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

Vol. 144 WASHINGTON, THURSDAY, JUNE 11, 1998 No. 75 Senate The Senate met at 9:45 a.m. and was mittee substitute. Assuming cloture think that is why the majority leader called to order by the President pro fails, the Senate will continue debate was happy to say he will allow the tempore [Mr. THURMOND]. on the tobacco bill. The Senate may Democrats to have sort of a sub- also consider any other legislative or stantive amendment of their own PRAYER executive items that may be cleared choosing, and then we can proceed for- The Chaplain, Dr. Lloyd John for action. Therefore, rollcall votes are ward. But we can work this out. I just Ogilvie, offered the following prayer: possible throughout today’s session of wanted to make sure at least that was Almighty God, our purpose is to glo- the Senate. on the record at this time. rify You by serving our Nation. We Several Senators addressed the Mr. SMITH of Oregon. Mr. President, want to express an energetic earnest- Chair. I don’t suspect that will be a problem. ness about our work today. Help us to The PRESIDING OFFICER (Mr. ROB- We are going to check with the chair- know what You want and then want ERTS). The Senator from Massachusetts man and try and accommodate. what we know; to say what we mean, is recognized. f and mean what we say. Give us reso- Mr. KERRY. Mr. President, I know MORNING BUSINESS luteness and intentionality. Free us to my colleague wants to address the Sen- listen to You so intently that we can ate and I will only take a minute on The PRESIDING OFFICER. Under speak with courage. Keep us in the bat- the business side. It is my understand- the previous order, the Senate will pro- tle for truth rather than ego-skir- ing with respect to the tobacco bill, in ceed to a period for the transaction of mishes over secondary issues. Make us a discussion with the majority leader morning business until 11:15 a.m, with party to Your plans so we can give last night, that there would be a Demo- Senators permitted to speak for up to 5 leadership to our parties and then help cratic amendment, I believe, at 11:15, minutes, with the following exceptions: our parties work together to accom- with the understanding that the attor- the Senator from West Virginia, Mr. plish Your purposes. Make us one in neys’ fees amendment will follow that. ROCKEFELLER, for 10 minutes; the Sen- the expression of our patriotism. In the I can say to a certainty that on the ator from New Jersey, Mr. TORRICELLI, Name of our Lord and Savior. Amen. Democratic amendment, we will gladly for 15 minutes; the Senator from Mon- f enter into a time agreement. It will tana, Mr. BAUCUS, for 30 minutes; the not be a long time agreement. So we Senator from Maine, Ms. COLLINS, for RECOGNITION OF THE ACTING can anticipate moving to the attor- 15 minutes; the Senator from Massa- MAJORITY LEADER neys’ fees amendment, hopefully, in chusetts, Mr. KERRY, for 15 minutes; The PRESIDENT pro tempore. The the early afternoon. and the distinguished Senator from Or- acting majority leader is recognized. Mr. SMITH of Oregon. Mr. President, egon, Mr. SMITH, for 5 minutes. Mr. SMITH of Oregon. Thank you, the last amendment last night voted on Mr. SMITH of Oregon addressed the Mr. President. was a Democratic amendment, and Chair. f going back and forth, I believe the next The PRESIDING OFFICER. The Sen- one will be a Republican amendment. ator from Oregon is recognized. SCHEDULE However, the chairman is not here. We f Mr. SMITH of Oregon. Mr. President, will check with him, and if an accom- this morning, the Senate will be in a modation is necessary, we will pursue STATE OF RURAL OREGON period for morning business until 11:15 that. Mr. SMITH of Oregon. Mr. President, a.m. Following morning business, the Mr. KERRY. Mr. President, let me this coming weekend the President of Senate will resume consideration of just say to my friend, that is accurate the United States will travel to my the tobacco bill, and it is expected that in the sense there was a Democratic home State of Oregon to deliver the a Republican amendment will be of- amendment. But the discussion we had commencement speech at Portland fered regarding attorneys’ fees. It is with the majority leader and the man- State University. As Oregon’s junior hoped that a short time agreement can ager of the bill is the Democratic Senator, I welcome President Clinton. I be reached on that amendment so that amendments that have flowed to date look forward to seeing his remarks and remaining amendments can be offered were essentially responsive amend- want him to know he is welcome in my and debated throughout today’s ses- ments on the same subject to the Re- State. sion. At 12 noon, the Senate will pro- publican amendment. Effectively, While in Portland, he will find a ceed to a vote on the motion to invoke there hasn’t been a proactive, free- vital, vibrant community, like much of cloture on the modified tobacco com- standing Democratic amendment. I the Nation, which has enjoyed very

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

S6131 S6132 CONGRESSIONAL RECORD — SENATE June 11, 1998 good economic times. Because of this, the single value of supposedly protect- And 122 mills have shut down in Or- the President might leave Portland ing the environment. They want to egon since 1990. Timber receipts to thinking his administration’s policies, blow up these dams. Grant County for roads and schools de- even those regarding natural resources I am afraid I probably motivated clined from a high of $12.4 million in and the environment, have been good some of my environmental opponents 1992—$12.4 million—to $1.9 million in for Oregon. And if he does that, if he when I told them that when they blow 1997. What are we saying about schools? has that impression, he will be sadly the dams I will be on top of them, be- What are we saying about roads? mistaken. cause I feel very strongly that the mul- The amount of timber harvested from During the last recess, I traveled tiple of public values that are to be our public lands has been reduced by through the rest of Oregon. I returned served by these are still worthy values. approximately 80 percent. Under the from Washington last weekend having And there are many things we can do President’s Northwest Forest Plan, spent 5 days in eastern Oregon. I went to make them more environmentally only 3 million of the 24 million acres— to the communities of Condon, friendly, and we are doing that as we or 12 percent of the available acreage— Boardman, Hermiston, Pendleton, speak. is open for sustainable timber produc- LaGrande, Baker City, Ontario, Nyssa, Well, that is an aside. But the people tion. All this despite the fact that tree Burns, John Day, Enterprise, Milton- that I know in rural Oregon are good growth rates exceed harvest rates by 85 Freewater, and Ione. stewards of their land. After all, they to 90 percent. This region is the home to honest, need their land for their livelihoods, The Clinton administration would hard-working people. It is a region that and they desperately would like to pass have us believe that they need to take is also home to some of the most it on to their next generation, to their over the management of Oregon’s natu- breathtaking scenery on the Earth. It children. Moreover, these people make ral resources because we are incapable is a region of forests and rivers, moun- their living by producing food and of doing so. Nothing could be further tains and valleys. It is a region where wood fiber that all Americans need and from the truth. In fact, Oregon has people earn their living from the land. use in our everyday lives. some of the toughest land use laws in But it is a region in dire economic I sometimes begin to think that we the Nation. Despite the utilization of straits. It is a region which is fighting are so removed from rural commu- forest lands for agriculture, urbaniza- for its survival. nities in our modern society that we tion, and infrastructure, 91 percent of Many States have what I term coun- think we do not need farmers because the forest land base that existed in Or- try-city divides, conflicts between there is a Safeway down the street, we egon in 1630—in the year 1630—91 per- rural and urban areas. I happen to be do not need foresters because there is a cent of that land still exists as forests the first Senator elected in Oregon who lumber yard down the street, and we and for growing trees. has lived in rural Oregon in nearly 70 forget this connection. Mr. President, the final visit of my years. I take the issues with respect to As we forget this connection, we week in eastern Oregon was to the Ione all of my State very seriously. I take begin to enact laws that shut down all High School commencement, where I the issues that affect rural Oregon very of our basic American industries of had the privilege of delivering the mining, grazing, farming, forestry, personally. graduation address. Ione is a small fishing, drilling—all of these things I would like to report to my col- community, and its class of 1998 is also that we have done that have produced leagues on the State of rural Oregon, small. There were nine graduates. Yet the rest of Oregon, today, and to invite this American standard of living. I fear as we shut these things down, nearly 500 people packed the high the President not just to go to Port- we will then lament the day when our school gymnasium on a Friday evening land but to come with me to John Day, economy takes a very serious down- to lend their support as a community to come with me to Nyssa, to come turn. And it is difficult to reverse, be- to these outstanding young people. with me to Burns, OR, and to see for As I looked at the graduates, I could cause even in this room, Mr. President, himself an area of my State that has everything around us is the product of not help but wonder what future there been terribly damaged by many of his the Earth in one way or the other. It was for those who wished to live and administration’s policies. came out of the Earth, and we bring work and raise a family in eastern Or- These are Oregonians who have made these materials into commerce to egon. Will there be jobs for them? Will their living off the land for genera- produce products. Well, we all use there be good schools for their chil- tions. They are now being forced out of them. dren? Will this administration sentence business by policies of this administra- The PRESIDING OFFICER. The time them to a future with no option but to tion. These policies are often driven by requested by the distinguished Senator move to a city, to an urban area, in emotionally generated, questionable has expired. order just to make a living? science to institute severe restrictions Mr. SMITH of Oregon. I ask unani- I returned from that trip, Mr. Presi- on agriculture, forestry, grazing, and mous consent to have an additional 5 dent, with a commitment to redouble mining on both public and private minutes, Mr. President. my efforts on behalf of the good people lands. The PRESIDING OFFICER. Without of rural Oregon and to do everything Mr. President, there are people in the objection, it is so ordered. within my power to ensure that their administration now who talk with Mr. SMITH of Oregon. For all the communities and their way of life will straight faces, without blinking, about talk of a postindustrial service econ- survive. tearing out the Columbia River dams. omy, Mr. President, people’s most Finally, the next indignity to be vis- These are assets built by the Federal basic needs are still food and shelter. ited upon rural Oregon involves the im- Government in the Second World War. Let me offer some facts and figures plementation of the Glenn amendment They were built to serve a multiple of to help put things in perspective. Elev- which now may invoke unilateral sanc- purposes. They were built to provide en of Oregon’s thirty-six counties had tions that unjustly impact our farmers. public safety from spring flooding; they double-digit unemployment in March, I think the distinguished Senator who were built to provide irrigation for ag- including Grant County with a rate of has just left the Chair has a bill, I riculture; they were provided to move nearly 20 percent, Lake County at 15 think Senator MURRAY has a bill, and I crops from country to city, the city of percent, Wallowa County at 14.4 per- have a bill to address this very issue. Portland, the Port of Portland, where cent. It is about to get much worse. Now, I know Senator GLENN and I know 40 percent of the wheat in the West For example, Mr. President, people he is a good and decent man, and I goes right through and down that river. do not like the way a clearcut looks, know his bill was designed to deter nu- They were built also to produce elec- but nature has a way of clearcutting, clear proliferation. I am all for it. It tricity. Heaven forbid, people need too. It is called a forest fire. We have didn’t work. electricity. They were built specifi- them very commonly in my part of the Now we are about to witness the in- cally to provide the production of met- world, and yet even the salvage of credible spectacle of wrestling our- als for weaponry in the Second World burnt timber is not being allowed to be selves to the ground. The government War. But now we are being told that all harvested in my State now. That is about to impose sanctions that will of these values must be subordinate to makes no sense. ultimately not hurt Pakistan because June 11, 1998 CONGRESSIONAL RECORD — SENATE S6133 the truth of the matter is our competi- I realized myself the depth of these She is one of 4 million people in my tors love this. The people that will be feelings when, only a few months, ago State of New Jersey and 50 million in hurt are the people of rural Oregon, I joined with my colleague, Congress- our country who have absolutely no Washington, Idaho and others, who will man PALLONE from New Jersey, in a protection from the judgments of their lose 40 percent of their markets to U.S. field hearing in our State. During the health maintenance organizations. sanctions on U.S. farmers that have hearing, families told me about their They live at the whim of whatever de- had no ability to deter nuclear non- own experiences in attempting to care cisions may come from the officials proliferation. for their children, gaining access to the who manage these health care organi- I hope my colleagues will look at a best health care providers, and the zations. That is true, even though I am bill which I am proud to cosponsor. It enormous frustration and feeling that very proud that in New Jersey we prob- is a bill by Senator LUGAR that has a the costs of operations were being ably have the best patient protection ‘‘stop, look, and listen’’ provision to placed before the health of their chil- system for those in managed care of this whole episode of unilateral sanc- dren. any State in the Nation. But it doesn’t tions, which in effect makes war on our Perhaps the best example came from work. State protections don’t work be- own people. I think we need to stop and a single family in New Jersey, the cause only 25 percent of those in health look at this very, very seriously. Bolingers. Their daughter, Kristin, is maintenance organizations in New Jer- Mr. President, I indicated how dev- 15 years old, and lives in Spotswood, sey can be covered by State protec- astated wheat farmers will be in the NJ. She has experienced the frustra- tions. The other 75 percent, who like rural parts of Oregon, Idaho, and Wash- tion of managed care that has been vis- Kristin Bolinger are in ERISA-based ington by the sanctions now about to ited upon many American families. As plans, are left to their own devices to be imposed by the Clinton administra- an infant, Kristin developed unex- fight their insurance companies for tion by the Arms Export Control Act. plained intractable seizures which left their rights because State protections Food aid under this act is supposed to her in need of very specialized care and cannot shield them. be exempted. It is important that cred- expensive diagnostic tests. Five years It is no wonder that more than half its and credit guarantees for export of before, Kristin’s parents had enrolled of all Americans who are enrolled in wheat also be exempted. themselves in an HMO. But because of health maintenance organizations are For that reason, I am introducing the rules of the HMO, Kristin could no significantly dissatisfied with the qual- legislation this morning to exempt longer see the pediatricians and the ity of their care. credit guarantees from any sanctions specialists who had been treating her Fifty-one percent of Americans be- to be imposed. for her entire life. Those who had the lieve that health maintenance organi- The PRESIDING OFFICER (Mr. experience with Kristin, had seen her zations are eroding the quality of GREGG). The Senator from Massachu- symptoms and knew her case, were now health care for their families. Fifty- setts is recognized for 15 minutes. separated from her treatment, and in five percent fear that if they become ill Mr. KERRY. Mr. President, I thank their place the HMO on its list of avail- while in a managed health care plan, the Chair. able doctors made a pediatrician avail- those who administer their plan would (The remarks of Mr. KERRY, Mr. able who was not qualified, who had no have their highest priority in saving CLELAND and Mr. ABRAHAM pertaining experience with her condition, and did money rather than caring for their pa- to the introduction of S. 2157 are lo- not know her or how to treat her. tients. And if that is not bad enough, cated in today’s RECORD under ‘‘State- Her family then was left in an ex- the worst indication may be that this ments on Introduced Bills and Joint traordinary position. In caring for lack of confidence of those who are en- Resolutions.’’) their 15-year-old daughter, do they ab- rolled in the plan is mirrored by health Mr. CLELAND. Mr. President, I sug- sorb all of the financial costs which care professionals themselves. Forty gest the absence of a quorum. they are unable to bear when treating The PRESIDING OFFICER. The percent of all physicians who work in their child or do they go to doctors these very plans every day watching clerk will call the roll. who, on their face, were not qualified The legislative clerk proceeded to these judgments believe that the qual- to deal with the case? ity of health care and of the judgments call the roll. The family was left in a desperate fi- made by health care professionals is Mr. TORRICELLI. Mr. President, I nancial position. The HMO refused to eroding and prevent them from making ask unanimous consent that the order pay many of her medical bills deeming the best medical judgments for pa- for the quorum call be rescinded. them ‘‘not medically necessary.’’ The The PRESIDING OFFICER. Without case only gets worse. tients. objection, it is so ordered. In 1994, scoliosis, caused by Kristin’s I cannot tell you that the movement f condition, required the use of a back in America to managed health care plans has not had benefits. The truth is PATIENTS’ BILL OF RIGHTS brace. The HMO gave her a back brace which was inferior and not usable. the spiraling upward costs of health Mr. TORRICELLI. Mr. President, last Last year, Kristin had to undergo care in America are being contained. I month the Senator from Massachu- corrective spinal surgery. Her physi- do not believe we ever could have de- setts, Mr. KENNEDY, came to the floor cian prescribed home nursing care and veloped the current Federal budget sur- to urge the Republican leadership to physical therapy. For a long time the plus without managed care. It has been allow the body to consider reform of HMO refused to pay for the physical of enormous benefit to the American managed health care in our country. therapy or the home care. They would economy as corporations have con- Today, I also want to join his plea that pay for nothing. After they started to tained costs, but there is a loss of bal- this institution be allowed to consider pay, the physical therapy was only half ance. If we are achieving the control- the consequences for American fami- complete when payments stopped. ling of these costs, but the price is that lies of the managed health care system This, of course, leaves Kristin families and physicians do not have in our country. Bolinger’s family with a question that confidence they can get the care they The simple truth is health care in they will ask themselves all their lives. are purchasing, we are paying a very America is in a state of crisis—not a The bills were not being paid, the fam- high price for this efficiency. What is crisis of competence or technology. ily had to make these sacrifices in required is to restore the balance be- Most assuredly, it is a crisis of con- spite of the fact they were paying an tween the efficiencies of delivering fidence. Confidence in health care in HMO all of this time on time in full. care and ending the upward spiral of many respects is as important as the The finances aside, the Bolinger family rising health care costs, but assuring quality of the providers or the level of for the rest of their lives is left with quality and access and balance of judg- our technology. I have rarely in my life the question: How much did their child ments. seen an issue where so many Ameri- suffer, and how much of her condition The truth is this loss of balance is cans are of a similar mind with such a might have been reversed if she had not necessary. Patients should have ac- depth of concern regarding the avail- gotten the right care at the right time? cess to health care professionals who ability and quality of health care under Obviously, Mr. President, Kristin are qualified to treat their conditions the HMO system. Bolinger and her family are not alone. and not forced to accept people without S6134 CONGRESSIONAL RECORD — SENATE June 11, 1998 the proper professional credentials Bill of Rights, deals with that balance. ance by the Drug Enforcement Agency, simply because they are preferred by I urge the majority leader, Senator the DEA. As I said, last year, 700 labs health care managers in these organi- LOTT, to bring the Patients’ Bill of were taken down. This year, it looks zations. Insurance companies should Rights for managed health care reform like they may even exceed that num- not withhold the care that family phy- before the Senate. ber. sicians and specialists alike deem nec- I yield the floor. The lab sites must be cleaned up essary. If a health care professional, a The PRESIDING OFFICER. The Sen- promptly, and that is where the prob- doctor believes a certain treatment is ator from Missouri. lem comes in. The responsibility ini- necessary, as a matter of right that f tially falls on local law enforcement of- doctor’s judgment should prevail. Obvi- ficials, and the drug dealers are not METHAMPHETAMINE CHALLENGE ously, if a doctor believes that an HMO very concerned about what mess they is making the wrong judgment for the Mr. BOND. Mr. President, I rise leave with the community. Cleaning up health of an individual, there should be today to discuss a serious challenge to the waste on these sites can cost any- a fair and speedy appeals process to law enforcement, to communities, to where from $4,000 to $40,000. Our law en- someone who can make the best judg- our youth, and to the future of our forcement agencies are not funded to ment for the patient. country. do this. Our law enforcement agencies, Mr. President, this case is so obvious, Methamphetamine, as most of us in when I talked with the DEA and the it is so compelling, it comes as close to this body know, is a growing danger in local police and the local sheriffs a consensus judgment as can ever be many of our communities. We have the around Missouri, find out they have to reached in a country of this size and dubious distinction in Missouri of hav- waste valuable manpower just baby- complexity. It is at issue in every ing achieved the highest ranking in the sitting the sites, keeping people away State, in millions of American fami- number of clandestine methamphet- from these sites so they do not stumble lies, borne out by the practical experi- amine labs busted in the last year. in and get caught in one of these dan- ence of people that Senators meet Seven hundred labs were busted where gerous meth sites. every day. It is true today. It was true they were cooking up this deadly brew For that reason, I believe we should yesterday. It was true last month. It to endanger their neighbors, to threat- embark on a State-Federal partnership was true last year. en the lives and the future of our to ensure that these labs are fully I join with the Senator from Massa- young people and our adults. Meth- cleaned up and the nuisance is removed chusetts, Mr. KENNEDY, in urging that amphetamine, or crank, is a hot new immediately from local communities. this Congress this year deal with drug, and it is supposed to have a won- In the HUD–VA appropriations bill, we health maintenance organization re- derful temporary feeling. The problem have included a pilot project for $2 mil- form. There is legislation before this is it destroys the body and the minds of lion to go to our Department of Natu- Senate that is prepared. It is ready. It the users. It also, when it is prepared, ral Resources for the State of Missouri, is comprehensive. It deals with the leaves a deadly residue and threatens to institute a cleanup partnership be- issue. Senator DASCHLE’s legislation, S. explosion and fires that have injured tween the State and local law enforce- 1890, would deal with the very issues many innocent people. ment. that Kristin Bolinger had to face in her Methamphetamine dealers are the With these valuable resources, the own life. Senator DASCHLE’s Patients’ very worst kind of social predators, far State environmental expert will team Bill of Rights, consistent with the call worse than even an average drug deal- up with local law enforcement agencies of President Clinton in his State of the er, and that is saying something. They on the sites promptly and rid the town Union Address, would ensure that pa- have the same disregard for young lives of toxic waste. The State will have tients like Kristin would have (1) ac- they seek to spoil, but they also pos- funds to outfit a cleanup detail, expand cess to providers who are qualified to sess a callous indifference to the entire that detail, and equip itself to respond treat their conditions, including refer- public. Meth cookers prepare their to all corners of the State. The State rals to specialists when necessary; (2) drugs in homes, in rented apartments will also have the resources to share that any Member of a health mainte- and hotel rooms, but the meth cooking with local governments, who must nance organization, wherever they are process is a very dangerous one because move in and respond to emergency in America, wherever they travel, it produces dangerous byproducts in- cleanups, a process that could other- whatever community they are in, have cluding carcinogens and toxins and wise bankrupt many small commu- access to emergency care in a hospital combustible gases. While it is being nities. that is proximate to them when they cooked, it is highly explosive. On a broader basis, we recognize this are in trouble or in need; (3) have ac- I have talked with law enforcement problem is a nationwide problem. In cess to a fair and immediate appeals officers who go in who have to use low- the Superfund measure that has been process. powered flashlights because a really reported out of the Environment and More than anything else, this would hot flashlight could set off a sponta- Public Works Committee, that I hope convince the American people that neous combustion in a meth lab. I have this body will be able to take up, we their interests and the needs of their seen the pictures of young children provided that brownfields money can families are being put before the prof- who have been on cooking sites with be used for toxic waste cleanups of its of these organizations. It is obvi- their parents or care givers when the methamphetamine sites because, in ously too late to deal with Kristin mess caught fire and burned them hor- fact, they are toxic waste sites and, in Bolinger’s pain or the terrible financial ribly. The aftermath of the process is a essence, may be more dangerous than plight of her family. Kristin’s experi- mini toxic waste site. The waste sites many of the sites already classified as ence and those of millions of other litter my State of Missouri. toxic waste sites. Americans can be instructive to this Despite the danger, law enforcement What happens when one of these sites Senate and remind us of our obliga- officers in my home State continue becomes a site for cooking meth is tions to deal with the problems of their heroic effort every day to bring deadly. The meth labs can blow up— health care in America. We can still more of these labs down. They are cur- blow the front off the building. If they acknowledge the enormous efficiencies rently outgunned because the meth- are in a motel, people innocently tak- of managed care and its benefits of end- amphetamine production and sales ing a room in the adjacent room may ing the rising costs, helping with cor- have been spreading. The problem is se- find themselves victims of a blast. But porate efficiency and the predictability vere, and many of the lab sites are so whoever comes on a site, a meth- of health care costs. But simply be- dangerous that local law enforcement amphetamine site, after cooking has cause these organizations are working agencies cannot handle the responsibil- occurred there, is in a very dangerous to add efficiency, does not attest to the ity alone. position. fact that all families are being treated We have been very gratified that We need to crack down to the fullest fairly as demonstrated by Kristin many of the local police agencies and extent of the law on these predators, Bolinger’s experience. Senator law enforcement agencies in my State but until we win that war we must pro- DASCHLE’s legislation, his Patients’ have been provided invaluable assist- tect our community. This effort will go June 11, 1998 CONGRESSIONAL RECORD — SENATE S6135 a long way toward helping our law en- behind in his decision to impose sanc- people will turn to nations that are not forcement fulfill that responsibility. tions was designed not to punish other criticizing their actions for their im- I yield the floor. nations for flexing their nuclear mus- ports. Airbus and Canadian or Aus- Mr. GORTON. Mr. President, I ask cle, but to deter them from entering tralian grain farmers will benefit from unanimous consent for 10 minutes in the nuclear club. As David E. Sanger U.S. actions, while Boeing and U.S. morning business. wrote in The New York Times on May farmers will be left out in the cold. The PRESIDING OFFICER. Without 24, ‘‘passionate national causes—par- The President must take action now objection, it is so ordered. ticularly the urge for self-sufficiency— to resolve the situation in South Asia f almost always trump economic ration- and end the sanctions. If he does not, ality.’’ Mr. Sanger goes on to say, wise- the American people will suffer the U.S. FOREIGN POLICY ly, that ‘‘unilateral sanctions almost consequences of his mistakes for a long Mr. GORTON. Last week, Mr. Presi- never work—precisely because they are time. dent, Secretary of State Madeleine unilateral. In a global economy, there Mr. President, I suggest the absence Albright traveled to Geneva to meet are too many producers of almost ev- of a quorum. with the other permanent members of erything.’’ The PRESIDING OFFICER. The the U.N. Security Council. The purpose The President has told the American clerk will call the roll. of her meeting was to convince the people that he has no choice but to im- The legislative clerk proceeded to world’s declared nuclear powers to join pose the sanctions, claiming that they call the roll. the United States in condemning India are required under the Nuclear Pro- Mr. BREAUX. Mr. President, I ask and Pakistan for their recent nuclear liferation Prevention Act of 1994. What unanimous consent that the order for tests and somehow to prevent an arms he doesn’t say is that Sections 102 the quorum call be rescinded. race from escalating in South Asia. To (b)(4) and (5) of that law provide the The PRESIDING OFFICER (Mr. no one’s surprise but her own and President authority to waive the sanc- SMITH of Oregon). Without objection, it President Clinton’s, no agreement was tions in whole or in part if he uses the is so ordered reached. 30 day delay allowed him before impos- Mr. BREAUX. I ask unanimous con- The foreign policy of the United ing the sanctions. The President did sent to be recognized for 10 minutes in States in the Clinton Administration not use the 30 day delay. The reason for morning business. has now come down to this. In dealing his rush to impose sanctions is clear. The PRESIDING OFFICER. Without with the People’s Republic of China, a The President has no other solution. objection, it is so ordered. country with a developing internal free But unilateral sanctions do little to f produce results. Instead, they harm market, but repressive of any political TOBACCO LEGISLATION dissent, with systematic restrictions U.S. workers, farmers, and families. against competitive American prod- My home state of Washington has a lot Mr. BREAUX. Mr. President, we are ucts, and a blind eye toward billions of at stake in this international dispute. in the middle of the debate on the so- dollars of intellectual property piracy, In 1996, Washington exports to India to- called tobacco legislation which has we not only don’t defend the victims of taled $429.39 million and India was the been ongoing for a number of days. I these practices, we generously supply state’s fourteenth largest export mar- think that it is appropriate to pause the PRC with missile technology that ket. Boeing airplane sales to India to- for a moment and to consider where we allows it to increase in its already im- taled $372.8 million in 1996 and ac- are and where we have been and to try mense threat to its neighbors. counted for a large majority of overall to come up with an idea of where this The Clinton Administration gives Washington state exports to that coun- debate is likely to go. Because I think ‘‘Most Favored Nation’’ treatment for try. Most of the planes India purchases that with all the debate and discussion China a whole new meaning. What it from Boeing are financed by the Ex- we have had, there is some confusion as means now is, what China wants, China port-Import Bank. If the President cuts to exactly what has been happening. gets—even an American president to be off Ex-Im Bank loans to India, Boeing, I think it is very important to recog- greeted on Tiananmen Square, insult- and Washington state’s economy will nize that in order to know where you ing the memory of its martyrs. feel a major strain. are going, it is also important to actu- And then we are surprised when India Washington is the largest producer of ally know from where you started. I tests nuclear weapons, joining a club soft white wheat, Pakistan’s grain of think if you look at where we started, we founded fifty years ago. We react by choice. Pakistan is the largest market Congress became involved in this to- sanctioning—unilaterally—the world’s for Washington state wheat exports. bacco legislation really as a result of most populous democracy. And we fol- During Fiscal Year 1997, Pakistan attorneys general litigation on behalf low up by imposing the same sanctions purchased 2 million metric tons of soft of all the various States trying to re- on Pakistan, a long time ally, for a white wheat from the Pacific North- cover money for the States’ Medicaid natural and justified reaction to In- west—32 percent of total soft white programs, which had suffered a loss be- dia’s tests. wheat exports from the region. So far cause of payments for people who had As Charles Krauthammer so elo- in FY 1998, Pakistan has purchased 2.14 suffered disease and injury because of quently put it in his column in Fri- million metric tons of soft white smoking-related activities. day’s Washington Post, the President: wheat—37 percent of total wheat ex- When it comes to this issue, I want ports from the region, with purchases to make one point very, very clear. I do .. . is guilty of more than mere fatuousness, not think any of us need to be lectured however, in dealing with the India-Pakistan from Washington totaling $140 million. nuclear arms race,. He is guilty of fueling it. While American farmers and manu- to about the problem that is facing us. While for years his administration has facturers stand today at risk of losing All of us have examples and instances claimed deep concern about proliferation, these important markets, their coun- in our own lives that make the prob- [he] has shamelessly courted the world’s terparts in Canada, Europe, and Aus- lems associated with cigarette smok- worst proliferator of weapons of mass de- tralia are celebrating the shortsighted- ing and the tobacco industry very, very struction: China. ness of the U.S. Administration. For clear. In my own family, my mother Not only is the administration in the U.S. sanctions are better for their died of lung cancer—lung cancer that large part to blame for the current cri- businesses than the most ingenious of was clearly and directly related to sis, but is now taking steps to ensure marketing campaigns. They are happy years of tobacco use. In addition, my that our economy will suffer together to step in and fill the place of Amer- father-in-law died of lung cancer and with our national security. The Presi- ican exporters in India and Pakistan. tumors related clearly to smoking and dent has decided to impose harsh eco- Mr. President, if the U.S. is the only exposure, probably at the same time, nomic sanctions on both India and country imposing sanctions on India to asbestos. Pakistan. and Pakistan for actions strongly sup- Probably each Member of this body It has already been made alarmingly ported by a large majority of their peo- and also the other body has similar clear that unilateral sanctions do not ple, then the Indian and Pakistani gov- stories they can relate that personally work. For the law the President stands ernments and the Indian and Pakistani affect them in their approach to this S6136 CONGRESSIONAL RECORD — SENATE June 11, 1998 legislation. You simply cannot divorce That had never been done before in tising. This agreement spelled out it. People are affected for a lifetime by the history of this country, where you some other things. We talked about it; personal experiences, and mine are not set absolute targets that companies that is, banning all outdoor tobacco any different from probably many of agreed to and suffered penalties if they product advertising, as in stadiums; my colleagues’. So when I approach did not meet those targets, which were and for indoor facilities directed out- this issue, it is with the intent of want- substantial. doors. It bans the human images, ing to do something to reduce underage It also said, on advertising and mar- again, like the cartoon characters of smoking in this country. keting, that tobacco advertising would Joe Camel and the Marlboro Man. No In order to determine where we are be banned on billboards, in store pro- more advertising on the Internet. It going, it is important to look where we motions, and displays over the Inter- limits point-of-sale advertising to started. The June 20 agreement was the net. No more Marlboro Man, no more black-on-white. All of these things that baseline. It was the agreement the at- cartoon characters like Joe Camel. To- no one has ever been able to accom- torneys general of this Nation, who de- bacco would also be banned from spon- plish was agreed to by the lawyers, serve a great deal of credit, were able soring all sporting events. No more agreed to by the defendants, agreed to to reach as a result of litigation in the race car events, no more race track by the tobacco companies as part of courts of America against the tobacco events, no more anything from a sport- the settlement agreement. companies of America. That settle- ing standpoint at which they would be In addition to that, we also have ment that was immense in what it did. able to sell or advertise. No more youth-access restrictions. Retailers are It was immense in the proportions of clothing, no more baseball caps, no prohibited from selling cigarettes or good that it did. I would like to outline more jackets, none of that would have smokeless tobacco to children under 18, it for a moment to show where we been allowed under this agreement. To- and all of the things they have to do started. bacco companies agreed to that. Com- under a youth-access restriction pro- That June 20 agreement would have panies agreed to the targets; companies gram. settled the lawsuits brought by all 40 agreed to the FDA regulation; compa- The point that I make is that all of States. It would have settled them. The nies agreed to pay $368.5 billion. this is part of their agreement. I am States would have been compensated in Also, the warning labels were strong- concerned that what we have done is to their State Medicaid programs for er than ever. Like, ‘‘Smoking can kill take this agreement, which no one funds that they spent to treat smokers. you.’’ Can you get it any stronger than would have thought possible 5 years That is what the States wanted. It af- that? You read that and still want to ago, 4 years ago, and have turned it fected literally millions of people. do it? Is there something loose some- into an attempt to make a Christmas In addition, it would have settled all where in your head? That was going to tree, to take care of all kinds of addi- of the individual lawsuits around this be part of it. tional items, increase the amount ev- country, and people would have been It includes substantial restrictions erywhere you possibly can. I under- compensated as a result of that settle- on youth access to cigarettes; a ban on stand that. ment. In addition, it provided funds to cigarettes being sold from vending ma- It is a race to see who can be the cover the costs of implementing and chines unless they are adult-only fa- toughest on tobacco companies, and I enforcing several public health pro- cilities; minimum standards for retail- understand that, too. My concern is, in grams related to solving the problems ers. All of that was in there. our race to be the toughest, that we of underage tobacco use and also to try If you had said this was possible to will lose all of the things that I have to find ways to cure diseases caused by have 5 years ago, they would have just outlined. Because I am absolutely smoking. looked at you and said, ‘‘No way. You convinced, from testimony in the Com- The tobacco companies, under that can’t get that done.’’ But that is all merce Committee, that those restric- agreement, would have paid $368.5 bil- part of the agreement. That is where tions on marketing and advertising lion, not including the attorneys’ fees, we started. that are in the current legislation, over a 25-year period. Payments at the I would just like to talk about some without the companies agreeing to it, rate of $15 billion per year would have things that I think are part of this is not going to be constitutionally continued forever. agreement that are not going to be upheld by the courts of this country— It is important for us to note that for able to be accomplished if we do not will not be. We cannot restrict adver- the previous 40 years there was not an have an agreement that includes the tising to adults. We cannot restrict ad- individual in this country who ever put companies. vertising of legal products to adults a nickel in their pocket as a result of Marketing and advertising restric- that only incidentally affect children. litigation against tobacco companies. tions under this agreement took every- The court cases are very, very clear So to say that you get $368 billion-plus thing that the FDA wanted to have with regard to what we can do and can- to cover the costs of individual suits, done and said, it is part of the agree- not do. The first amendment applies, and to use those moneys for health pro- ment. It bans nontobacco brand names yes, even to tobacco products, as long grams, is monumental in what it or logos on tobacco products. It bans as they are legal, and no one is yet say- achieved because no one had ever tobacco brand names, logos and selling ing we will outlaw tobacco products walked off with a nickel in their pock- messages on nontobacco merchandise, like we tried to outlaw alcohol. et as a result of that litigation. This i.e., the T-shirts, baseball caps, jack- I am concerned that as we increase settlement did that. ets; no more of that. everything that we are increasing, we It also did something that the FDA It bans the sponsorship, as I said, of lose the company’s participation in was never able to do. It said in the all sporting and cultural events in the this effort, and we are going to end up agreement that the FDA would regu- name, logo or selling message of a to- with something that may make us feel late tobacco products under the Food, bacco product brand. It restricts to- good temporarily but will not get the Drug and Cosmetic Act, and the FDA bacco advertising to black text on job done. An analogy is of the little would have the authority to reduce white background only, like this chart. boy who puts his hand in the cookie jar nicotine levels in those products. It requires tobacco advertising to have and tries to take all the cookies out of It also said we are going to set some a statement, ‘‘Nicotine delivery de- the jar; he has so many in his hand, he goals, and the goals are going to be vice.’’ It bans offers of nontobacco can’t get anything out. that you would have to show a 30-per- items or gifts based on the proof of pur- We went from the base of $368.5 bil- cent decline in cigarette and smokeless chasing a cigarette product. All gone. lion from the settlement; we increased tobacco use by minors within 5 years That is all what the FDA would like to that with a tax of $1.10, so now it is —a 30-percent reduction—a 50-percent have done, which, incidentally, is being $574.5 billion. Then after we added to reduction within 7 years; and a 60-per- litigated. Companies accepted that as the base payments, we also added the cent reduction within 10 years. If not part of that settlement agreement. look-back provisions. The look-back successful, penalties would be assessed It also said, we are going to do a lot was the penalty for companies that against the companies of up to $2 bil- more than that beyond what FDA didn’t meet the targets I talked about. lion a year. wanted to do on marketing and adver- The June 20 agreement had penalties. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6137

The Commerce bill raised the penalty derstand, and Senator FEINSTEIN and they have sent a letter to Congressman potential to $706 billion. Floor amend- others on our side are working to- ARMEY asking for a meeting on these ments raised it to $810 billion on the gether to take what people thought critically important issues. They are look-back. was impossible and pass it. supported, in a separate letter, by a I think that is questionable constitu- Let’s get out of the cookie jar. Let’s number of groups who represent per- tionally. I think it is questionable get back to reality. Let’s do something sons with disabilities, mental illness whether you can say to a company, you that will pass, that will work, and that and HIV/AIDS, and other organizations have to do all kind of things, but if you will make good sense. that rely regularly on trained and de- do all those things and still don’t meet I yield the floor. voted health care professionals. the targets we will penalize you. I f These issues matter a great deal to think it is questionable constitu- families across the country. Too often PATIENTS’ BILL OF RIGHTS tionally for the ability to do that un- today, managed care is mismanaged less the companies agree to it. I think Mr. KENNEDY. Mr. President, I am care. In state after state across the what we are doing is penalizing compa- deeply concerned about the continuing country, patients are paying for these nies without any fault on their part. lack of commitment by the Republican industry abuses with their lives. We are saying, do all of these things, Leadership to schedule floor debate on Just ask Frances Jennings of Ando- but if you don’t reach these targets we legislation to end abuses by health in- ver, Massachusetts. In November, 1992, are going to hit you with $810 billion surance managed care plans. Today, at the age of 57, her husband Jack was worth of penalties. They can agree to more than 100 groups have sent a letter diagnosed with mild emphysema by his that; but if they don’t agree to it, I to Senator LOTT and Speaker GINGRICH pulmonologist. A few years later, in doubt whether it will pass constitu- asking for quick, full and fair floor March, 1997, Mr. Jennings was hospital- tional muster. consideration of this legislation, which ized for a pneumothorax, which can I think the marketing and advertis- is called the Patients’ Bill of Rights. lead to a collapsed lung. His physician, ing restrictions happen to be the most These groups represent millions of pa- Dr. Newsome, determined that a lung important thing we can do in order to tients, doctors, nurses, therapists, and reduction procedure would improve get teens to stop smoking. The $1.10 is working families. Jack’s health and overall quality of not going to do it. Kids pay $100 for a Yet, in a memo sent to all Senators life. pair of sneakers. Do you think $1.10 and in recent floor statements, it ap- Two months later, in May, 1997, will get that many to quit smoking pears that our patient protection legis- Jack’s condition was stable enough for when they are paying $100 for a pair of lation—the Patients’ Bill of Rights—is the operation, and he was referred to tennis shoes? I doubt it. Marketing and not even on the Republican Leader’s Dr. Sugerbaker, a top surgeon who spe- advertising restrictions are very im- radar screen. It is not on the list of pri- cialized in the procedure. portant—probably not constitutional. orities designated by the Republican But in late May, Jack’s insurance The look-back provisions: Sounds Leadership to be taken up this month, plan—U.S. HealthCare—denied his re- good. Let’s make it as high as we can. or even this session. I have here a list ferral to the specialist. Frances and If the companies don’t agree, I question of more than 20 bills, ranging from reg- Jack were disappointed that the plan whether that is constitutional. ular appropriations bills and reauthor- refused to authorize the referral, and Look what we did when you add it ization bills to the nuclear waste dis- they requested a referral for consulta- up. The base payments were increased, posal legislation and a constitutional tion with a plan-approved physician. the look-back provisions, and now the amendment on flag burning. This appointment was finally sched- judgments. We used to have a $5 billion But, I have yet to see any interest uled for June 12. But, on June 11, the annual cap for liability payments. This from the Republican Leadership in tak- new doctor’s office called Jack to can- is for future suits. People say we are ing action to ensure that medical deci- cel his appointment, stating that the giving them all kinds of limitations on sions are made by treating physicians, physician no longer accepted patients liability. Individuals can still sue in and not by insurance company ac- from the health plan. the future, can still have criminal ac- countants. And I have yet to see any Immediately following this cancella- tions against companies in the future, interest from the Republican Leader- tion, Jack’s primary care physician— under the agreement. You can still ship in curbing abusive activities by Dr. Newsome—contacted the health have punitive damages in the future for the worst plans and insurance compa- plan to obtain yet another referral. On companies who do wrong, and inten- nies that are dedicated to their profits, June 18, a new appointment was con- tionally do it, but what we have done— not their patients. Instead, it appears firmed for mid-July, four months after we have gone from adding an increase that, by this inaction, the Republican his initial hospitalization. in base payments, increased the look- Leadership is interested only in defend- Tragically, Jack Jennings never had back penalties, and took the cap off ing the indefensible, the status quo. the opportunity to benefit from the any annual limitations on future pay- In addition, the House Republican procedure recommended by his doctor. ments. We have gone from $435 billion Leader, DICK ARMEY, recently lashed Jack had been having trouble breath- to $906.4 billion, and now we add it up out at doctors, nurses and other health ing, despite his continuous use of oxy- and there is no limit. Why would a care professionals by grossly misinter- gen, and had been hospitalized at the company agree to all of those market- preting and distorting a provision in end of June. During this hospitaliza- ing and advertising restrictions, agree the Patients’ Bill of Rights that allows tion, they discovered a fast growing to all these look-back penalties and health care professionals to support cancer in his chest. Lung surgery was targets that they have to meet, and get their patients in appeals procedures, out of the question, and it was too late nothing in return? and to report concerns about the qual- for chemotherapy to be effective. I am not arguing their case. I made it ity of care without fear of retaliation. Mr. Jennings died on July 10—four very clear where I come from in the be- These are reasonable patient-oriented days before his long-awaited appoint- ginning. An agreement, unless it is protections. Congressman ARMEY’S ment with the specialist. In fact, this comprehensive, an agreement, unless misguided effort offends and impugns appointment would have been with Dr. everybody is involved in it, is an agree- the character and professionalism of Sugarbaker’s group, the same physi- ment on paper that may make us feel hundreds of thousands of nurses, doc- cian that U.S. Health Care had pre- good temporarily but is not an agree- tors and patients. vented Jack from seeing in May. ment that is going to get the job done. In fact, his harsh attack has helped This is a clear case where needed It is incredibly important that we mobilize even more organizations to health care was unnecessarily delayed, look at reality and come up with some- support the bill. Representatives LOIS with tragic implications. Timely care thing that works. I suggest that we CAPPS, CAROLYN MCCARTHY and EDDIE could have saved Jack’s life. The take the June 20 agreement as the BERNICE JOHNSON, who are former health plan’s inability or unwillingness basis, pass it, go to conference in the nurses, and nurses from communities to provide it cost him his life. House, and we can work out something around the country have rallied around Unfortunately, such abuses are far that will work. Senator HATCH, I un- the Patients’ Bill of Rights. Today, too common in managed care plans S6138 CONGRESSIONAL RECORD — SENATE June 11, 1998 today. Congressional offices are flooded the need for such patient protections and re- pointed by the speaker to make quality care with letters and calls from constitu- verse your opposition, both to this provision recommendations. Therefore, we would ap- ents who need assistance. Newspapers and to the entire Patients’ Bill of Rights. preciate meeting with those representatives tell story after story of the human Patients know that nurses and doctors have as well. Please contact Cathy Hurwit at (202) been their advocates. It remains our hope 429–5006 if you have any questions or to ar- costs of these abuses. that you and the Republican leadership will range a meeting. The Patients’ Bill of Rights will help demonstrate that you also are advocates in solve these problems, and restore con- the fight for quality care. Sincerely, fidence in the health care system. The Sincerely, Martha Baker, RN, President SEIU Local Patients’ Bill of Rights is a common AIDS Action Council; The Arc; Bazelon 1991, Miami, Florida, Candice Owley, sense solution. Nearly all of its provi- Center for Mental Health Law; Center RN, Wisconsin FNHP, President, FNHP Local 5001, Milwaukee, Wisconsin, sions were recommended by the Presi- on Disability and Health; Children and Kathy Sackman, RN, President United dential Advisory Commission on Qual- Adults with Attention Deficit Disorder (CHADD); Communications Workers of Nurses’ Association of California Po- ity in the Health Care Industry. Many mona, California, Sandra Alexander, are included in the voluntary code of America; Consumer Federation of America; Consumers Union; Epilepsy LVN, Vice President, AFSCME Local conduct for members of the American Foundation of America; Families USA; 839, Council 57, Daly City, California, Association of Health Plans, the man- Friends Committee on National Legis- Norma Amsterdam, RN, Executive Vice aged care trade association. Some of lation; Gay Men’s Health Crisis. President Registered Nurse Division the provisions are already being imple- National Association of People with 1199NY/SEIU, New York, New York, mented for federal health programs, in- AIDS; National Association of Protec- David Bailey, LPN, Director AFSCME cluding Medicare. Still others are in- tion and Advocacy Systems; National District #3, Mt. Vernon, Ohio, Sylvia cluded in model laws written by the Association of Social Workers; Na- Barial, RN, New Orleans Public National Association of Insurance tional Council of Senior Citizens; Na- Schools, School Nurse Chapter Chair, tional Multiple Sclerosis Society; Na- AFT Local 0527, New Orleans, Louisi- Commissioners. The Senate should act tional Partnership for Women and ana, Rowena Blackman-Stroud, NMS, on this important legislation, and it Families; Neighbor to Neighbor; Older SUNY-Brooklyn College of Medicine, should act now. Women’s League; San Francisco AIDS Treasurer, AFT Local 2190, Brooklyn, Mr. President, I ask unanimous con- Foundation; Summit Health Coalition; New York, Glenda Canfield, RN, SETU sent that the letters I have mentioned United Cerebral Palsy Association; Local 707, Santa Rosa, California. may be printed in the RECORD. United Church of Christ, Office for Pia Davis, Vice President, SEIU Local 73, There being no objection, the letters Church in Society. Chicago, Illinois, Carol Flynn, RN, were ordered to be printed in the Danbury FNHP, President, FNHP RECORD, as follows: JUNE 9, 1998. Local 5047, Danbury, Connecticut, Anne Hon. RICHARD K. ARMEY, JUNE 10, 1998. Goldman, RN, Federation of Nurses/ Majority Leader, House of Representatives, Hon. RICHARD K. ARMEY, UFT, Special Representative, AFT, Washington, DC. Majority Leader, House of Representatives, Local 0002, New York, New York, DEAR MAJORITY LEADER ARMEY: On behalf Rhonda Goode, RN, SEIU Local 535, Washington, DC. of over 200,000 nurses, we would like to ex- DEAR MAJORITY LEADER ARMEY: As organi- Pasadena, California, Pat Greenberg, press our deep disappointment with Your RN, SEIU Local 200A, Fayettville, New zations representing health care consumers, May 15 ‘‘Dear Colleague’’ letter accusing York, Jacqueline Himes, RN, we strongly support efforts to establish nurses and other health care workers of Philadephia Public Schools, Executive meaningful patient and quality protections. being willing to lie about quality concerns in Board Member, AFT Local 00003, Phila- We believe that an essential component of order to improve their financial status. Your delphia, Pennsylvania, Doris Lee, RN, that effort is to protect the rights of physi- letter demonstrates a profound lack of cians, nurses and other health care profes- awareness of the integrity and concerns of AFSCME Local 152, Mililani, Hawaii, sionals to speak out about quality concerns nurses as well as the problems facing pa- Bonnie Marpoe, LPN, President, without fear of retribution. While the rise of tients throughout this country. AFSCME Local 2245, Shippensburg, managed care has created strong incentives The major impetus behind the patient pro- Pennsylvania, Linda McDonald, RN to reduce costs and cut corners, many of tection bill is health care quality. An impor- Rhode Island Hospital, President, those impacts are not evident to patients. tant part of that is providing patients with FNHP Local 5098, Providence, Rhode Instead, patients need to rely on the ability accurate information and ensuring that the Island. of health care professionals to provide infor- health care professionals who treat them are Mary Lou Millar, RN, President, CHCA/ mation and advocate on their behalf. able to meet their professional and ethical NUHHCE, Wallingford, Connecticut, For that reason, we take strong exception obligations to advocate on their behalf. Carol Moore, LVN, AFSCME Local to your May 15th ‘‘Dear Colleague’’ express- Every day, nurses are confronted with situ- 1550, Houston, Texas, Sylvia Rawson, ing your opposition to H.R. 3605, the Pa- ations that place their patients in jeopardy. LPN, AFSCME Council 71, Sicklerville, tient’s Bill of Rights. First, we do not be- Insufficient numbers of nurses, the replace- New Jersey, Jan Salsich, RN, Westerly lieve that patients are served when those ment of skilled nurses with untrained per- Hospital, President FNHP Local 5075, who care for them are gagged or handcuffed, sonnel, and incentives for early discharge are Westerly, Rhode Island, Katherine unable to speak out because of contractual just a few of the problems. In some facilities, Schmidt, RN, Oregon FNHP, President, arrangements or the very real threat of re- the growing crisis in quality has forced fami- FNHP Local 5017, Portland, Oregon, taliation. This is not just a question of being lies to hire private duty nurses in order to Darla Shehy, RN, SEIU Local 1199P, informed of all available and appropriate ensure that their loved ones receive adequate Hummelstown, Pennsylvania, Diane treatment options; it is also a question of care. Sosne, RN, President, SEIU Local knowing when patient safety is the risk be- Nurses know about patient conditions and 1199NW, Seattle, Washington, Al cause of quality problems. are justifiably alarmed. Yet, nurses who Second, we strongly believe disagree with speak out risk termination, cutbacks in Thompson, RN, SEIU Local 660, Los your contentions that nurses and doctors are hours, and other forms of retaliation. The Angeles, California, Ann Twomey, RN, only seeking financial gain and would use Patients’ Bill of rights, H.R. 3605, seeks to Health Professionals and Allied Em- ‘‘good faith’’ reporting protections ‘‘to ra- protect nurses, doctors and other health care ployees, President, HPAE/FNHP, Emer- tionalize a financially motivated lie.’’ professionals who report quality problems to son, New Jersey, Nancy Yalanis, RN, Nurses and doctors across this country have their employers, public entities and private CHCA/NUHHCE 1199, Southington, Con- had the courage to challenge managed care accreditation organizations. It is an impor- necticut. and other health industry abuses, often at tant first step in improving patient condi- personal risk. Those abuses will not dis- tions. JUNE 11, 1998. appear if the health industry is allowed to Your opposition to even this limited provi- Hon. TRENT LOTT, continue using retaliatory threats to shield sion is surprising and disturbing. Your state- U.S. Senate, Washington, DC. itself from investigation. If nurses, physi- ments that this provision is motivated by fi- cians and other health care professionals are nancial considerations is an insult to every Dear Mr. Majority Leader: afraid to speak out, quality concerns will go nurse who struggles to provide the best pos- The American people want and need the unreported and problems will be ignored. If sible care to her on his patients. protection of Patients’ Bill of Rights. As this situation is allowed to continue, pa- As Congress considers legislation to im- more and more families face unreasonable prove health care quality, we would like the tients will be the real losers. barriers to getting necessary health care ap- Our organizations understand that health opportunity to meet with you to discuss our care consumers benefit when workers have views and describe the real world situation proved from health maintenance organiza- the ability to report poor quality, including nurses see every day. We understand that tions (HMOs) and other health insurance medication errors, problems created by early your views as majority Leader are likely to plans, it is clear that legislative action is discharges from hospitals, or fraud and reflect, or at least influence, those of the Re- needed. Public opinion surveys repeatedly abuse. We hope that you will come to realize publican leadership and the task force ap- show that the public’s desire for managed June 11, 1998 CONGRESSIONAL RECORD — SENATE S6139 care consumer protections is both wide and Psychology, Association of Women’s Mr. ROCKEFELLER. I ask unani- deep. Health, Obstetric and Neonatal Nurses. mous consent for the second reading of It is more than half a year since the Presi- Bazelon Center for Mental Health Law, H.R. 3978. dent’s Advisory Commission on Consumer Brain Injury Association Inc (BIA), The PRESIDING OFFICER. Is there Protection and Quality in the Health Care Center for Patient Advocacy, Center on an objection? Industry proposed, virtually unanimously, Disabilities and Health, Child Welfare the adoption of a Bill of Rights. For many Mr. MCCAIN. Mr. President, I object. League of America, Children and The PRESIDING OFFICER. The ob- months it has been clear that strong support Adults with Attention Deficit Dis- exists for the enactment of a genuine Pa- orders (CHADD), Clinical Social Work jection is heard. tients’ Bill of Rights. A number of bills in- Federation, Consumer Coalition for f cluding the Patients’ Bill of Rights Act (S. Quality Health Care, Consumer Federa- CONCLUSION OF MORNING 1890), the patients’ Access to Responsible tion of America, Corporation for the Care Act (S. 644) and others have such sup- Advancement of Psychiatry, Families BUSINESS port and demonstrate that many members USA, Family Voices, Friends Commit- The PRESIDING OFFICER (Mr. are in favor of bipartisan patient protection tee on National Legislation (Quaker), ENZI). Morning business is closed. legislation. Gay Men’s Health Crisis, Health Initia- It is therefore both troubling and puzzling f tives for Youth, Human Rights Cam- that there has been a delay in consideration paign, International Association of NATIONAL TOBACCO POLICY AND of this legislation. We believe that it is Psychological Rehabilitation Services, wrong to obstruct congressional consider- YOUTH SMOKING REDUCTION ACT League of Women Voters of the United ation of genuine patient protection legisla- The PRESIDING OFFICER. Under States, Legal Action Center, Lutheran tion. Your colleagues want such legislation. Office for Governmental Affairs of the the previous order, the Senate will now America’s families need it. And it is a viola- Evangelical Lutheran Church in Amer- resume consideration of H.R. 1415, tion of fundamental fairness, and a disserv- ica. which the clerk will report. ice to families seeking health care, for you National Alliance for the Mentally Ill, The bill clerk read as follows: to block a vote on this important legislation. We hope that you will lend your support to National Association for Rural Mental A bill (S. 1415) to reform and restructure efforts to enact genuine managed care pa- Health, National Association for the the processes by which tobacco products are tient protection legsilation—not a watered- Advancement of Orthotics and Pros- manufactured, marketed, and distributed, to down version and not one that is combined thetics (NAAOP), National Association prevent the use of tobacco products by mi- with ‘‘poison pills.’’ We urge you to schedule of Alcoholism and Drug Abuse Coun- nors, to redress the adverse health effects of quickly a full and fair debate on such legisla- selors, National Association of Devel- tobacco use, and for other purposes. tion. Protecting America’s families should opmental Disabilities Council, Na- The Senate resumed consideration of be your number one priority. We urge you to tional Association of People with the bill. act now. AIDS, National Association of Protec- Pending: tion & Advocacy Systems, National As- Sincerely, Gregg/Leahy amendment No. 2433 (to sociation of Psychiatric Treatment ACT UP Golden Gate, AIDS Action, amendment No. 2420), to modify the provi- Centers for Children, National AIDS Legal Referral Panel, AIDS Pol- sions relating to civil liability for tobacco Assication of School Psychologists, Na- icy Center for Children, Youth and manufacturers. Families, AIDS Treatment News, Alz- tional Association of Social Workers, Gregg/Leahy amendment No. 2434 (to heimer’s Association, American Acad- National Caucus and Center on Black amendment No. 2433), in the nature of a sub- emy of Child & Adolescent Psychiatry, Aged, Inc., National Citizens’ Coalition stitute. American Academy of Neurology, for Nursing Home Reform, National Gramm motion to recommit the bill to the American Academy of Physician Medi- Council for Community Behavioral Committee on Finance with instructions to cine and Rehabilitation, American As- Health, National Council on Aging; Na- report back forthwith, with amendment No. sociation for Marriage and Family tional Easter Seal Society, National 2436, to modify the provisions relating to Therapy, American Association for Education Association, National civil liability for tobacco manufacturers, and Psychosocial Rehabilitation, American Marfan Foundation, National Mental to eliminate the marriage penalty reflected Association for Respiratory Care, Health Association, National Minority in the standard deduction and to ensure the American Association of Children’s Aids Council, National Organization earned income credit takes into account the Residential Centers, American Associa- for Rare Disorders (NORD), National elimination of such penalty. tion of Pastoral Counselors, American Organization on Disability, National Daschle (for Durbin) amendment No. 2437 Association of Private Practice Psychi- Osteoporosis Foundation, National (to amendment No. 2436), relating to reduc- atrists, American Association of Uni- Parent Network on Disabilities, Na- tions in underage tobacco usage. versity Women, American Association tional Partnership for Women & Fami- The PRESIDING OFFICER. The Sen- on Mental Retardation, American lies, National Patient Advocate Foun- ator from Arizona. Board of Examiners in Clinical Social dation. Mr. MCCAIN. Mr. President, we have Work, American Cancer Society, Amer- National Therapeutic Recreation Soci- now been on this legislation for 3 ican Chiropractic Association, Amer- ety, National Women’s Law Center, weeks. We have taken some very im- ican Counseling Association, American Neighbor to Neighbor, OWL, Paralyzed portant votes, and the bill has been sig- Dental Association, American Federa- Veterans of America, Project Inform, RESOLVE, The National Infertility As- nificantly modified. I think it is time tion of Labor-Congress of Industrial for us to complete our business and do Organizations (AFL–CIO). sociation, San Francisco AIDS Founda- American Federation of State, County tion, Service Employees International so with dispatch. Obviously, if we and Municipal Employees (AFSCME), Union (SEIU), Summit Health Coali- don’t, the proponents of the status quo American Group Psychotherapy Asso- tion, United Cerebral Palsy Associa- will achieve by delay what they can’t ciation, American Lung Association, tion, United Church of Christ, Office of with a majority of votes; and that is, American Medical Association, Amer- Church in Society, Women’s AIDS Net- obviously, to kill tobacco legislation ican Medical Rehabilitation Providers work. that is aimed at saving the lives of Association, American Nurses Associa- f over 1 million children. tion, American Occupational Therapy The bill, as it has been modified, con- Association, American Protestant MEASURE READ THE FIRST tains measures of enormous benefit to Health Alliance, American Psychiatric TIME—H.R. 3978 the Nation, including vital antiuse Association, American Psychiatric Nurses Association, American Psycho- Mr. ROCKEFELLER. I ask for regu- smoking initiatives that will stop or analytic Association, American Psy- lar order of H.R. 3978, for its first read- reduce the compelling aspect of this chological Association, American Soci- ing. entire legislation—that is, the 3,000 ety for Adolescent Psychiatry, Amer- The PRESIDING OFFICER. The children a day from taking up a habit ican Society of Plastic and Reconstruc- clerk will read the bill for the first that will kill a third of them. There is tive Surgeons; American Speech-Lan- critical funding for ground-breaking guage-Hearing Association; American time. The bill clerk read as follows: health research, assistance to our Na- Therapeutic Recreation Association; tion’s veterans who suffer from smok- American Thoracic Society, Anxiety A bill (H.R. 3978) to restore provisions Disorders Association of America; Arc agreed to by the conferees to H.R. 2400, enti- ing-related illnesses, a major antidrug of the United States, Asian & Pacific tled the ‘‘Transportation Equity Act for the effort to attack the serious threat that Islander Wellness Center, Association 21st Century,’’ but not included in the con- is posed by illegal drugs, the mag- for Ambulatory Behavioral Healthcare, ference report to H.R. 2400, and for other pur- nitude and importance of which was de- Association for the Advancement of poses. scribed very effectively by the Senator S6140 CONGRESSIONAL RECORD — SENATE June 11, 1998 from Georgia, the Senator from Idaho, there is no way you can reduce teen body be surprised at that? If you spend and others. smoking; that there is nothing you can $100 million, which is what many—or This legislation contains one of the do; that raising the price of price of suppose only $50 million on advertis- largest tax decreases ever, and it elimi- cigarettes won’t work and antismoking ing, it is going to sway American pub- nates the marriage penalty for low- campaigns won’t work. lic opinion. But the effect of those and moderate-income Americans and This tax bill is big and it is getting kinds of advertising campaigns fades. achieves 100 percent deductibility of bigger. Some don’t accept—and I am The American people then focus back health insurance for self-employed in- not clear why—the view of the Centers on the problem because the problem dividuals. It provides the opportunity for Disease Control that teenage smok- will remain. And if we do nothing to to settle 36 pending State cases collec- ing is on the rise in America. I think a address it as a body, I think the Amer- tively and in a timely fashion. visit to any local high school in your ican people have every reason to be less I argue that those provisions which I State or district might indicate that than pleased at our performance at ad- just described—research, veterans, tax teenage smoking is on the rise. But, dressing what I believe most Ameri- cut, attacking the problem of illegal more important, people whose statis- cans correctly view as a very impor- drugs, and settling pending legisla- tics on these public health issues that tant issue, which is—obviously, we tion—I believe have made this legisla- were unchallenged are now being chal- have stated many times —our children. tion far more important than it was lenged as to whether teenage smoking So I think it is important that we when it was introduced. is on the rise or not. I think the burden recognize that we are now ending the We all know that the time is to finish of proof is on those who disagree to third week of considering this legisla- the business and move the process for- prove that these statistics are wrong, tion, and we are going to have to either ward. I think it is also clear for anyone given the credibility of the organiza- file cloture and move forward with a who has turned on the television or lis- tions who state that teenage smoking vote on it, and if the vote carries, move tened to the radio or read the news- is on the rise. If you accept the fact to a conclusion. Otherwise, I believe paper that the objective of the tobacco that teenage smoking is on the rise, that we should obviously move on to companies is to kill the legislation. I then over time there would be more other things, and with the full and cer- am sure they have come to expect a re- people who would require treatment for tain knowledge that the issue is not turn on their enormous campaign con- tobacco-related illnesses. The tax bill going away because the problem is not tributions. goes up. It is sort of elemental, but it going away. If we kill the bill, it doesn’t do any- needs to be said over and over again. If I understand that my friend from thing to stop tobacco companies from we are paying this huge tax bill to Massachusetts will have an amend- marketing to kids, it doesn’t do any- treat people as a result of tobacco-re- ment, and that an agreement has been thing to stop the death march of teen- lated illness, and it is getting bigger, made with the majority leader. I hope agers who are taking up a killer habit, then it seems to me that you have a we can reach a time agreement on that and it does nothing to promote ground- much bigger tax bill than the costs as- and then move to our side for an breaking research on new treatments sociated with this legislation. amendment. and cures for these terrible diseases, Mr. President, I believe we are reach- Mr. President, I suggest the absence including cancer and heart and lung ing a crucial point, as I mentioned ear- of a quorum. disease. We will not take a step for- lier in my remarks. We are either going The PRESIDING OFFICER. The ward to stop the flow of abuse of illegal to have to invoke cloture and address clerk will call the roll. drugs, and we will do nothing to assist the germane amendments, which is The assistant legislative clerk pro- our Nation’s veterans. Inaction doesn’t still part of cloture, part of the Senate ceeded to call the roll. do anything to relieve the burden on procedures after the invocation of clo- Mr. KERRY. Mr. President, I ask the Nation’s taxpayers, a burden not ture, or we are going to have to move unanimous consent that the order for only in the form of a marriage penalty on to other things. At that point, as is the quorum call be rescinded. but in the $50 billion taxpayers have to usual, we assess winners and losers. The PRESIDING OFFICER. Without shell out to treat smoking-related dis- That is appropriate and fun here, espe- objection, it is so ordered. ease, which is almost $455 tax per cially inside the beltway. I don’t dis- Mr. KERRY. Mr. President, I will be household per year. agree with that approach. sending up an amendment shortly. As I was driving from one place to I think we ought to understand who When that amendment is called up, I another last night, I heard another one the losers will be. The losers will be the will ask unanimous consent that we of these commercials. I do want to children of America. They are the only have 11⁄2 hours—Mr. President, a small again express my appreciation to the ones who lose. Anybody else who loses change, a quick change in plan, which tobacco companies for raising my can probably survive, probably go on to is not unusual in the last 21⁄2 weeks. We name ID all over America, especially in other things, probably lead their well are going to debate this amendment. It the States of Arizona, Iowa, and New and healthy lives. But I don’t believe is our intention to debate this amend- Hampshire. So I am very appreciative that the American people will treat us ment for an hour, at which time there of almost making my name a house- kindly, nor should they, if we fail to will be a motion to table, and hopefully hold word—what kind of a household act on this issue. Is it the most impor- after we have disposed of this amend- word, obviously, is up to interpreta- tant and compelling issue that affects ment, should we be able to do so, we tion. But I just want to repeat that America today? Probably not. Crime is would proceed to the Faircloth-Ses- there are two attacks that the tobacco important, drugs are important, edu- sions-McConnell amendment on attor- companies are making on this legisla- cation is of critical importance. But do neys’ fees. tion. We polled it, and one is that it is we use that rationale to ignore this That is the current plan. We hope to a ‘‘big tax bill,’’ and the other is the problem? Is that appropriate logic? Do be able to proceed with that plan. I, issue of ‘‘contraband.’’ I have addressed we say, well, crime and education are therefore, ask that amendment No. 2541 those issues before, but I want to point far more important issues to the Amer- be called up. out again and again because the at- ican people than teenage smoking; OK, AMENDMENT NO. 2689 TO AMENDMENT NO. 2437 tacks are made again and again. Right so therefore ignore it? (Purpose: To reduce youth smoking) now, today, $50 billion per year is paid I don’t get that logic, Mr. President. Mr. KERRY. Mr. President, I with- by the taxpayers to treat tobacco-re- I was reading in some of the news- draw that request, and I send this lated illness. Mr. President, that num- papers this morning that there are amendment to the desk and I ask for ber is bound to go up. If teenage smok- polls out now that have convinced its immediate consideration. ing is going up, then the tax bill is some Americans—and perhaps in the The PRESIDING OFFICER. The going up. view of some pollsters, a majority of clerk will report. Now, you can argue, as some in the Americans—that this is a ‘‘big tax The assistant legislative clerk read tobacco companies have argued, and bill.’’ A lot of Americans believe we as follows: some of my colleagues particularly on really aren’t going to do anything The Senator from Massachusetts (Mr. this side of the aisle have argued, that about kids smoking. Why would any- KERRY), for himself, and Mr. BOND, Mr. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6141 CHAFEE, Mr. KENNEDY, Mr. DODD, Mr. complishing the purposes of the bill; So we want to assure that at least 50 WELLSTONE, Mr. JOHNSON, Mrs. BOXER, Mr. that is, principally to raise a genera- percent of the restricted funds—not the SPECTER, Ms. LANDRIEU, Mr. DURBIN, and Mr. tion of young people who are able to unrestricted but 50 percent of the al- GRAHAM proposes an amendment numbered live up to their potential, free from the ready restricted funds—will be spent on 2689 to amendment numbered 2437. grasp of what we know to be a dan- those activities that already exist Mr. KERRY. Mr. President, I ask gerous drug. within the menu of what the restricted unanimous consent that reading of the This is an effort to try to guarantee funds can spend it on. We want to guar- amendment be dispensed with. that those 3,000 children who we have antee that it will go to the after-school The PRESIDING OFFICER. Without talked about day in and day out who programs, to the early childhood devel- objection, it is so ordered. begin smoking won’t start smoking, opment, and to the child care that The amendment is as follows: and they won’t start smoking because every expert in the field will tell you At the end, add the following: there is an intervention in their lives ( ) ASSISTANCE FOR CHILDREN.—A State will make an enormous difference to that is significant and meaningful at the lives of those children. shall use not less than 50 percent of the the time that it counts. amount described in subsection (b)(2) of sec- Mr. President, let me just share with Senator BOND, I am pleased to say, tion 452 for each fiscal year to carry out ac- my colleagues an article that appeared tivities under the Child Care and Develop- comes to this amendment with consid- in the Washington Times yesterday. It erable experience in how these kinds of ment Block Grant Act of 1990 (42 U.S.C. 9858 is called ‘‘After-School Crime Busing.’’ efforts work. When he was Governor of et seq.). It is an article by Edward Flynn. In Missouri, he started the parents and Mr. KERRY. Mr. President, the fact, he is the chief of the Arlington teachers plan there. There are few peo- amendment that I am offering, to- Community Police Department. He ple in the Senate who I think speak gether with Senator BOND, Senator with as much conviction about the dif- writes: CHAFEE, Senator KENNEDY, Senator ference that it makes for young people In fact, the tobacco bill is an opportunity DODD, Senator WELLSTONE, Senator when adults are adequately involved in for Congress to take its most powerful step JOHNSON, Senator BOXER, Senator ever to fight crime—by investing half the their lives and when the kind of struc- SPECTER, Senator LANDRIEU, Senator new revenues in the child care and after- ture is available in their lives so that DURBIN, Senator GRAHAM, and others is school programs proven to prevent crime and we can make a difference when it make communities safe. a bipartisan amendment with consider- makes the most importance to those able support, I believe, both in the Sen- This chief of police says to all of us children. in the Washington Times: ate and outside of the Senate. It would In my judgment, and I think in Sen- The tobacco companies are worried about be my hope that we would be able to ator BOND’s judgment, Senator dispose of it rapidly. their bottom line. I look at crime’s bottom CHAFEE’s judgment, Senator SPECTER, line. Educational child care for young chil- Over the course of the last couple of and others who are part of this legisla- weeks we have had some very conten- dren and after-school programs for school tion, this seeks to have an impact at age kids are two of the most powerful weap- tious issues on the floor of the Senate the most direct connected level with ons to fight crime and protect our kids from regarding liability, regarding look- our young people. getting hooked on tobacco. For example: backs, the marriage penalty, and The legislation on the floor, Mr. Studies have shown that denying at-risk drugs. I won’t suggest that the drug President, currently directs that about toddlers quality educational child care may penalty didn’t have some focus with re- 40 percent of the funds that are raised multiply by up to five times the risk that spect to children. Of course it does. through the tobacco revenues be di- they will become chronic lawbreakers as But this is primarily children. This rected directly to the States over 5 adults, and by up to ten times the risk that amendment is the primary focus of this they will be delinquent at age 16. years. That is in the billions of dollars. What’s more, as a recent Rand report legislation. This amendment goes to Those billions of dollars that are di- shows, these programs actually produce sav- the core effort of how we will best get rected straight back to the States are ings to Government—primarily from lower this legislation to assist in the effort divided into two groups. Half of that criminal justice and social service expendi- to reduce our young people from smok- money is restricted to a certain set of tures— as much as four times higher than ing. That is why this amendment, I be- programs in which the States can en- their cost. lieve, has broad support. That is why gage. Half of it is completely unre- But today millions of Americans who must this amendment has been supported by work earn less than the cost of quality child stricted, as many people in the Senate care for two kids. editorials across the country. That is think it ought to be. That is so that And then it goes on to discuss the why this amendment is supported by the States can choose, on their own, availability of child care. different advocacy groups on behalf of what they think might make the most Police Chief Flynn says the follow- children across the country. difference with respect to tobacco and 1 ing: We have been debating for 2 ⁄2 weeks how they would like to spend the pro- now about the Nation’s first oppor- ceeds in an effort that, after all, the FBI data tells us that violent juvenile crime triples in the hour after the school bell tunity to try to deal comprehensively States were significantly involved in. with tobacco, and, in so doing, com- rings, and half occurs between 2 p.m. and 8 The States’ attorneys general are the p.m. The good news: After-school programs prehensively try to address the ques- ones who brought the lawsuits and can cut crime by as much as 75 percent. And tion of reducing teenage smoking. This helped significantly to put us in the po- they help kids do better in school, treat is an amendment that can directly im- sition to be able to be trying to arrive adults with respect and resolve conflicts prove the lives of our children by at a comprehensive national settle- without violence. adopting a national policy with respect ment. So that is the theory behind Unsupervised after-school hours aren’t just to tobacco and our approach to chil- prime time for juvenile crime. They’re also which those funds were distributed ap- prime time for youngsters to become crime dren that is workable, proven, and fair. propriately to the States. I believe the reason that a number of victims and for other threats to children’s However, given what has happened in health like teen sex and substance abuse. colleagues on both sides of the aisle, the last days here on the floor, where a That is what we are talking about from different political ideologies, have considerable portion of this legislation here—substance abuse, tobacco. come together on this amendment is has now been diverted to a specific tax for the very simple reason that not cut, and another considerable portion There is good evidence that after school only is it focused on children, not only supervision can cut in half the risk that kids of the legislation has seen money di- will smoke, drink or use drugs. is it about children, but it comes with rected specifically to the Coast Guard, So in addition to their proven anticrime a proven track record of making an im- or to the DEA, or to other drug-fight- impact, after-school programs—because of pact on choices that children will ing efforts, it is even more compelling the supervision they can offer while parents make. and more appropriate that at this point are at work and their positive effect on kids’ This is, frankly, not about politics. in time we seek to guarantee that some values—are powerful antismoking and anti- This is certainly not an effort to stall of those available funds are really drug programs as well. the bill. This is an effort to make this going to go to the children on those ac- Mr. President, I ask unanimous con- bill as constructively as possible a bill tivities that will most impact those sent that the full text of this article be that is really going to assist us in ac- children’s choices. printed in the RECORD. S6142 CONGRESSIONAL RECORD — SENATE June 11, 1998 There being no objection, the article health like teen sex and substance abuse. that you have ever seen. And literally was ordered to be printed in the There’s good evidence that after-school su- they said, get them hooked early, get RECORD, as follows: pervision can cut in half the risk that kids them with all these symbols, get them will smoke, drink or use drugs. with the advertising, and we won’t say [From the Washington Times, June, 10, 1998] So in addition to their proven anti-crime anything about the aftereffects because AFTER-SCHOOL CRIME BUSTING impact, after-school programs—because of the pharmacological impact, they (By Edward A. Flynn) the supervision they can offer while parents are at work, and their positive effect on kids’ said—that is the way they politely la- If you’ve been reading the huge ads the big beled getting hooked—the pharma- tobacco companies have been running re- values—are powerful anti-smoking and anti- cently, you might think tobacco legislation drug programs as well. cological impact would see to it that will cause a new American crime problem by Law enforcement leaders nationwide—from the kids continued to buy down the creating a black market in cigarettes. the Police Executive Research Forum and road. In fact, the tobacco bill is an opportunity the Major Cities Chiefs organization to the So here we have an opportunity to for Congress to take its most powerful step National District Attorneys Association and protect our children from exactly that ever to fight crime—by investing half the Fight Crime: Invest In Kids—have called on kind of predatory practice that is unac- new revenues in the child care and after- legislators this year to provide the funds so ceptable. We believe that is the com- school programs proven to prevent crime and communities can ensure all kids access to educational child care and after-school pro- pelling reason why the Senate should make communities safe. adopt this amendment. The tobacco magnates’ claims deflate grams while parents are at work. The way to do that—the one-two punch According to a January 1998 poll, 83 when you look at the facts: percent of American voters support They use grossly inflated projections of that also fights teen smoking—is by des- cigarette cost increases, as much as three ignating at least half of new federal tobacco what I just said—83 percent of Amer- times higher than the $1.25 or so the Treas- tax revenues to support child care and after- ican voters believe that tobacco legis- ury Department and most economists agree school programs. lation ought to include significant in- will be added to the price of cigarettes. This would be one of the most powerful vestments in our children. It is a bipar- They ignore protections in the bill like re- steps Congress has ever taken against crime, tisan consensus in this country that we quiring that each pack of cigarettes carry a and a tremendous investment to help Amer- ought to do that. serial number so it can be daily traced, that ica build a healthy and productive genera- Two-thirds of the Republicans who tion for the twenty-first century, decrease will probably reduce the smuggling that now were polled by Lake, Sosin and Associ- occurs between states. long-term government financial burdens like welfare and crime costs, and start saving in- ates strongly agreed that the funds While there could be some increase to from the tobacco bill ought to be in- international smuggling, the best way to nocent lives today. deal with that is to make sure a bit of to- Mr. KERRY. I will discuss some fur- vested in child care and other child- bacco revenues are left available to enforce ther evidence of why this is so vital, hood development programs that will the new law—not to eliminate tobacco pen- but let me emphasize to my colleagues make a difference as to whether or not alties that would reduce smoking, save lives what we are doing in restricting this 50 those kids would then pick up smok- and compensate taxpayers for the billions ing. percent of the already restricted fund- we’ve paid to treat health problems caused In the Philadelphia Inquirer, the edi- ing is not a new program. We are not by smoking. torial page recently praised this In fact, if Congress allocates at least half creating any new program. We are not amendment, saying, ‘‘Using tobacco of the new revenues to support educational creating any new bureaucracy. We are settlement proceeds for child care child development and after-school pro- not requiring any new line of expendi- meshes with the goal of cutting the grams, it can dramatically reduce crime, vi- ture. We are using the existing child health toll of smoking and could olence and addiction. care development block grant, and we The tobacco companies are worried about produce benefits that go far beyond employ a mechanism that both parties, that.’’ their bottom line. I look at crime’s bottom in a bipartisan fashion, have already line. Educational child care for young chil- The Deseret News in Salt Lake City, dren and after-school programs for school- accepted. UT, recognized that support for child age kids are two of the most powerful weap- This existing, successful bipartisan care programs ‘‘saves billions of tax ons to fight crime and to protect our kids program already helps States to invest dollars down the road.’’ The Syracuse from getting hooked on tobacco. For exam- in child care but not adequately. And it Herald-Journal on its editorial page, in ple: already helps this investment in early urging the Senate to pass this amend- Studies have shown that denying at-risk childhood development programs but toddlers quality educational child care may ment, said, ‘‘Let the tobacco bill do still not adequately. I believe all we some good.’’ The editors of that news- multiply by up to five times the risk that have to do is look at the example of they will become chronic law breakers as paper reminded us that ‘‘there are good adults, and by up to ten times the risk they President Bush, who signed the block reasons why tobacco revenues should will be delinquent at age 16. grant into law originally, and the bi- go into child care. Child care and de- What’s more, as a recent Rand report partisan effort of Senator HATCH and velopment block grant program, put in shows, these programs actually produce sav- Senator DODD, who pushed the Senate place during the Bush administration, ings to government—primarily from lower to make this investment a reality. simply doesn’t have enough of a budget criminal justice and social service expendi- This amendment spells out explicitly tures—as much as four times higher than to fulfill the needs of working fami- the truth that has been implicit in all lies—it wouldn’t even if $20 billion is their cost. of this debate, that children are at the But today millions of Americans who must allotted. But it would be a start.’’ And work earn less than the cost of quality child heart of the debate about tobacco in that is what these voices are telling care for two kids. Because Head Start and this country. We know—and we now us—that we ought to make the start. child care block grants don’t have the re- know it to a shocking degree because There is, in addition to broad edi- sources to help most of those who need them, we have discussed it at length on the torial support, Mr. President, the coali- parents are forced to leave their children in Senate floor—through the tobacco tion of more than 100 national, State, poor-quality care—little more than ‘‘child companies’ own memoranda, the degree and local organizations, called Child storage.’’ That damages child development, to which tobacco companies targeted Care Now, fighting for this amendment including kids’ ability to get along with oth- young children for decades. We went ers and succeed in school, and ultimately because they recognize the connection puts your family’s safety at risk. through, about a week ago, some of the between kids and smoking. And in that FBI data tells us that violent juvenile extraordinary documents that now coalition you will find the National crime triples in the hour after the school bell exist as a result of the lawsuits that Council of Churches of Christ in the rings, and half occurs between 2 p.m. and 8 show the million dollars of advertising USA, the YWCA of the USA. I have a p.m. The good news: After-school programs that researched ways in which the to- letter that I received from the children can cut crime by as much as 75 percent. And bacco companies could target young and parents of Camp Fire Boys and they help kids do better in school, treat children and, the tobacco companies Girls, 700,000 members strong, asking adults with respect, and resolve conflicts themselves acknowledged, ‘‘get them without violence. each Senator to support this amend- Unsupervised after-school hours aren’t just when they’re most vulnerable.’’ The ment because, ‘‘Children engaged in prime time for juvenile crime. They’re also language was the most shocking and constructive after-school activities are prime time for youngsters to become crime explicit statement of a kind of craven less likely to smoke.’’ These are moth- victims, and for other threats to children’s policy of how to corrupt young people ers and fathers of working families, June 11, 1998 CONGRESSIONAL RECORD — SENATE S6143 and they understand the tremendous to Senators about the early child de- I think it proves that this is an pressures and temptations of smoking, velopment component of sound deci- amendment which is based not on Re- and they have asked each and every sionmaking for our children. Among publican ideas or Democrat ideas, but Senator to support the notion that those who joined Dr. Brazelton were simply on good ideas in touch with the that is where a significant component Julius Richmond, former Surgeon Gen- mainstream view in this country. of this revenue ought to go, to give eral of the United States, and the their kids a fighting chance. Chairman of Pediatrics at Johns Hop- Under the Kerry-Bond amendment This amendment responds directly to kins University School of Medicine, states will enjoy the flexibility of the the plea of parents who desperately and Elizabeth McAnarney, the Chair- child care development block grant. seek help in the area of child care and woman of the Department of Pediatrics The truth is we would simply be articu- early childhood development to help at the University of Rochester. They lating once and for all the important keep their kids away from the ciga- tell all of us that scientific study after standard which the public health com- rettes that they know they are being scientific study shows that the brain munity and most Governors have al- exposed to during the hours when, be- development in those first years of life ready endorsed: that child care and cause they are working, because they is the most important—I quote from early childhood development are vital are compelled to be away from the the letter of Dr. Brazelton: tools in reducing the rates of children home, and because they do not have .. . for laying the foundation for adequate smoking in this country. We then leave enough money to provide adequate sup- development, which results in self-con- it to the leadership at the state and port otherwise, their kids are being ex- fidence, smart decisionmaking, and the abil- local level to meet that standard, to posed. And we have an opportunity ity to later resist destructive habits like here to help them do that. smoking. design the programs that meet the Scientific research at the University So these aren’t ideas that have been local needs in places as different and of Southern California and the School cooked up on a political basis some- diverse as Illinois, where Gov. Jim of Public Health at the University of how. These are the foremost experts in Edgar, a Republican, is experimenting Illinois shows that 13-year-olds who are the field. They are telling us if we want with child care, and Rhode Island, left home alone after school or during to raise a generation of children who where Gov. Almond has made after the day are significantly more likely are able to make these decisions, who school care an integral part of prepar- to smoke cigarettes than children who will not fall prey to the lure of tobacco, ing children in his state for the next participate in structured after-school it is vital that we invest in their capac- century. activities. But today, only one-third of ity to do so. inner-city schools offer those pro- Again, I return to their letter, and The Kerry-Bond amendment empow- grams, and, not coincidentally, it is in read directly from it: ers communities to find their own way those very inner cities where youth We urge Congress to craft a comprehensive of saving a new generation from smok- smoking rates are now rising and going program for reducing teen smoking—and to ing. We know how after school pro- ensure that such an effort includes an essen- grams like Girls Inc. of Worcester, MA the highest. tial investment in early childhood develop- The National Women’s Law Center, ment and after-school programs. You can have effectively incorporated anti- committed to protecting the rights of support a down payment on this investment smoking curriculum designed to teach women, but also committed to the eco- by voting for the Kerry-Bond amendment. their participants about the dangers of nomic security of low-income women, I think Dr. Brazelton said it best in a tobacco and equip them with the val- wrote to Senator BOND and to me in recent editorial when he said—simply— ues to resist the peer pressure to favor of this bill, because they recog- As a prescription for preventing teen smoke. I have met with the case work- nize that under the child care develop- smoking, I’d say that early childhood devel- ers from Central, MA who tell you that ment block grant today only 1 out of 10 opment and child care programs are just the ‘‘Home Instruction Program for eligible children in a low-income work- what the doctor ordered. Preschool Youngsters’’ helps parents ing family currently gets the child care We also know from police officers assistance they need. and prosecutors like Ed Flynn, Chief of and teachers join in community part- So if we are intent on reducing the Police in Arlington, Virginia, who are nerships to raise healthier kids. But in number of kids who are smoking, and if leading a fight to invest tobacco money all these communities and around the we are really worried that smoking in child care. Chief Flynn has said that country you will find that there are among high school seniors is at a 19- child care and after school programs waiting lists for the services—for the year high, and we are really worried ‘‘help kids learn the valuable skills to programs which teach kids about re- about what the Senator from Georgia become responsible adults.’’ An entire sponsible decision-making, for the said when he came to the floor and organization led by police, prosecutors, anti-smoking programs and the pro- talked about the drug problem, the and crime victims is pushing the Sen- grams which take kids off the streets marijuana increase among young peo- ate to pass this amendment because: and give them structure—and the de- ple, then it is critical we focus on the The hours from 2:00 p.m. to 8:00 p.m. are mand far exceeds our capacity to serve. 3 million young children in this coun- not only the peak hours for juvenile crime, At the Castle Square Early Child De- try who are eligible but do not get it. teen sex and teen experimentation with velopment Center in Boston, there We need to leverage the capacity of drugs, but also the hours when teens are were 67 kids in the program and 500 on every State and local community to be most likely to get hooked on tobacco. After- the waiting list. I believe it’s a moral school programs are not only our best pro- dilemma that you have 500 children able to take kids off the street corners, tection against juvenile crime, but also may where they too often cave in to peer be the most powerful anti-smoking programs there who aren’t receiving the struc- pressure and smoke each day, and put available. Being unsupervised in the after- ture they need to resist smoking, that them instead into a structured envi- noon doubles the risk that kids will smoke, today we have limited ourselves to sav- ronment that brightens their future, drink, or use drugs. ing just 67 of those kids. The Kerry- not one that jeopardizes it. It is those individuals closest to our Bond amendment can change that, by So if we are serious about reducing children who know this is the right ensuring that half of the restricted youth smoking, it is imperative that way to deal with youth smoking. funds would go to child care programs we engage now in this effort to cul- This is an amendment every Senator which can play such an important role tivate a whole generation of young peo- ought to support. in reducing youth smoking. I want to especially thank Senator ple who have the capacity to make the I return to the original premise of right decisions. MCCAIN for supporting this amend- I have a letter from Dr. T. Berry ment. In view of the pressure on Sen- this debate, the reason we are here on Brazelton of the Harvard Medical ator MCCAIN, the Senator’s support the floor of the Senate debating a bill School. Many people in America know means a lot to me. I think I can speak that a few years ago would have been him well, personally, and think of him for Senator BOND when I say we are considered too hot to handle. We are as America’s pediatrician. I would like honored to have JOHN MCCAIN by our all fortunate to have Republicans like to point out that he wrote, along with side on this fight. I also want to thank Senator BOND here in the Senate who over 50 other doctors, public health of- Senators CHAFEE, CAMPBELL, and SPEC- believe it is wrong to ignore our chil- ficials and child development experts, TER for cosponsoring this amendment. dren in this tobacco debate. I want to S6144 CONGRESSIONAL RECORD — SENATE June 11, 1998 especially thank him for his leadership learning disabilities or physical dis- Learning about a child and learning in this discussion, for his initiative in abilities early on, which could be best how important that education is, is pushing to include children in our leg- corrected at those early ages. quite an experience. Frankly, some of islation. Senator BOND has helped set a I told everybody I was going to focus the people who attacked our early tone of bipartisan cooperation and attention on early childhood develop- childhood development program, Par- along with Senator MCCAIN I think he ment. Without my direct suggestion or ents As Teachers, were accusing it of has laid the benchmark for fairness. intervention, the Director of Correc- being subversive. They thought it was KIT BOND and I believe this Senate can tions, the Missouri Department of Cor- subversive because we were encourag- find room in fair and workable tobacco rections, the man who managed all of ing government to come in and take legislation to put hundreds of thou- the prisons and the parole and proba- over the raising of children. That is not sands of children on the road to good tion efforts in Missouri, Dr. Leroy the purpose of the program. We pro- health and responsible decisionmaking. Black, on his own, came before the vided the parents the tools to be the In truth I wonder if we can really be- committee that was hearing testimony first educators of the children. lieve that fair tobacco legislation could on Parents As Teachers. We had just Guess what happened. It was subver- ignore the kids who brought us here gone on a major prison-building exer- sive in that it hooked the parents into today as one unified Senate. Let us cise in Missouri. In that 4 years of my the child’s development and well-being prove once again that the moral center second term we had increased the pris- and welfare and education. When we on spaces 88 percent. People were won- can hold in this debate and let us join are talking about discouraging chil- dering whether we could ever catch up together in passing the Kerry-Bond dren from using tobacco, and as we did with the prison population. in the amendment adopted this week, amendment. He came before that committee with The PRESIDING OFFICER. The from using drugs, from using alcohol, a very simple, straightforward mes- Chair recognizes the Senator from Mis- parental responsibility is a vitally im- sage. He said if we want to cut down on souri. portant part of that program. Mr. BOND. Mr. President, I particu- the need to keep building prisons in the We believe establishing responsibil- larly thank my distinguished colleague future, we are going to have to deal ity can best occur with assistance with early childhood development. He from Massachusetts for yielding to me. through early childhood development. said the failures in early education, the I am very pleased to join with him in Parental responsibility is very impor- failures of parental responsibility, the offering this critically important tant. Yet, there are times when parents failures of the parents to be involved— amendment. need some help. That is what the other for some care giver to make sure these Late last year, Senator KERRY and I part of this bill does. Parents today introduced legislation, which is bipar- children were getting an education, face a variety of stresses that were un- tisan legislation aimed at providing being taught responsibility—is the heard of a generation ago. Many fami- support to help families give their chil- greatest cause of the increase in crime lies with children rely on more than and the increase in prison population. dren the kind of encouragement, love, one paycheck. That doesn’t necessarily He was successful. He was a great early training and a healthy environ- mean two 9-to-5 paychecks. Many fami- help in getting this program estab- lies are working tag-team shifts or ment they need to develop their social lished on a Statewide basis. Yes, as and intellectual capacities. I have had part-time only, or own home-based Senator KERRY mentioned, we now the opportunity in my years both as businesses so one parent can always be have studies based on this program and with the children. The challenges are Governor and in the Senate to work others that show a child’s social and with children and work in the develop- tremendous and the challenges are not intellectual development is deeply going to get any easier. ment of children. I am convinced that rooted in the early interaction and many of society’s problems today—the As we all know, the most dangerous nurturing a child receives in his or her time of the day when children engage high school dropout rate, drug and to- early years and the scientific research bacco use, juvenile crime, even adult in harmful activities, such as tobacco shows that infant brain development or drug use or crime, is between the crime—can all be linked to inadequate occurs much more rapidly than pre- hours after school and before parents child care and early childhood develop- viously thought. get home from work. ment opportunities. We used to think of those cute little In an average week in America, over Let me just tell you a brief story infants, birth to 3 years old, as being 5 million children under the age of 13 about the first really broad-based early cuddly, wonderful things without much come home to an empty house. These childhood development program that going on. But brains are developing—50 are the kids who are most vulnerable we put into effect in Missouri. Our Par- percent of a child’s mature learning ca- and who engage in activities which ents As Teachers Program was de- pabilities are developed by the age of 3. may threaten their future. signed to provide assistance through They are in a very rapid mode of devel- Providing increased funding for early educating and informing and giving opment. childhood development and construc- helpful advice to parents of children Anybody who has tried to teach a tive after-school activities will serve as from birth to 3 years old—how they child to speak two languages instead of a powerful deterrent to these damaging could relate to the children, how they one language will find a very small behaviors. could establish better contact with the child—you think they would learn Ultimately, however, it is important children, how they could excite the English slowly—but they will learn an- to remember that the likelihood of a child’s curiosity, to get involved with other language, too, just as quickly, child growing up in a healthy, nurtur- reading and learning. I was having a where an adult is having a great deal of ing environment is most impacted by difficult time getting it through the difficulty trying to learn another lan- his or her parents and family. While Missouri legislature. I recommended it guage. They are in a rapid mode where government cannot and should not be- in 1981 and 1982 and 1983, and someone they can accept new inputs and they come a substitute for parents and fam- always had a reason to vote against it. are learning rapidly. ily, we can help them become stronger I never got it through. The role parents and adults play is by equipping them with the resources Finally, in my last year as Governor critical. That is when the patterns are to meet every day challenges. I said we are going to make an all-out established for the future learning of The Kerry-Bond amendment achieves push because this program is making a future responsibility of the children. I that goal. difference. We were seeing in the pilot had long said the first 3 years of life This amendment will lay the founda- projects in four school districts that was the greatest learning experience tion needed to realize meaningful re- children whose parents had been in for a child. I found when our son Sam ductions in tobacco and drug use, juve- Parents As Teachers came to school was born, that the first 3 years of his nile crime, and other social ills which ready to learn. Their parents had taken life were the fastest learning experi- plague our society. responsibility. The parents were in- ence in my life. I learned a lot more in Again, prevention is the key. Invest- volved in their education. They had de- those 3 years than I had learned in ing in early childhood development ini- veloped the pattern of involvement. many years as Governor and various tiatives and before and after school ac- The program itself identified potential offices that I had held. tivities is an important weapon in our June 11, 1998 CONGRESSIONAL RECORD — SENATE S6145 fight against our Nation’s unhealthy Santorum Smith (OR) Thompson cared for by a neighbor down the Sessions Snowe Thurmond and life-threatening activities. Shelby Stevens Warner street, or they can choose to have a The future well-being of our children Smith (NH) Thomas family member care for their child. If they wish, they can choose to enroll is too important for us to break contin- NOT VOTING—1 ually along partisan lines. I urge my their child in a child development cen- colleagues to adopt this amendment, Specter ter. But the benefits of this program and I thank my distinguished colleague AMENDMENT NO. 2689 are offered to far too few families. It is from Massachusetts for his hard work Mr. KERRY. Mr. President, I ask terribly underfunded. Only 1 out of 10 and dedication to this cause. unanimous consent Senator BINGAMAN children in America who are eligible CLOTURE MOTION and Senator KOHL be added as cospon- for child care assistance receives it. The PRESIDING OFFICER (Mr. sors to the pending amendment. That still leaves far too many families The PRESIDING OFFICER. Without without the help they need in child HAGEL). The hour of noon having ar- objection, it is so ordered. care. Full day care can easily cost rived, under rule XXII, the clerk will Mr. DODD. What is the pending busi- $4,000 to $10,000 per child per year, report the motion to invoke cloture on ness? which is equal to what some families the modified committee substitute to The PRESIDING OFFICER. The pay for college tuition plus room and S. 1415, the tobacco legislation. pending business is amendment 2689, board in a public university in Amer- The assistant legislative clerk read offered by the Senator from Massachu- ica. as follows: setts. I know concerns have been raised and CLOTURE MOTION Mr. DODD. Mr. President, I think are apt to be raised about giving any We the undersigned Senators, in accord- this is a very fine amendment. I want direction to the States in their use of ance with the provisions of rule XXII of the to commend our colleagues, Senator these funds. I would like to remind our Standing Rules of the Senate, hereby move KERRY and Senator BOND, for offering colleagues that half of the tobacco to bring to a close the debate on the modi- this amendment. I strongly support it. funds that would go to the States are fied committee substitute for S. 1415, the to- bacco legislation: This amendment is designed to invest unrestricted. These are the funds that Thomas A. Daschle, Carl Levin, Jeff Binga- in the well-being of our children in this reimburse States for their tobacco-re- man, Daniel K. Akaka, John Glenn, Tim country. It is a measure that ensures lated Medicaid expenses. Many States Johnson, Daniel K. Inouye, Dale Bumpers, that the children of our Nation will get do with this money what they will, and Ron Wyden, Mary L. Landrieu, John D. the right start for a far brighter tomor- they should be able to do so. However, Rockefeller IV, Paul S. Sarbanes, Harry row. since the other half of the funds to the Reid, Richard H. Bryan, Kent Conrad, J. As our colleagues have already dis- States represents the Federal contribu- Robert Kerrey. cussed, the amendment will earmark 50 tion, we feel we should have something CALL OF THE ROLL percent of the Federal share of the to- to say about how those dollars are The PRESIDING OFFICER. By unan- bacco funds going to the States for spent. imous consent, the quorum call under child care. Specifically, Mr. President, As this bill is currently written, the the rule is waived. these funds will be used to increase our Federal share of the money earmarked VOTE investment in child care and develop- for States would be restricted to a list The PRESIDING OFFICER. The ment block grants—a piece of legisla- of six programs. While child care is on question is, Is it the sense of the Sen- tion we were very proud to offer with the list, there is no guarantee that any ate that debate on the committee sub- my good friend from Utah, Senator of the funds would be used for that stitute amendment to S. 1415 shall be HATCH, some 8 years ago. care. There is no guarantee that child brought to a close? The yeas and nays The idea, Mr. President, is not to cre- care would get a single dime of these are required under the rule. The clerk ate here a new Federal child care pro- dollars. I think that would be unfortu- will call the roll. gram, but rather to do a better job nate, Mr. President. We have talked a The legislative clerk called the roll. with the well-established program that lot about child care, about caring for Mr. NICKLES. I announce that the enjoys wide support from our States children during this debate on tobacco. Senator from Pennsylvania (Mr. SPEC- and Governors, Republicans and Demo- We have talked a lot over the past TER) is absent because of illness. crats alike, across this Nation. weeks about things that, frankly, have The yeas and nays resulted—yeas 43, The child care and development little or nothing to do with the well- nays 56, as follows: block grant was created in 1990, as a being of children in this country. Af- partnership between the States and the fordable, accessible, high-quality child [Rollcall Vote No. 156 Leg.] Federal Government, to improve the care is about the well-being of chil- YEAS—43 availability and affordability and qual- dren. The tobacco industry has preyed Akaka Feingold Levin ity of child care. The block grant is a on America’s children —all of us agree Baucus Feinstein Lieberman Biden Glenn Mikulski very efficient and popular way of pro- on that—stunting their growth and Bingaman Graham Moseley-Braun viding States with sorely needed child stealing their futures. This amendment Boxer Harkin Moynihan care funds, and the States enjoy it. The is about turning the tide and making Breaux Hollings Murray Bryan Inouye Reed reason is because it is so flexible. Per- an investment in children and their Bumpers Johnson Reid haps most important, this is why par- families from the very beginning. Byrd Kennedy Rockefeller ents also support the program. Mr. President, experts tell us that Cleland Kerrey Sarbanes Our colleagues on the other side of the first 3 years of the life of a child Conrad Kerry Torricelli Daschle Kohl Wellstone the aisle, in some cases, raised con- are critical to brain development and Dodd Landrieu Wyden cerns during the child care debates to laying the ground for self-con- Dorgan Lautenberg that somehow our intent with this fidence—a sound foundation for a Durbin Leahy child care legislation is to limit the healthy future. Investing early in NAYS—56 ability of parents to choose how their childhood development is the best pre- Abraham DeWine Hutchison children would be cared for, that some- vention against a whole host of prob- Allard Domenici Inhofe how we would like to see the Federal lems, not the least of which is teenage Ashcroft Enzi Jeffords Government deciding how to raise smoking. Experts, again, including Bennett Faircloth Kempthorne Bond Ford Kyl them. Of course, Mr. President, this Fight Crime, Invest in Kids, an organi- Brownback Frist Lott rhetoric could not be further from the zation representing law enforcement Burns Gorton Lugar truth. officials from around the country, tell Campbell Gramm Mack Chafee Grams McCain The child care and development us time and time again that quality Coats Grassley McConnell block grant is predicated upon parental after-school activities are extremely Cochran Gregg Murkowski choice. With assistance from the block important to preventing problem be- Collins Hagel Nickles grant, parents can choose to enroll haviors and criminal activity. Sci- Coverdell Hatch Robb Craig Helms Roberts their children in church-based care, entific studies support their claims D’Amato Hutchinson Roth they can choose to have their children that nearly 5 million children left S6146 CONGRESSIONAL RECORD — SENATE June 11, 1998 home alone in the afternoon are much to raise the price of a pack of ciga- Frankly, we have an economy now in more likely to engage in at-risk behav- rettes high enough to discourage as America that depends on almost every ior, from smoking to drugs and sex many young people as possible from able-bodied person over 18 to work. If than their peers who are engaged in even starting to smoke and, frankly, people haven’t noticed, there is a work- stimulating, productive activities. discourage adults, who most certainly er shortage in America for skilled Mr. President, the Senate has an op- have a choice, from continuing a habit. work, for talented work. Our busi- portunity in the next few hours to en- It is a purposeful levy. If we could stop nesses can’t survive unless there are sure that we make a concrete commit- people from smoking by not raising the workers working. So we have to do ment to investing in the health and price of a pack of cigarettes, perhaps both. We have to work outside of the safety of America’s children. Setting we should consider that. But I am con- home. We have to be good parents to aside a specified percentage of funds— vinced, as many Members of this our children, and one way is to have funds that we have already agreed to Chamber are, that this is the best and the Government help parents who are spend for the child care needs in this most effective way, along with doing everything that they can do. One country—says to the American public counteradvertising, advertising restric- way we can do that is to help them, be that we will provide for a solid founda- tions, and other restrictions, which, in a partner with them, to find good-qual- tion for the future good health of fact, will be effective. ity child care, because investing in our America’s children. Many of my col- The question becomes, what do we do children is the best thing we can do to leagues know that I have introduced a with the proceeds generated? Because help our families, to help our country, comprehensive child care bill along it is going to fall regressively, in a to keep our economy strong, and do with 26 other colleagues, including the sense, on poorer people, I think we what is right with the proceeds of this sponsor of this amendment. This should try to get the money back to tobacco bill. So I urge all of my colleagues. I amendment is an important first step those who are going to pay the tax. We think this has great bipartisan sup- that I think we can take in making can do that in a number of ways. One port. It would be a shame to pass this good and fulfilling the promise of that way is to target a general tax relief, bill without this amendment on it and bill. Is this all we need to do? Obvi- which, as this bill moves through, I hope we can do. But another way that to fall down in our commitment to the ously not, but it is a good beginning. children and working families of our I hope that our colleagues, in consid- my colleagues have come up with is country. ering this amendment offered by Sen- targeting some of this money back to hard-working American families—in Thank you, Mr. President. ators KERRY and BOND, in a bipartisan Mr. President, I suggest the absence way, would find a way to support ex- most instances, with both parents working full time and, in some in- of a quorum. panding this block grant. It doesn’t stances, there is only one parent—to The PRESIDING OFFICER. The create any new programs. It is designed help them with the great costs they are clerk will call the roll. to give maximum flexibility to families incurring and the great challenge that The legislative clerk proceeded to across this country. It can make a they have, which is how to be good call the roll. Mr. BAUCUS. Mr. President, I ask huge difference for those parents, who workers and how to be good parents. It unanimous consent that the order for don’t have the choice about whether or is incumbent upon us to try to get not to be at home, to be able to afford the quorum call be rescinded. some of this money back to these fami- The PRESIDING OFFICER. Without that needed child care. lies that are going to pay this tax and That $10,000, as I said a moment ago, objection, it is so ordered. their children for one reason: Because Mr. BAUCUS. Mr. President, good is equivalent to the cost of a higher children were targeted by the industry. education and room and board. It is ex- afternoon. There is no question about it. They f pensive. Child care is very expensive. If were targeted by the industry. In my we can assist in the cost of that and re- opinion, they should benefit from the ENGAGING CHINA IN THE 21ST lieve the financial burden and the tre- proceeds generated in this tobacco set- CENTURY mendous anxiety the parents feel about tlement. To leave the children out and Mr. BAUCUS. Mr. President, I rise wondering where their child is as they not specifically designate a portion for today to address the upcoming summit must work, then, in addition to doing them, even though they are going to in China and to stress the importance something about reducing smoking get some benefit from their research of this visit to U.S.-China relations. among young people in this bill, that that is done, would be a shame. It still Mr. President, as the age old adage will be amplified by providing assist- gives States discretion about how they says, ‘‘A journey of a thousand miles ance to these families and seeing to it would like to spend a part of the begins with a single step.’’ We should that their child care needs are going to money coming in. But it says that we begin this journey with the first step— be met, or at least it will take a sig- want you to use at least 50 percent of by defining our goals in Asia, and, nificant step in meeting those needs. I your restricted funds to support child more directly, in China. commend my colleagues for offering initiatives, child care particularly, and America’s goals are simple: we want this amendment and urge colleagues to to improve the quality of child care. peace; we want prosperity and fair support it. Because children were targeted, they trade; and we want a decent world to I yield the floor. should benefit. Because families who live in. Ms. LANDRIEU addressed the Chair. are paying the tax—poor families pri- How do we achieve these goals? First, The PRESIDING OFFICER. The Sen- marily, lower-income families—this by guaranteeing peace and stability in ator from Louisiana is recognized. amendment targets this benefit to the Pacific. That means preserving our Ms. LANDRIEU. Mr. President, I join them and allows them to get acces- permanent military presence in Asia. my colleague, Senator DODD from Con- sible, affordable, and quality child Remaining committed to our alliances necticut, and commend him, Senator care. with Japan, Korea and Southeast Asia. BOND, and Senator KERRY for offering Let me say one other thing that in Defining our interests clearly to China. this very important amendment to this some way angers me as a working mom But it also means preventing unnec- very important bill. I want to say a few myself. Some people would like to essary conflicts. And to do that we words, if I could, as a supporter. maybe make judgments about families must find common ground. Remain en- The issue that has been most conten- that choose to work, or parents outside gaged. Preserve and foster our working tious about this tobacco legislation has of the home, or inside of the home. I relationship with China. We must build been how do we really stop people— would like to say maybe ideally it and strengthen our diplomatic ties. children, adults and young people— would be great for every child in Amer- In many ways China remains a chal- from smoking? We have debated that. ica to have two parents, and perhaps it lenge—a great wall in and of itself. Its Many of us feel like the best way, the would be ideal if one of those parents intransigence in many areas of trade, surest way to stop people from smok- would stay home full time. But this is human rights and arms proliferation ing, from using a dangerous product not an ideal world; this is a world presents a clear challenge for U.S. pol- that has now been proven beyond a where families have to make tough icy. Whether the topic is pirated soft- shadow of a doubt to be dangerous, is choices. ware or the incarceration of political June 11, 1998 CONGRESSIONAL RECORD — SENATE S6147 prisoners, China has often proved un- this relationship. So while we must tate the process of other countries willing to adopt practices that the rest treat Taiwan policy with great care, launching ICBMs does not make any of the world perceives as reasonable our historic policy, based on commit- sense. and just. And when China behaves con- ments to Taiwan’s security through However, the controversy over this trary to accepted norms, or to the rule the Taiwan Relations Act, and our question indicates the large emerging of law, we must not look the other commitments to acknowledge China’s question of a proper approach to the way. view of sovereignty under our three rapid advance of technology from mili- But we also must not fail to recog- Joint Communiques, remains sound tary to commercial fields. This is the nize China’s importance to the United today. And the events of the past few basic question not only in satellite States and the rest of the world. And to years show that. China has made its launches but in software encryption, engage China, we must understand point about how seriously it views technology exports and many other China. This is a vast and old nation. independence in the crisis of 1996; and issues. Our country needs a strategic When Kublai Khan conquered southern former Secretary Perry made our point approach to the entire question, and China in 1279, he presided over the larg- about Chinese threats of military the time to begin is now. With respect est empire the world had ever seen. force. to the specific question of satellite And at that time the Chinese empire Today the situation has calmed. Tai- launches, if oversight was weak, we was already 1,500 years old, and Chi- wan and China are beginning to talk should strengthen our policy. If any nese history 2,500 years old. Today’s once again. And we can, with caution American companies broke the law People’s Republic of China is the and foresight from all three sides, ex- they should be punished. But derailing world’s most populous nation, account- pect if not reconciliation, at least sta- potential progress in U.S.-China rela- ing for one-fifth of humanity; a nuclear bility in the Taiwan Strait. We need tions does not improve the situation power; and one of the world’s fastest- make no major changes, and in par- one iota. growing economies. ticular should avoid deals at Taiwan’s The second thing we need is a fair, It is also a diverse nation. China is a expense as relations with China im- mutually beneficial economic relation- mosaic of language, religion and cul- prove. ship. And that begins with the most ur- ture. The majority of its 1.2 billion For us, the division of the Korean Pe- gent question—the Asian financial cri- population are Han. The remaining 70 ninsula, and the continuing threat sis. million people belong to 55 different posed by the 1.2-million-man North Ko- I think China’s performance—along ethnic minorities. China has eight rean Army just above the demilitarized with that of the Hong Kong S.A.R. gov- major languages and 600 dialects. Yet zone, is equally sensitive. In fact, this ernment—during the Asian financial we often think of China as one mind, is the only issue that ever brought the crisis has been impressive. With South- one voice. China has many voices. U.S. and China to war east Asia’s currencies suffering, Chi- Those who have not traveled to And to maintain the peace, we need a na’s competing exports are under in- China may find it hard to truly grasp cooperative working relationship with tense pressure. A devaluation of the the differences in lifestyles. How many China; and on this issue we have it. yuan could ease life for many Chinese Americans today live without a tele- China is doing precisely what we hope businesses. But it would start a new phone? Many have two or more. In it will do. It offers the North Koreans panic in the currency market, just as China, one in four homes has tele- advice that only a one-time ally can Thailand, South Korea, the Philippines communications capability. And about give. It provides food aid. And it does and other Asian nations are beginning six out of ten have a radio. what it can to move the four-party to rebuild from last year’s collapse. Up The average per-capita income in talks ahead, even if that is limited to to now, China and Hong Kong have re- China is estimated at $360 to $700. Yet figuring out seating and handshake ar- mained committed to avoid devalu- it is possible that in the next century rangements that the two Koreas will ations. And if Asia recovers this year, China will become the world’s largest accept. it will be in no small part because of economy. At the same time, it will Then let us look to the spread of nu- China and Hong Kong. continue to face enormous problems of clear weapons in South Asia. This has We also need a stable bilateral trade unemployment, overpopulation, a low created an immense danger for the relationship. And the foundation for level of education, and poverty. world of a breakdown in the Non-Pro- this relationship is Most Favored Na- Now is the time for the United States liferation Treaty; an immediate danger tion Status. to help bring China into the 21st Cen- of war between India and Pakistan; and President Clinton has just put forth tury. Now is the time to engage China a new strategic question for China, as his annual request for renewal of Most with great expectations. In the areas of the Indian government has indicated Favored Nation status for the Republic weapons proliferation, Most Favored that its decision to test nuclear weap- of China. Not surprisingly, this request Nation Trading status and the World ons was due to fears about China. has been greeted with suggestions that Trade Organization. And with human China’s potential as a positive medi- the United States should use MFN as a rights and the environment. ator in South Asia cannot be underesti- tool. As a weapon, to convince China Mr. President, Secretary Albright re- mated. I remain concerned that China into making dramatic reforms. It is cently stated that ‘‘we have an abiding may have contributed to the arms race not. It is the foundation of commercial political interest in a region whose co- by aiding Pakistan in its development relations and should be left alone. operation we seek in responding to the of a nuclear device. It is incumbent on As Winston Churchill once said: ‘‘A new global threats of proliferation, ter- all nations to prevent the spread of nu- pessimist sees the difficulty in every rorism, illegal narcotics, and the deg- clear weapons, and we must hold China opportunity. An optimist sees the op- radation of our environment. And we to its signed commitments on this portunity in every difficulty.’’ Those have an abiding interest as Americans issue. Just as China worked construc- are good words to live by. I stand here in supporting democracy and respect tively to avert further spread of the re- today because I believe that we should for human rights in this, the most pop- cent Asian currency crisis, so too must use MFN as our way of helping China ulous region of the world.’’ it be expected to work towards pre- address its internal reforms while pre- Our relationship with China will be venting the further proliferation nu- paring for its accession to the World essential to all these interests. And we clear arms in Asia. Trade Organization. must begin with peace and security, be- Mr. President, before I speak about I do not believe that an open trade cause our diplomatic and security in- the issue of China and trade, let me say policy means Americans should be in- terests in China are critical to main- a few words regarding the recent flap different to human rights abuses in taining a peaceful and strategic rela- over satellite launches. China. The United States should take a tionship in Asia, as recent events in First, the concept of allowing China strong stand against serious infrac- the Taiwan Strait, South Asia and the to launch American satellites is sound. tions against workers, dissidents, Korean Peninsula show. It can be done without transferring women and children. But restrictions, China regards our Taiwan policy as technology useful for ICBMs. And to such as the denial of MFN trading sta- the most critical and sensitive issue in suggest that we would willingly facili- tus or the use of sanctions that hurt S6148 CONGRESSIONAL RECORD — SENATE June 11, 1998 Chinese people and fail to directly pun- United States for the world’s largest that is all too often denied the Chinese ish the abusers of power, do little to country to become a member of the people, but one that I view as essential encourage social reconstruction on the WTO. to that country’s political and eco- mainland. But the accession is going too slowly. nomic viability. Where ideas are sup- In fact we should do the opposite. We It is not good enough to wait for China pressed, creativity and innovation are should give China unconditional MFN to reach internal consensus on WTO lost. And we need look no further than trading status, upon China’s accession membership. We need to show China the world’s leading economy to see the to the World Trade Organization. I that the status quo is not acceptable. I importance of innovation and expres- have long promoted this process. And I believe that by engaging China, we can sion. America’s economic power is in- will do so again as we prepare for this help China’s reformers balance internal dicative of its political and economic historic summit. The extension of per- change and global opening. This does freedom and the extent to which ideas manent MFN status to China would not mean delivering WTO carte and innovation are exchanged. It is benefit both of our countries. It would blanche. Rather, the Administration true that China’s economic success in reduce uncertainty in our trade rela- and Congress should pursue a three- the last 20 years is impressive. But how tions. It would increase the chances of pronged approach to serious engage- far can innovation and growth proceed China moving to a more open economy. ment. in the absence of true freedom to carry In addition, it would ensure that the First, the United States must give out discourse and exchange ideas? The U.S. is able to benefit fully from the China a material incentive to enter the global marketplace grows increasingly economic liberalization measures that WTO. The Administration should en- competitive every day. China and the China must adopt in order to be accept- dorse, and Congress should pass, a law rest of the world stand to lose if that ed as a WTO member. to make permanent MFN status auto- great country’s people aren’t allowed Finally, we need a fair trade relation- matic when China enters the WTO. maximum ability to express, innovate ship. China’s market should be as open Second, the United States should tar- and progress. to our goods and services as we are to get China’s moral incentive to enter Finally, Mr. President, we must also theirs. And today it is not. In this case, the WTO. With our bilateral talks on engage China when it comes to envi- the numbers speak for themselves. It Taiwan’s WTO membership complete, ronmental concerns. As economies de- may be true that we have a large and the Administration should push for velop throughout the world, they use growing deficit with China. At the Taiwan’s rapid entry into the WTO, re- more fossil fuels. Of course, with in- same time, U.S. exports to China have gardless of where talks stand with creased usage often comes significant increased from $11.7 billion in 1995 to China. pollution. Nowhere is that more true $12.8 billion in 1997. In the first quarter Third, the United States must con- than in China. In the coming years, of 1998, our exports have reached $3.3 vince China that unnecessary delay in China will likely burn more fossil billion. My home state of Montana ex- entering the WTO is costly and coun- fuels, dispose of more chemical and in- ported $6.2 million worth of products to terproductive. Distribution and market dustrial waste and emit more carbon China just last year. access are just two issues that farmers dioxide than any country in the world. Furthermore, our agriculture indus- and traders want fixed. At the same As economic growth in China acceler- try relies on Asia. Ag exports to Asia time, we want to make certain that ates, demand for electricity and the constitute 40 percent of all agricultural China will be able to agree to, live with coal used to generate it will also in- exports. In the United States we and abide by a signed agreement. If crease. produce more than we could ever pos- talks remain stagnant after President Mr. President, 9 of the last 11 years sibly consume. Our agricultural pro- Clinton’s visit to China at the end of have been the warmest of the 20th cen- ducers simply cannot survive without this month, we should strongly con- tury. If the emissions from China’s bur- markets in China and the Pacific Rim. sider opening a broad market access geoning power plants are not subject to Our economic goals and China’s eco- case under Section 301 of our trade law. controls, our efforts to prevent global nomic goals are not so far apart. China It should begin with the areas where warming will be undermined. China is seeks a working market economy for China is violating our 1992 agreement. part of the problem, and should be part China’s people. We seek that as well. It should set a deadline for sanctions if of the solution. Although this is true We want a fair and open market for our they do not shape up. for all developing nations, it is espe- goods and services. Yet we continue to Let me now turn to our third goal: a cially true for China, its appetite for face the startling implications of the decent world to live in. hydrocarbons being what it is trade imbalance between the United President Clinton is right to go to States and China—our deficit is almost Tiananmen Square when he visits When I worked on the Clean Air Act $50 billion and growing. China this month. But he will also be 1990, emissions trading was proposed as British writer G.K. Chesterson once right to speak out on human rights and an alternative to inflexible, across-the- said: ‘‘Do not free a camel from the the rule of law. board efforts to control emissions. Ini- burden of his hump; you may be freeing It is a sad fact that those who would tial reports indicate that the system of him from being a camel.’’ We cannot speak out against the government are emissions trading works. I am inter- change China to make its leaders think still in danger of being imprisoned or ested in possibly applying the concept like Americans, act like Americans, subject to house arrest. Just as China on a global scale, to include developing and participate in the world market- will be expected to abide by the stand- countries such as China. place like Americans. We should accept ards of nuclear non-proliferation and Again, Mr. President, if we are to our differences. But we must insist on the WTO, it also should be expected to minimize the impact of these outputs, a minimum standard of behavior. live up to the international standards the United States must engage China We must continually push for the of human rights, beginning with the in a cooperative relationship. We must elimination of unfair trade barriers, Universal Declaration of Human do it in the areas of environmental pro- such as the phony ban on Pacific Rights. tection, international security, human Northwest wheat due to TCK smut. We Although I welcome the recent re- rights and trade. Although I agree with must encourage private investment lease of political prisoners Wang Dan the Chinese proverb that says, ‘‘It is over State-Owned Enterprises. We and Wei Jingsheng, I am disheartened better to light a candle than curse the must fight for market transparency. that they are subject to a de facto darkness,’’ I also think that the words We must insist that President Jiang exile, unable to return to their home- of that great American Henry Ford are Zemin and Premier Zhu Rongji open land because of their political activi- apropos here: ‘‘Coming together is a be- China to more U.S. imports. And the ties. Upwards of 2,000 political pris- ginning, staying together is progress, way to do that is a commercially oners remain in China, imprisoned for and working together is success.’’ Mr. meaningful accession for China to the the simple expression of their beliefs. President, the United States and China WTO. Mr. President, Americans hold free- have come together. For our benefit This is in everyone’s best interest. It dom of expression as one of their most and that of the rest of the world, let us is good for China and it is good for the cherished rights. It is a prerogative continue to work together for success. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6149 Finally, Mr. President, let me say a health services block grant, child care bled, before this amendment is going to few words about the approach I see de- under section 418 of the Social Security come to a final vote, I want to have the veloping in Congress. Act, federally funded child welfare and right to offer my alternative and give We have not covered ourselves with abuse programs under title IV–B of the the Senate, as we did on drugs, as we glory recently. We have not passed our Social Security Act, programs admin- did on taxes, two alternatives: One, do IMF replenishment. We have not istered within the State under the au- more to make the States spend the passed our UN dues. We have not thority of the Substance Abuse and money they get under the bill the way passed the Comprehensive Test Ban Mental Health Services Administration Congress and all these special interest Treaty. We have not passed fast track. under title 19 part B of the Public groups that have written this bill dic- And some have seen the recent sat- Health Service Act, the Department of tate it should be spent; or, two, rip out ellite launch controversy as an oppor- Education Dwight D. Eisenhower Pro- all the provisions of the bill relating to tunity to make points in domestic poli- fessional Development Program under mandating how the States spend the tics. title II. money and let the States spend the This is not the way a great power be- It is obvious that there is some lob- money as they choose to spend the haves. We have serious responsibilities byist somewhere who has all these pet money. in our foreign affairs—whether in peace programs and is now having the Fed- I think the Senate ought to have that and security, in economics and trade, eral Government dictate to the State choice, not a choice between a bad pro- human rights or environmental protec- of Texas and to other States in the vision and making it worse, but a tion. And we diminish our institution Union how they are supposed to spend choice between making it worse and at home, and our country abroad, if we the money that they are getting under getting rid of the whole process of tell- do not take these responsibilities seri- this tobacco settlement. ing the States how to spend their ously. If this weren’t bad enough, if this money. We have time to fix our deficiencies. weren’t outrageous enough, now Sen- I thank the Senator from Nebraska But it is not unlimited time, and as we ator KERRY and others come along and for his patience, and I yield the floor. see in South Asia; in Hong Kong; in say, ‘‘Well, this is not enough. What we Mr. KERREY addressed the Chair. Korea; events will not wait for us. So are going to do in addition to all these The PRESIDING OFFICER. The Sen- as the President makes this historic things is we are going to tell the States ator from Nebraska. trip, let us reflect a little more deeply that they have to spend half of 50% on Mr. KERREY. Mr. President, first of on ourselves, on our responsibilities, a specific program. ‘‘A State shall use all, let me say I appreciate the sugges- and on what we can do for our national, not less than 50 percent of the amount tion the Senator from Texas just made, rather than political, interest. described in subsection (b)(2) of section because I intend to do approximately Thank you, Mr. President, and I yield 452 for each fiscal year to carry out ac- the same thing, only with the entire the floor. tivities under the Child Care and De- piece of legislation. Perhaps I am the Mr. GRAMM addressed the Chair. velopment Block Grant Act.’’ only Member of the Senate who is be- The PRESIDING OFFICER (Mr. In other words, not only are we mak- coming increasingly confused about INHOFE). The Senator from Texas. ing them do all these things, but now what is in this bill. Perhaps everybody f Senator KERRY and others want to say is crystal clear. I am not. that 50 percent of the 50 percent that As I understand it, the tobacco com- NATIONAL TOBACCO POLICY AND we are forcing the states to allocate panies will be required under law to YOUTH SMOKING REDUCTION ACT has to go for this one particular use. pay into a trust fund, $15 billion in the The Senate continued with the con- Yesterday and the day before, we first year, growing to $23 billion. If I sideration of the bill. went back and forth with amendments. were to make an inquiry, I suspect, of AMENDMENT NO. 2689 Senator COVERDELL got to offer a real the managers of the bill right now as Mr. GRAMM. Mr. President, I know amendment to try to target drug use to what is in this bill, I am not sure I our dear colleague from Nebraska is among teenagers, and those who were would like the answer. here to speak, and I will try to be brief. opposed to it got to offer their sup- What we have been doing since the I do not want to hold him up, knowing posed alternative. Yesterday, I offered bill was introduced is we have been de- he has something we need to hear and an amendment to give a third of the ciding how we are going to allocate I am eager to hear it. But I want to money back to moderate-income work- that money. As I understand it, the talk just a moment about the pending ing people by repealing the marriage amendment of the Senator from Texas, amendment. penalty, and those who were opposed to which was accepted, will allocate a Let me remind my colleagues that in it got a chance to offer their alter- piece of that money for tax cuts, and this bill before us, one of the things the native. I have an amendment that will the amendment of the Senator from proponents of the bill say is good about eliminate all the restrictions in the Georgia will allocate a piece of that $15 the bill is that it transfers money to bill related to the Federal Government billion to $23 billion for antidrug ef- the States. While this bill allows attor- telling the States how to spend this forts, drugs other than nicotine. neys to be paid $92,000 an hour, while money. What the Senator from Massachu- this bill provides $18,615.55 per Native I want to make it clear I don’t intend setts and the Senator from Missouri, American who smokes for smoker to see this Kerry amendment voted on Senator BOND, have is an amendment abatement, while this bill pays farmers up or down until I have an opportunity before this body that will allocate an $21,000 an acre who are currently under to offer my alternative. My amend- additional amount for child care. What the tobacco program while allowing ment takes all these earmarks out of the Senator from Texas is saying is he them to keep their land and to con- the bill and gives the Members of the wants to have all that money undesig- tinue to farm tobacco, we are told that Senate the opportunity to decide if nated. So do I, only I believe that a at least a good thing about the bill is they want to serve in the State legisla- substantial portion of the $15 billion to that it gives money back to the States. ture and allocate State moneys, or do $23 billion needs to be allocated in as However, when you open up the bill they want to be U.S. Senators? If I unrestricted a fashion as possible to to page 201, you find that we do give wanted to tell the State of Texas how the States so that we can help people money back to the States, but only to spend money, I would have run for who choose to stop smoking stop smok- half the money can be spent by the the Texas Senate or for the Texas Leg- ing. States as they choose to spend it. Basi- islature. I didn’t run for the Texas Leg- I appreciate that many Americans do cally this bill dictates Federal man- islature. I never served in State gov- not want to stop smoking. And if they dates as to how the other half of the ernment, and I don’t want to get into have the freedom to choose, with full money has to be spent. State government now by trying to tell disclosure of what is in the substance, The bill requires that ‘‘a State shall my State how they have to spend this fine. Choose, and let the substance do use not less than 50 percent of the money. to you what it is going to do. amount received’’ for the following We can have a motion to table this However, I have approximately kinds of programs: maternal and child Kerry amendment. But, if it is not ta- 350,000 Nebraskans who smoke, and S6150 CONGRESSIONAL RECORD — SENATE June 11, 1998 they spend about $250 million a year on result of this bill’s increase in the price Most places where you buy ciga- cigarettes alone, they smoke over 100 of cigarettes and thereby decreasing rettes, they are right there in the open. million packages of cigarettes a year. the chance we have to help those indi- They are right there in the open. You My belief is, if we organize this cor- viduals who want to stop smoking not can go and buy them for a current per rectly, we can help those who choose to only become healthier but to become pack price of about $2.50. stop smoking stop. more prosperous. Again, the funds But if you want to stop smoking—as We now know that nicotine is addict- raised by this bill should be spent on we all know who have had friends who ive. That is one of the reasons the to- reducing the number of people who are have either been addicted to this sub- bacco industry was willing, on June 20, smoking in this country. In Nebraska, stance or addicted to alcohol or ad- 1997, to say that, ‘‘We will pay in $15 we should be concerned about reducing dicted to other sorts of substances, who billion a year as well as a $50 billion dollars spent on cigarettes from say are trying to get off the urge—the de- punitive damage payment.’’ Indeed the $250 to $200 million—which is a rel- sire for this substance comes back. You 37 million documents in the Minnesota atively modest though difficult goal to need much more than just an oppor- case showed far worse. achieve. And while it may not sound tunity to buy. Yesterday, as we all know, a case in like an enormous decrease, it is a quar- But go into a store, go into any store Florida was decided in the favor of an ter of a billion dollars every 5 years in your home State, and try to buy a individual. I listened to a member of into the pockets of those individuals. smoking cessation kit. No. 1, you are the jury this morning on television say So all the talk about this being a tax going to find out that it is substan- he voted to give this individual dam- increase, to me, is misleading. It takes tially more expensive than a pack of ages because the tobacco industry is us in the wrong direction, puts us on cigarettes. For lower-income people, still saying that nicotine is not addict- the slippery slope of cutting taxes in- who tend to smoke in higher percent- ive, still saying it does not produce a stead of reducing smoking. What we ages, it is a barrier. And it is especially powerful physical addiction. ought to be trying to do is cut people a barrier as I have talked to young peo- Now, back when dinosaurs roamed away from an addictive substance that, ple who say they simply do not have the Earth, I was a pharmacist. That taken as directed, would decrease their the out-of-pocket money to be able to was 1961 to 1965. I went to the Univer- chance of living a long and healthy life buy it. So it is easier for them to buy sity of Nebraska and graduated with a and decrease their chance, as well, of cigarettes. The physical environment degree in pharmacy. I was given a getting a shot at the American dream for buying smoking cessation kits in physical examination by the Govern- of having a little bit of prosperity. stores is more difficult, oftentimes ment and served time in the Navy, so I One of my friends in life is an ex- kept under lock and key. did not have a chance to practice very tremely conservative businessperson. So as I see this legislation, the origi- much. But in those days we understood He will not hire anybody who smokes. nal purpose of the legislation was to addiction. We were trained to study it. I understand that the U.S. Chamber of collect from the tobacco companies a So I am impressed with nicotine as a Commerce opposes this legislation. I fee, which started at $15 billion, and in- drug, because it crosses the blood-brain am a member of the Chamber of Com- creased to $23 billion as a result of the barrier and it is a powerful addictive merce in my business. I think they are Minnesota court decision, to help substance. It is not just habit forming; wrong. I think they have looked at this adults who want to quit, quit as well as it is as addictive, according to sci- thing only as a tax increase, because to stop young people from smoking. entists, as cocaine, as heroin, and other some are describing it as that, and That is a laudable goal—40 percent of drugs that produce such a strong phys- they are not understanding that if my underage teenagers in Nebraska ical pull on an individual that about a their employees decrease their addic- smoke; one out of three of them will month ago a former mayor of Omaha, tion to this substance, that they are die prematurely as a consequence. A Gene Leahy, a wonderful human being, healthier. And if they are healthier, very high percentage of them believe announced he is dying of lung cancer; the cost of their insurance goes down, they are going to stop, even though all and at the press conference he was their absentee rates go down. the statistics show that they do not smoking a cigarette because he can’t Everybody who has employees work- stop because they are addicted. They stop. It isn’t that he is choosing to ing for them wants their employees to do not understand the nature of addic- smoke cigarettes; he has no choice; he be as healthy as possible. The Chamber tion. They do not understand that nico- is addicted to the nicotine. of Commerce, in my judgment, and the tine is addictive. They have been told So I have 350,000 people in Nebraska National Restaurant Association are otherwise by the tobacco companies for who smoke, who spend hundreds of mil- missing the point. If there is cessation all of these years. lions of dollars a year on cigarettes. By money in this bill, I can go to Ne- So, Mr. President, I have heard the my calculations, if they are spending braska and appeal to the business com- distinguished Senator from Texas say all that money, and if we are asking munity, to the Nebraska restaurant as- that before he will allow a vote on this them to pay all of this additional sociation, to the Nebraska Chamber of amendment by Senator KERRY and money to continue to smoke, we ought Commerce, and say, ‘‘Let’s get in- Senator BOND, which seems like an al- to at least offer to help those who want volved with this cause of helping the together reasonable amendment to to quit, quit. And if we can help them people in Nebraska who want to quit, me—at least it puts money into chil- stop smoking—not only are they going quit.’’ You say, ‘‘Well, that ought to be dren; he wants an agreement that he is to become healthier as a result of that easy enough to stop.’’ Mr. President, going to get a vote on his amendment. help they are going to be more pros- again, it is addictive, and to stop and Well, I want the same. I am here to perous because they are not spending to get off an addiction is not an easy say that I will insist on the same, an money on tobacco anymore. thing to do. As a result, it is extremely amendment that allows us to say that I have never been convinced by the hard for these people to not pay the this legislation will give each of our arguments that simply raising the price increase being imposed on them— States a designated amount of money, price of cigarettes is going to dramati- they have a physical need for the prod- that we will know what that amount of cally reduce smoking. Not if you are uct. money is going to be, for a block grant addicted. What does the price increase And it is made even more difficult— that will go for smoking prevention of cocaine do to an addict? They just I have met, on a number of occasions and cessation. Let the States decide. I steal the money and buy the substance. now, with Nebraskans who smoke, es- do not believe any of us really under- If it is an addictive substance, I do not pecially with young people who smoke; stands what it is going to take to get care what the price is—a person is ad- and one of the interesting things that I people to stop smoking. I think the dicted to it—they are going to do what acquire from those conversations is an people at the community level under- is necessary to buy the product. That is answer to the question, ‘‘Why don’t stand it an awful lot better. what we are dealing with. you just do smoking cessation if you It is not going to be easy to get the What we are doing with this piece of want to stop?’’ And one of the answers job done. My amendment would create legislation, as I see it, is we are is, it is not only easier, it is cheaper to a single block grant, not only to help nicking away at the money raised as a smoke than to stop smoking. young people not to smoke, but also to June 11, 1998 CONGRESSIONAL RECORD — SENATE S6151 help those who currently smoke to My math tells me the best way to pening with the amendments that have stop. I believe it will make our people look at this is to start off and say, $15 been agreed to thus far. not only healthier, as a consequence of billion coming from the tobacco com- I have come to the floor to ask for getting off an addiction that causes panies, growing to $23 billion, how two things, and I hope at some point I them to have significant health care much is going to be designated under can get them. One, what is in the bill? problems, but it will also make them this law for various items? At this How is that $15 to $23 billion allocated? more prosperous by decreasing the stage of the game, I am not able to get How much goes to the reduction in tax amount of money they are spending on an answer. I understand that the man- in the marriage penalty and whatever a substance that, taken as directed, agers of the bill are going to try to else was in the Gramm amendment? will make them unhealthy. crunch the numbers and give us an an- How much of it goes now to fight the So the Senator from Texas gave me swer, but I don’t think we can seriously war on drugs? For gosh sakes, we don’t an excellent idea. I had not intended on consider it unless we presume we will have the political courage to put doing that when I came to the floor. accept every single amendment and enough money in the drug war on our One of the things I am trying to get to write the bill in conference, which I own without taking it from this bill— is—as I said earlier, I am confused think is a bad way of doing things. I don’t understand that, frankly. How about what is left in this bill. I under- Our most distinguished Senator, much is now going to the war on drugs? stood it in the beginning that it was a George Norris, served in this body for a How much will be going to child care $15 billion fee from the tobacco compa- number years. He went back to Ne- under the Kerry-Bond amendment? I nies, growing to $23 billion; that 26 per- braska, hating the conference commit- want to know what the lay of the land cent of it was going to be allocated to tee—hating the process by which House is. research; that 16 percent of it was and Senate differences are resolved. We Second, I will insist, as the Senator going to be allocated to farmers; that keep hearing that the problems with from Texas has just done, that my 40 percent of it was going to be allo- this bill can be fixed in conference, amendment be considered as well, that cated to States; and the balance was that a conference committee will take we convert this bill into what it was going to be allocated to public health care of them. That is undemocratic. We intended to do in the first place, and for education, cessation. As I under- should not be writing a piece of legisla- that is to give our people at the com- stand it, of the total amount only 6 tion as important as this one in a con- munity level the opportunity to fight percent would go to smoking cessation ference committee. I think it is a very this war against nicotine addiction. I programs. bad thing to do, and I think we need to believe when we win this war, this As I said, I had drafted an amend- consider every single amendment that piece of legislation is going to be seen ment that would have taken a signifi- is brought down here as seriously as as a very important piece of legisla- cant portion—46 percent—of the funds possible, based upon an understanding tion. But if we don’t win this war, if all raised by this legislation and given it of what is in the bill. we do is go home and issue press re- to the States in a single smoking ces- I do not know what is in this bill leases saying I cut your taxes, I gave sation and prevention block grant. right now. I do not know how the $15 to you some more money for this and I have prepared numbers that show $23 billion is being allocated. I know some more money for that, then it what every single State would get every single amendment that has been seems to me, Mr. President, that what- under this block grant designed to passed has changed that allocation, but ever else it is that we get done through work to reduce those people who are I don’t know what we are left with. I those peripheral efforts, we will have addicted to smoking, reduce their knew prior but I don’t know now. I am not empowered the people in our States health care costs, and increase their hopeful we are able to get that. and our communities to be able to prosperity by helping them kick the I will declare, as the Senator from fight a battle that we now know—and, habit and get off of an addiction that is Texas did, that before we have a vote indeed, I argue one of the problems we not only costing them their health but on the Kerry-Bond amendment, which I are having is we don’t know the full also costing them a great deal of support, I want to vote on my amend- ramifications and details of all of the money. ment which will take this bill back to new information that we have since the I will insist on my amendment that what I think it was originally intended 20th of June, 1997—about the serious- will restore the money that was taken to do, which is to reduce addiction in ness of this health care problem. out of the $23 billion in the Gramm the United States of America on a sub- I am hopeful, as I said, that not only amendment, that will restore the stance called nicotine, that we discov- can I get the information about what is money that was taken out with the ered on the 20th of June, 1997, is addict- in the bill right now, but I will hope- Coverdell amendment, that will restore ive. fully not offend too many by insisting, any other money that is taken out. For those who understand the nature as the Senator from Texas has, that I believe if this bill is going to be ef- of addiction, it is a very serious public my amendment be given an oppor- fective, if it is going to help us orga- health problem. I thought we were tunity to be voted on at the same time nize the coalitions at the community going to try to solve a very serious that the Kerry-Bond amendment is level to help Americans become public health problem. I thought we considered. healthier and more prosperous, we have were going to try to empower our citi- I yield the floor. to help especially those adults who are zens to participate in solving that The PRESIDING OFFICER. The Sen- addicted to a substance that is ex- problem, as well. I hope that at some ator from South Dakota. tremely difficult to kick. point in this debate we are able to get Mr. JOHNSON. Mr. President, I ask One of the most frustrating things I back to that. unanimous consent to address the Sen- am dealing with right now on this As I said, I appreciate very much ator for 15 minutes on the bill and the piece of legislation is I don’t know that there is a lot of enthusiasm to underlying amendment. what is in it. I believe before we pro- move this thing along. I read in the The PRESIDING OFFICER. Without ceed further with any additional paper we have dealt with this con- objection, it is so ordered. amendments we need to know how that troversial tax issue and all that is left Mr. JOHNSON. Mr. President, I take $15 to $23 billion is allocated. I heard is the controversial farm provision—we this opportunity to talk about the un- some who are arguing in favor of the just deal with that thing and this thing derlying bill and the Kerry amendment amendment of the distinguished Sen- will move out and put pressure on the that is pending. This is, obviously, the ator from Texas having to do with the House then to pass it. All of that legis- most serious effort ever by any Con- marriage penalty, that we would still lative process confuses me, let alone gress to address the critical public have 40 percent going to the States. It confuses the people I represent. What health issue of smoking. is 40 percent of a much smaller num- they are not confused about is their de- Now, what has brought us to this ber. Forty percent of the people on the sire to have an opportunity to improve point? Obviously, the historic settle- floor of this chamber is a much smaller their health and improve their prosper- ment negotiated last year by the number than forty percent of the peo- ity through this legislation. As I see it, States and the tobacco industry pro- ple in this country. we decrease the chances of that hap- vided the most incentive for this, but S6152 CONGRESSIONAL RECORD — SENATE June 11, 1998 the tremendous success of several we have to strengthen the look-back mately dip into the budget surpluses States—and I particularly note the provisions and, ultimately, hold to- and, in fact, Social Security surpluses State of Minnesota and their attorney bacco companies responsible for their to make good on its obligation. But I general, Skip Humphrey, in aggres- efforts to addict kids. These important believe that if we can use the revenue sively pursuing their claims against decisions will influence companies to that Senators KERRY and DODD have the tobacco industry—has revealed stop marketing to children with adver- proposed, it would go a long way to- what has been the massive deception tising and promotional techniques. ward promoting at least a portion of that underlies the tobacco industry’s I commend my colleagues on both the goals of our Early Childhood Devel- traditional position. sides of the aisle who have supported opment Act, which I have cosponsored It has been now conclusively dem- our efforts to address this critically with them. onstrated that tobacco is, in fact, ad- important issue. This amendment, if adopted, would dictive. That is a claim which the to- My own State of South Dakota holds go a significant way toward assisting bacco industry had consistently denied the dubious distinction of having the working families, recognizing the re- and, frankly, covered up. We have second-highest rate of underage to- ality that more and more families now learned that the tobacco industry has bacco use in America. Now, I am com- have both parents in the workforce, targeted children to addict them to to- mitted to doing what I can to see these and in the case of single-parent fami- bacco products, another claim that the rates reduced. lies, quality child care is all the more tobacco industry has lied and covered Almost one out of every nine high essential. Each day, an estimated 13 up. We have also learned if you do not school boys in my State will die pre- million children younger than 6 years start smoking when you are underage, maturely from tobacco use. Of the old, including 6 million toddlers, spend it is unlikely that you will ever become teenagers in our State, we can now ex- all or part of their day in child care of addicted to tobacco. All the more rea- pect 15,000 South Dakota teenagers to some form, and child care experts tell son, then, all the more incentive, then, die early because of their tobacco use. us it easily costs between $4,000 and for some to try to addict children to These odds are way too high to be per- $10,000 a year for a child. this product. mitted or to be tolerated by this body. Now, augmenting the block grants to I support adult choices and adult re- The expeditious passage of this tobacco the States where we do not create a sponsibility, but when an industry tar- bill will have a real and immediate im- Federal bureaucracy, we do not federal- gets kids, knowing full well the chil- pact on releasing those rates. We can- ize child care, we do not run things dren are vulnerable to addiction, and not delay any longer. I am also pleased from Washington, but we give the re- then argues for adult choice, it is time that as we debate this issue, Senator sources necessary for States to devise for this Congress to step up and protect KERRY, Senator BOND, and others, have their own innovative, strong child care our kids. joined in an effort, which I have joined strategies, makes all the sense in the I don’t need to recite the statistics in as well, to direct a modest portion of world, particularly given the fact that, that everyone in this Chamber has the revenue generated for child care as I have held child care meetings all heard the past couple of weeks now. purposes. around the State of South Dakota, it Let me just say this: 3,000 children I appreciate that there has been a has become obvious to me that not start smoking every day; 1,000 of them significant debate on the floor of this only do people have too few choices— will die prematurely due to this addic- body on the use of revenue generated quality choices—but all too often the tion. Every day we delay this process, by this legislation. I think it is correct child care providers themselves find we sentence another 1,000 children in that this legislation ought to be di- themselves on the economic edge, with America to die early. rected at cessation of smoking and to- good people leaving that particular There are many critical amendments bacco use and not as a revenue genera- profession because of the low salaries to be reviewed and debated, but let us tor. However, the reality is that any and the high stress of that particular not lose sight of the fact that we have realistic bill that has a chance of re- occupation. So we have children at the to act now. There is an urgency to act ducing tobacco usage will generate rev- most vulnerable point in their lives, now. Any further delay would be un- enue, and this body has a responsibility where the greatest share of brain devel- conscionable. The lives of our children of determining how best, then, to use opment is taking place in the course of are at stake, literally. We must protect that amount of revenue generated— their lives, with a patchwork system them from the predatory industry that some $62 billion over the first 5 years. that has simply not received the na- views youth as ‘‘our replacement It makes sense to me the first em- tional attention it deserves. This smokers’’ good for many decades of ad- phasis ought to be on health care, re- amendment would go a long way to- diction to their deadly product. imbursing the States, clearly, for the ward augmenting the child care op- Cigarettes are one of the most heav- health care expenses they have in- tions, the affordable quality options ily marketed consumer products in our curred. It makes sense to me that there that working parents in our country country. Tobacco companies currently ought to be a high emphasis on medical deserve to have. spend almost $6 billion a year to pro- research, on cancer, lung cancer, heart I appreciate that there are people in mote and advertise products, and they disease, and other diseases that are this body and around the country on have increased their spending by more smoking-related. There ought to be a the far political right who seem to lie than 12 times since 1971, when advertis- huge effort in that direction. There awake nights worrying that somehow ing on radio and television was banned. ought to be an effort and a priority for this legislation may generate the re- Children are, obviously, the most smoking cessation programs. But it sources essential for the Government vulnerable to tobacco company tactics. also seems to me that some of these to actually do something for kids. I They have targeted kids because of this dollars ought to roll back to families don’t lie awake nights worrying about vulnerability to nicotine addiction, and to children through some tax re- that. I worry about how can we work and they are the most easily affected lief. No doubt, that will be a part of the on a partnership basis with States, by slick advertising and promotional package. But I think it is a mistake to local governments, and private organi- ploys. The evidence is overwhelming include a tax package that is so enor- zations to provide more affordable and that smoking is a pediatric disease. I mous that it drains, overall, the reve- quality options for child care and im- support a comprehensive approach to nue, or a large share of the revenue prove the health of the next generation ensure success in our efforts to protect that could otherwise have been utilized of Americans. I think that is the un- kids. For every 10 cents added to the for medical research, help for the derlying concern. For that reason, I am price of cigarettes, approximately States, smoking cessation, or for child very supportive of this amendment and 700,000 fewer teens will begin smoking. care. I think there needs to be a bal- the underlying bill. To further promote public health, I ance in that regard. I yield the floor. have supported investment in public I am particularly troubled by the Mr. WELLSTONE addressed the health and research. We must maintain amendment that was passed yesterday, Chair. and support FDA authority to restrict which would, in fact, not only drain The PRESIDING OFFICER. The Sen- advertising directed at teens. Finally, these resources away, but would ulti- ator from Minnesota is recognized. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6153 Mr. WELLSTONE. Mr. President, my what this legislation is supposed to be eration, the tobacco industry has been understanding is that we may have a all about—public health, focusing on profiteering by abusing the nation’s vote soon on the amendment, so I will the improvement and the betterment children, stunting their growth and take a couple of minutes. My colleague of our children’s lives, and all of these stealing their futures. The full dimen- from Massachusetts is here and others children are God’s children. sion of this cynical tobacco industry are here on the floor. Let me just say This amendment should pass. It is a strategy is finally becoming clear. The that I am honored to be a part of this bipartisan effort. I am very pleased to avalanche of secret industry docu- effort and to join with Senators KERRY be on the floor supporting it. ments disclosed in recent months re- and BOND. And I appreciate the words Mr. KENNEDY addressed the Chair. veals a blatant nationwide scheme to spoken by my colleague from South The PRESIDING OFFICER. The Sen- target children and addict them to to- Dakota. ator from Massachusetts. bacco in order to maximize industry Mr. President, I will try to be suc- Mr. KENNEDY. Mr. President, I profits. cinct. The focus of this legislation is strongly support the Kerry/Bond Youth For a quarter century the R.J. Rey- children. The focus of this legislation Smoking Reduction Amendment. This nolds Company has referred to children is, of course, to go after the addiction year has featured hearings, press con- as ‘‘tomorrow’s cigarette business.’’ of children to tobacco, to focus on ces- ferences, and legislation from both Newly released documents show that sation programs, to focus on the goal sides of the aisle promoting children’s Philip Morris provided money to movie of making sure that we don’t have chil- programs. Over 50 bills have been intro- makers to add smoking scenes to popu- dren addicted to this very lethal drug duced to improve childhood develop- lar movies, such as the Muppets, in any longer, and to make sure that we, ment and after school programs. Head- order to observe attitudes toward in fact, focus on the overall health of lines have focused the nation’s atten- smoking by children as young as 5 children in our country, and that we tion on the difficulties that many par- years old. As a result of the tobacco in- focus on ways in which children cannot ents face in finding quality care for dustry’s tactics, 93 percent of 6 year only be healthy, but have hope and can their children. The struggle for decent olds can identify Joe Camel as a sym- do well in school and do well in their child care is a daily fact of life that all bol of smoking. lives. working families understand, regard- Investing in child development is In that respect, I think this amend- less of their income. Yet millions of sensible ‘‘public health’’ strategy. It is ment is right on point, right on target. families today cannot afford the child based on sound science and common We are talking about at least trying to care they need in order to raise, and sense. Doctors and public health offi- make sure that about $6 billion-plus protect their children. cials who are on the front lines, work- over the next 5 years would go to early Both Republicans and Democrats ing tirelessly to help children grow and childhood development, both for chil- agree that the number one goal of this develop into productive citizens, know dren before they go to kindergarten tobacco bill ought to be protecting our all too well the dangers of tobacco. and also for afterschool care. children and reducing teenage smok- They have seen all too frequently its I will just raise two questions in 2 ing. Rightly, so. Millions of young lives tight grip on our young people. They minutes. No. 1, to tell you the truth— hang in the balance. Every piece of to- have called upon us to do all we can to that is an interesting expression; it is bacco legislation that has been intro- reduce teen smoking, including an es- not like everything else I have said has duced is intended to help children. Re- sential investment in early childhood not been the truth—but to tell you the publicans have called their bills ‘‘Plac- development and after school pro- truth, I don’t even know why it is that ing Restraints on Tobacco’s grams. Forty-two doctors, public for some reason, somebody decided the Endangerment of Children and Teens health officials, business leaders, and only way we are going to have funding Act’’ and the ‘‘Kids Deserve Freedom child development experts including for child care in this country is out of from Tobacco Act.’’ Democrats have Dr. T. Berry Brazelton, America’s fore- a tobacco bill. I think if we really care introduced the ‘‘Healthy Kids Act.’’ most pediatrician, have strongly sup- about this, we are going to make the It’s time to make this legislation re- ported this strategy, and have asked investment. But I also believe this is a flect the rhetoric about children. Congress to invest in child care and very appropriate vehicle on which to Senator GRAMS was right when he re- after school programs to prevent youth have this focus. As my colleague from cently explained why he will not sup- smoking addiction. South Dakota said—and I know my port the tobacco settlement—‘‘It’s not Recent research reminds us that colleague from Massachusetts will about protecting kids from tobacco, be- brain development in the first three focus on this—we have all this re- cause if it were, the dollars the federal years of life is critical to laying the search, and the Federal evidence is ir- government collects would go to the foundation for positive self esteem, ef- refutable, irreducible. We have to make kids.’’ fective decision-making and the ability sure that children by the age of 3 are I agree that these funds should be to resist destructive habits such as ready for school and ready for life. If used for early childhood development, smoking. If we want children to grow they are not, they may never do well in child care and after school programs— up healthy and tobacco free, we must school; they may never do well in their programs that directly help kids. These ensure that they receive the stimula- lives. programs are effective ways to curb tion and nurturing they need early. If What more important investment, teen smoking and promote a healthy we wait until adolescence to help them what more important feature of this future for our children. It’s time to develop the will and the skill to say no legislation could we support than to stand up for the nation’s children, and to smoking—what we do will be too lit- make sure we invest in the health, stand against the tobacco industry. tle and too late. skills, intellect, and character of our During this debate, there has been a After school and summer programs children? That is what this is about. It great deal of discussion about restrict- also make a large difference. Over 5 is related to how they feel about them- ing tobacco advertising and increasing million children are left home alone selves, their confidence—both early the price of cigarettes. Both steps are after school each day. They are more childhood development before kinder- intended to curb teenage smoking, and vulnerable to negative peer pressure garten and afterschool care. That is both will help to do just that. But and pressure from the tobacco indus- also related to the question of whether there are other steps we can take as try. These are precisely the teenagers or not they care enough about them- well to deal with realities that make targeted and manipulated by the indus- selves and feel good enough about children vulnerable to the lure of to- try’s marketing schemes. After school themselves that they don’t get ad- bacco. By investing in essential early programs help keep young people off dicted to tobacco and that they think childhood development and care that the streets and engaged in constructive about a positive life, about a healthy can really help us save children from activities that do not jeopardize their life, and about what they are going to the dangers of smoking. futures. Many of these after school pro- do in their lives. The purpose of this tobacco legisla- grams specifically incorporate anti- This is an extremely important tion is to help children and to stop smoking initiatives to teach partici- amendment which goes to the heart of teenage smoking. For more than a gen- pants about the dangers to tobacco and S6154 CONGRESSIONAL RECORD — SENATE June 11, 1998 equip them with the skills to make im- I believe that this amendment ad- children are not in school, such as dur- portant life and death decisions. dresses one of the very important con- ing vacations and also the summer- Teenagers left home alone are sig- clusions that have been drawn on the time, considered together, have a very nificantly more likely to smoke ciga- basis of sound science and common powerful impact in strengthening the rettes, drink alcohol, and experiment sense. We have learned that if you see willingness of children to resist the with drugs. In stark contrast, children a significant increase in the cost of a negative behavior patterns that start who participate in productive after pack of cigarettes, that it provides a out with smoking, then yield to smok- school activities are far less likely, to significant disincentive to children to ing and drinking, and then, as the law smoke, drink alcohol, or use drugs. We involve themselves in smoking. We find enforcement experts provide, smoking also know that cigarettes are a ‘‘start- out that if you provide and drinking lead their way to signifi- er drug’’ and often lead to hard drug counteradvertising in making young cant substance abuse. That empirical use and substance abuse. people aware of the dangers, that it can evidence has been included during the High quality child care and after have a powerful impact in offsetting period of these last couple of weeks and school programs can help children de- the $5 billion a year that is out there has been amply justified over a period velop the skills they need to avoid to try to draw young children into of time. unhealthy habits such as smoking. smoking by presenting the case that, if The benefit of this particular amend- But, every day across America, mil- they start to smoke, their life will be ment, I think, primarily rests with lions of low-income working families more exciting, more pleasurable, and helping the children at their most vul- face the daunting task of finding af- more successful. You don’t need to nerable time, as they are developing fordable child care on their limited match the tobacco industry dollar for their own kinds of confidence-building budgets. The reality is that far too dollar, but you do need to have an ef- skills—giving them the kind of help, many children are at risk. Ten million fective counteradvertising campaign. support, and the power to resist abnor- low-income children today theoreti- That reduces youth smoking. We have mal, negative, and destructive behav- cally qualify for services under current seen it in Massachusetts. We have seen ior. federal child care programs. But be- it in California. I have referred to those Second, it provides an important in- cause of the lack of funding, only 1 in studies at other times in the course of vestment in terms of the children so 10 actually receive it. The cost of de- this debate. they will have a more useful, construc- cent child care often ranges from $4,000 Cessation programs to help young tive, happier, and productive life. to $10,000 per year—yet a minimum people to stop smoking have had some All we have to do is consider the Bee- wage job pays only $10,700 a year. Low- important success. thoven studies that have been done in income parents need support to ensure Support for school-based programs, Chicago and the Ypsilanti studies that that their children are safe and well which I see in my own State of Massa- have been done, which have dem- cared for. Unfortunately, far too few of chusetts, where young people involve onstrated this kind of investment in them receive the help they need and themselves in working with law en- terms of children’s attitude and sup- deserve. Sadly, they are the one group forcement to discourage retailers from port pays off in just the way that has that has been deliberately targeted by violating the law, has had some suc- been represented by those who have ad- the tobacco industry for addiction and cess. vanced this amendment. early death. That is why I support the We have a number of young people This is right on target in helping to Kerry-Bond Amendment, which will en- now in my State of Massachusetts who reduce children’s smoking. It is right sure that at least half of the federal are involved in programs to have the on target in ensuring that children who share of the state funds received under various malls around Massachusetts are the most vulnerable will be able to this legislation will be spent by states smoke free. They are doing it as volun- develop the kind of skills to resist on after school care and early child- teers. The young people are doing it. smoking. hood development by increasing the They are also educating the public and It is right on target and consistent Child Care Development Block Grant. their colleagues about the dangers of with the public health drive, which is The American people understand the smoking. the central purpose of this bill, and importance of funding these child de- There are a number of things that cannot be distorted and cannot be mis- velopment programs. They agree that can be done. But the importance of pro- represented by those who are opposed tobacco settlement revenues should be viding early child development to to any kind of legislation. As hard as invested in child care and child devel- equip young children with the con- they try, this legislation is moving for- opment programs. I have received nu- fidence-building tools so that they ward. merous letters from groups, experts, have the ability to resist various peer But with this particular amendment, and parents from across the country pressures and develop those skills of it will be a more effective bill in help- urging Congress to do so. competence is absolutely imperative ing the children in this country. It is If we want children to say no to to- and essential if we are expecting the an amendment that should be accepted, bacco, then Congress needs to say yes children in the future to resist dan- supported, approved, and made a part to making children’s programs part of gerous types of behavior. That has been of this bill. our national strategy for keeping chil- demonstrated time in and time out. Mr. President, I hope that the dren healthy and tobacco free. The various Carnegie studies have amendment will be accepted. Mr. President, I join in commending amply demonstrated that. Mr. ROTH. Mr. President, the Kerry my friend and colleagues, Senator This legislation is focused on early amendment once again raises the fun- KERRY and Senator BOND, for bringing child development, building those con- damental questions as to why the up this amendment. I think it is very fidence-building skills, helping and as- United States Senate is considering consistent with the central thrust of sisting in augmenting and supporting this tobacco settlement bill. Is its pur- this legislation which is addressed to children at the earliest ages. We find as pose to reduce the number of children reducing the number of young people in the study goes on and on that the ear- who will become addicted to nicotine, this country—the children of this coun- lier, really, the better. or it is cover for another Washington try—from becoming involved in smok- Then by providing an atmosphere power grab? ing. where these children are going to be In recent days, the Senate has de- What we all find out in listening to able to be challenged intellectually and bated various amendments which af- those who have thought about this, socially in child care settings provides fect the agreement Senator MCCAIN studied it, and reviewed the various the kind of supporting atmosphere and reached with the nations’ governors to real-life experiences that we have seen climate, again, for building their con- secure their support for this legisla- in different communities, countries, fidence-building skills. tion. Members have voiced opposition and States is that there are some very, Also, providing some after-school to amendments on the grounds that it very powerful conclusions. There is no programs, whether it is in the day violates the agreement reached be- one single answer, but there are a se- when the children are attending school, tween the governors and the White ries of answers. or whether it is at a time when the House. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6155 There can be no doubt that the Kerry reduce the social services block grant. be spent, or at least how it applies to Amendment fractures that agreement. The two ideas are mutually exclusive. the States. It has a couple of different On a bipartisan basis, Governor Every state uses SSBG funds to provide sections. It states: ‘‘Restricted Funds.’’ Voinovich of Ohio and Governor Carper day care for children. That is, 50 percent that States could of Delaware have issued a letter oppos- Mr. President, the Kerry amendment spend any way they wish. That is under ing the Kerry amendment. Their May does not define who is for child care or title (b). 19 letter states, ‘‘the National Gov- who is against child care. The Clinton Under the funding for child care, ernors’ Association strongly opposes administration has acted in a con- under section 418 of the Social Security the Kerry amendment which dictates tradictory way and those who voted to Act, it has some new language that was state funding choices.’’ cut the social services block grant have put in. I don’t know what the purpose Governor Carper and Governor acted in a contradictory manner. If we of it is, but it states that notwith- Voinovich go on to state, ‘‘This fun- are serious about child care, the first standing subsection (b)(2) of that sec- damentally undercuts the agreement priority should be to restore the social tion—we looked that up and basically included in the manager’s amendment services block grant. it means we eliminate the means test- and would make it impossible for Gov- If the Kerry amendment is adopted, ing for this program. The program that ernors to continue to support this the U.S. Senate will be saying that the we are dealing with in child care is sup- agreement. state match for child care funds is both posed to be for low income, and now we ‘‘In addition, by locking states into a too high and too low. find this tobacco bill coming in and specific child care requirement, the Mr. President, this simply does not saying, well, we are going to eliminate Kerry amendment would prevent states make sense. means testing. So millionaires’ kids from meeting other compelling needs The Kerry amendment is not needed. will qualify for this. That is not the purpose of the child as their particular circumstances dic- The states are free to spend their en- care block grant program. And then tate.’’ tire amount of unrestricted funds on the child care block grant program was Mr. President, the Kerry amendment child care if they so choose. Of the 50 is the old broken record that Washing- supposed to be on a State share iden- percent of funds which are restricted, ton knows best. Only Washington can tical to Medicaid. In some States, that child care is one of the options the set the priorities. is 50–50, 50 percent Federal, 50 percent states can spend their tobacco funds Mr. President, by imposing this re- State. We put in a little change in this striction on the states, the Kerry on. bill that says it is 80–20, 80 percent Fed- Mr. President, Delaware is consider- amendment has changed the rules of eral, 20 percent State. welfare reform. The effect of the Kerry ing using its tobacco funds for expand- Now, I am bothered by that. I am amendment is to increase the state ing health insurance to low-income bothered by it for two or three dif- matching requirement for receiving families. The Kerry amendment would ferent reasons. One, I have stated all funds out of the child care and develop- substitute the judgment of the U.S. along I have felt this entire bill was a ment block grant. Why are we impos- Senate about what priorities should be tax-spend bill. We raise a lot of taxes. ing such a policy on a tobacco bill? funded for the judgment of the elected We are transferring about $102 billion If the Kerry amendment is adopted, men and women of Delaware. from consumers over the first 5 years— the tobacco bill will contain two com- That is a mistake we should not I think over 25 years probably well in pletely contradictory policies. The make. excess of $8- or $900 billion but just for McCain May 18 modification already Mr. MCCAIN. Mr. President, as we the first 5 years alone, $102 billion. Half establishes new rules for claiming addi- had agreed earlier, I will in a few sec- of that money we allocate and we say tional federal dollars for child care. onds propose to table the Kerry amend- to the States, you are going to get your Under section 452, ‘‘Grants to States,’’ ment. Following that, under a previous fair share, you are going to get part of the bill now changes the federal match agreement, Senator FAIRCLOTH and it, and now we dictate how the States rate for new child care dollars to 80 Senator SESSIONS will be recognized for have to do it. But now we find out percent. This is a higher match rate their amendment, which I understand there is a little language change to than any state receives for the Medic- has to do with attorneys’ fees, and I say, well, we are going to allocate this aid Program. hope we can complete that in a reason- new money; we are going to take child Why must the federal government able length of time. This issue has been care development block grants, which bribe the states to claim federal dollars fairly well ventilated in the past and is right now total about $3 billion, and we for child care by lowering the cost to well known now. are going to make it $5 billion. This is the states? Simple. Because the states I think it is well known that the $2 billion on top of what we already are not spending all of the child care amount of money attorneys would re- have. That is a 66-percent increase per dollars already available to them. ceive under this settlement and are re- year. In fiscal year 1997, the states spent ceiving or scheduled to receive under Then we change the eligibility and only 72 percent of what they could have State settlements is inordinately high, say it is not means tested. Then we spent out of the child care and develop- to make one of the grossest understate- change the ratio where the States ment block grant. The tobacco bill in- ments of this debate. I think it is im- don’t have to put up their matching cludes this higher match rate at insist- portant Senator FAIRCLOTH and Sen- share in Medicaid. We just say the Fed- ence of the White House. The Clinton ator SESSIONS intend to debate this. eral Government is going to pay 4 to administration fully understands it Mr. President, at this time I move to 1—80 percent Federal Government, 20 must change the rules in order to pump table the Kerry amendment. percent by the State. So we have a more dollars into child care. Mr. NICKLES. Will the Senator yield massive expansion of an entitlement Mr. President, this administration for just a moment? program, a massive expansion of who is proposal is so troublesome to me be- Mr. MCCAIN. Mr. President, I yield eligible. We make higher income people cause the White House is blowing hot the floor. eligible. It is just another way to see, and cold air at the same time on the Mr. NICKLES addressed the Chair. can’t we funnel more money? Can’t we issue of child care. The White House The PRESIDING OFFICER (Mr. spend more money? This is living proof proposed cutting funds for child care SMITH of New Hampshire). The Senator this amendment is not about curbing under the title XX program. The Presi- from Oklahoma. smoking. It has nothing to do with dent’s budget requested a reduction in Mr. NICKLES. Mr. President, I thank curbing smoking—nothing, not one this important program for fiscal year my colleague from Arizona for not thing. It is not going to reduce con- 1999 and in the years beyond. moving to table just yet because I sumption by teenagers one iota, but it Under the Clinton administration’s would like to make a couple of com- will spend $50 billion. budget, the SSBG would receive $1 bil- ments concerning the amendment that The amendment that we have before lion less than what is authorized under is pending. us says to the States, you will spend 50 welfare reform in 2003. The amendment that is pending deals percent, or basically $49.25 billion, over Mr. President, you cannot profess to with section 452 of this bill. Section 452 the next 25 years in child care, basi- be for child care when you propose to deals with how the money is going to cally $2 billion a year—$2 billion a year S6156 CONGRESSIONAL RECORD — SENATE June 11, 1998 for a program in which we are already McCain Reed Smith (OR) Mr. FAIRCLOTH. Absolutely, yes. Mikulski Reid Snowe Mr. KERRY. I thank the Chair. spending $3 billion. So we spend $3 bil- Moseley-Braun Robb Torricelli lion now. We increase that $2 billion Moynihan Rockefeller Warner The PRESIDING OFFICER. The Sen- per year, a 66-percent increase in Murkowski Sarbanes Wellstone ator from North Carolina. spending on child care development Murray Shelby Wyden Mr. FAIRCLOTH. Mr. President, I block grants. Then we change the rules NOT VOTING—1 rise to offer an amendment to limit at- and say, well, we don’t have means Specter torneys’ fees in this tobacco settlement testing on the new money. And we to $1000 per hour, and I am joined by The motion to lay on the table the the Senator from Alabama, Mr. SES- won’t use the old Federal match of amendment (No. 2689) was rejected. Medicaid. We are going to come up SIONS, and the Senator from Kentucky, The PRESIDING OFFICER. The Mr. MCCONNELL. with a new match that says, Federal question is on the amendment. Government, you have to pay four The tobacco legislation is about pub- Mr. GRAMM. Mr. President, I sug- lic health—not the enrichment of trial times as much as the States. I think gest the absence of a quorum. lawyers—and I believe that this is that is a serious mistake. The PRESIDING OFFICER. The more than ample compensation for Mr. President, I hope that our col- clerk will call the roll. these lawyers. leagues will say, wait a minute, this is The legislative clerk proceeded to I offered a fee limitation amendment not about reducing smoking. This call the roll. last month at $250 per hour, and I con- amendment has nothing to do with re- Mr. THURMOND. Mr. President, I sidered that excessive, but I was reluc- ducing smoking. It does have to do ask unanimous consent that the order tant to lose votes from those inclined with increasing social spending. It is for the quorum call be rescinded. to believe otherwise. I believe that pas- something that some people maybe The PRESIDING OFFICER. Without sage of a fees limitation amendment is have wanted to do. It is something we objection, it is so ordered. a legislative imperative, Mr. President, have had an increase on in the last cou- Mr. THURMOND. Mr. President, I but I am a realist. It is the obligation ple of years. But I would just urge my ask unanimous consent that I be al- of this Senator to set aside personal colleagues, this is not the right way to lowed to speak for 10 minutes as in reservations and sentiments and to spend this money. This is people say- morning business. offer an amendment that will pass the ing, wait a minute, there is money The PRESIDING OFFICER. Without Senate and restrain the trial lawyers available. Let’s take it and use it for objection, it is so ordered. from their plunder of the Treasury. what we deem is right. It has nothing The Senator from South Carolina. I thought that $250 per hour was an whatsoever to do with curbing teenage (The remarks of Mr. THURMOND per- inordinate reward for these trial law- consumption or addiction to tobacco or taining to the introduction of S. 2163 yers and favored a far lower limitation, drugs, and so I would urge my col- are located in today’s RECORD under but I can count votes, and I regret that leagues to vote in favor of the McCain ‘‘Statements on Introduced Bills and passage requires a higher cap. The trial tabling motion. Joint Resolutions.’’) lawyers are the ultimate Washington Mr. MCCAIN. Mr. President, I move Mr. MCCAIN. Mr. President, I suggest special interest, Mr. President, and to table the Kerry amendment and ask the absence of a quorum. these courtroom predators marshaled for the yeas and nays. The PRESIDING OFFICER. The all their forces against the Faircloth The PRESIDING OFFICER. Is there a clerk will call the roll. cap and indeed forced another vote on sufficient second? The legislative clerk proceeded to this issue. There is a sufficient second. call the roll. The Federal government cannot put The yeas and nays were ordered. Mr. MCCAIN. Mr. President, I ask its imprimatur on legislation that di- The PRESIDING OFFICER. The unanimous consent that the order for verts billions from the taxpayers to question is on agreeing to the motion the quorum call be rescinded. pay trial lawyers. Mr. President, this is The PRESIDING OFFICER. Without to table the Kerry amendment, No. the legislative process of the Senate, objection, it is so ordered. 2689. The yeas and nays have been or- not ‘‘Wheel of Fortune’’ for trial law- Mr. MCCAIN. Mr. President, we are dered. The clerk will call the roll. yers. working on a unanimous consent The legislative clerk called the roll. If the Congress fails to enact fee lim- agreement so we can make the Gramm Mr. NICKLES. I announce that the itations, Mr. President, trial lawyers amendment in order after a Democrat Senator from Pennsylvania (Mr. SPEC- will collect from $3 billion to $15 bil- amendment. As we had previously TER) is absent because of illness. lion per year in fees. The state Medic- agreed amongst all parties, I ask that The result was announced—yeas 33, aid suits will yield $1 billion to $3 bil- Senator FAIRCLOTH be recognized to nays 66, as follows: lion per year, and, the lawyers will be propose his amendment while we work further enriched through their contin- [Rollcall Vote No. 157 Leg.] out this unanimous consent—that he gency fees from individual smoker YEAS—33 be allowed to start debate on his cases, from which they will reap be- Allard Grams McConnell amendment. tween $2 billion and $12 billion per Ashcroft Gregg Nickles Mr. KERRY. Mr. President, reserving Brownback Hagel Roberts year. Coats Helms Roth the right to object, it is my under- In fact, if the Congress fails to enact Cochran Hutchinson Santorum standing that no amendment will be fee limitations, trial lawyers stand to Craig Inhofe Sessions sent to the desk at this point. collect at least $100 billion over the DeWine Kempthorne Smith (NH) The PRESIDING OFFICER. No Enzi Kyl Stevens next 25 years. This $100 billion sum ex- Frist Lott Thomas amendment can be sent to the desk be- ceeds the annual gross domestic prod- Gorton Lugar Thompson cause there is a pending amendment. uct of 24 States and 98 foreign coun- Gramm Mack Thurmond Mr. KERRY. Mr. President, I ask the tries. NAYS—66 cooperation of our colleague that once The failure to replace the arbitration Abraham Collins Harkin we have the unanimous consent re- provision in the McCain bill with a fees Akaka Conrad Hatch quest worked out, that the Senator limitation provision, if the Senate Baucus Coverdell Hollings would yield back to us for the purposes were so blind, would constitute acqui- Bennett D’Amato Hutchison of propounding that request, and allow Biden Daschle Inouye escence to the most blatant and insid- Bingaman Dodd Jeffords that interruption in the debate. ious special interest legislation since Bond Domenici Johnson Mr. FAIRCLOTH. I plan to start the the Senate convened in 1789. Boxer Dorgan Kennedy debate on my amendment, and shortly This is a $100 billion payoff for the ul- Breaux Durbin Kerrey Bryan Faircloth Kerry the amendment will be made germane. timate special interest. This is the Bumpers Feingold Kohl Mr. KERRY. Do I understand from Washington special interest that leads Burns Feinstein Landrieu the Senator from North Carolina that the pack in its passion for personal in- Byrd Ford Lautenberg he will allow us to interrupt him in Campbell Glenn Leahy terest over national interest. Chafee Graham Levin order to propound the unanimous con- The trial lawyers, Mr. President, will Cleland Grassley Lieberman sent request? not bloat their stock portfolios at the June 11, 1998 CONGRESSIONAL RECORD — SENATE S6157 expense of taxpayers across this na- contingency fee contracts to impose re- Mr. President, let us not underesti- tion. This tobacco legislation is, in es- strictions on the lawyers’ share of the mate the creative spirit of the plain- sence, the fruit of an extortion pact. recovery. tiffs’ bar, because I assure you that The Congress cannot reward this legal These statutes serve, in effect, to this flood of fee petitions will indeed vigilantism. The Senate is not for sale. protect clients from their lawyers. materialize under this provision. The four state cases that settled por- The taxpayers deserve the same pro- Finally, the arbitration mechanism tend a dreadful abuse of the taxpayers tections, Mr. President, and these ar- applies to fee and expense disputes re- and underscore the imperative of fed- guments about an unprecedented fees lated to litigation ‘‘affected by’’ this eral fee limitations. Judge Harold limitation are specious and unfounded. Act. In light of the broad scope of this Cohen of the Florida circuit court esti- The McCain bill addresses attorneys’ bill, it is possible that this mechanism mated that their fees of $2.8 billion fees provisions through its flawed arbi- will be invoked not only in tobacco and were, in fact, equivalent to $185,186 per tration clause, so, clearly, reasonable health cases, but in other cases that in- hour. The five trial lawyers about to limitations on fees are within the scope volve tobacco manufacturers. share $2.3 billion in Texas will collect, of this legislation. It is not impossible that pure com- in effect, close to $92,000 per hour. Mr. President, several members mercial cases will come within the Who are these modern Sir William pointed to the arbitration clause in the scope of the arbitration mechanism to Blackstones? bill as an alternative to the fees cap, the extent that these cases are ‘‘af- Who are these latter day Clarence but the arbitration clause is really a fected by’’ the tobacco legislation. Cer- Darrows and William Jennings Bryans? ‘‘trial lawyers’ bill of rights’’ rather tainly, Mr. President, billboard owners I discovered that Hugh Rodham, the than a protection for American tax- with abrogated contracts and other President’s brother in law, is amongst payers. Their argument that the arbi- parties ‘‘affected by’’ the settlement their ranks. It is estimated that he will tration clause will alleviate concerns appear to fall within the broad scope of collect $50 million as a Castano group about excessive attorneys’ fees is, in this provision. lawyer. Mr. President, permit me to fact, a concession that the fee con- I heard a lot of rhetoric last month read two newspaper reports of his con- tracts are excessive and merit review. about the constitutionality of this fee tributions to these lawsuits. The Congress of the United States limitation. However, despite the spe- cannot shunt that obligation to a panel And just for good measure, the state of cious arguments of the plaintiffs’ bar, Florida has hired Hugh Rodham (Hillary of unnamed arbitrators. the Faircloth cap is constitutional. The arbitration clause in this bill is Clinton’s brother) to be a part of their litiga- The Supreme Court precedents are a one-way street that permits law- tion team, despite his complete lack of expe- clear that Congress can upset economic yers—but not their clients—to compel rience in these types of cases.’’ Knoxville expectations as part of a comprehen- News-Sentinel, July 20, 1997. arbitration of attorneys’ fees disputes. Hugh Rodham ‘‘spen[t] the last hours of In effect, the lawyers can compel the sive regulatory scheme. In fact, I heard the talks in a corner reading a paperback by States to participate in binding arbi- members praise the bill last month be- Jack Higgins, ‘Drink with the Devil.’ ’’ Wash- tration, and the outcome cannot be ap- cause its regulations are so pervasive ington Post, June 23, 1997. pealed. and its reach so broad, so the legisla- Mr. President, I also wish to address If arbitration is indeed the exclusive tive history will support my argu- some misinformation about the Fair- remedy for fee disputes, it locks in ments. cloth cap, and I believe that I can rebut these fees because the lawyers will not Mr. President, Federal courts have all the arguments made against the object to the billion dollar contingent routinely upheld laws that abrogate amendment last month. fee arrangements, and the States are past contracts, so long as those laws Mr. President, it was said on this not empowered to challenge the fees possess a rational basis. It is certainly floor last month that my amendment under the arbitration clause in the bill. rational to regulate fees as part of a was unprecedented, but this is not the The lawyers can just file court papers broad regulatory package to ensure case. The Federal government often to pursue enforcement of their con- that an equitable amount of finite re- sets professional fees. tract. sources will be available to protect the Medicare and Medicaid, for example, If arbitration is an exclusive remedy, national public health and welfare and limit physicians’ fees for professional however, it is a clear violation of both to compensate those who suffer from services. These doctors contribute far the Seventh Amendment right to a tobacco-related diseases. more to public health than the trial jury trial and state sovereign immu- This bill will force tobacco compa- lawyers, but the Congress decided to nity provisions. These are serious and nies to abrogate contracts with a range limit their fees, so I find it remarkable indeed insurmountable constitutional of parties—from retailers to advertis- that Senators will argue to exempt hurdles. ers—but, curiously, I do not see hand- lawyers from policies intended to pro- If arbitration is not an exclusive wringing about the abrogation of those tect the taxpayers. remedy, the clause purports to let trial contracts. There are numerous federal laws that lawyers choose between arbitration It is a ludicrous constitutional propo- set attorneys’ fees. The Equal Access and litigation, but it forces their cli- sition to suggest that private parties to Justice Act sets fees at $125 per hour ents—taxpayers and tobacco users— can enter into contracts in order to in civil rights cases. The Internal Reve- into expensive and protracted litiga- preempt congressional actions. nue Code sets fees at $110 per hour in tion battles. Further, Mr. President, this bill successful taxpayer cases. The Crimi- The language in the bill authorizes minimizes the risks in tobacco litiga- nal Justice Act sets fees at $75 per the arbitration panel to award attor- tion. The McCain bill makes it far easi- hour. Certainly, Mr. President, these neys’ fees and expenses for ‘‘legal serv- er for the lawyers to win their cases are not uncharted waters. ices’’ that ‘‘in whole or in part resulted against the tobacco companies. This These statutes restrict fees awards in or created a model for programs’’ in new courtroom landscape compels the against the United States to protect the bill. The bill thus appears to au- Congress to revisit these fee arrange- the taxpayers. The taxpayers, after all, thorize fees for attorneys who played ments that date to a different and dis- pay the expenses of the United States. no role in the underlying litigation tant era of tobacco litigation. Dan Morales, the Attorney General of that gave rise to the bill. The McCain bill establishes unprece- Texas, admitted that the taxpayers This bill incorporates elements of dented evidentiary presumptions that will pay part of the attorneys’ $2.3 bil- many—if not most—of the tobacco con- reverse the traditional burdens of proof lion share of the Texas settlement. The trol programs that the public health on two critical issues—nicotine addi- principle is the same, Mr. President, groups advocated in recent years. The tion and disease causation—and thus and these fee limitations protect the panel thus stands to draw fee and ex- relieve trial lawyers of litigation ex- taxpayers. pense applications from the armies of penses for these complex issues. There are countless other federal pro- lawyers and legal assistants that pro- The McCain bill also establishes a to- visions that limit attorneys’ fees—from vided public agencies and private orga- bacco document repository, which will the Veterans’ Benefits Act to the Trad- nizations with advice about tobacco curtail—if not eliminate—the need for ing with the Enemy Act—and preempt control measures over the years. the discovery process. The discovery S6158 CONGRESSIONAL RECORD — SENATE June 11, 1998 process is long and intensive, so the Consequently, ethicists point out Nader, conceded that, ‘‘My gut feeling McCain bill, in effect, relieves lawyers that contingency fees compel a height- is that these fees are very, very dif- of the most expensive element of the ened scrutiny because these arrange- ficult to justify.’’ litigation, which is often cited as the ments thus benefit the lawyer at the The United States Senate represents justification for their enormous fees. expense of his client. Indeed, reduc- the taxpayers, not the trial lawyers, Indeed, the Chairman of the Senate tions of the lawyers’ fees accrue to the and this amendment is a litmus test of Judiciary Committee stated that, benefit of the client, and that balance our commitment to the taxpayers. The ‘‘[O]nce we establish this document re- compels the Congress to weigh in on breadth of support for this amendment pository, it should be easier to prove behalf of the clients. Mr. President, reaches across the spectrum because cases that can go to jury and, I think, those clients are injured smokers and these jackpot fees offend our sense of increase the chances of jury awards the taxpayers of the United States, and justice. * * * . It would be easier to recover they deserve our support. The Congress cannot permit the ulti- * * * . [A]ttorneys today will have ev- Mr. President, this amendment is mate Washington special interest—the erything going for them because of the fair, and it is consistent with the rest trial lawyers—to dictate this legisla- tobacco settlement.’’ of this bill. The trial bar argues that a tion and to reap unimaginable rewards It is manifest that this bill will ease fees cap violates free market prin- and riches. The Congress cannot en- their burden in the courtroom, Mr. ciples. It was, however, their submis- dorse an extortion pact foisted upon President, so it defies common sense to sion of the proposed tobacco settle- the American public—and the Con- assume that the Congress will permit ment to Congress for review and ap- gress—by a pack of legal predators. fees predicated upon a dramatically proval that removed the agreement The Congress cannot tax the poorest different legal position. from the free market and brought it Americans—those least able to shoul- These lawyers are officers of the into the legislative process. der additional taxes—in order to show- court, Mr. President, so they are fidu- The Congress cannot condone billion- er golden dragoons upon trial lawyers. ciaries. These arguments about the dollar payments to a small band of I want to touch on one quick thing sanctity of contract are thus specious trial lawyers for minimal efforts. Some because I am ready to close. because there are different rules appli- of these lawyers copied court papers If this bill passes, 70 percent of the cable to attorneys’ fees. Mr. President, from other state lawsuits and filed largest tax in history is going to be to argue otherwise is, in effect, to ad- these documents in elaborate produc- paid by people making less than $35,000 vocate the repeal of the canons of eth- tions choreographed for the television a year. If anybody can tell me that it ics. news. This is the essence of ‘‘jackpot is unfair to restrict the attorneys to The common law tradition, which we justice.’’ $1,000 an hour when the people who are uphold today, enshrines a quid pro quo The trial bar cannot expect Congress paying this tax make less than $35,000 a that offers lawyers monopolistic access to enact broad and detailed legislation year, 70 percent of it is going to be paid to the courts but that requires reason- to regulate tobacco and, yet, believe by people making less than $35,000 a able fees to preclude exploitation of that their component of the bill is sac- year. No one can tell me that it is not clients. rosanct and above congressional re- right to restrict the attorney fees to The old rules of the Model Code stat- view. $1,000 an hour. ed that ‘‘clearly excessive’’ fees were Mr. President, despite vehement The Congress cannot tax the poorest unethical and unenforceable. The old protestations last month, it is incon- Americans, those least able to shoulder rules imposed a standing obligation— trovertible that this bill uses taxpayer additional taxes, in order to shower from the execution of the fee agree- dollars to pay off trial lawyers. This this tremendous amount of money ment to the remittance of the fee—to use of taxpayer dollars is an unaccept- upon the trial lawyers of the Nation. conform the fee to fiduciary principles. able diversion of public funds. The At- I thank the Chair. The more recent Model Rules, in fact, torney General of Texas conceded to Mr. President, I yield the floor. strengthened this limitation and re- the New York Times on May 27, 1998 Mr. SESSIONS addressed the Chair. placed the prohibition on ‘‘clearly ex- that federal funds will be used for part The PRESIDING OFFICER. The Sen- cessive’’ fees with a ban on ‘‘unreason- of the $2.3 billion payment for lawyers’ ator from Alabama. able fees.’’ Mr. President, if there is fees. Mr. SESSIONS. Thank you, Mr. some semblance of ontological cer- Indeed, Mr. President, the bill per- President. I appreciate very much the titude to the definition of ‘‘reason- mits the use of revenues from the Na- conviction and hard work done by the able,’’ then the Senate will enact this tional Tobacco Trust Fund to pay trial Senator from North Carolina on this amendment to amend these contingent lawyers’ fees. In fact, 40 percent of important issue. It is not a political fee contracts. Trust Fund revenues are sent to the issue, although I think it could become These lawyers stand to collect un- States for Medicare expenses, but half one as time goes along. It is a question imaginable rewards—billions of dol- of this sum is untethered. There is a fi- of right and wrong. It is a question of lars—without commensurate risk. nite pot of resources from the tobacco just how rich persons can get with the These fees and the underlying contin- companies, so the billions of dollars money that should be available to ben- gency fee contracts are thus unreason- that will flow to trial lawyers under efit children and the health care of able under any appropriate standard. the McCain bill will be available for Americans. The most logical standard, of course, state public health initiatives if Con- So I think we have an issue of great is to look to comparable work. The gress passes the Faircloth Cap. importance. I think the Senator from payments to the defense lawyers— In response to some of the other con- North Carolina is also correct when he those lawyers who analyzed and con- cerns voiced on the floor last month, I says that we came here a few days ago tested the same issues—are thus the made some changes, which I am con- and we talked about a $250 per hour most appropriate standard. It is clear fident will alleviate the concerns of containment of attorney fees and they that the proposed caps in this amend- some Senators. said that was not enough. So we have ment far exceeds the fees for defense This version of my amendment elimi- attempted, again, to come up with a lawyers. nates the reports to the Judiciary bill that will pass muster in this body, I summarize my position as com- Committees, and it simply permits the that will have support from both sides parable pay for comparable work. judge assigned to the tobacco case to of the aisle, Democrats and Repub- The contingency fee structure of determine fees. Judges routinely re- licans, with the kind of fees that no- these contracts further deepens this view petitions for attorneys’ fees and body can object to, that are rational ethical morass. The contingency fee ar- expenses, so this will not present any and just and fair and quite generous, rangement earmarks a percentage of difficulties, and I am confident that it and will, in fact, make multimillion- the judgment to the lawyer without is the most prudent route for resolu- aires out of many, many lawyers. limitation. These funds are, quite sim- tion of these fee disputes. I do not believe and I resist the sug- ply, diverted from the victim to the Mr. President, a spokesman for Pub- gestion that this capping of these fees lawyer. lic Citizen, the group founded by Ralph in this litigation is somehow an attack June 11, 1998 CONGRESSIONAL RECORD — SENATE S6159 on attorneys and an attack on the con- lion. He doesn’t exactly need money. This is ida. We will take 25 percent of what- tingent fee contracting in general. It his multimillion-dollar house in luxurious ever we recover. And then they go in has nothing to do with that. It involves Palm Beach right next to the ocean. The and change the law and it becomes a only tobacco litigation—tobacco litiga- house is so huge, it looks more like a palace. slam-dunk lawsuit and they want 25 Even his Rolls Royce and his Bentley live in tion and legislation that was brought a garage that’s bigger than many houses. percent of it. Then they come to Con- to the U.S. Senate. And we were asked Montgomery got this rich suing car makers gress and say, well, we have some prob- to pass legislation on it. It spun out of and hospitals and insurance companies.’’ lems with just suing. We need the Con- litigation. It certainly has not been The interview with Bob Montgomery gress to pass global legislation to con- completed. None of the verdicts have was right there at his house. He de- trol this whole area of the law but been affirmed on appeal. Other cases scribes his lawn. don’t control our fees. You can control have just gotten started. And we in the So this is my putting green, and this is my everything else. Tell the tobacco com- Federal Government are about to pass sand trap. And what I do is I have these panies they are violating their con- legislation that could, in fact, termi- balls, and this is where I drive them: tract, but you can’t violate our con- nate all of that and bring it all to a JOHN STOSSEL: ‘‘Out into the water.’’ tract, not ours, because ours is sac- conclusion. The trial lawyers who had BOB MONTGOMERY: ‘‘Out into the water.’’ rosanct because we are lawyers. We are contracts, some of whom have done lit- JOHN STOSSEL: ‘‘The inside of the house is lawyers. That is our business and you even more grand. Montgomery has a vast art tle work, on a contingent basis, now collection.’’ can’t violate our contract. want to be paid billions of dollars in Stossel. This is his quote. Ladies and gentleman, we are talking fees. Perhaps 20 or more attorneys will Why do private lawyers gets so much of receive $1 billion in fees. about a lot of money. We are talking the State’s money in the first place? When I would just like to point out how about hundreds of millions of dollars, this construction company got the contract much $1 billion is. This Nation spent not just $1 million. One million dollars to replace this Florida bridge, they had to $450 million last year on diabetes re- is a lot of money. A million dollars. It compete against other construction compa- nies. There was competitive bidding. To win search. The Alabama general fund is an American dream to be a million- aire. We are talking billions, a billion- the job, they had to show they were qualified budget for the entire State, apart from and submit the lowest bid. All States have education, is less than $1 billion. aire. Mr. Stossel goes on. He talks about such rules to prevent politicians from fun- So we are talking about huge sums of neling projects to friends. But that’s not money by any standard, the kind of how they were selected. How do people what happened with the lawyers. Here, Fred money that we have never seen before. get selected to file these lawsuits? Did Levin called some friends. You picked the These are the largest fees ever awarded they bid on it? Did they go out and say dream team. in America, many of them for litiga- what lawyer will take this lawsuit and Then they interviewed Professor Les- tion only a few months old. It is ‘‘un- what kind of rate will you give us and ter Brickman, a law professor at conscionable,’’ as a judge in Florida let’s evaluate the best bid? Cardozo School of Law, an outstanding has said, and it cannot be allowed to STOSSEL. Friendship starts to explain how professional who studied legal fees and some of these private lawyers were selected continue. how they are awarded for a number of and ended up with a contract that says each years, and asked Mr. Brickman about I hope this very generous legislation is now entitled to hundreds of millions of that allows the lawyers to state their dollars. It began four years ago when Levin it. case for up to $1,000 an hour in fees will came up with a scheme to use Florida’s legis- Mr. BRICKMAN: It’s an outrage. It’s more be the kind of amendment in which ev- lature to make it easier to win a suit against than greed. It’s a scam. erybody in this body could join. big tobacco. Those are strong words: ‘‘It’s more I want to note why someone could They interviewed Mr. Levin, a fine than greed. It’s a scam.’’ not feel comfortable with that. lawyer. I had occasion to meet the JOHN STOSSEL. Law Professor Lester Let me share with this body a report man, a skilled attorney, and he was Brickman, who’s an expert on legal fees, says from ‘‘20/20’’ that was done recently in- very, very frank about what happened. it’s not right for a Governor to hand over such a potentially lucrative case to a friend. volving the Florida litigation. This Mr. LEVIN: I took a little known statute BRICKMAN. There are politicians involved will explain how that litigation pre- called a Florida Medicaid recovery statute— who are stroking the backs of lawyers be- vails, just how much was involved, and This is his exact quote— cause lawyers have stroked their backs be- how much the attorney gets out of it. changed a few words here and a few words fore and may yet stroke their backs again. It began with Hugh Downs. This is there, which allowed the State of Florida to So I think the public perception here, which what he said. sue the tobacco companies without ever is probably pretty accurate, is that this What is your time worth? How does $7,000 mentioning the words ‘‘tobacco’’ or ciga- smells. an hour sound? That’s what some lawyers rettes. The statute passed in both the—the STOSSEL. However it smells, the deal is want to be paid for their work on Florida’s House and the Senate. No one voted against now mostly done. Its main accomplishment suit against the tobacco industry. Each and it. is a huge transfer of wealth from not tobacco every one of them could become a million- JOHN STOSSEL. Well, did people know what companies—they’ll just raise the price—but aire many times over just from this one case. they were voting for? from today’s smokers, who will give it to So did they really earn their fee? LEVIN: No. And if I had told them, they’d State treasuries with a huge cut going to have stood up and made a—you know, they’d lawyers like Bob Montgomery. It’s like an John Stossel tells us about it. have been able to keep me from passing the old boys’ scam. You and your buddy, the John Stossel: ‘‘The children are supposed bill. Governor who sleeps in your house, do your to benefit * * * ’’ JOHN STOSSEL. This made the suit much little deal together. You get rich. You know that we have heard a lot of more winnable? John Stossel says: Mr. LEVIN. Oh, God, it meant it was almost talk about children and helping chil- The taxpayers get burned. The smokers get a slam dunk . . . dren. Let me ask this question: Will al- burned. lowing an attorney to become a billion- Oh, this is tough litigation. The chief Finally, Mr. Stossel points out—I am aire help children? Could that money plaintiff lawyer who wrote the bill to quoting him now— make the suit possible in Florida said be used for other antismoking pro- Finally, another clever twist you might grams, or tax reductions for the Amer- it wasn’t tough litigation; it was a have missed in the tobacco deal is that usu- ican people? It certainly could. slam-dunk because he changed the law ally when Americans want to tax some- John Stossel: ‘‘The children are supposed in a way that nobody knew what he thing— to benefit from new money from was doing to create a lawsuit that had This is very important, and I will antismoking programs. And later the Gov- not been possible before. share with you my personal experience ernor invited in some children and dummied Here, Mr. Stossel goes on. less than 2 years ago when I was attor- up a check to celebrate the first $750 million Am I missing something here? The con- ney general of Alabama— payment. But now it turns out that the Flor- troversy’s become should the dream team— we vote on that. The legislature decides on ida taxpayers may not get as much of that That is talking about the lawyers— money as they thought because Florida’s behalf of the people, but not here. Here, a get billions from the 25-percent deal? lawyers are in a legal battle over how much Governor— money they should get. Montgomery says They had a contract, you see. We will Sometimes in other States the attor- they deserve $2.8 billion. That’s right, bil- sue these people for the State of Flor- ney general— S6160 CONGRESSIONAL RECORD — SENATE June 11, 1998 and some lawyers decided, in secret, that when they settle a case, don’t care magazine that lists the richest people smokers should pay the State and lawyers a whether the money they pay is called in America. We counted 60 billionaires lot of money. tobacco fees, lawyer fees or anything in America. We are talking about cre- And then Mr. Levin explains why it else. There is so much money, they are ating numerous new billionaires out of is such a cool political deal and why willing to pay. And so they are per- this one lawsuit—some of them have many of the people in this body like it, fectly happy if they can pay off the not filed a case this past year—will be those fellows and ladies who favor tax lawyer and give him a lot of money for making $1 billion. That is just not ac- increases and tax and spend and tax their fee to get them to agree to the ceptable. That just cannot be. and spend. And people are getting mad whole settlement. It doesn’t bother So I appeal to all the Members of this about it. They are getting alert to it. them in that circumstance. body, whether you are Democrat or Re- They are objecting to it. They are see- So there is an unhealthy relationship publican, to look out for justice, to ing how taxes get slipped in through there, and it is something good lawyers look out for fairness, to look out for this backdoor and that backdoor. It is have to guard against at all times. You decency. This is beyond making a good not popular, and many of them are los- have to guard against that because it fee. I am quite willing to have these at- ing their places in Congress and in the can even corrupt your judgment be- torneys make a good fee. We will let State legislatures because they are cause your money may be paid from them make $1,000 an hour and double voting for too many taxes. That is not the person you are supposed to be suing their expenses that they have invested good. and your fidelity, your loyalty, your in it. I am willing to let them. But I So Mr. Levin tells why this is such a integrity is due to the people you are am telling you, that is more than I good deal. representing. really feel is necessary. But I want to The tobacco companies don’t care. They That is an unhealthy relationship. I gain support for this legislation. I can either pass it on as a tax, or they can just say to you this money absolutely think it is absolutely critical that we pass it on as an increase in price, and to- available to be paid to the Government contain these fees. bacco companies settle with the Govern- to be used for tax reduction and the Where is the money coming from? Is ment. Beautiful. child smoking reduction effort and it from the waitress? the construction JOHN STOSSEL. What’s the difference? You’re still paying 60 cents more for your health care and health research, it will person? the businessman? the gas sta- cigarette? not be used for that; it will be sent to tion owner? the secretary who LEVIN. But it’s the tobacco company they the attorneys. smokes—that is who is paying it—to can get mad at. You don’t hold that against Let’s talk about something else. In give it to a lawyer who already has a the Governor. Mississippi, the case there was an in- garage with his Bentley in it, bigger You see, make the public get mad at teresting case. In Mississippi, the case than somebody’s house, and who prac- the tobacco company for raising the was brought before a single judge in tices golf by driving golf balls out into price, and the politician says, We Mississippi, and the case was filed in the Atlantic Ocean? That is what we didn’t raise taxes. It was the tobacco equity. It was not a jury trial, it was in are talking about—a wealth transfer company that raised the price of the equity. Many States still have a dis- from decent Americans who trust their cigarette. You get the deal? Good poli- tinction between law courts, legal Government. They trust us to treat tics. Mr. Levin just flat said it. courts, and equity. Historically, in them fairly, to pass legislation that John Stossel concludes: England, equity courts were run by the gives them a fair chance. We are taxing So everybody wins. Well, not the smokers, church and the law courts were run by them to pay for this kind of thing? but the politicians win, the tobacco compa- the king. In matters of divorce and Wrong. It is unjustifiable, unconscion- nies win, the State and certainly the law- family, relief of that kind was done in able, as a judge in Florida has said. yers. equity. They came out with an equi- How did it happen? How did this all Hugh Downs concludes the report: table doctrine of unjust enrichment happen? I want to tell you how it hap- That’s really outrageous, isn’t it? And Bob and pursued this case for a number of pened. I will tell you exactly how it Montgomery may well get his way because years, and under a theory that the to- happened because I was, in a way, last week an appellate court judge reopened bacco companies were unjustly en- there. I was attorney general of Ala- the door for what could be a big payday for riched, they made their recovery. So, bama less than 2 years ago, and I was these guys. hundreds of millions of dollars will be approached by a group of attorneys. And Barbara Walters concluded. paid out of that Mississippi case, based They said, ‘‘Well, Jeff, we would like to As Mr. Montgomery said, ‘‘Oh, yeah.’’ But on that. talk to you about hiring us to sue these you know Senator Crist is trying to have a In Texas, the fee came down to be tobacco companies. We are working bill that caps the amount they get paid at $2.3 billion for the attorneys involved with a group of lawyers around the $250,000. But even that’s not bad money. in that case. I believe the firm that was country, and we have this theory, and Two-hundred-fifty thousand dollars involved in that had four partners, five you can pay us 25 percent and we will is not bad money either. I say that to attorneys in that firm, who will split just file this lawsuit for you. I know you. $2.3 billion—quite a lot of money. your attorney general’s office doesn’t I went through that report because, Professor Brickman of the Cardozo have a lot of money, and we’ll just fund Mr. President, it shows how this thing Law School has testified, I believe—as that for you. You just give us 25 per- has developed and that there is a sense Governor George Bush of Texas is furi- cent of whatever we recover.’’ and a tinge of corruption in the way ously and aggressively doing every- And I said, ‘‘What’s your legal the- this was done. thing he can to undermine and defeat ory? I don’t think I can file a lawsuit, Another thing that was very these claims for this huge amount of according to the ethical rules of law, if unhealthy is how did the settlements money—Professor Brickman has testi- I don’t believe it’s a good lawsuit.’’ So occur and how were they justified? fied that he figures the trial lawyers we spent a good bit of time talking Well, the lawyers said for the tax- were asking for at least $92,000 per about that first. When they got payers and public citizens not to worry hour. I didn’t make that up. This is a through, I said, ‘‘What you are telling about it, how we got this case settled Cardozo Law School professor saying me is, this is not an established prin- and where it leads, because these fees these lawyers were asking $92,000 per ciple of law but you want to expand the are not paid by the State; they are paid hour. law and go further.’’ by the tobacco companies. They agreed Stewart Taylor, writing for the Legal And they said, ‘‘Yes, that’s correct. to pay our fee, see. I agreed with my Times—he also is a senior writer for It hasn’t been a proven theory. But we tobacco company and they pay my fee. the National Journal—estimates that have this new theory. We think we And it is not coming from the tax- the total attorneys’ fees will amount maybe can prevail on this. It is very payers. to $5 billion per year and quotes Pro- popular today. Nobody likes tobacco. Now, I have been a lawyer for a good fessor Brickman as saying it will cre- We believe we might just win.’’ while. I have litigated a lot, and most ate 20 to 25 billionaire attorneys. I am So I told them, ‘‘No, I don’t think so. business people understand money and talking about a billionaire. I had my I think I’d rather have you go ahead they know that the tobacco companies, staff pull up—I think it is Fortune with your suits, and I’m not going to June 11, 1998 CONGRESSIONAL RECORD — SENATE S6161 spend 25 percent of the recovery. If you brainwork, and the local guys file the Texas, whereas the trial lawyers spent prevail in Mississippi or Florida or pleadings and handle the PR and the $17.3 million. The automobile compa- other States and you establish a cause political stuff and take care of the at- nies in Alabama, California and Texas of action, I may consider joining it. torney general, and make him look spent $3,500. But I won’t need you then, because I good. That is how it happens. That shows you what has happened have lawyers on my own staff and they And then, boom, after Mississippi— here. I suggest that we need to rise can handle the litigation, thank you.’’ they had that unique single judge in above special interests. I believe every They didn’t want to do that. They Mississippi—you had the change of law Member of this body has an obligation persisted and told me certain names of in Florida, the tobacco companies lost to his constituents—to that secretary, attorneys that they wanted to partici- those big settlements, and they just to that waitress, to that gas station op- pate. One of the best known attorneys collapsed and they agreed to pay every- erator, to that farm equipment deal- in Alabama, Jere Beasly, was a name body. Listen to me. In some States, the er—if he takes their money and in- they suggested to me—that he would attorneys had done little more than creases taxes, to not give it away to be part of it. And the person making file the lawsuit and they are now people who live in mansions who prac- the proposal to me, it wasn’t Hugh claiming 25 percent, 15 percent, of bil- tice golf by driving their golf balls out Rodham, but he was the Lieutenant lions of dollars in recovery. into the ocean, and that is what we are Governor of Alabama who was a part- Why? Because they had a contract. talking about. time Lieutenant Governor and a law- They signed a contract with the attor- There are a number of other things yer. He was coming in as a private at- ney general of Alabama, Georgia, what- that I can mention, but I see the Sen- torney, and he was going to make part ever State. That is not good. That is ator from Texas is here. I am pleased of the fee out of the case. not a good process. I will tell you with to yield the floor, Mr. President. I objected to all of this—by the way, absolute certainty and conviction that Mr. GRAMM addressed the Chair. the Lieutenant Governor has great money paid to those lawyers is money The PRESIDING OFFICER. The Sen- power on legislation. We have had a lot not available to children, to ator from Texas is recognized. of efforts to reform tort laws and law- antismoking programs in America. It Mr. GRAMM. Mr. President, let me suits in Alabama, and they have died in was simply allowed to go to the attor- first say that our dear colleague from the State Senate, where he presides neys. Alabama, Senator SESSIONS, is a fresh- over the State Senate in committees Why would not my brethren on the man Member of the U.S. Senate, and I that he set up and established. He was other side of the aisle, who profess to am very proud of the leadership that he popular with the trial lawyers, and he be so concerned about children, be in- has provided on this issue and on other asked me to file the suit, and I said no, volved in this? They have accused issues. I think he is a testament to the I didn’t think that we ought to do that. those who have opposed this tobacco fact that we have good people in the And he said to me, ‘‘Well, you can legislation consistently of being tools U.S. Senate, and I am very proud of hire some of your law firms. You can of big tobacco—‘‘Oh, they’re just him. hire some of your buddies, your Repub- bought and paid for by big tobacco.’’ Mr. President, when we tell people lican law firms—cut them in on the I will say this, I took not a dime that we are debating a bill that is deal. Why don’t you do that, Jeff? That from tobacco. I rejected tobacco going to set in place a procedure will be fair, won’t it?″ money. I have not taken it and will not whereby attorneys are going to receive I am telling you, this is not good take it. I don’t think at this stage of $92,000 an hour, they find it hard to be- business that we are involved in here. the game we ought to be taking money lieve. But let me just read from an ar- There is an element of greed that goes from tobacco. I realized we were going ticle by Robert J. Samuelson in the beyond what is normal. to have a contested issue concerning Washington Post: So, anyway, that is the way that tobacco, and I wanted to keep my The hourly rates strains belief. Lester went. They go around the States, then, record clear, so I have not taken any. A Brickman of the Cardozo School of Law, an approaching attorneys general with lot of other Senators on both sides of expert in fees, estimates that the Texas law- this kind of pitch. As it turns out, one the aisle don’t take tobacco money. yers spent, at most, 25,000 hours on their attorney is apparently involved in liti- Mr. GRAMM. Will the Senator yield case which never went to trial. A $2.3 billion gation in 30 States and another attor- on that point? settlement values their time at $92,000 an ney group is involved in litigation in 28 Mr. SESSIONS. Yes, I yield to the hour. States. What does that mean? What Senator from Texas. This is absolutely predatory. It is to- they do is, they have this theory. They Mr. GRAMM. I wonder if those on the tally unfair to be taxing my 85-year-old have come up with a theory of litiga- other side of the issue are taking mother, because she started smoking 65 tion that can make billions of dollars money from plaintiffs’ attorneys? years ago, $1,015 a year, which is what in recoveries. They go into a State and Mr. SESSIONS. Well, you have asked she will pay under this bill because she get a group of local people, and they an absolutely important question. is not going to quit smoking ciga- also bring in the President’s brother- Those who have been opposed to this rettes. It is unfair to tax her to pay a in-law, Hugh Rodham, make him a $50- legislation have had their integrity plaintiff’s attorney $92,000 an hour. It million man because he sits in the questioned and it was suggested that is predatory and it is outrageous, and room and reads a novel while they are they are bought by tobacco. I have something needs to be done about it. settling the case. Let him have a little somewhere in this stack a little chart The Senator from Alabama is not bit, too. Make him happy. Maybe it that indicates something about politi- proposing that we be tightfisted with will make the President happy. Maybe cal donations. plaintiffs’ attorneys. In fact, he is pro- he will be supportive of us when we From the years 1990 to 1994—I want posing that they be paid $1,000 an hour. come in with the legislation. We cut in the Senator from Texas to understand How many people in America would the Attorney General of Alabama; this—plaintiffs’ lawyers in three figure that they were being cheated if maybe he will continue to be friendly States—my State and your State being they were getting $1,000 an hour in a to us in the State legislature. What two of the three—Alabama, California fee for work that they had done? I would his fee have been? I don’t know. and Texas, spent $17.3 million on politi- don’t think many people in America They go around and they get inves- cal contributions. During that time, would think that we are cheating law- tors. People, basically, as I would un- the Democratic National Committee, yers by requiring that they be com- derstand it, buy shares. They go out to in all 50 States, spent $12.4 million. pensated no more than $1,000 an hour a number of the big name plaintiff During that time, the Republican Na- for work that he had done on these firms in this town, community or tional Committee, in all 50 States, cases. State, and they get them to agree to spent $10 million. During that time, big But when asked about $1,000 an hour, put up so much of the money. They put oil in Alabama, California and Texas a prominent attorney, who was quoted the money in. Each one of them has a spent $1.7 million. I know oil is a big in the Washington Times, scoffed and share. These major law firms that are industry in Texas. They only spent $1.7 said, ‘‘That would hardly pay for tips doing most of the work, they do all the million in Alabama, California and for my house staff.’’ S6162 CONGRESSIONAL RECORD — SENATE June 11, 1998 ‘‘Hardly pay for tips for my house Why are they so silent? Who took $92,000 an hour, let us have a provision staff.’’ away their tongues and their pens to that simply says you cannot get more Our colleagues on the left are very not write about the millions, tens of than $1,000 an hour in these cases. fond of talking about how they are try- millions, perhaps hundreds of millions Let me offer right now, if any of my ing to protect average citizens. Our of dollars that plaintiffs’ attorneys colleagues want to come to my State President is always talking about his contribute to the Democratic National and go with me into a local restaurant position as champion of the average Committee, and who contribute to can- in the morning or go to McDonalds— person. But yet what is happening here didates who oppose this amendment and let us try to gather up a crowd—I is our President is supporting provi- and who support this bill? would like them to explain why those sions that allow attorneys to be paid Now look, I don’t get into the busi- folks ought to be taxed on their ciga- $92,000 an hour. Many of the Members ness of trying to question people’s mo- rettes or their chewing tobacco so that of the minority here, the great major- tives. But the point I want to make is we can pay attorneys $92,000 an hour. If ity of them, are supporting provisions this: If these groups are going to run they can do that in Lubbock, for exam- where attorneys will be paid $92,000 an around trying to tag Senators as being ple, if they can sell that in Lubbock, hour. And our colleague from Alabama the spokesmen for some interest, I TX, then I would come back and review is saying, let’s set a cap in this bill think that is perfectly legitimate. It is my position on this issue. that says that attorneys on these cases a tactic that I do not agree with, but it But let me predict there will not be will be paid no more than $1,000 an is perfectly legitimate. But why are anybody to take me up on this because hour. I believe that it is totally out- they silent on this issue? Why are they anybody who would vote for this would rageous that we cannot see this amend- silent on the source of the contribu- be ashamed for people to know it. But ment adopted by 100 votes in the U.S. tions going to some of those who sup- we are going to vote on it. And we are Senate. port the bill? going to vote on it over and over and I do not see how anybody can go back What we have here is a bill that has over and over until we do something home and say we are going to tax Joe but one constituency. And that con- about this predator behavior and this and Sarah Brown—a waitress and a stituency reminds me of a large group clear abuse of ordinary working people truck driver. Seventy-five percent of of vultures who want to bring down in America. the money we are going to collect in this industry and then feed on the car- I thank the Chair and I thank my these taxes on cigarettes come from cass. And the biggest appetite, in this colleague. Americans and families that make less case, belongs to the plaintiffs’ attor- Mr. MCCONNELL addressed the than $50,000 a year. We are going to neys who are going to make $92,000 an Chair. reach in their pockets and take their hour on this bill. The PRESIDING OFFICER. The Sen- money, and we are going to pay $92,000 So I hope my colleagues will not ator from Kentucky. an hour to plaintiffs’ attorneys. It is stand up and say, ‘‘We can’t give a tax Mr. MCCONNELL. Before the Senator predatory. It is outrageous. And some- cut and eliminate the marriage pen- from Texas leaves the floor—if that is thing has to be done about it. alty. We don’t have enough money to the direction in which he is headed—I Is there no shame in this whole proc- do that.’’ Well, we have enough money want to thank him for his important ess? Is no one embarrassed by the fact for attorneys to make $92,000 an hour. contribution to this. This bill is, more that we are allowing this piracy to go As long as we have enough money to do than anything else, I say to my friend on? I believe it is imperative that this that, we have enough money for tax from Texas, about lawyers, about rais- amendment be adopted. I want to cuts. ing taxes on working-class Americans pledge that if this amendment is re- We are going to see an amendment and about unjustly enriching a bunch jected, that we are going to come back offered in a couple of days to try to do of soon-to-be billionaire lawyers. and raise this figure and do it again something about teenagers drinking. I I think we ought to call them the and again and again and again until we hope it is going to be a bipartisan ‘‘sultans of smoke,’’ because they are cut these fees off at something less amendment. I want to predict right going to be as rich as sultans if we do than $92,000 an hour. now that the proponents of this bill not pass the amendment offered by If that is not enough, or if that is no will stand up and say, ‘‘We don’t have Senator FAIRCLOTH, and spoken so elo- more than enough to tip your house enough money to do anything about quently on behalf of by the Senator staff, then I want people to explain to teenage alcohol use. We are spending from Alabama, Senator SESSIONS, and people back in their States about how our money on teenage smoking,’’ which Senator GRAMM. we are imposing a tax to raise $600 bil- is, in terms of public concern, a much Mr. President, we have had a lot of lion and turn around and let plaintiffs’ less concern than teenage drinking. debate over the past few weeks about attorneys make $92,000 an hour on the But they are going to say, ‘‘We don’t what provisions of this bill are most deal. I would be embarrassed to say have the money for it.’’ outrageous. And there is a lot about that I was for allowing that to happen. Let me suggest that we begin with this bill that is outrageous. I ask my I do not understand how anybody—any- $92,000 an hour legal fees. There is a colleagues—which provision is the body—could oppose this amendment source for money. Let us take the most outrageous? Some say it is the and go back home and explain to peo- money from that, and let us use that terribly regressive tax on low- to mid- ple what they are doing. money on programs designed to reduce dle-income Americans that is the most Let me also say—this is something I teenage drinking, drunk driving, things outrageous. And that certainly is out- do not do, but I want to respond to peo- of that nature. rageous. Others say it is the unconsti- ple who do it—one of the games that is I know my colleague from Kentucky tutional backdoor tax known as the played now in Washington is that when wants to speak. Let me sum up and look-back penalties. Still others say it people cannot debate the issue, they stop. is the unconstitutional advertising re- try to attack your integrity. I am proud of our colleague from Ala- strictions. We have all these little groups bama. He speaks with passion and with Here we spend 3 weeks on the floor of around town that try to find somebody clarity, and he is absolutely right. the Senate raising taxes on working- who maybe runs a store that sells to- There are no other terms for these kind class Americans and taking away the bacco products—a 7–Eleven store for of settlements other than predator and constitutional rights of legal compa- example—who contributed to Senator clear abuse of the system. We have in nies. SESSIONS’ campaign or contributed to this bill a provision that sets out a I thought long and hard about which Senator MCCONNELL’s campaign or my commission made up of lawyers to re- provisions of the bill truly deserve the campaign or to the campaigns of other view lawyer fees. It is not an issue over trophy for the biggest outrage, in a bill of our colleagues who are here on the whether we are going to have the Fed- replete with outrages. The hands down, floor, and they say, ‘‘That was a to- eral Government involved. There is a slam-dunk, home run winner has to be bacco contribution.’’ But it is very in- provision in the bill that guarantees the lawyers’ fees—the lawyers’ fees. teresting to me that when we are de- that. The national tobacco settlement has bating $92,000 an hour for plaintiffs’ at- But rather than letting lawyers over- now turned into the national trial law- torney fees, where are these groups? see fees for lawyers so they get the yer enrichment deal. Other speakers June 11, 1998 CONGRESSIONAL RECORD — SENATE S6163 have referred to Robert Samuelson’s to take us for the ride of our lives. and grotesque payment of attorney article in the Washington Post of June These soon-to-be ‘‘Sultans of Smoke’’ fees. Worst yet, these outrageous pay- 3. Senator GRAMM referred to it exten- are looking to receive as much as $2.8 ments will continue for at least the sively, and I think this article sums up billion. One of the more eager Florida next quarter century. much of what is wrong with the lawyer sultans has already sued for his $750 Every lawyer in this deal, and, in fees authorized by this bill. million share of the pot. fact, every lawyer in this country, More than anything else, what has We don’t even have to make assump- knows that the rules of professional become the hallmark of this bill—full tions in Florida because a judge has al- conduct preclude them from charging of outrages—is the enrichment of the ready done the math for us. The judge fees that are unreasonable and clearly plaintiffs’ lawyers of America. We are looked at the greedy grab by the law- excessive. In fact, no attorney will dis- going to give a self-interested bunch of yers and concluded that the demands pute the fact that a judge could step in plaintiffs’ lawyers $4 billion a year for for attorney fees, as the judge put it, today and strike down any and all of the next 25 years—$4 billion a year for ‘‘Simply shock[ed] the conscience of these excessive fee grabs. It is abso- the next quarter century! This is an the court.’’ The judge concluded that, lutely ludicrous to argue that the very outrage. No bill ought to leave the Sen- even if the lawyers worked 24 hours a Federal Government that is approving, ate—not now, not tomorrow, not ever— day, 7 days a week, including holidays, codifying, and regulating these deals is that does not address this issue. for over 3 years, they would earn over somehow unable to touch these out- Senator GRAMM called it piracy. $7,000 an hour. rageous fees. Maybe that is even too kind of a word. In fact, we know the actual hourly In fact, let me tell you a little bit Four billion dollars a year. The only wage of the Florida lawyers is im- about the nature of contingency fees, person in the world I can think of that mensely higher because no one can se- as explained by George Will in a col- has that kind of annual take, Mr. riously contend that any lawyer, much umn earlier this year. George Will President, may be the Sultan of less every lawyer, worked 24 hours a wrote: Brunei, the wealthiest monarch in the day, 7 days a week, on tobacco litiga- Among the things that make Congress, world. tion for 31⁄2 years. among others, irritable about the settlement So what we are doing here is using But it gets better, Mr. President. The are the stupendous jackpots, totaling per- the power of the State and the Federal final stop on our sultan preview tour is haps $45 billion to $55 billion, that may come Government to transfer private wealth Texas. Senator GRAMM referred to to lawyers hired by State governments on and public dollars to create a bunch of Texas. A handful of lawyers in Texas contingency-fee contracts. little trial lawyer sultans, the ‘‘Sul- A Florida judge, who rejected the State’s are going after $2.2 billion. Let’s see tans of Smoke.’’ We are going to create contingency fee agreement as ‘‘unconscion- what kind of hourly fee the lawyers the sultan of Mississippi, the sultan of able and clearly excessive,’’ calculated that want in Texas. In the Texas case they Texas, the sultan of Florida, just to the lawyers would be paid an hourly rate of did not go to trial, so it is reasonable $7,716—assuming each lawyer billed was name a few. working 24 hours a day, every day, during Let’s take a little trip around our to assume that Texas put in far less time than Minnesota. the 42-month case. Some lawyers around the currently upside-down world and pre- country probably stand to be paid hundreds view our future ‘‘Sultans of Smoke.’’ Again, assuming that 25 lawyers worked a total of 25,000 hours, then of thousands of dollars per hour of actual First, let’s go to Minnesota where a work. each of these lawyers would earn $88 few lawyers are reportedly seeking to Further quoting George Will in his rake in approximately $450 million. million—$88 million. What kind of hourly fee is that for the ‘‘Sultans of column: The lawyers in Minnesota actually Contingency-fee arrangements, under took the case to trial, so it is reason- Smoke’’ in Texas? It is $88,000 an hour, Mr. President, $88,000 an hour. Not bad which a lawyer is paid nothing if his side able to assume they employed more at- loses and a fixed percentage of the settle- torneys and put in more hours than when you consider that even the aver- ment if his side wins, have traditionally been lawyers in other States. age doctor in America only earns $96 deemed unethical. This is because they give So let’s assume that 50 lawyers an hour. a lawyer a financial stake in the outcome of worked a total of 100,000 hours. These If the Texas grab is not outrageous a lawsuit, which . . .‘‘creates an inherent 50 lawyers would each take home $9 enough, this excessive, grotesque sum conflict of interest with the lawyer’s role as million for his or her labors—$9 mil- for attorneys in Texas will have to be an officer of the court.’’ Contingency fees lion. What is the hourly fee for the fu- paid out of Medicare money. The New still are unlawful in Britain and most of the rest of the world. ture sultans of Minnesota? That works York Times recently reported that the out to about $4,500 an hour—not bad Texas attorney general said publicly Let me repeat that, Mr. President. when you consider the minimum wage that part of the attorney fees will be ‘‘Contingency fees are still unlawful in in America is $5.15. So the plaintiff’s paid by the Federal Government. And Britain and most of the rest of the lawyers in Minnesota will make $4,500 guess where it comes from? That is world.’’ an hour. right, the Medicare money we are send- The United States long ago made a narrow Now, let’s stop off in Mississippi. The ing to the States in this bill. ‘‘necessary evil’’ exception to the general latest reports out of Mississippi are So I ask you: Who do we pay—the proscription of contingency fees in order to help give poor people access to the courts. that the lawyers are seeking $250 mil- sick and the elderly, or the greedy and the lawyerly? And the American Bar Association’s Code of lion. The reports indicate that the $250 Professional Responsibility stated that ‘‘a million will go to a handful of future Now the friends of the trial bar are lawyer generally should decline to accept ‘‘Sultans of Smoke.’’ Assuming that 25 arguing that the future ‘‘Sultans of employment on a contingent-fee basis by one lawyers worked on these cases for Smoke’’ are expecting this money. We who is able to pay a reasonable fixed fee.’’ 25,000 hours, the Congress would be au- have heard that they are expecting this State government can pay such a fee. thorizing each lawyer to receive $10 money and, therefore, it wouldn’t be In other words, State governments million apiece as a result of congres- fair not to give it to them. could pay a reasonable fixed fee. sional action. I don’t mean to sound cold and hard- Mr. KERRY. Will the Senator yield? So let’s break that down on an hour- hearted, but I have absolutely no sym- Mr. MCCONNELL. I am sorry, I ly basis. If each of these lawyers pathy for any lawyer who thinks he de- won’t. worked 1,000 hours exclusively on the serves $88,000 an hour. Moreover, there The states’ tobacco lawyers demand, with tobacco litigation, that would enable is no reasonable expectation that any more brass than plausibility, that their fees the future ‘‘Sultans of Smoke’’ in Mis- Congress, in any State, or any nation, be treated as an island immune from Con- sissippi to earn $10,000 an hour. Now, would allow this band of trial lawyers gress’ general jurisdiction over the settle- that is a good day’s wage, especially to pull off such a scam. I repeat, these ment. when you consider that the average lawyers have no reasonable expectation Now, the Faircloth amendment lawyer in America only makes $48 an that public officials, elected to rep- agrees with Mr. Will’s analysis and hour. resent the best interest of the people, simply says that no trial lawyer’s Now, let’s stop off in Florida where a are going to stand by and codify a right sweetheart deal is an island. I firmly little band of trial lawyers are trying to receive an excessive, gargantuan, believe that we cannot settle these S6164 CONGRESSIONAL RECORD — SENATE June 11, 1998

