1) DISPLACED WORKERS.—Subject to para- ‘‘(A) AGE.—As of the last day of the month, (5) in subsection (d)(2), by amending sub- graph (3), an individual who meets the fol- the individual has not attained 62 years of paragraph (C) to read as follows: lowing requirements with respect to a month age. ‘‘(C) AGE OR MEDICARE ELIGIBILITY.— is eligible to enroll under this part with re- ‘‘(B) MARRIED TO DISPLACED WORKER.—The ‘‘(i) IN GENERAL.—The termination of a spect to such month: individual is the spouse of an individual at coverage period under paragraph (1)(A)(iii) or ‘‘(A) AGE.—As of the last day of the month, the time the individual enrolls under this (1)(B)(i) shall take effect as of the first day the individual has attained 55 years of age, part under paragraph (1) and loses coverage of the month in which the individual attains but has not attained 62 years of age. described in paragraph (1)(C)(ii) because the 65 years of age or becomes entitled to bene- ‘‘(B) MEDICARE ELIGIBILITY (BUT FOR AGE).— individual’s spouse lost such coverage. fits under part A or enrolled for benefits The individual would be eligible for benefits ‘‘(C) MEDICARE ELIGIBILITY (BUT FOR AGE); under part B. under part A or B for the month if the indi- EXHAUSTION OF ANY COBRA CONTINUATION COV- ‘‘(ii) DISPLACED WORKERS.—The termi- vidual were 65 years of age. ERAGE; AND NOT ELIGIBLE FOR COVERAGE nation of a coverage period under paragraph ‘‘(C) LOSS OF EMPLOYMENT-BASED COV- UNDER FEDERAL HEALTH INSURANCE PROGRAM (1)(B)(ii) shall take effect as of the first day ERAGE.— OR GROUP HEALTH PLAN.—The individual of the month in which the individual attains ‘‘(i) ELIGIBLE FOR UNEMPLOYMENT COM- meets the requirements of subparagraphs 62 years of age, unless the individual has en- PENSATION.—The individual meets the re- (B), (D), and (E) of paragraph (1). rolled under this part pursuant to section quirements relating to period of covered em- ‘‘(3) CHANGE IN HEALTH PLAN ELIGIBILITY AF- 1859(b) and section 1859E(c)(1).’’; and ployment and conditions of separation from FECTS CONTINUED ELIGIBILITY.—For provision (6) in subsection (d)(2), by adding at the employment to be eligible for unemployment that terminates enrollment under this sec- end the following new subparagraph: compensation (as defined in section 85(b) of tion in the case of an individual who be- ‘‘(D) ACCESS TO COVERAGE.—The termi- the Internal Revenue Code of 1986), based on comes eligible for coverage under a group nation of a coverage period under paragraph a separation from employment occurring on health plan or under a Federal health insur- (1)(C) shall take effect on the date on which or after January 1, 1999. The previous sen- ance program, see section 1859A(d)(1)(C). the individual is eligible to begin a period of tence shall not be construed as requiring the ‘‘(4) REENROLLMENT PERMITTED.—Nothing creditable coverage (as defined in section individual to be receiving such unemploy- in this subsection shall be construed as pre- 2701(c) of the Public Health Service Act) ment compensation. venting an individual who, after enrolling under a group health plan or under a Federal ‘‘(ii) LOSS OF EMPLOYMENT-BASED COV- under this subsection, terminates such en- health insurance program.’’. ERAGE.—Immediately before the time of such rollment from subsequently reenrolling (c) PREMIUMS.—Section 1859B of such Act, separation of employment, the individual under this subsection if the individual is eli- as so inserted, is amended— was covered under a group health plan on the gible to enroll under this subsection at that (1) in subsection (a)(1), by adding at the basis of such employment, and, because of time.’’. end the following: such loss, is no longer eligible for coverage (b) ENROLLMENT.—Section 1859A of such ‘‘(B) BASE MONTHLY PREMIUM FOR INDIVID- under such plan (including such eligibility Act, as so inserted, is amended— UALS UNDER 62 YEARS OF AGE.—A base month- based on the application of a Federal or (1) in subsection (a), by striking ‘‘and’’ at ly premium for individuals under 62 years of State COBRA continuation provision) as of the end of paragraph (1), by striking the pe- age, equal to 1⁄12 of the base annual premium the last day of the month involved. riod at the end of paragraph (2) and inserting rate computed under subsection (d)(3) for ‘‘(iii) PREVIOUS CREDITABLE COVERAGE FOR ‘‘; and’’, and by adding at the end the follow- each premium area and age cohort.’’; and AT LEAST 1 YEAR.—As of the date on which ing new paragraph: (2) by adding at the end the following new the individual loses coverage described in ‘‘(3) individuals whose coverage under this subsection: clause (ii), the aggregate of the periods of part would terminate because of subsection ‘‘(d) BASE MONTHLY PREMIUM FOR INDIVID- creditable coverage (as determined under (d)(1)(B)(ii) are provided notice and an oppor- UALS UNDER 62 YEARS OF AGE.— section 2701(c) of the Public Health Service tunity to continue enrollment in accordance ‘‘(1) NATIONAL, PER CAPITA AVERAGE FOR Act) is 12 months or longer. with section 1859E(c)(1).’’; AGE GROUPS.— ‘‘(D) EXHAUSTION OF AVAILABLE COBRA CON- (2) in subsection (b), by inserting after Not- ‘‘(A) ESTIMATE OF AMOUNT.—The Secretary TINUATION BENEFITS.— withstanding any other provision of law, (1) shall estimate the average, annual per capita ‘‘(i) IN GENERAL.—In the case of an individ- the following: amount that would be payable under this ual described in clause (ii) for a month de- ‘‘(2) DISPLACED WORKERS AND SPOUSES.—In title with respect to individuals residing in scribed in clause (iii)— the case of individuals eligible to enroll the United States who meet the requirement ‘‘(I) the individual (or spouse) elected cov- under this part under section 1859(c), the fol- of section 1859(c)(1)(A) within each of the age erage described in clause (ii); and lowing rules apply: cohorts established under subparagraph (B) ‘‘(II) the individual (or spouse) has contin- ‘‘(A) INITIAL ENROLLMENT PERIOD.—If the as if all such individuals within such cohort ued such coverage for all months described individual is first eligible to enroll under were eligible for (and enrolled) under this in clause (iii) in which the individual (or such section for July 2000, the enrollment pe- title during the entire year (and assuming spouse) is eligible for such coverage. riod shall begin on May 1, 2000, and shall end that section 1862(b)(2)(A)(i) did not apply). ‘‘(ii) INDIVIDUALS TO WHOM COBRA CONTINU- on August 31, 2000. Any such enrollment be- ‘‘(B) AGE COHORTS.—For purposes of sub- ATION COVERAGE MADE AVAILABLE.—An indi- fore July 1, 2000, is conditioned upon compli- paragraph (A), the Secretary shall establish January 19, 1999 CONGRESSIONAL RECORD — SENATE S631

separate age cohorts in 5-year age incre- ‘‘(D) SPECIAL RULE FOR QUALIFYING RETIR- continued under the group health plan (or, if ments for individuals who have not attained EES AND DEPENDENTS.—In the case of a quali- none, under the most prevalent other plan 60 years of age and a separate cohort for in- fying event described in section 603(7), the offered by the same plan sponsor) shall be dividuals who have attained 60 years of age. term ‘qualified beneficiary’ means a quali- treated as the coverage described in such ‘‘(2) GEOGRAPHIC ADJUSTMENT.—The Sec- fied retiree and any other individual who, on sentence, or (at the option of the plan and retary shall adjust the amount determined the day before such qualifying event, is a qualified beneficiary) such other coverage under paragraph (1)(A) for each premium beneficiary under the plan on the basis of the option as may be offered and elected by the area (specified under subsection (a)(3)) in the individual’s relationship to such qualified re- qualified beneficiary involved.’’. same manner and to the same extent as the tiree.’’; and (d) INCREASED LEVEL OF PREMIUMS PER- Secretary provides for adjustments under (B) by adding at the end the following new MITTED.—Section 602(3) of such Act (29 U.S.C. subsection (b)(2). paragraphs: 1162(3)) is amended by adding at the end the ‘‘(3) BASE ANNUAL PREMIUM.—The base an- ‘‘(6) QUALIFIED RETIREE.—The term ‘quali- following new sentence: ‘‘In the case of an nual premium under this subsection for fied retiree’ means, with respect to a qualify- individual provided continuation coverage months in a year for individuals in an age ing event described in section 603(7), a cov- by reason of a qualifying event described in cohort under paragraph (1)(B) in a premium ered employee who, at the time of the section 603(7), any reference in subparagraph area is equal to 165 percent of the average, event— (A) of this paragraph to ‘102 percent of the ‘‘(A) has attained 55 years of age; and annual per capita amount estimated under applicable premium’ is deemed a reference to ‘‘(B) was receiving group health coverage paragraph (1) for the age cohort and year, ad- ‘125 percent of the applicable premium for under the plan by reason of the retirement of justed for such area under paragraph (2). employed individuals (and their dependents, the covered employee. ‘‘(4) PRO-RATION OF PREMIUMS TO REFLECT if applicable) for the coverage option re- ‘‘(7) SUBSTANTIAL REDUCTION.—The term COVERAGE DURING A PART OF A MONTH.—If the ferred to in paragraph (1)(B)’.’’. Secretary provides for coverage of portions ‘substantial reduction’— (e) NOTICE.—Section 606(a) of such Act (29 of a month under section 1859A(c)(2), the Sec- ‘‘(A) means, as determined under regula- U.S.C. 1166) is amended— retary shall pro-rate the premiums attrib- tions of the Secretary and with respect to a (1) in paragraph (4)(A), by striking ‘‘or (6)’’ utable to such coverage under this section to qualified beneficiary, a reduction in the av- and inserting ‘‘(6), or (7)’’; and reflect the portion of the month so cov- erage actuarial value of benefits under the (2) by adding at the end the following: ered.’’. plan (through reduction or elimination of (d) ADMINISTRATIVE PROVISIONS.—Section benefits, an increase in premiums, ‘‘The notice under paragraph (4) in the case 1859F of such Act, as so inserted, is amended deductibles, copayments, and coinsurance, or of a qualifying event described in section by adding at the end the following: any combination thereof), since the date of 603(7) shall be provided at least 90 days be- ‘‘(d) ADDITIONAL ADMINISTRATIVE PROVI- commencement of coverage of the bene- fore the date of the qualifying event.’’. ficiary by reason of the retirement of the SIONS.— (f) EFFECTIVE DATES.— ‘‘(1) PROCESS FOR CONTINUED ENROLLMENT covered employee (or, if later, January 6, 1999), in an amount equal to at least 50 per- (1) IN GENERAL.—The amendments made by OF DISPLACED WORKERS WHO ATTAIN 62 YEARS this section (other than subsection (e)(2)) OF AGE.—The Secretary shall provide a proc- cent of the total average actuarial value of the benefits under the plan as of such date shall apply to qualifying events occurring on ess for the continuation of enrollment of in- or after January 6, 1999. In the case of a dividuals whose enrollment under section (taking into account an appropriate adjust- ment to permit comparison of values over qualifying event occurring on or after such 1859(c) would be terminated upon attaining date and before the date of the enactment of 62 years of age. Under such process such indi- time); and ‘‘(B) includes an increase in premiums re- this Act, such event shall be deemed (for pur- viduals shall be provided appropriate and poses of such amendments) to have occurred timely notice before the date of such termi- quired to an amount that exceeds the pre- mium level described in the fourth sentence on the date of the enactment of this Act. nation and of the requirement to enroll (2) ADVANCE NOTICE OF TERMINATIONS AND under this part pursuant to section 1859(b) in of section 602(3). (b) DURATION OF COVERAGE THROUGH AGE REDUCTIONS.—The amendment made by sub- order to continue entitlement to benefits section (e)(2) shall apply to qualifying events under this title after attaining 62 years of 65.—Section 602(2)(A) of such Act (29 U.S.C. 1162(2)(A)) is amended— occurring after the date of the enactment of age. (1) in clause (ii), by inserting ‘‘or 603(7)’’ this Act, except that in no case shall notice ‘‘(2) ARRANGEMENTS WITH STATES FOR DE- after ‘‘603(6)’’; be required under such amendment before TERMINATIONS RELATING TO UNEMPLOYMENT (2) in clause (iv), by striking ‘‘or 603(6)’’ such date. COMPENSATION ELIGIBILITY.—The Secretary and inserting ‘‘, 603(6), or 603(7)’’; may provide for appropriate arrangements Subtitle B—Amendments to the Public Health (3) by redesignating clause (iv) as clause with States for the determination of whether Service Act (vi); individuals in the State meet or would meet (4) by redesignating clause (v) as clause SEC. 311. COBRA CONTINUATION BENEFITS FOR the requirements of section 1859(c)(1)(C)(i).’’. (iv) and by moving such clause to imme- CERTAIN RETIRED WORKERS WHO (e) CONFORMING AMENDMENT TO HEADING TO LOSE RETIREE HEALTH COVERAGE. diately follow clause (iii); and PART.—The heading of part D of title XVIII (a) ESTABLISHMENT OF NEW QUALIFYING of the Social Security Act, as so inserted, is (5) by inserting after such clause (iv) the EVENT.— amended by striking ‘‘62’’ and inserting ‘‘55’’. following new clause: ‘‘(v) SPECIAL RULE FOR CERTAIN DEPENDENTS (1) IN GENERAL.—Section 2203 of the Public TITLE III—COBRA PROTECTION FOR IN CASE OF TERMINATION OR SUBSTANTIAL RE- Health Service Act (42 U.S.C. 300bb–3) is EARLY RETIREES DUCTION OF RETIREE HEALTH COVERAGE.—In amended by inserting after paragraph (5) the Subtitle A—Amendments to the Employee the case of a qualifying event described in following new paragraph: Retirement Income Security Act of 1974 section 603(7), in the case of a qualified bene- ‘‘(6) The termination or substantial reduc- SEC. 301. COBRA CONTINUATION BENEFITS FOR ficiary described in section 607(3)(D) who is tion in benefits (as defined in section 2208(6)) CERTAIN RETIRED WORKERS WHO not the qualified retiree or spouse of such re- of group health plan coverage as a result of LOSE RETIREE HEALTH COVERAGE. tiree, the later of— plan changes or termination in the case of a (a) ESTABLISHMENT OF NEW QUALIFYING ‘‘(I) the date that is 36 months after the covered employee who is a qualified re- EVENT.— earlier of the date the qualified retiree be- tiree.’’. (1) IN GENERAL.—Section 603 of the Em- comes entitled to benefits under title XVIII (2) QUALIFIED RETIREE; QUALIFIED BENE- ployee Retirement Income Security Act of of the Social Security Act, or the date of the FICIARY; AND SUBSTANTIAL REDUCTION DE- 1974 (29 U.S.C. 1163) is amended by inserting death of the qualified retiree; or FINED.—Section 2208 of such Act (42 U.S.C. after paragraph (6) the following new para- ‘‘(II) the date that is 36 months after the 300bb–8) is amended— graph: date of the qualifying event.’’. (A) in paragraph (3)— ‘‘(7) The termination or substantial reduc- (c) TYPE OF COVERAGE IN CASE OF TERMI- (i) in subparagraph (A), by inserting ‘‘ex- tion in benefits (as defined in section 607(7)) NATION OR SUBSTANTIAL REDUCTION OF RE- cept as otherwise provided in this para- of group health plan coverage as a result of TIREE HEALTH COVERAGE.—Section 602(1) of graph,’’ after ‘‘means,’’; and plan changes or termination in the case of a such Act (29 U.S.C. 1162(1)) is amended— (ii) by adding at the end the following new covered employee who is a qualified re- (1) by striking ‘‘The coverage’’ and insert- subparagraph: tiree.’’. ing the following: ‘‘(C) SPECIAL RULE FOR QUALIFYING RETIR- (2) QUALIFIED RETIREE; QUALIFIED BENE- ‘‘(A) IN GENERAL.—Except as provided in EES AND DEPENDENTS.—In the case of a quali- FICIARY; AND SUBSTANTIAL REDUCTION DE- subparagraph (B), the coverage’’; and fying event described in section 2203(6), the FINED.—Section 607 of such Act (29 U.S.C. (2) by adding at the end the following: term ‘qualified beneficiary’ means a quali- 1167) is amended— ‘‘(B) CERTAIN RETIREES.—In the case of a fied retiree and any other individual who, on (A) in paragraph (3)— qualifying event described in section 603(7), the day before such qualifying event, is a (i) in subparagraph (A), by inserting ‘‘ex- in applying the first sentence of subpara- beneficiary under the plan on the basis of the cept as otherwise provided in this para- graph (A) and the fourth sentence of para- individual’s relationship to such qualified re- graph,’’ after ‘‘means,’’; and graph (3), the coverage offered that is the tiree.’’; and (ii) by adding at the end the following new most prevalent coverage option (as deter- (B) by adding at the end the following new subparagraph: mined under regulations of the Secretary) paragraphs: S632 CONGRESSIONAL RECORD — SENATE January 19, 1999

‘‘(5) QUALIFIED RETIREE.—The term ‘quali- premium for employed individuals (and their ficiary by reason of the retirement of the fied retiree’ means, with respect to a qualify- dependents, if applicable) for the coverage covered employee (or, if later, January 6, ing event described in section 2203(6), a cov- option referred to in paragraph (1)(B)’.’’. 1999), in an amount equal to at least 50 per- ered employee who, at the time of the (e) NOTICE.—Section 2206(a) of such Act (42 cent of the total average actuarial value of event— U.S.C. 300bb–6(a)) is amended— the benefits under the plan as of such date ‘‘(A) has attained 55 years of age; and (1) in paragraph (4)(A), by striking ‘‘or (4)’’ (taking into account an appropriate adjust- ‘‘(B) was receiving group health coverage and inserting ‘‘(4), or (6)’’; and ment to permit comparison of values over under the plan by reason of the retirement of (2) by adding at the end the following: time); and the covered employee. ‘‘The notice under paragraph (4) in the case ‘‘(B) includes an increase in premiums re- ‘‘(6) SUBSTANTIAL REDUCTION.—The term of a qualifying event described in section quired to an amount that exceeds the pre- ‘substantial reduction’— 2203(6) shall be provided at least 90 days be- mium level described in the fourth sentence ‘‘(A) means, as determined under regula- fore the date of the qualifying event.’’. of subsection (f)(2)(C).’’. tions of the Secretary of Labor and with re- (f) EFFECTIVE DATES.— (b) DURATION OF COVERAGE THROUGH AGE spect to a qualified beneficiary, a reduction (1) IN GENERAL.—The amendments made by 65.—Section 4980B(f)(2)(B)(i) of such Code is in the average actuarial value of benefits this section (other than subsection (e)(2)) amended— under the plan (through reduction or elimi- shall apply to qualifying events occurring on (1) in subclause (II), by inserting ‘‘or nation of benefits, an increase in premiums, or after January 6, 1999. In the case of a (3)(G)’’ after ‘‘(3)(F)’’; deductibles, copayments, and coinsurance, or qualifying event occurring on or after such (2) in subclause (IV), by striking ‘‘or any combination thereof), since the date of date and before the date of the enactment of (3)(F)’’ and inserting ‘‘, (3)(F), or (3)(G)’’; commencement of coverage of the bene- this Act, such event shall be deemed (for pur- (3) by redesignating subclause (IV) as sub- ficiary by reason of the retirement of the poses of such amendments) to have occurred clause (VI); covered employee (or, if later, January 6, on the date of the enactment of this Act. (4) by redesignating subclause (V) as sub- 1999), in an amount equal to at least 50 per- (2) ADVANCE NOTICE OF TERMINATIONS AND clause (IV) and by moving such clause to im- cent of the total average actuarial value of REDUCTIONS.—The amendment made by sub- mediately follow subclause (III); and the benefits under the plan as of such date section (e)(2) shall apply to qualifying events (5) by inserting after such subclause (IV) (taking into account an appropriate adjust- occurring after the date of the enactment of the following new subclause: ment to permit comparison of values over this Act, except that in no case shall notice ‘‘(V) SPECIAL RULE FOR CERTAIN DEPEND- time); and be required under such amendment before ENTS IN CASE OF TERMINATION OR SUBSTANTIAL ‘‘(B) includes an increase in premiums re- such date. REDUCTION OF RETIREE HEALTH COVERAGE.—In quired to an amount that exceeds the pre- Subtitle C—Amendments to the Internal the case of a qualifying event described in mium level described in the fourth sentence Revenue Code of 1986 paragraph (3)(G), in the case of a qualified of section 2202(3). beneficiary described in subsection (g)(1)(E) (b) DURATION OF COVERAGE THROUGH AGE SEC. 321. COBRA CONTINUATION BENEFITS FOR who is not the qualified retiree or spouse of 65.—Section 2202(2)(A) of such Act (42 U.S.C. CERTAIN RETIRED WORKERS WHO LOSE RETIREE HEALTH COVERAGE. such retiree, the later of— 300bb–2(2)(A)) is amended— ‘‘(a) the date that is 36 months after the (a) ESTABLISHMENT OF NEW QUALIFYING (1) by redesignating clause (iii) as clause earlier of the date the qualified retiree be- EVENT.— (iv); and comes entitled to benefits under title XVIII (1) IN GENERAL.—Section 4980B(f)(3) of the (2) by inserting after clause (ii) the follow- Internal Revenue Code of 1986 is amended by of the Social Security Act, or the date of the ing new clause: inserting after subparagraph (F) the follow- death of the qualified retiree; or ‘‘(iii) SPECIAL RULE FOR CERTAIN DEPEND- ing new subparagraph: ‘‘(b) the date that is 36 months after the ENTS IN CASE OF TERMINATION OR SUBSTANTIAL ‘‘(G) The termination or substantial reduc- date of the qualifying event.’’. REDUCTION OF RETIREE HEALTH COVERAGE.—In (c) TYPE OF COVERAGE IN CASE OF TERMI- tion in benefits (as defined in subsection the case of a qualifying event described in NATION OR SUBSTANTIAL REDUCTION OF RE- (g)(6)) of group health plan coverage as a re- section 2203(6), in the case of a qualified ben- TIREE HEALTH COVERAGE.—Section sult of plan changes or termination in the eficiary described in section 2208(3)(C) who is 4980B(f)(2)(A) of such Code is amended— case of a covered employee who is a qualified not the qualified retiree or spouse of such re- (1) by striking ‘‘The coverage’’ and insert- retiree.’’. tiree, the later of— ing the following: (2) QUALIFIED RETIREE; QUALIFIED BENE- ‘‘(I) the date that is 36 months after the ‘‘(i) IN GENERAL.—Except as provided in FICIARY; AND SUBSTANTIAL REDUCTION DE- earlier of the date the qualified retiree be- clause (ii), the coverage’’; and FINED.—Section 4980B(g) of such Code is comes entitled to benefits under title XVIII (2) by adding at the end the following: amended— of the Social Security Act, or the date of the ‘‘(ii) CERTAIN RETIREES.—In the case of a (A) in paragraph (1)— death of the qualified retiree; or qualifying event described in paragraph (i) in subparagraph (A), by inserting ‘‘ex- ‘‘(II) the date that is 36 months after the (3)(G), in applying the first sentence of cept as otherwise provided in this para- date of the qualifying event.’’. clause (i) and the fourth sentence of subpara- graph,’’ after ‘‘means,’’; and (c) TYPE OF COVERAGE IN CASE OF TERMI- graph (C), the coverage offered that is the (ii) by adding at the end the following new NATION OR SUBSTANTIAL REDUCTION OF RE- most prevalent coverage option (as deter- subparagraph: TIREE HEALTH COVERAGE.—Section 2202(1) of mined under regulations of the Secretary of ‘‘(E) SPECIAL RULE FOR QUALIFYING RETIR- such Act (42 U.S.C. 300bb–2(1)) is amended— Labor) continued under the group health EES AND DEPENDENTS.—In the case of a quali- (1) by striking ‘‘The coverage’’ and insert- plan (or, if none, under the most prevalent fying event described in subsection (f)(3)(G), ing the following: other plan offered by the same plan sponsor) the term ‘qualified beneficiary’ means a ‘‘(A) IN GENERAL.—Except as provided in shall be treated as the coverage described in qualified retiree and any other individual subparagraph (B), the coverage’’; and such sentence, or (at the option of the plan who, on the day before such qualifying event, (2) by adding at the end the following: and qualified beneficiary) such other cov- is a beneficiary under the plan on the basis ‘‘(B) CERTAIN RETIREES.—In the case of a erage option as may be offered and elected of the individual’s relationship to such quali- qualifying event described in section 2203(6), by the qualified beneficiary involved.’’. fied retiree.’’; and in applying the first sentence of subpara- (d) INCREASED LEVEL OF PREMIUMS PER- (B) by adding at the end the following new graph (A) and the fourth sentence of para- MITTED.—Section 4980B(f)(2)(C) of such Code graph (3), the coverage offered that is the paragraphs: is amended by adding at the end the follow- most prevalent coverage option (as deter- ‘‘(5) QUALIFIED RETIREE.—The term ‘quali- ing new sentence: ‘‘In the case of an individ- mined under regulations of the Secretary of fied retiree’ means, with respect to a qualify- ual provided continuation coverage by rea- Labor) continued under the group health ing event described in subsection (f)(3)(G), a son of a qualifying event described in para- plan (or, if none, under the most prevalent covered employee who, at the time of the graph (3)(G), any reference in clause (i) of other plan offered by the same plan sponsor) event— this subparagraph to ‘102 percent of the ap- shall be treated as the coverage described in ‘‘(A) has attained 55 years of age; and plicable premium’ is deemed a reference to such sentence, or (at the option of the plan ‘‘(B) was receiving group health coverage ‘125 percent of the applicable premium for and qualified beneficiary) such other cov- under the plan by reason of the retirement of employed individuals (and their dependents, erage option as may be offered and elected the covered employee. if applicable) for the coverage option re- by the qualified beneficiary involved.’’. ‘‘(6) SUBSTANTIAL REDUCTION.—The term ferred to in subparagraph (A)(ii)’.’’. (d) INCREASED LEVEL OF PREMIUMS PER- ‘substantial reduction’— (e) NOTICE.—Section 4980B(f)(6) of such MITTED.—Section 2202(3) of such Act (42 ‘‘(A) means, as determined under regula- Code is amended— U.S.C. 300bb–2(3)) is amended by adding at tions of the Secretary of Labor and with re- (1) in subparagraph (D)(i), by striking ‘‘or the end the following new sentence: ‘‘In the spect to a qualified beneficiary, a reduction (F)’’ and inserting ‘‘(F), or (G)’’; and case of an individual provided continuation in the average actuarial value of benefits (2) by adding at the end the following: coverage by reason of a qualifying event de- under the plan (through reduction or elimi- ‘‘The notice under subparagraph (D)(i) in the scribed in section 2203(6), any reference in nation of benefits, an increase in premiums, case of a qualifying event described in para- subparagraph (A) of this paragraph to ‘102 deductibles, copayments, and coinsurance, or graph (3)(G) shall be provided at least 90 days percent of the applicable premium’ is deemed any combination thereof), since the date of before the date of the qualifying event.’’. a reference to ‘125 percent of the applicable commencement of coverage of the bene- (f) EFFECTIVE DATES.— January 19, 1999 CONGRESSIONAL RECORD — SENATE S633 (1) IN GENERAL.—The amendments made by downsized, or moved, or their position was rent health problems know that a sin- this section (other than subsection (e)(2)) eliminated (defined as being eligible for un- gle serious illness could wipe out their shall apply to qualifying events occurring on employment insurance) after January 1, 2000; savings. or after January 6, 1999. In the case of a (2) had health insurance through their pre- These uninsured Americans tend to qualifying event occurring on or after such vious job for at least one year (certified be in poorer health than other mem- date and before the date of the enactment of through the process created under HIPAA to this Act, such event shall be deemed (for pur- guarantee continuation coverage); and (3) do bers of their age group. Their health poses of such amendments) to have occurred not have access to employer sponsored, continues to deteriorate, the longer on the date of the enactment of this Act. COBRA, or federal health insurance. Spouses they remain uninsured. This unneces- (2) ADVANCE NOTICE OF TERMINATIONS AND of these eligible people may also buy into sary burden of illness is a preventable REDUCTIONS.—The amendment made by sub- Medicare. human tragedy—and it adds to Medi- section (e)(2) shall apply to qualifying events Premium Payments: Participants would care’s long-term costs, because when occurring after the date of the enactment of pay one, geographically adjusted premium, these individuals turn 65, they enter this Act, except that in no case shall notice with no Medicare ‘‘loan’’. This premium rep- the program with more costly health resents what Medicare would pay on average be required under such amendment before problems and greater unmet needs for such date. for all people in this age group plus an add- on (65 percent of the age average) to com- health care services. SUMMARY OF BILL pensate for some of the extra costs of par- Even those with good coverage today TITLE I. ACCESS TO MEDICARE BENEFITS FOR ticipants who may be sicker than average. can’t be certain that it will be there to- INDIVIDUALS 62-TO-65 YEARS OF AGE These premiums would be about $400 per morrow. No one nearing retirement can The centerpiece of this initiative is the month. be confident that the health insurance Medicare buy-in for people ages 62 to 65. Disenrollment: Like persons ages 62 to 65, they have now will protect them until Eligibility: Persons ages 62 to 65 who do eligible displaced workers and their spouses they qualify for Medicare at 65. not have access to employer sponsored or must enroll in the buy-in within 63 days of Our legislation provides three kinds federal health insurance may participate. becoming eligible. Participants continue to of assistance. First, any uninsured pay premiums until they voluntarily Premium Payments: Participants would American who is 62 years old or older pay two separate premiums—one before age disenroll, gain access to federal or employer- based insurance or turn 62 and become eligi- and not yet eligible for Medicare can 65 and one between age 65 and 85. buy into the program. Participants will Base premium: The base premium would be ble for the more general Medicare buy-in. paid monthly between enrollment and when Once they disenroll, they may only re-enroll pay the full cost of their coverage, but the participant turns age 65. It is the part of if they meet all the eligibility rules again. to help keep premiums affordable, they the full premium that represents what Medi- TITLE III. RETIREE HEALTH BENEFITS can defer payment of part of the pre- care would pay on average for all people in PROTECTION ACT miums until they turn 65 and Medicare this age group. The Congressional Budget Of- The bill would also help retirees and their starts to pay most of their health care fice (CBO) estimates that this would be dependents whose former employer unex- costs. Once they turn 65, this defrayed about $300 per month. It would be adjusted pectedly drops their retiree health insur- premium will be paid back over time at for geographic variation, but the maximum ance, leaving them uncovered and with few a modest monthly charge, currently es- premium would be limited to ensure partici- options. timated at about $10 per month for pation in all areas of the country. Eligibility: Persons ages 55 to 65 and their Deferred premium: The deferred premium dependents who were receiving retiree health each year of participation in the buy-in would be paid monthly beginning at age 65 coverage but whose coverage was terminated program. Individuals age 55–61 who lose until the beneficiary turns age 85. It is the or substantially reduced (benefits’ value re- their health insurance because they are part of the premium that covers the extra duced by half or premiums increased to a laid off or because their company costs for participants who are sicker than level above 125 percent of the applicable pre- closes will also be able to buy into average. Participants will be told before mium) would qualify for ‘‘COBRA’’ continu- Medicare. Finally, people who have re- they enroll what their deferred premium will ation coverage. tired before 65 with the expectation of be. CBO estimates that this would be about Premium Payments: Participants would employer-paid health insurance cov- $10 per month per year of participation. pay 125 percent of the applicable premium. This two-part payment plan acts like a This premium is higher than what most erage would be allowed to buy into the mortgage: it makes the up-front premium af- other COBRA participants pay (102 percent) company’s program for active workers fordable but requires participants to pay because it is expected that those who enroll if the company dropped retirement back the Medicare ‘‘loan’’ with interest. It will be sicker (have higher costs) than other coverage. also ensures that in the long-run, this buy-in members of their age cohort. Today’s proposal is a lifeline for all is self-financing. Enrollment: Participants would enroll of these Americans It is also a con- Enrollment: Eligible persons can enroll through their former employer, following the structive step toward the day when within two months of either turning 62 or same rules as other COBRA eligibles. every American will be guaranteed the losing access to employer-based or federal Disenrollment: Retirees would be eligible fundamental right to health care. insurance. until they turn 65 years-old and could In the past, opponents have waged a Applicability of Medicare Rules: Services disenroll at any time. campaign of disinformation that this covered and cost sharing would be, for pay- Mr. KENNEDY. Mr. President, I com- ing participants, the same as those of Medi- sensible plan is somehow a threat to mend Senator MOYNIHAN for his strong care beneficiaries. Participants would have Medicare. They are wrong—and the the choice of fee-for-service or managed care. leadership on this issue. More than American people understand that they No Medicaid assistance would be offered to three million Americans aged 55 to 64 are wrong. Under our proposal, the par- participants for premiums or cost sharing. have no health insurance today. They ticipants themselves will ultimately Medigap policy protections would apply, but are too young for Medicare, and unable pay the full cost of this new coverage. the open enrollment provision remains at to obtain private coverage they can af- age 65. The modest short-term budget impact ford. Often, they are victims of cor- can be financed through savings ob- Disenrollment: Persons could stop buying porate downsizing, or of a company’s into Medicare at any time. People who tained by reducing fraud or abuse in disenroll would pay the deferred premium as decision to cancel their health insur- Medicare. though they had been enrolled for a full year ance. Every American should have the se- (e.g., a person who buys in for 3 months in In the past year, the number of the curity and peace of mind of knowing 2000 would pay the deferred premium as uninsured in this age group increased that their critical years in the work- though they participated for 12 months). at a faster rate than other age groups. force will not be haunted by the fear of This is intended to act as a disincentive for These Americans have been left out devastating medical costs or the in- temporary enrollment. and left behind through no fault of ability to meet basic medical needs. TITLE II. ACCESS TO MEDICARE BENEFITS FOR their own—often after decades of hard Uninsured Americans who are too DISPLACED WORKERS 55-TO-62 YEARS OF AGE work and reliable insurance coverage— young for Medicare but too old to pur- In addition to people ages 62 to 65, a tar- and it is time for Congress to provide a geted group of 55 to 61 year olds could buy chase affordable private insurance cov- helping hand. erage deserve our help—and we intend into Medicare. The Medicare buy-in would be Many of these fellow citizens have se- the same as above, with the following excep- to see that they get it. tions. rious health problems that threaten to Eligibility: Persons would be eligible if destroy the savings of a lifetime and By Mr. MOYNIHAN: they are between ages 55 and 61 and: (1) lost that prevent them from finding or S. 203. A bill to amend title XIX of their job because their firm closed, keeping a job. Even those without cur- the Social Security Act to provide for S634 CONGRESSIONAL RECORD — SENATE January 19, 1999 an equitable determination of the Fed- The current methodology for calculating mean income—is a particularly poor eral medical assistance percentage; to match rates, per capita income, is a poor and measure of poverty. An average income the Committee on Finance. inadequate measure of the states’ needs and measure skews a state’s situation if a abilities to participate in the Medicaid pro- EQUITABLE FEDERAL MEDICAID ASSISTANCE gram. The conferees note that the poverty state has extreme differences in in- PERCENTAGE ACT OF 1999 guidelines for Alaska and Hawaii, for exam- come levels among its residents, such Mr. MOYNIHAN. Mr. President, I in- ple, are different than those for the rest of as a state with a high portion of resi- troduce today a bill to revise the for- the nation but there is no variation from the dents with high-incomes and a high mula for determining the Federal Med- national calculation in the FMAP. The in- portion of residents with low-incomes. ical Assistance Percentage. Medicaid crease in Alaska’s FMAP demonstrates there Despite similar per capita incomes, services and associated administrative is a recognition that a more accurate meas- New York has a poverty rate that is costs are financed jointly by the Fed- urement is needed in the program. nearly 50 percent greater than in Mas- eral government and the States. The The General Accounting Office (GAO) sachusetts, according to GAO. formula for the Federal share of a has studied the formula inequity for The EFMAP would also use adjusted State’s payments for services, known the past several years. In testimony be- poverty levels to reflect regional vari- as the Federal Medical Assistance Per- fore the Committee on Finance in 1995, ation in cost of living. Without a cost centage (FMAP), was established when GAO concluded: of living adjustment, the national pov- Medicaid was created as part of the So- The current formula has not moderated erty level underestimates what con- cial Security Amendments of 1965. disparities across states with respect to the stitutes poverty in New York, with a The FMAP is a somewhat exotic populations and benefits Medicaid covers and the relative financial burden states bear in cost of living 13 percent above the na- creature, derived from the Hill-Burton tional average. In addition, the state’s Hospital Survey and Construction Act funding their programs. Our work over the years shows that the use of per capita in- adjusted poverty count would be of 1946, specifically designed to provide come to reflect a state’s wealth sometimes weighted to account for higher cost a higher Federal matching rate for overstates or understates the size of a state’s populations. For example, health care states with lower state funds, as meas- poverty population and its financial re- costs for the elderly can be about two ured by per capital income. A Senate sources. and a half to three and a half times colleague once described it to me as The legislation that I introduce that for adults and six to eight times the South’s revenge for the Civil War. today—The Equitable Federal Medical the cost for children. The Federal government’s share de- Assistance Percentage Act of 1999— Currently, New York’s FMAP is 50 pends upon the square of the ratio of would provide a more accurate and eq- percent. This proposed formula with state per capita income to national per uitable formula by using more precise more accurate and equitable measures capita income. Per capita income is a measures of a state’s relative capacity of wealth and need would provide New proxy but not the only proxy for meas- to raise revenue—or its wealth—and its uring the States’ relative fiscal capac- York with a 70 percent matching rate. share of the population in need. The In State Fiscal Year 1998–1999, this ity and its population’s need for assist- original concept is preserved: The goal ance. In March 1982, the Advisory Com- would yield $6.5 billion in additional of the matching formula is to offset the federal Medicaid funds for New York. mission on Intergovernmental Rela- imbalance between state resources and tions stated that, In fact, several other states and the the number of people in need in the District of Columbia would receive a *** the use of a single index, resident per state. I call this the state fiscal imbal- greater matching rate under this bill. capita income, to measure fiscal capacity, ance. A state with a larger share of re- seriously misrepresents the actual ability of In a response to a request from both many governments to raise revenue. Because sources compared to its share of need is then-Senator D’Amato and me in 1997, states tax a wide range of economic activi- in a stronger fiscal position than a GAO determined that had New York ties other than the income of their residents, state with higher needs and fewer re- had a similar equitable formula, the the per capita income measure fails to ac- sources. The formula would measure state would have received between $3.4 count for sources of revenue to which income the imbalance relative to its share of billion and $6.5 billion in additional is only related in part. This misrepresenta- the national average: the state’s fiscal federal assistance during the period of tion results in the systematic over and un- imbalance is its share of the nation’s derstatement of the ability of many states to 1989 through 1996. These additional fed- raise revenue. In addition, the recent evi- resources compared to its share of the eral funds would by no means elimi- dence suggests that per capital income has nation’s population in need. nate the existing $18 billion deficit in deteriorated as a measure of capacity *** State Share of Financing Resources. the balance of payments that New Squaring the ration of state per cap- Per capita income only reflects a por- York annually has each year. However, ita income to national per capita in- tion of a state’s potential revenue. Per- it would be a start, and an important come exaggerates the differences be- haps in the 1950’s and 1960’s, per capita first step toward correcting a long- tween States with regard to this inad- income was the best available indica- standing inequity in the Federal gov- equate proxy for both state wealth and tor of state’s wealth. Currently, the ernment’s balance of payments with of population in need of assistance. At Treasury Department estimates each the states. a commencement address in 1977 at state’s total taxable resources or TTR. I ask unanimous consent that the Kingsborough Community College in In 1994, TTR replaced per capita in- summary of the bill and the full text of Brooklyn, New York, I proposed a come in the formula for distributing the bill be included in the RECORD. change to the Hill-Burton formula by funds under the Alcohol, Drug Abuse There being no objection, the mate- suggesting that the ‘‘square’’ in the and Mental Health Services block rials were ordered to be printed in the formula be changed to the ‘‘square grant. This proposed formula compares RECORD, as follows: root.’’ The idea has not caught on. the state’s TTR to sum of all states’ S. 203 However, I remain hopeful. The Bal- TTRs. Funding capacity would be ad- Be it enacted by the Senate and House of Rep- anced Budget Act of 1997 included a justed to account for the difference in resentatives of the United States of America in provision that increased the FMAP regional health care costs. This pro- Congress assembled, rate for Alaska. My colleagues in the vides a more accurate reflection of a SECTION 1. SHORT TITLE. Committee on Finance included this state’s ability to purchase comparable This Act may be cited as the ‘‘Equitable provision as an amendment in Commit- services with similar tax efforts. The Federal Medical Assistance Percentage Act tee Mark-up. The provision increased health care price index is based on the of 1999’’. Alaska’s FMAP rate from 50 percent to Medicare hospital payment adjuster SEC. 2. EQUITABLE DETERMINATION OF FED- 59.8 percent to reflect the higher cost that accounts for geographic wage dif- ERAL MEDICAL ASSISTANCE PER- of living relative to the national aver- ferences and on a proxy for office space CENTAGE. age. For states with a higher cost of costs. (a) IN GENERAL.—Section 1905 of the Social The Population-in-Need. The number Security Act (42 U.S.C. 1396d) is amended by living, the per capita income proxy sys- adding at the end the following: tematically underestimates the state’s of persons in need of public assistance ‘‘(v) DETERMINATION OF EQUITABLE FED- population in need and overstates its would be measured by the state’s popu- ERAL MEDICAL ASSISTANCE PERCENTAGE.— relative capacity to raise revenues. As lation living below the poverty level. ‘‘(1) IN GENERAL.—Except as provided in conferees, we posited: Per capita income—or the average paragraph (4), the equitable Federal medical January 19, 1999 CONGRESSIONAL RECORD — SENATE S635 assistance percentage determined under this whose income is below the State’s cost-of- (3) in paragraph (2), by striking ‘‘50 per subsection is, for any State for a fiscal year, living adjusted poverty income level (as de- centum’’ and all that follows through the pe- 100 percent reduced by the product of 0.45 and termined under clauses (ii) and (iii)). riod at the end of paragraph (3) and inserting the ratio of— ‘‘(ii) DETERMINATION OF NUMBER OF STATE ‘‘50 percent.’’. ‘‘(A) the State’s share of cost-adjusted RESIDENTS WITH INCOMES BELOWTHE STATE’S (c) EFFECTIVE DATE.—The amendments total taxable resources determined under COST-OF-LIVING ADJUSTED POVERTY LEVEL.— made by this Act take effect on October 1, paragraph (2); to ‘‘(I) IN GENERAL.—For purposes of clause 1999. ‘‘(B) the State’s share of program need de- (iv), with respect to each State and the Dis- termined under paragraph (3). trict of Columbia, the number of residents SUMMARY OF EQUITABLE FEDERAL MEDICAL ‘‘(2) DETERMINATION OF STATE’S SHARE OF whose income for a fiscal year is below the ASSISTANCE PERCENTAGE COST-ADJUSTED TOTAL TAXABLE RESOURCES.— State’s cost-of-living adjusted poverty in- Purpose: This legislation would replace an ‘‘(A) IN GENERAL.—For purposes of para- come level applicable to a family of the size outdated formula for determining the federal graph (1)(A), with respect to a State, the involved (as determined under clause (iii)) match rate for Medicaid expenditures. The State’s share of cost-adjusted total taxable shall be determined. Federal Medical Assistance Percentage resources is the ratio of— ‘‘(II) CENSUS DATA.—The determination of (FMAP) formula was intended to account for ‘‘(i)(I) an amount equal to the most recent the number of residents under subclause (I) each state’s financial burdens by measuring 3-year average of the total taxable resources shall be based on data made generally avail- its relative wealth—or ability to pay costs— (TTR) of the State, as determined by the able by the Bureau of the Census from the and its population in need for assistance—or Secretary of the Treasury; divided by Current Population Survey. its extent of poverty. However, the current ‘‘(II) the most recent 3-year average of the ‘‘(iii) DETERMINATION OF STATE’S COST-OF- formula uses a rather crude proxy for these State’s geographic health care cost index (as LIVING ADJUSTED POVERTY INCOME LEVEL.— measurements—the per capita income in the determined under subparagraph (B)); to ‘‘(I) IN GENERAL.—For purposes of clause state. ‘‘(ii) an amount equal to the sum of the (ii)(I), a State’s cost-of-living adjusted pov- Current Formula: The Federal match rate amounts determined under clause (i) for all erty income level is the product of— (FMAP) for each state is determined as fol- States. ‘‘(aa) the United States poverty income lows: ‘‘(B) STATE’S GEOGRAPHIC HEALTH CARE threshold for the fiscal year involved (as de- FMA=1¥0.45 (state’s per capita income/na- COST INDEX.— fined by the Office of Management and Budg- tional per capita income) 2 ‘‘(i) IN GENERAL.—For purposes of subpara- et for general statistical purposes); and Per capita income measures both the graph (A)(i)(II), the geographic health care ‘‘(bb) the State’s cost-of-living index (as state’s financing capacity and population in cost index for a State for a fiscal year is the determined under subclause (II)). need. sum of— ‘‘(II) DETERMINATION OF STATE’S COST-OF- Proposed Legislation: The new formula is ‘‘(I) 0.10; LIVING INDEX.—Subject to subclause (III), a based on several years of analysis by the ‘‘(II) 0.75 multiplied by the ratio of— State’s cost-of-living index is the sum of— GAO: ‘‘(aa) the most recent 3-year average an- ‘‘(aa) 0.56; and nual wages for hospital employees in the ‘‘(bb) the product of 0.44 and the State’s State or the District of Columbia (as deter- fair market rent index determined under State Share of Resources mined under clause (ii)); to paragraph (2)(B)(iii). EFMAP=1¥0.45 5 ‘‘(bb) the most recent 3-year average an- ‘‘(III) ALTERNATE METHODOLOGY.—The State Share of Program Need nual wages for hospital employees in the 50 Commissioner of Labor Statistics may use States and the District of Columbia (as de- an alternate methodology to the formula set termined under that clause); and forth under subclause (II) to determine a A State’s Share of resources would be ‘‘(III) 0.15 multiplied by the State’s fair State’s cost-of-living index for purposes of measured by the state’s Total Taxable Reve- market rent index (as determined under subclause (I)(bb) if the Commissioner deter- nue (TTR)—the total amount of revenue clause (iii)). mines that the alternate methodology re- raised in the state—compared to the sum of ‘‘(ii) DETERMINATION OF AVERAGE ANNUAL sults in a more accurate determination of all states’ TTR. This state TTR amount is WAGES OF HOSPITAL EMPLOYEES.—The Sec- that index. adjusted for geographic differences in health retary shall provide for the determination of ‘‘(iv) WEIGHTING OF AGE CATEGORIES OF care prices, or a state health care index. The the most recent 3-year average annual wages RESIDENTS IN POVERTY TO ACCOUNT FOR HIGH- health care index adjustment accounts for for hospital employees in a State or the Dis- ER COST POPULATIONS.—For purposes of the state’s ability to purchase comparable trict of Columbia and, collectively, in the 50 clause (i), the products determined under services with similar tax efforts. States and the District of Columbia, based this clause for a fiscal year are the following: State Program Need would be measured by on the area wage data applicable to hospitals ‘‘(I) WEIGHTING OF ELDERLY RESIDENTS IN the number of residents with incomes below under section 1886(d)(3)(E) (or, if such data POVERTY.—The number of residents deter- the poverty level compared to the sum of all no longer exists, comparable data of hospital mined under clause (ii) of the State or the poor in the nation. To determine the number wages) for discharges occurring during the District of Columbia for the fiscal year who of residents living below poverty, the Fed- fiscal years involved. have attained age 65 multiplied by 3.65. eral Poverty Level would be adjusted for ‘‘(iii) DETERMINATION OF FAIR MARKET RENT ‘‘(II) WEIGHTING OF ADULT RESIDENTS IN each state to account for geographic cost of INDEX.—For purposes of clause (i)(III), a POVERTY.—The number of residents deter- living differences. The adjusted poverty State’s fair market rent index is the ratio mined under clause (ii) of the State or the count would also be weighted to account for of— District of Columbia for the fiscal year who higher cost populations, such as the elderly. The proposal would apply the current 50 ‘‘(I) the average annual fair market rent have attained age 21 but have not attained percent floor and 83 percent ceiling to for 2-bedroom housing units in the State or age 65 multiplied by 1.0. EFMAP rates for states. The EFMAP would the District of Columbia, to be determined ‘‘(III) WEIGHTING OF CHILDREN IN POV- be the federal matching rate for all pro- by the Secretary of Housing and Urban De- ERTY.—The number of residents determined gram’s that currently use the FMAP, such as velopment for the most recent 3 fiscal years under clause (ii) of the State or the District the Children’s Health Insurance Program for which data are available; to of Columbia for the fiscal year who have not ‘‘(II) the average annual fair market rent (CHIP) and foster care, as well as Medicaid. attained age 21 multiplied by 0.5. Alaska would keep its current FMAP of for such housing units for all States for such ‘‘(4) SPECIAL RULES.—For purposes of this 59.8 percent. The District of Columbia would 3 fiscal years, as so determined. subsection and subsection (b), the equitable have an adjusted EFMAP rate of reflect its ‘‘(3) DETERMINATION OF STATE’S SHARE OF Federal medical assistance percentage is— locality status, as under current law. PROGRAM NEED.— ‘‘(A) in the case of the District of Colum- ‘‘(A) IN GENERAL.—For purposes of para- bia, the percentage determined under this By Mr. MOYNIHAN (for himself, graph (1)(B), with respect to a State, the subsection for the District of Columbia Mr. JEFFORDS, and Mr. State’s share of program need is the ratio (without regard to this paragraph) multi- LIEBERMAN:) of— plied by 1.4.; and ‘‘(i) the State’s program need determined ‘‘(B) in the case of Alaska, 59.8 percent.’’. S. 204. A bill to amend chapter 5 of under subparagraph (B); to (b) CONFORMING AMENDMENTS.—Section title 13, United States Code, to require ‘‘(ii) the sum of the amounts determined 1905(b) of the Social Security Act (42 U.S.C. that any data relating to the incidence under clause (i) for all States. 1396d(b)) is amended— of poverty produced or published by the ‘‘(B) DETERMINATION OF STATE PROGRAM (1) in the matter preceding paragraph (1), Secretary of Commerce for subnational NEED.— by striking ‘‘100 per centum’’ and all that areas is corrected for differences in the ‘‘(i) IN GENERAL.—For purposes of subpara- follows through ‘‘Hawaii’’ and inserting ‘‘the cost of living in those areas; to the graph (A)(i), a State’s program need is equal equitable Federal medical assistance per- to the average (determined for the most re- centage determined under subsection (v)’’; Committee on Governmental Affairs. cent 5 fiscal years for which data are avail- (2) in paragraph (1), by striking ‘‘50 per INTRODUCTION OF THE POVERTY DATA able) of the sum of the products determined centum or more than 83 per centum,,’’ and CORRECTION ACT OF 1999 under clause (iv) for each such fiscal year inserting ‘‘50 percent or more than 83 per- Mr. MOYNIHAN. Mr. Presidents, I (based on the number of State residents cent, and’’; and rise today to introduce the Poverty S636 CONGRESSIONAL RECORD — SENATE January 19, 1999 Data Correction Act of 1999, a bill to ‘‘SUBCHAPTER VI—POVERTY DATA statistics by permitting limited shar- require that any data relating to the ‘‘§ 197. Correction of subnational data relat- ing of records among designated agen- incidence of poverty in subnational ing to poverty cies for statistical purposes under areas be corrected for the differences in ‘‘(a) Any data relating to the incidence of strong safeguards; to the Committee on the cost of living in those areas. This poverty produced or published by or for the Governmental Affairs. legislation would correct a longstand- Secretary for subnational areas shall be cor- FEDERAL COMMISSION ON STATISTICAL POLICY rected for differences in the cost of living, ing inequity and would provide us with ACT OF 1999 more accurate information on the and data produced for State and sub-State Mr. MOYNIHAN. Mr. President, I areas shall be corrected for differences in the number of Americans living in poverty. cost of living for at least all States of the join my distinguished colleague, Sen- Residents of states such as New York United States. ator BOB KERREY of Nebraska, in intro- and Connecticut earn more, on aver- ‘‘(b) Data under this section shall be pub- ducing legislation to establish a Fed- age,than do residents of Mississippi or lished in 1999 and at least every second year eral Commission on Statistical Policy. Alabama. But they also must spend thereafter. Congressman STEPHEN HORN of Califor- more. One need only try to rent an ‘‘§ 198. Development of State cost-of-living nia and Congresswoman CAROLYN apartment in New York City to under- index and State poverty thresholds MALONEY of New York plan to intro- stand this. Yet, we have a national ‘‘(a) To correct any data relating to the in- duce similar legislation in the House of poverty threshold adjusted only by cidence of poverty for differences in the cost Representatives. family size and composition, not by of living, the Secretary shall— This legislation is similar to S. 1404, where the family lives. A family of four ‘‘(1) develop or cause to be developed a The Federal Statistical System Act of just above the poverty threshold in State cost-of-living index which ranks and 1997, a bill which was favorably re- assigns an index value to each State using New York City or Anchorage is demon- data on wage, housing, and other costs rel- ported out of the Senate Committee on strably worse off than a family of four evant to the cost of living; and Governmental Affairs October 6 of last just below the threshold in, say, rural ‘‘(2) multiply the Federal Government’s year by a 9 to 0 vote. Arkansas. And yet that family in New statistical poverty thresholds by the index This Senator first introduced legisla- York might be ineligible for federal aid value for each State’s cost of living to tion to study the Federal statistical and will not count in the tallies of the produce State poverty thresholds for each system on September 25, 1996, for the poverty population used to allocate State. 104th Congress, and again on January funds among the states, while the Ar- ‘‘(b) The State cost-of-living index and re- 21, 1997, for the 105th Congress. Over sulting State poverty thresholds shall be kansas family will be eligible and will published before September 30, 2000, for cal- the past few years, I have testified be- be counted. endar year 1999 and shall be updated annu- fore the Senate Subcommittee on Over- Professor Herman B. ‘‘Dutch’’ Leon- ally for each subsequent calendar year.’’. sight of Government Management and ard and Senior Research Associate (b) CONFORMING AMENDMENT.—The table of the House Subcommittee on Govern- Monica Friar of the Taubman Center sections for chapter 5 of title 13, United ment Management, Information and for State and local government at Har- States Code, is amended by adding at the end Technology to explain this legislation. vard have devised an index of poverty the following: This bill represents more than 2 years statistics that reflects the differences ‘‘SUBCHAPTER VI—POVERTY DATA of work and much bipartisan coopera- in the cost of living between States. If ‘‘197. Correction of subnational data relating tion. we look at the ‘‘Friar-Leonard State to poverty. The Federal Commission on Statis- Cost-of-Living index,’’ as it has come ‘‘198. Development of State cost-of-living tical Policy would consist of 16 Presi- to be known, we find that, in Fiscal index and State poverty thresh- olds.’’. dential and congressional appointees Year 1997, New York had a poverty rate with expertise in fields such as actuar- of 20.5% third highest in the nation. POVERTY DATA CORRECTION ACT OF 1999— ial science, finance, and economics. Its yet the official poverty level for 1997 is BRIEF DESCRIPTION OF PROVISIONS members would conduct a thorough re- 16.6%. These adjusted statistics still re- I. REQUIRES ADJUSTMENT OF POVERTY DATA view of the U.S. statistical system, and flect poverty accurately: the poor FOR DIFFERENCES IN COST OF LIVING issue a report that would include rec- states of Mississippi and New Mexico The bill would require that any data relat- ommendations on whether statistical remain ranked higher than New York ing to poverty on a subnational basis (in- agencies should be consolidated into a in this ranking of misfortune. cluding state-by-state data) be corrected for centralized Federal Statistical Service. Mr. President, our current poverty the differences in the cost of living by state Of course, we have an example of a data are inaccurate. And these sub- or sub-state areas. The costs of basic needs, consolidated statistical agency just standard data are used in allocation such as housing, vary substantially from across our northern border. Statistics formulas used to distribute millions of state-to-state and assessments of poverty in Canada, the most centralized statis- the United States should take this into ac- Federal dollars each year. As a result, count. tical agency among OECD countries, states with high costs of living—New was established in November 1918 as a II. REQUIRES DEVELOPMENT OF STATE COST-OF- York, Connecticut, Vermont, Hawaii, LIVING INDEX AND POVERTY THRESHOLDS reaction to a familiar problem. At that California, just to name a few—are not To enable the adjustments required above, time, the Canadian Minister of Indus- getting their fair share of Federal dol- the bill requires the development of a state- try was trying to obtain an estimate of lars because differences in the cost of specific cost-of-living index based upon wage, the manpower resources that Canada living are ignored. And the poor of housing, and other cost information relevant could commit to the war effort. And he these high cost states are penalized be- to the cost of living. The bill also requires got widely different estimates from cause they happen to live there. It is that the Federal government’s poverty statistical agencies scattered through- time to correct this inequity. thresholds be multiplied by this index to out the government. Consolidation I ask unanimous consent that a sum- produce state-specific poverty thresholds. seemed the way to solve this problem, mary of the legislation and its full text These thresholds, which vary by family size, are the ‘‘poverty line’’ used to determine the and so it happened—as it can in a par- be included in the RECORD. number of individuals and families in pov- liamentary government—rather quick- There being no objection, the mate- erty. ly, just as World War I ended. rials were ordered to be printed in the In April of 1997, a member of my staff RECORD, as follows: By Mr. MOYNIHAN (for himself met in Ottawa with the Assistant Chief S. 204 and Mr. KERREY): Statistician of Statistics Canada. He Be it enacted by the Senate and House of Rep- S. 205. A bill to establish a Federal reported that Statistics Canada is resentatives of the United States of America in Commission on Statistical Policy to doing quite well. Decisions about the Congress assembled, study the reorganization of the Federal allocation of resources among statis- SECTION 1. SHORT TITLE. statistical system, to provide uniform tical functions are made at the highest This Act may be cited as the ‘‘Poverty Data Correction Act of 1999’’. safeguards for the confidentiality of in- levels of government because the Chief SEC. 2. REQUIREMENT. formation acquired from exclusively Statistician of Statistics Canada holds (a) IN GENERAL.—Chapter 5 of title 13, statistical purposes, and to improve a position equivalent to Deputy Cabi- United States Code, is amended by adding the efficiency of Federal statistical net Minister. He communicates di- after subchapter V the following: programs and the quality of Federal rectly with Deputy Ministers in other January 19, 1999 CONGRESSIONAL RECORD — SENATE S637 Cabinet Departments. In contrast, in government comprise parts of our na- the Department of Labor itself. The the United States, statistical agencies tional statistical infrastructure. Elev- then-Commissioner of the BLS, Ewan are buried several levels below the Cab- en of these organizations have as their Clague, could not have been more inet Secretaries, so it is difficult for primary function the generation of friendly and supportive. And so were the heads of these statistical agencies data. These 11 organizations are: the statisticians, who undertook to to bring issues to the attention of high- teach me to the extent I was teachable. Date ranking administration officials and Agency Department estab- They even shared professional con- Congress. lished fidences. And so it was that I came to Statistics are part of our constitu- National Agricultural Statistical Service Agriculture ...... 1863 have some familiarity with the field. tional arrangement, which provides for Statistics of Income Division, IRS ...... Treasury ...... 1866 For example, we had just received a Economic Research Service ...... Agriculture ...... 1867 a decennial census that, among other National Center for Education Statistics Education ...... 1867 report on price indexes from a commit- purposes, is the basis for apportion- Bureau of Labor Statistics ...... Labor ...... 1884 tee led by a Nobel laureate, George Bureau of the Census ...... Commerce ...... 1902 ment of membership in the House of Bureau of Economic Analysis ...... Commerce ...... 1912 Stigler. The Committee stressed the Representatives. I quote from article I, National Center for Health Statistics .... Health and Human 1912 importance of accurate and timely sta- Services. section I: Bureau of Justice Statistics ...... Justice ...... 1968 tistics noting that: . . . enumeration shall be made within three Energy Information Administration ...... Energy ...... 1974 The periodic revision of price indexes, and Years after the first meeting of the Congress Bureau of Transportation Statistics ...... Transportation ...... 1991 the almost continuous alterations in details of the United States, and within every subse- of their calculation, are essential if the in- NEED FOR LEGISLATION quent Term of ten Years, in such Manner as dexes are to serve their primary function of they shall be Law direct. President Kennedy once said: measuring the average movements of prices. But, while the Constitution directed Democracy is a difficult kind of govern- While the Final Report of the Advi- that there be a census, there was, ini- ment. It requires the highest qualities of self-discipline, restraints, a willingness to sory Commission To Study The Con- tially, no Census Bureau. The earliest make commitments and sacrifices for the sumer Price Index (The Boskin Com- censuses were conducted by U.S. mar- general interest, and also it requires knowl- mission) focused primarily on the ex- shals. Later on, statistical bureaus in edge. tent to which changes in the CPI over- state governments collected the data, That knowledge often comes from ac- state inflation, the Commission also with a Superintendent of the Census curate statistics. You cannot begin to addressed issues related to the effec- overseeing from Washington. It was solve a problem until you can measure tiveness of Federal statistical pro- not until 1902 that a permanent Bureau it. grams and recommended that: of the Census was created by the Con- This legislation would require the Congress should enact the legislation nec- gress, housed initially in the Interior Commission to conduct a comprehen- essary for the Departments of Commerce and Department. In 1903 the Bureau was sive examination of the current statis- Labor to share information in the interest of transferred to the newly established tical system and focus particularly on improving accuracy and timeliness of eco- Department of Commerce and Labor. whether to create a centralized Federal nomic statistics and to reduce the resources The Statistics of Income Division of consumed in their development and produc- Statistical Service. tion. the Internal Revenue Service, which In September 1996, prior to introduc- was originally an independent body, tion of my first bill to establish a Com- There is, of course, a long history of began collecting data in 1866. It too mission to study the U.S. statistical attempts to reform our nation’s statis- was transferred to the new Department system, I received a letter from nine tical infrastructure. In her invaluable of Commerce and Labor in 1903, but former Chairmen of the Council of Eco- book Organizing to Count, Janet L. then was put in the Treasury Depart- nomic Advisers (CEA) endorsing this Norwood, former Commissioner of the ment in 1913 following ratification of legislation. Excluding two recent BLS, has described efforts to bring the 16th amendment, which gave Con- chairs, who at that time were still some order to the national statistical gress the power to impose an income serving in the Clinton Administration, system, going back to a Commission tax. the signatories include virtually every appointed by the Secretary of the A Bureau of Labor, created in 1884, living former chair of the CEA. While Treasury in 1903 and following through was also initially in the Interior De- acknowledging that the United States to a 1990 Working Group of the Cabinet partment. The first Commissioner, ap- ‘‘possesses a first-class statistical sys- Council for Economic Policy, chaired pointed in 1885, was Colonel Carroll D. tem,’’ these former Chairmen remind by Michael Boskin. One such effort oc- Wright, a distinguished Civil War vet- us that ‘‘problems periodically arise curred in July of 1933 when, by Execu- eran of the New Hampshire Volunteers. under the current system of widely tive Order, President Roosevelt set up A self-trained social scientist, Colonel scattered responsibilities.’’ They con- a Central Statistical Board—organized Wright pioneered techniques for col- clude as follows: by the Secretary of Labor, Frances Perkins, and the sometime Commis- lecting and analyzing survey data on Without at all prejudging the appropriate income, prices and wages. He had pre- measures to deal with these difficult prob- sioner of the Bureau of Labor Statis- viously served as Chief of the Massa- lems, we believe that a thoroughgoing review tics, Isador Lubin. I say sometime be- chusetts Bureau of Statistics, a post he by a highly qualified and bipartisan Commis- cause although Lubin headed the Bu- held for 15 years, and in that capacity sion as provided in your Bill has great prom- reau from 1933–1946, much of his time had supervised the 1880 Federal census ise of showing the way to major improve- was spent ‘‘on leave’’ serving in various in Massachusetts. ments. White House statistical assignments, In 1888, the Bureau of Labor became The letter is signed by: Michael J. including as a special statistical assist- an independent agency. In 1903, it was Boskin, Martin Feldstein, Alan Green- ant to the President. In their fine his- once again made a Bureau, joining span, Paul W. McCracken, Raymond J. tory of the agency, The First Hundred other statistical agencies in the De- Saulnier, Charles L. Schultze, Beryl W. Years of the Bureau of Labor Statis- partment of Commerce and Labor. Sprinkel, Herbert Stein, and Murray tics, Joseph P. Goldberg and William T. When a new Department of Labor was Weidenbaum. Moye write that the Board was then es- formed in 1913, given labor an inde- It happens that this Senator’s asso- tablished by Congress ‘‘in 1935 for a 5- pendent voice—as labor was ‘‘removed’’ ciation with the statistical system in year period to ensure consistency, from the Department of Commerce and the Executive Branch began over three avoid duplication, and promote econ- Labor—what we now know as the Bu- decades ago. I was Assistant Secretary omy in the work of government statis- reau of Labor Statistics was trans- of Labor for Policy and Planning in the tics.’’ ferred to the newly created Depart- administration of President John F. But in most cases little or no action ment of Labor. Kennedy. This was a new position in has been taken on their recommenda- And so it went. Statistical agencies which I was nominally responsible for tions. The result of this inaction has sprung up as needed. And they moved the Bureau of Labor Statistics. I say been an ever expanding statistical sys- back and forth as new executive de- nominally out of respect for the inde- tem. It continues to grow in order to partments were formed. Today, some 89 pendence of that venerable institution, meet new data needs, but with little or different organizations in the Federal which as I noted earlier long predated no regard for the overall objectives of S638 CONGRESSIONAL RECORD — SENATE January 19, 1999 the system. As Norwood notes in her There being no objection, the mate- (2) with increased efficiency comes better book: rials were ordered to be printed in the integration of research methodology, survey design, and economies of scale; The U.S. system has neither the advan- RECORD, as follows: (3) the Chief Statistician must have the au- tages that come from centralization nor the S. 205 thority, personnel, and other resources nec- efficiency that comes from strong coordina- Be it enacted by the Senate and House of Rep- essary to carry out the duties of that office tion in decentralization. As presently orga- resentatives of the United States of America in effectively, including duties relating to sta- nized, therefore, the country’s statistical Congress assembled, tistical forms clearance; and system will be hard pressed to meet the de- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (4) statistical forms clearance at the Office mands of a technologically advanced, in- (a) SHORT TITLE.—This Act may be cited as of Management and Budget should be better creasingly internationalized world in which the ‘‘Federal Commission on Statistical Pol- distinguished from regulatory forms clear- the demand for objective data of high quality icy Act of 1999’’. ance. is steadily rising. (b) TABLE OF CONTENTS.—The table of con- TITLE I—FEDERAL COMMISSION ON In this era of government downsizing tents for this Act is as follows: STATISTICAL POLICY and budget cutting, it is unlikely that Sec. 1. Short title; table of contents. SEC. 101. ESTABLISHMENT. Congress will appropriate more funds Sec. 2. Findings. (a) ESTABLISHMENT.—There is established a for statistical agencies. It is clear that Sec. 3. Sense of the Congress. commission to be known as the ‘‘Federal to preserve and improve the statistical TITLE I—FEDERAL COMMISSION ON Commission on Statistical Policy’’ (in this system we must consider reforming it, STATISTICAL POLICY title referred to as the ‘‘Commission’’). (b) COMPOSITION.—The Commission shall be yet we must not attempt to reform the Sec. 101. Establishment. Sec. 102. Duties of Commission. composed of 16 members as follows: system until we have heard from ex- Sec. 103. Powers. (1) APPOINTMENTS BY PRESIDENT.—Eight perts in the field. Sec. 104. Commission procedures. members appointed by the President from The legislation establishes a Federal Sec. 105. Personnel matters. among individuals who— Commission on Statistical Policy for a Sec. 106. Other administrative provisions. (A) are not officers or employees of the three-year term. The Commission Sec. 107. Termination. United States; and (B)(i) are qualified to serve on the Commis- would consist of 16 members: eight of Sec. 108. Fast-track procedures for statis- tical reorganization bill. sion by virtue of experience relating to sta- whom to be chosen by the President; tistical agencies of the Federal Government; four of whom by the Speaker of the TITLE II—EFFICIENCY AND CONFIDEN- TIALITY OF FEDERAL STATISTICAL or House of Representatives in consulta- SYSTEMS (ii) have expertise relating to organiza- tion with the Majority and Majority tional reorganization, State sources and uses Sec. 201. Short title. of statistical information, statistical analy- Leader; and four of whom by the Presi- Sec. 202. Findings and purposes. sis, or management of complex organiza- dent pro tempore of the Senate in con- Sec. 203. Definitions. tions. sultation with the Majority and Minor- Sec. 204. Statistical Data Centers. Sec. 205. Statistical Data Center responsibil- (2) APPOINTMENTS FROM THE HOUSE OF REP- ity Leader. RESENTATIVES.—Four members appointed by In an initial 18-month period, the ities. Sec. 206. Confidentiality of information. the Speaker of the House of Representatives, Commission would determine whether Sec. 207. Coordination and oversight. in consultation with the majority leader and to consolidate the Federal statistical Sec. 208. Implementing regulations. minority leader of the House of Representa- system, and would also make rec- Sec. 209. Conforming amendments and pro- tives, from among individuals who— ommendations with respect to ways to posed changes in law. (A) are not officers or employees of the achieve greater efficiency in carrying Sec. 210. Effect on other laws. United States; and SEC. 2. FINDINGS. (B)(i) are qualified to serve on the Commis- out Federal statistical programs. If the sion by virtue of experience relating to sta- Commission recommends creation of a The Congress, recognizing the importance of statistical information in the develop- tistical agencies of the Federal Government; newly established independent Federal or ment of national priorities and policies and (ii) are also qualified to serve on the Com- statistical agency, designated as the in the administration of public programs, mission by virtue of expertise relating to or- Federal Statistical Service, the Com- finds the following: ganizational reorganization, State sources mission’s report would contain draft (1) While the demand for statistical infor- and uses of statistical information, statis- legislation incorporating such rec- mation has grown substantially during the tical analysis, or management of complex or- last 30 years, the difficulty of coordinating ommendations. ganizations. planning within the decentralized Federal Over the full term of the Commis- (3) APPOINTMENTS FROM THE SENATE.—Four statistical system has limited the usefulness sion, it would also conduct comprehen- members appointed by the President pro sive studies and submit reports to Con- of statistics in defining problems and deter- tempore of the Senate, in consultation with mining national policies to deal with com- gress that: the majority leader and minority leader of plex social and economic issues. the Senate, from among individuals who— Evaluate the mission of various sta- (2) Coordination and planning among the tistical agencies and the relevance of (A) are not officers or employees of the statistical programs of the Government are United States; and such missions to current and future necessary to strengthen and improve the (B)(i) are qualified to serve on the Commis- needs; quality and utility of Federal statistics and sion by virtue of experience relating to sta- Evaluate key statistics and measures to reduce duplication and waste in informa- tistical agencies of the Federal Government; and make recommendations on ways to tion collected for statistical purposes. or (3) High-quality Federal statistical prod- improve such statistics better serve (ii) are also qualified to serve on the Com- ucts and programs are essential for sound mission by virtue of expertise relating to or- the intended major purposes; business and public policy decisions. Review information technology and ganizational reorganization, State sources (4) The challenge of providing high-quality and uses of statistical information, statis- make recommendations of appropriate statistics has increased because our economy tical analysis, or management of complex or- methods for disseminating statistical and society are more complex, new tech- ganizations. data; and nologies are available, and decisionmakers (c) DEADLINE FOR APPOINTMENT.—Members Compare our statistical system with need more complete and accurate data. shall be appointed to the Commission not the systems of other nations. (5) Maintaining quality of Federal statis- later than 4 months after the date of the en- tical products requires full cooperation be- This legislation is only a first step, actment of this Act. tween Federal statistical agencies and those (d) POLITICAL AFFILIATION.— but an essential one. The Commission persons and organizations that respond to (1) APPOINTMENTS BY PRESIDENT.—Of the will provide Congress with the blue- their requests for information. members of the Commission appointed under print for reform. It will be up to us to (6) Federal statistical products and pro- subsection (b)(1), not more than 4 may be of finally take action after nearly a cen- grams can be improved, without reducing re- the same political party. tury of inattention to this very impor- spondent cooperation, by permitting care- (2) APPOINTMENTS BY SPEAKER OF THE HOUSE tant issue. fully controlled sharing of data with statis- OF REPRESENTATIVES.—Of the members of the I ask unanimous consent the full text tical agencies in a manner that is consistent Commission appointed under subsection with confidentiality commitments made to of the letter from nine former Chair- (b)(2), not more than 2 may be of the same respondents. political party. men of the Council of Economic Ad- SEC. 3. SENSE OF CONGRESS. (3) APPOINTMENTS BY PRESIDENT PRO TEM- viser, a summary of the bill, and the It is the sense of Congress that— PORE.—Of the members of the Commission full text of the bill be included in the (1) a more centralized statistical system is appointed under subsection (b)(3), not more RECORD. integral to efficiency; than 2 may be of the same political party. January 19, 1999 CONGRESSIONAL RECORD — SENATE S639

(e) CHAIRMAN.—The Commission shall se- (2) DRAFT LEGISLATION.—Draft legislation this Act, hold hearings, sit and act at times lect a Chairman from among the members of submitted to Congress under this subsection and places, take testimony, and receive evi- the Commission by a majority vote of all shall be strictly limited to implementation dence as the Commission considers appro- members. of recommendations for the consolidation or priate. (f) CONSULTATION BEFORE APPOINTMENTS.— reorganization of the statistical functions of (b) OBTAINING INFORMATION.—The Commis- In making appointments under subsection Federal agencies. sion may secure directly from any depart- (b), the President, the Speaker of the House (3) PROVISIONS IN DRAFT LEGISLATION.— ment or agency of the United States infor- of Representatives, the minority leader of Draft legislation submitted to Congress mation necessary to enable it to carry out the House of Representatives, the President under this subsection that would establish a this Act. Upon request of the Chairman of pro tempore of the Senate, and the minority Federal Statistical Service shall— the Commission, the head of that depart- leader of the Senate shall consult with ap- (A) provide for an Administrator and Dep- ment or agency shall furnish that informa- propriate professional organizations, includ- uty Administrator of the Federal Statistical tion to the Commission. ing State and local governments. Service, and the creation of other officers as (c) CONTRACT AUTHORITY.—The Commis- (g) PERIOD OF APPOINTMENT; VACANCIES.— appropriate; and sion may contract with and compensate gov- Members shall be appointed for the life of (B) contain a provision designating the Ad- ernment and private agencies or persons the Commission. Any vacancy in the Com- ministrator as a member of the Interagency without regard to section 3709 of the Revised mission shall not affect its powers, but shall Council on Statistical Policy established Statutes (41 U.S.C. 5). under section 3504(e)(8) of title 44, United be filled in the same manner as the original SEC. 104. COMMISSION PROCEDURES. appointment. States Code. (d) OTHER DUTIES OF THE COMMISSION.— (a) MEETINGS.—The Commission shall meet SEC. 102. DUTIES OF COMMISSION. (1) IN GENERAL.—The Commission shall at the call of the Chairman or a majority of (a) STUDY AND REPORT.—Not later than 18 also conduct comprehensive studies and sub- its members. months after the date of enactment of this mit reports to Congress on all matters relat- (b) QUORUM.—Eight members of the Com- Act, the Commission shall study and submit ing to the Federal statistical infrastructure, mission shall constitute a quorum but a less- to Congress and the President a written re- including longitudinal surveys conducted by er number may hold hearings. port and draft legislation as necessary and private agencies and partially funded by the (c) DELEGATION OF AUTHORITY.—Any mem- appropriate on the Federal statistical sys- Federal Government for the purpose of iden- ber or agent of the Commission may, if au- tem including— tifying opportunities to improve the quality thorized by the Commission, take any action (1) recommendations on whether the Fed- of statistics in the United States. which the Commission is authorized to take eral statistical system could be reorganized (2) INCLUSIONS.—Studies under this sub- by this Act. by consolidating the statistical functions of section shall include— (d) VOTING.—The Commission shall adopt agencies that carry out statistical programs; (A) a review and evaluation of the mission any recommendation by a vote of a majority (2) recommendations on how the consolida- of various statistical agencies and the rel- of its members. tion described in paragraph (1) may be evance of such missions to current and fu- SEC. 105. PERSONNEL MATTERS. achieved without disruption in the release of ture needs; (a) PAY OF MEMBERS.—Members of the statistical products; (B) an evaluation of key statistics and Commission appointed under paragraphs (3) any other recommendations regarding measures and recommendations on ways to (2)(B), (3), or (4) of section 101(b) shall be en- how the Federal statistical system could be improve such statistics so that the statistics titled to receive the daily equivalent of the reorganized to achieve greater efficiency, better serve the intended major purposes; rate of basic pay for level IV of the Execu- improve quality, timeliness, and adapt- (C) a review of interagency coordination of tive Schedule under section 5315 of title 5, ability to change in carrying out Federal statistical data and recommendations of United States Code, for each day (including statistical programs; methods to standardize collection procedures travel time) during which they are engaged (4) recommendations on possible improve- and surveys, as appropriate, and presen- in the actual performance of duties vested in ments to procedures for the release of major tation of data throughout the Federal sys- the Commission. economic and social indicators by the United tem; (b) TRAVEL EXPENSES.—Each member of States; and (D) a review of information technology and the Commission shall receive travel ex- (5) recommendations to ensure require- recommendations of appropriate methods for penses, including per diem in lieu of subsist- ments that State data and information shall disseminating statistical data, with special ence, in accordance with sections 5702 and be maintained in a confidential, consistent, emphasis on resources such as the Internet 5703 of title 5, United States Code. and comparable manner. that allow the public to obtain information (c) STAFF.—The Commission may appoint (b) PRESIDENTIAL REVIEW.— in a timely and cost-effective manner; and fix the pay of personnel as it considers (1) IN GENERAL.— (E) an identification and examination of appropriate, including an Executive Direc- (A) TIME PERIOD FOR REVIEW.—Not later issues regarding individual privacy in the tor. than 15 days after the receipt of the report context of statistical data; (d) APPLICABILITY OF CERTAIN CIVIL SERV- (including any draft legislation) under sub- (F) a comparison of the United States sta- ICE LAWS.—Staff of the Commission may be section (a), the President shall approve or tistical system to statistical systems of appointed without regard to the provisions disapprove of the report. other nations for the purposes of identifying of title 5, United States Code, governing ap- (B) APPROVAL OR INACTION.—If the Presi- best practices; pointments in the competitive service, and dent approves the report, the Commission (G) a consideration of the coordination of may be paid without regard to the provisions shall submit the report to Congress on the statistical data with other nations and inter- of chapter 51 and subchapter III of chapter 53 day following such approval. If the President national agencies, such as the Organization of that title relating to classification and does not disapprove the report, the Commis- for Economic Cooperation and Development; General Schedule pay rates, except that an sion shall submit the report to Congress on and individual so appointed may not receive pay the day following the 15-day period described (H) recommendations regarding the presen- in excess of the highest basic rate of pay es- under subparagraph (A). tation to the public of statistical data col- tablished for the Senior Executive Service (C) DISAPPROVAL.—If the President dis- lected by Federal agencies, and standards of under section 5382 of such title. approves the report, the President shall note accuracy for statistical data used by Federal SEC. 106. OTHER ADMINISTRATIVE PROVISIONS. his specific objections and any suggested agencies, including statistical data relating changes to the Commission. (a) POSTAL AND PRINTING SERVICES.— The to— Commission may use the United States (D) FINAL REPORT AFTER DISAPPROVAL.— (i) the national poverty level and county The Commission shall consider any objec- mails and obtain printing and binding serv- poverty levels in the United States; ices in the same manner and under the same tions and suggested changes submitted by (ii) the Consumer Price Index; the President and may modify the report conditions as other departments and agen- (iii) the gross domestic product; and cies of the United States. based on those objections and suggested (iv) other indicators of economic and social (b) ADMINISTRATIVE SUPPORT SERVICES.— changes. Not later than 10 days after receipt activity, including marriage and divorce in of the President’s disapproval under subpara- Upon the request of the Commission, the Ad- the United States. ministrator of General Services shall provide graph (C), the Commission shall submit the (e) DEFINITION OF FEDERAL STATISTICAL to the Commission, on a reimbursable basis, final report (as modified if modified) to Con- SERVICE.—As used in this section, the term gress. ‘‘Federal Statistical Service’’ means an en- the administrative support services nec- (c) STATISTICAL REORGANIZATION BILL.— tity established after the date of the enact- essary for the Commission to carry out its (1) IN GENERAL.—If the written report sub- ment of this Act as an independent agency in responsibilities under this Act. mitted to Congress under subsection (a) con- the executive branch, the purpose of which is (c) EXPERTS AND CONSULTANTS.—The Com- tains recommendations on the consolidation to carry out Federal statistical programs mission may procure temporary and inter- of the Federal statistical functions of the and to which the statistical functions of Fed- mittent services under section 3109(b) of title United States into a Federal Statistical eral statistical agencies are transferred. 5, United States Code. Service, the report shall contain draft legis- SEC. 103. POWERS. SEC. 107. TERMINATION. lation incorporating such recommendations (a) HEARINGS AND SESSIONS.—The Commis- The Commission shall terminate 3 years under subsection (a)(1). sion may, for the purpose of carrying out after the date of enactment of this Act. S640 CONGRESSIONAL RECORD — SENATE January 19, 1999

SEC. 108. EXPEDITED PROCEDURES FOR STATIS- (g) CONFERENCE.—In the Senate, a motion tion under section 552a of title 5, United TICAL REORGANIZATION BILL. to elect or to authorize the appointment of States Code (popularly known as the ‘‘Pri- (a) RULES OF HOUSE OF REPRESENTATIVES conferees shall not be debatable. vacy Act’’) or section 552 of such title (popu- AND SENATE.—This section is enacted by the SEC. 109. AUTHORIZATION OF APPROPRIATIONS. larly known as the ‘‘Freedom of Information Congress— There is authorized to be appropriated for Act’’) are retained without change. (1) as an exercise of the rulemaking power the Commission such sums as may be nec- (8) To establish consistent procedural safe- of the House of Representatives and the Sen- essary to carry out the functions of the Com- guards for records disclosed exclusively for ate, respectively, and as such it shall be con- mission. statistical purposes, including both public sidered as part of the rules of each House, re- TITLE II—EFFICIENCY AND CONFIDEN- input and an oversight process to ensure fair spectively, or of that House to which it spe- TIALITY OF FEDERAL STATISTICAL SYS- information practices. cifically applies, and shall supersede other TEMS SEC. 203. DEFINITIONS. rules only to the extent that they are incon- In this title: sistent with this section; and SEC. 201. SHORT TITLE. (1) The term ‘‘agency’’ means— (2) with full recognition of the constitu- This title may be cited as the ‘‘Statistical (A) any ‘‘executive agency’’ as defined tional right of either House to change the Confidentiality Act’’. under section 102 of title 31, United States rules (so far as relating to such House) at SEC. 202. FINDINGS AND PURPOSES. Code; or any time, in the same manner and to the (a) FINDINGS.—Congress finds the follow- same extent as in the case of any other rule ing: (B) any ‘‘agency’’ as defined under section of that House. (1) High quality Federal statistical prod- 3502 of title 44, United States Code. (b) DEFINITION.—As used in this section, ucts and programs are essential for sound (2) The term ‘‘agent’’ means a person des- the term ‘‘statistical reorganization bill’’ business and public policy decisions. ignated by a Statistical Data Center to per- means only a bill of either House of (2) The challenge of providing high quality form, either in the capacity of a Federal em- Congress— statistics has increased because the Nation’s ployee or otherwise, exclusively statistical (1) that is identical to the draft legislation economy and society are more complex, new activities authorized by law under the super- submitted to Congress by the Commission technologies are available, and decision vision or control of an officer or employee of under section 102(b); and makers need more complete and accurate that Statistical Data Center, and who has (2) that is introduced as provided in sub- data. agreed in writing to comply with all provi- section (c). (3) Maintaining quality requires full co- sions of law that affect information acquired (c) INTRODUCTION AND REFERRAL.—Within operation between Federal statistical agen- by that Statistical Data Center. 15 legislative days after the Commission sub- cies and those persons and organizations (3) The term ‘‘identifiable form’’ means mits to Congress legislation under section that respond to requests for information. any representation of information that per- 102(b), such legislation shall be introduced (4) Federal statistical products and pro- mits information concerning individual sub- (by request) in the House by the Majority grams can be improved, without reducing re- jects to be reasonably inferred by either di- Leader of the House of Representatives and spondent cooperation, by permitting care- rect or indirect means. shall be introduced (by request) in the Sen- fully controlled sharing of data with statis- (4) The term ‘‘nonstatistical purpose’’ ate by the Majority Leader of the Senate. tical agencies in a manner that is consistent means any purpose that is not a statistical Such bills shall be referred to the appro- with confidentiality commitments made to purpose, and includes any administrative, priate committee in each House. respondents. regulatory, adjudicatory, or other purpose (d) PERIOD FOR COMMITTEE AND FLOOR CON- (b) PURPOSES.—The purposes of this title that affects the rights, privileges, or benefits SIDERATION.— are the following: of a particular identifiable respondent. (1) DISCHARGE.—If the committee of either (1) To provide that individually identifi- (5) The term ‘‘respondent’’ means a person House to which a statistical reorganization able information furnished either directly or who or organization that— bill has been referred has not reported it at indirectly to designated statistical agencies (A) is requested or required to supply infor- the close of the sixtieth day after its intro- for exclusively statistical purposes shall not mation to an agency; duction, such committee may be discharged be disclosed in individually identifiable form (B) is the subject of information requested from further consideration of the bill upon a by such agencies for any other purpose with- or required to be supplied to an agency; or petition supported in writing in the Senate out the informed consent of the respondent. (C) provides that information to an agency. by 10 Members of the Senate and in the (2) To prohibit the use by such agencies, in (6) The term ‘‘statistical activities’’— House of Representatives by 40 Members of individually identifiable form, of any infor- (A) means the collection, compilation, the House of Representatives and it shall be mation collected, compiled, or maintained processing, or analysis of data for the pur- placed on the appropriate calendar. solely for statistical purposes under Federal pose of describing or making estimates con- (2) DAYS.—For purposes of this subsection, authority, to make any decision or take any cerning the whole or relevant groups or com- in computing a number of days in either action directly affecting the rights, benefits, ponents within, the economy, society, or the House, there shall be excluded the days on and privileges of the person to whom the in- natural environment; and which that House is not in session because of formation pertains, except with the person’s (B) includes the development of methods or an adjournment of more than 3 days to a day consent. resources that support those activities, such certain or an adjournment of the Congress (3) To reduce the reporting burden, dupli- as measurement methods, models, statistical sine die. cation, and expense imposed on the public by classifications, or sampling frames. (e) FLOOR CONSIDERATION IN THE HOUSE.—A (7) The term ‘‘statistical purpose’’— motion in the House of Representatives to permitting interagency exchange, solely for (A) means the description, estimation, or proceed to the consideration of a statistical statistical purposes, of individually identifi- analysis of the characteristics of groups reorganization bill shall be highly privileged able information needed for statistical pro- without regard to the identities of individ- except that a motion to proceed to consider grams, and to establish secure conditions for may only be made on the second legislative such exchanges. uals or organizations that comprise such day after the calendar day on which the (4) To reduce the cost and improve the ac- groups; and Member making the motion announces to curacy of statistical programs by facilitat- (B) includes the development, implementa- the House his intention to do so. The motion ing cooperative projects between statistical tion, or maintenance of methods, technical to proceed to consider is not debatable. An agencies, and to create a secure environment or administrative procedures, or information amendment to the motion shall not be in where expertise and data resources that re- resources that support such purposes. order, nor shall it be in order to move to re- side in different agencies can be brought to- SEC. 204. STATISTICAL DATA CENTERS. consider the vote by which the motion is gether to address the information needs of (a) IN GENERAL.—Each of the following is agreed to or disagreed to. the public. designated as a Statistical Data Center: (f) FLOOR CONSIDERATION IN THE SENATE.— (5) To reduce the risk of unauthorized dis- (1) The Bureau of Economic Analysis in the (1) MOTION TO PROCEED.—On or after the closure of information maintained solely for Department of Commerce. fifth day after the date on which a statistical statistical purposes by designating specific (2) The Bureau of the Census in the Depart- reorganization bill or conference report is statistical agencies that are authorized to ment of Commerce. placed on the Senate calendar, it shall be in receive otherwise privileged information for (3) The Bureau of Labor Statistics in the order for any Senator to make a motion to such purposes from other agencies, and to Department of Labor. proceed to consideration of the bill or con- prescribe specific conditions and procedures (4) The National Agricultural Statistics ference report. The motion shall be privi- that must be complied with in any such ex- Service in the Department of Agriculture. leged and not debatable. An amendment to change. (5) The National Center for Education Sta- the motion shall not be in order, nor shall it (6) To establish a consistent basis under tistics in the Department of Education. be in order to move to reconsider the vote by the requirements of section 552 of title 5, (6) The National Center for Health Statis- which the motion is agreed to or disagreed United States Code (popularly known as the tics in the Department of Health and Human to. ‘‘Freedom of Information Act’’) for exempt- Services. (2) FINAL PASSAGE.—Immediately following ing a defined class of statistical information (7) The Energy End Use and Integrated the conclusion of the debate on a statistical from compulsory disclosure. Statistics Division of the Energy Informa- reorganization bill or conference report, the (7) To ensure that existing avenues for pub- tion Administration in the Department of vote on final passage shall occur. lic access to administrative data or informa- Energy. January 19, 1999 CONGRESSIONAL RECORD — SENATE S641 (8) The Division of Science Resources Stud- (3) the data or information are to be used Data Center or an agency supplying data or ies in the National Science Foundation. exclusively for statistical purposes by the information to a Statistical Data Center. (b) DESIGNATION.—In the case of a reorga- Statistical Data Center or Centers; and (2) REPORT TO CONGRESS.—The Director of nization that eliminates, or substantially al- (4) the disclosure is made under the terms the Office of Management and Budget shall ters the mission or functions of, an agency of a written agreement between a Statistical include a summary of all reports submitted or agency component listed under subsection Data Center or Centers and the agency sup- to the Director under this subsection and (a), the Director of the Office of Management plying information as authorized by this sub- any actions taken by the Director to ad- and Budget, after consultation with the head section, specifying— vance the purposes of this title in the Of- of the agency proposing the reorganization, (A) the data or information to be disclosed; fice’s annual report to the Congress on sta- may designate an agency or agency compo- (B) the purposes for which the data or in- tistical programs. nent that shall serve as a successor Statis- formation are to be used; and (c) REVIEW AND APPROVAL OF RULES.—The tical Data Center under the terms of this (C) appropriate security procedures to safe- Director of the Office of Management and title, if the Director determines that— guard the confidentiality of the data or in- Budget shall review and approve any rules (1) the primary activities of the proposed formation. proposed pursuant to this title for consist- Statistical Data Center are statistical ac- (d) AGREEMENTS.—Data or information ency with this title and chapter 35 of title 44, tivities specifically authorized by law; supplied to a Statistical Data Center under United States Code. (2) the successor agency or component an agreement authorized under subsection SEC. 208. IMPLEMENTING REGULATIONS. would participate in data sharing activities (b)(4) shall not be disclosed in identifiable (a) IN GENERAL.—Subject to subsections (b) that significantly improve Federal statis- form by that Center for any purpose, except and (c), the Director of the Office of Manage- tical programs or products; that data or information collected directly ment and Budget, or the head of a Statistical (3) the successor agency or component has by any party to such agreement may be dis- Data Center or of an agency providing infor- demonstrated its capability to protect the closed to any other party to that agreement mation to a Center, may promulgate such individual confidentiality of any shared for exclusively statistical purposes specified rules as may be necessary to implement this data; and in that agreement. title. (4) the statutes that apply to the proposed (e) NOTICE.—Whenever a written agreement (b) CONSISTENCY.—The Director of the Of- Statistical Data Center are not inconsistent authorized under subsection (c)(4) concerns fice of Management and Budget shall pro- with this title. mulgate rules or provide such other guidance (c) NOTICE AND COMMENT.—The head of an data that respondents were required by law agency seeking designation as a successor to report and the agreement contains terms as may be needed to ensure consistent inter- under this section shall, after consultation that could not reasonably have been antici- pretation of this title by the affected agen- with the Director of the Office of Manage- pated by respondents who provided the data cies. (c) AGENCY RULES.—Rules governing dis- ment and Budget, provide public notice and that will be disclosed, or upon the initiative an opportunity to comment on the con- of any party to such an agreement, or when- closures of information authorized by this sequences of such designation and on those ever ordered by the Director of the Office of title shall be promulgated by the agency determinations upon which the designation Management and Budget, the terms of such that originally collected the information, is proposed to be based. agreement shall be described in a public no- subject to the review and approval required (d) PROHIBITION AGAINST INCREASE IN NUM- tice issued by the agency that intends to dis- under this title. BER OF CENTERS.—No action taken under this close the data. Such notice shall allow a SEC. 209. CONFORMING AMENDMENTS AND PRO- section shall increase the number of Statis- minimum of 60 days for public comment be- POSED CHANGES IN LAW. tical Data Centers authorized by this title. fore such agreement shall take effect. The (a) DEPARTMENT OF COMMERCE.— SEC. 205. STATISTICAL DATA CENTER RESPON- Director shall be fully apprised of any issues (1) The first section of the Act of January SIBILITIES. raised by the public and may suspend the ef- 27, 1938 (15 U.S.C. 176a; 52 Stat. 8) is amended The Statistical Data Centers shall— fect of such an agreement to permit modi- in the second sentence by striking ‘‘The’’ (1) identify opportunities to eliminate du- fications responsive to public comments. and inserting ‘‘Except as provided in the Sta- plication and otherwise reduce reporting (f) FOIA AND PRIVACY ACT.—The disclosure tistical Confidentiality Act, the’’. burden and cost imposed on the public by of data or information by an agency under (2)(A) Chapter 10 of title 13, United States sharing information for exclusively statis- subsection (c) shall in no way alter the re- Code, is amended by adding after section 401 tical purposes; sponsibility of that agency under other stat- the following: (2) enter into joint statistical projects to utes, including sections 552 and 552a of title ‘‘§ 402. Exchange of census information with improve the quality and reduce the cost of 5, United States Code, for the disclosure or Statistical Data Centers statistical programs; withholding of the same or similar informa- ‘‘The Bureau of the Census is authorized to (3) safeguard the confidentiality of individ- tion retained by that agency. provide data collected under this title to ually identifiable information acquired for (g) DISCLOSURE PROVISIONS OF OTHER Statistical Data Centers (Centers) named in statistical purposes by assuring its physical LAWS.—If information obtained by an agency the Statistical Confidentiality Act, or their security and by controlling access to, and is released to another agency under this sec- successors designated under the terms of uses made of, such information; and tion, all provisions of law (including pen- that Act.’’. (4) respect the rights and privileges of the alties) that relate to the unlawful disclosure (B) The table of sections for chapter 10 of public by observing and promoting fair infor- of information apply to the officers, employ- title 13, United States Code, is amended by mation practices. ees, or agents of the agency to which infor- adding after the item relating to section 401 SEC. 206. CONFIDENTIALITY OF INFORMATION. mation is released to the same extent and in the following: (a) IN GENERAL.—Data or information ac- the same manner as the provisions apply to ‘‘402. Exchange of census information with quired by a Statistical Data Center for ex- the officers and employees of the agency Statistical Data Centers.’’. clusively statistical purposes shall be used which originally obtained the information. (b) DEPARTMENT OF ENERGY.— only for statistical purposes. Such data or The officers, employees, and agents of the (1) Section 205 of the Department of En- information shall not be disclosed in identi- agency to which the information is released, ergy Organization Act (42 U.S.C. 7135) is fiable form for any other purpose without in addition, shall be subject to the same pro- amended by adding after subsection (l) the the informed consent of the respondent. visions of law, including penalties, relating (b) RULE DISTINGUISHING DATA OR INFORMA- following new subsection: to the unlawful disclosure of information ‘‘(m)(1)(A) The Administrator shall des- TION.—If a Statistical Data Center is author- that would apply to officers and employees ized by any other statute to collect data or ignate an organizational unit to conduct sta- of that agency if the information had been tistical activities pertaining to energy end information for nonstatistical purposes, the collected directly by that agency. head of the Statistical Data Center shall use consumption information. Using proce- clearly distinguish such data or information SEC. 207. COORDINATION AND OVERSIGHT. dures authorized by the Statistical Confiden- by rule. Such rule shall provide for fully in- (a) IN GENERAL.—The Director of the Office tiality Act, the Administrator shall ensure forming the respondents requested or re- of Management and Budget shall coordinate the security, integrity, and confidentiality quired to supply such data or information of and oversee the confidentiality and disclo- of the information that has been submitted such nonstatistical uses before collecting sure policies established by this title. in identifiable form and supplied exclusively such data or information. (b) REPORT OF DISCLOSURE AGREEMENTS.— for statistical purposes either directly to the (c) DISCLOSURE.—Data or information may (1) REPORT TO THE OFFICE OF MANAGEMENT Administrator or by other Government agen- be disclosed by an agency to 1 or more Sta- AND BUDGET.—The head of a Statistical Data cies. tistical Data Centers, if— Center shall report to the Office of Manage- ‘‘(B) To carry out this section, the Admin- (1) the disclosure and use are not inconsist- ment and Budget— istrator shall establish procedures for the ent with any provision of law or Executive (A) each disclosure agreement entered into disclosure of these data to Statistical Data order that explicitly limit the statistical under this title; Centers for statistical purposes only consist- purposes for which such data or information (B) the results of any review of informa- ent with the Paperwork Reduction Act and may be used; tion security undertaken at the request of the Statistical Confidentiality Act. (2) the disclosure is not prohibited by law the Office of Management and Budget; and ‘‘(2)(A) A person may not publish, cause to or Executive order in the interest of national (C) the results of any similar review under- be published, or otherwise communicate, sta- security; taken on the initiative of the Statistical tistical information designated in paragraph S642 CONGRESSIONAL RECORD — SENATE January 19, 1999 (1) in a manner that identifies any respond- ignate as an agent of the Center (within the (2) by striking ‘‘shall be fined not more ent. meaning of section 203(2) of the Statistical than $1,000’’ and inserting ‘‘shall be fined ‘‘(B) A person may not use statistical in- Confidentiality Act) an individual— under this title’’. formation designated in paragraph (1) for a ‘‘(A) who is not otherwise an employee, of- SEC. 210. EFFECT ON OTHER LAWS. nonstatistical purpose. ficial, or agent of the Center; and (a) TITLE 44, U.S.C.—This title, including ‘‘(C) The identity of a respondent who sup- ‘‘(B) who enters into a written agreement the amendments made by this title, does not plies, or is the subject of, information col- with the Director specifying terms and con- diminish the authority under section 3510 of lected for statistical purposes— ditions for sharing of statistical information. title 44, United States Code, of the Director ‘‘(i) may not be disclosed through any ‘‘(2) EFFECT OF DESIGNATION.—An individ- of the Office of Management and Budget to process, including disclosure through legal ual designated as an agent of the Center pur- direct, and of an agency to make, disclosures process, unless the respondent consents in suant to paragraph (1) shall be subject to all writing; that are not inconsistent with any applicable restrictions on the use and disclosure of sta- law. ‘‘(ii) may not be disclosed to the public, tistical information obtained by the individ- unless information has been transformed (b) STATE LAW.—Nothing in this Act shall ual under the agreement specified in para- be construed to abrogate applicable State into a statistical or aggregate form that does graph (1)(B), and to all civil and criminal not allow the identification of the respond- law regarding the confidentiality of data col- penalties applicable to violations of such re- lected by the States. ent who supplied the information or who is strictions, including penalties under section the subject of that information; and (c) FOIA.—Data or information acquired 1905 of title 18, United States Code, that ‘‘(iii) may not, without the written consent for exclusively statistical purposes as pro- would apply to the individual if an employee of the respondent, be admitted as evidence or vided in section 206 is exempt from manda- of the Center.’’. used for any purpose in an action, suit, or tory disclosure under section 552 of title 5, (d) DEPARTMENT OF LABOR.—The Commis- United States Code, pursuant to section other judicial or administrative proceeding. sioner of Labor Statistics shall be authorized ‘‘(D) Any person who violates subpara- 552(b)(3) of such title. to designate agents, as defined under section graphs (2)(A), (B), or (C), upon conviction, 203(2) of this title. shall be fined under title 18, United States SUMMARY OF THE FEDERAL COMMISSION ON (e) NATIONAL SCIENCE FOUNDATION.—Sec- STATISTICAL POLICY ACT OF 1999 1 Code, imprisoned not more than 1 year, or tion 14 of the National Science Foundation both. Act of 1950 (42 U.S.C. 1873) is amended— OVERVIEW ‘‘(E) For purposes of this subsection: (1) by striking the paragraph following the The Bill establishes a Federal Commission ‘‘(i) The term ‘person’ has the meaning heading of subsection (i) and inserting the on Statistical Policy to study the reorga- given the term in section 1 of title 1, United nization of the Federal statistical system, States Code, but also includes a local, State, following: ‘‘Information supplied to the Foundation and provides uniform safeguards for the con- or Federal entity or officer or employee of a or its contractor in survey forms, question- fidentiality of information acquired exclu- local State or Federal entity. naires, or similar instruments for purposes sively for statistical purposes. ‘‘(ii) The terms ‘statistical activities’, of section 3(a) (5) or (6) by an individual, by ‘identifiable form’, ‘statistical purpose’, FINDINGS an industrial or commercial organization, or ‘nonstatistical purpose’, and ‘respondent’ The Congress, recognizing the importance by an educational or academic institution have the meaning given those terms in sec- of statistical information in the develop- that has received a pledge of confidentiality tion 203 of the Statistical Confidentiality from the Foundation, may not be disclosed ment of national priorities and policies and Act. to the public unless the information has been in the administration of public programs ‘‘(3) Statistical information designated in finds that: the decentralized Federal statis- paragraph (1) is exempt from disclosure transformed into statistical or abstract for- mats that do not allow the identification of tical system has limited the usefulness of under sections 205(f) and 407 of the Depart- statistics in defining problems and determin- ment of Energy Organization Act and para- the supplier. Such information shall be used in identifiable form only for statistical pur- ing national policies to deal with complex graphs 12, 20, and 59 of the Federal Energy social and economic issues; coordination is Administration Act of 1974, or any other law poses as defined in the Statistical Confiden- tiality Act. The names of individuals and or- necessary to strengthen and improve the which requires disclosure of that informa- quality of statistics, and to reduce duplica- tion.’’. ganizations supplying such information may not be disclosed to the public.’’; and tion and waste; high-quality Federal statis- (2) Section 205(f) of the Department of En- tics are essential for sound business and pub- ergy Organization Act (42 U.S.C. 7135) is (2) by redesignating subsection (j) as sub- section (k) and inserting the following new lic policy decisions; the challenge of provid- amended by inserting ‘‘, excluding informa- ing high-quality statistics has increased be- tion designated solely for statistical pur- subsection after subsection (i): ‘‘(j) OBLIGATIONS OF RESEARCHERS.—In sup- cause of the complexity of our economy and poses under subsection (m)(1),’’ after ‘‘analy- society and because of the need for more ac- sis’’. port of functions authorized by section 3(a) (5) or (6), the Foundation may designate, at curate information; maintaining the quality (3) Section 407 of the Department of En- of Federal statistics requires cooperation be- ergy Organization Act (42 U.S.C. 7177a) is its discretion, authorized persons, including employees of Federal, State, or local agen- tween the Federal statistical agencies and amended by inserting ‘‘, excluding informa- respondents to Federal statistical surveys; tion designated solely for statistical pur- cies (including local educational agencies) and employees of private organizations who and Federal statistics may be improved by poses under subsection (m)(1),’’ after ‘‘infor- data sharing among the statistical agencies mation’’. may have access, for exclusively statistical purposes as defined in the Statistical Con- in a controlled manner that protects the (4) The Federal Energy Administration Act confidentiality promised to respondents. of 1974 is amended— fidentiality Act, to identifiable information (A) in section 12 (15 U.S.C. 771), by adding collected pursuant to subsection (a) (5) or (6) SENSE OF THE CONGRESS after subsection (f) the following new sub- of this title. No such person may— The bill expresses the Sense of Congress section: ‘‘(1) publish information collected under that: A more centralized statistical system ‘‘(g) This section does not apply to infor- section 3(a) (5) or (6) in such a manner that is integral to efficiency; Increased efficiency mation designated solely for statistical pur- either an individual, an industrial or com- would result in better integration of re- poses under section 205(m)(1) of the Depart- mercial organization, or an educational or search methodology, survey design and eco- ment of Energy Organization Act.’’; academic institution that has received a nomics of scale; and The Chief Statistician (B) in section 20(a)(3) (15 U.S.C. 779), by in- pledge of confidentiality from the Founda- of the Office of Management and Budget serting ‘‘, excluding information designated tion can be specifically identified; (OMB) must have the authority, personnel solely for statistical purposes under sub- ‘‘(2) permit anyone other than individuals and other resources necessary to carry out section (m)(1) of the Department of Energy authorized by the Foundation to examine in the duties. identifiable form data relating to an individ- Organization Act (42 U.S.C. 7135)’’ after ‘‘in- TITLE I—FEDERAL COMMISSION ON STATISTICAL ual, to an industrial or commercial organiza- formation’’; and POLICY ESTABLISHMENT (C) in section 59 (15 U.S.C. 790h), by insert- tion, or to an educational or academic insti- A commission is established which is to be ing ‘‘, excluding information designated sole- tution that has received a pledge of confiden- known as the ‘‘Federal Commission on Sta- ly for statistical purposes under subsection tiality from the Foundation; or tistical Policy.’’ (m)(1) of the Department of Energy Organi- ‘‘(3) knowingly and willfully request or ob- The Commission shall be composed of 16 zation Act (42 U.S.C 7135)’’ after ‘‘informa- tain any confidential information described members: eight to be appointed by the Presi- tion’’. in subsection (i) from the Foundation under dent; four to be appointed by the Speaker of (c) DEPARTMENT OF HEALTH AND HUMAN false pretenses. the House of Representatives in consultation SERVICES.—Section 306 of the Public Health Any person who violates these restrictions Service Act (42 U.S.C. 242k) is amended by shall be guilty of a misdemeanor and fined with the Majority and Minority Leader; and adding at the end the following new sub- not more than $10,000.’’. four to be appointed by the President pro section: (f) DISCLOSURE PENALTIES.—Section 1905 of tempore of the Senate in consultation with ‘‘(o) SHARING OF IDENTIFYING INFORMATION title 18, United States Code, is amended— the Majority and Minority Leader. FOR STATISTICAL PURPOSES.— (1) by inserting ‘‘, or agent of a Statistical ‘‘(1) IN GENERAL.—The Director may, sub- Data Center as defined in the Statistical 1 Prepared by the staff of Senator Daniel Patrick ject to the provisions of paragraph (2), des- Confidentiality Act,’’ after ‘‘thereof’’; and Moynihan, 1/19/99. January 19, 1999 CONGRESSIONAL RECORD — SENATE S643

