E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, SECOND SESSION

Vol. 142 WASHINGTON, WEDNESDAY, SEPTEMBER 11, 1996 No. 124 Senate

The Senate met at 11 a.m. and was SCHEDULE Chemical Weapons Convention, because called to order by the President pro Mr. LOTT. Mr. President, this morn- it appears that some of the information tempore [Mr. THURMOND]. ing, the Senate will resume consider- Senators really need to have will not ation of H.R. 3756, the Treasury-Postal be declassified. If it is not declassified PRAYER appropriations bill. I understand there by noon tomorrow, we will give Mem- are two pending amendments, and I bers, I believe 4 hours notice is re- The Chaplain, Dr. Lloyd John quired under the rules. We will convene Ogilvie, offered the following prayer: hope we may dispose of those amend- ments in short order and continue to in the Old Senate Chamber, and then O God, our Father, this is a new day. make progress on the bill. we will go to votes right after that. Banish all the gloom and darkness of It is my intention to complete action Again, I urge all Senators to come to worry and fear. Set us free to praise on the Treasury-Postal appropriations the floor if they have amendments. The and worship You in joy and gladness. bill this evening. That will certainly smart thing to do would be to not offer May we neither gloat over yesterday’s take cooperation—it always does— a lot more amendments. Let’s just go successes nor be grim over yesterday’s across the aisles. We need to help the ahead and pass the Treasury-Postal ap- defeats. Help us make a fresh start and managers by coming on over and offer- propriations bill and be done with it. give ourselves fully to the challenges ing amendments. Amendments are, in Would that be all right with the chair- and opportunities of this day. fact, needed so that we can be able to man? Grant us a vibrant enthusiasm so complete action at a reasonable hour Mr. SHELBY. That will be fine. that we can accept each responsibility tonight so we can then go tomorrow to Mr. LOTT. So go to third reading as with delight and care for each person the Chemical Weapons Convention. soon as you can. with affirmation. We know that life is If we do not get the Treasury-Postal Mr. SHELBY. In 5 minutes. an accumulation of days lived fully for Service appropriations bill completed Mr. LOTT. I yield the floor. Your glory or wasted on anxious care. this evening, then I am going to have f Fill our minds with Your spirit so that to weigh exactly what we do with re- TREASURY, POSTAL SERVICE, AND we can think creatively; transform our gard to the Chemical Weapons Conven- GENERAL GOVERNMENT APPRO- attitudes so we can reflect Your pa- tion. We made a commitment to do PRIATIONS ACT, 1997 tience and peace; brighten our coun- that. I intend to do that, but in order The PRESIDING OFFICER (Mr. tenance so that we will radiate Your to do that, we are going to have to get BROWN). Under the previous order, the joy; infuse strengths into our bodies so this bill done. We are going to have to that we will have resiliency for the Senate will resume consideration of have some cooperation with that. H.R. 3756, which the clerk will report. pressures of whatever the day will In accordance with the consent bring. The assistant legislative clerk read agreement reached on June 28, I do an- as follows: We look ahead to the decisions we ticipate beginning the consideration of A bill (H.R. 3756) making appropriations will have to make today, and our deep- Executive Calendar No. 12, which is the for the Treasury Department, the United est longing is that we will not miss Chemical Weapons Convention. We States Postal Service, the Executive Office Your best for us or our Nation. We hope to be able to complete that in 1 of the President, and certain Independent dedicate this day to trust You all the day, instead of going all day tomorrow Agencies for the fiscal year ending Septem- way. Through our Lord and Savior. and going over until Friday. Again, ber 30, 1997, and for other purposes. Amen. with cooperation of the Members, we The Senate resumed consideration of would like to see if we can complete the bill. f that tomorrow, because we do have a Pending: Jewish holiday on Friday. We will not Wyden/Kennedy amendment No. 5206 (to RECOGNITION OF THE MAJORITY have any votes after 12 o’clock for sure, committee amendment beginning on page 16, line 16, through page 17, line 2) to prohibit LEADER but if we could complete work on the CWC by tomorrow night, then Members the restriction of certain types of medical The PRESIDENT pro tempore. The will have more time to get to their communications between a health care pro- able majority leader, Senator LOTT, is vider and a patient. homes to celebrate this special date for Dorgan amendment No. 5223 (to committee recognized. our Jewish Members. amendment beginning on page 16, line 16, Mr. LOTT. Thank you very much, We will probably have a 1-hour closed through page 17, line 2) to amend the Inter- Mr. President. session at the end of the debate on the nal Revenue Code of 1986 to end deferral for

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

S10245 S10246 CONGRESSIONAL RECORD — SENATE September 11, 1996 United States shareholders on income of con- that interesting? They are going to feel bad about not paying any taxes in trolled foreign corporations attributable to charge a fee for those who pay their the United States of America?’’ his an- property imported into the United States. credit card bills off in full every swer was, ‘‘That’s what multinational Mr. SHELBY addressed the Chair. month. Why? Because if you are paying corporations are for.’’ The PRESIDING OFFICER. The Sen- off your credit card bill and settling Is that the sort of thing that the Sen- ator from Alabama is recognized. your balance, they are not making ator believes that the U.S. taxpayers, AMENDMENT NO. 5206 money off you. So the result is they basically the taxpayers of the United Mr. SHELBY. Mr. President, I ask for will charge a fee for that. Sound kind States are subsidizing, because they the yeas and nays on the Wyden of like a screwball idea? It does to me. are paying the taxes? If somebody does amendment. Or how about this screwball idea. not pay tax—if I forgive you all of your The PRESIDING OFFICER. Is there Have a provision in America’s Tax taxes and say, ‘‘Senator DORGAN, you objection to the request? Without ob- Code that says to a corporation, we don’t have to pay any taxes at all, jection, it is so ordered. will give you a special little deal. We somebody else is going to pick up the Is there a sufficient second? know that you are here in America. We tax for it, somebody else is going to be There appears to be a sufficient sec- know that you built a plant here. You subsidizing your reduction in tax’’—in ond. hired a bunch of workers. You have this case, what you are describing is a The yeas and nays were ordered. made a product here for 30 years. You situation where not only am I subsidiz- Mr. SHELBY. I suggest the absence make profits here. But we will give you ing the fact that you are not paying of a quorum. a special little deal. If you will simply any taxes, not only am I paying more The PRESIDING OFFICER. The shut your American plant down, fire and you are paying less, but I am pay- clerk will call the roll. all those workers, get rid of all that in ing more and you are paying less and The assistant legislative clerk pro- America, and move the whole system you are moving operations abroad. ceeded to call the roll. to a foreign tax haven, open a new fac- Mr. DORGAN. What I have not men- Mr. SHELBY. Mr. President, I ask tory overseas, hire new foreign work- tioned in discussion, because it is unanimous consent that the order for ers, make exactly the same product slightly different but probably an even the quorum call be rescinded. you were making in America, and then more important discussion, is that 73 The PRESIDING OFFICER. Without ship the product from that foreign tax percent of foreign corporations doing objection, it is so ordered. haven country into America and make business in America pay zero in Fed- your profit that way, we will give you eral income taxes to this country—not PRIVILEGE OF THE FLOOR a little, or not much, they pay zero. Mr. SHELBY. Mr. President, I ask a deal. We will give you a tax break if you will do that. Close your American Mr. President, 73 percent of foreign unanimous consent that privilege of corporations doing business in Amer- the floor be granted to Paul Irving, plant, produce overseas instead, and we will give you a tax break. Sound like a ica—and those names everyone would staff of Treasury, Post Office. understand and recognize instantly; The PRESIDING OFFICER. Is there screwball idea? It is current tax law. I have an amendment that is pending they are the names on the products objection? Without objection, it is so before the Senate that will lose today. people are buying in this country— ordered. We voted on this before, 52–47. I lost a they do hundreds of billions of dollars Mr. SHELBY. I suggest the absence year ago. We are going to vote again of business in this country every year, of a quorum. today, and no doubt I will lose again and 73 percent of them pay zero in The PRESIDING OFFICER. The today. Why? Because anyone standing taxes to our country. clerk will call the roll. in this Chamber feels comfortable A slightly different issue but in the The assistant legislative clerk pro- going home telling their folks who sent same general family of tax problems, ceeded to call the roll. them here that it was ‘‘my priority to in addition to the strainer through Mr. DORGAN. Mr. President, I ask decide to keep a tax provision that which all of this flows and through unanimous consent that the order for says let’s reward people who move which these corporations can come in, the quorum call be rescinded. American jobs overseas’’? No. That is earn billions of dollars and pay zero The PRESIDING OFFICER. Without not why. There is not one person who taxes in our country, in addition to objection, it is so ordered. can find one good reason to have this that, we actually have a provision in AMENDMENT NO. 5223 in current tax law. Not one. this Tax Code that says, by the way, if Mr. DORGAN. Mr. President, I be- I do not stand here asking for 10 rea- you are an American company and you lieve that the amendment which I of- sons why this ought to be repealed. I are having to compete against a for- fered yesterday is the pending business would like to find one sober American eign corporation coming into our coun- before the Senate. Is that correct? who can explain to me one reason why try—what is the solution? Move your The PRESIDING OFFICER. The Sen- this ought to be kept in American tax jobs, leave our country, produce in Sri ator is correct. The pending question is law. At the very least our tax law Lanka, Bangladesh, Malaysia, Singa- the Dorgan amendment No. 5223. ought to be export-neutral with respect pore, produce elsewhere. Hire foreign Mr. DORGAN. Mr. President, it is to jobs. workers. Not only can you get a tax kind of an upside-down world out Mr. KERREY. I wonder if the Senator break, you can get lower wages over there. You look at the news from day will yield? there. You can hire somebody for 14 to day. A few weeks ago we all listened Mr. DORGAN. I am glad to yield. cents an hour, a quarter an hour, 50 to the news and discovered that, if you Mr. KERREY. The Senator and I, I cents an hour, $1 an hour. You do not were roughly 7 feet tall and had bas- guess a month ago, discussed a long ar- have to worry about pumping effluents ketball skills, you could sign a con- ticle that was in the New York Times, into the air, dumping chemicals into tract for $100 million. One 7-foot-2-inch in the business section of the New York the water. You can hire kids and work athlete signed a contract for $115 mil- Times, describing a U.S. corporation, them 14 hours a day. Move your jobs lion to play basketball for 7 years. actually a multinational corporation, and go overseas, our Tax Code says to That would employ, by the way, about described by the operator, with $9 bil- companies, and then ship the product 4,000 elementary school teachers for a lion for the revenue total as reported back here and compete with someone year, that $115 million; but in our econ- in the paper, and $2 billion for net in- who stayed here. omy it is one very good basketball come as reported by the paper. And the I represent a State not unlike the player. Sounds a little confusing to me tax rate was down to 3 or 4 percent. Senator from Nebraska. North Dakota that that represents the value system, One particular transaction that was is slightly smaller in population. I but that is the system. under examination was shipping all the toured a little manufacturing facility This morning in the paper there is an income to the Dutch Antilles so they recently with 55 workers. They are article that says credit card companies would not have to pay any capital wonderful workers who love their jobs. are going to end the free ride. They are gains tax. When the CEO of the com- It is a great little company, struggling going to start charging a fee for those pany, the owner of the company, was and not making a lot of money, but who pay off their credit card bills. Isn’t asked the question, ‘‘Well, don’t you making it in a small community in September 11, 1996 CONGRESSIONAL RECORD — SENATE S10247 North Dakota. They do not have the Mr. KERREY. Will the Senator yield? bate it apparently on the floor of the opportunity to decide, ‘‘I think we will Mr. DORGAN. I am happy to yield to Senate are strategizing how they will move our production, we will move our the Senator. offer something that prevents an up-or- manufacturing to Singapore.’’ They do Mr. KERREY. The opponents are not down vote on this. They will either not have that opportunity. They do not up here to engage in a discussion. offer to table it, or they will offer some have that luxury. They are just work- One of the arguments I have heard other device, and they will try to rico- ing every day, doing the best they can, against the Senator’s amendment is chet the vote because the last thing in trying to make a profit. that it is effectively a tariff. I wonder the world they want to do is deal with Assume that some other company if the Senator could pretend I am an this. makes the same products that compete opponent of the amendment and talk We have organizations in this town with this little company. One of them to the American people a bit about this formed and financed by the largest cor- was an arrowhead on arrows used in issue of whether or not the change in porations in America and the world archery that are sold in stores around Tax Code that you are proposing would whose job it is to protect this tax sub- this country, little steel arrowheads result in a tariff? sidy—2.2 billion dollars’ worth. So you for hunting and target practice. As- Mr. DORGAN. That is an absolutely have all kinds of lobbyists across this sume another company makes that absurd contention. It makes no sense town who have done an enormous same product to compete with this lit- at all for someone to say, ‘‘Well, this is amount of work here in the Senate to tle North Dakota company and they a tariff.’’ This has nothing to do with make sure that this will not pass. That decide, ‘‘I think we will make them tariffs, nothing to do with inter- is the way the system works. overseas.’’ Our Tax Code says, ‘‘Well, national trade. However, in my judgment, it is not good for you, good decision.’’ In fact, I would love to offer, incidentally, much of a system that allows us to we will reward you for making that de- some amendments on trade, but I shall ever make an excuse for a Tax Code cision. Any money you make, any in- not. This has to do, simply, with a tax that on behalf of the American people come you make, as long as you do not subsidy that now tilts the playing field says our interest is served by paying repatriate it, keep it over there, invest and says to a company, ‘‘If you move those who diminish America’s eco- it over there, you never have to pay those jobs from Akron, from Toledo, nomic strength, who move America’s economic production abroad. American income taxes. Our Tax Code from Bismarck, from Lincoln, to some says, ‘‘Yes, jump on the bandwagon. Let me make a couple of other brief tax-haven company, we will reward points. I do not propose to object if a Move jobs overseas.’’ you.’’ How much is the reward? Well, I The fact is, our manufacturing job U.S. corporation decides that it is come from a town, as I said yesterday, base is diminished. It used to be 24 per- going to compete in Japan or Korea or cent in 1979. Now it is down close to a of 300 people, a high school class of Europe, and in order to do that, be- 15 percent manufacturing job base. nine, a wonderful community in south- cause Japan is locating its production The Senator from South Carolina western North Dakota. The reward facilities in Thailand or Indonesia, the said yesterday, and I agree with him, here is not giant in the context of our U.S. corporation says, ‘‘Well, I will no country will long remain a strong Federal budget. It is $2.2 billion in 7 open up a plant in Indonesia to produce world economic power unless it retains years. products to be sold in Korea.’’ I would a strong manufacturing base. The Sen- Now, that may not sound like much prefer they not do that. I prefer they ator from South Carolina went far to people here who would chair a Budg- put those jobs in North Dakota, as a afield yesterday talking about a wide et Committee, for example. Go to my matter of fact, or in Colorado. But if range of trade issues. There is nothing hometown and talk about $2.2 billion they decide they have to have offshore wrong with that because that is also that the Federal Government asks production to compete with others part of the global discussion. But this other Americans to pay effectively as a with offshore production, fine, I am not is a very simple, modest amendment. subsidy to companies who would move interrupting that. My amendment We are not talking rocket science here. their jobs overseas, and then see what says, however, if you are going to cre- I am not talking about global strate- kind of reaction you get from people ate offshore production facilities to gies, the global economy, or inter- who think with a bit of common sense. create products to ship back into national trade. I am talking about a Now, how does this perversity occur America to compete against American simple proposition: Should this coun- in the Tax Code? This is called deferral, firms, then you are going to obey the try, under any condition, decide that in a fairly common concept in tax law. It same tax laws. You can’t defer any- its Tax Code it should subsidize moving has been there a long while. There also thing. If you make a profit, you pay U.S. jobs overseas? If this Congress are many antideferral provisions in the taxes on the profit. You made the prof- cannot stand up and take the first Tax Code. In fact, the Senate voted a it by making a product and selling it in small baby step in deciding that we couple of decades ago to eliminate all the American marketplace. So you pay should no longer subsidize moving jobs deferral altogether. Deferral means a the same tax that the American pro- overseas, then Lord help a legislative U.S. company does business overseas, ducer pays, who stayed here and pro- body that cannot make that fundamen- makes profits and, therefore, does not duced here. That is all my amendment tal, small decision on behalf of a coun- have to pay tax on their profits be- says. It is very narrow. try. cause they can defer it indefinitely—in Now, the second point I want to The Senator from South Carolina, in fact, until and unless they bring the make is this: Some say—and they will discussing trade yesterday, talked money back to the United States. say it with gusto, if only they will about protectionist, and ‘‘protection- The Senate at one point voted to come out and debate this amendment— ist’’ has a very specific meeting for a eliminate all deferral. The House of and I fully understand why they don’t lot of people debating the global econ- Representatives, when I served in the want to debate this amendment—but omy. Should anyone in this Chamber, House, voted to eliminate a narrow they would say, ‘‘You don’t under- at least when it comes to this issue, portion of deferral, which is exactly stand; we are dealing with a global this simple little tax provision that what I am proposing we do. Eliminate economy. You don’t have the foggiest now rewards those who move American deferral when a company moves their understanding of what on Earth is jobs overseas, should anyone in this jobs to tax havens overseas, produces a going on in this world. If you did, you Chamber deny they are interested in product with those jobs and ships the would not offer this nonsense and you protecting America’s jobs, deny their products back into our country to com- would not talk the way you do about interest in standing up for this coun- pete against other companies whose the trade deficit.’’ try’s manufacturing base? No, I am not jobs and production are here. Well, the global economy has suggesting putting up barriers, but I Again, this is not rocket science. I changed. Our economy in the United am suggesting deciding we will put an am not proposing something that is States has changed our economic cir- end to an insidious, perverse tax provi- hard to understand. I expect in the cumstances. That is certainly true. We sion that rewards those who do the next couple of hours I will lose. I ex- for 75 years fought in this country wrong things moving American jobs pect those who are now concerned about some fundamental issues—mini- overseas. about this and who do not want to de- mum wage, safe workplaces, pollution, S10248 CONGRESSIONAL RECORD — SENATE September 11, 1996 environmental standards, issues with U.S. Senate, about Senator La mous profits. What a wonderful success respect to child labor—and we came to Follette. He was once speaking from story for this fellow and his workers some conclusions on all of them. Then this desk many, many decades ago, I and his corporation. Then he sold some economic enterprises—the largest believe he said, in a filibuster. He or- Rollerblade Corp. He and his wife in the world, in fact—found a way to dered down for a turkey sandwich and moved to Florida. I was on the plane pole vault over all of those issues and a glass of eggnog. Senator BYRD, as he that morning after the Christmas sea- say: You don’t understand. Those told the story, said that the eggnog son, and I read the story about what fights did not mean anything. We can was delivered at this desk to Senator this fellow had done. Just before hire kids—oh, not in America, but we La Follette, and he was trying to take Christmas, this company, that had can hire kids and we can go to other a sip of eggnog as he was speaking. He some nearly 300 employees in the com- countries and hire 14-year-olds, and we took a mouth full of this eggnog and pany out in the manufacturing plants can work them 14 hours a day and pay spit it out and hollered, ‘‘It’s poison, making rollerblades and in the produc- them 14 cents an hour, and they can it’s poison.’’ Some days later, back tion, control, finance, and various make whatever they make, and we can then, they got the analysis of the egg- places, these employees began to re- ship that back to the United States, nog and discovered, indeed, there had ceive Christmas greetings from this and we can sell it in supermarkets and been poison put in that poor Senator’s fellow and his wife, who used to own in the discount stores. We can do that eggnog. So I have not had an urge to their company but who had sold it a in the name of profit because it is part filibuster from this desk since the reci- couple of months previous. As these of the global economy. tation of that wonderful story about employees opened up their Christmas Well, that might be the way they another occupant of this desk, Senator greetings at home, they discovered a have described the global economy, but La Follette. I did not ever hear the Christmas card and a check from this it is not fair competition. Free trade conclusion of that story, whether they man and his wife. ought to mean fair trade. This is not found out who laced the eggnog. But I The check equaled a certain amount fair competition. Those who describe am not ordering eggnog today, and I of money multiplied times the months the global economy as working in that am not intending to filibuster. I do ex- that each of those employees had way are describing a system that is pect that there are a whole lot of folks worked for that company. Some checks now being discussed in the Philadel- in this town—hired by enterprises that were as much as $20,000 to the people phia Inquirer. I think they are doing 10 will benefit from this $2.2 billion—who out on the manufacturing line. or so segments that are wonderful seg- think this is real poison. Oh, they But there is more. This fellow not ments on this entire issue. The one in think this is awful. God forbid that we only sent them a check, but he told Monday’s newspaper deals with export- should pass something like this amend- them that he had prepaid the taxes on ing jobs again. It describes a couple— ment. What an awful thing to do. Sen- the checks. So this was theirs. The Lynn and Ed Tevis—who worked for a ator DORGAN just doesn’t understand. taxes were paid, and he was sending company for 20 years and were dis- Well, the point is, I do understand. this money to them because he ran a carded like a wrench that was used up. What we are doing is fundamentally very successful company, sold it, made Human capital now is like a wrench or wrong. What we are doing weakens this an enormous amount of money. And he a hammer or a pair of pliers. When country. What we are doing in our Tax said, ‘‘I know that part of the reason, a they are done with it, they throw it Code says to multinational corpora- major reason, this company succeeded away. They are told: We are sorry. You tions that you can make a choice about was because you people worked for it. worked for us 20 years. This job is now where to put your jobs, and you can You people that made those in Singapore, or this job is now in Ban- put them elsewhere, move them out of rollerblades, those skates out on the gladesh. Your job with us is over. America, because jobs are not the manufacturing line, made this com- That is what is happening in this issue. Well, jobs are the issue. Good pany what it was. I made a lot of country. jobs that pay well and provide real se- money as a result, and I want to share My suggestion is not that we decide curity for American workers are the some of that with you now that I have that we are not part of the global econ- issue. American workers are not tools. left this company.’’ omy. We are. My suggestion is that we They are part of a group of people who Out of the blue, a check for $20,000 decide, as a country, what the rules are help make these companies the great with the tax prepaid. I got back to for access to our marketplace. Is there companies they are. Washington, DC, after I read that a rule about accessing America’s mar- I am going to finish with one short story. I called him down in Florida. I ketplace with labor from 14-year-olds story. Just after Christmas this past said, ‘‘You know, at a time when so who are paid 14 cents an hour? Is there year, I was on an airplane, Northwest many in American business believe or isn’t there? If there is, let’s start en- Airlines, traveling from North Dakota that workers have no value, they are forcing it. Should there be a rule that back to Washington, DC. I read a story just wrenches and tools and things that at least the American taxpayers should in the Minneapolis Star Tribune that you either hire or throw away at will, be assured that the Tax Code is not brought tears to my eyes. It was a it is so nice to see someone who once subsidizing the movement overseas of story about a businessman and his again believes that part of what made American jobs? Should there be that wife. I believe his name was Mr. Nagle. that company successful were the men assurance made to the American tax- He was a fellow who started a company and women who worked for that com- payer? The only way we will give them in the early 1980’s and was incredibly pany.’’ that assurance is to step up now and successful, made an enormous amount It was such a wonderful story. That vote. of money. It was a very simple idea. ought not to be the exception. One The desk I sit at in the U.S. Senate The company’s name is Rollerblade, would hope that would be the rule in was a desk that was occupied at one which many Americans will recognize. our country. But this man is such an point by a man named La Follette from He began, as I recall, in a circumstance exceptional man. Everyone else does it Wisconsin, Senator La Follette. For where hockey players wanted some- differently. Everyone else now says those that don’t know the tradition of thing to practice skating on when it people do not matter; they are expend- the Senate, the tradition has always wasn’t wintertime up in our part of the able; get rid of them. For the jobs in been to carve your name inside the country, Minnesota and North Dakota. Kansas City, ‘‘If you can put more desk drawer of the Senate desk. It has So there was invented something that money in Bangladesh, move it to Ban- been a longstanding tradition in the was the early version of what we now gladesh. It does not matter.’’ Senate. If you pull out the desk draw- know as ‘‘Rollerblades.’’ The Here is a picture of two people. And er, the bottom drawer—the only drawer Rollerblade company, I believe, was I have lots and lots of pictures that I in the desk—you will find a list of probably the pioneering company. This will not show today. Lynn and Ed Tevis names of Senators who sat in that fellow ran the company and he turned moved 1,200 miles for a company they desk. this tiny little company into some- had worked 12 to 14 years for already. I was told a story by Senator BYRD, thing extraordinary. It grew and blos- They downsized and moved 1,200 miles. who is the preeminent historian of the somed and prospered and made enor- Two years later they downsized again, September 11, 1996 CONGRESSIONAL RECORD — SENATE S10249 and said, ‘‘You are done. It is all over; this big slab of cement, the whole ate—true-false. Just look at the polls. I nothing more.’’ It is just human cap- darned thing collapses. will go back home, and, ‘‘I am against ital that is expendable. That is the way legislative activity is taxes.’’ In fact, only 17 percent of the My point is this: I do not believe the as well. You don’t always get it the people in one poll taken at that time, U.S. Senate can make decisions about first time. You don’t always see a dis- Gallop, said at that particular time— jobs for international businesses and cernible result. But one of these days that only 17 percent favored the Mar- for U.S. corporations. But I believe we will change this provision in the tax shall plan. But we had division as they that this Senate can make decisions law. It is not the biggest issue in the all talked to. Everybody wants to use about whether our Tax Code rewards world. But it is something that ought the buzzwords, and they come on with those people who do the wrong things to be changed, and something this Con- their little 20-second sound bite, and about jobs. I do believe our Tax Code gress ought to remedy. This will not be said, ‘‘we have the vision.’’ There is not could stand on the side of American the end of the debate. any vision in any of this stuff going on businesses who stay here and have jobs But I appreciate the indulgence of about gay marriages and everything here and compete here. When we find the Presiding Officer, and I appreciate else. They are not national problems that our Tax Code says to others, ‘‘Go also the patience of the Senator from whatever. When you get to a real na- away, ship your products back, and we South Carolina. tional problem, as it is about the eco- will give you a competitive advantage I yield the floor. nomic security—and I emphasize ‘‘eco- over the people who stayed here,’’ I be- Mr. HOLLINGS addressed the Chair. nomic security’’—you can find the Sen- lieve that our Tax Code can be changed The PRESIDING OFFICER. The Sen- ators want it. to decide that is unfair, and that we ator from South Carolina is recognized. I would amend the idea of just jobs will not allow that to happen anymore. Mr. HOLLINGS. Mr. President, let because jobs appeals to the polls. You I offered this yesterday. The Senator me try to answer why there will not be are for jobs, or against jobs. And it from South Carolina spoke. I assume one come and join the debate. It is eas- makes it just a little political nuance that we will have someone come and ily understood. It is the result, of of a campaign. The truth is the secu- procedurally offer a motion to try to course, of our affirmative action policy rity of the United States of America is avoid the debate on this. I would love after World War II of trying to rebuild an issue here with respect to this par- to have the debate. I would love to find the industrialized nations. It spread ticular amendment. The passage of the one person who will give me one reason capitalism in Europe, and out into the amendment is not going to ensure the that we ought to reward anyone with Pacific rim. And our affirmative action security. It is going to begin as a wake- tax breaks that move jobs overseas; policy called for various things to in- up call, and a trend backward. just one. I am not asking for a dozen. I duce American investment overseas. I have described that the success of am not asking for the impossible. One We put in, as you can find in the early the United States, the strengths that person give me one reason; just come, morning news now on the front of the we have as a nation, the security that stand, and give me one reason. The last business page, the Overseas Private In- we have as a nation, rests, as it were, time we had someone come and say, vestment Corporation, subject to as- on the three-legged stool: The one leg, ‘‘Well, we will hold hearings on this. sault because it is no longer needed. It the values of a nation. That leg is This is not the place. This is not the was needed at that time. Industry had strong, and unchallenged. We sacrificed time. This is not the way.’’ They will to be ensured against expropriation to feed the hungry in Somalia. come today again. They will say, ‘‘This and the loss of their investment over- We sacrificed to build democracy in is not the place. This is not the time. seas. Haiti. We sacrificed to build peace in This is not the way to hold hearings.’’ So we passed the Overseas Private In- Bosnia. Everyone the world around as I have heard all of that before. Just vestment Corporation [OPIC]. Then we we travel knows the great contribu- give me one reason that this country found that we could subsidize, give in- tions and sacrifices made by American ought to have a Tax Code that says we ducements by way of actual subsidy for taxpayers for its values. encourage moving American jobs export overseas, with the Export-Im- The second leg is that, Mr. President, abroad. If anyone can do that, alert me port Bank. And we put in various tax of course, of our military strength. that you are coming so we can spend a deferrals. That is unquestioned. little time visiting about it, and I The reason the distinguished Senator But that third leg, that economic leg, would love to have the American peo- from North Dakota in our amendment without which we cannot foster values ple hear the other side of this debate. is not going to win, as he says, today as or protect ourselves militarily—and I I have spoken twice now at some you can only look at the Republican emphasize in World War II we won on length. The American people have not screen at Channel 2. And it says new account of Rosie the Riveter; our in- had the advantage of having someone taxes. Once it is labeled as new taxes, dustrial might overwhelmed Hitler; else come, and stand up and say, that crowd will run in the other direc- there is not any question about that— ‘‘Count me in. My name is X, Y, and Z, tion because we live in this symbolic has become somewhat fractured and and I believe we ought to have in our poster world of true-false, up-down, ‘‘I enfeebled, if you might, as a result of Tax Code an incentive to move jobs am for the families, and against taxes; the affirmative action. overseas.’’ Is there anyone who will do I am for jobs, and against crime.’’ And Now, what was the affirmative ac- that? Anyone? that is all you get out of them—is sym- tion? As I said, not only the subsidies, Well, I doubt it. But it is now in cur- bolic nonsense. So they will not really the insurance, the deferrals, but get rent law, and we must take it out at get to the guts of the issue. out of here, just scatter, let us get in- some point. A lot of folks don’t want it It is not a new tax. It just says those dustry, get American investment taken out. Those are the folks who will who are paying taxes for production abroad and spread capitalism. As I say, benefit by the $2.2 billion. That is the here should be on an equal footing and it has not only been successful but it way the political system works. But if not penalized with American invest- has become unfairly competitive. we keep prodding, agitating, one of ment and corporations overseas for When I say unfairly competitive, I these days we are going to get this producing overseas. We are trying to mean that the other competitors in the Congress to do the right thing. cut out that deferral. Pacific rim do not practice free trade. I tried to break the cement in the As a result of our affirmative action Oh, they use the rhetoric of free trade, driveway one day, and it reminded me policy and spreading capitalism after but I can tell you here and now, try to that it is a lot like legislating. If you World War II—I am not debunking it, get into some of the markets. Our tex- take a 16-pound mallet and try to or regretting it. It has worked. The tile industry tried to get into Korea. break cement in a driveway, you wind Marshall plan is one of the great suc- They have got to get a vote of the Ko- up hitting the driveway as hard as you cess stories of all history by way of rean textile folks before they can come can with this giant mallet, and nothing people taxing themselves. They think. into Korea. Try to get into Japan. Oh, happens. You hit it again, and nothing They didn’t have pollsters running they talk a little here about Motorola happens. You hit it again, and nothing around loose in the late 1940’s to get is doing a little bit; Intel will come in happens. About the 15th time you hit these children to come to the U.S. Sen- a little bit. But really in trying to open S10250 CONGRESSIONAL RECORD — SENATE September 11, 1996 up the markets, we have had a dismal you have the multinational banks and, I will be glad to yield for a question. record over some 50 years trying to get of course, the State Department. Then Mr. BROWN. I notice the Senator is into the country that we saved that when we debated back when I first the No. 2 sponsor on the bill. Perhaps does not practice free trade. Come on. came here—I will never forget it—and he might respond to a few questions Everybody knows that. we passed the textile bill—it did not that I have with regard to it? (Mr. ASHCROFT assumed the chair.) get past the House but we passed one Mr. HOLLINGS. Yes, sir. Mr. HOLLINGS. What happens is here in the late 1960’s, early 1970’s—at Mr. BROWN. I notice, reading that now we are confronted—and that that particular time we found out the through the amendment, it gives a spe- is why you do not find them in the real opposition that gears up the votes cial exemption for oil. Everybody is Chamber—with the opposition. You in this Chamber. And that is the retail- subject to this special tax except the might call them the enemy here, the ers. In order to bring it to the atten- oil companies. Why was the decision fifth column in this economic war. Let tion of our colleagues, we went down made? What is the reasoning for giving us start and list the soldiers in that into the stores here in Washington, DC, the special treatment to oil? particular opposition or enemy, that and we got a shirt that was manufac- Mr. HOLLINGS. The principal author fifth column. tured in Taiwan—well, a ladies blouse, could respond more accurately, but I The soldiers in that fifth column I remember correctly, one made in Tai- am convinced we did that to try to get begin, of course, with the State Depart- wan for $32 and the one made in New votes. I hope agriculture—— ment. The State Department had an af- Jersey was also $32. We found a catch- Mr. BROWN. That is without prece- firmative action of sacrificing the in- ing glove made in Korea at $42 and one dent. dustrial might for friends. Fortunately, made in Michigan at $42. Mr. HOLLINGS. Yes. Agriculture, Secretary Christopher has changed We went down the list. We piled the that crowd there, I will never forget that. Secretary Brown changed that to desk up to show that the retailers were when I went out campaigning in the some extent. And we are beginning to not by way of global competition re- Presidential race, ‘‘Dutch’’ Reagan’s change that. But that is the way it ducing the price. They were making a special station in Des Moines, IA, you started. That was the best of diplo- bigger profit. So the retailers are real- get on there at 5 o’clock for questions. macy: ‘‘Oh, don’t worry; we are fat, ly geared up and they call their stores They said no Democrat would appear. rich and happy back in America.’’ We around and everything else of that So, you know, if it was for free—I did have seen it over the 30 years I have kind and they intimate to us as politi- not have any money—I got on there, served in the Senate. cians, U.S. Senators, and they come in and they said, ‘‘Senator, you come We started with these corporations and zoom in on us and we have to be for from a textile State and you want all that we induced overseas as nationals ‘‘free trade, free trade. Let’s don’t this protectionism and subsidies and that became multinationals. They Smoot-Hawley, start a worldwide de- everything else. How do you expect to found out that they could produce pression.’’ get a vote out here in agricultural more economically, make a profit for So you have then the retailers. Then, Iowa?’’ their stockholders, and as a natural de- of course, you have the Washington I said, wait a minute, let me correct velopment the nationals became multi- lawyers, and none other than now the the record. No. 1, I happen to be for nationals. Reform Party Vice-Presidential nomi- And the banks—Chase Manhattan, nee, Dr. Pat Choate. In his book ‘‘The subsidies. I happen to be for the quotas First Citicorp, all the big banks as of Agents of Influence,’’ he took one and the protectionism for agricultural 1973—I remember back in the 1970’s we country, the country of Japan, and list- quotas. We have wonderful farm folks, found out that our large American ed out how they had over 100 Washing- growing soybeans, wheat, corn, every- banks were making the majority of ton firms, lawyers, consultants, paid thing else in South Carolina. But let their profits outside of the United over $113 million to represent the peo- me get the record clear. We do not ask States, so they were not really Amer- ple of Japan here in the Capitol, where for a subsidy for textiles. We do not ican banks. They were multinationals the 100 Senators, the 435 congressmen, ask for Export-Import Bank financing. or had their, let us say, loyalty and na- the cumulative salaries of the 535 is We do not ask for tax deferrals. When tionalism, profitwise at least, outside $73.1 million. By way of pay, the people I get to that Nebraska corn, when I get of the United States, certainly not in of Japan are better represented here in to Colorado and these agricultural the United States of America. Washington, DC, than the people of the States, that is the crowd that runs So you have the State Department; United States of America. You have a around hollering, ‘‘Free trade, free you have the multinationals; you have powerful force. trade, keep subsidizing me, keep fi- the banks, and then, of course, with Chair the Commerce Committee, nancing me, keep deferring me.’’ Be- that money they developed the con- which I have for years and am now the cause why? Our friend Wayne Andrus sultants and academia. All the consult- ranking member, and get these trade has all the news on Sunday. He has ants are not paid by those who are measures and others to come up, and ‘‘Meet the Press,’’ he has ‘‘This Week coming along talking about jobs and they zoom in immediately with the With David Brinkley,’’ he has even the the economic security. You go to any Washington lawyers, and I mean pow- public television and everything else. of these conferences, these particular erful ones, Mr. President. They are no All he talks is, ‘‘exports, exports, ex- institutes all over this city are just more powerful than the Special Trade ports,’’ and we come in here like mon- rampant with these consultants who Representative. Heavens above. We saw keys on a string hollering, ‘‘exports, are talking, ‘‘Free trade, free trade, my good friend, Bob Strauss, we saw exports, exports.’’ I mean, we have a free trade,’’ shouting, ‘‘Smoot-Hawley, my good friend Bill Brock, all rep- regular drumbeat. Smoot-Hawley. We are going to end the resenting the foreigners after they had I would ask the Senator from North world and go into a global depression.’’ been the Special Trade Representative. Dakota who drafted our amendment, I And otherwise academia. I do not It was like Colin Powell going over to am sure oil is a matter of national se- have that booklet with me. There was represent Saddam. And what did we curity, and we put in special provi- a very sharp economist, Miss Jacobsen, have to do? Put a rider in the bill of sions, as we well know, for oil. who put out the booklet here some 10 the Special Trade Representative; they Mr. BROWN. The other question I years ago showing how academia had could not do that after 5 years. It had—there were several others, as I been taken over by the foreign entities caught Mickey Kantor—he was the went through it. I notice the distin- and the multinationals. You go up east first one—now Secretary Kantor, the guished Senator from North Dakota to the Ivy League and find out their in- Secretary of Commerce, when he was said, ‘‘We encourage moving jobs vestments up there to bring about the Special Ambassador Kantor, but we abroad, and we ought to take that lan- thought and get a free ride into dump- had to finally put it in there to stop guage out of the code.’’ ing their goods back here in the United that. But we had the best of the best I have looked through the amend- States and they will not allow us into trained, the best of the best friends and ment. I do not find ‘‘striking’’ lan- their markets. influence, ambassadorial rank, coming guage, other than striking the end of So you have academia; you have con- around, and after you are talking ‘‘free the period and adding additional lan- sultants; you have the multinationals; trade, free trade, Smoot-Hawley.’’ guage. Is there a section of the code September 11, 1996 CONGRESSIONAL RECORD — SENATE S10251 where we ‘‘encourage moving jobs years, come, we have to do something jury, a violation of our trade laws, abroad?’’ about it. dumping, over at the International Mr. HOLLINGS. The tax deferral it- You will get some who come here, Trade Administration, in Commerce, self, obviously. Oh, yes, that encour- like my distinguished friend from New then they have to buck it over to the ages it. York, he will get up, ‘‘Why, America International Trade Commission, and Mr. BROWN. What section is that? has always been a great nation on ac- that crowd constantly bubbles, ‘‘free Mr. HOLLINGS. The cost and every- count of commerce. We are a trading trade, free trade, free trade,’’ and finds thing. IBM moved all their research nation. Are we going back on our his- against us. overseas. We are losing not only our tory?’’ So, the business folks in America jobs in manufacturing, we are losing We were a trading nation of a plus say, ‘‘Why even bring the case? It takes our research centers and everything balance of trade, not a minus. Not a you 3 or 4 years. You go through all else of that kind. minus. What does the record show, that gauntlet with Washington lawyers Mr. BROWN. The Senator talked heavens above? That thing goes up, up, and costs, and when you finally get it, about repealing something out of the and away. I think it was in 1992 we fi- you are not going to win anyway’’? So law, yet there is nothing repealed in nally got it under $100 billion, only to they say, ‘‘We will just move our pro- the amendment. a $96.1 billion deficit; in 1993, it was duction overseas.’’ That is the good Mr. HOLLINGS. Modifying the defer- $132.6 billion; 1994, a $166.1 billion defi- reason for the production moving over- ral itself. cit in the balance of trade—more im- seas and the loss of jobs here. Mr. BROWN. The deferral? ports than exports. Not what my But, Mr. President, let me sum up Mr. HOLLINGS. Tax, income made friend, Wayne Andrus from Archer- that particular matter of the fifth col- from production overseas. There is a Daniels-Midland—‘‘exports, exports, umn, so we will understand it. I would tax deferral for that, and this does exports.’’ We have to look at the over- no longer include our State Depart- away, partially, with that by the all picture. ment, but I could certainly start off amount of products shipped back in In 1995, $174 billion? We are going up, with our multinationals, our multi- and jobs lost. That is the way the up, and away. We are losing our shirt national banks, the consultants, aca- amendment is worded. and enjoying it. We, as Senators, are demia, the retailers, the Washington Mr. BROWN. If I can put this in my telling the American people, ‘‘We are lawyers, and, of course, the Special own words, and maybe the Senator will fat, rich, and happy. Don’t worry about Trade Representatives, all representing correct me, we are not saying there is your economy. All you have to do is them and heading up these particular a section in the code that does that, we worry about gay marriages. The States entities. When you get all of those are saying it is simply not covered in are taking care of it.’’ coming in giving you a false history— the code? We come up on the silliest thing. In- free trade, free trade, Smoot-Hawley, Mr. HOLLINGS. We are referring to stead of balancing the budget, we will Smoot-Hawley—that is the reason for the tax deferral section. give you a constitutional amendment this particular bill. Mr. BROWN. I do not find any repeal so we can run on it. Come on. The distinguished Senator from of that tax deferral section in here. Mr. BROWN. The Senator referred to North Dakota, I think, used the expres- Mr. HOLLINGS. It is a modification the phenomenon. I think it is the game sion ‘‘go far afield.’’ That is my intent, of it. played sometimes with automobile to bring understanding. Unless we can Mr. BROWN. I wonder if there are manufacturers, where they take their get a grasp of our history and how we built this strong America and what is other countries that have provisions profit overseas and overprice the auto- really the opposition, the fifth column like this. This, in effect, is that it mobile as it comes in here so they do that confronts us, we are not going to taxes profits on activity outside of the not show any profit in the United get a competitive economic society. We United States, I take it? States. are going to just service the economy Mr. HOLLINGS. Right. Mr. HOLLINGS. They overprice the and take in wash and serve hamburgers Mr. BROWN. Are there other coun- parts and assemble them here. That is to each other. We will have no manu- tries that do a similar thing? what they are doing. facturing capabilities. When war Mr. HOLLINGS. Do they do it? They Mr. BROWN. So, by manipulating the comes, we will have no military pro- make sure that they do not make a prices, they are avoiding recognizing duction. We will have to depend, like profit. You ought to come and see how profit in this country and thus avoid Japan, on the gulf war, and that is why they highball the cost of the parts that paying taxes in this country? you panic. They say, ‘‘No, we are going they ship through the Port of Charles- Mr. HOLLINGS. Oh, yes, that is to cut it off to the United States and ton, SC, and send up to, let us say, Nis- right. san-Tennessee to make automobiles up Mr. BROWN. Doesn’t our tax law now say no to her and she won’t be able to there. They get a high cost for the part give us the tools to go after them when do these things of protecting freedom so Nissan-Tennessee is not even mak- they play those games with prices? the world around.’’ So it is not far afield. This is to ing a profit in Tennessee. Mr. HOLLINGS. I think our tax law break open the door. This particular We have tried to correct that one. does. But there are some—— amendment is a wake-up call, and it is Oh, they have every gimmick in the Mr. BROWN. It simply does not get not a spurious one whatsoever. It is book. When you get with these tax law- done. yers, they know how to get around Mr. HOLLINGS. In the Treasury De- current. I refer, Mr. President, to the article, anything and everything. partment, it just does not get done. once again, of our distinguished friend, Incidentally, I have an article here You and I know we need, for example, William Grieder, former editor at the about Nissan, and Nissan is moving to hundreds more Customs agents. They Washington Post and now the editor of Mexico. We will get into that on have told us down at Treasury there Rolling Stone. NAFTA. We love to get these foreign are billions of transshipments. We just I ask unanimous consent the ‘‘Ex-Im investments, but they are just got China, and there is a case right Files,’’ an article dated August 5, 1996, passthroughs now. An expansion of now of over $5 billion. It is really a sad be printed in the RECORD. BMW that had come to Spartanburg, case. There being no objection, the article SC, is going into Mexico. They will fol- In the textile debate, I said, ‘‘Wait a was ordered to be printed in the low the market, which is fine. It is a minute, I will withdraw this textile bill RECORD, as follows: matter of taking care of your stock- entirely if we just enforce the law.’’ So THE EX-IM FILES holders and profits and that kind of you are right. If we enforced our tax HOW THE TAXPAYER-FUNDED EXPORT-IMPORT thing. Business is business. laws, if we enforced our trade laws, our BANK HELPS SHIP JOBS OVERSEAS But we have to understand that the customs law, our import duties, we (By William Greider) business of the U.S. Senate is to look would do a lot to solve this. WASHINGTON, DC.—As the Nation’s sales- at the overall economy, and when we If I were king for a day, I would start man in chief, Bill Clinton looks like a have these deficits in the balance of by abolishing the International Trade smashing success. When Clinton came to of- trade, over $1.5 trillion in the past 12 Commission. Every time they find in- fice, his long-term strategy for restoring S10252 CONGRESSIONAL RECORD — SENATE September 11, 1996 American prosperity had many facets, but the purpose when the bank was chartered as 15 percent foreign inside content. Partial fi- the core of the plan could be summarized in a federal agency back in 1945 and the reason nancing would also be provided for export one word: exports. The U.S. economy would it has always enjoyed broad support, includ- deals that involved at least 50 percent U.S. boom or stagnate, it was assumed, depending ing that of organized labor. content. on how American goods fared in global mar- At this moment, the tiny agency is under Now the multinationals are back at the kets. So the president mobilized the govern- intense pressure from influential U.S. multi- table again, demanding still more latitude. ment in pursuit of sales. nationals to change the rules of the game. The bank’s rules, they complain, have cre- Flying squads of Cabinet officers, some- Specifically, the companies want taxpayer ated a bureaucratic snarl that threatens U.S. times accompanied by corporate CEOs, were money to subsidize the sale of products that sales. These regulations are oblivious to the dispatched to forage for buyers in foreign aren’t actually manufactured in America. complexities of modern trade which multi- capitals from Beijing to Jakarta. The Com- They want subsidies for products that are nationals routinely ‘‘export’’ and ‘‘import’’ merce Department targeted 10 nations— not really U.S. exports, since companies ship huge volumes of goods internally—that is India, Mexico and Brazil among them—as the them from their factories abroad to buyers among their own fur-flung subsidiaries or ‘‘big emerging markets.’’ Trade negotiators in other foreign countries. If the rules aren’t foreign joint ventures. hammered on Japan and China to buy more changed, the exporters warn, they will lose The flavor of the company complaints is American stuff. And two new agreements major deals in the fierce global competition revealed in Ex-Im Bank minutes of the re- were completed—GATT and NAFTA—to re- and may be compelled to move still more of view group’s first meeting last year, where duce foreign tariffs. their production offshore. various company managers sounded off U.S. industrial exports have soared in the ‘‘Global competitiveness, multinational about the new global realities. David Clinton years, from $396 billion during the sourcing and the deindustrialization of the Wallbaum, from Caterpillar, urged the bank recessionary trough of 1992 to around $520 U.S.’’ wrote Cruse in a policy memo for the to be ‘‘more flexible in supporting foreign billion last year. And as this administration bank, ‘‘were the three most common factors content,’’ according to the minutes, General has said time and again, more exports means that exporters cited as reasons to revise Ex- Electric’s Selig S. Merber said GE needs ‘‘ac- more jobs—usually good jobs with higher Im Bank’s foreign content policy. . . . U.S. cess [to] worldwide pricing.’’ Merber pro- wages. In his fierce commitment to trade, companies need multisourcing to be able to posed that instead of insisting on American Clinton is not much different from Ronald compete with foreign companies. Foreign content item by item, Ex-Im look only at Reagan, who (notwithstanding his laissez buyers are becoming more sophisticated and the U.S. aggregate. faire pretensions) also played hardball on they are expressing certain preferences for a Lisa DeSoto of Fluor Daniel, one of Ameri- trade deals and, in some cases, intervened particular item to be sourced ca’s largest construction engineering firms, with more effective results. George Bush, foreign . . . [and] U.S. suppliers may not al- suggested in a follow-up memo that Ex-Im too, bargained on behalf of corporate inter- ways exist for a particular good.’’ subsidize ‘‘procurement from the NAFTA ests and played globe-trotting salesman. In plainer language, foreign is usually countries,’’ Mexico and Canada as if the Promoting exports and foreign investment is cheaper—often because the wages are much goods were from the U.S. not a new idea; it has enjoyed a bipartisan lower—and sometimes better. As U.S. pro- But it was Angel Torres, a representative political consensus for decades. ducers have begun to buy more hardware and for AT&T, who spoke more bluntly than the What does seem to be new in American pol- machinery overseas, the capacity to make others. AT&T’s foreign content has grown in itics are the thickening doubts among citi- the same components in the United States the last 10 years because the U.S. is becom- zens and a rising chorus of critics, informed has diminished or even disappeared. What ing a ‘‘service-oriented society,’’ Torres said, and uninformed, who question Washington’s the companies want in Cruse’s bureaucratic according to the minutes. ‘‘AT&T’s prior- assumptions about exports. The conven- parlance, is ‘‘broadly based support for for- ity,’’ he declared, ‘‘is to increase the allow- tional strategy, the critics argue, may help eign-sourced components.’’ able percentage of foreign content.’’ the multinational companies turn profits, As the complaints from American firms When I rang up these corporate managers but does it really serve American workers swelled in the last few years, Ex-Im officials and some others to ask them to elaborate on and the broad public interest? The new reali- agreed to convene the Foreign Content Pol- their views, all of them ducked my ques- ties of globalized production play havoc with icy Review Group to explore how the U.S. fi- tions. The one exception was David L. the old logic of exports-equal-jobs. Some- nancing rules might be relaxed. The review Thornton, a manager from Boeing, whose times it is the jobs that are exported, too. group’s members include 11 major exporters newest jetliner, the 777, actually involves 30 This contradiction, usually covered up (General Electric, AT&T, Boeing, Caterpil- percent foreign content in the manufactur- with platitudes and doublespeak in political lar, Raytheon, McDonnell Douglas and oth- ing process (mostly from Japan). It still debate, becomes powerfully clear when you ers) plus several labor representatives from qualifies for full Ex-Im financing. Thornton look closely at the dealings of an obscure the AFL–CIO and the machinists’ and tex- explained, because Boeing’s original invest- federal agency located just across Lafayette tile-workers’ unions. ment in research and development also Park from the White House: the U.S. Export- The Ex-Im Bank must decide who wins and counts in the sales price. ‘‘Our general view Import Bank with only 440 civil servants and who loses—a fundamental argument over of 75 percent is we can live with it for the a budget of less than $1 billion—small change what is in the national interest, give time being,’’ Thornton said, ‘‘but over time as Washington bureaucracies go. globalized business. The review group discus- it probably won’t be adequate.’’ Yet America’s most important multi- sions are couched in polite police talk, but The labor-union representatives, not sur- national corporations devote solicitous at- they speak directly to the economic anxi- prisingly, choked at the ominous implica- tention to the Ex-Im Bank. Their lobbyists eties of Americans. If young workers worried tions of such comments—especially the mat- shepherd its appropriation through Congress about their livelihood could hear what these ter-of-fact references to America’s de-indus- every year and defend the agency against oc- powerful American companies are saying in trialization. Corporate leaders and politi- casional attacks. Why? The Ex-Im Bank pro- private, there would be many more sleepless cians, after all, have been celebrating the vides U.S. corporations with hundreds of mil- nights in manufacturing towns across this ‘‘comeback’’ of American manufacturing in lions of dollars each year in financial grease Nation. The information below is taken from the 1990s. Exports are booming, and U.S. that smooths their trade deals in the new confidential Ex-Im Bank members that were competitiveness has supposedly been re- global economy. recently leaked to me. What these execu- stored, thanks to the corporate This year, Ex-Im will pump our $744 mil- tives have to say is not reassuring, but it’s restructurings and downsizings. Stock prices lion in taxpayer subsidies to America’s ex- at least a more accurate vision of the future are rising, and shareholders are happy again. port producers, financing the below-market than anything you are likely to hear from The private corporate view is not so cheery loans and loan guarantees that help U.S. this year’s political candidates. for the employees. A memo from one multi- companies sell aircraft, telecommunications A decade ago the rule was simple: Ex-Im national corporation (its identity whited-out equipment, electric power turbines and other would not underwrite any trade package by Ex-Im bureaucrats) made it sound like products—sometimes even entire factories— that was not 100 percent U.S.-made. Then the demise of American manufacturing is al- to foreign markets. Since the biggest sub- and now Ex-Im scrutinizes the content of ready inevitable. ‘‘We believe the current sidies always go to the largest corporations, very large export projects, item by item. to policy does not reflect the de-industrializa- skeptics in Congress sometimes refer to Ex- establish the national origin of subcompo- tion of the U.S. economy and the rise of the Im as the Bank of Boeing. It might as well be nents. Any subcomponents produced offshore Western European and Asian capabilities to called the Bank of General Electric—or must be shipped back to American factories produce high-tech quality equipment . . .’’ AT&T, IBM, Caterpillar or other leading pro- to be incorporated into the final assembly. If the memo states. ‘‘Location is no longer im- ducers. Ex-Im’s senior officers call these Caterpillar sells 10 earthmoving machines to portant in the competitive equation, and firms ‘‘the customers.’’ Indonesia all 10 of them have to come out of where the suppliers of components will be But the banker-bureaucrats at Ex-Im see a U.S. factory to get a U.S. subsidy, even if [is] wherever the competitive advantage their main mission as fostering American the axles or engines were made abroad. lies.’’ employment. ‘‘Our motto is, Jobs through By the late 1980s, however, as major manu- The more that labor heard from the com- exports,’’ says James C. Cruse, vice president facturers pursued globalization strategies panies, the more hostile it became to any re- for policy planning, ‘‘Exports are not the end that moved more of their production off- vision. ‘‘We have been presented with no in itself, so we don’t care about the company shore. Ex-Im, with labor approval opened the credible evidence that current bank policies and the company profits.’’ That was indeed door. In 1987 it agreed to finance deals with have cost companies sales, thereby reducing September 11, 1996 CONGRESSIONAL RECORD — SENATE S10253 U.S. employment,’’ the labor representatives sions. The 15 largest export producers with Japanese jobs are regularly eliminated when fired back in a jointly signed letter in April. few exceptions have steadily reduced their Japan’s manufacturing is relocated offshore ‘‘While we understand that global corpora- U.S. work forces during the past 10 years— in Asia or in Europe (and sometimes in the tions might prefer fewer restrictions—even some of them quite drastically—even though U.S.), but the companies find new jobs for the provision of financing regardless of the their export sales nearly doubled. displaced employees and only rarely, reluc- effect on jobs in the United States—that de- GE is a prime example because the com- tantly, lay off anyone. sire simply ignores the very purpose of ex- pany is widely emulated in business circles ‘‘The situation that our companies see,’’ tending taxpayer-based credit.’’ for its tough-minded corporate strategies. In Ex-Im’s Cruse explains, ‘‘is that Japan is If Ex-Im agrees to finance more foreign 1985, GE employed 243,000 Americans and 10 willing to finance as much as 50 percent for- content, the labor reps asked, won’t that years later, only 150,000. GE became strong- eign content, and [the companies] say to us, simply encourage the multinationals to er, then Executive Vice President Frank P. ‘You’re not competitive.’ But an important move still more U.S. jobs overseas, thus ac- Doyle said. But, he conceded. We did a lot of difference is that the Japanese government celerating deindustrialization? When I put violence to the expectations of the American doesn’t have to worry about the workers be- this question to Ex-Im officials and cor- work force. cause the Japanese companies worry about porate spokesmen, their answer was a limp So, too, did GM, the top U.S. exporter in them. . . . If GE subcontracts work to Indo- assurance that this isn’t what the bank or dollar volume (though the auto companies nesia, it tends to lay off a line of workers the companies have in mind. are not big users of Ex-Im financing). GM back in the U.S.’’ has shrunk in U.S. work force from 559,000 to But can anyone trust these assurances? BAIT AND SWITCH The massive corporate layoffs have sown 314,000. IBM shed more than half of its U.S. In April 1994, AT&T announced a $150 tril- general suspicions of the companies’ na- workers during the past decade (about 132,000 lion joint venture with China’s Qingdao Tele- tional loyalties, and the ‘‘outsourcing’’ of people). By 1995, Big Blue had become a truly communications to build two new factories, high-wage jobs has already boiled up as a global firm—with more employees abroad in the Shandong province and in the city of strike issue in major labor-management con- than at home (116,000 to 111,000). Even Intel, Chengdu, in the Sichuan province, that will frontations. The United Auto Workers shut a thriving semiconductor maker, shrank manufacture the high-capacity 5ESS switch, down General Motors earlier this year over U.S. employment last year from 22,000 to the heart of AT&T’s advanced telephone sys- that question. The UAW lost a long, bitter 17,000. Motorola has grown, but its work tems. AT&T’s chairman, Robert Allen, said strike at Caterpillar when it demanded wage force is now only 56 percent American. that it will more than double its Chinese cutbacks, threatening to relocate production The top exporters that increased their U.S. work force over the next two or three years. if the union didn’t yield. The International employment didn’t begin to offset the losses. The bottom line tells the story. The govern- Five months later, in September, the Ex- Association of Machinists and Aerospace Im Bank in Washington approved the first of Workers closed down Boeing’s assembly lines ment’s great substitute for America’s major multinational corporations has not been re- $87.6 million in loan guarantees to under- for two months last fall, demanding a write AT&T’s export sales to China—switch- stronger guarantee of job security as Boeing ciprocated, at least not for American work- ers. The contradiction is not quite as stark ing equipment that will modernize the phone globalizes more of its supplier base. systems in Qingdao and several other cities. ‘‘Ex-Im financing is corporate welfare with as the statistics make it appear, because the AT&T won the contract in head-to-head a fig leaf of U.S. jobs, and now they want to job shrinkage is more complicated than sim- competition with Canada’s Northern take away the fig leaf,’’ says Mark A. Ander- ply shipping jobs offshore. Some companies Telecom, Germany’s Siemens and France’s son, director of the AFL’s task force on eliminated masses of employees both at Alcatel Alsthom. The Clinton administration trade. ‘‘They want to be able to ship stuff home and abroad. Others, like Boeing, re- celebrated another big win for the home from Indonesia to China and use U.S. financ- duced payrolls primarily because global de- mand weakened in their sectors. Some jobs team. ing, I said to them, ‘You’re nuts. If you go But who actually won in this deal? A ahead with this, you’re going to be eaten were wiped out by labor-saving technologies and reorganizations. But virtually all of Telecom Publishing Group article provided a alive in Congress.’’’ different version of what AT&T’s victory George J. Kourpiss, president of the ma- these companies offloaded major elements of meant for the United States. ‘‘While some chinists’ union whose members make air- production to lower-cost independent suppli- equipment for AT&T’s network projects in craft at Boeing and McDonnell Douglas, and ers, both in the U.S. and overseas. If the jobs China will be built in this country,’’ the arti- jet engines at GE and Pratt & Whitney, put did not disappear, the wages were downsized. cle reported, ‘‘the Chinese are demanding it more starkly: ‘‘The American people This dislocation poses an important ques- that eventually the bulk of the equipment in aren’t financing that bank to take work tion, which American politicians have not their system be built in their country, the away from us. If the foreign content gets big- addressed. Does the success of America’s carrier [AT&T] said.’’ ger, then we’re using the bank to destroy multinationals translate into general pros- An AT&T public-affairs vice president, ourselves.’’ perity for the country or merely for the com- panies and their shareholders? The question Christopher Padilla, denies this, but then EXPORTS—JOBS is a killer for politicians—liberals and con- Padilla also denies that AT&T is prodding According to the government’s dubious servatives alike—because it challenges three the Ex-Im Bank to relax its foreign-content rule of thumb, each $1 billion in new exports generations of conventional wisdom. That’s rules. Further, he assures me that despite generates 16,000 jobs. By that measure, Bill why most Democrats or Republicans never their proximity, there was no explicit quid Clinton’s traveling salesmen brought home 2 ask it. pro quo and no connection between the two million good jobs. So why is there not great- When these facts are mentioned, the ex- transactions, the taxpayer-financed export er celebration? The first, most-obvious ex- porters retreat to a few trusty justifications. sales and AT&T’s agreement to build new planation is imports. Foreign imports First there is the ‘‘half a loaf’’ argument. factories in China. soared, too, albeit at a slower rate of growth, Yes, it is unfortunately true that companies ‘‘It’s a reality of the marketplace,’’ Padilla and so America’s trade deficit with other na- must disperse an increasing share of the pro- says. ‘‘If we tried to pursue a strategy of just tionals actually doubled in size under Clin- duction jobs abroad, either to reduce costs or making everything in Oklahoma City’’— ton, despite his aggressive corporate strat- to appease the foreign customers. But if this where the 5ESS switch is now manufac- egy. Thus a critic might apply the govern- were not done, there might be no export tured—‘‘we wouldn’t have any market share ment’s own equation to Clinton’s trade defi- sales at all and, thus, no jobs for Americans. at all.’’ cit and argue that there was actually a net Next, there is the ‘‘me, too’’ argument. All of The White House also led cheers for Boeing loss of 11 million good jobs. the other advanced industrial nations have because Boeing was also stomping its com- Bickering over the trade arithmetic, how- export banks that provide financing sub- petitors in the Chinese market. In 1994 alone, ever, does not get to the heart of what’s hap- sidies to their multinationals. The export Boeing sold 21 737s and seven 757s to various pening and what really bothers people: the banks in Europe do allow greater foreign Chinese airlines and obtained nearly $1 bil- specter of continued downsizing among the content than the U.S.—but only if the goods lion in Ex-Im loans to finance the deals. nation’s leading industrial firms. In fact, originate from an allied nation in the Euro- When President Clinton hailed the news, he globalization has created a disturbing anom- pean community. France supports German did not mention that Boeing had agreed to aly. U.S. exports multiply robustly, yet goods and vice versa, just as Michigan sup- consign selected elements of its production meanwhile the largest multinationals that ports California. The U.S. Ex-Im Bank, as work to Chinese factories. The state-owned do most of the exporting are shrinking dra- Mendelowitz has pointed out, actually pro- aircraft company at Xian, for instance began matically as employers. It’s important to vides greater risk protection and generally making tail sections for the 737, work that is note that about half of U.S. manufacturing charges lower premiums. normally done at Boeing’s plant in Wichita, exports comes from only 100 companies, and Japan’s Ex-Im bank is indeed more flexible Kan. The first order for Xian was for 100 sets, 80 percent from some 250 firms, according to than America’s, but Japan’s industrial sys- but that was just the beginning. In March Ex-Im’s executive vice president, Allan I. tem also operates on a very different prin- 1996, a China news agency boasted that Boe- Mendelowitz. The top 15 exporters—names ciple; major Japanese corporations take re- ing had agreed to buy 1,500 tail sections from like GM, GE, Boeing, IBM—account for near- sponsibility for their employees. That under- Chinese factories, both for the 737 and the ly one quarter of all U.S. manufactured ex- standing creates a mutual trust that allows 757. The deal was described as ‘‘the biggest ports. Yet these same firms are shedding both the government and the firms to pursue contract in the history of China’s aviation American employers in alarming dimen- more sophisticated globalization strategies. industry.’’ S10254 CONGRESSIONAL RECORD — SENATE September 11, 1996 Unlike AT&T and some others, Boeing is foreign production, or even offloading por- businesses lose out to foreign competi- relatively straightforward about acknowl- tions of the American industrial base? Amer- tion.’’ I want the NFIB to read these edging that it’s trading away jobs and tech- icans are told repeatedly that they cannot series of articles. nology for foreign sales. China intends to exercise any influence over these global Mr. President, referring just to one build its own world-class aircraft industry, firms, but that claim is mistaken. The Ex-Im and Boeing helps by giving China a piece of Bank is an important choke point in the bot- part, let’s start off with the first para- the action, relocating high-wage production tom line of these multinationals. Americans graph: jobs from America to low-wage China, as should demand that the subsidies be turned In early 1980’s when stainless steel knives, well as relocating some elements of the ad- off, at least for the largest companies, until forks and spoons suddenly surged into the vanced technology that made Boeing the the multinationals are willing to provide United States from Japan, South Korea and world leader in commercial aircraft. Boeing concrete commitments to their work forces. Taiwan in response to lowered tariffs and has told its suppliers to do the same. Nor- The gut issue is not about economics but cutthroat foreign prices, the domestic indus- throp Grumman, in Texas, is sharing produc- about national loyalty and mutual trust. try found itself in trouble. tion of 757 tail sections with Chengdu Air- ‘‘Every meeting we have in the union, we American producers, contending it was un- craft, in China. open it with the pledge of allegiance,’’ ma- fair competition, appealed to the United ‘‘What we’ve done with China,’’ says Law- chinists union president George Kouepias States trade commission to impose higher rence W. Clarkson, Boeing’s vice president muses, ‘‘Maybe the companies should start tariffs on imported flatware. The trade com- for international development, ‘‘we’ve done doing that at their board meetings.’’ mission is an independent Government agen- for the same reason we did it with Japan—to Mr. HOLLINGS. Just referring to the cy whose main job is to monitor the impact gain market access.’’ The two transactions— article, if you please, Mr. President, of the imports on the U.S. industries. If the ITC agrees with the complaint, the the export sales and job transfers—are le- and everyone ought to read this arti- gally separate but typically negotiated in presidentially appointed commissioners may tandem, Clarkson explains. China always in- cle, it says: recommend that duties be imposed. Even so, sists upon a written acknowledgement of the Globalization has created a disturbing there is no assurance that the duties will ac- job commitment in the export sales con- anomaly. While U.S. exports grow robustly, tually be assessed and, in most cases, they tract—the same sale to China submitted to the corporations that do most of the export- are not. The final decision rests with the the Ex-Im Bank for its financial assistance. ing are the busiest downsizers. White House which historically has refused Until recently, the Ex-Im Bank’s operative When they fire everybody, it is a po- to impose additional duties. policy on this issue could be described as lite word, that is just downsizing so After 5 months of study, the commission ‘‘don’t ask, don’t tell’’: The bank officials they are becoming more competitive. ruled on May 1, 1984, that stainless flatware was ‘‘not being imported into the United didn’t ask the companies if they were off- They are just, by gosh, getting rid of loading jobs, and the companies didn’t tell States in such increased quantities as to be them. When I asked various Ex-Im managers the United States worker and employ- a substantial cause of serious injury or the if they knew about AT&T’s new switch fac- ing the offshore worker. threat thereof to the domestic industry.’’ tories in China before they approved AT&T’s But I quote this particular sentence: On the contrary, the ITC held that the export financing their answer was no. What GE is a prime example because the com- ‘‘economic data on the performance of this about companies like Boeing doing similar pany is widely emulated in business circles industry failed to demonstrate the required deals? for its tough-minded corporate strategies. In degree of serious injury mandated by the ‘‘Yes, we’re aware of that,’’ Cruse says. It’s 1985, GE employed 243,000 Americans and 10 statute. Rather, the industry is doing rea- not that the companies tell us, but it’s not years later, only 150,000. GE became strong- sonably well.’’ hard to read the newspapers.’’ er, then executive Vice President Frank P. According to ITC findings, nine companies After prodding from labor officials, the Doyle said. But he conceded. We did a lot of produced flatware in the United States in bank last year began requiring exports to re- violence to the expectations of the American 1982. Today— veal whether they dispersed U.S. jobs or work force. Now listen, Mr. President— technology in connection with the Ex-Im-fi- Get that sentence, the vice president Today, most of them are either out of busi- nanced sales. But the federal agency still ap- of GE, when they cut down to 150,000 ness or purchasing flatware from foreign proves these deals without weighing the po- services. Except for two small plants, Onei- tential impact on future employment. In jobs, so-called downsizing, fired them. I da, Ltd., in Oneida, New York, there is vir- fact, Ex-Im still pretends that the export used to have five GE’s. I had one at tually no stainless steel flatware production sales and corporate decisions to relocate jobs Irmo. I have one still at Greenville in the United States. are unrelated transactions, though every which is doing well. I have one which company knows otherwise. was brought into Florence. It made cel- I could go down the list of commod- The practice of swapping jobs for sales is lular radios and now MRI’s. It has ities after commodities after commod- widespread in global trade—deals are nego- taken the business away from competi- ities, and you can see, Mr. President, tiated in secrecy because such practices os- where these companies are just moving tensibly violate trade rules. But everyone tors. But the one I had in Charleston has gone to Brazil. We are losing good the strength—it is not just jobs—it is knows the game, and most everyone plays it. moving the strength of the United If Boeing doesn’t swap jobs for Chinese sales, plants down there, and here is why: then its European competitor Airbus will. If ‘‘We did a lot of violence to the expec- States. When they get to national de- AT&T doesn’t move its switch manufactur- tations of the American work force.’’ fense, everybody comes out here on the ing to China, then Siemens or Alcatel will Mr. President, I ask that our col- defense authorization bill and votes (in fact, Alcatel already has). The cliche´ at leagues refer to the Philadelphia In- overwhelmingly on a defense appro- Boeing is ‘‘60 percent of something is better quirer of Monday, September 9, Tues- priations bill. But right to the point, than 100 percent of nothing.’’ day, September 10, and again today: they forget their history and how we The trouble is that nothing may be what got here and how we were able to main- many American workers wind up with any- Endangered Label ‘‘Made in the United way—especially if China eventually becomes States.’’ tain and sustain the strength of the a world-class aircraft producers itself. Offi- It is a wonderful article of how we greatest superpower. cials at the Communications Workers of are losing our industrial backbone, how Mr. President, we are the last re- America, which represents AT&T workers, small businesses lose out to foreign maining superpower. Look at them run recall that Ma Bell once made all its home competition. all around. The atom bomb, the nu- telephones in the U.S. and now makes none I was asked at the Chicago conven- clear bomb cannot be used—should not here. tion, Mr. President, ‘‘Senator, you be used. We do not have the manpower Is the same migration under way now for that the People’s Republic of China has the high-tech switches? The AT&T spokes- Democrats, why don’t you all do some- man insists not. Anyway, he adds the assur- thing for small business?’’ and others have that are coming along ance that the most valuable input in these I said, ‘‘Oh, no, that small business now and are going to build up their switches is the software, not the hardware crowd is organized by the National military strength. And they do not from the factories, and the design work is Federation of Independent Business.’’ I care anymore about the 6th Fleet com- still American. This may reassure the have won recognition and awards from ing in to protect them. techies, but it’s not much comfort to those that group, but, generally speaking, The name of the game is the eco- who work on the assembly lines. Besides, they are not for the small business on nomic warfare, and the great super- AT&T plans to open a branch of Bell Labora- this particular score, they are talking power—and if you read Eamonn tories in China. The dilemma facing American multi- about free trade, free trade as retailers Fingleton’s book—‘‘Blindside’’ is the nationals is quite real, but the question re- to make a bigger profit. title of that book—you will find that mains: Why should American taxpayers sub- I thank the wonderful Philadelphia within 4 short years, the largest eco- sidize export deals contingent on increased Inquirer. This is the headline: ‘‘Small nomic power in this world will be the September 11, 1996 CONGRESSIONAL RECORD — SENATE S10255 country of Japan. Already they are a sales tax involved, and everything else, protectionism, protective quotas that I larger manufacturer. Here is a little all the taxes, and I ship it to Paris, support under Roosevelt to rebuild place not bigger than California, with France. If I manufactured this desk in from the darkness of the Depression. 125 million compared to our 260 mil- Paris, France, they put on a value With Eisenhower, oil import quotas, we lion, and vast resources, with oil and added tax of 15 percent, but when it have used protectionism. So do not all the natural wealth that we have leaves the port of Le Havre to come come here and give me ‘‘Smoot-Hawley here, all the talent, all the research here to Washington, they deduct the 15 protectionism. Are you for free trade?’’ and everything else, and they produce percent. That is a 15 percent disadvan- And everybody running around like more in Japan today, manufacturing, tage to a manufacturer in the United children, hollering, ‘‘There’s no free than the United States of America. States of America, and we need the lunch. There’s no free trade.’’ I yield Economically, their GNP, their produc- money. the floor. tivity, will be greater than that of the The Budget Committee, eight of us, Mr. MOYNIHAN. Mr. President, United States. Their per capita income, bipartisan, in 1987, voted to get on top under the amendment of my friend right now they are richer than we are. of this monster with a value added tax from North Dakota, U.S. corporations We cannot get into their markets. We allocated to the deficit and the debt. or individual investors that own 10 per- still, as a result of the fifth column, But these pollster-politicians running cent or more of the stock of a U.S.-con- keep saying ‘‘free trade, free trade, around, ‘‘I’m against taxes, I’m against trolled foreign corporation would be Smoot-Hawley, Smoot-Hawley.’’ We taxes, I’m against taxes; I’m going to taxed currently on the foreign corpora- are losing our shirts. We are losing our give you a 15 percent tax cut,’’ when we tion’s profits when it sells goods back shirts. are broke in the Government. Growth, into the United States. Under present By the year 2015, the People’s Repub- growth, growth—there is no education law, such profits are not taxed by the lic of China will come along. They are in the second kick of a mule. United States at the time earned. In- producing economically. I just visited How do you think this got up to a stead, taxation is deferred until the there in April, and I think they are $5.23 trillion debt? We never got to $1 foreign corporation’s earnings are repa- going capitalistic. I think it will suc- trillion until Ronald Reagan came to triated, that is, returned to its U.S. ceed. I hope. And we have our fingers town with Kemp-Roth. And he de- shareholders in the form of dividends crossed it will succeed. bunked it. Senator Bob Dole debunked or gains on the sale of their stock. In What do we need to do? We need to it. Howard Baker called it a ‘‘riverboat many cases, the sole U.S. shareholder really start enforcing our laws on the gamble.’’ George Walker Herbert Bush, of a foreign corporation is the parent books. Get rid of the International President Bush, called it ‘‘voodoo.’’ corporation. In other cases, several Trade Commission. You can see the po- But now we have a party running for U.S. corporations or investors own the litical cabal that comes in any time national office on voodoo. When are we foreign corporation. they appoint a member. They have to going to learn and sober up? The premise underlying this proposal swear on the altar of free trade, al- The Dorgan-Hollings amendment is a is that plants are being moved abroad mighty allegiance, and everything else wakeup call here to the reality of the for tax reasons. While this is a fair before they go over there. That is a big greatness of this Nation. Historically, topic for examination, I do not believe part of the fifth column. We have to we had this in the very earliest days. this has been established with any cer- quit financing. David Ricardo in ‘‘The Doctrine of tainty, and before the current rules are We have to actually someday repeal Comparative Advantage.’’ They came changed it must be. Investment abroad that GATT, World Trade Organization. to Alexander Hamilton and James that is not tax driven is good for the We lost our sovereignty. In the Kodak Madison and Jefferson, because they United States. It promotes exports and case, we found out, Mr. President, we all joined in with Hamilton. The Brits enhances the competitiveness of our found out that we lost our sovereignty said, when we won our freedom in this companies. because the Japanese said, ‘‘Go to the little fledging nation, they said, The evidence suggests that the deci- WTO,’’ instead of really enforcing what ‘‘Look, you trade with what you sion to locate production abroad pri- we said on the floor of the Senate. produce best, and we’ll trade back with marily depends not on tax consider- They said, ‘‘Oh, no, we’re not going to what we produce best’’— ‘‘The Doctrine ations, but instead on practical busi- do away with section 301.’’ The Japa- of Comparative Advantage,’’ economics ness considerations, such as proximity nese have said, ‘‘You have already done 101, David Ricardo. to raw materials, access to distribution away with it when you signed up.’’ Alexander Hamilton wrote a little channels, lower wage rates, prospects You get these emerging nations and booklet, ‘‘Reports on Manufacturers.’’ for growth, regulatory climate and you see how they vote. Back in April It is over at the Library of Congress. other nontax factors. Taxes are cer- we had these particular human rights Do not read the entire booklet, but in tainly taken into account, but they are violations in the People’s Republic of one word he told the Brits, ‘‘Bug off.’’ not the predominant factor, since the China. We brought it up at the United He said, ‘‘We are not going to remain bulk of U.S. direct investment in for- Nations. The United Nations voted to your colony and just ship our agricul- eign countries is in countries with ef- have a hearing on it. Our friends at the tural products, our iron, our timber, fective business tax rates in excess of, People’s Republic went down into Afri- our coal. We are going to be a Nation- or comparable to, the United States. ca; they picked up the emerging na- State, and we are going to manufac- Over 70 percent of assets held by tions’ votes, and they said human ture, we are going to manufacture and United States-owned foreign manufac- rights was a nonissue. They have not produce our own products.’’ turers are held in high-tax jurisdic- even had a hearing. That is politically When they talk of tariffs, the second tions, such as Canada, the United King- how that U.N. crowd works. When are bill—the first bill had to do with the dom, Japan, Germany, France, Italy, we going to wake up in this land of seal—the second bill that passed this Belgium, and Australia. In contrast, ours and not understand the fifth col- great Congress that we stand in, on the two low-tax jurisdictions most umn working against the American in- July 4, 1789, I say to the Senator from often cited as having runaway plants— dustrial worker? Nebraska, the second bill that we ever Ireland and Singapore—have only 4.2 So we need more customs agents. passed was a tariff bill of 50 percent on percent of the total assets held by And, yes, Mr. President, we need the 60 articles going right on down the list. United States-owned foreign manufac- Dorgan-Hollings measure to cut out We built the greatness, the economic turers. Furthermore, excluding Can- these subsidies of tax deferrals for strength, this economic giant, the ada, only 7.2 percent of total sales by those who are induced with incentives United States of America, with protec- United States-owned foreign manufac- to go abroad and make more money. tionism. turers were to the United States mar- We need to change our tax laws, a We did it with Lincoln when we built ket in 1990, with over 60 percent to value added tax. the steel mills for the transcontinental local markets and the remainder to If I manufacturer this desk in the railroad. We came to Nebraska under other foreign countries. Finally, ac- State of South Carolina, I have to pay Roosevelt and said, for agriculture, we cording to the Departments of Treas- the income tax, the corporate tax, the are going to put in price supports and ury and Commerce, less than 15 percent S10256 CONGRESSIONAL RECORD — SENATE September 11, 1996 of total imports from U.S. affiliates Finally, this proposal conflicts with As I understand the amendment, it is came from low-tax countries. Thus, the the intent of the Multilateral Agree- based on S. 1597, which the Senator weight of the evidence indicates that, ment on Investment of the from North Dakota introduced this at most, taxes appear to affect invest- Organisation for Economic Co-oper- past March. This bill would deny what ment decisions only where the investor ation and Development [OECD]. Since my friend from North Dakota calls un- is relatively indifferent between two 1991, the United States has been work- warranted tax breaks to U.S. compa- locations. ing toward a legally binding com- nies that set up manufacturing oper- Would this amendment be effective prehensive investment agreement in ations in a foreign country and export in keeping production in the U.S.? It is the OECD. In May 1995, the OECD goods from those operations back into hard to imagine that it would alter Council finally agreed to negotiate a the United States. many decisions to locate plants abroad. Multilateral Agreement on Investment. In the floor statement that accom- Those producing goods abroad for the The objective of the United States in panied the introduction of S. 1597, the U.S. market would continue to do so those talks is to reach agreement that Senator from North Dakota implies for practical reasons, and simply face will set high standards for liberalizing that a large number of American com- higher taxes. For example, the proposal investment rules and increasing invest- panies are abandoning U.S. soil and re- would apply to a U.S.-owned company ment protection. The idea is to make moving their operations, lock, stock, that grows bananas abroad and imports foreign investing safer for U.S. compa- and barrel, to other locations on the them into the United States, even nies because U.S. investment overseas globe where they can find cheaper though there are virtually no produc- promotes exports and enhances the labor and lower taxes. As a result, goes ers of bananas in the United States. As competitiveness of our companies. For- the argument, American jobs are being a result, the bill would have a negative eign subsidiaries of U.S. companies are lost in the process. And, according to impact on many businesses that would the primary customers for U.S. ex- the Senator from North Dakota, to add not be economically viable in the Unit- ports—over one-fourth of U.S. exports insult to injury, our tax code is reward- ed States, or for which locating produc- go to them each year. Those exports ing such behavior with special tax tion in the United States would be im- account for more than 2 million of the breaks. practical. At the same time, the vast 8 million U.S. jobs supported by U.S. S. 1597, and the amendment before us, majority of U.S. businesses with for- exports. The proposal before us goes in is designed to end what he calls unwar- eign subsidiaries would not be greatly exactly the opposite direction of our ranted tax breaks and punish those affected by the proposal because their efforts in the OECD. supposedly unscrupulous companies foreign operations do not produce for I am committed to doing everything that are allegedly taking unfair advan- the U.S. market. Over 90 percent of all possible to ensure that the U.S. econ- tage of the rules to gain profit for sales by United States-owned foreign omy remains strong, that decent jobs themselves at the expense of American manufacturers located outside of Can- are available to those that seek them, workers. ada are to foreign markets. and that American workers dislocated Well, Mr. President, at first blush, From the standpoint of competitive- by the increasingly global economy are who wouldn’t be in favor of cracking ness, other countries typically do not assisted in finding new opportunities. down on such awful practices and un- require their taxpayers to pay tax cur- However, I believe the opening of pro- fair tax breaks? rently on the earnings from operations duction facilities abroad is often good The only problem is that the scenario conducted abroad by a foreign subsidi- set out by the Senator from North Da- ary. U.S.-owned businesses must com- news, not bad, and that this amend- ment would not accomplish its stated kota does not reflect what is going on pete against foreign-owned businesses in the real world. It is an oversimplis- that are located in low-tax jurisdic- purpose. tic solution to a misidentified problem. tions and are not taxed currently by I hope we will not act improvidently on this important matter, and I there- In the world as oversimplified by the their home countries. It is unlikely proponents of this amendment, U.S. that many of our major trading part- fore urge that this amendment not be companies are abandoning loyal Amer- ners would respond to enactment of adopted. ican workers to save a few dollars an this amendment by imposing current Mr. HATCH. Mr. President, I rise hour with cheap overseas labor in tax taxation on their companies. today in opposition to the amendment Administrability of the amendment from the Senator from North Dakota. haven countries. In the real world, Mr. of the Senator from North Dakota is Mr. President, this is another one of President, this is simply not the case. also a concern. Under the legislation, those amendments that sounds so easy, At least two-thirds of the investment U.S. shareholders would be taxed cur- so simple, and so straightforward, that and sales of foreign subsidiaries of U.S. rently not only on the profits from im- it seems that every member of this companies are in countries where the ports into the United States, but on body should be immediately jumping average labor cost is higher than in the the foreign corporation’s income from up on his or her feet and agreeing with United States. Moreover, the average sales to third parties that import the what the distinguished Senator from tax rate paid by U.S. multinational goods into the United States, if it was North Dakota is saying. I only wish our companies is lower in the United reasonable to expect that such prop- world were as simple and the problems States than it is outside the United erty would be imported into the United so easy to solve as the proponents of States. More than 75 percent of all im- States, or used as a component in other this amendment would have us believe. ports to the United States from U.S.- property which would be imported into However, today’s world is not very owned foreign subsidiaries is from de- the United States. simple, especially when we are discuss- veloped nations, where taxes typically Staff at the Treasury Department ing the world of international business are either higher than or similar to the and the Joint Committee on Taxation and the tax law. Unfortunately, the as- U.S. rate. have raised questions about the admin- sumptions upon which this amendment While it is true that some U.S. com- istrative feasibility of enforcing the are based are just plain wrong and the panies have set up manufacturing oper- provision in the case of foreign cor- result will be to punish companies for ations in other countries with lower porations selling outside the United looking out for the best interests of labor costs, they have generally done States to a third party importer. It their employees and stockholders. so in order to stay competitive with would be very difficult for the IRS to First, let me make it clear, Mr. other companies in the same industry identify those sales to third parties President, that I have no doubt that that have cheaper labor costs. triggering taxation because the prod- the Senator from North Dakota and his We live in a global economy, Mr. ucts are destined for the U.S. market, supporters are very sincere in their be- President. Many products, especially particularly given that many tax- liefs about this issue, and that the those in the high technology indus- payers could be expected to restructure amendment is well intentioned. How- tries, can be as easily assembled in Ma- their U.S. sales via third parties in an ever, based on the real world that we laysia as in California. When U.S. com- attempt to avoid the provision. Fur- live in, the amendment is both unnec- panies have taken their low-skill as- ther, the recordkeeping required of tax- essary and will prove to be counter- sembly operations overseas, they have payers could be onerous. productive. done so as a matter of survival. In September 11, 1996 CONGRESSIONAL RECORD — SENATE S10257 other words, any jobs lost to Ameri- sembly operations overseas is per- ready mind-numbingly complicated cans by a move of an assembly plant formed right here in the United States. part of the Internal Revenue Code. The overseas would most likely have been Let’s look again at the software indus- determination of ‘‘imported property lost anyway—and probably then some. try, which is very important to my income’’ as required by the amendment Companies that go out of business be- home state of Utah. Additional sales in would require a whole new set of as- cause they are no longer competitive foreign countries, generated by subsidi- sumptions and recordkeeping, all of pay no wages and create no new jobs aries of U.S. software companies, lead which adds to the huge compliance bur- and pay no taxes. Companies that can to increased employment in the United den already faced by all taxpayers. successfully compete in the world mar- States to support those sales and to Moreover, the Internal Revenue Serv- ketplace most often expand employ- continue the research necessary to im- ice would have to add more trained per- ment, add security to U.S. workers, prove those products. sonnel to audit this provision, and this and contribute to the U.S. tax base. Now, Mr. President, let’s discuss just at a time when Congress and the Amer- In the world as oversimplified by the exactly what this amendment would ican people are demanding cuts in IRS proponents of this amendment, U.S. do. At the heart of the so-called tax funding. The provisions in the amend- companies are moving their manufac- break that the Senator from North Da- ment calling for a new foreign tax cred- turing operations to other countries, kota is trying to partially eliminate is it basket would also add more complex- only to export the majority of the the long-standing tax principle that ity and unfairness from possible double product back to the United States. In says a taxpayer doesn’t have to pay tax taxation. The administrative expenses the real world, Mr. President, again, on income until that income is re- of complying with these provisions this is simply not the case. In 1993, 66 ceived. One example of this concept could easily outweigh the amount of percent of the sales of U.S. foreign sub- that individuals run into every day is revenue collected from this amend- sidiaries were made to customers in the fact that we do not have to pay ment. the foreign country, 23 percent were taxes on unrealized capital gains on Finally, Mr. President, this provision made to customers in other foreign property until we sell that property. is not likely to achieve its goal of re- countries, and only 11 percent were ex- For instance, if a taxpayer holds 100 taining U.S. jobs. Many countries with ported back to the United States. shares of stock that he or she bought 20 wages lower than those in the United These data show that one of major years ago at $10 per share, and that States also have high corporate income real-world answers as to why U.S. com- stock is now worth $100 per share, our tax rates. Loss of deferral in these panies set up manufacturing operations tax code does not tax that individual countries would not result in any extra overseas is to be closer to their cus- until he or she actually sells the stock U.S. tax liability because the U.S. tax tomers. Many customers demand a and realizes the gain. would be offset with the foreign tax local presence of their supplier. More- We have a similar principle in place credit for income taxes paid in the for- over, as a practical matter, local condi- that applies when a U.S. company sets eign country. Additionally, because tions often dictate that the U.S. com- up a subsidiary in another country. this amendment does not affect the pany manufacture locally in order to Under the tax law, with some excep- major reason that U.S. companies es- be able to take advantage of the busi- tions, the U.S. company does not have tablish foreign subsidiaries, which as I ness opportunity in that country. For to pay tax on the earnings of the for- mentioned is to be closer to its cus- example, how could U.S. software man- eign subsidiary until the money is ac- tomers, this change would only punish ufacturers sell their products abroad tually returned to the U.S. parent. companies that try to better compete without local operations to customize This principle is commonly known as in a world market. These firms will and service the software? We have seen deferral because the tax is deferred still take whatever action is necessary the same thing happen in the United until the earnings are repatriated to to compete globally. But, if the U.S. States, where foreign automobile man- the United States, much the same as begins to punish them for being respon- ufacturers have moved their operations the tax is deferred to an individual on sive to world competition and for tak- here in order to be closer to their mar- a capital gain until the sale is accom- ing advantage of international business kets. plished and the gain is realized. opportunities, the result might be that Contrary to what the Senator from What the amendment before us would some companies could move all oper- North Dakota is asserting, there are do is to end deferral to the extent that ations out of the United States to re- often a number of benefits to the do- income is earned on goods shipped back duce the onerous results of this amend- mestic job market when a U.S.-based into the United States. What, one ment. At the very least, the increased multinational company sets up a sub- might ask, is wrong with this? cost of complying with these unneces- sidiary in a foreign country. The 1991 Wouldn’t this be effective in prevent- sary provisions would leave less money Economic Report of the President ing U.S. companies from uprooting available for companies to expand and notes that ‘‘. . . U.S. direct investment their domestic manufacturing oper- create more U.S. employment. abroad stimulates U.S. companies to be ations and moving them overseas? In the real world, Mr. President, mul- more competitive internationally, Mr. President, I submit that there tinational companies are making busi- which can generate U.S. exports and are several major problems with this ness decisions based on a number of jobs. Equally important, U.S. direct in- proposal and that it would not be effec- economic factors, only one of which is vestment abroad allows U.S. firms to tive. Indeed, I believe this proposal the tax consideration. This amendment allocate their resources more effi- would be counterproductive and result tries to simplify a complex world and ciently, thus creating healthier domes- in fewer U.S. jobs. The amendment solve a problem without realizing the tic operations, which, in turn, tend to goes way beyond the problem being de- real causes of the problem. As a result, create jobs.’’ scribed and applies where there is no the solution doesn’t fit and it simply I would also note, Mr. President, that indication of alleged abuse. For one will not work. the overseas business operations of thing, there is no provision in the As a final note, Mr. President, it is U.S.-based multinational companies amendment to limit the loss of deferral important to note that this amend- contributed a record net surplus of $130 to those situations where actual U.S. ment does not belong on this bill. As billion in 1990 to our balance of pay- employment has been displaced. In- my colleague from North Dakota well ments. This number has very likely deed, the amendment doesn’t even re- knows, this is a tax provision that can gone even higher in the years since quire that there be a showing of in- only be considered, under the U.S. Con- 1990. In addition, these U.S.