State deals and create a sweeping Fed- Colorado Attorney General Gale Norton, The PRESIDING OFFICER (Mr. GOR- eral regulatory scheme for tobacco who also had the political backing of the TON). The Senator from Wyoming is without also regulating the fees. governor, had another motive: She said she recognized. Let me repeat something that others is philosophically opposed to her state using Mr. ENZI. Mr. President, I rise to contingency-fee attorneys because these out- support the amendment offered by the have forcefully said. No bill should side counsel are motivated by more than the leave the Senate of the United States pursuit of justice. Senator from North Carolina, Senator that does not deal with the unjust en- ‘‘We tend to be more objective than private FAIRCLOTH, and the Senator from Ala- richment of lawyers contained in this counsel who are employed on a contingency bama, Senator SESSIONS. I believe that bill. basis and who maintain their own personal the least we can do is assure that the Let me read another piece that financial interest in the outcome of the liti- tobacco legislation does not become a makes similar points. The article ap- gation,’’ said Norton, a Republican. ‘‘It gives lottery for trial lawyers at the expense peared in a home State newspaper, the them different motives.’’ of the American taxpayer. The state of West Virginia’s one-page con- We have been debating this for sev- Lexington Herald-Leader: tingency-fee contract agreeing to pay one- Question: If on election day you were eral weeks. It has been mentioned that third of the recovery, by far the largest con- asked to chose between a political candidate we have been debating it for several templated by any state, was thrown out of who promised to work for a reasonable sal- court as unconstitutional. weeks. Usually, when we debate for 2 or ary, and another candidate who wanted to be In arguing against the contract, tobacco- 3 days on a bill, my constituents start paid 25 percent of the government’s proceeds, industry attorneys suggested that it was un- calling and saying, ‘‘Why don’t you get an amount which could reach billions of dol- ethical because it compromised the inde- that wrapped up, over with?’’ I have to lars, which candidate would you vote for? pendence and impartiality of the quasi-judi- Many voters thought they were voting for tell you that those calls are not com- cial role vested in state prosecutors. the former, but are getting the latter. That’s ing in. There is a fascination with the ‘‘The litigation team is wielding the coer- because several dozen states have chosen to debate here—a fascination, an interest, cive, regulatory and punitive powers of the farm out legal work to lawyers who will be and a very deep concern, because this state,’’ tobacco attorney Robert King ar- paid not for the number of hours they work gued. Such a contract ‘‘permits the power of could be the precedent for a whole but a percentage of the proceeds from law- the state to be exercised by attorneys with a bunch of other kinds of products. There suits. direct financial stake in the exercise of that is an interest in the attorneys’ fees be- Advocates for trial lawyers give several power.’’ cause this could set a precedent for reasons why lawyers should be paid large contingency fees instead of for work per- The bottom line here is that the Na- other product attorneys’ fees. formed, like other state employees. tional Lawyer Enrichment Deal smells Why are we doing this as part of Fed- First, they say contingency fees are the like an under-the-table arrangement eral legislation? Well, if the States only way states can afford to hire top-notch cut in smoke-filled rooms. would have been able to resolve this all lawyers. Nonsense. Tobacco litigation pits 40 The states have made deals with on their own, the Federal Government states with extensive revenues (the Texas their lawyer friends to engage in what would not have been involved in it. But state government alone collected $ 40.4 bil- that is not the point where we are. We lion in 1996, which is about $ 4 billion more has been aptly referred to as ‘‘prosecu- tion for profit’’—and we can not simply are at the point where the Federal Gov- than the domestic and international tobacco ernment is going ahead on its own with revenues of the largest tobacco company, bury our heads in the sand and pretend Philip Morris, for the same year) against to- that we have no duty to regulate these a tobacco bill, not a tobacco settle- bacco companies who pay their lawyers by deals. ment. We are in the process of taxing salary or by the hour. If tobacco companies In the words of the Weekly Standard: folks in the United States who smoke. When we finish taxing those people in can do it, so can the states. Some have: Bribing judges was long ago made a crime. Maine has capped the fees for its lawyers at Bounty hunters were banished and state the United States, there are some out- $ 150 per hour, and Vermont’s lawyers, in the prosecutors put on salary for a reason—to re- standing attorneys’ fees that we will be case of a national deal, will be paid no more move any financial stake in their prosecu- paying out of the Federal funds. than $ 200,000. tion. Contingency-fee lawyers have a stake We have to be concerned about the * * * * * in litigation that reaches grotesque propor- money and how much money is going Private lawyers will likely reap tens of bil- tions. And now these lawyers are being depu- to the attorneys. This is not just a lions from tobacco settlements. After they tized by attorneys general to prosecute matter of letting the States do their do, won’t they try to keep this cash cow under the cloak of state authority. own thing. This is a case where the going? If lawyers can make billions saying When these lawyers are making large po- States said: We need to have your in- that states are due dollars for the adverse litical contributions to the attorneys general health effects of tobacco, won’t they want to who hire them to sue, in lawsuits that have volvement. And of course they do. It is say the same about junk food? Or liquor? Or contingency fees running literally hundreds interstate commerce. There are a fast cars? of millions of dollars, prosecution for profit whole bunch of constitutional issues The answer is: Yes. And that’s why private takes on a whole new dimension. Such con- that come into this that require Fed- profit-making has no place in government flicts of interest once were considered a eral participation. We are now in this decision-making. Government policies threat to justice. Indeed they were. Indeed Federal participation. We say: Compa- should be based on their merits, not on op- they are. nies, you reached an agreement, but we portunities to give private lawyers billion- So, Mr. President, I urge my col- don’t agree with your agreement. And dollar profits. leagues to support Senator FAIRCLOTH’s so we do our own thing and we start at Mr. President, I am proud to say that reasonable and fairminded amendment. $68.5 billion. We decided that wasn’t every state did not go out and cut a Frankly, I had hoped the previous enough money, and we raised it an- sweetheart deal with their trial lawyer amendment offered by Senator FAIR- other couple hundred billion dollars, contributors. Some states took the CLOTH at $250 an hour would be ap- and maybe a couple hundred million high road in this deal and refused to proved. But certainly, $1,000 an hour, dollars more than that. We are still allow the conflict-of-interest contin- when the average American entering coming up with ideas for spending gency fee arrangement to taint the the work force at minimum wage is money. That is easy. That is a normal deal. making $5.15 an hour and when the av- thing. When the family has a little Let me read to you a piece from the erage lawyer in America is making $48 extra money, they are always able to Seattle Times that explains the ration- an hour, is not unreasonable. figure out ways to spend it. ale of these states that took the road The amendment says it is perfectly But we are talking about taking less traveled: OK to make a great living in America— some of that money and giving it to Using the state’s own attorneys has per- as a trial lawyer or in any other legal people for a job that they did do. But mitted California Attorney General Dan occupation—but it is not OK to cut we are saying, if we are responsible for Lungren to claim high ground and dismiss sweetheart deals, ‘‘prosecute for prof- that money, we want to show respon- suggestions that the lawsuits were moti- it,’’ and use the massive, coercive, and sibility for that money, and we think vated by the plaintiff’s bar. The fact that we are not using outside punitive power of the State to transfer the responsibility for the money says counsel lends a lot more credibility to the le- private and public dollars to make a that an attorney shouldn’t get more gitimacy of these claims,’’ said Tracy Buck few friends into instant billionaires. than $1,000 an hour. Walsh, special assistant attorney general, I yield the floor. Again, I can tell from the people who who is managing California’s case. Mr. ENZI addressed the Chair. are getting hold of my office that they June 11, 1998 CONGRESSIONAL RECORD — SENATE S6165 think $1,000 is a bit too high. In fact, It is important that we reach a deci- served to the States. While we have one they think it is a whole lot too high for sion, that we put some limitations on wayward former attorney general who tax money to be collected from tobacco it, and that we keep people from mak- didn’t want to do anything, we have and given out to other people as a ing an unusually large amount from some outstanding attorneys general precedent for the United States—$1,000 the tax money of the lowest-paid who have done more—we are going to an hour. There are a lot of people in Americans. prove it—to save people from cancer my State who do not make that much That is where we are. A thousand dol- than Dr. Koop and Kessler combined. I in a month. They see that as a lot of lars is higher than I would like it to be, will get to that. money. I see that as a lot of money— but we are trying to find a range where But I want the Senator from Wyo- $1,000 an hour. people will say that is enough. We will ming to know that we have done just This is just a precedent. That is why have enough other people who will say that. We have acted in a responsible we have to talk about it so carefully. that is too much. But I will go with it. fashion. It is arbitration. We are talking about those terrible to- We will get a vote that will place some Incidentally, since I mentioned Flor- bacco companies. They withheld infor- limitation on the way we are handling ida, they ought to be ashamed of them- mation. They do have a drug that is ad- tax money for the American people. selves and take down that sign. Our dictive. But they are not the only peo- I thank the President. I yield the distinguished President, take down ple perhaps out there. I started keeping floor. that sign that is absolutely false. a list of the things that my constitu- Mr. HOLLINGS addressed the Chair. Rodham, I don’t know him—Hugh ents, the voters, the folks back home, The PRESIDING OFFICER. The Sen- Rodham, Hillary Clinton’s brother. think that we ought to put on the list ator from South Carolina. They put that up because they want to next. I get a lot of calls for liquor and Mr. HOLLINGS. Mr. President, the project partisan politics into this and a lot of calls about caffeine. What don’t distinguished Senator from Wyoming is Hugh Rodham as a part of the litiga- we know about caffeine? correct; we have a responsibility. tion team—absolutely ludicrous. But It is getting to the point on this list In meetings and almost marathon they put a sign up there and then now where I thought maybe a project sessions around the clock with all Sen- ‘‘drink with the Devil.’’ They have all for the Senate might be to, each day, ators, 20 of us—1 finally disagreed and kinds of expressions. They are running as a part of morning business, bring in voted against us in the Commerce around on the floor of the U.S. Senate a tray similar to a dessert cart that Committee—the distinguished Senator with all the pejorative terms of ‘‘cor- they serve to you at a restaurant that from Arizona, our chairman, made sure ruption,’’ ‘‘greedy,’’ ‘‘predatory,’’ has different products on it, and we that everyone was factored in: That we ‘‘raising taxes,’’ ‘‘slam dunk,’’ ‘‘out- would try those products and deter- certainly considered the health groups; rage,’’ ‘‘sultans of smoke.’’ Oh, boy, mine how beneficial or how harmful Dr. Koop and Dr. Kessler were there. they are having a heyday. they were to people and set a new tax We considered the attorneys general. Oh, boy, aren’t they having a heyday. on those. This might solve tax sim- We seem to forget these agreements, Aren’t they having a heyday—a total plification for the whole Nation, be- and so forth, were made by the attor- smokescreen—with respect to what the cause by the time we go through all neys general in consultation with the actual fact is. the food products in the Nation and de- Incidentally, you are looking at a White House, the health community, cide what a punitive tax we ought to lawyer who practiced for 20 years, and and the tobacco companies. We forget put on them for information we don’t never by the hour. And let me identify the fact, of course, that the tobacco know about them, that leaves a wide myself as a defendant’s lawyer as well companies—this thing has gotten all range and we will not need any other as a plaintiff’s lawyer. I represented out of kilter—agreed to tax them- form of tax, except of course we will be the South Carolina Electric and Gas on selves. There was not a single Con- figuring out new ways to spend the their bus system, passenger bus. If you money as we go along. gressman and there was not a Senator want to defend cases, defend the suits The amendment before us would re- at the table last June. They taxed brought by passengers on a city transit quire the lawyers to provide a detailed themselves. Now we are running system. And I can tell you here and accounting of their legal work to Con- around, we are going to save victims, now that about the middle of Novem- gress in relation to the legal actions and everything else of that kind. ber, maybe even a little bit earlier, the covered by the underlying bill, includ- But let me get back to the Senator Christmas club starts. Nobody who ing any fee arrangements entered into. from Wyoming, because he is right, we gets on a bus wants to catch their arm Then it would limit the payment of the have a responsibility. The 20 of us on in the door, slip down in the aisle, fall attorneys’ fees to $1,000 an hour. the committee complied with that re- down the steps. The bus is jerking off I know people are wondering why sponsibility with respect to lawyers’ everywhere. And they got all of these that is a limitation. Of course, I am fees that we would be engaged in, and little suits. sure they are hearing that there are the money would come to the Federal The corporate lawyers, the regular some out there that are may be getting Government. Yes; as U.S. Senators, we defendant lawyers, are lazy. I said that $88,000 an hour or $92,000 an hour. Then are definitely responsible. to the chief counsel of the electric and when they are checking, they are find- You will find that section, of course, gas company because I was suing them ing out that it is the wealthy and the on page 437 of the bill—‘‘Attorneys’ as a plaintiff and making money doing connected lawyers who are being able fees and expenses,’’ and the criteria it. I said, ‘‘Well, tell them to come in to line their pockets from the settle- used, and everything else, on arbitra- and try the cases.’’ But they settle ments supposedly made on behalf of tion. them all out because they are busy and the American public. This bill would We have in a responsible fashion out- they don’t want to bring the cases. impose one of the most regressive taxes lined the responsibility. There is none So I lined them all up and saved that in America history on low-income of this 25 percent—none of it. Abso- particular corporation millions of dol- Americans. Then we have to debate lutely, they are looking at settlements lars, and I am proud of that. I am proud whether it is fair to limit somebody to made by the several States—I think to stand here when the Senator from $1,000 an hour. Florida, Texas, Mississippi, and now Texas says they ought to be ashamed. Mr. President, to put these figures in Minnesota I think is the last one. But We had this nonsense. We have already a little bit of context, last year the av- we are not the Governor of Minnesota voted on it. Sixty percent of the Sen- erage gross receipts for the 100 top or Florida. We have not, as attorney ators, according to the Senator from grossing law firms in America averaged general of Texas or Mississippi, any- Texas, ought to be ashamed—making $18 million. That was for an entire thing to do with that. We could not all this thing up here of what has been firm—$18 million. If this tobacco bill is legislate on it. going on now for years. not amended, some of the law firms in- We believe, as the Senator does on It has to do, Mr. President, with law- volved in the tobacco settlement will that side of the aisle, in the 10th yers. We see it at every particular turn stand to gain nearly $925 million per amendment, those things not outlined and the political opportunism that has firm. I would say that is a pretty good in the Constitution as responsibilities come about as a result of an outstand- raise for relatively little work. of the Federal Government are re- ing job done by lawyers. What really S6166 CONGRESSIONAL RECORD — SENATE June 11, 1998 happened—and the Senator from Ala- Now we want to control lawyer’s fees. sions, but I wish they would come out bama said he was one who was ap- They never have, over here, worried in the Chamber and debate this thing, proached and did nothing and is proud about really making money—this because I am ready to debate it and of it. Well, if every other attorney gen- crowd over on the other side of the stand up when they end up with their eral had done that and waited for oth- aisle. I have never seen a more sham peroration that we ought to be ers to prove the new theory, as he performance than they are worried ashamed. said—and it was a new theory; nobody about anybody making money. Other- Well, I am proud. I am proud of this had ever won a jury verdict—nothing wise, I have been up here, and if there particular initiative made by the law- would ever have happened and we is an outrage, it is this billable hour yers and the States attorneys general, would not be here. crowd where ‘‘I don’t know the law so because they made that agreement and If you look in the CONGRESSIONAL I charge you as a client so much per they went in never having won before. RECORD from January to June of last hour to go up in the library on the They put in their own money. And go year, you will not see an expression of weekend.’’ It is my call, and if I can to the distinguished Attorney General children smoking in the CONGRES- stay ignorant long enough and go up Mike Moore of Mississippi. Mr. Presi- SIONAL RECORD. Nobody was concerned more weekends, I get more money. dent, you were an attorney general. about it. I have been here almost 32 That is the crowd that ought to be Can you imagine bringing a case in the years, and I have worked with the Na- controlled. The Senators around here State of Washington and having the tional Cancer Institute and the Amer- have been involved in various hearings Governor of Washington sue you be- ican Cancer Society, won national now that owe all kinds of millions in cause you brought the case—not just awards and everything else of that billable hours to downtown lawyers to say, ‘‘General GORTON, I think you kind. Other than putting up the notifi- come and look at their records and ev- might be mistaken.’’ Just sue you. Just cation asking for more research and ev- erything else of that kind. That is the sue you and make you hire a lawyer to erything else, we were not stopping outrage that bothers this particular defend yourself to do your job. That is smoking. This whole thing is going on Senator, not the lawyers who really Mike Moore, from Mississippi. He here brought about by trial lawyers. It brought the case and did something. fought that. Had to get in his own is going to eliminate a lot of cases, a And none of it is 25 percent. The pocket, and hire lawyers there the lot of cancer deaths, as a result of truth be out and the fact is—and whole time. smoking. charge me for this; it is going in the Otherwise, they had to hide witnesses But, yes, they had the ingenious ap- CONGRESSIONAL RECORD—8 percent is that they got from the company. For 2 proach of a class action, the trial law- what is going in with respect to these years they chased them around. They yers did, over the past several years, cases in Florida, Mississippi, Texas, tried everything in the world to intimi- culminating in the agreement last and Minnesota. But they throw around date their witnesses. They really went June. They said: We are going to con- 25 percent and everything else of that on a struggle to come this far. And tinue to bring these class actions even kind, and all of it is subject to arbitra- some of the lawyers they are talking though we have not won one, and we tion and agreement. about—I am not that intimate to the think we have some of the company’s In the Texas case, they already have case—have yet to get a red cent. They records here that the jury would take been petitioned by the distinguished have millions of dollars invested in notice of and change their mind and Governor of Texas, and they are in a time and effort—discovery, interrog- give us a verdict. The attorneys gen- hearing, and I do not know whether it atories, appeals, appearances, travel, eral were approached by these particu- will lead to arbitration; I haven’t kept on and on and on, on behalf of the pub- lar trial lawyers, and they all joined in. up with it. But the States know how to lic of America, and they are the ones I will cite later on, one attorney gen- look out for themselves. To this States who are doing the job and not these eral had to defend his life, had to hide rights crowd on the other side of the Senators with this particular amend- the witnesses, had to really withstand aisle, now all of a sudden all the attor- ment. a lawsuit of hourly pay, hourly wages— neys general are dumb, don’t know Because if they were really inter- hourly, hourly, hourly. Oh, my heav- what they are doing, and we have to ested in billable hours, I would refer to ens. Twenty years I practiced law, and protect the farmer, the filling station some of them here who are listed by if I didn’t do something for the client, operator, and the repairman at the ga- none other than our friend, Steve I did not get paid. And if I brought a rage. Forbes. I worked closely with Steve case on a contingent basis and lost, I Isn’t it interesting, Mr. President. Forbes. He was always asking me for lost it; the client paid nothing. That is There is no plaintiff up here complain- more money. I was chairman of a sub- a wonderful thing in America for mid- ing, no plaintiff ever complaining committee of State, Justice, Com- dle America and the poor Americans. If about lawyer’s fees. Who is complain- merce, and he had Radio Free Europe, you can think up a better system, ing? The crowd that is crying is the and Liberty. I really respect him. He is think it up, because it has worked over one that is causing the injury. They a wonderful fellow, a dedicated Amer- the years. And, yes, our business lead- posture themselves that they are look- ican. He did an outstanding job. But ership doesn’t like it. They call it friv- ing out for the filling station operator don’t let him act like he never saw this olous suits. What trial lawyer has time and the working lady and the laundry town, because he has, and he has been for a frivolous suit? He doesn’t get any- woman and everybody else like that— asking the town and the Government thing if it is frivolous; it is going to get poor America. for more money. thrown out. The only way to get a lawyer is to go But he listed here, since they So the proof of the pudding on frivo- in and get good representation on a brought in Intel—I just got this at the lous suits is to try them and win, and contingency basis. Isn’t it interesting. first thing—Andrew S. Grove, and he the lawyers will quit bringing those You find me the plaintiff who has come gets $164 million compensation a year, kinds of cases if they are frivolous. We up and said, ‘‘I get paid too much coming down to $77,000 an hour. Where don’t have time for frivolous suits, money.’’ They are tickled to death to is the bill about the predatory greed, sham claims, and those kinds of things get anything, because if you left it to corruption, ‘‘Sultan of Smoke,’’ out- that they talk about. We bring good the corporate crowd, they wouldn’t get rage, predatory, right on down the cases. We bring good cases, and we anything. I know. I have been in the line? They don’t say that Grove is all make a mark. game. I have watched it over the years. of those nasty things. They say that is That is exactly what has happened But be that as it may, they made pretty good. Right on. And I agree with here with respect to this case. They that agreement and they said on a con- that. I admire him. went to the attorneys general, and the tingent basis, which now averages out I have been to the Intel plant in Dub- attorneys general finally got together to 8 percent —despite that sign of pejo- lin, Ireland. I have to tell that. I have with the companies. And the compa- rative terms—just to excite people to enjoy something this afternoon. nies are saying: Well, we are winning around here and throw poison about, Just to show how we do work with in- these cases but it is costing us $500- to drinking with the Devil and all. They dustry, I walked into the Intel plant, a $600 million in lawyer’s fees. have all the wonderful little expres- billion-dollar plant outside of Dublin, June 11, 1998 CONGRESSIONAL RECORD — SENATE S6167 and when I walked in the distinguished ner and myself. We had a fortune tied provisions there. If you take the politi- head of the plant named Frank up in that. I wish I had the time to go cal polls, they say, as they said in McCabe—I know everything I say is into it this afternoon, it was very in- Henry VI, ‘‘Kill all the lawyers.’’ That going to be checked. In a campaign, teresting. The point is, we didn’t know is what Dick the Butcher said. But it they have nothing but lawyers and we were going to get anything for that was the greatest compliment we ever billable hours to check everything you 2-year period until the end when we fi- had, I say to the chairman of the Judi- say, so write that down—Frank nally prevailed. ciary Committee, my most distin- McCabe is his name. And he said, ‘‘Gov- I could go down the list. Wait a guished friend, because they wanted to ernor, glad to see you.’’ minute—Sanford Weill, Travelers start anarchy and tyranny in that vast Well, I don’t remember him. But I re- Group, $434 million—$200,000 an hour. land. They knew as long as there was a member him now, because he was with Where are they? Man, come on. Don’t living lawyer to protect individual General Electric in Irmo, a plant we give me about this $80,000 an hour or rights, anarchy could not prevail. So brought to Irmo, SC; GE. He was there $1,000 an hour. We have people in Amer- Dick the Butcher shouts, ‘‘First, we for 10 years, managing that beautiful ica making $200,000 an hour. Yes. Yes. must kill all the lawyers.’’ But, of operation, and $1 billion invested. They are ashamed all right. They course, this crowd over here could care He said, ‘‘You know how I got it oper- wouldn’t come out here. They won’t less about Shakespeare, and they are ating and up and in the black?’’ come out because they know what we the ones who should be ashamed of I said, ‘‘No, how is that, Frank?’’ are telling is the truth about this situ- themselves, absolutely ashamed of He said, ‘‘I went back and sent teams ation. themselves bringing on this onslaught, to Columbia, SC, where you had Mid- What goes into an agreement is a lot taking up this time on a matter we lands Tech, and we copied your tech- of things listed here: the time and have already voted upon. nical training for skills, and we have it labor, that is the billable hour; then Why? Because we have the billable over here in Ireland.’’ the novelty and difficulty of the ques- hour crowd downtown. A lot of good So, we do not speak casually or criti- tion; the skill requisite; the preclusion friends I have, and I have gotten most cally of Mr. Grove. I am proud of him. of other employment—you can go down every award you can find from the I wish I had the ability to make $77,000 the list of these things, on and on, Chamber of Commerce. I love them, an hour. about the tests, the experience, reputa- but they even have TV ads about trial The next fellow here is Mr. Eisner. tion, ability, the attorneys involved, lawyers, trial lawyers. If they ever get Oh, I know him, and he is a wonderful the undesirability. in trouble, tell them to get one, be- operator. I have been out, talked to a Can you imagine bringing a case cause they don’t want to get a cor- board of young folks. I don’t know the more undesirable than to have your porate billable hour lawyer sitting on official name of that board, but I can own Governor sue you for bringing the his duff up on the 32nd floor looking at tell you they were the smartest young case and everybody else chasing you his oriental rugs, at his mahogany gentlemen I ever met, and ladies. They around and calling you predatory, and desk, blinking his eyes, waiting to go cross-examined me and they knew ‘‘Sultans of Smoke,’’ and everything to the club and charging you for it. more about what was going on in else like that, when what you have It reminds me of a Sam Ervin story, Washington than any group with whom done was agreed upon by the State? when he was a Senator here, about that I have met. They were really updated And no, no, no, Senator from Wyo- poor doctor down there in North Caro- and had very thoughtful questions, and ming, we don’t have a responsibility lina. He said the gentleman practiced I learned from them. So I don’t speak other than to leave that one alone; and medicine for 32 years and never had a critically. the one in Florida alone; and the con- vacation. He finally got his son out of But they got Michael D. Eisner here. tract in Texas alone—because those med school and said, ‘‘Son, your moth- Steve Forbes lists him down at $245 were contracts made and cases disposed er and I are going to have to take off million, or $120,000 an hour. Where is of without the Congress of the United for a couple of weeks. You have to take the bill? Here is a fellow who has more States under formal agreement. over because we have never had a vaca- than your $90-some thousand or $80- We are all good enough Americans to tion.’’ some thousand. The floor is cleared. realize we are not going to abrogate He came back off vacation and was They are not around. There is no the agreement or contract or whatever talking to his son. amendment to grab Eisner at $120,000 it is. ‘‘Dad, you know Mrs. Hurleeha?″ an hour. Even if we wanted to write it into He said, ‘‘Yes, that’s the lady with Then, there is Stephen Hilbert. He this particular bill, we couldn’t do it. the bad back.’’ gets $350 million, or $170,000 an hour. Those are agreements made when we The son said, ‘‘She doesn’t have a bad Man, this thing is going up, up, and were sleeping at the switch and not back.’’ away. I better start subscribing to this doing anything about children smok- ‘‘My God, son, did you settle that magazine and see where I can get out ing. Now, we are all in heat—‘‘children case? She paid your way through med of this political rut, trying to defend smoking,’’ ‘‘we’ve got to look out for school.’’ the working people of America, those the children,’’ ‘‘they’re victims, vic- If you don’t kill them, you can who cannot afford billable-hour law- tims.’’ People are bringing in their rel- charge them, and if you don’t bring the yers—who cannot afford a lawyer, pe- atives saying they are victims, smok- case to court and keep on studying it, riod—but can come in and if they have ing for years on end. For 30 years we you get into this billable hour thing. a claim or have a chance or whatever. have been telling them the best we That is exactly what is going on. One of the last cases I handled, I said, could about the danger to your health They have it with respect to the ‘‘I don’t think too much of that case.’’ on a package of cigarettes. product liability, with the Coast Guard Well, the lady said, ‘‘Mr. HOLLINGS, we There it is. There it is, Mr. President. bill, the transportation bill. Anytime have been to four other law firms and They want to come in now with this as- that corporate America can hammer on finally the sergeant out there at the sault, about how they are saving peo- lawyers who really are bringing about police station, he said that you didn’t ple, totally misrepresenting the record. safety, bringing about good health, mind trying the cases. And what I am There isn’t any question about it, bringing about the end of smoking in telling you is right. I wasn’t at fault.’’ starting with the Hugh Rodham sign America, you have done something. Well, it looked to me the way she de- and going down to billable allowance Let’s get to the point. The greatest scribed the particular injury, and the and our duty and 25 percent and the call upon any profession, Mr. Presi- case that had come about, they had to outrageous—outrageous—words again dent, is to rid itself of the profession. have a moving bridge. If someone is and again and again. Specifically, if the ministers can get ever interested, I will go, because I Now, what’s afoot? Well, any and ev- rid of all sin, the doctors all disease, took that case all the way up past the erything on this bill, unfortunately, the greatest call upon the distin- circuit court of appeals in Richmond, because we have drugs, we have tax guished chairman of the Judiciary and we won it. I worked for a year and cuts for marriage penalties, we have all Committee and me is to get rid of all a half easily, almost 2 years, my part- kinds of little provisions here and little injury cases. S6168 CONGRESSIONAL RECORD — SENATE June 11, 1998 When I came up here 32 years ago, who ‘‘deserve’’ what they get. ‘‘They Mr. HOLLINGS. That is right. None just about, one of the first things was produce,’’ and don’t tell me the trial of the Castano lawyers, and they have Love Canal. We had all the toxic fumes lawyers don’t produce. We are here. No been at it for years. and the people dying. What happened? Congressman brought us here. No Sen- Mr. HATCH. Many of them have mil- We didn’t sit around when it was ator brought us here. The trial lawyers lions of dollars in unpaid fees in this brought to our attention, by whom? brought us here on this particular ini- matter. Is that correct? Trial lawyers. We put in the Environ- tiative. Mr. HOLLINGS. Exactly. mental Protection Agency. And it It is greed, trying to get even more, Mr. HATCH. Isn’t it also true a con- bothers some people getting those EPA acting like we are the ones giving the tract between a plaintiff and his attor- statements, environmental statements, fees. As the Senator from Wyoming ney is a legally enforceable contract, but they have saved a lot of injury. It says, the provisions are in here for re- which Congress should not impair? has saved a lot of lives. We have a sponsibility of arbitration. You Mr. HOLLINGS. Exactly. You cannot much, much more healthy America. wouldn’t have found 19 Senators who impair the obligation of a contract Similarly speaking, we found little would have reported this bill out for a constitutionally. You and I both know children burning up with flammable reckless 25 percent and billions and bil- that. blankets in the cribs. The trial lawyers lions of dollars like they are talking Mr. HATCH. If Congress, as it would said, ‘‘Look, there is no sense trying about. It is less than what corporate be doing here, at least as I understand these and winning and getting money; America is doing, riding around smil- the intent of this amendment, were to let’s stop burning up the children. ing. I met with that crowd. I like the interfere retroactively with private Let’s get a Consumer Product Safety carpetbagger up in the Northeast and contracts, it would be unconstitutional Commission.’’ Boston and New York. for a variety of reasons; isn’t that I have been in test labs where they When you are a young Governor, they right? Mr. HOLLINGS. It would not be test not only the toys, not only the will let you in the door. And we have worth the paper we would write it on. cribs, but all the particular devices the blue chips, corporate America, We would be wasting our time here. that go into the kitchen as to safety, down there. Now we travel over to Eu- Mr. HATCH. By capping a fee, such and we have corporate America on a rope and Latin America, and we have— an interference is a taking under the safety course. and we are proud of it—the hundreds of Fifth Amendment of the Constitution. Ask Ford Motor Company. Just the Hondas, the Hoffmann La Rouches, the The Supreme Court cases clearly show week before last, they recalled 1,700,000 BMWs. that the Federal Government cannot Ford pickup trucks. Why? Because of But I can tell you here and now, let confiscate money or interfere with a Mark Robinson out there with the us not as a Congress bog down into this lawful contract. Is the Senator aware Pinto case in San Diego. Mr. President, political thing on account of pollster 20 years ago, he got a verdict of $3.5 of that point? politics and start limiting fees. Let us Mr. HOLLINGS. The Senator is cor- million actual damages and $125 mil- let them make their agreements. Let lion punitive damages. He hasn’t col- rect. us, as a Federal program, have an arbi- Mr. HATCH. In addition, the regula- lected a dime on the punitive damages, tration like we have in everything else. tion of attorneys’ fees properly, at but we in America have collected on it, They have subjected themselves, I least as I view it, belong in the domain because that is why they are calling in know, in Mississippi and otherwise, to of the States, and such usurpation of these things now. Time and again arbitration. The trial lawyers will State prerogatives may very well vio- every week—Chrysler, just before that, agree with that. Let us get away from late the Tenth Amendment in the eyes called in hatchbacks. These automobile all of this onslaught of Hugh Rodham, of many constitutional authorities. Is companies don’t just get a CPA to fac- Hillary’s brother, everything else like that right? tor in the cause of the injury—‘‘We can that, that they might think is a good Mr. HOLLINGS. Absolutely. If the afford that rather than pay the law- thing to put on national TV so they Senator would yield for just a second. yers; we just settle the cases’’—they can get on C-SPAN and go again and Mr. HATCH. Sure. are putting out safe products in Amer- again at the particular bill that we Mr. HOLLINGS. Unconstitutional. It ica. And Europe is following our exam- have before us. was cited by the constitutional profes- ple. Mr. President, as a question, we had sor of law at the Kansas City School of So what happens then? Along comes hearings on this. And there is a legal Law. And I quote: ‘‘It would violate the the trial lawyers with the attorneys question. I am sure the chairman of the State sovereignty protected by the 10th general. They have come in now and Judiciary Committee will get into it. amendment. Second, it would con- not taxed anybody. When I heard this Mr. HATCH. Will the Senator yield stitute an uncompensated taking of figure last June, I was almost in shock. on that point? private property in contravention of I have worked on the defense budget Mr. HOLLINGS. Yes. the 5th amendment.’’ for 28, 29 years on the Defense Appro- Mr. HATCH. You know, as chairman Mr. HATCH. Recent court opinions, if priations Subcommittee. The actual of the Judiciary Committee, and some- my colleague would permit me to ask amount is $250 billion, but when they body who has been both a defense law- another question, such as New York v. came up with $368 billion, I said my yer and a plaintiff’s lawyer, I have United States or Printz v. United newspaper has gone loco. They don’t some specific thoughts and first hand States has made the Tenth Amendment know how to print things. They have a experience on this issue. a shield against Federal impositions on mistake here. They came up with $368 Mr. HOLLINGS. As has this attorney. the sovereign authority of the States. billion and said just increased a modest Mr. HATCH. As you have been an at- Is that correct? amount, and they are saying, ‘‘Oh, Con- torney who has tried cases on both Mr. HOLLINGS. That is right. gress is up there, tax and spend.’’ And sides of the issue, you understand very Mr. HATCH. That was not always the that is the companies’ ads. They are well that without the attorneys in the case, but it has been so in those cases. the ones who agreed to it. It was their Castano group, we would not be where Under any view of federalism, there is idea. we are today with the original settle- no justification for Congress, whatso- Come on, we have gotten totally off ment. ever, entering an area of pure State ju- track here with this political charade Mr. HOLLINGS. Exactly. risdiction, altering the rights and the that has been going on with attorneys’ Mr. HATCH. We would not have had a liabilities or remedies of private par- fees. ‘‘We’ll come back again, and if we settlement that amounts to $368.5 bil- ties, and then dispensing with all due can’t get $1,000, we’ll come back for an- lion; not anywhere near that amount process protections guaranteed by the other amount; we’ll come back next without those attorneys. Constitution. Isn’t that correct? year, and we shall return,’’ like Mac- Mr. HOLLINGS. No Congressman, no Mr. HOLLINGS. That is right. Arthur. Come on, they know better. We Senator—just those. Mr. HATCH. Well, let me ask the will not put in here to get the billable Mr. HATCH. Is it your understanding Senator just one or two more ques- hours crowd downtown and limit them that not one of those plaintiffs has tions. I may have a lot more to say and or take these corporation fellows been paid a dime for this case so far? later in this debate. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6169 The States have already shown a Mr. HATCH. I remember when Jackie their agreement on the $386.5 billion willingness to step in and prevent un- Pressler was the chairman of the settlement? reasonable and excessive fees in the to- Teamsters. He came before our com- Mr. HOLLINGS. Exactly. bacco settlements. Is that right? mittee and somebody brought out that Mr. HATCH. Nobody has been able to Mr. HOLLINGS. The State of Florida he made over half a million dollars a accomplish what these attorneys have has stepped in and has it as a hearing; year and was kind of needling him that achieved. They brought the whole to- so has the State of Texas. it was too much money for a labor bacco industry to their heels and tried Mr. HATCH. In the Florida settle- union leader to make. He looked right to get the U.S. Congress—at least the ment, the court threw out the contin- up at him and said, ‘‘Well, I want you Senate, so far—to try to do something gency fee arrangement, which it found to know that almost every one of my about the deplorable behavior of to- to be clearly excessive under the cir- corporate counterparts makes a lot bacco companies. Isn’t that correct? cumstances. This shows that the State more. And I’m worth every penny that Mr. HOLLINGS. That is correct, Sen- courts are best equipped to address this I make for my union.’’ ator. issue by utilizing the arbitration provi- Mr. HOLLINGS. Certainly. Mr. HATCH. Don’t you think they de- sion of the Commerce Committee bill. Mr. HATCH. I had to agree with him. serve better than average compensa- Is that correct? I thought he was worth every penny he tion for that significant accomplish- Mr. HOLLINGS. That is correct. ment? Mr. HATCH. As I understand it, the made, whether you agree or disagree. Mr. HOLLINGS. At least what is bill that the distinguished Senator has What about entertainers? Do we set agreed to. They are complaining about worked on, the one that is on the floor an amount of money they can make? before us today—as much as I dislike Mr. HOLLINGS. No, sir. an agreement that you didn’t make the bill, as much as I think it will not Mr. HATCH. Or sports figures? and I didn’t make and we have a re- solve the problem, as much as I think Mr. HOLLINGS. Not at all. sponsibility to leave alone. it will not bring the tobacco companies Mr. HATCH. If Michael Jordan wants Mr. HATCH. Let me ask the Senator back to the table, as much as I think it to make $60 or $80 million a year, or this question. If the Senate falls to could be written in a far better way, Tiger Woods, who is earning millions of pass this bill and we wind up doing and as much as I think it has been sub- dollars a year, should Congress be set- nothing here or if we cut out the attor- stantially weakened by some of the ting their salary? ney fees, they could wind up not re- amendments agreed to—the fact of the Mr. HOLLINGS. I appreciate the couping the $40 to $100 million in legal matter is that the bill does have a pro- questioning of the distinguished Sen- time and other expenses that they have vision whereby attorneys’ fees can be ator, because it brings into sharp focus incurred in this matter; isn’t that cor- resolved. Is that not correct? exactly what we are about here. rect? Mr. HOLLINGS. Certainly. Mr. HATCH. Let me ask one other Mr. HOLLINGS. Exactly. Mr. HATCH. The bill contains a pro- question. I admire some of the top cor- Mr. HATCH. Isn’t that what contin- vision whereby the attorneys’ fees will porate leaders in the world as well as gency fees are all about? have to be resolved in a legally reason- the top sports figures in the world. Mr. HOLLINGS. Contingency fees are able manner. Isn’t that correct? Mr. HOLLINGS. Exactly. absolute risk. You are assuming the Mr. HOLLINGS. Exactly. Mr. HATCH. I admire people who are cost. Mr. HATCH. It is very unlikely that innovative and creative. Take Bill Mr. HATCH. When I tried cases for anybody is going to get away with Gates, for example. I admire him. I plaintiffs on contingency fees, I won some big windfall under the provisions think what he has done at Microsoft is most all of them. It was not a matter that apply in this bill and, I might add, nothing short of phenomenal. But of not getting paid, because I was al- in the substitute that we have worked should we begrudge the fact that he ways able to win a bigger verdict than on as well. Am I right on that? has earned his spot in our society as I could have gotten through settlement Mr. HOLLINGS. The distinguished one of the wealthiest men in the world, or they could have gotten through set- Senator is right on target. worth somewhere between $40 and $50 tlement. Mr. HATCH. Well, let me ask the dis- billion? The fact of the matter is, if I hadn’t tinguished Senator this: It seems to me Mr. HOLLINGS. What impressed me, won the cases, I would have assumed we must also examine the precedent we Senator, about Mr. Gates—I missed those losses; isn’t that right? are setting here in having the U.S. him the other morning because I had to Mr. HOLLINGS. I have done it. I Congress single out any one profession be on the floor—but he has some 21,000, have lost that. by capping their earnings. 22,000 individuals working for him—all Mr. HATCH. My point is, that is why Mr. HOLLINGS. That is my plea, millionaires. contingent fees are so important. A lot Senator. It might in the one instance Now, how do you like that? That is a of the people who came to me could in be an instrument of good, but it is the wonderful business and industry. And no way have spent a day in court with- customary weapon to run amok and it is his genius that has gotten it there. out a contingency fee lawyer who was start into an area where it is totally up It was nothing we did in the Congress. willing to take the risk of bringing to the individual parties, on the one Mr. HATCH. Not to dwell on that in- their case before a jury and trying to hand, making the agreement, but more dustry—Steve Jobs; he deserves every recover just compensation for them be- particularly invading the sovereignty penny he made. He helped make the fore that jury; isn’t that true? of several States. computer industry what it is today. Mr. HOLLINGS. That is correct. Mr. HATCH. Can I ask my dear friend Isn’t that correct? Mr. HATCH. I have been there, and I and colleague, do we single out the in- Mr. HOLLINGS. That is right. have to say, when we start setting sal- surance executives or computer execu- Mr. HATCH. The head of Compaq, or aries for attorneys, or any other group tives? Mr. HOLLINGS. No, sir. the head of Hewlett-Packard or Larry of people, that is going to be the end of Mr. HATCH. Does the U.S. Congress Ellison, the head of Oracle, or any of the free market system, as far as I am set their fees or their salaries or their them for that matter are all very concerned. compensation? wealthy people who some people think Mr. HOLLINGS. No question about Mr. HOLLINGS. No. I apologize for lucked their way into this wealth. I it. raising these, but I just wanted to show happen to believe they worked hard I see the distinguished managers of the sincerity. You know, these are all and with innovation and creativity the bill. Let me yield the floor. friends of mine. I admire them all. And they were able to make this kind of Mr. HATCH. Will the Senator yield they produce that amount. compensation. so I can compliment the two managers. Mr. HATCH. Do we single out labor Are they really that much different I want to compliment the managers for union leaders and say they can only from really top-notch plaintiffs’ law- the provision contained in this bill earn so much money? yers like the Castano group lawyers that resolves these matters. You have Mr. HOLLINGS. No. The Congress who really made a difference here and taken a reasonable set of language and has a lot of good work to do, but not to who are responsible for bringing the to- a provision that would resolve the get off in the field of this thing. bacco industry to the table and getting question of reasonable legal fees. I S6170 CONGRESSIONAL RECORD — SENATE June 11, 1998 think both manages on this bill deserve Mr. KERRY. I move to reconsider the ask further modification of the unani- credit for having done that. vote. mous consent request, simply to say I will have more to say on this issue Mr. NICKLES. I move to lay it on the that, after disposition of the Faircloth- later. I am sorry I interrupted my col- table. Sessions amendment on attorney’s league, but I wanted to ask him these The motion to lay on the table was fees, it is then agreed that it would be questions, since he had spoken so elo- agreed to. the Democrats’ opportunity to offer an quently. Mr. KERRY. I ask my friend from amendment. Mr. MCCAIN. Mr. President, we had Oklahoma if he wanted to proceed. I Mr. McCAIN. Reserving the right to agreed earlier that, pending negotia- think we are going to proceed accord- object, and I won’t object, the Senator tions with Senator NICKLES, there ing to the unanimous consent request, knows that we always have an objec- would be a modification of the Kerry which is to go immediately to the Ses- tion from this side, but we have always amendment, which was not tabled. Fol- sions amendment. acted back and forth. I can assure the lowing that language being accepted, Is that the understanding of the Sen- Senator that, if necessary, I will seek then the Kerry amendment would be ator from Oklahoma? first recognition so that the amend- taken on a voice vote. Mr. NICKLES. Yes. ment from that side could be allowed. The debate has been on the Sessions- Mr. President, I just want to thank Mr. KERRY. I thank the Senator. Faircloth amendment, which has not both my friend and colleague from That is certainly the fair way we have been propounded. We would like to Massachusetts, as well as from Ari- been moving. I thank the manager for have Senator SESSIONS come over and zona, for accepting this modification. his continued effort to make sure we propound his amendment at that time, The modification did a couple of move that way. and then Senator KERRY would move to things. One, as I stated prior to the Let me say for Members who are try- table the Sessions amendment. vote, we didn’t want to pass an expan- ing to understand exactly where we are At this time, I yield the floor so that sion that would basically take the going, the amendment we voted on ear- Senator KERRY can modify his amend- means testing off of the child care de- lier this afternoon, the Kerry-Bond ment to which Senator NICKLES and velopment block grant, nor did we amendment which carried by 66 to 30- others have agreed. want to change the allocation or the something, was passed by the Senate The PRESIDING OFFICER. The Sen- ratio of the State match. We have cor- by voice vote. ator from Massachusetts. rected that. We will now proceed to have 45 min- Mr. KERRY. Mr. President, it is my I thank my friends and my colleagues utes of debate remaining on the amend- understanding then—and I ask unani- for doing that. I have no objection to ment on attorneys’ fees, at which point mous consent that after my modifica- the unanimous consent request. there will be a motion to table and we tion we would proceed immediately to Mr. KERRY. Mr. President, just so will vote again this evening in about 45 the vote on my amendment—subse- the legislative record is absolutely minutes on that amendment, at which quent to that, there would be a 45- clear here, there was, in the underlying point we will then lay down an amend- minute period of debate evenly divided bill, a change in section 418 of the So- ment. I am not sure what the inten- on the Sessions amendment, at which cial Security Act which actually trans- tions of the majority leader will then time that would be followed by a mo- fers money to the child development be with respect to scheduling a vote on tion to table. block grant. What we arrived at was an that. The PRESIDING OFFICER. Without agreement that there was no intention I suggest the absence of a quorum. objection, it is so ordered. to change the means testing and/or dis- The PRESIDING OFFICER. The AMENDMENT NO. 2689, AS MODIFIED tribution with respect to section 418. clerk will call the roll. Mr. KERRY. Mr. President, I send a However, it is the understanding of The bill clerk proceeded to call the modification to the desk. the Senator from Oklahoma and the roll. The PRESIDING OFFICER. The Senator from Massachusetts that as to Mr. FAIRCLOTH. Mr. President, I clerk will report. the money that goes directly to the ask unanimous consent that the order The bill clerk read as follows: child care development block grant for the quorum call be rescinded. The Senator from Massachusetts [Mr. through the tobacco trust fund, that The PRESIDING OFFICER. Without KERRY], for himself, Mr. BOND, Mr. CHAFEE, money may be disbursed according to objection, it is so ordered. Mr. KENNEDY, Mr. DODD, Mr. WELLSTONE, Mr. the terms of the Kerry-Bond amend- AMENDMENT NO. 2701 JOHNSON, Mrs. BOXER, Mr. SPECTER, Ms. ment. (Purpose: To limit attorneys’ fees) LANDRIEU, Mr. DURBIN, Mr. GRAHAM, Mr. Mr. McCAIN. Mr. President, I want BINGAMAN, and Mr. KOHL, proposes an Mr. FAIRCLOTH. Mr. President, I amendment numbered 2689, as modified. to take a second to thank the Senator send an amendment to the desk and from Oklahoma. He and his very capa- Mr. KERRY. I ask unanimous con- ask for its immediate consideration. ble staff have been through this bill sent reading of the amendment be dis- The PRESIDING OFFICER. The with a fine-toothed comb. By the way, pensed with. clerk will report. The PRESIDING OFFICER. Without I say this with full understanding that The bill clerk read as follows: the Senator from Oklahoma does not objection, it is so ordered. The Senator from North Carolina [Mr. agree with this legislation. But what The amendment will be so modified. FAIRCLOTH], for himself, Mr. SESSIONS, Mr. The amendment (No. 2689), as modi- he and his staff have done has been ex- MCCONNELL, and Mr. GRAMM, proposes an fied, is as follows: tremely constructive. amendment numbered 2701. There have been several provisions, On page 201, line 20, strike from the comma Mr. FAIRCLOTH. Mr. President, I through line 21, and insert ‘‘;’’ after ‘‘Act.’’ as would be the case with a very large ask unanimous consent that reading of On page 203, line 7, strike from the comma bill, where mistakes were made either the amendment be dispensed with. and all that follows through line 14, and in- through unintentional or erroneous The PRESIDING OFFICER. Without sert a period after (b)(2) on line 7. technical printing of the bill. objection, it is so ordered. At the appropriate place insert the follow- This is not the first time that the The amendment is as follows: ing: Senator from Oklahoma has found un- ( ) ASSISTANCE FOR CHILDREN.—A State At the appropriate place, insert the follow- shall use not less than 50 percent of the intentional provisions of the bill vio- ing: amount described in subsection (b)(2) of sec- lating existing law and the jurisdiction SEC. 17. ATTORNEY’S FEES AND EXPENSES. tion 452 for each fiscal year to carry out ac- of other committees, and I appreciate (a) FEE ARRANGEMENTS.—Subsection (c) tivities under the Child Care and Develop- very much his effort, because I think shall apply to attorneys’ fees provided for or ment Block Grant Act of 1990 (42 U.S.C. 9858 whether the bill passes or not, it has in connection with an action of the type de- et seq.). been significantly improved due to his scribed in such subsection under any— The PRESIDING OFFICER. The efforts. (1) court order; (2) settlement agreement; question is on agreeing to the amend- Mr. NICKLES. I thank my friend. (3) contingency fee arrangement; ment, as modified. Mr. KERRY. Mr. President, part of (4) arbitration procedure; The amendment (No. 2689), as modi- our agreement, and I want to make (5) alternative dispute resolution proce- fied, was agreed to. sure that Senator MCCAIN agrees, and I dure (including mediation); June 11, 1998 CONGRESSIONAL RECORD — SENATE S6171 (6) retainer agreements; or (i) whether the claimant attorney was obli- the time being allotted to both parties (7) other arrangement providing for the gated to proceed with the representation during the quorum call? payment of attorney’s fees. through its conclusion or was permitted to The PRESIDING OFFICER. Time is (b) APPLICATION.—This section shall apply withdraw from the representation; and charged to the Senator who suggests to all fees paid or to be paid to attorneys (ii) whether the claimant attorney as- under any arrangement described in sub- sumed an unconditional commitment for ex- the absence of a quorum, unless it is section (a)— penses incurred pursuant to the representa- asked for otherwise. (1) who acted on behalf of a State or tion; Mr. FAIRCLOTH. Mr. President, I politicial subdivision of a State in connec- (E) The expenses actually incurred by the ask unanimous consent that the time tion with any past litigation of an action claimant attorney pursuant to the represen- under the quorum calls be equally di- maintained by a State against one or more tation including— vided. I did not specify that. tobacco companies to recover tobacco-relat- (i) whether those expenses were reimburs- ed expenditures; Mr. KERRY. Reserving the right to able; and object, and I will not object. I think it (2) who acted on behalf of a State or politi- (ii) the likelihood on each occasion that cal subdivision of a State in connection with expenses were advanced that the claimant is important to keep moving and we any future litigation of an action maintained attorney would secure a favorable judgment will do that. Mr. President, I will not by a State against one or more tobacco com- or substantial settlement; object. panies to recover tobacco-related expendi- (F) The novelty of the legal issues before The PRESIDING OFFICER. Without tures; the claimant attorney and whether the legal (3) who act at some future time on behalf objection, the time during quorum of a State or political subdivision of a State work was innovative or modeled after the calls will be charged equally to both in connection with any past litigation of an work of others or prior work of the claimant sides. attorney; action maintained by a State against one or Mr. FAIRCLOTH. Senator SESSIONS (G) The skill required for proper perform- more tobacco companies tobacco-related ex- is coming to the floor and will be here penditures; ance of the legal services rendered; (H) The results obtained and whether those momentarily to speak on the bill. (4) who act at some future time on behalf I suggest the absence of a quorum. of a State or political subdivision of a State results were or are appreciably better than in connection with any future litigation of the results obtained by other lawyers rep- The PRESIDING OFFICER. The an action maintained by a State against one resenting comparable clients or similar clerk will call the roll. or more tobacco companies to recover to- claims; The bill clerk proceeded to call the bacco-related expenditures; (I) Whether the original fee arrangement roll. (5) who acted on behalf of a plaintiff class includes a fixed or a percentage fee; Mr. WARNER. Mr. President, I ask in civil actions to which this Act applies (J) The reduced degree of risk borne by the unanimous consent that the order for claimant attorney in the representation and that are brought against participating or the quorum call be rescinded. nonparticipating tobacco manufacturers; the increased likelihood that the claimant (6) who act at some future time on behalf attorney would secure a favorable judgment The PRESIDING OFFICER. Without of a plaintiff class in civil actions to which or substantial settlement based on a chrono- objection, it is so ordered. this Act applies that are brought against logical progression of relevant developments Mr. WARNER. Mr. President, I ask participating or nonparticipating tobacco from the 1994 Williams document disclosures the Senator to yield me such time as I manufacturers; to the settlement negotiations and the sub- may require. (7) who acted on behalf of a plaintiff in sequent Federal legislative process; and Mr. FAIRCLOTH. I am delighted to civil actions to which this Act applies that (K) Whether this Act or related changes to do so. are brought against participating or non- State laws increase the likelihood of success participating tobacco manufacturers; in representations subject to this section. Mr. WARNER. Mr. President, I rise (8) who act at some future time on behalf (3) LIMITATION.—Notwithstanding any in strong support of this amendment. of a plaintiff in civil actions to which this other provision of law, any attorneys’ fees or This effort on behalf of the U.S. Senate Act applies that are brought against partici- expenses paid to attorneys for matters sub- has a laudable and commendable goal pating or nonparticipating tobacco manufac- ject to this section shall not exceed a per to reduce smoking among teenagers. turers; hour rate of $1,000 in addition to 200 percent But I regret that I will not be able to (9) who expended efforts that in whole or in of actual out-of-pocket expenses for which part resulted in or created a model for pro- support the bill for many reasons; fore- detailed documentation has been provided most among them is the fact that we grams in this Act; and which have been approved by the court (10) who acted on behalf of a defendant in or arbitration panel in such action. are trying to enable a certain class of any of the matters set forth in paragraphs (1) (4) RECORDS REQUIREMENT.—All records lawyers who, in many instances, I am through (9) of this subsection; or submitted to a court or arbitration panel sure have rendered legal services of (11) who act at some future time on behalf pursuant to this section shall be available great value, but others of questionable of a defendant in any of the matters set forth for public inspection and reproduction for a in paragraphs (1) through (9) of this sub- value. We will set precedence for the period of one year from the date of adjudica- section. collection of legal fees that have never, tion of the attorneys’ fees. (c) ATTORNEY’S FEES. in my memory as a lawyer, been estab- (1) JURISDICTION.—The determination of at- (d) SEVERABILITY.—If any provision of this lished in the history of this country. I torney’s fees for compensation subject to section or the application of such provision to any person or circumstance is held to be joined the distinguished Senator in a this section shall be within the jurisdiction similar amendment to curtail these of— unconstitutional, the remainder of this sec- (A) the court in which the action for which tion and the application of the provisions of fees. the claimant attorney is making a claim is such section to any person or circumstance I feel that the people of this country pending; or shall not be affected thereby. will sit back in absolute stunned shock (B) an arbitration panel selected by the Mr. FAIRCLOTH. Mr. President, should legislation pass that did not in parties or otherwise selected by law. there has been an agreement reached some way try to properly and fairly (2) CRITERIA.—In the determination of at- compensate attorneys, but not do so at torneys’ fees subject to this section, the that we will have a vote on this amend- court or arbitration panel shall consider— ment after 45 minutes of debate, equal- the levels that have been discussed in (A) The likelihood at the commencement ly divided between the two sides. the course of this legislation. of the representation that the claimant at- The PRESIDING OFFICER. The Sen- I lend my strong support to this torney would secure a favorable judgment, a ator is correct. amendment. substantial settlement, or a successful nego- Mr. FAIRCLOTH. Mr. President, I Mr. President, the other features of tiation towards a global settlement agree- suggest the absence of a quorum. this legislation which trouble me ment for submission to the Congress; (B) The amount of time and labor that the The PRESIDING OFFICER. The greatly is the concept of passing on to claimant attorney reasonably believed at the clerk will call the roll. a class of persons who still use tobacco, commencement of the representation that he The bill clerk proceeded to call the which is perfectly legal to do so, an on- was likely to expend on the claim; roll. erous tax, particularly on a class of (C) The amount of productive time and Mr. FAIRCLOTH. Mr. President, I persons that really in many respects labor that the claimant attorney actually in- ask unanimous consent that the order are least able to pay the tax. What we vested in the representation as determined for the quorum call be rescinded. are doing is like the old days in the through an examination of contemporaneous The PRESIDING OFFICER. Without West. We are going out and deputizing and reconstructed time records; (D) The obligations undertaken by the objection, it is so ordered. sheriffs to be tax collectors. We are ac- claimant attorney at the commencement of Mr. KERRY. Mr. President, before tually creating their own deputy tax the representation including— the Senator proceeds, can I ask how is collectors now to go out and collect S6172 CONGRESSIONAL RECORD — SENATE June 11, 1998 this tax. We are scrambling around ally hear the figure of $516 billion. But my friend and colleague from Massa- here trying to figure out how to spend it is a lot more than that. $516 billion chusetts just had, an amendment it. doesn’t index for inflation, and so on. which said let’s spend maybe $2 billion I just cannot support legislation that We have already had charts on the more in child care development. I increases, I think, in a most unfair floor that show it to be up to $880-some didn’t support it. He won. He had the manner a tax on this class of individ- billion. That doesn’t even count the votes; congratulations to him. But we uals. amendment of Senator DURBIN that have the authority to say here is where This morning I watched, as I am sure was passed the other night that in- the money is going to go. This is Con- many do, the various shows, television creased the look-back penalties from $4 gress. So he won on his amendment. I and news reporting shows about the re- billion a year to about $7.7 billion a don’t agree with it. I think it further action of the American public to this year. So we may well have a tax pack- confirms that this bill is a tax-and- legislation. They had a group of young age that over the next 25 years will spend bill. people on. They all admitted to the transfer from consumers—not tobacco But on the spending side we have a fact that they smoked. Some said they companies, from consumers—maybe right to say we are going to limit on wished they didn’t and would like to $900 billion; maybe closer to $1 trillion. how much money we are going to spend get off of it. I also find disturbing that These legal fees are coming out of in administrative costs and in legal we are putting a tax on a number of this fund. This is a fund created by fees. I think it is one of the most im- people—I don’t know how you calculate Congress. If this bill should become portant amendments that we have. the number—who are smoking and law—and I hope and pray that it I urge my colleagues to vote yes. I would like to get off, but they simply doesn’t, but if it does—these moneys will tell my colleagues if they don’t cannot for various personal reasons are mandated by an act of Congress, support this at $1,000 an hour we are muster the strength to do so. But they and we have every right to say we want going to come back with another one are going to get punished. to make sure that the money goes to and maybe another one. Where is the But these young people are almost where we intend it to go. limit going to be? Surely we are going mocking the effort of the Congress I have heard everybody say we want to have a limit? thus far in dealing with this issue of it to go to reduce teenage consumption I ask unanimous consent that an ar- smoking. Raising the cost of a pack of of tobacco. Now we say and also con- ticle from the Washington Times be cigarettes is simply not going to, in my sumption and addiction to drugs. I printed in the RECORD. judgment, in any significant way cur- think likewise we have every right—as There being no objection, the mate- tail the smoker. It is just not going to a matter of fact, we have an obliga- rial was ordered to be printed in the do it. tion—to make sure that we don’t spend RECORD, as follows: I am proud, like most in this Cham- excessively on legal fees. We want the [From the Washington Times, June 7, 1998] ber, to have raised children who are money to go to its stated purpose—not LAWYERS, STATES TUSSLE OVER TOBACCO- grown now. We know the nature of to be going to enhance a few trial at- SUIT FEES young people. If we raise the price per torneys. In some cases these trial at- (By Joyce Howard Price) pack of these cigarettes, it will almost torneys would become not just million- ATTORNEYS SAY THEY DESERVE UP TO $92,000 AN be a challenge for them to go out and aires but billionaires. HOUR; OFFICIALS SAY THIS WOULD ROB THE in some way find the money to pur- Mr. President, there was an article in PUBLIC chase cigarettes and use them almost the Washington Times on June 7th. It Orioles owner Peter Angelos, who earlier as a status symbol. Indeed, I think we talked about attorneys saying they de- this decade earned about $250 million for rep- run the risk—and others have discussed serve up to $92,000 an hour. This is resenting ailing factory workers exposed to this in great detail—of creating a black written by Joyce Price in the Washing- asbestos, stands to receive as much as $875 ton Times. It goes on. I will read a cou- million if he settles the state’s suit against market situation and almost induce tobacco companies to recover the costs of criminality among the younger genera- ple of paragraphs and insert it in the treating smoking-related illnesses. tion. RECORD. And Mr. Angelos is far from being the only For that and many reasons, eventu- It says the Orioles owner in Balti- lawyer who could reap a staggering windfall ally I will cast my vote against this more, Peter Angelos, who earlier this from tobacco settlements. legislation. decade earned about $250 million for Lawyers in six of the 12 private law firms But on this issue this is, I think, the representing ailing factory workers ex- that helped negotiate Florida’s $11 billion to- best attempt that I have seen thus far posed to asbestos, stands to receive as bacco settlement are refusing a deal that much as $875 million if he settles the would let them share at least $280 million in to try and recognize the injustice we legal fees for their efforts. are inflicting on people through tax- State suit against tobacco companies Instead, the firms—most of which used ation and that a class of beneficiaries to recover the cost of treating a smok- only one lawyer in the tobacco talks—want of lawyers will be unjustly enriched. ing-related illness. It goes on. It talks in excess of $2.5 billion, or as much as $280 Mr. President, I strongly support this about the Florida case. It talks about million per practice, over 25 years, and amendment. I yield the floor. the Texas case. It talks about the total they’ve gone to court to try to get it, says Mr. NICKLES addressed the Chair. settlement of $113 billion. But the trial Jim Peters, special counsel in the Florida The PRESIDING OFFICER. Who attorneys would receive $2.8 billion, or Attorney General’s Office. ‘‘The lawyers laugh at a payment of $280 yields time? as much as 24.7 percent of the total re- million for all 12 law firms, which would be The Senator from Oklahoma. ceived in Florida. In Texas, the total more than $23 million per attorney. One law- Mr. NICKLES. Mr. President, I rise amount of settlement was $l5.3 billion yer said that wouldn’t be a decent tip for his in support of the amendment by the in legal fees and $2.2 billion or $2.3 bil- house staff,’’ Mr. Peters said in a telephone Senator from Alabama and the Senator lion, or about 15 percent. interview. from North Carolina to try to put at Mr. President, those are outlandish There’s a similar financial flap among law- least some limit or some reasonable- fees. Those are fees in the neighbor- yers who represented the state of Texas and ness on legal fees in this bill. hood of $100,000 per hour. If those other plaintiffs in a class-action suit against I have heard some of my colleagues tobacco companies that was settled for $15.3 States negotiated, maybe that is one billion. There, Gov. George W. Bush is fight- say, ‘‘Wait a minute. What about the thing. But for crying out loud. We ing a contingency-fee agreement authorized Michael Jordans and the Bill Gates, shouldn’t set up a fund that is going to by the state attorney general and upheld by and others?’’ They are not com- compensate trial attorneys all across a federal judge that will give the lawyers 15 pensated out of the public trust fund the country to receive those kind of percent of the recovery, or $2.3 billion over 15 that comes from a tax, that comes fees, and act like we are doing it so we years. from a fee, whichever you want to call can reduce teenage consumption and ‘‘This is simply a giveaway of the state’s it. I call it a tax that is set up by Con- addiction to tobacco. That is ridicu- money,’’ Lester Brickman, professor of legal ethics at the Benjamin N. Cardozo School of gress. Congress is in the process of rais- lous. Law in New York, said of the fortune Mr. ing taxes and fees in the first 5 years of Certainly it makes sense for us, if we Angelos could receive. $102 billion. That is a lot of money. are going to create this trust fund, if But Mr. Angelos, in an interview, coun- And over the 25-year period, you usu- we are going to have amendments, as tered: ‘‘We competed with five other firms, June 11, 1998 CONGRESSIONAL RECORD — SENATE S6173 and we were selected. We have a contin- only way the McCain anti-smoking measure it. All the States that have settled, the gency-fee contract that will provide us with will ensure extreme wealth for many trial four States that have settled, not one 121⁄2 percent of recovery if we win the case lawyers. The measure has been amended to dime comes out of the Federal Treas- [against tobacco companies]. If we lose, we remove a proposed $8-billion-a-year liability ury; not one dime comes out of the would receive no fee.’’ cap, he said, so ‘‘there will be a rush to As of April, the tobacco industry had al- courthouses all over the country’’ by trial money that is going to be raised ready offered Maryland $4 billion to settle its lawyers representing plaintiffs in tobacco through the tobacco industry in this tobacco lawsuit, which would give Mr. suits. An estimated 800 liability lawsuits bill. It is all paid by the industry. They Angelos $500 million. But the Baltimore law- against the tobacco industry are currently settled. They agreed to pay the attor- yer said Friday the expects the state will re- pending, an industry official said. neys’ fees. In fact, not one of the fig- ceive ‘‘a little better ’’ than $7 billion, which Mr. Peters of the Florida Attorney Gen- ures that the Senators have yet used in would entitle him to $875 million. eral’s Office said the compensation law firms this debate is an accurate or real fig- Mr. Angelos pointed out that his firm will receive from that state’s tobacco settlement pay all litigation costs, which he says could will just be the first of many lucrative pay- ure. Not one. Why? Because there is run anywhere from $1 million to $50 million. ments. ‘‘Some of these legal firms rep- not a State where an attorney has yet ‘‘We have discussed a [possible] reduction resented 25 or 30 states’’ that brought class- been paid. Not one. And the reason of the fee. We’re reasonable,’’ he said, but action lawsuits against tobacco firms, he they haven’t been paid is that in every added he has nothing for which to apologize. said. State it is going to arbitration. It is ‘‘A San Francisco law firm that competed An editorial last week in the Wall Street with us offered to underwrite $1 million but going to be settled by the courts. It is Journal described Richard Scruggs, a Mis- not going to be settled in the way they they wanted 40 percent of recovery,’’ he said. sissippi lawyer who helped broker tobacco Legal compensation experts say Sen. John are saying. So they are talking about settlements in three states and who is rep- McCain’s tobacco bill, the fate of which the resenting at least another seven states as a all of these fictitious numbers, the ini- Senate could decide this week and which has ‘‘tobacco billionaire-in-waiting.’’ Mr. tial contracts. None of the new States no limits on attorney fees, promises to make Scruggs happens to be the brother-in-law of that have come to the suits are, in billionaires out of some plaintiffs’ lawyers Senate Majority Leader Trent Lott, Mis- fact, using the level of the early con- who are already millionaires. ‘‘That is jackpot justice for the trial law- sissippi Republican, said Mr. Brickman. tracts with the lawyers when it was at Wayne Hogan, a Jacksonville, Fla., lawyer, yers, who are already Washington’s ultimate 25 percent. Do you know what they are special-interest group,’’ said Sen. Lauch said in a telephone interview it would ‘‘not using? They are using about 2 or 3 per- be appropriate’’ to say whether he wants to Faircloth, North Carolina Republican, who, cent now. This is a fictitious debate, with Sen. Jeff Sessions, Alabama Repub- receive $280 million for his work in the Flor- ida settlement, since that’s a matter to be one that we have been through before. lican, tried unsuccessfully to set a $250-an- I will summarize some arguments hour cap on legal fees paid out under pro- settled by arbitration. ‘‘But the work done was monumental and about it a little bit later. I will reserve posed federal tobacco legislation. Undeterred, the senators plan to try again very risky, and it resulted in the disclosure the remainder of my time. with a higher legal-fees cap, possibly as of documents that were hidden behind the The PRESIDING OFFICER. Who much as $1,000 per hour, aides said. closed doors of attorney-client privilege,’’ yields time? But Mr. Brickman of the Cardozo law Mr. Hogan said in an interview. Mr. SESSIONS addressed the Chair. ‘‘And the work achieved a result for Flor- school said contingency-fee lawyers ‘‘do not The PRESIDING OFFICER. The Sen- keep hourly time records.’’ He explained: ida taxpayers that was tremendous for public health,’’ he added. ator from Alabama. ‘‘They recognize an effective hourly rate Mr. SESSIONS. I believe the Senator would be thousands and thousands of dollars Asked if he would be satisfied with $23 mil- per hour, and such figures would be a public lion in compensation, Mr. Hogan replied, from Texas would like 3 minutes. I relations disaster,’’ he said,. ‘‘That would be less than what the contract would be glad to yield to the Senator Mr. Brickman estimates that the Texas [between the state and trial lawyers] called from Texas. I appreciate his leadership lawyers spent, at most, 25,000 hours on their for.’’ on this related issue. He has done a tre- That’s where Florida state officials and the case, which did not go to trial. ‘‘The Texas mendous job in analyzing this legisla- lawyers will be getting $2.3 billion, or $92,000 lawyers disagree. Mr. Peters and Gov. Chiles argue that under a contingency-fee contract tion. an hour. . . . I think the Florida lawyers will The PRESIDING OFFICER. The Sen- get $15,000 to $25,000 per hour,’’ he said. authorized by state law, Mr. Hogan and other Stephen Later, legislative counsel for Mr. private lawyers are entitled to an amount ator from Texas. Faircloth, noted that Texas Attorney Gen- ‘‘not to exceed’’ 25 percent of the Medicaid Mr. GRAMM. Mr. President, I was eral Dan Morales already has said taxpayers funds spent to treat smoking-related dis- yielded 3 minutes. Is that right? in that state will be paying a share of the orders or ‘‘an amount that’s commercially The PRESIDING OFFICER. The Sen- $2.3 billion in legal fees that a federal judge reasonable.’’ ator did not specify. has approved in that state’s $15.3 billion set- If the fees issue goes to arbitration, Mr. Peters said, it’s virtually certain the ‘‘rea- Mr. GRAMM. Let me take 3 minutes. tlement. The PRESIDING OFFICER. The Sen- ‘‘It’s immoral to reach into the pockets of sonable’’ fee the panel would award would working-class taxpayers in order to send bil- exceed what the lawyers could get for Medic- ator from Texas. lions of dollars to trial lawyers so they can aid fund recovery. Mr. GRAMM. Mr. President, our col- buy another Lear jet, another vacation home But Mr. Hogan and other lawyers contend league from Massachusetts says not or another private island,’’ said Mr. Fair- that, under the contingency-fee contract one cent of these settlements comes cloth, who is also mindful about how much that was negotiated, they are entitled to ‘‘25 from the money in this bill. But this tobacco companies in his state are required percent of the [full] recovery’’ amount. ‘‘The lawyers filed charging liens against bill makes the payment of these settle- to pay in litigation fees. ments possible. The consumer is going ‘‘We all know attorneys are paid well in the state, saying they are entitled to 25 per- our society. But these are the mother of all cent of everything,’’ said Mr. Peters. to pay every penny of this in higher attorneys’ fees. We’re talking about the ‘‘This has embargoed 25 percent of the fees and taxes. So the net result is that greatest attorneys’ fees in the history of the state’s first payment from tobacco compa- while the Federal Government is not world,’’ said John Cox, spokesman for Mr. nies. In other words, $187.5 million is tied paying these bills, blue-collar workers Sessions. down in court due to the lawyers’ liens,’’ he who smoke are going to end up paying The goal of the tobacco settlements ‘‘was said. In addition, Mr. Peters said, ‘‘We had a each and every one of these bills. to recoup Medicaid money the states spent I want to remind my colleagues that to treat patients with smoking-related ill- court remove $203.3 million from our escrow nesses and to prevent youth smoking. It’s account for money to pay the lawyers. This on the front page of the Washington not right for these lawyers to walk away money had been earning 51⁄2 percent interest. Times, in a story about these $92,000- with this kind of money,’’ Mr. Cox said. So we’re losing $31,000 a day interest. Plus an-hour fees paid to the attorneys, had The McCain bill calls for legal fees to go to the court imposed a 1-percent handling fee. the following quote: So we’re out-of-pocket $35,000 a day.’’ arbitration, which has no fee limits. The lawyers laugh at a payment of $280 Asked to comment on the size of some of Mr. KERRY. Mr. President, I yield million for all 12 law firms, which would be the legal fees being discussed, Scott Wil- myself such time as I may use. more than $23 million per attorney. This is liams, a tobacco industry spokesman said, The PRESIDING OFFICER. The Sen- $23 million an attorney that they are talking ‘‘The industry will pay reasonable attorneys’ ator from Massachusetts. about as a payment. ‘‘One lawyer said that fees as determined by independent [arbitra- Mr. KERRY. Mr. President, I know wouldn’t’’—that is, $23 million —‘‘be a de- tion] panels.’’ He did not quantify that state- cent tip for his house staff.’’ ment. the Senator from Alabama wants to go. Mr. Later, spokesman for Mr. Faircloth, But let me just say to my friend from Twenty-three million dollars would noted that staggering legal fees aren’t the Oklahoma, I am not sure he is aware of not be a decent tip for his house staff. S6174 CONGRESSIONAL RECORD — SENATE June 11, 1998 How many Americans think $23 million ready provides for the undermining, money over to lawyers who are making is a pittance? The fact that we have in going around the agreement. You can’t $92,000 per hour? I submit it is uncon- this bill $92,000 an hour for plaintiffs’ have it both ways. scionable, it is something that should attorneys is piracy; it is outrageous; it But I submit to you that it is par- not happen. It is a matter of the great- is predatory on the working men and ticularly interesting. The arbitration est importance to this body, and I ask women of this country who have to panel is composed of three persons, one that this amendment be supported. work hard for a living. Many of them chosen by the plaintiff, which is the at- Mr. GRAMM. Will the Senator yield have become addicted to tobacco and torney general; one chosen by the at- for a question? nicotine, and they are going to have to torney, which is the plaintiff’s lawyer; Mr. SESSIONS. I yield to the Sen- pay higher prices and higher taxes to and those two choose the third one. ator from Texas. pay $92,000 an hour to attorneys who Those are the people who entered into Mr. GRAMM. I am sure the Senator say a $23 million payment for an indi- the agreement. What kind of agree- has seen thousands of articles where vidual attorney ‘‘wouldn’t be a decent ment is going to come out of arbitra- outside groups rate how much money tip for his house staff.’’ tion from that? people received from groups that had If people do not have their stomachs Let me just say that the $2.5 billion interests before the Congress. You have turned at this kind of behavior, at this for four lawyers in Texas equals about seen thousands of those articles. Have predatory, outrageous behavior, then $500 million each. That is more than we you ever seen any of those groups rate absolutely nothing will turn their spend each year on diabetes in the how much money plaintiffs’ attorneys stomachs. I believe we have an obliga- United States. That is the kind of have contributed on a bill where the tion to limit these fees to protect money we are talking about—$2.5 bil- plaintiffs’ attorneys are the single working Americans who will have to lion. largest beneficiary of the bill? pay these prices. Let me make a couple of other Mr. SESSIONS. I have not. I think it It is important to note that we al- points. The arbitration clause, as I is an absolutely appropriate question ready have in the bill a procedure pointed out, is ineffective and totally a to ask. I think it is appropriate to ask whereby the Federal Government is sham, in my opinion, and will not pro- how much tobacco gives. I think it is sanctioning these fees with a review by tect the taxpayers. Of contract rights, appropriate to ask how much trial law- attorneys. What the Senator from Ala- they say you can’t violate a contract. yers give. And my best judgment is, bama is saying is, rather than having a And this I say would be the principle the trial lawyers are giving more to group of lawyers review these fees for we are dealing with: A person who this body than tobacco companies. $92,000 an hour, rather than having the signs a contract can keep the U.S. Con- The PRESIDING OFFICER. The provision which was in the original gress or any other agency from passing Chair will advise the time allotted to bill, we ought to have a clear defini- a law that conflicts with that contract. the Senator from Alabama has expired. tion, and the Senator from Alabama It is just that simple. The Senator from Massachusetts. has defined it very simply: Give them That is the traditional law of Amer- Mr. KERRY. Mr. President, I will be $1,000 an hour. How many waitresses or ica. We do it when we alter the mini- brief and this side will be brief. We will truck drivers who will be paying this mum wage. Nobody has been crying yield back some time. I know my col- tax will take $1,000 an hour? Every sin- that the tobacco companies’ contract leagues have pressing flight schedules. gle one of them. to run advertising is going to be termi- I yield myself such time as I may use. The PRESIDING OFFICER. The Sen- nated by these things. When Congress Let me say to my colleague from ator has used his time. legislates comprehensively, it can leg- Texas, earlier this morning he was on Mr. KERRY. Mr. President, par- islate on matters involving contracts. the floor of the U.S. Senate suggesting liamentary inquiry. How much time re- It is done every day. And I remind the how outrageous it was for the U.S. Sen- mains? Members of this body that, under the ate to tell a State what it ought to do The PRESIDING OFFICER. The Sen- Equal Access to Justice Act, the top or how it ought to spend its money. He ator from Massachusetts has 17 min- fee is $125; under Criminal Defense At- said at that time, ‘‘If I wanted to do utes 34 seconds remaining; the Senator torneys, they are paid $75 per hour. I that, I would run for the Texas legisla- from Alabama, 5 minutes 23 seconds. think this fee is particularly generous, ture—I would run for the State legisla- Mr. MCCAIN. Mr. President, could I Mr. President. I will share this with ture.’’ I assume this amendment ask the indulgence of my colleagues: the body. Everybody has been talking amounts to his announcement of can- We have a colleague who has to leave about how much this body is influenced didacy for the State legislature, be- in about 7 minutes, if we could possibly by tobacco contributions. I want to say cause here he is, telling them how they consider yielding back some of the I didn’t take any contributions from can spend money in State contracts in time so that the Senator from Arkan- tobacco, and I do not take tobacco con- the State. sas, who has an engagement, could tributions. But this is instructive These are private contracts. Lo and vote. about the influence and the involve- behold, here is the Republican Party I yield the floor. ment of trial lawyers from 1990 to 1994. that suddenly has decided it can inter- The PRESIDING OFFICER. Who And I submit they have been more fere with the private contracting of yields time? heavily involved in recent years. But private sector enterprises. I am aston- Mr. SESSIONS. Mr. President, I we have these numbers. ished by that. Not only that, almost thank the Senator from Texas. And he Plaintiff lawyers in these States: every single fact on which—not fact, referred to the proposal in the bill Alabama, my home State, Senator every single assertion that they have dealing with attorneys’ fees. I say it is, GRAMM’s State of Texas, and Califor- made today, trying to claim it as a at best, ambiguous, and it is a testa- nia, gave $17 million. During that time, fact, is incorrect. There is no $92,000 ment to the drafters, in my opinion. I the Democratic National Committee in mentioned anywhere in this legisla- am not sure what it means, but it says all 50 States gave $12 million; the Re- tion, and no lawyer has been paid this: If the attorney involved is unable publican National Committee in all 50 $92,000 an hour. In fact, every single to agree with the plaintiff—that is, the States gave $10 million; big oil in Ala- one of those cases is subject to arbitra- attorney general—with respect to any bama, California, and Texas gave $1.8 tion. Take the Florida case. The judge dispute that may arise between them million. threw it out because it was excessive— regarding the fee agreement, then they I don’t consider that determinative threw it out. And they are going to re- can go to arbitration. of this issue, but I would just say this. solve what is an appropriate fee. Now, what does that mean? When you I think some people need to ask them- What the Senator does not say is go to arbitration, you have a fee agree- selves some serious questions about there are a whole set of criteria they ment. You are talking about the agree- public policy. If they care about chil- have to use to decide that fee. They ment. Now, some argue, well, this dren, if they care about fairness and have to consider the time and the labor agreement allows the arbitrators to go justice, if they care whether or not required by plaintiff. They have to around the fee agreement. To that I they tax a waitress $1,000 a year for her show time sheets. They are going to would say, if so, then the legislation al- cigarettes, should we be turning that have to come in and prove how much June 11, 1998 CONGRESSIONAL RECORD — SENATE S6175 time they worked. They are going to is, the Senator from Texas has said in Hatch Lautenberg Rockefeller Hollings Leahy Roth have to show how difficult the question this bill it provides for $92,000 an hour Inouye Levin Sarbanes was and the novelty of the question. to counsel. That is not true. You can- Jeffords Mikulski Shelby They have to show they have the req- not find that on any page of this legis- Johnson Moseley-Braun Smith (OR) uisite skill for those claims or to liti- lation. It is just not accurate. It is a Kennedy Moynihan Thompson Kerrey Murray Torricelli gate them. They have to show the fiction. It is made up out of whole Kerry Reed Wellstone amount that was involved in their liti- cloth. Kohl Reid Wyden gation and the results that they The fact is, what is provided for is, Landrieu Robb achieved. And they have to show the where there is a disagreement between NAYS—45 undesirability of the action. the parties, that an arbitration panel Abraham Enzi Lugar That is not an easy standard. I sug- determine what are the appropriate Allard Faircloth Mack gest the notion that arbitration— fees based on a set of criteria that in- Ashcroft Frist McCain Bond Gramm McConnell which requires both sides to come up cludes the level of effort that needed to Brownback Grams Murkowski with two additional people that they be expended, the quality of the legal Burns Grassley Nickles both agree on—is not somehow subject counsel’s work, the amount of the in- Byrd Gregg Roberts to a test is ridiculous. That is a tough Chafee Hagel Santorum vestment that they have made. Frank- Coats Helms Sessions process. ly, $1,000 an hour is too much if some- Collins Hutchinson Smith (NH) All the other arguments we are lis- body just went and copied the case Coverdell Hutchison Snowe tening to today are the exact same ar- from somewhere else and then filed it. Craig Inhofe Stevens Dodd Kempthorne Thomas guments the Senate voted on pre- But it is much too little in the case of Domenici Kyl Thurmond viously. There is not one different those who invested millions of dollars Dorgan Lieberman Warner thing here except that, instead of hav- in court preparation of their own re- ANSWERED ‘‘PRESENT’’—2 ing Congress be the accounting factor, sources without knowing whether they Boxer Lott now they want to make the court the would be victorious or not. In that accounting factor. It is ridiculous. case, it is much too little. NOT VOTING—3 Mr. President, I yield 2 minutes to So the problem we have with this Bingaman Bumpers Specter the Senator from Washington. amendment is it is one-size-fits-all. The motion to lay on the table the amend- The PRESIDING OFFICER. The Sen- That is why we adopted an arbitration ment (No. 2701) was agreed to. ator from Washington. approach that would allow those who FORCE DOWN LANGUAGE IN DRUG-FREE Mr. GORTON. Mr. President, al- have a difference to have it worked out NEIGHBORHOODS ACT though I am speaking on the same side so there would be adequate compensa- Mr. INHOFE. Mr. President, I would of this proposition as did the Senator tion, but so there would not be the like to enter into a colloquy with my from Massachusetts, I believe it is ap- kind of ripoff that is, indeed, potential friend, Senator COVERDELL, to clarify a propriate for us to deal with this issue. without what is provided for in the un- situation that was brought to my at- Parties whose fee agreements we are derlying McCain bill. tention during consideration of the interfering with have come to the Con- Several Senators addressed the Senator’s Drug-Free Neighborhoods gress of the United States to ratify set- Chair. amendment to S. 1415. As an original tlements that have already been made. The PRESIDING OFFICER. Who cosponsor of the amendment, I fully If we can vote here on how much yields time? support the Senator’s efforts to stop money States will receive and how Mr. KERRY. Mr. President, I yield the spread of drugs into our commu- they have to spend that money, if we the remainder of my time. nities; however, one provision has the can change the law to shift the burdens I move to table the Sessions-Fair- unintended effect of raising serious in tobacco litigation, we can address cloth amendment. safety concerns for general aviation pi- the issue of attorney’s fees. Mr. President, I ask for the yeas and lots. I also agree with the amendment’s Specifically, the amendment permits nays. sponsors that we can and should set the officers to order an aircraft to land, The PRESIDING OFFICER. Is there a attorneys’ maximum compensation. I but does not require any reasonable sufficient second? do not agree, however, that the amount suspicion of criminal activity. It also There is a sufficient second. proposed in this amendment is reason- could make pilots responsible for pay- The yeas and nays were ordered. able. It is too much for lawyers who ing thousands of dollars to reclaim bring lawsuits in the future, when, The PRESIDING OFFICER. The their aircraft, even if they are totally under this bill, it will be much easier question is on agreeing to the motion innocent of any wrongdoing. to prevail against tobacco manufactur- to lay on the table amendment No. As a pilot for over 40 years, I can as- ers. At the same time, the amount is 2701. The yeas and nays have been or- sure you that the ‘‘order to land’’ could considerably too little for those highly dered. be a dangerous and traumatic experi- skilled attorneys who took on the to- The clerk will call the roll. ence for a pilot. In fact, the Inter- bacco companies on novel theories The legislative clerk called the roll. national Standards, Rules of the Air, years ago, when their chances of win- Mrs. BOXER (when her name was published by the International Civil ning were extremely remote. called). Present. Aviation Organization says ‘‘intercep- If we are going to set maximum at- Mr. LOTT (when his name was tions of civil aircraft are, in all cases, torneys’ fees, we ought to set them on called). Present. potentially hazardous.’’ a reasonable basis, a basis that fully Mr. NICKLES. I announce that the As I understand it, the intent of the accounts for the relative amounts of Senator from Pennsylvania (Mr. SPEC- amendment was to provide additional risk, skill, and investment on the law- TER) is absent because of illness. authority to U.S. law enforcement offi- yers’ part. Unfortunately, this amend- Mr. FORD. I announce that the Sen- cers to curtail border drug smuggling, ment does not do this. It does not ator from New Mexico (Mr. BINGAMAN), which I am sure all us agree is a laud- make distinctions that I believe are and the Senator from Arkansas (Mr. able goal. However, because of the po- fair and proper. For this reason, the BUMPERS) are necessarily absent. tential danger and immense burden to amendment is not a good one, and I be- The result was announced—yeas 50, general aviation pilots, I have worked lieve that it should be tabled. nays 45, as follows: with my friends at the Aircraft Owners Mr. KERRY. Mr. President, I yield 1 [Rollcall Vote No. 158 Leg.] and Pilots Association to develop some minute to the Senator from North Da- YEAS—50 relatively minor changes that could be kota. Akaka Cleland Feingold done to take care of general aviation’s The PRESIDING OFFICER. The Sen- Baucus Cochran Feinstein concerns. ator from North Dakota. Bennett Conrad Ford Mr. COVERDELL. I thank my friend, Mr. CONRAD. Mr. President, I associ- Biden D’Amato Glenn Senator INHOFE, for bringing this issue Breaux Daschle Gorton ate myself with the remarks of the Bryan DeWine Graham to my attention. I understand the po- Senator from Washington. The reality Campbell Durbin Harkin tential safety problems involved in the S6176 CONGRESSIONAL RECORD — SENATE June 11, 1998 ‘‘order to land’’ provisions, and I agree AMENDMENT NO. 2702 TO AMENDMENT NO. 2437 would even say seduces youngsters into that we cannot jeopardize the safety of (Purpose: To disallow tax deductions for ad- smoking. If we are serious about pre- aircraft flying near the border for inno- vertising, promotional, and marketing ex- venting teenage smoking, underage cent purposes. I understand that we penses relating to tobacco product use un- smoking, we must have effective ways can achieve the goal of fighting drug less certain requirements are met) to curtail the advertising to marketing smuggling without jeopardizing safety Mr. REED. Mr. President, I send an that is directly targeted to youngsters or undermining the rights of pilots by amendment to the desk and ask for its in our society. The record from numer- requiring reasonable suspicion and add- immediate consideration. ous documents released in the ongoing ing innocent owner provisions. The PRESIDING OFFICER. The litigation suggest strongly, overwhelm- In fact, it was my intention to make clerk will report. ingly that the tobacco industries have the changes you have suggested. How- The legislative clerk read as follows: for years deliberately targeted young- ever, because of a parliamentary over- The Senator from Rhode Island [Mr. REED] sters as young as 12, 13 and 14 years old sight, the corrections were not made for himself, Mrs. BOXER, Mr. WYDEN, Mr. to get them to start smoking. KENNEDY, Mr. DASCHLE, Mr. DURBIN, Mr. prior to the vote on the amendment. WELLSTONE, Ms. FEINSTEIN, and Mr. CONRAD If we are serious about our primary I appreciate your leadership in re- proposes an amendment numbered 2702 to goal, which is to eliminate access to solving this issue. With your assist- amendment No. 2437. smoking by underage smoker, then we ance, I will work with the conferees Mr. REED. I ask unanimous consent must pass this amendment. should S. 1415 reach conference to reading of the amendment be dispensed make the necessary changes to resolve In anticipation of further debate to- with. morrow on this particular measure, I these problems or to eliminate the pro- The PRESIDING OFFICER. Without yield the floor and I suggest the ab- vision entirely as I understand the sta- objection, it is so ordered. sence of a quorum. tus quo is acceptable. The amendment is as follows: Mr. INHOFE. Thank you. I appre- At the appropriate place, insert the follow- The PRESIDING OFFICER. The ciate the Senator’s assistance. This is ing: clerk will call the roll. an issue that is very important to gen- SEC. ll. DISALLOWANCE OF TAX DEDUCTIONS The assistant legislative clerk pro- eral aviation pilots, and I look forward FOR ADVERTISING, PROMOTIONAL, ceeded to call the roll. to working with you to correct this AND MARKETING EXPENSES RELAT- ING TO TOBACCO PRODUCT USE UN- Mr. LOTT. Mr. President, I ask unan- problem. LESS CERTAIN ADVERTISING RE- QUIREMENTS ARE MET. imous consent that the order for the EXPLANATION OF ABSENCE quorum call be rescinded. Mr. BIDEN. Mr. President, last night (a) IN GENERAL.—Part IX of subchapter B of chapter 1 of subtitle A of the Internal Rev- I was not present to vote on the two The PRESIDING OFFICER. Without enue Code of 1986 (relating to items not de- objection, it is so ordered. motions to table because I was in Wil- ductible) is amended by adding at the end mington attending the high school the following: Mr. LOTT. Mr. President, for the in- graduation ceremony of my godson and ‘‘SEC. 280I. DISALLOWANCE OF DEDUCTION FOR formation of our colleagues, there will nephew, Cuffe Owens. TOBACCO ADVERTISING, PRO- be no further votes tonight. The Senate When I left the Senate yesterday, it MOTIONAL, AND MARKETING EX- will debate a Democratic amendment PENSES UNLESS CERTAIN ADVER- was not clear that any votes would TISING REQUIREMENTS ARE MET. and the Gramm amendment to the to- take place later in the evening and I ‘‘(a) IN GENERAL.—No deduction shall be al- bacco bill during the remainder of to- did not anticipate that I would miss lowed under this chapter for any taxable day’s session and Friday’s session of any votes. Nonetheless, after consulta- year for expenses relating to advertising, the Senate. The Senate could also con- tion with my colleagues, I left with the promoting, or marketing cigars, cigarettes, sider the higher education bill, or voca- belief that, If these votes were ordered, smokeless tobacco, pipe tobacco, roll-your- tional education, or NASA authoriza- my absence would not affect the out- own tobacco, or any similar tobacco product tion, or the reauthorization of the unless the taxpayer maintains compliance come, and it did not. Had I been during such year with the advertising and Drug Czar office. These are all bills present, I would have voted to table marketing provisions of part 897 of title 21, that are relatively noncontroversial, or the Gramm amendment, and against Code of Federal Regulations, that were pub- there may be an amendment or two tabling the Daschle amendment. lished in the Federal Register on August 28, that Senators want to offer. We are Mr. MCCAIN. Mr. President, after 1996. trying to take advantage of time that consultation with the majority leader ‘‘(b) GENERAL DEFINITIONS.—For purposes may be available tomorrow to consider and the Democrat leader and the Sen- of this section, any term used in this section one of these bills. We want all Senators which is also used in section 5702 shall have ator from Massachusetts, it is now our the same meaning given such term by sec- to be aware that we are trying to clear intention to move to an amendment on tion 5702.’’. one of these four to be considered to- the Democratic side and lay it down, (b) CONFORMING AMENDMENT.—The table of morrow after the Democratic amend- tomorrow morning debate it, and then sections for such part IX is amended by add- ment and the Gramm amendment. move to a Gramm amendment after ing after the item relating to section 280H However, there will be no votes during that. the following: the session on Friday. There will just It is my understanding that it is the ‘‘Sec. 280I. Disallowance of deduction for be debate on these two amendments intention of the majority leader, and I tobacco advertising, pro- and any bill that can be cleared out of am sure he will make it clear, to have motional, and marketing ex- this group of four. votes on these some time around 6 penses unless certain advertis- ing requirements are met.’’ Any votes ordered with respect to the o’clock on Monday evening, dispose of amendments on the legislation just those amendments, and it would be our (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable identified, the tobacco bill, will be intention to go back to a Democrat years beginning after December 31, 1998. postponed to occur on Monday at a amendment. Mr. REED. Mr. President, this time to be determined by the two lead- I yield the floor. amendment would disallow the deduc- ers, but not before 5 o’clock. We would Mr. MCCAIN. I suggest the absence of tion for advertising expenses for to- like, though, to have those two votes a quorum. bacco companies who violate the Food back-to-back on the two amendments, The PRESIDING OFFICER (Mr. BEN- and Drug Administration rules with re- if they are necessary, to the tobacco NETT). The clerk will call the roll. spect to advertising. It is a sensible bill, as close to 5 o’clock as possible. The legislative clerk proceeded to and constitutionally sound way to re- We may begin at 5, or shortly there- call the roll. inforce the important provisions that after, and have the two back-to-back. Mr. KERRY. I ask unanimous con- are necessary to prevent easy access to Then any vote, if necessary on any bill sent that the order for the quorum call smoking by teenagers. The record has that is cleared, would not occur until be rescinded. shown very clearly that the history of Tuesday morning at approximately 9:30 The PRESIDING OFFICER. Without the tobacco industry is a history of ad- or 10 o’clock. We will make that spe- objection, it is so ordered. vertising that invites, entices, some cific time available later. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6177 MORNING BUSINESS possess a desire to serve, a strong sense are assured that we will remain one Mr. LOTT. Mr. President, I ask unan- of patriotism, and a willingness to step ahead of any nation that might imous consent that there now be a pe- make sacrifices so that others may be threaten our security, and that we will riod for the transaction of routine safe. We have created a fighting force truly have a force capable of meeting morning business with Senators per- that uses its mind as much as its and defeating any threat to our nation, mitted to speak therein for up to 10 might. A force that is able to adapt to her people, and our interests. minutes each. fluid contingencies just as effectively As we mark this 223rd anniversary of The PRESIDING OFFICER. Without as it is able to stick to a battle plan. the United States Army, it is an appro- objection, it is so ordered. There is no military force in the world priate time to celebrate the successes that can match the abilities, capabili- of that service; the sacrifices made by f ties, and spirit of the American soldier millions of soldiers, including the ulti- 223RD ANNIVERSARY OF THE U.S. or the United States Army, there never mate sacrifice; and the invaluable con- ARMY has been and there never will be. tribution these men and women have The very history of this nation and made to keeping the United States and Mr. THURMOND. Mr. President, for its Army helps to forge the spirit of the her citizens safe and free. Indeed, the almost two and one quarter centuries, modern soldier. The soldier of today history of our Army is a proud one, and the United States Army, more than can look back on more than 200 years as we approach the 21st Century, I any other American institution, has of heritage and fighting spirit that know that its future will eclipse all its stood at the forefront of protecting the helps to mold the mettle of those who previous accomplishments. borders, people, and ideals of our na- stand firm for democracy and the safe- tion. Today, I am pleased to have this ty of our nation. Rogers’ Rangers, who f opportunity to pay tribute to the Army fought in the New Hampshire moun- DEATH OF MAJ. GEN. JIM on the 223rd anniversary of its found- tains during the French & Indian Wars ing. are the forefathers of today’s Ranger PENNINGTON Formed on June 14, 1775, the United Battalions. The same grit and deter- Mr. THURMOND. Mr. President, I States Army is older than the nation mination that saw the first American rise today to pay tribute to a man who itself, and for more than two centuries, soldiers through a brutal winter at was known to many of us in this Cham- its soldiers have stood tall as they car- Valley Forge was evident in Bastogne, ber, retired Major General Jim Pen- ried out their duties patriotically and Belgium in 1945 when the 101st Air- nington, who passed away on June 5, selflessly. In the history of the Army, borne Division, though surrounded and 1998. more than 42 million Americans have outnumbered by German Forces, re- Those of us who worked on national raised their right hands, both in times fused to surrender and by stubbornly security and veterans related matters of crisis and peace, to take an oath to standing fast, they helped to win the knew General Pennington very well. He protect and defend the nation from all Battle of the Bulge. The bravery dem- served as both the President of the Na- enemies foreign and domestic. In that onstrated by Captain Roger Donlan, a tional Association for Uniformed Serv- time, soldiers have been called to arms Special Forces Officer who commanded ices and the Administrator for the So- numerous times in order to preserve Camp Nam Dong in the I Corps Tac- ciety of Military Widows. In those ca- this Republic. From the Battle of tical Zone in 1966, who was repeatedly pacities, he was an able and effective Cowpens during our War for Independ- and seriously wounded while battling advocate for a strong defense and for ence, to Bosnia, where our troops help off an enemy battalion of superior size providing for an appropriate quality of to maintain a fragile peace, those who was recognized by his winning the first life for those who serve and have served serve prove that there is no finer citi- Medal of Honor awarded during the the Nation as members of the armed zen, no better warrior, and no more Vietnam conflict. Twenty- seven years forces. compassionate peacemaker than a sol- later, two Special Operations soldiers General Pennington had an impres- dier in the United States Army. were decorated with the Medal of sive career as a soldier. He joined the The success and excellence of our sol- Honor for making the ultimate sac- Army on June 6, 1944, the day the Al- diers and Army are due to many con- rifice in the streets of Mogadishu, So- lies invaded Normandy and began their tributing factors, but certainly the malia fighting to protect a critically march toward Germany and victory, most important is that we live in a na- wounded American helicopter pilot. and he fought in the Battle of the tion founded on the ideals of a demo- Their sacrifice allowed that pilot to Bulge. In his more than 37-year career, cratic government. We have created a live, and their actions proved that Jim Pennington rose from the rank of society that truly affords more lib- there is no greater bond than the one private to sergeant major, and then ul- erties, more freedoms, and more oppor- between soldiers. timately major general, the rank he tunities than any other nation in the Throughout the Army’s history, suc- held when he retired from military world. While we may have some dif- cess has been based on an ability to re- service in 1981. ferences amongst ourselves, and some sist complacency, and while today’s As many tens of thousands of other problems which must be resolved, no soldiers are justifiably proud of their World War II veterans did, Jim Pen- quarrel or dispute will ever undermine past, they are looking and working to- nington used the G.I. Bill to get a col- the unity of our 50 States. It is this ward the future. In battle labs across lege education. This was an invaluable Constitutionally mandated, democratic the nation soldiers, strategists, sci- program that not only provided an im- form of government, where every citi- entists, and designers are working in portant benefit to those who spent zen is free to speak his or her mind, concert to field an Army that will be years of their lives in military service, where every American is protected by able to dominate the battlefield of the but it created a generation of Ameri- the laws of the land, and every person next century. Revolutions in weapons, cans who possessed the skills and has the chance to succeed that makes communications, tactics, and strategy knowledge required to make the United the United States a promised land to are taking place and are being incor- States the world’s leader in matters of people throughout the globe. All of us porated into Army Doctrine. By the commerce, global security issues, and recognize this is a nation and system Year 2000, the Fourth Infantry Division technology. worthy of defending, and our soldiers will become the first fully digitized di- I had the pleasure of working closely are the men and women who have vol- vision in the Army, and by 2004 the with General Pennington on a number unteered to carry out this critical mis- Army will have its first digitized corps. of issues throughout his tenure as the sion. These digitized forces will ensure that President of the National Association While our soldiers have always been commanders know where they are, of Uniformed Services and the Admin- ‘‘America’s Finest’’, those who serve in where their troops are, and where the istrator of the Society of Military Wid- today’s Army are truly a breed apart. enemy is, and with this information, ows. I always welcomed his advice and These are men and women who are well dominate the battlefield. Through re- insight, and without question, he educated, well trained, and well search and development efforts like the served the members and organizations equipped. They are individuals who ones that led to the digital division, we he represented well. Jim Pennington S6178 CONGRESSIONAL RECORD — SENATE June 11, 1998 will be greatly missed and my sym- police and armed forces of the Federal in Bosnia and Herzegovina. This threat pathies go out to his family and Republic of Yugoslavia (Serbia and to the peace of the region constitutes friends. Montenegro) and the Republic of Ser- an unusual and extraordinary threat to f bia, which has exacerbated ethnic con- the national security and foreign pol- flict and human suffering and threat- icy of the United States. THE VERY BAD DEBT BOXSCORE ens to destabilize other countries in On June 9, 1998, by the authority Mr. HELMS. Mr. President, at the the region, the United States, acting in vested in me as President by the Con- close of business yesterday, Wednes- concert with the European Union, has stitution and laws of the United States day, June 10, 1998, the federal debt decided to impose certain economic of America, including the International stood at $5,495,636,727,532.95 (Five tril- sanctions. Consistent with decisions Emergency Economic Powers Act (50 lion, four hundred ninety-five billion, taken at the meetings of the Contact U.S.C. 1701 et seq.), the National Emer- six hundred thirty-six million, seven Group of countries, consisting of the gencies Act (50 U.S.C. 1601 et seq.), and hundred twenty-seven thousand, five United States, the United Kingdom, section 301 of title 3 of the United hundred thirty-two dollars and ninety- Germany, France, Italy, and Russia, in States Code, I declared a national five cents). Birmingham, England, on May 16, 1998, emergency to respond to the unaccept- One year ago, June 10, 1997, the fed- and in Rome on April 29, 1998, the able actions and policies of the Bel- eral debt stood at $5,351,974,000,000 United States will impose a freeze on grade authorities and issued an Execu- (Five trillion, three hundred fifty-one the assets of the Governments of the tive order to implement the measures billion, nine hundred seventy-four mil- Federal Republic of Yugoslavia (Serbia called for by the Contact Group. That lion). and Montenegro), the Republic of Ser- order freezes the assets of the Govern- Five years ago, June 10, 1993, the fed- bia, and the Republic of Montenegro, ments of the Federal Republic of Yugo- eral debt stood at $4,298,707,000,000 and a ban on new investment in the Re- slavia (Serbia and Montenegro), the (Four trillion, two hundred ninety- public of Serbia. It is our intent to ex- Republic of Serbia, and the Republic of eight billion, seven hundred seven mil- empt the Government of Montenegro Montenegro that are under U.S. juris- lion). from these sanctions wherever possible. diction and, in concert with the other Ten years ago, June 10, 1988, the fed- The Contact Group originally agreed Contact Group countries, restricts ac- eral debt stood at $2,530,516,000,000 (Two in Rome on April 29 to impose these cess of those governments to the inter- trillion, five hundred thirty billion, sanctions in response to the increas- national financial system. That order five hundred sixteen million). ingly dangerous situation in Kosovo also prohibits new investment by Fifteen years ago, June 10, 1983, the and Belgrade’s failure to meet crucial United States persons, or their facilita- federal debt stood at $1,309,637,000,000 requirements concerning the adoption tion of other persons’ new investment, (One trillion, three hundred nine bil- of a framework for dialogue with the in the Republic of Serbia. It is our in- lion, six hundred thirty-seven million) Kosovar Albanian leadership and a sta- tent to exempt the Government of the which reflects a debt increase of more bilization package, as set out in earlier Republic of Montenegro, by means of than $4 trillion—$4,185,999,727,532.95 Contact Group meetings in London on licenses, from the prohibitions con- (Four trillion, one hundred eighty-five March 9, 1998, and in Bonn on March 25, tained in the order wherever possible. billion, nine hundred ninety-nine mil- 1998. The G8 Foreign Ministers re- That government has been included in lion, seven hundred twenty-seven thou- affirmed the need to impose sanctions the order to ensure effective implemen- sand, five hundred thirty-two dollars at their meeting in London on May 8– tation of sanctions against the Federal and ninety-five cents) during the past 9, 1998. The Russian Federation did not Republic of Yugoslavia (Serbia and 15 years. associate itself with these sanction Montenegro), of which the Republic of f measures. Montenegro is a constituent part. At the May 16 meeting in Bir- The order carries out these measures MESSAGES FROM THE PRESIDENT mingham, England, the Contact Group by: Messages from the President of the welcomed the establishment of a dia- —blocking all property, and interests United States were communicated to logue between Belgrade and the in property, of the Governments of the Senate by Mr. Williams, one of his Kosovar Albanian leadership. With the the Federal Republic of Yugoslavia secretaries. start of this dialogue, those Contact (Serbia and Montenegro), the Re- Group countries that had previously public of Serbia, and the Republic EXECUTIVE MESSAGES REFERRED agreed to implement economic meas- of Montenegro, including the prohi- As in executive session the Presiding ures against the Federal Republic of bition of financial transactions Officer laid before the Senate messages Yugoslavia (Serbia and Montenegro) with, including trade financing for, from the President of the United and the Republic of Serbia agreed that those governments; and States submitting two treaties and the proposed measure to stop new in- —prohibiting new investment by sundry nominations which were re- vestment in the Republic of Serbia United States persons, or their fa- ferred to the appropriate committees. would not be put into effect and that cilitation of other persons’ new in- (The nominations received today are they would review at their next meet- vestment, in the territory of the printed at the end of the Senate pro- ing the implementation of the freeze Republic of Serbia. ceedings.) on funds. However, the use of indis- The order provides that the Sec- f criminate force by the police and retary of the Treasury, in consultation REPORT CONCERNING THE GOV- armed forces of the Federal Republic of with the Secretary of State, is author- ERNMENTS OF THE FEDERAL Yugoslavia (Serbia and Montenegro) ized to take such actions, including the REPUBLIC OF YUGOSLAVIA (SER- and the Republic of Serbia has under- promulgation of rules and regulations, BIA AND MONTENEGRO) IN RE- mined the basis for dialogue. as may be necessary to carry out the SPONSE TO THE SITUATION IN The Contact Group has concluded purposes of the order. Thus, in the KOSOVO—MESSAGE FROM THE that the current situation in Kosovo is event of improvements in the actions PRESIDENT—PM 139 untenable and the risk of an escalating and policies of Belgrade with respect to conflict requires immediate action. It the situation in Kosovo, the Secretary The Presiding Officer laid before the has also found that, if unresolved, the of the Treasury, in consultation with Senate the following message from the conflict threatens to spill over to other the Secretary of State, would have the President of the United States, to- parts of the region. The United States ability, through the issuance of general gether with an accompanying report; attaches high priority to supporting or specific licenses, to authorize any or which was referred to the Committee the security interests of the neighbor- all transactions otherwise prohibited on Banking, Housing, and Urban Af- ing states and to ensuring security of by the order. Also, in implementing the fairs. borders. It is also of particular impor- sanctions, we intend to license trans- To the Congress of the United States: tance that developments in Kosovo actions necessary to conduct the offi- In response to the ongoing use of ex- should not disrupt progress in imple- cial business of the United States Gov- cessive military force in Kosovo by the menting the Dayton peace agreement ernment and the United Nations. We June 11, 1998 CONGRESSIONAL RECORD — SENATE S6179 further intend to issue licenses to EC–5334. A communication from the Direc- 98–ANM–06) received on June 9, 1998; to the allow humanitarian, diplomatic, and tor of the United States Information Agency, Committee on Commerce, Science, and journalistic activities to continue. transmitting, pursuant to law, the report of Transportation. EC–5347. A communication from the Gen- The declaration of a national emer- the Office of Inspector General for the period October 1, 1997 through March 31, 1998; to the eral Counsel of the Department of Transpor- gency made under Executive Order Committee on Governmental Affairs. tation, transmitting, pursuant to law, the re- 12808, and expanded in Executive Or- EC–5335. A communication from the Attor- port of a rule entitled ‘‘Standard Instrument ders 12810 and 12831, remains in effect ney General, transmitting, pursuant to law, Approach Procedures; Miscellaneous Amend- and is not affected by the June 9, 1998, the report of the Office of Inspector General ments’’ (Docket 29241) received on June 9, order. for the period October 1, 1997 through March 1998; to the Committee on Commerce, Science, and Transportation. WILLIAM J. CLINTON. 31, 1998; to the Committee on Governmental Affairs. EC–5348. A communication from the Gen- THE WHITE HOUSE, June 10, 1998. EC–5336. A communication from the Sec- eral Counsel of the Department of Transpor- f retary of Labor, transmitting, pursuant to tation, transmitting, pursuant to law, the re- port of a rule entitled ‘‘Standard Instrument MESSAGES FROM THE HOUSE law, the report of the Office of Inspector General for the period October 1, 1997 Approach Procedures; Miscellaneous Amend- ENROLLED BILL SIGNED through March 31, 1998; to the Committee on ments’’ (Docket 29242) received on June 9, At 12:17 p.m., a message from the Governmental Affairs. 1998; to the Committee on Commerce, EC–5337. A communication from the Sec- Science, and Transportation. House of Representatives, delivered by EC–5349. A communication from the Gen- Mr. Hays, one of its reading clerks, an- retary of Education, transmitting, pursuant to law, the report of the Office of Inspector eral Counsel of the Department of Transpor- nounced that the Speaker has signed General for the period October 1, 1997 tation, transmitting, pursuant to law, the re- the following enrolled bill: through March 31, 1998; to the Committee on port of a rule entitled ‘‘Modification of Class S. 423. An act to extend the legislative au- Governmental Affairs. E Airspace; Rugby, ND’’ (Docket 98–AGL–13) thority of the Board of Regents of Gunston EC–5338. A communication from the Chair- received on June 9, 1998; to the Committee Hall to establish a memorial to honor George man of the Consumer Products Safety Com- on Commerce, Science, and Transportation. EC–5350. A communication from the Gen- Mason. mission, transmitting, pursuant to law, the report of the Office of Inspector General for eral Counsel of the Department of Transpor- The enrolled bill was signed subse- tation, transmitting, pursuant to law, the re- the period October 1, 1997 through March 31, port of a rule entitled ‘‘Modification of Class quently by the President pro tempore. 1998; to the Committee on Governmental Af- E Airspace; Traverse City, MI’’ (Docket 98– fairs. At 6:21 p.m., a message from the EC–5339. A communication from the Chief AGL–16) received on June 9, 1998; to the Com- House of Representatives, delivered by Executive Officer of the Corporation for Na- mittee on Commerce, Science, and Transpor- tation. Mr. Hays, one of its reading clerks, an- tional Service, transmitting, pursuant to EC–5351. A communication from the Gen- law, the report of the Office of Inspector nounced that the House has passed the eral Counsel of the Department of Transpor- following bill, in which it requests the General for the period October 1, 1997 tation, transmitting, pursuant to law, the re- concurrence of the Senate: through March 31, 1998; to the Committee on port of a rule entitled ‘‘Modification of Class Governmental Affairs. E Airspace; Wooster, OH’’ (Docket 98–AGL– H.R. 3150. An act to amend title 11 of the EC–5340. A communication from the Direc- 19) received on June 9, 1998; to the Commit- United States Code, and for other purposes. tor of the Office of Personnel Management, tee on Commerce, Science, and Transpor- The message also announced that the transmitting, pursuant to law, the report of tation. House has agreed to the following con- a rule entitled ‘‘Reduction In Force Retreat EC–5352. A communication from the Gen- current resolution, without amend- Right’’ (RIN3206–AG77) received on June 9, eral Counsel of the Department of Transpor- ment: 1998; to the Committee on Governmental Af- tation, transmitting, pursuant to law, the re- fairs. port of a rule entitled ‘‘Modification of Class S. Con. Res. 102. Concurrent resolution rec- EC–5341. A communication from the Gen- ognizing Disabled American Veterans. E Airspace; Marion, OH’’ (Docket 98–AGL–20) eral Counsel of the Department of Transpor- received on June 9, 1998; to the Committee f tation, transmitting, pursuant to law, the re- on Commerce, Science, and Transportation. port of a rule regarding the removal of obso- MEASURE READ THE FIRST TIME EC–5353. A communication from the Gen- lete regulations on the transfer of marine eral Counsel of the Department of Transpor- The following bill was read the first equipment; to the Committee on Commerce, tation, transmitting, pursuant to law, the re- time: Science, and Transportation. port of a rule entitled ‘‘Establishment of EC–5342. A communication from the Gen- Class E Airspace; Minot, ND’’ (Docket 98– H.R. 3798. An act to restore provisions eral Counsel of the Department of Transpor- agreed to by the conferees to H.R. 2400, enti- AGL–21) received on June 9, 1998; to the Com- tation, transmitting, pursuant to law, the re- mittee on Commerce, Science, and Transpor- tled the ‘‘Transportation Equity Act for the port of a rule entitled ‘‘Safety Zone; San 21st Century,’’ but not included in the con- tation. Pedro Bay, CA’’ (RIN 2115–AA97) received on EC–5354. A communication from the Gen- ference report to H.R. 2400, and for other pur- June 9, 1998; to the Committee on Commerce, eral Counsel of the Department of Transpor- poses. Science, and Transportation. tation, transmitting, pursuant to law, the re- f EC–5343. A communication from the Gen- port of a rule entitled ‘‘Amendment to Class eral Counsel of the Department of Transpor- ENROLLED BILLS PRESENTED D and Class E Airspace; St. Joseph, MO; Ex- tation, transmitting, pursuant to law, the re- tension of Comment Period and Correction’’ The Secretary of the Senate reported port of a rule entitled ‘‘Modification of Class (Docket 98–ACE–6) received on June 9, 1998; that on June 11, 1998, he had presented E Airspace; Madison, SD’’ (Docket 98–AGL– to the Committee on Commerce, Science, to the President of the United States, 17) received on June 9, 1998; to the Commit- and Transportation. the following enrolled bills: tee on Commerce, Science, and Transpor- EC–5355. A communication from the Gen- tation. eral Counsel of the Department of Transpor- S. 423. An act to extend the legislative au- EC–5344. A communication from the Gen- tation, transmitting, pursuant to law, the re- thority for the Board of Regents of Gunston eral Counsel of the Department of Transpor- port of a rule entitled ‘‘Realignment of Jet Hall to establish a memorial to honor George tation, transmitting, pursuant to law, the re- Route J–66; TN’’ (Docket 97–ASO–28) received Mason. port of a rule entitled ‘‘Establishment of on June 9, 1998; to the Committee on Com- S. 1150. An act to ensure that federally Class E Airspace; Rush City, MN’’ (Docket merce, Science, and Transportation. funded agricultural research, extension, and 98–AGL–18) received on June 9, 1998; to the EC–5356. A communication from the Gen- education address high-priority concerns Committee on Commerce, Science, and eral Counsel of the Department of Transpor- with national or multistate significance, to Transportation. tation, transmitting, pursuant to law, the re- reform, extend, and eliminate certain agri- EC–5345. A communication from the Gen- port of a rule entitled ‘‘Modification of Class cultural research programs, and for other eral Counsel of the Department of Transpor- D Airspace; Minot AFB, ND; and Class E Air- purposes. tation, transmitting, pursuant to law, the re- space; Minot, ND’’ (Docket 97–AGL–61) re- f port of a rule entitled ‘‘Establishment of ceived on June 9, 1998; to the Committee on Class E Airspace; Fergus Falls, MN’’ (Docket Commerce, Science, and Transportation. EXECUTIVE AND OTHER 98–AGL–6) received on June 9, 1998; to the EC–5357. A communication from the Gen- COMMUNICATIONS Committee on Commerce, Science, and eral Counsel of the Department of Transpor- The following communications were Transportation. tation, transmitting, pursuant to law, the re- EC–5346. A communication from the Gen- port of a rule regarding airworthiness direc- laid before the Senate, together with eral Counsel of the Department of Transpor- tives on certain Eurocopter France heli- accompanying papers, reports, and doc- tation, transmitting, pursuant to law, the re- copter models (Docket 96–SW–22–AD) re- uments, which were referred as indi- port of a rule entitled ‘‘Amendment of Class ceived on June 9, 1998; to the Committee on cated: E Airspace; Colorado Springs, CO’’ (Docket Commerce, Science, and Transportation. S6180 CONGRESSIONAL RECORD — SENATE June 11, 1998 EC–5358. A communication from the Gen- ment of Commerce, transmitting, pursuant ment Staff, Food and Drug Administration, eral Counsel of the Department of Transpor- to law, the report of a rule entitled ‘‘Atlan- Department of Health and Human Services, tation, transmitting, pursuant to law, the re- tic Tuna Fisheries; Atlantic Bluefin Tuna transmitting, pursuant to law, the report of port of a rule regarding airworthiness direc- General Category’’ received on June 9, 1998; a rule entitled ‘‘Indirect Food Additives: Ad- tives on certain Stemme GmbH and Co. Sail- to the Committee on Commerce, Science, juvants, Production Aids, and Sanitizers’’ planes (Docket 97–CE–129–AD) received on and Transportation. (Docket 87F–0162) received on June 4, 1998; to June 9, 1998; to the Committee on Commerce, EC–5369. A communication from the Acting the Committee on Labor and Human Re- Science, and Transportation. Director of the Office of Sustainable Fish- sources. EC–5359. A communication from the Gen- eries, National Fisheries Service, Depart- EC–5380. A communication from the Direc- eral Counsel of the Department of Transpor- ment of Commerce, transmitting, pursuant tor of the Regulations Policy and Manage- tation, transmitting, pursuant to law, the re- to law, the report of a rule regarding di- ment Staff, Food and Drug Administration, port of a rule regarding airworthiness direc- rected fishing for pollock in Statistical Area Department of Health and Human Services, tives on certain Pilatus Aircraft Ltd. air- 610 in the Gulf of Alaska (Docket 971208297– transmitting, pursuant to law, the report of planes (Docket 97–CE–09–AD) received on 8054–02) received on June 9, 1998; to the Com- a rule regarding a secondary direct food ad- June 9, 1998; to the Committee on Commerce, mittee on Commerce, Science, and Transpor- ditive derived from rapeseed oil (Docket 97F– Science, and Transportation. tation. 0283) received on June 3, 1998; to the Commit- EC–5360. A communication from the Gen- EC–5370. A communication from the Acting tee on Labor and Human Resources. eral Counsel of the Department of Transpor- Deputy Director of the National Institute of EC–5381. A communication from the Sec- tation, transmitting, pursuant to law, the re- Standards and Technology, Department of retary of Health and Human Services, trans- port of a rule regarding airworthiness direc- Commerce, transmitting, pursuant to law, mitting, pursuant to law, the report of a rule tives on certain SOCATA Groupe the report of a rule entitled ‘‘Grant Funds- entitled ‘‘Medicare Program; Incentive Pro- Aerospatiale airplanes (Docket 97–CE–76–AD) Materials Science and Engineering: Labora- grams-Fraud and Abuse’’ (RIN0938–AH86) re- received on June 9, 1998; to the Committee tory—Availability of Funds’’ (RIN0693–ZA15) ceived on June 9, 1998; to the Committee on on Commerce, Science, and Transportation. received on June 9, 1998; to the Committee Finance. EC–5361. A communication from the Gen- on Commerce, Science, and Transportation. EC–5382. A communication from the United eral Counsel of the Department of Transpor- EC–5371. A communication from the Assist- States Trade Representative, Executive Of- tation, transmitting, pursuant to law, the re- ant Administrator of the National Oceanic fice of the President, transmitting, pursuant port of a rule regarding airworthiness direc- and Atmospheric Administration, Depart- to law, a report on foreign unfair trade prac- tives on certain Alexander Schleicher ment of Commerce, transmitting, pursuant tices for the period June 1996 through Janu- Segelfugzeugbau sailplanes (Docket 97–CE– to law, the report of a rule regarding non- ary 1998; to the Committee on Finance. 102–AD) received on June 9, 1998; to the Com- indigenous species research and ballast EC–5383. A communication from the Assist- mittee on Commerce, Science, and Transpor- water management (RIN0648–ZA40) received ant Secretary for Legislative Affairs, De- tation. on June 3, 1998; to the Committee on Com- partment of State, transmitting notice of EC–5362. A communication from the Gen- merce, Science, and Transportation. the continuation of the waiver applicable to EC–5372. A communication from the Acting eral Counsel of the Department of Transpor- the Republic of Belarus; to the Committee Director of the Office of Sustainable Fish- tation, transmitting, pursuant to law, the re- on Finance. eries, National Marine Fisheries Service, De- port of a rule regarding airworthiness direc- EC–5384. A communication from the Chief partment of Commerce, transmitting, pursu- tives on certain Glaser-Dirks Flugzeubau of the Regulations Unit, Internal Revenue ant to law, the report of a rule regarding Pa- GmbH gliders (Docket 98–CE–09–AD) received Service, Department of the Treasury, trans- cific halibut and red king crab bycatch rate on June 9, 1998; to the Committee on Com- mitting, pursuant to law, the report of a rule standards (Docket 961107312–7021–02) received merce, Science, and Transportation. regarding rates for interest on tax overpay- on June 9, 1998; to the Committee on Com- EC–5363. A communication from the Gen- ments and interest on tax underpayments merce, Science, and Transportation. eral Counsel of the Department of Transpor- EC–5373. A communication from the Assist- (Rev. Rul. 98–32) received on June 9, 1998; to tation, transmitting, pursuant to law, the re- ant Secretary for Indian Affairs, Department the Committee on Finance. EC–5385. A communication from the Chief port of a rule regarding airworthiness direc- of the Interior, transmitting, pursuant to of the Regulations Unit, Internal Revenue tives on certain British Aerospace airplanes law, a report on the Little River Band of Ot- (Docket 98–CE–15–AD) received on June 9, tawa Indians award under Indian Claims Service, Department of the Treasury, trans- 1998; to the Committee on Commerce, Commission Docket 18–E, 58 and 364; to the mitting, pursuant to law, the report of a rule Science, and Transportation. Committee on Indian Affairs. entitled ‘‘Permitted Elimination of Pre- EC–5364. A communication from the Acting EC–5374. A communication from the Acting retirement Optional Forms of Benefit’’ re- Director of the Office of Sustainable Fish- Assistant Attorney General (Legislative Af- ceived on June 4, 1998; to the Committee on eries, National Fisheries Service, Depart- fairs), Department of Justice, transmitting, Finance. ment of Commerce, transmitting, pursuant pursuant to law, the annual report on the EC–5386. A communication from the Chief to law, the report of a rule regarding ground- Police Corps for calendar year 1997; to the of the Regulations Branch of the Customs fish fisheries off Alaska (Docket 971208297– Committee on the Judiciary. Service, Department of the Treasury, trans- 8054–02) received on June 9, 1998; to the Com- EC–5375. A communication from the Com- mitting, pursuant to law, the report of a rule mittee on Commerce, Science, and Transpor- missioner of the Immigration and Natu- entitled ‘‘Recordkeeping Requirements’’ tation. ralization Service, Department of Justice, (RIN1515–AB77) received on June 9, 1998; to EC–5365. A communication from the Acting transmitting, pursuant to law, the report of the Committee on Finance. Director of the Office of Sustainable Fish- a rule regarding the filing and processing of EC–5387. A communication from the Presi- eries, National Fisheries Service, Depart- permanent resident status applications by dent of the United States, transmitting, pur- ment of Commerce, transmitting, pursuant refugees and asylees (RIN1115–AD73) received suant to law, the report of a Presidential De- to law, the report of a rule entitled ‘‘South on June 9, 1998; to the Committee on the Ju- termination regarding sanctions against Atlantic Swordfish Fishery; Fishery Reopen- diciary. Pakistan for detonation of a nuclear explo- ing’’ received on June 9, 1998; to the Commit- EC–5376. A communication from the Acting sive device; to the Committee on Foreign Re- tee on Commerce, Science, and Transpor- Assistant General Counsel for Regulations, lations. tation. Department of Education, transmitting, pur- EC–5388. A communication from the Assist- EC–5366. A communication from the Acting suant to law, the report of a rule regarding ant Secretary for Legislative Affairs, De- Director of the Office of Sustainable Fish- final funding priorities for Rehabilitation partment of State, transmitting, pursuant to eries, National Fisheries Service, Depart- Research and Training Centers and Rehabili- law, the report of a proposed license for the ment of Commerce, transmitting, pursuant tation Engineering Research Centers re- export of major defense services to Turkey to law, the report of a rule entitled ‘‘Atlan- ceived on June 9, 1998; to the Committee on (DTC–54–98); to the Committee on Foreign tic Highly Migratory Species Fisheries; Im- Labor and Human Resources. Relations. port Restrictions’’ (RIN0648–AJ93) received EC–5377. A communication from the Assist- EC–5389. A communication from the Assist- on June 9, 1998; to the Committee on Com- ant Secretary for Civil Rights, Department ant Secretary for Legislative Affairs, De- merce, Science, and Transportation. of Education, transmitting, pursuant to law, partment of State, transmitting the report EC–5367. A communication from the Acting the annual report on civil rights enforce- of a Presidential Determination regarding Director of the Office of Sustainable Fish- ment for fiscal year 1997; to the Committee the waiver and certification of statutory pro- eries, National Fisheries Service, Depart- on Labor and Human Resources. visions regarding the Palestine Liberation ment of Commerce, transmitting, pursuant EC–5378. A communication from the Sec- Organization; to the Committee on Foreign to law, the report of a rule entitled ‘‘Atlan- retary of Health and Human Services, trans- Relations. tic Swordfish Fishery; Annual Quotas’’ mitting, pursuant to law, a report on the es- EC–5390. A communication from the Assist- (RIN0648–AJ63) received on June 9, 1998; to timated cost of the premarket notification ant Secretary for Legislative Affairs, De- the Committee on Commerce, Science, and program for food contact substances for fis- partment of State, transmitting, the report Transportation. cal year 1999; to the Committee on Labor and of a Presidential Determination regarding EC–5368. A communication from the Acting Human Resources. the use of funds from the Emergency Refugee Director of the Office of Sustainable Fish- EC–5379. A communication from the Direc- and Migration Assistance Fund; to the Com- eries, National Fisheries Service, Depart- tor of the Regulations Policy and Manage- mittee on Foreign Relations. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6181 EC–5391. A communication from the Sec- By Mr. ROBERTS (for himself, Mr. should award a Presidential Unit Citation to retary of Defense, transmitting, notifica- SMITH of Oregon, Mrs. MURRAY, Mr. the final crew of the U.S.S. INDIANAPOLIS, tions of military retirements; to the Com- BURNS, Mr. CRAIG, Mr. BAUCUS, Mr. which was sunk on July 30, 1945; to the Com- mittee on Armed Services. LUGAR, Mr. KERREY, Mr. GORTON, and mittee on Armed Services. EC–5392. A communication from the Sec- Mr. KEMPTHORNE): f retary of Defense, transmitting, pursuant to S. 2158. A bill to amend the Arms Export law, the report of a certification relative to Control Act to provide that certain sanc- SUBMISSION OF CONCURRENT AND the Department of Defense reduction of ac- tions provisions relating to prohibitions on SENATE RESOLUTIONS quisition positions; to the Committee on credit, credit guarantees, or other financial Armed Services. assistance not apply with respect to pro- The following concurrent resolutions EC–5393. A communication from the Under grams of the Department of Agriculture for and Senate resolutions were read, and Secretary of Defense for Acquisition and the purchase or other provision of food or referred (or acted upon), as indicated: Technology, transmitting, pursuant to law, a other agricultural commodities; to the Com- mittee on Foreign Relations. By Mr. LOTT (for himself and Mr. report regarding allocation of core logistics DASCHLE): activities among Department of defense fa- By Mr. COCHRAN: cilities; to the Committee on Armed Serv- S. 2159. An original bill making appropria- S. Res. 247. A resolution to authorize testi- ices. tions for Agriculture, Rural Development, mony, document production, and representa- EC–5394. A communication from the Sec- Food and Drug Administration, and Related tion of Member and employees of the Senate retary of the Navy, transmitting, pursuant Agencies programs for the fiscal year ending in United States v. Jack L. Williams, et al; to law, notification of an exception to the September 30, 1999, and for other purposes; considered and agreed to. from the Committee on Appropriations; use of competitive procurement procedures f placed on the calendar. for the acquisition of (Stage II) retrofit kits; By Mr. BURNS: STATEMENTS ON INTRODUCED to the Committee on Armed Services. S. 2160. An original bill making appropria- EC–5395. A communication from the Chief BILLS AND JOINT RESOLUTIONS tions for military construction, family hous- of the Programs and Legislation Division, ing, and base realignment and closure for the By Mr. CLELAND (for himself, Department of the Air Force, transmitting, Department of Defense for the fiscal year Mr. KERRY, Mr. JEFFORDS, and the report of a cost comparison to reduce the ending Sepetember 30, 1999, and for other cost of operating base supply functions at Mr. LIEBERMAN): purposes; from the Committee on Appropria- S. 2157. A bill to amend the Small Malmstrom Air Force Base, Montana; to the tions; placed on the calendar. Committee on Armed Services. By Mr. THOMPSON (for himself and Business Act to increase the authorized EC–5396. A communication from the Assist- Mr. BREAUX): funding level for women’s business cen- ant Secretary for Legislative Affairs, De- S. 2161. A bill to provide Government-wide ters; to the Committee on Small Busi- partment of State, transmitting, pursuant to accounting of regulatory costs and benefits, ness. law, the annual report of the Panama Canal and for other purposes; to the Committee on SMALL BUSINESS ADMINISTRATION WOMEN’S Treaty for fiscal year 1997; to the Committee Governmental Affairs. BUSINESS CENTER AUTHORIZATION ACT on Armed Services. By Mr. MACK (for himself and Mr. f GRAMS): Mr. KERRY. Mr. President, I am de- S. 2162. A bill to amend the Internal Reve- lighted to join the Senator from Geor- REPORTS OF COMMITTEES nue Code of 1986 to more accurately codify gia, Senator CLELAND, in introducing The following reports of committees the depreciable life of printed wiring board legislation with him to expand the au- were submitted: and printed wiring assembly equipment; to thorized level of the Small Business the Committee on Finance. By Mr. STEVENS, from the Committee on By Mr. HATCH (for himself, Mr. Administration’s Women’s Business Appropriations: Special Report entitled ASHCROFT, Mr. ABRAHAM, Mr. THUR- Centers. I appreciate the leadership of ‘‘Further Revised Allocation to Subcommit- MOND, Mr. SESSIONS, and Mr. KYL): the Senator from Georgia on this issue. tees of Budget Totals for Fiscal Year 1999’’ S. 2163. A bill to modify the procedures of We must provide and over the last (Rept. 105–211). the Federal courts in certain matters, to re- few years have provided strong support By Mr. COCHRAN, from the Committee on form prisoner litigation, and for other pur- to help women business owners meet Appropriations, without amendment: poses; to the Committee on the Judiciary. their greatest potential. I am happy to S. 2159: An original bill making appropria- By Mrs. HUTCHISON: tions for Agriculture, Rural Development, S. 2164. A bill to amend title 49, United say this bill does just that. The addi- Food and Drug Administration, and Related States Code, to promote rail competition, tional funding that would be author- Agencies programs for the fiscal year ending and for other purposes; to the Committee on ized in the bill will ensure that the September 30, 1998, and for other purposes Commerce, Science, and Transportation. SBA is going to achieve the goal of es- (Rept. No. 105–212). By Mr. GRASSLEY: tablishing the Women’s Business Cen- By Mr. BURNS, from the Committee on S. 2165. A bill to amend title 31 of the ter in every single State by the year Appropriations, without amendment: United States Code to improve methods for S. 2160: An original bill making appropria- preventing financial crimes, and for other 1999. It will also be used to expand the tions for military construction, family hous- purposes; to the Committee on Banking, existing very successful Women’s Busi- ing, and base realignment and closure for the Housing, and Urban Affairs. ness Centers in the currently under- Department of Defense for the fiscal year By Mr. HARKIN (for himself, Mr. served areas of their States. ending September 30, 1999, and for other pur- LEAHY, and Mr. JOHNSON): Just 10 years ago Congress estab- poses (Rept. No. 105–213). S. 2166. A bill to amend the National lished a demonstration program to help f School Lunch Act and the Child Nutrition Act of 1966 to provide children with increased women-owned businesses gain access to INTRODUCTION OF BILLS AND access to food and nutrition assistance, to capital and assistance, technical assist- JOINT RESOLUTIONS simplify program operations and improve ance, in business development. This program management, to extend certain au- program has proven to be a really re- The following bills and joint resolu- thorities contained in such Acts through fis- markable success. It has served nearly tions were introduced, read the first cal year 2002, and for other purposes; to the 50,000 American women, business own- Committee on Agriculture, Nutrition, and and second time by unanimous con- ers, through 54 sites in 28 States and sent, and referred as indicated: Forestry. By Ms. COLLINS (for herself and Mr. the District of Columbia. By Mr. SMITH of Oregon: GRASSLEY): Women-owned businesses have made S. 2156. A bill to amend the Arms Export S. 2167. A bill to amend the Inspector Gen- extraordinary gains over the past dec- Control Act to exempt any credit, credit eral Act of 1978 (5 U.S.C. App.) to increase ade, and everyone in America is shar- guarantee or other financial assistance pro- the efficiency and accountability of Offices vided by the Department of Agriculture for ing the economic advantage that has of Inspector General within Federal depart- resulted from their endeavors. Current the purchase or other provision of food or ments, and for other purposes; to the Com- other agricultural commodities from sanc- mittee on Governmental Affairs. calculations by the Small Business Ad- tions provided for under the Act; to the Com- By Mr. MURKOWSKI: ministration indicate that women now mittee on Foreign Relations. S.J. Res. 52. A joint resolution proposing own one-third of all U.S. firms—more By Mr. CLELAND (for himself, Mr. an amendment to the Constitution of the than 8 million businesses. Women- KERRY, Mr. JEFFORDS, and Mr. United States relative to limiting the terms owned businesses employ one out of LIEBERMAN): of Senators and Representatives; to the Com- every five U.S. workers, a total of 18.5 S. 2157. A bill to amend the Small Business mittee on the Judiciary. Act to increase the authorized funding level By Mr. INOUYE: million employees, and more people for women’s business centers; to the Com- S.J. Res. 53. A joint resolution to express than the Fortune 500 companies. Each mittee on Small Business. the sense of the Congress that the President year, women-owned businesses now S6182 CONGRESSIONAL RECORD — SENATE June 11, 1998 contribute more than $2.38 trillion into lic assistance to running their own cated in rural areas—who want to avail the national economy. small business. themselves of the women’s business In Massachusetts, where 147,000 These are just two of a myriad of sto- center technical expertise. women-owned businesses account for ries, wonderful stories, of success as a The legislation that Senator over one-third of all our companies, the result of our efforts at the Federal CLELAND and I introduce today is the Center for Women and Business Enter- level to assist women-owned busi- beginning of a new advancement for prise has worked to empower women in nesses. These success stories are, how- women-owned businesses, and I am becoming economically self-sufficient ever, juxtaposed to the reality that far very proud to be a part of it. I hope through entrepreneurship. The center too many women still face unnecessary that all of our colleagues will join in provides in-depth courses, workshops, obstacles to developing their own busi- this important effort. I would like to one-on-one counseling, and access to fi- nesses, ranging from the lack of access take the opportunity to thank Senator nancing for women. to capital to a lack of access to govern- CLELAND and his staff, particularly Unfortunately, notwithstanding this ment contracts, to a lack of access to John Johnson, for the work they have extraordinary record of women-owned business education or even to training done in the preparation of this legisla- business, credit has always been some- opportunities, not to mention some of tion. thing that has been more difficult for the fundamental resistance that has, Mr. CLELAND. Mr. President, I women because of credit standards, and unfortunately, existed with respect to thank the Senator from Massachusetts, frankly some stereotyping that histori- women’s efforts to try to engage in en- Senator KERRY, for his work on behalf cally has taken place. trepreneurial activities. of small businesses. We are both mem- Since its inception in 1995, my We need to expand on the policies bers of the Small Business Committee State’s Women’s Business Center has and programs that allow women entre- here in the Senate. served more than 1,000 women business preneurs to grow and to thrive. In turn, Mr. President, I speak this morning owners, 40 percent of whom are minori- it is clear their successes will benefit to introduce legislation with my col- ties. One hundred cities and towns in our country and all of our commu- league, the Senator from Massachu- eastern Massachusetts are benefiting nities. We know that women entre- setts, Senator KERRY, and fellow co- from the programs and the activities preneurs are now breaking records. sponsors, including Senators DASCHLE, that are available at the center. Women-owned business have a startup LAUTENBERG, MIKULSKI, ABRAHAM, I will share a couple of real stories of rate twice that of male-owned counter- D’AMATO, BREAUX, DODD, BINGAMAN, how this has worked and what it has parts. Between 1987 and 1992, the num- KOHL, LANDRIEU, TORRICELLI, LEAHY, done. Renata Matsson came to the Cen- ber of women-owned businesses in- GRASSLEY, SNOWE, HARKIN, BUMPERS, ter for Women and Enterprise in Octo- creased by 43 percent while business and FEINSTEIN. That is an impressive ber 1995 after she had developed a medi- overall grew only 26 percent. bipartisan list of Senators. cal device to assist people suffering Particularly notable, women-owned This legislation, simply stated, rec- from chronic eye problems. But Renata companies with 100 or more workers in- ognizes the outstanding contributions didn’t know how to transform her in- creased employment by 158 percent, that women’s business centers have vention to a product in a small busi- more than double the rate for all U.S. made to women entrepreneurs across ness. After completing an 11-week class firms of similar size. These accomplish- the Nation. In light of this outstanding which taught her ‘‘the language of ments illustrate the importance of achievement in the President’s budget business,’’ she developed a detailed women-owned businesses to our econ- request, I am proud to offer this meas- business plan and applied for a grant omy, and they underscore why we in ure expressing the findings of Congress from the Small Business Administra- Congress should support their growth that funding for these centers, these tion’s Small Business Innovation Re- and development. women’s business centers, should be in- search Program through the National Last year, I was proud to be an origi- creased. I note that the centers are the Institutes of Health. She was recently nal cosponsor of the Women’s Business only organization, nationally, that awarded a grant of $100,000. Today she Centers Act of 1997, which doubled the focus exclusively on entrepreneurial is using that grant to commercialize authorization of funding for women training for women. Increased funding her technology and start her own small business center programs to $8 million would allow for new centers and sub- business. for each of the next 3 years. I was ex- centers to be established and for con- Another example: 16 years ago, tremely pleased that the major provi- tinued funding for existing centers, in- Nancy Engel was a young mother on sion of that bill, as well as a mandate cluding the on-line women’s business welfare dreaming of giving her daugh- for the SBA to conduct studies on how center. Increased funding would ter the things that she never had—a women businesses fare in the contract- achieve the goal of expanding centers home, financial security, and a college ing and finance areas, was included in to all 50 States. Our legislation would education. Nancy took $30 from her the Small Business Reauthorization increase funding for women’s business last welfare check and bought spices, Act of 1997 and was enacted into law centers under the SBA in steps, from which she then repackaged and sold at with President Clinton’s signature. the current level of $8 million to $9 a flea market. She earned $200 from The legislation that I join Senator million for fiscal year 1999, $10.5 mil- that investment of her $30 from her CLELAND in introducing today takes lion for fiscal year 2000, and $12 million check. She then used those proceeds to the next step in developing the wom- for fiscal year 2001. develop a small business called the en’s business center program by in- Mr. President, I would like to take a Sunny Window. In 1996, she enrolled in creasing the authorization to $9 mil- moment to talk about four focal points the Center for Women and Enterprise’s lion in fiscal year 1999, $10.5 million in of women’s business centers. The first business planning course. Since she the year 2000, and $12 million in 2001. I and most important focus is the cus- completed the course, Sunny Window underscore that that is a remarkably tomer. These centers have responded to has grown and now generates $250,000 in small amount of money that we are women’s needs by offering training, annual revenues selling spices, dried seeking to do a large job, a job which and during accessible hours at nights flower arrangements and soaps obviously is returning extraordinary and on weekends. In addition to regu- throughout the world. It now employs results to the Nation. lar training courses, special instruc- seven women with what Nancy calls This increased funding will ensure tions on starting at-home child care ‘‘part-time mothers’ hours.’’ Nancy that the SBA achieves the goal of es- businesses have also been offered. As was recently named the U.S. Small tablishing at least one women’s busi- the SBA Administrator Aida Alvarez Business Administration’s first Wel- ness center in each State by the end of points out, the number of clients fare-to-Work Entrepreneur of the Year the year in 1999 and will strengthen and served in the second year of the pro- for Massachusetts. Soon she will be expand the existing centers. I also con- gram increased by 40 percent. Approxi- volunteering for the Center for Women tinue to support the development of mately 44 percent of clients served and Enterprise, assisting other women the women’s on-line center, which is a were actually socially disadvantaged. entrepreneurs who are trying to make very useful tool for women More than 33 percent of the clients the very difficult transition from pub- businessowners—especially those lo- were economically disadvantaged, June 11, 1998 CONGRESSIONAL RECORD — SENATE S6183 nearly 40 percent were minorities, and legislation, which I think will serve the The Office of Women’s Business Own- 18 percent were actually on public as- needs of so many. ership recently released a report to sistance at the time. Mr. ABRAHAM. Mr. President, I rise Congress on the success of Women’s Then there is the community focus. today as an original cosponsor of legis- Business Centers. This report officially Women’s business centers are a net- lation increasing the authorization for confirms what we already informally work of more than 60 community-based the Small Business Administration’s know: Women are interested in owning women’s business centers operating in Women’s Business Center program their own businesses, and women ap- 36 States, the District of Columbia, and from $9 million in 1999 to $12 million in preciate the targeted help the Centers Puerto Rico. Each center offers long- 2001. These centers provide manage- offer that relates directly to the unique term training, networking, and men- ment, marketing, and financial advice opportunities and challenges that toring to potential and existing entre- to women-owned small businesses. women face in creating a business. preneurs, most of whom could not or Mr. President, the Small Business While existing Small Business Admin- would not start businesses without sub- Administration’s Women’s Business istration offices and Small Business stantial help, and each center tailors Center program finances a number of Development Centers help women en- its programs to the needs of the indi- very important initiatives at the state trepreneurs, this report found that vidual community it serves. and local levels; initiatives that have more than three-fourths of the women Next is the economic focus. In terms proven crucial to women struggling to who have turned to a Women’s Busi- of job growth, significantly high num- enter the job world and to start their ness Center appreciate its special bers of full- and part-time jobs were own businesses. These initiatives have focus. SBA offices and SBDCs do not created at average hourly wages at changed the lives of a significant num- have the resources available to offer least double the minimum wage. In the ber of women in Michigan and through- the same kind of help. area of loan growth, the number of out the United States. Our legislation will supply resources For example, Mr. President, Ann Ar- small loans received by clients has needed to establish a Women’s Business bor’s Women’s Initiative for Self-Em- more than doubled since the first year Center in each of the fifty states, in- ployment or WISE program was started of the program. In terms of small busi- cluding in my home state of Vermont. in 1987 as a means by which to provide ness growth, 78 percent of all center Passage of this bill would give women low-income women with the tools and clients were startup businessowners or in Vermont and in other states direct resources they need to begin and ex- aspiring entrepreneurs. The centers access to information on financing, pand businesses. The WISE program taught them business basics and pro- marketing and managing their own provides a comprehensive package of vided practical support and realistic business ventures. Under the provisions business training, personal develop- encouragement. of this bill, Vermonters would have ac- The last focus is that of technology. ment workshops, credit counseling, start-up and expansion financing, busi- cess to the wide range of resources that The on-line women’s business center, already are available to citizens in 36 at www.onlinewbc.org, is an inter- ness counseling, and mentoring. In ad- dition to helping create and expand other states. active state-of-the-art web site that of- The bill will also extend additional businesses, WISE fights poverty, in- fers virtually everything an entre- resources for the online Women’s Busi- preneur needs to start and build a suc- creases incomes, stabilizes families, de- velops skills and sparks community re- ness Center. This resource, located at cessful business, including on-line www.onlinewbc.org, provides assist- training, mentoring, individual coun- newal. In addition, Mr. President, Grand ance to women who are unable to trav- seling, topic forums and news groups, Rapids’ Opportunities for Women or el long distances to Centers. With this market research, a comprehensive GROW provides career counseling and online resource, women have access to State-by-State resource and informa- training for women in western Michi- much of the same information that is tion guide, and information on all of gan. This nonprofit group serves about available at the Centers, and they can the SBA’s programs and services, plus 250 women per year. GROW helps ask questions of specialists, all with links to countless other resources. This women get jobs by providing them with the click of a mouse. Our bill would en- site was developed by the North Texas basic training and helping them get able the Center to expand its online Women’s Business Development Center funds for more specialized training. In services to women in business. in cooperation with more than 60 wom- addition, they help women obtain ap- Even without the resources of a en’s business centers and several cor- propriate clothing so that they can Women’s Business Center, Vermont is a porate sponsors. This summer, infor- start work in a professional manner. leader in women-owned businesses. The mation will be available in nine dif- I salute the good people at WISE and number of women entrepreneurs in ferent languages. GROW for their hard work helping the Vermont has almost doubled over the Mr. President, I want to conclude my women of Michigan. They provide the last ten years. Women now own more statement by thanking the Senator kind of services we need to revitalize than thirty-eight percent of all busi- from Massachusetts, Senator KERRY. I troubled areas and empower women to nesses in Vermont, which is above the think this legislation offers small busi- build productive lives for themselves national average of thirty-six percent. nesses and entrepreneurs in America and their families. Women also employ thirty percent of hope, particularly women Because the Small Business Adminis- Vermont’s workers, which also exceeds businessowners and potential women tration’s Women’s Business Centers the national average. businessowners. It is the hope of a bet- program makes these kinds of efforts Women have faced unique obstacles ter life for oneself, one’s family and possible, I believe it deserves our full and challenges in starting and growing community, which actually drives en- support, and merits the increase in businesses. Some obstacles have been trepreneurs and also drives the eco- funding called for in this legislation. I lowered in recent years, and we can all nomic engine in this country, which is urge my colleagues to support this im- hope that this progress will continue. so vital to our well-being as a Nation. portant bill. One step we can take to promote con- Women’s business centers are a dis- ∑ Mr. LEAHY. Mr. President, I am tinued progress is by bringing the re- tributor of that hope. We in Congress pleased today to join with my col- sources of Women’s Business Centers to need to recognize that this program leagues, Senators CLELAND and KERRY, more women entrepreneurs. We must works. It makes a positive difference in in introducing legislation that will encourage more Vermont women to tap the lives of so many women and the bring the resources of SBA’s Women’s into this incredible growth. An SBA countless citizens they employ. Business Center program much closer Women’s Business Center in Vermont I hope all of my colleagues will join to those seeking this help as they work will do just that by providing women me in cosponsoring our bipartisan leg- to start their own businesses. This bill with the framework and support nec- islation. I look forward to its future does more than recognize the contribu- essary to thrive and excel as business and timely consideration in the Senate tions that women make as business owners.∑ Committee on Small Business. I thank owners. This bill tangibly supports and my colleagues for the opportunity to encourages more women to become en- By Mr. THOMPSON (for himself be here this morning to present this trepreneurs. and Mr. BREAUX): S6184 CONGRESSIONAL RECORD — SENATE June 11, 1998 S. 2161. A bill to provide Government- year; and the benefits of regulation There being no objection, the bill was wide accounting of regulatory costs often are diffuse. But there is substan- ordered to be printed in the RECORD, as and benefits, and for other purposes; to tial evidence that the current regu- follows: the Committee on Governmental Af- latory system often misses opportuni- S. 2161 fairs. ties for greater benefits and lower Be it enacted by the Senate and House of Rep- REGULATORY RIGHT-TO-KNOW ACT OF 1998 costs. As noted by the President’s chief resentatives of the United States of America in ∑ Mr. THOMPSON. Mr. President, spokesperson on regulatory policy, Congress assembled, today I am introducing the ‘‘Regu- Sally Katzen: SECTION 1. SHORT TITLE. latory Right-to-Know Act’’ of 1998. I Regrettably, the regulatory system that This Act may be cited as the ‘‘Regulatory believe that this legislation will serve has been built up over the past five decades Right-to-Know Act of 1998’’. as an important tool to promote the . . . is subject to serious criticism . . . [on SEC. 2. PURPOSES. the grounds] that there are too many regula- The purposes of this Act are to— public’s right to know about the bene- tions, that many are excessively burden- fits and burdens of regulation; to in- (1) promote the public right-to-know about some, [and] that many do not ultimately the costs and benefits of Federal regulatory crease the accountability of govern- provide the intended benefits. programs and rules; ment to the people it serves; and, ulti- Our regulatory goals are too impor- (2) improve the quality of Federal regu- mately, to improve the quality of our tant, and our resources are too pre- latory programs and rules; government. cious, to miss out on opportunities to (3) increase Government accountability; This continues the effort begun by do better. and Senator STEVENS, then the Chairman It’s time to move toward a more open (4) encourage open communication among of the Governmental Affairs Commit- and accountable regulatory system. I Federal agencies, the public, the President, and Congress regarding regulatory priorities. tee, when he passed the Stevens Regu- am pleased to be introducing this bill SEC. 3. DEFINITIONS. latory Accounting Amendment in 1996. with Senator BREAUX. It’s important In this Act: This legislation would not change any that members from both sides of the statutory or regulatory standard; it (1) AGENCY.—The term ‘‘agency’’ means aisle work together to solve these prob- any executive department, military depart- simply would provide information to lems. I appreciate that Chairman TOM ment, Government corporation, Government help the public, Congress and the Presi- BLILEY introduced a similar bill in the controlled corporation, or other establish- dent to understand the scope and per- House last fall, and I look forward to ment in the executive branch of the Govern- formance of our regulatory system. As working with him. Finally, I appre- ment (including the Executive Office of the OMB stated in its first report under the ciate the effort that a few dedicated President), or any independent regulatory Stevens Amendment, ‘‘Over time, regu- professionals put into OMB’s first regu- agency, but shall not include— lation . . . has become increasingly latory accounting report. While this re- (A) the General Accounting Office; prevalent in our society, and the im- port is certainly not perfect, it shows (B) the Federal Election Commission; (C) the governments of the District of Co- portance of our regulatory activities that regulatory accounting is doable lumbia and of the territories and possessions cannot be overstated.’’ It is my hope and can help us better understand the of the United States, and their various sub- that more information on the benefits benefits and burdens of regulation. divisions; or and costs of regulation will help us Now let’s do better. This bill will pro- (D) Government-owned contractor-oper- make smarter decisions to get more of mote some important improvements, ated facilities, including laboratories en- the good things that sensible regula- including: gaged in national defense research and pro- tion can deliver, and reduce needless Making regulatory accounting a per- duction activities. waste and redtape at the same time. manent requirement. (2) BENEFIT.—The term ‘‘benefit’’ means the reasonably identifiable significant favor- That’s plain common sense. Adding requirements for a more com- plete picture, including, to the extent able effects, quantifiable and nonquantifi- Regulations have played an impor- able, including social, health, safety, envi- tant role in improving our quality of feasible, the costs and benefits of par- ticular programs, not just an aggregate ronmental, economic, and distributional ef- life—cleaner air, quality products, fects, that are expected to result from imple- safer workplaces, and reliable eco- picture, as well as an analysis of regu- mentation of, or compliance with, a rule. nomic markets—to name a few of the lation’s impacts on the State and local (3) COST.—The term ‘‘cost’’ means the rea- good things that sensible regulation government, the private sector, and sonably identifiable significant adverse ef- can produce. Achieving these benefits the federal government. fects, quantifiable and nonquantifiable, in- Ensuring higher quality of informa- does not come without cost. In its first cluding social, health, safety, environ- tion. Requirements for OMB guidelines mental, economic, and distributional effects, regulatory accounting report, OMB es- and peer review should improve future that are expected to result from implemen- timated that the annual cost of regula- reports. tation of, or compliance with, a rule. tion of the environment, health, safety Ensuring better compliance with (4) DIRECTOR.—The term ‘‘Director’’ means and the economy is about $300 billion. basic legislative requirements which the Director of the Office of Management Other studies, which include the full the first report neglected. These defi- and Budget, acting through the Adminis- costs of paperwork and economic trans- trator of the Office of Information and Regu- ciencies include failing to recommend latory Affairs. fers, estimate that regulation costs improvements to current programs; about $700 billion annually. Those costs (5) MAJOR RULE.—The term ‘‘major rule’’ failing to assess the indirect effects of means a rule that— are passed on to American consumers regulation; failing to provide informa- (A) the agency proposing the rule or the and taxpayers through higher prices, tion on specific programs where fea- Director reasonably determines is likely to diminished wages, increased taxes, or sible; and failing to provide a full ac- have an annual effect on the economy of reduced government services. The tab counting of all mandates. This bill will $100,000,000 or more in reasonably quantifi- for the average American household is help address these problems. able costs; or thousands of dollars each year—$7,000 As OMB said in their first regulatory (B) is otherwise designated a major rule by per year by some estimates. At the accounting report, ‘‘regulations (like the Director on the ground that the rule is same time, the public wants and de- likely to adversely affect, in a material way, other instruments of government pol- the economy, a sector of the economy, in- serves better results from our regu- icy) have enormous potential for both cluding small business, productivity, com- latory system. As the costs of regula- good and harm.’’ I believe that better petition, jobs, the environment, public tion rise with public expectations of information will help us to increase the health or safety, or State, local, or tribal better results, the need is greater than benefits of regulation and decrease un- governments, or communities. ever to get a handle on how regulatory necessary waste and red tape. I think (6) PROGRAM ELEMENT.—The term ‘‘pro- programs are performing, so we can we need to work together to contribute gram element’’ means a rule or related set of find ways for our government to per- to the success of government programs rules. form better. the public values, while enhancing the (7) RULE.—The term ‘‘rule’’ has the same It’s no surprise that the seriousness meaning given such term in section 551(4) of economic security and well-being of title 5, United States Code, except that such of this need is not widely appreciated, our families and communities. term shall not include— because the costs of regulation are not Mr. President, I ask unanimous con- (A) administrative actions governed by as obvious as many other costs of gov- sent that the ‘‘Regulatory Right-to- sections 556 and 557 of title 5, United States ernment, such as the taxes we pay each Know Act’’ be printed in the RECORD. Code; June 11, 1998 CONGRESSIONAL RECORD — SENATE S6185 (B) rules issued with respect to a military the Director shall provide estimates for the SEC. 7. PEER REVIEW. or foreign affairs function of the United following sectors: (a) IN GENERAL.— States; or (i) Private sector costs. (1) SCOPE.—The Director shall provide for (C) rules related to agency organization, (ii) Federal sector administrative costs. independent and external peer review of— management, or personnel. (iii) Federal sector compliance costs. (A) the guidelines issued under section 6; SEC. 4. ACCOUNTING STATEMENT. (iv) State and local government adminis- and (a) IN GENERAL.— trative costs. (B) each accounting statement and associ- (1) ADMINISTRATION.—The President, acting (v) State and local government compliance ated report. through the Director, shall be responsible for costs. (2) USE OF COMMENTS.—The Director shall implementing and administering the require- SEC. 5. ASSOCIATED REPORT TO CONGRESS. use the peer review comments in preparing ments of this Act. (a) IN GENERAL.— the final statement and report. (b) REVIEW.—Peer review under subsection (2) ACCOUNTING STATEMENT.—Not later (1) SUBMISSION.—In each year following the (a) shall— than January 2000, and each January every 2 year in which the President submits an ac- (1) involve participants who— years thereafter, the President shall prepare counting statement under section 4, the (A) have expertise in the economic and and submit to Congress an accounting state- President, acting through the Director, technical issues germane to regulatory ac- ment that estimates the costs and cor- shall, after notice and opportunity for com- counting and economic and scientific analy- responding benefits of Federal regulatory ment, submit to Congress a report associated sis; and programs and program elements in accord- with the accounting statement (hereinafter (B) are independent of the Government; ance with this section. referred to as an ‘‘associated report’’). (2) be completed in a timely manner, con- (b) YEARS COVERED BY ACCOUNTING STATE- (2) CONTENT.—The associated report shall sistent with applicable deadlines; MENT.—Each accounting statement (other contain, in accordance with this section— (3) provide written comments to the Direc- than the initial accounting statement) sub- (A) analyses of impacts; tor containing a balanced presentation of all mitted under this Act shall cover, at a mini- (B) identification and analysis of jurisdic- considerations; and mum, the costs and corresponding benefits tional overlaps, duplications, and potential (4) not be subject to the Federal Advisory for each of the 5 fiscal years preceding Octo- inconsistencies among Federal regulatory Committee Act (5 U.S.C. App.). ber 1 of the year in which the report is sub- programs; and (c) RESPONSE.—The Director shall provide (C) recommendations for reform. mitted. Each statement shall also contain, a written response to all significant peer re- (b) ANALYSES OF IMPACTS.—The President at a minimum, a projection of the costs and view comments. Such comments and re- shall include in the associated report the fol- corresponding benefits for each of the next 10 sponses shall be made available to the pub- lowing: fiscal years, based on rules in effect or pro- lic. jected to take effect. The statement may (1) ANALYSES.—Analyses prepared by the president of the cumulative impact of Fed- SEC. 8. RECOMMENDATIONS FROM CONGRES- cover any fiscal year preceding such fiscal SIONAL BUDGET OFFICE. years for the purpose of revising previous es- eral regulatory programs covered in the ac- After each accounting statement and asso- timates. counting statement. Factors to be consid- ciated report is submitted to Congress, the (c) TIMING AND PROCEDURES.— ered in such report shall include impacts on Director of the Congressional Budget Office (1) NOTICE AND COMMENT.—The President the following: shall make recommendations to the Presi- shall provide notice and opportunity for (A) The ability of State and local govern- dent— comment, including consultation with the ments to provide essential services, includ- (1) for improving agency compliance with Comptroller General of the United States, ing police, fire protection, and education. this Act and the guidelines under section 6; for each accounting statement. (B) Small business. and (2) TIMING.—The President shall propose (C) Productivity. (2) for improving accounting statements the first accounting statement under this (D) Wages. and associated reports prepared under this section no later than 1 year after the date of (E) Economic growth. Act, including recommendations on level of enactment of this Act. Such statement shall (F) Technological innovation. detail, accuracy, and quality of analysis.∑ cover, at a minimum, each of the preceding (G) Employment and income distribution. fiscal years beginning with fiscal year 1997. (H) Consumer prices for goods and services. By Mr. MACK (for himself and (I) Such other factors considered appro- (d) CONTENTS OF ACCOUNTING STATEMENT.— Mr. GRAMS): (1) ESTIMATES OF COSTS.—An accounting priate by the President. S. 2162. A bill to amend the Internal Reve- statement shall estimate the costs of all (2) SUMMARY.—A summary of any inde- nue Code of 1986 to more accurately codify Federal regulatory programs and program pendent analyses of impacts prepared by per- the depreciable life of printed wiring board elements, including paperwork costs, by set- sons commenting during the comment period and printed wiring assembly equipment; to ting forth, for each year covered by the on the accounting statement. the Committee on Finance. (c) RECOMMENDATIONS FOR REFORM.—The statement— PRINTED CIRCUIT INVESTMENT ACT OF 1998 President shall include in the associated re- (A) the annual expenditure of national eco- Mr. MACK. Mr. President, today Sen- nomic resources for each regulatory program port the following: ∑ and program elements; and (1) PRESIDENTIAL RECOMMENDATIONS.—A ator GRAMS and I introduce the Printed (B) such other quantitative and qualitative summary of recommendations of the Presi- Circuit Investment Act of 1998. This measures of costs as the President considers dent for reform or elimination of any Fed- bill would allow manufacturers of appropriate. eral regulatory program or program element printed wiring boards and assemblies, (2) ESTIMATES OF BENEFITS.—An accounting that does not represent sound use of national known as the electronic interconnec- statement shall estimate the corresponding economic resources or otherwise is ineffi- tion industry, to depreciate their pro- benefits of Federal regulatory programs and cient. duction equipment in 3 years rather (2) RECOMMENDATIONS FROM COMMENTERS.— program elements by setting forth, for each than the 5 year period under current year covered by the statement, such quan- A summary of any recommendations for titative and qualitative measures of benefits such reform or elimination of Federal regu- law. as the President considers appropriate. Any latory programs or program elements pre- As we approach the 21st Century, our estimates of benefits concerning reduction in pared by persons commenting during the Nation’s Tax Code should not stand in health, safety, or environmental risks shall comment period on the accounting state- the way of technological progress. be based on sound and objective scientific ment. Printed wiring boards and assemblies practices and shall present the most plau- SEC. 6. GUIDANCE FROM OFFICE OF MANAGE- are literally central to our economy, as sible level of risk practical, along with a MENT AND BUDGET. they are the nerve centers of nearly statement of the reasonable degree of sci- (a) IN GENERAL.—Not later than 180 days every electronic device from entific certainty. after the date of enactment of this Act, the camcorders and televisions to medical (3) PRESENTATION OF RESULTS.— Director shall, in consultation with the (A) COSTS AND BENEFITS CATEGORIES.—To Council of Economic Advisers, issue guide- devices, computers and defense sys- the extent feasible, the costs and benefits lines to agencies— tems. But the Tax Code places U.S. under this subsection shall be listed under (1) to standardize measures of costs and manufacturers at a disadvantage rel- the following categories: benefits in accounting statements prepared ative to their Asian competitors, be- (i) In the aggregate. pursuant to this Act, including guidance on cause of different depreciation treat- (ii) By agency, agency program, and pro- estimating the costs and corresponding bene- ment. This disadvantage is particularly gram element. fits of regulatory programs and program ele- difficult for U.S. firms to bear, as the (iii) By major rule. ments; and interconnection industry consists over- (B) QUANTIFICATION.—To the extent fea- (2) to standardize the format of the ac- sible, the Director shall quantify the net counting statements. whelmingly of small firms that cannot benefits or net costs under subparagraph (A). (b) REVIEW.—The Director shall review sub- easily absorb the costs inflicted by an (C) COST ESTIMATES.—In presenting esti- missions from agencies to assure consistency irrationally-long depreciation sched- mates of costs in the accounting statement, with the guidelines under this section. ule. S6186 CONGRESSIONAL RECORD — SENATE June 11, 1998 As technology continues to advance By Mr. HATCH (for himself, Mr. In an effort to avoid this long-con- at light speed, the exhilaration of com- ASHCROFT, Mr. ABRAHAM, Mr. THUR- templated problem, the proposed re- petition in a dynamic market is damp- MOND, Mr. SESSIONS, and Mr. KYL): form legislation we are introducing ened by the effects of a Tax Code that S. 2163. A bill to modify the proce- today will assist in ensuring that all has not kept pace with these changes. dures of the Federal courts in certain three branches of the federal govern- Obsolete interconnection manufactur- matters, to reform prisoner litigation, ment work together in a fashion con- ing equipment is kept on the books and for other purposes; to the Commit- templated by, and consistent with, the long after this equipment has gone out tee on the Judiciary. Constitution. In addition, this legisla- the door. Companies with the competi- JUDICIAL IMPROVEMENT ACT OF 1998 tion will ensure that federal judges are tive fire to enter such a rapidly-evolv- Mr. HATCH. Mr. President, I rise more respectful of the States. ing industry must constantly invest in today to introduce, along with Sen- This bill is not, as some would claim, an assault on the Federal Judiciary. new state-of-the-art equipment, replac- ators THURMOND, ABRAHAM, and Indeed, the overwhelming majority of ing obsolete equipment every 18 to 36 ASHCROFT, the Judicial Improvement months just to remain competitive. Act of 1998; legislation that will restore our Federal judges would find repug- U.S. investments in new printed wiring public confidence in our democratic nant the idea of imposing their per- board and assembly manufacturing process by strengthening the constitu- sonal views on the people in lieu of equipment have nearly tripled since tional division of powers between the Federal or State law. However, there 1991—growing from $847 million to an Federal government and the States and are currently some activist Federal estimated $2.4 billion. between Congress and the Courts. On judges improperly expanding their But this investment is taxed at an the whole, our federal judges are re- roles to quash the will of the people. artificially-high rate, because deduc- spectful of their constitutional roles, These individuals view themselves as tions for the cost of the equipment are yet a degree of overreaching by some so-called platonic guardians, and be- spread over a period that is several dictates that Congress move to more lieve they know what is in the people’s years longer than justified. The indus- clearly delineate the proper role of best interest. Judges, however, are sim- try is at the mercy of tax laws passed Federal judges in our constitutional ply not entitled to deviate from their in the 1980s, which were based on 1970s- system. Increasingly, judges forget roles as interpreters of the law to cre- era electronics technology. It is no that the Constitution has committed ate new law from the bench. If they be- wonder that the market share of U.S. to them the power to interpret law, but lieve otherwise, they are derelict in interconnection companies has been reserved to Congress the power to leg- their duties and should resign to run cut in half over this period. Our Tax islate. for public office—at least then they Code should not continue to undermine This careful balancing of legislative would be accountable for their actions. the competitiveness of American busi- and judicial functions is vital to our It is time that we pass legislation that nesses. The opportunity is before us to constitutional system. Regardless of precludes any Federal judge from blur- correct the tax laws that dictate how how much we, as individuals, may ap- ring the lines separating the legislative rapidly board manufacturers and elec- prove of the results of a certain judge’s and judicial functions. tronics assemblers can depreciate decision, we must look beyond short- It is important to note that the ef- equipment needed to fabricate and as- term political interests and remember fort to reign in judicial activism semble circuit boards. the importance of preserving our Con- should not be limited simply to oppos- The Printed Circuit Investment Act stitution. ing potential activist nominees. While of 1998 will provide modest tax relief to Attempts by certain jurists to en- the careful scrutiny of judicial nomi- the electronics interconnection indus- croach upon legislative authority deep- nees is one important step in the proc- try and the 250,000 Americans, residing ly concern me. I have taken the floor ess, a step reserved to the Senate in every state of the Union, whose jobs in this chamber on numerous occasions alone, Congress itself has an obligation rely on the success of this industry. to recite some of the more troubling to the public to ensure that judges ful- This industry should get fair and accu- examples of judicial overreaching. I fill their constitutionally assigned rate tax treatment. will not revisit them today. Suffice it roles and do not encroach upon those Mr. President, I ask unanimous con- to say that activism, and by that I powers delegated to the legislature. sent that the text of the bill be printed mean a judge who ignores the written Hence, the Congress performs an im- in the RECORD. text of the law, whether from the right portant role in bringing activist deci- There being no objection, the bill was or the left, threatens our constitu- sions to light and, where appropriate, ordered to be printed in the RECORD, as tional structure. publicly criticizing those decisions. follows: As an elected official, my votes for Some view this as an assault upon judi- S. 2162 legislation are subject to voter ap- cial independence. That is untrue. It is proval. Federal judges, however, are Be it enacted by the Senate and House of Rep- merely a means of engaging in debate resentatives of the United States of America in unelected, hence they are, as a prac- about a decision’s merits or the process Congress assembled, tical matter, unaccountable to the pub- by which the decision was reached. SECTION 1. SHORT TITLE. lic. While tenure during good behavior, Such criticism is a healthy part of our This Act may be cited as the ‘‘Printed Cir- which amounts to life tenure, is impor- democratic system. While life tenure cuit Investment Act of 1998’’. tant in that it frees judges to make un- insulates judges from the political SEC. 2. 3-YEAR DEPRECIBLE LIFE FOR PRINTED popular, but constitutionally sound, process, it should not, and must not, WIRING BOARD AND PRINTED WIR- decisions, it can become a threat to lib- isolate them from the people. ING ASSEMBLY EQUIPMENT. erty when placed in the wrong hands. In addition, the Constitution grants (a) IN GENERAL.—Subparagraph (A) of sec- Alexander Hamilton, in the 78th Fed- Congress the authority, with a few no- tion 168(e)(3) of the Internal Revenue Code of 1986 (relating to classification of property) is eralist, warned of the problem when table limitations, to set federal courts’ amended by striking ‘‘and’’ at the end of judges ‘‘substitute their own pleasures jurisdiction. This is an important tool clause (ii), by striking the period at the end to the constitutional intentions of the that, while seldom used, sets forth the of clause (iii) and inserting ‘‘, and’’, and by legislature.’’ [Federalist No. 78, A. circumstances in which the judicial adding at the end the following new clause: Hamilton]. Hamilton declared that power may be exercised. A good exam- ‘‘(iv) any printed wiring board or printed ‘‘The courts must declare the sense of ple of this is the 104th Congress’ effort wiring assembly equipment.’’ the law; and if they should be disposed to reform the statutory writ of habeas (b) 3-YEAR CLASS LIFE.—Subparagraph (B) of section 168(g)(3) of such Code is amended to exercise Will instead of Judgment, corpus in an attempt to curb the seem- by inserting after the item relating to sub- the consequence would equally be the ingly endless series of petitions filed by paragraph (A)(iii) the following new item: substitution of their pleasure to that of convicted criminals bent on thwarting ‘‘(A)(iv) ...... 3’’. the legislative body.’’ [Ibid.]. And sub- the demands of justice. Legislation of (c) EFFECTIVE DATE.—The amendments stituting the will of life-tenured fed- this nature, actually called for by the made by this section shall apply to equip- eral judges for the democratically Chief Justice and praised in his recent ment placed in service after the date of the elected representatives is not what our annual report, is an important means enactment of this Act.∑ Constitution’s framers had in mind. of curbing activism. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6187 To this end, I have chosen to intro- Thelton Henderson from issuing an in- centive for the judge to rule promptly duce the Federal Judicial Improvement junction barring enforcement of Propo- on the issues at hand, and precluded Act. It is a small, albeit meaningful, sition 209, a ballot initiative which pro- her from indefinitely delaying enforce- step in the right direction. Notably, hibited affirmative action in Califor- ment of the proposition without ruling. this legislation will change the way nia. Judge Henderson’s order was sub- What this reform essentially does is en- federal courts review constitutional sequently overturned by the Ninth Cir- courage the federal judiciary to rule on challenges to State and federal laws. cuit Court of Appeals, which ruled that the merits of a case, and not use in- The existing process allows a single the law was constitutional and that junctions to keep a challenged law federal judge to hear and grant applica- Judge Henderson thwarted the will of from going into effect or being heard tions regarding the constitutionality of the people. A three judge panel would by an appeals court through the use of State and federal laws as well as state have prevented Henderson from acting delaying tactics. ballot initiatives. In other words, a sin- on his own, and perhaps would have The bill also proposes to require that gle federal judge can impede the will of ruled correctly in the first place. a notice of appeal must be filed not a majority of the voters merely by Now, I have no problem with a court more than fourteen days after the date issuing an order halting the implemen- declaring a law unconstitutional when of an order granting an interlocutory tation of a state referendum. it violates the written text of the Con- injunction and the appeals court would This proposed reform will accomplish stitution. It is, however, inappropriate lack jurisdiction over an untimely ap- the twin goals of fighting judicial ac- when a judge, like Judge Henderson, peal of such an order. The court of ap- tivism and preserving the democratic attempts to act like a super-legislator peals would apply a de novo standard of process. This bill modestly proposes to and imposes his own policy preference review before reconsidering the merits respond to the problem of judicial ac- on the citizens of a State. Such an ac- of granting relief, but not less than 100 tivism by: tion weakens respect for the federal ju- days after the issuance of the original 1. Requiring a three judge district court diciary, creates cynicism in the voting order granting interlocutory relief. If panel to hear appeals and grant interlocu- public, and costs the government mil- the interlocutory order is upheld on ap- tory or permanent injunctions based on the lions of dollars in legal fees. By requir- peal, the order would remain in force constitutionality of the state law or referen- ing a three judge panel, the proposed no longer than 60 days after the date of dum. law would eliminate the ability of one 2. Placing time limitations on remedial au- the appellate decision or until replaced thority in any civil action in which prospec- activist judge to unilaterally bar en- by a permanent injunction. tive relief or a consent judgment binds State forcement of a law or ballot initiative The bill also proposes limitations on or local officials. through an interlocutory or permanent the remedial authority of federal 3. Prohibiting a Federal court from having injunction. courts. In any civil action where pro- the authority to order State or local govern- In addition, new time limits on in- ments to increase taxes as part of a judicial spective relief or a consent judgment junctive relief would be imposed. A binds state and local officials, relief remedy. temporary restraining order would re- 4. Preventing a Federal court from prohib- would be terminated upon the motion main in force no more than 10 days, iting State or local officials from reprosecut- of any party or intervener: and an interlocutory injunction no ing a defendant. AND a) five years after the date the court more than 60 days. After the expiration 5. Preventing a Federal court from order- granted or approved the prospective re- ing the release of violent offenders under un- of an interlocutory injunction, federal lief; warranted circumstances. courts would lack the authority to This reform bill is a long overdue ef- grant any additional interlocutory re- b) two years after the date the court fort to minimize the potential for judi- lief but would still have the power to has entered an order denying termi- cial activism in the federal court sys- issue a permanent injunction. These nation of prospective relief; or tem. Americans are understandably limitations are designed to prevent the c) in the case of an order issued on or frustrated when they exercise their federal judiciary from indefinitely bar- before the date of enactment of this right to vote and the will of their elect- ring implementation of challenged act, two years after the date of enact- ed representatives is thwarted by laws by issuing endless injunctions, ment. judges who enjoy life tenure. It’s no and facilitate the appeals process by Parties could agree to terminate or wonder that millions of Americans motivating courts to speedily handle modify an injunction before relief is don’t think their vote matters when constitutional challenges. available if it otherwise would be le- they enact a referendum only to have We need only to look at the legal gally permissible. Courts would it enjoined by a single district court wrangling over Proposition 187 to see promptly rule on motions to modify or judge. By improving the way federal the need for these time constraints. terminate this relief and in the event courts analyze constitutional chal- The California initiative was over- that a motion is not ruled on within 60 lenges to laws and initiatives, Congress whelmingly approved in 1994 with al- days, the order or consent judgment will protect the rights of parties to most 60 percent of the vote and was de- binding State and local officials would challenge unconstitutional laws while signed to end all social services and automatically terminate. at the same time reduce the ability of other benefits to illegal aliens. The ref- However, prospective relief would not activist judges to abuse their power erendum was supported by voters who terminate if the federal court makes and stifle the will of the people. felt that they as taxpayers didn’t have written findings based on the record I want to take a few moments to de- the ability to provide those who break that relief remains necessary to cor- scribe how this legislation will curb immigration laws with free health, rect an ongoing violation of a federal the ability of federal judges to engage education and welfare. Opponents who right, extends no further than nec- in judicial activism. The first reform lost at the ballot box went to federal essary to correct the violation and is would require a three judge panel to court the next day and obtained an in- the least intrusive means available to hear and issue interlocutory and per- junction prohibiting enforcement of correct the violation of a federal right. manent injunctions regarding chal- 187, and to this day it has never been This measure would also prohibit a lenged laws at the district court level. the law of the state of California. federal court from having the author- The current system allows a single fed- U.S. District Judge Mariana Pfaelzer ity to order a unit of state or local gov- eral judge to restrain the enforcement, issued a preliminary injunction soon ernment to increase taxes as part of a operation and execution of challenged after the 1994 election and ruled way judicial remedy. When an unelected federal or state laws, including initia- back in 1995 that part of 187 was uncon- Federal judge has the power to order tives. There have been many instances stitutional. The injunction stayed in tax increases, this results in taxation where an activist judge has used this effect and she finally ruled on the rest without representation. Americans power to overturn a ballot initiative of the initiative in March of this year, have fought against unfair taxation only to have his or her order over- when she found that an additional por- since the Revolutionary War, and this turned by a higher court years later. tion of the initiative was unconstitu- bill would prevent unfair judicial tax- For example, this change would have tional. The proposed time limitation ation and leave the power to tax to prevented U.S. District Court Judge on injunctions would have been an in- elected representatives of the people. S6188 CONGRESSIONAL RECORD — SENATE June 11, 1998 The bill would not limit the author- ing the termination of relief has the there is a Judge Shapiro waiting anx- ity of a Federal court to order a rem- burden of demonstrating why the relief iously for the chance to release law- edy which may lead a unit of local or should not be terminated, and the lessness on our communities? This re- State government to decide to increase court is required to grant the motion form bill will prevent Judge Shapiro taxes. A Federal court would still have to terminate if the opposing party fails and other like-minded judges from ever the power to issue a money judgment to meet its burden. These provisions endangering families and children in against a State because the court prevent consent decrees from remain- our communities again by preventing would not be attempting to restructure ing in effect once a proper remedy has these Judges from releasing prisoners local government entities or mandat- been implemented, thereby preventing based on prison conditions. ing a particular method or structure of judges from imposing consent decrees Prison life is not supposed to be State or local financing. This bill also that go beyond the requirements of pleasant or comfortable; rather, it is doesn’t limit the remedial authority of law. supposed to serve as a deterrent to fu- State courts in any case, including The proposed reform law also in- ture crime. I would be worried if no cases raising issues of federal law. All cludes provisions designed to dissuade prisoners were filing complaints be- the bill does is prevent Federal courts prisoners from filing frivolous and ma- cause they actually found prison life to from having the power to order elected licious motions by requiring that the be acceptable. But it seems that some representatives to raise taxes. This is complainant prisoner pay for the costs activist judges are willing to believe moderate reform which prevents judi- of the filings. These provisions will un- any prisoner complaint equates or rises cial activism and unfair taxation while doubtedly curb the number of frivolous to the level of a constitutional viola- preserving the Federal courts power to motions filed by prisoners and thus, re- tion. It seems that in some court- order remedial measures. lieve the courts of the obligation to rooms, if a prisoner simply files a com- Another important provision of the hear these vacuous motions designed to plaint alleging prison conditions aren’t bill would prevent a federal court from mock and frustrate the judicial sys- laudable or praiseworthy, chances are prohibiting State or local officials tem. good that that prisoner, and many oth- from re-prosecuting a defendant. This Finally, the bill proposes to prevent ers, will be released from custody legislation is designed to clarify that federal judges from entering or carry- early, sometimes immediately, thanks federal habeas courts lack the author- ing out any prisoner release order that to the misguided activism of the judge ity to bar retrial as a remedy. would result in the release from or hearing the complaint. This is abso- This part of the legislation was co- nonadmission to a prison on the basis lutely unacceptable and this proposed sponsored by Congressman PITTS and of prison conditions. This provision law will put a stop to the agendas of Senator SPECTER in response to a high- will effectively preclude activist judges some activist judges who believe every ly-publicized murder case in the Con- from circumventing mandatory mini- argument that the ACLU and guilty, gressman’s district. Sixteen year old mum sentencing laws by stripping the but bored, convicts offer up. Laurie Show was harassed, stalked and federal judges of jurisdiction to enter This overdue legislation is a meas- assaulted for six months by the defend- such orders. This will ensure that the ured effort to improve the way the fed- ant, who had a vendetta against Show tough sentencing laws approved by vot- eral judiciary works. It fights judicial for briefly dating the defendant’s boy- ers to keep murderers, rapists, and activism and actually improves the friend. After luring Show’s mother drug dealers behind bars for lengthy way constitutional appeals are han- from their residence, the defendant and terms will not be ignored by activist dled. This reform bill is a sensible, bal- an accomplice forcefully entered the judges who improperly use complaints anced attempt to promote judicial effi- Show home, held the victim down, and of prison conditions filed by convicts as ciency and to prevent egregious judi- slit her throat with a butcher knife, a vehicle to release violent offenders cial activism. I encourage my col- killing her. After the defendant was back on our streets. leagues to act swiftly on this needed convicted in State court, she filed a ha- For an example of this activism, I reform. beas petition in which she alleged pros- offer the rulings of a jurist whom I Mr. President, I ask unanimous con- ecutorial misconduct and averred her have mentioned before, Federal Judge sent that a copy of this measure be actual innocence. Federal district Norma Shapiro, who sits on the Fed- printed in the RECORD. court judge Stewart Dalzell not only eral bench in Philadelphia. Judge Sha- There being no objection, the bill was accepted this argument and released piro has a different view of what prison ordered to be printed in the RECORD, as the defendant, but he also took the ex- life should be: a view completely diver- follows: traordinary step of barring state and gent from the view of the general pub- S. 2163 local officials from reprosecuting the lic and, most importantly, the law. Be it enacted by the Senate and House of Rep- woman. Judge Dalzell stated that the Judge Shapiro used complaints filed resentatives of the United States of America in defendant was the ‘‘first and foremost by inmates to impose her activist Congress assembled, victim of this affair.’’ views and wrestle control of the prison SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Congress has long supported the abil- system by setting a cap on the number (a) SHORT TITLE.—This Act may be cited as ity of a Federal court to fashion cre- of prisoners that can be incarcerated in the ‘‘Judicial Improvement Act of 1998’’. ative remedies to preserve constitu- Pennsylvania. When faced with the op- (b) TABLE OF CONTENTS.—The table of con- tional protections, but the additional portunity to extend her judicial powers tents for this Act is as follows: step of barring state or local officials and seize control of the prison system, Sec. 1. Short title; table of contents. Sec. 2. Procedures for certain injunctions. from reprosecution is without prece- Judge Shapiro jumped at the chance Sec. 3. Limitations on remedial authority. dent and an unacceptable intrusion on and the results have been disastrous. Sec. 4. Interlocutory appeals of court orders the rights of states. This bill, if en- The cap imposed by Judge Shapiro relating to class actions. acted, will prevent this type of judicial forced the release of 500 prisoners a Sec. 5. Multiparty, multiforum jurisdiction activism from ever occurring again. week. Because of this cap, in a time pe- of district courts. This bill also contains provisions for riod of 18 months alone, 9,732 arrestees Sec. 6. Appeals of Merit Systems Protection the termination of prospective relief were released on Philadelphia. Of Board. when it is no longer warranted to cure course, many were re-arrested on other Sec. 7. Extension of Judiciary Information Technology Fund. a violation of a federal right. Once a charges, including 79 murders, 90 rapes, Sec. 8. Authorization for voluntary services. violation that was the subject of a con- 701 burglaries, 959 robberies, 1,113 as- Sec. 9. Offsetting receipts. sent decree has been corrected, a con- saults, 2,215 drug offenses and 2,748 Sec. 10. Sunset of civil justice expense and sent decree must be terminated unless thefts. [Philadelphia Inquirer]. Releas- delay reduction plans. the court finds that an ongoing viola- ing dangerous criminals on to the Sec. 11. Creation of certifying officers in the tion of a federal right exists, the spe- streets to reek havoc and violence is judicial branch. Sec. 12. Limitation on collateral relief. cific relief is necessary to correct the the ultimate slap in the faces of law Sec. 13. Laurie Show victim protection. violation of a Federal right, and no enforcement and justice. How can we Sec. 14. Rule of construction relating to ret- other relief will correct the violation expect law enforcement to provide pro- roactive application of stat- of the Federal right. The party oppos- tection and safe streets if at every turn utes. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6189