The Commission would have a term of 36 SEPTEMBER 23, 1996. THE CHIP DATA AND EVALUATION IMPROVEMENT months from the date of enactment. Hon. DANIEL P. MOYNIHAN, ACT OF 1999 DUTIES OF THE COMMISSION Hon. J. ROBERT KERRY, Mr. MOYNIHAN. Mr. President, U.S. Senate, Washington, DC. Within 18 months of its appointment, the today I am introducing with my col- DEAR SENATORS MOYNIHAN AND KERRY: All league Senator CHAFEE the CHIP Data Commission shall study and submit to Con- of us are former Chairmen of the Council of gress a written report on Federal statistics Economic Advisers. We write to support the and Evaluation Improvement Act of that makes recommendations on: whether basic objectives and approach of your Bill to 1999. This legislation would ensure the Federal statistical system could be reor- establish the Commission to Study the Fed- comparable data and an adequate eval- ganized by consolidating the statistical func- eral Statistical System. uation of children’s health coverage tions of agencies that carry out statistical The United States possesses a first-class programs; how such consolidation could be under the new Children’s Health Insur- statistical system. All of us have in the past ance Program (CHIP) and Medicaid. done without disruption in the release of sta- relied heavily upon the availability of rea- tistical products; whether functions of other sonably accurate and timely federal statis- In 1997, CHIP was established to pro- Federal agencies that carry out statistical tics on the national economy. Similarly, our vide health coverage for low-income programs could be transferred to the Federal professional training leads us to recognize uninsured children. The Balanced Statistical Service; any other issues relating how important a good system of statistical Budget Act of 1997 provided $48 billion to the reorganization of Federal statistical information is for the efficient operations of over ten years, mostly in the form of a programs; and possible improvements in pro- our complex private economy. But we are block grant, for states to develop chil- cedures for the release of major economic also painfully aware that important prob- dren’s health insurance programs. and social indicators. lems of bureaucratic organization and meth- If the written report of the Commission odology need to be examined and dealt with New York and other states pioneered contains recommendations on the consolida- if the federal statistical system is to con- expanded children’s health programs tion of the Federal statistical functions of tinue to meet essential public and private well before the enactment of CHIP. the United States into a newly established needs. With new federal CHIP funding, more independent Federal agency, designated as All of us have particular reason to remem- states are beginning to develop their the Federal Statistical Service, the report ber the problems which periodically arise own programs. To date, 48 states have shall contain draft legislation incorporating under the current system of widely scattered CHIP plans that have been approved by responsibilities. Instead of reflecting a bal- those recommendations. The Commission the Health Care Financing Administra- should also make recommendations for ance among the relative priorities of one sta- nominations for the appointment of an Ad- tistical collection effort against others, sta- tion, with most just beginning to im- ministrator and Deputy Administrator of the tistical priorities are set in a system within plement their programs. We await re- Federal Statistical Service. which individual Cabinet Secretaries rec- ports on the effectiveness of their ef- During the 36 month term of the Commis- ommend budgetary tradeoffs between their forts to cover the nation’s uninsured sion, it would also be responsible for con- own substantive programs and the statistical children. operations which their departments, some- ducting comprehensive studies, and submit- THE NEED FOR DATA ting reports to Congress on all matters relat- times by historical accident, are responsible for collecting. Moreover, long range planning Implementing their programs is the ing to the Federal statistical infrastructure first challenge before the states. For including: an evaluation of the mission of of improvements in the federal statistical various statistical agencies and the rel- system to meet the changing nature and the Federal government, the first chal- evance of such missions to current and fu- needs of the economy is hard to organize in lenge clearly will be to track the expe- ture needs; a review of information tech- the present framework. The Office of Man- rience of children and of the CHIP pro- nology and recommendations of appropriate agement and Budget and the Council of Eco- grams. We will need data to answer methods for disseminating statistical data; nomic Advisers put a lot of effort into trying some basic questions: Is the number of to coordinate the system, often with success, and a comparison of our statistical system uninsured children being reduced over with the systems of other nations. but often swimming upstream against the system. time, and how effective are the state TITLE II—EFFICIENCY AND CONFIDENTIALITY OF We are also aware, as of course are you, of CHIP programs at serving them? What FEDERAL STATISTICAL SYSTEMS a number of longstanding substantive and are the best practices and initiatives The title reaffirms policies that have been methodological difficulties with which the for finding and enrolling the nation’s applied to confidential data by statistical current system is grappling. These include uninsured children? agencies for many decades and extends these the increasing importance in the national We cannot begin to solve a problem policies to protect confidentiality in an envi- economy of the service sector, whose output ronment which permits carefully controlled and productivity are especially hard to until we can measure it. Appropriate sharing of information exclusively for statis- measure, and the pervasive effect both on program data and evaluation contrib- tical purposes. It recognizes that the credible measures of national output and income and utes to sound policy and program de- protection of confidentiality is crucial to en- on the federal budget of the accuracy (or in- sign. In 1994, the Welfare Indicators suring the level of cooperation which pro- accuracy) with which our measures of prices Act of that year—a bill that I intro- duces accurate and timely responses to sta- capture changes in the quality of the goods duced—became law. The bill directed tistical inquiries. and services we buy. Without at all prejudging the appropriate the Secretary of Health and Human DESIGNATION OF STATISTICAL DATA CENTERS measures to deal with these difficult prob- Services to study the most useful sta- The bill designates the BLS, BEA and Bu- lems, we believe that a thoroughgoing review tistics for tracking and predicting reau of Census National Agricultural Statis- by a highly qualified and bipartisan Commis- trends in three means-tested cash and tics Service, The National Center for Edu- sion as provided in your Bill has great prom- nutritional assistance programs. The cation Statistics, The National Center for ise of showing the way to major improve- first of these, of course, was ADFC, but Health Statistics, The Energy End Use and ments. the first full Report came two months Integrated Statistics Division of the Energy Sincerely, Information Administration, and The Divi- after AFDC was repealed. Professor Michael J. Boskin, Stanford Without data to track its benefits, a sion of Science Resources Studies as Statis- University; Dr. Martin Feldstein, Na- tical Data Centers; and assigns general re- tional Bureau of Economic Research; program becomes vulnerable to reduc- sponsibilities to the agencies designated as Alan Greenspan; Professor Paul W. tions in funding. The most recent ex- Statistical Data Centers. McCracken, University of Michigan; ample is the Social Services Block DISCLOSURE OF DATA OR INFORMATION BY FED- Raymond J. Saulnier; Charles L. Grant under Title XX of the Social Se- ERAL AGENCIES TO STATISTICAL DATA CEN- Schultze, The Brookings Institution; curity Act, which funds a wide array of TERS Beryl W. Sprinkel; Herbert Stein, social services ranging from child care The bill establishes a uniform confidential- American Enterprise Institute; Profes- to home-delivered meals to the elderly. ity policy for data acquired for exclusively sor Murray Weidenbaum, Center for Little summary data on this program the Study of American Business. statistical purposes, by prohibiting disclo- has been released and not all data is re- sures of such data for non-statistical pur- poses and limiting disclosures for statistical By Mr. MOYNIHAN (for himself ported in a uniform manner. The wel- purposes. and Mr. CHAFEE): fare repeal bill enacted in 1996 reduced COORDINATION AND OVERSIGHT BY OFFICE OF S. 206. A bill to amend title XXI of the block grant from $2.8 billion to MANAGEMENT AND BUDGET the Social Security Act to provide for $2.38 billion. Appropriations for Fiscal The bill assigns OMB the responsibility for improved data collection and evalua- Year 1998 limited funding for that year oversight, reporting, coordination, and re- tions of State Children’s Health Insur- to $2.29 billion. The highway and mass view and approval of any implementing regu- ance Programs, and for other purposes; transit bill enacted in 1998 further re- lations. to the Committee on Finance. duced grants to $1.7 billion by 2001. S644 CONGRESSIONAL RECORD — SENATE January 19, 1999 Most recently, the Omnibus Consoli- SEC. 2. FUNDING FOR RELIABLE ANNUAL STATE- (1) by redesignating subsections (c) and (d) dated and Emergency Supplemental BY-STATE ESTIMATES ON THE NUM- as subsections (d) and (e), respectively; and BER OF CHILDREN WHO DO NOT Appropriations for Fiscal Year 1999 ac- (2) by inserting after subsection (b) the fol- HAVE HEALTH INSURANCE COV- lowing: ERAGE. celerated that funding limitation to ‘‘(c) FEDERAL EVALUATION.— Section 2108 of the Social Security Act (42 $1.9 billion in FY 1999. ‘‘(1) IN GENERAL.—The Secretary, directly U.S.C.1397hh) is amended by adding at the THE CHIP DATA AND EVALUATION IMPROVEMENT or through contracts or interagency agree- end the following: ACT OF 1999 ments, shall conduct an independent evalua- ‘‘(c) ADJUSTMENT TO CURRENT POPULATION The CHIP Data and Evaluation Im- tion of 10 States with approved child health SURVEY TO INCLUDE STATE-BY-STATE DATA plans. provement Act of 1999 calls for a de- ELATING TO HILDREN ITHOUT EALTH N R C W H I - ‘‘(2) SELECTION OF STATES.—In selecting tailed Federal CHIP evaluation by the SURANCE COVERAGE.— States for the evaluation conducted under Secretary of Health and Human Serv- ‘‘(1) IN GENERAL.—The Secretary of Com- this subsection, the Secretary shall chose 10 ices. Current law requires a CHIP re- merce shall make appropriate adjustments States that utilize diverse approaches to pro- port from the Secretary to Congress; to the annual Current Population Survey viding child health assistance, represent var- conducted by the Bureau of the Census in ious geographic areas (including a mix of however, no funds were authorized. order to produce statistically reliable annual This bill would provide the necessary rural and urban areas), and contain a signifi- State data on the number of low-income cant portion of uncovered children. funds to conduct an evaluation. The children who do not have health insurance ‘‘(3) MATTERS INCLUDED.—In addition to the evaluation would focus, in part, on out- coverage, so that real changes in the elements described in subsection (b)(1), the reach and enrollment and on the co- uninsurance rates of children can reasonably evaluation conducted under this subsection ordinated the existing Medicaid pro- be detected. The Current Population Survey shall include, but is not limited to, the fol- gram and the new CHIP program. should produce data under this subsection lowing: In this era of devolution of social that categorizes such children by family in- ‘‘(A) Surveys of the target population (en- come, age, and race or ethnicity. The adjust- programs, the Federal government has rollees, disenrollees, and individuals eligible ments made to produce such data shall in- for but not enrolled in the program under an increasingly critical responsibility clude, where appropriate, expanding the sam- this title). to ensure adequate and comparable na- ple size used in the State sampling units, ex- ‘‘(B) Evaluation of effective and ineffective tional data. This bill would ensure that panding the number of sampling units in a outreach and enrollment practices with re- standardized CHIP data is provided. At State, and an appropriate verification ele- spect to children (for both the program the very least, the Federal government ment. under this title and the medicaid program should provide, on a national level, es- ‘‘(2) APPROPRIATION.—Out of any money in under title XIX), and identification of enroll- timates of the number of children the Treasury of the United States not other- ment barriers and key elements of effective wise appropriated, there are appropriated outreach and enrollment practices, including below the poverty level who are cov- $10,000,000 for fiscal year 2000 and each fiscal practices that have successfully enrolled ered by CHIP and by Medicaid. year thereafter for the purpose of carrying hard-to-reach populations such as children The CHIP Data and Evaluation Im- out this subsection.’’. who are eligible for medical assistance under provement Act would provide funding SEC. 3. FUNDING FOR CHILDREN’S HEALTH CARE title XIX but have not been enrolled pre- so that existing national surveys would ACCESS AND UTILIZATION STATE- viously in the medicaid program under that provide reliable and comparable state- BY-STATE DATA. title. by-state data. The most fundamental Section 2108 of the Social Security Act (42 ‘‘(C) Evaluation of the extent to which U.S.C.1397hh), as amended by section 2, is State medicaid eligibility practices and pro- question we, as policy makers, will be amended by adding at the end the following: cedures under the medicaid program under asking is whether the number of unin- ‘‘(d) COLLECTION OF CHILDREN’S HEALTH title XIX are a barrier to the enrollment of sured children is going down. With an CARE ACCESS AND UTILIZATION STATE-LEVEL children under that program, and the extent increasing percent of uninsured, a sta- DATA.— to which coordination (or lack of coordina- ble rate might be considered a success! ‘‘(1) IN GENERAL.—The Secretary, acting tion) between that program and the program This bill would provide additional through the National Center for Health Sta- under this title affects the enrollment of funding to the Census Bureau for its tistics (in this subsection referred to as the children under both programs. Current Population Survey—a national ‘Center’), shall collect data on children’s ‘‘(D) An assessment of the effect of cost- health insurance through the State and sharing on utilization, enrollment, and cov- data source of the uninsured—to im- Local Area Integrated Telephone Survey erage retention. prove upon the reliability of its state- (SLAITS) for the 50 States and the District ‘‘(E) Evaluation of disenrollment or other by-state estimates of uninsured chil- of Columbia. Sufficient data shall be col- retention issues, such as switching to private dren. lected so as to provide reliable, annual, coverage, failure to pay premiums, or bar- In addition, the proposal would pro- State-by-State information on the health riers in the recertification process. vide funding for another national sur- care access and utilization of children in ‘‘(4) SUBMISSION TO CONGRESS.—Not later vey to provide reliable state-by-state low-income households, and to allow for than December 31, 2001, the Secretary shall comparisons between demographic subgroups submit to Congress the results of the evalua- data on health care access and utiliza- categorized with respect to family income, tion conducted under this subsection. tion for low-income children. Although age, and race or ethnicity. ‘‘(5) FUNDING.—Out of any money in the this survey may also provide data on ‘‘(2) SURVEY DESIGN AND CONTENT.— Treasury of the United States not otherwise the number of uninsured, the CPS ‘‘(A) IN GENERAL.—In carrying out para- appropriated, there are appropriated would be the primary source for such graph (1), the Secretary, acting through the $10,000,000 for fiscal year 2000 for the purpose figures. Center— of conducting the evaluation authorized Also, to develop more efficient and ‘‘(i) shall obtain input from appropriate under this subsection. Amounts appropriated centralized statistics, this bill would sources, including States, in designing the under this paragraph shall remain available survey and making content decisions; and without fiscal year limitation.’’. coordinate a Federal clearinghouse for ‘‘(ii) at the request of a State, may collect SEC. 5. STANDARDIZED REPORTING REQUIRE- all data bases and reports on children’s additional data to assist with a State’s eval- MENTS FOR ANNUAL REPORTS. health. Centralized and complete infor- uation of the program established under this Section 2108(a) of the Social Security Act mation is the key to sound policy and title. (42 U.S.C. 1397hh(a)) is amended by— programs. ‘‘(B) REIMBURSEMENT OF COSTS OF ADDI- (1) redesignating paragraphs (1) and (2) as I ask unanimous consent that the TIONAL DATA.—A State shall reimburse the subparagraphs (A) and (B), respectively and summary and the full text of the bill be Center for services provided under subpara- indenting appropriately; graph (A)(ii). (2) by striking ‘‘The State shall—’’ and in- printed in the RECORD. ‘‘(3) APPROPRIATION.—Out of any money in serting the following There being no objection, the mate- the Treasury of the United States not other- ‘‘(1) IN GENERAL.—The State shall—’’; and rials were ordered to be printed in the wise appropriated, there are appropriated (3) by adding at the end the following: RECORD, as follows: $9,000,000 for fiscal year 2000 and each fiscal ‘‘(2) STANDARDIZED REPORTING REQUIRE- S. 206 year thereafter for the purpose of carrying MENTS.—Each annual report submitted under out this subsection.’’. this subsection shall, in addition to expendi- Be it enacted by the Senate and House of Rep- ture and other reporting requirements speci- resentatives of the United States of America in SEC. 4. FEDERAL EVALUATION OF STATE CHIL- DREN’S HEALTH INSURANCE PRO- fied by the Secretary, include the following: Congress assembled, GRAMS. ‘‘(A) Enrollee counts categorized by in- SECTION 1. SHORT TITLE. Section 2108 of the Social Security Act (42 come (that at least identifies enrollees with This Act may be cited as the ‘‘CHIP Data U.S.C.1397hh), as amended by sections 2 and income below the poverty line), age, and race and Evaluation Improvement Act of 1999.’’. 3, is amended— or ethnicity, and, if income levels used in January 19, 1999 CONGRESSIONAL RECORD — SENATE S645

State reporting differ from that prescribed state-specific data is needed to provide that THE MATERNAL CHILD HEALTH BLOCK GRANT by the Secretary, a detailed description of information. In addition, the Federal govern- AUTHORIZATION the eligibility methodologies used by the ment should evaluate the effectiveness of Mr. MOYNIHAN. Mr. President, in State, including all relevant income dis- these programs in finding and enrolling chil- November 1998, Essence Magazine re- regards, exempted income, and eligibility dren in health insurance. ported that between 1980 and 1995 the family units. PROPOSAL suicide rate among Black males ages 10 ‘‘(B) The annual percentages of those indi- State-by-state Uninsured Counts and Chil- to 19 more than doubled. According to viduals who sought coverage (as determined dren’s Health Care Access and Utilization. (1) by the Secretary) through the screening and Provide funds ($10 million annually) to the a Centers for Disease Control and Pre- enrollment process established under the Census Bureau to make appropriate adjust- vention (CDC) study, suicide is now the State program under this title who were— ments to the Current Population Survey third leading cause of death among all ‘‘(i) enrolled in the program under this (CPS) so that the CPS can provide reliable youth aged 15–19, and the fourth lead- title; state-by-state data on uninsured children. (2) ing cause of death among children aged ‘‘(ii) enrolled in the medicaid program Provide funds ($9 million annually) to the 10–14 nationally. In many states the under title XIX; or National Center for Health Statistics to con- problem is even worse. For example, ‘‘(iii) determined eligible for, but not en- duct the Children’s Health portion of the suicide is the number one killer of ado- rolled in, the program under this title or the State and Local Area Integrated Telephone medicaid program under title XIX.’’. Survey (SLAITS) in order to produce reliable lescents 15–19 years old in Alaska and SEC. 6. INSPECTOR GENERAL AUDIT AND GAO state-by-state date on the health care access of children 10 to 14 years old in Oregon. REPORT ON ENROLLEES ELIGIBLE and utilization for low-income children cov- The majority of children and adoles- FOR MEDICAID. ered by various insurance programs such as cents at risk for suicidal behavior are Section 2108 of the Social Security Act (42 Medicaid and CHIP. not seen by mental health specialists; U.S.C.1397hh), as amended by section 4, is Federal Evaluation. With funding ($10 mil- therefore, primary health care provid- amended by adding at the end the following: lion), the Secretary of Health and Human ‘‘(f) INSPECTOR GENERAL AUDIT AND GAO Services would submit to Congress a Federal ers and others in regular contact with REPORT.— evaluation report that would include 10 young people must be available to re- ‘‘(1) AUDIT.—Beginning with fiscal year states representing varying geographic, spond to these troubled youngsters. 2000, and every third fiscal year thereafter, rural/urban, with various program designs. The legislation introduced today pro- the Secretary, through the Inspector General The evaluation would include more specific poses to focus on seriously emotionally of the Department of Health and Human and comparable evaluation elements than disabled children and adolescents and Services, shall audit a sample from among are already included under Title XXI, such their families. Adolescents with special the States described in paragraph (2) in order as including surveys of the target population health needs, those experiencing chron- to— (enrollees and other eligibles). The study ic physical, developmental, behavioral, ‘‘(A) determine the number, if any, of en- would evaluate outreach and enrollment rollees under the plan under this title who practices (for both CHIP and Medicaid), iden- or serious emotional problems and re- are eligible for medical assistance under tify barriers to enrollment, assess states’ quiring additional health and related title XIX (other than as an optional targeted Medicaid and CHIP program coordination, services such as assistance in moving low-income children under section assess the effect of cost sharing on enroll- from pediatric to adult health care, to 1902(a)(10)(A)(ii)(XIV)); and ment and coverage retention, and identify post-secondary education and employ- ‘‘(B) assess the progress made in reducing the reasons for disenrollment/retention. ment will be helped by this bill. The the number of targeted uncovered low-in- Standardized Reporting. States would sub- Maternal and Child Health Bureau come children relative to the goals estab- mit standardized data to the Secretary, in- lished in the State child health plan, as re- cluding enrollee counts disaggregated by in- (MCHB) located within the Department ported to the Secretary in accordance with come (below 100%), race/ethnicity, and age. If of Health and Human Services is best subsection (a)(2). income could not be submitted in a standard situated to implement this program. ‘‘(2) STATE DESCRIBED.—A State described form, the state would submit a detailed de- The Maternal and Child Health Bu- in this paragraph is a State with an approved scription of eligibility methodologies that reau (MCHB) has roots that go back State child health plan under this title that outline relevant income disregards. States more than 80 years—to the creation of does not, as part of such plan, provide health would also submit percentages of individuals the Children’s Bureau in 1912. This was benefits coverage under the State’s medicaid screened that are enrolled in CHIP and in the first government agency to act as program under title XIX. Medicaid, and the percent screened eligible an advocate for mothers, children, and ‘‘(3) MONITORING AND REPORT FROM GAO.— for Medicaid but not enrolled. The Comptroller General of the United Administrative Spending Reports for Title adolescents. The Maternal and Child States shall monitor the audits conducted XXI. States would submit standardized Health Services Block Grant, the bu- under this subsection and, not later than spending reports for the following adminis- reau’s principle statutory responsibil- March 1 of each fiscal year after a fiscal year trative costs: data systems, outreach efforts ity, was originally enacted in 1935 as in which an audit is conducted under this and program operation (eligibility/enroll- Title V of the Social Security Act. The subsection, shall submit a report to Congress ment, etc.) MCHB is charged with providing lead- on the results of the audit conducted during Coordinate CHIP Data with Title V Data Requirements. Existing reporting require- ership, partnership, and resources to the prior fiscal year.’’. advance the health of all mothers, in- SEC. 7. COORDINATION OF DATA COLLECTION ments for the Maternal and Child Health WITH DATA REQUIREMENTS UNDER Block Grant provide data based on children’s fants, children, and adolescents—in- THE MATERNAL AND CHILD HEALTH health insurance, including Medicaid. This cluding families with low income, SERVICES BLOCK GRANT. bill would include the CHIP program in its those with diverse racial and ethnic Subparagraphs (C)(ii) and (D)(ii) of section reporting. heritages, those with special health 506(a)(2) of the Social Security Act (42 U.S.C. IG Audit and GAO Report. The Inspector care needs, and those living in rural or 706(a)(2)) are each amended by inserting ‘‘or General for the Department of Health and Human Services would audit CHIP enrollee isolated areas without access to care. the State plan under title XXI’’ after ‘‘title Title V encompasses a program of XIX’’. data to identify children who are actually el- grants to the states and two federal SEC. 8. COORDINATION OF DATA SURVEYS AND igible for Medicaid. The General Accounting REPORTS. Office will report the results to Congress. discretionary grant programs: Special The Secretary of Health and Human Serv- Coordination of all Children Data and Re- Projects of Regional and National Sig- ices, through the Assistant Secretary for ports. The Assistant Secretary of Planning nificance (SPRANS) and Community Planning and Evaluation, shall establish a and Evaluation in the Department of Health Integrated Service Systems (CISS). clearinghouse for the consolidation and co- and Human Services would consolidate all Funds are used to support research, ordination of all Federal data bases and re- federal data base information and reports on children’s health in a clearinghouse. training, newborn screening, maternal ports regarding children’s health. and child health improvements. CISS SUMMARY OF THE CHIP DATA AND By Mr. MOYNIHAN: is only funded when the Title V annual EVALUATION IMPROVEMENT ACT OF 1999 S. 207. A bill to amend title V of the appropriation exceeds $600 million) PURPOSE Social Security Act to increase the au- which occurred for the first time in In 1997, 10.7 million children were unin- thorization of appropriations for the 1992. The CISS program provides direct sured. The new State Children’s Health In- maternal and child health services support to public and private groups surance Program (CHIP) and existing state Medicaid programs are intended to provide block grant and to promote integrated committed to building integrated coverage for low-income children. The cru- physical and specialized mental health health delivery systems that provide cial question is whether the number of unin- services for children and adolescents; comprehensive services in local com- sured children has been reduced. Improved to the Committee on Finance. munities. Most importantly, the State S646 CONGRESSIONAL RECORD — SENATE January 19, 1999 Title V programs are required to co- There being no objection, the bill was to low-income schools, supported job train- ordinate with other related Federal ordered to be printed in the RECORD, as ing, and provided cash grants to working health, education, and social service follows: families. programs. For example, MCH programs S. 207 Yet still we are faced with two na- have provided the technical expertise Be it enacted by the Senate and House of Rep- tions. Professor Wilson explains why: and the service delivery systems to en- resentatives of the United States of America in ‘‘[t]he family problem lies at the heart sure that expanded Medicaid eligibility Congress assembled, of the emergence of two nations.’’ He and benefits result in improved access SECTION 1. AMENDMENTS TO THE MATERNAL notes that as our families become to services and improved health status AND CHILD HEALTH SERVICES weaker—as more and more American BLOCK GRANT. of pregnant women and children. children are born outside of marriage (a) INCREASE IN AUTHORIZATION OF APPRO- and raised by one, not two, parents— The federal Title V mandate places a PRIATIONS.—Section 501(a) of the Social Se- unique responsibility on state MCH curity Act (42 U.S.C. 701(a)) is amended in the foundation of our society becomes agencies to assure that children with the matter preceding paragraph (1) by strik- weaker. This deterioration helps to ex- special health care needs are identified ing ‘‘$705,000,000 for fiscal year 1994’’ and in- plain why, as reported by the Census and receive the care they need. State serting ‘‘$840,000,000 for fiscal year 2000’’. Bureau today, the poverty rate for programs are required to develop fam- (b) PROMOTION OF INTEGRATED PHYSICAL American children is almost twice that AND SPECIALIZED MENTAL HEALTH SERV- ily-centered, community-based, coordi- for adults aged 18 to 64 (19.9 percent for ICES.—Section 501(a) of the Social Security children versus 10.9 percent for adults). nated care systems for children with Act (42 U.S.C. 701(a)) is amended— special health care needs. Services for (1) in paragraph (2)— And it grows increasingly difficult for these children are most often provided (A) by striking ‘‘and for’’ and inserting government to address the problems of through specialty clinics and through ‘‘for’’; and that ‘‘second nation.’’ Professor Wilson purchase of private office or hospital- (B) by inserting ‘‘, and for the promotion of even quotes the Senator from New based outpatient and inpatient diag- integrated physical and specialized mental York to this effect: ‘‘If you expect a nostic, treatment, and follow up serv- health services for children and adolescents’’ government program to change fami- before the semicolon; and lies, you know more about government ices. Three-fourths of the State MCH (2) in paragraph (3)— programs have supported local ‘‘one- than I do.’’ (A) in subparagraph (E), by striking ‘‘and’’ Even so, Jim Wilson, quite character- stop shopping’’ models integrating ac- at the end; cess to Title V, Medicaid, the WIC food (B) in subparagraph (F), by striking the pe- istically, has fresh ideas about what program, and other health or social riod and inserting ‘‘, and’’; and might help. On the basis of recent services at one site. In New York, MCH (C) by adding at the end the following: scholarly research, and common sense, helps to fund or operate regional pedi- ‘‘(G) integrated physical and specialized he urged in the Boyer Lecture that we atric resource centers for children with mental health services for children and ado- refocus our attention on the vital pe- lescents.’’. special needs. riod of early childhood. I was so im- pressed with his Lecture that after- These centers offer multidisciplinary By Mr. MOYNIHAN: ward I set about writing a bill to put team care, family support and service S. 208. A bill to enhance family life; his recommendations into effect. coordination and they are beginning to to the Committee on Finance. The Enhancing Family Life Act of integrate this approach into private THE ENHANCING FAMILY LIFE ACT OF 1999 1999 contains four key elements, all of practice settings where children are Mr. MOYNIHAN. Mr. President, I rise which are related to families. First, it now receiving their specialty medical today to introduce the Enhancing supports ‘‘second change’’ maternity care. Yet, even though these programs Family Life Act of 1999, a bill inspired homes for unwed teenage mothers. have had encouraging results, most by an extraordinary set of proposals by These are group homes where young states’ health care systems are unable one of our nation’s most eminent social women would live with their children to address all the needs of these vulner- scientists, Professor James Q. Wilson. under strict adult supervision and have able children—and adolescent youth On December 4, 1997, I had the honor of the support necessary to become pro- with special health needs are particu- hearing Professor Wilson—who is an ductive members of society. The bill larly at risk. And that is why this leg- old and dear friend—deliver the Francis provides $45 million a year to create islation is so important. Under current Boyer Lecture at the American Enter- such homes or expand existing ones. law, Title V is permanently authorized prise Institute (AEI). The Boyer Lec- Second, it promotes adoption. The at $705 million. It was last extended in ture is delivered at AEI’s annual dinner bill expands the number of children in FY 1993 to conform to funding levels by a thinker who has ‘‘made notable foster care eligible for federal adoption that went beyond the prior authoriza- intellectual or practical contributions incentives. Too many children drift in tion level. This legislation would in- to improved public policy and social foster care; we should do more to find crease the current MCH Block Grant welfare.’’ Previous Boyer lecturers them permanent homes. The bill also authorization level from $705 million to have included Irving Kristol, Alan encourages states to experiment with $840 million in FY 2000. Greenspan, and Henry Kissinger. In his ‘‘per capita’’ approaches to finding Health care information and edu- lecture, Professor Wilson argued that these permanent homes for foster chil- cation for families with special health ‘‘two nations’’ now exist within the dren, a strategy Kansas has used with care needs is critical to the success of United States. He said: success. any integrated physical and mental In one nation, a child, raised by two par- Third, it funds collaborative early health service program. The MCHB has ents, acquires an education, a job, a spouse, childhood development programs. Re- begun family support efforts for fami- and a home kept separate from crime and cent research has reminded us of the lies of children with special health care disorder by distance, fences, or guards. In critical importance of the first few the other nation, a child is raised by an needs, and has a promising pilot pro- years of a child’s life. States would gram to build a national network of unwed girl, lives in a neighborhood filled with many sexual men but few committed fa- have great flexibility in the use of statewide family-run support services thers, and finds gang life to be necessary for these funds; for example, the money in FY 1999. The additional funding in self-protection and valuable for self-advance- could be used for pre-school programs this bill is intended to expand upon ment. for poor children or home visits of par- these family support efforts. With in- Sadly, this is an all-too-accurate por- ents of young children. It provides $3.75 creased funding for the MCH Block trait of the American underclass, the billion over five years for this purpose. Grant, SPRANS and CISS programs, problems of which have been the focus Finally, the legislation creates a new the MCH Bureau will be well-posi- of decades of unsuccessful welfare re- education assistance program to enable tioned to collaborate successfully with form and crime control efforts. We more parents to remain home with other Federal and State partners to ad- have tried a great many ‘‘solutions,’’ young children. A parent who tempo- dress this new project focus. as Professor Wilson notes: rarily leaves the workforce to raise a I ask unanimous consent that the Congress has devised community action, child would be eligible for an edu- full text of the bill be inserted in the built public housing, created a Job Corps, cational grant, similar to the Pell RECORD. distributed Food Stamps, given federal funds Grant, to help parent enter, or re- January 19, 1999 CONGRESSIONAL RECORD — SENATE S647 enter, the labor market with skills and ‘‘(C) USE.—Payments to a State from its their children in accordance with an applica- credentials necessary for success in to- allotment for any fiscal year must be ex- tion procedure to be determined by the Sec- day’s economy once the child is older. pended by the State in such fiscal year or in retary. Except as otherwise provided in this Mr. President, this bill is a starting the succeeding fiscal year. subsection, the provisions of this section ‘‘(D) TECHNICAL ASSISTANCE.—A State may shall apply to Indian tribes receiving funds point. It is what Professor James Q. use a portion of the amounts described in under this subsection in the same manner Wilson and I believe just might make a subparagraph (A) for the purpose of purchas- and to the same extent as the other provi- difference. We would certainly welcome ing technical assistance from public or pri- sions of this section apply to States. the comments of others. I first intro- vate entities if the State determines that ‘‘(2) ALLOTMENT.—If the Secretary ap- duced this legislation last September such assistance is required in developing, im- proves an Indian tribe’s application, the Sec- and have received several helpful sug- plementing, or administering the program retary shall allot to such tribe for a fiscal gestions. I look forward to further such funded under this section. year an amount which the Secretary deter- ‘‘(3) SECOND CHANCE HOMES.—For purposes conversations and comments. mines is the Indian tribe’s fair and equitable of this section, the term ‘second chance share of the amount specified under para- And I would commend to the atten- homes’ means an entity that provides custo- graph (3) for all Indian tribes with applica- tion of Senators and other interested dial parents under the age of 19 and their tions approved under this subsection (based persons the full text of Professor Wil- children with a supportive and supervised on allotment factors to be determined by the son’s lecture ‘‘Two Nations,’’ which is living arrangement in which such parents Secretary). The Secretary shall determine a available from my office or from the would be required to learn parenting skills, minimum allotment amount for all Indian American Enterprise Institute. I ask including child development, family budget- tribes with applications approved under this unanimous consent that a summary of ing, health and nutrition, and other skills to subsection. Each Indian tribe with an appli- promote their long-term economic independ- the legislation and the full text of the cation approved under this subsection shall ence and the well-being of their children. A be entitled to such minimum allotment. bill be included in the RECORD. second chance home may also serve as a net- ‘‘(3) AMOUNT SPECIFIED.—The amount speci- There being no objection, the mate- work center for other supportive services fied under this paragraph for all Indian rials were ordered to be printed in the that might be available in the community. tribes with applications approved under this RECORD, as follows: ‘‘(b) ALLOTMENT.— subsection is $5,000,000 for fiscal year 2000 S. 208 ‘‘(1) CERTAIN JURISDICTIONS.—The allot- and each succeeding fiscal year thereafter. ment for any fiscal year to Puerto Rico, Be it enacted by the Senate and House of Rep- ‘‘(4) INDIAN TRIBE DEFINED.—In this section, Guam, the United States Virgin Islands, the term ‘Indian tribe’ means any Indian resentatives of the United States of America in American Samoa, and the Northern Mariana Congress assembled, tribe, band, nation, pueblo, or other orga- Islands shall be an amount that bears the nized group or community, including any SECTION 1. SHORT TITLE; TABLE OF CONTENTS. same ratio to the amount specified under Alaska Native entity which is recognized as (a) SHORT TITLE.—This Act may be cited as paragraph (3) as the allotment that the juris- eligible for the special programs and services the ‘‘Enhancing Family Life Act of 1999’’. diction receives under section 2003(a) for the provided by the United States to Indian (b) TABLE OF CONTENTS.—The table of Con- fiscal year bears to the total amount speci- tribes because of their status as Indians. tents for this Act is as follows: fied for such fiscal year under section 2003(c). ‘‘(f) RESEARCH AND EVALUATION.— Sec. 1. Short title; table of contents. ‘‘(2) OTHER STATES.—The allotment for any ‘‘(1) IN GENERAL.—The amount appro- Sec. 2. Findings. fiscal year for each State other than Puerto priated to carry out this section for each fis- TITLE I—ASSISTANCE FOR CHILDREN Rico, Guam, the United States Virgin Is- cal year shall be increased by 2 percent and Sec. 101. Second chance homes. lands, American Samoa, and the Northern the Secretary shall reserve an amount equal Sec. 102. Adoption promotion. Mariana Islands shall be an amount which to that increase to pay for the costs of con- Sec. 103. Early childhood development. bears the same ratio to— ducting, through grant, contract, or inter- TITLE II—PARENT GRANTS ‘‘(A) the amount specified under paragraph agency agreement, research and evaluation (3); reduced by Sec. 201. Parent grants. projects regarding the second chance homes ‘‘(B) the total amount allotted for that fis- funded under this section. In conducting SEC. 2. FINDINGS. cal year under paragraph (1), such projects, the Secretary shall give prior- Congress makes the following findings: as the allotment that the State receives ity to projects that are undertaken by inde- (1) The family is the foundation of public under section 2003(b) for the fiscal year bears pendent and impartial organizations. life. to the total amount specified for such fiscal ‘‘(2) REPORT.—Not later than 4 years after (2) The proportion of illegitimate births to year under section 2003(c). the date of enactment of this section, the teenagers has increased astronomically from ‘‘(3) AMOUNT SPECIFIED.—The amount speci- Secretary shall submit a report to Congress 13 percent of such births in 1950 to 76 percent fied for purposes of paragraphs (1) and (2) on the research and evaluation projects con- of such births in 1996. shall be $40,000,000 for fiscal year 2000 and ducted in accordance with this subsection.’’. (3) Children in one-parent families are each succeeding fiscal year thereafter. (b) RECOMMENDATIONS ON USE OF GOVERN- more at risk for many types of anti-social ‘‘(c) LOCAL INVOLVEMENT.—Each State MENT SURPLUS PROPERTY.—Not later than 6 behavior. shall seek local involvement from the com- months after the date of the enactment of (4) The future of children is crucially de- munity in any area in which a second chance this Act, the Secretary of Health and Human termined during the first few years of life. home receiving funds pursuant to this sec- Services, after consultation with the Sec- tion is to be established. In determining cri- TITLE I—ASSISTANCE FOR CHILDREN retary of Defense, the Secretary of Housing teria for targeting funds received under this SEC. 101. SECOND CHANCE HOMES. and Urban Development, and the Adminis- section, each State shall evaluate the com- trator of the General Services Administra- (a) IN GENERAL.—Title XX of the Social Se- munity’s commitment to the establishment tion, shall submit recommendations to Con- curity Act (42 U.S.C. 1397–1397f) is amended and planning of the home. by adding at the end the following: ‘‘(d) LIMITATIONS ON THE USE OF FUNDS.— gress on the extent to which surplus prop- ‘‘SEC. 2008. SECOND CHANCE HOMES. ‘‘(1) CONSTRUCTION.—Except as provided in erties of the United States Government may ‘‘(a) ENTITLEMENT.— paragraph (2), funds made available under be used for the establishment of second ‘‘(1) IN GENERAL.—In addition to any pay- this section may not be used by the State, or chance homes receiving funds under section ment under sections 2002 and 2007, beginning any other person with which the State 2008 of the Social Security Act, as added by with fiscal year 2000, each State shall be en- makes arrangements to carry out the pur- subsection (a). titled to funds under this section for each poses of this section, for the purchase or im- SEC. 102. ADOPTION PROMOTION. fiscal year for the establishment, operation, provement of land, or the purchase, con- (a) ADOPTION OF CHILDREN WITH SPECIAL and support of second chance homes for cus- struction, or permanent improvement (other NEEDS.— todial parents under the age of 19 and their than minor remodeling) of any building or (1) IN GENERAL.—Section 473(a) of the So- children. other facility. cial Security Act (42 U.S.C. 673(a)) is amend- ‘‘(2) PAYMENT TO STATES.— ‘‘(2) WAIVER.—The Secretary may waive ed by striking paragraph (2) and inserting ‘‘(A) IN GENERAL.—Each State shall be en- the limitation contained in paragraph (1) the following: titled to payment under this section for each upon the State’s request for such a waiver if ‘‘(2)(A) For purposes of paragraph (1)(B)(ii), fiscal year in an amount equal to its allot- the Secretary finds that the request de- a child meets the requirements of this para- ment (determined in accordance with sub- scribes extraordinary circumstances to jus- graph if such child— section (b)) for such fiscal year, to be used by tify the waiver and that permitting the ‘‘(i) prior to termination of parental rights such State for the purposes set forth in para- waiver will contribute to the State’s ability and the initiation of adoption proceedings graph (1). to carry out the purposes of this section. was in the care of a public or licensed private ‘‘(B) TRANSFERS OF FUNDS.—The Secretary ‘‘(e) TREATMENT OF INDIAN TRIBES.— child care agency or Indian tribal organiza- shall make payments in accordance with sec- ‘‘(1) IN GENERAL.—An Indian tribe may tion either pursuant to a voluntary place- tion 6503 of title 31, United States Code, to apply to the Secretary to establish, operate, ment agreement (provided the child was in each State from its allotment for use under and support adult-supervised group homes care for not more than 180 days) or as a re- this section. for custodial parents under the age of 19 and sult of a judicial determination to the effect S648 CONGRESSIONAL RECORD — SENATE January 19, 1999 that continuation in the home would be con- years that are designed to test a per capita ‘‘(F) representatives of State nonprofit or- trary to the safety and welfare of such child, approach for the successful resolution of a ganizations that represent the interests of or was residing in a foster family home or foster care placement under which a private young children in poverty, as defined in sub- child care institution with the child’s minor entity contracts for a fixed amount to either section (b), in the State; parent (either pursuant to such a voluntary restore a child in foster care to the child’s ‘‘(G) representatives of organizations pro- placement agreement or as a result of such a parent or parents or locate an adoptive viding services to young children and the judicial determination); and placement for the child.’’. parents of young children, such as organiza- ‘‘(ii) has been determined by the State pur- (c) EFFECTIVE DATE.—The amendments tions providing child care, carrying out Head suant to subsection (c) to be a child with spe- made by this section shall take effect on Oc- Start programs under the Head Start Act (42 cial needs, which needs shall be considered tober 1, 1999. U.S.C. 9831 et seq.), providing services by the State, together with the cir- SEC. 103. EARLY CHILDHOOD DEVELOPMENT. through a family resource center, providing cumstances of the adopting parents, in deter- Title IV of the Social Security Act (42 home visits, or providing health care serv- mining the amount of any payments to be U.S.C. 601 et seq.) is amended by adding at ices, in the State; and made to the adopting parents. the end the following: ‘‘(H) representatives of local educational ‘‘(B) Notwithstanding any other provision ‘‘PART F—ASSISTANCE FOR YOUNG agencies. of law, and except as provided in paragraph CHILDREN ‘‘(3) DESIGNATED BOARD.—The chief execu- (7), a child who is not a citizen or resident of ‘‘SEC. 480. DEFINITIONS. tive officer of the State may designate an en- the United States and who meets the re- ‘‘In this part: tity to serve as the State board under para- quirements of subparagraph (A) shall be ‘‘(1) LOCAL EDUCATIONAL AGENCY.—The graph (1) if the entity includes the chief ex- treated as meeting the requirements of this term ‘local educational agency’ has the ecutive officer of the State and the members paragraph for purposes of paragraph meaning given that term in section 14101 of described in subparagraphs (A) through (G) (1)(B)(ii). the Elementary and Secondary Education of paragraph (2). ‘‘(C) A child who meets the requirements of Act of 1965 (20 U.S.C. 8801). ‘‘(4) DESIGNATED STATE AGENCY.—The chief subparagraph (A), who was determined eligi- ‘‘(2) POVERTY LINE.—The term ‘poverty executive officer of the State shall designate ble for adoption assistance payments under line’ means the poverty line (as defined by a State agency that has a representative on this part with respect to a prior adoption (or the Office of Management and Budget, and the State board to provide administrative who would have been determined eligible for revised annually in accordance with section oversight concerning the use of funds made such payments had the Adoption and Safe 673(2) of the Community Services Block available under this part and ensure ac- Families Act of 1997 been in effect at the Grant Act (42 U.S.C. 9902(2)) applicable to a countability for the funds. time that such determination would have family of the size involved. ‘‘(d) APPLICATION.—To be eligible to re- been made), and who is available for adop- ‘‘(3) STATE BOARD.—The term ‘State board’ ceive an allotment under this part, a State tion because the prior adoption has been dis- means a State Early Learning Coordinating board shall annually submit an application solved and the parental rights of the adop- Board established under section 481(c). to the Secretary at such time, in such man- tive parents have been terminated or because ‘‘(4) YOUNG CHILD.—The term ‘young child’ ner, and containing such information as the the child’s adoptive parents have died, shall means an individual from birth through age Secretary may require. At a minimum, the be treated as meeting the requirements of 5. application shall contain— this paragraph for purposes of paragraph ‘‘(5) YOUNG CHILD ASSISTANCE ACTIVITIES.— ‘‘(1) sufficient information about the en- (1)(B)(ii).’’. The term ‘young child assistance activities’ tity established or designated under sub- XCEPTION.—Section 473(a) of the Social (2) E means the activities described in paragraphs section (c) to serve as the State board to en- Security Act (42 U.S.C. 673(a)) is amended by (1) and (2)(A) of section 482(b). able the Secretary to determine whether the adding at the end the following: ‘‘SEC. 481. ALLOTMENTS TO STATES. entity complies with the requirements of ‘‘(7)(A) Notwithstanding any other provi- ‘‘(a) IN GENERAL.—The Secretary shall such subsection; sion of this subsection, no payment may be make allotments under subsection (b) to eli- ‘‘(2) a comprehensive State plan for carry- made to parents with respect to any child gible States to pay for the Federal share of ing out young child assistance activities; that— the cost of enabling the States to make ‘‘(3) an assurance that the State board will ‘‘(i) would be considered a child with spe- grants to local collaboratives under section provide such information as the Secretary cial needs under subsection (c); 482 for young child assistance activities. shall by regulation require on the amount of ‘‘(ii) is not a citizen or resident of the ‘‘(b) ALLOTMENT.— State and local public funds expended in the United States; and ‘‘(1) IN GENERAL.—From the funds appro- State to provide services for young children; ‘‘(iii) was adopted outside of the United priated under section 484 for each fiscal year and States or was brought into the United States and not reserved under subsection (i), the ‘‘(4) an assurance that the State board for the purpose of being adopted. Secretary shall allot to each eligible State shall annually compile and submit to the ‘‘(B) Subparagraph (A) shall not be con- an amount that bears the same relationship Secretary information from the reports re- strued as prohibiting payments under this to such funds as the total number of young ferred to in section 482(d)(2)(F)(iii) that de- part for a child described in subparagraph children in poverty in the State bears to the scribes the results referred to in section (A) that is placed in foster care subsequent total number of young children in poverty in to the failure, as determined by the State, of all eligible States. 482(d)(2)(F)(i). the initial adoption of such child by the par- ‘‘(2) YOUNG CHILD IN POVERTY.—In this sub- ‘‘(e) FEDERAL SHARE.— ents described in such subparagraph.’’. section, the term ‘young child in poverty’ ‘‘(1) IN GENERAL.—The Federal share of the (3) REQUIREMENT FOR USE OF STATE SAV- means an individual who— cost described in subsection (a) shall be— INGS.—Section 473(a) of the Social Security ‘‘(A) is a young child; and ‘‘(A) 85 percent, in the case of a State for Act (42 U.S.C. 673(a)), as amended by sub- ‘‘(B) is a member of a family with an in- which the Federal medical assistance per- section (b), is amended by adding at the end come below the poverty line. centage (as defined in section 1905(b)) is not the following: ‘‘(c) STATE BOARDS.— less than 50 percent but is less than 60 per- ‘‘(8) A State shall spend an amount equal ‘‘(1) IN GENERAL.—In order for a State to be cent; to the amount of savings (if any) in State ex- eligible to obtain an allotment under this ‘‘(B) 87.5 percent, in the case of a State for penditures under this part resulting from the part, the chief executive officer of the State which such percentage is not less than 60 application of paragraph (2) on and after the shall establish, or designate an entity to percent but is less than 70 percent; and effective date of the amendment to such serve as, a State Early Learning Coordinat- ‘‘(C) 90 percent, in the case of any State paragraph made by section 4(a) of the En- ing Board, which shall receive the allotment not described in subparagraph (A) or (B). hancing Family Life Act of 1999 to provide to and make the grants described in section 482. ‘‘(2) STATE SHARE.— children or families any service (including ‘‘(2) ESTABLISHED BOARD.—A State board ‘‘(A) IN GENERAL.—The State shall contrib- post-adoption services) that may be provided established under paragraph (1) shall consist ute the remaining share (referred to in this under this part or part B.’’. of the chief executive officer of the State and paragraph as the ‘State share’) of the cost (b) PER CAPITA CHILD WELFARE DEM- members appointed by such chief executive described in subsection (a). ONSTRATION PROJECTS.—Section 1130(a)(2) of officer, including— ‘‘(B) FORM.—The State share of the cost the Social Security Act (42 U.S.C. 1320a– ‘‘(A) representatives of all State agencies shall be in cash. 9(a)(2)) is amended— primarily providing services to young chil- ‘‘(C) SOURCES.—The State may provide for (1) by striking ‘‘The Secretary’’ and insert- dren in the State; the State share of the cost from State or ing the following: ‘‘(B) representatives of business in the local sources, or through donations from pri- ‘‘(A) IN GENERAL.—The Secretary’’; and State; vate entities. (2) by adding at the end the following: ‘‘(C) chief executive officers of political ‘‘(f) STATE ADMINISTRATIVE COSTS.— ‘‘(B) RESERVATION.—Of the 10 demonstra- subdivisions in the State; ‘‘(1) IN GENERAL.—A State may use not tion projects authorized under this sub- ‘‘(D) parents of young children in the more than 5 percent of the funds made avail- section for each of fiscal years 2000 through State; able through an allotment made under this 2002, the Secretary, upon receipt of an appro- ‘‘(E) officers of community organizations part to pay for a portion, not to exceed 50 priate application, shall approve at least 3 serving low-income individuals, as defined by percent, of State administrative costs relat- demonstration projects in each of such fiscal the Secretary, in the State; ed to carrying out this part. January 19, 1999 CONGRESSIONAL RECORD — SENATE S649

‘‘(2) WAIVER.—A State may apply to the ‘‘(C) collaborative pre-school efforts that ‘‘(A) the young child assistance activities Secretary for a waiver of paragraph (1). The link parenting education for such parents to available in the community, as of the date of Secretary may grant the waiver if the Sec- early childhood learning services for young submission of the plan, including informa- retary finds that unusual circumstances pre- children; and tion on efforts to coordinate the activities; vent the State from complying with para- ‘‘(2) may use funds made available through ‘‘(B) the unmet needs of young children, graph (1). A State that receives such a waiv- the grant— and parents of young children, in the com- er may use not more than 7.5 percent of the ‘‘(A) to provide, in the community, activi- munity for young child assistance activities; funds made available through the allotment ties that consist of— ‘‘(C) the manner in which funds made to pay for the State administrative costs. ‘‘(i) activities designed to strengthen the available through the grant will be used— ‘‘(g) MONITORING.—The Secretary shall quality of child care for young children and ‘‘(i) to meet the needs, including expanding monitor the activities of States that receive expand the supply of high quality child care and strengthening the activities described in allotments under this part to ensure compli- services for young children; subparagraph (A) and establishing additional ance with the requirements of this part, in- ‘‘(ii) health care services for young chil- young child assistance activities; and cluding compliance with the State plans. dren, including increasing the level of immu- ‘‘(ii) to improve results for young children ‘‘(h) ENFORCEMENT.—If the Secretary deter- nization for young children in the commu- in the community; mines that a State that has received an al- nity, providing preventive health care ‘‘(D) how the local cooperative will use at lotment under this part is not complying screening and education, and expanding least 60 percent of the funds made available with a requirement of this part, the Sec- health care services in schools, child care fa- through the grant to provide young child as- retary may— cilities, clinics in public housing projects (as sistance activities to young children and ‘‘(1) provide technical assistance to the defined in section 3(b) of the United States parents described in subsection (f); State to improve the ability of the State to Housing Act of 1937 (42 U.S.C. 1437a(b))), and ‘‘(E) the comprehensive methods that the comply with the requirement; mobile dental and vision clinics; collaborative will use to ensure that— ‘‘(2) reduce, by not less than 5 percent, an ‘‘(iii) services for children with disabilities ‘‘(i) each entity carrying out young child allotment made to the State under this sec- who are young children; and assistance activities through the collabo- tion, for the second determination of non- ‘‘(iv) activities designed to assist schools rative will coordinate the activities with compliance; in providing educational and other support such activities carried out by other entities ‘‘(3) reduce, by not less than 25 percent, an services to young children, and parents of through the collaborative; and allotment made to the State under this sec- young children, in the community, to be car- ‘‘(ii) the local collaborative will coordinate tion, for the third determination of non- ried out during extended hours when appro- the activities of the local collaborative compliance; or priate; and with— ‘‘(4) revoke the eligibility of the State to ‘‘(B) to pay for the salary and expenses of ‘‘(I) other services provided to young chil- receive allotments under this section, for the the administrator described in subsection dren, and the parents of young children, in fourth or subsequent determination of non- (e)(4), in accordance with such regulations as the community; and compliance. the Secretary shall prescribe. ‘‘(II) the activities of other local ‘‘(i) RESERVATION OF FUNDS.— ‘‘(c) MULTI-YEAR FUNDING.—In making collaboratives serving young children and ‘‘(1) TECHNICAL ASSISTANCE.—From the grants under this section, a State board may families in the community, if any; and funds appropriated under section 484 for each make grants for grant periods of more than ‘‘(F) the manner in which the collaborative fiscal year, the Secretary shall reserve not 1 year to local collaboratives with dem- will, at such intervals as the State board more than 1 percent of the funds to pay for onstrated success in carrying out young may require, submit information to the the costs of providing technical assistance. child assistance activities. State board to enable the State board to The Secretary shall use the reserved funds to ‘‘(d) LOCAL COLLABORATIVES.—To be eligi- carry out monitoring under section 481(g), ble to receive a grant under this section for enter into contracts with eligible entities to including the manner in which the collabo- a community, a local collaborative shall provide technical assistance to local rative will— demonstrate that the collaborative— collaboratives that receive grants under sec- ‘‘(i) evaluate the results achieved by the ‘‘(1) is able to provide, through a coordi- tion 482 relating to the functions of the local collaborative for young children and parents nated effort, young child assistance activi- collaboratives under this part. of young children through activities carried ties to young children, and parents of young ‘‘(2) RESEARCH AND EVALUATION.— out through the grant; children, in the community; and ‘‘(A) IN GENERAL.—From the funds appro- ‘‘(ii) evaluate how services can be more ef- ‘‘(2) includes— priated under section 484 for each fiscal year, fectively delivered to young children and the ‘‘(A) all public agencies primarily provid- the Secretary shall reserve 2 percent of the parents of young children; and ing services to young children in the commu- funds to pay for the costs of conducting, ‘‘(iii) prepare and submit to the State nity; through grant, contract, or interagency board annual reports describing the results; ‘‘(B) businesses in the community; agreement, research and evaluation projects ‘‘(3) an assurance that the local collabo- ‘‘(C) representatives of the local govern- regarding the young child assistance activi- rative will comply with the requirements of ment for the county or other political sub- ties funded with amounts made available in subparagraphs (D), (E), and (F) of paragraph division in which the community is located; accordance with the requirements of this (2), and subsection (g); and ‘‘(D) parents of young children in the com- part. In conducting such projects, the Sec- ‘‘(4) an assurance that the local collabo- munity; retary shall give priority to projects that are rative will hire an administrator to oversee ‘‘(E) officers of community organizations undertaken by independent and impartial or- the provision of the activities described in serving low-income individuals, as defined by ganizations. paragraphs (1) and (2)(A) of subsection (b). the Secretary, in the community; ‘‘(B) REPORT.—Not later than 4 years after ‘‘(F) community-based organizations pro- ‘‘(f) DISTRIBUTION.—In making grants the date of enactment of this part, the Sec- viding services to young children and the under this section, the State board shall en- retary shall submit a report to Congress on parents of young children, such as organiza- sure that at least 60 percent of the funds the research and evaluation projects con- tions providing child care, carrying out Head made available through each grant are used ducted in accordance with this paragraph. Start programs, or providing pre-kinder- to provide the young child assistance activi- ‘‘SEC. 482. GRANTS TO LOCAL COLLABORATIVES. garten education, mental health, or family ties to young children (and parents of young ‘‘(a) IN GENERAL.—A State board that re- support services; and children) who reside in school districts in ceives an allotment under section 481 shall ‘‘(G) nonprofit organizations that serve the which half or more of the students receive use the funds made available through the al- community and that are described in section free or reduced price lunches under the Na- lotment, and the State contribution made 501(c)(3) of the Internal Revenue Code of 1986 tional School Lunch Act (42 U.S.C. 1751 et under section 481(e)(2), to pay for the Federal and exempt from taxation under section seq.). and State shares of the cost of making 501(a) of such Code. ‘‘(g) LOCAL SHARE.— grants, on a competitive basis, to local ‘‘(e) APPLICATION.—To be eligible to receive ‘‘(1) IN GENERAL.—The local collaborative collaboratives to carry out young child as- a grant under this section, a local collabo- shall contribute a percentage (referred to in sistance activities. rative shall submit an application to the this subsection as the ‘local share’) of the ‘‘(b) USE OF FUNDS.—A local collaborative State board at such time, in such manner, cost of carrying out the young child assist- that receives a grant made under subsection and containing such information as the ance activities. (a)— State board may require. At a minimum, the ‘‘(2) PERCENTAGE.—The Secretary shall by ‘‘(1) shall use funds made available through application shall contain— regulation specify the percentage referred to the grant to provide, in a community, activi- ‘‘(1) sufficient information about the en- in paragraph (1). ties that consist of education and supportive tity described in subsection (d)(2) to enable ‘‘(3) FORM.—The local share of the cost services, such as— the State board to determine whether the shall be in cash. ‘‘(A) home visits for parents of young chil- entity complies with the requirements of ‘‘(4) SOURCE.—The local collaborative shall dren; such subsection; and provide for the local share of the cost ‘‘(B) services provided through community- ‘‘(2) a comprehensive plan for carrying out through donations from private entities. based family resource centers for such par- young child assistance activities in the com- ‘‘(5) WAIVER.—The State board shall waive ents; and munity, including information indicating— the requirement of paragraph (1) for poor S650 CONGRESSIONAL RECORD — SENATE January 19, 1999

rural and urban areas, as defined by the Sec- (2) SPECIAL RULES.— and strict rules while learning good parent- retary. (A) CALENDAR YEAR AWARDS.—A qualifying ing skills. ‘‘(h) MONITORING.—The State board shall parent is eligible for a parent grant under SECTION 102. ADOPTION PROMOTION monitor the activities of local collaboratives this section for each complete calendar year The bill would expand the number of ‘‘spe- that receive grants under this part to ensure the parent is outside the labor force, except cial needs’’ children in foster care for which compliance with the requirements of this that the Secretary shall prorate the amount federal adoption subsidies are available. It part. for which the qualifying parent is eligible for ‘‘de-links’’ eligibility for these subsidies ‘‘SEC. 483. SUPPLEMENT NOT SUPPLANT. the first year in which a child is born if the from the income level of the foster child’s bi- ‘‘Funds appropriated under this part shall qualifying parent is outside the labor force ological parents. (Under current law, a foster be used to supplement and not supplant for at least 4 months of the calendar year in child determined to have special needs only other Federal, State, and local public funds which the child is born. qualifies for a federal adoption subsidy if the expended to provide services for young chil- (B) SIMULTANEOUS AWARDS.—A qualifying child’s birth parents are welfare-eligible.) dren. parent is eligible for a parent grant simulta- The subsidies would help adoptive parents ‘‘SEC. 484. AUTHORIZATION OF APPROPRIATIONS. neously for each child for which the parent meet the particular emotional and physical ‘‘There are authorized to be appropriated remains outside the labor force. challenges of troubled children and so they to carry out this part— (C) LIMITATION.—The Secretary shall not can provide the children permanent homes. ‘‘(1) $250,000,000 for fiscal year 2000; award a qualifying parent a parent grant for In addition, last year’s ‘‘Adoption and Safe ‘‘(2) $500,000,000 for fiscal year 2001; any period the parent remains outside the Families Act’’ authorizes the Department of ‘‘(3) $1,000,000,000 for each of fiscal years labor force to pursue education with a parent Health and Human Services to grant child 2002 through 2004; and grant awarded under this section. welfare demonstration waivers to ten states ‘‘(4) such sums as may be necessary for fis- (d) USES.— each year. The bill would reserve three of cal year 2005 and each subsequent fiscal (1) IN GENERAL.—A parent grant awarded each ten waivers to states wishing to test year.’’. under this section— ‘‘per capita’’ approaches to finding perma- TITLE II—PARENT GRANTS (A) shall be used not later than 15 years nent homes for children in foster care, as after the year for which the grant is award- SEC. 201. PARENT GRANTS. Kansas has done. Under a per capita ap- ed; and (a) PURPOSE.—It is the purpose of this sec- proach, states or localities contract on a (B) shall be used to pay— tion to provide parents with grants for ca- fixed sum basis with agencies to reunite fos- (i) the cost of attendance (as determined in reer development and retraining after a pe- ter children with their biological families or accordance with section 472 of the Higher riod of child rearing. place them with adoptive parents. Because Education Act of 1965 (20 U.S.C. 1087ll)) at an (b) PROGRAM AUTHORITY AND METHOD OF the agency, typically a non-profit social institution of higher education (as defined in DISTRIBUTION.— service agency, receives a fixed sum per child section 481 of such Act (20 U.S.C. 1088)); or (1) IN GENERAL.—From amounts appro- (rather than unlimited reimbursement of priated under subsection (f), the Secretary of (ii) for expenses incurred in obtaining a costs) the agency may settle the child in a Education (in this section referred to as the secondary school diploma or its recognized permanent home more quickly. equivalent. ‘‘Secretary’’) may pay to each eligible insti- SECTION 103. EARLY CHILDHOOD DEVELOPMENT tution such sums as may be necessary to pay (2) AGGREGATION OF AWARDS.—A qualifying parent may aggregate parent grants awarded The bill provides $3.75 billion over five to each qualifying parent for each academic years for collaborative early childhood de- year that the qualifying parent is in attend- for more than 1 year or more than 1 child for use in a single academic year. velopment programs. Recent research has ance at an institution of higher education, a demonstrated the importance of the earliest (3) ROLLOVER.—A qualifying parent may parent grant, in an amount determined in years in a child’s life in the child’s intellec- accordance with subsection (c), for each use any grant funds awarded for an academic year that are not used in the academic year, tual and emotional development. States child for which the qualifying parent re- could use the funds for home visiting pro- mains outside the labor force. for use in a subsequent academic year, sub- ject to paragraph (1)(A). grams, parenting education, high-quality (2) QUALIFYING PARENT.—In this section, (e) RESEARCH AND EVALUATION.— child care, and preventive health services. the term ‘‘qualifying parent’’ means an indi- (1) IN GENERAL.—From the amounts appro- States would have great flexibility in decid- vidual who— priated to carry out this section for each fis- ing which services to provide. (A) is the custodial parent of a child under cal year, the Secretary shall reserve 2 per- SECTION II—‘‘PARENT GRANTS’’ the age of 6; cent of such amounts to pay for the costs of The bill would create a new education as- (B) has no earned income as defined in sec- conducting, through grant, contract, or sistance program to provide grants to par- tion 32(c)(2) of the Internal Revenue Code of interagency agreement, research and evalua- ents who choose to remain with young chil- 1986; and tion projects regarding the parent grants dren. The grants would allow parents to ob- (C) is not receiving assistance under a awarded in accordance with the require- tain the training, or re-training, needed to State program funded under part A of title ments of this section. In conducting such prosper and advance careers after a period of IV of the Social Security Act (42 U.S.C. 601 projects, the Secretary shall give priority to time outside the labor force. A custodial par- et seq.) or supplemental security income projects that are undertaken by independent ent with children under the age of six and no benefits under title XVI of the Social Secu- and impartial organizations. earned income, welfare, or SSI receipt would rity Act (42 U.S.C. 1381 et seq.). (2) REPORT.—Not later than 4 years after be eligible to receive a benefit equivalent to (3) DISTRIBUTION.—Funds under this sec- the date of enactment of this section, the the largest Pell Grant available for that year tion shall be disbursed and made available to Secretary shall submit a report to Congress (about $2,700 in FY 1998). The benefit—to be qualifying parents in the same manner as on the research and evaluation projects con- called a ‘‘Parent Grant’’—could only be used Federal Pell Grants are disbursed and made ducted in accordance with this subsection. for expenses associated with post-secondary available to institutions of higher education (f) AUTHORIZATION OF APPROPRIATIONS.— education or completion of high school. Par- and students under subpart 1 of part A of There are authorized to be appropriated to ents could accumulate grants (one for each title IV of the Higher Education Act of 1965 carry out this section such sums as may be year outside of the labor market) but would (20 U.S.C. 1070a et seq.), except that in the necessary for fiscal year 2000 and each suc- be required to use the grant within 15 years case of a parent grant awarded to a qualify- ceeding fiscal year. of the year for which the grant was earned. ing parent for expenses incurred in obtaining Eligibility would be subjected to income lim- a secondary school diploma or its recognized THE ENHANCING FAMILY LIFE ACT OF 1999— its ($75,000/year maximum, subject to revi- equivalent, the Secretary shall make the BRIEF DESCRIPTION OF PROVISIONS sion on the basis of cost estimates). The pro- grant funds available to the qualifying par- gram would be administered by the Edu- ent. (Based on the 1997 Francis Boyer Lecture by (c) AMOUNT.— Professor James Q. Wilson) cation Department, in parallel with Pell (1) IN GENERAL.—Subject to paragraph (2), SECTION 1. SHORT TITLE Grants and other financial aid programs. the amount of a parent grant for which a This Act may be cited as the ‘‘Enhancing qualifying parent is eligible under this sec- Family Life Act of 1999.’’ By Mr. MOYNIHAN: S. 209. A bill to prohibit States from tion for an academic year is equal to— SECTION 2. FINDINGS (A) in the case of a qualifying parent with imposing a family cap under the pro- The Congressional findings support the im- gram of temporary assistance to needy an annual income of $50,000 or less, the maxi- portance of families in society and social mum amount of the Federal Pell Grant policy. families; to the Committee on Finance. awarded under subpart 1 of part A of title IV LEGISLATION TO PROHIBIT THE FAMILY CAP TITLE I—ASSISTANCE FOR CHILDREN of the Higher Education Act of 1965 for such Mr. MOYNIHAN. Mr. President, I rise SECTION 101. ‘‘SECOND CHANCE HOMES’’ year; and today to introduce legislation to pro- (B) in the case of a qualifying parent with The bill would provide $45 million annually an annual income of more than $50,000 but to establish or expand ‘‘second chance’’ ma- hibit states from imposing the so not more than $75,000, 1⁄2 of the maximum ternity homes for unwed teenage mothers. called ‘‘family cap’’ as part of their amount of the Federal Pell Grant so awarded These are group homes where mothers live Temporary Assistance to Needy Fami- for such year. with their children under adult supervision lies (TANF) programs. The ‘‘family January 19, 1999 CONGRESSIONAL RECORD — SENATE S651 cap’’ is a policy under which a child FAMILY CAP PROHIBITION ACT OF 1999—BRIEF covery is occurring right here in the born to a poor family on assistance is DESCRIPTION OF PROVISIONS United States, not in Europe like past simply ignored when calculating the I. Prohibition on Imposition of a Family Cap ages of scientific discovery. And it is family’s benefit—as if the child, this The bill prohibits a state from imposing a centered in New York City. This heroic new infant, did not exist and had no ‘‘family cap’’ as part of its Temporary As- age of medical science started in the needs. More than 20 states have im- sistance for Needy Families (TANF) pro- late 1930s. Before then, the average pa- posed some version of this cap as part gram. Under the 1996 welfare law states are tient was probably as well off, perhaps permitted to deny additional assistance to of their TANF programs. families on TANF when another child is born better, out of a hospital as in one. As I have said in previous debate on to that family and 23 states have done so in Progress from that point sixty years this subject, these children have not some way. This policy, known as the ‘‘family ago has been remarkable. The last few asked to be conceived, and they have cap,’’ would be prohibited. decades have brought us images of the not asked to come into the world. We II. Penalty inside of the human body based on the have an elemental responsibility to A state found in violation of this policy magnetic resonance of bodily tissues; them. And so states ought not deny would lose TANF funding. laser surgery; micro surgery for re- benefits to these children because of attaching limbs; and organ transplan- the actions of their parents. By Mr. MOYNIHAN: tation, among other wonders. Physi- We recently received the results of an S. 210. A bill to establish a medical cians are now working on a gene ther- evaluation of welfare reform in New education trust fund, and for other pur- apy that might eventually replace by- Jersey, the first state to impose such a poses; to the Committee on Finance. pass surgery. I can hardly imagine ‘‘family cap.’’ As it is only one study, MEDICAL EDUCATION TRUST FUND ACT OF 1999 what might be next. one should be cautious about general- Mr. MOYNIHAN. Mr. President, After months of hearings and debate izing from the results. Still, it was today I introduce legislation that on the President’s Health Security Act, striking to note according to the would establish a Medical Education I became convinced that special provi- study, that over the four-year observa- Trust Fund to support America’s 144 sions would have to be made for medi- tion period ‘‘[m]embers of the experi- accredited medical schools and 1,250 cal schools, teaching hospitals, and mental group [i.e. those under a family graduate medical education teaching medical research if we were not to see cap] also experienced an abortion rate institutions. These institutions are na- this great moment in medical science that was 14 percent higher than the tional treasures; they are the very best suddenly constrained. To that end, control group [i.e. those not under a in the world. Yet today they find them- when the Committee on Finance voted cap].’’ Is that really the outcome that selves in a precarious financial situa- 12 to 8 on July 2, 1994 to report the authors of the 1996 welfare law in- tion as market forces reshape the Health Security Act, it included a tended? Further, the evaluation notes health care delivery system in the Graduate Medical Education and Aca- of the New Jersey welfare reform ef- United States. Explicit and dedicated demic Health Centers Trust Fund. The fort, of which the cap as a component, funding for these institutions, which Trust Fund provided an 80 percent in- that ‘‘[w]e found no evidence that [the this legislation will provide, will en- crease in federal funding for academic program] had any systemic positive sure that the United States continues medicine; as importantly, it rep- impact on employment, employment to lead the world in the quality of its resented stable, long-term funding. stability, or earnings among AFDC re- health care system. While nothing came of the effort to cipients.’’ That is, it did little to move This legislation requires that the enact universal health care coverage, welfare recipients to work, the osten- public sector, through the Medicare the medical education trust fund en- sible objective of the 1996 welfare law. and Medicaid programs, and the pri- joyed widespread support. An amend- And so, with this bit of evidence to vate sector, through an assessment on ment by Senator Malcolm Wallop to reinforce my original position, I pro- health insurance premiums, contribute kill the trust fund by striking the pose today to end the family cap, and I broad-based and fair financial support. source of its revenue—a 1.75 percent as- ask unanimous consent that a sum- My particular interest in this subject sessment on health insurance pre- mary of the legislation and its full text began in 1994, when the Finance Com- miums—failed on a 7–13 vote in the Fi- be included in the RECORD. mittee took up the President’s Health There being no objection, the mate- nance Committee. Security Act. I was Chairman of the I continued to press the issue in the rials were ordered to be printed in the Committee at the time. In January of first session of the 104th Congress. On RECORD, as follows: that year, I asked Dr. Paul Marks, September 29, 1995, during Finance S. 209 M.D., President of Memorial Sloan- Committee consideration of budget Be it enacted by the Senate and House of Rep- reconciliation legislation, I offered an resentatives of the United States of America in Kettering Cancer Center in New York Congress assembled, City, if he would arrange a ‘‘seminar’’ amendment to establish a similar trust SECTION 1. PROHIBITION ON IMPOSITION OF A for me on health care issues. He agreed, fund. My amendment failed on a tie FAMILY CAP UNDER THE TANF PRO- and gathered a number of medical vote, 10 to 10. Notably, however, the GRAM. school deans together one morning in House version of the reconciliation bill (a) PROHIBITION.—Section 408(a) of the So- New York. did include a graduate medical edu- cial Security Act (42 U.S.C. 608(a)) is amend- Early on in the meeting, one of the cation trust fund. That provision ulti- ed by adding at the end the following: seminarians remarked that the Univer- ‘‘(12) BAN ON FAMILY CAP.—A State to mately passed both houses as part of which a grant is made under section 403 may sity of Minnesota might have to close the conference agreement, which was not, under the State program funded under its medical school. In an instant I real- subsequently vetoed by President Clin- this part, deny assistance to a family in re- ized I had heard something new. Min- ton. The budget resolution for fiscal spect of an individual because the individual nesota is a place where they open medi- year 1997 as passed by Congress also ap- was born after the family became eligible for cal schools, not close them. How, then, peared to assume that a similar trust or began receiving assistance under the pro- could this be? The answer was that fund was to be included in the Medicare gram.’’. Minnesota, being Minnesota, was a reconciliation bill—a bill which never (b) PENALTY.—Section 409(a) of the Social Security Act (42 U.S.C. 609(a)) is amended by leading state in the growth of competi- materialized. adding at the end the following: tive health care markets, in which The Chairman of the House Ways and ‘‘(15) NO TANF FUNDS FOR PROGRAM WITH managed care organizations try to de- Means Committee, Representative BILL FAMILY CAP.—Notwithstanding any other liver services at lower costs. In this en- ARCHER, was largely responsible for the provision of this part, a State that violates vironment, HMOs and the like do not inclusion of trust fund provisions in section 408(a)(12) during a fiscal year shall send patients to teaching hospitals, ab- the Balanced Budget Act of 1995 and remit to the Secretary all funds paid to the sent which you cannot have a medical the budget resolution for fiscal year State under this part for the fiscal year, and 1997. He and I share a strong commit- no payment shall be made under this part to school. a State that has in effect a program that We are in the midst of a great era of ment to ensuring the continued success would be funded under this part but for a discovery in medical science. It is cer- of our system of medical education. In- law, regulation, or policy that is inconsist- tainly not a time to close medical deed, Chairman ARCHER and I were ent with such section.’’. schools. This great era of medical dis- both honored in 1996 to receive the S652 CONGRESSIONAL RECORD — SENATE January 19, 1999 American Association of Medical Col- tablished as a temporary, yet impor- medical schools and teaching institu- leges’ Public Service Excellence tant source of support for GME until tions. Pitting GME against other im- Award. Federal law—like the bill I am intro- portant federal priorities would likely That is the history of this effort, ducing today—can be passed by Con- result in a substantial reduction in the briefly stated. gress. While New York has historically federal commitment to GME. Medical education is one of Ameri- recognized the value of supporting None of the foregoing is meant to ca’s most precious public resources. GME through the state funding pools, suggest that the new competitive Within our increasingly competitive this source of funding is currently in forces reshaping health care have health care system, it is rapidly be- jeopardy of not being reauthorized by brought only negative results. To the coming a public good—that is, a good the state legislature. contrary, the onset of competition has from which everyone benefits, but for It is obvious that teaching hospitals had many beneficial effects, the re- which no one is willing to pay. There- can no longer rely on higher payments straint of growth on average in health fore, it should be explicitly financed from private payers to do so. Nor insurance premiums being the most ob- with contributions from all sectors of should they. The establishment of this vious. But as Monsignor Charles J. the health care system, not just the trust fund, which explicitly reimburses Fahey of Fordham warned in testi- Medicare program as is the case today. teaching hospitals for the costs of mony before the Finance Committee in The fiscal pressures of a competitive graduate medical education, will en- 1994, we must be wary of the health market are increasingly closing sure that teaching hospitals can pursue ‘‘commodification of health care,’’ by off traditional implicit revenue sources their vitally important patient care, which he meant that health care is not (such as additional payments from pri- training, and research missions in the just another commodity. We can rely vate payers) that have supported medi- face of an increasingly competitive on competition to hold down costs in cal schools, graduate medical edu- health system. much of the health system, but we cation, and research until now. In its Medical schools also face an uncer- must not allow it to bring a premature June, 1995 Report to Congress, the Pro- tain future. There are many policy end to this great age of medical discov- spective Payment Assessment Commis- issues that need to be examined regard- ery, an age made possible by this coun- sion (ProPAC), created to advise Con- ing the role of medical schools in our try’s exceptionally well-trained health gress on Medicare Hospital Insurance health system, but two threats faced professionals and superior medical (Part A) payment, summarized the sit- by medical schools require immediate schools and teaching hospitals. This uation of teaching hospitals as follows: attention. This legislation addresses legislation complements a competitive As competition in the health care system both. First, many medical schools are health market by providing tax-sup- intensifies, the additional costs borne by immediately threatened by the dire fi- ported funding for the public services teaching hospitals will place them at a dis- provided by teaching hospitals and advantage relative to other facilities. The nancial condition of their affiliated teaching hospitals. Medical schools medical schools. role, scale, function, and number of these in- Accordingly, the Medical Education stitutions increasingly will be chal- rely on teaching hospitals to provide a lenged. . . . Accelerating price competition place for their faculty to practice and Trust Fund established in the legisla- in the private sector . . . is reducing the perform research, a place to send third tion I have just reintroduced would re- ability of teaching hospitals to obtain the and fourth-year medical school stu- ceive funding from three sources broad- higher patient care rates from other payers dents for training, and for some direct ly representing the entire health care that traditionally have contributed to fi- revenues. By improving the financial system: a 1.5 percent tax on health in- nancing the costs associated with graduate surance premiums (the private sector’s medical education. condition of teaching hospitals, this legislation significantly improves the contribution), Medicare and Medicaid ProPAC’s June, 1996 Report to Con- (the latter two sources comprising the gress confirmed that ‘‘major teaching outlook for medical schools. The second immediate threat faced public sector’s contribution). The rel- hospitals have the dual problems of by medical schools stems from their re- ative contribution from each of these higher overall losses from uncompen- sources will be in rough proportion to sated care and less above-cost revenue liance on a portion of the clinical prac- tice revenue generated by their fac- the medical education costs attrib- from private insurers.’’ utable to their respective covered pop- The State of New York provides a ulties to support their operations. As competition within the health system ulations. good example of what is happening as Over the five years following enact- intensifies and managed care pro- health care markets become more com- ment, the Medical Education Trust liferates, these revenues are shrinking. petitive. Effective at the end of the 1996 Fund provides average annual pay- This legislation provides payments to calendar year, New York repealed a ments of about $17 billion. The tax on state law that set hospital rates. Hos- medical schools from the Trust Fund health insurance premiums (including pitals must now negotiate their fees that are designed to partially offset self-insured health plans) raises ap- with each and every health plan in the this loss of revenue. proximately $5 billion per year for the As we begin the 106th Congress, the state. Where teaching hospitals were Trust Fund. Federal health programs Bipartisan Commission on the Future once guaranteed a payment that recog- contribute about $12 billion per year to of Medicare as established in the Bal- nized, to some degree, its higher costs the Trust Fund: $8 billion of current anced Budget Act of 1997 is debating its of providing services, the private sector Medicare graduate medical education recommendations to assure the long- is free to squeeze down payments to payments and $4 billion in federal Med- hospitals with no such recognition. term solvency and viability of the icaid spending. While the State of New York operates Medicare program. One of the most im- This legislation is only a first step. It funding pools that provide partial sup- portant policy discussions the Commis- establishes the principle that, as a pub- port for graduate medical education sion has undertaken centers on Medi- lic good, medical education should be and uncompensated care, it is largely care’s role in the funding of Graduate supported by dedicated, long-term Fed- up to the teaching hospitals to try to Medical Education. In order to remain eral funding. To ensure that the United win higher rates than other hospitals the world leader in graduate medical States continues to lead the world in when negotiating contracts with education, we must continue to main- the quality of its medical education health plans. Some may succeed in tain Medicare’s commitment to GME and its health system as a whole, the doing so, but most will probably not. and to the nation’s teaching hospitals. legislation would also create a Medical New York’s state law was unique, but I urge the Commission to maintain Education Advisory Commission to the same process of negotiation be- GME support through the Medicare conduct a thorough study and make tween hospitals and private health program in order to assure a stable, recommendations, including the poten- plant takes place across the country. federal source of funding. Several Com- tial use of demonstration projects, re- Who, in this context, will pay for the mission members have raised the garding the following: higher costs of operating teaching hos- alarming idea of subjecting GME to an Alternative and additional sources of pitals? annual appropriations process. I urge medical education financing; It is worth mentioning that the NY my colleagues to reject this dangerous Alternative methodologies for fi- state funding pools for GME were es- notion. It would be a tragedy for our nancing medical education; January 19, 1999 CONGRESSIONAL RECORD — SENATE S653 Policies designed to maintain supe- are available to the Secretary for making paragraph for the previous fiscal year up- rior research and educational capac- payments under sections 2202 and 2203. dated through the midpoint of such previous ities in an increasingly competitive ‘‘(c) INVESTMENT.— fiscal year by the estimated percentage health system; ‘‘(1) IN GENERAL.—The Secretary of the change in the general health care inflation Treasury shall invest amounts in the ac- factor (as defined in subsection (d)) during The appropriate role of medical counts of the Trust Fund which the Sec- the 12-month period ending at that midpoint, schools in graduate medical education; retary determines are not required to meet with appropriate adjustments to reflect pre- and current withdrawals from the Trust Fund. vious underestimations or overestimations Policies designed to expand eligi- Such investments may be made only in in- under this subparagraph in the projected bility for graduate medical education terest-bearing obligations of the United health care inflation factor. payments to institutions other than States. For such purpose, such obligations ‘‘(2) AMOUNT OF PAYMENTS FOR MEDICAL teaching hospitals, including children’s may be acquired on original issue at the SCHOOLS.— hospitals. issue price, or by purchase of outstanding ob- ‘‘(A) IN GENERAL.—Subject to the annual Mr. President, the services provided ligations at the market price. amount available under paragraph (1) for a ‘‘(2) SALE OF OBLIGATIONS.—The Secretary fiscal year, the amount of payments required by this Nation’s teaching hospitals and of the Treasury may sell at market price any under subsection (a) to be made to a medical medical schools—groundbreaking re- obligation acquired under paragraph (1). school that submits to the Secretary an ap- search, highly skilled medical care, ‘‘(3) AVAILABILITY OF INCOME.—Any interest plication for such year in accordance with and the training of tomorrow’s physi- derived from obligations held in each such subsection (a)(2) is an amount equal to an cians—are vitally important and must account, and proceeds from any sale or re- amount determined by the Secretary in ac- be protected in this time of intense demption of such obligations, are hereby ap- cordance with subparagraph (B). economic competition in the health propriated to such account. ‘‘(B) DEVELOPMENT OF FORMULA.—The Sec- system. ‘‘(d) MONETARY GIFTS TO TRUST FUND.— retary shall develop a formula for allocation There are appropriated to the Trust Fund of funds to medical schools under this sec- I ask unanimous consent that a sum- such amounts as may be unconditionally do- tion consistent with the purpose described in mary of the bill and the text of the bill, nated to the Federal Government as gifts to subsection (a)(3). respectively, be included in the the Trust Fund. Such amounts shall be allo- ‘‘(c) MEDICAL SCHOOL DEFINED.—For pur- RECORD. cated and transferred to the accounts de- poses of this section, the term ‘medical There being no objection, the mate- scribed in subsection (a) in the same propor- school’ means a school of medicine (as de- rials were ordered to be printed in the tion as the amounts in each of the accounts fined in section 799 of the Public Health RECORD, as follows: bears to the total amount in all the accounts Service Act) or a school of osteopathic medi- of the Trust Fund. cine (as defined in such section). S. 210 ‘‘SEC. 2202. PAYMENTS TO MEDICAL SCHOOLS. ‘‘(d) GENERAL HEALTH CARE INFLATION FAC- Be it enacted by the Senate and House of ‘‘(a) FEDERAL PAYMENTS TO MEDICAL TOR.—The term ‘general health care infla- Representatives of the United States of America SCHOOLS FOR CERTAIN COSTS.— tion factor’ means the Consumer Price Index in Congress assembled, ‘‘(1) IN GENERAL.—In the case of a medical for Medical Services as determined by the SECTION 1. SHORT TITLE; TABLE OF CONTENTS. school that in accordance with paragraph (2) Bureau of Labor Statistics. (a) SHORT TITLE.—This Act may be cited as submits to the Secretary an application for ‘‘SEC. 2203. PAYMENTS TO TEACHING HOSPITALS. the ‘‘Medical Education Trust Fund Act of fiscal year 2000 or any subsequent fiscal year, ‘‘(a) FORMULA PAYMENTS TO ELIGIBLE ENTI- 1999’’. the Secretary shall make payments for such TIES.— (b) TABLE OF CONTENTS.—The table of con- year to the medical school for the purpose ‘‘(1) IN GENERAL.—In the case of any fiscal tents of this Act is as follows: specified in paragraph (3). The Secretary year beginning after September 30, 1999, the Sec. 1. Short title; table of contents. shall make such payments from the Medical Secretary shall make payments to each eli- Sec. 2. Medical Education Trust Fund. School Account in an amount determined in gible entity that, in accordance with para- Sec. 3. Amendments to medicare program. accordance with subsection (b), and may ad- graph (2), submits to the Secretary an appli- Sec. 4. Amendments to medicaid program. minister the payments as a contract, grant, cation for such fiscal year. Such payments Sec. 5. Assessments on insured and self-in- or cooperative agreement. shall be made from the Trust Fund, and the sured health plans. ‘‘(2) APPLICATION FOR PAYMENTS.—For pur- total of the payments to the eligible entity Sec. 6. Medical Education Advisory Commis- poses of paragraph (1), an application for for the fiscal year shall equal the sum of the sion. payments under such paragraph for a fiscal amounts determined under subsections (b), Sec. 7. Demonstration projects. year is in accordance with this paragraph (c), (d), and (e) with respect to such entity. SEC. 2. MEDICAL EDUCATION TRUST FUND. if— ‘‘(2) APPLICATION.—For purposes of para- The Social Security Act (42 U.S.C. 300 et ‘‘(A) the medical school involved submits graph (1), an application shall contain such seq.) is amended by adding after title XXI the application not later than the date speci- information as may be necessary for the Sec- the following new title: fied by the Secretary; and retary to make payments under such para- ‘‘TITLE XXII—MEDICAL EDUCATION ‘‘(B) the application is in such form, is graph to an eligible entity during a fiscal TRUST FUND made in such manner, and contains such year. An application shall be treated as sub- agreements, assurances, and information as mitted in accordance with this paragraph if ‘‘TABLE OF CONTENTS OF TITLE the Secretary determines to be necessary to it is submitted not later than the date speci- ‘‘Sec. 2201. Establishment of Trust Fund. carry out this section. fied by the Secretary, and is made in such ‘‘Sec. 2202. Payments to medical schools. ‘‘(3) PURPOSE OF PAYMENTS.—The purpose form and manner as the Secretary may re- ‘‘Sec. 2203. Payments to teaching hos- of payments under paragraph (1) is to assist quire. pitals. medical schools in maintaining and develop- ‘‘(3) PERIODIC PAYMENTS.—Payments under ‘‘SEC. 2201. ESTABLISHMENT OF TRUST FUND. ing quality educational programs in an in- paragraph (1) to an eligible entity for a fiscal ‘‘(a) IN GENERAL.—There is established in creasingly competitive health care system. year shall be made periodically, at such in- the Treasury of the United States a fund to ‘‘(b) AVAILABILITY OF TRUST FUND FOR PAY- tervals and in such amounts as the Secretary be known as the Medical Education Trust MENTS; ANNUAL AMOUNT OF PAYMENTS.— determines to be appropriate (subject to ap- Fund (in this title referred to as the ‘Trust ‘‘(1) AVAILABILITY OF TRUST FUND FOR PAY- plicable Federal law regarding Federal pay- Fund’), consisting of the following accounts: MENTS.—The following amounts shall be ments). ‘‘(1) The Medical School Account. available for a fiscal year for making pay- ‘‘(4) ADMINISTRATOR OF PROGRAMS.—The ‘‘(2) The Medicare Teaching Hospital Indi- ments under subsection (a) from the amount Secretary shall carry out responsibility rect Account. allocated and transferred to the Medical under this title by acting through the Ad- ‘‘(3) The Medicare Teaching Hospital Di- School Account under sections 1886(l), 1936, ministrator of the Health Care Financing rect Account. 2201(c)(3), and 2201(d), and section 4503 of the Administration. ‘‘(4) The Non-Medicare Teaching Hospital Internal Revenue Code of 1986: ‘‘(5) ELIGIBLE ENTITY.—For purposes of this Indirect Account. ‘‘(A) In the case of fiscal year 2000, title, the term ‘eligible entity’, with respect ‘‘(5) The Non-Medicare Teaching Hospital $200,000,000. to any fiscal year, means— Direct Account. ‘‘(B) In the case of fiscal year 2001, ‘‘(A) for payment under subsections (b) and Each such account shall consist of such $300,000,000. (c), an entity which would be eligible to re- amounts as are allocated and transferred to ‘‘(C) In the case of fiscal year 2002, ceive payments for such fiscal year under— such account under this section, sections $400,000,000. ‘‘(i) section 1886(d)(5)(B), if such payments 1886(l) and 1936, and section 4503 of the Inter- ‘‘(D) In the case of fiscal year 2003, had not been terminated for discharges oc- nal Revenue Code of 1986. Amounts in the ac- $500,000,000. curring after September 30, 1999; counts of the Trust Fund shall remain avail- ‘‘(E) In the case of fiscal year 2004, ‘‘(ii) section 1886(h), if such payments had able until expended. $600,000,000. not been terminated for cost reporting peri- ‘‘(b) EXPENDITURES FROM TRUST FUND.— ‘‘(F) In the case of each subsequent fiscal ods beginning after September 30, 1999; or Amounts in the accounts of the Trust Fund year, the amount determined under this ‘‘(iii) both sections; or S654 CONGRESSIONAL RECORD — SENATE January 19, 1999

‘‘(B) for payment under subsections (d) and retary, would have been made in such fiscal ‘‘(ii) ALLOCATION.—Of the amount trans- (e)— year under section 1886(h) if— ferred under clause (i)— ‘‘(i) an entity which meets the requirement ‘‘(A) such payments had not been termi- ‘‘(I) there shall be allocated and trans- of subparagraph (A); or nated for cost reporting periods beginning ferred to the Medical School Account of such ‘‘(ii) an entity which the Secretary deter- after September 30, 1999; and Trust Fund an amount which bears the same mines should be considered an eligible en- ‘‘(B) non-medicare patients were taken ratio to the total amount available under tity. into account in lieu of medicare patients.’’. section 2202(b)(1) for the fiscal year (reduced ‘‘(b) DETERMINATION OF AMOUNT FROM SEC. 3. AMENDMENTS TO MEDICARE PROGRAM. by the balance in such account at the end of MEDICARE TEACHING HOSPITAL INDIRECT AC- Section 1886 of the Social Security Act (42 the preceding fiscal year) as the amount COUNT.— U.S.C. 1395ww) is amended— transferred under clause (i) bears to the total ‘‘(1) IN GENERAL.—The amount determined (1) in subsection (d)(5)(B), in the matter amounts transferred to such Trust Fund for an eligible entity for a fiscal year under preceding clause (i), by striking ‘‘The Sec- under title XXII (excluding amounts trans- this subsection is the amount equal to the retary shall provide’’ and inserting the fol- ferred under subsections (c)(3) and (d) of sec- applicable percentage of the total amount al- lowing: ‘‘For discharges occurring before Oc- tion 2201) for such fiscal year; and located and transferred to the Medicare tober 1, 1999, the Secretary shall provide’’; ‘‘(II) the remainder shall be allocated and Teaching Hospital Indirect Account under (2) in subsection (d)(11)(C), by inserting transferred to the Medicare Teaching Hos- section 1886(l)(1), and subsections (c)(3) and after ‘‘paragraph (5)(B)’’ ‘‘(notwithstanding pital Direct Account of such Trust Fund. (d) of section 2201 for such fiscal year. that payments under paragraph (5)(B) are ‘‘(B) DETERMINATION OF AMOUNTS.—For ‘‘(2) APPLICABLE PERCENTAGE.—For pur- terminated for discharges occurring after each hospital, the Secretary shall make an poses of paragraph (1), the applicable per- September 30, 1999)’’; estimate for the fiscal year involved of the centage for any fiscal year is equal to the (3) in subsection (h)— amount that would have been paid under percentage of the total payments which (A) in paragraph (1), in the first sentence, subsection (h) to the hospital during the fis- would have been made to the eligible entity by striking ‘‘the Secretary shall provide’’ cal year if such payments had not been ter- in such fiscal year under section 1886(d)(5)(B) and inserting ‘‘the Secretary shall, subject minated for cost reporting periods beginning if such payments had not been terminated to paragraph (7), provide’’; and after September 30, 1999. for discharges occurring after September 30, (B) by adding at the end the following: ‘‘(C) ALLOCATION BETWEEN FUNDS.—In pro- 1999. ‘‘(7) LIMITATION.— viding for a transfer under subparagraph (A) ‘‘(c) DETERMINATION OF AMOUNT FROM ‘‘(A) IN GENERAL.—The authority to make for a fiscal year, the Secretary shall provide MEDICARE TEACHING HOSPITAL DIRECT AC- payments under this subsection (other than for an allocation of the amounts involved be- COUNT.— payments made under paragraphs (3)(D) and tween part A and part B (and the trust funds ‘‘(1) IN GENERAL.—The amount determined (6)) shall not apply with respect to— established under the respective parts) as for an eligible entity for a fiscal year under ‘‘(i) cost reporting periods beginning after reasonably reflects the proportion of direct this subsection is the amount equal to the September 30, 1999; and graduate medical education costs of hos- applicable percentage of the total amount al- ‘‘(ii) any portion of a cost reporting period pitals associated with the provision of serv- located and transferred to the Medicare beginning on or before such date which oc- ices under each respective part.’’. Teaching Hospital Direct Account under sec- curs after such date. SEC. 4. AMENDMENTS TO MEDICAID PROGRAM. tion 1886(l)(2), and subsections (c)(3) and (d) ‘‘(B) RULE OF CONSTRUCTION.—This para- (a) IN GENERAL.—Title XIX of the Social of section 2201 for such fiscal year. graph may not be construed as authorizing Security Act (42 U.S.C. 1396 et seq.) is ‘‘(2) APPLICABLE PERCENTAGE.—For pur- any payment under section 1861(v) with re- amended by adding at the end the following: poses of paragraph (1), the applicable per- spect to graduate medical education.’’; and centage for any fiscal year is equal to the (4) by adding at the end the following: ‘‘TRANSFER OF FUNDS TO ACCOUNTS percentage of the total payments which ‘‘(l) TRANSFERS TO MEDICAL EDUCATION ‘‘SEC. 1936. (a) TRANSFER OF FUNDS.— would have been made to the eligible entity TRUST FUND.— ‘‘(1) IN GENERAL.—For fiscal year 2000 and in such fiscal year under section 1886(h) if ‘‘(1) INDIRECT COSTS OF MEDICAL EDU- each subsequent fiscal year, the Secretary such payments had not been terminated for CATION.— shall transfer to the Medical Education cost reporting periods beginning after Sep- ‘‘(A) TRANSFER.— Trust Fund established under title XXII an tember 30, 1999. ‘‘(i) IN GENERAL.—From the Federal Hos- amount equal to the amount determined ‘‘(d) DETERMINATION OF AMOUNT FROM NON- pital Insurance Trust Fund, the Secretary under subsection (b). MEDICARE TEACHING HOSPITAL INDIRECT AC- shall, for fiscal year 2000 and each subse- ‘‘(2) ALLOCATION.—Of the amount trans- COUNT.— quent fiscal year, transfer to the Medical ferred under paragraph (1)— ‘‘(1) IN GENERAL.—The amount determined Education Trust Fund an amount equal to ‘‘(A) there shall be allocated and trans- for an eligible entity for a fiscal year under the amount estimated by the Secretary ferred to the Medical School Account of such this subsection is the amount equal to the under subparagraph (B). Trust Fund an amount which bears the same applicable percentage of the total amount al- ‘‘(ii) ALLOCATION.—Of the amount trans- ratio to the total amount available under located and transferred to the Non-Medicare ferred under clause (i)— section 2202(b)(1) for the fiscal year (reduced Teaching Hospital Indirect Account for such ‘‘(I) there shall be allocated and trans- by the balance in such account at the end of fiscal year under section 1936, subsections ferred to the Medical School Account of such the preceding fiscal year) as the amount (c)(3) and (d) of section 2201, and section 4503 Trust Fund an amount which bears the same transferred under paragraph (1) bears to the of the Internal Revenue Code of 1986. ratio to the total amount available under total amounts transferred to such Trust ‘‘(2) APPLICABLE PERCENTAGE.—For pur- section 2202(b)(1) for the fiscal year (reduced Fund (excluding amounts transferred under poses of paragraph (1), the applicable per- by the balance in such account at the end of subsections (c)(3) and (d) of section 2201) for centage for any fiscal year for an eligible en- the preceding fiscal year) as the amount such fiscal year; and tity is equal to the percentage of the total transferred under clause (i) bears to the total ‘‘(B) the remainder shall be allocated and payments which, as determined by the Sec- amounts transferred to such Trust Fund transferred to the Non-Medicare Teaching retary, would have been made in such fiscal under title XXII (excluding amounts trans- Hospital Indirect Account and the Non-Medi- year under section 1886(d)(5)(B) if— ferred under subsections (c)(3) and (d) of sec- care Teaching Hospital Direct Account of ‘‘(A) such payments had not been termi- tion 2201) for such fiscal year; and such Trust Fund, in the same proportion as nated for discharges occurring after Septem- ‘‘(II) the remainder shall be allocated and the amounts transferred to each account ber 30, 1999; and transferred to the Medicare Teaching Hos- under section 1886(l) relate to the total ‘‘(B) non-medicare patients were taken pital Indirect Account of such Trust Fund. amounts transferred under such section for into account in lieu of medicare patients. ‘‘(B) DETERMINATION OF AMOUNTS.—The such fiscal year. ‘‘(e) DETERMINATION OF AMOUNT FROM NON- Secretary shall make an estimate for each ‘‘(b) AMOUNT DETERMINED.— MEDICARE TEACHING HOSPITAL DIRECT AC- fiscal year involved of the nationwide total ‘‘(1) OUTLAYS FOR ACUTE MEDICAL SERVICES COUNT.— of the amounts that would have been paid DURING PRECEDING FISCAL YEAR.—Beginning ‘‘(1) IN GENERAL.—The amount determined under subsection (d)(5)(B) to hospitals during with fiscal year 2000, the Secretary shall de- for an eligible entity for a fiscal year under the fiscal year if such payments had not been termine 5 percent of the total amount of this subsection is the amount equal to the terminated for discharges occurring after Federal outlays made under this title for applicable percentage of the total amount al- September 30, 1999. acute medical services, as defined in para- located and transferred to the Non-Medicare ‘‘(2) DIRECT COSTS OF MEDICAL EDUCATION.— graph (2), for the preceding fiscal year. Teaching Hospital Direct Account for such ‘‘(A) TRANSFER.— ‘‘(2) ACUTE MEDICAL SERVICES DEFINED.— fiscal year under section 1936, subsections ‘‘(i) IN GENERAL.—From the Federal Hos- The term ‘acute medical services’ means (c)(3) and (d) of section 2201, and section 4503 pital Insurance Trust Fund and the Federal items and services described in section of the Internal Revenue Code of 1986. Supplementary Medical Insurance Trust 1905(a) other than the following: ‘‘(2) APPLICABLE PERCENTAGE.—For pur- Fund, the Secretary shall, for fiscal year 2000 ‘‘(A) Nursing facility services (as defined in poses of paragraph (1), the applicable per- and each subsequent fiscal year, transfer to section 1905(f)). centage for any fiscal year for an eligible en- the Medical Education Trust Fund an ‘‘(B) Intermediate care facility for the tity is equal to the percentage of the total amount equal to the amount estimated by mentally retarded services (as defined in sec- payments which, as determined by the Sec- the Secretary under subparagraph (B). tion 1905(d)). January 19, 1999 CONGRESSIONAL RECORD — SENATE S655