-based mul- creased foreign investment or reduced stitution, on a revenue measure origi- tinational companies have been respon- U.S. employment. Thus, any U.S. com- nating from the House of Representa- sible for significant employment in the pany with existing foreign operations tives. The underlying appropriations United States. Much of this employ- could be penalized, even if no U.S. bill is not such a measure. Therefore, if ment is generated by the foreign oper- plants closed and even if the U.S. em- the Senate were to make the mistake ations of these corporations. For exam- ployment actually increased. of passing this measure, the House ple, in most cases, the research and de- In addition, this amendment would would undoubtedly exercise its prerog- velopment work that leads to the as- add a great deal of complexity to an al- ative and send this bill back to the S10258 CONGRESSIONAL RECORD — SENATE September 11, 1996 Senate under the so-called ‘‘blue slip″ No one can doubt the importance of burden them with more government procedure. This, of course, would only the global economy to American jobs regulations and taxes. delay in getting an important appro- and American economic strength. If we There are several mistaken premises priations bill passed. are to provide good jobs for our citi- in this amendment, and I would like I urge my colleagues to oppose this zens, it is important that we stay com- briefly to address some of them. perhaps well-intentioned but seriously petitive. Already, current tax rules cre- First of all, the amendment’s under- misguided amendment. ate a disadvantage for U.S. businesses lying premise is that when American Mr. SHELBY. Mr. President, I sug- that operate overseas and compete in companies open factories, plants and gest the absence of a quorum. foreign markets. Recent data dem- offices overseas, they reduce American The PRESIDING OFFICER. The onstrate that U.S. multinationals are jobs. That’s simply not true. U.S. firms clerk will call the roll. already taxed more heavily on their establish operations abroad primarily The legislative clerk proceeded to foreign income than on their domestic in order to penetrate foreign markets call the roll. income. The current U.S. Tax Code has and take advantage of foreign business Mr. GORTON. Mr. President, I ask a strong bias against U.S. multination- opportunities. In many cases, U.S. unanimous consent that the order for als. Its sourcing rules and strict limita- manufacturers cannot sell to foreign the quorum call be rescinded. tions on foreign tax credits expose the customers unless they have local The PRESIDING OFFICER. Without foreign investments of U.S. companies plants in those foreign countries. For objection, it is so ordered. to double taxation. It also gives less fa- example, under the Canadian auto Mr. GORTON. Mr. President, this vorable treatment to foreign affiliates pact, United States companies must amendment is bad policy from top to by making them ineligible for the R&D manufacture in Canada to export into bottom. If enacted, it would hurt U.S. tax credit or accelerated depreciation, the Canadian market. Without United companies and destroy jobs. It is, I am and denies them the ability to include States operations in Canada, the Unit- afraid, motivated more by political losses in the U.S. parent’s consolidated ed States would lose the current $44 considerations than anything else. income tax return. Current law does billion of sales in Canada. Were that to Under generally accepted tax prin- not, as the sponsors of this amendment happen, the consequences to America ciples in the United States and around assume, reward U.S. corporations with would be serious indeed—not only in the world, income is taxed when it is offshore operations. terms of economic damage, but in realized by a taxpayer. When income is Clearly, imposing more taxes on terms of lost jobs —American jobs—as earned but not received until some fu- American companies weakens U.S. well. ture date—say, for example, income in international competitiveness, hurts Another misperception is that Amer- a pension plan or an individual retire- American companies and American ican companies move their operations ment account—then taxation is nor- jobs, and gives our foreign competitors overseas so that they can procure mally deferred. a greater advantage—just the opposite cheap labor. Again, not so. Most multi- Eliminating or even limiting defer- of what the amendment’s sponsors say national companies’ foreign invest- rals would put American companies at they want. ments are in other industrialized coun- a competitive disadvantage in the glob- Not only will this amendment in- tries where labor costs are often higher al marketplace. This amendment does crease direct taxes on U.S. companies, than in the United States. In 1993, two- not—as it purports to do—eliminate a it will also increase regulatory costs thirds of the assets and sales of United privilege; rather, it imposes a penalty, associated with compliance and en- States-controlled foreign corporations and a severe one at that. It will not in- forcement. The proposal will add enor- were in seven countries: the United crease revenues for the U.S. Treasury. mous complexity to the already oner- Kingdom, Canada, France, Germany, It will, however, hurt American compa- ous and complicated U.S. Tax Code in Japan, the Netherlands, and Switzer- nies that are trying both to run their the area of international taxes. The land. The average annual compensation day-to-day operations and to compete changes will be difficult for businesses paid by these corporations in 1993 was with foreign businesses. to comply with and virtually impos- $49,005, 15 percent higher than the aver- What does this amendment do? It as- sible for the IRS to administer and en- age $42,606 compensation paid in the sumes that allowing U.S. multination- force. For example, a U.S. multi- United States. U.S. firms do not go als to defer taxes on the income of national may manufacture a compo- abroad for cheap labor, they go abroad their foreign subsidiaries is a tax nent—say, a computer chip —that because their business demands it. For break. That is a false assumption, be- eventually finds its way into a finished example, industries that rely on natu- cause deferring only means that taxes product that is ultimately imported ral resources must develop them in the are not due until the time that income into the United States by a foreign geographic locations in which those re- has actually been received, or in the company, without the U.S. multi- sources are found. case of multinationals, repatriated national’s knowledge or consent. The This amendment also assumes that back to the U.S. parent company. This IRS, in this case, would have to trace overseas operations cost U.S. jobs. amendment not only taxes income be- potentially long chains of unrelated Wrong again. American operations fore it is realized, it carries with it the parties that may alter a product or in- overseas produce American exports. potential to tax income that is never corporate it into another product in Exports support and create American realized at all. order to enforce the requirements of jobs. Consider this: The Department of Since none of our trading partners this proposal. Similarly, businesses Commerce has calculated that every $1 subject their companies to such a bur- would have to employ complicated and billion dollars in manufactured exports den, our companies would suffer. No tedious procedures to determine if creates—directly—14, 313 manufactur- other country in the world denies de- their products could potentially ever ing jobs in the United States Clearly, ferral on active business income as ex- be imported back into the United U.S. companies that have operations tensively as the United States, now, States. That, Mr. President, is just one overseas are a benefit to, not a detrac- with respect to passive income, for ex- reason that proposals like this need tion from, American jobs and the ample. According to a 1990 white paper careful study by the Finance Commit- American economy. submitted by the International Com- tee, not an instant debate on the floor. The amendment incorrectly assumes petition Subcommittee of the Amer- This amendment means more taxes, that U.S. companies invest offshore to ican Bar Association Section of Tax- more regulations, and more power to export back to the U.S. market. But a ation to congressional tax writing com- the IRS—powers which, I can assure look at the facts shows the reverse. In mittees, France, Germany, Japan, The my colleague, the country hardly 1993, 66 percent of U.S. multinational Netherlands, and others, do not tax do- needs. sales were within the foreign company mestic parent companies on any earn- Today, U.S. companies face intense of incorporation, 23 percent of sales ings of their foreign marketing subsidi- competition in both domestic and went to other foreign locations, and aries until such earnings are repatri- international markets. Nothing can be only 11 percent represented exports to ated. The earnings are deferred without worse for our companies struggling to the United States. If anything, multi- additional tax penalties. compete in the global economy than to nationals are boosting the U.S. trade September 11, 1996 CONGRESSIONAL RECORD — SENATE S10259 balance. According to 1993 Commerce products. I am a competitor and I want Then if we haven’t done anything else, Department data, U.S. multinationals to see the United States win at all I say to the Senator from North Da- decrease the trade deficit by $11.5 bil- costs. kota, we have at least awakened them, lion per year. However, when we debated our tex- given them a wakeup call for what is I must say that it’s too bad the spon- tile bills and I passed one vetoed by going on, because it’s going to happen sors suspect the worst motives in our President Carter, two vetoed by Presi- in Washington and in Wichita, KS, American companies, rather than sup- dent Reagan, one vetoed by President where they make the wonderful planes porting them as they look for new op- Bush, get them to pass it, keep knock- we are so proud of. But they are going portunities to boost the American ing on the door, I kept watching our to be losing the jobs. Airbus is taking economy and create new jobs in the colleagues from the State of Washing- over. I opposed the Ex-Im contract United States. ton who opposed us with the free trade, with Japan. Wait until the Japanese While few would disagree with the and how wonderful to have trade over- and Chinese start manufacturing air- stated goals of this amendment—pre- seas, which nobody denies. Everybody craft. Then I want to see this crowd venting U.S. job loss and encouraging believes in trade. Instead of abolishing here. We will come in coveralls when U.S. competitiveness—it is clear that the Commerce Department, I am stand- we can’t afford decent clothing, holler- in practice this amendment would have ing on this side of the aisle trying to ing ‘‘free trade, free trade, free trade.’’ exactly the opposite effect. Let’s call a defend commerce and to defend the de- This country is going out of business. spade a spade. This is not a proposal to partment and trying to defend trade. We need to wake up. These are the stimulate employment or to strength- But what you have to do is emphasize kinds of things to debate. Let’s take en America’s position in the inter- this flow of imports into the United that Dorgan-Hollings amendment and national arena. It is a protectionist, States and find out why. vote it up, and don’t say this is an antitrade measure that attempts to ex- Let me read from this article one lit- amendment against trade. This is just ploit the fears and insecurities that tle paragraph about Boeing. In the ar- an amendment to put the foreign man- Americans feel today due to the real ticle, ‘‘The Ex-Im Files,’’ by William ufacturer on the same basis as Amer- degree of economic uncertainty. But Grieder. It was previously printed in ican manufacturers for American cor- the American economy is not being the RECORD: porations. hurt by U.S. trade or by U.S. busi- The White House also led cheers for Boeing I yield the floor. nesses expanding their presence over- because Boeing was also stomping its com- Mr. DORGAN addressed the Chair. seas. Rather, trade and overseas invest- petitors in the Chinese market. In 1994 alone, The PRESIDING OFFICER. The Sen- ment strengthen and expand our econ- Boeing sold 21 737s and seven 757s to various ator from North Dakota is recognized. omy. Chinese airlines and obtained nearly $1 bil- Mr. DORGAN. I will not further delay When American businesses go over- lion in Ex-Im loans to finance the deals. this, with the exception of making two When President Clinton hailed the news, he seas, it is a sign of American economic did not mention that Boeing had agreed to points. I was off the floor. My under- strength and expanding opportunities. consign selected elements of its production standing is that a couple of points were It means that American companies are work to Chinese factories. The state-owned made in opposition to this legislation competitive throughout the world. We aircraft company at Xian, for instance began that I want to respond to. One is that should be happy to see our companies making tail sections for the 737, work that is this would prevent an American com- doing so well, instead of fearing inter- normally done at Boeing’s plant in Wichita, pany from establishing offshore pro- national growth. We are the world’s KS. The first order for Xian was for 100 sets, duction with which to compete against economic superpower, and should be but that was just the beginning. In March a foreign company that is producing 1996, a China news agency boasted that Boe- encouraging international development ing had agreed to buy 1,500 tail sections from offshore and selling in some foreign and promoting trade, not discouraging Chinese factories, both for the 737 and the country. This bill doesn’t affect that at it as this amendment does. 757. The deal was described as ‘‘the biggest all. If you are opposed to this bill for The entire argument of the Senator contract in the history of China’s aviation that reason, smile; this bill doesn’t af- from South Carolina can be summed up industry.’’ fect that. This bill only affects U.S. by one of his own lines: ‘‘This country Now, Mr. President, one, that is in producers who move offshore to is going out of business.’’ violation of the Export-Import Bank produce for the purpose of sending the If you believe that statement, then law. So it is not partisan guilt or li- production back into our country. That support this amendment and every ability or misunderstanding. The Presi- is the only purpose. other protectionist idea that comes dent of the United States, hailing it Second, this would be enormously down the pike. But if you believe, as I under the Export-Import Bank, is for complex, we are told. A wonderful arti- do, that we are the most successful and production in the United States, not to cle was written by Lee Sheppard re- competitive economy in the world and finance production in China. You ask cently. She says something about that. with the most free and fair competi- what to do, how to wake them up. She wrote: tion, vote with me and table this ‘‘Free trade, free trade. It is wonderful Complexity never seems to bother cor- amendment. for trade and you don’t lose jobs and it porate tax managers when it flows in their And one other point in reflection of is good for the economy.’’ Here are the favor, such as in transfer pricing or the de- the Senator from South Carolina: Boe- facts. As I warned 25 years ago, or al- sign of nonqualified deferred compensation plans. Surely no one wants to add materially ing believes that the Chinese commer- most 30 years ago, in that debate, I to the complexity of America’s already com- cial aircraft market over the next 20 said, wait until it hits you. plex foreign tax provisions, though no one is years will reach $185 billion. Obviously, Last year, to Mexico we lost 10,000 seriously suggesting simplifying them in it will go to those suppliers who will textile jobs. We said in the NAFTA de- business’s favor. The Dorgan bill proposes a allow some of the work to be done in bate that we were going to lose them. destination-based tax liability; other provi- China. As Larry Clarkson, Boeing’s top Now we know from NAFTA, we have sions, like the foreign sales corporation pro- official for international development gone from a plus balance of $5 billion visions, grant destination-based benefits. says: ‘‘If we hadn’t moved work to exports, exports, exports—how about My point is that those who stand up China, we wouldn’t have gotten or- the imports?—to a deficit of $15 billion. and use the corporate arguments being ders.’’ And those who oppose us will admit we offered around town in ample quan- I think he knows more about have lost at least 300,000 jobs. tities are using arguments that largely Boeing’s business than the Senator Point: Boeing is having it happen to don’t apply to this. So, as I said pre- from South Carolina—and Boeing is them. If you are going to lose your tex- viously, if you believe our Tax Code now hiring—in the United States. tiles, you are going to lose your flat- ought to be neutral on the question of Mr. HOLLINGS. Mr. President, the ware, you are going to lose your steel whether you export American jobs, just people of the Republic of China charac- industry, your manufacturers and in- to make it neutral, then vote for this terize me as the ‘‘Senator from Boe- dustrial strength. You are going to lose amendment. If you believe we should ing.’’ I realize that the French airbus one thing we are preeminent in, air- continue doing what we are doing, sub- was competing with us, and we are plane manufacturing, and finance it in sidizing the export of jobs, then vote proud of Boeing and we are proud of its violation of the Export-Import Bank. against the amendment, and then let’s S10260 CONGRESSIONAL RECORD — SENATE September 11, 1996 have a further discussion at some later American companies would also be this amendment, the Dorgan amend- point. I hope Members of the Senate hurt in their efforts to expand in for- ment, if accepted, would potentially will decide to support this. eign markets. subject the entire bill, including fund- With that, I yield the floor. Our companies are motivated to in- ing for drug enforcement, law enforce- Mr. ROTH. Mr. President, this tax vest abroad in order to penetrate mar- ment, to a blue slip. This would effec- amendment is not appropriate at this kets otherwise commercially inacces- tively kill the entire bill and, with it, time. sible to American firms and then ex- funding for critical priorities such as This appropriations bill is not a reve- pand that market share. the drug czar, drug enforcement, Cus- nue bill. If this amendment passes, this The absence of American companies toms, border guards, ATF, Secret Serv- appropriations bill will be potentially abroad would limit our ability to sell ice, White House, IRS, civil service subject to a blue slip by the House. A to foreign customers. pensions, and so forth. blue slip would in effect kill this bill There is a positive relationship be- The Senator from North Dakota and the Senate would have to start tween investment abroad and domestic raises an important issue, and it ought anew. expansion. to be debated and considered by the ap- Therefore, a tax amendment at this Leading American corporations oper- propriate committee at the appropriate time would unnecessarily jeopardize ating in both the United States and time. I don’t believe this is the right the appropriations process. Amending abroad have expanded their employ- time. It is misplaced here and it an appropriations bill is not the proper ment and sales in the United States, threatens to jeopardize our entire bill way to make fundamental changes to their investments in the United States, today. I note that the House, for the international tax policy. and their exports from the United record, has blue-slipped less blatant at- The international area is a very com- States at substantially faster rates tempts to raise revenues and change plex section of the Tax Code. No one is than industry generally. During the tax policy. Some of you will recall that happy when certain companies move 1980’s, American exporting companies 2 years ago the Senate adopted an abroad and manufacture products that had a better record on employment amendment with regard to taxes on are sold back to the United States. than the typical large American manu- diesel fuel. It passed overwhelmingly At the same time, it is important to facturing firm. here in this body, and it had strong understand that American companies The contention that American manu- support in the House at that time, in- are players in the global economy and facturing companies are harming our cluding from the then-chairman of the that expansion abroad means more jobs economy by shifting jobs abroad and Ways and Means Committee. Yet, be- back home. In fact, by 1990, manufac- importing cheaper products into the cause of the constitutional issue, he tured exports of American companies United States simply does not bear up chose to utilize the blue-slip procedure with operations overseas created over 5 under scrutiny. over there and the Treasury bill was million jobs in the United States. Rather, the exact opposite is true. In- sent back to the Senate. In effect, had If we are to continue to provide good vestment abroad by American export- the Senate not adopted separate legis- jobs for our citizens, it is important ing companies provides the platform lation striking that provision, the that we stay competitive in this for growth in exports and creates jobs House would have had to begin the emerging global economy by expanding in the United States. process of drafting and moving the nec- our presence abroad. Overall, this amendment would hurt essary appropriations bill all over American companies with overseas our economy. It would decrease the ac- again. investments have been waging a hard tivities of domestic exporters and de- I don’t believe that is what we want fight, but a successful one to keep ex- crease jobs in the United States. to happen here. I don’t believe we can ports flowing from the United States. This misguided amendment would afford such a procedure. Our Nation’s American companies operating over- give foreign-owned companies a huge law enforcement people, Mr. President, seas also help the balance of trade for competitive advantage and help them cannot afford such a procedure. Our the United States. provide economic and job benefits for Nation’s drug policy and funding for According to the Department of Com- their home countries at the expense of that policy cannot afford such a proce- merce, in 1993, American companies op- the United States. dure. This country’s civil servants, who erating overseas helped reduce our We do not need to adopt legislation rely on this bill every year to fund trade deficit by $11.5 billion. that hurts companies who go abroad their pensions and disabilities, cannot A study by the National Bureau of for the legitimate purpose of becoming afford such a procedure here. I cannot Economic Research found that manu- competitive in the international mar- stress enough this afternoon the impor- facturing by foreign affiliates of Amer- ket. tant funding in this bill —and most of ican companies increases exports from Overall, this area is one of extreme you are aware of this—which this the American parent company located complexity and of greatest importance amendment would jeopardize. in the United States. to our economy and the creation of Mr. KERREY. Mr. President, I have This amendment attacks the tax rule jobs in America. cosponsored and voted for this amend- known as deferral and would materi- The major international tax policy ment in the past, but the fact this is a ally increase the cost to many Amer- changes which would result from this tax issue put on an appropriation bill ican companies engaged in business amendment are within the jurisdiction has caused me some concern. The Sen- overseas. of the Senate Finance Committee. It ator from Alabama, the chairman, is This increase in costs will make it would be inappropriate and dangerous quite right. In this instance, as a con- more difficult for American companies for such significant changes to the Tax sequence of the revenue issue, we risk to compete with foreign manufacturers Code to be made piecemeal on the Sen- having this whole thing sent back over that are not subject to these additional ate floor. to us. Otherwise, I would be supporting costs. As I have stated in the past, the Fi- the Senator from North Dakota with- This amendment is based on the as- nance Committee will be holding hear- out any reservations. I urge colleagues sumption that if companies don’t build ings to look at the international area to consider the procedural issue here plants abroad, they will automatically and the kind of issues that are raised and, when Senator SHELBY of Alabama build plants in the United States. In by this amendment. so moves, keep this concern in mind. fact, many companies would probably For these reasons, I must respect- Mr. SHELBY. Mr. President, to re- just decide not to expand at all. fully oppose this amendment. assert this amendment raises constitu- If additional production facilities are Mr. SHELBY. Mr. President, the tional questions with regard to raising not added, American companies would chairman of the Senate Finance Com- revenue, which we are all familiar lose economies of scale that help them mittee is opposed to the amendment of with. For these reasons I move to table compete in the global marketplace. the Senator from North Dakota. In his the amendment, and I ask for the yeas These economies are particularly statement, he raises several important and nays. crucial in the commodities business points that I want to share with you The PRESIDING OFFICER. Is there a where price really matters. right now. The most important is that sufficient second? September 11, 1996 CONGRESSIONAL RECORD — SENATE S10261 There is a sufficient second. At this point, I raise a point of order, from getting all the information that The yeas and nays were ordered. pursuant to section 202 of House Con- they need with respect to medical serv- The PRESIDING OFFICER. The current Resolution 67, the concurrent ices and medical treatments. question is on agreeing to the motion resolution of the budget for the fiscal I come, Mr. President, from a part of of the Senator from Alabama to lay on year 1996. I raise the budget point of the country that has pioneered man- the table the amendment of the Sen- order. aged care. The Portland metropolitan ator from North Dakota. On this ques- Mr. WYDEN. I move to waive the area that I represented, first in the tion, the yeas and nays were ordered, point of order and ask for the yeas and House and now as a Senator, has the and the clerk will call the roll. nays on the motion. highest concentration of managed care The bill clerk called the roll. The PRESIDING OFFICER. Is there a in our country. We have seen good Mr. FORD. I announce that the Sen- sufficient second? managed care, and there is plenty of it ator from Arkansas [Mr. PRYOR] is ab- There is a sufficient second. in Oregon. sent because of illness in the family. The yeas and nays were ordered. Unfortunately, there are managed The PRESIDING OFFICER. Are there Mr. WYDEN. Mr. President, I ask care plans that have cut corners and any other Senators in the Chamber unanimous consent to speak on my that have kept a patient from a full who desire to vote? amendment at this time. range of those who provide necessary The result was announced—yeas 58, The PRESIDING OFFICER. The mo- services. There are plans in the coun- nays 41, as follows: tion is debatable. try where there have been oral commu- [Rollcall Vote No. 282 Leg.] Mr. WYDEN. Mr. President, the Sen- nications where a plan says to a par- YEAS—58 ator from Alabama is raising a point of ticular provider: ‘‘We’re watching the order on a revenue issue that simply Abraham Frist Mack number of referrals that you are mak- Ashcroft Glenn McCain does not apply to this amendment. I ing out of the network. We don’t want Baucus Gorton Moynihan believe the Senator from Alabama is you to refer to that particular special- Bennett Gramm Murkowski talking about a Congressional Budget ist.’’ Bond Grams Murray Office report that was done on the Breaux Grassley Nickles This is going on in our country. It is Brown Gregg Nunn House legislation on this matter, and I not right, and that is what this issue is Burns Hatch Pressler would just like to inform my col- all about. This is not a budget issue, I Chafee Hatfield Roth leagues that this amendment contains say to my colleagues. This is a matter Coats Helms Santorum Cochran Hutchison Shelby a change from the House legislation, a of right and wrong. This is a matter of Cohen Inhofe Simpson change that was added at the direct re- whether you are going to stand up for Coverdell Jeffords Snowe quest of a number of managed care or- consumers, stand on the side of pa- Craig Johnston Specter ganizations, that deals with this ques- D’Amato Kassebaum Stevens tients, or whether you are going to see DeWine Kempthorne Thomas tion of revenue. those gag rules that keep patients from Domenici Kyl Thompson If I could briefly engage the Senator getting the information that they need Faircloth Lieberman Thurmond from Alabama on this matter? The and deserve. Feinstein Lott Frahm Lugar Senator from Alabama, I know, is try- Mr. President, the preamble of the ing to juggle a number of matters, but Hippocratic oath, which guides so NAYS—41 I would like to ask the Senator from much of American health care, is a Akaka Feingold McConnell Alabama, does he have a Congressional statement to physicians: ‘‘First, do no Biden Ford Mikulski Bingaman Graham Moseley-Braun Budget Office report at this time that harm.’’ Boxer Harkin Pell specifically cites this revenue projec- The message of these gag restric- Bradley Heflin Reid tion on my amendment which is pend- tions, these gag clauses that we are Bryan Hollings Robb ing before the Senate? seeing in managed care plans all across Bumpers Inouye Rockefeller Byrd Kennedy Sarbanes Mr. SHELBY. If the Senator from Or- the country is not ‘‘First, do no harm.’’ Campbell Kerrey Simon egon will yield? Their message is, ‘‘First, support the Conrad Kerry Smith Mr. WYDEN. I am happy to yield. bottom line.’’ That is the issue that we Daschle Kohl Warner Dodd Lautenberg Wellstone Mr. SHELBY. We have an oral state- are debating. That is not good health Dorgan Leahy Wyden ment from the Budget Committee staff care. That is certainly not good man- Exon Levin that this violates the concurrent reso- aged care. NOT VOTING—1 lution and will cost $85 million. They Several months ago, the Washington Pryor scored it that way. Post cited a startling example involv- Mr. WYDEN. Mr. President, the Sen- ing the Mid-Atlantic Medical Services The motion to lay on the table ator from Alabama told me that he health plan, a large Washington metro amendment No. 5223 was agreed to. does not have an official report from area provider. This plan wrote a letter Mr. SHELBY. Mr. President, I move the Congressional Budget Office with to network practitioners informing to reconsider the vote. respect to revenue on it. The Senator them that ‘‘effective immediately, all Mr. KERREY. I move to lay that mo- has said that the majority staff referrals from (the plan) to specialists tion on the table. projects that it will cost $85 million. may be for only one visit.’’ And in bold The motion to lay on the table was Mr. SHELBY. If the Senator from Or- type, the letter stated: ‘‘We are termi- agreed to. egon will yield for a correction? nating the contracts of physicians and Mr. KERREY. I ask unanimous con- Mr. WYDEN. I am happy to yield. affiliates who fail to meet the perform- cept to add Senators SNOWE and PRES- Mr. SHELBY. The CBO, not the ma- ance patterns for their speciality.’’ SLER as cosponsors to Amendment 5232 jority staff, is where this number That is the kind of gag rule, that is regarding IRS reorganization. comes from, $85 million that is a viola- the kind of constraint that is being im- The PRESIDING OFFICER. Without tion of the rule. Not the majority staff posed on patients in the American objection, it is so ordered. but the Congressional Budget Office it- health care system today by some The Senator from Alabama. self. managed care plans. Certainly, not all AMENDMENT NO. 5206 Mr. WYDEN. If the chairman of the the managed care plans, and it is cer- Mr. SHELBY. Mr. President, what is subcommittee would provide me a copy tainly not representative of what we the pending business? of that, I would very much like to see are seeing in Oregon, but it is happen- The PRESIDING OFFICER. The that. Because the fact is, and let us go ing across the country. We have even pending business is amendment No. to the discussion of this matter, this seen it in a State like mine that has 5206, the WYDEN amendment. has nothing to do with the Federal good managed care, and this is a bad Mr. SHELBY. Mr. President, the budget. What I am seeking to do is to deal for patients all around. WYDEN amendment contains direct make sure that managed care plans, First, patients end up not getting the spending and revenue legislation which the fastest growing part of American kind of health care that they need. would increase the deficit by $85 mil- health care today, are not allowed to Second, the plan may restrict the lion for the period 2002 through 2006. impose gag rules that impede patients provider, the physician, from informing S10262 CONGRESSIONAL RECORD — SENATE September 11, 1996 the patient about referral restrictions merce Committee dealt with this on a across the country with these gag rules so that the patient doesn’t even know unanimous basis, on a bipartisan unan- that turns the Hippocratic oath on its that they are being medically short- imous basis, and I simply want my col- head. A Hippocratic oath that tells changed via the plan’s policy. leagues to know that while Senator physicians, ‘‘First, do no harm,’’ has So what you have, stemming from KENNEDY joins me formally in this ef- become all too often, ‘‘First, think the gag clauses, is a situation where fort, Senator HELMS has filed what about the bottom line.’’ our patients are in the dark in the fast- amounts to almost an identical amend- So I am very hopeful that on a bipar- est growing sector of American health ment to what I offer today. tisan basis the Senate will pass, hope- care. These gag clauses keep the pa- Dr. GANSKE and ED MARKEY, on a bi- fully without opposition, my amend- tients from even knowing, from even partisan basis in the House, have engi- ment. As I say, a vote against my being in a position to understand that neered committee approval of it, so amendment is essentially a vote they are being medically shortchanged this is not a partisan issue that comes against what Senator HELMS has filed via a plan’s policy. before the Senate today. in this body. It is a vote against what Let me mention a couple of providers This amendment is rifle-shot legisla- Dr. GANSKE has sought to do in the who have brought this to my attention tion prohibiting only gag provisions in House. And most importantly, it is a in Oregon. contracts or in a pattern of oral com- vote against patients and consumers One orthopedic surgeon faced a situa- munications between plans and practi- all across the country. tion where his managed care plan de- tioners which would limit discussion of If you vote against this amendment manded he diagnose problems in pa- a patient’s physical or mental condi- today, which will undoubtedly be the tion or treatment options. tients apart from the ones for which only chance the Senate gets to go on I want to emphasize that health they were referred. He, in effect, was plans would still be able to protect and record on it in this session, then you told he had to keep his mouth shut and enforce provisions involving all other are sending a message to managed care instead re-refer those folks back to aspects of their relationships with plans across the country that if you their primary care physician. practitioners, including confidentiality want to stiff the patients, if you want This physician wrote me: ‘‘This is ex- and proprietary business information. to stiff those who are vulnerable and tremely disappointing to patients, as The reason that is important, Mr. those who need health care in America, you might imagine. This requires more President, is obviously it is not in the it is all right. You can keep from them visits on their part to their primary interest of the American people or this information about their physical and care physician and then back to me, body to have the U.S. Senate fishing mental options and alternatives. You which is extremely inefficient.’’ about in the proprietary records of can keep information from them about Another physician, a family practi- health plans. treatment and kinds of services. I can- tioner in a rural part of the State, What this is all about is making sure not believe that is what the U.S. Sen- wrote that antigag legislation was that patients get information about ate would want to do. needed because ‘‘when a physician rec- health services, about their physical or I think what the U.S. Senate would ommends medical treatment for a pa- mental condition, about treatment op- want to do is what Senator HELMS has tient and a plan denies coverage for tions. They deserve the right to infor- sought to do, what Dr. GANSKE has that treatment, patients and physi- mation about health services and not sought to do, what Congressman MAR- cians need an effective mechanism to face these gag clauses that keep them KEY and Senator KENNEDY and I have challenge the plan.’’ from getting the information that they sought to do, and that is to stand up So what we find is that these kinds of deserve. for the rights of the patients. communications, communication be- I want my colleagues to know that I So I am hopeful that this will be sup- tween a plan and a provider, such as an have worked hard with leaders in the ported widely by Senators today. We oral communication, are getting in the managed care community, as well as should not let these gag rules between way of the doctor-patient relationship, practitioners and consumer advocates plans and an individual physician get and that is why consumer groups and in crafting this legislation. The amend- in the way of the sacred doctor-patient provider groups all across this country ment specifies that State laws which relationship. These plans are the fast- are up in arms and have weighed in on meet or exceed the Federal standard est growing part of American health behalf of this particular amendment. set out here would not be preempted by care today. And we ought to go on There are some protections. A hand- Federal law. record as being on the side of patients, ful of States do offer some protections The bill has been endorsed by a wide as being on the side of the vast major- for the patient, but they vary widely variety of provider groups, physician ity of doctors and providers in this from State to State. So that is why I groups, as well as by consumer organi- country who want their patients to bring this matter to the Senate’s at- zations. The endorsements for this par- know all their treatment options, all tention. ticular amendment include the Asso- the services that are available to them. Senator KENNEDY joins me in this ef- ciation of American Physicians and I hope that Senators on a bipartisan fort to set a national standard for what Surgeons, the American Association of basis will support this effort. has become a national problem, but I Retired Persons, the Center for Patient Mr. KENNEDY addressed the Chair. would like to emphasize how bipartisan Advocacy, Citizen Action, the Consum- The PRESIDING OFFICER. The Sen- this effort is. Senators need to under- ers Union, the American College of ator from Massachusetts [Mr. KEN- stand that if they vote against my Emergency Physicians, and a number NEDY] is recognized. amendment, they are essentially vot- of other organizations. Mr. KENNEDY. Mr. President, first ing against the amendment that Sen- Here is what the Association of of all, I want to commend Senator ator HELMS has also filed. It is a little American Physicians had to say with WYDEN for providing leadership in this bit different. It has not been formally respect to this amendment. They said: very, very important area of health addressed in the Senate, but it is essen- Restrictions on communication with our policy. I welcome the opportunity to patients not only undermine quality of care, tially what Senator HELMS has sought. join with him on an issue that really but are a blatant violation of the Hippo- In the House, Dr. GREG GANSKE, a Re- cratic oath. Prohibition of gag rules is a cru- affects, in a very significant and im- publican, a physician, has done yeoman cial step toward protecting patients. portant way, the quality of health care work on this matter, with Congress- The Center for Patient Advocacy that is being practiced in this country. man ED MARKEY of Massachusetts, a said: I commend him and others who have Democrat. They have held voluminous It has become common for insurers to in- been involved with this legislation. hearings in the House where this has corporate clauses or policies into providers’ I would like to address the Senate been a problem documented on the contracts that restrict their ability to com- just very briefly on this issue and also record. municate with their patients. Such gag make a comment about the procedural The Commerce Committee dealt with clauses seriously threaten the quality of care situation that we find ourselves in at this issue—I would like all my col- for American patients. the present time. leagues to know this, as we move to a So what we have, Mr. President, and As Senator WYDEN has pointed out, vote on this matter—the House Com- colleagues, is essentially a pattern one of the most dramatic changes in September 11, 1996 CONGRESSIONAL RECORD — SENATE S10263 the health care system in recent years violated in practice. The standards of support over in the House of Represent- has been the growth of managed care the Joint Commission on Accreditation atives, is going to try and hide under a programs. In many ways, this is a posi- of Health Care Organizations requires technical amendment, will be a shame- tive development. Managed care offers that ‘‘Physicians cannot be restricted ful day here in the U.S. Senate. the opportunity to extend the best from sharing treatment options with Mrs. KASSEBAUM. Mr. President, I medical practices to all medical prac- their patients, whether or not the op- say, first, this is not an effort to hide tice, to emphasize health maintenance tions are covered by the plan.’’ behind a technical point of order. I care and to provide more coordinated care. Dr. John Ludden of the Harvard Com- just as much as the Senator from Mas- munity Health Plan, testifying for the Numerous studies have found that sachusetts or the Senator from Oregon American Association of Health Plans, managed care compares favorably with about the quality of health care. We all has said: ‘‘The AAHP firmly believes the fee-for-service medicine on a vari- do in this Chamber. There is a process, that there should be open communica- ety of different quality measures. unfortunately—or fortunately—under Many HMO’s have made vigorous ef- tions between health professionals and which we operate around. That process forts to improve the quality of care, to their patients about health status, requires us to do some things to assure gather and use systematic data to im- medical conditions, and treatment op- that issues are considered with some prove clinical decisionmaking and as- tions.’’ sure an appropriate mix of primary and Legislation similar to this amend- thoroughness, and I believe that is ap- specialty care. But the same financial ment passed the House Commerce propriate. incentives that can lead HMO’s and Committee on a unanimous bipartisan I agree in many ways, in all ways, ac- other managed care providers to prac- vote. President Clinton has strongly tually, on the principle to which the tice more cost-effective medicine also endorsed the proposal. Senator from Oregon and the Senator can lead to undertreatment or inappro- The congressional session is drawing from Massachusetts are speaking. Pa- priate restrictions on specialty care, to a close. Today the Senate has the tients should have access to complete expensive treatments, and new treat- opportunity to act to protect patients and accurate information regarding ments. across the country from these abusive their health care. None of us here in In recent months, the spate of criti- gag rules, and I urge the Senate to ap- this Chamber disagree with that con- cal articles in the press has suggested prove the amendment. cept, or with the concept that doctors that too many managed care plans Mr. President, I just want to make a should be allowed to share that infor- place the bottom line ahead of their pa- very brief comment about this point of mation with their patients. Patients’ tients’ well-being—and are pressuring order. Mr. President, this making of a communications with their doctor physicians in their networks to do the point of order is an abuse of the budget should be protected. I think we would same. So these abuses include failure system. Basically, what we are talking all feel this is a prime concern. It is a to inform the patients of particular about, for those that are trying to hide vital part of the health care process. treatment options; excessive barriers behind the point of order, is that the I have a great deal of sympathy for to reduce referrals to specialists for costs that are affected come from the the motivations behind the amendment evaluation and treatment; unwilling- most egregious abuses in the health that is offered by Senators WYDEN and ness to order appropriate diagnostic care system by systems which are KENNEDY. However, I believe it would tests; and reluctance to pay for poten- shortchanging and endangering the simply be irresponsible to approve it in tially life-saving treatment. In some health of the American people. the absence of any review or discussion cases, these failures have had tragic You cannot hide behind this proce- of its provisions at any level in the consequences. dural vote on this issue, Mr. President. In the long run, the most effective You just cannot hide. This is not about U.S. Senate. The legislation upon means of assuring quality in managed involving additional burdens or costs which the amendment is based was in- care is for the industry itself to make to the Federal Government. What you troduced barely a month ago on July 31 sure that quality is always a top prior- are basically talking about is providing and no committee hearings have been ity. I am encouraged by the industry’s protections to the sleaziest operators held. recent development of a philosophy of in this country that are endangering I have visited with Senator WYDEN care that sets out ethical principles for the health of the American people, and because, as chairman of the Labor and its members, by the growing trend to- every consumer will know it. Human Resources Committee, I have ward accreditation, and by increas- Make no mistake about it. Make no wanted to hold hearings on this legisla- ingly widespread use of standardized mistake about it. We are talking about tion since we came back from the Au- quality assessment measures. But I trying to get the best health care. That gust recess. It has not been possible to also believe that basic Federal regula- means that the best information that find a time that we were able to put a tions to assure that every plan meets the best doctors in this country can hearing together. That does not mean at least minimum standards is nec- provide ought to be provided to pa- that it is not going to happen, and cer- essary. tients. Patients deserve to have that tainly it should be a priority of the So, with this amendment, the Senate information. next Congress. However, just as so has a chance to go firmly on record We are seeing an abuse of the budg- often happens here when we begin to against a truly flagrant practice—the etary system by raising the point of run out of time, we want to add every- use of gag rules to keep physicians order on this particular measure. Make thing that we can to the appropriations from informing patients of all their no mistake about it, every consumer is bills that are moving. treatment options in making their best going to know what this is about. This In this instance, as has been pointed professional recommendations. is not about procedure; this is about Gag rules take a number of forms. substance. This is about substance. out, a similar proposal was approved by This amendment targets the most abu- You can have a technical point of the Commerce Committee in the House sive and most inappropriate type of gag order, but it is about substance, about of Representatives. It is a bipartisan measure. There is nothing partisan rule: gag rules that forbid physicians quality of health. to discuss all treatment options with We only have the opportunity to about this. It passed unanimously in the patient and make the best possible offer it on this particular measure. I committee. It has not been considered by the full House of Representatives. I professional recommendation, even if commend Senator WYDEN for providing that recommendation is for a non-cov- the initiative. We all ought to be very believe that, when we are looking at ered service or could be construed to clear about what is involved in a tech- aspects of a very important and yet disparage the plan for not covering it. nical point of order. It is an abuse of complex piece of legislation, we do Our amendment forbids plans from the budget system in every sense of the have to go through the procedures and prohibiting or restricting any medical word. It involves the most important processes that are part of our operation communication with a patient with re- issue regarding health and that is the here, whether we want to or not. spect to the patient’s physical or men- quality of health for American consum- It certainly is not unprecedented to tal condition or treatment options. ers. have extraneous amendments offered This is a basic rule which everyone en- The idea that the Senate, after we at the last minute. However, the Sen- dorses in theory but which has been have had unanimous and bipartisan ate’s being asked to decide a highly S10264 CONGRESSIONAL RECORD — SENATE September 11, 1996 complex issue without the benefit of amination of managed care issues with ment. This amendment has been care- any review at all is, I suggest, Mr. his recent announcement of his plans fully crafted. The House has gone over President, a mistake. It is a mistake. to establish the National Commission it, the medical community has gone Our procedures may delay consider- on Health Care Quality. over it, some of the best minds of the ation of legislation we support, but it As I stated when I began speaking, I U.S. Senate have gone over it, and they protects us from legislation that we do am not arguing that this issue should have crafted an amendment that is a not support as well. We need to be able be ignored. In fact, I think it is a very rifle shot. It says very clearly what to understand what a piece of legisla- important issue for us to look at and cannot be gagged, what communica- tion is all about. For example, we are one of the next important steps in any tions ought to be able to freely flow be- not sure what CBO’s scoring of this of our health care debates. It is a le- tween a patient and the person who is amendment is. It might not be impor- gitimate concern. responsible for that patient’s care. tant, but it is a requirement we have It is for this reason I intend to pro- Mr. President, we ought to pass this scoring around here. We have that re- pose an amendment calling for action amendment. We ought to pass this quirement so we can better understand in this area early next year after there amendment. I can’t think of a single the budgetary consequences of our ac- has been an opportunity to review the good reason why this amendment tions, and—generally—we are required full ramifications of the solution pro- ought to be stopped. I can just say that to provide offsets for spending in- posed by the Senator from Oregon. A I have discussed this with people in my creases. vote ‘‘no’’ on this motion, Mr. Presi- home State on my most recent trip As I mentioned earlier and as Sen- dent, does not mean that we do not home. They are just mystified how, in ator WYDEN pointed out, the House care. A vote ‘‘no’’ is not hiding behind America, you can have a circumstance Commerce Committee has considered some procedural arrangement. A vote in which a doctor is precluded and pre- this issue and has held extensive hear- ‘‘no’’ is simply saying we have a proc- vented from talking to their patients ings. I have visited with Congressman ess that we should make work as in- about treatment options that are avail- GANSKE myself, and I have high regard tended in order to give us the best end able to them. Well, that is just beyond for the dedication that he has given to result on an issue that we all care description in terms of the morality of this issue and for the time that he has deeply about and that I believe should the circumstance. spent with it. His being a doctor, I have be of prime concern. Mr. President, I want to commend high regard for his understanding of I yield the floor. Senator WYDEN for coming forward the issue. I have great interest in his Mr. CONRAD. Mr. President, I think with this amendment at this time. I work and feel that he is to be com- this is a fundamental issue and that we would commend anybody on the other mended for moving forward the discus- ought to address it now. side of the aisle—and I would do it pub- sion to the point that it has progressed. Mr. President, I come from a long licly—if they came forward with this However, I point out that even the medical tradition on my mother’s side amendment, because I feel that strong- authors of the amendment before the of the family. My grandfather and vir- ly about it. This is something we ought Senate acknowledge that the work of tually all of his relatives were doctors. to pass. It ought to be bipartisan. the House committee is not the final My grandfather was a pioneer surgeon There ought not to be a whiff of par- word, as several provisions of the in North Dakota and was the chief of tisanship about it. I thank my col- amendment depart from the language staff of our local hospital. In many approved by the House committee. The league from Oregon, Senator WYDEN, ways, I grew up in a medical family. for doing, I think, a superb job in reason that we have committees in the The notion that we would have a gag Senate and the reason that each one of bringing this amendment to the atten- rule on doctors and what they can tell tion of the body. This ought to pass us spends, or should spend, so many their patients is anathema to those hours in committee work is to lend 100–0. I don’t care about points of order who are medical professionals. It is not and all the rest. I don’t know whether some degree of thought and expertise limited to medical professionals. I to public policy issues. people are hiding behind it or not. think it is anathema to any American. It can be very frustrating when legis- Frankly, I just think it is inappropri- The notion that a doctor, by contract, lation does not move forward at the ate in this circumstance to be talking pace we would like to see. Neverthe- is precluded from sharing certain infor- about a point of order with respect to less, the committee system is one of mation with a patient about that pa- an amendment that is so totally and the processes, and perhaps breaks, that tient’s illness is unconscionable—un- fully justified. we have here, Mr. President. That sys- conscionable. Again, I want to thank my colleague, tem enables us to turn out, one would What kind of system do we have Senator WYDEN, for authoring this hope, a finished product where we un- when a doctor can be precluded from amendment and bringing it to our at- derstand what the language means and telling a patient about treatment op- tention. I hope this amendment passes which avoids the unintended con- tions, about referral options in Amer- 100–0 on the floor of the U.S. Senate. sequences of the initial language pro- ica? That would send a very good message posed. Mr. President, I met yesterday with across this country about what is ac- In the course of this work, I think we medical professionals from my State. I ceptable and what is not acceptable. find that very little is as simple as it do not use the English language light- I will just add this final point. If this may seem at first glance. We also find ly. I said that I believe these gag rules is the direction that we are going to go our initial solutions can spawn prob- are immoral, and I do believe it is im- in with health care in America, there is lems just as serious as those we set out moral, Mr. President, to say to a doc- going to be an enormous reaction in to address. Such solutions are inevi- tor, ‘‘You are restricted and limited in this country. I predict that today. If tably refined and improved as addi- what you can say about what you know this is the direction we are going to go tional information is gathered. about a patient’s options.’’ You know, in, in which patients are denied infor- In an area as complex and dynamic it sounds to me like another country mation about their coverage options, as managed care, we need to give seri- and another time. Maybe that would go then we have big trouble in this coun- ous thought and deliberation before over in the Soviet Union. Maybe that try. We can address it right here today launching the Federal Government would have gone over in Germany in and pass this amendment, and we into the middle of private contractual the thirties. This is America in the should. arrangements. The amendment is in- nineties. No doctor should be precluded I thank the Chair and yield the floor. tended to address an important issue from discussing with a patient the Mr. SHELBY. Mr. President, I will regarding quality health care, and it is treatment options of that patient. speak to this in a second. an important issue. But good inten- That is outrageous. Mr. President, I ask unanimous con- tions are not sufficient; we need to un- Mr. President, we may not be able to sent that during the consideration of derstand the consequences of the lan- solve this matter completely in the the committee amendment on page 80 guage we use and the actions we take. days that remain in this session, but regarding abortion funding there be 1 In fact, President Clinton himself has we can start, and we should start, and hour of debate prior to a motion to acknowledged the need for a closer ex- we have the opportunity in this amend- table, to be equally divided between September 11, 1996 CONGRESSIONAL RECORD — SENATE S10265

Senators NICKLES and BOXER, and that We are being asked now to allow the tions into proprietary business infor- no other action occur prior to the mo- gag rule on doctors in this country to mation that ought to be the property tion to table. This has been cleared continue. This is a result of the pres- of the health maintenance organiza- with Senator KERREY. sure of the insurance company, and tions. It goes just to the question of The PRESIDING OFFICER (Mr. you are trying to tell us that this is a whether patients have a right to know. GREGG). Without objection, it is so or- budget item, that this is a matter of Some may say now is not the time; dered. budget process and procedure, in order that maybe next session it can be Mr. SHELBY. Mr. President, CBO has to maintain the integrity of the Fed- taken up. I would ask that one not sub- told staff from both sides of the aisle, eral budget? It is an excuse, and it is stitute this kind of discussion of maybe Republicans and Democrats, that the an abuse of the budget process. It is the tomorrow or maybe next year for what scoring of this amendment is the same worst kind of abuse, because by deny- is simple justice and common sense for as the scoring of the Ganske bill in the ing this kind of information to pa- medical patients in the fastest growing House, and they will be providing a tients, what we are doing is using the sector of American health care. This written confirmation on this scoring to budget process as a way to provide an has not been a partisan issue. Dr. both of our staffs immediately. It could out for the sleaziest operators and at GANSKE, a Republican, a physician on be imminent. We will present it and in- the same time, endangering the health the House side, has done superb work sert it into the RECORD as soon as we of the American people. That is abso- along with Congressman MARKEY, a get it from CBO. It is going to be the lutely wrong. It was never intended in Democrat. same thing. CBO says to us that it is any debate or discussion of the Budget I have noted that Senator HELMS has going to cost $85 million and it violates rules. This is a matter of substance. filed an amendment which is very simi- the Budget Act. I look forward to supporting the lar to the one that I will be seeking a Mr. KENNEDY addressed the Chair. Wyden amendment and, again, I com- vote on in a few moments. But there is The PRESIDING OFFICER. The Sen- mend him for his leadership in bringing a question, it seems to me, of consumer ator from Massachusetts, Mr. KEN- this extremely important measure to justice, of the patient’s right to know, NEDY, is recognized. the Senate floor. and we should not ask those patients to Mr. KENNEDY. Mr. President, I will Mr. WYDEN addressed the Chair. wait any longer given the documented just respond very briefly to two points. The PRESIDING OFFICER. The Sen- record of abuses and problems. One is about the consideration of this ator from Oregon. We know that our health care system amendment. I say to my friend and col- Mr. WYDEN. Mr. President, first, I involving billions and billions of dol- league from Kansas, Senator KASSE- express my thanks to Senator KEN- lars is now being driven by managed BAUM, with all respect, we did not have NEDY. He has done yeoman work on so care. One plan after another in the U.S. any hearings on the mental health pro- many health issues over the years. He Senate has looked to managed care as vision that we just passed here 82 to 15, has just been so helpful to me as a new the centerpiece of American health the Domenici-Wellstone amendment. Member of the Senate. I thank him for care as we look into the next century. We didn’t have any hearings in our all of his help and that of his staff in My view is—I come from a part of the committee on that particular issue. We preparing this amendment. country where there are many good did not have any on the Lodine patent I think it is clear, Mr. President, managed care plans—that managed extension, which was added by some of that this amendment is not some sort care will play a big role, a significant our majority Members to the Kasse- of exotic animal that has just wan- role in delivering quality care in a baum-Kennedy bill. That would have dered onto the floor of the U.S. Senate cost-effective way to the patients and been something we should have had a to be considered, as if the Members consumers of our country. But let us good deal of hearings on. We did not have no awareness of what this issue is not let a small number of plans—plans have any on the Mediguide amendment all about. that have been cutting corners and that was added in the agricultural ap- This issue has been the subject of ex- have been found to be cutting corners propriations bill. Hearings would have tensive hearings in the House of Rep- from hearings that have been held in been useful. Those affect consumer in- resentatives. This issue has been all the Capitol—in effect continue those formation as well. So the fact of the over the news media across the coun- consumer abuses that take a toll on pa- matter is, on this issue, it has been re- try. Suffice it to say that virtually tients across this country. viewed in detail in hearings in the every Member of this body has heard This is not a vote about an arcane House of Representatives. It is a simple from constituents and from providers kind of issue with respect to the budg- concept, and there is absolutely ade- at home about this particular issue. I et. This is a question of justice for pa- quate justification. know that virtually every time I am tients, of the patient’s right to know, Finally, Mr. President, on the budget home—I come from a part of the coun- and of patients needing information item—and we all have the budget items try which has some of the very best about the various treatment options here—it is my understanding that, for managed care in the Nation—that I available to them. 1997, 1998, 1999, 2000, and 2001, the items hear from patients and consumers I hope my colleagues will in the spir- which are listed in the budget, that about this particular issue. it that this has been addressed in the may be the potential cost, can be as- It really comes down to a question of House pass this with a bipartisan and sumed within the range of differences whether we are going to keep faith significant vote. That is the way it was and estimates within the Budget Com- with the Hippocratic oath of doing no tackled in the House Commerce Com- mittee. What it is not is in the year harm to patients, making sure they mittee. I hope we will send a message 2002. Do you know what that figure is have information about the various today to the vast majority of patients, that we are going to risk denying treatments and services that are essen- doctors, and others who offer good American consumers and patients in- tial to them, or to turn that Hippo- medical care that we are on your side, formation that is vital to their health? cratic oath on its head and in effect that we are going to isolate those gag It is $15 million. It is $15 million. Do say the first obligations are to the bot- rules, that we are going to say that is you know how the Budget Committee tom line. not what we want American health gets that? They say, well, when pa- This amendment is rifle-shot legisla- care to look like in the 21st century, tients actually find out that there is a tion. It prohibits only gag provisions in and that we would vote today to ban better treatment for their illness, what contracts that relate to patient care. It these insidious, unconscionable gag they are going to do is get the better goes only to the question of whether or rules that restrict the right of medical treatment for their illness, which not patients are going to be able to get patients in our country to know about means that they may very well get less full and complete information about essential services. wages because if they increase the cost their physical and mental condition Mr. President, I ask for the yeas and of their health insurance, they are and about the treatment options that nays on my amendment. going to get less wages. That is the es- are available to them. It is not going to The PRESIDING OFFICER. The yeas timate. That is going to be the result— interfere with proprietary matters. It and nays have already been ordered, $15 million in the year 2002. is not going to allow fishing expedi- the Chair notes. S10266 CONGRESSIONAL RECORD — SENATE September 11, 1996 Mrs. KASSEBAUM addressed the the committee that we have jurisdic- citizens and the Indiana legislature Chair. tion over, and the Wyden amendment that do not happen to conform, that The PRESIDING OFFICER. The Sen- undermines the committee’s ability to would be construed by the Senator as ator from Kansas. do so. being more narrow? In other words, Mrs. KASSEBAUM. Mr. President, I I hope that the Senate will not waive they might not meet all of the Sen- wish to speak briefly in order to men- the Budget Act. ator’s criteria but they certainly meet tion to the Senator from Oregon that Mr. KERREY addressed the Chair. the criteria that the people in our he has talked a couple of times about The PRESIDING OFFICER. The Sen- State believe appropriate to provide the language of the Senator from ator from Nebraska. protection to patients. North Carolina, Senator HELMS. I just Mr. KERREY. Mr. President, the Mr. WYDEN. If the Senator will let visited with Senator HELMS to ask him Senator from Indiana asked me if he me respond, as the Senator knows—and what he thought of the provision before could speak. We are moving to a vote. both of us are veterans of the House us. He pointed out that his language is He has a clarification question. I was Commerce Committee—not very much much more narrowly drawn. It applies seeking the floor to give him an oppor- goes through the House Commerce only to the Federal Employees Health tunity to be recognized. Committee unanimously. Dr. GANSKE Benefits Plan and includes some spe- The PRESIDING OFFICER. The Sen- is not known as a poster child for the cific criteria. He has some difficulty ator from Nebraska. anti-States rights movement. This is a believing that we should expand it fur- Mr. COATS. Mr. President, I thank bill that has been worked on so as to be ther without understanding more of the Senator from Nebraska for yielding sensitive to the rights of States. What the ramifications. for the purposes of a question. it does essentially is bring the same I, like everyone else, have great sym- I would like to ask the sponsor of the kind of consumer protections at the pathy for what Senator WYDEN has amendment, Senator WYDEN from Or- Federal level that we do in a number of been wanting to accomplish, and what egon, a question and see if I can get a Medicare areas. The Senator and I Congressman GANSKE wants to do in clarification. I have just been advised worked, for example, in the House on the House. I just have to say, however, that the amendment that he has of- Medicare risk contracts and the like. it may not be as easily done as we fered preempts current State law; our This does say that on certain matters would like to believe that it could be. current law. Is that correct? up to what amounts to a floor of That is all the more reason, I think, Mr. WYDEN. No, that is not correct. consumer protection there ought to be that we ought to at least have a hear- In fact, we specifically protect the a national standard. And that is how ing in the Senate and take the legisla- rights of States to go further. we deal with it here. That is how Dr. tion through the committee. Mr. COATS. What if States decide to GANSKE dealt with it in the House. As I said, and as Senator KENNEDY go a little more narrow? Mr. COATS. I think I have the Sen- pointed out, we have considered some Mr. WYDEN. This is in fact a na- ator’s answer. The Senator’s amend- major legislation which has not gone tional standard. Yes, we do say—be- ment does preempt those portions of through the full committee process. cause managed care plans, many of Indiana law that do not conform with But, in general, those have been in- them, operate in more than one State, his definition of a floor or minimum stances in which we have had some we have said, you bet, we have a na- standard. I believe our State has taken fairly extensive debate. tional problem. It is a national stand- adequate steps to provide protections This proposal came to us without ad- ard. But there are a small number of and information for consumers and vance warning and without benefit of States that have dealt with this in a therefore I will have to oppose the prior discussion in the committee or in thoughtful kind of way. We specifically amendment. The Senator answered my the Senate. We are simply not prepared protect those States. question. I do not need to know the to look at language regarding contrac- Mr. COATS. That is my dilemma be- history of what happened in the com- tual arrangements in the private sector cause Indiana has, in my opinion, dealt mittee or whether Mr. GANSKE is right and make wise decisions about it over- with it in a thoughtful way. In some or wrong. I am just looking out for my night. instances, the statute that we have is State of Indiana which made a deter- I yield the floor. broader than the amendment offered by mination of what is best for our con- Mr. SHELBY addressed the Chair. the Senator from Oregon and therefore sumers, and we are very happy in Indi- The PRESIDING OFFICER. The Sen- I would think would be acceptable. But ana. I cannot support an amendment ator from Alabama. in other instances it is narrower. In that preempts what we have done. Mr. SHELBY. Mr. President, we have other words, it is crafted to how Indi- Mr. WYDEN. If the Senator will let debated this for quite awhile today, ana best sees the need to provide infor- me respond once more, I cannot imag- and also, as some of you recall, fairly mation to consumers to protect them. ine that Indiana State law allows these extensively last night. So that I assume then the answer is plans to gag Indiana doctors. I have Mr. President, this is not a Treasury that that portion of the Indiana not reviewed the Indiana law, but I just appropriations issue that is before us. consumer protection and consumer in- cannot believe that Indiana law does This debate has addressed the issue, formation statute, which does not con- permit these kinds of gag rules. That is and adopted an amendment. The form to the amendment, is preempted. all we do in this legislation. If the Sen- amendment would cause the commit- Mr. WYDEN. Well, the parts that ator is looking for a way to vote tee to find $85 million in the conference protect the patient and protect Indiana against what physician groups and pa- to stay within our allocation. We physicians, those parts are in fact pro- tients all across this country have been would have to take funds from the ac- tected under my amendment. But if calling for, so be it. I know the Senator counts that I spoke about earlier. The there are parts of the Indiana statute has done a lot of good work in health bill funds law enforcement, the IRS, that do not adequately protect Indiana care. But I cannot believe that Indiana and other basic Government functions, physicians and do not adequately pro- law is coming out in favor of these such as the Secret Service, and GSA. tect Indiana consumers, yes, there kinds of gag provisions. All we are This bill does not come close to the would be a Federal standard. seeking to do in this legislation is pre- President’s budget request. The admin- Mr. COATS. If the Senator will yield vent them as well. istration would like more money in further, that was not directly my ques- Mr. COATS. That is my last word this bill for law enforcement and oth- tion. Indiana has made a determination here. I know that the Senator is very ers, not less. through its legislature, through its familiar with what the State of Oregon This amendment would further re- Governor, through consultation with has done. The constituents of Oregon duce those programs, if it were adopt- consumer groups, patient groups, pro- have elected him because they feel he ed, $85 million. The Senator’s amend- vider groups, about the best means of knows what is going on in that State. ment may be a worthy one, and prob- providing information and protecting It does not sound to me as if the Sen- ably is a worthy one, but the commit- consumers. And so my question is, does ator from Oregon knows what the tee has an obligation, I believe, to fund the Senator’s amendment preempt State of Indiana has done. They elected the basic Government functions before those decisions on the part of Indiana this Senator because they know I know September 11, 1996 CONGRESSIONAL RECORD — SENATE S10267 what is going on in that State. So I Mr. FORD. I announce that the Sen- The amendment is as follows: think it is presumptuous for the Sen- ator from Arkansas [Mr. PRYOR] is ab- At the end of the committee amendment, ator from Oregon to say what Indiana sent because of illness in the family. insert the following new section: has done is incorrect when he does not The PRESIDING OFFICER. Are there SEC. . PROTECTION OF PATIENT COMMUNICA- even know what it is. any other Senators in the Chamber TIONS. All I am saying is I want to protect who desire to vote? (a) FINDINGS.—Congress finds that— The yeas and nays resulted—yeas 51, (1) the health care market is dynamic, and Indiana’s right to make a determina- the rapid changes seen in recent years can be tion of what is in the best interests of nays 48, as follows: expected to continue; their citizens, and the Senator has an- [Rollcall Vote No. 283 Leg.] (2) the transformation of the health care swered my question. He preempts that YEAS—51 market has promoted the development of in- part of our law which does not conform Akaka Feinstein Lieberman novative new treatments and more efficient to what he thinks is right, but obvi- Baucus Ford Mikulski delivery systems, but has also raised new ously it has to reflect what we in Indi- Biden Glenn Moseley-Braun and complex health policy challenges, touch- ana think is right. So I thank the Sen- Bingaman Graham Moynihan ing on issues such as access, affordability, Boxer Grassley Murray cost containment, and quality; ator for his responses. Bradley Harkin Nunn (3) appropriately addressing these chal- Mrs. BOXER. Will the Senator yield Breaux Hollings Pell lenges and the trade-offs they involve will to me for a question? Bryan Inouye Reid Bumpers Johnston Robb require thoughtful and deliberate consider- The PRESIDING OFFICER. The Sen- Byrd Kennedy Rockefeller ation by lawmakers, providers, consumers, ator from Nebraska has the floor. Campbell Kerrey Sarbanes and third-party payers; and Mr. KERREY. Mr. President, we have Conrad Kerry Simon (4) the Patient Communications Protec- an hour of deliberation following this Daschle Kohl Smith tion Act of 1996 (S. 2005, 104th Congress) was Dodd Kyl Snowe vote on an abortion amendment and first introduced in the Senate on July 31, Dorgan Lautenberg Specter 1996, and has not been subject to hearings or Members on both sides that are anx- Exon Leahy Wellstone other review by the Senate or any of its com- Feingold Levin Wyden ious for that vote to occur have asked mittees. me to expedite it in order to be able to NAYS—48 (b) SENSE OF THE SENATE.—It is the sense do other things. And so I think we have Abraham Frahm Lugar of the Senate that the Committee on Labor debated this. I will be pleased to allow Ashcroft Frist Mack and Human Resources of the Senate, taking it to go on if I have something addi- Bennett Gorton McCain into account any relevant findings of the Na- Bond Gramm McConnell tional Commission on Health Care Quality tionally constructive, but I think peo- Brown Grams Murkowski ple pretty well have this thing laid and other public and private entities with Burns Gregg Nickles expertise in quality health care service de- Chafee Hatch Pressler down. livery, should act expeditiously in the first Mr. President, I have not made a Coats Hatfield Roth Cochran Heflin Santorum session of the 105th Congress to schedule statement on this. I hope that Mem- Cohen Helms Shelby hearings and executive session consideration bers actually will vote to waive in this Coverdell Hutchison Simpson of legislation designed to ensure that pa- case. We are trying to move in the di- Craig Inhofe Stevens tients be given access to all relevant infor- rection of managed care, particularly D’Amato Jeffords Thomas mation concerning their health care so as to DeWine Kassebaum Thompson permit such patients, in consultation with those of us who are trying to work both Domenici Kempthorne Thurmond sides of the aisle and get some agree- Faircloth Lott Warner their physicians, to make appropriate deci- sions regarding their health care, and that ment on providing incentives in Medi- NOT VOTING—1 the Senate should promptly consider that care to control costs, to increase Pryor legislation. choice, and allow people to purchase The PRESIDING OFFICER. On this Mrs. KASSEBAUM. Mr. President, into managed care. The CBO does not this amendment is very brief, if I may calculate any savings that occur as a vote the ayes are 51, the nays are 48. Three-fifths of the Senators duly cho- just explain it. It expresses the sense of consequence of people liking managed the Senate regarding communications care as a result of knowing that they sen and sworn not having voted in the affirmative, the motion is not agreed between physicians and their patients. are going to get all the information to It addresses the same issue that we purchase it and reduce taxpayer expo- to. The point of order is sustained. Mr. SHELBY. I move to reconsider have just been debating. I think we sure as a consequence. All they do is the vote. have had a good and extensive debate. calculate some marginal increase in Mr. NICKLES. I move to lay that mo- My concern with the amendment on costs that might occur as a result of tion on the table. which we just voted was that its provi- more expensive treatments being done. The motion to lay on the table was sions had not been fully considered and They offer no savings as a result of agreed to. had not been the subject of any hear- people saying we now like managed Mrs. KASSEBAUM addressed the ings in the Senate. We needed to ap- care better because of what occurs. Chair. proach the issue, I thought, in a more This is eventually going to become The PRESIDING OFFICER. The Sen- cautious way—even though there was law. Later on, we are going to pass an ator from Kansas. strong support for the concept behind amendment with a big vote that gives AMENDMENT NO. 5235 TO COMMITTEE that amendment. Federal employees the same right. AMENDMENT ON PAGE 16, LINE 16 My amendment is just saying that: They are going to have the same right (Purpose: To express the sense of the Senate It is the sense of the Senate that the Com- that the Senator from Oregon is now regarding communications between physi- mittee on Labor and Human Resources of the asking for all other people, especially cians and their patients) Senate, taking into account any relevant for Medicare patients that are out Mrs. KASSEBAUM. Mr. President, I findings of the National Commission on there who are trying to ascertain send to the desk an amendment to the Health Care Quality and other public and whether or not they want to purchase committee amendment and ask that it private entities with expertise and quality into a managed care environment. So I be considered. health care service delivery, should act expe- think especially for budget reasons, The PRESIDING OFFICER. The ditiously in the first session of the 105th CBO, with all due respect, has not cal- Congress to schedule hearings and executive clerk will report. session consideration of legislation designed culated the increased savings that will The legislative clerk read as follows: to ensure that patients be given access to all occur as a consequence of seniors in The Senator from Kansas [Mrs. KASSE- relevant information concerning their health particular saying we now have more BAUM] proposes an amendment numbered care so as to permit such patients, in con- confidence in managed care as a result 5235 to committee amendment on page 16, sultation with their physicians, to make ap- of getting all the information. line 16. propriate decisions regarding their health The PRESIDING OFFICER. The Mrs. KASSEBAUM. Mr. President, I care, and that the Senate should promptly question now is on agreeing to the mo- ask unanimous consent that further consider that legislation. tion to waive the Budget Act. The yeas reading of the amendment be dispensed This amendment is consistent with and nays have been ordered. The clerk with. the intent of the legislation offered by will call the roll. The PRESIDING OFFICER. Without the Senator from Oregon and the Sen- The legislative clerk called the roll. objection, it is so ordered. ator from Massachusetts, but puts the S10268 CONGRESSIONAL RECORD — SENATE September 11, 1996 Senate on record as supporting the use Human Resources Committee, the com- of patients in the fastest growing sec- of the standard and proper procedures mittee of jurisdiction over this legisla- tor of American health care. that I think are needed to give this tion. I am happy to yield to the Senator. issue the full and careful consideration I do not think another study is im- The PRESIDING OFFICER (Mr. it deserves. portant so much as gaining under- KEMPTHORNE). The Senator from Kan- Since we have had, I think, a full de- standing through a hearing about what sas. bate, I ask for the yeas and nays and facts are known and what points of Mrs. KASSEBAUM. Mr. President, I for the immediate consideration of this view would be expressed from different suggest that we have been in the 104th measure. aspects of the health care service deliv- Congress for 2 years. This legislation The PRESIDING OFFICER. Is there a ery industry, and then acting expedi- was introduced in the House some time sufficient second? There is a sufficient tiously. ago. It would have been useful to us second. So I assume the bill of the Senator here in the U.S. Senate if this legisla- The yeas and nays were ordered. from Oregon would be the vehicle in tion had been before us prior to July Mr. WYDEN addressed the Chair. the next Congress. Hopefully, the bill 31. We would then have had time to The PRESIDING OFFICER. The Sen- would be introduced right at the begin- hold committee hearings, which I ator from Oregon. ning of the Congress, so that there think would have enabled us to make Mr. WYDEN. Mr. President, I have would be time to look at it. I think some corrections or additions or not seen the sense of the Senate, of- that the interest in this issue is indic- changes and to understand better the fered by Senator KASSEBAUM, but I ative of the fact there is going to be a consequences of all the steps toward would like to discuss this further with great deal of interest in legislation re- the goals we do support. I think it is her. I also might say that as a new garding this subject. not fair to say all of a sudden that, be- Member of the Senate, she has been es- So I am not calling for a study. My cause a bill introduced right before the pecially helpful to me. We have worked amendment says we should act expedi- August recess has not yet been consid- on a variety of things, Food and Drug tiously, but we should review all of the ered, that means it is something we do Administration issues and the like. I pertinent information that is available. not care about. There was time in want her to understand that it has not Mr. WYDEN. Mr. President and col- which the process could have moved been particularly pleasant to spend the leagues, I hope that it is understood forward, had the bill been introduced afternoon taking different positions that while I think that the Chair of the earlier. with somebody I admire. I want her to committee means well and is sincere in Mr. WYDEN. Mr. President and col- understand that. this effort, I think that the sense of the leagues, there is no question in my Again, I have not seen a copy of the Senate that she offers today is very mind about the sincerity and good will sense of the Senate offered by the chair risky business. of the Senator from Kansas. She, along of the committee. She seeks to offer a This is September of 1996. The Sen- with Senator KENNEDY, have done, I study of this issue involving gag rules ator from Kansas essentially is saying think, an especially valuable service on medical patients; is that correct? September, October, November, De- this session with the insurance involv- We have my amendment which cember, January, February, as the next ing portability. For the first time in passed 51 to 48, but did not get 60 votes, Senate gets into business, that some- America, because of the work of the on a proposal that keeps these health time 6 to 8 months from now we can Senator from Kansas, we are going to maintenance plans from imposing gag talk again about the rights of patients make sure that workers are not going rules that keep their patients from get- in the fastest growing sector of Amer- to be locked into their jobs. They are ting a full range of information about ican health care. I think this is risky going to have a chance to enjoy the medical services and treatments and business. American dream because of their hard their health care options. It is one thing to study an issue when work. No one questions the sincerity My amendment does not deal with it is abstract, when it may not have di- and the desire of the Senator from the abortion issue. Perhaps some may rect and immediate consequences, but Kansas to tackle these very real and have thought it did. It simply deals what the Senator from Kansas is say- very human kinds of problems that af- with all of those physical and mental ing is that when you have patients fect so many of our families. health services and the treatment op- being hurt today, being subjected to I feel very strongly—and looking at tions that patients need to make deci- risk today when they do not have ac- the sense of the Senate, it calls for con- sions. cess to all the information about the sulting public and private entities with The Senate passed my amendment 51 physical and mental health services expertise and quality health care serv- to 48. Of course, it needed 60 votes. I that may be available to them when ice delivery. The fact is that the House, gather now that the Chair of the com- they need that information to make in hearings that were public, shown on mittee seeks a study of this particular decisions about their treatment, the C–SPAN and the like, did exactly that. issue. I yield to her to find out whether Senator from Kansas is saying they They had extensive discussions with this, in fact, is a study, or is this legis- cannot have it. I know that the Sen- the very people that this sense-of-the- lation with some teeth in it that actu- ator from Kansas does not intend it Senate resolution suggests we talk ally does ban these gag rules, these in- that way—putting patients at risk. with. sidious, offensive, anticonsumer gag It means that today in Oregon and in It would be one thing if there had rules that keep patients from knowing Kansas and all across the country been no discussions with these distin- about their rights? where there are gag rules that keep pa- guished people in the private sector. Mrs. KASSEBAUM. Mr. President, tients from knowing of their rights, Those discussions have taken place. no, this is not another study. It is a they will not be able to have that in- They have been held. That is why Dr. sense-of-the-Senate resolution. So it formation. It is not available to them. GANSKE, a Republican, and Congress- does not have statutory authority as The U.S. Senate is saying, instead of man MARKEY, a Democrat, came to- the language of the Senator from Or- voting for legislation or allowing me to gether and got a unanimous vote to go egon would have had. get 60 votes on my amendment, what forward and protect the rights of However, it does not call for another we will do is not give those patients health care patients in the fastest study. It simply says that the Senate the rights they need, not make sure growing part of American health care. should take into account any relevant that they can know of all the physical We have done, it seems to me, the es- findings of the National Commission on and mental health services that they sence of this sense-of-the-Senate reso- Health Care Quality which President deserve, and instead tell them that lution, No. 1. Clinton has said he would appoint and sometime next year, sometime in the No. 2, I think it puts patients at risk other public and private entities with future, we will go on. because it allows gag rules to go for- expertise in this issue and in the qual- I think it is a mistake. It puts pa- ward unimpeded in the months after ity of health care service delivery. We tients at risk. This Member of the U.S. this Congress adjourns. would consider the views of those enti- Senate is not willing to play that kind I hope my colleagues and the Senate ties at a hearing before the Labor and of Russian roulette with the well-being understand just how pernicious these September 11, 1996 CONGRESSIONAL RECORD — SENATE S10269 gag rules are. What these gag rules are of-the-Senate resolution so that, hope- it might be until the Senate might all about is that a plan may say to a fully, the next time this comes up in take this up again. It is not completely physician, ‘‘You are making too many the Senate—hopefully, later today—we clear to me what the timetable of this referrals outside the network, outside would have a bipartisan proposal that might possibly be. But I think that the health maintenance plan.’’ The would have some real teeth in it that this sense-of-the-Senate resolution plan may say, ‘‘I do not want to have a would protect the rights of patients. Is puts patients at risk. I think it jeop- referral to an ophthalmologist or a car- that acceptable to the chair of the ardizes the well-being of vulnerable diologist or another specialist.’’ These committee? people. I think it is the antithesis of are very anticonsumer provisions that Mrs. KASSEBAUM. Mr. President, sensible health care policy, which are becoming a part of American no. As I stated, I am happy to lay aside ought to be built on the patient’s right health care. They have been docu- the underlying amendment. Otherwise, to know—the right to know every- mented. They are a matter of public my sense of the Senate is open to being thing, not just those things that might record. I just think it is very risky amended. I feel that would not be a be in a planned financial interest. I business to say that instead of protect- good position in which to be placed at just can’t believe that this Senate ing the rights of the patients, instead this point. I am happy to do so and pro- wants to wrap up the discussion of this of protecting the rights of the ceed with other amendments to the bill topic by telling patients that we are consumer, what we will do is study it a and see what we can work out. That is going to be on the side of the gag rules, bit and talk to some of the same people the position I take. we are going to be on the side of those that we already talked to, rather than Mr. WYDEN. Reluctantly, I will have who want to keep you from having in- protecting those rights of the patients. to oppose the sense-of-the-Senate reso- formation. But that is what this sense- So this Senator believes that we lution. I want to take a few more min- of-the-Senate resolution does. should not have another study, should utes to tell the Senate why I am going Unfortunately, it says we won’t pro- not have yet another analysis. If I to oppose the sense-of-the-Senate reso- tect patients now. We are not going to could just briefly engage the chair of lution. stand up for them when they face these the committee, Senator KASSEBAUM, You pass the sense-of-the-Senate res- gag rules that limit their right to who I know is having some discussions olution and you are playing Russian know. I want it understood that this on several matters. But I wanted to see roulette with consumers in our health Senator is going to oppose this sense- if it might be possible to have the dis- care system. We have patients and con- of-the-Senate resolution, because it tinguished chair of the committee lay sumers who are being denied the infor- puts patients at risk. It sends the mes- aside her sense-of-the-Senate resolu- mation they need with respect to medi- sage—and perhaps some may desire to tion at this time, and perhaps we can cal services for their physical and men- do this—that the U.S. Senate is doing have some more discussion toward see- tal problems and the treatment options something to help patients when, in ing if, on a bipartisan basis, we can that are available to them. You pass fact, it is not. The earlier amendment, come up with some piece of legislation this sense-of-the-Senate resolution and the amendment that banned these gag that has some teeth in it before we what you say to those patients, in the clauses, helped patients. It helped them conclude with this bill, and that we fastest growing sector of American now, because it made sure that they recognize that a majority of Senators health care, is, ‘‘We are not on your could have access to all the informa- voted to put some real teeth into this side. We don’t want you to have any tion they need to make informed and issue. It wasn’t 60; it was 51. But a ma- rights now. We are not going to do any- thoughtful choices. jority of Senators said that they didn’t thing about these pernicious, offensive I can tell my colleagues that I come think these gag clauses were in the in- gag rules that exist today. Instead, from a part of the country that has terest of American patients. They said what we will do is go out and talk to a managed care, that has had managed this was anticonsumer. I would like to whole bunch of the same people that care perhaps longer than any other. We see—like we have done with FDA and the U.S. Congress has already talked pioneered it. We have good managed other matters—whether the distin- to.’’ care. We still have some of these guished chair of the committee and I I think that is unfortunate. I think it abuses. But I can assure you that your could work a bit further on this be- is risky business. I think that when communities and your States have a tween now and the end of the day and you have patients who are in jeop- whole lot more of these problems than perhaps come back to the Senate with ardy—and make no mistake about it, we do. a bipartisan proposal that really would that is what happens when you have I think it is going to be very, very provide a measure of relief to patients these gag rules. These patients are in hard to go home and explain to pa- at this time. jeopardy. They are not being told what tients, explain to doctors—because doc- Now, to do that, the Senator from they need to know as it relates to es- tors have endorsed this effort to elimi- Kansas would have to lay aside her sential health services and the infor- nate the gag rules—how it is in the sense-of-the-Senate proposal. I just ask mation they need. public interest. I cannot possibly be- if she would be willing to do that at I will tell you, I am just absolutely lieve that you can stand up at a com- this point, and during the interim, I baffled at how the U.S. Senate can say, munity meeting of physicians, pa- ask that she and I and Senator KEN- at a time when patients hunger for in- tients, or citizens and say we are not NEDY and our respective staffs, on a bi- formation about health care services, going to give you the information you partisan basis, see if we can come up at a time when they want to get it on need about medical services and medi- with a bipartisan proposal that would the Internet, at a time when they can cal treatments. But instead of giving really have teeth in it and protect the go to special programs offered by you the information that you need we rights of the patients. health care providers, just to know are going to have a gag rule, and you I yield to the Senator from Kansas. about new treatments and options, I can’t find out about your rights. Mrs. KASSEBAUM. Mr. President, I can’t understand how the U.S. Senate Mrs. BOXER. Will the Senator yield have no objection to setting aside the would then say that we are going to to me for a question? underlying committee amendment, if stiff those patients, we are not going to Mr. WYDEN. I will, and I want to that is the wish of the Senator. I give them the information they need, yield to Senator KERREY who has been thought, actually, we could voice vote we are not going to tell them what helping me for the better part of 24 the sense of the Senate. There are they need to know to make the essen- hours. many other amendments that will re- tial decisions about the treatment and Mrs. BOXER. I will be very brief. I quire lengthy debate. If we want to set the services that they think are best wonder if the Senator knows that be- aside the entire amendment, that is for them. fore he happily came to this body we fine. I am happy to do so, so the debate So I think that this sense-of-the-Sen- made an incredible contribution to the can proceed on other amendments. ate resolution puts patients at risk. It whole country when we passed a Sense Mr. WYDEN. If I might say further, I means that we are not going to get any of the Senate on this subject. That was asking the chair of the committee help for patients who need it now, who happened to be a Boxer amendment to lay aside, for the moment, her sense- can’t wait 6, 8, 10 months, or whenever that was endorsed by Senator KENNEDY S10270 CONGRESSIONAL RECORD — SENATE September 11, 1996 which put the Senate on record as say- Mr. KERREY. Mr. President, I want- ing side, the side that wishes to strike ing that patients have a right to know ed to ask the Senator from Oregon if he the committee language, to go first. the treatment options that are avail- would be willing to allow the underly- Clearly the Senator from California able to them. It was very straight for- ing amendment to be set aside so we and the Senator from Nebraska are ward. Unfortunately, what happened as can proceed to the next item of busi- very pleased with the action of the a result of some of the games that are ness under the unanimous consent committee and support the committee. played around here is that Sense of the agreement and come back to the I think it is most appropriate for those Senate was dropped from the con- amendment. We have an hour agree- wishing to strike the committee lan- ference after everybody voted for it. ment for the next amendment, and we guage to proceed at this time. Then we I think the time has come to do what can come back to it. can respond. the Senator from Oregon has sug- Mr. WYDEN. The Senator from Ne- Mr. DEWINE addressed the Chair. gested, and I think the fact that the braska has been very helpful. I appre- The PRESIDING OFFICER. The Sen- Senator from Oregon got 51 votes ciate it. That is acceptable to me. ator from Ohio is recognized. shows that the Senate is ready to move Mr. SHELBY. Parliamentary inquiry. Mr. DEWINE. Mr. President, I yield forward on his amendment and not We set aside the committee amend- myself such time as I need. study this to death. Because frankly, if ment, and then the Kassebaum amend- The PRESIDING OFFICER. Without you study this to death people are ment which is the second degree, then objection, it is so ordered. going to die. We heard stories in Cali- we go under the UC to the pending Mr. DEWINE. Mr. President, let me fornia where people did not know their committee amendment, as I under- first say that this very same issue was treatment options, and tragedies stand it. Is it the committee amend- debated by this body last year in our flowed from that. ment, and then the Kassebaum amend- consideration of the Treasury-Postal I want to underscore what the Sen- ment in the second degree. Is that cor- Service appropriations bill. ator is saying. I say to my friend from rect? Mr. President, at that time this body Oregon that I am glad that he is being The PRESIDING OFFICER. That is voted 50 to 44 to accept the very lan- tough on this. I think there are a lot of correct. guage that the amendment before us people around here that want to vote Mr. SHELBY. If we set aside the asked us to strike. So this Senate has for meaningless things so they can go committee amendment and the Kasse- already voted in this same context to home and say, ‘‘Yes, I didn’t vote for baum second degree, at the end of the restrict Federal funds for abortion, spe- the Wyden amendment but I voted for hour of debate, which we have already cifically to restrict the use of Federal the sense of the Senate.’’ And I think gotten a UC on, we would automati- funds for abortion coverage of the Fed- what the Senator is doing by being, I cally come back to the committee eral health care plans to cases of rape, would say, very strong although very amendment and the Kassebaum amend- incest, or the life of the mother. respectful and very aware of the way ment. Is that correct? Mr. President, I wanted that noted he has presented. He is saying that the The PRESIDING OFFICER. That is out front so that we all realize that we time for these meaningless studies has correct. Once the next committee are not covering any new ground. This come and gone, and we need to get to amendment is disposed of, then we is something that should not take, the business of saving lives. would return to the underlying com- frankly, very much of the Senate’s I wanted to thank the Senator. I mittee amendment which also has the time. again repeat my question: Was the Sen- Kassebaum amendment on it. Mr. President, the issue of abortion ator aware that we did go on record Mr. SHELBY. I ask unanimous con- is an important matter of conscience several months ago on this issue? sent to set aside the committee amend- to millions of Americans. We tried to Mr. WYDEN. I very much appreciate ment and the second-degree amend- promote our views in the democratic the Senator from California making ment to it, the Kassebaum amendment, arena. We seek to embody these views me aware of this. I was not. It just so we can go forward. in our Nation’s laws. As someone who seems to me, as the Senator has indi- The PRESIDING OFFICER. Is there is pro-life I worked, obviously, to pro- cated, that it is time to act. Before I objection? Without objection, it is so mote the value of and protect the inno- came to the Congress and served in the ordered. cent human life. But, Mr. President, House where we served together, I was EXCEPTED COMMITTEE AMENDMENT BEGINNING the discussion of this amendment is head of a senior citizens group, a great ON PAGE 80, LINE 20 THROUGH PAGE 81, LINE 4 much more narrow. The discussion of panel. I had not run for public office The PRESIDING OFFICER. The this amendment does not need to reach before. I had never been involved in clerk will report the next committee that moral level of debate. The key public office. When we started that sen- amendment. question in regard to this amendment ior citizens group we said we are going The bill clerk read as follows: that we have to answer simply is this: to focus on the good ideas that help Beginning on page 80, strike line 20 Should taxpayers pay for these abor- people. We do not care whether they through page 81, line 4. tions? are Democrat. We do not care whether Mrs. BOXER addressed the Chair. Again, I emphasize the Senate spoke they are Republican. We are just going The PRESIDING OFFICER. The Sen- last year by a vote of 50 to 44 and said to focus on the ideas that help people. ator from California. no. I think that is what Dr. GANSKE did Who yields time? I believe that we should not ask the when he took this up in the House, a Mrs. BOXER. I wonder if we could taxpayers to promote a policy of abor- Republican physician, who said that hear what the unanimous consent ex- tion on demand. This amendment that what we need to do is help people. We actly was. I am going to move to table after we certainly are not helping people by The PRESIDING OFFICER. The conclude our debate would strike the having these gag rules that keep people unanimous-consent agreement would House language on this subject and from knowing about their rights much. be to set aside the underlying commit- would change current law. Our posi- So the House, as we have discussed, tee amendment, which is the second tion, my position is to retain current and in the committee on a unanimous committee amendment which also con- law, to retain what the Senate did last basis, said we are going to stand up for tains the Kassebaum second-degree year by a vote of 50 to 44, and to retain the patients, we are going to stand up amendment. We would then go to the the current House language. I believe for the providers, the vast majority of third committee amendment. With we should retain this language that doctors who are honest and ethical, that amendment, 30 minutes are under permits Federal employee health plans and want to tell their patients about the control of the Senator from Cali- to cover abortion only in the cases of their rights. And it made great biparti- fornia, and 30 minutes under the con- rape, incest, and threats to the life of san progress. trol of the Senator from Oklahoma at the mother. In essence, this is a Hyde That is what I want to do here. I which time the motion to table would amendment-type debate. know the Senator from Nebraska has be in order. The vast majority of Americans, 69 been trying to help me for the better Mrs. BOXER. Mr. President, I think percent, in a 1992 ABC-Washington part of 24 hours. I want to yield to him. it would be appropriate for the oppos- Post poll said they opposed taxpayer September 11, 1996 CONGRESSIONAL RECORD — SENATE S10271 funding for abortions for low-income even in matters of rape or incest, and pital, a military hospital, and have a individuals. we know that many here who speak out safe and legal abortion which could po- If that many people oppose subsidiz- on this issue and that is really their tentially save her life—that right has ing abortions for poor people, I think whole desire. been taken away. This Congress has there would be even more opposition to The fact is, abortion is legal in this been chipping away at a woman’s right subsidizing abortions for higher income great land. to choose. Government workers. The reality is My friend and colleague says we are I am so proud of this committee that in every single poll I have ever trying to stop abortion on demand. which took a stand against the extre- seen done, the vast majority of Ameri- There is no such thing as abortion on mism of the House of Representatives cans, whatever their position on the demand in this country. There is a Su- and restored the rights of women who issue of abortion, say no taxpayers preme Court case called Roe versus are Federal employees to use their own funding. Wade. Yes, a woman has the right to insurance for which they pay a per- We should make no mistake about it. make this personal, private decision centage, to exercise a perfectly legal This is a taxpayers subsidy. In 1995, the without a U.S. Senator telling her right. Federal Government paid an average of what to do in the first 3 months of her Mr. President, I should like to re- 74 percent of the cost of a Federal em- pregnancy. She has the right to make serve the remainder of my time. The PRESIDING OFFICER. Who ployee’s health premium. That is tax- that decision with her doctor and her yields time? payer money. I suggest it is wrong. I God without the Senator from Ohio or Mr. DEWINE addressed the Chair. think we should leave the taxpayers another State who holds an opposite The PRESIDING OFFICER. The Sen- out of the whole debate and out of the view essentially saying, no, we do not ator from Ohio. whole issue. Therefore, I believe we think that is right. Mr. DEWINE. I yield myself 1 minute. should support the House language, She can make that choice under Roe Let me just briefly respond. This is that we should support current law, versus Wade. After that, the State has not an issue of equal treatment. This is and that would mean tabling this an interest, and rules apply to that not an issue of that at all. It does not amendment. abortion. So there is no such thing as tell anyone what to do. I think we need In summary, then, this matter has abortion on demand. to keep our eye on the ball and discuss been debated time and time again on The bottom line is, this is a tough, not the whole issue of abortion here this floor. The issue is a narrow one, a personal, private matter, and I really today. I think it is important we dis- very narrow one, and it is simply this: think it is about time we trusted cuss what is in front of us. What is in Should taxpayers’ dollars, all tax- women to make that choice. Why front of us is a very narrow issue, and payers in this country, be taken by the should we say that a woman who hap- that simply is, are we going to use Fed- Federal Government and used to sub- pens to work for the Federal Govern- eral tax dollars to subsidize, pay for sidize and fund abortions? Current law ment or her dependents should not abortions? says no. Current law limits abortion have this right? The vast majority of the American availability in Federal employee My friend says we disposed of this people say, no, we see absolutely no health care plans to cases of rape, in- matter on a vote before. Yes, we did. reason to do this. On an issue as con- cest, and to save the life of the mother. As a matter of fact, in 1993, in this Sen- tentious as this is and where there are That is current law. That is what the ate, before my friend got here, we re- good people on both sides of the battle, Senate voted for last year. That is the stored the rights of women in the Fed- why in the world we would say, this House position, as well. eral Government to be treated equally. Congress would say we are going to I might add that when we went I really do not think women are asking take Federal tax dollars to subsidize through this debate last year, ulti- for much here other than to have equal abortions makes absolutely no sense. mately the House acquiesced in the treatment, to be respected for the Let me at this point yield to my col- Senate’s three exceptions. These were choices that they make, and, unfortu- league from Indiana 10 minutes. Mr. COATS. Less than that, 5 min- our exceptions from the Senate. They nately, what this amendment will do utes. acquiesced, and that is where we are by disagreeing with the committee of Mr. DEWINE. I yield 5 minutes. today. My motion to table would sim- the Senate is to tell a woman who hap- The PRESIDING OFFICER. The Sen- ply restore current law. pens to work for her Government, she ator from Indiana is recognized for up At this point, I reserve the remainder cannot use her own insurance to exer- to 5 minutes. of my time. cise a perfectly legal right. Mr. COATS. Mr. President, the Sen- The PRESIDING OFFICER. Who My friends in the Senate, I have to ator from Ohio essentially made the yields time? say, if there was an amendment to stop points I was going to make in response Mrs. BOXER addressed the Chair. a man who happens to work in the Fed- to the Senator from California, who I The PRESIDING OFFICER. The Sen- eral Government from getting a per- think has mischaracterized the issue ator from California is recognized. fectly legal medical procedure, one before us. The issue before us has noth- Mrs. BOXER. I yield myself 7 min- that might protect his health, there ing to do with a woman’s right to have utes. would be an uproar around here. They an abortion. It has nothing to do with The issue as presented by my friend would say, how could you do that to an amendment that, in her words, de- and colleague from Ohio is quite dif- the men of this country? Why not treat nies the choice of women, takes away a ferent, in my view, from the way he the men who work for the Federal Gov- woman’s right to choose. It is not an put it forward to the American people. ernment the same way we treat men amendment to stop anyone from get- To me, the question is clear: Should who work in the private sector? ting a perfectly legal procedure accom- women Federal employees or their de- The answer, in this particular case, plished. So I think it is important for pendents be treated the same as other with this particular amendment, is you our colleagues to understand what the women in the work force or should cannot win your point with the Amer- amendment does and what it does not they be singled out, punished, have ican people. You do not have the votes do. their rights taken away from them and in this country to put Government in This is not a debate on whether or be treated differently? the middle of this personal, private de- not a woman has a right to an abor- We get into a lot of debate in the cision. And so what do you do? Every tion. I have suggested for a number of Senate on very important issues. None chance you get, I say to my colleagues years, ever since I have been in the could be more important than this, re- on the other side of this issue, you chip Senate, that we ought to have that de- gardless of the way you view the issue away and you chip away and you chip bate. We have had that debate on occa- on abortion. And we know in the Re- away at the right of women to choose. sion. But this is not the debate we are publican platform, the platform com- If you are a woman today, what this having today. The debate we are hav- mittee adopted a platform which would Congress has done in its extremism, I ing today is on the amendment offered criminalize abortion, urging adoption say, is to tell a woman who is willing by the Senator from Ohio, which sim- of a constitutional amendment which to die for her country by serving in the ply restores to the Senate bill the lan- would deny women the right to choose military that she cannot go to a hos- guage that was incorporated in the S10272 CONGRESSIONAL RECORD — SENATE September 11, 1996 House, that says, except in the cases should be placed on abortions, the fact, cover that if they so chose. where the life of the mother is in jeop- whole idea of Roe versus Wade, the Su- Whereas in this particular amendment ardy or in cases of rape or incest, the preme Court decision. Those are all is- we are saying no one, no one who taxpayer will not be asked to fund sues that are legitimate issues but works for the Federal Government, abortions chosen by a woman under the have nothing to do with this amend- through the Federal Employees Health Federal Employees Health Benefits ment. Benefits plan, can get such a policy. We plan. So let us make sure that we focus on are restricting the freedom of the There are a number of perfectly legal what the amendment seeks to do and women who work for the Federal Gov- procedures, medical procedures, that what the amendment does not seek to ernment. are not covered by the health insur- do. I have more I can say in this re- Mr. COATS. We checked with ance plan. Not every health insurance gard, but I think in the interests of Planned Parenthood and asked them plan covers every procedure. I do not time here, since my 5 minutes is up, I that question. They disagreed with know what percent of private insur- will cease at this point and then we what you just said. They said there is ance policies cover the cost of abor- will talk about it, but let us keep the no way, they do not have specific infor- tion, but that is not an issue either. discussion focused on what the amend- mation about the availability of abor- The question is whether or not the ment is all about. tion coverage, how many insurance Federal Employees Health Benefits The PRESIDING OFFICER. The Sen- policies cover it, how many do not. plan, which every Federal employee ator from California. The point is, it is not an accurate participates in, will cover abortion. Mrs. BOXER. I will take 1 minute statement to say we are denying There are, as I said, a number of proce- and then I will yield 5 minutes to one women who work for the Federal Gov- dures that are not covered. That is a of the leaders on this issue, Senator ernment the opportunity that all matter of determination by the organi- MIKULSKI. Let me just respond briefly. women have. That is not an accurate zation that provides the insurance. We To hear Senators say this has noth- statement. have the ability to select from a num- ing to do with a woman’s right to Mrs. BOXER. Maybe my friend would ber of different insurance plans. But choose, makes me think sometime that appreciate we know that 78 million the issue is whether or not the tax- we are in never-never land around here. women—— The PRESIDING OFFICER. The Sen- payer will be asked to pay for it. Of course it has something to do with a This is not just another medical pro- woman’s right to choose. You are tell- ator’s time has expired. Mrs. BOXER. On my time, if I might cedure. This is a procedure that is ex- ing more than a million women, more respond, we know for sure that 78 mil- traordinarily controversial, where than 1 million women, who happen to lion women in the private sector do af- American opinion is divided, where work for the Federal Government or firmatively have this choice. So we taxpayers, for religious reasons, moral rely on the FEHBP for health insur- have 78 million women that we know of conscience reasons, and other reasons ance that they should be treated dif- who have this choice but the 1.2 mil- feel they should not have to use their ferently when it comes to their right to lion women who work for the Federal tax dollars to pay for something they choose. They work hard. They ought to Government or are dependents of Fed- believe fundamentally violates their be trusted. So, it is all fine to stand eral employees do not have the choice religious beliefs, their moral convic- here and say it is being and cannot have the choice if the Sen- tions. mischaracterized, it has nothing to do ators on that side of the aisle prevail. This is a debate we have had now for with the right to choose, but if you are Mr. President, I yield 5 minutes to 20 years, and pretty consistently over a Federal employee and, let us say, you our leader on this committee, along the last 20 years, with a couple of ex- earn $20,000 a year and you pay for a with Senator KERREY, Senator MIKUL- ceptions, the Congress, whether it has percentage of your health insurance SKI. been a Democrat-controlled Congress and you cannot get an abortion with The PRESIDING OFFICER. The Sen- or a Republican-controlled Congress, that health insurance, even if your doc- ator from Maryland is recognized for 5 has pretty consistently supported the tor says you might be paralyzed for minutes. proposition that taxpayers should not life—because there is no exception for Ms. MIKULSKI. Mr. President, I rise be coerced into paying for a procedure that—I assure you we are talking re- in very strong support of the commit- which many of them feel violates some ality. We are not talking something tee amendment and in opposition to of their most deeply held beliefs. That that does not really exist. This is a real the Nickles amendment. has been, as I said, supported by both threat to a woman’s right to choose if As a member of the Senate Appro- Democrats and Republicans. Demo- she is a Federal employee. priations Committee and a member of crats controlled the House throughout Mr. COATS. Will the Senator yield the Subcommittee on Treasury and the decade of the 1980’s and the early on that point for a question? Postal Services, we made very clear in 1990’s, and the Hyde amendment, which Mrs. BOXER. I cannot yield on my the committee the dominant view in is essentially what the Senator from time, but if you use your time I will be the committee is that we wanted the Ohio was offering, was supported by glad to, because I do not have enough women of the United States of America both parties. It has been supported time. to be able to have abortions where here in the U.S. Senate. It says that, Mr. DEWINE. I yield my colleague 1 medically appropriate in their health except in those instances of rape, in- minute. insurance legislation. This bill was re- cest, and protecting the life of the Mr. COATS. I understand. We will ported by the Senate Appropriations mother, we will not ask the taxpayer use our time. I would like to ask a Committee, and it would enable Fed- to pay for it. question. eral employees whose health insurance Since the Federal Government sub- The Senator from California said we is provided under the Federal Employ- sidizes our insurance costs—up to are denying women who work for the ees Health Benefits plan to receive cov- about 74 percent, I think is the latest Federal Government the same rights erage for abortion services, subject to figure—clearly, the cost of an abortion that all other women have. all the traditional laws of the land. would be subsidized and paid for, at Are you saying that every insurance The Nickles amendment would rein- least three-fourths of it would be sub- policy in America has coverage for state the language from the House bill sidized and paid for, by the Federal abortion and therefore every other which prohibits coverage for abortion taxpayer. That is why the amendment woman in America has the right to except in the case of life is being offered. have an abortion paid for under her in- endangerment, rape, or incest. It would So I think it is important we focus surance policy? Or, are there different continue a ban which has prevented on the amendment that is here. We can policies, some that offer it, some that Federal employees from receiving the reserve time—I am sure both sides do not offer it? health care service which is widely, if would be willing to accommodate it at Mrs. BOXER. The vast majority of not totally, available for private sector some point—to discuss the larger issue plans do offer abortion, and in the pri- employees. of abortion: the meaning of life, when vate sector most women have the op- We think limiting it to life of the life begins, what restrictions if any portunity to find a plan that would, in mother, rape, or incest is medically September 11, 1996 CONGRESSIONAL RECORD — SENATE S10273 dangerous. We believe the decision medical care. We know that access to Would my friend support an amend- should be made by the mother, with reproductive health services is essen- ment that said that women Federal the consulting physician, using what- tial to women’s health. We know that employees who do, in fact, exercise ever is her religious conviction to be restrictions that make it more difficult their right to choose and use their in- able to proceed with something that is for women to obtain early abortions surance could be reimbursed for the deemed by the physician as medically where medically appropriate increase portion of the premium which they appropriate. We leave that decision to the likelihood that women will put paid themselves which, in this case, is be made not on the floor of the Con- their health at risk by being forced to about 28 percent? Would my colleague gress but in a doctor’s office. continue a high-risk pregnancy. If we work with me on such an approach so The 104th Congress has been a tough continue to ban the abortion services at least they can get reimbursed for one to support a woman’s right to and leave only these very narrow ex- the portion of their share of the pre- choose in that most private of matters emptions, these 1.2 million women of mium? not to have a child. Bill after bill after reproductive health age who depend on Mr. DEWINE. I am not sure how that bill after bill, we have faced votes on FEHB will not have access to abortion will function, how that will work or women’s reproductive rights. even when their health is seriously how to mechanically get that done. In the 104th Congress, between the threatened. We are going to be replac- The bottom line is, in fact, you can buy House and the Senate, this Congress ing the informed judgment of medical riders, you can, in fact, buy separate has voted 51 times on this issue. The practitioners with that of politicians. policies. 104th Congress has been unprecedented Let me conclude by reiterating that All we are saying is, when the latest in its assault also on Federal employ- decisions on abortion should be made study shows 74 percent of the pre- ees—their pay, their benefits and their by the woman in close consultation miums are paid by other taxpayers, it livelihoods. What we have with this with her physician. Only a woman and is a legitimate issue. amendment is a vote on abortion and her physician can weigh her unique cir- Mrs. BOXER. I say thank you to my also on the basic benefit package for cumstances and make the decision as friend and take back my time. I think Federal employees. to what is medically necessary and this points out for all the American I represent over 280,000 Federal em- medically appropriate. It is wrong for people to see that this is not about ployees in the State of Maryland, the Congress to try to issue a blanket pro- Federal funds, because I just made a Social Security Administration that hibition. very reasonable proposal that since makes sure the checks go out on time, I will vote ‘‘no’’ on Nickles and up on women pay approximately 28 percent of the National Institutes of Health that the committee amendment. their premiums out of their own pock- right now are doing research to ensure I yield the floor. et, why not allow them to get this cov- The PRESIDING OFFICER. Who the saving of lives. erage and reimburse them for 28 per- yields time? We want the very people who are able cent of the cost of the procedure? My Mr. DEWINE addressed the Chair. to do research on fertility and repro- The PRESIDING OFFICER. The Sen- friend says he doesn’t know how it duction to be able to have access to ator from Ohio. would work. We figure out a lot tough- what is medically necessary in terms of Mr. DEWINE. Mr. President, I yield er things around here. the relationship of abortion. myself such time as I may consume. Mr. President, I yield 5 minutes to Federal employees have faced assault Very briefly, let me say, again, this my friend—— after assault in these last 2 years. They is not a debate about abortion. This is The PRESIDING OFFICER. The Sen- face tremendous employment insecu- not a debate to determine what a per- ator from Ohio had not relinquished rity, downsizing, and so on. I view this son can do or cannot do. That is not the floor. He responded to a question amendment as yet another assault on what is at issue here. What is at issue from the Senator from California. these public servants. It goes directly here is what will be covered. What is at Mrs. BOXER. I am sorry. I reserve after the benefits of Federal employ- issue is whether or not Federal tax dol- the remainder of my time. ees. lars taken from all Americans, many of Mr. DEWINE. I yield to my colleague Health insurance is part of the com- whom find this procedure to be abhor- from Indiana. pensation package to which they are rent, whether or not we will involun- Mr. COATS. Mr. President, I would entitled. The cost of insurance cov- tarily take their money to pay for like to address the question just asked erage is shared by the Federal Govern- abortions. by the Senator from California. ment and by the employee. I know that Congress has voted time and time The PRESIDING OFFICER. The Sen- the proponents of continuing the ban again not to do that. The vast majority ator from Indiana is recognized. on abortion coverage for Federal em- of the American people in every public Mr. COATS. I say to the Senator ployees say they are only trying to pre- opinion poll anyone has seen indicate from California, who asked would we be vent taxpayer funding of abortion, but they do not want that done. It is a willing to accept an amendment which that is not what this debate is about. very, very narrow issue. would allow reimbursement for an This is about prohibiting the com- Let me read the current law. Our po- abortion for that portion of the pre- pensation package of Federal employ- sition is the current law simply should mium which is paid for by the Federal ees from being used for a legal and be sustained: employee, again, I think the Senator sometimes vital medical service. No funds appropriated by this act shall be misses the point here. Health insurance is part of the Federal available to pay for an abortion or adminis- From one standpoint, she is saying employee’s pay. The decisions related trative expenses in connection with any these women have no other place to go, to health care should be made between health plan under the Federal Employees they can’t get an abortion. One-fourth the patient and the physician. Health Benefits program which provides any the premium is $62, if it is a $250 abor- If we were to extend the logic of benefits or coverage for abortions. The provi- sion of this section shall not apply where the tion. I have been told that is the going those who favor the ban, we might next life of the mother will be in danger if the rate for an abortion. So are you telling prohibit Federal employees from using fetus were carried to term, or the pregnancy me that an employee of the Federal their own paychecks to pay for an is the result of an act of rape or incest. Government who has a job, a full-time abortion. No one is seriously suggest- Mr. President, let me yield to my col- job, who is working for the Federal ing that Federal employees ought not league from Oklahoma. Government is unable to come up with to have the right to do what they want Mrs. BOXER. Will the Senator yield $62 in order to pay for an abortion? with their own money. We should not for a question? I will be happy to do it Mrs. BOXER. May I respond on my be also placing unfair restrictions on on my time. friend’s time? I will be brief. the type of health insurance that Fed- Mr. DEWINE. On your time, fine. Mr. COATS. I would like you to re- eral employees can purchase under Mrs. BOXER. My colleague keeps re- spond on my time, but you did not let their own Federal Employees Health iterating, as do my other colleagues on me respond on your time. Benefits plan. the other side, that this is about Fed- Mrs. BOXER. I will tell you what I Over 1.2 million women of reproduc- eral funds and people oppose spending will do for my friend, I will respond on tive age depend on the FEHB for their Federal funds. my time. S10274 CONGRESSIONAL RECORD — SENATE September 11, 1996 Mr. COATS. That is what you asked We are debating whether or not Con- liberty and their private lives. This is me to do. That is appropriate. gress will, for yet another year, deny yet another intrusion in the private Mrs. BOXER. The Senator is right. I Federal employees a benefit available lives and private liberties of women, in should respond to him on my own time. to most women who work in the pri- terms of the exercise of their Federally He is perfectly correct. vate sector. It is common practice in constitutionally protected rights. I I say to my friend from Indiana, he the health insurance industry for pri- suggest that this amendment ought to says I miss the point. I say, those on vate health care plans to cover com- be denied. I yield the floor. the other side of the aisle, who are try- plete reproductive services, including The PRESIDING OFFICER. Who ing to deny Federal employees their pregnancy, childbirth, and abortion. yields time? equal rights, miss the point. If your ar- This is because most women want the Mr. DEWINE. Mr. President, I yield gument is that taxpayers do not want right to choose. It is also because it is to my colleague from Oklahoma 5 min- their funds used, I am giving you a way better medicine, as Senator MIKULSKI utes. out of this, in fairness. If my friend pointed out in her statement. The PRESIDING OFFICER. The Sen- thinks $62 is not a lot of money, let me In addition, this motion would re- ator from Oklahoma is recognized for 5 point out to him a fact. Twenty-five strict access to earned benefits. I think minutes. percent of the Federal employees earn this is a very important point. Federal Mr. NICKLES. Mr. President, first, less than $25,000, and 18,000 Federal em- employees pay a portion of the cost of let me compliment my colleague from ployees are at or below the Federal their health care benefits. A Federal Ohio and also my colleague from Indi- poverty level. employee chooses a Federal health ben- ana for their statements. Let me kind I say to my friend, $62 is a lot of efits package and then pays a monthly of try to put this in perspective. Sen- money for those people. But let us face fee to their chosen health care plan. ator DEWINE raised a concern about a the fact, you do not even want to go Employees are free to choose from committee amendment. At some point that far and allow them to get that re- some 342 plans, 178 of which would not he will have a motion to strike the imbursement. My question, I think, cover abortion even if they could. The committee amendment or to table the really smoked out the true attitude on employee chooses a plan and then pays committee amendment. the other side of the aisle. This is not for part of it. What is he doing? What does this about Federal taxpayers’ dollars; this The balance of the premium is an mean? Well, last year the House and is about chipping away at a woman’s earned benefit, which is compensation. the Senate agreed to language that right to choose. It is very clear. You It is part of their pay, their compensa- said we are not going to use Federal know, at the convention in San Diego, tion. Let me repeat for those who may taxpayers’ money to include abortion we saw what the goal is. This is chip- not understand this point. It is not a as a fringe benefit in health care plans ping away wherever you can. gift from the Federal Government to except in cases of rape and incest and I yield 5 minutes to my friend from its employees. It is earned by those em- to protect the life of the mother. Illinois. ployees, including women employees. One of my colleagues mentioned, The PRESIDING OFFICER. The Sen- Approximately 9 million Federal em- well, we should be consistent. That was ator from Illinois is recognized for 5 ployees, their dependents, and Federal the policy of the Federal Government, minutes. retirees depend on Federal benefits for frankly, from 1984 to 1993, until Bill Ms. MOSELEY-BRAUN. Thank you their health insurance. This includes Clinton became President. He changed very much, Mr. President. I thank the 1.2 million women of reproductive age it. That lasted in 1994 and 1995. We Senator from California. who rely on the Federal Employee changed it last year. We had a vote. We In spite of the fact that the majority Health Benefits program. The restric- actually had a kind of unusual session. of the American people embrace the tions that this amendment would We had a Saturday session. We had freedom of reproductive choice, the ef- renew would prevent 1.2 million women three votes on it and basically ended forts to use Government intervention from receiving the full reproductive up with the policy that the Senator as a bar to the right to choose contin- health services that their doctors from Ohio is trying to maintain. ues. Every year that I have been in the might want to provide for them. What is that policy? That policy is Congress, and 9 years before that, we Since 1983, Mr. President, Congress the same thing that was in the House have had to consider whether or not fe- has changed the rules in this area not language, that being that Federal tax- male Federal employees should be able once, not twice, but four times. We payers’ moneys will not be used to pro- to choose a health plan that includes have literally been playing political vide abortions for Federal employees abortion as part of its reproductive ping pong with women’s reproductive unless necessary to protect the life of health services. health. I urge my colleagues to just put the mother or in cases of rape or in- We have not been considering wheth- this issue to rest and allow women full cest. That was last year’s policy. That er or not these women have the right access to health benefits and full ac- is what the House is trying to main- to abortion. The Supreme Court af- cess to the constitutionally protected tain. That is what the Senator from firmed they do over 20 years ago. This right to choose. Ohio and Indiana and myself are trying issue, the one we are considering, is Most women who choose to have an to maintain, to continue last year’s whether or not we should prevent their abortion do not use their insurance policy. insurance from covering the procedure. coverage to pay for it. Most women The committee had an amendment to In reality, we are considering wheth- want to keep the matter private. But strike the House language. That would er or not we should put barriers in the even if most women do not use the ben- open it up and that would allow Fed- way of our own employees exercising efits, there is a matter of principle that eral employees to receive taxpayer sub- their constitutionally protected rights. the benefits should not be denied to sidies to pay for abortion. We did not I do not—and this is a matter of public them. We should remove the intrusion agree with that last year. We did not record—I do not personally favor abor- of politics from earned Federal em- agree with it for 10 years, 1984 through tion. My own religious beliefs hold life ployee benefits and from the private 1993. Bill Clinton wanted to change it. dear, and I would prefer that every po- health decisions of our employees. This We changed that back last year. We are tential child have a chance to be born. Congress should not continue to play trying to maintain last year’s policy. I do, however, believe fundamentally politics with women’s lives and wom- We had two or three votes on it, as I in the right of every woman to make en’s health. mentioned, in an unusual Saturday ses- her own private decision concerning In conclusion, Mr. President, I would sion. her pregnancy. I cannot fathom telling say, as I mentioned in another debate, I remember my colleague from Ohio my employees, or any employee in the for those who urge smaller Govern- stayed here. He had a very important Federal Government, that they cannot ment, I would point out that here is an- family meeting in Ohio, and he stayed fully exercise their constitutionally other instance in which those who tell here to vote on this because he felt protected right to choose because Con- us that the issue and the objective is that it was important. I will never for- gress was playing politics with their smaller Government, only say so when get that, because we literally are talk- health insurance plans. it does not relate to people’s personal ing about, do we want abortion to be a September 11, 1996 CONGRESSIONAL RECORD — SENATE S10275 fringe benefit in health care plans? choose, yet we hear a speech about de- Mr. President, I think what is being Some people say, well, you are attack- stroying an innocent life. Let me say attempted here is a very, very, unfair ing a woman’s right to choose. We are this is very much about the right to move against employees of the Federal saying, no, it should not be a standard choose and the right of a woman to Government. fringe benefit. make a private personal decision with Last, here is a notice that came out Abortion is not another standard her own physician, to be able to use her last year after this prohibition was health procedure. It happens to be tak- insurance that she pays for, and yet passed in the Congress. ing the life of an innocent, unborn when I offer to my friends to talk Dear Blue-Cross and Blue-Shield benefit child. Do we really want the Federal about a way to at least reimburse her plan member: Government to subsidize that? A lot of for the portion that she pays out of her On November 19, 1995, public law [so and people think, well, maybe that should own pocket, he says no, there are ex- so] was enacted which limits the Federal be a woman’s right, but we should not cuses and reasons why we could not do Employees Health Benefit plans coverage of be subsidizing it. If this amendment that. legal abortions. does not pass, we are going to be subsi- This is, frankly, an attack and as- And then it says to the whole of the dizing it. Taxpayers pay for about sault on a woman’s right to choose. It plan that they no longer can cover three-fourths of it. is aimed at Federal employees. My that. You are out of luck. If you are in So when I think of that and I think friends would love to aim it at every the private sector, as I said, you can of what kind of protections we give to woman in America. They cannot do it. get this, but you cannot get it any unborn endangered species, thousands They do not have the votes to do it. So longer if you are a Federal employee. of endangered species—we have signifi- they chip away. There are 345 plans and none of them cant protections. As a matter of fact, if I yield 4 minutes to the Senator from can be permitted to offer it. I think it you destroy their unborn, you can be Rhode Island, Senator CHAFEE. is very, very unfortunate, Mr. Presi- subjected to prison, you can be sub- The PRESIDING OFFICER (Mr. dent. jected to $50,000 fines—but not for un- SMITH). The Senator from Rhode Island I hope the attempt to defeat the born children. We are not even trying is recognized for 4 minutes. amendment is not successful. Mr. CHAFEE. Mr. President, I will to elevate unborn children to the pro- Mrs. MURRAY. Mr. President, I rise take a few minutes to speak in favor of tected status of endangered species; today in opposition to the motion by the committee amendment. What this but we are trying to say: Taxpayers, the Senator from Ohio, and in support committee amendment would do is of full access to reproductive health you should not have to subsidize the allow the Federal employees health destruction of innocent, unborn human care, including abortion services, for program to resume coverage for abor- civil servants. beings. tion services. Unfortunately, and I be- That is what the DeWine amendment Last year, as my colleagues know, lieve it was unfortunate, last year, or the DeWine resolution is, to strike this Congress denied women who are Congress voted to prohibit the Federal the committee language. I believe the civil servants from participating in employees health program from cover- health insurance plans which cover Senator from Ohio is exactly right. ing abortions for our female employees Abortion should not be a fringe benefit. abortion services. This overturned pre- and our female dependents. vious policy, which allowed these It should not be included as a standard If this committee amendment were women—like millions of women em- option. If Federal employees want to not adopted—in other words, if it were ployed in the private sector—access to purchase it, they certainly can. The rejected —we will be responsible for complete reproductive health care. cost is minimal. It is $250 or $300. continuing a lower standard of health Mr. President, major health insurers We should not include it as a stand- insurance for our female employees such as Blue Cross/Blue Shield provide ard fringe benefit and say, look, if the than they could get if they worked in this coverage for women in private sec- Federal Government does it, why the private sector. In the private sector tor jobs across the country. It is ap- should not all health care plans in you can get this. What this says is you proved of by a majority of the Amer- America? Not all health care plans do. cannot offer this service. A lot of health care plans do not. We Now, there is nothing that says these ican public. By denying the same op- should not have an item in our stand- programs have to include coverage for tions for Federal employees, we set a ard health care package for Federal abortion services. Not at all. Indeed, different standard for millions of employees that actually results in the before that amendment last year was women. Nine million Americans are destruction of an innocent human passed, out of the 345 health plans that covered by the Federal Health Benefits being. are all put under the Federal Employ- Program, and none of them should be I compliment my colleague from ees Health Benefits program, 345 of denied access to complete reproductive Ohio. I hope our colleagues will support them—about half; 178—offered some health care services. It sends the mes- that and remember how they voted last form of abortion coverage. In other sage that public servants do not have year when we had an extraordinary words, a woman could choose this if the same rights as private sector work- Saturday session and we adopted the she wanted; if she wanted a plan that ers, and that is wrong. present policy. The present policy did not cover it, fine, she could choose Civil servants are no different that being, again, that for Federal employ- that. But it seems to me terribly unfair any other American. They are regular ees, we will not include abortion as a for us to say, no, no, none of those pro- people: secretaries, engineers, mainte- standard fringe benefit unless it is nec- grams can offer this benefit to women nance workers, and caseworkers. Why essary to save the life of the mother or who might want to have it. Indeed, if should they be treated any differently in cases of rape and incest. they are in the private sector, they than other workers? They pay for their I thank my colleague. I yield the could get it. premiums and deductibles like every- floor. Now, some say this is a gift of the one else, and they should be allowed Mrs. BOXER. Mr. President, might I Federal Government to these women. the same options as other women in say that the more I listen to this de- No, it is a benefit. It is a benefit that this country. Civil servants are being bate the more I compliment my comes with the health package that asked to do tougher and tougher jobs friends, the Senator from Nebraska, our Federal Government offers. It is with the downsizing of our Federal gov- Senator KERREY, and the Senator from like saying that a woman could not use ernment—and are stepping up to the Maryland, Senator MIKULSKI, who ar- her private funds, her earnings, her sal- task. They should not be required to gued this eloquently in the commit- ary, her wages from the Federal Gov- make further sacrifices simply because tee—to treat Federal employees the ernment to obtain an abortion. Nobody they are an easy target for those in same way, the way more than 75 mil- is suggesting that, because the Con- Congress who would outlaw abortions lion American women are treated in stitution says the woman has a right to all together. the private work force. go out and buy this procedure—it is a Mr. President, we have all heard the We hear from the Senators from legal procedure, a medical procedure— stories of women who were forced into Oklahoma, Ohio and Indiana saying and the right is held up by the Su- very difficult situations as soon as this this has nothing to do with the right to preme Court. policy was enacted this year. We heard S10276 CONGRESSIONAL RECORD — SENATE September 11, 1996 about Susan Alexander who wanted to does not cover the service, which I un- medical care—and that’s 1.2 million have the child she was carrying, but derstand was almost half of all FEHBP American women who would be sum- found out gross fetal deformities made plans prior to last year’s prohibition. I marily stripped of their constitu- her child’s development ‘‘incompat- don’t believe, however, that it is appro- tionally guaranteed right to choose be- ible’’ with life, and threatened her life priate for us to preclude employees cause they or a family member work as well. Her doctors all recommended who want this coverage from choosing for the Federal Government. terminating her pregnancy for medical it. Federal employees should have no reasons. Unfortunately, she and her For this reason, I urge my colleagues fewer rights than any other American husband were shocked to find that her to support the committee amendment worker who earns a health care benefit insurance policy no longer covered and vote against tabling this proposal. as part of their compensation package. what turned out to be a very com- Ms. SNOWE. Mr. President, I rise in Some argue that the Federal Govern- plicated and expensive procedure, per- strong opposition to this effort to rein- ment has a right to dictate which med- formed to protect her life. state the ban on abortions in Federal ical services will be covered under the Mr. President, we know there are employee health benefits plans. It is FEHBP. They argue that Federal tax other women out there like Susan Al- yet another ripple in a steady stream dollars should not pay for abortions. exander who have been directly af- of attacks on women’s reproductive That’s what some would like this de- fected by the decision made in this rights and health. bate to be about—taxpayer funding for body last year. We know that to con- This debate is painfully familiar. One abortion. But that’s simply not the tinue this policy will have a serious year ago, the Senator from Oklahoma, case. In fact, that argument is a red and tangible impact on women’s Senator NICKLES, offered an amend- herring. health. Therefore, it is irresponsible to ment, which—regrettably—passed this Taxpayers would not fund abortions continue to deny women access to a body and changed the status-quo of covered by Federal health plans. Far full range of health care services be- health care for Federal employees and from it. The Federal Government, like cause Congress has turned the health their dependents in America. It rep- millions of private employers across care choices of women into a political resented a giant step backward for the the country, contributes a portion of football. rights and health of women who are its employee’s insurance premiums, Make no mistake about it, we are covered by the Federal Employees and the employee pays the rest. Thus, once again confronted with an attempt Health Benefits Plan [FEHBP]. It pro- FEHBP coverage is not pocket money to deny women the rights they now hibited the FEHBP from covering abor- for Federal employees. It is not an al- hold. Women have the legal right of tions—except when the woman’s life is lowance or a Federal handout. It is di- choice in this country, and the major- in danger or in cases of rape or incest. rect compensation earned by Federal ity in this country support that right. As the result of these restrictions, employees. And I would like to note This policy is micro-management of Federal employees and their depend- that CBO has determined that coverage the worst kind, and it is wrong. The ents enrolled in FEHBP’s who need of abortions—a legal medical proce- U.S. Congress should not be making re- abortions must pay for them out of dure—does not add to the cost of the productive health choices for Federal their own pocket, except in cases of premium. workers. Nor should it discriminate rape, incest, or to save the life of the This anti-choice restriction on Fed- against Federal workers who choose to mother. This may result in significant eral employees health benefits arbi- have an abortion. hardship to a woman and her family, trarily and unjustifiably reduces their By denying civil servants health cov- especially because many Federal em- total compensation package. The fact erage for abortion services, Congress ployees have incomes at or below the is, any service not covered by their does just that. It continues to force poverty level, which is $12,980 for a health insurance which they must pay Federal employees and their families family of three. for out-of-pocket amounts to a pay cut to purchase separate insurance to In fact, 25 percent of all Federal em- in their hard-earned wages. It is not for cover reproductive health services. It ployees earn less than $25,000—with Congress to determine how those hard- continues to add financial consider- nearly 18,000 Federal employees having earned wages should or should not be ations to a very time-sensitive, per- incomes below or just slightly above spent. Wages and benefits belong to the sonal decision. And, above all, it rein- the Federal poverty level. And while employees. forces the message to civil servants the average cost of an early abortion According to the Office of Personnel that the same rules do not apply to performed in a clinic is $250, the cost Management, which oversees the them. Their health is subject to the po- rises to $1,760 if performed on an out- FEHBP, between 1993 and 1995, 178 of litical winds of Congress. patient basis in a hospital. the 345 FEHB plans provided abortion Mr. President, this is not reasonable This means that some Federal em- coverage. Of the ‘‘Big Five’’ health to expect of people who are dedicated ployees may be forced to decide be- plans offered to Federal employees, to serving the public good. I commend tween paying for an abortion and buy- four of the five offered abortion cov- Senator BOXER for her vigilance and ing food for their children or paying erage. This range of options allows em- dedication on behalf of women every- rent. Others may be forced to carry ployees who object to abortions to where, and thank her for her leadership their unintended pregnancies to term. choose any one of the hundreds of Fed- in protecting the rights of civil serv- It is shameful that our Federal employ- eral health plans that would not cover ants. Once again, I urge my colleagues ees have such terrible options. the procedure. to reject this motion. Denying abortion coverage to Fed- Today, 78 million women in America Mr. ROBB. Mr. President, I rise eral employees may also endanger a have abortion coverage in the private today to support the committee woman’s health. Restrictions that sector. Two-thirds of private fee-for- amendment which would strike House delay an abortion make it more likely service plans provide the full range of provisions prohibiting the Federal Em- that a woman will continue a poten- reproductive health services, including ployee Health Benefits Program from tially health-threatening pregnancy to abortions. And 70 percent of health providing coverage for abortion serv- term, or undergo abortion procedures maintenance organizations [HMO’s] ices. later in a pregnancy when they are far provide abortion coverage. The vast majority of private health more risky to a woman’s health. Finally, a majority of people in plans provide coverage for abortion Just because we have the power of America believe that abortion should services. The House bill is telling Fed- the purse in Congress does not mean we be safe, legal and rare. These Ameri- eral employees that, because of who should have the power to penalize cans do not distinguish between women their employer is, they shouldn’t have women in public service by denying who work in the private sector and the ability to choose a health plan them their reproductive freedoms or women who work for the Federal Gov- which covers this legal medical proce- threatening their health. ernment. dure. There are currently 1.2 million A person’s ability to exercise a con- An employee who opposes abortions women of reproductive age who rely on stitutional right should not be deter- can choose a health care plan which their Federal health plan for their mined by an employer—even when the September 11, 1996 CONGRESSIONAL RECORD — SENATE S10277 employer is the Federal Government. vate sector where approximately two- what it is we are voting on. This is not, What we can and must do today is en- thirds of private fee-for-service plans despite what has been said, this is not sure that we do not maintain the exist- and 70 percent of health maintenance an issue over whether or not a woman ing two-tiered system of rights for our organizations provide abortion cov- has the right to choose to have an citizens—one for women who work for erage. abortion. We do not change any con- or are insured by the Federal Govern- Despite these facts, last year Con- stitutional rulings. We do not change ment, and another for those women gress stripped Federal employees of anything in that regard. who work in the private sector. We this right. This year, some Members This is simply an issue as to whether must not allow such discrimination to are again attempting to restrict wom- the taxpayer will be forced to pay for continue. And we must stop sending a en’s access to reproductive health serv- an abortion of a Federal employee’s de- signal to our Federal employees and ices. Mr. President, this is not right. It mand for an abortion. Mr. President, 70 their female dependents that we do not is a troublesome manifestation of the percent or more of the citizens of the value their health or their reproductive Congress’ well-known plantation men- United States, whether they are pro- rights. I urge my colleagues to join me tality. life, pro-choice, or neutral on the ques- in voting to oppose this motion to Mr. President, this amendment is un- tion, have consistently stated in polls table the committee amendment. justly restrictive and discriminatory. and surveys that, regardless of their Mr. KERRY. Mr. President, today Passage of this amendment assigns an position, more than 70 percent have once again the radical right has come inferior status to women working in said no in an issue that is this con- to this Senate floor to impose their the Federal Government. It is time to troversial, which violates the con- will against the wishes of a vast major- stop these attempts to chip away at a science and religious beliefs of many ity of Americans. They have come woman’s legal right to choose. I urge people, or that is simply a taxpayer forth again to add an amendment to my colleagues to vote against this issue. We do not believe the taxpayer the Treasury, Postal Service, and gen- amendment. should be forced to pay for the abortion eral Government appropriations bill Mr. DEWINE. Mr. President, would of someone else. that would limit reproductive health the Chair advise Members how much This goes one step further because it services for 1.2 million female Federal time remains? limits it to just Federal employees. employees. The PRESIDING OFFICER. The Sen- The Senator from Ohio wants to retain The Treasury-postal bill provides the ator from Ohio has 8 minutes and 18 the policy that has effectively been in funding for the Federal Employees seconds under his control, and Senator practice, totally, almost consistently Health Benefits Program [FEHBP], our BOXER has 4 minutes under her control. for more than 20 years, consistently network of insurance plans that cover Mr. DEWINE. Mr. President, let me supported by both Democrats and Re- approximately 9 million Federal em- yield myself such time as I may publicans, whether Democrats have ployees and their dependents. Today, consume. been in control of the Congress or there are approximately 1.2 million The PRESIDING OFFICER. The Sen- whether Republicans have been in con- women of reproductive age who rely on ator is recognized. trol of the Congress. the FEHBP for their medical care. Mr. DEWINE. Mr. President, we are So I hope my colleagues will vote to Mr. President, in the United States concluding this debate and we will maintain the current law—the current we have a Constitution that guarantees shortly be voting on my motion to law being that we will not force tax- an extensive list of freedoms upon table the amendment. payers to pay for the abortions of Fed- which the Government cannot infringe. Again, I think it is important that eral employees. And we do allow excep- Perhaps the sponsors of this amend- we keep our eye focused on the ball. We tions to that rule: If the life of the ment do not understand the issue at can come down here in the well of the mother is in jeopardy or in cases of hand. The Supreme Court ruled in Roe Senate and discuss for hours the issue rape or incest. versus Wade that abortions are con- of abortion. That is not what this de- I think that is a reasonable policy, stitutional. It is completely legal for a bate really is about. What this debate and it has been consistently supported. woman who wants to have an abortion is about is a very narrow issue, a very I hope we retain that law. to obtain the services of a doctor who narrow question, which is simply this: Mr. DEWINE. Mr. President, I reserve is willing to provide an abortion. Con- Should this body go against the will of the balance of my time. The PRESIDING OFFICER. Who gress should not have the ability to de- the American people? The vast major- ity of the American people, even those yields time? cree to a woman that she cannot ob- Mrs. BOXER. Mr. President, I have 4 who really have mixed feelings on the tain an insurance policy that covers minutes left, is that correct? abortion, which is a fully legal proce- abortion issue, the vast majority of the The PRESIDING OFFICER. Yes. dure. This is not the role of Congress. American people say, no, I do not want Mrs. BOXER. And the other side has We have no right to impose ourselves my tax dollars being used for abortion. how much? and our sense of morality in this way That is what this is because 74 percent The PRESIDING OFFICER. They upon the women who work for the Fed- of the premium of the Federal em- have 4 minutes 23 seconds. eral Government. ployee is paid for by taxpayers; roughly Mrs. BOXER. I will yield the remain- Failing to make abortion illegal, three-fourths of the premium is paid der of the time to Senator KERREY, antichoice Members of Congress are for by taxpayers. who has really worked hard in the com- trying to make this right more dif- This is a horribly contentious issue, mittee to do the right thing, to give ficult to exercise. Singling out abor- an issue that divides families. It is an Federal employees equal treatment tion for exclusion from health care issue that friends do not want to talk with the 75 million other women that plans that cover other reproductive about. It is an issue, quite frankly, have that choice in the private sector. health care is harmful to women’s that the Federal taxpayers have said The PRESIDING OFFICER. The Sen- health and discriminates against time and time again that they do not ator from Nebraska is recognized. women in public service. want to be involved in, they do not Mr. KERREY. Mr. President, first of In 1993 and 1994, Congress voted to want to fund. all, all Members have made up their permit Federal employees, like work- We are not debating a woman’s right minds on this issue. So it is not a ques- ers in the private sector, to choose a to choose today. We are not debating tion of trying to persuade anybody one health care plan that covered a full that. We are not debating what a per- way or the other. It is trying to say to range of reproductive health services, son can do. We are simply debating the American people, those of us who including abortion. It is my belief that whether taxpayers are going to pay for intend to vote for allowing Federal em- health insurance is part of an employ- this very, very, controversial proce- ployee health programs—as in this bill, ees’ earned compensation. As is com- dure. That is what we really are talk- their insurance money—to be used to mon in private industry, costs for in- ing about. pay for reproductive services, including surance coverage for Federal employ- I yield to my colleague from Indiana. legal abortions. ees are shared by the employer and the Mr. COATS. Mr. President, just to I have a great deal of respect for the employee. This is similar to the pri- summarize so Members know exactly Senator from Ohio, the Senator from S10278 CONGRESSIONAL RECORD — SENATE September 11, 1996 Indiana, the occupant of the chair, and So I hope the citizens that are listen- There is a sufficient second. others who hold a different view. But ing to this argument will understand The yeas and nays were ordered. when they come and say this is about that this is really not about using tax- The PRESIDING OFFICER. The using taxpayer money to pay for abor- payer money. You would have to re- question is on agreeing to the motion tions, really, the only way you can pre- strict the use of salaries in order to ac- to table. The yeas and nays have been vent taxpayer money from being used complish that objective. ordered. for abortions by Federal employees The PRESIDING OFFICER. The time The clerk will call the roll. would be to actually come in and pro- of the Senator has expired. All time of The legislative clerk called the roll. hibit their salaries to be used in any Senator BOXER has expired. Mr. NICKLES. I announce that the way at all for abortion, because their Who yields time? Senator from Delaware [Mr. ROTH] is salaries are paid for with taxpayer Mr. DEWINE. Mr. President, how necessarily absent. money. much time do I have? Mr. FORD. I announce that the Sen- The PRESIDING OFFICER. The Sen- If my salary is paid for with taxpayer ator from Arkansas [Mr. PRYOR] is ab- money, if I am already provided a sub- ator has 4 minutes 22 seconds. sent due to family illness. Mr. DEWINE. I yield myself the bal- sidy in my salary, what good does it do The PRESIDING OFFICER. Are there ance of that time. In just a moment— to say that they can’t have health in- any other Senators in the Chamber de- 4 minutes, roughly—I will make a mo- surance programs do it? We have two- siring to vote? tion to table this amendment. Let me, thirds of the health insurance pro- The result was announced—yeas 53, again, walk the Members through the grams in the United States and 70 per- nays 45, as follows: cent of the HMO’s in the United States procedure of exactly where we are. already providing reproductive serv- The DeWine-Nickles motion to table [Rollcall Vote No. 284 Leg.] ices, as well as legal abortions. will result in the following. This is YEAS—53 You are not really preventing tax- what it means. First, that the status Abraham Faircloth Lott payer money from being used, not at quo will remain. The law—as pre- Ashcroft Ford Lugar Bennett Frahm Mack all. If their salary is used to pay for viously passed by this Congress, by this Biden Frist McCain abortion, that is taxpayer money. Senate, by the House, and signed into Bond Gorton McConnell What you are doing is—you think that law by President Clinton—will remain Breaux Gramm Murkowski is what you are accomplishing, but you the same. This vote, a vote to table, is Brown Grams Nickles Burns Grassley Nunn are not. What you are doing, in fact, is consistent with what the Senate did a Coats Gregg Pressler changing the rules and saying to little over a year ago, by a vote of 50 to Cochran Hatch Reid women who are Federal employees that 44. Conrad Hatfield Santorum you are going to be treated differently Again, Mr. President, we need to Coverdell Heflin Shelby Craig Helms Smith than 70 percent of the other employees focus on the narrow issue before us. It D’Amato Hutchison Thomas that are out in the work force. is so easy for us—because we all have DeWine Inhofe Thompson There are 9 million Federal employ- strong feelings about the issue—to get Domenici Johnston Thurmond ees, approximately 1.2 million women Dorgan Kempthorne Warner engaged in a debate about a woman’s Exon Kyl of reproductive age, who rely on the right to choose, pro-life issues, and Federal Employee Health Benefits pro- even engaged in a debate about all NAYS—45 gram for medical coverage. Until No- kinds of different things connected Akaka Glenn Mikulski vember 19, 1995, Federal employees— Baucus Graham Moseley-Braun with the abortion issue. That’s not Bingaman Harkin Moynihan like workers in the private sector— what we are here today to debate. Boxer Hollings Murray were permitted to choose a health care We are here to debate a very narrow Bradley Inouye Pell plan that covered a full range of repro- question: Should current law prevail, Bryan Jeffords Robb Bumpers Kassebaum Rockefeller ductive health benefit services. So I which restricts from Federal coverage, Byrd Kennedy Sarbanes say to citizens out there, who say, health insurance coverage of Federal Campbell Kerrey Simon ‘‘gee, I think we ought to restrict use employees, one procedure—the abor- Chafee Kerry Simpson of the Federal Employee Health Bene- tion procedure—and allows it only in Cohen Kohl Snowe Daschle Lautenberg Specter fits Program for something that I don’t the case of rape, incest, or to save the Dodd Leahy Stevens want to pay for,’’ that is not what you life of the mother? That is the issue. Feingold Levin Wellstone get done. All you are saying is they The issue is fundamentally, with all Feinstein Lieberman Wyden can’t use health care benefits; you are due respect to my colleague from Ne- NOT VOTING—2 not saying they can’t use salary, which braska, whether or not taxpayers are Pryor Roth is taxpayer money as well. going to subsidize this at the rate of 74 So the motion to lay on the table the In 1993 and 1994, Congress voted to percent. That is really what the issue committee amendment beginning on permit Federal employees to choose is all about. the health care plan that covered abor- The vast majority of the American page 80, line 20 through page 81, line 4 tion. And from 1983 until that time, people, time and time and time again, was agreed to. Congress prohibited the Federal Em- have said ‘‘no.’’ The country is very di- Mr. NICKLES. Mr. President, I move ployee Health Benefits Program from vided on the abortion issue, but it is to reconsider the vote. covering abortion services, except in overwhelmingly against using Federal Mr. COATS. I move to lay that mo- cases where the woman’s life was in tax dollars for abortions. tion on the table. danger. Again, the motion to table will sim- The motion to lay on the table was Mr. President, one of the problems ply preserve the status quo, will reaf- agreed to. here—especially for lower income Fed- firm what the Senate did a year ago. Mr. FORD. Mr. President, I make a eral employees, of whom we have a Frankly, it is consistent with what the point of order the Senate is not in considerable number—is if you exam- law was from 1984 to 1993. It was only order. ine what the American Medical Asso- changed when President Clinton took The PRESIDING OFFICER. The Sen- ciation has said in this case. They have office, for 2 years, and that law then ator is correct. The Senate will come indicated, and they say it with evi- was changed. So really going back to to order. dence to back up the claim, that re- 1984, until the current time, this mo- The question recurs on the second strictions such as this—that deter and tion to table is consistent with what committee amendment to which is delay women from making a legal the law has been during that period of pending amendment No. 5235, offered choice—make it more likely that time, with the exception of 2 years. by Mrs. KASSEBAUM, the Senator from women will continue a potential Mr. President, I yield back the bal- Kansas. health-threatening pregnancy to term ance of my time. Mr. KERREY addressed the Chair. or undergo abortion procedures that I move to table the amendment and The PRESIDING OFFICER. The Sen- would endanger their health. That is ask for the yeas and nays. ator from Nebraska. what the medical community has said The PRESIDING OFFICER. Is there a Mr. KERREY. Mr. President, I ask that has examined this. sufficient second? unanimous consent the Senator from September 11, 1996 CONGRESSIONAL RECORD — SENATE S10279 Arizona be permitted to speak for 5 north.’’ And while administration offi- the process of doing right now, I want minutes as in morning business, and cials at first suggested that our strikes to pause for just a moment, if I might, the Senator from Nebraska for 5 min- in southern Iraq would affect Iraq’s ac- to bring to my colleagues attention utes immediately thereafter. tion in the north, they now emphasize that yesterday, history was made at The PRESIDING OFFICER. Without that the strikes were intended only to the U.N. General Assembly. After near- objection, it is so ordered. The Senator serve our strategic interest in restrict- ly 3 years of intense negotiations at from Arizona is recognized for 5 min- ing Saddam’s ability to threaten his the 61. Nation Conference on Disar- utes. neighbors from the south. mament, the world community reached Mr. GRAMM. Could we have order, It is clear now that the erosion of co- an agreement on a treaty to ban nu- Mr. President. alition unity, evident in Turkey and clear weapons testing. This Com- The PRESIDING OFFICER. The Sen- Saudi Arabia’s refusal to allow United prehensive Test Ban Treaty, strongly ate will come to order so the Senator States warplanes to undertake offen- supported by all five declared nuclear from Arizona can be heard. sive operations from bases in those states, was overwhelmingly adopted by The Senator from Arizona. countries, had a far more important in- the U.N. General Assembly on a vote of f fluence on our choice of targets and the 158 to 3 with 5 abstentions, clearing the level of force used than administration way for world’s nations—actual and po- UNITED STATES MILITARY ACTION officials have admitted. tential nuclear states alike—to sign AGAINST IRAQ Most importantly, the President’s the agreement later this month. Mr. MCCAIN. Mr. President, this claims that our strikes were successful After over 40 years of nuclear weap- morning we learned that Iraq fired a in achieving their objectives are belied ons testing and more than 2,000 detona- surface-to-air missile at American F– by the events of this week. By what tions, this valuable tool in stemming 16’s patrolling the no-fly zone over measurement can we assert that Sad- nuclear weapons proliferation is finally what has now become an imaginary dam has been persuaded to treat his within reach. In order for the treaty to Kurdish safe haven in northern Iraq. people humanely; that he has been enter into force, each of the world’s 44 This latest challenge to the safety of compelled to abide by U.N. resolutions nations identified as possessing nuclear American pilots and to the credibility and the terms of the cease-fire agree- weapons or the research capability nec- of American security guarantees in the ment; that the containment of Iraq has essary to develop them must sign the Persian Gulf region comes on the heels been further advanced; and that the comprehensive test ban agreement. As of Saddam Hussein’s rejection of Unit- United States and our allies are strate- my colleagues are aware, India has led ed States warnings not to repair his air gically better off since we fired 44 a high-profile campaign to prevent this defense systems damaged by our cruise cruise missiles at Iraqi air defense sys- from happening and frustrate the will missile strikes in southern Iraq. tems in the south? of the world community to close the The necessity of further United Since those strikes, Saddam’s Kurd- nuclear weapons Pandora’s box. This States military action against Iraq is ish allies have achieved a complete vic- temporary setback should not dimin- now obvious. And by his actions, Sad- tory in the north, and Saddam has re- ish, however, the significance of yester- gained control of an area from which dam Hussein has made the strongest day’s truly historic vote. I am con- he has been excluded for several years. argument for a disproportionate U.S. fident that India will see the wisdom of Kurdish refugees are again flooding response of considerably greater mili- halting the spread of nuclear weapons across the border. Saddam, in utter tary significance than our military ac- and sign the Comprehensive Test Ban contempt for U.S. warnings, has begun tion last week. Treaty before too long. In the mean- repairing the radar sites we struck last Furthermore, Saddam’s aggressive time, mankind can celebrate the fact week. He, at least temporarily, split challenges to the United States, and that for the first time in history, the the Desert Storm coalition. And in vio- his success in reasserting his control in world’s superpowers have agreed to end lation of the cease-fire agreement and northern Iraq as his troops and the the testing of nuclear weapons forever. U.N. Security Council resolutions, he troops of his new Kurdish allies, the Many of our allies played critical has fired missiles at U.S. planes patrol- KDP, completed their conquest of the roles over the past 3 years in making ling an internationally established no- region on Monday, reveal the critical passage of the Comprehensive Test Ban fly zone. As successes go, this one importance of curbing the Clinton ad- Treaty a reality. But I wish to take ministration’s tendencies to rhetorical leaves much to be desired. Clearly, Iraq’s attempted downing of this opportunity to praise President inconsistency in defining its objec- American planes requires a military Bill Clinton for his leadership on the tives, disingenuous explanations of its response from us. I have little doubt issue of the Test Ban Treaty and nu- policy choices, and exaggerated claims that the President will order a re- clear weapons proliferation. The Unit- of success. sponse. Given that Iraq’s action rep- ed States has been a world leader in Our strikes last week were in re- resents a challenge not just to the halting the spread of nuclear weapons sponse to Iraq’s conquest, in alliance United States, but to the international technology during the tenure of the with the KDP, of the Kurdish city of coalition responsible for enforcing the Clinton administration. The earlier ex- Irbil. But by striking targets in the no-fly zone, I would expect that we will tension of the Nuclear Non-Prolifera- south, the administration chose not a have greater cooperation from our al- tion Treaty and now the completion of disproportionate response to Iraqi ag- lies than we experienced last week. the Comprehensive Test Ban Treaty gression, but a minimal response that Thus our ability to take the dispropor- are important milestones in the his- was disconnected from the offense it tionate, truly punishing action which tory of arms control, and the President was ostensibly intended to punish. As is clearly called for under the cir- deserves a great deal of credit in mak- one administration official put it: cumstances should not be limited by ing it happen. ‘‘* * * We know that we did the right the consequences of our failure to In addition to lauding President Clin- thing in terms of stopping Saddam maintain coalition unity. ton’s dedication to this important as- Hussein in whatever thoughts he might Decisions about the dimensions of pect of our national security, I wish to about moving south and in letting him our response are, of course, the Presi- praise the efforts of Secretary of State know that when he abuses his people or dent’s to make. I pray that he will Warren Christopher, Arms Control and threatens the region, that we will be choose wisely. Disarmament Agency head John there. * * * we really whacked him.’’ The PRESIDING OFFICER. The Sen- Holum, and U.S. negotiator to the con- Evident in that statement are the ator from Nebraska is recognized for 5 ference on disarmament Stephen three harmful administration ten- minutes. Ledogar. dencies cited above. Our stated purpose f I wish also to single out the tireless to stop Saddam’s abuse of his people dedication of Senator MARK HATFIELD was quickly overridden by, in the THE COMPREHENSIVE TEST BAN to the cause of a verifiable Comprehen- words of another administration offi- TREATY sive Test Ban Treaty. As my colleagues cial, the judgment that ‘‘we should not Mr. EXON. Although there are many know, Senator HATFIELD will be leav- be involved in the civil war in the important things the U.S. Senate is in ing the U.S. Senate at the conclusion S10280 CONGRESSIONAL RECORD — SENATE September 11, 1996 of this session, ending 30 years of dis- propriations Committee, subcommittee buildings should be the highest prior- tinguished service to his country. I can Chairman SHELBY and Senator KERREY ity. think of no more fitting way to high- for their efforts in including funding That is the intention of this amend- light the last few months of his career for security requirements in both the ment. I am pleased to learn from the than yesterday’s treaty approval. Four new construction and repair and alter- distinguished manager, the Senator years ago, I joined him and former ma- ations categories for the Federal build- from Nebraska, it appears it is accept- jority leader George Mitchell in au- ings program of the General Services able. And Senator SHELBY has, like- thoring a law phasing out American Administration in the fiscal year 1997 wise, indicated that. nuclear weapons testing and jump- Treasury, postal appropriations bill. Mr. KERREY addressed the Chair. starting international negotiations de- The current security environment is The PRESIDING OFFICER. The Sen- signed to achieve a permanent test uncertain and variable. Unforeseen cir- ator from Nebraska. ban. It is, therefore, with a great deal cumstances, and events can radically Mr. KERREY. Mr. President, both of pride that I herald the action of the change the requirements for security Senator SHELBY and I have looked at General Assembly and look forward to expenditures in real time and at a mo- this amendment. We agree it is a good the treaty signing ceremony later this ment’s notice as witnessed by recent amendment. We appreciate the Senator month. I remind the Senate, with Sen- tragic events in our Nation. from Virginia bringing it to our atten- ator Mitchell gone and Senator HAT- Current language in the Senate ap- tion, and we are willing to accept it. FIELD and myself leaving come Janu- propriations bill requires compliance Mr. WARNER. Mr. President, I urge ary, the continued leadership in this with formal reprogramming processes its adoption. area falls to Senator LEVIN and others in order to use funds for security pur- The PRESIDING OFFICER. Without to take up the challenge. poses. While this requirement is an ap- objection, the amendment is agreed to. Mr. President, I thank the Senate propriate check on security expendi- The amendment (No. 5240) was agreed and I yield the floor. tures, and I commend my colleagues to. The PRESIDING OFFICER. The time for their swift action in this area in the Mr. WARNER. Thank you, Mr. Presi- of the Senator has expired. Who seeks past, I remain concerned that during a dent. recognition? congressional recess, a delay in the im- I move to reconsider the vote. Mr. THOMAS addressed the Chair. plementation of reprogramming meas- Mr. KERREY. I move to lay that mo- The PRESIDING OFFICER. The Sen- ures for security could impede actions tion on the table. ator from Wyoming is recognized. necessary for the immediate protection The motion to lay on the table was Mr. THOMAS. I suggest the absence of our Federal work force. agreed to. of a quorum. My amendment would allow GSA to Mr. KERRY. Mr. President, I suggest The PRESIDING OFFICER. The use any funds previously appropriated the absence of a quorum. clerk will call the roll. for repairs and alterations and building The PRESIDING OFFICER. The The bill clerk proceeded to call the operations and rental space to meet clerk will call the roll. roll. minimum standards for security upon The bill clerk proceeded to call the Mr. KERREY. Mr. President, I ask notification of the Appropriations roll. unanimous consent that the order for Committee of the House and Senate Mr. LOTT. Mr. President, I ask unan- the quorum call be rescinded. that such a determination had been imous consent that the order for the The PRESIDING OFFICER. Without made. quorum call be rescinded. objection, it is so ordered. I would also request that should my The PRESIDING OFFICER. Without f amendment be agreed to, clarifying re- objection, it is so ordered. port language be added stating the fol- UNANIMOUS-CONSENT AGREEMENT TREASURY, POSTAL SERVICE, AND lowing: Mr. LOTT. Mr. President, I ask unan- GENERAL GOVERNMENT APPRO- The Committee has included requested imous consent that the pending com- PRIATIONS ACT, 1997 funding for security as a line item in both mittee amendment, and the Kassebaum The Senate continued with the con- New Construction and Repairs and Alter- amendment thereto, be laid aside in sideration of the bill ations in addition to amounts requested in status quo. In explanation of that Mr. KERREY. Mr. President, I ask Basic Repairs. A provision authorizing the unanimous consent request, Senator use of other repair funds has also been in- unanimous consent that the pending cluded to ensure that the GSA can respond KASSEBAUM is, I believe, in a meeting amendment be laid aside just for the quickly to safety and security requirements having to do with the FDA reform. consideration of an amendment offered as they are identified. Safety and security There has been a lot of discussion back by the distinguished Senator from Vir- concerns are to be addressed as a top priority and forth about how to handle these ginia, Senator WARNER. in using capital funds provided in the bill. two amendments. The Senator from The PRESIDING OFFICER. Is there As the chairman of the Subcommit- Oregon is here and is continuing to objection? Without objection, it is so tee on Transportation and Infrastruc- pursue his desire in this effort. He has ordered. ture, with oversight responsibility over been willing to have these set aside for AMENDMENT NO. 5240 the General Services Administration, I now so we can take up other issues, and Mr. WARNER. Mr. President, I thank have been pleased with GSA’s actions amendments can perhaps be agreed to, the distinguished managers of the bill, to date in meeting an enhanced level of and perhaps other amendments can be and I thank my two colleagues who, for security at GSA controlled buildings debated and voted on, if necessary. We various reasons, at this point in time and facilities. I would like to commend will continue to work to see how we have an interest in the floor procedure the Appropriations Committee for ac- can resolve that. I make that unani- and have permitted me, as a matter of tions taken following the Oklahoma mous consent request. Senatorial courtesy, to proceed with City bombing in the fiscal year 1995 Mr. WYDEN. Reserving the right to the following amendment which I send legislation, continuing reprogramming object, and I do not intend to object, I to the desk and ask for its immediate efforts approved by both the author- just want it understood that I have consideration. izers and appropriators in fiscal year spent the last couple of hours trying to The PRESIDING OFFICER. The 1996, and now in the Treasury, postal work, in a bipartisan way, to address clerk will report. appropriations bill that we have before this, to address the budgetary con- The bill clerk read as follows: us for fiscal year 1997. cerns. I want the majority leader, Sen- I think that all of my colleagues The Senator from Virginia [Mr. WARNER] ator LOTT, to understand that I have proposes an amendment numbered 5240. On would agree that in light of the new no interest in prolonging this. I do page 53, beginning on line 23, strike ‘‘and in threatening environment we are under, want to protect the rights of these vul- compliance with the reprogramming guide- resulting from incidents of domestic nerable patients and get that done lines of the appropriate Committee of the terrorism like the Oklahoma City today. But I have no desire to prolong House and Senate.’’ bombing, providing a safe and secure this. Mr. WARNER. Mr. President, first of environment for our Federal work Mr. President, we are going to con- all, I would like to commend the Ap- forces and visitors to our Federal tinue, as the majority leader requested, September 11, 1996 CONGRESSIONAL RECORD — SENATE S10281 to work to try to fashion something The amendment is so modified. This new policy gives agencies until that is acceptable. We thought we had The amendment (No. 5224), as modi- October 1, 1997, to go out and recruit something a minute ago, but, appar- fied, is as follows: business from other agencies, without ently, we have some more work to do. At the end of title VI add the following: performing any cost analysis. With that, I withdraw my reserva- SEC. 646. (a) Except as provided in sub- The administration implicitly argues tion. I appreciate the majority leader section (b), none of the funds appropriated by that this entrepreneurial approach to this or any other Act may be used by the Of- Government will save the taxpayers trying to help us by setting that aside. fice of Management and Budget, or any other Mr. LOTT. Mr. President, was that agency, to publish, promulgate, or enforce money—and they don’t even know request agreed to? any policy, regulation, or circular, or any what the cost comparisons are. Some The PRESIDING OFFICER. I thought rule or authority in any other form, that examples of existing ISSAs are: Aerial the Senator from Alabama was rising would permit any Federal agency to provide photography, mapping services, labora- to speak on the request. a commercially available property or service tory services, printing services. Other Is there objection to the request? to any other department or agency of gov- specific examples are: A U.S. Geologi- Without objection, it is so ordered. ernment unless the policy, regulation, cir- cal Survey was hired by the Bureau of Mr. THOMAS. Mr. President, I ask cular, or other rule or authority meets the Reclamation to participate in the High requirements prescribed under subsection unanimous consent that the pending (b). Plains Groundwater Recharge Pro- amendment be laid aside. (b)(1) Not later than 120 days after the date gram. The project took twice as long The PRESIDING OFFICER. That has of the enactment of this Act, the Director of and cost three times as much as the been done. the Office of Management and Budget shall private sector standard. AMENDMENT NO. 5224 prescribe regulations applicable to any pol- In Jacksonville, FL, the Navy Public icy regulation, circular, or other rule or au- (Purpose: To limit the use of funds to pro- Works Division recently completed a thority referred to in subsection (a). vide for Federal agencies to furnish com- state-of-the-art environmental lab to (2) The requirements prescribed under mercially available property or services to provide routine hazardous waste char- paragraph (1) shall include the following: other Federal agencies) (A) A requirement for a comparison be- acterization. These services are al- Mr. THOMAS. Mr. President, I send tween the cost of providing the property or ready available from the private sec- an amendment to the desk and ask for service concerned through the agency con- tor, and the Navy intends to offer these its immediate consideration. cerned and the cost of providing such prop- services now to other Government The PRESIDING OFFICER. The erty or service through the private sector. agencies. clerk will report. (B) A requirement for cost and perform- Mr. President, this is not the concept The assistant legislative clerk read ance benchmarks relating to the property or that most of us have for Government. as follows: service provided relative to comparable serv- It is common sense, I think, that ac- ices provided by other government agencies The Senator from Wyoming [Mr. THOMAS] and contractors in order to permit effective tivities that are integral to Govern- proposes an amendment numbered 5224. oversight of the cost and provision of such ment, activities for emergencies, for Mr. THOMAS. Mr. President, I ask property or service by the agency concerned defense, activities such as plane wrecks unanimous consent that reading of the or the Office of Management and Budget. and all these things, those things, of amendment be dispensed with. (C) The regulation would not apply to con- course, are excluded under the bill. But The PRESIDING OFFICER. Without tingency operations associated with a na- when we are talking about routine tional emergency. objection, it is so ordered. services that can be provided commer- The amendment is as follows: Mr. THOMAS. Mr. President, I want cially in the private sector, then they to explain the amendment, if I may, At the end of title VI add the following: should be. SEC. 646. (a) Except as provided in sub- and then ask that we have a vote on it. There are a few examples of direct section (b), none of the funds appropriated by It has to do with the Federal Govern- Government competition with the pri- this or any other Act may be used by the Of- ment’s policy of more than 40 years vate sector. So there is a new policy fice of Management and Budget, or any other that the Government should not com- that encourages the Federal Govern- agency, to publish, promulgate, or enforce pete with the private sector in areas in ment to compete with the private sec- any policy, regulation, or circular, or any which the private sector can legiti- tor. I think that is philosophically rule or authority in any other form, that mately function. In fact, the Govern- wrong. Certainly, it hurts small busi- would permit any Federal agency to provide ment should rely on the private sector a commercially available property or service ness. There isn’t even competition for to any other department or agency of gov- to supply commercially available goods projects —no public solicitation—the ernment unless the policy, regulation, cir- and services. private sector never knows if there is a cular, or other rule or authority meets the However, this policy is too often ig- need that they could fulfill. requirements prescribed under subsection nored. For example, the Defense We did this, by the way, in the Wyo- (b). Science Board calculates that out of ming legislature when I was there. We (b)(1) Not later than 120 days after the date 850,000 full-time positions needed to had a bill that said that in those areas of the enactment of this Act, the Director of provide commercial services for the where the function can be commer- the Office of Management and Budget shall military, 640,000 are held by Federal cially carried out, there ought not to prescribe regulations applicable to any pol- icy regulation, circular, or other rule or au- employees rather than private sector be competition by the Government, thority referred to in subsection (a). personnel. that there ought to be at least an anal- (2) The requirements prescribed under I want to go back and talk about ysis of the cost, and a fair analysis, so paragraph (1) shall include the following: commercial services, however, because these things can be done, to the extent (A) A requirement for a comparison be- the modification that I sent to the that it is possible, to save the tax- tween the cost of providing the property or desk exempts emergencies and exempts payers money and do it in the private service concerned through the agency con- factors that are not routinely commer- sector. Numerous studies have shown cerned and the cost of providing such prop- cial completely from the bill. There is that outsourcing can save the Govern- erty or service through the private sector. (B) A requirement for cost and perform- a new administration policy that ment $9 billion to $10 billion annually. ance benchmarks relating to the property or prompts this particular amendment. Further, it seems to me that this service provided relative to comparable serv- OMB has come out with a policy that process of having extra commercial ac- ices provided by other government agencies grandfathers existing Interservice Sup- tivities carried on by Government and contractors in order to permit effective port Agreements from cost-comparison agencies circumvents the appropria- oversight of the cost and provision of such requirements. In other words, it says if tions process. If an agency is able to do property or service by the agency concerned you have had this kind of Interservice the work for another agency, it is like- or the Office of Management and Budget. Support Agreement, it is not even nec- ly to have more resources and employ- AMENDMENT NO. 5224, AS MODIFIED essary to inquire as to what the cost ees than it really needs to fulfill its Mr. THOMAS. Mr. President, I send a would be if, indeed, there would be sav- primary mission. It may be wasting modification of the amendment to the ings in the private sector. taxpayers’ resources and may need to desk. The Interservice Support Agreements be cut back. If an agency appropria- The PRESIDING OFFICER. The Sen- permit one Federal agency to provide tions is cut and it recruits business, it ator has that right. goods or services to another agency. is circumventing the appropriations S10282 CONGRESSIONAL RECORD — SENATE September 11, 1996 process. The amendment that we have ings. But this is a smaller issue. While colleague from Wyoming, Senator simply indicates that none of the dol- I am delighted that Senator STEVENS THOMAS. The amendment would require lars in this particular appropriations will be holding hearings on the broader cost comparisons and cost and perform- can be used unless, and the rule says: bill, there is really no reason for small ance benchmarks before any Federal A requirement for a comparison between businesses to be caught under this agency can provide any other Federal the cost of providing the property or service Clinton administration ISSA policy, agency with property or services. concerned through the agency concerned and the Interservice Support Agreement I am a very strong supporter of in- the cost of providing such property or serv- policy. The amendment is very simple. creasing the efficiency of Government. ice through the private sector. It merely reaffirms existing law. It Much of my effort over the last few It is very simple. It simply says that would prohibit the appropriation of years has been devoted to exactly you have to take a look at letting the funds of one agency to provide com- that—passing the Chief Financial Offi- private sector do this and get the cost mercially available goods and services cer Act, expanding inspectors general, of that before one agency provides it to for another agency unless the cost and with the new procurement legisla- the Government sector for another comparison is done and more oversight tion we passed that was the work of agency. is conducted on the agreement to pro- not only the White House in the last I emphasize that we have been doing vide more information about what we administration but this administration it for 40 years. This is a new OMB pol- are doing. The amendment will create and our Governmental Affairs Commit- icy. It is a rule for the supplemental private-sector jobs, which is what we tee, as well as people in the Pentagon. handbook. By the way, as to the hand- talk about all the time on both sides of So we have a track record of working book itself, I think we are going to the aisle. It will help small businesses. in these areas of increasing the effi- hear—and we have heard from one It will save taxpayer dollars and make ciency of Government and along with agency, the Defense Department spe- Government smaller and more effi- it of having a greater reliance on the cifically—‘‘Well, we will be curtailed cient. private sector which we have provided on a number of these essential support Mr. President, the bottom line is we in some of the new procurement legis- emergency activities.’’ want Government to cost less. This is a lation for providing goods and services Let me give you the modification way to do that. to the Government. first of all. It makes it clear that the So I urge my colleagues to support In spite of that, I have difficulty sup- amendment does not apply to national this amendment. It is a commonsense porting this amendment. Its impact, I security. Furthermore, this OMB rule amendment, a good-government do not think, has been completely re- has an exemption. Nothing in this amendment, and a pro taxpayer reform viewed and I think it is unnecessary amendment would change advanced amendment. and perhaps too broad. Let me go into planning for contingencies; therefore, Mr. President, I yield the floor. some of that in a little more detail. contingencies or emergencies, such as Mr. GRAMS addressed the Chair. First, I must oppose the amendment the Value Jet crash in the Everglades. The PRESIDING OFFICER. The Sen- because a floor amendment on an ap- There are two protections from that ator from Minnesota. propriations bill does not provide an kind of thing. One is the rule itself, and Mr. GRAMS. Mr. President, I would adequate opportunity in which to con- the other as the amendment to this like to call up amendment No. 5237 and sider this far-reaching proposal, and it bill. offer it as a second-degree amendment is, indeed, a far-reaching proposal. The So it just seems to me that if you be- to the pending committee amendment, Governmental Affairs Committee, as I lieve in the idea that the Government and ask for its immediate consider- think the proponent has already men- ought to be contained to those things ation. tioned, actually has a hearing sched- that are uniquely Government activi- The PRESIDING OFFICER. Is there uled for next week, September 19, on ties and that beyond that we ought to objection? Senator THOMAS’ related bill, S. 1724. I go to the private sector, we have a Mr. GRAMS. Mr. President, this is a know we have had several hearings put broader bill that we have had for some simple and straightforward amend- off, and I understand that, and I under- time. We intended to have hearings on ment. stand the frustrations of people when it. The hearings have been postponed Mr. GLENN. I object. they do not get appropriate hearings in twice—once at the request of the mi- The PRESIDING OFFICER. If the committee to go ahead and opt for di- nority. So we have been prepared to Senator will suspend. Is there objec- rect floor action. But consideration in have hearings on the broader bill. This tion? committee will consider that legisla- one simply deals with the newest OMB Mr. GLENN. Mr. President, I object, tion that also addresses Government supplemental handbook proposition. It and I suggest the absence of a quorum. and private sector issues. Consider- says that you have to continue to do The PRESIDING OFFICER. The Sen- ation by the committee with sub- what you have been doing; and that is ator from Minnesota has the floor. Is stantive jurisdiction is needed before consider the cost of doing it in the pri- there objection to the unanimous-con- this proposal should be considered on vate sector. sent request? the Senate floor. To bring the amend- It is hard for me to imagine that any- Mr. GLENN. Yes. There is objection. ment to the floor when the sponsor has one can object to the difficulty of The PRESIDING OFFICER. Objec- a hearing in only 1 week before the ap- doing things that can be done in the tion is heard. propriate committee I do not feel is the private sector, and doing them in the Mr. GLENN. I suggest the absence of best way to proceed, the best informed private sector if they are going to save a quorum. way to proceed on this issue. us money. The idea that you can’t do it The PRESIDING OFFICER. The Sen- Second, it is my feeling, having been in an emergency is not a valid one. It ator from Minnesota has the floor. The into some of these things over the last is not valid because of the handbook objection is heard. The Senator from several years, the amendment is unnec- exemption. It is not valid because of Minnesota has the floor. essary. The economy act at section 1535 the modification that we have put on Mr. GRAMS. Mr. President, I suggest of title XXXI of the United States Code the bill. This kind of thing, of course, the absence of a quorum. already requires that an agency head simply expands Government. The PRESIDING OFFICER. The determine that goods or services can- I mentioned that we introduced S. clerk will call the roll. not be provided as conveniently or 1724, the Freedom From Government The assistant legislative clerk pro- cheaply by a commercial enterprise be- Competition Act. It causes the Govern- ceeded to call the roll. fore going to another agency for those ment to go outside. It causes OMB to Mr. GLENN. Mr. President, I ask goods or services. The cost and per- study those things that are inherently unanimous consent that the order for formance requirement of the present governmental functions. the quorum call be rescinded. amendment would on their face have Senator STEVENS plans to hold a The PRESIDING OFFICER. Without basically the same result as the econ- hearing on this bill in September. The objection, it is so ordered. omy act. Small Business Committee in the Mr. GLENN. Mr. President, I must The relation of the amendment to House has already held several hear- oppose the amendment offered by my the current law is exactly the sort of September 11, 1996 CONGRESSIONAL RECORD — SENATE S10283 issue that should be discussed at a bombing, the search for survivors and air- Senate has sufficiently considered this committee hearing. I think we also craft parts following the explosion of TWA proposal in order to subject the Na- need to examine the relation of the 800, and numerous earthquake, fire and flood tional Labs, the Center for Naval Anal- OMB regulations required by the demands that are placed on the Department. ysis, and other FFRDC’s with the blan- These are extensive inter-agency arrange- amendment to OMB’s circular A–76 ments for DOD support in times of emer- ket requirements of this amendment, that currently governs agency cost gency that are totally undermined by this and they would be affected by it. They comparisons with private sector goods amendment. could not help but be affected by it. and services. To accept an amendment I strongly urge you to defer action on the Finally, I am concerned that there in the Chamber that on its face largely amendment being offered by Senator Thom- could be other situations that this duplicates existing law and regulation as until you have had an opportunity to hold amendment would needlessly burden is not the best way to proceed. a hearing on the implications of the amend- with reporting and study requirements. This overlap also concerns me with ment. This proposal while well intended, has There could be instances in which an far reaching consequences which must be regard to the franchise fund pilots cre- studied and understood. agency contracts for goods or services ated by the Government Management that another agency procures from JOHN J. HAMRE. Reform Act, GMRA, of 1994, which is other sources, even the private sector. Public Law 103–356. That act was a bi- Mr. GLENN. I understand though There are also revolving funds and partisan effort of the Governmental Af- that this will be modified to accommo- many interagency reimbursable activi- fairs Committee, and it passed unani- date that problem. I have not seen the ties that would appear to be covered by mously in the Senate. The GMRA, the modification yet specifically, but I un- the amendment. And to subject all Government Management Reform Act, derstand that Senator THOMAS has such activities to the terms of this franchise fund pilots open up competi- modified his amendment to address amendment, without certainty about tion between agency service providers concerns raised by the Department of the impact, concerns me very much. and the private sector for common ad- Defense concerning national emer- Again, the sponsors of the amend- ministrative services. This program gencies and that was one of the prob- ment may hope that OMB will provide uses basic market force principles to lems. I understand the amendment will the right exemptions for the right search for better, quicker, and cheaper provide an exemption for national se- cases. But the text of the amendment services. OMB is currently overseeing curity contingencies. Maybe that will is very, very comprehensive. Again, this program, and we should not enact solve the problem, maybe it will not, this is just another reason why I think new legislation that would affect it but that is a concern about the amend- we should not enact into law legisla- until we hear from OMB as to how this ment, and I think the scope of it is still tive language of such broad scope—not competition project is working. unclear. today, anyway. My third objection to the amendment If enacted into law in its original ver- Next week, OMB’s Deputy Director is that it is too broad. For example, in sion, the amendment would appear to for Management, John Koskinen, will its original version it had no exemp- prohibit, for instance, some other testify before the Governmental Affairs tion for national security emergencies things, and I do not know whether Committee on various OMB and other or danger to public health or safety. these are covered under contingencies agency initiatives to increase agency Let me say right there that we had a or not. It would appear to prohibit the reliance on the private sector. That is letter from the Under Secretary of the CIA from contracting with NSA or one of the subjects of the hearing, and Navy, John Hamre, who is working in DIA, the National Security Agency or to create incentives for agencies to these areas of better efficiency over in the Defense Intelligence Agency, for search for more economical ways to the Defense Department, and he felt it classified goods or services—for exam- procure goods and services. That hear- really gave a lot of trouble in this par- ple, a spy satellite or equipment—with- ing will be very informative as to this ticular area. out performing cost comparisons and debate. It should include this amend- I ask unanimous consent that his let- benchmarks. While OMB might try to ment, and that is where I think we provide for such exemptions in the reg- ter be printed in the RECORD. should consider this amendment, not There being no objection, the letter ulations required by the amendment, here on the appropriations legislation. was ordered to be printed in the the amendment, as I understood it, So I think I do not see any problem provides no limitations on its com- RECORD, as follows: with recommending to my colleagues, prehensive scope. with something of this broad a scope— UNDER SECRETARY OF DEFENSE, I am also concerned about the Washington DC, September 11, 1996. and this is not an insignificant amend- Hon. RICHARD C. SHELBY, amendment’s references to ‘‘enforcing ment, this is a major step in whatever Chairman, Subcommittee on Treasury, Postal any policy or any authority in any direction it would be leading and is Service and General Government, Committee other form.’’ I put that in quotes, con- very, very far-reaching—I think, to on Appropriations, U.S. Senate, Washing- cerned about the amendment’s ref- wait 1 week until the head of OMB can ton, DC. erence to ‘‘enforcing any policy or any give his testimony and give his opinion DEAR MR. CHAIRMAN: I have just learned of authority in any other form.’’ on this and indicate to us how this an amendment that Senator Thomas is pro- I am not certain what this might in- would operate at the executive branch posing to offer on the Appropriations Bill for clude. It could be interpreted to cover the Treasury, Postal Service and General level. It seems to me, that is not a Government. The amendment would require the budget. It would seem even to delay that is intolerable. that before one federal agency can provide a cover apportionment of funds. After For these reasons, I urge my col- service to another agency a cost comparison all, when OMB apportions funds, it con- leagues to oppose the amendment. I for providing the service would have to be veys an authority to outlay funds. How think it is very far-reaching. It is not made between the private sector and the would this impact on interagency ac- an innocuous little amendment; it is government agency. tivities? I am not sure. Maybe it would one that is very far-reaching, and after I recognize that the motivations behind be good. Maybe it would be bad. But we know the scope of it better, it this amendment are very worthwhile. We these terms do concern me. I do not be- should use the private sector as much as pos- might be something I could well sup- sible for providing services; however, the un- lieve we should enact into law such an port. But I would like to have Mr. intended consequences of this amendment overarching requirement, a very major Koskinen’s testimony on it and have it would be devastating to many of the cross piece of legislation, without careful before the committee so we could ex- agency operations that are now being con- consideration of its scope and nec- plore, in a little bit more detail, the ducted. essary exemptions. ramifications of this or the implica- In its current form, this amendment could The broad language of the amend- tions of it before we vote on it in an ap- cost lives and delay essential support that ment might also cover FFRDC’s. Many propriations bill acting on the floor has to occur immediately in time of emer- times agencies contract with another gency. Had this amendment been in place in today. the past, the Department of Defense (DOD) agency such as DOE for goods or serv- Mr. President, for all those reasons, I could not have transported equipment and ices to be provided by FFRDC, and this oppose the legislation and hope my col- material immediately for such catastrophes arrangement would seem to be covered leagues support that position. I yield as Hurricane Andrew, the Oklahoma City by the amendment. I do not believe the the floor. S10284 CONGRESSIONAL RECORD — SENATE September 11, 1996 The PRESIDING OFFICER (Mr. that simply puts us back to where it is. remaining in order to the Treasury- SANTORUM). The Senator from Wyo- If, in the hearings that subsequently Postal Service appropriations bill; that ming. occur, there is evidence that the OMB they be subject to second-degree Mr. THOMAS. Mr. President, I appre- change is appropriate, then I urge the amendments which are relevant to the ciate the comments of my colleague committee to authorize, in committee, first-degree amendment; that they may from Ohio. Let me see if I cannot re- them to do that. In the meantime, I be offered in the first degree or in the spond to some of them. think we ought not remove the require- second degree to a committee amend- First of all, they talk about a hear- ments, the simple requirements that if ment; that the committee amendments ing. We have delayed hearings twice you are going to offer a service to an- be subject to second-degree amend- now. We have asked for hearings, had other agency—not services for yourself, ments which are either on the list or them set up, they have been delayed— offer them for another agency, which is relevant to an amendment on the list, once at Senator GLENN’s request. I a growing tendency within Govern- if that amendment has been offered to think it is time we move forward with ment—that, first of all, you have to the committee amendment; that no this proposition. consider the outrageous notion of see- motions to recommit be in order and It is a narrow amendment. It is not a ing if there is an alternative that is that upon the disposition of these broad amendment. It is not a wide- less expensive. That is really not very amendments and the committee reaching amendment. As a matter of difficult. It is really not a new idea. amendments the bill be read for a third fact, it deals only with circular No. A– Most people who do significant work time. 76 and the language there where OMB contracting try to get more than one Mr. President, I submit for the has said, effective October 1997, ‘‘The idea of what it costs. That is what we RECORD the list. It is at the desk. The cost comparison requirements of this are talking about here. distinguished Democratic leader has a supplemental handbook will not apply As a matter of fact, I mentioned the copy of this list. to existing or renewed ISSA or consoli- idea that the statute on efficiency con- The list is as follows: dation of commercial services.’’ tinues to exist. The problem is OMB is REPUBLICAN AMENDMENTS TO H.R. 3756, THE This is not the broad bill that we not abiding by it. That is the problem. TREASURY-POSTAL APPROPRIATIONS BILL have asked for a hearing on. It is not It does continue to exist. It does say, Abraham—Relevant. nearly as broad as I think it ought to yet, in the statute, that we ought to be Shelby—Managers amendments. be to effect this idea that we ought to doing this stuff in the private sector. Shelby—Authority for GSA to work with be doing these things in the private The problem is, it is not being adhered Smithsonian to determine office space. sector. This notion that somehow we Stevens—Relevant. to. The procurement act provides that Stevens—(1) Allow ACIR to use non-appro- are going to get more efficiency out of an agency ‘‘can provide another agency priated funds; (2) IRS commission. doing it out of Government is one, I with goods and services if the goods Stevens—(1) Kodiak, Alaska Port of Entry think, we have gotten long past. So we and services cannot be provided by con- Designation; (2) FOIA/privacy. will be doing that, and we will be going tract as conveniently or cheaply as a Grassley—Add $28 million to USCS; RE- further. This one only has to do with commercial enterprise.’’ That is the DUCE TSM. the changes that have been made by law, but the rule negates that. That is Inhofe—Strike Section 404(FPS position OMB. repeal). what we are talking about. It is not a Thomas—Inter-service Support Agreement. The idea, of course, that it will affect widespread change, not an unknown. It Hatfield—Localflex pilot program. the letter that the Senator read from simply says we ought to go by what it Hatfield—Provide $1,450,000 for renovation the Department of Defense probably is says in the economy act, and not of Pioneer Courthouse in Portland, Oregon. not applicable in the first place. How- change it by OMB. Faircloth—(1) Prohibit IRS from using ever, we have, in order to make sure So, I suppose if we are going to deal color printing except when describing tax that is not the case, amended and with a broader bill, which I hope we law changes; (2) Social Security Administra- changed—modified the amendment tion. do—I hope we make some conversions Helms—Health care provider incentive with the language that ‘‘the regula- more to private sector use—then I plans. tions would not apply to contingency agree we ought to take a look at it in Brown—Financial Management Bill. operations associated with a national the committee. This part of it, how- Grams—Improve IRS telephone service. emergency.’’ Clearly, I think that does ever, simply says, live under the law. It Hutchison—Border Stations. that. simply says, do not change the law. Go Kassebaum—(1) Job Training; (2) Relevant. I want to interject here to ask unani- Lott—(1) Education; Relevant. ahead and ask that, when you want to Lott—(1) Terrorism; Relevant. mous consent that Senator STEVENS, provide services to another agency, Lott—(1) Drugs; Relevant. the chairman of the Governmental Af- that the private sector ought to be ex- Lott—(1) IRS; Relevant. fairs Committee, and Senator FRAHM amined first to see if, indeed, that is a Nickles—re: Welfare. be added as cosponsors to this amend- more efficient and more effective way Nickles—Workers rights. ment. to provide those services. Nickles—Presidential imunities. The PRESIDING OFFICER. Without Mr. President, I ask for the yeas and Nickles—Relevant. objection, it is so ordered. Hatch—Relevant. nays. Hatch—Relevant. Mr. THOMAS. The idea that is far- The PRESIDING OFFICER. Is there a McCain—HIDTA Funding. sweeping and far-ranging is that this sufficient second? McCain—Federal overtime pay. has been in place for all these years At the moment, there is not a suffi- McCain—Udall Foundation. until now. OMB simply changed it. It cient second. McCain—Relevant. puts it back where it was, before OMB Mr. THOMAS. We will ask when Jeffords—Relevant. changed this. So the idea that it is an there are more people here. Domenici—Relevant. unknown is simply not true. It is sim- Mr. LOTT. Mr. President, will the Ashcroft—Working flexibility. Ashcroft—Relevant. ply not the case. It simply says to distinguished Senator from Wyoming Thomas—Limit fund for Fed. Agencies to OMB, you cannot enforce these new yield? furnish commercially available services to rules that you put out that have Mr. THOMAS. Yes, I yield. other Fed. Agencies. changed what we have been doing now UNANIMOUS-CONSENT AGREEMENT Coverdell—Relevant. forever. So that is really what it Mr. LOTT. Mr. President, after con- Coverdell—Relevant. amounts to. sultation with the Democratic leader Gramm—Border stations. I think it is very important that we and with the hope we can get a finite Thompson—GSA telephone pilot project. D’Amato—TWA crash. move on these. We have had some other list and begin to work through these D’Amato—Commemorative coin. debates today about whether there amendments, as we have done over the Warner—GSA building security. have been hearings or whether there past couple of weeks, so we can get an Inhofe—Sec. 404. have not been hearings. It depends on agreement on amendments that we Lott—Relevant. which side you are on as to whether must, in fact, have votes on, I ask Lott—Relevant. that is important. But the fact is, this unanimous consent that the following TPO AMENDMENTS is a relatively minor change and one be the only first-degree amendments Biden—(1) Drugs; (2) Drugs. September 11, 1996 CONGRESSIONAL RECORD — SENATE S10285 Bingaman—Energy savings. tion successfully on this bill some time tion he says is already not working. Boxer—(1) Junk guns; (2) Pensions. in the not-too-distant future. Let’s make work the legislation that is Bryan—(1) COLA for judges; (2) White Mr. LOTT. Mr. President, did we get in law now. I am all for that. House Travel (w/Levin/Reid); (3) Congres- Basically, it does what we are propos- sional pension. unanimous consent agreement on that? Byrd—(1) Telecommuting center/W.VA; (2) The PRESIDING OFFICER. Yes. ing here. In fact, I have a copy of that Relevant. f Economy Act of 1982 here, and one of Daschle—(1) Congressional employees the things provided under section 1335 health insurance; (2) Education; (3) Arson & UNANIMOUS CONSENT under ‘‘agency agreements,’’ part 4 of Explosive repository; (4) Relevant; (5) Rel- AGREEMENT—H.R. 3662 paragraph (A) says: ‘‘The head of the evant; (6) Presidential immunities; (7) Wel- Mr. LOTT. Mr. President, I have an- agency decides ordered goods or serv- fare. ices cannot be provided as conveniently Dorgan—Indian Housing. other one. Showing full faith and effort Feingold—Committee amdt p 129. to be accommodating to the Senators, or cheaply by a commercial enterprise Feinstein—(1) Hate crimes (w/Wyden); (2) and to get agreements that they really already required.’’ Relevant; (3) Tagents. desire, I ask unanimous consent that I agree that should be lived up to. So Graham—(1) Medicare receipts using emer- during the Senate’s consideration of then we come in with the legislation gency care; (2) Welfare formula fairness. the Interior appropriations bill, that it that my colleague and friend, Senator Hollings—Death benefits. not be in order to consider any amend- THOMAS, says is not as broad as I am Kennedy—(1) Physicians gag (w/Wyden); (2) interpreting it to be, and yet the words Education; (3) Workers protection; (4) Legal ment relative to Ward Valley prior to services. Tuesday, September 17, 1996. This has in it say that ‘‘except as provided in Kerrey—(1) Managers package; (2) IRS re- been requested by the Senator from subsection (B)’’—which I will get to in view; (3) Relevant. California, Senator BOXER. We would a moment—‘‘none of the funds appro- Kerry-Feinstein—(1) Relevant; (2) Tagents. like to accommodate that request. priated under any other act may be Kohl—Gun free school zones. used by OMB or any other agency to Lautenberg—Domestic abusers guns. The PRESIDING OFFICER. Is there objection? Without objection, it is so publish, promulgate or enforce any pol- Levin—(1) White House travel (w/Reid); (2) icy, regulation, circular or any rule or SoS U.S./Japan auto. ordered. Moseley-Braun—Age discrimination. Mr. LOTT. Mr. President, I yield the authority in any other form that would Reid—(1) White House Travel (w/Levin); (2) floor. permit any Federal agency to provide a Judges’ pay. Mr. President, I suggest the absence commercially available property or Simon—(1) Desalinization; (2) Pension au- of a quorum. service to any other Department of diting. Government unless the policy, regula- Wyden—Physician’s gag (W/Kennedy). The PRESIDING OFFICER. The clerk will call the roll. tion, circular or other rule meets the Mr. LOTT. Mr. President, I would The assistant legislative clerk pro- requirements in subsection (B).’’ like to say right here that if there are ceeded to call the roll. Subsection (B) says 120 days after any additions made to this list, it will Mr. GLENN. Mr. President, I ask this OMB will prescribe regulations as be only after consultation and agree- unanimous consent that the order for required, subject to the following, ment between the two leaders. the quorum call be rescinded. which shall include the following: A re- That is the request. Mr. THOMAS. I object. quirement for comparison between the The PRESIDING OFFICER. Without The PRESIDING OFFICER. Objec- costs of providing the property or serv- objection, it is so ordered. tion is heard. ice concerned through the agency con- Mr. LOTT. Mr. President, I thank the The assistant legislative clerk con- cerned and the cost of providing such leader for his cooperation. It is a rath- tinued to call the roll. property or service through the private er lengthy list, unfortunately, but now Mr. GLENN. Mr. President, I ask sector. we have, at least, a list we can work unanimous consent that the order for That is a mammoth requirement for on. Hopefully, we will both be able to the quorum call be rescinded. any law or regulation to come out work through getting these amend- The PRESIDING OFFICER. Is there under. The (B) part of that, which is ments removed if they are not really objection? Without objection, it is so the last part, is a requirement for cost relevant to this bill. ordered. and performance benchmarks relating Mr. DASCHLE addressed the Chair. to the property or service provided rel- The PRESIDING OFFICER. The f ative to comparable services provided Democratic leader. TREASURY, POSTAL SERVICE, AND by other Government agencies and con- Mr. DASCHLE. Mr. President, let me GENERAL GOVERNMENT APPRO- tractors permitting the oversight of just say, the majority leader and I have PRIATIONS ACT, 1997 this—and so on—agency concerned had the opportunity in the last couple with the Office of Management and hours to talk to our Members and to The Senate continued with the con- Budget. urge their cooperation in coming forth sideration of the bill. That is a very, very broad-reaching, with prospective amendments. I would AMENDMENT NO. 5224, AS MODIFIED extremely broad-reaching, amendment. emphasize that they are prospective. I Mr. GLENN. Mr. President, it is my I would say it is true, it is already hope that in many cases Senators understanding we will each use about 5 covered under the Economy Act of 1982, would not feel compelled to offer them. minutes, and then I think the two lead- as I quoted just a moment ago, and the Our hope is that we can resolve this ers want to propose a unanimous-con- best thing I would advise is we bring bill some time in the not-too-distant sent request after that. So if we can this to the attention of Mr. Koskinen, future. proceed on that basis, would that be who is going to appear before the com- I hope that all of our colleagues can satisfactory with my colleague? mittee next week, that we ask his opin- work with us to limit the list of Mr. THOMAS. That is fine. ion about how broad-gauged this is and amendments, to limit the debate on Mr. GLENN. I ask unanimous con- why he is not already enforcing the the amendments, once they are called sent that we have 5 minutes on a side Economy Act of 1982. That is the way up, and to see if we cannot complete to wrap this up, and then we will prob- to proceed, as I see it, in good Govern- our work. I have asked Members of our ably go to a vote after that. ment, not just to automatically pass leadership to work with our caucus in The PRESIDING OFFICER. Without something that does the same thing order to put this list together now in a objection, it is so ordered. that is not being adhered to in earlier realistic fashion. And I hope that only Mr. GLENN. Mr. President, I want to legislation. in those cases where Senators truly respond briefly to the comments my Mr. President, I suggest we have that felt that it was essential that the colleague made a moment ago. This is as our method of procedure. I am all amendment be offered on this bill, that a broad act. He said the Economy Act for efficiency in Government, but I am it be done so. of 1982 is really not working and that is not just for passing one law and cover- So I am urging cooperation, in con- one reason we are putting this in. I ing up deficiencies in carrying out a cert with the majority leader, in the don’t like putting other legislation law that is already on the books and hope that we can come to some comple- that might not work on top of legisla- should be adhered to. S10286 CONGRESSIONAL RECORD — SENATE September 11, 1996 I reserve the remainder of my time. This is not a new idea. This is an idea Ford Kerry Nunn Glenn Lautenberg Pell How much time do I have remaining, that now exists in law but has been Harkin Leahy Reid Mr. President? taken out of the law by OMB. This Heflin Levin Robb The PRESIDING OFFICER. The Sen- would put it back. It is not broad. I Hollings Lieberman Rockefeller Inouye Mikulski Sarbanes ator has 11⁄2 minutes remaining. hope very much that the Senator from Johnston Moseley-Braun Simon Mr. DASCHLE. Mr. President, I Ohio, and his committee, will take a Kennedy Moynihan Wellstone think for the interest of Senators, as I look at this whole broad thing. But in Kerrey Murray Wyden understand it, we are about to have a the meantime, I think we need to re- NOT VOTING—2 vote. Does the Senator from Wyoming turn where we were so that private in- Pryor Roth know approximately what length of ad- dustry can be part of this idea. ditional time he will need to complete We have used it for a very long time. The amendment (No. 5224), as modi- his remarks? It has to do with being more efficient. fied, was agreed to. Mr. SHELBY. Mr. President, I move Mr. THOMAS. I believe I probably It has to do with good Government. It to reconsider the vote. have about 2 minutes, and Senator has to do with strengthening the pri- Mr. KERREY. I move to lay that mo- GLENN has 11⁄2 minutes. So I would vate sector. I certainly urge my col- guess less than 5 minutes. tion on the table. leagues to vote aye. The motion to lay on the table was Mr. DASCHLE. Mr. President, I ask Mr. President, I ask for the yeas and unanimous consent, assuming that is agreed to. nays. Mr. SHELBY. Mr. President, I sug- agreeable to the majority leader, to The PRESIDING OFFICER. Is there a gest the absence of a quorum. have the vote on the amendment of- sufficient second? There is a sufficient The PRESIDING OFFICER. The fered by the Senator from Wyoming no second. clerk will call the roll. later than 6:20. The yeas and nays were ordered. The legislative clerk proceeded to Mr. THOMAS. It is fine with me. Mr. GLENN addressed the Chair. call the roll. Mr. GLENN. That will be fine. The PRESIDING OFFICER. The Sen- Mr. SHELBY. Mr. President, I ask Mr. LOTT. Mr. President, if that re- ator from Ohio. unanimous consent that the order for quest was not made, I enter that re- Mr. GLENN. Mr. President, I yield the quorum call be rescinded. quest now. I ask unanimous consent back the balance of my time, and as- The PRESIDING OFFICER. Without that we have that vote not later than sume my colleague does. objection, it is so ordered. 6:20, and before if all time is yielded Mr. KERREY addressed the Chair. Mr. SHELBY. I ask unanimous con- back. sent that the pending committee The PRESIDING OFFICER. Without The PRESIDING OFFICER. The Sen- ator from Nebraska. amendments be temporarily laid aside. objection, it is so ordered. The PRESIDING OFFICER. Without The PRESIDING OFFICER. The Sen- Mr. KERRY. Mr. President, I ask unanimous consent to add Senator objection, it is so ordered. ator from Wyoming has 2 minutes 5 AMENDMENTS NOS. 5249 THROUGH AMENDMENT seconds remaining. MCCONNELL as a cosponsor to amend- ment No. 5232. NO. 5255, EN BLOC Mr. THOMAS. Mr. President, I would Mr. SHELBY. Mr. President, I send a agree with the Senator if what he is The PRESIDING OFFICER. Without objection, it is so ordered. group of amendments, en bloc, to the saying were the case, and I think it is desk and ask for their immediate con- not. We have indicated that the statute The question occurs on agreeing to amendment No. 5224, as modified, of- sideration. requires under the Efficiency Act what The PRESIDING OFFICER. The fered by the Senator from Wyoming. we are asking here: that there be this clerk will report. effort to communicate in the private The yeas and nays have been ordered. The legislative clerk read as follows: The clerk will call the roll. sector and measure that cost. The Senator from Alabama [Mr. SHELBY] The problem is this one right here. The legislative clerk called the roll. proposes amendments, en bloc, numbered This is March 1996, called the ‘‘Revised Mr. NICKLES. I announce that the 5249 through amendment No. 5255. Supplemental Handbook, Performance Senator from Delaware [Mr. ROTH] is Mr. SHELBY. Mr. President, I ask of Commercial Activities, Executive necessarily absent. unanimous consent that reading of the Office of the President, Office of Man- Mr. FORD. I announce that the Sen- amendments be dispensed with. agement and Budget.’’ It says: ator from Arkansas [Mr. PRYOR] is ab- The PRESIDING OFFICER. Without The cost comparison requirements of this sent because of family illness. objection, it is so ordered. supplemental handbook will not apply to ex- The PRESIDING OFFICER. Are there The amendments are as follows: isting or renewed ISSA’s or the consolida- any other Senators in the Chamber de- AMENDMENT NO. 5249 tion of commercial services. siring to vote? (Purpose: To provide for the Advisory Com- So it is not just a function of the law The result was announced—yeas 59, mission on Intergovernmental Affairs to not being lived up to but, in fact, is a nays 39, as follows: continue operations) change that has been put in place by [Rollcall Vote No. 285 Leg.] Page 93 after line 19 insert the following OMB. So that is what we are seeking to YEAS—59 new section: do. We are not seeking to change the SEC. . Notwithstanding the provision Abraham Faircloth Lott law. We are not seeking to change the Ashcroft Feinstein Lugar under the heading ‘‘ADVISORY COMMISSION ON basic operation of this statute, but we Baucus Frahm Mack INTERGOVERNMENTAL RELATIONS’’ under title are saying that there are changes made Bennett Frist McCain IV of the Treasury, Postal Service, and Gen- Biden Gorton McConnell eral Government Appropriations Act, 1996 by Executive order which remove that Bond Graham Murkowski (Public Law 104–52; 109 Stat. 480), the Advi- requirement that those activities that Bradley Gramm Nickles sory Commission on Intergovernmental Re- are being carried on by one agency for Breaux Grams Pressler lations may continue in existence during fis- another, not the activities for them- Brown Grassley Santorum Burns Gregg Shelby cal year 1997 and each fiscal year thereafter. selves, one agency for another, that the Campbell Hatch Simpson requirement continue to exist as it has Chafee Hatfield Smith AMENDMENT NO. 5250 in the past, that we see if there are Coats Helms Snowe (Purpose: To strike section 404) Cochran Hutchison Specter On page 60, line 19 strike all through line commercial activities available at a Cohen Inhofe Stevens lesser, more efficient cost. Coverdell Jeffords Thomas 21. This is simply an effort to put back Craig Kassebaum Thompson AMENDMENT NO. 5251 in place the requirement that has been D’Amato Kempthorne Thurmond DeWine Kohl Warner (Purpose: To provide for an audit by Inspec- in place for a very long time, that for Domenici Kyl tor Generals of administratively uncon- the activities that are acquired from NAYS—39 trollable overtime practices, to revise another agency within Government, guidelines for such practices, and for other that there be an effort to determine if Akaka Bumpers Dodd purposes) Bingaman Byrd Dorgan it can be done more cheaply, more effi- Boxer Conrad Exon At the appropriate place in the bill, insert ciently in the private sector. Bryan Daschle Feingold the following new section: September 11, 1996 CONGRESSIONAL RECORD — SENATE S10287 SEC. . (a) No later than 45 days after the to pay overtime to law enforcement of- and the payment of millions of dollars in date of the enactment of this Act, the In- ficers for vital investigative duties overtime to federal law enforcement officers. spector General of each Federal department that require them to work irregular In a hearing of the House Government Re- form and Oversight subcommittee on na- or agency that uses administratively uncon- and unscheduled hours—pursuing sus- trollable overtime in the pay of any em- tional security Republican members assailed ployee shall— pects, undercover work, special inves- what they described as a ‘‘controversial Clin- (1) conduct an audit on the use of adminis- tigative operations, et cetera. That ton administration program,’’ called Citizen- tratively uncontrollable overtime by em- makes sense. Agency regulations stipu- ship USA, that has streamlined naturaliza- ployees of such department or agency, which late that AUO should be reserved for tion procedures and helped produce record shall include— work duties that are ‘‘compelling’’ and numbers of new citizens this year. (A) an examination of the policies, extent, where it would be negligent for officers Rep. Mark Edward Souder (R–Ind.) charged costs, and other relevant aspects of the use to stop their enforcement actions. that a program in which the INS licenses pri- vate organizations to test applicants on U.S. of administratively uncontrollable overtime What has been going on, however, for at the department or agency; and civics and English proficiency has led to ‘‘se- (B) a determination of whether the eligi- too many of the 6,300 employees receiv- rious instances of testing fraud in the citi- bility criteria of the department or agency ing AUO, is that it has turned into a zenship process.’’ He said the INS ‘‘has done and payment of administratively uncontrol- unjustified salary and retirement sup- a very poor job of * * * cracking down on lable overtime comply with Federal statu- plement for the most routine work du- testing fraud’’ and suggested that the Clin- tory and regulatory requirements; and ties imaginable. And that makes no ton administration is pushing naturalization (2) submit a report of the findings and con- sense whatsoever for taxpayers. as part of a plan to enlist large numbers of clusions of such audit to— I’d like to describe the abuses of AUO new Democratic voters in time for the No- (A) the Office of Personnel Management; that occurred in a single Federal agen- vember elections. (B) the Governmental Affairs Committee T. Alexander Aleinikoff, executive associ- of the Senate; and cy in my State, as revealed by a self- ate commissioner of the INS for programs, (C) the Government Reform and Oversight less Federal employee who stood much rejected those charges. He said the agency Committee of the House of Representatives. to lose by uncovering this waste. has tightened monitoring of the privatized (b) No later than 30 days after the submis- One Immigration and Naturalization testing, which began under the previous Re- sion of the report under subsection (a), the Service [INS] officer in Arizona re- publican administration, and defended the Office of Personnel Management shall issue ported that every single officer and su- Citizenship USA program as a needed re- revised guidelines to all Federal departments pervisor at his facility was receiving sponse to an upsurge of applicants that and agencies that— the maximum AUO possible, despite threatened to overwhelm the naturalization (1) limit the use of administratively uncon- system. trollable overtime to employees meeting the the fact that ‘‘In two years . . . not one While Republicans see politics behind the statutory intent of section 5545(c)(2) of title legitimately qualifying AUO hour has processing of this year’s record 1 million- 5, United States Code; and been worked in my department.’’ plus citizenship applicants, administration (2) expressly prohibit the use of adminis- Mr. President, somehow those duties officials regard the subcommittee’s inves- tratively uncontrollable overtime for— don’t sound like ‘‘hot pursuit’’ to me. tigation itself as politically motivated. (A) customary or routine work duties; and They certainly are necessary, but they Among the witnesses at yesterday’s hear- (B) work duties that are primarily admin- do not meet the statutory criteria for ing was Jewell Elghazali, who formerly worked in Dallas for Naturalization Assist- istrative in nature, or occur in noncompel- AUO. This is not an isolated problem of ling circumstances. ance Services, Inc., one of six entities au- mere local concern. Both the Inspector thorized by INS to test immigrants on civics Mr. MCCAIN. Mr. President, this General and the INS’s top policy- and English as part of the naturalization amendment will address the abuses of makers have recognized this ongoing process. Administratively Uncontrolled Over- abuse of AUO. ‘‘There is a lot of fraud going on’’ in the time—AUO—throughout the Federal The INS investigated the use of AUO programs, she testified. When she alerted a Government. at a detention facility in Arizona and superior in the company to indications of The costs to taxpayers of AUO mis- found that: ‘‘None of the work per- cheating on tests administered by affiliates, use, estimated at $323 million at a sin- she was fired, she said. formed [in Florence] met the criteria Elghazali said that in grading tests during gle Federal agency since 1990, are sig- for AUO, because the overtime hours her five months at the firm, she found nu- nificant. With improper oversight, AUO could be administratively controlled.’’ merous cases in which the written answers of is likely to be costing the Treasury The Inspector General at the Depart- different applicants were in the same hand- tens of millions of dollars a year. This ment of Justice then further inves- writing and responses to multi-choice ques- amendment will empower the Office of tigated this INS facility, and the IG’s tions—including wrong answers—were iden- Personnel Management [OPM] to stop findings provide the perfect rationale tical. She said that in many cases, appli- cants who had passed the test could not these abuses. for this amendment. The IG stated that First, it directs the Inspector Gen- speak English when they called to inquire ‘‘[W]e encountered no information [at about the results. Some Spanish speakers be- eral [IG] of each agency that utilizes the INS detention center] to dem- came irate when there was no one in the of- AUO to audit its use and cost. The find- onstrate efforts to follow up on or im- fice who could respond to them in their na- ings of these audits must be reported plement’’ the INS’s own recommenda- tive language, she said. to the Congress and the Office of Per- tions. Paul W. Roberts, the chief executive offi- sonnel Management within 45 days. The IG recommended that ‘‘The issue cer of Naturalization Assistance Services, Second, OPM shall review these IG of AUO needs to be systematically ad- told the subcommittee that the firm has audits, and issue revised guidelines to ‘‘acted swiftly to revoke all licensees discov- dressed.’’ That is exactly what this ered engaging in improprieties.’’ He said the the respective agencies to limit the use amendment would accomplish. for-profit company has shut down 43 of its of AUO to its statutory intent. These I would like to add that ‘‘Citizens test sites as a result of its own monitoring strengthened guidelines shall prohibit Against Government Waste’’ have en- and argued that, in any case, passing the the use of AUO for routine or inappro- dorsed this amendment, and I urge my standardized test does not automatically priate work duties. colleagues to support it. guarantee citizenship for an applicant, who The amendment directs OPM to issue I ask unanimous consent that some must still pass an interview with an INS ex- these new guidelines, to prevent the accompanying material be printed in aminer. INS Commissioner Doris M. Meissner ac- ongoing misuse of AUO, within 30 days the RECORD. knowledged that ‘‘there have been problems’’ of receiving the Inspector General au- There being no objection, the mate- with the company, which has been warned dits. rial was ordered to be printed in the that it faces suspension unless cleared by an For my colleagues who, like myself, RECORD, as follows: INS review. ‘‘If we need to suspend them, we have not been acutely aware of the de- [From the Washington Post, Sept. 11, 1996] will,’’ she said. But she insisted that ‘‘there is no validity to the notion that people are tails and minutiae of Federal overtime INS ACCUSED OF TOLERATING CITIZENSHIP becoming citizens today who would not have policies, let me briefly describe AUO TESTING FRAUD and how it can readily be fixed on be- 10 years ago’’ because of a lowering of stand- (By William Branigin) ards. She said citizenship requirements have half of taxpayers in this appropriations The Immigration and Naturalization Serv- remained unchanged. bill. ice came under fire yesterday from congres- In a separate news conference yesterday, ‘‘Administratively Uncontrolled sional Republicans over allegations of fraud Sen. John McCain (R–Ariz.) called for a con- Overtime’’ was authorized by Congress in the testing of new citizenship applicants gressional investigation into alleged abuses S10288 CONGRESSIONAL RECORD — SENATE September 11, 1996 by the INS and other government agencies of partment of Interior; and the Department of I urge its adoption. a type of overtime pay. He cited a report by Agriculture. AMENDMENT NO. 5253 a watchdog group, Citizens Against Govern- McCain plans to amend a Senate appro- (Purpose: To provide for training of explosive ment Waste, that the INS has spent $323 mil- priations bill to place tighter restrictions on detection canines) lion on ‘‘administratively uncontrollable such overtime and will ask for hearings this overtime’’ since 1990, much of it in violation fall before the Senate Governmental Affairs At the appropriate place in the bill insert of regulations. Committee, Raidt said. the following new section: The overtime pay, amounting to as much Critics say INS supervisors have an incen- SEC. . EXPLOSIVES DETECTION CANINE PRO- as 25 percent of many employees’ salaries, tive to keep paying the special overtime. If GRAM. has become an ‘‘entitlement program’’ that managers supervise employees who qualify (a) AUTHORIZATION.— wastes tens of millions of dollars a year, the for the extra pay, then the managers also (1) The Secretary of the Treasury is au- watchdog group charged. qualify for the money, according to federal thorized to establish scientific certification While the overtime is supposed to com- guidelines. standards for explosives detection canines, pensate law enforcement officers for working and shall provide, on a reimbursable basis, Amendment No. 5252 long hours on investigations or surveillance, for the certification of explosives detection it has been used routinely to pay for mun- At the appropriate place, insert the follow- canines employed by federal agencies, or dane duties such as delivering mail, guarding ing: other agencies providing explosives detec- SEC. . Notwithstanding section 8116 of prisoners during meal times and substituting tion services at airports in the United title 5, United States Code, and in addition for absent employees, the citizens group States. to any payment made under 5 U.S.C. 8101 et (2) The Secretary of the Treasury shall es- charged. Besides the INS, ‘‘administratively seq., beginning in fiscal year 1997 and there- uncontrollable overtime’’ has been used in tablish an explosives detection canine train- after, the head of any department or agency ing program for the training of canines for the departments of justice, defense, interior is authorized to pay from appropriations and agriculture, the group said. explosives detection at airports in the Unit- made available to the department or agency ed States. Meissner said that in principle, the over- a death gratuity to the personal representa- time category ‘‘is a very good deal for the (b) AUTHORIZATION OF APPROPRIATIONS.— tive (as that term is defined by applicable There are authorized to be appropriated such taxpayers.’’ But she conceded that there has law) of a civilian employee of that depart- been a tendency to misuse it as ‘‘an ongoing sums as may be necessary to carry out the ment or agency whose death resulted from purposes of this section. bonus’’ and vowed renewed efforts to ensure an injury sustained in the line of duty on or it is properly managed. after August 2, 1990: Provided, That payments AMENDMENT NO. 5254 made pursuant to this section, in combina- At the appropriate place in the bill, insert [From the Tribune, Sept. 2, 1996] tion with the payments made pursuant to the following: INS TO REVIEW OVERTIME POLICIES AFTER sections 8133(f) and 8134(a) of such title 5 and CHARGES OF ABUSE section 312 of Public Law 103–332 (108 Stat. SEC. . DESIGNATION OF MARK O. HATFIELD UNITED STATES COURTHOUSE. (By the Associated Press) 2537), may not exceed a total of $10,000 per employee. The United States Courthouse under con- FLORENCE.—The Immigration and Natu- struction at 1030 Southwest 3d Avenue in ralization Service will review its policies for Mr. HOLLINGS. Mr. President, my Portland, Oregon, shall be known and des- filing overtime after government and civic amendment is quite simple. It in- ignated as the ‘‘Mark O. Hatfield United groups showed it improperly spent millions creases the reimbursement for funeral States Courthouse’’. of dollars on overtime. and burial costs and specific related ex- SEC. 2. REFERENCES. The agency’s decision followed criticism penses to $10,000 for Federal civilian Any reference in a law, map, regulation, by U.S. Sen. John McCain and a citizens employees who die as result of injuries document, paper, or other record of the Unit- watchdog group, which released a report last ed States to the courthouse referred to in week estimating that the INS office here sustained in the performance of duty. section 1 shall be deemed to be a reference to spent $60 million on overtime last year This amendment would apply to the the ‘‘Mark O. Hatfield United States Court- alone. dedicated civil servants who were trag- house’’. The extra payments allow officers to pad ically killed in the line of duty while their pensions and up their salaries by as accompanying Commerce Secretary SEC. 3. EFFECTIVE DATE. much as 25 percent, according to the Citizens Ron Brown on his trade mission to This section shall take effect on January 2, 1997. Against Government Waste. Bosnia and Croatia. And it would apply At issue is special pay called Administra- to the survivors of those Federal civil- tively Uncontrollable Overtime (AUO). The AMENDMENT NO. 5255 fund was created to compensate federal offi- ian employees who died during the (Purpose: To provide for the establishment of cers for duties that require irregular hours, bombing of the Murrah Building in uniform accounting systems, standards, such as surveillance or undercover work. Oklahoma City. and reporting systems in the Federal Gov- Federal rules say such overtime can be Under current law, Federal civilian ernment, and for other purposes) used only for ‘‘uncontrollable’’ overtime— employees who die in the performance At the end of the bill, add the following work that can’t be regulated or routinely of duty receive only a $1,000 reimburse- new title: scheduled by supervisors. ment for funeral and burial costs, and TITLE ll—FEDERAL FINANCIAL According to government reports, the INS related expenses. This amount was set MANAGEMENT IMPROVEMENT managers in Florence are using the fund for in 1960, and it has not been adjusted ll day-to-day duties, such as delivering mail, SEC. 01. SHORT TITLE. guarding prisoners during meals, going to since that time. This title may be cited as the ‘‘Federal Fi- court and filling in for absent employees. This is not the case for military per- nancial Management Improvement Act of Documents obtained by The Arizona Re- sonnel. In 1990, at the beginning of the 1996’’. public show a 1995 INS probe and another in gulf war, Congress increased death-re- SEC. ll02. FINDINGS AND PURPOSES. April 1996 by the Justice Department’s Office lated benefits for the survivors of the (a) FINDINGS.—The Congress finds the fol- of the Inspector General concluded the prac- military personnel killed in the line of lowing: tice being abused. duty. Military survivors are currently (1) Much effort has been devoted to ‘‘None of the work performed in Florence provided slightly more than $10,000 for strengthening Federal internal accounting met the criteria for AUO because the over- funeral and burial costs. controls in the past. Although progress has time hours could be administratively con- My amendment recognizes that civil- been made in recent years, Federal account- trolled,’’ the 1995 INS report said. ing standards have not been uniformly im- Virginia Kice, spokeswoman for the INS ian employees are no less dedicated plemented in financial management systems Western Region, said the agency is aware of and they are all too often called upon for agencies. the concerns and is conducting a review of to make the ultimate sacrifice in the (2) Federal financial management contin- the policy. service of the United States. Further, I ues to be seriously deficient, and Federal fi- ‘‘We want to be sure that whatever we do should note that this amendment does nancial management and fiscal practices is not only appropriate, that it’s prudent, it’s not require additional appropriations. have failed to— responsible and it won’t have a negative im- It provides the discretion to agency (A) identify costs fully; pact on our enforcement operation,’’ she heads to pay these increased benefits (B) reflect the total liabilities of congres- said. from existing appropriations. sional actions; and According to John Raidt, McCain’s legisla- (C) accurately report the financial condi- tive director, such abuse is likely rampant in Mr. President, in short, this amend- tion of the Federal Government. government agencies. The special overtime ment provides for equity and updates (3) Current Federal accounting practices do is available for employees of at least four current law. This is a good amendment not accurately report financial results of the agencies: the Justice Department, which in- that I believe all my colleagues should Federal Government or the full costs of pro- cludes INS; the Defense Department; the De- support. grams and activities. The continued use of September 11, 1996 CONGRESSIONAL RECORD — SENATE S10289 these practices undermines the Govern- United States Government Standard General financial management systems into compli- ment’s ability to provide credible and reli- Ledger at the transaction level. ance with the requirements of subsection (a) able financial data and encourages already (b) PRIORITY.—Each agency shall give pri- by the date specified under subparagraph (B). widespread Government waste, and will not ority in funding and provide sufficient re- (3) TRANSFER OF FUNDS FOR CERTAIN IM- assist in achieving a balanced budget. sources to implement this title. PROVEMENTS.—For an agency that has estab- (4) Waste and inefficiency in the Federal (c) AUDIT COMPLIANCE FINDING.— lished a remediation plan under paragraph Government undermine the confidence of the (1) IN GENERAL.—Each audit required by (2), the head of the agency, to the extent pro- American people in the Government and re- section 3521(e) of title 31, United States Code, vided in an appropriation and with the con- duce the Federal Government’s ability to ad- shall report whether the agency financial currence of the Director, may transfer not to dress vital public needs adequately. management systems comply with the re- exceed 2 percent of available agency appro- (5) To rebuild the accountability and credi- quirements of subsection (a). priations to be merged with and to be avail- bility of the Federal Government, and re- (2) CONTENT OF REPORTS.—When the person able for the same period of time as the ap- store public confidence in the Federal Gov- performing the audit required by section propriation or fund to which transferred, for ernment, agencies must incorporate ac- 3521(e) of title 31, United States Code, reports priority financial management system im- counting standards and reporting objectives that the agency financial management sys- provements. Such authority shall be used established for the Federal Government into tems do not comply with the requirements of only for priority financial management sys- their financial management systems so that subsection (a), the person performing the tem improvements as identified by the head all the assets and liabilities, revenues, and audit shall include in the report on the of the agency, with the concurrence of the audit— expenditures or expenses, and the full costs Director, and in no case for an item for (A) the name and position of any officer or of programs and activities of the Federal which Congress has denied funds. The head of employee responsible for the financial man- Government can be consistently and accu- the agency shall notify Congress 30 days be- agement systems that have been found not rately recorded, monitored, and uniformly fore such a transfer is made pursuant to such to comply with the requirements of sub- reported throughout the Federal Govern- authority. section (a); ment. (4) REPORT IF NONCOMPLIANCE WITHIN TIME (B) all facts pertaining to the failure to (6) Since its establishment in October 1990, PERIOD.—If an agency fails to bring its finan- comply with the requirements of subsection the Federal Accounting Standards Advisory cial management systems into compliance (a), including— Board (hereinafter referred to as the within the time period specified under para- (i) the nature and extent of the noncompli- ‘‘FASAB’’) has made substantial progress to- graph (2), the Director shall submit a report ance; ward developing and recommending a com- of such failure to the Committees on Govern- (ii) the primary reason or cause of the non- prehensive set of accounting concepts and mental Affairs and Appropriations of the compliance; standards for the Federal Government. When Senate and the Committees on Government (iii) any official responsible for the non- the accounting concepts and standards devel- Reform and Oversight and Appropriations of compliance; and oped by FASAB are incorporated into Fed- the House of Representatives. The report (iv) any relevant comments from any re- eral financial management systems, agencies shall include— sponsible officer or employee; and will be able to provide cost and financial in- (A) the name and position of any officer or (C) a statement with respect to the rec- formation that will assist the Congress and employee responsible for the financial man- ommended remedial actions and the time- financial managers to evaluate the cost and agement systems that have been found not frames to implement such actions. performance of Federal programs and activi- to comply with the requirements of sub- ties, and will therefore provide important in- (d) COMPLIANCE DETERMINATION.— (1) IN GENERAL.—No later than the date de- section (a); formation that has been lacking, but is need- (B) the facts pertaining to the failure to ed for improved decisionmaking by financial scribed under paragraph (2), the Director, acting through the Controller of the Office of comply with the requirements of subsection managers and the Congress. (a), including the nature and extent of the (7) The development of financial manage- Federal Financial Management, shall deter- mine whether the financial management sys- noncompliance, the primary reason or cause ment systems with the capacity to support for the failure to comply, and any extenuat- these standards and concepts will, over the tems of an agency comply with the require- ments of subsection (a). Such determination ing circumstances; long term, improve Federal financial man- (C) a statement of the remedial actions agement. shall be based on— (A) a review of the report on the applicable needed; and (b) PURPOSES.—The purposes of this title (D) a statement of any administrative ac- are to— agency-wide audited financial statement; tion to be taken with respect to any respon- (1) provide for consistency of accounting (B) the agency comments on such report; sible officer or employee. by an agency from one fiscal year to the and (f) PERSONAL RESPONSIBILITY.—Any finan- next, and uniform accounting standards (C) any other information the Director cial officer or program manager who know- throughout the Federal Government; considers relevant and appropriate. ingly and willfully commits, permits, or au- (2) require Federal financial management (2) DATE OF DETERMINATION.—The deter- thorizes material deviation from the require- systems to support full disclosure of Federal mination under paragraph (1) shall be made ments of subsection (a) may be subject to ad- financial data, including the full costs of no later than 90 days after the earlier of— ministrative disciplinary action, suspension Federal programs and activities, to the citi- (A) the date of the receipt of an agency- from duty, or removal from office. zens, the Congress, the President, and agen- wide audited financial statement; or cy management, so that programs and ac- (B) the last day of the fiscal year following SEC. ll04. APPLICATION TO CONGRESS AND tivities can be considered based on their full the year covered by such statement. THE JUDICIAL BRANCH. costs and merits; (e) COMPLIANCE IMPLEMENTATION.— (a) IN GENERAL.—The Federal financial (3) increase the accountability and credi- (1) IN GENERAL.—If the Director determines management requirements of this title may bility of Federal financial management; that the financial management systems of be adopted by— (4) improve performance, productivity and an agency do not comply with the require- (1) the Senate by resolution as an exercise efficiency of Federal Government financial ments of subsection (a), the head of the agen- of the rulemaking power of the Senate; management; cy, in consultation with the Director, shall (2) the House of Representatives by resolu- (5) establish financial management sys- establish a remediation plan that shall in- tion as an exercise of the rulemaking power tems to support controlling the cost of Fed- clude the resources, remedies, and inter- of the House of Representatives; or eral Government; mediate target dates necessary to bring the (3) the Judicial Conference of the United (6) build upon and complement the Chief agency’s financial management systems into States by regulation for the judicial branch. Financial Officers Act of 1990 (Public Law compliance. (b) STUDY AND REPORT.—No later than Oc- 101–576; 104 Stat. 2838), the Government Per- (2) TIME PERIOD FOR COMPLIANCE.—A reme- tober 1, 1997— formance and Results Act of 1993 (Public diation plan shall bring the agency’s finan- (1) the Secretary of the Senate and the Law 103–62; 107 Stat. 285), and the Govern- cial management systems into compliance Clerk of the House of Representatives shall ment Management Reform Act of 1994 (Pub- no later than 2 years after the date on which jointly conduct a study and submit a report lic Law 103–356; 108 Stat. 3410); and the Director makes a determination under to Congress on how the offices and commit- (7) increase the capability of agencies to paragraph (1), unless the agency, with con- tees of the Senate and the House of Rep- monitor execution of the budget by more currence of the Director— resentatives, and all offices and agencies of readily permitting reports that compare (A) determines that the agency’s financial the legislative branch may achieve compli- spending of resources to results of activities. management systems are so deficient as to ance with financial management and ac- SEC. ll03. IMPLEMENTATION OF FEDERAL FI- preclude compliance with the requirements counting standards in a manner comparable NANCIAL MANAGEMENT IMPROVE- of subsection (a) within 2 years; to the requirements of this title; and MENTS. (B) specifies the most feasible date for (2) the Chief Justice of the United States (a) IN GENERAL.—Each agency shall imple- bringing the agency’s financial management shall conduct a study and submit a report to ment and maintain financial management systems into compliance with the require- Congress on how the judiciary may achieve systems that comply with Federal financial ments of subsection (a); and compliance with financial management and management systems requirements, applica- (C) designates an official of the agency who accounting standards in a manner com- ble Federal accounting standards, and the shall be responsible for bringing the agency’s parable to the requirements of this title. S10290 CONGRESSIONAL RECORD — SENATE September 11, 1996 SEC. ll05. REPORTING REQUIREMENTS. ports both financial and nonfinancial func- ed set of accounting standards across (a) REPORTS BY DIRECTOR.—No later than tions of the Federal Government or compo- the hundreds of agencies and depart- March 31 of each year, the Director shall nents thereof. ments that make up this Government. submit a report to the Congress regarding SEC. ll08. EFFECTIVE DATE. Enactment of this measure into law implementation of this title. The Director This title shall take effect on October 1, would be a great step toward putting may include the report in the financial man- 1996. Federal financial management in agement status report and the 5-year finan- Mr. BROWN. Mr. President, today I cial management plan submitted under sec- order. It requires that all Federal agen- tion 3512(a)(1) of title 31, United States Code. offer an amendment that has already cies implement and maintain uniform (b) REPORTS BY THE COMPTROLLER GEN- passed the Senate as a free-standing accounting standards. The result will ERAL.—No later than October 1, 1997, and Oc- bill called the Federal Financial Man- be more accurate and reliable informa- tober 1, of each year thereafter, the Comp- agement Improvement Act of 1996 (S. tion for program managers and leaders troller General of the United States shall re- 1130). This measure brings urgent re- in Congress, meaning better decisions port to the appropriate committees of the forms to Federal financial manage- will be made: tax dollars will be put to Congress concerning— ment and restores accountability to (1) compliance with the requirements of better use, and a measure of confidence section ll03(a) of this title, including the Government. The Senate should in- in the Government will be restored. whether the financial statements of the Fed- clude this measure in the Treasury, While this is not the kind of legislation eral Government have been prepared in ac- Postal Service, and General Govern- that makes headlines, it is of great sig- cordance with applicable accounting stand- ment appropriations bill because it is nificance. Its passage would be a major ards; and our best hope for enacting these impor- accomplishment for the 104th Congress. (2) the adequacy of uniform accounting tant reforms into law this year. There Mr. SHELBY. Mr. President, the standards for the Federal Government. is very little time left in this session amendments I have offered are as fol- SEC. ll06. CONFORMING AMENDMENTS. and it is of the utmost importance that lows: One is for Senator STEVENS, to (a) AUDITS BY AGENCIES.—Section 3521(f)(1) Congress send this measure to the provide that the ACIR utilize non- of title 31, United States Code, is amended in President before we leave town. How- the first sentence by inserting ‘‘and the Con- appropriated funds for continued oper- troller of the Office of Federal Financial ever, I strongly encourage efforts cur- ations; for Senator INHOFE, to strike Management’’ before the period. rently underway in the House Govern- section 404 of the bill; for Senator (b) FINANCIAL MANAGEMENT STATUS RE- ment Reform and Oversight Committee MCCAIN, regarding a study of the ad- PORT.—Section 3512(a)(2) of title 31, United to pass S. 1130. Chairman CLINGER as ministratively uncontrollable over- States Code, is amended by— well as Government Management Sub- time; for Senator HOLLINGS, to provide (1) in subparagraph (D) by striking ‘‘and’’ committee Chairman HORN are work- certain death benefits to civilian Gov- after the semicolon; ing hard on the bill and I hope they are (2) by redesignating subparagraph (E) as ernment employees; for myself and subparagraph (F); and able to get it through the House of Senator KERREY, regarding explosive (3) by inserting after subparagraph (D) the Representatives during these busy detection training for canines; for my- following: weeks. self, naming the new courthouse in ‘‘(E) a listing of agencies whose financial Mr. President, I’ll make just a brief Portland, OR; for Senator BROWN, re- management systems do not comply sub- statement on financial management garding Federal financial management stantially with the requirements of the Fed- reform. Several years ago, in an effort improvement. eral Financial Management Improvement to identify excess spending in the Fed- Act of 1996, the period of time that such Mr. KERREY. Mr. President, we have eral budget, I inquired as to overhead reviewed the amendments on this side, agencies have not been in compliance, and a costs in Federal programs. I was ad- summary statement of the efforts underway and we support all of them. to remedy the noncompliance; and’’. vised that the Federal accounting sys- Mr. SHELBY. Mr. President, I ask SEC. ll07. DEFINITIONS. tem makes it impossible to identify unanimous consent that these amend- For purposes of this title: overhead expenses for most Federal op- ments be considered and agreed to, en (1) AGENCY.—The term ‘‘agency’’ means a erations. The Federal Government, it bloc, and that any accompanying state- department or agency of the United States turned out, has over 200 separate pri- ments be placed at the appropriate Government as defined in section 901(b) of mary accounting systems, making it place in the RECORD. title 31, United States Code. impossible to compare something as The PRESIDING OFFICER. Without (2) DIRECTOR.—The term ‘‘Director’’ means basic as overhead costs. the Director of the Office of Management objection, it is so ordered. Worse, many of these systems are The amendments (No. 5249 through and Budget. shamefully inadequate even on their (3) FEDERAL ACCOUNTING STANDARDS.—The 5255), en bloc, were agreed to. term ‘‘Federal accounting standards’’ means own terms. The Internal Revenue Serv- Mr. SHELBY. Mr. President, I move applicable accounting principles, standards, ice offers another disturbing example to reconsider the vote by which the and requirements consistent with section of poor financial management and its amendments were agreed to. 902(a)(3)(A) of title 31, United States Code, consequences. The General Accounting Mr. KERREY. I move to lay that mo- and includes concept statements with re- Office testified before the Govern- tion on the table. spect to the objectives of Federal financial mental Affairs Committee on June 6, The motion to lay on the table was reporting. 1996, that despite years of criticism, agreed to. (4) FINANCIAL MANAGEMENT SYSTEMS.—The ‘‘fundamental, persistent problems re- term ‘‘financial management systems’’ in- Mr. SHELBY. I suggest the absence cludes the financial systems and the finan- main uncorrected’’ at the IRS. For ex- of a quorum. cial portions of mixed systems necessary to ample, the IRS cannot substantiate the Mr. REID. Mr. President, will the support financial management, including amounts reported for specific types of chairman withhold? automated and manual processes, proce- taxes collected, such as Social Security Mr. SHELBY. I am glad to withhold. dures, controls, data, hardware, software, taxes, income taxes, and excise taxes. Mr. REID. I ask unanimous consent and support personnel dedicated to the oper- The IRS cannot even verify a signifi- that the pending amendment be set ation and maintenance of system functions. cant portion of its own nonpayroll op- aside so that I may be allowed to offer (5) FINANCIAL SYSTEM.—The term ‘‘finan- erating expenses, which total $3 billion. cial system’’ includes an information sys- an amendment. tem, comprised of one or more applications, One can hardly resist observing that The PRESIDING OFFICER. Is there that is used for— this is the agency that demands preci- objection? (A) collecting, processing, maintaining, sion from every taxpayer in America. Mr. SHELBY. Reserving the right to transmitting, or reporting data about finan- The IRS is just a small part of a Gov- object, I would like to check with Sen- cial events; ernment so massive and complex that ator KASSEBAUM on her amendment, (B) supporting financial planning or budg- it controls and directs cash resources and also Senator WYDEN, who has been eting activities; of almost $2 trillion per year, issuing conferring with her, before we do that. (C) accumulating and reporting costs infor- 900 million checks and maintaining a Mr. WYDEN. Did the Senator from mation; or (D) supporting the preparation of financial payroll and benefits system for over 5 Alabama ask unanimous consent to lay statements. million Government employees. Clear- aside—— (6) MIXED SYSTEM.—The term ‘‘mixed sys- ly it is imperative that the Govern- Mr. SHELBY. The Senator from Ne- tem’’ means an information system that sup- ment use a uniform and widely accept- vada asked unanimous consent. What September 11, 1996 CONGRESSIONAL RECORD — SENATE S10291 we would like to know is, where are the any FBI employees regarding the Trav- claims against the Federal Govern- Senator and Senator KASSEBAUM on the el Office matter. ment. amendment? Mr. President, I want to say that I As I have indicated, it is made up of Mr. WYDEN. Senator KASSEBAUM and believe that the chairman of this sub- approximately 15 judges. These are re- I are continuing to discuss these mat- committee and the ranking member, ferred to as article 1 judges because ters. I think it is fair to say, in fact, the junior Senators from Alabama and they serve for a time certain, and these that Senator KASSEBAUM indicated Nebraska, have brought a good bill be- people are appointed by the President that she thought it was appropriate to fore this body. There are scores of of the United States for these 15-year go on with further business, and we amendments that have been filed. I terms. They handle primarily contrac- will continue to discuss the matters would bet that a number of them are tual claims, fifth amendment claims, with respect to the gag rule a bit more. not germane. Certainly this one is, and and certain Indian claims. Mr. SHELBY. I have no objection to I felt there is language in this bill that Over the past century, Congress has temporarily setting aside the Kasse- relates to this issue where this bill referred thousands of cases to the baum amendment. would pay, in effect, Mr. Dale’s attor- court. The court reviews these cases The PRESIDING OFFICER. Without neys $500,000, and that this should be under specific statutory authority and objection, it is so ordered. something that should be discussed. procedures set out in claims cases Mr. REID. Mr. President, I will short- This should be an issue that is debated, under the United States. Initially, the ly send the amendment to the desk on and I do that under the recognition case is referred to a chief judge who my behalf and that of Senator LEVIN that I think the two managers of this designates another judge. In fact, they and that of Senator BIDEN. legislation have done a good job. usually have three people that hear Mr. President, we have heard a lot in But let me repeat regarding these at- these cases, and these three judges be- this Chamber about the issue of reim- torney fees that there is no evidence to come the reviewing body. bursing the former employee of the support that Mr. Dale—as Mr. Dale and The bottom line is this panel has the White House Travel Office, Billy Dale, his attorneys did raise—there is noth- most expertise that we have in Amer- for attorney fees. There have been ing to support that there was any ica to handle this kind of case. I think this is something we would hours of talk in this Chamber about wrongdoing in this investigation. I re- want to do to avoid the bitter political that issue. Unfortunately, Mr. Presi- peat: The General Accounting Office acrimony that has taken place on this dent, much of what we have heard has reviewed this matter and determined floor in the past regarding this matter. been based on emotion and not on that the FBI and the IRS did nothing It would seem that we should refer it facts. In fact, there is very little, if wrong regarding the procedures in the to the body separate and apart from any, factual support for this very cost- Travel Office. They were reasonable the policy involved. If in fact this ly expenditure of a $0.5 million— and consistent with the Agencies’ nor- amendment carries, it is up to the $500,000—to reimburse attorneys on the mal procedures and practices. Court of Claims to determine the ex- Billy Dale case. A review by the Office of Professional tent to which Mr. Dale has a legal and The American people, in effect, are Responsibility in the Justice Depart- equitable remedy in this matter and being asked to pay for the attorney ment concluded that there was no whether or not the taxpayers should fees of a person who was lawfully in- wrongdoing on part of any FBI em- pay him money. dicted and legitimately prosecuted. Let ployee regarding the Travel Office mat- Now, I think justice and equity me repeat: The American people are ter, and it is clear that all the people weighs against Mr. Dale, but let the being asked to pay the attorney fees who investigated this case were there Court of Claims determine that. This for a person who was indicted law- long before this administration took amendment is the least we can do for fully—no question about that—and who office. Notwithstanding this, the Amer- the American taxpayer. Half a million was legitimately prosecuted. ican taxpayers have been asked to pay dollars may be pocket change for some Proponents of this taxpayer expendi- almost $0.5 million to Dale’s attorneys. and maybe even Mr. Dale’s attorneys, ture contend that Mr. Dale was wrong- This is clearly a private relief bill. but it is not to the American public. It fully prosecuted. Yet, neither Dale nor If this had been in the form of an is a lot of money to the American pub- these high-powered lawyers who rep- amendment, our rules would have al- lic. resented him—and still represent him— lowed us to raise a point of order, and Facts do not support such a con- ever raised any of this in any proceed- this procedure could have been troversial expenditure on behalf of ing or in any case that was before the knocked out. But in that the commit- someone who has been indicted for em- courts. They didn’t move to dismiss his tee and the subcommittee had, in ef- bezzlement and offered to plead guilty. indictment on the ground of prosecu- fect, amended the House bill, we have Here is what we are being asked to torial misconduct. nothing to raise a point of order on. As do. We are being asked to pay $500,000 In fact, when they filed a motion for a result of that, this is the only alter- in attorney’s fees for someone who ad- acquittal, the court, having heard the native we have. mitted his guilt, basically, according evidence, denied the motion for acquit- We are being asked as a body to to his attorney. Here is what his attor- tal. Why? Because it was the judge’s grant this relief absent any hearing or neys wrote to the U.S. attorney: reasonable assessment that sufficient committee report on this subject. The Mr. Dale will enter a plea of guilty to a evidence existed for a reasonable per- matter should be subject to the ordi- single count of 18 U.S.C. section 654. He will son to find Billy Dale guilty of the nary procedures for private relief bills acknowledge that he intentionally placed charges. provided under Senate rule XIV. Travel Office funds in his personal checking Mr. Dale and his attorneys also failed That is why I am offering this account without authorization. to allege wrongdoing against those who amendment, along with Senators LEVIN Here is what he, Mr. President, has investigated him, and there is no evi- and BIDEN, that comports with the pro- agreed to plead guilty to. dence to support that there was any cedures set out in rule XIV. The This is the statute. wrongdoing by the people who did the amendment that will shortly be offered Whoever, being an officer or employee of investigation. The watchdog of Con- refers the reimbursement of Mr. Dale’s the United States or of any department or gress, the General Accounting Office, attorney fees to the Federal Court of agency thereof, embezzles or wrongly con- reviewed the case and determined that Claims. verts to his own use the money or property the FBI and the IRS action taken dur- Mr. President, the Federal Court of of another which comes into his possession Claims is a body in which the judges or under his control in the execution of such ing the period surrounding the removal office or employment, or under color or of the Travel Office employees were are appointed for a period of 15 years. claim of authority as such officer or em- reasonable and consistent with the This is a body that has been in exist- ployee, shall be fined under this title . . . the Agencies’ normal procedures. ence for over 100 years. It has decided value of the money and property thus embez- Mr. President, a review by the Office exactly the type of issue presented in zled . . . or imprisoned not more than 10 of Professional Responsibility in the the Billy Dale matter on hundreds and years, or both. Justice Department concluded that hundreds of cases. This court has spe- It seems somewhat unique to me that there was no wrongdoing on the part of cial jurisdiction for cases involving someone who, in writing, agreed to S10292 CONGRESSIONAL RECORD — SENATE September 11, 1996 plead guilty, could be sentenced to up el Office employees who had to pay What would the American public to 10 years in prison, fined the amount legal fees should be reimbursed. The think if anytime someone is indicted of money he stole, is now coming be- independent law governs this area. and acquitted that we pay their attor- fore the Congress of the United States That is the best we have. We can talk ney’s fees? Or do we pick and choose and saying pay my attorney’s fees. about it. what attorney’s fees we pay if there is Why? Because he was acquitted. Payment of attorney’s fees is per- an acquittal? We do that legislatively? Mr. President, I am a trial lawyer. mitted if the following two conditions If there is a problem it should be re- Before I came here, I tried a lot of are satisfied. No. 1, the subject in the ferred to the Court of Claims. There is cases. I did criminal work. I believe in investigation would not have been in- statutory procedure in place for deal- our system of justice. The vast major- vestigated but for the independent ing with this. Under 28 U.S.C. 2509, the ity of times trial by jury works out counsel, and No. 2, the person was not Federal claims court determines right. The right decision is not always indicted. Not indicted. Clearly, Mr. whether the private relief sought from reached, but most of the time it is. The Dale would follow under that basis. He U.S. taxpayers is appropriate. vast majority of the time the right de- was indicted and he was lawfully in- We have heard the plaintive cries of cision is reached. A lot of times the dicted. Under independent counsel, the how they were terminated improperly. jury does not arrive at the right result, way the statute reads, there could even Remember, the President had the abil- but they arrive at a result. Sometimes be prosecutorial misconduct when the ity and the legal right to fire the peo- they do not, as we know it appears to indictment takes place and he still ple for no reason. I have acknowledged a lot of us in the O.J. Simpson case or would not be reimbursed for his attor- that they could have been terminated the Menendez brothers. The juries do ney’s fees. In this situation, there is no in a different manner. Procedurally, not always do the right thing, but most question that he was indicted properly, the claims court assumes jurisdiction of the time they do. This is an instance legally. Mr. Dale’s attorneys never of these cases upon referral of either clearly when they did not do the right raised prosecutorial misconduct, never. House of Congress. Upon review, the thing. As we all know, Mr. Dale was in- court must determine whether there is Now, the facts do not support such a dicted. The independent counsel law is a legal or equitable claim to taxpayer controversial expenditure on behalf of explicit about the requirement that at- money or whether such payment would someone who is indicted for embezzle- torney’s fees can be recovered only if be simply a gratuity. Our amendment ment and offered to plead guilty to a the individual was not subject to in- follows precedent and is in compliance felony. dictment. There are no exceptions to with the statute. This issue is not about the firing of this rule. If we are going to establish To many, Billy Dale is the epitome of the Travel Office employees in 1993. new precedent, there at least should be the modern-day victim. The media—re- Most agree that these terminations a foundation for doing so, and the in- member where he worked. He worked were not handled appropriately. But dictment of a person legally is cer- in the White House Travel Office. Mil- everyone also agrees that their dismis- tainly strange grounds to set a prece- lions of dollars went through his hands sals were legal, that the administra- dent for this Congress to start reim- every year. And his job was to make tion, the White House, had a right to bursing people after the jury returns happy the people who travel from the do that within the prerogatives of the an acquittal verdict. White House, but especially the press, law and the office held by the Presi- There have been no Congressional especially the press. He had to make dent. hearings. There is no foundation in the them happy. That was his main func- I repeat, the people who were relieved instant case. There is no committee re- tion. He served them well. He made of duty there were relieved of duty le- port laying out the reasons for break- them happy, and they have done a gally. Whether it was done in an appro- ing long-established precedent. great job of portraying him as victim. priate manner without hurting a lot of Without a lot of politics involved, we In Nevada, Seattle, Cleveland, or any- feelings and kind of roughshod, that is have offered the appropriate response place else, it would not be that way. It something we can all talk about. We to Mr. Dale’s problem. If in fact he has would not be that way. In any city in would all agree it could have been han- been wronged, which I do not think he Nevada, if this were explained to them, dled better. But nothing was done ille- has, but if he has, why is this not re- he would not be a victim. He would be gally. This amendment that will be of- ferred to the appropriate tribunal, somebody who should be prosecuted, as fered is about putting an end to the which would be the Court of Claims? was determined by the Justice Depart- partisan election year games that are We have done it hundreds and thou- ment. now occurring in Congress. Half a mil- sands of times, as I have indicated ear- In addition to his high-priced attor- lion dollars is too high a price to ask of lier. Legislation to pay attorney’s fees ney, Mr. Dale has received public sup- taxpayers, the people of the State of for specific individuals is a form of pri- port from many notable heavyweights Nevada, Ohio, Washington, Kansas, vate relief. Senate rule 14.9 governs the in the media. He took good care of Pennsylvania, Utah, and the rest of the Senate consideration of private relief them. He runs in powerful circles and country. This is about putting an end legislation. has no shortage of influential support- to partisan, election-year games now What we have in this instance is that ers. Today he has become the poster occurring in Congress. I repeat, half a private relief legislation has been fold- boy for every—I should not say for million dollars is too high a price to ed over into this Treasury-Postal Serv- every—for many fundraisers. At many ask the taxpayers to bear for such an ice bill. If this amendment were not Republican fundraisers around the obvious election-year program. raised, the American public would be country, Billy Dale is the poster boy. Those who seek to embarrass this ad- paying half a million dollars. They As it was reported in August in the ministration should not ask the tax- may pay half a million dollars anyway media, candidate Dole had offered him payers to finance their fun and games. if this bill passes and this amendment a job in his Presidential campaign. He If we decide as a body to reimburse Mr. does not carry, but they will know that is still the subject of a plethora of sym- Dale as called for in this legislation a man who agreed to plead guilty to a pathetic pieces in the news by his old now before the Senate, we will be set- felony, a man who was properly in- friends in the media. ting a dangerous precedent. This will dicted—there was never a question of This has all culminated in today’s ef- be the first time in the history of this prosecutorial misconduct ever raised fort to attempt to embarrass the Presi- Congress that we will have paid the at- during the trial proceedings—is going dent by appropriating $500,000 very torney’s fees of a lawfully indicted and to be paid $500,000 in attorney’s fees. I quietly. It is in the bill. There would be prosecuted individual. There is prece- think that sets a very, very dangerous no vote on it. It was just slipped dent to pay the legal fees for the Trav- precedent. In short, it requires, this through here quietly and the American el Office employees who were not in- amendment I will offer, the adoption of taxpayers then would be confronted dicted, and we should do that. No prob- a resolution referring such matter, as I with people saying, ‘‘Yeah, we told you lem with that. There is nothing in have indicated, to the Court of Claims. so. The President has agreed to pay precedent that would prevent the Gov- That is why we have the Court of this money because he was so wrong.’’ ernment from rectifying a wrong. Trav- Claims. He is not so wrong. The Congress of the September 11, 1996 CONGRESSIONAL RECORD — SENATE S10293 United States should not be involved in money up so he could cover foreign graph and Travel Office, with converting to this. It should be referred to the Court trips during October and November. It his own use approximately $54,000 in checks of Claims. is a little difficult in an election year. and $14,000 in cash received by him in con- The real facts according to his indict- They just do not happen. nection with his official duties. ment have yet to be aired, but we are He admitted that there were times in The only reason the $14,000 figure going to talk about those. If such an 1992 that he cashed Travel Office isn’t higher is because records were de- appropriation took place in this bill, checks but did not write them down in stroyed. This is the petty cash fund for under the Federal election laws it his petty cash log, and that anyone only 1 year. It certainly would have should be deemed as an in-kind con- looking for them in the log would not been much higher if those records had tribution to campaigns around the know that he had cashed the checks. been available. country, Republican in nature. He admitted during the trial to put- There are a number of other things in When it comes to Billy Dale, many ting checks that were supposed to go this prosecution memo that I think speak of conspiracies. But it is the con- into the Travel Office surplus fund ac- call out for comment when Congress is spiracy of silence that I would like to count at the Riggs Bank into his own being asked to respond to half a mil- speak about a little bit today. The si- personal account. This is what I have lion dollars: lence over the activities that led to Mr. talked about. One was a block away, No legitimate explanation for these Dale’s indictment is deafening. All we the other was at his home. deposits. It talks about the missing He admitted during the trial that he seem to hear about is poor Billy Dale. cash in addition to the missing checks. did not even tell the individual who However there is reason why the man There were numerous checks cashed, worked with him in the Travel Office was indicted, and let us not forget that unreconciled estimated bills and large for 30 years, his chief assistant, Gary Mr. Dale agreed—I repeat—to plead fluctuations in the bank balances. This Wright, of this practice of putting guilty to embezzlement. Mr. Dale is, in is from the prosecution memo. these checks into his own account and my opinion, an admitted crook. He is A decision was made to inform the Travel not the office account. No one knew ex- today asking the American taxpayer to Office employees that the examination was cept him. It was a secret. Why? Be- being conducted as part of the National Per- pick up his legal bill. cause he was stealing the money. He He has every right to do this, but let formance Review. RECORDs were in a sham- admitted to cashing one check for bles. us do it in the Court of Claims. He has $5,000, writing down only $2,000 for that waived, in my opinion, every right of Thirteen checks made out to cash for check in the petty cash log. When he confidentiality, with his campaign by which there was little or no docu- was first contacted by the investiga- his attorneys and him to be reimbursed mentation established how the cash tors about that he was silent. They for attorney’s fees, regarding the facts was spent. There was a questionable talked to him again: Silent. Suddenly, supporting his prosecution. If the transaction involving a $5,000 check to after having run to his credit union American public is going to pay cash. Further, he had no explanation of and borrowing enough money to cover $500,000 to a high-priced Washington the discrepancy—this is the $5,000 this, he brought the money back and law firm, they should know the whole check—but that he later found the said, ‘‘I had it in my desk drawer.’’ Of story. So let us talk a little bit about money in his desk. The report found a course he did not have it in his desk the whole story. Let us talk about lack of financial controls and account- drawer. some of the things that he testified to ing systems. We know that. Dale admitted that he overcharged Most importantly, the report found at his trial. for some of the flights and under- He testified to a number of things. He discrepancies with the petty cash fund, charged for others, instead of just which he controlled. admitted putting 55 checks for Travel charging exactly what the trip cost. Office funds totaling some $54,000 in his Also, they indicate that this cer- Then he offered some incomprehensible tainly was no kind of a witch hunt. personal bank account. Mr. President, explanation to the investigators, why if we want to get into more detailed They also, Mr. President, came to the that was beneficial. conclusion: facts, and we can do that, we will find There are many other things that he that he was very careful in the checks admitted during the trial, but the fact We found no evidence of illegal conduct by any other member of the Travel Office. The that he put in his personal bank ac- of the matter is we are being asked count. He basically put in checks that media checks selected by Dale for deposit here to reimburse attorney’s fees of into his account were not from mainstream would be very, very difficult to trace. $500,000 for Billy Dale, his attorneys, so press organizations, but rather English, Jap- What checks did he put in his personal he can carry on this campaign of har- anese, German and Hispanic media. Dale’s bank account? Checks that came from assment that he has been engaged in in selection of these checks is significant. The foreign news outlets, from Mexico, the past 6 months or year. refund checks invariably were generated by from places in Europe, from Asia. He We can look at a prosecution memo. the vendors on their own. They arrived unex- was very careful. He did not put into Before cases are brought in Federal pectedly, and their absence would not be his personal bank account checks from court—you have heard the expression, missed. Similarly, the checks from these es- CBS, ABC, and other American media oteric news services were less likely to be ‘‘What are they trying to do, make a scrutinized by these services when returned outlets. He took into his personal Federal case out of it?’’ That, Mr. by their bank, and those organizations would checking account checks that could President, comes with very good rea- be less likely to understand the meaning of not be traced. son, because in the federal system, and Dale’s name on the deposits and not the He also had a number of explanations the Presiding Officer knows, having Travel Office. why he did this. It was more conven- been an Attorney General, as most peo- Because he wrote on them ‘‘For de- ient—that is a real laugher—more con- ple, that Federal cases are developed posit only to Billy R. Dale.’’ venient. The bank that held the checks under very detailed circumstances. Al- We could find no legitimate reason for legally for the Travel Office was about most every time a case is filed that re- these checks to be deposited in Dale’s per- a block from the White House where he sults in indictment, a prosecution sonal bank account. It certainly was not worked. His personal bank was miles memo is prepared. A prosecution memo easier— away, out in Maryland someplace. was prepared in this case. Still quoting from this memo: He admitted during the trial, admit- I will read just a little bit from the It certainly was not easier for Dale to have ted cashing refund checks to the Travel prosecution memo: taken checks to home, to Maryland, rather Office received from telephone compa- The FBI has investigated this matter and than walk across the street. Indeed, on four nies for trips where the press had been strongly supports these charges. occasions, Travel Office checks were depos- overcharged. That is in the first paragraph. I re- ited by Dale in his account on the same day He admitted that by not putting the peat: deposits were made to the Travel Office ac- refund checks in the Travel Office bank The FBI has investigated this matter and count at Riggs. account he was breaching an obligation strongly supports these charges. There is certainly no evidence at all he had to apply any surplus in that ac- What are these charges? that Dale ever used any of these mon- count toward the very next trip. He We propose to charge Billy Ray Dale, the eys from his personal account to pay even got into—he was storing this former director of the White House Tele- Travel Office expenses. Then why S10294 CONGRESSIONAL RECORD — SENATE September 11, 1996 would he put it in there? He would put This is a private relief claim at best United States Court of Federal Claims, is de- it in there so he could use the money. and should be referred to the Court of termined by the chief judge to be a legal or Then, of course, they do a minimal Claims. It has been turned into a polit- equitable claim, as provided in paragraph (2). accounting to find out what would hap- ical matter and should be removed (2) The chief judge shall— (A) proceed according to the provisions of pen if he spent this money and where from the political arena. Claims court sections 1492 and 2509 of title 28, United he spent it. They did that and arrived is the proper forum for deciding wheth- States Code; and at the conclusion he had to take the er Mr. Dale’s attorneys are entitled to (B) report back to the Senate, at the earli- money and use it on his own: homes receive taxpayer compensation; other- est practicable date, providing— purchased, children getting money. wise, we are breaking well-established (i) such findings of fact and conclusions These are not my words. This is from precedent for purely political purposes. that are sufficient to inform the Congress of the Justice Department: In doing so, we would create a tremen- the nature, extent, and character of the claim for compensation referred to in this The evidence indicates that Dale stole the dously dangerous precedent in this section as a legal or equitable claim against missing $14,000 in cash. He cannot claim body. the United States or a gratuity; and credibly that he used relatively large We cannot make a mistake about it. (ii) the amount, if any, legally or equitably amounts of unused checks to pay trip ex- This reimbursement is for Presidential due from the United States to any individual penses during the period. He offered no ex- politics. Mr. Dale runs in high circles referred to in this section. planation for the misrecording. now and has become the poster boy for Mr. HATCH addressed the Chair. Dale was asked three times about the every Republican—I should not say The PRESIDING OFFICER. The Sen- $5,000 check, and he finally said on the ‘‘every’’—for many political fund- ator from Utah. third occasion: raisers held by the Republicans. He was Mr. HATCH. Mr. President, I send an He now had an explanation for the missing offered a job by Presidential candidate amendment to the desk and ask for its money. Dale went to his desk and produced Dole, as reported in the press. And an envelope containing $2,800 in cash, enough immediate consideration. to make up the difference, which he told the there are a few $1,000 fundraisers at The PRESIDING OFFICER. Does the investigator this corresponded to a portion which he appears. amendment relate to the amendment of the missing money. Dale told the inves- Any appropriations should be consid- of the Senator from Nevada? tigator that he had set the $3,000 aside for an ered an in-kind contribution to the Re- Mr. HATCH. It does. upcoming trip to Indonesia because he some- publican Presidential campaign. The The PRESIDING OFFICER. The times had to pay kickbacks when he traveled record we have laid out today evi- clerk will report. to that part of the world. dences the need to remove this matter Mr. REID. Mr. President, could I Dale’s explanation, of course, is not from this body and to take it to the make a parliamentary inquiry? credible. There is no reason why this Court of Claims where appropriate con- The PRESIDING OFFICER. State cash would not have been used for an- sideration can be given. At a minimum, your parliamentary inquiry. other trip. So his explanation is with- don’t the taxpayers at least deserve Mr. REID. Is there a second-degree out any foundation whatsoever. this? What kind of a precedent would amendment pending to the amendment His explanation about needing this we set by including, in an appropria- offered by the Senators from Michigan money in Indonesia is inconsistent tions bill, a payment for somebody’s and Nevada? with the travel records for that period. attorney’s fees who was rightfully in- The PRESIDING OFFICER. The The $5,000 check was cashed in October dicted and was acquitted by a jury, Chair is attempting to make that de- of 1992. He made no international trips which happens in our system? termination. from January 10, 1992, until he left the Mr. Dale’s attorneys down on K Mr. REID. Mr. President, I was only office in May of 1993. The question is Street, or wherever they are, I do not curious. Something was sent to the asked, why wasn’t he convicted? We all think will go hungry awaiting this de- desk. ask that question. cision. It is the right thing to do. The The PRESIDING OFFICER. The Sen- I am not going to impugn the ability amendment that is going to be offered ator from Nevada has in fact sent, not of the prosecutors, but it must have says that he should be reimbursed if one, but two amendments to the desk been a busy week. I don’t think they the Court of Claims determines Dale at the same time. It would take unani- were very well prepared for this case. has a legal or equitable claim. mous consent to consider the two Acquittals come, as we all know. AMENDMENT NO. 5256 amendments as a single amendment. Sometimes they shouldn’t come. So, in (Purpose: To refer the White House travel Mr. HATCH. I suggest the absence of finality, the prosecution memo says: office matter to the Court of Federal Claims) a quorum. We propose to charge Dale with two counts Mr. REID. Mr. President, I send an The PRESIDING OFFICER. The of conversion under United States Code 654. amendment to the desk on my behalf clerk will call the roll. So, Mr. President, there is more here and that of Senator LEVIN and Senator The bill clerk proceeded to call the to this than we have heard in the past. BIDEN. roll. For example, we have referred to his The PRESIDING OFFICER (Mr. GOR- Mr. REID. Mr. President, I ask unan- plea agreement. November 30, 1994, I TON). The clerk will report. imous consent that the order for the am reading directly from his letter: The bill clerk read as follows: quorum call be rescinded. Mr. Dale will enter a plea of guilty to a The Senator from Nevada [Mr. REID], for The PRESIDING OFFICER. Without single count of 18 U.S. Code 654. He will ac- himself, Mr. LEVIN and Mr. BIDEN, proposes objection, it is so ordered. knowledge he intentionally placed Travel Of- an amendment numbered 5256. AMENDMENT NO. 5256, AS MODIFIED fice funds in his personal checking account Mr. REID. Mr. President, I ask unan- without authorization. Mr. REID. Mr. President, I ask unan- imous consent that further reading of It goes on to explain what he would imous consent that the amendment of- the amendment be dispensed with. like in the way of a sentence. fered by the Senators from Nevada, The PRESIDING OFFICER. Without I believe the facts simply do not sup- Michigan and Delaware be modified to objection, it is so ordered. port a half-million-dollar payment to strike lines 1 and 2 of the amendment. The amendment is as follows: Dale’s attorneys. It is clear that the The PRESIDING OFFICER. Without On page 91, line 3, strike ‘‘The’’ and insert objection, it is so ordered. Justice Department had probable cause ‘‘Except as provided in subsection (f), the’’. to indict and prosecute Billy Dale. It is On page 92, between lines 21 and 22, add the The amendment (No. 5256), as modi- important to keep in mind who it was following: fied, is as follows: who made this determination—career (f)(1) Any former employee of the White On page 92, between lines 21 and 22, add the service attorneys at the Department of House Travel Office whose employment in following: Justice. The White House had nothing that office was terminated on May 19, 1993, (f)(1) Any former employee of the White to do with this. Likely—not likely; no and who was subject to criminal indictment House Travel Office whose employment in for conduct in connection with such employ- that office was terminated on May 19, 1993, question about it—that people doing ment, shall be reimbursed for attorney fees and who was subject to criminal indictment this were holdovers from the Bush and and costs under this section but only if the for conduct in connection with such employ- Reagan administrations, professional claim for such attorney fees and costs, which ment, shall be reimbursed for attorney fees prosecutors. shall be referred to the chief judge of the and costs under this section but only if the September 11, 1996 CONGRESSIONAL RECORD — SENATE S10295 claim for such attorney fees and costs, which background investigation report on any indi- cludes a provision to pay attorney’s shall be referred to the chief judge of the vidual, except when it is made known to the fees for the employees of the White United States Court of Federal Claims, is de- Federal official having authority to obligate House Travel Office who were dis- termined by the chief judge to be a legal or or expend such funds that— missed from their jobs in 1993. This equitable claim, as provided in paragraph (2). (1) such individual has given his or her ex- (2) The chief judge shall— press written consent for such request not provision is similar to Senate bill 1561 (A) proceed according to the provisions of more than 6 months prior to the date of such sponsored by Senator HATCH earlier sections 1492 and 2509 of title 28, United request and during the same presidential ad- this year and to House bill 2937. States Code; and ministration; or The provision would direct the Sec- (B) report back to the Senate, at the earli- (2) such request is required due to extraor- retary of the Treasury to pay up to est practicable date, providing— dinary circumstances involving national se- $500,000 of taxpayers’ money to six (i) such findings of fact and conclusions curity. former Travel Office employees; $50,000 that are sufficient to inform the Congress of SEC. 528. (a) REIMBURSEMENT OF CERTAIN of that amount would go to five of the the nature, extent, and character of the ATTORNEY FEES AND COSTS.— claim for compensation referred to in this (1) IN GENERAL.—The Secretary of the employees who were already partially section as a legal or equitable claim against Treasury shall pay from amounts appro- reimbursed by last year’s appropria- the United States or a gratuity; and priated in title I of this Act under the head- tions bill. The rest, or about $450,000, (ii) the amount, if any, legally or equitably ing, ‘‘Departmental Offices, Salaries and Ex- would go to reimburse former Travel due from the United States to any individual penses’’, up to $499,999 to reimburse former Office Director Billy Dale’s attorney referred to in this section. employees of the White House Travel Office fees. AMENDMENT NO. 5257 TO AMENDMENT NO. 5256 whose employment in that Office was termi- Unlike the other Travel Office em- nated on May 19, 1993, for any attorney fees (Purpose: To reimburse the victims of the ployees, Billy Dale was subject to a and costs they incurred with respect to that Travel Office firing and investigation) termination. Federal indictment and prosecution for The PRESIDING OFFICER. The embezzlement and conversion. It is clerk will report the second-degree Mr. SHELBY. Mr. President, it is that indictment and prosecution for amendment. moving on in the day and Senator embezzlement and conversion which is The assistant legislative clerk read KERREY and I have talked to a number the source of the attorney fees. I want as follows: of Members about any votes requested to repeat that because that is the criti- tonight. We will try to stack them to- The Senator from Utah [Mr. HATCH] pro- cal issue that is before the Senate: It is morrow. He has no disagreement with poses an amendment numbered 5257. the attorney fees that related to the that. FBI indictment and prosecution for Mr. HATCH. I ask unanimous consent I yield to him for any comments. embezzlement and conversion that is that reading of the amendment be dis- Mr. KERREY. We have not had a dis- the source of the attorney fees that is pensed with. cussion with the leadership about this. in this bill. The provision, though, in The PRESIDING OFFICER. Without We have lots of people who would like this bill, lumps together both the objection, it is so ordered. to bring amendments down. unindicted and the indicted Travel Of- The amendment is as follows: Mr. SHELBY. Subject to the ap- fice employees. That is the mistake Strike all after the first word and insert proval of both leaders? which should be remedied. the following: Mr. KERREY. We will try to get in (2) VERIFICATION REQUIRED.—The Secretary We know that the White House staff touch with the leadership and see if we shall pay an individual in full under para- acted inappropriately when they sum- can work that out. graph (1) upon submission by the individual marily fired all the Travel Office em- Mr. SHELBY. I yield the floor. of documentation verifying the attorney fees ployees in May 1993. The White House THE PRESIDING OFFICER. The Pre- and costs. acknowledged that in their July 1993 (3) NO INFERENCE OF LIABILITY.—Liability siding Officer, in his capacity as the management review when it said—this of the United States shall not be inferred Senator from Washington, suggests the is the White House speaking—that the from enactment of or payment under this absence of a quorum. White House erred in not treating the subsection. The clerk will call the roll. (b) LIMITATION ON FILING OF CLAIMS.—The Travel Office employees with more sen- The bill clerk proceeded to call the Secretary of the Treasury shall not pay any sitivity. We also know that the White roll. claim filed under this section that is filed House staff erred in that conduct with later than 120 days after the date of the en- Mr. SHELBY. Mr. President, I ask unanimous consent that the order for respect to the FBI. They took actions actment of this Act. which they should not have, which had (c) LIMITATION.—Payments under sub- the quorum call be rescinded. the appearance of trying to influence section (a) shall not include attorney fees or The PRESIDING OFFICER (Mr. JEF- the FBI. The White House acknowl- costs incurred with respect to any Congres- FORDS). Without objection, it is so or- sional hearing or investigation into the ter- dered. edged that in their 1993 management mination of employment of the former em- review when that review said, ‘‘The AMENDMENT NO. 5208, AS MODIFIED ployees of the White House Travel Office. White House erred in not being suffi- (d) REDUCTION.—The amount paid pursuant Mr. SHELBY. I ask unanimous con- ciently vigilant in guarding against to this section to an individual for attorney sent that amendment 5208, which was even the appearance of pressure on the fees and costs described in subsection (a) previously agreed to, be modified with FBI.’’ shall be reduced by any amount received be- the changes I now send to the desk, fore the date of the enactment of this Act, The White House, by its own ac- and, further, that the modifications be knowledgment, was wrong when it al- without obligation for repayment by the in- considered agreed to. dividual, for payment of such attorney fees lowed people with personal financial and costs (including any amount received The PRESIDING OFFICER. Without interest in the Travel Office to be in- from the funds appropriated for the individ- objection, it is so ordered. volved in the work of the office and in ual in the matter relating to the ‘‘Office of The amendment (No. 5208), as modi- evaluating the office. The White House the General Counsel’’ under the heading ‘‘Of- fied, is as follows: management report acknowledged this, At the end of the committee amendment, fice of the Secretary’’ in title I of the De- as well, when it said, ‘‘The White partment of Transportation and Related insert the following: Agencies Appropriations Act, 1994). ‘‘No adjustment for: House erred in permitting people with (e) PAYMENT IN FULL SETTLEMENT OF ‘‘(1) members of Congress under section personal interests in the outcome to be CLAIMS AGAINST THE UNITED STATES.—Pay- 601(a) of the Legislative Reorganization Act involved in evaluating the Travel Of- ment under this section, when accepted by of 1946, and fice.’’ an individual described in subsection (a), ‘‘(2) members of the President’s Cabinet (as Now, it is because of those errors, shall be in full satisfaction of all claims of, defined in 5 U.S.C. section 5312) under section those facts, on the part of the White or on behalf of, the individual against the 5318 of Title 5, U.S. Code, House relative to the firing of those United States that arose out of the termi- shall be considered to have taken effect in employees that the Congress agreed to nation of the White House Travel Office em- fiscal year 1997.’’. pay the attorney fees of former Travel ployment of that individual on May 19, 1993. Mr. SHELBY. I yield the floor. SEC. 529. None of the funds made available Office employees who were fired, who in this Act may be used by the Executive Of- AMENDMENT NO. 5256, AS MODIFIED should not have been fired, who were fice of the President to request from the Fed- Mr. LEVIN. Mr. President, the appro- improperly filed. We appropriated eral Bureau of Investigation any official priations bill before the Senate in- $150,000 in last year’s appropriation for S10296 CONGRESSIONAL RECORD — SENATE September 11, 1996 the Department of Transportation, and the independent counsel law if they rule 12—‘‘or based on defects in the in- we will complete that course of action met a two-part test. First, they had to dictment,’’ and again I am quoting rule with the remaining $50,000 with this ap- show that they would not have in- 12. Those motions are made in hun- propriations bill. curred the attorney fees but for the dreds—probably thousands—of cases. I do not have any argument with independent counsel statute, and, sec- Outside of rule 12, courts may also that. Quite the opposite. I think it was ond, they were not eligible if they were recognize challenges to a prosecution the right thing to do. We ought to pay indicted. or an indictment based on lack of due those attorney fees relative to the fir- No one at the time, or since, has ever process. The court may dismiss an in- ing of those employees. mentioned, much less considered, the dictment as an exercise of its inherent However, $450,000 of the money in possibility of paying attorney fees for supervisory authority to protect a de- this bill would go for something far dif- an indicted individual. Now, when Con- fendant’s due process. ferent than paying attorney fees for gress took the first step last year of These are long-recognized defenses to employees who everybody has already paying the attorney fees of the fired improper criminal prosecutions. Those acknowledged should not have been White House Travel Office employees defenses, though, are supposed to be fire—$450,000 of the taxpayers’ money by including $150,000 in the Department raised in the judicial process and, in in this bill will go to pay the attorney of Transportation appropriations bill, most cases, prior to trial. Rule 12 ex- fees that Billy Dale incurred in his de- that legislation explicitly limited pay- plicitly requires that any claim of de- fense against a criminal indictment. ment of that money to reimburse at- fect in the institution of the prosecu- That $450,000 was not incurred because torney fees only of White House Travel tion, or the indictment, must be made Dale was wrongly fired. It was incurred Office employees who ‘‘were not the prior to trial. Extensive case law sup- because a proper FBI investigation and subject of the FBI investigation.’’ That ports the requirement with the result a proper Department of Justice review is why it was passed so easily by a that any claim not raised prior to trial found substantial evidence of embezzle- voice vote. It coincided with the inde- is deemed waived. So there is a clear ment and conversion on the part of pendent counsel standard. But the leg- and appropriate way for a defendant in Billy Dale. islation before us would violate that a criminal case to challenge the fair- It was not the wrongful firing which standard. If we are going to do that, we ness or the propriety of a prosecution. relates to these $450,000 in bills for at- better have some criteria for the prece- As far as I can tell, Billy Dale did not torneys. It is because Billy Dale was dent that we are setting. raise any of these challenges during indicted. He was indicted following a The reason that we have made an in- the course of his prosecution. The proper FBI investigation. He was in- dictment the threshold beyond which court docket for Billy Dale’s case does dicted following a proper Department there is to be no reimbursement for at- not show any motion to dismiss be- of Justice review which found substan- torney fees is because an indictment cause of alleged defects in the indict- tial evidence of embezzlement and con- requires a determination that there be ment, or because of alleged Govern- version on his part. probable cause that the person subject ment misconduct, or because of a claim Now, as best as I can determine, if we to the indictment committed a crime. of lack of due process; nor does the pass this legislation as currently draft- The grand jury is comprised of average docket show that Billy Dale made any ed, it will be the first time in our his- citizens who make a determination as of those claims during the course of his tory that we have passed legislation to to whether or not there is probable trial. If he had these claims, he should pay attorney fees incurred by someone cause to go forward with an indictment have raised them at the trial. Had he who has been, from all appearances, and a trial. It is a system that we use been convicted and appealed the con- lawfully indicted. thousands of times a year, if not a day, viction, he would have been precluded Now, maybe there is another case; across this country. In order to be in- from raising them on appeal, because if maybe there is another instance where dicted, a prosecutor must present evi- the claims haven’t been made before someone who was—I emphasize this— dence to a grand jury to show probable trial, then the defendant will be treat- lawfully indicted following a proper in- cause that a crime was committed and ed as having waived those defenses. vestigation by the FBI, and following a that a specific person is the one who Now, in support of this legislation, proper review by the Department of committed the crime. Senator HATCH has claimed that Dale’s Justice. Maybe there is another in- Whether or not the indicted person is indictment and prosecution were a stance, but we can’t find it. eventually acquitted does not take ‘‘grave miscarriage of justice,’’ and So what is in this bill is precedent- away from the fact that there was that Dale was ‘‘wrongfully pros- setting. There is not an adequate foun- probable cause to believe that the per- ecuted.’’ Well, if Billy Dale had those dation to set this precedent. The only son had committed a crime. Acquittal claims at the time of his trial, he had law that allows for the payment of at- doesn’t mean that the indictment the opportunity and the legal obliga- torney fees incurred because of a crimi- never should have been brought. It tion to raise them at trial. If he did not nal investigation is the independent means that the judge or jury did not raise those claims there, then unless counsel law. That law explicitly pro- believe there was proof beyond a rea- there are compelling reasons, we hibits individuals from recovering sonable doubt that the indicted indi- should be particularly careful in con- their attorney fees if they have been vidual was guilty. We have almost a sidering them here under this very rare indicted. thousand acquittals a year in this and unusual process of private relief Now, while the attorney fees at issue country in the Federal system alone, legislation. here don’t involve the independent and I suspect a reasonable number of If the answer is that Billy Dale has counsel law, it is the only standard those involve relatively short jury de- one of these claims, but did not raise it that we have on the books where the liberations, like the Billy Dale case. at the appropriate time, then we need situation is comparable, so that it is There is nothing unusual or suspect an explanation as to why he did not reasonable that it would serve as our about such acquittals. That is the way raise it in the appropriate form at the guide. Ten years ago, when we reau- the criminal process works. appropriate time. There may be a le- thorized the independent counsel law But what if an indictment had been gitimate reason, and we should hear for the first time, we concluded that improperly obtained? If that is the that. But, so far, there is nothing on the independent counsel statute may case, that the indictment was tainted the record to that effect. create inequitable situations, where or obtained improperly, the defendant Without a compelling reason to jus- persons who would otherwise not be in- can seek to have it thrown out before tify Dale’s failure to make his case volved in a criminal investigation or during trial. Rule 12 of the Federal about a wrongful prosecution while at could incur sizable attorney fees solely Rules of Criminal Procedure provides trial, we would be overthrowing long- because of the independent counsel for a defendant to make a number of standing and critically important law. pretrial motions, ‘‘including any de- precedent in criminal procedure and in We decided, therefore, to allow for fense or objection to the prosecution, our handling of private relief bills were the reimbursement of attorney fees for based on defects in the institution of we to act at this time. We would be persons subject to investigation under the prosecution’’—there I am quoting saying to hundreds, perhaps thousands, September 11, 1996 CONGRESSIONAL RECORD — SENATE S10297 of defendants, that although they There is nothing in the House report, an improper manner. There is no evi- failed to make a timely motion chal- which is the only report we have, that dence that the decision to prosecute a lenging the legitimacy of the private says that the FBI investigation was decision made by career attorneys at prosecution brought against them, tainted, or wrong, or defective, or im- the Justice Department was improper. they can still come to Congress and we proper. There is nothing in that House That allegation has not been made. It will consider paying their legal fees, report which says that the Department is not in the House report. I do not even though they would be forbidden of Justice prosecution was tainted, or think it would be sustainable if some- from challenging the legitimacy of the defective, or improper. one made it. There is no evidence that prosecution were the case on appeal That is what these legal fees relate the indictment by the grand jury was from a conviction. to. We are paying the legal fees for the improper. There is no evidence that the But let’s assume there was a legiti- firing. And we ought to. They were criminal trial conducted by a well-re- mate reason for Dale to have failed to done inappropriately. That has been spected judge, whom Dale himself raise this claim of wrongful prosecu- acknowledged for years. We paid lauded as being fair, was in any way tion at the trial. If that were true, then $150,000 last year in the appropriations improper. In fact, Dale was asked at a we could be in a position to consider bill. And this appropriations bill appro- hearing on the House side before the the substance of the claim. But, surely, priates an additional $50,000, and we Committee on Government Reform and before we pay his attorney fees out of ought to pay it. It is the $450,000 for the Oversight in January of this year by taxpayer money, we ought to deter- defense against an indictment which Congressman KANJORSKI whether Dale mine that the prosecution was im- was properly brought which is the issue was ‘‘suggesting in any way that either proper. here and which would set a precedent. those attorneys in the Justice Depart- As the record now stands, I don’t see We have never paid the legal fees of ment, the people in the grand jury, the evidence to support such a claim. We someone who was properly and legally judge that tried the case, or the people don’t have a Senate hearing record, or indicted. If we open up that door, we that made up the jury were in some even a Senate committee report on this would have thousands of folks out way compromised?’’ That was the legislation, because there aren’t any. there who are acquitted, and many of exact question. Billy Dale responded, The only record we have upon which we whom are acquitted in just as short a ‘‘Absolutely not.’’ On May 28, 1993, the FBI released a are supposed to judge this matter is time, who will have an equal claim. the House committee report that ac- That is the issue. Whether or not we report of its internal review of its con- companies the bill. ought to have the Court of Claims say tacts with the White House on the Mr. President, I have read the House that there was something inappropri- Travel Office. The FBI Director con- committee report. I do not find any- ate here before this money is paid, that cluded that ‘‘The FBI acted correctly’’. thing in that report to justify a finding is what this amendment does. It does He said that ‘‘FBI personnel declined to offer guidance, restricted their in- that either the FBI investigation or not say strike the money. It says refer terest to the parameters of a possible Department of Justice prosecution of this to the Court of Claims to see if criminal investigation and did not Billy Dale was improper. What I have there is an equitable claim. And if commit to conducting a criminal in- found is this: White House staff did a there is, pay it. poor job in responding to evidence of fi- Mr. President, it was not the White vestigation until after consultation nancial mismanagement in the White House which carried out the criminal with appropriate personnel within the House Travel Office, did a poor job of investigation which led to the indict- FBI and Department of Justice.’’ The GAO looked into the handling of handling long-time White House Travel ment of Billy Dale. It was the FBI. Has the White House Travel Office. In its Office employees, and the White House anyone said that investigation by the report in May of 1994 it stated, ‘‘FBI summarily fired all the Travel Office FBI was inappropriate, or tainted? Not interactions with Associate Counsel employees before all the facts were that I have heard; not in the House Kennedy and White House press offi- known. The White House itself ac- committee report, which is the only re- cials occurred in a mode of urgency but knowledged these errors back in 1993. port we have on it. The White House GAO found no evidence that the FBI There is nothing new about those find- did not review the evidence obtained by took inappropriate action as a result of ings. In July 1993, the error was ac- the FBI and determine that it should those conditions.’’ knowledged by the White House in the be presented to a grand jury for pos- The GAO went on to say that it found firing of Travel Office employees. sible indictment. That was the Depart- that the FBI actions ‘‘during the pe- What else have we found? It was ment of Justice. It was not the White riod surrounding the removal of the found before, but the White House con- House that reviewed the FBI investiga- Travel Office employees were reason- veyed a heightened sense of urgency tion and said, ‘‘Hey, we are going to in- able and consistent with the agency’s about the allegations involving the dict this person.’’ The Department of normal procedures.’’ Travel Office to the FBI and coordi- Justice made that decision. I have not The Office of Professional Respon- nated a press release with the FBI heard anyone say that the Department sibility in the Department of Justice which created the appearance of pres- of Justice concluded that it should also reviewed the conduct of the FBI in suring the FBI. The White House ac- seek an indictment of Billy Dale which this matter, and in its report, dated knowledged that error back in July was tainted, or defective, or inappro- March 18, 1994, said the following: 1993. priate, or improper. That is not in the ‘‘Based on our inquiry, we have con- Those White House errors do not House report, the only report we have. cluded that the FBI acted properly mean that the investigation by the FBI The White House did not hear the throughout its dealings with the White or the prosecution by the Department evidence and determine that there was House regarding the Travel Office mat- of Justice were improper. That is the probable cause to believe that Billy ter.’’ heart of the matter. Errors in the fir- Dale had embezzled $54,000 from the Providing more detail, the report ing, yes. They have been acknowledged White House Travel Office. That was went on to say, ‘‘As noted, we found no for years. But the prosecution of Billy the grand jury, and the White House wrongdoing on the part of any FBI em- Dale, the investigation by the FBI, the did not try this case and determine ployees regarding the Travel Office prosecution by the Department of Jus- that there was sufficient evidence to matter, but the various FBI agents tice—were they defective? There is not sustain a conviction. That was the who had direct contact with White even an allegation of that. That is judge. The judge did that. The judge House Associate William Kennedy have what these legal fees relate to. They do heard this evidence and decided that different recollections of their con- not relate to the firing. We are paying there was sufficient evidence to sustain versations with him. All agreed that those legal fees. They relate to the de- a conviction of Billy Dale and let this they did not interpret Kennedy’s state- fense of a criminal indictment which case go to the jury and denied a motion ments as threats or attempts by him to was properly brought following a prop- for directed verdict. pressure them to respond to the factual er FBI investigation, following a prop- There is no evidence, there is no alle- situation in an inappropriate manner, er Department of Justice prosecution gation, that the Federal Bureau of In- or in any way inconsistent with normal that no one has said was improper. vestigation pursued its investigation in procedures.’’ S10298 CONGRESSIONAL RECORD — SENATE September 11, 1996 I am continuing to quote. ‘‘And the lowing proper prosecution, not tainted, fice. They were supposed to work as record makes clear that the agents who not alleged to be tainted, either at follows: The petty cash account would had direct contact at the White House, trial or in the House report or as far as be replenished by cashing checks at the as well as their superiors at FBI head- I know here. What was improper was Riggs Bank where the main account for quarters, followed normal procedures the firing. But the indictment was the office was maintained, recording in responding to the Travel Office mat- proper, too, and I am going to spend a the number of the check and the ter.’’ few minutes as to what that evidence amount cashed in a petty cash log. The The Office of Professional Respon- was that led the FBI and the Depart- Travel Office employees were supposed sibility goes on to say that ‘‘ill-advised ment of Justice to seek an indictment to use either the Riggs Bank account, and erroneous’’ action by White House and to prosecute Billy Dale. which was several blocks away, that is staff during this time—‘‘ill-advised and This indictment was based on a find- all, from the White House, or the petty erroneous’’ action by White House staff ing of probable cause that a named in- cash account, which was in the Travel during this time; everyone concedes dividual committed a crime. Billy Dale Office, to cover the expenses while that. But the Office of Professional Re- was in charge of the White House Trav- traveling with the White House press sponsibility said, ‘‘—created the ap- el Office. He served as its head for 11 corps. pearance that the FBI was being used years, had been in the office for 32 In May 1993, the White House coun- by the White House for political pur- years. There were six other employees sel’s office requested Peat Marwick, a poses’’ but concluded that the problem in the Travel Office who worked under private accounting firm, to conduct a was one of appearance and not sub- Billy Dale. None of these employees, review of the financial records of the stance with regard to the FBI. including Billy Dale, was a member of Travel Office. That review found, ac- The House committee report lays out the civil service. All the employees, in- cording to the summary, ‘‘significant a summary of the facts in this case, a cluding Billy Dale, served at the pleas- accounting system weaknesses, includ- summary with which I do not have ure of the President and could be fired ing missing or inadequate documenta- much dispute, but in reaching its con- at will. tion for disbursements, a lack of finan- clusion it, like the legislation, makes The job of the White House Travel cial control consciousness, no formal no distinction between former Travel Office is to accommodate the White financial reporting process, no rec- Office employees who were not indicted House press corps by arranging for onciliations of financial information, and Billy Dale who was indicted. That their transportation and housing while no documented system of checks and is the distinction which this appropria- on travel to cover the President. Al- balances on transactions and account- tions bill does not make either. It is though the Federal employees in the ing decisions within the office, no gen- the critical distinction because there Travel Office are paid for at taxpayer eral ledger of cash receipts, disburse- has been concession, there has been ac- expense, the payment for the travel, ment journals, no copies of bills on knowledgement, there has been aware- the airplane, taxi, train, hotel costs are file.’’ ness for years that errors were made by paid for by the respective news organi- Now, in particular, Peat Marwick the White House in the firing of those zations. The moneys for travel are fun- noted about ‘‘eight discrepancies be- people and the attorney’s fees have neled through the White House Travel tween the amounts written to cash on been paid, and they have been paid ex- Office, so while the White House Travel the Riggs National Bank account and cept for $50,000, in this bill, properly. Office employees will make the ar- the recording of these amounts into But there is another case, there is rangements for the airplane charter the petty cash fund.’’ another situation in here. That is the and handle the reservations for hotel ‘‘Each of the eight checks was made proper legal indictment of Billy Dale accommodations and meals, the money out to cash and signed by the director following a proper investigation by the to pay for those items will be collected of the press travel office and endorsed FBI, following a proper review of that by the Federal employees at the Travel by the same individual. Those discrep- investigation by the Department of Office from the news organizations and ancies totaled,’’ according to Peat Justice, following a proper indictment then paid to the respective companies Marwick, ‘‘$23,000.’’ by the Department of Justice from the that have incurred the costs. As a result of that audit, the FBI grand jury, following a proper jury To cover the costs in advance and began an investigation, and during the trial. keep the operation running, the Fed- investigation the FBI learned the fol- The issue with respect to this legisla- eral employees at the Travel Office lowing. Sometime around 1988, Billy tion then is not the payment—and I am oversee and maintain an account at the Dale started depositing checks that be- going to repeat this because we are Riggs Bank through which payments longed to the Travel Office into his going to hear a lot about the improper and reimbursements are made. own personal account in Maryland that firing, which is conceded, has been ac- So let’s say that the White House he had with his wife. Dale deposited, knowledged for years, and I have no press corps needs 20 rooms at a hotel in the FBI found, 55 checks over 3 years doubt that we will hear later tonight, Paris. The White House Travel Office totaling $54,000. He did not reveal that perhaps tomorrow, in great detail books the 20 rooms, pays for them he was depositing those checks into his about the improper firing of these em- when required either upfront or after account in Maryland instead of in the ployees of the Travel Office, and that is the trip, and then it bills each respec- office account across the street to any- not the issue. That has been acknowl- tive news organization for its share of body. He did not acknowledge or notify edged at least for 2 years. Those attor- the expenses. Peat Marwick he was doing it. He did ney fees, again, should be and have That is how it is done. Why Federal not tell the FBI he was doing it. He did been paid for the most part and will be employees should be the ones respon- not tell his coworkers at the White paid, the balance, in this legislation. I sible for getting the press corps around House he was doing it—nobody. The think it is supported universally that the world and accommodated may not FBI uncovered the deposits in his ac- they were inappropriate firings and be 100 percent clear, but that is the count because it had subpoenaed the that the legal fees should be paid. I do way it works. There is no problem with records from that account. not know anyone who disagrees with that. That is the way it works. The FBI also learned that on numer- that one. White House Travel Office employees ous occasions Dale cashed Travel Office The issue here is the payment of at- would often go on these trips to man- checks for petty cash at the Riggs torney fees to somebody who was prop- age the travel and to cover incidental Bank but failed to record that fact on erly and legally indicted for the first costs such as baggage handlers and the petty cash ledger, which he was time that I can find in our history. No local transportation. The employees supposed to do. There was an unac- standards in the committee report, no who would go on a trip would take a counted-for discrepancy of $13,000. Dur- committee report from the Senate, just fair amount of cash with them to pay ing the Peat Marwick audit, Dale never a private bill to pay attorney fees of for the necessary expenses. They get mentioned these facts and irregular- people legally indicted, following a this money, this cash they took along ities to auditors. He never told anyone proper investigation by the FBI, not with them from a petty cash account else about that money. We are here tainted, not alleged to be tainted, fol- that they maintained at the Travel Of- talking about petty cash. He did not September 11, 1996 CONGRESSIONAL RECORD — SENATE S10299 tell his fellow employees in the White There is not one of us in this Cham- somehow or other that taints the pros- House Travel Office, anybody at the ber who would tolerate that conduct by ecution. Are we going to get into the FBI once the FBI investigation started. any of our employees. No one in pri- business of awarding attorney’s fees to And this is from the trial transcript vate industry would allow that. He did an indicted, properly indicted but ac- now of Billy Dale. it surreptitiously, he did it secretly, quitted, individual based on the Question: And you never told your deputy and even when he knew that the FBI amount of time that it took to acquit? that you had taken checks out of the Travel was investigating the financial man- O.J. Simpson’s trial lasted over a year Office and put them into your personal ac- agement of the Travel Office, he kept and the jury deliberated less than a count, did you? it a secret. day. Should the State of California pay Answer: That is correct. That is about as good probable cause O.J. Simpson’s attorney’s fees because Question: And you never told any of the as a lot of prosecutors are going to get people in the Travel Office that you had of the brevity of the deliberation? I do in a lot of cases. At trial, Billy Dale not think we want to walk down that taken checks out and put them in your per- testified and presented an explanation sonal account? road. I do not think we want to base Answer: That is true. for his conduct. He said that he was our judgment on the validity of a under pressure by news organizations Over the course of 3 years, 1988 to criminal prosecution on the length of a to keep the size of the office account at 1991, Billy Dale took checks intended jury’s deliberation. Riggs, the so-called surplus in that ac- for the White House Travel Office, Moreover, Billy Dale offered to plead count, at a reasonable amount. But he which were checks mostly from tele- guilty to a felony. This is a situation said he needed more money than that phone companies to reimburse the where we are asked to decide whether a in order to pay the bills, and he testi- Travel Office for prior payments in ex- person who offered to plead guilty to a fied he needed ‘‘convenience and flexi- cess of needs. He took those checks, felony should receive $450,000 in tax- bility’’ in getting cash for trips. payers’ money to pay for his defense which were supposed to go to the Trav- Apparently walking two blocks to el Office, deposited them in his per- when his offer to plead guilty was re- the Riggs Bank and cashing a tele- jected by the Government as not being sonal bank account in Clinton, MD. He phone refund check to take on a trip never told anyone, again, people he had adequate and he went to trial. The was not sufficient convenience. So here offer is to a felony called ‘‘wrongful worked with for decades, about taking is what he testified he did. He testified those checks. conversion’’ to one’s own use and prop- he kept a personal hoard of cash at his erty under his control. He offered to When he was asked about which home, not his home bank in Clinton, plead guilty to a felony called ‘‘wrong- checks he took, this is what he admit- but his house. He kept $20,000, he said, ful conversion.’’ He did it on November ted at trial. How did he select the at his house. This came, he said, from 30, 1994. This information has been checks which he was not going to de- the proceeds of a small business that made public in many newspapers. Sev- posit in the Riggs account across the he sold, from rent that he received street? It was the office account. The from his children, and from the pro- eral points in this written plea offer ones he took to Clinton, MD, and de- ceeds of his brother’s estate. He testi- are important to note. First, it is clearly and unequivocally posited and merged with his own pri- fied that he would take a telephone re- an offer to plead guilty to one count. It vate funds with his wife in his own per- fund check for the Travel Office, which is one count of violation of the U.S. sonal bank accounts, how did he pick might be in an amount of, say, $800 or Code, section 654, which states as fol- them? Which ones? There were thou- $1,000, he would go home, take that sands of checks which come in: amount from his cash reserve. He lows: Whoever, being an officer or employee of Question: And you took a little more care would then bring that amount from his the United States, or of any department or in selecting these checks, didn’t you? cash reserve into the Travel Office. He Answer: I don’t know what you mean. agency thereof, embezzles or wrongfully con- would then take the refund check verts to his own use the money or property Question: Well, you took the telephone re- which was intended for the Travel Of- fund checks, because there was no record in of another which comes into his possession the office that these telephone refund checks fice and deposit it in his personal ac- or under his control in the execution of such were issued and coming back to the office; count at the Clinton, MD, bank. That office or employment, or under color or right? is his explanation as to how he depos- claim of authority as such officer or em- Answer: That is right. ited $54,000 of Travel Office money in ployee, shall be fined under this title not Question: And so no one would know that his personal checking account, for more than the value of the money or prop- the money was missing, right? flexibility and convenience. erty thus embezzled or converted . ... Answer: That is right. He could have cashed these checks And so forth. Question: And, so that no one would learn two blocks away at the Riggs Bank, a Billy Dale says he did not agree to of what were you doing, right? plead guilty to embezzlement, and that Answer: That is right. bank that Travel Office employees used all the time, but he did not do that. He is correct. He did agree to plead guilty Now, again, the FBI was not told by deposited them in his personal bank ac- to wrongful conversion, which is part Billy Dale that he deposited $54,000 in count, merged with his personal money of the same statute as the embezzle- checks in his personal account. He did for ‘‘flexibility and convenience.’’ He ment language, the same section, sec- not tell Peat Marwick during their re- never made a copy of the checks, never tion 655 of 18 U.S. Code, which makes it view. Despite the negative report by told anyone in the Travel Office about a felony to either embezzle or wrong- Peat Marwick about financial mis- them. No other Travel Office employee fully convert. Both crimes carry the management, he did not disclose it who had the same financial needs and same maximum penalties of up to 10 then. He never told anyone about responsibilities on these trips—no years in prison. that—3 years, deposits checks in his other Travel Office employee deposited Billy Dale not only offered to pay a personal account. It was only after Travel Office checks in their personal fine of not to exceed $69,000, he also of- they were subpoenaed by the FBI that checking accounts. All the other Trav- fered to accept up to 4 months impris- they discovered the deposits of these el Office employees used either cash onment, one-half of which was to be Travel Office checks by Mr. Dale. from the Riggs account or cash from served in jail. So, now the FBI learns, because of its the petty cash account in the office. Why was Billy Dale offering to plead subpoenaed bank records, of these de- All the others—not Billy Dale. guilty? As he has said in various testi- posits of $54,000 in Travel Office money Now, those facts surely were reason- monies since he offered to plead guilty: in his personal account. That is not a able grounds upon which to proceed. No Because he wanted to spare his family small amount of money and it is not a one has argued—again, I emphasize, no the grief and expense of a trial. But he minor act by a Federal employee. It is one has argued that the decision to also offered to plead guilty because he a willful, intentional deposit of Travel prosecute was not reasonable here or did not want to face the risk, a risk Office funds in an employee’s private that the FBI investigation was not rea- that he must have thought he had a bank account. He did not keep the sonable here. The judge found that that reasonable likelihood of incurring, the funds separate. He merged them in his was adequate to sustain a conviction. risk of a longer jail term. His attorney own private account, all mixed to- Supporters of Billy Dale say because wrote in the plea offer and the con- gether. he was acquitted in just a few hours, sequences of the acceptance of the S10300 CONGRESSIONAL RECORD — SENATE September 11, 1996 plea—this is the attorney for Billy tion until after consultation with appro- Whenever a bill is referred by either House Dale that said in the plea offer: priate personnel within the FBI and the De- of Congress to the chief judge of the United partment of Justice. States Court of Federal Claims, the chief The Government will be able to publicize judge shall designate a judge as hearing offi- the conviction in a case that has received Third, the review by the Office of cer for the case and a panel of three judges considerable notoriety. The defendant will in Professional Responsibility and the De- of the court to serve as a reviewing body. all likelihood receive some jail time and will partment of Justice concluded: Each hearing officer and each review panel suffer a substantial financial detriment, all We found no wrongdoing on the part of any shall have authority to do and perform any of which is important to the Government. FBI employees regarding the Travel Office acts which may be necessary or proper for Moreover, Mr. Dale will be forced to live matter. the official performance of their duties, in- with the stigma of having acted criminally The Senate has not had 1 hour of cluding the power of subpoena and the power in his handling of the Travel Office money. to administer oaths and affirmation. On the other hand— hearings on this bill. We don’t have a committee report upon which we can The hearing officer shall determine the His attorney writes in the plea offer: assess the facts, not only of the crimi- facts and shall append to his findings of fact Mr. Dale will avoid the expensive trial and nal prosecution but of the estimate for conclusions sufficient to inform Congress whether the demand is a legal or equitable the risk of a substantially longer jail term. the attorney’s fees. So he offered to plead guilty, pay claim or gratuity and the amount legally or The House committee report upon equitably due from the United States to the both a sizable fine and actually serve which we are supposed to rely does not claimant. some time in jail. even mention, does not discuss the na- Referral under this statute to the One other fact relative to the trial. ture of the indictment or the facts sur- Court of Claims would require the At the end of the Government’s case, rounding the indictment or the basis court to develop a factual record out- Billy Dale made a motion for acquittal, for it. Those facts are ignored. What it side the rhetoric of politics upon which and that was denied. This motion al- focuses on and what I am sure will be we could either then base a judgment lows the judge to assess the presen- focused on here tonight is the inappro- or, in the case of the amendment that tation of the Government’s evidence priateness of the firings, which the has actually been filed, all that would and decide if, on its face, it is insuffi- White House and others concede. be necessary is for the Court of Claims cient to present to a jury. The attorney’s fees relating to the to determine that, in fact, it is an equi- Rule XXIX of the Federal rules of firing are, concededly, appropriately table claim. And then the legal fees criminal procedure provide that: paid. We should pay them. We paid would be automatically paid. We would three-quarters of them. We should pay The court, on motion of a defendant or on be given a report under the amendment its own motion, shall order the entry of judg- the balance in this bill. Those are not which the Senator from Nevada filed, ment of acquittal of one or more offenses at issue. It is not the firings that is at but it would not have to come back charged in the indictment after the evidence issue here. It is whether or not the here for further action. We would au- on either side is closed if the evidence is in- criminal indictment and the prosecu- sufficient to sustain a conviction of such of- tion was defective and inappropriate. thorize these attorney’s fees subject to fense or offenses. That is the issue, because that is what a determination and finding by the So here was another check on the le- these $450,000 of attorney’s fees relate Court of Claims pursuant to a law gitimacy of the prosecution. Even to. which is on the books that that is an though the grand jury was appro- The basis upon which we should con- equitable claim against the United priately convened and the indictment sider paying Mr. Dale’s attorney’s fees States. was without defect and the prosecution would be if there had been information Surely, we owe that much to the did not violate due process and was not uncovered that the Federal Govern- American taxpayers who would be pay- inappropriately selective, the defend- ment acted unfairly in indicting Mr. ing this bill, and we owe that much to ant can ask the judge to consider Dale. If there was sufficient evidence of ourselves before making a decision on whether the evidence of guilt, as pre- that, then we should be given that in- overturning decades of precedent. That sented by the Government, is sufficient formation. That is the only basis upon is what the amendment would do. to sustain a conviction by the jury. If which we ought to be considering Again, it allows for the five Travel the Government did not present suffi- spending almost a half million dollars Office employees who were not indicted cient evidence to convict, then the case of the taxpayers’ money to reimburse to receive the final reimbursement of does not go to the jury. The judge must Billy Dale and setting a precedent, $50,000 for their legal fees, which I acquit based on the motion of the de- which, as far as we can determine, is, think we all support. But it would refer fendant over its own motion. indeed, a precedent, paying the attor- the matter relative to Billy Dale’s at- Billy Dale made this motion, and it ney’s fees of someone who is properly torney’s fees to the Court of Federal was denied by the judge. So, in the and legally indicted. Claims for determination on the mer- opinion of the judge, after the Govern- We do not have a record of the facts its, and if the court determines that ment had presented all of its evidence, upon which we can make such a judg- Billy Dale has either a legal or equi- there was sufficient evidence to sustain ment. table claim, then this amendment a conviction. Finally, Mr. President, there is a would provide Billy Dale would be paid I think a reasonable person looking process in law to get that record. This directly at that time when the findings at this record would find it reasonable legislation is effectively a private re- of the Court of Claims become final. to conclude that the criminal prosecu- lief bill. In fact, the Parliamentarian No additional action would be re- tion of Billy Dale was legitimate. has already ruled that the freestanding quired other than a report to us of Three separate reports on the firing of bill is a private relief bill for Billy what that final decision is. If, however, the White House Travel Office employ- Dale. the court were to conclude that the ees concluded there was no wrongdoing There is a statutory procedure, 28 payments to Billy Dale were not based by the FBI, which was the lead inves- U.S. Code, section 2509. That procedure on a legal or equitable claim but would tigative agency into alleged criminal provides that the Court of Claims can be a gratuity, then the fees would not conduct in the Travel Office. The GAO determine whether or not private relief be paid. concluded in May 1994 that ‘‘the FBI sought from Congress and the tax- This is a routine procedure. We use and the IRS actions during the period payers by an individual or group of in- this procedure dozens of times. We surrounding the removal of the Travel dividuals is appropriate. refer cases to the Court of Claims all Office employees were reasonable and Under that statute, the Court of Fed- the time. We do it with private relief consistent with the agency’s normal eral Claims, on referral from either the bills all the time. Sometimes the court procedures.’’ Senate or the House, is required to de- finds that there is a legal or equitable The FBI’s internal review in May 1993 termine if there is a legal or equitable claim; sometimes it finds that it is a determined ‘‘the FBI acted correctly:’’ claim to taxpayers’ money or whether mere gratuity. But before we set a FBI personnel declined to offer guidance, such payment would be simply a gratu- precedent that we may come to regret, restricted their interest to the parameters of ity. The statute provides the following there should be, from some objective a possible criminal investigation and did not in part, and here I am reading section source, a determination that this claim commit to conducting a criminal investiga- 2509 of 28 U.S. Code: is a legal or equitable basis. September 11, 1996 CONGRESSIONAL RECORD — SENATE S10301 Adoption of the Reid amendment, on these amendments and complete a reasonable time. We either get a time which has been cosponsored by myself this bill. But there will be no further agreement, or vote late tomorrow and Senator BIDEN, is the surest way to rollcall votes tonight. The next vote night, or vote on Friday. This is one remove this issue from politics, which will be at 9:30 in the morning, if any time where the leadership is not going is regrettably infused. Mr. President, I are ordered. to have a lot of options. yield the floor. Does the minority leader have any So I plead, once again, with our Mr. HATCH addressed the Chair. comment? Members, let us be reasonable. This is The PRESIDING OFFICER. The Sen- Mr. DASCHLE. Mr. President, let me not the last train. We still have plenty ator from Utah is recognized. just say, I want to thank the Members of times to play games, if we insist, on Mr HATCH. I yield to the distin- of our leadership for working with both sides of the aisle. I am not putting guished majority leader. I would like Members on our side. As I understand the other side down. We have ours on to retain my right to the floor. it, the list is quite extensive on both there, you have yours. So let us agree Mr. LOTT addressed the Chair. sides. There are 51 Republican amend- to hold hands and do this bill, and we The PRESIDING OFFICER. The ma- ments and almost that many, not quite can save all of our choice, lovely, lus- jority leader. that many, Democratic amendments. cious amendments for the next bill or Mr. LOTT. Mr. President, I thank the But we are going to do our best to work the next bill. We still have 3 weeks. We distinguished Senator from Utah for with the majority leader to see if we do not have to do it on this one. Then yielding, but I do think we need to no- can bring that list down substantially we can do two very important bills— tify our Members of where we are. It by tomorrow. Treasury-Postal Service, Chemical will not take me but just a moment. Obviously, Senators would be very Weapons Convention. And I believe we For the information of all Senators, helpful to both of us if we could limit can work on that in the morning. I earlier this evening the Senate reached the amount of time on many of those have seen miracles happen around here an agreement which limits the amend- amendments and offer additional before. Maybe we could come up with ments in order to the Treasury-Postal amendments tonight. There is no rea- one in the morning. Service appropriations bill. The man- son even if there are no more votes Mr. REID. Would the majority leader agers have been working, along with why we cannot have a number of yield? the leadership representatives, with a amendments yet tonight. So, hopefully Mr. DASCHLE addressed the Chair. number of Senators, to reduce that we can do that and be in a much better The PRESIDING OFFICER. The mi- list, instead of just a large list of position to come to some final assess- nority leader is recognized. amendments here. ment as to what the list looks like by Mr. DASCHLE. Might I just make However, the grand total of amend- midmorning tomorrow. one other point. I appreciate the indulgence of the ments on the list is somewhere be- Mr. LOTT. Mr. President, just in con- clusion, certainly we will be working Senator from Nevada. tween 95 and 97, I guess, amendments, As I look at the list on both sides, which certainly is unsatisfactory at with the Senator from South Dakota. We will get this list pared down to the one thing I think the majority this point. It makes it very difficult for leader will agree with me on, about us to be able to complete the bill. But what I guess is a real list, probably two or three or four or five max. I do not two-thirds, if not three-fourths of those in order for the managers to continue amendments are legislative amend- to work and try to reduce these amend- know why we have to go through these exercises, but we do, and we will do the ments. I believe we made a very big ments or to clear some of the amend- mistake a year ago in overriding the ments, I would like to announce now, best we can. Again, under the rules we have, every Chair on the question of legislating on there will be no further votes this Senator has his right or her right to appropriations bills. evening, and any votes ordered tonight make their case, and we will work with I think we are paying a heavy price, on this or other amendments will be them on that. But I do want to remind and will continue to pay a heavy price, stacked at 9:30 a.m. on Thursday. Senators, a lot of times they think, so long as we continue to insist that Senators should be aware that the ‘‘Well, this will kind of just go away, even on appropriations bills we can add managers are here and are willing to and I won’t have to stay late tomorrow anything to everything. And that issue debate, perhaps accept amendments or night, and I can fly home tomorrow will come back. It stung us and it has to conclude some of the amendments night or I’ll be able to leave Friday caused us more problems in the last 2 that are now being debated. Members morning.’’ years than virtually anything else. I should expect rollcall votes, of course, There are some things around here think it was a big mistake. Our Repub- throughout the day on Thursday. It that have to occur. And we have a lican colleagues insisted at the time to would be my intent, in the morning, unanimous-consent agreement on the overrule the Chair and allow the prac- after consultation with the managers Chemical Weapons Convention. I have tice of legislating on appropriations and the minority leader, that we would an obligation to call that up. And I am bills, so these amendments are fair continue on amendments in the morn- going to. It requires 10 hours under the game. But we are now paying the price, ing. rule. We can either cut that time down and continue to pay the price so long After the stacked votes, if any, at or we can take the whole 10 hours. We as that issue becomes almost a joke 9:30—we had hoped to go to the Chemi- can go late tomorrow night. But if we with regard to these appropriations cal Weapons Convention at 10 o’clock do not begin until 1 or 2 or whatever bills. in the morning. It looks like we will time, it would be very late tomorrow So I think when we get back for the have to just delay that and see where night, and we could not do anything 105th Congress, and when we have the we are, which means that we could about it basically. That one would go opportunity again, in the majority, to have to go very, very late into the until we got to the end. deal with this issue, I hope we can re- night on Thursday night, could actu- So when Senators come, pleading, store the rule. ally have to go over until Friday to saying, ‘‘I want to go home,’’ there Mr. LOTT. The majority will cer- have a vote on Friday morning. would not be anything we could do if tainly look at that very closely be- In any event, there will not be any we wanted to. Or I guess one other op- cause we will be working in the major- votes after 12 noon on Friday, since it tion is, we can go over and have a vote ity with the minority. I think this is is a Jewish holiday. I had hoped we on that on Friday morning. I know one case where maybe we can agree and could come to some reasonable conclu- that there are some Members of the in fact change the rule or take action sion on this bill, get it completed, and Jewish faith who would like very much to bring some reasonableness back to then spend the necessary time tomor- on their holiday to be able to leave on this area. I think I agree with what the row on the Chemical Weapons Conven- Friday morning so they can be with Senator is saying. Let us work to- tion. their families before the Jewish holi- gether no matter, you know, which It is my intent to go to the Chemical day begins. I would like to honor that, party is in control to get that resolved. Weapons Convention tomorrow. I just but we are in a bind here. Mr. HATCH addressed the Chair. do not know when it might be now in If we finish this bill at a reasonable The PRESIDING OFFICER. The Sen- an effort to try to get some conclusion time, we can go to chemical weapons at ator from Utah. S10302 CONGRESSIONAL RECORD — SENATE September 11, 1996 Mr. REID. While both leaders are on Mr. SHELBY. I wonder if the Demo- Mr. HATCH. Mr. President, this has the floor, speaking for me, this Sen- crat leader would yield? to be one of the most hypocritical ator, and for—sorry. Mr. DASCHLE. I yield. White Houses in this century. And that Mr. LOTT. I believe that is correct. I The PRESIDING OFFICER. The Sen- is really saying something. Frankly, I believe the Senator from Utah had ator from Utah has the time. think it is abominable, absolutely yielded to me. Mr. HATCH. The parliamentary situ- abominable. And my colleagues on the Mr. REID. I am sorry. ation is that the Reid-Levin amend- other side of the aisle are attempting Mr. HATCH. I will be happy to yield ment has been filed. We filed a second- to retry Mr. Dale right here in the Sen- for a question, and then retain my degree amendment. Their amendment ate. Senator LEVIN, the distinguished right to the floor. would go to the Court of Claims. Senator from Michigan, is even sug- Mr. REID. I want to make a brief Frankly, I do not see any reason why, gesting that Billy Dale should have statement. I apologize. if we went on my amendment, why you been found guilty. The PRESIDING OFFICER. Without have to have a vote on your amend- Fortunately—fortunately—our sys- objection, it is so ordered. ment. tem calls for a more equitable fair Mr. REID. While both leaders are Mr. REID. That is the whole problem. process. Mr. Dale has been tried by a here, I want them to understand that, We want a vote. We want the Senate to jury of his peers, and he was acquitted speaking for this Senator, Senator vote as to whether that matter should in less than 2 hours. I think there is a LEVIN and Senator BIDEN, we do not in- be referred to the Court of Claims. If principle called double jeopardy. I am tend to hold this bill up because of the the Senate says no, we will walk away really amazed that after this man was amendment we have offered. However, from this. smeared by the White House—for if we do not get a vote on our amend- If we only get a vote to keep this in greedy purposes, to help their buddies, ment, then we have no alternative. We the bill, then I think I can speak for the Thomasons, and their relative, Ms. need an up-or-down vote on our amend- the Senator from Michigan and the Cornelius—was put through an abys- ment. And the procedure, the way Senator from Delaware, we are going mal trial that cost him $500,000. And things are now before us, we will not be to talk here a while. this outfit is acting like something able to do that. So we will agree to a Mr. HATCH. You are going to fili- should not be done. time agreement, and be totally reason- buster the bill over that issue? I found the White House critical in able, but we want an up-or-down vote This is legitimate. You filed an this issue, and that is an understate- on whether or not this matter should amendment; we filed a second-degree ment. The fact is, these people were be referred to the Court of Claims. amendment. smeared. They were treated improp- Mr. DASCHLE. Mr. President, would Mr. DASCHLE. Would it accommo- erly. They were abused. The FBI was it be in order to ask unanimous con- date both to have two freestanding abused, and it was all done for the pur- sent to get a time agreement, say, for amendments back to back, voted up or poses of greed, so they could take care additional debate of no more than an down at 9:30? That would accommodate of their buddies. hour and 20 minutes? I am prepared to everyone and resolve the matter, and The fact of the matter is, if you look offer one of the amendments I was we could move on to other issues. at what has happened here, it is just planning to offer in order to accommo- Mr. HATCH. Fine with me. pathetic. A memorandum we got from date the schedule if we could, perhaps, Mr. LOTT. Mr. President, I believe the White House admits to the wrong- divide the next 90 minutes equally. we can get an agreement to that. I Mr. HATCH. I might add, it is going doing: want to clarify the time that we are You all may dimly remember the Travel to take me a little bit of time to rebut talking about. what they have said. I will certainly be Office affair in which a number of White Mr. HATCH. Will the Senator yield? I House staff, many immature and self-pro- amenable to trying. will move to table the Reid amend- moting, took impulsive and foolhardy ac- Mr. DASCHLE. How much time does ment, but it would be a vote up or tions to root out problems at the beginning the Senator from Utah need? of the Clinton administration and gallantly Mr. HATCH. I have no idea. I imagine down. Mr. REID. We understand. We would recommended they take over its operation. 45 minutes to an hour. have an opportunity to offer our Those comments were from the Mr. REID. I need about 15 minutes if White House itself. I get an up-or-down vote on my amend- amendment, and you could move to table it. Now, let me read from the Watkins ment sometime through this process. memorandum. This is an interim White Mr. DASCHLE. I would like about 10 Mr. LOTT. I believe that would do it. Mr. President, I thank the Demo- House memorandum. I ask unanimous minutes, so perhaps we could take an consent to have this printed in the hour on the Republican side and a half cratic leader for the suggestion in try- ing to put that in motion here. RECORD. hour on the Democratic side. There being no objection, the mate- Mr. LOTT. I believe the chairman of I ask unanimous consent that the rial was ordered to be printed in the the committee has some comments. time on the pending issue be limited to Mr. DASCHLE. Could we ask unani- 60 minutes under the control of Sen- RECORD, as follows: mous consent that the time for the ator HATCH, with 50 minutes to Senator [Privileged and Confidential—Memorandum] amendment be divided two-thirds/one- HATCH and 10 minutes with Senator From: David Watkins. third, providing the Republicans with SHELBY, and then 30 minutes of time Subject: Response to Internal White House an hour, the Democrats with half an under the control of Senator DASCHLE Travel Office Management Review. hour, beginning at 8:45, with a vote to or his designee, and votes occur first on In an effort to respond to the Internal be held tomorrow morning. the amendment No. 5257, and then on Travel Office Review, I have prepared this Mr. LOTT. Is this on the Hatch or in relation to the amendment of the memorandum, which details my response to amendment? Senator from Nevada, and that vote the various conclusions of that Report. This Mr. HATCH. And the Reid amend- occur at 9:30. is a soul cleansing, carefully detailing the Mr. DASCHLE. It would accommo- surrounding circumstances and the pressures ments, back to back, following the end that demanded that action be taken imme- of the debate. date a Senator if that vote could occur diately. It is my first attempt to be sure the Let me say this: The proponents have at 9:45. record is straight, something I have not done taken 2 hours; I believe I can finish in Mr. LOTT. We would have that vote in previous conversations with investiga- about an hour, and I will try to do it in at 9:45. Every time we do that, it tors—where I have been protective and vague less time than that, but I do have to pushes the Chemical Weapons Conven- as possible. I know you will carefully con- rebut what they have had to say be- tion further back down, but the vote is sider the issues and concerns expressed here- cause I think it has been outrageous. to occur at 9:45. in. Mr. REID. If the Senator would yield I also ask each amendment be in the As a preliminary matter, the procedure fol- lowed in finalizing the report was needlessly again, I have no problem with the rea- first degree and no second-degree unfair. Even in the context of General Ac- sonable suggestion made by the Demo- amendments be in order. counting Office audits and reviews, the re- cratic leader as long as we have a vote The PRESIDING OFFICER. Without viewed agency is afforded the opportunity to on both amendments. objection, it is so ordered. respond to the report and criticisms prior to September 11, 1996 CONGRESSIONAL RECORD — SENATE S10303 release and publication. This is an important picture it must be kept in mind while read- President staff, in anticipation of the end of step which allows inaccuracies or erroneous ing the specific criticisms of the Podesta the fiscal year staff cuts; however, when conclusions to be addressed and corrected Management Review. I will now address pressure began to build for immediate action prior to publication, and more importantly, those criticisms directly. in the Travel Office, the long-term plans allows the criticized party to respond to the RESPONSE TO SECTION II ‘‘DISCUSSION OF were short-circuited. contents of the report. Unfortunately, in this PRINCIPAL ISSUES’’ OF TRAVEL OFFICE REVIEW ‘‘The other major White House mistake in case, neither I nor others directly involved the treatment of the former Travel Office ‘‘Travel Office Management’’ (Page 14): employees was in tarnishing their reputa- were afforded any opportunity to rebut the ‘‘The review conducted by KPMG Peat tions. This resulted, in discussed above, from contents and conclusions of the internal Re- Marwick uncovered serious financial mis- the inappropriate disclosure of an FBI inves- view. management.’’ At . tigation into potential wrongdoing in the In this case, I was notified of the forthcom- At the strong recommendation of myself Travel Office. (p. 15) * * * It was a mistake ing reprimand around 10 a.m. on July 2. But and others in my office, KPMG Peat for the White House to publicly discuss FBI I received a copy of the report shortly after Marwick was brought in—instead of having involvement, which led to the disclosure of noon the same day, and at the exact time the FBI take over immediately—to review from that briefing the report was publicly re- the FBI investigations. * * * The talking the financial practices of the Travel Office. I points prepared by Watkins’ office for the leased. I was never afforded the opportunity concurred in Peat Marwick’s analysis and to respond, and until this memorandum, I press office stated that the White House had conclusions: Management of the Travel Of- asked the FBI to investigate. Eller had also have never responded to the report or its fice was abysmal. contents. sanctioned the FBI in an earlier draft of With the recent release of GAO audits and ‘‘Treatment of the Travel Office Employees’’ talking points. In making that reference, the resultant press coverage and criticism of (Page 15): Watkins and Eller were insensitive to the ef- ‘‘While all White House Office employees my office, setting the record straight on the fect such reference can have on the reputa- serve at the pleasure of the President, the Travel Office occurrences is important. tion of an innocent person. This mistake was abrupt manner of dismissal of the Travel Of- compounded when Fouter’s and Kennedy’s BACKGROUND fice employees was unnecessary and insensi- instruction to eliminate the FBI reference As you recall, an issue developed between tive.’’ At ll. was not carried out. Watkins did attempt to the Secret Service and the First Family in In the conversation with the Travel Office reach Myers, and Eller himself omitted the February and March requiring resolution staff notifying them of their termination, I FBI references in his own background press and action on your’s and my part. The First explained that a review of the Travel Office briefings the morning of May 19. However, Family was anxious to have that situation operations had always been planned to con- neither ensured that Myers avoided the ref- immediately resolved, and the First Lady in form to the general review process imple- erence.’’ At 18. particular was extremely upset with the de- mented across the White House administra- Revealing the ongoing FBI investigation layed action in that case. tive offices and the Office of Administration. was insensitive, but that fact comprised one Likewise, in this case, the First Lady took I further explained my decision to terminate sentence in a draft version of talking points interest in having the Travel Office situation them; I explained that from a management drafted by one of my staff and distributed for resolved quickly, following Harry perspective, in this case it was best to re- comment on the morning of May 19—the day Thomason’s bringing it to her attention. lieve them all immediately from their jobs of the termination. The talking points were Thomason briefed the First Lady on his sus- and provide them a additional two weeks in distributed to Foster, Kennedy, Myers, and picion that the Travel Office was improperly pay. I informed them of this and asked them Eller with the expectation that we would funnelling business to a single charter com- to leave immediately. The tone was firm, have until the 2 o’clock press briefing to get pany, and told her that the functions of that with emphasis on the mismanagement re- the kinks worked out of the talking points. office could be easily replaced and reallo- counted in the Peat Marwick report. I ex- As soon as the suggestion came to delete the cated. plained that in light of that mismanage- reference to the FBI, it was done. I imme- Once this made it onto the First Lady’s ment, it was best to dismiss the entire office. diately went to see Myers to inform her of agenda, Vince Foster became involved, and The allegation in the report that this was the change and sensitivity to the ongoing in- he and Harry Thomason regularly informed insensitive is wrong. These employees work vestigation, but she had gone to the Hill me of her attention to the Travel Office situ- at the pleasure of the President and all in with the President. I struck that sentence ation—as well as her insistence that the sit- the White House Office should understand from Eller’s copy and asked him to inform uation be resolved immediately by replacing that there is extremely low tolerance for the Myers. As soon as Myers returned from the the Travel Office staff. severely negligent and unaccountable proce- Hill, prior to noon—more than an hour be- Foster regularly informed me that the dures followed in that office. In light of the fore the press briefing—I proceeded to her of- First Lady was concerned and desired ac- First Lady’s insistence for immediate action fice and told her not to mention the FBI in- tion—the action desired was the firing of the and your concurrence, the abrupt manner of vestigation She informed me that it was too Travel Office staff. On Friday, while I was in dismissal, from my perspective, was the only late. She had already responded by phone to Memphis, Foster told me that it was impor- option. a reporter’s inquiry by phone. tant that I speak directly with the First ‘‘Moreover, the Peat Marwick report did Thus, this was a mistake made on my part Lady that day. I called her that evening and not furnished efficient cause for terminating because I was not intuitive enough to take she conveyed to me in clear terms that her the employees without financial authority. the talking points drafted by one of my staff desire for swift and clear action to resolve As a legal matter, the White House has this and realize that the FBI investigation should the situation. She mentioned that Thomason right to terminate an employee without not be mentioned—despite the strong sup- had explained how the Travel Office could be cause. In this case, however, the White port this provided for White House actions. run after removing the current staff—that House asserted that this termination of all ‘‘Catherine Cornelius also played a role in plan included bringing in World Wide Travel seven was for cause. Based on the informa- the dismissal of the Travel Office employees, and Penny Sample to handle the basic travel tion available, this assertion was inappropri- and she to had a personnel stake in the out- functions, the actual actions taken post dis- ate with respect to the employees who did come. As the three memos she wrote on the missal and in light of that she thought im- not exercise financial authority. . . . Abuses Travel Office attest, who was eager to work mediate action was in order. cause, in some humans approach was in in and, if possible, manage the Office. Her On Monday morning, you came to my of- order. For example, even if it were decided proposal to reorganize the travel office was fice and met with me and Patsy Thomasson. that the Travel Office would operate more appropriate and would be considered usual to At that meeting you explained that this was efficiently with a reorganized, smaller staff, any transition process. But her role in the on the First Lady’s ‘‘radar screen.’’ The mes- an effort could have been made to locate decision-making process after she came, in sage you conveyed to me was clear: imme- other federal employment for those who effect, an ‘accuser’ of the Travel Office em- diate action must be taken. I explained to would be displace.’’ At 15. ployees, by collecting documents and alleg- you that I had decided to terminate the As early as February, the intent of Man- ing possible wrongdoing, was inappropriate. Travel Office employees, and you expressed agement and Administration was to review * * * [E]very effort should be made to insu- relief that we were finally going to take ac- and reorganize the Travel Office before Octo- late the federal government’s management tion (to resolve the situation in conformity ber 1 into a leaner operation—just as with decisions from even the appearance that per- with the First Lady’s wishes). We both knew every other office within the domain of Man- sonal interests have played a role in the out- that there would be hell to pay if, after our agement and Administration, from the come of those decisions.’’ At 20. failure in the Secret Service situation ear- Photo Office to the Telephone Office to the Catherine Cornelius had no part in the dis- lier, we failed to take swift and decisive ac- Travel Office. That remained the plan until missals. I put no stock in most of what tion in conformity with the First Lady’s the intense pressures surrounding this inci- Cornelius told me except to the degree it was wishes. You then approved the decision to dent arose in May. If given time to develop, factual. Her arguments for dismissal and re- terminate the Travel Office staff, and I indi- the original plan to reorganize the Travel Of- organization had absolutely no bearing on cated I would send you a memorandum out- fice for a smooth transition in September the final decision to terminate the employ- lining the decision and plan, which I did. would have allowed the Travel Office em- ees. If her input had been respected, the need I have never stated all this so clearly be- ployees to seek other federal placement, for Peat Marwick would have been neg- fore, but to form a complete and accurate along with other Executive Office of the ligible, but in light of her self-interest and S10304 CONGRESSIONAL RECORD — SENATE September 11, 1996 her tendency to exaggerate, I decided to rely lished, successful travel agency, twenty- in travel and to allow her to make a mean- exclusively on a professional accounting third largest in the country. World Wide ex- ingful and significant contribution to this firm. Catherine Cornelius, despite the Re- ecutives understood that they could secure Administration. The original assignment view’s suggestion to the contrary, had abso- White House business only through an open, was made to see if she would work there per- lutely no role in the decision-making proc- competitive bidding process. But the impres- manently—if she liked that work and if it ess, and was in no danger of being placed in sion of favoring a local supporter was impos- likewise suited her. The report I asked her to charge of the Travel Office. My intent all sible to dispel.’’ draft and provide on May 15 was in no way along was to put a trained financial manager At this point in the sequence of events, the driving force for her assignment to the over all the White House administrative op- with the current plan approved by the First office, it was simply a way to help determine erations, including the Travel Office. Lady and yourself including resort to World her long-term suitability. She was placed in When I assigned Catherine to the Travel Wide Travel, it would have unnecessarily that office because of her extensive experi- Office, I did ask her to provide a report to me heightened confusion to recruit an unknown ence since October 1991 in coordinating trav- on May 15 based on her previous experience travel service. Again, a primary source of el for then-candidate Bill Clinton. She was and actual experience in the Travel Office. the problem was the abruptness caused by not placed in the Travel Office primarily to She was placed in the Travel Office because the calls for immediate action in the Travel make recommendations on its future struc- of her prior experience in that area and a Office and the at least daily inquiries. If my ture. need to move her out of my immediate of- plan to slowly shift as the fiscal year came ‘‘Watkins compounded the problem where fice—where she had become a liability to to a close had remained intact, a travel in responses to Thomason’s complaints, he daily operations. Having had extensive expe- agent would have been procured in a more asked Cornelius to be alert to possible rience with Catherine, I knew that her re- transparent fashion. However, since at the wrongdoing or corruption. Cornelius lacked port would contain unworkable rec- time of hiring World Wide it was known that the experience or preparation for this role. ommendations, but as I have in the past, I they had a GSA contract, hiring World Wide Nor was she given my guidance.’’ At 21. expected to distill those with which I dis- was not as questionable or ‘‘non-competi- Catherine was not asked to investigate or agreed from those I thought helpful. Unfor- tive’’ as the Report or the press would have document wrongdoing by the Travel Office tunately, due to her desire to revamp the one believe. staff. I understood that she lacked experi- ‘‘Bringing in Penny Sample, President of Travel Office in her own likeness, Catherine ence to perform such a task. Catherine was Air Advantage, to handle press charters on a may have ignored my intent to carefully re- merely asked to observe what transpired in no-bid, volunteer basis furthered the appear- view and scrutinize any recommendations the Travel Office—nothing further was re- ance that the White House was trying to help made. quested or expected. Special training is not its friends. Sample was the Clinton-Gore After Catherine became an ‘‘accuser’’ of needed to keep one’s eyes and ears open, to campaign’s charter broker and a close asso- the Travel Office staff, her input was merely observe. I never asked her to collect docu- on a factual level. I interviewed her to derive ciate of Darnell Martens. This implies no im- proper conduct on Sample’s part, but, again, ments or other information; she undertook the factual basis of her allegations and for this of her own volition. facts about the tasks performed by the Trav- created an appearance of favoritism.’’ At 20. Like World Wide Travel, Penny Sample ‘‘If, in April, Watkins thought the allega- el Office staff, but never asked for other, was part of the short-term plan for running tions reported by Thomason should be non-factual input other than the May 15 re- the Travel Office after the terminations. looked at more seriously, he should have port I was expecting. All views she expressed Since she was willing to volunteer her serv- done so in a more professional manner.’’ At were evaluated in light of her known bias. To ices without her or her company receiving 21. put it simply, she had no impact on the deci- any compensation—because we realized, like The suggestion that this could be more sion-making process other than by providing they did, that they would be conflicted out professionally handled is absurd. I noted the factual information. of virtually all White House business—we be- allegations, but thought they could wait for ‘‘The White House took several actions review—and knew they would be examined— that demonstrated an insensitivity to the lieved the conflicts and appearance of favor- itism issue had been sufficiently addressed. during the course of the planned internal re- appearance of favoritism. Hiring World Wide view of the Travel Office. For that reason, no Travel on a no-bid basis—even as an interim, Again, we did not believe it to be favoritism to have a former service provider for the action was taken other than to ask to Cath- stop-gap measure—created the appearance of erine to ‘‘keep her eyes and ears open.’’ favoritism toward a local friend from the campaign volunteer to assist the White ‘‘Poor Planning.’’ campaign. World Wide’s president, Betta House. ‘‘There was no adequate plan in place to Carney, is a long-time acquaintance of Wat- ‘‘White House Management’’ (Page 21): manage the Travel Office in the aftermath of kins. Watkins’ Little Rock advertising agen- ‘‘The White House made a number of man- the dismissals.’’ At 21. cy was a client of World Wide in the 1970s agement mistakes in handling the Travel Of- Harry Thomason indicated that he could and World Wide was a client of Watkins’ fice.’’ put a more efficient structure in place in an agency during that time period.’’ At 20. ‘‘Lax Procedures’’ Part of the plan for immediate replace- ‘‘The responsibility for Thomason’s influ- hour’s time to handle all the tasks of the ment of the Travel Office staff was use of ence on the Travel Office incident must be Travel Office. While I believed that my origi- World Wide Travel Service to book commer- attributed to White House management. nal plan to carefully review the Travel Office cial flights for the Office. This aspect of the Thomason should have avoided continued in- would best serve the White House, when I plan was discussed with all interested par- volvement in a matter in which his business spoke with the First Lady on Friday night, ties, and all concurred with knowledge that partner and his friends in the charter busi- May 14, she cited Thomason’s plan as sup- World Wide had been the campaign’s travel ness stood to benefit and in which there was port for the need for immediate action. That agent. This made the most sense due to the an appearance of financial conflict of inter- action involved utilizing World Wide Travel fact that we could not have publicly solicited est. But lax procedures allowed his continued and Penny Sample in the short term. As bids in light of confidentiality concerns and participation in the process. . . . There well, in my memo to you on May 17 explain- when we had ongoing business needs that had should be better management control with ing my intent to terminate the Travel Office to be taken care of immediately following respect to the mission that any non-White employees the next day, the intention to use the terminations. House staff person is brought in to carry out. World Wide Travel was outlined. You ap- As for my longtime acquaintance with Permitting Thomason—or any non-staff per- proved this action based on this memo prior Betta Carney and World Wide Travel, I must son who comes in on special assignment—to to the actual terminations. point to my experience in the business world. work on problems outside the scope of his or ‘‘For example, no one in the decision-mak- There, reliance on a firm from whom one has her assignment is not a good practice.’’ At ing chain spoke to the White House press and received exceptional service is the rule. 21. press advance staff members who worked As well, since the time I was a client of Management and Administration had no closely with the Travel Office employees, World Wide’s and since World Wide was a cli- part in bringing Thomason into the White knew the employees there, understood the ent of my advertising agency in the 1970s, I House. In fact, the responsible office failed services they provided and the degree to have personally and professionally used at or intentionally neglected to inform Man- which they were relied upon by members of least half a dozen other travel services. So, agement and Administration of the nature of the travelling press and other consider- any suggestion that calling them in this case his work. Contact with this Office on the ations. None was contacted by Watkins.’’ At derived from that history is absurd, and the subject consisted only of the First Lady’s Of- 22. media suggestions of improper favoritism fice calling to insist on immediate access for In light of the need for absolute confiden- were likewise absurd. Thomason. tiality, it would have been foolhardy to con- We had recent experience with World Wide, ‘‘Placing Cornelius in Travel Office.’’ sult the press or press advance staffs. From and based on that experience I knew we ‘‘Given Cornelius’ personal interest in run- the staff review and Catherine Cornelius’ ex- could rely on them for confidentiality in ning the Travel Office, Watkins should not perience (this is the primary area where her handling and preparing to handle the Travel have placed her in the Office to make rec- factual expertise was relied upon), we in fact Office business, until the business could be ommendations on how the Office should be did know the services that the Travel Office subject to full and open competition. structured.’’ staff performed. Catherine Cornelius and ‘‘None of this implies any improper con- As stated above, Catherine was placed in Harry Thomason regularly and repeatedly duct by World Wide, which is a well-estab- the Travel Office because of her experience reassured me that the press charter function September 11, 1996 CONGRESSIONAL RECORD — SENATE S10305 could easily be assumed with the assistance ated in light of the Secret Service incident fact, when, in fact, it isn’t fact. They of Penny Sample. ‘‘Thus, plans to replace earlier in the year. refer to two documents—one is the these aspects of the Travel Office functions For this reason, I was forced to undertake ‘‘prosecution memorandum,’’ and the were in place prior to the dismissals. Then, the Travel Office reorganization without a other is a ‘‘plea agreement.’’ when the need for immediate replacement business plan firmly in hand—something I Now, where did they get those docu- became evident, I committed to provide had never before done in years as a manage- whatever manpower was needed to perform ment consultant, where such plans were my ments? Those documents are not per- the services the Travel Office staff had per- business. mitted to be given to anybody. Some- formed. All failings outlined in the Podesta Man- body at Justice or the prosecutor’s of- Immediately following the dismissals, agement Review were either mistaken and fice has violated the most sacred can- meetings were held with the press and press groundless criticism, or were based on ac- ons of ethics, giving a memorandum of advance staff to make all necessary arrange- tions dictated by the need for instant action. one side of the case, which may or may ments for upcoming trips. These discussions This reorganization required more careful not be the true facts with regard to the came after the fact, but were accompanied review, but in this case that possibility was other side. In this case, they are not with a commitment from my office for all foreclosed. Delaying action was beyond my necessary resources to perform the job. control. the true facts. They are relying on con- ‘‘The absence of a plan prompted the last- fidential documents that were given Mr. HATCH. I am absolutely as- improperly—through the Department minute use of World Wide Travel and Penny tounded that people would come here Sample of Air Advantage, which fueled the of Justice, I presume. The Administra- charges of favoritism already discussed.’’ At and try to try Billy Dale again. tion ought to know better than that. 22. I am now going to quote Mr. Wat- Those documents are protected under As explained above, the plan was to use kins: the Department of Justice’ own regula- World Wide Travel and Penny Sample; there On Monday morning, you came to my of- tions. Once again, this is a was no absence of a plan. Because of the need fice and met with me and Patsy Thomasson. politicization of the Justice Depart- for confidentiality and the need for quick ac- At that meeting, you explained this was on tion, reliance on those with whom we had ex- the First Lady’s radar screen. The message ment, or the prosecutor’s office, one or perience seemed the only rational decision. you conveyed to me was clear: immediate ac- the other. There is no other way it Having performed superbly in the campaign tion must be taken. I explained to you that could be. If the Justice Department has and in light of our need for immediate travel I had decided to terminate the Travel Office allowed White House people to get agent support—due to the pressure for imme- employees, and you expressed relief that we these documents, which apparently has diate action from several quarters—we de- were finally going to take action (to resolve been the case here, so they could leak cided the plan would include short-term reli- the situation in conformity with the First them to Members of Congress to smear ance on World Wide Travel. Lady’s wishes.) We both knew that there again Billy Dale and his colleagues, I would have much preferred to have my would be hell to pay if after our failure in staff carefully review the Travel Office and the Secret Service situation earlier, we then that is further evidence of hypoc- make a detailed business plan for the new failed to take swift and decisive action in risy. fiscal year. This proved impossible, though, conformity with the First Lady’s wishes. One thing I found interesting, is the when the pressure for action from the First You then approved the decision to terminate quote the distinguished Senator from Lady and you became irresistible. This de- the Travel Office staff, and I indicated I Nevada has on the chart behind him. mand for immediate action forced me to ac- would send you a memorandum outlining the Notably, it is only part of the quote. cept hastily formulated plans for hasty, in- decision and plan, which I did. Let me read the whole quote. I am advisable action. This is a memorandum, which is reading from a response from Billy ‘‘Overview.’’ marked privileged and confidential, is Dale’s lawyer to an op ed written by ‘‘The management problems in the han- dling of the Travel Office extended beyond from David Watkins in response to the Robert Bennett to the Wall Street the White House Office of Management and internal White House Travel Office Journal. In the op ed, Mr. Bennett sug- Administration. The Chief of Staff and the Management Review. The White House gested that Billy Dale had entered a White House Counsel’s Office had the oppor- even admits they were doing the wrong plea agreement of guilty, which he tunity to contain the momentum of the inci- things. never did. Mr. Bennett was incorrect in dent, but did not take adequate advantage of The distinguished Senator from his suggestion that the letter of the this opportunity.’’ At 22. Michigan claims this case should be re- counsel for Billy Dale of November 30, ‘‘The process should have been handled in a more careful, deliberate fashion. Before ferred to the Claims Court because the 1994, constituted a willingness by Billy any decision was made, the Travel Office em- Senate has not done a report on the Dale to admit the charge of embezzle- ployees should have been interviewed and issue. I disagree: the facts in this case ment of which he was acquitted. The other White House staff who understood the are not in dispute. The reason you have attorney for Billy Dale criticized Mr. operations of the Travel Office should have a Claims Court proceedings is because Bennett because he said that Mr. Ben- been consulted. If dismissals were deemed you have disputed facts. In this case, nett accurately quoted the first sen- appropriate, a new structure should have the facts are not in dispute. tence of that letter which stated that been designed and readied for implementa- And these facts have been well-docu- Mr. Dale was prepared to enter a plea tion before any action was taken. Through- mented: no less than four reports have out, the process should have treated the of guilty to one single count under 18 Travel Office employees with sensitivity and been done on this issue, as well as 2 U.S.C. 654. However, Mr. Bennett, as decency.’’ At 22. years’ worth of investigations and well as my friend from Nevada on his As stated above, I too would have much hearings, and a debate on the floor of chart, chose to omit the sentence that preferred to have my staff carefully review this chamber that was filibustered immediately follows. That sentence the Travel Office and formulate a detailed when the bill was filibustered as a free- says that Mr. Dale would not admit to business plan for the new fiscal year. This standing bill. Two years’ worth of in- any intent to defraud or to perma- proved impossible, though, when pressure for vestigations and hearings on the House nently deprive anyone of the money action became irresistible. It forced me to accept hastily formulated plans for hasty, side has established the facts. The only that was represented by the checks he inadvisable action. reason to refer this case to the claims deposited in his personal account. This admission is imperative in order CONCLUSION court would be if the facts were in for the Government to have an actual I think all this makes clear that the Trav- question. The facts, in this instance, el Office incident was driven by pressures for are not even in dispute. plea. In order to take a plea, Mr. Dale action originating outside my Office. If I I might also add that the other side would have had to have admitted or thought I could have resisted those pres- has referred to a document that, for all pled guilty to defrauding the Govern- sures, undertaken more considered action, intents and purposes, is a privileged ment. Mr. Dale refused to do that. and remained in the White House, I certainly document that should never have been Now, the quote illustrated by the dis- would have done so. But after the Secret made public. It is the prosecutor’s tinguished Senator from Nevada Service incident, it was made clear that I memorandum. doesn’t give the full facts. Instead of must more forcefully and immediately fol- Somebody has violated the most sa- giving the full facts, the distinguished low the direction of the First Family. I was convinced that failure to take immediate ac- cred canons of ethics in giving a pros- Senator from Nevada is attempting to tion in this case would have been directly ecutor’s memorandum, which tells the retry Mr. Dale’s case on the Senate contrary to the wishes of the First Lady, Government’s side of the case. My col- floor. I think that it is wholly im- something that would not have been toler- leagues have read from it like it is proper, especially when a jury tried it S10306 CONGRESSIONAL RECORD — SENATE September 11, 1996 and Mr. Dale was acquitted within 2 public servants became the victims of that and not try to retry him here in hours. unjust and inappropriate abuse of Fed- the U.S. Senate. It is unseemly. This I will tell you one more thing. I am eral law enforcement by some White questionable use of the Federal crimi- going to refer the matter of the leaking House officials. I continue to be out- nal justice system created a situation of confidential documents by the Ad- raged by the arrogance of power dem- where Mr. Dale had to spend some ministration to the Office of Profes- onstrated by this Administration in $500,000 on attorney’s fees and even sional Responsibility, because the Jus- this matter. consider accepting a plea agreement, tice Department has acted irrespon- The way these individuals were fired when he had committed no crime, but sibly, or the prosecutor’s office has and investigated was unconscionable. with the express provision that he acted irresponsibly. Over the course of the last several would not plead guilty to embezzle- I oppose the Reid amendment that months, I have worked in a bipartisan ment. To make matters worse, the ad- would strike the provision to reim- effort to get a freestanding Billy Dale ministration went so far as to leak, in burse Billy Dale and to refer his case to reimbursement measure passed. I want- violation of its own regulations, a con- the claims court. As I reiterated time ed to pass this measure months ago so fidential letter in which Mr. Dale’s at- and again, reimbursement of these that President Clinton could put this torney discussed the notion of a plea legal fees simply remedies the grave ordeal behind him. He said he would agreement—something that goes on in miscarriage of justice that resulted in sign it. But the Senate has continued almost every criminal case where there the investigation of Billy Dale and the to be met with resistance by some is a chance of resolving a case by set- Members on the other side of the aisle. other former White House Travel Office tlement. employees, which they are willing to First, my colleagues wanted to offer a That is what was involved here in reimburse. They are unwilling to GATT amendment to the proposal and that matter. admit, as really gentlemen ought to, then they wanted to offer a minimum Mr. Dale’s attorney, on behalf of his that they have smeared this man, that wage amendment. Then we worked to- client, offered to end the case but ex- the White House deliberately did it, gether to advance their objectives on pressly stated that Mr. Dale would not that they were acting pursuant to Mrs. both the GATT and minimum wage is- admit that he converted or stole funds, Clinton’s demands, according to Wat- sues. We dealt with both of them in the the necessary elements for an embez- kins—that was a memorandum written Senate. zlement prosecution. Faced with the Having worked in a bipartisan man- at or near the time of the demands— ruinous legal costs, Mr. Dale’s lawyers ner, I thought the Senate would be able that the White House acted out of explored the possibility of a settle- to pass a freestanding bill without any greed, and that they put Mr. Dale ment, but not as an admission of guilt. additional delays. The last time we through a half-million dollars of legal The Department of Justice’s leaking of tried to bring up this bill, the distin- fees, not to speak of the loss of reputa- the plea agreement discussion was irre- guished minority leader objected, stat- tion, the bad publicity, the tremendous sponsible. But, this administration ing Mr. Dale had a fee arrangement strain of going through a criminal trial does have a troubling record of failing with his lawyers that would obligate to respect the privacy of individuals. when they knew he did nothing wrong. him to pay only part of his bill, which, Then, my colleagues on the other side for the record, is not true. As well, we The President himself unfairly re- of the aisle come here to the floor of were told that some Members on the peated information derived from this the Senate and claim that Mr. Dale en- other side of the aisle had additional unconscionable leak, suggesting that tered a plea of guilty. amendments—amendments which to the confidential discussions of a pos- Let me tell you something. I have this day we have not seen. sible plea bargain with the prosecutors been around courtrooms for many Accordingly, Senator SHELBY, the in the face of his own administration’s years of my life. I know a number of chairman of the Treasury-Postal Sub- outrageous abuse of the FBI should people who weren’t guilty that would committee took this initiative by in- somehow count against Mr. Dale. enter a plea to some really minor, less- corporating the Dale measure in this Mr. Dale and his colleagues recently er count so that they would not get appropriations bill. Yet, once again, found themselves in the news again bled to death with attorney’s fees, this is an effort to thwart a proposal to after trying to put the circumstances court costs, ulcers, bad health, restore Dale and his colleagues to the of this behind them. It was discovered ruination of the family, and 101 other position they were in before being at- that Mr. Dale’s FBI background file things that happen. Anybody that tacked by ‘‘friends’’ of President and was requested by the White House Per- doesn’t understand that has never been Mrs. Clinton and their allies on the sonnel Security Office 7 months after in a court of law, or at least doesn’t un- White House staff. he was fired. It now appears that the derstand, or just plain isn’t telling the Mr. Dale and his Travel Office col- Travel Office Seven were not only fired truth. leagues served at the pleasure of the unjustifiably but in some cases their For many months, the Congress and President. Some of the employees personal background file summaries the Nation believed President Clinton served as many as eight different Presi- were inappropriately requested and had supported Mr. Dale’s reimburse- dents, both Republican and Democrat. possibly reviewed. Some think the ment. In fact, I publicly commended They provided years of faithful service. whole 900 files that were improperly re- the President on numerous occasions For this service, they were fired based quested—and possibly reviewed; many for his equitable decision to sign the upon trumped up charges by political of which were reviewed—was as a re- bill if we would pass it up here. Unfor- ‘‘friends’’ of the President and the sult of trying to get Billy Dale. tunately, I understand the President First Lady. These loyal public servants So the invasion of privacy that these Clinton has chosen to retract his sup- were then investigated by the Federal individuals have had to endure contin- port for such reimbursement. That is Bureau of Investigation, the Depart- ued, and to have to put up with these why I call this a hypocritical White ment of Justice, and the Internal Reve- arguments here today, again I say it is House. Under these facts and cir- nue Service. The FBI was intimidated unseemly. cumstances, knowing what has tran- to do this by none other than Mr. KEN- What makes President Clinton’s op- spired, and knowing the hell they put NEDY at the White House, who no position to the reimbursement to Mr. these people through, not to be willing longer is there—and for good reason. Dale all the more astonishing is the to reimburse them is just unbelievable. Mr. Dale was subsequently indicted and fact that no less than 23 White House I am very disappointed that the prosecuted for embezzlement. On De- employees have requested Federal re- President has changed his position on cember 1, 1995, after 21⁄2 years of being imbursement of counsel fees in connec- this issue, because passing this legisla- investigated by Federal agencies, as tion with congressional or independent tion is the right thing to do. After well as incurring tremendous legal ex- counsel investigations into the White being fired, the Travel Office employ- penses, Mr. Dale was found not guilty House Travel Office, or Whitewater. ees were forced to seek legal represen- of all charges after only 2 hours of jury Among those who have requested reim- tation to defend themselves against a deliberation. bursement are Thomas (Mack) Federal criminal investigation in You would think our colleagues on McLarty, George Stephanopoulos, John which they had become targets. These the other side would give credibility to Podesta, Ricki Seidman, and Bruce September 11, 1996 CONGRESSIONAL RECORD — SENATE S10307 Lindsay —just to mention a few of the quested, pursuant to paragraph 5 of that di- privilege. Then, only the documents that the 23. rective, that the Committee hold its sub- Counsel’s Office had determined as a prelimi- A number of these requests have been poena in abeyance pending a final Presi- nary matter should be considered further for approved by the Clinton Justice De- dential decision on the matter. This request the conclusive assertion were presented to the Department for the required consulta- partment. For instance, Mr. Podesta. I was necessitated by the deadline imposed by the Chairman, the volume of documents that tion with the Attorney General. am glad they did in the case of Mr. Po- must be specifically and individually re- After this process was completed, the desta. And the Department has said, viewed for possible assertion of privilege, President made a conclusive assertion of ‘‘We are continuing to process requests and the need under the directive to consult privilege with respect to particular docu- and anticipate acting on some of them with the Attorney General, on the basis of ments. The Counsel to the President’s May in the near future.’’ that review, before presenting the matter to 30th letter informed the Committee of the I ask unanimous consent that a let- the President for a final determination. The President’s assertion of privilege with re- Chairman rejected the request and indicated spect to the specified documents and also ter to me from the Department of Jus- produced to the Committee the remaining tice dated September 6, and a memo- that he intends to proceed with a Committee vote on the contempt citation tomorrow.1 documents that had been subject to the May randum from the Department of Jus- The Attorney General’s letter went on to 8th protective assertion of privilege. The tice to Lisa Kaufman, Senior Investiga- advise the President as follows: Counsel’s May 30th letter also enclosed the tive Counsel of the Senate Judiciary ‘‘Based on these circumstances, it is my Attorney General’s May 23rd letter to the Committee, dated September 5, be legal judgment that executive privilege may President setting forth her opinion that ex- printed in the RECORD. properly be asserted with respect to the en- ecutive privilege could properly be asserted There being no objection, the mate- tire set of White House Counsel’s Office doc- with respect to the specified documents. Al- rial was ordered to be printed in the uments currently being withheld from the though the entirety of the letters from the Counsel to the President and the Attorney RECORD, as follows: Committee, pending a final Presidential de- cision on the matter. This would be a protec- General should be reviewed in order to un- U.S. DEPARTMENT OF JUSTICE, tive assertion of executive privilege designed derstand the rationale for the conclusive as- OFFICE OF LEGISLATIVE AFFAIRS, to ensure your ability to make a final deci- sertion of privilege, the essential separation Washington, DC, September 6, 1996. sion, after consultation with the Attorney of powers and confidentiality concerns un- Hon. ORRIN G. HATCH, General, as to which specific documents are derlying the claim are summarized in the Chairman, Committee on the Judiciary, U.S. deserving of a conclusive claim of executive following passage from the Attorney Gen- Senate. privilege.’’ eral’s letter to the President: DEAR MR. CHAIRMAN: This supplements our The Counsel to the President’s letter to ‘‘The Counsel to the President is appro- prior informal responses to your letter, the Committee Chairman the following day, priately concerned that the Committee’s de- dated August 21, 1996, which requested docu- May 9th, informed the Committee of the mand raises significant separation of powers ments and information about recent asser- President’s assertion of executive privilege: concerns and that compliance with it beyond tions of executive privilege and requests for the accommodations already reached with ‘‘Consistent with [the Attorney General’s reimbursement of private counsel fees aris- the Committee would compromise the abil- letter opinion], the President has directed ing from certain congressional and Independ- ity of his Office to advise and assist the me to inform you that he invokes executive ent Counsel inquiries. We have already pro- President in connection with the pending privilege, as a protective matter, with re- vided on an expedited basis the principal Committee and Independent Counsel inves- spect to all documents in the categories documents that are responsive to the first tigations. It would also have a chilling effect identified [previously in the letter], until two items of your request. This letter pro- on the Office’s discharge of its responsibil- such time as the President, after consulta- vides further information regarding those ities in future congressional investigations, tion with the Attorney General, makes a two items, as well as information and docu- and in all of its other areas of responsibility. final decision as to which specific documents ments regarding the remaining items. We I agree that the ability of the White House require a claim of executive privilege. *** hope that what we are providing today will Counsel’s Office to serve the President would ‘‘I hereby request that your Committee be sufficient to complete our response to be significantly impaired if the confidential- hold its request in abeyance until such time your request, but we would be pleased to ity of its communications and work-product as a Presidential decision as to executive work with Committee staff if you desire ad- is not protected, especially where the con- privilege has been made with respect to spe- ditional documents or information. fidential documents are prepared in order to The first two items of your request seek cific, individual documents.’’ assist the President and his staff in respond- documents and information concerning the The review and consultation process imple- ing to an investigation by the entity seeking President’s two assertions of executive privi- mented after the May 8th protective asser- the documents. Impairing the ability of the lege in May 1996 in response to a subpoena is- tion of privilege was as follows: The White Counsel’s Office to perform its important sued to the White House by the House Com- House Counsel’s Office conducted a specific functions for the President would in turn im- mittee on Government Reform and Over- review of all withheld documents and made pair the ability of you and future Presidents sight. This past Friday, August 30, 1996, we an initial determination as to which particu- to carry out your constitutional responsibil- provided your staff copies of the submissions lar documents should be considered further ities. to the House Committee on May 9 and May for inclusion in a conclusive assertion of ‘‘The Supreme Court has expressly (and 30, 1996, informing the Committee of the unanimously) recognized that the Constitu- President’s privilege assertions. The submis- 1 The background for the protective assertion of tion gives the President the power to protect sions include the Attorney General’s two let- privilege is described in letters from the White the confidentiality of White House commu- ter opinions to the President, dated May 8 House to the House Committee. The subpoena issued nications. This power is rooted in the ‘‘need by the House Committee in January of this year for protection of communications between and May 23, 1996, setting forth the legal basis sought a large number of confidential documents for the assertions. These documents should held by the White House Counsel’s Office. These in- high Government officials and those who ad- provide you with a good understanding of the cluded confidential deliberative, attorney-client and vise and assist them in the performance of purpose and scope of the privilege assertions. attorney work-product materials prepared by the their manifold duties.’’ United States v. Nixon. The first of the President’s assertions of Counsel’s Office in response to ongoing congres- 418 U.S. 683, 705 (1974). ‘‘A President and executive privilege, on May 8th, was a pro- sional and independent counsel investigations, as those who assist him must be free to explore tective assertion of privilege over the entire well as other confidential materials such as the per- alternatives in the process of shaping poli- group of confidential White House Counsel’s sonnel files of individual employees. In February, cies and making decisions and to do so in a the Counsel to the President met with the Commit- Office documents being sought by House tee Chairman seeking to negotiate an accommoda- way many would be unwilling to express ex- Committee at that time, to be effective only tion. We understand that the Counsel to the Presi- cept privately.’’ Id. at 708. Executive privi- for such time as was necessary for the review dent offered the Committee at that time the oppor- lege applies to these White House Counsel’s and consultations required to determine tunity to review all of the personnel files (which in- Office documents because of their delibera- whether to make a conclusive claim of privi- cluded Mr. Dale’s file), but raised objections to mak- tive nature, and because they fall within the lege for particular documents. The Attorney ing available certain deliberative, attorney-client scope of the attorney-client privilege and the General’s May 8th letter to the President and attorney work product materials and made an work-product doctrine, see Upjohn Co. V. accommodation proposal with respect to these ma- summarizes the circumstances necessitating terials. The Committee Chairman agreed to consider United States, 449 U.S. 383 (1981); Hichman v. the protective assertion: the proposals and respond, but no response was re- Taylor, 329 U.S. 495 (1947). Both the attorney- ‘‘The subpoena covers a large volume of ceived until May 2nd, when the Committee indicated client privileges and the work-product doc- confidential White House Counsel’s Office it would vote on May 9th on whether to hold the trine are subsumed under executive privi- documents. The Counsel to the President no- Counsel to the President in contempt of Congress, lege.’’ See Response to Congressional Requests tified the Chairman of the Committee today unless all withheld documents were turned over be- for Information Regarding Decisions made that he was invoking the procedures of the forehand. This one-week notice provided the White Under the Independent Counsel Act, 10 Op. House Counsel’s Office insufficient time to review standing directive governing consideration all of the materials and consider, together with the O.L.C. 68, 78 & n.17 (1986); Confidentiality of of whether to assert executive privilege, Attorney General, whether assertion of executive the Attorney General’s Communications in President Reagan’s memorandum of Novem- privilege with respect to particular documents was Counseling the President, 6 Op. O.L.C. 481, 490 ber 4, 1982, and that he specifically re- warranted. & n.17, 494 & n.24 (1982). S10308 CONGRESSIONAL RECORD — SENATE September 11, 1996 As for the particular focus of your inquiry, I hope that this information is helpful. Department of Justice determines in ad- the White House Counsel’s Office determined Please do not hesitate to contact me if we vance of its filing that a counterclaim is es- during the initial stage of the review process can provide additional assistance regarding sential to the defense of the employee and following the protective assertion of privi- this or any other matter. the employee agrees that any recovery on lege to exclude from further consideration Sincerely, the counterclaim will be paid to the United for the conclusive assertion of privilege the ANDREW FOIS, States as a reimbursement for the costs of set of personnel records it had earlier called Assistant Attorney General. the defense of the employee; to the Committee’s attention (see note 1, c. requests made under the Freedom of In- supra). It is our understanding that Mr. U.S. DEPARTMENT OF JUSTICE, formation or Privacy Acts or civil suits Dale’s personnel file, including FBI-related OFFICE OF LEGISLATIVE AFFAIRS, against the United States under the Freedom material, was among these personnel Washington, DC, September 5, 1996. of Information or Privacy Acts, or on any records. Because of this determination by To: Lisa Kaufman, Senior Investigative other basis, to secure documents for use in the Counsel’s Office, the personnel records Counsel, Senate Judiciary Committee; the defense of the client; were not presented to the Department for re- Karen Robb, Minority Staff Director, Sen- d. any legal work that advances only the view and they were among the documents ate Judiciary Committee. individual interests of the employee; and the White House produced to the House Com- From: Faith Burton, Special Counsel, Office e. certain administrative expenses noted in mittee on May 30th. Thus, there was never of Legislative Affairs. paragraph number 4 below. an occasion for the Department to be con- Re: Chairman Hatch’s Letter of August 21, The retained attorney is free to undertake sulted concerning the possibility of an asser- 1996. such actions as set for the above, but must tion of executive privilege with respect to This is to provide information on an expe- negotiate any charges with the client and FBI-related material contained in Mr. Dale’s dited basis in response to Lisa’s request in may not pass those charges on to the Depart- personnel file. Accordingly, we have no docu- connection with Chairman Hatch’s August ment of Justice. ments responsive to your request for ‘‘docu- 21, 1996, letter regarding requests for govern- The above list is not exhaustive. The De- ments discussing or analyzing whether exec- ment reimbursement of private counsel. This partment of Justice will not reimburse serv- utive privilege could be asserted with respect information, and three enclosed documents, ices deemed reasonably necessary to the de- to’’ such material. respond to the third and fourth items of the fense of an employee if they are not in the On Thursday, September 5, 1996, we pro- letter. interests of the United States. vided information and three documents re- The following FBI employees have re- To avoid confusion over whether the re- sponsive to the third and fourth items of quested representation with regard to con- tained attorney may bill the Department for your request. A copy of our memorandum to gressional inquiries regarding the White a particular service under this retention Committee staff is enclosed along with an House Travel Office matter: James Bourke, agreement, the retained attorney should additional copy of the accompanying docu- David Bowie, John Collingwood, Patrick ments. In summary, the following FBI em- consult the Justice Department attorney as- Foran, Richard Hildreth, Barbara King, ployees have requested representation with signed to the case, mentioned in the accom- Peggy Larson, Sharon MacGargle, Patrick regard to the White House Travel Office mat- panying letter before undertaking the serv- Maloy, Larry Potts, Thomas Renaghan, The- ter: James Bourke, David Bowie, John ice. rese Rodrique, Gregory Schwarz, Dennis Collingwood, Patrick Foran, Richard BILLABLE HOURS Sculimbrene, Cecilia Woods. The requests of Hildreth, Barbara King, Peggy Larson, Shar- Bourke, Bowie, Collingwood, Foran, Larson, The Department of Justice agrees to pay on MacGargle, Patrick Maloy, Larry Potts, MacGargle, Potts, Renaghan, Schwarz, the retained attorney for any amount of Thomas Renaghan, Therese Rodrique, Greg- Sculimbrene, and Woods have been approved. time not exceeding 120 billable hours per ory Schwarz, Dennis Sculimbrene, Cecilia The remaining requests have been held in month for services performed in the defense Woods. The requests of Bourke, Bowie, of the client. The retained attorney may use Collingwood, Foran, Larson, MacGargle, abeyance because we have been advised that no congressional depositions are anticipated the services of any number of attorneys, Potts, Renaghan, Schwarz, Sculimbrene, and paralegals, or legal assistants in his or her Woods have been approved. The remaining at this time. In addition, Sherry Carner and Janice firm so long as the aggregate number of requests have been held in abeyance because billable hours in any given month does not we have been advised that no congressional George initially requested reimbursement for private counsel fees; however, the House exceed 120 hours. The client is free, however, depositions are anticipated at this time. En- to retain the attorney, or members of the closed are FBI records regarding these re- Committee ultimately allowed them to be accompanied by FBI counsel, so their re- firm, to perform work in excess of 120 hours quests. per month so long as the firm does not bill In addition, Sherry Carner and Janice quests were withdrawn. the excess charge to the Department of Jus- George initially requested reimbursement Please contact me at 514–1653 if you have tice. for private counsel fees; however, the House any questions about this information. We are The Department will consider paying for Committee ultimately allowed them to be working on a more complete response to the services in excess of 120 hours in any given accompanied by FBI counsel, so their re- Chairman’s letter and will get it to you as month if the press of litigation (e.g., trial quests were withdrawn. soon as possible. We have completed consultation with the preparation) clearly necessitates the expend- White House and the Independent Counsel in CONDITIONS OF PRIVATE COUNSEL RETENTION iture of more time. The retained attorney accordance with established executive BY THE DEPARTMENT OF JUSTICE FOR REP- must make requests for additional com- branch consultation practices and, hence, we RESENTATION OF CURRENT AND FORMER FED- pensation to the Department in writing in are providing the following additional infor- ERAL EMPLOYEES advance of such expenditures. mation regarding the fourth and fifth items The following items and conditions shall LEGAL FEES of your request: The following White House apply to the retention of a private attorney’s The Department agrees to pay the retained employees requested reimbursement of coun- legal services by the Department of Justice attorney up to $99.00 per lawyer hour, plus sel fees in connection with congressional or to represent current and former federal em- expenses as described in paragraph 4 below. Independent Counsel investigations about ployees in civil, congressional, or criminal The charge for any services should not ex- the White House Travel Office or proceedings. ceed the retained attorney’s ordinary and Whitewater: Mary Beck, Lisa Caputo, Nelson NATURE OF RETENTION customary charge for such services. This fee Cunningham, Jonathan Denbo, Nell Doering, Subject to the availability of funds, the is based on the consideration that the re- Charles Easley, Dwight Holden, Carolyn Department of Justice agrees to pay an at- tained attorney has been practicing law in Huber, Ed Hughes, Bruce Lindsay, Kelli torney, or other members of his or her firm, excess of 5 years. McClure, Thomas McLarty, Douglas Matties, for those legal services reasonably neces- In the event the retained attorney uses the DeeDee Myers, Beth Nolan, Bruce Overton, sitated by the defense of a current or former services of other lawyers in his or her firm, John Podesta, Ashley Raines, Ricki federal employee (hereinafter ‘‘client’’) in or the services of a paralegal or legal assist- Seidman, Clifford Sloan, George civil, congressional, or criminal proceedings. ant, the Department agrees to pay the fol- Stephanopoulos, Kathleen Whalen, Jonathan The Department will not honor bills for lowing fees. Yarowsky. The requests of Beck, Holden, Po- services that the Department determines a. Lawyer with more than 5 years practic- desta, and Yarowsky have been approved. were not directly related to the defense of is- ing experience: $99.00 per lawyer hour The remainder are pending, but we are con- sues presented by such matters. Examples of b. Lawyer with 3—5 years of practicing ex- tinuing to process requests and anticipate services for which the Department will not perience: $79.00 per lawyer hour acting on some of them in the near future. pay include, but are not limited to: c. Lawyer with 0—3 years of practicing ex- With regard to the fifth item of your re- a. administrative claims, civil actions, or perience: $66.00 per lawyer hour quest, the Department of Justice has paid no any indemnification proceedings against the d. Paralegal or legal assistant: $39.00 per fees to date in connection with these mat- United States on behalf of the client for any hour. ters. The Department has agreed to pay pri- adverse monetary judgment, whether before The Department of Justice periodically re- vate counsel fees as indicated in our Septem- or after the entry of such an adverse judg- views the hourly rates paid to attorneys re- ber 5th memorandum to Committee staff in ment; tained to defend federal employees under 28 accordance with the enclosed sample reten- b. cross claims against do-defendants or C.F.R. § 50.16. If, during the period of this tion agreement. counterclaims against plaintiff, unless the agreement, the Department revises the September 11, 1996 CONGRESSIONAL RECORD — SENATE S10309 schedule of hourly rates payable in such deposition and hearing transcripts to the Government Reform and Oversight’s Inves- cases, the Department will pay revised rates billing statement. tigation of the White House Travel Office for services rendered after the effective date The retained attorney must itemize local matter will be in accordance with the appli- of the revision in rates. mileage costs (e.g., purpose of travel and cable statutes, regulations, and the fore- EXPENSES number of miles). The Department will pay going terms and conditions. This written in- strument, together with the applicable stat- While the Department will pay normal the standard government cost per mile rate utes and regulations, represents the entire overhead expenses actually incurred (e.g., for the use of privately owned vehicles. Before the Department of Justice will pay agreement between the Department of Jus- postage, telephone tolls, travel, transcripts), a bill, Department attorneys with sub- tice and the undersigned, any past or future the retained attorney must itemize these stantive knowledge of the litigation will re- oral agreements notwithstanding. charges. The Department will not accept for view it. If the retained attorney believes payment a bill that shows only a standard Mr. HATCH. Mr. President, here we that the detail of the legal bill would com- fee or percentage as ‘‘overhead’’. The re- have the Clinton administration quiet- promise litigation tactics if disclosed to De- tained attorney must describe, justify, and ly approving reimbursement of legal partment attorneys assigned to the case, the clear IN ADVANCE unusual or exceptionally expenses for its people at a time when retained attorney should list those particu- high expenses. lar billing items on a separate sheet of paper President Clinton opposes giving Mr. In addition, the retained attorney must de- Dale a ‘‘special preference.’’ That was scribe, justify, and clear in advance any con- with an indication of the specific concern. Department attorneys uninvolved with this said by the President in his Rose Gar- sultations with or retention of experts or ex- den conference of August 1, 1996. It was pert witnesses. case will independently review the sepa- The retained attorney must secure advance rated, sensitive portion of the bill solely to hypocritically said by the President approval to use computer-assisted research determine if payment is appropriate under under these circumstances. that involves charges in excess of $250.00 in a applicable standards. The reimbursement of the legal fees given month. The individuals reviewing the bills will not of Billy Dale, and other hard-working, The retained attorney must separately jus- discuss these items with the Department of honest civil servants wrongly fired Justice attorneys having responsibility for tify and obtain advance approval for services from the White House Travel Office, such as printing, graphic reproduction, or the case, nor will those responsible attorneys review the items in question. will right the wrong of an overreaching preparation of demonstrative evidence or ex- executive branch. You would think planatory exhibits. After Department attorneys complete the The retained attorney must itemize and review of a bill, the Department will notify they would want to get this mess be- justify in-house copying costs exceeding the billing counsel if the Department deems hind them. But, no. They come here $125.00 in a given month. The Department any item or items nonreimbursable or if any and besmirch representatives of the will pay the per page copying cost at the item or items require further explanation. other side. These people have been government rate set forth at 28 C.F.R. When further information or explanation is through hell enough. It is unseemly. § 16.10(2). needed, the Department will hold the entire This provision is also an attempt, I The retained attorney must itemize and bill until the retained attorney responds. might add, to make the Travel Office justify facsimile transmission costs exceed- Only after the Department receives and re- views the response will the Department cer- Seven whole at least financially by ing $150.00 in a given month. providing for their attorney’s fees. My The Department will pay expenses such as tify the bill in whole or in part for payment. secretarial overtime or the purchase of For that reason, the retained attorney must colleagues on the other side are willing books only in exceptional situations. The re- respond promptly. to let the others get reimbursed their tained attorney must obtain advance ap- Should the Department determine that attorney’s fees because they do not proval for such expenditures. any items are not reimbursable under this amount to much. They are also, I am Travel expenses may not include first class agreement, the billing counsel may request sure, in support of reimbursing the 23 service or deluxe accommodations. The re- further review of the Department’s deter- White House employees their attor- tained attorney may not bill time spent in mination. The retained attorney shall make ney’s fees, but not Mr. Dale. travel unless it is used to accomplish tasks such a written request to the appropriate Branch director at the address indicated in I believe reimbursing Mr. Dale and related to the litigation. The retained attor- all of the Travel Office employees is ney must specifically identify such tasks. the forwarding letter. The billing counsel The Department will not pay for meal must submit such requests for further review the least we can do after all that they charges not related to out-of-town travel. within 30 days, unless additional time is spe- have been through. The Department will not provide com- cifically requested and approved. Thereafter, I urge my colleagues on the other pensation for client or other entertainment. the Department will not reconsider its deter- side of the aisle not to hold up this The Department will not pay expenses for mination. measure any longer—no more excuses, meals incidental to overtime. BILLING ADDRESS no more delays. Let us get this legisla- The Department will not pay for expenses The retained attorney should submit all tion passed today and put an end to it that can normally be absorbed as clerical bills to: once and for all. overhead, such as time spent in preparing Director, Office of Planning, Budget and I appreciate the Clinton administra- legal bills and filing papers with the Court. Evaluation, Civil Division, United States De- The retained attorney must separately list tion’s desire to cover the legal fees of partment of Justice, Washington, D.C. 20530, those who have been loyal to the Presi- and justify messenger services. Attn: Room 7038 Todd Building. The retained attorney must enumerate the dent, and I want to point out that a expenses incurred for hiring local counsel by PROMPT PAYMENT mechanism exists for the Department rate, hour, and kind of service. These hours The Prompt Payment Act is applicable to of Justice to consider doing so, too. must fall within the 120-hour monthly maxi- payments under this agreement and requires That is OK. Mr. Dale is not so fortu- mum. The hourly rates paid to local counsel the payment of interest on overdue pay- nate. He also was loyal to a number of may not exceed the rates listed in paragraph ments. Determinations of interest due will Presidents, including this one. But his be made in accordance with provisions of the 3 above. reward is to be put through an un- FORMAT OF BILLS Prompt Payment Act and Office of Manage- ment and Budget Circular A–125. seemly, vicious, miserable, costly The retained attorney must submit bills on criminal indictment and trial. a monthly basis, stating the date of each GAO REVIEW To indict somebody, all you have to service performed; the name of the attorney Periodically, the Department of Justice show is reasonable suspicion. To con- or legal assistant performing the service; a may ask the retained attorney to submit description of the service; and the time in copies of the time sheets to the General Ac- vict them, you have to show guilt be- tenths, sixths, or quarters of an hour, re- counting Office (GAO) for purposes of audit- yond a reasonable doubt. And that is quired to perform the service. Because of the ing the accuracy of corresponding monthly where the White House, the Justice De- limitation on reimbursable hours, a bill bills, copies of which the Department will partment, and the prosecutors failed. must include all services rendered in a given forward directly to GAO. And they rightly failed, because Mr. month. The Department will not consider TERMINATION Dale was not guilty. subsequent bills for services rendered in a The Department of Justice reserves the As I noted, the Clinton White House month for which it has already received a right to terminate its retention agreement staff is certainly availing themselves bill. with the retained attorney at any time for of the current avenues for reimburse- In describing the nature of the service per- reasons set forth in 28 C.F.R. § 50.16. ment. But for the Clinton administra- formed, the itemization must reflect each litigation activity for which reimbursement ACCEPTANCE tion to oppose the reimbursement of is claimed. I agree that my retention by the Depart- Mr. Dale’s legal fees at the same time The retained attorney must attach copies ment of Justice to represent John Yarowsky White House staff are seeking reim- of airline tickets, hotel bills, and bills for in connection with the House Committee on bursement through the Department of S10310 CONGRESSIONAL RECORD — SENATE September 11, 1996 Justice is transparent. It is inconsist- the administration. Many of them had ployees of the White House seeking re- ent, to say the least. And I might add worked for both Democratic and Re- imbursement. My point in raising the it is hypocritical. It is hypocritical. publican Presidents. Were it not for issue at all is to expose the hypocrisy And it is amazing to me that the peo- their positions as employees of the of the Clinton administration. The ple at the White House don’t have the Federal Government, and because they Clinton White House victimized Billy guts to admit it and just say, ‘‘Let us found themselves in the unfortunate Dale and his colleagues which lead to do what is right here.’’ position of having jobs coveted by the political prosecution of Mr. Dale To me there isn’t any question. They friends of the Clintons, they would not leaving him with $500,000 in legal fees. can’t show any wrongdoing by Billy have been subject to a Federal criminal Even the White House has admitted it Dale. To try to besmirch him on the investigation. improperly handled the White House Senate floor in a double-jeopardy type The legal fees placed on these mid- Travel Office matter. In fact, a docu- of situation by bringing up what you dle-class public servants have been as- ment produced to the Senate Judiciary think is one side of the case facts after tronomical. The monetary damage Committee from the White House, a jury of his peers acquitted him, I they sustained is quantifiable. This which appears to be talking points for have to tell you, it is unseemly. More- provision will not cover the emotional a meeting with the House Democratic over, anybody would consider a guilty damage of this abuse of power by the Caucus, states the following, ‘‘You all plea to something that does not Clinton administration. Nor will it re- may dimly remember the Travel Office amount to very much if they could get turn to these faithful Government em- affair: in which a number of White a load of hundreds of thousands of dol- ployees their reputations or faith in House staff—many immature and self- lars of additional legal fees off their the Government they had served. It promoting—took impulsive and fool- backs. Anybody would do that. To sug- merely covers the attorneys’ fees and hardy actions to root out problems at gest otherwise is just not right. Time costs associated with the criminal in- the beginning of the Clinton adminis- after time, I have seen defendants con- vestigation. tration and to then gallantly rec- sider plea agreements in unjust pros- According to Attorney General Reno, ommend that they take over its oper- ecutions, and this was one of them. the White House has the authority to ation.’’ Now, the White House has the This provision provides for payment seek representation from the Depart- chutspah to authorize the payment of of the legal expenses incurred by Billy ment of Justice for Government em- fees to its people and not to Billy Dale. Dale, Barney Brasseaux, John ployees who have been called to testify I find this astonishing. Dreylinger, Ralph Maughan, John regarding matters within the scope of In a press conference on November 16, McSweeney, and Gary Wright incurred their employment. Customarily, rep- 1995, months after the Travel Office after being terminated in May 1993, resentation of these employees is han- employees had been fired, President amid false allegations made by Presi- dled by attorneys for the agency for Clinton told the American public that dent Clinton’s political cronies. which the employee works. There are he regretted the hardship that Mr. Dale Although Mr. Dale suffered the great- instances however, in which it would and his colleagues had endured because est financial loss, half a million dol- be inappropriate for agency attorneys of their abrupt firings. He also said lars, the remaining six employees col- to represent employees of the agency. that it appeared the White House did lectively incurred about $200,000 in In these cases, the Department of Jus- not handle the Travel Office dismissals their own defense. The appropriations tice has authority to provide reim- appropriately. This was, in my opinion, bill for the Department of Transpor- bursement for the fees associated with a genuine attempt by the President to tation for fiscal 1994 provided approxi- retaining private counsel. With respect take responsibility for what happened mately $150,000 in reimbursement of to the Travel Office and FBI files and to these loyal Government employees. legal fees. This provision would provide Whitewater investigations, 23 White Then on January 30, 1996, White the balance. House employees have requested reim- House spokesman Mr. McCurry stated, This provision would not provide for bursement for the legal fees of their ‘‘Yes, and he would sign it’’, referring compensation of all expenses associ- private attorneys. to Mr. Clinton’s intent to sign this ated with the investigation into the Should a White House employee want measure. Again, just prior to the re- Travel Office matter, such as legal to receive reimbursement for their cent press conference in the Rose Gar- costs incurred in preparation for ap- legal fees for their cooperation in pro- den on August 1, 1996, White House pearing before Congress. But it would viding testimony, there is a relatively Press Secretary, Mr. Toiv, reaffirmed provide for attorneys’ fees and costs simple procedure they must follow. that President Clinton would sign leg- that resulted from these seven men de- First, all bills for legal fees for private islation to reimburse the former Travel fending themselves against criminal counsel must be submitted to the Office employees. He stated, and I charges. White House Counsel’s Office. This in- quote, ‘‘I would just repeat that when The Travel Office employees will formation is then forwarded to the the bill arrives on the President’s desk, have 120 days after this legislation is Civil Division of the Justice Depart- he would sign it.’’ enacted to submit verification of valid ment with a written recommendation Despite the administration’s previous legal expenses. as to the merit of the request. The De- position, the President said at the Au- Reimbursement is limited up to partment will then, either approve or gust 1, 1996, press conference in re- $500,000, and does not include fees asso- deny the request consistent with their sponse to a question regarding whether ciated with appearances before or in own guidelines. That is the extent of it. he would keep his word and sign this preparation of congressional investiga- As I stated previously, 23 White bill, ‘‘I didn’t—I never gave my word on tions or hearings. House employees have requested Fed- that’’. He then stated that an error had After the former Travel Office em- eral reimbursement of counsel fees in been made by his spokesman, ‘‘I have ployees were fired due to charges of fi- connection with congressional or inde- made it clear to Mr. McCurry what my nancial irregularities by political prof- pendent counsel investigations into the position is on this. And if an error was iteers, they were investigated by the White House Travel Office or made by my spokesman, I’m sorry, but Federal Bureau of Investigation, the Whitewater. A number of these re- I have not broken my word to any- Department of Justice, and the Inter- quests have been approved by the Clin- body.’’ nal Revenue Service. Mr. Dale was sub- ton Justice Department, and the De- After President Clinton’s apparent U- sequently indicted and tried as a result partment has said: ‘‘we are continuing turn on this issue, in an interview with of the investigation and after incurring to process requests and anticipate act- CNN on August 26, 1996, President Clin- a tremendous legal debt for his defense, ing on some of them in the near fu- ton took the extraordinary step to Mr. Dale was acquitted on all charges. ture.’’ state that individuals serving in his ad- The other Travel Office employees also Today, I am not addressing whether ministration have been ruined by pure, incurred legal expenses for their own the reimbursement of legal fees for in- naked, raw politics’’. He then went on defenses. dividuals appearing before Congress is to say that he would pursue every ave- None of these former Travel Office appropriate or not. In fact, if the law nue, including raising money himself, employees held high-level positions in permits it, I have no objection to em- to pay for the legal expenses of his September 11, 1996 CONGRESSIONAL RECORD — SENATE S10311 aides. He then continued to say in ref- sheer and utter abuse by the executive Mr. President, those on the other erence to his aides, ‘‘Do I feel terrible branch. By politicizing the Department side have indicated that this bill which about the completely innocent middle- of Justice and the FBI, the administra- reimburses Billy Dale is unprece- class people who have been wrecked fi- tion literally ruined the livelihood and dented. I would like to point out that nancially by this? I certainly do. But I reputation of seven hard-working civil the House passed this bill with over- didn’t abuse them. And it’s high time servants. whelming bipartisan support, and, de- that the people who abuse have to take I believe a distinction should be spite the bipartisan support of the responsibility for what they do’’. made between reimbursement of fees House, some of my colleagues on the I must admit that I am disappointed for appearances before Congress and other side of the aisle in this Chamber and shocked by the steps that this ad- those involving the misuse of the judi- oppose this provision stating it sets a ministration has taken to smear the cial system for purely political pur- bad precedent. Travel Office employees. The Presi- poses. This provision does not allow Let me just quickly quote Congress- dent’s recent comments are in direct payment of legal fees in connection man BARNEY FRANK, a well-respected contradiction to his previous state- with any appearance before Congress. Democrat, a memorandum of the Judi- ments expressing concern for the Accordingly, within the parameters of ciary Committee over there, a person former Travel Office employees. He is the provision, Whitewater witnesses with whom I work on the Judiciary willing to assist his aides, and criticize could not be reimbursed. Appearing be- Committee in the Senate as well about the Congress for pursuing an investiga- fore Congress simply would not be cov- this very issue. He said, ‘‘This neither tion into wrongdoing by his adminis- ered by this provision. sets a precedent nor precludes some- Unlike Travelgate, however, the tration, but will not accept responsibil- one. Any new case will be judged on the Whitewater matter has not been com- ity for the wrongful treatment of Billy same merits.’’ pleted. Many questions have been left Dale? Give me a break. I agree with Congressman FRANK. unanswered in the Whitewater inves- In the embarrassment of having lost After all, Congress is not bound by the a case so blatantly politically moti- tigation and an Independent Counsel is still trying to determine whether or actions of another Congress. vated, individuals within the Depart- I might also add that in the Trans- not there have been any criminal viola- ment of Justice chose to leak a docu- portation appropriations bill for fiscal tions. Any perpetrators of a coverup ment revealing that Mr. Dale consid- must be brought to justice. Let us not year 1995, five of the Travel Office ered accepting a plea bargain. Notably, forget it was just this past January Seven had some of their legal expenses as the Justice Department is fully when Rose law firm billing records reimbursed. Since receiving reimburse- aware, and is articulated in their own mysteriously surfaced within the resi- ment for their legal expenses at that regulations, information regarding dence of the White House. Individuals time, these individuals have incurred plea negotiations is confidential, not with access to this area of the White more legal debt. Not included in the for public dissemination. I can only House must be questioned to find the fiscal year 1995 Transportation appro- sympathize with Mr. Dale, who after truth. The American people deserve no priations bill were the legal expenses of years of constant invasion of his and less. Billy Dale. The provisions of this bill his family’s privacy, and incurring Unlike the witnesses in the allow reimbursement for these addi- enormous expenses, considered a settle- Whitewater hearings, these former em- tional fees, and for Mr. Dale. ment in the hopes of ending this night- ployees of the White House Travel Of- When the Transportation appropria- mare. Some of my colleagues have sug- fice were targeted by the Office of the tions bill was passed, no one made a gested that Mr. Dale admitted his cul- President. They were victims of an ad- fuss. These individuals were reim- pability by considering a plea agree- ministration that politicized the De- bursed, as they deserved to be. Billy ment. So too, has President Clinton, a partment of Justice and the FBI. In Dale deserves the same treatment. former State attorney general and law contrast, the Whitewater witnesses After all, he was sacked just like all professor. Now, we have a ‘‘Dear Col- have not been subjected to such perse- the others, sacked unjustly. league’’ letter distributed yesterday cution, and were questioned in the I have heard arguments that if we are which also disseminates this confiden- hope of shedding light on the details of to reimburse Billy Dale even after tial information. The facts are, how- the Clinton’s investment. These wit- being indicted, the floodgates would be ever, that Mr. Dale never agreed to nesses certainly had information perti- opened, and we would be obligated to admit to committing the essential ele- nent to the investigation, but they reimburse anyone who was inves- ments necessary for an embezzlement were not the target of the investiga- tigated by the Federal Government and prosecution. He simply agreed to settle tion. The individuals in the Travel Of- found innocent of all charges. the case without an admission of guilt. fice matter were victimized not be- I do not believe that is the case, nor Any suggestion that such a strategic cause they happened to come into con- do I believe that this White House or tactic equates to an admission of guilt tact with an investigation as many or- any White House in the future is going is outrageous and is yet just a further dinary citizens could and is clearly the to do the outrageous smearing that oc- attempt to smear Mr. Dale’s reputa- case with the Whitewater witnesses, curred in this case. This is a unique tion. but because they held positions in the case that involved the executive Department of Justice guidelines spe- Government that allowed them to be- branch at the highest level doing this cifically state that information which come the subject of an investigative to decent, honorable, honest people ‘‘tends to create dangers of prejudice probe. I think this provision affirms who have been vindicated by the courts without serving a significant law en- that it is appropriate to compensate of law. forcement function,’’ should not be re- these people who have been put to such As we are all aware, Congress can de- leased to the public. The disclosure of a expense under these special cir- cide the merits of all claims on a case- plea agreement clearly fits within this cumstances. by-case basis. By passing this provi- definition. It is troubling to me that Moreover, the victims in the sion, we are not setting a precedent as the Department of Justice, The Presi- Travelgate matter are clear and identi- is done in a court of law. We are simply dent, and some of my colleagues in the fiable. Mr. Dale and the six other passing a judgment based on the cir- Senate continue to ignore this. former employees of the White House cumstances of this case that the firing Whitewater is the investigation of Travel Office had their reputations of the Travel Office Seven was unjust the possibility of the Clintons using marred by the Clinton administration. and the manner by which they were in- their political positions for personal They endured investigations by the vestigated was inappropriate and un- gain in a virtually risk-free invest- FBI, the IRS, the Department of Jus- warranted. ment, and then, engaging in damage tice, as well as that of Peat Marwick. The Administration erred in the way control activities. There has been no Their families were placed under the they dealt with the Travel Office situa- credible allegation that the Govern- strain of having been investigated for tion. By reimbursing the legal expenses ment somehow abused the Whitewater 21⁄2 years, all without a single proven of Billy Dale and his colleagues, Con- participants. By contrast, the instance of wrong-doing on the part of gress would be taking a step to correct Travelgate investigation is a case of the Travel Office employees. the administration’s error in judgment. S10312 CONGRESSIONAL RECORD — SENATE September 11, 1996 Now, reimbursing legal expenses is First, I would like to point out that (2) VERIFICATION REQUIRED.—The Secretary not wholly unprecedented, I might add. H.R. 2937 is not a private relief bill. shall pay an individual in full under para- Although the circumstances are some- This bill was passed through the House graph (1) upon submission by the individual what different, Hamilton Jordan is an on the Suspension Calendar, which of documentation verifying the attorney fees and costs. example of someone who, in my opin- handles public bills. There is a separate (3) NO INFERENCE OF LIABILITY.—Liability ion, was unfairly investigated after calendar that deals with private relief of the United States shall not be inferred being accused of cocaine use. After an bills. The CONGRESSIONAL RECORD re- from enactment of or payment under this independent counsel was appointed and flects the fact that H.R. 2937 was on a subsection. all the evidence gathered, Mr. Jordan public bill calendar, and there was a (b) LIMITATION ON FILING OF CLAIMS.—The was cleared of all charges. Congress rollcall vote when it finally passed ear- Secretary of the Treasury shall not pay any then decided to reimburse Mr. Jordan’s lier this year. claim filed under this section that is filed legal fees because the charges lodged Second, a private relief bill must later than 120 days after the date of the en- actment of this Act. against him were found to be baseless. name all those making a claim. H.R. (c) LIMITATION.—Payments under sub- Because unjust situations sometimes 2937 does not name the former Travel section (a) shall not include attorney fees or arise, the independent counsel statutes Office employees specifically. Even if costs incurred with respect to any Congres- have provisions designed to rectify H.R. 2937 was a private relief bill, how- sional hearing or investigation into the ter- these grievances. Why can’t my col- ever, congressional referrals are typi- mination of employment of the former em- leagues treat this matter as decently cally made to the Court of Claims only ployees of the White House Travel Office. as those of us who were then in the if the facts of the claim are com- (d) REDUCTION.—The amount paid pursuant Senate treated Hamilton Jordan? Why plicated and unclear. to this section to an individual for attorney fees and costs described in subsection (a) is it we have to go through this? Would In this case, numerous reports as shall be reduced by any amount received be- it not be in the best interests of the well as 2 years’ worth of investigations fore the date of the enactment of this Act, President to put this behind us? and House hearings have exposed the without obligation for repayment by the in- The White House was able to bring facts in this case. The facts are very dividual, for payment of such attorney fees the power of Federal law enforcement clear, and there is very little dispute to and costs (including any amount received to bear on the Travel Office employees, what occurred. Additionally, the only from the funds appropriated for the individ- and the facts show that they did it im- other reason to refer the matter to the ual in the matter relating to the ‘‘Office of properly for purposes of greed. Claims Court would be if there was a the General Counsel’’ under the heading ‘‘Of- fice of the Secretary’’ in title I of the De- In response to the claim that such a dispute as to the amount of money payment is unprecedented, I say that partment of Transportation and Related that is being claimed. Agencies Appropriations Act, 1994). the circumstances by which Billy Dale Once again, Mr. Dale and his former (c) PAYMENT IN FULL SETTLEMENT OF and the others were fired is unprece- colleagues submitted their bills to the CLAIMS AGAINST THE UNITED STATES.—Pay- dented, and it should be treated as House Judiciary Committee, and those ment under this section, when accepted by such. We are not talking about some amounts were included in the House an individual described in subsection (a), low-level bureaucrat in the halls of the bill. There is no dispute about the bills shall be in full satisfaction of all claims of, bureaucracies of this city. We are talk- that have been submitted. In short, or on behalf of, the individual against the ing about right in the halls of the United States that arose out of the termi- there is no reason why my colleagues nation of the White House Travel Office em- upper levels of the White House itself should want to remove this language ployment of that individual on May 19, 1993. where this injustice was perpetrated. from the Treasury-Postal bill on the SEC. 529. None of the funds made available The circumstances by which Mr. Billy basis that the facts are unclear. We in in this Act may be used by the Executive Of- Dale and the others were prosecuted this body and the administration know fice of the President to request from the Fed- and were investigated and charged and what the facts are and we know where eral Bureau of Investigation any official targeted, and prosecuted in Dale’s case, the blame lies. background investigation report on any indi- were unprecedented. Mr. President, I hope our colleagues vidual, except when it is made known to the Federal official having authority to obligate This is a meritorious case for reim- will vote to support the Hatch amend- bursement. It is as meritorious as any or expend such funds that—— ment and will vote to turn down this (1) such individual has given his or her ex- I have ever seen. What was done to attempt to throw this matter into the press written consent for such request not these people never should have oc- Court of Claims. There is nothing in more than 6 months prior to the date of such curred in this manner. House Repub- dispute here. I think everybody who is request and during the same presidential ad- licans and House Democrats recognize fair will acknowledge that. ministration; or this fact. There was not an attempt to Might I ask, how much of my time (2) such request is required due to extraor- indict him all over, convict him again remains? dinary circumstances involving national se- curity. after a jury acquitted him, or go The PRESIDING OFFICER. The Sen- through the facts in a further attempt ator has 20 minutes and 35 seconds re- The PRESIDING OFFICER. The ma- to smear Mr. Dale. The fact is, the maining. jority manager of the bill is recog- media knew he was honest, and every- Mr. HATCH. I reserve the remainder nized. body else knew he was honest, and, of my time. Mr. SHELBY. Mr. President, the sub- committee has included the $500,000 for above all, a jury of his peers found him AMENDMENT NO. 5257, AS MODIFIED to be honest. What was done to these Mr. HATCH. Mr. President, if I could, the reimbursement of the Travel Office people should not have been done. pursuant to the UC, I send a modified employees terminated by the White We had bipartisan passage in the amendment to the desk. House in May 1993. And why? I want to House—we ought to have that here. I The PRESIDING OFFICER. The Sen- explain that briefly. think everyone in this body recognizes ator has that right. Over 3 years later, we are attempting that fact. If we in Congress are to reim- The amendment (No. 5257), as modi- to offset the cost of the tremendous burse legal fees on a case-by-case basis fied, is as follows: legal fees that these individuals, I be- when the case merits it, as this one lieve, were wrongfully forced to as- At the appropriate place, insert the follow- does, then it is the right thing to do, ing: sume. The provision here would pay and I have never, never seen a case SEC. . (a) REIMBURSEMENT OF CERTAIN the attorney’s fees and costs they in- more worthy than this one that could ATTORNEY FEES AND COSTS.— curred with respect to that termi- come before the Senate. I can tell some (1) IN GENERAL.—The Secretary of the nation. other injustices that were certainly Treasury shall pay from amounts appro- Why do we need this legislation? In terrible that should be straightened priated in title I of this Act under the head- October 1993, as part of the fiscal year out, too, but nothing like this. ing, ‘‘Departmental Offices, Salaries and Ex- 1994 transportation appropriations bill, It has also been suggested by my col- penses’’, up to $499,999 to reimburse former the Congress authorized the payment employees of the White House Travel office leagues on the other side of the aisle whose employment in that office was termi- of $150,000 for the legal bills of the five that H.R. 2937 is a private relief bill, nated on May 19, 1993, for any attorney fees White House Travel Office employees and typically these bills are referred to and costs they incurred with respect to that who, after being summarily fired, were the Court of Claims for factfinding. termination. placed on administrative leave and September 11, 1996 CONGRESSIONAL RECORD — SENATE S10313 later transferred to other Federal agen- No. 5, the seven long-time career em- Mr. Dale of accepting a plea bargain. cies. This sum, $150,000, was insuffi- ployees were never given an oppor- Talk about insult to injury. cient to completely cover the legal tunity to respond to the allegations or This decent, loyal employee is set-up costs of the five employees and did not answer the accusations made against by the White House, and then when he address the attorney’s fees of the other them—they were given minutes notice is acquitted in a court of law by a jury two fired Travel Office employees be- of their termination, and almost imme- of his peers, the President’s personal cause they were still under investiga- diately escorted off the White House attorney gets on national television tion. Both employees have since been premises by, none other than Craig and implies that Mr. Dale is a criminal exonerated of any wrongdoing, and I Livingstone, the head of White House that tried to get off easy. believe they deserve similar reimburse- Personnel Security. Why is the White House so intent on ment for the extraordinary and unnec- No. 6, the GAO found in its May 1994 destroying Billy Dale? essary legal expenses they were re- report that while senior White House The White House has every reason to quired to incur. Mr. Dale’s attorneys’ officials said the terminations were be embarrassed by their actions, every costs alone are close to half a million based on ‘‘findings of serious financial reason to want to avoid talking about dollars. management weaknesses, we noted Billy Dale—but it is an absolute out- This is a unique case, to say the that individuals who had personal and rage, that the President of the United least. Each claim against the United business interests in the Travel Office States would seek to use this man as a States should be judged on a case-by- created the momentum and ultimately foil for his own political gain. It is case basis, and it is not the intent of led to the examination of the Travel wrong. It is unjust. It is unkind, un- this provision in this bill to set a Office operations.’’ charitable, and indecent. precedent that in every case the pay- No. 7, the GAO also agreed with the The Senators’ amendment, Senators ment of attorney’s fees and costs is jus- White House’s own Management Re- REID and LEVIN, is, therefore, mis- tified. view of the Travel Office affair that placed and I urge my colleagues to vote What is the justification of the attor- ‘‘the public acknowledgment of the against it. ney’s fees here? I believe the firing of criminal investigation had the effect of I yield the floor. the White House employees, and espe- tarnishing the employees’ reputations, The PRESIDING OFFICER. Who cially Mr. Dale, was one of the most and the existence of the criminal inves- seeks recognition? appalling abuses of power that I have tigation caused the employees to re- Mr. REID. Mr. President, it is my un- ever seen, because I think it shows tain legal counsel, reportedly at con- derstanding the minority leader wishes what little regard the White House has siderable expense.’’ to speak at this time. I suggest the ab- had for the plight of these loyal, dedi- I am saddened to see that the Presi- sence of a quorum and indicate the cated public servants and their fami- dent went back on his commitment to time not run that is left for the Sen- lies. support reimbursing the Travel Office ator from Utah and the Senators from And it was totally unnecessary, employees. In January of this year, Michigan and Nevada. He should be which makes it even worse. The White Mike McCurry, the President’s spokes- here momentarily. House could have fired the Travel Of- man and Press Secretary made it clear The PRESIDING OFFICER. The fice without as much as a whimper. that the President was not only sorry clerk will call the roll. And yet, the White House felt com- for the treatment of Mr. Dale and his The bill clerk proceeded to call the pelled to devise a strategy that would colleagues, but that he would sign a roll. blunt the claims of nepotism and polit- bill to reimburse them for their legal Mr. DASCHLE. Mr. President, I ask ical motivation that would certainly costs. unanimous consent that the order for follow replacing a nonpartisan, career It appears now that the President in- the quorum call be rescinded. Travel office with Little Rock business tends to make a political statement The PRESIDING OFFICER. Without associates, friends and relatives. out of their misfortune. Upset with objection, it is so ordered. Now, after several years of investiga- congressional investigations into Mr. DASCHLE. Mr. President, I am tion that has sometimes raised issues Whitewater and the Travelgate matter dumbfounded that we are tonight de- of constitutional dimension—claims of itself, he now intends to hold these bating whether or not we should, for executive privilege, contempt cita- long-time career employees hostage to the first time in history, pay the attor- tions—the facts make clear that: his political posturing. ney’s fees for an individual who was No. 1, a concerted effort was under- It was not enough that they were properly indicted and properly pros- taken in the White House and by close used as an excuse to give his friends ecuted. Is the U.S. Congress going to friends and associates of the President and relatives Government jobs. start reimbursing every Federal de- and First Lady to take over the Travel It was not enough that these employ- fendant who is acquitted? If the answer Office. ees were accused of criminal conduct is no, then I must question why are we No. 2, it was not sufficient to simply without a shred of evidence, other than being asked to do so in this case. There fire the career civil servants serving in the allegations of a 24-year-old rel- is no argument about reimbursing fees the Office, which it was the prerogative ative. for those who are not indicted. The of the White House to do. Instead, It was not enough that these employ- only argument is about paying the fees White House staff colluded to raise ees were subject to IRS audits, that for one individual who was, again, false claims of criminal wrongdoing their FBI files were improperly re- properly indicted and properly pros- against the Travel Office staff to jus- quested as late as seven months after ecuted. tify what was purely a political move they were fired. Recall that it was Unfortunately, instead of addressing to benefit friends and associates of the Craig Livingstone who escorted the the issues the American people are President and First Lady. Travel Office employees out of the really concerned about—job security, No. 3, the White House improperly White House in May of 1993. We are personal security, retirement secu- used the FBI to initiate a criminal in- now supposed to believe that he was rity—some of our Republican col- vestigation against the White House not aware that Billy Dale was not leagues have decided to raise this issue Travel staff based solely on the allega- working in the White House when his in a blatant attempt to score political tions of the President’s cousin, Cath- own office requested Mr. Dale’s FBI file points in a Presidential election year. erine Cornelius, who admittedly in- 7 months later in December of that They are willing to spend $500,000 of tended to run the White House Travel year? taxpayer dollars in an attempt to em- Office once the career employees were It was not enough that Mr. Dale was barrass the White House. In this era of ousted. acquitted after only 2 hours of delib- tight budgets and competing priorities, No. 4, the White House publicly made eration by the jury. Two hours. The we cannot afford to waste that kind of allegations of criminal wrongdoing and man was acquitted. And what was the money to pay for Republican attack financial mismanagement before an ac- White House response? What was the ads from the Senate floor. There is ab- counting audit was ever completed on President’s personal lawyer doing on solutely no precedent for this legisla- the Travel Office. all the morning talk shows? He accused tion to pay Billy Dale’s legal expenses. S10314 CONGRESSIONAL RECORD — SENATE September 11, 1996 We have never agreed to pay the floor in a way that is certainly emi- I have consumed in the presentation of legal expenses for anyone who is in- nently reasonable, that recognizes past my remarks be taken from my leader dicted. The Independent Counsel Act precedent, that recognizes the impor- time. provides for the reimbursement of legal tance of a procedure that has been used The PRESIDING OFFICER. The expenses for a person who is not in- over and over again in circumstances Democratic leader has that right. dicted. Billy Dale, however, was in- just like this. Mr. DASCHLE. I thank the Chair. dicted and was prosecuted by the Jus- Let us send, as they suggest in their Mr. LEVIN. Mr. President, par- tice Department, not the independent proposal, this issue to the neutral arbi- liamentary inquiry. I understand there counsel. Moreover, there is absolutely ter, the U.S. Claims Court, to deter- is time for debate in the morning. Is no evidence that Billy Dale was in- mine whether it is appropriate to reim- that debate part of the time which the dicted unfairly. Mr. Dale never filed burse Mr. Dale. Why not do what we Chair just indicated Senator REID has any motions or raised any legal objec- have done in the past? Why not use the left? tions to his indictment, and I am un- procedure that we have in law that will The PRESIDING OFFICER. There aware of any finding by any court that allow us a fair and objective hearing, a has been no order entered yet with re- the indictment was somehow improper fair and objective analysis as to wheth- spect to the debate tomorrow. or motivated by political purpose. Nor er or not this ought to be done? Mr. HATCH. As I understand it, there have we held any hearings on the mat- The claims court can hold hearings will be 15 minutes divided equally, and ter. There is no factual basis for violat- to obtain all the facts outside of the I think that is the way we should go. ing the Senate precedent and giving world of partisan politics 2 months be- Mr. LEVIN. I also had the same un- half a million dollars to Billy Dale or fore a Presidential election and render derstanding. I am not sure whether anyone else. a recommendation that will not be that was part of a UC. I ask Senator There are also undisputed facts about tainted by partisan motivations and REID if he will yield 5 minutes to me. this matter that I find somewhat dis- bias. The claims court has extensive Mr. HATCH. Can we ask unanimous turbing. experience in resolving these types of consent that the 15 minutes, from 9:30 We know that Mr. Dale deposited claims. to 9:45 before the vote, be divided over 50 Travel Office checks worth ap- The Parliamentarian has already in- equally between Senator REID and my- proximately $54,000 into his personal dicated that the provision to reimburse self or Senator SHELBY? account over a 3-year period of time. Mr. Dale is a private relief provision. Mr. REID. I think they are planning He never told anyone in the Travel Of- There is a law in place that allows the to do that in wrapup. fice or in the Bush or Clinton White Senate to send requests for private re- Mr. HATCH. I will let it go then. Houses about these secret deposits. lief to the claims court so the court Mr. LEVIN. Mr. President, I ask if These deposits only came to light be- can decide whether the relief is sought Senator REID might yield 5 minutes. cause of a FBI investigation, not be- in a legal way and is legally appro- Mr. REID. I yield as much time as cause Mr. Dale disclosed this informa- priate. the Senator may consume. tion. Mr. President, this is a fair and well- The PRESIDING OFFICER. The Sen- We know that Mr. Dale offered to established method for resolving a dis- ator from Michigan is recognized. plead guilty to a felony before the pute. It has worked before. Passage of Mr. LEVIN. Mr. President, there is trial. That is fact. this amendment would allow the Sen- plenty of evidence of White House mis- We know that Mr. Dale admitted ate to make a decision based on legal takes and errors in the firing. Those that it was ‘‘a terrible decision on my rather than political considerations. If have been acknowledged now for years. part.’’ the claims court recommends reim- They have been recounted here again We know that at the end of the trial, bursement for Mr. Dale, then the pub- tonight. They have been acknowledged, the judge ruled that there was suffi- lic would know what he actually de- as they should be. People who had legal cient evidence for a reasonable jury to serves, and we will not worry that he is fees that resulted from that firing convict Dale of all charges brought the beneficiary of some political wind- should have those legal fees reim- against him. fall. We are willing to live by the deci- bursed, those who were not indicted. In the end, the jury acquitted Mr. sion made by the claims court. They have been reimbursed except for Dale of the charges, but that does not On the other hand, if the court would $50,000. That $50,000 is part of this bill. mean the taxpayers should pay his rule that Mr. Dale does not deserve to That is not what is at issue. legal expenses. If we gave a half a mil- be reimbursed, then he will not be What is at issue is the $450,000 which lion dollars to every defendant who was given a half a million dollars of tax- would go to someone who was properly acquitted, I am sure we would have payers’ money improperly. There is indicted, properly prosecuted, and people lining up for criminal trials in one-half million dollars at stake. whether or not this Senate, for the every courthouse in America. The fact The public deserves a neutral deter- first time in our history, will be ap- is, we have never reimbursed anyone mination on this issue, and there is an proving legal fees to someone who was who was indicted, even if they were important Senate precedent at stake. legally indicted. And that is the issue. later acquitted by a jury. We owe it to this institution to act It was not the White House that car- So why do my Republican colleagues carefully and thoughtfully, even in the ried out the criminal investigation of seek special treatment for Mr. Dale? heat of a Presidential election year. Billy Dale. That was the FBI, and there Why should Mr. Dale be treated dif- Again, let me commend my col- is no evidence that has been alleged ferently than every other criminal de- leagues, and for all these reasons, I that I know of that the FBI investiga- fendant in America? urge all of our colleagues to join them tion that led to the indictment was im- It seems to me that he is being treat- in favor of the amendment. proper. There was no allegation at ed differently because my Republican I yield the floor. trial, there was no allegation in the The PRESIDING OFFICER. Who colleagues are using the Travel Office House committee report that the FBI seeks recognition? matter for purely political purposes. Of Mr. LEVIN addressed the Chair. investigation that led to the criminal course, my colleagues on the other side The PRESIDING OFFICER. The Sen- proceeding, that led to the attorney’s of the aisle say that Mr. Dale deserves ator from Michigan is recognized. fees which are at issue here, was an im- to be reimbursed and that Democrats Mr. LEVIN. Mr. President, how much proper investigation. are blocking reimbursement for politi- time is left to Senator REID? It was not the White House which de- cal reasons. The PRESIDING OFFICER. Twenty- cided to prosecute. It was a very pro- To put an end to partisan bickering two and a half minutes. fessional Department of Justice which over the issues, we Democrats have of- Mr. REID. Mr. President, I am won- made a decision to prosecute based not fered a very reasonable amendment. dering if the 81⁄2 minutes the leader on anything that the White House had And let me just commend the distin- used can be charged to leader time, and done, but on what Billy Dale had done, guished Senators from Michigan and we can have the full half hour? relative to the deposit of checks that Nevada for their tenacity and for their Mr. DASCHLE. Mr. President, I ask belonged to the Travel Office, in his willingness to bring this issue to the unanimous consent that the time that own personal account, and relative to September 11, 1996 CONGRESSIONAL RECORD — SENATE S10315 cashing checks that were intended for ess to give us an objective evaluation dicted, and he was properly indicted. petty cash that didn’t end up going of a private claim of this kind. Take it There was never a question of whether through the petty cash ledger. out of politics. It does not belong or not he was properly indicted. Had it It was his actions which the FBI in- there. When you set a precedent of this been on the basis of the legislation vestigation determined were indict- kind, be sure you are acting on firm talked about by my friend from Michi- able. ground, free it from any political taint, gan, these facts would have never been It was his actions, not the White any political coloration, refer it to the given to the American public, they House action, it was his deposit of body that we have set up in law to de- would have never been given to the checks in his personal account, min- termine whether or not a claim of this American public that he wrote a letter gling money that did not belong to him kind is based on an equitable claim. through his attorney saying he would in his private bank account. It was Mr. President, I made an inquiry of plead guilty, that the prosecution those actions that led to the indict- the Chair back on May 14 relative to memo, line after line, indicates that ment, led to the prosecution, not the the Senate bill that Senator HATCH in- this man did a lot of things that were White House action. troduced, which would provide relief criminal in nature. The fact, Mr. Presi- It was his own actions which led to for the Travel Office employees. That dent, that he was acquitted by a jury is an indictment which resulted in legal inquiry which I made to the Chair on really too bad. But it happens, it hap- fees which are the subject of this issue. May 14 was whether or not the bill be- pens in our system of justice. Should we, for the first time without fore us, which was that freestanding It is simply wrong to accuse this ad- a Senate hearing, without a House re- bill of Senator HATCH, is a private bill. ministration of leaking the memo. I do port which makes even a reference to The Presiding Officer ruled, after, if not think it is my obligation to indi- any impropriety in the indictment and my recollection is clear, he consulted cate where the prosecution memo was prosecution, should this Senate decide with the Parliamentarian, that it is a obtained, but I do know that I obtained that this defendant, unlike any other private bill. it, and I do know it did not come from defendant, should have his legal fees My parliamentary inquiry at this anybody in the Justice Department, paid, although he was indicted? time is, is the Senator correct that did not come from anybody in the Our good friend from Utah said, that was the ruling of the Chair on White House, directly or indirectly. It ‘‘What about Ham Jordan?’’ Ham Jor- May 14 relative to that parliamentary is a reckless charge, lacking in merit. dan was not indicted. That is the divid- inquiry? We are entitled, in this Senate Cham- ing line which we are asked to cross, The PRESIDING OFFICER. That was ber, to talk about letters written ad- the dividing line between people who the response of the Chair to that in- mitting guilt. We are entitled, in this were indicted and people who were not. quiry. Senate Chamber, to talk about facts as The White House Travel Office peo- Mr. LEVIN. Mr. President, I thank determined in a prosecution memo. ple, except for Billy Dale, were not in- the Chair for that, and I yield the floor. Mr. HATCH. Would the Senator yield dicted. Ham Jordan was not indicted. Mr. REID addressed the Chair. on that for just a question? People who were investigated by the The PRESIDING OFFICER. The Sen- Mr. REID. I will be happy to yield for independent counsel who were not in- ator from Nevada is recognized. a question. dicted are entitled to legal fees if legal Mr. REID. There has been some talk Mr. HATCH. I appreciate my col- fees result because of the existence of about there should not be talk on this league yielding. an independent counsel. We have pro- floor about the prosecution memo, My question is this. I know the Sen- vided for legal fee reimbursement for about a plea of guilty. Mr. President, ator did not get it from the White people not indicted. We have awarded we are not in court. We are in the Sen- House directly or from the Justice De- legal fees for people not indicted. The ate of the United States, some say the partment directly, because the Senator independent counsel statute provides greatest debating society in the his- told me where he got it. The Senator for legal fees for people not indicted. tory of the world. I think it is appro- got it from the House of Representa- Should we cross that line? I think we priate, in a great debating arena, to tives, which I presume whomever they ought to be very careful of setting a talk about the facts. This is not a got it from got it from the White House precedent, so careful that we ought to court of law where there are objections or the Justice Department. Those are simply say, OK, these fees will be paid as to hearsay, objections as to ques- the only two places it could have been subject to one thing, and that is, that tions having already been asked, or it obtained. I am not accusing the Sen- we got a law which says that we can is repetitive, or you do not understand ator from Nevada, although I ques- refer a private claim, a private bill, to it. We are here to bring out the facts, tion—I question—whether a document the Court of Claims, and the Court of the facts from wherever we might find that so one sided should be used espe- Claims can determine if there is a legal them. We have found facts relating to cially a document that is confidential. or equitable basis for the claim. this case that for a long time have been I question whether that sort of docu- Is there an equitable basis for this covered up. They have been hidden in ment should be used on the floor of the claim? The Senator from Utah feels the bowels of wherever they are hidden Senate. that there is. He feels that with great in this big city. Mr. REID. I say to my friend from intensity, as does the Senator from The fact is that in this instance we Utah, and he is my friend from the Alabama. I would propose to both of have learned that there was an in- neighboring State of Utah, that the them that we test their hypothesis. stance in a document called the pros- prosecution memo sets forth facts in There is a test. There is a test in law. ecution memo, where among other the case. We are entitled in this body We wrote the law. It is a reference to things they found: ‘‘We propose to to have facts in the case. We have the Court of Claims. I propose to them charge Billy Ray Dale . . . with con- heard a lot of facts over these many that they test their hypothesis that verting to his own use approximately months from the other side about this there was anything wrong, that there $54,000 in checks and $14,000 in cash’’— poor Billy Dale, how he has just been was something wrong with the prosecu- and I put here recognizing that they put upon by everybody. The fact of the tion, investigation and indictment could only get 1 year of the money that matter is, he has not been. The fact of here. Because unless there was, there is he stole; there was a lot more money the matter is, he was indicted, properly no basis for the payment of legal fees. he stole, but the records, as indicated, indicted. After having been indicted, he Test that hypothesis. have been destroyed—‘‘received by him had a letter written saying, ‘‘I want to I call upon them to support an in connection with his official duties. plead guilty.’’ And I think we are enti- amendment which simply says, yes, we The FBI has investigated this matter tled to hear that. The American tax- will pay those fees if the Court of and strongly supports these charges.’’ payers are entitled to hear it. I think it Claims finds that there was an inequity Justice Department, Public Integrity is important to acknowledge, not only here. That is the way to test their hy- Section. that, but his admissions during the pothesis. We can argue these facts back We are here in the Senate of the trial phase. and forth all night. But one thing is in- United States to talk about the facts. Mr. LEVIN. Will the Senator yield disputable, we have put in law a proc- And the facts are, this man was in- for an additional question? S10316 CONGRESSIONAL RECORD — SENATE September 11, 1996 Mr. REID. I will be happy to yield for in weighing the fact that he was not Claims. It would take politics out of an additional question. guilty as charged. this. It would send it to a body that is Mr. LEVIN. It is in line with the I disagree with them. I think any designated under our laws and the Con- question of the Senator from Utah. Is reasonable person would. But the pros- stitution to deal with cases like this. it not true that when the Justice De- ecution did a lousy job of presenting Hundreds and hundreds of cases have partment was asked for that prosecu- the case to the jury. It happens. been forwarded to them—private tion memo by the House, it did every- He admitted being dishonest, and I claims cases. thing in its power not to give that think it is important we recognize that Now, if this amendment offered by prosecution memo to the House, and, there are many disputed facts. My good the Senators from Nevada, Michigan, as a matter of fact, it was only after friend, the distinguished senior Sen- and Delaware, if it does not pass, if this the House subpoenaed that prosecution ator from Utah, says there are no dis- amendment does not pass, the next memo that it was then delivered to the puted facts. There are lots of disputed thing that will be said is that the Sen- House? So it is not as though the De- facts. That is why, in my opinion, it is ate approved the payment of $500,000 to partment of Justice just handed it over not right to give him attorney’s fees. Billy Ray Dale. The fact of the matter to the House. They told the House, this This is raw politics. This money is not is that the right way to handle this is is a sensitive document. They did not for trial. Some of the money in the not in the political arena, where people want to turn that over to the House. time sheets that have been presented are crowing over what was done or not The House, Representative Clinger in- deal with even press events. He had to done. The fact is, it should be referred sisted on it, issued a subpoena, and appear at press events. to the Court of Claims, and let this that is when this document was deliv- Mr. President, the prosecution body decide this disputed factual case ered to the House of Representatives. memo, we should not leave that memo on the facts and on the money. Is that correct? so soon. We will go to a few pages on We are given $500,000, or $499,999 to Mr. REID. Absolutely, that is cor- the prosecution memo in summation. approve this. This is the dispute, the rect. It is not just that the Justice De- Shortly after the Travel Office em- amount of money. And there is a dis- partment was hoping who would read ployees were fired, the FBI began its pute whether he is entitled to it and it. They did not want to give it up. investigation under our supervision. whether he is entitled to the amount of Mr. HATCH. Will the Senator yield The vast majority of the allegations we money requested. on that point? examined prove meritless as to other We have done, I think, the honorable Mr. REID. Yes. Travel Office employees. However, we thing. We have come before this body, Mr. HATCH. The Justice Department found substantial evidence that Dale, as many have suggested, in an outright was not subpoenaed for that document. in fact, stole at least $14,000 in petty denial in the amendment of giving him If anybody was, it was the White cash, and he converted approximately this money. We have done it, we think, House. Why would they have that docu- $54,000 worth of travel checks to his in a reasonable manner, and we have ment? own use. an independent third party determine Mr. REID. I do not know how they We found no evidence of illegal con- whether or not this money should be got it. But it was by virtue of the sub- duct by any other member of the Trav- paid to Billy Ray Dale and, if so, how poena. el Office. That is why we have agreed much should be paid. Mr. HATCH. But you do not know? to reimburse them. The media checks I reserve the balance of my time. Mr. REID. I say to my friend from selected by Dale for deposit in his ac- Mr. HATCH. How much time is re- Michigan and my friend from Utah, I count were not for Main Street press maining? do not know how it wound up in the organizations but English, Japanese, The PRESIDING OFFICER. The Sen- House. It got there as a result of Chair- German, and Hispanic media. ator has 20 minutes remaining, and the man CLINGER wanting it and having The selection is significant. The re- other side has 7 minutes remaining. gotten it, and it worked its way to this funds were generated by the vendors on Mr. HATCH. Mr. President, let me body, as it should. their own and arrived unexpectedly, just say a few words, and then I will Now, I repeat, if the Billy Dale con- and their absence would not be missed. again yield the floor. I would like not stituency is so confident that they Similarly, the checks from the esoteric to use all of my time, if my colleagues have merits on their side, they should news services were less likely to be are willing to yield back. allow for this to be removed from this scrutinized. The distinguished Senator from political arena during this Presidential Mr. President, I think it is also of Michigan has repeatedly stated time election time and decided by an inde- note in the prosecution memo—because and time again that Mr. Dale put pendent body. That is why we have the until I read this, this is the first I knew money into his own account. No one Court of Claims. about this—the petty cash logs cover- disputes that. That is the way it was There has been a lot of talk here to- ing the period prior to February 1992 done through the years, and there was night about other Travel Office em- are missing. Dale had no explanation nothing illegal about doing that, ei- ployees. The other Travel Office em- for the missing logs. These deal with ther. The White House Travel Office is ployees were not indicted, and they petty cash. This is where he got the run for the benefit of the White House have been or will be fully reimbursed. cash. He did not deal with checks in and the media. As part of that job, Mr. They have gotten most of their money this instance. Dale had to have access to funds on now, except for a few incidentals, and Another few lines from the prosecu- short notice. No one has complained everyone acknowledges they should be tion memo: about that fact. Most importantly, the paid. We are willing to do that. The evidence indicates that Dale stole this media did not care that Mr. Dale put The House and others at the time missing $14,000 in cash. their money, the media’s money, into they acted simply did not have the Next: his account. facts. Billy Dale is not an honest per- However, Mr. Dale does deny, and the son. The jury did not find that he was There was simply no need to cash these siz- able checks at the time they were presented. jury agreed, that he did not steal or honest. They acquitted him. The jury convert that money or those funds, and in the Menendez brothers case did not Next: was found not guilty of the charges find they were good sons. They acquit- He cannot claim credibly he used the rel- that were levied against him. In fact, ted them on the first go-round. They atively large amounts of unrecorded cash to one of the distinguished members of pay trip expenses during this period. were acquitted. It was a hung jury— the media testified for him, Sam Don- hung jury. They did not find that they Finally: aldson, one of the most well-known were nice young men who were good to Dale’s explanation is not credible. people in the press today, a person for their parents, just as this jury did not That is what this case is all about. whom I have a lot of respect. find that Billy Dale was honest. That That is why the Court of Claims should The fact of the matter is that the was not a requirement of their find- review this. Justice Department can indict anybody ings. They looked at jury instructions Mr. President, this is important that they want to. Grand juries generally do and ruled upon those jury instructions we go forward on this to the Court of what the prosecutors tell them to do. September 11, 1996 CONGRESSIONAL RECORD — SENATE S10317 That is no big deal. I find it uncon- second document, the prosecution tion. Frankly, this should not involve scionable that after having been tried, memorandum, was produced after the the election. This is doing what is having incurred legal expenses of half a trial to the House of Representatives. right. If I were the President, I would million dollars, and then having a jury Once again, someone on the Democrat say, if you could get rid of this, do of his peers acquit him that my col- side of the House of Representatives what’s right, pass the bill, and let it be leagues here on the Senate floor are leaked this very confidential memo. forgotten. suggesting that they think Mr. Dale is Once again, it is my contention that But I will tell you some people who still guilty. this Administration and their friends are never going to forget this, even if I do not find that in good form. in Congress would do anything to har- this bill passes and the President signs Frankly, it really is a sin, especially ass Mr. Dale. it into law, and that is Billy Dale and when you go to the real facts of how It is hypocritical. It is hypocritical the people with him. No amount of re- this man and his partners, his col- for the White House to take care of imbursement of attorney fees, no leagues in the Travel Office, were their own people and not be willing to amount of compensation, no amount of screwed by the White House, for greedy right this wrong. I can’t imagine any- money, compensatory, punitive, or oth- purposes, by people who just got the body who looks at the facts, clearly, erwise, will make up for what they White House, thought they had total coming to any other conclusion other have been through. I can tell you right power, and wanted to move their than that this is an injustice to these now that Billy Dale undoubtedly has friends into the lucrative Travel Office people, a terrible ordeal to Mr. Dale lost 8 or 10 years of his life because of business. I am specifically speaking of and his family, and it ought to be rec- this ordeal, and so would anybody in Mr. and Mrs. Thomasson and a per- tified. That is what the Congress is try- this body. sonal relative of the President. Not ing to do at this point. That is cer- I want you to know that if we have only did they do that, but they even tainly what I am trying to do. I think any self-respect at all, this body will do used White House counsel to intimi- that is what any fair-minded person what is right here. I am asking my col- date the FBI in this matter. They did would try to do. leagues to do what’s right here. I hope an inadequate accounting in this mat- To come in here and make a case there are some on the other side that ter. It was anything to get rid of these that they don’t believe that Mr. Dale will see their way clear to do what’s people so they could put their cronies was innocent, after he was proven inno- right in this matter. That is what I into this lucrative position. cent, after a jury of his peers found ask. These people had served the White him to be innocent, after members of If my colleagues are prepared to House for years, various Presidents, the media, whose money was involved, yield back their time, I will yield back and had done so with the respect of all testified he was innocent, is pretty as- mine. prior White Houses. The White House tounding to me. Once again, I oppose Mr. LEVIN. I ask for 2 additional itself, in the memo I read earlier, found the motion of the Senator from Nevada minutes. in the material sent by the White to strike the language to reimburse the Mr. HATCH. I will reserve the bal- House, said they had messed this up, legal expenses of the seven White ance of my time then. and they had acted improperly. House Travel Office employees who Mr. LEVIN. Will the Senator from This is from the White House: were victimized by the Clinton admin- Nevada yield 2 minutes? You all may dimly remember the Travel istration for nothing more than politi- Mr. REID. Yes. Office affair, in which a number of the White cal favoritism. Mr. LEVIN. Mr. President, I have a House staff—many immature and self-pro- The only crime that Mr. Dale and his couple of quick comments. First of all, moting—took impulsive and foolhardy ac- colleagues committed was having the I believe I heard the Senator from tions to root out problems at the beginning bad fortune of holding a job which po- Utah, some minutes back, say that the of the Clinton administration and to then litical cronies of the White House Justice Department leaked the pros- gallantly recommend that they take over its wanted. The politicization of the De- ecution memo. I now ask unanimous operation. partment of Justice and the FBI in consent to have printed in the RECORD That was straight out of a document bringing numerous investigations, and a letter from the Justice Department provided by the White House. finally a bogus prosecution against Mr. to Representative WILLIAM CLINGER, The fact is that I don’t think any- Dale, is unconscionable and it should saying that the only reason they are body who looks at this fairly could not be tolerated. My colleagues on the presenting this prosecution memo, as deny that these people deserve to be other side of the aisle claim that such Representative CLINGER was insisting treated fairly. This is a question of a payment is unprecedented, in re- upon, is because they were threatening fairness. It is a question of justice. It is sponse to which, I say, the cir- the Attorney General with contempt, a question of making amends for a cumstances by which Billy Dale was unless that prosecution memo was pro- White House that acted improperly, persecuted and smeared, and the others vided to the House committee. and did so, for the most part based on fired, is unprecedented. It deserves un- So this was not a memo that was pro- personal greed. precedented treatment and resolution. vided to anybody willingly, as far as I To clarify the record, I have done And it should be treated as such. This know, by the Justice Department. This some investigation in the interim pe- is a meritorious case. If I have ever was a memo that was subpoenaed and riod here. I want to discuss, for a seen one, this is one. What was done to obtained upon threat of contempt of minute, the exposure of the plea agree- these people should never have oc- the Attorney General herself. ment and the prosecution memo. I be- curred in this manner. House Repub- I ask unanimous consent that the lieve these are the accurate facts. We licans and House Democrats recognize letter from the Department of Justice, have checked with the parties con- this fact. Why can’t Senate Repub- not from the White House, to Rep- cerned. The White House called us and licans and Senate Democrats recognize resentative CLINGER, dated May 8, say- said they were not responsible. I don’t this fact? I think everybody in this ing that they were now enclosing this, want to accuse the White House. I just body really knows this to be the fact. If despite their very strong reluctance to said it has to be the Justice Depart- we in Congress are to reimburse legal do so, and it was all set forth in this ment or the White House, one or the fees on a case-by-case basis when the letter, be printed in the RECORD. other. That is all it could be. In fact, case merits it, then that is a good The PRESIDING OFFICER. Is there the plea agreement was leaked from thing. I have never seen a case more objection? the Department of Justice or the White worthy than this particular case. Mr. HATCH. What I said was that House to U.S. News and World Report. Now, there is no reason to go to the somebody from either the Justice De- In addition, the Department of Justice, court of claims in this matter. Let’s partment or White House leaked it to when they did produce that document just do what is right. There is no doubt the U.S. News & World Report before to Chairman CLINGER’s committee, in my mind that part of the reason why Chairman CLINGER asked for this mate- failed, in violation of their own regula- our colleagues on the other side want rial. tions, to treat that document in a sen- the court of claims to decide this mat- Mr. LEVIN. I don’t know what the sitive and confidential manner. The ter is so they get it beyond the elec- basis of the Senator’s statement is— S10318 CONGRESSIONAL RECORD — SENATE September 11, 1996 Mr. HATCH. The U.S. News & World about our concerns regarding such disclo- said that he cannot imagine anyone Report. sure. We reiterate that request as to these coming to any other conclusion than Mr. LEVIN. The basis of the Sen- documents and, further, urge the Committee the one that he has come to, that there ator’s statement 10 minutes ago that to limit access to Committee staff only and was an injustice for these people. the Justice Department leaked this, it make no copies. Sincerely, Again, I urge him to test that hypoth- seems to me, is not established by any ANDREW FOIS, esis by doing what we do regularly factual evidence that he has provided. Assistant Attorney General. with private bills, which is to refer Mr. HATCH. If the Senator will yield, Mr. LEVIN. The document in ques- them to the Court of Claims. This will the point I was making is this. Al- tion had been brought to the commit- be the only defendant in history legally though Representative CLINGER had a tees, and I am now here quoting the indicted whose legal fees will be paid. right to ask for it, I am not sure they letter, prior to its being delivered pur- It will be the only defendant whose should have given it to him. But they suant to the threat of contempt of the legal fees will have been paid who was did. But at least before they gave it to Attorney General, that these docu- properly indicted. The Senator from Utah feels, with him, somebody leaked it to U.S. News ments, according to the letter, were great certainty under his hypothesis, & World Report. That somebody had to made ‘‘available for committee review that no one else can come to any other be somebody in the Justice Depart- only as a result of the committee’s sub- conclusion that an injustice was done ment or the White House, which were poena; we brought them to the com- the only two bodies who could possibly here should be tested by doing what we mittee’s offices for review three times have done with private bills over and have had it. The White House called and advised the staff that we would re- me, and, in all fairness to them, they over and over again. This would be the turn with them as often as necessary to exception to a rule that we do not pay said it wasn’t them. accommodate the committee’s over- So it had to be. If it was not them, legal fees to people properly indicted. sight needs. We would prefer to con- the Justice Department, or somebody Test the hypothesis, Senator. Send tinue to provide these core deliberative who got into the Justice Department, this claim to the Court of Appeals. documents to the committee on that stole it. I do not think that is possible. And, if you are right, that they find, The PRESIDING OFFICER. Is there basis.’’ and that any reasonable person would But then they go on to say, ‘‘In light objection to the request? find, that there was an inequity here, There being no objection, the mate- of the committee’s announced inten- in fact, not only will the fees be paid, rial was ordered to be printed in the tion to hold the Attorney General of but they should be paid. But that the United States in contempt of Con- RECORD, as follows: should be done by an objective person, gress, we are forwarding these docu- U.S. DEPARTMENT OF JUSTICE, an objective party, an objective insti- ments to you.’’ OFFICE OF LEGISLATIVE AFFAIRS, tution, the Court of Claims, and not by Washington, DC, May 8, 1996. They have previously shared the doc- this body 2 months before an election Hon. WILLIAM F. CLINGER, Jr., ument with Members three times. So in the heat of a political campaign. Chairman, Committee on Government Reform to attribute leaks to any particular Mr. REID addressed the Chair. and Oversight, House of Representatives, source without evidence under these The PRESIDING OFFICER. The Sen- Washington, DC. circumstances, it seems to me, is with- ator from Nevada. DEAR MR. CHAIRMAN: Based upon my con- out foundation. Mr. REID. Mr. President, because the versation with Barbara Olson this morning, No. 2, I may have misheard the Sen- question has been raised from the trial we understand that the Attorney General ator from Utah on this. I may have will be removed from the Committee’s con- transcript at pages 129 and 130, Dale ad- tempt proceedings agenda as a result of our misheard the Senator from Utah on an- mitted that he didn’t tell anyone else providing the enclosed documents. other point. If I did, then I would stand at the Travel Office that he was put- The enclosed documents are the prosecu- corrected. I believe, however, that the ting these checks into his own account tion memorandum for Billy Ray Dale and a Senator from Utah said that he had de- and not the Travel Office account. He related prosecutorial decisionmaking docu- posited checks that belonged to the admitted that he didn’t even tell the ment plus two declination memoranda con- Travel Office for 30 years in his own ac- individual he worked with in the Trav- cerning decisions not to bring criminal count. el Office for 30 years, his chief assist- charges against other individuals. As our Mr. HATCH. No, I didn’t say that. I February 26th letter explained other individ- ant, Gary Wright, of this practice. uals. As our February 26th letter explained, said he had been depositing some of the The PRESIDING OFFICER. Who extremely sensitive criminal justice docu- checks of the media. yields time? ments of this kind are made available out- Mr. LEVIN. That this was done regu- Mr. HATCH. I will take a couple of side the Department only under the most ex- larly. minutes, Mr. President. traordinary circumstances. We made these Mr. HATCH. It was done regularly for For the record, in the House inter- particular documents available for commit- years. view with the Peat Marwick represent- tee review only as a result of the Commit- Mr. LEVIN. No one knew it. ative that was so mightily represented tee’s subpoena; we brought them to the Com- Mr. HATCH. The people there knew here, the Peat Marwick representative mittee’s offices for review three times and it. said that this case, meaning the White advised the staff that we would return with Mr. LEVIN. Oh, no. May I make this them as often as necessary to accommodate House Travel Office audit, was the only the Committee’s oversight needs. very clear? No one knew that he was one he has been involved in where he We would prefer to continue to provide depositing checks in his own personal was told the outcome before the inves- these core deliberative documents to the checking account. tigation was completed. Committee on that basis. In light of the Mr. HATCH. The media has never ob- This was a trumped-up case against Committee’s announced intention to hold jected. The point I was making is the decent people, and even though every- the Attorney General of the United States in media, when they knew about it, never body admits that it would have been contempt of Congress, we are forwarding objected—never objected at any time. better for Mr. Dale to not have put the these documents to you. In doing so, we do And, in fact, one major representative money in his account, that it was a not intend to prejudice in any way the De- partment’s response to any future requests of the media testified— mistake to do that, nevertheless, no- from the Committee or any other congres- Mr. LEVIN. His colleagues did not body that I know of accuses him of sional committee. know. The FBI was not informed when having taken that money for his own We are very concerned that the public dis- they were investigating the practices use. In fact, to the contrary, the testi- closure of this deliberative process and at- in the office. Peat Marwick, when they mony in the trial, and that which re- torney work product material might inhibit looked at this, were not informed by sulted in his acquittal, was that he the candor of our internal deliberations. We him that he had done this. used the money properly, that he had have requested and Committee staff have So the point that that practice being to have access to it to be able to solve agreed that access to these types of docu- ments will be limited to Members and Com- somehow or other appropriate because the problems with the media. mittee staff and that the Committee will not it had been going on for a long time, it So I think it is really overreaching to disclose the documents outside the Commit- seems to me, begs the question. try to say because a person is indicted, tee without first affording the Department Finally, I would urge my friend from that an injustice could not have oc- an opportunity to confer with staff further Utah to test this course of action. He curred. I can give a lot of cases where September 11, 1996 CONGRESSIONAL RECORD — SENATE S10319 people have been unjustly indicted. managers and policymakers, and edu- of Federal rules on the private sector, This is one of them. This is an excep- cation and information transfer. It State and local government, and the tional case. It ought to be treated ex- would directly serve the Raptor Re- Federal Government. Beyond compli- ceptionally. search Center at Boise State Univer- ance costs, regulation also creates a The fact of the matter is that the sity. drag on real wages, economic growth, White House was trying to please four A first meeting has been held be- and productivity. OMB should use people, Harry Thomasson and his wife, tween GSA representatives and some of available information, where relevant, Linda, Catherine, Cornelius, and the agencies that will use the proposed to assess the direct and indirect im- Clerissa Cerda. The David Watkins facility, including the U.S. Fish and pacts of Federal rules. OMB also should memo makes that clear. I do not think Wildlife Service, the Idaho Department discuss the serious problem of un- anybody could read that memo and of Fish and Game, the Peregrine Fund, funded Federal mandates and inform then fail to get outraged by the way and Boise State University, which Congress what it is doing about the these people were treated. would be the site of the facility. GSA problem. Finally, just to make the Record believes this is the kind of project that In the end, I expect OMB to produce clear, the plea agreement was leaked falls within its purview and is some- a credible and reliable picture of the by someone in the Justice Department, thing that may be beneficial to under- regulatory process—a picture that or the White House, to U.S. News & take. highlights the costs and benefits of reg- World Report. The prosecution memo Mr. SHELBY. I thank the Senator ulatory programs and that allows Con- was provided to Chairman CLINGER, from Idaho for providing this informa- gress to determine which programs and who shared it with his minority coun- tion and would ask what are the goals program elements are working well, terparts, and somebody on the minor- of this process at this time? and which are not. ity staff gave it to the media. The plea Mr. CRAIG. The discussions cur- ERIE FEDERAL COURTHOUSE PROJECT agreement had to be leaked by either rently underway are preliminary and Mr. SPECTER. Mr. President, I the White House or the Justice Depart- should lead to a determination of would like to address the issue of fund- ment. I am willing to take the White whether to initiate a formal feasibility ing for the Erie Federal Complex con- House word that they did not do that. study. struction project, which includes a Mr. SHELBY. Does the Senator fore- Then, it had to be somebody in the Jus- courthouse annex. The current court- see any costs associated with these pre- tice Department who did, because they house provides inadequate space and is liminary steps? are the only other people who had ac- Mr. CRAIG. No. These initial con- not consolidated at a single location. cess to it. And it was improper. It was tacts are necessary to determine if the The new facility will accommodate the wrong. It was unethical. project can and should be pursued by existing and anticipated future de- But be that as it may, that does not GSA and other agencies involved. mands of the courts and will allow for change the facts of this case that these Mr. SHELBY. I thank the Senator for the consolidation of the courts in one were decent people who had served suc- this information and assure him the convenient location. The House bill for cessive Presidencies, who had decent committee will follow the outcome of fiscal year 1997 provides the $3.3 mil- reputations, who did their job well and these meetings with interest. Such ac- lion required for site acquisition and who pleased both the White House and tivities would be under this sub- design work, as requested by the Gen- the media, who were just plain mis- committee’s jurisdiction and we will eral Services Administration. I am treated, unjustly, by a superaggressive want to continue to monitor any troubled, however, that the Senate bill White House that was acting in its own progress on this project and keep it does not include funding for the Erie greedy interests. And if there is ever a under consideration for the future. Federal Complex. case where we ought to stand up and REGULATORY ACCOUNTING I join with my constituents in Erie in say this is an exceptional situation, we Mr. STEVENS. Mr. President, I want recognizing the importance of this ought to provide this exceptional rem- to address the regulatory accounting project to the community and support edy, this is the case to do it in. provision in section 645 of the Treas- funding the Erie project in fiscal year So I am asking my colleagues to vote ury-postal appropriations bill, H.R. 1997. This project is duly authorized. for the Hatch amendment, which would 3756. I believe the public has the right Further, $3.135 million for site acquisi- grant these funds, and to vote down the to know the benefits of Federal regu- tion and design was contained in both Reid-Levin amendment, which would latory programs, as well as their costs, the House and Senate versions of the again force this man to get attorneys which have been estimated to be $600 fiscal year 1995 Treasury, postal appro- and go to the Court of Claims to get billion per year. priations bill, but was dropped in con- that which is justly his to begin with. To address concerns raised by Sen- ference that year because of an inter- That is what you call justice in Amer- ators GLENN and LEVIN, I made tech- nal House decision to defund certain ica: making wrongs right. nical changes. First, subsection projects which I am advised was not Having said all of that, I understand 645(a)(1) requires OMB to provide esti- based on the merits of the proposed I still have some time. So I yield the mates of the total annual costs and Erie project. remainder of my time, and I do not benefits of Federal regulatory pro- I would ask the distinguished Chair- want to keep my colleagues any longer grams in the upcoming fiscal year. man, my good friend from Alabama, for than I have to. This includes impacts from rules issued his views on the Erie project and The PRESIDING OFFICER. All time before fiscal year 1997, not just new whether he believes it merits favorable is yielded back. rules. But OMB need not assess costs consideration during conference. LIVE ANIMAL HOLDING FACILITY AT BOISE and benefits realized in preceding Mr. SHELBY. I thank my colleague STATE UNIVERSITY years. I deleted the word ‘‘cumulative’’ from Pennsylvania for his comments in Mr. CRAIG. Mr. President, I would to clarify that. OMB should use the support of the Federal Complex like to discuss with the Chairman a valuable information already available, project, which will benefit the adminis- process that has been initiated between and supplement it where needed. Where tration of justice in Erie, PA. I regret the General Services Administration agencies have, or can produce, detailed that the Senate funding levels are con- [GSA] and several Federal, State and information on the costs and benefits strained and that it has been difficult local agencies, of which the Appropria- of individual programs, they should use to identify funds for a number of tions Committee would want to take it. I expect a rule of reason will prevail: worthwhile courthouse projects. As we cognizance. This process concerns the Where the agencies can produce detail proceed to conference with the House, I feasibility of designing and construct- that will be informative to the Con- intend to work closely with the senior ing a live animal research and holding gress and the public, they should do so. Senator from Pennsylvania to obtain facility at Boise State University. Where it is extremely burdensome to funds for site acquisition and design, as The facility would be used for basic provide such detail, broader estimates requested by the Administration. The and applied ecological research, provid- should suffice. Erie project has been approved for ing biological information and related Subsection 645(a)(3) requires OMB to funds by the Senate in previous legisla- technical support to natural resource assess the direct and indirect impacts tion and thus deserves our best efforts. S10320 CONGRESSIONAL RECORD — SENATE September 11, 1996 Mr. KOHL. Mr. President, I would constituents in my homestate of Wis- important law enforcement efforts, ask for just a few moments to discuss consin who have the good fortune, or such as the investigation of church ar- my amendment, which the Senate should I say the good luck, to get sons—we would now be wasting court unanimously adopted during yester- through to IRS assistors, have then resources and distracting the courts day’s debate. First, let me thank Sen- been put on hold and subjected to sig- from consideration of serious criminal ators SHELBY and KERREY for their sup- nificant waits that have sometimes cases. port and hard work in crafting the ended with a random and inexplicable Fortunately, another decision by the Treasury-postal appropriations legisla- disconnection of the line. fifth circuit in U.S. versus McGill tion before us. Simply put, this level of service is found that congressional intent to pro- My amendment, which expresses the unacceptable. And in the end, it’s not hibit any Federal relief—either sense of the Congress, relates to the In- unreasonable to speculate that it through ATF or the courts—is clear. ternal Revenue Service telephone as- works against our overall efforts to The fifth circuit concluded that con- sistance program, one which the IRS streamline the government. After all, victed felons are therefore not eligible advertises as a first line of assistance if taxpayer questions are not being an- for judicial review of their relief appli- to the American taxpayer. I am pleased swered, more mistakes are being made cations. that it is now included in this bill be- and more IRS follow-up and investiga- Given this conflict in the circuit cause when it comes to telephone as- tion is required. courts, we should clarify our original sistance, the IRS customer service The IRS is aware of the problems. and sustaining intention. The goal of record is abysmal. In fact, it’s an em- The General Accounting Office has is- this provision has always been to pro- barrassment. sued reports. The Social Security Ad- hibit convicted felons from getting In fiscal year 1995, IRS assistors re- ministration and private sector inter- their guns back—whether through ATF portedly answered 38 percent of tax- ests provide numerous examples of or the courts. It was never our inten- payers’ calls. In fiscal year 1996, the ways to improve telephone assistance. tion to shift the burden to the courts. figure improved slightly, but still only And now Congress has made the first of Congressman DURBIN and his col- 46 percent of taxpayers got through to what may be many calls to the IRS, leagues succeeded in their efforts to in- IRS assistance personnel. In other urging them to establish performance clude language in the House appropria- words, currently, less than half of the goals, operating standards and manage- tions bill to make clear that convicted taxpayers in need of help even get ment practices—whatever it takes to felons may not use the courts in their through to an IRS assistor, and that get the lines answered and put the cus- efforts to get their guns back. I ap- may be after trying once or trying 10 tomer first. plaud the House committee for its wise times. In terms of pure accessibility, ATF ‘‘DISABILITY RELIEF’’ PROGRAM vote on this issue. the statistics are even more startling. Mr. SIMON. Mr. President, I say to During the same markup, Congress- During the fiscal year 1996 filing sea- Senator LAUTENBERG, I would like to man DURBIN’S efforts were undermined son, a mere 20 percent of taxpayers got raise an issue of great importance. The by a related exemption offered by Con- through to an IRS assistor on their current version of this appropriations gressman OBEY. This exemption would first try. bill would not fund the Bureau of Alco- allow those individuals convicted of As many of my colleagues know, be- hol, Tobacco and Firearms’ [ATF] dis- nonviolent felonies the ability to ap- fore coming to the United States Sen- ability relief program. Under current peal for judicial review of their relief ate, I ran a business. And if there’s one Federal law, someone who has been application. simple bit of wisdom learned from my convicted of a crime punishable by According to Congressman OBEY’s years in business, and practiced to the more than 1 year is ineligible, or dis- amendment, the opportunity to appeal best of my ability, it is that the cus- abled, from possessing a firearm—a to the courts would be closed to those tomer always comes first. In adopting sensible idea. However, Congress cre- ‘‘felons convicted of violent crimes, my amendment, I am pleased that the ated a loophole in 1965 whereby con- firearms violations, or drug-related Senate has spoken with one voice in victed felons could apply to ATF to crimes.’’ All other felons would be al- sending that same message to the have their firearm privileges restored, lowed to apply to the courts for review IRS—take whatever steps necessary to at an estimated taxpayer cost of $10,000 of their relief applications. put your customers, the taxpayers of per waiver granted. this country, first. We have fought to end this program Mr. OBEY’s exemption is clearly in- I would add that I know customer and have succeeded in stripping the consistent with the original intent of service is of great concern to the dis- program’s funding in annual appropria- this provision for three simple reasons: tinguished ranking member, Senator tions bills since 1992. First, one need only consider people KERREY of Nebraska, who cochairs the This year, we face an additional chal- like Al Capone and countless other vio- National Commission to Restructure lenge in our efforts to keep guns out of lent criminals who were convicted of the Internal Revenue Service. I hope the hands of convicted felons. A recent lesser, nonviolent felonies, to under- that we can continue to work together court case in Pennsylvania has mis- stand how dangerous this ‘‘Capone on this issue when the Commission re- interpreted our intentions and opened amendment’’ will be to public safety. ports to Congress next July. the door for these convicted felons to Our intent when we first passed this Mr. President, each year Americans apply for judicial review of their dis- provision—and every year thereafter— in all walks of life and from every in- ability relief applications. has been to prohibit anyone who was come bracket encounter questions In this case, Rice versus United convicted of a crime punishable by when filling out tax forms and cal- States, the Third Circuit Court of Ap- more than 1 year from restoring their culating tax obligations. And since few peals found that the current funding gun privileges via the ATF procedure people dispute the challenges of navi- prohibition does not make clear con- or a judicial review. gating the current tax code, it comes gressional intent to bar all avenues of Second, as Dewey Stokes, the former as no surprise that many Americans relief for convicted felons. By their President of the Fraternal Order of Po- seek help in order to fulfill their civic reasoning, since ATF is unable to con- lice noted, most criminals do not com- duty responsibly and accurately. The sider applications for relief, felons are mit murder as their first crime. Rath- IRS’ toll free 1–800 assistance service entitled to ask the courts to review er, most criminals start by committing would seem a logical first step. But the their applications. non-violent crimes which escalate into IRS, on the receiving end, if you will, This misguided decision could flood violent crimes. An ATF analysis shows picks up the line less than half the the courts with felons seeking the res- that between 1985 and 1992, 69 non-vio- time. Thus, the majority of callers do toration of their gun rights, effectively lent felons were granted firearms relief not even have the opportunity to pose, shifting from ATF to the courts the and subsequently re-arrested for vio- let alone work out, their questions. burden of considering these applica- lent crimes such as attempted murder, This fact is troubling, very troubling, tions. Instead of wasting taxpayer first degree sexual assault, child moles- particularly when considered in light money and the time of ATF agents— tation, kidnaping/abduction, and drug of other problems. For example, many which could be much better spent on trafficking. September 11, 1996 CONGRESSIONAL RECORD — SENATE S10321 Third, there is no reason in the world these facilities and increase the reve- crease of more than $4 trillion for the taxpayers’ money and court re- nue going to these important centers. ($4,801,483,394,956.03) during the 25 years sources to be wasted by allowing the This legislation also permits the Ad- from 1971 to 1996. review of any convicted felons’ applica- ministrator of General Services Ad- f tion to get their guns back. It made no ministration to transfer control of any ZION NO. 1, MISSIONARY BAPTIST sense for ATF to take agents away or all of the telecommuting centers to CHURCH 126TH ANNIVERSARY from their important law enforcement State, local, or nonprofit organiza- work, and it makes even less sense for tions. This step will further ensure the Mr. HEFLIN. Mr. President, on Sun- the courts, which have no experience or economic viability of these tele- day, August 11, 1996, the Zion No. 1, expertise in this area, to be burdened commuting centers. Missionary Baptist Church celebrated with this unnecessary job. Let me While maintaining the necessary its 126th anniversary. Zion No. 1 was make this point perfectly clear: It was commitments to our Federal work formed in 1870, only a few miles from never our intent, nor is it now, for the force, this language will provide the its present location in Barton, AL. It is courts to review a convicted felon’s ap- necessary flexibility to let these tele- one of the oldest in the State of Ala- plication for firearm privilege restora- commuting centers thrive and prosper bama. tion. without Federal micromanagement Arthur Barton, a white landowner, Mr. LAUTENBERG. I thank the Sen- and increased Government spending. donated the land for this church as a gift to its organizers, who had a phe- ator for clearly laying out the facts. As f the coauthor of this provision, I share nomenal zeal for worshipping God. The his interest and concern about this MORNING BUSINESS church they built stood for many issue. I agree with his analysis com- Mr. SHELBY. Mr. President, I ask years. A second building, home of the pletely and intend to closely follow unanimous consent that there now be a Pine Grove Methodist Episcopal this situation in the coming year to see period for the transaction of morning Church, located on a hill just off High- if any further legislation is necessary business with Senators permitted to way 72 in west Colbert County, was to clarify our intent. I would also like speak for up to 2 minutes each. purchased from the Methodist Con- to take this opportunity to let my col- The PRESIDING OFFICER. Without ference by the small Zion No. 1 con- league know how much I enjoyed work- objection, it is so ordered. gregation in 1891 for $300. ing on this issue with him as well as so This church building was held to- f many other matters. I want to ensure gether by wooden pegs. It is reported him that although he will not be here U.S. FOREIGN OIL CONSUMPTION: that there are no nails in the building. next year to continue his work in the HERE IS WEEKLY BOX SCORE Kerosene or coal oil lamps were used Senate on this matter, I fully intend to for light. Two enormous pillars were Mr. HELMS. Mr. President, the visible in the center of the sanctuary carry on the fight for us both. American Petroleum Institute reports FLEXIBILITY FOR TELECOMMUTING CENTERS running from the floor to the ceiling. that for the week ending September 6, These are still in place today. Mr. WARNER. Mr. President, in an the United States imported 7,400,000 effort to meet the changing needs of During the Civil War, the Pine Grove barrels of oil each day, 1,300,000 less Methodist Episcopal Church building the Federal work force, I rise in sup- than the 8,700,000 imported during the port of a provision contained in the had been used as a temporary hospital same week a year ago. for wounded soldiers. It is said that Treasury postal appropriations bill Nevertheless, Americans relied on which authorizes the General Services two cannon balls were found in the foreign oil for 53 percent of their needs walls as a result of a battle which took Administration to begin work on a se- last week, and there are no signs that ries of flexiplace work telecommuting place between the town of Barton and the upward spiral will abate. Before the the Tennessee River. There were blood centers. Persian Gulf war, the United States ob- Currently, many Federal employees stains on the floor and on portions of tained about 45 percent of its oil supply from both the legislative and executive its baseboards and gunshot holes were from foreign countries. During the branches are enjoying the convenience visible in the walls. The basic structure Arab oil embargo in the 1970’s, foreign and efficiency of six completed tele- which exists today remains largely as oil accounted for only 35 percent of commuting centers located throughout it was when it was constructed before America’s oil supply. the Metropolitan Washington, DC area. the Civil War. Subsequent renovations While Federal employees enjoy the Anybody else interested in restoring have hidden evidence that it was once advantages of working at these tele- domestic production of oil—by U.S. a hospital and church for wounded Con- commuting centers, their employer, producers using American workers? federate soldiers. the Federal Government, reaps the Politicians had better ponder the eco- In 1969, brick was added, as well as benefits of increased productivity and nomic calamity sure to occur in Amer- new fixtures, carpeting, and a public improved work quality. ica if and when foreign producers shut address system. In 1977, a new roof was As the Senate accepts the important off our supply—or double the already added, carpeting was laid in the edu- responsibility to reign in Federal enormous cost of imported oil flowing cational annex, and folding doors were spending and control our Federal debt, into the United States—now 7,400,000 added. we surely realize that these tele- barrels a day. The years between 1978 and 1986 were commuting centers must be economi- f a time of rapid growth for Zion No. 1, cally self-supporting or they will not Missionary Baptist Church. The con- THE VERY BAD DEBT BOXSCORE succeed. gregation purchased three acres of land For that reason, I, along with my Mr. HELMS. Mr. President, at the to expand the cemetery, and the friend in the House of Representatives, close of business yesterday, Tuesday, central heating system was installed. A Congressman FRANK WOLF, have asked September 10, the Federal debt stood at second educational annex, which in- our respective Appropriations Commit- $5,217,211,394,956.03. cludes a baptismal pool, was con- tees to insert language granting much Five years ago, September 10, 1991, structed. Previously, the Tennessee needed flexibility to the General Serv- the Federal debt stood at River had been used for baptizing new ices Administration in regard to tele- $3,617,377,000,000. members. commuting centers. Ten years ago, September 10, 1986, The Reverend Wayne S. Bracy be- In order to maintain these centers as the Federal debt stood at came the 16th and current pastor on self-sufficient entities, the Congress $2,103,341,000,000. February 8, 1992. He has brought a fer- must allow non-Federal employees to Fifteen years ago, September 10, 1981, vent spiritual atmosphere and a com- fill any vacant slots in the tele- the Federal debt stood at mitment to teaching and training to commuting centers. Currently, Federal $979,625,000.000. Zion No. 1. employees cannot fill all of the slots Twenty-five years ago, September 10, I am pleased to congratulate the Zion all of the time, so it only makes sense 1971, the Federal debt stood at No. 1, Missionary Baptist Church on to allow non-Federal employees utilize $415,728,000,000. This reflects an in- the occasion of its 126th anniversary. S10322 CONGRESSIONAL RECORD — SENATE September 11, 1996 Its rich heritage and dedicated leaders Under his tenure as chairman of the present, which would benefit both Taiwan and members are testaments to the Sheffield Kiwanis Club Major Emphasis and the whole of the international commu- tremendous role religion continues to Program on ‘‘Safeguard Against nity, play in America’s culture and develop- Crime,’’ the club received the Silver G. whereas neither the European Union nor any of its Member States have diplomatic re- ment. Bell Award for his work in organizing a lations with the Government of Taiwan, rec- f county-wide program aimed at reduc- ognizing only the People’s Republic of China, ing crime and spurring public interest H. whereas Taiwan is very important to TRIBUTE TO SHERIFF JOHN L. in law enforcement. the European Union and its Member States ALDRIDGE I am proud to commend and con- as a trade partner, Mr. HEFLIN. Mr. President, my long- gratulate Sheriff John Aldridge for his I. whereas it is important for the European time friend, Sheriff John L. Aldridge, many years of outstanding leadership Union and its Member States to develop their relations with the governments of both is one of the giants of law enforcement in terms of law enforcement and com- in the State of Alabama. He has spent the People’s Republic of China and Taiwan in munity service. I look forward to see- an amicable and constructive spirit, over 30 years in law enforcement and is ing more of the fruits of his labors J. urging the governments of the People’s presently serving his sixth term as first-hand when I return home to Republic of China and Taiwan to intensify sheriff of Colbert County, AL, having Colbert County next year. their cooperation, K. stressing that participation by Taiwan first been elected in 1975. He was the f commissioner of public safety for the in certain international organizations can city of Tuscumbia from 1960 through GREATER RECOGNITION FOR assist with finding common ground between 1969. He is a loyal and dedicated public TAIWAN China and Taiwan and facilitate reconcili- ation between the two sides, servant whose service and commitment Mr. HELMS. Mr. President, on July L. regretting the fact that Taiwan at to law enforcement in general and his 17, the European Parliament passed a present is prevented from making a full con- community in particular have been im- resolution urging that Taiwan be tribution to the United Nations and its agen- peccable. granted greater recognition in inter- cies, and stressing that, for the efficiency of Sheriff Aldridge received his bachelor national organizations, and calling for the UN. Taiwan’s participation would be de- of science degree in law enforcement sirable and valuable. a study of the issues surrounding Tai- 1. Urges: from the University of North Alabama. wan’s participation in the United Na- He is a past president of the Alabama (a) the Council and Member States to sup- tions. port Taiwan’s attempts to secure better rep- Sheriff’s Association and is a member I find this resolution both impressive resentation than it currently enjoys in inter- of the board of trustees of the Alabama and appropriate, Mr. President, and I national organizations in the fields of human Sheriff’s Boys-Girls Ranches. He has fully agree that Taiwan deserves a and labour rights, economic affairs, the envi- received many honors and awards, in- greater role in international organiza- ronment and development cooperation fol- cluding County Officer of the Year tions. The Republic of China is a full lowing the precedent of certain cases, known from the Sheffield Elks’ Lodge and the to international law, of countries recognized democracy, with a remarkably success- as independent and sovereign even though Colbert County American Legion. He is ful economy. Furthermore, Taiwan a past State Officer of the Year and Of- the nature of their diplomatic connections plays an important role in world af- and the person of then head of state did not ficer of the Year for Colbert, Lauder- fairs. display the full symbolic panoply of com- dale, and Franklin Counties. In 1977, he It is high time that Taiwan be ac- plete sovereignty (e.g. Her Britannic Maj- received the Liberty Bell Award from corded its well-deserved stature in esty’s Dominions, American Samoa, or, until the Colbert County Bar Association. international organizations. recently the Ukraine and Belarus); Under former Governor George Wal- Mr. President, I find it gratifying (b) the Council and Member States to ask lace, he served on the executive board the United Nations to investigate the possi- that Taiwan has won this recognition bility of setting up a UN working group to of the Alabama Law Enforcement aforementioned from the European Agency. study the scopes for Taiwan to participate in Parliament, and I ask unanimous con- the activities of bodies answerable to the UN He is also a past president of the sent that the resolution be printed in General Assembly; Lions Club and past commander of the RECORD at the conclusion of my re- (c) the Council and Member States to en- American Legion Post 31. He is a marks. courage the governments of the People’s Re- Mason and first vice president of the There being no objection, the resolu- public of China and Taiwan to intensify their cooperation in a constructive and peaceful Sheffield, Alabama Kiwanis Club, as tion was ordered to be printed in the well as a former member of the spirit; RECORD, as follows: Tuscumbia Utility Board and of the (d) the Council to Urge the Commission to Colbert County Hospital Board. He f adopt measures with a view to opening a Eu- ropean Union information office in Taipei; EUROPEAN PARLIAMENT served for a time as a board member of 2. Instructs its President to forward this the Colbert-Lauderdale Attention Having regard to Article J.7 of the Treaty resolution to the Council and to the Commis- Home for Delinquent Boys and Girls. on European Union. sion. A. Satisfied with the current state of Tai- He is a loyal Democrat whose enthu- f siasm for the party has never wavered. wan’s democracy and Taiwan’s respect for the principles of justice, human rights, and CAM NEELY In 1992, he served on the Steering Com- fundamental freedom, mittee for the Clinton-Gore Campaign. B. welcoming the fact that the elections in Mr. KERRY. Mr. President, I come to He strongly endorsed the ticket that Taiwan were conducted democratically and the floor today to recognize the year and, although the Democrats did peacefully despite the overt aggression and achievements and contributions of one not carry Alabama, campaigned tire- provocation by the People’s Republic of of Massachusetts’ most beloved sports lessly for his party’s candidates. China, personalities, Mr. Cam Neely of the Sheriff Aldridge’s leadership and C. having regard to Taiwan’s wish to par- Boston Bruins. service have gone far beyond what we ticipate in international aid to developing Last week, Cam announced his re- traditionally think of as law enforce- countries, tirement from the Boston Bruins after D. having regard to the significance of de- ment duties. He initiated a rape coun- velopments in the political situation in Tai- 5 years of struggle and pain caused by seling program for the Muscle Shoals wan for the whole of East Asia at the geo- nagging injuries. He had played 13 Mental Health Center to assure victims political and economic level and in terms of years in the National Hockey League, 3 of rape were interviewed by a female a policy of stability, security and peace in with the Vancouver Canucks and the professional counselor rather than a the Western Pacific region, last 10 seasons with the Bruins. male. When the program was begun, E. welcoming the attitude of reconciliation Through his decade with the Bruins, there were no female officers in law en- displayed by President Lee Teng-hui towards Cam has become the prototype NHL forcement in Colbert County. Sheriff the People’s Republic of China and looking power forward by combining bone- forward to a dialogue spanning both sides of Aldridge made a firm commitment to the Taiwan Straits, crushing power with overwhelming tal- change this. He received an award from F. convinced that the people of Taiwan ent and grace. the Muscle Shoals Mental Health Cen- ought to be better represented in inter- In addition to his presence on the ice, ter for initiating this program. national organizations than they are at he has made a continuing contribution September 11, 1996 CONGRESSIONAL RECORD — SENATE S10323 to the community off the ice by estab- puck and splitting the defense to score brightly during his chairmanship of the lishing the Cam Neely Foundation and against [Patrick] Roy the year we fi- Ethics Committee and during his serv- planning the Neely House, which will nally beat the Canadiens,’’ Bruins cap- ice on the Senate Judiciary Commit- provide a place to stay in Boston for tain Ray Bourque said. ‘‘And I’ll re- tee. As a champion of ethics and an families of cancer patients undergoing member seeing stars when he ran over independent thinker, it is no wonder treatment at area hospitals. me during a Canada Cup practice. It Senator HEFLIN still is referred to as Throughout his career, Cam Neely was fun to know you had Cam on your the judge by his fellow Senators. rose to the challenge of being a top tier side.’’ player in the NHL, setting records, re- ‘‘You know when I realized how great Mr. President, as a farm State Sen- defining his position, and setting the he was?’’ asked Don Sweeney, ator, I salute HOWELL HEFLIN’s com- standard by which forwards in the NHL defenseman and long time teammate of mitment to Alabama agriculture. As are measured today. He played with Neely’s. ‘‘When he was back for a game chairman of the Senate Commerce, courage and finesse. His career is a and then out for a game, then back for Science, and Transportation Commit- string of highlight films peppered with a game, then out for a game. The dif- tee, I commend him for his work on accomplishments and awards. In his ference when we had him and when we rural electrification. As a member of first season with the Bruins, he was didn’t was tremendous. There was a the Senate Agriculture Committee, Nu- awarded the coveted Seventh-Player ripple effect he had on every player in trition, and Forestry Committee, he Award which is given to the Bruin who that locker room.’’ has fought for the interests of Ala- makes the most significant sustained Adam Oates, Cam’s longtime line bama’s cotton, peanut, and soybean in- contribution to the club over the dura- mate and the man who with him com- dustries. He also has strived for Fed- tion of the season. That same season he prised one of the most feared scoring eral crop insurance and flood relief for led the team in scoring with 36 goals. combinations in the NHL, said that Alabama farmers. Alabama farmers In 1988, Cam provided the spark that lit Cam’s announcement was ‘‘something and farm families surely will miss his the fire behind the Bruins’ playoff se- that we knew was going to happen all undying dedication to their industry. ries victory over the Montreal along. And today’s the black day that Mr. President, one of the toughest Canadiens—the first such victory in 45 it’s happening.’’ jobs for members of Congress occurs years. During the 1989–90 season, Cam Former Bruin standout Derek when we have to vote on legislation became only the fifth Bruin in history Sanderson has always considered Cam to reach the 50 goals mark and in 1990– Neely one of the game’s best forwards. that has sparked strong division within 91 he became only the second Bruin ‘‘His teammates will miss him, and no our constituencies. As an infamous sto- ever to reach 50 goals in consecutive one will miss him more than Oates. ryteller, Senator HEFLIN often relays seasons, joining the great Phil Guys like him don’t come along very metaphors that shed light on the dif- Esposito. often. No one can score like Cam; no ficulty of this predicament. For exam- Cam was at the height of his talent one can hit like Cam,’’ he said. ‘‘You ple, HOWELL HEFLIN once told us a and skills in the 1991 playoff series can’t replace him, you go along with- story about a hunter who is caught in against the Pittsburgh Penguins when out him.’’ a treetop and is being chased by a bob- he suffered an injury that would Derek’s words echo the feelings of cat. The hunter yells to his friend, change his career. The hit resulted in most of the Bruins’ faithful. Cam Neely ‘‘Hurry up and shoot it!’’ Unsure of his an injury to his thigh that never fully cannot be replaced. The team will go aim, his comrade yells back, ‘‘I’m not healed. That injury led to another, and on without him. Like Bobby Orr, Gord sure I can hit him. I might hit you!’’ In then another, and the pain never Kluzak, and Normand Leveille, Cam is return, the trapped hunter yells, ceased. For 5 years, Cam Neely was the forced to leave the game he loves too ‘‘Shoot anyway. I need some relief!’’ epitome of perseverance as he worked soon, and before the fans are ready to Another account of HOWELL HEFLIN’s to keep his body in shape and prepared let him go. But for every game, every lightheartedness was a speech he deliv- to play. He never let up and he never period, and every shift, I, and every ered during a Senate floor discussion gave up. Every season marked a trium- other Bruins fan, will look to the right regarding the status of the rose as the phant return to the ice for Boston’s wing and imagine the hulking No. 8 most admired hockey player. He would streaking along the boards, taking the official national flower. As the Senate play in pain until the pain became un- puck onto his stick, and blazing it past deliberated whether or not to designate bearable. He would play whenever he the netminder into the mesh netting of the rose as America’s flower, Senator was needed and his body would allow the goal. And, quietly, we will cheer. HEFLIN took to the floor with a poem. him. He kept coming back, and the f He remarked that, ‘‘Roses are red, vio- Bruins’ fans loved him dearly for his ef- lets are blue, why must I choose be- TRIBUTE TO HOWELL HEFLIN: MY forts. tween the two?’’ Remarks such as this Cam rose above the issues of money FRIEND, THE ‘‘JUDGE’’ have provided the members of this and contracts and salary disputes and Mr. PRESSLER. Mr. President, body—and his Alabama constituents— always seemed to be smiling and today I would like to pay tribute to with many moments of fond repose happy. He played hockey because he Senator HOWELL HEFLIN, a dear friend over the past 18 years. Senator HEF- loved the game and it was part of him. and colleague who is retiring from the LIN’s sense of humor will be missed During his announcement last week he Senate this year. Senator HEFLIN and I dearly. are classmates, having been elected to said, ‘‘I’ve always wanted to stay in So soon we will bid farewell to our this game as long as I could [while] the Senate at the same time. During dear friend from Alabama—HOWELL achieving results and making positive the past 18 years, I have had the oppor- HEFLIN. My wife, Harriet and I wish contributions to my team. I never, ever tunity to watch my friend from Ala- Senator HEFLIN and his lovely wife, wanted to play the game for the money bama establish himself as a distin- Elizabeth Ann, the very best. They are or simply to go through the motions. guished leader and statesman. As a Believe me, I loved playing in the big U.S. Senator and Alabama Supreme a wonderful couple, and we will miss game. I loved the competitiveness of Court Justice, he has served his coun- them very much. As the 104th Congress the sport. Since the day I arrived in try and his State well. Alabamians draws to a close, they can look forward Boston, I gave 100 percent to our team, should be proud of their country judge. to being able to return to their home to my teammates, and our fans.’’ HOWELL HEFLIN continues a family State of Alabama and enjoy one of Nobody would argue that fact. Cam tradition of public service. As the their favorite pastimes: spending time worked hard for the Bruins. Even his nephew of U.S. Senator Thomas Heflin, with their grandchildren. Mr. Presi- teammates, opponents, and coaches Senator HEFLIN brought to the Senate dent, I again would like to wish Sen- agree. a bloodline of conviction to America’s ator HEFLIN godspeed as he leaves the ‘‘There’ll be a lot of highlight clips. foundation and potential. His character U.S. Senate. He leaves in his wake a I’ll just remember him running over and background as Chief Justice of the career, character, and reputation people, things like him grabbing the Alabama Supreme Court have shone marked by excellence. S10324 CONGRESSIONAL RECORD — SENATE September 11, 1996 MESSAGES FROM THE HOUSE to undertake activities to halt and reverse cerning a rule regarding Revenue Procedure the decline in forest health on Federal lands, 96–47, received on September 6, 1996; to the ENROLLED BILLS SIGNED and for other purposes. Committee on Finance. At 2:03 p.m., a message from the The following measure was read the EC–4011. A communication from the Chief House of Representatives, delivered by of the Regulations unit of the Internal Reve- first and second times by unanimous Ms. Goetz, one of its reading clerks, an- nue Service, Department of the Treasury, nounced that the Speaker has signed consent and placed on the calendar: transmitting, pursuant to law, a report con- the following enrolled bills: H.R. 2512. An act to provide for certain cerning a rule regarding Revenue Procedure benefits of the Pick-Sloan Missouri River 96–42, received on September 6, 1996; to the H.R. 2428. An act to encourage the dona- basin program to the Crow Creek Sioux Committee on Finance. tion of food and grocery products to non- Tribe, and for other purposes. EC–4012. A communication from the Dep- profit organizations for distribution to needy uty Excecutive Director and Chief Operating individuals by giving the Model Good Samar- f Officer of the Pension Benifit Guaranty itan Food Donation Act the full force and ef- EXECUTIVE AND OTHER Coporation, transmitting, pursuant to law, a fect of law. rule with respect to allocation of assets in H.R. 4018. An Act to make technical cor- COMMUNICATIONS single employer plans, received on Septem- rections in the Federal Oil and Gas Royalty The following communications were ber 10, 1996; to the Committee on Labor and Management Act of 1992. laid before the Senate, together with Human Resources. The message also announced that the accompanying papers, reports, and doc- EC–4013. A communication from the Acting House has passed the following bills, in uments, which were referred as indi- Director of the Office of Management and which it requests the concurrence of cated: Budget in the Executive Office of the Presi- dent, transmitting, pursuant to law, a report the Senate: EC–4004. A communication from the Acting concerning direct spending or receipts legis- H.R. 2512. An act to provide for certain Director of the Office of Management and lation within five days of enactment (P.L. benefits of the Pick-Sloan Missouri River Budget, Executive Office of the President, 104–193), received on September 10, 1996; to basin program to the Crow Creek Sioux transmitting, pursuant to law, the seques- the Committee on Budget. Tribe, and for other purposes. tration update report dated August 20, 1996; EC–4014. A communication from the Direc- H.R. 2710. An act to provide for the convey- referred jointly, pursuant to the order of tor of the Fish and Wildlife Service of the ance of certain land in the State of Califor- January 30, 1975, as modified by the order of U.S. Department of the Interior, transmit- nia to the Hoopa Valley Tribe. April 11, 1986, to the Committee on Appro- ting, pursuant to law, a rule entitled ‘‘En- H.R. 3056. An act to permit a county-oper- priations, to the Committee on the Budget, dangered and Threatened Wildlife Plants: ated health insuring organization to qualify to the Committee on Agriculture, Nutrition, Listing of the Umpqua River Cutthroat as an organization exempt from certain re- and Forestry, to the Committee on Armed Trout in Oregon’’ (RIN 1018–AD96) received quirements otherwise applicable to health Services, to the Committee on Banking, on September 10, 1996; to the Committee on insuring organizations under the Medicaid Housing, and Urban Affairs, to the Commit- program notwithstanding that the organiza- Environment and Public Works. tee on Commerce, Science, and Transpor- EC–4015. A communication from the In- tion enrolls Medicaid beneficiaries residing tation, to the Committee on Energy and Nat- in another country. spector General of the U.S. Railroad Retire- ural Resources, to the Committee on Envi- ment Board, transmitting, pursuant to law, H.R. 3640. An act to provide for the settle- ronment and Public Works, to the Commit- ment of issues and claims related to the the budget submission for fiscal year 1998; to tee on Finance, to the Committee on Foreign the Committee on Labor and Human Re- trust lands of the Torress-Martinez Dzert Relations, to the Committee on Govern- Cahuilla Indians, and for other purposes. sources. mental Affairs, to the Committee on the Ju- EC–4016. A communication from the Assist- H.R. 3642. An act to provide for the transfer diciary, to the Committee on Labor and of public lands to certain California Indian ant Secretary of Labor for Mine Safety and Human Resources, to the Committee on Health in the Department of Labor, trans- Tribes. Rules and Administration, to the Committee H.R. 3910. An act to provide emergency mitting, a report concerning an examination on Small Business, to the Committee on Vet- of working places; to the Committee on drought relief to the city of Corpus Christi, erans’ Affairs, to the Committee on Indian Texas, and the Canadian River Municipal Labor and Human Resources. Affairs, and to the Select Committee on In- EC–4017. A communication from the Sec- Water Authority, Texas, and for other pur- telligence. poses. retary of Health and Human Services, EC–4005. A communication from the Chief tranmsmitting, pursuant to law, a rule enti- f of the Regulations unit of the Internal Reve- tled ‘‘Reduction of Reporting Requirements MEASURES REFERRED nue Service, Department of the Treasury, for the State Systems Advance Planning transmitting, pursuant to law, a report con- Document (APD) Process,’’ (RIN 0970–AB46) The following bills were read the first cerning a rule regarding Revenue Procedure received on August 8, 1996; to the Committee and second times by unanimous con- (RP–242645–96), received on September 6, 1996; on Labor and Human Resources. sent and referred as indicated: to the Committee on Finance. EC–4018. A communication from the Execu- H.R. 2710. An act to provide for the convey- EC–4006. A communication from the Chief tive Director of the U.S. Architectural and ance of certain land in the State of Califor- of the Regulations unit of the Internal Reve- Transportation Barriers Compliance Board, nia to the Hoopa Valley Tribe; to the Com- nue Service, Department of the Treasury, transmitting, pursuant to law, a rule enti- mittee on Indian Affairs. transmitting, pursuant to law, a report con- tled ‘‘Americans with Disabilities Act Acces- H.R. 3056. An act to permit a county-oper- cerning a rule regarding Notice 96–43, re- sibility Guidelines; Detectable Warnings,’’ ated health insuring organization to qualify ceived on September 6, 1996; to the Commit- (RIN 3014–AA18) received on August 7, 1996; as an organization exempt from certain re- tee on Finance. to the Committee on Labor and Human Re- quirements otherwise applicable to health EC–4007. A communication from the Chief sources. insuring organizations under the Medicaid of the Regulations unit of the Internal Reve- EC–4019. A communication from the Direc- program notwithstanding that the organiza- nue Service, Department of the Treasury, tor of the Office of Regulatory Management tion enrolls Medicaid beneficiaries residing transmitting, pursuant to law, a report con- and Information, U.S. Environmental Pro- in another county; to the Committee on Fi- cerning a rule regarding Revenue Ruling 96– tection Agency, transmitting, pursuant to nance. 44, received on September 6, 1996; to the law, a rule regarding control of air pollution, H.R. 3642. An act to provide for the transfer Committee on Finance. (FRL5548–8) received on September 10, 1996; of public lands to certain California Indian EC–4008. A communication from the Chief to the Committee on Environment and Pub- Tribes; to the Committee on Indian Affairs. of the Regulations unit of the Internal Reve- lic Works. H.R. 3910. An act to provide emergency nue Service, Department of the Treasury, EC–4020. A communication from the Direc- drought relief to the city of Corpus Christi, transmitting, pursuant to law, a report con- tor of the Office of Regulatory Management Texas, and the Canadian River Municipal cerning a rule regarding Announcement 96– and Information, U.S. Environmental Pro- Water Authority, Texas, and for other pur- 92, received on September 6, 1996; to the tection Agency, transmitting, pursuant to poses; to the Committee on Energy and Nat- Committee on Finance. law, three rules including a rule entitled ural Resources. EC–4009. A communication from the Chief ‘‘Approval and Promulgation of Implementa- f of the Regulations unit of the Internal Reve- tion Plans for Louisiana: General Conform- nue Service, Department of the Treasury, ity Rules’’ (FRL5549–7, 5549–9, 5549–6) re- MEASURES PLACED ON THE transmitting, pursuant to law, a report con- ceived on September 5, 1996; to the Commit- CALENDAR cerning a rule regarding Revenue Ruling 96– tee on Environment and Public Works. 46, received on September 6, 1996; to the EC–4021. A communication from the Gen- The following measure was placed on Committee on Finance. eral Counsel of the U.S. Department of the calendar under the order of Feb- EC–4010. A communication from the Chief Transportation, transmitting, pursuant to ruary 10, 1995: of the Regulations unit of the Internal Reve- law, a report concerning a rule regarding S. 391. A bill to authorize and direct the nue Service, Department of the Treasury, procedures for abatement of highway traffic Secretaries of the Interior and Agriculture transmitting, pursuant to law, a report con- noise (RIN 2125–AD97) received on September September 11, 1996 CONGRESSIONAL RECORD — SENATE S10325 5, 1996; to the Committee on Environment transmitting, pursuant to law, a rule enti- to the conditions of subsection (b) and the and Public Works. tled ‘‘Assessment Rates for Specified Mar- declarations of subsection (e): EC–4022. A communication from the Sec- keting Orders,’’ (FV96–927–2 IFR) received on (1) The Annex on Chemicals. retary of the Air Force, transmitting, pursu- September 9, 1996; to the Committee on Agri- (2) The Annex on Implementation and Ver- ant to law, a report relative to a Program culture, Nutrition, and Forestry. ification (also known as the ‘‘Verification Acquisition Unit Cost(PAUC); to the Com- EC–4035. A communication from the Con- Annex’’). mittee on Armed Services. gressional Review Coordinator, transmit- (3) The Annex on the Protection of Con- EC–4023. A communication from the Sec- ting, pursuant to law, a rule entitled fidential Information (also known as the retary of Defense, transmitting, pursuant to ‘‘Scrapie Indemnification Program,’’ re- ‘‘Confidentiality Annex’’). law, a report regarding Cooperative Threat ceived on September 9, 1996; to the Commit- (4) The Resolution Establishing the Pre- Reduction [CTR]; to the Committee on tee on Agriculture, Nutrition, and Forestry. paratory Commission for the Organization Armed Services. EC–4036. A communication from the Under for the Prohibition of Chemical Weapons. EC–4024. A communication from the Under Secretary of Defense, transmitting, pursuant (5) The Text on the Establishment of a Pre- Secretary of Defense, transmitting, pursuant to law, the report of a violation of the paratory Commission. to law, a report regarding Department of De- Antideficiency Act, case number 95–01; to the (b) CONDITIONS.—The advice and consent of fense purchases from foreign entities for fis- Committee on Appropriations. the Senate to the ratification of the Conven- cal year 1995; to the Committee on Armed EC–4037. A communication from the Dep- tion is subject to the following conditions, Services. uty Assistant Director for Fisheries, Na- which shall be binding upon the President: EC–4025. A communication from the Office tional Marine Fisheries, National Oceanic (1) AMENDMENT CONFERENCES.—The United of the Secretary of Defense, transmitting, and Atmospheric Administration, Depart- States will be present and participate fully pursuant to law, a rule entitled ‘‘Provision ment of Commerce, transmitting, pursuant in all Amendment Conferences and will cast of Early Intervention and Special Education to law, a rule regarding fisheries of the Car- its vote, either affirmatively or negatively, to Eligible DoD Dependents in Overseas ibbean, (RIN 0648–AG26) received on Septem- on all proposed amendments made at such Areas,’’ (received on September 10, 1996); to ber 10, 1996; to the Committee on Commerce, conferences, to ensure that— the Committee on Armed Services. Science, and Transportation. (A) the United States has an opportunity EC–4026. A communication from the Sec- EC–4038. A communication from the Acting to consider any and all amendments in ac- retary of the Securities and Exchange Com- Director Office of Sustainable Fisheries, Na- cordance with its Constitutional processes; mission, transmitting, pursuant to law, a re- tional Marine Fisheries, National Oceanic and port regarding a rule entitled ‘‘Exemptions and Atmospheric Administration, Depart- (B) no amendment to the Convention en- for Certain Open-End Management Invest- ment of Commerce, transmitting, pursuant ters into force without the approval of the ment Companies to Impose Deferred Sales to law, a rule regarding trip limit reductions United States. Loads,’’ (RIN 3235–AD18) received on Septem- (received on September 10, 1996); to the Com- (2) PRESIDENTIAL CERTIFICATION ON DATA ber, 10, 1996; to the Committee on Banking, mittee on Commerce, Science, and Transpor- DECLARATIONS.—(A) Not later than 10 days Housing, and Urban Affairs. tation. after the Convention enters into force, or not EC–4027. A communication from the Attor- EC–4039. A communication from the Acting later than 10 days after the deposit of the ney-Advisor of the Federal Register Certify- Director Office of Sustainable Fisheries, Na- Russian instrument of ratification of the ing Officer, Financial Management Service tional Marine Fisheries, National Oceanic Convention, whichever is later, the President of the Department of the Treasury, trans- and Atmospheric Administration, Depart- shall either— mitting, pursuant to law, a rule entitled ment of Commerce, transmitting, pursuant (i) certify to the Senate that Russia has ‘‘Depositaries for Federal Taxes’’ (RIN 1510– to law, a rule regarding fisheries of the ex- complied satisfactorily with the data dec- AA54) received on August 21, 1996; to the clusive economic zone off Alaska (received laration requirements of the Wyoming Committee on Banking, Housing, and Urban on September 10, 1996); to the Committee on Memorandum of Understanding; or Affairs. Commerce, Science, and Transportation. EC–4028. A communication from the Vice (ii) submit to the Senate a report on appar- EC–4040. A communication from the Sec- ent discrepancies in Russia’s data under the President and Treasurer of Farm Credit Fi- retary of Transportation, transmitting, pur- nancial Partners, transmitting, a notice re- Wyoming Memorandum of Understanding suant to law, a report regarding environ- and the results of any bilateral discussions garding the Retirement Plan for Agricul- mental compliance and restoration program tural Credit Associations and Farm Credit regarding those discrepancies. for fiscal year 1995; to the Committee on (B) For purposes of this paragraph, the Banks in the First Farm Credit District; to Commerce, Science, and Transportation. the Committee on Govermental Affairs. term ‘‘Wyoming Memorandum of Under- EC–4041. A communication from the Gen- standing’’ means the Memorandum of Under- EC–4029. A communication from the Dep- eral Counsel of the Department of Transpor- uty Director of the U.S. Office of Personnel standing Between the Government of the tation, transmitting, pursuant to law, a rule United States of America and the Govern- Management, transmitting, pursuant to law, regarding revision of class E airspace (RIN a rule entitled ‘‘Prevailing Rate Systems,’’ ment of the Union of Soviet Socialist Repub- 2120–AA66 (1996–0122) received on September lics Regarding a Bilateral Verification Ex- (RIN 3206–AH–60) received on September 10, 9, 1996); to the Committee on Commerce, 1996; to the Committee on Governmental Af- periment and Data Exchange Related to Pro- Science, and Transportation. hibition on Chemical Weapons, signed at fairs. EC–4042. A communication from the Gen- EC–4030. A communication from the Sec- Jackson Hole, Wyoming, on September 23, eral Counsel of the Department of Transpor- 1989. retary of the Securities and Exchange Com- tation, transmitting, pursuant to law, a rule (3) PRESIDENTIAL CERTIFICATION ON THE BI- mission, transmitting, pursuant to law, a re- entitled ‘‘Compressed Natural Gas Fuel In- port regarding the Sunshine Act for calendar LATERAL DESTRUCTION AGREEMENT.—Before tegrity’’ (RIN AF14); to the Committee on the deposit of the United States instrument year 1994; to the Committee on Govern- Commerce, Science, and Transportation. mental Affairs. of ratification of the Convention, the Presi- EC–4031. A communication from the Acting dent shall certify in writing to the Senate that— Director of the Office of Management and EXECUTIVE REPORTS OF Budget, Executive Office of the President, (A) a United States-Russian agreement on transmitting, pursuant to law, a report enti- COMMITTEES implementation of the Bilateral Destruction tled ‘‘The Information Resources Manage- The following executive report of Agreement has been or will shortly be con- ment (IRM) Plan of the Federal Govern- committees was submitted: cluded, and that the verification procedures ment’’ for fiscal year 1995; to the Committee under that agreement will meet or exceed By Mr. Helms, from the Committee on For- those mandated by the Convention, or on Governmental Affairs. eign Relations: Treaty Doc. 103–35 The Chem- EC–4032. A communication from the Gen- (B) the Technical Secretariat of the Orga- ical Weapons Convention (Exec. Rept. 104–33) eral Counsel of the Department of Energy, nization for the Prohibition of Chemical transmitting, pursuant to law, a rule regard- TEXT OF THE COMMITTEE RECOMMENDED Weapons will be prepared, when the Conven- ing debarment and suspention in procure- RESOLUTION OF ADVICE AND CONSENT tion enters into force, to submit a plan for ment and nonprocurement activities (RIN Resolved (two-thirds of the Senators present meeting the Organization’s full monitoring 1991–AB24) received on August 27, 1996; to the concurring therein), That (a) the Senate ad- responsibilities that will include United Committee on Governmental Affairs. vise and consent to the ratification of the States and Russian facilities as well as those EC–4033. A communication from the Ad- Convention on the Prohibition of Develop- of other parties to the Convention. ministrator of the Agricultural Marketing ment, Production, Stockpiling and Use of (4) NONCOMPLIANCE.—If the President de- Service, U.S. Department of Agriculture, Chemical Weapons and on their Destruction, termines that a party to the Convention is in transmitting, pursuant to law, a rule enti- opened for signature and signed by the Unit- violation of the Convention and that the ac- tled ‘‘Termination Order-Black Hills,’’ re- ed States at Paris on January 13, 1993, in- tions of such party threaten the national se- ceived on September 9, 1996; to the Commit- cluding the following annexes and associated curity interests of the United States, the tee on Agriculture, Nutrition, and Forestry. documents, all such documents being inte- President shall— EC–4034. A communication from the Ad- gral parts of and collectively referred to in (A) consult with, and promptly submit a ministrator of the Agricultural Marketing this resolution as the ‘‘Convention’’ (con- report to, the Senate detailing the effect of Service, U.S. Department of Agriculture, tained in Treaty Document 103–21), subject such actions on the Convention; S10326 CONGRESSIONAL RECORD — SENATE September 11, 1996

(B) seek on an urgent basis a meeting at (1) TREATY INTERPRETATION.—The Senate allow inspections of former military facili- the highest diplomatic level with the Organi- affirms the applicability to all treaties of ties that have been converted to commercial zation for the Prohibition of Chemical Weap- the constitutionally based principles of trea- production, given the possibility that these ons (in this resolution referred to as the ‘‘Or- ty interpretation set forth in Condition (1) of plants could one day be reconverted to mili- ganization’’) and the noncompliant party the Resolution of Ratification with respect tary use, and that any United States assist- with the objective of bringing the non- to the INF Treaty, approved by the Senate ance for the destruction of the Russian compliant party into compliance; on May 27, 1988. For purposes of this declara- chemical stockpile be apportioned according (C) in the event that a party to the Con- tion, the term ‘‘INF Treaty’’ refers to the to Russia’s openness to these broad based in- vention is determined not to be in compli- Treaty Between the United States of Amer- spections. ance with the convention, request consulta- ica and the Union of Soviet Socialist Repub- (8) EXPANDING CHEMICAL ARSENALS IN COUN- tions with the Organization on whether to— lics on the Elimination of Their Intermedi- TRIES NOT PARTY TO THE CHEMICAL WEAPONS (i) restrict or suspend the noncompliant ate-Range and Shorter Range Missiles, to- CONVENTION.—It is the sense of the Senate party’s rights and privileges under the Con- gether with the related memorandum of un- that, if during the time the Convention re- vention until the party complies with its ob- derstanding and protocols, approved by the mains in force the President determines that ligations; Senate on May 27, 1988. there has been an expansion of the chemical (ii) recommend collective measures in con- (2) FURTHER ARMS REDUCTION OBLIGA- weapons arsenals of any country not a party formity with international law; or TIONS.—The Senate declares its intention to to the Convention so as to jeopardize the su- (iii) bring the issue to the attention of the consider for approval international agree- preme national interests of the United United Nations General Assembly and Secu- ments that would obligate the United States States, then the President should consult on rity Council; and to reduce or limit the Armed Forces or ar- an urgent basis with the Senate to determine (D) in the event that noncompliance con- maments of the United States in a militarily whether adherence to the Convention re- tinues, determine whether or not continued significant manner only pursuant to the mains in the national interest of the United adherence to the Convention is in the na- treaty power set forth in Article II, Section States. tional security interests of the United States 2, Clause 2 of the Constitution. (9) COMPLIANCE.—Concerned by the clear and so inform the Senate. (3) RETALIATORY POLICY.—The Senate de- pattern of Soviet noncompliance with arms (5) FINANCING IMPLEMENTATION.—The Unit- clares that the United States should strong- control agreements and continued cases of ed States understands that in order to ensure ly reiterate its retaliatory policy that the noncompliance by Russia, the Senate de- the commitment of Russia to destroy its use of chemical weapons against United clares the following: Chemical stockpiles, in the event that Rus- States military forces or civilians would re- (A) The Convention is in the interest of the sia ratifies the Convention, Russia must sult in an overwhelming and devastating re- United States only if both the United States maintain a substantial stake in financing sponse, which may include the whole range and Russia, among others, are in strict com- the implementation of the Convention. The of available weaponry. pliance with the terms of the Convention as costs of implementing the Convention should (4) CHEMICAL DEFENSE PROGRAM.—The Sen- submitted to the Senate for its advice and be borne by all parties to the Convention. ate declares that ratification of the Conven- consent to ratification, such compliance The deposit of the United States instrument tion will not obviate the need for a robust, being measured by performance and not be of ratification of the Convention shall not be adequately funded Chemical defense pro- efforts, intentions, or commitments to com- contingent upon the United States providing gram, together with improved national intel- ply. financial guarantees to pay for implementa- ligence capabilities in the nonproliferation (B)(i) Given its concern about compliance tion of commitments by Russia or any other area, maintenance of an effective deterrent issues, the Senate expects the President to party to the Convention. through capable conventional forces, trade- offer regular briefings, but not less than sev- eral times a year, to the Committees on For- (6) IMPLEMENTATION ARRANGEMENTS.—If the enabling export controls, and other capabili- Convention does not enter into force or if the ties. In giving its advice and consent to rati- eign Relations and Armed Services and the Convention comes into force with the United fication of the Convention, the Senate does Select Committee on Intelligence of the Sen- States having ratified the Convention but so with full appreciation that the entry into ate on compliance issues related to the Con- vention. Such briefings shall include a de- with Russia having taken no action to ratify force of the Convention enhances the respon- scription of all United States efforts in dip- or accede to the Convention, then the Presi- sibility of the Senate to ensure that the lomatic channels and bilateral as well as the dent shall, if he plans to implement reduc- United States continues an effective and ade- multilateral Organization fora to resolve the tions of United States Chemical forces as a quately funded Chemical defense program. compliance issues and shall include, but matter of national policy or in a manner The Senate further declares that the United would not necessarily be limited to a de- consistent with the Convention. States should continue to develop theater (A) consult with the Senate regarding the scription of— missile defense to intercept ballistic missiles (I) any compliance issues, other than those effect of such reductions on the national se- that might carry Chemical weapons and requiring challenge inspections, that the curity of the United States; and should enhance defenses of the United States United States plans to raise with the Organi- (B) take no action to reduce the United Armed Forces against the use of chemical zation; and States Chemical stockpile at a pace faster weapons in the field. (II) any compliance issues raised at the Or- than that currently planned and consistent (5) ENFORCEMENT POLICY.—The Senate ganization, within 30 days. with the Convention until the President sub- urges the President to pursue compliance (ii) Any Presidential determination that mits to the Senate his determination that questions under the Convention vigorously Russia is in noncompliance with the Conven- such reductions are in the national security and to seek international sanctions if a tion shall be transmitted to the committees interests of the United States. party to the Convention does not comply specified in clause (i) within 30 days of such (7) PRESIDENTIAL CERTIFICATION AND RE- with the Convention, including the ‘‘obliga- a determination, together with a written re- PORT ON NATIONAL TECHNICAL MEANS.—Not tion to make every reasonable effort to dem- port, including all unclassified summary, ex- later than 90 days after the deposit of the onstrate its compliance with this Conven- plaining why it is in the national security United States instrument of ratification of tion’’, pursuant to paragraph 11 of Article interests of the United States to continue as the Convention, the President shall certify IX. It should not be necessary to prove the a party to the Convention. that the United States National Technical noncompliance of a party to the Convention (10) SUBMISSION OF FUTURE AGREEMENTS AS Means and the provisions of the Convention before the United States raises issues bilat- TREATIES.—The Senate declares that after on verification of compliance, when viewed erally or in appropriate international fora the Senate gives its advice and consent to together, are sufficient to ensure effective and takes appropriate actions. ratification of the Convention, any agree- verification of compliance with the provi- (6) APPROVAL OF INSPECTORS.—The Senate ment or understanding which in any mate- sions of the Convention. This certification expects that the United States will exercise rial way modifies, amends, or reinterprets shall be accompanied by a report, which may its right to reject a proposed inspector or in- United States and Russian obligations, or be supplemented by a classified annex, indi- spection assistant when the facts indicate those of any other country, under the Con- cating how the United States National Tech- that this person is likely to seek information vention, including the time frame for imple- nical Means, including collection, processing to which the inspection team is not entitled mentation of the Convention, should be sub- and analytic resources, will be marshalled, or to mishandle information that the team mitted to the Senate for its advice and con- together with the Convention’s verification obtains. sent to ratification. provisions, to ensure effective verification of (7) ASSISTANCE TO RUSSIA.—The Senate de- (11) RIOT CONTROL AGENTS.—(A) The Sen- compliance. Such certification and report clares that, if the United States provides ate, recognizing that the Convention’s prohi- shall be submitted to the Committee on For- limited financial assistance for the destruc- bition on the use of riot control agents as a eign Relations, the Committee on Appropria- tion of Russian chemical weapons, the Unit- ‘‘method of warfare’’ precludes the use of tions, the Committee on Armed Services, ed States should, in exchange for such assist- such agents against combatants, including and the Select Committee on Intelligence of ance, require Russia to destroy its chemical use for humanitarian purposes where com- the Senate. weapons stocks at a proportional rate to the batants and noncombatants intermingled, (c) DECLARATIONS.—The advice and consent destruction of United States chemical weap- urges the President— of the Senate to ratification of the Conven- ons stocks, and to take the action before the (i) to give high priority to continuing ef- tion is subject to the following declarations, Convention deadline. In addition, the Senate forts to develop effective nonchemical, non- which express the intent of the Senate: urges the President to request Russia to lethal alternatives to riot control agents for September 11, 1996 CONGRESSIONAL RECORD — SENATE S10327 use in situations where combatants and non- In response to those concerns, I in- Over the past 5 years, Congress has combatants are intermingled; and troduced legislation last Congress that demonstrated an increased commit- (ii) to ensure that the United States ac- would have clarified that the acquisi- ment to the fight against breast can- tively participates with other parties to the Convention in any reassessment of the ap- tion of lands adjacent to the dam by cer. Back in 1991, less than $100 million propriateness of the prohibition as it might the corps would be from willing sellers was spent on breast cancer research. apply to such situations as the rescue of only. Since that time, the corps and Since then, Congress has steadily in- downed air crews and passengers and escap- the local Abiquiu Reservoir Advisory creased this allocation. These increases ing prisoners or in situations in which civil- Council have been meeting to address have stimulated new and exciting re- ians are being used to mask or screen at- the concerns of the local community. search that has begun to unravel the tacks. Both the local community and I are mysteries of this devastating disease (B) For purposes of this paragraph, the very appreciative of the outreach and and is moving us closer to a cure. term ‘‘riot control agents’’ is used within the involvement that the Army Corps’ Al- meaning of Article II(4) of the Convention. Today, we must send a message buquerque district engineer has shown f through our authorization level to sci- on this issue since I introduced my leg- entists and research policymakers that INTRODUCTION OF BILLS AND islation last Congress. Indeed, in July we are committed to continued funding JOINT RESOLUTIONS of 1995 the corps released its master for this important research. plan/environmental assessment for The following bills and joint resolu- This increase in funding is necessary Abiquiu Reservoir, a plan which spe- tions were introduced, read the first because breast cancer has reached cri- cifically reflected the intent of Public and second time by unanimous con- sis levels in America. This year alone, Law 100–522 by recommending that ac- sent, and referred as indicated: 184,000 new cases of breast cancer will quisition of land around the reservoir By Mr. DOMENICI (for himself and Mr. should only be from willing sellers. be diagnosed in this country, and more BINGAMAN): than 44,000 women will die from this S. 2063. A bill to limit the authority of the However, because of the inherent short-term nature of the position of Al- disease. Breast cancer is the most com- Secretary of the Army to acquire land adja- mon form of cancer and the second cent to Abiquiu Dam in New Mexico; to the buquerque district engineer, and be- Committee on Environment and Public cause of past concerns about corps pol- leading cause of cancer deaths among Works. icy toward condemnation of land at the American women. Today, over 2.6 mil- By Ms. SNOWE: reservoir, the local community still be- lion American women are living with S. 2064. A bill to amend the Public Health lieves, as do I, that there should be an this disease. In my home State of Service Act to extend the program of re- Maine, it is the most commonly diag- search on breast cancer; to the Committee express clarification of congressional intent to protect the local community nosed cancer among women, represent- on Labor and Human Resources. ing more than 30 percent of all new By Mrs. FEINSTEIN: at Abiquiu from unreasonable con- S. 2065. A bill to amend the Higher Edu- demnation proceedings. cancers in Maine women. cation Act of 1965 to require open campus se- Consequently, today I am again in- In addition to these enormous human curity crime logs at institutions of higher troducing legislation that will clarify costs, breast cancer also exacts a heavy education; to the Committee on Labor and congressional intent that land acquired financial toll—over $6 billion of our Human Resources. by the corps at Abiquiu Dam is to be health care dollars are spent on breast By Mr. DASCHLE (for himself, Mr. acquired from willing sellers only. This CONRAD, Mr. DORGAN, Mr. EXON, Mr. cancer annually. legislation will give the citizens of the KERREY, Mr. WELLSTONE, Mr. PRES- Today, however, there is cause for Abiquiu area the peace of mind that SLER, Mr. GRASSLEY, and Mr. HAR- hope. Recent scientific progress made KIN): they deserve about the integrity of in the fight to conquer breast cancer is S. 2066. A bill to amend the Northern Great their property. As one long-time encouraging. Researchers have isolated Plains Rural Development Act to the dura- Abiquiu resident told me recently, ‘‘I the genes responsible for heritable tion of the Northern Great Plains Rural De- don’t want my grandchildren to have breast cancer, and are beginning to un- velopment Commission, and for other pur- to go through this terrible threat of derstand the mechanism of the cancer poses; to the Committee on Agriculture, Nu- the Government taking away our trition, and Forestry. cell itself. It is imperative that we cap- ranch.’’ My legislation will put an end italize upon these advances by continu- f to that threat, and I urge my col- ing to support the scientists inves- STATEMENTS ON INTRODUCED leagues to support this bill. tigating this disease and their innova- BILLS AND JOINT RESOLUTIONS Mr. President, I ask unanimous con- sent that the text of the bill be printed tive research. By Mr. DOMENICI (for himself in the RECORD. For this reason, my bill increases the and Mr. BINGAMAN): There being no objection, the bill was fiscal year 1997 funding authorization S. 2063. A bill to limit the authority ordered to be printed in the RECORD, as level for breast cancer research to $575 of the Secretary of the Army to ac- follows: million. This level is just $20 million quire land adjacent to Abiquiu Dam in S. 2063 over the National Cancer Institute’s New Mexico; to the Committee on En- Be it enacted by the Senate and House of Rep- fiscal year 1997 bypass budget, rep- vironment and Public Works. resentatives of the United States of America in resenting the funding level scientists ABIQUIU DAM LEGISLATION Congress assembled, believe is necessary to make progress ∑ Mr. DOMENICI. Mr. President, today SECTION 1. LIMITATION ON LAND ACQUISITION. against this disease. This increased I introduce a bill that clarifies the in- Section 1 of the Act entitled ‘‘An Act to funding will contribute substantially tent of Congress regarding Public Law authorize continued storage of water at toward solving the mysteries surround- 100–522. That law authorized the Army Abiquiu Dam in New Mexico’’, approved Oc- tober 24, 1988 (43 U.S.C. 620a note), is amend- ing breast cancer. Our continued in- Corps of Engineers to store water at vestment will save countless lives and Abiquiu Dam in northern New Mexico. ed by inserting immediately following ‘‘ac- quire lands’’ the following: ‘‘only from will- health care dollars, and prevent undue The law also authorized the corps to ing sellers’’.∑ suffering in millions of American acquire lands adjacent to Abiquiu Dam women and families. for recreational access purposes. By Ms. SNOWE: For the past several years, the corps’ S. 2064. A bill to amend the Public On behalf of the 2.6 million women Albuquerque office has been working to Health Service Act to extend the pro- living with breast cancer, I urge my determine how the area around the gram of research on breast cancer; to colleagues to support this important dam should be developed. During that the Committee on Labor and Human bill.∑ time, it became clear that the local Resources. community was extremely concerned THE BREAST CANCER RESEARCH EXTENSION ACT By Mrs. FEINSTEIN: that the corps might proceed with con- OF 1996 S. 2065. A bill to amend the Higher demnation of all 6,000 acres of flood ∑ Ms. SNOWE. Mr. President, I intro- Education Act of 1965 to require open easement lands around the lake. Such duce legislation which authorizes in- campus security crime logs at institu- an action would be extremely disrup- creased funding for breast cancer re- tions of higher education; to the Com- tive to the Abiquiu community. search. mittee on Labor and Human Resources. S10328 CONGRESSIONAL RECORD — SENATE September 11, 1996 THE OPEN CAMPUS POLICE LOGS ACT OF 1996 nity. Students and employees have a kind shall make, keep, and maintain a daily ∑ Mrs. FEINSTEIN. Mr. President, right to know what dangers they face log, written in a form that can be easily un- today I introduce the Open Campus Po- on campus. It is through this improved derstood, recording in chronological order lice Logs Act of 1996. awareness that students and faculty all crimes against persons or property re- Mr. President, every year around this ported to its police or security department, will be able to better protect them- the date, time, and location of such crimes, time thousands of students leave home selves. After all, one of the best weap- and, if an arrest has been made, the names to begin their pursuit of a college de- ons we have for deterring crime is ac- and addresses of all persons arrested and gree. These students—and their par- curate and timely information. charges against such persons arrested. The ents—expect not only a quality edu- A New York Times reporter recently provision of this paragraph shall not be con- cation, but also a campus on which wrote about a woman who had been strued to require an institution to identify they can study and live in safety. Yet, raped in February of last year—by a in its log, unless otherwise provided by law, statistics show that during a 4-year-pe- fellow student at her university in the names of the persons reporting the riod, one in four college students will crime, the victim or victims, any witnesses Ohio. Although the university’s dis- or suspects who have not been arrested, or become a victim of violent crime. And ciplinary board found the accused other information relating to any investiga- according to the Chronicle of Higher guilty of violating the student code re- tion of the crime. All entries in such daily Education, the number of crimes on garding sexual assault, he was merely logs shall, unless otherwise provided by college campuses are on the rise. placed on student probation. He never State or Federal law, be open to public in- Under the Campus Security Act of went through a criminal trial. spection.’’. 1990, colleges and universities are re- As a result, the offending student (b) EFFECTIVE DATE.—The amendment quired to make crime statistics avail- was free to come and go on a campus made by this section shall take effect on the date of enactment of this Act. able to students, applicants and school where most women did not—and indeed ∑ employees. However, under-reporting could not—realize that he had commit- By Mr. DASCHLE (for himself, of crime statistics by school adminis- ted any crime at all. Mr. CONRAD, Mr. DORGAN, Mr. trators and the utilization of internal At this same school, Mr. President— EXON, Mr. KERREY, Mr. campus disciplinary systems, which are where the student rapist was placed on WELLSTONE, Mr. PRESSLER, Mr. protected by privacy laws, have ren- probation—possession of a beer by an GRASSLEY, and Mr. HARKIN): dered the existing law ineffective. underage student can result in auto- S. 2066. A bill to amend the Northern All too often, we hear stories of col- matic suspension. Great Plains Rural Development Act to lege administrators who pressure vic- Furthermore, when the university the duration of the Northern Great tims to use discretion and to settle published their official crime statistics Plains Rural Development Commis- cases internally—without resort to the later that fall, no rapes were reported. sion, and for other purposes; to the criminal justice system. Offenders then It is clear that compliance with report- Committee on Agriculture, Nutrition, come before the campus tribunal, and ing requirements could be far better. and Forestry. are never publicly processed for the Colleges and universities have made crimes. Sometimes, even the victims THE NORTHERN GREAT PLAINS RURAL it their mission to provide a quality DEVELOPMENT ACT AMENDMENT ACT OF 1996 themselves cannot find out what hap- education in a suitable environment to Mr. DASCHLE. Mr. President, I ask pened in these internal trials. America’s students. By failing to dis- unanimous consent that the text of the And all too often, Mr. President, col- close the true nature of crime on their bill be printed in the RECORD. leges and universities concerned about campuses, administrations are not liv- There being no objection, the bill was their image have been found to under- ing up to this goal. We must make our ordered to be printed in the RECORD, as report crime and hide the true statis- campuses safer, by allowing students follows: tics from applicants and the media. to better protect themselves from po- S. 2066 Students are unable to discover the tential crime through the daily, public true rate of campus crime, and are disclosure of past incidents and poten- Be it enacted by the Senate and House of Rep- therefore unable to make informed de- resentatives of the United States of America in tial dangers. Congress assembled, cisions about where to go and how safe Mr. President, it is an unfortunate SECTION 1. EXTENSION OF NORTHERN GREAT certain areas truly are. fact that today’s students must take PLAINS RURAL DEVELOPMENT COM- The bill I am proposing today would care to protect themselves from serious MISSION. extend the current law, in order to fur- crime on our college campuses. Yes, Section 11 of the Northern Great Plains ther inform students of the crimes oc- protecting the privacy of accused stu- Rural Development Act (Public Law 103–318; curring on college campuses so that dents is important. But protecting the 7 U.S.C. 2661 note) is amended by striking they can better protect themselves. safety of potential victims is equally ‘‘the earlier’’ and all that follows through This bill would continue to require the period at the end and inserting ‘‘Septem- vital to providing an enriching and safe ber 30, 1997.’’. that schools receiving Federal money experience for each and every one of f compile statistics on crimes like mur- the many children who leave home der and rape. However, it would also re- each year in search of a future full of ADDITIONAL COSPONSORS quire schools to maintain a daily log— promise and prosperity. S. 607 one that is open to public inspection— Mr. President, I ask unanimous con- At the request of Mr. SIMPSON, his of all crimes committed against person sent that the text of the bill be printed name was added as a cosponsor of S. or property. in the RECORD. 607, a bill to amend the Comprehensive These daily logs would chronicle not There being no objection, the bill was Environmental Response, Compensa- only the time, place and date of the ordered to be printed in the RECORD, as tion, and Liability Act of 1980 to clar- crime, but also the names and address- follows: ify the liability of certain recycling es of all those arrested by the campus S. 2065 transactions, and for other purposes. police or security force. No more could Be it enacted by the Senate and House of Rep- S. 684 colleges hide statistics in annual re- resentatives of the United States of America in ports and with secret, unreported dis- Congress assembled, At the request of Mr. HATFIELD, the ciplinary hearings. Every student or SECTION 1. SHORT TITLE. name of the Senator from Alaska [Mr. employee would have access, every day, This Act may be cited as the ‘‘Open Cam- MURKOWSKI] was added as a cosponsor to information about every arrest oc- pus Police Logs Act of 1996’’. of S. 684, a bill to amend the Public curring on campus. SEC. 2. DAILY RECORD AND DISCLOSURE OF RE- Health Service Act to provide for pro- Some colleges and universities will PORTED CRIMES. grams of research regarding Parkin- argue that this bill is too burdensome. (a) AMENDMENT.—Section 485(f) of the son’s disease, and for other purposes. Higher Education Act of 1965 (20 U.S.C. But this legislation should not be S. 1189 1092(f) is amended by adding at the end the viewed by college administrators as an following new paragraph: At the request of Mr. DEWINE, the added burden for the campus security ‘‘(8) Each institution participating in any name of the Senator from Louisiana office, but rather as an effective tool to program under this title which maintains ei- [Mr. BREAUX] was added as a cosponsor better inform the collegiate commu- ther a police or security department of any of S. 1189, a bill to provide procedures September 11, 1996 CONGRESSIONAL RECORD — SENATE S10329 for claims for compassionate payments West Virginia [Mr. ROCKEFELLER], the (C) entered into between any entity or in- with regard to individuals with blood- Senator from Kentucky [Mr. FORD], strumentality of the legislative branch of clotting disorders, such as hemophilia, and the Senator from South Dakota the Federal Government and any individual or entity employing at least 15 full-time em- who contracted human immuno- [Mr. DASCHLE] were added as cospon- ployees. deficiency virus due to contaminated sors of S. 2030, a bill to establish na- (2) EMPLOYEE.—The term ‘‘employee’’ has blood products. tionally uniform requirements regard- the meaning given such term under section S. 1505 ing the titling and registration of sal- 3(6) of the Employee Retirement Income Se- At the request of Mr. LOTT, the name vage, nonrepairable, and rebuilt vehi- curity Act of 1974 (29 U.S.C. 1002(6)). of the Senator from North Dakota [Mr. cles, and for other purposes. (3) ENTITY OF THE LEGISLATIVE BRANCH.— The term ‘‘entity of the legislative branch’’ AMENDMENT NO. 5224 CONRAD] was added as a cosponsor of S. includes the following: 1505, a bill to reduce risk to public safe- At the request of Mr. THOMAS the (A) The House of Representatives. ty and the environment associated names of the Senator from Alaska [Mr. (B) The Senate. with pipeline transportation of natural STEVENS], and the Senator from Kansas (C) The Capitol Guide Service. gas and hazardous liquids, and for [Mrs. FRAHM] were added as cosponsors (D) The Capitol Police. other purposes. of amendment No. 5224 proposed to (E) The Congressional Budget Office. (F) The Office of the Architect of the Cap- S. 1898 H.R. 3756, a bill making appropriations itol. At the request of Mr. SIMON, the for the Treasury Department, the Unit- (G) The Office of the Attending Physician. name of the Senator from Hawaii [Mr. ed States Postal Service, the Executive (H) The Office of Compliance. INOUYE] was added as a cosponsor of S. Office of the President, and certain (4) GROUP HEALTH PLAN.—The term ‘‘group 1898, a bill to protect the genetic pri- Independent Agencies, for the fiscal health plan’’ means any plan or arrangement vacy of individuals, and for other pur- year ending September 30, 1997, and for which provides, or pays the cost of, health poses. other purposes. benefits that are actuarially equivalent to the benefits provided under the standard op- AMENDMENT NO. 5232 S. 1929 tion service benefit plan offered under chap- At the request of Mr. WELLSTONE, the At the request of Mr. KERREY the ter 89 of title 5, United States Code. name of the Senator from Massachu- names of the Senator from Maine [Ms. (5) INSTRUMENTALITY OF THE LEGISLATIVE setts [Mr. KERRY] was added as a co- SNOWE], the Senator from South Da- BRANCH.—The term ‘‘instrumentality of the sponsor of S. 1929, a bill to extend the kota [Mr. PRESSLER], and the Senator legislative branch’’ means the following: authority for the Homeless Veterans’ from Kentucky [Mr. MCCONNELL] were (A) The General Accounting Office. added as cosponsors of amendment No. (B) The Government Printing Office. Reintegration Projects for fiscal years (C) The Library of Congress. 5232 proposed to H.R. 3756, a bill mak- 1997 through 1999, and for other pur- SEC. ll03. GENERAL REQUIREMENTS CONCERN- poses. ing appropriations for the Treasury De- ING CONTRACTS COVERED UNDER S. 1944 partment, the United States Postal THIS ACT. Service, the Executive Office of the (a) IN GENERAL.—Any contract made or en- At the request of Mr. HATFIELD, the tered into by any entity or instrumentality names of the Senator from Hawaii [Mr. President, and certain Independent Agencies, for the fiscal year ending of the legislative branch of the Federal Gov- INOUYE], the Senator from Louisiana ernment shall contain provisions that re- [Mr. JOHNSTON], and the Senator from September 30, 1997, and for other pur- quire that— Connecticut [Mr. DODD] were added as poses. (1) all persons employed by the contractor cosponsors of S. 1944, a bill to establish f in the performance of the contract or at the location of the leasehold be offered health a commission to be known as the Har- AMENDMENTS SUBMITTED old Hughes Commission on Alcoholism. insurance coverage under a group health plan; and S. 1951 (2) with respect to the premiums for such At the request of Mr. FORD, the name THE TREASURY DEPARTMENT plan with respect to each employee— of the Senator from North Carolina APPROPRIATIONS ACT, 1997 (A) the contractor pay a percentage equal [Mr. FAIRCLOTH] was added as a cospon- to the average Government contribution re- sor of S. 1951, a bill to ensure the com- quired under section 8906 of title 5, United DASCHLE (AND DORGAN) petitiveness of the United States tex- States Code, for health insurance coverage AMENDMENT NO. 5234 provided under chapter 89 of such title; and tile and apparel industry. (Ordered to lie on the table.) (B) the employee pay the remainder of S. 1963 such premiums. Mr. DASCHLE (for himself, Mr. DOR- At the request of Mr. ROCKEFELLER, (b) OPTION TO PURCHASE.— the name of the Senator from Oregon GAN, and Mr. SIMON) submitted an (1) IN GENERAL.—Notwithstanding section amendment intended to be proposed by 8914 of title 5, United States Code, a contrac- [Mr. HATFIELD] was added as a cospon- tor to which subsection (a) applies that does sor of S. 1963, a bill to establish a dem- them to the bill (H.R. 3756) making ap- propriations for the Treasury Depart- not offer health insurance coverage under a onstration project to study and provide group health plan to its employees on the coverage of routine patient care costs ment, the U.S. Postal Service, the Ex- ecutive Office of the President, and date on which the contract is to take effect, for Medicare beneficiaries with cancer may obtain any health benefits plan offered who are enrolled in an approved clini- certain independent agencies, for the under chapter 89 of title 5, United States cal trial program. fiscal year ending September 30, 1997, Code, for all persons employed by the con- and for other purposes; as follows: tractor in the performance of the contract or S. 1967 At the appropriate place in the bill, insert at the location of the leasehold. Any con- At the request of Mr. BROWN, the the following: tractor that exercises the option to purchase names of the Senator from New Mexico TITLEll—HEALTH INSURANCE EQUITY such coverage shall make any Government [Mr. BINGAMAN], the Senator from Mas- FOR CONGRESSIONAL AND CONTRACT contributions required for such coverage sachusetts [Mr. KERRY], the Senator EMPLOYEES under section 8906 of title 5, United States from Illinois [Mr. SIMON], and the Sen- Code, with the employee paying the con- SEC. ll01. SHORT TITLE OF TITLE. ator from Virginia [Mr. WARNER] were tribution required for such coverage for Fed- This title may be cited as the ‘‘Congres- eral employees. added as cosponsors of S. 1967, a bill to sional Contractor Health Insurance Equity provide that members of the Armed (2) CALCULATION OF AMOUNT OF PREMIUMS.— Act’’. Subject to paragraph (3)(B), the Director of Forces who performed services for the SEC. ll02. DEFINITIONS. the Office of Personnel Management shall peacekeeping efforts in Somalia shall For purposes of this title: calculate the amount of premiums for health be entitled to tax benefits in the same (1) CONTRACT.—The term ‘‘contract’’ means benefits plans made available to contractor manner as if such services were per- any contract for items or services or any employees under paragraph (1) separately formed in a combat zone, and for other lease of Government property (including any from Federal employees and annuitants en- purposes. subcontract of such contract or any sublease rolled in such plans. of such lease)— (3) REVIEW BY OFFICE OF PERSONNEL MAN- S. 2030 (A) the consideration with respect to which AGEMENT.— At the request of Mr. LOTT, the is greater than $75,000 per year, (A) ANNUAL REVIEW.—The Director of the names of the Senator from South Da- (B) with respect to a contract for services, Office of Personnel Management shall review kota [Mr. PRESSLER], the Senator from requires at least 1000 hours of services, and at the end of each calendar year whether the S10330 CONGRESSIONAL RECORD — SENATE September 11, 1996

nonapplication of paragraph (2) would result (b) SENSE OF THE SENATE.—It is the sense ‘‘(A) DETERMINATION OF LIKELIHOOD OF in higher adverse selection, risk segmenta- of the Senate that the Committee on Labor CRIMINAL ACTIVITY.—If an accountant en- tion in, or a substantial increase in pre- and Human Resources of the Senate, taking gaged by the administrator of an employee miums for such health benefits plans. Such into account any relevant findings of the Na- pension benefit plan under section review shall include a study by the Director tional Commission on Health Care Quality 103(a)(3)(A) detects or otherwise becomes of the health care utilization and risks of and other public and private entities with aware of information indicating that a contractor employees. The Director shall expertise in quality health care service de- criminal activity may have occurred with re- submit a report to the President, the Speak- livery, should act expeditiously in the first spect to the plan, the accountant shall, in er of the House of Representatives, and the session of the 105th Congress to schedule accordance with generally accepted auditing President pro tempore of the Senate which hearings and executive session consideration standards, determine whether it is likely shall contain the results of such review. of legislation designed to ensure that pa- that the criminal activity has occurred. (B) NONAPPLICATION OF PARAGRAPH (2).—Be- tients be given access to all relevant infor- ‘‘(B) NOTIFICATION.—If an accountant de- ginning in the calendar year following a cer- mation concerning their health care so as to termines under subparagraph (A) that it is tification by the Director of the Office of permit such patients, in consultation with likely that the criminal activity has oc- Personnel Management under subparagraph their physicians, to make appropriate deci- curred, the accountant shall, as soon as prac- (A) that the nonapplication of paragraph (2) sions regarding their health care, and that ticable— will not result in higher adverse selection, the Senate should promptly consider that ‘‘(i) notify and fully inform the plan ad- risk segmentation in, or a substantial in- legislation. ministrator of the criminal activity in writ- crease in premiums for such health benefits ing, or plans, paragraph (2) shall not apply. SIMON (AND JEFFORDS) ‘‘(ii) if the accountant has determined that (4) REQUIREMENT OF OPM.—The Director of AMENDMENT NO. 5236 the criminal activity involved an individual the Office of Personnel Management shall who is the plan administrator or who is a take such actions as are appropriate to en- (Ordered to lie on the table.) Mr. SIMON (for himself and Mr. JEF- senior official of the plan administrator, no- able a contractor described in paragraph (1) tify and fully inform the named fiduciary of to obtain the health insurance described in FORDS) submitted an amendment in- tended to be proposed by them to the the plan who is not the plan administrator such paragraph. and who is designated under section 402(b)(5) (c) ADMINISTRATIVE FUNCTIONS.— bill, H.R. 3756, supra; as follows: to receive such notice of the criminal activ- (1) IN GENERAL.—The office within the en- At the appropriate place in the bill, insert ity in writing. tity or instrumentality of the legislative the following new title: ‘‘(2) NOTIFICATION BY ACCOUNTANT WHERE branch of the Federal Government which ad- TITLE ll—PENSION AUDIT FAILURE TO TAKE REMEDIAL ACTION.—If, after ministers the health benefits plans for Fed- IMPROVEMENT ACT OF 1996 providing the notification required under eral employees of such entity or instrumen- ll paragraph (1)(B), the accountant concludes tality shall perform such tasks with respect SEC. . SHORT TITLE. This title may be cited as the ‘‘Pension that— to plan coverage purchased under subsection Audit Improvement Act of 1996’’. ‘‘(A) the plan administrator or the des- (b) by contractors with contracts with such ll ignated named fiduciary has been fully in- entity or instrumentality. SEC. . PROVISIONS RELATING TO LIMITED SCOPE AUDIT. formed of the criminal activity, (2) WAIVER AUTHORITY.—Waiver of the re- (a) IN GENERAL.—Subparagraph (C) of sec- ‘‘(B) the criminal activity has a material quirements of this title may be made by such tion 103(a)(3) of the Employee Retirement In- effect on the financial statements of the office upon application. come Security Act of 1974 (29 U.S.C. plan, and SEC. ll04. EFFECTIVE DATE. 1023(a)(3)(C)) is amended by adding at the end ‘‘(C) the plan administrator or the des- (a) IN GENERAL.—This title shall apply the following new clause: ignated named fiduciary has not taken time- with respect to contracts executed, modified, ‘‘(ii) If an accountant is offering his opin- ly and appropriate remedial actions with re- or renewed on or after January 1, 1997. ion under this section in the case of an em- (b) TERMINATION.— spect to the criminal activity, ployee pension benefit plan, the accountant (1) IN GENERAL.—This title shall not apply the accountant shall, as soon as practicable, shall, to the extent consistent with generally on and after October 1, 2001. report its conclusions in writing to the plan accepted auditing standards, rely on the (2) TRANSITION RULE.—In the case of any administrator or designated named fidu- work of any independent public accountant contract under which, pursuant to this title, ciary, as applicable. of any bank or similar institution or insur- health insurance coverage is provided for ‘‘(3) NOTIFICATION OF SECRETARY.— ance carrier regulated and supervised and calendar year 2001, the contractor and the ‘‘(A) IN GENERAL.—A plan administrator or subject to periodic investigation by a State employees shall, notwithstanding section designated named fiduciary of a plan receiv- or Federal agency that holds assets or proc- ll03(a)(2), pay 11⁄3 of the otherwise required ing a report under paragraph (2) shall, not esses transactions of the employee pension monthly premium for such coverage in later than 5 business days after receipt of benefit plan.’’ monthly installments during the period be- (b) CONFORMING AMENDMENTS.— such report— ginning on January 1, 2001, and ending before (1) Section 103(a)(3)(A) of such Act (29 ‘‘(i) notify the Secretary of such report, October 1, 2001. U.S.C. 1023(a)(3)(A)) is amended by striking and ‘‘subparagraph (C)’’ and inserting ‘‘subpara- ‘‘(ii) furnish to the accountant making KASSEBAUM AMENDMENT NO. 5235 graph (C)(i)’’. such report a copy of the notice furnished to Mrs. KASSEBAUM proposed an (2) Section 103(a)(3)(C) of such Act (29 the Secretary under clause (i). U.S.C. 1023(a)(3)(C)) is amended by striking ‘‘(B) FAILURE TO RECEIVE NOTICE.—If an ac- amendment to the bill, H.R. 3756, countant does not receive a copy of the no- supra; as follows: ‘‘(C) The’’ and inserting ‘‘(C)(i) In the case of an employee benefit plan other than an em- tice under subparagraph (A)(ii) within the At the end of the committee amendment, ployee pension benefit plan, the’’. time period prescribed therein, the account- insert the following new section: (c) EFFECTIVE DATE.—The amendments ant shall— SEC. . PROTECTION OF PATIENT COMMUNICA- made by this section shall apply with respect ‘‘(i) resign from engagement with the plan, TIONS. to opinions required under section or (a) FINDINGS.—Congress finds that— 103(a)(3)(A) of the Employee Retirement In- ‘‘(ii) furnish to the Secretary a copy of its (1) the health care market is dynamic, and come Security Act of 1974 for plan years be- report under paragraph (2) not later than 1 the rapid changes seen in recent years can be ginning on or after January 1 of the calendar business day following the close of such time expected to continue; period. (2) the transformation of the health care year following the date of the enactment of ‘‘(4) RESPONSE BY SECRETARY.— market has promoted the development of in- this Act. ‘‘(A) IN GENERAL.—Any investigation by novative new treatments and more efficient SEC. ll. REPORTING AND ENFORCEMENT RE- the Secretary in response to the notification delivery systems, but has also raised new QUIREMENTS FOR EMPLOYEE PEN- SION BENEFIT PLANS. under subparagraph (A)(i) or (B)(ii) of para- and complex health policy challenges, touch- (a) IN GENERAL.—Part 1 of subtitle B of graph (3) shall be completed within 180 days ing on issues such as access, affordability, title I of the Employee Retirement Income of the receipt of such notification, unless the cost containment, and quality; (3) appropriately addressing these chal- Security Act of 1974 (29 U.S.C. 1021 et seq.) is Secretary determines that additional time is lenges and the trade-offs they involve will amended— necessary to complete the investigation due require thoughtful and deliberate consider- (1) by redesignating section 111 as section to— ation by lawmakers, providers, consumers, 112, and ‘‘(i) the complexity of the investigation, and third-party payers; and (2) by inserting after section 110 the follow- ‘‘(ii) the lack of cooperation by plan rep- (4) the Patient Communications Protec- ing new section: resentatives, or tion Act of 1996 (S. 2005, 104th Congress) was ‘‘REPORTING OF CERTAIN EVENTS INVOLVING ‘‘(iii) the need for coordination with other first introduced in the Senate on July 31, PENSION PLANS law enforcement agencies. 1996, and has not been subject to hearings or ‘‘SEC. 111. (a) REQUIRED NOTIFICATIONS.— The Secretary’s failure to comply with this other review by the Senate or any of its com- ‘‘(1) NOTIFICATIONS BY ACCOUNTANT TO PLAN subparagraph shall not be a defense to any mittees. ADMINISTRATOR.— civil complaint or criminal charge arising September 11, 1996 CONGRESSIONAL RECORD — SENATE S10331 from notification under subparagraph (A)(i) made within the required number of business (5) by adding after subclause (III) (as so re- or (B)(ii) of paragraph (3). days— designated), and flush with clause (i), the fol- ‘‘(B) DISCLOSURE OF REPORT PROHIBITED.— ‘‘(1) the day on which such act or omission lowing: ‘‘(i) IN GENERAL.—Notwithstanding section begins shall not be included; and ‘‘but only if such person meets the require- 106 and except as provided in clause (ii), an ‘‘(2) Saturdays, Sundays, and legal holi- ments of clauses (ii) and (iii) with respect to officer or employee of the United States days shall not be included. such engagement.’’; and shall not disclose to the public any report For purposes of this subsection, the term (6) by adding at the end the following new described in paragraph (2) which is furnished ‘legal holiday’ means any Federal legal holi- clauses: to the Secretary under paragraph (3). day and any other day appointed as a holiday ‘‘(ii) A person meets the requirements of ‘‘(ii) EXCEPTIONS.—Clause (i) shall not be by the State in which the person responsible this clause with respect to an engagement of construed to prohibit the disclosure of such for making the notification principally con- such person as an accountant under subpara- report by an officer or employee of the Unit- ducts his business. graph (A) if such person— ed States— ‘‘(d) IMMUNITY FOR GOOD FAITH NOTIFICA- ‘‘(I) has in operation an appropriate inter- ‘‘(I) in carrying out their duties under this TION OR REPORT.—Except as provided in this nal quality control system; title (other than section 106), or Act, no accountant, plan administrator, or ‘‘(II) has undergone a qualified external ‘‘(II) to any law enforcement authority of designated named fiduciary shall be liable to quality control review of the person’s ac- any Federal agency, any State or local gov- any person for any finding, conclusion, or counting and auditing practices, including ernment or political subdivision thereof, or statement made in any notification or report such practices relevant to employee pension any foreign country for purposes of carrying made pursuant to subsection (a) or (b), or benefit plans (if any), during the 3-year pe- out their official duties. pursuant to any regulations issued there- riod immediately preceding such engage- ‘‘(iii) PENALTY FOR DISCLOSURE.—Any per- under, if such finding, conclusion, or state- ment; and son who knowingly or willfully discloses any ment is made in good faith.’’ ‘‘(III) has completed, within the 2-year pe- report in violation of this subparagraph (b) DESIGNATION OF NAMED FIDUCIARY.— riod immediately preceding such engage- shall, upon conviction, be guilty of a felony Section 402(b) of the Employee Retirement ment, at least 80 hours of continuing edu- and punished by a fine in any amount not ex- Income Security Act of 1974 (29 U.S.C. cation or training which contributes to the ceeding $5,000, or imprisonment of not more 1102(b)) is amended by striking ‘‘and’’ at the accountant’s professional proficiency and than 5 years, or both, together with the costs end of paragraph (3), by striking the period which meets such requirements as may be of prosecution. In addition to any other pun- at the end of paragraph (4) and inserting ‘‘, prescribed by the Secretary in regulations. ishment, such person shall be dismissed from and’’, and by adding at the end the following The Secretary shall issue the regulations office or discharged from employment upon new paragraph: under subclause (III) no later than December conviction for such offense. ‘‘(5) if such plan engages an independent 31, 1997. qualified public accountant under section ‘‘(5) CRIMINAL ACTIVITY DEFINED.— ‘‘(iii) A person meets the requirements of ‘‘(A) For purposes of this subsection, the 103(a)(3)(A), designate a named fiduciary this clause with respect to an engagement of term ‘criminal activity’ means— other than the plan administrator to receive such person as an accountant under subpara- ‘‘(i) a theft, embezzlement, or a violation any notification from such accountant re- graph (A) if such person meets such addi- of section 664 of title 18, United States Code quired under section 111(a)(1)(B)(ii).’’ tional requirements and qualifications of (c) CIVIL PENALTY.— (relating to theft or embezzlement from an regulations which the Secretary deems nec- (1) IN GENERAL.—Section 502(c) of the Em- employee benefit plan); essary to ensure the quality of plan audits. ployee Retirement Income Security Act of ‘‘(ii) an extortion or a violation of section ‘‘(iv) For purposes of clause (ii)(II), an ex- 1974 (29 U.S.C. 1132(c)) is amended by adding 1951 of such title 18 (relating to interference ternal quality control review shall be treated at the end the following new paragraph: with commerce by threats or violence); as qualified with respect to a person referred ‘‘(5) The Secretary may assess a civil pen- to in clause (ii) if— ‘‘(iii) a bribery, a kickback, or a violation alty of up to $50,000 against any plan admin- of section 1954 of such title 18 (relating to ‘‘(I) such review is performed in accordance istrator or accountant who knowingly and with the requirements of external quality offer, acceptance, or solicitation to influence willfully fails to provide the Secretary with operations of an employee benefit plan); control review programs of recognized audit- any notification as required under section ing standard-setting bodies, as determined ‘‘(iv) a violation of section 1027 of such 111.’’ title 18 (relating to false statements and con- under regulations of the Secretary, and (2) CONFORMING AMENDMENT.—Section ‘‘(II) in the case of any such person who cealment of facts in relation to employer 502(a)(6) of such Act (29 U.S.C. 1132(a)(6)) is benefit plan records); or has, during the peer review period, conducted amended by striking ‘‘subsection (c)(2) or (i) one or more previous audits of employee pen- ‘‘(v) a violation of section 411, 501, or 511 of or (l)’’ and inserting ‘‘paragraph (2), (4), or (5) this title (relating to criminal violations). sion benefit plans, such review includes the of subsection (c) or subsection (i) or (l)’’. review of an appropriate number (determined ‘‘(B) The term ‘criminal activity’ shall not (d) CLERICAL AMENDMENTS.— include any act or omission described in this as provided in such regulations, but in no (1) Section 514(d) of the Employee Retire- case less than one) of plan audits in relation paragraph involving less than $1,000 unless ment Income Security Act of 1974 (29 U.S.C. there is reason to believe that the act or to the scale of such person’s auditing prac- 1144(d)) is amended by striking ‘‘111’’ and in- tice. omission may bear on the integrity of plan serting ‘‘112’’. The Secretary shall issue the regulations management. (2) The table of contents in section 1 of under subclause (I) no later than December ‘‘(b) NOTIFICATION UPON TERMINATION OF such Act is amended by striking the item re- 31, 1997.’’ ENGAGEMENT OF ACCOUNTANT.— lating to section 111 and inserting the follow- (b) EFFECTIVE DATES.— ‘‘(1) NOTIFICATION BY PLAN ADMINIS- ing new items: (1) IN GENERAL.—Except as provided in TRATOR.—Within 5 business days after the ‘‘Sec. 111. Reporting of certain events involv- paragraph (2), the amendments made by this termination of an engagement for auditing ing pension plans. section shall apply with respect to plan services under section 103(a)(3)(A) with re- ‘‘Sec. 112. Repeal and effective date.’’ years beginning on or after the date which is spect to an employee pension benefit plan, (e) EFFECTIVE DATE.—The amendments 3 years after the date of the enactment of the administrator of such plan shall— made by this section shall apply with respect this Act. ‘‘(A) notify the Secretary in writing of to any criminal activity or termination of (2) RESTRICTIONS ON CONDUCTING EXAMINA- such termination, giving the reasons for engagement described in such amendments TIONS.—Clause (iii) of section 103(a)(3)(D) of such termination, and only if the 5-day period described in such the Employee Retirement Income Security ‘‘(B) furnish the accountant whose engage- amendments in connection with such crimi- Act of 1974 (as added by subsection (a)(6)) ment was terminated with a copy of the no- nal activity or termination commences at shall take effect on the date of enactment of tification sent to the Secretary. least 90 days after the date of the enactment this Act. ‘‘(2) NOTIFICATION BY ACCOUNTANT.—If the of this Act. SEC. ll. CLARIFICATION OF FIDUCIARY PEN- accountant referred to in paragraph (1)(B) SEC. ll. ADDITIONAL REQUIREMENTS FOR ALTIES. has not received a copy of the administra- QUALIFIED PUBLIC ACCOUNTANTS. (a) MODIFICATION OF PROHIBITION OF AS- tor’s notification to the Secretary as re- (a) IN GENERAL.—Section 103(a)(3)(D) of the SIGNMENT OR ALIENATION.— quired under paragraph (1)(B), or if the ac- Employee Retirement Income Security Act (1) AMENDMENT TO ERISA.—Section 206(d) of countant disagrees with the reasons given in of 1974 (29 U.S.C. 1023(a)(3)(D)) is amended— the Employee Retirement Income Security the notification of termination of the en- (1) by inserting ‘‘(i)’’ after ‘‘(D)’’; Act of 1974 (29 U.S.C. 1056(d)) is amended by gagement for auditing services, the account- (2) by inserting ‘‘, with respect to any en- adding at the end the following new para- ant shall notify the Secretary in writing of gagement of an accountant under subpara- graphs: the termination, giving the reasons for the graph (A)’’ after ‘‘means’’; ‘‘(4) Paragraph (1) shall not apply to any termination, within 10 business days after (3) by redesignating clauses (i), (ii), and offset of a participant’s accrued benefit in an the termination of the engagement. (iii) as subclauses (I), (II), and (III), respec- employee pension benefit plan against an ‘‘(c) DETERMINATION OF PERIODS REQUIRED tively; amount that the participant is ordered or re- FOR NOTIFICATION.—In determining whether (4) by striking the period at the end of sub- quired to pay to the plan if— a notification required under this section clause (III) (as so redesignated) and inserting ‘‘(A) the order or requirement to pay with respect to any act or omission has been a comma; arises— S10332 CONGRESSIONAL RECORD — SENATE September 11, 1996 ‘‘(i) under a judgment of conviction for a violation (or alleged violation) of part 4 of violation, whether paid voluntarily or by crime involving such plan, subtitle B of title I of such Act, order of a court in a judicial proceeding in- ‘‘(ii) under a civil judgment (including a ‘‘(ii) the judgment, order, decree, or settle- stituted by the Secretary under subsection consent order or decree) entered by a court ment agreement expressly provides for the (a)(2) or (a)(5). The Secretary may, in the in an action brought in connection with a offset of all or part of the amount ordered or Secretary’s sole discretion, extend the 30-day violation (or alleged violation) of part 4 of required to be paid to the plan against the period described in the preceding sentence.’’ this subtitle, or participant’s accrued benefit in the plan, and (3) OTHER RULES.—Section 502(l) of such ‘‘(iii) pursuant to a settlement agreement ‘‘(iii) if the participant has a spouse at the Act (29 U.S.C. 1132(l)) is amended by adding between the Secretary and the participant, time at which the offset is to be made— at the end the following new paragraphs: or a settlement agreement between the Pen- ‘‘(I) such spouse has consented in writing ‘‘(5) A person shall be jointly and severally sion Benefit Guaranty Corporation and the to such offset and such consent is witnessed liable for the penalty described in paragraph participant, in connection with a violation by a notary public or representative of the (1) to the same extent that such person is (or alleged violation) of part 4 of this sub- plan, jointly and severally liable for the applicable title, ‘‘(II) such spouse is ordered or required to recovery amount on which the penalty is ‘‘(B) the judgment, order, decree, or settle- pay in such judgment, order, decree, or set- based. ment agreement expressly provides for the tlement an amount to the plan in connection ‘‘(6) No penalty shall be assessed under this offset of all or part of the amount ordered or with a violation of part 4 of subtitle B of subsection unless the person against whom required to be paid to the plan against the title I of such Act, or the penalty is assessed is given notice and participant’s accrued benefit in the plan, and ‘‘(III) in such judgment, order, decree, or opportunity for a hearing with respect to the ‘‘(C) if the participant has a spouse at the settlement, such spouse retains the right to violation and applicable recovery amount.’’ time at which the offset is to be made— receive the value of the survivor annuity (4) EFFECTIVE DATES.— ‘‘(i) such spouse has consented in writing under a qualified joint and survivor annuity (A) IN GENERAL.—The amendments made to such offset and such consent is witnessed provided pursuant to paragraph (11)(A)(i) and by this subsection shall apply to any breach by a notary public or representative of the under a qualified preretirement survivor an- of fiduciary responsibility or other violation plan, nuity provided pursuant to paragraph of part 4 of subtitle B of title I of the Em- ‘‘(ii) such spouse is ordered or required in 11(A)(ii), determined in accordance with sub- ployment Retirement Income Security Act such judgment, order, decree, or settlement paragraph (D). of 1974 occurring on or after the date of the to pay an amount to the plan in connection ‘‘(D) DETERMINATION OF VALUE OF SURVIVOR enactment of this Act. with a violation of part 4 of this subtitle, or ANNUITY IN CONNECTION WITH OFFSET.—The (B) TRANSITION RULE.—In applying the ‘‘(iii) in such judgment, order, decree, or value of the survivor annuity described in amendment made by paragraph (2) (relating settlement, such spouse retains the right to subparagraph (C)(iii)(III) shall be determined to applicable recovery amount), a breach or receive the value of the survivor annuity as if— other violation occurring before the date of under a qualified joint and survivor annuity ‘‘(i) the participant terminated employ- the enactment of this Act which continues provided pursuant to section 205(a)(1) and ment on the date of the offset, after the 180th day after such date (and under a qualified preretirement survivor an- ‘‘(ii) there was no offset, which may be discontinued at any time dur- nuity provided pursuant to section 205(a)(2), ‘‘(iii) the plan permitted retirement only ing its existence) shall be treated as having determined in accordance with paragraph (5). on or after normal retirement age, occurred after such date of enactment. ‘‘(5)(A) The value of the survivor annuity ‘‘(iv) the plan provided only the minimum- described in paragraph (4)(C)(iii) shall be de- required qualified joint and survivor annu- GRAMS AMENDMENT NO. 5237 ity, and termined as if— (Ordered to lie on the table.) ‘‘(i) the participant terminated employ- ‘‘(v) the amount of the qualified preretire- ment on the date of the offset, ment survivor annuity under the plan is Mr. GRAMS submitted an amend- ‘‘(ii) there was no offset, equal to the amount of the survivor annuity ment intended to be proposed by him ‘‘(iii) the plan permitted retirement only payable under the minimum-required quali- to the bill, H.R. 3756, supra; as follows: on or after normal retirement age, fied joint and survivor annuity. At appropriate place insert the following ‘‘(iv) the plan provided only the minimum- For purposes of this subparagraph, the term section: required qualified joint and survivor annu- ‘minimum-required qualified joint and survi- ‘‘SEC. . IMPROVEMENT OF THE IRS 1–800 HELP ity, and vor annuity’ means the qualified joint and LINE SERVICE. ‘‘(v) the amount of the qualified preretire- survivor annuity which is the actuarial ‘‘(a) Funds made available by this or any ment survivor annuity under the plan is equivalent of a single annuity for the life of other Act to the Internal Revenue Services equal to the amount of the survivor annuity the participant and under which the survivor shall be available for improved facilities and payable under the minimum-required quali- annuity is 50 percent of the amount of the increased manpower to provide sufficient fied joint and survivor annuity. annuity which is payable during the joint and effective 1–800 help line for taxpayers. (b) The Commissioner shall make the im- ‘‘(B) For purposes of this paragraph, the lives of the participant and the spouse. provement of the IRS 1–800 help line service term ‘minimum-required qualified joint and ‘‘(E) WAIVER OF CERTAIN DISTRIBUTION RE- a priority and allocate resources necessary survivor annuity’ means the qualified joint QUIREMENTS.—With respect to the require- to ensure the increase in phone lines and and survivor annuity which is the actuarial ments of subsections (a) and (k) of section staff to improve the IRS 1-800 help line serv- equivalent of a single annuity for the life of 401, section 403(b), and section 409(d), a plan ice. the participant and under which the survivor shall not be treated as failing to meet such annuity is 50 percent of the amount of the requirements solely by reason of an offset annuity which is payable during the joint under subparagraph (C).’’ BRYAN AMENDMENT NO. 5238 lives of the participant and the spouse.’’ (3) EFFECTIVE DATE.—The amendment (Ordered to lie on the table.) (2) AMENDMENT TO INTERNAL REVENUE made by this subsection shall apply to judg- Mr. BRYAN submitted an amend- CODE.—Section 401(a)(13) of the Internal Rev- ments, orders, and decrees issued, and settle- ment intended to be proposed by him enue Code of 1986 is amended by adding at ment agreements entered into, on or after to the bill, H.R. 3756, supra; as follows: the end the following new subparagraphs: the date of enactment of this Act. At the appropriate place in the bill, insert ‘‘(C) SPECIAL RULE FOR CERTAIN JUDGMENTS (b) CIVIL PENALTIES FOR BREACH OF FIDU- the following new section: AND SETTLEMENTS.—Subparagraph (A) shall CIARY RESPONSIBILITY.— SEC. ll. FEDERAL RETIREMENT PROVISIONS not apply to any offset of a participant’s ac- (1) IMPOSITION AND AMOUNT OF PENALTY RELATING TO MEMBERS OF CON- crued benefit in a plan against an amount MADE DISCRETIONARY.—Section 502(l)(1) of the GRESS AND CONGRESSIONAL EM- that the participant is ordered or required to Employee Retirement Income Security Act PLOYEES. pay to the plan if— of 1974 (29 U.S.C. 1132(l)(1)) is amended— (a) SHORT TITLE.—This section may be ‘‘(i) the order or requirement to pay (A) by striking ‘‘shall’’ and inserting cited as the ‘‘Congressional Annuity Reform arises— ‘‘may’’, and Act of 1996’’. ‘‘(I) under a judgment of conviction for a (B) by striking ‘‘equal to’’ and inserting (b) RELATING TO THE YEARS OF SERVICE AS crime involving such plan, ‘‘not greater than’’. A MEMBER OF CONGRESS AND CONGRESSIONAL ‘‘(II) under a civil judgment (including a (2) APPLICABLE RECOVERY AMOUNT.—Sec- EMPLOYEES FOR PURPOSES OF COMPUTING AN consent order or decree) entered by a court tion 502(l)(2) of such Act (29 U.S.C. 1132(l)(2)) ANNUITY.— in an action brought in connection with a is amended to read as follows: (1) CSRS.—Section 8339 of title 5, United violation (or alleged violation) of part 4 of ‘‘(2) For purposes of paragraph (1), the States Code, is amended— subtitle B of title I of the Employee Retire- term ‘applicable recovery amount’ means (A) in subsection (a) by inserting ‘‘or Mem- ment Income Security Act of 1974, or any amount which is recovered from (or on ber’’ after ‘‘employee’’; ‘‘(III) pursuant to a settlement agreement behalf of) any fiduciary or other person with (B) by striking subsections (b) and (c); and between the Secretary of Labor and the par- respect to a breach or violation described in (C) in subsection (h)— ticipant, or a settlement agreement between paragraph (1) on or after the 30th day follow- (i) in the first sentence by striking out the Pension Benefit Guaranty Corporation ing receipt by such fiduciary or other person ‘‘subsections (a), (b)’’ and inserting in lieu and the participant, in connection with a of written notice from the Secretary of the thereof ‘‘subsections (a),’’; and September 11, 1996 CONGRESSIONAL RECORD — SENATE S10333

(ii) in the second sentence by striking out (1) SHORT TITLE.—Subsection (a) shall take Social Security Administration pursuant to ‘‘subsections (c) and (f)’’ and inserting in lieu effect on the date of the enactment of this section 7131 of title 5, United States Code, or thereof ‘‘subsections (a) and (f)’’. Act. for facilities or support services for labor or- (2) FERS.—Section 8415 of title 5, United (2) COLA ADJUSTMENTS.—The amendments ganizations pursuant to policies, regulations, States Code, is amended— made by subsection (b) shall take effect on or procedures referred to in section 7135(b) of (A) by striking subsections (b) and (c); the date of the enactment of this Act and such title. (B) in subsections (a) and (g) by inserting shall apply with respect to annuities com- ‘‘or Member’’ after ‘‘employee’’ each place it mencing on or after such date. WARNER AMENDMENT NO. 5240 appears; and (3) YEARS OF SERVICE; ANNUITY COMPUTA- (C) in subsection (g)(2) by striking out TION.—(A) The amendments made by sub- Mr. WARNER proposed an amend- ‘‘Congressional employee’’. section (c) shall take effect on the date of ment to the bill, H.R. 3756, supra; as (c) CONTRIBUTION RATES.— the enactment of this Act and shall apply follows: (1) CSRS.—(A) Section 8334(a)(1) of title 5, only with regard to the computation of an One page 53, beginning on line 23, strike United States Code, is amended— annuity relating to— ‘‘and in compliance with the reprogramming (i) by striking out ‘‘of an employee, 71⁄2 per- (i) the service of a Member of Congress as guidelines of the appropriate Committee of cent of the basic pay of a Congressional em- a Member or as a Congressional employee the House and Senate.’’ ployee,’’ and inserting in lieu thereof ‘‘of an performed after such date; and employee, a Member,’’; and (ii) the service of a Congressional employee LAUTENBERG AMENDMENTS NOS. (ii) by striking out ‘‘basic pay of a Mem- as a Congressional employee performed after ber,’’ and inserting in lieu thereof ‘‘basic pay such date. 5241–5243 of’’. (B) An annuity shall be computed as (Ordered to lie on the table.) (B) The table under section 8334(c) of title though the amendments made under sub- Mr. LAUTENBERG submitted three 5, United States Code, is amended— section (c) had not been enacted with regard amendments intended to be proposed (i) in the item relating to Member or em- to— ployee for Congressional employee service by by him to the bill, H.R. 3756, supra; as (i) the service of a Member of Congress as follows: striking out a Member or a Congressional employee or military service performed before the date of AMENDMENT NO. 5241

‘‘ 71⁄2...... After December 31, the enactment of this Act; and At the end of the committee amendment 1969.’’ (ii) the service of a Congressional employee insert the following: as a Congressional employee or military and inserting in lieu thereof SEC. . GUN BAN FOR INDIVIDUALS COMMITTING service performed before the date of the en- DOMESTIC VIOLENCE. actment of this Act. (a) DEFINITIONS.—Section 921(a) of title 18, ‘‘ 71⁄2...... December 31, 1969 to (4) CONTRIBUTION RATES.—The amendments United States Code, is amended by adding at (but not including) made by subsection (d) shall take effect on the end the following new paragraph: the effective date of the first day of the first applicable pay pe- ‘‘(33) The term ‘crime involving domestic the Congressional riod beginning on or after the date of the en- violence’ means a felony or misdemeanor Annuity Reform Act of 1996. actment of this Act. crime of violence, regardless of length, term, ‘‘ 7...... On and after the ef- (5) REGULATIONS.—The provisions of sub- or manner of punishment, committed by a fective date of the section (e) shall take effect on the date of current or former spouse, parent, or guard- Congressional An- the enactment of this Act. ian of the victim, by a person with whom the nuity Reform Act (6) ALTERNATIVE EFFECTIVE DATE RELATING victim shares a child in common, by a person of 1996.’’; TO MEMBERS OF CONGRESS.—If a court of com- who is cohabiting with or has cohabited with and petent jurisdiction makes a final determina- the victim as a spouse, parent, or guardian, (ii) in the item relating to Member for tion that a provision of this subsection vio- or by a person similarly situated to a spouse, Member service by striking out lates the 27th amendment of the United parent, or guardian of the victim under the States Constitution, the effective date and domestic or family violence laws of the juris- application dates relating to Members of diction in which such felony or misdemeanor ‘‘ 8...... After December 31, Congress shall be January 3, 1997. was committed.’’. 1969.’’ (b) UNLAWFUL ACTS.—Section 922 of title and inserting in lieu thereof FAIRCLOTH AMENDMENT NO. 5239 18, United States Code, is amended— (1) in subsection (d)— (Ordered to lie on the table.) (A) by striking ‘‘or’’ at the end of para- ‘‘ 8...... December 31, 1969 to Mr. FAIRCLOTH submitted an graph (7); (but not including) (B) by striking the period at the end of the effective date of amendment intended to be proposed by the Congressional him to the bill, H.R. 3756, supra; as fol- paragraph (8) and inserting ‘‘; or’’; and Annuity Reform lows: (C) by inserting after paragraph (8) the fol- Act of 1996. lowing new paragraph: ‘‘ 7...... On and after the ef- At the appropriate place, insert the follow- ‘‘(9) has been convicted in any court of any fective date of the ing: crime involving domestic violence, if the in- Congressional An- SEC. . (a) SENSE OF THE SENATE REGARD- dividual has been represented by counsel or nuity Reform Act ING TRANSFERS FROM MEDICARE TRUST knowingly and intelligently waived the right of 1996.’’. FUNDS.—It is the sense of the Senate that to counsel.’’; (2) FERS.—Section 8422(a)(2) of title 5, none of the funds made available in this Act (2) in subsection (g)— United States Code, is amended— under the heading ‘‘Title II—Department of (A) by striking ‘‘or’’ at the end of para- (A) in subparagraph (A) by striking out Health and Human Services—Health Care Fi- graph (7); ‘‘employee (other than a law enforcement of- nancing Administration—Program Manage- (B) in paragraph (8), by striking the ficer, firefighter, air traffic controller, or ment’’ for transfer from the Federal Hospital comma and inserting ‘‘; or’’; and Congressional employee)’’ and inserting in Insurance Trust Fund or the Federal Supple- (C) by inserting after paragraph (8) the fol- lieu thereof ‘‘employee or Member (other mentary Medical Insurance Trust Fund lowing new paragraph: than a law enforcement officer, firefighter, should be used for expenditures for official ‘‘(9) has been convicted in any court of any or air traffic controller)’’; and time for employees of the Department of crime involving domestic violence, if the in- .(B) in subparagraph (B)— Health and Human Services pursuant to sec- dividual has been represented by counsel or (i) by striking out ‘‘a Member,’’; and tion 7131 of title 5, United States Code, or for knowingly and intelligently waived the right (ii) by striking out ‘‘air traffic controller, facilities or support services for labor orga- to counsel,’’; and or Congressional employee,’’ and inserting in nizations pursuant to policies, regulations, (3) in subsection (s)(3)(B)(i), by inserting lieu thereof ‘‘or air traffic controller,’’. or procedures referred to in section 7135(b) of before the semicolon the following: ‘‘and has (d) ADMINISTRATIVE REGULATIONS.—The Of- such title. not been convicted in any court of any crime fice of Personnel Management, in consulta- (b) SENSE OF THE SENATE REGARDING involving domestic violence, if the individual tion with the Secretary of the Senate and TRANSFERS FROM OASDI TRUST FUND.—It is has been represented by counsel or know- the Clerk of the House of Representatives, the sense of the Senate that none of the ingly and intelligently waived the right to may prescribe regulations to carry out the funds made available in this Act under the counsel’’. provisions of this section and the amend- heading ‘‘Title IV—Related Agencies—Social (c) RULES AND REGULATIONS.—Section ments made by this section for applicable Security Administration—Limitation on Ad- 926(a) of title 18, United States Code, is employees and Members of Congress. ministrative Expenses’’ for transfer from the amended— (e) EFFECTIVE DATES.— Federal Old-Age and Survivors Insurance (1) by striking ‘‘and’’ at the end of para- Trust Fund or the Federal Disability Insur- graph (2); ance Trust Fund should be used for expendi- (2) by striking the period at the end of tures for official time for employees of the paragraph (3) and inserting ‘‘; and’’; and S10334 CONGRESSIONAL RECORD — SENATE September 11, 1996 (3) by inserting after paragraph (3) the fol- or manner of punishment, committed by a are made have considerably moved in inter- lowing new paragraph: current or former spouse, parent, or guard- state commerce; ‘‘(4) regulations providing for the effective ian of the victim, by a person with whom the ‘‘(E) while criminals freely move from receipt and secure storage of firearms relin- victim shares a child in common, by a person State to State, ordinary citizens and foreign quished by or seized from persons described who is cohabiting with or has cohabited with visitors may fear to travel to or through cer- in subsection (d)(9) or (g)(9) of section 922.’’. the victim as a spouse, parent, or guardian, tain parts of the country due to concern or by a person similarly situated to a spouse, about violent crime and gun violence, and AMENDMENT NO. 5242 parent, or guardian of the victim under the parents may decline to send their children to At the end of amendment No. — insert the domestic or family violence laws of the juris- school for the same reason; following: diction in which such felony or misdemeanor ‘‘(F) the occurrence of violent crime in school zones has resulted in a decline in the SEC. . GUN BAN FOR INDIVIDUALS COMMITTING was committed.’’. DOMESTIC VIOLENCE. (b) UNLAWFUL ACTS.—Section 922 of title quality of education in our country; ‘‘(G) this decline in the quality of edu- (a) DEFINITIONS.—Section 921(a) of title 18, 18, United States Code, is amended— United States Code, is emended by adding at (1) in subsection (d)— cation has an adverse impact on interstate the end the following new paragraph: (A) by striking ‘‘or’’ at the end of para- commerce and the foreign commerce of the ‘‘(33) The term ‘crime involving domestic graph (7); United States; violence’ means a felony or misdemeanor (B) by striking the period at the end of ‘‘(H) States, localities, and school systems crime of violence, regardless of length, term, paragraph (8) and inserting ‘‘; or’’; and find it almost impossible to handle gun-re- or manner of punishment, committed by a (C) by inserting after paragraph (8) the fol- lated crime by themselves—even States, lo- current or former spouse, parent, or guard- lowing new paragraph: calities, and school systems that have made ian of the victim, by a person with whom the ‘‘(9) has been convicted in any court of any strong efforts to prevent, detect, and punish victim shares a child in common, by a person crime involving domestic violence, if the in- gun-related crime find their efforts who is cohabiting with or has cohabited with dividual has been represented by counsel or unavailing due in part to the failure or in- the victim as a spouse, parent, or guardian, knowingly and intelligently waived the right ability of other States or localities to take or by a person similarly situated to a spouse, to counsel.’’; strong measures; and parent, or guardian of the victim under the (2) in subsection (g)— ‘‘(I) the Congress has the power, under the (A) by striking ‘‘or’’ at the end of para- domestic or family violence laws of the juris- interstate commerce clause and other provi- graph (7); diction in which such felony or misdemeanor sions of the Constitution, to enact measures (B) in paragraph (8), by striking the was committed.’’. to ensure the integrity and safety of the Na- comma and inserting ‘‘; or’’; and tion’s schools by enactment of this sub- (b) UNLAWFUL ACTS.—Section 922 of title (C) by inserting after paragraph (8) the fol- 18, United States Code, is amended— section. lowing new paragraph: (1) in subsection (d)— ‘‘(2)(A) It shall be unlawful for any individ- (A) by striking ‘‘or’’ at the end of para- ‘‘(9) has been convicted in any court of any ual knowingly to possess a firearm that has graph (7); crime involving domestic violence, if the in- moved in or that otherwise affects interstate (B) by striking the period at the end of dividual has been represented by counsel or or foreign commerce at a place that the indi- paragraph (8) and inserting ‘‘; or’’; and knowingly and intelligently waived the right vidual knows, or has reasonable cause to be- (C) by inserting after paragraph (8) the fol- to counsel.’’; and lieve, is a school zone. lowing new paragraph: (3) in subsection (s)(3)(B)(i), by inserting ‘‘(B) Subparagraph (A) does not apply to ‘‘(9) has been convicted in any court of any before the semicolon the following: ‘‘and has the possession of a firearm— crime involving domestic violence, if the in- not been convicted in any court of any crime ‘‘(i) on private property not part of school dividual has been represented by counsel or involving domestic violence, if the individual grounds; knowingly and intelligently waived the right has been represented by counsel or know- ‘‘(ii) if the individual possessing the fire- to counsel.’’; ingly and intelligently waived the right to arm is licensed to do so by the State in (2) in subsection (g)— counsel’’. which the school zone is located or a politi- (A) by striking ‘‘or’’ at the end of para- (c) RULES AND REGULATIONS.—Section cal subdivision of the State, and the law of graph (7); 926(a) of title 18, United States Code, is the State or political subdivision requires (B) in paragraph (8), by striking the amended— that, before an individual obtains such a li- comma and inserting ‘‘; or’’; and (1) by striking ‘‘and’’ at the end of para- cense, the law enforcement authorities of the (C) by inserting after paragraph (8) the fol- graph (2); State or political subdivision verify that the lowing new paragraph: (2) by striking the period at the end of individual is qualified under law to receive ‘‘(9) has been convicted in any court of any paragraph (3) and inserting ‘‘; and’’; and the license; crime involving domestic violence, if the in- (3) by inserting after paragraph (3) the fol- ‘‘(iii) that is— dividual has been represented by counsel or lowing new paragraph: ‘‘(I) not loaded; and knowingly and intelligently waived the right ‘‘(4) regulations providing for the effective ‘‘(II) in a locked container, or a locked to counsel,’’; and receipt and secure storage of firearms relin- firearms rack that is on a motor vehicle; ‘‘(iv) by an individual for use in a program (3) in subsection (s)(3)(B)(i), by inserting quished by or seized from persons described approved by a school in the school zone; before the semicolon the following: ‘‘and has in subsection (d)(9) or (g)(9) of section 922.’’. ‘‘(v) by an individual in accordance with a not been convicted in any court of any crime contract entered into between a school in involving domestic violence, if the individual KOHL AMENDMENT NO. 5244 the school zone and the individual or an em- has been represented by counsel or know- (Ordered to lie on the table.) ployer of the individual; ingly and intelligently waived the right to ‘‘(vi) by a law enforcement officer acting in counsel’’. Mr. KOHL submitted an amendment his or her official capacity; or (c) RULES AND REGULATIONS.—Section intended to be proposed by him to the ‘‘(vii) that is unloaded and is possessed by 926(a) of title 18, United States Code, is bill, H.R. 3756, supra; as follows: an individual while traversing school prem- amended— At the appropriate place in the bill, add ises for the purpose of gaining access to pub- (1) by striking ‘‘and’’ at the end of para- the following new section: lic or private lands open to hunting, if the graph (2); SEC. . PROHIBITION. entry on school premises is authorized by (2) by striking the period at the end of Section 922(q) of title 18, United States school authorities. paragraph (3) and inserting ‘‘; and’’; and Code, is amended to read as follows: ‘‘(3)(A) Except as provided in subparagraph (3) by inserting after paragraph (3) the fol- ‘‘(q)(1) The Congress finds and declares (B), it shall be unlawful for any person, lowing new paragraph: that— knowingly or with reckless disregard for the ‘‘(4) regulations providing for the effective ‘‘(A) crime, particularly crime involving safety of another, to discharge or attempt to receipt and secure storage of firearms relin- drugs and guns, is a pervasive, nationwide discharge a firearm that has moved in or quished by or seized from persons described problem; that otherwise affects interstate or foreign in subsection (d)(9) or (g)(9) of section 922.’’. ‘‘(B) crime at the local level is exacerbated commerce at a place that the person knows by the interstate movement of drugs, guns, is a school zone. AMENDMENT NO. 5243 and criminal gangs; ‘‘(B) Subparagraph (A) does not apply to At the appropriate place, insert the follow- ‘‘(C) firearms and ammunition move easily the discharge of a firearm— ing: in interstate commerce and have been found ‘‘(i) on private property not part of school SEC. . GUN BAN FOR INDIVIDUALS COMMITTING in increasing numbers in and around schools, grounds; DOMESTIC VIOLENCE. as documented in numerous hearings in both ‘‘(ii) as part of a program approved by a (a) DEFINITIONS.—Section 921(a) of title 18, the Committee on the Judiciary the House of school in the school zone, by an individual United States Code, is amended by adding at Representatives and the Committee on the who is participating in the program; the end the following new paragraph: Judiciary of the Senate; ‘‘(iii) by an individual in accordance with a ‘‘(33) The term ‘crime involving domestic ‘‘(D) in fact, even before the sale of a fire- contract entered into between a school in a violence’ means a felony or misdemeanor arm, the gun, its component parts, ammuni- school zone and the individual or an em- crime of violence, regardless of length, term, tion, and the raw materials from which they ployer of the individual; or September 11, 1996 CONGRESSIONAL RECORD — SENATE S10335 ‘‘(iv) by a law enforcement officer acting in ‘‘(ii) serious impairment to bodily func- (C) Differences in the efficient operation of his or her official capacity. tions, or the temporary assistance for needy families ‘‘(4) Nothing in this subsection shall be ‘‘(iii) serious dysfunction of any bodily block grant program among the States. construed as preempting or preventing a organ or part.’’. (D) Per capita income in each State. State or local government from enacting a ‘‘(F) In subparagraph (D), the term ‘sta- (E) The cost of living in each State. statute establishing gun free school zones as bilization’ means, with respect to an emer- (3) REPORTS.— provided in this subsection.’’. gency medical condition, that no material (A) FIRST REPORT.— deterioration of the condition is likely, with- (i) IN GENERAL.—The Commission shall GRAHAM AMENDMENTS NOS. 5245– in reasonable medical probability, to result submit a first report to the Congress by not 5246 or occur before an individual can be trans- later than June 1, 1997. ferred in compliance with the requirements (ii) REQUIREMENT.—The report submitted (Ordered to lie on the table.) of section 1867 of the Social Security Act.’’. to the Congress under clause (i) shall include Mr. GRAHAM submitted two amend- (c) EFFECTIVE DATE.—The amendments the Commission’s recommendation with re- ments intended to be proposed by him made by subsections (a) and (b) shall be ef- spect to the issue described in paragraph to the bill, H.R. 5245, supra; as follows: fective for contract years beginning on or (1)(B) in the form of an implementation bill after the date of this Act. AMENDMENT NO. 5245 containing such statutory provisions as the Commission may determine are necessary or At the appropriate place, insert the follow- AMENDMENT NO. 5246 ing: appropriate to implement such recommenda- At the appropriate place, insert the follow- tion. Only an implementation bill submitted SEC. . REQUIREMENTS FOR MEDICARE MAN- ing: AGED CARE. to the Congress under this paragraph shall TITLE ll—WELFARE FORMULA (a) ACCESS TO EMERGENCY SERVICES.—Sub- be considered under the procedures estab- paragraph (B) of section 1876(c)(4) of the So- FAIRNESS COMMISSION lished under section ll03. cial Security Act (42 U.S.C. 1395mm(c)(4)) is SECTION ll01. SHORT TITLE. (B) SUBSEQUENT REPORTS.—The Commis- amended to read as follows: This title may be cited as the ‘‘Welfare sion shall issue subsequent reports to the ‘‘(B) meet the requirements of section 3 of Formula Fairness Commission Act of 1996’’. Congress by not later than December 31, 1997, the Access to Emergency Medical Care Act SEC. ll02. WELFARE FORMULA FAIRNESS COM- and December 31, 1998. of 1995 with respect to members enrolled MISSION. (i) POWERS OF THE COMMISSION.— with an organization under this section.’’. (a) ESTABLISHMENT.—There is established a (1) HEARINGS.—The Commission may hold (b) TIMELY AUTHORIZATION FOR PROMPTLY commission to be known as the Welfare For- such hearings, sit and act at such times and NEEDED CARE IDENTIFIED AS A RESULT OR RE- mula Fairness Commission (in this title re- places, take such testimony, and receive QUIRED SCREENING EVALUATION.—Section ferred to as the ‘‘Commission’’). such evidence as the Commission considers 1876(c) of such Act (42 U.S.C. 1395mm(c)) is (b) MEMBERSHIP.— advisable to carry out the purposes of this amended by adding at the end the following: (1) COMPOSITION.—The Commission shall be title. ‘‘(9)(A) The organization must provide ac- composed of 13 members, of whom— (2) INFORMATION FROM FEDERAL AGENCIES.— cess 24 hours a day, 7 days a week to individ- (A) 3 shall be appointed by the President, The Commission may secure directly from uals who are authorized to make any prior of whom not more than 2 shall be of the any Federal department or agency such in- authorizations required by the organization same political party; formation as the Commission considers nec- for coverage of items and services (other (B) 3 shall be appointed by the Majority essary to carry out the provisions of this than emergency services) that a treating Leader of the Senate; title. Upon request of the Chair of the Com- physician or other emergency department (C) 2 shall be appointed by the Minority mission, the head of such department or personnel identify, pursuant to a screening Leader of the Senate; agency shall furnish such information to the evaluation required under section 1867(a), as (D) 3 shall be appointed by the Speaker of Commission. being needed promptly by an individual en- the House of Representatives; and (3) POSTAL SERVICES.—The Commission rolled with the organization under this part. (E) 2 shall be appointed by the Minority may use the United States mails in the same ‘‘(B) The organization is deemed to have Leader of the House of Representatives. manner and under the same conditions as approved a request for such promptly needed (2) DATE.