Sec. 15. Appropriate remedies for prison con- (2) the term ‘‘State law’’ means the con- (C) SELECTION.—The court shall select the ditions. stitution of a State, or any statute, ordi- special master from the remaining names on Sec. 16. Limitation on fees. nance, rule, regulation, or other measure of the lists after the operation of subparagraph Sec. 17. Notice of malicious filings. a State that has the force of law, and any (B). Sec. 18. Limitation on prisoner release or- amendment thereto; and (3) COMPENSATION.—The compensation to ders. (3) the term ‘‘referendum’’ means the sub- be paid to a special master shall be based on Sec. 19. Repeal of section 140. mission to popular vote of a measure passed an hourly rate not greater than the hourly Sec. 20. Severability. upon or proposed by a legislative body or by rate established under section 3006A of title SEC. 2. PROCEDURES FOR CERTAIN INJUNC- popular initiative. 18, United States Code, for payment of court- TIONS. (d) EFFECTIVE DATE.—This section applies appointed counsel, and costs reasonably in- (a) REQUIREMENT OF 3-JUDGE COURT.— to any injunction that is issued on or after curred by the special master. Such com- (1) IN GENERAL.—No interlocutory or per- the date of the enactment of this Act. pensation and costs shall be paid with funds manent injunction restraining the enforce- SEC. 3. LIMITATIONS ON REMEDIAL AUTHORITY. appropriated to the Judiciary. ment, operation, or execution of a State law (a) TERMINATION OF PROSPECTIVE RELIEF.— (4) REGULAR REVIEW OF APPOINTMENT.—The adopted by referendum or an Act of Congress (1) IN GENERAL.—In any civil action in court shall review the appointment of the shall be granted by a United States district which prospective relief is issued which special master every 6 months to determine court or judge thereof upon the ground that binds State or local officials or in any civil whether the services of the special master the State law conflicts with the United action in which the parties entered a consent continued to be justified under the standards States Constitution, Federal law, or a treaty judgment binding State or local officials, of paragraph (1). of the United States unless the application such relief shall be terminable upon the mo- (5) LIMITATIONS ON POWERS AND DUTIES.—A for the injunction is heard and determined tion of any party or intervener— special master appointed under this sub- by a court of 3 judges in accordance with sec- (A) 5 years after the date the court granted section— tion 2284 of title 28, United States Code. or approved the prospective relief; (A) shall not make any finding or commu- (2) APPEALS.—Any appeal of a determina- (B) 2 years after the date the court has en- nication ex parte; and tion on such application shall be to the Cir- tered an order denying termination of pro- (B) may be removed by the judge at any cuit Court of Appeals. spective relief under this paragraph; or time, but shall be relieved of the appoint- (3) DESIGNATION OF JUDGES.—In any case to (C) in the case of an order issued on or be- ment upon termination of relief. which this section applies, the additional fore the date of enactment of this Act, 2 (c) JUDICIAL TAXATION PROHIBITED.— judges who will serve on the 3-judge court years after the date of enactment. (1) IN GENERAL.—No Federal court shall shall be designated under section 2284(b)(1) of (2) LIMITATION.—Prospective relief shall have the authority to order a unit of Fed- title 28, United States Code, as soon as prac- not terminate if the court makes written eral, State, or local government to increase ticable, and the court shall expedite the con- findings based on the record that prospective taxes as part of a judicial remedy. sideration of the application for an injunc- relief— (2) REMEDIAL AUTHORITY OTHERWISE UNAF- tion. (A) remains necessary to correct current FECTED.—Nothing in paragraph (1) shall be (4) DENIAL OF REQUEST.—Nothing in this and ongoing violation of a Federal right; construed to limit the authority of a Federal subsection shall prevent a district court (B) extends no further than necessary to court to order a remedy that may lead a unit judge from denying a request for interlocu- correct the violation of a Federal right; and of local or State government to decide to in- tory or permanent injunctive relief. (C) is the least intrusive means available crease taxes. (b) TIME LIMITS ON INJUNCTIVE RELIEF.— to correct the violation of a Federal right. (d) STATE COURT REMEDIES UNAFFECTED.— (1) TEMPORARY RESTRAINING ORDER.—Sec- (3) TERMINATION AND MODIFICATION AUTHOR- Nothing in this section shall limit the reme- tion 2284(b)(3) of title 28, United States Code, ITY OTHERWISE UNAFFECTED.—Nothing in this dial authority of State courts in any case, is amended in the second sentence by insert- section shall prevent any party or intervener including cases raising issues of Federal law. ing before the period, the following: ‘‘, but in from seeking modification or termination SEC. 4. INTERLOCUTORY APPEALS OF COURT OR- no event shall the order remain in force for before relief is available under paragraph (1), DERS RELATING TO CLASS ACTIONS. longer than 10 days’’. to the extent that modification or termi- (a) INTERLOCUTORY APPEALS.—Section (2) INTERLOCUTORY INJUNCTION.—Any inter- nation would otherwise be legally permis- 1292(b) of title 28, United States Code, is locutory injunction restraining the enforce- sible, and nothing in this section shall pre- amended— ment or operation of a State law adopted by vent the parties from agreeing to terminate (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and referendum or an Act of Congress shall re- or modify an injunction before such relief is (2) by adding at the end the following: main in force for not longer than 60 days. available under paragraph (1). ‘‘(2) The court of appeals which would have The Federal courts shall lack the authority (4) CONFORMITY WITH OTHER LAWS.—Nothing jurisdiction over a final order in an action to grant any additional interlocutory relief in this section shall affect the rules govern- may, in its discretion, permit an appeal from after the expiration of an interlocutory in- ing prospective relief in any civil action with an order of a district court granting or deny- junction. Nothing in this paragraph shall respect to prison conditions. ing class action certification made to it limit the court’s authority to issue a perma- (5) PROCEDURE FOR MOTION TO TERMINATE.— within 10 days after the entry of the order. nent injunction after an interlocutory in- (A) IN GENERAL.—The court shall rule An appeal under this paragraph shall not junction has expired. If the order granting promptly on any motion to modify or termi- stay proceedings in the district court unless the interlocutory injunction is appealed, the nate relief. the district judge or the court of appeals or time limits of paragraph (4) apply. (B) AUTOMATIC TERMINATION.—In the event a judge thereof shall so order.’’. (3) FILING OF APPEAL.—A notice of appeal a court does not rule on a motion to termi- (b) EFFECTIVE DATE.—The amendment from an order granting an interlocutory in- nate filed under paragraph (1) within 60 days, made by subsection (a) applies to any action junction restraining the enforcement or op- the order or consent judgment binding State commenced on or after the date of enact- eration, of a State law adopted by referen- or local officials will automatically termi- ment of this Act. dum or an Act of Congress shall be filed not nate and be of no further legal force. SEC. 5. MULTIPARTY, MULTIFORUM JURISDIC- later than 14 days after the date of the order. (b) SPECIAL MASTERS.— TION OF DISTRICT COURTS. The Courts of Appeals lack jurisdiction over (1) IN GENERAL.— (a) BASIS OF JURISDICTION.— an untimely appeal of such an order. (A) APPOINTMENT.—In any civil action in a (1) IN GENERAL.—Chapter 85 of title 28, (4) CONSIDERATION OF APPEAL.—If an appeal Federal court, the Federal court may ap- United States Code, is amended by adding at is filed from an order granting an interlocu- point a special master who shall be disin- the end the following: tory injunction restraining the enforcement terested and objective. or operation of a State law adopted by ref- (B) REMEDIAL PHASE.—The court shall ap- ‘‘§ 1369. Multiparty, multiforum jurisdiction erendum or an Act of Congress, the Court of point a special master under this subsection ‘‘(a) The district courts shall have original Appeals shall reconsider the merits of grant- only during the remedial phase of the action jurisdiction of any civil action involving ing interlocutory relief applying a de novo and only upon a finding that the remedial minimal diversity between adverse parties standard of review. The Court of Appeals phase will be sufficiently complex to warrant that arises from a single accident, where at shall dispose of the appeal as expeditiously the appointment. least 25 natural persons have either died or as possible, but in any event within 100 days (2) APPOINTMENT.— incurred injury in the accident at a discrete after the issuance of the original order (A) SUBMISSION OF LIST.—If the court deter- location and, in the case of injury, the injury granting interlocutory relief. If the inter- mines that appointment of a special master has resulted in damages which exceed $50,000 locutory order is upheld on appeal, the inter- is necessary, the court shall request that the per person, exclusive of interest and costs, locutory order shall remain in force no defendant (or group of defendants) and the if— longer than 60 days after the date of the ap- plaintiff (or group of plaintiffs) each submit ‘‘(1) a defendant resides in a State and a pellate decision or until replaced by a per- a list of not more than 5 persons to serve as substantial part of the accident took place in manent injunction. a special master. another State or other location, regardless (c) DEFINITIONS.—In this section— (B) REMOVAL.—Each party shall have the of whether that defendant is also a resident (1) the term ‘‘State’’ means each of the opportunity to remove up to 3 persons from of the State where a substantial part of the several States and the District of Columbia; the opposing party’s list. accident took place; S6190 CONGRESSIONAL RECORD — SENATE June 11, 1998 ‘‘(2) any 2 defendants reside in different with respect to the liability determination peal. Once the remand has become effective, States, regardless of whether such defend- and the choice of law determination of the the liability determination and the choice of ants are also residents of the same State or transferee court may be taken during that law determination shall not be subject to States; or 60-day period to the court of appeals with ap- further review by appeal or otherwise. ‘‘(3) substantial parts of the accident took pellate jurisdiction over the transferee ‘‘(4) Any decision under this subsection place in different States. court. In the event a party files such an ap- concerning remand for the determination of ‘‘(b) For purposes of this section— peal, the remand shall not be effective until damages shall not be reviewable by appeal or ‘‘(1) minimal diversity exists between ad- the appeal has been finally disposed of. Once otherwise. verse parties if any party is a citizen of a the remand has become effective, the liabil- ‘‘(5) An action removed under this sub- State and any adverse party is a citizen of ity determination and the choice of law de- section shall be deemed to be an action another State, a citizen or subject of a for- termination shall not be subject to further under section 1369 and an action in which ju- eign state, or a foreign state as defined in review by appeal or otherwise. risdiction is based on section 1368 of this section 1603(a); ‘‘(3) An appeal with respect to determina- title for purposes of this section and sections ‘‘(2) a corporation is deemed to be a citizen tion of punitive damages by the transferee 1407, 1660, 1697, and 1785. of any State, and a citizen or subject of any court may be taken, during the 60-day period ‘‘(6) Nothing in this subsection shall re- foreign state, in which it is incorporated or beginning on the date the order making the strict the authority of the district court to has its principal place of business, and is determination is issued, to the court of ap- transfer or dismiss an action on the ground deemed to be a resident of any State in peals with jurisdiction over the transferee of inconvenient forum.’’. (e) CHOICE OF LAW.— which it is incorporated or licensed to do court. (1) DETERMINATION BY THE COURT.—Chapter business or is doing business; ‘‘(4) Any decision under this subsection 111 of title 28, United States Code, is amend- ‘‘(3) the term ‘injury’ means— concerning remand for the determination of ed by adding at the end the following: ‘‘(A) physical harm to a natural person; damages shall not be reviewable by appeal or and otherwise. ‘‘§ 1660. Choice of law in multiparty, ‘‘(B) physical damage to or destruction of ‘‘(5) Nothing in this subsection shall re- multiforum actions tangible property, but only if physical harm strict the authority of the transferee court ‘‘(a)(1) In an action which is or could have described in subparagraph (A) exists; to transfer or dismiss an action on the been brought, in whole or in part, under sec- ‘‘(4) the term ‘accident’ means a sudden ac- ground of inconvenient forum.’’. tion 1369, the district court in which the ac- cident, or a natural event culminating in an (d) REMOVAL OF ACTIONS.—Section 1441 of tion is brought or to which it is removed accident, that results in death or injury in- title 28, United States Code, is amended— shall determine the source of the applicable curred at a discrete location by at least 25 (1) in subsection (e) by striking ‘‘(e) The substantive law, except that if an action is natural persons; and court to which such civil action is removed’’ transferred to another district court, the ‘‘(5) the term ‘State’ includes the District and inserting ‘‘(f) The court to which a civil transferee court shall determine the source of Columbia, the Commonwealth of Puerto action is removed under this section’’; and of the applicable substantive law. In making Rico, and any territory or possession of the (2) by inserting after subsection (d) the fol- this determination, a district court shall not United States. lowing: be bound by the choice of law rules of any ‘‘(c) In any action in a district court which ‘‘(e)(1)(A) Notwithstanding the provisions State, and the factors that the court may is or could have been brought, in whole or in of subsection (b), a defendant in a civil ac- consider in choosing the applicable law in- part, under this section, any person with a tion in a State court may remove the action clude— claim arising from the accident described in to the district court of the United States for ‘‘(A) the place of the injury; subsection (a) shall be permitted to inter- the district and division embracing the place ‘‘(B) the place of the conduct causing the vene as a party plaintiff in the action, even where the action is pending if— injury; if that person could not have brought an ac- ‘‘(i) the action could have been brought in ‘‘(C) the principal places of business or tion in a district court as an original matter. a United States district court under section domiciles of the parties; ‘‘(d) A district court in which an action 1369; or ‘‘(D) the danger of creating unnecessary in- under this section is pending shall promptly ‘‘(ii) the defendant is a party to an action centives for forum shopping; and notify the judicial panel on multidistrict which is or could have been brought, in ‘‘(E) whether the choice of law would be litigation of the pendency of the action.’’. whole or in part, under section 1369 in a reasonably foreseeable to the parties. United States district court and arises from ‘‘(2) The factors set forth in paragraph (1) (2) CONFORMING AMENDMENT.—The table of (A) through (E) shall be evaluated according sections at the beginning of chapter 85 of the same accident as the action in State to their relative importance with respect to title 28, United States Code, is amended by court, even if the action to be removed could the particular action. If good cause is shown adding at the end the following: not have been brought in a district court as an original matter. in exceptional cases, including constitu- ‘‘1369. Multiparty, multiforum jurisdiction.’’. ‘‘(B) The removal of an action under this tional reasons, the court may allow the law (b) VENUE.—Section 1391 of title 28, United subsection shall be made in accordance with of more than 1 State to be applied with re- States Code, is amended by adding at the end section 1446, except that a notice of removal spect to a party, claim, or other element of the following: may also be filed before trial of the action in an action. ‘‘(g) A civil action in which jurisdiction of State court within 30 days after the date on ‘‘(b) The district court making the deter- the district court is based upon section 1369 which the defendant first becomes a party to mination under subsection (a) shall enter an may be brought in any district in which any an action under section 1369 in a United order designating the single jurisdiction defendant resides or in which a substantial States district court that arises from the whose substantive law is to be applied in all part of the accident giving rise to the action same accident as the action in State court, other actions under section 1369 arising from took place.’’. or at a later time with leave of the district the same accident as that giving rise to the (c) MULTIDISTRICT LITIGATION.—Section court. action in which the determination is made. 1407 of title 28, United States Code, is amend- ‘‘(2) Whenever an action is removed under The substantive law of the designated juris- ed by adding at the end the following: this subsection and the district court to diction shall be applied to the parties and ‘‘(i)(1) In actions transferred under this which it is removed or transferred under sec- claims in all such actions before the court, section when jurisdiction is or could have tion 1407(i) has made a liability determina- and to all other elements of each action, ex- been based, in whole or in part, on section tion requiring further proceedings as to dam- cept where Federal law applies or the order 1369, the transferee district court may retain ages, the district court shall remand the ac- specifically provides for the application of actions so transferred for the determination tion to the State court from which it had the law of another jurisdiction with respect of liability and punitive damages notwith- been removed for the determination of dam- to a party, claim, or other element of an ac- standing any other provision of this section. ages, unless the court finds that, for the con- tion. An action retained for the determination of venience of parties and witnesses and in the ‘‘(c) In an action remanded to another dis- liability shall be remanded to the district interest of justice, the action should be re- trict court or a State court under section court from which the action was transferred, tained for the determination of damages. 1407(i)(1) or 1441(e)(2), the district court’s or to the State court from which the action ‘‘(3) Any remand under paragraph (2) shall choice of law under subsection (b) shall con- was removed, for the determination of dam- not be effective until 60 days after the dis- tinue to apply.’’. ages, other than punitive damages, unless trict court has issued an order determining (2) CONFORMING AMENDMENT.—The table of the court finds, for the convenience of par- liability and has certified its intention to re- sections at the beginning of chapter 111 of ties and witnesses and in the interest of jus- mand the removed action for the determina- title 28, United States Code, is amended by tice, that the action should be retained for tion of damages. An appeal with respect to adding at the end the following: the determination of damages. the liability determination and the choice of ‘‘1660. Choice of law in multiparty, ‘‘(2) Any remand under paragraph (1) shall law determination of the district court may multiforum actions.’’. not be effective until 60 days after the trans- be taken during that 60-day period to the (f) SERVICE OF PROCESS.— feree court has issued an order determining court of appeals with appellate jurisdiction (1) OTHER THAN SUBPOENAS.— liability and has certified its intention to re- over the district court. In the event a party (A) IN GENERAL.—Chapter 113 of title 28, mand some or all of the transferred actions files such an appeal, the remand shall not be United States Code, is amended by adding at for the determination of damages. An appeal effective until the final disposition of the ap- the end the following: June 11, 1998 CONGRESSIONAL RECORD — SENATE S6191 ‘‘§ 1697. Service in multiparty, multiforum ac- ‘‘(2) No person may volunteer personal the same extent as provided by law with re- tions services under this subsection unless the per- spect to the enforcement of the liability of ‘‘When the jurisdiction of the district son has first agreed, in writing, to waive any disbursing and other accountable officers. A court is based in whole or in part upon sec- claim against the United States arising out certifying officer shall be required to make tion 1369, process, other than subpoenas, may of or in connection with such services, other restitution to the United States for the be served at any place within the United than a claim under chapter 81 of title 5. amount of any illegal, improper, or incorrect States, or anywhere outside the United ‘‘(3) No person volunteering personal serv- payment resulting from any false, inac- States if otherwise permitted by law.’’. ices under this subsection shall be considered curate, or misleading certificates made by (B) CONFORMING AMENDMENT.—The table of an employee of the United States for any the certifying officer, as well as for any pay- sections at the beginning of chapter 113 of purpose other than for purposes of— ment prohibited by law or which did not rep- title 28, United States Code, is amended by ‘‘(A) chapter 81 of title 5; or resent a legal obligation under the appro- adding at the end the following: ‘‘(B) chapter 171 of this title. priation or fund involved. ‘‘(4) In the administration of this sub- ‘‘1697. Service in multiparty, multiforum ac- ‘‘(c) A certifying or disbursing officer— section, the Administrative Assistant shall tions.’’. ‘‘(1) has the right to apply for and obtain a ensure that the acceptance of personal serv- decision by the Comptroller General on any (2) SERVICE OF SUBPOENAS.— ices shall not result in the reduction of pay question of law involved in a payment re- (A) IN GENERAL.—Chapter 117 of title 28, or displacement of any employee of the Su- quest presented for certification; and United States Code, is amended by adding at preme Court.’’. ‘‘(2) is entitled to relief from liability aris- the end the following: SEC. 9. OFFSETTING RECEIPTS. ing under this section in accordance with ‘‘§ 1785. Subpoenas in multiparty, multiforum For fiscal year 1999 and thereafter, any title 31. actions portion of miscellaneous fees collected as ‘‘(d) Nothing in this section affects the au- ‘‘When the jurisdiction of the district prescribed by the Judicial Conference of the thority of the courts with respect to moneys court is based in whole or in part upon sec- United States pursuant to sections 1913, deposited with the courts under chapter tion 1369 of this title, a subpoena for attend- 1914(b), 1926(a), 1930(b), and 1932 of title 28, 129.’’. ance at a hearing or trial may, if authorized United States Code, exceeding the amount of (b) CONFORMING AMENDMENT.—The table of by the court upon motion for good cause such fees in effect on September 30, 1998, sections for chapter 41 of title 28, United shown, and upon such terms and conditions shall be deposited into the special fund of the States Code, is amended by adding at the end as the court may impose, be served at any Treasury established under section 1931 of the following: place within the United States, or anywhere title 28, United States Code. outside the United States if otherwise per- SEC. 10. SUNSET OF CIVIL JUSTICE EXPENSE AND ‘‘613. Disbursing and certifying officers.’’. mitted by law.’’. DELAY REDUCTION PLANS. (c) DUTIES OF DIRECTOR.—Paragraph (8) of (B) CONFORMING AMENDMENT.—The table of Section 103(b)(2)(A) of the Civil Justice Re- subsection (a) of section 604 of title 28, sections at the beginning of chapter 117 of form Act of 1990 (Public Law 101–650; 104 United States Code, is amended to read as title 28, United States Code, is amended by Stat. 5096; 28 U.S.C. 471 note), as amended by follows: adding at the end the following: Public Law 105–53 (111 Stat. 1173), is amended ‘‘(8) Disburse appropriations and other ‘‘1785. Subpoenas in multiparty, multiforum by inserting ‘‘471,’’ after ‘‘sections’’. funds for the maintenance and operation of actions.’’. SEC. 11. CREATION OF CERTIFYING OFFICERS IN the courts;’’. THE JUDICIAL BRANCH. (g) EFFECTIVE DATE.—The amendments SEC. 12. LIMITATION ON COLLATERAL RELIEF. made by this section shall apply to a civil (a) APPOINTMENT OF DISBURSING AND CER- TIFYING OFFICERS.—Chapter 41 of title 28, (a) IN GENERAL.—No writ of habeas corpus action if the accident giving rise to the cause or other post-conviction remedy under sec- of action occurred on or after the 90th day United States Code, is amended by adding at the end the following: tion 2241, 2244, 2254, or 2255 of title 28, United after the date of the enactment of this Act. States Code, or any other provision of Fed- ‘‘§ 613. Disbursing and certifying officers SEC. 6. APPEALS OF MERIT SYSTEMS PROTEC- eral law, shall lie to challenge the custody or TION BOARD. ‘‘(a)(1) The Director may designate in writ- sentence of a person on the ground that the (a) APPEALS.—Section 7703 of title 5, ing officers and employees of the judicial custody or sentence of the person is the re- United States Code, is amended— branch of the Government, including the sult in whole or in part of the voluntarily (1) in subsection (b)(1), by striking ‘‘30’’ courts as defined in section 610 other than given confession of the person. and inserting ‘‘60’’; and the Supreme Court, to be disbursing officers (b) DETERMINATIONS REGARDING POST-CON- (2) in the first sentence of subsection (d), in such numbers and locations as the Direc- VICTION REMEDIES.—For purposes of sub- by inserting after ‘‘filing’’ the following: ‘‘, tor considers necessary. section (a), in determining whether any post- within 60 days after the date the Director re- ‘‘(2) Disbursing officers shall— conviction remedy lies under any provision ceived notice of the final order or decision of ‘‘(A) disburse moneys appropriated to the of law described in subsection (a), as well as the Board,’’. judicial branch and other funds only in strict in determining whether any such remedy (b) EFFECTIVE DATE.—The amendments accordance with payment requests certified should be granted— made by subsection (a) take effect on the by the Director or in accordance with sub- (1) the court shall apply the standards set date of enactment of this Act and apply to section (b); forth in section 3501(b) of title 18, United any administrative or judicial proceeding ‘‘(B) examine payment requests as nec- States Code; and pending on that date or commenced on or essary to ascertain whether such requests (2) in applying the standards described in after that date. are in proper form, certified, and approved; paragraph (1) in any case seeking a post-con- SEC. 7. EXTENSION OF JUDICIARY INFORMATION and viction remedy from a State court convic- TECHNOLOGY FUND. ‘‘(C) be held accountable for their actions tion, the court shall apply the standards set Section 612 of title 28, United States Code, as provided by law, except that such a dis- forth in section 2254(d) of title 28, United is amended— bursing officer shall not be held accountable States Code. (1) by striking ‘‘equipment’’ each place it or responsible for any illegal, improper, or appears and inserting ‘‘resources’’; incorrect payment resulting from any false, (c) DEFINITION OF CONFESSION.—In this sec- (2) by striking subsection (f) and redesig- inaccurate, or misleading certificate for tion, the term ‘‘confession’’ has the same nating subsequent subsections accordingly; which a certifying officer is responsible meaning as in section 3501(e) of title 18, (3) in subsection (g), as so redesignated, by under subsection (b). United States Code. striking paragraph (3); and ‘‘(b)(1)(A) The Director may designate in (d) NO EFFECT ON OTHER LAW.—Nothing in (4) in subsection (i), as so redesignated— writing officers and employees of the judicial this section shall be construed to modify or (A) by striking ‘‘Judiciary’’ each place it branch of the Government, including the otherwise affect any requirement under Fed- appears and inserting ‘‘judiciary’’; courts as defined in section 610 other than eral law relating to the obtaining or grant- (B) by striking ‘‘subparagraph (c)(1)(B)’’ the Supreme Court, to certify payment re- ing of post-conviction relief. and inserting ‘‘subsection (c)(1)(B)’’; and quests payable from appropriations and SEC. 13. LAURIE SHOW VICTIM PROTECTION. (C) by striking ‘‘under (c)(1)(B)’’ and in- funds. Section 2254 of title 28, United States Code, serting ‘‘under subsection (c)(1)(B)’’. ‘‘(B) Certifying officers shall be responsible is amended by adding at the end the follow- and accountable for— SEC. 8. AUTHORIZATION FOR VOLUNTARY SERV- ing: ICES. ‘‘(i) the existence and correctness of the Section 677 of title 28, United States Code, facts recited in the certificate or other re- ‘‘(j) No Federal court shall specifically bar is amended by adding at the end the follow- quest for payment or its supporting papers; the retrial in State court of a person filing ing: ‘‘(ii) the legality of the proposed payment the writ of habeas corpus.’’. ‘‘(c)(1) Notwithstanding section 1342 of under the appropriation or fund involved; SEC. 14. RULE OF CONSTRUCTION RELATING TO title 31, the Administrative Assistant, with and RETROACTIVE APPLICATION OF the approval of the Chief Justice, may accept ‘‘(iii) the correctness of the computations STATUTES. voluntary personal services for the purpose of certified payment requests. (a) IN GENERAL.—Chapter 1 of title 1, of providing tours of the Supreme Court ‘‘(2) The liability of a certifying officer United States Code, is amended by adding at building. shall be enforced in the same manner and to the end the following: S6192 CONGRESSIONAL RECORD — SENATE June 11, 1998 ‘‘§ 8. Rules for determining the retroactive ef- ‘‘(A) Federal law requires such relief to be ‘‘(VII) the reasons for which, in the ab- fect of legislation ordered in violation of State or local law; sence of prospective relief, each defendant as ‘‘(a) Any Act of Congress enacted after the ‘‘(B) the specific relief is necessary to cor- to whom the relief would be maintained effective date of this section shall be pro- rect the violation of a Federal right; and would not take adequate measures to correct spective in application only unless a provi- ‘‘(C) no other relief will correct the viola- the violation of the Federal right. sion included in the Act expressly specifies tion of the Federal right.’’; ‘‘(iv) The answer shall be accompanied by otherwise. (4) in subsection (f), as redesignated— affidavits, references to the record, and any ‘‘(b) In applying this section, a court shall (A) in paragraph (3), in the first sentence, other materials on which the plaintiff relies determine the relevant retroactivity event by inserting before the period at the end of to support the allegations required to be con- in an Act of Congress (if such event is not the sentence the following: ‘‘, including that tained in the answer under clause (ii) or (iii). specified in such Act) for purposes of deter- the case requires the determination of com- ‘‘(B) CONTENTS OF RESPONSE TO ANSWER.— mining if the Act— plex or novel questions of law, or that the ‘‘(i) IN GENERAL.—If the defendant disputes ‘‘(1) is prospective in application only; or court plans to order or has ordered a hearing plaintiff’s factual allegations, defendant ‘‘(2) affects conduct that occurred before under paragraph (5)(E) or discovery under shall file a response to the answer setting the effective date of the Act.’’. paragraph (5)(F)’’; and forth the factual allegations the defendant (b) TECHNICAL AND CONFORMING AMEND- (B) by adding at the end the following: challenges. MENT.—The table of sections for chapter 1 of ‘‘(5) TERMINATION OF PROSPECTIVE RELIEF.— ‘‘(ii) ADDITIONAL REQUIREMENTS.—In any title 1, United States Code, is amended by ‘‘(A) CONTENTS OF ANSWER TO MOTION TO case where the defendant seeks termination adding after the item relating to section 7 TERMINATE.— of the relief on the ground that it is not nar- the following: ‘‘(i) IN GENERAL.—In the answer to the mo- rowly tailored, overly intrusive, or poses too ‘‘8. Rules for determining retroactive effect tion to terminate prospective relief, the great a burden on public safety or the oper- of legislation.’’. plaintiff may oppose termination in accord- ation of a criminal justice system, or that it SEC. 15. APPROPRIATE REMEDIES FOR PRISON ance with this subparagraph, on the ground requires the defendant to violate State or CONDITIONS. that the prospective relief remains necessary local law without meeting the requirements (a) TRANSFER AND REDESIGNATION.—Section to correct a current and ongoing violation of of subsection (a)(1)(B)— 3626 of title 18, United States Code, is— a Federal right. ‘‘(I) the defendant shall set forth the fac- (1) transferred to the Civil Rights of Insti- ‘‘(ii) RELIEF ENTERED BEFORE ENACTMENT tual basis for these claims in its response; tutionalized Persons Act (42 U.S.C. 1997 et OF PRISON LITIGATION REFORM ACT.—If the and seq.); prospective relief sought to be terminated ‘‘(II) the defendant shall also set forth al- (2) redesignated as section 13 of that Act; was entered before the date of enactment of ternative relief that would correct the viola- and the Prison Litigation Reform Act, the an- tion of the Federal right and that is more (3) inserted after section 12 of that Act (42 swer opposing termination under clause (i) narrowly tailored, less intrusive, less bur- U.S.C. 1997j). shall allege— densome to public safety or the operation of (b) AMENDMENTS.—Section 13 of the Civil ‘‘(I) the specific Federal right alleged to be the affected criminal justice system, or does Rights of Institutionalized Persons Act, as the object of a current violation; not require a violation of State or local law. redesignated by subsection (a) of this sec- ‘‘(II) specific facts that, if true, would es- ‘‘(iii) SUPPORTING DOCUMENTATION.—The de- tion, is amended— tablish that current violation; fendant’s response shall be accompanied by (1) in subsection (b)(3), by adding at the ‘‘(III) the particular plaintiff or plaintiffs affidavits, references to the record, and any end the following: ‘‘Noncompliance with an who are currently suffering actual injury other materials on which the defendant re- order for prospective relief by any party, in- caused by that violation; lies to support its challenge to the plaintiff’s cluding the party seeking termination of ‘‘(IV) the actions of each named defendant factual allegations or the factual basis for that order, shall not constitute grounds for that constitute that violation of the particu- its claims regarding the propriety or scope of refusal to terminate the prospective relief, if lar plaintiff’s or plaintiffs’ right; the relief. the party’s noncompliance does not con- ‘‘(V)(aa) the portion of the complaint or ‘‘(C) BURDEN OF PERSUASION.—The plaintiff stitute a current and ongoing violation of a amended complaint filed prior to the origi- shall have the burden of persuasion with re- Federal right.’’; nal entry of the prospective relief sought to spect to each point required to be contained (2) by redesignating subsections (e) be retained that alleged the violation of that in the answer. The defendant shall have the through (g) as subsections (f) through (h), re- Federal right; burden of persuasion with respect to whether spectively; ‘‘(bb) the portion of the court order origi- the relief extends further than necessary to (3) by inserting after subsection (d) the fol- nally ordering the prospective relief that correct the violation of the Federal right, is lowing: found the violation of that Federal right; or not narrowly drawn nor the least intrusive ‘‘(e) PROCEDURE FOR ENTERING PROSPECTIVE ‘‘(cc) both the materials specified in items means to correct the violation of the Federal RELIEF.— (aa) and (bb), if the violation of right was right, excessively burdens public safety or ‘‘(1) IN GENERAL.—In any civil action with both alleged and established; the operation of a prison system, or requires respect to prison conditions, a court entering ‘‘(VI) the manner in which the current and the defendant to violate State or local law an order for prospective relief shall enter ongoing violation can be remedied by main- without meeting the requirements of sub- written findings specifying— taining the existing prospective relief; and section (a)(1)(B). ‘‘(A) the Federal right the court finds to ‘‘(VII) the reasons for which, in the ab- ‘‘(D) SUMMARY DETERMINATION.—The court have been violated; sence of prospective relief, each defendant as shall grant the motion to terminate if the ‘‘(B) the facts establishing that violation; to whom the relief would be maintained plaintiff’s answer fails to satisfy the require- ‘‘(C) the particular plaintiff or plaintiffs would not take adequate measures to correct ments of subparagraph (A) or if the mate- who suffered actual injury caused by that the violation of the Federal right. rials accompanying the plaintiff’s answer to- violation; ‘‘(iii) RELIEF ENTERED AFTER ENACTMENT OF gether with the materials accompanying the ‘‘(D) the actions of each defendant that PRISON LITIGATION REFORM ACT.—If the pro- defendant’s response fail to carry the plain- warrant and require the entry of prospective spective relief was entered after the date of tiff’s burden of persuasion or fail to create a relief against that defendant; enactment of the Prison Litigation Reform genuine issue of material fact regarding ‘‘(E) the reasons for which, in the absence Act, the answer opposing termination under whether the relief should be maintained. of prospective relief, each defendant as to clause (i) shall allege— ‘‘(E) EVIDENTIARY HEARING.—If the court whom the relief is being entered will not ‘‘(I) the specific Federal right alleged to be determines that there is a genuine issue of take adequate measures to correct the viola- the object of a current violation; material fact that precludes it from making tion of the Federal right; ‘‘(II) specific facts that, if true, would es- a summary determination concerning the ‘‘(F) the reasons for which no more nar- tablish that current violation; motion on the basis of the materials filed by rowly drawn or less intrusive prospective re- ‘‘(III) the particular plaintiff or plaintiffs the parties, the court may conduct a limited lief would correct the current and ongoing who are currently suffering actual injury evidentiary hearing to resolve any disputed violation of the Federal right; and caused by that violation; material facts identified by the court. ‘‘(G) the estimated impact of the prospec- ‘‘(IV) the current actions of each named ‘‘(F) DISCOVERY.—If the court determines tive relief on public safety and the operation defendant that constitute that violation of that the plaintiff’s answer meets the re- of any affected criminal justice system. the particular plaintiff’s or plaintiffs’ right; quirements of paragraph (5)(A), that there ‘‘(2) CONFLICT WITH STATE LAW.—If the pro- ‘‘(V) the findings required by subsection (e) are genuine issues of material fact that pre- spective relief ordered in any civil action made by the court at the time of the original clude it from making a summary determina- with respect to prison conditions requires or entry of the prospective relief that estab- tion concerning the motion based on the ma- permits a government official to exceed his lished that the right had been violated and terial filed by the parties, and that discovery or her authority under State or local law or that the prospective relief was necessary to would assist in resolving these issues, the otherwise violates State law, the court shall, correct the violation; court may permit limited, narrowly tailored, in addition to the findings required under ‘‘(VI) the manner in which the current and and expeditious discovery relating to the dis- paragraph (1), enter findings regarding the ongoing violation can be remedied by main- puted material facts identified by the court. reasons for which— taining the existing prospective relief; and ‘‘(G) FINDINGS.— June 11, 1998 CONGRESSIONAL RECORD — SENATE S6193