‘‘(C) Personal care services (as described in ‘‘(A) liabilities incurred under workers’ ‘‘(1) IN GENERAL.—The tax imposed by sub- section 1905(a)(24)). compensation laws, section (a) shall be paid by the plan sponsor. ‘‘(D) Private duty nursing services (as re- ‘‘(B) tort liabilities, ‘‘(2) PLAN SPONSOR.—For purposes of para- ferred to in section 1905(a)(8)). ‘‘(C) liabilities relating to ownership or use graph (1), the term ‘plan sponsor’ means— ‘‘(E) Home or community-based services of property, ‘‘(A) the employer in the case of a plan es- furnished under a waiver granted under sub- ‘‘(D) credit insurance, or tablished or maintained by a single em- section (c), (d), or (e) of section 1915. ‘‘(E) such other similar liabilities as the ployer, ‘‘(F) Home and community care furnished Secretary may specify by regulations. ‘‘(B) the employee organization in the case to functionally disabled elderly individuals ‘‘(3) SPECIAL RULE WHERE POLICY PROVIDES of a plan established or maintained by an under section 1929. OTHER COVERAGE.—In the case of any taxable employee organization, or ‘‘(G) Community supported living arrange- health insurance policy under which ‘‘(C) in the case of— ments services under section 1930. amounts are payable other than for accident ‘‘(i) a plan established or maintained by 2 ‘‘(H) Case-management services (as de- or health coverage, in determining the or more employers or jointly by 1 or more scribed in section 1915(g)(2)). amount of the tax imposed by subsection employers and 1 or more employee organiza- ‘‘(I) Home health care services (as referred (a)(1) on any premium paid under such pol- tions, to in section 1905(a)(7)), clinic services, and icy, there shall be excluded the amount of ‘‘(ii) a voluntary employees’ beneficiary rehabilitation services that are furnished to the charge for the nonaccident or nonhealth association under section 501(c)(9), or an individual who has a condition or disabil- coverage if— ‘‘(iii) any other association plan, ity that qualifies the individual to receive ‘‘(A) the charge for such nonaccident or the association, committee, joint board of any of the services described in a previous nonhealth coverage is either separately stat- trustees, or other similar group of represent- subparagraph. ed in the policy, or furnished to the policy- atives of the parties who establish or main- ‘‘(J) Services furnished in an institution holder in a separate statement, and tain the plan. for mental diseases (as defined in section ‘‘(B) such charge is reasonable in relation ‘‘(c) APPLICABLE SELF-INSURED HEALTH 1905(i)). to the total charges under the policy. PLAN.—For purposes of this section, the ‘‘(c) ENTITLEMENT.—This section con- In any other case, the entire amount of the term ‘applicable self-insured health plan’ stitutes budget authority in advance of ap- premium paid under such policy shall be sub- means any plan for providing accident or propriations Acts and represents the obliga- ject to tax under subsection (a)(1). health coverage if any portion of such cov- tion of the Federal Government to provide ‘‘(4) TREATMENT OF PREPAID HEALTH COV- erage is provided other than through an in- for the payment to the Non-Medicare Teach- ERAGE ARRANGEMENTS.— surance policy. ing Hospital Indirect Account, the Non-Medi- ‘‘(A) IN GENERAL.—In the case of any ar- ‘‘(d) ACCIDENT OR HEALTH COVERAGE EX- care Teaching Hospital Direct Account, and rangement described in subparagraph (B)— PENDITURES.—For purposes of this section— the Medical School Account of amounts de- ‘‘(i) such arrangement shall be treated as a ‘‘(1) IN GENERAL.—The accident or health termined in accordance with subsections (a) taxable health insurance policy, coverage expenditures of any applicable self- and (b).’’. ‘‘(ii) the payments or premiums referred to insured health plan for any month are the (b) EFFECTIVE DATE.—The amendment in subparagraph (B)(i) shall be treated as aggregate expenditures paid in such month made by subsection (a) shall be effective on premiums received for a taxable health in- for accident or health coverage provided and after October 1, 1999. surance policy, and under such plan to the extent such expendi- SEC. 5. ASSESSMENTS ON INSURED AND SELF-IN- ‘‘(iii) the person referred to in subpara- tures are not subject to tax under section SURED HEALTH PLANS. graph (B)(i) shall be treated as the issuer. 4501. (a) GENERAL RULE.—Subtitle D of the In- ‘‘(B) DESCRIPTION OF ARRANGEMENTS.—An ‘‘(2) TREATMENT OF REIMBURSEMENTS.—In ternal Revenue Code of 1986 (relating to mis- arrangement is described in this subpara- determining accident or health coverage ex- cellaneous excise taxes) is amended by add- graph if under such arrangement— penditures during any month of any applica- ing after chapter 36 the following new chap- ‘‘(i) fixed payments or premiums are re- ble self-insured health plan, reimbursements ter: ceived as consideration for any person’s (by insurance or otherwise) received during ‘‘CHAPTER 37—HEALTH RELATED agreement to provide or arrange for the pro- such month shall be taken into account as a ASSESSMENTS vision of accident or health coverage to resi- reduction in accident or health coverage ex- ‘‘SUBCHAPTER A. Insured and self-insured dents of the United States, regardless of how penditures. health plans. such coverage is provided or arranged to be ‘‘(3) CERTAIN EXPENDITURES DISREGARDED.— Paragraph (1) shall not apply to any expendi- ‘‘Subchapter A—Insured and Self-Insured provided, and ture for the acquisition or improvement of Health Plans ‘‘(ii) substantially all of the risks of the rates of utilization of services is assumed by land or for the acquisition or improvement ‘‘Sec. 4501. Health insurance and health-re- such person or the provider of such services. of any property to be used in connection lated administrative services. ‘‘(d) HEALTH-RELATED ADMINISTRATIVE with the provision of accident or health cov- ‘‘Sec. 4502. Self-insured health plans. SERVICES.—For purposes of this section, the erage which is subject to the allowance ‘‘Sec. 4503. Transfer to accounts. term ‘health-related administrative services’ under section 167, except that, for purposes ‘‘Sec. 4504. Definitions and special rules. means— of paragraph (1), allowances under section ‘‘SEC. 4501. HEALTH INSURANCE AND HEALTH-RE- ‘‘(1) the processing of claims or perform- 167 shall be considered as expenditures. LATED ADMINISTRATIVE SERVICES. ance of other administrative services in con- ‘‘SEC. 4503. TRANSFER TO ACCOUNTS. ‘‘(a) IMPOSITION OF TAX.—There is hereby nection with accident or health coverage ‘‘For fiscal year 2000 and each subsequent imposed— under a taxable health insurance policy if fiscal year, there are hereby appropriated ‘‘(1) on each taxable health insurance pol- the charge for such services is not included and transferred to the Medical Education icy, a tax equal to 1.5 percent of the pre- in the premiums under such policy, and Trust Fund under title XXII of the Social Se- miums received under such policy, and ‘‘(2) processing claims, arranging for provi- curity Act amounts equivalent to taxes re- ‘‘(2) on each amount received for health-re- sion of accident or health coverage, or per- ceived in the Treasury under sections 4501 lated administrative services, a tax equal to forming other administrative services in and 4502, of which— 1.5 percent of the amount so received. connection with an applicable self-insured ‘‘(1) there shall be allocated and trans- ‘‘(b) LIABILITY FOR TAX.— health plan (as defined in section 4502(c)) es- ferred to the Medical School Account of such ‘‘(1) HEALTH INSURANCE.—The tax imposed tablished or maintained by a person other Trust Fund an amount which bears the same by subsection (a)(1) shall be paid by the than the person performing the services. ratio to the total amount available under issuer of the policy. For purposes of paragraph (1), rules similar section 2202(b)(1) of such Act for the fiscal ‘‘(2) HEALTH-RELATED ADMINISTRATIVE to the rules of subsection (c)(3) shall apply. year (reduced by the balance in such account SERVICES.—The tax imposed by subsection ‘‘SEC. 4502. SELF-INSURED HEALTH PLANS. at the end of the preceding fiscal year) as the (a)(2) shall be paid by the person providing ‘‘(a) IMPOSITION OF TAX.—In the case of any amount transferred to such Trust Fund the health-related administrative services. applicable self-insured health plan, there is under this section bears to the total ‘‘(c) TAXABLE HEALTH INSURANCE POLICY.— hereby imposed a tax for each month equal amounts transferred to such Trust Fund (ex- For purposes of this section— to 1.5 percent of the sum of— cluding amounts transferred under sub- ‘‘(1) IN GENERAL.—Except as otherwise pro- ‘‘(1) the accident or health coverage ex- sections (c)(3) and (d) of section 2201 of such vided in this section, the term ‘taxable penditures for such month under such plan, Act) for such fiscal year; and health insurance policy’ means any insur- and ‘‘(2) the remainder shall be allocated and ance policy providing accident or health in- ‘‘(2) the administrative expenditures for transferred to the Non-Medicare Teaching surance with respect to individuals residing such month under such plan to the extent Hospital Indirect Account and the Non-Medi- in the United States. such expenditures are not subject to tax care Teaching Hospital Direct Account of ‘‘(2) EXEMPTION OF CERTAIN POLICIES.—The under section 4501. such Trust Fund, in the same proportion as term ‘taxable health insurance policy’ does In determining the amount of expenditures the amounts transferred to such account not include any insurance policy if substan- under paragraph (2), rules similar to the under section 1886(l) of such Act relate to the tially all of the coverage provided under such rules of subsection (d)(3) apply. total amounts transferred under such section policy relates to— ‘‘(b) LIABILITY FOR TAX.— for such fiscal year. S656 CONGRESSIONAL RECORD — SENATE January 19, 1999 Such amounts shall be transferred in the to premiums received, and expenses in- mission shall serve for the lesser of the life same manner as under section 9601. curred, with respect to coverage for periods of the Advisory Commission, or 4 years. ‘‘SEC. 4504. DEFINITIONS AND SPECIAL RULES. after September 30, 1999. (2) SERVICE BEYOND TERM.—A member of ‘‘(a) DEFINITIONS.—For purposes of this SEC. 6. MEDICAL EDUCATION ADVISORY COMMIS- the Advisory Commission may continue to subchapter— SION. serve after the expiration of the term of the ‘‘(1) ACCIDENT OR HEALTH COVERAGE.—The (a) ESTABLISHMENT.—There is hereby es- member until a successor is appointed. term ‘accident or health coverage’ means tablished an advisory commission to be (e) VACANCIES.—If a member of the Advi- any coverage which, if provided by an insur- known as the Medical Education Advisory sory Commission does not serve the full term ance policy, would cause such policy to be a Commission (in this section referred to as applicable under subsection (d), the individ- taxable health insurance policy (as defined the ‘‘Advisory Commission’’). ual appointed to fill the resulting vacancy in section 4501(c)). (b) DUTIES.— shall be appointed for the remainder of the ‘‘(2) INSURANCE POLICY.—The term ‘insur- (1) IN GENERAL.—The Advisory Commission term of the predecessor of the individual. ance policy’ means any policy or other in- shall— (f) CHAIR.—The Secretary of Health and strument whereby a contract of insurance is (A) conduct a thorough study of all mat- Human Services shall designate an individ- issued, renewed, or extended. ters relating to— ual to serve as the Chair of the Advisory ‘‘(3) PREMIUM.—The term ‘premium’ means (i) the operation of the Medical Education Commission. the gross amount of premiums and other Trust Fund established under section 2201 of (g) MEETINGS.—The Advisory Commission consideration (including advance premiums, the Social Security Act (as added by section shall meet not less than once during each 4- deposits, fees, and assessments) arising from 2); month period and shall otherwise meet at policies issued by a person acting as the pri- (ii) alternative and additional sources of the call of the Secretary of Health and mary insurer, adjusted for any return or ad- graduate medical education funding; Human Services or the Chair. ditional premiums paid as a result of en- (iii) alternative methodologies for com- (h) COMPENSATION AND REIMBURSEMENT OF dorsements, cancellations, audits, or retro- pensating teaching hospitals for graduate EXPENSES.—Members of the Advisory Com- spective rating. Amounts returned where the medical education; mission shall receive compensation for each amount is not fixed in the contract but de- (iv) policies designed to maintain superior day (including travel time) engaged in carry- pends on the experience of the insurer or the research and educational capacities in an in- ing out the duties of the Advisory Commis- discretion of management shall not be in- creasing competitive health system; sion. Such compensation may not be in an cluded in return premiums. (v) the role of medical schools in graduate amount in excess of the maximum rate of ‘‘(4) UNITED STATES.—The term ‘United medical education; basic pay payable for level IV of the Execu- States’ includes any possession of the United (vi) policies designed to expand eligibility tive Schedule under section 5315 of title 5, States. for graduate medical education payments to United States Code. ‘‘(b) TREATMENT OF GOVERNMENTAL ENTI- (i) STAFF.— TIES.— children’s hospitals that operate graduate (1) STAFF DIRECTOR.—The Advisory Com- ‘‘(1) IN GENERAL.—For purposes of this medical education programs; and mission shall, without regard to the provi- subchapter— (vii) policies designed to expand eligibility sions of title 5, United States Code, relating ‘‘(A) the term ‘person’ includes any govern- for graduate medical education payments to to competitive service, appoint a Staff Direc- mental entity, and institutions other than teaching hospitals; tor who shall be paid at a rate equivalent to ‘‘(B) notwithstanding any other law or rule (B) develop recommendations, including a rate established for the Senior Executive of law, governmental entities shall not be ex- the use of demonstration projects, on the Service under 5382 of title 5, United States empt from the taxes imposed by this sub- matters studied under subparagraph (A) in Code. chapter except as provided in paragraph (2). consultation with the Secretary of Health (2) ADDITIONAL STAFF.—The Secretary of ‘‘(2) EXEMPT GOVERNMENTAL PROGRAMS.— and Human Services and the entities de- Health and Human Services shall provide to ‘‘(A) IN GENERAL.—In the case of an exempt scribed in paragraph (2); governmental program— (C) not later than January 2001, submit an the Advisory Commission such additional ‘‘(i) no tax shall be imposed under section interim report to the Committee on Finance staff, information, and other assistance as 4501 on any premium received pursuant to of the Senate, the Committee on Ways and may be necessary to carry out the duties of such program or on any amount received for Means of the House of Representatives, and the Advisory Commission. health-related administrative services pursu- the Secretary of Health and Human Services; (j) TERMINATION OF THE ADVISORY COMMIS- ant to such program, and and SION.—The Advisory Commission shall termi- ‘‘(ii) no tax shall be imposed under section (D) not later than January 2003, submit a nate 90 days after the date on which the Ad- 4502 on any expenditures pursuant to such final report to the Committee on Finance of visory Commission submits its final report program. the Senate, the Committee on Ways and under subsection (b)(1)(D). ‘‘(B) EXEMPT GOVERNMENTAL PROGRAM.— Means of the House of Representatives, and (k) AUTHORIZATION OF APPROPRIATIONS.— For purposes of this paragraph, the term ‘ex- the Secretary of Health and Human Services. There are authorized to be appropriated such empt governmental program’ means— (2) ENTITIES DESCRIBED.—The entities de- sums as may be necessary to carry out the ‘‘(A) the insurance programs established by scribed in this paragraph are— purposes of this section. parts A and B of title XVIII of the Social Se- (A) other advisory groups, including the SEC. 7. DEMONSTRATION PROJECTS. curity Act, Council on Graduate Medical Education and (a) ESTABLISHMENT.—The Secretary of ‘‘(B) the medical assistance program estab- the Medicare Payment Advisory Commis- Health and Human Services (in this section lished by title XIX of the Social Security sion; referred to as the ‘‘Secretary’’) shall estab- Act, (B) interested parties, including the Asso- lish, by regulation, guidelines for the estab- ‘‘(C) any program established by Federal ciation of American Medical Colleges, the lishment and operation of demonstration law for providing medical care (other than Association of Academic Health Centers, and projects which the Medical Education Advi- through insurance policies) to individuals (or the American Medical Association; sory Commission recommends under section the spouses and dependents thereof) by rea- (C) health care insurers, including man- 6(b)(1)(B). son of such individuals being— aged care entities; and (b) FUNDING.— ‘‘(i) members of the Armed Forces of the (D) other entities as determined by the (1) IN GENERAL.—For any fiscal year after United States, or Secretary of Health and Human Services. 1999, amounts in the Medical Education ‘‘(ii) veterans, and (c) NUMBER AND APPOINTMENT.—The mem- Trust Fund under title XXII of the Social Se- ‘‘(D) any program established by Federal bership of the Advisory Commission shall in- curity Act shall be available for use by the law for providing medical care (other than clude 9 individuals who are appointed to the Secretary in the establishment and oper- through insurance policies) to members of Advisory Commission from among individ- ation of demonstration projects described in Indian tribes (as defined in section 4(d) of the uals who are not officers or employees of the subsection (a). Indian Health Care Improvement Act). United States. Such individuals shall be ap- (2) FUNDS AVAILABLE.— ‘‘(c) NO COVER OVER TO POSSESSIONS.—Not- pointed by the Secretary of Health and (A) LIMITATION.—Not more than 1⁄10 of 1 withstanding any other provision of law, no Human Services, and shall include individ- percent of the funds in such Trust Fund shall amount collected under this subchapter shall uals from each of the following categories: be available for the purposes of paragraph be covered over to any possession of the (1) Physicians who are faculty members of (1). United States.’’. medical schools. (B) ALLOCATION.—Amounts under para- (b) CLERICAL AMENDMENT.—The table of (2) Officers or employees of teaching hos- graph (1) shall be paid from the accounts es- chapters for subtitle D of the Internal Reve- pitals. tablished under paragraphs (2) through (5) of nue Code of 1986 is amended by inserting (3) Officers or employees of health plans. section 2201(a) of the Social Security Act, in after the item relating to chapter 36 the fol- (4) Deans of medical schools. the same proportion as the amounts trans- lowing new item: (5) Such other individuals as the Secretary ferred to such accounts bears to the total of determines to be appropriate. amounts transferred to all 4 such accounts ‘‘CHAPTER 37. Health related assessments.’’ (d) TERMS.— for such fiscal year. (c) EFFECTIVE DATE.—The amendments (1) IN GENERAL.—Except as provided in (c) LIMITATION.—Nothing in this section made by this section shall apply with respect paragraph (2), members of the Advisory Com- shall be construed to authorize any change January 19, 1999 CONGRESSIONAL RECORD — SENATE S657 in the payment methodology for teaching Payments from the Trust Fund reimburse 105th Congress, every member of the hospitals and medical schools established by teaching hospitals for both the direct 1 and Committee on Finance sponsored legis- the amendments made by this Act. indirect 2 costs of graduate medical edu- lation to make this provision perma- cation. nent, and the full Senate twice voted SUMMARY OF THE MEDICAL EDUCATION TRUST Payments for direct costs are based on the FUND ACT OF 1999 actual costs of employing medical residents. to support it—in 1997 and again in 1998. The provision enjoys equally broad OVERVIEW Payments for indirect costs are based on the number of patients cared for in each hospital support in the business, labor, and edu- The legislation establishes a Medical Edu- and the severity of their illnesses as well as cation Trust Fund to support America’s 144 cation communities. I have received a measure of the teaching load in that hos- medical schools and 1,250 graduate medical letters of support from groups such as pital.3 For the purposes of payments to education teaching institutions. These insti- the National Association of Manufac- teaching hospitals, the allocation of Medi- tutions are in a precarious financial situa- turers, from labor and employee groups care funds is based on the number of Medi- tion as market forces reshape the health care patients in each hospital; the allocation such as the College and University Per- care delivery system. Explicit and dedicated of the tax revenue and Medicaid funds is sonnel Association, and from profes- funding for these institutions will guarantee based on the number of non-Medicare pa- sional groups such as the National So- that the United States continues to lead the tients in each hospital. ciety of Professional Engineers. world in the quality of its health care sys- tem. MEDICAL EDUCATION ADVISORY COMMISSION Why, then, is it not a permanent fea- The Medical Education Trust Fund Act of The legislation also establishes a Medical ture of the Tax Code today? Because, 1999 recognizes the need to begin moving Education Advisory Commission to conduct for reasons this Senator cannot under- away from existing medical education pay- a study and make recommendations, includ- stand, the provision has been opposed ment policies. Funding would be provided for ing the potential use of demonstration in the House. demonstration projects and alternative pay- projects, regarding the following: operations Section 127 should be permanent be- of the Medical Education Trust Fund; alter- ment methods, but permanent policy cause it is one of the most successful changes would await a report from a new native and additional sources of medical edu- cation financing; alternative methodologies education initiatives that the Federal Medical Education Advisory Commission es- Government has ever undertaken. Ap- tablished by the bill. The primary and imme- for distributing medical education pay- diate purpose of the legislation is to estab- ments; policies designed to maintain supe- proximately one million persons bene- lish as Federal policy that medical education rior research and education capacities in an fits from this provision every year. And is a public good which should be supported increasingly competitive health system; the they benefit in the most auspicious of by all sectors of the health care system. role of medical schools in graduate medical circumstances. An employer recognizes To ensure that the burden of financing education; and policies designed to expand, that the worker is capable of doing medical education is shared equitably by all eligibility for graduate medical education payments to institutions other than teach- work at higher levels and skills and sectors, the Medical Education Trust Fund says, ‘‘Will you go to school and get a will receive funding from three sources: a 1.5 ing hospitals, including children’s hospitals. percent assessment on health insurance pre- The Commission, comprised of nine indi- degree so we can put you in a higher miums (the private sector’s contribution), viduals appointed by the Secretary of Health position than you have now—and with Medicare, and Medicaid (the public sector’s and Human Services, will be required to better compensation?’’ Unlike so many contribution). The relative contribution issue an interim report no later than Janu- of our job training programs that have from each of these sources is in rough pro- ary 1, 2001, and a final report no later than depended on the hope that in the after- portion to the medical education costs at- January 1, 2003. math of the training there will be a tributable to their respective covered popu- FOOTNOTES job, here you have a situation where lations. 1 Medical residents’ salaries are the primary direct the worker already has a job and the Over the five years following enactment, cost. the Medical Education Trust Fund will pro- 2 These indirect costs include the cost of treating employer agrees that the worker vide average annual payments of about $17 more seriously ill patients and the costs of addi- should improve his or her situation in billion, roughly doubling federal funding for tional tests that may be ordered by medical resi- a manner that is beneficial to all con- dents. medical education. The assessment on health 3 The legislation will use Medicare’s measure of cerned. insurance premiums (including self-insured teaching load as an interim measure. And the program works efficiently. It health plans) contributes approximately $5 administers itself. It has no bureauc- billion per year to the Trust Fund. Federal By Mr. MOYNIHAN (for himself, racy—there is no bureau in the Depart- health programs contribute about $12 billion Mr. ROTH, Mr. BAUCUS, Mrs. ment of Education for employer-pro- per year to the Trust Fund: $8 billion in BOXER, Mr. BRYAN, Mr. CONRAD, Medicare graduate medical education pay- vided educational assistance, no titles, ments and $4 billion in federal Medicaid Mr. GRAHAM, Mr. GRASSLEY, no confirmations, no assistant sec- spending. Mr. HATCH, Mr. JEFFORDS, Mr. retaries. There is nothing except the KYL, Mr. LIEBERMAN, Ms. MI- individual plan of an employer for the ESTIMATED AVERAGE ANNUAL TRUST FUND REVENUE BY KULSKI, Mr. MURKOWSKI, Mr. benefit of its employees. SOURCE, FIRST FIVE YEARS ROBB, and Mr. SCHUMER): Since its inception in 1979, section 127 [In billions of dollars] S. 211. A bill to amend the Internal has enabled millions of workers to ad- Revenue Code of 1986 to make perma- vance their education and improve 1.5% assess- nent the exclusion for employer-pro- ment Medicare Medicaid Total their job skills without incurring addi- vided educational assistance programs, tional taxes and a reduction in take- 5 8 4 17 and for other purposes; to the Commit- home pay. As one example of the reach tee on Finance. of this provisions, IBM, a key New INTERIM PAYMENT METHODOLOGIES EMPLOYEE EDUCATIONAL ASSISTANCE ACT York employer, provides education as- Payments to medical schools Mr. MOYNIHAN. Mr. President, I rise sistance benefits worth millions of dol- Medical schools rely on a portion of the today to introduce legislation to per- clinical practice revenue generated by their lars to more than 4,000 participants a faculties to support their operations. As manently extend the tax exclusion for year. competition within the health system inten- employer-provided educational assist- Without section 127, workers will find sifies and managed care proliferates, these ance under section 127 of the Internal that the additional taxes or reduction revenues are being constrained. Payments to Revenue Code. This bill, cosponsored in take-home pay impose a significant, medical schools from the Trust Fund are de- by Senator ROTH, the distinguished even prohibitive, financial obstacle to signed to partially offset this loss of revenue. chairman of the Senate Finance Com- further education. For example, an un- Initially, these payments will be based upon mittee, ensures that employees may re- married clerical worker pursuing a col- an interim methodology developed by the ceive up to $5,250 annually in tuition lege diploma who has income of $21,000 Secretary of Health and Human Services. reimbursements or similar educational in 1999 ($10.50 per hour) and who re- Payments to teaching hospitals benefits for both undergraduate and ceived tuition reimbursement for two To cover the costs of education, teaching graduate education from their employ- semesters of night courses—perhaps hospitals have traditionally charged higher rates than other hospitals. As private payers ers on a tax-free basis. worth $4,000—wil owe additional Fed- become increasingly unwilling to pay these The provision enjoys virtually unani- eral income and payroll taxes of $906 on higher rates, the future of these important mous support in the Senate. In the this educational assistance. institutions, and the patient care, training, And the provision makes an impor- and research they provide, is placed at risk. 1Footnotes at end of summary. tant contribution to simplicity in the S658 CONGRESSIONAL RECORD — SENATE January 19, 1999 tax law. Absent section 127, a worker Indeed, recent evidence released by of marketing for Mobil Oil or General Mo- receiving educational benefits from an the Census Bureau demonstrates that tors, you could have a wide expanse of edu- employer is taxed on the value of the the earnings gap between individuals cational experiences that would be job relat- education received, unless the edu- ed. . . . but for the poor devil in private en- with a college degree and those with terprise who dropped out of school at 16 and cation is directly related to the work- only a high school education continues is working on a production job and would er’s current job and not remedial. to grow. Those who hold bachelor’s de- like to move out of that, all you can train Thus, the worker would be subject to grees on average made $40,478 last year, him for is to do the production job better. tax if the education either qualifies compared with $22,895 earned by the av- . . . [T]he lower skilled, the minorities, the him or her for a new job, or is nec- erage high school graduate. In other less educated, are also the ones cir- essary to meet the minimum edu- terms, college graduates now earn 76 cumscribed by law. cational requirements for the current percent more than their counterparts This has been confirmed in practice. A job. Workers and employers—as well as with less education, up significantly study published by the National Asso- the IRS for matters in audit—must from 57 percent in 1975. ciation of Independent Colleges and carefully review the facts of each situ- Despite efforts by the Senate, the Universities in December, 1995 found ation and judge whether the education most recent extension of section 127 ex- that the average section 127 recipient is taxable under these rules, and em- cluded graduate level education. This earned less than $33,000, and a Coopers ployers are subject to penalties if they was a mistake. Historically, one quar- & Lybrand study found that participa- fail to properly adjust wage withhold- ter of the individuals who have used tion rates decline as salary levels in- ing for employees who receive taxable section 127 went to graduate schools. crease. education. More work for tax advisors. Ask major employees about their em- I hope that Congress will recognize Permanent reinstatement of section ployee training and they will say noth- the importance of this provision, and 127 will allow workers who receive, and ing is more helpful than being able to enact it permanently. Our on-again, employers who provide, education as- send a promising young person, or mid- off-again approach to section 127 has sistance to do so without such com- dle management person, to a graduate created great practical difficulties for plexity. school to learn a new field that has de- the intended beneficiaries. Workers Section 127 has also helped to im- cannot plan sensibly for their edu- prove the quality of America’s public veloped since that person acquired his or her education. As Dr. Greenspan cational goals, not knowing the extent education system at a fraction of the to which accepting educational assist- cost of direct-aid programs. A survey stated, . . . education, especially to enhance ad- ance may reduce their take-home pay. by the National Education Association As for employers, the fits and starts of a few years ago found that almost half vanced skills, is so vital to the future growth the legislative history of section 127 of all American public schools systems of our economy. have been a serious administrative nui- provide tuition assistance to teachers By eliminating graduate level edu- sance: there have been nine extensions seeking advanced training and degrees. cation from section 127, we impose a of this provision since 1978, of which This has enabled thousands of public tax increase on many citizens who schools teachers to obtain advanced de- work and go to graduate school at the eight were retroactive. If section 127 is grees, enhancing the quality of instruc- same time. But not all of them. Only in force, then there is no need to with- tion in our schools. the ones whose education does not di- hold taxes on educational benefits pro- A well-trained and educated work rectly relate to their current jobs. For vided; if not, the job-relatedness of the force is a key to our Nation’s competi- these unlucky persons, we have erected educational assistance must be tiveness in the global economy of the a barrier to their upward mobility. ascertained, a value assigned, and 21st century. Pressures from inter- Who are these people? Perhaps an engi- withholding adjusted accordingly. Un- national competition and technological neer seeking a master’s degree in geol- certainty about the program’s continu- change require constant education and ogy to enter the field of environmental ance has magnified this burden, and retraining to maintain and strengthen science, or a bank teller seeking an discouraged employers from providing American industry’s competitive posi- MPA in accounting, or a production educational benefits. tion. Alan Greenspan, the esteemed line worker seeking an MBA in man- For example, section 127 expired for a Chairman of the Federal Reserve Sys- agement. time after 1994. During 1995, employers tem’s Board of Governors, remarked at Simple equity among taxpayers de- did not know whether to withhold Syracuse University in New York in mands that section 127 be made perma- taxes or curtail their educational as- December, 1997 that: nent. Contrast each of the above exam- sistance programs. Workers did not Our business and workers are confronting a ples with the following: The environ- know whether they would face large dynamic set of forces that will influence our mental geologist seeking a master’s in tax bills, and possible penalties and in- nations’ ability to compete worldwide in the geology, the bank accountant seeking terest, and thus faced considerable risk years ahead. Our success in preparing work- an MPA, and the management trainee in planning for their education. Con- ers and managers to harness those forces will seeking an MBA; each of these persons stituents who called my office reported be an important element in the outcome. that they were taking fewer courses— . . . America’s prospects for economic could qualify for tax-free education, growth will depend greatly on our capacity whereas their colleagues would not. or no courses—due to this uncertainty. to develop and to apply new technology. There is no justification for this dif- And when we failed to extend the pro- [A]n increasing number of workers are fac- ference in tax treatment. vision by the end of 1995, employers ing the likelihood that they will need retool- Thus, section 127 removes a tax bias had to guess as to how to report their ing during their careers. The notion that for- against lesser-skilled workers. The tax worker’s incomes on the W–2 tax state- mal degree programs at any level can be ments, and employees had to guess crafted to fully support the requirements of bias arises because lesser-skilled work- one’s lifework is being challenged. As a re- ers have narrower job descriptions, and whether to pay tax on the benefits they sult, education is increasingly becoming a a correspondingly greater difficulty received. In the Small Business Job lifelong activity; businesses are now looking proving that educational expenses di- Protection Act of 1996, we finally ex- for employees who are prepared to continue rectly relate to their current jobs. tended the provision retroactively to learning. . . . Less-skilled workers are in greater the beginning of 1995. As a result, we Section 127 has an important, per- need of remedial and basic education. had to instruct the IRS to issue guid- haps vital, role to play in this regard. And they are the ones least able to af- ance expeditiously to employers and It permits employees to adapt and re- ford the imposition of tax on their edu- workers on how to obtain refunds. train without incurring additional tax cational benefits. As noted by Senator The current provision expires with liabilities and a reduction in take- Packwood in a 1978 Finance Committee respect to courses beginning after May home pay. By removing the tax burden hearing on this provision, employer- 31, 2000. Will we subject our constitu- from workers seeking education and re- provided education is not taxable: ents, once again, to similar confusion? training, section 127 helps to maintain . . . so long as it is related to the job, but The legislation I introduce today would American workers as the most produc- the trouble is, once you get higher in a cor- restore certainty to section 127 by tive in the industrialized and develop- poration, more things seem to be related to maintaining it on a permanent basis ing world. the job. If you are a vice president in charge for all education. January 19, 1999 CONGRESSIONAL RECORD — SENATE S659 Encouraging workers to further their mit on Skills for 21st Century and urged that nomic activity credit for Puerto Rico, education and to improve their job government, labor, academic and business and for other purposes; to the Commit- skills is an important national prior- leaders all take greater responsibility in en- tee on Finance. ity. It is crucial for preserving our couraging a stronger focus on lifelong learn- S. 213. A bill to amend the Internal ing. Manufacturers have discovered the im- Revenue Code of 1986 to repeal the limi- competitive position in the global portance of education and lifelong learning economy. Permitting employees to re- first hand. For instance, raising the edu- tation of the cover over of tax on dis- ceive educational assistance on a tax- cation level of workers by just one year tilled spirits, and for other purposes; to free basis, without incurring signifi- raises manufacturing productivity by 8.5 per- the Committee on Finance. cant cuts in take-home pay, is a dem- cent and each additional year of post-high S. 214. A bill to amend the Internal onstrated, cost-effective means for school education is worth 5–15 percent in in- Revenue Code of 1986 to extend the re- achieving these objectives. This is a creased earnings to the worker. Despite the search and development tax credit to wonderful piece of unobtrusive social fact that roughly 95 percent of manufactur- research in the Commonwealth of ers provide some form of worker training and Puerto Rico and the possessions of the policy. And it simplifies our tax system nearly half spend at least 2 percent of pay- for one million workers and their em- United States; to the Committee on Fi- roll, 9 in 10 report a serious skills shortage. nance. ployers. In short, our economy will only continue to S. 215. A bill to amend title XXI of Mr. President, I ask unanimous con- grow if our workers are armed with the the Social Security Act to increase the sent that the text of the bill be printed skills they need to thrive in tomorrow’s allotments for territories under the in the RECORD, along with two letters, workplace. Permanent extension of Section 127 for both undergraduate and graduate- State Children’s Health Insurance Pro- representative of many, I have received gram; to the Committee on Finance. in support of the bill. level assistance will help do just that. Again, thank you for your support for this PUERTO RICO LEGISLATIVE PACKAGE There being no objection, the mate- important issue. The NAM looks forward to Mr. MOYNIHAN. Mr. President, I rise rials were ordered to be printed in the working with you and Chairman Roth in de- today on behalf of myself and my dis- RECORD, as follows: veloping bipartisan support for S. 127. Please tinguished colleague from New York, S. 211 feel free to contact me at (202) 637–3133 if the Mr. SCHUMER, to introduce three tax Be it enacted by the Senate and House of Rep- NAM can be of further assistance. Sincerely, measures designed to strengthen our resentatives of the United States of America in commitment to enhancing the pros- Congress assembled, SANDRA BOYD, pects for long-term economic growth in SECTION 1. SHORT TITLE. Assistant Vice President. This Act may be cited as the ‘‘Employee the Commonwealth of Puerto Rico, and Educational Assistance Act’’. NATIONAL ASSOCIATION OF INDE- a fourth piece of legislation to ensure PENDENT COLLEGES AND UNIVER- SEC. 2. EMPLOYER-PROVIDED EDUCATIONAL AS- fair funding for its Children’s Health SISTANCE PROGRAMS. SITIES, Insurance Program. Washington, DC, January 13, 1999. (a) PERMANENT EXTENSION.—Section 127 of Twice this decade, Congress has im- the Internal Revenue Code of 1986 (relating Hon. DANIEL PATRICK MOYNIHAN, posed significant tax increases on com- to exclusion for educational assistance pro- U.S. Senate, Hart Senate Office Building, panies doing business in Puerto Rico. Washington, DC. grams) is amended by striking subsection (d) Those tax increases in 1993 and 1996, DEAR SENATOR MOYNIHAN: I am writing to and by redesignating subsection (e) as sub- agreed to in the context of broader def- section (d). offer my sincere appreciation for your spon- sorship of legislation that will permanently icit reduction and minimum wage leg- (b) REPEAL OF LIMITATION ON GRADUATE extend IRC Sec. 127 for both undergraduate islation, substantially altered the eco- EDUCATION.—The last sentence of section 127(c)(1) of such Code is amended by striking and graduate courses. On behalf of over 900 nomic relationship between the United ‘‘, and such term also does not include any independent colleges and universities across States and the possessions. The legisla- payment for, or the provision of any benefits the country that make up the National Asso- tion I introduce today will address sev- with respect to, any graduate level course of ciation of Independent Colleges and Univer- eral of the economic concerns caused a kind normally taken by an individual pur- sities (NAICU), I thank you for your contin- by those tax increases and restore in- suing a program leading to a law, business, ued commitment to encouraging a well-edu- cated and properly-trained workforce centives for employment, investment, medical, or other advanced academic or pro- and business opportunities. fessional degree’’. through the permanent extension of this tax credit. Federal tax incentives for economic (c) EFFECTIVE DATES.— activity in Puerto Rico are nearly as (1) EXTENSION.—The amendments made by As you know, this important provision of subsection (a) shall apply with respect to ex- the tax code allows employees to exclude old as the income tax itself. Under the penses relating to courses beginning after from their income the first $5,250 of edu- Revenue Act of 1921, U.S. corporations the date of enactment of this Act. cational benefits paid by their employers. that met two gross income tests were (2) GRADUATE EDUCATION.—The amendment While the Taxpayer Relief Act of 1997 tempo- deemed ‘‘possessions corporations’’ ex- made by subsection (b) shall apply with re- rarily extended the benefit for undergradu- empt from tax on all income derived ate courses, graduate courses are currently spect to expenses relating to courses begin- from sources outside the United States. ning after December 31, 1998. not included in the Sec. 127 extension that is set to expire on May 31, 2000. Legislation The possessions corporation exemption that will permanently extend the credit for remained unchanged until 1976. Section NATIONAL ASSOCIATION both graduate and undergraduate courses is 936 of the Internal Revenue Code, added OF MANUFACTURERS, Washington, DC, January 19, 1999. absolutely critical. by the Tax Reform Act of 1976, main- Employees benefit from Sec. 127 by keep- Hon. DANIEL P. MOYNIHAN, tained the exemption for income de- Ranking Member, Senate Committee on Fi- ing current in rapidly advancing fields, im- rived by U.S. corporations from oper- nance, Russell Senate Office Building, proving basic skills, or, in extreme cases, ations in a possession. It also exempted Washington, DC. learning new skills. Sec. 127 also serves as an from tax the dividends remitted by a effective means for entry level employees to DEAR SENATOR MOYNIHAN: On behalf of the possessions corporation to its U.S. par- National Association of Manufacturers move from low wage jobs to higher wage jobs while remaining in the workforce. ent. However, to prevent the avoidance (NAM), representing 18 million working men of tax on investments in foreign coun- and women in 14,000 small, medium and large Sec. 127 has always received strong support businesses across America, I want to com- in both the House and Senate, and as a time- tries by possessions corporations, the mend you for your willingness to introduce tested initiative, it ought to be included in 1976 Tax Reform Act eliminated the ex- and sponsor S. 127 in the 106th Congress. As any tax vehicle that comes before the 106th emption for income derived outside the you know, Section 127 of the Internal Reve- Congress. NAICU looks forward to working possessions. nue Code enables employers to provide tax- with you and the other supporters of this In 1993, Congress imposed significant free tuition assistance for undergraduate legislation to move the bill forward. limitations on Section 936. The Omni- Again thank you for your continued efforts education through 2000. The NAM supports bus Budget Reconciliation Act of 1993 your efforts to provide not only a permanent on this important matter. Sincerely, subjected Section 936 to two alter- extension of Section 127, but the restoration native limitations (the taxpayer may of graduate-level assistance as well. DAVID L. WARREN, President. The NAM strongly believes that education choose which limitation applies). One and lifelong learning are the key to contin- By Mr. MOYNIHAN (for himself limitation is based on factors that re- ued economic growth and worker prosperity. and Mr. SCHUMER): flect the corporation’s economic activ- Last week, NAM President Jerry Jasinowski S. 212. A bill to amend the Internal ity in the possessions. The other limi- participated in Vice President Gore’s Sum- Revenue Code of 1986 to extend the eco- tation is based on a percentage of the S660 CONGRESSIONAL RECORD — SENATE January 19, 1999 credit that would be allowable under Rico and the other U.S. possessions. a consequence of the decision to phase- prior-law rules. The staff of the Joint Until recently, U.S. companies paid no out section 936 and eliminate the Tax Committee estimated that the 1993 taxes on Puerto Rico source income. As Qualified Possession Source Invest- Act changes would raise $3.75 billion a result, there were no tax con- ment Income provision in the tax code. over five years. sequences to Puerto Rico’s exclusion The proposal to transfer a portion of While Congress substantially limited from the R&D credit. With the phasing the restored cover-over for five years tax incentives for companies doing out of section 936, applying the R&D to capitalize the Trust is projected to business in Puerto Rico in 1993, the credit to research expenditures in result in a permanent endowment. Small Business Job Protection Act of Puerto Rico has become a matter of Lastly, I introduce a bill to provide 1996 effectively repealed remaining fed- fairness, and this legislation would en- sufficient funding for Puerto Rico and eral tax incentives, subject to a 10-year sure eligibility for companies operat- the Territories’ Children’s Health In- transition rule for taxpayers with ex- ing in the possessions. The Government surance Programs (CHIP). isting investments in Puerto Rico. The of Puerto Rico has made research and The Balanced Budget Act of 1997 es- Joint Tax Committee staff estimated development a centerpiece of its new tablished CHIP as a grant to states to the 1996 changes would raise $10.5 bil- economic model, and Puerto Rico’s 1998 cover uninsured low-income children. lion over ten years. Tax Incentives Act created a deduction We provided approximately $20 billion In committee report language accom- for research and development expenses in the first five years. The original al- panying the 1976 Act, Congress recog- incurred for new or improved products location formula would have provided nized that the Federal government im- or industrial processes. While the im- only 0.25 percent of the funding to poses upon the possessions various re- mediate cost of extending the R&D Puerto Rico and the Territories. quirements, such as minimum wage re- credit to Puerto Rico is minimal (in Recognizing that this allocation pro- quirements and requirements to use 1998, the Joint Tax Committee esti- vided insufficient funding for CHIP U.S. flag ships in transporting goods mated the total five year revenue loss programs in Puerto Rico and the Terri- between the United States and various at $4 million), the long term benefits tories, Congress increased their allot- possessions, that substantially increase for Puerto Rico’s diversifying economy ments by $32 million in the Omnibus the labor, transportation and other could be significant. Consolidated and Emergency Supple- costs of establishing business oper- The third bill addresses a provision of mental Appropriations Act for FY 1999. ations in Puerto Rico. In the 1990s, in the tax law a portion of which expired However, this increase was provided for light of trade agreements such as on September 30, 1998. The Puerto Fiscal Year 1999 only. NAFTA and increased economic com- Rican Federal Relations Act and the This bill would increase the allot- petition from low-wage Caribbean Revised Organic Act of the Virgin Is- ments for Puerto Rico and the Terri- countries, these concerns are particu- lands mandate that all federal collec- tories for future years such that fund- larly acute. tions on insular products be trans- ing would equal about one percent of Traditionally, Puerto Rico has been ferred (‘‘covered-over’’) to those unin- the total grant funding. Puerto Rico excluded from or underfinanced in corporated jurisdictions of our Nation. and the Territories account for about many federal programs because, it has Further, the Caribbean Basin Eco- 1.52 percent of the nation’s population. been argued, the island does not pay in- nomic Recovery Act provides that col- This would increase funding in Fiscal come taxes to the Federal government. lections on all imported rum be trans- Year 2000 to $34.2 million. I urge my For example, Puerto Rico has only ferred to the treasuries of Puerto Rico colleagues’ support for this modest but minimal Federal participation in the and the Virgin Islands. In 1984, because significant legislation. Medicaid program. In 1998, Puerto of a dispute concerning the use of the In an era of open borders, expanding Rico’s Medicaid program received ap- tax cover-over mechanism in Puerto trade, and increasingly interlinked proximately $170 million in federal Rico, the cover-over was limited to an economic ties, the United States funds, whereas it could have received amount of $10.50 per gallon tax on rum, should not punish Puerto Rico by se- approximately $500 million if it were rather than the full $13.50 per gallon lectively applying some laws while de- treated as a state. Clearly, Congress tax. The disputed practice was discon- nying the benefits of others. Economic should not adopt a double standard of tinued many years ago. In 1993, Con- conditions in Puerto Rico warrant spe- taxing Puerto Rico’s economic activity gress enacted a temporary increase in cial consideration. While the United while denying funding for federal pro- the rum cover-over, to $11.30, effective States is enjoying the benefits of an grams. for five years. That provision expired historically unprecedented period of Mr. President, the first of the bills I on September 30, 1998, and the rum economic expansion, unemployment introduce today, while not designed to cover-over dropped back to $10.50. The among Puerto Rico’s 3.5 million inhab- reinstate prior law, seeks to build on legislation would restore the cover- itants remains high at 12.5 percent. the temporary wage credit that is cur- over to the full amount of the excise The needs of Puerto Rico, and the im- rently provided in the Internal Reve- tax collected on rum ($13.50 per proof portance of this provision, were mag- nue Code. The bill removes provisions gallon), as mandated in the basic laws nified by the devastation recently that limit, in taxable years beginning regarding those jurisdictions and in the caused by Hurricane Georges. Mr. after 2001, the aggregate taxable in- Caribbean Basin Initiative. Last Sep- President, now is the time to reinforce come taken into account in determin- tember, the Congressional Budget Of- our close economic relationship with ing the amount of the credit. Employ- fice estimated such a proposal would Puerto Rico. I hope my colleagues in ers would generally be eligible for a tax cost $350 million over 5 years and $700 the Senate will join me in working to- credit equal to 60 percent of wages and million over 10 years. ward swift passage of these measures. Additionally, the proposal provides fringe benefit expenses for employees Finally, Mr. President I ask unani- that, for a five-year period, 50 cents per located in Puerto Rico. New as well as mous consent that the text of the four gallon of the cover-over to Puerto Rico existing employers would be rewarded measures be printed in full in the would be further transferred to the for providing local jobs. Instead of ex- RECORD. Puerto Rico Conservation Trust. The piring at the end of 2005, the credit There being no objection, the bills Conservation Trust, created for the would terminate three years later for were ordered to be printed in the protection of the natural resources and tax years starting after 2008. Thus, RECORD, as follows: businesses would have a 10 year period environmental beauty of Puerto Rico, S. 212 in which to take advantage of these in- was established by the Department of centives. the Interior and the Commonwealth of Be it enacted by the Senate and House of Rep- A second proposal addresses the in- Puerto Rico in 1968. The Trust was ini- resentatives of the United States of America in Congress assembled, equitable treatment of Puerto Rico tially funded through an oil import fee. SECTION 1. SHORT TITLE; AMENDMENT OF 1986 under the tax credit for increasing re- More recently, it was primarily fi- CODE. search activities (the R&D tax credit). nanced through Section 936 of the In- (a) SHORT TITLE.—This Act may be cited as The R&D credit has never applied to ternal Revenue Code. The Trust lost the ‘‘Puerto Rico Economic Activity Credit qualified research conducted in Puerto more than 80 percent of its funding as Improvement Act of 1999’’. January 19, 1999 CONGRESSIONAL RECORD — SENATE S661

(b) AMENDMENT OF 1986 CODE.—Except as Fed. Reg. 17288 et seq., formerly known as plied separately with respect to each sub- otherwise expressly provided, whenever in ‘SIC codes’).’’ stantial line of business of the corporation. this Act an amendment or repeal is ex- (c) REPEAL OF BASE PERIOD CAP.— ‘‘(ii) EXCEPTIONS FOR EXISTING CREDIT pressed in terms of an amendment to, or re- (1) IN GENERAL.—Section 30A(a)(1) (relating CLAIMANT.—This paragraph shall not apply peal of, a section or other provision, the ref- to allowance of credit) is amended by strik- to a line of business with respect to which erence shall be considered to be made to a ing the last sentence. the qualified domestic corporation is an ex- section or other provision of the Internal (2) CONFORMING AMENDMENT.—Section isting credit claimant under paragraph (9). Revenue Code of 1986. 30A(e)(1) is amended by inserting ‘‘but not ‘‘(iii) ALLOCATION.—The Secretary shall SEC. 2. MODIFICATIONS OF PUERTO RICO ECO- including subsection (j)(3)(A)(ii) thereof’’ prescribe rules necessary to carry out the NOMIC ACTIVITY CREDIT. after ‘‘thereunder’’. purposes of this subparagraph, including (d) APPLICATION OF CREDIT.—Section 30A(h) (a) CORPORATIONS ELIGIBLE TO CLAIM CRED- rules— (relating to applicability of section), as re- IT.—Section 30A(a)(2) (defining qualified do- ‘‘(I) for the allocation of items of income, mestic corporation) is amended to read as designated by subsection (b), is amended by gain, deduction, and loss for purposes of de- follows: striking ‘‘January 1, 2006’’ and inserting termining taxable income under subsection ‘‘January 1, 2009’’. (a)(1)(A), and ‘‘(2) QUALIFIED DOMESTIC CORPORATION.— (e) CONFORMING AMENDMENTS.— For purposes of paragraph (1)— ‘‘(II) for the allocation of wages, fringe (1) Section 30A(b) is amended by striking benefit expenses, and depreciation allow- ‘‘(A) IN GENERAL.—A domestic corporation ‘‘within a possession’’ each place it appears shall be treated as a qualified domestic cor- ances for purposes of applying the limita- and inserting ‘‘within Puerto Rico’’. poration for a taxable year if it is actively tions under subsection (a)(4)(A). (2) Section 30A(d) is amended by striking LIGIBLE LINE OF BUSINESS.—For pur- conducting within Puerto Rico during the ‘‘(B) E ‘‘possession’’ each place it appears. poses of this subsection, the term ‘eligible taxable year— (3) Section 30A(f) is amended to read as fol- line of business’ means a substantial line of ‘‘(i) a line of business with respect to which lows: business in any of the following trades or the domestic corporation is an existing cred- ‘‘(f) DEFINITIONS.—For purposes of this businesses: it claimant under section 936(j)(9), or section— ‘‘(i) Manufacturing. ‘‘(ii) an eligible line of business not de- ‘‘(1) QUALIFIED INCOME TAXES.—The quali- ‘‘(ii) Agriculture. scribed in clause (i). fied income taxes for any taxable year allo- ‘‘(iii) Forestry. ‘‘(B) LIMITATION TO LINES OF BUSINESS.—A cable to nonsheltered income shall be deter- ‘‘(iv) Fishing.’’ domestic corporation shall be treated as a mined in the same manner as under section (2) NEW LINES OF BUSINESS.—Section qualified domestic corporation under sub- 936(i)(3). 936(j)(9)(B) is amended to read as follows: paragraph (A) only with respect to the lines ‘‘(2) QUALIFIED WAGES.—The qualified ‘‘(B) NEW LINES OF BUSINESS.—A corpora- of business described in subparagraph (A) wages for any taxable year shall be deter- tion shall not be treated as an existing credit which it is actively conducting in Puerto mined in the same manner as under section claimant with respect to any substantial Rico during the taxable year. 936(i)(1). new line of business which is added after Oc- ‘‘(C) EXCEPTION FOR CORPORATIONS ELECT- ‘‘(3) OTHER TERMS.—Any term used in this tober 13, 1995, unless such addition is pursu- ING REDUCED CREDIT.—A domestic corpora- section which is also used in section 936 shall ant to an acquisition described in subpara- tion shall not be treated as a qualified do- have the same meaning given such term by graph (A)(ii).’’ mestic corporation if such corporation (or section 936.’’ (3) SEPARATE LINES OF BUSINESS.—Section any predecessor) had an election in effect (f) EFFECTIVE DATE.—The amendments 936(j), as amended by paragraph (1), is under section 936(a)(4)(B)(iii) for any taxable made by this section shall apply to taxable amended by adding at the end the following year beginning after December 31, 1996.’’ years beginning after December 31, 1998. new paragraph: (b) APPLICATION ON SEPARATE LINE OF BUSI- SEC. 3. COMPARABLE TREATMENT FOR OTHER ‘‘(12) SUBSTANTIAL LINE OF BUSINESS.—For NESS BASIS; ELIGIBLE LINE OF BUSINESS.— ECONOMIC ACTIVITY CREDIT. purposes of this subsection (other than para- Section 30A is amended by redesignating (a) CORPORATIONS ELIGIBLE TO CLAIM CRED- graph (9)(B) thereof), the determination of subsection (g) as subsection (h) and by in- IT.—Section 936(j)(2)(A) (relating to eco- whether a line of business is a substantial serting after subsection (f) the following new nomic activity credit) is amended to read as line of business shall be determined by ref- subsection: follows: erence to 2-digit codes under the North ‘‘(g) APPLICATION ON LINE OF BUSINESS ‘‘(A) ECONOMIC ACTIVITY CREDIT.— American Industry Classification System (62 BASIS; ELIGIBLE LINES OF BUSINESS.—For ‘‘(i) IN GENERAL.—In the case of a domestic Fed. Reg. 17288 et seq., formerly known as purposes of this section— corporation which, during the taxable year, ‘SIC codes’).’’ ‘‘(1) APPLICATION TO SEPARATE LINE OF BUSI- is actively conducting within a possession (c) REPEAL OF BASE PERIOD CAP FOR ECO- NESS.— other than Puerto Rico— NOMIC ACTIVITY CREDIT.— ‘‘(A) IN GENERAL.—In determining the ‘‘(I) a line of business with respect to (1) IN GENERAL.—Section 936(j)(3) is amend- amount of the credit under subsection (a), which the domestic corporation is an exist- ed to read as follows: this section shall be applied separately with ing credit claimant under paragraph (9), or ‘‘(3) ADDITIONAL RESTRICTED REDUCED CRED- respect to each substantial line of business ‘‘(II) an eligible line of business not de- IT.— of the qualified domestic corporation. scribed in subclause (I), ‘‘(A) IN GENERAL.—In the case of an exist- ‘‘(B) EXCEPTIONS FOR EXISTING CREDIT the credit determined under subsection ing credit claimant to which paragraph (2)(B) CLAIMANT.—This paragraph shall not apply (a)(1)(A) shall be allowed for taxable years applies, the credit determined under sub- to a substantial line of business with respect beginning after December 31, 1995, and before section (a)(1)(A) shall be allowed for any tax- to which the qualified domestic corporation January 1, 2002. able year beginning after December 31, 1998, is an existing credit claimant under section ‘‘(ii) LIMITATION TO LINES OF BUSINESS.— and before January 1, 2006, except that the 936(j)(9). Clause (i) shall only apply with respect to aggregate amount of taxable income taken ‘‘(C) ALLOCATION.—The Secretary shall pre- the lines of business described in clause (i) into account under subsection (a)(1)(A) for scribe rules necessary to carry out the pur- which the domestic corporation is actively such taxable year shall not exceed the ad- poses of this paragraph, including rules— conducting in a possession other than Puerto justed base period income of such claimant. ‘‘(i) for the allocation of items of income, Rico during the taxable year. ‘‘(B) COORDINATION WITH SUBSECTION gain, deduction, and loss for purposes of de- ‘‘(iii) EXCEPTION FOR CORPORATIONS ELECT- (a)(4)(B).—The amount of income described termining taxable income under subsection ING REDUCED CREDIT.—Clause (i) shall not in subsection (a)(1)(A) which is taken into (a), and apply to a domestic corporation if such cor- account in applying subsection (a)(4)(B) shall ‘‘(ii) for the allocation of wages, fringe poration (or any predecessor) had an election be such income as reduced under this para- benefit expenses, and depreciation allow- in effect under subsection (a)(4)(B)(iii) for graph.’’ ances for purposes of applying the limita- any taxable year beginning after December (2) CONFORMING AMENDMENTS.— tions under subsection (d). 31, 1996.’’ (A) Section 936(j)(2)(A), as amended by sub- ‘‘(2) ELIGIBLE LINE OF BUSINESS.—The term (b) APPLICATION ON SEPARATE LINE OF BUSI- section (a), is amended by striking ‘‘2002’’ ‘eligible line of business’ means a substantial NESS BASIS; ELIGIBLE LINE OF BUSINESS.— and inserting ‘‘2006’’. line of business in any of the following (1) IN GENERAL.—Section 936(j) is amended (B) Section 30A(e)(1), as amended by sec- trades or businesses: by adding at the end the following new para- tion 2(c)(2), is amended by striking ‘‘sub- ‘‘(A) Manufacturing. graph: section (j)(3)(A)(ii)’’ and inserting ‘‘the ex- ‘‘(B) Agriculture. ‘‘(11) APPLICATION ON LINE OF BUSINESS ception under subsection (j)(3)(A)’’. ‘‘(C) Forestry. BASIS; ELIGIBLE LINES OF BUSINESS.—For pur- (d) APPLICATION OF CREDIT.— ‘‘(D) Fishing. poses of this section— (1) IN GENERAL.—Section 936(j)(2)(A), as ‘‘(3) SUBSTANTIAL LINE OF BUSINESS.—For ‘‘(A) APPLICATION TO SEPARATE LINE OF amended by this section, is amended by purposes of this subsection, the determina- BUSINESS.— striking ‘‘January 1, 2006’’ and inserting tion of whether a line of business is a sub- ‘‘(i) IN GENERAL.—In determining the ‘‘January 1, 2009’’. stantial line of business shall be determined amount of the credit under subsection (2) SPECIAL RULES FOR APPLICABLE POSSES- by reference to 2-digit codes under the North (a)(1)(A) for a corporation to which para- SIONS.—Section 936(j)(8)(A) is amended to American Industry Classification System (62 graph (2)(A) applies, this section shall be ap- read as follows: S662 CONGRESSIONAL RECORD — SENATE January 19, 1999 ‘‘(A) IN GENERAL.—In the case of an appli- made to the treasury of Puerto Rico under issue involves the effect of the cor- cable possession— section 7652(e) of such Code an amount equal porate alternative minimum tax on in- ‘‘(i) this section (other than the preceding to the appropriate Conservation Trust Fund come earned abroad by United States paragraphs of this subsection) shall not transfer and interest thereon at the under- companies. Correction of this policy apply for taxable years beginning after De- payment rate established under section 6621 cember 31, 1995, and before January 1, 2006, of such Code as of the due date of such trans- flaw is of significant importance to the with respect to any substantial line of busi- fer. The Secretary of the Treasury shall affected companies, their current and ness actively conducted in such possession transfer such amount deducted and withheld, future employees, and their sharehold- by a domestic corporation which is an exist- and the interest thereon, directly to the ers. ing credit claimant with respect to such line Puerto Rico Conservation Trust Fund. The U.S. taxes the worldwide income of business, and (II) GOOD CAUSE EXCEPTION.—If the Sec- of its corporations, citizens and resi- ‘‘(ii) this section (including this sub- retary of the Interior finds, after consulta- dents. Under the U.S. Tax Code, U.S. section) shall apply— tion with the Governor of Puerto Rico, that bilateral treaties, and international ‘‘(I) with respect to any substantial line of the failure by the treasury of Puerto Rico to business not described in clause (i) for tax- make a required transfer was for good cause, norms, it is generally accepted that in- able years beginning after December 31, 1998, and notifies the Secretary of the Treasury of come with a nexus to two countries and before January 1, 2009, and the finding of such good cause before the due should not be taxed by both jurisdic- ‘‘(II) with respect to any substantial line of date of the next cover over payment follow- tions, and that the jurisdiction in business described in clause (i) for taxable ing the notification of nontransfer, then the which active business income is earned years beginning after December 31, 2006, and Secretary of the Treasury shall not deduct typically should have the primary before January 1, 2009.’’ the amount of such nontransfer from any right to tax that income. To effectuate (e) EFFECTIVE DATES.— cover over payment. these principles and to avoid double (1) IN GENERAL.—The amendments made by (C) PUERTO RICO CONSERVATION TRUST taxation, the U.S. tax laws—since the this section shall apply to taxable years be- FUND.—For purposes of this paragraph, the ginning after December 31, 1998. term ‘‘Puerto Rico Conservation Trust Revenue Act of 1918—allow U.S. tax- (2) NEW LINES OF BUSINESS.—The amend- Fund’’ means the fund established pursuant payers to claim a foreign tax credit ment made by subsection (b)(2) shall apply to to a Memorandum of Understanding between with respect to foreign income taxes taxable years beginning after December 31, the United States Department of the Interior paid on foreign source income, and 1995. and the Commonwealth of Puerto Rico, thereby reduce U.S. income taxes on dated December 24, 1968. such income. S. 213 It should be emphasized that the for- Be it enacted by the Senate and House of Rep- S. 214 eign tax credit is not a tax ‘‘loophole’’ resentatives of the United States of America in Be it enacted by the Senate and House of Rep- or ‘‘preference.’’ Rather, as noted by Congress assembled, resentatives of the United States of America in the U.S. Supreme Court in the 1932 case Congress assembled, SECTION 1. REPEAL OF LIMITATION OF COVER of Burnet versus Chicago, ‘‘the primary OVER OF TAX ON DISTILLED SPIR- SECTION 1. EXTENSION OF RESEARCH CREDIT ITS. TO RESEARCH IN PUERTO RICO AND design’’ of the foreign tax credit sys- (a) IN GENERAL.—Section 7652 (relating to THE POSSESSIONS OF THE UNITED tem is to ‘‘mitigate the evil of double limitation on cover over of tax on distilled STATES. taxation.’’ spirits) is amended by striking subsection (f) (a) IN GENERAL.—Section 41(d)(4)(F) of the However, in enacting the Tax Reform and by redesignating subsection (g) as sub- Internal Revenue Code of 1986 (relating to Act of 1986, Congress concluded that section (f). foreign research) is amended by inserting ‘‘, this salutary purpose was outweighed the Commonwealth of Puerto Rico, or any (b) CONFORMING AMENDMENTS.—Section by another. At that time, Congress was 7652(f) of such Code (as so redesignated) is possession of the United States’’ after amended by striking ‘‘subsection (f) of this ‘‘United States’’. concerned with a serious problem: re- section’’ in paragraph (1)(B) and inserting (b) EFFECTIVE DATE.—The amendment peated instances of large corporations ‘‘section 5001(a)(1)’’. made by this section shall apply to taxable with substantial economic profits (re- (c) EFFECTIVE DATE.— years beginning after December 31, 1998. ported to shareholders in their annual (1) IN GENERAL.—The amendments made by reports) paying little or no Federal in- this section shall apply to articles contain- S. 215 come taxes. In response, Congress re- ing distilled spirits that are tax-determined Be it enacted by the Senate and House of Rep- wrote the corporate alternative mini- after September 30, 1999. resentatives of the United States of America in mum tax. (2) SPECIAL RULE.— Congress assembled, Congress had specific purposes in (A) IN GENERAL.—For the 5-year period be- SECTION 1. INCREASED ALLOTMENTS FOR TER- mind in rewriting the minimum tax. ginning after September 30, 1999, the treas- RITORIES UNDER THE STATE CHIL- ury of Puerto Rico shall make a Conserva- DREN’S HEALTH INSURANCE PRO- First, as noted by the Joint Tax Com- tion Trust Fund transfer within 30 days from GRAM. mittee in its General Explanation of the date of each cover over payment made Section 2104(c)(4)(B) of the Social Security the Tax Reform Act of 1986: during such period to such treasury under Act (42 U.S.C. 1397dd(c)(4)(B)), as added by . . . Congress decided that it was inher- section 7652(e) of the Internal Revenue Code the Omnibus Consolidated and Emergency ently unfair for high-income taxpayers to of 1986. Supplemental Appropriations Act, 1999 (Pub- pay little or no tax due to their ability to (B) CONSERVATION TRUST FUND TRANSFER.— lic Law 105–277), is amended by inserting ‘‘, utilize tax preferences. $34,200,000 for each of fiscal years 2000 and (i) IN GENERAL.—For purposes of this para- An obvious and incontrovertible sen- graph, the term ‘‘Conservation Trust Fund 2001, $25,200,000 for each of fiscal years 2002 transfer’’ means a transfer to the Puerto through 2004, $32,400,000 for each of fiscal timent. Yet, as noted above, foreign Rico Conservation Trust Fund of an amount years 2005 and 2006, and $40,000,000 for fiscal tax credits are not tax preferences or equal to 50 cents per proof gallon of the taxes year 2007’’ before the period. loopholes. imposed under section 5001 or section 7652 of Congress was also concerned with ap- such Code on distilled spirits that are cov- By Mr. MOYNIHAN (for himself pearances. The Joint Tax Committee ered over to the treasury of Puerto Rico and Mr. JEFFORDS): Explanation continued: under section 7652(e) of such Code. S. 216. A bill to amend the Internal .. . Congress concluded that there must be (ii) TREATMENT OF TRANSFER.—Each Con- Revenue Code of 1986 to repeal the limi- a reasonable certainty that, whenever a com- servation Trust Fund transfer shall be treat- tation on the use of foreign tax credits pany publicly reports significant earnings, ed as principal for an endowment, the in- that company will pay some tax for the year. come from which to be available for use by under the alternative minimum tax; to the Puerto Rico Conservation Trust Fund for the Committee on Finance. No argument here. And Congress en- the purposes for which the Trust Fund was LEGISLATION TO REPEAL THE LIMITATION ON sured that companies reporting profits established. FOREIGN TAX CREDITS UNDER THE CORPORATE would in fact pay tax by, among other (ii) RESULT OF NONTRANSFER.— ALTERNATIVE MINIMUM TAX changes, requiring corporations to in- (I) IN GENERAL.—Upon notification by the Mr. MOYNIHAN. Mr. President, I rise crease their ‘‘alternative minimum Secretary of the Interior that a Conservation today to introduce legislation on be- taxable income’’ by a percentage of the Trust Fund transfer has not been made by half of myself and my Finance Com- income reported on financial state- the treasury of Puerto Rico during the pe- riod described in subparagraph (A), the Sec- mittee colleague, Senator JEFFORDS, to ments, and requiring the use of a slow- retary of the Treasury shall, except as pro- repeal a limitation in the Tax Code er depreciation schedule rather than vided in subclause (II), deduct and withhold that results in the double taxation of accelerated depreciation for purposes from the next cover over payment to be certain foreign source income. The of cost recovery. January 19, 1999 CONGRESSIONAL RECORD — SENATE S663 But what about foreign tax credits? SECTION 1. REPEAL OF LIMITATION ON FOREIGN eign tax credit is not a ‘‘preference’’ The Joint Tax Committee Explanation TAX CREDIT UNDER ALTERNATIVE that serves as an incentive for a par- MINIMUM TAX. stated: (a) IN GENERAL.—Section 59(a) of the Inter- ticular activity or behavior, rather, it . . . While Congress viewed allowance of nal Revenue Code of 1986 (relating to alter- simply reflects the fundamental prin- the foreign tax credit . . . as generally ap- native minimum tax foreign tax credit) is ciple that income should not be subject propriate for minimum tax purposes, it was amended by striking paragraph (2) and by re- to multiple taxation. The 90 percent considered fair to mandate at least a nomi- designating paragraphs (3) and (4) as para- limitation was enacted as part of the nal tax contribution from all U.S. taxpayers graphs (2) and (3), respectively. 1986 tax bill solely as a method of rais- with substantial economic income. (b) CONFORMING AMENDMENTS.—Section To state it less elegantly, Congress 53(d)(1)(B)(i)(II) of such Code is amended by ing revenue. The bill that Senator believed that limited double taxation striking ‘‘and if section 59(a)(2) did not MOYNIHAN and I are introducing today of a corporation’s foreign source in- apply’’. will eliminate the AMT’s 90 percent come was a lesser evil than allowing a (c) EFFECTIVE DATE.—The amendments limitation on foreign tax credits. made by this section shall apply to taxable Eliminating this limitation will mean corporation to fully use its foreign tax years beginning after December 31, 1998. credits. The 1986 tax act provided that that taxpayers subject to the AMT will Mr. JEFFORDS. Mr. President, foreign tax credits could be used to off- get the same relief from double tax- today, I am joining with my colleague set up to 90 percent of a corporation’s ation allowed to taxpayers subject to minimum tax liability. Thus, affected from New York, Senator MOYNIHAN, to the regular tax. taxpayers pay at least 10 percent of introduce a bill that will eliminate an their alternative minimum tax, no aspect of our internal revenue laws By Mr. MOYNIHAN (for himself, matter that the tax relates to foreign that is fundamentally unfair to tax- Mr. INOUYE, and Mr. source income earned in a high-tax for- payers with income from foreign WELLSTONE): eign jurisdiction and that the taxpayer sources. S. 217. A bill to amend the Internal has paid tax on that income. Under our system of taxation, U.S. Revenue Code of 1986 to provide for the Although Congress believed the 90 citizens and domestic corporations treatment of charitable transfers of percent restriction to have been fair earning income from sources outside collections of personal papers with a policy in 1986, the restriction can no the United States are subject to U.S. separate right to control access; to the longer be justified. tax on that foreign-source income. In Committee on Finance. First, we now have a decade of expe- all likelihood, that income will also be LEGISLATION TO ENCOURAGE DONATIONS OF rience over which to judge the effect of subject to tax by the country where it PERSONAL PAPERS TO HISTORICAL AND EDU- the restriction. I am aware of at least was earned. Thus, the same income CATIONAL ORGANIZATIONS one key employer in New York that could be taxed twice, by two different Mr. MOYNIHAN. Mr. President, alone has paid significant amounts of countries. To guard against the double today I am introducing legislation on minimum tax due to this provision, taxation of this income, the tax code behalf of myself and Senators INOUYE some of which was incurred in years allows taxpayers to offset their U.S. and WELLSTONE to correct a little- during which the company reported tax on foreign-source income with the known estate and gift tax provision losses on a worldwide basis. foreign taxes paid on that income. This that may inadvertently penalize per- Second, since the 1986 Act, there have is accomplished by means of a foreign sons who donate their personal papers been a number of significant modifica- tax credit; that is, the foreign tax paid and related items to a charitable orga- tions to the minimum tax. For exam- on foreign source income is credited nization for the historical record. ple, the Taxpayer Relief Act of 1997 al- against the U.S. tax that would other- The issue arises in connection with lows large corporate taxpayers to use wise be payable on that income. The the donation of personal papers and re- accelerated depreciation under the details of the foreign tax credit rules lated items to a university, library, minimum tax, and it repealed the min- are extraordinarily complex. (Indeed, historical society, or other charitable imum tax in its entirety for corpora- virtually all of the Internal Revenue organizations. In general, such a trans- tions with gross receipts of $5 million Code’s provisions governing inter- fer has no estate or gift tax con- or less. In addition, the Energy Policy national taxation are complex.) The sequences. While the value of any such Act of 1992 allowed taxpayers to claim basic principle underlying the foreign transfer may be subject to taxation as tax benefits under the minimum tax re- tax credit rules, however, is simple: to a theoretical matter, as a practical lating to oil & gas intangible drilling provide relief from multiple taxation of matter the gift will not be taxed be- costs. Considering the post-1986 relax- the same income. cause a corresponding charitable de- ations of the minimum tax, little pur- Many U.S. taxpayers have to perform duction would be available. This is as pose remains in the 90 percent limita- two tax computations. First, they com- it should be: the donor receives neither tion. pute their ‘‘regular tax.’’ Then, they a tax benefit nor a tax burden, and the Finally, since 1986, many of our larg- compute their ‘‘alternative minimum tax law is not a factor in the decision est businesses have seen tremendous tax’’ (AMT). As a rule, taxpayers pay to make such a donation. expansion in their exports and foreign the larger of these two computations, Recently, however, estate planning sales, thus substantially increasing the the ‘‘regular tax’’ or the AMT. The lawyers have become concerned about amount of foreign source income. At AMT was enacted to ensure that tax- situations in which such a gift might the same time, these companies must payers qualifying for various tax ‘‘pref- give rise to adverse tax consequences. compete with foreign companies that erences’’ allowed by the Internal Reve- The situation occurs where the donor do not have to bear double taxation. As nue Code must pay a minimum amount retains (or transfers to his or her sur- my friend Senator Alfonse D’Amato viving spouse or children) various noted when introducing similar legisla- of tax. While foreign tax credits guard rights in the papers donated, such as a tion last year: against double taxation in the ‘‘regular tax’’ computation, the principle of pro- right to limit or control access. The re- The result is double (and even triple) tax- ation of income that is used to support U.S. viding relief from double taxation falls strictions might be in place for many jobs, R&D and other activities. by the wayside in the AMT computa- understandable reasons, such as to pro- The restriction can no longer be jus- tion. Under AMT rules, the allowable tect the privacy of colleagues, cor- tified. foreign tax credit is unlimited to 90 respondents, staffs, family and friends. Mr. President, I ask unanimous con- percent of a taxpayer’s alternative Depending on how the retained rights sent that the text of the bill be in- minimum tax liability. Because of this are described in a deed of gift or will, cluded in the RECORD. limitation, income subject to foreign and how such rights are treated under There being no objection, the mate- tax is also subject to U.S. tax. This state law, the retention of various rials were ordered to be printed in the rule operates to ensure double tax- rights may cause the gift to fail to RECORD, as follows: ation, and the result is double (and qualify for a charitable deduction S. 216 even triple) taxation of income. under the estate and gift tax. Be it enacted by the Senate and House of Rep- There is no sound policy reason for The problem arises under a series of resentatives of the United States of America in denying relief from double taxation to rules enacted in the Tax Reform Act of Congress assembled, taxpayers subject to the AMT. The for- 1969 that were designed to prevent S664 CONGRESSIONAL RECORD — SENATE January 19, 1999 abuses in the transfer tax system. In contrast, Justice Thurgood Mar- SECTION 1. TAX TREATMENT OF CHARITABLE These rules were written, in part, to TRANSFERS OF COLLECTIONS OF shall donated his papers to ‘‘be made PERSONAL PAPERS WITH SEPARATE address situations involving taxpayers available to the public at the discre- RIGHT TO CONTROL ACCESS. who claimed a charitable contribution tion of the library,’’ with the only re- (a) IN GENERAL.—Chapter 14 of the Internal deduction significantly in excess of the striction being that the use of the do- Revenue Code of 1986 is amended by adding value of property that the charity was nated materials ‘‘be limited to private at the end the following: expected to receive. This result was ac- study on the premises of the library by ‘‘SEC. 2705. TREATMENT OF CHARITABLE TRANS- complished by making a charitable gift FERS OF COLLECTIONS OF PER- researchers or scholars engaged in seri- SONAL PAPERS WITH SEPARATE in the form of an income or remainder ous research.’’ This was interpreted to RIGHT TO CONTROL ACCESS. interest in a trust, claiming an inflated allow journalists to access the papers. ‘‘(a) GENERAL RULE.—For purposes of this charitable deduction through favorable The publication of certain information subtitle, if— valuation methods, and adopting an in- contained in the materials shortly ‘‘(1) an individual transfers an interest in vestment policy for the trust that sig- after Justice Marshall’s death was qualified property to a person, or for a use described in section 2055(a) or section 2522 (a) nificantly favored the noncharitable criticized. Indeed, Chief Justice Wil- interest to the detriment of the chari- or (b), and liam Rehnquist warned that Supreme ‘‘(2) the individual retains or transfers to table interest. In response, Congress es- Court Justices might no longer donate another person the right to control access to tablished certain requirements to en- their papers to the Library of Congress. such property for a period not to exceed 25 sure that the charity would actually years after the death of the individual, receive the portion of the property for Certainly, retained rights can have value, and could be subjected to com- sections 2036, 2038, 2055(e)(2), and 2522(c)(2) which a deduction was allowed, and to shall not apply solely by reason of the indi- deny a charitable deduction in cases mercial exploitation. One can imagine vidual retaining or transferring such right. where a ‘‘split-interest’’ gift was made a publishing house would want access ‘‘(b) SPECIAL RULES RELATING TO TRANSFER that did not meet the specified require- to the papers of prominent Members, OF RIGHT TO CONTROL ACCESS.—If any indi- ments. Congressmen, or others, for use in biog- vidual transfers the right to control access These rules were not intended to raphies or on books related to the described in subsection (a) to another person events that they helped shape. for less than an adequate and full consider- apply to the donation of historically ation in money or money’s worth— important papers. Unlike the abusive However, any opportunity to retain ‘‘(1) no tax shall be imposed under this sub- situations of the past where charities and bequeath commercially exploitable title by reason of the transfer, and were unlikely to receive the benefit of rights in historical papers free of es- ‘‘(2) if the transfer involves the right being the purported gifts, in this situation tate taxes is of little importance rel- acquired, or passed, from a decedent, section the charity takes physical possession ative to the need to preserve the docu- 1014 shall not apply and the basis of the right in the hands of the transferee shall be deter- of the collection of papers. This is not ments for scholarly research. Consider a tax scheme designed to exploit weak mined under rules similar to the rules under decision memoranda from key aides, section 1015. rules. correspondence, notes of strategy ses- ‘‘(c) QUALIFIED PROPERTY.—For purposes of I stated that there ‘‘may’’ be a prob- sions, recordings of telephone con- this section, the term ‘qualified property’ lem with the estate and gift tax law be- versations such as those made by means a collection substantially all of the cause it is not clear whether the split- President Lyndon Johnson and only items of which are in the form of letters, interest rule would disallow a chari- now being aired—will these documents memoranda, or similar property described in section 1221(3).’’ table deduction in situations where do- be destroyed if the choice were to open (b) CONFORMING AMENDMENTS.— nors have retained various rights to the items upon death or to pay an es- control and limit access to their pa- (1) The heading for chapter 14 of such Code tate tax on them? Consider Chief Jus- is amended to read as follows: pers. When do such limited rights reach tice Rehnquist’s chilling warning. the point of being recognized as a type ‘‘CHAPTER 14—SPECIAL VALUATION RULES; RULES AFFECTING SUBTITLE’’. of ownership interest under state law? Yet, in most if not all cases, any re- I suspect that many prominent people tained rights can be expected to have (2) The item relating to chapter 14 in the table of chapters of subtitle B of such Code have donated their papers in the past little realizable value, and opportuni- ties for commercial exploitation would is amended by striking ‘‘rules.’’ and insert- thirty years with similar restrictions, ing ‘‘rules; rules affecting subtitle.’’ in reliance on documents prepared by appear to be quite limited in scope. (3) The table of sections of chapter 14 of knowledgeable legal advisors and cura- To this Senator, the right thing to do such Code is amended by adding at the end tors, and never imagined that there is clear. I am introducing legislation to the following new item: could be adverse tax consequences. clarify the tax law. In brief, this legis- ‘‘Sec. 2705. Treatment of charitable transfers One way to get around this problem lation provides that a person may re- of collections of personal papers would be to avoid restrictions on the tain and bequeath limited qualified with separate right to control use of the papers. But that may not be rights to a collection of papers and re- access.’’ practical, advisable, or desirable. lated items. I.e., a collection substan- (c) EFFECTIVE DATE.—The amendments made by this section apply to any transfer We can look to those who served tially all the items of which are in the across the street, in the Supreme Court made before, on, or after the date of enact- form of letters, memoranda, notes, and ment of this Act. of the United States, for examples of similar materials. Qualified rights the types of restrictions that have been would include the right of access to the U.S. SENATE, imposed on donations of important pa- materials, and the right to designate, OFFICE OF SENATE LEGAL COUNSEL, pers of public figures. Chief Justice limit, and control access to the mate- Washington, DC, June 25, 1997. Earl Warren, who donated his papers to rials, for a period of time not to exceed Hon. DANIEL PATRICK MOYNIHAN, the Library of Congress, restricted ac- U.S. Senate, 25 years after the death of the person cess to those papers for 10 years after Washington, DC. who created (or collected) the mate- his death. Justice Hugo Black, who DEAR SENATOR MOYNIHAN: rials. also donated his papers to the Library I am writing to bring to your attention a Mr. President, I ask unanimous con- recent interpretation of federal gift and es- of Congress, restricted access during tate tax law that threatens to interrupt the the lifetime of his heirs, and required sent that the text of the bill be in- flow of historically significant papers of our that permission be obtained from the cluded in the RECORD, along with a let- Nation’s academic and historical research executors of his estate to use the col- ter from our Senate Legal Counsel. institutions from public officials and public lection, to publish any writings in the There being no objection, the mate- figures, including Members of Congress. Over collection, or to publish any writings the past decades, public officials have regu- rials were ordered to be printed in the larly donated their personal papers to edu- about them. Justice Potter Stewart do- RECORD, as follows: nated his papers to the Library of Con- cational institutions or historical societies, S. 217 often upon their retirement, or bequeathed gress with the restriction that all the papers at time of death. Senators and Court materials be closed pending re- Be it enacted by the Senate and House of Rep- other public officials typically restrict ac- tirement of all justices who served on resentatives of the United States of America in cess to portions of their papers for a period the Supreme Court with him. Congress assembled, of years after donation or bequest, in order January 19, 1999 CONGRESSIONAL RECORD — SENATE S665 to protect the privacy interests of their cor- By Mr. MOYNIHAN (for himself, higher grade)—fabrics that are pro- respondents, constituents, staffs, and others. Mr. SCHUMER, and Mr. DURBIN): duced in only very limited quantities These donations provide the donors with no S. 218. A bill to amend the Har- in the United States. And it would re- income tax benefit, as government papers do monized Tariff Schedule of the United duce the duty for slightly lower grade not generate a personal income tax deduc- tion under the Internal Revenue Code. States to provide for equitable duty but still very fine wool fabric (known treatment for certain wool used in as Super 70s and Super 80s) to 19.8 per- The shared understanding up until now has making suits; to the Committee on Fi- been that such donations also have no gift or cent—equivalent to the duty that ap- estate tax consequence to the donor, as long nance. plies to most finished wool suits. The as the donation is made to a recognized char- TEMPORARILY REDUCING THE TARIFFS ON bill also provides that, in the event the itable organization. However, under a recent CERTAIN WOOL FABRIC President proclaims a duty reduction interpretation of provisions of the gift and Mr. MOYNIHAN. Mr. President, I rise on wool suits, corresponding changes estate tax law that render gifts of partial today to introduce a bill to correct an would be made to the tariffs applicable property interests ineligible for the chari- anomaly in our tariff schedule that to ‘‘Super 70s’’ and ‘‘Super 80s’’ grade table deduction, the retained right to control harms American companies like Hick- wool fabric. access to papers after they are donated or be- queathed could disqualify these charitable ey-Freeman and other producers of fine I introduced a similar measure last gifts from the charitable gift and estate tax wool suits. I refer of course to the tar- year. I do so again because of the obvi- deductions. This interpretation would render iff on fine wool fabric. Hickey-Freeman ous inequity of this tariff inversion, charitable gifts of personal papers with a re- has produced fine tailored suits in which so clearly puts U.S. producers tained right to control access subject to sub- Rochester, New York since 1899. How- and workers at a competitive disadvan- stantial and undeserved gift and estate tax- ever, the U.S. tariff schedule currently tage. This bill represents a small step ation. makes it difficult for Hickey-Freeman toward modifying a tariff schedule that The possibility that these gift and estate to continue producing such suits in the favors foreign producers of wools suits tax provisions could be interpreted to apply United States. at the expense of U.S. suit makers. We to gifts and bequests of historical papers Companies like Hickey-Freeman that should do so permanently, and perhaps, where rights of public access remain discre- must import the very high quality in time, will do so. In the meantime, tionary for a period of time has deterred a number of Senators in recent months from wool fabric used to make men’s and we ought to make this modest start. completing their plans to donate their Sen- boys’ suits pay a tariff of 30.6 percent. I ask unanimous consent that the ate papers to charitable institutions. Our of- They compete with companies that im- text of the bill be inserted in the fice has been in contact with a number of port finished wool suits from a number RECORD. Senators whose plans to donate their Senate of countries. If these imported suits are There being no objection, the bill was papers have been interrupted by this prob- from Canada or Mexico, the importers ordered to be printed in the RECORD, as lem. It is unlikely that public officials will pay no tariff whatever. From other follows: be willing to make charitable donations of countries, the importers pay a com- their papers until this issue can be resolved S. 218 pound duty of 19.2 percent plus 26.4 so as to accommodate the important inter- Be it enacted by the Senate and House of Rep- ests in both scholarly preservation and pri- cents per kilogram, or about 19.8 per- resentatives of the United States of America in vacy. cent ad valorem. Clearly, domestic Congress assembled, Consideration of a legislative amendment manufacturers of wool suits are placed SECTION 1. DUTY TREATMENT OF CERTAIN FAB- to the charitable gift and estate tax deduc- at a significant price disadvantage. In- RICS. tion provisions to clarify that charitable deed, the tariff structure provides an (a) IN GENERAL.—Subchapter II of chapter gifts and bequests of public figures’ papers incentive to import finished suits from 99 of the Harmonized Tariff Schedule of the are intended to be free from taxation would abroad, rather than manufacture them United States is amended— serve the public interest in ensuring that the in the United States. (1) by adding at the end of the U.S. notes the following new note: personal records of Senators and other offi- The bill Senators SCHUMER, DURBIN cials and public figures are preserved in the and I are introducing today would cor- ‘‘13. For purposes of headings 9902.51.11 and public domain so that they may one day be- 9902.51.12, the term ‘suit’ has the same mean- come available to scholars and researchers rect this problem, at least temporarily. ing such term has for purposes of headings who document our Nation’s history. It suspends through December 31, 2004 6203 and 6204.’’; and Sincerely, the duty on the finest wool fabrics (2) by inserting in numerical sequence the MORGAN J. FRANKEL. (known in the trade as Super 90s or following new headings:

‘‘ 9902.51.11 Fabrics, of carded or combed wool, all the foregoing certified by the im- porter as ‘Super 70’s’ or ‘Super 80’s’ intended for use in making suits, suit-type jackets or trousers (provided for in subheadings 5111.11.70, 5111.19.60, 5112.11.20, or 5112.19.90) ...... 19.8% No change No change On or be- fore 12/31/ 2004 9902.51.12 Fabrics, of carded or combed wool, all the foregoing certified by the im- porter as ‘Super 90’s’ or higher grade intended for use in making suits, suit-type jackets or trousers (provided for in subheadings 5111.11.70, 5111.19.60, 5112.11.20, or 5112.19.90) ...... Free Free (CA, No change On or be- ’’. IL, MX) fore 12/31/ 2004 (b) STAGED RATE REDUCTION.—Any staged INTRODUCTION OF THE NORTHERN BORDER Committee in September 1998, we reduction of a rate of duty set forth in head- TRADE FACILITATION ACT learned that the current number of au- ing 6203.31.00 of the Harmonized Tariff Sched- Mr. MOYNIHAN. Mr. President, I rise thorized Customs inspectors working ule of the United States that is proclaimed today to introduce the Northern Bor- on the northern border remains essen- by the President on or after the date of en- actment of this Act shall also apply to the der Trade Facilitation Act, a bill that tially the same as it was in 1980, de- corresponding rate of duty set forth in head- addresses the urgent need for increased spite the fact that the number of com- ing 9902.51.11 of such Schedule (as added by Customs inspectors and technology mercial entries they must process has subsection (a)). along the U.S.-Canadian border. increased sixfold since then, from 1 (c) EFFECTIVE DATE.—The amendments The U.S.-Canadian border is the long- million to 6 million per year. The in- made by subsection (a) apply with respect to est undefended border in the world. creased workload reflects of course the goods entered, or withdrawn from warehouse Canada is also our largest trading part- tremendous growth in U.S.-Canada for consumption, on or after the 15th day after the date of enactment of this Act. ner, with two-way trade surpassing $1 trade: two-way trade in 1988, the year billion a day. Yet, the resources that before the U.S.-Canada Free Trade By Mr. MOYNIHAN: we have provided to the Customs Serv- Agreement entered into force, was $194 S. 219. A bill to authorize appropria- ice to process traffic and trade across billion. By 1997, the volume had dou- tions for the United States Customs this border are woefully deficient. In a bled—to $387 billion. There has also Service; to the Committee on Finance. hearing before the Senate Finance been an enormous expansion in both S666 CONGRESSIONAL RECORD — SENATE January 19, 1999 commercial and passenger traffic ‘‘Shared Border Accord’’) to promote com- TITLE I—AUTHORIZATION OF APPROPRIA- across this border. mon objectives along the border, including— TIONS FOR THE UNITED STATES CUS- The resources available to the Cus- (A) facilitating the movement of commer- TOMS SERVICE FOR ENHANCED INSPEC- toms Service over the last decade have cial goods and people between both coun- TION AND TRADE FACILITATION ALONG tries; not kept pace with this enormous THE UNITED STATES-CANADIAN BOR- (B) reducing the costs of border manage- DER growth in workload. As a result, in- ment; and SEC. 101. AUTHORIZATION OF ADDITIONAL AP- creased congestion and delays are evi- (C) enhancing protections against drugs, PROPRIATIONS. dent at crossings all along the U.S.-Ca- smuggling, and the illegal and irregular In order to reduce commercial delays and nadian border. movement of people. congestion, open all primary lanes during This bill aims to correct these prob- (4) The Shared Border Accord has already peak hours at ports on the northern border, lems by authorizing the additional resulted in increased harmonization, shared and enhance the investigative resources of manpower and technology necessary to training, and joint facilities between United the Customs Service, there are authorized to States and Canadian customs agencies. be appropriated for salaries, expenses, and handle the increase in trade and traffic (5) Increased trade has resulted in a signifi- equipment for the United States Customs between the United States and Canada. cant increase in merchandise entries and Service for purposes of carrying out this In particular, this bill authorizes 375 cross-border traffic between the United title— additional ‘‘primary lane’’ inspectors States and Canada. For example— (1) $75,896,800 for fiscal year 2000; and and 125 new cargo inspectors for the (A) formal entries of merchandise on the (2) $43,931,790 for fiscal year 2001. northern border, as well as 40 special Northern border have increased sixfold from SEC. 102. PEAK HOURS AND INVESTIGATIVE RE- agents and 10 intelligence agents. The 1,000,000 in 1980 to 6,000,000 in 1997; SOURCE ENHANCEMENT FOR THE (B) the number of individuals crossing the UNITED STATES-CANADA BORDER. bill also authorizes $29.240 million for Northern border has more than doubled from Of the amounts authorized to be appro- equipment and technology for the 54,000,000 in 1989 to 112,000,000 in 1997; and priated under section 101, $49,314,800 in fiscal northern border. (C) approximately 40,000,000 privately- year 2000 and $41,273,590 in fiscal year 2001 The bill will also accord Customs the owned vehicles cross the Northern land bor- shall be for— statutory authorization to continue der annually. (1) a net increase of 375 inspectors for the providing so-called ‘‘preclearance serv- (6) The staffing and technology acquisi- United States-Canadian border, in order to ices,’’ whereby Customs inspects pas- tions of the Customs Service have not kept open all primary lanes during peak hours pace with the increased trade and traffic and enhance investigative resources; sengers and baggage prior to their de- along the Northern border. For example— (2) a net increase of 125 inspectors to be parture from a foreign country rather (A) the current number of authorized distributed at large cargo facilities on the than upon arrival in the United States. United States Customs inspectors along the United States-Canadian border as needed to This program began in 1952 and has United States-Canadian border is essentially process and screen cargo (including rail helped facilitate travel and decrease the same as the number employed in 1980; cargo) and reduce commercial waiting times; congestion at JFK international Air- (B) United States Customs understaffing is and port and other ports of entry. Customs the primary cause of congestion at border (3) a net increase of 40 special agents, and has indicated that without this new crossings; 10 intelligence analysts to facilitate the ac- (C) Customs Service acquisitions of new tivities of the additional inspectors author- statutory authority, it will be unable technology for border management have ized by paragraphs (1) and (2). to continue providing these services. been principally deployed on the Southern SEC. 103. CARGO INSPECTION EQUIPMENT FOR Finally, this legislation gives Cus- border despite the enormous growth in trade THE UNITED STATES-CANADA BOR- toms the authority to use $50 million and traffic across the United States-Cana- DER. of the total amounts collected from the dian border; and (a) FISCAL YEAR 2000.—Of the amounts au- merchandise processing fee to modern- (D) outmoded technologies and inadequate thorized to be appropriated in fiscal year 2000 under section 101, $26,582,000 shall be avail- ize its automated commercial systems equipment have increased congestion along the Northern border. able until expended for acquisition and other used to track and process imports and (7) Since 1952, the Customs Service has per- expenses associated with implementation exports. Customs’ efforts to modernize formed preclearance activities in Canada, in- and deployment of cargo inspection equip- these systems are several years behind specting passengers and baggage prior to ment along the United States-Canadian bor- schedule and underfunded. The funds their departure from Canada rather than der as follows: authorized by this bill constitute an es- upon arrival in the United States. Such (1) $3,000,000 for 4 Vehicle and Container In- sential step in providing Customs with preclearance activities have facilitated the spection Systems (VACIS). the necessary resources to continue its movement of people and merchandise across (2) $8,800,000 for 4 mobile truck x-rays with the United States-Canadian border. transmission and backscatter imaging. modernization efforts. (3) $3,600,000 for 4 1–MeV pallet x-rays. I ask unanimous consent that the (8) The Customs Service has stated that it is eliminating the preclearance positions be- (4) $250,000 for 50 portable contraband de- text of the bill be inserted in the cause it believes that it no longer has the tectors (busters) to be distributed among RECORD. statutory authority to fund the positions. ports where the current allocations are inad- There being no objection, the bill was (9) Loss of these positions would increase equate. ordered to be printed in the RECORD, as congestion and delays at United States ports (5) $300,000 for 25 contraband detection kits follows: as the Customs Service would require inspec- to be distributed among ports based on traf- fic volume. S. 219 tions to be performed in the United States, rather than abroad. (6) $240,000 for 10 portable Treasury En- Be it enacted by the Senate and House of Rep- (b) PURPOSE.—The purpose of this Act is to forcement Communications Systems (TECS) resentatives of the United States of America in facilitate commerce and the movement of terminals to be moved among ports as need- Congress assembled, people and traffic across the United States- ed. SECTION 1. SHORT TITLE. Canadian border, while maintaining enforce- (7) $400,000 for 10 narcotics vapor and par- This Act may be cited as the ‘‘Northern ment, by— ticle detectors to be distributed to each bor- Border Trade Facilitation Act’’. (1) authorizing the funds necessary to open der crossing based on traffic volume. SEC. 2. FINDINGS AND PURPOSE. all of the Customs Service’s primary inspec- (8) $600,000 for 30 fiber optic scopes. (a) FINDINGS.—Congress makes the follow- tion lanes along the United States-Canadian (9) $250,000 for 50 portable contraband de- ing findings: border during peak hours; tectors (busters) to be distributed among (1) The United States and Canada share the (2) authorizing the funds necessary to sup- ports where the current allocations are inad- longest undefended border in the world. ply the Customs Service with the appro- equate; (2) The United States and Canada enjoy the priate advanced technology to conduct in- (10) $3,000,000 for 10 x-ray vans with particle world’s largest bilateral trading relation- spections along the United States-Canadian detectors. ship, and that relationship is continuing to border and to participate fully in the Shared (11) $40,000 for 8 AM loop radio systems. expand. Two-way trade between the United Border Accord; (12) $400,000 for 100 vehicle counters. States and Canada has more than doubled (3) authorizing the Customs Service to pay (13) $1,200,000 for 12 examination tool since the United States-Canada Free Trade for preclearance positions in Canada out of trucks. Agreement was implemented, increasing the funds already being collected from pas- (14) $2,400,000 for 3 dedicated commuter from $153,000,000,000 in 1988 to $320,000,000,000 senger processing fees; and lanes. in 1997. (4) authorizing the Customs Service to use (15) $1,050,000 for 3 automated targeting (3) On February 24, 1995, the United States a portion of the funds collected from the systems. and Canada agreed to the Canada/United merchandise processing fee to develop auto- (16) $572,000 for 26 weigh-in-motion sensors. States of America Accord on Our Shared mated commercial systems to facilitate the (17) $480,000 for 20 portable Treasury En- Border (in this Act referred to as the processing of merchandise. forcement Communication Systems (TECS). January 19, 1999 CONGRESSIONAL RECORD — SENATE S667 (b) FISCAL YEAR 2001.—Of the amounts TRADE ADJUSTMENT ASSISTANCE ber of modifications to the worker TAA made available for fiscal year 2001 under sec- IMPROVEMENTS ACT OF 1999 programs that the Administration, in tion 101, $2,658,200 shall be for the mainte- Nr. MOYNIHAN. Mr. President, I am consultation with concerned worker nance and support of the equipment and introducing today legislation that will training of personnel to maintain and sup- groups, has proposed. And I must also port the equipment described in subsection preserve a decades-old commitment by acknowledge the considerable efforts of (a). the United States Government to the Congressmen MATSUI and BONIOR on (c) ACQUISITION OF TECHNOLOGICALLY SUPE- American worker. The Trade Adjust- this matter during the last Congress, RIOR EQUIPMENT; TRANSFER OF FUNDS.— ment Assistance Improvements Act of which yielded a reform bill similar to (1) IN GENERAL.—The Commissioner of Cus- 1999 will ensure that the trade adjust- the one I am introducing today. toms may use amounts made available for ment assistance programs for workers The most significant of the reforms fiscal year 2000 under section 101 for the ac- and for firms, first established in 1962 would merge the two separate pro- quisition of equipment other than the equip- grams for workers, in an effort to make ment described in subsection (a) if such and now set to expire on June 30, 1999, other equipment— will continue uninterrupted through the program more effective and respon- (A)(i) is technologically superior to the September 30, 2001. The legislation also sible to workers, while at the same equipment described in subsection (a); and proposes a number of reforms to these time reducing administrative costs. (ii) will achieve at least the same results programs to help make them into more Key features of the merged programs at a cost that is the same or less than the effective tools for assisting workers include the following: equipment described in subsection (a); or who lose their jobs as a result of com- (1) Eligible workers may receive ben- (B) can be obtained at a lower cost than petition from imports or shifts in pro- efits because production has shifted to the equipment described in subsection (a). duction to overseas sites. any country, and not just to either (2) TRANSFER OF FUNDS.—Notwithstanding Mexico or Canada as the law currently any other provision of this section, the Com- By way of background, the Trade Ad- missioner of Customs may reallocate an justment Assistance program provides provides; amount not to exceed 10 percent of the eligible workers with income support, (2) The Secretary of Labor will expe- amount specified in any of paragraphs (1) training and other forms of assistance. dite her consideration of petitions for through (17) of subsection (a) for equipment It also grants technical help to eligible assistance. Instead of the current 60- specified in any other of such paragraphs (1) companies to improve their manufac- day review of TAA cases, this bill through (17). turing, marketing and other capabili- would require that determinations be TITLE II—ADDITIONAL PRECLEARANCE ties in the face of import competition. made within 40 days; ACTIVITIES First outlined in 1954 by United Steel (3) Certified workers will be required SEC. 201. CUSTOMS USER FEES. Workers President David MacDonald, to enroll in training within 16 weeks of (a) ADDITIONAL PRECLEARANCE ACTIVI- the basic Trade Adjustment Assistance layoff or eight weeks after being cer- TIES.—Section 13031(f)(3)(A)(iii) of the Con- program was enacted in the Trade Ex- tified as eligible for TAA benefits, solidated Omnibus Budget Reconciliation whichever is later, in order to qualify Act of 1985 (19 U.S.C. 58c(f)(3)(A)(iii)) is pansion Act of 1962 as part of President amended to read as follows: Kennedy’s vision of American trade for extended income support while in ‘‘(iii) to the extent funds remain available policy. It was based on a modest and training. This provision is intended to after making reimbursements under clause fair request from American labor: if promote the earliest possible adjust- (ii), in providing salaries for up to 50 full- some workers are to lose their jobs as ment; and time equivalent inspectional positions to a result of freer trade that benefits the (4) The bill provides for a net in- provide preclearance services.’’. country as a whole, a program should crease of $40 million in training funds (b) COLLECTION OF FEES FOR PASSENGERS to ensure that adequate resources will ABOARD COMMERCIAL VESSELS.—Section 13031 be established to help those workers of the Consolidated Omnibus Budget Rec- find new employment. The Trade Ad- be available to provide workers with onciliation Act of 1985 (19 U.S.C. 58c) is justment Assistance program was the the training they need to make the amended— response. As Luther Hodges, President transition to a new job. (1) in subsection (a), by amending para- Kennedy’s Secretary of Commerce, told Mr. President, it is essential that the graph (5) to read as follows: the Finance Committee during consid- United States Congress live up to its ‘‘(5)(A) Subject to subparagraph (B), for the eration of the Trade Expansion Act: longstanding commitment to the arrival of each passenger aboard a commer- American worker. The Trade Adjust- cial vessel or commercial aircraft from a Both workers and firms may encounter special difficulties when they feel the ad- ment Assistance programs must not be place outside the United States (other than a allowed to lapse. We have an obliga- place referred to in subsection (b)(1)(A)(i)), verse effects of import competition. This is $5. import competition caused directly by the tion, as well, to ensure that these pro- ‘‘(B) For the arrival of each passenger Federal Government when it lowers tariffs as grams operate in an effective and effi- aboard a commercial vessel from a place re- part of a trade agreement undertaken for the cient manner. The reforms proposed by ferred to in subsection (b)(1)(A)(i), $1.75’’; and long-term economic good of the country as a the Administration deserve the Sen- (2) in subsection (b)(1)(A), by striking ‘‘(A) whole. ate’s consideration. Time is of the es- No fee’’ and inserting ‘‘(A) Except as pro- The Federal Government has a special re- sponsibility in this case. When the Govern- sence, however, and I urge that the vided in subsection (a)(5)(B), no fee’’. Senate act promptly to reauthorize the (c) USE OF MERCHANDISE PROCESSING FEES ment has contributed to economic injuries, TAA programs. FOR AUTOMATED COMMERCIAL SYSTEMS.—Sec- it should also contribute to the economic ad- tion 13031(f) of the Consolidated Omnibus justments required to repair them. I ask unanimous consent that the Budget Reconciliation Act of 1985 (19 U.S.C. The 1962 Act established the basic text of the bill be inserted in the 58c(f)) is amended by adding at the end the TAA programs for workers and for RECORD. following: firms. Then in 1993, Congress included There being no objection, the bill was ‘‘(6) Of the amounts collected under para- in the implementing legislation for the ordered to be printed in the RECORD, as graphs (9) and (10) of subsection (a), North American Free Trade Agreement follows: $50,000,000 shall be available to the Customs S. 220 Service, subject to appropriations Acts, for a new adjustment assistance program Be it enacted by the Senate and House of Rep- automated commercial systems. Amounts for workers—the NAFTA Transitional resentatives of the United States of America in made available under this paragraph shall Adjustment Assistance program. Un- Congress assembled, remain available until expended.’’. like the basic TAA program for work- (d) EFFECTIVE DATE.—The amendments SECTION 1. SHORT TITLE. ers, which provides training and in- This Act may be cited as the ‘‘Trade Ad- made by this section take effect 30 days after come support only for workers who the date of enactment of this Act. justment Assistance Improvements Act of lose their jobs as a result of competi- 1999’’. By Mr. NOYNIHAN: tion from imports, the NAFTA–TAA SEC. 2. AUTHORIZATION OF CONSOLIDATED S. 220. A bill to amend the Trade Act program also provides assistance when TRADE ADJUSTMENT ASSISTANCE. of 1974 to consolidate and improve the workers lose their jobs because their (a) AUTHORIZATION OF APPROPRIATIONS.— (1) IN GENERAL.—Section 245 of the Trade trade adjustment assistance and factories have shifted production to Act of 1974 (19 U.S.C. 2317) is amended to read NAFTA transitional adjustment assist- Mexico or Canada. Moreover, the train- as follows: ance programs under that Act, and for ing requirements under the two pro- ‘‘SEC. 245. AUTHORIZATION OF APPROPRIATIONS. other purposes; to the Committee on grams differ somewhat. The bill I am ‘‘There are authorized to be appropriated Finance. introducing today incorporates a num- to the Department of Labor for each of the S668 CONGRESSIONAL RECORD — SENATE January 19, 1999 fiscal years 1999 through 2001 such sums as Federal Register that the Secretary has re- ment in the training requirement described may be necessary to carry out the purposes ceived the petition and initiated an inves- in subsection (a)(5)(A) if the Secretary deter- of this chapter.’’. tigation.’’. mines that such training requirement is not (2) TEMPORARY EXTENSION OF NAFTA AS- (b) EXPEDITED REVIEW OF PETITIONS BY feasible or appropriate for the worker, as in- SISTANCE.—Section 250(d)(2) of such Act (19 SECRETARY OF LABOR.—Section 223(a) of such dicated by 1 or more of the following: U.S.C. 2331(d)(2)) is amended by striking Act (19 U.S.C. 2273(a)) is amended in the first ‘‘(A) The worker has been notified that the ‘‘June 30, 1999, shall not exceed $15,000,000’’ sentence by striking ‘‘60 days’’ and inserting worker will be recalled by the firm from and inserting September 30, 1999, shall not ‘‘40 days’’. which the qualifying separation occurred. exceed $30,000,000’’. SEC. 4. ADDITION OF SHIFT IN PRODUCTION AS ‘‘(B) The worker has marketable skills as (b) REPEAL OF NAFTA TRANSITIONAL AD- BASIS FOR ELIGIBILITY FOR TRADE determined pursuant to an assessment of the JUSTMENT ASSISTANCE PROGRAM.— ADJUSTMENT ASSISTANCE. worker, which may include the profiling sys- (1) IN GENERAL.—Subchapter D of chapter 2 Section 222(a) of the Trade Act of 1974 (19 of title II of such Act (19 U.S.C. 2331) is here- tem under section 303(j) of the Social Secu- U.S.C. 2272(a)) is amended to read as follows: rity Act (42 U.S.C. 503(j)), carried out in ac- by repealed. ‘‘(a) A group of workers (including workers cordance with guidelines issued by the Sec- (2) CONFORMING AMENDMENTS.—(A) Section in any agricultural firm or subdivision of an retary. 249A of such Act (19 U.S.C. 2322) is hereby re- agricultural firm) shall be certified by the ‘‘(C) The worker is within 2 years of meet- pealed. Secretary as eligible to apply for adjustment ing all requirements for entitlement to old- (B) The table of contents of such Act is assistance under this chapter pursuant to a age insurance benefits under title II of the amended— petition filed under section 221 if the Sec- Social Security Act (42 U.S.C. 401 et seq.) (i) by striking the item relating to section retary determines that— (except for application therefor). 249A; and ‘‘(1) a significant number or proportion of ‘‘(D) The worker is unable to participate in (ii) by striking the items relating to sub- the workers in such workers’ firm or an ap- training due to the health of the worker, ex- chapter D of chapter 2 of title II. propriate subdivision of the firm have be- cept that a waiver under this subparagraph (c) TERMINATION.—Section 285 of such Act come totally or partially separated, or are shall not be construed to exempt a worker (19 U.S.C. 2271 note) is amended— threatened to become totally or partially (1) by amending subsection (c)(1) to read as from requirements relating to the availabil- separated; and follows: ity for work, active search for work, or re- ‘‘(2)(A)(i) the sales or production, or both, ‘‘(c)(1) Except as provided in paragraph (2), fusal to accept work under Federal or State of such firm or subdivision have decreased no assistance, vouchers, allowances, or other unemployment compensation laws. absolutely; payments may be provided under chapter 2, ‘‘(E) The first available enrollment date ‘‘(ii) imports of articles like or directly and no technical assistance may be provided for the approved training of the worker is competitive with articles produced by such under chapter 3, after September 30, 2001.’’; within 45 days after the date of the deter- firm or subdivision have increased; and and mination made under this paragraph, or, if ‘‘(iii) the increase in imports described in (2) in subsection (c)(2), by striking ‘‘June later, there are extenuating circumstances clause (ii) contributed importantly to such 30, 1999,’’ and inserting ‘‘September 30, 1999,’’. for the delay in enrollment, as determined workers’ separation or threat of separation (d) EFFECTIVE DATE.— pursuant to guidelines issued by the Sec- and to the decline in the sales or production (1) SUBSECTIONS (a) AND (c).—The amend- retary. of such firm or subdivision; or ments made by subsections (a) and (c) take ‘‘(F) There are insufficient funds available ‘‘(B) there has been a shift in production effect on— for training under this chapter, taking into by such workers’ firm or subdivision to a for- (A) July 1, 1999; or account the limitation under section eign country of articles like or directly com- (B) the date of enactment of this Act, 236(a)(2)(A). petitive with articles which are produced by whichever is earlier. ‘‘(G) The duration of training appropriate such firm or subdivision.’’. (2) SUBSECTION (b).—The amendments made for the individual to obtain suitable employ- by subsection (b) take effect on— SEC. 5. INFORMATION ON CERTAIN CERTIFI- ment exceeds the individual’s maximum en- (A) October 1, 1999; or CATIONS. titlement to basic and additional trade read- (B) 90 days after the date of enactment of Section 223 of the Trade Act of 1974 (19 justment allowances and, in addition, finan- this Act, U.S.C. 2273) is amended by adding at the end cial support available through other Federal whichever is later. the following subsection: or State programs, including title III of the SEC. 3. FILING OF PETITIONS AND PROVISION OF ‘‘(e) The Secretary shall collect and main- Job Training Partnership Act (29 U.S.C. 1651 RAPID RESPONSE ASSISTANCE; EX- tain information— et seq.) or chapter 5 of subtitle B of title I of PEDITED REVIEW OF PETITIONS BY ‘‘(1) identifying the countries to which the Workforce Investment Act of 1998, that SECRETARY OF LABOR. firms have shifted production resulting in would enable the individual to complete a (a) FILING OF PETITIONS AND PROVISION OF certifications under section 222(a)(2)(B), in- suitable training program cannot be assured. RAPID RESPONSE ASSISTANCE.—Section 221(a) cluding the number of such certifications re- of the Trade Act of 1974 (19 U.S.C. 2271(a)) is lating to each country; and ‘‘(2) The Secretary shall specify the dura- amended to read as follows: ‘‘(2) to the extent feasible, identifying the tion of the waiver under paragraph (1) and ‘‘(a)(1) A petition for certification of eligi- countries from which imports of articles shall periodically review the waiver to deter- bility to apply for adjustment assistance for have resulted in certifications under section mine whether the basis for issuing the waiv- a group of workers under this chapter may 222(a)(2)(A), including the number of such er remains applicable. If at any time the be filed with the Governor of the State in certifications relating to each country.’’. which such workers’ firm or subdivision is Secretary determines such basis is no longer located by any of the following: SEC. 6. ENROLLMENT IN TRAINING REQUIRE- applicable to the worker, the Secretary shall MENT. ‘‘(A) The group of workers (including work- revoke the waiver. Section 231(a)(5)(A) of the Trade Act of 1974 ers in an agricultural firm or subdivision of (19 U.S.C. 2291(a)(5)(A)) is amended— ‘‘(3) Pursuant to the agreement under sec- any agricultural firm). (1) by inserting ‘‘(i)’’ after ‘‘(A)’’; tion 239, the Secretary may authorize the ‘‘(B) The certified or recognized union or (2) by adding ‘‘and’’ after the comma at the State or State agency to carry out activities other duly authorized representative of such end; and described in paragraph (1) (except for the de- workers. (3) by adding at the end the following: ‘‘(C) Employers of such workers, one-stop termination under subparagraphs (F) and (G) ‘‘(ii) the enrollment required under clause operators or one-stop partners (as defined in of paragraph (1)). Such agreement shall in- (i) occurs no later than the latest of— section 101 of the Workforce Investment Act clude a requirement that the State or State ‘‘(I) the last day of the 16th week after the of 1998 (29 U.S.C. 2801)), or State employment agency submit to the Secretary the written worker’s most recent total separation from agencies, on behalf of such workers. statements provided pursuant to paragraph adversely affected employment which meets ‘‘(2) Upon receipt of a petition filed under (1) and a statement of the reasons for the the requirements of paragraphs (1) and (2); paragraph (1), the Governor shall— waiver. ‘‘(A) immediately transmit the petition to ‘‘(II) the last day of the 8th week after the the Secretary of Labor (hereinafter in this week in which the Secretary issues a certifi- ‘‘(4) The Secretary shall submit an annual chapter referred to as the ‘Secretary’); cation covering the worker; or report to the Committee on Finance of the ‘‘(B) ensure that rapid response assistance ‘‘(III) 45 days after the later of the dates Senate and the Committee on Ways and and basic readjustment services authorized specified in subclause (I) or (II), if the Sec- Means of the House of Representatives iden- under other Federal laws are made available retary determines there are extenuating cir- tifying the number of workers who received cumstances that justify an extension in the to the workers covered by the petition to the waivers and the average duration of such enrollment period;’’. extent authorized under such laws; and waivers issued under this subsection during ‘‘(C) assist the Secretary in the review of SEC. 7. WAIVERS OF TRAINING REQUIREMENTS. the preceding year.’’. the petition by verifying such information (a) IN GENERAL.—Section 231(c) of the and providing such other assistance as the Trade Act of 1974 (19 U.S.C. 2291(c)) is amend- (b) CONFORMING AMENDMENT.—Section Secretary may request. ed to read as follows: 231(a)(5)(C) of such Act (19 U.S.C. ‘‘(3) Upon receipt of the petition, the Sec- ‘‘(c)(1) The Secretary may issue a written 2291(a)(5)(C)) is amended by striking ‘‘cer- retary shall promptly publish notice in the statement to a worker waiving the enroll- tified’’. January 19, 1999 CONGRESSIONAL RECORD — SENATE S669 SEC. 8. PROVISION OF TRADE READJUSTMENT after the item relating to section 238 the fol- services for cleanup, repair, and recov- ALLOWANCES DURING BREAKS IN lowing: ery following a federally declared dis- TRAINING. ‘‘Sec. 238A. Supportive services.’’. Section 233(f) of the Trade Act of 1974 (19 aster. The senior senator from Hawaii U.S.C. 2293(f)) is amended in the matter pre- SEC. 13. ADDITIONAL CONFORMING AMEND- [Mr. INOUYE] joins me in sponsoring ceding paragraph (1) by striking ‘‘14 days’’ MENTS. this bill. and inserting ‘‘30 days’’. (a) SECTION 225.—Section 225(b) of the Trade Act of 1974 (19 U.S.C. 2275(b)) is amend- Everyone knows the tremendous SEC. 9. INCREASE IN ANNUAL TOTAL AMOUNT OF ed in each of paragraphs (1) and (2) by strik- costs incurred during a natural disas- PAYMENTS FOR TRAINING. ter. During the winter of 1997 through Section 236(a)(2)(A) of the Trade Act of 1974 ing ‘‘or subchapter D’’. (19 U.S.C. 2296(a)(2)(A)) is amended by strik- (b) SECTION 240.—Section 240(a) of such Act the spring of 1998, there were tornadoes ing ‘‘$80,000,000’’ and all that follows through (19 U.S.C. 2312(a)) is amended by striking and flooding in the southeastern states $70,000,000 and inserting ‘‘$150,000,000’’. ‘‘subchapter B of’’. that caused $1 billion in damage and SEC. 10. ELIMINATION OF QUARTERLY REPORT. SEC. 14. AVAILABILITY OF CONTINGENCY FUNDS. resulted in at least 132 deaths. From (a) IN GENERAL.—Section 236(d) of the (a) IN GENERAL.—Section 245 of the Trade December 1996 to January 1997, severe Trade Act of 1974 (19 U.S.C. 2296(d)) is amend- Act of 1974 (19 U.S.C. 2317), as amended by flooding over portions of California, ed by striking the last sentence. section 2, is amended— (1) by striking ‘‘There are authorized’’ and Washington, Oregon, Idaho, Nevada (b) EFFECTIVE DATE.—The amendment and Montana resulted in $3 billion in made by this section takes effect on October inserting ‘‘(a) IN GENERAL.—There are au- 1, 1999. thorized’’; and damages, while in September 1996, Hur- SEC. 11. COORDINATION WITH ONE-STOP DELIV- (2) by adding at the end the following: ricane Fran struck North Carolina and ERY SYSTEMS, THE JOB TRAINING ‘‘(b) CONTINGENCY FUNDS.—Subject to the Virginia at a cost of $5 billion. During PARTNERSHIP ACT, AND THE WORK- limitation contained in section 236(a)(2), if in the past decade, there have been a FORCE INVESTMENT ACT OF 1998. any fiscal year the funds available to carry number of deadly natural disasters (a) COORDINATION WITH ONE-STOP DELIVERY out the programs under this chapter are ex- throughout the United States and its SYSTEMS.—Section 235 of the Trade Act of hausted, there shall be made available from 1974 (19 U.S.C. 2295) is amended by inserting funds in the Treasury not otherwise appro- territories including hurricanes, floods, ‘‘, including the services provided through priated amounts sufficient to carry out such earthquakes, tornadoes, ice storms, one-stop delivery systems described in sec- programs for the remainder of the fiscal wildfires, mudslides, and blizzards. tion 134(c) of the Workforce Investment Act year.’’. Through round-the-clock media cov- of 1998 (19 U.S.C. 2864(c))’’ before the period (b) EFFECTIVE DATE.—The amendments erage, Americans have front row seats at the end of the first sentence. made by this section take effect on— to the destruction caused by these cat- (b) COORDINATION WITH JOB TRAINING PART- (1) July 1, 1999; or astrophic events. We sympathetically NERSHIP ACT AND WORKFORCE INVESTMENT (2) the date of enactment of this Act, ACT OF 1998.—Section 239(e) such Act (19 whichever is earlier. watch television as families sift U.S.C. 2311(e)) is amended— SEC. 15. REAUTHORIZATION OF ADJUSTMENT AS- through the debris of their lives and as (1) in the first sentence, by striking ‘‘or SISTANCE FOR FIRMS. men and women assess the loss of their title I of the Workforce Investment Act of (a) IN GENERAL.—Section 256(b) of the businesses. We witness the concern of 1998’’ and inserting ‘‘or under the provisions Trade Act of 1974 (19 U.S.C. 2346(b)) is amend- others, such as Red Cross volunteers relating to dislocated worker employment ed by striking ‘‘for the period beginning Oc- passing out blankets and food and citi- and training activities set forth in chapter 5 tober 1, 1998, and ending June 30, 1999’’ and zens traveling hundreds of miles to of subtitle B of title I of the Workforce In- inserting ‘‘for each of fiscal years 1999 help rebuild strangers’ homes. vestment Act of 1998 (29 U.S.C. 2861 et seq.), through 2001’’. as the case may be,’’; and (b) EFFECTIVE DATE.—The amendment Despite the outpouring of public sup- (2) by inserting after the first sentence the made by this section takes effect on— port that follows these disasters, there following: ‘‘Such coordination shall include (1) July 1, 1999; or are unscrupulous individuals who prey use of common reporting systems and ele- (2) the date of enactment of this Act, on the trusting and unsuspecting vic- ments, including common elements relating whichever is earlier. tims whose immediate concerns are ap- to participant data and performance out- SEC. 16. EFFECTIVE DATE; TRANSITION PROVI- plying for disaster assistance, seeking comes (including employment, retention of SION. temporary shelter, and rebuilding their employment, and wages).’’. (a) EFFECTIVE DATE.—Except as otherwise SEC. 12. SUPPORTIVE SERVICES. provided in this Act, this Act and the amend- lives. (a) IN GENERAL.—Part II of subchapter B of ments made by this Act take effect on— My interest in this was heighten by chapter 2 of title II of the Trade Act of 1974 (1) October 1, 1999; or Hurricane Iniki, which on September (19 U.S.C. 2295 et seq.) is amended by adding (2) 90 days after the date of enactment of 11, 1992, leveled the island of Kauai in at the end the following: this Act, Hawaii and caused $1.6 billion in dam- ‘‘SEC. 238A. SUPPORTIVE SERVICES. whichever is later. age. As the people of Kauai began the ‘‘(a) APPLICATION.—Any adversely affected (b) TRANSITION.—The Secretary of Labor recovery and rebuilding process, a con- worker covered by a certification under sub- may promulgate such rules as the Secretary tractor promising quick home repair chapter A of this chapter may file an appli- determines to be necessary to provide for the took disaster benefits from numerous cation with the Secretary for the provision implementation of the amendments made by of supportive services, including transpor- this Act. homeowners and fled the area without tation, child and dependent care, and other completing promised construction. similar services. By Mr. AKAKA (for himself and Most of these fraud victims never ‘‘(b) CONDITIONS.—The Secretary may ap- Mr. INOUYE): found relief. prove an application filed under subsection S. 221. A bill to amend the Robert T. Every disaster has examples of indi- (a) and provide supportive services to an ad- versely affected worker only if the Secretary Stafford Disaster Relief and Emer- viduals who are victimized twice—first determines that— gency Assistance Act to combat fraud by the disaster and later by uncon- ‘‘(1) the provision of such services is nec- and price-gouging committed in con- scionable price hikes and fraudulent essary to enable the worker to participate in nection with the provision of consumer contractors. In the wake of the 1993 or complete training; and goods and services for the cleanup, re- Midwest flooding, Iowa officials found ‘‘(2) the provision of such services is con- pair, and recovery from the effects of a that some vendors raised the price of sistent with the provision of supportive serv- major disaster declared by the Presi- portable toilets from $60 a month to $60 ices to participants under the program of dent, and for other purposes; to the a day! In other flood-hit areas, carpet employment and training assistance for dis- located workers carried out under title III of Committee on the Judiciary. cleaners hiked their prices to $350 per the Job Training Partnership Act (29 U.S.C. THE DISASTER VICTIMS CRIME PREVENTION ACT hour, while telemarketers set up tele- 1651 et seq.), as in effect on the date of enact- OF 1999 phone banks to solicit funds for phony ment of the Trade Adjustment Assistance Mr. AKAKA. Mr. President, today I flood-related charities. Nor will tele- Reform Act of 1999, or under the provisions am introducing the Disaster Victims vision viewers forget the scenes of be- relating to dislocated worker employment Crime Prevention Act of 1999, which leaguered South Floridians buying gen- and training activities set forth in chapter 5 would stop fraud against victims of fed- erators, plastic sheeting, and bottled of subtitle B of title I of the Workforce In- water at outrageous prices in the after- vestment Act of 1998 (29 U.S.C. 2861 et seq.), eral disasters. As with legislation I of- as the case may be.’’. fered in the past, my measure would math of Hurricane Andrew. (b) CONFORMING AMENDMENT.—The table of make it a federal crime to defraud per- The Disaster Victims Crime Preven- contents of such Act is amended by inserting sons through the sale of materials or tion Act of 1999 would criminalize some S670 CONGRESSIONAL RECORD — SENATE January 19, 1999 of the activities undertaken by unprin- S. 22. A bill to amend title 23, United tionally sound, has worked. All 50 cipled people whose sole intent is to de- States Code, to provide for national states have a minimum drinking age of fraud hard-working men and women. standard to prohibit the operation of 21. The National Highway Traffic Safe- This legislation will make it a federal motor vehicles by intoxicated individ- ty Administration tell us that the 21 crime to defraud persons through the uals; to the Committee on Environ- law has saved the lives of over 10,000 sale of materials or services for clean- ment and Public Works. precious young Americans. South Caro- up, repair, and recovery following a SAFE AND SOBER STREETS ACT OF 1999 lina just became the 50th state to pass federally declared disaster. Mr. LAUTENBERG. Mr. President, a Zero Tolerance statute. No state has While the Stafford Natural Disaster today I am reintroducing the Safe and ever lost federal highway dollars be- Act currently provides for civil and Sober Streets Act of 1999 with Senator cause of the federal government’s ef- criminal penalties for the misuse of DEWINE—a bill that will, if enacted forts to insure that our nation’s young disaster funds, it fails to address con- into law, save 500–700 lives a year. The people do not drink and drive. tractor fraud. To fill this gap, our leg- Safe and Sober Streets Act establishes The only consequence has been that islation would make it a federal crime a legal limit for drunken driving at .08 lives have been saved. to take money fraudulently from a dis- Blood Alcohol Content (BAC) in all 50 Mr. President, under the bill that In aster victim and fail to provide the states. am introducing today, all states would agreed upon material or service for the Mr. President, Senator DEWINE and I have three years in which to adopt .08 cleanup, repair, and recovery. offered this very bill last March as an BAC as the DWI definition. After those The Stafford Act also fails to address amendment to the ISTEA reauthoriza- three years, states would, as with the price gouging. Although it is the re- tion bill, now known as TEA–21, on be- 21 drinking age and Zero Tolerance, sponsibility of the states to impose re- half of the millions victims of drunk face a withholding of five percent of strictions on price increases prior to a driving crashes. We were joined by 22 their highway construction funds. federal disaster declaration, federal other cosponsors. I am proud to say Those who voted against the Safe and penalties for price gouging should be that the Senate—this body—voted 62 to Sober Streets Act or prevented a vote imposed once a federal disaster has 32 to adopt this amendment. It was in the other body said this was a choice been declared. I am pleased to incor- supported by one half of each caucus. between sanctions and incentives. It is porate a provision in this bill initiated The Senate cast this strong vote be- not. This was, and is, a choice between by our former colleague and cosponsor cause it knew that establishing .08 as what works and what does not. of this legislation in the 105th Con- the legal definition of drunken driving Worse, the incentive grant program gress, Senator John Glenn, who, fol- is responsible and will save lives. The contained in TEA–21 is a classic case of lowing Hurricane Andrew, sought to Senate knew that this bill would en- how not to construct an incentive combat price gouging and excessive courage states to adopt .08 BAC laws. grant program. For example, most of pricing of goods and services legisla- Without it, states will get bogged down the money goes to states that have al- tively. in legislative gridlock and will not be ready adopted .08 laws. Why provide in- I am pleased to note that there is ex- able to pass their own .08 BAC laws. As centive grants to states which have al- tensive cooperation among the various a result, lives that could have been ready acted? What incentive does a state and local offices that deal with saved will have instead been lost. state need to pass .08 if it has already fraud and consumer protection issues, Mr. President, the Senate spoke loud passed .08? Yet, that’s what the $500 and it is quite common for these fine and clear when it voted to adopt .08. million incentive grant program does. men and women to lend their expertise We voted to save lives. We voted to Mr. President, we have provided a fig to their colleagues from out-of-state protect our families from the grief as- leaf to cover our shame for failing to during a natural disaster. This ex- sociated with losing a loved one to do what 70 percent of the American change of experiences and practical so- drunk driving. We resisted the pressure people expected us to do—to override lutions has created a strong support of a powerful special interest and voted the narrow special interest and act to network. protect public health and safety. My bill would ensure that the Fed- against drunk driving. The President Mr. President, we know that .08 BAC eral Emergency Management Agency called on Congress to pass the bill and is the right level for DWI. Adopting develop public information in order to he would have signed it into law. this level will simply bring the United ensure that residents within a federally The problem came after the Senate’s States into the ranks of most other in- declared disaster area do not fall vic- resounding vote. The special interests dustrialized nations in setting reason- tim to fraud. The development of pub- stepped up their pressure tactics to able drunk driving limits. Canada, lic information materials to advise dis- stop our .08 amendment. Despite com- aster victims about ways to detect and mitments granted, the House Rules Great Britain, Ireland, Italy, Austria avoid fraud would come under the ju- Committee denied a vote. Democracy and Switzerland have .08 BAC limits. risdiction of the Director of the Fed- was squelched in back-room politics. France, Belgium, Finland and the eral Emergency Management Agency. Last May, Mr. President, the TEA–21 Netherlands’ limit is .05 BAC. Sweden’s At the present time, FEMA, under conference leaders—seven people—ig- is .02 BAC. the guidance of its director, James Lee nored the will of the Senate and the Last year, supporters of our amend- Witt, has done an outstanding job in American people. The final TEA–21 bill ment included President Clinton. The meeting natural disasters. I believe dropped the .08 BAC provision and re- National Safety Council. The Center there is only admiration and praise for placed it with a $500 million, six-year for Disease Control. The American the cooperation that now exists be- incentive grant program specifically Automobile Manufacturers Associa- tween FEMA and state agencies deal- for .08 BAC. The incentive grant pro- tion. Kemper, State Farm and Nation- ing with natural disasters. Therefore, I gram, as constructed in TEA–21, will wide insurance companies. Mothers have no doubt that government at all not produce national .08 standard. Against Drunk Driving. American Col- levels would benefit from the dissemi- Mr. President, when it comes to an lege of Emergency Physicians. Con- nation of federal anti-fraud related ma- issue like the minimum drinking age, sumer Federation of America. National terial following the declaration of a which I authored here in the Senate in Fire Protection Association. Advocates disaster by the President. 1984, or the Zero Tolerance for under- for Highway and Auto Safety. News- I look forward to working with my age drinking and driving, authored by paper editorial boards, such as The colleagues to pass legislation that Senator BYRD in 1995 or .08 in 1998, New York Times, The Washington sends a strong message to anyone there are only two things the federal Post, and The Baltimore Sun. thinking of defrauding a disaster vic- government can do. We can encourage But more important than the support tim or raising prices unnecessarily on the states to act by giving them money of scores of businesses, health and everyday commodities during a natural or withholding it until they have science organizations, governmental disaster. acted. The former has never worked, agencies, public opinion leaders, is the but the latter already has. support from the families and friends By Mr. LAUTENBERG (for him- Withholding federal resources, which of victims of drunk driving—like the self and Mr. DEWINE): has been tested and proven constitu- Fraziers of Westminister, Maryland, January 19, 1999 CONGRESSIONAL RECORD — SENATE S671 and Louise and Ronald Hammell, of ‘‘§ 165. National standard to prohibit oper- Mr. DASCHLE, Mr. CONRAD, Mr. Tuckerton, New Jersey. Brenda and ation of motor vehicles by intoxicated indi- BINGAMAN, Mr. EDWARDS, Mr. Randy lost their nine year old daugh- viduals TORRICELLI, Mr. KERRY, Mr. ter, Ashley, to drunk driving. Louise ‘‘(a) WITHHOLDING OF APPORTIONMENTS FOR BREAUX, Mr. INOUYE, Mrs. NONCOMPLIANCE.— and Ronald lost their 17 year old son, BOXER, and Mr. JOHNSON): ‘‘(1) FISCAL YEAR 2003.—The Secretary shall Matthew, to drunk driving. withhold 5 percent of the amount required to S. 223. A bill to help communities Mr. President, organizations who be apportioned to any State under each of modernize public school facilities, and support this bill have one thing in paragraphs (1), (3), and (4) of section 104(b) on for other purposes; to the Committee mind: the public’s interest. The health October 1, 2002, if the State does not meet on Finance. and safety of our communities and of the requirements of paragraph (3) on that THE PUBLIC SCHOOL MODERNIZATION ACT our roads is in the public’s interest. date. Mr. LAUTENBERG. Mr. President I Every thirty minutes, someone in ‘‘(2) SUBSEQUENT FISCAL YEARS.—The Sec- rise today to introduce the Public retary shall withhold 10 percent (including America—a mother, husband, child, School Modernization Act of 1999. I am grandchild, brother, sister—dies in an any amounts withheld under paragraph (1)) of the amount required to be apportioned to pleased to be joined in this effort by alcohol related crash. In the United any State under each of paragraphs (1), (3), my cosponsors, Senators ROBB, KEN- States, 39 percent of all fatal crashes and (4) of section 104(b) on October 1, 2003, NEDY, DASCHLE, CONRAD, BINGAMAN, ED- are alcohol related. Alcohol is the sin- and on October 1 of each fiscal year there- WARDS, TORRICELLI, KERRY, BREAUX, gle greatest factor in motor vehicle after, if the State does not meet the require- INOUYE, BOXER, and JOHNSON. deaths and injuries. ments of paragraph (3) on that date. Mr. President, the legislation I am ‘‘(3) REQUIREMENTS.—A State meets the re- .08 is a reasonable and responsible introducing today is about oppor- level at which to draw the line in fight- quirements of this paragraph if the State has enacted and is enforcing a law providing that tunity. If there is one essential job of a ing drunk driving. It is at .08 that a responsive government, it is to provide person is drunk and should not be driv- an individual who has an alcohol concentra- tion of 0.08 percent or greater while operat- opportunity—especially for young ing. ing a motor vehicle in the State is guilty of Americans. A solid education allows Adopting .08 BAC is just common the offense of driving while intoxicated (or young people to open the door to a sense. Think of it this way: you are in an equivalent offense that carries the great- your car at night, driving on a two lane world of opportunity. est penalty under the law of the State for op- However, too many American chil- road. Your child is sitting next to you. erating a motor vehicle after having con- dren open the door each morning to You see a car’s headlights approaching. sumed alcohol). enter a schoolhouse with inadequate The driver is a 170 pound man who just ‘‘(b) PERIOD OF AVAILABILITY; EFFECT OF COMPLIANCE AND NONCOMPLIANCE.— facilities for a modern learning envi- came from a bar, and drank five bottles ‘‘(1) PERIOD OF AVAILABILITY OF WITHHELD ronment. To help remedy this situa- of beer in one hour on an empty stom- FUNDS.— tion, my Public School Modernization ach. If he were driving in Maryland, he ‘‘(A) FUNDS WITHHELD ON OR BEFORE SEP- would not be considered drunk. But if Act will fuel a nationwide effort to ren- TEMBER 30, 2004.—Any funds withheld under ovate older schools and build new, he were driving in Virginia, he would subsection (a) from apportionment to any be. Does this make sense? We should State on or before September 30, 2004, shall state-of-art educational facilities. Mr. President, that is why this legis- not have a patchwork quilt of laws remain available until the end of the third lation must be at the top of the agenda when we are dealing with drunk driv- fiscal year following the fiscal year for which the funds are authorized to be appro- for the 106th Congress. As we face the ing. priated. new millennium, we must invest in our This bill—.08—simply reflects what ‘‘(B) FUNDS WITHHELD AFTER SEPTEMBER 30, sound science and research proves, and young people—our future. Congress 2004.—No funds withheld under this section must look ahead to the challenges of interjects some reality into our defini- from apportionment to any State after Sep- tion of drunk driving and applies it to tember 30, 2004, shall be available for appor- the next century and prepare a new all 50 states. tionment to the State. generation of Americans to continue No objective, credible person or orga- ‘‘(2) APPORTIONMENT OF WITHHELD FUNDS our world leadership in innovation, in- nization can deny that adopting .08 AFTER COMPLIANCE.—If, before the last day of dustry, arts and science. BAC laws is the right thing to do. This the period for which funds withheld under Mr. President, this legislation will subsection (a) from apportionment are to re- improve the very base, the very foun- bill does not eliminate the incentive main available for apportionment to a State grant program. In deference to those dation of American education. Our under paragraph (1)(A), the State meets the children’s educational experience be- who authorized the incentive grant requirements of subsection (a)(3), the Sec- program, but who also supported my .08 retary shall, on the first day on which the gins with the buildings they learn in bill, this bill specifically keeps the State meets the requirements, apportion to every day. grant program. States will have the the State the funds withheld under sub- We know the condition of these benefit of incentives for the first five section (a) that remain available for appor- buildings has a direct impact on learn- tionment to the State. years. After that, the money will be ing. A Georgetown University study re- ‘‘(3) PERIOD OF AVAILABILITY OF SUBSE- vealed that the achievement levels of withheld. But, given past experience, I QUENTLY APPORTIONED FUNDS.— expect no state to lose funds. students taught in substandard edu- ‘‘(A) IN GENERAL.—Any funds apportioned cational facilities were 11 percent The Senate has strongly supported under paragraph (2) shall remain available this once. It should do so again. I urge for expenditure until the end of the third fis- lower than students in modern facili- my colleagues to cosponsor this legis- cal year following the fiscal year in which ties. Similarly, a 1996 Virginia study lation. the funds are so apportioned. also found an 11 percentile point dif- Mr. President, I ask unanimous con- ‘‘(B) TREATMENT OF CERTAIN FUNDS.—Sums ference between students in sub- sent that the text of the bill be printed not obligated at the end of the period re- standard buildings and those in modern ferred to in subparagraph (A) shall lapse. in the RECORD. facilities. Both of these studies were ‘‘(4) EFFECT OF NONCOMPLIANCE.—If, at the controlled for other variables, such as There being no objection, the bill was end of the period for which funds withheld ordered to be printed in the RECORD, as under subsection (a) from apportionment are a student’s socioeconomic status. follows: available for apportionment to a State under Mr. President, this data, and numer- S. 222 paragraph (1)(A), the State does not meet the ous other studies like it, allows us to Be it enacted by the Senate and House of Rep- requirements of subsection (a)(3), the funds formulate a simple equation: Modern resentatives of the United States of America in shall lapse.’’. Schools Equal Better Learning. Congress assembled, (b) CONFORMING AMENDMENT.—The analysis Unfortunately, too many of our na- SECTION 1. SHORT TITLE. for subchapter I of chapter 1 of title 23, tion’s school buildings fall into the in- This Act may be cited as the ‘‘Safe and United States Code, is amended by adding at adequate category. A 1995 General Ac- the end the following: Sober Streets Act of 1999’’. counting Office report revealed that ‘‘165. National standard to prohibit oper- SEC. 2. NATIONAL STANDARD TO PROHIBIT OP- one-third of all schools, serving 14 mil- ERATION OF MOTOR VEHICLES BY ation of motor vehicles by in- INTOXICATED INDIVIDUALS. toxicated individuals.’’. lion students, need extensive repair or (a) IN GENERAL.—Subchapter I of chapter 1 replacement. In addition, 7 million stu- of title 23, United States Code, is amended by By Mr. LAUTENBERG (for him- dents attend school every day with life- adding at the end the following: self, Mr. ROBB, Mr. KENNEDY, threatening safety code violations. S672 CONGRESSIONAL RECORD — SENATE January 19, 1999 How can we expect our children to ef- their school facility needs and make modate increasing student enrollments; the fectively focus on their lessons in such sure that the bonding authority is dis- Department of Education has predicted that an environment? tributed in a way that ensures that the Nation will need an additional 6,000 In my home state of New Jersey we schools by 2006. schools with the greatest needs and (4) Many schools do not have the physical have a range of school modernization least resources do indeed benefit from infrastructure to take advantage of comput- needs. The condition of low income, the program. ers and other technology needed to meet the urban school facilities were at issue in This new bond authority will be split challenges of the next century. a decades-long lawsuit that was re- between two programs. Most of the au- (5) The Federal Government, by providing cently settled. However, the problem is thority will result from a new program, tax credits to bondholders to substitute for not just an urban problem. In my called Qualified School Construction interest paid by school districts, can lower State, and across the U.S., it is a sub- Bonds. The majority of this bond au- the costs of State and local school infra- structure investment, creating an incentive urban and rural problem as well. thority, 65 percent, will be allocated to for States and localities to increase their For example, suburban Montgomery States in proportion to each State’s own infrastructure improvement efforts and Township has seen its enrollment grow share of funds under the Title I Basic help ensure that all students are able to at- by 99.6 percent over last 6 years. An- Grant formula. The remaining 35 per- tend schools that are equipped for the 21st other suburban district, South Bruns- cent of the authority to issue these century. wick, has seen enrollment grow by 60 special, 15 year bonds, would be allo- (b) PURPOSE.—The purpose of this Act is to percent in the past five years. One provide Federal tax credits to bondholders, cated to the 100 school districts with in lieu of interest owed by school districts, South Brunswick’s student, sixth grad- the largest number of low income chil- to help States and localities to modernize er Amy Wolf, told me that the over- dren and in addition, to as many as 25 public school facilities and build the addi- crowding of facilities has prevented districts that demonstrate a particular tional public schools needed to educate the teachers from working on a ‘‘one to need, such as very high enrollment increasing number of students who will en- one’’ basis with students. growth or a low level of resources. roll in the next decade. This overcrowding often costs stu- The rest of the bond authority will SEC. 3. EXPANSION OF INCENTIVES FOR PUBLIC dents their normal recreation area. SCHOOLS. come from an existing program, Quali- (a) IN GENERAL.—Part IV of subchapter U Former playgrounds and sports fields fied Zone Academy Bonds, created by of chapter 1 of the Internal Revenue Code of on many suburban school campuses are the Taxpayer Relief Act of 1997. It also 1986 (relating to incentives for education becoming classroom trailer parks be- provides a tax credit in lieu of interest, zones) is amended to read as follows: cause of escalating enrollment. but for a variety of school expenses, in- ‘‘PART IV—INCENTIVES FOR QUALIFIED In addition to overcrowding, subur- cluding school modernization. This PUBLIC SCHOOL MODERNIZATION BONDS ban schools are crumbling. Many of bond program will be significantly ex- ‘‘Sec. 1397E. Credit to holders of qualified these facilities, built quickly in the panded and improved by this legisla- public school modernization 1960s, are not holding up well and need tion. bonds. extensive repair. Mr. President, the time for this legis- ‘‘Sec. 1397F. Qualified zone academy bonds. And in older, urban schools the con- lation is now, and it must be enacted ‘‘Sec. 1397G. Qualified school construction dition and age of buildings is making it during this Congress. The vast major- bonds. harder to move more computers into ‘‘SEC. 1397E. CREDIT TO HOLDERS OF QUALIFIED ity of Americans support a major fed- PUBLIC SCHOOL MODERNIZATION the classrooms or wire schools to the eral investment in modernizing public BONDS. Internet. According to the GAO report, schools. It should be a bipartisan goal, ‘‘(a) ALLOWANCE OF CREDIT.—In the case of nearly half of all schools don’t have an and I hope that a number of Repub- a taxpayer who holds a qualified public electrical system ready for the full- licans will cosponsor on this bill before school modernization bond on the credit al- lowance date of such bond which occurs dur- scale use of computers. In addition, 60 it becomes law. percent lack the conduits necessary to ing the taxable year, there shall be allowed The Public School Modernization Act as a credit against the tax imposed by this connect classrooms to a computer net- is long overdue, especially when you chapter for such taxable year the amount de- work. consider that President Eisenhower termined under subsection (b). Mr. President, to remedy this situa- first called for Federal school construc- ‘‘(b) AMOUNT OF CREDIT.— tion, my Public School Modernization tion legislation in his 1955 State of the ‘‘(1) IN GENERAL.—The amount of the credit Act presents school districts all over determined under this subsection with re- Union address. I hope we can make this spect to any qualified public school mod- the country with a unique opportunity proposal a reality before the 45th anni- to renovate existing buildings and ernization bond is the amount equal to the versary of President Eisenhower’s call product of— build new schoolhouses from the to action. ‘‘(A) the credit rate determined by the Sec- ground up. The bill will provide special I urge my colleagues to cosponsor retary under paragraph (2) for the month in bond authority to school districts that this bill. which such bond was issued, multiplied by will allow these districts to raise the Mr. President, I ask unanimous con- ‘‘(B) the face amount of the bond held by necessary funds for school moderniza- sent that the text of the bill be printed the taxpayer on the credit allowance date. tion by offering Federal tax credits to ‘‘(2) DETERMINATION.—During each cal- in the RECORD. endar month, the Secretary shall determine bondholders in lieu of traditional inter- There being no objection, the bill was est payments by States or school dis- a credit rate which shall apply to bonds ordered to be printed in the RECORD, as issued during the following calendar month. tricts. follows: The credit rate for any month is the percent- The low cost feature for school dis- S. 223 age which the Secretary estimates will on tricts is a simple concept. The districts Be it enacted by the Senate and House of average permit the issuance of qualified pub- will not be obligated to pay interest to Representatives of the United States of America lic school modernization bonds without dis- the bondholders. Rather the bond- in Congress assembled, count and without interest cost to the issuer. holders would receive a Federal tax SECTION 1. SHORT TITLE. credit equivalent to interest payments. ‘‘(c) LIMITATION BASED ON AMOUNT OF This Act may be cited as the ‘‘Public TAX.— Mr. President, these savings will free School Modernization Act of 1999’’. ‘‘(1) IN GENERAL.—The credit allowed under up local school district funds for teach- SEC. 2. FINDINGS AND PURPOSE. subsection (a) for any taxable year shall not ing and learning. The savings could (a) FINDINGS.—Congress makes the follow- exceed the excess of— also result in significant property tax ing findings: ‘‘(A) the sum of the regular tax liability relief for the community. (1) According to the General Accounting (as defined in section 26(b)) plus the tax im- In addition, this federal legislation Office, one-third of all elementary and sec- posed by section 55, over will not interfere in local control of ondary schools in the United States, serving ‘‘(B) the sum of the credits allowable under education. The Public School Mod- 14,000,000 students, need extensive repair or part IV of subchapter A (other than subpart ernization Act offers opportunity—not renovation. C thereof, relating to refundable credits). (2) School infrastructure problems exist ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the continuous Federal oversight or Fed- across the country, in urban, suburban, and credit allowable under subsection (a) exceeds eral agency sign-off for every project. rural school districts. the limitation imposed by paragraph (1) for The act simply requires States and (3) Many States and school districts will such taxable year, such excess shall be car- school districts to conduct a survey of need to build new schools in order to accom- ried to the succeeding taxable year and January 19, 1999 CONGRESSIONAL RECORD — SENATE S673

added to the credit allowable under sub- ‘‘(B) QUALIFIED CONTRIBUTIONS.—For pur- ‘‘(2) ALLOCATION OF LIMITATION.— section (a) for such taxable year. poses of subparagraph (A), the term ‘quali- ‘‘(A) ALLOCATION AMONG STATES.— ‘‘(d) QUALIFIED PUBLIC SCHOOL MODERNIZA- fied contribution’ means any contribution ‘‘(i) 1999 LIMITATION.—The national zone TION BOND; CREDIT ALLOWANCE DATE.—For (of a type and quality acceptable to the local academy bond limitation for calendar year purposes of this section— educational agency) of— 1999 shall be allocated by the Secretary ‘‘(1) QUALIFIED PUBLIC SCHOOL MODERNIZA- ‘‘(i) equipment for use in the qualified zone among the States on the basis of their re- TION BOND.—The term ‘qualified public academy (including state-of-the-art tech- spective populations of individuals below the school modernization bond’ means— nology and vocational equipment), poverty line (as defined by the Office of Man- ‘‘(A) a qualified zone academy bond, and ‘‘(ii) technical assistance in developing agement and Budget). ‘‘(B) a qualified school construction bond. curriculum or in training teachers in order ‘‘(ii) LIMITATION AFTER 1999.—The national ‘‘(2) CREDIT ALLOWANCE DATE.—The term to promote appropriate market driven tech- zone academy bond limitation for any cal- ‘credit allowance date’ means, with respect nology in the classroom, endar year after 1999 shall be allocated by to any issue, the last day of the 1-year period ‘‘(iii) services of employees as volunteer the Secretary among the States in the man- beginning on the date of issuance of such mentors, ner prescribed by section 1397G(d); except issue and the last day of each successive 1- ‘‘(iv) internships, field trips, or other edu- that, in making the allocation under this year period thereafter. cational opportunities outside the academy clause, the Secretary shall take into account ‘‘(e) OTHER DEFINITIONS.—For purposes of for students, or Basic Grants attributable to large local edu- this part— ‘‘(v) any other property or service specified cational agencies (as defined in section ‘‘(1) LOCAL EDUCATIONAL AGENCY.—The by the local educational agency. 1397G(e)). term ‘local educational agency’ has the ‘‘(3) QUALIFIED ZONE ACADEMY.—The term ‘‘(B) ALLOCATION TO LOCAL EDUCATIONAL meaning given to such term by section 14101 ‘qualified zone academy’ means any public AGENCIES.—The limitation amount allocated of the Elementary and Secondary Education school (or academic program within a public to a State under subparagraph (A) shall be Act of 1965. Such term includes the local edu- school) which is established by and operated allocated by the State education agency to cational agency that serves the District of under the supervision of a local educational qualified zone academies within such State. Columbia but does not include any other agency to provide education or training ‘‘(C) DESIGNATION SUBJECT TO LIMITATION State agency. below the postsecondary level if— AMOUNT.—The maximum aggregate face ‘‘(2) BOND.—The term ‘bond’ includes any ‘‘(A) such public school or program (as the amount of bonds issued during any calendar obligation. case may be) is designed in cooperation with year which may be designated under sub- ‘‘(3) STATE.—The term ‘State’ includes the business to enhance the academic curricu- section (a) with respect to any qualified zone District of Columbia and any possession of lum, increase graduation and employment academy shall not exceed the limitation the United States. rates, and better prepare students for the amount allocated to such academy under rigors of college and the increasingly com- ‘‘(4) PUBLIC SCHOOL FACILITY.—The term subparagraph (B) for such calendar year. plex workforce, ‘public school facility’ shall not include any ‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If stadium or other facility primarily used for ‘‘(B) students in such public school or pro- for any calendar year— athletic contests or exhibitions or other gram (as the case may be) will be subject to ‘‘(A) the limitation amount under this sub- events for which admission is charged to the the same academic standards and assess- section for any State, exceeds ments as other students educated by the general public. ‘‘(B) the amount of bonds issued during local educational agency, ‘‘(f) CREDIT INCLUDED IN GROSS INCOME.— such year which are designated under sub- ‘‘(C) the comprehensive education plan of Gross income includes the amount of the section (a) with respect to qualified zone such public school or program is approved by credit allowed to the taxpayer under this academies within such State, the local educational agency, and section and the amount so included shall be ‘‘(D)(i) such public school is located in an the limitation amount under this subsection treated as interest income. empowerment zone or enterprise community for such State for the following calendar ‘‘(g) BONDS HELD BY REGULATED INVEST- (including any such zone or community des- year shall be increased by the amount of MENT COMPANIES.—If any qualified public ignated after the date of enactment of this such excess. The preceding sentence shall school modernization bond is held by a regu- section), or not apply if such following calendar year is lated investment company, the credit deter- ‘‘(ii) there is a reasonable expectation (as after 2003. mined under subsection (a) shall be allowed of the date of issuance of the bonds) that at ‘‘SEC. 1397G. QUALIFIED SCHOOL CONSTRUCTION to shareholders of such company under pro- least 35 percent of the students attending BONDS. cedures prescribed by the Secretary. such school or participating in such program ‘‘(a) QUALIFIED SCHOOL CONSTRUCTION ‘‘SEC. 1397F. QUALIFIED ZONE ACADEMY BONDS. (as the case may be) will be eligible for free BOND.—For purposes of this part, the term ‘‘(a) QUALIFIED ZONE ACADEMY BOND.—For or reduced-cost lunches under the school ‘qualified school construction bond’ means purposes of this part— lunch program established under the Na- any bond issued as part of an issue if— ‘‘(1) IN GENERAL.—The term ‘qualified zone tional School Lunch Act. ‘‘(1) 95 percent or more of the proceeds of academy bond’ means any bond issued as ‘‘(4) QUALIFIED PURPOSE.—The term ‘quali- such issue are to be used for the construc- part of an issue if— fied purpose’ means, with respect to any tion, rehabilitation, or repair of a public ‘‘(A) 95 percent or more of the proceeds of qualified zone academy— school facility, such issue are to be used for a qualified pur- ‘‘(A) constructing, rehabilitating, or re- ‘‘(2) the bond is issued by a State or local pose with respect to a qualified zone acad- pairing the public school facility in which government within the jurisdiction of which emy established by a local educational agen- the academy is established, such school is located, cy, ‘‘(B) providing equipment for use at such ‘‘(3) the issuer designates such bond for ‘‘(B) the bond is issued by a State or local academy, purposes of this section, and government within the jurisdiction of which ‘‘(C) developing course materials for edu- ‘‘(4) the term of each bond which is part of such academy is located, cation to be provided at such academy, and such issue does not exceed 15 years. ‘‘(C) the issuer— ‘‘(D) training teachers and other school Rules similar to the rules of section ‘‘(i) designates such bond for purposes of personnel in such academy. 1397F(a)(5) shall apply for purposes of para- this section, ‘‘(5) TEMPORARY PERIOD EXCEPTION.—A graph (1). ‘‘(ii) certifies that it has written assur- bond shall not be treated as failing to meet ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES- ances that the private business contribution the requirement of paragraph (1)(A) solely by IGNATED.—The maximum aggregate face requirement of paragraph (2) will be met reason of the fact that the proceeds of the amount of bonds issued during any calendar with respect to such academy, and issue of which such bond is a part are in- year which may be designated under sub- ‘‘(iii) certifies that it has the written ap- vested for a reasonable temporary period section (a) by any issuer shall not exceed the proval of the local educational agency for (but not more than 36 months) until such sum of— such bond issuance, and proceeds are needed for the purpose for ‘‘(1) the limitation amount allocated under ‘‘(D) the term of each bond which is part of which such issue was issued. Any earnings on subsection (d) for such calendar year to such such issue does not exceed 15 years. such proceeds during such period shall be issuer, and ‘‘(2) PRIVATE BUSINESS CONTRIBUTION RE- treated as proceeds of the issue for purposes ‘‘(2) if such issuer is a large local edu- QUIREMENT.— of applying paragraph (1)(A). cational agency (as defined in subsection (e)) ‘‘(A) IN GENERAL.—For purposes of para- ‘‘(b) LIMITATIONS ON AMOUNT OF BONDS or is issuing on behalf of such an agency, the graph (1), the private business contribution DESIGNATED.— limitation amount allocated under sub- requirement of this paragraph is met with ‘‘(1) IN GENERAL.—There is a national zone section (e) for such calendar year to such respect to any issue if the local educational academy bond limitation for each calendar agency. agency that established the qualified zone year. Such limitation is— ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF academy has written commitments from pri- ‘‘(A) $400,000,000 for 1999, BONDS DESIGNATED.— vate entities to make qualified contributions ‘‘(B) $1,400,000,000 for 2000, ‘‘(1) IN GENERAL.—There is a national having a present value (as of the date of ‘‘(C) $1,400,000,000 for 2001, and qualified school construction bond limita- issuance of the issue) of not less than 10 per- ‘‘(D) except as provided in paragraph (3), tion for each calendar year equal to the dol- cent of the proceeds of the issue. zero after 2001. lar amount specified in paragraph (2) for S674 CONGRESSIONAL RECORD — SENATE January 19, 1999 such year, reduced, in the case of calendar ‘‘(iii) the extent to which the public ‘‘(i) the overall condition of the local edu- years 2000 and 2001, by 1.5 percent of such schools in the State offer the physical infra- cational agency’s school facilities, including amount. structure needed to provide a high-quality health and safety problems, ‘‘(2) DOLLAR AMOUNT SPECIFIED.—The dollar education to all students, and ‘‘(ii) the capacity of the agency’s schools amount specified in this paragraph is— ‘‘(B) a description of how the State will al- to house projected enrollments, and ‘‘(A) $9,700,000,000 for 2000, locate to local educational agencies, or oth- ‘‘(iii) the extent to which the agency’s ‘‘(B) $9,700,000,000 for 2001, and erwise use, its allocation under this sub- schools offer the physical infrastructure ‘‘(C) except as provided in subsection (f), section to address the needs identified under needed to provide a high-quality education zero after 2001. subparagraph (A), including a description of to all students, ‘‘(d) 65-PERCENT OF LIMITATION ALLOCATED how it will— ‘‘(B) a description of how the local edu- AMONG STATES.— ‘‘(i) give highest priority to localities with cational agency will use its allocation under ‘‘(1) IN GENERAL.—Sixty-five percent of the the greatest needs, as demonstrated by inad- this subsection to address the needs identi- limitation applicable under subsection (c) for equate or overcrowded school facilities cou- fied under subparagraph (A), and any calendar year shall be allocated among pled with a low level of resources to meet ‘‘(C) a description of how the local edu- the States under paragraph (2) by the Sec- those needs, cational agency will ensure that its alloca- retary. The limitation amount allocated to a ‘‘(ii) use its allocation under this sub- tion under this subsection is used only to State under the preceding sentence shall be section to assist localities that lack the fis- supplement, and not supplant, the amount of allocated by the State education agency to cal capacity to issue bonds on their own, in- school construction, rehabilitation, or repair issuers within such State and such alloca- cluding the issuance of bonds by the State on in the locality that would have occurred in tions may be made only if there is an ap- behalf of such localities, and the absence of such allocation. ‘‘(iii) ensure that its allocation under this proved State application. A rule similar to the rule of the last sen- subsection is used only to supplement, and ‘‘(2) ALLOCATION FORMULA.—The amount to tence of subsection (d)(5) shall apply for pur- not supplant, the amount of school construc- be allocated under paragraph (1) for any cal- poses of this paragraph. endar year shall be allocated among the tion, rehabilitation, and repair in the State States in proportion to the respective that would have occurred in the absence of ‘‘(f) CARRYOVER OF UNUSED LIMITATION.—If amounts each such State received for Basic such allocation. for any calendar year— Grants under subpart 2 of part A of title I of Any allocation under paragraph (1) by a ‘‘(1) the amount allocated under subsection the Elementary and Secondary Education State education agency shall be binding if (d) to any State, exceeds Act of 1965 (20 U.S.C. 6331 et seq.) for the such agency reasonably determined that the ‘‘(2) the amount of bonds issued during most recent fiscal year ending before such allocation was in accordance with the plan such year which are designated under sub- calendar year. For purposes of the preceding approved under this paragraph. section (a) pursuant to such allocation, sentence, Basic Grants attributable to large ‘‘(e) 35-PERCENT OF LIMITATION ALLOCATED the limitation amount under such subsection local educational agencies (as defined in sub- AMONG LARGEST SCHOOL DISTRICTS.— for such State for the following calendar section (e)) shall be disregarded. ‘‘(1) IN GENERAL.—Thirty-five percent of year shall be increased by the amount of ‘‘(3) MINIMUM ALLOCATIONS TO STATES.— the limitation applicable under subsection such excess. A similar rule shall apply to the ‘‘(A) IN GENERAL.—The Secretary shall ad- (c) for any calendar year shall be allocated amounts allocated under subsection (e). The just the allocations under this subsection for under paragraph (2) by the Secretary among subsection shall not apply if such following any calendar year for each State to the ex- local educational agencies which are large calendar year is after 2003. tent necessary to ensure that the sum of— local educational agencies for such year. No qualified school construction bond may be ‘‘(g) SET-ASIDE ALLOCATED AMONG INDIAN ‘‘(i) the amount allocated to such State TRIBES.— under this subsection for such year, and issued by reason of an allocation to a large local educational agency under the preceding ‘‘(1) IN GENERAL.—The 1.5 percent set-aside ‘‘(ii) the aggregate amounts allocated applicable under subsection (c)(1) for any under subsection (e) to large local edu- sentence unless such agency has an approved local application. calendar year shall be allocated under para- cational agencies in such State for such graph (2) among Indian tribes for the con- year, ‘‘(2) ALLOCATION FORMULA.—The amount to be allocated under paragraph (1) for any cal- struction, rehabilitation, or repair of tribal is not less than an amount equal to such endar year shall be allocated among large schools. No allocation may be made under State’s minimum percentage of 65 percent of local educational agencies in proportion to the preceding sentence unless the Indian the national qualified school construction the respective amounts each such agency re- tribe has an approved application. bond limitation under subsection (c) for the ceived for Basic Grants under subpart 2 of ‘‘(2) ALLOCATION FORMULA.—The amount to calendar year. part A of title I of the Elementary and Sec- be allocated under paragraph (1) for any cal- ‘‘(B) MINIMUM PERCENTAGE.—A State’s min- ondary Education Act of 1965 (20 U.S.C. 6331 endar year shall be allocated among Indian imum percentage for any calendar year is et seq.) for the most recent fiscal year end- tribes on a competitive basis by the Sec- the minimum percentage described in sec- ing before such calendar year. retary of Interior, in consultation with the tion 1124(d) of the Elementary and Secondary ‘‘(3) LARGE LOCAL EDUCATIONAL AGENCY.— Secretary of the Education— Education Act of 1965 (20 U.S.C. 6334(d)) for For purposes of this section, the term ‘large ‘‘(A) through a negotiated rulemaking pro- such State for the most recent fiscal year local educational agency’ means, with re- cedure with the tribes in the same manner as ending before such calendar year. spect to a calendar year, any local edu- the procedure described in section 106(b)(2) of ‘‘(4) ALLOCATIONS TO CERTAIN POSSES- cational agency if such agency is— the Native American Housing Assistance and SIONS.—The amount to be allocated under ‘‘(A) among the 100 local educational agen- Self-Determination Act of 1996 (25 U.S.C. paragraph (1) to any possession of the United cies with the largest numbers of children 4116(b)(2)), and States other than Puerto Rico shall be the aged 5 through 17 from families living below ‘‘(B) based on criteria described in para- amount which would have been allocated if the poverty level, as determined by the Sec- graphs (1), (3), (4), (5), and (6) of section all allocations under paragraph (1) were retary using the most recent data available 12005(a) of the Elementary and Secondary made on the basis of respective populations from the Department of Commerce that are Education Act of 1965 (20 U.S.C. 8505(a)). of individuals below the poverty line (as de- satisfactory to the Secretary, or ‘‘(3) APPROVED APPLICATION.—For purposes fined by the Office of Management and Budg- ‘‘(B) 1 of not more than 25 local edu- of paragraph (1), the term ‘approved applica- et). In making other allocations, the amount cational agencies (other than those described tion’ means an application submitted by an to be allocated under paragraph (1) shall be in clause (i)) that the Secretary of Education Indian tribe which is approved by the Sec- reduced by the aggregate amount allocated determines (based on the most recent data retary of Education and which includes— under this paragraph to possessions of the available satisfactory to the Secretary) are ‘‘(A) the basis upon which the applicable United States. in particular need of assistance, based on a tribal school meets the criteria described in ‘‘(5) APPROVED STATE APPLICATION.—For low level of resources for school construc- paragraph (2)(B), and purposes of paragraph (1), the term ‘approved tion, a high level of enrollment growth, or ‘‘(B) an assurance by the Indian tribe that State application’ means an application such other factors as the Secretary deems such tribal school will not receive funds pur- which is approved by the Secretary of Edu- appropriate. suant to allocations described in subsection cation and which includes— ‘‘(4) APPROVED LOCAL APPLICATION.—For (d) or (e). ‘‘(A) the results of a recent publicly-avail- purposes of paragraph (1), the term ‘approved ‘‘(4) DEFINITIONS.—For purposes of this able survey (undertaken by the State with local application’ means an application subsection— the involvement of local education officials, which is approved by the Secretary of Edu- ‘‘(A) INDIAN TRIBE.—The term ‘Indian tribe’ members of the public, and experts in school cation and which includes— has the meaning given such term by section construction and management) of such ‘‘(A) the results of a recent publicly-avail- 45A(c)(6). State’s needs for public school facilities, in- able survey (undertaken by the local edu- ‘‘(B) TRIBAL SCHOOL.—The term ‘tribal cluding descriptions of— cational agency with the involvement of school’ means a school that is operated by an ‘‘(i) health and safety problems at such fa- school officials, members of the public, and Indian tribe for the education of Indian chil- cilities, experts in school construction and manage- dren with financial assistance under grant ‘‘(ii) the capacity of public schools in the ment) of such agency’s needs for public under the Tribally Controlled Schools Act of State to house projected enrollments, and school facilities, including descriptions of— 1988 (25 U.S.C. 2501 et seq.) or a contract with January 19, 1999 CONGRESSIONAL RECORD — SENATE S675 the Bureau of Indian Affairs under the In- BREAUX, Mr. INOUYE, Mrs. I urge all of our colleagues in the dian Self-Determination and Education As- BOXER, and Mr. JOHNSON): State to recognize the urgent school sistance Act (25 U.S.C. 450f et seq.).’’ S. 223. A bill to help communities construction needs of all of our States (b) REPORTING.—Subsection (d) of section moderize public school facilities, and and to work with us in passing this 6049 of the Internal Revenue Code of 1986 (re- for other purposes; to the Committee lating to returns regarding payments of in- particular legislation. terest) is amended by adding at the end the on Finance. following: PUBLIC SCHOOL MODERNIZAATION ACT OF 1999 By Mr. MOYNIHAN: ‘‘(8) REPORTING OF CREDIT ON QUALIFIED Mr. ROBB. Mr. President, I rise to S. 224. A bill to amend the Internal PUBLIC SCHOOL MODERNIZATION BONDS.— join with Senator LAUTENBERG to in- Revenue Code of 1986 to correct the ‘‘(A) IN GENERAL.—For purposes of sub- troduce the Public School Moderniza- treatment of tax-exempt financing of section (a), the term ‘interest’ includes tion Act of 1999. professional sports facilities; to the amounts includible in gross income under I was gratified that so many Mem- Committee on Finance. section 1397E(f) and such amounts shall be bers of this body recognized last year THE STOP TAX-EXEMPT ARENA DEBT ISSUANCE treated as paid on the credit allowance date that the need for school construction ACT (as defined in section 1397E(d)(2)). and modernization is vital. The legisla- Mr. MOYNIHAN. Mr. President, I rise ‘‘(B) REPORTING TO CORPORATIONS, ETC.— Except as otherwise provided in regulations, tion that Senator LAUTENBERG and I today to introduce a tax bill that in the case of any interest described in sub- are introducing is designed to help would correct a serious misallocation paragraph (A) of this paragraph, subsection States build new schools and repair and of our limited resources under present (b)(4) of this section shall be applied without modernize outdated ones, so that our law: a tax subsidy that inures largely regard to subparagraphs (A), (H), (I), (J), (K), children will have a better, more mod- to the benefit of wealthy sports fran- and (L)(i). ern and safe environment in which to chise owners and their players. This ‘‘(C) REGULATORY AUTHORITY.—The Sec- learn. legislation—the Stop Tax-exempt retary may prescribe such regulations as are A few weeks ago, the Thomas Jeffer- Arena Debt Issuance Act, or STADIA necessary or appropriate to carry out the son Center for Educational Design at purposes of this paragraph, including regula- for short—was introduced by the Sen- tions which require more frequent or more the University of Virginia issued a dev- ator from New York for the first time detailed reporting.’’ astating report detailing the alarming in 1996. Since that time, the bill has at- (c) CLERICAL AMENDMENTS.— condition of many of Virginia’s tracted the close scrutiny of bond (1) The table of parts for subchapter U of schools. Over 3,000 trailers are being counsel and their clients, and has re- chapter 1 of the Internal Revenue Code of used to hold classes. Two out of 3 ceived much attention in the press, al- 1986 is amended by striking the item relating school districts have held classes in most all of which has been favorable. to part IV and inserting the following: auditoriums, cafeterias, storage areas, Mr. Keith Olbermann, at the time an and book closets, and 53 percent of Vir- anchor of ESPN’s Sportscenter pro- ‘‘Part IV. Incentives for qualified public ginia school districts had to increase gram, even declared that the introduc- school modernization bonds.’’ the size of their classes in order to ac- tion of the bill was ‘‘paramount among (2) Part V of subchapter U of chapter 1 of commodate their divisions’ growing all other sports stories’’ when intro- such Code is amended by redesignating both student populations. duced. Passage of the bill, Mr. section 1397F and the item relating thereto We know that smaller class sizes do, Olbermann said, would be ‘‘the vaccine in the table of sections for such part as sec- in fact, have a dramatic impact on stu- tion 1397H. that . . . could conceivably at least dent learning, especially in the first 3 lead towards the cure, if not cure im- (d) EFFECTIVE DATES.— years. So in order to give our children (1) IN GENERAL.—Except as provided in mediately, almost all the ills of paragraph (2), the amendments made by this the learning environment they deserve, sports.’’ section shall apply to obligations issued we have to fix the leaky roofs, build Mr. Olbermann may just be right after December 31, 1998. the additional classrooms, and build about the importance of this bill, both (2) REPEAL OF RESTRICTION ON ZONE ACAD- more schools to accommodate our to sports fans and to taxpayers. The EMY BOND HOLDERS.—The repeal of the limi- growing student population, and to re- bill closes a big loophole, a loophole tation of section 1397E of the Internal Reve- duce class size. that ultimately injures state and local nue Code of 1986 (as in effect on the day be- This is a constructive role for the governments and other issuers of tax- fore the date of enactment of this Act) to eli- Federal Government to play. In fact, it exempt bonds, that provides an unin- gible taxpayers (as defined in subsection was a Republican President, Dwight D. (d)(6) of such section) shall apply to obliga- tended federal subsidy that con- Eisenhower, who proposed a massive tions issued after December 31, 1997. travenes Congressional intent, that un- $1.1 billion school construction initia- SEC. 4. SENSE OF THE SENATE REGARDING derwrites bidding wars among cities FUNDING FOR BIA SCHOOL FACILI- tive in 1955. Our States need our help, Mr. Presi- battling for professional sports fran- TIES. chises, and that enriches persons who (a) FINDINGS.—The Senate finds that— dent. This legislation does not usurp (1) the Bureau of Indian Affairs operates 1 local control of education or hinder need no federal assistance whatsoever. of only 2 federally-run school systems; and States and localities from developing A decade ago, I was much involved in (2) there is a clear Federal responsibility to their own solutions to the problem of the drafting of the Tax Reform Act of ensure that the more than 50,000 students at- improving the academic performance 1986. A major objective of that legisla- tending these schools have decent, safe of our children. Rather, this bill is in- tion was to simplify the Tax Code by schools. tended to complement the efforts of eliminating a large number of loop- (b) SENSE OF THE SENATE.—It is the sense the many State legislatures that are holes that had come to be viewed as of the Senate that— unfair because they primarily bene- (1) sufficient funds should be provided in now wrestling with the questions of fiscal year 2000 to begin construction of 3 how to repair and equip old schools and fited small groups of taxpayers. One of new Bureau of Indian Affairs school facilities how to build new schools. the loopholes we sought to close in 1986 and to increase funds available for the im- Mr. President, no child should be was one that permitted builders of pro- provement and repair of existing facilities; forced to go to a school without heat, fessional sports facilities to use tax-ex- and or have to wade regularly through empt bonds. Mind, we had nothing (2) in addition, Congress should consider standing water to get to class, or be ex- against new stadium construction, but enacting legislation to establish other fund- pected to learn in a trailer with poor we made the judgment that scarce Fed- ing mechanisms that would leverage Federal eral resources could surely be used in investments on behalf of Bureau of Indian ventilation. Our children and their par- Affairs schools in order to address the seri- ents need our help. ways that would better serve the public ous construction backlog which exists at I thank my colleague, Senator LAU- good. The increasing proliferation of tribal schools. TENBERG, for his work on this issue, tax-exempt bonds had driven up inter- and I look forward to working with est costs for financing roads, schools, By Mr. LAUTENBERG (for him- him on this effort to bring it to a suc- libraries, and other governmental pur- self, Mr. ROBB, Mr. KENNEDY, cessful conclusion. I also thank Sen- poses, led to mounting revenue losses Mr. DASCHLE, Mr. CONRAD, Mr. ators DASCHLE, KENNEDY, KERRY, to the U.S. Treasury, caused an ineffi- BINGAMAN, Mr. EDWARDS, Mr. TORRICELLI, EDWARDS, and BINGAMAN cient allocation of capital, and allowed TORRICELLI, Mr. KERRY, Mr. for joining us today. wealthy taxpayers to shield a growing S676 CONGRESSIONAL RECORD — SENATE January 19, 1999 amount of their investment income in state lottery revenues towards con- Nor do these new stadiums provide from income tax by purchasing tax-ex- struction of the stadium. Mr. Modell much, if any, economic benefit to their empt bonds. Thus, we expressly forbade agreed to contribute $24 million toward local communities. Professors Roger G. use of ‘‘private activity’’ bonds for the project and, in return, receives Noll and Andrew Zimbalist recently sports facilities, intending to eliminate rent-free use of the stadium (the fran- published Sports, Jobs & Taxes with tax-exempt financing of these facilities chise pays only for the operating and the Brookings Institution Press, in altogether. maintenance costs), $65 million in sales which they presented studies of the Yet team owners, with help from of rights to purchase season tickets economic impact of professional sports clever tax counsel, soon recognized (so-called ‘‘personal seat licenses’’), all facilities. The conclusion: that the change could work to their ad- revenues from selling the right to [I]n every case, the authors find that the vantage. As columnist Neal R. Pierce name the stadium, luxury suites, pre- local economic impact of sports teams and wrote, team owners ‘‘were not check- mium seats, in-part advertising, and facilities is far smaller than proponents al- lege; in some cases it is negative. These find- mated for long. They were soon exhib- concessions, and 50 percent of all reve- ings are valid regardless of whether the bene- iting the gall to ask mayors to finance nues from stadium events other than fits are measured for the local neighborhood, their stadiums with [governmental] Ravens’ games (with the right to con- for the city, or for the entire metropolitan purpose bonds.’’ Congress did not an- trol the booking of those events). area in which a facility is located. ticipate this. After all, by law, govern- Financial World reported that the Or, as concluded by Ronald D. Utt in mental bonds used to build stadiums value of the Baltimore Ravens’ fran- his Heritage Foundation would be tax-exempt only if no more chise increased from $165 million in ‘‘Backgrounder’’ Cities in Denial: The than 10 percent of the debt service is 1992 (i.e., before the move from Cleve- False Promise of Subsidized Tourist derived from stadium revenue sources. land) to an estimated $250 million after and Entertainment Complexes: In other words, non-stadium govern- its first season in the new stadium. It’s As the record from around the country in- mental revenues (i.e., tax revenues, lot- little wonder that Mr. Modell stated: dicates, the economic boost from public in- tery proceeds, and the like) must be ‘‘The pride and presence of a profes- vestment in entertainment complexes is ex- used to repay the bulk of the debt, free- sional football team is far more impor- ceptionally modest at best, and counter- tant than 30 libraries, and I say that productive at worst. It diverts scarce re- ing team owners to pocket stadium sources and public attention from the less revenues. Who would have thought with all due respect to the learning glamorous activities that make more mean- that local officials, in order to attract process.’’ ingful contributions to the public’s well- or retain a team, would capitulate to Meanwhile, the city of Cleveland has being. team owners—granting concessionary been building a new, $225 million sta- And what of the economic con- stadium leases and committing limited dium to house an expansion football sequences to the communities aban- government revenues to repay stadium team. When Mr. Modell decided to doned by teams that relocate? debt, thereby hindering their own abil- move his team to Baltimore, the NFL Any job growth that does result is ex- ity to provide schools, roads and other agreed to grant Cleveland a new foot- tremely expensive. The Congressional public investments? ball team with the same name: the Research Service (CRS) reported that The result has been a stadium con- Cleveland Browns. Most cities are not the new $177 million football stadium struction boom unlike anything we as fortunate when a team leaves. for the Baltimore Ravens is expected to have ever seen, and there is no end in We are even reaching a point at cost $127,000 per job created. By con- sight. which stadiums are being abandoned trast, the cost per job generated by What is driving the demand for new before they have been used for 10 to 15 Maryland’s economic development pro- stadiums? Mainly, team owners’ bot- years. An article in Barron’s reported gram is just $6,250. tom lines and rising player salaries. Al- that a perception of ‘‘economic obso- Finally, Federal taxpayers receive though our existing stadiums are gen- lescence’’ on the part of some owners absolutely no economic benefit for pro- erally quite serviceable, team owners has doomed even recently-built venues: viding this subsidy. As CRS pointed can generate greater income, increase The eight-year-old Miami Arena is facing a out, ‘‘Almost all stadium spending is their franchise values dramatically, future without its two major tenants, the spending that would have been made on and compete for high-priced free agents Florida Panthers hockey team and the other activities within the United with new tax-subsidized, single-purpose Miami Heat basketball franchise, because of States, which means that benefits to stadiums equipped with luxury inadequate seating capacity and a paucity of the nation as a whole are near zero.’’ luxury suites. The Panthers have already cut skyboxes, club seats and the like. After all, these terms will invariably a deal to move to a new facility that nearby locate somewhere in the United States, Thus, using their monopoly power, Broward County is building for them at a owners threaten to move, forcing bid- cost of around $200 million. Plans call for it is just a matter of where. And should ding wars among cities. End result: Dade County to build a new $210 million the federal taxpayers in the team’s cur- new, tax-subsidized stadiums with arena before the end of the decade, despite rent home town be forced to pay for fancy amenities and sweetheart lease the fact that the move will leave local tax- the team’s new stadium in a new city? deals. payers stuck with servicing the debt on two The answer is unmistakably no. To cite a case in point, Mr. Art Miami arenas rather than just one. Nevertheless, it seems that every day Modell recently moved the Cleveland How do taxpayers benefit from all another professional sports team is de- manding a new stadium, threatening a Browns professional football team from this? They don’t. Ticket prices go way relocation if the demand is not met. Cleveland to Baltimore to become the up—and stay up—after a new stadium This is a growing phenomenon. Profes- Ravens. Prior to relocating, Mr. Modell opens. So while fans are asked to foot sors Noll and Zimbalist wrote that: had said, ‘‘I am not about to rape the the bills through tax subsidies, many Between 1989 and 1997, thirty-one new sta- City [of Cleveland] as others in my no longer can afford the price of admis- sion. A study by Newsday found that diums and arenas were built. At least thirty- league have done. You will never hear nine additional teams are seeking new facili- me say ‘if I don’t get this I’m moving.’ ticket prices rose by 32 percent in five ties, are in the process of finalizing the deal You can go to press on that one. I new baseball stadiums, as compared to to build one, or are waiting to move into couldn’t live with myself if I did that.’’ a major league average of 8 percent. one. Obviously, Mr. Modell changed his Not to mention the refreshments and When I first introduced legislation to mind. And why? An extraordinary sta- other concessions, which also cost address this issue in 1996, stadium bond dium deal with the State of Maryland. more in the new venues. issuance had already exceeded $1 bil- The State of Maryland (and the local According to Barron’s, the projects: lion per year. Issuance reached $1.8 bil- sports authority) provided the land on . . . cater largely to well-heeled fans, lion in 1997, a 30 percent increase from which the stadium is located, issued $87 meaning the folks who can afford to pay for 1996. The bonds issued during 1997 alone million in tax-exempt bonds (yielding seats in glassed-in luxury boxes. While the suit-and-cell-phone crowd get all the best represent a federal taxpayer subsidy of interest savings of approximately $60 seats, the average taxpayer is cosigned to approximately $300 million over 10 million over a 30-year period as com- ‘‘cheap seats’’ in nosebleed land or, more years. It seems safe to predict that sta- pared to taxable bonds), and contrib- often, to following his favorite team on tele- dium bond issuance continued to in- uted $30 million in cash and $64 million vision. crease in 1998. January 19, 1999 CONGRESSIONAL RECORD — SENATE S677 In closing, one note about implemen- ‘‘(A) 5 percent of such proceeds, or (i) the amount of the refunding bond does tation of this legislation, should it be ‘‘(B) $5,000,000. not exceed the outstanding principal amount enacted. It might be considered unfair ‘‘(2) BOND NOT TREATED AS A QUALIFIED of the refunded bond, that some teams have new taxpayer- BOND.—For purposes of this title, any bond (ii) the average maturity date of the issue described in paragraph (1) shall not be a of which the refunding bond is a part is not subsidized sports facilities, while other qualified bond. later than the average maturity date of the teams do not, all due to the arbitrary ‘‘(3) PROFESSIONAL SPORTS FACILITIES.—For bonds to be refunded by such issue, and effective date of a change in the tax purposes of this subsection— (iii) the net proceeds of the refunding bond law. After all, why should some team ‘‘(A) IN GENERAL.—The term ‘professional are used to redeem the refunded bond not owners be rewarded with a stadium sports facilities’ means real property or re- later than 90 days after the date of the subsidy while those owners who were lated improvements used for professional issuance of the refunding bond. reluctant to threaten relocation or to sports exhibitions, games, or training, re- For purposes of clause (ii), average maturity exploit unwarranted tax benefits do gardless if the admission of the public or shall be determined in accordance with sec- without? Congress could certainly pro- press is allowed or paid. tion 147(b)(2)(A) of the Internal Revenue ‘‘(B) USE FOR PROFESSIONAL SPORTS.—Any Code of 1986. vide appropriate transition rules—as it use of facilities which generates a direct or did in the 1986 Act when it first shut (B) QUALIFIED BOND.—For purposes of sub- indirect monetary benefit (other than reim- paragraph (A), the term ‘‘qualified bond’’ down tax-exempt stadium financing— bursement for out-of pocket expenses) for a means any tax-exempt bond to finance a pro- to allow these latter teams stadium person who uses such facilities for profes- fessional sports facility (as defined in section subsidies. sional sports exhibitions, games, or training 141(e)(3) of such Code, as added by subsection What is clear is that we have got to shall be treated as a use described in sub- (a)) issued before the date of enactment of do something about the explosion in paragraph (A). this Act. tax-subsidized stadium construction, if ‘‘(4) ANTI-ABUSE REGULATIONS.—The Sec- not through this legislation, then retary shall prescribe such regulations as By Mr. INOUYE (for himself and may be appropriate to carry out the purposes through some other similar means. Mr. AKAKA): of this subsection, including such regula- S. 225. A bill to provide housing as- Perhaps Congress should consider some tions as may be appropriate to prevent form of excise tax, or some limitation avoidance of such purposes through related sistance to Native Hawaiians; to the on use of bonds to situations that do persons, use of related facilities or multiuse Committee on Indian Affairs. not involve a relocating team. We complexes, or otherwise.’’ THE NATIVE AMERICAN HOUSING ASSISTANCE could also consider requiring that sta- (b) EFFECTIVE DATE.— AND SELF-DETERMINATION ACT AMENDMENTS dium bonds be repaid by stadium reve- (1) IN GENERAL.—Except as provided in Mr. INOUYE. Mr. President, I rise nues—or at the very least we could re- paragraphs (2), (3), and (5), the amendments today to introduce a measure which examine current law, which effectively made by this section shall apply to bonds passed in the Senate toward the close prohibits such a use of stadium reve- issued on or after the date of enactment of of the 105th session of the Congress to nues. Or, we could consider tightening this Act. amend the Native American Housing (2) EXCEPTION FOR CONSTRUCTION, BINDING Assistance and Self-Determination Act the prohibition on the use of tax-ex- AGREEMENTS, OR APPROVED PROJECTS.—The empt bonds to finance luxury skyboxes amendments made by this section shall not to provide Federal housing assistance so that it cannot be so easily cir- apply to bonds— to address the serious unmet housing cumvented. (A) the proceeds of which are used for— needs of Native Hawaiians. The STADIA bill would save about (i) the construction or rehabilitation of a Mr. President, the primary objective $50 million a year now spent to sub- facility— of this measure is to enable Native Ha- sidize professional sports stadiums. (I) if such construction or rehabilitation waiians who are eligible to reside on The question for Congress is should we began before June 14, 1996, and was com- the Hawaiian Home Lands to have ac- subsidize the commercial pursuits of pleted on or after such date, or (II) if a State or political subdivision cess to federal housing assistance that wealthy team owners, encourage esca- thereof has entered into a binding contract is currently provided to other eligible lating player salaries, and underwrite before June 14, 1996, that requires the incur- low-income American families based bidding wars among cities seeking or rence of significant expenditures for such upon documented need. fighting to keep professional sports construction or rehabilitation, and some of In 1920, with the enactment of Hawai- teams, or would our scarce resources be such expenditures are incurred on or after ian Homes Commission Act, the United put to better use? To my mind, this is such date; or States set aside approximately 200,000 not a difficult choice. (ii) the acquisition of a facility pursuant to acres of public land that had been Mr. President, I ask unanimous con- a binding contract entered into by a State or ceded to the United States in what was political subdivision thereof before June 14, sent that the bill be printed in the 1996, and then the Territory of Hawaii to estab- RECORD. (B) which are the subject of an official ac- lish a permanent homeland for the na- There being no objection, the bill was tion taken by relevant government officials tive people of Hawaii, based upon find- ordered to be printed in the RECORD, as before June 14, 1996— ings of the Congress that Native Ha- follows: (i) approving the issuance of such bonds, or waiians were a landless people and a S. 224 (ii) approving the submission of the ap- ‘‘dying’’ people. The Secretary of the Be it enacted by the Senate and House of proval of such issuance to a voter referen- Interior, Franklin Lane, likened the re- Representatives of the United States of America dum. lationship between the United States in Congress assembled, (3) EXCEPTION FOR FINAL BOND RESOLU- TIONS.—The amendments made by this sec- and Native Hawaiians to the guardian- SECTION 1. SHORT TITLE. ward relationship that then existed be- This Act may be cited as the ‘‘Stop Tax- tion shall not apply to bonds the proceeds of Exempt Arena Debt Issuance Act’’. which are used for the construction or reha- tween the United States and American SEC. 2. TREATMENT OF TAX-EXEMPT FINANCING bilitation of a facility if a State or political Indians. OF PROFESSIONAL SPORTS FACILI- subdivision thereof has completed all nec- As a condition of its admission into TIES. essary governmental approvals for the the Union of States in 1959, the United (a) IN GENERAL.—Section 141 of the Inter- issuance of such bonds before June 14, 1996. States transferred title to the 200,000 nal Revenue Code of 1986 (defining private (4) SIGNIFICANT EXPENDITURES.—For pur- acres of land to the State of Hawaii poses of paragraph (2)(A)(i)(II), the term activity bond and qualified bond) is amended with the requirement that the lands be by redesignating subsection (e) as subsection ‘‘significant expenditures’’ means expendi- (f) and by inserting after subsection (d) the tures equal to or exceeding 10 percent of the held ‘‘in public trust’’ for ‘‘the better- following new subsection: reasonably anticipated cost of the construc- ment of the conditions of Native Ha- ‘‘(e) CERTAIN ISSUES USED FOR PROFES- tion or rehabilitation of the facility in- waiians, as defined in the Hawaiian SIONAL SPORTS FACILITIES TREATED AS PRI- volved. Homes Commission Act of 1920’’. The VATE ACTIVITY BONDS.— (5) EXCEPTION FOR CERTAIN CURRENT Hawaii Admissions Act also required ‘‘(1) IN GENERAL.—For purposes of this REFUNDINGS.— that the Hawaii State Constitution title, the term ‘private activity bond’ in- (A) IN GENERAL.—The amendments made provide for the assumption by the new cludes any bond issued as part of an issue if by this section shall not apply to any bond the amount of the proceeds of the issue the proceeds of which are used exclusively to State of a trust responsibility for the which are to be used (directly or indirectly) refund a qualified bond (or a bond which is a lands. The lands are now administered to provide professional sports facilities ex- part of a series of refundings of a qualified by a State agency, the Department of ceeds the lesser of— bond) if— Hawaiian Home Lands. S678 CONGRESSIONAL RECORD — SENATE January 19, 1999 However, similar to the responsibil- centage of overcrowding in the Native lands set aside exclusively for Native ity with which the Secretary of the In- Hawaiian population is 36 percent as Hawaiians would be discriminating on terior is charged in the administration compared to 3 percent for all other the basis of race or ethnicity. of Indian lands, the United States re- households in the United States. The Hawaiian Homes Commission tained and continues to retain the ex- Applying the HUD guidelines, 70.8 Act not only provides authority for the clusive authority to enforce the trust percent of Native Hawaiians who either assignment of home lands property to and to institute legal action against reside or who are eligible to reside on Native Hawaiians. The Act also author- the State of Hawaii for any breach of the Hawaiian home lands have incomes izes general leases to non-Hawaiians. the trust, as well as the exclusive right which fall below the median family in- At the time the Act was passed by the to consent to any actions affecting the come in the United States, and 50 per- Congress, it was anticipated that reve- lands which comprise the corpus of the cent of those Native Hawaiians have nues derived from general leases would trust and any amendments to the Ha- incomes below 30 percent of the median be sufficient to develop the necessary waiian Homes Commission Act enacted family income in the United States. infrastructure and housing on the by the legislature of the State of Ha- Also in 1995, the Hawaii State De- home lands. However, general lease waii affecting the rights of the bene- partment of Hawaiian Home Lands revenue has not proven sufficient to ficiaries under the Act. published a Beneficiary Needs Study as address infrastructure and housing Within the last several years, three a result of research conducted by an needs. recent studies have documented the independent research group. This study In recent years, as a result of litiga- housing conditions that confront Na- found that among the Native Hawaiian tion involving third-party leases of Ha- tive Hawaiians who either reside on the population, the needs of Native Hawai- waiian home lands, the United States Hawaiian home lands or who are eligi- ians eligible to reside on the Hawaiian revisited its legal position and found ble to reside on the home lands. home lands are the most severe—with that the authority contained in the Ha- In 1992, the National Commission on 95 percent of home lands applicants waiian Homes Commission Act for gen- American Indian, Alaska Native, and (16,000) in need of housing, and with eral leases to non-Hawaiians meant Native Hawaiian Housing issued its one-half of those applicant households that the land was not set aside exclu- final report to the Congress, ‘‘Building facing overcrowding and one-third pay- sively for Native Hawaiians. The non- the Future: A Blueprint for Change’’. ing more than 30 percent of their in- exclusive nature of the land set aside The Commission’s Study compared come for shelter. was thus found not to violate Constitu- housing data for Native Hawaiians Eligibility for an assignment of Ha- tional prohibitions on racial discrimi- with housing information for other waiian home lands for purposes of nation. citizens in the State of Hawaii. The housing, agricultural development or The change in the United States’ Commission found that Native Hawai- pasture land is a function of federal legal position may be further informed ians, like American Indians and Alaska law—the Hawaiian Homes Commission by the ruling of the Ninth Circuit Natives, lacked access to conventional Act of 1920. There are approximately Court of Appeals in Rice v. Cayetano, financing because of the trust status of 60,000 Native Hawaiians who would be No. 97–16095, 146 F.3d 1075 (9th Cir. 1998) in which the Appeals Court compared the Hawaiian home lands, and that Na- eligible to reside on the home lands, the special treatment of Native Hawai- tive Hawaiians had the worst housing but applying for an assignment of a ians to the special treatment of Indians conditions in the State of Hawaii and parcel of home lands is voluntary. Be- that the Supreme Court approved in the highest percentage of homeless- cause of the lack of resources to de- Morton v. Mancari, 417 U.S. 535 (1974) ness, representing over 30 percent of velop infrastructure (roads, access to and cited its reference to Mancari in the State’s homeless population. water and sewer and electricity) on the The Commission concluded that the home lands as required by State and Alaska Chapter, Associated Gen. Contrac- unique circumstances of Native Hawai- county laws before housing can be con- tors v. Pierce, 694 F.2d 1162 (9th Cir. 1981), in which the Circuit Court ex- ians require the enactment of new leg- structed, hundreds of Native Hawaiians pressed its finding that preferential islation to alleviate and address the se- on the waiting list have died before re- treatment that is grounded in the gov- vere housing needs of Native Hawai- ceiving an assignment of home lands. ernment’s unique obligation toward In- ians, and recommended that the Con- Once an eligible Native Hawaiian dians is a political rather than a racial gress extend to Native Hawaiians the reaches the top of the waiting list, he classification, even though racial cri- same federal housing assistance pro- or she must be able to qualify for a pri- teria may be used in defining eligi- grams that are provided to American vate home loan mortgage, because the limited Federal and State funds avail- bility. Indians and Alaska Natives under the However, the result of the United able to the Department of Hawaiian Low-Income Rental, Mutual Help, Loan States’ earlier legal position was that Home Lands have been used to develop Guarantee Program and Community Native Hawaiians who were eligible to Development Block Grant programs. infrastructure rather than the con- reside on the Hawaiian Home Lands Subsequently, the Community Devel- struction of housing. An assignment of and would have otherwise been eligible opment Block Grant program author- home lands property is in the form of a by virtue of their low-income status to ity was amended to address the hous- 99-year lease. Unless the heirs of the el- apply for Federal housing assistance ing needs of Native Hawaiians. igible Native Hawaiian qualify in their were foreclosed from participating in In 1995, the U.S. Department of Hous- own right for an assignment of home Federal housing assistance programs ing and Urban Development (HUD) lands under the provisions of the Ha- that were available to all other eligible issued a report entitled, ‘‘Housing waiian Homes Commission Act, upon families in the United States. Problems and Needs of Native Hawai- the death of the eligible Native Hawai- Mr. President, if enacted into law, ians’’. The HUD report was particu- ian, the heirs must move off the land. the measure which I introduce today larly helpful because it compared the Currently, Native Hawaiians who are will finally provide some relief and data on Native Hawaiian housing con- eligible to reside on the home lands but support to those who are in the great- ditions with housing conditions nation- who do not qualify for private mort- est need for a simple roof over their ally and with the housing conditions of gage loans do not have access to fed- heads and a place to raise their fami- American Indians and Alaska Natives. eral housing assistance programs that lies. The most alarming finding of the provide assistance to low-income fami- Mr. President, I respectfully request HUD report was that Native Hawaiians lies. This is due to the fact that for that the text of this measure be print- experience the highest percentage of many years, the federal government ed in the RECORD. housing problems in the nation—49 per- took the legal position that because There being no objection, the bill was cent—higher than even that of Amer- the government that represented the ordered to be printed in the RECORD, as ican Indians and Alaska Natives resid- Native Hawaiian people had been over- follows: ing on reservations (44 percent) and thrown in 1893 and thus there was no S. 225 substantially higher than that of all government-to-government relation- Be it enacted by the Senate and House of U.S. households (27 percent). Addition- ship with the United States, extending Representatives of the United States of America ally, the HUD study found that the per- federal housing program assistance to in Congress assembled, January 19, 1999 CONGRESSIONAL RECORD — SENATE S679 SECTION 1. SHORT TITLE. the Hawaiian Home Lands have incomes that (A) the enactment of the Hawaiian Homes This Act may be cited as the ‘‘Native fall below the median family income; and Commission Act, 1920 (42 Stat. 108 et seq.), American Housing Assistance and Self-De- (B) 50 percent of Native Hawaiians who ei- which set aside approximately 200,000 acres termination Amendments of 1999’’. ther reside or who are eligible to reside on of public lands that became known as Hawai- SEC. 2. FINDINGS. the Hawaiian Home Lands have incomes ian Home Lands in the Territory of Hawaii Congress finds that— below 30 percent of the median family in- that had been ceded to the United States for (1) the United States has undertaken a re- come; and homesteading by Native Hawaiians in order sponsibility to promote the general welfare (8) 1⁄3 of those Native Hawaiians who are el- to rehabilitate a landless and dying people; of the United States by— igible to reside on the Hawaiian Home Lands (B) the enactment of the Act entitled ‘‘An (A) employing its resources to remedy the pay more than 30 percent of their income for Act to provide for the admission of the State unsafe and unsanitary housing conditions shelter, and 1⁄2 of those Native Hawaiians of Hawaii into the Union’’, approved March and the acute shortage of decent, safe, and face overcrowding; 18, 1959 (73 Stat. 4)— sanitary dwellings for families of lower in- (9) the extraordinarily severe housing (i) by ceding to the State of Hawaii title to come; and needs of Native Hawaiians demonstrate that the public lands formerly held by the United (B) developing effective partnerships with Native Hawaiians who either reside on, or States, and mandating that those lands be governmental and private entities to accom- are eligible to reside on, Hawaiian Home held in public trust, for the betterment of plish the objectives referred to in subpara- Lands have been denied equal access to Fed- the conditions of Native Hawaiians, as that graph (A); eral low-income housing assistance programs term is defined in section 801(15) of the Na- (2) pursuant to the provisions of the Ha- available to other qualified residents of the tive American Housing Assistance and Self- waiian Homes Commission Act, 1920 (42 Stat. United States, and that a more effective Determination Act of 1996, as added by sec- 108 et seq.), the United States set aside means of addressing their housing needs tion 3 of this Act; and 200,000 acres of land in the Federal territory must be authorized; (ii) by transferring what the United States that later became the State of Hawaii in (10) consistent with the recommendations considered to be a trust responsibility for order to establish a homeland for the native the administration of Hawaiian Home Lands people of Hawaii—Native Hawaiians; of the National Commission on American In- dian, Alaska Native, and Native Hawaiian to the State of Hawaii, but retaining the au- (3) despite the intent of Congress in 1920 to thority to enforce the trust, including the address the housing needs of Native Hawai- Housing, and in order to address the continu- ing prevalence of extraordinarily severe exclusive right of the United States to con- ians through the enactment of the Hawaiian sent to any actions affecting the lands which Homes Commission Act, 1920 (42 Stat. 108 et housing needs among Native Hawaiians who either reside or are eligible to reside on the comprise the corpus of the trust and any seq.), some agencies of the Federal Govern- amendments to the Hawaiian Homes Com- ment have taken the legal position that sub- Hawaiian Home Lands, Congress finds it nec- essary to extend the Federal low-income mission Act, 1920 (42 Stat. 108 et seq.), en- sequently enacted Federal housing laws de- acted by the legislature of the State of Ha- signed to address the housing needs of all eli- housing assistance available to American In- dians and Alaska Natives under the Native waii affecting the rights of beneficiaries gible families in the United States could not under the Act; be extended to address the needs for housing American Housing Assistance and Self-De- termination Act of 1996 (25 U.S.C. 4101 et (C) the authorization of mortgage loans in- and infrastructure development on Hawaiian sured by the Federal Housing Administra- home lands (as that term is defined in sec- seq.) to those Native Hawaiians; tion for the purchase, construction, or refi- tion 801 of the Native American Housing As- (11) under the treatymaking power of the nancing of homes on Hawaiian Home Lands sistance and Self-Determination Act of 1996, United States, Congress had the authority to under the Act of June 27, 1934 (commonly re- as added by section 3 of this Act) with the re- confirm a treaty between the United States ferred to as the ‘‘National Housing Act’’ (42 sult that otherwise eligible Native Hawai- and the government that represented the Ha- Stat. 1246 et seq., chapter 847; 12 U.S.C. 1701 ians residing on the Hawaiian home lands waiian people under clause 3 of section 8 of et seq.)); have been foreclosed from participating in article I of the Constitution, the authority of (D) authorizing Native Hawaiian represen- Federal housing assistance programs avail- Congress to address matters affecting the in- tation on the National Commission on Amer- able to all other eligible families in the digenous peoples of the United States in- ican Indian, Alaska Native, and Native Ha- United States; cludes the authority to address matters af- (4) although Federal housing assistance fecting Native Hawaiians; waiian Housing under Public Law 101–235; programs have been administered on a ra- (12) through treaties, Federal statutes, and (E) the inclusion of Native Hawaiians in cially neutral basis in the State of Hawaii, rulings of the Federal courts, the United the definition under section 3764 of title 38, Native Hawaiians continue to have the States has recognized and reaffirmed that— United States Code, applicable to subchapter greatest unmet need for housing and the (A) the political status of Native Hawai- V of chapter 37 of title 38, United States highest rates of overcrowding in the United ians is comparable to that of American Indi- Code (relating to a housing loan program for States; ans and Alaska Natives; and Native American veterans); and (5) among the Native American population (B) the aboriginal, indigenous people of the (F) the enactment of the Hawaiian Home of the United States, Native Hawaiians expe- United States have— Lands Recovery Act (109 Stat. 357; 48 U.S.C. rience the highest percentage of housing (i) a continuing right to autonomy in their 491, note prec.) which establishes a process problems in the United States, as the internal affairs; and for the conveyance of Federal lands to the percentage— (ii) an ongoing right of self-determination Department of Hawaiian Homes Lands that (A) of housing problems in the Native Ha- and self-governance that has never been ex- are equivalent in value to lands acquired by waiian population is 49 percent, as compared tinguished; the United States from the Hawaiian Home to— (13) the political relationship between the Lands inventory. (i) 44 percent for American Indian and United States and the Native Hawaiian peo- SEC. 3. HOUSING ASSISTANCE. Alaska Native households in Indian country; ple has been recognized and reaffirmed by The Native American Housing Assistance and the United States as evidenced by the inclu- and Self-Determination Act of 1996 (25 U.S.C. (ii) 27 percent for all other households in sion of Native Hawaiians in— 4101 et seq.) is amended by adding at the end the United States; and (A) the Native American Programs Act of the following: (B) overcrowding in the Native Hawaiian 1974 (42 U.S.C. 2291 et seq.); ‘‘TITLE VIII—HOUSING ASSISTANCE FOR population is 36 percent as compared to 3 (B) the American Indian Religious Free- NATIVE HAWAIIANS percent for all other households in the dom Act (42 U.S.C. 1996 et seq.); ‘‘SEC. 801. DEFINITIONS. United States; (C) the National Museum of the American ‘‘In this title: (6) among the Native Hawaiian population, Indian Act (20 U.S.C. 80q et seq.); ‘‘(1) DEPARTMENT OF HAWAIIAN HOME LANDS; the needs of Native Hawaiians, as that term (D) the Native American Graves Protection DEPARTMENT.—The term ‘Department of Ha- is defined in section 801 of the Native Amer- and Repatriation Act (25 U.S.C. 3001 et seq.); waiian Home Lands’ or ‘Department’ means ican Housing Assistance and Self-Determina- (E) the National Historic Preservation Act the agency or department of the government tion Act of 1996, as added by section 3 of this (16 U.S.C. 470 et seq.); of the State of Hawaii that is responsible for Act, eligible to reside on the Hawaiian Home (F) the Native American Languages Act of the administration of the Hawaiian Homes Lands are the most severe, as— 1992 (106 Stat. 3434); Commission Act, 1920 (42 Stat. 108 et seq.). (A) the percentage of overcrowding in Na- (G) the American Indian, Alaska Native ‘‘(2) DIRECTOR.—The term ‘Director’ means tive Hawaiian households on the Hawaiian and Native Hawaiian Culture and Arts Devel- the Director of the Department of Hawaiian Home Lands is 36 percent; and opment Act (20 U.S.C. 4401 et seq.); Home Lands. (B) approximately 13,000 Native Hawaiians, (H) the Job Training Partnership Act (29 ‘‘(3) ELDERLY FAMILIES; NEAR-ELDERLY FAM- which constitute 95 percent of the Native Ha- U.S.C. 1501 et seq.); and ILIES.— waiians who are eligible to reside on the Ha- (I) the Older Americans Act of 1965 (42 ‘‘(A) IN GENERAL.—The term ‘elderly fam- waiian Home Lands, are in need of housing; U.S.C. 3001 et seq.); and ily’ or ‘near-elderly family’ means a family (7) applying the Department of Housing (14) in the area of housing, the United whose head (or his or her spouse), or whose and Urban Development guidelines— States has recognized and reaffirmed the po- sole member, is— (A) 70.8 percent of Native Hawaiians who litical relationship with the Native Hawaiian ‘‘(i) for an elderly family, an elderly per- either reside or who are eligible to reside on people through— son; or S680 CONGRESSIONAL RECORD — SENATE January 19, 1999

‘‘(ii) for a near-elderly family, a near-elder- ‘‘(2) ADMINISTRATIVE AND PLANNING EX- ‘‘(ii) a description of the estimated housing ly person. PENSES.—The administrative and planning needs for all families to be served by the De- ‘‘(B) CERTAIN FAMILIES INCLUDED.—The expenses referred to in paragraph (1) partment. term ‘elderly family’ or ‘near-elderly family’ include— ‘‘(C) FINANCIAL RESOURCES.—An operating includes— ‘‘(A) costs for salaries of individuals en- budget for the Department of Hawaiian ‘‘(i) 2 or more elderly persons or near-elder- gaged in administering and managing afford- Home Lands, in a form prescribed by the ly persons, as the case may be, living to- able housing activities assisted with grant Secretary, that includes— gether; and amounts provided under this title; and ‘‘(i) an identification and a description of ‘‘(ii) 1 or more persons described in clause ‘‘(B) expenses incurred in preparing a hous- the financial resources reasonably available (i) living with 1 or more persons determined ing plan under section 803. to the Department to carry out the purposes under the housing plan to be essential to ‘‘(e) PUBLIC-PRIVATE PARTNERSHIPS.—The of this title, including an explanation of the their care or well-being. Director shall make all reasonable efforts, manner in which amounts made available ‘‘(4) HAWAIIAN HOME LANDS.—The term ‘Ha- consistent with the purposes of this title, to will be used to leverage additional resources; maximize participation by the private sec- waiian Home Lands’ means lands that— and tor, including nonprofit organizations and ‘‘(A) have the status as Hawaiian home ‘‘(ii) the uses to which the resources de- for-profit entities, in implementing a hous- lands under section 204 of the Hawaiian scribed in clause (i) will be committed, ing plan that has been approved by the Sec- Homes Commission Act (42 Stat. 110); or including— ‘‘(B) are acquired pursuant to that Act. retary under section 803. ‘‘(f) APPLICABILITY OF OTHER PROVISIONS.— ‘‘(I) eligible and required affordable hous- ‘‘(5) HOUSING AREA.—The term ‘housing ‘‘(1) IN GENERAL.—The Secretary shall be ing activities; and area’ means an area of Hawaiian Home guided by the relevant program require- ‘‘(II) administrative expenses. Lands with respect to which the Department ments of titles I, II, and IV in the implemen- ‘‘(D) AFFORDABLE HOUSING RESOURCES.—A of Hawaiian Home Lands is authorized to tation of housing assistance programs for statement of the affordable housing re- provide assistance for affordable housing Native Hawaiians under this title. sources currently available at the time of under this Act. ‘‘(2) EXCEPTION.—The Secretary may make the submittal of the plan and to be made ‘‘(6) HOUSING ENTITY.—The term ‘housing exceptions to, or modifications of, program available during the period covered by the entity’ means the Department of Hawaiian requirements for Native American housing plan, including— Home Lands. assistance set forth in titles I, II, and IV as ‘‘(i) a description of the significant charac- ‘‘(7) HOUSING PLAN.—The term ‘housing necessary and appropriate to meet the teristics of the housing market in the State plan’ means a plan developed by the Depart- unique situation and housing needs of Native of Hawaii, including the availability of hous- ment of Hawaiian Home Lands. Hawaiians. ing from other public sources, private mar- ‘‘(8) MEDIAN INCOME.—The term ‘median in- ‘‘SEC. 803. HOUSING PLAN. ket housing; and come’ means, with respect to an area that is ‘‘(ii) the manner in which the characteris- a Hawaiian housing area, the greater of— ‘‘(a) PLAN SUBMISSION.—The Secretary shall— tics referred to in clause (i) influence the de- ‘‘(A) the median income for the Hawaiian ‘‘(1) require the Director to submit a hous- cision of the Department of Hawaiian Home housing area, which shall be determined by ing plan under this section for each fiscal Lands to use grant amounts to be provided the Secretary; or year; and under this title for— ‘‘(B) the median income for the State of ‘‘(2) provide for the review of each plan ‘‘(I) rental assistance; Hawaii. submitted under paragraph (1). ‘‘(II) the production of new units; ‘‘(9) NATIVE HAWAIIAN.—The term ‘Native ‘‘(b) 5-YEAR PLAN.—Each housing plan ‘‘(III) the acquisition of existing units; or Hawaiian’ has the meaning given the term under this section shall— ‘‘(IV) the rehabilitation of units; ‘Native Hawaiian’ in section 201 of the Ha- ‘‘(1) be in a form prescribed by the Sec- ‘‘(iii) a description of the structure, coordi- waiian Homes Commission Act, 1920 (42 Stat. retary; and nation, and means of cooperation between 108 et seq.). ‘‘(2) contain, with respect to the 5-year pe- the Department of Hawaiian Home Lands ‘‘SEC. 802. BLOCK GRANTS FOR AFFORDABLE riod beginning with the fiscal year for which and any other governmental entities in the HOUSING ACTIVITIES. the plan is submitted, the following informa- development, submission, or implementation ‘‘(a) GRANT AUTHORITY.—For each fiscal tion: of housing plans, including a description of— year, the Secretary shall (to the extent ‘‘(A) MISSION STATEMENT.—A general state- ‘‘(I) the involvement of private, public, and amounts are made available to carry out this nonprofit organizations and institutions; title) make a grant under this title to the ment of the mission of the Department of ‘‘(II) the use of loan guarantees under sec- Department of Hawaiian Home Lands to Hawaiian Home Lands to serve the needs of tion 184A of the Housing and Community De- carry out affordable housing activities for the low-income families to be served by the velopment Act of 1992; and Native Hawaiian families on or near Hawai- Department. ‘‘(III) other housing assistance provided by ian Home Lands. ‘‘(B) GOAL AND OBJECTIVES.—A statement ‘‘(b) PLAN REQUIREMENT.— of the goals and objectives of the Depart- the United States, including loans, grants, ‘‘(1) IN GENERAL.—The Secretary may make ment of Hawaiian Home Lands to enable the and mortgage insurance; a grant under this title to the Department of Department to serve the needs identified in ‘‘(iv) a description of the manner in which Hawaiian Home Lands for a fiscal year only subparagraph (A) during the period. the plan will address the needs identified if— ‘‘(C) ACTIVITIES PLANS.—An overview of the pursuant to subparagraph (C); ‘‘(A) the Director has submitted to the activities planned during the period includ- ‘‘(v) a description of— Secretary a housing plan for that fiscal year; ing an analysis of the manner in which the ‘‘(I) any existing or anticipated home- and activities will enable the Department to ownership programs and rental programs to ‘‘(B) the Secretary has determined under meet its mission, goals, and objectives. be carried out during the period covered by section 804 that the housing plan complies ‘‘(c) 1-YEAR PLAN.—A housing plan under the plan; and with the requirements of section 803. this section shall— ‘‘(II) the requirements and assistance ‘‘(2) WAIVER.—The Secretary may waive ‘‘(1) be in a form prescribed by the Sec- available under the programs referred to in the applicability of the requirements under retary; and subclause (I); paragraph (1), in part, if the Secretary finds ‘‘(2) contain the following information re- ‘‘(vi) a description of— that the Department of Hawaiian Home lating to the fiscal year for which the assist- ‘‘(I) any existing or anticipated housing re- Lands has not complied or cannot comply ance under this title is to be made available: habilitation programs necessary to ensure with those requirements due to cir- ‘‘(A) GOALS AND OBJECTIVES.—A statement the long-term viability of the housing to be cumstances beyond the control of the De- of the goals and objectives to be accom- carried out during the period covered by the partment of Hawaiian Home Lands. plished during the period covered by the plan; and ‘‘(c) USE OF AFFORDABLE HOUSING ACTIVI- plan. ‘‘(II) the requirements and assistance TIES UNDER PLAN.—Except as provided in ‘‘(B) STATEMENT OF NEEDS.—A statement of available under the programs referred to in subsection (e), amounts provided under a the housing needs of the low-income families subclause (I); grant under this section may be used only served by the Department and the means by ‘‘(vii) a description of— for affordable housing activities under this which those needs will be addressed during ‘‘(I) all other existing or anticipated hous- title that are consistent with a housing plan the period covered by the plan, including— ing assistance provided by the Department of approved under section 804. ‘‘(i) a description of the estimated housing Hawaiian Home Lands during the period cov- ‘‘(d) ADMINISTRATIVE EXPENSES.— needs and the need for assistance for the low- ered by the plan, including— ‘‘(1) IN GENERAL.—The Secretary shall, by income families to be served by the Depart- ‘‘(aa) transitional housing; regulation, authorize the Department of Ha- ment, including a description of the manner ‘‘(bb) homeless housing; waiian Home Lands to use a percentage of in which the geographical distribution of as- ‘‘(cc) college housing; and any grant amounts received under this title sistance is consistent with— ‘‘(dd) supportive services housing; and for any reasonable administrative and plan- ‘‘(I) the geographical needs of those fami- ‘‘(II) the requirements and assistance ning expenses of the Department relating to lies; and available under such programs; carrying out this title and activities assisted ‘‘(II) needs for various categories of hous- ‘‘(viii)(I) a description of any housing to be with those amounts. ing assistance; and demolished or disposed of; January 19, 1999 CONGRESSIONAL RECORD — SENATE S681 ‘‘(II) a timetable for that demolition or origin, religion, sex, familial status, or dis- information regarding such changes as may disposition; and ability. be necessary to update the plan previously ‘‘(III) any other information required by ‘‘(e) USE OF NONPROFIT ORGANIZATIONS.—As submitted. the Secretary with respect to that demoli- a condition of receiving grant amounts under ‘‘(2) COMPLETE PLANS.—The Director shall tion or disposition; this title, the Department of Hawaiian Home submit a complete plan under section 803 not ‘‘(ix) a description of the manner in which Lands shall, to the extent practicable, pro- later than 4 years after submitting an initial the Department of Hawaiian Home Lands vide for private nonprofit organizations ex- plan under that section, and not less fre- will coordinate with welfare agencies in the perienced in the planning and development quently than every 4 years thereafter. State of Hawaii to ensure that residents of of affordable housing for Native Hawaiians ‘‘(e) EFFECTIVE DATE.—This section and the affordable housing will be provided with to carry out affordable housing activities section 803 shall take effect on the date pro- access to resources to assist in obtaining em- with those grant amounts. vided by the Secretary pursuant to section ployment and achieving self-sufficiency; ‘‘SEC. 804. REVIEW OF PLANS. 807(a) to provide for timely submission and ‘‘(x) a description of the requirements es- ‘‘(a) REVIEW AND NOTICE.— review of the housing plan as necessary for tablished by the Department of Hawaiian ‘‘(1) REVIEW.— the provision of assistance under this title Home Lands to— ‘‘(A) IN GENERAL.—The Secretary shall con- for fiscal year 2000. ‘‘(I) promote the safety of residents of the duct a review of a housing plan submitted to ‘‘SEC. 805. TREATMENT OF PROGRAM INCOME affordable housing; the Secretary under section 803 to ensure AND LABOR STANDARDS. ‘‘(II) facilitate the undertaking of crime that the plan complies with the require- ‘‘(a) PROGRAM INCOME.— prevention measures; ments of that section. ‘‘(1) AUTHORITY TO RETAIN.—The Depart- ‘‘(III) allow resident input and involve- ‘‘(B) LIMITATION.—The Secretary shall have ment of Hawaiian Home Lands may retain ment, including the establishment of resi- the discretion to review a plan referred to in any program income that is realized from dent organizations; and subparagraph (A) only to the extent that the any grant amounts received by the Depart- ‘‘(IV) allow for the coordination of crime Secretary considers that the review is nec- ment under this title if— prevention activities between the Depart- essary. ‘‘(A) that income was realized after the ini- ment and local law enforcement officials; ‘‘(2) NOTICE.— tial disbursement of the grant amounts re- and ‘‘(A) IN GENERAL.—Not later than 60 days ceived by the Department; and ‘‘(xi) a description of the entities that will ‘‘(B) the Director agrees to use the pro- carry out the activities under the plan, in- after receiving a plan under section 803, the Secretary shall notify the Director of the gram income for affordable housing activi- cluding the organizational capacity and key ties in accordance with the provisions of this personnel of the entities. Department of Hawaiian Home Lands wheth- er the plan complies with the requirements title. ‘‘(E) CERTIFICATION OF COMPLIANCE.—Evi- ‘‘(2) PROHIBITION OF REDUCTION OF GRANT.— dence of compliance that shall include, as under that section. The Secretary may not reduce the grant appropriate— ‘‘(B) EFFECT OF FAILURE OF SECRETARY TO amount for the Department of Hawaiian ‘‘(i) a certification that the Department of TAKE ACTION.—For purposes of this title, if Home Lands based solely on— Hawaiian Home Lands will comply with— the Secretary does not notify the Director, ‘‘(A) whether the Department retains pro- ‘‘(I) title VI of the Civil Rights Act of 1964 as required under this subsection and sub- gram income under paragraph (1); or (42 U.S.C. 2000d et seq.) or with title VIII of section (b), upon the expiration of the 60-day ‘‘(B) the amount of any such program in- the Civil Rights Act of 1968 (42 U.S.C. 3601 et period described in subparagraph (A)— come retained. seq.) in carrying out this title, to the extent ‘‘(i) the plan shall be considered to have ‘‘(3) EXCLUSION OF AMOUNTS.—The Sec- that such title is applicable; and been determined to comply with the require- retary may, by regulation, exclude from con- ‘‘(II) other applicable Federal statutes; ments under section 803; and sideration as program income any amounts ‘‘(ii) a certification that the Department ‘‘(ii) the Director shall be considered to will require adequate insurance coverage for have been notified of compliance. determined to be so small that compliance housing units that are owned and operated or ‘‘(b) NOTICE OF REASONS FOR DETERMINA- with the requirements of this subsection assisted with grant amounts provided under TION OF NONCOMPLIANCE.—If the Secretary would create an unreasonable administrative this title, in compliance with such require- determines that a plan submitted under sec- burden on the Department. ments as may be established by the Sec- tion 803 does not comply with the require- ‘‘(b) LABOR STANDARDS.— retary; ments of that section, the Secretary shall ‘‘(1) IN GENERAL.—Any contract or agree- ‘‘(iii) a certification that policies are in ef- specify in the notice under subsection (a)— ment for assistance, sale, or lease pursuant fect and are available for review by the Sec- ‘‘(1) the reasons for noncompliance; and to this title shall contain— retary and the public governing the eligi- ‘‘(2) any modifications necessary for the ‘‘(A) a provision requiring that an amount bility, admission, and occupancy of families plan to meet the requirements of section 803. not less than the wages prevailing in the lo- for housing assisted with grant amounts pro- ‘‘(c) REVIEW.— cality, as determined or adopted (subsequent vided under this title; ‘‘(1) IN GENERAL.—After the Director of the to a determination under applicable State or ‘‘(iv) a certification that policies are in ef- Department of Hawaiian Home Lands sub- local law) by the Secretary, shall be paid to fect and are available for review by the Sec- mits a housing plan under section 803, or any all architects, technical engineers, retary and the public governing rents amendment or modification to the plan to draftsmen, technicians employed in the de- charged, including the methods by which the Secretary, to the extent that the Sec- velopment and all maintenance, and laborers such rents or homebuyer payments are de- retary considers such action to be necessary and mechanics employed in the operation, of termined, for housing assisted with grant to make a determination under this sub- the affordable housing project involved; and amounts provided under this title; and section, the Secretary shall review the plan ‘‘(B) a provision that an amount not less ‘‘(v) a certification that policies are in ef- (including any amendments or modifications than the wages prevailing in the locality, as fect and are available for review by the Sec- thereto) to determine whether the contents predetermined by the Secretary of Labor retary and the public governing the manage- of the plan— pursuant to the Act commonly known as the ment and maintenance of housing assisted ‘‘(A) set forth the information required by ‘Davis-Bacon Act’ (46 Stat. 1494, chapter 411; with grant amounts provided under this section 803 to be contained in the housing 40 U.S.C. 276a et seq.) shall be paid to all la- title. plan; borers and mechanics employed in the devel- ‘‘(d) APPLICABILITY OF CIVIL RIGHTS STAT- ‘‘(B) are consistent with information and opment of the affordable housing involved. UTES.— data available to the Secretary; and ‘‘(2) EXCEPTIONS.—Paragraph (1) and provi- ‘‘(1) IN GENERAL.—To the extent that the ‘‘(C) are not prohibited by or inconsistent sions relating to wages required under para- requirements of title VI of the Civil Rights with any provision of this Act or any other graph (1) in any contract or agreement for Act of 1964 (42 U.S.C. 2000d et seq.) or of title applicable law. assistance, sale, or lease under this title, VIII of the Civil Rights Act of 1968 (42 U.S.C. ‘‘(2) INCOMPLETE PLANS.—If the Secretary shall not apply to any individual who per- 3601 et seq.) apply to assistance provided determines under this subsection that any of forms the services for which the individual under this title, nothing in the requirements the appropriate certifications required under volunteered and who is not otherwise em- concerning discrimination on the basis of section 803(c)(2)(E) are not included in a ployed at any time in the construction work race shall be construed to prevent the provi- plan, the plan shall be considered to be in- and received no compensation or is paid ex- sion of assistance under this title— complete. penses, reasonable benefits, or a nominal fee ‘‘(A) to the Department of Hawaiian Home ‘‘(d) UPDATES TO PLAN.— for those services. Lands on the basis that the Department ‘‘(1) IN GENERAL.—Subject to paragraph (2), ‘‘SEC. 806. ENVIRONMENTAL REVIEW. served Native Hawaiians; or after a plan under section 803 has been sub- ‘‘(a) IN GENERAL.— ‘‘(B) to an eligible family on the basis that mitted for a fiscal year, the head of the De- ‘‘(1) RELEASE OF FUNDS.— the family is a Native Hawaiian family. partment of Hawaiian Home Lands may com- ‘‘(A) IN GENERAL.—The Secretary may ‘‘(2) CIVIL RIGHTS.—Program eligibility ply with the provisions of that section for carry out the alternative environmental pro- under this title may be restricted to Native any succeeding fiscal year (with respect to tection procedures described in subparagraph Hawaiians. Subject to the preceding sen- information included for the 5-year period (B) in order to ensure— tence, no person may be discriminated under section 803(b) or for the 1-year period ‘‘(i) that the policies of the National Envi- against on the basis of race, color, national under section 803(c)) by submitting only such ronmental Policy Act of 1969 (42 U.S.C. 4321 S682 CONGRESSIONAL RECORD — SENATE January 19, 1999 et seq.) and other provisions of law that fur- and the Director to accept the jurisdiction of provided through affordable housing activi- ther the purposes of such Act (as specified in the Federal courts for the purpose of enforce- ties assisted with grant amounts provided regulations issued by the Secretary) are ment of the responsibilities of the Director under this title to be provided, to the extent most effectively implemented in connection of the Department of Hawaiian Home Lands practicable, to families that are eligible to with the expenditure of grant amounts pro- as such an official. reside on the Hawaiian Home Lands. vided under this title; and ‘‘SEC. 807. REGULATIONS. ‘‘(ii) APPLICATION.—In any case in which a ‘‘(ii) to the public undiminished protection ‘‘The Secretary shall issue final regula- housing plan provides for preference de- of the environment. tions necessary to carry out this title not scribed in clause (i), the Director shall en- ‘‘(B) ALTERNATIVE ENVIRONMENTAL PROTEC- later than October 1, 1999. sure that housing activities that are assisted TION PROCEDURE.—In lieu of applying envi- ‘‘SEC. 808. EFFECTIVE DATE. with grant amounts under this title are sub- ronmental protection procedures otherwise ‘‘Except as otherwise expressly provided in ject to that preference. applicable, the Secretary may by regulation this title, this title shall take effect on Octo- ‘‘(E) USE OF NONPROFIT ORGANIZATIONS.—As provide for the release of funds for specific ber 1, 1999. a condition of receiving grant amounts under projects to the Department of Hawaiian this title, the Department of Hawaiian Home ‘‘SEC. 809. AFFORDABLE HOUSING ACTIVITIES. Home Lands if the Director of the Depart- Lands, shall to the extent practicable, pro- ‘‘(a) NATIONAL OBJECTIVES AND ELIGIBLE ment assumes all of the responsibilities for vide for private nonprofit organizations ex- FAMILIES.— environmental review, decisionmaking, and perienced in the planning and development ‘‘(1) PRIMARY OBJECTIVE.—The national ob- action under the National Environmental of affordable housing for Native Hawaiians jectives of this title are— Policy Act of 1969 (42 U.S.C. 4321 et seq.), and to carry out affordable housing activities ‘‘(A) to assist and promote affordable hous- such other provisions of law as the regula- with those grant amounts. ing activities to develop, maintain, and oper- tions of the Secretary specify, that would ate affordable housing in safe and healthy ‘‘SEC. 810. ELIGIBLE AFFORDABLE HOUSING AC- apply to the Secretary were the Secretary to TIVITIES. environments for occupancy by low-income undertake those projects as Federal projects. ‘‘(a) IN GENERAL.—Affordable housing ac- Native Hawaiian families; ‘‘(2) REGULATIONS.— tivities under this section are activities con- ‘‘(B) to ensure better access to private ‘‘(A) IN GENERAL.—The Secretary shall ducted in accordance with the requirements issue regulations to carry out this section mortgage markets and to promote self-suffi- of section 811 to— only after consultation with the Council on ciency of low-income Native Hawaiian fami- ‘‘(1) develop or to support affordable hous- Environmental Quality. lies; ing for rental or homeownership; or ‘‘(C) to coordinate activities to provide ‘‘(B) CONTENTS.—The regulations issued ‘‘(2) provide housing services with respect under this paragraph shall— housing for low-income Native Hawaiian to affordable housing, through the activities ‘‘(i) provide for the monitoring of the envi- families with Federal, State and local activi- described in subsection (b). ronmental reviews performed under this sec- ties to further economic and community de- ‘‘(b) ACTIVITIES.—The activities described tion; velopment; in this subsection are the following: ‘‘(ii) in the discretion of the Secretary, fa- ‘‘(D) to plan for and integrate infrastruc- ‘‘(1) DEVELOPMENT.—The acquisition, new cilitate training for the performance of such ture resources on the Hawaiian Home Lands construction, reconstruction, or moderate or reviews; and with housing development; and substantial rehabilitation of affordable hous- ‘‘(iii) provide for the suspension or termi- ‘‘(E) to— ing, which may include— nation of the assumption of responsibilities ‘‘(i) promote the development of private ‘‘(A) real property acquisition; under this section. capital markets; and ‘‘(B) site improvement; ‘‘(3) EFFECT ON ASSUMED RESPONSIBILITY.— ‘‘(ii) allow the markets referred to in ‘‘(C) the development of utilities and util- The duty of the Secretary under paragraph clause (i) to operate and grow, thereby bene- ity services; (2)(B) shall not be construed to limit or re- fiting Native Hawaiian communities. ‘‘(D) conversion; duce any responsibility assumed by the De- ‘‘(2) ELIGIBLE FAMILIES.— ‘‘(E) demolition; partment of Hawaiian Home Lands for grant ‘‘(A) IN GENERAL.—Except as provided ‘‘(F) financing; amounts with respect to any specific release under subparagraph (B), assistance for eligi- ‘‘(G) administration and planning; and of funds. ble housing activities under this title shall ‘‘(H) other related activities. ‘‘(b) PROCEDURE.— be limited to low-income Native Hawaiian ‘‘(2) HOUSING SERVICES.—The provision of ‘‘(1) IN GENERAL.—The Secretary shall au- families. housing-related services for affordable hous- thorize the release of funds subject to the ‘‘(B) EXCEPTION TO LOW-INCOME REQUIRE- ing, including— procedures under this section only if, not MENT.— ‘‘(A) housing counseling in connection with less than 15 days before that approval and ‘‘(i) IN GENERAL.—The Director may pro- rental or homeownership assistance; before any commitment of funds to such vide assistance for homeownership activities ‘‘(B) the establishment and support of resi- projects, the Director of the Department of under— dent organizations and resident management Hawaiian Home Lands submits to the Sec- ‘‘(I) section 810(b); corporations; retary a request for such release accom- ‘‘(II) model activities under section 810(f); ‘‘(C) energy auditing; panied by a certification that meets the re- or ‘‘(D) activities related to the provisions of quirements of subsection (c). ‘‘(III) loan guarantee activities under sec- self-sufficiency and other services; and ‘‘(2) EFFECT OF APPROVAL.—The approval of tion 184A of the Housing and Community De- ‘‘(E) other services related to assisting the Secretary of a certification described in velopment Act of 1992 to Native Hawaiian owners, tenants, contractors, and other enti- paragraph (1) shall be deemed to satisfy the families who are not low-income families, to ties participating or seeking to participate responsibilities of the Secretary under the the extent that the Secretary approves the in other housing activities assisted pursuant National Environmental Policy Act of 1969 activities under that section to address a to this section. (42 U.S.C. 4321 et seq.) and such other provi- need for housing for those families that can- ‘‘(3) HOUSING MANAGEMENT SERVICES.—The sions of law as the regulations of the Sec- not be reasonably met without that assist- provision of management services for afford- retary specify to the extent that those re- ance. able housing, including— sponsibilities relate to the releases of funds ‘‘(ii) LIMITATIONS.—The Secretary shall es- ‘‘(A) the preparation of work specifica- for projects that are covered by that certifi- tablish limitations on the amount of assist- tions; cation. ance that may be provided under this title ‘‘(B) loan processing; ‘‘(c) CERTIFICATION.—A certification under for activities for families that are not low- ‘‘(C) inspections; the procedures under this section shall— income families. ‘‘(D) tenant selection; ‘‘(1) be in a form acceptable to the Sec- ‘‘(C) OTHER FAMILIES.—Notwithstanding ‘‘(E) management of tenant-based rental retary; paragraph (1), the Director may provide assistance; and ‘‘(2) be executed by the Director of the De- housing or housing assistance provided ‘‘(F) management of affordable housing partment of Hawaiian Home Lands; through affordable housing activities as- projects. ‘‘(3) specify that the Department of Hawai- sisted with grant amounts under this title to ‘‘(4) CRIME PREVENTION AND SAFETY ACTIVI- ian Home Lands has fully carried out its re- a family that is not composed of Native Ha- TIES.—The provision of safety, security, and sponsibilities as described under subsection waiians if— law enforcement measures and activities ap- (a); and ‘‘(i) the Department determines that the propriate to protect residents of affordable ‘‘(4) specify that the Director— presence of the family in the housing in- housing from crime. ‘‘(A) consents to assume the status of a re- volved is essential to the well-being of Na- ‘‘(5) MODEL ACTIVITIES.—Housing activities sponsible Federal official under the National tive Hawaiian families; and under model programs that are— Environmental Policy Act of 1969 (42 U.S.C. ‘‘(ii) the need for housing for the family ‘‘(A) designed to carry out the purposes of 4321 et seq.) and each provision of law speci- cannot be reasonably met without the assist- this title; and fied in regulations issued by the Secretary to ance. ‘‘(B) specifically approved by the Secretary the extent that those laws apply by reason of ‘‘(D) PREFERENCE.— as appropriate for the purpose referred to in subsection (a); and ‘‘(i) IN GENERAL.—A housing plan submit- subparagraph (A). ‘‘(B) is authorized and consents on behalf ted under section 803 may authorize a pref- ‘‘SEC. 811. PROGRAM REQUIREMENTS. of the Department of Hawaiian Home Lands erence, for housing or housing assistance ‘‘(a) RENTS.— January 19, 1999 CONGRESSIONAL RECORD — SENATE S683