—The appointments of the mem- other departments and agencies of the Fed- items and services if the physician or other bers of the Commission shall be made not eral Government. emergency department personnel involved— later than 30 days after the date of the enact- (4) GIFTS.—The Commission may accept, ‘‘(i) has made a reasonable effort to con- ment of this Act. use, and dispose of gifts or donations of serv- tact an individual described in subparagraph (c) PERIOD OF APPOINTMENT; VACANCIES.— ices or property. (A) for authorization to provide an appro- Members shall be appointed for the life of (j) PERSONNEL MATTERS.— priate referral for such items and services or the Commission. Any vacancy in the Com- (1) COMPENSATION OF MEMBERS.—Each mission shall not affect its powers, but shall to provide the items and services to the indi- member of the Commission who is not an of- be filled in the same manner as the original vidual and access to the person has not been ficer or employee of the Federal Government appointment. provided (as required in subparagraph (A)), shall serve without compensation. All mem- (d) INITIAL MEETING.—Not later than 30 or bers of the Commission who are officers or ‘‘(ii) has requested such authorization from days after the date on which all members of employees of the United States shall serve the person and the person has not denied the the Commission have been appointed, the without compensation in addition to that re- authorization within 30 minutes after the Commission shall hold its first meeting. ceived for their services as officers or em- time the request is made. (e) MEETINGS.—The Commission shall meet ‘‘(C) Approval of a request for a prior au- at the call of the Chair. ployees of the United States. thorization determination (including a (f) QUORUM.—A majority of the members of (2) TRAVEL EXPENSES.—The members of the deemed approval under subparagraph (B)) the Commission shall constitute a quorum, Commission shall be allowed travel expenses, shall be treated as approval of a request for but a lesser number of members may hold including per diem in lieu of subsistence, at any items and services that are required to hearings. rates authorized for employees of agencies treat the medical condition identified pursu- (g) CHAIR AND VICE CHAIR.—The Commis- under subchapter I of chapter 57 of title 5, ant to the required screening evaluation. sion shall select a Chair and Vice Chair from United States Code, while away from their ‘‘(D) In this paragraph, the term ‘emer- among its members. homes or regular places of business in the gency services’ means— (h) DUTIES OF THE COMMISSION.— performance of services for the Commission. ‘‘(i) health care items and services fur- (1) STUDY.—The Commission shall study— (3) STAFF.— nished in the emergency department of a (A) the temporary assistance for needy (A) IN GENERAL.—The Chair of the Commis- hospital (including a trauma center), and families block grant program established sion may, without regard to the civil service ‘‘(ii) ancillary services routinely available under part A of title IV of the Social Secu- laws and regulations, appoint and terminate to such department, to the extent they are rity Act, as amended by the Personal Re- an executive director and such other addi- required to evaluate and treat an emergency sponsibility and Work Opportunity Rec- tional personnel as may be necessary to en- medical condition (as defined in subpara- onciliation Act of 1996; and able the Commission to perform its duties. graph (E)) until the condition is stabilized. (B) the funding formulas applied, the bonus The employment of an executive director ‘‘(E) In subparagraph (D), the term ‘emer- payments provided, the penalties imposed, shall be subject to confirmation by the Com- gency medical condition’ means a medical and the work requirements established under mission. condition, the onset of which is sudden, that such program. (B) COMPENSATION.—The Chair of the Com- manifests itself by symptoms of sufficient (2) CONSULTATION.—In addressing the issue mission may fix the compensation of the ex- severity, including severe pain, that a pru- described in paragraph (1)(B), the Commis- ecutive director and other personnel without dent layperson, who possesses an average sion shall consult with the Comptroller Gen- regard to the provisions of chapter 51 and knowledge of health and medicine, could rea- eral of the United States and shall consider subchapter III of chapter 53 of title 5, United sonably expect the absence of immediate the following: States Code, relating to classification of po- medical attention to result in— (A) The rate of poverty in each State. sitions and General Schedule pay rates, ex- ‘‘(i) placing the person’s health in serious (B) The total taxable resources in each cept that the rate of pay for the executive di- jeopardy, State. rector and other personnel may not exceed S10336 CONGRESSIONAL RECORD — SENATE September 11, 1996 the rate payable for level V of the Executive ther consideration of the implementing bill placed on the calendar, it shall be privileged Schedule under section 5316 of such title. and it shall be placed on the appropriate cal- for any Member to move without debate that (4) DETAIL OF GOVERNMENT EMPLOYEES.— endar. the House resolve itself into the Committee Any Federal Government employee may be (4) FLOOR CONSIDERATION IN THE SENATE.— of the Whole House on the State of the detailed to the Commission without reim- (A) IN GENERAL.—Within 5 days after the Union, for the consideration of the bill, and bursement, and such detail shall be without implementing bill is placed on the calendar, the first reading of the bill shall be dispensed interruption or loss of civil service status or the Majority Leader, at a time to be deter- with. privilege. mined by the Majority Leader in consulta- (B) GENERAL DEBATE.—After general de- (5) PROCUREMENT OF TEMPORARY AND INTER- tion with the Minority Leader, shall proceed bate, which shall be confined to the imple- MITTENT SERVICES.—The Chair of the Com- to the consideration of the bill. If on the menting bill and which shall not exceed 4 mission may procure temporary and inter- sixth day after the bill is placed on the cal- hours, to be equally divided and controlled mittent services under section 3109(b) of title endar, the Senate has not proceeded to con- by the Chairman and Ranking Minority 5, United States Code, at rates for individ- sideration of the bill, then the presiding offi- Member of the Committee or Committees to uals which do not exceed the daily equiva- cer shall automatically place the bill before which the bill had been referred, the bill lent of the annual rate of basic pay pre- the Senate for consideration. A motion in shall be considered for amendment by title scribed for level V of the Executive Schedule the Senate to proceed to the consideration of under the 5-minute rule and each title shall under section 5316 of such title. an implementing bill shall be privileged and be considered as having been read. The total (k) TERMINATION OF THE COMMISSION.—The not debatable. An amendment to the motion time for considering all amendments shall be Commission shall terminate not later than shall not be in order, nor shall it be in order limited to 26 hours of which the total time December 31, 1998. to move to reconsider the vote by which the for debating each amendment under the 5- (l) AUTHORIZATION OF APPROPRIATIONS.— motion is agreed to or disagreed to. minute rule shall not exceed one hour. There is authorized to be appropriated to the (B) TIME LIMITATION ON CONSIDERATION OF (C) RISE AND REPORT.—At the conclusion of Commission such sums as are necessary to BILL.— the consideration of the implementing bill carry out the purposes of this title. (i) IN GENERAL.—Debate in the Senate on for amendment, the Committee of the Whole SEC. ll03. CONGRESSIONAL CONSIDERATION an implementing bill, and all amendments on the State of the Union shall rise and re- OF COMMISSION RECOMMENDA- and debatable motions and appeals in con- port the bill to the House with such amend- TIONS. nection therewith, shall be limited to not ments as may have been adopted, and the (a) IMPLEMENTING BILL.—An implementing bill described in section ll02(h)(3)(A)(ii) more than 30 hours. The time shall be equal- previous question shall be considered as or- shall be considered by the Congress under ly divided between, and controlled by, the dered on the bill and the amendments there- the procedures for consideration described in Majority Leader and the Minority Leader or to, and the House shall proceed to vote on subsection (b). their designees. final passage without intervening motion ex- (b) CONGRESSIONAL CONSIDERATION.— (ii) DEBATE OF AMENDMENTS, MOTIONS, cept one motion to recommit. (1) RULES OF HOUSE OF REPRESENTATIVES POINTS OF ORDER, AND APPEALS.—In the Sen- (6) COMPUTATION OF DAYS.—For purposes of AND SENATE.—This subsection is enacted by ate, no amendment which is not relevant to this subsection, in computing a number of the Congress— the bill shall be in order. Debate in the Sen- days in either House, there shall be ex- (A) as an exercise of the rulemaking power ate on any amendment, debatable motion or cluded— of the House of Representatives and the Sen- appeal, or point of order in connection with (A) the days on which either House is not ate, respectively, and as such is deemed a an implementing bill shall be limited to— in session because of an adjournment of more part of the rules of each House, respectively, (I) not more than 2 hours for each first de- than 3 days to a day certain, or an adjourn- but applicable only with respect to the pro- gree relevant amendment, ment of the Congress sine die; and cedure to be followed in that House in the (II) one hour for each second degree rel- (B) any Saturday and Sunday not excluded case of an implementing bill described in evant amendment, and under subparagraph (A) when either House is subsection (a), and supersedes other rules (III) 30 minutes for each debatable motion not in session. only to the extent that such rules are incon- or appeal, or point of order submitted to the sistent therewith; and Senate, INHOFE AMENDMENT NO. 5247 (B) with full recognition of the constitu- to be equally divided between, and controlled (Ordered to lie on the table.) tional right of either House to change the by, the mover and the manager of the imple- rules (so far as relating to the procedure of menting bill, except that in the event the Mr. INHOFE submitted an amend- that House) at any time, in the same manner manager of the implementing bill is in favor ment intended to be proposed by him and to the same extent as in the case of any of any such amendment, motion, appeal, or to the bill, H.R. 3756, supra; as follows: other rule of that House. point of order, the time in opposition there- On page 60, strike lines 19 through 21. (2) INTRODUCTION AND REFERRAL.—On the to, shall be controlled by the Minority Lead- day on which the implementing bill de- er or designee of the Minority Leader. The HATFIELD AMENDMENT NO. 5248 scribed in subsection (a) is transmitted to Majority Leader and Minority Leader, or ei- the House of Representatives and the Senate, ther of them, may, from time under their (Ordered to lie on the table.) such bill shall be introduced (by request) in control on the passage of an implementing Mr. HATFIELD submitted an amend- the House of Representatives by the Major- bill, allot additional time to any Senator ment intended to be proposed by him ity Leader of the House, for himself or her- during the consideration of any amendment, to the bill, H.R. 3756, supra; as follows: self and the Minority Leader of the House, or debatable motion or appeal, or point of by Members of the House designated by the order. TITLE —LOCAL EMPOWERMENT AND Majority Leader and Minority Leader of the (C) OTHER MOTIONS.—A motion to recom- FLEXIBILITY PILOT ACT OF 1996 House and shall be introduced (by request) in mit an implementing bill is not in order. SECTION 01. SHORT TITLE. the Senate by the Majority Leader of the (D) FINAL PASSAGE.—Upon the expiration This Act may be cited as the ‘‘Local Senate, for himself or herself and the Minor- of the 30 hours available for consideration of Empowerment and Flexibility Pilot Act of ity Leader of the Senate, or by Members of the implementing bill, it shall not be in 1996.’’ the Senate designated by the Majority Lead- order to offer or vote on any amendment to, SEC. 02. FINDINGS. er and Minority Leader of the Senate. If ei- or motion with respect to, such bill. Imme- The Congress finds that— ther House is not in session on the day on diately following the conclusion of debate in (1) historically, Federal programs have ad- which the implementing bill is transmitted, the Senate on an implementing bill that was dressed the Nation’s problems by providing the bill shall be introduced in that House, as introduced in the Senate, such bill shall be categorical financial assistance with de- provided in the preceding sentence, on the deemed to have been read a third time and tailed requirements relating to the use of first day thereafter on which that House is in the vote on final passage of such bill shall funds; session. If the implementing bill is not intro- occur without any intervening action or de- (2) while the assistance described in para- duced within 5 days of its transmission, any bate. graph (1) has been directed at critical prob- Member of the House and of the Senate may (E) DEBATE ON DIFFERENCES BETWEEN THE lems, some program requirements may inad- introduce such bill. The implementing bill HOUSES.—Debate in the Senate on motions vertently impede the effective delivery of introduced in the House of Representatives and amendments appropriate to resolve the services; and the Senate shall be referred to the ap- differences between the Houses, at any par- (3) the Nation’s State, local, and tribal propriate committees of each House. ticular stage of the proceedings, shall be lim- governments and private, nonprofit organi- (3) PERIOD FOR COMMITTEE CONSIDERATION.— ited to not more than 5 hours. zations are dealing with increasingly com- If the committee or committees of either (F) DEBATE ON CONFERENCE REPORT.—De- plex problems which require the delivery of House to which an implementing bill has bate in the Senate on the conference report many kinds of services; been referred have not reported the bill at shall be limited to not more than 10 hours. (4) our nation’s communities are diverse the close of July 1, 1997 (or if such House is (5) FLOOR CONSIDERATION IN THE HOUSE OF and many have innovative planning and not in session, the next day such House is in REPRESENTATIVES.— community involvement strategies to com- session), such committee or committees (A) PROCEED TO CONSIDERATION.—On the prehensively meet their particular service shall be automatically discharged from fur- sixth day after the implementing bill is needs for providing service, but Federal, September 11, 1996 CONGRESSIONAL RECORD — SENATE S10337 State, and local grant and other require- (A) except as provided in subparagraph (B), SEC. 05. ESTABLISHMENT OF COMMUNITY ments often hamper effective implementa- means a domestic assistance program (as de- EMPOWERMENT BOARD. tion of such strategies. fined under section 6101(4) of title 31, United (a) IN GENERAL.—There is established a (5) it is more important than ever to pro- States Code) under which financial assist- Community Empowerment Board, which vide programs that— ance is available, directly or indirectly, to a shall consist of— (A) promote more effective and efficient State, local, or tribal government or a quali- (1) the Secretary of Housing and Urban De- delivery of services at all levels of govern- fied organization to carry out activities con- velopment; ment to meet the full range of needs of indi- sistent with national policy goals; and (2) the Secretary of Health and Human viduals, families, and society; (B) does not include— Services; (B) respond flexibly to the diverse needs of (i) a Federal program under which direct (3) the Secretary of Agriculture; the Nation’s communities; financial assistance is provided by the Fed- (4) the Secretary of Transportation; (C) reduce the barriers between programs eral Government directly to an individual (5) the Secretary of Education; that impede the State, local, and tribal gov- beneficiary of that financial assistance, or to (6) the Secretary of Commerce; ernments’ ability to effectively deliver serv- a State to provide direct financial assist- (7) the Secretary of Labor; ices; and ance, or to a State to provide direct financial (8) the Secretary of the Treasury; (D) empower State, local, and tribal gov- or food voucher assistance directly to an in- (9) the Attorney General; ernments and private, nonprofit organiza- (10) the Secretary of the Interior; dividual beneficiary; tions to be innovative in creating programs (11) the Secretary of Energy; (ii) a program carried out with direct that meet the unique needs of their commu- (12) the Secretary of Veterans Affairs; spending (as defined in section 250(c)(8) of nities while continuing to address national (13) the Secretary of Defense; the Balanced Budget and Emergency Deficit policy goals; and (14) the Director of the Federal Emergency Control Act of 1985 (2 U.S.C. 900(c)(8)); or Management Agency; SEC. 03. PURPOSES. (iii) a program of assistance referred to in The purposes of this Act are to— (15) the Administrator of the Environment section 6101(4)(A)(ix) of title 31, United (1) improve the delivery of services to the Protection Agency; States Code or Section 3(10) of the Congres- public; (16) the Director of the National Drug Con- (2) promote State, local and tribal govern- sional Budget Act of 1974. trol Policy; ments and private, non-profit organizations (8) EMPOWERMENT ZONE-ELIGIBLE AREA.— (17) the Administrator of the Small Busi- and consortiums to identify goals to improve The term ‘‘empowerment zone-eligible area’’ ness Administration; their communities and the lives of their citi- means any area nominated for designation (18) the Director of the Office of Manage- zens; under subchapter U of chapter I of the Inter- ment and Budget; (3) enable eligible applicants to adapt pro- nal Revenue Code of 1986 that was ruled as (19) the Administator of General Services; grams of Federal financial assistance to the meeting the technical eligibility standards and particular needs of their communities by in- established for that Federal policy. (20) other officials of the Executive Branch tegrating programs and program funds (9) FLEXIBILITY PLAN.—The term ‘‘flexibil- as directed by the President. across existing Federal financial assistance ity plan’’ means a comprehensive plan or (b) CHAIR.—The President shall designate programs that have similar purposes; part of such plan for the integration and ad- the Chair of the Board from among its mem- (4) more effectively meet the goals and ministration by an eligible applicant of fi- bers. purposes of Federal, State and local finan- nancial assistance provided by the Federal (c) FUNCTIONS.— cial assistance programs; Government under 2 or more eligible Federal (1) IN GENERAL.—The Board shall— (5) empower eligible applicants to work to- financial assistance programs that includes (A) no later than 180 days after implemen- gether to build stronger cooperative, inter- funds from Federal, State, local, or tribal tation of this Act, select 6 states to partici- governmental and private partnerships to government or private sources to address the pate in this Act; address critical service problems; service needs of a community. (B) receive, review, and approve or dis- (6) place less emphasis in Federal financial (10) LOCAL GOVERNMENT.—The term ‘‘local approve flexibility plans in accordance with assistance programs on complying with pro- government’’ means— section 7; cedures and more emphasis on achieving (A) a political subdivision of a State that (C) consider all requests for technical as- Federal, State, local and tribal policy goals; is a unit of general local government (as de- sistance from eligible applicants and, when (7) facilitate State, local, and tribal gov- fined under section 6501 of title 31, United appropriate, provide or direct that an af- ernment efforts to develop regional or met- States Code); fected Federal agency provide the head of an ropolitan solutions to shared problems; (B) any combination of political subdivi- agency that administers an eligible Federal (8) improve intergovernmental efficiency. sions described in subparagraph (A) that sub- financial assistance program under which SEC. 04. DEFINITIONS. mits an application to the Board; or substantial Federal financial assistance For purposes of this Act: (C) a local educational agency as defined would be provided under the plan to provide (1) AFFECTED FEDERAL AGENCY.—The term under section 14101(18) of the Elementary and technical assistance to the eligible appli- ‘‘affected Federal agency’’ means the Fed- Secondary Education Act of 1965 (20 U.S.C. cant, and to the extent permitted by law, eral agency with principal authority for the 8801(18)). special assistance to interested small gov- administration of an eligible Federal finan- (11) QUALIFIED CONSORTIUM.—The term ernments to support the development and cial assistance program included in a plan. ‘‘qualified consortium’’ means a group that implementation of a flexibility plan, which (2) AFFECTED STATE AGENCY.—The term is composed of 2 or more qualified organiza- may include expedited processing; ‘‘affected State agency’’ means— tions, State, local, or tribal agencies that re- (D) in consultation with the Director, mon- (A) any State agency with authority for ceive federally appropriated funds. the administration of any State program or itor the progress of development and imple- (12) QUALIFIED ORGANIZATION.—The term eligible Federal financial assistance pro- mentation of flexibility plans; ‘‘qualified organization’’ means a private, (E) in consultation with the Director, co- gram; and nonprofit organization described in section (B) with respect to education programs, ordinate and assist Federal agencies in iden- 501(c)(3) of the Internal Revenue Code of 1986 the term shall include the State Education tifying regulations of eligible Federal finan- (26 U.S.C. 501(c)(3)) that is exempt from tax- Agency as defined by the Elementary and cial assistance programs for revision, repeal ation under section 501(a) of the Internal Secondary Education Act and the Higher and coordination; Revenue Code of 1986 (26 U.S.C. 501(a)). Education Act. (F) evaluate performance standards and (13) SMALL GOVERNMENT.—The term ‘‘small (3) APPROVED FLEXIBILITY PLAN.—The term evaluation criteria for eligible Federal finan- ‘‘approved flexibility plan’’ means a government’’ means any small governmental cial assistance programs, and make specific flexiblility plan or the part of a flexibility jurisdiction defined in section 601(5) of title recommendations to agencies regarding how plan, that is approved by the Community 5, United States Code, and a tribal govern- to revise such standards and criteria in order Empowerment Board under section 8. ment. to establish specific performance and out- (4) BOARD.—The term ‘‘Board’’ means the (14) STATE.—The term ‘‘State’’ means each come measures upon which the success of Community Empowerment Board established of the 50 States, the District of Columbia, such programs and the success of the plan under section 5. Puerto Rico, American Samoa, Guam, and may be compared and evaluated; and (5) DIRECTOR.—The term ‘‘Director’’ means the Virgin Islands. (G) designate a Federal agency to be pri- the Director of the Office of Management (15) STATE LEGISLATIVE OFFICIAL.—The marily responsible for the oversight, mon- and Budget. term ‘‘State legislative official’’ means— itoring, and evaluation of the implementa- (6) ELIGIBLE APPLICANT.—The term ‘‘eligi- (A) the presiding officer of a chamber of a tion of a plan. ble applicant’’ means a State, local, or tribal State legislature; and (2) QUALIFICATIONS FOR STATES.—Of the 6 government, qualified organization, or quali- (B) the minority leader of a chamber of a States selected for participation under para- fied consortium that is eligible to receive fi- State legislature. graph 1 (A)—3 States shall each have a popu- nancial assistance under 1 or more eligible (14) TRIBAL GOVERNMENT.—The term ‘‘trib- lation of 3,500,000 or more as determined Federal financial assistance programs. al government’’ means the governing entity under the most recent decennial census; and (7) ELIGIBLE FEDERAL FINANCIAL ASSISTANCE of an Indian tribe, as that term is defined in (B) 3 States shall each have a population of PROGRAM.—The term ‘‘eligible Federal finan- the Indian Self Determination and Education 3,500,000 or less as determined under the cial assistance program’’— Assistance Act (25 U.S.C. 450b). most recent decennial census. S10338 CONGRESSIONAL RECORD — SENATE September 11, 1996

(d) COORDINATION AND ASSISTANCE.—The services and benefits under the eligible Fed- (A) meet maintenance of effort require- Director, in consultation with the Board, eral financial assistance programs included ments of such an activity, or shall coordinate and assist Federal agencies in the plan and the particular groups of indi- (B) meet State, local, or tribal matching in creating— viduals, by service needs, economic cir- shares; and (1) a uniform application to be used to cumstances, or other defining factors who (13) any other relevant information the apply for assistance from eligible Federal fi- would receive services and benefits under the Board may require to approve the plan; nancial assistance programs; plan; (d) PROCEDURE FOR APPLYING.— (2) a release form to be used by grantees to (3) the specific goals and measurable per- (1) SUBMISSION TO AFFECTED STATE AND facilitate, where appropriate and otherwise formance criteria that demonstrate how the LOCAL GOVERNMENTS.—An eligible applicant lawful, the sharing of information across eli- plan is expected to improve the delivery of shall submit an application for approval of a gible Federal financial assistance programs; services to the public including— proposed flexibility plan to each State gov- and (A) a description of how performance shall ernment and each local government that the (3) a system wherein an organization or be measured under the plan when compared applicant deems to be directly affected by consortium of organizations may use one to the current performance of the eligible the plan, at least 60 days before submitting proposal to apply for funding from multiple Federal financial assistance programs in- the application to the Board. eligible Federal financial assistance pro- cluded in the plan; and (2) REVIEW BY AFFECTED GOVERNMENT.—The grams. (B) a system for the comprehensive evalua- Governor, affected State agency head, State (e) DETAILS AND ASSIGNMENTS TO BOARD.— tion of the impact of the plan on individuals legislative official, and the chief executive At the request of the Board and with the ap- who receive services and benefits in the com- officer of a local government that receives proval of the appropriate Federal agency, munity affected by the plan, that shall in- an application submitted under paragraph (1) staff of the agency may be detailed or as- clude— may each, by no later than 60 days after the signed to the Board on a nonreimbursable (i) a list of goals to improve the commu- date of that receipt— basis. nity and the lives of its citizens in the geo- (A) prepare comments on the proposed (f) INTERAGENCY FINANCING.—Notwith- graphic area covered by the plan; flexibility plan included in the application; standing any other law, interagency financ- (ii) a list of goals identified by the State in (B) describe and make commitments to ing is authorized to carry out the purposes of which the plan is to be implemented, if such waive any State or local laws or other re- this Act. goals have been established by the State; and quirements which are necessary for success- (g) JUDICIAL REVIEW.—The actions of the (iii) a description of how the plan will— ful implementation of the proposed plan; and Board shall not be subject to judicial review. (I) attain the goals listed in clauses (i) and (C) submit the comments and commit- SEC. 06. APPLICATION FOR APPROVAL OF (ii); ments to the eligible applicant. FLEXIBILITY PLAN. (II) measure performance; and (3) SUBMITTAL TO BOARD.—Applications for (A) IN GENERAL.—An eligible applicant (III) collect and maintain data; approval of a flexibility plan shall only be may submit to the Board in accordance with (4) the eligible Federal financial assistance submitted to the Board between— this section an application for approval of a programs included in the plan and the spe- (A) October 1, 1997 and March 31, 1998; or flexibility plan. cific services and benefits to be provided (B) October 1, 1998 and March 31, 1999. under the plan under such programs, includ- (b) CONTENTS OF APPLICATION.—An applica- (4) ACTION BY AFFECTED GOVERNMENT.—If tion submitted under this section shall in- ing— the Governor, affected State agency head, clude— (A) criteria for determining eligibility for State legislative official or the chief execu- (1) a proposed flexibility plan that com- services and benefits under the plan; tive officer of a local government— (B) the services and benefits available plies with subsection (c); (A) fails to act on or otherwise endorse a under the plan; (2) written certification by the chief execu- plan application within 60 days after receiv- (C) the amounts and form (such as cash, in- tive of the applicant, and such additional as- ing an application under paragraph (1); kind contributions, or financial instruments) surances as may be required by the Board, (B) does not make and submit to the eligi- of non-service benefits; and that— ble applicant the commitments described in (D) any other descriptive information the (A) the applicant has the ability, author- paragraph (2) (A) and (B); or Board considers necessary to approve the ity, and resources to implement the proposed (C) disagrees with all or part of the pro- plan; plan, throughout the geographic area in posed flexibility plan; which the proposed plan is intended to apply; (5) a description of the statutory goals and and purposes of each Federal financial assistance the eligible applicant may submit the appli- (B) amounts are available from non-Fed- program included in the plan and how the cation to the Board if the application is eral sources to pay the non-Federal share of goals and purposes of such programs shall amended as necessary for the successful im- all eligible Federal financial assistance pro- more effectively be met at the State, local plementation of the proposed plan without grams included in the proposed plan; and tribal level; the commitment made under paragraph (C) the flexibility plan prohibits the inte- (6) a general description of how the plan (2)(B), including by adding an updated de- gration or combination of program funds appropriately addresses any effect that ad- scription of the ability of the proposed flexi- across existing Federal financial assistance ministration of each eligible Federal finan- bility plan to meet plan goals and satisfy programs which do not have similar pur- cial assistance program included in the plan performance criteria in the absence of statu- poses. would have on the administration of pro- tory and regulatory waivers and financial (3) all comments on the proposed plan sub- grams not included in the plan; and technical support from the State or local mitted under subsection (d) by a Governor, (7) a description of how the flexibility plan government. affected State agency, State legislative offi- will adequately achieve the purposes of this (e) TRIBAL SOVEREIGNTY.—Nothing under cial, or a chief executive of a local or tribal Act; this Act shall be construed to affect, or oth- government that would be directly affected (8) except for the requirements described erwise alter, the sovereign relationship be- by implementation of the proposed plan, and under section 7(f)(3), any Federal statutory tween tribal governments and the Federal the applicant’s responses to those comments; or regulatory requirement of an eligible Fed- Government. (4) written documentation that the eligible eral financial assistance program included in (f) ELIGIBILITY FOR OTHER ASSISTANCE.— applicant informed the affected community the plan, the waiver of which is necessary to Disapproval by the Board of a flexibility plan of the contents of the plan and gave the pub- implement the plan, and the detailed jus- submitted by an eligible applicant under this lic opportunity to comment upon the plan, tification for the waiver request; Act shall not affect the eligibility of the ap- including at least one public hearing involv- (9) any State, local, or tribal statutory, plicant for assistance under any Federal pro- ing agencies, qualified organizations, eligible regulatory, or other requirement, the waiver gram. intended beneficiaries of the plan, and others of which is necessary to implement the plan, (g) STATE, LOCAL OR TRIBAL AUTHORITY.— directly affected by the plan; and an indication of commitment of the ap- Nothing in this Act shall be construed to (5) a summary of the public comment re- propriate State, local, or tribal governments grant the Board, Federal agency, or any eli- ceived on the plan and the applicant’s re- to grant such waivers; gible applicant authority to waive or other- sponses to the significant comments; (9) a description of the Federal fiscal con- wise preempt— (6) other relevant information the Board trol and related accountability procedures (1) any State, local, or tribal law or regula- may require to review or approve the pro- applicable under the plan; tion including the legal authority under posed plan. (10) a description of the sources and State law of any affected State agency, (c) CONTENTS OF PLAN.—A flexibility plan amounts of all non-Federal funds that are re- State entity, or public official over programs submitted by an eligible applicant under this quired to carry out eligible Federal financial that are under the jurisdiction of the agency, section shall include— assistance programs included in the plan; entity or official; or (1) the geographic area and timeframe to (11) verification that Federal funds made (2) the existing authority of a State, local, which the plan applies and the rationale for available under the plan will not supplant or tribal government or qualified organiza- selecting the area and timeframe; non-Federal funds for existing services and tion or consortium with respect to an eligi- (2) the particular groups of individuals, by activities that promote the goals of the plan; ble Federal financial assistance program in- service needs, economic circumstances, or (12) verification that none of the Federal cluded in the plan unless such entity has other defining factors, who currently receive funds under the plan would be used to— consented to the terms of the plan. September 11, 1996 CONGRESSIONAL RECORD — SENATE S10339 SEC. 07. REVIEW AND APPROVAL OF FLEXIBIL- (C) technical or special assistance being (F) grants any person a cause of action. ITY PLANS AND WAIVER REQUESTS. provided to the eligible applicant; and SEC. 08. IMPLEMENTATION, AMENDING AND (a) REVIEW OF APPLICATIONS.—Upon receipt (D) the effective date and timeframe of the TERMINATION OF APPROVED FLEXI- of an application for approval of a proposed plan and each Federal waiver approved in the BILITY PLANS. flexibility plan, the Board shall notify the plan; (a) IMPLEMENTATION.— eligible applicant as to whether or not the (E)(i) the total amount of Federal funds (1) The Board, in consultation with the Di- plan is complete. If the Board determines a that will be provided as services and benefits rector, shall issue guidance to implement plan is complete, the Board shall— under or used to administer eligible Federal this Act within 180 days after the date of en- (1) establish procedures for consultation financial assistance programs included in actment of this Act. with the applicant during the review process; the plan; or (2) Notwithstanding any other law, any (2) publish notice of the application for ap- (ii) a mechanism for determining that service or benefit that is provided under an proval in the Federal Register and make amount, including specification of the total eligible Federal financial assistance program available the contents to any interested amount of Federal funds that will be pro- included in an approved flexibility plan shall party upon written request; vided or used under each eligible Federal fi- be paid and administered in the manner spec- (3) if appropriate, coordinate public hear- nancial assistance program included in the ified in the approved flexibility plan. ings on the plan by either the Board or the plan. (3) The authority provided under this Act appropriate Federal agency; (e) LIMITATION ON CONFIDENTIALITY RE- to waive provisions of grant agreements may (4) approve or disapprove plans submitted QUIREMENTS.—The Board may not, as a con- be exercised only as long as the funds pro- under— dition of approval of flexibility plan or with vided for the grant program in question are (i) section 6(d)(3)(A) no later than July 31, respect to the implementation of an ap- available for obligation by the Federal Gov- 1998; or proved flexibility plan, establish any con- ernment. fidentiality requirement that would— (ii) section 6(d)(3)(B) no later than July 31, (b) AMENDING OF FLEXIBILITY PLAN.— (1) impede the exchange of information 1999; (1) In the event that an eligible applicant— (5) in the case of any disapproval of a plan, needed for the design or provision of services (A) desires an amendment to an approved include written justification of the reasons and benefits under the plans; or flexibility plan in order to better meet the (2) conflict with law. for disapproval in the notice of disapproval (f) LIMITATION ON THE USE OF FUNDS.—The purposes of this Act; or sent to the applicant; Board may not approve any plan that in- (B) requires an amendment to ensure con- (6) publicly announce and forward to Con- cludes funds under an eligible Federal finan- tinued implementation of an approved flexi- gress on July 31, 1998 and July 31, 1999, the cial assistance program to— bility plan, the applicant shall— list of approved flexibility plans, including (1) support tuition vouchers for children (i) submit the proposed amendment to the an identification of approved plans that re- attending private elementary or secondary Board for review and approval; and quest statutory or regulatory waivers and schools; or (ii) upon approval, enter into a revised the identification of such requested waivers. (2) otherwise pay their cost of attending memorandum of understanding with the af- (b) APPROVAL— such schools. fected Federal agency. (1) IN GENERAL.—The Board may approve a (g) WAIVERS OF FEDERAL REQUIREMENTS.— (2) Approval of the Board and, when appro- flexibility plan for which an application is (1) IN GENERAL.—Notwithstanding any priate, affected Federal agency, shall be submitted by an eligible applicant under this other law and subject to paragraphs (2) and based upon the same conditions required for Act, if the Board determines that— (3), affected Federal agencies may waive, for approval of a flexibility plan. (A) the contents of the application for ap- a period of time not to exceed 5 years from (c) TERMINATION OF PLAN.— proval of the plan comply with the require- the date the Board receives a signed memo- (1) TERMINATION OF PLAN BY BOARD.— ments of this Act; and randum of understanding, any statutory or (A) IN GENERAL.—The Board shall termi- (B) the contents of the flexibility plan in- regulatory requirement of an eligible Fed- nate an approved flexibility plan, if, after dicate that the plan will effectively achieve eral assistance program included in an ap- consultation with the affected Federal agen- the purposes of this Act described in section proved flexibility plan of an eligible appli- cies, the Board determines that— 3 by adhering to the conditions described in cant if that waiver is— (i) the applicant of the approved flexibility sections 6 and 7; (A) necessary for implementation of the plan is unable to meet the commitments (2) RESTRICTION.—(A) The Board may ap- flexibility plan; under this Act; or prove no more than 30 plans; and (B) not disapproved by the Board; and (ii) audit or oversight activities determine (B) only three approved plans may be sub- (C) necessary to effectively achieve the there has been fraud or abuse involving Fed- mitted by state applicants. purposes of this Act described in section 3 by eral funds under the plan. (3) REQUIREMENT TO DISAPPROVE PLAN.— adhering to the conditions described in sec- (B) TRANSITION PERIOD.—In terminating an The Board must disapprove a flexibility plan tions 6 and 7. approved flexibility plan under this para- if the Board determines that— (2) EFFECTIVE PERIOD OF WAIVER.—A waiv- graph, the Board shall allow a reasonable pe- (A) implementation of the plan would re- er granted under this section shall terminate riod of time for appropriate Federal agencies sult in any increase in the total amount of on the earlier of— and eligible applicants to resume adminis- (A) the expiration of a period specified by obligations or outlays of discretionary ap- tration of Federal programs that are eligible the affected Federal agency not to exceed propriations or direct spending under Fed- Federal financial assistance programs in- five years from the date the Board receives eral financial assistance programs, over the cluded in the plan. the signed memorandum of understanding; amounts of such obligations and outlays (2) REVOCATION OF WAIVER.— or that would occur under those programs with- (A) The Board may recommend that an af- (B) any date on which the flexibility plan fected Federal agency, and an affected Fed- out implementation of the plan; or for which the waiver is granted ceases to be (B) the flexibility plan fails to comply with eral agency may, revoke a waiver under sec- effective. tion 7(f) if the applicant of the approved paragraph (1). (3) RESTRICTION ON WAIVER AUTHORITY.— flexibility plan fails to— (4) SPECIFICATION OF PERIOD OF EFFECTIVE- Any affected Federal agency may not grant (i) comply with the requirements of the NESS.—In approving any flexibility plan, the a waiver for a statutory or regulatory re- Board shall specify the period during which plan; quirement of an eligible Federal financial as- (ii) make acceptable progress towards the plan is effective, which is no case shall sistance program requested under this sec- be greater than 5 years from the date of ap- achieving the goals and performance criteria tion that— set forth in the plan; or proval. (A) may be waived under another provision (iii) use funds in accordance with the plan. (d) MEMORANDA OF UNDERSTANDING RE- of law except in accordance with the require- (B) Affected Federal agencies shall revoke QUIRED.— ments and limitations imposed by that other all waivers issued under section 7(f) for a (1) IN GENERAL.—An approved flexibility provision of law; plan may not take effect until the Board re- (B) enforces statutory or constitutional flexibility plan if the Board terminates the ceives a signed memorandum of understand- rights of individuals including the right to plan. (C) EXPLANATION REQUIRED.—In the case of ing agreed to by the eligible applicant that equal access and opportunity in housing and termination of a plan or revocation of a would receive Federal financial assistance education, including any requirement under waiver, as appropriate, the Board or affected administered under the flexibility plan and the Individuals with Disabilities Education Federal agencies shall provide for the former by each affected Federal agency. Act (20 U.S.C. 1400 et seq); (2) CONTENTS.—A memorandum of under- (C) enforces any civil rights that prohibit eligible applicant a written justification of standing under this subsection shall specify discrimination on the basis of race, color, re- the reasons for termination or revocation. all understanding that have been reached by ligion, sex, national origin, age, handicap, or SEC. 09 EVALUATIONS AND REPORTS. the affected Federal agencies and the eligible disability; (a) APPROVED APPLICANTS. applicant. The memorandum shall include (D) protects public health and safety, the (1) IN GENERAL.—An applicant of an ap- understanding with respect to— environment, labor standards, or worker proved flexibility plan, in accordance with (A) the conditions described in sections 6 safety; guidance issued by the Board, shall— and 7; (E) provides for a maintenance of effort, (A) submit any reports on and cooperate in (B) the effective dates of all State; local or matching share or prohibition on supplant- any audits of the implementation of its ap- tribal government waivers; ing; or proved flexibility plan; and S10340 CONGRESSIONAL RECORD — SENATE September 11, 1996 (B) monitor the effect implementation of (2) evaluates if or how the Flexibility pro- INOUYE AMENDMENT NO. 5250 the plan has had on— vided by this Act has improved the system of Mr. SHELBY (for Mr. INHOFE) pro- (i) individuals who receive services and Federal financial assistance to State, local benefits under the plan; and tribal governments, and enabled govern- posed an amendment to the bill, H.R. (ii) communities in which those individ- ments and community organizations to work 3756, supra; as follows: uals live; together more effectively; and On page 60, line 19 strike all through line (iii) costs of administering and providing (3) includes recommendations with respect 21. assistance under eligible Federal financial to flexibility for State, local and tribal gov- assistance programs included in the plan; ernments. MCCAIN AMENDMENT NO. 5251 and SEC. 010. REPEAL. Mr. SHELBY (for Mr. MCCAIN) pro- (iv) performance of the eligible Federal fi- This Act is repealed on January 1, 2005. posed an amendment to the bill, H.R. nancial assistance programs included in the SEC. 011. DELIVERY DATE OF FEDERAL CON- plan compared to the performance of such TRACT, GRANT, AND ASSISTANCE AP- 3756, supra; as follows: programs prior to implementation of the PLICATIONS. At the appropriate place in the bill, insert plan. (a) GENERAL RULES.— the following new section: (2) INITIAL 1-YEAR REPORT.—No later than (1) DATE OF DELIVERY.—The Director of the SEC. . (a) No later than 45 days after the 90 days after the end of the 1-year period be- Office of Management and Budget shall di- date of the enactment of this Act, the In- ginning on the date the plan takes effect, rect all Federal agencies to develop a con- spector General of each Federal department and annually thereafter, the approved appli- sistent policy relating to Federal contract, or agency that uses administratively uncon- cant, respectively, shall submit to the Board grant, and other assistance applications trollable overtime in the pay of any em- a report on the principal activities, achieve- which stipulated that if any bid, grant appli- ployee shall— ments, and shortcomings under the plan dur- cation, or other document required to be (1) conduct an audit on the use of adminis- ing the period covered by the report, compar- filled within a prescribed period or on or be- tratively uncontrollable overtime by em- ing those achievements and shortcomings to fore a prescribed date is, after such period or ployees of such department or agency, which the goals and performance criteria included such date delivered by United States mail to shall include— (A) an examination of the policies, extent, in the plan under section 6(c)(3). the agency, officer, or office with such bid, costs, and other relevant aspects of the use (3) FINAL REPORT.—No later than 120 days grant application, or other document is re- of administratively uncontrollable overtime after the end of the effective period of an ap- quired to be made, the date of the United at the department or agency; and proved flexibility plan, the approved appli- States postmark stamped on the cover in (B) a determination of whether the eligi- cant shall submit to the Board a final report which such bid, grant application, or other bility criteria of the department or agency on implementation of the plan, including a document is mailed shall be deemed to be and payment of administratively uncontrol- full evaluation of the successes and short- the date of delivery, as the case may be. lable overtime comply with Federal statu- comings of the plan and the effects of that (2) MAILING REQUIREMENTS.—This sub- tory and regulatory requirements; and implementation on individuals who receive section applies only if— (2) submit a report of the findings and con- benefits under the eligible Federal financial (A) the postmark date falls within the pre- clusions of such audit to— assistance programs under the plan. scribed period or on or before the prescribed (A) the Office of Personnel Management; (b) BOARD.—No later than two years after date for the filing (including any extension (B) the Government Affairs Committee of the date of the enactment of this Act, and granted for such filing) of the bid, grant ap- the Senate; and annually thereafter, the Board shall submit plication, or other document; and (C) the Government Reform and Oversight a report to the President and the Congress (B) the bid, grant application, or other doc- Committee of the House of Representatives. on the Federal statutory and regulatory re- ument was, within the time prescribed in (b) No later than 30 days after the submis- quirements of eligible Federal financial as- subparagraph (A), deposited in the mail in sion of the report under subsection (a), the sistance programs that are most frequently the United States in an envelope or other ap- Office of Personnel Management shall issue waived under section 7(f) with respect to ap- propriate wrapper, postage prepaid, properly revised guidelines to all Federal departments proved flexibility plans. The President shall addressed to the agency, officer, or office and agencies that— review the report and identify those statu- with which the bid, grant application, or (1) limit the use of administratively uncon- tory and regulatory requirements that the other document is required to be made. trollable overtime to employees meeting the President determines should be amended or (b) POSTMARKS.—This section shall apply statutory intent of section 5545(c)(2) of title 5, United States Code; and repealed. in the case of postmarks not made by the (2) expressly prohibit the use of adminis- (c) DIRECTOR.—Two years after this Act United States Postal Service only if and to the extent provided by the regulations pre- tratively uncontrollable overtime for— goes into effect, and no less than 60 days (A) customary or routine work duties; and after repeal of this Act, the Director shall re- scribed by Federal agencies. (B) work duties that are primarily admin- port on its progress in achieving the func- (c) REGISTERED AND CERTIFIED MAILING.— istrative in nature, or occur in noncompel- (1) REGISTERED MAIL.—For purposes of this tions outlined in section 5(d). ling circumstances. (c) GENERAL ACCOUNTING OFFICE.— section, if any such bid, grant application, or (1) Beginning on the date of enactment of other document is sent by United States reg- this Act, the General Accounting Office istered mail— HOLLINGS AMENDMENT NO. 5252 shall— (A) such registration shall be prima facie Mr. SHELBY (for Mr. HOLLINGS) pro- (A) evaluate the effectiveness of eligible evidence that the bid, grant application, or posed an amendment to the bill, H.R. Federal financial assistance programs in- other document was delivered to the agency, 3756, supra; as follows: officer, or office to which addressed; and cluded in flexibility plans approved pursuant At the appropriate place, insert the follow- to this Act compared with such programs (B) the date of registration shall be deemed the postmark date. ing: not included in a flexibility plan; SEC. . Notwithstanding section 8116 of (2) CERTIFIED MAIL.—Federal agencies are (B) establish and maintain, through the ef- title 5, United States Code, and in addition authorized to provide by regulations the ex- fective date of this statute, a program for to any payment made under 5 U.S.C. 8101 et tent to which the provisions of paragraph (1) the ongoing collection of data and analysis seq., beginning in fiscal year 1997 and there- of this subsection with respect to prima facie of each eligible Federal financial assistance after, the head of any department or agency program included in an approved flexibility evidence of delivery and the postmark date is authorized to pay from appropriations plan. shall apply to certified mail. made available to the department or agency FFECTIVE DATE.—This section shall (2) No later than January 1, 2005, the Gen- (d) E a death gratuity to the personal representa- eral Accounting Office shall submit a report take effect on the date of the enactment of tive (as that term is defined by applicable to Congress and the President that describes this Act and shall remain in effect notwith- law) of a civilian employee of that depart- and evaluates the results of the evaluations standing section 10 of this Act. ment or agency whose death resulted from conducted pursuant to paragraphs (1) and an injury sustained in the line of duty on or any recommendations on how to improve STEVENS AMENDMENT NO. 5249 after August 2, 1990: Provided, That payments flexibility in the administration of eligible made pursuant to this section, in combina- Mr. SHELBY (for Mr. STEVENS) pro- Federal Financial assistance programs. tion with the payments made pursuant to (d) ADVISORY COMMISSION ON INTERGOVERN- posed an amendment to the bill, H.R. sections 8133(f) and 8134(a) of such title 5 and MENTAL RELATIONS.—No later than January 3756, supra; as follows: section 312 of Public Law 103–332 (108 Stat. 1, 2005, the Advisory Commission on Inter- SEC. . Notwithstanding the provision 2537), may not exceed a total of $10,000 per governmental Relations shall submit a re- under the heading ‘‘ADVISORY COMMISSION ON employee. port to the Congress and President that— INTERGOVERNMENTAL RELATIONS’’ under title (1) describes the extent to which this Act IV of the Treasury, Postal Service, and Gen- SHELBY (AND KERREY) has improved the ability of State, local and eral Government Appropriations Act, 1996 AMENDMENT NO. 5253 tribal governments, particularly smaller (Public Law 104–52; 109 Stat. 480), the Advi- units of government, to make more effective sory Commission on Intergovernmental Re- Mr. SHELBY (for himself and Mr. use of two or more Federal financial assist- lations may continue in existence during fis- KERREY) proposed an amendment to ance programs included in a flexibility plan; cal year 1997 and each fiscal year thereafter. the bill, H.R. 3756, supra; as follows: September 11, 1996 CONGRESSIONAL RECORD — SENATE S10341 At the appropriate place in the bill insert these practices undermines the Govern- United States Government Standard General the following new section: ment’s ability to provide credible and reli- Ledger at the transaction level. SEC. . EXPLOSIVES DETECTION CANINE PRO- able financial data and encourages already (b) PRIORITY.—Each agency shall give pri- GRAM. widespread Government waste, and will not ority in funding and provide sufficient re- (a) AUTHORIZATION.— assist in achieving a balanced budget. sources to implement this title. (1) The Secretary of the Treasury is au- (4) Waste and inefficiency in the Federal (c) AUDIT COMPLIANCE FINDING.— thorized to establish scientific certification Government undermine the confidence of the (1) IN GENERAL.—Each audit required by standards for explosives detection canines, American people in the Government and re- section 3521(e) of title 31, United States Code, and shall provide, on a reimbursable basis, duce the Federal Government’s ability to ad- shall report whether the agency financial for the certification of explosives detection dress vital public needs adequately. management systems comply with the re- canines employed by federal agencies, or (5) To rebuild the accountability and credi- quirements of subsection (a). (2) CONTENT OF REPORTS.—When the person other agencies providing explosives detec- bility of the Federal Government, and re- performing the audit required by section tion services at airports in the United store public confidence in the Federal Gov- 3521(e) of title 31, United States Code, reports States. ernment, agencies must incorporate ac- that the agency financial management sys- (2) The Secretary of the Treasury shall es- counting standards and reporting objectives tems do not comply with the requirements of tablish an explosives detection canine train- established for the Federal Government into subsection (a), the person performing the ing program for the training of canines for their financial management systems so that audit shall include in the report on the explosives detection at airports in the Unit- all the assets and liabilities, revenues, and audit— ed States. expenditures or expenses, and the full costs (A) the name and position of any officer or (b) AUTHORIZATION OF APPROPRIATIONS.— of programs and activities of the Federal employee responsible for the financial man- There are authorized to be appropriated such Government can be consistently and accu- agement systems that have been found not sums as may be necessary to carry out the rately recorded, monitored, and uniformly to comply with the requirements of sub- purposes of this section. reported throughout the Federal Govern- ment. section (a); (6) Since its establishment in October 1990, (B) all facts pertaining to the failure to SHELBY AMENDMENT NO. 5254 the Federal Accounting Standards Advisory comply with the requirements of subsection Mr. SHELBY proposed an amend- Board (hereinafter referred to as the (a), including— ‘‘FASAB’’) has made substantial progress to- (i) the nature and extent of the noncompli- ment to the bill, H.R. 3756, supra; as ance; follows: ward developing and recommending a com- prehensive set of accounting concepts and (ii) the primary reason or cause of the non- At the appropriate place in the bill, insert standards for the Federal Government. When compliance; the following; the accounting concepts and standards devel- (iii) any official responsible for the non- SEC. . DESIGNATION OF MARK O. HATFIELD oped by FASAB are incorporated into Fed- compliance; and UNITED STATES COURTHOUSE. eral financial management systems, agencies (iv) any relevant comments from any re- The United States Courthouse under con- will be able to provide cost and financial in- sponsible officer or employee; and struction at 1030 Southwest 3d Avenue in formation that will assist the Congress and (C) a statement with respect to the rec- Portland, Oregon, shall be known and des- financial managers to evaluate the cost and ommended remedial actions and the time- ignated as the ‘‘Mark O. Hatfield United performance of Federal programs and activi- frames to implement such actions. States Courthouse’’. ties, and will therefore provide important in- (d) COMPLIANCE DETERMINATION.— SEC. 2. REFERENCES. formation that has been lacking, but is need- (1) IN GENERAL.—No later than the date de- Any reference in a law, map, regulation, ed for improved decisionmaking by financial scribed under paragraph (2), the Director, document, paper, or other record of the Unit- managers and the Congress. acting through the Controller of the Office of ed States to the courthouse referred to in (7) The development of financial manage- Federal Financial Management, shall deter- section 1 shall be deemed to be a reference to ment systems with the capacity to support mine whether the financial management sys- the ‘‘Mark O. Hatfield United States Court- these standards and concepts will, over the tems of an agency comply with the require- house’’. long term, improve Federal financial man- ments of subsection (a). Such determination shall be based on— SEC. 3. EFFECTIVE DATE. agement. (b) PURPOSES.—The purposes of this title (A) a review of the report on the applicable This section shall take effect on January 2, are to— agency-wide audited financial statement; 1997. (1) provide for consistency of accounting (B) the agency comments on such report; by an agency from one fiscal year to the and BROWN AMENDMENT NO. 5255 next, and uniform accounting standards (C) any other information the Director considers relevant and appropriate. Mr. SHELBY (for Mr. BROWN) pro- throughout the Federal Government; (2) DATE OF DETERMINATION.—The deter- posed an amendment to the bill, H.R. (2) require Federal financial management systems to support full disclosure of Federal mination under paragraph (1) shall be made 3756, supra; as follows: financial data, including the full costs of no later than 90 days after the earlier of— At the end of the bill, add the following Federal programs and activities, to the citi- (A) the date of the receipt of an agency- new title: zens, the Congress, the President, and agen- wide audited financial statement; or TITLE ll—FEDERAL FINANCIAL cy management, so that programs and ac- (B) the last day of the fiscal year following MANAGEMENT IMPROVEMENT tivities can be considered based on their full the year covered by such statement. (e) COMPLIANCE IMPLEMENTATION.— SEC. ll01. SHORT TITLE. costs and merits; (3) increase the accountability and credi- (1) IN GENERAL.—If the Director determines This title may be cited as the ‘‘Federal Fi- bility of Federal financial management; that the financial management systems of nancial Management Improvement Act of (4) improve performance, productivity and an agency do not comply with the require- 1996’’. efficiency of Federal Government financial ments of subsection (a), the head of the agen- ll SEC. 02. FINDINGS AND PURPOSES. management; cy, in consultation with the Director, shall (a) FINDINGS.—The Congress finds the fol- (5) establish financial management sys- establish a remediation plan that shall in- lowing: tems to support controlling the cost of Fed- clude the resources, remedies, and inter- (1) Much effort has been devoted to eral Government; mediate target dates necessary to bring the strengthening Federal internal accounting (6) build upon and complement the Chief agency’s financial management systems into controls in the past. Although progress has Financial Officers Act of 1990 (Public Law compliance. been made in recent years, Federal account- 101–576; 104 Stat. 2838), the Government Per- (2) TIME PERIOD FOR COMPLIANCE.—A reme- ing standards have not been uniformly im- formance and Results Act of 1993 (Public diation plan shall bring the agency’s finan- plemented in financial management systems Law 103–62; 107 Stat. 285), and the Govern- cial management systems into compliance for agencies. ment Management Reform Act of 1994 (Pub- no later than 2 years after the date on which (2) Federal financial management contin- lic Law 103–356; 108 Stat. 3410); and the Director makes a determination under ues to be seriously deficient, and Federal fi- (7) increase the capability of agencies to paragraph (1), unless the agency, with con- nancial management and fiscal practices monitor execution of the budget by more currence of the Director— have failed to— readily permitting reports that compare (A) determines that the agency’s financial (A) identify costs fully; spending of resources to results of activities. management systems are so deficient as to (B) reflect the total liabilities of congres- SEC. ll03. IMPLEMENTATION OF FEDERAL FI- preclude compliance with the requirements sional actions; and NANCIAL MANAGEMENT IMPROVE- of subsection (a) within 2 years; (C) accurately report the financial condi- MENTS. (B) specifies the most feasible date for tion of the Federal Government. (a) IN GENERAL.—Each agency shall imple- bringing the agency’s financial management (3) Current Federal accounting practices do ment and maintain financial management systems into compliance with the require- not accurately report financial results of the systems that comply with Federal financial ments of subsection (a); and Federal Government or the full costs of pro- management systems requirements, applica- (C) designates an official of the agency who grams and activities. The continued use of ble Federal accounting standards, and the shall be responsible for bringing the agency’s S10342 CONGRESSIONAL RECORD — SENATE September 11, 1996 financial management systems into compli- SEC. ll05. REPORTING REQUIREMENTS. ports both financial and nonfinancial func- ance with the requirements of subsection (a) (a) REPORTS BY DIRECTOR.—No later than tions of the Federal Government or compo- by the date specified under subparagraph (B). March 31 of each year, the Director shall nents thereof. (3) TRANSFER OF FUNDS FOR CERTAIN IM- submit a report to the Congress regarding SEC. ll08. EFFECTIVE DATE. PROVEMENTS.—For an agency that has estab- implementation of this title. The Director This title shall take effect on October 1, lished a remediation plan under paragraph may include the report in the financial man- 1996. (2), the head of the agency, to the extent pro- agement status report and the 5-year finan- vided in an appropriation and with the con- cial management plan submitted under sec- REID (AND OTHERS) AMENDMENT currence of the Director, may transfer not to tion 3512(a)(1) of title 31, United States Code. NO. 5256 exceed 2 percent of available agency appro- (b) REPORTS BY THE COMPTROLLER GEN- priations to be merged with and to be avail- ERAL.—No later than October 1, 1997, and Oc- Mr. REID (for himself, Mr. LEVIN, able for the same period of time as the ap- tober 1, of each year thereafter, the Comp- and Mr. BIDEN) proposed an amend- propriation or fund to which transferred, for troller General of the United States shall re- ment to the bill, H.R. 3756, supra; as priority financial management system im- port to the appropriate committees of the follows: provements. Such authority shall be used Congress concerning— On page 91, line 3, strike ‘‘The’’ and insert only for priority financial management sys- (1) compliance with the requirements of ‘‘Except as provided in subsection (f), the’’. tem improvements as identified by the head section ll03(a) of this title, including On page 92, between lines 21 and 22, add the of the agency, with the concurrence of the whether the financial statements of the Fed- following: Director, and in no case for an item for eral Government have been prepared in ac- (f)(1) Any former employee of the White which Congress has denied funds. The head of cordance with applicable accounting stand- House Travel Office whose employment in the agency shall notify Congress 30 days be- ards; and that office was terminated on May 19, 1993, fore such a transfer is made pursuant to such (2) the adequacy of uniform accounting and who was subject to criminal indictment authority. standards for the Federal Government. for conduct in connection with such employ- (4) REPORT IF NONCOMPLIANCE WITHIN TIME SEC. ll06. CONFORMING AMENDMENTS. ment, shall be reimbursed for attorney fees PERIOD.—If an agency fails to bring its finan- (a) AUDITS BY AGENCIES.—Section 3521(f)(1) and costs under this section but only if the cial management systems into compliance of title 31, United States Code, is amended in claim for such attorney fees and costs, which within the time period specified under para- the first sentence by inserting ‘‘and the Con- shall be referred to the chief judge of the graph (2), the Director shall submit a report troller of the Office of Federal Financial United States Court of Federal Claims, is de- of such failure to the Committees on Govern- Management’’ before the period. termined by the chief judge to be a legal or mental Affairs and Appropriations of the (b) FINANCIAL MANAGEMENT STATUS RE- equitable claim, as provided in paragraph (2). Senate and the Committees on Government PORT.—Section 3512(a)(2) of title 31, United (2) The chief judge shall— Reform and Oversight and Appropriations of States Code, is amended by— (A) proceed according to the provisions of the House of Representatives. The report (1) in subparagraph (D) by striking ‘‘and’’ sections 1492 and 2509 of title 28, United shall include— after the semicolon; States Code; and (A) the name and position of any officer or (2) by redesignating subparagraph (E) as (B) report back to the Senate, at the earli- employee responsible for the financial man- subparagraph (F); and est practicable date, providing— agement systems that have been found not (3) by inserting after subparagraph (D) the (i) such findings of fact and conclusions to comply with the requirements of sub- following: that are sufficient to inform the Congress of section (a); ‘‘(E) a listing of agencies whose financial the nature, extent, and character of the (B) the facts pertaining to the failure to management systems do not comply sub- claim for compensation referred to in this comply with the requirements of subsection stantially with the requirements of the Fed- section as a legal or equitable claim against (a), including the nature and extent of the eral Financial Management Improvement the United States or a gratuity; and (ii) the amount, if any, legally or equitably noncompliance, the primary reason or cause Act of 1996, the period of time that such due from the United States to any individual for the failure to comply, and any extenuat- agencies have not been in compliance, and a referred to in this section. ing circumstances; summary statement of the efforts underway (C) a statement of the remedial actions to remedy the noncompliance; and’’. needed; and SEC. ll07. DEFINITIONS. HATCH AMENDMENT NO. 5257 (D) a statement of any administrative ac- For purposes of this title: Mr. HATCH proposed an amendment tion to be taken with respect to any respon- (1) AGENCY.—The term ‘‘agency’’ means a to amendment No. 5256 proposed by Mr. sible officer or employee. department or agency of the United States REID to the bill, H.R. 3756, supra; as fol- (f) PERSONAL RESPONSIBILITY.—Any finan- Government as defined in section 901(b) of lows: cial officer or program manager who know- title 31, United States Code. Strike all after the first word and insert ingly and willfully commits, permits, or au- (2) DIRECTOR.—The term ‘‘Director’’ means the following: thorizes material deviation from the require- the Director of the Office of Management ments of subsection (a) may be subject to ad- (2) VERIFICATION REQUIRED.—The Secretary and Budget. shall pay an individual in full under para- ministrative disciplinary action, suspension (3) FEDERAL ACCOUNTING STANDARDS.—The from duty, or removal from office. graph (1) upon submission by the individual term ‘‘Federal accounting standards’’ means of documentation verifying the attorney fees ll SEC. 04. APPLICATION TO CONGRESS AND applicable accounting principles, standards, and costs. THE JUDICIAL BRANCH. and requirements consistent with section (3) NO INFERENCE OF LIABILITY.—Liability (a) IN GENERAL.—The Federal financial 902(a)(3)(A) of title 31, United States Code, of the United States shall not be inferred management requirements of this title may and includes concept statements with re- from enactment of or payment under this be adopted by— spect to the objectives of Federal financial subsection. (1) the Senate by resolution as an exercise reporting. (b) LIMITATION ON FILING OF CLAIMS.—The of the rulemaking power of the Senate; (4) FINANCIAL MANAGEMENT SYSTEMS.—The Secretary of the Treasury shall not pay any (2) the House of Representatives by resolu- term ‘‘financial management systems’’ in- claim filed under this section that is filed tion as an exercise of the rulemaking power cludes the financial systems and the finan- later than 120 days after the date of the en- of the House of Representatives; or cial portions of mixed systems necessary to actment of this Act. (3) the Judicial Conference of the United support financial management, including (c) LIMITATION.—Payments under sub- States by regulation for the judicial branch. automated and manual processes, proce- section (a) shall not include attorney fees or (b) STUDY AND REPORT.—No later than Oc- dures, controls, data, hardware, software, costs incurred with respect to any Congres- tober 1, 1997— and support personnel dedicated to the oper- sional hearing or investigation into the ter- (1) the Secretary of the Senate and the ation and maintenance of system functions. mination of employment of the former em- Clerk of the House of Representatives shall (5) FINANCIAL SYSTEM.—The term ‘‘finan- ployees of the White House Travel Office. jointly conduct a study and submit a report cial system’’ includes an information sys- (d) REDUCTION.—The amount paid pursuant to Congress on how the offices and commit- tem, comprised of one or more applications, to this section to an individual for attorney tees of the Senate and the House of Rep- that is used for— fees and costs described in subsection (a) resentatives, and all offices and agencies of (A) collecting, processing, maintaining, shall be reduced by any amount received be- the legislative branch may achieve compli- transmitting, or reporting data about finan- fore the date of the enactment of this Act, ance with financial management and ac- cial events; without obligation for repayment by the in- counting standards in a manner comparable (B) supporting financial planning or budg- dividual, for payment of such attorney fees to the requirements of this title; and eting activities; and costs (including any amount received (2) the Chief Justice of the United States (C) accumulating and reporting costs infor- from the funds appropriated for the individ- shall conduct a study and submit a report to mation; or ual in the matter relating to the ‘‘Office of Congress on how the judiciary may achieve (D) supporting the preparation of financial the General Counsel’’ under the heading ‘‘Of- compliance with financial management and statements. fice of the Secretary’’ in title I of the De- accounting standards in a manner com- (6) MIXED SYSTEM.—The term ‘‘mixed sys- partment of Transportation and Related parable to the requirements of this title. tem’’ means an information system that sup- Agencies Appropriations Act, 1994). September 11, 1996 CONGRESSIONAL RECORD — SENATE S10343 (c) PAYMENT IN FULL SETTLEMENT OF ized to meet during the session of the into a dynamic and effective job cre- CLAIMS AGAINST THE UNITED STATES.—Pay- Senate on Wednesday, September 11, ation incentive that helps to bring new ment under this section, when accepted by 1966, at 9 a.m. to hold a closed business and high-paying jobs to Puerto Rico. an individual described in subsection (a), meeting. By doing so, we will raise Puerto Rico’s shall be in full satisfaction of all claims of, or on behalf of, the individual against the The PRESIDING OFFICER. Without economic standards and provide effi- United States that arose out of the termi- objection, it is so ordered. cient Federal incentives to accomplish nation of the White House Travel Office em- SUBCOMMITTEE ON INTERNATIONAL OPERATIONS those goals. I firmly believe that Con- ployment of that individual on May 19, 1993. Mr. SHELBY. Mr. President, I ask gress, working with Governor Rossello SEC. 529. None of the funds made available unanimous consent that the Sub- and other elected leaders from Puerto in this Act may be used by the Executive Of- committee on International Operations Rico, can successfully fashion a pro- fice of the President to request from the Fed- of the Committee on Foreign Relations gram that achieves economic progress eral Bureau of Investigation any official for Puerto Rico and efficiency in Fed- background investigation report on any indi- be authorized to meet during the ses- vidual, except when it is made known to the sion of the Senate on Wednesday, Sep- eral expenditures.∑ Federal official having authority to obligate tember 11, at 2 p.m. f or expend such funds that— The PRESIDING OFFICER. Without SHOULD WE TROT OUT THE NEW (1) such individual has given his or her ex- objection, it is so ordered. DEAL AGAIN? press written consent for such request not SUBCOMMITTEE ON TRANSPORTATION AND more than 6 months prior to the date of such INFRASTRUCTURE ∑ Mr. SIMON. Mr. President, one of the request and during the same presidential ad- Mr. SHELBY. Mr. President, I ask ablest aldermen in the city of Chicago, ministration; or unanimous consent that the Sub- Burton F. Natarus, recently had a com- (2) such request is required due to extraor- mentary in the Chicago Tribune in dinary circumstances involving national se- committee on Transportation and In- curity. frastructure be granted permission to which he calls for a public works pro- SEC. 528. (a) REIMBURSEMENT OF CERTAIN conduct a hearing Wednesday, Septem- gram along the lines of the WPA. It ATTORNEY FEES AND COSTS.— ber 11, at 9:30 a.m., Hearing Room (SD– makes eminent good sense. (1) IN GENERAL.—The Secretary of the 406) on the Intermodal Surface Trans- We can learn from history, but we’re Treasury shall pay from amounts appro- portation Efficiency Act and the role of apparently unwilling to do it. priated in title I of this Act under the head- Federal, State, and local governments The welfare bill that passed is going ing, ‘‘Departmental Offices, Salaries and Ex- to cause huge problems in our society penses’’, up to $499,999 to reimburse former in surface transportation. The PRESIDING OFFICER. Without if we don’t come up with something employees of the White House Travel Office better and do it quickly. whose employment in that Office was termi- objection, it is so ordered. nated on May 19, 1993, for any attorney fees f A WPA type of welfare reform would and costs they incurred with respect to that cost a little more initially, but saves termination. ADDITIONAL STATEMENTS huge amounts of money in the long run f and be of great assistance to impover- ished areas, whether rural or urban. NOTICE OF HEARING REGARDING PUERTO RICO Right now we are trying to have wel- ECONOMIC INCENTIVES SPECIAL COMMITTEE ON AGING fare reform but do it without creating Mr. COHEN. Mr. President, I wish to ∑ Mr. D’AMATO. Mr. President, I have jobs for the unskilled and without hav- announce that the Special Committee said in the past, and continue to be- ing day care for their children. on Aging will hold a hearing on Thurs- lieve, that the action taken by Con- Anything labeled ‘‘welfare reform’’ day, September 19, 1996, at 9:30 a.m., in gress in eliminating section 936 with- that doesn’t provide the jobs and room 562 of the Dirksen Senate Office out a permanent replacement program doesn’t provide day care is not really Building. The hearing will discuss So- that provides a major stimulus to eco- welfare reform. cial Security reform. nomic development in Puerto Rico and Mr. President, I ask that Alderman the creation of well-paying and stable Natarus’ article be printed in the f jobs was unfortunate. RECORD. AUTHORITY FOR COMMITTEES TO We have the seeds of a replacement The article follows: MEET program in new Internal Revenue Code [From the Chicago Tribute, Aug. 22, 1996] section 30A that provides a targeted SHOULD WE TROT OUT THE NEW DEAL AGAIN? COMMITTEE ON ENERGY AND NATURAL wage credit to companies currently RESOURCES (By Burton F. Natarus) doing business in Puerto Rico based Mr. SHELBY. Mr. President, I ask On July 24, the Senate approved a com- upon the compensation paid to their unanimous consent that the Commit- prehensive welfare bill, the most sweeping qualified employees. Although this is tee on Energy and Natural Resources change since the creation of the New Deal 60 certainly movement in the right direc- years ago. Federal guarantees of cash assist- be granted permission to meet during tion, it does not allow new business ance for the nation’s poorest children have the session of the Senate on Wednes- starts, and the credit will sunset in 10 evaporated and states will be given new pow- day, September 11, 1996, for purposes of years. As such, it does not provide the ers to run welfare on their own. The measure conducting a full committee business also imposes a five-year lifetime limit on permanency that is needed to maintain meeting which is scheduled to begin at cash assistance payments to any family and the economic development of Puerto 9:30 a.m. The purpose of this meeting is requires the head of every family on welfare Rico, and will adversely impact States to consider pending calendar business. to work within two years or lose benefits. like New York. The PRESIDING OFFICER. Without While we laud the new thrust toward the Corporations headquartered in New self-sufficiency of our population, and the objection, it is so ordered. York State that have invested in Puer- end of the obsolete aspects of the 60-year-old COMMITTEE ON THE JUDICIARY to Rico employ over 39,000 persons in welfare system, we have serious concerns Mr. SHELBY. Mr. President, I ask New York. Moreover, Puerto Rican about jobs. Where are they to come from? unanimous consent that the Commit- subsidiaries of mainland companies Where is the new workforce to go? To Bain- bridge Island, Wash., to work for Microsoft? tee on the Judiciary be authorized to purchase approximately $195 million meet during the session of the Senate To the high-tech Naperville corridor for that per year worth of supplies and services chemical engineering position? The welfare on Wednesday, September 11, 1996, at 2 from New York. Consequently, when reform bill, which President Clinton is ex- p.m. to hold a hearing on ‘‘Mergers and the wage credit sunsets in 2006 and cor- pected to sign, presumes there will be jobs Competition in the Telecommuni- porations are drawn to other regions available for the workforce. These jobs may cations Industry.’’ where there are tax incentives, New or may not exist and we have to face the bru- The PRESIDING OFFICER. Without York State will lose not only jobs, but tal fact that generations of welfare families objection, it is so ordered. a significant amount of income from have no saleable working skills. Recall the controversial ‘‘workfare’’ Comprehensive SELECT COMMITTEE ON INTELLIGENCE goods and services. Employment and Training Act program from Mr. SHELBY. Mr. President, I ask Mr. President, Congress needs to the Nixon administration in the flush, unanimous consent that the Select work with the elected representatives moneyed ’70s, when Congress tried to create Committee on Intelligence be author- of Puerto Rico to expand section 30A jobs accompanied by teaching and skills S10344 CONGRESSIONAL RECORD — SENATE September 11, 1996 training. Limited in scope and a short-term World War II eventually solved the unem- Our provincialism is astounding. The solution to unemployment, it finally ended ployment problem but you can imagine how article refers to our debt as being $1.5 with the Reagan era and here we are 10 years bereft the country would have been for those billion. That may be a slight exaggera- later with no significant federal jobs pro- 10 years without the PWA, the WPA, the CCC tion, but it is at least $1.2 billion and gram as we throw the poor out on their own. and the TVA. One powerful reason why it With the CETA program, the private sector makes good economic sense to place people probably somewhat higher than that. created low-level and semi-skilled jobs, on the federal payroll is that the jobs are What is also of interest is their para- which concentrated in the food service, taxable and the tax monies revert to the fed- graph on relative cost paid by different truck driving and clerical fields. There were eral government as wages are disbursed. Pro- countries. They write: considerable financial incentives for the pri- grams such as the WPA pay for themselves It’s difficult for Europeans to accept that vate sector to participate in CETA. These in- in the long run, which is so much more fi- the U.N. is a budget-buster for the U.S. The centives do not exist today and the private nancially efficient than a dole or handout. costs to Americans for the U.N. in general sector may not be willing nor is it able to Furthermore, when the federal worker and U.N. peacekeeping in particular are sig- create entry-level jobs in sufficient numbers. leaves his public sector job he will be ready, nificantly lower than they are for Euro- In 1929, the Depression commenced its sad or at least more ready, for private sector em- peans. The U.S. costs for the 1996 U.N. regu- and ugly course and by 1933 12 million able- ployment, having received on-the-job train- lar budget come to only $1.24 per American, bodied Americans were out of work. No ing in a specific field. Incidentally, the jobs while the people of San Marino owe $4.75 work. No money. The country was, however, would not be ad aeternitum nor for the life- each. Luxembourg $2.06 each and for the fortunate enough to have Franklin Roosevelt time of an individual. They would be for a fi- Swedes $1.57 each. The U.S. per capita cost as its 32nd president. We know of his long nite period after which time others would be roster of massive relief measures and social for 16 U.N. peacekeeping operations in 1994 hired and given a chance to learn replicable programs to cope with the Depression and a was less than $4. skills. By creating these government jobs an country in crisis: farm relief, unemployment I ask my colleagues to read what Mr. economic rippling effect inevitably occurs in insurance, Social Security, fair bankruptcy which private industry is stimulated. Muldoon and Mr. Moreno have to say. and foreclosure procedures and numerous A federal public jobs program would not I ask that the op-ed piece be printed federal jobs measures. At the 1932 Demo- carry the stigma of welfare so public jobs in the RECORD. cratic National Convention in Chicago, Roo- must be made available for those who will no The op-ed piece follows: sevelt declared, ‘‘I pledge myself to a new longer be on the dole. We owe our citizens deal. . . . This is more than a political cam- WHY DO WE KEEP STIFFING THE U.N.? this much. This is indeed a call to arms and paign; it is a call to arms.’’ (By James P. Muldoon Jr. and Rafael What we need is a ‘‘new’’ New Deal and a in this matter we have no choice. Moreno) ‘The WPA was the most beneficial project call to arms. Let us recall some of those job- Italian President Oscar Scalfaro, in an ad- in the history of the United States. Bringing creating public works bills of the Roosevelt dress to the U.N. General Assembly earlier it back is long overdue . . . There are plenty administration. this year, diplomatically yet firmly took the of projects now without having to make In March 1933, his recovery plan included United States to task about its mountain of work. Everything is deteriorating—bridges, the Civilian Conservation Corps, which gave debt to the United Nations. Sadly, Scalfaro’s buildings, roads, schools, everything.’∑ 250,000 young men meals, housing, wages and message is hardly new. Over the past few the necessities of life for their work in the f months, nearly all our European partners national forests and other government prop- TRIBUTE TO OATS have expressed similar discontent with U.S. erties. leadership at the U.N. There was the Works Progress Administra- ∑ Mr. BOND. Mr. President, I rise This week the Council on Foreign Rela- tion and in the words of Sen. Paul Simon (D– today to pay a special tribute to Older tions issued a report by a bipartisan group of Ill.) 10 years ago, it was ‘‘refreshingly sen- Adults Transportation Service, Inc. U.S. foreign-policy experts, who warn that sible.’’ The WPA put 8.5 million people to Washington’s hostility to the U.N. is damag- work building bridges, airports, highways [OATS]. It is a great pleasure to recog- nize OATS for its 25 years of loyal serv- ing both the world organization and Ameri- and developing programs to foster cultural ca’s national interests. The report says that awareness. The Federal Art Project’s works ice to residents in the State of Mis- politicians have misrepresented U.N. activi- are still seen today in murals at such places souri. ties in such trouble spots as Somalia and as Lane Tech and the Lakeview Post Office. OATS was founded in November 1971, Bosnia in order to cover up their own policy Hundreds of thousands of Chicagoans worked as the Cooperative Transportation failures. for the WPA during these years, including Service, to provide reliable transpor- America’s U.N. debt now tops $1.5 billion. thousands of laborers, artists and writers French President Jacque Chirac chided who worked for $95 a month. In Illinois, from tation to seniors, people with disabil- members of Congress, in a joint session, say- 1935–38, these new hires built 28 million ities and rural residents of Missouri in ing their shortsightedness was weakening square feet of sidewalks, 1,895 rural bridges, order to increase their mobility to live America’s position of global leadership. Be- 300,000 public artworks. A recent New York independently in their own commu- hind the scenes, similar messages of concern Times Magazine article entitled, ‘‘When nities. Since then, the not-for-profit are being registered across Europe. Ameri- Work Disappears’’ recounts the staggering corporation has grown from 3 buses ca’s allies are confounded by the intense national accomplishments of the administra- serving 8 mid-Missouri counties, into a anti-U.N. rhetoric that has emerged during tion, from playgrounds, athletic fields, via- ducts and culverts, to LaGuardia Airport and fleet of over 300 vehicles serving 87 out the U.N.’s 50th anniversary year, intensify- FDR Drive. This week it has been nationally of Missouri’s 113 counties. Today, over ing as the presidential election nears. Since the end of the Cold War, the major reported that the cities with the most de- 1,000 volunteers and 342 drivers and powers have recognized that the U.S. could crepit crumbling and unsafe bridges in the staff dedicate their time and energy to not (and would not) be the world’s police- country are New York and Washington, D.C. increasing mobility and extending a In Chicago, we could also use the help of our man. For that reason, many countries, in- lifeline for those with special transpor- cluding the U.S. attempted to make the citizens in repairing old infrastructure. tation needs. The Public Works Administration created U.N.’s ‘‘collective security’’ machinery func- jobs and stimulated business between 1933 As OATS celebrates its 25th anniver- tion in response to a range of conflicts over and 1939. The federal government spent $6 sary on September 25, 1996, it is an the past five years that were not imagined billion on construction of the Washington, honor to congratulate its members on by the drafters of the U.N. Charter. Yet when D.C. Mall, Hoover Dam, the Lincoln Tunnel their long lasting commitment to Mis- the peacekeeping missions in Somalia, the and Ft. Knox. This bureau also created jobs sourians. I wish OATS the best of luck former Yugoslavia and Haiti lost their way, geared toward the preservation of public in all its future endeavors and contin- the ‘‘great powers’’ who approved and man- dated these missions conveniently shifted works. ued success in its service to others. The creation of the Tennessee Valley Au- ∑ most of the blame onto the secretary-general thority put the government in the electric f and the U.N. secretariat, distancing them- power business, selling electricity in com- WHY DO WE KEEP STIFFING THE selves from their decisions and mandates in petition with private firms, and giving the the Security Council. When the bills came government ownership of hydroelectric UNITED NATIONS? due, the greatest power—the United States— plants in large rivers. Under the program, ∑ Mr. SIMON. Mr. President, the Los said it was unable to pay. Norris Dam was built on the Tennessee River Angeles Times recently carried an op- It’s difficult for Europeans to accept that and the Bonneville and Grand Coulee on the ed piece by James P. Muldoon, Jr., and the U.N. is a budget-buster for the U.S. The Columbia River. These dams employed hun- Rafael Moreno under the title, ‘‘Why costs to Americans for the U.N. in general dreds of thousands of people who ended up and U.N. peacekeeping in particular are sig- not only supporting themselves and their Do We Keep Stiffing the U.N.?’’ nificantly lower than they are for Euro- families but constructing enduring legacies My colleagues know of my unhappi- peans. The U.S. costs for the 1996 U.N. regu- for the country. How many flood plains could ness with our failure to pay the debt lar budget come to only $1.24 per American, use dams right here in Illinois? we owe. while the people of San Marino owe $4.75 September 11, 1996 CONGRESSIONAL RECORD — SENATE S10345 each. Luxembourg $2.06 each and for the America’s post-war success, like the them to a community college or tech- Swedes $1.57 each. The U.S. per capita cost success of the Tuscaloosa facility, has nical school. for 16 U.N. peacekeeping operations in 1994 been a product of teamwork. In 1986, The reality is there is no way of was less than $4. Making matters worse is the U.S. arro- BF Goodrich joined forces with the achieving the kind of society we should gance when discussing problems of U.N. Uniroyal Co. to produce high-quality have on the cheap, as Darman points peacekeeping, especially regarding the U.N. tires. In 1990, the Uniroyal Goodrich out. troops in the former Yugoslavia, and the dis- Tire Co. became part of Michelin North The third reality that he mentions in avowal of Washington, particularly Con- America. This new team promises to be his article is that we are growing older gress, for America’s part in the ‘‘failure’’ of a leader in American industry for and obviously that has a huge impact the U.N. in the Balkans. The real facts re- many years to come. on the entitlement scene. garding the limitations of U.N. peacekeeping The important role the Uniroyal There is one other reality that he in the post-Cold War period is a shameful record of ‘‘great power’’ mismanagement and Goodrich plant has played in the devel- does not mention that ought to be put unrealistic mandates. The vast majority of opment of Tuscaloosa as a growing and on the table and that is in terms of U.N. Troops in peacekeeping missions are prosperous community cannot be over- taxation. Contrary to the general from such member states as Fiji, Pakistan, stated. It is a rare Tuscaloosa family myth, the percentage of our taxes that Malaysia, Italy and Spain. The permanent who does not have a father, son, broth- goes for government support is lower members of the Security Council—the U.S., er, sister, or cousin who is a current or than any of the countries of western Britain, France, Russia and China—have ex- previous employee of the plant. The Europe or Japan, Australia, and New traordinary power and can stop the expan- plant’s first weekly payroll, back in Zealand, if the Japanese industrial sion or addition of U.N. missions simply by voting no. The fact that they hold such 1946, was $542.23 for 12 employees. This compact is considered. The lone excep- power is the primary reason that they are payroll has grown to over $1.3 million tion to that is Turkey. expected to pay more for these missions and for 2,000 hard-working local men and We ought to be looking at a value- to deploy larger troop contingents. women. This income rolls over many added tax; we ought to be looking at a European concerns go well beyond the times in the local economy, benefiting more realistic gasoline tax; we ought matter of America’s $1.5-billion U.N. debt. all of Tuscaloosa’s businesses and indi- to be raising cigarette taxes, both for One thing that most bothers our allies is the viduals. our economic health and our physical cynical American tendency to take advan- I am immensely grateful for, and tage of the organization when it serves our health. national interest—as it did with Haiti—or to proud of, the Uniroyal Goodrich Tire In any event, the Darman discussion use it as an excuse to hide behind when it Manufacturing plant and the men and should move us a little more toward re- doesn’t—Bosnia, for example. women who work hard there every day. ality. This is not a debate about the $4.40 that On behalf of all Tuscaloosans, I would Mr. President, I ask that this article each American owes the U.N. but about the therefore like to congratulate the from The New York Times be printed kind of world we want in the 21st century. Uniroyal Goodrich Tire Manufacturing in the RECORD. Will it be one with the U.S. as the haughty plant for 50 years of outstanding pro- and lonely superpower or one with nations The article follows: and peoples following America’s moral lead- duction and community service. I wish [From the New York Times, Sept. 1, 1996] ership and working out differences through them another 50 years of success and IF WE WERE SERIOUS prosperity. dialogue, cooperation and common will, ∑ (By Richard Darman) something very similar to what the U.N. is f The prime-time convention shows have all about?∑ IF WE WERE SERIOUS come to their balloon-drop endings. The f mini-movies, zingers and dramatic speeches ∑ Mr. SIMON. Mr. President, when are over. What follows now, we are told, is THE 50TH ANNIVERSARY OF Richard Darman served as The Office of UNIROYAL GOODRICH PLANT IN the ‘‘serious campaign.’’ Management and Budget Director, I That is a notion which many would dismiss TUSCALOOSA, AL sometimes disagreed with him; but I as oxymoronic. But it has the virtue of sug- ∑ Mr. SHELBY. Mr. President, I rise always had great respect for him. gesting an interesting question: What impor- today in honor of the Uniroyal Good- He had an op-ed piece in The New tant issues might the candidates address if rich Tire Manufacturing facility in York Times on September 1 that con- the campaign actually were serious? Tuscaloosa, AL, which is celebrating tains a great deal of common sense; The question is not put to dismiss what its 50th year of successful production and as we know, common sense is all has been presented so far. Bill Clinton and Bob Dole have both recognized that a gov- and community service. For half a cen- too often the last thing that gets dis- erning majority requires far broader appeal tury, the Uniroyal Goodrich plant has cussed during a political campaign. than either party’s traditional base provides. been an important part of Tuscaloosa’s He says correctly that we have to They have both broadened their reach. economic and social fabric as well as a look at the entitlement picture. To Bob Dole has distanced himself from the source of great pride within the com- pretend that we can balance the budget dour anti-government focus of the House Re- munity. without looking at entitlements is liv- publicans by selecting Jack Kemp—signaling For the last 50 years, the history of ing in a dream world, even if both po- an interest in growth, while underlining his the Uniroyal Goodrich plant has re- litical parties were not asking for tax commitment to equal opportunity, inclusive- flected that of our Nation. In 1946, as ness and tolerance. Bill Clinton has adopted cuts. The request for tax cuts simply a Reaganesque command of symbols and our Nation was moving from wartime compounds this problem. ceremony, declaring ‘‘hope is back.’’ And he to a peacetime economy, BF Goodrich Second, he suggests that we have to has again reversed himself on welfare and was leading the way, purchasing an un- look at urban problems. If I can expand taxes, asserting ‘‘the era of big government finished tire plant from the Federal that to say we ought to be looking at is over.’’ Government, and on October 23, 1946, the question of poverty, which is what How much of this is to be taken seriously, rolling the first tire off the assembly he is really suggesting. That means others may judge. Choices have been framed: line. Since then, a long series of ambi- looking at education and some other whether to continue on the current path or tious modernizations and expansions pursue a bolder reach for growth; to rely on basics. government or ‘‘trust the people’’; to have enabled the Tuscaloosa facility to I have long favored having a WPA ‘‘bridge’’ forward or back to the future. The keep pace with the constant business type of jobs program where we would problem is that such formulations, though and technological innovations which pay people the minimum wage for 4- important, are abstract. As presented by the have been the hallmark of American days a week. The fifth day they would major candidates, they barely touch fun- industry. Although Tuscaloosa’s tire have to be out trying to find a job in damental issues America must face. manufacturing plant began by produc- the private sector. When people cannot One such issue, growing middle-class enti- ing belted bias tires in an 860,000- read and write, we would get them into tlements, was mentioned in a convention square-foot structure, today the facil- a program. If their literacy and edu- speech, but not by any of the candidates. Colin Powell warned of ‘‘condemning our ity is double its original size, 40 acres cational background was woefully in- children and grandchildren with a crushing under one roof, and produces high per- adequate, we would get them into a burden of debt that will deny them the formance radial tires 24 hours a day, 7 program to get their GED. If they have American Dream.’’ He noted, ‘‘We all need to days a week. no marketable skill, we would get understand it is the entitlement state that S10346 CONGRESSIONAL RECORD — SENATE September 11, 1996 must be reformed, and not just the welfare and offering viable solutions are not nec- Dunstable was divided into four dif- state.’’ Virtually all serious analysts agree: essarily the same. Jobs must be created near ferent parts—Dunstable, Monson, if entitlements are not reformed before the blighted areas, and tax incentives could help. Merrimack, and Hollis. Later on April baby-boom generation reaches age 60, the but they cannot possibly suffice. A zero cap- 3, 1746, then-Governor Benning Went- feel-good talk about recent progress on the ital gains rate will not counter the fear of worth signed the town’s first charter deficit will be replaced by a sense of crisis. random violence or organized mayhem. Low The sensible course is to avoid a baby- marginal rates alone will not produce officially naming the town Holles. It boomer retirement shock by addressing the healthy role models or families, effective was on this date that the people from a problem well in advance. But the major can- education, a reduction in drug abuse, or the loose settlement of families gathered didates either pretend the problem does not basics of a civilized infrastructure. Given the under one wing of a church in the Hol- exist, propose to hand it to a commission, or scale of the urban problem, very large lis area to join together to unite their wish it away with heroic assumptions about amounts of public and private investment town. economic growth. Indeed, while sidestepping are required. And while the investment may Originally, Hollis was granted the the problem, the candidates actually act as pay for itself over generations, in the near name of Holles after Governor Went- if government were going to be long, not term it means that in addition to tax incen- short, on revenue. Without providing credi- worth’s friend, the Duke of Newcastle. tives there must be significant spending. Yet Eventually, the town residents changed ble proposals for spending reduction, both these days, no major politician seems willing candidates offer the voters attractive tax to admit publicly that great dreams cannot the spelling of Holles to Hollis in honor cuts—what Ross Perot has termed ‘‘free be achieved on the cheap. of an English merchant they admired candy just before elections.’’ A third fundamental problem is not quite for his high level of intellect and his The facts are these, however: There are as obvious as the first two. It is the flip side generosity to Harvard College. Many good reasons public policy should seek to in- of a good thing: Americans can expect to live descendants of the town’s first settlers crease growth. These range from interests in longer. The Census Bureau estimates that, in still live in Hollis today. Before the reducing the deficit and financing Social Se- 2010, there will be more than 40 million signing of the charter, there were 75 curity to increasing opportunity for the poor Americans aged 65 and over. Six million will and improving the quality of life for all. But families that resided in the geographi- be 85 and over—and that is before the baby- cal location of Hollis. When the charter growth is limited by labor-force participa- boomers reach 85. with breakthroughs in bio- tion and the rate of increase in productivity. medical research, these numbers will be even was signed, 20 families were forced to These can and should be improved by cutting more compelling. There is not only a very reside in the Dunstable area. These 20 marginal tax rates and the tax on capital large generation headed toward retirement. families fought for 30 years to be re- gains. But significant improvements in pro- But in the move from the 20th to the 21st united with their fellow neighbors and ductivity also require radical improvements century, something close to an additional their home, Hollis. To this day, the in education and training, and major break- generation is being added to expected life. residents of Hollis use this example as throughs in research and development. This will necessitate a minor cultural and an illustration of their town’s commit- These, in turn, require the expenditure of po- economic revolution. It is not merely an litical and financial capital. Even with ment of unity. issue of entitlement finance. Retirement The passage of 250 years of history these, the likely increase in growth would ages will have to increase. Job and retrain- not suffice to offset too much free candy. ing opportunities will have to be developed. has changed the way of life for the peo- In any case, major improvements in long- New community-living arrangements will ple of Hollis. Some of the minor term productivity growth take time to have to be expanded. Profound issues of mo- changes include the tithing men and achieve. Meanwhile, the deficit cannot be rality will have to be confronted. fence viewers who have disappeared eliminated by focusing on non-entitlements Bob Dole has spoken eloquently of the from election ballots and the decay of and using the new line-item veto. The ‘‘anti- ‘‘gracious compensations of age.’’ At 73, he is the whipping post in the town common. government’’ public and politicians care too healthy and active—a symbol of the enor- much about expenditures for law enforce- Nevertheless, these few minor changes mous potential represented by the growing have not changed the bond the families ment, immigration control, drug abuse pre- numbers of healthy older Americans. He is vention, air safety, environmental protec- perfectly positioned to raise national con- feel for Hollis, nor the civic respon- tion, biomedical research, and so on. So if sciousness about the risks and opportunities sibilities they have held in the town the baby-boomers are to avoid a shock, if the presented by the aging of America. since 1746. Joan Tinklepaugh, who deficit is to be kept under control, and if a As the campaign moves into its ‘‘serious’’ wrote a history for the town, states it tax increase is to be avoided, entitlement re- phase, however, it may be naive to imagine best when she says, ‘‘we are all joined form will have to be faced promptly. that candidates might actually treat us as if together by the stitches of the quilt of This issue is at the heart of the budget we could face serious problems seriously. problem. Yet if it were merely budgetary, it humanity that makes up the town Bill Clinton has had four years to address called Hollis.’’ would long since have been solved. The di- these problems and has not yet done so. And lemma is that entitlements principally in- I congratulate the many residents of while elections elicit new proposals, they Hollis on this festive occasion, and for volve the broad American middle that is key rarely produce serious discussion. The politi- to electoral success. That is why entitle- cians are, naturally enough, trying to get their sense of unity and dedication. ments are the ‘‘third rail’’ of American poli- elected. To get them to be serious, we our- Enjoy the celebration and may the tics and lend themselves to demagoguery. selves would have to be serious. And if bal- years to come be as prosperous as your They are treated simplistically though they loons, simple nostrums and promises of free last 250 years. Happy birthday Hollis.∑ involve complex questions: Who in the mid- candy are all we demand, that is probably f dle class should be protected against exactly about all we will get.∑ what risks? What should be the relative re- f ORDERS FOR THURSDAY, sponsibility of government and individuals SEPTEMBER 12, 1996 in assuring risk protection? What are the ob- TRIBUTE TO THE TOWN OF HOL- ligations of working generations to genera- Mr. SHELBY. Mr. President, I ask LIS, NH, ON THE OCCASION OF unanimous consent that when the Sen- tions too young or too old to work? Leader- THEIR 250TH ANNIVERSARY ship is needed to help frame responsible an- ate completes its business today, it swers to just such difficult questions. Yet no ∑ Mr. SMITH. Mr. President, I rise stand in adjournment until the hour of candidate has trusted the people enough to today to pay tribute to the people of 9:30 a.m. on Thursday, September 12; risk a serious discussion. Hollis, NH, on their town’s 250th anni- further, that immediately following A second fundamental problem is as obvi- versary. Since April, the residents of the prayer, the Journal of proceedings ous as the first and as unattended: America’s Hollis have been celebrating their deposing inner cities. Clearly, talk of hope, be deemed approved to date, the morn- history and the American Dream is hollow if town’s anniversary with numerous fes- ing hour be deemed to have expired, it does not address the large population tivities including the strawberry fes- and the time for the two leaders be re- trapped in ghettos. Urban ghettos represent tival, a museum opening, a civic pro- served for their use later in the day, a moral failure and a substantial economic file, a firemen’s muster, an apple fes- the Senate immediately resume consid- cost. Indeed, if left unattended, the tival, a marathon road race and many eration of the Treasury-postal appro- decivilizing effects of urban neglect may other enjoyable events. The town’s priations bill, and further there be 15 pose a more widespread threat to the Amer- celebration on September 14th will minutes of debate equally divided in ican Dream. Yet this problem, too, has dif- mark their official 250th anniversary the usual form in regard to the pending ficulty attracting a serious word. Jack Kemp deserves credit for being among and is certain to bring the whole town amendments offered by Senators the few major politicians to put the urban together for this historic event. HATCH and REID. I further ask that problem on the national agenda. But, unfor- The history of Hollis dates back to prior to the second vote there be 2 min- tunately, putting this problem on the agenda the year 1746 when the area of West utes of debate equally divided. September 11, 1996 CONGRESSIONAL RECORD — SENATE S10347 The PRESIDING OFFICER. Without ment. Following those votes, the Sen- ADJOURNMENT UNTIL 9:30 A.M. objection, it is so ordered. ate will remain on the Treasury-postal TOMORROW f appropriations bill, and it is hoped we will complete action on that matter as Mr. SHELBY. Mr. President, if there PROGRAM early as possible so that the Senate is no further business to come before Mr. SHELBY. Under a previous order, may begin consideration of the Chemi- the Senate, I ask unanimous consent there will be two consecutive rollcall cal Weapons Convention Treaty during that the Senate now stand in adjourn- votes beginning at 9:45 tomorrow morn- Thursday’s session. The majority lead- ment under the previous order. ing. The first will be on the Hatch er has announced that rollcall votes There being no objection, the Senate, amendment regarding the White House will occur throughout the day on at 10:21 p.m., adjourned until Thursday, Travel Office, to be followed by a vote Thursday and Senators should plan September 12, 1996, at 9:30 a.m. on or in relation to the Reid amend- their schedules accordingly.