‘‘(i) IN GENERAL.—If the court denies the ‘‘(ii) SPECIAL MASTERS COVERED.—This ‘‘(10) the term ‘violation of a Federal motion to terminate prospective relief, the paragraph applies to all special masters ap- right’— court shall enter written findings specify- pointed or reappointed after the date of en- ‘‘(A) means a violation of a Federal con- ing— actment of the Prison Litigation Reform stitutional or Federal statutory right; ‘‘(I) the Federal right the court finds to be Act, regardless of the cause of the expiration ‘‘(B) does not include a violation of a court currently violated; of any initial appointment.’’; order that is not independently a violation of ‘‘(II) the facts establishing that the viola- (D) in paragraph (3), by striking ‘‘under a Federal statutory or Federal constitu- tion is continuing to occur; this subsection’’; tional right; and ‘‘(III) the particular plaintiff or plaintiffs (E) in paragraph (4)— ‘‘(C) shall not be interpreted to expand the who are currently suffering actual injury (i) by striking ‘‘under this section’’; authority of any individual or class to en- caused by that violation; (ii) by inserting ‘‘(A)’’ after ‘‘(4)’’; force the legal rights that individual or class ‘‘(IV) the actions of each defendant that (iii) in subparagraph (A), as so designated, may have pursuant to existing law with re- warrant and require the continuation of the by adding at the end the following: ‘‘In no gard to institutionalized persons, or to ex- prospective relief against that defendant; event shall a court require a party to pay the pand the authority of the United States to ‘‘(V) the reasons for which, in the absence compensation, expenses, or costs of the spe- enforce those rights on behalf of any individ- of continued prospective relief, each defend- cial master. Notwithstanding any other pro- ual or class.’’; and ant as to whom the relief is continued will vision of law (including section 306 of the Act (G) by redesignating paragraphs (8) and (9) not take adequate measures to correct the entitled ‘An Act making appropriations for as paragraphs (9) and (8), respectively, and violation of the Federal right; the Departments of Commerce, Justice, and inserting paragraph (9), as redesignated, ‘‘(VI) the reasons for which no more nar- State, the Judiciary, and related agencies for after paragraph (8), as redesignated. rowly drawn on less intrusive prospective re- the fiscal year ending September 30, 1997,’ lief would correct the current and ongoing (c) TECHNICAL AMENDMENT.—The table of contained in section 101(a) of title I of divi- violation of the Federal right; sections at the beginning of subchapter C of sion A of the Act entitled ‘An Act making ‘‘(VII) the impact of the prospective relief chapter 229 of title 18, United States Code, is omnibus consolidated appropriations for the on public safety and the operation of any af- amended by striking the item relating to fiscal year ending September 30, 1997’ (110 fected criminal justice system; and section 3626. Stat. 3009201)) and except as provided in sub- ‘‘(VIII) if the prospective relief requires SEC. 16. LIMITATION ON FEES. the defendant to violate State or local law, paragraph (B), the requirement under the the reasons for which— preceding sentence shall apply to the com- Section 7 of the Civil Rights of Institu- ‘‘(aa) Federal law requires the continu- pensation and payment of expenses or costs tionalized Persons Act (42 U.S.C. 1997e) is ation of relief that violates State or local of a special master for any action that is amended— law; commenced before, on, or after the date of (1) in subsection (d)— ‘‘(bb) the specific relief is necessary to cor- enactment of the Prison Litigation Reform (A) by striking subparagraphs (A) and (B) rect the violation of a Federal right; and Act.’’; and and inserting the following: ‘‘(cc) no other relief will correct the viola- (iv) by adding at the end the following: ‘‘(A) the fee was directly and reasonably tion of the Federal right. ‘‘(B) The payment requirements under sub- incurred in— ‘‘(ii) REQUIREMENTS FOR MOTIONS ORDERED paragraph (A) shall not apply to the pay- ‘‘(i) proving an actual violation of the BEFORE ENACTMENT OF PRISON LITIGATION RE- ment of a special master who was appointed plaintiff’s Federal rights that resulted in an FORM ACT.—In the case of a motion to termi- before the date of enactment of the Prison order for relief; nate prospective relief entered before the Litigation Reform Act (110 Stat. 1321165 et ‘‘(ii) successfully obtaining contempt sanc- date of enactment of the Prison Litigation seq.) of compensation, expenses, or costs re- tions for a violation of previously ordered Reform Act, in addition to the requirements lating to activities of the special master prospective relief that meets the standards of clause (i), the court’s written findings under this subsection that were carried out set forth in section 13, if the plaintiff made shall also specify— during the period beginning on the date of a good faith effort to resolve the matter ‘‘(I)(aa) the portion of the complaint or enactment of the Prison Litigation Reform without court action; or amended complaint that previously alleged Act and ending on the date of enactment of ‘‘(iii) successfully obtaining court ordered that violation of Federal right; this subparagraph.’’; enforcement of previously ordered prospec- ‘‘(bb) the findings the court made at the (F) in paragraph (5), by striking from ‘‘In tive relief that meets the standards set forth time it originally entered the prospective re- any civil action’’ and all that follows in section 13, if the enforcement order was lief concerning that violation of Federal through ‘‘subsection, the’’ and inserting necessary to prevent an imminent risk of se- right; or ‘‘The’’; and rious bodily injury to the plaintiff and the ‘‘(cc) both the findings specified in items (G) in paragraph (6)— plaintiff made a good faith attempt to re- (aa) and (bb), if the violation was originally (i) by striking ‘‘appointed under this sub- solve the matter without court action; and both alleged and established; and section’’; ‘‘(B) the amount of the fee is proportion- ‘‘(II) the prospective relief previously or- (ii) by striking subparagraph (A) and in- ately related to the court ordered relief for dered to remedy that violation. serting the following: the violation.’’; ‘‘(iii) REQUIREMENTS FOR MOTIONS ORDERED ‘‘(A) may be authorized by a court to con- (B) in paragraph (2), by striking the last AFTER ENACTMENT OF PRISON LITIGATION RE- duct hearings on the record, and shall make sentence and inserting ‘‘If a monetary judg- FORM ACT.—In the case of a motion to termi- any findings based on the record as a ment is the sole or principal relief awarded, nate prospective relief originally ordered whole;’’; the award of attorney’s fees shall not exceed after the date of enactment of the Prison (iii) in subparagraph (B), by striking ‘‘com- 100 percent of the judgment.’’; Litigation Reform Act, in addition to the re- munications;’’ and inserting ‘‘engage in any (C) in paragraph (3)— quirements of clause (i), the court shall also communications ex parte; and’’; and (i) by striking ‘‘greater than 150 percent’’ enter written findings specifying— (iv) by striking subparagraph (C) and re- and inserting ‘‘greater than the lesser of— ‘‘(I) the findings required by subsection (e) designating subparagraph (D) as subpara- ‘‘(A) 100 percent’’; and made by the court at the time the relief was graph (C); and (ii) by striking ‘‘counsel.’’ and inserting originally entered establishing that viola- (6) in subsection (h), as redesignated— ‘‘counsel; or tion of Federal right; and (A) in paragraph (1), by striking ‘‘settle- ‘‘(B) a rate of $100 per hour.’’; and ‘‘(II) the prospective relief previously or- ments’’ and inserting ‘‘settlement agree- (D) in paragraph (4), by striking ‘‘prisoner’’ dered to remedy that violation.’’; ments’’; and inserting ‘‘plaintiff’’; (5) in subsection (g), as redesignated— (B) in paragraph (3)— (2) in subsection (e), by striking ‘‘Federal (A) by striking the subsection designation (i) by inserting ‘‘Federal, State, local, or civil action’’ and inserting ‘‘civil action aris- and heading and inserting the following: other’’ before ‘‘facility’’; ing under Federal law’’ and by striking ‘‘(g) SPECIAL MASTERS FOR CIVIL ACTIONS (ii) by striking ‘‘violations’’ and inserting ‘‘prisoner confined in a jail, prison, or other WITH RESPECT TO PRISON CONDITIONS.—’’; ‘‘a violation’’; correctional facility’’ and inserting ‘‘pris- (B) in paragraph (1)(B), by striking ‘‘under (iii) by striking ‘‘terms and conditions’’ oner who is or has been confined in any pris- this subsection’’; and inserting ‘‘terms or conditions’’; and on’’; (C) in paragraph (2)— (iv) by inserting ‘‘or other post-conviction (3) in subsection (f)— (i) in subparagraph (A), by striking ‘‘insti- conditional or supervised release,’’ after (A) in paragraph (1), by striking ‘‘action tution’’; and ‘‘probation,’’; brought with respect to prison conditions’’ (ii) by adding at the end the following: (C) in paragraph (5), by striking ‘‘or local and inserting ‘‘civil action with respect to ‘‘(D) APPLICABILITY.— facility’’ and inserting ‘‘local, or other facil- prison conditions brought’’ and by striking ‘‘(i) IN GENERAL.—This paragraph shall not ity’’; ‘‘jail, prison, or other correctional facility’’ apply to any special master appointed before (D) in paragraph (8) by striking ‘‘inher- and inserting ‘‘prison’’; and the date of enactment of the Prison Litiga- ent’’; (B) in paragraph (2), by striking ‘‘facility’’ tion Reform Act, unless their original ap- (E) in paragraph (9), by striking the period and inserting ‘‘prison’’; and pointment expires on or after that date of at the end and inserting a semicolon; (4) by striking subsections (g) and (h) and enactment. (F) by adding at the end the following: inserting the following: S6194 CONGRESSIONAL RECORD — SENATE June 11, 1998 ‘‘(g) WAIVER OF RESPONSE.—Any defendant ‘‘§ 1632. Limitation on prisoner release orders constitutional amendments, to in- may waive the right to respond to any com- ‘‘(a) IN GENERAL.—Notwithstanding section creased public education efforts about plaint in any civil action arising under Fed- 13 of the Civil Rights of Institutionalized the problem of judicial activism, to eral law brought by a prisoner. Notwith- Persons Act or any other provision of law, in proposed statutory solutions. The hear- standing any other law or rule of procedure, a civil action with respect to prison condi- ings convinced me that, at a minimum, such waiver shall not constitute an admis- tions, no court of the United States or other sion of the allegations contained in the com- court defined under section 610 shall have ju- we needed to provide some procedural plaint or waive any affirmative defense risdiction to enter or carry out any prisoner mechanisms to make it more difficult available to the defendant. No relief shall be release order that would result in the release for any single judge to issue an activist granted to the plaintiff unless a response has from or nonadmission to a prison, on the order and to make it easier for liti- been filed. The court may direct any defend- basis of prison conditions, of any person sub- gants to force the reconsideration of ant to file a response to the cognizable ject to incarceration, detention, or admis- activist orders. claims identified by the court. The court sion to a facility because of— Since the close of the hearings, I shall specify as to each named defendant the ‘‘(1) a conviction of a felony under the laws have been working with others on the applicable cognizable claims. of the relevant jurisdiction; or Judiciary Committee to fashion legis- ‘‘(h) DEFINITIONS.—In this section, the ‘‘(2) a violation of the terms or conditions terms ‘civil action with respect to prison of parole, probation, pretrial release, or a di- lation that would accomplish these conditions’, ‘prison’, and ‘prisoner’ have the versionary program, relating to the commis- goals. Last fall, I circulated draft lan- meanings given the terms in section 13(h).’’. sion of a felony under the laws of the rel- guage concerning the three legislative SEC. 17. NOTICE OF MALICIOUS FILINGS. evant jurisdiction. proposals that remain my top prior- (a) IN GENERAL.—Chapter 123 of title 28, ‘‘(b) DEFINITIONS.—In this section— ities in this area—requiring a three- United States Code, is amended— ‘‘(1) the terms ‘civil action with respect to judge panel before a federal court can (1) in section 1915A(c)— prison conditions’, ‘prisoner’, ‘prisoner re- lease order’, and ‘prison’ have the meanings strike down a state initiative or an act (A) by striking ‘‘(c) DEFINITION.—As used of Congress as unconstitutional, ex- in this section’’ and inserting the following: given those terms in section 13(h) of the Civil Rights of Institutionalized Persons Act; and panding provisions of the Prison Liti- ‘‘§ 1915C. Definition ‘‘(2) the term ‘prison conditions’ means gation Reform Act to cover other local ‘‘In sections 1915A and 1915B’’; conditions of confinement or the effects of and state institutions, and codifying a (B) by inserting ‘‘Federal, State, local, or actions by government officials on the lives other’’ before ‘‘facility’’; flat prohibition on federal court orders of persons confined in prison.’’. directly increasing taxes. With the help (C) by striking ‘‘violations’’ and inserting (2) CONFORMING AMENDMENT.—The table of of Chairman HATCH, Senator ABRAHAM ‘‘a violation’’; sections for chapter 99 of title 28, United (D) by striking ‘‘terms and conditions’’ and States Code, is amended by adding at the end and others on the Committee, we have inserting ‘‘terms or conditions’’; and the following: added many additional provisions and (E) by inserting ‘‘or other post-conviction ‘‘1632. Limitation on prisoner release or- drafted a comprehensive bill aimed at conditional or supervised release,’’ after ders.’’. improving the federal judiciary. Al- ‘‘probation,’’; and though I would not have included every (2) by inserting after section 1915A the fol- (b) AMENDMENT TO TITLE 18.—Section lowing: 3624(b) of title 18, United States Code, is provision in the bill had I introduced amended— my own bill, the bill reflects the collec- ‘‘§ 1915B. Notice to State authorities of find- (1) in paragraph (1), by striking the fifth ing of malicious filing by a prisoner tive work of the Committee and would sentence and inserting the following: ‘‘Credit substantially improve the workings of ‘‘(a) FINDING.—In any civil action brought that has not been earned may not later be in Federal court by a prisoner (other than a the federal judiciary. granted, and credit that has been revoked Let me take a few moments to dis- prisoner confined in a Federal correctional pursuant to section 3624A may not later be facility), the court may, on its own motion reinstated.’’; and cuss the provisions that are critical to or the motion of any adverse party, make a (2) in paragraph (2), by inserting before the addressing the problem of judicial ac- finding whether— period at the end the following: ‘‘, and may tivism. First and foremost, the bill ad- ‘‘(1) the claim was filed for a malicious be revoked by the Bureau of Prisons for non- dresses the problem of having a single purpose; compliance with institutional disciplinary federal judge strike down a state ref- ‘‘(2) the claim was filed to harass the party regulations at any time before vesting’’. erendum as unconstitutional. Nothing against which it was filed; or SEC. 19. REPEAL OF SECTION 140. ‘‘(3) the claimant testified falsely or other- highlights the undemocratic power of a Section 140 of the joint resolution entitled federal judge more strikingly than wise knowingly presented false allegations, ‘‘A Joint Resolution making further con- pleadings, evidence, or information to the tinuing appropriations for the fiscal year when a single unelected federal judge court. 1982, and for other purposes’’, approved De- invalidates a law passed by the general ‘‘(b) TRANSMISSION OF FINDING.—The court cember 15, 1981 (Public Law 97–92; 95 Stat. public through the initiative process. shall transmit to the State Department of 1200; 28 U.S.C. 461 note) is repealed. Even the Ninth Circuit, the epicenter Corrections or other appropriate authority SEC. 20. SEVERABILITY. of judicial activism in America, has ac- any affirmative finding under subsection (a). If any provision of this Act, an amendment knowledged the strain that a single If the court makes such a finding, the De- made by this Act, or the application of such partment of Corrections or other appropriate judge’s nullification of an initiative provision or amendment to any person or places on our political system. As the authority may, pursuant to State or local circumstance is held to be unconstitutional, law— the remainder of this Act, the amendments court recently noted in an opinion re- ‘‘(1) revoke such amount of good time cred- made by this Act, and the application of the versing such a single-judge nullifica- it or the institutional equivalent accrued to provisions of such to any person or cir- tion: ‘‘A system which permits one the prisoner as is deemed appropriate; or cumstance shall not be affected thereby. judge to block with the stroke of a pen ‘‘(2) consider such finding in determining Mr. ASHCROFT. Mr. President, I rise what 4,736,180 state residents voted to whether the prisoner should be released from enact as law tests the integrity of our prison under any other State or local pro- today to join Senator HATCH in intro- gram governing the release of prisoners, in- ducing the Judicial Improvement Act constitutional democracy.’’ The Coali- cluding parole, probation, other post-convic- of 1998. Many of the provisions of this tion for Economic Equality v. Wilson, 122 tion or supervised release, or diversionary bill stem from a series of hearings I F.3d 692, 699 (9th Cir.), (cert. denied, 118 program.’’. held in the Subcommittee on the Con- S. Ct. 397 (1997). (b) TECHNICAL AMENDMENT.—The table of stitution, Federalism and Property The three-judge panel ameliorates sections at the beginning of chapter 123 of Rights last summer addressing the this problem by requiring that a three- title 28, United States Code, is amended by problem of judicial activism. The hear- judge panel be convened, and a major- inserting after the item relating to section ings focused on the problem of judicial ity of the panel agree, before a state 1915A the following: activism and its impact. The Sub- initiative can be enjoined. The provi- ‘‘1915B. Notice to State authorities of finding sion then addresses the problem of the of malicious filing by prisoner. committee heard testimony from a va- ‘‘1915C. Definition.’’. riety of individuals, from constitu- popular will being preliminarily en- tional scholars to victims of activist joined for long periods of time before a SEC. 18. LIMITATION ON PRISONER RELEASE OR- DERS. judicial orders. The final hearing of the final appealable decision is issued by (a) IN GENERAL.— series focused on potential solutions to providing for an expedited review of (1) AMENDMENT TO TITLE 28.—Chapter 99 of the problem of activism. the injunction. title 28, United States Code, is amended by That final hearing canvassed poten- The three-judge panel provision rec- adding at the end the following: tial solutions ranging from proposed ognizes that there may be situations in June 11, 1998 CONGRESSIONAL RECORD — SENATE S6195 which state initiatives run afoul of the and tries to limit the availability of hibit judges from imposing tax in- Constitution and courts may need to those remedies that are the most intru- creases, and the other would clarify the declare them unconstitutional. But the sive in the courts that are least respon- retroactive application of legislation. bill also recognized that when a federal sible to the people. If people are really This Act states that a Federal judge court takes such an action, it can convinced that courts must levy taxes does not have the authority to order cause considerable frustration and fric- and run state and local institutions in the Federal government or units of tion. The bill attempts to minimize perpetuity (and I, for one, am not con- state or local governments to raise such friction by ensuring that a federal vinced such measures are every nec- taxes as a legal remedy. In 1990, in Mis- court complies with a number of safe- essary), then at least the courts that souri v. Jenkins, the Supreme Court guards before taking such a drastic ac- do so should be relatively responsive permitted a district court judge to tion. state courts, rather than unelected, order local authorities to impose a A second key provision in the bill ex- life-tenured federal judges. huge tax increase to pay for his plan to tends some of the protections included Before I close, let me mention a few desegregate a school district. in the Prison Litigation Reform Act to other provisions of the bill that are of One may wonder why a desegregation other state and local government insti- particular importance to me. First, the plan would be so expensive as to war- tutions. During the hearings, I heard bill contains a provision that makes it rant a massive tax increase. The reason over and over about the frustration of clear that the same standards for judg- is this plan was not simply an attempt state and local officials who are sad- ing the admissibility of confessions to bring schools up to basic standards. Rather, it was an elaborate social ex- dled with consent decrees entered into that Congress created for federal crimi- periment in the name of education. decades ago that allow unelected fed- nal trials should also apply when fed- Money was no object. Among other eral judges—rather than elected local eral courts engage in collateral review mandates, the plan called for 15 com- officials—to run local institutions. The of state and federal convictions. This puters in every classroom, a 2,000 bill addresses this problem by requiring provision reinforces that the touch- square-foot planetarium, a 25-acre the periodic reconsideration of such stone for admissibility should be the farm, a model United Nations, an art consent decrees or structural injunc- voluntariness of the confession and gallery, movie editing and screening tions to ensure that they remain nec- that a technical violation should not essary to remedy a constitutional vio- rooms, and swimming pools. free a convicted prisoner on collateral Money was no object because there lation. Once again, the bill recognizes review. was no control over the judge. There that our federal Constitution and fed- Second, the bill includes a provision was no accountability. The only super- eral system of government may require similar to one in legislation introduced vision was a higher court, and a slim federal courts to issue injunctions cov- by Senator SPECTER, which I have co- majority of the Supreme Court gave ering state and local institutions, but sponsored, which prevents a federal the judge a free reign. also acknowledges that such sweeping court from barring local authorities for The dissent in that case clearly ex- injunctions create friction with local ordering a retrial of a convicted au- plained what should have been obvious: officials. The best way to limit such thority. The traditional remedy in a it violates the Constitutional separa- friction is to provide a mechanism to habeas proceeding is release from cus- tion of powers for a judge to order that ensure that the injunctions remain tody. Taking the further step of bar- taxes be increased. In the Constitution, necessary to remedy a constitutional ring retrial goes beyond the traditional Article I contains the legislative pow- violation. This bill does that. office of the writ and is an affront to ers. Article I, Section 8 begins by stat- Another key provision of particular state courts and prosecutors. ing, ‘‘The Congress shall have the importance to my constituents back in Finally, the bill appropriately limits power to lay and collect taxes.’’ Article Missouri is the flat prohibition on fed- the practice of releasing prisoners III provides for judicial power, and eral court orders directly raising or im- early as a judicial remedy. Perhaps, makes no mention of the power to tax. posing taxes. The people of Kansas City the most poignant testimony in the Therefore, a Federal judge does not have suffered through the activism of Subcommittee hearings concerned fam- have the power to tax under the Con- federal District Judge Russell Clark, ily whose son, Danny Boyle, was killed stitution. including his order directly ordering by an arrested felon, who but for a pris- This is more than a matter of proper local authorities to increase taxes. on release order would have been be- Constitutional interpretation. It is an This provision directly attacks such ju- hind bars. Danny was a promising essential check on power. The ability dicial tyranny. Importantly, however, young police officer whose life and ca- to tax is an awesome power. It is true the bill leave the federal court’s power reer were cut short—a victim of judi- that, as Justice John Marshall once to order remedies that may lead a local cial activism. I am committed to work- wrote, ‘‘the power to tax involves the or state government to raise taxes. But ing to ensure that another family does power to destroy.’’ This authority must the ultimate decision of whether to not have to come before a future Sub- be carefully checked, and the best raise taxes, raise revenue through committee hearing with similar testi- source of control is the people. Thus, in other means or cut spending remains mony about a son or daughter. the Constitution, the ability to tax was that the local authorities. I want to thank Chairman HATCH and given to the legislative branch, which A final point should be made about Senator ABRAHAM for working with me is directly accountable to the people all three of these provisions: they to get these provisions included in the through the ballot box. apply only to federal courts. The proce- bill. I look forward to working with By design, the Judicial Branch is dif- dures and remedial authority of state them to ensure that this bill moves for- ferent. It is not responsible to the peo- courts remain unaffected. During the ward and that we take these modest ple. The Framers intentionally did not Subcommittee hearings a number of steps to improve the federal judiciary. provide for judges to be elected by the people offered suggestions to make the Mr. THURMOND. Mr. President, I people and even gave judges life tenure. federal courts more directly responsive rise today as an original cosponsor of They wanted judges to be insulated to the people. In attempting to im- the Judicial Improvement Act. This from the political climate and have the prove the federal courts, we cannot legislation contains various important freedom to interpret the law appro- lose sight of the fact that under our reforms of the judicial branch that will priately, rather than make decisions federal system we have both federal help keep the powers of the courts in based on the will of the majority at courts and state courts of general ju- check with the other branches of gov- any given moment. It is entirely rea- risdiction which are fully capable of ernment and with the will of the peo- sonable and appropriate that judicial hearing federal claims. State courts, ple. power does not include the power to moreover, are much more responsible This comprehensive bill contains pro- tax. As Justice Kennedy stated in his to the people—in the majority of visions that are important to many thoughtful dissent in Missouri v. Jen- States they are subject to direct elec- senators, and I am especially pleased kins, the Supreme Court’s ‘‘casual em- tions or retention elections. that two bills that I have introduced brace of taxation imposed by the This bill recognizes the comparative and advocated for years are included in unelected life-tenured Federal Judici- advantages of these two court systems this reform package. One would pro- ary disregards fundamental precepts S6196 CONGRESSIONAL RECORD — SENATE June 11, 1998 for the democratic control of public in- First, I think most colleagues would cedures are more readily accessible to stitutions.’’ agree that the STB has performed well small shippers. I also am proposing to The Framers of the Constitution since its inception in 1996. The indus- expand the Board’s authority with re- fully intended to separate power in this tries it regulates have experienced a gard to maintaining and promoting rail manner and did not mean for judges to number of significant changes in the competition in appropriate cir- be involved in taxation. As Alexander past few years. The STB has acted con- cumstances. And, I believe strongly Hamilton stated in the Federalist No. sistently with the authority Congress that we can do this without jeopardiz- 78, ‘‘The judiciary . . . has no influence gave it, and clearly within the deregu- ing the integrity of deregulation. over either the sword or the purse.’’ In latory intent with which it was cre- The Committee on Commerce, my view, judicial taxation is simply ated. Science, and Transportation has been taxation without representation, no This year’s reauthorization gives us working for many months on issues different from the complaints of the the first chance since we created the surrounding the rail service transpor- American colonists about taxation Board to review its practices and per- tation. In that effort, the reauthoriza- without representation during the days formance. My bill is based upon the tion of the Surface Transportation of the Stamp Act in 1765. principle that Congress sets govern- Board is a priority of our Committee. Mr. President, if a judge can order a ment policy and the Executive Branch, To date we have held four rail service tax increase for a school, why not a through regulators such as the STB, hearings during this Congress—three similar social experiment for a prison? executes that policy. During hearings field hearings along with a Subcommit- It is hard to imagine any limits on a in my Surface Transportation and Mer- tee hearing on the Board’s reauthoriza- Federal judge’s power as expressed in chant Marine Subcommittee, I have tion. In addition, at Senator MCCAIN’s Missouri v. Jenkins. I believe it is im- consistently sought to identify the lim- and my request, the STB held 2 days of perative that the Congress act to con- its of STB authority to act in certain hearings in April to address rail access trol the power of the judicial branch in circumstances, and to identify those and competition issues at which more this regard. areas beyond which STB action would than 60 witnesses testified. In response to the information gath- Another provision of the bill that I require a policy decision by Congress. ered during these many hearings both have long advocated would clarify the It is very important that we pass a by our Committee and the Board, retroactivity of legislation. Often the re-authorization bill this year. Doing today I am proposing legislation to ad- Congress will pass legislation but not that will require that we establish the dress a number of areas which I believe state whether that legislation should middle ground between those who want warrant serious attention and in some be applied retroactively to conduct to roll back the clock and begin to re- cases, reform. I expect some will have a that occurred before the law was regulate the industry and those who strong reaction to my proposals, as passed. An excellent example is the think the board needs no additional au- some in the rail industry have tended Civil Rights Act of 1991. It took years thority to adequately address the of litigation with decisions in over one to tar any legislative proposals affect- many issues before it. ing their industry as ‘‘re-regulation.’’ hundred Federal courts throughout the I believe my bill does just that. How- At the same time, I suspect some ship- country before the Supreme Court fi- ever, I stand ready to work with my per groups will report that these pro- nally decided the question. colleagues to further refine my propos- The provision simply states that leg- posals do not go nearly as far as they als to move this bill through the legis- islation is not retroactive unless the believe we should go. If so, that sounds lative process. I welcome input from bill expressly says it is. This simple like we’re at least within striking dis- any interested members. rule will eliminate a great deal of un- tance of the middle ground. My own personal view is that re-reg- certainty. As a result, it will reduce I want to briefly explain the major ulation is not called for. The Staggers litigation costs and help our judicial provisions of this legislation: Rail Act of 1980 has had very positive system better focus to reserve its lim- First, the bill establishes that pro- results for both industry and shippers. ited resources. moting competition within the rail in- This clarification should not be con- But we must ensure the board has suf- dustry is one of the criteria the STB troversial. The Judicial Conference of ficient tools to ensure that deregula- should use in performing its respon- the Federal courts indicated in a report tion has its intended effect of greater sibilities. in 1995 that it did not oppose this legis- competition and better value to the Second, the bill would extend the lative fix, and the Clinton Justice De- consumer. The experiences of the past time period covering the Board’s emer- partment stated in a letter to me in few years, and this year in particular, gency service orders. The current 270- 1996 that it did not object to this clari- give us much to consider. day emergency order authority would fication. I hope both of these provisions Mr. President, our country has en- be extended to cover a total period of are passed this year. dured a critical rail service crisis for 18 months. In the event an emergency The Judicial Improvement Act con- many, many months. My home State of remains in effect beyond this time tains many other needed reforms that I Texas has felt this crisis as much as frame, the Board would be permitted to will not attempt to detail, such as a re- any other State, and more than most. request and receive two 6-month exten- quirement for a three-judge panel to Texas has sustained billions of dollars sions of an emergency service order. enjoin the enforcement of certain laws. of economic losses as the goods bound The Congress could disapprove the I hope my colleagues will join me in to and from the State’s ports, factories Board’s requests and also take affirma- supporting the judicial reforms con- and refineries sit gridlocked on the tive action to grant any further exten- tained in this important legislation. rails. These service problems primarily sions as may be necessary. I yield the floor. have occurred in the West, but there Third, the bill includes several fea- has been a ripple effect throughout the tures to simplify the regulatory proc- By Mrs. HUTCHISON: entire rail system. Service problems ess involving small rate cases. During S. 2164. A bill to amend title 49, continue today, and I know the rail- every hearing before our Committee, United States Code, to promote rail roads have been working night and day shippers stressed their frustrations competition, and for other purposes; to to alleviate service troubles. that for a small shipper, it is simply the Committee on Commerce, Science, Mr. President, I will explain my bill too time consuming and costly to ever and Transportation. at greater length in a moment, but I bring a case to the Board. This bill THE STB AMENDMENTS OF 1998 want to stress that I have worked to seeks to acknowledge those concerns ∑ Mrs. HUTCHISON. Mr. President, craft a bill that maintains the basic de- and proposes to foreclose discovery in today I am introducing the Surface regulatory rules that the rail industry small rate cases, absent a demonstra- Transportation Board Amendments of and shippers have played by since the tion of compelling need. Further, it 1998. This legislation proposes to ex- 1980s. However, it is the shippers today would direct the Board to establish an pand the Surface Transportation who face a most challenging rail ship- arbitration mechanism for small ship- Board’s existing authority to address ping environment. per cases. It would not require manda- circumstances affecting rail service Therefore, I am proposing we take tory arbitration, but would allow for transportation in today’s environment. action to ensure that the Board’s pro- arbitration at one party’s request. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6197 Fourth, my bill seeks to address con- Board this year and provide important (1) CONSIDERATION OF APPROVAL RESOLU- cerns raised about the Board’s market policy guidance in regard to rail serv- TION.—After an approval resolution is intro- dominance standard. Some have advo- ice matters. duced, it is in order to move that the House cated Congress statutorily eliminate There being no objection, the bill was resolve into the Committee of the Whole House on the State of the Union for consider- product and geographic competition ordered to be printed in the RECORD, as ation of the resolution. All points of order from the Board’s market dominance follows: against the resolution and against consider- analysis as it is a very time consuming S. 2164 ation of the resolution are waived. The mo- process. Yet others contend these con- Be it enacted by the Senate and House of Rep- tion is highly privileged. A motion to recon- siderations remain necessary. My bill resentatives of the United States of America in sider the vote by which the motion is agreed recognizes the Board’s April 17th deci- Congress assembled, to or disagreed to shall not be in order. Dur- sion announcing it would initiate a SECTION 1. SHORT TITLE. ing consideration of the resolution in the Committee of the Whole, the first reading of proceeding to consider whether to This Act may be cited as the ‘‘Surface Transportation Board Amendments of 1998’’. the resolution shall be dispensed with. Gen- maintain, change, or eliminate product eral debate shall proceed, shall be confined and geographic competition from con- SEC. 2. PROMOTION OF COMPETITION WITHIN THE RAIL INDUSTRY. to the resolution, and shall not exceed one sideration in rate cases. I believe the Section 10101 of title 49, United States hour equally divided and controlled by a pro- Board’s action is the proper route to Code, is amended by— ponent and an opponent of the resolution. follow. (1) redesignating paragraphs (1) through (7) The resolution shall be considered as read for Fifth, my bill seeks to address an- as paragraphs (2) through (8); amendment under the five-minute rule. Only other area of concern raised by ship- (2) inserting before paragraph (2), as redes- one motion to rise shall be in order, except if offered by the manager. No amendment to pers: revenue adequacy. At the Board’s ignated, the following: ‘‘(1) to encourage and promote effective the resolution is in order. Consideration of April hearings, rail and shipper rep- competition within the rail industry;’’; the resolution shall not exceed one hour ex- resentatives suggested referring this (3) redesignating paragraphs (9) through cluding time for recorded votes and quorum matter of considerable debate to one or (16) as paragraphs (10) through (17); and calls. At the conclusion of the consideration more disinterested economists, which (4) inserting before paragraph (10), as re- of the resolution, the Committee shall rise the Board initiated April 17th. My bill designated, the following: and report the resolution to the House. The directs the Board to carry out its pro- ‘‘(9) to discourage artificial barriers to previous question shall be considered as or- interchange and car supply which can im- dered on the resolution to final passage with- posal in this area and direct rail and pede competition between shortline, re- out intervening motion. A motion to recon- shipper representatives to select a gional, and Class I carriers and block effec- sider the vote on passage of the resolution panel of 3 disinterested economists to tive rail service to shippers. shall not be in order. examine the Board’s current standards SEC. 3. EXTENSION OF TIME LIMIT ON EMER- (2) APPEALS OF RULINGS.—Appeals from de- for measuring revenue adequacy and to GENCY SERVICE ORDERS. cision of the Chair regarding application of consider whether alternative measure- Section 11123 of title 49, United States the rules of the House of Representatives to ments of a railroad’s financial health Code, is amended by— the procedure relating to an approval resolu- tion shall be decided without debate. are warranted. (1) striking ‘‘30’’ in subsection (a) and in- serting ‘‘60’’; (3) CONSIDERATION OF MORE THAN ONE AP- Sixth, my bill seeks to address the (2) striking ‘‘30’’ in subsection (c)(1) and in- PROVAL RESOLUTION.—It shall not be in order issue of bottleneck rates. There is con- serting ‘‘60’’; to consider under this subsection more than siderable debate as to the correct ap- (3) striking the second sentence of sub- one approval resolution under this section, proach in this area, with some strongly section (c)(1) and inserting the following: except for consideration of a similar Senate opposed to any change and others ‘‘An action taken by the Board under sub- resolution (unless the House has already re- equally adamant about total reform. section (a) of this section may not remain in jected an approval resolution) or more than one motion to discharge described in para- My proposal seeks to take a balanced effect longer than 18 months (including the initial 60-day period), unless the Board re- graph (1) with respect to an approval resolu- approach, ensuring some needed bound- quests an extension under paragraph (4).’’; tion. aries remain. It would require a carrier and (c) CONSIDERATION IN THE SENATE.— to provide a shipper with a rate for a (4) adding at the end of subsection (c) the (1) REFERRAL AND REPORTING.—An approval ‘‘bottleneck’’ line segment when re- following: resolution introduced in the Senate shall be quested to accommodate a transpor- ‘‘(4) The Board may request up to 2 exten- shall be placed directly and immediately on sions, of not more than 6 months each, of the the Calendar. tation contract. The railroad would be (2) IMPLEMENTING RESOLUTION FROM required to provide the shipper with a 18-month period under subsection (a) by sub- mitting to the Congress a request in writing HOUSE.—When the Senate receives from the rate over the ‘‘bottleneck’’ line seg- for such an extension, together with an ex- House of Representatives an approval resolu- ment as long as the interchange would planation of the reasons for the request. tion, the resolution shall not be referred to be operationally feasible and the Such a requested extension goes into effect committee and shall be placed on the Cal- through route would not significantly unless disapproved by the Congress by con- endar. (3) CONSIDERATION OF SINGLE APPROVAL RES- impair the railroad’s ability to serve current resolution. Any other extension re- OLUTION.—After the Senate has proceeded to quested by the Board will not go into effect its other shippers. the consideration of an approval resolution unless the Congress approve it under the pro- Finally, my bill would remove the 3- under this subsection, then no other ap- cedure established by section 4 of the Sur- year renewal requirement regarding proval resolution originating in that same face Transportation Amendments of 1998.’’. antitrust immunity applicable to House shall be subject to the procedures set household goods carriers. While the SEC. 4. APPROVAL PROCEDURE. forth in this subsection. (a) IN GENERAL.—Within 90 days (not (4) MOTION NONDEBATABLE.—A motion to continued propriety of collective ac- counting any day on which either House is tions by other types of motor carriers proceed to consideration of an approval reso- not in session) after a request for a third or lution under this subsection shall not be de- has been the subject of debate, no simi- subsequent extension is submitted to the batable. It shall not be in order to move to lar concerns have been voiced about House of Representatives and the Senate by reconsider the vote by which the motion to the collective activities of household the Surface Transportation Board under sec- proceed was adopted or rejected, although goods carriers. The repeal of the man- tion 11123(c)(4) of title 49, United States subsequent motions to proceed may be made datory review requirement would re- Code, an approval resolution shall be intro- under this paragraph. lieve the carriers of an unnecessary duced in the House by the Majority Leader of (5) LIMIT ON CONSIDERATION.— the House, for himself and the Minority regulatory burden, although it would (A) After no more than 2 hours of consider- Leader of the House, or by Members of the ation of an approval resolution, the Senate have no effect on the STB’s existing House designated by the Majority Leader shall proceed, without intervening action or authority to modify or revoke collec- and Minority Leader of the House; and shall debate (except as permitted under paragraph tive actions when the STB determines be introduced in the Senate by the Majority (9)), to vote on the final disposition thereof such action is necessary to protect the Leader of the Senate, for himself and the Mi- to the exclusion of all motions, except a mo- public interest. nority Leader of the Senate, or by Members tion to reconsider or table. Mr. President, I ask unanimous con- of the Senate designated by the Majority (B) The time for debate on the approval sent a copy of my bill be printed in the Leader and Minority Leader of the Senate. resolution shall be equally divided between The approval resolution shall be held at the the Majority Leader and the Minority Lead- RECORD. I encourage my colleagues to desk at the request of the Presiding Officers er or their designees. look at this legislation and begin work- of the respective Houses. (6) NO MOTION TO RECOMMIT.—A motion to ing with me now so that we may reau- (b) CONSIDERATION IN THE HOUSE OF REP- recommit an approval resolution shall not be thorize the Surface Transportation RESENTATIVES.— in order. S6198 CONGRESSIONAL RECORD — SENATE June 11, 1998

(7) DISPOSITION OF SENATE RESOLUTION.—If (c) LEGISLATIVE RELIEF.—The Board shall (1) IN GENERAL.—The simplified dispute the Senate has read for the third time an ap- notify the Committee on Commerce, resolution mechanism will utilize expedited proval resolution that originated in the Sen- Science, and Transportation of the Senate arbitration with a minimum of discovery and ate, then it shall be in order at any time and the Committee on Transportation and may be used to decide disputes between par- thereafter to move to proceed to the consid- Infrastructure of the House of Representa- ties involving any matter subject to the ju- eration of an approval resolution for the tives if the Board determines that additional risdiction of the Board, other than rate rea- same special message received from the changes in the rules and procedures de- sonableness cases that would be decided House of Representatives and placed on the scribed in subsection (b) are appropriate and under constrained market pricing principles. Calendar pursuant to paragraph (2), strike require commensurate changes in statutory (2) APPLICABLE STANDARDS.—Arbitrators all after the enacting clause, substitute the law. In making that notification, the Board will apply existing legal standards. text of the Senate approval resolution, agree shall make recommendations concerning (3) MANDATORY IF REQUESTED.—Use of the to the Senate amendment, and vote on final those changes. simplified dispute resolution mechanism is disposition of the House approval resolution, SEC. 6. MARKET DOMINANCE STANDARD. required whenever at least one party to the all without any intervening action or debate. The Surface Transportation Board shall dispute requests. (8) CONSIDERATION OF HOUSE MESSAGE.— complete a rulemaking, as outlined in STB (4) 90-DAY TURNAROUND.—Arbitrators will Consideration in the Senate of all motions, Ex Parte No. 575, to determine whether and issue their decisions within 90 days after amendments, or appeals necessary to dispose to what extent it should consider product being appointed. (5) PAYMENT OF COSTS.—Each party will of a message from the House of Representa- and geographic competition in making mar- pay its own costs, and the costs of the arbi- tives on an approval resolution shall be lim- ket dominance determinations. ited to not more than 1 hour. Debate on each trator and other administrative costs of ar- SEC. 7. REVENUE ADEQUACY. bitration will be shared equally between and motion or amendment shall be limited to 30 The Surface Transportation Board shall re- minutes. Debate on any appeal or point of among the parties. examine, as outlined in STB Ex Parte No. (6) DECISIONS PRIVATE; NOT PRECEDENTIAL.— order that is submitted in connection with 575, its standards and procedures for deter- the disposition of the House message shall be Except as otherwise provided by the Board, mining adequate railroad revenue levels decisions will remain private and will not limited to 15 minutes. Any time for debate under section 10704(a)(2) of title 49, United shall be equally divided and controlled by constitute binding precedent. States Code. In carrying out it reexamina- (7) DECISIONS BINDING AND ENFORCEABLE.— the proponent and the majority manager, tion, the Board is directed to seek rec- Except as otherwise provided in paragraph unless the majority manager is a proponent ommendations of a panel of three disin- (8), decisions will be binding and enforceable of the motion, amendment, appeal, or point terested economists on the proper standards by the Board. of order, in which case the minority manager to apply. The panel shall submit its report (8) RIGHT TO APPEAL.—Any party will have shall be in control of the time in opposition. and recommendations simultaneously to the an unqualified right to appeal any decision (d) DEFINITIONS.—For purposes of this sec- Surface Transportation Board and to the to the Board, in which case the Board will tion— Senate Committee on Commerce, Science, decide the matter de nova. In making its de- (1) APPROVAL RESOLUTION.—The term ‘‘ap- and Transportation and the House Commit- proval resolution’’ means only a concurrent cision, the Board may consider the decision tee on Transportation and Infrastructure. resolution of either House of Congress which of the arbitrator and any evidence and other is introduced as provided in subsection (a) SEC. 8. BOTTLENECK RATES. material developed during the arbitration. (9) MUTUAL MODIFICATION.—Any procedure with respect to the approval of a request (a) THROUGH ROUTES.—Section 10703 of title or regulation adopted by the Board with re- from the Surface Transportation Board 49, United States Code, is amended— spect to the simplified dispute resolution under section 11123(a)(4) of title 49, United (1) inserting ‘‘(a) IN GENERAL.—’’ before may be modified or eliminated by mutual States Code. ‘‘Rail carriers’’; and agreement of all parties to the dispute. (e) RULES OF HOUSE OF REPRESENTATIVES (2) adding at the end thereof the following: ‘‘(b) CONNECTING CARRIERS.—When a ship- SEC. 10. PROMOTION OF COMPETITIVE RAIL AND SENATE.—This section is enacted by the SERVICE OPTIONS. Congress— per and rail carrier enter into a contract (1) as an exercise of the rulemaking power under section 10709 for transportation that Section 11324 of title 49, United States of the House of Representatives and the Sen- would require a through route with a con- Code, is amended— (1) by striking ‘‘and’’ in paragraph (4) of ate, respectively, and as such they are necting carrier and there is no reasonable al- subsection (b); deemed a part of the rules of each House, re- ternative route that could be constructed without participation of that connecting car- (2) by striking ‘‘system.’’ in paragraph (5) spectively, but applicable only with respect of subsection (b) and inserting ‘‘system; to the procedure to be followed in that House rier, the connecting carrier shall, upon re- quest, establish a through route and a rate and’’; in the case of approval resolutions described (3) by adding at the end of subsection (b) in subsection (c); and they supersede other that can be used in conjunction with trans- portation provided pursuant to the contract, the following: rules only to the extent that they are incon- ‘‘(6) means and methods to encourage and sistent therewith; and unless the connecting carrier shows that— ‘‘(1) the interchange requested is not oper- expand competition between and among rail (2) with full recognition of the constitu- carriers in the affected region or the na- tional right of either House to change the ationally feasible; or ‘‘(2) the through route would significantly tional rail system.’’; and rules (so far as relating to the procedure of (4) by inserting after the second sentence that House) at any time, in the same manner impair the connecting carrier’s ability to serve its other traffic. in subsection (c) the following: ‘‘The Board and to the same extent as in the case of any may impose conditions to encourage and ex- other rule of that House. The connecting carrier shall establish a rate and through route within 21 days unless the pand competition between and among rail SEC. 5. PROCEDURAL RELIEF FOR SMALL RATE carriers in the affected region or the na- CASES. Board has made a determination that the connecting carrier is likely to prevail in its tional rail system, provided that such condi- (a) DISCOVERY LIMITED.—Section 10701(d) of tions do not cause substantial harm to the title 49, United States Code, is amended by— claim under paragraph (1) or (2).’’. (b) BOARD’S AUTHORITY TO PRESCRIBE DIVI- benefits of the transaction to the affected (1) inserting ‘‘(A)’’ in paragraph (3) before carriers or the public.’’. ‘‘The Board’’; and SION OF JOINT RATES.—Section 10705(b) of SEC. 11. HOUSEHOLD GOODS COLLECTIVE AC- (2) adding at the end thereof the following: title 49, United States Code, is amended by striking ‘‘The Board shall’’ and inserting TIVITIES. ‘‘(B) Unless the Board finds that there is a Section 13703(d) of title 49, United States compelling need to permit discovery in a ‘‘Except as provided in section 10703(b), the Board shall’’. Code, is amended by inserting ‘‘(other than particular proceeding, discovery shall not be an agreement affecting only the transpor- permitted in a proceeding handled under the (c) COMPLAINTS.—Section 11701 of title 49, United States Code, is amended— tation of household goods, as defined on De- guidelines established under subparagraph cember 31, 1995)’’ after ‘‘agreement’’ in the (A).’’. (1) by redesignating subsection (c) as sub- first sentence.∑ (b) ADMINISTRATIVE RELIEF.—Not later section (d); and than 180 days after the date of enactment of (2) by inserting after subsection (b) the fol- lowing: By Mr. GRASSLEY: this Act, the Surface Transportation Board S. 2165. A bill to amend title 31 of the shall— ‘‘(c) Where transportation over a portion of (1) review the rules and procedures applica- a through route is governed by a contract United States Code to improve meth- ble to rate complaints and other complaints under section 10709, a rate complaint must be ods for preventing financial crimes, filed with the Board by small shippers; limited to the rates that apply to the portion and for other purposes; to the Commit- (2) identify any such rules or procedures of the through route not governed by such a tee on Banking, Housing, and Urban that are unduly burdensome to small ship- contract.’’. Affairs. pers; and SEC. 9. SIMPLIFIED DISPUTE RESOLUTION. MONEY LAUNDERING DETERRENCE ACT OF 1998 (3) take such action, including rulemaking, Within 180 days after the date of enact- as is appropriate to reduce or eliminate the ment of this Act, the Surface Transportation ∑ Mr. GRASSLEY. Mr. President, re- aspects of the rules and procedures that the Board shall promulgate regulations adopting cently, we have seen the culmination Board determines under paragraph (2) to be a simplified dispute resolution mechanism of one of the most successful under- unduly burdensome to small shippers. with the following features: cover operations in history by the June 11, 1998 CONGRESSIONAL RECORD — SENATE S6199 United States Customs Service. This search, Nutrition, and General Legisla- There are also provisions in the bill effort, known as ‘‘Operation Casa- tion, and by Senator JOHNSON. In my to improve access to the Summer Food blanca,’’ has infiltrated and dismantled years serving on the Committee on Ag- Service Program by increasing the a group of international bankers, most- riculture, Nutrition, and Forestry, and number of sites and the number of chil- ly in Mexico, who have been laundering now as its Ranking Member, I have al- dren that can be served by non-profit drug money. The threat of drug traf- ways placed a very high value on the sponsors. Statistics continue to show ficking is serious enough. But to have child nutrition programs, including the that far fewer low income children are their financial advisors leading their Special Supplemental Nutrition Pro- served in the Summer Food Service effort to facilitate the smuggling of il- gram for Women, Infants and Children Program than during the school year licit narcotics is much worse. (WIC). These programs have been criti- in the National School Lunch Program, Complicit bankers devising schemes cal in helping to meet the nutritional especially in rural areas. The provi- can make it much easier to move and needs of millions of our nation’s chil- sions in this bill are designed to help hide the ill-gotten gains of drug car- dren. address this gap. tels. This bill is the first child nutrition The bill also reauthorizes the WIC As this latest law enforcement oper- reauthorization bill sent to Congress Program. Under Secretary Shirley ation illustrates, we must be sure that by an Administration in two decades. Watkins was absolutely correct when we are taking the necessary steps to It is a very commendable effort, with she said at a recent Agriculture Com- protect the citizens of our nation. We many positive features, that we will be mittee Hearing that, ‘‘WIC works.’’ No must prevent drug traffickers and or- relying upon substantially as we fash- other Federal-state program has the ganized crime groups from obtaining ion a child nutrition bill in the coming proven cost-effectiveness of WIC, which the profits of their illegal activities. weeks in the Senate Committee on Ag- has been shown in study after study. Much has been done and said about the riculture, Nutrition, and Forestry and This bill is designed to build upon the movement of illegal drugs into the ultimately in conference. In addition success of the current WIC program United States. But the opposite side of to reauthorizing those programs that with improvements in program man- the business does not always get the are expiring, the bill makes a number agement and integrity. publicity, and is just as important. We of improvements throughout the child While I support a very high propor- need to go after the profits from drug nutrition programs. It is designed to be tion of the provisions of this bill, I do sales and other illegal enterprises. cost-neutral over the next five years, not necessarily support every detail of Last week, Representative LEACH, to simplify and streamline program op- it. I will also mention some of the Chairman of the Committee on Bank- erations, to reduce impediments to par- areas in which I hope the final bill will ing and Financial Services introduced ticipation by eligible individuals, to take more substantial steps than are legislation to amend title 31, United reach certain children needing addi- included in this bill. In my view, more States Code. The bill H.R. 4005, ‘‘the tional nutritional assistance, to should be done to increase participa- Money Laundering Deterrence Act of strengthen program integrity and to tion in the School Breakfast Program, 1998,’’ would improve methods for pre- enhance the nutrition provided by the especially among low-income children, venting financial crimes. And as Oper- programs. and in the Summer Food Service Pro- ation Casablanca shows this legisla- Earlier this year, I joined Chairman gram. I would also prefer further tion, is timely and needed. We need to LUGAR, Senator MCCONNELL and Sen- strengthening of after-school and child tighten up our financial control capa- ator LEAHY in introducing a measure, care nutrition assistance. And addi- bilities to prevent criminal enterprises S. 1581, that would simply reauthorize tional steps should be taken to improve from abusing our financial and banking the child nutrition programs for the integrity and accountability in the systems. The bill is supported by the next five years. That bill was recog- WIC program while continuing the American Banking Association (ABA), nized as a starting point for a careful progress toward full participation. the Department of the Treasury, the review of the child nutrition programs I look forward to working with my Department of Justice and the Federal leading to the development of a sound, Congressional colleagues, the Adminis- Reserve. Today, Chairman LEACH’s bill well-crafted and bipartisan reauthor- tration and the entire child nutrition has already been marked up in the ization bill. I believe there is broad community, to design a final bill hav- House. support for improving and modifying ing broad bipartisan support. I call for my colleagues to help sup- these programs to meet changing needs I ask unanimous consent that the port this companion legislation. I hope and demands within the overall spend- text of the bill be printed in full in the this would be a continuation of efforts ing limitations that we are committed RECORD. by Congress to go after the growing to working within. There being no objection, the bill was threat of money laundering not only to One of the more important features ordered to be printed in the RECORD, as our nation, but worldwide.∑ of the bill is new authority for nutri- follows: tion assistance in after-school pro- S. 2166 By Mr. HARKIN (for himself, Mr. grams through the Child and Adult Be it enacted by the Senate and House of Rep- LEAHY AND MR. JOHNSON): Care Food Program for at risk youths S. 2166. A bill to amend the National resentatives of the United States of America in between the ages of 12 and 18. We know Congress assembled, School Lunch Act and the Child Nutri- too well that the hours just after SECTION 1. SHORT TITLE; TABLE OF CONTENTS. tion Act of 1966 to provide children school are full of opportunities for (a) SHORT TITLE.—This Act may be cited as with increased access to food and nu- teenagers to get into trouble, whether the ‘‘Child Nutrition and WIC Reauthoriza- trition assistance, to simplify program it involves crime, drug use or teen tion Amendments of 1998’’. operations and improve program man- pregnancy. The availability of nutri- (b) TABLE OF CONTENTS.—The table of con- agement, to extend certain authorities tion assistance can help to support or- tents of this Act is as follows: contained in such Acts through fiscal ganized after-school activities that are Sec. 1. Short title; table of contents. year 2002, and for other purposes; to the healthy and constructive alternatives TITLE I—SCHOOL LUNCH AND RELATED Committee on Agriculture, Nutrition, to what might otherwise occur in those PROGRAMS and Forestry. risky after-school hours. Sec. 101. Technical amendments to commod- CHILD NUTRITION AND WIC REAUTHORIZATION There are also provisions in the bill ity provisions. AMENDMENTS OF 1998 designed to improve the nutrition pro- Sec. 102. Availability of recovered funds for ∑ Mr. HARKIN. Mr. President, I am in- vided by the programs, including an management activity. troducing today, at the request of the emphasis on establishing adequate Sec. 103. Elimination of administration of Clinton Administration, the Child Nu- time for kids to eat school lunches in programs by regional offices. trition and WIC Reauthorization an atmosphere conducive to good nu- Sec. 104. Requirement for health and safety inspections. Amendments of 1998. I am grateful to trition and an authorization of Nutri- Sec. 105. Elimination of food and nutrition be joined in the introduction of this tion Education and Training grants projects and establishment of bill by Senator LEAHY, the Ranking based on $0.50 a child each year with a an adequate meal service pe- Member of the Subcommittee on Re- minimum of $75,000 per state. riod. S6200 CONGRESSIONAL RECORD — SENATE June 11, 1998 Sec. 106. Buy American. ‘‘SEC. 10. DISBURSEMENT TO SCHOOLS BY THE Act or the school breakfast program author- Sec. 107. Summer food service program for SECRETARY. ized under section 4 of the Child Nutrition children. ‘‘(a) AUTHORITY TO ADMINISTER PRO- Act of 1966 (42 U.S.C. 1773).’’. GRAMS Sec. 108. Commodity distribution program. .— SEC. 107. SUMMER FOOD SERVICE PROGRAM FOR Sec. 109. Child and adult care food program. ‘‘(1) IN GENERAL.—Except as provided in CHILDREN. Sec. 110. Transfer of homeless assistance paragraph (3), until September 30, 2000, the (a) ADJUSTMENTS TO REIMBURSEMENT programs to the child and adult Secretary shall withhold funds payable to a RATES.—Section 12 of the National School care food program. State agency under this Act and disburse the Lunch Act (42 U.S.C. 1760) is amended by Sec. 111. Elimination of pilot projects. funds directly to school food authorities, in- striking subsection (f) and inserting the fol- Sec. 112. Training and technical assistance. stitutions, and service institutions within lowing: Sec. 113. Food service management insti- the State for the purposes authorized by this ‘‘(f) ADJUSTMENTS TO REIMBURSEMENT tute. Act to the extent that the Secretary has so RATES.—In providing assistance for break- Sec. 114. Compliance and accountability. withheld and disbursed the funds continu- fasts, lunches, suppers, and supplements Sec. 115. Information clearinghouse. ously since October 1, 1980. served in Alaska, Hawaii, Guam, American Sec. 116. Refocusing of effort to help accom- ‘‘(2) USE OF FUNDS.—Any funds withheld Samoa, Puerto Rico, the Virgin Islands, and modate the special dietary and disbursed by the Secretary under para- the Commonwealth of the Northern Mariana needs of individuals with dis- graph (1) shall be used for the same purposes Islands, the Secretary may establish appro- abilities. and be subject to the same conditions as priate adjustments for each such State to TITLE II—SCHOOL BREAKFAST AND apply to disbursing funds made available to the national average payment rates pre- RELATED PROGRAMS States under this Act. scribed under sections 4, 11, 13 and 17 of this Sec. 201. Elimination of administration of ‘‘(3) STATE ADMINISTRATION.—If the Sec- Act and section 4 of the Child Nutrition Act programs by regional offices. retary is administering (in whole or in part) of 1966 (42 U.S.C. 1773) to reflect the dif- Sec. 202. State administrative expenses. any program authorized under this Act in a ferences between the costs of providing Sec. 203. Special supplemental nutrition State, the State may, on request to the Sec- meals in those States and the costs of pro- program for women, infants, retary, assume administrative responsibility viding meals in all other States.’’. and children. for the program at any time before October (b) ESTABLISHMENT OF SITE LIMITATION.— Sec. 204. Nutrition education and training. 1, 2000. Section 13(a)(7)(B) of the National School ‘‘(b) PROVISION OF TRAINING AND TECHNICAL TITLE III—COMMODITY DISTRIBUTION Lunch Act (42 U.S.C. 1761(a)(7)(B)) is amend- ASSISTANCE.—The Secretary shall provide a PROGRAMS ed by striking clause (i) and inserting the State agency that assumes administrative following: Sec. 301. Commodity distribution program responsibility for a program from the Sec- ‘‘(i) operate— reforms. retary on or before October 1, 2000, with ‘‘(I) not more than 25 sites, with not more Sec. 302. Food distribution. training and technical assistance to allow than 300 children being served at any 1 site; TITLE IV—EFFECTIVE DATE for an efficient and effective transfer of the or Sec. 401. Effective date. responsibility.’’. (c) CONFORMING AMENDMENT.—Section ‘‘(II) with a waiver granted by the State TITLE I—SCHOOL LUNCH AND RELATED 11(a)(1)(A) of the National School Lunch Act agency under standards developed by the PROGRAMS (42 U.S.C. 1759a(a)(1)(A)) is amended by strik- Secretary, with not more than 500 children SEC. 101. TECHNICAL AMENDMENTS TO COM- ing ‘‘Except as provided in section 10 of this being served at any 1 site;’’. MODITY PROVISIONS. Act, in’’ and inserting ‘‘In’’. (c) ELIMINATION OF INDICATION OF INTEREST (a) IN GENERAL.—Section 6 of the National SEC. 104. REQUIREMENT FOR HEALTH AND SAFE- REQUIREMENT, REMOVAL OF MEAL CONTRACT- School Lunch Act (42 U.S.C. 1755) is amend- TY INSPECTIONS. ING RESTRICTIONS, AND VENDOR REGISTRATION ed— Section 9 of the National School Lunch REQUIREMENTS.—Section 13 of the National (1) by striking subsections (c) and (d); and Act (42 U.S.C. 1758) is amended by adding at School Lunch Act (42 U.S.C. 1761) is amend- (2) by redesignating subsections (e), (f), and the end the following: ed— (g) as subsections (c), (d), and (e), respec- ‘‘(h) HEALTH AND SAFETY INSPECTIONS.—A (1) in subsection (a)(7)(B)— tively. school participating in the school lunch pro- (A) by striking clauses (ii) and (iii); and (b) CONFORMING AMENDMENTS.—The Na- gram authorized under this Act or the school (B) by redesignating clauses (iv) through tional School Lunch Act is amended by breakfast program authorized under section (vii) as clauses (ii) through (v) respectively; striking ‘‘section 6(e)’’ each place it appears 4 of the Child Nutrition Act of 1966 (42 U.S.C. and in sections 14(f), 16(a), and 17(h)(1)(B) (42 1773) in which meals are prepared on site (2) in subsection (l)— U.S.C. 1762a(f), 1765(a), 1766(h)(1)(B)) and in- shall, at least twice during each school year, (A) in paragraph (1)— serting ‘‘section 6(c)’’. obtain an inspection that indicates that food (i) in the first sentence— SEC. 102. AVAILABILITY OF RECOVERED FUNDS service operations of the school meet State (I) by striking ‘‘(other than private non- FOR MANAGEMENT ACTIVITY. and local health and safety standards.’’. profit organizations eligible under sub- Section 8 of the National School Lunch SEC. 105. ELIMINATION OF FOOD AND NUTRITION section (a)(7))’’; and Act (42 U.S.C. 1757) is amended by adding at PROJECTS AND ESTABLISHMENT OF (II) by striking ‘‘only with food service AN ADEQUATE MEAL SERVICE PE- the end the following: management companies registered with the RIOD. State in which they operate’’ and inserting ‘‘(h) RETENTION AND USE OF RECOVERED Section 12 of the National School Lunch PROGRAM FUNDS.— ‘‘with food service management companies’’; Act (42 U.S.C. 1760) is amended by striking and ‘‘(1) RETENTION.—A State agency may re- subsection (m) and inserting the following: (ii) by striking the last sentence; tain up to 50 percent of any program funds ‘‘(m) LENGTH OF MEAL SERVICE PERIOD AND (B) in paragraph (2)— recovered as a result of an audit or review FOOD SERVICE ENVIRONMENT.—A school par- conducted by the State agency of school food ticipating in the school lunch program au- (i) in the first sentence, by striking ‘‘shall’’ authorities, institutions, and service institu- thorized under this Act or the school break- and inserting ‘‘may’’; and tions participating in food assistance pro- fast program authorized under section 4 of (ii) by striking the second and third sen- grams authorized under this Act or section 3 the Child Nutrition Act of 1966 (42 U.S.C. tences; or 4 of the Child Nutrition Act of 1966 (42 1773) shall, to the maximum extent prac- (C) by striking paragraph (3); and U.S.C. 1772, 1773). ticable, establish meal service periods that (D) by redesignating paragraphs (4) and (5) ‘‘(2) USE.—Funds retained by a State agen- provide children with adequate time to fully as paragraphs (3) and (4), respectively. cy under this subsection shall be used by the consume their meals in an environment that (d) REAUTHORIZATION OF SUMMER FOOD State agency for allowable program costs to is conducive to eating the meals.’’. SERVICE PROGRAM.—Section 13(q) of the Na- tional School Lunch Act (42 U.S.C. 1761(q)) is improve the management and operation of SEC. 106. BUY AMERICAN. programs described in paragraph (1) within Section 12 of the National School Lunch amended by striking ‘‘1998’’ and inserting the State, including the cost of providing Act (42 U.S.C. 1760) (as amended by section ‘‘2002’’. funds to school food authorities, institu- 105) is amended by adding at the end the fol- SEC. 108. COMMODITY DISTRIBUTION PROGRAM. tions, and service institutions participating lowing: Section 14(a) of the National School Lunch in the programs.’’. ‘‘(n) BUY AMERICAN.— Act (42 U.S.C. 1762a(a)) is amended by strik- SEC. 103. ELIMINATION OF ADMINISTRATION OF ‘‘(1) IN GENERAL.—The Secretary shall re- ing ‘‘1998’’ and inserting ‘‘2002’’. PROGRAMS BY REGIONAL OFFICES. quire that a school purchase, to the maxi- SEC. 109. CHILD AND ADULT CARE FOOD PRO- (a) MATCHING REQUIREMENT.—Section 7(b) mum extent practicable, food products that GRAM. of the National School Lunch Act (42 U.S.C. are produced in the United States. (a) REVISION TO LICENSING AND ALTERNATE 1756(b)) is amended by striking the second ‘‘(2) LIMITATIONS.—Paragraph (1) shall APPROVAL FOR SCHOOLS AND OUTSIDE SCHOOL sentence. apply only to— HOURS CHILD CARE CENTERS.—Section 17(a) (b) DISBURSEMENT TO SCHOOLS BY THE SEC- ‘‘(A) a school located in the contiguous of the National School Lunch Act (42 U.S.C. RETARY.—Section 10 of the National School United States; and 1766(a)) is amended in the fifth sentence by Lunch Act (42 U.S.C. 1759) is amended to read ‘‘(B) a purchase of a food product for the striking paragraph (1) and inserting the fol- as follows: school lunch program authorized under this lowing: June 11, 1998 CONGRESSIONAL RECORD — SENATE S6201

‘‘(1) each institution (other than a school (e) ELIMINATION OF AUDIT FUNDS, ESTAB- ‘‘(ii) the maximum State income eligibility or family or group day care home sponsoring LISHMENT OF MANAGEMENT SUPPORT FUNDING, standards, according to family size, for the organization) and family or group day care PARTICIPATION BY AT-RISK CHILD CARE PRO- program; and home shall— GRAMS, AND WIC OUTREACH.—Section 17 of ‘‘(iii) information concerning how benefits ‘‘(A)(i) have Federal, State, or local licens- the National School Lunch Act (42 U.S.C. under the program may be obtained; ing or approval; or 1766) is amended— ‘‘(B) is provided updates of the information ‘‘(ii) be complying with appropriate re- (1) by striking subsection (i); described in subparagraph (A) at least annu- newal procedures as prescribed by the Sec- (2) by redesignating subsections (j) through ally; and retary and not be the subject of information (p) as subsections (i) through (o), respec- ‘‘(C) provides the information described in possessed by the State indicating that the li- tively; and subparagraph (A) to parents of enrolled chil- cense of the institution or home will not be (3) by adding at the end the following: dren at least annually.’’. renewed; ‘‘(p) MANAGEMENT FUNDING.— (f) PERMANENT AUTHORIZATION OF DEM- ‘‘(B) in any case in which Federal, State, ‘‘(1) TECHNICAL AND TRAINING ASSISTANCE.— ONSTRATION PROJECT.—Section 17(o) of the or local licensing or approval is not avail- In addition to the normal training and tech- National School Lunch Act (42 U.S.C. 1766(o)) able— nical assistance provided to State agencies (as redesignated by subsection (e)) is amend- ‘‘(i) receive funds under title XX of the So- under this section, the Secretary shall pro- ed by striking paragraphs (4) and (5). cial Security Act (42 U.S.C. 1397 et seq.); vide training and technical assistance in ‘‘(ii) meet any alternate approval stand- order to assist the State agencies in improv- SEC. 110. TRANSFER OF HOMELESS ASSISTANCE ards established by a State or local govern- PROGRAMS TO THE CHILD AND ing their program management and over- ADULT CARE FOOD PROGRAM. ment; or sight under this section. ‘‘(iii) meet any alternate approval stand- ‘‘(2) FUNDING.—For fiscal year 1999 and (a) SUMMER FOOD SERVICE PROGRAM FOR ards established by the Secretary, after con- each succeeding fiscal year, the Secretary CHILDREN.—Section 13(a)(3)(C) of the Na- tional School Lunch Act (42 U.S.C. sultation with the Secretary of Health and shall reserve to carry out paragraph (1) 1⁄8 of Human Services; or 1 percent of the amount made available to 1761(a)(3)(C)) is amended— ‘‘(C) in any case in which the institution carry out this section. (1) in clause (i), by inserting ‘‘or’’ after the semicolon; provides care to school children outside ‘‘(q) AT-RISK CHILD CARE.— (2) by striking clause (ii); and school hours and Federal, State, or local li- ‘‘(1) DEFINITION OF AT-RISK SCHOOL CHILD.— censing or approval is not required, meet In this subsection, the term ‘at-risk school (3) by redesignating clause (iii) as clause State or local health and safety standards; child’ means a child who— (ii). and’’. ‘‘(A) is not less than 12 nor more than 18 (b) CHILD AND ADULT CARE FOOD PRO- (b) REINSTATEMENT OF CATEGORICAL ELIGI- years of age; and GRAM.—Section 17 of the National School BILITY FOR EVEN START PROGRAM PARTICI- ‘‘(B) lives in a geographical area served by Lunch Act (as amended by section 109(e)) is PANTS.—Section 17(c)(6)(B) of the National a school enrolling elementary students in amended— School Lunch Act (42 U.S.C. 1766(c)(6)(B)) is which at least 50 percent of the total number (1) in the third sentence of subsection (a)— amended by striking ‘‘1997’’ and inserting of children enrolled are certified as eligible (A) by striking ‘‘and public’’ and inserting ‘‘2002’’. ‘‘public’’; and (c) TAX EXEMPT STATUS AND REMOVAL OF to receive free or reduced price school meals (B) by inserting before the period at the NOTIFICATION REQUIREMENT FOR INCOMPLETE under this Act or the Child Nutrition Act of following: ‘‘, and emergency shelters de- APPLICATIONS.—Section 17(d)(1) of the Na- 1966 (42 U.S.C. 1771 et seq.). tional School Lunch Act (42 U.S.C. 1766(d)(1)) ‘‘(2) PARTICIPATION IN CHILD AND ADULT scribed in subsection (s)’’; and is amended— CARE FOOD PROGRAM.—Subject to the other (2) by adding at the end the following: (1) by inserting after the third sentence the provisions of this subsection, an institution ‘‘(s) PARTICIPATION BY EMERGENCY SHEL- following: ‘‘An institution moving toward that provides care to at-risk school children TERS.— compliance with the requirement for tax ex- during after-school hours, weekends, or holi- ‘‘(1) DEFINITION OF EMERGENCY SHELTER.— empt status shall be allowed to participate days during the regular school year may par- In this subsection, the term ‘emergency shel- in the child and adult care food program for ticipate in the program authorized under ter’ means a public or private nonprofit a period of not more than 180 days, except this section. emergency shelter (as defined in section 321 that a State agency may grant a single ex- ‘‘(3) ADMINISTRATION.—Except as otherwise of the Stewart B. McKinney Homeless As- tension of not to exceed an additional 90 provided in this subsection, the other provi- sistance Act (42 U.S.C. 11351)), or a site oper- days if the institution demonstrates, to the sions of this section apply to an institution ated by the shelter, that provides food serv- satisfaction of the State agency, that the in- described in paragraph (2). ice to homeless children and their parents or ability of the institution to obtain tax ex- ‘‘(4) SUPPLEMENT REIMBURSEMENT.— guardians. empt status within the 180-day period is due ‘‘(A) LIMITATIONS.—An institution may ‘‘(2) ADMINISTRATION.—Except as otherwise to circumstances beyond the control of the claim reimbursement under this subsection provided in this subsection, the other provi- institution.’’; and only for— sions of this section shall apply to an emer- (2) by striking the last sentence. ‘‘(i) a supplement served to at-risk school gency shelter that is participating in the (d) DISTRIBUTION OF PROGRAM INFORMA- children during after-school hours, week- program authorized under this section. TION.—Section 17(k) of the National School ends, or holidays during the regular school ‘‘(3) INSTITUTION AND SITE LICENSING.—Sub- Lunch Act (42 U.S.C. 1766(k)) is amended— year; and section (a)(1) shall not apply to an emer- (1) by striking ‘‘A State’’ and inserting the ‘‘(ii) 1 supplement per child per day. gency shelter. following: ‘‘(B) RATE.—A supplement shall be reim- ‘‘(4) HEALTH AND SAFETY STANDARDS.—To ‘‘(1) IN GENERAL.—A State’’; and bursed under this subsection at the rate es- be eligible to participate in the program au- (2) by adding at the end the following: tablished for a free supplement under sub- thorized under this section, an emergency ‘‘(2) DISTRIBUTION OF PROGRAM INFORMA- section (c)(3). shelter shall comply with applicable State TION.— ‘‘(C) NO CHARGE.—A supplement claimed and local health and safety standards. ‘‘(A) DEFINITION OF NEEDY AREA.—In this for reimbursement under this subsection ‘‘(5) MEAL REIMBURSEMENT.— paragraph, the term ‘needy area’ means a ge- shall be served without charge. ‘‘(A) LIMITATIONS.—An emergency shelter ographic area served by a school enrolling el- ‘‘(r) INFORMATION CONCERNING THE SPECIAL may claim reimbursement under this sub- ementary students in which at least 50 per- SUPPLEMENTAL NUTRITION PROGRAM FOR section only for— cent of the total number of children enrolled WOMEN, INFANTS, AND CHILDREN.— ‘‘(i) a meal served to children who are not are certified as eligible to receive free or re- ‘‘(1) IN GENERAL.—The Secretary shall pro- more than 12 years of age residing at the duced price school meals under this Act or vide each State agency administering a child emergency shelter; and the Child Nutrition Act of 1966 (42 U.S.C. 1771 and adult care food program under this sec- ‘‘(ii) not more than 3 meals, or 2 meals and et seq.). tion with information concerning the special 1 supplement, per child per day. ‘‘(B) INFORMATION.—At least once every 2 supplemental nutrition program for women, ‘‘(B) RATE.—A meal shall be reimbursed years, each State agency shall provide noti- infants, and children authorized under sec- under this subsection at the rate established fication of the availability of the program, tion 17 of the Child Nutrition Act of 1966 (42 for a free meal under subsection (c). the requirements for program participation, U.S.C. 1786). ‘‘(C) NO CHARGE.—A meal claimed for reim- and the application procedures to be fol- ‘‘(2) REQUIREMENTS FOR STATE AGENCIES.—A bursement under this subsection shall be lowed under the program to each nonpartici- State agency shall ensure that each partici- served without charge.’’. pating institution or family or group day pating child care center (other than an insti- (c) HOMELESS CHILDREN NUTRITION PRO- care home that— tution providing care to school children out- GRAM.—Section 17B of the National School ‘‘(i) is located in a needy area within the side school hours)— Lunch Act (42 U.S.C. 1766b) is repealed. State; and ‘‘(A) receives materials that include— ‘‘(ii)(I) has received Federal, State, or local ‘‘(i) a basic explanation of the importance SEC. 111. ELIMINATION OF PILOT PROJECTS. licensing or approval; or and benefits of the special supplemental nu- Section 18 of the National School Lunch ‘‘(II) receives funds under title XX of the trition program for women, infants, and chil- Act (42 U.S.C. 1769) is amended by striking Social Security Act (42 U.S.C. 1397 et seq.).’’. dren; subsections (e) through (i). S6202 CONGRESSIONAL RECORD — SENATE June 11, 1998

SEC. 112. TRAINING AND TECHNICAL ASSIST- TITLE II—SCHOOL BREAKFAST AND ‘‘(D) INCOME DOCUMENTATION.—An appli- ANCE. RELATED PROGRAMS cant shall provide documentation of house- Section 21(e)(1) of the National School SEC. 201. ELIMINATION OF ADMINISTRATION OF hold income, or of participation in a program Lunch Act (42 U.S.C. 1769b–1(e)(1)) is amend- PROGRAMS BY REGIONAL OFFICES. described in clause (ii) or (iii) of paragraph ed by striking ‘‘1998’’ and inserting ‘‘2002’’. Section 5 of the Child Nutrition Act of 1966 (2)(A), at certification to be determined to (42 U.S.C. 1774) is amended to read as follows: meet income eligibility requirements for the SEC. 113. FOOD SERVICE MANAGEMENT INSTI- program. TUTE. ‘‘SEC. 5 DISBURSEMENT TO SCHOOLS BY THE ‘‘(E) VERIFICATION.—The Secretary shall Section 21(e)(2)(A) of the National School SECRETARY. ‘‘(a) AUTHORITY TO ADMINISTER PRO- issue regulations under this subsection pre- Lunch Act (42 U.S.C. 1769b–1(e)(2)(A)) is scribing when and how verification of income amended by striking ‘‘and $2,000,000 for fiscal GRAMS.— ‘‘(1) IN GENERAL.—Except as provided in shall be required.’’. year 1996’’ and inserting ‘‘$2,000,000 for each (b) DISTRIBUTION OF NUTRITION EDUCATION paragraph (3), until September 30, 2000, the of fiscal years 1996 through 1998, and MATERIALS.—Section 17(e)(3) of the Child Nu- Secretary shall withhold funds payable to a $3,000,000 for fiscal year 1999’’. trition Act of 1966 (42 U.S.C. 1786(e)(3)) is State agency under this Act and disburse the amended— SEC. 114. COMPLIANCE AND ACCOUNTABILITY. funds directly to school food authorities, in- (1) by striking ‘‘(3) The’’ and inserting the stitutions, and service institutions within Section 22(d) of the National School Lunch following: the State for the purposes authorized by this Act (42 U.S.C. 1769c(d)) is amended by strik- ‘‘(3) NUTRITION EDUCATION MATERIALS.— Act to the extent that the Secretary has so ing ‘‘1996’’ and inserting ‘‘2002’’. ‘‘(A) IN GENERAL.—The’’; and withheld and disbursed the funds continu- SEC. 115. INFORMATION CLEARINGHOUSE. (2) by adding at the end the following: ously since October 1, 1980. Section 26 of the National School Lunch ‘‘(B) SHARING OF MATERIALS WITH CSFP.— ‘‘(2) USE OF FUNDS.—Any funds withheld The Secretary may provide, in bulk quan- Act (42 U.S.C. 1769g) is amended— and disbursed by the Secretary under para- (1) in the first sentence of subsection (a), tity, nutrition education materials (includ- graph (1) shall be used for the same purposes ing materials promoting breastfeeding) de- by striking ‘‘shall’’ and inserting ‘‘may’’; and be subject to the same conditions as (2) in subsection (b), by striking ‘‘The’’ and veloped with funds made available for the apply to disbursing funds made available to program authorized under this section to inserting ‘‘Except as provided in subsection States under this Act. (d), the’’; and State agencies administering the commodity ‘‘(3) STATE ADMINISTRATION.—If the Sec- supplemental food program authorized under (3) by striking subsection (d) and inserting retary is administering (in whole or in part) sections 4(a) and 5 of the Agriculture and the following: any program authorized under this Act in a Consumer Protection Act of 1973 (Public Law ‘‘(d) NONCOMPETITIVE CONTRACTS.—Not- State, the State may, on request to the Sec- 93–86; 7 U.S.C. 612c note) at no cost to that withstanding any other provision of law, the retary, assume administrative responsibility program.’’. Secretary may, on a noncompetitive basis, for the program at any time before October (c) REAUTHORIZATION OF PROGRAM.—Sec- enter into a contract for the services of any 1, 2000. tion 17 of the Child Nutrition Act of 1966 (42 organization with which the Secretary has ‘‘(b) PROVISION OF TRAINING AND TECHNICAL U.S.C. 1786) is amended in subsections (g)(1) previously entered into a contract under this ASSISTANCE.—The Secretary shall provide a and (h)(2)(A) by striking ‘‘1998’’ each place it section, if the organization has performed State agency that assumes administrative appears and inserting ‘‘2002’’. satisfactorily under the contract and meets responsibility for a program from the Sec- (d) INFANT FORMULA PROCUREMENT.—Sec- the requirements of this section. retary on or before October 1, 2000, with tion 17(h)(8)(A) of the Child Nutrition Act of ‘‘(e) FUNDING.—The Secretary may provide training and technical assistance to allow 1966 (42 U.S.C. 1786(h)(8)(A)) is amended by to the organization selected under this sec- for an efficient and effective transfer of ad- adding at the end the following: tion an amount not to exceed $150,000 for ministrative responsibility.’’. ‘‘(iii) COMPETITIVE BIDDING SYSTEM.—A each of fiscal years 1999 through 2002.’’. SEC. 202. STATE ADMINISTRATIVE EXPENSES. State agency using a competitive bidding system for infant formula shall award a con- SEC. 116. REFOCUSING OF EFFORT TO HELP AC- (a) HOMELESS SHELTERS.—Section 7(a)(5) of the Child Nutrition Act of 1966 (42 U.S.C. tract to the bidder offering the lowest net COMMODATE THE SPECIAL DIETARY price unless the State agency demonstrates NEEDS OF INDIVIDUALS WITH DIS- 1776(a)(5)) is amended by striking subpara- ABILITIES. graph (B) and inserting the following: to the satisfaction of the Secretary that the ‘‘(B) REALLOCATION OF FUNDS.— weighted average retail price for different Section 27 of the National School Lunch brands of infant formula in the State does Act (42 U.S.C. 1769h) is amended to read as ‘‘(i) RETURN TO SECRETARY.—For each fis- cal year, any amounts appropriated that are not vary by more than 5 percent.’’. follows: (e) INFRASTRUCTURE AND BREASTFEEDING not obligated or expended during the fiscal SUPPORT AND PROMOTION.—Section ‘‘SEC. 27. ACCOMMODATION OF SPECIAL DIETARY year and are not carried over for the suc- 17(h)(10)(A) of the Child Nutrition Act of 1966 NEEDS OF INDIVIDUALS WITH DIS- ceeding fiscal year under subparagraph (A) ABILITIES. (42 U.S.C. 1786(h)(10)(A)) is amended by strik- shall be returned to the Secretary. ing ‘‘1998’’ and inserting ‘‘2002’’. ‘‘(a) DEFINITIONS.—In this section: ‘‘(ii) REALLOCATION BY SECRETARY.—The ‘‘(1) COVERED PROGRAM.—The term ‘covered (f) SPEND-FORWARD AUTHORITY.—Section Secretary shall allocate, for purposes of ad- 17(i)(3) of the Child Nutrition Act of 1966 (42 program’ means— ministrative costs, any remaining amounts ‘‘(A) the school lunch program authorized U.S.C. 1786(i)(3)) is amended— among States that demonstrate a need for (1) in subparagraph (A)— under this Act; the amounts.’’. ‘‘(B) the school breakfast program author- (A) in clause (i), by striking ‘‘and’’ at the (b) ELIMINATION OF TRANSFER LIMITATION.— end; ized under section 4 of the Child Nutrition Section 7(a) of the Child Nutrition Act of (B) in clause (ii)— Act of 1966 (42 U.S.C. 1773); and 1966 (42 U.S.C. 1776(a)) is amended by striking (i) by inserting ‘‘nutrition services and ad- ‘‘(C) any other program authorized under paragraph (6) and inserting the following: ministration’’ after ‘‘amount of’’; and this Act or the Child Nutrition Act of 1966 ‘‘(6) USE OF ADMINISTRATIVE FUNDS.—Funds (ii) by striking the period at the end and (except section 17 of that Act) that the Sec- available to a State under this subsection inserting ‘‘; and’’; and retary determines is appropriate. and under section 13(k)(1) of the National (C) by adding at the end the following: ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible School Lunch Act (42 U.S.C. 1761(k)(1)) may ‘‘(iii) with the prior approval of the Sec- entity’ means a school food authority, insti- be used by the State for the costs of adminis- retary, not more than 4 percent of the tution, or service institution that partici- tration of the programs authorized under the amount of funds allocated to a State agency pates in a covered program. National School Lunch Act (42 U.S.C. 1751 et for nutrition services and administration for ‘‘(3) INDIVIDUALS WITH DISABILITIES.—The seq.) or this Act (except for the programs au- a fiscal year under this section may be ex- term ‘individual with disabilities’ has the thorized under sections 17 and 21 of this Act) pended by the State agency during the subse- meaning given the term in section 7 of the without regard to the basis on which the quent fiscal year for the costs of developing Rehabilitation Act of 1973 (29 U.S.C. 706) for funds were earned and allocated.’’. electronic benefit transfer.’’; purposes of title VII of that Act (29 U.S.C. 796 (c) REAUTHORIZATION OF PROGRAM.—Sec- (2) in subparagraph (B), by striking ‘‘sub- et seq.). tion 7(g) of the Child Nutrition Act of 1966 (42 paragraph (A)(ii)’’ and inserting ‘‘clauses (ii) ‘‘(b) ACTIVITIES.—The Secretary may carry U.S.C. 1776(g)) is amended by striking ‘‘1998’’ and (iii) of subparagraph (A)’’; out activities to help accommodate the spe- and inserting ‘‘2002’’. (3) by striking subparagraphs (D) through cial dietary needs of individuals with disabil- SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION (G); and ities who are participating in a covered pro- PROGRAM FOR WOMEN, INFANTS, (4) by redesignating subparagraph (H) as gram, including— AND CHILDREN. subparagraph (D). ‘‘(1) developing and disseminating to State (a) ADDITIONAL PROGRAM APPLICATION RE- (g) FARMERS MARKET NUTRITION PRO- agencies guidance and technical assistance QUIREMENTS.—Section 17(d)(3) of the Child GRAM.— materials; Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is (1) MATCHING FUNDS REQUIREMENT.—Sec- ‘‘(2) conducting training of State agencies amended by adding at the end the following: tion 17(m)(3) of the Child Nutrition Act of and eligible entities; and ‘‘(C) PHYSICAL PRESENCE.—An applicant 1966 (42 U.S.C. 1786(m)(3)) is amended by ‘‘(3) issuing grants to State agencies and shall be physically present at each certifi- striking ‘‘total’’ each place it appears and in- eligible entities.’’. cation visit to receive program benefits. serting ‘‘administrative’’. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6203

(2) RANKING CRITERIA FOR STATE PLANS.— carry out this section for each of fiscal years ‘‘SEC. 9. AUTHORITY TO RESOLVE CLAIMS. Section 17(m)(6) of the Child Nutrition Act of 1997 through 2002.’’; and ‘‘(a) IN GENERAL.—The Secretary may de- 1966 (42 U.S.C. 1786(m)(6)) is amended— (2) by redesignating paragraphs (4) and (5) termine the amount of, settle, and adjust all (A) by striking subparagraph (F); and as paragraphs (2) and (3), respectively. or part of a claim arising under a domestic (B) by redesignating subparagraph (G) as TITLE III—COMMODITY DISTRIBUTION food assistance program administered by the subparagraph (F). PROGRAMS Secretary. (3) FUNDING.—Section 17(m)(9)(A) of the ‘‘(b) WAIVERS.—The Secretary may waive a SEC. 301. COMMODITY DISTRIBUTION PROGRAM claim described in subsection (a) if the Sec- Child Nutrition Act of 1966 (42 U.S.C. REFORMS. retary determines that a waiver would serve 1786(m)(9)(A)) is amended by striking ‘‘1998’’ (a) COMMODITY SPECIFICATIONS.—Section the purposes of the program. and inserting ‘‘2002’’. 3(a) of the Commodity Distribution Reform ‘‘(c) AUTHORITY OF THE ATTORNEY GEN- (h) DISQUALIFICATION OF CERTAIN VEN- Act and WIC Amendments of 1987 (Public ERAL.—Nothing in this section diminishes DORS.— Law 100–237; 7 U.S.C. 612c note) is amended the authority of the Attorney General under (1) IN GENERAL.—Section 17 of the Child by striking paragraph (2) and inserting the section 516 of title 28, United States Code, or Nutrition Act of 1996 (42 U.S.C. 1786) is following: any other provision of law, to supervise and amended by adding at the end the following: ‘‘(2) APPLICABILITY.—Paragraph (1) shall conduct litigation on behalf of the United ‘‘(o) DISQUALIFICATION OF VENDORS CON- apply to— States. VICTED OF TRAFFICKING OR ILLEGAL SALES.— ‘‘(A) the commodity supplemental food ‘‘SEC. 10. PAYMENT OF COSTS ASSOCIATED WITH ‘‘(1) IN GENERAL.—Except as provided in program authorized under sections 4(a) and 5 MANAGEMENT OF COMMODITIES paragraph (4), a State agency shall perma- of the Agriculture and Consumer Protection THAT POSE A HEALTH OR SAFETY nently disqualify from participation in the Act of 1973 (Public Law 93–86; 7 U.S.C. 612c HAZARD. program authorized under this section a ven- note); ‘‘(a) IN GENERAL.—The Secretary may use dor convicted of— ‘‘(B) the food distribution program on In- funds available to carry out section 32 of the ‘‘(A) trafficking in food instruments (in- dian reservations authorized under section Act of August 24, 1935 (49 Stat. 774, chapter cluding any voucher, draft, check, or access 4(b) of the Food Stamp Act of 1977 (7 U.S.C. 641; 7 U.S.C. 612c), that are not otherwise device (including an electronic benefit trans- 2013(b)); and committed, for the purpose of reimbursing fer card or personal identification number) ‘‘(C) the school lunch program authorized States for State and local costs associated issued in lieu of a food instrument under this under the National School Lunch Act (42 with commodities distributed under any do- section); or U.S.C. 1751 et seq.).’’. mestic food assistance program administered ‘‘(B) selling firearms, ammunition, explo- (b) CUSTOMER ACCEPTABILITY INFORMA- by the Secretary if the Secretary determines sives, or controlled substances (as defined in TION.—Section 3(f) of the Commodity Dis- that the commodities pose a health or safety section 102 of the Controlled Substances Act tribution Reform Act and WIC Amendments hazard. (21 U.S.C. 802)) in exchange for food instru- of 1987 (Public Law 100–237; 7 U.S.C. 612c ‘‘(b) ALLOWABLE COSTS.—The costs— ments. note) is amended by striking paragraph (2) ‘‘(1) may include costs for storage, trans- ‘‘(2) NOTICE OF DISQUALIFICATION.—The and inserting the following: portation, processing, and destruction of the State agency shall— ‘‘(2) CUSTOMER ACCEPTABILITY INFORMA- hazardous commodities; and ‘‘(A) provide the vendor with notification TION.— ‘‘(2) shall be subject to the approval of the of the disqualification; and ‘‘(A) IN GENERAL.—The Secretary shall en- Secretary. ‘‘(B) make the disqualification effective on sure that information with respect to the ‘‘(c) REPLACEMENT COMMODITIES.— the date of receipt of the notice of disquali- types and forms of commodities that are ‘‘(1) IN GENERAL.—The Secretary may use fication. most useful is collected from recipient agen- funds described in subsection (a) for the pur- ‘‘(3) PROHIBITION OF RECEIPT OF LOST REVE- cies participating in programs described in pose of purchasing additional commodities if NUES.—A vendor shall not be entitled to re- subsection (a)(2). the purchase will expedite replacement of ceive any compensation for revenues lost as ‘‘(B) FREQUENCY.—The information shall be the hazardous commodities. a result of disqualification under this sub- collected at least once every 2 years. ‘‘(2) RECOVERY.—Use of funds under para- section. ‘‘(C) ADDITIONAL SUBMISSIONS.—The Sec- graph (1) shall not restrict the Secretary ‘‘(4) HARDSHIP EXCEPTION IN LIEU OF DIS- retary— from recovering funds or services from a sup- QUALIFICATION.— ‘‘(i) may require submission of information plier or other entity regarding the hazardous ‘‘(A) IN GENERAL.— A State agency may described in subparagraph (A) from recipient commodities. permit a vendor that, but for this paragraph, agencies participating in other domestic ‘‘(d) CREDITING OF RECOVERED FUNDS.— would be disqualified under paragraph (1), to food assistance programs administered by Funds recovered from a supplier or other en- continue to redeem food instruments or oth- the Secretary; and tity regarding the hazardous commodities erwise provide supplemental foods to partici- ‘‘(ii) shall provide the recipient agencies a shall— pants if the State agency determines, in its means for voluntarily submitting customer ‘‘(1) be credited to the account available to sole discretion according to criteria estab- acceptability information.’’. carry out section 32 of the Act of August 24, lished by the Secretary, that disqualification SEC. 302. FOOD DISTRIBUTION. 1935 (49 Stat. 774, chapter 641; 7 U.S.C. 612c), of the vendor would cause hardship to par- (a) IN GENERAL.—Sections 8 through 12 of to the extent the funds represent expendi- ticipants in the program authorized under the Commodity Distribution Reform Act and tures from that account under subsections this section. WIC Amendments of 1987 (Public Law 100–237; (a) and (c); and ‘‘(B) CIVIL MONEY PENALTY.—If a State 7 U.S.C. 612c note) are amended to read as ‘‘(2) remain available to carry out the pur- agency authorizes a vendor that, but for this follows: poses of section 32 of that Act until ex- paragraph, would be disqualified to redeem ‘‘SEC. 8. AUTHORITY TO TRANSFER COMMOD- pended. food instruments or provide supplemental ITIES BETWEEN PROGRAMS. ‘‘SEC. 11. AUTHORITY TO ACCEPT COMMODITIES foods under subparagraph (A), the State ‘‘(a) TRANSFER.—Subject to subsection (b), DONATED BY FEDERAL SOURCES. agency shall assess the vendor a civil money the Secretary may transfer any commodities ‘‘(a) IN GENERAL.—The Secretary may ac- penalty in lieu of disqualification. purchased for a domestic food assistance pro- cept donations of commodities from any ‘‘(C) AMOUNT.—The State agency shall de- gram administered by the Secretary to any Federal agency, including commodities of termine the amount of the civil penalty ac- other domestic food assistance program ad- another Federal agency determined to be ex- cording to criteria established by the Sec- ministered by the Secretary if the transfer is cess personal property pursuant to section retary.’’. necessary to ensure that the commodities 202(d) of the Federal Property and Adminis- will be used while the commodities are still trative Services Act of 1949 (40 U.S.C. 483(d)). (2) REGULATIONS.—The amendment made suitable for human consumption. ‘‘(b) USE.—The Secretary may donate the by paragraph (1) shall take effect on the date ‘‘(b) REIMBURSEMENT.—The Secretary commodities received under subsection (a) to on which the Secretary of Agriculture issues shall, to the maximum extent practicable, States for distribution through any domestic a final regulation that includes the criteria provide reimbursement for the value of the food assistance program administered by the for— commodities transferred under subsection Secretary. (A) making hardship determinations; and (a) from accounts available for the purchase ‘‘(c) PAYMENT.—Notwithstanding section (B) determining the amount of a civil of commodities under the program receiving 202(d) of the Federal Property and Adminis- money penalty in lieu of disqualification. the commodities. trative Services Act of 1949 (40 U.S.C. 483(d)), SEC. 204. NUTRITION EDUCATION AND TRAINING. ‘‘(c) CREDITING.—Any reimbursement made the Secretary shall not be required to make Section 19(i) of the Child Nutrition Act of under subsection (b) shall— any payment in connection with the com- 1966 (42 U.S.C. 1788(i)) is amended— ‘‘(1) be credited to the accounts that in- modities received under subsection (a).’’. (1) by striking the subsection heading and curred the costs when the transferred com- (b) EFFECT ON PRIOR AMENDMENTS.—The all that follows through paragraph (3)(A) and modities were originally purchased; and amendment made by subsection (a) does not inserting the following: ‘‘(2) be available for the purchase of com- affect the amendments made by sections 8 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— modities with the same limitations as are through 12 of the Commodity Distribution ‘‘(1) IN GENERAL.— provided for appropriated funds for the reim- Reform Act and WIC Amendments of 1987 ‘‘(A) FUNDING.—There are authorized to be bursed accounts for the fiscal year in which (Public Law 100–237; 7 U.S.C. 612c note), as in appropriated such sums as are necessary to the transfer takes place. effect on September 30, 1998. S6204 CONGRESSIONAL RECORD — SENATE June 11, 1998 TITLE IV—EFFECTIVE DATE By and large, the IG community has the problems become more difficult to SEC. 401. EFFECTIVE DATE. done an outstanding job. They have solve. Except as provided in section 203(h)(2), this made thousands of recommendations to The Inspectors General have made Act and the amendments made by this Act Congress, ultimately saving taxpayers valuable contributions to the efficient take effect on October 1, 1998.∑ literally billions of dollars. Investiga- operation of the federal government, By Ms. COLLINS (for herself and tions by Inspectors General have also but their record is not without blem- ish. For example, this successful record Mr. GRASSLEY): resulted in the recovery of billions of S. 2167. A bill to amend the Inspector dollars from companies and individuals was recently tarnished by the activi- General Act of 1978 (5 U.S.C. App.) to who defrauded the federal government. ties of the Treasury Department’s Of- increase the efficiency and account- These investigations have been the fice of Inspector General. After an ex- ability of Offices of Inspector General basis for thousands of criminal pros- tensive investigation, my Subcommit- within Federal departments, and for ecutions, debarments, exclusions and tee found that this office violated fed- other purposes; to the Committee on suspensions. eral laws in the award of two sole- Governmental Affairs. The Inspectors General have a dem- source contracts, which wasted thou- INSPECTOR GENERAL ACT AMENDMENTS OF 1998 onstrated record of success over the sands of dollars. It was disturbing to Ms. COLLINS. Mr. President, since past 20 years, but as with any govern- find that this one Inspector General’s coming to the Senate and assuming the ment program, we must be vigilant to Office was itself guilty of wasting re- Chairmanship of the Permanent Sub- ensure that the program is well man- sources—the very office charged with committee on Investigations, one of aged, accountable, and effective. With preventing fraud and abuse. At the con- my top priorities has been the seem- this goal in mind and drawing on my clusion of that investigation, the Sub- ingly never-ending fight to ferret out work with the Inspectors General over committee asked the question: who is and eliminate waste, fraud and abuse the past year and a half, I am introduc- watching the watchdogs? in federal government programs. We’ve ing the ‘‘Inspector General Act Amend- Let me stress that, in my view, prob- all heard the horror stories of $500 ments of 1998,’’ a bill to improve the lems like the ones in the Treasury In- hammers and roads built to nowhere. accountability and efficiency of the In- spector General’s office are not wide- The waste of scarce federal resources spectors General program. I am pleased spread in the Inspector General com- not only picks the pockets of the tax- to have my colleague from Iowa, Sen- munity. However, an Inspector General payers but also places severe financial ator GRASSLEY, as a cosponsor. is not like any other government man- pressures on already overburdened pro- The bill is designed to increase the ager. Inspectors General are the very grams, forcing cutbacks in the delivery accountability and independence of In- officials in government responsible for of vital government services. spectors General. It establishes a re- combating waste, fraud and abuse in Over the past year, I have seen this newable nine-year term of office for Federal programs. And as such, Inspec- waste first-hand as the Subcommittee each of the 26 Inspectors General who tors General should be held to a higher put a spotlight on massive fraud in the are appointed by the President and standard. To do their job effectively, Medicare program. To cite just one ex- confirmed by the Senate. This provi- Inspectors General must be above re- ample, the Subcommittee’s investiga- sion will also encourage Inspectors proach, must set an example for other tion revealed that the federal govern- General to serve for longer periods of government managers to follow, and ment had been sending Medicare time so that their experience and judg- must not create situations where there checks to 14 health care companies ment can be used to fight waste, fraud is even the appearance of impropriety. whose address, if they had existed, was and abuse. Credibility and effectiveness are lost in the middle of the runway of the This bill also takes steps to stream- when the office charged with combat- Miami International Airport. That line the IG Offices themselves—making ing waste and abuse engages in the fraud cost the taxpayers millions of them more efficient and flexible—by kind of activity that the Inspector dollars, diverting scarce resources from consolidating existing offices and by General is responsible for deterring. the elderly and legitimate health care reducing the volume of the inspectors To increase accountability, my bill providers. general reporting requirements. requires independent external reviews This example and others like it were The number of OIGs has increased of the Inspector General offices every uncovered by my Subcommittee work- more than four-fold in twenty years, three years. It gives each office the ing hand-in-hand with the Inspector and many of these are small offices flexibility to choose the most efficient General’s Office, whose mission is to with just a handful of employees. These method of review, but it does require identify the eliminate waste, fraud and small OIGs can be made far more effi- that the watchdogs themselves submit abuse in federal programs. In many cient and effective by transferring to oversight by a qualified third party. ways, the Inspectors General are the their functions to larger, department- This provision will help ensure public eyes and ears of the Permanent Sub- wide IG offices. For example, my bill confidence in the management and effi- committee on Investigations, in par- consolidates the current stand-alone ciency of the IG offices. ticular, and the Congress, in general, office of the Peace Corps, with just 15 Finally, Mr. President, one provision as we strive to detect and prevent employees, into the State Depart- that is not included in this bill, but waste, fraud, abuse, and mismanage- ment—eliminating unnecessary over- that deserves careful consideration, is ment in federal programs. head and bureaucracy but continuing the grant of statutory law enforcement Mr. President, this year marks the thorough audit and oversight of the authority for the Inspector General of 20th anniversary of the Inspector Gen- Peace Corps. Under this proposal, seven the Department of Health and Human eral Act, the law that the Congress existing small IG offices are consoli- Services. The Medicare fraud investiga- passed to create these guardians of the dated into the IG offices of major de- tion conducted by my Subcommittee public purse. As we recognize this anni- partments. revealed the dangers faced by HHS–IG versary, it is important for Congress to Currently, Offices of Inspectors Gen- Special Agents when they work with take a close look at the IG system. eral are required by law to provide the FBI and others to investigate some During the past 20 years, the Inspec- semi-annual reports to Congress. My cases of health care fraud. These tor General community has grown bill would increase the value of the re- agents work side by side with other from 12 in 1978 to 57 Inspectors General port process by reducing the require- federal law enforcement professionals, today. These offices receive more than ment to a single annual report and and the Congress should carefully ex- $1 billion in annual funding and employ streamlining the information required amine the best way to provide them over 10,000 auditors, criminal investiga- for each report. For example, the new with tools necessary for them to do tors, and support personnel. The Office reporting requirement would require their jobs effectively. of Inspector General is charged with the IGs to identify areas within their Mr. President, the bill I introduce tremendous responsibilities and is jurisdiction which are at highest risk today represents the first step in the given considerable authority to un- for waste, fraud and abuse. In that way, process to improve the effectiveness, cover waste and abuse within the gov- the Congress can attack those weak efficiency and accountability of the In- ernment. areas before they get worse and before spector General program. These offices June 11, 1998 CONGRESSIONAL RECORD — SENATE S6205 provide valuable assistance to the Con- S. 1413 [Mr. GRAMS] was added as a cosponsor gress so that we can exercise our duty At the request of Mr. LUGAR, the of S. 2078, a bill to amend the Internal to oversee the operation of the federal names of the Senator from North Da- Revenue Code of 1986 to provide for government and to make sure that the kota [Mr. CONRAD] and the Senator Farm and Ranch Risk Management Ac- taxpayer’s money is well spent and not from Virginia [Mr. WARNER] were added counts, and for other purposes. wasted. I urge my colleagues to join me as cosponsors of S. 1413, a bill to pro- S. 2110 in this effort to strengthen and im- vide a framework for consideration by At the request of Mr. BIDEN, the prove the Inspectors General program the legislative and executive branches names of the Senator from Nevada [Mr. into the next century. of unilateral economic sanctions. REID] and the Senator from Hawaii S. 1464 [Mr. AKAKA] were added as cosponsors By Mr. INOUYE: At the request of Mr. HATCH, the of S. 2110, a bill to authorize the Fed- S.J. Res. 53. A joint resolution to ex- name of the Senator from New Jersey eral programs to prevent violence press the sense of the Congress that the [Mr. TORRICELLI] was added as a co- against women, and for other purposes. President should award a Presidential sponsor of S. 1464, a bill to amend the Unit Citation to the final crew of the S. 2116 Internal Revenue Code of 1986 to per- U.S.S. Indianapolis, which was sunk on At the request of Mr. LUGAR, the manently extend the research credit, July 30, 1945; to the Committee on name of the Senator from Wisconsin and for other purposes. Armed Services. [Mr. FEINGOLD] was added as a cospon- ∑ Mr. INOUYE. Mr. President, today I S. 1606 sor of S. 2116, a bill to clarify and en- am introducing a joint resolution At the request of Mr. WELLSTONE, the hance the authorities of the Chief In- which calls upon the President to name of the Senator from Connecticut formation Officer of the Department of award a Presidential Unit Citation to [Mr. DODD] was added as a cosponsor of Agriculture. the final crew of the U.S.S. Indianapolis S. 1606, a bill to fully implement the S. 2118 (CA–35) that recognizes the courage, Convention Against Torture and Other At the request of Mr. CHAFEE, the fortitude and heroism displayed by the Cruel, Inhuman, or Degrading Treat- name of the Senator from New York crew in the face of tremendous hard- ment or Punishment and to provide a [Mr. D’AMATO] was added as a cospon- ship and adversity after their ship was comprehensive program of support for sor of S. 2118, a bill to amend the Inter- torpedoed and sunk on July 30, 1945.∑ victims of torture. nal Revenue Code of 1986 to reduce the f S. 1647 tax on vaccines to 25 cents per dose. At the request of Mr. BAUCUS, the ADDITIONAL COSPONSORS S. 2128 name of the Senator from Louisiana At the request of Mr. STEVENS, the S. 38 [Mr. BREAUX] was added as a cosponsor names of the Senator from Minnesota At the request of Mr. FEINGOLD, the of S. 1647, a bill to reauthorize and [Mr. GRAMS] and the Senator from Ne- name of the Senator from Arizona [Mr. make reforms to programs authorized braska [Mr. HAGEL] were added as co- KYL] was added as a cosponsor of S. 38, by the Public Works and Economic De- sponsors of S. 2128, a bill to clarify the a bill to reduce the number of execu- velopment Act of 1965. authority of the Director of the Fed- tive branch political appointees. S. 1924 eral Bureau of Investigation regarding S. 263 At the request of Mr. MACK, the name the collection of fees to process certain At the request of Mr. MCCONNELL, of the Senator from Oklahoma [Mr. identification records and name the name of the Senator from North NICKLES] was added as a cosponsor of S. checks, and for other purposes. Carolina [Mr. HELMS] was added as a 1924, a bill to restore the standards S. 2144 cosponsor of S. 263, a bill to prohibit used for determining whether technical the import, export, sale, purchase, pos- At the request of Mr. COVERDELL, the workers are not employees as in effect name of the Senator from Ohio [Mr. session, transportation, acquisition, before the Tax Reform Act of 1986. and receipt of bear viscera or products DEWINE] was added as a cosponsor of S. S. 1981 that contain or claim to contain bear 2144, a bill to amend the Fair Labor At the request of Mr. HUTCHINSON, viscera, and for other purposes. Standards Act of 1938 to exempt from the name of the Senator from Okla- the minimum wage recordkeeping and S. 644 homa [Mr. INHOFE] was added as a co- overtime compensation requirements At the request of Mr. D’AMATO, the sponsor of S. 1981, a bill to preserve the certain specialized employees. name of the Senator from South Caro- balance of rights between employers, S. 2150 lina [Mr. HOLLINGS] was added as a co- employees, and labor organizations sponsor of S. 644, a bill to amend the At the request of Mr. FRIST, the which is fundamental to our system of Public Health Service Act and the Em- names of the Senator from Washington collective bargaining while preserving ployee Retirement Income Security [Mrs. MURRAY], the Senator from New the rights of workers to organize, or Act of 1974 to establish standards for Mexico [Mr. BINGAMAN], and the Sen- otherwise engage in concerted activi- relationships between group health ator from Kentucky [Mr. MCCONNELL] ties protected under the National plans and health insurance issuers with were added as cosponsors of S. 2150, a Labor Relations Act. enrollees, health professionals, and bill to amend the Public Health Serv- providers. S. 2030 ice Act to revise and extend the bone S. 852 At the request of Mr. BUMPERS, the marrow donor program, and for other At the request of Mr. LOTT, the name of the Senator from South Caro- purposes. names of the Senator from Nebraska lina [Mr. HOLLINGS] was added as a co- S. 2151 [Mr. KERREY] and the Senator from sponsor of S. 2030, a bill to amend the At the request of Mr. NICKLES, the Oklahoma [Mr. INHOFE] were added as Federal Rules of Civil Procedure, relat- name of the Senator from Connecticut cosponsors of S. 852, a bill to establish ing to counsel for witnesses in grand [Mr. LIEBERMAN] was added as a co- nationally uniform requirements re- jury proceedings, and for other pur- sponsor of S. 2151, a bill to clarify Fed- garding the titling and registration of poses. eral law to prohibit the dispensing or salvage, nonrepairable, and rebuilt ve- S. 2049 distribution of a controlled substance hicles. At the request of Mr. KERREY, the for the purpose of causing, or assisting S. 1252 names of the Senator from Florida [Mr. in causing, the suicide, euthanasia, or At the request of Mr. GRAHAM, the GRAHAM] and the Senator from Florida mercy killing of any individual. name of the Senator from Hawaii [Mr. [Mr. MACK] were added as cosponsors of SENATE CONCURRENT RESOLUTION 82 INOUYE] was added as a cosponsor of S. S. 2049, a bill to provide for payments At the request of Mr. WELLSTONE, the 1252, a bill to amend the Internal Reve- to children’s hospitals that operate names of the Senator from New York nue Code of 1986 to increase the graduate medical education programs. [Mr. MOYNIHAN] and the Senator from amount of low-income housing credits S. 2078 Wisconsin [Mr. FEINGOLD] were added which may be allocated in each State, At the request of Mr. GRASSLEY, the as cosponsors of Senate Concurrent and to index such amount for inflation. name of the Senator from Minnesota Resolution 82, a concurrent resolution S6206 CONGRESSIONAL RECORD — SENATE June 11, 1998 expressing the sense of Congress con- Whereas, when it appears that evidence (i) STREAMLINED ELIGIBILITY PROCEDURES.— cerning the worldwide trafficking of under the control or in the possession of the (I) IN GENERAL.—The State uses stream- persons, that has a disproportionate Senate may promote the administration of lined procedures described in subclause (II) impact on women and girls, and is con- justice, the Senate will take such action as for determining the eligibility for medical will promote the ends of justice consistently demned by the international commu- assistance of, and enrollment in the State with the privileges of the Senate: Now, plan under title XIX of the Social Security nity as a violation of fundamental therefore, be it human rights. Act (42 U.S.C. 1396 et seq.) of— Resolved That Senator Dale Bumpers, (aa) children in families with incomes that SENATE RESOLUTION 189 Galen Fountain, and any other employee do not exceed the effective income level (ex- from whom testimony or document produc- At the request of Mr. TORRICELLI, the pressed as a percent of the poverty line) that tion may be required, are authorized to tes- names of the Senator from Minnesota has been specified under such State plan (in- [Mr. WELLSTONE] and the Senator from tify and to produce documents in the case of United States v. Jack L. Williams, et al., except cluding under a waiver authorized by the South Carolina [Mr. HOLLINGS] were when Senator Bumpers’ attendance at the Secretary or under section 1902(r)(2) of such added as cosponsors of Senate Resolu- Senate is necessary for the performance of Act (42 U.S.C. 1396a(r)(2))) for the child to be tion 189, a resolution honoring the his legislative duties, and except concerning eligible for medical assistance under section 150th anniversary of the United States matters for which a privilege should be as- 1902(l)(2) or 1905(n)(2) (as selected by a State) Women’s Rights Movement that was serted of such Act (42 U.S.C. 1396a(l)(2), 1396d(n)(2)) initiated by the 1848 Women’s Rights SEC. 2. That the Senate Legal Counsel is for the age of such child; and Convention held in Seneca Falls, New authorized to represent Senator Bumpers, (bb) children determined eligible for such York, and calling for a national cele- Galen Fountain, and any other employee of assistance, and enrolled in the State plan bration of women’s rights in 1998. the Senate, in connection with testimony under title XIX of the Social Security Act, and document production in United States v. in accordance with the requirements of para- SENATE RESOLUTION 192 Jack L. Williams, et al. graphs (1) and (2) of section 1931(b) of such At the request of Mr. BIDEN, the f Act (42 U.S.C. 1396u–1(b)). name of the Senator from South Caro- (II) PROCEDURES DESCRIBED.—The stream- lina [Mr. THURMOND] was added as a co- AMENDMENTS SUBMITTED lined procedures described in this subclause sponsor of Senate Resolution 192, a res- include— olution expressing the sense of the Sen- (aa) using shortened and simplified appli- ate that institutions of higher edu- NATIONAL TOBACCO POLICY AND cations for the children described in sub- cation should carry out activities to YOUTH SMOKING REDUCTION ACT clause (I); change the culture of alcohol consump- (bb) eliminating the assets test for deter- tion on college campuses. mining the eligibility of such children; and KERRY (AND OTHERS) (cc) allowing applications for such children SENATE RESOLUTION 235 AMENDMENT NO. 2689 to be submitted by mail or telephone. At the request of Mr. AKAKA, the (ii) CONTINUOUS ELIGIBILITY FOR CHIL- names of the Senator from Idaho [Mr. Mr. KERRY (for himself, Mr. BOND, Mr. CHAFEE, Mr. KENNEDY, Mr. DODD, DREN.—The State provides (or demonstrates KEMPTHORNE], the Senator from Ala- to the satisfaction of the Secretary that, not Mr. WELLSTONE, Mr. JOHNSON, Mrs. bama [Mr. SESSIONS], and the Senator later than fiscal year 2001, the State shall BOXER, Mr. SPECTER, Ms. LANDRIEU, from Massachusetts [Mr. KERRY] were provide) for 12-months of continuous eligi- added as cosponsors of Senate Resolu- Mr. DURBIN, Mr. GRAHAM, Mr. BINGA- bility for children in accordance with section tion 235, a resolution commemorating MAN, and Mr. KOHL) proposed an 1902(e)(12) of the Social Security Act (42 100 years of relations between the peo- amendment to the bill (S. 1415) to re- U.S.C. 1396a(e)(12)). ple of the United States and the people form and restructure the process by (iii) PRESUMPTIVE ELIGIBILITY FOR CHIL- of the Philippines. which tobacco products are manufac- DREN.—The State provides (or demonstrates to the satisfaction of the Secretary that, not f tured, marketed, and distributed, to prevent the use of tobacco products by later than fiscal year 2001, the State shall SENATE RESOLUTION 247—AU- minors, to redress the adverse health provide) for making medical assistance THORIZING TESTIMONY, DOCU- effects of tobacco use, and for other available to children during a presumptive MENT PRODUCTION, AND REP- purposes; as follows: eligibility period in accordance with section RESENTATION OF MEMBER AND 1920A of the Social Security Act (42 U.S.C. At the end, add the following: 1396r–1a). EMPLOYEES OF THE SENATE ( ) ASSISTANCE FOR CHILDREN.—A State (iv) OUTSTATIONING AND ALTERNATIVE AP- shall use not less than 50 percent of the Mr. LOTT (for himself and Mr. PLICATIONS.—The State complies with the re- amount described in subsection (b)(2) of sec- DASCHLE) submitted the following reso- quirements of section 1902(a)(55) of the So- tion 452 for each fiscal year to carry out ac- lution; which was considered and tivities under the Child Care and Develop- cial Security Act (42 U.S.C. 1396a(a)(55)) (re- agreed to: ment Block Grant Act of 1990 (42 U.S.C. 9858 lating to outstationing of eligibility workers S. RES. 247 et seq.) for the receipt and initial processing of ap- Whereas, in the case of United States v. Jack plications for medical assistance and the use of alternative application forms). L. Williams, et al., Criminal Case No. 96–0314, TORRICELLI (AND WELLSTONE) (v) SIMPLIFIED VERIFICATION OF ELIGIBILITY pending in the United States District Court AMENDMENT NO. 2690 for the District of Columbia, a trial subpoena REQUIREMENTS.—The State demonstrates to has been served upon Galen Fountain, an em- (Ordered to lie on the table.) the satisfaction of the Secretary that the ployee of the Senate on the staff of the Com- Mr. TORRICELLI (for himself and State uses only the minimum level of ver- mittee on Appropriations, and testimony Mr. WELLSTONE) submitted an amend- ification requirements as are necessary for may be requested from Senator Dale Bump- ment intended to be proposed by them the State to ensure accurate eligibility de- ers. to the bill, S. 1415, supra; as follows: terminations under the State plan under Whereas, pursuant to sections 703(a) and title XIX of the Social Security Act (42 704(a)(2) of the Ethics in Government Act of On page 201, between lines 19 and 20, insert U.S.C. 1396 et seq.). the following: 1978, 2 U.S.C. § § 288b(a) and 288c(a)(2), the (C) REPORT ON NUMBER OF ENROLLMENTS RE- (3) MEDICAID CHILDREN’S ENROLLMENT PER- Senate may direct its counsel to represent SULTING FROM OUTREACH.—A State shall an- FORMANCE BONUS.— Members and employees of the Senate with nually report to the Secretary on the num- (A) SET ASIDE OF FUNDS.—Notwithstanding respect to any subpoena, order, or request ber of full year equivalent children that are for testimony relating to their official re- the preceding paragraphs of this subsection, 15 percent of the amount received under this determined to be eligible for medical assist- sponsibilities; ance under the State plan under title XIX of Whereas, by the privileges of the Senate of section in a fiscal year shall not be used by the Social Security Act and are enrolled the United States and Rule XI of the Stand- a State unless the State satisfies the re- ing Rules of the Senate, no evidence under quirements of subparagraphs (B) and (C). under the plan as a result of— the control or in the possession of the Senate (B) DEMONSTRATION OF IMPLEMENTATION OF (i) having been provided presumptive eligi- may, by the judicial process, be taken from OUTREACH STRATEGIES.—A State shall dem- bility in accordance with section 1920A of such control or possession but by permission onstrate to the satisfaction of the Secretary such Act (42 U.S.C. 1396r–1a); of the Senate; that the State has a commitment to reach (ii) having submitted an application for Whereas, by Rule XI of the Standing Rules and enroll children who are eligible for but such assistance through an outstationed eli- of the Senate, no Senator shall absent him- not enrolled under the State plan through ef- gibility worker; and self from the service of the Senate without fective implementation of each of the follow- (iii) having submitted an application for leave; ing outreach activities: such assistance by mail or telephone. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6207

(D) PROCEDURE FOR REDISTRIBUTION OF UN- where tobacco is produced pursuant to a to- resents the obligation of the Federal Govern- USED SET ASIDES.—The Secretary shall deter- bacco farm marketing quota or farm acreage ment to provide payments to States and eli- mine an appropriate procedure for the redis- allotment established under the Agricultural gible persons in accordance with this title. tribution of funds set aside under this para- Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) Subtitle B—Tobacco Market Transition graph for a State for a fiscal year that are for any of the 1995, 1996, or 1997 crop years; Assistance not used by the State during that fiscal year and SEC. 1021. PAYMENTS FOR LOST TOBACCO because the State did not satisfy the require- (B) is not a quota holder or quota lessee. QUOTA. ments of subparagraphs (B) and (C) to States (5) SECRETARY.—The term ‘‘Secretary’’ (a) IN GENERAL.—Beginning with the 1999 that have satisfied such requirements for means— marketing year, the Secretary shall make such fiscal year and have fully expended the (A) in subtitles A and B, the Secretary of payments for lost tobacco quota to eligible amount of State funds so set aside. Agriculture; and quota holders, quota lessees, and quota ten- (E) APPLICATION OF RESTRICTION ON SUBSTI- (B) in section 1031, the Secretary of Labor. ants as reimbursement for lost tobacco TUTION OF SPENDING.—The provisions of sub- (6) TOBACCO PRODUCT IMPORTER.—The term quota. section (c) of this section apply to this para- ‘‘tobacco product importer’’ has the meaning (b) ELIGIBILITY.—To be eligible to receive graph in the same manner and to the same given the term ‘‘importer’’ in section 5702 of payments under this section, a quota holder, extent as such provisions apply to the pro- the Internal Revenue Code of 1986. quota lessee, or quota tenant shall— gram described in paragraph (2)(G) of this (7) TOBACCO PRODUCT MANUFACTURER.— (1) prepare and submit to the Secretary an subsection. (A) IN GENERAL.—The term ‘‘tobacco prod- application at such time, in such manner, uct manufacturer’’ has the meaning given and containing such information as the Sec- FORD (AND OTHERS) the term ‘‘manufacturer of tobacco prod- retary may require, including information AMENDMENTS NOS. 2691–2692 ucts’’ in section 5702 of the Internal Revenue sufficient to make the demonstration re- Code of 1986. quired under paragraph (2); and (Ordered to lie on the table.) (B) EXCLUSION.—The term ‘‘tobacco prod- (2) demonstrate to the satisfaction of the Mr. FORD (for himself, Mr. HOL- uct manufacturer’’ does not include a person Secretary that, with respect to the 1997 mar- LINGS, and Mr. ROBB) submitted two that manufactures cigars or pipe tobacco. keting year— amendments intended to be proposed (8) TOBACCO WAREHOUSE OWNER.—The term (A) the producer was a quota holder and re- by them to the bill, S. 1415, supra; as ‘‘tobacco warehouse owner’’ means a ware- alized income (or would have realized in- follows: houseman that participated in an auction come, as determined by the Secretary, but market (as defined in the first section of the AMENDMENT NO. 2691 for a medical hardship or crop disaster dur- Tobacco Inspection Act (7 U.S.C. 511)) during ing the 1997 marketing year) from the pro- Beginning after line 14 on page 444, strike the 1998 marketing year. duction of tobacco through— through the end of the bill. (9) FLUE-CURED TOBACCO.—The term ‘‘flue- (i) the active production of tobacco; cured tobacco’’ includes type 21 and type 37 (ii) the lease and transfer of tobacco quota AMENDMENT NO. 2692 tobacco. to another farm; In lieu of the matter proposed to be strick- Subtitle A—Tobacco Community (iii) the rental of all or part of the farm of en, insert the following: Revitalization the quota holder, including the right to SEC. 1418. EFFECTIVE DATE. SEC. 1011. AUTHORIZATION OF APPROPRIATIONS. produce tobacco, to another tobacco pro- The amendments made by this subtitle There are appropriated and transferred to ducer; or take effect on the date of enactment of this the Secretary for each fiscal year such (iv) the hiring of a quota tenant to produce Act. amounts from the National Tobacco Trust tobacco; Fund established by section 401, other than (B) the producer was a quota lessee; or FORD AMENDMENT No. 2693 from amounts in the State Litigation Settle- (C) the producer was a quota tenant. ment Account, as may be necessary to carry (c) BASE QUOTA LEVEL.— (Ordered to lie on the table.) out the provisions of this title. (1) IN GENERAL.—The Secretary shall deter- Mr. FORD submitted an amendment SEC. 1012. EXPENDITURES. mine, for each quota holder, quota lessee, intended to be proposed by him to the The Secretary is authorized, subject to ap- and quota tenant, the base quota level for bill, S. 1415, supra; as follows: propriations, to make payments under— the 1995 through 1997 marketing years. In lieu of the matter proposed to be in- (1) section 1021 for payments for lost to- (2) QUOTA HOLDERS.—The base quota level serted, insert the following: bacco quota for each of fiscal years 1999 for a quota holder shall be equal to the aver- through 2023, but not to exceed $1,650,000,000 age tobacco farm marketing quota estab- TITLE X—LONG-TERM ECONOMIC for any fiscal year except to the extent the lished for the farm owned by the quota hold- ASSISTANCE FOR FARMERS payments are made in accordance with sub- er for the 1995 through 1997 marketing years. SEC. 1001. SHORT TITLE. section (d)(12) or (e)(9) of section 1021; (3) QUOTA LESSEES.—The base quota level This title may be cited as the ‘‘Long-Term (2) section 1022 for industry payments for for a quota lessee shall be equal to— Economic Assistance for Farmers Act’’ or all costs of the Department of Agriculture (A) 50 percent of the average number of the ‘‘LEAF Act’’. associated with the production of tobacco; pounds of tobacco quota established for the SEC. 1002. DEFINITIONS. (3) section 1023 for tobacco community eco- farm for the 1995 through 1997 marketing In this title: nomic development grants, but not to ex- years— (1) PARTICIPATING TOBACCO PRODUCER.—The ceed— (i) that was leased and transferred to a term ‘‘participating tobacco producer’’ (A) $375,000,000 for each of fiscal years 1999 farm owned by the quota lessee; or means a quota holder, quota lessee, or quota through 2008, less any amount required to be (ii) that was rented to the quota lessee for tenant. paid under section 1022 for the fiscal year; the right to produce the tobacco; less (2) QUOTA HOLDER.—The term ‘‘quota hold- and (B) 25 percent of the average number of er’’ means an owner of a farm on January 1, (B) $450,000,000 for each of fiscal year 2009 pounds of tobacco quota described in sub- 1998, for which a tobacco farm marketing through 2023, less any amount required to be paragraph (A) for which a quota tenant was quota or farm acreage allotment was estab- paid under section 1022 during the fiscal the principal producer of the tobacco quota. lished under the Agricultural Adjustment year; (4) QUOTA TENANTS.—The base quota level Act of 1938 (7 U.S.C. 1281 et seq.). (4) section 1031 for assistance provided for a quota tenant shall be equal to the sum (3) QUOTA LESSEE.—The term ‘‘quota les- under the tobacco worker transition pro- of— see’’ means— gram, but not to exceed $25,000,000 for any (A) 50 percent of the average number of (A) a producer that owns a farm that pro- fiscal year; and pounds of tobacco quota established for a duced tobacco pursuant to a lease and trans- (5) subpart 9 of part A of title IV of the farm for the 1995 through 1997 marketing fer to that farm of all or part of a tobacco Higher Education Act of 1965 for farmer op- years— farm marketing quota or farm acreage allot- portunity grants, but not to exceed— (i) that was owned by a quota holder; and ment established under the Agricultural Ad- (A) $42,500,000 for each of the academic (ii) for which the quota tenant was the justment Act of 1938 (7 U.S.C. 1281 et seq.) for years 1999–2000 through 2003–2004; principal producer of the tobacco on the any of the 1995, 1996, or 1997 crop years; or (B) $50,000,000 for each of the academic farm; and (B) a producer that rented land from a years 2004–2005 through 2008–2009; (B) 25 percent of the average number of farm operator to produce tobacco under a to- (C) $57,500,000 for each of the academic pounds of tobacco quota for the 1995 through bacco farm marketing quota or farm acreage years 2009–2010 through 2013–2014; 1997 marketing years— allotment established under the Agricultural (D) $65,000,000 for each of the academic (i)(I) that was leased and transferred to a Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) years 2014–2015 through 2018–2019; and farm owned by the quota lessee; or for any of the 1995, 1996, or 1997 crop years. (E) $72,500,000 for each of the academic (II) for which the rights to produce the to- (4) QUOTA TENANT.—The term ‘‘quota ten- years 2019–2020 through 2023–2024. bacco were rented to the quota lessee; and ant’’ means a producer that— SEC. 1013. BUDGETARY TREATMENT. (ii) for which the quota tenant was the (A) is the principal producer, as deter- This subtitle constitutes budget authority principal producer of the tobacco on the mined by the Secretary, of tobacco on a farm in advance of appropriations Acts and rep- farm. S6208 CONGRESSIONAL RECORD — SENATE June 11, 1998