‘‘(1) ESTABLISHMENT.—Subject to para- ‘‘(2) each dwelling unit in the housing will ‘‘(2) are reasonably related to program eli- graph (2), as a condition to receiving grant remain affordable, according to binding com- gibility and the ability of the applicant to amounts under this title, the Director shall mitments satisfactory to the Secretary, perform the obligations of the lease; and develop written policies governing rents and for— ‘‘(3) provide for— homebuyer payments charged for dwelling ‘‘(A) the remaining useful life of the prop- ‘‘(A) the selection of tenants and home- units assisted under this title, including erty (as determined by the Secretary) with- buyers from a written waiting list in accord- methods by which such rents and homebuyer out regard to the term of the mortgage or to ance with the policies and goals set forth in payments are determined. transfer of ownership; or an applicable housing plan approved under ‘‘(2) MAXIMUM RENT.—In the case of any ‘‘(B) such other period as the Secretary de- section 803; and low-income family residing in a dwelling termines is the longest feasible period of ‘‘(B) the prompt notification in writing of unit assisted with grant amounts under this time consistent with sound economics and any rejected applicant of the grounds for title, the monthly rent or homebuyer pay- the purposes of this title, except upon a fore- that rejection. ment (as applicable) for that dwelling unit closure by a lender (or upon other transfer in ‘‘SEC. 815. REPAYMENT. may not exceed 30 percent of the monthly lieu of foreclosure) if that action— ‘‘If the Department of Hawaiian Home adjusted income of that family. ‘‘(i) recognizes any contractual or legal Lands uses grant amounts to provide afford- ‘‘(b) MAINTENANCE AND EFFICIENT OPER- rights of any public agency, nonprofit spon- able housing under activities under this title ATION.— sor, or other person or entity to take an ac- and, at any time during the useful life of the ‘‘(1) IN GENERAL.—The Director shall, using tion that would— housing, the housing does not comply with amounts of any grants received under this ‘‘(I) avoid termination of low-income af- the requirement under section 813(a)(2), the title, reserve and use for operating under fordability, in the case of foreclosure; or Secretary shall— section 810 such amounts as may be nec- ‘‘(II) transfer ownership in lieu of fore- ‘‘(1) reduce future grant payments on be- essary to provide for the continued mainte- closure; and half of the Department by an amount equal nance and efficient operation of such hous- ‘‘(ii) is not for the purpose of avoiding low- to the grant amounts used for that housing ing. income affordability restrictions, as deter- (under the authority of section 819(a)(2)); or ‘‘(2) DISPOSAL OF CERTAIN HOUSING.—This mined by the Secretary. ‘‘(2) require repayment to the Secretary of subsection may not be construed to prevent ‘‘(b) EXCEPTION.—Notwithstanding sub- any amount equal to those grant amounts. the Director, or any entity funded by the De- section (a), housing assisted pursuant to sec- ‘‘SEC. 816. ANNUAL ALLOCATION. partment, from demolishing or disposing of tion 809(a)(2)(B) shall be considered afford- ‘‘For each fiscal year, the Secretary shall housing, pursuant to regulations established able housing for purposes of this title. allocate any amounts made available for as- by the Secretary. ‘‘SEC. 814. LEASE REQUIREMENTS AND TENANT sistance under this title for the fiscal year, ‘‘(c) INSURANCE COVERAGE.—As a condition SELECTION. in accordance with the formula established to receiving grant amounts under this title, pursuant to section 817 to the Department of ‘‘(a) LEASES.—Except to the extent other- the Director shall require adequate insur- wise provided by or inconsistent with the Hawaiian Home Lands if the Department ance coverage for housing units that are laws of the State of Hawaii, in renting dwell- complies with the requirements under this owned or operated or assisted with grant title for a grant under this title. ing units in affordable housing assisted with amounts provided under this title. grant amounts provided under this title, the ‘‘SEC. 817. ALLOCATION FORMULA. ‘‘(d) ELIGIBILITY FOR ADMISSION.—As a con- ‘‘(a) ESTABLISHMENT.—The Secretary shall, dition to receiving grant amounts under this Director, owner, or manager shall use leases that— by regulation issued not later than the expi- title, the Director shall develop written poli- ration of the 6-month period beginning on ‘‘(1) do not contain unreasonable terms and cies governing the eligibility, admission, and the date of enactment of the Native Amer- conditions; occupancy of families for housing assisted ican Housing Assistance and Self-Determina- ‘‘(2) require the Director, owner, or man- with grant amounts provided under this tion Amendments of 1999, in the manner pro- ager to maintain the housing in compliance title. vided under section 807, establish a formula with applicable housing codes and quality ‘‘(e) MANAGEMENT AND MAINTENANCE.—As a to provide for the allocation of amounts standards; condition to receiving grant amounts under available for a fiscal year for block grants ‘‘(3) require the Director, owner, or man- this title, the Director shall develop policies under this title in accordance with the re- governing the management and maintenance ager to give adequate written notice of ter- quirements of this section. of housing assisted with grant amounts mination of the lease, which shall be the pe- ‘‘(b) FACTORS FOR DETERMINATION OF under this title. riod of time required under applicable State NEED.—The formula under subsection (a) ‘‘SEC. 812. TYPES OF INVESTMENTS. or local law; shall be based on factors that reflect the ‘‘(a) IN GENERAL.—Subject to section 811 ‘‘(4) specify that, with respect to any no- needs for assistance for affordable housing and an applicable housing plan approved tice of eviction or termination, notwith- activities, including— under section 803, the Director shall have— standing any State or local law, a resident ‘‘(1) the number of low-income dwelling ‘‘(1) the discretion to use grant amounts shall be informed of the opportunity, before units owned or operated at the time pursu- for affordable housing activities through the any hearing or trial, to examine any rel- ant to a contract between the Director and use of— evant documents, record, or regulations di- the Secretary; ‘‘(A) equity investments; rectly related to the eviction or termination; ‘‘(2) the extent of poverty and economic ‘‘(B) interest-bearing loans or advances; ‘‘(5) require that the Director, owner, or distress and the number of Native Hawaiian ‘‘(C) noninterest-bearing loans or advances; manager may not terminate the tenancy, families eligible to reside on the Hawaiian ‘‘(D) interest subsidies; during the term of the lease, except for seri- Home Lands; and ‘‘(E) the leveraging of private investments; ous or repeated violation of the terms and ‘‘(3) any other objectively measurable con- or conditions of the lease, violation of applica- ditions that the Secretary and the Director ‘‘(F) any other form of assistance that the ble Federal, State, or local law, or for other may specify. Secretary determines to be consistent with good cause; and ‘‘(c) OTHER FACTORS FOR CONSIDERATION.— the purposes of this title; and ‘‘(6) provide that the Director, owner, and In establishing the formula under subsection ‘‘(2) the right to establish the terms of as- manager may terminate the tenancy of a (a), the Secretary shall consider the relative sistance provided with funds referred to in resident for any activity, engaged in by the administrative capacities of the Department paragraph (1). resident, any member of the household of the of Hawaiian Home Lands and other chal- ‘‘(b) INVESTMENTS.—The Director may in- resident, or any guest or other person under lenges faced by the Department, including— vest grant amounts for the purposes of car- the control of the resident, that— ‘‘(1) geographic distribution within Hawai- rying out affordable housing activities in in- ‘‘(A) threatens the health or safety of, or ian Home Lands; and vestment securities and other obligations, as right to peaceful enjoyment of the premises ‘‘(2) technical capacity. approved by the Secretary. by, other residents or employees of the De- ‘‘(d) EFFECTIVE DATE.—This section shall ‘‘SEC. 813. LOW-INCOME REQUIREMENT AND IN- partment, owner, or manager; take effect on the date of enactment of the COME TARGETING. ‘‘(B) threatens the health or safety of, or Native American Housing Assistance and ‘‘(a) IN GENERAL.—Housing shall qualify for right to peaceful enjoyment of their prem- Self-Determination Amendments of 1999. affordable housing for purposes of this title ises by, persons residing in the immediate vi- ‘‘SEC. 818. REMEDIES FOR NONCOMPLIANCE. only if— cinity of the premises; or ‘‘(a) ACTIONS BY SECRETARY AFFECTING ‘‘(1) each dwelling unit in the housing— ‘‘(C) is criminal activity (including drug- GRANT AMOUNTS.— ‘‘(A) in the case of rental housing, is made related criminal activity) on or off the prem- ‘‘(1) IN GENERAL.—Except as provided in available for occupancy only by a family ises. subsection (b), if the Secretary finds after that is a low-income family at the time of ‘‘(b) TENANT OR HOMEBUYER SELECTION.—As reasonable notice and opportunity for a the initial occupancy of that family of that a condition to receiving grant amounts hearing that the Department of Hawaiian unit; and under this title, the Director shall adopt and Home Lands has failed to comply substan- ‘‘(B) in the case of housing for homeowner- use written tenant and homebuyer selection tially with any provision of this title, the ship, is made available for purchase only by policies and criteria that— Secretary shall— a family that is a low-income family at the ‘‘(1) are consistent with the purpose of pro- ‘‘(A) terminate payments under this title time of purchase; and viding housing for low-income families; to the Department; S684 CONGRESSIONAL RECORD — SENATE January 19, 1999

‘‘(B) reduce payments under this title to ‘‘(ii) FINDINGS OF FACT.—If supported by ‘‘(b) CONTENT.—Each report submitted the Department by an amount equal to the substantial evidence on the record consid- under this section for a fiscal year shall— amount of such payments that were not ex- ered as a whole, the findings of fact by the ‘‘(1) describe the use of grant amounts pro- pended in accordance with this title; or Secretary shall be conclusive. vided to the Department of Hawaiian Home ‘‘(C) limit the availability of payments ‘‘(iii) ADDITION.—The court may order evi- Lands for that fiscal year; under this title to programs, projects, or ac- dence, in addition to the evidence submitted ‘‘(2) assess the relationship of the use re- tivities not affected by such failure to com- for review under this subsection, to be taken ferred to in paragraph (1) to the goals identi- ply. by the Secretary, and to be made part of the fied in the housing plan; ‘‘(2) ACTIONS.—If the Secretary takes an record. ‘‘(3) indicate the programmatic accom- action under subparagraph (A), (B), or (C) of ‘‘(B) SECRETARY.— plishments of the Department; and paragraph (1), the Secretary shall continue ‘‘(i) IN GENERAL.—The Secretary, by reason ‘‘(4) describe the manner in which the De- that action until the Secretary determines of the additional evidence referred to in sub- partment would change its housing plan sub- that the failure by the Department to com- paragraph (A) and filed with the court— mitted under section 803 as a result of its ex- ply with the provision has been remedied by ‘‘(I) may— periences. the Department and the Department is in ‘‘(aa) modify the findings of fact of the ‘‘(c) SUBMISSIONS.—The Secretary shall— compliance with that provision. Secretary; or ‘‘(1) establish a date for submission of each ‘‘(b) NONCOMPLIANCE BECAUSE OF A TECH- ‘‘(bb) make new findings; and report under this section; NICAL INCAPACITY.—The Secretary may pro- ‘‘(II) shall file— ‘‘(2) review each such report; and vide technical assistance for the Depart- ‘‘(aa) such modified or new findings; and ‘‘(3) with respect to each such report, make ment, either directly or indirectly, that is ‘‘(bb) the recommendation of the Sec- recommendations as the Secretary considers designed to increase the capability and ca- retary, if any, for the modification or setting appropriate to carry out the purposes of this pacity of the Director of the Department to aside of the original action of the Secretary. title. administer assistance provided under this ‘‘(ii) FINDINGS.—The findings referred to in ‘‘(d) PUBLIC AVAILABILITY.— title in compliance with the requirements clause (i)(II)(bb) shall, with respect to a ‘‘(1) COMMENTS BY BENEFICIARIES.—In pre- under this title if the Secretary makes a question of fact, be considered to be conclu- paring a report under this section, the Direc- finding under subsection (a), but determines sive if those findings are— tor shall make the report publicly available that the failure of the Department to comply ‘‘(I) supported by substantial evidence on to the beneficiaries of the Hawaiian Homes substantially with the provisions of this the record; and Commission Act, 1920 (42 Stat. 108 et seq.) title— ‘‘(II) considered as a whole. and give a sufficient amount of time to per- ‘‘(1) is not a pattern or practice of activi- ‘‘(4) FINALITY.— mit those beneficiaries to comment on that ties constituting willful noncompliance; and ‘‘(A) IN GENERAL.—Except as provided in report before it is submitted to the Sec- ‘‘(2) is a result of the limited capability or subparagraph (B), upon the filing of the retary (in such manner and at such time as capacity of the Department of Hawaiian record under this subsection with the court— the Director may determine). Home Lands. ‘‘(i) the jurisdiction of the court shall be ‘‘(c) REFERRAL FOR CIVIL ACTION.— ‘‘(2) SUMMARY OF COMMENTS.—The report exclusive; and shall include a summary of any comments ‘‘(1) AUTHORITY.—In lieu of, or in addition ‘‘(ii) the judgment of the court shall be received by the Director from beneficiaries to, any action that the Secretary may take final. under paragraph (1) regarding the program under subsection (a), if the Secretary has ‘‘(B) REVIEW BY SUPREME COURT.—A judg- to carry out the housing plan. reason to believe that the Department of Ha- ment under subparagraph (A) shall be sub- waiian Home Lands has failed to comply sub- ject to review by the Supreme Court of the ‘‘SEC. 821. REVIEW AND AUDIT BY SECRETARY. stantially with any provision of this title, United States upon writ of certiorari or cer- ‘‘(a) ANNUAL REVIEW.— the Secretary may refer the matter to the tification, as provided in section 1254 of title ‘‘(1) IN GENERAL.—The Secretary shall, not Attorney General of the United States with 28, United States Code. less frequently than on an annual basis, a recommendation that an appropriate civil ‘‘SEC. 819. MONITORING OF COMPLIANCE. make such reviews and audits as may be nec- action be instituted. ‘‘(a) ENFORCEABLE AGREEMENTS.— essary or appropriate to determine ‘‘(2) CIVIL ACTION.—Upon receiving a refer- ‘‘(1) IN GENERAL.—The Director, through whether— ral under paragraph (1), the Attorney Gen- binding contractual agreements with owners ‘‘(A) the Director has— eral may bring a civil action in any United or other authorized entities, shall ensure ‘‘(i) carried out eligible activities under States district court of appropriate jurisdic- long-term compliance with the provisions of this title in a timely manner; tion for such relief as may be appropriate, this title. ‘‘(ii) carried out and made certifications in including an action— ‘‘(2) MEASURES.—The measures referred to accordance with the requirements and the ‘‘(A) to recover the amount of the assist- in paragraph (1) shall provide for— primary objectives of this title and with ance furnished under this title that was not ‘‘(A) to the extent allowable by Federal other applicable laws; and expended in accordance with this title; or and State law, the enforcement of the provi- ‘‘(iii) a continuing capacity to carry out ‘‘(B) for mandatory or injunctive relief. sions of this title by the Department and the the eligible activities in a timely manner; ‘‘(d) REVIEW.— Secretary; and ‘‘(B) the Director has complied with the ‘‘(1) IN GENERAL.—If the Director receives ‘‘(B) remedies for breach of the provisions housing plan submitted by the Director notice under subsection (a) of the termi- referred to in paragraph (1). under section 803; and nation, reduction, or limitation of payments ‘‘(b) PERIODIC MONITORING.— ‘‘(C) the performance reports of the De- under this Act, the Director— ‘‘(1) IN GENERAL.—Not less frequently than partment under section 821 are accurate. ‘‘(A) may, not later than 60 days after re- annually, the Director shall review the ac- ‘‘(2) ONSITE VISITS.—Each review conducted ceiving such notice, file with the United tivities conducted and housing assisted under this section shall, to the extent prac- States Court of Appeals for the Ninth Cir- under this title to assess compliance with ticable, include onsite visits by employees of cuit, or in the United States Court of Ap- the requirements of this title. the Department of Housing and Urban Devel- peals for the District of Columbia, a petition ‘‘(2) REVIEW.—Each review under paragraph opment. for review of the action of the Secretary; and (1) shall include onsite inspection of housing ‘‘(b) REPORT BY SECRETARY.—The Sec- ‘‘(B) upon the filing of any petition under to determine compliance with applicable re- retary shall give the Department of Hawai- subparagraph (A), shall forthwith transmit quirements. ian Home Lands not less than 30 days to re- copies of the petition to the Secretary and ‘‘(3) RESULTS.—The results of each review view and comment on a report under this the Attorney General of the United States, under paragraph (1) shall be— subsection. After taking into consideration who shall represent the Secretary in the liti- ‘‘(A) included in a performance report of the comments of the Department, the Sec- gation. the Director submitted to the Secretary retary may revise the report and shall make ‘‘(2) PROCEDURE.— under section 820; and the comments of the Department and the re- ‘‘(A) IN GENERAL.—The Secretary shall file ‘‘(B) made available to the public. port with any revisions, readily available to in the court a record of the proceeding on ‘‘(c) PERFORMANCE MEASURES.—The Sec- the public not later than 30 days after re- which the Secretary based the action, as pro- retary shall establish such performance ceipt of the comments of the Department. vided in section 2112 of title 28, United States measures as may be necessary to assess com- ‘‘(c) EFFECT OF REVIEWS.—The Secretary Code. pliance with the requirements of this title. may make appropriate adjustments in the ‘‘(B) OBJECTIONS.—No objection to the ac- ‘‘SEC. 820. PERFORMANCE REPORTS. amount of annual grants under this title in tion of the Secretary shall be considered by ‘‘(a) REQUIREMENT.—For each fiscal year, accordance with the findings of the Sec- the court unless the Department has reg- the Director shall— retary pursuant to reviews and audits under istered the objection before the Secretary. ‘‘(1) review the progress the Department this section. The Secretary may adjust, re- ‘‘(3) DISPOSITION.— has made during that fiscal year in carrying duce, or withdraw grant amounts, or take ‘‘(A) COURT PROCEEDINGS.— out the housing plan submitted by the De- other action as appropriate in accordance ‘‘(i) JURISDICTION OF COURT.—The court partment under section 803; and with the reviews and audits of the Secretary shall have jurisdiction to affirm or modify ‘‘(2) submit a report to the Secretary (in a under this section, except that grant the action of the Secretary or to set the ac- form acceptable to the Secretary) describing amounts already expended on affordable tion aside in whole or in part. the conclusions of the review. housing activities may not be recaptured or January 19, 1999 CONGRESSIONAL RECORD — SENATE S685

deducted from future assistance provided to ‘‘(7) OFFICE OF HAWAIIAN AFFAIRS.—The mortgage loans not guaranteed or insured by the Department of Hawaiian Home Lands. term ‘Office of Hawaiian Affairs’ means the any agency or instrumentality of the Fed- ‘‘SEC. 822. GENERAL ACCOUNTING OFFICE AU- entity of that name established under the eral Government; DITS. constitution of the State of Hawaii. ‘‘(C) involve a principal obligation not ‘‘To the extent that the financial trans- ‘‘(b) AUTHORITY.—To provide access to exceeding— actions of the Department of Hawaiian Home sources of private financing to Native Hawai- ‘‘(i) 97.75 percent of the appraised value of Lands involving grant amounts under this ian families who otherwise could not acquire the property as of the date the loan is ac- title relate to amounts provided under this housing financing because of the unique cepted for guarantee (or 98.75 percent if the title, those transactions may be audited by legal status of the Hawaiian home lands or value of the property is $50,000 or less); or the Comptroller General of the United States as a result of a lack of access to private fi- ‘‘(ii) the amount approved by the Secretary under such regulations as may be prescribed nancial markets, the Secretary may guaran- under this section; and by the Comptroller General. The Comptrol- tee an amount not to exceed 100 percent of ‘‘(D) involve a payment on account of the ler General of the United States shall have the unpaid principal and interest that is due property— access to all books, accounts, records, re- on an eligible loan under subsection (b). ‘‘(i) in cash or its equivalent; or ‘‘(c) ELIGIBLE LOANS.—Under this section, a ports, files, and other papers, things, or prop- ‘‘(ii) through the value of any improve- loan is an eligible loan if that loan meets the erty belonging to or in use by the Depart- ments to the property made through the following requirements: ment of Hawaiian Home Lands pertaining to skilled or unskilled labor of the borrower, as ‘‘(1) ELIGIBLE BORROWERS.—The loans is such financial transactions and necessary to the Secretary shall provide. made only to a borrower who— facilitate the audit. ‘‘(d) CERTIFICATE OF GUARANTEE.— ‘‘(A) is a Native Hawaiian family; ‘‘SEC. 823. REPORTS TO CONGRESS. ‘‘(1) APPROVAL PROCESS.— ‘‘(B) the Department of Hawaiian Home ‘‘(A) IN GENERAL.—Before the Secretary ap- ‘‘(a) IN GENERAL.—Not later than 90 days Lands; proves any loan for guarantee under this sec- after the conclusion of each fiscal year in ‘‘(C) the Office of Hawaiian Affairs; or which assistance under this title is made tion, the lender shall submit the application ‘‘(D) a private nonprofit organization expe- for the loan to the Secretary for examina- available, the Secretary shall submit to the rienced in the planning and development of Congress a report that contains— tion. affordable housing for Native Hawaiians. ‘‘(B) APPROVAL.—If the Secretary approves ‘‘(1) a description of the progress made in ‘‘(2) ELIGIBLE HOUSING.— accomplishing the objectives of this title; the application submitted under subpara- ‘‘(A) IN GENERAL.—The loan will be used to graph (A), the Secretary shall issue a certifi- ‘‘(2) a summary of the use of funds avail- construct, acquire, or rehabilitate not more able under this title during the preceding fis- cate under this subsection as evidence of the than 4-family dwellings that are standard loan guarantee approved. cal year; and housing and are located on Hawaiian Home ‘‘(2) STANDARD FOR APPROVAL.—The Sec- ‘‘(3) a description of the aggregate out- Lands for which a housing plan described in standing loan guarantees under section 184A retary may approve a loan for guarantee subparagraph (B) applies. under this section and issue a certificate of the Housing and Community Development ‘‘(B) HOUSING PLAN.—A housing plan de- under this subsection only if the Secretary Act of 1992. scribed in this subparagraph is a housing determines that there is a reasonable pros- ‘‘(b) RELATED REPORTS.—The Secretary plan that— pect of repayment of the loan. may require the Director to submit to the ‘‘(i) has been submitted and approved by ‘‘(3) EFFECT.— Secretary such reports and other informa- the Secretary under section 803 of the Native ‘‘(A) IN GENERAL.—A certificate of guaran- tion as may be necessary in order for the American Housing Assistance and Self-De- tee issued under this subsection by the Sec- Secretary to prepare the report required termination Amendments of 1999; and retary shall be conclusive evidence of the eli- under subsection (a). ‘‘(ii) provides for the use of loan guaran- gibility of the loan for guarantee under this ‘‘SEC. 824. AUTHORIZATION OF APPROPRIATIONS. tees under this section to provide affordable section and the amount of that guarantee. ‘‘There are authorized to be appropriated homeownership housing on Hawaiian Home ‘‘(B) EVIDENCE.—The evidence referred to to the Department of Housing and Urban De- Lands. in subparagraph (A) shall be incontestable in velopment for grants under this title such ‘‘(3) SECURITY.—The loan may be secured the hands of the bearer. sums as may be necessary for each of fiscal by any collateral authorized under applica- ‘‘(C) FULL FAITH AND CREDIT.—The full years 2000, 2001, 2002, 2003, and 2004.’’. ble Federal law or State law. faith and credit of the United States is ‘‘(4) LENDERS.— SEC. 4. LOAN GUARANTEES FOR NATIVE HAWAI- pledged to the payment of all amounts IAN HOUSING. ‘‘(A) IN GENERAL.—The loan shall be made agreed to be paid by the Secretary as secu- Subtitle E of title I of the Housing and only by a lender approved by, and meeting rity for the obligations made by the Sec- Community Development Act of 1992 is qualifications established by, the Secretary, retary under this section. amended by inserting after section 184 (12 including any lender described in subpara- ‘‘(4) FRAUD AND MISREPRESENTATION.—This U.S.C. 1715z–13a) the following: graph (B), except that a loan otherwise in- subsection may not be construed— sured or guaranteed by an agency of the Fed- ‘‘SEC. 184A. LOAN GUARANTEES FOR NATIVE HA- ‘‘(A) to preclude the Secretary from estab- WAIIAN HOUSING. eral Government or made by the Department lishing defenses against the original lender ‘‘(a) DEFINITIONS.—In this section: of Hawaiian Home Lands from amounts bor- based on fraud or material misrepresenta- ‘‘(1) DEPARTMENT OF HAWAIIAN HOME rowed from the United Sates shall not be eli- tion; or LANDS.—The term ‘Department of Hawaiian gible for a guarantee under this section. ‘‘(B) to bar the Secretary from establishing Home Lands’ means the agency or depart- ‘‘(B) APPROVAL.—The following lenders by regulations that are on the date of ment of the government of the State of Ha- shall be considered to be lenders that have issuance or disbursement, whichever is ear- waii that is responsible for the administra- been approved by the Secretary: lier, partial defenses to the amount payable tion of the Hawaiian Homes Commission ‘‘(i) Any mortgagee approved by the Sec- on the guarantee. Act, 1920 (42 Stat. 108 set seq.). retary for participation in the single family ‘‘(e) GUARANTEE FEE.— ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible mortgage insurance program under title II of ‘‘(1) IN GENERAL.—The Secretary shall fix entity’ means a Native Hawaiian family, the the National Housing Act (12 U.S.C.A. 1707 et and collect a guarantee fee for the guarantee Department of Hawaiian Home Lands, the seq.). of a loan under this section, which may not Office of Hawaiian Affairs, private nonprofit ‘‘(ii) Any lender that makes housing loans exceed the amount equal to 1 percent of the or for profit organizations experienced in the under chapter 37 of title 38, United States principal obligation of the loan. planning and development of affordable Code, that are automatically guaranteed ‘‘(2) PAYMENT.—The fee under this sub- housing for Native Hawaiians. under section 3702(d) of title 38, United section shall— ‘‘(3) FAMILY.—The term ‘family’ means 1 or States Code. ‘‘(A) be paid by the lender at time of more persons maintaining a household, as ‘‘(iii) Any lender approved by the Sec- issuance of the guarantee; and the Secretary shall by regulation provide. retary of Agriculture to make guaranteed ‘‘(B) be adequate, in the determination of ‘‘(4) GUARANTEE FUND.—The term ‘Guaran- loans for single family housing under the the Secretary, to cover expenses and prob- tee Fund’ means the Native Hawaiian Hous- Housing Act of 1949 (42 U.S.C.A. 1441 et seq.). able losses. ing Loan Guarantee Fund established under ‘‘(iv) Any other lender that is supervised, ‘‘(3) DEPOSIT.—The Secretary shall deposit subsection (i). approved, regulated, or insured by any agen- any fees collected under this subsection in ‘‘(5) HAWAIIAN HOME LANDS.—The term ‘Ha- cy of the Federal Government. the Native Hawaiian Housing Loan Guaran- waiian Home Lands’ means lands that— ‘‘(5) TERMS.—The loan shall— tee Fund established under subsection (j). ‘‘(A) have the status of Hawaiian Home ‘‘(A) be made for a term not exceeding 30 ‘‘(f) LIABILITY UNDER GUARANTEE.—The li- Lands under section 204 of the Hawaiian years; ability under a guarantee provided under Homes Commission Act (42 Stat. 110); or ‘‘(B) bear interest (exclusive of the guaran- this section shall decrease or increase on a ‘‘(B) are acquired pursuant to that Act. tee fee under subsection (d) and service pro rata basis according to any decrease or ‘‘(6) NATIVE HAWAIIAN.—The term ‘Native charges, if any) at a rate agreed upon by the increase in the amount of the unpaid obliga- Hawaiian’ has the meaning given the term borrower and the lender and determined by tion under the provisions of the loan agree- ‘native Hawaiian’ in section 201 of the Ha- the Secretary to be reasonable, but not to ment involved. waiian Homes Commission Act, 1920 (42 Stat. exceed the rate generally charged in the area ‘‘(g) TRANSFER AND ASSUMPTION.—Notwith- 108 et seq.). (as determined by the Secretary) for home standing any other provision of law, any S686 CONGRESSIONAL RECORD — SENATE January 19, 1999

loan guaranteed under this section, includ- (after providing written notice of that action ‘‘(3) USE.—Amounts in the Guarantee Fund ing the security given for the loan, may be to the Secretary). shall be available, to the extent provided in sold or assigned by the lender to any finan- ‘‘(bb) PAYMENT.—Upon a final order by the appropriations Acts, for— cial institution subject to examination and court authorizing foreclosure and submission ‘‘(A) fulfilling any obligations of the Sec- supervision by an agency of the Federal Gov- to the Secretary of a claim for payment retary with respect to loans guaranteed ernment or of any State or the District of under the guarantee, the Secretary shall pay under this section, including the costs (as Columbia. to the holder of the certificate the pro rata that term is defined in section 502 of the Fed- ‘‘(h) DISQUALIFICATION OF LENDERS AND portion of the amount guaranteed (as deter- eral Credit Reform Act of 1990 (2 U.S.C. 661a)) CIVIL MONEY PENALTIES.— mined pursuant to subsection (f)) plus rea- of such loans; ‘‘(1) IN GENERAL.— sonable fees and expenses as approved by the ‘‘(B) paying taxes, insurance, prior liens, ‘‘(A) GROUNDS FOR ACTION.—The Secretary Secretary. expenses necessary to make fiscal adjust- may take action under subparagraph (B) if ‘‘(cc) SUBROGATION.—The rights of the Sec- ment in connection with the application and the Secretary determines that any lender or retary shall be subrogated to the rights of transmittal of collections, and other ex- holder of a guarantee certificate under sub- the holder of the guarantee. The holder shall penses and advances to protect the Secretary section (c)— assign the obligation and security to the for loans which are guaranteed under this ‘‘(i) has failed— Secretary. section or held by the Secretary; ‘‘(I) to maintain adequate accounting ‘‘(II) NO FORECLOSURE.— ‘‘(C) acquiring such security property at records; ‘‘(aa) IN GENERAL.—Without seeking fore- foreclosure sales or otherwise; ‘‘(II) to service adequately loans guaran- closure (or in any case in which a foreclosure ‘‘(D) paying administrative expenses in teed under this section; or proceeding initiated under clause (i) contin- connection with this section; and ‘‘(III) to exercise proper credit or under- ues for a period in excess of 1 year), the hold- ‘‘(E) reasonable and necessary costs of re- writing judgment; or er of the guarantee may submit to the Sec- habilitation and repair to properties that the ‘‘(ii) has engaged in practices otherwise retary a request to assign the obligation and Secretary holds or owns pursuant to this sec- detrimental to the interest of a borrower or security interest to the Secretary in return tion. the United States. for payment of the claim under the guaran- ‘‘(4) INVESTMENT.—Any amounts in the ‘‘(B) ACTIONS.—Upon a determination by tee. The Secretary may accept assignment of Guarantee Fund determined by the Sec- the Secretary that a holder of a guarantee the loan if the Secretary determines that the retary to be in excess of amounts currently certificate under subsection (c) has failed to assignment is in the best interest of the required at the time of the determination to carry out an activity described in subpara- United States. carry out this section may be invested in ob- graph (A)(i) or has engaged in practices de- ‘‘(bb) PAYMENT.—Upon assignment, the ligations of the United States. scribed in subparagraph (A)(ii), the Sec- Secretary shall pay to the holder of the ‘‘(5) LIMITATION ON COMMITMENTS TO GUAR- retary may— guarantee the pro rata portion of the ANTEE LOANS AND MORTGAGES.— ‘‘(i) refuse, either temporarily or perma- amount guaranteed (as determined under ‘‘(A) REQUIREMENT OF APPROPRIATIONS.— nently, to guarantee any further loans made subsection (f)). The authority of the Secretary to enter into by such lender or holder; ‘‘(cc) SUBROGATION.—The rights of the Sec- commitments to guarantee loans under this ‘‘(ii) bar such lender or holder from acquir- retary shall be subrogated to the rights of section shall be effective for any fiscal year ing additional loans guaranteed under this the holder of the guarantee. The holder shall to the extent, or in such amounts as, are or section; and assign the obligation and security to the have been provided in appropriations Acts, ‘‘(iii) require that such lender or holder as- Secretary. without regard to the fiscal year for which sume not less than 10 percent of any loss on ‘‘(B) REQUIREMENTS.—Before any payment such amounts were appropriated. further loans made or held by the lender or under a guarantee is made under subpara- ‘‘(B) LIMITATIONS ON COSTS OF GUARAN- holder that are guaranteed under this sec- graph (A), the holder of the guarantee shall TEES.—The authority of the Secretary to tion. exhaust all reasonable possibilities of collec- enter into commitments to guarantee loans ‘‘(2) CIVIL MONEY PENALTIES FOR INTEN- tion. Upon payment, in whole or in part, to under this section shall be effective for any TIONAL VIOLATIONS.— the holder, the note or judgment evidencing fiscal year only to the extent that amounts ‘‘(A) IN GENERAL.—The Secretary may im- the debt shall be assigned to the United in the Guarantee Fund are or have been pose a civil monetary penalty on a lender or States and the holder shall have no further made available in appropriations Acts to holder of a guarantee certificate under sub- claim against the borrower or the United cover the costs (as that term is defined in section (d) if the Secretary determines that States. The Secretary shall then take such section 502 of the Federal Credit Reform Act the holder or lender has intentionally action to collect as the Secretary determines of 1990 (2 U.S.C. 661a)) of such loan guaran- failed— to be appropriate. tees for such fiscal year. Any amounts appro- ‘‘(i) to maintain adequate accounting ‘‘(2) LIMITATIONS ON LIQUIDATION.— priated pursuant to this subparagraph shall records; ‘‘(A) IN GENERAL.—If a borrower defaults on remain available until expended. ‘‘(ii) to adequately service loans guaran- a loan guaranteed under this section that in- ‘‘(C) LIMITATION ON OUTSTANDING AGGRE- teed under this section; or volves a security interest in restricted Ha- GATE PRINCIPAL AMOUNT.—Subject to the lim- ‘‘(iii) to exercise proper credit or under- waiian Home Land property, the mortgagee itations in subparagraphs (A) and (B), the writing judgment. or the Secretary shall only pursue liquida- Secretary may enter into commitments to ‘‘(B) PENALTIES.—A civil monetary penalty tion after offering to transfer the account to guarantee loans under this section for each imposed under this paragraph shall be im- another eligible Hawaiian family or the De- of fiscal years 2000, 2001, 2002, 2003, and 2004 posed in the manner and be in an amount partment of Hawaiian Home Lands. with an aggregate outstanding principal provided under section 536 of the National ‘‘(B) LIMITATION.—If, after action is taken amount not exceeding $100,000,000 for each Housing Act (12 U.S.C.A. 1735f–1) with respect under subparagraph (A), the mortgagee or such fiscal year. to mortgagees and lenders under that Act. the Secretary subsequently proceeds to liq- ‘‘(6) LIABILITIES.—All liabilities and obliga- ‘‘(3) PAYMENT ON LOANS MADE IN GOOD uidate the account, the mortgagee or the tions of the assets credited to the Guarantee FAITH.—Notwithstanding paragraphs (1) and Secretary shall not sell, transfer, or other- Fund under paragraph (2)(A) shall be liabil- (2), if a loan was made in good faith, the Sec- wise dispose of or alienate the property de- ities and obligations of the Guarantee Fund. retary may not refuse to pay a lender or scribed in subparagraph (A) except to an- ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— holder of a valid guarantee on that loan, other eligible Hawaiian family or to the De- There are authorized to be appropriated to without regard to whether the lender or partment of Hawaiian Home Lands. the Guarantee Fund to carry out this section holder is barred under this subsection. ‘‘(j) HAWAIIAN HOUSING LOAN GUARANTEE such sums as may be necessary for each of ‘‘(i) PAYMENT UNDER GUARANTEE.— FUND.— fiscal years 2000, 2001, 2002, 2003, and 2004. ‘‘(1) LENDER OPTIONS.— ‘‘(1) ESTABLISHMENT.—There is established ‘‘(k) REQUIREMENTS FOR STANDARD HOUS- ‘‘(A) IN GENERAL.— in the Treasury of the United States the Ha- ING.— ‘‘(i) NOTIFICATION.—If borrower on a loan waiian Housing Loan Guarantee Fund for the ‘‘(1) IN GENERAL.—The Secretary shall, by guaranteed under this section defaults on purpose of providing loan guarantees under regulation, establish housing safety and the loan, the holder of the guarantee certifi- this section. quality standards to be applied for use under cate shall provide written notice of the de- ‘‘(2) CREDITS.—The Guarantee Fund shall this section. fault to the Secretary. be credited with— ‘‘(2) STANDARDS.—The standards referred to ‘‘(ii) PAYMENT.—Upon providing the notice ‘‘(A) any amount, claims, notes, mort- in paragraph (1) shall— required under clause (i), the holder of the gages, contracts, and property acquired by ‘‘(A) provide sufficient flexibility to permit guarantee certificate shall be entitled to the Secretary under this section, and any the use of various designs and materials in payment under the guarantee (subject to the collections and proceeds therefrom; housing acquired with loans guaranteed provisions of this section) and may proceed ‘‘(B) any amounts appropriated pursuant under this section; and to obtain payment in 1 of the following man- to paragraph (7); ‘‘(B) require each dwelling unit in any ners: ‘‘(C) any guarantee fees collected under housing acquired in the manner described in ‘‘(I) FORECLOSURE.— subsection (d); and subparagraph (A) to— ‘‘(aa) IN GENERAL.—The holder of the cer- ‘‘(D) any interest or earnings on amounts ‘‘(i) be decent, safe, sanitary, and modest tificate may initiate foreclosure proceedings invested under paragraph (4). in size and design; January 19, 1999 CONGRESSIONAL RECORD — SENATE S687 ‘‘(ii) conform with applicable general con- for human rights in Nigeria and should unequivocal message to whomever is struction standards for the region in which aggressively support a timely and ef- ruling Nigeria that disregard for de- the housing is located; fective transition to democratic, civil- mocracy, human rights and the institu- ‘‘(iii) contain a plumbing system that— ian government for the people of Nige- tions of civil society in Nigeria is sim- ‘‘(I) uses a properly installed system of pip- ria. ing; ply unacceptable. Second, the bill pro- ‘‘(II) includes a kitchen sink and a This bill draws heavily from legisla- vides some direction to the Clinton Ad- partitional bathroom with lavatory, toilet, tion introduced during the last two ministration which had considerable and bath or shower; and Congresses with the leadership of sev- difficulty articulating a coherent pol- ‘‘(III) uses water supply, plumbing, and eral other distinguished members of icy on Nigeria throughout the Abacha sewage disposal systems that conform to any Congress. In the 104th Congress, I regime, and which, I fear, has too minimum standards established by the appli- joined the former chair of the Senate quickly embraced the Abubakar regime cable county or State; Subcommittee on Africa, Senator despite several important outstanding ‘‘(iv) contain an electrical system using Kassebaum, and 20 other Senators in wiring and equipment properly installed to problems. introducing sanctions legislation. In Nigeria has suffered under military safely supply electrical energy for adequate the 105th Congress, I introduced an up- lighting and for operation of appliances that rule for most of its nearly 40 years as conforms to any appropriate county, State, dated version of that bill, a companion an independent nation. By virtue of its or national code; measure of which was introduced in the size, geographic location, and resource ‘‘(v) be not less than the size provided House by the distinguished chair of the base, it is economically and strategi- under the applicable locally adopted stand- House International Relations Com- cally important both in regional and ards for size of dwelling units, except that mittee, Mr. GILMAN of New York, and a international terms. Nigeria is critical the Secretary, upon request of the Depart- distinguished member of that Commit- to American interests. But Nigeria’s ment of Hawaiian Home Lands may waive tee and of the Congressional Black future was nearly destroyed by the the size requirements under this paragraph; Caucus, Mr. PAYNE of New Jersey. I and military government of General Sani commend the help and assistance of all Abacha. Abacha presided over a Nigeria ‘‘(vi) conform with the energy performance of my colleagues on this important requirements for new construction estab- stunted by rampant corruption, eco- issue and I appreciate the opportunity lished by the Secretary under section 526(a) nomic mismanagement and the brutal to work with them toward the broader of the National Housing Act (12 U.S.C.A. subjugation of its people. 1735f–4), unless the Secretary determines goal of a freer Nigeria. Gen. Abacha was by any definition an Mr. President, the Nigeria Democ- that the requirements are not applicable. authoritarian leader of the worst sort. ‘‘(l) APPLICABILITY OF CIVIL RIGHTS STAT- racy and Civil Society Empowerment He routinely imprisoned individuals for UTES.—To the extent that the requirements Act provides by law for many of the expressing their political opinions and of title VI of the Civil Rights Act of 1964 (42 sanctions that the United States has skimmed Nigeria’s precious resources U.S.C. 2000d et seq.) or of title VIII of the had in place against Nigeria for a num- Civil Rights Act of 1968 (42 U.S.C. 3601 et for his own gains and that of his sup- ber of years. It includes a ban on most seq.) apply to a guarantee provided under porters and cronies. He pretended to foreign direct assistance and a ban on this subsection, nothing in the requirements set a timetable for a democratic transi- concerning discrimination on the basis of the sale of military goods and military assistance to Nigeria, and suggests the tion, but each of the five officially race shall be construed to prevent the provi- sanctioned parties under his plan ended sion of the guarantee to an eligible entity on reimposition of restriction on visas for the basis that the entity serves Native Ha- top Nigerian officials. But none of up endorsing Gen. Abacha as their can- waiian families or is a Native Hawaiian fam- these sanctions will be imposed if the didate in what would have been noth- ily.’’. President can certify to the Congress ing more than a circus referendum on that specific conditions, which I will Abacha himself. By Mr. FEINGOLD: During the dark days of the Abacha call ‘‘benchmarks,’’ regarding the tran- S. 226. A bill to promote democracy sition to democracy have taken place regime, any criticism of the so-called and good governance in Nigeria, and in Nigeria. These benchmarks include transition process was punishable by for other purposes; to the Committee free and fair democratic elections, the five years in a Nigerian prison. Nige- on Foreign Relations. release of political prisoners, freedom rian human rights activists and gov- THE NIGERIA DEMOCRACY AND CIVIL SOCIETY of the press, continued access for inter- ernment critics were commonly EMPOWERMENT ACT OF 1999 national human rights monitors and whisked away to secret trials before Mr. FEINGOLD. Mr. President, I rise the repeal of the many repressive de- military courts and imprisoned; inde- to introduce legislation regarding Ni- crees pressed upon the Nigerian people pendent media outlets were silenced; geria, a country that stands today by successive military regimes. workers’ rights to organize were re- astride the border between a repressive This legislation also provides for $37 stricted; and the infamous State Secu- history and a potentially productive million in development assistance over rity [Detention of Persons] Decree No. future. three years to support democracy and 2, giving the military sweeping powers As the Ranking Democrat of the Sen- governance programs and the activities of arrest and detention, remained in ate Subcommittee on Africa, I have of the U.S. Information Agency, and force. long been concerned about the collaps- mandates a larger presence for the U.S. Perhaps the most horrific example of ing economic and political situation in Agency for International Development. repression by the Abacha government Nigeria. Nigeria, with its rich history, I want to emphasize that this bill au- was the execution of human rights and abundant natural resources and won- thorizes no new money. All of these environmental activist Ken Saro-Wiwa derful cultural diversity, has the po- funds would come out of existing and eight others in November 1995 on tential to be an important regional USAID and USIA appropriations. trumped-up charges. Between the time leader in West Africa, and the entire Finally, the bill requires the Sec- of that barbaric spectacle and his African continent. But, sadly, too retary of State to submit a report on death, Abacha appeared to be working many of Nigeria’s leaders have squan- corruption in Nigeria including the evi- even harder to tighten its grip on the dered that potential and the good will dence of corruption by government of- country, wasting no opportunity to of the world with repressive policies, ficials in Nigeria and the impact of cor- subjugate the people of Nigeria. human rights abuses and corruption. ruption on the delivery of government But with the replacement of Abacha The Nigeria Democracy and Civil So- services in Nigeria, on U.S. business in- by the current military ruler, Gen. ciety Empowerment Act of 1999 that I terests in Nigeria, and on Nigeria’s for- Abdulsalami Abubakar, there has been offer today provides a clear framework eign policy. It would also require that reason to be optimistic about Nigeria’s for U.S. policy toward that troubled the Secretary’s report include informa- future. Although he has not yet moved West African nation. The Nigeria De- tion on the impact on U.S. citizens of to repeal the repressive decrees that mocracy and Civil Society Empower- advance fee fraud and other fraudulent place severe restrictions on the basic ment Act declares that the United business schemes originating in Nige- freedoms of Nigerians, including afore- States should encourage the political, ria. mentioned Decree No. 2, Gen. economic and legal reforms necessary The intent of this legislation is two- Abubakar has made significant to ensure the rule of law and respect fold. First, it will continue to send an progress in enacting political reforms, S688 CONGRESSIONAL RECORD — SENATE January 19, 1999 including the establishment of a realis- economic growth, with the United stitute an open political process in Ni- tic time line for the transition to civil- States purchasing an estimated 41 per- geria. Despite all the tumultuous ian rule and guidelines for political cent of the output. events that have taken place in these participation. According to his transi- Corruption and criminal activity in few months. I still believe these bench- tion plan, power will be handed over to this military-controlled economic and marks are important, and I continue to a civilian government of May 29, 1999, political system have become common, call on Gen. Abubaker to implement as after a series of elections scheduled for including reports of drug trafficking soon as possible these important December 5, 1998 (local government), and consumer fraud schemes that have changes, such as the repeal of the re- January 9, 1999 (state assembly and originated in Nigeria and reached into pressive decrees enacted under governors), February 20 1999 (national the United States, including my home Abacha’s rule, so that genuine reform assembly) and February 27, 1999 (presi- state of Wisconsin. may flourish in Nigeria. dential). Abubakar also agreed to re- The last time Nigeria appeared Mr. President, I ask unanimous con- lease political prisoners, and some posied finally to make a democratic sent that the bill be printed in the have indeed been released including transition, during the 1993 presidential RECORD. several prominent individuals. election, the military quickly annulled There being no objection, the bill was Most Nigerians appear to have em- the results, and promptly put into ordered to be printed in the RECORD, as braced this transition program, and prision the presumed winner of that follows: many in the international community eclection Chief Moshood Abiola. S. 226 have welcomed Gen. Abubakar’s bold Despite numerous domestic and Be it enacted by the Senate and House of statements. Nevertheless, observers re- international pleas for his release, he Representatives of the United States of America main apprehensive about the role of remained in prison until his tragic in Congress assembled, the security forces and of the military, death in July. Years of neglect and SECTION 1. SHORT TITLE. perceived weaknesses in the electoral months of solitary confinement took This Act may be cited as the ‘‘Nigerian De- system, the lack of a clear constitu- its toll on Chief Abiola, and barely one mocracy and Civil Society Empowerment Act of 1999’’. tional order, and the possibility of vio- month after the death of General lence during the electoral period. Nige- SEC. 2. FINDINGS AND DECLARATION OF POLICY. Abacha, Abiola died of an apparent (a) FINDINGS.—Congress makes the follow- rians also remain concerned about the heart attack during a meeting with ing findings: important questions of federalism and senior American officials. (1) The rule by successive military regimes decentralization—including the control It is unfortunate, but Nigeria suffers in Nigeria has harmed the lives of the people and distribution of national wealth— greatly from the weight of its tortured of Nigeria, undermined confidence in the Ni- which have yet to be satisfactorily history. I truly hope the transition gerian economy, damaged relations between worked out. These concerns, which re- currently underway will have better re- Nigeria and the United States, and threat- main a backdrop to the current transi- sults than previous ones, but we must ened the political and economic stability of tion, tend to dampen what is otherwise West Africa. not let hope and expectation cloud our (2) The current military regime, under the a largely optimistic and enthusiastic standards for what is best for Nigeria. leadership of Gen. Abdusalami Abubakar, attitude throughout the country. I am afraid that the international com- has made significant progress in liberalizing Thus, as pleased as I am to see the munity, and particularly the Clinton the political environment in Nigeria, includ- progress being made, I remain cautious administration, are so quick to reward ing the release of many political prisoners, about embracing the new dispensation counties for good behavior, that they increased respect for freedom of assembly, until we can actually see it in place. then trend to ignore continuing bad be- expression and association, and the estab- Adding to my concerns is the disturb- havior. I have noticed this problem in lishment of a timeframe for a transition to ing behavior of the military over New civilian rule. U.S. relations with Indonesia, China, (3) Previous military regimes allowed Ni- Year’s weekend in Bayelsa state. Ac- and elsewhere, and it certainly is a geria to become a haven for international cording to unconfirmed reports, as concern with Nigeria now. drug trafficking rings and other criminal or- many as 100 people may have been It is in that light that I have decided ganizations, although the current govern- killed in the area around Yenagoa, and to reintroduce my bill. This may sound ment has taken some steps to cooperate with the military reinforcements have odd, but I actually hope I don’t need to the United States Government in halting brought in a force of 10,000 to 15,000 pursue this legislation in its current such trafficking. troops to the area. The military gov- form. I sincerely hope that the transi- (4) Since 1993, the United States and other ernment also declared as state of emer- tion in Nigeria goes according to all members of the international community have imposed limited sanctions against Ni- gency for several days. While the cir- our best wishes, and that there will be geria in response to human rights violations cumstances surrounding the crackdown no need to impose these sanctions. But and political repression, although some of are unclear, it is troubling that—even if it does not, the spoilers should be these sanctions have been lifted in response during this sensitive time of political aware the U.S. Congress is watching, to recent political liberalization. transition—the Abubakar regime and will act. This bill provides the (5) Despite the progress made in protecting would rely so heavily on hold habits. means for that action. We cannot let certain freedoms, numerous decrees are still Minor disturbance? Send in thousands Nigeria spiral down into the quagmire in force that suspend the constitutional pro- of troops to take care of it! I fear these that has overtaken so much of the con- tection of fundamental human rights, allow indefinite detention without charge, and re- troops do not know how to ‘‘maintain tinent. voke the jurisdiction of civilian courts over public order’’; rather, they know only I have long urged the Administration executive actions. how to implement repression. How seri- to take the toughest stance possible in (6) As a party to the International Cov- ously can we take Abubakar’s encour- support of democracy in Nigeria. The enant on Civil and Political Rights (ICCPR) aging statements about political re- regime in Nigeria must know that any- and the African Charter on Human and Peo- form, when he continues to use the in- thing less than a transparent transi- ples’ Rights, and a signatory to the Harare struments of repression learned under tion to civilian rule will be met with Commonwealth Declaration, Nigeria is obli- the Abacha regime? severe consequences, including new gated to fairly conduct elections that guar- Nigeria’s political transition is tak- antee the free expression of the will of the sanctions as mandated in this bill. electors. ing place in the context of economic Mr. President, the legislation I intro- (7) As the leading military force within the and political collapse. Nigeria has the duce today represents and effort to en- Economic Community of West African potential to be the economic power- courage the best that Nigeria has to States (ECOWAS) peacekeeping force, Nige- house on the African continent, a key offer, to support those Nigerians who ria has played a major role in attempting to regional political leader, and an impor- have worked tirelessly and fearlessly secure peace in Liberia and Sierra Leone. tant American trading partner, but it for democracy and civilian rule and to (8) Despite the optimism expressed by is none of these things. Despite its many observers about the progress that has move our own government toward a Ni- been made in Nigeria, the country’s recent wealth, economic activity in Nigeria geria policy that vigorously reflects history raises serious questions about the continues to stagnate, Even oil reve- the best American values. potential success of the transition process. nues are not what they might be, but The provisions of my bill include In particular, events in the Niger Delta over they remain the only reliable source of benchmarks defining what would con- the New Year underscore the critical need January 19, 1999 CONGRESSIONAL RECORD — SENATE S689

for ongoing monitoring of the situation and (c) STAFF LEVELS AND ASSIGNMENTS OF stitutions described in this paragraph are indicate that a return by the military to re- UNITED STATES PERSONNEL IN NIGERIA.— the African Development Bank, the Inter- pressive methods is still a possibility. (1) FINDING.—Congress finds that staff lev- national Bank for Reconstruction and Devel- (b) DECLARATION OF POLICY.—Congress de- els at the office of the United States Agency opment, the International Development As- clares that the United States should encour- for International Development in Lagos, Ni- sociation, the International Finance Cor- age political, economic, and legal reforms geria, are inadequate. poration, the Multilateral Investment Guar- necessary to ensure rule of law and respect (2) SENSE OF CONGRESS.—It is the sense of anty Agency, and the International Mone- for human rights in Nigeria and support a Congress that the Administrator of the tary Fund. timely, effective, and sustainable transition United States Agency for International De- SEC. 6. SENSE OF CONGRESS REGARDING ADMIS- to democratic, civilian government in Nige- velopment should— SION INTO THE UNITED STATES OF ria. (A) increase the number of United States CERTAIN NIGERIAN NATIONALS. SEC. 3. SENSE OF CONGRESS. personnel at such Agency’s office in Lagos, It is the sense of Congress that unless the President determines and certifies to the ap- (a) INTERNATIONAL COOPERATION.—It is the Nigeria, from within the current, overall sense of Congress that the President should staff resources of such Agency in order for propriate congressional committees by July actively seek to coordinate with other coun- such office to be sufficiently staffed to carry 1, 1999, that a democratic transition to civil- tries to further— out subsection (a); and ian rule has taken place in Nigeria, the Sec- retary of State should deny a visa to any (1) the United States policy of promoting (B) consider placement of personnel else- alien who is a senior member of the Nigerian the rule of law and respect for human rights; where in Nigeria. government or a military officer currently and SEC. 5. PROHIBITION ON ECONOMIC ASSISTANCE in the armed forces of Nigeria. (2) the transition to democratic civilian TO THE GOVERNMENT OF NIGERIA; government. PROHIBITION ON MILITARY ASSIST- SEC. 7. WAIVER OF PROHIBITIONS AGAINST NI- ANCE FOR NIGERIA; REQUIREMENT GERIA IF CERTAIN REQUIREMENTS (b) UNITED NATIONS HUMAN RIGHTS COMMIS- TO OPPOSE MULTILATERAL ASSIST- MET. SION.—It is the sense of Congress that, in ANCE FOR NIGERIA. (a) IN GENERAL.—The President may waive light of the importance of Nigeria to the re- (a) PROHIBITION ON ECONOMIC ASSISTANCE.— any of the prohibitions contained in section gion and the severity of successive military (1) IN GENERAL.—Economic assistance (in- 5 or 6 for any fiscal year if the President regimes, the President should instruct the cluding funds previously appropriated for makes a determination under subsection (b) United States Representative to the United economic assistance) shall not be provided to for that fiscal year and transmits a notifica- Nations Commission on Human Rights the Government of Nigeria. tion to Congress of that determination under (UNCHR) to use the voice and vote of the (2) ECONOMIC ASSISTANCE DEFINED.—As used subsection (c). United States at the annual meeting of the in this subsection, the term ‘‘economic (b) PRESIDENTIAL DETERMINATION RE- Commission— assistance’’— QUIRED.—A determination under this sub- (1) to condemn human rights abuses in Ni- (A) means— section is a determination that— geria, as appropriate, while recognizing the (i) any assistance under part I of the For- (1) the Government of Nigeria— progress that has been made; and eign Assistance Act of 1961 (22 U.S.C. 2151 et (A) is not harassing or imprisoning human (2) to press for the continued renewal of seq.) and any assistance under chapter 4 of rights and democracy advocates and individ- the mandate of, and continued access to Ni- part II of such Act (22 U.S.C. 2346 et seq.) (re- uals for expressing their political views; geria for, the special rapporteur on Nigeria. lating to economic support fund); and (B) has implemented the transition pro- SEC. 4. ASSISTANCE TO PROMOTE DEMOCRACY (ii) any financing by the Export-Import gram announced in July 1998; AND CIVIL SOCIETY IN NIGERIA. Bank of the United States, financing and as- (C) is respecting freedom of speech, assem- (a) DEVELOPMENT ASSISTANCE.— sistance by the Overseas Private Investment bly, and the media, including cessation of (1) IN GENERAL.—Of the amounts made Corporation, and assistance by the Trade and harassment of journalists; available for fiscal years 2000, 2001, and 2002 Development Agency; and (D) has released the remaining individuals to carry out chapter 1 of part I of the For- (B) does not include disaster relief assist- who have been imprisoned without due proc- eign Assistance Act of 1961 (22 U.S.C. 2151 et ance, refugee assistance, or narcotics control ess or for political reasons; seq.), not less than $10,000,000 for fiscal year assistance under chapter 8 of part I of the (E) is continuing to provide access for inde- 2000, not less than $12,000,000 for fiscal year Foreign Assistance Act of 1961 (22 U.S.C. 2291 pendent international human rights mon- 2001, and not less than $15,000,000 for fiscal et seq.). itors; year 2002 should be available for assistance (b) PROHIBITION ON MILITARY ASSISTANCE (F) has repealed all decrees and laws that— described in paragraph (2) for Nigeria. OR ARMS TRANSFERS.— (i) grant undue powers to the military; (2) ASSISTANCE DESCRIBED.— (1) IN GENERAL.—Military assistance (in- (ii) suspend the constitutional protection (A) IN GENERAL.—The assistance described cluding funds previously appropriated for of fundamental human rights; in this paragraph is assistance provided to military assistance) or arms transfers shall (iii) allow indefinite detention without nongovernmental organizations for the pur- not be provided to Nigeria. charge, including the State of Security (De- pose of promoting democracy, good govern- (2) MILITARY ASSISTANCE OR ARMS TRANS- tention of Persons) Decree No. 2 of 1984; or ance, and the rule of law in Nigeria. FERS.—The term ‘‘military assistance or (iv) create special tribunals that do not re- (B) ADDITIONAL REQUIREMENT.—In provid- arms transfers’’ means— spect international standards of due process; ing assistance under this subsection, the Ad- (A) assistance under chapter 2 of part II of and ministrator of the United States Agency for the Foreign Assistance Act of 1961 (22 U.S.C. (G) has ensured that the policing of the oil International Development shall ensure that 2311 et seq.) (relating to military assistance), producing communities is carried out with- nongovernmental organizations receiving including the transfer of excess defense arti- out excessive use of force or systematic and such assistance represent a broad cross-sec- cles under section 516 of that Act (22 U.S.C. widespread human rights violations against tion of society in Nigeria and seek to pro- 2321j); the civilian population of the area; or mote democracy, human rights, and account- (B) assistance under chapter 5 of part II of (2) it is in the national interests of the able government. the Foreign Assistance Act of 1961 (22 U.S.C. United States to waive the prohibition in (3) GRANTS FOR PROMOTION OF HUMAN 2347 et seq.) (relating to international mili- section 5 or 6, as the case may be. RIGHTS.—Of the amounts made available for tary education and training); (c) CONGRESSIONAL NOTIFICATION.—Notifi- fiscal years 2000, 2001, and 2002 under para- (C) assistance under the ‘‘Foreign Military cation under this subsection is written noti- graph (1), not less than $500,000 for each such Financing Program’’ under section 23 of the fication of the determination of the Presi- fiscal year should be available to the United Arms Export Control Act (22 U.S.C. 2763); or dent under subsection (b) provided to the ap- States Agency for International Develop- (D) the transfer of defense articles, defense propriate congressional committees not less ment for the purpose of providing grants of services, or design and construction services than 15 days in advance of any waiver of any not more than $25,000 each to support indi- under the Arms Export Control Act (22 prohibition in section 5 or 6, subject to the viduals or nongovernmental organizations U.S.C. 2751 et seq.), including defense articles procedures applicable to reprogramming no- that seek to promote, directly or indirectly, and defense services licensed or approved for tifications under section 634A of the Foreign the advancement of human rights in Nigeria. export under section 38 of that Act (22 U.S.C. Assistance Act of 1961 (22 U.S.C. 2394–1). (b) USIA INFORMATION ASSISTANCE.—Of the 2778). SEC. 8. REPORT ON CORRUPTION IN NIGERIA. amounts made available for fiscal years 2000, (c) REQUIREMENT TO OPPOSE MULTILATERAL Not later than 3 months after the date of 2001, and 2002 under subsection (a)(1), not less ASSISTANCE.— the enactment of this Act, and annually for than $1,000,000 for fiscal year 2000, $1,500,000 (1) IN GENERAL.—The Secretary of the the next 5 years thereafter, the Secretary of for fiscal year 2001, and $2,000,000 for fiscal Treasury shall instruct the United States ex- State shall prepare and submit to the appro- year 2002 should be made available to the ecutive director to each of the international priate congressional committees, and make United States Information Agency for the financial institutions described in paragraph available to the public, a report on corrup- purpose of supporting its activities in Nige- (2) to use the voice and vote of the United tion in Nigeria. This report shall include— ria, including the promotion of greater States to oppose any assistance to the Gov- (1) evidence of corruption by government awareness among Nigerians of constitutional ernment of Nigeria. officials in Nigeria; democracy, the rule of law, and respect for (2) INTERNATIONAL FINANCIAL INSTITUTIONS (2) the impact of corruption on the delivery human rights. DESCRIBED.—The international financial in- of government services in Nigeria; S690 CONGRESSIONAL RECORD — SENATE January 19, 1999 (3) the impact of corruption on United SEC. 2. EXAMINATIONS BY CLINICAL SOCIAL ices performed by a clinical social worker (as States business interests in Nigeria; WORKERS FOR FEDERAL WORKER defined in paragraph (1))’’ and inserting (4) the impact of advance fee fraud, and COMPENSATION CLAIMS. ‘‘such services and such services and supplies other fraudulent business schemes originat- Section 8101 of title 5, United States Code, furnished as an incident to such services per- ing in Nigeria, on United States citizens; and is amended— formed by a clinical social worker (as de- (5) the impact of corruption on Nigeria’s (1) in paragraph (2) by striking ‘‘and osteo- fined in paragraph (1))’’. foreign policy. pathic practitioners’’ and inserting ‘‘osteo- (c) CLINICAL SOCIAL WORKER SERVICES NOT SEC. 9. APPROPRIATE CONGRESSIONAL COMMIT- pathic practitioners, and clinical social TO BE INCLUDED IN INPATIENT HOSPITAL TEES DEFINED. workers’’; and SERVICES.—Section 1861(b)(4) of the Social Except as provided in section 6, in this Act, (2) in paragraph (3) by striking ‘‘and osteo- Security Act (42 U.S.C. 1395x(b)(4)) is amend- the term ‘‘appropriate congressional com- pathic practitioners’’ and inserting ‘‘osteo- ed by striking ‘‘and services’’ and inserting mittees’’ means— pathic practitioners, and clinical social ‘‘clinical social worker services, and serv- (1) the Committee on International Rela- workers’’. ices’’. tions of the House of Representatives; (d) TREATMENT OF SERVICES FURNISHED IN (2) the Committee on Foreign Relations of By Mr. INOUYE: INPATIENT SETTING.—Section 1832(a)(2)(B)(iii) the Senate; and S. 232. A bill to amend title XVIII of of the Social Security Act (42 U.S.C. (3) the Committees on Appropriations of the Social Security Act to provide im- 1395k(a)(2)(B)(iii)) is amended by striking ‘‘and services’’ and inserting ‘‘clinical social the House of Representatives and the Senate. proved reimbursement for clinical so- worker services, and services’’. SEC. 10. TERMINATION DATE. cial worker services under the medi- (e) EFFECTIVE DATE.—The amendments The provisions of this Act shall terminate care program, and for other purposes; made by this section shall apply to payments on September 30, 2004. to the Committee on Finance. made for clinical social worker services fur- nished on or after January 1, 2000. By Mr. INOUYE: THE CLINICAL SOCIAL WORKER ACT OF 1999 S. 230. A bill to amend chapter 81 of Mr. INOUYE. Mr. President, today I By Mr. INOUYE: title 5, United States Code, to author- am introducing legislation to amend S. 233. A bill to amend title VII of the ize the use of clinical social workers to Title XVIII of the Social Security Act Public Health Service Act to ensure conduct evaluations to determine to correct discrepancies in the reim- that social work students of social work-related emotional and mental ill- bursement of clinical social workers work schools are eligible for support nesses; to the Committee on Govern- covered through Medicare, Part B. The under the certain programs to assist mental Affairs. three proposed changes contained in individuals in pursuing health careers CLINICAL SOCIAL WORKERS’ RECOGNITION ACT this legislation clarify the current pay- and programs of grants for training OF 1999 ment process for clinical social work- projects in geriatrics, and to establish Mr. INOUYE. Mr. President, today I ers and establish a reimbursement a social work training program; to the rise to introduce the Clinical Social methodology for the profession that is Committee on Health, Education, Workers’ Recognition Act of 1999 to similar to other health care profes- Labor, and Pensions. correct an outstanding problem in the sionals reimbursed through the Medi- AMENDMENT TO TITLE VII OF THE PUBLIC Federal Employees Compensation Act. care program. HEALTH SERVICE ACT This bill will also provide clinical so- First, this legislation sets payment Mr. INOUYE. Mr. President, on be- cial workers the recognition they de- for clinical social worker services ac- half of our nation’s clinical social serve as independent providers of qual- cording to a fee schedule established by workers, I am introducing legislation ity mental health care services. the Secretary. Second, it explicitly to amend the Public Health Service Clinical social workers are author- states that services and supplies fur- Act. This legislation would (1) estab- ized to independently diagnose and nished by a clinical social worker are a lish a new social work training pro- treat mental illnesses through public covered Medicare expense, just as these gram; (2) ensure that social work stu- and private health insurance plans services are covered for other mental dents are eligible for support under the across the Nation. However, Title V, health professionals in Medicare. Health Careers Opportunity Program; United States Code, does not permit Third, the bill allows clinical social (3) provide social work schools with eli- the use of mental health evaluations workers to be reimbursed for services gibility for support under the Minority conducted by clinical social workers provided to a client who is hospital- Centers of Excellence programs; (4) for use as evidence in determining permit schools offering degrees in so- workers’ compensation claims brought ized. Clinical social workers are valued cial work to obtain grants for training by Federal employees. The bill I am in- members of our health care provider projects in geriatrics; and (5) ensure troducing corrects this problem. that social work is recognized as a pro- It is a sad irony that Federal employ- team. They are legally regulated in fession under the Public Health Main- ees may select a clinical social worker every state of the nation and are recog- nized as independent providers of men- tenance Organization (HMO) Act. through their health plans to provide Despite the impressive range of serv- mental health services, but may not go tal health care throughout the health care system. I believe it is time to cor- ices social workers provide to people of to this professional for workers’ com- this nation, particularly our elderly, pensation evaluations. The failure to rect the disparate reimbursement treatment of this profession under disadvantaged and minority popu- recognize the validity of evaluations lations, few federal programs exist to provided by clinical social workers un- Medicare. Mr. President, I ask unanimous con- provide opportunities for social work necessarily limits Federal employees’ training in health and mental health selection of a provider to conduct the sent that the text of this bill be printed in the RECORD. care. This legislation builds on the workers’ compensation mental health health professional legislation enacted evaluation and may well impose an There being no objection, the bill was ordered to be printed in the RECORD, as by the 102d Congress enabling schools undue burden on Federal employees of social work to apply for Acquired where clinical social workers are the follows: S. 232 Immune Deficiency Syndrome (AIDS) only available providers of mental training funding and resources to es- Be it enacted by the Senate and House of health care. tablish collaborative relationships Mr. President, I ask unanimous con- Representatives of the United States of America with rural health care providers and sent that the text of this bill be printed in Congress assembled, schools of osteopathic medicine. This in the RECORD. SECTION 1. IMPROVED REIMBURSEMENT FOR There being no objection, the bill was CLINICAL SOCIAL WORKER SERV- bill would provide funding for ICES UNDER MEDICARE. traineeships and fellowships for indi- ordered to be printed in the RECORD, as (a) IN GENERAL.—Section 1833(a)(1)(F)(ii) of follows: viduals who plan to specialize in, prac- the Social Security Act (42 U.S.C. tice, or teach social work, or for oper- S. 230 1395l(a)(1)(F)(ii)) is amended to read as fol- ating approved social work training Be it enacted by the Senate and House of Rep- lows: ‘‘(ii) the amount determined by a fee programs; it would help disadvantaged resentatives of the United States of America in schedule established by the Secretary,’’. Congress assembled, (b) DEFINITION OF CLINICAL SOCIAL WORKER students earn graduate degrees in so- SECTION 1. SHORT TITLE. SERVICES EXPANDED.—Section 1861(hh)(2) of cial work with a concentration in This Act may be cited as the ‘‘Clinical So- the Social Security Act (42 U.S.C. health or mental health; it would pro- cial Workers’ Recognition Act of 1999’’. 1395x(hh)(2)) is amended by striking ‘‘serv- vide new resources and opportunities in January 19, 1999 CONGRESSIONAL RECORD — SENATE S691 social work training for minorities; pital, school offering programs in social THE NATIONAL ACADEMIES OF PRACTICE and it would encourage schools of so- work, or to or with a public or private non- RECOGNITION ACT OF 1999 cial work to expand program in geri- profit entity (which the Secretary has deter- Mr. INOUYE. Mr. President, today I atrics. Finally, the recognition of so- mined is capable of carrying out such grant am introducing legislation that would or contract)— provide a federal charter for the Na- cial work as a profession merely codi- ‘‘(1) to plan, develop, and operate, or par- fies current social work practice and ticipate in, an approved social work training tional Academies of Practice. This or- reflects modifications made by the program (including an approved residency or ganization represents outstanding med- Medicare HMO legislation. internship program) for students, interns, ical professionals who have made sig- I believe it is important to ensure residents, or practicing physicians; nificant contributions to the practice that the special expertise and skill so- ‘‘(2) to provide financial assistance (in the of applied psychology, medicine, den- cial workers possess continue to be form of traineeships and fellowships) to stu- tistry, nursing, optometry, podiatry, available to the citizens of this nation. dents, interns, residents, practicing physi- social work, and veterinary medicine. cians, or other individuals, who are in need When fully established, each of the This legislation, by providing financial thereof, who are participants in any such assistance to schools of social work program, and who plan to specialize or work nine academies will possess 100 distin- and social work students, recognizes in the practice of social work; guished practitioners selected by their the long history and critical impor- ‘‘(3) to plan, develop, and operate a pro- peers. This umbrella organization will tance of the services provided by social gram for the training of individuals who plan be able to provide the Congress of the work professionals. In addition, since to teach in social work training programs; United States and the executive branch social workers have provided quality and with considerable health policy exper- mental health services to our citizens ‘‘(4) to provide financial assistance (in the tise, especially from the perspective of form of traineeships and fellowships) to indi- those individuals who are in the fore- for a long time and continue to be at viduals who are participants in any such pro- the forefront of establishing innovative gram and who plan to teach in a social work front of actually providing health care. programs to service our disadvantaged training program. As we continue to grapple with the many complex issues surrounding the populations, I believe it is time to pro- ‘‘(b) ACADEMIC ADMINISTRATIVE UNITS.— vide them with the recognition they ‘‘(1) IN GENERAL.—The Secretary may make delivery of health care services, it is clearly earned and deserve. grants to or enter into contracts with clearly in our best interest to ensure Mr. President, I ask unanimous con- schools offering programs in social work to that the Congress has systematic ac- sent that the text of this bill be printed meet the costs of projects to establish, main- cess to the recommendations of an in the RECORD. tain, or improve academic administrative interdisciplinary body of health care There being no objection, the bill was units (which may be departments, divisions, practitioners. or other units) to provide clinical instruc- ordered to be printed in the RECORD, as Mr. President, I ask unanimous con- tion in social work. sent that the text of this bill be printed follows: ‘‘(2) PREFERENCE IN MAKING AWARDS.—In S. 233 making awards of grants and contracts in the RECORD. There being no objection, the bill was Be it enacted by the Senate and House of under paragraph (1), the Secretary shall give Representatives of the United States of America preference to any qualified applicant for ordered to be printed in the RECORD, as in Congress assembled, such an award that agrees to expend the follows: SECTION 1. SOCIAL WORK STUDENTS. award for the purpose of— S. 234 ‘‘(A) establishing an academic administra- (a) HEALTH PROFESSIONS SCHOOL.—Section Be it enacted by the Senate and House of 736(g)(1)(A) of the Public Health Service Act, tive unit for programs in social work; or Representatives of the United States of America as amended by Public Law 105-392, is amend- ‘‘(B) substantially expanding the programs in Congress assembled, of such a unit. ed by striking ‘‘graduate program in behav- SECTION 1. CHARTER. ioral or mental health’’ and inserting ‘‘grad- ‘‘(c) DURATION OF AWARD.—The period dur- The National Academies of Practice orga- uate program in behavioral or mental health ing which payments are made to an entity nized and incorporated under the laws of the including a school offering graduate pro- from an award of a grant or contract under District of Columbia, is hereby recognized as grams in clinical social work, or programs in subsection (a) may not exceed 5 years. The such and is granted a Federal charter. social work’’. provision of such payments shall be subject SEC. 2. CORPORATE POWERS. (b) SCHOLARSHIPS, GENERALLY.—Section to annual approval by the Secretary of the The National Academies of Practice (re- 737(d)(1) of the Public Health Service Act, as payments and subject to the availability of ferred to in this Act as the ‘‘corporation’’) amended by Public Lae 105-392, is amended appropriations for the fiscal year involved to shall have only those powers granted to it by striking ‘‘mental health practice’’ and in- make the payments. through its bylaws and articles of incorpora- serting ‘‘mental health practice including ‘‘(d) FUNDING.— tion filed in the State in which it is incor- graduate programs in clinical psychology, ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— porated and subject to the laws of such graduate programs in clinical social work, or For the purpose of carrying out this section, State. programs in social work’’. there is authorized to be appropriated SEC. 3. PURPOSES OF CORPORATION. (c) FACULTY POSITIONS.—Section 738(a)(3) $10,000,000 for each of the fiscal years 2000 The purposes of the corporation shall be to of the Public Health Service Act, as amended through 2002. honor persons who have made significant by Public Law 105-392, is amended by strik- ‘‘(2) ALLOCATION.—Of the amounts appro- contributions to the practice of applied psy- ing ‘‘offering graduate programs in behav- priated under paragraph (1) for a fiscal year, chology, dentistry, medicine, nursing, op- ioral and mental health’’ and inserting ‘‘of- the Secretary shall make available not less tometry, osteopathy, podiatry, social work, fering graduate programs in behavioral and than 20 percent for awards of grants and con- veterinary medicine, and other health care mental health including graduate programs tracts under subsection (b).’’; and professions, and to improve the practices in in clinical psychology, graduate programs in (3) in section 770A (as so redesignated) by such professions by disseminating informa- clinical social work, or programs in social inserting ‘‘other than section 770,’’ after tion about new techniques and procedures. work’’. ‘‘carrying out this subpart,’’. SEC. 4. SERVICE OF PROCESS. SEC. 2. GERIATRICS TRAINING PROJECTS. SEC. 4. CLINICAL SOCIAL WORKER SERVICES. With respect to service of process, the cor- Section 753(b)(1) of the Public Health Serv- Section 1302 of the Public Health Service poration shall comply with the laws of the ice Act, as amended by Public Law 105-392, is Act (42 U.S.C. 300e–1) is amended— State in which it is incorporated and those amended by inserting ‘‘schools offering de- (1) in paragraphs (1) and (2), by inserting States in which it carries on its activities in grees in social work,’’ after ‘‘teaching hos- ‘‘clinical social worker,’’ after ‘‘psycholo- furtherance of its corporate purposes. pitals,’’. gist,’’ each place it appears; SEC. 5. MEMBERSHIP. SEC. 3. SOCIAL WORK TRAINING PROGRAM. (2) in paragraph (4)(A), by striking ‘‘and Eligibility for membership in the corpora- Subpart 2 of part E of title VII of the Pub- psychologists’’ and inserting ‘‘psychologists, tion and the rights and privileges of mem- lic Health Service Act, as amended by Public and clinical social workers’’; and bers shall be as provided in the bylaws of the Law 105-392, is amended— (3) in paragraph (5), by inserting ‘‘clinical corporation. (1) by redesignating section 770 as section social work,’’ after ‘‘psychology,’’. SEC. 6. BOARD OF DIRECTORS; COMPOSITION; 770A; RESPONSIBILITIES. (2) by inserting after section 769, the fol- By Mr. INOUYE: The composition and the responsibilities of lowing: the board of directors of the corporation ‘‘SEC. 770. SOCIAL WORK TRAINING PROGRAM. S. 234. A bill to recognize the organi- shall be as provided in the articles of incor- ‘‘(a) TRAINING GENERALLY.—The Secretary zation known as the National Acad- poration of the corporation and in conform- may make grants to, or enter into contracts emies of Practice; to the Committee on ity with the laws of the State in which it is with, any public or nonprofit private hos- the Judiciary. incorporated. S692 CONGRESSIONAL RECORD — SENATE January 19, 1999 SEC. 7. OFFICERS OF THE CORPORATION. SEC. 15. TERMINATION. (3) in subsection (c)(1), by inserting ‘‘, or The officers of the corporation and the If the corporation fails to comply with any schools that offer graduate programs in pro- election of such officers shall be as provided of the restrictions or provisions of this Act fessional psychology’’ after ‘‘veterinary med- in the articles of incorporation of the cor- the charter granted by this Act shall termi- icine’’. poration and in conformity with the laws of nate. (b) LOAN PROVISIONS.—Section 722 of the the State in which it is incorporated. Public Health Service Act (42 U.S.C. 292r) is SEC. 8. RESTRICTIONS. By Mr. INOUYE: amended— (a) USE OF INCOME AND ASSETS.—No part of S. 235. A bill to amend title VII of the (1) in subsection (b)(1), by inserting ‘‘, or to the income or assets of the corporation shall Public Health Service Act to make cer- a graduate degree in professional psychol- inure to any member, officer, or director of tain graduate programs in professional ogy’’ after ‘‘or doctor of veterinary medicine the corporation or be distributed to any such psychology eligible to participate in or an equivalent degree’’; person during the life of this charter. Noth- various health professions loan pro- (2) in subsection (c), in the matter preced- ing in this subsection shall be construed to grams; to the Committee on Health, ing paragraph (1), by inserting ‘‘, or at a prevent the payment of reasonable com- Education, Labor, and Pensions. school that offers a graduate program in pro- pensation to the officers of the corporation fessional psychology’’ after ‘‘veterinary med- THE U.S. PUBLIC HEALTH SERVICE ACT or reimbursement for actual necessary ex- icine’’; and AMENDMENT ACT OF 1999 penses in amounts approved by the board of (3) in subsection (k)— directors. Mr. INOUYE. Mr. President, I rise to (A) in the matter preceding paragraph (1), (b) LOANS.—The corporation shall not introduce legislation today to modify by striking ‘‘or podiatry’’ and inserting ‘‘po- make any loan to any officer, director, or Title VII of the U.S. Public Health diatry, or professional psychology’’; and employee of the corporation. Service Act in order to provide stu- (B) in paragraph (4), by striking ‘‘or (c) POLITICAL ACTIVITY.—The corporation, dents enrolled in graduate psychology podiatric medicine’’ and inserting ‘‘podiatric any officer, or any director of the corpora- programs with the opportunity to par- medicine, or professional psychology’’. tion, acting as such officer or director, shall ticipate in various health professions SEC. 2. GENERAL PROVISIONS. not contribute to, support, or otherwise par- loan programs (a) HEALTH PROFESSIONS DATA.—Section ticipate in any political activity or in any Providing students enrolled in grad- 792(a) of the Public Health Service Act (42 manner attempt to influence legislation. uate psychology programs with eligi- U.S.C. 295k(a)) is amended by striking ‘‘clini- (d) ISSUANCE OF STOCK AND PAYMENT OF cal’’ and inserting ‘‘professional’’. DIVIDENDS.—The corporation shall have no bility for financial assistance in the (b) PROHIBITION AGAINST DISCRIMINATION ON power to issue any shares of stock nor to de- form of loans, loan guarantees, and BASIS OF SEX.—Section 794 of the Public clare or pay any dividends. scholarships will facilitate a much Health Service Act (42 U.S.C. 295m) is (e) CLAIMS OF FEDERAL APPROVAL.—The needed infusion of behavioral science amended in the matter preceding paragraph corporation shall not claim congressional expertise into our public health com- (1) by striking ‘‘clinical’’ and inserting ‘‘pro- approval or Federal Government authority munity of providers. There is a growing fessional’’. for any of its activities. recognition of the valuable contribu- (c) DEFINITIONS.—Section 799B(1)(B) of the SEC. 9. LIABILITY. tion that is being made by our nation’s Public Health Service Act (as redesignated The corporation shall be liable for the acts by section 106(a)(2)(E) of the Health Profes- psychologists toward solving some of sions Education Partnerships Act of 1998) is of its officers and agents when acting within our nation’s most distressing problems. the scope of their authority. amended by striking ‘‘clinical’’ each place it The participation of students from appears and inserting ‘‘professional’’. SEC. 10. MAINTENANCE AND INSPECTION OF all backgrounds and clinical disciplines BOOKS AND RECORDS. (a) BOOKS AND RECORDS OF ACCOUNT.—The is vital to the success of health care By Mr. COVERDELL (for himself corporation shall keep correct and complete training. The Title VII programs play a and Mr. BROWNBACK): books and records of account and shall keep significant role in providing financial S. 227. A bill to prohibit the expendi- minutes of any proceeding of the corporation support for the recruitment of minori- ture of Federal funds to provide or sup- involving any of its members, the board of ties, women and individuals from eco- port programs to provide individuals directors, or any committee having author- nomically disadvantaged backgrounds. with hypodermic needles or syringes ity under the board of directors. Minority therapists have an advantage for the use of illegal drugs; to the Com- (b) NAMES AND ADDRESSES OF MEMBERS.— in the provision of critical services to The corporation shall keep at its principal mittee on Health, Education, Labor, office a record of the names and addresses of minority populations because often and Pensions. all members having the right to vote in any they can communicate with clients in This bill would effectively continue proceeding of the corporation. their own language and cultural frame- and make permanent the one year ban (c) RIGHT TO INSPECT BOOKS AND work. Minority therapists are more imposed through the appropriations RECORDS.—All books and records of the cor- likely to work in community settings, process. Rather than revisit this issue poration may be inspected by any member where ethnic minority and economi- each year, this bill would establish a having the right to vote, or by any agent or cally disadvantaged individuals are firm federal policy against providing attorney of such member, for any proper pur- most likely to seek care. It is critical pose, at any reasonable time. free needles to drug addicts. Health and (d) APPLICATION OF STATE LAW.—Nothing that continued support be provided for Human Services Secretary Donna in this section shall be construed to con- the training of individuals who provide Shalala is on record strongly endorsing travene any applicable State law. health care services to underserved needle exchange programs and encour- SEC. 11. ANNUAL REPORT. communities. aging local communities to use their The corporation shall report annually to Mr. President, I ask unanimous con- own dollars to fund needle exchange the Congress concerning the activities of the sent that the text of this bill be printed programs. This legislation is therefore corporation during the preceding fiscal year. in the RECORD. needed to foreclose any temptation the Such annual report shall be submitted at the There being no objection, the bill was Administration may feel to federally same time as is the report of the audit for ordered to be printed in the RECORD, as fund needle exchanges in the future. such fiscal year required by section 3 of the follows: Act referred to in section 11 of this Act. The General Barry McCaffrey, Director of S. 235 report shall not be printed as a public docu- the Office of National Drug Control ment. Be it enacted by the Senate and House of Rep- Policy, has laid out the strong case resentatives of the United States of America in SEC. 12. RESERVATION OF RIGHT TO AMEND OR against needle exchange programs. Congress assembled, REPEAL CHARTER. Handing out needles to drug users The right to alter, amend, or repeal this SECTION 1. PARTICIPATION IN VARIOUS HEALTH PROFESSIONS LOAN PROGRAMS. sends a message that the government Act is expressly reserved to the Congress. (a) LOAN AGREEMENTS.—Section 721 of the is condoning drug use. It undermines SEC. 13. DEFINITION. Public Health Service Act (42 U.S.C. 292q) is our anti-drug message and undercuts In this Act, the term ‘‘State’’ includes the amended— all of our drug prevention efforts. District of Columbia, the Commonwealth of (1) in subsection (a), by inserting ‘‘, or any A report by General McCaffrey’s of- Puerto Rico, and the territories and posses- public or nonprofit school that offers a grad- sions of the United States. fice reviewed the world’s largest needle uate program in professional psychology’’ exchange program in Vancouver, Brit- SEC. 14. TAX-EXEMPT STATUS. after ‘‘veterinary medicine’’; The corporation shall maintain its status (2) in subsection (b)(4), by inserting ‘‘, or to ish Colombia, in operation since 1988. It as an organization exempt from taxation as a graduate degree in professional psychol- found the program to be a failure. HIV provided in the Internal Revenue Code of 1986 ogy’’ after ‘‘or doctor of veterinary medicine infections were higher among users of or any corresponding similar provision. or an equivalent degree’’; and free needles than those without access January 19, 1999 CONGRESSIONAL RECORD — SENATE S693 to them. The death rate from drugs what looks like severe depression in an ‘‘(2) INSTITUTIONS.—In order to receive a jumped from 18 a year in 1988 to 150 in elderly person might actually be with- grant or contract under this section, an in- 1992. In addition, higher drug use fol- drawal related to hearing loss, or what stitution shall submit an application to the lowed implementation of the program. appears to be poor academic motiva- Secretary at such time, in such form, and tion in a child recently relocated from containing such information as the Sec- Dr. James L. Curtis of New York, retary shall require, including a certification who has studied needle exchange pro- Southeast Asia might be reflective of a that such institution— grams, was quoted in the Washington cultural value of reserve rather than a ‘‘(A) is an entity, approved by the State, Times stating that the programs disinterest in academic learning. Each that provides psychological services in medi- ‘‘should be recognized as reckless ex- of these situations requires very dif- cally underserved areas or to medically un- perimentation on human beings, the ferent interventions, of course, and derserved populations (including entities unproven hypothesis being that it pre- specialized assessment skills. that care for the mentally retarded, mental vents AIDS.’’ Domestic violence is not just a prob- health institutions, and prisons); According to recent scientific stud- lem for the criminal justice system, it ‘‘(B) will use amounts provided to such in- stitution under this section to provide finan- ies, eight persons a day are infected is a significant public health problem. A single aspect of this issue, domestic cial assistance in the form of fellowships to with the HIV virus by using borrowed qualified individuals who meet the require- needles, while 352 people start using violence against women, results in al- ments of subparagraphs (A) through (C) of heroin each day and 4,000 die every most 100,000 days of hospitalization, paragraph (1); year from heroin-related causes other 30,000 emergency room visits and 40,000 ‘‘(C) will not use in excess of 10 percent of than HIV. Far more addicts die of drug visits to physicians each year. Rates of amounts provided under this section to pay overdoses and related violence than child and spouse abuse in rural areas for the administrative costs of any fellow- from AIDS. It is wrong to aid and abet are particularly high as are the rates of ship programs established with such funds; and those deaths by handing out free nee- alcohol abuse and depression in adoles- cents. A post-doctoral fellowship pro- ‘‘(D) will provide any other information or dles to drug addicts. We should not be gram in psychology of the rural popu- assurance as the Secretary determines ap- encouraging higher rates of heroin use. lations could be of special benefit in propriate. Therefore, I hope my colleagues will ‘‘(c) CONTINUED PROVISION OF SERVICES.— addressing the problems. join me in making permanent the pro- Any individual who receives a grant or fel- Given the changing demographics of lowship under this section shall certify to hibition on federal funding and support the nation—the increasing life span of needle giveaway programs. the Secretary that such individual will con- and numbers of the elderly, the rising tinue to provide the type of services for By Mr. INOUYE: percentage of minority populations which such grant or fellowship is awarded for S. 236. A bill to amend title VII of the within the country, as well as an in- at least 1 year after the term of the grant or fellowship has expired. Public Health Service Act to establish creased recognition of the long-term sequelae of violence and abuse—and ‘‘(d) REGULATIONS.—Not later than 180 days a psychology post-doctoral fellowship after the date of enactment of this section, program, and for other purposes; to the given the demonstrated success and ef- fectiveness of these kinds of specialized the Secretary shall promulgate regulations Committee on Health, Education, necessary to carry out this section, includ- training programs, it is incumbent Labor, and Pensions. ing regulations that define the terms ‘medi- upon us to encourage participation in THE PUBLIC HEALTH SERVICE ACT OF 1999 cally underserved areas’ or ‘medically post-doctoral fellowships that respond unserved populations’. Mr. INOUYE. Mr. President, I am in- to the needs of the nation’s under- ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— troducing legislation today to amend served. There are authorized to be appropriated to Title VII of the Public Health Service Mr. President, I ask unanimous con- carry out this section, $5,000,000 for each of Act to establish a psychology post-doc- sent that the text of this bill be printed the fiscal years 2000 through 2002.’’. toral program. in the RECORD. Psychologists have made a unique There being no objection, the bill was By Mr. INOUYE: S. 237. A bill to allow the psychiatric contribution in serving the nation’s ordered to be printed in the RECORD, as medically underserved populations. Ex- follows: or psychological examinations required pertise in behavioral science is useful S. 236 under chapter 313 of title 18, United in addressing many of our most dis- Be it enacted by the Senate and House of States Code, relating to offenders with tressing concerns such as violence, ad- Representatives of the United States of America mental disease or defect, to be con- diction, mental illness, adolescent and in Congress assembled, ducted by a clinical social worker; to child behavioral disorders, and family SECTION 1. GRANTS FOR FELLOWSHIPS IN PSY- the Committee on the Judiciary. disruption. Establishment of a psychol- CHOLOGY. THE PSYCHIATRIC AND PSYCHOLOGICAL Part E of title VII of the Public Health EXAMINATIONS ACT OF 1999 ogy post-doctoral program could be Service Act (42 U.S.C. 294o et seq.) is amend- most effective in finding solutions to Mr. INOUYE. Mr. President, today I ed by adding at the end the following: introduce legislation to amend Title 18 these pressing societal issues. ‘‘SEC. 779. GRANTS FOR FELLOWSHIPS IN PSY- Similar programs supporting addi- CHOLOGY. of the United States Code to allow our tional, specialized training in tradi- ‘‘(a) IN GENERAL.—The Secretary shall es- nation’s clinical social workers to pro- tionally underserved settings or with tablish a psychology post-doctoral fellowship vide their mental health expertise to underserved populations have been program to make grants to and enter into the federal judiciary. contracts with eligible entities to encourage I feel that the time has come to allow demonstrated to be successful in pro- the provision of psychological training and viding services to those same under- our nation’s judicial system to have ac- services in underserved treatment areas. cess to a wide range of behavioral served during the years following the ‘‘(b) ELIGIBLE ENTITIES.— training experience. For example, men- ‘‘(1) INDIVIDUALS.—In order to receive a science and mental health expertise. I tal health professional who have par- grant under this section an individual shall am confident that the enactment of ticipated in these specialized federally submit an application to the Secretary at this legislation would be very much in funded programs have tended not only such time, in such form, and containing such our nation’s best interest. information as the Secretary shall require, to meet their pay back obligations, but Mr. President, I ask unanimous con- including a certification that such sent that the text of this bill be printed have continued to work in the public individual— sector or with the underserved popu- in the RECORD. ‘‘(A) has received a doctoral degree There being no objection, the bill was lations with whom they have been through a graduate program in psychology ordered to be printed in the RECORD, as trained to work. provided by an accredited institution at the While the doctorate in psychology time such grant is awarded; follows: provides broad based knowledge and ‘‘(B) will provide services in a medically S. 237 mastery in a wide variety of clinical underserved population during the period of Be it enacted by the Senate and House of Rep- skills, the specialized post-doctoral fel- such grant; resentatives of the United States of America in ‘‘(C) will comply with the provisions of Congress assembled, lowship programs develop particular subsection (c); and SECTION 1. EXAMINATIONS BY CLINICAL SOCIAL diagnostic and treatment skills re- ‘‘(D) will provide any other information or WORKERS. quired to effectively respond to these assurances as the Secretary determines ap- Section 4247(b) of title 18, United States underserved populations. For example, propriate. Code, is amended, in the first sentence, by S694 CONGRESSIONAL RECORD — SENATE January 19, 1999 striking ‘‘psychiatrist or psychologist’’ and S. 239. A bill to amend title 38, quality, and the Perkins County rural inserting ‘‘psychiatrist, psychologist, or United States Code, to revise certain water project is an effort to help pro- clinical social worker’’. provisions relating to the appointment vide clean water—a commodity most of of professional psychologists in the By Mr. INOUYE: us take for granted—to the people of S. 238. A bill to amend title 10, Veterans Health Administration, and Perkins County, South Dakota. I am a United States Code, to increase the for other purposes; to the Committee strong believer in the federal govern- grade provided for the heads of the on Veterans’ Affairs. ment’s role in rural water delivery, and nurse corps of the Armed Forces; to the THE PERKINS COUNTY RURAL WATER SYSTEM I hope to continue to advance that Committee on Armed Services. ACT OF 1999 agenda both in South Dakota and Mr. JOHNSON. Mr. President, today I U.S. MILITARY CHIEF NURSE CORPS AMENDMENT around the country. I urge my col- am proud to introduce legislation to ACT OF 1999 leagues to support this important rural Mr. INOUYE. Mr. President, today I authorize a critically important rural water legislation, and I look forward to introduce an amendment that would water system in South Dakota, the working with my colleagues on the ‘‘Perkins County Rural Water System change the existing law regarding the Senate Energy and Natural Resources Act of 1999.’’ I am pleased to have my designated position and grade for the Committee to move forward on enact- good friend and colleague from South Chief Nurses of the United States ment as quickly as possible. Dakota, Senator DASCHLE, as an origi- Army, the United States Navy, and the Mr. President, I ask unanimous con- nal cosponsor of this important legisla- United States Air Force. Currently, the sent that the full text of this legisla- tion, which we introduced during the Chief Nurses of the three branches of tion be printed in the RECORD. 105th. This legislation is also strongly the military are one-star general offi- There being no objection, the bill was supported by the State of South Da- cer grades; this law would change the ordered to be printed in the RECORD, as kota and local project sponsors, who current grade to Major General in the follows: have demonstrated that support by Army and Air Force and Rear Admiral S. 239 agreeing to substantial financial con- (upper half) in the Navy. Be it enacted by the Senate and House of Our military Chief Nurses have an tributions from the local level. Representatives of the United States of America During the 105th Congress the Per- awesome responsibility—their scope of in Congress assembled, kins County Rural Water System Act duties include peacetime and wartime SECTION 1. SHORT TITLE. was passed by the Senate Energy and health care doctrine, standards and This Act may be cited as the ‘‘Perkins Natural Resources Committee, as well policy for all nursing personnel within County Rural Water System Act of 1999’’. as the full Senate. Unfortunately, this their respective branches. They are re- SEC. 2. FINDINGS AND PURPOSES. legislation was caught up in part of a (a) FINDINGS.—Congress finds that— sponsible for 80,000 Army, 5,200 Navy, larger legislative package, but I am (1) there are insufficient water supplies of and 20,000 Air Force officer and enlisted hopeful the Senate will again support reasonable quality available to the members nursing personnel in the active, reserve this important drinking water project of the Perkins County Rural Water System and guard components of the military. and pass this legislation early this located in Perkins County, South Dakota, and the water supplies that are available do This level of responsibility certainly year. supports the need to change the grade not meet minimum health and safety stand- Like many parts of South Dakota, ards, thereby posing a threat to public for the Chief Nurses which would en- Perkins County has insufficient water sure that they have an appropriate health and safety; supplies of reasonable quality avail- (2) in 1977, the North Dakota State Legisla- voice in Defense Health Program exec- able, and the water supplies that are ture authorized and directed the State Water utive management. available do not meet the minimum Commission to conduct the Southwest Area Organizations are best served when health and safety standards, thereby Water Supply Study, which included water the leadership is composed of a mix of posing a threat to public health and service to a portion of Perkins County, specialties—of equal rank—who bring safety. South Dakota; their unique talents to the policy set- In addition to improving the health (3) amendments made by the Garrison Di- ting and decision-making process. I be- of residents in the region, I strongly version Unit Reformulation Act of 1986 (Pub- lic Law 101–294) authorized the Southwest lieve it is time to ensure that military believe that this rural drinking water health care organizations utilize the Pipeline project as an eligible project for delivery project will help to stabilize Federal cost share participation; expertise and unique contributions of the rural economy as well. Water is a (4) the Perkins County Rural Water Sys- the military Chief Nurses. basic commodity and is essential if we tem has continued to be recognized by the Mr. President, I request unanimous are to foster rural development in State of North Dakota, the Southwest Water consent that the text of this bill be many parts of rural South Dakota, in- Authority, the North Dakota Water Commis- printed in the RECORD. cluding the Perkins County area. sion, the Department of the Interior, and There being no objection, the bill was The ‘‘Perkins County Rural Water Congress as a component of the Southwest ordered to be printed in the RECORD, as System Act of 1999’’ authorizes the Bu- Pipeline Project; and (5) the best available, reliable, and safe follows: reau of Reclamation to construct a S. 238 rural and municipal water supply to serve Perkins County Rural Water System the needs of the Perkins County Rural Water Be it enacted by the Senate and House of Rep- providing service to approximately System, Inc., members is the waters of the resentatives of the United States of America in 2,500 people, including the communities Missouri River as delivered by the Southwest Congress assembled, of Lemmon and Bison, as well as rural Pipeline Project in North Dakota. SECTION 1. INCREASED GRADE FOR HEADS OF (b) PURPOSES.—The purposes of this Act NURSE CORPS. residents. The Perkins County Rural Water System is located in northwest- are— (a) ARMY.—Section 3069(b) of title 10, (1) to ensure a safe and adequate munici- United States Code, is amended by striking ern South Dakota along the South Da- kota/North Dakota border and it will pal, rural, and industrial water supply for out ‘‘brigadier general’’ in the second sen- the members of the Perkins County Rural tence and inserting in lieu thereof ‘‘major be an extension of an existing rural Water Supply System, Inc., in Perkins Coun- general’’. water system in North Dakota, the ty, South Dakota; (b) NAVY.—The first sentence of section Southwest Pipeline Project. The State (2) to assist the members of the Perkins 5150(c) of such title is amended— (1) by inserting ‘‘rear admiral (upper half) of South Dakota has worked closely County Rural Water Supply System, Inc., in in the case of an officer in the Nurse Corps with the State of North Dakota over developing safe and adequate municipal, or’’ after ‘‘for promotion to the grade of’’; the years on the Perkins County con- rural, and industrial water supplies; and and nection to the Southwest Pipeline (3) to promote the implementation of (2) by inserting ‘‘in the case of an officer in Project. A feasibility study completed water conservation programs by the Perkins the Medical Service Corps’’ after ‘‘rear admi- in 1994 looked at several alternatives County Rural Water System, Inc. ral (lower half)’’. for a dependable water supply, and the SEC. 3. DEFINITIONS. (c) AIR FORCE.—Section 8069(b) of such title In this Act: connection to the Southwest Pipeline is amended by striking out ‘‘brigadier gen- (1) FEASIBILITY STUDY.—The term ‘‘feasibil- eral’’ in the second sentence and inserting in Project is clearly the most feasible for ity study’’ means the study entitled ‘‘Fea- lieu thereof ‘‘major general’’. the Perkins County area. sibility Study for Rural Water System for Mr. President, South Dakota is Perkins County Rural Water System, Inc.’’, By Mr. INOUYE: plagued by water of exceeding poor as amended in March 1995. January 19, 1999 CONGRESSIONAL RECORD — SENATE S695