(5) MARKETING QUOTAS OTHER THAN POUND- (4) REISSUANCE OF QUOTA.— (E) SPECIAL RULE FOR TENANT OF LEASED AGE QUOTAS.— (A) REALLOCATION TO LESSEE OR TENANT.— TOBACCO.—If a quota holder exercises an op- (A) IN GENERAL.—For each type of tobacco If a quota holder exercises an option to relin- tion to relinquish a tobacco farm marketing for which there is a marketing quota or al- quish a tobacco farm marketing quota or quota or farm acreage allotment under para- lotment (on an acreage basis), the base quota farm acreage allotment under paragraph (2), graph (2), the farm marketing quota or farm level for each quota holder, quota lessee, or a quota lessee or quota tenant that was the acreage allotment shall be divided evenly be- quota tenant shall be determined in accord- primary producer during the 1997 marketing tween, and the option of reallocating the ance with this subsection (based on a pound- year of tobacco pursuant to the farm mar- farm marketing quota or farm acreage allot- age conversion) by multiplying— keting quota or farm acreage allotment, as ment shall be offered in equal portions to, (i) the average tobacco farm marketing determined by the Secretary, shall be given the quota lessee and to the quota tenant, if— quota or allotment for the 1995 through 1997 the option of having an allotment of the (i) during the 1997 marketing year, the marketing years; and farm marketing quota or farm acreage allot- farm marketing quota or farm acreage allot- (ii) the average yield per acre for the farm ment reallocated to a farm owned by the ment was leased and transferred to a farm for the type of tobacco for the marketing quota lessee or quota tenant. owned by the quota lessee; and years. (B) CONDITIONS FOR REALLOCATION.— (ii) the quota tenant was the primary pro- (B) YIELDS NOT AVAILABLE.—If the average ducer, as determined by the Secretary, of to- (i) TIMING.—A quota lessee or quota tenant yield per acre is not available for a farm, the that is given the option of having an allot- bacco pursuant to the farm marketing quota Secretary shall calculate the base quota for ment of a farm marketing quota or farm or farm acreage allotment. the quota holder, quota lessee, or quota ten- (5) PAYMENTS FOR LOST TOBACCO QUOTA TO acreage allotment reallocated to a farm ant (based on a poundage conversion) by de- QUOTA HOLDERS.— owned by the quota lessee or quota tenant termining the amount equal to the product (A) IN GENERAL.—Except as otherwise pro- under subparagraph (A) shall have 1 year obtained by multiplying— vided in this subsection, during any market- from the date on which a farm marketing (i) the average tobacco farm marketing ing year in which the national marketing quota or farm acreage allotment is relin- quota or allotment for the 1995 through 1997 quota for a type of tobacco is less than the quished under paragraph (2) to exercise the marketing years; and average national marketing quota for the option. (ii) the average county yield per acre for 1995 through 1997 marketing years, the Sec- the county in which the farm is located for (ii) LIMITATION ON ACREAGE ALLOTMENT.—In retary shall make payments for lost tobacco the type of tobacco for the marketing years. the case of a farm acreage allotment, the quota to each quota holder, for types of to- (d) PAYMENTS FOR LOST TOBACCO QUOTA acreage allotment determined for any farm bacco other than flue-cured tobacco, that is FOR TYPES OF TOBACCO OTHER THAN FLUE- subsequent to any reallocation under sub- eligible under subsection (b), and has not ex- CURED TOBACCO.— paragraph (A) shall not exceed 50 percent of ercised an option to relinquish a tobacco (1) ALLOCATION OF FUNDS.—Of the amounts the acreage of cropland of the farm owned by farm marketing quota or farm acreage allot- made available under section 1011(d)(1) for the quota lessee or quota tenant. ment under paragraph (2), in an amount that payments for lost tobacco quota, the Sec- (iii) LIMITATION ON MARKETING QUOTA.—In is equal to the product obtained by multiply- retary shall make available for payments the case of a farm marketing quota, the mar- ing— under this subsection an amount that bears keting quota determined for any farm subse- (i) the number of pounds by which the the same ratio to the amounts made avail- quent to any reallocation under subpara- basic farm marketing quota (or poundage able as— graph (A) shall not exceed an amount deter- conversion) is less than the base quota level (A) the sum of all national marketing mined by multiplying— for the quota holder; and quotas for all types of tobacco other than (I) the average county farm yield, as deter- (ii) $4 per pound. flue-cured tobacco during the 1995 through mined by the Secretary; and (B) POUNDAGE CONVERSION FOR MARKETING 1997 marketing years; bears to (II) 50 percent of the acreage of cropland of QUOTAS OTHER THAN POUNDAGE QUOTAS.— (B) the sum of all national marketing the farm owned by the quota lessee or quota (i) IN GENERAL.—For each type of tobacco quotas for all types of tobacco during the tenant. for which there is a marketing quota or al- 1995 through 1997 marketing years. (C) ELIGIBILITY OF LESSEE OR TENANT FOR lotment (on an acreage basis), the poundage (2) OPTION TO RELINQUISH QUOTA.— PAYMENTS.—If a farm marketing quota or conversion for each quota holder during a (A) IN GENERAL.—Each quota holder, for farm acreage allotment is reallocated to a marketing year shall be determined by mul- types of tobacco other than flue-cured to- quota lessee or quota tenant under subpara- tiplying— bacco, shall be given the option to relinquish graph (A)— (I) the basic farm acreage allotment for the farm marketing quota or farm acreage (i) the quota lessee or quota tenant shall the farm for the marketing year; and allotment of the quota holder in exchange not be eligible for any additional payments (II) the average yield per acre for the farm for a payment made under paragraph (3). under paragraph (5) or (6) as a result of the for the type of tobacco. (B) NOTIFICATION.—A quota holder shall reallocation; and (ii) YIELD NOT AVAILABLE.—If the average give notification of the intention of the (ii) the base quota level for the quota les- yield per acre is not available for a farm, the quota holder to exercise the option at such see or quota tenant shall not be increased as Secretary shall calculate the poundage con- time and in such manner as the Secretary a result of the reallocation. version for each quota holder during a mar- may require, but not later than January 15, (D) REALLOCATION TO QUOTA HOLDERS WITH- keting year by multiplying— 1999. IN SAME COUNTY OR STATE.— (I) the basic farm acreage allotment for (3) PAYMENTS FOR LOST TOBACCO QUOTA TO (i) IN GENERAL.—Except as provided in the farm for the marketing year; and QUOTA HOLDERS EXERCISING OPTIONS TO RELIN- clause (ii), if there was no quota lessee or (II) the average county yield per acre for QUISH QUOTA.— quota tenant for the farm marketing quota the county in which the farm is located for (A) IN GENERAL.—Subject to subparagraph or farm acreage allotment for a type of to- the type of tobacco. (E), for each of fiscal years 1999 through 2008, bacco, or if no quota lessee or quota tenant (6) PAYMENTS FOR LOST TOBACCO QUOTA TO the Secretary shall make annual payments exercises an option of having an allotment of QUOTA LESSEES AND QUOTA TENANTS.—Except for lost tobacco quota to each quota holder the farm marketing quota or farm acreage as otherwise provided in this subsection, dur- that has relinquished the farm marketing allotment for a type of tobacco reallocated, ing any marketing year in which the na- quota or farm acreage allotment of the quota the Secretary shall reapportion the farm tional marketing quota for a type of tobacco holder under paragraph (2). marketing quota or farm acreage allotment is less than the average national marketing (B) AMOUNT.—The amount of a payment among the remaining quota holders for the quota for the type of tobacco for the 1995 made to a quota holder described in subpara- type of tobacco within the same county. through 1997 marketing years, the Secretary graph (A) for a marketing year shall equal (ii) CROSS-COUNTY LEASING.—In a State in shall make payments for lost tobacco quota 1⁄10 of the lifetime limitation established which cross-county leasing is authorized pur- to each quota lessee and quota tenant, for under subparagraph (E). suant to section 319(l) of the Agricultural types of tobacco other than flue-cured to- (C) TIMING.—The Secretary shall begin Adjustment Act of 1938 (7 U.S.C. 1314e(l)), the bacco, that is eligible under subsection (b) in making annual payments under this para- Secretary shall reapportion the farm mar- an amount that is equal to the product ob- graph for the marketing year in which the keting quota among the remaining quota tained by multiplying— farm marketing quota or farm acreage allot- holders for the type of tobacco within the (A) the percentage by which the national ment is relinquished. same State. marketing quota for the type of tobacco is (D) ADDITIONAL PAYMENTS.—The Secretary (iii) ELIGIBILITY OF QUOTA HOLDER FOR PAY- less than the average national marketing may increase annual payments under this MENTS.—If a farm marketing quota is re- quota for the type of tobacco for the 1995 paragraph in accordance with paragraph apportioned to a quota holder under this sub- through 1997 marketing years; (7)(E) to the extent that funding is available. paragraph— (B) the base quota level for the quota les- (E) LIFETIME LIMITATION ON PAYMENTS.— (I) the quota holder shall not be eligible for see or quota tenant; and The total amount of payments made under any additional payments under paragraph (5) (C) $4 per pound. this paragraph to a quota holder shall not or (6) as a result of the reapportionment; and (7) LIFETIME LIMITATION ON PAYMENTS.—Ex- exceed the product obtained by multiplying (II) the base quota level for the quota hold- cept as otherwise provided in this sub- the base quota level for the quota holder by er shall not be increased as a result of the re- section, the total amount of payments made $8 per pound. apportionment. under this subsection to a quota holder, June 11, 1998 CONGRESSIONAL RECORD — SENATE S6209

quota lessee, or quota tenant during the life- (II) decreased by any payments under para- (e) PAYMENTS FOR LOST TOBACCO QUOTA time of the quota holder, quota lessee, or graph (5) for lost tobacco quota previously FOR FLUE-CURED TOBACCO.— quota tenant shall not exceed the product made that are attributable to the quota that (1) ALLOCATION OF FUNDS.—Of the amounts obtained by multiplying— is sold and transferred. made available under section 1011(d)(1) for (A) the base quota level for the quota hold- (10) SALE OR TRANSFER OF FARM.—On the payments for lost tobacco quota, the Sec- er, quota lessee, or quota tenant; and sale or transfer of ownership of a farm that retary shall make available for payments (B) $8 per pound. is owned by a quota holder, the base quota under this subsection an amount that bears (8) LIMITATIONS ON AGGREGATE ANNUAL PAY- level established under subsection (c), the the same ratio to the amounts made avail- MENTS.— right to payments under paragraph (5), and able as— (A) IN GENERAL.—Except as otherwise pro- the lifetime limitation on payments estab- (A) the sum of all national marketing vided in this paragraph, the total amount lished under paragraph (7) shall transfer to quotas for flue-cured tobacco during the 1995 payable under this subsection for any mar- the new owner of the farm to the same ex- through 1997 marketing years; bears to keting year shall not exceed the amount tent and in the same manner as those provi- (B) the sum of all national marketing made available under paragraph (1). sions applied to the previous quota holder. quotas for all types of tobacco during the (B) ACCELERATED PAYMENTS.—Paragraph (11) DEATH OF QUOTA LESSEE OR QUOTA TEN- 1995 through 1997 marketing years. (1) shall not apply if accelerated payments ANT.—If a quota lessee or quota tenant that (2) RELINQUISHMENT OF QUOTA.— for lost tobacco quota are made in accord- is entitled to payments under this subsection (A) IN GENERAL.—Each quota holder of flue- ance with paragraph (12). dies and is survived by a spouse or 1 or more cured tobacco shall relinquish the farm mar- (C) REDUCTIONS.—If the sum of the dependents, the right to receive the pay- keting quota or farm acreage allotment in amounts determined under paragraphs (3), ments shall transfer to the surviving spouse exchange for a payment made under para- (5), and (6) for a marketing year exceeds the or, if there is no surviving spouse, to the sur- graph (3) due to the transition from farm amount made available under paragraph (1), viving dependents in equal shares. marketing quotas as provided under section the Secretary shall make a pro rata reduc- (12) ACCELERATION OF PAYMENTS.— 317 of the Agricultural Adjustment Act of tion in the amounts payable under para- (A) IN GENERAL.—On the occurrence of any 1938 for flue-cured tobacco to individual to- graphs (5) and (6) to quota holders, quota les- of the events described in subparagraph (B), bacco production permits as provided under sees, and quota tenants under this sub- the Secretary shall make an accelerated section 317A of the Agricultural Adjustment section to ensure that the total amount of lump sum payment for lost tobacco quota as Act of 1938 for flue-cured tobacco. payments for lost tobacco quota does not ex- established under paragraphs (5) and (6) to (B) NOTIFICATION.—The Secretary shall no- ceed the amount made available under para- each quota holder, quota lessee, and quota tify the quota holders of the relinquishment graph (1). tenant for any affected type of tobacco in ac- of their quota or allotment at such time and (D) ROLLOVER OF PAYMENTS FOR LOST TO- cordance with subparagraph (C). in such manner as the Secretary may re- BACCO QUOTA.—Subject to subparagraph (A), (B) TRIGGERING EVENTS.—The Secretary quire, but not later than November 15, 1998. if the Secretary makes a reduction in ac- shall make accelerated payments under sub- (3) PAYMENTS FOR LOST FLUE-CURED TO- cordance with subparagraph (C), the amount paragraph (A) if after the date of enactment BACCO QUOTA TO QUOTA HOLDERS THAT RELIN- of the reduction shall be applied to the next of this Act— QUISH QUOTA.— marketing year and added to the payments (i) subject to subparagraph (D), for 3 con- (A) IN GENERAL.—For each of fiscal years for lost tobacco quota for the marketing secutive marketing years, the national mar- 1999 through 2008, the Secretary shall make year. keting quota or national acreage allotment annual payments for lost flue-cured tobacco (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- for a type of tobacco is less than 50 percent to each quota holder that has relinquished ERS EXERCISING OPTION TO RELINQUISH of the national marketing quota or national the farm marketing quota or farm acreage QUOTA.—If the amount made available under acreage allotment for the type of tobacco for allotment of the quota holder under para- paragraph (1) exceeds the sum of the the 1998 marketing year; or graph (2). amounts determined under paragraphs (3), (ii) Congress repeals or makes ineffective, (B) AMOUNT.—The amount of a payment (5), and (6) for a marketing year, the Sec- directly or indirectly, any provision of— made to a quota holder described in subpara- retary shall distribute the amount of the ex- (I) section 316 of the Agricultural Adjust- graph (A) for a marketing year shall equal cess pro rata to quota holders that have ex- ment Act of 1938 (7 U.S.C. 1314b); 1⁄10 of the lifetime limitation established ercised an option to relinquish a tobacco (II) section 319 of the Agricultural Adjust- under paragraph (6). farm marketing quota or farm acreage allot- ment Act of 1938 (7 U.S.C. 1314e); (C) TIMING.—The Secretary shall begin ment under paragraph (2) by increasing the (III) section 106 of the Agricultural Act of making annual payments under this para- amount payable to each such holder under 1949 (7 U.S.C. 1445); graph for the marketing year in which the paragraph (3). (IV) section 106A of the Agricultural Act of farm marketing quota or farm acreage allot- (9) SUBSEQUENT SALE AND TRANSFER OF 1949 (7 U.S.C. 1445–1); or ment is relinquished. QUOTA.—Effective beginning with the 1999 (V) section 106B of the Agricultural Act of marketing year, on the sale and transfer of a 1949 (7 U.S.C. 1445–2). (D) ADDITIONAL PAYMENTS.—The Secretary may increase annual payments under this farm marketing quota or farm acreage allot- (C) AMOUNT.—The amount of the acceler- ment under section 316(g) or 319(g) of the Ag- ated payments made to each quota holder, paragraph in accordance with paragraph ricultural Adjustment Act of 1938 (7 U.S.C. quota lessee, and quota tenant under this (7)(E) to the extent that funding is available. 1314b(g), 1314e(g))— subsection shall be equal to— (4) PAYMENTS FOR LOST FLUE-CURED TO- (A) the person that sold and transferred (i) the amount of the lifetime limitation BACCO QUOTA TO QUOTA LESSEES AND QUOTA the quota or allotment shall have— established for the quota holder, quota les- TENANTS THAT HAVE NOT RELINQUISHED PER- (i) the base quota level attributable to the see, or quota tenant under paragraph (7); less MITS.— person reduced by the base quota level at- (ii) any payments for lost tobacco quota (A) IN GENERAL.—Except as otherwise pro- tributable to the quota that is sold and received by the quota holder, quota lessee, or vided in this subsection, during any market- transferred; and quota tenant before the occurrence of any of ing year in which the national marketing (ii) the lifetime limitation on payments es- the events described in subparagraph (B). quota for flue-cured tobacco is less than the tablished under paragraph (7) attributable to (D) REFERENDUM VOTE NOT A TRIGGERING average national marketing quota for the the person reduced by the product obtained EVENT.—A referendum vote of producers for 1995 through 1997 marketing years, the Sec- by multiplying— any type of tobacco that results in the na- retary shall make payments for lost tobacco (I) the base quota level attributable to the tional marketing quota or national acreage quota to each quota lessee or quota tenant quota; and allotment not being in effect for the type of that— (II) $8 per pound; and tobacco shall not be considered a triggering (i) is eligible under subsection (b); (B) if the quota or allotment has never event under this paragraph. (ii) has been issued an individual tobacco been relinquished by a previous quota holder (13) BAN ON SUBSEQUENT SALE OR LEASING OF production permit under section 317A(b) of under paragraph (2), the person that acquired FARM MARKETING QUOTA OR FARM ACREAGE AL- the Agricultural Adjustment Act of 1938; and the quota shall have— LOTMENT TO QUOTA HOLDERS EXERCISING OP- (iii) has not exercised an option to relin- (i) the base quota level attributable to the TION TO RELINQUISH QUOTA.—No quota holder quish the permit. person increased by the base quota level at- that exercises the option to relinquish a (B) AMOUNT.—The amount of a payment tributable to the quota that is sold and farm marketing quota or farm acreage allot- made to a quota lessee or quota tenant de- transferred; and ment for any type of tobacco under para- scribed in subparagraph (A) for a marketing (ii) the lifetime limitation on payments es- graph (2) shall be eligible to acquire a farm year shall be equal to the product obtained tablished under paragraph (7) attributable to marketing quota or farm acreage allotment by multiplying— the person— for the type of tobacco, or to obtain the lease (i) the number of pounds by which the indi- (I) increased by the product obtained by or transfer of a farm marketing quota or vidual marketing limitation established for multiplying— farm acreage allotment for the type of to- the permit is less than twice the base quota (aa) the base quota level attributable to bacco, for a period of 25 crop years after the level for the quota lessee or quota tenant; the quota; and date on which the quota or allotment was re- and (bb) $8 per pound; but linquished. (ii) $2 per pound. S6210 CONGRESSIONAL RECORD — SENATE June 11, 1998

(5) PAYMENTS FOR LOST FLUE-CURED TO- payments under paragraph (4) or (5) dies and (1) to provide direct benefits to quota hold- BACCO QUOTA TO QUOTA LESSEES AND QUOTA is survived by a spouse or 1 or more descend- ers, quota lessees, or quota tenants; or TENANTS THAT HAVE RELINQUISHED PERMITS.— ants, the right to receive the payments shall (2) in a manner that results in a decrease, (A) IN GENERAL.—For each of fiscal years transfer to the surviving spouse or, if there or an increase relative to other crops, in the 1999 through 2008, the Secretary shall make is no surviving spouse, to the surviving de- amount of the crop insurance premiums as- annual payments for lost flue-cured tobacco scendants in equal shares. sessed to participating tobacco producers quota to each quota lessee and quota tenant (9) ACCELERATION OF PAYMENTS.— under the Federal Crop Insurance Act (7 that has relinquished an individual tobacco (A) IN GENERAL.—On the occurrence of any U.S.C. 1501 et seq.). production permit under section 317A(b)(5) of of the events described in subparagraph (B), (c) DETERMINATIONS.—Not later than Sep- the Agricultural Adjustment Act of 1938. the Secretary shall make an accelerated tember 30, 1998, and each fiscal year there- (B) AMOUNT.—The amount of a payment lump sum payment for lost flue-cured to- after, the Secretary shall determine— made to a quota lessee or quota tenant de- bacco quota as established under paragraphs (1) the amount of costs described in sub- scribed in subparagraph (A) for a marketing (3), (4), and (5) to each quota holder, quota section (a); and year shall be equal to 1⁄10 of the lifetime limi- lessee, and quota tenant for flue-cured to- (2) the amount that will be provided under tation established under paragraph (6). bacco in accordance with subparagraph (C). this section as reimbursement for the costs. (C) TIMING.—The Secretary shall begin (B) TRIGGERING EVENTS.—The Secretary SEC. 1023. TOBACCO COMMUNITY ECONOMIC DE- making annual payments under this para- shall make accelerated payments under sub- VELOPMENT GRANTS. graph for the marketing year in which the paragraph (A) if after the date of enactment (a) AUTHORITY.—The Secretary shall make individual tobacco production permit is re- of this Act— grants to tobacco-growing States in accord- linquished. (i) subject to subparagraph (D), for 3 con- ance with this section to enable the States (D) ADDITIONAL PAYMENTS.—The Secretary secutive marketing years, the national mar- to carry out economic development initia- may increase annual payments under this keting quota or national acreage allotment tives in tobacco-growing communities. paragraph in accordance with paragraph for flue-cured tobacco is less than 50 percent (b) APPLICATION.—To be eligible to receive (7)(E) to the extent that funding is available. of the national marketing quota or national payments under this section, a State shall (E) PROHIBITION AGAINST PERMIT EXPAN- acreage allotment for flue-cured tobacco for prepare and submit to the Secretary an ap- SION.—A quota lessee or quota tenant that the 1998 marketing year; or plication at such time, in such manner, and containing such information as the Sec- receives a payment under this paragraph (ii) Congress repeals or makes ineffective, retary may require, including— shall be ineligible to receive any new or in- directly or indirectly, any provision of— (1) a description of the activities that the creased tobacco production permit from the (I) section 316 of the Agricultural Adjust- State will carry out using amounts received county production pool established under ment Act of 1938 (7 U.S.C. 1314b); under the grant; section 317A(b)(8) of the Agricultural Adjust- (II) section 319 of the Agricultural Adjust- (2) a designation of an appropriate State ment Act of 1938. ment Act of 1938 (7 U.S.C. 1314e); agency to administer amounts received (6) LIFETIME LIMITATION ON PAYMENTS.—Ex- (III) section 106 of the Agricultural Act of under the grant; and cept as otherwise provided in this sub- 1949 (7 U.S.C. 1445); (3) a description of the steps to be taken to section, the total amount of payments made (IV) section 106A of the Agricultural Act of under this subsection to a quota holder, ensure that the funds are distributed in ac- 1949 (7 U.S.C. 1445–1); quota lessee, or quota tenant during the life- cordance with subsection (e). (V) section 106B of the Agricultural Act of time of the quota holder, quota lessee, or (c) AMOUNT OF GRANT.— 1949 (7 U.S.C. 1445–2); or quota tenant shall not exceed the product (1) IN GENERAL.—From the amounts avail- (VI) section 317A of the Agricultural Ad- obtained by multiplying— able to carry out this section for a fiscal justment Act of 1938. (A) the base quota level for the quota hold- year, the Secretary shall allot to each State (C) AMOUNT.—The amount of the acceler- er, quota lessee, or quota tenant; and an amount that bears the same ratio to the ated payments made to each quota holder, (B) $8 per pound. amounts available as the total farm income quota lessee, and quota tenant under this (7) LIMITATIONS ON AGGREGATE ANNUAL PAY- of the State derived from the production of subsection shall be equal to— MENTS.— tobacco during the 1995 through 1997 market- (i) the amount of the lifetime limitation (A) IN GENERAL.—Except as otherwise pro- ing years (as determined under paragraph established for the quota holder, quota les- vided in this paragraph, the total amount (2)) bears to the total farm income of all see, or quota tenant under paragraph (6); less payable under this subsection for any mar- States derived from the production of to- (ii) any payments for lost flue-cured to- keting year shall not exceed the amount bacco during the 1995 through 1997 marketing bacco quota received by the quota holder, made available under paragraph (1). years. quota lessee, or quota tenant before the oc- (B) ACCELERATED PAYMENTS.—Paragraph (2) TOBACCO INCOME.—For the 1995 through currence of any of the events described in (1) shall not apply if accelerated payments 1997 marketing years, the Secretary shall de- subparagraph (B). for lost flue-cured tobacco quota are made in termine the amount of farm income derived (D) REFERENDUM VOTE NOT A TRIGGERING accordance with paragraph (9). from the production of tobacco in each State EVENT.—A referendum vote of producers for (C) REDUCTIONS.—If the sum of the and in all States. amounts determined under paragraphs (3), flue-cured tobacco that results in the na- (d) PAYMENTS.— (4), and (5) for a marketing year exceeds the tional marketing quota or national acreage (1) IN GENERAL.—A State that has an appli- amount made available under paragraph (1), allotment not being in effect for flue-cured cation approved by the Secretary under sub- the Secretary shall make a pro rata reduc- tobacco shall not be considered a triggering section (b) shall be entitled to a payment tion in the amounts payable under paragraph event under this paragraph. under this section in an amount that is equal (4) to quota lessees and quota tenants under SEC. 1022. INDUSTRY PAYMENTS FOR ALL DE- to its allotment under subsection (c). this subsection to ensure that the total PARTMENT COSTS ASSOCIATED (2) FORM OF PAYMENTS.—The Secretary amount of payments for lost flue-cured to- WITH TOBACCO PRODUCTION. may make payments under this section to a bacco quota does not exceed the amount (a) IN GENERAL.—The Secretary shall use State in installments, and in advance or by made available under paragraph (1). such amounts remaining unspent and obli- way of reimbursement, with necessary ad- (D) ROLLOVER OF PAYMENTS FOR LOST FLUE- gated at the end of each fiscal year to reim- justments on account of overpayments or CURED TOBACCO QUOTA.—Subject to subpara- burse the Secretary for— underpayments, as the Secretary may deter- graph (A), if the Secretary makes a reduc- (1) costs associated with the administra- mine. tion in accordance with subparagraph (C), tion of programs established under this title (3) REALLOTMENTS.—Any portion of the al- the amount of the reduction shall be applied and amendments made by this title; lotment of a State under subsection (c) that to the next marketing year and added to the (2) costs associated with the administra- the Secretary determines will not be used to payments for lost flue-cured tobacco quota tion of the tobacco quota and price support carry out this section in accordance with an for the marketing year. programs administered by the Secretary; approved State application required under (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- (3) costs to the Federal Government of car- subsection (b), shall be reallotted by the Sec- ERS EXERCISING OPTION TO RELINQUISH QUOTAS rying out crop insurance programs for to- retary to other States in proportion to the OR PERMITS, OR TO QUOTA LESSEES OR QUOTA bacco; original allotments to the other States. TENANTS RELINQUISHING PERMITS.—If the (4) costs associated with all agricultural (e) USE AND DISTRIBUTION OF FUNDS.— amount made available under paragraph (1) research, extension, or education activities (1) IN GENERAL.—Amounts received by a exceeds the sum of the amounts determined associated with tobacco; State under this section shall be used to under paragraphs (3), (4), and (5) for a mar- (5) costs associated with the administra- carry out economic development activities, keting year, the Secretary shall distribute tion of loan association and cooperative pro- including— the amount of the excess pro rata to quota grams for tobacco producers, as approved by (A) rural business enterprise activities de- holders by increasing the amount payable to the Secretary; and scribed in subsections (c) and (e) of section each such holder under paragraphs (3) and (6) any other costs incurred by the Depart- 310B of the Consolidated Farm and Rural De- (5). ment of Agriculture associated with the pro- velopment Act (7 U.S.C. 1932); (8) DEATH OF QUOTA HOLDER, QUOTA LESSEE, duction of tobacco. (B) down payment loan assistance pro- OR QUOTA TENANT.—If a quota holder, quota (b) LIMITATIONS.—Amounts made available grams that are similar to the program de- lessee or quota tenant that is entitled to under subsection (a) may not be used— scribed in section 310E of the Consolidated June 11, 1998 CONGRESSIONAL RECORD — SENATE S6211

Farm and Rural Development Act (7 U.S.C. tion income for the State determined under ‘‘(2) INDIVIDUAL MARKETING LIMITATION.— 1935); subsection (c); and The term ‘individual marketing limitation’ (C) activities designed to help create pro- (ii) 50 percent of the total amounts re- means the number of pounds of flue-cured to- ductive farm or off-farm employment in ceived by a State under this section during bacco that may be marketed by the holder of rural areas to provide a more viable eco- the 5-year period. a permit during a marketing year, cal- nomic base and enhance opportunities for (f) PREFERENCES IN HIRING.—A State may culated— improved incomes, living standards, and con- require recipients of funds under this section ‘‘(A) prior to— tributions by rural individuals to the eco- to provide a preference in employment to— ‘‘(i) any increase or decrease in the number nomic and social development of tobacco (1) an individual who— due to undermarketings or overmarketings; communities; (A) during the 1998 calendar year, was em- and (D) activities that expand existing infra- ployed in the manufacture, processing, or ‘‘(ii) any reduction under subsection (i); structure, facilities, and services to capital- warehousing of tobacco or tobacco products, and ize on opportunities to diversify economies or resided, in a county described in sub- ‘‘(B) in a manner that ensures that— in tobacco communities and that support the section (e)(2); and ‘‘(i) the total of all individual marketing development of new industries or commer- (B) is eligible for assistance under the to- limitations is equal to the national market- cial ventures; bacco worker transition program established ing quota, less the reserve provided under (E) activities by agricultural organizations under section 1031; or subsection (h); and that provide assistance directly to partici- (2) an individual who— ‘‘(ii) the individual marketing limitation for a marketing year is obtained by mul- pating tobacco producers to assist in devel- (A) during the 1998 marketing year, carried tiplying the individual acreage limitation by oping other agricultural activities that sup- out tobacco quota or relevant tobacco pro- the permit yield, prior to any adjustment for plement tobacco-producing activities; duction activities in a county described in undermarketings or overmarketings. (F) initiatives designed to create or expand subsection (e)(2); ‘‘(3) INDIVIDUAL TOBACCO PRODUCTION PER- locally owned value-added processing and (B) is eligible for a farmer opportunity MIT.—The term ‘individual tobacco produc- marketing operations in tobacco commu- grant under subpart 9 of part A of title IV of tion permit’ means a permit issued by the nities; the Higher Education Act of 1965; and (C) has successfully completed a course of Secretary to a person authorizing the pro- (G) technical assistance activities by per- duction of flue-cured tobacco for any mar- sons to support farmer-owned enterprises, or study at an institution of higher education. (g) MAINTENANCE OF EFFORT.— keting year during which this section is ef- agriculture-based rural development enter- fective. prises, of the type described in section 252 or (1) IN GENERAL.—Subject to paragraph (2), a ‘‘(4) NATIONAL ACREAGE ALLOTMENT.—The 253 of the Trade Act of 1974 (19 U.S.C. 2342, State shall provide an assurance to the Sec- retary that the amount of funds expended by term ‘national acreage allotment’ means the 2343); and quantity determined by dividing— (H) initiatives designed to partially com- the State and all counties in the State de- scribed in subsection (e)(2) for any activities ‘‘(A) the national marketing quota; by pensate tobacco warehouse owners for lost ‘‘(B) the national average yield goal. revenues and assist the tobacco warehouse funded under this section for a fiscal year is not less than 90 percent of the amount of ‘‘(5) NATIONAL AVERAGE YIELD GOAL.—The owners in establishing successful business term ‘national average yield goal’ means the funds expended by the State and counties for enterprises. national average yield for flue-cured tobacco the activities for the preceding fiscal year. (2) TOBACCO-GROWING COUNTIES.—Assistance during the 5 marketing years immediately (2) REDUCTION OF GRANT AMOUNT.—If a may be provided by a State under this sec- preceding the marketing year for which the State does not provide an assurance de- tion only to assist a county in the State that determination is being made. scribed in paragraph (1), the Secretary shall has been determined by the Secretary to ‘‘(6) NATIONAL MARKETING QUOTA.—For the reduce the amount of the grant determined have in excess of $100,000 in income derived 1999 and each subsequent crop of flue-cured under subsection (c) by an amount equal to from the production of tobacco during 1 or tobacco, the term ‘national marketing the amount by which the amount of funds more of the 1995 through 1997 marketing quota’ for a marketing year means the quan- expended by the State and counties for the years. For purposes of this section, the term tity of flue-cured tobacco, as determined by ‘‘tobacco-growing county’’ includes a politi- activities is less than 90 percent of the the Secretary, that is not more than 103 per- cal subdivision surrounded within a State by amount of funds expended by the State and cent nor less than 97 percent of the total of— a county that has been determined by the counties for the activities for the preceding ‘‘(A) the aggregate of the quantities of Secretary to have in excess of $100,000 in in- fiscal year, as determined by the Secretary. flue-cured tobacco that domestic manufac- come derived from the production of tobacco (3) FEDERAL FUNDS.—For purposes of this turers of cigarettes estimate that the manu- during 1 or more of the 1995 through 1997 subsection, the amount of funds expended by facturers intend to purchase on the United marketing years. a State or county shall not include any States auction markets or from producers (3) DISTRIBUTION.— amounts made available by the Federal Gov- during the marketing year, as compiled and (A) ECONOMIC DEVELOPMENT ACTIVITIES.— ernment. determined under section 320A; Not less than 20 percent of the amounts re- SEC. 1024. FLUE-CURED TOBACCO PRODUCTION ‘‘(B) the average annual quantity of flue- ceived by a State under this section shall be PERMITS. cured tobacco exported from the United used to carry out— The Agricultural Adjustment Act of 1938 is States during the 3 marketing years imme- (i) economic development activities de- amended by inserting after section 317 (7 diately preceding the marketing year for scribed in subparagraph (E) or (F) of para- U.S.C. 1314c) the following: which the determination is being made; and graph (1); or ‘‘SEC. 317A. FLUE-CURED TOBACCO PRODUCTION ‘‘(C) the quantity, if any, of flue-cured to- (ii) agriculture-based rural development PERMITS. bacco that the Secretary, in the discretion of activities described in paragraph (1)(G). ‘‘(a) DEFINITIONS.—In this section: the Secretary, determines is necessary to in- (B) TECHNICAL ASSISTANCE ACTIVITIES.—Not ‘‘(1) INDIVIDUAL ACREAGE LIMITATION.—The crease or decrease the inventory of the pro- less than 4 percent of the amounts received term ‘individual acreage limitation’ means ducer-owned cooperative marketing associa- by a State under this section shall be used to the number of acres of flue-cured tobacco tion that has entered into a loan agreement carry out technical assistance activities de- that may be planted by the holder of a per- with the Commodity Credit Corporation to scribed in paragraph (1)(G). mit during a marketing year, calculated— make price support available to producers of (C) TOBACCO WAREHOUSE OWNER INITIA- ‘‘(A) prior to— flue-cured tobacco to establish or maintain TIVES.—Not less than 6 percent of the ‘‘(i) any increase or decrease in the number the inventory at the reserve stock level for amounts received by a State under this sec- due to undermarketings or overmarketings; flue-cured tobacco. tion during each of fiscal years 1999 through and ‘‘(7) PERMIT YIELD.—The term ‘permit 2008 shall be used to carry out initiatives de- ‘‘(ii) any reduction under subsection (i); yield’ means the yield of tobacco per acre for scribed in paragraph (1)(H). and an individual tobacco production permit (D) TOBACCO-GROWING COUNTIES.—To be eli- ‘‘(B) in a manner that ensures that— holder that is— gible to receive payments under this section, ‘‘(i) the total of all individual acreage limi- ‘‘(A) based on a preliminary permit yield a State shall demonstrate to the Secretary tations is equal to the national acreage al- that is equal to the average yield during the that funding will be provided, during each 5- lotment, less the reserve provided under sub- 5 marketing years immediately preceding year period for which funding is provided section (h); and the marketing year for which the determina- under this section, for activities in each ‘‘(ii) the individual acreage limitation for a tion is made in the county where the holder county in the State that has been deter- marketing year bears the same ratio to the of the permit is authorized to plant flue- mined under paragraph (2) to have in excess individual acreage limitation for the pre- cured tobacco, as determined by the Sec- of $100,000 in income derived from the pro- vious marketing year as the ratio that the retary, on the basis of actual yields of farms duction of tobacco, in amounts that are at national acreage allotment for the market- in the county; and least equal to the product obtained by mul- ing year bears to the national acreage allot- ‘‘(B) adjusted by a weighted national yield tiplying— ment for the previous marketing year, sub- factor calculated by— (i) the ratio that the tobacco production ject to adjustments by the Secretary to ac- ‘‘(i) multiplying each preliminary permit income in the county determined under para- count for any reserve provided under sub- yield by the individual acreage limitation, graph (2) bears to the total tobacco produc- section (h). prior to adjustments for overmarketings, S6212 CONGRESSIONAL RECORD — SENATE June 11, 1998

undermarketings, or reductions required ‘‘(B) INDIVIDUAL ACREAGE LIMITATIONS.—In ‘‘(i) FORFEITURE.—Any person that fails to under subsection (i); and establishing the individual acreage limita- fully share in the risks of production under ‘‘(ii) dividing the sum of the products tion for the 1999 marketing year under this this paragraph shall forfeit an individual to- under clause (i) for all flue-cured individual section, the farm acreage allotment that was bacco production permit if, after notice and tobacco production permit holders by the na- allotted to a farm owned by a quota holder opportunity for a hearing, the appropriate tional acreage allotment. for whom the quota lessee or quota tenant county committee determines that the con- ‘‘(b) INITIAL ISSUANCE OF PERMITS.— was the principal producer of flue-cured to- ditions for forfeiture exist. ‘‘(1) TERMINATION OF FLUE-CURED MARKET- bacco during the 1997 marketing year shall ‘‘(ii) REALLOCATION.—The Secretary shall ING QUOTAS.—On the date of enactment of the be considered the individual acreage limita- add the authority to produce flue-cured to- National Tobacco Policy and Youth Smoking tion for the previous marketing year. bacco under the individual tobacco produc- Reduction Act, farm marketing quotas as ‘‘(C) INDIVIDUAL MARKETING LIMITATIONS.— tion permit forfeited under this subpara- provided under section 317 shall no longer be In establishing the individual marketing graph to the county production pool estab- in effect for flue-cured tobacco. limitation for the 1999 marketing year under lished under paragraph (8) for reallocation by this section, the individual marketing limi- ‘‘(2) ISSUANCE OF PERMITS TO QUOTA HOLD- the appropriate county committee. tation for the previous year for an individual ERS THAT WERE PRINCIPAL PRODUCERS.— ‘‘(D) NOTICE.—Notice of any determination described in this paragraph shall be cal- ‘‘(A) IN GENERAL.—By January 15, 1999, made by a county committee under subpara- culated by multiplying— each individual quota holder under section graph (C) shall be mailed, as soon as prac- ‘‘(i) the farm marketing quota that was al- 317 that was a principal producer of flue- ticable, to the person involved. lotted to a farm owned by a quota holder for cured tobacco during the 1998 marketing ‘‘(E) REVIEW.—If the person is dissatisfied whom the quota lessee or quota holder was year, as determined by the Secretary, shall with the determination, the person may re- the principal producer of flue-cured tobacco be issued an individual tobacco production quest, not later than 15 days after notice of during the 1997 marketing year, by permit under this section. the determination is received, a review of ‘‘(ii) the ratio that— ‘‘(B) NOTIFICATION.—The Secretary shall the determination by a local review commit- ‘‘(I) the sum of all flue-cured tobacco farm notify the holder of each permit of the indi- marketing quotas for the 1997 marketing tee under the procedures established under vidual acreage limitation and the individual year prior to adjusting for undermarketing section 363 for farm marketing quotas. marketing limitation applicable to the hold- and overmarketing; bears to ‘‘(7) COUNTY OF ORIGIN REQUIREMENT.—For er for each marketing year. ‘‘(II) the sum of all flue-cured tobacco farm the 1999 and each subsequent crop of flue- ‘‘(C) INDIVIDUAL ACREAGE LIMITATION FOR marketing quotas for the 1998 marketing cured tobacco, all tobacco produced pursuant 1999 MARKETING YEAR.—In establishing the in- year, after adjusting for undermarketing and to an individual tobacco production permit dividual acreage limitation for the 1999 mar- overmarketing. shall be produced in the same county in keting year under this section, the farm ‘‘(D) SPECIAL RULE FOR TENANT OF LEASED which was produced the tobacco produced acreage allotment that was allotted to a FLUE-CURED TOBACCO.—If the farm marketing during the 1997 marketing year pursuant to farm owned by the quota holder for the 1997 quota or farm acreage allotment of a quota the farm marketing quota or farm acreage marketing year shall be considered the indi- holder was produced pursuant to an agree- allotment on which the individual tobacco vidual acreage limitation for the previous ment under which a quota lessee rented land production permit is based. marketing year. from a quota holder and a quota tenant was ‘‘(8) COUNTY PRODUCTION POOL.— ‘‘(D) INDIVIDUAL MARKETING LIMITATION FOR the primary producer, as determined by the ‘‘(A) IN GENERAL.—The authority to 1999 MARKETING YEAR.—In establishing the in- Secretary, of flue-cured tobacco pursuant to produce flue-cured tobacco under an individ- dividual marketing limitation for the 1999 the farm marketing quota or farm acreage ual tobacco production permit that is for- marketing year under this section, the farm allotment, the farm marketing quota or feited, relinquished, or surrendered within a marketing quota that was allotted to a farm farm acreage allotment shall be divided pro- county may be reallocated by the appro- owned by the quota holder for the 1997 mar- portionately between the quota lessee and priate county committee to tobacco produc- keting year shall be considered the individ- quota tenant for purposes of issuing individ- ers located in the same county that apply to ual marketing limitation for the previous ual tobacco production permits under this the committee to produce flue-cured tobacco marketing year. paragraph. under the authority. ‘‘(3) QUOTA HOLDERS THAT WERE NOT PRIN- ‘‘(5) OPTION OF QUOTA LESSEE OR QUOTA TEN- ‘‘(B) PRIORITY.—In reallocating individual CIPAL PRODUCERS.— ANT TO RELINQUISH PERMIT.— tobacco production permits under this para- ‘‘(A) IN GENERAL.—Except as provided in ‘‘(A) IN GENERAL.—Each quota lessee or graph, a county committee shall provide a subparagraph (B), on approval through a ref- quota tenant that is issued an individual to- priority to— erendum under subsection (c)— bacco production permit under paragraph (4) ‘‘(i) an active tobacco producer that con- ‘‘(i) each person that was a quota holder shall be given the option of relinquishing the trols the authority to produce a quantity of under section 317 but that was not a prin- permit in exchange for payments made under flue-cured tobacco under an individual to- cipal producer of flue-cured tobacco during section 1021(e)(5) of the LEAF Act. bacco production permit that is equal to or the 1997 marketing year, as determined by ‘‘(B) NOTIFICATION.—A quota lessee or less than the average number of pounds of the Secretary, shall not be eligible to own a quota tenant that is issued an individual to- flue-cured tobacco that was produced by the permit; and bacco production permit shall give notifica- producer during each of the 1995 through 1997 ‘‘(ii) the Secretary shall not issue any per- tion of the intention to exercise the option marketing years, as determined by the Sec- mit during the 25-year period beginning on at such time and in such manner as the Sec- retary; and the date of enactment of this Act to any per- retary may require, but not later than 45 ‘‘(ii) a new tobacco producer. son that was a quota holder and was not the days after the permit is issued. ‘‘(C) CRITERIA.—Individual tobacco produc- principal producer of flue-cured tobacco dur- ‘‘(C) REALLOCATION OF PERMIT.—The Sec- tion permits shall be reallocated by the ap- ing the 1997 marketing year. retary shall add the authority to produce propriate county committee under this para- ‘‘(B) MEDICAL HARDSHIPS AND CROP DISAS- flue-cured tobacco under the individual to- graph in a fair and equitable manner after TERS.—Subparagraph (A) shall not apply to a bacco production permit relinquished under taking into consideration— person that would have been the principal this paragraph to the county production pool ‘‘(i) the experience of the producer; producer of flue-cured tobacco during the established under paragraph (8) for realloca- ‘‘(ii) the availability of land, labor, and 1997 marketing year but for a medical hard- tion by the appropriate county committee. equipment for the production of tobacco; ship or crop disaster that occurred during ‘‘(6) ACTIVE PRODUCER REQUIREMENT.— ‘‘(iii) crop rotation practices; and the 1997 marketing year. ‘‘(A) REQUIREMENT FOR SHARING RISK.—No ‘‘(iv) the soil and other physical factors af- ‘‘(C) ADMINISTRATION.—The Secretary shall individual tobacco production permit shall issue regulations— be issued to, or maintained by, a person that fecting the production of tobacco. ‘‘(i) defining the term ‘person’ for the pur- does not fully share in the risk of producing ‘‘(D) MEDICAL HARDSHIPS AND CROP DISAS- pose of this paragraph; and a crop of flue-cured tobacco. TERS.—Notwithstanding any other provision of this Act, the Secretary may issue an indi- ‘‘(ii) prescribing such rules as the Sec- ‘‘(B) CRITERIA FOR SHARING RISK.—For pur- retary determines are necessary to ensure a poses of this paragraph, a person shall be vidual tobacco production permit under this fair and reasonable application of the prohi- considered to have fully shared in the risk of paragraph to a producer that is otherwise in- bition established under this paragraph. production of a crop if— eligible for the permit due to a medical hard- ship or crop disaster that occurred during ‘‘(4) ISSUANCE OF PERMITS TO PRINCIPAL ‘‘(i) the investment of the person in the the 1997 marketing year. PRODUCERS OF FLUE-CURED TOBACCO.— production of the crop is not less than 100 ‘‘(A) IN GENERAL.—By January 15, 1999, percent of the costs of production associated ‘‘(c) REFERENDUM.— each individual quota lessee or quota tenant with the crop; ‘‘(1) ANNOUNCEMENT OF QUOTA AND ALLOT- (as defined in section 1002 of the LEAF Act) ‘‘(ii) the amount of the person’s return on MENT.—Not later than December 15, 1998, the that was the principal producer of flue-cured the investment is dependent solely on the Secretary pursuant to subsection (b) shall tobacco during the 1997 marketing year, as sale price of the crop; and determine and announce— determined by the Secretary, shall be issued ‘‘(iii) the person may not receive any of the ‘‘(A) the quantity of the national market- an individual tobacco production permit return before the sale of the crop. ing quota for flue-cured tobacco for the 1999 under this section. ‘‘(C) PERSONS NOT SHARING RISK.— marketing year; and June 11, 1998 CONGRESSIONAL RECORD — SENATE S6213

‘‘(B) the national acreage allotment and ‘‘(3) LIMITATION ON TILLABLE CROPLAND.— or individual marketing limitation for a national average yield goal for the 1999 crop The total acreage assigned to any farm quantity of tobacco, the individual acreage of flue-cured tobacco. under this subsection shall not exceed the limitation or individual marketing limita- ‘‘(2) SPECIAL REFERENDUM.—Not later than acreage of cropland on the farm. tion for the following marketing year shall 30 days after the announcement of the quan- ‘‘(g) PROHIBITION ON SALE OR LEASING OF be forfeited. tity of the national marketing quota in 2001, INDIVIDUAL TOBACCO PRODUCTION PERMITS.— ‘‘(j) MARKETING PENALTIES.— the Secretary shall conduct a special ref- ‘‘(1) IN GENERAL.—Except as provided in ‘‘(1) IN GENERAL.—When individual tobacco erendum of the tobacco production permit paragraphs (2) and (3), the Secretary shall production permits under this section are in holders that were the principal producers of not permit the sale and transfer, or lease and effect, provisions with respect to penalties flue-cured tobacco of the 1997 crop to deter- transfer, of an individual tobacco production for the marketing of excess tobacco and the mine whether the producers approve or op- permit issued under this section. other provisions contained in section 314 pose the continuation of individual tobacco ‘‘(2) TRANSFER TO DESCENDANTS.— shall apply in the same manner and to the production permits on an acreage-poundage ‘‘(A) DEATH.—In the case of the death of a same extent as they would apply under sec- basis as provided in this section for the 2002 person to whom an individual tobacco pro- tion 317(g) if farm marketing quotas were in through 2004 marketing years. duction permit has been issued under this effect. ‘‘(3) APPROVAL OF PERMITS.—If the Sec- section, the permit shall transfer to the sur- ‘‘(2) PRODUCTION ON OTHER FARMS.—If a pro- viving spouse of the person or, if there is no retary determines that more than 662⁄3 per- ducer falsely identifies tobacco as having cent of the producers voting in the special surviving spouse, to surviving direct de- been produced on or marketed from a farm referendum approve the establishment of in- scendants of the person. to which an individual acreage limitation or dividual tobacco production permits on an ‘‘(B) TEMPORARY INABILITY TO FARM.—In individual marketing limitation has been as- acreage-poundage basis— the case of the death of a person to whom an signed, future individual acreage limitations ‘‘(A) individual tobacco production permits individual tobacco production permit has and individual marketing limitations shall on an acreage-poundage basis as provided in been issued under this section and whose de- be forfeited.’’. this section shall be in effect for the 2002 scendants are temporarily unable to produce SEC. 1025. MODIFICATIONS IN FEDERAL TO- through 2004 marketing years; and a crop of tobacco, the Secretary may hold BACCO PROGRAMS. ‘‘(B) marketing quotas on an acreage- the license in the name of the descendants (a) PROGRAM REFERENDA.—Section 312(c) of poundage basis shall cease to be in effect for for a period of not more than 18 months. the Agricultural Adjustment Act of 1938 (7 ‘‘(3) VOLUNTARY TRANSFERS.—A person that the 2002 through 2004 marketing years. U.S.C. 1312(c)) is amended— is eligible to obtain an individual tobacco ‘‘(4) DISAPPROVAL OF PERMITS.—If individ- (1) by striking ‘‘(c) Within thirty’’ and in- production permit under this section may at ual tobacco production permits on an acre- serting the following: any time transfer all or part of the permit to age-poundage basis are not approved by more ‘‘(c) REFERENDA ON QUOTAS.— the person’s spouse or direct descendants ‘‘(1) IN GENERAL.—Not later than 30’’; and than 662⁄3 percent of the producers voting in that are actively engaged in the production the referendum, no marketing quotas on an (2) by adding at the end the following: of tobacco. acreage-poundage basis shall continue in ef- ‘‘(2) REFERENDA ON PROGRAM CHANGES.— ‘‘(h) RESERVE.— fect that were proclaimed under section 317 ‘‘(A) IN GENERAL.—In the case of any type ‘‘(1) IN GENERAL.—For each marketing year prior to the referendum. of tobacco for which marketing quotas are in for which individual tobacco production per- effect, on the receipt of a petition from more ‘‘(5) APPLICABLE MARKETING YEARS.—If in- mits are in effect under this section, the Sec- dividual tobacco production permits have than 5 percent of the producers of that type retary may establish a reserve from the na- of tobacco in a State, the Secretary shall been made effective for flue-cured tobacco on tional marketing quota in a quantity equal an acreage-poundage basis pursuant to this conduct a statewide referendum on any pro- to not more than 1 percent of the national posal related to the lease and transfer of to- subsection, the Secretary shall, not later marketing quota to be available for— than December 15 of any future marketing bacco quota within a State requested by the ‘‘(A) making corrections of errors in indi- petition that is authorized under this part. year, announce a national marketing quota vidual acreage limitations and individual for that type of tobacco for the next 3 suc- ‘‘(B) APPROVAL OF PROPOSALS.—If a major- marketing limitations; ity of producers of the type of tobacco in the ceeding marketing years if the marketing ‘‘(B) adjusting inequities; and year is the last year of 3 consecutive years State approve a proposal in a referendum ‘‘(C) establishing individual tobacco pro- conducted under subparagraph (A), the Sec- for which individual tobacco production per- duction permits for new tobacco producers mits previously proclaimed will be in effect. retary shall implement the proposal in a (except that not less than two-thirds of the manner that applies to all producers and ‘‘(d) ANNUAL ANNOUNCEMENT OF NATIONAL reserve shall be for establishing such permits quota holders of that type of tobacco in the MARKETING QUOTA.—The Secretary shall de- for new tobacco producers). termine and announce the national market- State.’’. ‘‘(2) ELIGIBLE PERSONS.—To be eligible for a (b) PURCHASE REQUIREMENTS.—Section 320B ing quota, national acreage allotment, and new individual tobacco production permit, a of the Agricultural Adjustment Act of 1938 (7 national average yield goal for the second producer must not have been the principal U.S.C. 1314h) is amended— and third marketing years of any 3-year pe- producer of tobacco during the immediately (1) in subsection (c)— riod for which individual tobacco production preceding 5 years. (A) by striking ‘‘(c) The amount’’ and in- permits are in effect on or before the Decem- ‘‘(3) APPORTIONMENT FOR NEW PRODUCERS.— serting ‘‘(c) AMOUNT OF PENALTY.—For the ber 15 immediately preceding the beginning The part of the reserve held for apportion- 1998 and subsequent marketing years, the of the marketing year to which the quota, ment to new individual tobacco producers amount’’; and allotment, and goal apply. shall be allotted on the basis of— (B) by striking paragraph (1) and inserting ‘‘(e) ANNUAL ANNOUNCEMENT OF INDIVIDUAL ‘‘(A) land, labor, and equipment available the following: TOBACCO PRODUCTION PERMITS.—If a national for the production of tobacco; ‘‘(1) 105 percent of the average market marketing quota, national acreage allot- ‘‘(B) crop rotation practices; price for the type of tobacco involved during ment, and national average yield goal are de- ‘‘(C) soil and other physical factors affect- the preceding marketing year; and’’. termined and announced, the Secretary shall ing the production of tobacco; and (c) ELIMINATION OF TOBACCO MARKETING provide for the determination of individual ‘‘(D) the past tobacco-producing experience ASSESSMENT.— tobacco production permits, individual acre- of the producer. (1) IN GENERAL.—Section 106 of the Agricul- age limitations, and individual marketing ‘‘(4) PERMIT YIELD.—The permit yield for tural Act of 1949 (7 U.S.C. 1445) is amended by limitations under this section for the crop any producer for which a new individual to- striking subsection (g). and marketing year covered by the deter- bacco production permit is established shall (2) CONFORMING AMENDMENT.—Section minations. be determined on the basis of available pro- 422(c) of the Uruguay Round Agreements Act ‘‘(f) ASSIGNMENT OF TOBACCO PRODUCTION ductivity data for the land involved and (Public Law 103–465; 7 U.S.C. 1445 note) is PERMITS.— yields for similar farms in the same county. amended by striking ‘‘section 106(g), 106A, or ‘‘(1) LIMITATION TO SAME COUNTY.—Each in- ‘‘(i) PENALTIES.— 106B of the Agricultural Act of 1949 (7 U.S.C. dividual tobacco production permit holder ‘‘(1) PRODUCTION ON OTHER FARMS.—If any 1445(g), 1445–1, or 1445–2)’’ and inserting ‘‘sec- shall assign the individual acreage limita- quantity of tobacco is marketed as having tion 106A or 106B of the Agricultural Act of tion and individual marketing limitation to been produced under an individual acreage 1949 (7 U.S.C. 1445–1, 1445–2)’’. 1 or more farms located within the county of limitation or individual marketing limita- (d) ADJUSTMENT FOR LAND RENTAL COSTS.— origin of the individual tobacco production tion assigned to a farm but was produced on Section 106 of the Agricultural Act of 1949 (7 permit. a different farm, the individual acreage limi- U.S.C. 1445) is amended by adding at the end ‘‘(2) FILING WITH COUNTY COMMITTEE.—The tation or individual marketing limitation the following: assignment of an individual acreage limita- for the following marketing year shall be ‘‘(h) ADJUSTMENT FOR LAND RENTAL tion and individual marketing limitation forfeited. COSTS.—For each of the 1999 and 2000 mar- shall not be effective until evidence of the ‘‘(2) FALSE REPORT.—If a person to which keting years for flue-cured tobacco, after assignment, in such form as required by the an individual tobacco production permit is consultation with producers, State farm or- Secretary, is filed with and determined by issued files, or aids or acquiesces in the fil- ganizations and cooperative associations, the the county committee for the county in ing of, a false report with respect to the as- Secretary shall make an adjustment in the which the farm involved is located. signment of an individual acreage limitation price support level for flue-cured tobacco S6214 CONGRESSIONAL RECORD — SENATE June 11, 1998 equal to the annual change in the average the workers’ separation or threat of separa- (C) Tobacco worker readjustment allow- cost per pound to flue-cured producers, as de- tion and to the decline in the sales or pro- ances, which shall be provided in the same termined by the Secretary, under agree- duction of the firm or subdivision. manner as trade readjustment allowances ments through which producers rent land to (2) DEFINITION OF CONTRIBUTED IMPOR- are provided under part I of subchapter B of produce flue-cured tobacco.’’. TANTLY.—In paragraph (1)(B), the term ‘‘con- chapter 2 of title II of the Trade Act of 1974 (e) FIRE-CURED AND DARK AIR-CURED TO- tributed importantly’’ means a cause that is (19 U.S.C. 2291 et seq.), except that— BACCO PROGRAMS.— important but not necessarily more impor- (i) the provisions of sections 231(a)(5)(C) (1) LIMITATION ON TRANSFERS.—Section tant than any other cause. and 231(c) of that Act (19 U.S.C. 2291(a)(5)(C), 318(g) of the Agricultural Adjustment Act of (3) REGULATIONS.—The Secretary shall 2291(c)), authorizing the payment of trade re- 1938 (7 U.S.C. 13l4d(g)) is amended— issue regulations relating to the application adjustment allowances on a finding that it is (A) by striking ‘‘ten’’ and inserting ‘‘30’’; of the criteria described in paragraph (1) in not feasible or appropriate to approve a and making preliminary findings under sub- training program for a worker, shall not be (B) by inserting ‘‘during any crop year’’ section (b) and determinations under sub- applicable to payment of allowances under after ‘‘transferred to any farm’’. section (c). this section; and (2) LOSS OF ALLOTMENT OR QUOTA THROUGH (b) PRELIMINARY FINDINGS AND BASIC AS- (ii) notwithstanding the provisions of sec- UNDERPLANTING.—Section 318 of the Agricul- SISTANCE.— tion 233(b) of that Act (19 U.S.C. 2293(b)), in tural Adjustment Act of 1938 (7 U.S.C. 1314d) (1) FILING OF PETITIONS.—A petition for cer- order for a worker to qualify for tobacco re- is amended by adding at the end the follow- tification of eligibility to apply for adjust- adjustment allowances under this section, ing: ment assistance under this section may be the worker shall be enrolled in a training ‘‘(k) LOSS OF ALLOTMENT OR QUOTA filed by a group of workers (including work- program approved by the Secretary of the THROUGH UNDERPLANTING.—Effective for the ers in any firm or subdivision of a firm in- type described in section 236(a) of that Act 1999 and subsequent marketing years, no volved in the manufacture, processing, or (19 U.S.C. 2296(a)) by the later of— acreage allotment or acreage-poundage warehousing of tobacco or tobacco products) (I) the last day of the 16th week of the quota, other than a new marketing quota, or by their certified or recognized union or worker’s initial unemployment compensa- shall be established for a farm on which no other duly authorized representative with tion benefit period; or fire-cured or dark air-cured tobacco was the Governor of the State in which the work- (II) the last day of the 6th week after the planted or considered planted during at least ers’ firm or subdivision thereof is located. week in which the Secretary issues a certifi- (2) FINDINGS AND ASSISTANCE.—On receipt 2 of the 3 crop years immediately preceding cation covering the worker. the crop year for which the acreage allot- of a petition under paragraph (1), the Gov- ernor shall— In cases of extenuating circumstances relat- ment or acreage-poundage quota would oth- ing to enrollment of a worker in a training erwise be established.’’. (A) notify the Secretary that the Governor has received the petition; program under this section, the Secretary (f) EXPANSION OF TYPES OF TOBACCO SUB- may extend the time for enrollment for a pe- JECT TO NO NET COST ASSESSMENT.— (B) within 10 days after receiving the peti- tion— riod of not to exceed 30 days. (1) NO NET COST TOBACCO FUND.—Section (i) make a preliminary finding as to wheth- (D) Job search allowances of the type de- 106A(d)(1)(A) of the Agricultural Act of 1949 scribed in section 237 of the Trade Act of 1974 (7 U.S.C. 1445–1(d)(1)(A)) is amended— er the petition meets the criteria described in subsection (a)(1); and (19 U.S.C. 2297). (A) in clause (ii), by inserting after ‘‘Bur- (E) Relocation allowances of the type de- ley quota tobacco’’ the following: ‘‘and fire- (ii) transmit the petition, together with a statement of the finding under clause (i) and scribed in section 238 of the Trade Act of 1974 cured and dark air-cured quota tobacco’’; (19 U.S.C. 2298). and reasons for the finding, to the Secretary for (e) INELIGIBILITY OF INDIVIDUALS RECEIVING (B) in clause (iii)— action under subsection (c); and PAYMENTS FOR LOST TOBACCO QUOTA.—No (i) in the matter preceding subclause (I), by (C) if the preliminary finding under sub- paragraph (B)(i) is affirmative, ensure that benefits or services may be provided under striking ‘‘Flue-cured or Burley tobacco’’ and this section to any individual who has re- inserting ‘‘each kind of tobacco for which rapid response and basic readjustment serv- ices authorized under other Federal laws are ceived payments for lost tobacco quota price support is made available under this under section 1021. Act, and each kind of like tobacco,’’; and made available to the workers. (c) REVIEW OF PETITIONS BY SECRETARY; (f) FUNDING.—Of the amounts appropriated (ii) by striking subclause (II) and inserting CERTIFICATIONS.— to carry out this title, the Secretary may the following: (1) IN GENERAL.—The Secretary, within 30 use not to exceed $25,000,000 for each of fiscal ‘‘(II) the sum of the amount of the per days after receiving a petition under sub- years 1999 through 2008 to provide assistance pound producer contribution and purchaser section (b)(2)(B)(ii), shall determine whether under this section. assessment (if any) for the kind of tobacco the petition meets the criteria described in (g) EFFECTIVE DATE.—This section shall payable under clauses (i) and (ii); and’’. subsection (a)(1). On a determination that take effect on the date that is the later of— (2) NO NET COST TOBACCO ACCOUNT.—Section the petition meets the criteria, the Sec- (1) October l, 1998; or 106B(d)(1) of the Agricultural Act of 1949 (7 retary shall issue to workers covered by the (2) the date of enactment of this Act. U.S.C. 1445–2(d)(1)) is amended— petition a certification of eligibility to apply (h) TERMINATION DATE.—No assistance, (A) in subparagraph (B), by inserting after for the assistance described in subsection (d). vouchers, allowances, or other payments ‘‘Burley quota tobacco’’ the following: ‘‘and (2) DENIAL OF CERTIFICATION.—On the de- may be provided under this section after the fire-cured and dark air-cured tobacco’’; and nial of a certification with respect to a peti- date that is the earlier of— (B) in subparagraph (C), by striking ‘‘Flue- tion under paragraph (1), the Secretary shall (1) the date that is 10 years after the effec- cured and Burley tobacco’’ and inserting review the petition in accordance with the tive date of this section under subsection (g); ‘‘each kind of tobacco for which price sup- requirements of other applicable assistance or port is made available under this Act, and programs to determine if the workers may be (2) the date on which legislation establish- each kind of like tobacco,’’. certified under the other programs. ing a program providing dislocated workers Subtitle C—Farmer and Worker Transition (d) COMPREHENSIVE ASSISTANCE.— with comprehensive assistance substantially Assistance (1) IN GENERAL.—Workers covered by a cer- similar to the assistance provided by this SEC. 1031. TOBACCO WORKER TRANSITION PRO- tification issued by the Secretary under sub- section becomes effective. GRAM. section (c)(1) shall be provided with benefits SEC. 1032. FARMER OPPORTUNITY GRANTS. (a) GROUP ELIGIBILITY REQUIREMENTS.— and services described in paragraph (2) in the Part A of title IV of the Higher Education (1) CRITERIA.—A group of workers (includ- same manner and to the same extent as Act of 1965 (20 U.S.C. 1070 et seq.) is amended ing workers in any firm or subdivision of a workers covered under a certification under by adding at the end the following: firm involved in the manufacture, process- subchapter A of title II of the Trade Act of ‘‘Subpart 9—Farmer Opportunity Grants ing, or warehousing of tobacco or tobacco 1974 (19 U.S.C. 2271 et seq.), except that the products) shall be certified as eligible to total amount of payments under this section ‘‘SEC. 420D. STATEMENT OF PURPOSE. apply for adjustment assistance under this for any fiscal year shall not exceed ‘‘It is the purpose of this subpart to assist section pursuant to a petition filed under $25,000,000. in making available the benefits of post- subsection (b) if the Secretary of Labor de- (2) BENEFITS AND SERVICES.—The benefits secondary education to eligible students (de- termines that a significant number or pro- and services described in this paragraph are termined in accordance with section 420F) in portion of the workers in the workers’ firm the following: institutions of higher education by providing or an appropriate subdivision of the firm (A) Employment services of the type de- farmer opportunity grants to all eligible stu- have become totally or partially separated, scribed in section 235 of the Trade Act of 1974 dents. or are threatened to become totally or par- (19 U.S.C. 2295). ‘‘SEC. 420E. PROGRAM AUTHORITY; AMOUNT AND tially separated, and— (B) Training described in section 236 of the DETERMINATIONS; APPLICATIONS. (A) the sales or production, or both, of the Trade Act of 1974 (19 U.S.C. 2296), except that ‘‘(a) PROGRAM AUTHORITY AND METHOD OF firm or subdivision have decreased abso- notwithstanding the provisions of section DISTRIBUTION.— lutely; and 236(a)(2)(A) of that Act, the total amount of ‘‘(1) PROGRAM AUTHORITY.—From amounts (B) the implementation of the national to- payments for training under this section for made available under section 1011(d)(5) of the bacco settlement contributed importantly to any fiscal year shall not exceed $12,500,000. LEAF Act, the Secretary, during the period June 11, 1998 CONGRESSIONAL RECORD — SENATE S6215 beginning July 1, 1999, and ending September ‘‘(A) exclude from eligibility courses of ‘‘(4) not owe a refund on grants previously 30, 2024, shall pay to each eligible institution study that are noncredit or remedial in na- received at any institution of higher edu- such sums as may be necessary to pay to ture and that are determined by the institu- cation under this title, or be in default on each eligible student (determined in accord- tion to be necessary to help the student be any loan from a student loan fund at any in- ance with section 420F) for each academic prepared for the pursuit of a first under- stitution provided for in part D, or a loan year during which that student is in attend- graduate baccalaureate degree or certificate made, insured, or guaranteed by the Sec- ance at an institution of higher education, as or, in the case of courses in English language retary under this title for attendance at any an undergraduate, a farmer opportunity instruction, to be necessary to enable the institution; grant in the amount for which that student student to utilize already existing knowl- ‘‘(5) file with the institution of higher edu- is eligible, as determined pursuant to sub- edge, training, or skills; and cation that the student intends to attend, or section (b). Not less than 85 percent of the ‘‘(B) exclude from eligibility programs of is attending, a document, that need not be sums shall be advanced to eligible institu- study abroad that are approved for credit by notarized, but that shall include— tions prior to the start of each payment pe- the home institution at which the student is ‘‘(A) a statement of educational purpose riod and shall be based on an amount re- enrolled. stating that the money attributable to the quested by the institution as needed to pay ‘‘(3) PROHIBITION.—No student is entitled to grant will be used solely for expenses related eligible students, except that this sentence receive farmer opportunity grant payments to attendance or continued attendance at shall not be construed to limit the authority concurrently from more than 1 institution or the institution; and of the Secretary to place an institution on a from the Secretary and an institution. ‘‘(B) the student’s social security number; reimbursement system of payment. ‘‘(d) APPLICATIONS FOR GRANTS.— and ‘‘(2) CONSTRUCTION.—Nothing in this sec- ‘‘(1) IN GENERAL.—The Secretary shall from ‘‘(6) be a citizen of the United States. tion shall be construed to prohibit the Sec- time to time set dates by which students ‘‘(b) TOBACCO FARM FAMILIES.— retary from paying directly to students, in shall file applications for grants under this ‘‘(1) IN GENERAL.—For the purpose of sub- advance of the beginning of the academic subpart. The filing of applications under this section (a)(1), a student is a member of a to- term, an amount for which the students are subpart shall be coordinated with the filing bacco farm family if during calendar year eligible, in cases where the eligible institu- of applications under section 401(c). 1998 the student was— tion elects not to participate in the disburse- ‘‘(2) INFORMATION AND ASSURANCES.—Each ‘‘(A) an individual who— ment system required by paragraph (1). student desiring a grant for any year shall ‘‘(i) is a participating tobacco producer (as ‘‘(3) DESIGNATION.—Grants made under this file with the Secretary an application for the defined in section 1002 of the LEAF Act) who subpart shall be known as ‘farmer oppor- grant containing such information and as- is a principal producer of tobacco on a farm; tunity grants’. surances as the Secretary may deem nec- or ‘‘(b) AMOUNT OF GRANTS.— essary to enable the Secretary to carry out ‘‘(ii) is otherwise actively engaged in the ‘‘(1) AMOUNTS.— the Secretary’s functions and responsibil- production of tobacco; ‘‘(A) IN GENERAL.—The amount of the grant ities under this subpart. ‘‘(B) a spouse, son, daughter, stepson, or for a student eligible under this subpart ‘‘(e) DISTRIBUTION OF GRANTS TO STU- stepdaughter of an individual described in shall be— DENTS.—Payments under this section shall subparagraph (A); or ‘‘(i) $1,700 for each of the academic years be made in accordance with regulations pro- ‘‘(C) an individual who was a dependent 1999–2000 through 2003–2004; mulgated by the Secretary for such purpose, (within the meaning of section 152 of the In- ‘‘(ii) $2,000 for each of the academic years in such manner as will best accomplish the ternal Revenue Code of 1986) of an individual 2004–2005 through 2008–2009; purpose of this section. Any disbursement al- described in subparagraph (A). ‘‘(iii) $2,300 for each of the academic years lowed to be made by crediting the student’s ‘‘(2) ADMINISTRATION.—On request, the Sec- 2009–2010 through 2013–2014; account shall be limited to tuition and fees retary of Agriculture shall provide to the ‘‘(iv) $2,600 for each of the academic years and, in the case of institutionally owned Secretary such information as is necessary 2014–2015 through 2018–2019; and housing, room and board. The student may to carry out this subsection. ‘‘(v) $2,900 for each of the academic years elect to have the institution provide other ‘‘(c) SATISFACTORY PROGRESS.— 2019–2020 through 2023–2024. such goods and services by crediting the stu- ‘‘(1) IN GENERAL.—For the purpose of sub- ‘‘(B) PART-TIME RULE.—In any case where a dent’s account. section (a)(3), a student is maintaining satis- student attends an institution of higher edu- ‘‘(f) INSUFFICIENT FUNDING.—If, for any fis- factory progress if— cation on less than a full-time basis (includ- cal year, the funds made available to carry ‘‘(A) the institution at which the student is ing a student who attends an institution of out this subpart are insufficient to satisfy in attendance reviews the progress of the higher education on less than a half-time fully all grants for students determined to be student at the end of each academic year, or basis) during any academic year, the amount eligible under section 420F, the amount of its equivalent, as determined by the institu- of the grant for which that student is eligi- the grant provided under subsection (b) shall tion; and ble shall be reduced in proportion to the de- be reduced on a pro rata basis among all eli- ‘‘(B) the student has at least a cumulative gree to which that student is not so attend- gible students. C average or its equivalent, or academic ing on a full-time basis, in accordance with ‘‘(g) TREATMENT OF INSTITUTIONS AND STU- standing consistent with the requirements a schedule of reductions established by the DENTS UNDER OTHER LAWS.—Any institution for graduation, as determined by the institu- Secretary for the purposes of this subpara- of higher education that enters into an tion, at the end of the second such academic graph, computed in accordance with this agreement with the Secretary to disburse to year. subpart. The schedule of reductions shall be students attending that institution the ‘‘(2) SPECIAL RULE.—Whenever a student established by regulation and published in amounts those students are eligible to re- fails to meet the eligibility requirements of the Federal Register. ceive under this subpart shall not be deemed, subsection (a)(3) as a result of the applica- ‘‘(2) MAXIMUM.—No grant under this sub- by virtue of the agreement, to be a contrac- tion of this subsection and subsequent to part shall exceed the cost of attendance (as tor maintaining a system of records to ac- that failure the student has academic stand- described in section 472) at the institution at complish a function of the Secretary. Recipi- ing consistent with the requirements for which that student is in attendance. If, with ents of farmer opportunity grants shall not graduation, as determined by the institu- respect to any student, it is determined that be considered to be individual grantees for tion, for any grading period, the student the amount of a grant exceeds the cost of at- purposes of the Drug-Free Workplace Act of may, subject to this subsection, again be eli- tendance for that year, the amount of the 1988 (41 U.S.C. 701 et seq.). gible under subsection (a)(3) for a grant grant shall be reduced to an amount equal to ‘‘SEC. 420F. STUDENT ELIGIBILITY. under this subpart. the cost of attendance at the institution. ‘‘(a) IN GENERAL.—In order to receive any ‘‘(3) WAIVER.—Any institution of higher ‘‘(3) PROHIBITION.—No grant shall be award- grant under this subpart, a student shall— education at which the student is in attend- ed under this subpart to any individual who ‘‘(1) be a member of a tobacco farm family ance may waive paragraph (1) or (2) for is incarcerated in any Federal, State, or in accordance with subsection (b); undue hardship based on— local penal institution. ‘‘(2) be enrolled or accepted for enrollment ‘‘(A) the death of a relative of the student; ‘‘(c) PERIOD OF ELIGIBILITY FOR GRANTS.— in a degree, certificate, or other program (in- ‘‘(B) the personal injury or illness of the ‘‘(1) IN GENERAL.—The period during which cluding a program of study abroad approved student; or a student may receive grants shall be the pe- for credit by the eligible institution at which ‘‘(C) special circumstances as determined riod required for the completion of the first the student is enrolled) leading to a recog- by the institution. undergraduate baccalaureate course of study nized educational credential at an institu- ‘‘(d) STUDENTS WHO ARE NOT SECONDARY being pursued by that student at the institu- tion of higher education that is an eligible SCHOOL GRADUATES.—In order for a student tion at which the student is in attendance, institution in accordance with section 487, who does not have a certificate of graduation except that any period during which the stu- and not be enrolled in an elementary or sec- from a school providing secondary education, dent is enrolled in a noncredit or remedial ondary school; or the recognized equivalent of the certifi- course of study as described in paragraph (2) ‘‘(3) if the student is presently enrolled at cate, to be eligible for any assistance under shall not be counted for the purpose of this an institution of higher education, be main- this subpart, the student shall meet either 1 paragraph. taining satisfactory progress in the course of of the following standards: ‘‘(2) CONSTRUCTION.—Nothing in this sec- study the student is pursuing in accordance ‘‘(1) EXAMINATION.—The student shall take tion shall be construed to— with subsection (c); an independently administered examination S6216 CONGRESSIONAL RECORD — SENATE June 11, 1998

and shall achieve a score, specified by the vided by a student to an eligible institution (3) QUOTA LESSEE.—The term ‘‘quota les- Secretary, demonstrating that the student under subsection (a)(5)(B) and shall enforce see’’ means— can benefit from the education or training the following conditions: (A) a producer that owns a farm that pro- being offered. The examination shall be ap- ‘‘(1) PENDING VERIFICATION.—Except as pro- duced tobacco pursuant to a lease and trans- proved by the Secretary on the basis of com- vided in paragraphs (2) and (3), an institution fer to that farm of all or part of a tobacco pliance with such standards for development, shall not deny, reduce, delay, or terminate a farm marketing quota or farm acreage allot- administration, and scoring as the Secretary student’s eligibility for assistance under this ment established under the Agricultural Ad- may prescribe in regulations. subpart because social security number ver- justment Act of 1938 (7 U.S.C. 1281 et seq.) for ‘‘(2) DETERMINATION.—The student shall be ification is pending. any of the 1995, 1996, or 1997 crop years; or determined as having the ability to benefit ‘‘(2) DENIAL OR TERMINATION.—If there is a (B) a producer that rented land from a from the education or training in accordance determination by the Secretary that the so- farm operator to produce tobacco under a to- with such process as the State shall pre- cial security number provided to an eligible bacco farm marketing quota or farm acreage scribe. Any such process described or ap- institution by a student is incorrect, the in- allotment established under the Agricultural proved by a State for the purposes of this stitution shall deny or terminate the stu- Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) section shall be effective 6 months after the dent’s eligibility for any grant under this for any of the 1995, 1996, or 1997 crop years. date of submission to the Secretary unless subpart until such time as the student pro- (4) QUOTA TENANT.—The term ‘‘quota ten- the Secretary disapproves the process. In de- vides documented evidence of a social secu- ant’’ means a producer that— termining whether to approve or disapprove rity number that is determined by the insti- (A) is the principal producer, as deter- the process, the Secretary shall take into ac- tution to be correct. mined by the Secretary, of tobacco on a farm count the effectiveness of the process in ena- ‘‘(3) CONSTRUCTION.—Nothing in this sub- where tobacco is produced pursuant to a to- bling students without secondary school di- section shall be construed to permit the Sec- bacco farm marketing quota or farm acreage plomas or the recognized equivalent to bene- retary to take any compliance, disallowance, allotment established under the Agricultural fit from the instruction offered by institu- penalty, or other regulatory action against— Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) tions utilizing the process, and shall also ‘‘(A) any institution of higher education for any of the 1995, 1996, or 1997 crop years; take into account the cultural diversity, eco- with respect to any error in a social security and nomic circumstances, and educational prepa- number, unless the error was a result of (B) is not a quota holder or quota lessee. ration of the populations served by the insti- fraud on the part of the institution; or (5) SECRETARY.—The term ‘‘Secretary’’ tutions. ‘‘(B) any student with respect to any error means— ‘‘(e) SPECIAL RULE FOR CORRESPONDENCE in a social security number, unless the error (A) in subtitles A and B, the Secretary of COURSES.—A student shall not be eligible to was a result of fraud on the part of the stu- Agriculture; and receive a grant under this subpart for a cor- dent.’’. (B) in section 1031, the Secretary of Labor. respondence course unless the course is part Subtitle D—Immunity (6) TOBACCO PRODUCT IMPORTER.—The term of a program leading to an associate, bach- ‘‘tobacco product importer’’ has the meaning elor, or graduate degree. SEC. 1041. GENERAL IMMUNITY FOR TOBACCO given the term ‘‘importer’’ in section 5702 of ‘‘(f) COURSES OFFERED THROUGH TELE- PRODUCERS AND TOBACCO WARE- HOUSE OWNERS. the Internal Revenue Code of 1986. COMMUNICATIONS.— (7) TOBACCO PRODUCT MANUFACTURER.— ‘‘(1) RELATION TO CORRESPONDENCE Notwithstanding any other provision of this title, a participating tobacco producer, (A) IN GENERAL.—The term ‘‘tobacco prod- COURSES.—A student enrolled in a course of uct manufacturer’’ has the meaning given instruction at an eligible institution of high- tobacco-related growers association, or to- bacco warehouse owner or employee may not the term ‘‘manufacturer of tobacco prod- er education (other than an institute or ucts’’ in section 5702 of the Internal Revenue school that meets the definition in section be subject to liability in any Federal or State court for any cause of action resulting Code of 1986. 521(4)(C) of the Carl D. Perkins Vocational (B) EXCLUSION.—The term ‘‘tobacco prod- and Applied Technology Education Act (20 from the failure of any tobacco product man- ufacturer, distributor, or retailer to comply uct manufacturer’’ does not include a person U.S.C. 2471(4)(C))) that is offered in whole or that manufactures cigars or pipe tobacco. in part through telecommunications and with the National Tobacco Policy and Youth Smoking Reduction Act. (8) TOBACCO WAREHOUSE OWNER.—The term leads to a recognized associate, bachelor, or ‘‘tobacco warehouse owner’’ means a ware- graduate degree conferred by the institution Subtitle E—Applicability houseman that participated in an auction shall not be considered to be enrolled in cor- SEC. 1051. Notwithstanding any other pro- market (as defined in the first section of the respondence courses unless the total amount vision of law, Title XV shall have no force Tobacco Inspection Act (7 U.S.C. 511)) during of telecommunications and correspondence and effect. the 1998 marketing year. courses at the institution equals or exceeds Subtitle F—Effective Date (9) FLUE-CURED TOBACCO.—The term ‘‘flue- 50 percent of the courses. cured tobacco’’ includes type 21 and type 37 SEC. 1061. The provisions of this title shall ‘‘(2) RESTRICTION OR REDUCTIONS OF FINAN- tobacco. CIAL AID.—A student’s eligibility to receive a be effective one day after the enactment of grant under this subpart may be reduced if a this Act. Subtitle A—Tobacco Community financial aid officer determines under the Revitalization discretionary authority provided in section FORD (AND OTHERS) AMENDMENT SEC. 1011. AUTHORIZATION OF APPROPRIATIONS. 479A that telecommunications instruction NO. 2694 There are appropriated and transferred to results in a substantially reduced cost of at- (Ordered to lie on the table.) the Secretary for each fiscal year such tendance to the student. amounts from the National Tobacco Trust ‘‘(3) DEFINITION.—For the purposes of this Mr. FORD (for himself, Mr. HOL- Fund established by section 401, other than subsection, the term ‘telecommunications’ LINGS, and Mr. ROBB) submitted an from amounts in the State Litigation Settle- means the use of television, audio, or com- amendment intended to be proposed by ment Account, as may be necessary to carry puter transmission, including open broad- them to amendment No. 2501 proposed out the provisions of this title. cast, closed circuit, cable, microwave, or sat- by Mr. LUGAR to the bill, S. 1415, supra; SEC. 1012. EXPENDITURES. ellite, audio conferencing, computer con- as follows: ferencing, or video cassettes or discs, except The Secretary is authorized, subject to ap- that the term does not include a course that In lieu of the matter proposed to be in- propriations, to make payments under— is delivered using video cassette or disc re- serted, insert the following: (1) section 1021 for payments for lost to- cordings at the institution and that is not TITLE X—LONG-TERM ECONOMIC bacco quota for each of fiscal years 1999 delivered in person to other students of that ASSISTANCE FOR FARMERS through 2023, but not to exceed $1,650,000,000 for any fiscal year except to the extent the institution. SEC. 1001. SHORT TITLE. ‘‘(g) STUDY ABROAD.—Nothing in this sub- payments are made in accordance with sub- This title may be cited as the ‘‘Long-Term part shall be construed to limit or otherwise section (d)(12) or (e)(9) of section 1021; Economic Assistance for Farmers Act’’ or prohibit access to study abroad programs ap- (2) section 1022 for industry payments for the ‘‘LEAF Act’’. proved by the home institution at which a all costs of the Department of Agriculture student is enrolled. An otherwise eligible SEC. 1002. DEFINITIONS. associated with the production of tobacco; student who is engaged in a program of In this title: (3) section 1023 for tobacco community eco- study abroad approved for academic credit (1) PARTICIPATING TOBACCO PRODUCER.—The nomic development grants, but not to ex- by the home institution at which the student term ‘‘participating tobacco producer’’ ceed— is enrolled shall be eligible to receive a grant means a quota holder, quota lessee, or quota (A) $375,000,000 for each of fiscal years 1999 under this subpart, without regard to wheth- tenant. through 2008, less any amount required to be er the study abroad program is required as (2) QUOTA HOLDER.—The term ‘‘quota hold- paid under section 1022 for the fiscal year; part of the student’s degree program. er’’ means an owner of a farm on January 1, and ‘‘(h) VERIFICATION OF SOCIAL SECURITY 1998, for which a tobacco farm marketing (B) $450,000,000 for each of fiscal year 2009 NUMBER.—The Secretary, in cooperation quota or farm acreage allotment was estab- through 2023, less any amount required to be with the Commissioner of Social Security, lished under the Agricultural Adjustment paid under section 1022 during the fiscal shall verify any social security number pro- Act of 1938 (7 U.S.C. 1281 et seq.). year; June 11, 1998 CONGRESSIONAL RECORD — SENATE S6217

(4) section 1031 for assistance provided (4) QUOTA TENANTS.—The base quota level quota or farm acreage allotment of the quota under the tobacco worker transition pro- for a quota tenant shall be equal to the sum holder under paragraph (2). gram, but not to exceed $25,000,000 for any of— (B) AMOUNT.—The amount of a payment fiscal year; and (A) 50 percent of the average number of made to a quota holder described in subpara- (5) subpart 9 of part A of title IV of the pounds of tobacco quota established for a graph (A) for a marketing year shall equal Higher Education Act of 1965 for farmer op- farm for the 1995 through 1997 marketing 1⁄10 of the lifetime limitation established portunity grants, but not to exceed— years— under subparagraph (E). (A) $42,500,000 for each of the academic (i) that was owned by a quota holder; and (C) TIMING.—The Secretary shall begin years 1999–2000 through 2003–2004; (ii) for which the quota tenant was the making annual payments under this para- (B) $50,000,000 for each of the academic principal producer of the tobacco on the graph for the marketing year in which the years 2004–2005 through 2008–2009; farm; and farm marketing quota or farm acreage allot- (C) $57,500,000 for each of the academic (B) 25 percent of the average number of ment is relinquished. years 2009–2010 through 2013–2014; pounds of tobacco quota for the 1995 through (D) ADDITIONAL PAYMENTS.—The Secretary (D) $65,000,000 for each of the academic 1997 marketing years— may increase annual payments under this years 2014–2015 through 2018–2019; and (i)(I) that was leased and transferred to a paragraph in accordance with paragraph (E) $72,500,000 for each of the academic farm owned by the quota lessee; or (7)(E) to the extent that funding is available. years 2019–2020 through 2023–2024. (II) for which the rights to produce the to- (E) LIFETIME LIMITATION ON PAYMENTS.— The total amount of payments made under SEC. 1013. BUDGETARY TREATMENT. bacco were rented to the quota lessee; and this paragraph to a quota holder shall not This subtitle constitutes budget authority (ii) for which the quota tenant was the principal producer of the tobacco on the exceed the product obtained by multiplying in advance of appropriations Acts and rep- the base quota level for the quota holder by resents the obligation of the Federal Govern- farm. (5) MARKETING QUOTAS OTHER THAN POUND- $8 per pound. ment to provide payments to States and eli- (4) REISSUANCE OF QUOTA.— gible persons in accordance with this title. AGE QUOTAS.— (A) IN GENERAL.—For each type of tobacco (A) REALLOCATION TO LESSEE OR TENANT.— Subtitle B—Tobacco Market Transition for which there is a marketing quota or al- If a quota holder exercises an option to relin- Assistance lotment (on an acreage basis), the base quota quish a tobacco farm marketing quota or farm acreage allotment under paragraph (2), SEC. 1021. PAYMENTS FOR LOST TOBACCO level for each quota holder, quota lessee, or QUOTA. quota tenant shall be determined in accord- a quota lessee or quota tenant that was the primary producer during the 1997 marketing (a) IN GENERAL.—Beginning with the 1999 ance with this subsection (based on a pound- year of tobacco pursuant to the farm mar- marketing year, the Secretary shall make age conversion) by multiplying— keting quota or farm acreage allotment, as payments for lost tobacco quota to eligible (i) the average tobacco farm marketing determined by the Secretary, shall be given quota holders, quota lessees, and quota ten- quota or allotment for the 1995 through 1997 the option of having an allotment of the ants as reimbursement for lost tobacco marketing years; and farm marketing quota or farm acreage allot- quota. (ii) the average yield per acre for the farm for the type of tobacco for the marketing ment reallocated to a farm owned by the (b) ELIGIBILITY.—To be eligible to receive quota lessee or quota tenant. years. payments under this section, a quota holder, (B) CONDITIONS FOR REALLOCATION.— (B) YIELDS NOT AVAILABLE.—If the average quota lessee, or quota tenant shall— (i) TIMING.—A quota lessee or quota tenant yield per acre is not available for a farm, the (1) prepare and submit to the Secretary an that is given the option of having an allot- Secretary shall calculate the base quota for application at such time, in such manner, ment of a farm marketing quota or farm the quota holder, quota lessee, or quota ten- and containing such information as the Sec- acreage allotment reallocated to a farm ant (based on a poundage conversion) by de- retary may require, including information owned by the quota lessee or quota tenant termining the amount equal to the product sufficient to make the demonstration re- under subparagraph (A) shall have 1 year obtained by multiplying— quired under paragraph (2); and from the date on which a farm marketing (i) the average tobacco farm marketing (2) demonstrate to the satisfaction of the quota or farm acreage allotment is relin- Secretary that, with respect to the 1997 mar- quota or allotment for the 1995 through 1997 quished under paragraph (2) to exercise the keting year— marketing years; and option. (ii) the average county yield per acre for (A) the producer was a quota holder and re- (ii) LIMITATION ON ACREAGE ALLOTMENT.—In alized income (or would have realized in- the county in which the farm is located for the case of a farm acreage allotment, the come, as determined by the Secretary, but the type of tobacco for the marketing years. acreage allotment determined for any farm for a medical hardship or crop disaster dur- (d) PAYMENTS FOR LOST TOBACCO QUOTA subsequent to any reallocation under sub- ing the 1997 marketing year) from the pro- FOR TYPES OF TOBACCO OTHER THAN FLUE- paragraph (A) shall not exceed 50 percent of duction of tobacco through— CURED TOBACCO.— the acreage of cropland of the farm owned by (i) the active production of tobacco; (1) ALLOCATION OF FUNDS.—Of the amounts the quota lessee or quota tenant. (ii) the lease and transfer of tobacco quota made available under section 1011(d)(1) for (iii) LIMITATION ON MARKETING QUOTA.—In to another farm; payments for lost tobacco quota, the Sec- the case of a farm marketing quota, the mar- (iii) the rental of all or part of the farm of retary shall make available for payments keting quota determined for any farm subse- the quota holder, including the right to under this subsection an amount that bears quent to any reallocation under subpara- produce tobacco, to another tobacco pro- the same ratio to the amounts made avail- graph (A) shall not exceed an amount deter- ducer; or able as— mined by multiplying— (iv) the hiring of a quota tenant to produce (A) the sum of all national marketing (I) the average county farm yield, as deter- tobacco; quotas for all types of tobacco other than mined by the Secretary; and (B) the producer was a quota lessee; or flue-cured tobacco during the 1995 through (II) 50 percent of the acreage of cropland of (C) the producer was a quota tenant. 1997 marketing years; bears to the farm owned by the quota lessee or quota (c) BASE QUOTA LEVEL.— (B) the sum of all national marketing tenant. (1) IN GENERAL.—The Secretary shall deter- quotas for all types of tobacco during the (C) ELIGIBILITY OF LESSEE OR TENANT FOR mine, for each quota holder, quota lessee, 1995 through 1997 marketing years. PAYMENTS.—If a farm marketing quota or and quota tenant, the base quota level for (2) OPTION TO RELINQUISH QUOTA.— farm acreage allotment is reallocated to a the 1995 through 1997 marketing years. (A) IN GENERAL.—Each quota holder, for quota lessee or quota tenant under subpara- (2) QUOTA HOLDERS.—The base quota level types of tobacco other than flue-cured to- graph (A)— for a quota holder shall be equal to the aver- bacco, shall be given the option to relinquish (i) the quota lessee or quota tenant shall age tobacco farm marketing quota estab- the farm marketing quota or farm acreage not be eligible for any additional payments lished for the farm owned by the quota hold- allotment of the quota holder in exchange under paragraph (5) or (6) as a result of the er for the 1995 through 1997 marketing years. for a payment made under paragraph (3). reallocation; and (3) QUOTA LESSEES.—The base quota level (B) NOTIFICATION.—A quota holder shall (ii) the base quota level for the quota les- for a quota lessee shall be equal to— give notification of the intention of the see or quota tenant shall not be increased as (A) 50 percent of the average number of quota holder to exercise the option at such a result of the reallocation. pounds of tobacco quota established for the time and in such manner as the Secretary (D) REALLOCATION TO QUOTA HOLDERS WITH- farm for the 1995 through 1997 marketing may require, but not later than January 15, IN SAME COUNTY OR STATE.— years— 1999. (i) IN GENERAL.—Except as provided in (i) that was leased and transferred to a (3) PAYMENTS FOR LOST TOBACCO QUOTA TO clause (ii), if there was no quota lessee or farm owned by the quota lessee; or QUOTA HOLDERS EXERCISING OPTIONS TO RELIN- quota tenant for the farm marketing quota (ii) that was rented to the quota lessee for QUISH QUOTA.— or farm acreage allotment for a type of to- the right to produce the tobacco; less (A) IN GENERAL.—Subject to subparagraph bacco, or if no quota lessee or quota tenant (B) 25 percent of the average number of (E), for each of fiscal years 1999 through 2008, exercises an option of having an allotment of pounds of tobacco quota described in sub- the Secretary shall make annual payments the farm marketing quota or farm acreage paragraph (A) for which a quota tenant was for lost tobacco quota to each quota holder allotment for a type of tobacco reallocated, the principal producer of the tobacco quota. that has relinquished the farm marketing the Secretary shall reapportion the farm S6218 CONGRESSIONAL RECORD — SENATE June 11, 1998 marketing quota or farm acreage allotment is less than the average national marketing the person reduced by the product obtained among the remaining quota holders for the quota for the type of tobacco for the 1995 by multiplying— type of tobacco within the same county. through 1997 marketing years, the Secretary (I) the base quota level attributable to the (ii) CROSS-COUNTY LEASING.—In a State in shall make payments for lost tobacco quota quota; and which cross-county leasing is authorized pur- to each quota lessee and quota tenant, for (II) $8 per pound; and suant to section 319(l) of the Agricultural types of tobacco other than flue-cured to- (B) if the quota or allotment has never Adjustment Act of 1938 (7 U.S.C. 1314e(l)), the bacco, that is eligible under subsection (b) in been relinquished by a previous quota holder Secretary shall reapportion the farm mar- an amount that is equal to the product ob- under paragraph (2), the person that acquired keting quota among the remaining quota tained by multiplying— the quota shall have— holders for the type of tobacco within the (A) the percentage by which the national (i) the base quota level attributable to the same State. marketing quota for the type of tobacco is person increased by the base quota level at- (iii) ELIGIBILITY OF QUOTA HOLDER FOR PAY- less than the average national marketing tributable to the quota that is sold and MENTS.—If a farm marketing quota is re- quota for the type of tobacco for the 1995 transferred; and apportioned to a quota holder under this sub- through 1997 marketing years; (ii) the lifetime limitation on payments es- paragraph— (B) the base quota level for the quota les- tablished under paragraph (7) attributable to (I) the quota holder shall not be eligible for see or quota tenant; and the person— any additional payments under paragraph (5) (C) $4 per pound. (I) increased by the product obtained by or (6) as a result of the reapportionment; and multiplying— (7) LIFETIME LIMITATION ON PAYMENTS.—Ex- (II) the base quota level for the quota hold- (aa) the base quota level attributable to cept as otherwise provided in this sub- er shall not be increased as a result of the re- the quota; and section, the total amount of payments made apportionment. (bb) $8 per pound; but under this subsection to a quota holder, (E) SPECIAL RULE FOR TENANT OF LEASED (II) decreased by any payments under para- quota lessee, or quota tenant during the life- TOBACCO.—If a quota holder exercises an op- graph (5) for lost tobacco quota previously time of the quota holder, quota lessee, or tion to relinquish a tobacco farm marketing made that are attributable to the quota that quota tenant shall not exceed the product quota or farm acreage allotment under para- is sold and transferred. obtained by multiplying— graph (2), the farm marketing quota or farm (10) SALE OR TRANSFER OF FARM.—On the acreage allotment shall be divided evenly be- (A) the base quota level for the quota hold- sale or transfer of ownership of a farm that tween, and the option of reallocating the er, quota lessee, or quota tenant; and is owned by a quota holder, the base quota farm marketing quota or farm acreage allot- (B) $8 per pound. level established under subsection (c), the ment shall be offered in equal portions to, (8) LIMITATIONS ON AGGREGATE ANNUAL PAY- right to payments under paragraph (5), and the quota lessee and to the quota tenant, if— MENTS.— the lifetime limitation on payments estab- (i) during the 1997 marketing year, the (A) IN GENERAL.—Except as otherwise pro- lished under paragraph (7) shall transfer to farm marketing quota or farm acreage allot- vided in this paragraph, the total amount the new owner of the farm to the same ex- ment was leased and transferred to a farm payable under this subsection for any mar- tent and in the same manner as those provi- owned by the quota lessee; and keting year shall not exceed the amount sions applied to the previous quota holder. (ii) the quota tenant was the primary pro- made available under paragraph (1). (11) DEATH OF QUOTA LESSEE OR QUOTA TEN- ducer, as determined by the Secretary, of to- (B) ACCELERATED PAYMENTS.—Paragraph ANT.—If a quota lessee or quota tenant that bacco pursuant to the farm marketing quota (1) shall not apply if accelerated payments is entitled to payments under this subsection or farm acreage allotment. for lost tobacco quota are made in accord- dies and is survived by a spouse or 1 or more (5) PAYMENTS FOR LOST TOBACCO QUOTA TO ance with paragraph (12). dependents, the right to receive the pay- QUOTA HOLDERS.— (C) REDUCTIONS.—If the sum of the ments shall transfer to the surviving spouse (A) IN GENERAL.—Except as otherwise pro- amounts determined under paragraphs (3), or, if there is no surviving spouse, to the sur- vided in this subsection, during any market- (5), and (6) for a marketing year exceeds the viving dependents in equal shares. ing year in which the national marketing amount made available under paragraph (1), (12) ACCELERATION OF PAYMENTS.— quota for a type of tobacco is less than the the Secretary shall make a pro rata reduc- (A) IN GENERAL.—On the occurrence of any average national marketing quota for the tion in the amounts payable under para- of the events described in subparagraph (B), 1995 through 1997 marketing years, the Sec- graphs (5) and (6) to quota holders, quota les- the Secretary shall make an accelerated retary shall make payments for lost tobacco sees, and quota tenants under this sub- lump sum payment for lost tobacco quota as quota to each quota holder, for types of to- section to ensure that the total amount of established under paragraphs (5) and (6) to bacco other than flue-cured tobacco, that is payments for lost tobacco quota does not ex- each quota holder, quota lessee, and quota eligible under subsection (b), and has not ex- ceed the amount made available under para- tenant for any affected type of tobacco in ac- ercised an option to relinquish a tobacco graph (1). cordance with subparagraph (C). farm marketing quota or farm acreage allot- (D) ROLLOVER OF PAYMENTS FOR LOST TO- (B) TRIGGERING EVENTS.—The Secretary ment under paragraph (2), in an amount that BACCO QUOTA.—Subject to subparagraph (A), shall make accelerated payments under sub- is equal to the product obtained by multiply- if the Secretary makes a reduction in ac- paragraph (A) if after the date of enactment ing— cordance with subparagraph (C), the amount of this Act— (i) the number of pounds by which the of the reduction shall be applied to the next (i) subject to subparagraph (D), for 3 con- basic farm marketing quota (or poundage marketing year and added to the payments secutive marketing years, the national mar- conversion) is less than the base quota level for lost tobacco quota for the marketing keting quota or national acreage allotment for the quota holder; and year. for a type of tobacco is less than 50 percent (ii) $4 per pound. (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- of the national marketing quota or national (B) POUNDAGE CONVERSION FOR MARKETING ERS EXERCISING OPTION TO RELINQUISH acreage allotment for the type of tobacco for QUOTAS OTHER THAN POUNDAGE QUOTAS.— QUOTA.—If the amount made available under the 1998 marketing year; or (i) IN GENERAL.—For each type of tobacco paragraph (1) exceeds the sum of the (ii) Congress repeals or makes ineffective, for which there is a marketing quota or al- amounts determined under paragraphs (3), directly or indirectly, any provision of— lotment (on an acreage basis), the poundage (5), and (6) for a marketing year, the Sec- (I) section 316 of the Agricultural Adjust- conversion for each quota holder during a retary shall distribute the amount of the ex- ment Act of 1938 (7 U.S.C. 1314b); marketing year shall be determined by mul- cess pro rata to quota holders that have ex- (II) section 319 of the Agricultural Adjust- tiplying— ercised an option to relinquish a tobacco ment Act of 1938 (7 U.S.C. 1314e); (I) the basic farm acreage allotment for farm marketing quota or farm acreage allot- (III) section 106 of the Agricultural Act of the farm for the marketing year; and ment under paragraph (2) by increasing the 1949 (7 U.S.C. 1445); (II) the average yield per acre for the farm amount payable to each such holder under (IV) section 106A of the Agricultural Act of for the type of tobacco. paragraph (3). 1949 (7 U.S.C. 1445–1); or (ii) YIELD NOT AVAILABLE.—If the average (9) SUBSEQUENT SALE AND TRANSFER OF (V) section 106B of the Agricultural Act of yield per acre is not available for a farm, the QUOTA.—Effective beginning with the 1999 1949 (7 U.S.C. 1445–2). Secretary shall calculate the poundage con- marketing year, on the sale and transfer of a (C) AMOUNT.—The amount of the acceler- version for each quota holder during a mar- farm marketing quota or farm acreage allot- ated payments made to each quota holder, keting year by multiplying— ment under section 316(g) or 319(g) of the Ag- quota lessee, and quota tenant under this (I) the basic farm acreage allotment for ricultural Adjustment Act of 1938 (7 U.S.C. subsection shall be equal to— the farm for the marketing year; and 1314b(g), 1314e(g))— (i) the amount of the lifetime limitation (II) the average county yield per acre for (A) the person that sold and transferred established for the quota holder, quota les- the county in which the farm is located for the quota or allotment shall have— see, or quota tenant under paragraph (7); less the type of tobacco. (i) the base quota level attributable to the (ii) any payments for lost tobacco quota (6) PAYMENTS FOR LOST TOBACCO QUOTA TO person reduced by the base quota level at- received by the quota holder, quota lessee, or QUOTA LESSEES AND QUOTA TENANTS.—Except tributable to the quota that is sold and quota tenant before the occurrence of any of as otherwise provided in this subsection, dur- transferred; and the events described in subparagraph (B). ing any marketing year in which the na- (ii) the lifetime limitation on payments es- (D) REFERENDUM VOTE NOT A TRIGGERING tional marketing quota for a type of tobacco tablished under paragraph (7) attributable to EVENT.—A referendum vote of producers for June 11, 1998 CONGRESSIONAL RECORD — SENATE S6219 any type of tobacco that results in the na- quota to each quota lessee or quota tenant the amount of the reduction shall be applied tional marketing quota or national acreage that— to the next marketing year and added to the allotment not being in effect for the type of (i) is eligible under subsection (b); payments for lost flue-cured tobacco quota tobacco shall not be considered a triggering (ii) has been issued an individual tobacco for the marketing year. event under this paragraph. production permit under section 317A(b) of (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- (13) BAN ON SUBSEQUENT SALE OR LEASING OF the Agricultural Adjustment Act of 1938; and ERS EXERCISING OPTION TO RELINQUISH QUOTAS FARM MARKETING QUOTA OR FARM ACREAGE AL- (iii) has not exercised an option to relin- OR PERMITS, OR TO QUOTA LESSEES OR QUOTA LOTMENT TO QUOTA HOLDERS EXERCISING OP- quish the permit. TENANTS RELINQUISHING PERMITS.—If the TION TO RELINQUISH QUOTA.—No quota holder (B) AMOUNT.—The amount of a payment amount made available under paragraph (1) that exercises the option to relinquish a made to a quota lessee or quota tenant de- exceeds the sum of the amounts determined farm marketing quota or farm acreage allot- scribed in subparagraph (A) for a marketing under paragraphs (3), (4), and (5) for a mar- ment for any type of tobacco under para- year shall be equal to the product obtained keting year, the Secretary shall distribute graph (2) shall be eligible to acquire a farm by multiplying— the amount of the excess pro rata to quota marketing quota or farm acreage allotment (i) the number of pounds by which the indi- holders by increasing the amount payable to for the type of tobacco, or to obtain the lease vidual marketing limitation established for each such holder under paragraphs (3) and or transfer of a farm marketing quota or the permit is less than twice the base quota (5). farm acreage allotment for the type of to- level for the quota lessee or quota tenant; (8) DEATH OF QUOTA HOLDER, QUOTA LESSEE, bacco, for a period of 25 crop years after the and OR QUOTA TENANT.—If a quota holder, quota date on which the quota or allotment was re- (ii) $2 per pound. lessee or quota tenant that is entitled to linquished. (5) PAYMENTS FOR LOST FLUE-CURED TO- payments under paragraph (4) or (5) dies and BACCO QUOTA TO QUOTA LESSEES AND QUOTA is survived by a spouse or 1 or more descend- (e) PAYMENTS FOR LOST TOBACCO QUOTA TENANTS THAT HAVE RELINQUISHED PERMITS.— ants, the right to receive the payments shall FOR FLUE-CURED TOBACCO.— (A) IN GENERAL.—For each of fiscal years transfer to the surviving spouse or, if there (1) ALLOCATION OF FUNDS.—Of the amounts 1999 through 2008, the Secretary shall make is no surviving spouse, to the surviving de- made available under section 1011(d)(1) for annual payments for lost flue-cured tobacco scendants in equal shares. payments for lost tobacco quota, the Sec- quota to each quota lessee and quota tenant (9) ACCELERATION OF PAYMENTS.— retary shall make available for payments that has relinquished an individual tobacco (A) IN GENERAL.—On the occurrence of any under this subsection an amount that bears production permit under section 317A(b)(5) of of the events described in subparagraph (B), the same ratio to the amounts made avail- the Agricultural Adjustment Act of 1938. the Secretary shall make an accelerated able as— (B) AMOUNT.—The amount of a payment lump sum payment for lost flue-cured to- (A) the sum of all national marketing made to a quota lessee or quota tenant de- bacco quota as established under paragraphs quotas for flue-cured tobacco during the 1995 scribed in subparagraph (A) for a marketing (3), (4), and (5) to each quota holder, quota through 1997 marketing years; bears to year shall be equal to 1⁄10 of the lifetime limi- lessee, and quota tenant for flue-cured to- (B) the sum of all national marketing tation established under paragraph (6). bacco in accordance with subparagraph (C). quotas for all types of tobacco during the (C) TIMING.—The Secretary shall begin (B) TRIGGERING EVENTS.—The Secretary 1995 through 1997 marketing years. making annual payments under this para- shall make accelerated payments under sub- (2) RELINQUISHMENT OF QUOTA.— graph for the marketing year in which the paragraph (A) if after the date of enactment (A) IN GENERAL.—Each quota holder of flue- individual tobacco production permit is re- of this Act— cured tobacco shall relinquish the farm mar- linquished. (i) subject to subparagraph (D), for 3 con- keting quota or farm acreage allotment in (D) ADDITIONAL PAYMENTS.—The Secretary secutive marketing years, the national mar- exchange for a payment made under para- may increase annual payments under this keting quota or national acreage allotment graph (3) due to the transition from farm paragraph in accordance with paragraph for flue-cured tobacco is less than 50 percent marketing quotas as provided under section (7)(E) to the extent that funding is available. of the national marketing quota or national 317 of the Agricultural Adjustment Act of (E) PROHIBITION AGAINST PERMIT EXPAN- acreage allotment for flue-cured tobacco for 1938 for flue-cured tobacco to individual to- SION.—A quota lessee or quota tenant that the 1998 marketing year; or bacco production permits as provided under receives a payment under this paragraph (ii) Congress repeals or makes ineffective, section 317A of the Agricultural Adjustment shall be ineligible to receive any new or in- directly or indirectly, any provision of— Act of 1938 for flue-cured tobacco. creased tobacco production permit from the (I) section 316 of the Agricultural Adjust- (B) NOTIFICATION.—The Secretary shall no- county production pool established under ment Act of 1938 (7 U.S.C. 1314b); tify the quota holders of the relinquishment section 317A(b)(8) of the Agricultural Adjust- (II) section 319 of the Agricultural Adjust- of their quota or allotment at such time and ment Act of 1938. ment Act of 1938 (7 U.S.C. 1314e); in such manner as the Secretary may re- (6) LIFETIME LIMITATION ON PAYMENTS.—Ex- (III) section 106 of the Agricultural Act of quire, but not later than November 15, 1998. cept as otherwise provided in this sub- 1949 (7 U.S.C. 1445); (3) PAYMENTS FOR LOST FLUE-CURED TO- section, the total amount of payments made (IV) section 106A of the Agricultural Act of BACCO QUOTA TO QUOTA HOLDERS THAT RELIN- under this subsection to a quota holder, 1949 (7 U.S.C. 1445–1); QUISH QUOTA.— quota lessee, or quota tenant during the life- (V) section 106B of the Agricultural Act of (A) IN GENERAL.—For each of fiscal years time of the quota holder, quota lessee, or 1949 (7 U.S.C. 1445–2); or 1999 through 2008, the Secretary shall make quota tenant shall not exceed the product (VI) section 317A of the Agricultural Ad- annual payments for lost flue-cured tobacco obtained by multiplying— justment Act of 1938. to each quota holder that has relinquished (A) the base quota level for the quota hold- (C) AMOUNT.—The amount of the acceler- the farm marketing quota or farm acreage er, quota lessee, or quota tenant; and ated payments made to each quota holder, allotment of the quota holder under para- (B) $8 per pound. quota lessee, and quota tenant under this graph (2). (7) LIMITATIONS ON AGGREGATE ANNUAL PAY- subsection shall be equal to— (B) AMOUNT.—The amount of a payment MENTS.— (i) the amount of the lifetime limitation made to a quota holder described in subpara- (A) IN GENERAL.—Except as otherwise pro- established for the quota holder, quota les- graph (A) for a marketing year shall equal vided in this paragraph, the total amount see, or quota tenant under paragraph (6); less 1⁄10 of the lifetime limitation established payable under this subsection for any mar- (ii) any payments for lost flue-cured to- under paragraph (6). keting year shall not exceed the amount bacco quota received by the quota holder, (C) TIMING.—The Secretary shall begin made available under paragraph (1). quota lessee, or quota tenant before the oc- making annual payments under this para- (B) ACCELERATED PAYMENTS.—Paragraph currence of any of the events described in graph for the marketing year in which the (1) shall not apply if accelerated payments subparagraph (B). farm marketing quota or farm acreage allot- for lost flue-cured tobacco quota are made in (D) REFERENDUM VOTE NOT A TRIGGERING ment is relinquished. accordance with paragraph (9). EVENT.—A referendum vote of producers for (D) ADDITIONAL PAYMENTS.—The Secretary (C) REDUCTIONS.—If the sum of the flue-cured tobacco that results in the na- may increase annual payments under this amounts determined under paragraphs (3), tional marketing quota or national acreage paragraph in accordance with paragraph (4), and (5) for a marketing year exceeds the allotment not being in effect for flue-cured (7)(E) to the extent that funding is available. amount made available under paragraph (1), tobacco shall not be considered a triggering (4) PAYMENTS FOR LOST FLUE-CURED TO- the Secretary shall make a pro rata reduc- event under this paragraph. BACCO QUOTA TO QUOTA LESSEES AND QUOTA tion in the amounts payable under paragraph SEC. 1022. INDUSTRY PAYMENTS FOR ALL DE- TENANTS THAT HAVE NOT RELINQUISHED PER- (4) to quota lessees and quota tenants under PARTMENT COSTS ASSOCIATED MITS.— this subsection to ensure that the total WITH TOBACCO PRODUCTION. (A) IN GENERAL.—Except as otherwise pro- amount of payments for lost flue-cured to- (a) IN GENERAL.—The Secretary shall use vided in this subsection, during any market- bacco quota does not exceed the amount such amounts remaining unspent and obli- ing year in which the national marketing made available under paragraph (1). gated at the end of each fiscal year to reim- quota for flue-cured tobacco is less than the (D) ROLLOVER OF PAYMENTS FOR LOST FLUE- burse the Secretary for— average national marketing quota for the CURED TOBACCO QUOTA.—Subject to subpara- (1) costs associated with the administra- 1995 through 1997 marketing years, the Sec- graph (A), if the Secretary makes a reduc- tion of programs established under this title retary shall make payments for lost tobacco tion in accordance with subparagraph (C), and amendments made by this title; S6220 CONGRESSIONAL RECORD — SENATE June 11, 1998 (2) costs associated with the administra- the Secretary determines will not be used to 2008 shall be used to carry out initiatives de- tion of the tobacco quota and price support carry out this section in accordance with an scribed in paragraph (1)(H). programs administered by the Secretary; approved State application required under (D) TOBACCO-GROWING COUNTIES.—To be eli- (3) costs to the Federal Government of car- subsection (b), shall be reallotted by the Sec- gible to receive payments under this section, rying out crop insurance programs for to- retary to other States in proportion to the a State shall demonstrate to the Secretary bacco; original allotments to the other States. that funding will be provided, during each 5- (4) costs associated with all agricultural (e) USE AND DISTRIBUTION OF FUNDS.— year period for which funding is provided research, extension, or education activities (1) IN GENERAL.—Amounts received by a under this section, for activities in each associated with tobacco; State under this section shall be used to county in the State that has been deter- (5) costs associated with the administra- carry out economic development activities, mined under paragraph (2) to have in excess tion of loan association and cooperative pro- including— of $100,000 in income derived from the pro- grams for tobacco producers, as approved by (A) rural business enterprise activities de- duction of tobacco, in amounts that are at the Secretary; and scribed in subsections (c) and (e) of section least equal to the product obtained by mul- (6) any other costs incurred by the Depart- 310B of the Consolidated Farm and Rural De- tiplying— ment of Agriculture associated with the pro- velopment Act (7 U.S.C. 1932); (i) the ratio that the tobacco production duction of tobacco. (B) down payment loan assistance pro- income in the county determined under para- (b) LIMITATIONS.—Amounts made available grams that are similar to the program de- graph (2) bears to the total tobacco produc- under subsection (a) may not be used— scribed in section 310E of the Consolidated tion income for the State determined under (1) to provide direct benefits to quota hold- Farm and Rural Development Act (7 U.S.C. subsection (c); and ers, quota lessees, or quota tenants; or 1935); (ii) 50 percent of the total amounts re- (2) in a manner that results in a decrease, (C) activities designed to help create pro- ceived by a State under this section during or an increase relative to other crops, in the ductive farm or off-farm employment in the 5-year period. amount of the crop insurance premiums as- rural areas to provide a more viable eco- (f) PREFERENCES IN HIRING.—A State may sessed to participating tobacco producers nomic base and enhance opportunities for require recipients of funds under this section under the Federal Crop Insurance Act (7 improved incomes, living standards, and con- to provide a preference in employment to— U.S.C. 1501 et seq.). tributions by rural individuals to the eco- (1) an individual who— (c) DETERMINATIONS.—Not later than Sep- nomic and social development of tobacco (A) during the 1998 calendar year, was em- tember 30, 1998, and each fiscal year there- communities; ployed in the manufacture, processing, or after, the Secretary shall determine— (D) activities that expand existing infra- warehousing of tobacco or tobacco products, structure, facilities, and services to capital- (1) the amount of costs described in sub- or resided, in a county described in sub- ize on opportunities to diversify economies section (a); and section (e)(2); and in tobacco communities and that support the (2) the amount that will be provided under (B) is eligible for assistance under the to- development of new industries or commer- this section as reimbursement for the costs. bacco worker transition program established cial ventures; SEC. 1023. TOBACCO COMMUNITY ECONOMIC DE- under section 1031; or (E) activities by agricultural organizations VELOPMENT GRANTS. (2) an individual who— that provide assistance directly to partici- (a) AUTHORITY.—The Secretary shall make (A) during the 1998 marketing year, carried pating tobacco producers to assist in devel- grants to tobacco-growing States in accord- out tobacco quota or relevant tobacco pro- oping other agricultural activities that sup- ance with this section to enable the States duction activities in a county described in to carry out economic development initia- plement tobacco-producing activities; (F) initiatives designed to create or expand subsection (e)(2); tives in tobacco-growing communities. (B) is eligible for a farmer opportunity (b) APPLICATION.—To be eligible to receive locally owned value-added processing and grant under subpart 9 of part A of title IV of payments under this section, a State shall marketing operations in tobacco commu- the Higher Education Act of 1965; and prepare and submit to the Secretary an ap- nities; (C) has successfully completed a course of plication at such time, in such manner, and (G) technical assistance activities by per- study at an institution of higher education. containing such information as the Sec- sons to support farmer-owned enterprises, or (g) MAINTENANCE OF EFFORT.— retary may require, including— agriculture-based rural development enter- (1) IN GENERAL.—Subject to paragraph (2), a (1) a description of the activities that the prises, of the type described in section 252 or State shall provide an assurance to the Sec- State will carry out using amounts received 253 of the Trade Act of 1974 (19 U.S.C. 2342, retary that the amount of funds expended by under the grant; 2343); and the State and all counties in the State de- (2) a designation of an appropriate State (H) initiatives designed to partially com- scribed in subsection (e)(2) for any activities agency to administer amounts received pensate tobacco warehouse owners for lost funded under this section for a fiscal year is under the grant; and revenues and assist the tobacco warehouse not less than 90 percent of the amount of (3) a description of the steps to be taken to owners in establishing successful business funds expended by the State and counties for ensure that the funds are distributed in ac- enterprises. the activities for the preceding fiscal year. cordance with subsection (e). (2) TOBACCO-GROWING COUNTIES.—Assistance (c) AMOUNT OF GRANT.— may be provided by a State under this sec- (2) REDUCTION OF GRANT AMOUNT.—If a (1) IN GENERAL.—From the amounts avail- tion only to assist a county in the State that State does not provide an assurance de- able to carry out this section for a fiscal has been determined by the Secretary to scribed in paragraph (1), the Secretary shall year, the Secretary shall allot to each State have in excess of $100,000 in income derived reduce the amount of the grant determined an amount that bears the same ratio to the from the production of tobacco during 1 or under subsection (c) by an amount equal to amounts available as the total farm income more of the 1995 through 1997 marketing the amount by which the amount of funds of the State derived from the production of years. For purposes of this section, the term expended by the State and counties for the tobacco during the 1995 through 1997 market- ‘‘tobacco-growing county’’ includes a politi- activities is less than 90 percent of the ing years (as determined under paragraph cal subdivision surrounded within a State by amount of funds expended by the State and (2)) bears to the total farm income of all a county that has been determined by the counties for the activities for the preceding States derived from the production of to- Secretary to have in excess of $100,000 in in- fiscal year, as determined by the Secretary. bacco during the 1995 through 1997 marketing come derived from the production of tobacco (3) FEDERAL FUNDS.—For purposes of this years. during 1 or more of the 1995 through 1997 subsection, the amount of funds expended by (2) TOBACCO INCOME.—For the 1995 through marketing years. a State or county shall not include any 1997 marketing years, the Secretary shall de- (3) DISTRIBUTION.— amounts made available by the Federal Gov- termine the amount of farm income derived (A) ECONOMIC DEVELOPMENT ACTIVITIES.— ernment. from the production of tobacco in each State Not less than 20 percent of the amounts re- SEC. 1024. FLUE-CURED TOBACCO PRODUCTION and in all States. ceived by a State under this section shall be PERMITS. (d) PAYMENTS.— used to carry out— The Agricultural Adjustment Act of 1938 is (1) IN GENERAL.—A State that has an appli- (i) economic development activities de- amended by inserting after section 317 (7 cation approved by the Secretary under sub- scribed in subparagraph (E) or (F) of para- U.S.C. 1314c) the following: section (b) shall be entitled to a payment graph (1); or ‘‘SEC. 317A. FLUE-CURED TOBACCO PRODUCTION under this section in an amount that is equal (ii) agriculture-based rural development PERMITS. to its allotment under subsection (c). activities described in paragraph (1)(G). ‘‘(a) DEFINITIONS.—In this section: (2) FORM OF PAYMENTS.—The Secretary (B) TECHNICAL ASSISTANCE ACTIVITIES.—Not ‘‘(1) INDIVIDUAL ACREAGE LIMITATION.—The may make payments under this section to a less than 4 percent of the amounts received term ‘individual acreage limitation’ means State in installments, and in advance or by by a State under this section shall be used to the number of acres of flue-cured tobacco way of reimbursement, with necessary ad- carry out technical assistance activities de- that may be planted by the holder of a per- justments on account of overpayments or scribed in paragraph (1)(G). mit during a marketing year, calculated— underpayments, as the Secretary may deter- (C) TOBACCO WAREHOUSE OWNER INITIA- ‘‘(A) prior to— mine. TIVES.—Not less than 6 percent of the ‘‘(i) any increase or decrease in the number (3) REALLOTMENTS.—Any portion of the al- amounts received by a State under this sec- due to undermarketings or overmarketings; lotment of a State under subsection (c) that tion during each of fiscal years 1999 through and June 11, 1998 CONGRESSIONAL RECORD — SENATE S6221

‘‘(ii) any reduction under subsection (i); ‘‘(7) PERMIT YIELD.—The term ‘permit ‘‘(C) ADMINISTRATION.—The Secretary shall and yield’ means the yield of tobacco per acre for issue regulations— ‘‘(B) in a manner that ensures that— an individual tobacco production permit ‘‘(i) defining the term ‘person’ for the pur- ‘‘(i) the total of all individual acreage limi- holder that is— pose of this paragraph; and tations is equal to the national acreage al- ‘‘(A) based on a preliminary permit yield ‘‘(ii) prescribing such rules as the Sec- lotment, less the reserve provided under sub- that is equal to the average yield during the retary determines are necessary to ensure a section (h); and 5 marketing years immediately preceding fair and reasonable application of the prohi- ‘‘(ii) the individual acreage limitation for a the marketing year for which the determina- bition established under this paragraph. marketing year bears the same ratio to the tion is made in the county where the holder ‘‘(4) ISSUANCE OF PERMITS TO PRINCIPAL individual acreage limitation for the pre- of the permit is authorized to plant flue- PRODUCERS OF FLUE-CURED TOBACCO.— vious marketing year as the ratio that the cured tobacco, as determined by the Sec- ‘‘(A) IN GENERAL.—By January 15, 1999, national acreage allotment for the market- retary, on the basis of actual yields of farms each individual quota lessee or quota tenant ing year bears to the national acreage allot- in the county; and (as defined in section 1002 of the LEAF Act) ment for the previous marketing year, sub- ‘‘(B) adjusted by a weighted national yield that was the principal producer of flue-cured ject to adjustments by the Secretary to ac- factor calculated by— tobacco during the 1997 marketing year, as count for any reserve provided under sub- ‘‘(i) multiplying each preliminary permit determined by the Secretary, shall be issued section (h). yield by the individual acreage limitation, an individual tobacco production permit ‘‘(2) INDIVIDUAL MARKETING LIMITATION.— prior to adjustments for overmarketings, under this section. The term ‘individual marketing limitation’ undermarketings, or reductions required ‘‘(B) INDIVIDUAL ACREAGE LIMITATIONS.—In means the number of pounds of flue-cured to- under subsection (i); and establishing the individual acreage limita- bacco that may be marketed by the holder of ‘‘(ii) dividing the sum of the products tion for the 1999 marketing year under this a permit during a marketing year, cal- under clause (i) for all flue-cured individual section, the farm acreage allotment that was culated— tobacco production permit holders by the na- allotted to a farm owned by a quota holder ‘‘(A) prior to— tional acreage allotment. for whom the quota lessee or quota tenant ‘‘(i) any increase or decrease in the number ‘‘(b) INITIAL ISSUANCE OF PERMITS.— was the principal producer of flue-cured to- due to undermarketings or overmarketings; ‘‘(1) TERMINATION OF FLUE-CURED MARKET- bacco during the 1997 marketing year shall and ING QUOTAS.—On the date of enactment of the be considered the individual acreage limita- ‘‘(ii) any reduction under subsection (i); National Tobacco Policy and Youth Smoking tion for the previous marketing year. and Reduction Act, farm marketing quotas as ‘‘(C) INDIVIDUAL MARKETING LIMITATIONS.— ‘‘(B) in a manner that ensures that— provided under section 317 shall no longer be In establishing the individual marketing ‘‘(i) the total of all individual marketing in effect for flue-cured tobacco. limitation for the 1999 marketing year under limitations is equal to the national market- ‘‘(2) ISSUANCE OF PERMITS TO QUOTA HOLD- this section, the individual marketing limi- ing quota, less the reserve provided under ERS THAT WERE PRINCIPAL PRODUCERS.— tation for the previous year for an individual subsection (h); and ‘‘(A) IN GENERAL.—By January 15, 1999, described in this paragraph shall be cal- ‘‘(ii) the individual marketing limitation each individual quota holder under section culated by multiplying— for a marketing year is obtained by mul- 317 that was a principal producer of flue- ‘‘(i) the farm marketing quota that was al- tiplying the individual acreage limitation by cured tobacco during the 1998 marketing lotted to a farm owned by a quota holder for the permit yield, prior to any adjustment for year, as determined by the Secretary, shall whom the quota lessee or quota holder was undermarketings or overmarketings. be issued an individual tobacco production the principal producer of flue-cured tobacco ‘‘(3) INDIVIDUAL TOBACCO PRODUCTION PER- permit under this section. during the 1997 marketing year, by MIT.—The term ‘individual tobacco produc- ‘‘(B) NOTIFICATION.—The Secretary shall ‘‘(ii) the ratio that— tion permit’ means a permit issued by the notify the holder of each permit of the indi- ‘‘(I) the sum of all flue-cured tobacco farm Secretary to a person authorizing the pro- vidual acreage limitation and the individual marketing quotas for the 1997 marketing duction of flue-cured tobacco for any mar- marketing limitation applicable to the hold- year prior to adjusting for undermarketing keting year during which this section is ef- er for each marketing year. and overmarketing; bears to fective. ‘‘(C) INDIVIDUAL ACREAGE LIMITATION FOR ‘‘(II) the sum of all flue-cured tobacco farm ‘‘(4) NATIONAL ACREAGE ALLOTMENT.—The 1999 MARKETING YEAR.—In establishing the in- marketing quotas for the 1998 marketing term ‘national acreage allotment’ means the dividual acreage limitation for the 1999 mar- year, after adjusting for undermarketing and quantity determined by dividing— keting year under this section, the farm overmarketing. ‘‘(A) the national marketing quota; by acreage allotment that was allotted to a ‘‘(D) SPECIAL RULE FOR TENANT OF LEASED ‘‘(B) the national average yield goal. farm owned by the quota holder for the 1997 FLUE-CURED TOBACCO.—If the farm marketing ‘‘(5) NATIONAL AVERAGE YIELD GOAL.—The marketing year shall be considered the indi- quota or farm acreage allotment of a quota term ‘national average yield goal’ means the vidual acreage limitation for the previous holder was produced pursuant to an agree- national average yield for flue-cured tobacco marketing year. ment under which a quota lessee rented land during the 5 marketing years immediately ‘‘(D) INDIVIDUAL MARKETING LIMITATION FOR from a quota holder and a quota tenant was preceding the marketing year for which the 1999 MARKETING YEAR.—In establishing the in- the primary producer, as determined by the determination is being made. dividual marketing limitation for the 1999 Secretary, of flue-cured tobacco pursuant to ‘‘(6) NATIONAL MARKETING QUOTA.—For the marketing year under this section, the farm the farm marketing quota or farm acreage 1999 and each subsequent crop of flue-cured marketing quota that was allotted to a farm allotment, the farm marketing quota or tobacco, the term ‘national marketing owned by the quota holder for the 1997 mar- farm acreage allotment shall be divided pro- quota’ for a marketing year means the quan- keting year shall be considered the individ- portionately between the quota lessee and tity of flue-cured tobacco, as determined by ual marketing limitation for the previous quota tenant for purposes of issuing individ- the Secretary, that is not more than 103 per- marketing year. ual tobacco production permits under this cent nor less than 97 percent of the total of— ‘‘(3) QUOTA HOLDERS THAT WERE NOT PRIN- paragraph. ‘‘(A) the aggregate of the quantities of CIPAL PRODUCERS.— ‘‘(5) OPTION OF QUOTA LESSEE OR QUOTA TEN- flue-cured tobacco that domestic manufac- ‘‘(A) IN GENERAL.—Except as provided in ANT TO RELINQUISH PERMIT.— turers of cigarettes estimate that the manu- subparagraph (B), on approval through a ref- ‘‘(A) IN GENERAL.—Each quota lessee or facturers intend to purchase on the United erendum under subsection (c)— quota tenant that is issued an individual to- States auction markets or from producers ‘‘(i) each person that was a quota holder bacco production permit under paragraph (4) during the marketing year, as compiled and under section 317 but that was not a prin- shall be given the option of relinquishing the determined under section 320A; cipal producer of flue-cured tobacco during permit in exchange for payments made under ‘‘(B) the average annual quantity of flue- the 1997 marketing year, as determined by section 1021(e)(5) of the LEAF Act. cured tobacco exported from the United the Secretary, shall not be eligible to own a ‘‘(B) NOTIFICATION.—A quota lessee or States during the 3 marketing years imme- permit; and quota tenant that is issued an individual to- diately preceding the marketing year for ‘‘(ii) the Secretary shall not issue any per- bacco production permit shall give notifica- which the determination is being made; and mit during the 25-year period beginning on tion of the intention to exercise the option ‘‘(C) the quantity, if any, of flue-cured to- the date of enactment of this Act to any per- at such time and in such manner as the Sec- bacco that the Secretary, in the discretion of son that was a quota holder and was not the retary may require, but not later than 45 the Secretary, determines is necessary to in- principal producer of flue-cured tobacco dur- days after the permit is issued. crease or decrease the inventory of the pro- ing the 1997 marketing year. ‘‘(C) REALLOCATION OF PERMIT.—The Sec- ducer-owned cooperative marketing associa- ‘‘(B) MEDICAL HARDSHIPS AND CROP DISAS- retary shall add the authority to produce tion that has entered into a loan agreement TERS.—Subparagraph (A) shall not apply to a flue-cured tobacco under the individual to- with the Commodity Credit Corporation to person that would have been the principal bacco production permit relinquished under make price support available to producers of producer of flue-cured tobacco during the this paragraph to the county production pool flue-cured tobacco to establish or maintain 1997 marketing year but for a medical hard- established under paragraph (8) for realloca- the inventory at the reserve stock level for ship or crop disaster that occurred during tion by the appropriate county committee. flue-cured tobacco. the 1997 marketing year. ‘‘(6) ACTIVE PRODUCER REQUIREMENT.— S6222 CONGRESSIONAL RECORD — SENATE June 11, 1998

‘‘(A) REQUIREMENT FOR SHARING RISK.—No ‘‘(iv) the soil and other physical factors af- ‘‘(f) ASSIGNMENT OF TOBACCO PRODUCTION individual tobacco production permit shall fecting the production of tobacco. PERMITS.— be issued to, or maintained by, a person that ‘‘(D) MEDICAL HARDSHIPS AND CROP DISAS- ‘‘(1) LIMITATION TO SAME COUNTY.—Each in- does not fully share in the risk of producing TERS.—Notwithstanding any other provision dividual tobacco production permit holder a crop of flue-cured tobacco. of this Act, the Secretary may issue an indi- shall assign the individual acreage limita- ‘‘(B) CRITERIA FOR SHARING RISK.—For pur- vidual tobacco production permit under this tion and individual marketing limitation to poses of this paragraph, a person shall be paragraph to a producer that is otherwise in- 1 or more farms located within the county of considered to have fully shared in the risk of eligible for the permit due to a medical hard- origin of the individual tobacco production production of a crop if— ship or crop disaster that occurred during permit. ‘‘(i) the investment of the person in the the 1997 marketing year. ‘‘(2) FILING WITH COUNTY COMMITTEE.—The production of the crop is not less than 100 ‘‘(c) REFERENDUM.— assignment of an individual acreage limita- percent of the costs of production associated ‘‘(1) ANNOUNCEMENT OF QUOTA AND ALLOT- tion and individual marketing limitation with the crop; MENT.—Not later than December 15, 1998, the shall not be effective until evidence of the ‘‘(ii) the amount of the person’s return on Secretary pursuant to subsection (b) shall assignment, in such form as required by the the investment is dependent solely on the determine and announce— Secretary, is filed with and determined by sale price of the crop; and ‘‘(A) the quantity of the national market- the county committee for the county in ‘‘(iii) the person may not receive any of the ing quota for flue-cured tobacco for the 1999 which the farm involved is located. return before the sale of the crop. marketing year; and ‘‘(3) LIMITATION ON TILLABLE CROPLAND.— ‘‘(C) PERSONS NOT SHARING RISK.— ‘‘(B) the national acreage allotment and The total acreage assigned to any farm ‘‘(i) FORFEITURE.—Any person that fails to national average yield goal for the 1999 crop under this subsection shall not exceed the fully share in the risks of production under of flue-cured tobacco. acreage of cropland on the farm. this paragraph shall forfeit an individual to- ‘‘(2) SPECIAL REFERENDUM.—Not later than ‘‘(g) PROHIBITION ON SALE OR LEASING OF bacco production permit if, after notice and 30 days after the announcement of the quan- INDIVIDUAL TOBACCO PRODUCTION PERMITS.— opportunity for a hearing, the appropriate tity of the national marketing quota in 2001, ‘‘(1) IN GENERAL.—Except as provided in county committee determines that the con- the Secretary shall conduct a special ref- paragraphs (2) and (3), the Secretary shall ditions for forfeiture exist. erendum of the tobacco production permit not permit the sale and transfer, or lease and ‘‘(ii) REALLOCATION.—The Secretary shall holders that were the principal producers of transfer, of an individual tobacco production add the authority to produce flue-cured to- flue-cured tobacco of the 1997 crop to deter- permit issued under this section. bacco under the individual tobacco produc- mine whether the producers approve or op- ‘‘(2) TRANSFER TO DESCENDANTS.— tion permit forfeited under this subpara- pose the continuation of individual tobacco ‘‘(A) DEATH.—In the case of the death of a graph to the county production pool estab- production permits on an acreage-poundage person to whom an individual tobacco pro- lished under paragraph (8) for reallocation by basis as provided in this section for the 2002 duction permit has been issued under this the appropriate county committee. through 2004 marketing years. section, the permit shall transfer to the sur- ‘‘(D) NOTICE.—Notice of any determination ‘‘(3) APPROVAL OF PERMITS.—If the Sec- viving spouse of the person or, if there is no 2 made by a county committee under subpara- retary determines that more than 66 ⁄3 per- surviving spouse, to surviving direct de- graph (C) shall be mailed, as soon as prac- cent of the producers voting in the special scendants of the person. ticable, to the person involved. referendum approve the establishment of in- ‘‘(B) TEMPORARY INABILITY TO FARM.—In ‘‘(E) REVIEW.—If the person is dissatisfied dividual tobacco production permits on an the case of the death of a person to whom an with the determination, the person may re- acreage-poundage basis— individual tobacco production permit has quest, not later than 15 days after notice of ‘‘(A) individual tobacco production permits been issued under this section and whose de- the determination is received, a review of on an acreage-poundage basis as provided in scendants are temporarily unable to produce the determination by a local review commit- this section shall be in effect for the 2002 a crop of tobacco, the Secretary may hold tee under the procedures established under through 2004 marketing years; and the license in the name of the descendants section 363 for farm marketing quotas. ‘‘(B) marketing quotas on an acreage- for a period of not more than 18 months. ‘‘(7) COUNTY OF ORIGIN REQUIREMENT.—For poundage basis shall cease to be in effect for ‘‘(3) VOLUNTARY TRANSFERS.—A person that the 1999 and each subsequent crop of flue- the 2002 through 2004 marketing years. is eligible to obtain an individual tobacco cured tobacco, all tobacco produced pursuant ‘‘(4) DISAPPROVAL OF PERMITS.—If individ- production permit under this section may at to an individual tobacco production permit ual tobacco production permits on an acre- any time transfer all or part of the permit to shall be produced in the same county in age-poundage basis are not approved by more the person’s spouse or direct descendants 2 which was produced the tobacco produced than 66 ⁄3 percent of the producers voting in that are actively engaged in the production during the 1997 marketing year pursuant to the referendum, no marketing quotas on an of tobacco. the farm marketing quota or farm acreage acreage-poundage basis shall continue in ef- ‘‘(h) RESERVE.— allotment on which the individual tobacco fect that were proclaimed under section 317 ‘‘(1) IN GENERAL.—For each marketing year production permit is based. prior to the referendum. for which individual tobacco production per- ‘‘(8) COUNTY PRODUCTION POOL.— ‘‘(5) APPLICABLE MARKETING YEARS.—If in- mits are in effect under this section, the Sec- ‘‘(A) IN GENERAL.—The authority to dividual tobacco production permits have retary may establish a reserve from the na- produce flue-cured tobacco under an individ- been made effective for flue-cured tobacco on tional marketing quota in a quantity equal ual tobacco production permit that is for- an acreage-poundage basis pursuant to this to not more than 1 percent of the national feited, relinquished, or surrendered within a subsection, the Secretary shall, not later marketing quota to be available for— county may be reallocated by the appro- than December 15 of any future marketing ‘‘(A) making corrections of errors in indi- priate county committee to tobacco produc- year, announce a national marketing quota vidual acreage limitations and individual ers located in the same county that apply to for that type of tobacco for the next 3 suc- marketing limitations; the committee to produce flue-cured tobacco ceeding marketing years if the marketing ‘‘(B) adjusting inequities; and under the authority. year is the last year of 3 consecutive years ‘‘(C) establishing individual tobacco pro- ‘‘(B) PRIORITY.—In reallocating individual for which individual tobacco production per- duction permits for new tobacco producers tobacco production permits under this para- mits previously proclaimed will be in effect. (except that not less than two-thirds of the ‘‘(d) ANNUAL ANNOUNCEMENT OF NATIONAL graph, a county committee shall provide a reserve shall be for establishing such permits MARKETING QUOTA.—The Secretary shall de- priority to— for new tobacco producers). termine and announce the national market- ‘‘(i) an active tobacco producer that con- ‘‘(2) ELIGIBLE PERSONS.—To be eligible for a ing quota, national acreage allotment, and trols the authority to produce a quantity of new individual tobacco production permit, a national average yield goal for the second flue-cured tobacco under an individual to- and third marketing years of any 3-year pe- producer must not have been the principal bacco production permit that is equal to or riod for which individual tobacco production producer of tobacco during the immediately less than the average number of pounds of permits are in effect on or before the Decem- preceding 5 years. flue-cured tobacco that was produced by the ber 15 immediately preceding the beginning ‘‘(3) APPORTIONMENT FOR NEW PRODUCERS.— producer during each of the 1995 through 1997 of the marketing year to which the quota, The part of the reserve held for apportion- marketing years, as determined by the Sec- allotment, and goal apply. ment to new individual tobacco producers retary; and ‘‘(e) ANNUAL ANNOUNCEMENT OF INDIVIDUAL shall be allotted on the basis of— ‘‘(ii) a new tobacco producer. TOBACCO PRODUCTION PERMITS.—If a national ‘‘(A) land, labor, and equipment available ‘‘(C) CRITERIA.—Individual tobacco produc- marketing quota, national acreage allot- for the production of tobacco; tion permits shall be reallocated by the ap- ment, and national average yield goal are de- ‘‘(B) crop rotation practices; propriate county committee under this para- termined and announced, the Secretary shall ‘‘(C) soil and other physical factors affect- graph in a fair and equitable manner after provide for the determination of individual ing the production of tobacco; and taking into consideration— tobacco production permits, individual acre- ‘‘(D) the past tobacco-producing experience ‘‘(i) the experience of the producer; age limitations, and individual marketing of the producer. ‘‘(ii) the availability of land, labor, and limitations under this section for the crop ‘‘(4) PERMIT YIELD.—The permit yield for equipment for the production of tobacco; and marketing year covered by the deter- any producer for which a new individual to- ‘‘(iii) crop rotation practices; and minations. bacco production permit is established shall June 11, 1998 CONGRESSIONAL RECORD — SENATE S6223

be determined on the basis of available pro- (2) CONFORMING AMENDMENT.—Section (1) CRITERIA.—A group of workers (includ- ductivity data for the land involved and 422(c) of the Uruguay Round Agreements Act ing workers in any firm or subdivision of a yields for similar farms in the same county. (Public Law 103–465; 7 U.S.C. 1445 note) is firm involved in the manufacture, process- ‘‘(i) PENALTIES.— amended by striking ‘‘section 106(g), 106A, or ing, or warehousing of tobacco or tobacco ‘‘(1) PRODUCTION ON OTHER FARMS.—If any 106B of the Agricultural Act of 1949 (7 U.S.C. products) shall be certified as eligible to quantity of tobacco is marketed as having 1445(g), 1445–1, or 1445–2)’’ and inserting ‘‘sec- apply for adjustment assistance under this been produced under an individual acreage tion 106A or 106B of the Agricultural Act of section pursuant to a petition filed under limitation or individual marketing limita- 1949 (7 U.S.C. 1445–1, 1445–2)’’. subsection (b) if the Secretary of Labor de- tion assigned to a farm but was produced on (d) ADJUSTMENT FOR LAND RENTAL COSTS.— termines that a significant number or pro- a different farm, the individual acreage limi- Section 106 of the Agricultural Act of 1949 (7 portion of the workers in the workers’ firm tation or individual marketing limitation U.S.C. 1445) is amended by adding at the end or an appropriate subdivision of the firm for the following marketing year shall be the following: have become totally or partially separated, forfeited. ‘‘(h) ADJUSTMENT FOR LAND RENTAL or are threatened to become totally or par- ‘‘(2) FALSE REPORT.—If a person to which COSTS.—For each of the 1999 and 2000 mar- tially separated, and— an individual tobacco production permit is keting years for flue-cured tobacco, after (A) the sales or production, or both, of the issued files, or aids or acquiesces in the fil- consultation with producers, State farm or- firm or subdivision have decreased abso- ing of, a false report with respect to the as- ganizations and cooperative associations, the lutely; and signment of an individual acreage limitation Secretary shall make an adjustment in the (B) the implementation of the national to- or individual marketing limitation for a price support level for flue-cured tobacco bacco settlement contributed importantly to quantity of tobacco, the individual acreage equal to the annual change in the average the workers’ separation or threat of separa- limitation or individual marketing limita- cost per pound to flue-cured producers, as de- tion and to the decline in the sales or pro- tion for the following marketing year shall termined by the Secretary, under agree- duction of the firm or subdivision. be forfeited. ments through which producers rent land to (2) DEFINITION OF CONTRIBUTED IMPOR- ‘‘(j) MARKETING PENALTIES.— produce flue-cured tobacco.’’. TANTLY.—In paragraph (1)(B), the term ‘‘con- ‘‘(1) IN GENERAL.—When individual tobacco (e) FIRE-CURED AND DARK AIR-CURED TO- tributed importantly’’ means a cause that is production permits under this section are in BACCO PROGRAMS.— important but not necessarily more impor- effect, provisions with respect to penalties (1) LIMITATION ON TRANSFERS.—Section tant than any other cause. for the marketing of excess tobacco and the 318(g) of the Agricultural Adjustment Act of (3) REGULATIONS.—The Secretary shall other provisions contained in section 314 1938 (7 U.S.C. 13l4d(g)) is amended— issue regulations relating to the application shall apply in the same manner and to the (A) by striking ‘‘ten’’ and inserting ‘‘30’’; of the criteria described in paragraph (1) in same extent as they would apply under sec- and making preliminary findings under sub- section (b) and determinations under sub- tion 317(g) if farm marketing quotas were in (B) by inserting ‘‘during any crop year’’ section (c). effect. after ‘‘transferred to any farm’’. (b) PRELIMINARY FINDINGS AND BASIC AS- ‘‘(2) PRODUCTION ON OTHER FARMS.—If a pro- (2) LOSS OF ALLOTMENT OR QUOTA THROUGH SISTANCE.— ducer falsely identifies tobacco as having UNDERPLANTING.—Section 318 of the Agricul- tural Adjustment Act of 1938 (7 U.S.C. 1314d) (1) FILING OF PETITIONS.—A petition for cer- been produced on or marketed from a farm tification of eligibility to apply for adjust- to which an individual acreage limitation or is amended by adding at the end the follow- ing: ment assistance under this section may be individual marketing limitation has been as- filed by a group of workers (including work- ‘‘(k) LOSS OF ALLOTMENT OR QUOTA signed, future individual acreage limitations ers in any firm or subdivision of a firm in- and individual marketing limitations shall THROUGH UNDERPLANTING.—Effective for the 1999 and subsequent marketing years, no volved in the manufacture, processing, or be forfeited.’’. warehousing of tobacco or tobacco products) SEC. 1025. MODIFICATIONS IN FEDERAL TO- acreage allotment or acreage-poundage quota, other than a new marketing quota, or by their certified or recognized union or BACCO PROGRAMS. other duly authorized representative with (a) PROGRAM REFERENDA.—Section 312(c) of shall be established for a farm on which no fire-cured or dark air-cured tobacco was the Governor of the State in which the work- the Agricultural Adjustment Act of 1938 (7 ers’ firm or subdivision thereof is located. U.S.C. 1312(c)) is amended— planted or considered planted during at least 2 of the 3 crop years immediately preceding (2) FINDINGS AND ASSISTANCE.—On receipt (1) by striking ‘‘(c) Within thirty’’ and in- of a petition under paragraph (1), the Gov- serting the following: the crop year for which the acreage allot- ment or acreage-poundage quota would oth- ernor shall— ‘‘(c) REFERENDA ON QUOTAS.— erwise be established.’’. (A) notify the Secretary that the Governor ‘‘(1) IN GENERAL.—Not later than 30’’; and has received the petition; (2) by adding at the end the following: (f) EXPANSION OF TYPES OF TOBACCO SUB- JECT TO NO NET COST ASSESSMENT.— (B) within 10 days after receiving the peti- ‘‘(2) REFERENDA ON PROGRAM CHANGES.— (1) NO NET COST TOBACCO FUND.—Section tion— ‘‘(A) IN GENERAL.—In the case of any type 106A(d)(1)(A) of the Agricultural Act of 1949 (i) make a preliminary finding as to wheth- of tobacco for which marketing quotas are in er the petition meets the criteria described effect, on the receipt of a petition from more (7 U.S.C. 1445–1(d)(1)(A)) is amended— (A) in clause (ii), by inserting after ‘‘Bur- in subsection (a)(1); and than 5 percent of the producers of that type (ii) transmit the petition, together with a of tobacco in a State, the Secretary shall ley quota tobacco’’ the following: ‘‘and fire- cured and dark air-cured quota tobacco’’; statement of the finding under clause (i) and conduct a statewide referendum on any pro- reasons for the finding, to the Secretary for posal related to the lease and transfer of to- and (B) in clause (iii)— action under subsection (c); and bacco quota within a State requested by the (C) if the preliminary finding under sub- petition that is authorized under this part. (i) in the matter preceding subclause (I), by striking ‘‘Flue-cured or Burley tobacco’’ and paragraph (B)(i) is affirmative, ensure that ‘‘(B) APPROVAL OF PROPOSALS.—If a major- inserting ‘‘each kind of tobacco for which rapid response and basic readjustment serv- ity of producers of the type of tobacco in the ices authorized under other Federal laws are State approve a proposal in a referendum price support is made available under this Act, and each kind of like tobacco,’’; and made available to the workers. conducted under subparagraph (A), the Sec- (c) REVIEW OF PETITIONS BY SECRETARY; (ii) by striking subclause (II) and inserting retary shall implement the proposal in a CERTIFICATIONS.— the following: manner that applies to all producers and (1) IN GENERAL.—The Secretary, within 30 ‘‘(II) the sum of the amount of the per quota holders of that type of tobacco in the days after receiving a petition under sub- pound producer contribution and purchaser State.’’. section (b)(2)(B)(ii), shall determine whether assessment (if any) for the kind of tobacco (b) PURCHASE REQUIREMENTS.—Section 320B the petition meets the criteria described in payable under clauses (i) and (ii); and’’. of the Agricultural Adjustment Act of 1938 (7 subsection (a)(1). On a determination that (2) NO NET COST TOBACCO ACCOUNT.—Section U.S.C. 1314h) is amended— the petition meets the criteria, the Sec- 106B(d)(1) of the Agricultural Act of 1949 (7 (1) in subsection (c)— retary shall issue to workers covered by the U.S.C. 1445–2(d)(1)) is amended— (A) by striking ‘‘(c) The amount’’ and in- petition a certification of eligibility to apply (A) in subparagraph (B), by inserting after serting ‘‘(c) AMOUNT OF PENALTY.—For the for the assistance described in subsection (d). ‘‘Burley quota tobacco’’ the following: ‘‘and 1998 and subsequent marketing years, the (2) DENIAL OF CERTIFICATION.—On the de- fire-cured and dark air-cured tobacco’’; and amount’’; and nial of a certification with respect to a peti- (B) in subparagraph (C), by striking ‘‘Flue- (B) by striking paragraph (1) and inserting tion under paragraph (1), the Secretary shall cured and Burley tobacco’’ and inserting the following: review the petition in accordance with the ‘‘each kind of tobacco for which price sup- ‘‘(1) 105 percent of the average market requirements of other applicable assistance port is made available under this Act, and price for the type of tobacco involved during programs to determine if the workers may be each kind of like tobacco,’’. the preceding marketing year; and’’. certified under the other programs. (c) ELIMINATION OF TOBACCO MARKETING Subtitle C—Farmer and Worker Transition (d) COMPREHENSIVE ASSISTANCE.— ASSESSMENT.— Assistance (1) IN GENERAL.—Workers covered by a cer- (1) IN GENERAL.—Section 106 of the Agricul- SEC. 1031. TOBACCO WORKER TRANSITION PRO- tification issued by the Secretary under sub- tural Act of 1949 (7 U.S.C. 1445) is amended by GRAM. section (c)(1) shall be provided with benefits striking subsection (g). (a) GROUP ELIGIBILITY REQUIREMENTS.— and services described in paragraph (2) in the S6224 CONGRESSIONAL RECORD — SENATE June 11, 1998 same manner and to the same extent as SEC. 1032. FARMER OPPORTUNITY GRANTS. tendance for that year, the amount of the workers covered under a certification under Part A of title IV of the Higher Education grant shall be reduced to an amount equal to subchapter A of title II of the Trade Act of Act of 1965 (20 U.S.C. 1070 et seq.) is amended the cost of attendance at the institution. 1974 (19 U.S.C. 2271 et seq.), except that the by adding at the end the following: ‘‘(3) PROHIBITION.—No grant shall be award- total amount of payments under this section ‘‘Subpart 9—Farmer Opportunity Grants ed under this subpart to any individual who for any fiscal year shall not exceed ‘‘SEC. 420D. STATEMENT OF PURPOSE. is incarcerated in any Federal, State, or $25,000,000. ‘‘It is the purpose of this subpart to assist local penal institution. ‘‘(c) PERIOD OF ELIGIBILITY FOR GRANTS.— (2) BENEFITS AND SERVICES.—The benefits in making available the benefits of post- ‘‘(1) IN GENERAL.—The period during which and services described in this paragraph are secondary education to eligible students (de- a student may receive grants shall be the pe- the following: termined in accordance with section 420F) in riod required for the completion of the first (A) Employment services of the type de- institutions of higher education by providing scribed in section 235 of the Trade Act of 1974 undergraduate baccalaureate course of study farmer opportunity grants to all eligible stu- being pursued by that student at the institu- (19 U.S.C. 2295). dents. (B) Training described in section 236 of the tion at which the student is in attendance, ‘‘SEC. 420E. PROGRAM AUTHORITY; AMOUNT AND except that any period during which the stu- Trade Act of 1974 (19 U.S.C. 2296), except that DETERMINATIONS; APPLICATIONS. notwithstanding the provisions of section dent is enrolled in a noncredit or remedial ‘‘(a) PROGRAM AUTHORITY AND METHOD OF course of study as described in paragraph (2) 236(a)(2)(A) of that Act, the total amount of DISTRIBUTION.— payments for training under this section for shall not be counted for the purpose of this ‘‘(1) PROGRAM AUTHORITY.—From amounts paragraph. any fiscal year shall not exceed $12,500,000. made available under section 1011(d)(5) of the (C) Tobacco worker readjustment allow- ‘‘(2) CONSTRUCTION.—Nothing in this sec- LEAF Act, the Secretary, during the period tion shall be construed to— ances, which shall be provided in the same beginning July 1, 1999, and ending September manner as trade readjustment allowances ‘‘(A) exclude from eligibility courses of 30, 2024, shall pay to each eligible institution study that are noncredit or remedial in na- are provided under part I of subchapter B of such sums as may be necessary to pay to chapter 2 of title II of the Trade Act of 1974 ture and that are determined by the institu- each eligible student (determined in accord- tion to be necessary to help the student be (19 U.S.C. 2291 et seq.), except that— ance with section 420F) for each academic (i) the provisions of sections 231(a)(5)(C) prepared for the pursuit of a first under- year during which that student is in attend- graduate baccalaureate degree or certificate and 231(c) of that Act (19 U.S.C. 2291(a)(5)(C), ance at an institution of higher education, as 2291(c)), authorizing the payment of trade re- or, in the case of courses in English language an undergraduate, a farmer opportunity instruction, to be necessary to enable the adjustment allowances on a finding that it is grant in the amount for which that student student to utilize already existing knowl- not feasible or appropriate to approve a is eligible, as determined pursuant to sub- edge, training, or skills; and training program for a worker, shall not be section (b). Not less than 85 percent of the ‘‘(B) exclude from eligibility programs of applicable to payment of allowances under sums shall be advanced to eligible institu- study abroad that are approved for credit by this section; and tions prior to the start of each payment pe- the home institution at which the student is (ii) notwithstanding the provisions of sec- riod and shall be based on an amount re- enrolled. tion 233(b) of that Act (19 U.S.C. 2293(b)), in quested by the institution as needed to pay ‘‘(3) PROHIBITION.—No student is entitled to order for a worker to qualify for tobacco re- eligible students, except that this sentence receive farmer opportunity grant payments adjustment allowances under this section, shall not be construed to limit the authority concurrently from more than 1 institution or the worker shall be enrolled in a training of the Secretary to place an institution on a from the Secretary and an institution. program approved by the Secretary of the reimbursement system of payment. ‘‘(d) APPLICATIONS FOR GRANTS.— type described in section 236(a) of that Act ‘‘(2) CONSTRUCTION.—Nothing in this sec- ‘‘(1) IN GENERAL.—The Secretary shall from (19 U.S.C. 2296(a)) by the later of— tion shall be construed to prohibit the Sec- time to time set dates by which students (I) the last day of the 16th week of the retary from paying directly to students, in shall file applications for grants under this worker’s initial unemployment compensa- advance of the beginning of the academic subpart. The filing of applications under this tion benefit period; or term, an amount for which the students are subpart shall be coordinated with the filing (II) the last day of the 6th week after the eligible, in cases where the eligible institu- of applications under section 401(c). week in which the Secretary issues a certifi- tion elects not to participate in the disburse- ‘‘(2) INFORMATION AND ASSURANCES.—Each cation covering the worker. ment system required by paragraph (1). student desiring a grant for any year shall In cases of extenuating circumstances relat- ‘‘(3) DESIGNATION.—Grants made under this file with the Secretary an application for the ing to enrollment of a worker in a training subpart shall be known as ‘farmer oppor- grant containing such information and as- program under this section, the Secretary tunity grants’. surances as the Secretary may deem nec- may extend the time for enrollment for a pe- ‘‘(b) AMOUNT OF GRANTS.— essary to enable the Secretary to carry out riod of not to exceed 30 days. ‘‘(1) AMOUNTS.— the Secretary’s functions and responsibil- (D) Job search allowances of the type de- ‘‘(A) IN GENERAL.—The amount of the grant ities under this subpart. scribed in section 237 of the Trade Act of 1974 for a student eligible under this subpart ‘‘(e) DISTRIBUTION OF GRANTS TO STU- (19 U.S.C. 2297). shall be— DENTS.—Payments under this section shall (E) Relocation allowances of the type de- ‘‘(i) $1,700 for each of the academic years be made in accordance with regulations pro- scribed in section 238 of the Trade Act of 1974 1999–2000 through 2003–2004; mulgated by the Secretary for such purpose, (19 U.S.C. 2298). ‘‘(ii) $2,000 for each of the academic years in such manner as will best accomplish the 2004–2005 through 2008–2009; purpose of this section. Any disbursement al- (e) INELIGIBILITY OF INDIVIDUALS RECEIVING ‘‘(iii) $2,300 for each of the academic years lowed to be made by crediting the student’s PAYMENTS FOR LOST TOBACCO QUOTA.—No 2009–2010 through 2013–2014; account shall be limited to tuition and fees benefits or services may be provided under ‘‘(iv) $2,600 for each of the academic years and, in the case of institutionally owned this section to any individual who has re- 2014–2015 through 2018–2019; and housing, room and board. The student may ceived payments for lost tobacco quota ‘‘(v) $2,900 for each of the academic years elect to have the institution provide other under section 1021. 2019–2020 through 2023–2024. such goods and services by crediting the stu- (f) FUNDING.—Of the amounts appropriated ‘‘(B) PART-TIME RULE.—In any case where a dent’s account. to carry out this title, the Secretary may student attends an institution of higher edu- ‘‘(f) INSUFFICIENT FUNDING.—If, for any fis- cal year, the funds made available to carry use not to exceed $25,000,000 for each of fiscal cation on less than a full-time basis (includ- out this subpart are insufficient to satisfy years 1999 through 2008 to provide assistance ing a student who attends an institution of fully all grants for students determined to be higher education on less than a half-time under this section. eligible under section 420F, the amount of basis) during any academic year, the amount (g) EFFECTIVE DATE.—This section shall the grant provided under subsection (b) shall of the grant for which that student is eligi- take effect on the date that is the later of— be reduced on a pro rata basis among all eli- ble shall be reduced in proportion to the de- (1) October l, 1998; or gible students. gree to which that student is not so attend- (2) the date of enactment of this Act. ‘‘(g) TREATMENT OF INSTITUTIONS AND STU- ing on a full-time basis, in accordance with DENTS UNDER OTHER LAWS.—Any institution (h) TERMINATION DATE.—No assistance, a schedule of reductions established by the of higher education that enters into an vouchers, allowances, or other payments Secretary for the purposes of this subpara- agreement with the Secretary to disburse to may be provided under this section after the graph, computed in accordance with this students attending that institution the date that is the earlier of— subpart. The schedule of reductions shall be amounts those students are eligible to re- (1) the date that is 10 years after the effec- established by regulation and published in ceive under this subpart shall not be deemed, tive date of this section under subsection (g); the Federal Register. by virtue of the agreement, to be a contrac- or ‘‘(2) MAXIMUM.—No grant under this sub- tor maintaining a system of records to ac- (2) the date on which legislation establish- part shall exceed the cost of attendance (as complish a function of the Secretary. Recipi- ing a program providing dislocated workers described in section 472) at the institution at ents of farmer opportunity grants shall not with comprehensive assistance substantially which that student is in attendance. If, with be considered to be individual grantees for similar to the assistance provided by this respect to any student, it is determined that purposes of the Drug-Free Workplace Act of section becomes effective. the amount of a grant exceeds the cost of at- 1988 (41 U.S.C. 701 et seq.). June 11, 1998 CONGRESSIONAL RECORD — SENATE S6225 ‘‘SEC. 420F. STUDENT ELIGIBILITY. gible under subsection (a)(3) for a grant (B) in section 1031, the Secretary of Labor. ‘‘(a) IN GENERAL.—In order to receive any under this subpart. (6) TOBACCO PRODUCT IMPORTER.—The term grant under this subpart, a student shall— ‘‘(3) WAIVER.—Any institution of higher ‘‘tobacco product importer’’ has the meaning ‘‘(1) be a member of a tobacco farm family education at which the student is in attend- given the term ‘‘importer’’ in section 5702 of in accordance with subsection (b); ance may waive paragraph (1) or (2) for the Internal Revenue Code of 1986. ‘‘(2) be enrolled or accepted for enrollment undue hardship based on— (7) TOBACCO PRODUCT MANUFACTURER.— in a degree, certificate, or other program (in- ‘‘(A) the death of a relative of the student; (A) IN GENERAL.—The term ‘‘tobacco prod- cluding a program of study abroad approved ‘‘(B) the personal injury or illness of the uct manufacturer’’ has the meaning given for credit by the eligible institution at which student; or the term ‘‘manufacturer of tobacco prod- the student is enrolled) leading to a recog- ‘‘(C) special circumstances as determined ucts’’ in section 5702 of the Internal Revenue nized educational credential at an institu- by the institution. Code of 1986. tion of higher education that is an eligible ‘‘(d) STUDENTS WHO ARE NOT SECONDARY (B) EXCLUSION.—The term ‘‘tobacco prod- institution in accordance with section 487, SCHOOL GRADUATES.—In order for a student uct manufacturer’’ does not include a person and not be enrolled in an elementary or sec- who does not have a certificate of graduation that manufactures cigars or pipe tobacco. ondary school; from a school providing secondary education, (8) TOBACCO WAREHOUSE OWNER.—The term ‘‘(3) if the student is presently enrolled at or the recognized equivalent of the certifi- ‘‘tobacco warehouse owner’’ means a ware- an institution of higher education, be main- cate, to be eligible for any assistance under houseman that participated in an auction taining satisfactory progress in the course of this subpart, the student shall meet either 1 market (as defined in the first section of the study the student is pursuing in accordance of the following standards: Tobacco Inspection Act (7 U.S.C. 511)) during with subsection (c); ‘‘(1) EXAMINATION.—The student shall take the 1998 marketing year. ‘‘(4) not owe a refund on grants previously an independently administered examination (9) FLUE-CURED TOBACCO.—The term ‘‘flue- received at any institution of higher edu- and shall achieve a score, specified by the cured tobacco’’ includes type 21 and type 37 cation under this title, or be in default on Secretary, demonstrating that the student tobacco. can benefit from the any loan from a student loan fund at any in- Subtitle A—Tobacco Community stitution provided for in part D, or a loan * * * * * Revitalization made, insured, or guaranteed by the Sec- SEC. 1011. AUTHORIZATION OF APPROPRIATIONS. retary under this title for attendance at any There are appropriated and transferred to institution; FORD (AND OTHERS) AMENDMENT NO. 2695 the Secretary for each fiscal year such ‘‘(5) file with the institution of higher edu- amounts from the National Tobacco Trust cation that the student intends to attend, or (Ordered to lie on the table.) Fund established by section 401, other than is attending, a document, that need not be Mr. FORD (for himself, Mr. HOL- from amounts in the State Litigation Settle- notarized, but that shall include— LINGS, and Mr. ROBB) submitted an ment Account, as may be necessary to carry ‘‘(A) a statement of educational purpose amendment intended to be proposed by out the provisions of this title. stating that the money attributable to the them to amendment No. 2498 proposed grant will be used solely for expenses related SEC. 1012. EXPENDITURES. to attendance or continued attendance at by Mr. LUGAR to the bill, S. 1415, supra; The Secretary is authorized, subject to ap- the institution; and as follows: propriations, to make payments under— ‘‘(B) the student’s social security number; In lieu of the matter proposed to be in- (1) section 1021 for payments for lost to- and serted, insert the following: bacco quota for each of fiscal years 1999 ‘‘(6) be a citizen of the United States. TITLE X—LONG-TERM ECONOMIC through 2023, but not to exceed $1,650,000,000 for any fiscal year except to the extent the ‘‘(b) TOBACCO FARM FAMILIES.— ASSISTANCE FOR FARMERS payments are made in accordance with sub- ‘‘(1) IN GENERAL.—For the purpose of sub- SEC. 1001. SHORT TITLE. section (d)(12) or (e)(9) of section 1021; section (a)(1), a student is a member of a to- This title may be cited as the ‘‘Long-Term (2) section 1022 for industry payments for bacco farm family if during calendar year Economic Assistance for Farmers Act’’ or all costs of the Department of Agriculture 1998 the student was— the ‘‘LEAF Act’’. associated with the production of tobacco; ‘‘(A) an individual who— SEC. 1002. DEFINITIONS. (3) section 1023 for tobacco community eco- ‘‘(i) is a participating tobacco producer (as In this title: nomic development grants, but not to ex- defined in section 1002 of the LEAF Act) who (1) PARTICIPATING TOBACCO PRODUCER.—The ceed— is a principal producer of tobacco on a farm; term ‘‘participating tobacco producer’’ (A) $375,000,000 for each of fiscal years 1999 or means a quota holder, quota lessee, or quota through 2008, less any amount required to be ‘‘(ii) is otherwise actively engaged in the tenant. paid under section 1022 for the fiscal year; production of tobacco; (2) QUOTA HOLDER.—The term ‘‘quota hold- and ‘‘(B) a spouse, son, daughter, stepson, or er’’ means an owner of a farm on January 1, (B) $450,000,000 for each of fiscal year 2009 stepdaughter of an individual described in 1998, for which a tobacco farm marketing through 2023, less any amount required to be subparagraph (A); quota or farm acreage allotment was estab- paid under section 1022 during the fiscal ‘‘(C) an individual who was a dependent lished under the Agricultural Adjustment year; (within the meaning of section 152 of the In- Act of 1938 (7 U.S.C. 1281 et seq.). (4) section 1031 for assistance provided ternal Revenue Code of 1986) of an individual (3) QUOTA LESSEE.—The term ‘‘quota les- under the tobacco worker transition pro- described in subparagraph (A). see’’ means— gram, but not to exceed $25,000,000 for any ‘‘(2) ADMINISTRATION.—On request, the Sec- (A) a producer that owns a farm that pro- fiscal year; and retary of Agriculture shall provide to the duced tobacco pursuant to a lease and trans- (5) subpart 9 of part A of title IV of the Secretary such information as is necessary fer to that farm of all or part of a tobacco Higher Education Act of 1965 for farmer op- to carry out this subsection. farm marketing quota or farm acreage allot- portunity grants, but not to exceed— ‘‘(c) SATISFACTORY PROGRESS.— ment established under the Agricultural Ad- (A) $42,500,000 for each of the academic ‘‘(1) IN GENERAL.—For the purpose of sub- justment Act of 1938 (7 U.S.C. 1281 et seq.) for years 1999–2000 through 2003–2004; section (a)(3), a student is maintaining satis- any of the 1995, 1996, or 1997 crop years; or (B) $50,000,000 for each of the academic factory progress if— (B) a producer that rented land from a years 2004–2005 through 2008–2009; ‘‘(A) the institution at which the student is farm operator to produce tobacco under a to- (C) $57,500,000 for each of the academic in attendance reviews the progress of the bacco farm marketing quota or farm acreage years 2009–2010 through 2013–2014; student at the end of each academic year, or allotment established under the Agricultural (D) $65,000,000 for each of the academic its equivalent, as determined by the institu- Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) years 2014–2015 through 2018–2019; and tion; and for any of the 1995, 1996, or 1997 crop years. (E) $72,500,000 for each of the academic ‘‘(B) the student has at least a cumulative (4) QUOTA TENANT.—The term ‘‘quota ten- years 2019–2020 through 2023–2024. C average or its equivalent, or academic ant’’ means a producer that— standing consistent with the requirements (A) is the principal producer, as deter- SEC. 1013. BUDGETARY TREATMENT. for graduation, as determined by the institu- mined by the Secretary, of tobacco on a farm This subtitle constitutes budget authority tion, at the end of the second such academic where tobacco is produced pursuant to a to- in advance of appropriations Acts and rep- year. bacco farm marketing quota or farm acreage resents the obligation of the Federal Govern- ment to provide payments to States and eli- ‘‘(2) SPECIAL RULE.—Whenever a student allotment established under the Agricultural fails to meet the eligibility requirements of Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) gible persons in accordance with this title. subsection (a)(3) as a result of the applica- for any of the 1995, 1996, or 1997 crop years; Subtitle B—Tobacco Market Transition tion of this subsection and subsequent to and Assistance that failure the student has academic stand- (B) is not a quota holder or quota lessee. SEC. 1021. PAYMENTS FOR LOST TOBACCO ing consistent with the requirements for (5) SECRETARY.—The term ‘‘Secretary’’ QUOTA. graduation, as determined by the institu- means— (a) IN GENERAL.—Beginning with the 1999 tion, for any grading period, the student (A) in subtitles A and B, the Secretary of marketing year, the Secretary shall make may, subject to this subsection, again be eli- Agriculture; and payments for lost tobacco quota to eligible S6226 CONGRESSIONAL RECORD — SENATE June 11, 1998 quota holders, quota lessees, and quota ten- (i) the average tobacco farm marketing determined by the Secretary, shall be given ants as reimbursement for lost tobacco quota or allotment for the 1995 through 1997 the option of having an allotment of the quota. marketing years; and farm marketing quota or farm acreage allot- (ii) the average yield per acre for the farm ment reallocated to a farm owned by the (b) ELIGIBILITY.—To be eligible to receive for the type of tobacco for the marketing quota lessee or quota tenant. payments under this section, a quota holder, years. (B) CONDITIONS FOR REALLOCATION.— quota lessee, or quota tenant shall— (B) YIELDS NOT AVAILABLE.—If the average (i) TIMING.—A quota lessee or quota tenant (1) prepare and submit to the Secretary an yield per acre is not available for a farm, the that is given the option of having an allot- application at such time, in such manner, Secretary shall calculate the base quota for ment of a farm marketing quota or farm and containing such information as the Sec- the quota holder, quota lessee, or quota ten- acreage allotment reallocated to a farm retary may require, including information ant (based on a poundage conversion) by de- owned by the quota lessee or quota tenant sufficient to make the demonstration re- termining the amount equal to the product under subparagraph (A) shall have 1 year quired under paragraph (2); and obtained by multiplying— from the date on which a farm marketing (2) demonstrate to the satisfaction of the (i) the average tobacco farm marketing quota or farm acreage allotment is relin- Secretary that, with respect to the 1997 mar- quota or allotment for the 1995 through 1997 quished under paragraph (2) to exercise the keting year— marketing years; and option. (A) the producer was a quota holder and re- (ii) the average county yield per acre for (ii) LIMITATION ON ACREAGE ALLOTMENT.—In alized income (or would have realized in- the county in which the farm is located for the case of a farm acreage allotment, the come, as determined by the Secretary, but the type of tobacco for the marketing years. acreage allotment determined for any farm for a medical hardship or crop disaster dur- (d) PAYMENTS FOR LOST TOBACCO QUOTA subsequent to any reallocation under sub- ing the 1997 marketing year) from the pro- FOR TYPES OF TOBACCO OTHER THAN FLUE- paragraph (A) shall not exceed 50 percent of duction of tobacco through— CURED TOBACCO.— the acreage of cropland of the farm owned by (i) the active production of tobacco; (1) ALLOCATION OF FUNDS.—Of the amounts the quota lessee or quota tenant. (ii) the lease and transfer of tobacco quota made available under section 1011(d)(1) for (iii) LIMITATION ON MARKETING QUOTA.—In to another farm; payments for lost tobacco quota, the Sec- the case of a farm marketing quota, the mar- (iii) the rental of all or part of the farm of retary shall make available for payments keting quota determined for any farm subse- the quota holder, including the right to under this subsection an amount that bears quent to any reallocation under subpara- produce tobacco, to another tobacco pro- the same ratio to the amounts made avail- graph (A) shall not exceed an amount deter- ducer; or able as— mined by multiplying— (iv) the hiring of a quota tenant to produce (A) the sum of all national marketing (I) the average county farm yield, as deter- tobacco; quotas for all types of tobacco other than mined by the Secretary; and (B) the producer was a quota lessee; or flue-cured tobacco during the 1995 through (II) 50 percent of the acreage of cropland of (C) the producer was a quota tenant. 1997 marketing years; bears to the farm owned by the quota lessee or quota (B) the sum of all national marketing tenant. (c) BASE QUOTA LEVEL.— quotas for all types of tobacco during the (C) ELIGIBILITY OF LESSEE OR TENANT FOR (1) IN GENERAL.—The Secretary shall deter- 1995 through 1997 marketing years. PAYMENTS.—If a farm marketing quota or mine, for each quota holder, quota lessee, (2) OPTION TO RELINQUISH QUOTA.— farm acreage allotment is reallocated to a and quota tenant, the base quota level for (A) IN GENERAL.—Each quota holder, for quota lessee or quota tenant under subpara- the 1995 through 1997 marketing years. types of tobacco other than flue-cured to- graph (A)— (2) QUOTA HOLDERS.—The base quota level bacco, shall be given the option to relinquish (i) the quota lessee or quota tenant shall for a quota holder shall be equal to the aver- the farm marketing quota or farm acreage not be eligible for any additional payments age tobacco farm marketing quota estab- allotment of the quota holder in exchange under paragraph (5) or (6) as a result of the lished for the farm owned by the quota hold- for a payment made under paragraph (3). reallocation; and er for the 1995 through 1997 marketing years. (B) NOTIFICATION.—A quota holder shall (ii) the base quota level for the quota les- (3) QUOTA LESSEES.—The base quota level give notification of the intention of the see or quota tenant shall not be increased as for a quota lessee shall be equal to— quota holder to exercise the option at such a result of the reallocation. (A) 50 percent of the average number of time and in such manner as the Secretary (D) REALLOCATION TO QUOTA HOLDERS WITH- pounds of tobacco quota established for the may require, but not later than January 15, IN SAME COUNTY OR STATE.— farm for the 1995 through 1997 marketing 1999. (i) IN GENERAL.—Except as provided in years— (3) PAYMENTS FOR LOST TOBACCO QUOTA TO clause (ii), if there was no quota lessee or (i) that was leased and transferred to a QUOTA HOLDERS EXERCISING OPTIONS TO RELIN- quota tenant for the farm marketing quota farm owned by the quota lessee; or QUISH QUOTA.— or farm acreage allotment for a type of to- (ii) that was rented to the quota lessee for (A) IN GENERAL.—Subject to subparagraph bacco, or if no quota lessee or quota tenant the right to produce the tobacco; less (E), for each of fiscal years 1999 through 2008, exercises an option of having an allotment of (B) 25 percent of the average number of the Secretary shall make annual payments the farm marketing quota or farm acreage pounds of tobacco quota described in sub- for lost tobacco quota to each quota holder allotment for a type of tobacco reallocated, paragraph (A) for which a quota tenant was that has relinquished the farm marketing the Secretary shall reapportion the farm the principal producer of the tobacco quota. quota or farm acreage allotment of the quota marketing quota or farm acreage allotment (4) QUOTA TENANTS.—The base quota level holder under paragraph (2). among the remaining quota holders for the for a quota tenant shall be equal to the sum (B) AMOUNT.—The amount of a payment type of tobacco within the same county. of— made to a quota holder described in subpara- (ii) CROSS-COUNTY LEASING.—In a State in (A) 50 percent of the average number of graph (A) for a marketing year shall equal which cross-county leasing is authorized pur- pounds of tobacco quota established for a 1⁄10 of the lifetime limitation established suant to section 319(l) of the Agricultural farm for the 1995 through 1997 marketing under subparagraph (E). Adjustment Act of 1938 (7 U.S.C. 1314e(l)), the years— (C) TIMING.—The Secretary shall begin Secretary shall reapportion the farm mar- (i) that was owned by a quota holder; and making annual payments under this para- keting quota among the remaining quota (ii) for which the quota tenant was the graph for the marketing year in which the holders for the type of tobacco within the principal producer of the tobacco on the farm marketing quota or farm acreage allot- same State. farm; and ment is relinquished. (iii) ELIGIBILITY OF QUOTA HOLDER FOR PAY- (B) 25 percent of the average number of (D) ADDITIONAL PAYMENTS.—The Secretary MENTS.—If a farm marketing quota is re- pounds of tobacco quota for the 1995 through may increase annual payments under this apportioned to a quota holder under this sub- 1997 marketing years— paragraph in accordance with paragraph paragraph— (i)(I) that was leased and transferred to a (7)(E) to the extent that funding is available. (I) the quota holder shall not be eligible for farm owned by the quota lessee; or (E) LIFETIME LIMITATION ON PAYMENTS.— any additional payments under paragraph (5) (II) for which the rights to produce the to- The total amount of payments made under or (6) as a result of the reapportionment; and bacco were rented to the quota lessee; and this paragraph to a quota holder shall not (II) the base quota level for the quota hold- (ii) for which the quota tenant was the exceed the product obtained by multiplying er shall not be increased as a result of the re- principal producer of the tobacco on the the base quota level for the quota holder by apportionment. farm. $8 per pound. (E) SPECIAL RULE FOR TENANT OF LEASED (5) MARKETING QUOTAS OTHER THAN POUND- (4) REISSUANCE OF QUOTA.— TOBACCO.—If a quota holder exercises an op- AGE QUOTAS.— (A) REALLOCATION TO LESSEE OR TENANT.— tion to relinquish a tobacco farm marketing (A) IN GENERAL.—For each type of tobacco If a quota holder exercises an option to relin- quota or farm acreage allotment under para- for which there is a marketing quota or al- quish a tobacco farm marketing quota or graph (2), the farm marketing quota or farm lotment (on an acreage basis), the base quota farm acreage allotment under paragraph (2), acreage allotment shall be divided evenly be- level for each quota holder, quota lessee, or a quota lessee or quota tenant that was the tween, and the option of reallocating the quota tenant shall be determined in accord- primary producer during the 1997 marketing farm marketing quota or farm acreage allot- ance with this subsection (based on a pound- year of tobacco pursuant to the farm mar- ment shall be offered in equal portions to, age conversion) by multiplying— keting quota or farm acreage allotment, as the quota lessee and to the quota tenant, if— June 11, 1998 CONGRESSIONAL RECORD — SENATE S6227

(i) during the 1997 marketing year, the (A) IN GENERAL.—Except as otherwise pro- lished under paragraph (7) shall transfer to farm marketing quota or farm acreage allot- vided in this paragraph, the total amount the new owner of the farm to the same ex- ment was leased and transferred to a farm payable under this subsection for any mar- tent and in the same manner as those provi- owned by the quota lessee; and keting year shall not exceed the amount sions applied to the previous quota holder. (ii) the quota tenant was the primary pro- made available under paragraph (1). (11) DEATH OF QUOTA LESSEE OR QUOTA TEN- ducer, as determined by the Secretary, of to- (B) ACCELERATED PAYMENTS.—Paragraph ANT.—If a quota lessee or quota tenant that bacco pursuant to the farm marketing quota (1) shall not apply if accelerated payments is entitled to payments under this subsection or farm acreage allotment. for lost tobacco quota are made in accord- dies and is survived by a spouse or 1 or more (5) PAYMENTS FOR LOST TOBACCO QUOTA TO ance with paragraph (12). dependents, the right to receive the pay- QUOTA HOLDERS.— (C) REDUCTIONS.—If the sum of the ments shall transfer to the surviving spouse (A) IN GENERAL.—Except as otherwise pro- amounts determined under paragraphs (3), or, if there is no surviving spouse, to the sur- vided in this subsection, during any market- (5), and (6) for a marketing year exceeds the viving dependents in equal shares. ing year in which the national marketing amount made available under paragraph (1), (12) ACCELERATION OF PAYMENTS.— quota for a type of tobacco is less than the the Secretary shall make a pro rata reduc- (A) IN GENERAL.—On the occurrence of any average national marketing quota for the tion in the amounts payable under para- of the events described in subparagraph (B), 1995 through 1997 marketing years, the Sec- graphs (5) and (6) to quota holders, quota les- the Secretary shall make an accelerated retary shall make payments for lost tobacco sees, and quota tenants under this sub- lump sum payment for lost tobacco quota as quota to each quota holder, for types of to- section to ensure that the total amount of established under paragraphs (5) and (6) to payments for lost tobacco quota does not ex- bacco other than flue-cured tobacco, that is each quota holder, quota lessee, and quota ceed the amount made available under para- eligible under subsection (b), and has not ex- tenant for any affected type of tobacco in ac- graph (1). ercised an option to relinquish a tobacco cordance with subparagraph (C). (D) ROLLOVER OF PAYMENTS FOR LOST TO- farm marketing quota or farm acreage allot- (B) TRIGGERING EVENTS.—The Secretary BACCO QUOTA.—Subject to subparagraph (A), ment under paragraph (2), in an amount that shall make accelerated payments under sub- if the Secretary makes a reduction in ac- is equal to the product obtained by multiply- cordance with subparagraph (C), the amount paragraph (A) if after the date of enactment ing— of the reduction shall be applied to the next of this Act— (i) the number of pounds by which the marketing year and added to the payments (i) subject to subparagraph (D), for 3 con- basic farm marketing quota (or poundage for lost tobacco quota for the marketing secutive marketing years, the national mar- conversion) is less than the base quota level year. keting quota or national acreage allotment for the quota holder; and (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- for a type of tobacco is less than 50 percent (ii) $4 per pound. ERS EXERCISING OPTION TO RELINQUISH of the national marketing quota or national OUNDAGE CONVERSION FOR MARKETING (B) P QUOTA.—If the amount made available under acreage allotment for the type of tobacco for QUOTAS OTHER THAN POUNDAGE QUOTAS.— paragraph (1) exceeds the sum of the the 1998 marketing year; or (i) IN GENERAL.—For each type of tobacco amounts determined under paragraphs (3), (ii) Congress repeals or makes ineffective, for which there is a marketing quota or al- (5), and (6) for a marketing year, the Sec- directly or indirectly, any provision of— lotment (on an acreage basis), the poundage retary shall distribute the amount of the ex- (I) section 316 of the Agricultural Adjust- conversion for each quota holder during a cess pro rata to quota holders that have ex- ment Act of 1938 (7 U.S.C. 1314b); marketing year shall be determined by mul- ercised an option to relinquish a tobacco (II) section 319 of the Agricultural Adjust- tiplying— farm marketing quota or farm acreage allot- ment Act of 1938 (7 U.S.C. 1314e); (I) the basic farm acreage allotment for ment under paragraph (2) by increasing the (III) section 106 of the Agricultural Act of the farm for the marketing year; and amount payable to each such holder under 1949 (7 U.S.C. 1445); (II) the average yield per acre for the farm paragraph (3). (IV) section 106A of the Agricultural Act of for the type of tobacco. (9) SUBSEQUENT SALE AND TRANSFER OF 1949 (7 U.S.C. 1445–1); or (ii) YIELD NOT AVAILABLE.—If the average QUOTA.—Effective beginning with the 1999 (V) section 106B of the Agricultural Act of yield per acre is not available for a farm, the marketing year, on the sale and transfer of a 1949 (7 U.S.C. 1445–2). Secretary shall calculate the poundage con- farm marketing quota or farm acreage allot- (C) AMOUNT.—The amount of the acceler- version for each quota holder during a mar- ment under section 316(g) or 319(g) of the Ag- ated payments made to each quota holder, keting year by multiplying— ricultural Adjustment Act of 1938 (7 U.S.C. quota lessee, and quota tenant under this (I) the basic farm acreage allotment for 1314b(g), 1314e(g))— subsection shall be equal to— the farm for the marketing year; and (A) the person that sold and transferred (i) the amount of the lifetime limitation (II) the average county yield per acre for the quota or allotment shall have— established for the quota holder, quota les- the county in which the farm is located for (i) the base quota level attributable to the see, or quota tenant under paragraph (7); less the type of tobacco. person reduced by the base quota level at- (ii) any payments for lost tobacco quota (6) PAYMENTS FOR LOST TOBACCO QUOTA TO tributable to the quota that is sold and received by the quota holder, quota lessee, or QUOTA LESSEES AND QUOTA TENANTS.—Except transferred; and quota tenant before the occurrence of any of as otherwise provided in this subsection, dur- (ii) the lifetime limitation on payments es- the events described in subparagraph (B). ing any marketing year in which the na- tablished under paragraph (7) attributable to (D) REFERENDUM VOTE NOT A TRIGGERING tional marketing quota for a type of tobacco the person reduced by the product obtained EVENT.—A referendum vote of producers for is less than the average national marketing by multiplying— any type of tobacco that results in the na- quota for the type of tobacco for the 1995 (I) the base quota level attributable to the tional marketing quota or national acreage through 1997 marketing years, the Secretary quota; and allotment not being in effect for the type of shall make payments for lost tobacco quota (II) $8 per pound; and tobacco shall not be considered a triggering to each quota lessee and quota tenant, for (B) if the quota or allotment has never event under this paragraph. types of tobacco other than flue-cured to- been relinquished by a previous quota holder (13) BAN ON SUBSEQUENT SALE OR LEASING OF bacco, that is eligible under subsection (b) in under paragraph (2), the person that acquired FARM MARKETING QUOTA OR FARM ACREAGE AL- an amount that is equal to the product ob- the quota shall have— LOTMENT TO QUOTA HOLDERS EXERCISING OP- tained by multiplying— (i) the base quota level attributable to the TION TO RELINQUISH QUOTA.—No quota holder (A) the percentage by which the national person increased by the base quota level at- that exercises the option to relinquish a marketing quota for the type of tobacco is tributable to the quota that is sold and farm marketing quota or farm acreage allot- less than the average national marketing transferred; and ment for any type of tobacco under para- quota for the type of tobacco for the 1995 (ii) the lifetime limitation on payments es- graph (2) shall be eligible to acquire a farm through 1997 marketing years; tablished under paragraph (7) attributable to marketing quota or farm acreage allotment (B) the base quota level for the quota les- the person— for the type of tobacco, or to obtain the lease see or quota tenant; and (I) increased by the product obtained by or transfer of a farm marketing quota or (C) $4 per pound. multiplying— farm acreage allotment for the type of to- (7) LIFETIME LIMITATION ON PAYMENTS.—Ex- (aa) the base quota level attributable to bacco, for a period of 25 crop years after the cept as otherwise provided in this sub- the quota; and date on which the quota or allotment was re- section, the total amount of payments made (bb) $8 per pound; but linquished. under this subsection to a quota holder, (II) decreased by any payments under para- quota lessee, or quota tenant during the life- graph (5) for lost tobacco quota previously (e) PAYMENTS FOR LOST TOBACCO QUOTA time of the quota holder, quota lessee, or made that are attributable to the quota that FOR FLUE-CURED TOBACCO.— quota tenant shall not exceed the product is sold and transferred. (1) ALLOCATION OF FUNDS.—Of the amounts obtained by multiplying— (10) SALE OR TRANSFER OF FARM.—On the made available under section 1011(d)(1) for (A) the base quota level for the quota hold- sale or transfer of ownership of a farm that payments for lost tobacco quota, the Sec- er, quota lessee, or quota tenant; and is owned by a quota holder, the base quota retary shall make available for payments (B) $8 per pound. level established under subsection (c), the under this subsection an amount that bears (8) LIMITATIONS ON AGGREGATE ANNUAL PAY- right to payments under paragraph (5), and the same ratio to the amounts made avail- MENTS.— the lifetime limitation on payments estab- able as— S6228 CONGRESSIONAL RECORD — SENATE June 11, 1998

(A) the sum of all national marketing (B) AMOUNT.—The amount of a payment lump sum payment for lost flue-cured to- quotas for flue-cured tobacco during the 1995 made to a quota lessee or quota tenant de- bacco quota as established under paragraphs through 1997 marketing years; bears to scribed in subparagraph (A) for a marketing (3), (4), and (5) to each quota holder, quota (B) the sum of all national marketing year shall be equal to 1⁄10 of the lifetime limi- lessee, and quota tenant for flue-cured to- quotas for all types of tobacco during the tation established under paragraph (6). bacco in accordance with subparagraph (C). 1995 through 1997 marketing years. (C) TIMING.—The Secretary shall begin (B) TRIGGERING EVENTS.—The Secretary (2) RELINQUISHMENT OF QUOTA.— making annual payments under this para- shall make accelerated payments under sub- (A) IN GENERAL.—Each quota holder of flue- graph for the marketing year in which the paragraph (A) if after the date of enactment cured tobacco shall relinquish the farm mar- individual tobacco production permit is re- of this Act— keting quota or farm acreage allotment in linquished. (i) subject to subparagraph (D), for 3 con- exchange for a payment made under para- (D) ADDITIONAL PAYMENTS.—The Secretary secutive marketing years, the national mar- graph (3) due to the transition from farm may increase annual payments under this keting quota or national acreage allotment marketing quotas as provided under section paragraph in accordance with paragraph for flue-cured tobacco is less than 50 percent 317 of the Agricultural Adjustment Act of (7)(E) to the extent that funding is available. of the national marketing quota or national 1938 for flue-cured tobacco to individual to- (E) PROHIBITION AGAINST PERMIT EXPAN- acreage allotment for flue-cured tobacco for bacco production permits as provided under SION.—A quota lessee or quota tenant that the 1998 marketing year; or section 317A of the Agricultural Adjustment receives a payment under this paragraph (ii) Congress repeals or makes ineffective, Act of 1938 for flue-cured tobacco. shall be ineligible to receive any new or in- directly or indirectly, any provision of— creased tobacco production permit from the (I) section 316 of the Agricultural Adjust- (B) NOTIFICATION.—The Secretary shall no- county production pool established under tify the quota holders of the relinquishment ment Act of 1938 (7 U.S.C. 1314b); section 317A(b)(8) of the Agricultural Adjust- (II) section 319 of the Agricultural Adjust- of their quota or allotment at such time and ment Act of 1938. ment Act of 1938 (7 U.S.C. 1314e); in such manner as the Secretary may re- (6) LIFETIME LIMITATION ON PAYMENTS.—Ex- (III) section 106 of the Agricultural Act of quire, but not later than November 15, 1998. cept as otherwise provided in this sub- 1949 (7 U.S.C. 1445); (3) PAYMENTS FOR LOST FLUE-CURED TO- section, the total amount of payments made (IV) section 106A of the Agricultural Act of BACCO QUOTA TO QUOTA HOLDERS THAT RELIN- under this subsection to a quota holder, 1949 (7 U.S.C. 1445–1); QUISH QUOTA.— quota lessee, or quota tenant during the life- (V) section 106B of the Agricultural Act of (A) IN GENERAL.—For each of fiscal years time of the quota holder, quota lessee, or 1949 (7 U.S.C. 1445–2); or 1999 through 2008, the Secretary shall make quota tenant shall not exceed the product (VI) section 317A of the Agricultural Ad- annual payments for lost flue-cured tobacco obtained by multiplying— justment Act of 1938. to each quota holder that has relinquished (A) the base quota level for the quota hold- (C) AMOUNT.—The amount of the acceler- the farm marketing quota or farm acreage er, quota lessee, or quota tenant; and ated payments made to each quota holder, allotment of the quota holder under para- (B) $8 per pound. quota lessee, and quota tenant under this graph (2). (7) LIMITATIONS ON AGGREGATE ANNUAL PAY- subsection shall be equal to— (B) AMOUNT.—The amount of a payment MENTS.— (i) the amount of the lifetime limitation made to a quota holder described in subpara- (A) IN GENERAL.—Except as otherwise pro- established for the quota holder, quota les- graph (A) for a marketing year shall equal vided in this paragraph, the total amount see, or quota tenant under paragraph (6); less 1⁄10 of the lifetime limitation established payable under this subsection for any mar- (ii) any payments for lost flue-cured to- under paragraph (6). keting year shall not exceed the amount bacco quota received by the quota holder, (C) TIMING.—The Secretary shall begin made available under paragraph (1). quota lessee, or quota tenant before the oc- making annual payments under this para- (B) ACCELERATED PAYMENTS.—Paragraph currence of any of the events described in graph for the marketing year in which the (1) shall not apply if accelerated payments subparagraph (B). farm marketing quota or farm acreage allot- for lost flue-cured tobacco quota are made in (D) REFERENDUM VOTE NOT A TRIGGERING ment is relinquished. accordance with paragraph (9). EVENT.—A referendum vote of producers for (D) ADDITIONAL PAYMENTS.—The Secretary (C) REDUCTIONS.—If the sum of the flue-cured tobacco that results in the na- may increase annual payments under this amounts determined under paragraphs (3), tional marketing quota or national acreage paragraph in accordance with paragraph (4), and (5) for a marketing year exceeds the allotment not being in effect for flue-cured (7)(E) to the extent that funding is available. amount made available under paragraph (1), tobacco shall not be considered a triggering (4) PAYMENTS FOR LOST FLUE-CURED TO- the Secretary shall make a pro rata reduc- event under this paragraph. BACCO QUOTA TO QUOTA LESSEES AND QUOTA tion in the amounts payable under paragraph SEC. 1022. INDUSTRY PAYMENTS FOR ALL DE- TENANTS THAT HAVE NOT RELINQUISHED PER- (4) to quota lessees and quota tenants under PARTMENT COSTS ASSOCIATED MITS.— this subsection to ensure that the total WITH TOBACCO PRODUCTION. (A) IN GENERAL.—Except as otherwise pro- amount of payments for lost flue-cured to- (a) IN GENERAL.—The Secretary shall use vided in this subsection, during any market- bacco quota does not exceed the amount such amounts remaining unspent and obli- ing year in which the national marketing made available under paragraph (1). gated at the end of each fiscal year to reim- quota for flue-cured tobacco is less than the (D) ROLLOVER OF PAYMENTS FOR LOST FLUE- burse the Secretary for— average national marketing quota for the CURED TOBACCO QUOTA.—Subject to subpara- (1) costs associated with the administra- 1995 through 1997 marketing years, the Sec- graph (A), if the Secretary makes a reduc- tion of programs established under this title retary shall make payments for lost tobacco tion in accordance with subparagraph (C), and amendments made by this title; quota to each quota lessee or quota tenant the amount of the reduction shall be applied (2) costs associated with the administra- that— to the next marketing year and added to the tion of the tobacco quota and price support (i) is eligible under subsection (b); payments for lost flue-cured tobacco quota programs administered by the Secretary; (ii) has been issued an individual tobacco for the marketing year. (3) costs to the Federal Government of car- production permit under section 317A(b) of (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- rying out crop insurance programs for to- the Agricultural Adjustment Act of 1938; and ERS EXERCISING OPTION TO RELINQUISH QUOTAS bacco; (iii) has not exercised an option to relin- OR PERMITS, OR TO QUOTA LESSEES OR QUOTA (4) costs associated with all agricultural quish the permit. TENANTS RELINQUISHING PERMITS.—If the research, extension, or education activities (B) AMOUNT.—The amount of a payment amount made available under paragraph (1) associated with tobacco; made to a quota lessee or quota tenant de- exceeds the sum of the amounts determined (5) costs associated with the administra- scribed in subparagraph (A) for a marketing under paragraphs (3), (4), and (5) for a mar- tion of loan association and cooperative pro- year shall be equal to the product obtained keting year, the Secretary shall distribute grams for tobacco producers, as approved by by multiplying— the amount of the excess pro rata to quota the Secretary; and (i) the number of pounds by which the indi- holders by increasing the amount payable to (6) any other costs incurred by the Depart- vidual marketing limitation established for each such holder under paragraphs (3) and ment of Agriculture associated with the pro- the permit is less than twice the base quota (5). duction of tobacco. level for the quota lessee or quota tenant; (8) DEATH OF QUOTA HOLDER, QUOTA LESSEE, (b) LIMITATIONS.—Amounts made available and OR QUOTA TENANT.—If a quota holder, quota under subsection (a) may not be used— (ii) $2 per pound. lessee or quota tenant that is entitled to (1) to provide direct benefits to quota hold- (5) PAYMENTS FOR LOST FLUE-CURED TO- payments under paragraph (4) or (5) dies and ers, quota lessees, or quota tenants; or BACCO QUOTA TO QUOTA LESSEES AND QUOTA is survived by a spouse or 1 or more descend- (2) in a manner that results in a decrease, TENANTS THAT HAVE RELINQUISHED PERMITS.— ants, the right to receive the payments shall or an increase relative to other crops, in the (A) IN GENERAL.—For each of fiscal years transfer to the surviving spouse or, if there amount of the crop insurance premiums as- 1999 through 2008, the Secretary shall make is no surviving spouse, to the surviving de- sessed to participating tobacco producers annual payments for lost flue-cured tobacco scendants in equal shares. under the Federal Crop Insurance Act (7 quota to each quota lessee and quota tenant (9) ACCELERATION OF PAYMENTS.— U.S.C. 1501 et seq.). that has relinquished an individual tobacco (A) IN GENERAL.—On the occurrence of any (c) DETERMINATIONS.—Not later than Sep- production permit under section 317A(b)(5) of of the events described in subparagraph (B), tember 30, 1998, and each fiscal year there- the Agricultural Adjustment Act of 1938. the Secretary shall make an accelerated after, the Secretary shall determine— June 11, 1998 CONGRESSIONAL RECORD — SENATE S6229 (1) the amount of costs described in sub- (D) activities that expand existing infra- warehousing of tobacco or tobacco products, section (a); and structure, facilities, and services to capital- or resided, in a county described in sub- (2) the amount that will be provided under ize on opportunities to diversify economies section (e)(2); and this section as reimbursement for the costs. in tobacco communities and that support the (B) is eligible for assistance under the to- SEC. 1023. TOBACCO COMMUNITY ECONOMIC DE- development of new industries or commer- bacco worker transition program established VELOPMENT GRANTS. cial ventures; under section 1031; or (a) AUTHORITY.—The Secretary shall make (E) activities by agricultural organizations (2) an individual who— grants to tobacco-growing States in accord- that provide assistance directly to partici- (A) during the 1998 marketing year, carried ance with this section to enable the States pating tobacco producers to assist in devel- out tobacco quota or relevant tobacco pro- to carry out economic development initia- oping other agricultural activities that sup- duction activities in a county described in tives in tobacco-growing communities. plement tobacco-producing activities; subsection (e)(2); (b) APPLICATION.—To be eligible to receive (F) initiatives designed to create or expand (B) is eligible for a farmer opportunity payments under this section, a State shall locally owned value-added processing and grant under subpart 9 of part A of title IV of prepare and submit to the Secretary an ap- marketing operations in tobacco commu- the Higher Education Act of 1965; and plication at such time, in such manner, and nities; (C) has successfully completed a course of containing such information as the Sec- (G) technical assistance activities by per- study at an institution of higher education. (g) MAINTENANCE OF EFFORT.— retary may require, including— sons to support farmer-owned enterprises, or (1) IN GENERAL.—Subject to paragraph (2), a (1) a description of the activities that the agriculture-based rural development enter- State shall provide an assurance to the Sec- State will carry out using amounts received prises, of the type described in section 252 or retary that the amount of funds expended by under the grant; 253 of the Trade Act of 1974 (19 U.S.C. 2342, 2343); and the State and all counties in the State de- (2) a designation of an appropriate State (H) initiatives designed to partially com- scribed in subsection (e)(2) for any activities agency to administer amounts received pensate tobacco warehouse owners for lost funded under this section for a fiscal year is under the grant; and revenues and assist the tobacco warehouse not less than 90 percent of the amount of (3) a description of the steps to be taken to owners in establishing successful business funds expended by the State and counties for ensure that the funds are distributed in ac- enterprises. the activities for the preceding fiscal year. cordance with subsection (e). (2) TOBACCO-GROWING COUNTIES.—Assistance (2) REDUCTION OF GRANT AMOUNT.—If a (c) AMOUNT OF GRANT.— may be provided by a State under this sec- State does not provide an assurance de- (1) IN GENERAL.—From the amounts avail- tion only to assist a county in the State that scribed in paragraph (1), the Secretary shall able to carry out this section for a fiscal has been determined by the Secretary to reduce the amount of the grant determined year, the Secretary shall allot to each State have in excess of $100,000 in income derived under subsection (c) by an amount equal to an amount that bears the same ratio to the from the production of tobacco during 1 or the amount by which the amount of funds amounts available as the total farm income more of the 1995 through 1997 marketing expended by the State and counties for the of the State derived from the production of years. For purposes of this section, the term activities is less than 90 percent of the tobacco during the 1995 through 1997 market- ‘‘tobacco-growing county’’ includes a politi- amount of funds expended by the State and ing years (as determined under paragraph cal subdivision surrounded within a State by counties for the activities for the preceding (2)) bears to the total farm income of all a county that has been determined by the fiscal year, as determined by the Secretary. States derived from the production of to- Secretary to have in excess of $100,000 in in- (3) FEDERAL FUNDS.—For purposes of this bacco during the 1995 through 1997 marketing come derived from the production of tobacco subsection, the amount of funds expended by years. during 1 or more of the 1995 through 1997 a State or county shall not include any (2) TOBACCO INCOME.—For the 1995 through marketing years. amounts made available by the Federal Gov- 1997 marketing years, the Secretary shall de- (3) DISTRIBUTION.— ernment. termine the amount of farm income derived (A) ECONOMIC DEVELOPMENT ACTIVITIES.— SEC. 1024. FLUE-CURED TOBACCO PRODUCTION from the production of tobacco in each State Not less than 20 percent of the amounts re- PERMITS. and in all States. ceived by a State under this section shall be The Agricultural Adjustment Act of 1938 is (d) PAYMENTS.— used to carry out— amended by inserting after section 317 (7 (1) IN GENERAL.—A State that has an appli- (i) economic development activities de- U.S.C. 1314c) the following: cation approved by the Secretary under sub- scribed in subparagraph (E) or (F) of para- ‘‘SEC. 317A. FLUE-CURED TOBACCO PRODUCTION section (b) shall be entitled to a payment graph (1); or PERMITS. under this section in an amount that is equal (ii) agriculture-based rural development ‘‘(a) DEFINITIONS.—In this section: to its allotment under subsection (c). activities described in paragraph (1)(G). ‘‘(1) INDIVIDUAL ACREAGE LIMITATION.—The (2) FORM OF PAYMENTS.—The Secretary (B) TECHNICAL ASSISTANCE ACTIVITIES.—Not term ‘individual acreage limitation’ means may make payments under this section to a less than 4 percent of the amounts received the number of acres of flue-cured tobacco State in installments, and in advance or by by a State under this section shall be used to that may be planted by the holder of a per- way of reimbursement, with necessary ad- carry out technical assistance activities de- mit during a marketing year, calculated— justments on account of overpayments or scribed in paragraph (1)(G). ‘‘(A) prior to— underpayments, as the Secretary may deter- (C) TOBACCO WAREHOUSE OWNER INITIA- ‘‘(i) any increase or decrease in the number mine. TIVES.—Not less than 6 percent of the due to undermarketings or overmarketings; (3) REALLOTMENTS.—Any portion of the al- amounts received by a State under this sec- and lotment of a State under subsection (c) that tion during each of fiscal years 1999 through ‘‘(ii) any reduction under subsection (i); the Secretary determines will not be used to 2008 shall be used to carry out initiatives de- and carry out this section in accordance with an scribed in paragraph (1)(H). ‘‘(B) in a manner that ensures that— approved State application required under (D) TOBACCO-GROWING COUNTIES.—To be eli- ‘‘(i) the total of all individual acreage limi- subsection (b), shall be reallotted by the Sec- gible to receive payments under this section, tations is equal to the national acreage al- retary to other States in proportion to the a State shall demonstrate to the Secretary lotment, less the reserve provided under sub- original allotments to the other States. that funding will be provided, during each 5- section (h); and (e) USE AND DISTRIBUTION OF FUNDS.— year period for which funding is provided ‘‘(ii) the individual acreage limitation for a (1) IN GENERAL.—Amounts received by a under this section, for activities in each marketing year bears the same ratio to the State under this section shall be used to county in the State that has been deter- individual acreage limitation for the pre- carry out economic development activities, mined under paragraph (2) to have in excess vious marketing year as the ratio that the including— of $100,000 in income derived from the pro- national acreage allotment for the market- (A) rural business enterprise activities de- duction of tobacco, in amounts that are at ing year bears to the national acreage allot- scribed in subsections (c) and (e) of section least equal to the product obtained by mul- ment for the previous marketing year, sub- 310B of the Consolidated Farm and Rural De- tiplying— ject to adjustments by the Secretary to ac- velopment Act (7 U.S.C. 1932); (i) the ratio that the tobacco production count for any reserve provided under sub- (B) down payment loan assistance pro- income in the county determined under para- section (h). grams that are similar to the program de- graph (2) bears to the total tobacco produc- ‘‘(2) INDIVIDUAL MARKETING LIMITATION.— scribed in section 310E of the Consolidated tion income for the State determined under The term ‘individual marketing limitation’ Farm and Rural Development Act (7 U.S.C. subsection (c); and means the number of pounds of flue-cured to- 1935); (ii) 50 percent of the total amounts re- bacco that may be marketed by the holder of (C) activities designed to help create pro- ceived by a State under this section during a permit during a marketing year, cal- ductive farm or off-farm employment in the 5-year period. culated— rural areas to provide a more viable eco- (f) PREFERENCES IN HIRING.—A State may ‘‘(A) prior to— nomic base and enhance opportunities for require recipients of funds under this section ‘‘(i) any increase or decrease in the number improved incomes, living standards, and con- to provide a preference in employment to— due to undermarketings or overmarketings; tributions by rural individuals to the eco- (1) an individual who— and nomic and social development of tobacco (A) during the 1998 calendar year, was em- ‘‘(ii) any reduction under subsection (i); communities; ployed in the manufacture, processing, or and S6230 CONGRESSIONAL RECORD — SENATE June 11, 1998 ‘‘(B) in a manner that ensures that— provided under section 317 shall no longer be limitation for the 1999 marketing year under ‘‘(i) the total of all individual marketing in effect for flue-cured tobacco. this section, the individual marketing limi- limitations is equal to the national market- ‘‘(2) ISSUANCE OF PERMITS TO QUOTA HOLD- tation for the previous year for an individual ing quota, less the reserve provided under ERS THAT WERE PRINCIPAL PRODUCERS.— described in this paragraph shall be cal- subsection (h); and ‘‘(A) IN GENERAL.—By January 15, 1999, culated by multiplying— ‘‘(ii) the individual marketing limitation each individual quota holder under section ‘‘(i) the farm marketing quota that was al- for a marketing year is obtained by mul- 317 that was a principal producer of flue- lotted to a farm owned by a quota holder for tiplying the individual acreage limitation by cured tobacco during the 1998 marketing whom the quota lessee or quota holder was year, as determined by the Secretary, shall the permit yield, prior to any adjustment for the principal producer of flue-cured tobacco undermarketings or overmarketings. be issued an individual tobacco production during the 1997 marketing year, by ‘‘(3) INDIVIDUAL TOBACCO PRODUCTION PER- permit under this section. ‘‘(ii) the ratio that— MIT.—The term ‘individual tobacco produc- ‘‘(B) NOTIFICATION.—The Secretary shall ‘‘(I) the sum of all flue-cured tobacco farm tion permit’ means a permit issued by the notify the holder of each permit of the indi- Secretary to a person authorizing the pro- vidual acreage limitation and the individual marketing quotas for the 1997 marketing duction of flue-cured tobacco for any mar- marketing limitation applicable to the hold- year prior to adjusting for undermarketing keting year during which this section is ef- er for each marketing year. and overmarketing; bears to fective. ‘‘(C) INDIVIDUAL ACREAGE LIMITATION FOR ‘‘(II) the sum of all flue-cured tobacco farm ‘‘(4) NATIONAL ACREAGE ALLOTMENT.—The 1999 MARKETING YEAR.—In establishing the in- marketing quotas for the 1998 marketing term ‘national acreage allotment’ means the dividual acreage limitation for the 1999 mar- year, after adjusting for undermarketing and quantity determined by dividing— keting year under this section, the farm overmarketing. ‘‘(A) the national marketing quota; by acreage allotment that was allotted to a ‘‘(D) SPECIAL RULE FOR TENANT OF LEASED ‘‘(B) the national average yield goal. farm owned by the quota holder for the 1997 FLUE-CURED TOBACCO.—If the farm marketing ‘‘(5) NATIONAL AVERAGE YIELD GOAL.—The marketing year shall be considered the indi- quota or farm acreage allotment of a quota term ‘national average yield goal’ means the vidual acreage limitation for the previous holder was produced pursuant to an agree- marketing year. national average yield for flue-cured tobacco ment under which a quota lessee rented land ‘‘(D) INDIVIDUAL MARKETING LIMITATION FOR during the 5 marketing years immediately from a quota holder and a quota tenant was preceding the marketing year for which the 1999 MARKETING YEAR.—In establishing the in- dividual marketing limitation for the 1999 the primary producer, as determined by the determination is being made. Secretary, of flue-cured tobacco pursuant to ‘‘(6) NATIONAL MARKETING QUOTA.—For the marketing year under this section, the farm marketing quota that was allotted to a farm the farm marketing quota or farm acreage 1999 and each subsequent crop of flue-cured allotment, the farm marketing quota or tobacco, the term ‘national marketing owned by the quota holder for the 1997 mar- farm acreage allotment shall be divided pro- quota’ for a marketing year means the quan- keting year shall be considered the individ- portionately between the quota lessee and tity of flue-cured tobacco, as determined by ual marketing limitation for the previous quota tenant for purposes of issuing individ- the Secretary, that is not more than 103 per- marketing year. cent nor less than 97 percent of the total of— ‘‘(3) QUOTA HOLDERS THAT WERE NOT PRIN- ual tobacco production permits under this CIPAL PRODUCERS.— ‘‘(A) the aggregate of the quantities of paragraph. ‘‘(A) IN GENERAL.—Except as provided in flue-cured tobacco that domestic manufac- ‘‘(5) OPTION OF QUOTA LESSEE OR QUOTA TEN- subparagraph (B), on approval through a ref- turers of cigarettes estimate that the manu- ANT TO RELINQUISH PERMIT.— erendum under subsection (c)— facturers intend to purchase on the United ‘‘(A) IN GENERAL.—Each quota lessee or ‘‘(i) each person that was a quota holder States auction markets or from producers quota tenant that is issued an individual to- under section 317 but that was not a prin- during the marketing year, as compiled and bacco production permit under paragraph (4) cipal producer of flue-cured tobacco during determined under section 320A; shall be given the option of relinquishing the the 1997 marketing year, as determined by ‘‘(B) the average annual quantity of flue- permit in exchange for payments made under the Secretary, shall not be eligible to own a cured tobacco exported from the United permit; and section 1021(e)(5) of the LEAF Act. States during the 3 marketing years imme- ‘‘(ii) the Secretary shall not issue any per- ‘‘(B) NOTIFICATION.—A quota lessee or diately preceding the marketing year for mit during the 25-year period beginning on quota tenant that is issued an individual to- which the determination is being made; and the date of enactment of this Act to any per- bacco production permit shall give notifica- ‘‘(C) the quantity, if any, of flue-cured to- son that was a quota holder and was not the tion of the intention to exercise the option bacco that the Secretary, in the discretion of principal producer of flue-cured tobacco dur- at such time and in such manner as the Sec- the Secretary, determines is necessary to in- ing the 1997 marketing year. retary may require, but not later than 45 crease or decrease the inventory of the pro- ‘‘(B) MEDICAL HARDSHIPS AND CROP DISAS- days after the permit is issued. ducer-owned cooperative marketing associa- TERS.—Subparagraph (A) shall not apply to a ‘‘(C) REALLOCATION OF PERMIT.—The Sec- tion that has entered into a loan agreement person that would have been the principal retary shall add the authority to produce with the Commodity Credit Corporation to producer of flue-cured tobacco during the flue-cured tobacco under the individual to- make price support available to producers of 1997 marketing year but for a medical hard- bacco production permit relinquished under flue-cured tobacco to establish or maintain ship or crop disaster that occurred during the inventory at the reserve stock level for this paragraph to the county production pool the 1997 marketing year. established under paragraph (8) for realloca- flue-cured tobacco. ‘‘(C) ADMINISTRATION.—The Secretary shall tion by the appropriate county committee. ‘‘(7) PERMIT YIELD.—The term ‘permit issue regulations— ‘‘(6) ACTIVE PRODUCER REQUIREMENT.— yield’ means the yield of tobacco per acre for ‘‘(i) defining the term ‘person’ for the pur- an individual tobacco production permit pose of this paragraph; and ‘‘(A) REQUIREMENT FOR SHARING RISK.—No holder that is— ‘‘(ii) prescribing such rules as the Sec- individual tobacco production permit shall ‘‘(A) based on a preliminary permit yield retary determines are necessary to ensure a be issued to, or maintained by, a person that that is equal to the average yield during the fair and reasonable application of the prohi- does not fully share in the risk of producing 5 marketing years immediately preceding bition established under this paragraph. a crop of flue-cured tobacco. the marketing year for which the determina- ‘‘(4) ISSUANCE OF PERMITS TO PRINCIPAL ‘‘(B) CRITERIA FOR SHARING RISK.—For pur- tion is made in the county where the holder PRODUCERS OF FLUE-CURED TOBACCO.— poses of this paragraph, a person shall be of the permit is authorized to plant flue- ‘‘(A) IN GENERAL.—By January 15, 1999, considered to have fully shared in the risk of cured tobacco, as determined by the Sec- each individual quota lessee or quota tenant production of a crop if— retary, on the basis of actual yields of farms (as defined in section 1002 of the LEAF Act) ‘‘(i) the investment of the person in the in the county; and that was the principal producer of flue-cured production of the crop is not less than 100 ‘‘(B) adjusted by a weighted national yield tobacco during the 1997 marketing year, as percent of the costs of production associated factor calculated by— determined by the Secretary, shall be issued with the crop; ‘‘(i) multiplying each preliminary permit an individual tobacco production permit ‘‘(ii) the amount of the person’s return on yield by the individual acreage limitation, under this section. the investment is dependent solely on the prior to adjustments for overmarketings, ‘‘(B) INDIVIDUAL ACREAGE LIMITATIONS.—In undermarketings, or reductions required sale price of the crop; and establishing the individual acreage limita- ‘‘(iii) the person may not receive any of the under subsection (i); and tion for the 1999 marketing year under this return before the sale of the crop. ‘‘(ii) dividing the sum of the products section, the farm acreage allotment that was ‘‘(C) PERSONS NOT SHARING RISK.— under clause (i) for all flue-cured individual allotted to a farm owned by a quota holder ‘‘(i) FORFEITURE.—Any person that fails to tobacco production permit holders by the na- for whom the quota lessee or quota tenant tional acreage allotment. was the principal producer of flue-cured to- fully share in the risks of production under ‘‘(b) INITIAL ISSUANCE OF PERMITS.— bacco during the 1997 marketing year shall this paragraph shall forfeit an individual to- ‘‘(1) TERMINATION OF FLUE-CURED MARKET- be considered the individual acreage limita- bacco production permit if, after notice and ING QUOTAS.—On the date of enactment of the tion for the previous marketing year. opportunity for a hearing, the appropriate National Tobacco Policy and Youth Smoking ‘‘(C) INDIVIDUAL MARKETING LIMITATIONS.— county committee determines that the con- Reduction Act, farm marketing quotas as In establishing the individual marketing ditions for forfeiture exist. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6231

‘‘(ii) REALLOCATION.—The Secretary shall flue-cured tobacco of the 1997 crop to deter- transfer, of an individual tobacco production add the authority to produce flue-cured to- mine whether the producers approve or op- permit issued under this section. bacco under the individual tobacco produc- pose the continuation of individual tobacco ‘‘(2) TRANSFER TO DESCENDANTS.— tion permit forfeited under this subpara- production permits on an acreage-poundage ‘‘(A) DEATH.—In the case of the death of a graph to the county production pool estab- basis as provided in this section for the 2002 person to whom an individual tobacco pro- lished under paragraph (8) for reallocation by through 2004 marketing years. duction permit has been issued under this the appropriate county committee. ‘‘(3) APPROVAL OF PERMITS.—If the Sec- section, the permit shall transfer to the sur- ‘‘(D) NOTICE.—Notice of any determination retary determines that more than 662⁄3 per- viving spouse of the person or, if there is no made by a county committee under subpara- cent of the producers voting in the special surviving spouse, to surviving direct de- graph (C) shall be mailed, as soon as prac- referendum approve the establishment of in- scendants of the person. ticable, to the person involved. dividual tobacco production permits on an ‘‘(B) TEMPORARY INABILITY TO FARM.—In ‘‘(E) REVIEW.—If the person is dissatisfied acreage-poundage basis— the case of the death of a person to whom an with the determination, the person may re- ‘‘(A) individual tobacco production permits individual tobacco production permit has quest, not later than 15 days after notice of on an acreage-poundage basis as provided in been issued under this section and whose de- the determination is received, a review of this section shall be in effect for the 2002 scendants are temporarily unable to produce the determination by a local review commit- through 2004 marketing years; and a crop of tobacco, the Secretary may hold tee under the procedures established under ‘‘(B) marketing quotas on an acreage- the license in the name of the descendants section 363 for farm marketing quotas. poundage basis shall cease to be in effect for for a period of not more than 18 months. ‘‘(7) COUNTY OF ORIGIN REQUIREMENT.—For the 2002 through 2004 marketing years. ‘‘(3) VOLUNTARY TRANSFERS.—A person that the 1999 and each subsequent crop of flue- ‘‘(4) DISAPPROVAL OF PERMITS.—If individ- is eligible to obtain an individual tobacco cured tobacco, all tobacco produced pursuant ual tobacco production permits on an acre- production permit under this section may at to an individual tobacco production permit age-poundage basis are not approved by more any time transfer all or part of the permit to shall be produced in the same county in than 662⁄3 percent of the producers voting in the person’s spouse or direct descendants which was produced the tobacco produced the referendum, no marketing quotas on an that are actively engaged in the production during the 1997 marketing year pursuant to acreage-poundage basis shall continue in ef- of tobacco. the farm marketing quota or farm acreage fect that were proclaimed under section 317 ‘‘(h) RESERVE.— allotment on which the individual tobacco prior to the referendum. ‘‘(1) IN GENERAL.—For each marketing year for which individual tobacco production per- production permit is based. ‘‘(5) APPLICABLE MARKETING YEARS.—If in- mits are in effect under this section, the Sec- ‘‘(8) COUNTY PRODUCTION POOL.— dividual tobacco production permits have retary may establish a reserve from the na- ‘‘(A) IN GENERAL.—The authority to been made effective for flue-cured tobacco on tional marketing quota in a quantity equal produce flue-cured tobacco under an individ- an acreage-poundage basis pursuant to this to not more than 1 percent of the national ual tobacco production permit that is for- subsection, the Secretary shall, not later marketing quota to be available for— feited, relinquished, or surrendered within a than December 15 of any future marketing ‘‘(A) making corrections of errors in indi- county may be reallocated by the appro- year, announce a national marketing quota vidual acreage limitations and individual priate county committee to tobacco produc- for that type of tobacco for the next 3 suc- ers located in the same county that apply to marketing limitations; ceeding marketing years if the marketing the committee to produce flue-cured tobacco ‘‘(B) adjusting inequities; and year is the last year of 3 consecutive years under the authority. ‘‘(C) establishing individual tobacco pro- for which individual tobacco production per- ‘‘(B) PRIORITY.—In reallocating individual duction permits for new tobacco producers mits previously proclaimed will be in effect. tobacco production permits under this para- (except that not less than two-thirds of the graph, a county committee shall provide a ‘‘(d) ANNUAL ANNOUNCEMENT OF NATIONAL reserve shall be for establishing such permits priority to— MARKETING QUOTA.—The Secretary shall de- for new tobacco producers). termine and announce the national market- ‘‘(i) an active tobacco producer that con- ‘‘(2) ELIGIBLE PERSONS.—To be eligible for a trols the authority to produce a quantity of ing quota, national acreage allotment, and new individual tobacco production permit, a flue-cured tobacco under an individual to- national average yield goal for the second producer must not have been the principal bacco production permit that is equal to or and third marketing years of any 3-year pe- producer of tobacco during the immediately less than the average number of pounds of riod for which individual tobacco production preceding 5 years. permits are in effect on or before the Decem- flue-cured tobacco that was produced by the ‘‘(3) APPORTIONMENT FOR NEW PRODUCERS.— producer during each of the 1995 through 1997 ber 15 immediately preceding the beginning The part of the reserve held for apportion- marketing years, as determined by the Sec- of the marketing year to which the quota, ment to new individual tobacco producers retary; and allotment, and goal apply. shall be allotted on the basis of— ‘‘(ii) a new tobacco producer. ‘‘(e) ANNUAL ANNOUNCEMENT OF INDIVIDUAL ‘‘(A) land, labor, and equipment available ‘‘(C) CRITERIA.—Individual tobacco produc- TOBACCO PRODUCTION PERMITS.—If a national for the production of tobacco; tion permits shall be reallocated by the ap- marketing quota, national acreage allot- ‘‘(B) crop rotation practices; propriate county committee under this para- ment, and national average yield goal are de- ‘‘(C) soil and other physical factors affect- graph in a fair and equitable manner after termined and announced, the Secretary shall ing the production of tobacco; and taking into consideration— provide for the determination of individual ‘‘(D) the past tobacco-producing experience ‘‘(i) the experience of the producer; tobacco production permits, individual acre- of the producer. ‘‘(ii) the availability of land, labor, and age limitations, and individual marketing ‘‘(4) PERMIT YIELD.—The permit yield for equipment for the production of tobacco; limitations under this section for the crop any producer for which a new individual to- ‘‘(iii) crop rotation practices; and and marketing year covered by the deter- bacco production permit is established shall ‘‘(iv) the soil and other physical factors af- minations. be determined on the basis of available pro- fecting the production of tobacco. ‘‘(f) ASSIGNMENT OF TOBACCO PRODUCTION ductivity data for the land involved and ‘‘(D) MEDICAL HARDSHIPS AND CROP DISAS- PERMITS.— yields for similar farms in the same county. TERS.—Notwithstanding any other provision ‘‘(1) LIMITATION TO SAME COUNTY.—Each in- ‘‘(i) PENALTIES.— of this Act, the Secretary may issue an indi- dividual tobacco production permit holder ‘‘(1) PRODUCTION ON OTHER FARMS.—If any vidual tobacco production permit under this shall assign the individual acreage limita- quantity of tobacco is marketed as having paragraph to a producer that is otherwise in- tion and individual marketing limitation to been produced under an individual acreage eligible for the permit due to a medical hard- 1 or more farms located within the county of limitation or individual marketing limita- ship or crop disaster that occurred during origin of the individual tobacco production tion assigned to a farm but was produced on the 1997 marketing year. permit. a different farm, the individual acreage limi- ‘‘(c) REFERENDUM.— ‘‘(2) FILING WITH COUNTY COMMITTEE.—The tation or individual marketing limitation ‘‘(1) ANNOUNCEMENT OF QUOTA AND ALLOT- assignment of an individual acreage limita- for the following marketing year shall be MENT.—Not later than December 15, 1998, the tion and individual marketing limitation forfeited. Secretary pursuant to subsection (b) shall shall not be effective until evidence of the ‘‘(2) FALSE REPORT.—If a person to which determine and announce— assignment, in such form as required by the an individual tobacco production permit is ‘‘(A) the quantity of the national market- Secretary, is filed with and determined by issued files, or aids or acquiesces in the fil- ing quota for flue-cured tobacco for the 1999 the county committee for the county in ing of, a false report with respect to the as- marketing year; and which the farm involved is located. signment of an individual acreage limitation ‘‘(B) the national acreage allotment and ‘‘(3) LIMITATION ON TILLABLE CROPLAND.— or individual marketing limitation for a national average yield goal for the 1999 crop The total acreage assigned to any farm quantity of tobacco, the individual acreage of flue-cured tobacco. under this subsection shall not exceed the limitation or individual marketing limita- ‘‘(2) SPECIAL REFERENDUM.—Not later than acreage of cropland on the farm. tion for the following marketing year shall 30 days after the announcement of the quan- ‘‘(g) PROHIBITION ON SALE OR LEASING OF be forfeited. tity of the national marketing quota in 2001, INDIVIDUAL TOBACCO PRODUCTION PERMITS.— ‘‘(j) MARKETING PENALTIES.— the Secretary shall conduct a special ref- ‘‘(1) IN GENERAL.—Except as provided in ‘‘(1) IN GENERAL.—When individual tobacco erendum of the tobacco production permit paragraphs (2) and (3), the Secretary shall production permits under this section are in holders that were the principal producers of not permit the sale and transfer, or lease and effect, provisions with respect to penalties S6232 CONGRESSIONAL RECORD — SENATE June 11, 1998 for the marketing of excess tobacco and the (A) by striking ‘‘ten’’ and inserting ‘‘30’’; of the criteria described in paragraph (1) in other provisions contained in section 314 and making preliminary findings under sub- shall apply in the same manner and to the (B) by inserting ‘‘during any crop year’’ section (b) and determinations under sub- same extent as they would apply under sec- after ‘‘transferred to any farm’’. section (c). tion 317(g) if farm marketing quotas were in (2) LOSS OF ALLOTMENT OR QUOTA THROUGH (b) PRELIMINARY FINDINGS AND BASIC AS- effect. UNDERPLANTING.—Section 318 of the Agricul- SISTANCE.— ‘‘(2) PRODUCTION ON OTHER FARMS.—If a pro- tural Adjustment Act of 1938 (7 U.S.C. 1314d) (1) FILING OF PETITIONS.—A petition for cer- ducer falsely identifies tobacco as having is amended by adding at the end the follow- tification of eligibility to apply for adjust- been produced on or marketed from a farm ing: ment assistance under this section may be to which an individual acreage limitation or ‘‘(k) LOSS OF ALLOTMENT OR QUOTA filed by a group of workers (including work- individual marketing limitation has been as- THROUGH UNDERPLANTING.—Effective for the ers in any firm or subdivision of a firm in- signed, future individual acreage limitations 1999 and subsequent marketing years, no volved in the manufacture, processing, or and individual marketing limitations shall acreage allotment or acreage-poundage warehousing of tobacco or tobacco products) be forfeited.’’. quota, other than a new marketing quota, or by their certified or recognized union or SEC. 1025. MODIFICATIONS IN FEDERAL TO- shall be established for a farm on which no other duly authorized representative with BACCO PROGRAMS. fire-cured or dark air-cured tobacco was the Governor of the State in which the work- (a) PROGRAM REFERENDA.—Section 312(c) of planted or considered planted during at least ers’ firm or subdivision thereof is located. the Agricultural Adjustment Act of 1938 (7 2 of the 3 crop years immediately preceding (2) FINDINGS AND ASSISTANCE.—On receipt U.S.C. 1312(c)) is amended— the crop year for which the acreage allot- of a petition under paragraph (1), the Gov- (1) by striking ‘‘(c) Within thirty’’ and in- ment or acreage-poundage quota would oth- ernor shall— serting the following: erwise be established.’’. (A) notify the Secretary that the Governor ‘‘(c) REFERENDA ON QUOTAS.— (f) EXPANSION OF TYPES OF TOBACCO SUB- has received the petition; ‘‘(1) IN GENERAL.—Not later than 30’’; and JECT TO NO NET COST ASSESSMENT.— (B) within 10 days after receiving the peti- (2) by adding at the end the following: (1) NO NET COST TOBACCO FUND.—Section tion— ‘‘(2) REFERENDA ON PROGRAM CHANGES.— 106A(d)(1)(A) of the Agricultural Act of 1949 (i) make a preliminary finding as to wheth- ‘‘(A) IN GENERAL.—In the case of any type (7 U.S.C. 1445–1(d)(1)(A)) is amended— er the petition meets the criteria described of tobacco for which marketing quotas are in (A) in clause (ii), by inserting after ‘‘Bur- in subsection (a)(1); and effect, on the receipt of a petition from more ley quota tobacco’’ the following: ‘‘and fire- (ii) transmit the petition, together with a than 5 percent of the producers of that type cured and dark air-cured quota tobacco’’; statement of the finding under clause (i) and of tobacco in a State, the Secretary shall and reasons for the finding, to the Secretary for conduct a statewide referendum on any pro- (B) in clause (iii)— action under subsection (c); and posal related to the lease and transfer of to- (i) in the matter preceding subclause (I), by (C) if the preliminary finding under sub- bacco quota within a State requested by the striking ‘‘Flue-cured or Burley tobacco’’ and paragraph (B)(i) is affirmative, ensure that petition that is authorized under this part. inserting ‘‘each kind of tobacco for which rapid response and basic readjustment serv- ‘‘(B) APPROVAL OF PROPOSALS.—If a major- price support is made available under this ices authorized under other Federal laws are ity of producers of the type of tobacco in the Act, and each kind of like tobacco,’’; and made available to the workers. State approve a proposal in a referendum (c) REVIEW OF PETITIONS BY SECRETARY; (ii) by striking subclause (II) and inserting conducted under subparagraph (A), the Sec- CERTIFICATIONS.— the following: retary shall implement the proposal in a (1) IN GENERAL.—The Secretary, within 30 ‘‘(II) the sum of the amount of the per manner that applies to all producers and days after receiving a petition under sub- pound producer contribution and purchaser quota holders of that type of tobacco in the section (b)(2)(B)(ii), shall determine whether assessment (if any) for the kind of tobacco State.’’. the petition meets the criteria described in payable under clauses (i) and (ii); and’’. (b) PURCHASE REQUIREMENTS.—Section 320B subsection (a)(1). On a determination that (2) NO NET COST TOBACCO ACCOUNT.—Section of the Agricultural Adjustment Act of 1938 (7 the petition meets the criteria, the Sec- 106B(d)(1) of the Agricultural Act of 1949 (7 U.S.C. 1314h) is amended— retary shall issue to workers covered by the U.S.C. 1445–2(d)(1)) is amended— (1) in subsection (c)— petition a certification of eligibility to apply (A) in subparagraph (B), by inserting after (A) by striking ‘‘(c) The amount’’ and in- for the assistance described in subsection (d). ‘‘Burley quota tobacco’’ the following: ‘‘and serting ‘‘(c) AMOUNT OF PENALTY.—For the (2) DENIAL OF CERTIFICATION.—On the de- fire-cured and dark air-cured tobacco’’; and 1998 and subsequent marketing years, the nial of a certification with respect to a peti- (B) in subparagraph (C), by striking ‘‘Flue- amount’’; and tion under paragraph (1), the Secretary shall cured and Burley tobacco’’ and inserting (B) by striking paragraph (1) and inserting review the petition in accordance with the ‘‘each kind of tobacco for which price sup- the following: requirements of other applicable assistance port is made available under this Act, and ‘‘(1) 105 percent of the average market programs to determine if the workers may be each kind of like tobacco,’’. price for the type of tobacco involved during certified under the other programs. the preceding marketing year; and’’. Subtitle C—Farmer and Worker Transition (d) COMPREHENSIVE ASSISTANCE.— (c) ELIMINATION OF TOBACCO MARKETING Assistance (1) IN GENERAL.—Workers covered by a cer- ASSESSMENT.— SEC. 1031. TOBACCO WORKER TRANSITION PRO- tification issued by the Secretary under sub- (1) IN GENERAL.—Section 106 of the Agricul- GRAM. section (c)(1) shall be provided with benefits tural Act of 1949 (7 U.S.C. 1445) is amended by (a) GROUP ELIGIBILITY REQUIREMENTS.— and services described in paragraph (2) in the striking subsection (g). (1) CRITERIA.—A group of workers (includ- same manner and to the same extent as (2) CONFORMING AMENDMENT.—Section ing workers in any firm or subdivision of a workers covered under a certification under 422(c) of the Uruguay Round Agreements Act firm involved in the manufacture, process- subchapter A of title II of the Trade Act of (Public Law 103–465; 7 U.S.C. 1445 note) is ing, or warehousing of tobacco or tobacco 1974 (19 U.S.C. 2271 et seq.), except that the amended by striking ‘‘section 106(g), 106A, or products) shall be certified as eligible to total amount of payments under this section 106B of the Agricultural Act of 1949 (7 U.S.C. apply for adjustment assistance under this for any fiscal year shall not exceed 1445(g), 1445–1, or 1445–2)’’ and inserting ‘‘sec- section pursuant to a petition filed under $25,000,000. tion 106A or 106B of the Agricultural Act of subsection (b) if the Secretary of Labor de- (2) BENEFITS AND SERVICES.—The benefits 1949 (7 U.S.C. 1445–1, 1445–2)’’. termines that a significant number or pro- and services described in this paragraph are (d) ADJUSTMENT FOR LAND RENTAL COSTS.— portion of the workers in the workers’ firm the following: Section 106 of the Agricultural Act of 1949 (7 or an appropriate subdivision of the firm (A) Employment services of the type de- U.S.C. 1445) is amended by adding at the end have become totally or partially separated, scribed in section 235 of the Trade Act of 1974 the following: or are threatened to become totally or par- (19 U.S.C. 2295). ‘‘(h) ADJUSTMENT FOR LAND RENTAL tially separated, and— (B) Training described in section 236 of the COSTS.—For each of the 1999 and 2000 mar- keting years for flue-cured tobacco, after (A) the sales or production, or both, of the Trade Act of 1974 (19 U.S.C. 2296), except that consultation with producers, State farm or- firm or subdivision have decreased abso- notwithstanding the provisions of section ganizations and cooperative associations, the lutely; and 236(a)(2)(A) of that Act, the total amount of Secretary shall make an adjustment in the (B) the implementation of the national to- payments for training under this section for price support level for flue-cured tobacco bacco settlement contributed importantly to any fiscal year shall not exceed $12,500,000. equal to the annual change in the average the workers’ separation or threat of separa- (C) Tobacco worker readjustment allow- cost per pound to flue-cured producers, as de- tion and to the decline in the sales or pro- ances, which shall be provided in the same termined by the Secretary, under agree- duction of the firm or subdivision. manner as trade readjustment allowances ments through which producers rent land to (2) DEFINITION OF CONTRIBUTED IMPOR- are provided under part I of subchapter B of produce flue-cured tobacco.’’. TANTLY.—In paragraph (1)(B), the term ‘‘con- chapter 2 of title II of the Trade Act of 1974 (e) FIRE-CURED AND DARK AIR-CURED TO- tributed importantly’’ means a cause that is (19 U.S.C. 2291 et seq.), except that— BACCO PROGRAMS.— important but not necessarily more impor- (i) the provisions of sections 231(a)(5)(C) (1) LIMITATION ON TRANSFERS.—Section tant than any other cause. and 231(c) of that Act (19 U.S.C. 2291(a)(5)(C), 318(g) of the Agricultural Adjustment Act of (3) REGULATIONS.—The Secretary shall 2291(c)), authorizing the payment of trade re- 1938 (7 U.S.C. 13l4d(g)) is amended— issue regulations relating to the application adjustment allowances on a finding that it is June 11, 1998 CONGRESSIONAL RECORD — SENATE S6233 not feasible or appropriate to approve a section (b). Not less than 85 percent of the ‘‘(B) exclude from eligibility programs of training program for a worker, shall not be sums shall be advanced to eligible institu- study abroad that are approved for credit by applicable to payment of allowances under tions prior to the start of each payment pe- the home institution at which the student is this section; and riod and shall be based on an amount re- enrolled. (ii) notwithstanding the provisions of sec- quested by the institution as needed to pay ‘‘(3) PROHIBITION.—No student is entitled to tion 233(b) of that Act (19 U.S.C. 2293(b)), in eligible students, except that this sentence receive farmer opportunity grant payments order for a worker to qualify for tobacco re- shall not be construed to limit the authority concurrently from more than 1 institution or adjustment allowances under this section, of the Secretary to place an institution on a from the Secretary and an institution. the worker shall be enrolled in a training reimbursement system of payment. ‘‘(d) APPLICATIONS FOR GRANTS.— program approved by the Secretary of the ‘‘(2) CONSTRUCTION.—Nothing in this sec- ‘‘(1) IN GENERAL.—The Secretary shall from type described in section 236(a) of that Act tion shall be construed to prohibit the Sec- time to time set dates by which students (19 U.S.C. 2296(a)) by the later of— retary from paying directly to students, in shall file applications for grants under this (I) the last day of the 16th week of the advance of the beginning of the academic subpart. The filing of applications under this worker’s initial unemployment compensa- term, an amount for which the students are subpart shall be coordinated with the filing tion benefit period; or eligible, in cases where the eligible institu- of applications under section 401(c). (II) the last day of the 6th week after the tion elects not to participate in the disburse- ‘‘(2) INFORMATION AND ASSURANCES.—Each week in which the Secretary issues a certifi- ment system required by paragraph (1). student desiring a grant for any year shall cation covering the worker. ‘‘(3) DESIGNATION.—Grants made under this file with the Secretary an application for the subpart shall be known as ‘farmer oppor- In cases of extenuating circumstances relat- grant containing such information and as- tunity grants’. ing to enrollment of a worker in a training surances as the Secretary may deem nec- ‘‘(b) AMOUNT OF GRANTS.— program under this section, the Secretary essary to enable the Secretary to carry out ‘‘(1) AMOUNTS.— may extend the time for enrollment for a pe- the Secretary’s functions and responsibil- ‘‘(A) IN GENERAL.—The amount of the grant riod of not to exceed 30 days. ities under this subpart. for a student eligible under this subpart ‘‘(e) DISTRIBUTION OF GRANTS TO STU- (D) Job search allowances of the type de- shall be— DENTS.—Payments under this section shall scribed in section 237 of the Trade Act of 1974 ‘‘(i) $1,700 for each of the academic years be made in accordance with regulations pro- (19 U.S.C. 2297). 1999–2000 through 2003–2004; mulgated by the Secretary for such purpose, (E) Relocation allowances of the type de- ‘‘(ii) $2,000 for each of the academic years in such manner as will best accomplish the scribed in section 238 of the Trade Act of 1974 2004–2005 through 2008–2009; purpose of this section. Any disbursement al- (19 U.S.C. 2298). ‘‘(iii) $2,300 for each of the academic years lowed to be made by crediting the student’s (e) INELIGIBILITY OF INDIVIDUALS RECEIVING 2009–2010 through 2013–2014; account shall be limited to tuition and fees PAYMENTS FOR LOST TOBACCO QUOTA.—No ‘‘(iv) $2,600 for each of the academic years and, in the case of institutionally owned benefits or services may be provided under 2014–2015 through 2018–2019; and housing, room and board. The student may this section to any individual who has re- ‘‘(v) $2,900 for each of the academic years elect to have the institution provide other ceived payments for lost tobacco quota 2019–2020 through 2023–2024. such goods and services by crediting the stu- under section 1021. ‘‘(B) PART-TIME RULE.—In any case where a dent’s account. (f) FUNDING.—Of the amounts appropriated student attends an institution of higher edu- ‘‘(f) INSUFFICIENT FUNDING.—If, for any fis- to carry out this title, the Secretary may cation on less than a full-time basis (includ- cal year, the funds made available to carry use not to exceed $25,000,000 for each of fiscal ing a student who attends an institution of out this subpart are insufficient to satisfy years 1999 through 2008 to provide assistance higher education on less than a half-time fully all grants for students determined to be under this section. basis) during any academic year, the amount eligible under section 420F, the amount of (g) EFFECTIVE DATE.—This section shall of the grant for which that student is eligi- the grant provided under subsection (b) shall take effect on the date that is the later of— ble shall be reduced in proportion to the de- be reduced on a pro rata basis among all eli- (1) October l, 1998; or gree to which that student is not so attend- gible students. (2) the date of enactment of this Act. ing on a full-time basis, in accordance with ‘‘(g) TREATMENT OF INSTITUTIONS AND STU- (h) TERMINATION DATE.—No assistance, a schedule of reductions established by the DENTS UNDER OTHER LAWS.—Any institution vouchers, allowances, or other payments Secretary for the purposes of this subpara- of higher education that enters into an may be provided under this section after the graph, computed in accordance with this agreement with the Secretary to disburse to date that is the earlier of— subpart. The schedule of reductions shall be students attending that institution the (1) the date that is 10 years after the effec- established by regulation and published in amounts those students are eligible to re- tive date of this section under subsection (g); the Federal Register. ceive under this subpart shall not be deemed, or ‘‘(2) MAXIMUM.—No grant under this sub- by virtue of the agreement, to be a contrac- (2) the date on which legislation establish- part shall exceed the cost of attendance (as tor maintaining a system of records to ac- ing a program providing dislocated workers described in section 472) at the institution at complish a function of the Secretary. Recipi- with comprehensive assistance substantially which that student is in attendance. If, with ents of farmer opportunity grants shall not similar to the assistance provided by this respect to any student, it is determined that be considered to be individual grantees for section becomes effective. the amount of a grant exceeds the cost of at- purposes of the Drug-Free Workplace Act of SEC. 1032. FARMER OPPORTUNITY GRANTS. tendance for that year, the amount of the 1988 (41 U.S.C. 701 et seq.). Part A of title IV of the Higher Education grant shall be reduced to an amount equal to ‘‘SEC. 420F. STUDENT ELIGIBILITY. Act of 1965 (20 U.S.C. 1070 et seq.) is amended the cost of attendance at the institution. ‘‘(a) IN GENERAL.—In order to receive any by adding at the end the following: ‘‘(3) PROHIBITION.—No grant shall be award- grant under this subpart, a student shall— ed under this subpart to any individual who ‘‘(1) be a member of a tobacco farm family ‘‘Subpart 9—Farmer Opportunity Grants is incarcerated in any Federal, State, or in accordance with subsection (b); ‘‘SEC. 420D. STATEMENT OF PURPOSE. local penal institution. ‘‘(2) be enrolled or accepted for enrollment ‘‘It is the purpose of this subpart to assist ‘‘(c) PERIOD OF ELIGIBILITY FOR GRANTS.— in a degree, certificate, or other program (in- in making available the benefits of post- ‘‘(1) IN GENERAL.—The period during which cluding a program of study abroad approved secondary education to eligible students (de- a student may receive grants shall be the pe- for credit by the eligible institution at which termined in accordance with section 420F) in riod required for the completion of the first the student is enrolled) leading to a recog- institutions of higher education by providing undergraduate baccalaureate course of study nized educational credential at an institu- farmer opportunity grants to all eligible stu- being pursued by that student at the institu- tion of higher education that is an eligible dents. tion at which the student is in attendance, institution in accordance with section 487, ‘‘SEC. 420E. PROGRAM AUTHORITY; AMOUNT AND except that any period during which the stu- and not be enrolled in an elementary or sec- DETERMINATIONS; APPLICATIONS. dent is enrolled in a noncredit or remedial ondary school; ‘‘(a) PROGRAM AUTHORITY AND METHOD OF course of study as described in paragraph (2) ‘‘(3) if the student is presently enrolled at DISTRIBUTION.— shall not be counted for the purpose of this an institution of higher education, be main- ‘‘(1) PROGRAM AUTHORITY.—From amounts paragraph. taining satisfactory progress in the course of made available under section 1011(d)(5) of the ‘‘(2) CONSTRUCTION.—Nothing in this sec- study the student is pursuing in accordance LEAF Act, the Secretary, during the period tion shall be construed to— with subsection (c); beginning July 1, 1999, and ending September ‘‘(A) exclude from eligibility courses of ‘‘(4) not owe a refund on grants previously 30, 2024, shall pay to each eligible institution study that are noncredit or remedial in na- received at any institution of higher edu- such sums as may be necessary to pay to ture and that are determined by the institu- cation under this title, or be in default on each eligible student (determined in accord- tion to be necessary to help the student be any loan from a student loan fund at any in- ance with section 420F) for each academic prepared for the pursuit of a first under- stitution provided for in part D, or a loan year during which that student is in attend- graduate baccalaureate degree or certificate made, insured, or guaranteed by the Sec- ance at an institution of higher education, as or, in the case of courses in English language retary under this title for attendance at any an undergraduate, a farmer opportunity instruction, to be necessary to enable the institution; grant in the amount for which that student student to utilize already existing knowl- ‘‘(5) file with the institution of higher edu- is eligible, as determined pursuant to sub- edge, training, or skills; and cation that the student intends to attend, or S6234 CONGRESSIONAL RECORD — SENATE June 11, 1998

is attending, a document, that need not be from the education or training in accordance ‘‘(2) DENIAL OR TERMINATION.—If there is a notarized, but that shall include— with such process as the State shall pre- determination by the Secretary that the so- ‘‘(A) a statement of educational purpose scribe. Any such process described or ap- cial security number provided to an eligible stating that the money attributable to the proved by a State for the purposes of this institution by a student is incorrect, the in- grant will be used solely for expenses related section shall be effective 6 months after the stitution shall deny or terminate the stu- to attendance or continued attendance at date of submission to the Secretary unless dent’s eligibility for any grant under this the institution; and the Secretary disapproves the process. In de- subpart until such time as the student pro- ‘‘(B) the student’s social security number; termining whether to approve or disapprove vides documented evidence of a social secu- and the process, the Secretary shall take into ac- rity number that is determined by the insti- ‘‘(6) be a citizen of the United States. count the effectiveness of the process in ena- tution to be correct. ‘‘(b) TOBACCO FARM FAMILIES.— bling students without secondary school di- ‘‘(3) CONSTRUCTION.—Nothing in this sub- ‘‘(1) IN GENERAL.—For the purpose of sub- plomas or the recognized equivalent to bene- section shall be construed to permit the Sec- section (a)(1), a student is a member of a to- fit from the instruction offered by institu- retary to take any compliance, disallowance, bacco farm family if during calendar year tions utilizing the process, and shall also penalty, or other regulatory action against— 1998 the student was— take into account the cultural diversity, eco- ‘‘(A) any institution of higher education ‘‘(A) an individual who— nomic circumstances, and educational prepa- with respect to any error in a social security ‘‘(i) is a participating tobacco producer (as ration of the populations served by the insti- number, unless the error was a result of defined in section 1002 of the LEAF Act) who tutions. fraud on the part of the institution; or is a principal producer of tobacco on a farm; ‘‘(e) SPECIAL RULE FOR CORRESPONDENCE ‘‘(B) any student with respect to any error or COURSES.—A student shall not be eligible to in a social security number, unless the error ‘‘(ii) is otherwise actively engaged in the receive a grant under this subpart for a cor- was a result of fraud on the part of the stu- production of tobacco; respondence course unless the course is part dent.’’. ‘‘(B) a spouse, son, daughter, stepson, or of a program leading to an associate, bach- Subtitle D—Immunity stepdaughter of an individual described in elor, or graduate degree. subparagraph (A); SEC. 1041. GENERAL IMMUNITY FOR TOBACCO ‘‘(f) COURSES OFFERED THROUGH TELE- ‘‘(C) an individual who was a dependent PRODUCERS AND TOBACCO WARE- COMMUNICATIONS.— (within the meaning of section 152 of the In- HOUSE OWNERS. ‘‘(1) RELATION TO CORRESPONDENCE ternal Revenue Code of 1986) of an individual Notwithstanding any other provision of COURSES.—A student enrolled in a course of described in subparagraph (A). this title, a participating tobacco producer, instruction at an eligible institution of high- tobacco-related growers association, or to- ‘‘(2) ADMINISTRATION.—On request, the Sec- er education (other than an institute or retary of Agriculture shall provide to the bacco warehouse owner or employee may not school that meets the definition in section Secretary such information as is necessary be subject to liability in any Federal or 521(4)(C) of the Carl D. Perkins Vocational to carry out this subsection. State court for any cause of action resulting and Applied Technology Education Act (20 ‘‘(c) SATISFACTORY PROGRESS.— from the failure of any tobacco product man- U.S.C. 2471(4)(C))) that is offered in whole or ‘‘(1) IN GENERAL.—For the purpose of sub- ufacturer, distributor, or retailer to comply section (a)(3), a student is maintaining satis- in part through telecommunications and with the National Tobacco Policy and Youth factory progress if— leads to a recognized associate, bachelor, or Smoking Reduction Act. ‘‘(A) the institution at which the student is graduate degree conferred by the institution Subtitle E—Miscellaneous in attendance reviews the progress of the shall not be considered to be enrolled in cor- respondence courses unless the total amount SEC. 1051. ASSISTANCE FOR PRODUCERS EXPERI- student at the end of each academic year, or ENCING LOSSES OF FARM INCOME. of telecommunications and correspondence its equivalent, as determined by the institu- (a) IN GENERAL.—Notwithstanding any courses at the institution equals or exceeds tion; and other provision of this title, from amounts 50 percent of the courses. ‘‘(B) the student has at least a cumulative made available to carry out this title, the ‘‘(2) RESTRICTION OR REDUCTIONS OF FINAN- C average or its equivalent, or academic Secretary of Agriculture shall use CIAL AID.—A student’s eligibility to receive a standing consistent with the requirements $250,000,000 for each of fiscal years 1999 grant under this subpart may be reduced if a for graduation, as determined by the institu- through 2004 to establish a program to in- financial aid officer determines under the tion, at the end of the second such academic demnify eligible producers that have experi- discretionary authority provided in section year. enced, or are experiencing, catastrophic 479A that telecommunications instruction ‘‘(2) SPECIAL RULE.—Whenever a student losses in farm income, as determined by the results in a substantially reduced cost of at- fails to meet the eligibility requirements of Secretary. tendance to the student. subsection (a)(3) as a result of the applica- (b) GROSS INCOME AND PAYMENT LIMITA- ‘‘(3) DEFINITION.—For the purposes of this tion of this subsection and subsequent to TIONS.—In carrying out this section, the Sec- that failure the student has academic stand- subsection, the term ‘telecommunications’ retary shall, to the maximum extent prac- ing consistent with the requirements for means the use of television, audio, or com- ticable, use gross income and payment limi- graduation, as determined by the institu- puter transmission, including open broad- tations established for the Disaster Reserve tion, for any grading period, the student cast, closed circuit, cable, microwave, or sat- Assistance Program under section 813 of the may, subject to this subsection, again be eli- ellite, audio conferencing, computer con- Agricultural Act of 1970 (7 U.S.C. 1427a). ferencing, or video cassettes or discs, except gible under subsection (a)(3) for a grant SEC. 1052. APPLICABILITY OF TITLE XV. that the term does not include a course that under this subpart. Notwithstanding any other provision of is delivered using video cassette or disc re- ‘‘(3) WAIVER.—Any institution of higher this Act, title XV of this Act shall have no cordings at the institution and that is not education at which the student is in attend- force or effect. ance may waive paragraph (1) or (2) for delivered in person to other students of that institution. undue hardship based on— FORD AMENDMENT NOS. 2696–2697 ‘‘(A) the death of a relative of the student; ‘‘(g) STUDY ABROAD.—Nothing in this sub- ‘‘(B) the personal injury or illness of the part shall be construed to limit or otherwise (Ordered to lie on the table.) student; or prohibit access to study abroad programs ap- Mr. FORD (for himself, Mr. HOL- proved by the home institution at which a ‘‘(C) special circumstances as determined LINGS, and Mr. ROBB) submitted two by the institution. student is enrolled. An otherwise eligible student who is engaged in a program of amendments intended to be proposed ‘‘(d) STUDENTS WHO ARE NOT SECONDARY by them to amendment No. 2493 pro- SCHOOL GRADUATES.—In order for a student study abroad approved for academic credit who does not have a certificate of graduation by the home institution at which the student posed by Mr. LUGAR to the bill, S. 1415, from a school providing secondary education, is enrolled shall be eligible to receive a grant supra; as follows: or the recognized equivalent of the certifi- under this subpart, without regard to wheth- AMENDMENT NO. 2696 cate, to be eligible for any assistance under er the study abroad program is required as In lieu of the matter proposed to be in- this subpart, the student shall meet either 1 part of the student’s degree program. serted, insert the following: of the following standards: ‘‘(h) VERIFICATION OF SOCIAL SECURITY TITLE X—LONG-TERM ECONOMIC ‘‘(1) EXAMINATION.—The student shall take NUMBER.—The Secretary, in cooperation ASSISTANCE FOR FARMERS an independently administered examination with the Commissioner of Social Security, and shall achieve a score, specified by the shall verify any social security number pro- SEC. 1001. SHORT TITLE. Secretary, demonstrating that the student vided by a student to an eligible institution This title may be cited as the ‘‘Long-Term can benefit from the education or training under subsection (a)(5)(B) and shall enforce Economic Assistance for Farmers Act’’ or being offered. The examination shall be ap- the following conditions: the ‘‘LEAF Act’’. proved by the Secretary on the basis of com- ‘‘(1) PENDING VERIFICATION.—Except as pro- SEC. 1002. DEFINITIONS. pliance with such standards for development, vided in paragraphs (2) and (3), an institution In this title: administration, and scoring as the Secretary shall not deny, reduce, delay, or terminate a (1) PARTICIPATING TOBACCO PRODUCER.—The may prescribe in regulations. student’s eligibility for assistance under this term ‘‘participating tobacco producer’’ ‘‘(2) DETERMINATION.—The student shall be subpart because social security number ver- means a quota holder, quota lessee, or quota determined as having the ability to benefit ification is pending. tenant. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6235

(2) QUOTA HOLDER.—The term ‘‘quota hold- paid under section 1022 for the fiscal year; (B) 25 percent of the average number of er’’ means an owner of a farm on January 1, and pounds of tobacco quota described in sub- 1998, for which a tobacco farm marketing (B) $450,000,000 for each of fiscal year 2009 paragraph (A) for which a quota tenant was quota or farm acreage allotment was estab- through 2023, less any amount required to be the principal producer of the tobacco quota. lished under the Agricultural Adjustment paid under section 1022 during the fiscal (4) QUOTA TENANTS.—The base quota level Act of 1938 (7 U.S.C. 1281 et seq.). year; for a quota tenant shall be equal to the sum (3) QUOTA LESSEE.—The term ‘‘quota les- (4) section 1031 for assistance provided of— see’’ means— under the tobacco worker transition pro- (A) 50 percent of the average number of (A) a producer that owns a farm that pro- gram, but not to exceed $25,000,000 for any pounds of tobacco quota established for a duced tobacco pursuant to a lease and trans- fiscal year; and farm for the 1995 through 1997 marketing fer to that farm of all or part of a tobacco (5) subpart 9 of part A of title IV of the years— farm marketing quota or farm acreage allot- Higher Education Act of 1965 for farmer op- (i) that was owned by a quota holder; and ment established under the Agricultural Ad- portunity grants, but not to exceed— (ii) for which the quota tenant was the justment Act of 1938 (7 U.S.C. 1281 et seq.) for (A) $42,500,000 for each of the academic principal producer of the tobacco on the any of the 1995, 1996, or 1997 crop years; or years 1999–2000 through 2003–2004; farm; and (B) a producer that rented land from a (B) $50,000,000 for each of the academic (B) 25 percent of the average number of farm operator to produce tobacco under a to- years 2004–2005 through 2008–2009; pounds of tobacco quota for the 1995 through bacco farm marketing quota or farm acreage (C) $57,500,000 for each of the academic 1997 marketing years— allotment established under the Agricultural years 2009–2010 through 2013–2014; (i)(I) that was leased and transferred to a Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) (D) $65,000,000 for each of the academic farm owned by the quota lessee; or for any of the 1995, 1996, or 1997 crop years. years 2014–2015 through 2018–2019; and (II) for which the rights to produce the to- (4) QUOTA TENANT.—The term ‘‘quota ten- (E) $72,500,000 for each of the academic bacco were rented to the quota lessee; and ant’’ means a producer that— years 2019–2020 through 2023–2024. (ii) for which the quota tenant was the (A) is the principal producer, as deter- SEC. 1013. BUDGETARY TREATMENT. principal producer of the tobacco on the mined by the Secretary, of tobacco on a farm This subtitle constitutes budget authority farm. where tobacco is produced pursuant to a to- in advance of appropriations Acts and rep- (5) MARKETING QUOTAS OTHER THAN POUND- bacco farm marketing quota or farm acreage resents the obligation of the Federal Govern- AGE QUOTAS.— allotment established under the Agricultural ment to provide payments to States and eli- (A) IN GENERAL.—For each type of tobacco Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) gible persons in accordance with this title. for which there is a marketing quota or al- for any of the 1995, 1996, or 1997 crop years; Subtitle B—Tobacco Market Transition lotment (on an acreage basis), the base quota and Assistance level for each quota holder, quota lessee, or quota tenant shall be determined in accord- (B) is not a quota holder or quota lessee. SEC. 1021. PAYMENTS FOR LOST TOBACCO ance with this subsection (based on a pound- (5) SECRETARY.—The term ‘‘Secretary’’ QUOTA. means— (a) IN GENERAL.—Beginning with the 1999 age conversion) by multiplying— (A) in subtitles A and B, the Secretary of marketing year, the Secretary shall make (i) the average tobacco farm marketing Agriculture; and payments for lost tobacco quota to eligible quota or allotment for the 1995 through 1997 marketing years; and (B) in section 1031, the Secretary of Labor. quota holders, quota lessees, and quota ten- (ii) the average yield per acre for the farm (6) TOBACCO PRODUCT IMPORTER.—The term ants as reimbursement for lost tobacco for the type of tobacco for the marketing ‘‘tobacco product importer’’ has the meaning quota. years. given the term ‘‘importer’’ in section 5702 of (b) ELIGIBILITY.—To be eligible to receive (B) YIELDS NOT AVAILABLE.—If the average the Internal Revenue Code of 1986. payments under this section, a quota holder, quota lessee, or quota tenant shall— yield per acre is not available for a farm, the (7) TOBACCO PRODUCT MANUFACTURER.— (1) prepare and submit to the Secretary an Secretary shall calculate the base quota for (A) IN GENERAL.—The term ‘‘tobacco prod- application at such time, in such manner, the quota holder, quota lessee, or quota ten- uct manufacturer’’ has the meaning given and containing such information as the Sec- ant (based on a poundage conversion) by de- the term ‘‘manufacturer of tobacco prod- retary may require, including information termining the amount equal to the product ucts’’ in section 5702 of the Internal Revenue sufficient to make the demonstration re- obtained by multiplying— Code of 1986. quired under paragraph (2); and (i) the average tobacco farm marketing (B) EXCLUSION.—The term ‘‘tobacco prod- (2) demonstrate to the satisfaction of the quota or allotment for the 1995 through 1997 uct manufacturer’’ does not include a person Secretary that, with respect to the 1997 mar- marketing years; and that manufactures cigars or pipe tobacco. keting year— (ii) the average county yield per acre for (8) TOBACCO WAREHOUSE OWNER.—The term (A) the producer was a quota holder and re- the county in which the farm is located for ‘‘tobacco warehouse owner’’ means a ware- alized income (or would have realized in- the type of tobacco for the marketing years. houseman that participated in an auction come, as determined by the Secretary, but (d) PAYMENTS FOR LOST TOBACCO QUOTA market (as defined in the first section of the for a medical hardship or crop disaster dur- FOR TYPES OF TOBACCO OTHER THAN FLUE- Tobacco Inspection Act (7 U.S.C. 511)) during ing the 1997 marketing year) from the pro- CURED TOBACCO.— the 1998 marketing year. duction of tobacco through— (1) ALLOCATION OF FUNDS.—Of the amounts (9) FLUE-CURED TOBACCO.—The term ‘‘flue- (i) the active production of tobacco; made available under section 1011(d)(1) for cured tobacco’’ includes type 21 and type 37 (ii) the lease and transfer of tobacco quota payments for lost tobacco quota, the Sec- tobacco. to another farm; retary shall make available for payments Subtitle A—Tobacco Community (iii) the rental of all or part of the farm of under this subsection an amount that bears Revitalization the quota holder, including the right to the same ratio to the amounts made avail- able as— SEC. 1011. AUTHORIZATION OF APPROPRIATIONS. produce tobacco, to another tobacco pro- ducer; or (A) the sum of all national marketing There are appropriated and transferred to (iv) the hiring of a quota tenant to produce quotas for all types of tobacco other than the Secretary for each fiscal year such tobacco; flue-cured tobacco during the 1995 through amounts from the National Tobacco Trust (B) the producer was a quota lessee; or 1997 marketing years; bears to Fund established by section 401, other than (C) the producer was a quota tenant. (B) the sum of all national marketing from amounts in the State Litigation Settle- (c) BASE QUOTA LEVEL.— quotas for all types of tobacco during the ment Account, as may be necessary to carry (1) IN GENERAL.—The Secretary shall deter- 1995 through 1997 marketing years. out the provisions of this title. mine, for each quota holder, quota lessee, (2) OPTION TO RELINQUISH QUOTA.— SEC. 1012. EXPENDITURES. and quota tenant, the base quota level for (A) IN GENERAL.—Each quota holder, for The Secretary is authorized, subject to ap- the 1995 through 1997 marketing years. types of tobacco other than flue-cured to- propriations, to make payments under— (2) QUOTA HOLDERS.—The base quota level bacco, shall be given the option to relinquish (1) section 1021 for payments for lost to- for a quota holder shall be equal to the aver- the farm marketing quota or farm acreage bacco quota for each of fiscal years 1999 age tobacco farm marketing quota estab- allotment of the quota holder in exchange through 2023, but not to exceed $1,650,000,000 lished for the farm owned by the quota hold- for a payment made under paragraph (3). for any fiscal year except to the extent the er for the 1995 through 1997 marketing years. (B) NOTIFICATION.—A quota holder shall payments are made in accordance with sub- (3) QUOTA LESSEES.—The base quota level give notification of the intention of the section (d)(12) or (e)(9) of section 1021; for a quota lessee shall be equal to— quota holder to exercise the option at such (2) section 1022 for industry payments for (A) 50 percent of the average number of time and in such manner as the Secretary all costs of the Department of Agriculture pounds of tobacco quota established for the may require, but not later than January 15, associated with the production of tobacco; farm for the 1995 through 1997 marketing 1999. (3) section 1023 for tobacco community eco- years— (3) PAYMENTS FOR LOST TOBACCO QUOTA TO nomic development grants, but not to ex- (i) that was leased and transferred to a QUOTA HOLDERS EXERCISING OPTIONS TO RELIN- ceed— farm owned by the quota lessee; or QUISH QUOTA.— (A) $375,000,000 for each of fiscal years 1999 (ii) that was rented to the quota lessee for (A) IN GENERAL.—Subject to subparagraph through 2008, less any amount required to be the right to produce the tobacco; less (E), for each of fiscal years 1999 through 2008, S6236 CONGRESSIONAL RECORD — SENATE June 11, 1998 the Secretary shall make annual payments the farm marketing quota or farm acreage as otherwise provided in this subsection, dur- for lost tobacco quota to each quota holder allotment for a type of tobacco reallocated, ing any marketing year in which the na- that has relinquished the farm marketing the Secretary shall reapportion the farm tional marketing quota for a type of tobacco quota or farm acreage allotment of the quota marketing quota or farm acreage allotment is less than the average national marketing holder under paragraph (2). among the remaining quota holders for the quota for the type of tobacco for the 1995 (B) AMOUNT.—The amount of a payment type of tobacco within the same county. through 1997 marketing years, the Secretary made to a quota holder described in subpara- (ii) CROSS-COUNTY LEASING.—In a State in shall make payments for lost tobacco quota graph (A) for a marketing year shall equal which cross-county leasing is authorized pur- to each quota lessee and quota tenant, for 1⁄10 of the lifetime limitation established suant to section 319(l) of the Agricultural types of tobacco other than flue-cured to- under subparagraph (E). Adjustment Act of 1938 (7 U.S.C. 1314e(l)), the bacco, that is eligible under subsection (b) in (C) TIMING.—The Secretary shall begin Secretary shall reapportion the farm mar- an amount that is equal to the product ob- making annual payments under this para- keting quota among the remaining quota tained by multiplying— graph for the marketing year in which the holders for the type of tobacco within the (A) the percentage by which the national farm marketing quota or farm acreage allot- same State. marketing quota for the type of tobacco is ment is relinquished. (iii) ELIGIBILITY OF QUOTA HOLDER FOR PAY- less than the average national marketing (D) ADDITIONAL PAYMENTS.—The Secretary MENTS.—If a farm marketing quota is re- quota for the type of tobacco for the 1995 may increase annual payments under this apportioned to a quota holder under this sub- through 1997 marketing years; paragraph in accordance with paragraph paragraph— (B) the base quota level for the quota les- (7)(E) to the extent that funding is available. (I) the quota holder shall not be eligible for see or quota tenant; and (E) LIFETIME LIMITATION ON PAYMENTS.— any additional payments under paragraph (5) (C) $4 per pound. The total amount of payments made under or (6) as a result of the reapportionment; and (7) LIFETIME LIMITATION ON PAYMENTS.—Ex- this paragraph to a quota holder shall not (II) the base quota level for the quota hold- cept as otherwise provided in this sub- exceed the product obtained by multiplying er shall not be increased as a result of the re- section, the total amount of payments made the base quota level for the quota holder by apportionment. under this subsection to a quota holder, $8 per pound. (E) SPECIAL RULE FOR TENANT OF LEASED quota lessee, or quota tenant during the life- (4) REISSUANCE OF QUOTA.— TOBACCO.—If a quota holder exercises an op- time of the quota holder, quota lessee, or (A) REALLOCATION TO LESSEE OR TENANT.— tion to relinquish a tobacco farm marketing quota tenant shall not exceed the product If a quota holder exercises an option to relin- quota or farm acreage allotment under para- obtained by multiplying— quish a tobacco farm marketing quota or graph (2), the farm marketing quota or farm (A) the base quota level for the quota hold- farm acreage allotment under paragraph (2), acreage allotment shall be divided evenly be- er, quota lessee, or quota tenant; and a quota lessee or quota tenant that was the tween, and the option of reallocating the (B) $8 per pound. primary producer during the 1997 marketing farm marketing quota or farm acreage allot- (8) LIMITATIONS ON AGGREGATE ANNUAL PAY- year of tobacco pursuant to the farm mar- ment shall be offered in equal portions to, MENTS.— keting quota or farm acreage allotment, as the quota lessee and to the quota tenant, if— (A) IN GENERAL.—Except as otherwise pro- determined by the Secretary, shall be given (i) during the 1997 marketing year, the vided in this paragraph, the total amount the option of having an allotment of the farm marketing quota or farm acreage allot- payable under this subsection for any mar- farm marketing quota or farm acreage allot- ment was leased and transferred to a farm keting year shall not exceed the amount ment reallocated to a farm owned by the owned by the quota lessee; and made available under paragraph (1). quota lessee or quota tenant. (ii) the quota tenant was the primary pro- (B) ACCELERATED PAYMENTS.—Paragraph (B) CONDITIONS FOR REALLOCATION.— ducer, as determined by the Secretary, of to- (1) shall not apply if accelerated payments (i) TIMING.—A quota lessee or quota tenant bacco pursuant to the farm marketing quota for lost tobacco quota are made in accord- that is given the option of having an allot- or farm acreage allotment. ance with paragraph (12). ment of a farm marketing quota or farm (5) PAYMENTS FOR LOST TOBACCO QUOTA TO (C) REDUCTIONS.—If the sum of the acreage allotment reallocated to a farm QUOTA HOLDERS.— amounts determined under paragraphs (3), owned by the quota lessee or quota tenant (A) IN GENERAL.—Except as otherwise pro- (5), and (6) for a marketing year exceeds the under subparagraph (A) shall have 1 year vided in this subsection, during any market- amount made available under paragraph (1), from the date on which a farm marketing ing year in which the national marketing the Secretary shall make a pro rata reduc- quota or farm acreage allotment is relin- quota for a type of tobacco is less than the tion in the amounts payable under para- quished under paragraph (2) to exercise the average national marketing quota for the graphs (5) and (6) to quota holders, quota les- option. 1995 through 1997 marketing years, the Sec- sees, and quota tenants under this sub- (ii) LIMITATION ON ACREAGE ALLOTMENT.—In retary shall make payments for lost tobacco section to ensure that the total amount of the case of a farm acreage allotment, the quota to each quota holder, for types of to- payments for lost tobacco quota does not ex- acreage allotment determined for any farm bacco other than flue-cured tobacco, that is ceed the amount made available under para- subsequent to any reallocation under sub- eligible under subsection (b), and has not ex- graph (1). paragraph (A) shall not exceed 50 percent of ercised an option to relinquish a tobacco (D) ROLLOVER OF PAYMENTS FOR LOST TO- the acreage of cropland of the farm owned by farm marketing quota or farm acreage allot- BACCO QUOTA.—Subject to subparagraph (A), the quota lessee or quota tenant. ment under paragraph (2), in an amount that if the Secretary makes a reduction in ac- (iii) LIMITATION ON MARKETING QUOTA.—In is equal to the product obtained by multiply- cordance with subparagraph (C), the amount the case of a farm marketing quota, the mar- ing— of the reduction shall be applied to the next keting quota determined for any farm subse- (i) the number of pounds by which the marketing year and added to the payments quent to any reallocation under subpara- basic farm marketing quota (or poundage for lost tobacco quota for the marketing graph (A) shall not exceed an amount deter- conversion) is less than the base quota level year. mined by multiplying— for the quota holder; and (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- (I) the average county farm yield, as deter- (ii) $4 per pound. ERS EXERCISING OPTION TO RELINQUISH mined by the Secretary; and (B) POUNDAGE CONVERSION FOR MARKETING QUOTA.—If the amount made available under (II) 50 percent of the acreage of cropland of QUOTAS OTHER THAN POUNDAGE QUOTAS.— paragraph (1) exceeds the sum of the the farm owned by the quota lessee or quota (i) IN GENERAL.—For each type of tobacco amounts determined under paragraphs (3), tenant. for which there is a marketing quota or al- (5), and (6) for a marketing year, the Sec- (C) ELIGIBILITY OF LESSEE OR TENANT FOR lotment (on an acreage basis), the poundage retary shall distribute the amount of the ex- PAYMENTS.—If a farm marketing quota or conversion for each quota holder during a cess pro rata to quota holders that have ex- farm acreage allotment is reallocated to a marketing year shall be determined by mul- ercised an option to relinquish a tobacco quota lessee or quota tenant under subpara- tiplying— farm marketing quota or farm acreage allot- graph (A)— (I) the basic farm acreage allotment for ment under paragraph (2) by increasing the (i) the quota lessee or quota tenant shall the farm for the marketing year; and amount payable to each such holder under not be eligible for any additional payments (II) the average yield per acre for the farm paragraph (3). under paragraph (5) or (6) as a result of the for the type of tobacco. (9) SUBSEQUENT SALE AND TRANSFER OF reallocation; and (ii) YIELD NOT AVAILABLE.—If the average QUOTA.—Effective beginning with the 1999 (ii) the base quota level for the quota les- yield per acre is not available for a farm, the marketing year, on the sale and transfer of a see or quota tenant shall not be increased as Secretary shall calculate the poundage con- farm marketing quota or farm acreage allot- a result of the reallocation. version for each quota holder during a mar- ment under section 316(g) or 319(g) of the Ag- (D) REALLOCATION TO QUOTA HOLDERS WITH- keting year by multiplying— ricultural Adjustment Act of 1938 (7 U.S.C. IN SAME COUNTY OR STATE.— (I) the basic farm acreage allotment for 1314b(g), 1314e(g))— (i) IN GENERAL.—Except as provided in the farm for the marketing year; and (A) the person that sold and transferred clause (ii), if there was no quota lessee or (II) the average county yield per acre for the quota or allotment shall have— quota tenant for the farm marketing quota the county in which the farm is located for (i) the base quota level attributable to the or farm acreage allotment for a type of to- the type of tobacco. person reduced by the base quota level at- bacco, or if no quota lessee or quota tenant (6) PAYMENTS FOR LOST TOBACCO QUOTA TO tributable to the quota that is sold and exercises an option of having an allotment of QUOTA LESSEES AND QUOTA TENANTS.—Except transferred; and June 11, 1998 CONGRESSIONAL RECORD — SENATE S6237

(ii) the lifetime limitation on payments es- (D) REFERENDUM VOTE NOT A TRIGGERING retary shall make payments for lost tobacco tablished under paragraph (7) attributable to EVENT.—A referendum vote of producers for quota to each quota lessee or quota tenant the person reduced by the product obtained any type of tobacco that results in the na- that— by multiplying— tional marketing quota or national acreage (i) is eligible under subsection (b); (I) the base quota level attributable to the allotment not being in effect for the type of (ii) has been issued an individual tobacco quota; and tobacco shall not be considered a triggering production permit under section 317A(b) of (II) $8 per pound; and event under this paragraph. the Agricultural Adjustment Act of 1938; and (B) if the quota or allotment has never (13) BAN ON SUBSEQUENT SALE OR LEASING OF (iii) has not exercised an option to relin- been relinquished by a previous quota holder FARM MARKETING QUOTA OR FARM ACREAGE AL- quish the permit. under paragraph (2), the person that acquired LOTMENT TO QUOTA HOLDERS EXERCISING OP- (B) AMOUNT.—The amount of a payment the quota shall have— TION TO RELINQUISH QUOTA.—No quota holder made to a quota lessee or quota tenant de- (i) the base quota level attributable to the that exercises the option to relinquish a scribed in subparagraph (A) for a marketing person increased by the base quota level at- farm marketing quota or farm acreage allot- tributable to the quota that is sold and ment for any type of tobacco under para- year shall be equal to the product obtained transferred; and graph (2) shall be eligible to acquire a farm by multiplying— (ii) the lifetime limitation on payments es- marketing quota or farm acreage allotment (i) the number of pounds by which the indi- tablished under paragraph (7) attributable to for the type of tobacco, or to obtain the lease vidual marketing limitation established for the person— or transfer of a farm marketing quota or the permit is less than twice the base quota (I) increased by the product obtained by farm acreage allotment for the type of to- level for the quota lessee or quota tenant; multiplying— bacco, for a period of 25 crop years after the and (aa) the base quota level attributable to date on which the quota or allotment was re- (ii) $2 per pound. the quota; and linquished. (5) PAYMENTS FOR LOST FLUE-CURED TO- (bb) $8 per pound; but (e) PAYMENTS FOR LOST TOBACCO QUOTA BACCO QUOTA TO QUOTA LESSEES AND QUOTA (II) decreased by any payments under para- FOR FLUE-CURED TOBACCO.— TENANTS THAT HAVE RELINQUISHED PERMITS.— graph (5) for lost tobacco quota previously (1) ALLOCATION OF FUNDS.—Of the amounts (A) IN GENERAL.—For each of fiscal years made that are attributable to the quota that made available under section 1011(d)(1) for 1999 through 2008, the Secretary shall make is sold and transferred. payments for lost tobacco quota, the Sec- annual payments for lost flue-cured tobacco (10) SALE OR TRANSFER OF FARM.—On the retary shall make available for payments quota to each quota lessee and quota tenant sale or transfer of ownership of a farm that under this subsection an amount that bears that has relinquished an individual tobacco is owned by a quota holder, the base quota the same ratio to the amounts made avail- production permit under section 317A(b)(5) of level established under subsection (c), the able as— the Agricultural Adjustment Act of 1938. (A) the sum of all national marketing right to payments under paragraph (5), and (B) AMOUNT.—The amount of a payment the lifetime limitation on payments estab- quotas for flue-cured tobacco during the 1995 made to a quota lessee or quota tenant de- through 1997 marketing years; bears to lished under paragraph (7) shall transfer to scribed in subparagraph (A) for a marketing the new owner of the farm to the same ex- (B) the sum of all national marketing year shall be equal to 1⁄10 of the lifetime limi- quotas for all types of tobacco during the tent and in the same manner as those provi- tation established under paragraph (6). sions applied to the previous quota holder. 1995 through 1997 marketing years. (C) TIMING.—The Secretary shall begin (11) DEATH OF QUOTA LESSEE OR QUOTA TEN- (2) RELINQUISHMENT OF QUOTA.— making annual payments under this para- ANT.—If a quota lessee or quota tenant that (A) IN GENERAL.—Each quota holder of flue- graph for the marketing year in which the is entitled to payments under this subsection cured tobacco shall relinquish the farm mar- dies and is survived by a spouse or 1 or more keting quota or farm acreage allotment in individual tobacco production permit is re- dependents, the right to receive the pay- exchange for a payment made under para- linquished. ments shall transfer to the surviving spouse graph (3) due to the transition from farm (D) ADDITIONAL PAYMENTS.—The Secretary or, if there is no surviving spouse, to the sur- marketing quotas as provided under section may increase annual payments under this viving dependents in equal shares. 317 of the Agricultural Adjustment Act of paragraph in accordance with paragraph (12) ACCELERATION OF PAYMENTS.— 1938 for flue-cured tobacco to individual to- (7)(E) to the extent that funding is available. (A) IN GENERAL.—On the occurrence of any bacco production permits as provided under (E) PROHIBITION AGAINST PERMIT EXPAN- of the events described in subparagraph (B), section 317A of the Agricultural Adjustment SION.—A quota lessee or quota tenant that the Secretary shall make an accelerated Act of 1938 for flue-cured tobacco. receives a payment under this paragraph lump sum payment for lost tobacco quota as (B) NOTIFICATION.—The Secretary shall no- shall be ineligible to receive any new or in- established under paragraphs (5) and (6) to tify the quota holders of the relinquishment creased tobacco production permit from the each quota holder, quota lessee, and quota of their quota or allotment at such time and county production pool established under tenant for any affected type of tobacco in ac- in such manner as the Secretary may re- section 317A(b)(8) of the Agricultural Adjust- cordance with subparagraph (C). quire, but not later than November 15, 1998. ment Act of 1938. (B) TRIGGERING EVENTS.—The Secretary (3) PAYMENTS FOR LOST FLUE-CURED TO- (6) LIFETIME LIMITATION ON PAYMENTS.—Ex- shall make accelerated payments under sub- BACCO QUOTA TO QUOTA HOLDERS THAT RELIN- cept as otherwise provided in this sub- paragraph (A) if after the date of enactment QUISH QUOTA.— section, the total amount of payments made of this Act— (A) IN GENERAL.—For each of fiscal years under this subsection to a quota holder, (i) subject to subparagraph (D), for 3 con- 1999 through 2008, the Secretary shall make quota lessee, or quota tenant during the life- secutive marketing years, the national mar- annual payments for lost flue-cured tobacco time of the quota holder, quota lessee, or keting quota or national acreage allotment to each quota holder that has relinquished quota tenant shall not exceed the product for a type of tobacco is less than 50 percent the farm marketing quota or farm acreage obtained by multiplying— of the national marketing quota or national allotment of the quota holder under para- (A) the base quota level for the quota hold- acreage allotment for the type of tobacco for graph (2). er, quota lessee, or quota tenant; and the 1998 marketing year; or (B) AMOUNT.—The amount of a payment (B) $8 per pound. (ii) Congress repeals or makes ineffective, made to a quota holder described in subpara- (7) LIMITATIONS ON AGGREGATE ANNUAL PAY- directly or indirectly, any provision of— graph (A) for a marketing year shall equal MENTS.— (I) section 316 of the Agricultural Adjust- 1⁄10 of the lifetime limitation established (A) IN GENERAL.—Except as otherwise pro- ment Act of 1938 (7 U.S.C. 1314b); under paragraph (6). vided in this paragraph, the total amount (II) section 319 of the Agricultural Adjust- (C) TIMING.—The Secretary shall begin ment Act of 1938 (7 U.S.C. 1314e); making annual payments under this para- payable under this subsection for any mar- (III) section 106 of the Agricultural Act of graph for the marketing year in which the keting year shall not exceed the amount 1949 (7 U.S.C. 1445); farm marketing quota or farm acreage allot- made available under paragraph (1). (IV) section 106A of the Agricultural Act of ment is relinquished. (B) ACCELERATED PAYMENTS.—Paragraph 1949 (7 U.S.C. 1445–1); or (D) ADDITIONAL PAYMENTS.—The Secretary (1) shall not apply if accelerated payments (V) section 106B of the Agricultural Act of may increase annual payments under this for lost flue-cured tobacco quota are made in 1949 (7 U.S.C. 1445–2). paragraph in accordance with paragraph accordance with paragraph (9). (C) AMOUNT.—The amount of the acceler- (7)(E) to the extent that funding is available. (C) REDUCTIONS.—If the sum of the ated payments made to each quota holder, (4) PAYMENTS FOR LOST FLUE-CURED TO- amounts determined under paragraphs (3), quota lessee, and quota tenant under this BACCO QUOTA TO QUOTA LESSEES AND QUOTA (4), and (5) for a marketing year exceeds the subsection shall be equal to— TENANTS THAT HAVE NOT RELINQUISHED PER- amount made available under paragraph (1), (i) the amount of the lifetime limitation MITS.— the Secretary shall make a pro rata reduc- established for the quota holder, quota les- (A) IN GENERAL.—Except as otherwise pro- tion in the amounts payable under paragraph see, or quota tenant under paragraph (7); less vided in this subsection, during any market- (4) to quota lessees and quota tenants under (ii) any payments for lost tobacco quota ing year in which the national marketing this subsection to ensure that the total received by the quota holder, quota lessee, or quota for flue-cured tobacco is less than the amount of payments for lost flue-cured to- quota tenant before the occurrence of any of average national marketing quota for the bacco quota does not exceed the amount the events described in subparagraph (B). 1995 through 1997 marketing years, the Sec- made available under paragraph (1). S6238 CONGRESSIONAL RECORD — SENATE June 11, 1998