(2) PROJECT CONSTRUCTION BUDGET.—The (2) The water supply system shall contract for planning and construction of the water term ‘‘project construction budget’’ means to purchase its entire electric service re- supply system may not exceed an amount the description of the total amount of funds quirements, including the capacity and en- equal to 3 percent of the amount provided in that are needed for the construction of the ergy made available under subsection (a), the total project construction budget for the water supply system, as described in the fea- from a qualified preference power supplier portion of the project to be constructed in sibility study. that itself purchases power from the Western Perkins County, South Dakota. (3) PUMPING AND INCIDENTAL OPERATIONAL Area Power Administration. SEC. 12. AUTHORIZATION OF APPROPRIATIONS. REQUIREMENTS.—The term ‘‘pumping and in- (3) The rate schedule applicable to the ca- There are authorized to be appropriated— cidental operational requirements’’ means pacity and energy made available under sub- (1) $15,000,000 for the planning and con- all power requirements that are incidental to section (a) shall be the firm power rate struction of the water system under section the operation of intake facilities, pumping schedule of the Pick-Sloan Eastern Division 4; and stations, water treatment facilities, cooling of the Western Area Power Administration (2) such sums as are necessary to defray in- facilities, reservoirs, and pipelines to the in effect when the power is delivered by the creases in development costs reflected in ap- point of delivery of water by the Perkins Administration. propriate engineering cost indices after County Rural Water System to each entity (4) It shall be agreed by contract among— March 1, 1995. that distributes water at retail to individual (A) the Western Area Power Administra- users. tion; By Mr. INOUYE: (4) SECRETARY.—The term ‘‘Secretary’’ (B) the power supplier with which the S. 239. A bill to amend title 38, means the Secretary of the Interior, acting water supply system contracts under para- United States Code, to revise certain through the Commissioner of the Bureau of graph (2); provisions relating to the appointment Reclamation. (C) the power supplier of the entity de- of professional psychologists in the (5) WATER SUPPLY SYSTEM.—The term scribed in subparagraph (B); and ‘‘water supply system’’ means the Perkins (D) the Perkins County Rural Water Sys- Veterans Health Administration, and County Rural Water System, Inc., a non- tem, Inc.; for other purposes; to the Committee profit corporation, established and operated that in the case of the capacity and energy on Veterans’ Affairs. substantially in accordance with the fea- made available under subsection (a), the ben- THE VETERANS’ HEALTH ADMINISTRATION ACT sibility study. efit of the rate schedule described in para- OF 1999 SEC. 4. FEDERAL ASSISTANCE FOR WATER SUP- graph (3) shall be passed through to the Mr. INOUYE. Mr. President, I intro- PLY SYSTEM. water supply system, except that the power duce legislation today to amend Chap- (a) IN GENERAL.—The Secretary shall make supplier of the water supply system shall not ter 74 of Title 38, United States Code, grants to the water supply system for the be precluded from including, in the charges to revise certain provisions relating to Federal share of the costs of— of the supplier to the water system for the (1) the planning and construction of the the appointment of clinical and profes- electric service, the other usual and cus- sional psychologists in the Veterans water supply system; and tomary charges of the supplier. Health Administration (VHA). (2) repairs to existing public water dis- SEC. 7. NO LIMITATION ON WATER PROJECTS IN tribution systems to ensure conservation of STATES. The VHA has a long history of main- the resources and to make the systems func- This Act does not limit the authorization taining a staff of the very best health tional under the new water supply system. for water projects in South Dakota and care professionals to provide care to (b) SERVICE AREA.—The water supply sys- North Dakota under law in effect on or after those men and women who have served tem shall provide for safe and adequate mu- the date of enactment of this Act. our country in the Armed Forces. nicipal, rural, and industrial water supplies, SEC. 8. WATER RIGHTS. Recently, a quite distressing situa- mitigation of wetlands areas, repairs to ex- Nothing in this Act— isting public water distribution systems, and tion regarding the care of our veterans (1) invalidates or preempts State water law water conservation in Perkins County, has come to my attention. In particu- or an interstate compact governing water; South Dakota. lar, the recruiting and retention of psy- (2) alters the rights of any State to any ap- (c) AMOUNT OF GRANTS.—Grants made chologists in the VHA of the Depart- propriated share of the waters of any body of available under subsection (a) to the water ment of Veterans Affairs has become a surface or ground water, whether determined supply system shall not exceed the Federal by past or future interstate compacts or by significant problem. share under section 10. past or future legislative or final judicial al- The Congress has recognized the im- (d) LIMITATION ON AVAILABILITY OF CON- locations; portant contribution of the behavioral STRUCTION FUNDS.—The Secretary shall not sciences in the treatment of several obligate funds for the construction of the (3) preempts or modifies any Federal or water supply system until— State law, or interstate compact, dealing conditions afflicting a significant por- (1) the requirements of the National Envi- with water quality or disposal; or tion of our veterans. Programs related ronmental Policy Act of 1969 (42 U.S.C. 4321 (4) confers on any non-Federal entity the to homelessness, substance abuse, and et seq.) are met with respect to the water ability to exercise any Federal right to the post traumatic stress disorder (PTSD) supply system; and waters of any stream or to any ground water resource. have received funding from the Con- (2) a final engineering report and a plan for gress in recent years. a water conservation program have been pre- SEC. 9. FEDERAL SHARE. Certainly, psychologists, as behav- The Federal share under section 4 shall be pared and submitted to Congress for a period ioral science experts, are essential to of not less than 90 days before the com- 75 percent of— mencement of construction of the system. (1) the amount allocated in the total the successful implementation of these programs. However, the high vacancy SEC. 5. MITIGATION OF FISH AND WILDLIFE project construction budget for the planning LOSSES. and construction of the water supply system and turnover rates for psychologists in Mitigation of fish and wildlife losses in- under section 4; and the VHA (more than 5% and 8% respec- curred as a result of the construction and op- (2) such sums as are necessary to defray in- tively as reported in one recent survey) eration of the water supply system shall be creases in development costs reflected in ap- might seriously jeopardize these pro- on an acre-for-acre basis, based on ecological propriate engineering cost indices after grams and will negatively impact over- March 1, 1995. equivalency, concurrent with project con- all patient care in the VHA. struction, as provided in the feasibility SEC. 10. NON-FEDERAL SHARE. Recruitment of psychologists by the study. The non-Federal share under section 4 shall be 25 percent of— VHA is hindered by a number of factors SEC. 6. USE OF PICK-SLOAN POWER. including a pay scale not commensu- (a) IN GENERAL.—From power designated (1) the amount allocated in the total for future irrigation and drainage pumping project construction budget for the planning rate with private sector rates and the for the Pick-Sloan Missouri River Basin Pro- and construction of the water supply system low number of clinical and professional gram, the Western Area Power Administra- under section 4; and psychologists appearing on the register tion shall make available the capacity and (2) such sums as are necessary to defray in- of the Office of Personnel Management energy required to meet the pumping and in- creases in development costs reflected in ap- (OPM). Most new hires have no post- cidental operational requirements of the propriate engineering cost indices after doctoral experience and are hired im- March 1, 1995. water supply system during the period begin- mediately after a VHA internship. Re- ning May 1 and ending October 31 of each SEC. 11. CONSTRUCTION OVERSIGHT. cruitment, when successful, takes up year. (a) AUTHORIZATION.—The Secretary may to six months or more. (b) CONDITIONS.—The capacity and energy provide construction oversight to the water described in subsection (a) shall be made supply system for areas of the water supply Retention of psychologists in the available on the following conditions: system. VHA system poses an even more sig- (1) The water supply system shall be oper- (b) PROJECT OVERSIGHT ADMINISTRATION.— nificant problem. I have been informed ated on a not-for-profit basis. The amount of funds used by the Secretary that almost 40% of VHA psychologists S696 CONGRESSIONAL RECORD — SENATE January 19, 1999 have five years or less of post-doctoral out ‘‘who hold diplomas as diplomates in quality it does not meet present or pro- experience. Psychologists leave the psychology from an accrediting authority posed standards for drinking water. VHA system after five years because approved by the Secretary’’. More than two-thirds rely on shallow (b) CERTAIN OTHER APPOINTMENTS.—Sec- they have almost reached peak levels tion 7405(a) of such title is amended— aquifers as their primary source of for salary and professional advance- (1) in paragraph (1)(B), by striking out drinking water, aquifers which are very ment. Furthermore, under the present ‘‘Certified or’’ and inserting in lieu thereof vulnerable to contamination by surface system psychologists cannot be recog- ‘‘Professional psychologists, certified or’’; activities. nized nor appropriately compensated and The Lewis and Clark system will be a for excellence or for taking on addi- (2) in paragraph (2)(B), by striking out supplemental supply of drinking water tional responsibilities such as running ‘‘Certified or’’ and inserting in lieu thereof for its 22 members, acting as a treated, treatment programs. ‘‘Professional psychologists, certified or’’. bulk delivery system. The distribution In effect, the current system for hir- (c) EFFECTIVE DATE.—The amendments to deliver water to individual users will made by subsections (a) and (b) shall take ef- ing psychologists in the VHA supports fect on the date of the enactment of this Act. continue through the existing systems mediocrity, not excellence and mas- (d) APPOINTMENT REQUIREMENT.—Notwith- used by each member utility. This ‘‘re- tery. Our veterans with behavioral and standing any other provision of law, the Sec- gionalization approach’’ to solving mental health disorders are deserving retary of Veterans Affairs shall begin to these water supply and quality prob- of better psychological care from more make appointments of professional psycholo- lems enables the Missouri River to pro- experienced professionals than they are gists in the Veterans Health Administration vide a source of clean, safe drinking currently receiving. under section 7401(3) of title 38, United water to more than 180,000 individuals. Currently, psychologists are the only States Code (as amended by subsection (a)), not later than 1 year after the date of the en- A source of water which none of the doctoral level health care providers in actment of this Act. members of Lewis and Clark could af- the VHA who are not included in Title ford on their own. 38. This is without question a signifi- By Mr. JOHNSON (for himself, Mr. The proposed system would help to cant factor in the recruitment and re- DASCHLE, Mr. GRAMS, Mr. stabilize the regional rural economy by tention difficulties which I have ad- WELLSTONE, Mr. GRASSLEY, and Mr. providing water to Sioux Falls, the hub dressed. Title 38 appointment author- HARKIN): city in the region, as well as numerous ity for psychologists would help ame- small communities and individual liorate the recruitment and retention S. 244. A bill to authorize the con- farms in South Dakota and portions of problems. The length of time to recruit struction of the Lewis and Clark Rural Iowa and Minnesota. psychologists could be abbreviated by Water System and to authorize assist- The States of South Dakota, Iowa eliminating the requirement for appli- ance to the Lewis and Clark Rural and Minnesota have all authorized the cants to be rated by the Office of Per- Water System, Inc., a nonprofit cor- project and local sponsors have dem- sonnel Management. This would also poration, for the planning and con- onstrated a financial commitment to encourage the recruitment of appli- struction of the water supply system, this project through state grants, local cants who are not recent VHA interns and for other purposes; to the Commit- water development district grants and by reducing the amount of time be- tee on Energy and Natural Resources. membership dues. The State of South tween identifying a desirable applicant THE LEWIS AND CLARK RURAL WATER SYSTEM Dakota has already contributed more and being able to offer that applicant a ACT OF 1999 than $400,000. position. Mr. JOHNSON. Mr. President. Today, Mr. President, I do not believe our It is expected that problems in reten- I am proud to be introducing legisla- needs get any more basic than good tion will be greatly alleviated with the tion, along with my colleagues, the Mi- quality, reliable drinking water, and I implementation of a Title 38 system nority Leader Senator DASCHLE of appreciate the fact that Congress has that offers financial incentives for psy- South Dakota, Senator HARKIN and shown support for efforts to improve chologists to pursue professional devel- Senator GRASSLEY of Iowa, and Sen- drinking water supplies in South Da- opment. Achievements that would ator WELLSTONE and Senator GRAMS of kota. I look forward to continue work- merit salary increases include such ac- Minnesota, to authorize the Lewis and ing with my colleagues to have that tivities as assuming supervisory re- Clark Rural Water System. We intro- support extended to the Lewis and sponsibilities for clinical programs, im- duced similar legislation last Congress, Clark Rural Water System plementing innovative clinical treat- and I am pleased with the progress we Mr. President, I ask unanimous con- ments that improve the effectiveness made in the Senate Committee on En- sent that the full text of this legisla- and/or efficiency of patient care, mak- ergy and Natural Resources. The Com- tion be printed in the RECORD. ing significant contributions to the mittee held a hearing and passed the There being no objection, the bill was science of psychology, earning the legislation during the 105th Congress, ordered to be printed in the RECORD, as ABPP displomate state, and becoming and I look forward to again working follows: a Fellow of the American Psycho- closely with my colleagues for timely S. 244 logical Association. consideration of this important meas- Be it enacted by the Senate and House of The conversion of psychologists to ure. Representatives of the United States of America Title 38, as proposed by this amend- The Lewis and Clark Rural Water in Congress assembled, ment, would provide relief for the re- system is made up of 22 rural water SECTION 1. SHORT TITLE. tention and recruitment issues and en- systems and communities in southeast- This Act may be cited as the ‘‘Lewis and hance the quality of care for our Na- ern South Dakota, northwestern Iowa Clark Rural Water System Act of 1999’’. tion’ veterans and their families. and southwestern Minnesota who have SEC. 2. DEFINITIONS. Mr. President, I ask unanimous con- joined together in an effort to coopera- In this Act: sent that the text of this bill be printed tively address the dual problems facing (1) ENVIRONMENTAL ENHANCEMENT.—The term ‘‘environmental enhancement’’ means in the RECORD. the delivery of drinking water in this region—inadequate quantities of water the wetland and wildlife enhancement activi- There being no objection, the bill was ties that are carried out substantially in ac- ordered to be printed in the RECORD, as and poor quality water. cordance with the environmental enhance- follows: The region has seen substantial ment component of the feasibility study. S. 239 growth and development in recent (2) ENVIRONMENTAL ENHANCEMENT COMPO- Be it enacted by the Senate and House of years, and studies have shown that fu- NENT.—The term ‘‘environmental enhance- Representatives of the United States of America ture water needs will be significantly ment component’’ means the component de- in Congress assembled, greater than the current available sup- scribed in the report entitled ‘‘Wetlands and Wildlife Enhancement for the Lewis and SECTION 1. REVISION OF AUTHORITY RELATING ply. Most of the people who are served Clark Rural Water System’’, dated April TO APPOINTMENT OF PROFES- by ten of the water utilities in the pro- 1991, that is included in the feasibility study. SIONAL PSYCHOLOGISTS IN THE posed Lewis and Clark project area cur- VETERANS HEALTH ADMINISTRA- (3) FEASIBILITY STUDY.—The term ‘‘feasibil- TION. rently enforce water restrictions on a ity study’’ means the study entitled ‘‘Fea- (a) IN GENERAL.—Section 7401(3) of title 38, seasonal basis. Almost half of the sibility Level Evaluation of a Missouri River United States Code, is amended by striking membership has water of such poor Regional Water Supply for South Dakota, January 19, 1999 CONGRESSIONAL RECORD — SENATE S697 Iowa and Minnesota’’, dated September 1993, technology and management techniques to (1) invalidates or preempts State water law that includes a water conservation plan, en- conserve water use. or an interstate compact governing water; vironmental report, and environmental en- (b) REQUIREMENTS.—The water conserva- (2) alters the rights of any State to any ap- hancement component. tion programs shall include— propriated share of the waters of any body of (4) MEMBER ENTITY.—The term ‘‘member (1) low consumption performance standards surface or ground water, whether determined entity’’ means a rural water system or mu- for all newly installed plumbing fixtures; by past or future interstate compacts or by nicipality that signed a Letter of Commit- (2) leak detection and repair programs; past or future legislative or final judicial al- ment to participate in the water supply sys- (3) rate schedules that do not include de- locations; tem. clining block rate schedules for municipal (3) preempts or modifies any Federal or (5) PROJECT CONSTRUCTION BUDGET.—The households and special water users (as de- State law, or interstate compact, governing term ‘‘project construction budget’’ means fined in the feasibility study); water quality or disposal; or the description of the total amount of funds (4) public education programs and tech- (4) confers on any non-Federal entity the needed for the construction of the water sup- nical assistance to member entities; and ability to exercise any Federal right to the ply system, as contained in the feasibility (5) coordinated operation among each rural waters of any stream or to any ground water study. water system, and each water supply facility resource. (6) PUMPING AND INCIDENTAL OPERATIONAL in existence on the date of enactment of this SEC. 10. COST SHARING. REQUIREMENTS.—The term ‘‘pumping and in- Act, in the service area of the system. (a) FEDERAL COST SHARE.— cidental operational requirements’’ means (c) REVIEW AND REVISION.—The programs (1) IN GENERAL.—Except as provided in all power requirements that are incidental to described in subsection (b) shall contain pro- visions for periodic review and revision, in paragraph (2), the Secretary shall provide the operation of intake facilities, pumping funds equal to 80 percent of— stations, water treatment facilities, res- cooperation with the Secretary. SEC. 6. MITIGATION OF FISH AND WILDLIFE (A) the amount allocated in the total ervoirs, and pipelines up to the point of de- project construction budget for planning and livery of water by the water supply system LOSSES. Mitigation for fish and wildlife losses in- construction of the water supply system to each member entity that distributes under section 3; water at retail to individual users. curred as a result of the construction and op- eration of the water supply system shall be (B) such amounts as are necessary to de- (7) SECRETARY.—The term ‘‘Secretary’’ on an acre-for-acre basis, based on ecological fray increases in the budget for planning and means the Secretary of the Interior. equivalency, concurrent with project con- construction of the water supply system (8) WATER SUPPLY SYSTEM.—The term struction, as provided in the feasibility under section 3; and ‘‘water supply system’’ means the Lewis and study. (C) such amounts as are necessary to de- Clark Rural Water System, Inc., a nonprofit SEC. 7. USE OF PICK–SLOAN POWER. fray increases in development costs reflected corporation established and operated sub- (a) IN GENERAL.—From power designated in appropriate engineering cost indices after stantially in accordance with the feasibility for future irrigation and drainage pumping September 1, 1993. study. for the Pick-Sloan Missouri Basin program, (2) SIOUX FALLS.—The Secretary shall pro- SEC. 3. FEDERAL ASSISTANCE FOR THE WATER the Western Area Power Administration vide funds for the city of Sioux Falls, South SUPPLY SYSTEM. shall make available the capacity and en- Dakota, in an amount equal to 50 percent of (a) IN GENERAL.—The Secretary shall make ergy required to meet the pumping and inci- the incremental cost to the city of participa- grants to the water supply system for the dental operational requirements of the water tion in the project. planning and construction of the water sup- supply system during the period beginning (b) NON-FEDERAL COST SHARE.— ply system. on May 1 and ending on October 31 of each (1) IN GENERAL.—Except as provided in (b) SERVICE AREA.—The water supply sys- year. paragraph (2), the non-Federal share of the tem shall provide for safe and adequate mu- (b) CONDITIONS.—The capacity and energy costs allocated to the water supply system nicipal, rural, and industrial water supplies, described in subsection (a) shall be made shall be 20 percent of the amounts described environmental enhancement, mitigation of available on the following conditions: in subsection (a)(1). wetland areas, and water conservation in— (1) The water supply system shall be oper- (2) SIOUX FALLS.—The non-Federal cost- (1) Lake County, McCook County, Minne- ated on a not-for-profit basis. share for the city of Sioux Falls, South Da- haha County, Turner County, Lincoln Coun- (2) The water supply system shall contract kota, shall be 50 percent of the incremental ty, Clay County, and Union County, in to purchase the entire electric service re- cost to the city of participation in the southeastern South Dakota; quirements of the system, including the ca- project. (2) Rock County and Nobles County, in pacity and energy made available under sub- southwestern Minnesota; and section (a), from a qualified preference power SEC. 11. BUREAU OF RECLAMATION. (3) Lyon County, Sioux County, Osceola supplier that itself purchases power from the (a) AUTHORIZATION.—The Secretary may County, O’Brien County, Dickinson County, Western Area Power Administration. allow the Director of the Bureau of Reclama- and Clay County, in northwestern Iowa. (3) The rate schedule applicable to the ca- tion to provide project construction over- (c) AMOUNT OF GRANTS.—Grants made pacity and energy made available under sub- sight to the water supply system and envi- available under subsection (a) to the water section (a) shall be the firm power rate ronmental enhancement component for the supply system shall not exceed the amount schedule of the Pick-Sloan Eastern Division service area of the water supply system de- of funds authorized under section 10. of the Western Area Power Administration scribed in section 3(b). (d) LIMITATION ON AVAILABILITY OF CON- in effect when the power is delivered by the (b) PROJECT OVERSIGHT ADMINISTRATION.— STRUCTION FUNDS.—The Secretary shall not Administration. The amount of funds used by the Director of obligate funds for the construction of the (4) It is agreed by contract among— the Bureau of Reclamation for planning and water supply system until— (A) the Western Area Power Administra- construction of the water supply system (1) the requirements of the National Envi- tion; shall not exceed the amount that is equal to ronmental Policy Act of 1969 (42 U.S.C. 4321 (B) the power supplier with which the 1 percent of the amount provided in the total et seq.) are met; water supply system contracts under para- project construction budget for the entire (2) a final engineering report is prepared graph (2); project construction period. and submitted to Congress not less than 90 (C) the power supplier of the entity de- SEC. 12. AUTHORIZATION OF APPROPRIATIONS. days before the commencement of construc- scribed in subparagraph (B); and There is authorized to be appropriated to tion of the water supply system; and (D) the water supply system; carry out this Act $226,320,000, of which not (3) a water conservation program is devel- that in the case of the capacity and energy less than $8,487,000 shall be used for the ini- oped and implemented. made available under subsection (a), the ben- tial development of the environmental en- SEC. 4. FEDERAL ASSISTANCE FOR THE ENVI- efit of the rate schedule described in para- hancement component under section 4, to re- RONMENTAL ENHANCEMENT COM- graph (3) shall be passed through to the main available until expended. PONENT. water supply system, except that the power (a) INITIAL DEVELOPMENT.—The Secretary Mr. GRAMS. Mr. President, I rise supplier of the water supply system shall not today with my colleagues for the intro- shall make grants and other funds available be precluded from including, in the charges to the water supply system and other pri- of the supplier to the water system for the duction of the Lewis and Clark Rural vate, State, and Federal entities, for the ini- electric service, the other usual and cus- Water System Act of 1999. I would like tial development of the environmental en- tomary charges of the supplier. to thank Senator JOHNSON and Senator hancement component. SEC. 8. NO LIMITATION ON WATER PROJECTS IN DASCHLE for their hard work and dedi- (b) NONREIMBURSEMENT.—Funds provided STATES. cation to this project over the past two under subsection (a) shall be nonreimburs- This Act does not limit the authorization Congresses. able and nonreturnable. for water projects in the States of South Da- Mr. President, the Southwestern cor- SEC. 5. WATER CONSERVATION PROGRAM. kota, Iowa, and Minnesota under law in ef- (a) IN GENERAL.—The water supply system fect on or after the ate of enactment of this ner of Minnesota, along with adjoining shall establish a water conservation program Act. areas in South Dakota and Iowa, is now that ensures that users of water from the SEC. 9. WATER RIGHTS. served by a wholly inadequate water water supply system use the best practicable Nothing in this Act— system which is highly susceptible to S698 CONGRESSIONAL RECORD — SENATE January 19, 1999 drought, leading most of the commu- BIDEN earlier this decade culminating THE SATELLITE HOME VIEWER IMPROVEMENTS nities in this region to impose severe in the passage of the Violence Against ACT OF 1999 water restrictions. Women Act in 1994. I have great hopes Mr. HATCH. Mr. President, I rise The situation has forced commu- that Senator BIDEN and I can duplicate today to introduce legislation that will nities throughout the region to explore that strong bipartisan effort in the help provide for greater consumer aggressively alternative water sup- 106th Congress. choice and competition in television plies. Communities such as Luverne Five years after the passage of services, the ‘‘Satellite Home Viewer and Worthington, both in southwestern VAWA I, I think it is fair to say that Improvements Act of 1999.’’ Joining me Minnesota, have spent tens of thou- this Act has significantly enhanced the in introducing this bill are the Major- sands of dollars yearly in an unsuccess- efforts of law enforcement in combat- ity Leader, Senator LOTT, the distin- ful search for another water source, al- ing violence against women and im- guished Ranking Member of the Judici- ways with the same disappointing re- proved the services available to vic- ary Committee, Senator LEAHY, the sults. Eventually, however, it was de- tims of domestic violence in my home distinguished chairman of the Com- termined that by working together state of Utah and across the nation. merce Committee, Senator MCCAIN, with communities throughout the re- and my colleagues on the Judiciary But five years later, it is time to ad- gion and in all three states, a workable Committee, Senators DEWINE and vance the process in three major re- solution might be found. KOHL. That solution is the bill we are intro- spects: (1) it is time to review and evaluate the effectiveness of programs The options consumers have for view- ducing today. Under this legislation, ing television entertainment have local communities will come together created by the 1994 Act and to reexam- ine the adequacy of the funding levels vastly increased since that fateful day with the affected states and the federal in September 1927 when television in- government to form a strong, financial for these programs; (2) it is time to re- view law enforcement’s efforts and suc- ventor and Utah native Philo T. partnership, thereby ensuring an ade- Farnsworth, together with his wife and quate, safe water supply while reducing cesses as a result of the 1994 Act; and (3) it is time to survey and consider the colleagues, viewed the first television the cost to the American taxpayers. transmission in the Farnsworth’s home The Lewis and Clark Rural Water need for new programs and further changes in the law. workshop: a single black line rotated System is a fiscally responsible project from vertical to horizontal. Both the that invests in the future economic Thus, while I am today introducing a forms of entertainment and the tech- health of the tri-state region by bill that reauthorizes the majority of nologies for delivering that entertain- strengthening its critical utilities in- current programs, many at increased ment have proliferated over the 70 frastructure. With increasing popu- funding levels, I think that these pro- years since that day. In the 1940’s and lation growth, economic development, grams need first to be evaluated as to 1950’s, televisions began arriving in an new federal drinking water regulations, whether available funds are being used increasing number of homes to pick up water demands, and shallow wells and in the most effective way possible. Fur- entertainment being broadcast into a aquifers which are subject to contami- ther, I know that Senator BIDEN has a growing number of cities and towns. nation, it is critical that the area en- number of ideas for new programs and In the late 1960’s and early 1970’s, compassed by the Lewis and Clark changes in the law, and I look forward cable television began offering commu- Rural Water System establish a clean, to working with him on some of those nities more television choices by ini- reliable water source to meet the de- ideas. tially providing community antenna mand for future water use that cannot Finally, let me just note that my bill systems for receiving broadcast tele- be met by present resources. also contains some new proposals re- vision signals, and later by offering Mr. President, this legislation has garding campus violence, battered im- new created-for-cable entertainment. been before the Senate for the last two migrant women, and the victims of do- The development of cable television Congresses. Last year, we were success- mestic violence on military bases made dramatic strides with the enact- ful in passing the legislation through around the country. Like many Ameri- ment of the cable compulsory license the Energy and Natural Resources cans, I watched with some horror on in 1976, providing an efficient way of Committee. This year, we must see this Sunday night as ‘‘60 Minutes’’ detailed clearing copyright rights for the re- bill passed by the Senate and the House the degree of domestic violence on and transmission of broadcast signals over and sent to the President for his signa- around our military bases and the ap- cable systems. ture. parent lack of serious responsiveness In the 1980’s, television viewers began Providing safe and available drinking by persons in charge. This situation, if water to our communities is one of the to be able to receive television enter- accurately portrayed, is not accept- tainment with their own home satellite most basic functions of government. It able, and this Administration needs to is not a partisan issue, and therefore I equipment, and the enactment of the act swiftly and effectively to change Satellite Home Viewer Act in 1988 am proud to join with a bipartisan what is reportedly happening. To that group of my colleagues and the gov- helped develop a system of providing end, my bill includes a provision re- options for television service to Ameri- ernors of Minnesota, South Dakota, quiring a prompt review and report by and Iowa in supporting this bill. cans who lived in areas too remote to the Secretary of Defense on the inci- receive television signals over the air dence of and response to domestic vio- By Mr. HATCH: or via cable. lence on our military bases. S. 245. A bill to reauthorize the Fed- Much has changed since the original eral programs to prevent violence In sum, Mr. President, I hope that Satellite Home Viewer Act was adopted against women, and for other purposes; enacting effective legislation to com- in 1988. The Satellite Home Viewer Act to the Committee on the Judiciary. bat violence against women will be a was originally intended to ensure that VIOLENCE AGAINST WOMEN ACT OF 1999 priority in the 106th Congress. I intend households that could not get tele- Mr. HATCH. Mr. President, I rise to do my best, working in a bipartisan vision in any other way, traditionally today to introduce a bill titled ‘‘Vio- fashion, to ensure that it is. provided through broadcast or cable, lence Against Women Act of 1999.’’ I ex- would be able to get television signals pect that this will be one of several By Mr. HATCH (for himself, Mr. via satellite. The market and satellite bills introduced this week in both the LEAHY, Mr. MCCAIN, Mr. industry has changed substantially Senate and the House of Representa- DEWINE, Mr. KOHL, and Mr. since 1988. Many of the difficulties and tives, reflecting an array of ideas and LOTT): controversies associated with the sat- views on the reauthorization of exist- S. 247. A bill to amend title 17, ellite license have been at least partly ing programs and the creation of new United States Code, to reform the a product of the satellite business at- ones. copyright law with respect to satellite tempting to move from a predomi- Let me say at the outset, that one of retransmissions of broadcast signals, nately need-based rural niche service my proudest accomplishments in this and for other purposes; to the Commit- to a full service video delivery com- body was my work with Senator JOE tee on the Judiciary. petitor in all markets, urban and rural. January 19, 1999 CONGRESSIONAL RECORD — SENATE S699 Now, many market advocates both in It allows consumers to switch from continued collaboration with them and and out of Congress are looking to sat- cable to satellite service for network with our other colleagues to help has- ellite carriers to compete directly with signals without waiting a 90-day period ten more vigorous competition in the cable companies for viewership, be- now required in the law. television delivery market and the cause we believe that an increasingly It allows for a national Public Broad- ever-widening consumer choice that competitive market is better for con- casting Service satellite feed. will follow it. sumers both in terms of cost and the Many of my colleagues in this cham- I ask unanimous consent that an ex- diversity of programming available. ber will recognize this legislation as planatory section-by-section analysis The bill I introduce today will move us substantively identical to a bill re- of the bill be printed in the RECORD. toward that kind of robust competi- ported unanimously by the Judiciary There being no objection, the mate- tion. Committee last year. I am pleased with rial was ordered to be printed in the In short, this bill is focused on the degree of cooperation and consen- RECORD, as follows: changes that we can make this year to sus we were able to forge with respect SECTION-BY-SECTION DESCRIPTION OF S. 247 move the satellite television industry to this legislation last year, and I hope SECTION 1. SHORT TITLE. to the next level, making it a full com- that we can pick up where we left off to The title of the bill is the ‘‘Satellite Home petitor in the multi-channel video de- bring this bill before the Senate for Viewer Improvements Act’’. livery market. It has been said time swift consideration and approval. SEC. 2. LIMITATIONS ON EXCLUSIVE RIGHTS; and again that a major, and perhaps As I indicated late in the last Con- SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS WITHIN the biggest, impediment to satellite’s gress, the bill I am introducing is in- LOCAL MARKETS. ability to be a strong competitor to tended to be a piece of a larger joint Section 2 of the bill creates a new copy- cable is its current inability to provide work product to be crafted in conjunc- right compulsory license, found at section local broadcast signals. (See, e.g., Busi- tion with our colleagues on the Com- 122 of title 17 of the United States Code, for ness week (22 Dec. 1997) p. 84.) This merce Committee. Once again in the the retransmission of television broadcast problem has been partly technological 106th Congress, it is our intention that stations by satellite carriers to subscribers located within the local markets of those and partly legal. the Judiciary Committee will move forward with consideration of the copy- stations. In order to be eligible for this com- Even as we speak, the technological pulsory license, a satellite carrier must be in hurdles to local retransmission of right legislation I am introducing full compliance with all applicable rules and broadcast signals are being lowered today, which, as I indicated, is cospon- regulations of the Federal Communications substantially. Emerging technology is sored by the Chairman of the Com- Commission, including any must-carry obli- now enabling the satellite industry to merce Committee. The Commerce gations imposed upon the satellite carrier by begin to offer television viewers their Committee will proceed simulta- the Commission or by law. own local programming of news, weath- neously to consider separate legisla- Because the copyrighted programming er, sports, and entertainment, with dig- tion to be introduced by Chairman contained on local broadcast programming is already licensed with the expectation that MCCAIN to address related communica- ital quality picture and sound. This all viewers in the local market will be able will mean that viewers in the remoter tions amendments regarding such im- to view the programming, the new section areas of my large home state of Utah portant areas as the must-carry and re- 122 license is a royalty-free license. Satellite will be able to watch television pro- transmission consent requirements for carriers must, however, provide local broad- gramming originating in Salt Lake satellite carriers upon which the copy- casters with lists of their subscribers receiv- City, rather than New York or Califor- right licenses will be conditioned, and ing local stations so that broadcasters may nia. Utahns in remote areas will have the FCC’s distant signal eligibility verify that satellite carriers are making access to local weather and other lo- process. It is our joint intention to proper use of the license. The subscriber in- combine our respective work product formation supplied to broadcasters is for ver- cally and regionally relevant informa- ification purposes only, and may not be used tion. In fact, one satellite carrier is al- as two titles of the same bill in a way by broadcasters for other reasons. ready providing such a service in Utah. that will clearly delineate the work Satellite carriers are liable for copyright Today, with this bill, we hope to product of each committee, but com- infringement, and subject to the full rem- begin removing the legal impediments bine them into the seamless whole nec- edies of the Copyright Act, if they violate to use of this emerging technology to essary to make the licenses work for one or more of the following requirements of make local retransmission of broadcast consumers and the affected industries. the section 122 license. First, satellite car- signals a reality for all subscribers. We need to act quickly on this legis- riers may not in any way willfully alter the lation. The Satellite Home Viewer Act programming contained on a local broadcast The most important result will be that station. the constituents of all my colleagues sunsets at the end of this year, placing Second, satellite carriers may not use the will finally have a choice for full serv- at risk the service of many of the 11 section 122 license to retransmit a television ice multi-channel video programming. million satellite subscribers nation- station to a subscriber located outside the They will be able to choose cable or wide. Many of our constituents are local market of the station. If a carrier will- one of a number of satellite carriers. confused about the status of satellite fully or repeatedly violates this limitation This should foster an environment of service because of a court order requir- on a nationwide basis, then the carrier may be enjoined from retransmitting that signal. proliferating choice and lowered prices, ing the cessation of distant-signal sat- ellite service in February and April to If the broadcast station involved is a net- all to the benefit of consumers, our work station, then the carrier could lose the constituents. as many as 2.5 million subscribers na- right to retransmit any network stations af- To that end, the ‘‘Satellite Home tionally who have been adjudged ineli- filiated with that same network. If the will- Viewer Improvements Act’’ makes the gible for distant signal service under ful or repeated violation of the restriction is following changes in the copyright gov- current law. The granting of the local performed on a local or regional basis, then erning satellite television trans- license, together with some resolution the right to retransmit the station (or, if a missions: of the eligibility rules for distant sig- network station, then all other stations af- It creates a new copyright license nals and a more consumer-friendly filiated with that network) can be enjoined process can help bring clarity to these on a local or regional basis, depending upon which allows satellite carriers to re- the circumstances. In addition to termi- transmit a local television station to consumers. nation of service on a nationwide or local or households and businesses throughout Let me again thank the Majority regional basis, statutory damages are avail- that station’s local market, just like Leader for his interest in and leader- able up to $250,000 for each 6-month period cable does, and sets a zero copyright ship with respect to these issues, and during which the pattern or practice of vio- rate for providing this service. the Chairman of the Commerce Com- lations was carrier out. Satellite carriers It extends the satellite compulsory mittee for his collegiality and coopera- have the burden of proving that they are not licenses for both local and distant sig- tion in this process. I also want to improperly making use of the section 122 li- nals, which are now set to expire at the thank my colleagues on the Judiciary cense to serve subscribers outside the local markets of the television broadcast stations end of the year, until 2004. Committee who have worked on this they are providing. It cuts the copyright rates paid for legislation. This bill is a product of a The section 122 license is not limited to distant signals by 30 or 45 percent, de- bipartisan effort with Senators LEAHY, private home viewing, as is the section 119 pending on the type of signal. DEWINE, and KOHL. I look forward to compulsory license, so that satellite carriers S700 CONGRESSIONAL RECORD — SENATE January 19, 1999 may make use of it to serve commercial es- Committee, Senator MCCAIN and their In addition, under current law many tablishments as well as homes. The local ranking member, Senator HOLLINGS. I families must get their local TV sig- market of a television broadcast station for look forward to working with all Sen- nals over an antenna which often does purposes of the section 122 license will be de- ators on this matter. not provide a clear picture. This bill fined by the Federal Communications Com- I have received hundreds of calls mission as part of its broadcast carriage will remove that legal limitation and rules for satellite carriers. from Vermonters last year whose sat- allow satellite carriers to offer local SEC. 3. EXTENSION OF EFFECT OF AMENDMENTS ellite TV service was about to be ter- TV signals to viewers no matter where TO SECTION 119 OF TITLE 17, minated. I am still hearing from Ver- they live in Vermont. UNITED STATES CODE. monters from all over the state. They To take advantage of this, satellite Section 3 of the bill extends the expiration are steaming mad and so am I. carriers over time will have to follow date of the current section 119 satellite com- This is an outrageous situation—the the rules that cable providers have to pulsory license from December 31, 1999 to De- law must be changed and the Federal follow. This will mean that they must cember 31, 2004. Communications Commission has to do carry all local Vermont TV stations SEC. 4. COMPUTATION OF ROYALTY FEES FOR its job. and not carry distant network stations SATELLITE CARRIERS. I have worked to change the law over Section 4 of the bill reduces the 27 cent that compete with local stations. royalty fee adopted last year by the Librar- the last two years to try to avoid the Presently Vermonters receive net- ian of Congress for the retransmission of net- situation we now face. I have also in- work satellite signals with program- work and superstation signals by satellite sisted that the FCC change its unreal- ming from stations in other states—in carriers under the section 119 license. The 27 istic rules that will result in needless other words receive a CBS station from cent rate for superstations is reduced by 30 terminations of service to Vermont another state but not WCAX, the Bur- percent per subscriber per month, and the 27 families. lington CBS affiliate. cent rate for network stations is reduced by Unfortunately, we are on a collision 45 percent per subscriber per month. By allowing satellite providers to course because of two Court orders af- offer a larger variety of programming, In addition, section 119(c) of title 17 is fecting CBS and Fox signals offered to amended to clarify that in royalty distribu- including local stations, the satellite tion proceedings conducted under section 802 home dish owners, an inability to pass industry would be able to compete with of the Copyright Act, the Public Broadcast- needed legislation last year, and the cable, and the cable industry will be ing Service may act as agent for all public unwillingness of the FCC to step in and competing with satellite carriers. television copyright claimants and all Public alleviate this situation. All the members of the Judiciary Before I go into the details I want to Broadcasting Service member stations. Committee have worked on this matter point out that this bipartisan bill rep- SEC. 5. DEFINITIONS. and I appreciate their efforts. On No- Section 5 of the bill adds two new defini- resents very good public policy. It will vember 12, of 1997, Chairman HATCH and tions to the current section 119 satellite li- increase competition among TV pro- I held a full Committee hearing on sat- cense. The ‘‘unserved household’’ definition viders, give consumers more choices, ellite issues to try to avoid needless is modified to eliminate the 90 day waiting preserve the local affiliate TV system, cutoffs of satellite TV service while, at period for satellite subscribers to wait after act to lower cable and satellite rates, termination of their cable service until they the same time, working to protect the are eligible for satellite service of network and will eventually offer local news, weather and programming over sat- network affiliate TV broadcast system. signals. A new definition of a ‘‘local network Soon after, on March 5, 1998, we in- ellite TV instead of programming from station’’ is added to clarify that the section troduced the Hatch-Leahy satellite bill 119 license is limited to the retransmission of distant stations. Over the next couple (S. 1720) to address these concerns. This distant television stations, and not local sta- years, this initiative can solve the tions. problem of losing satellite service by bill was amended in Committee with a Hatch-Leahy substitute and was re- SEC. 6. PUBLIC BROADCASTING SERVICES SAT- allowing satellites to offer a full array ELLITE FEED. of local TV stations. ported out of the Judiciary Committee Section 6 of the bill extends the section 119 It will lead to lower rates for con- unanimously on October 1, 1998. license to cover the copyrighted program- sumers because the bill creates head- In the meantime, in July 1998, a fed- ming carried upon the Public Broadcasting’s eral district court judge in Florida national satellite feed. The national satellite to-head competition between cable and satellite TV providers. The bill will found that PrimeTime 24 was offering feed is treated as a superstation for compul- distant CBS and Fox television signals sory license purposes. Also, the bill requires allow households who want to sub- that PBS must certify to the Copyright Of- scribe to this new satellite TV service, to more than a million households in fice on an annual basis that the PBS mem- called ‘‘local-into-local’’—to receive all the U.S. in a manner inconsistent with bership continues to support retransmission local Vermont TV stations over the its compulsory license that permits of the national satellite feed under the sec- satellite. such satellite service only to house- tion 119 license. The goal is to offer Vermonters with holds who do not get at least ‘‘grade B SEC. 7. APPLICATION OF FEDERAL COMMUNICA- more choices, more TV selections, but intensity’’ service. Under a preliminary TIONS COMMISSION REGULATIONS. at lower rates. In areas of the country injunction, satellite service to thou- Section 7 of the bill amends the current where there is this full competition sands of households in Vermont and section 119 license to make it contingent other states was to be terminated on upon full compliance with all rules and regu- with cable providers, rates to cus- lations of the FCC. This provision mirrors tomers are considerably lower. October 8, 1998, for CBS and Fox dis- the requirement imposed upon cable opera- Thus, over time this initiative will tant network signals for households tors under the cable compulsory license. permit satellite TV providers to offer a signed up after March 11, 1997, the date SEC. 8. EFFECTIVE DATE. full selection of all local TV channels the action was filed. The amendments made by this bill become to viewers throughout most of Ver- To avoid immediate cutoffs of sat- effective on January 1, 1999, with the excep- mont, as well as the typical com- ellite TV service in Vermont and other tion of section 4 which becomes effective on plement of superstations, weather and states, the parties requested an exten- July 1, 1999. sports channels, PBS, movies and a va- sion of the October 8, 1998, termination Mr. LEAHY. Mr. President, on this riety of other channels. This means date which was granted until February first legislative day of the new session, that local Vermont TV stations will be 28, 1999. This extension was also de- I am joining Chairman HATCH of the available over satellite dishes to many signed to give the FCC time to address Judiciary Committee to introduce a areas of Vermont currently not served these problems faced by satellite home bill to help protect satellite TV view- by satellite or by cable. dish owners. ers. I know it also has the support of Under current law, it is illegal for The FCC solicited comments on subcommittee Chairman, Senator satellite TV providers to offer local TV whether the current definition of grade DEWINE, and its ranking member, Sen- channels over a satellite dish when you B intensity was adequate. ator KOHL. I appreciate the fact that live in an area where you are normally I was very concerned about the FCC Republicans and Democrats are work- likely to get a clear TV signal with a proposal in this matter and filed a ing together on this issue. I also want regular rooftop antenna. This means comment asking the FCC to come up to thank the Majority Leader, Senator that thousands of Vermonters living in with a realistic and workable system LOTT, for his assistance on this issue as or near Burlington cannot receive local to protect satellite dish owners. I criti- well as the Chairman of the Commerce signals over their satellite dishes. cized the FCC rule in that it would cut January 19, 1999 CONGRESSIONAL RECORD — SENATE S701 off households from receiving distant place, this system will enhance the lic. While tenure during good behavior, signals based on ‘‘unwarranted assump- local affiliate television system. which amounts to life tenure, is impor- tions’’ in a manner inconsistent with I, thus, urge my colleagues to co- tant in that it frees judges to make un- the law and the clear intent of the Con- sponsor this effort. popular but constitutionally sound de- gress. I complained about entire towns cisions, it can become a threat to lib- in Vermont which were to be inappro- By Mr. HATCH (for himself, Mr. erty when placed in the wrong hands. priately cut off and insisted that FCC ASHCROFT, Mr. THURMOND, Mr. SES- And substituting the will of life- issue a final rule that permits ‘‘a SIONS, and Mr. KYL): tenured federal judges for the demo- smooth transition to ‘local-into-local’ cratically elected representatives is S. 248. A bill to modify the proce- satellite TV service.’’ not what our Constitution’s framers dures of the Federal courts in certain I said in my comment to their pro- had in mind. posal that: ‘‘The Commission’s pro- matters, to reform prisoner litigation, In an effort to avoid this long-con- posal raises a number of complex and for other purposes; to the Commit- templated problem, the proposed re- issues, yet the guiding principle that tee on the Judiciary. form legislation we are introducing the FCC should follow is simple: No THE JUDICIAL IMPROVEMENT ACT OF 1999 today will assist in ensuring that all customer’s ‘distant’ satellite TV sig- Mr. HATCH. Mr. President, I rise three branches of the Federal Govern- nals should be cut off if the customer is today to introduce, along with Sen- ment work together in a fashion con- unable to receive local TV broadcasts ators ASHCROFT, THURMOND, KYL, and templated by, and consistent with, the over-the-air.’’ SESSIONS, the ‘‘Judicial Improvement Constitution. In addition, this legisla- I also pointed out that: ‘‘The clear Act of 1999.’’ This legislation is de- tion will ensure that federal judges are purpose of the law was, and is, to pro- signed to preserve the democratic proc- more respectful of the States and their tect those living in more rural areas so ess by strengthening the constitutional respective sovereignty. that they can receive TV signals using division of powers between the Federal I want to be clear in stating that this satellite dishes when they are unable Government and the States and be- bill does not, as some may claim, chal- to receive a strong signal using an an- tween Congress and the Courts. I intro- lenge the independence of federal tenna. Your final rule should reflect duced this legislation last session, but, judges. However, there are currently that purpose. I have heard from con- to my regret, the Senate did not have some activist federal judges improperly stituents in two Vermont towns where an opportunity to act upon it. I am re- expanding their roles in an effort to I am told that almost no one can re- introducing it because the same ills substitute their own ideas and inter- ceive a clear TV signal, yet all families that were plaguing our judicial system ests for the will of the people. Judges, with satellite dishes were being tar- continue to exist, and I believe this however, are simply not entitled to de- geted for termination of their satellite legislation can remedy these ills. I viate from their roles as interpreters of TV channels.’’ have every expectation that this legis- the law in order to create new law from I also noted in my comment: ‘‘A sec- lation will be acted upon and favorably the bench. If they believe otherwise, ond area that concerns me relates to passed this session. they are derelict in their duties and who should bear the cost of any testing I have always given credit where should leave the federal bench to run that is done. I have heard from Ver- credit is due. So let me state that on for public office—at least then they monters who are justifiably furious the whole, our federal judges respect would be accountable for their actions. that they are being asked to pay for their constitutional roles and the Sen- It is time that we pass legislation that these costs. The burden of proof and ate is aware of these judges’ dedication precludes any federal judge from blur- the burden of any additional expenses to administering their oaths of office. ring the lines separating the legislative should not be assessed upon the fami- Yet, unfortunately, this dedication is and judicial functions. lies owning the satellite dishes.’’ not universal and a degree of over- It is important to note that the ef- ‘‘While the hills and mountains of reaching by some judges dictates that fort to reign in judicial activism Vermont are a natural wonder, they Congress move to more clearly delin- should not be limited simply to oppos- are barriers to receiving clear TV sig- eate the proper role of federal judges. ing potential activist nominees. While nals over-the-air with roof top anten- In our constitutional system, judges the careful scrutiny of judicial nomi- nas. For example, at my home in Mid- can not conveniently forget or bla- nees is one important step in the con- dlesex, Vermont, we can only get one tantly ignore that the Constitution has firmation process, a step reserved to channel clearly and the other channel exclusively reserved to Congress the the Senate alone, Congress itself has with lots of ghosts.’’ In yet another development, the power to legislate and limited their an obligation to the public to ensure Florida district court filed a final order power to the interpretation of the law. that judges fulfill their constitu- which will also require that households This careful, but deliberate, separa- tionally prescribed roles and do not en- signed up for satellite service before tion of legislative and judicial func- croach upon those powers delegated to March 11, 1997, be subject to termi- tions is a cornerstone of our constitu- the legislature. Hence, the Congress nation of CBS and Fox distant signals tional system. Regardless of the temp- performs an important role in bringing on April 30, 1999, if they live in areas tation to embrace a certain judge’s de- activist decisions to light and, where where they are likely to receive a cision that some may find socially or appropriate, publicly criticizing those grade B intensity signal, as defined by politically expedient, we must remem- decisions. Some view this as an assault the Court and FCC rules, and are un- ber that no interest is more compelling upon judicial independence. That is un- able to get the local CBS or Fox affili- than preserving our Constitution. true. It is merely a means of engaging ate to consent to receipt of the distant Now, attempts by certain federal in debate about a decision’s merits or signal. My understanding is that each judges to infringe upon Congress’s leg- the process by which the decision was subscriber that is to lose service must islative authority deeply concern me. I reached. Such criticism is a healthy receive notice 45 days in advance. have taken the floor in this chamber part of our democratic system. While I want to make clear, as I did in my on numerous occasions to recite some life tenure insulates judges from the comment to the FCC, that I strongly of the more troubling examples of judi- political process, it should not, and believe in the local affiliate television cial overreaching. I will not revisit must not, isolate them from the peo- system. Local broadcast stations pro- them today. Suffice it to say that ac- ple. vide the public with local news, local tivism, and by that I mean a judge who In addition, the Constitution grants weather, local informational program- ignores the written text of the law, Congress the authority, with a few no- ming, local emergency advisories, can- whether from the right or the left, table limitations, to set federal courts’ didate forums, local public affairs pro- threatens our constitutional structure. jurisdiction. This is an important tool gramming, and high quality programs. An an elected official, my votes for that, while seldom used, sets forth the Local broadcast stations contribute to legislation are subject to voter ap- circumstances in which the judicial our sense of community. proval. Federal judges, however, are power may be exercised. A good exam- I strongly believe that when the full unelected, hence they are, as a prac- ple of this is the 104th Congress’ effort local-into-local satellite system is in tical matter, unaccountable to the pub- to reform the statutory writ of habeas S702 CONGRESSIONAL RECORD — SENATE January 19, 1999 corpus in an attempt to curb the seem- eral judge to restrain the enforcement, review before reconsidering the merits ingly endless series of petitions filed by operation and execution of challenged of granting relief, but not less than 100 convicted criminals bent on thwarting federal or state laws, including initia- days after the issuance of the original the demands of justice. Legislation of tives. There have been many instances order granting interlocutory relief. If this nature is an important means of where an activist judge has used this the interlocutory order is upheld on ap- curbing activism. power to overturn a ballot initiative peal, the order would remain in force In an effort to accomplish these only to have his or her order over- no longer than 60 days after the date of goals, I have chosen to re-introduce, turned by a higher court years later. the appellate decision or until replaced along with my colleagues, the Judicial One need only remember how Propo- by a permanent injunction. Improvement Act. It is a small, albeit sition 209, a ballot initiative passed by The bill also proposes limitations on meaningful, step in the right direction. the voters which prohibited affirmative the remedial authority of federal Notably, this legislation will change action in California, was held in abey- courts. In any civil action where pro- the way federal courts review constitu- ance after a district court judge issued spective relief or a consent judgment tional challenges to state and federal an injunction barring its enforcement binds state and local officials, relief laws. The existing process allows a sin- to understand how the three judge would be terminated upon the motion gle federal judge to hear and grant ap- panel provision may in fact play a role of any party or intervener: (a) Five plications regarding the constitu- in ensuring that the will of the people years after the date the court granted tionality of state and federal laws as is not wrongfully thwarted. The injunc- or approved the prospective relief; (b) well as state ballot initiatives. In other tion was subsequently overturned by two years after the date the court has words, a single federal judge can im- the Ninth Circuit Court of Appeals entered an order denying termination pede the will of a majority of the vot- which ruled that the law was constitu- of prospective relief; or (c) in the case ers merely by issuing an order halting tional. A three judge panel perhaps of an order issued on or before the date the implementation of a state referen- may have ruled correctly initially, al- of enactment of this act, two years dum. lowing the democratic process to work after the date of enactment. This proposed reform will accomplish properly while also saving taxpayer Parties could agree to terminate or the twin goals of fighting judicial ac- dollars. modify an injunction before relief is tivism and preserving the democratic Obviously, I have no problem with a available if it otherwise would be le- process. In essence, this bill modestly court declaring a law unconstitutional gally permissible. Courts would proposes to respond to the problem of when it violates the written text of the promptly rule on motions to modify or judicial activism in part by: (1) Requir- Constitution. It is, however, inappro- terminate this relief and in the event ing a three judge district court panel priate when a judge attempts to act that a motion is not ruled on within 60 to hear appeals and grant interlocutory like a legislator and imposes his own days, the order or consent judgment or permanent injunctions based on the policy preference on the citizens of a binding state and local officials would constitutionality of a state law or ref- state. Such an action weakens respect automatically terminate. erendum; (2) placing time limitations for the federal judiciary, creates cyni- However, prospective relief would not on remedial authority in any civil ac- cism in the voting public, and costs terminate if the federal court makes tion in which prospective relief or a governments millions of dollars in written findings based on the record consent judgment binds State or local legal fees. By requiring a ruling by a that relief remains necessary to cor- officials; (3) prohibiting a federal court three judge panel to overturn the valid- rect an ongoing violation of a federal from having the authority to order ity of a State law, the proposed law right, extends no further than nec- state or local governments to increase would eliminate the ability of one ac- essary to correct the violation and is taxes as part of a judicial remedy; (4) tivist judge to unilaterally bar enforce- the least intrusive means available to preventing a federal court from prohib- ment of a law or ballot initiative correct the violation of a federal right. iting state or local officials from re- through an interlocutory or permanent Moreover, this measure would also prosecuting a defendant; and (5) pre- injunction. prohibit a federal court from having venting a federal court from ordering In addition, new time limits on in- the authority to order a unit of state the release of violent offenders under junctive relief would be imposed. A or local government to increase taxes unwarranted circumstances. temporary restraining order would re- as part of a judicial remedy. When an As I said last session and still believe main in force no more than 10 days, unelected federal judge has the power to be true, this reform bill is a long and an interlocutory injunction no to order tax increases, this results in overdue effort to minimize the poten- more than 60 days. After the expiration taxation without representation. tial for judicial activism in the federal of an interlocutory injunction, federal Americans have fought against unfair court system. Americans are under- courts would lack the authority to taxation since the Revolutionary War, standably frustrated when they exer- grant any additional interlocutory re- and this bill would prevent unfair judi- cise their right to vote and the will of lief but would still have the power to cial taxation and leave the power to their elected representatives is frus- issue a permanent injunction. These tax to elected representatives of the trated by judges who enjoy life tenure. limitations are designed to prevent the people. It is no wonder that millions of Ameri- federal judiciary from indefinitely bar- The bill would not limit the author- cans do not think their vote matters ring implementation of challenged ity of a federal court to order a remedy when they enact a referendum only to laws by issuing endless injunctions, which may lead a unit of local or state have it enjoined by a single district and facilitate the appeals process by government to decide to increase taxes. court judge. By improving the way fed- motivating courts to speedily handle A federal court would still have the eral courts analyze constitutional chal- constitutional challenges. What this power to issue a money judgment lenges to laws and initiatives, Congress reform essentially does is encourage against a State because the court will protect the rights of parties to the federal judiciary to rule on the would not be attempting to restructure challenge unconstitutional laws while merits of a case, and not use injunc- local government entities or mandat- at the same time reduce the ability of tions to keep a challenged law from ing a particular method or structure of activist judges to abuse their power going into effect or being heard by an State or local financing. This bill also and circumvent the will of the people. appeals court through the use of delay- doesn’t limit the remedial authority of I want to take a few moments to ing tactics. State courts in any case, including again describe how this legislation will The bill also proposes to require that cases raising issues of federal law. All curb the ability of federal judges to en- a notice of appeal must be filed not the bill does is prevent federal courts gage in judicial activism. The first re- more than fourteen days after the date from having the power to order elected form would require a three judge panel of an order granting an interlocutory representatives to raise taxes. This is to hear and issue interlocutory and injunction and the appeals court would moderate reform which prevents judi- permanent injunctions regarding chal- lack jurisdiction over an untimely ap- cial activism and unfair taxation while lenged laws at the district court level. peal of such an order. The court of ap- preserving the federal courts power to The current system allows a single fed- peals would apply a de novo standard of order remedial measures. January 19, 1999 CONGRESSIONAL RECORD — SENATE S703 Another important provision of the hear these vacuous motions designed to of defense in support of some of the bill would prevent a federal court from mock and frustrate the judicial sys- most vulnerable members of our soci- prohibiting State or local officials tem. ety—thousands of missing, exploited, from re-prosecuting a defendant. This Finally, the bill proposes to prevent homeless, or runaway children. It is a legislation is designed to clarify that federal judges from entering or carry- tragedy in our Nation that each year federal habeas courts lack the author- ing out any prisoner release order that there are as many as over 114,000 at- ity to bar retrial as a remedy. would result in the release from or tempted child abductions, 4,500 child This part of the legislation was co- nonadmission to a prison on the basis abductions reported to the police, sponsored by Congressman PITTS and of prison conditions. This provision ef- 450,000 children who run away, and Senator SPECTER in response to a high- fectively will preclude activist judges 438,000 children who are lost, injured, ly-publicized murder case in the Con- from circumventing mandatory mini- or missing. I am told that this is a gressman’s district. Sixteen year old mum sentencing laws by stripping fed- growing problem even in my State of Laurie Show was harrassed, stalked eral judges of jurisdiction to enter such Utah. and assaulted for six months by the de- orders. This will ensure that the tough Families who have written to me fendant, who had a vendetta against sentencing laws approved by voters to have shared the pain of a lost or miss- Show for briefly dating the defendant’s keep murderers, rapists, and drug deal- ing child. While missing, lost, on the boyfriend. After luring Show’s mother ers behind bars for lengthy terms will run, or abducted, each of these children from their residence, the defendant and not be ignored by activist judges who is at high risk of falling into the dark- an accomplice forcefully entered the improperly use complaints of prison ness of drug abuse, sexual abuse and Show home, held the victim down, and conditions filed by convicts as a vehi- exploitation, pain, hunger, and injury. slit her throat with a butcher knife, cle to release violent offenders back on Each of these children is precious, and killing her. After the defendant was to our streets. It will also prevent any deserves our efforts to save them. The convicted in state court, she filed a ha- federal judge from ever endangering bill I am introducing today is a step in beas petition in which she alleged pros- families and children in our commu- that direction. My bill reauthorizes and improves ecutorial misconduct and averred her nities by preventing these judges from the Missing Children’s Assistance Act actual innocence. A federal district releasing prisoners based on prison and the Runaway and Homeless Youth court judge not only accepted this ar- conditions. Act. First,this bill revises the Missing gument and released the defendant, but Congress repeatedly has tried to en- Children’s Assistance Act in part by he also took the extraordinary step of sure that convicted prisoners stay recognizing the outstanding record of barring state and local officials from where they belong: in prison for the achievements of this National Center reprosecuting the woman. This judge term to which they were sentenced. for Missing and Exploited Children. It even went so far as to state that the This effort has been ongoing for over 10 will enable NCMEC to provide even defendant was the ‘‘first and foremost years. Consider the following examples: greater protection of our Nation’s chil- victim of this affair.’’ (1) In 1987, Congress passed the Sen- dren in the future. Second, this bill re- Congress has long supported the abil- tencing Guidelines which effectively authorizes and revitalizes the Runaway ity of a federal court to fashion cre- limited the probation of prisoners; (2) ative remedies to preserve constitu- and Homeless Youth Act. the 1994 Crime Bill contained incen- At the heart of the bill’s amendments tional protections, but the additional tives for States to pass Truth in Sen- to the Missing Children’s Assistance step of barring state or local officials tencing Laws which kept convicted Act is an enhanced authorization of ap- from reprosecution is without prece- prisoners incarcerated for longer peri- propriations for the National Center dent and an unacceptable intrusion on ods; and (3) the Prisoner Litigation Re- for Missing and Exploited Children. the rights of States. This bill, if en- form Act of 1996 allowed for the revoca- Under the authority of the Missing acted, will prevent this type of judicial tion of good time credit if prisoners children’s Assistance Act, the Office of activism from ever occurring again. filed malicious, repetitive and frivolous Juvenile Justice and Delinquency Pre- This bill also contains provisions for law suits while in prison. The reform vention (OJJDP) has selected and given the termination of prospective relief bill being introduced today will further grants to the Center for the last four- when it is no longer warranted to cure Congress’ ongoing efforts to provide teen years to operate a national re- a violation of a federal right. Once a safer streets for all Americans by en- source center located in Arlington, Vir- violation that was the subject of a con- suring that convicted prisoners who ginia and a national 24-hour toll-free sent decree has been corrected, a con- pose a danger to our communities are telephone line. The Center provides in- sent decree must be terminated unless not released prior to the expiration of valuable assistance and training to law the court finds that an ongoing viola- their mandated sentences. enforcement around the country in tion of a federal right exists, the spe- This timely legislation is a measured cases of missing and exploited children. cific relief is necessary to correct the effort to improve the way the federal The Center’s record is quite impressive, violation of a Federal right, and no judiciary works. It is not an attempt to and its efforts have led directly to a other relief will correct the violation infringe upon judicial independence. To significant increase in the percentage of the Federal right. The party oppos- the contrary, this reform bill is a sen- of missing children who are recovered ing the termination of relief has the sible, balanced attempt to promote ju- safely. burden of demonstrating why the relief dicial efficiency and to prevent egre- In fiscal year 1999, the Center re- should not be terminated, and the gious judicial activism. I encourage all ceived an earmark of $8.12 million in court is required to grant the motion of my colleagues to act swiftly on and the Departments of Commerce, Justice, to terminate if the opposing party fails support this truly needed legislation. and State Appropriations conference to meet its burden. These provisions report. In addition, the Center’s Jimmy prevent consent decrees from remain- By Mr. HATCH (for himself and Ryce Training Center received $1.25 ing in effect once a proper remedy has Mr. DEWINE): million. been implemented, thereby preventing S. 249. A bill to provide funding for The legislation I am introducing judges from imposing consent decrees the National Center for Missing and today continues and formalizes that go beyond the requirements of Exploited Children, to reauthorize the NCMEC’s long partnership with the law. Runaway and Homeless Youth Act, and Justice Department and OJJDP, by di- The proposed reform law also in- for other purposes; to the Committee recting OJJDP to make an annual cludes provisions designed to dissuade on the Judiciary. grant to the Center, and authorizing prisoners from filing frivolous and ma- INTRODUCTION OF THE MISSING, EXPLOITED, annual appropriations of $10 million for licious motions by requiring that the AND RUNAWAY CHILDREN PROTECTION ACT fiscal years 1999 through 2004. complainant prisoner pay for the costs Mr. HATCH, Mr. President, today I NCMEC’s exemplary record of per- of the filings. These provisions will un- am proud to introduce the Missing, Ex- formance and success, as demonstrated doubtedly curb the number of frivolous ploited, and Runaway Children Protec- by the fact that NCMEC’s recovery motions filed by prisoners and thus, re- tion Act of 1999. This bill reauthorizes rate has climbed from 62% to 91%, jus- lieve the courts of the obligation to two vital laws that serve a crucial line tifies action by Congress to formally S704 CONGRESSIONAL RECORD — SENATE January 19, 1999 recognize it as the nation’s official ing example of the type of public-pri- permitted to perform their important missing and exploited children’s cen- vate partnership the Congress should function of upholding federal law. ter, and to authorize a line-item appro- encourage and recognize. The bill I am introducing today is a priation. This bill will enable the Cen- The second part of the bill I am in- careful solution to a troubling prob- ter to focus completely on its missions, troducing today reforms and stream- lem—the application of state ethics without expending the annual effort to lines the Runaway and Homeless Youth rules in federal court, and particularly obtain authority and grants from Act, targeting federal assistance to to federal prosecutors. In short, my bill OJJDP. It also will allow the Center to areas with the greatest need, and mak- will subject federal prosecutors to the expand its longer-term arrangements ing numerous technical changes. Ac- bar rules of each state in which they with domestic and foreign law enforce- cording to the National Network for are licensed unless such rules are in- ment entities. By providing and au- Youth, the Runaway and Homeless consistent with federal law or the ef- thorization, the bill also will allow for Youth Act provides ‘‘critical assistance fectuation of federal policy or inves- better congressional oversight of the to youth in high-risk situations all tigations. It also sets specific stand- Center. over the country.’’ Its three programs, ards for federal prosecutorial conduct, The record of the Center, described discussed in more detail below, benefit to be enforced by the Attorney Gen- briefly below, demonstrates the appro- those children truly in need and at eral. Finally, it establishes a commis- priateness of this authorization. For high risk of becoming addicted to sion of federal judges, appointed by the fourteen years the Center has served as drugs, sexually exploited or abused, or Chief Justice, to review and report on the national resource center and clear- involved in criminal behavior. the interrelationship between the du- inghouse mandated by the Missing The cornerstone of the Runaway and ties of federal prosecutors and regula- Children’s Assistance Act. The Center Homeless Youth Act is the Basic Cen- tion of their conduct by state bars and has worked in partnership with the De- ter Program which provides grants for the disciplinary procedures utilized by partment of Justice, the Federal Bu- temporary shelter and counseling for the Attorney General. reau of Investigation, the Department children under age 18. My home state No one condones prosecutorial ex- of Treasury, the State Department, of Utah received over $378,000 in grants cesses. There have been instances and many other federal and state agen- in FY 1998 under this program, and I where law enforcement, and even some cies in the effort to find missing chil- have received requests from Utah orga- federal prosecutors, have gone over- dren and prevent child victimization. nizations such as the Baker Youth board. Unethical conduct by any attor- The trust the federal government has Service Home to reauthorize this im- ney is a matter for concern. But when placed in NCMEC, a private, non-profit portant program. engaged in by a federal prosecutor, un- corporation, is evidenced by its unique Community-based organizations also ethical conduct cannot be tolerated. access to the FBI’s National Crime In- may request grants under the two re- For as Justice Sutherland noted in formation Center, and the National lated programs, the Transitional Liv- 1935, the prosecutor is not just to win a Law Enforcement Telecommunications ing and the Sexual Abuse Prevention/ case, ‘‘but that justice shall be done. System (NLETS). Street Outreach programs. The Transi- . . . It is as much his duty to refrain NCMEC has utilized the latest in tional Living grants provide longer from improper methods calculated to technology, such as operating the Na- term housing to homeless teens aged 16 produce a wrongful conviction as it is tional Child Pornography Tipline, es- to 21, and aim to move these teens to to use every legitimate means to bring tablishing its new Interent website, self-sufficiency and to avoid long-term about a just one.’’ www.missingkids.com, which is linked dependency on public assistance. The We must, however, ensure that the with hundreds of other websites to pro- Sexual Abuse Prevention/Street Out- rules we adopt to ensure proper pros- vide real-time images of breaking cases reach Program targets homeless teens ecutorial conduct are measured and of missing children, and, beginning this potentially involved in high risk be- well-tailored to that purpose. As my year, establishing a new CyberTipline haviors. colleagues may recall, last year’s om- on child exploitation. In addition, the amendment reau- nibus appropriations act included a NCMEC has established a national thorizes the Runaway and Homeless very controversial provision known to and increasingly worldwide network, Youth Act Rural Demonstration most of my colleagues simply as the linking NCMEC online with each of the Projects which provide assistance to ‘‘McDade provision,’’ after its House missing children clearinghouses oper- rural juvenile populations, such as in sponsor, former Representative Joe ated by the 50 states, the District of my state of Utah. Finally, the amend- McDade. Columbia and Puerto Rico. In addition, ment makes several technical correc- This well-intentioned but ill-advised NCMEC works constantly with inter- tions to fix prior drafting errors in the provision was adopted to set ethical national law enforcement authorities Runaway and Homeless Youth Act. standards for federal prosecutors and such as Scotland Yard in the United The provisions of this bill will other attorneys for the government. In Kingdom, the Royal Canadian Mounted strengthen our commitment to our my view, it was not the measured and Police, INTERPOL headquarters in youth. I urge my colleagues to support well-tailored law needed to address the Lyon, France and others. This network this legislation, which will strengthen legitimate concerns its sponsors sought enables NCMEC to transmit images the Missing Children’s Assistance Act, to redress. Nor was I alone in this view. and information regarding missing the National Center for Missing and So great was the concern over its im- children to law enforcement across Exploited Children, and the Runaway pact, in fact, that its effective date was America and around the world in- and Homeless Youth Act, and thus im- delayed until six months after enact- stantly. NCMEC also serve as the U.S. prove the safety of our Nation’s chil- ment. That deadline is approaching. In State Department’s representative at dren. my view, if allowed to take effect in its child abduction cases under the Hague present form, the McDade provision Convention. By Mr. HATCH (for himself, Mr. would cripple the ability of the Depart- The record of NCMEC is dem- DEWINE, and Mr. NICKLES): ment of Justice to enforce federal law onstrated by the 1,203,974 calls received S. 250. A bill to establish ethical and cede authority to regulate the con- at its 24-hour toll-free hotline, standards for Federal prosecutors, and duct of federal criminal investigations 1(800)THE LOST, the 146,284 law en- for other purposes. and prosecutions to more than 50 state forcement, criminal/juvenile justice, FEDERAL PROSECUTOR ETHICS ACT bar associations. and healthcare professionals trained, Mr. HATCH. Mr. President, I am As enacted last fall, the McDade pro- the 15,491,344 free publications distrib- pleased today to introduce an impor- vision adds a new section 530B to title uted, and, most importantly, by its tant piece of corrective legislation— 28 of the U.S. Code. In its most rel- work on 59,481 cases of missing chil- the Federal Prosecutor Ethics Act. evant part, it states that an ‘‘attorney dren, which has resulted in the recov- This bill will address in a responsible for the government shall be subject to ery of 40,180 children. Each of these fig- manner the critical issue of ethical State laws and rules . . . governing at- ures represents the activity of NCMEC standards for federal prosecutors, while torneys in each state where such attor- through spring 1998. NCMEC is a shin- ensuring that the public servants are ney engages in that attorney’s duties, January 19, 1999 CONGRESSIONAL RECORD — SENATE S705 to the same extent and in the same cepted, and essential, federal practice percolating in the federal bar for over a manner as other attorneys in that of moving for sentence reductions for decade—the diversity of ethical rules state.’’ co-conspirators who cooperate with governing attorney conduct in federal There are important practical consid- prosecutors by testifying truthfully for court. erations which persuasively counsel the government. How much worse will Presently, there is no uniform rule against allowing 28 U.S.C. 530B to take it be when this provision declares it that applies in all federal courts. Rath- effect unchanged. I have been a fre- open season of federal lawyers? er, applicable ethics rules have been quent critic of the trend toward the What will the costs of this provision left up to the discretion of local rules over-federalization of crime. Yet the be? At a minimum, the inevitable re- in each federal judicial district. Var- federal government has a most legiti- sult will be that violations of federal ious districts have taken different ap- mate role in the investigation and laws will not be punished, and justice proaches, including adopting state prosecution of complex multistate ter- will not be done. But there will be fi- standards based on either the ABA rorism, drug, fraud or organized crime nancial costs to the federal govern- Model Rules or the ABA Code, adopting conspiracies, in rooting out and pun- ment as well, as a result of defending one of the ABA models directly, and in ishing fraud against federally funded these frivolous challenges and from some cases, adopting both an ABA programs such as Medicare, Medicaid, higher costs associated with inves- model and the state rules. and Social Security, in vindicating the tigating and prosecuting violations of This variety of rules has led to confu- federal civil rights laws, in investigat- federal law. sion, especially in multiforum federal ing and prosecuting complex corporate All of this, however, is not to say practice. As a 1997 report prepared for crime, and in punishing environmental that nothing needs to be done on the the Judicial Conference’s Committee crime. issue of attorney ethics in federal on Rules of Practice and Procedure put It is in these very cases that Section court. Indeed, I have considerable sym- it, ‘‘Multiforum federal practice, chal- 530B will have its most pernicious ef- pathy for the objectives values Section lenging under ideal conditions, has fect. Federal attorneys investigating 530B seeks to protect. All of us who at been made increasingly complex, and prosecuting these cases, which fre- one time or another have been the sub- wasteful, and problematic by the dis- quently encompass three, four, or five ject of unfounded ethical or legal array among federal local rules and states, will be subject to the differing charges, as I have been as well, know state ethical standards.’’ state and local rules of each of those the frustration of clearing one’s name. Moreover, the problem may well be states, plus the District of Columbia, if All no one wants more than I to ensure made worse if Section 530B takes effect they are based here. Their decisions that all federal prosecutors are held to in its present form. First, as enacted, will be subject to review by the bar and the highest ethical standards. But Sec- Section 530B contains an internal con- ethics review boards in each of each of tion 530B, as it was enacted last year, flict that will add to the confusion. these states at the whim of defense is not in my view the way to do it. Section 530B provides that federal at- counsel, even if the federal attorney is The bill I am introducing today ad- torneys are governed by both the state not licensed in that state. dresses the narrow matter of federal laws and bar rules and the federal Practices concerning contact with prosecutorial conduct in a responsible court’s local rules. These, of course, unrepresented persons or the conduct way, and I might add, in a manner that are frequently different, setting up the of matters before a grant jury, per- is respectful of both federal and state obvious quandary—which take prece- fectly legal and acceptable in federal sovereignty. As all of my colleagues dence? Finally, Section 530B might fur- court, will be subject to state bar rules. know, each of our states has at least ther add to the confusion, by raising For instance, in many states, federal one federal judicial district. But the the possibility of different standards in attorneys will not be permitted to federal courts that sit in these districts the same court for opposing litigants— speak with represented witnesses, espe- are not courts of the state. They are, of private parties governed by the federal cially witnesses to corporate mis- course instrumentalities of federal sov- local rules and prosecutors governed by conduct, and the use of undercover in- ereignty, created by Congress pursuant Section 530B. vestigations will at a minimum be hin- to its power under Article III of the The U.S. Judicial Conference’s Rules dered. In other states, section 530B Constitution, which vests the judicial Committee has been studying this mat- might require—contrary to long-estab- power of the United States in ‘‘one su- ter, and is considering whether to issue lished federal grand jury practice—that preme Court and in such inferior ethics rules pursuant to its authority prosecutors present exculpatory evi- Courts as the Congress may from time under the federal Rules Enabling Act. I dence to the grand jury. Moreover, to time ordain and establish.’’ believe that this is an appropriate de- these rules won’t have to be in effect in As enacted, Section 530B is in my bate to have, and that it may be time the district where the subject is being view a serious dereliction of our Con- for the federal bar to mature. The days investigated, or where the grand jury is stitutional duty to establish inferior are past when federal practice was a sitting to have these effects. No, these federal courts. Should this provision small side line of an attorney’s prac- rules only have to be in effect some- take effect, Congress will have ceded tice. Practice in federal court is now where the investigation leads, or the the right to control conduct in the fed- ubiquitous to any attorney’s practice federal attorney works, to handcuff eral courts to more than fifty state bar of law. It is important, then, that there federal law enforcement. associations, at a devastating cost to be consistent rules. Indeed, for that In short, Section 530B will affect federal sovereignty and the independ- very reason, we have federal rules of every attorney in every department ence of the federal judiciary. Simply evidence, criminal procedure, and civil and agency of the federal government. put, the federal government, like each procedure. Perhaps it is time to con- It will effect enforcement of our anti- of our states, must retain for itself the sider the development of federal rules trust laws, our environmental laws authority to regulate the practice of of ethics, as well. prohibiting the dumping of hazardous law in its own courts and by its own This is not to suggest, of course, a waste, our labor laws, our civil rights lawyers. Indeed, the principle of federal challenge to the traditional state regu- laws, and as I said before, the integrity sovereignty in its own sphere has been lation of the practice of law, or the of every federal funding program. well established since Chief Justice proper control by state Supreme Section 530B is also an open invita- Marshall’s opinion in McCulloch v. Courts of the conduct of attorneys in tion to clever defense attorneys to sty- Maryland [17 U.S. (4 Wheat.) 316, 1819]. state court. The assertion of federal mie federal criminal or civil investiga- However, it may only be a first step. sovereignty over the conduct of attor- tions by raising bogus defenses or For the problem of rules for the con- neys in federal courts will neither im- bringing frivolous state bar claims. In- duct of attorneys in federal court af- pugn nor diminish the sovereign right deed, this is happening even without fects more than just prosecutors. It af- of states to continue to do the same in Section 530B as the law of the land. fects all litigants in each of our federal state courts. However, the administra- The most recent example is the use of courts, who have a right to know what tion of justice in the federal courts re- a State rule against testimony buying the rules are in the administration of quires the consideration of uniform to brand as ‘‘unethical’’ the long ac- justice. This is a problem that has been rules to apply in federal courts and S706 CONGRESSIONAL RECORD — SENATE January 19, 1999 thus, I will be evaluating proposals to tinue to recognize the Deity in our thirds majorities for increasing taxes; set uniform rules governing the con- Pledge of Allegiance by affirming that to the Committee on the Judiciary. duct of attorneys in federal court. we are a Nation ‘‘under God.’’ Our cur- Mr. KYL. Mr. President, I rise today Mr. President, the legislation I am rency is inscribed with the motto, ‘‘In on behalf of myself and Senators ABRA- introducing today is of vital impor- God We Trust’’. In this Body, we open HAM, ALLARD, ASHCROFT, BROWNBACK, tance to the continued enforcement of the Senate and begin our workday with COVERDELL, CRAPO, FRIST, GRAMM, federal law. Its importance is com- the comfort and stimulus of voluntary GRAMS, HAGEL, HELMS, HUTCHISON, pounded by the deadline imposed by group prayers. I would note that this INHOFE, MACK, MCCONNELL, SESSIONS, the effective date of Section 530B. I practice has been upheld as constitu- SHELBY, SMITH of New Hampshire, and urge my colleagues to join me in this tional by the Supreme Court. THOMPSON, to introduce the Tax Limi- effort, and support the Federal Pros- It is unreasonable that the oppor- tation Amendment, a joint resolution ecutor Ethics Act. tunity for the same beneficial experi- that proposes to amend the Constitu- ence is denied to the boys and girls who tion to require a two-thirds vote of the By Mr. THURMOND: attend public schools. This situation House and Senate to raise taxes. S.J. Res. 1. A joint resolution propos- simply does not comport with the in- Mr. President, this is an idea that ing an amendment to the Constitution tentions of the framers of the Constitu- comes to us from the states. Voters of the United States relating to vol- tion and is, in fact, antithetical to the from around the country have approved untary school prayer; to the Commit- rights of our youngest citizens to free- similar restrictions in recent years— tee on the Judiciary. ly exercise their respective religions. It doing so in most cases by overwhelm- Mr. THURMOND. Mr. President, should be changed, without further ing margins. Most recently, a solid ma- today I am introducing the voluntary delay. jority of Montana voters approved an school prayer constitutional amend- The Congress should swiftly pass this amendment to their state’s constitu- ment. This bill is identical to S.J. Res. resolution and send it to the States for tion that requires voter approval of all 73, which I introduced in the 98th Con- ratification. This amendment to the new taxes and tax increases. That is a gress at the request of then President Constitution would clarify that it does far stronger constraint than what is Reagan and have reintroduced every not prohibit vocal, voluntary prayer in being proposed here. Congress since. the public school and other public in- By overwhelming majorities, voters This proposal has received strong stitutions. It emphatically states that in Arkansas, Maryland, and Virginia support from both sides of the aisle and no person may be required to partici- upheld their states tax-limitation ini- is of vital importance to our Nation. It pate in any prayer. The government tiatives, rejecting ballot propositions would restore the right to pray volun- would be precluded from drafting on November 3 last year that were de- tarily in public schools—a right which school prayers. This well-crafted signed to water down existing con- was freely exercised under our Con- amendment enjoys the support of an straints on tax increases. stitution until the 1960’s, when the Su- overwhelming number of Americans. Two years ago, also by overwhelming preme Court ruled to the contrary. I strongly urge my colleagues to sup- majorities, voters from Florida to Cali- Also, in 1985, the Supreme Court port prompt consideration and ap- fornia approved initiatives aimed at ruled an Alabama statute unconstitu- proval of this legislation during this limiting government’s ability to raise tional which authorized teachers in Congress. taxes. Florida’s Question One, which public schools to provide ‘‘a period of Mr. President I ask unanimous con- requires a two-thirds vote of the people silence ... for meditation or voluntary sent that the joint resolution be print- to enact or raise any state taxes or prayer’’ at the beginning of each school ed in the RECORD. fees, passed with 69.2 percent of the day. As I stated when that opinion was There being no objection, the joint vote. issued and repeat again: the Supreme resolution was ordered to be printed in Seventy percent of Nevada voters ap- Court has too broadly interpreted the the RECORD, as follows: proved the Gibbons amendment, requir- Establishment Clause of the First S.J. RES. 1 ing a two-thirds majority vote of the Amendment and, in doing so, has incor- Resolved by the Senate and House of Rep- state legislature to pass new taxes or rectly infringed on the rights of those resentatives of the United States of America in tax hikes. South Dakotans easily ap- children—and their parents—who wish Congress assembled, (two-thirds of each House proved an amendment requiring either to observe a moment of silence for reli- concurring therein), That the following article a vote of the people or a two-thirds is hereby proposed as an amendment to the gious or other purposes. vote of the legislature for any state tax Until the Supreme Court ruled in the Constitution of the United States, which shall be valid to all intents and purposes as increase. Engel and Abington School District de- part of the Constitution if ratified by the And California voters tightened the cisions, the Establishment Clause of legislatures of three-fourths of the several restrictions in the most famous tax the First Amendment was generally States within seven years from the date of limitation of all, Proposition 13, so understood to prohibit the Federal its submission to the States by the Congress: that all taxes at the local level now Government from officially approving, ‘‘ARTICLE — have to be approved by a vote of the or holding in special favor, any par- ‘‘Nothing in this Constitution shall be con- people. Of course, voters in my home ticular religious faith or denomination. strued to prohibit individual or group prayer state of Arizona overwhelmingly ap- In crafting that clause, our Founding in public schools or other public institutions. proved a state tax limit of their own in Fathers sought to prevent what had No person shall be required by the United 1992. originally caused many colonial Amer- States or by any State to participate in The Tax Limitation Amendment I prayer. Neither the United States nor any icans to emigrate to this country—an State shall compose the words of any prayer am introducing today would impose official, State religion. At the same to be said in public schools.’’. similar constraints on federal tax-rais- time, they sought, through the Free ing authority. It would require a two- Exercise Clause, to guarantee to all By Mr. KYL (for himself, Mr. thirds majority vote of each house of Americans the freedom to worship God ABRAHAM, Mr. ALLARD, Mr. Congress to pass any bill levying a new without government interference or re- ASHCROFT, Mr. BROWNBACK, Mr. tax or increasing the rate or base of straint. In their wisdom, they recog- COVERDELL, Mr. CRAPO, Mr. any existing tax. In short, any measure nized that true religious liberty pre- FRIST, Mr. GRAMM, Mr. GRAMS, that would take more out of the tax- cludes the government from both forc- Mr. HAGEL, Mr. HELMS, Mrs. payers’ pockets would require a super- ing and preventing worship. HUTCHISON, Mr. INHOFE, Mr. majority vote to pass. As Supreme Court Justice William MACK, Mr. MCCONNELL, Mr. I would note that the proposed Douglas once stated: ‘‘We are a reli- SESSIONS, Mr. SHELBY, Mr. amendment includes provisions that gious people whose institutions pre- SMITH of New Hampshire, and would allow Congress to waive the suppose a Supreme Being.’’ Nearly Mr. THOMPSON): supermajority vote requirement in every President since George Washing- S.J. Res. 2. A joint resolution propos- times of war, or when the United ton has proclaimed a day of public ing an amendment to the Constitution States is engaged in military conflict prayer. Moreover, we, as a Nation, con- of the United States to require two- which causes an imminent and serious January 19, 1999 CONGRESSIONAL RECORD — SENATE S707 threat to national security. But to en- TLA will ensure that no tax can be diciary Committee Chairman HENRY sure that such waiver authority is raised in the future without such con- HYDE, Senators HATCH and BIDEN, the truly reserved for such emergencies sensus. Department of Justice, the White and is not abused, any new taxes im- Mr. President, I invite my colleagues House, law enforcement officials, posed under a waiver could only remain to cosponsor the initiative, and I ask major victims’ rights groups, and such in effect for a maximum of two years. unanimous consent that the text of the diverse scholars as Professors Larry Mr. President, why is a tax-limita- joint resolution be reprinted in the Tribe and Paul Cassell. As a result of tion amendment necessary? RECORD. these discussions, the core values in The two largest tax increases in our There being no objection, the joint the original amendment remain un- nation’s history were enacted earlier resolution was ordered to be printed in changed, but the language has been re- this decade by only the slimmest of the RECORD, as follows: fined to better protect the interest of margins. In fact, President Clinton’s S.J. RES. 2 all parties. 1993 tax increase did not even win the Resolved by the Senate and House of Rep- Before I discuss the amendment in support of a majority of Senators. Vice resentatives of the United States of America in detail, I would like to thank Senator President GORE broke a 50 to 50 vote tie Congress assembled (two-thirds of each House FEINSTEIN for her efforts to advance to secure its passage. concurring therein), That the following article the cause of crime victims’ rights and Despite very modest efforts to cut is proposed as an amendment to the Con- for her very valuable work on the lan- taxes in the last few years, the effects stitution of the United States, which shall be guage of the amendment. She has been of the record-setting tax increases of valid to all intents and purposes as part of a tireless and invaluable advocate for 1990 and 1993 are still being felt today. the Constitution when ratified by the legis- the amendment. latures of three-fourths of the several States The tax burden imposed on the Amer- Mr. President, the scales of justice within seven years after the date of its sub- are imbalanced. The U.S. Constitution, ican people hit a peacetime high of 19.8 mission for ratification: percent of GDP in 1997 and, according mainly through amendments, grants ‘‘ARTICLE — to the Congressional Budget Office, is those accused of crime many constitu- ‘‘SECTION 1. Any bill to levy a new tax or continuing to rise—to 20.5 percent in tional rights, such as a speedy trial, a increase the rate or base of any tax may pass jury trial, counsel, the right against 1998 and 20.6 in 1999. That will be higher only by a two-thirds majority of the whole than any year since 1945, and it would number of each House of Congress. self-incrimination, the right to be free be only the third and fourth years in ‘‘SECTION 2. The Congress may waive sec- from unreasonable searches and sei- our nation’s entire history that reve- tion 1 when a declaration of war is in effect. zures, the right to subpoena witnesses, nues have exceeded 20 percent of na- The Congress may also waive section 1 when the right to confront witnesses, and tional income. Notably, the first two the United States is engaged in military con- the right to due process under the law. times revenues broke the 20 percent flict when causes an imminent and serious The Constitution, however, guaran- threat to national security and is so declared mark, the economy tipped into reces- tees no rights to crime victims. For ex- by a joint resolution, adopted by a majority ample, victims have no right to be sion. of the whole number of each House, which Already, economists are beginning to becomes law. Any provision of law which present, no right to be informed of project slower economic growth in would, standing alone, be subject to section hearings, no right to be heard at sen- coming years. Barring any further 1 but for this section and which becomes law tencing or at a parole hearing, no right shocks from abroad, growth for 1999 to pursuant to such a waiver shall be effective to insist on reasonable conditions of re- 2003 is estimated at about two percent. for not longer than 2 years. lease to protect the victim, no right to In fact, growth during the high-tax ‘‘SECTION 3. All votes taken by the House restitution, no right to challenge of Representatives or the Senate under this Clinton years has averaged only about unending delays in the disposition of article shall be determined by yeas and nays their case, and no right to be told if 2.3 percent annually. That compares to and the names of persons voting for and the 3.9 percent annual growth rate dur- against shall be entered on the Journal of they might be in danger from release ing the period after the Reagan tax each House respectively.’’. or escape of their attacker. This lack cuts and before the 1990 tax increase. of rights for crime victims has caused The heavy tax burden may not be the By Mr. KYL (for himself, Mrs. many victims and their families to suf- only reason for slow growth, but it is a FEINSTEIN, Mr. BIDEN, Mr. fer twice, once at the hands of the significant factor. GRASSLEY, Mr. INOUYE, Mr. criminal, and again at the hands of a With that in mind, I believe the DEWINE, Ms. LANDRIEU, Ms. justice system that fails to protect President and Congress should consider SNOWE, Mr. LIEBERMAN, Mr. them. The Crime Victim Rights reducing income-tax rates across the MACK, Mr. CLELAND, Mr. COVER- Amendment is a constitutional amend- board for all Americans. We will no DELL, Mr. SMITH of New Hamp- ment that would bring balance to the doubt have that debate about the need shire, Mr. SHELBY, Mr. HUTCH- judicial system by giving crime vic- for tax relief in coming months. But INSON, Mr. HELMS, Mr. FRIST, tims the rights to be informed, present, whether we agree to cut taxes or not, Mr. GRAMM, Mr. LOTT, and Mrs. and heard at critical stages throughout we—the President and Congress— HUTCHISON): their ordeal—the least the system owed should be able to agree that taxes are S.J. Res. 3. A joint resolution propos- to those it failed to protect. high enough and should not be raised ing an amendment to the Constitution Mr. President, the current version, further, at least not without the kind of the United States to protect the which is the 62d draft of the amend- of significant, broad-based and biparti- rights of crime victims; to the Com- ment, contains the rights that we be- san support that would be required mittee on the Judiciary. lieve victims should have: under the Tax Limitation Amendment. PROPOSING AN AMENDMENT TO THE CONSTITU- The amendment gives victims the Raising sufficient revenue to pay for TION OF THE UNITED STATES TO PROTECT THE rights: government’s essential operation is ob- RIGHTS OF CRIME VICTIMS To be notified of the proceedings; viously a necessary part of governing, Mr. KYL. Mr. President, to ensure To attend all public proceedings; To be heard at certain crucial stages but raising tax rates is not necessarily that crime victims are treated with in the process; the best way to raise revenue. As re- fairness, dignity, and respect, I rise to To be notified of the offender’s re- cent experience proves, it is a strong introduce, along with Senator FEIN- lease or escape; and growing economy—not high tax STEIN, a resolution proposing a con- To consideration for a trial free from rates—that generates substantial stitutional amendment to establish unreasonable delay; amounts of new revenue for the Treas- and protect the rights of victims of vio- To an order of restitution; ury. It was the growing economy that lent crime. I would like to update the To have the safety of the victim con- helped eliminate last year’s unified members on the latest form of the sidered in determining a release from budget deficit. Crime Victims Rights Amendment and custody; and In any event, voters around the coun- outline our plans for the 106th Con- To be notified of these rights and try seem to believe that raising taxes gress. standing to enforce them. should only be done when there is This joint resolution is the product These rights are the core of the broad support for the proposition. The of extended discussions with House Ju- amendment. S708 CONGRESSIONAL RECORD — SENATE January 19, 1999 Mr. President, if reform is to be U.S. Constitution. The Constitution is The amendment has strong bipartisan meaningful, it must be in the U.S. Con- too hard to change. All we need to do is support. It was cosponsored by 30 Re- stitution. Since 1982, when the need for pass some good statutes to make sure publicans and 12 Democrats, including a constitutional amendment was first that victims are treated fairly.’’ But leadership members such as Senators recognized by a Presidential Task statutes have been inadequate to re- LOTT, THURMOND, MACK, COVERDELL, Force on Victims of Crime, 32 states store balance and fairness for victims. CRAIG, BREAUX, REID, TORRICELLI, and have passed similar measures—by an The history of our country teaches us Ford (now retired). average popular vote of about 80 per- that constitutional protections are In the 106th Congress, Senator FEIN- cent. These state measures have mate- needed to protect the basic rights of STEIN and I will work hard to ensure rially helped protect crime victims; the people. Our criminal justice system the amendment’s passage. We plan to but they are inadequate for two rea- needs the kind of fundamental reform hold a hearing early in the Congress, sons: First, each amendment is dif- that can only be accomplished through followed by a markup and consider- ferent, and not all states have provided changes in our fundamental law—the ation by the full Senate. We welcome protection to victims; a Federal Constitution. comments and suggestions from Mem- amendment would establish a basic Attorney General Reno has con- bers and other interested parties. floor of crime victims’ rights for all firmed the point, noting that, ‘‘unless Again, I would like to thank Senator Americans, just as the Federal Con- the Constitution is amended to ensure DIANNE FEINSTEIN for her hard work on stitution provides for the accused. Sec- basic rights to crime victims, as will this amendment and for her tireless ef- ond, statutory and State constitu- never correct the existing imbalance in forts on behalf of crime victims. Mr. tional provisions are always subser- this country between defendants’ con- President, for far to long, the criminal vient to the Federal Constitution; so, stitutional rights and the haphazard justice system has ignored crime vic- in cases of conflict, the defendants’ patchwork of victims’ rights.’’ At- tims who deserve to be treated with rights—which are already in the U.S. tempts to establish rights by federal or fairness, dignity, and respect. Our Constitution—will always prevail. Our state statute, or even state constitu- criminal justice system will never be amendment will correct this imbal- tional amendment, have proven inad- truly just as long as criminals have ance. equate, after more then twenty years rights and victims have none. It is important to note that the num- of trying. Mr. President, I ask unanimous con- ber one recommendation in a recent 400 On behalf of the Department of Jus- sent that the text of the joint resolu- page report by the Department of Jus- tice, Ray Fisher, the Associate Attor- tion be printed in the RECORD. tice on victims rights and services that ney General, recently testified that There being no objection, the joint ‘‘the U.S. Constitution should be ‘‘the state legislative route to change resolution was ordered to be printed in amended to guarantee fundamental has proven less than adequate in ac- the RECORD, as follows: right for victims of crime.’’ The report cording victims their rights. Rather S.J. RES. 3 continued: ‘‘A victims’ rights constitu- than form a minimum baseline of pro- Resolved by the Senate and the House of Rep- tional amendment is the only legal tections, the state provisions have pro- resentatives of the United States of America in measure strong enough to rectify the duced a hodgepodge of rights that vary Congress assembled (two-thirds of each House current inconsistencies in victims’ from jurisdiction to jurisdiction. concurring therein), That the following article rights laws that vary significantly Rights that are guaranteed by the Con- is proposed as an amendment to the Con- from jurisdiction to jurisdiction on the stitution will receive greater recogni- stitution of the United States, which shall be State and Federal levels.’’ Further, valid for all intents and purposes as part of tion and respect, and will provide a na- the Constitution when ratified by the legis- ‘‘Granting victims of crime the ability tional baseline.’’ latures of three-fourths of the several States to participate in the justice system is A number of legal commentators within seven years from the date of its sub- exactly the type of participatory right have reached similar conclusions. In mission by the Congress: the Constitution is designed to protect the 1997 Harvard Law Bulletin, Profes- ARTICLE— and has been amendment to perma- sor Laurence Tribe has explained that SECTION 1. A victim of a crime of violence, nently ensure. Such rights include the the existing statutes and state amend- as these terms may be defined by law, shall right to vote on an equal basis and the ments ‘‘are likely, as experience to have the rights: right to be heard when the government date sadly shows, to provide too little to reasonable notice of, and not be ex- deprives one of life, liberty, or prop- real protection whenever they come cluded from, any public proceedings relating erty.’’ into conflict with bureaucratic habit, to the crime; Until crime victims are protected by to be heard, if present, and to submit a traditional indifference, sheer inertia, statement at all such proceedings to deter- the United States Constitution, the or any mention of an accused’s rights mine a conditional release from custody, and rights of victims will be subordinate to regardless of whether those rights are an acceptance of a negotiated plea, or a sen- the rights of the defendant. Indeed, the genuinely threatened.’’ He has also tence National Governors Association—by a stated, ‘‘there appears to be a consider- to the foregoing rights at a parole proceed- vote of 49–1—passed a resolution able bloody of evidence showing that, ing that is not public, to the extent those strongly supporting a constitutional even where statutory or regulatory or rights are afforded to the convicted offender; amendment for crime victims. The res- judge-made rules exist to protect the to reasonable notice of a release or escape from custody relating to the crime; olution stated: ‘‘Despite . . . wide- participatory rights of victims, such to consideration of the interest of the vic- spread State initiatives, the rights of rights often tend to be honored in the tim that any trial be free from unreasonable victims do not receive the same consid- breach. . . .’’ delay; eration or protection as the rights of Additionally, in the Baylor Law Re- to an order of restitution from the con- the accuses. These rights exist on dif- view, Texas Court of Appeals Justice victed offender; ferent judicial levels. Victims are rel- Richard Barajas has explained that to consideration for the safety of the vic- egated to a position of secondary im- ‘‘[i]t is apparent . . . that state con- tim in determining any conditional release from custody relating to the crime; and portance in the judicial process.’’ The stitutional amendments alone cannot to reasonable notice of the rights estab- resolution also stated that ‘‘The rights adequately address the needs of crime lished by this article. of victims have always received sec- victims.’’ Federal statutes are also in- SECTION 2. Only the victim or the victim’s ondary consideration within the U.S. adequate. Professor Cassell’s detailed lawful representative shall have standing to Judicial process, even though States 1998 testimony about the Oklahoma assert the rights established by this article. and the American people by a wide plu- City Bombing Case shows that, as he Nothing in this article shall provide grounds rality consider victims’ rights to be concluded, ‘‘federal statutes are insuf- to stay or continue any trial, reopen any fundamental. Protection of these ficient to protect the rights of crime proceeding or invalidate any ruling, except with respect to conditional release or res- rights is essential and can only come victims.’’ titution or to provide rights guaranteed by from a fundamental change in our Mr. President, I was pleased that in this article in future proceedings, without basic law: the U.S. Constitution.’’ July 1998 the Senate Judiciary Com- staying or continuing a trial. Nothing in this Some may say, ‘‘I’m all for victims’ mittee passed the amendment, S.J. article shall give rise to or authorize the cre- rights but they don’t need to be in the Res. 44, by a bipartisan vote of 11 to 6. ation of a claim for damages against the January 19, 1999 CONGRESSIONAL RECORD — SENATE S709 United States, a State, or political subdivi- against her attacker. But she has been The prohibition against double jeop- sion, or a public officer or employee. forced to change her name and contin- ardy; SECTION 3. The Congress shall have the ues to live in fear that her attacker The right to due process; power to enforce this article by appropriate may, one day, be released. When I was The right to a speedy trial and the legislation. Exceptions to the rights estab- lished by this article may be created only Mayor of San Francisco, she called me right to an impartial jury of one’s when necessary to achieve a compelling in- several times to notify me that peers; terest. Pavageau was up for parole. Amaz- The right to be informed of the na- SECTION 4. This article shall take effect on ingly, it was up to Mrs. Carlson to find ture and cause of the criminal accusa- the 180th day after the ratification of this ar- out when his parole hearings were. tion; ticle. The right to an order of restitution es- Mr. President, I believe this case rep- The right to confront witnesses; tablished by this article shall not apply to resents a travesty of justice—It just The right to counsel; crimes committed before the effective date shouldn’t have to be that way. I believe The right to subpoena witnesses—and of this article. so on. SECTION 5. The rights and immunities es- it should be the responsibility of the tablished by this article shall apply in Fed- state to send a letter through the mail However, nowhere in the text of the eral and State proceedings, including mili- or make a phone call to let the victim U.S. Constitution does there appear tary proceedings to the extent that the Con- know that her attacker is up for pa- any guarantee of rights for crime vic- gress may provide by law, juvenile justice role, and she should have the oppor- tims. proceedings, and proceedings in the District tunity to testify at this hearing. To rectify this disparity, Senator of Columbia and any commonwealth, terri- But today, in many states in this KYL and I are putting forth this Crime tory, or possession of the United States. great nation, victims still are not made Victims’ Rights Amendment. This pro- Mrs. FEINSTEIN. Mr. President, I aware of the accused’s trial, many vides for certain rights for victims of rise today with my colleague, Senator times are not allowed in the courtroom crime: KYL, to once again introduce a con- during the trial, and are not notified The right to be notified of public pro- stitutional amendment to provide when a convicted offender is released ceedings in their case; rights for victims of violent crime. from prison. The right not be excluded from these We have achieved significant I have vowed to do everything in my proceedings; progress in our effort to pass the power to add a bit of balance to our na- The right to be heard at proceedings amendment. After working exten- tion’s justice system. This is why Sen- to determine a release from custody, sively—indeed, exhaustively—with ator KYL and I have crafted the Crime sentencing, or acceptance of a nego- prosecutors, law professors, the Justice Victim’s Rights Amendment before us tiated plea; Department, the White House Coun- today. The right to notice of the offender’s sel’s Office, and leaders of victims The people of California were the release or escape; groups from around the country to first in the nation to pass a crime vic- The right to consideration for the in- carefully craft and hone the amend- tims’ amendment to the state constitu- terest of the victim in a trial free from ment’s language, we succeeded in tion in 1982—the imitative Proposition unreasonable delay; bringing the amendment to markup in 8—and I supported its passage. This The right to an order of restitution the Judiciary Committee. measure gave victims the right to res- from the convicted offender; After numerous committee business titution, the right to testify at sen- The right to consideration for the meetings, and one of the most high- tencing, probation and parole hearings, safety of the victim in determining any minded debates in which I have been established a right to safe and secure release from custody; and privileged to participate, the Judiciary public school campuses, and made var- The right to notice of your rights as Committee passed the amendment by a ious changes in criminal law. Califor- a victim. strong, bipartisan vote. Unfortunately, nia’s Proposition 8 represented a good Conditions in our nation today are with the press of final business at the start to ensure victims’ rights. significantly different from those in end of the Congress, there was not suf- Since the passage of Proposition 1789, when the founding fathers wrote ficient time to consider the amend- Eight, 31 more states have passed con- the Constitution without providing ex- ment on the Senate floor and work it stitutional amendments guaranteeing plicitly for the rights of crime victims. through the House. the rights of crime victims. Just this In 1789, there weren’t 9 million victims So here we are now, carrying the past November, Mississippi, Montana of violent crime every year. In fact, fight forward into this new, 106th Con- and Tennessee added victims’ rights there are more victims of violent crime gress. We are fighting to ensure that amendments to their state constitu- each year in this country now than the 8.6 million victims of violent crime tions. These amendments were over- there were people in the country when in the country receive the fair treat- whelmingly supported by the voters, the Constitution was written. ment by the judicial system which winning with 93%, 71% and 89% of the Moreover, there is good reason why they deserve. Too often in America vic- vote, respectively. defendants’ rights were embedded in tims of violent crime are victimized a But citizens in other states lack the Constitution in 1789 and victims’ second time, by the government. these basic rights. The 32 different rights were not—the way the criminal Let me give you an example of what state constitutional amendments differ justice system worked then, victims I’m talking about. What really focused from each other, representing a patch- did not need any guarantee of these my attention on the need for greater work quilt of rights that vary from rights. protection of victims’ rights was a par- state to state. And even in those states In America in the late 18th century ticularly horrifying case in 1974, in San which have state amendments, crimi- and well into the 19th century, public Francisco, when a man named Angelo nals can assert rights grounded in the prosecutors did not exist. Victims Pavageau broke into the house of the federal constitution to try to trump could, and did, commence criminal Carlson family in Portero Hill. those rights. cases themselves, by hiring a sheriff to Pavageau tied Mr. Carlson to a chair, The United States Constitution guar- arrest the defendant, and initiating a bludgeoning him to death with a ham- antees numerous rights to the accused private prosecution. The core rights in mer, a chopping block, and a ceramic in our society, all of which were estab- our amendment—to notice, to attend, vase. He then repeatedly raped lished by amendment to the Constitu- and to be heard—were inherently made Carlson’s 24-year-old wife, breaking tion. I steadfastly believe that this na- available to the victim. As Juan several of her bones. He slit her wrist, tion must attempt to guarantee, at the Cardenas, writing in the Harvard Jour- tried to strangle her with a telephone very least, some basic rights to the nal of Law and Public Policy, observed, cord, and then, before fleeing, set the millions victimized by crime each year. ‘‘At trial, generally, there were no law- Carlson’s home on fire—cowardly For those accused of crimes in this yers for either the prosecution or the reteating into the night, leaving this country, the Constitution specifically defense. Victims of crime simply acted family to burn up in flames. protects: as their own counsel, although wealthi- But Mrs. Carlson survived the fire. The right to a grand jury indictment er crime victims often hired a prosecu- She courageously lived to testify for capital or infamous crimes; tor.’’ S710 CONGRESSIONAL RECORD — SENATE January 19, 1999