(D) ROLLOVER OF PAYMENTS FOR LOST FLUE- gated at the end of each fiscal year to reim- justments on account of overpayments or CURED TOBACCO QUOTA.—Subject to subpara- burse the Secretary for— underpayments, as the Secretary may deter- graph (A), if the Secretary makes a reduc- (1) costs associated with the administra- mine. tion in accordance with subparagraph (C), tion of programs established under this title (3) REALLOTMENTS.—Any portion of the al- the amount of the reduction shall be applied and amendments made by this title; lotment of a State under subsection (c) that to the next marketing year and added to the (2) costs associated with the administra- the Secretary determines will not be used to payments for lost flue-cured tobacco quota tion of the tobacco quota and price support carry out this section in accordance with an for the marketing year. programs administered by the Secretary; approved State application required under (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- (3) costs to the Federal Government of car- subsection (b), shall be reallotted by the Sec- ERS EXERCISING OPTION TO RELINQUISH QUOTAS rying out crop insurance programs for to- retary to other States in proportion to the OR PERMITS, OR TO QUOTA LESSEES OR QUOTA bacco; original allotments to the other States. TENANTS RELINQUISHING PERMITS.—If the (4) costs associated with all agricultural (e) USE AND DISTRIBUTION OF FUNDS.— amount made available under paragraph (1) research, extension, or education activities (1) IN GENERAL.—Amounts received by a exceeds the sum of the amounts determined associated with tobacco; State under this section shall be used to under paragraphs (3), (4), and (5) for a mar- (5) costs associated with the administra- carry out economic development activities, keting year, the Secretary shall distribute tion of loan association and cooperative pro- including— the amount of the excess pro rata to quota grams for tobacco producers, as approved by (A) rural business enterprise activities de- holders by increasing the amount payable to the Secretary; and scribed in subsections (c) and (e) of section each such holder under paragraphs (3) and (6) any other costs incurred by the Depart- 310B of the Consolidated Farm and Rural De- (5). ment of Agriculture associated with the pro- velopment Act (7 U.S.C. 1932); (8) DEATH OF QUOTA HOLDER, QUOTA LESSEE, duction of tobacco. (B) down payment loan assistance pro- OR QUOTA TENANT.—If a quota holder, quota (b) LIMITATIONS.—Amounts made available grams that are similar to the program de- lessee or quota tenant that is entitled to under subsection (a) may not be used— scribed in section 310E of the Consolidated payments under paragraph (4) or (5) dies and (1) to provide direct benefits to quota hold- Farm and Rural Development Act (7 U.S.C. is survived by a spouse or 1 or more descend- ers, quota lessees, or quota tenants; or 1935); ants, the right to receive the payments shall (2) in a manner that results in a decrease, (C) activities designed to help create pro- transfer to the surviving spouse or, if there or an increase relative to other crops, in the ductive farm or off-farm employment in is no surviving spouse, to the surviving de- amount of the crop insurance premiums as- rural areas to provide a more viable eco- scendants in equal shares. sessed to participating tobacco producers nomic base and enhance opportunities for (9) ACCELERATION OF PAYMENTS.— under the Federal Crop Insurance Act (7 improved incomes, living standards, and con- (A) IN GENERAL.—On the occurrence of any U.S.C. 1501 et seq.). tributions by rural individuals to the eco- (c) DETERMINATIONS.—Not later than Sep- of the events described in subparagraph (B), nomic and social development of tobacco tember 30, 1998, and each fiscal year there- the Secretary shall make an accelerated communities; after, the Secretary shall determine— lump sum payment for lost flue-cured to- (D) activities that expand existing infra- (1) the amount of costs described in sub- bacco quota as established under paragraphs structure, facilities, and services to capital- section (a); and (3), (4), and (5) to each quota holder, quota ize on opportunities to diversify economies (2) the amount that will be provided under lessee, and quota tenant for flue-cured to- in tobacco communities and that support the this section as reimbursement for the costs. bacco in accordance with subparagraph (C). development of new industries or commer- (B) TRIGGERING EVENTS.—The Secretary SEC. 1023. TOBACCO COMMUNITY ECONOMIC DE- cial ventures; VELOPMENT GRANTS. shall make accelerated payments under sub- (E) activities by agricultural organizations paragraph (A) if after the date of enactment (a) AUTHORITY.—The Secretary shall make grants to tobacco-growing States in accord- that provide assistance directly to partici- of this Act— pating tobacco producers to assist in devel- (i) subject to subparagraph (D), for 3 con- ance with this section to enable the States to carry out economic development initia- oping other agricultural activities that sup- secutive marketing years, the national mar- plement tobacco-producing activities; keting quota or national acreage allotment tives in tobacco-growing communities. (b) APPLICATION.—To be eligible to receive (F) initiatives designed to create or expand for flue-cured tobacco is less than 50 percent payments under this section, a State shall locally owned value-added processing and of the national marketing quota or national prepare and submit to the Secretary an ap- marketing operations in tobacco commu- acreage allotment for flue-cured tobacco for plication at such time, in such manner, and nities; the 1998 marketing year; or containing such information as the Sec- (G) technical assistance activities by per- (ii) Congress repeals or makes ineffective, retary may require, including— sons to support farmer-owned enterprises, or directly or indirectly, any provision of— (1) a description of the activities that the agriculture-based rural development enter- (I) section 316 of the Agricultural Adjust- State will carry out using amounts received prises, of the type described in section 252 or ment Act of 1938 (7 U.S.C. 1314b); under the grant; 253 of the Trade Act of 1974 (19 U.S.C. 2342, (II) section 319 of the Agricultural Adjust- (2) a designation of an appropriate State 2343); and ment Act of 1938 (7 U.S.C. 1314e); agency to administer amounts received (H) initiatives designed to partially com- (III) section 106 of the Agricultural Act of under the grant; and pensate tobacco warehouse owners for lost 1949 (7 U.S.C. 1445); (3) a description of the steps to be taken to revenues and assist the tobacco warehouse (IV) section 106A of the Agricultural Act of ensure that the funds are distributed in ac- owners in establishing successful business 1949 (7 U.S.C. 1445–1); cordance with subsection (e). enterprises. (V) section 106B of the Agricultural Act of (c) AMOUNT OF GRANT.— (2) TOBACCO-GROWING COUNTIES.—Assistance 1949 (7 U.S.C. 1445–2); or (1) IN GENERAL.—From the amounts avail- may be provided by a State under this sec- (VI) section 317A of the Agricultural Ad- able to carry out this section for a fiscal tion only to assist a county in the State that justment Act of 1938. year, the Secretary shall allot to each State has been determined by the Secretary to (C) AMOUNT.—The amount of the acceler- an amount that bears the same ratio to the have in excess of $100,000 in income derived ated payments made to each quota holder, amounts available as the total farm income from the production of tobacco during 1 or quota lessee, and quota tenant under this of the State derived from the production of more of the 1995 through 1997 marketing subsection shall be equal to— tobacco during the 1995 through 1997 market- years. For purposes of this section, the term (i) the amount of the lifetime limitation ing years (as determined under paragraph ‘‘tobacco-growing county’’ includes a politi- established for the quota holder, quota les- (2)) bears to the total farm income of all cal subdivision surrounded within a State by see, or quota tenant under paragraph (6); less States derived from the production of to- a county that has been determined by the (ii) any payments for lost flue-cured to- bacco during the 1995 through 1997 marketing Secretary to have in excess of $100,000 in in- bacco quota received by the quota holder, years. come derived from the production of tobacco quota lessee, or quota tenant before the oc- (2) TOBACCO INCOME.—For the 1995 through during 1 or more of the 1995 through 1997 currence of any of the events described in 1997 marketing years, the Secretary shall de- marketing years. subparagraph (B). termine the amount of farm income derived (3) DISTRIBUTION.— (D) REFERENDUM VOTE NOT A TRIGGERING from the production of tobacco in each State (A) ECONOMIC DEVELOPMENT ACTIVITIES.— EVENT.—A referendum vote of producers for and in all States. Not less than 20 percent of the amounts re- flue-cured tobacco that results in the na- (d) PAYMENTS.— ceived by a State under this section shall be tional marketing quota or national acreage (1) IN GENERAL.—A State that has an appli- used to carry out— allotment not being in effect for flue-cured cation approved by the Secretary under sub- (i) economic development activities de- tobacco shall not be considered a triggering section (b) shall be entitled to a payment scribed in subparagraph (E) or (F) of para- event under this paragraph. under this section in an amount that is equal graph (1); or SEC. 1022. INDUSTRY PAYMENTS FOR ALL DE- to its allotment under subsection (c). (ii) agriculture-based rural development PARTMENT COSTS ASSOCIATED (2) FORM OF PAYMENTS.—The Secretary activities described in paragraph (1)(G). WITH TOBACCO PRODUCTION. may make payments under this section to a (B) TECHNICAL ASSISTANCE ACTIVITIES.—Not (a) IN GENERAL.—The Secretary shall use State in installments, and in advance or by less than 4 percent of the amounts received such amounts remaining unspent and obli- way of reimbursement, with necessary ad- by a State under this section shall be used to June 11, 1998 CONGRESSIONAL RECORD — SENATE S6239 carry out technical assistance activities de- that may be planted by the holder of a per- with the Commodity Credit Corporation to scribed in paragraph (1)(G). mit during a marketing year, calculated— make price support available to producers of (C) TOBACCO WAREHOUSE OWNER INITIA- ‘‘(A) prior to— flue-cured tobacco to establish or maintain TIVES.—Not less than 6 percent of the ‘‘(i) any increase or decrease in the number the inventory at the reserve stock level for amounts received by a State under this sec- due to undermarketings or overmarketings; flue-cured tobacco. tion during each of fiscal years 1999 through and ‘‘(7) PERMIT YIELD.—The term ‘permit 2008 shall be used to carry out initiatives de- ‘‘(ii) any reduction under subsection (i); yield’ means the yield of tobacco per acre for scribed in paragraph (1)(H). and an individual tobacco production permit (D) TOBACCO-GROWING COUNTIES.—To be eli- ‘‘(B) in a manner that ensures that— holder that is— gible to receive payments under this section, ‘‘(i) the total of all individual acreage limi- ‘‘(A) based on a preliminary permit yield a State shall demonstrate to the Secretary tations is equal to the national acreage al- that is equal to the average yield during the that funding will be provided, during each 5- lotment, less the reserve provided under sub- 5 marketing years immediately preceding year period for which funding is provided section (h); and the marketing year for which the determina- under this section, for activities in each ‘‘(ii) the individual acreage limitation for a tion is made in the county where the holder county in the State that has been deter- marketing year bears the same ratio to the of the permit is authorized to plant flue- mined under paragraph (2) to have in excess individual acreage limitation for the pre- cured tobacco, as determined by the Sec- of $100,000 in income derived from the pro- vious marketing year as the ratio that the retary, on the basis of actual yields of farms duction of tobacco, in amounts that are at national acreage allotment for the market- in the county; and least equal to the product obtained by mul- ing year bears to the national acreage allot- ‘‘(B) adjusted by a weighted national yield tiplying— ment for the previous marketing year, sub- factor calculated by— (i) the ratio that the tobacco production ject to adjustments by the Secretary to ac- ‘‘(i) multiplying each preliminary permit income in the county determined under para- count for any reserve provided under sub- yield by the individual acreage limitation, graph (2) bears to the total tobacco produc- section (h). prior to adjustments for overmarketings, tion income for the State determined under ‘‘(2) INDIVIDUAL MARKETING LIMITATION.— undermarketings, or reductions required subsection (c); and The term ‘individual marketing limitation’ under subsection (i); and (ii) 50 percent of the total amounts re- means the number of pounds of flue-cured to- ‘‘(ii) dividing the sum of the products ceived by a State under this section during bacco that may be marketed by the holder of under clause (i) for all flue-cured individual the 5-year period. a permit during a marketing year, cal- tobacco production permit holders by the na- (f) PREFERENCES IN HIRING.—A State may culated— tional acreage allotment. ‘‘(b) INITIAL ISSUANCE OF PERMITS.— require recipients of funds under this section ‘‘(A) prior to— ‘‘(1) TERMINATION OF FLUE-CURED MARKET- to provide a preference in employment to— ‘‘(i) any increase or decrease in the number ING QUOTAS.—On the date of enactment of the (1) an individual who— due to undermarketings or overmarketings; National Tobacco Policy and Youth Smoking (A) during the 1998 calendar year, was em- and Reduction Act, farm marketing quotas as ployed in the manufacture, processing, or ‘‘(ii) any reduction under subsection (i); provided under section 317 shall no longer be warehousing of tobacco or tobacco products, and ‘‘(B) in a manner that ensures that— in effect for flue-cured tobacco. or resided, in a county described in sub- ‘‘(i) the total of all individual marketing ‘‘(2) ISSUANCE OF PERMITS TO QUOTA HOLD- section (e)(2); and limitations is equal to the national market- ERS THAT WERE PRINCIPAL PRODUCERS.— (B) is eligible for assistance under the to- ing quota, less the reserve provided under ‘‘(A) IN GENERAL.—By January 15, 1999, bacco worker transition program established subsection (h); and each individual quota holder under section under section 1031; or ‘‘(ii) the individual marketing limitation 317 that was a principal producer of flue- (2) an individual who— for a marketing year is obtained by mul- cured tobacco during the 1998 marketing (A) during the 1998 marketing year, carried tiplying the individual acreage limitation by year, as determined by the Secretary, shall out tobacco quota or relevant tobacco pro- the permit yield, prior to any adjustment for be issued an individual tobacco production duction activities in a county described in undermarketings or overmarketings. permit under this section. subsection (e)(2); ‘‘(3) INDIVIDUAL TOBACCO PRODUCTION PER- ‘‘(B) NOTIFICATION.—The Secretary shall (B) is eligible for a farmer opportunity MIT.—The term ‘individual tobacco produc- notify the holder of each permit of the indi- grant under subpart 9 of part A of title IV of tion permit’ means a permit issued by the vidual acreage limitation and the individual the Higher Education Act of 1965; and Secretary to a person authorizing the pro- marketing limitation applicable to the hold- (C) has successfully completed a course of duction of flue-cured tobacco for any mar- er for each marketing year. study at an institution of higher education. keting year during which this section is ef- ‘‘(C) INDIVIDUAL ACREAGE LIMITATION FOR (g) MAINTENANCE OF EFFORT.— fective. 1999 MARKETING YEAR.—In establishing the in- (1) IN GENERAL.—Subject to paragraph (2), a ‘‘(4) NATIONAL ACREAGE ALLOTMENT.—The dividual acreage limitation for the 1999 mar- State shall provide an assurance to the Sec- term ‘national acreage allotment’ means the keting year under this section, the farm retary that the amount of funds expended by quantity determined by dividing— acreage allotment that was allotted to a the State and all counties in the State de- ‘‘(A) the national marketing quota; by farm owned by the quota holder for the 1997 scribed in subsection (e)(2) for any activities ‘‘(B) the national average yield goal. marketing year shall be considered the indi- funded under this section for a fiscal year is ‘‘(5) NATIONAL AVERAGE YIELD GOAL.—The vidual acreage limitation for the previous not less than 90 percent of the amount of term ‘national average yield goal’ means the marketing year. funds expended by the State and counties for national average yield for flue-cured tobacco ‘‘(D) INDIVIDUAL MARKETING LIMITATION FOR the activities for the preceding fiscal year. during the 5 marketing years immediately 1999 MARKETING YEAR.—In establishing the in- (2) REDUCTION OF GRANT AMOUNT.—If a preceding the marketing year for which the dividual marketing limitation for the 1999 State does not provide an assurance de- determination is being made. marketing year under this section, the farm scribed in paragraph (1), the Secretary shall ‘‘(6) NATIONAL MARKETING QUOTA.—For the marketing quota that was allotted to a farm reduce the amount of the grant determined 1999 and each subsequent crop of flue-cured owned by the quota holder for the 1997 mar- under subsection (c) by an amount equal to tobacco, the term ‘national marketing keting year shall be considered the individ- the amount by which the amount of funds quota’ for a marketing year means the quan- ual marketing limitation for the previous expended by the State and counties for the tity of flue-cured tobacco, as determined by marketing year. activities is less than 90 percent of the the Secretary, that is not more than 103 per- ‘‘(3) QUOTA HOLDERS THAT WERE NOT PRIN- amount of funds expended by the State and cent nor less than 97 percent of the total of— CIPAL PRODUCERS.— counties for the activities for the preceding ‘‘(A) the aggregate of the quantities of ‘‘(A) IN GENERAL.—Except as provided in fiscal year, as determined by the Secretary. flue-cured tobacco that domestic manufac- subparagraph (B), on approval through a ref- (3) FEDERAL FUNDS.—For purposes of this turers of cigarettes estimate that the manu- erendum under subsection (c)— subsection, the amount of funds expended by facturers intend to purchase on the United ‘‘(i) each person that was a quota holder a State or county shall not include any States auction markets or from producers under section 317 but that was not a prin- amounts made available by the Federal Gov- during the marketing year, as compiled and cipal producer of flue-cured tobacco during ernment. determined under section 320A; the 1997 marketing year, as determined by SEC. 1024. FLUE-CURED TOBACCO PRODUCTION ‘‘(B) the average annual quantity of flue- the Secretary, shall not be eligible to own a PERMITS. cured tobacco exported from the United permit; and The Agricultural Adjustment Act of 1938 is States during the 3 marketing years imme- ‘‘(ii) the Secretary shall not issue any per- amended by inserting after section 317 (7 diately preceding the marketing year for mit during the 25-year period beginning on U.S.C. 1314c) the following: which the determination is being made; and the date of enactment of this Act to any per- ‘‘SEC. 317A. FLUE-CURED TOBACCO PRODUCTION ‘‘(C) the quantity, if any, of flue-cured to- son that was a quota holder and was not the PERMITS. bacco that the Secretary, in the discretion of principal producer of flue-cured tobacco dur- ‘‘(a) DEFINITIONS.—In this section: the Secretary, determines is necessary to in- ing the 1997 marketing year. ‘‘(1) INDIVIDUAL ACREAGE LIMITATION.—The crease or decrease the inventory of the pro- ‘‘(B) MEDICAL HARDSHIPS AND CROP DISAS- term ‘individual acreage limitation’ means ducer-owned cooperative marketing associa- TERS.—Subparagraph (A) shall not apply to a the number of acres of flue-cured tobacco tion that has entered into a loan agreement person that would have been the principal S6240 CONGRESSIONAL RECORD — SENATE June 11, 1998 producer of flue-cured tobacco during the established under paragraph (8) for realloca- ‘‘(ii) the availability of land, labor, and 1997 marketing year but for a medical hard- tion by the appropriate county committee. equipment for the production of tobacco; ship or crop disaster that occurred during ‘‘(6) ACTIVE PRODUCER REQUIREMENT.— ‘‘(iii) crop rotation practices; and the 1997 marketing year. ‘‘(A) REQUIREMENT FOR SHARING RISK.—No ‘‘(iv) the soil and other physical factors af- ‘‘(C) ADMINISTRATION.—The Secretary shall individual tobacco production permit shall fecting the production of tobacco. issue regulations— be issued to, or maintained by, a person that ‘‘(D) MEDICAL HARDSHIPS AND CROP DISAS- ‘‘(i) defining the term ‘person’ for the pur- does not fully share in the risk of producing TERS.—Notwithstanding any other provision pose of this paragraph; and a crop of flue-cured tobacco. of this Act, the Secretary may issue an indi- ‘‘(ii) prescribing such rules as the Sec- ‘‘(B) CRITERIA FOR SHARING RISK.—For pur- vidual tobacco production permit under this retary determines are necessary to ensure a poses of this paragraph, a person shall be paragraph to a producer that is otherwise in- fair and reasonable application of the prohi- considered to have fully shared in the risk of eligible for the permit due to a medical hard- bition established under this paragraph. production of a crop if— ship or crop disaster that occurred during ‘‘(4) ISSUANCE OF PERMITS TO PRINCIPAL ‘‘(i) the investment of the person in the the 1997 marketing year. PRODUCERS OF FLUE-CURED TOBACCO.— production of the crop is not less than 100 ‘‘(c) REFERENDUM.— ‘‘(A) IN GENERAL.—By January 15, 1999, percent of the costs of production associated ‘‘(1) ANNOUNCEMENT OF QUOTA AND ALLOT- each individual quota lessee or quota tenant with the crop; MENT.—Not later than December 15, 1998, the (as defined in section 1002 of the LEAF Act) ‘‘(ii) the amount of the person’s return on Secretary pursuant to subsection (b) shall that was the principal producer of flue-cured the investment is dependent solely on the determine and announce— tobacco during the 1997 marketing year, as sale price of the crop; and ‘‘(A) the quantity of the national market- determined by the Secretary, shall be issued ‘‘(iii) the person may not receive any of the ing quota for flue-cured tobacco for the 1999 an individual tobacco production permit return before the sale of the crop. marketing year; and under this section. ‘‘(B) the national acreage allotment and ‘‘(C) PERSONS NOT SHARING RISK.— ‘‘(B) INDIVIDUAL ACREAGE LIMITATIONS.—In national average yield goal for the 1999 crop ‘‘(i) FORFEITURE.—Any person that fails to establishing the individual acreage limita- fully share in the risks of production under of flue-cured tobacco. tion for the 1999 marketing year under this this paragraph shall forfeit an individual to- ‘‘(2) SPECIAL REFERENDUM.—Not later than section, the farm acreage allotment that was 30 days after the announcement of the quan- allotted to a farm owned by a quota holder bacco production permit if, after notice and opportunity for a hearing, the appropriate tity of the national marketing quota in 2001, for whom the quota lessee or quota tenant the Secretary shall conduct a special ref- was the principal producer of flue-cured to- county committee determines that the con- ditions for forfeiture exist. erendum of the tobacco production permit bacco during the 1997 marketing year shall holders that were the principal producers of ‘‘(ii) REALLOCATION.—The Secretary shall be considered the individual acreage limita- flue-cured tobacco of the 1997 crop to deter- tion for the previous marketing year. add the authority to produce flue-cured to- bacco under the individual tobacco produc- mine whether the producers approve or op- ‘‘(C) INDIVIDUAL MARKETING LIMITATIONS.— pose the continuation of individual tobacco In establishing the individual marketing tion permit forfeited under this subpara- graph to the county production pool estab- production permits on an acreage-poundage limitation for the 1999 marketing year under basis as provided in this section for the 2002 this section, the individual marketing limi- lished under paragraph (8) for reallocation by the appropriate county committee. through 2004 marketing years. tation for the previous year for an individual ‘‘(3) APPROVAL OF PERMITS.—If the Sec- ‘‘(D) NOTICE.—Notice of any determination described in this paragraph shall be cal- 2 made by a county committee under subpara- retary determines that more than 66 ⁄3 per- culated by multiplying— cent of the producers voting in the special ‘‘(i) the farm marketing quota that was al- graph (C) shall be mailed, as soon as prac- ticable, to the person involved. referendum approve the establishment of in- lotted to a farm owned by a quota holder for dividual tobacco production permits on an whom the quota lessee or quota holder was ‘‘(E) REVIEW.—If the person is dissatisfied with the determination, the person may re- acreage-poundage basis— the principal producer of flue-cured tobacco ‘‘(A) individual tobacco production permits during the 1997 marketing year, by quest, not later than 15 days after notice of the determination is received, a review of on an acreage-poundage basis as provided in ‘‘(ii) the ratio that— this section shall be in effect for the 2002 ‘‘(I) the sum of all flue-cured tobacco farm the determination by a local review commit- through 2004 marketing years; and marketing quotas for the 1997 marketing tee under the procedures established under ‘‘(B) marketing quotas on an acreage- year prior to adjusting for undermarketing section 363 for farm marketing quotas. poundage basis shall cease to be in effect for and overmarketing; bears to ‘‘(7) COUNTY OF ORIGIN REQUIREMENT.—For the 2002 through 2004 marketing years. ‘‘(II) the sum of all flue-cured tobacco farm the 1999 and each subsequent crop of flue- ‘‘(4) DISAPPROVAL OF PERMITS.—If individ- marketing quotas for the 1998 marketing cured tobacco, all tobacco produced pursuant ual tobacco production permits on an acre- year, after adjusting for undermarketing and to an individual tobacco production permit age-poundage basis are not approved by more overmarketing. shall be produced in the same county in than 662⁄3 percent of the producers voting in ‘‘(D) SPECIAL RULE FOR TENANT OF LEASED which was produced the tobacco produced the referendum, no marketing quotas on an FLUE-CURED TOBACCO.—If the farm marketing during the 1997 marketing year pursuant to quota or farm acreage allotment of a quota the farm marketing quota or farm acreage acreage-poundage basis shall continue in ef- holder was produced pursuant to an agree- allotment on which the individual tobacco fect that were proclaimed under section 317 ment under which a quota lessee rented land production permit is based. prior to the referendum. ‘‘(5) APPLICABLE MARKETING YEARS.—If in- from a quota holder and a quota tenant was ‘‘(8) COUNTY PRODUCTION POOL.— dividual tobacco production permits have the primary producer, as determined by the ‘‘(A) IN GENERAL.—The authority to Secretary, of flue-cured tobacco pursuant to produce flue-cured tobacco under an individ- been made effective for flue-cured tobacco on the farm marketing quota or farm acreage ual tobacco production permit that is for- an acreage-poundage basis pursuant to this allotment, the farm marketing quota or feited, relinquished, or surrendered within a subsection, the Secretary shall, not later farm acreage allotment shall be divided pro- county may be reallocated by the appro- than December 15 of any future marketing portionately between the quota lessee and priate county committee to tobacco produc- year, announce a national marketing quota quota tenant for purposes of issuing individ- ers located in the same county that apply to for that type of tobacco for the next 3 suc- ual tobacco production permits under this the committee to produce flue-cured tobacco ceeding marketing years if the marketing paragraph. under the authority. year is the last year of 3 consecutive years for which individual tobacco production per- ‘‘(5) OPTION OF QUOTA LESSEE OR QUOTA TEN- ‘‘(B) PRIORITY.—In reallocating individual mits previously proclaimed will be in effect. ANT TO RELINQUISH PERMIT.— tobacco production permits under this para- ‘‘(d) ANNUAL ANNOUNCEMENT OF NATIONAL ‘‘(A) IN GENERAL.—Each quota lessee or graph, a county committee shall provide a MARKETING QUOTA.—The Secretary shall de- quota tenant that is issued an individual to- priority to— termine and announce the national market- bacco production permit under paragraph (4) ‘‘(i) an active tobacco producer that con- ing quota, national acreage allotment, and shall be given the option of relinquishing the trols the authority to produce a quantity of national average yield goal for the second permit in exchange for payments made under flue-cured tobacco under an individual to- and third marketing years of any 3-year pe- section 1021(e)(5) of the LEAF Act. bacco production permit that is equal to or riod for which individual tobacco production ‘‘(B) NOTIFICATION.—A quota lessee or less than the average number of pounds of permits are in effect on or before the Decem- quota tenant that is issued an individual to- flue-cured tobacco that was produced by the ber 15 immediately preceding the beginning bacco production permit shall give notifica- producer during each of the 1995 through 1997 of the marketing year to which the quota, tion of the intention to exercise the option marketing years, as determined by the Sec- allotment, and goal apply. at such time and in such manner as the Sec- retary; and ‘‘(e) ANNUAL ANNOUNCEMENT OF INDIVIDUAL retary may require, but not later than 45 ‘‘(ii) a new tobacco producer. TOBACCO PRODUCTION PERMITS.—If a national days after the permit is issued. ‘‘(C) CRITERIA.—Individual tobacco produc- marketing quota, national acreage allot- ‘‘(C) REALLOCATION OF PERMIT.—The Sec- tion permits shall be reallocated by the ap- ment, and national average yield goal are de- retary shall add the authority to produce propriate county committee under this para- termined and announced, the Secretary shall flue-cured tobacco under the individual to- graph in a fair and equitable manner after provide for the determination of individual bacco production permit relinquished under taking into consideration— tobacco production permits, individual acre- this paragraph to the county production pool ‘‘(i) the experience of the producer; age limitations, and individual marketing June 11, 1998 CONGRESSIONAL RECORD — SENATE S6241

limitations under this section for the crop ‘‘(4) PERMIT YIELD.—The permit yield for (1) IN GENERAL.—Section 106 of the Agricul- and marketing year covered by the deter- any producer for which a new individual to- tural Act of 1949 (7 U.S.C. 1445) is amended by minations. bacco production permit is established shall striking subsection (g). ‘‘(f) ASSIGNMENT OF TOBACCO PRODUCTION be determined on the basis of available pro- (2) CONFORMING AMENDMENT.—Section PERMITS.— ductivity data for the land involved and 422(c) of the Uruguay Round Agreements Act ‘‘(1) LIMITATION TO SAME COUNTY.—Each in- yields for similar farms in the same county. (Public Law 103–465; 7 U.S.C. 1445 note) is dividual tobacco production permit holder ‘‘(i) PENALTIES.— amended by striking ‘‘section 106(g), 106A, or shall assign the individual acreage limita- ‘‘(1) PRODUCTION ON OTHER FARMS.—If any 106B of the Agricultural Act of 1949 (7 U.S.C. tion and individual marketing limitation to quantity of tobacco is marketed as having 1445(g), 1445–1, or 1445–2)’’ and inserting ‘‘sec- 1 or more farms located within the county of been produced under an individual acreage tion 106A or 106B of the Agricultural Act of origin of the individual tobacco production limitation or individual marketing limita- 1949 (7 U.S.C. 1445–1, 1445–2)’’. tion assigned to a farm but was produced on permit. (d) ADJUSTMENT FOR LAND RENTAL COSTS.— ‘‘(2) FILING WITH COUNTY COMMITTEE.—The a different farm, the individual acreage limi- Section 106 of the Agricultural Act of 1949 (7 assignment of an individual acreage limita- tation or individual marketing limitation U.S.C. 1445) is amended by adding at the end tion and individual marketing limitation for the following marketing year shall be the following: shall not be effective until evidence of the forfeited. assignment, in such form as required by the ‘‘(2) FALSE REPORT.—If a person to which ‘‘(h) ADJUSTMENT FOR LAND RENTAL Secretary, is filed with and determined by an individual tobacco production permit is COSTS.—For each of the 1999 and 2000 mar- the county committee for the county in issued files, or aids or acquiesces in the fil- keting years for flue-cured tobacco, after which the farm involved is located. ing of, a false report with respect to the as- consultation with producers, State farm or- ‘‘(3) LIMITATION ON TILLABLE CROPLAND.— signment of an individual acreage limitation ganizations and cooperative associations, the The total acreage assigned to any farm or individual marketing limitation for a Secretary shall make an adjustment in the under this subsection shall not exceed the quantity of tobacco, the individual acreage price support level for flue-cured tobacco acreage of cropland on the farm. limitation or individual marketing limita- equal to the annual change in the average ‘‘(g) PROHIBITION ON SALE OR LEASING OF tion for the following marketing year shall cost per pound to flue-cured producers, as de- INDIVIDUAL TOBACCO PRODUCTION PERMITS.— be forfeited. termined by the Secretary, under agree- ‘‘(1) IN GENERAL.—Except as provided in ‘‘(j) MARKETING PENALTIES.— ments through which producers rent land to paragraphs (2) and (3), the Secretary shall ‘‘(1) IN GENERAL.—When individual tobacco produce flue-cured tobacco.’’. not permit the sale and transfer, or lease and production permits under this section are in (e) FIRE-CURED AND DARK AIR-CURED TO- transfer, of an individual tobacco production effect, provisions with respect to penalties BACCO PROGRAMS.— permit issued under this section. for the marketing of excess tobacco and the (1) LIMITATION ON TRANSFERS.—Section ‘‘(2) TRANSFER TO DESCENDANTS.— other provisions contained in section 314 318(g) of the Agricultural Adjustment Act of ‘‘(A) DEATH.—In the case of the death of a shall apply in the same manner and to the 1938 (7 U.S.C. 13l4d(g)) is amended— person to whom an individual tobacco pro- same extent as they would apply under sec- (A) by striking ‘‘ten’’ and inserting ‘‘30’’; duction permit has been issued under this tion 317(g) if farm marketing quotas were in and section, the permit shall transfer to the sur- effect. (B) by inserting ‘‘during any crop year’’ viving spouse of the person or, if there is no ‘‘(2) PRODUCTION ON OTHER FARMS.—If a pro- after ‘‘transferred to any farm’’. surviving spouse, to surviving direct de- ducer falsely identifies tobacco as having (2) LOSS OF ALLOTMENT OR QUOTA THROUGH scendants of the person. been produced on or marketed from a farm UNDERPLANTING.—Section 318 of the Agricul- ‘‘(B) TEMPORARY INABILITY TO FARM.—In to which an individual acreage limitation or tural Adjustment Act of 1938 (7 U.S.C. 1314d) the case of the death of a person to whom an individual marketing limitation has been as- is amended by adding at the end the follow- individual tobacco production permit has signed, future individual acreage limitations ing: been issued under this section and whose de- and individual marketing limitations shall scendants are temporarily unable to produce be forfeited.’’. ‘‘(k) LOSS OF ALLOTMENT OR QUOTA THROUGH UNDERPLANTING.—Effective for the a crop of tobacco, the Secretary may hold SEC. 1025. MODIFICATIONS IN FEDERAL TO- the license in the name of the descendants BACCO PROGRAMS. 1999 and subsequent marketing years, no acreage allotment or acreage-poundage for a period of not more than 18 months. (a) PROGRAM REFERENDA.—Section 312(c) of ‘‘(3) VOLUNTARY TRANSFERS.—A person that the Agricultural Adjustment Act of 1938 (7 quota, other than a new marketing quota, is eligible to obtain an individual tobacco U.S.C. 1312(c)) is amended— shall be established for a farm on which no production permit under this section may at (1) by striking ‘‘(c) Within thirty’’ and in- fire-cured or dark air-cured tobacco was any time transfer all or part of the permit to serting the following: planted or considered planted during at least 2 of the 3 crop years immediately preceding the person’s spouse or direct descendants ‘‘(c) REFERENDA ON QUOTAS.— the crop year for which the acreage allot- that are actively engaged in the production ‘‘(1) IN GENERAL.—Not later than 30’’; and of tobacco. (2) by adding at the end the following: ment or acreage-poundage quota would oth- erwise be established.’’. ‘‘(h) RESERVE.— ‘‘(2) REFERENDA ON PROGRAM CHANGES.— ‘‘(1) IN GENERAL.—For each marketing year ‘‘(A) IN GENERAL.—In the case of any type (f) EXPANSION OF TYPES OF TOBACCO SUB- for which individual tobacco production per- of tobacco for which marketing quotas are in JECT TO NO NET COST ASSESSMENT.— mits are in effect under this section, the Sec- effect, on the receipt of a petition from more (1) NO NET COST TOBACCO FUND.—Section retary may establish a reserve from the na- than 5 percent of the producers of that type 106A(d)(1)(A) of the Agricultural Act of 1949 tional marketing quota in a quantity equal of tobacco in a State, the Secretary shall (7 U.S.C. 1445–1(d)(1)(A)) is amended— to not more than 1 percent of the national conduct a statewide referendum on any pro- (A) in clause (ii), by inserting after ‘‘Bur- marketing quota to be available for— posal related to the lease and transfer of to- ley quota tobacco’’ the following: ‘‘and fire- ‘‘(A) making corrections of errors in indi- bacco quota within a State requested by the cured and dark air-cured quota tobacco’’; vidual acreage limitations and individual petition that is authorized under this part. and marketing limitations; ‘‘(B) APPROVAL OF PROPOSALS.—If a major- (B) in clause (iii)— ‘‘(B) adjusting inequities; and ity of producers of the type of tobacco in the (i) in the matter preceding subclause (I), by ‘‘(C) establishing individual tobacco pro- State approve a proposal in a referendum striking ‘‘Flue-cured or Burley tobacco’’ and duction permits for new tobacco producers conducted under subparagraph (A), the Sec- inserting ‘‘each kind of tobacco for which (except that not less than two-thirds of the retary shall implement the proposal in a price support is made available under this reserve shall be for establishing such permits manner that applies to all producers and Act, and each kind of like tobacco,’’; and for new tobacco producers). quota holders of that type of tobacco in the (ii) by striking subclause (II) and inserting ‘‘(2) ELIGIBLE PERSONS.—To be eligible for a State.’’. the following: new individual tobacco production permit, a (b) PURCHASE REQUIREMENTS.—Section 320B ‘‘(II) the sum of the amount of the per producer must not have been the principal of the Agricultural Adjustment Act of 1938 (7 pound producer contribution and purchaser producer of tobacco during the immediately U.S.C. 1314h) is amended— assessment (if any) for the kind of tobacco preceding 5 years. (1) in subsection (c)— payable under clauses (i) and (ii); and’’. ‘‘(3) APPORTIONMENT FOR NEW PRODUCERS.— (A) by striking ‘‘(c) The amount’’ and in- (2) NO NET COST TOBACCO ACCOUNT.—Section The part of the reserve held for apportion- serting ‘‘(c) AMOUNT OF PENALTY.—For the 106B(d)(1) of the Agricultural Act of 1949 (7 ment to new individual tobacco producers 1998 and subsequent marketing years, the U.S.C. 1445–2(d)(1)) is amended— shall be allotted on the basis of— amount’’; and (A) in subparagraph (B), by inserting after ‘‘(A) land, labor, and equipment available (B) by striking paragraph (1) and inserting ‘‘Burley quota tobacco’’ the following: ‘‘and for the production of tobacco; the following: fire-cured and dark air-cured tobacco’’; and ‘‘(B) crop rotation practices; ‘‘(1) 105 percent of the average market (B) in subparagraph (C), by striking ‘‘Flue- ‘‘(C) soil and other physical factors affect- price for the type of tobacco involved during cured and Burley tobacco’’ and inserting ing the production of tobacco; and the preceding marketing year; and’’. ‘‘each kind of tobacco for which price sup- ‘‘(D) the past tobacco-producing experience (c) ELIMINATION OF TOBACCO MARKETING port is made available under this Act, and of the producer. ASSESSMENT.— each kind of like tobacco,’’. S6242 CONGRESSIONAL RECORD — SENATE June 11, 1998

Subtitle C—Farmer and Worker Transition (d) COMPREHENSIVE ASSISTANCE.— with comprehensive assistance substantially Assistance (1) IN GENERAL.—Workers covered by a cer- similar to the assistance provided by this SEC. 1031. TOBACCO WORKER TRANSITION PRO- tification issued by the Secretary under sub- section becomes effective. GRAM. section (c)(1) shall be provided with benefits SEC. 1032. FARMER OPPORTUNITY GRANTS. (a) GROUP ELIGIBILITY REQUIREMENTS.— and services described in paragraph (2) in the Part A of title IV of the Higher Education (1) CRITERIA.—A group of workers (includ- same manner and to the same extent as Act of 1965 (20 U.S.C. 1070 et seq.) is amended ing workers in any firm or subdivision of a workers covered under a certification under by adding at the end the following: firm involved in the manufacture, process- subchapter A of title II of the Trade Act of ‘‘Subpart 9—Farmer Opportunity Grants ing, or warehousing of tobacco or tobacco 1974 (19 U.S.C. 2271 et seq.), except that the ‘‘SEC. 420D. STATEMENT OF PURPOSE. products) shall be certified as eligible to total amount of payments under this section ‘‘It is the purpose of this subpart to assist apply for adjustment assistance under this for any fiscal year shall not exceed in making available the benefits of post- section pursuant to a petition filed under $25,000,000. secondary education to eligible students (de- subsection (b) if the Secretary of Labor de- (2) BENEFITS AND SERVICES.—The benefits termined in accordance with section 420F) in termines that a significant number or pro- and services described in this paragraph are institutions of higher education by providing portion of the workers in the workers’ firm the following: farmer opportunity grants to all eligible stu- or an appropriate subdivision of the firm (A) Employment services of the type de- dents. have become totally or partially separated, scribed in section 235 of the Trade Act of 1974 or are threatened to become totally or par- ‘‘SEC. 420E. PROGRAM AUTHORITY; AMOUNT AND (19 U.S.C. 2295). DETERMINATIONS; APPLICATIONS. tially separated, and— (B) Training described in section 236 of the ‘‘(a) PROGRAM AUTHORITY AND METHOD OF (A) the sales or production, or both, of the Trade Act of 1974 (19 U.S.C. 2296), except that DISTRIBUTION.— firm or subdivision have decreased abso- notwithstanding the provisions of section ‘‘(1) PROGRAM AUTHORITY.—From amounts lutely; and 236(a)(2)(A) of that Act, the total amount of made available under section 1011(d)(5) of the (B) the implementation of the national to- payments for training under this section for LEAF Act, the Secretary, during the period bacco settlement contributed importantly to any fiscal year shall not exceed $12,500,000. beginning July 1, 1999, and ending September the workers’ separation or threat of separa- (C) Tobacco worker readjustment allow- 30, 2024, shall pay to each eligible institution tion and to the decline in the sales or pro- ances, which shall be provided in the same duction of the firm or subdivision. such sums as may be necessary to pay to manner as trade readjustment allowances each eligible student (determined in accord- (2) DEFINITION OF CONTRIBUTED IMPOR- are provided under part I of subchapter B of ance with section 420F) for each academic TANTLY.—In paragraph (1)(B), the term ‘‘con- chapter 2 of title II of the Trade Act of 1974 year during which that student is in attend- tributed importantly’’ means a cause that is (19 U.S.C. 2291 et seq.), except that— important but not necessarily more impor- ance at an institution of higher education, as (i) the provisions of sections 231(a)(5)(C) an undergraduate, a farmer opportunity tant than any other cause. and 231(c) of that Act (19 U.S.C. 2291(a)(5)(C), (3) REGULATIONS.—The Secretary shall grant in the amount for which that student 2291(c)), authorizing the payment of trade re- is eligible, as determined pursuant to sub- issue regulations relating to the application adjustment allowances on a finding that it is of the criteria described in paragraph (1) in section (b). Not less than 85 percent of the not feasible or appropriate to approve a sums shall be advanced to eligible institu- making preliminary findings under sub- training program for a worker, shall not be section (b) and determinations under sub- tions prior to the start of each payment pe- applicable to payment of allowances under riod and shall be based on an amount re- section (c). this section; and (b) PRELIMINARY FINDINGS AND BASIC AS- quested by the institution as needed to pay (ii) notwithstanding the provisions of sec- SISTANCE.— eligible students, except that this sentence tion 233(b) of that Act (19 U.S.C. 2293(b)), in (1) FILING OF PETITIONS.—A petition for cer- shall not be construed to limit the authority order for a worker to qualify for tobacco re- tification of eligibility to apply for adjust- of the Secretary to place an institution on a adjustment allowances under this section, ment assistance under this section may be reimbursement system of payment. the worker shall be enrolled in a training filed by a group of workers (including work- ‘‘(2) CONSTRUCTION.—Nothing in this sec- ers in any firm or subdivision of a firm in- program approved by the Secretary of the tion shall be construed to prohibit the Sec- volved in the manufacture, processing, or type described in section 236(a) of that Act retary from paying directly to students, in warehousing of tobacco or tobacco products) (19 U.S.C. 2296(a)) by the later of— advance of the beginning of the academic or by their certified or recognized union or (I) the last day of the 16th week of the term, an amount for which the students are other duly authorized representative with worker’s initial unemployment compensa- eligible, in cases where the eligible institu- the Governor of the State in which the work- tion benefit period; or tion elects not to participate in the disburse- ers’ firm or subdivision thereof is located. (II) the last day of the 6th week after the ment system required by paragraph (1). week in which the Secretary issues a certifi- (2) FINDINGS AND ASSISTANCE.—On receipt ‘‘(3) DESIGNATION.—Grants made under this of a petition under paragraph (1), the Gov- cation covering the worker. subpart shall be known as ‘farmer oppor- ernor shall— In cases of extenuating circumstances relat- tunity grants’. (A) notify the Secretary that the Governor ing to enrollment of a worker in a training ‘‘(b) AMOUNT OF GRANTS.— has received the petition; program under this section, the Secretary ‘‘(1) AMOUNTS.— (B) within 10 days after receiving the peti- may extend the time for enrollment for a pe- ‘‘(A) IN GENERAL.—The amount of the grant tion— riod of not to exceed 30 days. for a student eligible under this subpart (i) make a preliminary finding as to wheth- (D) Job search allowances of the type de- shall be— er the petition meets the criteria described scribed in section 237 of the Trade Act of 1974 ‘‘(i) $1,700 for each of the academic years in subsection (a)(1); and (19 U.S.C. 2297). 1999–2000 through 2003–2004; (ii) transmit the petition, together with a (E) Relocation allowances of the type de- ‘‘(ii) $2,000 for each of the academic years statement of the finding under clause (i) and scribed in section 238 of the Trade Act of 1974 2004–2005 through 2008–2009; reasons for the finding, to the Secretary for (19 U.S.C. 2298). ‘‘(iii) $2,300 for each of the academic years action under subsection (c); and (e) INELIGIBILITY OF INDIVIDUALS RECEIVING 2009–2010 through 2013–2014; (C) if the preliminary finding under sub- PAYMENTS FOR LOST TOBACCO QUOTA.—No ‘‘(iv) $2,600 for each of the academic years paragraph (B)(i) is affirmative, ensure that benefits or services may be provided under 2014–2015 through 2018–2019; and rapid response and basic readjustment serv- this section to any individual who has re- ‘‘(v) $2,900 for each of the academic years ices authorized under other Federal laws are ceived payments for lost tobacco quota 2019–2020 through 2023–2024. made available to the workers. under section 1021. ‘‘(B) PART-TIME RULE.—In any case where a (c) REVIEW OF PETITIONS BY SECRETARY; (f) FUNDING.—Of the amounts appropriated student attends an institution of higher edu- CERTIFICATIONS.— to carry out this title, the Secretary may cation on less than a full-time basis (includ- (1) IN GENERAL.—The Secretary, within 30 use not to exceed $25,000,000 for each of fiscal ing a student who attends an institution of days after receiving a petition under sub- years 1999 through 2008 to provide assistance higher education on less than a half-time section (b)(2)(B)(ii), shall determine whether under this section. basis) during any academic year, the amount the petition meets the criteria described in (g) EFFECTIVE DATE.—This section shall of the grant for which that student is eligi- subsection (a)(1). On a determination that take effect on the date that is the later of— ble shall be reduced in proportion to the de- the petition meets the criteria, the Sec- (1) October l, 1998; or gree to which that student is not so attend- retary shall issue to workers covered by the (2) the date of enactment of this Act. ing on a full-time basis, in accordance with petition a certification of eligibility to apply (h) TERMINATION DATE.—No assistance, a schedule of reductions established by the for the assistance described in subsection (d). vouchers, allowances, or other payments Secretary for the purposes of this subpara- (2) DENIAL OF CERTIFICATION.—On the de- may be provided under this section after the graph, computed in accordance with this nial of a certification with respect to a peti- date that is the earlier of— subpart. The schedule of reductions shall be tion under paragraph (1), the Secretary shall (1) the date that is 10 years after the effec- established by regulation and published in review the petition in accordance with the tive date of this section under subsection (g); the Federal Register. requirements of other applicable assistance or ‘‘(2) MAXIMUM.—No grant under this sub- programs to determine if the workers may be (2) the date on which legislation establish- part shall exceed the cost of attendance (as certified under the other programs. ing a program providing dislocated workers described in section 472) at the institution at June 11, 1998 CONGRESSIONAL RECORD — SENATE S6243 which that student is in attendance. If, with ents of farmer opportunity grants shall not ing consistent with the requirements for respect to any student, it is determined that be considered to be individual grantees for graduation, as determined by the institu- the amount of a grant exceeds the cost of at- purposes of the Drug-Free Workplace Act of tion, for any grading period, the student tendance for that year, the amount of the 1988 (41 U.S.C. 701 et seq.). may, subject to this subsection, again be eli- grant shall be reduced to an amount equal to ‘‘SEC. 420F. STUDENT ELIGIBILITY. gible under subsection (a)(3) for a grant the cost of attendance at the institution. ‘‘(a) IN GENERAL.—In order to receive any under this subpart. ‘‘(3) PROHIBITION.—No grant shall be award- grant under this subpart, a student shall— ‘‘(3) WAIVER.—Any institution of higher ed under this subpart to any individual who ‘‘(1) be a member of a tobacco farm family education at which the student is in attend- is incarcerated in any Federal, State, or in accordance with subsection (b); ance may waive paragraph (1) or (2) for local penal institution. ‘‘(2) be enrolled or accepted for enrollment undue hardship based on— ‘‘(c) PERIOD OF ELIGIBILITY FOR GRANTS.— in a degree, certificate, or other program (in- ‘‘(A) the death of a relative of the student; ‘‘(1) IN GENERAL.—The period during which cluding a program of study abroad approved ‘‘(B) the personal injury or illness of the a student may receive grants shall be the pe- for credit by the eligible institution at which student; or riod required for the completion of the first the student is enrolled) leading to a recog- ‘‘(C) special circumstances as determined undergraduate baccalaureate course of study nized educational credential at an institu- by the institution. being pursued by that student at the institu- tion of higher education that is an eligible ‘‘(d) STUDENTS WHO ARE NOT SECONDARY tion at which the student is in attendance, institution in accordance with section 487, SCHOOL GRADUATES.—In order for a student except that any period during which the stu- and not be enrolled in an elementary or sec- who does not have a certificate of graduation dent is enrolled in a noncredit or remedial ondary school; from a school providing secondary education, course of study as described in paragraph (2) ‘‘(3) if the student is presently enrolled at or the recognized equivalent of the certifi- shall not be counted for the purpose of this an institution of higher education, be main- cate, to be eligible for any assistance under paragraph. taining satisfactory progress in the course of this subpart, the student shall meet either 1 ‘‘(2) CONSTRUCTION.—Nothing in this sec- study the student is pursuing in accordance of the following standards: tion shall be construed to— with subsection (c); ‘‘(1) EXAMINATION.—The student shall take ‘‘(A) exclude from eligibility courses of ‘‘(4) not owe a refund on grants previously an independently administered examination study that are noncredit or remedial in na- received at any institution of higher edu- and shall achieve a score, specified by the ture and that are determined by the institu- cation under this title, or be in default on Secretary, demonstrating that the student tion to be necessary to help the student be any loan from a student loan fund at any in- can benefit from the education or training prepared for the pursuit of a first under- stitution provided for in part D, or a loan being offered. The examination shall be ap- graduate baccalaureate degree or certificate made, insured, or guaranteed by the Sec- proved by the Secretary on the basis of com- or, in the case of courses in English language retary under this title for attendance at any pliance with such standards for development, instruction, to be necessary to enable the institution; administration, and scoring as the Secretary student to utilize already existing knowl- ‘‘(5) file with the institution of higher edu- may prescribe in regulations. edge, training, or skills; and cation that the student intends to attend, or ‘‘(2) DETERMINATION.—The student shall be ‘‘(B) exclude from eligibility programs of is attending, a document, that need not be determined as having the ability to benefit study abroad that are approved for credit by notarized, but that shall include— from the education or training in accordance the home institution at which the student is ‘‘(A) a statement of educational purpose with such process as the State shall pre- enrolled. stating that the money attributable to the scribe. Any such process described or ap- ‘‘(3) PROHIBITION.—No student is entitled to grant will be used solely for expenses related proved by a State for the purposes of this receive farmer opportunity grant payments to attendance or continued attendance at section shall be effective 6 months after the concurrently from more than 1 institution or the institution; and date of submission to the Secretary unless from the Secretary and an institution. ‘‘(B) the student’s social security number; the Secretary disapproves the process. In de- ‘‘(d) APPLICATIONS FOR GRANTS.— and termining whether to approve or disapprove ‘‘(1) IN GENERAL.—The Secretary shall from ‘‘(6) be a citizen of the United States. the process, the Secretary shall take into ac- time to time set dates by which students ‘‘(b) TOBACCO FARM FAMILIES.— count the effectiveness of the process in ena- shall file applications for grants under this ‘‘(1) IN GENERAL.—For the purpose of sub- bling students without secondary school di- subpart. The filing of applications under this section (a)(1), a student is a member of a to- plomas or the recognized equivalent to bene- subpart shall be coordinated with the filing bacco farm family if during calendar year fit from the instruction offered by institu- of applications under section 401(c). 1998 the student was— tions utilizing the process, and shall also ‘‘(2) INFORMATION AND ASSURANCES.—Each ‘‘(A) an individual who— take into account the cultural diversity, eco- student desiring a grant for any year shall ‘‘(i) is a participating tobacco producer (as nomic circumstances, and educational prepa- file with the Secretary an application for the defined in section 1002 of the LEAF Act) who ration of the populations served by the insti- grant containing such information and as- is a principal producer of tobacco on a farm; tutions. surances as the Secretary may deem nec- or ‘‘(e) SPECIAL RULE FOR CORRESPONDENCE essary to enable the Secretary to carry out ‘‘(ii) is otherwise actively engaged in the COURSES.—A student shall not be eligible to the Secretary’s functions and responsibil- production of tobacco; receive a grant under this subpart for a cor- ities under this subpart. ‘‘(B) a spouse, son, daughter, stepson, or respondence course unless the course is part ‘‘(e) DISTRIBUTION OF GRANTS TO STU- stepdaughter of an individual described in of a program leading to an associate, bach- DENTS.—Payments under this section shall elor, or graduate degree. be made in accordance with regulations pro- subparagraph (A); mulgated by the Secretary for such purpose, ‘‘(C) an individual who was a dependent ‘‘(f) COURSES OFFERED THROUGH TELE- in such manner as will best accomplish the (within the meaning of section 152 of the In- COMMUNICATIONS.— purpose of this section. Any disbursement al- ternal Revenue Code of 1986) of an individual ‘‘(1) RELATION TO CORRESPONDENCE lowed to be made by crediting the student’s described in subparagraph (A). COURSES.—A student enrolled in a course of account shall be limited to tuition and fees ‘‘(2) ADMINISTRATION.—On request, the Sec- instruction at an eligible institution of high- and, in the case of institutionally owned retary of Agriculture shall provide to the er education (other than an institute or housing, room and board. The student may Secretary such information as is necessary school that meets the definition in section elect to have the institution provide other to carry out this subsection. 521(4)(C) of the Carl D. Perkins Vocational such goods and services by crediting the stu- ‘‘(c) SATISFACTORY PROGRESS.— and Applied Technology Education Act (20 dent’s account. ‘‘(1) IN GENERAL.—For the purpose of sub- U.S.C. 2471(4)(C))) that is offered in whole or ‘‘(f) INSUFFICIENT FUNDING.—If, for any fis- section (a)(3), a student is maintaining satis- in part through telecommunications and cal year, the funds made available to carry factory progress if— leads to a recognized associate, bachelor, or out this subpart are insufficient to satisfy ‘‘(A) the institution at which the student is graduate degree conferred by the institution fully all grants for students determined to be in attendance reviews the progress of the shall not be considered to be enrolled in cor- eligible under section 420F, the amount of student at the end of each academic year, or respondence courses unless the total amount the grant provided under subsection (b) shall its equivalent, as determined by the institu- of telecommunications and correspondence be reduced on a pro rata basis among all eli- tion; and courses at the institution equals or exceeds gible students. ‘‘(B) the student has at least a cumulative 50 percent of the courses. ‘‘(g) TREATMENT OF INSTITUTIONS AND STU- C average or its equivalent, or academic ‘‘(2) RESTRICTION OR REDUCTIONS OF FINAN- DENTS UNDER OTHER LAWS.—Any institution standing consistent with the requirements CIAL AID.—A student’s eligibility to receive a of higher education that enters into an for graduation, as determined by the institu- grant under this subpart may be reduced if a agreement with the Secretary to disburse to tion, at the end of the second such academic financial aid officer determines under the students attending that institution the year. discretionary authority provided in section amounts those students are eligible to re- ‘‘(2) SPECIAL RULE.—Whenever a student 479A that telecommunications instruction ceive under this subpart shall not be deemed, fails to meet the eligibility requirements of results in a substantially reduced cost of at- by virtue of the agreement, to be a contrac- subsection (a)(3) as a result of the applica- tendance to the student. tor maintaining a system of records to ac- tion of this subsection and subsequent to ‘‘(3) DEFINITION.—For the purposes of this complish a function of the Secretary. Recipi- that failure the student has academic stand- subsection, the term ‘telecommunications’ S6244 CONGRESSIONAL RECORD — SENATE June 11, 1998 means the use of television, audio, or com- ticable, use gross income and payment limi- Subtitle A—Tobacco Community puter transmission, including open broad- tations established for the Disaster Reserve Revitalization cast, closed circuit, cable, microwave, or sat- Assistance Program under section 813 of the SEC. 1011. AUTHORIZATION OF APPROPRIATIONS. ellite, audio conferencing, computer con- Agricultural Act of 1970 (7 U.S.C. 1427a). There are appropriated and transferred to ferencing, or video cassettes or discs, except SEC. 1052. APPLICABILITY OF TITLE XV. the Secretary for each fiscal year such that the term does not include a course that amounts from the National Tobacco Trust Notwithstanding any other provision of is delivered using video cassette or disc re- Fund established by section 401, other than this Act, title XV of this Act shall have no cordings at the institution and that is not from amounts in the State Litigation Settle- force or effect. delivered in person to other students of that ment Account, as may be necessary to carry institution. out the provisions of this title. ‘‘(g) STUDY ABROAD.—Nothing in this sub- AMENDMENT NO. 2697 SEC. 1012. EXPENDITURES. part shall be construed to limit or otherwise Strike title X and insert the following: The Secretary is authorized, subject to ap- prohibit access to study abroad programs ap- propriations, to make payments under— proved by the home institution at which a Strike ‘‘Strike title X.’’ and insert the fol- lowing: (1) section 1021 for payments for lost to- student is enrolled. An otherwise eligible bacco quota for each of fiscal years 1999 student who is engaged in a program of TITLE X—LONG-TERM ECONOMIC through 2023, but not to exceed $1,650,000,000 study abroad approved for academic credit ASSISTANCE FOR FARMERS for any fiscal year except to the extent the by the home institution at which the student SEC. 1001. SHORT TITLE. payments are made in accordance with sub- is enrolled shall be eligible to receive a grant section (d)(12) or (e)(9) of section 1021; This title may be cited as the ‘‘Long-Term under this subpart, without regard to wheth- (2) section 1022 for industry payments for Economic Assistance for Farmers Act’’ or er the study abroad program is required as all costs of the Department of Agriculture the ‘‘LEAF Act’’. part of the student’s degree program. associated with the production of tobacco; ‘‘(h) VERIFICATION OF SOCIAL SECURITY SEC. 1002. DEFINITIONS. (3) section 1023 for tobacco community eco- NUMBER.—The Secretary, in cooperation In this title: nomic development grants, but not to ex- with the Commissioner of Social Security, (1) PARTICIPATING TOBACCO PRODUCER.—The ceed— shall verify any social security number pro- term ‘‘participating tobacco producer’’ (A) $375,000,000 for each of fiscal years 1999 vided by a student to an eligible institution means a quota holder, quota lessee, or quota through 2008, less any amount required to be under subsection (a)(5)(B) and shall enforce tenant. paid under section 1022 for the fiscal year; the following conditions: (2) QUOTA HOLDER.—The term ‘‘quota hold- and ‘‘(1) PENDING VERIFICATION.—Except as pro- er’’ means an owner of a farm on January 1, (B) $450,000,000 for each of fiscal year 2009 vided in paragraphs (2) and (3), an institution 1998, for which a tobacco farm marketing through 2023, less any amount required to be shall not deny, reduce, delay, or terminate a quota or farm acreage allotment was estab- paid under section 1022 during the fiscal student’s eligibility for assistance under this lished under the Agricultural Adjustment year; subpart because social security number ver- Act of 1938 (7 U.S.C. 1281 et seq.). (4) section 1031 for assistance provided ification is pending. (3) QUOTA LESSEE.—The term ‘‘quota les- under the tobacco worker transition pro- ‘‘(2) DENIAL OR TERMINATION.—If there is a see’’ means— gram, but not to exceed $25,000,000 for any determination by the Secretary that the so- (A) a producer that owns a farm that pro- fiscal year; and cial security number provided to an eligible duced tobacco pursuant to a lease and trans- (5) subpart 9 of part A of title IV of the institution by a student is incorrect, the in- fer to that farm of all or part of a tobacco Higher Education Act of 1965 for farmer op- stitution shall deny or terminate the stu- farm marketing quota or farm acreage allot- portunity grants, but not to exceed— dent’s eligibility for any grant under this ment established under the Agricultural Ad- (A) $42,500,000 for each of the academic subpart until such time as the student pro- justment Act of 1938 (7 U.S.C. 1281 et seq.) for years 1999–2000 through 2003–2004; vides documented evidence of a social secu- any of the 1995, 1996, or 1997 crop years; or (B) $50,000,000 for each of the academic rity number that is determined by the insti- (B) a producer that rented land from a years 2004–2005 through 2008–2009; tution to be correct. farm operator to produce tobacco under a to- (C) $57,500,000 for each of the academic ‘‘(3) CONSTRUCTION.—Nothing in this sub- bacco farm marketing quota or farm acreage years 2009–2010 through 2013–2014; section shall be construed to permit the Sec- allotment established under the Agricultural (D) $65,000,000 for each of the academic retary to take any compliance, disallowance, Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) years 2014–2015 through 2018–2019; and penalty, or other regulatory action against— for any of the 1995, 1996, or 1997 crop years. (E) $72,500,000 for each of the academic ‘‘(A) any institution of higher education (4) QUOTA TENANT.—The term ‘‘quota ten- years 2019–2020 through 2023–2024. with respect to any error in a social security ant’’ means a producer that— SEC. 1013. BUDGETARY TREATMENT. number, unless the error was a result of (A) is the principal producer, as deter- This subtitle constitutes budget authority fraud on the part of the institution; or mined by the Secretary, of tobacco on a farm in advance of appropriations Acts and rep- ‘‘(B) any student with respect to any error where tobacco is produced pursuant to a to- resents the obligation of the Federal Govern- in a social security number, unless the error bacco farm marketing quota or farm acreage ment to provide payments to States and eli- was a result of fraud on the part of the stu- allotment established under the Agricultural gible persons in accordance with this title. dent.’’. Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) Subtitle B—Tobacco Market Transition Subtitle D—Immunity for any of the 1995, 1996, or 1997 crop years; Assistance SEC. 1041. GENERAL IMMUNITY FOR TOBACCO and SEC. 1021. PAYMENTS FOR LOST TOBACCO PRODUCERS AND TOBACCO WARE- (B) is not a quota holder or quota lessee. QUOTA. HOUSE OWNERS. (5) SECRETARY.—The term ‘‘Secretary’’ (a) IN GENERAL.—Beginning with the 1999 Notwithstanding any other provision of means— marketing year, the Secretary shall make this title, a participating tobacco producer, (A) in subtitles A and B, the Secretary of payments for lost tobacco quota to eligible tobacco-related growers association, or to- Agriculture; and quota holders, quota lessees, and quota ten- bacco warehouse owner or employee may not (B) in section 1031, the Secretary of Labor. ants as reimbursement for lost tobacco be subject to liability in any Federal or (6) TOBACCO PRODUCT IMPORTER.—The term quota. State court for any cause of action resulting ‘‘tobacco product importer’’ has the meaning (b) ELIGIBILITY.—To be eligible to receive from the failure of any tobacco product man- given the term ‘‘importer’’ in section 5702 of payments under this section, a quota holder, ufacturer, distributor, or retailer to comply the Internal Revenue Code of 1986. quota lessee, or quota tenant shall— with the National Tobacco Policy and Youth (7) TOBACCO PRODUCT MANUFACTURER.— (1) prepare and submit to the Secretary an Smoking Reduction Act. (A) IN GENERAL.—The term ‘‘tobacco prod- application at such time, in such manner, Subtitle E—Miscellaneous uct manufacturer’’ has the meaning given and containing such information as the Sec- SEC. 1051. ASSISTANCE FOR PRODUCERS EXPERI- the term ‘‘manufacturer of tobacco prod- retary may require, including information ENCING LOSSES OF FARM INCOME. ucts’’ in section 5702 of the Internal Revenue sufficient to make the demonstration re- (a) IN GENERAL.—Notwithstanding any Code of 1986. quired under paragraph (2); and other provision of this title, from amounts (B) EXCLUSION.—The term ‘‘tobacco prod- (2) demonstrate to the satisfaction of the made available to carry out this title, the uct manufacturer’’ does not include a person Secretary that, with respect to the 1997 mar- Secretary of Agriculture shall use that manufactures cigars or pipe tobacco. keting year— $250,000,000 for each of fiscal years 1999 (8) TOBACCO WAREHOUSE OWNER.—The term (A) the producer was a quota holder and re- through 2004 to establish a program to in- ‘‘tobacco warehouse owner’’ means a ware- alized income (or would have realized in- demnify eligible producers that have experi- houseman that participated in an auction come, as determined by the Secretary, but enced, or are experiencing, catastrophic market (as defined in the first section of the for a medical hardship or crop disaster dur- losses in farm income, as determined by the Tobacco Inspection Act (7 U.S.C. 511)) during ing the 1997 marketing year) from the pro- Secretary. the 1998 marketing year. duction of tobacco through— (b) GROSS INCOME AND PAYMENT LIMITA- (9) FLUE-CURED TOBACCO.—The term ‘‘flue- (i) the active production of tobacco; TIONS.—In carrying out this section, the Sec- cured tobacco’’ includes type 21 and type 37 (ii) the lease and transfer of tobacco quota retary shall, to the maximum extent prac- tobacco. to another farm; June 11, 1998 CONGRESSIONAL RECORD — SENATE S6245 (iii) the rental of all or part of the farm of under this subsection an amount that bears quent to any reallocation under subpara- the quota holder, including the right to the same ratio to the amounts made avail- graph (A) shall not exceed an amount deter- produce tobacco, to another tobacco pro- able as— mined by multiplying— ducer; or (A) the sum of all national marketing (I) the average county farm yield, as deter- (iv) the hiring of a quota tenant to produce quotas for all types of tobacco other than mined by the Secretary; and tobacco; flue-cured tobacco during the 1995 through (II) 50 percent of the acreage of cropland of (B) the producer was a quota lessee; or 1997 marketing years; bears to the farm owned by the quota lessee or quota (C) the producer was a quota tenant. (B) the sum of all national marketing tenant. (c) BASE QUOTA LEVEL.— quotas for all types of tobacco during the (C) ELIGIBILITY OF LESSEE OR TENANT FOR (1) IN GENERAL.—The Secretary shall deter- 1995 through 1997 marketing years. PAYMENTS.—If a farm marketing quota or mine, for each quota holder, quota lessee, (2) OPTION TO RELINQUISH QUOTA.— farm acreage allotment is reallocated to a and quota tenant, the base quota level for (A) IN GENERAL.—Each quota holder, for quota lessee or quota tenant under subpara- the 1995 through 1997 marketing years. types of tobacco other than flue-cured to- graph (A)— (2) QUOTA HOLDERS.—The base quota level bacco, shall be given the option to relinquish (i) the quota lessee or quota tenant shall for a quota holder shall be equal to the aver- the farm marketing quota or farm acreage not be eligible for any additional payments age tobacco farm marketing quota estab- allotment of the quota holder in exchange under paragraph (5) or (6) as a result of the lished for the farm owned by the quota hold- for a payment made under paragraph (3). reallocation; and er for the 1995 through 1997 marketing years. (B) NOTIFICATION.—A quota holder shall (ii) the base quota level for the quota les- (3) QUOTA LESSEES.—The base quota level give notification of the intention of the see or quota tenant shall not be increased as for a quota lessee shall be equal to— quota holder to exercise the option at such a result of the reallocation. (A) 50 percent of the average number of time and in such manner as the Secretary (D) REALLOCATION TO QUOTA HOLDERS WITH- pounds of tobacco quota established for the may require, but not later than January 15, IN SAME COUNTY OR STATE.— farm for the 1995 through 1997 marketing 1999. (i) IN GENERAL.—Except as provided in years— (3) PAYMENTS FOR LOST TOBACCO QUOTA TO clause (ii), if there was no quota lessee or (i) that was leased and transferred to a QUOTA HOLDERS EXERCISING OPTIONS TO RELIN- quota tenant for the farm marketing quota farm owned by the quota lessee; or QUISH QUOTA.— or farm acreage allotment for a type of to- (ii) that was rented to the quota lessee for (A) IN GENERAL.—Subject to subparagraph the right to produce the tobacco; less (E), for each of fiscal years 1999 through 2008, bacco, or if no quota lessee or quota tenant (B) 25 percent of the average number of the Secretary shall make annual payments exercises an option of having an allotment of pounds of tobacco quota described in sub- for lost tobacco quota to each quota holder the farm marketing quota or farm acreage paragraph (A) for which a quota tenant was that has relinquished the farm marketing allotment for a type of tobacco reallocated, the principal producer of the tobacco quota. quota or farm acreage allotment of the quota the Secretary shall reapportion the farm (4) QUOTA TENANTS.—The base quota level holder under paragraph (2). marketing quota or farm acreage allotment for a quota tenant shall be equal to the sum (B) AMOUNT.—The amount of a payment among the remaining quota holders for the of— made to a quota holder described in subpara- type of tobacco within the same county. (A) 50 percent of the average number of graph (A) for a marketing year shall equal (ii) CROSS-COUNTY LEASING.—In a State in which cross-county leasing is authorized pur- pounds of tobacco quota established for a 1⁄10 of the lifetime limitation established farm for the 1995 through 1997 marketing under subparagraph (E). suant to section 319(l) of the Agricultural years— (C) TIMING.—The Secretary shall begin Adjustment Act of 1938 (7 U.S.C. 1314e(l)), the (i) that was owned by a quota holder; and making annual payments under this para- Secretary shall reapportion the farm mar- (ii) for which the quota tenant was the graph for the marketing year in which the keting quota among the remaining quota principal producer of the tobacco on the farm marketing quota or farm acreage allot- holders for the type of tobacco within the farm; and ment is relinquished. same State. (B) 25 percent of the average number of (D) ADDITIONAL PAYMENTS.—The Secretary (iii) ELIGIBILITY OF QUOTA HOLDER FOR PAY- pounds of tobacco quota for the 1995 through may increase annual payments under this MENTS.—If a farm marketing quota is re- 1997 marketing years— paragraph in accordance with paragraph apportioned to a quota holder under this sub- (i)(I) that was leased and transferred to a (7)(E) to the extent that funding is available. paragraph— farm owned by the quota lessee; or (E) LIFETIME LIMITATION ON PAYMENTS.— (I) the quota holder shall not be eligible for (II) for which the rights to produce the to- The total amount of payments made under any additional payments under paragraph (5) bacco were rented to the quota lessee; and this paragraph to a quota holder shall not or (6) as a result of the reapportionment; and (ii) for which the quota tenant was the exceed the product obtained by multiplying (II) the base quota level for the quota hold- principal producer of the tobacco on the the base quota level for the quota holder by er shall not be increased as a result of the re- farm. $8 per pound. apportionment. (5) MARKETING QUOTAS OTHER THAN POUND- (4) REISSUANCE OF QUOTA.— (E) SPECIAL RULE FOR TENANT OF LEASED AGE QUOTAS.— (A) REALLOCATION TO LESSEE OR TENANT.— TOBACCO.—If a quota holder exercises an op- (A) IN GENERAL.—For each type of tobacco If a quota holder exercises an option to relin- tion to relinquish a tobacco farm marketing for which there is a marketing quota or al- quish a tobacco farm marketing quota or quota or farm acreage allotment under para- lotment (on an acreage basis), the base quota farm acreage allotment under paragraph (2), graph (2), the farm marketing quota or farm level for each quota holder, quota lessee, or a quota lessee or quota tenant that was the acreage allotment shall be divided evenly be- quota tenant shall be determined in accord- primary producer during the 1997 marketing tween, and the option of reallocating the ance with this subsection (based on a pound- year of tobacco pursuant to the farm mar- farm marketing quota or farm acreage allot- age conversion) by multiplying— keting quota or farm acreage allotment, as ment shall be offered in equal portions to, (i) the average tobacco farm marketing determined by the Secretary, shall be given the quota lessee and to the quota tenant, if— quota or allotment for the 1995 through 1997 the option of having an allotment of the (i) during the 1997 marketing year, the marketing years; and farm marketing quota or farm acreage allot- farm marketing quota or farm acreage allot- (ii) the average yield per acre for the farm ment reallocated to a farm owned by the ment was leased and transferred to a farm for the type of tobacco for the marketing quota lessee or quota tenant. owned by the quota lessee; and years. (B) CONDITIONS FOR REALLOCATION.— (ii) the quota tenant was the primary pro- (B) YIELDS NOT AVAILABLE.—If the average (i) TIMING.—A quota lessee or quota tenant ducer, as determined by the Secretary, of to- yield per acre is not available for a farm, the that is given the option of having an allot- bacco pursuant to the farm marketing quota Secretary shall calculate the base quota for ment of a farm marketing quota or farm or farm acreage allotment. the quota holder, quota lessee, or quota ten- acreage allotment reallocated to a farm (5) PAYMENTS FOR LOST TOBACCO QUOTA TO ant (based on a poundage conversion) by de- owned by the quota lessee or quota tenant QUOTA HOLDERS.— termining the amount equal to the product under subparagraph (A) shall have 1 year (A) IN GENERAL.—Except as otherwise pro- obtained by multiplying— from the date on which a farm marketing vided in this subsection, during any market- (i) the average tobacco farm marketing quota or farm acreage allotment is relin- ing year in which the national marketing quota or allotment for the 1995 through 1997 quished under paragraph (2) to exercise the quota for a type of tobacco is less than the marketing years; and option. average national marketing quota for the (ii) the average county yield per acre for (ii) LIMITATION ON ACREAGE ALLOTMENT.—In 1995 through 1997 marketing years, the Sec- the county in which the farm is located for the case of a farm acreage allotment, the retary shall make payments for lost tobacco the type of tobacco for the marketing years. acreage allotment determined for any farm quota to each quota holder, for types of to- (d) PAYMENTS FOR LOST TOBACCO QUOTA subsequent to any reallocation under sub- bacco other than flue-cured tobacco, that is FOR TYPES OF TOBACCO OTHER THAN FLUE- paragraph (A) shall not exceed 50 percent of eligible under subsection (b), and has not ex- CURED TOBACCO.— the acreage of cropland of the farm owned by ercised an option to relinquish a tobacco (1) ALLOCATION OF FUNDS.—Of the amounts the quota lessee or quota tenant. farm marketing quota or farm acreage allot- made available under section 1011(d)(1) for (iii) LIMITATION ON MARKETING QUOTA.—In ment under paragraph (2), in an amount that payments for lost tobacco quota, the Sec- the case of a farm marketing quota, the mar- is equal to the product obtained by multiply- retary shall make available for payments keting quota determined for any farm subse- ing— S6246 CONGRESSIONAL RECORD — SENATE June 11, 1998 (i) the number of pounds by which the marketing year and added to the payments (i) subject to subparagraph (D), for 3 con- basic farm marketing quota (or poundage for lost tobacco quota for the marketing secutive marketing years, the national mar- conversion) is less than the base quota level year. keting quota or national acreage allotment for the quota holder; and (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- for a type of tobacco is less than 50 percent (ii) $4 per pound. ERS EXERCISING OPTION TO RELINQUISH of the national marketing quota or national (B) POUNDAGE CONVERSION FOR MARKETING QUOTA.—If the amount made available under acreage allotment for the type of tobacco for QUOTAS OTHER THAN POUNDAGE QUOTAS.— paragraph (1) exceeds the sum of the the 1998 marketing year; or (i) IN GENERAL.—For each type of tobacco amounts determined under paragraphs (3), (ii) Congress repeals or makes ineffective, for which there is a marketing quota or al- (5), and (6) for a marketing year, the Sec- directly or indirectly, any provision of— lotment (on an acreage basis), the poundage retary shall distribute the amount of the ex- (I) section 316 of the Agricultural Adjust- conversion for each quota holder during a cess pro rata to quota holders that have ex- ment Act of 1938 (7 U.S.C. 1314b); marketing year shall be determined by mul- ercised an option to relinquish a tobacco (II) section 319 of the Agricultural Adjust- tiplying— farm marketing quota or farm acreage allot- ment Act of 1938 (7 U.S.C. 1314e); (I) the basic farm acreage allotment for ment under paragraph (2) by increasing the (III) section 106 of the Agricultural Act of the farm for the marketing year; and amount payable to each such holder under 1949 (7 U.S.C. 1445); (II) the average yield per acre for the farm paragraph (3). (IV) section 106A of the Agricultural Act of for the type of tobacco. (9) SUBSEQUENT SALE AND TRANSFER OF 1949 (7 U.S.C. 1445–1); or (ii) YIELD NOT AVAILABLE.—If the average QUOTA.—Effective beginning with the 1999 (V) section 106B of the Agricultural Act of yield per acre is not available for a farm, the marketing year, on the sale and transfer of a 1949 (7 U.S.C. 1445–2). Secretary shall calculate the poundage con- farm marketing quota or farm acreage allot- (C) AMOUNT.—The amount of the acceler- version for each quota holder during a mar- ment under section 316(g) or 319(g) of the Ag- ated payments made to each quota holder, keting year by multiplying— ricultural Adjustment Act of 1938 (7 U.S.C. quota lessee, and quota tenant under this (I) the basic farm acreage allotment for 1314b(g), 1314e(g))— subsection shall be equal to— the farm for the marketing year; and (A) the person that sold and transferred (i) the amount of the lifetime limitation (II) the average county yield per acre for the quota or allotment shall have— established for the quota holder, quota les- the county in which the farm is located for see, or quota tenant under paragraph (7); less the type of tobacco. (i) the base quota level attributable to the person reduced by the base quota level at- (ii) any payments for lost tobacco quota (6) PAYMENTS FOR LOST TOBACCO QUOTA TO tributable to the quota that is sold and received by the quota holder, quota lessee, or QUOTA LESSEES AND QUOTA TENANTS.—Except transferred; and quota tenant before the occurrence of any of as otherwise provided in this subsection, dur- the events described in subparagraph (B). ing any marketing year in which the na- (ii) the lifetime limitation on payments es- (D) REFERENDUM VOTE NOT A TRIGGERING tional marketing quota for a type of tobacco tablished under paragraph (7) attributable to the person reduced by the product obtained EVENT.—A referendum vote of producers for is less than the average national marketing any type of tobacco that results in the na- quota for the type of tobacco for the 1995 by multiplying— (I) the base quota level attributable to the tional marketing quota or national acreage through 1997 marketing years, the Secretary allotment not being in effect for the type of shall make payments for lost tobacco quota quota; and tobacco shall not be considered a triggering to each quota lessee and quota tenant, for (II) $8 per pound; and event under this paragraph. types of tobacco other than flue-cured to- (B) if the quota or allotment has never (13) BAN ON SUBSEQUENT SALE OR LEASING OF bacco, that is eligible under subsection (b) in been relinquished by a previous quota holder FARM MARKETING QUOTA OR FARM ACREAGE AL- an amount that is equal to the product ob- under paragraph (2), the person that acquired LOTMENT TO QUOTA HOLDERS EXERCISING OP- tained by multiplying— the quota shall have— TION TO RELINQUISH QUOTA.—No quota holder (A) the percentage by which the national (i) the base quota level attributable to the that exercises the option to relinquish a marketing quota for the type of tobacco is person increased by the base quota level at- farm marketing quota or farm acreage allot- less than the average national marketing tributable to the quota that is sold and ment for any type of tobacco under para- quota for the type of tobacco for the 1995 transferred; and graph (2) shall be eligible to acquire a farm through 1997 marketing years; (ii) the lifetime limitation on payments es- (B) the base quota level for the quota les- tablished under paragraph (7) attributable to marketing quota or farm acreage allotment see or quota tenant; and the person— for the type of tobacco, or to obtain the lease (C) $4 per pound. (I) increased by the product obtained by or transfer of a farm marketing quota or farm acreage allotment for the type of to- (7) LIFETIME LIMITATION ON PAYMENTS.—Ex- multiplying— cept as otherwise provided in this sub- (aa) the base quota level attributable to bacco, for a period of 25 crop years after the section, the total amount of payments made the quota; and date on which the quota or allotment was re- under this subsection to a quota holder, (bb) $8 per pound; but linquished. quota lessee, or quota tenant during the life- (II) decreased by any payments under para- (e) PAYMENTS FOR LOST TOBACCO QUOTA time of the quota holder, quota lessee, or graph (5) for lost tobacco quota previously FOR FLUE-CURED TOBACCO.— quota tenant shall not exceed the product made that are attributable to the quota that (1) ALLOCATION OF FUNDS.—Of the amounts obtained by multiplying— is sold and transferred. made available under section 1011(d)(1) for (A) the base quota level for the quota hold- (10) SALE OR TRANSFER OF FARM.—On the payments for lost tobacco quota, the Sec- er, quota lessee, or quota tenant; and sale or transfer of ownership of a farm that retary shall make available for payments (B) $8 per pound. is owned by a quota holder, the base quota under this subsection an amount that bears (8) LIMITATIONS ON AGGREGATE ANNUAL PAY- level established under subsection (c), the the same ratio to the amounts made avail- MENTS.— right to payments under paragraph (5), and able as— (A) IN GENERAL.—Except as otherwise pro- the lifetime limitation on payments estab- (A) the sum of all national marketing vided in this paragraph, the total amount lished under paragraph (7) shall transfer to quotas for flue-cured tobacco during the 1995 payable under this subsection for any mar- the new owner of the farm to the same ex- through 1997 marketing years; bears to keting year shall not exceed the amount tent and in the same manner as those provi- (B) the sum of all national marketing made available under paragraph (1). sions applied to the previous quota holder. quotas for all types of tobacco during the (B) ACCELERATED PAYMENTS.—Paragraph (11) DEATH OF QUOTA LESSEE OR QUOTA TEN- 1995 through 1997 marketing years. (1) shall not apply if accelerated payments ANT.—If a quota lessee or quota tenant that (2) RELINQUISHMENT OF QUOTA.— for lost tobacco quota are made in accord- is entitled to payments under this subsection (A) IN GENERAL.—Each quota holder of flue- ance with paragraph (12). dies and is survived by a spouse or 1 or more cured tobacco shall relinquish the farm mar- (C) REDUCTIONS.—If the sum of the dependents, the right to receive the pay- keting quota or farm acreage allotment in amounts determined under paragraphs (3), ments shall transfer to the surviving spouse exchange for a payment made under para- (5), and (6) for a marketing year exceeds the or, if there is no surviving spouse, to the sur- graph (3) due to the transition from farm amount made available under paragraph (1), viving dependents in equal shares. marketing quotas as provided under section the Secretary shall make a pro rata reduc- (12) ACCELERATION OF PAYMENTS.— 317 of the Agricultural Adjustment Act of tion in the amounts payable under para- (A) IN GENERAL.—On the occurrence of any 1938 for flue-cured tobacco to individual to- graphs (5) and (6) to quota holders, quota les- of the events described in subparagraph (B), bacco production permits as provided under sees, and quota tenants under this sub- the Secretary shall make an accelerated section 317A of the Agricultural Adjustment section to ensure that the total amount of lump sum payment for lost tobacco quota as Act of 1938 for flue-cured tobacco. payments for lost tobacco quota does not ex- established under paragraphs (5) and (6) to (B) NOTIFICATION.—The Secretary shall no- ceed the amount made available under para- each quota holder, quota lessee, and quota tify the quota holders of the relinquishment graph (1). tenant for any affected type of tobacco in ac- of their quota or allotment at such time and (D) ROLLOVER OF PAYMENTS FOR LOST TO- cordance with subparagraph (C). in such manner as the Secretary may re- BACCO QUOTA.—Subject to subparagraph (A), (B) TRIGGERING EVENTS.—The Secretary quire, but not later than November 15, 1998. if the Secretary makes a reduction in ac- shall make accelerated payments under sub- (3) PAYMENTS FOR LOST FLUE-CURED TO- cordance with subparagraph (C), the amount paragraph (A) if after the date of enactment BACCO QUOTA TO QUOTA HOLDERS THAT RELIN- of the reduction shall be applied to the next of this Act— QUISH QUOTA.— June 11, 1998 CONGRESSIONAL RECORD — SENATE S6247

(A) IN GENERAL.—For each of fiscal years time of the quota holder, quota lessee, or (V) section 106B of the Agricultural Act of 1999 through 2008, the Secretary shall make quota tenant shall not exceed the product 1949 (7 U.S.C. 1445–2); or annual payments for lost flue-cured tobacco obtained by multiplying— (VI) section 317A of the Agricultural Ad- to each quota holder that has relinquished (A) the base quota level for the quota hold- justment Act of 1938. the farm marketing quota or farm acreage er, quota lessee, or quota tenant; and (C) AMOUNT.—The amount of the acceler- allotment of the quota holder under para- (B) $8 per pound. ated payments made to each quota holder, graph (2). (7) LIMITATIONS ON AGGREGATE ANNUAL PAY- quota lessee, and quota tenant under this (B) AMOUNT.—The amount of a payment MENTS.— subsection shall be equal to— made to a quota holder described in subpara- (A) IN GENERAL.—Except as otherwise pro- (i) the amount of the lifetime limitation graph (A) for a marketing year shall equal vided in this paragraph, the total amount established for the quota holder, quota les- 1⁄10 of the lifetime limitation established payable under this subsection for any mar- see, or quota tenant under paragraph (6); less under paragraph (6). keting year shall not exceed the amount (ii) any payments for lost flue-cured to- (C) TIMING.—The Secretary shall begin made available under paragraph (1). bacco quota received by the quota holder, making annual payments under this para- (B) ACCELERATED PAYMENTS.—Paragraph quota lessee, or quota tenant before the oc- graph for the marketing year in which the (1) shall not apply if accelerated payments currence of any of the events described in farm marketing quota or farm acreage allot- for lost flue-cured tobacco quota are made in subparagraph (B). ment is relinquished. accordance with paragraph (9). (D) REFERENDUM VOTE NOT A TRIGGERING (D) ADDITIONAL PAYMENTS.—The Secretary (C) REDUCTIONS.—If the sum of the EVENT.—A referendum vote of producers for may increase annual payments under this amounts determined under paragraphs (3), flue-cured tobacco that results in the na- paragraph in accordance with paragraph (4), and (5) for a marketing year exceeds the tional marketing quota or national acreage (7)(E) to the extent that funding is available. amount made available under paragraph (1), allotment not being in effect for flue-cured (4) PAYMENTS FOR LOST FLUE-CURED TO- the Secretary shall make a pro rata reduc- tobacco shall not be considered a triggering BACCO QUOTA TO QUOTA LESSEES AND QUOTA tion in the amounts payable under paragraph event under this paragraph. TENANTS THAT HAVE NOT RELINQUISHED PER- (4) to quota lessees and quota tenants under SEC. 1022. INDUSTRY PAYMENTS FOR ALL DE- MITS.— this subsection to ensure that the total PARTMENT COSTS ASSOCIATED (A) IN GENERAL.—Except as otherwise pro- amount of payments for lost flue-cured to- WITH TOBACCO PRODUCTION. vided in this subsection, during any market- (a) IN GENERAL.—The Secretary shall use bacco quota does not exceed the amount ing year in which the national marketing such amounts remaining unspent and obli- made available under paragraph (1). quota for flue-cured tobacco is less than the gated at the end of each fiscal year to reim- (D) ROLLOVER OF PAYMENTS FOR LOST FLUE- average national marketing quota for the burse the Secretary for— CURED TOBACCO QUOTA.—Subject to subpara- 1995 through 1997 marketing years, the Sec- (1) costs associated with the administra- graph (A), if the Secretary makes a reduc- retary shall make payments for lost tobacco tion of programs established under this title tion in accordance with subparagraph (C), quota to each quota lessee or quota tenant and amendments made by this title; the amount of the reduction shall be applied that— (2) costs associated with the administra- to the next marketing year and added to the (i) is eligible under subsection (b); tion of the tobacco quota and price support payments for lost flue-cured tobacco quota (ii) has been issued an individual tobacco programs administered by the Secretary; for the marketing year. production permit under section 317A(b) of (3) costs to the Federal Government of car- (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- the Agricultural Adjustment Act of 1938; and rying out crop insurance programs for to- ERS EXERCISING OPTION TO RELINQUISH QUOTAS (iii) has not exercised an option to relin- bacco; OR PERMITS, OR TO QUOTA LESSEES OR QUOTA quish the permit. (4) costs associated with all agricultural TENANTS RELINQUISHING PERMITS.—If the (B) AMOUNT.—The amount of a payment research, extension, or education activities amount made available under paragraph (1) made to a quota lessee or quota tenant de- associated with tobacco; exceeds the sum of the amounts determined scribed in subparagraph (A) for a marketing (5) costs associated with the administra- under paragraphs (3), (4), and (5) for a mar- year shall be equal to the product obtained tion of loan association and cooperative pro- keting year, the Secretary shall distribute by multiplying— grams for tobacco producers, as approved by the amount of the excess pro rata to quota (i) the number of pounds by which the indi- the Secretary; and holders by increasing the amount payable to vidual marketing limitation established for (6) any other costs incurred by the Depart- each such holder under paragraphs (3) and the permit is less than twice the base quota ment of Agriculture associated with the pro- (5). level for the quota lessee or quota tenant; duction of tobacco. (8) DEATH OF QUOTA HOLDER, QUOTA LESSEE, and (b) LIMITATIONS.—Amounts made available (ii) $2 per pound. OR QUOTA TENANT.—If a quota holder, quota under subsection (a) may not be used— (5) PAYMENTS FOR LOST FLUE-CURED TO- lessee or quota tenant that is entitled to (1) to provide direct benefits to quota hold- BACCO QUOTA TO QUOTA LESSEES AND QUOTA payments under paragraph (4) or (5) dies and ers, quota lessees, or quota tenants; or TENANTS THAT HAVE RELINQUISHED PERMITS.— is survived by a spouse or 1 or more descend- (2) in a manner that results in a decrease, (A) IN GENERAL.—For each of fiscal years ants, the right to receive the payments shall or an increase relative to other crops, in the 1999 through 2008, the Secretary shall make transfer to the surviving spouse or, if there amount of the crop insurance premiums as- annual payments for lost flue-cured tobacco is no surviving spouse, to the surviving de- sessed to participating tobacco producers quota to each quota lessee and quota tenant scendants in equal shares. under the Federal Crop Insurance Act (7 that has relinquished an individual tobacco (9) ACCELERATION OF PAYMENTS.— U.S.C. 1501 et seq.). production permit under section 317A(b)(5) of (A) IN GENERAL.—On the occurrence of any (c) DETERMINATIONS.—Not later than Sep- the Agricultural Adjustment Act of 1938. of the events described in subparagraph (B), tember 30, 1998, and each fiscal year there- (B) AMOUNT.—The amount of a payment the Secretary shall make an accelerated after, the Secretary shall determine— made to a quota lessee or quota tenant de- lump sum payment for lost flue-cured to- (1) the amount of costs described in sub- scribed in subparagraph (A) for a marketing bacco quota as established under paragraphs section (a); and year shall be equal to 1⁄10 of the lifetime limi- (3), (4), and (5) to each quota holder, quota (2) the amount that will be provided under tation established under paragraph (6). lessee, and quota tenant for flue-cured to- this section as reimbursement for the costs. (C) TIMING.—The Secretary shall begin bacco in accordance with subparagraph (C). SEC. 1023. TOBACCO COMMUNITY ECONOMIC DE- making annual payments under this para- (B) TRIGGERING EVENTS.—The Secretary VELOPMENT GRANTS. graph for the marketing year in which the shall make accelerated payments under sub- (a) AUTHORITY.—The Secretary shall make individual tobacco production permit is re- paragraph (A) if after the date of enactment grants to tobacco-growing States in accord- linquished. of this Act— ance with this section to enable the States (D) ADDITIONAL PAYMENTS.—The Secretary (i) subject to subparagraph (D), for 3 con- to carry out economic development initia- may increase annual payments under this secutive marketing years, the national mar- tives in tobacco-growing communities. paragraph in accordance with paragraph keting quota or national acreage allotment (b) APPLICATION.—To be eligible to receive (7)(E) to the extent that funding is available. for flue-cured tobacco is less than 50 percent payments under this section, a State shall (E) PROHIBITION AGAINST PERMIT EXPAN- of the national marketing quota or national prepare and submit to the Secretary an ap- SION.—A quota lessee or quota tenant that acreage allotment for flue-cured tobacco for plication at such time, in such manner, and receives a payment under this paragraph the 1998 marketing year; or containing such information as the Sec- shall be ineligible to receive any new or in- (ii) Congress repeals or makes ineffective, retary may require, including— creased tobacco production permit from the directly or indirectly, any provision of— (1) a description of the activities that the county production pool established under (I) section 316 of the Agricultural Adjust- State will carry out using amounts received section 317A(b)(8) of the Agricultural Adjust- ment Act of 1938 (7 U.S.C. 1314b); under the grant; ment Act of 1938. (II) section 319 of the Agricultural Adjust- (2) a designation of an appropriate State (6) LIFETIME LIMITATION ON PAYMENTS.—Ex- ment Act of 1938 (7 U.S.C. 1314e); agency to administer amounts received cept as otherwise provided in this sub- (III) section 106 of the Agricultural Act of under the grant; and section, the total amount of payments made 1949 (7 U.S.C. 1445); (3) a description of the steps to be taken to under this subsection to a quota holder, (IV) section 106A of the Agricultural Act of ensure that the funds are distributed in ac- quota lessee, or quota tenant during the life- 1949 (7 U.S.C. 1445–1); cordance with subsection (e). S6248 CONGRESSIONAL RECORD — SENATE June 11, 1998

(c) AMOUNT OF GRANT.— (2) TOBACCO-GROWING COUNTIES.—Assistance (2) REDUCTION OF GRANT AMOUNT.—If a (1) IN GENERAL.—From the amounts avail- may be provided by a State under this sec- State does not provide an assurance de- able to carry out this section for a fiscal tion only to assist a county in the State that scribed in paragraph (1), the Secretary shall year, the Secretary shall allot to each State has been determined by the Secretary to reduce the amount of the grant determined an amount that bears the same ratio to the have in excess of $100,000 in income derived under subsection (c) by an amount equal to amounts available as the total farm income from the production of tobacco during 1 or the amount by which the amount of funds of the State derived from the production of more of the 1995 through 1997 marketing expended by the State and counties for the tobacco during the 1995 through 1997 market- years. For purposes of this section, the term activities is less than 90 percent of the ing years (as determined under paragraph ‘‘tobacco-growing county’’ includes a politi- amount of funds expended by the State and (2)) bears to the total farm income of all cal subdivision surrounded within a State by counties for the activities for the preceding States derived from the production of to- a county that has been determined by the fiscal year, as determined by the Secretary. bacco during the 1995 through 1997 marketing Secretary to have in excess of $100,000 in in- (3) FEDERAL FUNDS.—For purposes of this years. come derived from the production of tobacco subsection, the amount of funds expended by (2) TOBACCO INCOME.—For the 1995 through during 1 or more of the 1995 through 1997 a State or county shall not include any 1997 marketing years, the Secretary shall de- marketing years. amounts made available by the Federal Gov- termine the amount of farm income derived (3) DISTRIBUTION.— ernment. from the production of tobacco in each State (A) ECONOMIC DEVELOPMENT ACTIVITIES.— SEC. 1024. FLUE-CURED TOBACCO PRODUCTION and in all States. Not less than 20 percent of the amounts re- PERMITS. (d) PAYMENTS.— ceived by a State under this section shall be The Agricultural Adjustment Act of 1938 is (1) IN GENERAL.—A State that has an appli- used to carry out— amended by inserting after section 317 (7 cation approved by the Secretary under sub- (i) economic development activities de- U.S.C. 1314c) the following: section (b) shall be entitled to a payment scribed in subparagraph (E) or (F) of para- graph (1); or ‘‘SEC. 317A. FLUE-CURED TOBACCO PRODUCTION under this section in an amount that is equal PERMITS. (ii) agriculture-based rural development to its allotment under subsection (c). ‘‘(a) DEFINITIONS.—In this section: activities described in paragraph (1)(G). (2) FORM OF PAYMENTS.—The Secretary ‘‘(1) INDIVIDUAL ACREAGE LIMITATION.—The ECHNICAL ASSISTANCE ACTIVITIES.—Not may make payments under this section to a (B) T less than 4 percent of the amounts received term ‘individual acreage limitation’ means State in installments, and in advance or by by a State under this section shall be used to the number of acres of flue-cured tobacco way of reimbursement, with necessary ad- carry out technical assistance activities de- that may be planted by the holder of a per- justments on account of overpayments or scribed in paragraph (1)(G). mit during a marketing year, calculated— underpayments, as the Secretary may deter- ‘‘(A) prior to— (C) TOBACCO WAREHOUSE OWNER INITIA- mine. TIVES.—Not less than 6 percent of the ‘‘(i) any increase or decrease in the number (3) REALLOTMENTS.—Any portion of the al- amounts received by a State under this sec- due to undermarketings or overmarketings; lotment of a State under subsection (c) that tion during each of fiscal years 1999 through and the Secretary determines will not be used to 2008 shall be used to carry out initiatives de- ‘‘(ii) any reduction under subsection (i); carry out this section in accordance with an scribed in paragraph (1)(H). and approved State application required under (D) TOBACCO-GROWING COUNTIES.—To be eli- ‘‘(B) in a manner that ensures that— subsection (b), shall be reallotted by the Sec- gible to receive payments under this section, ‘‘(i) the total of all individual acreage limi- retary to other States in proportion to the a State shall demonstrate to the Secretary tations is equal to the national acreage al- original allotments to the other States. that funding will be provided, during each 5- lotment, less the reserve provided under sub- (e) USE AND DISTRIBUTION OF FUNDS.— year period for which funding is provided section (h); and (1) IN GENERAL.—Amounts received by a under this section, for activities in each ‘‘(ii) the individual acreage limitation for a State under this section shall be used to county in the State that has been deter- marketing year bears the same ratio to the carry out economic development activities, mined under paragraph (2) to have in excess individual acreage limitation for the pre- including— of $100,000 in income derived from the pro- vious marketing year as the ratio that the (A) rural business enterprise activities de- duction of tobacco, in amounts that are at national acreage allotment for the market- scribed in subsections (c) and (e) of section least equal to the product obtained by mul- ing year bears to the national acreage allot- 310B of the Consolidated Farm and Rural De- tiplying— ment for the previous marketing year, sub- velopment Act (7 U.S.C. 1932); (i) the ratio that the tobacco production ject to adjustments by the Secretary to ac- (B) down payment loan assistance pro- income in the county determined under para- count for any reserve provided under sub- grams that are similar to the program de- graph (2) bears to the total tobacco produc- section (h). scribed in section 310E of the Consolidated tion income for the State determined under ‘‘(2) INDIVIDUAL MARKETING LIMITATION.— Farm and Rural Development Act (7 U.S.C. subsection (c); and The term ‘individual marketing limitation’ 1935); (ii) 50 percent of the total amounts re- means the number of pounds of flue-cured to- (C) activities designed to help create pro- ceived by a State under this section during bacco that may be marketed by the holder of ductive farm or off-farm employment in the 5-year period. a permit during a marketing year, cal- rural areas to provide a more viable eco- (f) PREFERENCES IN HIRING.—A State may culated— nomic base and enhance opportunities for require recipients of funds under this section ‘‘(A) prior to— improved incomes, living standards, and con- to provide a preference in employment to— ‘‘(i) any increase or decrease in the number tributions by rural individuals to the eco- (1) an individual who— due to undermarketings or overmarketings; nomic and social development of tobacco (A) during the 1998 calendar year, was em- and communities; ployed in the manufacture, processing, or ‘‘(ii) any reduction under subsection (i); (D) activities that expand existing infra- warehousing of tobacco or tobacco products, and structure, facilities, and services to capital- or resided, in a county described in sub- ‘‘(B) in a manner that ensures that— ize on opportunities to diversify economies section (e)(2); and ‘‘(i) the total of all individual marketing in tobacco communities and that support the (B) is eligible for assistance under the to- limitations is equal to the national market- development of new industries or commer- bacco worker transition program established ing quota, less the reserve provided under cial ventures; under section 1031; or subsection (h); and (E) activities by agricultural organizations (2) an individual who— ‘‘(ii) the individual marketing limitation that provide assistance directly to partici- (A) during the 1998 marketing year, carried for a marketing year is obtained by mul- pating tobacco producers to assist in devel- out tobacco quota or relevant tobacco pro- tiplying the individual acreage limitation by oping other agricultural activities that sup- duction activities in a county described in the permit yield, prior to any adjustment for plement tobacco-producing activities; subsection (e)(2); undermarketings or overmarketings. (F) initiatives designed to create or expand (B) is eligible for a farmer opportunity ‘‘(3) INDIVIDUAL TOBACCO PRODUCTION PER- locally owned value-added processing and grant under subpart 9 of part A of title IV of MIT.—The term ‘individual tobacco produc- marketing operations in tobacco commu- the Higher Education Act of 1965; and tion permit’ means a permit issued by the nities; (C) has successfully completed a course of Secretary to a person authorizing the pro- (G) technical assistance activities by per- study at an institution of higher education. duction of flue-cured tobacco for any mar- sons to support farmer-owned enterprises, or (g) MAINTENANCE OF EFFORT.— keting year during which this section is ef- agriculture-based rural development enter- (1) IN GENERAL.—Subject to paragraph (2), a fective. prises, of the type described in section 252 or State shall provide an assurance to the Sec- ‘‘(4) NATIONAL ACREAGE ALLOTMENT.—The 253 of the Trade Act of 1974 (19 U.S.C. 2342, retary that the amount of funds expended by term ‘national acreage allotment’ means the 2343); and the State and all counties in the State de- quantity determined by dividing— (H) initiatives designed to partially com- scribed in subsection (e)(2) for any activities ‘‘(A) the national marketing quota; by pensate tobacco warehouse owners for lost funded under this section for a fiscal year is ‘‘(B) the national average yield goal. revenues and assist the tobacco warehouse not less than 90 percent of the amount of ‘‘(5) NATIONAL AVERAGE YIELD GOAL.—The owners in establishing successful business funds expended by the State and counties for term ‘national average yield goal’ means the enterprises. the activities for the preceding fiscal year. national average yield for flue-cured tobacco June 11, 1998 CONGRESSIONAL RECORD — SENATE S6249

during the 5 marketing years immediately ‘‘(D) INDIVIDUAL MARKETING LIMITATION FOR the primary producer, as determined by the preceding the marketing year for which the 1999 MARKETING YEAR.—In establishing the in- Secretary, of flue-cured tobacco pursuant to determination is being made. dividual marketing limitation for the 1999 the farm marketing quota or farm acreage ‘‘(6) NATIONAL MARKETING QUOTA.—For the marketing year under this section, the farm allotment, the farm marketing quota or 1999 and each subsequent crop of flue-cured marketing quota that was allotted to a farm farm acreage allotment shall be divided pro- tobacco, the term ‘national marketing owned by the quota holder for the 1997 mar- portionately between the quota lessee and quota’ for a marketing year means the quan- keting year shall be considered the individ- quota tenant for purposes of issuing individ- tity of flue-cured tobacco, as determined by ual marketing limitation for the previous ual tobacco production permits under this the Secretary, that is not more than 103 per- marketing year. paragraph. cent nor less than 97 percent of the total of— ‘‘(3) QUOTA HOLDERS THAT WERE NOT PRIN- ‘‘(5) OPTION OF QUOTA LESSEE OR QUOTA TEN- ‘‘(A) the aggregate of the quantities of CIPAL PRODUCERS.— ANT TO RELINQUISH PERMIT.— flue-cured tobacco that domestic manufac- ‘‘(A) IN GENERAL.—Except as provided in ‘‘(A) IN GENERAL.—Each quota lessee or turers of cigarettes estimate that the manu- subparagraph (B), on approval through a ref- quota tenant that is issued an individual to- facturers intend to purchase on the United erendum under subsection (c)— bacco production permit under paragraph (4) States auction markets or from producers ‘‘(i) each person that was a quota holder shall be given the option of relinquishing the during the marketing year, as compiled and under section 317 but that was not a prin- permit in exchange for payments made under determined under section 320A; cipal producer of flue-cured tobacco during section 1021(e)(5) of the LEAF Act. the 1997 marketing year, as determined by ‘‘(B) the average annual quantity of flue- ‘‘(B) NOTIFICATION.—A quota lessee or the Secretary, shall not be eligible to own a cured tobacco exported from the United quota tenant that is issued an individual to- permit; and States during the 3 marketing years imme- bacco production permit shall give notifica- ‘‘(ii) the Secretary shall not issue any per- diately preceding the marketing year for tion of the intention to exercise the option mit during the 25-year period beginning on which the determination is being made; and at such time and in such manner as the Sec- the date of enactment of this Act to any per- ‘‘(C) the quantity, if any, of flue-cured to- retary may require, but not later than 45 son that was a quota holder and was not the bacco that the Secretary, in the discretion of days after the permit is issued. principal producer of flue-cured tobacco dur- the Secretary, determines is necessary to in- ‘‘(C) REALLOCATION OF PERMIT.—The Sec- ing the 1997 marketing year. crease or decrease the inventory of the pro- retary shall add the authority to produce ‘‘(B) MEDICAL HARDSHIPS AND CROP DISAS- ducer-owned cooperative marketing associa- flue-cured tobacco under the individual to- TERS.—Subparagraph (A) shall not apply to a tion that has entered into a loan agreement bacco production permit relinquished under with the Commodity Credit Corporation to person that would have been the principal producer of flue-cured tobacco during the this paragraph to the county production pool make price support available to producers of established under paragraph (8) for realloca- flue-cured tobacco to establish or maintain 1997 marketing year but for a medical hard- ship or crop disaster that occurred during tion by the appropriate county committee. the inventory at the reserve stock level for ‘‘(6) ACTIVE PRODUCER REQUIREMENT.— flue-cured tobacco. the 1997 marketing year. ‘‘(C) ADMINISTRATION.—The Secretary shall ‘‘(A) REQUIREMENT FOR SHARING RISK.—No ‘‘(7) PERMIT YIELD.—The term ‘permit individual tobacco production permit shall yield’ means the yield of tobacco per acre for issue regulations— ‘‘(i) defining the term ‘person’ for the pur- be issued to, or maintained by, a person that an individual tobacco production permit pose of this paragraph; and does not fully share in the risk of producing holder that is— ‘‘(ii) prescribing such rules as the Sec- a crop of flue-cured tobacco. ‘‘(A) based on a preliminary permit yield retary determines are necessary to ensure a ‘‘(B) CRITERIA FOR SHARING RISK.—For pur- that is equal to the average yield during the fair and reasonable application of the prohi- poses of this paragraph, a person shall be 5 marketing years immediately preceding bition established under this paragraph. considered to have fully shared in the risk of the marketing year for which the determina- ‘‘(4) ISSUANCE OF PERMITS TO PRINCIPAL production of a crop if— tion is made in the county where the holder PRODUCERS OF FLUE-CURED TOBACCO.— ‘‘(i) the investment of the person in the of the permit is authorized to plant flue- ‘‘(A) IN GENERAL.—By January 15, 1999, production of the crop is not less than 100 cured tobacco, as determined by the Sec- each individual quota lessee or quota tenant percent of the costs of production associated retary, on the basis of actual yields of farms (as defined in section 1002 of the LEAF Act) with the crop; in the county; and that was the principal producer of flue-cured ‘‘(ii) the amount of the person’s return on ‘‘(B) adjusted by a weighted national yield tobacco during the 1997 marketing year, as the investment is dependent solely on the factor calculated by— determined by the Secretary, shall be issued sale price of the crop; and ‘‘(i) multiplying each preliminary permit an individual tobacco production permit ‘‘(iii) the person may not receive any of the yield by the individual acreage limitation, under this section. return before the sale of the crop. prior to adjustments for overmarketings, ‘‘(B) INDIVIDUAL ACREAGE LIMITATIONS.—In ‘‘(C) PERSONS NOT SHARING RISK.— undermarketings, or reductions required establishing the individual acreage limita- ‘‘(i) FORFEITURE.—Any person that fails to under subsection (i); and tion for the 1999 marketing year under this fully share in the risks of production under ‘‘(ii) dividing the sum of the products section, the farm acreage allotment that was this paragraph shall forfeit an individual to- under clause (i) for all flue-cured individual allotted to a farm owned by a quota holder bacco production permit if, after notice and tobacco production permit holders by the na- for whom the quota lessee or quota tenant opportunity for a hearing, the appropriate tional acreage allotment. was the principal producer of flue-cured to- county committee determines that the con- ‘‘(b) INITIAL ISSUANCE OF PERMITS.— bacco during the 1997 marketing year shall ditions for forfeiture exist. ‘‘(1) TERMINATION OF FLUE-CURED MARKET- be considered the individual acreage limita- ‘‘(ii) REALLOCATION.—The Secretary shall ING QUOTAS.—On the date of enactment of the tion for the previous marketing year. add the authority to produce flue-cured to- National Tobacco Policy and Youth Smoking ‘‘(C) INDIVIDUAL MARKETING LIMITATIONS.— bacco under the individual tobacco produc- Reduction Act, farm marketing quotas as In establishing the individual marketing tion permit forfeited under this subpara- provided under section 317 shall no longer be limitation for the 1999 marketing year under graph to the county production pool estab- in effect for flue-cured tobacco. this section, the individual marketing limi- lished under paragraph (8) for reallocation by ‘‘(2) ISSUANCE OF PERMITS TO QUOTA HOLD- tation for the previous year for an individual the appropriate county committee. ERS THAT WERE PRINCIPAL PRODUCERS.— described in this paragraph shall be cal- ‘‘(D) NOTICE.—Notice of any determination ‘‘(A) IN GENERAL.—By January 15, 1999, culated by multiplying— made by a county committee under subpara- each individual quota holder under section ‘‘(i) the farm marketing quota that was al- graph (C) shall be mailed, as soon as prac- 317 that was a principal producer of flue- lotted to a farm owned by a quota holder for ticable, to the person involved. cured tobacco during the 1998 marketing whom the quota lessee or quota holder was ‘‘(E) REVIEW.—If the person is dissatisfied year, as determined by the Secretary, shall the principal producer of flue-cured tobacco with the determination, the person may re- be issued an individual tobacco production during the 1997 marketing year, by quest, not later than 15 days after notice of permit under this section. ‘‘(ii) the ratio that— the determination is received, a review of ‘‘(B) NOTIFICATION.—The Secretary shall ‘‘(I) the sum of all flue-cured tobacco farm the determination by a local review commit- notify the holder of each permit of the indi- marketing quotas for the 1997 marketing tee under the procedures established under vidual acreage limitation and the individual year prior to adjusting for undermarketing section 363 for farm marketing quotas. marketing limitation applicable to the hold- and overmarketing; bears to ‘‘(7) COUNTY OF ORIGIN REQUIREMENT.—For er for each marketing year. ‘‘(II) the sum of all flue-cured tobacco farm the 1999 and each subsequent crop of flue- ‘‘(C) INDIVIDUAL ACREAGE LIMITATION FOR marketing quotas for the 1998 marketing cured tobacco, all tobacco produced pursuant 1999 MARKETING YEAR.—In establishing the in- year, after adjusting for undermarketing and to an individual tobacco production permit dividual acreage limitation for the 1999 mar- overmarketing. shall be produced in the same county in keting year under this section, the farm ‘‘(D) SPECIAL RULE FOR TENANT OF LEASED which was produced the tobacco produced acreage allotment that was allotted to a FLUE-CURED TOBACCO.—If the farm marketing during the 1997 marketing year pursuant to farm owned by the quota holder for the 1997 quota or farm acreage allotment of a quota the farm marketing quota or farm acreage marketing year shall be considered the indi- holder was produced pursuant to an agree- allotment on which the individual tobacco vidual acreage limitation for the previous ment under which a quota lessee rented land production permit is based. marketing year. from a quota holder and a quota tenant was ‘‘(8) COUNTY PRODUCTION POOL.— S6250 CONGRESSIONAL RECORD — SENATE June 11, 1998

‘‘(A) IN GENERAL.—The authority to been made effective for flue-cured tobacco on tional marketing quota in a quantity equal produce flue-cured tobacco under an individ- an acreage-poundage basis pursuant to this to not more than 1 percent of the national ual tobacco production permit that is for- subsection, the Secretary shall, not later marketing quota to be available for— feited, relinquished, or surrendered within a than December 15 of any future marketing ‘‘(A) making corrections of errors in indi- county may be reallocated by the appro- year, announce a national marketing quota vidual acreage limitations and individual priate county committee to tobacco produc- for that type of tobacco for the next 3 suc- marketing limitations; ers located in the same county that apply to ceeding marketing years if the marketing ‘‘(B) adjusting inequities; and the committee to produce flue-cured tobacco year is the last year of 3 consecutive years ‘‘(C) establishing individual tobacco pro- under the authority. for which individual tobacco production per- duction permits for new tobacco producers ‘‘(B) PRIORITY.—In reallocating individual mits previously proclaimed will be in effect. (except that not less than two-thirds of the tobacco production permits under this para- ‘‘(d) ANNUAL ANNOUNCEMENT OF NATIONAL reserve shall be for establishing such permits graph, a county committee shall provide a MARKETING QUOTA.—The Secretary shall de- for new tobacco producers). priority to— termine and announce the national market- ‘‘(2) ELIGIBLE PERSONS.—To be eligible for a ‘‘(i) an active tobacco producer that con- ing quota, national acreage allotment, and new individual tobacco production permit, a trols the authority to produce a quantity of national average yield goal for the second producer must not have been the principal flue-cured tobacco under an individual to- and third marketing years of any 3-year pe- producer of tobacco during the immediately bacco production permit that is equal to or riod for which individual tobacco production preceding 5 years. less than the average number of pounds of permits are in effect on or before the Decem- ‘‘(3) APPORTIONMENT FOR NEW PRODUCERS.— flue-cured tobacco that was produced by the ber 15 immediately preceding the beginning The part of the reserve held for apportion- producer during each of the 1995 through 1997 of the marketing year to which the quota, ment to new individual tobacco producers marketing years, as determined by the Sec- allotment, and goal apply. shall be allotted on the basis of— retary; and ‘‘(e) ANNUAL ANNOUNCEMENT OF INDIVIDUAL ‘‘(A) land, labor, and equipment available ‘‘(ii) a new tobacco producer. TOBACCO PRODUCTION PERMITS.—If a national for the production of tobacco; ‘‘(C) CRITERIA.—Individual tobacco produc- marketing quota, national acreage allot- ‘‘(B) crop rotation practices; tion permits shall be reallocated by the ap- ment, and national average yield goal are de- ‘‘(C) soil and other physical factors affect- propriate county committee under this para- termined and announced, the Secretary shall ing the production of tobacco; and graph in a fair and equitable manner after provide for the determination of individual ‘‘(D) the past tobacco-producing experience taking into consideration— tobacco production permits, individual acre- of the producer. ‘‘(i) the experience of the producer; age limitations, and individual marketing ‘‘(4) PERMIT YIELD.—The permit yield for ‘‘(ii) the availability of land, labor, and limitations under this section for the crop any producer for which a new individual to- equipment for the production of tobacco; and marketing year covered by the deter- bacco production permit is established shall ‘‘(iii) crop rotation practices; and minations. be determined on the basis of available pro- ‘‘(iv) the soil and other physical factors af- ‘‘(f) ASSIGNMENT OF TOBACCO PRODUCTION ductivity data for the land involved and fecting the production of tobacco. PERMITS.— yields for similar farms in the same county. ‘‘(D) MEDICAL HARDSHIPS AND CROP DISAS- ‘‘(1) LIMITATION TO SAME COUNTY.—Each in- ‘‘(i) PENALTIES.— TERS.—Notwithstanding any other provision dividual tobacco production permit holder ‘‘(1) PRODUCTION ON OTHER FARMS.—If any of this Act, the Secretary may issue an indi- shall assign the individual acreage limita- quantity of tobacco is marketed as having vidual tobacco production permit under this tion and individual marketing limitation to been produced under an individual acreage paragraph to a producer that is otherwise in- 1 or more farms located within the county of limitation or individual marketing limita- eligible for the permit due to a medical hard- origin of the individual tobacco production tion assigned to a farm but was produced on ship or crop disaster that occurred during permit. a different farm, the individual acreage limi- the 1997 marketing year. ‘‘(2) FILING WITH COUNTY COMMITTEE.—The tation or individual marketing limitation ‘‘(c) REFERENDUM.— assignment of an individual acreage limita- for the following marketing year shall be ‘‘(1) ANNOUNCEMENT OF QUOTA AND ALLOT- tion and individual marketing limitation forfeited. MENT.—Not later than December 15, 1998, the shall not be effective until evidence of the ‘‘(2) FALSE REPORT.—If a person to which Secretary pursuant to subsection (b) shall assignment, in such form as required by the an individual tobacco production permit is determine and announce— Secretary, is filed with and determined by issued files, or aids or acquiesces in the fil- ‘‘(A) the quantity of the national market- the county committee for the county in ing of, a false report with respect to the as- ing quota for flue-cured tobacco for the 1999 which the farm involved is located. signment of an individual acreage limitation marketing year; and ‘‘(3) LIMITATION ON TILLABLE CROPLAND.— or individual marketing limitation for a ‘‘(B) the national acreage allotment and The total acreage assigned to any farm quantity of tobacco, the individual acreage national average yield goal for the 1999 crop under this subsection shall not exceed the limitation or individual marketing limita- of flue-cured tobacco. acreage of cropland on the farm. tion for the following marketing year shall ‘‘(2) SPECIAL REFERENDUM.—Not later than ‘‘(g) PROHIBITION ON SALE OR LEASING OF be forfeited. 30 days after the announcement of the quan- INDIVIDUAL TOBACCO PRODUCTION PERMITS.— ‘‘(j) MARKETING PENALTIES.— tity of the national marketing quota in 2001, ‘‘(1) IN GENERAL.—Except as provided in ‘‘(1) IN GENERAL.—When individual tobacco the Secretary shall conduct a special ref- paragraphs (2) and (3), the Secretary shall production permits under this section are in erendum of the tobacco production permit not permit the sale and transfer, or lease and effect, provisions with respect to penalties holders that were the principal producers of transfer, of an individual tobacco production for the marketing of excess tobacco and the flue-cured tobacco of the 1997 crop to deter- permit issued under this section. other provisions contained in section 314 mine whether the producers approve or op- ‘‘(2) TRANSFER TO DESCENDANTS.— shall apply in the same manner and to the pose the continuation of individual tobacco ‘‘(A) DEATH.—In the case of the death of a same extent as they would apply under sec- production permits on an acreage-poundage person to whom an individual tobacco pro- tion 317(g) if farm marketing quotas were in basis as provided in this section for the 2002 duction permit has been issued under this effect. through 2004 marketing years. section, the permit shall transfer to the sur- ‘‘(2) PRODUCTION ON OTHER FARMS.—If a pro- ‘‘(3) APPROVAL OF PERMITS.—If the Sec- viving spouse of the person or, if there is no ducer falsely identifies tobacco as having retary determines that more than 662⁄3 per- surviving spouse, to surviving direct de- been produced on or marketed from a farm cent of the producers voting in the special scendants of the person. to which an individual acreage limitation or referendum approve the establishment of in- ‘‘(B) TEMPORARY INABILITY TO FARM.—In individual marketing limitation has been as- dividual tobacco production permits on an the case of the death of a person to whom an signed, future individual acreage limitations acreage-poundage basis— individual tobacco production permit has and individual marketing limitations shall ‘‘(A) individual tobacco production permits been issued under this section and whose de- be forfeited.’’. on an acreage-poundage basis as provided in scendants are temporarily unable to produce SEC. 1025. MODIFICATIONS IN FEDERAL TO- this section shall be in effect for the 2002 a crop of tobacco, the Secretary may hold BACCO PROGRAMS. through 2004 marketing years; and the license in the name of the descendants (a) PROGRAM REFERENDA.—Section 312(c) of ‘‘(B) marketing quotas on an acreage- for a period of not more than 18 months. the Agricultural Adjustment Act of 1938 (7 poundage basis shall cease to be in effect for ‘‘(3) VOLUNTARY TRANSFERS.—A person that U.S.C. 1312(c)) is amended— the 2002 through 2004 marketing years. is eligible to obtain an individual tobacco (1) by striking ‘‘(c) Within thirty’’ and in- ‘‘(4) DISAPPROVAL OF PERMITS.—If individ- production permit under this section may at serting the following: ual tobacco production permits on an acre- any time transfer all or part of the permit to ‘‘(c) REFERENDA ON QUOTAS.— age-poundage basis are not approved by more the person’s spouse or direct descendants ‘‘(1) IN GENERAL.—Not later than 30’’; and than 662⁄3 percent of the producers voting in that are actively engaged in the production (2) by adding at the end the following: the referendum, no marketing quotas on an of tobacco. ‘‘(2) REFERENDA ON PROGRAM CHANGES.— acreage-poundage basis shall continue in ef- ‘‘(h) RESERVE.— ‘‘(A) IN GENERAL.—In the case of any type fect that were proclaimed under section 317 ‘‘(1) IN GENERAL.—For each marketing year of tobacco for which marketing quotas are in prior to the referendum. for which individual tobacco production per- effect, on the receipt of a petition from more ‘‘(5) APPLICABLE MARKETING YEARS.—If in- mits are in effect under this section, the Sec- than 5 percent of the producers of that type dividual tobacco production permits have retary may establish a reserve from the na- of tobacco in a State, the Secretary shall June 11, 1998 CONGRESSIONAL RECORD — SENATE S6251 conduct a statewide referendum on any pro- (B) in clause (iii)— (C) if the preliminary finding under sub- posal related to the lease and transfer of to- (i) in the matter preceding subclause (I), by paragraph (B)(i) is affirmative, ensure that bacco quota within a State requested by the striking ‘‘Flue-cured or Burley tobacco’’ and rapid response and basic readjustment serv- petition that is authorized under this part. inserting ‘‘each kind of tobacco for which ices authorized under other Federal laws are ‘‘(B) APPROVAL OF PROPOSALS.—If a major- price support is made available under this made available to the workers. ity of producers of the type of tobacco in the Act, and each kind of like tobacco,’’; and (c) REVIEW OF PETITIONS BY SECRETARY; State approve a proposal in a referendum (ii) by striking subclause (II) and inserting CERTIFICATIONS.— conducted under subparagraph (A), the Sec- the following: (1) IN GENERAL.—The Secretary, within 30 retary shall implement the proposal in a ‘‘(II) the sum of the amount of the per days after receiving a petition under sub- manner that applies to all producers and pound producer contribution and purchaser section (b)(2)(B)(ii), shall determine whether quota holders of that type of tobacco in the assessment (if any) for the kind of tobacco the petition meets the criteria described in State.’’. payable under clauses (i) and (ii); and’’. subsection (a)(1). On a determination that (b) PURCHASE REQUIREMENTS.—Section 320B (2) NO NET COST TOBACCO ACCOUNT.—Section the petition meets the criteria, the Sec- of the Agricultural Adjustment Act of 1938 (7 106B(d)(1) of the Agricultural Act of 1949 (7 retary shall issue to workers covered by the U.S.C. 1314h) is amended— U.S.C. 1445–2(d)(1)) is amended— petition a certification of eligibility to apply (1) in subsection (c)— (A) in subparagraph (B), by inserting after for the assistance described in subsection (d). (A) by striking ‘‘(c) The amount’’ and in- ‘‘Burley quota tobacco’’ the following: ‘‘and (2) DENIAL OF CERTIFICATION.—On the de- serting ‘‘(c) AMOUNT OF PENALTY.—For the fire-cured and dark air-cured tobacco’’; and nial of a certification with respect to a peti- 1998 and subsequent marketing years, the (B) in subparagraph (C), by striking ‘‘Flue- tion under paragraph (1), the Secretary shall amount’’; and cured and Burley tobacco’’ and inserting review the petition in accordance with the (B) by striking paragraph (1) and inserting ‘‘each kind of tobacco for which price sup- requirements of other applicable assistance the following: port is made available under this Act, and programs to determine if the workers may be ‘‘(1) 105 percent of the average market each kind of like tobacco,’’. certified under the other programs. price for the type of tobacco involved during Subtitle C—Farmer and Worker Transition (d) COMPREHENSIVE ASSISTANCE.— the preceding marketing year; and’’. Assistance (1) IN GENERAL.—Workers covered by a cer- (c) ELIMINATION OF TOBACCO MARKETING tification issued by the Secretary under sub- SEC. 1031. TOBACCO WORKER TRANSITION PRO- ASSESSMENT.— section (c)(1) shall be provided with benefits GRAM. (1) IN GENERAL.—Section 106 of the Agricul- and services described in paragraph (2) in the (a) GROUP ELIGIBILITY REQUIREMENTS.— tural Act of 1949 (7 U.S.C. 1445) is amended by same manner and to the same extent as (1) CRITERIA.—A group of workers (includ- striking subsection (g). ing workers in any firm or subdivision of a workers covered under a certification under (2) CONFORMING AMENDMENT.—Section firm involved in the manufacture, process- subchapter A of title II of the Trade Act of 422(c) of the Uruguay Round Agreements Act ing, or warehousing of tobacco or tobacco 1974 (19 U.S.C. 2271 et seq.), except that the (Public Law 103–465; 7 U.S.C. 1445 note) is products) shall be certified as eligible to total amount of payments under this section amended by striking ‘‘section 106(g), 106A, or apply for adjustment assistance under this for any fiscal year shall not exceed 106B of the Agricultural Act of 1949 (7 U.S.C. section pursuant to a petition filed under $25,000,000. 1445(g), 1445–1, or 1445–2)’’ and inserting ‘‘sec- subsection (b) if the Secretary of Labor de- (2) BENEFITS AND SERVICES.—The benefits tion 106A or 106B of the Agricultural Act of termines that a significant number or pro- and services described in this paragraph are 1949 (7 U.S.C. 1445–1, 1445–2)’’. portion of the workers in the workers’ firm the following: DJUSTMENT FOR LAND RENTAL COSTS.— (d) A or an appropriate subdivision of the firm (A) Employment services of the type de- Section 106 of the Agricultural Act of 1949 (7 have become totally or partially separated, scribed in section 235 of the Trade Act of 1974 U.S.C. 1445) is amended by adding at the end or are threatened to become totally or par- (19 U.S.C. 2295). the following: tially separated, and— (B) Training described in section 236 of the ‘‘(h) ADJUSTMENT FOR LAND RENTAL (A) the sales or production, or both, of the Trade Act of 1974 (19 U.S.C. 2296), except that COSTS.—For each of the 1999 and 2000 mar- firm or subdivision have decreased abso- notwithstanding the provisions of section keting years for flue-cured tobacco, after 236(a)(2)(A) of that Act, the total amount of consultation with producers, State farm or- lutely; and (B) the implementation of the national to- payments for training under this section for ganizations and cooperative associations, the any fiscal year shall not exceed $12,500,000. Secretary shall make an adjustment in the bacco settlement contributed importantly to the workers’ separation or threat of separa- (C) Tobacco worker readjustment allow- price support level for flue-cured tobacco ances, which shall be provided in the same equal to the annual change in the average tion and to the decline in the sales or pro- duction of the firm or subdivision. manner as trade readjustment allowances cost per pound to flue-cured producers, as de- are provided under part I of subchapter B of (2) DEFINITION OF CONTRIBUTED IMPOR- termined by the Secretary, under agree- chapter 2 of title II of the Trade Act of 1974 ments through which producers rent land to TANTLY.—In paragraph (1)(B), the term ‘‘con- tributed importantly’’ means a cause that is (19 U.S.C. 2291 et seq.), except that— produce flue-cured tobacco.’’. (i) the provisions of sections 231(a)(5)(C) (e) FIRE-CURED AND DARK AIR-CURED TO- important but not necessarily more impor- tant than any other cause. and 231(c) of that Act (19 U.S.C. 2291(a)(5)(C), BACCO PROGRAMS.— 2291(c)), authorizing the payment of trade re- (1) LIMITATION ON TRANSFERS.—Section (3) REGULATIONS.—The Secretary shall issue regulations relating to the application adjustment allowances on a finding that it is 318(g) of the Agricultural Adjustment Act of not feasible or appropriate to approve a 1938 (7 U.S.C. 13l4d(g)) is amended— of the criteria described in paragraph (1) in making preliminary findings under sub- training program for a worker, shall not be (A) by striking ‘‘ten’’ and inserting ‘‘30’’; applicable to payment of allowances under and section (b) and determinations under sub- section (c). this section; and (B) by inserting ‘‘during any crop year’’ (ii) notwithstanding the provisions of sec- after ‘‘transferred to any farm’’. (b) PRELIMINARY FINDINGS AND BASIC AS- SISTANCE.— tion 233(b) of that Act (19 U.S.C. 2293(b)), in (2) LOSS OF ALLOTMENT OR QUOTA THROUGH (1) FILING OF PETITIONS.—A petition for cer- order for a worker to qualify for tobacco re- UNDERPLANTING.—Section 318 of the Agricul- tification of eligibility to apply for adjust- adjustment allowances under this section, tural Adjustment Act of 1938 (7 U.S.C. 1314d) the worker shall be enrolled in a training is amended by adding at the end the follow- ment assistance under this section may be filed by a group of workers (including work- program approved by the Secretary of the ing: type described in section 236(a) of that Act ‘‘(k) LOSS OF ALLOTMENT OR QUOTA ers in any firm or subdivision of a firm in- (19 U.S.C. 2296(a)) by the later of— THROUGH UNDERPLANTING.—Effective for the volved in the manufacture, processing, or (I) the last day of the 16th week of the 1999 and subsequent marketing years, no warehousing of tobacco or tobacco products) worker’s initial unemployment compensa- acreage allotment or acreage-poundage or by their certified or recognized union or quota, other than a new marketing quota, other duly authorized representative with tion benefit period; or shall be established for a farm on which no the Governor of the State in which the work- (II) the last day of the 6th week after the fire-cured or dark air-cured tobacco was ers’ firm or subdivision thereof is located. week in which the Secretary issues a certifi- planted or considered planted during at least (2) FINDINGS AND ASSISTANCE.—On receipt cation covering the worker. 2 of the 3 crop years immediately preceding of a petition under paragraph (1), the Gov- In cases of extenuating circumstances relat- the crop year for which the acreage allot- ernor shall— ing to enrollment of a worker in a training ment or acreage-poundage quota would oth- (A) notify the Secretary that the Governor program under this section, the Secretary erwise be established.’’. has received the petition; may extend the time for enrollment for a pe- (f) EXPANSION OF TYPES OF TOBACCO SUB- (B) within 10 days after receiving the peti- riod of not to exceed 30 days. JECT TO NO NET COST ASSESSMENT.— tion— (D) Job search allowances of the type de- (1) NO NET COST TOBACCO FUND.—Section (i) make a preliminary finding as to wheth- scribed in section 237 of the Trade Act of 1974 106A(d)(1)(A) of the Agricultural Act of 1949 er the petition meets the criteria described (19 U.S.C. 2297). (7 U.S.C. 1445–1(d)(1)(A)) is amended— in subsection (a)(1); and (E) Relocation allowances of the type de- (A) in clause (ii), by inserting after ‘‘Bur- (ii) transmit the petition, together with a scribed in section 238 of the Trade Act of 1974 ley quota tobacco’’ the following: ‘‘and fire- statement of the finding under clause (i) and (19 U.S.C. 2298). cured and dark air-cured quota tobacco’’; reasons for the finding, to the Secretary for (e) INELIGIBILITY OF INDIVIDUALS RECEIVING and action under subsection (c); and PAYMENTS FOR LOST TOBACCO QUOTA.—No S6252 CONGRESSIONAL RECORD — SENATE June 11, 1998 benefits or services may be provided under ‘‘(v) $2,900 for each of the academic years elect to have the institution provide other this section to any individual who has re- 2019–2020 through 2023–2024. such goods and services by crediting the stu- ceived payments for lost tobacco quota ‘‘(B) PART-TIME RULE.—In any case where a dent’s account. under section 1021. student attends an institution of higher edu- ‘‘(f) INSUFFICIENT FUNDING.—If, for any fis- (f) FUNDING.—Of the amounts appropriated cation on less than a full-time basis (includ- cal year, the funds made available to carry to carry out this title, the Secretary may ing a student who attends an institution of out this subpart are insufficient to satisfy use not to exceed $25,000,000 for each of fiscal higher education on less than a half-time fully all grants for students determined to be years 1999 through 2008 to provide assistance basis) during any academic year, the amount eligible under section 420F, the amount of under this section. of the grant for which that student is eligi- the grant provided under subsection (b) shall (g) EFFECTIVE DATE.—This section shall ble shall be reduced in proportion to the de- be reduced on a pro rata basis among all eli- take effect on the date that is the later of— gree to which that student is not so attend- gible students. (1) October l, 1998; or ing on a full-time basis, in accordance with ‘‘(g) TREATMENT OF INSTITUTIONS AND STU- (2) the date of enactment of this Act. a schedule of reductions established by the DENTS UNDER OTHER LAWS.—Any institution (h) TERMINATION DATE.—No assistance, Secretary for the purposes of this subpara- of higher education that enters into an vouchers, allowances, or other payments graph, computed in accordance with this agreement with the Secretary to disburse to may be provided under this section after the subpart. The schedule of reductions shall be students attending that institution the date that is the earlier of— established by regulation and published in amounts those students are eligible to re- (1) the date that is 10 years after the effec- the Federal Register. ceive under this subpart shall not be deemed, tive date of this section under subsection (g); by virtue of the agreement, to be a contrac- ‘‘(2) MAXIMUM.—No grant under this sub- or part shall exceed the cost of attendance (as tor maintaining a system of records to ac- (2) the date on which legislation establish- described in section 472) at the institution at complish a function of the Secretary. Recipi- ing a program providing dislocated workers which that student is in attendance. If, with ents of farmer opportunity grants shall not with comprehensive assistance substantially respect to any student, it is determined that be considered to be individual grantees for similar to the assistance provided by this purposes of the Drug-Free Workplace Act of the amount of a grant exceeds the cost of at- section becomes effective. 1988 (41 U.S.C. 701 et seq.). tendance for that year, the amount of the SEC. 1032. FARMER OPPORTUNITY GRANTS. grant shall be reduced to an amount equal to ‘‘SEC. 420F. STUDENT ELIGIBILITY. Part A of title IV of the Higher Education the cost of attendance at the institution. ‘‘(a) IN GENERAL.—In order to receive any Act of 1965 (20 U.S.C. 1070 et seq.) is amended grant under this subpart, a student shall— ‘‘(3) PROHIBITION.—No grant shall be award- by adding at the end the following: ed under this subpart to any individual who ‘‘(1) be a member of a tobacco farm family ‘‘Subpart 9—Farmer Opportunity Grants is incarcerated in any Federal, State, or in accordance with subsection (b); ‘‘SEC. 420D. STATEMENT OF PURPOSE. local penal institution. ‘‘(2) be enrolled or accepted for enrollment ‘‘It is the purpose of this subpart to assist ‘‘(c) PERIOD OF ELIGIBILITY FOR GRANTS.— in a degree, certificate, or other program (in- in making available the benefits of post- ‘‘(1) IN GENERAL.—The period during which cluding a program of study abroad approved secondary education to eligible students (de- a student may receive grants shall be the pe- for credit by the eligible institution at which termined in accordance with section 420F) in riod required for the completion of the first the student is enrolled) leading to a recog- institutions of higher education by providing undergraduate baccalaureate course of study nized educational credential at an institu- farmer opportunity grants to all eligible stu- being pursued by that student at the institu- tion of higher education that is an eligible dents. tion at which the student is in attendance, institution in accordance with section 487, ‘‘SEC. 420E. PROGRAM AUTHORITY; AMOUNT AND except that any period during which the stu- and not be enrolled in an elementary or sec- DETERMINATIONS; APPLICATIONS. dent is enrolled in a noncredit or remedial ondary school; ‘‘(a) PROGRAM AUTHORITY AND METHOD OF course of study as described in paragraph (2) ‘‘(3) if the student is presently enrolled at DISTRIBUTION.— shall not be counted for the purpose of this an institution of higher education, be main- ‘‘(1) PROGRAM AUTHORITY.—From amounts paragraph. taining satisfactory progress in the course of made available under section 1011(d)(5) of the ‘‘(2) CONSTRUCTION.—Nothing in this sec- study the student is pursuing in accordance LEAF Act, the Secretary, during the period tion shall be construed to— with subsection (c); beginning July 1, 1999, and ending September ‘‘(A) exclude from eligibility courses of ‘‘(4) not owe a refund on grants previously 30, 2024, shall pay to each eligible institution study that are noncredit or remedial in na- received at any institution of higher edu- such sums as may be necessary to pay to ture and that are determined by the institu- cation under this title, or be in default on each eligible student (determined in accord- tion to be necessary to help the student be any loan from a student loan fund at any in- ance with section 420F) for each academic prepared for the pursuit of a first under- stitution provided for in part D, or a loan year during which that student is in attend- graduate baccalaureate degree or certificate made, insured, or guaranteed by the Sec- ance at an institution of higher education, as or, in the case of courses in English language retary under this title for attendance at any an undergraduate, a farmer opportunity instruction, to be necessary to enable the institution; grant in the amount for which that student student to utilize already existing knowl- ‘‘(5) file with the institution of higher edu- is eligible, as determined pursuant to sub- edge, training, or skills; and cation that the student intends to attend, or section (b). Not less than 85 percent of the ‘‘(B) exclude from eligibility programs of is attending, a document, that need not be sums shall be advanced to eligible institu- study abroad that are approved for credit by notarized, but that shall include— tions prior to the start of each payment pe- the home institution at which the student is ‘‘(A) a statement of educational purpose riod and shall be based on an amount re- enrolled. stating that the money attributable to the quested by the institution as needed to pay ‘‘(3) PROHIBITION.—No student is entitled to grant will be used solely for expenses related eligible students, except that this sentence receive farmer opportunity grant payments to attendance or continued attendance at shall not be construed to limit the authority concurrently from more than 1 institution or the institution; and of the Secretary to place an institution on a from the Secretary and an institution. ‘‘(B) the student’s social security number; reimbursement system of payment. ‘‘(d) APPLICATIONS FOR GRANTS.— and ‘‘(2) CONSTRUCTION.—Nothing in this sec- ‘‘(1) IN GENERAL.—The Secretary shall from ‘‘(6) be a citizen of the United States. tion shall be construed to prohibit the Sec- time to time set dates by which students ‘‘(b) TOBACCO FARM FAMILIES.— retary from paying directly to students, in shall file applications for grants under this ‘‘(1) IN GENERAL.—For the purpose of sub- advance of the beginning of the academic subpart. The filing of applications under this section (a)(1), a student is a member of a to- term, an amount for which the students are subpart shall be coordinated with the filing bacco farm family if during calendar year eligible, in cases where the eligible institu- of applications under section 401(c). 1998 the student was— tion elects not to participate in the disburse- ‘‘(2) INFORMATION AND ASSURANCES.—Each ‘‘(A) an individual who— ment system required by paragraph (1). student desiring a grant for any year shall ‘‘(i) is a participating tobacco producer (as ‘‘(3) DESIGNATION.—Grants made under this file with the Secretary an application for the defined in section 1002 of the LEAF Act) who subpart shall be known as ‘farmer oppor- grant containing such information and as- is a principal producer of tobacco on a farm; tunity grants’. surances as the Secretary may deem nec- or ‘‘(b) AMOUNT OF GRANTS.— essary to enable the Secretary to carry out ‘‘(ii) is otherwise actively engaged in the ‘‘(1) AMOUNTS.— the Secretary’s functions and responsibil- production of tobacco; ‘‘(A) IN GENERAL.—The amount of the grant ities under this subpart. ‘‘(B) a spouse, son, daughter, stepson, or for a student eligible under this subpart ‘‘(e) DISTRIBUTION OF GRANTS TO STU- stepdaughter of an individual described in shall be— DENTS.—Payments under this section shall subparagraph (A); ‘‘(i) $1,700 for each of the academic years be made in accordance with regulations pro- ‘‘(C) an individual who was a dependent 1999–2000 through 2003–2004;ΩI26 ‘‘(ii) $2,000 mulgated by the Secretary for such purpose, (within the meaning of section 152 of the In- for each of the academic years 2004–2005 in such manner as will best accomplish the ternal Revenue Code of 1986) of an individual through 2008–2009; purpose of this section. Any disbursement al- described in subparagraph (A). ‘‘(iii) $2,300 for each of the academic years lowed to be made by crediting the student’s ‘‘(2) ADMINISTRATION.—On request, the Sec- 2009–2010 through 2013–2014; account shall be limited to tuition and fees retary of Agriculture shall provide to the ‘‘(iv) $2,600 for each of the academic years and, in the case of institutionally owned Secretary such information as is necessary 2014–2015 through 2018–2019; and housing, room and board. The student may to carry out this subsection. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6253

‘‘(c) SATISFACTORY PROGRESS.— U.S.C. 2471(4)(C))) that is offered in whole or ufacturer, distributor, or retailer to comply ‘‘(1) IN GENERAL.—For the purpose of sub- in part through telecommunications and with the National Tobacco Policy and Youth section (a)(3), a student is maintaining satis- leads to a recognized associate, bachelor, or Smoking Reduction Act. factory progress if— graduate degree conferred by the institution Subtitle E—Resolution of Conflict with Title ‘‘(A) the institution at which the student is shall not be considered to be enrolled in cor- XV in attendance reviews the progress of the respondence courses unless the total amount SEC. 1051. TITLE XV NULL AND VOID. student at the end of each academic year, or of telecommunications and correspondence Notwithstanding any other provision of its equivalent, as determined by the institu- courses at the institution equals or exceeds this Act, title XV shall have no force or ef- tion; and 50 percent of the courses. fect. ‘‘(B) the student has at least a cumulative ‘‘(2) RESTRICTION OR REDUCTIONS OF FINAN- f C average or its equivalent, or academic CIAL AID.—A student’s eligibility to receive a standing consistent with the requirements grant under this subpart may be reduced if a MINIDOKA PROJECT ACT OF 1998 for graduation, as determined by the institu- financial aid officer determines under the tion, at the end of the second such academic discretionary authority provided in section year. 479A that telecommunications instruction CRAIG AMENDMENT NO. 2698 ‘‘(2) SPECIAL RULE.—Whenever a student results in a substantially reduced cost of at- fails to meet the eligibility requirements of tendance to the student. (Ordered to lie on the table.) subsection (a)(3) as a result of the applica- ‘‘(3) DEFINITION.—For the purposes of this Mr. CRAIG submitted an amendment tion of this subsection and subsequent to subsection, the term ‘telecommunications’ intended to be proposed by him to the that failure the student has academic stand- means the use of television, audio, or com- bill (S. 538) to authorize the Secretary ing consistent with the requirements for puter transmission, including open broad- of the Interior to convey certain facili- graduation, as determined by the institu- cast, closed circuit, cable, microwave, or sat- ties of the Minidoka project to the Bur- tion, for any grading period, the student ellite, audio conferencing, computer con- ley Irrigation District, and for other may, subject to this subsection, again be eli- ferencing, or video cassettes or discs, except purposes; as follows: gible under subsection (a)(3) for a grant that the term does not include a course that under this subpart. is delivered using video cassette or disc re- (1) Paragraph 1(b)(1) of the Committee ‘‘(3) WAIVER.—Any institution of higher cordings at the institution and that is not amendment is amended by deleting ‘‘trans- education at which the student is in attend- delivered in person to other students of that mission lines,’’ and by deleting ‘‘(including ance may waive paragraph (1) or (2) for institution. the electric transmission lines used to trans- mit electric power for the operation of the undue hardship based on— ‘‘(g) STUDY ABROAD.—Nothing in this sub- ‘‘(A) the death of a relative of the student; part shall be construed to limit or otherwise pumping facilities of the Division and relat- ‘‘(B) the personal injury or illness of the prohibit access to study abroad programs ap- ed purposes for which the allocable construc- student; or proved by the home institution at which a tion costs have been fully repaid by Bur- ‘‘(C) special circumstances as determined student is enrolled. An otherwise eligible ley)’’. (2) Paragraph 1(c)(1) of the Committee by the institution. student who is engaged in a program of amendment is modified to read as follows: ‘‘(d) STUDENTS WHO ARE NOT SECONDARY study abroad approved for academic credit ‘‘(1) TRANSFER.—(A) Subject to subpara- SCHOOL GRADUATES.—In order for a student by the home institution at which the student graphs (B) and (C), the Secretary shall trans- who does not have a certificate of graduation is enrolled shall be eligible to receive a grant fer to Burley, through an agreement among from a school providing secondary education, under this subpart, without regard to wheth- Burley, the Minidoka Irrigation district, and or the recognized equivalent of the certifi- er the study abroad program is required as the Secretary, in accordance with and sub- cate, to be eligible for any assistance under part of the student’s degree program. ject to the law of the State of Idaho, all nat- this subpart, the student shall meet either 1 ‘‘(h) VERIFICATION OF SOCIAL SECURITY ural flow, waste, seepage, return flow, and of the following standards: NUMBER.—The Secretary, in cooperation groundwater rights held in the name of the ‘‘(1) EXAMINATION.—The student shall take with the Commissioner of Social Security, an independently administered examination United States—— shall verify any social security number pro- (1) for the benefit of the Minidoka Project and shall achieve a score, specified by the vided by a student to an eligible institution Secretary, demonstrating that the student or specifically for the Burley Irrigation Dis- under subsection (a)(5)(B) and shall enforce trict; and can benefit from the education or training the following conditions: being offered. The examination shall be ap- (2) that are for use on lands within the ‘‘(1) PENDING VERIFICATION.—Except as pro- Burley Irrigation District; and proved by the Secretary on the basis of com- vided in paragraphs (2) and (3), an institution pliance with such standards for development, (3) which are set forth in contracts be- shall not deny, reduce, delay, or terminate a tween the United States and Burley or in the administration, and scoring as the Secretary student’s eligibility for assistance under this may prescribe in regulations. decree of June 20, 1913 of the District Court subpart because social security number ver- of the Fourth Judicial District of the State ‘‘(2) DETERMINATION.—The student shall be ification is pending. of Idaho, in and for the County of Twin Falls, determined as having the ability to benefit ‘‘(2) DENIAL OR TERMINATION.—If there is a from the education or training in accordance in the case of Twin Falls Canal Company v. determination by the Secretary that the so- Charles N. Foster, et al., and commonly re- with such process as the State shall pre- cial security number provided to an eligible scribe. Any such process described or ap- ferred to as the ‘‘Foster decree’’. institution by a student is incorrect, the in- ‘‘(B) Any rights that are presently held for proved by a State for the purposes of this stitution shall deny or terminate the stu- the benefit of lands within both the section shall be effective 6 months after the dent’s eligibility for any grant under this Minidoka Irrigation District and the Burley date of submission to the Secretary unless subpart until such time as the student pro- Irrigation District shall be allotted in such the Secretary disapproves the process. In de- vides documented evidence of a social secu- manner so as to neither enlarge nor diminish termining whether to approve or disapprove rity number that is determined by the insti- the respective rights of either district in the process, the Secretary shall take into ac- tution to be correct. such water rights as described in contracts count the effectiveness of the process in ena- ‘‘(3) CONSTRUCTION.—Nothing in this sub- between Burley and the United States. bling students without secondary school di- section shall be construed to permit the Sec- ‘‘(C) The transfer of water rights in accord- plomas or the recognized equivalent to bene- retary to take any compliance, disallowance, ance with this paragraph shall not impair fit from the instruction offered by institu- penalty, or other regulatory action against— the integrated operation of the Minidoka tions utilizing the process, and shall also ‘‘(A) any institution of higher education Project, affect any other adjudicated rights, take into account the cultural diversity, eco- with respect to any error in a social security or results in any adverse impact on any nomic circumstances, and educational prepa- number, unless the error was a result of other project water user.’’ ration of the populations served by the insti- fraud on the part of the institution; or f tutions. ‘‘(B) any student with respect to any error ‘‘(e) SPECIAL RULE FOR CORRESPONDENCE in a social security number, unless the error NATIONAL TOBACCO POLICY AND COURSES.—A student shall not be eligible to was a result of fraud on the part of the stu- receive a grant under this subpart for a cor- YOUTH SMOKING REDUCTION ACT dent.’’. respondence course unless the course is part of a program leading to an associate, bach- Subtitle D—Immunity elor, or graduate degree. SEC. 1041. GENERAL IMMUNITY FOR TOBACCO KERREY AMENDMENTS NOS. 2699– ‘‘(f) COURSES OFFERED THROUGH TELE- PRODUCERS AND TOBACCO WARE- 2700 COMMUNICATIONS.— HOUSE OWNERS. (Ordered to lie on the table.) ‘‘(1) RELATION TO CORRESPONDENCE Notwithstanding any other provision of Mr. KERREY submitted two amend- COURSES.—A student enrolled in a course of this title, a participating tobacco producer, ments intended to be proposed by him instruction at an eligible institution of high- tobacco-related growers association, or to- er education (other than an institute or bacco warehouse owner or employee may not to the bill, S. 1415, supra; as follows: school that meets the definition in section be subject to liability in any Federal or AMENDMENT NO. 2699 521(4)(C) of the Carl D. Perkins Vocational State court for any cause of action resulting At the end of subtitle D of title XV, add and Applied Technology Education Act (20 from the failure of any tobacco product man- the following: S6254 CONGRESSIONAL RECORD — SENATE June 11, 1998 SEC. 1563. TOBACCO PRODUCERS MARKETING which the member is negotiating or has any ment, including any field service, use infor- CORPORATION. arrangement concerning prospective employ- mation, services, facilities, officials, and em- (a) ESTABLISHMENT.—There is established a ment, has a financial interest. ployees in carrying out this section, and pay corporation to be known as the ‘‘Tobacco (B) VIOLATIONS.—Violation of subpara- for the use, which payments shall be trans- Producers Marketing Corporation’’, which graph (A) by a member of the Board shall be ferred to the applicable appropriation ac- shall be a federally chartered instrumental- cause for removal of the member, but shall count that incurred the expense; ity of the United States. not impair or otherwise affect the validity of (10) may obtain the services and fix the (b) DUTIES.—The Corporation negotiate any otherwise lawful action by the Corpora- compensation of any consultant and other- with buyers of tobacco produced in the tion in which the member participated. wise procure temporary and intermittent United States on behalf of producers of the (C) EXCEPTIONS.— services under section 3109(b) of title 5, tobacco that elect to be represented by the (i) IN GENERAL.—Except as provided in United States Code; Corporation (referred to in this section as clause (ii), the prohibitions contained in sub- (11) may use the United States mails on ‘‘participating producers’’). paragraph (A) shall not apply if— the same terms and conditions as the Execu- (c) BOARD OF DIRECTORS.— (I) a member of the Board advises the tive agencies of the Federal Government; (1) IN GENERAL.—The powers of the Cor- Board of the nature of the particular matter poration shall be vested in a Board of Direc- (12) shall have the rights, privileges, and in which the member proposes to participate, tors. immunities of the United States with respect and if the member makes a full disclosure of (2) MEMBERS.—The Board of Directors shall to the right to priority of payment with re- the financial interest, prior to any participa- composed of members elected by participat- spect to debts due from bankrupt, insolvent, tion; and ing producers. or deceased creditors; (II) the Board determines, by majority (3) MEMBERSHIP QUALIFICATIONS.—A mem- (13) may collect or compromise any obliga- vote, that the financial interest is too re- ber of the Board shall not hold any Federal, tions assigned to or held by the Corporation, mote or too inconsequential to affect the in- State, or local elected office or be a Federal including any legal or equitable rights ac- tegrity of the member’s services to the Cor- officer or employee. cruing to the Corporation; poration in that matter. (4) CHAIRPERSONS.—The chairperson of the (14) shall determine the character of, and (ii) VOTE.—The member involved shall not Board shall be elected by members of the necessity for, obligations and expenditures of vote on the determination under clause the Corporation and the manner in which the Board. (i)(II). (5) EXECUTIVE DIRECTOR.— obligations and expenditures shall be in- (D) FINANCIAL DISCLOSURE.—A Board mem- (A) APPOINTMENT.—The Board shall ap- curred, allowed, and paid, subject to provi- ber shall be subject to the financial disclo- sions of law specifically applicable to Gov- point an Executive Director. sure requirements of subchapter B of chapter (B) DUTIES.—The Executive Director shall ernment corporations; XVI of title 5, Code of Federal Regulations (15) may make final and conclusive settle- be the chief executive officer of the Corpora- (or any corresponding or similar regulation tion, with such power and authority as may ment and adjustment of any claim by or or ruling), applicable to a special Govern- against the Corporation or a fiscal officer of be conferred by the Board. ment employee (as defined in section 202(a) (C) COMPENSATION.—The Executive Direc- the Corporation; of title 18, United States Code). (16) may sell assets, loans, and equity in- tor shall receive basic pay at the rate pro- (11) BYLAWS.—The Board shall adopt, and vided for level IV of the Executive Schedule terests acquired in connection with the fi- may from time to time amend, any bylaw nancing of projects funded by the Corpora- under section 5315 of title 5, United States that is necessary for the proper management Code. tion; and and functioning of the Corporation. (17) may exercise all other lawful powers (6) OFFICERS.—The Board shall establish (12) PERSONNEL.—The Corporation may se- the offices and appoint the officers of the necessarily or reasonably related to the es- lect and appoint officers, attorneys, employ- tablishment of the Corporation to carry out Corporation, including a Secretary, and de- ees, and agents, who shall be vested with this title and the powers, purposes, func- fine the duties of the officers in a manner such powers and duties as the Corporation tions, duties, and authorized activities of the consistent with this section. may determine. Corporation. (7) MEETINGS.— (d) GENERAL POWERS.—In addition to any (A) IN GENERAL.—The Board shall meet at other powers granted to the Corporation AMENDMENT NO. 2700 least 3 times each fiscal year at the call of a under this section, the Corporation— Chairperson or at the request of the Execu- (1) shall have succession in its corporate Strike title XV and insert the following: tive Director. name; TITLE XV—TOBACCO TRANSITION (B) LOCATION.—The location of a meeting (2) may adopt, alter, and rescind any bylaw SEC. 1501. DEFINITIONS. shall be subject to approval of the Executive and adopt and alter a corporate seal, which In this title: Director. shall be judicially noticed; (1) GOVERNOR.—The term ‘‘Governor’’ (C) QUORUM.—A quorum of the Board shall (3) may enter into any agreement or con- means the chief executive officer of a State. consist of a majority of the members. tract with a person or private or govern- (2) LEASE.—The term ‘‘lease’’ means— (8) TERM; VACANCIES.— mental agency; (A) the rental of quota on either a cash (A) TERM.—The term of office of a member (4) may lease, purchase, accept a gift or do- rent or crop share basis; of the Board elected under paragraph (2) nation of, or otherwise acquire, use, own, (B) the rental of farmland to produce to- shall be 4 years. hold, improve, or otherwise deal in or with, bacco under a farm marketing quota; or (B) VACANCIES.—A vacancy on the Board and sell, convey, mortgage, pledge, lease, ex- (C) the lease and transfer of quota for the shall be filled in the same manner as the change, or otherwise dispose of, any property marketing of tobacco produced on the farm original appointment was made. or interest in property, as the Corporation of a lessor. (9) COMPENSATION.— considers necessary in the transaction of the (3) OWNER.—The term ‘‘owner’’ means a (A) IN GENERAL.—A member of the Board business of the Corporation; person that, on the date of enactment of this shall receive, for each day (including travel (5) may sue and be sued in the corporate Act, owns quota provided by the Secretary. time) that the member is engaged in the per- name of the Corporation, except that— (4) PRODUCER.—The term ‘‘producer’’ formance of the functions of the Board, com- (A) no attachment, injunction, garnish- means a person that for each of the 1995 pensation at a rate not to exceed the daily ment, or similar process shall be issued through 1997 crops of tobacco (as determined equivalent of the annual rate in effect for against the Corporation or property of the by the Secretary) that were subject to level IV of the Executive Schedule under sec- Corporation; and quota— tion 5315 of title 5, United States Code. (B) exclusive original jurisdiction shall re- (A) leased quota or farmland; (B) EXPENSES.—A member of the Board side in the district courts of the United (B) shared in the risk of producing a crop shall be reimbursed for travel, subsistence, States, and the Corporation may intervene of tobacco; and and other necessary expenses incurred by the in any court in any suit, action, or proceed- (C) marketed the tobacco subject to quota. member in the performance of the duties of ing in which the Corporation has an interest; (5) QUOTA.—The term ‘‘quota’’ means the the member. (6) may independently retain legal rep- right to market tobacco under a basic mar- (10) CONFLICT OF INTEREST; FINANCIAL DIS- resentation; keting quota or acreage allotment allotted CLOSURE.— (7) may provide for and designate such to a person under the Agricultural Adjust- (A) CONFLICT OF INTEREST.—Except as pro- committees, and the functions of the com- ment Act of 1938 (7 U.S.C. 1281 et seq.). vided in subparagraph (C), a member of the mittees, as the Board considers necessary or (6) SECRETARY.—The term ‘‘Secretary’’ Board shall not vote on any matter concern- desirable; means the Secretary of Agriculture. ing any application, contract, or claim, or (8) may indemnify officers of the Corpora- (7) STATE.—The term ‘‘State’’ means each other particular matter pending before the tion, as the Board considers necessary and of the several States of the United States, Corporation, in which, to the knowledge of desirable, except that the officers shall not the District of Columbia, the Commonwealth the member, the member, spouse, or child of be indemnified for an act outside the scope of of Puerto Rico, and any other territory or the member, partner of the member, or orga- employment; possession of the United States. nization in which the member is serving as (9) may, with the consent of any board, (8) TOBACCO.—The term ‘‘tobacco’’ means officer, director, trustee, partner, or em- commission, independent establishment, or any kind of tobacco for which— ployee, or any person or organization with executive department of the Federal Govern- (A) a marketing quota is in effect; June 11, 1998 CONGRESSIONAL RECORD — SENATE S6255 (B) a marketing quota is not disapproved (C) assistance to tobacco warehouse owners (7) in paragraph (14)— by producers; or or operators. (A) in subparagraph (A), by striking ‘‘(A)’’; (C) price support is available. (d) TERMINATION OF AUTHORITY.—The au- and Subtitle A—Payments for Lost Value of thority provided by this section terminates (B) by striking subparagraphs (B), (C), and Tobacco Crops September 30, 2003. (D); SEC. 1511. PAYMENTS FOR LOST VALUE OF TO- Subtitle C—Tobacco Price Support and (8) by striking paragraph (15); BACCO CROPS. Production Adjustment Programs (9) in paragraph (16)— (a) IN GENERAL.—For each of fiscal years SEC. 1531. TERMINATION OF TOBACCO PRICE (A) by striking subparagraph (B); and 1999 through 2005, the Secretary shall make SUPPORT PROGRAM. (B) by redesignating subparagraph (C) as payments for the lost value of tobacco crops (a) PARITY PRICE SUPPORT.—Section 101 of subparagraph (B); and to owners and producers from funds made the Agricultural Act of 1949 (7 U.S.C. 1441) is (10) by redesignating paragraphs (16) and available from the National Tobacco Trust amended— (17) as paragraphs (15) and (16), respectively. Fund established by section 401. (1) in the first sentence of subsection (a), (c) PARITY PAYMENTS.—Section 303 of the (b) AMOUNT.— by striking ‘‘tobacco (except as otherwise Agricultural Adjustment Act of 1938 (7 U.S.C. (1) OWNERS.—The amount of the payment provided herein), corn,’’ and inserting 1303) is amended in the first sentence by made to an owner for a fiscal year under this ‘‘corn’’; striking ‘‘rice, or tobacco,’’ and inserting ‘‘or section shall equal 30 percent of the value of (2) by striking subsections (c), (g), (h), and rice,’’. the tobacco produced under a tobacco farm (i); (d) MARKETING QUOTAS.—Part I of subtitle marketing quota or farm acreage allotment (3) in subsection (d)(3)— B of title III of the Agricultural Adjustment established owned by the owner under the (A) by striking ‘‘, except tobacco,’’; and Act of 1938 (7 U.S.C. 1311 et seq.) is repealed. Agricultural Adjustment Act of 1938 (7 U.S.C. (B) by striking ‘‘and no price support shall (e) ADMINISTRATIVE PROVISIONS.—Section 1281 et seq.) for the 1997 crop year. be made available for any crop of tobacco for 361 of the Agricultural Adjustment Act of (2) PRODUCERS.—The amount of the pay- which marketing quotas have been dis- 1938 (7 U.S.C. 1361) is amended by striking ment made to a producer for a fiscal year approved by producers;’’; and ‘‘tobacco,’’. (4) by redesignating subsections (d) and (e) under this section shall equal 15 percent of (f) ADJUSTMENT OF QUOTAS.—Section 371 of the value of the tobacco produced by the pro- as subsections (c) and (d), respectively. the Agricultural Adjustment Act of 1938 (7 (b) TERMINATION OF TOBACCO PRICE SUP- ducer under a tobacco farm marketing quota U.S.C. 1371) is amended— PORT AND NO NET COST PROVISIONS.—Sec- or farm acreage allotment established under (1) in the first sentence of subsection (a), tions 106, 106A, and 106B of the Agricultural the Agricultural Adjustment Act of 1938 (7 by striking ‘‘peanuts, or tobacco’’ and insert- Act of 1949 (7 U.S.C. 1445, 1445–1, 1445–2) are U.S.C. 1281 et seq.) for the 1997 crop year. ing ‘‘or peanuts’’; and Subtitle B—Rural Economic Assistance repealed. (c) DEFINITION OF BASIC AGRICULTURAL (2) in the first sentence of subsection (b), Block Grants COMMODITY.—Section 408(c) of the Agricul- by striking ‘‘peanuts or tobacco’’ and insert- SEC. 1521. RURAL ECONOMIC ASSISTANCE BLOCK tural Act of 1949 (7 U.S.C. 1428(c)) is amended ing ‘‘or peanuts’’. GRANTS. by striking ‘‘tobacco,’’. (g) REPORTS AND RECORDS.—Section 373 of (a) IN GENERAL.—From funds made avail- (d) REVIEW OF BURLEY TOBACCO IMPORTS.— the Agricultural Adjustment Act of 1938 (7 able from the National Tobacco Trust Fund Section 3 of Public Law 98–59 (7 U.S.C. 625) is U.S.C. 1373) is amended— established by section 401, the Secretary repealed. (1) by striking ‘‘peanuts, or tobacco’’ each shall use $200,000,000 for each of fiscal years (e) POWERS OF COMMODITY CREDIT CORPORA- place it appears in subsections (a) and (b) 1999 through 2003 to provide block grants to TION.—Section 5 of the poration Charter Act and inserting ‘‘or peanuts’’; and tobacco-growing States to assist areas of (15 U.S.C. 714c) is amended by inserting (2) in subsection (a)— such a State that are economically depend- ‘‘(other than tobacco)’’ after ‘‘agricultural (A) in the first sentence, by striking ‘‘all ent on the production of tobacco. commodities’’ each place it appears. persons engaged in the business of redrying, (b) PAYMENTS BY SECRETARY TO TOBACCO- (f) TRANSITION PROVISIONS.— prizing, or stemming tobacco for produc- GROWING STATES.— (1) LIABILITY.—The amendments made by ers,’’; and (1) IN GENERAL.—The Secretary shall use this section shall not affect the liability of (B) in the last sentence, by striking ‘‘$500;’’ the amount available for a fiscal year under any person under any provision of law as in and all that follows through the period at subsection (a) to make block grant payments effect before the effective date of this sec- the end of the sentence and inserting ‘‘$500.’’. to the Governors of tobacco-growing States. tion. (h) REGULATIONS.—Section 375(a) of the Ag- (2) AMOUNT.—The amount of a block grant (2) TOBACCO STOCKS AND LOANS.—The Sec- ricultural Adjustment Act of 1938 (7 U.S.C. paid to a tobacco-growing State shall be retary shall issue regulations that require— 1375(a)) is amended by striking ‘‘peanuts, or based on, as determined by the Secretary— (A) the orderly disposition of tobacco tobacco’’ and inserting ‘‘or peanuts’’. (A) the number of counties in the State in stocks; and (i) EMINENT DOMAIN.—Section 378 of the which tobacco production is a significant (B) the repayment of all tobacco price sup- Agricultural Adjustment Act of 1938 (7 U.S.C. part of the county’s economy; and port loans by not later than 1 year after the 1378) is amended— (B) the level of economic dependence of the effective date of this section. (1) in the first sentence of subsection (c), counties on tobacco production. (g) CROPS.—This section and the amend- by striking ‘‘cotton, tobacco, and peanuts’’ (c) GRANTS BY STATES TO ASSIST TOBACCO- ments made by this section shall apply with and inserting ‘‘cotton and peanuts’’; and GROWING AREAS.— respect to the 1999 and subsequent crops of (2) by striking subsections (d), (e), and (f). (1) IN GENERAL.—A Governor of a tobacco- the kind of tobacco involved. (j) BURLEY TOBACCO FARM RECONSTITU- growing State shall use the amount of the SEC. 1532. TERMINATION OF TOBACCO PRODUC- TION.—Section 379 of the Agricultural Ad- block grant to the State under subsection (b) TION ADJUSTMENT PROGRAMS. justment Act of 1938 (7 U.S.C. 1379) is amend- to make grants to counties or other public or (a) DECLARATION OF POLICY.—Section 2 of private entities in the State to assist areas the Agricultural Adjustment Act of 1938 (7 ed— that are dependent on the production of to- U.S.C. 1282) is amended by striking ‘‘to- (1) in subsection (a)— bacco, as determined by the Governor. bacco,’’. (A) by striking ‘‘(a)’’; and (2) AMOUNT.—The amount of a grant paid (b) DEFINITIONS.—Section 301(b) of the Ag- (B) in paragraph (6), by striking ‘‘, but this to a county or other entity to assist an area ricultural Adjustment Act of 1938 (7 U.S.C. clause (6) shall not be applicable in the case shall be based on— 1301(b)) is amended— of burley tobacco’’; and (A) the ratio of gross tobacco sales receipts (1) in paragraph (3)— (2) by striking subsections (b) and (c). in the area to the total farm income in the (A) by striking subparagraph (C); and (k) ACREAGE-POUNDAGE QUOTAS.—Section 4 area; and (B) by redesignating subparagraph (D) as of the Act entitled ‘‘An Act to amend the Ag- (B) the ratio of all tobacco related receipts subparagraph (C); ricultural Adjustment Act of 1938, as amend- in the area to the total income in the area. (2) in paragraph (6)(A), by striking ‘‘to- ed, to provide for acreage-poundage market- (3) USE OF GRANTS.—A county or other en- bacco,’’; ing quotas for tobacco, to amend the tobacco tity that receives a grant under this sub- (3) in paragraph (7), by striking the follow- price support provisions of the Agricultural section may use the grant in a manner deter- ing: Act of 1949, as amended, and for other pur- mined appropriate by the county or entity ‘‘tobacco (flue-cured), July 1—June 30; poses’’, approved April 16, 1965 (Public Law (with the approval of the State) to assist ‘‘tobacco (other than flue-cured), October 89–12; 7 U.S.C. 1314c note), is repealed. producers and other persons that are eco- 1–September 30;’’; (l) BURLEY TOBACCO ACREAGE ALLOT- nomically dependent on the production of to- (4) in paragraph (10)— MENTS.—The Act entitled ‘‘An Act relating bacco, including use for— (A) by striking subparagraph (B); and to burley tobacco farm acreage allotments (A) on-farm diversification, alternatives to (B) by redesignating subparagraph (C) as under the Agricultural Adjustment Act of the production of tobacco, and risk manage- subparagraph (B); 1938, as amended’’, approved July 12, 1952 (7 ment; (5) in paragraph (11)(B), by striking ‘‘and U.S.C. 1315), is repealed. (B) off-farm activities such as education, tobacco’’; (m) TRANSFER OF ALLOTMENTS.—Section retraining, and development of non-tobacco (6) in paragraph (12), by striking ‘‘to- 703 of the Food and Agriculture Act of 1965 (7 related jobs; and bacco,’’; U.S.C. 1316) is repealed. S6256 CONGRESSIONAL RECORD — SENATE June 11, 1998

(n) ADVANCE RECOURSE LOANS.—Section are brought against participating or non- (3) LIMITATION.—Notwithstanding any 13(a)(2)(B) of the Food Security Improve- participating tobacco manufacturers; other provision of law, any attorney’s fees or ments Act of 1986 (7 U.S.C. 1433c–1(a)(2)(B)) is (8) who act at some future time on behalf expenses paid to attorneys for matters sub- amended by striking ‘‘tobacco and’’. of a plaintiff in civil actions to which this ject to this section shall not exceed a per (o) TOBACCO FIELD MEASUREMENT.—Section Act applies that are brought against partici- hour rate of $1,000 in addition to 200 percent 1112 of the Omnibus Budget Reconciliation pating or nonparticipating tobacco manufac- of actual out-of-pocket expenses for which Act of 1987 (Public Law 100–203) is amended turers; detailed documentation has been provided by striking subsection (c). (9) who expended efforts that in whole or in and which have been approved by the court (p) LIABILITY.—The amendments made by part resulted in or created a model for pro- or arbitration panel in such action. this section shall not affect the liability of grams in this Act; (4) RECORDS REQUIREMENT.—All records any person under any provision of law as in (10) who acted on behalf of a defendant in submitted to a court or arbitration panel effect before the effective date under sub- any of the matters set forth in paragraphs (1) pursuant to this section shall be available section (q). through (9) of this subsection; or for public inspection and reproduction for a (q) CROPS.—This section and the amend- (11) who act at some future time on behalf ments made by this section shall apply with of a defendant in any of the matters set forth period of one year from the date of adjudica- respect to the 1999 and subsequent crops of in paragraphs (1) through (9) of this sub- tion of the attorneys’ fees. the kind of tobacco involved. section. (d) SEVERABILITY.—If any provision of this (c) ATTORNEYS’ FEES. section or the application of such provision Subtitle D—Miscellaneous (1) JURISDICTION.—The determination of at- to any person or circumstance is held to be SEC. 1541. SAVINGS. torneys’ fees for compensation subject to unconstitutional, the remainder of this sec- Any savings derived as a result of this title this section shall be within the jurisdiction tion and the application of the provisions of shall be used for tobacco use prevention and of— such section to any person or circumstance cessation initiatives. (A) the court in which the action for which the claimant attorney is making a claim is shall not be affected thereby. pending; or FAIRCLOTH (AND OTHERS) (B) an arbitration panel selected by the AMENDMENT NO. 2701 parties or otherwise selected by law. REED (AND OTHERS) AMENDMENT (Ordered to lie on the table.) (2) CRITERIA.—In the determination of at- NO. 2702 Mr. FAIRCLOTH (for himself, Mr. torneys’ fees subject to this section, the court or arbitration panel shall consider— SESSIONS, Mr. MCCONNELL, and Mr. (A) The likelihood at the commencement Mr. REED (for himself, Mrs. BOXER, GRAMM) proposed an amendment to of the representation that the claimant at- Mr. WYDEN, Mr. KENNEDY, Mr. amendment No. 2437 proposed by Mr. torney would secure a favorable judgment, a DASCHLE, Mr. DURBIN, Mr. WELLSTONE, DURBIN to the bill, S. 1415, as follows: substantial settlement, or a successful nego- Mrs. FEINSTEIN, and Mr. CONRAD) pro- At the appropriate place, insert the follow- tiation towards a global settlement agree- posed an amendment to amendment ment for submission to the Congress; ing: No. 2437 proposed by Mr. DURBIN to the SEC. . ATTORNEYS’ FEES AND EXPENSES. (B) The amount of time and labor that the claimant attorney reasonably believed at the bill, S. 1415, supra; as follows: (a) FEE ARRANGEMENTS.—Subsection (c) shall apply to attorneys’ fees provided for or commencement of the representation that he At the appropriate place, insert the follow- was likely to expend on the claim; in connection with an action of the type de- ing: (C) The amount of productive time and scribed in such subsection under any— labor that the claimant attorney actually in- SEC. ll. DISALLOWANCE OF TAX DEDUCTIONS (1) court order; vested in the representation as determined FOR ADVERTISING, PROMOTIONAL, (2) settlement agreement; through an examination of contemporaneous AND MARKETING EXPENSES RELAT- (3) contingency fee arrangement; ING TO TOBACCO PRODUCT USE UN- (4) arbitration procedure; and reconstructed time records; (D) The obligations undertaken by the LESS CERTAIN ADVERTISING RE- (5) alternative dispute resolution proce- QUIREMENTS ARE MET. dure (including mediation); claimant attorney at the commencement of (6) retainer agreements; or the representation including— (a) IN GENERAL.—Part IX of subchapter B (7) other arrangement providing for the (i) whether the claimant attorney was obli- of chapter 1 of subtitle A of the Internal Rev- payment of attorneys’ fees. gated to proceed with the representation enue Code of 1986 (relating to items not de- (b) APPLICATION.—This section shall apply through its conclusion or was permitted to ductible) is amended by adding at the end to all fees paid or to be paid to attorneys withdraw from the representation; and the following: (ii) whether the claimant attorney assumed under any arrangement described in sub- an unconditional commitment for expenses ‘‘SEC. 280I. DISALLOWANCE OF DEDUCTION FOR section (a)— TOBACCO ADVERTISING, PRO- (1) who acted on behalf of a State or politi- incurred pursuant to the representation; (E) The expenses actually incurred by the MOTIONAL, AND MARKETING EX- cal subdivision of a State in connection with PENSES UNLESS CERTAIN ADVER- claimant attorney pursuant to the represen- any past litigation of an action maintained TISING REQUIREMENTS ARE MET. tation including— by a State against one or more tobacco com- (i) whether those expenses were reimburs- ‘‘(a) IN GENERAL.—No deduction shall be al- panies to recover tobacco-related expendi- able; and lowed under this chapter for any taxable tures; (ii) the likelihood on each occasion that ex- year for expenses relating to advertising, (2) who acted on behalf of a State or politi- penses were advanced that the claimant at- promoting, or marketing cigars, cigarettes, cal subdivision of a State in connection with torney would secure a favorable judgment or smokeless tobacco, pipe tobacco, roll-your- any future litigation of an action maintained substantial settlement; own tobacco, or any similar tobacco product by a State against one or more tobacco com- (F) The novelty of the legal issues before unless the taxpayer maintains compliance panies to recover tobacco-related expendi- the claimant attorney and whether the legal during such year with the advertising and tures; work was innovative or modeled after the marketing provisions of part 897 of title 21, (3) who act at some future time on behalf work of others or prior work of the claimant Code of Federal Regulations, that were pub- of a State or political subdivision of a State attorney; lished in the Federal Register on August 28, in connection with any past litigation of an (G) The skill required for proper perform- 1996. action maintained by a State against one or ance of the legal services rendered; more tobacco companies to recover tobacco- (H) The results obtained and whether those ‘‘(b) GENERAL DEFINITIONS.—For purposes related expenditures; results were or are appreciably better than of this section, any term used in this section (4) who act at some future time on behalf the results obtained by other lawyers rep- which is also used in section 5702 shall have of a State or political subdivision of a State resenting comparable clients or similar the same meaning given such term by sec- in connection with any future litigation of claims; tion 5702.’’. an action maintained by a State against one (I) Whether the original fee arrangement (b) CONFORMING AMENDMENT.—The table of or more tobacco companies to recover to- includes a fixed or a percentage fee; sections for such part IX is amended by add- bacco-related expenditures; (J) The reduced degree of risk borne by the ing after the item relating to section 280H (5) who acted on behalf of a plaintiff class claimant attorney in the representation and the following: in civil actions to which this Act applies the increased likelihood that the claimant that are brought against participating or attorney would secure a favorable judgment ‘‘Sec. 280I. Disallowance of deduction for nonparticipating tobacco manufacturers; or substantial settlement based on a chrono- tobacco advertising, pro- (6) who act at some future time on behalf logical progression of relevant developments motional, and marketing ex- of a plaintiff class in civil actions to which from the 1994 Williams document disclosures penses unless certain advertis- this Act applies that are brought against to the settlement negotiations and the sub- ing requirements are met.’’ participating or nonparticipating tobacco sequent Federal legislative process; and manufacturers; (K) Whether this Act or related changes to (c) EFFECTIVE DATE.—The amendments (7) who acted on behalf of a plaintiff in State laws increase the likelihood of success made by this section shall apply to taxable civil actions to which this Act applies that in representations subject to this section. years beginning after December 31, 1998. June 11, 1998 CONGRESSIONAL RECORD — SENATE S6257 VISION 2020 NATIONAL PARKS retary of the Interior to appoint an ad- during the session of the Senate on RESTORATION ACT visory committee to make rec- Thursday, June 11, for purposes of con- ommendations regarding activities ducting a subcommittee hearing which under the memorandum of understand- is scheduled to begin at 10:00 a.m. The MURKOWSKI (AND BUMPERS) ing, and for other purposes; and S. 2117, purposes of this oversight hearing is to AMENDMENT NO. 2703 ‘‘Perkins County Rural Water System receive testimony on the federal oil Mr. THOMAS (for Mr. MURKOWSKI, Act of 1997’’. valuation regulations of the Minerals for himself and Mr. BUMPERS) proposed Those wishing to testify or who wish Management Service. an amendment to the bill (S. 1693) to to submit written statements should The PRESIDING OFFICER. Without renew, reform, reinvigorate, and pro- write to the Subcommittee on Water objection, it is so ordered. tect the National Park System; as fol- and Power, U.S. Senate, Washington, SUBCOMMITTEE ON IMMIGRATION lows: D.C. 20510. For further information, Mr. BOND. Mr. President, I ask unan- On page 129 line 22 strike ‘‘without appro- please call James Beirne, Counsel at imous consent that the Subcommittee priation’’ and insert the following: ‘‘subject (202) 224–2564, or Betty Nevitt, Staff As- on Immigration, of the Senate Judici- to appropriation’’ sistant at (202) 224–0765. ary Committee, be authorized to meet f f during the session of the Senate on NOTICES OF HEARINGS AUTHORITY FOR COMMITTEES TO Thursday, June 11, 1998 at 2:00 p.m. to COMMITTEE ON ENERGY AND NATURAL MEET hold a hearing in room 226, Senate RESOURCES Dirksen Building, on: ‘‘Immigration Mr. MURKOWSKI. Mr. President, I COMMITTEE ON ENERGY AND NATURAL and Naturalization Service reform: The RESOURCES would like to announce for the public Mr. BOND. Mr. President, I ask unan- Service side.’’ that an oversight hearing has been The PRESIDING OFFICER. Without imous consent that the Committee on scheduled before the Full Energy and objection, it is so ordered. Energy and Natural Resources be Natural Resources Committee to con- granted permission to meet during the f sider the issue of independence of Puer- session of the Senate on Thursday, to Rico. June 11, for purposes of conducting a ADDITIONAL STATEMENTS The hearing will take place on Tues- full committee hearing which is sched- day, June 23, 1998, at 9:30 A.M. in room uled to begin at 2:00 p.m. The purpose SH–216 of the Hart Senate Office Build- of this oversight hearing is to receive E-RATE ing. For further information, please con- testimony on the Recreational Fee ∑ Ms. MOSELEY-BRAUN. Mr. Presi- tact James Beirne, counsel at (202) 224– Demonstration Program. dent, two years ago the Congress joined 2564 or Betty Nevitt, Staff Assistant at The PRESIDING OFFICER. Without together in a bipartisan manner to help (202) 224–0765. objection, it is so ordered. schools and libraries across the nation COMMITTEE ON FINANCE COMMITTEE ON ENERGY AND NATURAL give students and children access to RESOURCES Mr. BOND. Mr. President, the Fi- modern technology. The Telecommuni- Mr. CRAIG. Mr. President, I would nance Committee requests unanimous cations Reform Act of 1996 created a like to announce for the public that a consent to conduct a hearing on Thurs- new partnership between the federal hearing has been scheduled before the day, June 11, 1998 beginning at 10:00 government, state governments, school Subcommittee on Forests and Public a.m. in room 215 Dirksen. systems, and the private sector to help Land Management of the Senate Com- The PRESIDING OFFICER. Without bring all our classrooms into the 21st mittee on Energy and Natural Re- objection, it is so ordered. century. The bill expanded the univer- sources. COMMITTEE ON FINANCE sal service program—which has histori- The hearing will take place Thurs- Mr. BOND. Mr. President, the Fi- cally given people living in rural areas day, June 25, 1998 at 2:00 p.m. in room nance Committee requests unanimous the chance to purchase affordable SD–366 of the Dirksen Senate Office consent to conduct a hearing on Thurs- phone service—and created a new ‘‘e- Building in Washington, D.C. day, June 18, 1998 beginning at 10:00 rate’’ for schools and libraries. Creat- The purpose of this hearing is to re- a.m. in room 215 Dirksen. ing that partnership was the most im- ceive testimony on S. 2146, a bill to The PRESIDING OFFICER. Without portant act the 104th Congress took for provide for the exchange of certain objection, it is so ordered. elementary and secondary schools, and lands within the State of Utah. COMMITTEE ON FOREIGN RELATIONS we have yet to match that achieve- Those who wish to submit written Mr. BOND. Mr. President, I ask unan- ment in this Congress. It was one of statements should write to the Com- imous consent that the Committee on the most important steps we have mittee on Energy and Natural Re- Foreign Relations be authorized to taken toward ensuring that all our sources, U.S. Senate, Washington, D.C. meet during the session of the Senate children will have the opportunity to 20510. For further information, please on Thursday, June 11, 1998 at 10:30 and learn the kinds of skills they will need call Amie Brown or Mike Menge (202) 2:00 p.m. to hold hearings. to compete in the 21st century econ- 224–6170. The PRESIDING OFFICER. Without omy. SUBCOMMITTEE ON WATER AND POWER objection, it is so ordered. Our children need that kind of bipar- Mr. KYL. Mr. President, I would like SUBCOMMITTEE ON EMPLOYMENT AND TRAINING tisan support. When I was growing up, to announce for the public that a hear- Mr. BOND. Mr. President, I ask unan- it was possible to graduate from high ing has been scheduled before the Sub- imous consent that the Committee on school and get a job as a police officer, committee on Water and Power of the Labor and Human Resources, Sub- a firefighter, or a clerk, and earn full Committee on Energy and Natural committee on Employment and Train- enough to raise and support a family. Resources. ing, be authorized to meet for a hear- Mechanics used to train for their work The hearing will take place on Tues- ing on ‘‘Child Labor’’ during the ses- on the job. The nursing profession used day, July 14, 1998, at 2:30 P.M. in room sion of the Senate on Thursday, June to consist of women who apprenticed in SD–366 of the Dirksen Senate Office 11, 1998, at 9:30 a.m. hospitals. Building in Washington, D.C. The PRESIDING OFFICER. Without Times have changed. Now, if you The purpose of this hearing is to re- objection, it is so ordered. want to be an airline mechanic, you ceive testimony on S. 1515, ‘‘Dakota SUBCOMMITTEE ON ENERGY RESEARCH, need four years of college. Nursing is a Water Resources Act of 1997’’; S. 2111, DEVELOPMENT, PRODUCTION, AND REGULATION degree program, and there are sub-spe- to establish the conditions under which Mr. BOND. Mr. President, I ask unan- cialties of nurses who are highly and the Bonneville Power Administration imous consent that the subcommittee scientifically educated. An ad for a and certain Federal agencies may enter on Energy Research, Development, ‘‘maintenance technician’’ states the into a memorandum of agreement con- Production, and Regulation of the job requires an understanding of ‘‘basic cerning management of the Columbia/ Committee on Energy and Natural Re- principles of electricity, mechanical Snake River Basin, to direct the Sec- sources be granted permission to meet systems, and fluid power.’’ S6258 CONGRESSIONAL RECORD — SENATE June 11, 1998 Many of our schools, however, are to the FCC this year from schools and year savings to the companies from another not giving our children the kind of edu- libraries seeking to tap into the new e- aspect of the 1996 bill, a drop in the access cation they will need to compete in rate. Those applications represent mil- fees long-distance carriers must pay to local this kind of economy. An estimated 60 lions of American children counting on ones.) percent of all new jobs created in the Much of the debate over the complex tele- our help to gain the skills they need to communications bill concerned the balance year 2000 will require skills held by remain competitive in the next cen- to be struck between deregulating the com- only 22 percent of new workers. Ac- tury. What are we going to tell them if munications industry—thus opening up the cording to the Wall Street Journal, the e-rate crumbles under the weight of chance for phone companies to make lots ‘‘Thousands of people are being turned partisan politics? How are we going to more money—and imposing some obligations down for factory work by companies explain to them why they do not know on them in return. One such obligation was that are actively recruiting,’’ because how to use a computer? to safeguard equal access, including to new they lack the requisite math, commu- I hope we will not have to do that. I technologies. After endless maneuvering and nications, and computer skills. hope we can all come together, with a veto threat by President Clinton if the bill Given these facts, one would think emerged without them, provisions mandat- the same bipartisanship and coopera- ing ‘‘access to advanced telecommunications that on the eve of the implementation tion we shared two years ago, to fix services for schools, health care and librar- of the e-rate we created two years ago, this program, resolve legitimate con- ies,’’ explicitly including ‘‘classrooms,’’ were policy makers would be rallying cerns, and ensure that the e-rate be- made part of the subsidies for ‘‘universal around the new discounts for schools comes available to schools and librar- service.’’ Telephone companies understand- and libraries and celebrating the pro- ies across the country. ably balk at any creeping enlargement of the gram’s inauguration. Instead, duplicity Members of both parties have criti- universal service concept, which requires and political opportunism have com- cized the FCC for the way it has imple- them to offer phone service at average rates bined to cast doubt on the future of the even in high-cost, hard-to-wire rural areas— mented the program, and I do not and, inevitably to absorb the cost by charg- e-rate. doubt that mistakes have been made. I The duplicity began when certain ing slightly higher phone rates across the only hope we can put aside the partisan board. telephone companies decided to add a sniping and figure out a constructive One thrust of deregulation was to make new line item to customers’ phone solution to the problem we face. We those subsidies more explicit—an advantage bills—a ‘‘national access charge,’’ or a ought to be proud of what we accom- for companies, which could compete more ‘‘universal connectivity fee.’’ When plished two years ago when we created openly on basic rates, and also for consum- customers call their phone companies the e-rate. Let us not now trade that ers, who could see where their money was going. But spelling out a long-hidden subsidy asking about this new charge, it is my accomplishment for short-term politi- understanding they are often told it also exposes it to political debate. Such de- cal gain. bate need not doom the e-rate, which pulls was the FCC who mandated that this Mr. President, I ask that an editorial new charge appear on their phone bills, considerable support in opinion polls, any from yesterday’s Washington Post on more than it is likely to doom the popular or that it was the Congress who levied this subject be printed in the record. rural subsidies. Nor should it. Squelching it this new tax on them. The editorial follows: would be the real ‘‘stealth’’ move.∑ Mr. President, that is disingenuous [Washington Post, Wed., June 10, 1998] f at best. The FCC did order long dis- SHOULD WE WIRE SCHOOLS? SISTER MONICA KOSTIELNEY tance phone companies to pay into the Sometime this week the Federal Commu- universal service fund, in part to pay nications Commission will vote on whether CELEBRATES 25 YEARS WITH for the new discounts for schools and to suspend a small program, passed as part of MICHIGAN CATHOLIC CON- libraries. The FCC also, however, or- the 1996 Telecommunications Act, that col- FERENCE dered a reduction in the access charges lects money from long-distance phone com- ∑ Mr. ABRAHAM. Mr. President, I rise long distance companies must pay for panies and uses it to offer discounts on the today to recognize and honor a very using local phone networks—fees that cost of hooking up schools and libraries to the Internet. The program, known as the ‘‘e- important woman in the Michigan reli- can account for 40 or 50 percent of the gious community. Sister Monica cost of every long distance call. The re- rate,’’ has been contentious from the start, but lately, as it prepares to begin actually Kostielney, R.S.M. is celebrating 25 ductions in access charges were greater considering applications for the $650 million years with the Michigan Catholic Con- than the new universal service charges. collected so far, it has become the focus of ference this year. Presently, she serves One would think, therefore, that long intense pressure. as President and Chief Executive Offi- distance bills would drop as a result. Four senators with a say over the FCC’s cer of the Conference, however, her list Have they? Have the phone companies own budget sent a letter demanding that it of accomplishments extends far beyond refund the program entirely. Some have passed the savings from the access her work in this capacity. charge reductions on to their cus- hinted that the commission risks having its own budget zeroed out unless it kills the Prior to joining the Catholic Con- tomers? ference, Sister Monica taught elemen- No. The companies have not passed schools and libraries program. Others threat- en investigation of what they call a ‘‘stealth tary and secondary school for thirteen on all the savings from the access tax’’ imposed with questionable legality by years. She began her career with the charge reductions, and have instead an unelected agency or, alternatively, a Catholic Conference of Michigan as a raised customers’ bills in order to gen- ‘‘Gore tax’’ designed to advance the vice staff member in 1972. She served as Ex- erate revenue for the universal service president’s presidential prospects. fund. They then blame the FCC or Con- Why the sudden fuss over a $2 billion pro- ecutive Vice-President for public af- gress, and customers are understand- gram that passed all the usual legislative fairs from 1983 until 1994, and has ably confused, concerned, and upset. hurdles in orthodox fashion two years ago? served as President and CEO since The chorus of customer complaints The flurry began when several long-distance then. For 25 years, in addition to her now appears to be rattling the biparti- telephone providers said they would begin service to the Michigan Catholic Con- adding a ‘‘universal connectivity fee’’ to in- ference, Sister Monica has advised san coalition that came together two dividual monthly telephone bills to cover the years ago to create the e-rate. Repub- many on important issues affecting all schools and libraries program and other sub- facets of society. She has given self- lican leaders have derided the new sidies, such as the generations-old (and wide- charge on phone bills as an ‘‘illegal ly supported) subsidy for keeping phone serv- lessly of her time to many other orga- FCC tax,’’ or a ‘‘Gore tax,’’ trying to ice affordable in hard-to-serve rural areas. nizations and charities including, the pin the phone bill increases on the Vice The appearance of what looks like a new tax Midwest Hispanic Catholic Commis- President. on phone bills—even if it only spells out sub- sion, the Michigan Department of Edu- I am disappointed. We have gone sidies previously included in the overall cation Legislative Advisory Council, from partnership to partisanship. We bill—unnerves many legislators who support the Governor’s Blue Ribbon Welfare have gone from cooperation to con- the subsidies in theory. Not everyone real- Reform Committee and the Board of izes that the schools and libraries fund con- Directors of St. Lawrence Hospital and frontation. We have gone from think- stitutes only a third of the new fee. (The ing about our children and our future FCC and the companies are still sparring Healthcare Services Divisional Board. to trying to score political points. over whether the extra charges were even From 1980 to 1984, Sister Monica co- We can do better than that. Thirty justified; the commission says the fees were hosted ‘‘Reel to Reel,’’ a weekly Sun- thousand applications have poured in specifically calibrated to balance year-by- day television show produced by the June 11, 1998 CONGRESSIONAL RECORD — SENATE S6259 Diocese of Lansing. These are just a who is retiring at the end of June, 1998. dented target-by-target scrub of the few examples of Sister Monica’s un- Since 1996, General Habiger has served Single Integrated Operational Plan wavering devotion to her community as the Commander in Chief of United (SIOP) helped shape the conceptual and and the entire State of Michigan. States Strategic Command, Offutt Air practical character of post-Cold War I want to join with Sister Monica’s Force Base, Nebraska. US nuclear weapons policy that will be friends and family in congratulating General Habiger’s career in the mili- instrumental in decisions for years to her on this very special occasion. She tary began in 1959 when he enlisted as come. is a remarkable woman whom the state an infantryman in the U.S. Army. Convinced that the Nation’s security of Michigan is fortunate to benefit After his tour in Fort Benning, Geor- is best served by a stable strategic re- from. ∑ gia, he attended the University of lationship with Russia, General f Georgia earning a Bachelor of Science Habiger was a forceful spokesman for degree in 1963. After college, Gene the START II Treaty and Defense De- TRIBUTE TO FRANKIE WELCH joined the Air Force and upon comple- partment Cooperative Threat Reduc- ∑ Mr. HOLLINGS. Mr. President, I wish tion of Officer Training School in Sep- tion activities. Twice, he accompanied to bring to the Senate’s attention a tember 1963, he was selected as a dis- the Secretary of Defense to Moscow to milestone that has particular relevance tinguished graduate. meet with the Russian Defense Min- to this body. Mrs. Frankie Welch, who Soon after leaving Officer Training ister and Commander-in-Chief of the is nationally recognized for her artistic School, as a young Captain and B–52 Strategic Rocket Forces stressing the and original scarf and tie designs, is Aircraft Commander, Gene flew 150 political, economic, and military im- celebrating 30 years of fashion design combat missions and participated in portance of ratifying START II for this month. Frankie was born in Geor- the B–52 Arc Light operations during both the United States and Russia. gia, but I am pleased to say she has the Vietnam War. In the early 1980s, he Gene’s work on a post-START II nu- strong ties to South Carolina, where commanded the 325th Bombardment clear arms control agenda was re- she graduated with a degree from Squadron and later served as assistant flected in national policy, and helped Furman University in Greenville. It deputy commander for operations, 92nd form the basis for portions of the was at Furman that she met her late Bombardment Wing, Fairchild Air START III framework announced at husband, William Welch. One of their Force Base, Washington. the Presidential Summit in Helsinki, daughters chose to continue the family In the late 1980s, Gene commanded in March 1997. tradition and also received a Furman the 379th Bombardment Wing at Undoubtedly, General Habiger has diploma. Wurtsmith Air Force Base, Michigan, been the unparalleled leader in expand- Frankie Welch has designed many and the 2nd Bombardment Wing at ing military-to-military contacts with memorable scarves and ties. In the Barksdale Air Force Base, Louisiana. Russian counterparts, particularly the 1980s, she designed a patriotic scarf for In the 1990s, Gene’s command experi- Strategic Rocket Forces. These actions the United States Senate. She has de- ence served him well as vice com- established a more stable relationship signed ties for Presidents Lyndon mander, Headquarters Air Education with Russian leadership. As evidence of Johnson, Richard Nixon, Gerald Ford, and Training Command at Randolph the high regard and confidence in Jimmy Carter, Ronald Reagan, George Air Force Base, Texas; and as Deputy which General Habiger is viewed in Bush, and Bill Clinton. Mrs. Welch also Chief of Staff for Personnel, Head- Russia, he was the first non-Russian to designed a gown for First Lady Betty quarters U.S. Air Force, Washington, enter a Russian nuclear weapons stor- Ford, which Mrs. Ford donated to the D.C. age area. His ceaseless efforts in estab- Smithsonian Institution’s First Ladies The apex of General Habiger’s career lishing good relations with Russia have Collection in 1976. Frankie and Mrs. came with his current assignment as significantly improved communication Ford remained good friends; last Commander in Chief, United States and understanding. For the first time month, on the occasion of Betty Ford’s Strategic Command, Offutt Air Force in history, as Commander in Chief of 80th birthday, Frankie was one of the Base, Nebraska. The command has re- the US nuclear arsenal, he can pick up speakers at the Ford Museum in Grand sponsibility for all U.S. Air Force and the phone and talk directly to senior Rapids. U.S. Navy strategic nuclear forces. Russian military leadership. Frankie Welch is no ordinary fashion These powerful forces act as this Na- General Habiger and his wife, Bar- designer. She often employs her talents tion’s strategic deterrent. bara, have two sons, Karl and Kurt. I to produce patriotic garments, and her During his command at am sure Gene and Barbara have ambi- designs demonstrate an exemplary love USSTRATCOM, General Habiger made tious plans for their life after military of our country. She has produced origi- major contributions to the national se- service and I hope they make the most nal and widely admired fabric designs curity of the United States by estab- of this time. From a private in the U.S. for such revered institutions as the St. lishing the parameters for future stra- Army to a four star general in the U.S. Paul’s Cathedral in London, the Cor- tegic forces and possible arms control Air Force, General Habiger has served coran Gallery of Art, the White House, agreements. His leading role in manag- our military and the Nation with great and the U.S. Capital. Frankie is also a ing a stable drawdown of nuclear forces honor and distinction. I have the pleas- philanthropist: she recently began the helped foster mutual understanding ure of calling Gene Habiger a friend Frankie Welch Scholarship for out- and cooperation with Russia. In addi- and I want to thank him for his con- standing students of fashion design. tion, his cooperative efforts with the tribution to our nation’s security.∑ Mr. President, I think it appropriate Department of Energy shaped the proc- f to honor a woman who has so often ess by which the United States will turned her talents to patriotic themes maintain the long term safety and reli- DOVER HIGH SCHOOL TEACHER and who has attained national and ability of its nuclear weapons stock- AND NATIONAL FEDERATION OF international accolades. It is with pile. As the Department of Energy’s PRESS WOMEN AWARD WINNER— great pride that I thank Frankie Welch customer, General Habiger insured the PATTY RICHARDSON HINCHEY for honoring our country and congratu- Stockpile Stewardship Program is pro- ∑ Mr. BIDEN. Mr. President, as we late her on thirty years of success.∑ grammed and funded to develop the focus on improving our education sys- f new tools, technologies, and concepts tem on the national state and local lev- to ensure our strategic forces remain els, it is my pleasure to offer congratu- THANKING GENERAL EUGENE E. safe, effective, ready, and responsive to lations to an award-winning teacher HABIGER FOR CAREER SERVICE changing needs. from Dover, Delaware who exemplifies IN THE UNITED STATES AIR In addition, Gene was a premier play- excellence in education for her stu- FORCE er in shaping our strategic force struc- dents, her community, my home state ∑ Mr. KEMPTHORNE. Mr. President, I ture. His team completed a very de- of Delaware, and indeed, this nation. rise to say thank you to a patriot and tailed analysis of United States’ Stra- For the second consecutive year, one of this nation’s finest military tegic Force Structure options reaching Patty Richardson Hinchey received the leaders, General Eugene E. Habiger, far beyond START II. This unprece- second place award in the category of S6260 CONGRESSIONAL RECORD — SENATE June 11, 1998 Achievement/Research—Faculty Ad- close to and how many people both wishers to say, ‘‘Happy Anniversary, viser of Student Publications for Sec- trust and respect her.’’ Harley! You’re still ‘king of the road!’’ ondary Schools. This award is given by Another student, Kate Basone, Ad- f the prestigious National Federation of vertising Editor, said: ‘‘Mrs. Hinchey NAMING OF YEOMAN FIRST CLASS Press Women. The award recognizes inspired the students to produce work STEPHEN R. DYKEMA AS THE the outstanding high school journalism that reflected their best effort. She 1997 ENLISTED PERSON OF THE advisers/teachers. would not accept articles that she felt Patty also won first place in the were not up to the standards of ‘‘The YEAR FOR THE U.S. COAST State of Delaware competition for the Senator’’ which she established. There- GUARD past two years in the same category fore, because of her constant pushing ∑ Mr. HOLLINGS. Mr. President, I rise from the Delaware Press Women, which and sometime pulling, many students today to recognize a fellow South Caro- made her eligible for the national found themselves producing some of linian for outstanding service and dedi- award. their best work.’’ cation to this Nation. I take great What my colleagues might find most Patty is not only a talented teacher, pleasure in congratulating Yeoman interesting and ironic—the name of the she is a terrific mother to her daughter First Class Stephen R. Dykema for his student newspaper at Dover High Andrea, who is student at the Univer- selection as the 1997 Enlisted Person of School for which Patty is the faculty sity of Delaware, and a career military the Year for the U.S. Coast Guard. adviser is ‘‘The Senator.’’ The 24-page wife to the now retired Lieutenant Each day more than 25,000 enlisted award-winning issue captivated the Colonel John Hinchey. men and women put their lives and pulse of student activities, highlighted It is with great pleasure that I con- safety on the line to carry out the the history of soon-to-be graduates, gratulate Patty Richardson Hinchey Coast Guard’s diverse missions. The spotlighted student leadership during for her outstanding accomplishments Coast Guard plays a critical role as an their four years at Dover High School, as an awarding-winning teacher and armed service in defending our Nation congratulated Athletes of the Year, faculty adviser for the Dover High and maintaining national security. In and featured articles about teachers School newspaper ‘‘The Senator.’’∑ addition, the Coast Guard annually who make a difference. f conducts thousands of fisheries en- Patty’s work on the student news- forcement boardings; prevents tons of paper goes well beyond the final after- COMMEMORATION OF HARLEY- cocaine and marijuana from reaching noon school bell. She and her students DAVIDSON’S 95TH ANNIVERSARY the streets; gives safety instruction to calculated spending more than 6,000 ∑ Mr. ASHCROFT. Mr. President, I am more than one-half million rec- hours in the last four years putting proud to have this opportunity to rec- reational boaters; and saves about 5,000 editions of ‘‘The Senator’’ to bed. Even ognize a company that truly reflects lives. The American public has learned more remarkable, due to a school-re- the spirit, goals and achievements of a to depend on the Coast Guard’s service, lated accident leaving Patty unable to true ‘‘American success story’’ as both close to home and in trouble spots walk, she worked from her home with hailed by President Ronald Reagan in around the world. the students to get the final issue to 1987. Today, Harley-Davidson Motor That service is built on a tradition of press on time. Company is an even more outstanding dedication by Coast Guard enlisted per- I have spoken often about the need in example of American ingenuity and sonnel. Yeoman First Class Stephen R. this day and age to give young people performance. They have seen record Dykema is an individual who epito- an ‘‘excuse’’ to stay on the road to earnings 31 of the last 32 quarters—a mizes that tradition. Petty Officer achievement, stay in school, stay away prime example of their strength as a Dykema was selected as the 1997 En- from alcohol, drugs and gangs, and business. They have seen 32 consecu- listed Person of the Year because of his stay off the streets. Student news- tive quarters of record sales—clearly exemplary military bearing, leadership papers, like Dover High School’s, and demonstrating the loyalty of their con- ability and work performance. He cur- teachers like Patty Hinchey, are pro- sumer base. rently is assigned to the Training Cen- viding these students with that valu- Harley-Davidson produces its entire ter in Cape May, New Jersey. However, able ‘‘excuse.’’ This is positive peer line of the very popular Sportster mo- he has spent much of his time assigned pressure, and our country needs more torcycle in Kansas City, Missouri. to the cutter Madrona, a buoy tender of it. The students know they have to They opened the doors of this facility stationed in my hometown of Charles- keep their grades up, get their work months ahead of schedule, and are al- ton. done on strict deadlines, and keep out ready employing hundreds of Missou- Throughout his nine-year Coast of trouble or else they will not experi- rians. This is evidence of the positive Guard career, Petty Officer Dykema ence the thrill and pride of seeing their path of growth and expansion of Har- has received numerous medals and byline on an article they researched ley-Davidson. The U.S. market share commendations. But I’d like to high- and wrote. for Harley continues to grow; today it light just one incident that really So, I want to thank Patty for provid- is 56 percent. Harley also has a great shows why he has earned the honor of ing these award-winning students the future in the international market- being named as Enlisted Person of 1997. opportunity to be their very best and place and the company is seeing in- During one of the Madrona’s longer de- strive for excellence in their work. The creasing demand for its products in Eu- ployments that year, a box of mail was lessons and values they have learned rope, Japan, Australia, and other coun- lost. Among the box’s content were working on the school newspaper will tries. bills, family letters, care packages, and serve them well throughout their Harley has long been a leader in de- Father’s Day cards—all those routine lives—the lessons of deadlines, respon- sign and safety standards. As early as types of correspondence upon which a sibility, accountability, how to com- 1921, Harley-Davidson bikes incor- sailor’s morale depends. Petty Officer municate verbally and in writing, and porated advancements that are still in Dykema swung into action, launching most importantly how to get along use today. Twenty years later, during a personal search for the missing box of with and respect other people. World War II, Harley devoted its entire mail. His documentation of the box’s I could go on about how impressed I output of motorcycles to the war effort history was so thorough that the day am with Patty, but listen to what her earned the coveted Army-Navy ‘‘E’’ after it was released, the unit that had students say about her. The Editor-in award for excellence in wartime pro- received the mail called to make ar- Chief of ‘‘The Senator’’ said: ‘‘Mrs. duction. rangements for getting the box to Hinchey is an inspirational, talented, In many ways, Harley-Davidson has Charleston. creative, hard-working, and most im- freed generations of American rider to Petty Officer Dykema also is one of portantly, loving teacher. I am cur- enjoy this country by motorcycle. As those rare individuals who finds time rently a senior and have been in her Harley-Davidson approaches its hall- to contribute to his shipmates and class since my freshman year. Over mark 95th anniversary as a producer of community. I’m told that he has used this time, I have been able to observe quality American goods, I want to be his personal time to help fellow crew- how many students she has become among the first of the long list of well members repay overpayments and June 11, 1998 CONGRESSIONAL RECORD — SENATE S6261 helped people with their travel claims HCFA also requires all home health petition being selected as finalists and housing problems. He also has been care agencies to buy surety bonds re- from more than 2,000 entries from involved in helping those less fortunate gardless of their credit history, where- across the United States. with clothing and food and plays the as in Florida those agencies with at Last Friday, Secretary of the Navy keyboard and sings every Sunday at least one year in the Medicare program John Dalton announced the Oak Lawn his church. and no payment history problems were students’ proposal to name the Navy’s In short, Yeoman First Class Stephen exempted. HCFA also requires these next oceanographic ship the U.S.S. Dykema has earned the recognition he companies to secure bonds every year Bruce Heezen was the winner of this has received as Enlisted Person of 1997. regardless of performance. These exces- competition. Heezen was a pioneer in This young man is a credit to the Coast sive requirements and costs will push mapping the ocean floor who died Guard, to South Carolina, and to this many smaller, freestanding home aboard a Navy submarine taking him Nation.∑ health agencies out of business. If to look for the first time at the ocean f these companies are forced to shut terrain. SUPPORT OF S.J. RES. 50 down, the elderly and disabled will lose I would like to extend my warmest these essential services. For, this rule congratulations to these bright stu- Mr. FRIST. Mr. President, I rise ∑ dents and their teacher for their great today in support of S.J. Res. 50, which should prevent fraud, yet it should not achievement. I share with their fami- I joined the Senator from Missouri, Mr. penalize the law-abiding companies for the abuses of less than 1% of the agen- lies and community in recognizing the BOND, in introducing. This resolution expresses the Senate’s disapproval of cies. fabulous work they did in terms of con- the rule submitted by the Health Care Since this rule submitted by HCFA ducting extensive group research and a Financing Administration (HCFA) on seems to impose conditions that go be- wide range of individual projects. I also June 1, 1998, which requires the acqui- yond those bonding companies bear in commend them for enthusiastically sition of surety bonds for home health the course of their normal business, sharing their discoveries and knowl- agencies under the Medicare and Med- many surety companies are not offer- edge with other schools in the area to icaid programs. HCFA’s rule endangers ing bonds to Medicare home health educate their fellow students.∑ the existence of small and non-hospital agencies. Even those offering bonds are f creating a prohibitive cost or demand- based home health agencies because of EXPANSION OF THE SEABORG ing collateral equal to the face value of the excessive expenses and require- CENTER AT NORTHERN MICHI- the bond or personal guarantees that ments that are created by this rule. I GAN UNIVERSITY am concerned that patients will lose exceed the face value of the bond. Be- Mr. ABRAHAM. Mr. President, I rise access to agencies where they can at- cause of the effects of this rule, small ∑ today to recognize the expansion of the tain home health services and that and non-hospital based agencies now many employees will lose jobs because risk loss of their Medicare provider Glenn. T. Seaborg Center for Teaching, of the financial stress that is created number, and their employees and Medi- Learning Science and Mathematics at by this rule. care patients can also be adversely ef- Northern Michigan University. On Even the two Congressional leaders, fected. Thursday, June 11, 1998, a PETE STARK and KAREN THURMAN, who The capitalization requirement in groundbreaking will take place for the introduced the surety bond regula- HCFA’s proposal creates a barrier to new complex. tions, realize that the requirements market entry because entry is based on The Seaborg Center is named for have gone beyond the original intent of factors such as overhead costs, loca- Nobel Laureate Dr. Glenn T. Seaborg of Congress. The initial requirement sys- tion, profit margins, and competition the Upper Peninsula of Michigan. Dr. tem was based on the successful Medic- in the area. Seaborg is perhaps the most important aid program in Florida, yet the new re- With all of these expenses and re- scientist of his time. A native of quirements proposed by HCFA do not quirements, one would assume that Ishpeming, he was co-discoverer of Plu- only penalize potentially harmful pro- only health care agencies that have tonium, ten elements and more than viders but also many of the health care abused the system would be required to 100 isotopes. Dr. Seaborg’s list of agencies that deliver essential high- abide by this rule. Yet, this system pe- achievements extends far beyond these quality care. HCFA’s proposal differs nalizes small home health care agen- discoveries, therefore, it is quite appro- from the successful Florida model in cies that have been serving the elderly priate for this educational facility to many ways. In Florida, bond require- and disabled with high-quality for be named after him. The Center will ments were required to be capped at years. This rule should prevent fraud, provide educational institutions at all $50,000, yet agencies under the HCFA not limit the access to care for those levels with materials, consultative proposal must purchase 15 percent of serviced by the Medicare and Medicaid services and training in math and its Medicare reimbursement the pre- programs. Because this rule will hurt science education. It serves the entire vious year or $50,000 worth of bonds, many small home health care agencies Upper Peninsula of Michigan, over 56 whichever is greater. with these exorbitant expenses and re- school districts from the Northern A report done by the United States quirements, and therefore cause many Michigan University campus and from Small Business Administration in its elderly and disabled people to lose ac- three satellite centers. April 15, 1998 letter asking HCFA to re- cess to health care, I strongly suggest I personally visited the original facil- move the 15 percent provision in the that this rule submitted by HCFA be ity and recognized the importance of surety bond regulation recognizes that reworked with consideration given to obtaining funding to upgrade the facil- HCFA failed to comply with the Regu- these responsible, small health care ity. It is for this reason that I submit- latory Flexibility Act, which requires providers that provide essential serv- ted a request for funding. I am very agencies to account for the impact of a ices for thousands of U.S. citizens.∑ pleased to see that this project is get- proposal on all small entities and to f ting underway. It could not be happen- consider alternatives to reduce the bur- ing at a more exciting time, in light of den on those agencies. This report USS ‘‘BRUCE HEEZEN’’ Northern Michigan University’s up- states that HCFA did not conduct regu- ∑ Mr. CHAFEE. Mr. President, I would coming centennial celebration. I ex- latory flexibility analysis of the pro- like to share with my colleagues the tend my best wishes and congratula- posal’s impact on small entities. HCFA tremendous news of the success of a tions to everyone involved with mak- was not monitoring the impact of this group of nine fifth grade students from ing the Seaborg Center project pos- regulation on all small home health Rhode Island. These students won the sible. I know it will be a great success.∑ providers but only those with ‘‘aber- U.S. Navy’s national competition to be f rant billing practices.’’ Therefore, the first group of civilians ever granted many of the high-quality small home the privilege of naming a United States VISION 2020 NATIONAL PARKS health care agencies are being pushed Navy ship. These diligent young people RESTORATION ACT out of the health care sector because of from Oak Lawn Elementary School in Mr. THOMAS. Mr. President, I ask the outrageous bond requirements. Cranston overcame extraordinary com- unanimous consent that the Senate S6262 CONGRESSIONAL RECORD — SENATE June 11, 1998 now proceed to the consideration of ations of the National Park System account (but of any unit of the National Park System for calendar No. 397, S. 1693. no later than January 1 of each year), each purposes of scientific study. The PRESIDING OFFICER. Without park superintendent shall develop and make (b) CRITERIA.—A request for use of a unit of available to the public the budget for the cur- objection, it is so ordered. the National Park System under subsection (a) rent fiscal year for that park. The budget shall may only be approved if the Secretary deter- The clerk will report. include, at a minimum, funding allocations for mines that the proposed study— The legislative clerk read as follows: resource preservation (including resource man- (1) is consistent with applicable laws and Na- A bill (S. 1693) to renew, reform, reinvigo- agement), visitor services (including mainte- tional Park Service management policies; and rate, and protect the national parks. nance, interpretation, law enforcement, and search and rescue) and administration. The (2) will be conducted in a manner as to pose The PRESIDING OFFICER. Is there budget shall also include allocations into each no significant threat to or broad impairment of objection to the immediate consider- of the above categories of all funds retained park resources or public enjoyment derived from ation of the bill? from fees collected for that year, including but those resources. There being no objection, the Senate not limited to special use permits, concession (c) FEE WAIVER.—The Secretary may waive proceeded to consider the bill, which franchise fees, and recreation use and entrance any park admission or recreational use fee in fees. order to facilitate the conduct of scientific study had been reported from the Committee under this section. on Energy and Natural Resources, with TITLE II—NATIONAL PARK SYSTEM RE- SOURCE INVENTORY AND MANAGEMENT SEC. 206. INTEGRATION OF STUDY RESULTS INTO an amendment to strike all after the MANAGEMENT DECISIONS. enacting clause and inserting in lieu SEC. 201. PURPOSES. The purposes of this title are— The Secretary shall take such measures as are thereof the following: necessary to assure the full and proper utiliza- (1) to more effectively achieve the mission of S. 1693 tion of the results of scientific study for park the National Park Service; management decisions. In each case in which a Be it enacted by the Senate and House of Rep- (2) to enhance management and protection of park resource may be adversely affected by an resentatives of the United States of America in national park resources by providing clear au- action undertaken by the National Park Service, Congress assembled, thority and direction for the conduct of sci- the administrative record shall reflect the man- entific study in the National Park System and SECTION 1. SHORT TITLE. ner in which unit resource studies have been to use the information gathered for management This Act may be cited as the ‘‘Vision 2020 Na- considered. tional Parks System Restoration Act’’. purposes; (3) to ensure appropriate documentation of re- SEC. 207. CONFIDENTIALITY OF INFORMATION. SEC. 2. DEFINITIONS. source conditions in the National Park System; Information concerning the nature and loca- As used in this Act, the term— (4) to encourage others to use the National tion of a park resource which is endangered, (1) ‘‘Secretary’’ means the Secretary of the In- Park System for study to the benefit of park threatened, rare, or commercially valuable, or terior, and management as well as broader scientific value, for an object of cultural patrimony within a (2) ‘‘park’’ or ‘‘national park’’ means a unit where such study is consistent with the Act of unit of the National Park System, may be with- of the National Park System. August 25, 1916 (39 Stat. 535; 16 U.S.C. 1, 2–4); held from the public in response to a request TITLE I—NATIONAL PARK SERVICE CA- and under section 552 of title 5, United States Code, REER DEVELOPMENT, TRAINING AND (5) to encourage the publication and dissemi- unless the Secretary determines that— MANAGEMENT nation of information derived from studies in (1) disclosure of the information would further SEC. 101. PROTECTION, INTERPRETATION AND the National Park System. the purposes of the park unit in which the re- RESEARCH IN THE NATIONAL PARK SEC. 202. RESEARCH MANDATE. source is located and would not create a sub- SYSTEM. The Secretary is authorized and directed to stantial risk of harm, theft, or destruction of the Recognizing the ever increasing societal pres- assure that management of units of the National resource, including individual specimens of any sures being placed upon America’s unique natu- Park System is enhanced by the availability and resource population; and ral and cultural resources contained in the Na- utilization of a broad program of the highest (2) disclosure is consistent with other applica- tional Park System, the Secretary shall contin- quality science and information. ble laws protecting the resource. ually improve the ability of the National Park SEC. 203. COOPERATIVE AGREEMENTS. Service to provide state-of-the art management, TITLE III—PROCEDURES FOR ESTABLISH- (a) COOPERATIVE STUDY UNITS.—The Sec- protection, and interpretation of and research MENT OF NEW UNITS OF THE NATIONAL retary is authorized and directed to enter into PARK SYSTEM on the resources of the National Park System. cooperative agreements with colleges and uni- SEC. 102. NATIONAL PARK SERVICE EMPLOYEE versities, including but not limited to land grant SEC. 301. STUDIES OF AREAS FOR POTENTIAL IN- TRAINING. schools, in partnership with other Federal and CLUSION IN THE NATIONAL PARK SYSTEM. The Secretary shall develop a comprehensive State agencies, to establish cooperative study training program for employees in all profes- units to conduct multi-disciplinary research and Section 8 of Public Law 91–383 (16 U.S.C. 1a– sional careers in the work force of the National develop integrated information products on the 5) is amended— Park Service for the purpose of assuring that resources of the National Park System, or the (1) in subsection (a)— the work force has available the best, up-to-date larger region of which parks are a part. (A) by inserting ‘‘GENERAL AUTHOR- knowledge, skills and abilities with which to (b) REPORT.—Within one year of the date of ITY.—’’ after ‘‘(a)’’; manage, interpret and protect the resources of enactment of this title, the Secretary shall re- (B) by striking the second through sixth sen- the National Park System. port to the Committee on Energy and Natural tences; Resources of the United States Senate and the SEC. 103. MANAGEMENT DEVELOPMENT AND (C) by striking ‘‘For the purposes of carrying TRAINING. Committee on Resources of the House of Rep- out’’ and inserting the following: The Secretary shall develop a clear plan for resentatives on progress in the establishment of ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— management training and development, whereby a comprehensive network of such college and For the purposes of carrying out’’; and career, professional National Park Service em- university based cooperative study units as will ployees from any appropriate academic field provide full geographic and topical coverage for (2) by inserting after subsection (a) the follow- may obtain sufficient training, experience, and research on the resources contained in units of ing: advancement opportunity to enable those quali- the National Park System and their larger re- ‘‘(b) STUDIES OF AREAS FOR POTENTIAL INCLU- fied to move into park management positions, gions. SION IN THE NATIONAL PARK SYSTEM.— including explicitly the position of park super- SEC. 204. INVENTORY AND MONITORING PRO- ‘‘(1)(A) At the beginning of each calendar intendent. GRAM. year, the Secretary shall submit to the Commit- SEC. 104. PARK BUDGETS AND ACCOUNTABILITY. The Secretary shall undertake a program of tee on Energy and Natural Resources of the (a) STRATEGIC PLANS.—Each unit of the Na- inventory and monitoring of National Park Sys- United States Senate and the Committee on Re- tional Park System shall prepare and make tem resources to establish baseline information sources of the United States House of Represent- available to the public a 5-year strategic plan and to provide information on the long-term atives a list of areas recommended for study for and an annual performance plan. Such plans trends in the condition of National Park System potential inclusion as new units in the National shall reflect the National Park Service policies, resources. The monitoring program shall be de- Park System. goals and outcomes represented in the Service- veloped in cooperation with other Federal mon- ‘‘(B) If the Secretary determines during a spe- wide Strategic Plan, prepared pursuant to the itoring and information collection efforts to en- cific calendar year that no areas are rec- provisions of the Government Performance and sure a cost-effective approach. ommended for study for potential inclusion in Results Act (Public Law 103–62). SEC. 205. AVAILABILITY FOR SCIENTIFIC STUDY. the National Park System, the Secretary is not (b) PARK BUDGET.—As a part of each park’s (a) IN GENERAL.—The Secretary may solicit, required to submit the list referenced in sub- annual performance plan prepared pursuant to receive, and consider requests from Federal or paragraph (A). subsection (a) of this section, following receipt non-Federal public or private agencies, organi- ‘‘(2) In developing the list submitted under of each park’s appropriation from the Oper- zations, individuals, or other entities for the use this subsection, the Secretary shall consider— June 11, 1998 CONGRESSIONAL RECORD — SENATE S6263 ‘‘(A) areas that have the greatest potential for ‘‘(8) The Secretary shall complete a study of tice of its availability at least once in local or meeting the established criteria of national sig- an area for potential inclusion in the National national newspapers or trade publications, and/ nificance, suitability, and feasibility; Park System within three years after the date or the Commerce Business Daily, as appropriate, ‘‘(B) themes, sites, and resources not ade- funds are made available for the study. and shall make the prospectus available upon quately represented in the National Park Sys- ‘‘(c) LIST OF PREVIOUSLY STUDIED AREAS WITH request to all interested parties. tem; and HISTORICAL OR NATURAL RESOURCES.— (c) PROSPECTUS.—The prospectus shall in- ‘‘(C) public proposals and Congressional re- ‘‘(1) At the beginning of each calendar year, clude, but need not be limited to, the following quests. the Secretary shall submit to the Committee on information: ‘‘(3) Nothing in this subsection shall limit the Energy and Natural Resources of the United (1) the minimum requirements for such con- authority of the Secretary to conduct prelimi- States Senate and to the Committee on Re- tract as set forth in subsection (d); nary planning activities, including— sources of the United States House of Represent- (2) the terms and conditions of any existing ‘‘(A) the conduct of a preliminary resource as- atives— concession contract relating to the services and sessment; ‘‘(A) a list of areas that have been previously facilities to be provided, including all fees and ‘‘(B) collection of data on a potential study studied under this section that contain pri- other forms of compensation provided to the area; marily historical or cultural resources, but have United States by the concessioner; ‘‘(C) provision of technical and planning as- not been added to the National Park System; (3) other authorized facilities or services sistance; and which may be provided in a proposal; (4) facilities and services to be provided by the ‘‘(D) preparation or processing of a nomina- ‘‘(B) a list of areas that have been previously Secretary to the concessioner, if any, including, tion for an administrative designation; studied under this section that contain pri- but not limited to, public access, utilities, and ‘‘(E) updating of a previous study; or marily natural resources, but have not been ‘‘(F) completion of a reconnaissance survey of buildings; added to the National Park System. (5) an estimate of the amount of compensa- an area. ‘‘(2) In developing a list under paragraph (1), tion, if any, due an existing concessioner from a ‘‘(4) NATIONAL WILD AND SCENIC RIVERS SYS- the Secretary shall consider the factors de- TEM; NATIONAL TRAILS SYSTEM.—Nothing in this new concessioner under the terms of a prior con- scribed in subsection (b)(2). cession contract; section applies to, affects, or alters the study ‘‘(3) The Secretary shall include on a list of— (6) a statement as to the weight to be given to under paragraph (1) only areas for which sup- each selection factor identified in the prospectus ‘‘(A) any river segment for potential addition porting data are current and accurate.’’. to the National Wild and Scenic Rivers System; and the relative importance of such factors in TITLE IV—NATIONAL PARK SERVICE or the selection process; CONCESSION MANAGEMENT (7) such other information related to the pro- ‘‘(B) any trail for potential addition to the posed concession operation as is provided to the National Trails System. SEC. 401. SHORT TITLE. ‘‘(5) In conducting a study under this sub- This title may be cited as the ‘‘National Park Secretary pursuant to a concession contract or is otherwise available to the Secretary, as the section, the Secretary shall— Service Concession Management Improvement ‘‘(A) provide adequate public notice and an Act of 1998’’. Secretary determines is necessary to allow for the submission of competitive proposals; and opportunity for public involvement, including at SEC. 402. CONGRESSIONAL FINDINGS AND STATE- (8) where applicable, a description of a pref- least one public meeting in the vicinity of the MENT OF POLICY. erential right to the award of the proposed con- area under study; and In furtherance of the Act of August 25, 1916 cession contract held by an existing conces- ‘‘(B) make reasonable efforts to notify poten- (39 Stat. 535), as amended (16 U.S.C. 1, 2–4), sioner as set forth in subsection (g). tially affected landowners and State and local which directs the Secretary of the Interior to ad- (d) MINIMUM REQUIREMENTS.— governments. minister areas of the National Park System in (1) No proposal shall be considered which fails ‘‘(6) In conducting a study of an area under accordance with the fundamental purpose of to meet the minimum requirements as determined this subsection, the Secretary— conserving their scenery, wildlife, natural and by the Secretary. Such minimum requirements ‘‘(A) shall consider whether the area— historic objects, and providing for their enjoy- shall include, but need not be limited to— ‘‘(i) possesses nationally significant natural, ment in a manner that will leave them (A) the minimum acceptable franchise fee or historic or cultural resources, or outstanding unimpaired for the enjoyment of future genera- other forms of consideration to the government; recreational opportunities; tions, the Congress hereby finds that the preser- (B) any facilities, services, or capital invest- ‘‘(ii) represents one of the most important ex- vation of park values requires that such public ment required to be provided by the conces- amples (singly or as part of a group) of a par- accommodations, facilities and services as have sioner; and ticular resource type in the United States; and to be provided within those areas should be pro- (C) measures necessary to ensure the protec- ‘‘(iii) is a suitable and feasible addition to the vided only under carefully controlled safeguards tion and preservation of park resources. National Park System; against unregulated and indiscriminate use, so (2) The Secretary shall reject any proposal, re- ‘‘(B) shall consider— that heavy visitation will not unduly impair gardless of the franchise fee offered, if the Sec- ‘‘(i) the rarity and integrity of the resources of these values and so that development of such fa- retary determines that the person, corporation the area; cilities can best be limited to locations where the or entity is not qualified, is not likely to provide ‘‘(ii) the threats to resources; least damage to park values will be caused. It is satisfactory service, or that the proposal is not ‘‘(iii) whether similar resources are already the policy of the Congress that such develop- responsive to the objectives of protecting and protected in the National Park System or in ment shall be limited to those that are necessary preserving park resources and of providing nec- other public or private ownership; and appropriate for public use and enjoyment of essary and appropriate facilities and services to ‘‘(iv) benefits to the public; the unit of the National Park System in which the public at reasonable rates. ‘‘(v) the interpretive and educational poten- they are located and that are consistent to the (3) If all proposals submitted to the Secretary tial of the area; highest practicable degree with the preservation either fail to meet the minimum requirements or ‘‘(vi) costs associated with acquisition, devel- and conservation of the units. are rejected by the Secretary, the Secretary shall opment, and operation of the area and the establish new minimum contract requirements SEC. 403. AWARD OF CONCESSION CONTRACTS. source or revenue to pay for the cost; and re-initiate the competitive selection process In furtherance of the findings and policy stat- ‘‘(vii) the socioeconomic impacts of inclusion pursuant to this section. of the area in the National Park System; ed in section 402, and, except as provided by this (4) The Secretary may not execute a conces- ‘‘(viii) the level of local and general public title or otherwise authorized by law, the Sec- sion contract which materially amends or does support for the inclusion; retary shall utilize concession contracts to au- not incorporate the proposed terms and condi- ‘‘(ix) whether the area is of appropriate con- thorize private entities to provide accommoda- tions of the concession contract as set forth in figuration to ensure long-term resource protec- tions, facilities and services to visitors to areas the applicable prospectus. If proposed material tion and appropriate visitor use; and of the National Park system. Such concession amendments or changes are considered appro- ‘‘(x) the potential impact on the inclusion of contracts shall be awarded as follows: priate by the Secretary, the Secretary shall re- the area on existing units of the National Park (a) COMPETITIVE SELECTION PROCESS.—Except solicit offers for the concession contract incor- System; as otherwise provided in this section, all pro- porating such material amendments or changes. ‘‘(C) shall consider whether direct manage- posed concession contracts shall be awarded by (e) SELECTION OF THE BEST PROPOSAL.— ment by the Secretary or alternative protection the Secretary to the person, corporation, or (1) In selecting the best proposal, the Sec- by other public agencies or the private sector is other entity submitting the best proposal as de- retary shall consider the following principal fac- most appropriate for the area; termined by the Secretary through a competitive tors: ‘‘(D) shall identify what alternative, if any, selection process. Such competitive process shall (A) The responsiveness of the proposal to the or what combination of alternatives would, as include simplified procedures for small, individ- objectives of protecting and preserving park re- determined by the Secretary, be most effective ually-owned, concession contracts. sources and values and of providing necessary and efficient in protecting significant resources (b) SOLICITATION OF PROPOSALS.—Except as and appropriate facilities and services to the and providing for public enjoyment; and otherwise provided in this section, prior to public at reasonable rates. ‘‘(E) may include any other information that awarding a new concession contract (including (B) The experience and related background of the Secretary considers pertinent. renewals or extensions of existing concession the person, corporation, or entity submitting the ‘‘(7) The letter transmitting a completed study contracts) the Secretary shall publicly solicit proposal, including but not limited to, the past to Congress shall contain a recommendation re- proposals for the concession contract and, in performance and expertise of such person, cor- garding the preferred management option of the connection with such solicitation, the Secretary poration or entity in providing the same or simi- Secretary for the area. shall prepare a prospectus and shall publish no- lar facilities or services. S6264 CONGRESSIONAL RECORD — SENATE June 11, 1998 (C) The financial capability of the person, any interest, including, but not limited to, any (A) A concessioner shall have a property right corporation or entity submitting the proposal. leasehold surrender interest or possessory inter- in each capital improvement constructed by a (D) The proposed franchise fee: Provided, est, in capital improvements on lands owned by concessioner under a concession contract, con- That consideration of revenue to the United the United States within a unit of the National sisting solely of a right to compensation for the States shall be subordinate to the objectives of Park System: Provided, That this limitation capital improvement to the extent of the value of protecting and preserving park resources and of shall not apply to capital improvements con- the concessioner’s leasehold surrender interest providing necessary and appropriate facilities to structed by a concessioner pursuant to the terms in the capital improvement. the public at reasonable rates. of a concession contract prior to the effective (B) A leasehold surrender interest— (2) The Secretary may also consider such sec- date of this title; and (i) may be pledged as security for financing of ondary factors as the Secretary deems appro- (B) the Secretary determines that the conces- a capital improvement or the acquisition of a priate. sioner has operated satisfactorily during the concession contract when approved by the Sec- (3) In developing regulations to implement this term of the contract (including any extension retary pursuant to this title; title, the Secretary shall consider the extent to thereof); and (ii) shall be transferred by the concessioner in which plans for employment of Indians (includ- (C) the concessioner has submitted a respon- connection with any transfer of the concession ing Native Alaskans) and involvement of busi- sive proposal for a proposed new contract which contract and may be relinquished or waived by ness owned by Indians, Indian tribes, or Native satisfies the minimum requirements established the concessioner; and Alaskans in the operation of a concession con- by the Secretary pursuant to subsection (d). (iii) shall not be extinguished by the expira- tracts should be identified as a factor in the se- (2) CONTRACTS WITH ANTICIPATED ANNUAL tion or other termination of a concession con- lection of a best proposal under this section. GROSS RECEIPTS UNDER $500,000.—A concessioner tract and may not be taken for public use except (f) CONGRESSIONAL NOTIFICATION.—The Sec- which holds a concession contract where the on payment of just compensation. (C) The value of a leasehold surrender interest retary shall submit any proposed concession Secretary has estimated that its renewal will re- in a capital improvement shall be an amount contract with anticipated annual gross receipts sult in gross annual receipts of less than equal to the initial value (construction cost of in excess of $5,000,000 or a duration of ten years $500,000 shall be entitled to a preferential right the capital improvement), increased (or de- or more to the Committee on Energy and Natu- of renewal under this title if— creased) in the same percentage increase (or de- ral Resources of the United States Senate and (A) the Secretary has determined that the con- crease) as the percentage increase (or decrease) the Committee on Resources of the United States cessioner has operated satisfactorily during the in the Consumer Price Index, from the date of House of Representatives. The Secretary shall term of the contract (including any extension making the investment in the capital improve- not award any such proposed contract until at thereof); and ment by the concessioner to the date of payment least 60 days subsequent to the notification of (B) the concessioner has submitted a respon- of the value of the leasehold surrender interest, both committees. sive proposal for a proposed new concession less depreciation of the capital improvement as (g) PREFERENTIAL RIGHT OF RENEWAL.— contract which satisfies the minimum require- evidenced by the condition and prospective serv- (1) Except as provided in paragraph (2), the ments established by the Secretary pursuant to iceability in comparison with a new unit of like Secretary shall not grant a concessioner a pref- subsection (d). kind. (i) NEW OR ADDITIONAL SERVICES.—The Sec- erential right to renew a concession contract, or (D) Where a concessioner, pursuant to the retary shall not grant a preferential right to a any other form of preference to a concession terms of a concession contract, makes a capital concessioner to provide new or additional serv- contract. improvement to an existing capital improvement (2) The Secretary shall grant a preferential ices in a park. in which the concessioner has a leasehold sur- right of renewal to an existing concessioner with (j) SECRETARIAL AUTHORITY.—Nothing in this render interest, the cost of such additional cap- title shall be construed as limiting the authority respect to proposed renewals of the categories of ital improvement shall be added to the then cur- of the Secretary to determine whether to issue a concession contracts described by subsection (h), rent value of the concessioner’s leasehold sur- concession contract or to establish its terms and subject to the requirements of that subsection. render interest. (3) As used in this title, the term ‘‘preferential conditions in furtherance of the policies ex- (E) For purposes of this section, the term— right of renewal’’ means that the Secretary, sub- pressed in this title. (i) ‘‘Consumer Price Index’’ means the ‘‘Con- ject to a determination by the Secretary that the (k) EXCEPTIONS.—Notwithstanding the provi- sumer Price Index—All Urban Consumers’’ pub- facilities or services authorized by a prior con- sions of this section, the Secretary may award, lished by the Bureau of Labor Statistics of the tract continue to be necessary and appropriate without public solicitation— Department of Labor, unless such index is not within the meaning of section 402 of this title, (1) a temporary concession contract or extend published, in which case another regularly pub- shall allow a concessioner qualifying for a pref- an existing concession contract for a term not to lished cost-of-living index approximating the erential right of renewal the opportunity to exceed three years in order to avoid interruption Consumer Price Index shall be utilized by the match the terms and conditions of any compet- of services to the public at a park, except that Secretary; and ing proposal which the Secretary determines to prior to making such an award, the Secretary (ii) ‘‘capital improvement’’ means a structure, be the best proposal for a proposed new conces- shall take all reasonable and appropriate steps fixture, or non-removable equipment provided by sion contract which authorizes the continuation to consider alternatives to avoid such interrup- a concessioner pursuant to the terms of a con- of the facilities and services provided by the tion; and cession contract and located on lands of the concessioner under its prior contract. (2) a concession contract in extraordinary cir- United States within a unit of the National (4) A concessioner which successfully exercises cumstances where compelling and equitable con- Park System. a preferential right of renewal in accordance siderations require the award of a concession (b) SPECIAL RULE FOR EXISTING POSSESSORY with the requirements of this title shall be enti- contract to a particular party in the public in- INTEREST.— tled to award of the proposed new concession terest. Such award of a concession contract (1) A concessioner which has obtained a contract to which such preference applies. shall not be made by the Secretary until at least possessory interest as defined in Public Law 89– (h) OUTFITTER AND GUIDE SERVICES AND thirty days after publication in the ‘‘Federal 249 under the terms of a concession contract en- SMALL CONTRACTS.—The provisions of sub- Register’’ of notice of the Secretary’s intention tered into prior to the date of enactment of this section (g) shall apply only to concession con- to do so and the reasons for such action, and title shall, upon the expiration or termination of tracts authorizing outfitter and guide services notice to the Committee on Energy and Natural such contract, be entitled to receive compensa- and concession contracts with anticipated an- Resources of the United States Senate and the tion for such possessory interest improvements nual gross receipts under $500,000 as further de- Committee on Resources of the United States in the amount and manner as described by such scribed below and which otherwise qualify as House of Representatives. concession contract. follows: SEC. 404. TERM OF CONCESSION CONTRACTS. (2) In the event such prior concessioner is (1) OUTFITTING AND GUIDE CONTRACTS.—For A concession contract entered into pursuant awarded a new concession contract after the ef- the purposes of this title, an ‘‘outfitting and to this title shall be awarded for a term not to fective date of this title replacing an existing guide concession contract’’ means a concession exceed ten years: Provided, That the Secretary concession contract, the existing concessioner contract which solely authorizes the provision may award a contract for a term of up to twenty shall, instead of directly receiving such of specialized backcountry outdoor recreation years if the Secretary determines that the con- possessory interest compensation, have a lease- guide services which require the employment of tract terms and conditions, including the re- hold surrender interest in its existing possessory specially trained and experienced guides to ac- quired construction of capital improvements, interest improvements under the terms of the company park visitors in the backcountry so as warrant a longer term. new contract and shall carry over as the initial to provide a safe and enjoyable experience for SEC. 405. PROTECTION OF CONCESSIONER IN- value of such leasehold surrender interest (in- visitors who otherwise may not have the skills VESTMENT. stead of construction cost) an amount equal to and equipment to engage in such activity. Out- (a) LEASEHOLD SURRENDER INTEREST UNDER the value of the existing possessory interest as of fitting and guide concessioners, where otherwise NEW CONCESSION CONTRACTS.— the termination date of the previous contract. In qualified, include, but are not limited to, conces- (1) On or after the date of enactment of this the event of a dispute between the concessioner sioners which provide guided river running, title, a concessioner which constructs a capital and the Secretary as to the value of such hunting, fishing, horseback, camping, and improvement upon land owned by the United possessory interest, the matter shall be resolved mountaineering experiences. An outfitting and States within a unit of the National Park Sys- through binding arbitration. guide concessioner is entitled to a preferential tem pursuant to a concession contract, shall (3) In the event that a new concessioner is right of renewal under this title only if— have a leasehold surrender interest in such cap- awarded a concession contract and is required (A) the contract the outfitting and guide con- ital improvement subject to the following terms to pay a prior concessioner for possessory inter- cessioner holds does not grant the concessioner and conditions: est in prior improvements, the new concessioner June 11, 1998 CONGRESSIONAL RECORD — SENATE S6265 shall have a leasehold surrender interest in such available for expenditure by the Secretary, sub- staggered basis by the Secretary for a term not prior improvements and the initial value in such ject to appropriation, until expended for use in to exceed four years and shall serve at the leasehold surrender interest (instead of con- accordance with subsection (d). pleasure of the Secretary. The Advisory Board struction cost), shall be an amount equal to the (d) USE OF FRANCHISE FEES.—Funds con- shall be comprised of not more than seven indi- value of the existing possessory interest as of the tained in the special account shall be trans- viduals appointed from among citizens of the termination date of the previous contract. ferred to a subaccount and shall be allocated to United States not in the employment of the Fed- (c) TRANSITION TO SUCCESSOR CONCES- each applicable unit of the National Park Sys- eral government and not in the employment of SIONER.—Upon expiration or termination of a tem, based on the proportion that the amount of or having an interest in a National Park Service concession contract entered into after the effec- concession contract fees collected from the unit concession. Of the seven members of the Advi- tive date of this title, a concessioner shall be en- during the fiscal year bears to the total amount sory Board— titled under the terms of the concession contract of concession contract fees collected from all (1) one shall be privately employed in the hos- to receive from the United States or a successor units of the National Park System during the pitality industry, concessioner the value of any leasehold surren- fiscal year, to fund high-priority resource man- (2) one shall be privately employed in the der interest in a capital improvement as of the agement and visitor services programs and oper- tourism industry, date of such expiration or termination. A suc- ations. (3) one shall be privately employed in the ac- cessor concessioner shall have a leasehold sur- SEC. 408. TRANSFER OF CONCESSION CON- counting industry, render interest in such capital improvement TRACTS. (4) one shall be privately employed in the out- under the terms of a new contract and the ini- (a) APPROVAL OF THE SECRETARY.—No conces- fitting and guide industry, tial value of the leasehold surrender interest in sion contract or leasehold surrender interest (5) one shall be a State government employee such capital improvement (instead of construc- may be transferred, assigned, sold, or otherwise with expertise in park concession management, (6) one shall be active in promotion of tradi- tion cost) shall be the amount of money the new conveyed or pledged by a concessioner without prior written notification to, and approval of tional arts and crafts, and concessioner is required to pay the prior conces- (7) one shall be active in a non-profit con- the Secretary. sioner for its leasehold surrender interest under servation organization involved in the programs (b) CONDITIONS.—The Secretary shall not un- the terms of the prior concession contract. of the National Park Service. (d) TITLE TO IMPROVEMENTS.—Title to any reasonably withhold approval of such a convey- (c) TERMINATION.—The Advisory Board shall ance or pledge, and shall approve such convey- capital improvement constructed by a conces- continue to exist until December 31, 2008. In all ance or pledge if the Secretary in his discretion sioner on lands owned by the United States in other respects, it shall be subject to the provi- a unit of the National Park System shall be in determines that— (1) the individual, corporation or entity seek- sions of the Federal Advisory Committee Act. the United States. (d) SERVICE ON ADVISORY BOARD.—Service of ing to acquire a concession contract is qualified SEC. 406. REASONABLENESS OF RATES. an individual as a member of the Advisory to be able to satisfy the terms and conditions of The reasonableness of a concessioner’s rates Board shall not be considered as service or em- and charges to the public, unless otherwise pro- the concession contract; (2) such conveyance or pledge is consistent ployment bringing such individual within the vided in the contract, shall be judged primarily with the objectives of protecting and preserving provisions of any Federal law relating to con- by comparison with those rates and charges for park resources and of providing necessary and flicts of interest or otherwise imposing restric- facilities and services of comparable character appropriate facilities and services to visitors at tions, requirements, or penalties in relation to under similar conditions, with due consideration reasonable rates and charges; and the employment of persons, the performance of for length of season, peakloads, average per- (3) the terms of such conveyance or pledge are services, or the payment or receipt of compensa- centage of occupancy, accessibility, availability not likely, directly or indirectly, to: reduce the tion in connection with claims, proceedings, or and costs of labor and materials, type of patron- concessioner’s opportunity for a reasonable matters involving the United States. Service as a age, and other factors deemed significant by the profit over the remaining term of the contract; member of the Advisory Board shall not be con- Secretary. A concessioner’s rates and charges to adversely affect the quality of facilities and sidered service in an appointive or elective posi- the public shall be subject to approval by the services provided by the concessioner; or result tion in the Government for purposes of section Secretary pursuant to the terms of the in a need for increased rates and charges to the 8344 of Title 5 of the United States Code, or concesssion contract. The approval process uti- public to maintain the quality of such facilities other comparable provisions of Federal law. lized by the Secretary shall be as prompt and and services. SEC. 410. CONTRACTING FOR SERVICES. unburdensome to the concessioner as possible SEC. 409. NATIONAL PARK SERVICE CONCES- To the maximum extent practicable, the Sec- and shall rely on market forces to establish rea- SIONS MANAGEMENT ADVISORY retary shall contract with private entities to sonableness of rates and charges to the maxi- BOARD. conduct the following elements of the manage- mum extent practicable. (a) ESTABLISHMENT.—There is hereby estab- ment of the National Park Service concession SEC. 407. FRANCHISE FEES. lished a National Park Service Concessions program suitable for non-federal fulfillment: (a) IN GENERAL.—A concession contract shall Management Advisory Board (hereinafter in health and safety inspections, quality control of provide for payment to the government of a this title referred to as the ‘‘Advisory Board’’) concession operations and facilities, analysis of franchise fee or such other monetary consider- whose purpose shall be to advise the Secretary rates and charges to the public, and financial ation as determined by the Secretary, upon con- and National Park Service on matters relating analysis: Provided, That nothing in this section sideration of the probable value to the conces- to management of concessions in areas of the shall diminish the governmental responsibilities sioner of the privileges granted by the particular National Park System. Among other matters, the and authority of the Secretary to administer contract involved. Such probable value is a rea- Advisory Board shall advise on policies and pro- concession contracts and activities pursuant to sonable opportunity for net profit in relation to cedures intended to assure that services and fa- this title and the Act of August 25, 1916 (39 Stat. capital invested and the obligations of the con- cilities provided by concessioners meet accept- 535), as amended, (16 U.S.C. 1, 2–4). The Sec- tract. Consideration of revenue to the United able standards at reasonable rates with a mini- retary shall also consider, taking into account States shall be subordinate to the objectives of mum of impact on park resources and values, the recommendations of the National Park Serv- protecting and preserving park areas and of and provide the concessioners with a reasonable ice Concessions Management Advisory Board, providing adequate and appropriate services for opportunity to make a profit. The Advisory contracting out other elements of the concession visitors at reasonable rates. Board shall also advise on ways to make Na- management program, as appropriate. (b) AMOUNT OF FRANCHISE FEE.—The amount tional Park Service concession programs and SEC. 411. USE OF NON-MONETARY CONSIDER- of the franchise fee or other monetary consider- procedures more cost effective, efficient, and less ATION IN CONCESSION CONTRACTS. ation paid to the United States for the term of burdensome, including, but not limited to, pro- The provisions of section 321 of the Act of the concession contract shall be specified in the viding recommendations regarding National June 30, 1932 (47 Stat. 412; 40 U.S.C. 303b), relat- concession contract and may only be modified to Park Service contracting with the private sector ing to the leasing of buildings and properties of reflect substantial, unanticipated changes from to conduct appropriate elements of concessions the United States, shall not apply to contracts the conditions anticipated as of the effective management and providing recommendations to awarded by the Secretary pursuant to this title. date of the contract. The Secretary shall include make more efficient and less burdensome the ap- SEC. 412. RECORDKEEPING REQUIREMENTS. in concession contracts with a term of more proval of concessioner rates and charges to the (a) IN GENERAL.—Each concessioner shall than five years a provision which allows recon- public. In addition, the Advisory Board shall keep such records as the Secretary may pre- sideration of the franchise fee at the request of make recommendations to the Secretary regard- scribe to enable the Secretary to determine that the Secretary or the concessioner in the event of ing the nature and scope of products which all terms of the concession contract have been such substantial, unanticipated changes. Such qualify as Indian, Alaska Native, and Native and are being faithfully performed, and the Sec- provision shall provide for binding arbitration Hawaiian handicrafts within this meaning of retary and his duly authorized representatives in the event that the Secretary and the conces- this title. The Advisory Board, commencing with shall, for the purpose of audit and examination, sioner are unable to agree upon an adjustment the first anniversary of its initial meeting, shall have access to said records and to other books, to the franchise fee in these circumstances. provide an annual report on its activities to the documents, and papers of the concessioner perti- (c) SPECIAL ACCOUNT.—All franchise fees (and Committee on Energy and Natural Resources of nent to the contract and all terms and condi- other monetary consideration) paid to the the United States Senate and the Committee on tions thereof. United States pursuant to a concession contract Resources of the United States House of Rep- (b) ACCESS TO RECORDS.—The Comptroller shall be covered into a special account estab- resentatives. General of the United States or any of his duly lished in the Treasury of the United States. The (b) ADVISORY BOARD MEMBERSHIP.—Members authorized representatives shall, until the expi- funds contained in such special account shall be of the Advisory Board shall be appointed on a ration of five calendar years after the close of S6266 CONGRESSIONAL RECORD — SENATE June 11, 1998 the business year of each concessioner or sub- (1) The authority of this section may be used authority of the Recreational Fee Demonstra- concessioner have access to and the right to ex- only to authorize provision of services that the tion Program (16 U.S.C. 460l–6a note), a descrip- amine any pertinent books, papers, documents Secretary determines will have minimal impact tion of the criteria that were used to determine and records of the concessioner or subconces- on park resources and values and which are whether a recreational fee should or should not sioner related to the contract or contracts in- consistent with the purposes for which the park be charged at such park; and volved. unit was established and with all applicable (C) a description of the manner in which the SEC. 413. REPEAL OF CONCESSION POLICY ACT management plans and park policies and regu- amount of the fee at each national park was es- OF 1965. lations. tablished. (a) REPEAL.—The Act of October 9, 1965, Pub- (2) The Secretary shall— (c) NOTICE.—At least twelve months notice lic Law 89–249 (79 Stat. 969, 16 U.S.C. 20–20g), is (A) require payment of a reasonable fee for shall be given to the public prior to the increase hereby repealed. The repeal of such Act shall issuance of an authorization under this section, or establishment of any fee in units of the Na- not affect the validity of any concession con- such fees to remain available without further tional Park System. tract or permit entered into under such Act, but appropriation to be used, at a minimum, to re- SEC. 502. COMMERCIAL FILMING ACTIVITIES. the provisions of this title shall apply to any cover associated management and administra- (a) COMMERCIAL FILMING.—The Secretary such contract or permit except to the extent tive costs; shall require a permit and shall establish a rea- such provisions are inconsistent with the ex- (B) require that the provision of services sonable fee for commercial filming activities in press terms and conditions of any such contract under such an authorization be accomplished in units of the National Park System. Such fee or permit. References in this title to concession a manner consistent to the highest practicable shall provide a fair return to the United States contracts awarded under authority of Public degree with the preservation and conservation and shall be based upon the following criteria, Law 89–249 also apply to concession permits of park resources and values; in addition to such other factors as the Sec- awarded under such authority. (C) take appropriate steps to limit the liability retary deems necessary: the number of days the (b) EXCEPTION FOR PENDING CONTRACT SO- of the United States arising from the provision filming takes place within a park unit, the size LICITATIONS.—Notwithstanding such repeal, the of services under such an authorization; and of the film crew, the amount and type of equip- Secretary may award concession contracts (D) have no authority under this section to ment present, and any potential impact on park under the terms of Public Law 89–249 for conces- issue more authorizations than are consistent resources. The Secretary is also directed to re- sion contract solicitations for which, as of Au- with the preservation and proper management cover any costs incurred as a result of filming gust 1, 1998, a formal prospectus was issued by of park resources and values, and shall estab- activities, including but not limited to adminis- the Secretary pursuant to the requirements of 36 lish such other conditions for issuance of such tration and personnel costs. All costs recovered C.F.R. Part 51. an authorization as the Secretary determines are in addition to the assessed fee. (c) CONFORMING AMENDMENT.—The fourth appropriate for the protection of visitors, provi- (b) STILL PHOTOGRAPHY.—(1) Except as pro- sentence of section 3 of the Act of August 25, sion of adequate and appropriate visitor serv- vided in paragraph (2), the Secretary shall not 1916 (39 Stat. 535; 16 U.S.C. 3) is amended by ices, and protection and proper management of require a permit or assess a fee for commercial or striking all through ‘‘no natural’’ and inserting the resources and values of the park. non-commercial still photography of sites or re- in lieu thereof, ‘‘No natural,’’ and, the last pro- (c) LIMITATIONS.—Any authorization issued sources in units of the National Park System in viso of such sentence is stricken in its entirety. under this section shall be limited to: any part of a park where members of the public (d) ANILCA.—Nothing in this title amends, (1) commercial operations with annual gross are generally allowed. In other locations, the supersedes, or otherwise affects any provision of receipts of not more than $25,000 resulting from Secretary may require a permit, fee, or both, if the Alaska National Interest Lands Conserva- services originating and provided solely within a the Secretary determines that there is a likeli- tion Act (16 U.S.C. 3101 et seq.) relating to reve- park pursuant to such authorization; hood of resource impact, disruption of the nue-producing visitor services. (2) the incidental use of park resources by public’s use and enjoyment of the park, or if the SEC. 414. PROMOTION OF THE SALE OF INDIAN, commercial operations which provide services activity poses health or safety risks. ALASKA NATIVE, AND NATIVE HAWAI- originating and terminating outside of the (2) The Secretary shall require the issuance of IAN HANDICRAFTS. park’s boundaries: provided that such author- a permit and the payment of a reasonable fee (a) IN GENERAL.—Promoting the sale of ization shall not provide for the construction of for still photography that utilizes models or United States authentic Indian, Alaskan Native any structure, fixture, or improvement on feder- props which are not a part of a park’s natural and Native Hawaiian handicrafts relating to the ally-owned lands within the boundaries of the or cultural features or administrative facilities. cultural, historical, and geographic characteris- park. (c) PROCEEDS.—(1) Fees collected within units tics of units of the National Park System is en- (d) DURATION.—The term of any authoriza- of the National Park System under this section couraged, and the Secretary shall ensure that tion issued under this section shall not exceed shall be deposited in a special account in the there is a continuing effort to enhance the two years. No preferential right of renewal or Treasury of the United States and shall be handicraft trade where it exists and establish similar provisions for renewal shall be granted available to the Secretary, without further ap- the trade where it currently does not exist. by the Secretary. propriation for high-priority visitor service or (b) EXEMPTION FROM FRANCHISE FEE.—In fur- (e) OTHER CONTRACTS.—A person, corpora- resource management projects and programs for therance of these purposes, the revenue derived tion, or other entity seeking or obtaining an au- the unit of the National Park System in which from the sale of United States Indian, Alaska thorization pursuant to this section shall not be the fee is collected. Native, and Native Hawaiian handicrafts shall precluded from also submitting proposals for (2) All costs recovered under this section shall be exempt from any franchise fee payments concession contracts. be retained by the Secretary and shall remain under this title. TITLE V—FEE AUTHORITIES available for expenditure in the park where col- SEC. 415. REGULATIONS. SEC. 501. EXTENSION OF THE RECREATIONAL FEE lected, without further appropriation. As soon as practicable after the effective date DEMONSTRATION PROGRAM. SEC. 503. DISTRIBUTION OF GOLDEN EAGLE of this title, the Secretary shall promulgate reg- (a) AUTHORITY.—The authority provided to PASSPORT SALES. ulations appropriate for its implementation. the National Park Service under the Rec- Not later than six months after the date of en- Among other matters, such regulations shall in- reational Fee Demonstration Program author- actment of this title, the Secretary and the Sec- clude appropriate provisions to ensure that con- ized by section 315 of Public Law 104–134 (16 retary of Agriculture shall enter into an agree- cession services and facilities to be provided in U.S.C. 460l–6a note)— ment providing for an apportionment among an area of the National Park System are not (1) is extended through September 30, 2005; each agency of all proceeds derived from the segmented or otherwise split into separate con- and sale of Golden Eagle Passports by private ven- cession contracts for the purposes of seeking to (2) shall be available for all units of the Na- dors. Such proceeds shall be apportioned to each reduce anticipated annual gross receipts of a tional Park System, and for system-wide fee pro- agency on the basis of the ratio of each agency’s concession contract below $500,000. The Sec- grams. total revenue from admission fees collected dur- retary shall also promulgate regulations which (b) REPORT.—(1) Not later than September 30, ing the previous fiscal year to the sum of all rev- further define the term ‘‘United States Indian, 2000, the Secretary shall submit to the Commit- enue from admission fees collected during the Alaskan Native, and Native Hawaiian handi- tee on Energy and Natural Resources of the previous fiscal year for all agencies participat- crafts’’ for the purposes of this title. United States Senate and the Committee on Re- ing in the Golden Eagle Passport Program. SEC. 416. COMMERCIAL USE AUTHORIZATIONS. sources of the United States House of Represent- TITLE VI—NATIONAL PARK PASSPORT (a) IN GENERAL.—To the extent specified in atives a report detailing the status of the rec- PROGRAM this section, the Secretary, upon request, may reational fee demonstration program conducted authorize a private person, corporation, or other in units of the National Park System under sec- SEC. 601. PURPOSES. entity to provide services to visitors to units of tion 315 of Public Law 104–134 (16 U.S.C. 460l– The purposes of this title are— the National Park System through a commercial 6a note). (1) to develop a national park passport that use authorization. Such authorizations shall (2) The report under paragraph (1) shall con- includes a collectible stamp to be used for admis- not be considered as concession contracts pursu- tain— sion to units of the National Park System; and ant to this title nor shall other sections of this (A) an evaluation of the fee demonstration (2) to generate revenue for support of the Na- title be applicable to such authorizations except program conducted at each unit of the National tional Park System. where expressly so stated. Park System; SEC. 602. NATIONAL PARK PASSPORT PROGRAM. (b) CRITERIA FOR ISSUANCE OF AUTHORIZA- (B) with respect to each unit of the National (a) PROGRAM.—The Secretary shall establish a TIONS.— Park System where a fee is charged under the national park passport program. A national June 11, 1998 CONGRESSIONAL RECORD — SENATE S6267 park passport shall include a collectible stamp SEC. 605. EFFECT ON OTHER LAWS AND PRO- ‘‘(A) a nonprofit support organization or providing the holder admission to all units of GRAMS. friends group in existence on the date of enact- the National Park System. (a) PARK PASSPORT NOT REQUIRED.—A na- ment of this title to modify current practices or (b) EFFECTIVE PERIOD.—A national park pass- tional park passport or international park pass- to affiliate with the Foundation; or port stamp shall be effective for a period of 12 port shall not be required for— ‘‘(B) a local nonprofit support organization, months from the date of purchase. (1) a single visit to a national park that established as a result of this section, to be (c) TRANSFERABILITY.—A national park pass- charges a single visit admission fee under sec- bound through its charter or corporate bylaws port and stamp shall not be transferable. tion 4(a)(2) of the Land and Water Conservation to be permanently affiliated with the Founda- SEC. 603. ADMINISTRATION. Fund Act of 1965 (16 U.S.C. 460l–6a(a)(2)) or the tion. (a) STAMP DESIGN COMPETITION.—(1) The Sec- Recreational Fee Demonstration Program (16 ‘‘(2) ESTABLISHMENT.—An affiliation with the retary shall hold an annual competition for the U.S.C. 460l–6a note); or Foundation shall be established only at the dis- design of the collectible stamp to be affixed to (2) an individual who has obtained a Golden cretion of the governing board of a nonprofit or- the national park passport. Age or Golden Access Passport under paragraph ganization.’’. (2) Each competition shall be open to the pub- (4) or (5) of section 4(a) of the Land and Water TITLE VIII—MISCELLANEOUS PROVISIONS lic and shall be a means to educate the Amer- Conservation Fund Act of 1965 (16 U.S.C. 460l– SEC. 801. UNITED STATES PARK POLICE. ican people about the National Park System. 6a(a)). (a) APPOINTMENT OF TASK FORCE.—Not later (b) SALE OF PASSPORTS AND STAMPS.—(1) Na- (b) GOLDEN EAGLE PASSPORTS.—A Golden tional park passports and stamps shall be sold Eagle Passport issued under section 4(a)(1)(A) than 60 days after the date of enactment of this through the National Park Service and may be of the Land and Water Conservation Fund Act title, the Secretary shall appoint a multidisci- sold by private vendors on consignment in ac- of 1965 (16 U.S.C. 460l–6a(a)(1)(A)) or the Rec- plinary task force to fully evaluate the short- cordance with guidelines established by the Sec- reational Fee Demonstration Program (16 U.S.C. falls, needs, and requirements of law enforce- retary. 460l–6a note) shall be honored for admission to ment programs in the National Park Service, in- (B) A private vendor may be allowed to collect each unit of the National Park System. cluding a separate analysis for the United a commission on each national park passport (c) ACCESS.—A national park passport and an States Park Police, which shall include a review (including stamp) sold, as determined by the international park passport shall provide access of facility repair, rehabilitation, equipment, and Secretary. to each unit of the National Park System under communication needs. (C) The Secretary may limit the number of pri- the same conditions, rules, and regulations as (b) SUBMISSION OF REPORT.—Not later than vate vendors of national park passports (includ- apply to access with a Golden Eagle Passport as one year after the date of enactment of this ing stamps). of the date of enactment of this title. title, the Secretary shall submit to the Commit- (c) USE OF PROCEEDS.— (d) LIMITATIONS.—A national park passport or tees on Energy and Natural Resources and Ap- (1) The Secretary may use not more than ten international park passport may not be used to propriations of the United States Senate and the percent of the revenues derived from the sale of obtain access to other Federal recreation fee Committees on Resources and Appropriations of national park passports (including stamps) to areas outside of the National Park System. the United States House of Representatives a re- administer and promote the national park pass- (e) EXEMPTIONS AND FEES.—A national park port that includes— port program and the National Park System. passport or international park passport does not (1) the findings and recommendations of the (2) Amounts collected from the sale of na- exempt the holder from or provide the holder task force; tional park passports shall be deposited in a any discount on any recreation use fee imposed (2) complete justifications for any rec- special account in the Treasury of the United under section 4(b) of the Land and Water Con- ommendations made; and States and shall remain available until ex- servation Fund Act of 1965 (16 U.S.C. 460l–6a(b)) (3) a complete description of any adverse im- pended, without further appropriation, for high or the Recreational Fee Demonstration Program pacts that would occur if any need identified in priority visitor service or resource management (16 U.S.C. 460l–6a note). the report is not met. projects throughout the National Park System. SEC. 802. LEASES AND COOPERATIVE MANAGE- TITLE VII—NATIONAL PARK FOUNDATION MENT AGREEMENTS. (d) AGREEMENTS.—The Secretary may enter SUPPORT into cooperative agreements with the National (a) IN GENERAL.—Section 3 of Public Law 91– Park Foundation and other interested parties to SEC. 701. PROMOTION OF LOCAL FUNDRAISING 383 (16 U.S.C. 1a–2) is amended by adding at the provide for the development and implementation SUPPORT. end the following: of the national park passport program and the The Act entitled ‘‘An Act to establish the Na- ‘‘(k) LEASES.— Secretary shall take such actions as are appro- tional Park Foundation’’, approved December ‘‘(1) IN GENERAL.—The Secretary may enter priate to actively market national park pass- 18, 1967 (16 U.S.C. 19 et seq.) is amended by add- into a lease with any person or governmental ports and stamps. ing at the end thereof the following: entity for the use of buildings and associated (e) FEE.—The fee for a national park passport ‘‘SEC. 12. PROMOTION OF LOCAL FUNDRAISING property administered by the Secretary as part and stamp shall be $50. SUPPORT. of the National Park System. SEC. 604. INTERNATIONAL PARK PASSPORT PRO- ‘‘(a) ESTABLISHMENT.—The Foundation shall ‘‘(2) USE.—Buildings and associated property GRAM. design and implement a comprehensive program leased under paragraph (1)— (a) IN GENERAL.—The Secretary shall estab- to assist and promote philanthropic programs of ‘‘(A) shall be used for an activity that is con- lish an international park passport program in support at the individual national park unit sistent with the purposes established by law for accordance with the other provisions of this title level. the unit in which the building is located; except as provided in this section. ‘‘(b) IMPLEMENTATION.—The program under ‘‘(B) shall not result in degradation of the (b) AVAILABILITY.—An international park subsection (a) shall be implemented to— purposes and values of the unit; and passport and stamp shall be made available ex- ‘‘(1) assist in the creation of local nonprofit ‘‘(C) shall be compatible with National Park clusively to foreign visitors to the United States. support organizations; and Service programs. (c) SALE.—International park passports and ‘‘(2) provide support, national consistency, ‘‘(3) RENTAL AMOUNTS.— stamps shall be available for sale exclusively and management-improving suggestions for ‘‘(A) IN GENERAL.—With respect to a lease outside the United States through commercial local nonprofit support organizations. under paragraph (1)— tourism channels and consulates or other offices ‘‘(c) PROGRAM.—The program under sub- ‘‘(i) payment of fair market value rental shall of the United States. section (a) shall include the greatest number of be required; and (d) FEE.—International park passports and national park units as is practicable. ‘‘(ii) section 321 of the Act of June 30, 1932 (47 stamps shall be sold for a fee that is $10.00 less ‘‘(d) REQUIREMENTS.—The program under Stat. 412, chapter 314; 40 U.S.C. 303b) shall not than the fee for a national park passport and subsection (a) shall include, at a minimum— apply. stamp, but not less than $40.00. ‘‘(1) a standard adaptable organizational de- ‘‘(B) ADJUSTMENT.—The Secretary may adjust (e) FORM.—An international park passport sign format to establish and sustain responsible the rental amount as appropriate to take into and stamp shall be produced in a form that pro- management of a local nonprofit support orga- account any amounts to be expended by the les- vides useful information to the international nization for support of a national park unit; see for preservation, maintenance, restoration, visitor and serves as a souvenir of the visit. ‘‘(2) standard and legally tenable bylaws and improvement, or repair and related expenses. (f) EFFECTIVE PERIOD.—An international park recommended money-handling procedures that ‘‘(C) REGULATION.—The Secretary shall pro- passport and stamp shall be valid for a period of can easily be adapted as applied to individual mulgate regulations implementing this sub- 45 days from the date of purchase. national park units; and section that includes provisions to encourage (g) USE OF PROCEEDS.—Amounts collected ‘‘(3) a standard training curriculum to orient and facilitate competition in the leasing process from the sale of international park passports and expand the operating expertise of personnel and provide for timely and adequate public com- and stamps shall be deposited in the special ac- employed by local nonprofit support organiza- ment. count under section 603(c) and shall be avail- tions. ‘‘(4) SPECIAL ACCOUNT.— able as provided in section 603(c). ‘‘(e) ANNUAL REPORT.—The Foundation shall ‘‘(A) DEPOSITS.—Rental payments under a (h) TERMINATION OF PROGRAM.—The Sec- report the progress of the program under sub- lease under paragraph (1) shall be deposited in retary shall terminate the international park section (a) in the annual report of the Founda- a special account in the Treasury of the United passport program at the end of calendar year tion. States. 2003 unless at least 200,000 international park ‘‘(f) AFFILIATIONS.— ‘‘(B) AVAILABILITY.—Amounts in the special passports and stamps are sold during that cal- ‘‘(1) CHARTER OR CORPORATE BYLAWS.—Noth- account shall be available until expended, with- endar year. ing in this section requires— out further appropriation, for infrastructure S6268 CONGRESSIONAL RECORD — SENATE June 11, 1998 needs at units of the National Park System, in- Secretary Babbitt, Senator BENNETT, fore us today includes several other ti- cluding— and me in an effort to enact a meaning- tles which I believe will greatly en- ‘‘(i) facility refurbishment; ful and comprehensive bill for our na- hance the Park Service’s management ‘‘(ii) repair and replacement; ‘‘(iii) infrastructure projects associated with tional parks. It has been a pleasure to authorities. The bill includes directives park resource protection; and work with him on this important legis- for the Park Service to improve career ‘‘(iv) direct maintenance of the leased build- lation and I look forward its passage development and training for its em- ings and associated properties. before I leave the Senate this year. I ployees and to establish a strong sci- ‘‘(C) ACCOUNTABILITY AND RESULTS.—The Sec- would also like to particularly thank entific research program in national retary shall develop procedures for the use of Senator BENNETT, who has once again parks. It codifies criteria for the Park the special account that ensure accountability been very helpful and constructive in Service to use in evaluating areas pro- and demonstrated results consistent with this developing a bill that can garner such posed for addition to the National Park Act. ‘‘(l) COOPERATIVE MANAGEMENT AGREE- broad bipartisan support, as I believe System. It gives the Park Service MENTS.— this bill has. much needed authority to collect and ‘‘(1) IN GENERAL.—Where a unit of the Na- Although this is a comprehensive bill retain fees for commercial filming ac- tional Park System is located adjacent to or that makes a number of positive tivities in national park units, and it near a State or local park area, and cooperative changes in the way national parks are extends the Recreational Fee Dem- management between the National Park Service managed, for me, the most significant onstration Program for park fees for and a State or local government agency of a provisions are found in title IV—the another six years. The bill also will portion of either park will allow for more effec- National Park Service Concessions tive and efficient management of the parks, the allow the Park Service to develop and Secretary is authorized to enter into an agree- Management Improvement Act. market annual park admission pass- ment with a State or local government agency to Mr. President, for almost 19 years I ports to increase public awareness provide for the cooperative management of the have worked to reform the concessions about parks and to raise new revenues. Federal and State or local park areas: Provided, policies of the National Park Service There are a few other titles included in That the Secretary may not transfer administra- to increase competition, provide better the bill, but those are the most signifi- tion responsibilities for any unit of the National services, and to ensure a better return cant provisions. Park System. for the American public. Over the past Mr. President, the concession reform ‘‘(2) PROVISION OF GOODS AND SERVICES.— two decades, we have held dozens of provisions in this bill are a great step Under a cooperative management agreement, the Secretary may acquire from and provide to hearings, and we’ve debated this issue forward for the National Park Service a State or local government agency goods and in mark-ups and on the Senate floor. and the taxpayers. I strongly support services to be used by the Secretary and the As you know, during the 103rd Con- these and the other provisions in this State or local governmental agency in the coop- gress Senator BENNETT and I sponsored legislation, and I hope my colleagues erative management of land. a bill which passed the Senate by a will join me in helping to pass this bill. ‘‘(3) ASSIGNMENT.—An assignment arranged vote of 90–9, and passed in the House of Mr. THOMAS. Mr. President, I ask by the Secretary under section 3372 of title 5, Representatives with only minor unanimous consent that the amend- United States Code, of a Federal, State, or local changes by a vote of 368–30. Despite the ment be considered read and agreed to, employee for work in any Federal, State, or overwhelming vote margins, we were local land or an extension of such an assign- the committee substitute be agreed to, ment may be for any period of time determined unable to pass a final bill before the the bill be considered read the third by the Secretary and the State or local agency Congress adjourned. Given the mag- time and passed, the amendment to the to be mutually beneficial.’’. nitude of those votes, it is very frus- title be agreed to, the motion to recon- (b) HISTORIC LEASE PROCESS SIMPLIFICA- trating to be here once again debating sider be laid upon the table, and any TION.—The Secretary is directed to simplify, to park concession reform. statements relating to the bill appear the maximum extent possible, the leasing process While I support passage of this bill at this point in the RECORD. for historic properties with the goal of leasing and believe it will enhance the Park The PRESIDING OFFICER. Without available structures in a timely manner. Service’s ability to better manage our objection, it is so ordered. AMENDMENT NO. 2703 National Park System, the bill before The amendment (No. 2703) was agreed (Purpose: A technical amendment to the us today is a real compromise between to. Committee amendment to comply with re- Senator THOMAS and myself. The bill— The committee amendment, as quirements of the Budget Act) particularly the concession title—does amended, was agreed to. Mr. THOMAS. Mr. President, I send not contain all of the policy changes The bill (S. 1693), as amended, was an amendment to the desk on behalf of that I would like to see made. However, considered read the third time, and Senators MURKOWSKI and BUMPERS and passage of this bill will finally allow passed. ask for its immediate consideration. the Park Service to have meaningful (The text of the bill (S. 1693), as The PRESIDING OFFICER. The competition for park concession con- amended, will be printed in a future clerk will report. tracts. edition of the RECORD.) The legislative clerk read as follows: Most importantly, the bill will repeal The title was amended so as to read: The Senator from Wyoming [Mr. THOMAS], the 1965 Concession Policy Act—a 30- ‘‘A bill to provide for improved man- for Mr. MURKOWSKI and Mr. BUMPERS, pro- year old anachronism—including its agement and increased accountability poses an amendment numbered 2703. most anti-competitive provision, the for certain National Park Service pro- Mr. THOMAS. Mr. President, I ask granting to incumbent concessioners of grams, and for other purposes.’’ unanimous consent that reading of the a preferential right to renew their con- Mr. MURKOWSKI. Mr. President, amendment be dispensed with. tract by simply matching the terms today the Senate has just passed land- The PRESIDING OFFICER. Without and conditions of a superior offer. mark legislation which will serve to re- objection, it is so ordered. Other important provisions in the store, reinvigorate and rebuild our Na- The amendment is as follows: concession reform title include: main- tional Park System. S. 1693 addresses a On page 129 line 22 strike ‘‘without appro- taining existing statutory protections wide variety of Park Service oper- priation’’ and insert the following: ‘‘subject for outfitter and guide contracts and ations from failing infrastructure to to appropriation.’’ small contracts with less than $500,000 improve management and accountabil- Mr. BUMPERS. Mr. President, I rise in annual gross revenue; a prohibition ity for park programs. today in strong support of S. 1693, the against giving any concessioner a pref- The Administration reports that it ‘‘Vision 2020 National Parks System erential right to provide new or addi- will take over $8 billion to bring our Restoration Act.’’ I want to commend tional services; and language linking park facilities, historic structures, Senator THOMAS, the bill’s author, for the value of facilities built by a conces- roads and trails up to an acceptable his efforts in bringing this bill to the sioner to actual construction costs, ad- standard. Over the years while we have floor. As the Chairman of the Sub- justed for inflation, rather than the expanded the National Park System committee on National Parks, Historic ‘‘sound value’’ possessory interest al- with new units and new responsibilities Preservation and Recreation, he has lowed under current law. we have deferred maintenance and re- been willing to compromise and work While the concession title has been of duced funding in many important park with all involved parties, including particular interest to me, the bill be- programs. As a result we now have June 11, 1998 CONGRESSIONAL RECORD — SENATE S6269 what can be best described as a Na- tem resources to establish baseline in- collection authority to all 376 park tional Park System that is worn-out formation and to provide information areas. This should be a valuable shot in and broken—a System in need of atten- on the long-term trends in the condi- the arm for increasing park operating tion. Quite frankly, Congress does not tion of resources under his jurisdiction. funds. have the available monies to address or In addition, the Secretary is directed For the first time since 1948 commer- devote to the problems currently en- to establish a comprehensive network cial film producers will pay a fee for countered by park managers, however of college and university based cooper- using these unique backdrops; our meritorious they may be. ative study units in order to complete parks, for major motion pictures and During this Congress, Senator THOM- the baseline information inventory. advertisement in addition to allowing AS, Chairman of the Subcommittee on Mr. President, I mentioned earlier the parks to recover their direct costs National Parks, Historic Preservation that one of the problems with the Park such as security activities and permit and Recreation, has take a pro-active System is that over the last 20 years processing. In return the parks will do approach to National Park Service re- we have more than doubled the number a better job in processing permits. As form. While conducting over fifteen of units in the System. There has never time is money it is much easier on the over-sight and legislative hearings on been a formal procedure to consider film industry to hear the word ‘‘no’’ the problems confronting the National new areas which might be eligible for early on in the process rather than Park System. He found that despite re- inclusion in the System, nor has any wait weeks to receive a decision. ports of $300,000 outhouses, the Na- criteria been established by which a po- Mr. President, the Park Service is di- tional Park Service and Congress have tential park area would be evaluated. I rected by this legislation to establish a failed to deal with the lack of person- direct your attention to Title III of S. National Passport Program based on nel and fiscal resources desperately 1693 in which the legislation estab- the familiar and popular Duck Stamp needed in our parks. Unfortunately, lishes procedures and criteria for Con- used by the Fish and Wildlife Service. the needs are not limited to a certain gress and the National Park Service to The collectable stamp and related com- number of parks or areas of the United consider when studying potential new petition and posters etc. should States. The units of the National Park areas that may be added to the Sys- produce additional revenues for major System require a major face-lift from tem. park projects. In addition to the Na- coast to coast, in my State of Alaska, Mr. President, Title IV of this legis- tional Passport Program which will and parks on the islands of Hawaii and lation deals with concession reform. provide the user entrance into any one in American Samoa. After eight years of debate this very of the fee areas an international pass- While the lack of fiscal resources can contentious issue has been resolved. port will be sold overseas for use by be addressed. Throwing money to any Both Senator BUMPERS and Senator foreign visitors. government agency without account- THOMAS deserve a great deal of credit On another note we ask the National ability is in no one’s interest. In this to have turned this issue into a bi-par- Park Foundation to share their exper- regard the legislation requires the Sec- tisan one. Senator BENNETT as well as tise with many of the park’s friends retary to develop a comphensive train- Secretary Babbitt also deserve recogni- groups to encourage expansion of the ing program for employees in all pro- tion for their work and positive ap- volunteer ranks as well as to develop fessional careers, for the purpose of as- proach to working on the finer points entrepreneurial programs at the local suring that the work force has avail- of the concessions legislation. level. able the best, up-to-date knowledge, I have long been an advocate of We have looked at the National Park skills and abilities with which to man- granting an interest in property to System and found that many of our age, interpret and protect the re- those in the private sector who invest parks are adjacent to state and county sources of the National Park system. in our park facilities such as hotels, parks. There is no reason why the NPS The Secretary is also directed to im- lodges, and restaurants. The private cannot share their personnel and re- plement a clear plan for management sector requires this incentive or inter- sources with these local agencies and training and development to enable est to borrow from a bank—collateral— vice-versa. In other words you don’t only those qualified to move into posi- to invest in needed capital improve- need two snowploughs when one could tions of park superintendents and re- ments. The advantage is that we can be shared. This legislation changes the gional managers. improve visitor facilities with private The legislation also addresses park sector dollars as opposed to taxpayer law and provides the Park Service with budgets and accountability. Today in- dollars. However meritorious, the authorization to enter into agree- dividual park budgets, if you can find possessory interest has been a large ments with other local agencies. one, are a haze of smoke and mirrors. sticking point in ever reaching resolu- Our own United States Park Police When this legislation is enacted into tion on concession reform. are often the forgotten step-child of law each unit of the System will pre- As in any great bi-partisan com- the National Park Service. Their par- pare a budget and make it available to promise, no one got everything they ticular needs and requirements are un- the public. wanted. The concession folks lost their known even though we have asked for Mr. President, let me repeat, ‘‘make right of preference in renewal but are reports from the Administration on a available to the public’’ a five year allowed to maintain a form of number of occasions. Within a year we strategic plan and an annual perform- possessory interest. We were able to have that report so that Congress can ance plan pursuant to a published park place private sector expertise into the act in an appropriate manner while ad- budget on an individual park-by-park concession management program with dressing the critical needs of the Park basis. There will be accountability for an advisory committee made up of in- Police. the expenditure of all appropriated dividuals in the hospitality industry Mr. President, I thank the Members funds as well as monies collected from and the Secretary is directed to con- of the Committee on Energy and Natu- enhanced fee collection programs. tract-out certain concession manage- ral Resources who came together in a There will no longer be management in ment functions. bi-partisan fashion and reported the the darkness. Light will be shed where I firmly believe that this legislation bill to the full Senate 20 to 0. The Sen- no light has shown before. will enhance concession program man- ate can be proud, for this legislation During the 105th Congress we found agement, increase competition among represents a new beginning for the Na- that decisions by park service manage- prospective concession operators, im- tional Park System which will carry it ment are often not based on sound prove the delivery of goods and services into the next century, alive, vibrant science, in fact, in many parks to park visitors, improve facilities and and serving the hundreds and millions throughout the country the Service increase revenues from concession of park visitors yet to come. knows very little about the natural re- franchise fees. Perhaps, most important, our natu- sources they are supposed to protect. Mr. President, the legislation extends ral, cultural and historic resources for This legislation directs the Secretary the popular Recreational Fee Dem- which these parks have been set aside to undertake a program in inventory onstration Program from the year end- will be better protected and managed and monitoring of National Park Sys- ing in 1999 to 2005 and extends the fee for future generations. S6270 CONGRESSIONAL RECORD — SENATE June 11, 1998 I thank the Chair, and I thank my needs of the National Park Service. ship with the Republic of Korea, and has a colleagues for their support on this im- The restoration bill takes a broad ap- profound interest in furthering that relation- portant legislation. proach, with eight titles covering the ship; Mr. THOMAS. Mr. President, I want compromise bill. Whereas, the U.S. security relationship with the ROK, based on the 1953 Mutual De- to thank the Senate for approving S. Mr. President, the Senate can be fense Treaty, bilateral consultations and 1693, the ‘‘Vision 2020 National Parks proud of passing this landmark piece of combined is one of our most important, and Restoration Act.’’ This is the culmina- legislation. As Americans, one of the it is in both countries’ interest, as well as in tion of over two years of work and re- finest legacies that we can leave our the interest of the countries of the Asia Pa- flects a lifetime of concern I have had children and grandchildren is the Na- cific region for that relationship to be main- about protecting our nation’s parks. tional Park System that is healthy, vi- tained; America’s park system needs attention brant and alive. We have an obligation Whereas, the ROK is the United States’ and it needs our help soon. I believe to strengthen our outstanding system seventh largest trading partner, fifth largest export market and fourth largest market for this bill will provide it. of parks, the system that over 100 other U.S. agricultural products; When we began this effort more then nations have modeled after ours. Whereas, the recent presidential election a year ago I came to the floor and chal- Finally, I want to recognize the im- of Kim Dae Jung, formerly one of his coun- lenged Senators to imagine for a mo- portant contribution of the Secretary try’s most prominent dissidents, further ment an America without national of the Interior, Bruce Babbitt, in devel- demonstrates the strength and vibrancy of parks. How would we feel without Yo- oping this compromise bill. As folks democracy in the ROK; semite, Independence Hall, or Grand know, the Secretary and I don’t agree Whereas, the ROK has already made sig- Canyon protected for public enjoy- on all issues. However, to his credit, nificant strides in reforming, restructuring ment? How much of our national iden- and opening its economy in response to the the Secretary recognized the important Asian financial crisis; tity reflected in these icons—the Stat- work we are doing and dedicated time Whereas, President Kim has committed his ue of Liberty, Yellowstone, or the Na- and manpower of his agency to help. I administration to making an array of fur- tional Capital Mall—would be lost? thank the Secretary for his help. ther structural reforms that over the How much would be missing without Today is a good day for our parks. medium- to long-term, will produce a more the rugged, adventurous American It’s a good day for the U.S. Senate. Our open, competitive and dynamic Korea, bene- spirit embodied in Glacier Park or commitment is to leave our children fiting the Korean people, U.S.-ROK relations Denali? That was the challenge. The and grandchildren these wild and his- and the global economy; U.S. Senate has risen to answer that Resolved, That it is the sense of the Senate toric places healthy and whole. Today that: challenge by passing this bill today. we are one big step forward toward (1) The United States and the Republic of I’m profoundly proud of what we achieving that worthwhile aspiration. I Korea should continue to advance already have accomplished. This effort has once again want to thank the Senate close bilateral security, economic and politi- been on behalf of the millions of park for passing S. 1693 and urge the House cal ties for the mutual benefit of both coun- visitor that flock to the wide open of Representatives to take up this bill tries, and for the maintenance of peace, sta- spaces or the rich historic sites. It’s for as soon as possible. bility and prosperity in the Asia Pacific re- gion; and taxpayers who expect the very best re- f turn for their money. And it’s for the (2) Commends President Kim Dae Jung and future generations of people, for whom SENSE OF THE SENATE REGARD- the Republic of Korea for the measures al- ready implemented and those measures it we’ve worked hard, to preserve the ING THE UNITED STATES AND KOREA has committed to implement to resolve the very best of our public land heritage. country’s economic and financial problems. I want to express my deep appreciate Mr. THOMAS. Mr. President, I ask f to the chairman of the Senate Energy unanimous consent that the Foreign Committee, Chairman MURKOWSKI, as Relations Committee be discharged REMOVAL OF INJUNCTION OF SE- well as Senator BUMPERS and Senator from further consideration of S. Res. CRECY—TREATY DOCUMENT NO. BENNETT, who have labored long in this 245, and further, that the Senate pro- 105–50 AND TREATY DOCUMENT area of parks support, and I thank ceed to its immediate consideration. NO. 105–51 them for all of their hard work in this The PRESIDING OFFICER. Without Mr. THOMAS. Mr. President, as in legislation. The compromise we devel- objection it is so ordered. executive session, I ask unanimous oped in order to pass this measure is in The clerk will report. consent that the injunction of secrecy the finest tradition of the Senate. The The legislative clerk read as follows: be removed from the following treaties negotiations were tough, and nobody A resolution (S. Res. 245) expressing the transmitted to the Senate on June 11, got everything they wanted in the bill. sense of the Senate that the United States 1998, by the President of the United However, we have put together a good and the Republic of Korea should continue to States: advance already close bilateral security, eco- piece of legislation that will make a 1. Extradition treaty with Austria positive and proactive change to help nomic and political ties for the mutual bene- fit of both countries. (Treaty Document No. 105–50. our national parks. 2. Convention on Protection of Chil- I also want to recognize the hard The PRESIDING OFFICER. Is there dren and Cooperation in Respect of work of the staff, particularly Dan objection to the immediate consider- Intercountry Adoption (Treaty Docu- Naatz of my staff, and Jim O’Toole of ation of the resolution? ment No. 105–51). the committee staff. There being no objection, the Senate I further ask that the treaties be con- Over the last two years, we have spo- proceeded to consider the resolution. sidered as having been read the first ken to dozens of groups interested in Mr. THOMAS. Mr. President, I ask time; that they be referred, with ac- preserving our parks. We have traveled unanimous consent that the resolution companying papers, to the Committee across the country and listened to the be agreed to, the preamble be agreed on Foreign Relations and ordered to be concerns of folks ranging from the mo- to, the motion to reconsider be laid printed; and that the President’s mes- tion picture industry to natural re- upon the table, and a statement of ex- sages be printed in the RECORD. source experts. We have heard the sug- planation appear at this point in the The PRESIDING OFFICER. Without gestions as well as the criticisms of our RECORD. objection, it is so ordered. colleagues and worked to evaluate The PRESIDING OFFICER. Without The messages of the President are as areas where we could make positive objection, it is so ordered. follows: improvements for our parks. Through- The resolution (S. Res. 245) was out all of these meetings and hearings, agreed to. To the Senate of the United States: one message came through loud and The preamble was agreed to. With a view to receiving the advice clear—the value of national parks is The resolution, with its preamble, is and consent of the Senate to ratifica- one of the cultural constants for Amer- as follows: tion, I transmit herewith the Extra- icans. S. RES. 245 dition Treaty Between the Government The Vision 2020 bill provides a sys- Whereas, the United States maintains a of the United States of America and tematic approach to addressing the close, critical and robust bilateral partner- the Government of the Republic of June 11, 1998 CONGRESSIONAL RECORD — SENATE S6271 Austria, signed at Washington on Jan- essary regulations and institutional Senate, except where a privilege should uary 8, 1998. mechanisms in place. We would expect be asserted, with representation by the In addition, I transmit, for the infor- to deposit the U.S. instrument of rati- Senate Legal Counsel. mation of the Senate, the report of the fication and bring the Convention into Mr. THOMAS. Mr. President, I ask Department of State with respect to force for the United States as soon as unanimous consent that the resolution the Treaty. As the report explains, the we are able to carry out all of the obli- be agreed to, the preamble be agreed Treaty will not require implementing gations of the Convention. to, the motion to reconsider be laid legislation. It is estimated that U.S. citizens an- upon the table, and a statement of ex- This Treaty will, upon entry into nually adopt as many children from planation appear at this point in the force, enhance cooperation between the abroad as all other countries combined RECORD. law enforcement communities of both (13,621 children in Fiscal Year 1997). The PRESIDING OFFICER. Without countries. It will thereby make a sig- The Convention is intended to ensure objection, it is so ordered. nificant contribution to international that intercountry adoptions take place The resolution (S. Res. 247) was law enforcement efforts. This Treaty in the best interests of the children and agreed to. will supersede and significantly im- parents involved, and to establish a The preamble was agreed to. prove upon the Treaty between the system of cooperation among Contract- The resolution, with its preamble, is Government of the United States and ing States to prevent abduction of, and as follows: the Government of Austria for the ex- trafficking in children. We have S. RES. 247 tradition of fugitives from justice, worked closely with U.S. adoption in- Whereas, in the case of United States v. signed at Vienna on January 31, 1930, terests and the legal community in ne- Jack L. Williams, et al., Criminal Case No. and the Supplementary Extradition gotiating the provisions of the Conven- 96–0314, pending in the United States District Convention signed at Vienna on May tion and in preparing the necessary im- Court for the District of Columbia, a trial 19, 1934. plementing legislation. subpoena has been served upon Galen Foun- The provisions in this Treaty follow I recommend that the Senate give its tain, an employee of the Senate on the staff generally the form and content of ex- advice and consent to ratification of of the Committee on Appropriations, and testimony may be requested from Senator tradition treaties recently concluded this Convention, subject to the declara- Dale Bumpers; by the United States. tion described in the accompanying re- Whereas, pursuant to sections 703(a) and I recommend that the Senate give port of the Department of State. 704(a)(2) of the Ethics in Government Act of early and favorable consideration to WILLIAM J. CLINTON. 1978, 2 U.S.C. §§ 288b(a) and 288c(a)(2), the the Treaty and give its advice and con- THE WHITE HOUSE, June 11, 1998. Senate may direct its counsel to represent sent to ratification. f Members and employees of the Senate with WILLIAM J. CLINTON. respect to any subpoena, order, or request AUTHORIZING TESTIMONY, DOCU- for testimony relating to their official re- THE WHITE HOUSE, June 11, 1998. MENT PRODUCTION, AND REP- sponsibilities; To the Senate of the United States: RESENTATION OF MEMBERS AND Whereas, by the privileges of the Senate of With a view to receiving the advice EMPLOYEES OF THE SENATE the United States and Rule XI of the Stand- ing Rules of the Senate, no evidence under and consent of the Senate to ratifica- Mr. THOMAS. Mr. President, I ask the control or in the possession of the Senate tion, I transmit herewith the Conven- unanimous consent that the Senate may, by the judicial process, be taken from tion on Protection of Children and Co- proceed to the immediate consider- such control or possession but by permission operation in Respect of Intercountry ation of Senate resolution 247 submit- of the Senate; Adoption, adopted and opened for sig- ted earlier today by Senators LOTT and Whereas, by Rule VI of the Standing Rules of the Senate, no Senator shall absent him- nature at the conclusion of the Seven- DASCHLE. teenth Session of the Hague Conference The PRESIDING OFFICER. Without self from the service of the Senate without on Private International Law on May leave; objection, it is so ordered. Whereas, when it appears that evidence 29, 1993. Thirty-two countries, includ- The clerk will report. under the control or in the possession of the ing the United States, have signed the The legislative clerk read as follows: Senate may promote the administration of Convention, 17 countries have ratified A resolution (S. Res. 247) to authorize tes- justice, the Senate will take such action as it, and one country has acceded to it. timony, document production, and represen- will promote the ends of justice consistently The provisions of the Convention are tation of Members and employees of the Sen- with the privileges of the Senate: Now, fully explained in the report of the De- ate in U.S. Senate v. Jack L. Williams, et al. therefore, be it partment of State that accompanies The PRESIDING OFFICER. Is there Resolved, That Senator Dale Bumpers, this message. Galen Fountain, and any other employee objection to the immediate consider- from whom testimony or document produc- The Convention sets out norms and ation of the resolution? tion may be required, are authorized to tes- procedures to safeguard children in- There being no objection, the Senate tify and to produce documents in the case of volved in intercountry adoptions and proceeded to consider the resolution. United States v. Jacke L. Williams, et al., to protect the interests of their birth Mr. LOTT. Mr. President, this resolu- except when Senator Bumpers’ attendance at and adoptive parents. These safeguards tion concerns a criminal prosecution the Senate is necessary for the performance are designed to discourage trafficking brought against Jack L. Williams and of his legislative duties, and except concern- in children and to ensure that inter- Archibald R. Schaffer, III, representa- ing matters for which a privilege should be country adoptions are made in the best tives of Tyson Foods, Inc., alleging ille- asserted SEC. 2. That the Senate Legal Counsel is interest of the children involved. Co- gal gratuities to officials of the De- authorized to represent Senator Bumpers, operation between Contracting States partment of Agriculture, including Galen Fountain, and any other employee of will be facilitated by the establishment former Secretary Espy, and related the Senate, in connection with testimony in each Contracting State of a central charges. The Independent Counsel, who and document production in United States v. authority with programmatic and case- is bringing this prosecution, seeks evi- Jack L. Williams, et al. specific functions. The Convention also dence from an employee of the Senate f provides for the recognition of adop- on the professional staff of the Appro- NATIONAL TOBACCO AND YOUTH tions that fall within its scope in all priations Committee about commu- SMOKING REDUCTION ACT other Contracting States. nications with meat and poultry proc- The Convention leaves the details of essing industry representatives and Ex- The Senate continued with the con- its implementation up to each Con- ecutive Branch officials about a label- sideration of the bill. tracting State. Implementing legisla- ing rule promulgated by the Agri- AMENDMENT NO. 2689, AS FURTHER MODIFIED tion prepared by the Administration culture Department in 1993. The de- Mr. THOMAS. Mr. President, I ask will soon be transmitted for introduc- fense may also call Senator BUMPERS unanimous consent that the Kerry tion in the Senate and the House of to testify. amendment No. 2689 be further modi- Representatives. Once implementing This resolution would authorize tes- fied with the changes at the desk. legislation is enacted, some further timony and document production by The PRESIDING OFFICER. Without time would be required to put the nec- Senator BUMPERS and employees of the objection, it is so ordered. S6272 CONGRESSIONAL RECORD — SENATE June 11, 1998

The amendment (No. 2689), as further bacco bill. It is hoped that Members located in today’s RECORD under modified, is as follows: will come to the floor to offer and de- ‘‘Statements on Introduced Bills and On page 200, line 20, strike from the comma bate remaining amendments through- Joint Resolutions.’’) through line 21, and insert ‘‘;’’ after ‘‘Act.’’ out Friday’s session. Ms. COLLINS. I thank the Chair. I On page 202, line 7, strike from the comma The Senate may also consider the vo- yield the floor. and all that follows through line 14, and in- cational education bill, the Higher sert a period after (b)(2) on line 7. f At the appropriate place insert the follow- Education Act, the NASA authoriza- tion bill, the drug czar office reauthor- ing: ADJOURNMENT UNTIL 9:30 A.M. ization bill, and any other legislation (h) ASSISTANCE FOR CHILDREN.—A State TOMORROW shall use not less than 50 percent of the or executive items that may be cleared amount described in subsection (b)(2) for for action. The PRESIDING OFFICER. Under each fiscal year to carry out activities under As a reminder to all Members, the the previous order, the Senate is now the Child Care and Development Block Grant majority leader has announced there adjourned. Act of 1990 (42 U.S.C. 9858 et seq.). will be no rollcall votes during Friday’s Thereupon, the Senate, at 6:45 p.m., f session. Therefore, any votes ordered adjourned until Friday, June 12, 1998, at 9:30 a.m. ORDERS FOR FRIDAY, JUNE 12, 1998 during Friday’s session will be post- poned, to occur on Monday at a time to f Mr. THOMAS. Mr. President, I ask be determined by the two leaders, but unanimous consent that when the Sen- not before 5 o’clock. ate completes its business today, it NOMINATIONS f stand in adjournment until 9:30 a.m. on Executive nominations received by Friday, June 12. I further ask that on ORDER FOR ADJOURNMENT the Senate June 11, 1998: Friday, immediately following the Mr. THOMAS. Mr. President, there DEPARTMENT OF TRANSPORTATION prayer, the routine requests through being no further business to come be- KELLEY S. COYNER, OF VIRGINIA, TO BE ADMINIS- the morning hour be granted and the TRATOR OF THE RESEARCH AND SPECIAL PROGRAMS fore the Senate, I now ask the Senate ADMINISTRATION, DEPARTMENT OF TRANSPORTATION, Senate then begin a period of morning stand in adjournment under the pre- VICE DHARMENDRA K. SHARMA, RESIGNED. business until 10:30 a.m., with Senators vious order, following the remarks of FEDERAL ENERGY REGULATORY COMMISSION permitted to speak for up to 5 minutes Senator COLLINS. WILLIAM LLOYD MASSEY, OF ARKANSAS, TO BE A each with the following exception: Sen- The PRESIDING OFFICER. Without MEMBER OF THE FEDERAL ENERGY REGULATORY COM- ator BAUCUS for 20 minutes. MISSION FOR THE TERM EXPIRING JUNE 30, 2003. (RE- objection, it is so ordered. APPOINTMENT) The PRESIDING OFFICER. Without Mr. THOMAS. The Senator is on her objection, it is so ordered. UNITED STATES INTERNATIONAL DEVELOPMENT way. I suggest the absence of a COOPERATION AGENCY Mr. THOMAS. Further, I ask unani- quorum. CARLOS PASCUAL, OF THE DISTRICT OF COLUMBIA, TO mous consent that following morning The PRESIDING OFFICER. The BE AN ASSISTANT ADMINISTRATOR OF THE AGENCY FOR business, the Senate resume consider- clerk will call the roll. INTERNATIONAL DEVELOPMENT, VICE THOMAS A. DINE, RESIGNED. ation of S. 1415, the tobacco bill. The assistant legislative clerk pro- The PRESIDING OFFICER. Without ceeded to call the roll. IN THE NAVY objection, it is so ordered. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT Ms. COLLINS. Mr. President, I ask IN THE UNITED STATES NAVY TO THE GRADE INDICATED f unanimous consent that the order for WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND the quorum call be rescinded. RESPONSIBILITY UNDER TITLE 10, U.S.C, SECTION 601: PROGRAM The PRESIDING OFFICER. Without To be vice admiral Mr. THOMAS. For the information of objection, it is so ordered. REAR ADM. DANIEL J. MURPHY, JR., 6221 all Senators, the Senate will reconvene The Senator from Maine is recog- THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED STATES NAVY TO THE GRADE INDICATED tomorrow at 9:30 a.m. and begin a pe- nized. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND riod of morning business until 10:30 Ms. COLLINS. I thank the Chair. RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: a.m. Following morning business, we (The remarks of Ms. COLLINS pertain- To be admiral will resume consideration of the to- ing to the introduction of S. 2167 are VICE ADM. JAMES O. ELLIS, JR., 4995