Gradually, public prosecution re- Moreover, state amendments lack We urge Senators HATCH, the distin- placed the system of private prosecu- the force that a federal constitutional guished Chairman of the committee, to tion. With the explosive growth of amendment would have, and too often schedule a hearing on the amendment crime in this country in recent years are given short shrift: in January or February, with a markup (the rate of violent crime has more Maryland has a state amendment. to follow shortly thereafter. It is our than quadrupled over the last 35 years), But when Cheryl Rae Enochs Resch hope that the committee can complete it became easier and easier for the vic- was beaten to death with a ceramic its action with all deliberate speed, and tim to be left aside in the process. beer mug by her husband, her mother we call upon our distinguished Leaders, As other scholars have noted: was not notified of this killer’s early Senators LOTT and DASCHLE, to com- With the establishment of the prosecutor release only two and a half years into mit to a floor vote on the amendment the conditions for the general alienation of his ten year sentence, and was not during National Victims’ Rights Week the victim from the legal process further in- given the opportunity to be heard in late April. crease. The victim is deprived of his ability about this release, in violation of the After two hundred years, doesn’t this to determine the course of a case and is de- state amendment. Nation owe something to the millions prived of the ability to gain restitution from Arizona has a state amendment. But of victims of violent crime? I believe the proceedings. Under such conditions the an independent audit of victim-witness that is our obligation and should be incentives to report crime and to cooperate programs in four Arizona counties, in- with the prosecution diminish. As the impor- our biggest priority—not only for the tance of the prosecution increases, the role cluding Maricopa County where Phoe- crime victims, but, for all Americans— of the victim is transformed from principal nix is located, found that: to ensure passage of a Crime Victims’ actor to a resource that may be used at the Victims were not consistently noti- Rights Constitutional Amendment. prosecutor’s discretion. fied of hearing during which conditions I want to personally thank Senator of a defendant’s release were discussed Thus, we see why the Constitution KYL for his tireless efforts to accom- must be amended to guarantee these ... plish this amendment, and to say that Victims were not consistently . . . rights: I look forward to continuing to work conferred with by prosecutors regard- There was no need to guarantee these with him in the months to come. ing plea bargains . . .; and rights in the Constitution in 1789; Victims were not consistently . . . The criminal justice system has By Mr. KYL: provided with an opportunity to re- changed dramatically since then; and S.J. Res. 4. A joint resolution propos- quest post-conviction notification. ing an amendment to the Constitution The prevalence of crime in America Ohio has a state amendment. But has changed dramatically creating the of the United States to provide that ex- when the murderer of Maxine John- penditures for a fiscal year shall exceed need and circumstances to respond to son’s husband change his plea, Maxine neither revenues for such fiscal year these developments and restore balance was not notified of the public hearing, nor 19 per centum of the Nation’s gross in the criminal justice system by guar- and then was not given the opportunity domestic product for the calendar year anteeing the rights of violent crime to testify at his sentencing, as provided ending before the beginning of such fis- victims in the Constitution. for in Ohio law. Among the amendment’s supporters A Justice Department-supported cal year; to the Committee on the Ju- are Professor Laurence Tribe of the study of the implementation of state diciary. Harvard Law School. victims’ rights amendments, released BALANCED BUDGET/SPENDING LIMITATION Let me just briefly quote portions of last year, made similar findings: AMENDMENT his testimony from the House hearing Even in states with strong legal protec- Mr. KYL. Mr. President, I rise today on the amendment last Congress: tions for victims’ rights, the Victims’ Rights to introduce the Balanced Budget/ The rights in question—rights of crime vic- study revealed that many victims are denied Spending Limitation Amendment—a tims not to be victimized yet again through their rights. Statutes themselves appear to joint resolution proposing to amend the process by which government bodies and be insufficient to guarantee the provision of the Constitution of the United States officials prosecute, punish, and release the victims’ rights. to establish both a federal spending accused or convicted offender—are indis- Nearly two-thirds of crime victims, even in limit and a requirement that the fed- putably basic human rights against govern- states with strong victims’ rights protection, were not notified that the accused offender eral government maintain a balanced ment, rights that any civilized system of jus- budget. tice would aspire to protect and strive never was out on bond. to violate. Nearly half of all victims, even in the Mr. President, it seems to me that al- [O]ur Constitution’s central concerns in- strong protection states, did not receive no- though we may have succeeded in bal- volve protecting the rights of individuals to tice of the sentencing hearing—notice that is ancing the unified budget, we still have participate in all those government proc- essential if they are to exercise their right to two very different visions of where we esses that directly and immediately involve make a statement at sentencing. A substantial number of victims reported should be headed. Is a balanced budget those individuals and affect their lives in that they were not given an opportunity to the paramount goal, even if it comes some focused and particular way . . . The make a victim impact statement at sentenc- with substantially higher taxes and parallel rights of victims to participate in ing or parole. more spending? Or is the real goal of a these proceedings are no less basic, even though they find no parallel recognition in State amendments simply are not balanced budget to be more responsible the explicit text of the U.S. Constitution. enough—they provide different rights with people’s hard-earned tax dollars— The fact that the States and Congress, in different states, they do not exist at to limit government’s size and give within their respective jurisdictions, already all in others, and they are too often ig- people more choices and more control have ample affirmative authority to enact nored when they do exist. over their lives? Before we try to an- rules protecting these rights is . . . not a We implore members of this body to swer those questions, let us try to give reason for opposing an amendment alto- examine this amendment, and to help them some context. gether . . . The problem, rather, is that such When we balanced the unified budget rules are likely, as experience to date sadly to secure passage of this monumental shows, to provide too little real protection piece of legislation. last year, we did so by taxing and whenever they come into conflict with bu- The text of the amendment which we spending at a level of about $1.72 tril- reaucratic habit, traditional indifference, are introducing today is the very same lion. That is a level of spending that is sheer inertia, or any mention of an accused’s text which the Judiciary Committee 25 percent higher than when President rights regardless of whether those rights are passed on a strong bipartisan basis last Clinton took office just six years ago. genuinely threatened. summer. Sen KYL and I urge the lead- Our government now spends the equiv- Some people argue that state vic- ers of the Senate and of the committee alent of $6,700 for every man, woman, tims’ rights amendments are sufficient. to move this amendment expeditiously, and child in the country every year. However, crime victims throughout so that the clock does not run out on That is the equivalent of nearly $27,000 the country, including those in the us yet again. This amendment has been for the average family of four. But all other 18 states, deserve to have rights, the subject of three Senate hearings, of that spending comes at a tremen- just as we applied civil rights to people two hearings in the House, and an ex- dous cost to hard-working taxpayers. throughout our great nation 30 years tensive examination and debate in the The Tax Foundation estimates that ago. Judiciary Committee. the median income family in America January 19, 1999 CONGRESSIONAL RECORD — SENATE S711 saw its combined federal, state, and with a long list of programs to be fund- I urge my colleagues to consider the local tax bill climb to 37.6 percent of ed out of the budget surplus. And fear- need for a balanced budget amendment, income in 1997—up from 37.3 percent ful that if the President did not get his and the advantages of the Balanced the year before. That is more than the way he would veto the budget and tar Budget/Spending Limitation Amend- average family spends on food, cloth- Congress with the blame for another ment in particular. I ask unanimous ing, shelter, and transportation com- government shutdown, many Members consent that the text of the amend- bined. Put another way, in too many of Congress went along and voted for ment be printed in the RECORD. families, one parent is working to put this raid on the surplus. There being no objection, the joint food on the table, while the other is That was just the first in what is ex- resolution was ordered to be printed in working almost full time just to pay pected to be a series of efforts by Presi- the RECORD, as follows: the bill for the government bureauc- dent Clinton to spend down the surplus S. J. RES. 4 racy. in coming months. Another $2.5 billion Resolved by the Senate and House of Rep- Perhaps a different measure of how supplemental spending request is al- resentatives of the United States of America in heavy a tax burden the federal govern- ready in the works. Congress assembled (two-thirds of each House ment imposes would be helpful. Con- Coupled with a peacetime tax burden concurring therein), That the following article sider that federal revenues hit a peace- that is at an all-time high and growing, is proposed as an amendment to the Con- time high of 19.8 percent of Gross Do- this portends a dangerous return to the stitution of the United States, which shall be old ways of budget-busting, bigger gov- valid to all intents and purposes as part of mestic Product (GDP) in 1997 and, ac- the Constitution when ratified by the legis- cording to the Congressional Budget ernment—that is, unless we agree to abide by the lasting discipline of a con- latures of three-fourths of the several States Office, will continue to climb—to 20.5 stitutional requirement to balance the within seven years after the date of its sub- percent in 1998 and 20.6 percent in 1999. mission for ratification: budget. That will be higher than any year since The Balanced Budget/Spending Limi- ‘‘ARTICLE— 1945, and it would be only the third and tation Amendment would impose dis- ‘‘SECTION 1. Except as provided in this arti- fourth years in our nation’s entire his- cipline on Congress and the President cle, outlays of the United States Govern- tory that revenues have exceeded 20 in two ways. First, it would require ment for any fiscal year may not exceed its percent of national income. Notably, receipts for that fiscal year. that we maintain a balanced federal ‘‘SECTION 2. Except as provided in this arti- the first two times revenues broke the budget. Second, consistent with the vi- 20 percent mark, the economy tipped cle, the outlays of the United States Govern- sion of limited government, it would ment for a fiscal year may not exceed 19 per into recession. limit federal spending to 19 percent of centum of the Nation’s gross domestic prod- For me, it is not enough to balance the national income, as measured by uct for the last calendar year ending before the budget if it means that hard-work- the Gross Domestic Product. That is the beginning of such fiscal year. ing families continue to be overtaxed. roughly the level of revenue collected ‘‘SECTION 3. The Congress may, by law, pro- It is not enough to balance the budget by the government over the last 40 vide for suspension of the effect of sections 1 if government continues to grow, seem- or 2 of this article for any fiscal year for years. Interestingly, a December 1998 which three-fifths of the whole number of ingly without limits, taking choice and report by the Joint Economic Commit- freedom away from people in the proc- each House shall provide, by a roll call vote, tee concludes that the optimal level of for a specific excess of outlays over receipts ess. And it is not enough to balance the spending may actually be lower—17.5 or over 19 per centium of the Nation’s gross budget by collecting so much in taxes percent of GDP. domestic product for the last calendar year that it leads the economy into reces- In other words, beyond a certain ending before the beginning of such fiscal sion. point—the Joint Committee suggests it year. A balanced budget is not the only is 17.5 percent of GDP—government’s ‘‘SECTION 4. Total receipts shall include all goal, or even the highest goal. A bal- claim to private resources can actually receipts of the United States Government ex- anced budget should be the way we find cept those derived from borrowing. Total hurt the economy. Consider, for exam- outlays shall include all outlays of the what is the appropriate size and scope ple, that economic growth during the of government—the way to make United States Government except those for high-tax Clinton years has averaged the repayment of debt principal. Washington more respectful of hard- only about 2.3 percent annually, where- ‘‘SECTION 5. This article shall apply to the working taxpayers’ earnings and their as we averaged 3.9 percent annual second fiscal year beginning after its ratifi- desire to do right by themselves and growth during the period after the cation and to subsequent fiscal years.’’. their families. That is where our para- Reagan tax cuts and before the 1990 tax mount concern should be—with the increase. By Mr. GRAMM (for himself and taxpayers. Raising sufficient revenue to pay for Mr. GORTON): Mr. President, last year was the first government’s essential operations is S.J. Res. 5. A joint resolution to pro- time in nearly 30 years that Washing- obviously a necessary part of govern- vide for a Balanced Budget Constitu- ton managed to balance its books. In ing, but raising tax rates is not nec- tional Amendment that prohibits the fact, we posted a record unified budget essarily the best way to raise revenue. use of Social Security surpluses to surplus of $70 billion, and we did so As recent experience proves, it is a achieve compliance; to the Committee even though we have no constitutional strong and growing economy—not high on the Judiciary. requirement for a balanced budget. tax rates—that generates substantial BALANCED BUDGET CONSTITUTIONAL Some will use that fact to argue there amounts of new revenue for the Treas- AMENDMENT is no need for a balanced budget ury. It was the growing economy that Mr. GRAMM. President, I rise today amendment. I would suggest to them helped eliminate last year’s unified with Senator GORTON to introduce a that they look back at what happened budget deficit. Balanced Budget Constitutional last October. The advantage of the Balanced Budg- Amendment which is designed to pro- Just three weeks—exactly 21 days— et/Spending Limitation Amendment is tect Social Security. Since we last con- after confirming that the federal gov- that it keeps our eye on the ball. It sidered a balanced budget amendment ernment had indeed achieved its first tells Congress to limit spending. And in the Senate, we have achieved bal- budget surplus in a generation, Con- by linking spending to economic ance in the unified federal budget for gress passed, and the President signed, growth, it gives Congress a positive in- the first time in 30 years, and have a bill that used fully a third of the sur- centive to enact pro-growth economic made substantial progress toward plus for increased spending on a vari- and tax policies. Only a healthy and achieving balance without relying on ety of government programs other than growing economy—measured by GDP— the surpluses currently accumulating Social Security, tax relief, or repay- would increase the dollar amount that in Social Security. For 1998, the De- ment of the national debt. Congress is allowed to spend, although partment of the Treasury reports that Many people will recall that Presi- always proportionate to the size of the the federal government ran a unified dent Clinton pledged in his State of the economy. In other words, 19 percent of budget surplus of $70 billion, and an on- Union address a year ago to ‘‘save a larger GDP represents more revenue budget deficit of $29 billion when the every penny of any surplus’’ for Social to the Treasury than 19 percent of a $99 billion surplus in Social Security is Security, yet he was the first in line smaller GDP. not counted. This on-budget deficit is S712 CONGRESSIONAL RECORD — SENATE January 19, 1999 projected to disappear by 2002 under this year, candidates for Senate office our tangled campaign finance system. I current budget policies. spent over 15 percent more than their fear McCain-Feingold never will be en- The Balanced Budget Constitutional counterparts in 1996. acted, and that even if it passes, it will Amendment I am introducing today is We can be sure that in 2000, election not withstand the Supreme Court’s identical to S.J. Res. 1 of the 105th spending will skyrocket to new, as- scrutiny. Congress, which received 66 votes in tounding levels. And we can be equally Since 1976, the Supreme Court has the Senate on March 4, 1997, except sure that this will add to the public’s made it clear that it will not uphold that surplus revenues in Social Secu- already overwhelming cynicism about any law that limits the money political rity are not counted in determining its representatives and to the problem candidates can spend to win office. The compliance. of corruption, or at least its appear- most recent example of the Court’s po- The President and a majority of Con- ance in our political system. sition, as well as of the obstacles local gress have expressed support for bal- At best, the obsession with money and state officials attempting reform ancing the budget without counting distracts us from the people’s business. face in their courts, came last Novem- Social Security surpluses, and now At worst, it corrupts and degrades the ber, when the Supreme Court refused that goal is within our reach. We entire political process. Fundraisers to entertain an appeal from the City of should take this opportunity to ap- used to be arranged so they don’t con- Cincinnati involving an ordinance that prove this Constitutional amendment flict with the Senate schedule; now- limited the amount city council can- and send it to the States for ratifica- adays, the Senate schedule is regularly didates could spend trying to get elect- tion. This Constitutional amendment shifted to accommodate fundraisers. ed. That ordinance had been struck would provide the structure and en- All this is the result of the rising down by a lower federal court as un- forcement mechanism to allow us to costs of political campaigns. Iron- constitutional. So you see, Mr. Presi- achieve this bipartisan goal. ically, campaign expenditures have dent, no statutory legislation—at the risen dramatically, far exceeding infla- federal, state, or local level—is going By Mr. HOLLINGS (for himself, tion, since Congress attempted cam- to succeed at cleaning up our political Mr. SPECTER, Mr. MCCAIN, and paign finance reform in 1974. Even system because no such legislation will Mr. BRYAN): greater than the increases in aggregate pass constitutional muster. S.J. Res. 6. A joint resolution propos- campaign costs were those for average The framework for today’s campaign ing an amendment to the Constitution winning candidates—the most useful finance system was erected back in of the United States relating to con- measure of the real costs of running for 1974, when Congress responded to pub- tributions and expenditures intended office. The average cost for a winning lic outrage over the Watergate scan- to affect elections; to the Committee House candidate rose from $87,000 in dals and the disturbing money trails on the Judiciary. 1976 to over $640,000 in 1998. For a vic- from the 1972 Presidential election by Mr. HOLLINGS. Mr. President, I rise torious Senate candidate, the cost of passing, on a bipartisan basis, a com- today to address a problem with which victory rose from $609,000 to $4.4 mil- prehensive campaign finance law. I was we are all too familiar: the ever-in- lion last year. here in 1974, and I was proud to support creasing cost of political campaigns. I remember Senator Richard Russell the Federal Election Campaign Act. Sadly, this cost can be counted not used to say, ‘‘They give you a six year The centerpiece of this reform was a only in millions of dollars but also in term in this U.S. Senate: two years to limitation on campaign expenditures. lost credibility. Each election year, our be a statesman, the next two years to Congress recognized that spending lim- political system and we as representa- be a politician, and the last two years its were the only rational alternative tives lose the invaluable and irreplace- to be a demagogue.’’ Regrettably, we to a system that essentially awards of- able trust of the American people. are no longer afforded even 2 years as fice to the highest bidder. The enormous amount of money re- statesmen. We proceed straight to dem- Unfortunately, in 1976 the Supreme quired to wage a political campaign agoguery after an election because of Court overturned these spending limits today has given rise to the pervasive the imperatives of raising money. in its infamous Buckley versus Valeo belief that our elections—indeed, even The public demands the system be decision. The Court mistakenly equat- we ourselves—are up for sale to the cleaned up. But how? For years, Sen- ed a candidate’s right to spend unlim- highest bidder. Though this is not the ator SPECTER and I have introduced a ited sums of money with his right to reality, the fact that it is the percep- constitutional amendment allowing free speech. In the face of spirited dis- tion is almost as damning. Congress to set reasonable campaign sents, the Court drew a tortuous dis- It is time to strike a blow against the expenditure limits. Today Senator tinction between campaign contribu- anything-goes fundraising and spend- SPECTER and I will reintroduce our tions and campaign expenditures. The ing encouraged by both political par- amendment to empower Congress and Court concluded that limiting an indi- ties. The need to limit campaign ex- the States to limit campaign spending vidual’s campaign contributions was a penditures is more urgent than ever: as they see fit. I believe a constitu- justifiable abridgment of the First the total cost of Congressional cam- tional amendment is the only way to Amendment, on the grounds that ‘‘the paigns skyrocketed from $446 million fix the system; yet since 1976, Congress governmental interest in preventing in 1990 to over $620 million in 1996. This has failed to adopt one. It has opted in- corruption and the appearance of cor- represents a 71-percent increase in just stead for a series of half-hearted, piece- ruption outweighs considerations of six years. Although fundraising slowed meal solutions, with predictable re- free speech.’’ in the election cycle just ended, can- sults. Yet the Court also concluded, in a di- didates for general election in 1998 still For nearly a quarter of a century, chotomous and confusing decision, that spent over $10 million more than their Congress has tired to tackle runaway the state’s interest in preventing cor- counterparts in 1996. campaign spending through statutory ruption and its appearance did not jus- Make no mistake: this lull is a tem- means. Again and again, Congress has tify limiting a candidate’s total ex- porary one. Experts attribute the failed. Let us resolve not to repeat the penditures. This, the Court ruled, con- slowed spending last year to the unusu- mistakes of past campaign finance re- stituted an unacceptable infringement ally large number of uncompetitive form efforts, which have bogged down on candidates’ speech. elections. I know this is true because in partisanship as Democrats and Re- I have never been able to fathom why in my state, which was the setting for publicans each have tried to gore the that same test—the governmental in- highly competitive elections for my other’s sacred cows. terest in preventing corruption and the Senate seat as well as the governorship The most recent statutory attempt appearance of corruption—does not jus- and other state offices, candidates to reform our tangled campaign system tify limits on campaign spending. The spent record amounts and made 1998 was the McCain-Feingold campaign fi- Court committed a grave error by the most expensive election year in nance reform bill. Although I sup- striking down spending limits as a South Carolina history. In fact, al- ported this legislation and will do so threat to free speech. The fact is, im- though the total cost of all Congres- again this year, I have grave doubts posing spending limits in federal cam- sional elections increased only slightly about its ability to effectively reform paigns would help restore the free January 19, 1999 CONGRESSIONAL RECORD — SENATE S713 speech that has been eroded by the limiting candidate expenditures is a 1970s, and we haven’t advanced the ball Buckley decision. violation of the First Amendment. Yet a single yard. It has been a quarter of As Professor Gerald G. Ashdown the Court rules in 1976 that there exist a century, and no legislative solution wrote in the New England Law Review, compelling interests—in this case, the has done the job. amending the Constitution to allow need to prevent the appearance and re- Excluding the unusual case of the Congress to regulate campaign expend- ality of corruption—to justify the state Twenty-seventh Amendment, which re- itures is ‘‘the most theoretically at- in circumscribing protected speech. All quired over 200 years to be ratified, the tractive of the approaches to reform this amendment does is apply the last five constitutional amendments since, from a broad free speech perspec- Court’s rationale to candidates’ speech. took an average of only 17 months to tive, the decision in Buckley is mis- Buckley’s nullification of spending be adopted. There is no reason why we guided and has worsened the campaign limits has helped give rise to Ameri- cannot pass this joint resolution, sub- finance atmosphere.’’ Adds Professor can’s belief that political offices are up mit it to the States for a vote, and rat- Ashdown: ‘‘If Congress could constitu- for sale to the highest bidder and has ify the amendment in time for it to tionally limit the campaign expendi- curtailed public discourse. By render- govern the 2000 elections. Indeed, this tures of individuals, candidates, and ing spending limits impossible it has approach could prove more expeditious committees, along with contributions, fueled the escalating costs of cam- than the alternative statutory ap- most of the troubles . . . would be paigns and forced politicians to focus proach. This joint resolution, once eliminated.’’ more and more on fundraising and less passed by the Congress, will go directly Let us be done with the hollow on important public issues. Our urgent to the States for ratification. Once charge that spending limits are some- task is to right the injustice of Buck- ratified, it will become the law of the how an attack on freedom of speech. As ley versus Valeo by empowering Con- land and will not be subject to veto or Justice Byron White pointed out in his gress to limit campaign spending. Supreme Court challenge. dissent from the majority’s Buckley My proposed constitutional amend- Furthermore, I anticipate and reject opinion, both contribution limits and ment would accomplish this. It does the argument that if we were to pass spending limits are neutral as to the not proscribe specific cures for what and ratify this amendment, Democrats content of speech and are not moti- ails our campaign finance system. In- and Republicans would be unable to vated by fear of the consequences of po- stead, it would provide Congress the hammer out a mutually acceptable for- litical speech in general. authority to reform the system by lim- mula of campaign expenditure limits. The Buckley decision created a dou- iting candidate spending. A Democratic Congress and Republican ble bind. It upheld restrictions on cam- To a distressing degree today, elec- President did exactly that in 1974, and paign contributions but struck down tions are determined not in the politi- we can certainly do it again. restrictions on how much candidates cal marketplace but in the financial Mr. President, this amendment will with deep pockets can spend. The Court marketplace. Our elections are sup- address the campaign finance mess di- ignored the practical reality that if my posed to be contests of ideas, but too rectly, decisively, and conclusively. opponent has only $50,000 to spend in a often they degenerate into megadollar The Supreme Court has chosen to ig- race and I have $1 million, then I can derbies, paper chases through the board nore the overwhelmingly detrimental effectively deprive him of speech. By rooms of corporations and special in- effects of money in today’s campaigns. failing to respond to my advertising, terests. In the Buckley decision, it elucidated a my cash-poor opponent will appear un- Mr. President, campaign spending vague and inconsistent definition of willing to speak up in his own defense. must be brought under control. The free speech. In its place, I urge passage Justice Thurgood Marshall zeroed in constitutional amendment I have pro- of this amendment. Let us ensure equal on this disparity in his dissent to posed would permit Congress to impose freedom of expression for all who seek Buckley. By striking down the limit on fair, responsible, workable limits on Federal office. what a candidate can spend, Justice Federal campaign expenditures. Marshall said, ‘‘It would appear to fol- Such a reform would have four im- By Mr. HATCH (for himself, Mr. low that the candidate with a substan- portant effects. It would end the mind- THURMOND, Mr. CRAIG, and Mr. tial personal fortune at his disposal is less pursuits of enormous campaign ASHCROFT): off to a significant head start.’’ war chests. Also, it would free can- S. J. Res. 7. A joint resolution pro- Indeed, Justice Marshall went fur- didates from their current obsession posing an amendment to the Constitu- ther. He argued that by upholding the with fundraising and allow them to tion of the United States to require a limitations on contributions but strik- focus more on issues and ideas; once balanced budget; to the Committee on ing down limits on overall spending, elected to office, we wouldn’t have to the Judiciary. the Court put an additional premium spend 20 percent of our time raising THE CONSTITUTIONAL BALANCED BUDGET ACT OF on a candidate’s personal wealth. Jus- money to keep our seats. Third, it 1999 tice Marshall was dead right. The would curb the influence of special in- Mr. HATCH. Mr. President, I am Buckley decision has been a boon to terests. And finally, it would create a today, once again, introducing a con- wealthy candidates, who can flood the more level playing field for all can- stitutional amendment to balance the airwaves and drown out their oppo- didates. budget. In so doing, I continue the ef- nents’ voices. Before concluding, Mr. President, I fort that I and many of my colleagues Make no mistake: political speech is would like to elaborate on the advan- have long pursued to provide a perma- not free. A political candidate’s ability tages of a constitutional amendment nent and strong mandate for a fiscally to disseminate his ideas and speak to such as I propose over statutory at- responsible path for our Nation. the voters depends entirely on his fi- tempts to reform the campaign system. It is a political reality, of course, nances. Thus, candidates who are per- Recent history amply demonstrates that Congress’ success in decreasing sonally wealthy or possess large cam- the practicality and viability of this our deficit levels and achieving a bal- paign coffers have a tremendous advan- constitutional route. It is not coinci- anced budget in the 105th Congress to a tage over poorer candidates—they al- dence that the six most-recent amend- certain extent mitigated the urgency ways will enjoy more speech. The ments to the Constitution have dealt of passing this Constitutional Amend- amendment Senator SPECTER and I pro- with Federal election issues. These are ment. pose today will help level the playing profound issues which go to the heart In my view, however, this is the ideal field between rich and poor candidates of our democracy; it is entirely appro- time to move forward on a constitu- and ensure that all enjoy equal speech. priate that they be addressed through a tional amendment. The fact that we Believe me, Mr. President, I am not constitutional amendment. have reached a balanced budget has enunciating any radical view today. And let’s not be distracted by the ar- shown that it can be done. Signifi- The Court itself equated money with gument that amending the constitu- cantly, it has refuted the arguments speech in its Buckley decision. Of tion will take too long. Take too long? and scare tactics of opponents that a course, the Court—and critics of this We have been dithering on this cam- balanced budget would mean the end of amendment—adheres to the belief that paign finance issue since the early Social Security and Medicare. Rather, S714 CONGRESSIONAL RECORD — SENATE January 19, 1999 we now have a record to demonstrate second fiscal year beginning after its ratifi- worldwide compliance with core labor stand- the strong benefits of a balanced budg- cation, whichever is later.’’. ards. et to our economy in general and to f Mr. MOYNIHAN. Mr. President, I rise to introduce a resolution that notes each segment of our society in particu- SENATE CONCURRENT RESOLU- with approval the International Labor lar. TION 1—EXPRESSING CONGRES- I am as proud as any Member of this Organization’s new Declaration on SIONAL SUPPORT FOR THE body of our recent success in restrain- Fundamental Principles and Rights at INTERNATIONAL LABOR ORGANI- ing the deficit. But that success does Work, which was agreed in June 1998 at ZATION’S DECLARATION ON FUN- not mean that this amendment is no the 86th International Labor Con- DAMENTAL PRINCIPLES AND longer necessary. Our history, unfortu- ference. This resolution simply urges RIGHTS AT WORK nately, demonstrates that the fiscal the prompt and effective implementa- discipline of recent years is the excep- Mr. MOYNIHAN submitted the fol- tion of this important Declaration and tion, not the rule. The political incen- lowing concurrent resolution; which its monitoring mechanism. tives in this town to spend now and pay was referred to the Committee on The impact of globalization on work- later remain. Thus, it is as true now as Health, Education, Labor, and Pen- ing conditions and, indeed, on workers’ it always been that only a structural sions. rights in general, has arisen as an im- change in our basic charter can ensure S. CON. RES. 1 portant, and somewhat difficult, issue long term fiscal responsibility and a Whereas the International Labor Organiza- in the debate over the direction of secure future for our children and tion (in this resolution referred to as the America’s trade policy. In 1997, I sug- grandchildren. This is a matter that re- ‘‘ILO’’) was created in 1919 by part XIII of gested to the Administration that they mains vital to the economic health of the Treaty of Versailles for the purpose of might look to the International Labor the State of Utah and the Nation. improving labor conditions worldwide; Organization for assistance in address- Mr. President, I ask unanimous con- Whereas for 79 years, the ILO has provided ing this matter. After all, the ILO was an avenue for nations to improve labor sent that the text of this joint resolu- standards in a manner that does not erode established in 1919 for the express pur- tion be printed in the RECORD. their competitive advantage in world com- pose of providing governments that There being no objection, the joint merce; wanted to do something to improve resolution was ordered to be printed in Whereas the United States has long recog- labor standards with a means of so the RECORD, as follows: nized the linkage between the ILO and world doing—international conventions—that S.J. Res. 7 trade, having joined the ILO in 1934, the would not compromise their competi- Be it enacted by the Senate and House of Rep- same year that President Roosevelt and Sec- tive advantages. I worked with the Ad- resentatives of the United States of America in retary of State Cordell Hull launched the Re- ministration to incorporate into the ciprocal Trade Agreements program; Congress assembled, (two-thirds of each House President’s 1997 fast track proposal concurring therein), That the following article Whereas the increasing integration of the global economy has drawn renewed attention language recognizing the important is proposed as an amendment to the Con- role of the ILO, and in September 1997, stitution, which shall be valid to all intents to the question of how best to improve labor and purposes as part of the Constitution standards in an economic environment char- the distinguished Chairman of the Fi- when ratified by the legislatures of three- acterized by intensified international com- nance Committee agreed to include the fourths of the several States within seven petition; ILO provisions in his own fast track years after the date of its submission to the Whereas in 1994, at the conclusion of the bill. In July 1998, the Finance Commit- States for ratification: first Ministerial Meeting of the World Trade tee updated the bill to reflect its ap- Organization in Singapore, Trade Ministers ‘‘ARTICLE— issued a declaration which reaffirmed the proval of, and hopes for, the new Dec- ‘‘SECTION 1. Total outlays for any fiscal commitment of World Trade Organization laration on Fundamental Principles year shall not exceed total receipts for that members to observe internationally recog- and Rights at Work and its monitoring fiscal year, unless three-fifths of the whole nized core labor standards and identified the mechanism. number of each House of Congress shall pro- ILO as the ‘‘competent body to set and deal In essence, the ILO has bundled to- vide by law for a specific excess of outlays with’’ these standards; gether, in a single declaration, four over receipts by a rollcall vote. Whereas the 174 members of the ILO have ‘‘SECTION 2. The limit on the debt of the sets of fundamental rights—the core recognized the following 7 conventions as United States held by the public shall not be labor standards embodying the broad protecting core labor standards: Convention increased, unless three-fifths of the whole principles that are essential to mem- No. 29 on Forced Labor (1930), Convention number of each House shall provide by law No. 87 on Freedom of Association and Pro- bership in the ILO. Having declared for such an increase by a rollcall vote. tection of the Right to Organize (1948), Con- that those rights are fundamental, the ‘‘SECTION 3. Prior to each fiscal year, the vention No. 98 on the Right to Organize and document then provides for a monitor- President shall transmit to the Congress a ing system—a ‘‘follow-up’’ mechanism, proposed budget for the United States Gov- Collective Bargaining (1949), Convention No. ernment for that fiscal year, in which total 100 on Equal Remuneration (1950), Conven- to use the ILO term—to determine how outlays do not exceed total receipts. tion No. 105 on the Abolition of Forced Labor countries are complying with these ele- ‘‘SECTION 4. No bill to increase revenue (1957), Convention No. 111 on Discrimination mental worker rights. shall become law unless approved by a ma- in Employment and Occupation (1958), and The four sets of fundamental rights jority of the whole number of each House by Convention No. 138 on Minimum Age (1973); are: freedom of association and the ef- a rollcall vote. Whereas in June 1998, at the conclusion of the 86th International Labor Conference, the fective recognition of the right to col- ‘‘SECTION 5. The Congress may waive the lective bargaining; the elimination of provisions of this article for any fiscal year ILO adopted the ‘‘Declaration on Fundamen- in which a declaration of war is in effect. tal Principles and Rights at Work’’, which all forms of forced or compulsory labor; The provisions of this article may be waived declares the core labor standards embodied the effective abolition of child labor; for any fiscal year in which the United in the 7 conventions to be essential to mem- and the elimination of discrimination States is engaged in military conflict which bership in the ILO; and in respect of employment and occupa- causes an imminent and serious military Whereas an essential element of the 1998 tion. threat to national security and is so declared Declaration is its ‘‘Follow Up Mechanism’’, These rights flow directly from three by a joint resolution, adopted by a majority which provides for the monitoring of ILO sources. First, from the ILO Constitu- of the whole number of each House, which member countries’ compliance with the core labor standards: Now, therefore, be it tion itself, which was drafted by a com- becomes law. mission headed by Samuel Gompers of ‘‘SECTION 6. The Congress shall enforce and Resolved by the Senate (the House of Rep- implement this article by appropriate legis- resentatives concurring), That it is the sense the American Federation of Labor and lation, which may rely on estimates of out- of the Congress that— became, in 1919, part XIII of the Treaty lays and receipts. (1) the International Labor Organization’s of Versailles. Second, from the im- ‘‘SECTION 7. Total receipts shall include all Declaration on Fundamental Principles and mensely important Declaration of receipts of the United States Government ex- Rights at Work is an important achievement Philadelphia, which reaffirmed, at the cept those derived from borrowing. Total that may help advance core labor standards height of World War II, the fundamen- in a competitive global economy; and outlays shall include all outlays of the tal principles of the ILO, including United States Government except for those (2) the President should use all means at for repayment of debt principal. the President’s disposal to ensure that the freedom of expression and association ‘‘SECTION 8. This article shall take effect Declaration and its Follow Up Mechanism and the importance of equal oppor- beginning with fiscal year 2004 or with the evolve into an effective means of monitoring tunity and economic security. Adopted January 19, 1999 CONGRESSIONAL RECORD — SENATE S715 in 1944, the Declaration of Philadelphia There being no objection, the mate- (d) the elimination of discrimination in re- was formally annexed to the ILO Con- rial was ordered to be printed in the spect of employment and occupation. 3. Recognizes the obligation on the Organi- stitution two years later. And, not RECORD, as follows: least, these four groups of core labor zation to assist its Members, in response to [From the International Labour Conference, their established and expressed needs, in standards flow from the seven ILO con- 86th Session, Geneva, June 1998] order to attain these objectives by making ventions that are recognized as Core ILO DECLARATION ON FUNDAMENTAL full use of its constitutional, operational and Human Rights Conventions. PRINCIPLES AND RIGHTS AT WORK budgetary resources, including by the mobi- These seven conventions are not the Whereas the ILO was founded in the con- lization of external resources and support, as highly technical agreements that make viction that social justice is essential to uni- well as by encouraging other international up the vast majority of the ILO’s 181 versal and lasting peace; organizations with which the ILO has estab- conventions. Rather, they directly ad- Whereas economic growth is essential but lished relations, pursuant to article 12 of its dress the rights of working people. not sufficient to ensure equity, social Constitution, to support these efforts: progress and the eradication of poverty, con- (a) by offering technical cooperation and They are Convention No. 29, the Forced firming the need for the ILO to promote Labor Convention of 1930; Convention advisory services to promote the ratification strong social policies, justice and democratic and implementation of the fundamental Con- No. 87, the Freedom of Association and institutions; ventions; Protection of the Right to Organize Whereas the ILO should, now more than (b) by assisting those Members not yet in Convention of 1948; Convention No. 98, ever, draw upon all its standard-setting, a position to ratify some or all of these Con- the Right to Organize and Collective technical cooperation and research resources ventions in their efforts to respect, to pro- Bargaining Convention of 1949; Conven- in all its areas of competence, in particular mote and to realize the principles concerning tion No. 100, the Equal Remuneration employment, vocational training and work- fundamental rights which are the subject of ing conditions, to ensure that, in the context those Conventions; and Convention of 1951; Convention No. 105, of a global strategy for economic and social the Abolition of Forced Labor Conven- (c) by helping the Members in their efforts development, economic and social policies to create a climate for economic and social tion of 1957; Convention No. 111 on Dis- are mutually reinforcing components in development. crimination in Employment and Occu- order to create broad-based sustainable de- 4. Decides that, to give full effect to this pation, which was done in 1958; and velopment; Declaration, a promotional follow-up, which Convention No. 138, the Minimum Age Whereas the ILO should give special atten- is meaningful and effective, shall be imple- Convention of 1973. tion to the problems of persons with special mented in accordance with the measures They are extraordinary conventions. social needs, particularly the unemployed specified in the annex hereto, which shall be and migrant workers, and mobilize and en- considered as an integral part of this Dec- The Social Summit in Copenhagen in courage international, regional and national 1995 identified six of these ILO conven- laration. efforts aimed at resolving their problem, and 5. Stresses that labour standards should tions as essential to ensuring human promote effective policies aimed at job cre- not be used for protectionist trade purposes, rights in the workplace: Nos. 29, 87, 98, ation; and that nothing in this Declaration and its 100, 105, and 111. The United Nations Whereas, in seeking to maintain the link follow-up shall be invoked or otherwise used High Commissioner for Human Rights between social progress and economic for such purposes; in addition, the compara- has classified them as ‘‘International growth, the guarantee of fundamental prin- tive advantage of any country should in no Human Rights Conventions.’’ The Gov- ciples and rights at work is of particular sig- way be called into question by this Declara- nificance in that it enables the persons con- tion and its follow-up. erning Body of the ILO subsequently cerned to claim freely and on the basis of ANNEX—FOLLOW-UP TO THE DECLARATION added to the list of core conventions equality of opportunity their fair share of Convention No. 138, the minimum age the wealth which they have helped to gen- I. OVERALL PURPOSE convention, in recognition of the im- erate, and to achieve fully their human po- 1. The aim of the follow-up described below portance of matters relating to child tential; is to encourage the efforts made by the Mem- labor. These conventions embody the Whereas the ILO is the constitutionally bers of the Organization to promote the fun- broad principles that are basic to mem- mandated international organization and the damental principles and rights enshrined in the Constitution of the ILO and the Declara- bership in the ILO. competent body to set and deal with inter- national labour standards, and enjoys uni- tion of Philadelphia and reaffirmed in this The Director-General of the World versal support and acknowledgement in pro- Declaration. Trade Organization, Renato Ruggiero, moting fundamental rights at work as the 2. In line with this objective, which is of a was solidly behind the ILO’s efforts, as expression of its constitutional principles; strictly promotional nature, this follow-up we discussed at length in Geneva dur- Whereas it is urgent, in a situation of will allow the identification of areas in ing a visit in January 1998. In the end, growing economic interdependence, to reaf- which the assistance of the Organization the tenacity of Secretary of Labor firm the immutable nature of the fundamen- through its technical cooperation activities Alexis Herman and her able Deputy tal principles and rights embodied in the may prove useful to its Members to help Under Secretary for International Constitution of the Organization and to pro- them implement these fundamental prin- mote their universal application; ciples and rights. It is not a substitute for Labor Affairs Andrew Samet, Abraham The International Labour Conference, the established supervisory mechanisms, nor Katz, President of the United States 1. Recalls: (a) that in freely joining the shall it impede their functioning; con- Council for International Business, and ILO, all Members have endorsed the prin- sequently, specific situations within the pur- John Sweeney, President of the AFL- ciples and rights set out in its Constitution view of those mechanisms shall not be exam- CIO, paid off: the Declaration was ap- and in the Declaration of Philadelphia, and ined or re-examined within the framework of proved in June 1998 by an overwhelm- have undertaken to work towards attaining this follow-up. ing margin. the overall objectives of the Organization to 3. The two aspects of this follow-up, de- The Declaration can play a useful the best of their resources and fully in line scribed below, are based on existing proce- with their specific circumstances; role in advancing core labor standards dures: the annual follow-up concerning non- (b) that these principles and rights have ratified fundamental Conventions will entail if it is carried out with energy and de- been expressed and developed in the form of merely some adaption of the present modali- termination. The key will be its follow- specific rights and obligations in Conven- ties of application of article 19, paragraph up mechanism, and the extent to which tions recognized as fundamental both inside 5(e) of the Constitution; and the global re- that tool evolves into an effective and outside the Organization. port will serve to obtain the best results means of monitoring compliance with 2. Declares that all Members, even if they from the procedures carried out pursuant to these fundamental worker rights and have not ratified the Conventions in ques- the Constitution. tion, have an obligation arising from the II. ANNUAL FOLLOW-UP CONCERNING NON- securing their enforcement. This may very fact of membership in the Organization, RATIFIED FUNDAMENTAL CONVENTIONS take a period of years, but much good to respect, to promote and to realize, in good could come of it. The resolution I have faith and in accordance with the Constitu- A. Purpose and scope introduced today recognizes both the tion, the principles concerning the fun- 1. The purpose is to provide an opportunity significance of the Declaration and the damental rights which are the subject of to review each year, by means of simplified useful role it could play in addressing those Conventions, namely: procedures to replace the four-year review workers’ concerns about the global (a) freedom of association and the effective introduced by the Governing Body in 1995, the efforts made in accordance with the Dec- economy. recognition of the right to collective bar- gaining; laration by Members which have not yet Mr. President, I ask unanimous con- (b) the elimination of all forms of forced or ratified all the fundamental Conventions. sent that the full text of the Declara- compulsory labour; 2. The follow-up will cover each year the tion and its follow-up mechanism be (c) the effective abolition of child labour; four areas of fundamental principles and printed in the RECORD. and rights specified in the Declaration. S716 CONGRESSIONAL RECORD — SENATE January 19, 1999 B. Modalities which was held at Geneva and declared Whereas recent advances in the treatment 1. The follow-up will be based on reports closed the 18 June 1998. of HIV illustrate the promise research holds requested from Members under article 19, IN FAITH WHEREOF we have appended for even more effective, accessible, and af- paragraph 5(e) of the Constitution. The re- our signatures this nineteenth day of June fordable treatments for persons with HIV; port forms will be drawn up so as to obtain 1998. Whereas infants and children are the hope information from governments which have THE PRESIDENT OF THE CONFERENCE, of our future, yet they continue to be the not ratified one or more of the fundamental THE DIRECTOR-GENERAL OF THE most vulnerable and under served members Conventions, on any changes which may INTERNATIONAL LABOUR OFFICE. of our society; have taken place in their law and practice, f Whereas approximately one out of every taking due account of article 23 of the Con- six American men will develop prostate can- stitution and established practice. SENATE RESOLUTION 19—EX- cer and over 49,200 men will die from pros- 2. These reports, as compiled by the Office, PRESSING THE SENSE OF THE tate cancer each year; will be reviewed by the Governing Body. SENATE THAT THE FEDERAL IN- Whereas diabetes, both insulin and non-in- 3. With a view to presenting an introduc- VESTMENT IN BIOMEDICAL RE- sulin forms, afflict 15.7 million Americans and places them at risk for acute and chron- tion to the reports thus compiled, drawing SEARCH SHOULD BE INCREASED attention to any aspects which might call ic complications, including blindness, kidney BY $2,000,000,000 IN FISCAL YEAR failure, atherosclerosis and nerve degenera- for a more in-depth discussion, the Office 2000 may call upon a group of experts appointed tion; Whereas the emerging understanding of for this purpose by the Governing Body. Mr. SPECTER (for himself and Mr. the principles of biometrics have been ap- 4. Adjustments to the Governing Body’s ex- HARKIN) submitted the following reso- isting procedures should be examined to plied to the development of hard tissue such lution; which was referred jointly to as bone and teeth as well as soft tissue, and allow Members which are not represented on the Committee on the Budget and to the Governing Body to provide, in the most this field of study holds great promise for appropriate way, clarifications which might the Committee on Governmental Af- the design of new classes of biomaterials, prove necessary or useful during Governing fairs: pharmaceuticals, diagnostic and analytical reagents; Body discussions to supplement the informa- S. RES. 19 Whereas research sponsored by the Na- tion contained in their reports. Whereas past investments in biomedical tional Institutes of Health will map and se- III. GLOBAL REPORT research have resulted in better health, an quence the entire human gnome by 2005, A. Purpose and scope improved quality of life for all Americans leading to a new era of molecular medicine 1. The purpose of this report is to provide and a reduction in national health care ex- that will provide unprecedented opportuni- a dynamic global picture relating to each penditures; ties for the prevention, diagnoses, treat- category of fundamental principles and Whereas the Nation’s commitment to bio- ment, and cure of diseases that currently rights noted during the preceding four-year medical research has expanded the base of plague society; period, and to serve as a basis for assessing scientific knowledge about health and dis- Whereas the fundamental way science is the effectiveness of the assistance provided ease and revolutionized the practice of medi- conducted is changing at a revolutionary by the Organization, and for determining pri- cine; pace, demanding a far greater investment in orities for the following period, in the form Whereas the Federal Government rep- emerging new technologies, research train- of action plans for technical cooperation de- resents the single largest contribution to ing programs, and in developing new skills signed in particular to mobilize the internal biomedical research conducted in the United among scientific investigators; and and external resources necessary to carry States; Whereas most Americans show overwhelm- them out. Whereas biomedical research continues to ing support for an increased Federal invest- 2. The report will cover, each year, one of play a vital role in the growth of this Na- ment in biomedical research: Now, therefore, the four categories of fundamental principles tion’s biotechnology, medical device, and be it and rights in turn. pharmaceutical industries; Resolved, Whereas the origin of many of the new B. Modalities SECTION 1. SHORT TITLE. drugs and medical devices currently in use is This resolution may be cited as the ‘Bio- 1. The report will be drawn up under the re- based in biomedical research supported by medical Revitalization Resolution of 1998’. sponsibility of the Director-General on the the National Institutes of Health; SEC. 2. SENSE OF THE SENATE. basis of official information, or information Whereas women have traditionally been It is the sense of the Senate that funding gathered and assessed in accordance with es- under represented in medical research proto- for the National Institutes of Health should tablished procedures. In the case of States cols, yet are severely affected by diseases in- be increased by $2,000,000,000 in fiscal year which have not ratified the fundamental cluding breast cancer, which will kill over 2000 and that the budget resolution appro- Conventions, it will be based in particular on 43,900 women this year; ovarian cancer which priately reflect sufficient funds to achieve the findings of the aforementioned annual will claim another 14,500 lives; and this objective. follow-up. In the case of Members which have osteoporosis and cardiovascular disorders; ratified the Conventions concerned, the re- Whereas research sponsored by the Na- Mr. SPECTER. Mr. President, I have port will be based in particular on reports as tional Institutes of Health is responsible for sought recognition today for the pur- dealt with pursuant to article 22 of the Con- the identification of genetic mutations relat- pose of submitting a resolution calling stitution. ing to nearly 100 diseases, including Alz- for the Budget Committee to add $2 bil- 2. This report will be submitted to the Con- heimer’s disease, cystic fibrosis, Hunting- lion in the health account for the Na- ference for tripartite discussion as a report ton’s disease, osteoporosis, many forms of tional Institutes of Health in fiscal of the Director-General. The Conference may cancer, and immune deficiency disorders; deal with this report separately from reports year 2000. I am convinced that National Whereas many Americans still face serious Institutes of Health are the crown under article 12 of its Standing Orders, and and life-threatening health problems, both may discuss it during a sitting devoted en- acute and chronic; jewel of the Federal Government and tirely to this report, or in any other appro- Whereas neurodegenerative diseases of the they have made tremendous progress in priate way. It will then be for the Governing elderly, such as Alzheimer’s and Parkinson’s conducting research into the causes Body, at an early session, to draw conclu- disease threaten to destroy the lives of mil- and cures for disease. My vision for sions from this discussion concerning the lions of Americans, overwhelm the Nation’s America in the 21st Century is to find priorities and plans of action for technical health care system, and bankrupt the Medi- the cure for cancer, for Alzheimer’s, for cooperation to be implemented for the fol- care and Medicaid programs; lowing four-year period. Parkinson’s, for the severe mental ill- Whereas 4 million Americans are currently nesses, for diabetes, for osteoporosis, IV. IT IS UNDERSTOOD THAT infected with the hepatitis C virus, an insid- and for heart cardiovascular disease. 1. Proposals shall be made for amendments ious liver condition that can lead to inflam- to the Standing Orders of the Governing mation, cirrhosis, and cancer as well as liver All of this is within our reach if we Body and the Conference which are required failure; make the proper allocation of our re- to implement the preceding provisions. Whereas 250,000 Americans are now suffer- sources. 2. The Conference shall, in due course, re- ing from AIDS and hundreds of thousands As Chairman of the Appropriations view the operation of this follow-up in the more with HIV infection; subcommittee for Labor, Health and light of the experience acquired to assess Whereas cancer remains a comprehensive Human Services, Education and Relat- whether it has adequately fulfilled the over- threat to any tissue or organ of the body at ed Agencies, I am firmly committed to all purpose articulated in Part I. any age, and remains a top cause of morbid- prioritizing our resources in order to The foregoing is the ILO Declaration on ity and mortality; Fundamental Principles and Rights at Work Whereas the extent of psychiatric and neu- provide maximum funding for bio- and its Follow-up duly adopted by the Gen- rological diseases poses considerable chal- medical research. Funding for the Na- eral Conference of the International Labour lenges in understanding the workings of the tional Institutes of Health has been in- Organization during its Eighty-sixth Session brain and nervous system; creased steadily during my tenure in January 19, 1999 CONGRESSIONAL RECORD — SENATE S717 the Senate, regardless of who was undetectable levels. Death rates from Resolved, That the Senate— chairing the subcommittee. Although cancer have begun a steady decline. (1) congratulates the University of Ten- the budgets were always tight and fre- Human genome research has yielded nessee Volunteers football team on winning quently had cuts called for by the ad- dramatic developments in uncovering the 1998 National Collegiate Athletic Asso- ciation Division I–A football championship; ministration, when the chairman was genes associated with a host of dis- and Senator Weicker, when the chairman eases, such as breast and prostate can- (2) commends the University of Tennessee was Lawton Chiles, when the chairman cer, Alzheimer’s disease, cystic fibro- Volunteers football team for its pursuit of was TOM HARKIN, or more recently sis, and schizophrenia. athletic excellence and its outstanding ac- under my chairmanship, we have in- I personally have been the bene- complishment in collegiate football in win- creased the funding tremendously. And ficiary of the tremendous advances of ning the championship. the National Institutes of Health has the National Institutes of Health. Two f responded with extraordinary advances decades ago, there was no such thing as SENATE RESOLUTION 22—NA- in research. Now the work has to be an MRI. That device detected a prob- TIONAL PEACE OFFICERS MEMO- pushed forward to see exactly what can lem for me. And other advances led to RIAL DAY RESOLUTION be accomplished in the next century. good results for me. I know millions of On May 21, 1997, the Senate passed a people have benefited from the re- Mr. CAMPBELL (for himself, Mr. Sense of the Senate resolution submit- search and the investment which we ABRAHAM, Mr. AKAKA, Mr. ALLARD, Mr. ted by our distinguished colleague, have made in the National Institutes of BIDEN, Mr. BINGAMAN, Mr. BROWNBACK, Senator MACK, which stated that fund- Health. But that takes money, and Mr. BRYAN, Mr. BURNS, Mr. CLELAND, ing for the National Institutes of that is why this resolution is being of- Mr. COVERDELL, Mr. CRAIG, Mr. Health should be doubled over five fered—to call upon the Budget Com- DASCHLE, Mr. DEWINE, Mr. DODD, Mr. years. Regrettably, even though that mittee to add in $2 billion so we can DOMENICI, Mr. DORGAN, Mr. DURBIN, Mr. resolution was passed by an over- carry forward the important work of ENZI, Mrs. FEINSTEIN, Mr. FITZGERALD, whelming vote of 98 to nothing, when the National Institutes of Health. Mr. FRIST, Mr. GORTON, Mr. GRAMM, the budget resolution was returned, the f Mr. GRAMS, Mr. HAGEL, Mr. HATCH, Mr. appropriate health account had a re- HELMS, Mr. HOLLINGS, Mrs. HUTCHISON, duction of $100 million. That led to the SENATE RESOLUTION 20—TO RE- Mr. INHOFE, Mr. INOUYE, Mr. JEFFORDS, introduction of an amendment to the NAME THE COMMITTEE ON Mr. KENNEDY, Mr. KERREY, Mr. LEAHY, budget resolution by Senator HARKIN LABOR AND HUMAN RESOURCES Mr. LIEBERMAN, Mr. LOTT, Mr. LUGAR, and myself, Senator HARKIN being my THE COMMITTEE ON HEALTH, Mr. MACK, Mr. MCCAIN, Ms. MIKULSKI, distinguished colleague and ranking EDUCATION, LABOR, AND PEN- Mr. MOYNIHAN, Mr. MURKOWSKI, Mrs. member of the subcommittee which I SIONS MURRAY, Mr. REID, Mr. ROBB, Mr. chair. We sought to add in $1.1 billion Mr. JEFFORDS (for himself and Mr. ROCKEFELLER, Mr. ROTH, Mr. SAR- to carry out the expressed sense of the KENNEDY) submitted the following res- BANES, Mr. SCHUMER, Mr. SESSIONS, Mr. Senate. Our amendment, however, was olution; which was considered and SHELBY, Mr. SMITH of New Hampshire, defeated 63–37. While the Senate had agreed to: Mr. SPECTER, Mr. STEVENS, Mr. THUR- MOND ORRICELLI ARNER expressed its druthers on a resolution, S. RES. 20 , Mr. T , Mr. W , Mr. WELLSTONE, and Mr. CRAPO) sub- when it came to the dollars they sim- Resolved, That the Committee on Labor ply were not there. and Human Resources is hereby redesignated mitted the following resolution; which During debate on the fiscal year 1999 as the Committee on Health, Education, was referred to the Committee on the Budget Resolution, Senator HARKIN Labor, and Pensions. Judiciary: and I again introduced an amendment f S. RES. 22 which called for a funding increase for Whereas the well-being of all citizens of the National Institutes of Health of $2 SENATE RESOLUTION 21—CON- this country is preserved and enhanced as a billion and provided sufficient re- GRATULATING THE UNIVERSITY direct result of the vigilance and dedication sources in the budget to accomplish OF TENNESSEE VOLUNTEERS of law enforcement personnel; this. While we gained more support on FOOTBALL TEAM ON WINNING Whereas more than 700,000 men and this vote than in the previous year, un- THE 1998 NATIONAL COLLEGIATE women, at great risk to their personal safe- fortunately our amendment was again ATHLETIC ASSOCIATION DIVI- ty, presently serve their fellow citizens in their capacity as guardians of peace; defeated, this time by a vote of 57–41. SION 1-A FOOTBALL CHAMPION- SHIP Whereas peace officers are the front line in In order to provide the necessary re- preserving our childrens’ right to receive an sources for biomedical research, Sen- Mr. FRIST (for himself and Mr. education in a crime-free environment that ator HARKIN have worked closely to- THOMPSON) submitted the following is all too often threatened by the insidious gether to find these vital funds. In the resolution; which was considered and fear caused by violence in schools; past few years, Senator HARKIN and I agreed to: Whereas 158 peace officers lost their lives have consolidated and eliminated 135 in the performance of their duty in 1998, and S. RES. 21 programs to enable us to save $1.5 bil- a total of nearly 15,000 men and women have Whereas the University of Tennessee Vol- lion. It’s pretty hard to eliminate a now made that supreme sacrifice; unteers football team (referred to in this res- Whereas every year 1 in 9 officers is as- program in Washington, DC but we olution as the ‘‘Tennessee Volunteers’’) de- saulted, 1 in 25 officers is injured, and 1 in have been able to do that. We used the feated the Florida State University Semi- 4,400 officers is killed in the line of duty; and $1.5 billion to provide to the National noles on January 4, 1999, at the Fiesta Bowl Whereas, on May 15, 1999, more than 15,000 Institutes of Health, guaranteed stu- in Tempe, Arizona, to win the National Col- peace officers are expected to gather in our dent loans, and many other important legiate Athletic Association Division I–A Nation’s Capital to join with the families of programs. Last year, Senator HARKIN football championship; their recently fallen comrades to honor them and I again went to work with our sub- Whereas the Tennessee Volunteers com- and all others before them: Now, therefore, pleted the 1998 football season with a perfect committee and we were able, by mak- be it record of 13 wins and 0 losses; Resolved, That the Senate— ing economies and establishing prior- Whereas the Tennessee Volunteers de- (1) recognizes May 15, 1999, Peace Officers ities, to add an additional $2 billion to feated the Mississippi State University Bull- Memorial Day, in honor of Federal, State, the NIH account, the largest increase dogs to claim the 1998 Southeastern Con- and local officers killed or disabled in the in history. We, however, still have a ference football championship; line of duty; and long way to go if we are to meet our Whereas the Tennessee Volunteers’ Coach (2) calls upon the people of the United goal of doubling the funding over five Phillip Fulmer, his staff, and his players dis- States to observe this day with the appro- years. played outstanding dedication, teamwork, priate ceremonies and respect. Our investment has resulted in tre- selflessness, and sportsmanship throughout Mr. CAMPBELL. Mr. President, the course of the season to achieve collegiate mendous advances in medical research. football’s highest honor; and today I am joined with my colleagues A new generation of AIDS drugs are re- Whereas the Tennessee Volunteers have in submitting this resolution to keep ducing the presence of the AIDS virus brought pride and honor to Tennessee: Now, alive in the memory of all Americans, in HIV affected persons to nearly therefore, be it the sacrifice and commitment of those S718 CONGRESSIONAL RECORD — SENATE January 19, 1999 men and women who lost their lives ees International Union. The IBPO is the rial. Serving on the Board of Directors at the while serving as law enforcement offi- largest police union in the AFL–CIO. National Law Enforcement Officers Memo- cers. Specifically, this resolution On behalf of the over 50,000 members of the rial Fund and as a former Detroit police offi- IBPO, including IBPO Local 516, Fountain, would designate May 15, 1999, as Na- cer for twenty-five years, I truly appreciate Colorado I want to thank you for introduc- a day for all Americans to recognize and tional Peace Officers Memorial Day. ing a Joint Resolution to designate May 15, commemorate with surviving family mem- Currently, more than 700,000 men and 1999, as National Peace Officers Memorial bers, those who have lost their lives in the women who serve this nation as our Day. line of duty. guardians of law and order do so at a Each year, more than 10,000 police officers, Every day law enforcement officers put great risk. Every year, about 1 in 9 offi- survivors and supporters attend the activi- their lives on the line to serve and protect cers is assaulted, 1 in 25 officers is in- ties revolving around Peace Officers Memo- our communities. Over the past few years, jured, and 1 in 4,400 officers is killed in rial Day Washington, DC. Officers develop we have experienced a steady decrease in close bonds with their colleagues from across the line of duty. There are few commu- violent crime rates throughout our neighbor- the country. Survivors gain strength from hoods and cities. However, this does not nities in this country that have not others who have experienced and understand come at a small price. In 1998, 155 of our Na- been impacted by the senseless death of their grief. tion’s finest lost their lives protecting the a police officer. The entire membership of the IBPO looks citizens of this county. We need to honor and In 1998, over 158 federal, state and forward to working with you on this impor- remember these outstanding men and women local law enforcement officers have tant matter. every year. given their lives in the line of duty and Once again, thank you for your continued Thank you for your dedication in advanc- support of law enforcement community. ing the interests of the law enforcement nearly 15,000 men and women have Sincerely, made that supreme sacrifice. And, our community. I look forward to working with KENNETH T. LYONS, you in the 106th Congress. Please let me Capitol community as well as the na- National President. know if I can be of any assistance in the fu- tion were shocked and saddened last ture. year by the tragic and senseless shoot- FEDERAL LAW ENFORCEMENT Sincerely, ing of Capitol Police Officer Jacob OFFICERS ASSOCIATION, ROBERT T. SCULLY, Chestnut and Special Agent John Gib- East Northport, NY, January 8, 1999. Executive Director. son. Hon. BEN NIGHTHORSE CAMPBELL, U.S. Senator, f According to National Law Enforce- Washington, DC. ment Officers Memorial Fund Chair- DEAR SENATOR CAMPBELL: On behalf of the SENATE RESOLUTION 23—CON- man Craig W. Floyd, over 15,000 members of the Federal Law En- GRATULATING MICHAEL JORDAN Since crime began its steady downward forcement Officers Association (FLEOA), I ON THE ANNOUNCEMENT OF HIS slide in 1992, more than 1,100 federal, state wish to express our strong support for the RETIREMENT FROM THE CHI- and local law enforcement officers have lost resolution you intend to introduce to the CAGO BULLS AND THE NA- their lives in the performance of duty. That 106th Congress regarding National Peace Of- TIONAL BASKETBALL ASSOCIA- averages out to 158 police deaths each year, ficers Memorial Day. FLEOA is proud to TION or one officer killed somewhere in America stand with you on this legislation. roughly every 54 hours. FLEOA is a non-partisan professional asso- Mr. DURBIN (for himself and Mr. As a former deputy sheriff, I know ciation representing federal agents from the FITZGERALD) submitted the following agencies listed on the left masthead. We resolution: first-hand the risks which law enforce- have local chapters all across the United S. RES. 23 ment officers face every day on the States and several overseas. Each year, on front lines protecting our commu- May 15, all across America, federal agents Whereas Michael Jeffrey Jordan has an- nities. Last year for example, in Cor- stand with their law enforcement officer nounced his retirement from basketball after tez, Colorado, police officer Dale brethren and remember those from our ranks 13 seasons with the Chicago Bulls; Whereas Michael Jordan helped make the Claxton was fatally shot through the who gave their lives in the line of duty. FLEOA has been on the Executive Board of long, hard winters bearable for millions of windshield of his patrol car after stop- Chicagoans by leading the Chicago Bulls to 6 ping a stolen truck. Officer Claxton the National Law Enforcement Officers Me- morial, located in Washington, DC, since its National Basketball Association Champion- was tragically and prematurely taken inception. As inscribed on the Memorial ships during the past 8 years, earning 5 NBA away from his wife and four children. Wall, next to the names of the heros and her- Most Valuable Player awards, and winning 10 Today, two of the three suspects are oines, are these words: ‘‘It is not how these NBA scoring titles; still at large, even after an extensive officers died that made them heroes; it is Whereas Michael Jordan and his Olympic manhunt. how they lived.’’ Your resolution will make teammates thrilled basketball fans around On May 15, 1999, more than 15,000 sure their sacrifice, once again, will be ob- the world by winning gold medals at the 1984 and 1992 Olympic Games; peace officers are expected to gather in served all across our great nation. FLEOA is calling for all of our elected offi- Whereas Michael Jordan has demonstrated our Nation’s Capital to join with the cials to cosponsor your resolution. We look an unsurpassed level of professionalism dur- families of their fallen comrades, past forward to working on this and other issues ing his athletic career and has served as a and present, who by their faithful and with you and your staff. Thank you for all role model to millions of American children loyal devotion to their responsibilities your efforts for law enforcement. by demonstrating the qualities that mark a have rendered a dedicated service to RICHARD J. GALLO. true champion: hard work, grace, determina- their communities and, in doing so, tion, and commitment to excellence; have established for themselves an en- NATIONAL ASSOCIATION Whereas Michael Jordan taught us to have the courage to follow our dreams by striving viable and enduring reputation for pre- OF POLICE ORGANIZATIONS, INC., Washington, DC, January 13, 1999. to play baseball for the Chicago White Sox; serving the rights and security of all Hon. BEN NIGHTHORSE CAMPBELL, Whereas Michael Jordan demonstrated the citizens. U.S. Senate, Washington, DC. importance of pursuing an education by Mr. President, I urge my colleagues DEAR SENATOR CAMPBELL. Let me first earning a bachelor of arts degree from the to join us in supporting this important take this opportunity to congratulate you on University of North Carolina at Chapel Hill; resolution. your successful reelection to the United Whereas Michael Jordan continues to con- I ask unanimous consent that letters States Senate. Thank you for your hard tribute to our communities through his sup- port for the James R. Jordan Boys & Girls of support be printed in the RECORD. work and consistent commitment to the law There being no objection, the letters enforcement community. Club and Family Life Center in Chicago, the On behalf of the National Association of Jordan Institute for Families at his alma were ordered to be printed in the Police Organizations (NAPO), representing mater, and the Ronald McDonald Houses of RECORD, as follows: more than 4,000 unions and associations and Greenville, Chapel Hill, Durham, and Win- INTERNATIONAL BROTHERHOOD over 220,000 sworn law enforcement officers, I ston-Salem, North Carolina, for families of OF POLICE OFFICERS, want to express our wholehearted support for seriously ill children who are being treated Alexandria, VA, January 5, 1999. a Joint Resolution to designate May 15, 1999, at nearby hospitals; and Hon. BEN NIGHTHORSE CAMPBELL, as National Peace Officers’ Memorial Day. Whereas Michael Jordan will take on new U.S. Senate, Every year, for one week during the month challenges in his life with the same passion Washington, DC. of May, the law enforcement community and determination that made him the great- DEAR SENATOR CAMPBELL: The Inter- pays tribute and honors the fallen heroes est basketball player ever to have lived: national Brotherhood of Police Officers who have paid the ultimate sacrifice at the Now, therefore, be it (IBPO) is an affiliate of the Service Employ- National Law Enforcement Officers Memo- Resolved, That the Senate— January 19, 1999 CONGRESSIONAL RECORD — SENATE S719 (1) congratulates Michael Jordan on his re- (3) the Federal Government work with the would not waste time and effort worry- tirement from the Chicago Bulls and profes- States to develop a State-based system to ing about recordkeeping, deductions, or sional basketball; and administer the national sales tax and that exemptions that are part of the current (2) expresses its wishes that Michael Jor- States be adequately compensated for such Tax Code. dan enjoy his life after basketball with his administration; and The national sales tax is the fairest wife, Juanita, and their 3 children, Jeffrey, (4) the Congress and States work together Marcus, and Jasmine. in an effort to repeal the sixteenth amend- alternative. Everyone pays the tax in- ment of the United States Constitution. cluding criminals, illegal aliens, and f others who currently avoid taxation. Mr. LUGAR. Mr. President, I am Wealthy Americans with lavish spend- SENATE RESOLUTION 24—EX- pleased to submit a Senate resolution ing habits would pay substantial PRESSING THE SENSE OF THE expressing the sense of the Senate that amounts of taxes under the national SENATE THAT THE INCOME TAX the income tax system be abolished sales tax. Individuals who save and in- SHOULD BE ELIMINATED AND and replaced with a broad-based con- vest their money will pay less. Gone REPLACED WITH A NATIONAL sumption tax on goods and services. are the loopholes and deductions that SALES TAX I supported IRS reform legislation passed last Congress and will continue provide advantages to those with the Mr. LUGAR submitted the following to work within the confines of our tax resources to shelter their income. resolution; which ws referred to the The national sales tax would also tax system to improve it. However, the Committee on Finance. the underground economy. When crimi- fundamental flaws of the income tax nals consume the proceeds of their ac- S. RES. 24 system remain. I strongly believe that tivities, they will pay a tax. Foreign Whereas the savings level in the United Congress should abolish the income tax tourists and illegal aliens will pay the States has steadily declined over the past 25 system in its entirety and begin anew. years, and lagged behind the industrialized The problems of the income tax are tax. Tax systems that rely on income trading partners of the United States; well documented. By taxing savings reporting will never collect any of this Whereas the economy of the United States and investment at least twice, the in- potential revenue. cannot achieve strong, sustained growth Of course, the fairness test must like- come tax has become the biggest im- without adequate levels of savings to fuel wise consider those with limited means pediment to economic growth in the productive activity; to pay taxes. Like the income tax sys- Whereas the income tax, the accompanying country. Each year it costs Americans tem, a national sales tax can and capital gains tax, and the estate and gift tax more than 5 billion hours of time to should be constructed to lessen the tax discourage savings and investment; comply with it. The system is unfair burden on those individuals with the Whereas the methods necessary to enforce and riddled with loopholes. It favors least ability to pay. One strategy for the income tax infringe on the privacy of the foreign imports and discourages Amer- citizens of the United States and, according addressing this problem would exempt ican exports. As witnesses testified be- to the Tax Foundation, divert an estimated a threshold level of goods and services fore Congress last year, the IRS regu- $225,000,000,000 of taxpayer resources to com- consumed by each American from the larly violates the privacy rights of in- ply with income tax rules and regulations; federal sales tax. Another strategy is dividuals while enforcing the income Whereas the Internal Revenue Service esti- to exempt items such as housing, food mates that each year it fails to collect 17 per tax. And finally, the system doesn’t or medicine. I am committed to design- centum, or $127,000,000,000, of the income tax work. By its own admission, the Inter- owed to the Federal Government; ing a tax system that does not fall dis- nal Revenue Service fails to collect proportionately on the less fortunate. Whereas the income tax system employs a from nearly 10 million taxpayers, with withholding mechanism that limits the The national sales tax is the most transparency of Federal taxes; an estimated $127 billion in uncollected transparent. A federal tax that is evi- Whereas the most effective tax system is taxes annually. Anything this broken dent to everyone would bolster efforts one that promotes savings, fairness, simplic- should be ended decisively. in Congress to achieve prudence in fed- ity, privacy, border adjustability, and trans- One can evaluate a tax system using eral spending. There should be no hid- parency; many criteria. It must be: (1) simple, den corporate taxes that are passed on Whereas it is estimated that the replace- (2) the least intrusive, (3) fair, (4) to consumers or withholding mecha- ment of the income tax system with a na- transparent, (5) border adjustable, and tional sales tax would cause the savings rate nisms that mask the amount we pay in (6) friendly to savings and investment. taxes. Harvard economist Dale Jor- of Americans to substantially increase; I have studied tax reform proposals Whereas the national sales tax would genson estimates that the corporate in- achieve fairness by employing a single tax with these six factors in mind. Many come tax and its compliance costs in- rate, taxing the underground economy, and are better than the current income tax. crease the cost of goods by 20 to 25 per- closing loopholes and deductions; But if we are going to overhaul our tax cent. The national sales tax would Whereas the national sales tax would system, we should choose the one that bring all these hidden costs into the achieve simplicity by eliminating record- meets these criteria. I have concluded sunshine. Every year the public and keeping for most taxpayers and greatly re- that a national sales tax is the best al- Congress should openly debate the tax ducing the number of collection points; ternative. Whereas the national sales tax would be rate necessary for the federal govern- An effective tax system should be ment to meet its obligations. If aver- the least intrusive tax system because most simple. Under a national sales tax, the taxpayers would not be required to file re- age Americans are paying that rate turns or face audits from the Internal Reve- burden of complying with the income every day, they will make certain that nue Service; tax code would be lifted. There would Congress spends public funds wisely. Whereas the national sales tax is border be no records to keep or audits to fear. American exports would also benefit adjustable and would place exporting by According to the Tax Foundation, busi- from the enactment of a national sales Americans on a level playing field with the nesses and individuals spend more than tax. We must adopt a tax system that foreign competitors of the United States; $225 billion to comply with the Tax encourages exports. Most of our trad- Whereas a national sales tax is a trans- Code. Under a national sales tax, com- ing partners have tax systems that are parent tax system that would raise Ameri- pliance costs would drop by 90 percent. cans’ awareness of the cost of the Federal border adjustable. They are able to Government; and More than 100 million individuals who strip out their tax when exporting Whereas a national sales tax would best currently file taxes would be dropped their goods. In comparison, the income achieve the goals of an effective tax system: from the tax rolls. With a national tax is not border adjustable. American Now, therefore, be it sales tax, the money individuals earned goods that are sent overseas are taxed Resolved, That it is the sense of the Senate would be their own. Its your decision twice—once by the income tax and that— to save it, invest it, or give it to your once when they reach their destina- (1) the income tax system, both personal children. It is only when you buy some- tion. In comparison, the national sales and corporate, the estate and gift tax, and thing that you are taxed. tax would not be levied on exports. It the accompanying capital gains tax be re- The national sales tax is the least in- placed with a broad-based, single-rate na- would place our exports on a level play- tional sales tax on goods and services; trusive of the tax proposals. The IRS ing field with those of our trading part- (2) the national sales tax rate be set at a would be substantially dismantled. The ners. level that raises an equivalent level of reve- IRS would no longer look over the But the last and most imperative nue as the income taxes replaced; shoulders of every taxpayer. Americans reason for replacing the income tax S720 CONGRESSIONAL RECORD — SENATE January 19, 1999 with a national sales tax is that it fifths of the Members, duly chosen and ited in 1986, do not permit the Senate would energize our economy by encour- sworn. An affirmative vote of three-fifths of to debate any of the decisions that it aging savings. The bottom line is that the Members, duly chosen and sworn, shall must make, except in closed session. In as a nation, we do not save enough. be required to sustain an appeal of the ruling fact, the rules provide that decisions of the Chair on a point of order raised under on evidentiary rulings are to be made Savings are vital because they are the paragraph 1.’’. source of all investment and productiv- with no debate whatsoever. SEC. 2. PROCEEDING TO APPROPRIATIONS BILLS ity gains—savings supply the capital IN THE SENATE. Other motions can be debated, but for buying a new machine, developing a Rule XVI of the Standing Rules of the Sen- only in private. So, for example, we ex- new product or service, or employing ate is amended by adding at the end the fol- pect that after the presentations are an extra worker. lowing: made on both sides, a motion will be The Japanese save at a rate nine ‘‘10. On any day after June 30 of a calendar made to dismiss the case against the times greater than Americans, and the year, a motion to proceed to the consider- President. Under our current rules, the Germans save five times as much as we ation of an appropriations measure shall be House managers and the President’s decided without debate.’’. do. Today, many believe that Ameri- lawyers will argue that motion, but the cans inherently consume beyond their f Senate cannot debate it in open ses- sion. In fact, if a majority of the Sen- means and cannot save enough for the ADDITIONAL STATEMENTS future. Few realize that before World ate wants to preclude debate entirely, War II, before the income tax system it can do that by simply voting against developed into its present form, Ameri- a motion to take the Senate into pri- OPENNESS ON THE IMPEACHMENT vate session for deliberations. Thus, be- cans saved a larger portion of their TRIAL fore we vote on what could be a disposi- earnings than the Japanese. tive motion in this case, our only op- A national sales tax would reverse ∑ Mr. FEINGOLD. Mr. President, I rise tions are to discuss it behind closed this trend by directly taxing consump- today in strong support of opening Sen- ate deliberations to the public during doors or not discuss it at all. tion and leaving savings and invest- I think this is wrong. We need a ment untaxed. Economists agree that a the course of the impeachment trial against President Clinton. I will there- chance to debate this motion as Sen- broad-based consumption tax would in- ators. I want to hear from my col- crease our savings rate substantially. fore support the motion to be offered by Senators HARKIN and WELLSTONE to leagues before I vote, not just after- Economist Laurence Kotlikoff of Bos- ward on television. I intend to care- ton University estimates that our sav- suspend the rules in order to open these proceedings to public scrutiny. fully and respectfully entertain my ings rate would more than triple in the colleagues’ arguments, and I refuse to first year. Economist Dale Jorgenson In this trial, the United States Sen- ate is charged by the Constitution with rule out the possibility that a well-rea- of Harvard University has concluded soned argument offering a different that the United States would have ex- deciding whether to remove from office a President twice elected by the Amer- perspective will influence my decision. perienced one trillion dollars in addi- But the American people also deserve ican people. Although I am certain tional economic growth if it had adopt- to hear what we say to each other as that every member of the Senate will ed a consumption tax like the national we debate this motion. I see little to be undertake this Constitutional respon- sales tax in 1986 instead of the current gained from closing these deliberations sibility with the utmost gravity and system. and much to be lost. We must do every- perform ‘‘impartial justice’’ as our As I have outlined here today, I be- thing we can to ensure public con- oath commands, I am concerned that lieve the national sales tax is the best fidence in our fairness and impartial- the American people will be shut out of tax system to replace the income tax. ity. How can we expect the public to this process at some of its most crucial If we enact a tax system that encour- have faith in us if we close the doors at ages investment and savings, billions moments. the very moment when we finally will of dollars of investment will flow into America’s great experiment in de- speak on the dispositive questions of our country. This makes sense—Amer- mocracy trusts the people to elect a this historic trial? ica has the most stable political sys- President in a process that consists of Opponents of openness argue that in tem, the best infrastructure, a highly months of public discussion, primaries, the only Presidential impeachment educated workforce and the largest caucuses, debates, and finally an elec- trial in our nation’s history, that of consumer market in the world. Our tion open to everyone who chooses to Andrew Johnson, the Senate’s delibera- economic growth and prosperity would participate. In stark contrast, the Sen- tions were closed. While it may be be unsurpassed. I am committed to ate’s rules preclude the public from tempting to rely on the precedent of bringing this message of hope to all seeing its deliberations on whether an the one previous Presidential impeach- Americans, and I look forward to work- impeachment case will be dismissed, ment trial, which occurred one-hun- ing with my colleagues on advancing whether witnesses will be called or fur- dred and thirty years ago, I believe we this important endeavor. ther evidence introduced, and even the should take a fresh look at this issue. f ultimate debate regarding the guilt or In particular, we should consider how innocence of the President. In short, drastically the rules of the Senate and SENATE RESOLUTION 25—TO RE- Mr. President, the Constitution trusts the composition of the Senate have FORM THE BUDGET PROCESS BY the people to elect a President, but our changed. MAKING THE PROCESS FAIRER, current Senate impeachment rules do The Senators who presided over MORE EFFICIENT, AND MORE not trust them to have even the most President Johnson’s impeachment were CLEAN passive involvement in our deliberative not elected by the American people di- Mr. MCCAIN (for himself and Mr. process, even when the debate might rectly, but were chosen by the various KYL) submitted the following resolu- result in overturning the people’s judg- state legislatures, and thus were not tion; which was referred to the Com- ment in a national election. directly responsive to the popular will. mittee on Rules and Administration. Let me take a moment to describe Today, we as Senators represent the S. RES. 25 again for my colleagues how our cur- citizens of our state directly and we SECTION 1. REQUIREMENT OF AUTHORIZATION rent impeachment rules work. The are accountable to them at the ballot FOR PROGRAMS OVER $1,000,000. Senate is not only the trier of fact in box. Furthermore, until 1929, the Sen- (a) IN GENERAL.—Paragraph 1 of rule XVI this case, but it also acts as the ulti- ate debated nominations and treaties of the Standing Rules of the Senate is mate arbiter of law. It can overturn in closed sessions; and until 1975, many amended by inserting ‘‘in excess of the Chief Justice’s rulings on evi- committee sessions took place in pri- $1,000,000,’’ after ‘‘new item of appropria- dentiary questions and make decisions, vate. Today, all of our proceedings are tion,’’. which cannot be appealed to any court, open to the public, except in rare cases (b) 60 VOTE POINT OF ORDER.—Rule XVI of the Standing Rule of the Senate is amended on motions. But the Senate’s impeach- involving national security. The rules by adding at the end the following: ment rules, which were first drafted in governing membership in the Senate as ‘‘9. Paragraph 1 may be waived or sus- connection with the Andrew Johnson well as the openness of Senate proceed- pended only by the affirmative vote of three- impeachment and most recently revis- ings have consistently evolved January 19, 1999 CONGRESSIONAL RECORD — SENATE S721 throughout our history toward greater class president, she has been a leader in should not have been. If you believe as he did public involvement. The rules govern- student government. Kayann is also a in what George Orwell meant when he wrote ing impeachment trial deliberations member of the Gilmer High 4–H and the that in the end everything is political, it must move in that direction as well. Future Homemakers of America where should be a case for celebration rather than Opening these proceedings as Sen- lamentation that he played the role, for if he she is Co-President of the local chap- had not played this role who else of his gen- ators HARKIN and WELLSTONE have pro- ter. In sports, she participated on the eration could have played it quite so well, es- posed will make the American public high school cross country and track pecially when the time came to tell a Presi- feel more involved in the process. With teams. Finally, she was named Miss dent of the United States, who was also a the percentage of voters who cast their Apple for the 1994–1995 Gilmer County very old friend, that the national interests of ballot on election day declining in each Apple Festival Pageant and Miss Apple this nation could no longer be served by our succeeding election and polls showing Princess for the 1995–1996 Pageant. continuing involvement in Vietnam? that the public feels increasingly alien- Kayann’s commitment to excellence We know of his public triumphs. Some of ated from the political process; and us also know of his personal kindnesses. also extends to the community. She is Many years ago, at a very bleak period in with people openly questioning the rel- a student member of the Gilmer Teen both my personal and professional life—you evance of their elected representatives Pregnancy Awareness Board as well as know in this city it is bleak when your and the Congress as a whole to their an active member of First Baptist phone calls are not returned by people you daily lives, we must lay open to the Church in Ellijay, Georgia. She has have known for years—there were two indi- American people our deliberations on volunteered for the Gilmer County viduals in this city who faithfully returned the most crucial decision short of de- Chamber of Commerce, American Can- my calls. One was Ben Bradlee. The other claring war that the Constitution ulti- cer Association’s Relay for Life, and was Clark Clifford. When Clark first invited mately entrusts to us. Democracy can me to his office during this bleak period to the Gilmer Arts and Heritage Associa- offer encouragement and guidance, he closed only flourish when the people feel that tion. the door, took no phone calls, sat behind his they have a stake in the process. Con- Once again, Mr. President, I would desk, his hands forming the legendary stee- ducting our impeachment deliberations like to thank Kayann Elizabeth Hay- ple and listened and advised. On that first in private sends the message that when den for her commitment to both aca- visit to his office I looked down on his desk the really important decisions need to demic and civic excellence. As we dis- where there appeared to be at least fifty be made, the American public is not cuss possible education reform, we can messages, topped by what seemed to be inau- welcome to observe. This is precisely use Kayann as a model for the type of gural medallions. I thought to myself on the wrong message to send. that first visit that Clark Clifford had put student our schools should be produc- the word on hold just to listen to me. But Thus far in the impeachment process, ing.∑ the third time I cam to his office, it occurred there has been little to celebrate. Most f to me that it was just possible those mes- Americans have concluded that the sages had been there for twenty years. House of Representative’s inquiry was CLARK CLIFFORD Clark Clifford’s final years were not what plagued by partisanship. Many fear ∑ Mr. MOYNIHAN. Mr. President, at a he would have wished for himself nor what that the Senate will do the same. With time when we risk the ever coarsening his friends would have wished for him and the eyes of the country upon it, the of our public affairs, we would do well his family. They seemed to echo the first Senate has an opportunity to restore to remember a man whose service to lines in Chapter Nine of Henry Adams’ novel this country was distinguished as no ‘‘Democracy,’’ perhaps the best novel ever America’s trust in the constitutional written about this city. The lines are: process. Open deliberations will en- other for civility and elegance. I ask ‘‘Whenever a man reaches to the top of the hance the public’s understanding and that this tribute to Clark M. Clifford political ladder, his enemies unite to pull discussion of this case. It may even by Sander Vanocur be printed in the him down. His friends become critical and serve to chip away some of the perva- RECORD. exacting.’’ On this occasion, I cannot speak sive cynicism in our country as Ameri- The tribute follows. of his enemies, but I can say that his friends cans watch how their elected rep- TRIBUTE TO CLARK CLIFFORD will not be critical or exacting. We will resentatives conduct themselves during think, instead, of Othello’s words just before (By Sander Vanocur) he dies: consideration of the articles. I trust The following anonymous poem was sent Soft you; a word or two before you go. that my colleagues will reach their de- to Clark Clifford’s daughters, Joyce and Ran- I have done the state some service, and they dall, by their sister, Faith, who could not be cisions on the merits after careful, rea- know it— here today: soned and informed consideration of No more of that. I pray you, in your letters, the evidence and the arguments pre- Think of stepping on shore When you shall these unlucky deeds relate. sented. If my trust in my colleagues is and finding it Heaven, Speak of me as I am; nothing extenuate, justified, our deliberations will be Of taking hold of a hand Nor set down aught in malice. and finding it God’s, thoughtful, high-minded, vigorous, and We who loved Clark Clifford will do that Of breathing new air, non-partisan. And if we have that de- and more. We will say now and henceforth: and finding it celestial air, Clark Clifford did the state some service and liberation in the open, it will be re- Of feeling invigorated we know it.∑ membered as one of the Senate’s finest and finding it immortality, hours.∑ Of passing from storm and tempest f f to an unbroken calm, RETIREMENT OF DEAN CALDWELL Of waking up, KAYANN ELIZABETH HAYDEN and finding it Home. ∑ Mr. COCHRAN. Mr. President, I am ∑ Mr. COVERDELL. Mr. President, I In the secular sense, Clark Clifford found pleased to bring to the attention of rise today to commend Kayann Eliza- that home in Washington more than fifty Senators the retirement of Dean beth Hayden for her commitment to years ago. And having found that home, let Caldwell, Civilian Deputy to the Presi- excellence in academics and as an out- it be said that while he was here, he graced dent of the Mississippi River Commis- standing young person. Kayann is a this place. sion. It was a much different place when he and Mr. Caldwell has accumulated over 37 senior at Gilmer High School in her Marny came here, smaller in size but larger hometown of Ellijay, Georgia. in imagination, made larger in imagination years of Federal Service, 23 of which Throughout Kayann’s schooling, she by World War II. It may have been, then and have been at the Mississippi Valley Di- has maintained an A average and is for a good time after, as John F. Kennedy vision and the Mississippi River Com- President of the Beta Club. Her peers once noted, a city of Southern efficiency and mission of the Corps of Engineers. The have voted her Most Likely To Succeed Northern charm. But it was also, at least Corps of Engineers has undergone sev- Senior Superlative for 1998–1999 school then, a place where dreams could be fash- eral reorganizations and restructures year. ioned into reality. Being an intensely politi- over the past few years, during which In addition to maintaining an out- cal city, dreams, as always, had to be fash- Dean Caldwell’s experience and dedica- ioned by reality. And it was in this art of po- standing academic record, Kayann has litical compromise where Clark Clifford tion have ensured that the mission of been involved in several sports, organi- flourished. He was known as the consum- the Corps has not been compromised. zations, and other extracurricular ac- mate Washington insider. Quite often the Mr. Caldwell oversaw the integration tivities. Currently serving as senior term was used in the pejorative sense. It of two new Corps of Engineers districts S722 CONGRESSIONAL RECORD — SENATE January 19, 1999 into the new Mississippi Valley Divi- SUZANNE MARIE HAYDEN My state and our nation owe a debt sion in April, 1997. In addition, he has ∑ Mr. COVERDELL. Mr. President, I to Senator Humphrey that can never served as the Congressional Liaison for rise today to commend Suzanne Marie be paid. the Mississippi Valley Division. In this Hayden for her commitment to excel- I owe a debt to Senator Humphrey: In capacity, he has ensured that federal lence in academics and as an outstand- the back of my mind, I continually as- legislation has served the interests of ing young person. Suzanne is a junior pire to the standard he set for Min- the entire Mississippi Valley. at Gilmer High School in her home- nesota Senators. I attempt to fulfill his He has been recognized for his out- town of Ellijay, Georgia. Throughout goal that our ‘‘public and private en- standing career, receiving the Army’s Suzanne’s schooling, she has main- deavor ought to be concentrated upon decoration for meritorious civilian tained an A average and is Treasurer of those who are in the dawn of life, our service and the Earnest P. Blankenship the Beta Club. She received the 1996 children; those who are in the twilight Engineer/Scientist Award. of life, our elderly; and those who are I know that the Senate joins me in United States Achievement Academy and was named the 1996–1997 Family in the shadows of life, our handi- thanking Dean for his years of distin- capped.’’ guished service and in extending our and Consumer Science Most Outstand- ing Student. My thoughts on Senator Humphrey’s best wishes to him in retirement.∑ passing are even more poignant this f In addition to maintaining an out- standing academic record, Suzanne has year because his wife—Senator Muriel SUPERVISOR ANDREA MEAD been involved in several sports, organi- Humphrey—died this past fall. As LAWRENCE zations, and other extracurricular ac- friends and family gathered at her fu- neral, I was struck by how blessed we Mrs. BOXER. Mr. President, today I tivities. Currently serving as the Stu- ∑ were to have these two incredible peo- would like to honor Andrea Mead Law- dent Senate Secretary/Treasurer, she has been a leader in student govern- ple pass through our lives. rence, who is retiring from the Mono I close very simply in honor of the County Board of Supervisors after 16 ment. She is also a member of the Fu- memory of this very great public man: years of distinguished service to her ture Homemakers of America where We all are better off because of his constituents. she is Georgia State President and was life. Andrea personifies the great Amer- named a 1996–1997 Outstanding FHA ∑ ican tradition of public service that is Member. In sports, she participated on f the backbone of our governmental sys- the high school cross country and TRIBUTE TO POLICE CHIEF STE- tem. As a County Supervisor, she was a track teams. PHEN R. MONIER ON HIS RE- member of the Great Basin Unified Air Suzanne’s commitment to excellence TIREMENT Pollution District since 1984, serving as also extends to the community. She is ∑ Mr. SMITH of New Hampshire. Mr. its chairman in 1989, 1993 and 1996. She an active member of First Baptist President, I rise today to commend Po- played a key role in that capacity in Church in Ellijay, Georgia. She has lice Chief Stephen R. Monier on his the negotiations with the City of Los also volunteered at the Gilmer Nursing outstanding career as a law enforce- Angeles that will lead to reversing the Home. ment agent in Goffstown, New Hamp- worst particulate air pollution problem Once again, Mr. President, I would shire. I congratulate him on his twen- in the United States, cause by the dry like to thank Suzanne Marie Hayden ty-eight years of tireless service and bed of Owens Lake in Southern Inyo for her commitment to both academic his retirement from the police force on County. and civic excellence. As we discuss pos- December 31, 1998. She also successfully worked with sible education reform, we can use Su- others for the restoration of Mono Chief Monier’s record of achievement zanne as a model for the type of stu- is worthy of outstanding honor. As an Lake and its priceless ecosystem. In dent our schools should be producing.∑ that and other efforts, she testified be- officer, he served as a Patrol Officer, fore Congress in support of creation of f Director of the Juvenile Division, Ad- the Mono Basin National Forest Scenic ministrative Services Officer, Ser- ANNIVERSARY OF THE DEATH OF geant, Lieutenant and, ultimately, Area to save Mono Lake. Over the HUBERT H. HUMPHREY years she also testified before Congress Chief. Chief Monier was a Commis- on behalf of the Bodie Protection Act, ∑ Mr. WELLSTONE. Mr. President, I sioner with the Commission on the Ac- the San Joaquin Wilderness Act, and rise to speak today to honor a great creditation of Law Enforcement Agen- the California Desert Protection Act. Minnesota Senator and a great Amer- cies, Inc., a past president of the New Andrea was the founder of Friends of ican. Hampshire Association of Police Mammoth, a citizen’s advocacy group U.S. Senator Hubert H. Humphrey (NHACP), a member for nine years on that was formed to fight environ- died on January 13, 1978. On that day, a the Council at New Hampshire Police mentally damaging development in the piece of Minnesota died—a piece of the Standard and Training and a member Town of Mammoth Lakes, her home. nation died. of New England Association of Chiefs She also founded the Southern Mono In many ways, Senator Humphrey of Police and International Associa- Historical Society. embodied the best of our state and our tions of Chiefs of Police. He also had Understanding that regional prob- nation. He was a visionary who never the honor of being selected as a mem- lems require grassroots and local in- lost sight of people in the here and ber of the 1996 Centennial Summer volvement to bring effective long term now; he was a prophet who spoke with Olympic’s Security Team in Atlanta, solutions, Andrea was a co-founder and authority and compassion; he was a Georgia, and was selected as a security Past President of the Sierra Nevada Al- leader who never lost sight of the ‘‘. .. team leader for the Athens’ Olympics. liance, a group dedicated to the preser- extraordinary possibilities in ordinary Along with this prestigious law en- vation of the ‘‘Range of Light’’ and its people.’’ Whether as the Mayor of Min- forcement career, Chief Monier was economy. neapolis or the Vice President of the President and a member of the Rotary Her public involvement is seemingly United States, Senator Humphrey was International’s Goffstown Chapter, endless and certainly on going. Early a person of dignity, integrity and hon- founding member and Board of Direc- in her career she distinguished herself esty. Even during our darkest days of tor’s member for Crispin’s House, Inc., as a member of the United States segregation and war, he never lost his a nonprofit organization designed to Olympic Ski Team in 1948, 1952, and humor or his commitment to improve assist at-risk youths and families, and 1956. In 1952 she won two Olympic Gold the lives of people. And this Happy assistant coach for the Goffstown Medals in the Slalom and Giant Slalom Warrior did improve the lives of count- Parks and Recreation Youth Basket- in the Olympic Games in Oslo, Norway. less people throughout my state and ball League. His philanthropic record is Andrea Mead Lawrence exemplifies our country. Indeed, he fulfilled his an outstanding achievement. so much that is good in America. I own pledge that ‘‘we must dedicate Police Chief Stephen R. Monier is an wish her and her family all the best as ourselves to making each man, each asset to his community as well as the she enters a new and productive part of woman, each child in America a full State of New Hampshire. His remark- her life.∑ participant in American life.’’ able record of service has made him a January 19, 1999 CONGRESSIONAL RECORD — SENATE S723 well-known and well-respected man. of American humor. Russell Baker and ‘‘uninterested,’’ because he could navi- New Hampshire has always been fortu- isn’t just one of the best newspaper gate the perilous waters between ‘‘flaunt’’ nate to have great law enforcement writers around, as Yardley puts it; he and ‘‘flout,’’ his news stories penetrated the agents, and Mr. Monier exemplifies is ‘‘one of the best writers around. Pe- philistine phalanx with lines like: ‘‘Senator Everett M. Dirksen, the Illinois Republican this ideal. I am proud of his achieve- riod.’’ and orator, looking Byronically disheveled ments and his long and honorable com- Mr. President, I ask unanimous con- . . .’’ mitment to law enforcement. I would sent that Russell Baker’s last regular Such a phrase would vanish in the hyena like to wish Chief Monier, along with ‘‘Observer’’ column entitled ‘‘A Few cacophony that passes for political discourse his wife Sandra and their two teenage Words at the End’’ (New York Times, on television today. It is all the more fitting sons, the best of luck as he embarks on December 25, 1998) appear in the CON- that Baker has become a TV star as host of this new stage in his life. It is an honor GRESSIONAL RECORD following my re- ‘‘Masterpiece Theatre.’’ In 1993, when PBS marks. I further ask unanimous con- searched for Alistair Cooke’s successor, to represent you in the United States Christopher Lydon and other lobbied hero- Senate.∑ sent that Martin F. Nolan’s column, ‘‘A ically for Baker, one of the best-read report- f journalist, a gentleman,’’ (Boston ers ever to meet a deadline. Globe, December 9, 1998) and Jonathan Baker admired his fellow Virginian, Mur- A TRIBUTE TO RUSSELL BAKER Yardley’s column, ‘‘Russell Baker: A ray Kempton, the columnist who set out in ∑ Mr. MOYNIHAN. Mr. President, Columnist’s Columnist,’’ (Washington New York every day to take the luck of the day. Writing in retirement, Baker hopes to Thomas Carlyle remarked, ‘‘A well- Post, January 4, 1999) also appear in the RECORD following my remarks. ‘‘take the luck of the year.’’ written Life is almost as rare as a well- In an ancient newspaper joke, a butler in- spent one.’’ Carlyle could have written [From the Boston Globe, December 9, 1998] forms his employer that ‘‘Some reporters are these words, if construed as a double A JOURNALIST, A GENTLEMAN here to see you, sir, and a gentleman from entendre, about my rare, dear friend, (By Martin F. Nolan, Globe Staff) The Times (or Transcript or Tribune).’’ He Russell Baker. Baker’s last ‘‘Observer’’ SAN FRANCISCO.—American journalism has may still identify with the typical Washing- column appeared in the New York marinated in wretched excess in 1998, and the ton correspondent of his day, a dirty- Times this past Christmas, ending a 36- year closes with the ultimate deprivation fingernailed hustler ‘‘who services a string of and indignity. This month, Russell Baker small papers in the Gadsden Purchase.’’ But year run. Over the course of some 3 files his final column for The New York Russell Baker adorns this increasingly rude million words, by his own reckoning, Times. trade because he is a true gentleman. Russell Baker has displayed grace, For readers, this means losing that rare gentle wit, decency, and profound in- sense of anticipation, glancing at a byline as [From the Washington Post, Jan. 4, 1999] sight into the human condition. a guarantee. Baker’s byline delivers good RUSSELL BAKER: A COLUMNIST’S COLUMNIST writing, good humor, and a ruthless honesty Nearly fifteen years ago, I stated that Rus- (By Jonathan Yardly) about himself. He does not bluff or pontifi- sell Baker has been just about the sanest ob- cate. Readers know: Character counts. Russ Christmas 1998 was bright and beautiful server of American life that we’ve had. He Baker’s sensibilities have enriched the op-ed here on the East Coast, but the happy day has been gentle with us, forgiving, under- page of the Times since 1962, longer than any also brought a great loss. The announcement standing. He has told us truths in ways we other columnist on that newspaper. of it was made that morning on the Op-Ed have been willing to hear, which is to say he Ink-stained wretches still in harness will page of the New York Times, under the has been humorous . . . on the rare occasion miss him as a role model, which in journal- chilling headline, ‘A Few Words at the End,’ he turns to us with a terrible visage of near ese means an object of fierce and unrelenting and under the byline of Russell Baker. rage and deep disappointment, we do well to envy. The green-eyed monster squats daily The headline told the story, and the open- listen all the harder. over every newsroom word processor, presid- ing of Baker’s column confirmed it. ‘Since it He leaves a huge hole I doubt any ing over pointless arguments: ‘‘I may not be is Christmas,’ he wrote, ‘a day on which no- other journalist can fill. As Boston good, but I’m fast’’ vs. ‘‘I may not be fast, body reads a newspaper anyhow, and since Globe columnist Martin F. Nolan ob- but I’m good.’’ But the most pathetic brag- this is the last of these columns titled ‘Ob- garts and most lubricated louts among us server’ which have been appearing in the served last month, ‘‘the most bathetic Times since 1962 . . . ’ at which point it was braggarts and most lubricated louts never thought we were as good or as fast as Russell Baker. all I could do to keep on reading. But read I among us never thought we were as He has written 3 million words for the ‘‘Ob- did, out loud, right to the end—‘Thanks for good or as fast as Russell Baker.’’ server’’ column, few of them out of place. His listening for the past three million words’— A life well-spent? He’s a patriot, hav- lasting contribution to American letters was when I could only blurt out: ‘Well, my world ing served as a Navy flyer during World ‘‘Growing Up, ‘‘his 1982 memoir, which ig- just got a lot smaller.’ War II. For nearly fifty years, he has nored politicians to focus on his mother, That is no exaggeration. I cannot pretend Lucy, who hectored him about ‘‘gumption’’ to have read all 3 million of those words, for been married to his beloved Miriam. there were periods when my peregrinations They have three grown children. His and often said, ‘‘Don’t be a quitter, Russell.’’ He’s hardly that. He began reporting for up and down this side of the North American career has taken him from the Balti- the Baltimore Sun in 1947, as he wrote, continent put me out of touch with the more Sun’s London Bureau to the ‘‘studying the psychology of cops, watching Times, but I read most of them and treas- Times’ Washington Bureau. He has cov- people’s homes burn’’ while trolling the same ured every one. Baker’s columns were the ered presidential campaigns, and he precincts as H.L. Mencken 50 years earlier. center of my life as a reader of newspapers, has accompanied Presidents abroad. He Instead of Mencken’s bile, he infused his and it is exceedingly difficult to imagine has met popes, kings, queens—and prose with bemusement. He moved from what that life will be without them. street reporter to rewrite with no illusions: Thirty-six years! Has any American news- common people, too, for whom he has paper columnist maintained so high a stand- such enormous and obvious empathy. ‘‘I knew that journalism was essentially a task of stringing together seamlessly an end- ard of wit, literacy and intelligence for so And now he is the welcoming presence less series of cliches.’’ Gulp. Also ouch. long a time? Only two come to mind: H.L. on Mobil Masterpiece Theatre. A profile in The Washingtonian this year Mencken and Walter Lippmann. But A life well-written? The Washington quoted Calvin Trillin on Baker as a 1950s Mencken’s columns for the Baltimore Post’s Jonathan Yardley calls Russell guy: ‘‘No complaining, no dancing in the end Evening Sun were on-and-off affairs, and Baker ‘‘a columnist’s columnist,’’ writ- zone.’’ One lesson of ‘‘Growing Up’’ is that Lippmann struggled through a long dry pe- ing, ‘‘Baker broke his own mold. He war and depression are more character-build- riod during the 1950s before being brought back to life in the 1960s by the debate over was, simply and utterly, sui generis.’’ I ing than peace and prosperity, so Baker sought no slack and no other short cuts, the Vietnam War. Baker, by contrast, was, would not use the past tense, because I which were notoriously unavailable at the like that other exemplary Baltimorean Cal doubt Russell Baker is done putting Washington bureau of The Times, which he Ripkin Jr., as consistent and reliable as he pen to paper. But the sentiment is spot joined in 1954. was brilliant. For all those years he was my on. ‘‘In those days plain English was under idea of what a journalist should be, and I A life well-written? Baker has won suspicion at the Times,’’ he once recalled. strived—with precious little success—to live two Pulitzer Prizes—one in 1979 for ‘‘Many stories read as if written by a Henry up to this example. Distinguished Commentary and an- James imitator with a bad hangover. Incom- Not that I tried to imitate him, or not that I was aware of doing so. One of the many re- other in 1983 for his 1982 autobiography, prehensible English was accepted as evidence of the honest, in inarticulate, reporter; plain markable things about Baker is that, unlike ‘‘Growing Up.’’ He has written thirteen English botherd people.’’ Mencken or Lippmann—or Baker’s old boss, other books and edited The Norton But the copy desk yielded. Because Baker James Reston, or Dorothy Thompson, or Book of Light Verse and his own book knew the difference between ‘‘disinterested’’ Drew Pearson, or Dave Barry—he really has S724 CONGRESSIONAL RECORD — SENATE January 19, 1999 no imitators. Other journalists may envy inexcusable liberty of talking about me and In Iran I have ridden in a press bus over what he did, but in a business where imita- newspapers. I love them. several miles of Oriental carpets with which tion is the sincerest form of self-promotion, I have loved them since childhood when my the Shah had ordered the street covered be- Baker broke his own mold. He was, simply Uncle Allen regularly brought home Hearst’s tween airport and town to honor the visiting and utterly, sui generis. New York Journal-American with its won- Eisenhower, a man who, during a White This made him, in the cozy and self-con- derful comics, Burris Jenkins cartoons and House news conference which I attended in gratulatory world of journalists, odd man tales of rich playboys, murderous playgirls shirtsleeves, once identified me as ‘that man out. His colleagues and competitors may and their love nests. At that age I hadn’t a that’s got the shirt on.’ have admired and respected him, but few un- guess about what a love nest might be, and I could go on and on, and probably will derstood him. While they chased around didn’t care, and since something about ‘love somewhere sometime, but the time for this after ephemeral scoops and basked in the re- nest’ sounded curiously illegal, I never asked enterprise is up. Thanks for listening for the flected glory of the famous and powerful, an adult for edification. past three million words.∑ Baker wrote what he once called ‘a casual On Sunday’s Uncle Allen always brought f column without anything urgent to tell hu- The New York Times and read himself to manity,’ about aspects of life that journal- sleep with it. Such a dismal mass of gray ROBERT DAVID SMITH ists commonly regard as beneath what they paper was of absolutely no interest to me. It ∑ Mr. COVERDELL. Mr. President, I fancy to be their dignity. Looking back to was Katenzjammer Kids and Maggie and rise today to commend Robert David the column’s beginnings, Baker once wrote: Jiggs of the King Features syndicate with whom I wanted to spend Sunday. Smith for his commitment to excel- ‘At the Times in those days the world was lence in academics and as a citizen. pretty much confined to Washington news, At my friend Harry’s house I discovered national news and foreign news. Being ruled the New York tabloids. Lots of great pic- Robert attended Gilmer High School in off those turfs seemed to leave nothing very tures. Dick Tracy! Plenty of stories about his hometown of Ellijay, Georgia. vital to write about, and I started calling condemned killers being executed, with em- While in High School, Robert was myself the Times’ nothing columnist. I phasis what they had eaten for their last named the Class of 1996 Valedictorian, meal, before walking—the last mile! The tab- didn’t realize at first that it was a wonderful loids left me enthralled by the lastness of 1996 USA Today All-Academic Team opportunity to do a star turn. Freed from the things. Scholar, winner of the 1994 National duty to dilate on the global predicament of Inevitably, I was admitted to practice the Seiko Youth Challenge, Georgia Schol- the day, I could build a grateful audience trade, and I marveled at the places news- ar, National Merit Finalist, and Senior among readers desperate for relief from the papers could take me. They took metro to Class President. He also received the Times’ famous gravity.’ suburbs on sunny Saturday afternoons to That is precisely what he did. As he no- 1995 Governor’s Proclamation, the 1995 witness the mortal results of family quarrels and 1996 D.A.R. Good Citizen Award ticed in his valedictory column, Baker’s in households that kept pistols. They took years as a gumshoe reporter immunized him me to hospital emergency rooms to listen to and the rank of Eagle Scout. from ‘columnists’ tendency to spend their people die and to ogle nurses. In college, Robert has continued his time with life’s winners and to lead lives of They took me to the places inhabited by commitment to academic excellence. isolation from the less dazzling American re- the frequently unemployed and there taught Attending Harvard University, Robert alities.’ Instead of writing self-important me the smell of poverty. In winter there was is in his Junior year majoring in Eco- thumb-suckers—‘The Coming Global Mal- also the smell of deadly kerosene stoves used nomics. He has made Dean’s List and aise,’ ‘Nixon’s Southern Strategy,’ ‘Whither for heating, though there tendency to set Cyprus?’—he concentrated on ordinary life been named a Harvard College Scholar. bedrooms on fire sent the morgue a predict- Robert’s commitment to excellence as lived by ordinary middle-class Americans able stream of customers every season. in the second half of the 20th century. He The memory of those smells has been a has also been extended to the commu- wrote about shopping at the supermarket, valuable piece of equipment during my ca- nity. At home, he has served on the about car breakdowns and mechanics who reer as a columnist. Columnists’ tendency to Gilmer County Comprehensive Plan- failed to remedy them, about television and spend their time with life’s winners and to ning Committee which analyzed its what it told us about ourselves, about chil- lead lives of isolation from the less dazzling own environmental and financial prob- dren growing up and parents growing older. American realities makes it too easy for us Quite surely it is because Baker insisted on lems. He also volunteered for the Cox sometimes to solve the nation’s problems in Creek Project which worked to solve writing about all this stuff that failed to 700 words. meet conventional definitions of ‘news’ that Newspapers have taken me into the com- local sewage and landfill problems in not until 1979 did his fellow journalists get pany of the great as well as the greatly cele- Gilmer County. Finally, as a student at around to giving him the Pulitzer Prize for brated. On these expeditions I have sat in the Harvard, Robert participates in the commentary. Probably, too, it is because he Elysee Palace and gazed on the grandeur Park Street Project where he serves as insisted on being amused by the passing that was Charles de Gaulle speaking as from a tutor at a local middle school, help- scene and writing about in an amusing way. Olympus. I have watched Nikita Khrushchev, ing students excel. He was only occasionally laugh-out-loud fresh from terrifying Jack Kennedy inside a Once again, Mr. President, I would amusing in the manner of Dave Barry—who Vienna Embassy, emerge to clown with the is now, with Baker’s retirement, the one press. like to thank Robert David Smith for genuinely funny writer in American news- I have been apologized to by Richard his commitment to academic and civic papers—but he was always witty and wry, Nixon. I have seen Adlai Stevenson, would-be excellence. As we in Congress discuss and he possessed a quality of which I am in President of the United States, shake hands possible reforms of our educational sys- awe: an ability to ingratiate himself with with a department-store dummy in Florida. tem, certainly we can use Robert as a readers while at the same time making the I have been summoned on a Saturday model for the type of student we should morning to the Capitol of the United States most mordant judgments on their society be producing in our Nation’s schools.∑ and culture. to meet with Lyndon Johnson, clad in paja- f There were times in the late years of his mas and urgently needing my advice on how column when mordancy seemed to hover at to break a civil-rights filibuster. I have often TRIBUTE TO LES CHITTENDEN the edge of bitterness. This struck me as in- been played for a fool like this by other in- explicable, but the inner life of another per- teresting men and, on occasion, equally in- ∑ Ms. MIKULSKI. Mr. President, I rise son is forever a mystery, and in any event teresting women. today to honor the contribution of an there is much in fin de siecle America about Pope John XXIII included me in an audi- outstanding Marylander, Mr. Les which to be bitter. But mostly Baker dealt ence he granted the press group en route to Chittenden. I hope my colleagues will in his stock in trade: common-sensical wis- Turkey, Iran and points east with President find inspiration in this story of devo- dom, wry skepticism, transparent decency. Eisenhower. The Pope’s feet barely reached tion and persistence. He wasn’t just the best newspaper writer the floor and seemed to dance as he spoke. Newspapers took me to Westminster Abbey Les and his wife Mary lived in an around, he was one of the best writers apartment building in Columbia, Mary- around. Period. in a rental white tie and topper to see Queen Elizabeth crowned and to Versailles in an- land where handicapped access and [From the New York Times, December 25, other rental white-tie-and-tails rig to share parking were limited. When Mary be- 1998] a theater evening with the de Gaulles and came ill and required the use of a the John F. Kennedys. A FEW WORDS AT THE END wheelchair, the Chittendens discovered Thanks to newspapers, I have made a four- just how inadequate the handicapped (By Russell Baker) hour visit to Afghanistan, have seen the Taj Since it is Christmas, a day on which no- Mahal by moonlight, breakfasted at dawn on facilities at their building were. body reads a newspaper anyhow, and since lamb and couscous while sitting by the mar- Mr. President, Les Chittenden was this is the last of these columns titled ‘Ob- ble pool of a Moorish palace in Morocco and not content to simply accept the situa- server’ which have been appearing in The one picked up a persistent family of fleas in tion. He fought to change it. His devo- Times since 1962, I shall take the otherwise the Balkans. tion to his wife of 36 years motivated January 19, 1999 CONGRESSIONAL RECORD — SENATE S725 him to take on the powers that be and I want to share this story with my He has served as Deputy District Engi- propose solutions to make disabled colleagues today because I think it’s neer since 1989. residents safer each time they parked important that we honor the meaning- During his tenure, Mr. Smith has their car and entered the building. ful contributions of Americans like Les been of tremendous assistance to me, Even though agreeing on and imple- Chittenden. Mr. Chittenden is a won- my staff, and the people of Mississippi. menting a solution proved to be dif- derful example of how one person can He has also been recognized within the ficult, Mr. Chittenden still refused to make a valuable difference in our com- Corps; receiving the Meritorious Civil- give up. munities. Mr. Chittenden’s story is an ian Service award and the Command- inspiration to us all.∑ er’s Award for Civilian Service. Five months after he began his fight In November, the Delta Council of to improve access for disabled resi- f Mississippi passed a resolution honor- dents, Les’ beloved wife Mary passed TRIBUTE TO ROY SMITH ing Mr. Smith on the occasion of his away. Mr. President, I want to send my ∑ Mr. COCHRAN. Mr. President, I am retirement which summarizes the con- condolences to Mr. Chittenden and his pleased to bring to the attention of tributions that Roy has made to our family during this difficult time. Senators the retirement of Roy Smith, State of Mississippi with these words, But, Mr. President, I also want to the Deputy District Engineer for Pro- ‘‘There has been no individual who has send my congratulations and my admi- grams and Project Management for the offered a greater contribution to the ration. Shortly after his wife’s passing, Vicksburg District of the U.S. Army future of flood protection in the Mis- Mr. Chittenden returned home one Corps of Engineers. sissippi Delta during the past quarter weekend to find that his hard work Mr. Smith has held several positions of a century than Roy Smith.’’ paid off at last—a new handicapped in the Vicksburg District, including I know the Senate joins me in thank- ramp and several new handicapped serving as Chief of the Hydrology Sec- ing Roy for his years of distinguished parking spaces were added to the build- tion, Chief of the Hydrology Branch, service and in offering our best wishes ing as a result of his persistent efforts. and Chief of the Engineering Division. for his retirement.∑ January 19, 1999 CONGRESSIONAL RECORD—DAILY DIGEST D29

Re´sume´ of Congressional Activity

OF THE ONE HUNDRED FIFTH CONGRESS This table gives a comprehensive re´sume´ of all legislative business transacted by the Senate and House from January 3, 1997 through October 21, 1998.

FIRST SESSION SECOND SESSION January 3 through November 13, 1997 January 27 through October 21, 1998 Senate House Total Senate House Total Days in session ...... 153 132 . . Days in session ...... 143 119 . . Time in session ...... 1,093 hrs., 07′ 1,003 hrs., 42′ . . Time in session ...... 1,095 hrs., 05′ 997 hrs., 42′ . . Congressional Record: Congressional Record: Pages of proceedings ...... 12,724 10,963 . . Pages of proceedings ...... 13,004 12,048 . . Extensions of Remarks ...... 2,425 . . Extensions of Remarks ...... 2,367 . . Public bills enacted into law ...... 49 104 153 Public bills enacted into law ...... 91 150 241 Private bills enacted into law ...... 1 3 4 Private bills enacted into law ...... 6 6 Bills in conference ...... 2 . . Bills in conference ...... 5 . . Measures passed, total ...... 385 544 929 Measures passed, total ...... 506 642 1,148 Senate bills ...... 121 50 . . Senate bills ...... 171 92 . . House bills ...... 101 243 . . House bills ...... 157 287 . . Senate joint resolutions ...... 5 3 . . Senate joint resolutions ...... 4 4 . . House joint resolutions ...... 17 19 . . House joint resolutions ...... 10 12 . . Senate concurrent resolutions ...... 30 13 . . Senate concurrent resolutions ...... 30 11 . . House concurrent resolutions ...... 19 46 . . House concurrent resolutions ...... 25 52 . . Simple resolutions ...... 93 170 . . Simple resolutions ...... 109 184 . . Measures reported, total ...... *248 *374 622 Measures reported, total ...... *363 *378 741 Senate bills ...... 159 4 . . Senate bills ...... 245 6 . . House bills ...... 32 244 . . House bills ...... 79 241 . . Senate joint resolutions ...... 2 1 . . Senate joint resolutions ...... 7 . . . . House joint resolutions ...... 2 11 . . House joint resolutions ...... 1 4 . . Senate concurrent resolutions ...... 13 . . . . Senate concurrent resolutions ...... 9 . . . . House concurrent resolutions ...... 2 9 . . House concurrent resolutions ...... 1 9 . . Simple resolutions ...... 38 105 . . Simple resolutions ...... 21 118 . . Special reports ...... 22 13 . . Special reports ...... 19 40 . . Conference reports ...... 20 . . Conference reports ...... 26 . . Measures pending on calendar ...... 111 40 . . Measures pending on calendar ...... 246 87 . . Measures introduced, total ...... 1,840 3,728 5,568 Measures introduced, total ...... 1,321 2,254 3,575 Bills ...... 1,568 3,088 . . Bills ...... 1,090 1,786 . . Joint resolutions ...... 39 106 . . Joint resolutions ...... 21 34 . . Concurrent resolutions ...... 70 200 . . Concurrent resolutions ...... 60 154 . . Simple resolutions ...... 163 334 . . Simple resolutions ...... 150 280 . . Quorum calls ...... 6 7 . . Quorum calls ...... 4 14 . . Yea-and-nay votes ...... 298 285 . . Yea-and-nay votes ...... 314 257 . . Recorded votes ...... 348 . . Recorded votes ...... 276 . . Bills vetoed ...... 3 . . Bills vetoed ...... 4 . . Vetoes overridden ...... Vetoes overridden ...... 2 . .

* These figures include all measures reported, even if there was no accom- panying report. A total of 158 reports have been filed in the Senate, a total of 407 reports have been filed in the House. D30 CONGRESSIONAL RECORD—DAILY DIGEST January 19, 1999

DISPOSITION OF EXECUTIVE NOMINATIONS

FIRST SESSION SECOND SESSION Civilian nominations (other than lists), totaling 98, disposed of as Civilian nominations, totaling 460 (including 124 nominations carried follows: over from the First Session), disposed of as follows: Confirmed ...... 361 Confirmed ...... 319 Unconfirmed ...... 124 Withdrawn ...... 24 Withdrawn ...... 13 Returned to White House ...... 114

Civilian nominations (FS, PHS, CG, NOAA), totaling 3,105, disposed Civilian nominations (FS, PHS, CG, NOAA), totaling 1,532 (including of as follows: 86 nominations carried over from the First Session), disposed of as follows: Confirmed ...... 3,019 Confirmed ...... 1,526 Unconfirmed ...... 86 Returned to White House ...... 6

Air Force nominations, totaling 8,141, disposed of as follows: Air Force nominations, totaling 6,091 (including 21 nominations Confirmed ...... 8,120 carried over from the First Session), disposed of as follows: Unconfirmed ...... 21 Confirmed ...... 6,087 Returned to White House ...... 4 Army nominations, totaling 6,244, disposed of as follows: Confirmed ...... 6,244 Army nominations, totaling 5,481 (including 2 nominations carried over from the First Session), disposed of as follows: Unconfirmed ...... 2 Confirmed ...... 5,478 Returned to White House ...... 3 Navy nominations, totaling 6,157, disposed of as follows:

Confirmed ...... 6,153 Navy nominations, totaling 5,051 (including 4 nominations carried Unconfirmed ...... 4 over from the First Session), disposed of as follows: Confirmed ...... 5,045 Marine Corps nominations, totaling 1,679, disposed of as follows: Returned to White House ...... 6 Confirmed ...... 1,679 Unconfirmed ...... 0 Marine Corps nominations, totaling 1,847, disposed of as follows: Confirmed ...... 1,847

Summary Summary

Total nominations received ...... 25,828 Total nominations carried over from the First Session ...... 237 Total confirmed ...... 25,576 Total nominations received this session ...... 20,225 Total unconfirmed ...... 237 Total Confirmed ...... 20,302 Total withdrawn ...... 13 Total Withdrawn ...... 27 Total returned to the White House ...... 2 Total Returned to White House ...... 133 January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D31 BILLS ENACTED INTO PUBLIC LAW (105TH, 2D SESSION)

Law No. Law No. Law No. Law No. Law No. S. 53 ...... 105–297 S. 1754 ...... 105–392 H.R. 595 ...... 105–163 H.R. 2327 ...... 105–334 H.R. 3830 ...... 105–335 S. 191 ...... 105–386 S. 1759 ...... 105–231 H.R. 624 ...... 105–287 H.R. 2370 ...... 105–291 H.R. 3874 ...... 105–336 S. 231 ...... 105–325 S. 1800 ...... 105–232 H.R. 629 ...... 105–236 H.R. 2400 ...... 105–178 H.R. 3903 ...... 105–317 S. 314 ...... 105–270 S. 1883 ...... 105–239 H.R. 633 ...... 105–382 H.R. 2411 ...... 105–280 H.R. 3910 ...... 105–355 S. 318 ...... 105–216 S. 1892 ...... 105–300 H.R. 643 ...... 105–218 H.R. 2431 ...... 105–292 H.R. 4059 ...... 105–237 S. 347 ...... 105–165 S. 1900 ...... 105–186 H.R. 651 ...... 105–189 H.R. 2472 ...... 105–177 H.R. 4060 ...... 105–245 S. 391 ...... 105–387 S. 1976 ...... 105–301 H.R. 652 ...... 105–190 H.R. 2616 ...... 105–278 H.R. 4068 ...... 105–256 S. 414 ...... 105–258 S. 2022 ...... 105–251 H.R. 678 ...... 105–331 H.R. 2631 ...... 105–159 H.R. 4079 ...... 105–295 S. 417 ...... 105–388 S. 2069 ...... 105–188 H.R. 700 ...... 105–308 H.R. 2675 ...... 105–311 H.R. 4081 ...... 105–283 S. 419 ...... 105–168 S. 2071 ...... 105–252 H.R. 765 ...... 105–229 H.R. 2676 ...... 105–206 H.R. 4083 ...... 105–373 S. 423 ...... 105–182 S. 2094 ...... 105–328 H.R. 824 ...... 105–179 H.R. 2795 ...... 105–293 H.R. 4103 ...... 105–262 S. 459 ...... 105–361 S. 2106 ...... 105–329 H.R. 848 ...... 105–191 H.R. 2807 ...... 105–312 H.R. 4110 ...... 105–368 S. 493 ...... 105–172 S. 2112 ...... 105–241 H.R. 872 ...... 105–230 H.R. 2841 ...... 105–213 H.R. 4112 ...... 105–275 S. 505 ...... 105–298 S. 2129 ...... 105–380 H.R. 930 ...... 105–264 H.R. 2843 ...... 105–170 H.R. 4151 ...... 105–318 S. 538 ...... 105–351 S. 2143 ...... 105–233 H.R. 960 ...... 105–195 H.R. 2864 ...... 105–197 S. 731 ...... 105–202 H.R. 4164 ...... 105–374 S. 2193 ...... 105–330 H.R. 1021 ...... 105–288 H.R. 2870 ...... 105–214 H.R. 4166 ...... 105–296 S. 744 ...... 105–352 S. 2206 ...... 105–285 H.R. 1023 ...... 105–369 H.R. 2877 ...... 105–198 S. 750 ...... 105–167 H.R. 4194 ...... 105–276 S. 2232 ...... 105–356 H.R. 1085 ...... 105–225 H.R. 2886 ...... 105–281 H.R. 4237 ...... 105–227 S. 758 ...... 105–166 S. 2235 ...... 105–302 H.R. 1116 ...... 105–169 H.R. 3007 ...... 105–255 S. 759 ...... 105–375 H.R. 4248 ...... 105–269 S. 2240 ...... 105–342 H.R. 1151 ...... 105–219 H.R. 3035 ...... 105–199 H.R. 4259 ...... 105–337 S. 890 ...... 105–326 S. 2241 ...... 105–364 H.R. 1184 ...... 105–192 H.R. 3042 ...... 105–156 S. 916 ...... 105–161 S. 2246 ...... 105–343 H.R. 1197 ...... 105–289 H.R. 3055 ...... 105–313 H.R. 4283 ...... 105–385 S. 927 ...... 105–160 S. 2272 ...... 105–365 H.R. 1217 ...... 105–193 H.R. 3069 ...... 105–294 H.R. 4284 ...... 105–284 S. 985 ...... 105–162 S. 2282 ...... 105–194 H.R. 1271 ...... 105–155 H.R. 3096 ...... 105–247 H.R. 4293 ...... 105–319 S. 1021 ...... 105–339 S. 2285 ...... 105–341 H.R. 1273 ...... 105–207 H.R. 3116 ...... 105–164 H.R. 4309 ...... 105–320 S. 1132 ...... 105–376 S. 2316 ...... 105–204 H.R. 1274 ...... 105–309 H.R. 3130 ...... 105–200 H.R. 4326 ...... 105–321 S. 1134 ...... 105–377 S. 2344 ...... 105–228 H.R. 1316 ...... 105–205 H.R. 3152 ...... 105–221 H.R. 4328 ...... 105–277 S. 1150 ...... 105–185 S. 2364 ...... 105–393 H.R. 1385 ...... 105–220 H.R. 3156 ...... 105–215 H.R. 4337 ...... 105–322 S. 1178 ...... 105–173 S. 2375 ...... 105–366 H.R. 1439 ...... 105–208 H.R. 3226 ...... 105–171 H.R. 4354 ...... 105–223 S. 1244 ...... 105–183 S. 2392 ...... 105–271 H.R. 1460 ...... 105–209 H.R. 3267 ...... 105–372 H.R. 4382 ...... 105–248 S. 1260 ...... 105–353 S. 2413 ...... 105–344 H.R. 1481 ...... 105–265 H.R. 3301 ...... 105–176 H.R. 4501 ...... 105–359 S. 1298 ...... 105–299 S. 2427 ...... 105–345 H.R. 1635 ...... 105–203 H.R. 3332 ...... 105–305 H.R. 4558 ...... 105–306 S. 1333 ...... 105–327 S. 2432 ...... 105–394 H.R. 1659 ...... 105–279 H.R. 3381 ...... 105–267 H.R. 4566 ...... 105–274 S. 1349 ...... 105–157 S. 2468 ...... 105–307 H.R. 1702 ...... 105–303 H.R. 3461 ...... 105–384 H.R. 4655 ...... 105–338 S. 1355 ...... 105–250 S. 2500 ...... 105–367 H.R. 1756 ...... 105–310 H.R. 3494 ...... 105–314 H.R. 4658 ...... 105–259 S. 1364 ...... 105–362 S. 2505 ...... 105–346 H.R. 1779 ...... 105–210 H.R. 3504 ...... 105–226 H.R. 4660 ...... 105–323 S. 1379 ...... 105–246 S. 2524 ...... 105–354 H.R. 1836 ...... 105–266 H.R. 3528 ...... 105–315 H.R. 4679 ...... 105–324 S. 1397 ...... 105–389 S. 2561 ...... 105–347 H.R. 1847 ...... 105–184 H.R. 3565 ...... 105–180 H.R. 4821 ...... 105–360 S. 1408 ...... 105–378 H.R. 1853 ...... 105–332 H.R. 3579 ...... 105–174 S. 1525 ...... 105–390 S.J. Res. 35 ...... 105–381 H.R. 1856 ...... 105–242 H.R. 3616 ...... 105–261 H.J. Res. 102 ...... 105–175 S. 1564 ...... 105–158 S.J. Res. 51 ...... 105–348 H.R. 2000 ...... 105–333 H.R. 3633 ...... 105–357 H.J. Res. 113 ...... 105–201 S. 1575 ...... 105–154 S.J. Res. 54 ...... 105–235 H.R. 2070 ...... 105–370 H.R. 3687 ...... 105–316 H.J. Res. 128 ...... 105–240 S. 1605 ...... 105–181 S.J. Res. 58 ...... 105–349 H.R. 2165 ...... 105–211 H.R. 3694 ...... 105–272 H.J. Res. 131 ...... 105–253 S. 1683 ...... 105–238 H.R. 2186 ...... 105–290 H.R. 3723 ...... 105–358 H.J. Res. 133 ...... 105–249 S. 1693 ...... 105–391 H.R. 6 ...... 105–244 H.R. 2202 ...... 105–196 H.R. 3731 ...... 105–222 H.J. Res. 134 ...... 105–254 S. 1695 ...... 105–243 H.R. 8 ...... 105–286 H.R. 2204 ...... 105–383 H.R. 3790 ...... 105–268 H.J. Res. 135 ...... 105–257 S. 1718 ...... 105–363 H.R. 39 ...... 105–217 H.R. 2217 ...... 105–212 H.R. 3796 ...... 105–282 H.J. Res. 136 ...... 105–260 S. 1722 ...... 105–340 H.R. 434 ...... 105–224 H.R. 2263 ...... 105–371 H.R. 3811 ...... 105–187 H.J. Res. 137 ...... 105–273 S. 1733 ...... 105–379 H.R. 449 ...... 105–263 H.R. 2281 ...... 105–304 H.R. 3824 ...... 105–234 H.J. Res. 138 ...... 105–350

BILLS VETOED S. 1502, entitled the ‘‘District of Columbia Student Opportunity Scholarship Act of 1997’’. Vetoed May 20, 1998. H.R. 2709, to impose certain sanctions on foreign persons who transfer items contributing to Iran’s efforts to acquire, develop, or produce ballistic missiles. Vetoed June 23, 1998. H.R. 2646, to amend the Internal Revenue Code of 1986 to allow tax-free expenditures from education individual retirement accounts for elementary and secondary school expenses, to increase the maximum annual amount of contributions to such accounts, and for other purposes. Vetoed July 21, 1998. H.R. 4101, making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 1999, and for other purposes. Vetoed Oct. 7, 1998. H.R. 1757, to consolidate international affairs agencies, to authorize appropriations for the Department of State and related agencies for fiscal years 1998 and 1999, and for other purposes. Vetoed Oct. 21, 1998.

HISTORY OF BILLS ENACTED INTO PUBLIC LAW

(105th Cong., 2d Sess.)

D33 D34 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 154 155 156 157 158 159 160 161 162 163 164 165 166 No. 105– Public Law 1998 1998 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 proved Date ap- Feb. 6, Feb. 11, Feb. 11, Feb. 11, Feb. 13, Nov. 13, Mar. 6, Mar. 9, Mar. 9, Mar. 20, Mar. 20, Mar. 20, April 6, 1998 1997 1998 1997 1997 1997 1997 1997 1997 1998 1998 1997 1997 Senate Feb. 4 Nov. 13 Jan. 29 Nov. 13 Nov. 13 Nov. 9 Nov. 13 Oct. 9 Oct. 9 Mar. 6 Mar. 6 June 12 Nov. 13 1998 1997 1997 1998 1998 1997 1998 1998 1998 1997 1998 1998 1998 Date of passage House Feb. 5 April 29 Nov. 13 Feb. 3 Jan. 27 Nov. 8 Feb. 11 Feb. 24 Feb. 24 Nov. 13 Feb. 24 Mar. 3 Mar. 18 Senate S 341 S 12693 S 241 S 12519 S 12706 S 12414 S 12516 S 10777 S 10778 S 1539 S 1539 S 5644 S 12692 Record Page of passage in Congressional House H 382 H 1954 H 10941 H 8 H 10384 H 403 H 524 H 528 H 10944 H 512 H 724 H 1257 152 150 147 105– Senate ...... 61 408 233 417 232 Report No. 105– House ...... 1997 1997 1997 1997 1997 Senate ...... Nov. 9 Oct. 23 Nov. 8 June 5 Nov. 8 Date Reported 1998 1997 1997 1998 1997 House ...... Jan. 29 April 21 July 31 Feb. 24 July 31 Senate CST CST App CST GA GA EPW GA Committee House TI Sci EEO Res IR App GRO GRO TI BFS TI Jud 1998 1997 1997 1997 1997 1997 1997 1997 1997 1997 1998 1997 1997 Date intro- duced Jan. 27 April 10 Nov. 13 Oct. 30 Nov. 13 Oct. 7 June 17 June 17 June 27 Feb. 5 Jan. 28 Feb. 24 May 16 Bill No. (S. 1292) (H.R. 613) (H.R. 2625) H.R. 2631 S. 916 S. 758 S. 1575 H.R. 1271 H.R. 3042 S. 1349 S. 1564 S. 927 S. 985 H.R. 595 H.R. 3116 S. 347 ...... Title . . located in the District of Columbia and Virginia as the ‘‘Ronald Reagan Washing- ton National Airport’’ tion’s research, engineering, and develop- ment programs for fiscal years 1998 through 2000, and for other purposes and Excellence in National Environmental and Native American Public Policy Act of 1992 to establish the United States Insti- tute for Environmental Conflict Resolution to conduct environmental conflict resolution and training, for other purposes issue a certificate of documentation with ap- propriate endorsement for employment in the coastwise trade for vessel PRINCE NOVA, and for other purposes of assets seized by the United States Gov- ernment during World War II which be- longed to victims of the Holocaust, and for other purposes the President on October 6, 1997, regard- ing Public Law 105-45 building located at 750 Highway 28 East in Taylorsville, Mississippi, as the ‘‘Blaine H. Eaton Post Office Building’’ Ward Street in Patterson, New Jersey, as the ‘‘Larry Doby Post Office’’ States courthouse located at 475 Mulberry Street in Macon, Georgia, as the ‘‘William Augustus Bootle Federal Building and United States Courthouse’’ with regard to financial institutions, ex- tend examination parity to the Director of the Office of Thrift Supervision and Na- tional Credit Union Administration, and for other purposes 61 Forsyth Street SW., in Atlanta, Georgia, as the ‘‘Sam Nunn Atlanta Federal Center’’ Lobbying Disclosure Act of 1995 To rename the Washington National Airport To authorize the Federal Aviation Administra- To amend the Morris K. Udall Scholarship To authorize the Secretary of Transportation to To provide redress for inadequate restitution Disapproving the cancellations transmitted by To reauthorize the Sea Grant Program To designate the United States Post Office To designate the post office located at 194 To designate the Federal building and United To address the Year 2000 computer problems To designate the Federal building located at To make certain technical corrections to the January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D35 167 168 169 170 171 172 173 174 175 176 177 178 179 180 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 April 13, April 21, April 24, April 24, April 24, April 24, April 27, May 1, May 11, May 29, June 1, June 9, June 16, June 16, 1997 1997 1998 1998 1998 1997 1997 1998 29 1998 1998 1997 1998 1998 1998 Oct. 6 June 12 April 1 April 3 April 3 Nov. 10 Sept. 26 Mar. 31 April May 19 Sept. 30 April 2 June 2 May 15 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 1997 1998 1997 1998 Mar. 30 Mar. 10 Sept. 29 Mar. 24 Mar. 24 Feb. 26 Mar. 25 Mar. 31 April 28 Mar. 27 Sept. 29 April 1 Sept. 23 April 21 S 10446 S 5589 S 3021 S 3237 S 3236 S 12484 S 10026 S 2826 S 3798 S 5128 S 10243 S 3180 S 5581 S 4930 H 1711 H 927 H 8062 H 1403 H 1400 H 645 H 1502 H 1824 H 2374 H 1685 H 8113 H 2030 H 7712 H 2075 92 168 143 ...... 418 387 469 275 467 211 486 456 ...... 1997 1998 1997 1997 1998 ...... Sept. 30 Mar. 3 Sept. 18 Nov. 7 May 21 1998 1998 1997 1998 1997 1998 1998 1997 1998 Mar. 20 Feb. 24 Nov. 7 Mar. 27 Sept. 26 Mar. 25 Mar. 27 July 28 April 21 ENR LHR FR CST Jud CST EPW Res Com IR TI Agr Jud Jud App IR BFS Com TI Bud WM TI Jud 1997 1997 1997 1997 1998 1997 1997 1998 1997 1998 1997 1997 1997 1998 May 15 Mar. 11 Mar. 18 Nov. 6 Feb. 12 Mar. 20 Sept. 15 Mar. 27 Nov. 7 Mar. 2 Sept. 15 Sept. 4 Feb. 25 Mar. 26 (S. 1115) (S. 1768) (H.R. 2460) (H.R. 2578) H.R. 2843 H.R. 3301 H.R. 2472 H.R. 2400 S. 750 S. 419 H.R. 1116 H.R. 3226 S. 493 S. 1178 H.R. 3579 H.J. Res. 102 H.R. 824 H.R. 3565 ...... National Grasslands in Billings County, North Dakota, through the exchange of Federal and private mineral interests to en- hance land management capabilities and en- vironmental and wildlife protection, for other purposes aimed at prevention of birth defects, and for other purposes sionary interest of the United States in cer- tain lands to the Clint Independent School District and the Fabens Independent School District Aviation Administration to reevaluate the equipment in medical kits carried on, and to make a decision regarding requiring automatic external defilbrillators to be car- ried on, aircraft operated by air carriers, and for other purposes convey certain lands and improvements in the State of Virginia, and for other purposes respect to scanning receivers and similar de- vices Act to modify and extend the visa waiver pilot program, and to provide for the collec- tion of data with respect to the number nonimmigrants who remain in the United States after the expiration of period stay authorized by the Attorney General tions for the fiscal year ending September 30, 1998, and for other purposes occasion of the 50th anniversary founding of the modern State Israel and reaffirming the bonds of friendship and co- operation between the United States and Israel States Code, to allow the Secretary of Treasury greater discretion with regard to the placement of required inscriptions on quarter dollars issued under the 50 States Commemorative Coin Program Policy and Conservation Act highway safety programs, and transit pro- grams, and for other purposes 717 Madison Place, NW., in the District of Columbia, as the ‘‘Howard T. Markey Na- tional Courts Building’’ trol and Safe Streets Act of 1968 To consolidate certain mineral interests in the To provide surveillance, research, and services To provide for the conveyance of rever- To direct the Administrator of Federal To authorize the Secretary of Agriculture to To amend title 18, United States Code, with To amend the Immigration and Nationality Making emergency supplemental appropria- Expressing the sense of Congress on To amend chapter 51 of title 31, United To extend certain programs under the Energy To authorize funds for Federal-aid highways, To redesignate the Federal building located at To amend Part L of the Omnibus Crime Con- D36 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 181 182 183 184 186 187 188 189 190 191 192 193 194 195 No. 105– Public Law 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 proved Date ap- June 16, June 19, June 19, June 23, 185 June 23, June 24, July 7, July 14, July 14, July 14, July 14, July 14, July 14, July 16, 1998 1997 1998 1997 23, 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Senate Mar. 11 July 11 May 13 Nov. 9 June May 1 June 5 June 10 June 25 June 25 June 25 June 25 June 25 July 9 June 25 1998 1998 1998 1997 1997 1998 1998 1998 1997 1997 1997 1997 1997 1998 1997 Date of passage House May 12 June 9 June 3 July 8 Oct. 29 June 9 May 12 June 24 Mar. 11 Mar. 11 June 10 June 10 June 10 July 14 July 8 Senate S 1803 S 7318 S 4772 S 12426 S 11376 S 4136 S 5734 S 6127 Record Page of passage in Congressional House H 3067 H 4266 H 4005 H 4868 H 4271 H 3065 H 829 H 830 H 3585 H 3586 H 3587 H 4854 38 73 205 133 134 135 136 137 127 105– Senate ...... 12 13 363 556 158 376 122 123 124 171 Report No. 105– House ...... 1998 1997 1998 1997 1997 30 1998 1998 1997 1997 1997 1997 1997 1997 Senate ...... Feb. 26 June 26 Feb. 26 Oct. 9 Sept. 5 April June 5 Nov. 4 Nov. 4 Nov. 4 Nov. 4 Nov. 4 Oct. 31 Date Reported 1997 1998 1997 1997 1997 1997 1997 1997 1997 1997 House ...... Oct. 31 June 3 June 26 Nov. 4 Mar. 11 Mar. 11 June 7 June 7 June 7 July 8 Senate Jud ENR Jud Jud Agr BHUA IA ENR ENR ENR ENR ENR ENR Committee House Jud Res Jud Jud Agr BFS Jud Com Com Com Com Com Res 1998 1997 1997 1997 1997 1998 1998 1998 1997 1997 1997 1997 1997 1998 1997 Date intro- duced Feb. 4 Mar. 11 Oct. 1 June 10 Sept. 5 April 1 May 7 May 12 Feb. 6 Feb. 6 Feb. 26 Mar. 20 Mar. 21 July 9 Mar. 5 Bill No. (H.R. 2604) (H.R. 2829) (H.R. 2534) (H.R. 3662) S. 1244 S. 2282 S. 1605 S. 423 H.R. 1847 S. 1150 S. 1900 H.R. 3811 S. 2069 H.R. 651 H.R. 652 H.R. 848 H.R. 1184 H.R. 1217 H.R. 960 ...... Title ...... help State and local jurisdictions purchase armor vests for use by law enforcement de- partments Board of Regents Gunston Hall to estab- lish a memorial to honor George Mason protect certain charitable contributions, and for other purposes against consumers research, extension, and education address high-priority concerns with national or multistate significance, to reform, extend, and eliminate certain agricultural research programs, and for other purposes pertaining to the disposition of Holocaust- era assets in the United States before, dur- ing, and after World War II, to make recommendations to the President on fur- ther action, and for other purposes pay legal child support obligations, and for other purposes located within the Fort Berthold Indian res- ervation in any case which there is con- sent from a majority interest in the parcel of land under consideration for lease Power Act for the construction of a hydro- electric project located in the State of Washington, and for other purposes Power Act for the construction of a hydro- electric project located in the State of Washington, and for other purposes Power Act applicable to the construction of the AuSable Hydroelectric Project in New York, and for other purposes Power Act for the construction of Bear Creek hydroelectric project in the State of Washington, and for other purposes Power Act for the construction of a hydro- electric project located in the State of Washington, and for other purposes for other purposes Tulare, Tulare County, California, and for other purposes To establish a matching grant program to To extend the legislative authority for To amend title 11, United States Code, to To improve the criminal law relating to fraud To ensure that federally funded agricultural To establish a commission to examine issues To establish felony violations for the failure to To permit the mineral leasing of Indian land To extend the deadline under Federal To extend the deadline under Federal To extend the deadline under Federal To extend the deadline under Federal To extend the deadline under Federal To amend the Arms Export Control Act, and To validate certain conveyances in the City of January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D37 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 July 16, July 16, July 16, July 16, July 16, July 16, July 16, July 21, July 21, July 22, July 22, July 29, July 29, July 29, July 29, July 29, 1998 1998 1998 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 June 24 June 24 June 24 June 24 April 2 June 25 July 11 June 25 July 16 June 18 May 7 May 12 July 17 July 17 July 17 July 17 1998 1998 1998 1998 1998 1998 1997 1998 1998 1997 1997 1997 1997 1997 1997 1997 May 19 Mar. 17 Mar. 17 June 16 Mar. 5 June 22 Nov. 13 June 9 July 20 June 24 Nov. 5 April 24 June 3 Sept. 23 Oct. 21 Nov. 13 S 3183 S 7318 S 4520 S 4664 H 3425 H 1176 H 1177 H 877 H 10806 H 4294 H 4232 H 10046 H 1818 H 3234 H 7649 H 8867 H 10944 40 174 110 231 203 232 237 ...... 63 444 445 554 589 362 134 364 114 253 295 273 538 422 559 1997 1997 22 1998 1997 1998 1998 1998 1998 ...... June 26 Nov. 6 April Oct. 15 June 26 June 5 June 26 July 2 1998 1998 1998 1998 1998 1998 1997 1998 1997 1997 1997 1997 1997 1997 1997 ...... May 18 Mar. 17 Mar. 17 May 22 Feb. 27 June 22 Oct. 31 June 3 June 18 Oct. 31 April 21 June 3 Sept. 18 Oct. 2 Sept. 26 LHR Fin ENR ENR GA Fin LHR ENR ENR ENR ENR Com EEO EEO TI Agr Res WM Res Res Res GRO WM GRO R Sci Res Res Agr Res Com 1997 1997 1997 1997 1998 1998 1997 1997 1998 1997 1997 1997 1997 1997 1997 1997 July 17 Nov. 7 Nov. 7 Nov. 12 Jan. 28 Mar. 4 May 8 May 15 July 15 April 14 Oct. 21 April 10 April 24 April 24 June 4 July 15 (S. 1046) H.R. 3035 H.R. 1635 H.R. 1273 H.R. 1439 H.R. 1779 H.R. 2165 H.R. 2202 H.R. 2864 H.R. 2877 H.R. 3130 H.J. Res. 113 S. 731 S. 2316 H.R. 1316 H.R. 2676 H.R. 1460 ...... revise and extend the bone marrow donor program, and for other purposes program under which employers may con- sult with State officials respecting compli- ance with occupational safety and health re- quirements Act of 1970 vide advice and recommendations on the creation of an integrated, coordinated Fed- eral policy designed to prepare for and re- spond to serious drought emergencies dure for States that fail to meet Federal child support data processing requirements, to reform Federal incentive payments for ef- fective child support performance, and to provide for a more flexible penalty proce- dure for States that violate interjurisdic- tional adoption requirements King, Jr. Memorial in the Nation’s Capitol struction of the National Peace Garden me- morial, and for other purposes Park Service the National Underground Railroad Network to Freedom program, and for other purposes to Congress a plan ensure that all amounts accrued on the books of United States Enrichment Corporation for the disposition of depleted uranium hexafluoride will be used to treat and recy- cle depleted uranium hexafluoride Code, with respect to the order of prece- dence to be applied in the payment of life insurance benefits to restructure and reform the Internal Reve- nue Service, and for other purposes 1998 and 1999 for the National Science Foundation, and for other purposes National Forest, in the State of California to Placer County, California Guam by other than separate ballot, and for other purposes boundary of the Devils Backbone Wilder- ness in the Mark Twain National Forest, Missouri, to exclude a small parcel of land containing improvements Power Act applicable to the construction of FERC Project Number 3862 in the State of Iowa, and for other purposes To amend the Public Health Service Act to To require the Secretary of Labor to establish a To amend the Occupational Safety and Health To establish an advisory commission to pro- To provide for an alternative penalty proce- Approving the location of a Martin Luther To extend the legislative authority for con- To establish within the United States National To require the Secretary of Energy to submit To amend chapter 87 of title 5, United States To amend the Internal Revenue Code of 1986 To authorize appropriations for fiscal years To facilitate the sale of certain land in Tahoe To allow for election of the Delegate from To make a minor adjustment in the exterior To extend the deadline under Federal D38 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 212 213 214 216 217 218 219 220 224 215 221 222 223 No. 105– Public Law 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 proved Date ap- July 29, July 29, July 29, July 29, Aug. 5, Aug. 7, Aug. 7, Aug. 7, Aug. 12, July 29, Aug. 7, Aug. 7, Aug. 7, 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 Senate July 17 July 17 July 14 Nov. 9 July 23 July 31 July 28 May 5 July 17 July 14 July 29 July 30 July 31 1998 1998 1998 1998 1997 1997 1998 1997 1997 1998 1998 1998 1998 Date of passage House May 12 May 12 Mar. 19 July 14 April 23 Sept. 23 April 1 May 16 Nov. 4 June 16 June 25 July 16 July 31 Senate S 12410 S 4266 Record Page of passage in Congressional House H 3034 H 3035 H 1319 H 1744 H 7711 H 1885 H 2860 H 9983 238 239 219 129 222 193 109 236 105– Senate ...... 59 93 509 510 443 231 472 359 Report No. 105– House ...... 1998 1998 1998 1997 1998 1998 1998 1997 1998 Senate ...... July 2 July 2 June 22 Oct. 31 June 25 July 22 May 21 Oct. 15 July 2 Date Reported 1998 1998 1998 1997 1997 1998 1997 1997 House ...... May 6 May 6 Mar. 13 April 21 July 31 Mar. 30 May 8 Oct. 30 Senate ENR ENR FR BHUA EPW EPW BHUA LHR LHR ENR Committee House Com Com IR BFS Res TI BFS EEO EEO NS HO WM Res 1997 1997 1997 1998 1997 1997 1997 1997 1997 1998 1998 1998 1997 Date intro- duced July 22 Nov. 6 Nov. 7 Feb. 4 Feb. 12 Jan. 7 Feb. 6 Mar. 20 April 17 Feb. 4 April 23 July 30 Jan. 9 (S. 627) Bill No. (S. 1758) (S. 1186) H.R. 2217 H.R. 2841 S. 318 H.R. 643 H.R. 1151 H.R. 4354 H.R. 2870 H.R. 3156 H.R. 39 H.R. 1385 H.R. 3152 H.R. 3731 H.R. 434 ...... Title . . . Power Act applicable to the construction of FERC Project Number 9248 in the State of Colorado, and for other purposes tion of a hydroelectric project to facilitate protection of tropical forests through debt reduction with developing countries with tropical forests son Rolihlahla Mandela of cancellation rights with respect to private mortgage insurance which is required as a condition for entering into a residential mortgage transaction, to abolish the Thrift Depositor Protection Oversight Board, and for other purposes tion Act be constructed at the corner of Superior and Huron Roads, in Cleveland, Ohio, as the ‘‘Carl B. Stokes United States Courthouse’’ clarify existing law and ratify the long- standing policy of the National Credit Union Administration Board with regard to field of membership Federal credit unions ployment, training, literacy, and vocational rehabilitation programs in the United States, and for other purposes non-profit food banks are not employees for purposes of the Fair Labor Standards Act 1938 the Sandia Technology Transfer Center in Albuquerque, New Mexico, as the ‘‘Steve Schiff Auditorium’’ Memorial Fund on behalf of the families Detective John Michael Gibson and Private First Class Jacob Joseph Chestnut of the United States Capitol Police of land in the Carson National Forest and the Santa Fe National Forest, New Mexico, to the village of El Rito and town Jemez Springs, New Mexico To extend the deadline under Federal To extend the time required for construc- To amend the Foreign Assistance Act of 1961 To present a congressional gold medal to Nel- To require automatic cancellation and notice To reauthorize the African Elephant Conserva- To designate the United States courthouse to To amend the Federal Credit Union Act to To consolidate, coordinate, and improve em- To provide that certain volunteers at private To designate the auditorium located within To establish the United States Capitol Police To provide for the conveyance of small parcels January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D39 225 226 228 229 230 231 232 234 236 237 238 239 227 233 235 240 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Aug. 12, Aug. 12, Aug. 12, Aug. 13, Aug. 13, Aug. 13, Aug. 13, Aug. 14, Sept. 20, Sept. 20, Sept. 23, Sept. 23, Aug. 12, Aug. 13, Aug. 14, Sept. 25, 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 July 30 July 31 July 30 July 17 July 30 July 31 June 2 July 31 April 1 June 25 July 17 July 31 July 31 July 16 July 31 Sept. 17 1998 1998 1998 1997 1998 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 Feb. 3 June 3 Aug. 3 July 22 July 30 Aug. 3 Aug. 4 June 16 Oct. 7 June 22 Sept. 9 Sept. 9 July 30 Aug. 3 Aug. 3 Sept. 17 S 5580 S 3019 H 190 H 3991 H 5544 H 8537 215 115 267 213 228 263 ...... 326 533 179 549 619 574 181 578 ...... 1998 1998 1997 1998 1998 1998 1998 1998 1998 ...... July 16 July 22 Oct. 28 May 21 July 9 July 27 July 27 June 10 July 24 1997 1998 1997 1998 1998 1998 1998 1997 1998 ...... Oct. 21 May 13 July 14 May 22 July 14 July 14 June 9 July 15 June 16 Jud EPW Agr ENR Jud EPW Jud CST FR ENR EPW Jud TI GRO R Res Jud Com TI Sci Com Com App Res App 1997 1998 1998 1998 1997 1997 1998 1998 1998 1998 1998 1997 1998 1998 1998 1998 Mar. 17 Mar. 19 July 16 July 22 Feb. 13 Feb. 27 Mar. 13 Mar. 19 June 9 May 11 June 25 Feb. 6 June 16 Feb. 26 Mar. 31 Sept. 16 (S. 2038) (S. 2160) H.R. 3504 S. 1800 H.R. 629 H.R. 1085 H.R. 4237 S. 2344 H.R. 765 H.R. 872 S. 1759 S. 2143 H.R. 3824 S.J. Res. 54 H.R. 4059 S. 1683 S. 1883 H.J. Res. 128 ...... stantive change certain general and perma- nent laws, related to patriotic and national observances, ceremonies, and organizations, as title 36, United States Code, ‘‘Patriotic and National Observances, Ceremonies, Organizations’’ authorize appropriations for the John F. Kennedy Center for the Performing Arts and to further define the criteria for capital repair and operation maintenance tion Center and Sports Arena Authorization Act of 1995 to revise the revenues and ac- tivities covered under such Act, and for other purposes Act to provide for the advance payment, in full, of the fiscal year 1999 payments other- wise required under production flexibility contracts horses in Cape Lookout National Seashore actions against raw materials and bulk com- ponent suppliers to medical device manufac- turers, and for other purposes Forum of the United States States courthouse located at 85 Marconi Boulevard in Columbus, Ohio, as the ‘‘Jo- seph P. Kinneary United States Courthouse’’ States Code, to authorize the Administrative Assistant to the Chief Justice accept vol- untary services, and for other purposes from its coverage certain fasteners approved by the Federal Aviation Administration for use in aircraft able and material breach of its international obligations Texas Low-Level Radioactive Waste Dis- posal Compact tion, family housing, and base realignment and closure for the Department of Defense for the fiscal year ending September 30, 1999, and for other purposes part of the Lake Chelan National Recreation Area from the Secretary of Interior to the Secretary of Agriculture for inclusion in the Wenatchee National Forest vey the Marion National Fish Hatchery and the Claude Harris National Aquacultural Research Center to the State of Alabama, and for other purposes cal year 1999, and for other purposes To revise, codify, and enact without sub- To amend the John F. Kennedy Center Act to To amend the District of Columbia Conven- To amend the Agricultural Market Transition To ensure maintenance of a herd wild To establish rules governing product liability To grant a Federal charter to the American GI To designate the Federal building and United To amend chapter 45 of title 28, United Amending the Fastener Quality Act to exempt Finding the Government of Iraq in unaccept- To grant the consent of Congress to Making appropriations for military construc- To transfer administrative jurisdiction over To direct the Secretary of Interior to con- Making continuing appropriations for the fis- D40 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 242 243 244 245 247 248 250 252 255 241 246 249 251 253 254 No. 105– Public Law 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 proved Date ap- Oct. 5, Oct. 6, Oct. 7, Oct. 7, Oct. 9, Oct. 9, Oct. 9, Oct. 9, Oct. 14, Sept. 28, Oct. 8, Oct. 9, Oct. 9, Oct. 12, Oct. 12, 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Senate Sept. 11 July 17 July 9 June 23 Sept. 28 Sept. 25 June 2 Sept. 10 Oct. 1 July 31 June 19 Oct. 9 July 13 Oct. 9 Oct. 12 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Date of passage House Nov. 4 Sept. 18 May 6 June 22 Mar. 24 Sept. 15 Sept. 23 Sept. 28 Sept. 14 Sept. 14 Aug. 6 Oct. 9 Oct. 7 Oct. 8 Oct. 12 Senate S 5580 Record Page of passage in Congressional House H 9985 H 2920 H 1408 244 181 206 296 241 105– Senate ...... 329 697 481 581 446 713 562 Report No. 105– House ...... 1998 1998 1998 1998 1998 1998 1998 1998 1998 Senate ...... July 28 July 28 July 10 May 4 Mar. 5 Aug. 25 May 21 May 21 July 8 Date Reported 1997 1998 1998 1998 1998 1998 1998 House ...... Oct. 21 Sept. 9 April 17 June 16 Mar. 17 Sept. 14 June 3 Senate LHR EPW ENR LHR Jud GA EPW Jud GA Committee House Res Res EEO App EEO Com App Jud GRO HO App EEO Sci 1998 1997 1998 1997 1998 1997 1998 1998 1998 1997 1998 1998 1998 1998 1997 Date intro- duced May 22 June 10 Mar. 2 Jan. 7 June 16 Nov. 5 Jan. 27 Aug. 3 Oct. 9 Oct. 31 April 30 May 13 Oct. 7 Oct. 12 Nov. 9 Bill No. (S. 2138) (S. 1882) H.R. 4060 S. 2022 S. 2071 H.R. 3007 S. 2112 H.R. 1856 S. 1695 H.R. 6 S. 1379 H.R. 3096 H.R. 4382 H.J. Res. 133 S. 1355 H.J. Res. 131 H.J. Res. 134 ...... Title . . . . Act of 1970 applicable to the United States Postal Service in the same manner as any other employer to direct the Secretary of Interior conduct a volunteer pilot project at one na- tional wildlife refuge in each United States Fish and Wildlife Service region, for other purposes study the suitability and feasibility of des- ignating the Sand Creek Massacre National Historic Site in the State of Colorado as a unit of the National Park System, and for other purposes the Higher Education Act of 1965, and for other purposes development for the fiscal year ending Sep- tember 30, 1999, and for other purposes Code, and the National Security Act of 1947 to require disclosure under the Free- dom of Information Act regarding certain persons, disclose Nazi war criminal records without impairing any investigation or prosecution conducted by the Department of Justice or certain intelligence matters, and for other purposes of benefits for convicted persons revise and extend the program for mam- mography quality standards the fiscal year 1999, and for other purposes cated at 141 Church Street in New Haven, Connecticut, as the ‘‘Richard C. Lee United States Courthouse’’ criminal justice identification, information, communications, and forensics administered by the Secretary of Commerce the remainder of One Hundred Fifth Congress with respect to any bill or joint resolution making general or continuing ap- propriations for fiscal year 1999 the fiscal year 1999, and for other purposes ment of Women in Science, Engineering, and Technology Development To make the Occupational Safety and Health To amend the Fish and Wildlife Act of 1956 To authorize the Secretary of Interior to To extend the authorization of programs under Making appropriations for energy and water To amend section 552 of title 5, United States To correct a provision relating to termination To amend the Public Health Service Act to Making further continuing appropriations for To designate the United States courthouse lo- To provide for the improvement of interstate To extend a quarterly financial report program Waiving certain enrollment requirements for Making further continuing appropriations for To establish the Commission on Advance- January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D41 256 258 261 262 263 264 265 266 267 270 257 259 260 268 269 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Oct. 14, Oct. 14, Oct. 17, Oct. 17, Oct. 19, Oct. 19, Oct. 19, Oct. 19, Oct. 19, Oct. 19, Oct. 14, Oct. 15, Oct. 16, Oct. 19, Oct. 19, 1998 21 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Oct. 1 April June 25 July 30 Oct. 2 Sept. 1 Oct. 2 Sept. 30 Oct. 2 July 30 Oct. 14 Oct. 8 Oct. 16 Oct. 6 Oct. 6 1998 1998 1998 1998 1997 1997 1998 1997 1998 1998 1998 1998 1998 1998 1998 Sept. 23 Aug. 4 May 21 June 24 April 23 April 16 Sept. 23 Nov. 4 Sept. 23 Oct. 5 Oct. 14 Oct. 1 Oct. 16 Aug. 4 Sept. 28 S 3313 H 3715 H 1750 H 1571 H 9983 61 200 291 295 257 269 ...... 68 733 532 591 715 374 723 ...... 1997 1998 1998 1998 1998 ...... July 31 Aug. 25 Aug. 25 July 21 July 28 1998 1998 1998 1997 1998 1997 1998 ...... Sept. 18 May 12 June 22 April 23 Sept. 15 Nov. 4 Sept. 16 CST ENR GA GA BHUA GA Res App Jud App NS App Res GRO Res GRO Res Agr BFS Res GRO 1998 1998 1997 1998 1998 1998 1998 1997 1997 1997 1997 1998 1998 1998 1997 June 16 Oct. 14 Mar. 10 Oct. 1 Oct. 16 April 1 June 22 Jan. 20 Mar. 5 April 29 June 10 Mar. 5 May 5 July 16 Feb. 12 (S. 2132) H.R. 4658 H.R. 3616 H.R. 1481 H.R. 3381 S. 314 H.R. 4068 H.J. Res. 135 S. 414 H.J. Res. 136 H.R. 4103 H.R. 449 H.R. 930 H.R. 1836 H.R. 3790 H.R. 4248 ...... relating to Native Americans, and for other purposes the fiscal year 1999, and for other purposes courage competition in international ship- ping and growth of United States exports, and for other purposes entry-exit control system must be developed the fiscal year 1999, and for other purposes 1999 for military activities of the Depart- ment of Defense, to prescribe military per- sonnel strengths for fiscal year 1999, and for other purposes Defense for the fiscal year ending September 30, 1999, and for other purposes Federal lands in Clark County, Nevada, and to provide for the acquisition of environ- mentally sensitive lands in the State of Ne- vada travel charge cards for all payments of ex- penses of official Government travel, to amend title 31, United States Code, to es- tablish requirements for prepayment audits of Federal agency transportation expenses, to authorize reimbursement of Federal agency employees for taxes incurred on travel or transportation reimbursements, and to au- thorize test programs for the payment of Federal employee travel expenses and reloca- tion expenses Restoration Act of 1990 to provide for im- plementation of recommendations the United States Fish and Wildlife Service contained in the Great Lakes Fishery Res- toration Study Report Code, to improve administration of sanc- tions against unfit health care providers under the Federal Employees Health Bene- fits Program, and for other purposes Secretary of the Interior to exchange land and other assets with Big Sky Lumber Co. mint coins in commemoration of the bicen- tennial of the Library Congress of the Migratory Bird Hunting and Con- servation Stamps to promote additional stamp purchases tions of the Federal Government that are not inherently governmental functions, and for other purposes To make certain technical corrections in laws Making further continuing appropriations for To amend the Shipping Act of 1984 to en- To extend the date by which an automated Making further continuing appropriations for To authorize appropriations for fiscal year Making appropriations for the Department of To provide for the orderly disposal of certain To require Federal employees to use To amend the Great Lakes Fish and Wildlife To amend chapter 89 of title 5, United States To direct the Secretary of Agriculture and To require the Secretary of Treasury to To authorize the use of receipts from sale To provide a process for identifying the func- D42 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 272 275 276 278 279 280 281 282 271 273 274 277 No. 105– Public Law 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 proved Date ap- Oct. 20, Oct. 21, Oct. 21, Oct. 22, Oct. 23, Oct. 26, Oct. 26, Oct. 26, Oct. 19, Oct. 20, Oct. 21, Oct. 21, 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Senate June 26 July 21 July 30 Oct. 8 Oct. 7 Oct. 7 Oct. 2 Oct. 2 Sept. 28 Oct. 20 Oct. 14 July 30 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 1998 Date of passage House May 7 June 25 July 29 Nov. 7 Sept. 23 June 22 May 12 June 16 Oct. 1 Oct. 19 Oct. 10 July 30 Senate Record Page of passage in Congressional House H 2978 H 10199 H 3032 185 216 392 292 293 105– Senate ...... 508 595 610 704 568 527 561 648 321 Report No. 105– House ...... 1998 1998 1998 1998 1998 Senate ...... Sept. 17 May 7 Sept. 25 Aug. 25 Aug. 25 Date Reported 1998 1998 1998 1998 1997 1998 1998 1998 1998 House ...... May 5 June 23 July 8 July 24 Oct. 14 Sept. 11 June 5 May 12 June 3 Senate Jud LHR LHR ENR ENR ENR Committee House Int App GRO WM App App App EEO Res Res Res Res 1998 1998 1998 1998 1998 1998 1998 1997 1997 1997 1997 1998 Date intro- duced July 30 April 21 Oct. 19 Sept. 15 June 23 July 8 July 24 Oct. 6 May 16 Sept. 5 Nov. 7 May 5 Bill No. (S. 2168) (S. 2455) (S. 2052) H.R. 4566 H.R. 4194 H.R. 4328 H.R. 2411 H.R. 2886 S. 2392 H.R. 3694 H.J. Res. 137 H.R. 4112 H.R. 2616 H.R. 1659 H.R. 3796 ...... Title . . . . information about computer processing problems, solutions, test practices and results, and related matters in connection with the transition to year 2000 1999 for intelligence and intelligence-relat- ed activities of the United States Govern- ment, the Community Management Ac- count, and the Central Intelligence Agency Retirement and Disability System, for other purposes the fiscal year 1999, and for other purposes to the National Capital Revitalization and Self-Government Improvement Act of 1997 Branch for the fiscal year ending September 30, 1999, and for other purposes Veterans Affairs and Housing Urban Development, and for sundry independent agencies, boards, commissions, corporations, and offices for the fiscal year ending Sep- tember 30, 1999, and for other purposes Transportation and related agencies for the fiscal year ending September 30, 1999, and for other purposes and Secondary Education Act of 1965 to improve and expand charter schools the acquisition of private mineral interests within the Mount St. Helens National Vol- canic Monument mandated by the 1982 Act that established the Monument, and for other purposes Cape Cod National Seashore and to extend the authority for Cape Cod National Seashore Advisory Commission Stanislaus National Forest, California, under which a private contractor will perform multiple resource management activities for that unit of the National Forest System convey the administrative site for Rogue River National Forest and use the proceeds for the construction or improvement of of- fices and support buildings for the Rogue River National Forest and the Bureau of Land Management To encourage the disclosure and exchange of To authorize appropriations for fiscal year Making further continuing appropriations for To make technical and clarifying amendments Making appropriations for the Legislative Making appropriations for the Departments of Making appropriations for the Department of To amend titles VI and X of the Elementary To provide for the expeditious completion of To provide for a land exchange involving the To provide for a demonstration project in the To authorize the Secretary of Agriculture to January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D43 283 285 286 287 288 290 291 292 293 294 295 296 297 284 289 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Oct. 26, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 26, Oct. 27, 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Oct. 7 July 27 Oct. 5 Oct. 9 Oct. 9 Oct. 2 Oct. 15 Oct. 9 Oct. 7 Oct. 9 Oct. 7 Oct. 7 July 30 Oct. 8 Oct. 15 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Sept. 28 Sept. 14 July 20 Feb. 26 May 12 Mar. 30 Oct. 5 May 14 Sept. 15 June 16 Sept. 15 Sept. 15 Oct. 7 Sept. 15 Oct. 9 H 639 H 3033 H 1707 H 3294 256 355 297 323 342 378 393 118 ...... 6 748 634 506 459 742 480 604 571 717 705 666 ...... 1998 1998 1998 1998 1998 1998 1998 1997 ...... July 21 Sept. 28 Sept. 1 Sept. 9 Sept. 22 Sept. 25 Sept. 25 Oct. 29 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 ...... Sept. 25 July 31 July 20 Feb. 25 May 5 Mar. 24 Sept. 24 April 1 May 8 May 8 June 25 June 9 Sept. 15 Sept. 11 ENR LHR EPW CST ENR IA ENR ENR Jud Com Res Com Com Res Jud Res Res IR WM Jud BFS R Res Res Res Res Jud 1998 1998 1998 1997 1997 1997 1997 1997 1997 1997 1997 1997 1998 1998 1997 June 18 July 21 June 23 Jan. 7 Feb. 6 Mar. 11 Mar. 20 July 17 July 31 Sept. 8 Nov. 4 Nov. 13 June 18 June 25 Jan. 21 H.R. 4284 H.R. 8 H.R. 2186 H.R. 4079 H.R. 4166 H.R. 4081 S. 2206 H.R. 624 H.R. 1021 H.R. 1197 H.R. 2370 H.R. 2431 H.R. 2795 H.R. 3069 S. 53 ...... Power Act applicable to the construction of a hydroelectric project in the State of Ar- kansas tablish a memorial to honor Mahatma Gan- dhi in the District of Columbia come Home Energy Assistance Act of 1981, and the Community Services Block Grant Act to reauthorize and make improvements to those Acts, establish demonstration projects that provide an opportunity for persons with limited means to accumulate assets, and for other purposes into the United States of certain foreign motor vehicles that do not comply with State laws governing motor vehicles emis- sions, and for other purposes procity Act of 1993 to clarify certain re- quirements and to improve the flow of interstate commerce tain National Forest System lands within the Routt National Forest in State of Colorado protect patent owners against the unauthor- ized sale of plant parts taken from plants il- legally reproduced, and for other purposes provide assistance to the National Historic Trails Interpretive Center in Casper, Wyo- ming purposes of clarifying the local judicial structure and the office of Attorney General Monitoring, to provide for the imposition of sanctions against countries engaged in a pattern of religious persecution, and for other purposes reau of Reclamation and irrigation water contractors in Wyoming and Nebraska that receive water from Glendo Reservoir Indian Policy to allow the Advisory Council to advise Congress on the implementation of the proposals and recommendations the Advisory Council control devices at Folsom Dam in California the sale or lease of school land trust laws to major league baseball, and for other purposes To extend the deadline under Federal To authorize the Government of India to es- To amend the Head Start Act, Low-In- To amend the Clean Air Act to deny entry To amend the Armored Car Industry Reci- To provide for a land exchange involving cer- To amend title 35, United States Code, to To authorize the Secretary of Interior to To amend the Organic Act of Guam for To establish an Office of Religious Persecution To extend certain contracts between the Bu- To extend the Advisory Council on California To authorize the construction of temperature To amend the Idaho Admission Act regarding To require the general application of anti- D44 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 299 303 306 307 308 298 300 301 302 305 No. 105– Public Law 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 proved Date ap- Oct. 27, Oct. 28, 304 Oct. 28, Oct. 29, Oct. 30, Oct. 27, Oct. 27, Oct. 27, Oct. 27, Oct. 28, 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Senate June 2 July 30 Oct. 28, Oct. 8 Oct. 7 Oct. 12 Oct. 7 Oct. 6 July 13 Oct. 7 Oct. 8 1998 1997 1998 1998 1998 1997 1998 1998 1998 1998 1998 Date of passage House Oct. 9 Nov. 4 Aug. 4 Sept. 23 Oct. 10 Sept. 8 Oct. 7 Oct. 7 Oct. 7 Oct. 9 Sept. 14 Senate S 5580 Record Page of passage in Congressional House H 9983 H 6968 198 407 349 105– Senate ...... 347 551 735 241 452 Report No. 105– House ...... 1998 1998 1998 1998 1998 1998 1998 Senate ...... May 21 May 21 June 25 Sept. 24 June 2 Sept. 25 Sept. 28 Date Reported 1998 1997 1998 1998 1998 1997 House ...... Mar. 18 Oct. 24 May 22 July 22 Sept. 22 Sept. 3 Senate Jud EPW Jud Jud Jud CST CST ENR IA Committee House Jud Jud Jud EEO Sci Jud Com WM Sci WM Com Res Res 1997 1997 1998 1998 1998 1997 1997 1998 1998 1998 1997 Date intro- duced Mar. 20 Oct. 20 Mar. 31 April 23 June 25 May 22 July 29 Mar. 4 Sept. 14 Sept. 14 Feb. 12 Bill No. (S. 2037) (H.R. 2589) H.R. 1702 S. 505 S. 1298 S. 1892 S. 1976 S. 2235 H.R. 2281 H.R. 3332 H.R. 4558 S. 2468 H.R. 700 ...... Title . . . . States Code, with respect to the duration of copyright, and for other purposes Florence, Alabama, as the ‘‘Justice John McKinley Federal Building’’ judge of a court exercising judicial power under article III of the United States Con- stitution (other than the Supreme Court) may not be appointed as a judge of the same court, and for other purposes victims of crime with developmental dis- abilities, to collect data measure the magnitude of the problem, and to develop strategies to address the safety and justice needs of victims crime with develop- mental disabilities trol and Safe Streets Act of 1968 to encour- age the use of school resource officers cial space industry in the United States, and for other purposes plement the World Intellectual Property Organization Copyright Treaty and Per- formances and Phonograms Treaty Act of 1991 to authorize appropriations for fiscal years 1999 and 2000 for the Next Generation Internet program, to require the Advisory Committee on High-Performance Computing and Communications, Informa- tion Technology, and the Next Generation Internet to monitor and give advice con- cerning the development and implementa- tion of the Next Generation Internet pro- gram and report to the President Congress on its activities, and for other pur- poses provision of benefits for noncitizens, and to improve the provision of unemployment in- surance, child support, and supplemental se- curity income benefits tor Center as the Dante Fascell Visitor Cen- ter of certain revenues from the Mineral Springs parcel to certain members of the Agua Caliente Band of Cahuilla Indians To amend the provisions of title 17, United To designate a Federal building located in To provide that a person closely related to To increase public awareness of the plight To amend part Q of the Omnibus Crime Con- To encourage the development of a commer- To amend title 17, United States Code, to im- To amend the High-Performance Computing To make technical amendments to clarify the To designate the Biscayne National Park Visi- To remove the restriction on distribution January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D45 309 310 311 312 313 314 315 316 317 320 321 318 319 322 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Oct. 9 Oct. 15 Oct. 5 Oct. 13 Oct. 15 Oct. 9 Oct. 7 Oct. 14 Oct. 2 Oct. 8 Oct. 14 Oct. 14 Oct. 8 Oct. 9 1997 1998 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 April 24 Oct. 5 Nov. 4 April 28 Oct. 12 June 11 April 21 Aug. 7 Sept. 15 Sept. 14 Oct. 12 Oct. 7 Oct. 7 Sept. 28 H 1808 H 9983 H 2348 H 4531 H 2076 337 410 ...... 64 608 373 708 557 487 706 709 810 495 ...... 1998 1998 1998 1998 ...... Sept. 21 Sept. 17 July 30 Sept. 25 1997 1998 1997 1998 1998 1998 1998 1998 1998 1998 April 21 June 25 Nov. 4 April 28 Sept. 11 June 3 April 21 Sept. 11 Sept. 14 Oct. 12 CST GA EPW Jud Jud ENR Sci BFS Jud GRO Res Res TI Jud Jud Res Res Com Jud Jud IR IR Com Res Res 1997 1997 1997 1997 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 April 10 June 3 Oct. 21 Nov. 4 Nov. 13 Mar. 18 Mar. 23 April 1 May 19 June 25 July 21 July 22 July 24 July 27 H.R. 3687 H.R. 4151 H.R. 4337 H.R. 1274 H.R. 1756 H.R. 2675 H.R. 2807 H.R. 3055 H.R. 3494 H.R. 3528 H.R. 3903 H.R. 4293 H.R. 4309 H.R. 4326 ...... Institute of Standards and Technology for fiscal years 1998 and 1999, for other purposes States Code, to require the development and implementation by the Secretary of Treasury of a national money laundering and related financial crimes strategy to combat money laundering and related finan- cial crimes, and for other purposes agement submit proposed legislation under which group universal life insurance and group variable universal life insurance would be available under chapter 87 of title 5, United States Code, and for other pur- poses tion Act of 1994 to prohibit the sale, im- portation, and exportation of products la- beled as containing substances derived from rhinoceros or tiger Tribe on the Tamiami Indian Reservation to be consistent with the purposes of Everglades National Park, and for other purposes respect to violent sex crimes against chil- dren, and for other purposes respect to the use of alternative dispute res- olution processes in United States district courts, and for other purposes under a water reclamation project contract for the Canadian River Project, Texas near Gustavus, Alaska, and for other pur- poses States Code, relating to identity fraud, and for other purposes for disadvantaged individuals from North- ern Ireland and the Republic of port for victims of torture certain Federal lands located within or adja- cent to the Rogue River National Forest and to clarify the authority of Bureau Land Management to sell and exchange other Federal lands in Oregon provide financial assistance to the State of Maryland for a pilot program to develop measures to eradicate or control nutria and restore marshland damaged by nutria To authorize appropriations for the National To amend chapter 53 of title 31, United To require that the Office of Personnel Man- To amend the Rhinoceros and Tiger Conserva- To deem the activities of Miccosukee To amend title 18, United States Code, with To amend title 28, United States Code, with To authorize prepayment of amounts due To provide for an exchange of lands located To amend chapter 47 of title 18, United To establish a cultural and training program To provide a comprehensive program of sup- To transfer administrative jurisdiction over To authorize the Secretary of Interior to D46 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 325 326 327 328 329 330 332 333 335 323 324 331 334 No. 105– Public Law 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 proved Date ap- Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 30, Oct. 31, Oct. 31, Oct. 31, Oct. 30, Oct. 30, Oct. 31, Oct. 31, 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Senate July 11 Oct. 2 Oct. 2 Sept. 11 Oct. 2 Sept. 17 June 12 Oct. 7 Oct. 9 Oct. 14 Oct. 9 Oct. 7 Oct. 12 1998 1998 1998 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 Date of passage House Oct. 10 Oct. 8 Oct. 10 Oct. 9 Oct. 10 Oct. 9 July 22 Sept. 23 June 24 Oct. 8 Oct. 7 Sept. 9 Sept. 28 Senate S 7317 S 6306 Record Page of passage in Congressional House H 5544 37 264 311 285 330 331 105– Senate ...... 496 194 677 598 177 Report No. 105– House ...... 1997 1998 1998 1998 1998 1998 1998 Senate ...... June 26 July 27 Sept. 8 July 31 Sept. 14 July 16 Sept. 14 Date Reported 1998 1997 1997 1998 1998 House ...... April 28 July 21 July 14 Aug. 5 June 24 Senate ENR ENR ENR EPW ENR Jud LHR ENR Committee House IR Com Res Res Res Jud BFS EEO Res EEO Res 1998 1998 1997 1997 1997 1998 1998 1998 1997 1997 1997 1997 1998 Date intro- duced Oct. 1 Oct. 2 Jan. 29 June 12 Oct. 29 May 20 May 21 June 18 Feb. 11 June 10 June 19 July 31 May 12 Bill No. (H.R. 1661) H.R. 4660 S. 890 S. 2106 H.R. 678 H.R. 4679 S. 231 S. 1333 S. 2094 S. 2193 H.R. 1853 H.R. 2000 H.R. 2327 H.R. 3830 ...... Title . . . . thorities Act of 1956 to provide rewards for information leading to the arrest or convic- tion of any individual for the commission an act, or conspiracy to of international terrorism, narcotics related offenses, or for serious violations of international humani- tarian law relating to the Former Yugo- slavia metic Act to clarify the circumstances in which a substance is considered to be pes- ticide chemical for purposes of such Act, and for other purposes search Institute in the State of New Mexico, and for other purposes in Dutch John, Utah, to assist the local government in the interim delivery of basic services to the Dutch John community, and for other purposes Fund Act of 1965 to allow national park units that cannot charge an entrance or ad- mission fee to retain other fees and charges Act of 1978 to enable the Secretary Interior to more effectively use the proceeds of sales certain items Park, Utah, to include portions of certain drainages that are under the jurisdiction of the Bureau of Land Management, and to in- clude a portion of Fish Seep Draw owned by the State of Utah, and for other purposes mark Law Treaty mint coins in commemoration of the sesqui- centennial of the birth Thomas Alva Edi- son, to redesign the half dollar circulating coin for 1997 to commemorate Thomas Edison, and for other purposes Applied Technology Education Act ment Act to make certain clarifications the land bank protection provisions, and for other purposes from the child labor provisions of Fair Labor Standards Act of 1938 for minors be- tween 16 and 18 years of age who engage in the operation of automobiles and trucks within the State of Utah To amend the State Department Basic Au- To amend the Federal Food, Drug, and Cos- To establish the National Cave and Karst Re- To dispose of certain Federal properties located To amend the Land and Water Conservation To amend the Fish and Wildlife Improvement To expand the boundaries of Arches National To implement the provisions of Trade- To require the Secretary of Treasury to To amend the Carl D. Perkins Vocational and To amend the Alaska Native Claims Settle- To provide for a change in the exemption To provide for the exchange of certain lands January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D47 337 339 341 342 343 344 346 347 338 340 345 348 349 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 336 Oct. 31, Oct. 31, Oct. 31, Nov. 2, Nov. 2, Nov. 2, Nov. 2, Nov. 2, Oct. 31, Oct. 31, Nov. 2, Nov. 2, Nov. 2, 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Oct. 31, Oct. 14 Oct. 5 Oct. 7 Oct. 7 Oct. 7 Oct. 9 Oct. 5 Oct. 6 Oct. 7 Oct. 12 Oct. 8 July 31 Oct. 1 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 July 20 Oct. 6 Oct. 8 Oct. 10 Oct. 10 Oct. 10 Oct. 10 Oct. 9 Oct. 9 Oct. 5 Oct. 13 Oct. 10 Oct. 9 Oct. 10 243 340 396 404 405 384 354 ...... 633 700 ...... 1998 1998 1998 1998 1998 1998 1998 ...... Sept. 21 Sept. 25 Sept. 25 Sept. 25 Oct. 6 Sept. 28 July 30 1998 1998 ...... July 20 Sept. 9 LHR ENR ENR ENR ENR ENR EPW Jud EEO EEO GRO IR Com Res Res Res Res Res Jud GRO 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 May 14 July 16 Sept. 29 July 16 Mar. 6 July 10 June 26 June 26 July 31 Aug. 31 Sept. 21 Oct. 6 June 10 Oct. 1 (S. 2286) H.R. 4259 H.R. 4655 S. 2413 H.R. 3874 S. 1021 S. 1722 S. 2285 S. 2240 S. 2246 S. 2427 S. 2505 S. 2561 S.J. Res. 51 S.J. Res. 58 ...... make improvements to the special supple- mental nutrition program for women, in- fants, and children to extend the au- thority of that program through fiscal year 2003 and the Southwestern Indian Polytechnic Institute each to conduct a demonstration project to test the feasibility and desirabil- ity of new personnel management policies and procedures, for other purposes to democracy in Iraq vide that consideration may not be denied to preference eligibles applying for certain positions in the competitive service, and for other purposes revise and extend certain programs with re- spect to women’s health research and pre- vention activities at the National Institutes of Health and the Centers for Disease Con- trol and Prevention 150th Anniversary of the Seneca Falls Con- vention, to further protect sites of impor- tance in the historic efforts to secure equal rights for women Park in the Commonwealth of Massachu- setts, and for other purposes erick Law Olmsted National Historic Site, in the Commonwealth of Massachusetts, by modifying the boundary and for other pur- poses Park tract in Apache-Sitgreaves National Forest in the State of Arizona unless conveyance is made to the town of Pinetop- Lakeside or authorized by Act of Congress Lands Management Act of 1996 to extend the legislative authority for Black Patri- ots Foundation to establish a commemora- tive work vey title to the Tunnison Lab Hagerman Field Station in Gooding County, Idaho, to the University of Idaho respect to furnishing and using consumer reports for employment purposes mac Highlands Airport Authority Compact entered into between the States of Maryland and West Virginia tors General since their creation in 1978 preventing and detecting waste, fraud, abuse, and mismanagement, in promot- ing economy, efficiency, and effectiveness in the Federal Government To amend the Child Nutrition Act of 1966 to To allow Haskell Indian Nations University To establish a program to support transition To amend title 5, United States Code, to pro- To amend the Public Health Service Act to To establish a commission, in honor of the To establish the Adams National Historical To amend the Act which established Fred- Prohibiting the conveyance of Woodland Lake To amend the Omnibus Parks and Public To direct the Secretary of Interior to con- To amend the Fair Credit Reporting Act with Granting the consent of Congress to Poto- Recognizing the accomplishments of Inspec- D48 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 350 351 352 353 356 357 358 361 362 363 354 355 359 360 No. 105– Public Law 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 proved Date ap- Nov. 3, Nov. 3, Nov. 3, Nov. 3, Nov. 6, Nov. 10, Nov. 10, Nov. 10, Nov. 10, Nov. 10, Nov. 3, Nov. 6, Nov. 10, Nov. 10, 1998 1998 1998 1998 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 Senate Oct. 21 June 25 Oct. 7 May 13 Oct. 2 Oct. 20 Oct. 14 Sept. 29 June 10 Oct. 2 Oct. 8 Oct. 14 Oct. 20 Oct. 21 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Date of passage House Oct. 20 Oct. 12 Oct. 12 July 22 Oct. 8 Aug. 3 May 12 Oct. 9 Oct. 13 Oct. 10 Oct. 12 Oct. 10 Oct. 14 Oct. 15 Senate S 4815 S 10183 S 6122 Record Page of passage in Congressional House H 3040 20 131 369 182 307 187 328 105– Senate ...... 640 629 528 Report No. 105– House ...... 1997 1998 1998 1998 1998 1997 1998 1998 Senate ...... Nov. 3 Sept. 25 May 4 Oct. 1 Sept. 8 May 21 May 11 Sept. 14 Date Reported 1998 1998 1998 House ...... July 21 July 16 May 12 Senate ENR ENR BHUA Jud ENR Jud IA GA ENR Committee House Res Com Jud Res Res Jud Com Jud Res Agr Jud Res EEO GRO Res 1998 1997 1997 1997 1998 1998 1998 1998 1998 1998 1998 1997 1997 1998 Date intro- duced Oct. 20 April 9 May 14 Oct. 7 Sept. 28 May 20 June 25 April 1 April 23 Aug. 6 Oct. 13 Mar. 18 Nov. 4 Mar. 5 Bill No. (H.R. 1689) S. 1260 H.R. 3633 H.R. 4501 H.J. Res. 138 S. 538 S. 744 S. 2524 H.R. 3910 S. 2232 H.R. 3723 H.R. 4821 S. 459 S. 1364 S. 1718 ...... Title . . . . first session of the One Hundred Sixth Con- gress convey certain facilities of the Minidoka project to the Burley Irrigation District, and for other purposes Water Users District Rural System and authorize financial assistance to the Fall River Water Users District, a non-profit corporation, in the planning and construc- tion of the water supply system, and for other purposes Securities Exchange Act of 1934 to limit the conduct of securities class actions under State law, and for other purposes lated to Patriotic and National Observances, Ceremonies, and Organizations to im- prove the United States Code age Area School National Historic Site in the State of Arkansas, and for other purposes and Export Act to place limitations on con- trolled substances brought into the United States from Mexico and expenses of the Patent Trademark Office, and for other purposes the Secretary of Interior to conduct a study to improve the access for persons with disabilities to outdoor recreational opportu- nities made available to the public essing period for diversity applicants whose visa processing was suspended during fiscal year 1998 due to embassy bombings of 1974 to extend certain authorizations, and for other purposes reports Site Establishment Act of 1990 to authorize the acquisition of additional acreage for historic site to permit the development of visitor and administrative facilities to authorize the appropriation of additional amounts for the acquisition of real and per- sonal property, and for other purposes Appointing the day for convening of To authorize the Secretary of Interior to To authorize the construction of Fall River To amend the Securities Act of 1933 and To clarify without substantive change laws re- To authorize the Automobile National Herit- To establish the Little Rock Central High To amend the Controlled Substances Import To authorize funds for the payment of salaries To require the Secretary of Agriculture and To extend into fiscal year 1999 the visa proc- To amend the Native American Programs Act To eliminate unnecessary and wasteful Federal To amend the Weir Farm National Historic January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D49 364 365 366 367 368 369 372 375 376 370 371 373 374 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Nov. 10, Nov. 10, Nov. 10, Nov. 10, Nov. 11, Nov. 12, Nov. 12, Nov. 12, Nov. 12, Nov. 12, Nov. 12, Nov. 12, Nov. 12, 1998 1998 1998 1998 1998 1998 1998 1997 1998 1998 1998 1998 1998 Oct. 7 Oct. 2 July 31 Oct. 9 Sept. 30 Oct. 21 Oct. 13 Nov. 8 July 17 Oct. 20 Oct. 21 Oct. 21 Oct. 21 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 Oct. 15 Oct. 15 Oct. 9 Oct. 15 Aug. 3 May 19 July 15 Oct. 14 Oct. 20 Aug. 3 Oct. 8 Sept. 14 July 14 S 12206 H 3392 400 324 277 408 341 178 ...... 802 627 465 621 665 ...... 1998 1998 1998 1998 1998 1997 29 1998 ...... Sept. 25 Sept. 9 Sept. 25 Sept. 21 Oct. 7 Nov. 4 April 1998 1998 1998 1998 1998 1998 Oct. 8 July 15 Mar. 25 May 7 July 31 July 14 ENR ENR ENR LHR Jud FR Jud FR ENR Res Res Com Res VA Jud Com WM Jud NS Res TI IR Jud IR Res 1998 1998 1998 1998 1998 1997 1997 1997 1998 1998 1998 1997 1997 June 26 July 8 July 30 Sept. 18 June 23 Mar. 11 June 25 July 25 Feb. 25 June 18 June 25 May 16 July 31 (S. 2273) (H.R. 4353) S. 2241 S. 2375 H.R. 4083 H.R. 4164 S. 1132 S. 2272 S. 2500 H.R. 4110 H.R. 1023 H.R. 2070 H.R. 2263 H.R. 3267 S. 759 ...... merly occupied by the Franklin D. Roo- sevelt family at Hyde Park, New York, and for other purposes Ranch National Historic Site in the State of Montana 1934 and the Foreign Corrupt Practices Act of 1977, to strengthen prohibitions on international bribery and other corrupt practices, and for other purposes entered into by surface patent holders with respect to coalbed methane gas of compensation paid to veterans with serv- ice-connected disabilities, to make various improvements in education, housing, and cemetery programs of the Department Veterans Affairs, and for other purposes regard to individuals with blood-clotting disorders, such as hemophilia, who con- tracted human immunodeficiency virus due to contaminated blood products, and for other purposes provide for the mandatory testing seri- ous transmissible diseases of incarcerated persons whose bodily fluids come into con- tact with corrections personnel and notice to those personnel of the results tests, and for other purposes award the congressional Medal of Honor posthumously to Theodore Roosevelt for his gallant and heroic actions in the attack on San Juan Heights, Cuba, during the Span- ish-American War through the Bureau of Reclamation, to con- duct a feasibility study and construct project to reclaim the Salton Sea and Archives the USIA television program ‘‘Window on America’’ respect to the enforcement of child custody and visitation orders thorities Act of 1956 to require the Sec- retary of State to submit an annual report to Congress concerning diplomatic immu- nity National Monument to include the lands within the headwaters of Upper Alamo Watershed which drain into the Monument and which are not currently within the ju- risdiction of a Federal land management agency, to authorize purchase or donation of those lands, and for other purposes To provide for the acquisition of lands for- To amend the boundaries of Grant-Kohrs To amend the Securities Exchange Act of To protect the sanctity of contracts and leases To provide a cost-of-living adjustment in rates To provide for compassionate payments with To amend title 18, United States Code, to To authorize and request the President to To direct the Secretary of Interior, acting To make available to the Ukrainian Museum To amend title 28, United States Code, with To amend the State Department Basic Au- To modify the boundaries of Bandelier D50 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 378 379 380 382 383 385 386 387 388 389 390 377 381 384 No. 105– Public Law 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 proved Date ap- Nov. 12, Nov. 12, Nov. 12, Nov. 13, Nov. 13, Nov. 13, Nov. 13, Nov. 13, Nov. 13, Nov. 13, Nov. 13, Nov. 12, Nov. 12, Nov. 13, 1998 1998 1998 1998 1998 1998 1997 1998 1997 1998 1998 1998 1998 1998 Senate Oct. 2 Oct. 14 Oct. 2 Oct. 20 Oct. 12 Oct. 20 Nov. 13 Oct. 9 June 27 Sept. 22 May 15 July 30 July 31 Oct. 21 1998 1998 1998 1998 1997 1998 1998 1998 1998 1998 1998 1998 1998 1998 Date of passage House Oct. 10 Oct. 15 Oct. 14 Oct. 5 Oct. 21 Sept. 28 Oct. 9 Oct. 10 Sept. 28 Oct. 14 Oct. 10 Oct. 15 Oct. 15 Oct. 12 Senate S 12711 S 6788 S 4931 Record Page of passage in Congressional House H 8903 67 25 303 313 379 294 105– Senate ...... 755 236 681 727 Report No. 105– House ...... 1998 1998 1998 1998 1997 1997 1998 1997 1998 1998 Senate ...... July 16 Sept. 8 Sept. 8 July 16 Sept. 2 Nov. 6 Oct. 7 June 11 Aug. 25 May 7 Date Reported 1998 1997 1998 1998 House ...... Sept. 28 July 31 Aug. 6 Sept. 17 Senate Jud ENR Agr ENR Jud CST Jud IA ENR GA Jud Committee House Jud Res Res Jud IR GRO TI Res IR Agr Jud Com Jud 1997 1997 1998 1998 1997 1997 1997 1998 1998 1997 1997 1997 1997 1997 Date intro- duced July 31 Nov. 7 Mar. 10 June 2 July 21 Feb. 6 July 21 Mar. 12 July 21 Jan. 22 Mar. 4 Mar. 10 Nov. 7 Nov. 12 (S. 880) Bill No. (H.R. 4017) (H.R. 3046) S. 1134 S. 1733 H.R. 2204 S. 417 S. 1408 S. 2129 S.J. Res. 35 H.R. 633 H.R. 3461 H.R. 4283 S. 191 S. 391 S. 1397 S. 1525 ...... Title ...... to an interstate forest fire protection com- pact National Historic Site, and for other pur- poses quire food stamp State agencies to take cer- tain actions to ensure that food stamp cou- pons are not issued for deceased individuals, to require the Secretary of Agriculture conduct a study of options for the design, development, implementation, and oper- ation of a national database to track partici- pation in Federal means-tested public assist- ance programs, and for other purposes certain land contiguous to Hawaii Volca- noes National Park cific Northwest Emergency Management Arrangement provide that the annuities of certain special agents and security personnel of the Depart- ment of State be computed in the same way as applies generally with respect to Federal law enforcement officers, and for other pur- poses 1998 and 1999 for the Coast Guard, for other purposes agreement between the United States and the Republic of Poland cultural and rural development in sub-Saha- ran Africa, and for other purposes appropriated to pay judgment in favor of the Mississippi Sioux Indians, and for other purposes the Energy Policy and Conservation Act through September 30, 2002 memoration of the centennial powered flight and the achievements of Wright brothers cation to the dependents of Federal, State, and local public safety officers who are killed or permanently and totally disabled as the result of a traumatic injury sustained in the line of duty Granting the consent and approval of Congress To establish the Lower East Side Tenement To amend the Food Stamp Act of 1977 to re- To eliminate restrictions on the acquisition of Granting the consent of Congress to Pa- To amend the Foreign Service Act of 1980 to To authorize appropriations for fiscal years To approve a governing international fishery To support sustainable and broad-based agri- To throttle criminal use of guns To provide for the disposition of certain funds To extend energy conservation programs under To establish a commission to assist in com- To provide financial assistance for higher edu- January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D51 391 392 393 394 1998 1998 1998 1998 Nov. 13, Nov. 13, Nov. 13, Nov. 13, Infrastructure 1998 1998 1998 1998 June 11 July 31 Oct. 12 Oct. 5 1998 1998 1998 1998 Res ...... Resources Sci ...... Science SB ...... Small Business TI ...... Transportation and VA ...... Veterans’ Affairs WM ...... Ways and Means Oct. 13 Oct. 13 Oct. 13 Oct. 9 S 6268 Resources Administration 202 220 332 334 767 Int ...... Intelligence IR ...... International Relations Jud ...... Judiciary LHR ...... Labor and Human NS ...... National Security R ...... Rules RAdm .... Rules and ...... 1998 1998 1998 1998 June 5 June 23 Sept. 14 Sept. 15 1998 ...... Oct. 2 Public Works and Oversight ENR LHR EPW LHR EPW ...... Environment and Fin ...... Finance FR ...... Foreign Relations GA ...... Governmental Affairs HO ...... House Oversight GRO ...... Government Reform IA ...... Indian Affairs Res TABLE OF COMMITTEE ABBREVIATIONS 1998 1998 1998 1998 Feb. 27 Mar. 12 July 28 Sept. 2 Transportation Educational Opportunities Resources S. 1754 S. 1693 S. 2364 S. 2432 . Bud ...... Budget Com ...... Commerce CST ...... Commerce, Science, and EEO ...... Economic and ENR ...... Energy and Natural and Forestry Services Urban Affairs .—The bill in parentheses is a companion measure. . . . OTE creased accountability for certain National Park Service programs, and for other pur- poses consolidate and reauthorize health profes- sions and minority disadvantaged health professions and disadvantaged education programs, and for other purposes authorized by the Public Works and Eco- nomic Development Act of 1965 and the Appalachian Regional Development Act of 1965 dress the assistive technology needs of indi- viduals with disabilities, and for other pur- poses N To provide for improved management and in- To amend the Public Health Service Act to To reauthorize and make reforms to programs To support programs of grants to States ad- Agr ...... Agriculture ANF ...... Agriculture, Nutrition, App ...... Appropriations AS ...... Armed Services BFS ...... Banking and Financial BHUA .... Banking, Housing, and Tuesday, January 19, 1999 Daily Digest

HIGHLIGHTS See Re´sume´ of Congressional Activity for the One Hundred Fifth Con- gress. Senate and House met in Joint Session and received the President’s State of the Union Message. Senate Messages From the President: Senate received the Chamber Action following message from the President of the United Routine Proceedings, pages S303–S725 States: Measures Introduced: Two hundred forty-nine bills Transmitting the State of the Union Address; or- and fifteen resolutions were introduced, as follows: S. dered to lie on the table. (PM–1) Pages S330±35 2–250, S.J. Res. 1–7, S. Con. Res. 1, and S. Res. Nominations Received: Senate received the follow- 19–25. Pages S337±45 ing nominations: Measures Passed: Cheryl Shavers, of California, to be Under Sec- retary of Commerce for Technology. Committee Renamed: Senate agreed to S. Res. Captain Evelyn J. Fields, NOAA for appointment 20, to rename the Committee on Labor and Human to the grade of Rear Admiral (O–8), while serving Resources the Committee on Health, Education, in a position of importance and responsibility as Di- Labor, and Pensions. Page S477 rector, Office of NOAA Corp Operations, National Congratulating University of Tennessee Volun- Oceanic and Atmospheric Administration, under the teers: Senate agreed to S. Res. 21, congratulating the provisions of Title 33, United States Code, Section University of Tennessee Volunteers football team on 853u. winning the 1998 National Collegiate Athletic Asso- Routine lists in the Foreign Service, Public Health ciation Division I-A football championship. Service. Pages S495±46 Pages S477±78 Messages From the President: Pages S330±35 Impeachment of President Clinton: Senate, sitting Communications: Pages S335±37 as a Court of Impeachment, resumed consideration of the articles of impeachment against William Jeffer- Statements on Introduced Bills: son Clinton, President of the United States, taking Pages S345±S476, S497±S714 the following action: Pages S483±95 Additional Statements: Pages S720±25 White House Counsel Presents President’s Case: Adjournment: Senate convened at 9:30 a.m., and Pursuant to S. Res. 16, agreed to on January 8, adjourned at 10:31 p.m., until 11 a.m., on Wednes- 1999, the President’s counsel made their presen- day, January 20, 1999. (For Senate’s program, see tation against the articles of impeachment. the remarks of the Acting Majority Leader in today’s Pages S484±95 Record on page S483.) Senate will continue to sit as a Court of Impeach- ment on Wednesday, January 20, 1999. Committee Meetings Joint Session—Escort Committee: The President of the Senate was authorized to appoint a committee (Committees not listed did not meet) on the part of the Senate to join with a like commit- tee on the part of the House of Representatives to SOCIAL SECURITY REFORM escort the President of the United States to the Committee on the Budget: Committee held hearings on House Chamber for a Joint Session. Page S478 Social Security reform issues, including treatment of D52 January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D53 the postwar generation, privatization, and Old Age, Hampshire; Don K. Kebodeaux, First Financial Cap- Survivors, and Disability Insurance program, receiv- ital Corporation, Houston, Texas; and Henry J. ing testimony from Jagadeesh Gokhale, Federal Re- Aaron and Gary Burtless, both of the Brookings In- serve Bank of Cleveland, Cleveland, Ohio; Andrew stitution, Washington, D.C. A. Samwick, Dartmouth College, Hanover, New Hearings continue on Friday, January 22. h House of Representatives debate’’ except that on Tuesdays after May 4, 1999 Chamber Action the House shall convene for that purpose one hour Bills Introduced: 103 public bills, H.R. 323–425; earlier than the time otherwise established. 4 private bills, H.R. 426–429; and 18 resolutions, Pages H247±48 H.J. Res. 20–21, H. Con. Res. 11–18, and H. Res. Adjournment Resolution: The House agreed to H. 21–28, were introduced. Pages H267±72 Con. Res. 11, providing that when the House ad- Reports Filed: The following reports were filed: journs today, it stand adjourned until 12:30 p.m. on Filed on January 2: Activities Report of the Com- Tuesday, February 2, 1999. Page H248 mittee on Small Business. 105th Congress (H. Rept. Suspension of the Rules: Agreed by unanimous 105–849); consent that it be in order at any time on Wednes- Filed on January 2: Activities Report of the Com- day, February 3, 1999, for the Speaker to entertain mittee on House Oversight, 105th Congress (H. motions that the House suspend the rules, provided Rept. 105–850); that the Speaker or his designee consult with the Filed on January 3: Report of the Select Commit- Minority Leader or his designee on the designation tee on U.S. National Security and Military/Commer- of any matter for consideration pursuant to this re- cial Concerns with the People’s Republic of China quest. Page H248 (H. Rept. 105–851); and H.R. 68, to amend section 20 of the Small Busi- Select Committee on U.S. National Security and ness Act and make technical corrections in Title III Military/Commercial Concerns with the People’s of the Small Business Investment Act (H. Rept. Republic of China: The Chair reappoints the fol- 106–1). Page H267 lowing members to the Select Committee on U.S. National Security and Military/Commercial Concerns Members Sworn: Representatives Gallegly, Hoyer, with the People’s Republic of China: Representatives Mollohan, and Stark presented themselves in the Cox of California, Goss, Bereuter, Hansen, Weldon well and were administered the oath of office by the of Pennsylvania, Dicks, Spratt, Roybal-Allard, and Speaker. Page H247 Scott. Page H248 House Officers: Pursuant to H. Res. 1, Mr. Wilson Committee Election: Agreed by unanimous consent S. Livingood, Sergeant at Arms, presented himself in that any references to the Committee on Govern- the well and was administered the oath of office by ment Reform and Oversight and the Committee on the Speaker. Page H247 National Security in H. Res. 7 adopted on January Oath of Office: Pursuant to H. Res. 12, Represent- 6, 1999, be changed to the Committee on Govern- ative George Miller was administered the oath of of- ment Reform and the Committee on Armed Services, fice on Jan. 7, 1999 by Judge Ellen Sickles James, respectively. And, that the election of Mr. Dixon to Retired. Page H247 the Permanent Select Committee on Intelligence by Oath of Office: Pursuant to H. Res. 13, Represent- the adoption of H. Res. 7 be vacated. Page H248 ative Sam Farr was administered the oath of office Board of Regents of the Smithsonian: The Chair on Jan 8, 1999 by Marc B. Poche, Associate Justice, appointed the following to the Board of Regents of Court of Appeal. Page H247 the Smithsonian Institution: Representatives Regula Morning Hour: Agreed by unanimous consent that and Sam Johnson of Texas. Page H248 on legislative days of Monday and Tuesday during Official Advisors Re Trade Agreements: The the first session of the 106th Congress that the Chair appointed the following to be accredited by House shall convene 90 minutes earlier than the the President as official advisors to the United States time otherwise established by order of the House delegations to international conferences, meetings, solely for the purpose of conducting ‘‘morning-hour and negotiation sessions relating to trade agreements D54 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999 during the first session of the 106th Congress: Rep- Committee Election: Agreed to H. Res. 23, elect- resentatives Archer, Crane, Thomas, Rangel, and ing Representative Hill to the Committee on Agri- Levin. Page H248 culture; Representative Larson to the Committee on Permanent Select Committee on Intelligence: Armed Services; Representatives Pomeroy, Delahunt, The Chair appointed the following members to the Meeks of New York, Lee, Crowley, and Hoeffel to Permanent Select Committee on Intelligence: Rep- the Committee on International Relations; Rep- resentatives Lewis of California, McCollum, Castle, resentatives Weiner and Capuano to the Committee on Science; and Representatives Baird and Boehlert, Bass, Gibbons, LaHood, and Wilson. Schakowsky to the Committee on Small Business. Page H248 Pages H257±58 Clerk Designation: Read a letter from the Clerk Resignations and Appointments: Agreed that not- wherein he designated Mr. Daniel F. C. Crowley, withstanding any adjournment of the House until Deputy Clerk, to sign papers and do all other acts Tuesday, February 2, 1999, the Speaker, Majority under the name of the Clerk in case of his temporary Leader, and Minority Leader be authorized to accept absence or disability. Page H248 resignations and to make appointments authorized Communication from the Committee on Ways by law or by the House. Page H258 and Means: Read a letter from the Chairman of the State of the Union Address: President Clinton de- Committee on Ways and Means wherein he for- livered his State of the Union address before a joint warded the Committee’s recommendations for certain session of Congress. He was escorted into the House designations required by law for the 106th Congress: Chamber by a committee comprised of Representa- The Committee designated the following members tives Armey, Watts of Oklahoma, Fowler, Dickey, to serve on the Joint Committee on Taxation: Rep- Hutchinson, Gephardt, Bonior, Frost, Menendez, resentatives Archer, Crane, Thomas, Rangel, and Berry, Snyder, and Senators Lott, Nickles, Thur- Stark. The Committee recommended that the follow- mond, Stevens, Domenici, Warner, Daschle, Reid, ing members serve as official advisors for inter- Mikulski, Breaux, Kerry, Dorgan, Torricelli, Murray, national conference meetings and negotiation sessions Rockefeller, and Durbin. The President’s message on trade agreements: Representatives Archer, Crane, was referred to the Committee of the Whole House Thomas, Rangel, and Levin. Page H249 on the State of the Union and ordered printed as a Committee Resignation: Read a letter from Rep- House Document (H. Doc. 106–1). Pages H258±64 resentative Cox of California wherein he requested a Senate Messages: Messages delivered to the Clerk leave of absence from the Committee on Government on Jan. 8, 1999 and Jan. 15, 1999 from the Senate Reform. Without objection, the resignation was ac- appear on pages H248–49. cepted. Page H249 Quorum Calls—Votes: No recorded votes or Recess: The House recessed at 2:50 and reconvened quorum calls developed during the proceedings of at 8:41 p.m. Page H257 the House today. Committee Resignation: Read a letter from Rep- Adjournment: The House met at 2:00 p.m. and resentative Miller of Florida wherein he resigned pursuant to H. Con. Res. 11, the House adjourned from the Committee on the Budget. Without objec- at 10:34 p.m. until 12:30 p.m. on Tuesday, Feb- tion, the resignation was accepted. Page H257 ruary 2 for morning hour debate or, under the pre- Committee Election: Agreed to H. Res. 21, elect- vious order of the House, until 2 p.m. tomorrow, ing Representatives Collins and Wamp to the Com- unless the House sooner receives a message from the Senate transmitting its concurrence in H. Con. Res. mittee on the Budget. Page H257 11. Committee Election: Agreed to H. Res. 22, elect- ing Representatives Hefley, Knollenberg, Portman, and Camp to the Committee on Standards of Official Committee Meetings Conduct. Page H257 COMMITTEE ORGANIZATION Meeting Hour: Agreed by unanimous consent that when the House adjourns today, it stand adjourned Committee on International Relations: Met for organiza- until 2 p.m. tomorrow, unless the House receives a tional purposes. message from the Senate transmitting its concurrence in H. Con. Res. 11, in which case the House shall COMMITTEE ORGANIZATION stand adjourned pursuant to that concurrent resolu- Committee on Resources: Met for organizational pur- tion. Page H257 poses. January 19, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D55 COMMITTEE MEETINGS FOR Committee on Governmental Affairs: business meeting to WEDNESDAY, JANUARY 20, 1999 consider pending committee business, 10 a.m., SD–342. Committee on Health, Education, Labor, and Pensions: busi- Senate ness meeting to consider its rules of procedure for the (Committee meetings are open unless otherwise indicated) 106th Congress and its subcommittee membership, 9:30 a.m., SD–430. Committee on Appropriations: to resume oversight hear- Full Committee, to hold hearings on group health plan ings to examine the status of government and industry ef- comparative information and coverage determination forts to prepare for Year 2000 computer compliance, 9:30 standards, 10 a.m., SD–430. a.m., SD–192. Committee on Banking, Housing, and Urban Affairs: Sub- House committee on International Finance, to hold hearings on Committee on Agriculture, to meet for organizational pur- proposed legislation authorizing funds for programs of the poses, 1:30 p.m., 1300 Longworth. Export Administration Act, 10 a.m., SD–538. Committee on Armed Services, to meet for organizational Committee on the Budget: to hold hearings on Federal tax purposes, 10 a.m., and to hold a hearing on the state of policy in the Year 2000, 10 a.m., SD–608. U.S. military forces, 1 p.m., 2118 Rayburn. Committee on Commerce, Science, and Transportation: busi- Committee on Banking and Financial Services, to meet for ness meeting to consider pending committee business; to organizational purposes, 2 p.m., 2128 Rayburn. be followed by a hearing on proposed legislation authoriz- Committee on the Budget, to meet for organizational pur- ing funds for the Federal Aviation Administration, De- poses, 4 p.m., 210 Cannon. partment of Transportation, 9:45 a.m., SR–253. Committee on Government Reform, hearing on Oversight of Committee on Environment and Public Works: business the Year 2000 Problem: Status of Federal, State, Local meeting to consider pending committee business and its and Foreign Governments, 11:15 a.m., 2154 Rayburn. rules of procedures for 106th Congress, 9:30 a.m., Committee on International Relations, to hold a hearing on SD–406. Human Rights in China, 10 a.m., 2172 Rayburn. Committee on Finance: to hold hearings on the nomina- Committee on Ways and Means, to hold a hearing on the tion of Susan G. Esserman, of Maryland, to be Deputy Outlook for the State of the U.S. Economy in 1999, 10 United States Trade Representative, with the rank of a.m., 1100 Longworth. Ambassador, and other pending nominations, 10 a.m., Subcommittee on Social Security, to meet for organiza- SD–215. tional purposes, 1:30 p.m., B–318 Rayburn. D56 CONGRESSIONAL RECORD — DAILY DIGEST January 19, 1999

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 11 a.m., Wednesday, January 20 12:30 p.m., Tuesday, February 2

Senate Chamber House Chamber Program for Wednesday: After the transaction of any Program for Tuesday, February 2: To be announced. morning business (not to extend beyond 1 p.m.), Senate will continue to sit as a Court of Impeachment to con- sider the articles of impeachment against President Clin- ton.

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